<PAGE>
MAS Funds
Supplement dated May 9, 1996 to the Statement
of Additional Information dated January 30, 1996
This supplement to the Statement of Additional Information dated January 30,
1996, supersedes and replaces any existing supplements to the Statement of
Additional Information. This supplement provides new and additional information
and should be retained and read in conjunction with the Statement of Additional
Information. Unless otherwise indicated, defined terms have the same meaning as
in the Statement of Additional Information.
The following represents additional information pertaining to all MAS Funds
portfolios;
The following language supplements the information located in the "Comparative
Indices" section on pages 38-39 of the Statement of Additional Information:
Lehman Brothers 5-Year Municipal Bond Index
Lehman Brothers 5-Year Municipal Bond Index is a total return performance
benchmark for the intermediate, investment grade tax exempt bond market. The
index includes general obligation bonds, revenue bonds, insured bonds and
prefunded bonds with maturities between 4 and 6 years.
Lehman Brothers 10-Year Municipal Bond Index
Lehman Brothers 10-Year Municipal Bond Index is a total return performance
benchmark for the long term, investment grade tax exempt bond market. The index
includes general obligation bonds, revenue bonds, insured bonds and prefunded
bonds with maturities between 8 and 12 years.
The following language replaces (g) of the "Investment Limitations" section on
page 22 of the Statement of Additional Information:
(g) Each portfolio may pledge, mortgage or hypothecate assets in an amount up
to 50% of its total assets, provided that each portfolio may also segregate
assets without limit in order to comply with the requirements of Section
18(f) of the Investment Company Act of 1940, as amended, and applicable
interpretations thereof published from time to time by the Securities and
Exchange Commission and its staff.
<PAGE>
The following language supplements the information located in the "Trustees and
Officers" section on page 23 of the Statement of Additional Information:
David P. Eastburn retired as a Trustee of MAS Funds in February, 1996
Vincent R. McLean, Trustee of MAS Funds since February, 1996; Director,
Alexander and Alexander Services, Inc., Director, Legal and General America,
Inc.; Director, William Penn Life Insurance Company of New York; formerly
Executive Vice President, Chief Financial Officer, Director and Member of the
Executive Committee of Sperry Corporation (now part of Unisys Corporation).
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
