SUPPLEMENT DATED JANUARY 6, 1997 TO PROSPECTUS DATED JULY
29, 1996 OF GRADISON-MCDONALD ESTABLISHED VALUE FUND, GROWTH
& INCOME FUND, OPPORTUNITY VALUE FUND, AND INTERNATIONAL
FUND
The following paragraph is added to become the second
paragraph on page fourteen of the Prospectus:
The International Fund (the "Fund") may buy call and
put options on foreign currencies. Buying a call gives
the Fund the ability to buy the currency on which the
call was written at the call price during the period in
which the call may be exercised. Buying a put gives
the Fund the ability to sell the currency on which the
call was written at the put price during the period in
which the put may be exercised. The Fund may buy put
or call options on a currency irrespective of the size
of the position it may hold in securities of that
currency, if any. The Fund may not purchase options on
currency to the extent that the total premium cost
exceeds 5% of the Fund's total assets. The Fund may
execute options transactions on recognized exchanges or
in the over-the-counter markets. The Fund's ability to
terminate options in the over-the -counter markets may
be more limited than for exchange-traded options
because of the possible lack of a secondary trading
market and may also involve the risk that securities
dealers participating in such transactions would be
unable to meet their obligations to the Fund. The use
of options involves certain special risks. Options
transactions involve costs and may result in losses.
See, generally, "Risks of Futures and Foreign Currency
Contracts" in the Prospectus.
This Supplement should be retained with the Prospectus.
SUPPLEMENT DATED JANUARY 6, 1997 TO STATEMENT OF ADDITIONAL
INFORMATION DATED JULY 29, 1996 OF GRADISON - MCDONALD
INTERNATIONAL FUND
The next to last sentence of the last paragraph on page 10
of the Statement of Additional Information is replaced with
the following sentence:
However, the Fund has no present intention of
purchasing or selling any of these instruments other
than stock index futures contracts, forward currency
contracts, and options on foreign currency.
Non-fundamental investment restriction (x) on page 23 of the
Statement of Additional Information is replaced with the
following:
(x) invest in puts, calls, straddles, spreads, and
any combination thereof, if by reason thereof the
premium cost of its aggregate investment in such
options will exceed 5% of its total assets.
