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M.S.D. & T. FUNDS, INC.
AFBA Five Star Shares
of the
Value Equity Fund
Intermediate Fixed Income Fund
Supplement dated June 6, 1997
to Prospectus dated September 30, 1996
Effective as of the close of business on June 6, 1997, AFBA Five Star
Shares of the Value Equity and Intermediate Fixed Income Funds will no longer be
offered to new investors. Existing shareholders may continue to purchase and
redeem AFBA Five Star Shares, and will continue to receive dividends and
distributions in additional AFBA Five Star Shares if they have so elected, until
August 8, 1997.
At the close of business on August 8, 1997, all outstanding AFBA Five
Star Shares of the Value Equity and Intermediate Fixed Income Funds will be
automatically exchanged for Institutional Shares of the Value Equity and
Intermediate Fixed Income Funds (the "Funds"), respectively, at net asset value.
No fee will be charged on the exchange. Copies of the Prospectus for
Institutional Shares of the Funds may be obtained by calling 1-800-551-2145, or
by writing M.S.D. & T. Funds, Inc., c/o BISYS Funds Services, 3435 Stelzer Road,
Columbus, Ohio 43219-3035.
