MERCANTILE MUTUAL FUNDS, INC.
(THE "COMPANY")
SUPPLEMENT DATED AUGUST 2, 2000
TO PROSPECTUSES DATED MARCH 31, 2000
On June 6, 2000, the Board of Directors of the Company approved an
Agreement and Plan of Reorganization between the Company and Firstar Funds, Inc.
("Firstar Funds"). This approval was ratified by the Board of Directors of the
Company at a meeting held on July 11, 2000. The Agreement and Plan of
Reorganization, which provides for the reorganization of the Company into
Firstar Funds, will also be submitted to a vote of the shareholders of the
Company at a meeting to be held on or about November 8, 2000. If the Agreement
and Plan of Reorganization is approved by shareholders, and certain other
conditions are satisfied, the assets and liabilities of each of the Company's
portfolios will be transferred to similar portfolios in Firstar Funds, and the
shareholders of the Company's portfolios will become shareholders of Firstar
Funds. A combined proxy statement and prospectus with respect to the proposed
reorganization will be mailed to shareholders in advance of the meeting. If the
Agreement and Plan of Reorganization is approved by shareholders, it is expected
that the reorganization will occur in mid to late November 2000.
It is proposed that each portfolio of the Company (individually, a
"Mercantile Fund") would reorganize into the corresponding Firstar Funds
portfolio indicated below:
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MERCANTILE FUND CORRESPONDING FIRSTAR FUND
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Treasury Money Market Portfolio U.S. Treasury Money Market Fund
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Money Market Portfolio Money Market Fund
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Tax-Exempt Money Market Portfolio Tax-Exempt Money Market Fund
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Conning Money Market Portfolio* Conning Money Market Fund
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U.S. Government Securities Portfolio* U.S. Government Securities Fund
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Intermediate Corporate Bond Portfolio Intermediate Bond Market Fund
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Government & Corporate Bond Portfolio* Aggregate Bond Fund
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Bond Index Portfolio Aggregate Bond Fund
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Short-Intermediate Municipal Portfolio Tax-Exempt Intermediate Bond Fund
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Missouri Tax-Exempt Bond Portfolio* Missouri Tax-Exempt Bond Fund
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National Municipal Bond Portfolio* National Municipal Bond Fund
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Balanced Portfolio Balanced Growth Fund
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Equity Income Portfolio* Equity Income Fund
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Equity Index Portfolio Equity Index Fund
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Growth & Income Equity Portfolio Growth & Income Fund
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Growth Equity Portfolio Growth Fund
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Small Cap Equity Portfolio* Emerging Growth Fund
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Small Cap Equity Index Portfolio* Small Cap Index Fund
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International Equity Portfolio* Core International Equity Fund
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* The investment policies of the Mercantile portfolio are expected to
continue following the proposed reorganization.
