<PAGE>
DLJ MUTUAL FUNDS
SUPPLEMENT DATED OCTOBER 31, 2000 TO PROSPECTUS DATED AUGUST 1, 2000
1) Credit Suisse Group ('Credit Suisse') and Donaldson, Lufkin & Jenrette, Inc.
('DLJ'), an indirect parent of the Adviser, have entered into an agreement
pursuant to which Credit Suisse will acquire DLJ. While consummation of the
acquisition, expected to occur in early November, will effect a change of
control of the Adviser, it is not expected to change in any material way the
policies or investment personnel involved in the management of the DLJ Mutual
Funds. Pursuant to the Investment Company Act of 1940, the change in control of
the Adviser will terminate the current investment advisory contracts between the
DLJ Mutual Funds and the Adviser. The Board of Directors/Trustees of the DLJ
Mutual Funds have approved interim investment advisory contracts with the
Adviser on the same terms as the current investment advisory contracts, except
that the term of the interim investment advisory contracts will end 150 days
from the termination of the current investment advisory contracts or upon the
approval of new longer-term investment advisory contracts by the stockholders of
each of the DLJ Mutual Funds, whichever occurs first.
2) AXA Investor Managers GS Ltd. ('AXA'), the sub-adviser of DLJ Developing
Markets Fund and DLJ International Equity Fund (the 'International Funds'), and
the International Funds have agreed to the termination of the sub-advisory
contract, effective November 1, 2000. Following termination of the sub-advisory
contract, the Adviser will be solely responsible for investment management of
the International Funds. At that time, the investment advisory fee for DLJ
International Equity Fund will be reduced from an annual rate of 1.25% to 1.00%
of its average daily net assets, while the investment advisory fee for DLJ
Developing Markets Fund will continue at its current rate of 1.25% of its
average daily net assets. Luisa Michel and Hugh Neuburger will act as
co-portfolio managers of each of the International Funds. Ms. Michel joined the
Adviser in 1998 and has served as an international equity portfolio manager.
From 1993 to 1998, Ms. Michel was a Senior International Credit Analyst at
Merrill Lynch, Pierce, Fenner and Smith Inc. focusing on Latin America. From
1989 to 1991, she acted as a lending officer for Manufacturers Hanover Trust
Company. Mr. Neuburger has served as a portfolio manager with the Adviser since
March 1995 and is Managing Director for growth equities.
3) For the period November 1, 2000 through October 31, 2001, the Adviser for
each of the below referenced DLJ Mutual Funds has undertaken in writing to
reduce its management fees and reimburse operating expenses in order to limit
the Total Fund Operating Expenses to the below referenced percentage of daily
net assets. After October 31, 2001, the Adviser may, in its sole discretion,
determine to discontinue this practice with respect to any Fund.
<TABLE>
<S> <C> <C> <C>
Fixed Income Fund Class A 0.95% Municipal Trust Fund Class A 0.95%
Class B 1.70% Class B 1.70%
Class C 1.70% Class C 1.70%
Class D 0.70% Class R 0.95%
Class R 0.95%
International Equity Fund Class A 2.15% Developing Markets Fund Class A 2.15%
Class B 2.90% Class B 2.90%
Class C 2.90% Class C 2.90%
Class D 1.90% Class R 2.15%
Class R 2.15%
High Income Fund Class A 1.10% Municipal Money Fund .90%
Class B 1.85% U.S. Government Money Fund .90%
Class C 1.85%
Class D 0.85%
Class R 1.10%
</TABLE>
