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AMSOUTH FUNDS
SUPPLEMENT DATED DECEMBER 15, 2000
TO THE PROSPECTUS DATED DECEMBER 1, 2000
THIS SUPPLEMENT PROVIDES INFORMATION UPDATING THE DISCUSSIONS OF THE
PRINCIPAL INVESTMENT STRATEGIES OF THE BALANCED FUND, THE RETURN TABLE OF THE
FLORIDA TAX-EXEMPT FUND, AND THE PORTFOLIO MANAGER OF THE BALANCED FUND AND THE
VALUE FUND. PLEASE KEEP THIS SUPPLEMENT AND READ IT TOGETHER WITH THE
PROSPECTUS.
I. BALANCED FUND
A. Under the section entitled "Principal Investment Strategies" on page
25, the third sentence of the second paragraph has been deleted and replaced in
its entirety with the following:
The Fund's equity investments consist of common stocks of companies that the
portfolio manager believes are undervalued and have a favorable outlook or are
reasonably priced with the potential to produce above-average earnings growth.
B. Under the same section, the following sentence is added to the end
of the third paragraph:
In addition, the portfolio manager may identify companies with a history of
above-average growth or companies that are expected to enter periods of
above-average growth or are positioned in emerging growth industries.
C. Under the section entitled "Principal Investment Risks" on page 25,
the description of "Investment Style Risk" has been deleted and replaced in its
entirety with the following:
The possibility that the market segments on which the equity portion of this
Fund focuses - value and growth stocks - will underperform other kinds of
investments or market averages.
II. FLORIDA TAX-EXEMPT FUND
A. In the return table on page 67, the one-year average annual return
for the Merrill Lynch 3-7 Year Municipal Bond Index is deleted and replaced by
0.66%.
III. BALANCED FUND AND VALUE FUND
A. Under the section entitled "Portfolio Managers" on page 107, the
first paragraph entitled "Balanced Fund and Value Fund" is deleted in its
entirety.
SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUS FOR FUTURE
REFERENCE.
