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<PAGE>
FORUM FUNDS
DAILY ASSETS TREASURY FUND
DAILY ASSETS GOVERNMENT FUND
DAILY ASSETS CASH FUND
Supplement to Prospectus Dated August 1, 1996
Shares of Daily Assets Government Fund currently are not offered for sale.
Shares of Daily Assets Cash Fund currently are not offered for sale. Shares
will be offered for sale on September 1, 1996.
August 1, 1996
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