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THE ARCH FUND(R), INC.
(the "Fund")
International Equity Portfolio
Supplement dated August 1, 1996
to
Prospectuses dated March 28, 1996
On July 17, 1996 Clay Finlay, Inc. ("Clay Finlay"), the sub-adviser to
the Fund's International Equity Portfolio (the "Portfolio"), announced that it
had agreed to become a wholly-owned subsidiary of United Asset Management
Corporation ("UAM"), a financial services holding company. The transaction,
which is scheduled to close on August 29, 1996, will result in the automatic
termination of Clay Finlay's sub-advisory agreement with Mississippi Valley
Advisors Inc. ("MVA"), the Portfolio's adviser, with respect to the Portfolio.
MVA has informed the Fund that it intends to recommend that Clay Finlay be
reappointed as the Portfolio's sub-adviser at a special meeting of the Fund's
Board of Directors scheduled for August 21, 1996. The reappointment of Clay
Finlay as sub-adviser will be subject to approval by the shareholders of the
Portfolio at a meeting to be held as soon as practicable thereafter. There is
not expected to be any increase in sub-advisory fees or change in portfolio
management as a result of Clay Finlay's becoming a subsidiary of UAM.
