MONITREND MUTUAL FUND
Supplement to the Prospectus
dated May 31, 1996
Monitrend Mutual Fund (the "Trust") has given notice that a
Special Meeting of Shareholders will be held on December 13, 1996, at
which Meeting its shareholders will be asked to vote upon the following
proposals:
1. Shareholders of the PIA Adjustable Rate Securities Fund
(the "Adjustable Rate Fund") will be asked to vote upon proposals: (i) to
change the Adjustable Rate Fund's investment objective so that it will be
"to provide investors with a high level of current income, consistent with
low volatility of principal through investing in short-term, adjustable
rate and floating rate securities issued or guaranteed by the U.S.
Government, its agencies and instrumentalities"; (ii) to change the
investment restrictions of the Adjustable Rate Fund to permit it to
purchase and sell futures contracts on debt securities and purchase and
write put and call options on debt securities and futures contracts on
debt securities; and (iii) to approve a new investment advisory agreement
with Pacific Income Advisers, Inc.
2. Shareholders of the Gaming and Leisure Fund (the "Gaming
Fund") will be asked to vote upon proposals: (i) to change the Gaming
Fund's investment objective and investment restrictions to require it to
concentrate its investments in the group of industries constituting the
biotechnology sector; (ii) to change the investment restrictions of the
Gaming Fund to permit it to effect short sales; (iii) to change the
investment restrictions of the Gaming Fund to permit it to purchase
restricted securities; (iv) to change the investment restrictions of the
Gaming Fund to permit it to purchase foreign securities and currencies;
(v) to change the investment restrictions of the Gaming Fund to permit it
to lend its portfolio securities; and (vi) to approve a new investment
advisory agreement with Murphy Investment Management, Inc.
3. Shareholders of the Growth & Income Fund will be asked to
vote upon proposals: (i) to change the Growth & Income Fund's investment
restrictions to permit it to effect short sales; (ii) to change the
investment restrictions of the Growth & Income Fund to permit it to
purchase restricted securities; (iii) to change the investment
restrictions of the Growth & Income Fund to permit it to purchase and
write put and call options and purchase and sell futures contracts on
stock indices and debt securities; (iv) to change the subclassification of
the Growth & Income Fund from that of a "diversified company" to that of a
"non-diversified company"; and (v) to approve a new investment advisory
agreement with Murphy Investment Management, Inc. who intends to achieve
the investment objective of the Growth & Income Fund by investing, under
normal circumstances, at least 65% of the Growth & Income Fund's assets in
convertible securities of issuers that Murphy Investment Management, Inc.
believes can produce products or services that provide a benefit from
advances in technology, which convertible securities may include "junk
bonds".
4. Shareholders of the PIA-Monitrend Government Income Fund
(the "Government Fund") will be asked to vote upon proposals: (i) to
change the investment restrictions of the Government Fund to permit it to
purchase foreign securities and currencies; (ii) to approve a new
investment advisory agreement with Pacific Income Advisers, Inc.; and
(iii) to approve a new sub-advisory agreement between Pacific Income
Advisers, Inc. and Camborne Advisors, Inc.
5. Shareholders of the Gold Fund will be asked to vote upon
proposals: (i) to change the investment restrictions of the Gold Fund to
permit it to purchase restricted securities; (ii) to change the investment
restrictions of the Gold Fund to permit it to purchase gold, silver,
platinum and palladium; and (iv) to approve a new investment advisory
agreement with Orrell and Company, Inc.
6. Shareholders of the Growth Fund will be asked to vote upon
a proposal to approve a new investment advisory agreement with Pacific
Income Advisers, Inc.
7. Shareholders of the Technology Fund will be asked to vote
upon a proposal to approve a new investment advisory agreement with Murphy
Investment Management, Inc.
A proxy statement dated November 21, 1996 contains additional
information about the above proposals. You may obtain a copy of the proxy
statement without charge by calling the Trust's Distributor, Syndicated
Capital, Inc., at (800) 251-1970 or by writing the Distributor at 1299
Ocean Avenue, Suite 210, Santa Monica, CA 90401. The Special Meeting of
Shareholders may be adjourned pending the presence of a quorum.
The Board of Trustees of the Trust has terminated the Trust's
agreement with Monitrend Investment Management, Inc., effective upon
approval of the new investment advisory agreements referred to above,
because Monitrend Investment Management, Inc. was unable to fulfill its
obligations to reimburse the Trust to the extent necessary to permit the
Trust to maintain the expense limitations set forth in the Prospectus.
Such obligations of Monitrend Investment Management, Inc. have been
assumed with respect to (i) the Gaming Fund, the Growth & Income Fund and
the Technology Fund by Murphy Investment Management, Inc.; (ii) with
respect to the Government Fund and Growth Fund by Pacific Income Advisers,
Inc.; and (iii) with respect to the Gold Fund by Orrell and Company, Inc.
The date of this Supplement is November 21, 1996.
