THE MANAGERS FUNDS
MONEY MARKET FUND
Supplement dated September 8, 1998
To Prospectus and Statement of Additional Information
dated May 1, 1998
The Prospectus and Statement of Additional Information are supplemented as
follows:
The investment objective of Managers Money Market Fund (the "Fund") was
reclassified from fundamental to nonfundamental (i.e, it may be changed
without shareholder approval). In addition, the following changes have
been adopted to the Fund's fundamental investment restrictions and policies.
Fundamental restrictions cannot be changed without a shareholder vote.
1. The Fund's current restrictions concerning the diversification of
investments have been replaced by the following fundamental investment
restriction: "The Fund may not make any investment inconsistent with
the Fund's classification as a diversified investment company under the
Investment Company Act of 1940."
2. The Fund's current restrictions concerning the concentration of
investments in a particular industry have been replaced with the
following fundamental investment restriction: "The Fund may not purchase
any security which would cause the Fund to concentrate its investments in
the securities of issuers primarily engaged in any particular industry
except as permitted by the SEC except that this restriction does not apply
to instruments considered to be domestic bank money market instruments."
3. The Fund's current restrictions concerning the issuance of senior
securities have been replaced with the following investment restriction:
"The Fund may not issue senior securities, except as permitted by the
Investment Company Act of 1940 or any rule, order or interpretation
thereunder."
4. The Fund's current restrictions concerning borrowing and reverse repurchase
agreements have been replaced with the following investment restriction:
"The Fund may not borrow money, except to the extent permitted by
applicable law."
5. The Fund's current restrictions concerning underwriting securities have
been replaced by the following investment restriction: "The Fund may not
underwrite securities of other issuers, except to the extent that the Fund,
in disposing of portfolio securities, may be deemed an underwriter within
the meaning of the 1933 Act."
6. The Fund's current restrictions concerning the purchase of real estate
have been replaced with the following investment restriction: "The Fund
may not purchase or sell real estate, except that, to the extent permitted
by applicable law, the Fund may (a) invest in securities or other
instruments directly or indirectly secured by real estate, (b) invest in
securities or other instruments issued by issuers that invest in real
estate."
7. The Fund's current restrictions concerning commodities have been replaced
with the following investment restriction: "The Fund may not purchase or
sell commodities or commodity contracts unless acquired as a result of
ownership of securities or other instruments issued by persons that
purchase or sell commodities or commodities contracts, but this shall not
prevent the Fund from purchasing, selling and entering into financial
futures contracts (including futures contracts on indices of securities,
interest rates and currencies), options on financial futures contracts,
warrants, swaps, forward contracts, foreign currency spot and forward
contracts, or other derivative instruments that are not related to
physical commodities."
8. The Fund's current restrictions concerning lending have been replaced by
the following investment fundamental restriction: "The Fund may make
loans to other persons, in accordance with the Fund's investment
objectives and policies and to the extent permitted by applicable law."
The following restrictions have changed from fundamental to nonfundamental
restrictions. Nonfundamental restrictions may be changed or eliminated by
the Fund's Trustees at any time without the approval of the Fund's
shareholders.
1. Purchase or sell puts, calls, straddles, spreads, or any combination
thereof or interests in oil, gas, or mineral exploration or development
programs.
2. Purchase securities on margin, make short sales of securities, or maintain
a short position, provided that these restrictions shall not be deemed to
be applicable to the purchase or sale of when-issued securities or of
securities for delivery at a future date.
3. Acquire securities of other investment companies, except as permitted by
the 1940 Act.
4. Acquire any illiquid securities, such as repurchase agreements with more
than seven days to maturity or fixed time deposits with a duration of over
seven calendar days if, as a result thereof, more than 10% of the market
value of the Fund's net assets would be in investments that are illiquid.
A new investment advisory agreement was approved between The Prime Money
Market Portfolio (in which Managers Money Market Fund invests all of its
assets) and J.P. Morgan Investment Management, Inc. ("JPMIM"). The change
in investment adviser is not expected to affect the Fund's investments or
other operations. JPMIM is a wholly-owned subsidiary of J.P. Morgan Co., Inc.
and is located at 522 Fifth Avenue, New York, NY 10036.
September 8, 1998
