<PAGE>
EMERALD FUNDS
EMERALD SMALL CAPITALIZATION FUND
EMERALD MANAGED BOND FUND
INSTITUTIONAL SHARES FOR BARNETT EMPLOYEE SAVINGS & THRIFT (BEST) PLAN
SUPPLEMENT DATED JUNE 30, 1997
TO THE PROSPECTUS DATED APRIL 1, 1997
SMALL CAPITALIZATION FUND -- ADDITIONAL PORTFOLIO MANAGEMENT INFORMATION.
Martin E. LaPrade, CFA, has assumed co-responsibility with Dean McQuiddy,
CFA, for the day-to-day management of the Small Capitalization Fund. For
information regarding Mr. LaPrade's past business experience, see "The Business
of the Funds -- Fund Management" in the Prospectus.
MANAGED BOND FUND -- PORTFOLIO MATURITY.
The description of the Managed Bond Fund in the Prospectus is modified to
provide that there are no minimum or maximum limitations regarding the
dollar-weighted average portfolio maturity of the Managed Bond Fund. The Fund's
average portfolio maturity will change from time to time, and may be longer or
shorter than ten years in light of Barnett's views of prevailing market and
economic conditions.
MANAGED BOND FUND -- INVESTMENTS IN PREFERRED STOCKS.
The Managed Bond Fund can invest in both convertible and non-convertible
preferred stocks that meet the investment criteria and policies stated in the
Prospectus, and may have either a set maturity date or no maturity date.
EMD - 0183 BEST 697 SUP
<PAGE>
EMERALD FUNDS
EMERALD EQUITY VALUE FUND
EMERALD SMALL CAPITALIZATION FUND
EMERALD SHORT-TERM FIXED INCOME FUND
EMERALD U.S. GOVERNMENT SECURITIES FUND
EMERALD MANAGED BOND FUND
INSTITUTIONAL SHARES FOR QUALIFIED RETIREMENT PLANS
SUPPLEMENT DATED JUNE 30, 1997
TO THE PROSPECTUS DATED APRIL 1, 1997
EQUITY VALUE, SMALL CAPITALIZATION, SHORT-TERM FIXED INCOME AND U.S. GOVERNMENT
SECURITIES FUNDS -- ADDITIONAL PORTFOLIO MANAGEMENT INFORMATION.
Don W. Bryant, CFA, has assumed co-responsibility with Martin E. LaPrade,
CFA, for the day-to-day management of the Equity Value Fund. For information
regarding Mr. Bryant's past business experience, see "The Business of the Funds
- -- Fund Management" in the Prospectus.
Martin E. LaPrade, CFA, has assumed co-responsibility with Dean McQuiddy,
CFA, for the day-to-day management of the Small Capitalization Fund. For
information regarding Mr. LaPrade's past business experience, see "The Business
of the Funds -- Fund Management" in the Prospectus.
David Furfine has assumed co-responsibility with Jeffery A. Greenert for the
day-to-day management of the Short-Term Fixed Income Fund. Mr. Furfine joined
the Adviser in 1996 from Barnett Mortgage Company. Prior to joining Barnett
Mortgage Company in 1995, Mr. Furfine managed the hedging and trading desk for
Prudential Home Mortgage. He received his BS in Economics from the Wharton
School at the University of Pennsylvania. Mr. Furfine has 13 years of investment
experience.
Jeffery A. Greenert has assumed co-responsibility with Andrew Cantor, CFA,
for the day-to-day management of the U.S. Government Securities Fund. For
information regarding Mr. Greenert's past business experience, see "The Business
of the Funds -- Fund Management" in the Prospectus.
MANAGED BOND FUND -- PORTFOLIO MATURITY.
The description of the Managed Bond Fund in the Prospectus is modified to
provide that there are no minimum or maximum limitations regarding the
dollar-weighted average portfolio maturity of the Managed Bond Fund. The Fund's
average portfolio maturity will change from time to time, and may be longer or
shorter than ten years in light of Barnett's views of prevailing market and
economic conditions.
MANAGED BOND AND SHORT-TERM FIXED INCOME FUNDS -- INVESTMENTS IN PREFERRED
STOCKS.
The Managed Bond and Short-Term Fixed Income Funds can invest in both
convertible and non-convertible preferred stocks that meet the investment
criteria and policies stated in the Prospectus, and may have either a set
maturity date or no maturity date.
EMD - 0185 401K 697 SUP
<PAGE>
EMERALD FUNDS
EMERALD EQUITY VALUE FUND
EMERALD SMALL CAPITALIZATION FUND
EMERALD SHORT-TERM FIXED INCOME FUND
EMERALD U.S. GOVERNMENT SECURITIES FUND
EMERALD MANAGED BOND FUND
EMERALD FLORIDA TAX-EXEMPT FUND
INSTITUTIONAL SHARES FOR BARNETT PRIVATE CLIENT CUSTOMERS
SUPPLEMENT DATED JUNE 30, 1997
TO THE PROSPECTUS DATED APRIL 1, 1997
EQUITY VALUE, FLORIDA TAX-EXEMPT, SMALL CAPITALIZATION, SHORT-TERM FIXED INCOME
AND U.S. GOVERNMENT SECURITIES FUNDS -- ADDITIONAL PORTFOLIO MANAGEMENT
INFORMATION.
Don W. Bryant, CFA, has assumed co-responsibility with Martin E. LaPrade,
CFA, for the day-to-day management of the Equity Value Fund. For information
regarding Mr. Bryant's past business experience, see "The Business of the Funds
- -- Fund Management" in the Prospectus.
Douglas Byrne has co-responsibility with Margaret L. Moore for the
day-to-day management of the Florida Tax-Exempt Fund. Mr. Byrne joined the
Adviser in 1987 and plays an integral role as part of the fixed income team. Mr.
Byrne received his BS and MBA in Finance from Pacific Western University.
Martin E. LaPrade, CFA, has assumed co-responsibility with Dean McQuiddy,
CFA, for the day-to-day management of the Small Capitalization Fund. For
information regarding Mr. LaPrade's past business experience, see "The Business
of the Funds -- Fund Management" in the Prospectus.
David Furfine has assumed co-responsibility with Jeffery A. Greenert for the
day-to-day management of the Short-Term Fixed Income Fund. Mr. Furfine joined
the Adviser in 1996 from Barnett Mortgage Company. Prior to joining Barnett
Mortgage Company in 1995, Mr. Furfine managed the hedging and trading desk for
Prudential Home Mortgage. He received his BS in Economics from the Wharton
School at the University of Pennsylvania. Mr. Furfine has 13 years of investment
experience.
Jeffery A. Greenert has assumed co-responsibility with Andrew Cantor, CFA,
for the day-to-day management of the U.S. Government Securities Fund. For
information regarding Mr. Greenert's past business experience, see "The Business
of the Funds -- Fund Management" in the Prospectus.
MANAGED BOND FUND -- PORTFOLIO MATURITY.
The description of the Managed Bond Fund in the Prospectus is modified to
provide that there are no minimum or maximum limitations regarding the
dollar-weighted average portfolio maturity of the Managed Bond Fund. The Fund's
average portfolio maturity will change from time to time, and may be longer or
shorter than ten years in light of Barnett's views of prevailing market and
economic conditions.
FLORIDA TAX-EXEMPT FUND -- PORTFOLIO MATURITY.
The description of the Florida Tax-Exempt Fund in the Prospectus is modified
to delete the following language: "The Adviser expects that under normal
conditions the Fund will invest primarily in obligations that have remaining
maturities of more than ten years." The Fund may invest, without limitation, in
securities with maturities that are longer or shorter than ten years in light of
Barnett's view of prevailing market and economic conditions.
MANAGED BOND AND SHORT-TERM FIXED INCOME FUNDS -- INVESTMENTS IN PREFERRED
STOCKS.
The Managed Bond and Short-Term Fixed Income Funds can invest in both
convertible and non-convertible preferred stocks that meet the investment
criteria and policies stated in the Prospectus, and may have either a set
maturity date or no maturity date.
EMD - 0184 PC 697 SUP
<PAGE>
EMERALD FUNDS
EMERALD EQUITY VALUE FUND
EMERALD SMALL CAPITALIZATION FUND
EMERALD SHORT-TERM FIXED INCOME FUND
EMERALD U.S. GOVERNMENT SECURITIES FUND
EMERALD MANAGED BOND FUND
EMERALD FLORIDA TAX-EXEMPT FUND
RETAIL SHARES
SUPPLEMENT DATED JUNE 30, 1997
TO THE PROSPECTUS DATED APRIL 1, 1997
EQUITY VALUE, FLORIDA TAX-EXEMPT, SMALL CAPITALIZATION, SHORT-TERM FIXED INCOME
AND U.S. GOVERNMENT SECURITIES FUNDS -- ADDITIONAL PORTFOLIO MANAGEMENT
INFORMATION.
Don W. Bryant, CFA, has assumed co-responsibility with Martin E. LaPrade,
CFA, for the day-to-day management of the Equity Value Fund. For information
regarding Mr. Bryant's past business experience, see "The Business of the Funds
- -- Fund Management" in the Prospectus.
Douglas Byrne has co-responsibility with Margaret L. Moore for the
day-to-day management of the Florida Tax-Exempt Fund. Mr. Byrne joined the
Adviser in 1987 and plays an integral role as part of the fixed income team. Mr.
Byrne received his BS and MBA in Finance from Pacific Western University.
Martin E. LaPrade, CFA, has assumed co-responsibility with Dean McQuiddy,
CFA, for the day-to-day management of the Small Capitalization Fund. For
information regarding Mr. LaPrade's past business experience, see "The Business
of the Funds -- Fund Management" in the Prospectus.
David Furfine has assumed co-responsibility with Jeffery A. Greenert for the
day-to-day management of the Short-Term Fixed Income Fund. Mr. Furfine joined
the Adviser in 1996 from Barnett Mortgage Company. Prior to joining Barnett
Mortgage Company in 1995, Mr. Furfine managed the hedging and trading desk for
Prudential Home Mortgage. He received his BS in Economics from the Wharton
School at the University of Pennsylvania. Mr. Furfine has 13 years of investment
experience.
Jeffery A. Greenert has assumed co-responsibility with Andrew Cantor, CFA,
for the day-to-day management of the U.S. Government Securities Fund. For
information regarding Mr. Greenert's past business experience, see "The Business
of the Funds -- Fund Management" in the Prospectus.
MANAGED BOND FUND -- PORTFOLIO MATURITY.
The description of the Managed Bond Fund in the Prospectus is modified to
provide that there are no minimum or maximum limitations regarding the
dollar-weighted average portfolio maturity of the Managed Bond Fund. The Fund's
average portfolio maturity will change from time to time, and may be longer or
shorter than ten years in light of Barnett's views of prevailing market and
economic conditions.
FLORIDA TAX-EXEMPT FUND -- PORTFOLIO MATURITY.
The description of the Florida Tax-Exempt Fund in the Prospectus is modified
to delete the following language: "The Adviser expects that under normal
conditions the Fund will invest primarily in obligations that have remaining
maturities of more than ten years." The Fund may invest, without limitation, in
securities with maturities that are longer or shorter than ten years in light of
Barnett's view of prevailing market and economic conditions.
MANAGED BOND AND SHORT-TERM FIXED INCOME FUNDS -- INVESTMENT IN PREFERRED
STOCKS.
The Managed Bond and Short-Term Fixed Income Fund can invest in both
convertible and non-convertible preferred stocks that meet the investment
criteria and policies stated in the Prospectus, and may have either a set
maturity date or no maturity date.
EMD - 0182 RET 697 SUP
