<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 TO PROSPECTUS DATED APRIL 1, 1996
(AS SUPPLEMENTED AND REDATED AUGUST 30, 1996)
The following information has been added to the section entitled "Summary of
Expenses -- Financial Highlights":
The following unaudited information for Retail Shares of the Funds
has been derived from the semi-annual financial statements incorporated
into the Statement of Additional Information. This financial information
should be read together with those financial statements.
<PAGE>
FINANCIAL HIGHLIGHTS FOR A RETAIL SHARE OF EACH FUND OUTSTANDING THROUGHOUT THE
PERIOD INDICATED:
<TABLE>
<CAPTION>
EQUITY SMALL
VALUE INTERNATIONAL CAPITALIZATION
EQUITY FUND FUND EQUITY FUND FUND
----------- ----------- ------------- --------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS PERIOD PERIOD SIX MONTHS
ENDED ENDED ENDED ENDED
5/31/96(A) 5/31/96* 5/31/96* 5/31/96(A)
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------- ------------- --------------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 14.62 $ 10.00 $ 10.00 $ 12.77
----------- ----------- ------------- --------------
Income (loss) from investment operations:
Net investment income (loss).................... 0.01 0.13 0.08 (0.05)
Net realized and unrealized gains on
securities..................................... 1.51 0.81 0.58 2.80
----------- ----------- ------------- --------------
Total income from investment operations......... 1.52 0.94 0.66 2.75
----------- ----------- ------------- --------------
Less dividends and distributions:
Dividends from net investment income............ (0.02) (0.13) (0.01) (0.00)
Distributions from net realized gains on
securities..................................... (1.29) (0.00) (0.00) (1.00)
----------- ----------- ------------- --------------
Total dividends and distributions............... (1.31) (0.13) (0.01) (1.00)
----------- ----------- ------------- --------------
Net change in net asset value..................... 0.21 0.81 0.65 1.75
----------- ----------- ------------- --------------
NET ASSET VALUE, END OF PERIOD.................... $ 14.83 $ 10.81 $ 10.65 $ 14.52
----------- ----------- ------------- --------------
----------- ----------- ------------- --------------
Total return...................................... 11.53%++ 9.42%++ 6.56%++ 23.07%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)................ $29,609 $ 1 $ 1 $ 9,343
Ratio of expenses to average net assets......... 1.20%+ 0.00%+ 0.00%+ 1.40%+
Ratio of net investment income (loss) to average
net assets..................................... 0.06%+ 2.85%+ 1.82%+ (0.93%)+
Ratio of expenses to average net assets**....... 1.21%+ 317.36%+ 328.68%+ 1.47%+
Ratio of net investment income (loss) to average
net assets**................................... 0.05%+ (314.51%)+ (326.86%)+ (1.00%)+
Portfolio turnover.............................. 47% 8% 1% 147%
Average commission rate paid (b)................ $0.0517 $0.0877 $ 0.0902 $ 0.0426
</TABLE>
* For the period December 27, 1995 (commencement of operations) through May
31, 1996.
** During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
(a) On March 11, 1996, the Fund terminated its offering of Class B Shares under
the then-current sales load schedule and such shares subsequently converted
to Retail Shares without affecting the net asset value of the Retail Shares.
(b) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
+ Annualized.
++ Unannualized.
2
<PAGE>
FINANCIAL HIGHLIGHTS FOR A RETAIL SHARE OF EACH FUND OUTSTANDING THROUGHOUT THE
PERIOD INDICATED:
<TABLE>
<CAPTION>
U.S.
SHORT-TERM GOVERNMENT
BALANCED FIXED INCOME SECURITIES MANAGED
FUND FUND FUND BOND FUND
----------- ------------ --------------- -----------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
5/31/96(A) 5/31/96(A) 5/31/96(A) 5/31/96(A)
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ------------ --------------- -----------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 12.02 $10.14 $ 10.39 $10.59
----------- ------------ --------------- -----------
Income (loss) from investment operations:
Net investment income........................... 0.15 0.28 0.32 0.31
Net realized and unrealized gains (losses) on
securities..................................... 0.65 (0.20) (0.38) (0.45)
----------- ------------ --------------- -----------
Total income (loss) from investment
operations..................................... 0.80 0.08 (0.06) (0.14)
----------- ------------ --------------- -----------
Less dividends and distributions:
Dividends from net investment income............ (0.16) (0.28) (0.30) (0.31)
Dividends in excess of net investment income.... (0.00) (0.00) (0.00) (0.10)
Distributions from net realized gains on
securities..................................... (0.22) (0.03) (0.00) (0.00)
----------- ------------ --------------- -----------
Total dividends and distributions............... (0.38) (0.31) (0.30) (0.41)
----------- ------------ --------------- -----------
Net change in net asset value..................... 0.42 (0.23) (0.36) (0.55)
----------- ------------ --------------- -----------
NET ASSET VALUE, END OF PERIOD.................... $ 12.44 $ 9.91 $ 10.03 $10.04
----------- ------------ --------------- -----------
----------- ------------ --------------- -----------
Total return...................................... 6.85%++ 0.82%++ (0.64%)++ (1.41%)++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)................ $ 4,955 $ 983 $24,429 $1,810
Ratio of expenses to average net assets......... 0.74%+ 0.74%+ 1.10%+ 0.71%+
Ratio of net investment income to average net
assets......................................... 1.71%+ 4.81%+ 6.00%+ 4.81%+
Ratio of expenses to average net assets*........ 1.09%+ 2.43%+ 1.12%+ 1.30%+
Ratio of net investment income to average net
assets*........................................ 1.36%+ 3.12%+ 5.98%+ 4.22%+
Portfolio turnover.............................. 48% 19% 20% 50%
Average commission rate paid (b)................ $0.0470 -- -- --
</TABLE>
* During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
(a) On March 11, 1996, the Fund terminated its offering of Class B Shares under
the then-current sales load schedule and such shares subsequently converted
to Retail Shares without affecting the net asset value of the Retail Shares
(b) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
+ Annualized.
++ Unannualized.
3
<PAGE>
FINANCIAL HIGHLIGHTS FOR A RETAIL SHARE OF EACH FUND OUTSTANDING THROUGHOUT THE
PERIOD INDICATED:
<TABLE>
<CAPTION>
FLORIDA TAX- PRIME TREASURY TAX-EXEMPT
EXEMPT FUND FUND FUND FUND
------------- ------------ --------------- -----------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
5/31/96(A) 5/31/96 5/31/96 5/31/96
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
------------- ------------ --------------- -----------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 11.09 $ 1.0002 $ 0.9996 $ 0.9996
------------- ------------ --------------- -----------
Income (loss) from investment operations:
Net investment income........................... 0.27 0.0236 0.0224 0.0138
Net realized and unrealized gains (losses) on
securities..................................... (0.53) 0.0000 (0.0002) 0.0001
------------- ------------ --------------- -----------
Total income (loss) from investment
operations..................................... (0.26) 0.0236 0.0222 0.0139
------------- ------------ --------------- -----------
Less dividends and distributions:
Dividends from net investment income............ (0.27) (0.0236) (0.0224) (0.0138)
Distributions from net realized gains on
securities..................................... (0.00) (0.0002) (0.0000) (0.0000)
------------- ------------ --------------- -----------
Total dividends and distributions............... (0.27) (0.0238) (0.0224) (0.0138)
------------- ------------ --------------- -----------
Net change in net asset value..................... (0.53) (0.0002) (0.0002) 0.0001
------------- ------------ --------------- -----------
NET ASSET VALUE, END OF PERIOD.................... $ 10.56 $ 1.0000 $ 0.9994 $ 0.9997
------------- ------------ --------------- -----------
------------- ------------ --------------- -----------
Total return...................................... (2.43%)++ 2.41%++ 2.26%++ 1.38%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)................ $88,929 $540,812 $ 45,620 $ 43,457
Ratio of expenses to average net
assets......................................... 0.96%+ 0.90%+ 0.90%+ 0.90%+
Ratio of net investment income to average net
assets......................................... 4.64%+ 4.71%+ 4.49%+ 2.72%+
Ratio of expenses to average net assets*........ 1.06%+ 0.92%+ 0.96%+ 1.00%+
Ratio of net investment income to average net
assets*........................................ 4.54%+ 4.70%+ 4.43%+ 2.62%+
Portfolio turnover.............................. 92% -- -- --
</TABLE>
* During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
(a) On March 11, 1996, the Fund terminated its offering of Class B Shares under
the then-current sales load schedule and such shares subsequently converted
to Retail Shares without affecting the net asset value of the Retail Shares
+ Annualized.
++ Unannualized.
4
<PAGE>
INVESTMENT ADVISER -- ADDITIONAL INFORMATION. For the period ended May 31,
1996, all investment advisory fees payable by the Equity Value Fund and
International Equity Fund were waived.
Effective June 29, 1996 Barnett Capital Advisors, Inc., a newly-organized,
wholly-owned subsidiary of Barnett Bank, N.A. which, in turn, is a wholly-owned
subsidiary of Barnett Banks, Inc., assumed the investment advisory
responsibilities of Barnett Banks Trust Company, N.A. for each of the Funds on
the terms and conditions stated in the Prospectus. This change did not involve a
change in control or management of the investment adviser. Barnett Capital
Advisors, Inc. maintains offices at 9000 Southside Boulevard, Building 100,
Jacksonville, Florida 32256.
* * *
Effective August 19, 1996, Brandes Investment Partners, L.P. ("Brandes")
became 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 provides 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 receives
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, became 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, became the Adviser's "Sub-Advisory Liaison." In such capacity, Mr.
Bryant will oversee the provision of sub-investment advisory services by
Brandes. Mr. Bryant has served as an Institutional Portfolio Manager for the
Adviser for the past seven years.
* * *
5
<PAGE>
Effective August 31, 1996, Jeffrey A. Greenert will assume responsibility
for the day-to-day management of the Short-Term Fixed Income Fund. Mr. Greenert
joined Barnett in 1985 and he currently serves as a fixed income portfolio
manager and analyst and is a member of the Adviser's Fixed Income Strategy
Committee.
Effective August 31, 1996, Margaret L. Moore will assume responsibility for
the day-to-day management of the Florida Tax-Exempt Fund. Ms. Moore joined
Barnett in 1991 from First Florida Bank, N.A. where she was a Fixed Income
Trader for individual trust accounts for five years. Ms. Moore currently serves
as a tax-exempt investment manager for the Adviser and is a member of the
Adviser's Fixed Income Strategy Committee.
THIS SUPPLEMENT IS DATED AUGUST 30, 1996.
EMD-0106
6
<PAGE>
EMERALD FUNDS
EMERALD PRIME TRUST FUND
EMERALD TREASURY TRUST FUND
SUPPLEMENT TO PROSPECTUS DATED APRIL 1, 1996
(AS SUPPLEMENTED AND REDATED AUGUST 30, 1996)
The following information has been added to the section entitled "Summary of
Expenses -- Financial Highlights":
The following unaudited information for shares of the Funds has been
derived from the semi-annual financial statements incorporated into the
Statement of Additional Information. This financial information should
be read together with those financial statements.
FINANCIAL HIGHLIGHTS FOR A SHARE OF EACH FUND OUTSTANDING THROUGHOUT THE PERIOD
INDICATED:
<TABLE>
<CAPTION>
PRIME TRUST TREASURY TRUST
FUND FUND
----------- --------------
FOR THE FOR THE
SIX MONTHS SIX MONTHS
ENDED ENDED
5/31/96 5/31/96
(UNAUDITED) (UNAUDITED)
----------- --------------
<S> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 0.9999 $ 1.0000
----------- --------------
Income (loss) from investment operations:
Net investment income........................... 0.0258 0.0251
Net realized gains (losses) on securities....... 0.0000 (0.0003)
----------- --------------
Total income from investment operations......... 0.0258 0.0248
----------- --------------
Less dividends and distributions:
Dividends from net investment income............ (0.0258) (0.0251)
Distributions from net realized gains on
securities..................................... (0.0000) (0.0001)
----------- --------------
Total dividends and distributions............... (0.0258) (0.0252)
----------- --------------
Net change in net asset value..................... 0.0000 (0.0004)
----------- --------------
NET ASSET VALUE, END OF PERIOD.................... $ 0.9999 $ 0.9996
----------- --------------
----------- --------------
Total return...................................... 2.61%++ 2.55%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)................ $145,746 $138,134
Ratio of expenses to average net assets......... 0.38%+ 0.38%+
Ratio of net investment income to average net
assets......................................... 5.21%+ 5.05%+
Ratio of expenses to average net assets*........ 0.38%+ 0.38%+
Ratio of net investment income to average net
assets*........................................ 5.21%+ 5.05%+
</TABLE>
* During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
+ Annualized.
++ Unannualized.
<PAGE>
INVESTMENT ADVISER -- ADDITIONAL INFORMATION. Effective June 29, 1996
Barnett Capital Advisors, Inc., a newly-organized, wholly-owned subsidiary of
Barnett Bank, N.A. which, in turn, is a wholly-owned subsidiary of Barnett
Banks, Inc., assumed the investment advisory responsibilities of Barnett Banks
Trust Company, N.A. for each of the Funds on the terms and conditions stated in
the Prospectus. This change did not involve a change in control or management of
the investment adviser. Barnett Capital Advisors, Inc. maintains offices at 9000
Southside Boulevard, Building 100, Jacksonville, Florida 32256.
THIS SUPPLEMENT IS DATED AUGUST 30, 1996.
EMD-0105
2
<PAGE>
EMERALD FUNDS
EMERALD PRIME FUND
EMERALD TREASURY FUND
EMERALD TAX-EXEMPT FUND
INSTITUTIONAL SHARES/SERVICE SHARES
SUPPLEMENT TO PROSPECTUS DATED APRIL 1, 1996
(AS SUPPLEMENTED AND REDATED AUGUST 30, 1996)
The following information has been added to the section entitled "Summary of
Expenses -- Financial Highlights":
The following unaudited information for Institutional and Service
Shares of the Funds has been derived from the semi-annual financial
statements incorporated into the Statement of Additional Information.
This financial information should be read together with those financial
statements.
<PAGE>
FINANCIAL HIGHLIGHTS FOR AN INSTITUTIONAL SHARE OF EACH FUND OUTSTANDING
THROUGHOUT THE PERIOD INDICATED:
<TABLE>
<CAPTION>
TAX-EXEMPT
PRIME FUND TREASURY FUND FUND
---------- ------------- ---------------
FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
5/31/96 5/31/96 5/31/96
(UNAUDITED) (UNAUDITED) (UNAUDITED)
---------- ------------- ---------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 1.0002 $ 0.9996 $ 0.9996
---------- ------------- ---------------
Income (loss) from investment operations:
Net investment income........................... 0.0262 0.0249 0.0163
Net realized and unrealized gains (losses) on
securities..................................... 0.0000 (0.0002) 0.0001
---------- ------------- ---------------
Total income from investment operations......... 0.0262 0.0247 0.0164
---------- ------------- ---------------
Less dividends and distributions:
Dividends from net investment income............ (0.0262) (0.0249) (0.0163)
Distributions from net realized gains on
securities..................................... (0.0002) (0.0000) (0.0000)
---------- ------------- ---------------
Total dividends and distributions............... (0.0264) (0.0249) (0.0163)
---------- ------------- ---------------
Net change in net asset value..................... (0.0002) (0.0002) 0.0001
---------- ------------- ---------------
NET ASSET VALUE, END OF PERIOD.................... $ 1.0000 $ 0.9994 $ 0.9997
---------- ------------- ---------------
---------- ------------- ---------------
Total return...................................... 2.67%++ 2.52%++ 1.64%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)................ $645,795 $236,090 $133,586
Ratio of expenses to average net assets......... 0.38%+ 0.40%+ 0.38%+
Ratio of net investment income to average net
assets......................................... 5.23%+ 4.99%+ 3.25%+
Ratio of expenses to average net assets*........ 0.38%+ 0.41%+ 0.48%+
Ratio of net investment income to average net
assets*........................................ 5.23%+ 4.98%+ 3.15%+
</TABLE>
* During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
+ Annualized.
++ Unannualized.
2
<PAGE>
FINANCIAL HIGHLIGHTS FOR A SERVICE SHARE OF EACH FUND OUTSTANDING THROUGHOUT THE
PERIOD INDICATED:
<TABLE>
<CAPTION>
TAX-EXEMPT
PRIME FUND TREASURY FUND FUND
---------- ------------- ---------------
FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED
5/31/96 5/31/96 5/31/96
(UNAUDITED) (UNAUDITED) (UNAUDITED)
---------- ------------- ---------------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.............. $ 1.0002 $ 0.9996 $ 0.9996
---------- ------------- ---------------
Income (loss) from investment operations:
Net investment income........................... 0.0245 0.0232 0.0145
Net realized and unrealized gains (losses) on
securities..................................... 0.0000 (0.0002) 0.0001
---------- ------------- ---------------
Total income from investment operations......... 0.0245 0.0230 0.0146
---------- ------------- ---------------
Less dividends and distributions:
Dividends from net investment income............ (0.0245) (0.0232) (0.0145)
Distributions from net realized gains on
securities..................................... (0.0002) (0.0000) (0.0000)
---------- ------------- ---------------
Total dividends and distributions............... (0.0247) (0.0232) (0.0145)
---------- ------------- ---------------
Net change in net asset value..................... (0.0002) (0.0002) 0.0001
---------- ------------- ---------------
NET ASSET VALUE, END OF PERIOD.................... $ 1.0000 $ 0.9994 $ 0.9997
---------- ------------- ---------------
---------- ------------- ---------------
Total return.................................... 2.50%++ 2.34%++ 1.46%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)................ $886,991 $579,856 $ 2,877
Ratio of expenses to average net assets......... 0.72%+ 0.75%+ 0.75%+
Ratio of net investment income to average net
assets......................................... 4.90%+ 4.63%+ 2.90%+
Ratio of expenses to average net assets*........ 0.72%+ 0.76%+ 0.85%+
Ratio of net investment income to average net
assets*........................................ 4.90%+ 4.62%+ 2.80%+
</TABLE>
* During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
+ Annualized.
++ Unannualized.
3
<PAGE>
INVESTMENT ADVISER -- ADDITIONAL INFORMATION. Effective June 29, 1996
Barnett Capital Advisors, Inc., a newly-organized, wholly-owned subsidiary of
Barnett Bank, N.A. which, in turn, is a wholly-owned subsidiary of Barnett
Banks, Inc., assumed the investment advisory responsibilities of Barnett Banks
Trust Company, N.A. for each of the Funds on the terms and conditions stated in
the Prospectus. This change did not involve a change in control or management of
the investment adviser. Barnett Capital Advisors, Inc. maintains offices at 9000
Southside Boulevard, Building 100, Jacksonville, Florida 32256.
THIS SUPPLEMENT IS DATED AUGUST 30, 1996.
EMD-0104
4
<PAGE>
EMERALD FUNDS
EMERALD EQUITY FUND
EMERALD SMALL CAPITALIZATION FUND
EMERALD BALANCED FUND
EMERALD MANAGED BOND FUND
EMERALD PRIME FUND
INSTITUTIONAL SHARES
SUPPLEMENT TO PROSPECTUS DATED APRIL 1, 1996
(AS SUPPLEMENTED AND REDATED AUGUST 30, 1996)
The following information has been added to the section entitled "Summary of
Expenses -- Financial Highlights":
The following unaudited information for Institutional Shares of the
Funds has been derived from the semi-annual financial statements
incorporated into the Statement of Additional Information. This
financial information should be read together with those financial
statements.
<PAGE>
FINANCIAL HIGHLIGHTS FOR AN INSTITUTIONAL SHARE OF EACH FUND OUTSTANDING
THROUGHOUT THE PERIOD INDICATED:
<TABLE>
<CAPTION>
SMALL
CAPITALIZATION BALANCED MANAGED
EQUITY FUND FUND FUND BOND FUND PRIME FUND
----------- -------------- ----------- ----------- -----------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED ENDED
5/31/96 5/31/96 5/31/96 5/31/96 5/31/96
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- -------------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD... $ 14.63 $ 12.78 $ 11.91 $ 10.55 $ 1.0002
----------- -------------- ----------- ----------- -----------
Income (loss) from investment
operations:
Net investment income (loss)......... 0.04 (0.04) 0.19 0.33 0.0262
Net realized and unrealized gains
(losses) on securities.............. 1.52 2.83 0.64 (0.46) 0.0000
----------- -------------- ----------- ----------- -----------
Total income (loss) from investment
operations.......................... 1.56 2.79 0.83 (0.13) 0.0262
----------- -------------- ----------- ----------- -----------
Less dividends and distributions:
Dividends from net investment
income.............................. (0.04) (0.00) (0.19) (0.33) (0.0262)
Dividends in excess of net investment
income.............................. (0.00) (0.00) (0.00) (0.10) (0.0000)
Distributions from net realized gains
on securities....................... (1.29) (1.00) (0.22) (0.00) (0.0002)
----------- -------------- ----------- ----------- -----------
Total dividends and distributions.... (1.33) (1.00) (0.41) (0.43) (0.0264)
----------- -------------- ----------- ----------- -----------
Net change in net asset value.......... 0.23 1.79 0.42 (0.56) (0.0002)
----------- -------------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD......... $ 14.86 $ 14.57 $ 12.33 $ 9.99 $ 1.0000
----------- -------------- ----------- ----------- -----------
----------- -------------- ----------- ----------- -----------
Total return........................... 11.82%++ 23.38%++ 7.15%++ (1.33%)++ 2.67%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)..... $200,172 $124,559 $ 79,231 $ 69,097 $645,795
Ratio of expenses to average net
assets.............................. 0.82%+ 1.36%+ 0.53%+ 0.45%+ 0.38%+
Ratio of net investment income (loss)
to average net assets............... 0.52%+ (0.77%)+ 3.19%+ 6.41%+ 5.23%+
Ratio of expenses to average net
assets*............................. (a) (a) 0.93%+ 0.72%+ 0.38%+
Ratio of net investment income to
average net assets*................. (a) (a) 2.79%+ 6.14%+ 5.23%+
Portfolio turnover................... 47% 147% 48% 50% --
Average commission rate paid (b)..... $ 0.0517 $ 0.0426 $ 0.0470 -- --
</TABLE>
* During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
(a) There were no waivers or reimbursements during the period.
(b) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
+ Annualized.
++ Unannualized.
2
<PAGE>
INVESTMENT ADVISER -- ADDITIONAL INFORMATION. Effective June 29, 1996
Barnett Capital Advisors, Inc., a newly-organized, wholly-owned subsidiary of
Barnett Bank, N.A. which, in turn, is a wholly-owned subsidiary of Barnett
Banks, Inc., assumed the investment advisory responsibilities of Barnett Banks
Trust Company, N.A. for each of the Funds on the terms and conditions stated in
the Prospectus. This change did not involve a change in control or management of
the investment adviser. Barnett Capital Advisors, Inc. maintains offices at 9000
Southside Boulevard, Building 100, Jacksonville, Florida 32256.
THIS SUPPLEMENT IS DATED AUGUST 30, 1996.
EMD-0103
3
<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 PRIME FUND
EMERALD TREASURY FUND
INSTITUTIONAL SHARES
SUPPLEMENT TO PROSPECTUS DATED APRIL 1, 1996
(AS SUPPLEMENTED AND REDATED AUGUST 30, 1996)
The following information has been added to the section entitled "Summary of
Expenses -- Financial Highlights":
The following unaudited information for Institutional Shares of the
Funds has been derived from the semi-annual financial statements
incorporated into the Statement of Additional Information. This
financial information should be read together with those financial
statements.
<PAGE>
FINANCIAL HIGHLIGHTS FOR AN INSTITUTIONAL SHARE OF EACH FUND OUTSTANDING
THROUGHOUT THE PERIOD INDICATED:
<TABLE>
<CAPTION>
SMALL
EQUITY INTERNATIONAL CAPITALIZATION BALANCED
EQUITY FUND VALUE FUND EQUITY FUND FUND FUND
----------- ----------- ------------- -------------- -----------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS PERIOD PERIOD SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED ENDED
5/31/96 5/31/96* 5/31/96* 5/31/96 5/31/96
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ----------- ------------- -------------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD............................ $ 14.63 $ 10.00 $ 10.00 $ 12.78 $ 11.91
----------- ----------- ------------- -------------- -----------
Income (loss) from investment
operations:
Net investment income............ 0.04 0.13 0.09 (0.04) 0.19
Net realized and unrealized gains
(losses) on securities.......... 1.52 0.81 0.57 2.83 0.64
----------- ----------- ------------- -------------- -----------
Total income from investment
operations...................... 1.56 0.94 0.66 2.79 0.83
----------- ----------- ------------- -------------- -----------
Less dividends and distributions:
Dividends from net investment
income.......................... (0.04) (0.13) (0.01) (0.00) (0.19)
Distributions from net realized
gains on securities............. (1.29) (0.00) (0.00) (1.00) (0.22)
----------- ----------- ------------- -------------- -----------
Total dividends and
distributions................... (1.33) (0.13) (0.01) (1.00) (0.41)
----------- ----------- ------------- -------------- -----------
Net change in net asset value...... 0.23 0.81 0.65 1.79 0.42
----------- ----------- ------------- -------------- -----------
NET ASSET VALUE, END OF PERIOD..... $ 14.86 $ 10.81 $ 10.65 $ 14.57 $ 12.33
----------- ----------- ------------- -------------- -----------
----------- ----------- ------------- -------------- -----------
Total return....................... 11.82%++ 9.42%++ 6.56%++ 23.38%++ 7.15%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s).......................... $200,172 $ 2,162 $ 2,147 $124,559 $79,231
Ratio of expenses to average net
assets.......................... 0.82%+ 0.00%+ 0.00%+ 1.36%+ 0.53%+
Ratio of net investment income
(loss) to average net assets.... 0.52%+ 2.87%+ 1.86%+ (0.77%)+ 3.19%+
Ratio of expenses to average net
assets**........................ (a) 6.46%+ 7.22%+ (a) 0.93%+
Ratio of net investment income
(loss) to average net
assets**........................ (a) (3.59%)+ (5.36%)+ (a) 2.79%+
Portfolio turnover............... 47% 8% 1% 147% 48%
Average commission rate paid
(b)............................. $ 0.0517 $0.0877 $0.0902 $ 0.0426 $0.0470
</TABLE>
* For the period December 27, 1995 (commencement of operations) through May
31, 1996.
** During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
(a) There were no waivers or reimbursements during the period.
(b) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
+ Annualized.
++ Unannualized.
2
<PAGE>
FINANCIAL HIGHLIGHTS FOR AN INSTITUTIONAL SHARE OF EACH FUND OUTSTANDING
THROUGHOUT THE PERIOD INDICATED:
<TABLE>
<CAPTION>
U.S.
SHORT-TERM GOVERNMENT
FIXED SECURITIES MANAGED TREASURY
INCOME FUND FUND BOND FUND PRIME FUND FUND
----------- ---------- ----------- ----------- -----------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED ENDED
5/31/96 5/31/96 5/31/96 5/31/96 5/31/96
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 10.15 $ 10.36 $ 10.55 $ 1.0002 $ 0.9996
----------- ---------- ----------- ----------- -----------
Income (loss) from investment
operations:
Net investment income................. 0.30 0.35 0.33 0.0262 0.0249
Net realized and unrealized gains
(losses) on securities............... (0.21) (0.38) (0.46) 0.0000 (0.0002)
----------- ---------- ----------- ----------- -----------
Total income (loss) from investment
operations........................... 0.09 (0.03) (0.13) 0.0262 0.0247
----------- ---------- ----------- ----------- -----------
Less dividends and distributions:
Dividends from net investment
income............................... (0.30) (0.32) (0.33) (0.0262) (0.0249)
Dividends in excess of net investment
income............................... (0.00) (0.00) (0.10) (0.0000) (0.0000)
Distributions from net realized gains
on securities........................ (0.03) (0.00) (0.00) (0.0002) (0.0000)
----------- ---------- ----------- ----------- -----------
Total dividends and distributions..... (0.33) (0.32) (0.43) (0.0264) (0.0249)
----------- ---------- ----------- ----------- -----------
Net change in net asset value........... (0.24) (0.35) (0.56) (0.0002) (0.0002)
----------- ---------- ----------- ----------- -----------
NET ASSET VALUE, END OF PERIOD.......... $ 9.91 $ 10.01 $ 9.99 $ 1.0000 $ 0.9994
----------- ---------- ----------- ----------- -----------
----------- ---------- ----------- ----------- -----------
Total return.......................... 0.91%++ (0.34%)++ (1.33%)++ 2.67%++ 2.52%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)...... $17,272 $32,588 $69,097 $645,795 $236,090
Ratio of expenses to average net
assets............................... 0.43%+ 0.71%+ 0.45%+ 0.38%+ 0.40%+
Ratio of net investment income to
average net assets................... 6.00% 6.62%+ 6.41%+ 5.23%+ 4.99%+
Ratio of expenses to average net
assets*.............................. 1.21%+ 0.72%+ 0.72%+ 0.38%+ 0.41%+
Ratio of net investment income to
average net assets*.................. 5.22%+ 6.61%+ 6.14%+ 5.23%+ 4.98%+
Portfolio turnover.................... 19% 20% 50% -- --
</TABLE>
* During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
+ Annualized.
++ Unannualized.
3
<PAGE>
INVESTMENT ADVISER -- ADDITIONAL INFORMATION. For the period ended May 31,
1996, all investment advisory fees payable by the Equity Value Fund and
International Equity Fund were waived.
Effective June 29, 1996 Barnett Capital Advisors, Inc., a newly-organized,
wholly-owned subsidiary of Barnett Bank, N.A. which, in turn, is a wholly-owned
subsidiary of Barnett Banks, Inc., assumed the investment advisory
responsibilities of Barnett Banks Trust Company, N.A. for each of the Funds on
the terms and conditions stated in the Prospectus. This change did not involve a
change in control or management of the investment adviser. Barnett Capital
Advisors, Inc. maintains offices at 9000 Southside Boulevard, Building 100,
Jacksonville, Florida 32256.
* * *
Effective August 19, 1996, Brandes Investment Partners, L.P. ("Brandes")
became 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 provides 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 receives
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, became 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, became the Adviser's "Sub-Advisory Liaison." In such capacity, Mr.
Bryant will oversee the provision of sub-investment advisory services by
Brandes. Mr. Bryant has served as an Institutional Portfolio Manager for the
Adviser for the past seven years.
* * *
Effective August 31, 1996, Jeffrey A. Greenert will assume responsibility
for the day-to-day management of the Short-Term Fixed Income Fund. Mr. Greenert
joined Barnett in 1985 and he currently serves as a fixed income portfolio
manager and analyst and is a member of the Adviser's Fixed Income Strategy
Committee.
Effective August 31, 1996, Margaret L. Moore will assume responsibility for
the day-to-day management of the Florida Tax-Exempt Fund. Ms. Moore joined
Barnett in 1991 from First Florida Bank, N.A. where she was a Fixed Income
Trader for individual trust accounts for five years. Ms. Moore currently serves
as a tax-exempt investment manager for the Adviser and is a member of the
Adviser's Fixed Income Strategy Committee.
THIS SUPPLEMENT IS DATED AUGUST 30, 1996.
EMD-0101
4
<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 TO PROSPECTUS DATED APRIL 1, 1996
(AS SUPPLEMENTED AND REDATED AUGUST 30, 1996)
The following information has been added to the section entitled "Summary of
Expenses -- Financial Highlights":
The following unaudited information for Institutional Shares of the
Funds has been derived from the semi-annual financial statements
incorporated into the Statement of Additional Information. This
financial information should be read together with those financial
statements.
<PAGE>
FINANCIAL HIGHLIGHTS FOR AN INSTITUTIONAL SHARE OF EACH FUND OUTSTANDING
THROUGHOUT THE PERIOD INDICATED:
<TABLE>
<CAPTION>
SMALL
EQUITY INTERNATIONAL CAPITALIZATION BALANCED
EQUITY FUND VALUE FUND EQUITY FUND FUND FUND
----------- ---------- ------------- -------------- -----------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS PERIOD PERIOD SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED ENDED
5/31/96 5/31/96* 5/31/96* 5/31/96 5/31/96
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ---------- ------------- -------------- -----------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF
PERIOD....................... $ 14.63 $ 10.00 $ 10.00 $ 12.78 $ 11.91
----------- ---------- ------------- -------------- -----------
Income (loss) from investment
operations:
Net investment income
(loss)..................... 0.04 0.13 0.09 (0.04) 0.19
Net realized and unrealized
gains on securities........ 1.52 0.81 0.57 2.83 0.64
----------- ---------- ------------- -------------- -----------
Total income from investment
operations................. 1.56 0.94 0.66 2.79 0.83
----------- ---------- ------------- -------------- -----------
Less dividends and
distributions:
Dividends from net
investment income.......... (0.04) (0.13) (0.01) (0.00) (0.19)
Distributions from net
realized gains on
securities................. (1.29) (0.00) (0.00) (1.00) (0.22)
----------- ---------- ------------- -------------- -----------
Total dividends and
distributions.............. (1.33) (0.13) (0.01) (1.00) (0.41)
----------- ---------- ------------- -------------- -----------
Net change in net asset
value........................ 0.23 0.81 0.65 1.79 0.42
----------- ---------- ------------- -------------- -----------
NET ASSET VALUE, END OF
PERIOD....................... $ 14.86 $ 10.81 $ 10.65 $ 14.57 $ 12.33
----------- ---------- ------------- -------------- -----------
----------- ---------- ------------- -------------- -----------
Total return.................. 11.82%++ 9.42%++ 6.56%++ 23.38%++ 7.15%++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000s)..................... $200,172 $ 2,162 $ 2,147 $124,559 $79,231
Ratio of expenses to average
net assets................. 0.82%+ 0.00%+ 0.00%+ 1.36%+ 0.53%+
Ratio of net investment
income (loss) to average
net assets................. 0.52%+ 2.87%+ 1.86%+ (0.77%)+ 3.19%+
Ratio of expenses to average
net assets**............... (a) 6.46%+ 7.22%+ (a) 0.93%+
Ratio of net investment
income (loss) to average
net assets**............... (a) (3.59%)+ (5.36%)+ (a) 2.79%+
Portfolio turnover.......... 47% 8% 1% 147% 48%
Average commission rate paid
(b)........................ $ 0.0517 $0.0877 $0.0902 $ 0.0426 $0.0470
</TABLE>
* For the period December 27, 1995 (commencement of operations) through May
31, 1996.
** During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
(a) There were no waivers or reimbursements during the period.
(b) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold by the
Fund for which commissions were charged.
+ Annualized.
++ Unannualized.
2
<PAGE>
FINANCIAL HIGHLIGHTS FOR AN INSTITUTIONAL SHARE OF EACH FUND OUTSTANDING
THROUGHOUT THE PERIOD INDICATED:
<TABLE>
<CAPTION>
U.S.
SHORT-TERM GOVERNMENT FLORIDA
FIXED SECURITIES MANAGED TAX-EXEMPT
INCOME FUND FUND BOND FUND FUND
----------- ---------- ----------- -----------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS SIX MONTHS SIX MONTHS SIX MONTHS
ENDED ENDED ENDED ENDED
5/31/96 5/31/96 5/31/96 5/31/96
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD.... $ 10.15 $ 10.36 $ 10.55 $ 11.09
----------- ---------- ----------- -----------
Income (loss) from investment
operations:
Net investment income................. 0.30 0.35 0.33 0.29
Net realized and unrealized gains
(losses) on securities............... (0.21) (0.38) (0.46) (0.52)
----------- ---------- ----------- -----------
Total income (loss) from investment
operations........................... 0.09 (0.03) (0.13) (0.23)
----------- ---------- ----------- -----------
Less dividends and distributions:
Dividends from net investment
income............................... (0.30) (0.32) (0.33) (0.29)
Dividends in excess of net investment
income............................... (0.00) (0.00) (0.10) (0.00)
Distributions from net realized gains
on securities........................ (0.03) (0.00) (0.00) (0.00)
----------- ---------- ----------- -----------
Total dividends and distributions..... (0.33) (0.32) (0.43) (0.29)
----------- ---------- ----------- -----------
Net change in net asset value........... (0.24) (0.35) (0.56) (0.52)
----------- ---------- ----------- -----------
NET ASSET VALUE, END OF PERIOD.......... $ 9.91 $ 10.01 $ 9.99 $ 10.57
----------- ---------- ----------- -----------
----------- ---------- ----------- -----------
Total return............................ 0.91%++ (0.34%)++ (1.33%)++ (2.17%)++
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s)...... $17,272 $32,588 $69,097 $32,733
Ratio of expenses to average net
assets............................... 0.43%+ 0.71%+ 0.45%+ 0.68%+
Ratio of net investment income to
average net assets................... 6.00%+ 6.62%+ 6.41%+ 5.34%+
Ratio of expenses to average net
assets*.............................. 1.21%+ 0.72%+ 0.72%+ 0.69%+
Ratio of net investment income to
average net assets*.................. 5.22%+ 6.61%+ 6.14%+ 5.33%+
Portfolio turnover.................... 19% 20% 50% 92%
</TABLE>
* During the period certain fees were voluntarily reduced and/or reimbursed.
If such voluntary fee reductions and/or reimbursement had not occurred, the
ratios would have been as indicated.
+ Annualized.
++ Unannualized.
3
<PAGE>
INVESTMENT ADVISER -- ADDITIONAL INFORMATION. For the period ended May 31,
1996, all investment advisory fees payable by the Equity Value Fund and
International Equity Fund were waived.
Effective June 29, 1996 Barnett Capital Advisors, Inc., a newly-organized,
wholly-owned subsidiary of Barnett Bank, N.A. which, in turn, is a wholly-owned
subsidiary of Barnett Banks, Inc., assumed the investment advisory
responsibilities of Barnett Banks Trust Company, N.A. for each of the Funds on
the terms and conditions stated in the Prospectus. This change did not involve a
change in control or management of the investment adviser. Barnett Capital
Advisors, Inc. maintains offices at 9000 Southside Boulevard, Building 100,
Jacksonville, Florida 32256.
* * *
Effective August 19, 1996, Brandes Investment Partners, L.P. ("Brandes")
became 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 provides 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 receives
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, became 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, became the Adviser's "Sub-Advisory Liaison." In such capacity, Mr.
Bryant will oversee the provision of sub-investment advisory services by
Brandes. Mr. Bryant has served as an Institutional Portfolio Manager for the
Adviser for the past seven years.
* * *
Effective August 31, 1996, Jeffrey A. Greenert will assume responsibility
for the day-to-day management of the Short-Term Fixed Income Fund. Mr. Greenert
joined Barnett in 1985 and he currently serves as a fixed income portfolio
manager and analyst and is a member of the Adviser's Fixed Income Strategy
Committee.
Effective August 31, 1996, Margaret L. Moore will assume responsibility for
the day-to-day management of the Florida Tax-Exempt Fund. Ms. Moore joined
Barnett in 1991 from First Florida Bank, N.A. where she was a Fixed Income
Trader for individual trust accounts for five years. Ms. Moore currently serves
as a tax-exempt investment manager for the Adviser and is a member of the
Adviser's Fixed Income Strategy Committee.
THIS SUPPLEMENT IS DATED AUGUST 30, 1996.
EMD-0102
4
