ECLIPSE FUNDS
Ultra Short Term Income Fund
Balanced Fund
Growth and Income Fund
Equity Fund
Supplement Dated November 23, 1998
to Prospectus Dated May 1, 1998
Supplement provisions (A) and (B) apply exclusively to the Ultra Short
Term Income Fund and the Balanced Fund. Supplement provision (C) applies to all
four investment portfolios under the Eclipse Funds (the "Trust").
(A) The following two paragraphs are inserted (1) before the last paragraph
under "Table of Fees and Expenses" on page 4 and (2) after the first paragraph
in the second column on page 24:
Effective January 1, 1999, the Manager has voluntarily agreed
to reduce its fee payable under the 1994 Contract, as defined herein, with
respect to the Ultra Short Term Income Fund from an annual rate of 0.40% of the
Fund's average daily net assets to an annual rate of 0.20% of the Fund's average
daily net assets for a three year period ending December 31, 2001.
In addition, effective January 1, 1999, the management fee payable to
the Manager with respect to the Balanced Fund has been reduced from an annual
rate of 0.80% of the Fund's average daily net assets to an annual rate of 0.75%
of the Fund's average daily net assets pursuant to an October 20, 1998 amendment
to the 1987 Contract, as defined herein.
(B) The annual management fee rate of 0.80% pertaining to the Balanced Fund is
amended to 0.75% wherever listed in the fee schedules (1) under "The Manager" on
page 9 and (2) under "Investment Management Contracts" on page 24.
(C) Effective November 23, 1998, the mailing address of the Trust and Towneley
Capital Management, Inc., listed as 144 E. 30th Street, New York, New York,
10016, in the Prospectus, will change to:
470 Park Avenue South
New York, New York 10016
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ECLIPSE FUNDS
Ultra Short Term Income Fund
Balanced Fund
Growth and Income Fund
Equity Fund
Supplement Dated November 23, 1998
to Statement of Additional Information Dated May 1, 1998
Supplement provisions (A) and (B) apply exclusively to the Ultra Short
Term Income Fund and the Balanced Fund. Supplement provision (C) applies to all
four investment portfolios under the Eclipse Funds (the "Trust").
(A) The following two paragraphs are inserted after the fifth complete paragraph
under the management fee schedule on page 9:
Effective January 1, 1999, the Manager has voluntarily agreed
to reduce its fee payable under the 1994 Contract, as defined herein, with
respect to the Ultra Short Term Income Fund from an annual rate of 0.40% of the
Fund's average daily net assets to an annual rate of 0.20% of the Fund's average
daily net assets for a three year period ending December 31, 2001.
In addition, effective January 1, 1999, the management fee payable to
the Manager with respect to the Balanced Fund has been reduced from an annual
rate of 0.80% of the Fund's average daily net assets to an annual rate of 0.75%
of the Fund's average daily net assets pursuant to an October 20, 1998 amendment
to the 1987 Contract, as defined herein.
(B) The annual management fee rate of 0.80% pertaining to the Balanced Fund is
amended to 0.75% where listed in the fee schedule under "Manager" on page 8.
(C) Effective November 23, 1998, the mailing address of the Trust and Towneley
Capital Management, Inc., listed as 144 E. 30th Street, New York, New York,
10016, in the Statement of Additional Information, will change to:
470 Park Avenue South
New York, New York 10016
