FUNDAMENTAL FAMILY OF FUNDS
(collectively, the "Funds")
Fundamental Fixed Income Fund
(Fundamental U.S. Government Strategic Income Fund)
(High-Yield Municipal Bond Series)
(Tax-Free Money Market Series)
The California Muni Fund
Fundamental Funds, Inc.
(New York Muni Fund)
Supplement Dated March 16, 1999
to
Prospectus dated May 1, 1998
The following proposals were approved by shareholders of the Funds at
the Special Meeting of Shareholders ("Special Meeting") held on March 12, 1999:
1. Approved new Investment Advisory Agreements between the Funds and
Cornerstone Equity Advisors Inc. ("Cornerstone");
2. Ratified the payment of advisory fees by the Funds to Cornerstone for
the period from November 30, 1998 through the date of the Special
Meeting;
3. Elected the following persons to serve on the Fund Boards:
William J. Armstrong
L. Greg Ferrone
G. John Fulvio
Stephen C. Leslie
Leroy E. Rodman
Dr. Yvonne Scruggs-Leftwich
4. With respect to the Tax-Free Money Market Series, reclassified an
investment policy prohibiting investment in other investment companies
as non-fundamental.
