ECLIPSE FINANCIAL ASSET TRUST
PROSPECTUS SUPPLEMENT
SEPTEMBER 2, 1997
Eclipse Ultra Short Term Income Fund
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The Board of Trustees of Eclipse Financial Asset Trust has approved a change,
effective September 19, 1997, in the investment policies of the Eclipse Ultra
Short Term Income Fund to permit it to invest without limit in collateralized
mortgage obligations and multiclass pass-through securities, stripped
mortgage-backed securities and collateralized mortgage obligation residuals. A
description of these investment policies and related risk considerations is
contained in the Prospectus for Eclipse Financial Asset Trust dated May 1, 1997
on pages 13 and 14 under the subheadings "Collateralized Mortgage Obligations
and Multiclass Pass-Through Securities", "Stripped Mortgage-Backed Securities"
and "CMO Residuals", each of which is contained under the heading "Investment
Objectives, Policies and Risk Considerations -- Balanced Fund."
