This supplement supercedes and replaces any existing supplements
to the prospectus. This supplement provides new and additional
information beyond that contained in the prospectus. It should be
retained and read in conjunction with the prospectus.
Supplement dated July 7, 1999 to the
The Rodney Square Strategic Equity Fund
Prospectus dated May 1, 1999
The following replaces and supersedes the first paragraph
relating to the Small Cap Equity Portfolio under "Primary
Investment Strategies" on pages 5 and 6 in the prospectus:
The Small Cap Equity Portfolio is a diversified portfolio of
small cap U.S. equity (or related) securities with a market
capitalization of $2 billion or less at the time of purchase. To
achieve the Portfolio's objective of long-term growth of capital,
the adviser employs a combined growth and value investment
approach. The adviser uses proprietary quantitative research
techniques to find companies with long-term growth potential or
that seem undervalued. After analyzing these companies, the
adviser invests the Portfolio's assets in the stocks of companies
with the most attractive combination of long-term earnings growth
and valuation. Securities will be sold to make room for new
companies with superior growth, valuation and projected return
characteristics or to preserve capital in cases where a company's
performance has not met our original assessment of its growth
prospects and earnings power. In the Portfolio's efforts to
achieve its investment objective, it seeks to outperform the
Russell 2000 Index (assuming that a similar investment in the
securities comprising this index would reinvest dividends and
capital gains distributions). The Russell 2000 Index is a
passive index of the smallest 2000 stocks in the Russell 3000
Index of the 3000 largest stocks in the U.S. as measured by
market capitalization.
The following supplements the "PURCHASE OF SHARES" section of
the prospectus:
Payroll Investment Plan: The Payroll Investment Plan
("PIP") permits you to make regularly scheduled purchases of
Portfolio shares through payroll deductions. To open a PIP
account, you must submit a completed account application, payroll
deduction form and the minimum initial deposit to your employer's
payroll department. Then, a portion of your paychecks
automatically will be transferred to your PIP account for as long
as you wish to participate in the plan. It is the sole
responsibility of your employer, not the Fund, the Distributor,
Investment Manager or Transfer Agent, to arrange for transactions
under the PIP. The Fund reserves the right to vary its minimum
purchase requirements for employees participating in a PIP.
