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NORTH AMERICAN FUNDS
Supplement to Prospectus
Dated December 31, 1996
On October 1, 1997, CypressTree Investments, Inc. ("CypressTree") completed
the purchase of that portion of the business of NASL Financial Services, Inc.
relating to acting as investment adviser and distributor of North American Funds
(the "Fund"). Accordingly, effective October 1, 1997, CypressTree's investment
advisory subsidiary, CypressTree Asset Management Corporation, Inc., is the
investment adviser for the Fund, and CypressTree's broker-dealer subsidiary,
CypressTree Funds Distributors, Inc., is the distributor for the Fund, in each
case succeeding NASL Financial Services, Inc. CypressTree and its affiliates,
based in Boston, Massachusetts, were formed in 1996 to acquire, advise and
distribute mutual funds through broker-dealers, banks and other intermediaries.
CypressTree is a subsidiary of Cypress Holding Company, Inc., which is
controlled by its management and by Berkshire Partners IV, L.P. References in
the Prospectus to the "Adviser" and the "Distributor" should be deemed to be
references to CypressTree Asset Management Corporation, Inc. and CypressTree
Funds Distributors, Inc., respectively. The investment objectives and policies
of each Portfolio of the Fund, the subadvisers to each Portfolio of the Fund,
and the rates of advisory and subadvisory fees and the expense limits for each
Portfolio are unchanged. The Fund's address, as set forth on the cover page of
the Prospectus, is changed to 286 Congress Street, Boston, Massachusetts 02210.
The Fund's telephone number, and the address to which new account applications,
additional investment, redemption requests, shareholder inquiries, etc. should
be sent, are as set forth in the Prospectus.
Class B shares of each Portfolio of the Fund (except Class B shares of the
Money Market Fund) purchased on or after October 1, 1997 will convert
automatically to Class A shares of the same Portfolio eight years after
purchase, rather than six years after purchase as described in the Prospectus.
Thus, such shares will be subject to 1.00% annual service and distribution fees
for eight years after purchase. Class B shares purchased prior to October 1,
1997 will still convert automatically to Class A shares of the same Portfolio
six years after purchase, as described in the Prospectus . The characteristics
of Class B shares are otherwise as described in the Prospectus under "Multiple
Pricing System." Accordingly, in the tables contained in the "Example" section
on pages 5-7 of the Prospectus, the amounts in the "10 Years" column for Class B
shares are restated as follows:
PORTFOLIO 10 YEARS
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GLOBAL EQUITY (FORMERLY, "GLOBAL GROWTH")
Class B shares $257*
Class B no redemption $257*
INTERNATIONAL GROWTH AND INCOME
Class B shares $257*
Class B no redemption $257*
GROWTH AND INCOME
Class B shares $251*
Class B no redemption $251*
EQUITY-INCOME (FORMERLY, "VALUE EQUITY"
AND PREVIOUSLY "GROWTH")
Class B shares $251*
Class B no redemption $251*
The Date of this Supplement is October 1, 1997.
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BALANCED (FORMERLY, "ASSET ALLOCATION")
Class B shares $251*
Class B no redemption $251*
STRATEGIC INCOME
Class B shares $232*
Class B no redemption $232*
INVESTMENT QUALITY BOND
Class B shares $205*
Class B no redemption $205*
NATIONAL MUNICIPAL BOND
Class B shares $193*
Class B no redemption $193*
U.S. GOVERNMENT SECURITIES
Class B shares $205*
Class B no redemption $205*
* Reflects the conversion to Class A shares eight years after purchase;
therefore, years 9 and 10 reflect Class A expenses.
The International Small Cap, Growth Equity and Balanced Funds each 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, as described in the Prospectus. This policy is amended
to reflect that preferred stocks are not subject to this 5% limitation.
The Date of this Supplement is October 1, 1997.
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