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M.S.D. & T. FUNDS, INC.
INSTITUTIONAL SHARES
OF THE
VALUE EQUITY FUND
INTERNATIONAL EQUITY FUND
INTERMEDIATE FIXED INCOME FUND
MARYLAND TAX-EXEMPT BOND FUND
SUPPLEMENT DATED JANUARY 1, 1997
TO PROSPECTUS DATED SEPTEMBER 30, 1996
The following replaces the second and third sentences of the fourth
paragraph under the heading "MANAGEMENT OF THE COMPANY--Investment Adviser and
Sub-Adviser" on page 25 of the Prospectus:
The Value Equity Fund is managed by Manind V. Govil, CFA, with the guidance
of Brian B. Topping. Mr. Topping, Vice Chairman of Mercantile, has
participated in the management of the Fund since December, 1995 and has
managed endowment, employee benefit and foundation portfolios at Mercantile
since 1976. Mr. Govil, Assistant Vice President of Mercantile, assisted in the
management of the Fund since 1994, and has managed endowment, employee benefit
and foundation portfolios at Mercantile since 1994. Following the completion
of his MBA from the University of Cincinnati in 1992, he was an analyst with
Complete Business Solutions, Inc., a computer consulting firm, before joining
Mercantile in 1993.
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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 January 1, 1997
to Prospectus dated September 30, 1996
The following replaces the fourth paragraph under the heading "FUND
MANAGEMENT -- Investment Adviser" on page 23 of the Prospectus:
The Value Equity Fund is managed by Manind V. Govil, CFA, with the
guidance of Brian B. Topping. Mr. Topping, Vice Chairman of Mercantile, has
participated in the management of the Fund since December, 1995 and has managed
endowment, employee benefit and foundation portfolios at Mercantile since 1976.
Mr. Govil, Assistant Vice President of Mercantile, assisted in the management of
the Fund since 1994, and has managed endowment, employee benefit and foundation
portfolios at Mercantile since 1994. Following the completion of his MBA from
the University of Cincinnati in 1992, he was an analyst with Complete Business
Solutions, Inc., a computer consulting firm, before joining Mercantile in 1993.
