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Rule 497(e)
File No. 333-80473
H&Q IPO & EMERGING COMPANY FUND
Supplement dated October 15, 1999 to
Common Class and Adviser Classes Prospectuses and Statement of Additional
Information dated September 15, 1999
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION CONTAINED IN THE COMMON
CLASS AND ADVISER CLASSES PROSPECTUSES AND THE STATEMENT OF ADDITIONAL
INFORMATION FOR THE H&Q IPO & EMERGING COMPANY FUND (THE "FUND"):
On September 27, 1999, Hambrecht & Quist Group, the indirect parent company of
Hambrecht & Quist Fund Management, LLC ("HQFM") and Hambrecht & Quist LLC
("H&Q"), the Fund's investment adviser and distributor, respectively, agreed to
be acquired by The Chase Manhattan Corporation ("Chase"), a bank holding company
with more than $350 billion in assets. The acquisition is structured as an
all-cash tender offer followed by a merger, after which Hambrecht & Quist Group
will be a wholly-owned subsidiary of Chase. The acquisition is expected to be
completed by the end of the year and is subject to customary conditions,
including acceptance of the tender offer by a majority of Hambrecht & Quist
Group's outstanding shares and receipt of applicable regulatory approvals.
Upon the completion of the acquisition, in order to meet certain regulatory
requirements, Provident Distributors, Inc. ("PDI"), Four Falls Corporate Center,
Sixth Floor, West Conshohocken, Pennsylvania 19428, an affiliate of the Fund's
administrator, transfer agent and custodian, will succeed H&Q as the distributor
of the Fund. H&Q will instead act as a financial intermediary that has been
authorized by the distributor to sell the Fund's shares. In addition, William R.
Timken, one of the Trustees of the Trust who is affiliated with Hambrecht &
Quist Group, will resign as a Trustee, and the number of Trustees will be
reduced to four. Following the completion of the acquisition, it is anticipated
that HQFM will continue to act as investment adviser, and Symphony Asset
Management, LLC ("Symphony") will continue to act as sub-adviser, to the Fund.
The acquisition could be deemed to be an "assignment," as defined in the
Investment Company Act of 1940, of the Fund's current advisory agreement,
sub-advisory agreement and distribution agreement, which would result in the
termination of these agreements. Accordingly, the Trustees of the Trust will
meet prior to the completion of the acquisition to consider a new advisory
agreement with HQFM, a new sub-advisory agreement between HQFM and Symphony, and
a new distribution agreement with PDI which would take effect upon completion of
the acquisition. In the event that the Trustees do not approve the new
agreements and the acquisition is completed, the Trustees will consider what
further action should be taken. If the acquisition is not completed for any
reason, the current advisory, sub-advisory and distribution agreements will
remain in place.
