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NORTH AMERICAN FUNDS
SUPPLEMENT TO PROSPECTUS
DATED DECEMBER 31, 1996
The International Small Cap, Growth Equity and Balanced Funds each
currently have a policy that at no time will the portfolio have more than 5% of
its total assets invested in any fixed-income securities which are unrated or
are rated below investment grade either at the time of purchase or as a result
of a reduction in rating after purchase. This policy is amended to reflect that
preferred stocks are not subject to this 5% limitation.
THE DATE OF THIS SUPPLEMENT IS MAY 1, 1997.
