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Rule 497(e)
File No. 811-5545
Registration No. 33-21489
RIVERSIDE CAPITAL MONEY MARKET FUND
RIVERSIDE CAPITAL VALUE EQUITY FUND
RIVERSIDE CAPITAL FIXED INCOME FUND
RIVERSIDE CAPITAL TENNESSEE MUNICIPAL OBLIGATIONS FUND
RIVERSIDE CAPITAL LOW DURATION GOVERNMENT SECURITIES FUND
RIVERSIDE CAPITAL GROWTH FUND
SUPPLEMENT DATED OCTOBER 31, 1997
TO PROSPECTUS DATED OCTOBER 31, 1997
Capitalized terms used in this Supplement have the meaning assigned to them
in the Prospectus.
On Monday, October 20, 1997, the Board of Trustees of the Group approved a
new investment advisory agreement with the Adviser with respect to the Money
Market, Value, Fixed Income and Growth Funds. The proposed new investment
advisory agreement would permit the Adviser to hire one or more sub-investment
adviser to manage those Funds and would increase the investment advisory fees
payable by the Value Fund and the Growth Fund. On that date, the Board also
approved sub-investment advisory agreements between the Adviser and Morgan
Stanley Asset Management, Inc. ("MSAM") and Miller Anderson & Sherrerd LLP
("Miller Anderson") whereby the Adviser would retain MSAM to manage day-to-day
the portfolios of the Money Market and Growth Funds and Miller Anderson to
manage day-to-day the portfolios of the Value and Fixed Income Funds. The new
investment advisory agreement and sub-investment advisory agreements are being
submitted to shareholders of the Money Market Fund, the Value Fund, the Fixed
Income Fund and the Growth Fund for their approval at a meeting to be held
during December, 1997, in accordance with sec.15 of the 1940 Act. If
shareholders of those Funds approve the new agreements, it is anticipated that
such agreements, including the change in the investment advisory fees, will take
effect as of January 1, 1998.
Effective October 31, 1997, the Group will no longer accept orders for the
purchase of Shares of the Government Securities Fund. It is anticipated that
such Fund will be liquidated and its affairs wound down during November, 1997.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUS
FOR FUTURE REFERENCE
