Veredus Funds
CROSS REFERENCE SHEET
FORM N-1A
VEREDUS GROWTH FUND
ITEM SECTION IN PROSPECTUS
1........................Cover Page
2........................Summary of Fund Expenses
3........................Performance Information
4........................The Fund, Investment Objective and Strategies and
Risk Considerations, Operation of the Fund,
General Information
5........................Operation of the Fund,(Supplement to the Prospectus)
5A.......................None
6........................Cover Page, Dividends and Distributions, Taxes,
General Information, How to Redeem Shares
7........................Cover Page, How to Invest in the Fund, Share Price
Calculation, Operation of the Fund, How to Redeem
Shares
8........................How to Redeem Shares
9........................None..
13........................Investment Objectives and Strategies and Risk
Considerations
15........................General Information
SECTION IN STATEMENT OF
ITEM ADDITIONAL INFORMATION
10........................Cover Page
11........................Table of Contents
12........................None
13........................Additional Information About Fund Investments and
Risk Considerations, Investment Limitations
14........................Trustees and Officers
15........................Description of the Trust
16........................The Investment Adviser, Custodian, Transfer Agent,
Accountants, Trustees and Officers
17........................Portfolio Transactions and Brokerage
18........................Description of the Trust
19........................Determination of Share Price
20........................None
21........................Distributor
22........................Investment Performance
23........................Financial Statements
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Supplement Dated October 27, 1998
To Prospectus Dated June 24, 1998
The following information supplements the section of the Prospectus titled
"Operation of the Fund", page 11.
On October 26, 1998, Veredus Asset Management LLC ("VAM"), the investment
adviser to the Veredus Growth Fund, informed the Board of Trustees of Veredus
Funds that VAM had entered into an agreement pursuant to which Alleghany Asset
Management, Inc. ("Alleghany") will purchase a significant interest in VAM. The
purchase by Alleghany is contingent on approval, by the shareholders of Veredus
Growth Fund, of the reorganization and merger of Veredus Growth Fund into a new
series of the Alleghany Funds (the "New Fund"), which would result in the Fund
becoming one of the funds in the Alleghany family of funds. VAM will be the
investment adviser to the New Fund, and the New Fund will have the same
investment objective and substantially the same investment policies as Veredus
Growth Fund. The New Fund will have no operations until the reorganization
occurs. In addition, VAM anticipates no significant changes in its operations or
personnel as a result of Alleghany's purchase. The Board of Trustees considered
the proposed reorganization and its effect on shareholders and has determined
that the proposed reorganization is in the best interests of the shareholders of
Veredus Growth Fund. The Board of Trustees approved the reorganization, subject
to shareholder approval. It is anticipated that shareholders will soon receive a
notice of a shareholder meeting and a proxy statement explaining the proposed
reorganization in more detail.
The proxy statement will also request shareholder approval of an "interim"
management agreement. The interim management agreement may be necessary because
the proposed purchase by Alleghany Asset Management, Inc. of an interest in VAM
could result in the automatic termination of the current management agreement.
If Alleghany Asset Management's purchase occurs prior to the consummation of the
proposed reorganization, the interim agreement will take effect. The interim
agreement is identical to the existing management agreement, except for its
effective date.
This supplement, and the Prospectus dated June 24, 1998, contain
information that you should know before investing in the Veredus Growth Fund and
should be retained for future reference. Additional information is included in
the Statement of Additional Information dated June 24, 1998, which has been
filed with the Securities and Exchange Commission and is incorporated herein by
reference. It is available upon request without charge by calling 1-877-VEREDUS.
