<PAGE>
BEA
INSTITUTIONAL FUNDS
INTERNATIONAL EQUITY FUND
EMERGING MARKETS EQUITY FUND
U.S. CORE EQUITY FUND
BALANCED FUND
U.S. CORE FIXED INCOME FUND
STRATEGIC GLOBAL FIXED INCOME FUND
HIGH YIELD FUND
MUNICIPAL BOND FUND
SHORT DURATION FUND
(INVESTMENT PORTFOLIOS OF THE RBB FUND, INC.)
SUPPLEMENT DATED MARCH 16, 1998
TO PROSPECTUS DATED DECEMBER 8, 1997
The second paragraph on page 18 of the Prospectus under the heading "Foreign
Currency Transactions" is replaced with the following:
The Funds may also enter into contracts to purchase and sell forward
foreign currency exchange contracts to seek to enhance total return. A
forward foreign currency exchange contract is a negotiated agreement to
exchange currency at a future time at a rate or rates that may be higher or
lower than those available on a "spot" (or cash) basis. A Fund may enter
into these contracts for purposes of increasing exposure to a foreign
currency or to shift exposure to foreign currency fluctuations from one
country to another. To the extent that such contracts are entered into to
enhance total return, they are considered speculative. If a Fund enters into
such a contract for any purpose, the Fund will be required to maintain cash
or liquid assets in an amount equal to the value of the Fund's total assets
committed to the consummation of the contract. The Funds will not invest
more than 50% of their respective total assets in such contracts for the
purpose of enhancing total return. There is no limit on the amount of assets
that the Funds may invest in such transactions for hedging purposes.
Currency exchange rates may fluctuate significantly over short periods
of time. They generally are determined by the forces of supply and demand in
the foreign exchange markets and the relative merits of investments in
different countries, actual or perceived changes in interest rates and other
complex factors as seen from an international perspective. Currency exchange
rates also can be affected unpredictably by intervention by U.S. or foreign
governments or central banks, or the failure to intervene, or by currency
controls or political developments in the United States or abroad. The
foreign currency market offers less protection against defaults in the
forward trading of currencies than is available when trading in currencies
occurs on an exchange. Since a forward currency contract is not guaranteed
by an exchange or clearinghouse, a default on the contract would deprive a
Fund of unrealized profits or force such Fund to cover its commitments for
purchase or resale, if any, at the current market price.
<PAGE>
BEA
INSTITUTIONAL FUNDS
INTERNATIONAL EQUITY FUND
EMERGING MARKETS EQUITY FUND
U.S. CORE EQUITY FUND
BALANCED FUND
U.S. CORE FIXED INCOME FUND
STRATEGIC GLOBAL FIXED INCOME FUND
HIGH YIELD FUND
MUNICIPAL BOND FUND
SHORT DURATION FUND
(INVESTMENT PORTFOLIOS OF THE RBB FUND, INC.)
SUPPLEMENT DATED MARCH 16, 1998
TO STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 8, 1997
The second sentence of the first full paragraph on page 18 of the Statement
of Additional Information is replaced with the following:
A Fund may enter into a forward contract and maintain a net exposure on such
contract only if (1) the consummation of the contract would not obligate a
Fund to deliver an amount of foreign currency in excess of the value of a
Fund's cash or liquid portfolio securities or (2) a Fund maintains cash or
liquid securities in the amount prescribed.
<PAGE>
BEA
ADVISOR FUNDS
INTERNATIONAL EQUITY FUND
EMERGING MARKETS EQUITY FUND
GLOBAL TELECOMMUNICATIONS FUND
HIGH YIELD FUND
(INVESTMENT PORTFOLIOS OF THE RBB FUND, INC.)
SUPPLEMENT DATED MARCH 16, 1998
TO PROSPECTUS DATED DECEMBER 8, 1997
The second paragraph on page P-11 of the Prospectus under the heading
"Foreign Currency Transactions" is replaced with the following:
The Funds may also enter into contracts to purchase and sell forward
foreign currency exchange contracts to seek to enhance total return. A
forward foreign currency exchange contract is a negotiated agreement to
exchange currency at a future time at a rate or rates that may be higher or
lower than those available on a "spot" (or cash) basis. A Fund may enter
into these contracts for purposes of increasing exposure to a foreign
currency or to shift exposure to foreign currency fluctuations from one
country to another. To the extent that such contracts are entered into to
enhance total return, they are considered speculative. If a Fund enters into
such a contract for any purpose, the Fund will be required to maintain cash
or liquid assets in an amount equal to the value of the Fund's total assets
committed to the consummation of the contract. The Funds will not invest
more than 50% of their respective total assets in such contracts for the
purpose of enhancing total return. There is no limit on the amount of assets
that the Funds may invest in such transactions for hedging purposes.
Currency exchange rates may fluctuate significantly over short periods
of time. They generally are determined by the forces of supply and demand in
the foreign exchange markets and the relative merits of investments in
different countries, actual or perceived changes in interest rates and other
complex factors as seen from an international perspective. Currency exchange
rates also can be affected unpredictably by intervention by U.S. or foreign
governments or central banks, or the failure to intervene, or by currency
controls or political developments in the United States or abroad. The
foreign currency market offers less protection against defaults in the
forward trading of currencies than is available when trading in currencies
occurs on an exchange. Since a forward currency contract is not guaranteed
by an exchange or clearinghouse, a default on the contract would deprive a
Fund of unrealized profits or force such Fund to cover its commitments for
purchase or resale, if any, at the current market price.
<PAGE>
BEA
ADVISOR FUNDS
INTERNATIONAL EQUITY FUND
EMERGING MARKETS EQUITY FUND
GLOBAL TELECOMMUNICATIONS FUND
HIGH YIELD FUND
(INVESTMENT PORTFOLIOS OF THE RBB FUND, INC.)
SUPPLEMENT DATED MARCH 16, 1998
TO STATEMENT OF ADDITIONAL INFORMATION DATED DECEMBER 8, 1997
The first full sentence on page 20 of the Statement of Additional
Information is replaced with the following:
A Fund may enter into a forward contract and maintain a net exposure on such
contract only if (1) the consummation of the contract would not obligate a
Fund to deliver an amount of foreign currency in excess of the value of a
Fund's cash or liquid portfolio securities or (2) a Fund maintains cash or
liquid securities in the amount prescribed.
