Avondale Hester Total Return Fund
Supplement dated October 6, 1998
to Prospectus dated August 1, 1998
Management of the Fund
On September 30, 1998, shareholders approved the new investment
advisory agreement with Hester Capital Management, LLC ("Hester"). Hester is a
registered investment adviser located at 100 Congress Ave., Austin, TX 78701,
and provides investment advisory services to individuals and institutions with
assets of approximately $500 million. Hester is a majority-owned subsidiary of
Morgan Asset Management, Inc., which is owned by Morgan Keegan & Co., a New York
Stock Exchange listed brokerage and investment advisory firm headquartered in
Memphis, TN.
There is no change in the advisory fees rate paid by the Fund. The
Fund's name has been changed to "Avondale Hester Total Return Fund."
Objective and Investment Approach of the Fund
The Fund's objective of seeking maximum total return consistent with
reasonable risk by investing in equity and fixed income securities is unchanged.
The Fund may invest up to 100% of its assets in equity or fixed income
securities as circumstances warrant in the view of Hester. In selecting equity
investments, Hester uses fundamental analysis and focuses on stocks of companies
that have a market capitalization equal to or in excess of $500 million
(commonly known as large mid-cap stocks) and stocks of companies that have a
market capitalization in excess of $1 billion (commonly known as large cap
stocks). Fixed income securities purchased by the Fund include U.S. Government
and agency securities, high grade corporate and asset backed securities.
Typically, the average maturity for the fixed income portion of the Fund's
portfolio would be between two and ten years.
Dividends and Distributions
Effective October 7, 1998, the Fund's dividend policy has been revised
to provide for payment of dividends from net investment income once annually.
