Supplement dated May 9, 1997
to the following Prospectuses:
Flag Investors Telephone Income Fund, Inc. (Class A and Class B)
dated May 1, 1997
Flag Investors International Fund, Inc. (Class A) dated March 1, 1997
Flag Investors Emerging Growth Fund, Inc. (Class A and Class B)
dated March 1, 1997
Flag Investors Total Return U.S. Treasury Fund Shares (Class A and Class B)
dated March 1, 1997
Flag Investors Managed Municipal Fund Class A Shares dated March 1, 1997
Flag Investors Short-Intermediate Income Fund, Inc. (Class A) dated May 1, 1997
Flag Investors Value Builder Fund, Inc. (Class A and Class B)
dated August 1, 1996
Flag Investors Maryland Intermediate Tax-Free Income Fund, Inc. (Class A)
dated August 1, 1996
Flag Investors Real Estate Securities Fund, Inc. (Class A and Class B)
dated May 1, 1997
Flag Investors Equity Partners Fund, Inc. (Class A and Class B)
dated October 1, 1996
Flag Investors Cash Reserve Prime Shares (Class A and Class B)
dated August 1, 1996
Each of the above prospectuses is hereby amended and supplemented as follows:
Alex. Brown Incorporated ("Alex. Brown") has entered into an Agreement
and Plan of Merger with Bankers Trust New York Corporation ("Bankers
Trust"), dated as of April 6, 1997, under which Alex. Brown would merge
with and into a subsidiary of Bankers Trust (the "Merger"). Bankers Trust
is a registered bank holding company subject to the Bank Holding Company
Act of 1956, as amended ("BHCA"), and the rules and regulations thereunder.
The Board of Governors of the Federal Reserve System has promulgated rules
and regulations pursuant to its authority under the BHCA (and taking into
consideration certain provisions of the National Banking Act of 1933
generally referred to as the Glass-Steagall Act) that govern the
relationship between bank holding company affiliates and mutual funds, such
as the Fund. After the Merger, Alex. Brown and its affiliates would be
permitted under the BHCA to continue to provide investment advisory
services to the Fund, as well as services to Fund shareholders who are
Alex. Brown customers. However, depending on the nature and extent of any
regulatory relief granted in connection with the Merger, individuals
affiliated with Alex. Brown might not be able to serve as officers and
directors of the Fund and the Fund will likely have to engage an
independent distributor. Alex. Brown does not believe such changes, if
necessary, would substantially affect the operation of the Fund or the
services received by shareholders.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
Prs Sup BT
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