SCM INVESTMENT TRUST
SUPPLEMENT
Dated July 28, 2000
SCM Strategic Growth Fund
The prospectus for the SCM Strategic Growth Fund ("Fund") dated September 30,
1999 is modified as follows:
o The "Annual Fund Operating Expenses" table on page 6 should read as
follows:
Annual Fund Operating Expenses
(expenses that are deducted from Fund assets)
---------------------------------------------
Management Fees......................................0.85%
Distribution and/or Service (12b-1) Fees.............None
Other Expenses.......................................0.99%
----
Total Annual Fund Operating Expenses.....................1.84%*
Fee Waivers and/or Expense Reimbursements...............(0.24)%
----
Net Expenses.............................................1.60%
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* "Total Annual Fund Operating Expenses" are based upon actual
expenses incurred by the Fund for the fiscal year ended May
31, 2000. The Advisor has entered into a contractual agreement
with the Fund under which it has agreed to waive or reduce its
fees and to assume other expenses of the Fund, if necessary,
in an amount that limits "Total Annual Fund Operating
Expenses" (exclusive of interest, taxes, brokerage fees and
commissions, extraordinary expenses, and payments, if any,
under a Rule 12b-1 Plan) to not more than 1.60% of the average
daily net assets of the Fund for the fiscal year ending May
31, 2001. It is expected that the contractual agreement will
continue from year-to-year provided such continuance is
approved by the Board of Trustees. See "Expense Limitation
Agreement" below for more detailed information.
o The table corresponding to the "Example" on page 6 should read as follows:
--------------------- ------------ ------------ ------------ ------------
Period Invested 1 Year 3 Years 5 Years 10 Years
--------------------- ------------ ------------ ------------ ------------
Your Costs $163 $555 $973 $2,139
--------------------- ------------ ------------ ------------ ------------
o The paragraphs under the "Expense Limitation Agreement" section on page 7
is modified as follows:
Expense Limitation Agreement. In the interest of limiting expenses of the
Fund, the Advisor has entered into an expense limitation agreement with the
Trust ("Expense Limitation Agreement"), pursuant to which the Advisor has
agreed to waive or limit its fees and to assume other expenses so that the
total annual operating expenses of the Fund (other than interest, taxes,
brokerage commissions, other expenditures which are capitalized in
accordance with generally accepted accounting principles, other
<PAGE>
extraordinary expenses not incurred in the ordinary course of the Fund's
business, and amounts, if any, payable pursuant to a Rule 12b-1 Plan) are
limited to 1.60% of the average daily assets of the Fund for the fiscal
year to end May 31, 2001. The Expense Limitation Agreement shall continue
from year-to-year provided such continuance is specifically approved by a
majority of the Trustees of the Trust who (i) are not "interested persons"
of the Trust or any other party to this Agreement, as defined in the 1940
Act, and (ii) have no direct or indirect financial interest in the
operation of this Expense Limitation Agreement.
The Fund may, at a later date, reimburse the Advisor for the fees waived or
limited and other expenses assumed and paid by the Advisor pursuant to the
Expense Limitation Agreement during any of the previous five (5) fiscal
years, provided that the Fund has reached a sufficient asset size to permit
such reimbursement to be made without causing the total annual expense
ratio of the Fund to exceed the percentage limits stated above.
Consequently, no reimbursement by the Fund will be made unless: (i) the
Fund's assets exceed $20 million; (ii) the Fund's total annual expense
ratio is less than the percentage stated above; and (iii) the payment of
such reimbursement has been approved by the Trust's Board of Trustees on a
quarterly basis.
Investors Should Retain This Supplement for Future Reference
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