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AMSOUTH MUTUAL FUNDS
SUPPLEMENT DATED AUGUST 1, 1997 TO
THE STATEMENT OF ADDITIONAL INFORMATION DATED MARCH 17, 1997
Capitalized terms used in this Supplement and not defined have the
meaning assigned to them in the Statement of Additional Information.
The Statement of Additional Information is hereby amended as follows:
1. The new address for the TRANSFER AGENT IS AMSOUTH MUTUAL FUNDS,
PO BOX 182733, COLUMBUS, OH 43218-2733.
2. The section under INVESTMENT SUB-ADVISOR on page B-31 is hereby
supplemented as follows:
Peachtree Asset Management ("Peachtree") serves as investment
sub-adviser to the Capital Growth Fund, pursuant to a
Sub-Advisory Agreement dated as of July 16, 1997 between
AmSouth and Peachtree ("Sub-Advisory Agreement").
Unless sooner terminated, the Sub-Advisory Agreement shall
continue with respect to the Capital Growth Fund until January
31, 1998 and shall continue in effect for successive one year
periods if such continuance is approved at least annually by the
Board of Trustees of the Trust or by vote of the holders of a
majority of the outstanding voting Shares of the Fund (as
defined under "GENERAL INFORMATION" - Miscellaneous" in the
prospectus of the Capital Appreciation Funds) and a majority of
the Trustees who are not parties to the Sub-Advisory Agreement
by vote cast in person at a meeting called for such purpose.
This Agreement may be terminated with respect to the Fund by the
Trust at any time without the payment of any penalty by the
Board of Trustees of the Trust, by vote of the holders of a
majority of the outstanding voting securities of the Fund, or by
the Investment Advisor or Sub-Advisor on 60 days written notice.
This Agreement will also immediately terminate in the event of
its assignment.
3. The paragraph under CUSTODIAN on page B-39 is hereby amended to
read as follows:
AmSouth became Custodian for the Trust on April 17, 1997. The
Custodian's responsibilities include safeguarding and
controlling the Trust's cash and securities, handling the
receipt and delivery of securities, and collecting interest and
dividends on the Trust's investments. Pursuant to the Custodian
Agreement with the Trust, the Custodian receives compensation
from each Fund for such services in an amount equal to an
asset-based fee.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE
STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE
AS1SAI5080197
