SUPPLEMENT DATED AUGUST 10, 1998 TO
THE STATEMENTS OF ADDITIONAL INFORMATION OF
THE MERRILL LYNCH SELECT PRICING(SERVICE MARK) SYSTEM FUNDS
Reference is made to the section in the Statement of Additional Information
entitled "Shareholder Services - Exchange Privilege." Effective on or about
October 12, 1998, it is anticipated that the following changes will be made:
1. The sentence dealing with exchanges into money market funds in the
first paragraph in such section will be deleted and replaced in its entirety
with the following sentence:
Class A and Class D shares also will be exchangeable for Class A
shares, and Class B and Class C shares also will be exchangeable for
Class B shares, of Summit Cash Reserves Fund, a series of Financial
Institutions Series Trust, which is a Merrill Lynch-sponsored money
market fund specifically designated as available for exchange by
holders of Class A, Class B, Class C and Class D shares as more fully
described below.
2. The paragraph dealing with exchanges into money market funds in such
section will be deleted and replaced in its entirety with the following
paragraphs:
Shareholders also may exchange their shares into shares of
Summit Cash Reserves Fund, which is a Merrill Lynch-sponsored money
market fund specifically designated as available for exchange by
holders of Class A, Class B, Class C and Class D shares. Class A and
Class D shares will be exchangeable for Class A shares of, and Class B
and Class C shares will be exchangeable for Class B shares of, Summit
Cash Reserves Fund. Class A shares of Summit Cash Reserves Fund have an
exchange privilege back into Class A or Class D shares of MLAM-advised
funds; Class B shares of Summit Cash Reserves Fund have an exchange
privilege back into Class B or Class C shares of MLAM-advised funds.
The period of time that Class B shares of Summit Cash Reserves Fund are
held will count toward satisfaction of the holding period requirement
for purposes of reducing any CDSC and, with respect to Class B shares,
toward satisfaction of any conversion period. Class B shares of Summit
Cash Reserves Fund will be subject to a distribution fee at an annual
rate of 0.75% of average daily net assets of such Class B shares.
The exchange privilege described above does not apply with respect to
certain Merrill Lynch fee-based programs, for which alternative exchange
arrangements may exist. Please see you Merrill Lynch Financial Consultant for
further information.
CODE # SELECT-ALL4
