<PAGE>
EMERALD FUNDS
EMERALD EQUITY FUND
EMERALD EQUITY VALUE FUND
EMERALD INTERNATIONAL EQUITY FUND
EMERALD SMALL CAPITALIZATION FUND
EMERALD BALANCED FUND
EMERALD SHORT-TERM FIXED INCOME FUND
EMERALD U.S. GOVERNMENT SECURITIES FUND
EMERALD MANAGED BOND FUND
EMERALD FLORIDA TAX-EXEMPT FUND
EMERALD PRIME FUND
EMERALD TREASURY FUND
EMERALD TAX-EXEMPT FUND
RETAIL SHARES
SUPPLEMENT DATED AUGUST 19, 1996
TO THE PROSPECTUS DATED APRIL 1, 1996
Effective August 19, 1996, Brandes Investment Partners, L.P. ("Brandes")
will become a sub-adviser to the International Equity Fund. Brandes'
principal office is located at 12750 High Bluff Drive, San Diego, California
92130. As of June 30, 1996, Brandes had approximately $7.2 billion under
management. Brandes Investment Partners, Inc. owns a controlling interest in
Brandes and serves as its general partner. Charles Brandes is the controlling
shareholder of Brandes Investment Partners, Inc.
Subject to the oversight and supervision of the Adviser and the Trust's
Board of Trustees, Brandes will provide a continuous investment program for
the International Equity Fund, including investment research and management
with respect to all securities and investments, except for cash balances of
the Fund which are managed by the Adviser. In exchange for its services,
Brandes will receive a fee from the Adviser, computed daily and payable
monthly, at the annual rate of 0.50% of the average daily net assets of the
Fund. This fee is payable by the Adviser and does not represent an additional
charge to the Fund.
In connection with Brandes' appointment as sub-adviser, Jeffrey A.
Busby, CFA, will become responsible for the day-to-day management of the
International Equity Fund, except, as noted, with respect to the Fund's cash
balances. Mr. Busby has been a Managing Partner and Senior Portfolio Manager
at Brandes since August 1988. Also in connection with Brandes' appointment as
sub-adviser, Don W. Bryant, CFA, will become the Adviser's "Sub-Advisory
Liaison." In such capacity, Mr. Bryant will supervise on behalf of the
Adviser the provision of investment advisory services by Brandes. Mr. Bryant
currently serves as an Institutional Portfolio Manager for the Adviser.
<PAGE>
EMERALD FUNDS
EMERALD EQUITY FUND
EMERALD EQUITY VALUE FUND
EMERALD INTERNATIONAL EQUITY FUND
EMERALD SMALL CAPITALIZATION FUND
EMERALD BALANCED FUND
EMERALD SHORT-TERM FIXED INCOME FUND
EMERALD U.S. GOVERNMENT SECURITIES FUND
EMERALD MANAGED BOND FUND
EMERALD FLORIDA TAX-EXEMPT FUND
EMERALD PRIME FUND
EMERALD TREASURY FUND
INSTITUTIONAL SHARES
SUPPLEMENT DATED AUGUST 19, 1996
TO THE PROSPECTUS DATED APRIL 1, 1996
Effective August 19, 1996, Brandes Investment Partners, L.P. ("Brandes")
will become a sub-adviser to the International Equity Fund. Brandes'
principal office is located at 12750 High Bluff Drive, San Diego, California
92130. As of June 30, 1996, Brandes had approximately $7.2 billion under
management. Brandes Investment Partners, Inc. owns a controlling interest in
Brandes and serves as its general partner. Charles Brandes is the controlling
shareholder of Brandes Investment Partners, Inc.
Subject to the oversight and supervision of the Adviser and the Trust's
Board of Trustees, Brandes will provide a continuous investment program for
the International Equity Fund, including investment research and management
with respect to all securities and investments, except for cash balances of
the Fund which are managed by the Adviser. In exchange for its services,
Brandes will receive a fee from the Adviser, computed daily and payable
monthly, at the annual rate of 0.50% of the average daily net assets of the
Fund. This fee is payable by the Adviser and does not represent an additional
charge to the Fund.
In connection with Brandes' appointment as sub-adviser, Jeffrey A.
Busby, CFA, will become responsible for the day-to-day management of the
International Equity Fund, except, as noted, with respect to the Fund's cash
balances. Mr. Busby has been a Managing Partner and Senior Portfolio Manager
at Brandes since August 1988. Also in connection with Brandes' appointment as
sub-adviser, Don W. Bryant, CFA, will become the Adviser's "Sub-Advisory
Liaison." In such capacity, Mr. Bryant will supervise on behalf of the
Adviser the provision of investment advisory services by Brandes. Mr. Bryant
currently serves as an Institutional Portfolio Manager for the Adviser.
<PAGE>
EMERALD FUNDS
EMERALD EQUITY FUND
EMERALD EQUITY VALUE FUND
EMERALD INTERNATIONAL EQUITY FUND
EMERALD SMALL CAPITALIZATION FUND
EMERALD BALANCED FUND
EMERALD SHORT-TERM FIXED INCOME FUND
EMERALD U.S. GOVERNMENT SECURITIES FUND
EMERALD MANAGED BOND FUND
EMERALD FLORIDA TAX-EXEMPT FUND
INSTITUTIONAL SHARES
SUPPLEMENT DATED AUGUST 19, 1996
TO THE PROSPECTUS DATED APRIL 1, 1996
Effective August 19, 1996, Brandes Investment Partners, L.P. ("Brandes")
will become a sub-adviser to the International Equity Fund. Brandes'
principal office is located at 12750 High Bluff Drive, San Diego, California
92130. As of June 30, 1996, Brandes had approximately $7.2 billion under
management. Brandes Investment Partners, Inc. owns a controlling interest in
Brandes and serves as its general partner. Charles Brandes is the controlling
shareholder of Brandes Investment Partners, Inc.
Subject to the oversight and supervision of the Adviser and the Trust's
Board of Trustees, Brandes will provide a continuous investment program for
the International Equity Fund, including investment research and management
with respect to all securities and investments, except for cash balances of
the Fund which are managed by the Adviser. In exchange for its services,
Brandes will receive a fee from the Adviser, computed daily and payable
monthly, at the annual rate of 0.50% of the average daily net assets of the
Fund. This fee is payable by the Adviser and does not represent an additional
charge to the Fund.
In connection with Brandes' appointment as sub-adviser, Jeffrey A.
Busby, CFA, will become responsible for the day-to-day management of the
International Equity Fund, except, as noted, with respect to the Fund's cash
balances. Mr. Busby has been a Managing Partner and Senior Portfolio Manager
at Brandes since August 1988. Also in connection with Brandes' appointment as
sub-adviser, Don W. Bryant, CFA, will become the Adviser's "Sub-Advisory
Liaison." In such capacity, Mr. Bryant will supervise on behalf of the
Adviser the provision of investment advisory services by Brandes. Mr. Bryant
currently serves as an Institutional Portfolio Manager for the Adviser.
<PAGE>
EMERALD FUNDS
EMERALD EQUITY FUND
EMERALD EQUITY VALUE FUND
EMERALD INTERNATIONAL EQUITY FUND
EMERALD SMALL CAPITALIZATION FUND
EMERALD BALANCED FUND
EMERALD SHORT-TERM FIXED INCOME FUND
EMERALD U.S. GOVERNMENT SECURITIES FUND
EMERALD MANAGED BOND FUND
EMERALD FLORIDA TAX-EXEMPT FUND
EMERALD PRIME FUND
EMERALD TREASURY FUND
EMERALD TAX-EXEMPT FUND
SUPPLEMENT DATED AUGUST 19, 1996 TO THE
STATEMENT OF ADDITIONAL INFORMATION
DATED APRIL 1, 1996
Effective August 19, 1996, Brandes Investment Partners, L.P. ("Brandes")
will become a sub-adviser to the International Equity Fund. Brandes'
principal office is located at 12750 High Bluff Drive, San Diego, California
92130. As of June 30, 1996, Brandes had approximately $7.2 billion under
management. Brandes Investment Partners, Inc. owns a controlling interest in
Brandes and serves as its general partner. Charles Brandes is the controlling
shareholder of Brandes Investment Partners, Inc.
Subject to the oversight and supervision of the Adviser and the Trust's
Board of Trustees, Brandes will provide a continuous investment program for
the International Equity Fund, including investment research and management
with respect to all securities and investments, except for cash balances of
the Fund which are managed by the Adviser. The terms of the Sub-Investment
Advisory Agreement between Brandes and the Adviser are substantially the same
as the terms of the Investment Advisory Agreement between the Trust and the
Adviser. In exchange for its services, Brandes will receive a fee from the
Adviser, computed daily and payable monthly, at the annual rate of 0.50% of
the average daily net assets of the Fund. This fee is payable by the Adviser
and does not represent an additional charge to the Fund.
