<PAGE>
CLASS K SHARES
Prospectus
O C T O B E R 8, 1 9 9 9
THE MUNDER INSTITUTIONAL FUNDS
Institutional S&P 500 Index Equity Fund
Institutional S&P MidCap Index Equity Fund
Institutional S&P SmallCap Index Equity Fund
Institutional Short Term Treasury Fund
Institutional Money Market Fund
As with all mutual funds, the Securities
and Exchange Commission does not
guarantee that the information in this
prospectus is accurate or complete, nor
has it approved or disapproved these
securities. It is a criminal offense to
state otherwise.
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Table Of Contents
<TABLE>
<C> <S>
2 Risk/Return Summary
Index Funds
2 Goals and Main Investment Strategies
2 Principal Risks
3 Who May Want To Invest
4 Performance
Short Term Treasury Fund
5 Goal and Main Investment Strategies
5 Principal Risks
5 Who May Want To Invest
5 Performance
Money Market Fund
6 Goal and Main Investment Strategies
6 Principal Risks
6 Who May Want To Invest
6 Performance
7 Expenses
8 More About Munder Institutional Funds
11 Your Investment
11 How To Reach The Funds
11 Purchasing Shares
11 Redeeming Shares
11 Additional Policies for Purchases and Redemptions
12 Service Agents
13 Pricing of Fund Shares
13 Distributions
14 Federal Tax Considerations
14 Taxes On Distributions
14 Taxes On Sales
14 Other Considerations
15 Management
15 Investment Advisor
15 Year 2000
16 Appendix
</TABLE>
Back Cover For Additional Information
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Risk/Return Summary
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This Risk/Return Summary briefly describes each of the Munder Institutional
Funds and the principal risks of investing in the Funds. For further
information on the Funds, please read the section entitled More About Munder
Institutional Funds.
An investment in a Fund is not a bank deposit and is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other governmental agency.
SmallCap Index Equity Fund
The Fund's goal is to provide price performance and income that is comparable
to the Standard & Poor's SmallCap 600 Index (S&P SmallCap 600). The S&P
SmallCap 600 is an index of 600 stocks that emphasizes small capitalization
companies.
The Fund invests primarily in stocks and it normally will hold the shares of at
least 80% of the issuers in the S&P SmallCap 600.
The Fund may also purchase foreign securities, enter into futures contracts and
lend portfolio securities, which are described below under "More About Munder
Institutional Funds."
Principal Risks
The Index Funds are subject to the following principal investment risks:
. The Index Funds will invest in the securities included in the relevant index
regardless of market trends. As a result, the Index Funds cannot modify their
investment strategies to respond to changes in the economy, which means they
may be particularly susceptible to a general decline in the stock market
segment relating to the relevant index.
. An adverse event, such as an unfavorable earnings report, may depress the
value of a particular stock held by an Index Fund.
. The share price of each Index Fund will change daily based on market
conditions and other factors; you may lose money if you invest in the Funds.
. None of the Index Funds can be certain it will achieve its investment goal.
. The MidCap Index Equity Fund and SmallCap Index Equity Fund invest in stocks
of smaller companies, which may have more risks than stocks of larger
companies. They may be more susceptible to market downturns, their prices may
be more volatile and they may be less liquid.
Index Funds
Goals And Main Investment Strategies
S&P 500 Index Equity Fund
The Fund's goal is to provide price performance and income that is comparable
to the Standard and Poor's 500 Composite Stock Price Index (S&P 500). The S&P
500 is an index of 500 stocks that emphasizes large capitalization companies.
The Fund invests primarily in stocks and it normally will hold the shares of at
least 80% of the issuers in the S&P 500.
The Fund may also purchase foreign securities, enter into futures contracts and
lend portfolio securities, which are described below under "More About Munder
Institutional Funds."
Midcap Index Equity Fund
The Fund's goal is to provide price performance and income that is comparable
to the Standard & Poor's MidCap 400 Index (S&P MidCap 400). The S&P MidCap 400
is an index of 400 stocks that emphasizes medium capitalization companies.
The Fund invests primarily in stocks and it normally will hold the shares of at
least 80% of the issuers in the S&P MidCap 400.
The Fund may also purchase foreign securities, enter into futures contracts and
lend portfolio securities, which are described below under "More About Munder
Institutional Funds."
2
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Investment Approach
. The advisor manages the Index
Funds through a "quantitative"
or "indexing" investment
approach, which attempts to
duplicate the investment
composition and performance of
the particular index through
statistical procedures.
. The advisor invests in stocks
that are included in the
particular index, in
approximately the same
proportions as they are
represented in the index.
. Because the Index Funds have
operating expenses and an index
does not, the Index Funds will
not be able to match the
performance of their respective
index exactly.
. The advisor attempts to track
the performance of the
particular index within a 0.95
correlation.
Who May Want To Invest
The Index Funds may be appropriate for investors:
. Looking to invest over the long term.
. Able to ride out market swings.
. Looking to invest in a diversified stock portfolio focused on a particular
stock market segment.
None of the Index Funds alone provides a balanced investment program.
3
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Performance
The chart and table below give some indication of the variability of the S&P
500 Index Equity Fund's returns by showing calendar year to year changes in the
S&P 500 Index Equity Fund's performance and the risk of an investment in the
S&P 500 Index Equity Fund by comparing the Fund's performance with a broad
measure of market performance. Both the MidCap Index Equity Fund and SmallCap
Index Equity Fund do not have a full calendar year of investment returns at the
date of this prospectus. For this reason, no performance information for those
Funds is provided in this prospectus.
When you consider this information, please remember the Fund's performance in
past years is not necessarily an indication of how the Fund will do in the
future.
S&P 500 Index Equity Fund
Total Return*
(per calendar year)
[TABLE APPEARS HERE]
40% 30% 20% 10% 0%
28.22% 1998
<TABLE>
<CAPTION>
Highest and Lowest Return*
(1998)
------------------
Quarter Ending
------------------
<S> <C> <C>
Highest 21.17% December 31, 1998
------------------
Lowest -9.94% September 30, 1998
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns*
(through December 31, 1998)
------------------------
Life of Fund
1 Year (since 10/14/97)
------------------------
<S> <C> <C>
S&P 500 Index
Equity Fund 28.22% 23.06%
------------------------
S&P 500 Compos-
ite Index 28.57% 23.39%
</TABLE>
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*The annual returns in the bar chart, the highest and lowest return chart and
the average annual total return chart are for the Fund's Class Y shares,
which are not offered in this prospectus, and do not reflect a shareholder
servicing fee. Performance for Class K shares would have substantially
similar annual returns because the shares are invested in the same portfolio
of securities and the annual returns would differ only to the extent that
the Classes do not have the same expenses.
4
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Short Term Treasury Fund
Goal And Main Investment Strategies
The Fund's goal is to provide investors with a high level of current income
consistent with the preservation of capital.
The Fund invests in U.S. Treasury securities and repurchase agreements fully
collateralized by U.S. Treasury securities. The Fund will purchase U.S.
Treasury securities with remaining maturities of three years or less. The
Fund's dollar weighted average maturity usually will not exceed two years.
The Fund may also engage in short-term trading and securities lending, which
are described below under "More About Munder Institutional Funds."
Principal Risks
The Fund is subject to the following principal investment risks:
. In general, prices of U.S. Treasury securities, like other fixed income
securities, fall when interest rates rise.
. Generally, the longer the average maturity of the securities in the Fund, the
more the Fund's share price will fluctuate in response to interest rate
changes.
. The share price of the Fund will change daily based on economic and market
conditions, interest rates and other factors.
. The Fund is not a money market fund and although it seeks to maintain minimum
fluctuation of principal value, you may lose money if you invest in the Fund.
. The Fund cannot be certain it will achieve its investment goal.
Who May Want To Invest
The Fund may be appropriate for investors who desire a high level of income,
liquidity and stability of principal.
The Fund alone does not provide a balanced investment program.
Performance
The Fund had not commenced operations as of the date of this Prospectus and,
therefore, has no performance information to report.
5
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Money Market Fund
Goal And Main Investment Strategies
The Fund's goal is to provide as high a level of current interest income as is
consistent with maintaining liquidity and stability of principal.
The Fund invests in U.S. dollar-denominated money market securities, including
U.S. Government securities, bank obligations, commercial paper and repurchase
agreements.
The Fund may also invest in foreign securities, guaranteed investment
contracts, and asset-backed securities, and engage in securities lending, which
are described below under "More About Munder Institutional Funds."
Principal Risks
The Fund is subject to the following principal investment risks:
. The rate of income will vary from day to day, depending on short-term
interest rates.
. The Fund may invest more than 25% of its assets in the banking industry.
Concentrating investments in the banking industry may involve additional
risk. Banks are subject to extensive government regulation that may limit
their operations. They largely depend on the availability and cost of capital
funds for their profitability, which can change significantly when interest
rates change.
. Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible you may lose money by investing in the Fund. For
example, a major change in interest rates or a default on a security or a
repurchase agreement could cause the value of your investment to decline.
. The Fund cannot be certain it will achieve its goal.
Who May Want To Invest
The Fund may be appropriate for investors who desire a high level of current
income, liquidity and stability of principal.
The Fund alone does not provide a balanced investment program.
Performance
The Fund does not have a full calendar year of investment returns at the date
of the Prospectus and, therefore, no performance information has been provided.
6
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Expenses
The table below describes the fees and expenses that you may pay if you buy and
hold Class K shares of the Munder Institutional Funds. Please note the
following does not include fees that institutions may charge for services they
provide to you.
<TABLE>
<CAPTION>
Shareholder Fees
(fees paid directly from your investment)
- -----------------------------------------
<S> <C>
Maximum Sales Charge (Load) Imposed on Purchase............................ None
Sales Charge (Load) Imposed on Reinvested Dividends........................ None
Maximum Deferred Sales Charge (Load)....................................... None
Redemption Fees............................................................ None
Exchange Fees.............................................................. None
</TABLE>
<TABLE>
<CAPTION>
Annual Fund Operating
Expenses (expenses that S&P 500 MidCap SmallCap Short Term Money
are paid from Fund assets) Index Equity Index Equity Index Equity Treasury Market
as a % of net assets Fund Fund Fund Fund Fund
- -------------------------- ------------ ------------ ------------ ---------- ------
<S> <C> <C> <C> <C> <C>
Management Fees (1) .07% .15% .15% .20% .20%
Other Expenses
Shareholder Servicing
Fee .25% .25% .25% .25% .25%
Other Operating Expenses
(1) .25% .73% 4.43% .55% .18%
---- ----- ----- ----- ----
Total Other Expenses .50% .98% 4.68% .80% .43%
---- ----- ----- ----- ----
Total Annual Fund Operat-
ing
Expenses (1) .57% 1.13% 4.83% 1.00% .63%
==== ===== ===== ===== ====
</TABLE>
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(1) The advisor has voluntarily agreed to waive the management fees for the S&P
500 Index Equity Fund, MidCap Index Equity Fund and SmallCap Index Equity
Fund and to reimburse the Funds' operating expenses to keep the Funds'
other expenses at specified levels, as set forth below. The advisor may
eliminate all or part of the fee waiver and/or expense reimbursement at any
time. Because of the fee waiver and expense reimbursement, the actual
management fees, other operating expenses and total annual fund operating
expenses would be: .00%, .09% and .34%, respectively, for the S&P 500 Index
Equity Fund, .00%, .18% and .43%, respectively, for the MidCap Index Equity
Fund and .00%, .18% and .43% respectively, for the SmallCap Index Equity
Fund. Because of the expense reimbursement, it is estimated that other
operating expenses and total annual fund operating expenses for the current
fiscal year will be: .03% and .48%, respectively, for the Short Term
Treasury Fund and .00% and .45%, respectively, for the Money Market Fund.
Example
This example is intended to help you compare the cost of investing in the
Munder Institutional Funds to the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in a Fund for the time periods
indicated and then sell all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year, that the
Fund's operating expenses remain the same as shown in the table above and that
all dividends and distributions are reinvested. Although your actual costs and
the return on your investment may be higher or lower, based on these
assumptions your costs would be:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
S&P 500 Index Equity Fund....................... $ 58 $ 183 $ 319 $ 717
MidCap Index Equity Fund........................ $115 $ 360 $ 624 $1,380
SmallCap Index Equity Fund...................... $486 $1,461 $2,438 $4,893
Short Term Treasury Fund........................ $102 $ 319 -- --
Money Market Fund............................... $ 64 $ 202 -- --
</TABLE>
7
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More About Munder Institutional Funds
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Index Funds
The Funds' main strategies and risks are summarized above in the section
entitled Risk/Return Summary-Index Funds. Below is further information about
the Funds' principal investments. The Funds may also use strategies and invest
in securities described in the Statement of Additional Information.
Equity Securities The Funds invest in equity securities which include common
stocks, preferred stocks, convertible preferred stocks and warrants or rights
to subscribe for or purchase such securities. Securities considered for
purchase by the Index Funds may be listed or unlisted.
Foreign Securities Each Fund may invest in foreign securities, which include
securities issued by foreign companies and foreign governments and their
agencies, instrumentalities or political subdivisions and supranational
organizations. Investments by each Fund in foreign securities involve risks in
addition to those of U.S. securities. Foreign securities are generally more
volatile and less liquid than U.S. securities, in part because of higher
political and economic risks and because there is less public information
available about foreign companies. Also, a decline in the value of foreign
currencies relative to the U.S. dollar will reduce the value of securities
denominated in those currencies.
Futures Contracts Each Fund may, but is not required to, use futures contracts
which are a type of derivative. A derivative is a financial contract whose
value is based on a security, an asset or a market index. The main risk with
derivatives is that some types can amplify a gain or loss, potentially earning
or losing substantially more money than the actual cost of the derivative. With
some derivatives, there is also the risk that the other party to the contract
may fail to honor its obligations, causing a loss for the Fund. The Funds will
not use derivatives for speculative purposes. Rather, each Fund will use
futures contracts to gain exposure to its index for its cash balances.
Securities Lending Each Fund may seek additional income by lending portfolio
securities to qualified institutions. By reinvesting any cash collateral it
receives in these transactions, the Fund could realize additional gains or
losses. If the borrower fails to return the securities and the invested
collateral has declined in value, the Fund could lose money.
Portfolio Managers
Kenneth A. Schluchter III and Darin McBride jointly manage the S&P 500 Index
Equity Fund and jointly manage the MidCap Index Equity Fund. Mr. Schluchter and
Mark Drouse jointly manage the SmallCap Index Equity Fund.
Mr. Schluchter, Director of Domestic Investments of the advisor, has managed
the Funds since their inception. He was previously a systems developer and data
analyst for Compuware Incorporated (1993-1995).
Mr. McBride, a portfolio manager of the advisor, has also managed the S&P 500
Index Equity Fund and the MidCap Index Equity Fund since their inception.
Previously, Mr. McBride was a portfolio research analyst at Flexible Plan
Investments, Ltd. (1995-1997) and an account executive at Ryder Systems, Inc.
(1993-1994).
Mr. Drouse has managed the SmallCap Index Equity Fund since its inception,
utilizing his systems experience in quantitative investment management.
Previously, he was a portfolio analyst for the advisor (1996 -1997), a systems
administrator for Munder Capital Management (1995-1996) and a WAN network
administrator for Comerica Bank (1993-1995).
Short Term Treasury Fund
The Fund's main strategies and risks are summarized above in the section
entitled Risk/Return Summary-Short Term Treasury Fund. Below is further
information about the Fund's principal investments. The Fund may also use
strategies and invest in securities described in the Statement of Additional
Information.
U.S. Treasury Securities Securities purchased by the Fund are direct
obligations of the U.S. Treasury and are guaranteed by the full faith and
credit of the U.S. Government. These securities consist of U.S. Treasury bills
and U.S. Treasury notes. U.S. Treasury securities differ in their interest
rates, maturities and times of issuance. Treasury bills have initial maturities
of one year or less and Treasury notes have initial maturities of one to ten
years.
8
<PAGE>
A portion of the U.S. Treasury Securities purchased by the Fund may be zero
coupon securities. These are U.S. Treasury notes which have been stripped of
their unmatured interest coupons and receipts. These securities are issued at a
discount from their face value because interest payments are typically
postponed until maturity. Zero coupon U.S. Treasury securities are generally
more sensitive to interest rate changes than are comparable debt securities
that make current distributions of interest.
Repurchase Agreements The Fund may buy U.S. Treasury securities from financial
institutions with the understanding that the seller will buy them back with
interest at a later date. If the seller is unable to honor its commitment to
repurchase the securities, the Fund could lose money.
Short Term Trading The Fund may engage in active and frequent trading to
achieve its investment goal. Frequent trading may increase transaction costs,
which could detract from the Fund's performance, and may increase your tax
liability.
Securities Lending The Fund may seek additional income by lending portfolio
securities to qualified institutions. By reinvesting any cash collateral it
receives in these transactions, the Fund could realize additional gains or
losses. If the borrower fails to return the securities and the invested
collateral has declined in value, the Fund could lose money.
Portfolio Manager
Sharon E. Fayolle manages the Fund. Ms. Fayolle has been Vice President and
Director of Money Market Trading for the advisor since 1996. Prior to that she
managed an international portfolio for Ford Motor Company.
Money Market Fund
The Fund's main strategies and risks are summarized above in the section
entitled Risk/Return Summary-Money Market Fund. Below is further information
about the Fund's principal investments. The Fund may also use strategies and
invest in securities described in the Statement of Additional Information.
The Fund has specific investment policies and procedures designed to maintain a
constant $1.00 net asset value per share. The Fund complies with rules of the
Securities and Exchange Commission, which impose certain liquidity, maturity
and diversification requirements. The Fund's investments must have remaining
maturities of 397 days or less and the average maturity of the Fund's
investments must be 90 days or less.
Money Market Securities The Fund invests in money market securities, which are
high quality, short-term debt securities that pay a fixed, variable or floating
rate of interest. Securities are often specifically structured so that they are
eligible investments for a money market fund. For example, in order to satisfy
the maturity restrictions for a money market fund, some money market securities
have demand or put features which have the effect of shortening the security's
maturity. Money market securities include certificates of deposit, bankers'
acceptances, bank time deposits, notes, commercial paper and U.S. Government
securities.
U.S. Government Securities The Fund invests in U.S. Government securities,
which are high-quality securities issued or guaranteed by the U.S. Treasury or
by an agency or instrumentality of the U.S. Government. U.S. Government
securities may be backed by the full faith and credit of the U.S. Treasury, the
right to borrow from the U.S. Treasury, or the agency or instrumentality
issuing or guaranteeing the security.
Foreign Securities The Fund may invest in U.S. dollar denominated money market
securities of foreign issuers, which include securities issued by foreign
companies and foreign governments and their agencies, instrumentalities or
political subdivisions and supranational organizations. Investments by the Fund
in foreign securities involve risks in addition to those of U.S. securities.
Foreign securities are generally more volatile and less liquid than U.S.
securities, in part because of higher political and economic risks and because
there is less public information available about foreign companies.
Repurchase Agreements The Fund may buy securities with the understanding that
the seller will buy them back with interest at a later date. If the seller is
unable to honor its commitment to repurchase the securities, the Fund could
lose money.
9
<PAGE>
Guaranteed Investment Contracts The Fund invests in guaranteed investment
contracts. Guaranteed investment contracts are agreements of the Fund to make
payments, generally to an insurance company's general account, in exchange for
a minimum level of interest based on an index. Guaranteed investment contracts
are considered illiquid investments and are acquired subject to the Fund's
limitation on illiquid investments.
Asset-Backed Securities Subject to applicable maturity and credit criteria, the
Fund may purchase securities backed by mortgages, installment sales contracts,
credit card receivables or other assets. Mortgage-backed securities carry
additional risks. The price and yield of these securities typically assume that
the securities will be redeemed at a given time before maturity. When interest
rates fall substantially, these securities are generally redeemed early because
the underlying mortgages are often prepaid. In that case the Fund would have to
reinvest the money at a lower rate. In addition, the price or yield of
mortgage-backed securities may fall if they are redeemed later than expected.
Variable and Floating Rate Securities Variable and floating rate securities
have interest rates that are periodically adjusted either at set intervals or
that float at a margin above a generally recognized index rate. These
securities exhibit greater price variations than fixed-rate securities.
Securities Lending The Fund may seek additional income by lending portfolio
securities to qualified institutions. By reinvesting any cash collateral it
receives in these transactions, the Fund could realize additional gains or
losses. If the borrower fails to return the securities and the invested
collateral has declined in value, the Fund could lose money.
10
<PAGE>
Your Investment
- -------------------------------------------------------------------------------
This section describes how to do business with the Munder Institutional Funds.
How To Reach The Funds
By telephone:
1-800-438-5789
Call for account information
By mail: The Munder Funds
480 Pierce Street
Birmingham, MI 48009
Purchasing Shares
Who May Purchase Shares
Customers (and their immediate family members) of banks and other institutions
that have entered into agreements with us to provide shareholder services for
customers may purchase Class K Shares. Customers may include individuals,
trusts, partnerships and corporations. Each Fund also issues other classes of
shares, which have different sales charges, expense levels and performance.
Call (800) 438-5789 to obtain move information concerning the Funds' other
classes of shares.
Purchase Price of Shares
Class K shares of the Funds are sold at the NAV next determined after a
purchase order is received in proper form.
Method for Purchasing Shares
You may purchase shares through selected banks or other institutions.
Policies for Purchasing Shares
. All share purchases are effected through a customer's account at an
institution and confirmations of share purchases will be sent to the
institution involved.
. Institutions (or their nominees) will normally be the holders of record of
Fund shares acting on behalf of their customers, and will reflect their
customers' beneficial ownership of shares in the account statements provided
by them to their customers.
. Purchase orders must be received by the Fund's distributor or the transfer
agent before the close of
regular trading on the New York Stock Exchange (normally, 4:00 p.m. Eastern
time).
Redeeming Shares
Redemption Price
We will redeem shares at the NAV next determined after we receive the
redemption request in proper form.
Methods for Redeeming Shares
. You may redeem shares of all Funds through your bank or other financial
institution.
Policies for Redeeming Shares
. Shares held by an institution on behalf of its customers must be redeemed in
accordance with instructions and limitations pertaining to the account at
that institution.
If we receive a redemption order for a Fund (other than the Money Market Fund)
before 4:00 p.m. (Eastern time), we will normally wire payment to the
redeeming institution on the next business day. If we receive a redemption
order for the Money Market Fund before 12:00 noon (Eastern time), we will
normally wire payment to the redeeming institution on the same business day.
If an order for the Money Market Fund is received between 12:00 noon and 4:00
p.m. (Eastern time), payment is normally wired the next business day.
Additional Policies for Purchases and Redemption
. We consider requests to be in "proper form" when all required documents are
properly completed, signed and received.
. If your purchase order payment for the Money Market Fund is received in
proper form before 2:45 p.m. (Eastern time), you will receive dividends for
that day. If your redemption order is received in proper form before 2:45
p.m. (Eastern time), you will not receive dividends for that day.
. The Funds reserve the right to reject any purchase order.
11
<PAGE>
. At any time, the Funds may change any of their purchase or redemption
procedures, and may suspend the sale of their shares.
. The Funds may delay sending redemption proceeds for up to seven days, or
longer if permitted by the Securities and Exchange Commission.
. To limit the Funds' expenses, we no longer issue share certificates.
. We will typically send redemption amounts to you within seven business days
after you redeem shares. We may hold redemption amounts from the sale of
shares you purchased by check until the purchase check has cleared, which
may be as long as 15 days.
. A Fund may temporarily stop redeeming shares if:
. the New York Stock Exchange is closed;
. trading on the New York Stock Exchange is restricted;
. an emergency exists and the Fund cannot sell its assets or accurately
determine the value of its assets;
. If the Securities and Exchange Commission orders the Fund to suspend
redemptions.
. If accepted by the Fund, investors may purchase shares of a Fund with
securities that the Fund may hold. The advisor will determine if the
securities are consistent with the Fund's objectives and policies. If
accepted, the securities will be valued the same way the Fund values
portfolio securities it already owns. Call the Funds at (808)-438-5789 for
more information.
. The Funds reserve the right to make payment for redeemed shares wholly or in
part by giving the redeeming shareholder portfolio securities. The
shareholder may pay transaction costs to dispose of these securities.
. We record all telephone calls for your protection and take measures to
identify the caller. As long as the Funds' transfer agent takes reasonable
measures to authenticate telephone requests on an investor's account, neither
the Funds, the Funds' distributor nor the transfer agent will be held
responsible for any losses resulting from unauthorized transactions.
. Financial institutions are responsible for transmitting orders and payments
for their customers on a timely basis.
Service Agents
Class K shares of the Funds are sold through institutions that have entered
into shareholder servicing agreements with the Funds. These agreements are
permitted under the Fund's Shareholder Servicing Plan. Under the agreements,
the institutions provide shareholder services to their customers who are
record or beneficial owners of Class K shares. In return for providing these
services, the institutions are entitled to receive a fee from each Fund at an
annual rate of up to 0.25% of the average daily net asset value of the Class K
shares owned by their customers. Class K shares bear all fees paid to
institutions under the Shareholder Servicing Plan. payments are not tied
exclusively to the shareholder expenses actually incurred by the institutions
and may exceed service expenses actually incurred.
Please note that Comerica Bank, an affiliate of the advisor, receives a fee
from the Funds for providing shareholder services to its customers who own
shares of the Funds.
In addition, the advisor may, form time to time, make payments to banks,
broker-dealers or other financial institutions for certain services to the
Funds and/or their shareholders, including sub-administration, sub-transfer
agency and shareholder servicing. The advisor may make such payments out of
its own resources and there are no additional costs to the Funds or their
shareholders.
12
<PAGE>
Pricing Of Fund Shares
- --------------------------------------------------------------------------------
Each Fund's NAV is calculated on each day the New York Stock Exchange is open.
NAV is the value of a single share of a Fund. NAV is calculated by (1) taking
the current market value of a Fund's total assets, (2) subtracting the
liabilities and (3) dividing that amount by the total number of shares owned by
shareholders.
Index Funds And Short Term Treasury Fund
The Funds calculate NAV as of the close of business on the New York Stock
Exchange, normally 4:00 p.m. Eastern time. If the New York Stock Exchange
closes early, the Funds will accelerate their calculation of NAV and
transaction deadlines to that time.
Each Fund generally values the securities held in the Fund based on market
quotations and valuations provided by independent pricing services. If
quotations are not readily available or if the advisor believes that events
occurring after the close of a foreign exchange have rendered the quotations
unreliable, the Fund may use fair-value estimates instead. A Fund that uses
fair value to price securities may value those securities higher or lower than
a fund that uses market quotations.
Foreign securities are valued based on quotations from the primary market in
which they are traded, and are converted from the local currency into U.S.
dollars using current exchange rates. Foreign securities may trade in their
primary markets on weekends or other days when the Fund does not price its
shares. Therefore, the value of the portfolio of a Fund holding foreign
securities may change on days when shareholders will not be able to buy or sell
their shares.
Money Market Fund
The Money Market Fund calculates NAV as of 3:00 p.m. Eastern time and as of the
close of the New York Stock Exchange, normally 4:00 p.m., Eastern time. In
determining the Money Market Fund's NAV, securities are valued at amortized
cost, which is approximately equal to market value. If the New York Stock
Exchange closes early, the Fund will accelerate its calculation of NAV and
transaction deadlines to that time.
Distributions
- --------------------------------------------------------------------------------
Shareholders are entitled to their share of a Fund's net income and gains on
its investments. Each Fund passes substantially all of its earnings along to
its shareholders as distributions. When a Fund earns dividends from stocks and
interest from debt securities and distributes these earnings to shareholders,
it is called a dividend distribution. A Fund realizes capital gains when it
sells securities for a higher price than it paid. When these gains are
distributed to shareholders, it is called a capital gain distribution. Dividend
distributions may be made several times a year, while capital gain
distributions are generally made on an annual basis.
Index Funds
These Funds pay dividends quarterly.
Short Term Treasury Fund
This Fund pays dividends monthly.
Money Market Fund
Dividend distributions are declared daily and paid monthly. If a purchase order
is accepted by 3:00 p.m. Eastern time, the investor will receive dividends for
that day. If a redemption order is received before 3:00 p.m. Eastern time, the
redeeming shareholder will not receive dividends for that day.
All Funds
Shareholders will receive distributions from a Fund in additional shares of
that Fund unless they elect to receive distributions in cash.
13
<PAGE>
Federal Tax Considerations
- --------------------------------------------------------------------------------
Investments in a Fund will have tax consequences that investors should
consider. This section describes some of the more common federal tax
consequences, but investors should consult their tax adviser about the
investor's own particular situation.
Taxes On Distributions
Shareholders will generally have to pay federal income tax on all Fund
distributions. Distributions will be taxed in the same manner whether the
shareholder receives the distributions in cash or additional shares of the
Fund. Distributions that are derived from net long-term capital gains generally
will be taxed as long-term capital gains. Dividend distributions and short-term
capital gains generally will be taxed as ordinary income. The tax a shareholder
pays on a given capital gains distribution generally depends on how long the
Fund held the portfolio securities it sold. It does not depend on how long the
shareholder held the Fund shares.
The Money Market Fund and the Short Term Treasury Fund expect that their
distributions will consist primarily of ordinary income. The Index Funds expect
that their distributions will consist primarily of capital gains.
Shareholders generally are required to report all Fund distributions on their
federal income tax returns. Each year the Funds will send shareholders
information detailing the amount of ordinary income and capital gains paid to
the shareholder for the previous year.
Taxes On Sales
If a shareholder sells shares of a Fund, the shareholder generally will be
subject to tax on any taxable gain. Taxable gain is computed by subtracting the
shareholder's tax basis in the shares from the redemption proceeds. Because a
shareholder's tax basis depends on the original purchase price and on the price
at which any dividends may have been reinvested, shareholders should be sure to
keep account statements so that they or their tax preparers will be able to
determine whether a sale will result in a taxable gain.
Other Considerations
If an investor buys shares of a Fund just before the Fund makes any
distribution, the investor will receive some of the purchase price back in the
form of a taxable distribution.
By law, the Funds must withhold a portion of a shareholder's distributions and
redemptions proceeds to pay federal income taxes if the shareholder has not
provided complete, correct taxpayer information.
14
<PAGE>
Management
- --------------------------------------------------------------------------------
Investment Advisor
Munder Capital Management ("MCM"), 480 Pierce Street, Birmingham, Michigan
48009 is the investment advisor of each Fund other than S&P 500 Index Equity
Fund, MidCap Index Equity Fund and SmallCap Index Equity Fund. World Asset
Management, ("World"), 255 East Brown Street, Birmingham, Michigan 48009, is
the investment advisor of the Index Funds. World is a wholly-owned subsidiary
of MCM. As of June 30, 1999, MCM and its affiliates had approximately $55.1
billion in assets under management, of which $30.2 billion were invested in
equity securities, $9.4 billion were invested in money market or other short-
term instruments, $9.0 billion were invested in other fixed income securities,
and $6.5 billion in non-discretionary assets. As of June 30, 1999, World had
approximately $20.4 billion in assets under management, of which $15.96 billion
were invested in domestic equity securities, $3.9 billion were invested in
international equity securities and $0.5 billion were invested in other fixed
income securities.
The advisors provide overall investment management for the Funds, provides
research and credit analysis and is responsible for all purchases and sales of
portfolio securities.
World is entitled to receive an annual fee equal to 0.07% of the average daily
net assets of the S&P 500 Index Equity Fund, and 0.15% of the average daily net
assets of the MidCap Index Equity Fund and SmallCap Index Equity Fund. MCM is
entitled to receive an annual fee equal to 0.20% of the average daily net
assets of the Short Term Treasury Fund and 0.20% of the average daily net
assets of the Money Market Fund.
The advisors may, from time to time, make payments to banks, broker-dealers or
other financial institutions for certain services to the Funds and/or their
shareholders, including sub-administration, sub-transfer agency and shareholder
servicing. The advisors may make such payments out of their own resources and
there are no additional costs to the Funds or their shareholders.
Year 2000
Like other mutual funds, financial institutions and business organizations and
individuals around the world, each Fund could be adversely affected if the
computer systems used by the advisor and the Fund's other service providers do
not properly process and calculate date-related information and data from and
after January 1, 2000. The advisor is taking steps that it believes are
reasonably designed to address year 2000 computer-related problems with respect
to the computer systems that it uses and to obtain assurances that comparable
steps are being taken by a Fund's other, major service providers. Although
there can be no assurances, the advisor believes that these steps will be
sufficient to avoid any adverse impact on any of the Funds. Similarly, the
companies and other issuers in which a Fund invests could be adversely affected
by year 2000 computer-related problems, and there can be no assurance that the
steps taken, if any, by these issuers will be sufficient to avoid any adverse
impact on a Fund.
15
<PAGE>
Appendix
- --------------------------------------------------------------------------------
Standard & Poor's Indexes
"Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", "Standard and Poor's 500", "S&P
SmallCap 600(R)", Standard & Poor's SmallCap 600", "600", "500", "S&P MidCap
400", "Standard & Poor's MidCap 400" and "400", are trademarks of McGraw-Hill
Companies, Inc. (McGraw-Hill) and have been licensed for use by the Company.
Standard and Poor's Ratings Service (S&P) is a division of McGraw-Hill.
The Funds are not sponsored, endorsed, sold or promoted by S&P. S&P makes no
representation or warranty, express or implied, to the owners of the Funds or
any member of the public regarding the advisability of investing in securities
generally or in the Funds particularly or the ability of the S&P 500 or the S&P
MidCap 400 to track general stock market performance. S&P's only relationship
to the Munder Institutional Funds is the licensing of certain trademarks and
trade names of S&P and of the indexes which are determined, composed and
calculated by S&P without regard to the Munder Institutional Funds. S&P has no
obligation to take the needs of the Company or the owners of the Funds into
consideration in determining, composing or calculating the Indexes. S&P is not
responsible for and has not participated in the determination of the prices and
amount of the Funds or the timing of the issuance or sale of the Funds or in
the determination or calculation of the equation by which the Funds are to be
converted into cash. S&P has no obligation or liability in connection with the
administration, marketing or trading of the Funds.
S&P does not guarantee the accuracy and/or the completeness of the Indexes or
any data included therein and S&P shall have no liability for any errors,
omissions, or interruptions therein. S&P makes no warranty, express or implied,
as to results to be obtained by the Munder Institutional Funds, owners of the
Funds, or any other person or entity from the use of the Indexes or any data
included therein. S&P makes no express or implied warranties, and expressly
disclaims all warranties of merchantability of fitness for a particular purpose
or use with respect to the Indexes or any data included therein. Without
limiting any of the foregoing, in no event shall S&P have any liability for any
special, punitive, indirect, or consequential damages (including lost profits),
even if notified of the possibility of such damages.
16
<PAGE>
For More Information
More information about The Munder Institutional Funds is available free upon
request, including the following:
Annual/Semi-Annual Reports
Additional information about the Index Funds' investments is available in the
Index Funds' annual and semi-annual reports to shareholders. In Index Funds'
annual report, you will find a discussion of the market conditions and
investment strategies that significantly affected the fund's performance during
its last fiscal year. You will receive unaudited semi-annual reports and audited
annual reports on a regular basis from the Funds. In addition, you will also
receive updated Prospectuses or Supplements to this Prospectus. In order to
eliminate duplicate mailings, the Funds will only send one copy of the above
communications to (1) accounts with the same primary record owner, (2) joint
tenant accounts, (3) tenant in common accounts and (4) accounts which have the
same address.
Statement of Additional Information
Provides more details about all of the funds and their policies. A current
Statement of Additional Information is on file with the Securities and Exchange
Commission and is incorporated by reference (is legally considered part of this
prospectus).
SEC file number: 811-4038
PROINSTK1099
Investment Advisor: Munder Capital Management
Distributed by: Funds Distributor, Inc.
To Obtain Information:
By telephone
Call 1-800-438-5789
By mail Write to:
The Munder Funds
480 Pierce Street
Birmingham, MI 48009
On the Internet Text-only versions of fund
documents can be viewed online or
downloaded from:
Securities and Exchange Commission
http://www.sec.gov
You can also obtain copies by visiting the
Securities and Exchange Commission's Public
Reference Room in Washington, DC (phone
1-800-SEC-0330) or by sending your request
and a duplicating fee to the Securities and
Exchange Commission's Public Reference
Section, Washington, DC 2054-6009.
<PAGE>
CLASS Y SHARES
Prospectus
O C T O B E R 8 , 1 9 9 9
THE MUNDER INSTITUTIONAL FUNDS
Institutional S&P 500 Index Equity Fund
Institutional S&P MidCap Index Equity Fund
Institutional S&P SmallCap Index Equity Fund
Institutional Short Term Treasury Fund
Institutional Money Market Fund
As with all mutual funds, the Securities
and Exchange Commission does not
guarantee that the information in this
prospectus is accurate or complete, nor
has it approved or disapproved these
securities. It is a criminal offense to
state otherwise.
<PAGE>
Table Of Contents
<TABLE>
<C> <S>
2 Risk/Return Summary
Index Funds
2 Goals and Main Investment Strategies
2 Principal Risks
3 Who May Want To Invest
4 Performance
Short Term Treasury Fund
5 Goal and Main Investment Strategies
5 Principal Risks
5 Who May Want To Invest
5 Performance
Money Market Fund
6 Goal and Main Investment Strategies
6 Principal Risks
6 Who May Want To Invest
6 Performance
7 Expenses
8 More About Munder Institutional Funds
11 Your Investment
11 How To Reach The Funds
11 Purchasing Shares
11 Redeeming Shares
11 Additional Policies for Purchases and Sales
13 Pricing of Fund Shares
13 Distributions
14 Federal Tax Considerations
14 Taxes On Distributions
14 Taxes On Sales
14 Other Considerations
15 Management
15 Investment Advisor
15 Year 2000
16 Financial Highlights
18 Appendix
</TABLE>
Back Cover For Additional Information
<PAGE>
Risk/Return Summary
- --------------------------------------------------------------------------------
This Risk/Return Summary briefly describes each of the Munder Institutional
Funds and the principal risks of investing in the Funds. For further
information on the Funds, please read the section entitled More About Munder
Institutional Funds.
An investment in a Fund is not a bank deposit and is not insured or guaranteed
by the Federal Deposit Insurance Corporation or any other governmental agency.
SmallCap Index Equity Fund
The Fund's goal is to provide price performance and income that is comparable
to the Standard & Poor's SmallCap 600 Index (S&P SmallCap 600). The S&P
SmallCap 600 is an index of 600 stocks that emphasizes small capitalization
companies.
The Fund invests primarily in stocks and it normally will hold the shares of at
least 80% of the issuers in the S&P SmallCap 600.
The Fund may also purchase foreign securities, enter into futures contracts and
lend portfolio securities, which are described below under "More About Munder
Institutional Funds."
Principal Risks
The Index Funds are subject to the following principal investment risks:
. The Index Funds will invest in the securities included in the relevant index
regardless of market trends. As a result, the Index Funds cannot modify their
investment strategies to respond to changes in the economy, which means they
may be particularly susceptible to a general decline in the stock market
segment relating to the relevant index.
. An adverse event, such as an unfavorable earnings report, may depress the
value of a particular stock held by an Index Fund.
. The share price of each Index Fund will change daily based on market
conditions and other factors; you may lose money if you invest in the Funds.
. None of the Index Funds can be certain it will achieve its investment goal.
. The MidCap Index Equity Fund and SmallCap Index Equity Fund invest in stocks
of smaller companies, which may have more risks than stocks of larger
companies. They may be more susceptible to market downturns, their prices may
be more volatile and they may be less liquid.
Index Funds
Goals And Main Investment Strategies
S&P 500 Index Equity Fund
The Fund's goal is to provide price performance and income that is comparable
to the Standard and Poor's 500 Composite Stock Price Index (S&P 500). The S&P
500 is an index of 500 stocks that emphasizes large capitalization companies.
The Fund invests primarily in stocks and it normally will hold the shares of at
least 80% of the issuers in the S&P 500.
The Fund may also purchase foreign securities, enter into futures contracts and
lend portfolio securities, which are described below under "More About Munder
Institutional Funds."
Midcap Index Equity Fund
The Fund's goal is to provide price performance and income that is comparable
to the Standard & Poor's MidCap 400 Index (S&P MidCap 400). The S&P MidCap 400
is an index of 400 stocks that emphasizes medium capitalization companies.
The Fund invests primarily in stocks and it normally will hold the shares of at
least 80% of the issuers in the S&P MidCap 400.
The Fund may also purchase foreign securities, enter into futures contracts and
lend portfolio securities, which are described below under "More About Munder
Institutional Funds."
2
<PAGE>
Investment Approach
. The advisor manages the Index
Funds through a "quantitative"
or "indexing" investment
approach, which attempts to
duplicate the investment
composition and performance of
the particular index through
statistical procedures.
. The advisor invests in stocks
that are included in the
particular index, in
approximately the same
proportions as they are
represented in the index.
. Because the Index Funds have
operating expenses and an index
does not, the Index Funds will
not be able to match the
performance of their respective
index exactly.
. The advisor attempts to track
the performance of the
particular index within a 0.95
correlation.
Who May Want To Invest
The Index Funds may be appropriate for investors:
. Looking to invest over the long term.
. Able to ride out market swings.
. Looking to invest in a diversified stock portfolio focused on a particular
stock market segment.
None of the Index Funds alone provides a balanced investment program.
3
<PAGE>
Performance
The chart and table below give some indication of the variability of the S&P
500 Index Equity Fund's returns by showing calendar year to year changes in the
S&P 500 Index Equity Fund's performance and the risk of an investment in the
S&P 500 Index Equity Fund by comparing the Fund's performance with a broad
measure of market performance. Both the MidCap Index Equity Fund and SmallCap
Index Equity Fund do not have a full calendar year of investment returns at the
date of this prospectus. For this reason, no performance information for those
Funds is provided in this prospectus.
When you consider this information, please remember the Fund's performance in
past years is not necessarily an indication of how the Fund will do in the
future.
S&P 500 Index Equity Fund
Total Return
(per calendar year)
[TABLE APPEARS HERE]
40% 30% 20% 10% 0%
28.22% 1998
<TABLE>
<CAPTION>
Highest and Lowest Return
(1998)
------------------
Quarter Ending
------------------
<S> <C> <C>
Highest 21.17% December 31, 1998
------------------
Lowest -9.94% September 30, 1998
</TABLE>
<TABLE>
<CAPTION>
Average Annual Total Returns
(through December 31, 1998)
------------------------
Life of Fund
1 Year (since 10/14/97)
------------------------
<S> <C> <C>
S&P 500 Index
Equity Fund 28.22% 23.06%
------------------------
S&P 500 Compos-
ite Index 28.57% 23.39%
</TABLE>
4
<PAGE>
Short Term Treasury Fund
Goal And Main Investment Strategies
The Fund's goal is to provide investors with a high level of current income
consistent with the preservation of capital.
The Fund invests in U.S. Treasury securities and repurchase agreements fully
collateralized by U.S. Treasury securities. The Fund will purchase U.S.
Treasury securities with remaining maturities of three years or less. The
Fund's dollar weighted average maturity usually will not exceed two years.
The Fund may also engage in short-term trading and securities lending, which
are described below under "More About Munder Institutional Funds."
Principal Risks
The Fund is subject to the following principal investment risks:
. In general, prices of U.S. Treasury securities, like other fixed income
securities, fall when interest rates rise.
. Generally, the longer the average maturity of the securities in the Fund, the
more the Fund's share price will fluctuate in response to interest rate
changes.
. The share price of the Fund will change daily based on economic and market
conditions, interest rates and other factors.
. The Fund is not a money market fund and although it seeks to maintain minimum
fluctuation of principal value, you may lose money if you invest in the Fund.
. The Fund cannot be certain it will achieve its investment goal.
Who May Want To Invest
The Fund may be appropriate for investors who desire a high level of income,
liquidity and stability of principal.
The Fund alone does not provide a balanced investment program.
Performance
The Fund had not commenced operations as of the date of this Prospectus and,
therefore, has no performance information to report.
5
<PAGE>
Money Market Fund
Goal And Main Investment Strategies
The Fund's goal is to provide as high a level of current interest income as is
consistent with maintaining liquidity and stability of principal.
The Fund invests in U.S. dollar-denominated money market securities, including
U.S. Government securities, bank obligations, commercial paper and repurchase
agreements.
The Fund may also invest in foreign securities, guaranteed investment
contracts, and asset-backed securities, and engage in securities lending, which
are described below under "More About Munder Institutional Funds."
Principal Risks
The Fund is subject to the following principal investment risks:
. The rate of income will vary from day to day, depending on short-term
interest rates.
. The Fund may invest more than 25% of its assets in the banking industry.
Concentrating investments in the banking industry may involve additional
risk. Banks are subject to extensive government regulation that may limit
their operations. They largely depend on the availability and cost of capital
funds for their profitability, which can change significantly when interest
rates change.
. Although the Fund seeks to preserve the value of your investment at $1.00 per
share, it is possible you may lose money by investing in the Fund. For
example, a major change in interest rates or a default on a security or a
repurchase agreement could cause the value of your investment to decline.
. The Fund cannot be certain it will achieve its goal.
Who May Want To Invest
The Fund may be appropriate for investors who desire a high level of current
income, liquidity and stability of principal.
The Fund alone does not provide a balanced investment program.
Performance
The Fund does not have a full calendar year of investment returns at the date
of the Prospectus and, therefore, no performance information has been provided.
6
<PAGE>
Expenses
The table below describes the fees and expenses that you may pay if you buy and
hold Class Y shares of the Munder Institutional Funds. Please note the
following information does not include fees that institutions may charge for
services they provide to you.
<TABLE>
<CAPTION>
Shareholder Fees
(fees paid directly from your investment)
- -----------------------------------------
<S> <C>
Maximum Sales Charge (Load) Imposed on Purchase............................ None
Sales Charge (Load) Imposed on Reinvested Dividends........................ None
Maximum Deferred Sales Charge (Load)....................................... None
Redemption Fees............................................................ None
Exchange Fees.............................................................. None
</TABLE>
<TABLE>
<CAPTION>
Annual Fund Operating
Expenses (expenses that
are paid from Fund S&P 500 MidCap SmallCap Short Term Money
assets) as a % of net Index Equity Index Equity Index Equity Treasury Market
assets Fund Fund Fund Fund Fund
- ----------------------- ------------ ------------ ------------ ---------- ------
<S> <C> <C> <C> <C> <C>
Management Fees(1)...... .07% .15% 0.15% .20% .20%
Other Expenses(1)....... .25% .73% 4.43% .55% .18%
--- --- ----- --- ---
Total Annual Fund Oper-
ating Expenses(1)...... .32% .88% 4.58% .75% .38%
=== === ===== === ===
</TABLE>
- --------
(1) The advisor has voluntarily agreed to waive the management fees for the S&P
500 Index Equity Fund, MidCap Index Equity Fund and SmallCap Index Equity
Fund and to reimburse the Funds' operating expenses to keep the Funds'
other expenses at specified levels, as set forth below. The advisor may
eliminate all or part of the fee waiver and/or expense reimbursement at any
time. Because of the fee waiver and expense reimbursement, the actual
management fees, other operating expenses and total annual fund operating
expense for the last fiscal year were: .00%, .09% and .09%, respectively,
for the S&P 500 Index Equity Fund, .00%, .18% and .18%, respectively, for
the MidCap Index Equity Fund and .00%, .18% and .18%, respectively, for the
SmallCap Index Equity Fund. Because of the expense reimbursement, it is
estimated that other operating expenses and total annual fund operating
expenses for the current fiscal year will be: .03% and .23%, respectively,
for the Short Term Treasury Fund and .00% and .20%, respectively, for the
Money Market Fund.
Example
This example is intended to help you compare the cost of investing in the
Munder Institutional Funds to the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in a Fund for the time periods
indicated and then sell all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year, that the
Fund's operating expenses remain the same as shown in the table above and that
all dividends and distributions are reinvested. Although your actual costs and
the return on your investment may be higher or lower, based on these
assumptions your costs would be:
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
S&P 500 Index Equity Fund....................... $ 33 $ 103 $ 180 $ 408
MidCap Index Equity Fund........................ $ 90 $ 281 $ 489 $1,089
SmallCap Index Equity Fund...................... $462 $1,390 $2,326 $4,698
Short Term Treasury Fund........................ $ 77 $ 240 -- --
Money Market Fund............................... $ 39 $ 122 -- --
</TABLE>
7
<PAGE>
More About Munder Institutional Funds
- --------------------------------------------------------------------------------
Index Funds
The Funds' main strategies and risks are summarized above in the section
entitled Risk/Return Summary-Index Funds. Below is further information about
the Funds' principal investments. The Funds may also use strategies and invest
in securities described in the Statement of Additional Information.
Equity Securities The Funds invest in equity securities which include common
stocks, preferred stocks, convertible preferred stocks and warrants or rights
to subscribe for or purchase such securities. Securities considered for
purchase by the Index Funds may be listed or unlisted.
Foreign Securities Each Fund may invest in foreign securities, which include
securities issued by foreign companies and foreign governments and their
agencies, instrumentalities or political subdivisions and supranational
organizations. Investments by each Fund in foreign securities involve risks in
addition to those of U.S. securities. Foreign securities are generally more
volatile and less liquid than U.S. securities, in part because of higher
political and economic risks and because there is less public information
available about foreign companies. Also, a decline in the value of foreign
currencies relative to the U.S. dollar will reduce the value of securities
denominated in those currencies.
Futures Contracts Each Fund may, but is not required to, use futures contracts
which are a type of derivative. A derivative is a financial contract whose
value is based on a security, an asset or a market index. The main risk with
derivatives is that some types can amplify a gain or loss, potentially earning
or losing substantially more money than the actual cost of the derivative. With
some derivatives, there is also the risk that the other party to the contract
may fail to honor its obligations, causing a loss for the Fund. The Funds will
not use derivatives for speculative purposes. Rather, each Fund will use
futures contracts to gain exposure to its index for its cash balances.
Securities Lending Each Fund may seek additional income by lending portfolio
securities to qualified institutions. By reinvesting any cash collateral it
receives in these transactions, the Fund could realize additional gains or
losses. If the borrower fails to return the securities and the invested
collateral has declined in value, the Fund could lose money.
Portfolio Managers
Kenneth A. Schluchter III and Darin McBride jointly manage the S&P 500 Index
Equity Fund and jointly manage the MidCap Index Equity Fund. Mr. Schluchter and
Mark Drouse jointly manage the SmallCap Index Equity Fund.
Mr. Schluchter, Director of Domestic Investments of the advisor, has managed
the Funds since their inception. He was previously a systems developer and data
analyst for Compuware Incorporated (1993-1995).
Mr. McBride, a portfolio manager of the advisor, has also managed the S&P 500
Index Equity Fund and the MidCap Index Equity Fund since their inception.
Previously, Mr. McBride was a portfolio research analyst at Flexible Plan
Investments, Ltd. (1995-1997) and an account executive at Ryder Systems, Inc.
(1993-1994).
Mr. Drouse has managed the SmallCap Index Equity Fund since its inception,
utilizing his systems experience in quantitative investment management.
Previously, he was a portfolio analyst for the advisor (1996-1997), a systems
administrator for Munder Capital Management (1995-1996) and a WAN network
administrator for Comerica Bank (1993-1995).
Short Term Treasury Fund
The Fund's main strategies and risks are summarized above in the section
entitled Risk/Return Summary-Short Term Treasury Fund. Below is further
information about the Fund's principal investments. The Fund may also use
strategies and invest in securities described in the Statement of Additional
Information.
U.S. Treasury Securities Securities purchased by the Fund are direct
obligations of the U.S. Treasury and are guaranteed by the full faith and
credit of the
8
<PAGE>
U.S. Government. These securities consist of U.S. Treasury bills and U.S.
Treasury notes. U.S. Treasury securities differ in their interest rates,
maturities and times of issuance. Treasury bills have initial maturities of one
year or less and Treasury notes have initial maturities of one to ten years.
A portion of the U.S. Treasury Securities purchased by the Fund may be zero
coupon securities. These are U.S. Treasury notes which have been stripped of
their unmatured interest coupons and receipts. These securities are issued at a
discount from their face value because interest payments are typically
postponed until maturity. Zero coupon U.S. Treasury securities are generally
more sensitive to interest rate changes than are comparable debt securities
that make current distributions of interest.
Repurchase Agreements The Fund may buy U.S. Treasury securities from financial
institutions with the understanding that the seller will buy them back with
interest at a later date. If the seller is unable to honor its commitment to
repurchase the securities, the Fund could lose money.
Short Term Trading The Fund may engage in active and frequent trading to
achieve its investment goal. Frequent trading may increase transaction costs,
which could detract from the Fund's performance, and may increase your tax
liability.
Securities Lending The Fund may seek additional income by lending portfolio
securities to qualified institutions. By reinvesting any cash collateral it
receives in these transactions, the Fund could realize additional gains or
losses. If the borrower fails to return the securities and the invested
collateral has declined in value, the Fund could lose money.
Portfolio Manager
Sharon E. Fayolle manages the Fund. Ms. Fayolle has been Vice President and
Director of Money Market Trading for the advisor since 1996. Prior to that she
managed an international portfolio for Ford Motor Company.
Money Market Fund
The Fund's main strategies and risks are summarized above in the section
entitled Risk/Return Summary-Money Market Fund. Below is further information
about the Fund's principal investments. The Fund may also use strategies and
invest in securities described in the Statement of Additional Information.
The Fund has specific investment policies and procedures designed to maintain a
constant $1.00 net asset value per share. The Fund complies with rules of the
Securities and Exchange Commission, which impose certain liquidity, maturity
and diversification requirements. The Fund's investments must have remaining
maturities of 397 days or less and the average maturity of the Fund's
investments must be 90 days or less.
Money Market Securities The Fund invests in money market securities, which are
high quality, short-term debt securities that pay a fixed, variable or floating
rate of interest. Securities are often specifically structured so that they are
eligible investments for a money market fund. For example, in order to satisfy
the maturity restrictions for a money market fund, some money market securities
have demand or put features which have the effect of shortening the security's
maturity. Money market securities include certificates of deposit, bankers'
acceptances, bank time deposits, notes, commercial paper and U.S. Government
securities.
U.S. Government Securities The Fund invests in U.S. Government securities,
which are high-quality securities issued or guaranteed by the U.S. Treasury or
by an agency or instrumentality of the U.S. Government. U.S. Government
securities may be backed by the full faith and credit of the U.S. Treasury, the
right to borrow from the U.S. Treasury, or the agency or instrumentality
issuing or guaranteeing the security.
Foreign Securities The Fund may invest in U.S. dollar denominated money market
securities of foreign issuers, which include securities issued by foreign
companies and foreign governments and their agencies, instrumentalities or
political subdivisions and supranational organizations. Investments by the Fund
in foreign securities involve risks in addition to those of U.S. securities.
Foreign securities are generally more volatile and less liquid than U.S.
securities, in part because of higher political and economic risks and because
there is less public information available about foreign companies.
9
<PAGE>
Repurchase Agreements The Fund may buy securities with the understanding that
the seller will buy them back with interest at a later date. If the seller is
unable to honor its commitment to repurchase the securities, the Fund could
lose money.
Guaranteed Investment Contracts The Fund invests in guaranteed investment
contracts. Guaranteed investment contracts are agreements of the Fund to make
payments, generally to an insurance company's general account, in exchange for
a minimum level of interest based on an index. Guaranteed investment contracts
are considered illiquid investments and are acquired subject to the Fund's
limitation on illiquid investments.
Asset-Backed Securities Subject to applicable maturity and credit criteria, the
Fund may purchase securities backed by mortgages, installment sales contracts,
credit card receivables or other assets. Mortgage-backed securities carry
additional risks. The price and yield of these securities typically assume that
the securities will be redeemed at a given time before maturity. When interest
rates fall substantially, these securities are generally redeemed early because
the underlying mortgages are often prepaid. In that case the Fund would have to
reinvest the money at a lower rate. In addition, the price or yield of
mortgage-backed securities may fall if they are redeemed later than expected.
Variable and Floating Rate Securities Variable and floating rate securities
have interest rates that are periodically adjusted either at set intervals or
that float at a margin above a generally recognized index rate. These
securities exhibit greater price variations than fixed-rate securities.
Securities Lending The Fund may seek additional income by lending portfolio
securities to qualified institutions. By reinvesting any cash collateral it
receives in these transactions, the Fund could realize additional gains or
losses. If the borrower fails to return the securities and the invested
collateral has declined in value, the Fund could lose money.
10
<PAGE>
Your Investment
- --------------------------------------------------------------------------------
This section describes how to do business with the Munder Institutional Funds.
How To Reach The Funds
By telephone:
1-800-438-5789
Call for account information
By mail: The Munder Funds
480 Pierce Street
Birmingham, MI 48009
Purchasing Shares
Who May Purchase Shares
The following persons may purchase shares of the Funds:
. fiduciary and discretionary accounts of institutions
. high net worth individuals
. institutional investors (including: banks, savings institutions, credit
unions and other financial institutions, corporations, foundations,
partnerships, pension and profit sharing and employee benefit plans and
trusts and insurance companies, investment companies, investment advisors and
broker-dealers acting for their own accounts or for the accounts of their
clients).
How To Purchase Shares
The minimum initial investment for each fund is as follows:
<TABLE>
<S> <C>
. S&P 500 Index Equity
Fund $ 3,000,000
- ----------------------------------------
. MidCap Index Equity
Fund and SmallCap Index
Equity Fund $1,000
- ----------------------------------------
. Short Term Treasury
Fund and Money Market
Fund $10,000,000
</TABLE>
There is no minimum for additional investments.
Shares of the Funds are sold at the net asset value per share (NAV) next
determined after a purchase order is received.
Investors may purchase shares directly through the distributor or the transfer
agent or through arrangements with institutions. Purchase orders must be
received by the distributor or the transfer agent before the close of regular
trading on the New York Stock Exchange (normally, 4:00 p.m. Eastern time).
Investors may pay for shares in federal funds or other funds that are
immediately available to the Funds' sub-custodian by no later than 4:00 p.m.
(Eastern time) on the next business day following receipt of the purchase
order. Institutions acting on an investor's behalf are responsible for
transmitting orders and funds by the deadline. If you purchase shares through
an institution, the institution may charge for its services.
Redeeming Shares
How To Redeem Shares
Redemption requests are effected at the NAV next determined after the transfer
agent receives the order.
Shares held by an institution on behalf of its customers must be redeemed in
accordance with instructions and limitations pertaining to the account at that
institution.
The transfer agent may charge a fee of $7.50 for wire redemptions under $5,000.
If we receive a redemption order before 4:00 p.m. (Eastern time), we will
normally wire payment to the redeeming institution on the next business day.
Additional Policies For Purchases And Sales
. All orders to purchase shares are subject to acceptance by the Funds.
. At any time, the Funds may change any of its order acceptance practices, and
may suspend the sale of its shares.
. The Funds may delay sending redemption proceeds for up to seven days, or
longer if permitted by the Securities and Exchange Commission.
11
<PAGE>
. To limit Fund expenses, we do not issue share certificates.
. A Fund may temporarily stop redeeming shares if:
. the New York Stock Exchange is closed;
. trading on the New York Stock Exchange is restricted;
. an emergency exists and the Fund cannot sell its assets or accurately
determine the value of its assets.
. If accepted by the Fund, investors may purchase shares of a Fund with
securities they own. The advisor will determine if the securities are
consistent with the Fund's objectives and policies. If accepted, the
securities will be valued the same way the Fund values portfolio securities
it already owns. Call 1-800-438-5789 for more information.
. The Funds reserve the right to make payment for redeemed shares wholly or in
part by giving the redeeming shareholder portfolio securities. The
shareholder may pay transaction costs to dispose of these securities.
. As long as the Funds take reasonable measures to authenticate telephone
requests on an investor's account, neither the Funds, the distributor nor the
transfer agent will be held responsible for unauthorized transactions.
12
<PAGE>
Pricing Of Fund Shares
- --------------------------------------------------------------------------------
Each Fund's NAV is calculated on each day the New York Stock Exchange is open.
NAV is the value of a single share of a Fund. NAV is calculated by (1) taking
the current market value of a Fund's total assets, (2) subtracting the
liabilities and (3) dividing that amount by the total number of shares owned by
shareholders.
Index Funds And Short Term Treasury Fund
The Funds calculate NAV as of the close of business on the New York Stock
Exchange, normally 4:00 p.m. Eastern time. If the New York Stock Exchange
closes early, the Funds will accelerate their calculation of NAV and
transaction deadlines to that time.
Each Fund generally values the securities held in the Fund based on market
quotations and valuations provided by independent pricing services. If
quotations are not readily available or if the advisor believes that events
occurring after the close of a foreign exchange have rendered the quotations
unreliable, the Fund may use fair-value estimates instead. A Fund that uses
fair value to price securities may value those securities higher or lower than
a fund that uses market quotations.
Foreign securities are valued based on quotations from the primary market in
which they are traded, and are converted from the local currency into U.S.
dollars using current exchange rates. Foreign securities may trade in their
primary markets on weekends or other days when the Fund does not price its
shares. Therefore, the value of the portfolio of a Fund holding foreign
securities may change on days when shareholders will not be able to buy or sell
their shares.
Money Market Fund
The Money Market Fund calculates NAV as of 3:00 p.m. Eastern time and as of the
close of the New York Stock Exchange, normally 4:00 p.m., Eastern time. In
determining the Money Market Fund's NAV, securities are valued at amortized
cost, which is approximately equal to market value. If the New York Stock
Exchange closes early, the Fund will accelerate its calculation of NAV and
transaction deadlines to that time.
Distributions
- --------------------------------------------------------------------------------
Shareholders are entitled to their share of a Fund's net income and gains on
its investments. Each Fund passes substantially all of its earnings along to
its shareholders as distributions. When a Fund earns dividends from stocks and
interest from debt securities and distributes these earnings to shareholders,
it is called a dividend distribution. A Fund realizes capital gains when it
sells securities for a higher price than it paid. When these gains are
distributed to shareholders, it is called a capital gain distribution. Dividend
distributions may be made several times a year, while capital gain
distributions are generally made on an annual basis.
Index Funds
These Funds pay dividends quarterly.
Short Term Treasury Fund
This Fund pays dividends monthly.
Money Market Fund
Dividend distributions are declared daily and paid monthly. If a purchase order
is accepted by 3:00 p.m. Eastern time, the investor will receive dividends for
that day. If a redemption order is received before 3:00 p.m. Eastern time, the
redeeming shareholder will not receive dividends for that day.
All Funds
Shareholders will receive distributions from a Fund in additional shares of
that Fund unless they elect to receive distributions in cash.
13
<PAGE>
Federal Tax Considerations
- --------------------------------------------------------------------------------
Investments in a Fund will have tax consequences that investors should
consider. This section describes some of the more common federal tax
consequences, but investors should consult their tax adviser about the
investor's own particular situation.
Taxes On Distributions
Shareholders will generally have to pay federal income tax on all Fund
distributions. Distributions will be taxed in the same manner whether the
shareholder receives the distributions in cash or additional shares of the
Fund. Distributions that are derived from net long-term capital gains generally
will be taxed as long-term capital gains. Dividend distributions and short-term
capital gains generally will be taxed as ordinary income. The tax a shareholder
pays on a given capital gains distribution generally depends on how long the
Fund held the portfolio securities it sold. It does not depend on how long the
shareholder held the Fund shares.
The Money Market Fund and the Short Term Treasury Fund expect that their
distributions will consist primarily of ordinary income. The Index Funds expect
that their distributions will consist primarily of capital gains.
Shareholders generally are required to report all Fund distributions on their
federal income tax returns. Each year the Funds will send shareholders
information detailing the amount of ordinary income and capital gains paid to
the shareholder for the previous year.
Taxes On Sales
If a shareholder sells shares of a Fund, the shareholder generally will be
subject to tax on any taxable gain. Taxable gain is computed by subtracting the
shareholder's tax basis in the shares from the redemption proceeds. Because a
shareholder's tax basis depends on the original purchase price and on the price
at which any dividends may have been reinvested, shareholders should be sure to
keep account statements so that they or their tax preparers will be able to
determine whether a sale will result in a taxable gain.
Other Considerations
If an investor buys shares of a Fund just before the Fund makes any
distribution, the investor will receive some of the purchase price back in the
form of a taxable distribution.
By law, the Funds must withhold a portion of a shareholder's distributions and
redemptions proceeds to pay federal income taxes if the shareholder has not
provided complete, correct taxpayer information.
14
<PAGE>
Management
- --------------------------------------------------------------------------------
Investment Advisor
Munder Capital Management ("MCM"), 480 Pierce Street, Birmingham, Michigan
48009 is the investment advisor of each Fund other than S&P 500 Index Equity
Fund, MidCap Index Equity Fund and SmallCap Index Equity Fund. World Asset
Management, ("World"), 255 East Brown Street, Birmingham, Michigan 48009, is
the investment advisor of the Index Funds. World is a wholly-owned subsidiary
of MCM. As of June 30, 1999, MCM and its affiliates had approximately $55.1
billion in assets under management, of which $30.2 were invested in equity
securities, $9.4 billion were invested in money market or other short-term
instruments, $9.0 billion were invested in other fixed income securities, and
$6.5 billion in non-discretionary assets. As of June 30, 1999, World had
approximately $20.4 billion in assets under management, of which $15.96 billion
were invested in domestic equity securities, $3.9 billion were invested in
international equity securities and $0.5 billion were invested in other fixed
income securities.
The advisors provide overall investment management for the Funds, provides
research and credit analysis and is responsible for all purchases and sales of
portfolio securities.
For the fiscal year ended December 31, 1998, the S&P 500 Index Equity Fund paid
the advisor a fee equal to 0.00% of its average daily net assets. Because the
advisor agreed to reimburse certain of the Fund's expenses, the payment was
less than the Fund's contractual advisory fee of 0.07% of its average daily net
assets. The advisor may discontinue or change its voluntary reimbursement at
any time. The advisors are entitled to receive an annual fee equal to 0.15% of
the average daily net assets of the MidCap Index Equity Fund and SmallCap Index
Equity Fund,0.20% of the average daily net assets of the Short Term Treasury
Fund and 0.20% of the average daily net assets of the Money Market Fund.
The advisors may, from time to time, make payments to banks, broker-dealers or
other financial institutions for certain services to the Funds and/or their
shareholders, including sub-administration, sub-transfer agency and shareholder
servicing. The advisors may make such payments out of their own resources and
there are no additional costs to the Funds or their shareholders.
Year 2000
Like other mutual funds, financial institutions and business organizations and
individuals around the world, each Fund could be adversely affected if the
computer systems used by the advisor and the Fund's other service providers do
not properly process and calculate date-related information and data from and
after January 1, 2000. The advisor is taking steps that it believes are
reasonably designed to address year 2000 computer-related problems with respect
to the computer systems that it uses and to obtain assurances that comparable
steps are being taken by a Fund's other, major service providers. Although
there can be no assurances, the advisor believes that these steps will be
sufficient to avoid any adverse impact on any of the Funds. Similarly, the
companies and other issuers in which a Fund invests could be adversely affected
by year 2000 computer-related problems, and there can be no assurance that the
steps taken, if any, by these issuers will be sufficient to avoid any adverse
impact on a Fund.
15
<PAGE>
Financial Highlights
- --------------------------------------------------------------------------------
The financial highlights table is intended to help shareholders understand the
Funds' financial performance for the period of the Funds' operations. Certain
information reflects financial results for a single Fund share. The total
returns in the table represent the rate that an investor would have earned on
an investment in the Fund (assuming reinvestment of all dividends and
distributions). The Money Market Fund commenced operations on January 4, 1999.
As of the date of this Prospectus, the Short Term Treasury Fund has not
commenced operations. The information has been audited by Ernst & Young LLP,
whose report along with the Funds' financial statements, are included in the
annual report, which is available upon request.
<TABLE>
<CAPTION>
MidCap
Index
S&P 500 Index Equity
Equity Fund (a) Fund (a)
------------------- ---------
Year Period Period
Ended Ended Ended
12/31/98 12/31/97 12/31/98
-------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of period........ $ 10.00 $ 10.00 $ 10.00
------- ------- -------
Income from investment operations:
Net investment income....................... 0.17 0.04 0.11
Net realized and unrealized gain on invest-
ments...................................... 2.63 0.00(d) 1.34
------- ------- -------
Total from investment operations............ 2.80 0.04 1.45
------- ------- -------
Less distributions:
Distributions from net investment income.... (0.17) (0.04) (0.11)
------- ------- -------
Distributions from net realized gains....... (0.14) -- (0.26)
------- ------- -------
Total distributions......................... (0.31) (0.04) (0.37)
------- ------- -------
Net asset value, end of period.............. $ 12.49 $ 10.00 $ 11.08
======= ======= =======
Total return (b)............................ 28.22% 0.39% 15.04%
======= ======= =======
Ratios to average net assets/supplemental
data:
Net assets, end of period (in 000's)........ $69,032 $63,999 $10,853
Ratio of operating expenses to average net
assets..................................... 0.09% 0.09%(c) 0.18%(c)
Ratio of net investment income to average
net assets................................. 1.44% 1.76%(c) 1.20%(c)
Ratio of operating expenses to average net
assets
without expenses reimbursed................ 0.32% 0.61%(c) 0.88%(c)
Portfolio turnover.......................... 6% 0% 37%
</TABLE>
- --------
(a) Munder Institutional S&P 500 Index Equity Fund commenced operations on
October 14, 1997. Munder Institutional S&P MidCap Index Equity Fund
commenced operations on February 12, 1998.
(b) Total return represents aggregate total return for the period indicated.
(c) Annualized.
(d) The amount shown at this caption for each share outstanding throughout the
period, may not accord with the change in aggregate gains and losses in the
portfolio securities for the period, because of the timing of purchases and
withdrawals of shares in relation to the fluctuating market values of the
portfolio.
16
<PAGE>
<TABLE>
<CAPTION>
SmallCap Index
Equity Fund
--------------------------
Year Period
Ended Ended
12/31/98(b) 12/31/97(a)
----------- -----------
<S> <C> <C>
Net asset value, beginning of period............... $10.23 $10.00
------ ------
Income from investment operations:
Net investment income.............................. 0.02 0.04
Net realized and unrealized gain on investments.... 0.84 0.26
------ ------
Total from investment operations................... 0.86 0.30
------ ------
Less distributions:
Distributions from net investment income........... -- (0.04)
Distributions from net realized gains.............. (0.04) (0.03)
------ ------
Total distributions................................ (0.04) (0.07)
------ ------
Net asset value, end of period..................... $11.05 (d) $10.23
====== ======
Total return (c)................................... 8.41 % 3.00 %
====== ======
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's)............... $ -- $2,559
Ratio of operating expenses to average net assets.. 0.18 (c) 0.18 %(e)
Ratio of net investment income to average net as-
sets.............................................. 0.52 (e) 0.80 (f)
Ratio of operating expenses to average net assets
without expenses reimbursed....................... 4.53 %(e) 3.88 (f)
Portfolio turnover................................. 17 % 8 %
</TABLE>
- --------
(a) The Munder Institutional SmallCap Index Equity Fund commenced operations on
August 7, 1997.
(b) The Munder Institutional SmallCap Index Equity Fund ceased investment
operations on May 18, 1998.
(c) Total return represents aggregate total return for the period indicated.
(d) Reflects the net asset value on May 18, 1998.
(e) Annualized based on the activity of the Fund through May 18, 1998.
(f) Annualized.
17
<PAGE>
Appendix
- --------------------------------------------------------------------------------
Standard & Poor's Indexes
"Standard & Poor's(R)", "S&P(R)", "S&P 500(R)", "Standard and Poor's 500",
"500", "S&P SmallCap 600(R)", "Standard & Poor's SmallCap 600", "600", "S&P
MidCap 400", "Standard & Poor's MidCap 400" and "400", are trademarks of
McGraw-Hill Companies, Inc. (McGraw-Hill) and have been licensed for use by the
Company. Standard and Poor's Ratings Service (S&P) is a division of McGraw-
Hill.
The Funds are not sponsored, endorsed, sold or promoted by S&P. S&P makes no
representation or warranty, express or implied, to the owners of the Funds or
any member of the public regarding the advisability of investing in securities
generally or in the Funds particularly or the ability of the S&P 500 or the S&P
MidCap 400 to track general stock market performance. S&P's only relationship
to the Munder Institutional Funds is the licensing of certain trademarks and
trade names of S&P and of the indexes which are determined, composed and
calculated by S&P without regard to the Munder Institutional Funds. S&P has no
obligation to take the needs of the Company or the owners of the Funds into
consideration in determining, composing or calculating the Indexes. S&P is not
responsible for and has not participated in the determination of the prices and
amount of the Funds or the timing of the issuance or sale of the Funds or in
the determination or calculation of the equation by which the Funds are to be
converted into cash. S&P has no obligation or liability in connection with the
administration, marketing or trading of the Funds.
S&P does not guarantee the accuracy and/or the completeness of the Indexes or
any data included therein and S&P shall have no liability for any errors,
omissions, or interruptions therein. S&P makes no warranty, express or implied,
as to results to be obtained by the Munder Institutional Funds, owners of the
Funds, or any other person or entity from the use of the Indexes or any data
included therein. S&P makes no express or implied warranties, and expressly
disclaims all warranties of merchantability of fitness for a particular purpose
or use with respect to the Indexes or any data included therein. Without
limiting any of the foregoing, in no event shall S&P have any liability for any
special, punitive, indirect, or consequential damages (including lost profits),
even if notified of the possibility of such damages.
18
<PAGE>
For More Information
More information about The Munder Institutional Funds is available free upon
request, including the following:
Annual/Semi-Annual Reports
Additional information about the Index Funds' investments is available in the
Index Funds' annual and semi-annual reports to shareholders. In the Index Funds'
annual report, you will find a discussion of the market conditions and
investment strategies that significantly affected the fund's performance during
its last fiscal year. You will receive unaudited semi-annual reports and audited
annual reports on a regular basis from the Funds. In addition, you will also
receive updated Prospectuses or Supplements to this Prospectus. In order to
eliminate duplicate mailings, the Funds will only send one copy of the above
communications to (1) accounts with the same primary record owner, (2) joint
tenant accounts, (3) tenant in common accounts and (4) accounts which have the
same address.
Statement of Additional Information
Provides more details about all of the funds and their policies. A current
Statement of Additional Information is on file with the Securities and Exchange
Commission and is incorporated by reference (is legally considered part of this
prospectus).
SEC file number: 811-4038
PROINSTY1099
Investment Advisor: Munder Capital Management
Distributed by: Funds Distributor, Inc.
To Obtain Information:
By telephone
Call 1-800-438-5789
By mail Write to:
The Munder Funds
480 Pierce Street
Birmingham, MI 48009
On the Internet Text-only versions of fund
documents can be viewed online or
downloaded from:
Securities and Exchange Commission
http://www.sec.gov
You can also obtain copies by visiting the
Securities and Exchange Commission's Public
Reference Room in Washington, DC (phone
1-800-SEC-0330) or by sending your request
and a duplicating fee to the Securities and
Exchange Commission's Public Reference
Section, Washington, DC 2054-6009.
