MERCURY FOCUS TWENTY FUND, INC.
Supplement dated January 18, 2001 to the
Prospectus and Statement of Additional
Information, each dated March 21, 2000 (as
supplemented August 4, 2000)
The Management Agreement between Master Focus Twenty Trust (the
"Trust") and Fund Asset Management, L.P. ("FAM"), as investment adviser, has
been amended to remove from the agreement FAM's obligation to provide
administrative services to the feeder funds, including Mercury Focus Twenty
Fund, Inc. (the "Fund"), and to reduce the management fee from 0.85% to 0.60%
of the Trust's average daily net assets. Simultaneously, the Fund and FAM
entered into a separate Administration Agreement pursuant to which FAM, as
administrator, has agreed to provide the same administrative services to the
Fund that were previously provided pursuant to the Management Agreement and to
receive monthly compensation for such services at the annual rate of 0.25% of
the Fund's average daily net assets. As a result of these changes, the Trust
and the Fund will continue to receive the same services from FAM that they had
received prior to the changes and FAM will receive the same aggregate fees for
providing these services.
