Flagship Tax Exempt Funds Trust
All references to the effective date of this
Prospectus or the Statement of Additional Information
referred to in this Prospectus are hereby changed to
February 3, 1995. Flagship Tax Exempt Funds Trust has
proposed acquiring Flagship Pennsylvania Triple Tax
Exempt Fund ("Old Pennsylvania") as a sub-trust. The
Trustees of the Trust proposed that Flagship
Massachusetts Double Tax Exempt Fund be renamed Flagship
Pennsylvania Triple Tax Exempt Fund and acquire all the
assets and liabilities of Old Pennsylvania in return for
shares of New Pennsylvania at net asset value to reflect
the same number of shares held at the then current net
asset value per share as held by shareholders of Old
Pennsylvania, if approved by shareholders of Old
Pennsylvania. A special meeting of shareholders has been
called for April 21, 1995 to consider the acquisition and
other matters with all shareholders of record of Old
Pennsylvania on February 22, 1995 entitled to vote.
Flagship Pennsylvania Triple Tax Exempt series ("New
Pennsylvania") is not currently offering shares.
References to Flagship Pennsylvania Triple Tax Exempt
Fund on page 1 of the Prospectus are hereby deleted. The
first two sentences of the Prospectus are revised to read
as follows:
Flagship Tax Exempt Funds Trust (the "Trust") is an open-
end, management investment company. In this Prospectus
all references to the Fund or a series or series of the
Fund refer to the Trust and its series.
"The Fund and Its Objective," is revised to delete
references to Flagship Pennsylvania Triple Tax Exempt
Fund as follows. The first paragraph on page 8 of the
Prospectus now reads:
Flagship Tax Exempt Funds Trust (the "Trust") is an open-
end management investment company which is professionally
managed. The Trust consists of a number of series, each
of which is actively managed independent of each other
series. The diversified series are marked with an
asterisk in "Fees and Expenses" above. All other series
are non-diversified. Each non-diversified series of the
Fund will be able to invest, subject to certain Federal
tax requirements, a relatively high percentage of its
assets in the securities of a limited number of issuers
which may result in such series' securities being more
susceptible to any single economic, political or
regulatory occurrence than the securities of a
diversified series. In this Prospectus all references to
a series or the series of the Fund or the Fund refer to
the Trust and its series.
"Economic Data and Tax Considerations -- Pennsylvania" on
page 23 of the Prospectus, under "Tax Considerations" is
revised to read "Fund", instead of "Pennsylvania Fund".
"About the Investment Manager," on page 27 of the
Prospectus is hereby revised as follows: The statement
",including the Pennsylvania Fund" at the end of the
first sentence is hereby deleted.
"General Information--Description of Shares" on page 29
is revised to delete references to the Pennsylvania Fund
as a separate legal entity as follows:
The first sentence is revised by deleting ",and the
Pennsylvania Fund is an unincorporated trust established
under the laws of the Commonwealth of Pennsylvania by a
Declaration of Trust dated July 21, 1986." The second
sentence is deleted. The third sentence of paragraph two
is deleted. The fourth paragraph is revised as follows:
Shareholders of the Trust have certain rights, as set
forth in its Declaration of Trust, including the right to
call a meeting of shareholders for the purpose of
electing Trustees or voting on the removal of one or more
Trustees. Such removal can be effected upon the action
of two-thirds of the outstanding shares of beneficial
interest of the Trust. The final paragraph is revised to
delete references to the Pennsylvania Fund as follows:
The Trustees of the Trust may amend its Declaration of
Trust (including with respect to any series) in any
manner without shareholder approval, except that the
Trustees of the Trust may not adopt any amendment
adversely affecting the rights of shareholders of any of
its series without approval by a majority of the shares
of each affected series present at a meeting of
shareholders (or such higher vote as may be required by
the 1940 Act or other applicable law) and except that the
Trustees of the Trust cannot amend the Declaration of
Trust to impose any liability on shareholders, make any
assessments on shares or impose liabilities on the
Trustees without approval from each affected shareholder
or Trustee, as the case may be.
"Counsel and Auditors" on page 30 of the Prospectus is
revised as follows: The statement "and the Pennsylvania
Fund" at the end of the first sentence is hereby deleted.
The second paragraph is deleted.
The last sentence of "Additional Information" on page 30
of the Prospectus is revised to delete the phrase "and
Flagship Pennsylvania Triple Tax Exempt Fund".
Supplement dated February 10, 1995 to the Flagship Tax
Exempt Funds Trust Prospectus dated February 3, 1995. On
page 27, the section "About the Investment Manager," is
hereby amended by adding the following sentence to the
end of the fourth paragraph: At any time during which a
portfolio manager is on vacation or is otherwise
unavailable for the day-to-day management, the
responsibility for the management of his designated funds
will shift to one or more of the other named portfolio
managers.
Supplement dated May 26, 1995 to the Prospectus
dated February 3, 1995 as supplemented by a supplement
dated February 10, 1995. On page 27, the section "About
the Investment Manager" (including the table therein) is
hereby amended by adding the following sentences to the
end of the fourth paragraph: The funds for which Mr.
Ashbaugh served as a designated team leader have been
reassigned as follows: All-American and Limited Term to
Richard Huber; Florida and Ohio to Michael Davern; North
Carolina, South Carolina and Tennessee to Jan
Terbrueggen. Additionally, the Intermediate Fund for
which Mr. Davern served as a designated team leader has
been reassigned to Jan Terbrueggen.
