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MAS Funds
Supplement dated December 4, 1998 to the MAS Funds' Institutional Class
Prospectus dated January 31, 1998, as revised May 13, 1998
This supplement to the Prospectus supersedes and replaces any existing
supplements to the Prospectus. This supplement provides new and additional
information beyond that contained in the Prospectus and should be read in
conjunction with the Prospectus.
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Shareholders of the PA Municipal Portfolio approved its reorganization
at a meeting held on November 20, 1998. Accordingly, by December 7, 1998, the PA
Municipal Portfolio will transfer all of its assets and liabilities to the
Municipal Portfolio and will cease operations.
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PORTFOLIO MANAGEMENT TEAM CHANGES
Page 25 of the Prospectus is hereby amended to include Ram Willner as a
member of the Portfolio Management Team of the Global Fixed Income Portfolio.
Page 62 of the Prospectus is hereby amended to include the following
description of Ram Willner's business experience during the last five years:
Ram Willner, Principal, Morgan Stanley, joined MAS in 1998. He served as a
Market Strategist, Risk Control Manager and Director of International Bond
Research for Pacific Investment Management Company from 1994 to 1998: and as a
Senior Quantitative Analyst for Sanford C. Bernstein & Co. from 1992 to 1994. He
joined the Portfolio Management Team of the Global Fixed Income Portfolio in
1998.
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Due to other responsibilities within the firm, Ellen D. Harvey has been
removed as a member of the Portfolio Management Teams of the Intermediate
Duration and Limited Duration Portfolios. In addition, Paul Ghaffari has been
removed as a member of the Portfolio Management Team of the Multi-Market Fixed
Income Portfolio. Therefore, pages 27, 29, 31 and 61 of the Prospectus are
hereby amended to reflect these changes.
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Page 27 of the Prospectus is hereby amended to include Angelo G.
Manioudakis as a member of the Portfolio Management Team of the Intermediate
Duration Portfolio.
Page 62 of the Prospectus is hereby amended to include the following
description of Angelo G. Manioudakis' business experience during the last five
years:
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Angelo G. Manioudakis, Principal, joined MAS in 1993. He attended Harvard
Graduate School of Business Administration from 1991 to 1993, receiving an MBA.
He served as a fixed income analyst from 1993 to 1995. From 1995 to 1998, he
served as a fixed income portfolio manager. He joined the Portfolio Management
Team of the Intermediate Duration Portfolio in 1998.
Page 29 of the Prospectus is hereby amended to include Michele A.
Kreisler as a member of the Portfolio Management Team of the Limited Duration
Portfolio.
Page 62 of the Prospectus is hereby amended to include the following
description of Michele A. Kreisler's business experience during the last five
years:
Michele A. Kreisler, Vice President, joined MAS in 1994. She received her Ph.D.
in Finance from the Wharton School of the University of Pennsylvania in 1996.
She served as a fixed income analyst from 1994 to 1995 and as a portfolio
manager from 1995 to 1998. She joined the Portfolio Management Teams of the
Targeted Duration and Limited Duration Portfolios in 1998.
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POLICIES CHANGES
The following futures and options policy replaces the existing futures
and options policy for all fixed-income Portfolios:
A fixed-income portfolio may enter into futures contracts and options thereon
for both hedging and non-hedging purposes, provided that not more than 5% of
such portfolio's total assets at the time of entering the transaction are
required as margin and option premiums to secure obligations under such
contracts other than those relating to bona fide hedging activities. It will
maintain assets sufficient to meet its obligations under such contracts in a
segregated account with the custodian bank or will otherwise comply with the
Securities and Exchange Commission's ("SEC's") position on asset coverage.
The futures and options policy for all equity and balanced portfolios remains
unchanged.
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The Policies Section of the Municipal Portfolio on page 32 of this
Prospectus is hereby amended to read as follows:
Generally at least 80% of its income will be exempt from regular
federal income tax Derivatives may be used to pursue portfolio strategy
PLEASE RETAIN FOR FUTURE REFERENCE
