File Nos. 33-29678
and 811-4391
Rule 497(e) under
the Securities Act
of 1933
THE FONTAINE TRUST
SUPPLEMENT DATED MAY 14, 1996
TO THE PROSPECTUS DATED MAY 1, 1996
This supplement updates certain information contained in the above-
dated Prospectus of The Fontaine Trust. You should retain both the
Supplement and Prospectus for future reference. You may obtain an additional
copy of the Prospectus, free of charge, by calling 1-800-247-1550.
The following information is inserted on page 20 of the Prospectus
before "Organization of the Trust":
Telephone Transactions
Broker-dealers or other financial institutions, on behalf of their customers,
may purchase, redeem or exchange shares of the Funds by calling 1-800-247-
1550 between 9:00 a.m. and 4:00 p.m. Eastern Time, Monday through Friday,
except on days when the NYSE is closed. During times of drastic or unusual
market volatility, it may be difficult to exercise the telephone transaction
privileges. The Transfer Agent reserves the right to refuse any telephone
transaction when, in its sole discretion, it is unable to confirm to its own
satisfaction that a caller is the proper representative of the broker-dealer
or financial institution placing the order.
Neither the Funds nor the Transfer Agent will be liable for the authenticity
of instructions received by telephone that a Fund or the Transfer Agent
believes to be delivered by a proper representative of the broker-dealer or
financial institution, provided that the Funds or Transfer Agent follows
reasonable procedures to identify the caller. The broker-dealer or financial
institution shall bear the risk of any resulting loss. The Funds and the
Transfer Agent will follow certain procedures designed to make sure that
telephone instructions are genuine. Such procedures may include requiring
the broker-dealer or financial institution to select the telephone privileges
in writing prior to first use and to designate in writing the person or
persons authorized to provide telephone instructions on their behalf. The
Transfer Agent may tape-record telephone transactions and may request certain
identifying information from the caller.
The telephone transaction privileges may be suspended, limited, modified or
terminated at any time without prior notice by the Funds or the Transfer
Agent.
