VONTOBEL FUNDS INC
497, 1997-07-16
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                             VONTOBEL FUNDS, INC.

      1500 Forest Avenue, Suite 223 * P.O. Box 8687 * Richmond, Va. 23226
              (800) 285-8211  (800) 527-9500  Fax (804) 285-8251




June 16, 1997



Filing Desk
U.S. Securities & Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549

      RE    :     Vontobel Funds, Inc.
                  File Number: 2-78931
                         Filing Pursuant to Rule 497(e)

Gentlemen:

      Transmitted herewith for electronic filing,  please find enclosed pursuant
to Rule  497(e) a copy of the  Supplement  to the  Prospectus  for the Sand Hill
Portfolio Manager Fund series (the "Fund") of Vontobel Funds, Inc.

      This supplement dated July 16, 1997 to the Prospectus dated March 14, 1997
reflects a vote of shareholders at a Special Meeting on July 11, 1997 to approve
an Agreement  and Plan of  Reorganization  under which the Fund will engage in a
change of domicile.

Sincerely,



/s/ John Pasco, III
John Pasco, III
Chairman




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July 16, 1997



On July 11,  1997,  at a  Special  Meeting  of  shareholders  of the  Sand  Hill
Portfolio Manager Fund (the "Fund"), shareholders approved an Agreement and Plan
of Reorganization under which the Fund will engage in a change of domicile.


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