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Rule 497(e)
Registration No. 33-21489
1ST SOURCE MONOGRAM FUNDS
1ST SOURCE MONOGRAM DIVERSIFIED EQUITY FUND
1ST SOURCE MONOGRAM INCOME EQUITY FUND
1ST SOURCE MONOGRAM SPECIAL EQUITY FUND
1ST SOURCE MONOGRAM INCOME FUND
SUPPLEMENT DATED OCTOBER 14, 1998,
TO PROSPECTUS DATED OCTOBER 31, 1997, AS SUPPLEMENTED MAY 20, 1998
Capitalized terms used in this Supplement have the meaning assigned
to them in the Prospectus.
The Group has entered into an Agreement and Plan of Reorganization and
Liquidation, dated as of July 23, 1998, as amended as of September 30, 1998 (the
"Plan"), with The Coventry Group, a Massachusetts business trust ("Coventry").
Pursuant to the Plan, Coventry's 1st Source Monogram Diversified Equity Fund,
Coventry's 1st Source Monogram Income Equity Fund, Coventry's 1st Source
Monogram Special Equity Fund and Coventry's 1st Source Monogram Income Fund,
each a separate series of Coventry (collectively, the "Acquiring Funds") would
acquire all of the assets of the Diversified Equity Fund, the Income Equity
Fund, the Special Equity Fund and the Income Fund, respectively (collectively,
the "Acquired Funds"), in exchange for the assumption of all of the
corresponding Acquired Fund's liabilities and a number of full and fractional
shares of the corresponding Acquiring Fund having an aggregate net asset value
equal to the Acquired Fund's net assets (the "Reorganization").
The Reorganization is subject to certain regulatory approvals and to
approval by the shareholders of the Acquired Funds at a Special Shareholders
Meeting currently expected to be held on or about October 16, 1998. If the
shareholders approve the Reorganization, it is expected that the Reorganization
will be effected on or about October 23, 1998; however, the Reorganization may
be effected on such earlier or later date as the Group and Coventry may
determine. There can be no assurance that the Reorganization will take place
when or as currently proposed.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH
THE PROSPECTUS FOR FUTURE REFERENCE
