LANCASTER FUNDS INSTITUTIONAL MONEY MARKET FUND
SUPPLEMENT TO PROSPECTUS
Effective May 20, 1998, the Institutional Money Market Fund will no
longer invest in fully insured student loans held in trust by the Mid-America
Student Finance Trust as described on page 4 of the Prospectus and all holdings
in such student loans were liquidated. The change occurred as a result of the
adoption of amendments to Financial Accounting Standards Board Rule 125 which
made the issuance of such trust certificates by the Trustee and the holdings of
such trust certificates by the Fund impractical. Subsequent to May 20, 1998, the
Institutional Money Market Fund will invest solely in securities issued or
guaranteed by the United States Government, obligations issued or guaranteed by
agencies or instrumentalities of the United States Government and such other
securities as described in the Prospectus and Statement of Additional
Information.
Dated May 20, 1998
