<PAGE>
Filed pursuant to
Rule 497(e)
Registration Nos.
33-25716
811-5697
[GRAPHIC]
DEM EQUITY FUND
DEM INDEX FUND
DEM MULTI-MANAGER BOND FUND
DEM MULTI-MANAGER EQUITY FUND
INVESTOR SHARES
Supplement dated April 12, 2000
to the Prospectus dated February 29, 2000
THE INFORMATION SET FORTH UNDER THE CAPTION "DEM EQUITY FUND - FEES AND
EXPENSES" IS REVISED BY DELETING SUCH INFORMATION IN ITS ENTIRETY AND INSERTING
IN LIEU THEREOF THE FOLLOWING:
FEES AND EXPENSES
The following table describes the fees and expenses you would pay if
you buy and hold shares of the fund. The expenses shown and fees set forth in
the table are for the fiscal year ended October 31, 1999.
ANNUAL FUND OPERATING EXPENSES
<TABLE>
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<S> <C>
SHAREHOLDER FEES (FEES PAID DIRECTLY FROM YOUR INVESTMENT)
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 4.75%
Maximum Deferred Sales Charge (Load) -0-%
Maximum Sales Charge (Load) Imposed on Reinvested Dividends and other Distributions -0-%
Redemption Fee(1) -0-%
ANNUAL FUND OPERATING EXPENSES (EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
Management Fee .90%
Distribution (12b-1) Fee(2) .75%
Other Expenses(3) 1.85%
Total Annual Fund Operating Expenses(3) 3.50%
Expense Reimbursement(3) (1.50)%
Net Expenses 2.00%
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</TABLE>
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(1) The fund imposes a $9.00 charge only on redemptions by wire transfer.
(2) The Chapman Co., the fund's distributor, receives a fee for stockholder
servicing and distribution services at an annual rate of up to a total of .75%
(up to .25% service fee and .50% distribution fee) of the average daily net
assets of the fund attributable to the Investor Shares offered by this
Prospectus. The Chapman Co. has voluntarily limited such fee to an aggregate of
.50% (up to .25% service fee and .25% distribution fee) of average daily assets.
However, there is no guarantee that The Chapman Co. will continue to voluntarily
limit the amount of such fee beyond October 31, 2000.
(3) CCM, the fund's investment advisor, has contractually agreed to limit
the total annual operating expenses of the fund, solely attributable to the
Investor Shares offered by this Prospectus, to 2.00% of average daily net assets
effective March 17, 2000 until at least December 31, 2009. However, there is no
guarantee that CCM will contract to limit the total annual operating expenses of
the fund attributable to the Investor Shares beyond December 31, 2009.
Because of the 12b-1 fee, long-term shareholders may indirectly pay
more than the equivalent of the maximum permitted front-end sales charge.
EXAMPLE. The following table gives you a rough idea of how expense ratios may
translate into dollars and helps you to compare the cost of investing in the
fund with the cost of investing in other funds. Although your actual costs may
be higher or lower, the table shows expenses you would pay if operating expenses
remain the same, you invest $10,000, you earn a 5% annual return, and you hold
the investment for the following periods exclusive of any expense limitation.
<TABLE>
<CAPTION>
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INVESTOR SHARES
<S> <C>
1 Year* $668
3 Years* $1,073
5 Years* $1,502
10 Years* $2,692
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</TABLE>
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* The Chapman Co. has voluntarily limited its fees for stockholder
servicing and distribution services to an aggregate of .50% of average daily net
assets of the fund attributable to the Investor Shares until at least October
31, 2000. CCM, the fund's investment advisor, has contractually agreed to limit
the total annual operating expenses of the fund attributable to the Investor
shares to 2.00% of average daily net assets until at least December 31, 2009.
THIS EXAMPLE SHOULD NOT BE CONSIDERED TO REPRESENT ACTUAL EXPENSES OR
PERFORMANCE FROM THE PAST OR FOR THE FUTURE. ACTUAL FUTURE EXPENSES MAY BE
HIGHER OR LOWER THAN THOSE SHOWN.
Domestic Emerging Markets-Registered Trademark- and DEM-Registered Trademark-
are registered trademarks and the stylized C-Eagle Logo-TM-, DEfM Profile-TM-,
DEM Universe-TM-, DEM Company-TM- DEM Index-TM- and DEM Multi-Manager-TM- are
trademarks of Nathan A. Chapman, Jr.
