AVESTA TRUST
Supplement dated September 25, 1997 to
Prospectus dated April 30, 1997
The Supervisory Committee of the AVESTA Trust (the "Trust") has
authorized, upon the recommendation of Texas Commerce Bank National
Association ("TCB"), the Trustee of the Trust, the filing of a preliminary
proxy statement with the Securities and Exchange Commission. The preliminary
proxy statement describes a proposal by TCB that holders of units of the
Money Market Fund series, Income Fund series, Intermediate Term Bond Fund
series, Equity Growth Fund series, Equity Income Fund series, Balanced Fund
series, Short-Intermediate Term U.S. Government Securities Fund series, U.S.
Government Securities Fund series, Small Capitalization Fund series and Core
Equity Fund series of the Trust (collectively, the "Converting Funds")
consider approval of the redomiciling and conversion (the "Conversion") of
the Trust from a Texas collective investment trust to a Massachusetts
business trust ("New Trust"). The Conversion is being proposed to expand the
availability of the Trust, which is currently limited to Eligible Retirement
Accounts.
Under the proposal, and, subject to approval of the Conversion by the
Participating Trusts of each of the Converting Funds, each Converting Fund
would transfer all of its assets and liabilities to ten newly-created
investment portfolios of New Trust in exchange for the issuance by New Trust
of shares of the respective acquiring investment portfolios. Under the
proposal, the value of the shares of each portfolio of New Trust issued in
connection with the contemplated transaction would equal the value of the net
assets of the corresponding Converting Fund.
The Supervisory Committee will shortly be considering TCB's proposal.
If the Committee approves the proposal, Participating Trusts will receive a
proxy statement requesting them to consider the Conversion at a Special
Meeting of Participating Trusts. Due to their relatively small size, TCB has
recommended to the Committee that the Risk Manager-Income, Risk Manager-
Growth and Risk Manager-Balanced Funds of the Trust not participate in the
Conversion. TCB has proposed that these Funds would cease operating by
December 31, 1997. If you are a holder of Units in the Risk Manager Funds,
you will shortly be contacted to consider the investment options that may be
available to you.
