DE LEON FUNDS TRUST
SUPPLEMENT
Dated August 18, 2000
de Leon
INTERNET 100 FUND
The prospectus for the de Leon Internet 100 Fund ("Fund") dated March 27, 2000
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..........................................0.75%
Distribution and/or Service (12b-1) Fees.................0.25%
Other Expenses...........................................6.67%
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Total Annual Fund Operating Expenses.........................7.67%*
Fee Waivers and/or Expense Reimbursements...................(5.77)%
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Net Expenses.................................................1.90%
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* "Total Annual Fund Operating Expenses" are based upon actual expenses
incurred by the Fund for the fiscal period from September 8, 1999
(commencement of operations) to June 30, 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, and extraordinary expenses) to not more than 1.90% of the
average daily net assets of the Fund for the fiscal year ending June
30, 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 7 should read as follows:
------------------------ ---------------- ----------------
Period Invested 1 Year 3 Years
------------------------ ---------------- ----------------
Your Costs $193 $1,733
------------------------ ---------------- ----------------
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, and other extraordinary expenses not
incurred in the ordinary course of the Fund's business) are limited to
1.90% of the average daily assets of the Fund for the fiscal year to end
June 30, 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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