THE MANAGERS FUNDS
Supplement dated October 2, 2000 to the
Prospectus
and Statement of Additional Information
dated May 1, 2000
The following information supersedes that
contained in the Prospectus and Statement of
Additional Information with respect to the
following Funds:
Managers Special Equity Fund
----------------------------
The Board of Trustees of The
Managers Funds approved the engagement of
Skyline Asset Management, L.P. ("Skyline") on
behalf of Managers Special Equity Fund
pursuant to a Sub-Advisory Agreement.
Because Skyline is an affiliate of The
Managers Funds LLC, the Board's approval is
subject to further approval by the
shareholders of the Fund. Before the
proposed Sub-Advisory Agreement is executed, a
special meeting of shareholders will be held
to consider this Agreement, as well as other
Fund matters. A proxy statement describing
the matters to be considered will be mailed to
each shareholder in advance of the meeting.
It is proposed that Skyline,
located in Chicago, Illinois, be added as a
fifth asset manager for Managers Special
Equity Fund. Goldman Sachs Asset Management,
Kern Capital Management LLC, Pilgrim, Baxter &
Associates, Ltd. and Westport Asset
Management, Inc. will remain as the other
portfolio managers for the Fund. Skyline will
be paid the same fee as the other four asset
managers on the Fund, 0.50% per annum of the
average daily net assets that Skyline manages.
Managers Income Equity Fund and Managers Short
and Intermediate Bond Fund
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The Board of Trustees of The Managers
Funds approved a proposal to change the name
and the corresponding investment objective for
each of the Managers Income Equity Fund and
the Managers Short and Intermediate Bond Fund.
It is proposed that Managers Income Equity
Fund be named Managers Value Fund and the
current investment objective be replaced with
the following:
"The Fund's objective is to achieve
long-term capital appreciation through a
diversified portfolio of equity securities.
Income is the Fund's secondary objective."
Furthermore, it is proposed that
Managers Short and Intermediate Bond Fund be
named Managers Intermediate Bond Fund and the
current investment objective be replaced with
the following:
"The Fund's objective is to achieve
high current income through a diversified
portfolio of fixed-income securities."
A special meeting of shareholders
will be held to consider this, as well as
other Fund matters, before the proposed
changes are made. A proxy statement
describing the matters to be considered will
be mailed to each shareholder in advance of
the meeting.
October 2, 2000
