August 18, 1999
SUPPLEMENT TO PROSPECTUS FOR
NORTH AMERICAN SENIOR FLOATING RATE FUND
Dated April 13, 1999
This supplement contains important information about a change in the Fund's
Class C shares, effective August 18, 1999.
Class C shares purchased on or after August 18, 1999 will not convert into
Class A shares. Class C shares purchased prior to August 18, 1999 will continue
to convert into Class A shares after 10 years as described in the Prospectus.
If you tender your Class C shares for repurchase or exchange in one of the
Fund's monthly repurchase offers, Class C shares will be repurchased in order of
the date purchased, with the shares purchased earliest being repurchased first,
unless you specifically request that specific shares be repurchased.
If you participate in the Fund's Dividend Reinvestment Plan and you own
Class C shares purchased before August 18, 1999 (converting Class C shares),
shares purchased through the reinvestment of dividends and distributions paid
on those converting Class C shares will be considered to be held in a separate
sub-account. Each time converting Class C shares in your Fund account (other
than shares in the sub-account) convert to Class A shares, a pro rata portion of
the Class C shares in the sub-account will also convert to Class A shares. Class
C shares purchased through the reinvestment of dividends and distributions paid
on Class C shares purchased on or after August 13, 1999 will not convert to
Class A shares.
The above information should be read in connection with the description of
Class C shares in the following places in the Prospectus: the second to last
paragraph under the heading "Fund Expenses" on page 3; under the sub-headings
"Class C shares" and "Automatic Conversion" on page 6; under the sub-headings
"Class C shares," "Conversion Feature," and "Factors for Consideration" on pages
21-22; any other discussion of the conversion of Class C shares to Class A
shares in this Prospectus.
The following table replaces the table appearing on page one of the
Prospectus:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRICE TO PROCEEDS TO
PUBLIC(1) SALES LOAD(2) FUND(3)
---------------- --------------- ----------------
<S> <C> <C> <C>
Per Class B Share $ 10.01 None $ 10.01
- ------------------- ------------ --------------- ------------
Per Class C Share $ 10.01 None $ 10.01
Total $183,040,596 None $183,040,596
=================== ============ =============== ============
</TABLE>
(1) The shares are offered on a best efforts basis at a price equal to net asset
value, which as of July 26, 1999 was $10.01 per share.
(2) Class B and Class C shares are subject to an Early Withdrawal Charge and
asset-based Distribution and Service Fees.
(3) Assuming the sale of shares currently registered but unsold as of July 26,
1999, at a price of $10.01 per share, and exclusion of approximately
$272,500 organizational and initial offering expenses payable by the Fund.
These expenses will be amortized over the one year period beginning August
31, 1998, the date the Fund com-menced investment operations, and charged
against the Fund's income. Expenses of registering additional shares of the
Fund, in the amount of approximately $120,000, are charged against the Fund's
income on an ongoing basis, subject to expense reimbursements.
The following paragraph is added after the last paragraph appearing under
the heading "Distribution Expenses" on page 25 of the Prospectus:
The compensation paid to securities dealers and the principal underwriter paid
at the time of the purchase, the trail commissions described in the
Prospectus, and the early withdrawal charge paid to securities dealers and the
principal underwriter, if any, in connection with this offering will not
exceed 8% of the aggregate offering price, unless the National Association of
Securities Dealers permits.
<PAGE>
The following paragraph is added after the first paragraph appearing under
the heading "Description of Shares" on page 29 of the Prospectus:
Class C shares purchased on or after August 13, 1999 are a new series of Class
C shares designated as "New Class C Common Stock." Shares of New Class C
Common Stock do not convert automatically to Class A shares. In all other
respects they are identical to all other Class C shares as described in the
Prospectus.
The following table, which sets forth information as of July 26, 1999,
replaces the table appearing on page 30 of the Prospectus:
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
(1) (2) (3) (4)
Amount
Outstanding
Amount Held by Exclusive of
Registrant or for its Amount Shown
Title of Class Amount Authorized Account Under (3)
- ---------------- -------------------- ----------------------- -------------
<S> <C> <C> <C>
Class A 400,000,000 shares None None
- ---------------- -------------------- ----------------------- ---------
Class B 300,000,000 shares None 2,316,598
- ---------------- -------------------- ----------------------- ---------
Class C 300,000,000 shares None 9,397,637
================ ==================== ======================= =========
</TABLE>
<PAGE>
August 18, 1999
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION FOR
NORTH AMERICAN SENIOR FLOATING RATE FUND
Dated April 13, 1999
The information below should be read in connection with the description of
Class C shares on page 18 and any other discussion of the conversion of Class C
shares to Class A shares in this Statement of Additional Information.
Class C shares purchased on or after August 18, 1999 will not convert into
Class A shares. Class C shares purchased prior to August 18, 1999 will continue
to convert into Class A shares after 10 years as described in the Prospectus.
If you tender your Class C shares for repurchase or exchange in one of the
Fund's monthly repurchase offers, Class C shares will be repurchased in order of
the date purchased, with the shares purchased earliest being repurchased first,
unless you specifically request that specific shares be repurchased.
If you participate in the Fund's Dividend Reinvestment Plan and you own
Class C shares purchased before August 18, 1999 (converting Class C shares),
shares purchased through the reinvestment of dividends and distributions paid
on converting Class C shares will be considered to be held in a separate
sub-account. Each time converting Class C shares in your Fund account (other
than shares in the sub-account) convert to Class A shares, a pro rata portion of
the Class C shares in the sub-account will also convert to Class A shares. Class
C shares purchased through the reinvestment of dividends and distributions paid
on Class C shares purchased on or after August 18, 1999 will not convert to
Class A shares.
