September 27, 2000
THE FAIRMONT FUND
A Series Of
THE CAMELOT FUNDS
Supplement to Prospectus
Dated May 1, 2000
ADDITIONAL INFORMATION ABOUT INVESTMENT TECHNIQUES,
RELATED RISKS AND THE FUND
The first paragraph of the section entitled "Additional Information
About Investment Techniques, Related Risks, and the Fund" on page 10 of the
Prospectus is replaced in its entirety with the following:
From time to time, the Fund may take temporary defensive
positions that are inconsistent with the Fund's principal strategies in
attempting to respond to adverse market, economic, political or other
conditions. For example, the Fund may hold all or part of its assets in
money market instruments, securities of no-load money-market funds,
obligations of the U.S. Government, its agencies or instrumentalities,
or may enter into repurchase agreements that are fully collateralized
by such obligations. If a Fund invests in shares of a money market
fund, the shareholders of the Fund generally will be subject to
duplicative management fees. As a result of engaging in these temporary
defensive measures, the Fund may not achieve its investment objective.
The Fund may also invest in such instruments at any time to maintain
liquidity or pending selection of investments in accordance with its
policies.
This supplement and the Prospectus dated May 1, 2000 provide the
information a prospective investor ought to know before investing and should be
retained for future reference. A Statement of Additional Information has been
filed with the Security and Exchange Commission dated May 1, 2000, which is
incorporated herein by reference and can be obtained without charge by calling
The Camelot Funds at 1-800-262-9936.
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