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Supplement dated December 31, 1999
to the Prospectus dated December 31, 1999,
of Flag Investors Cash Reserve Prime Shares
(the "Fund")
The following information regarding Flag Investors Class B Shares
remains in effect until January 18, 2000 and is effective for acquisitions of
Class B Shares prior to January 18, 2000:
You may pay the sales charges listed below if you acquire and hold
Class B Shares of the Fund.
Maximum Deferred Sales Charge (Load) (as a percentage of
original purchase price or redemption proceeds, whichever
is lower)..................................................... 4.00%*
*Contingent deferred sales charges decline over time and reach zero
after six years. At that time, Class B Shares convert automatically to Class A
Shares.
Example:
This Example is intended to help you compare the cost of investing in
Class B Shares with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in Class B Shares for the
time periods indicated and then redeem all of your shares at the end of those
periods. The Example also assumes that your investment has a 5% return each year
and that the Class B Shares' operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions your costs would
be:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
-------------------------------------------------------------
<S> <C> <C> <C> <C>
Class B Shares ............................... $546 $752 $982 $1,353
You would pay the following expenses if you did not redeem your shares:
Class B Shares ............................... $146 $452 $782 $1,353
</TABLE>
The amount of any sales charge deducted from your Class B Shares'
redemption price will be determined according to the following schedule.
Class B Sales Charge as a Percentage of the Dollar
Years Since Purchase Amount Subject to Charge
First ...................... 4.00%
Second ..................... 4.00%
Third....................... 3.00%
Fourth...................... 3.00%
Fifth....................... 2.00%
Sixth....................... 1.00%
Thereafter.................. None
PLEASE DISCARD THIS SUPPLEMENT ON JANUARY 18, 2000
