The Munder Funds
Supplement Dated March 1, 1997
to Prospectus Dated October 28, 1996
Class A, B and C Shares of:
Munder Bond Fund, Munder Intermediate Bond Fund, Munder
International Bond Fund, Munder U.S. Government Income Fund,
Munder Michigan Triple Tax-Free Bond Fund, Munder Tax-Free Bond
Fund and Munder Tax-Free Intermediate Bond Fund.
FINANCIAL HIGHLIGHTS
The following table of "Financial Highlights" relating to
Class A Shares of the Munder International Bond Fund (the "Fund")
supplements information contained in the Prospectus dated October
28, 1996 and is derived from the Fund's unaudited Financial
Statements dated December 31, 1996. For the period shown, Class
B and Class C Shares had not commenced operations.
Munder International Bond Fund
Class A Shares
Period
Ended
12/31/96(a,d)
(Unaudited)
Net asset value, beginning of period $ 9.98
Income from investment operations:
Net investment income 0.08
Net realized and unrealized gain on investments 0.18
Total from investment operations 0.26
Less distributions:
Dividends from net investment income (0.08)
Total distributions (0.08)
Net asset value, end of period $ 10.16
Total return(b) 2.59%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $
15
Ratio of operating expenses to average net assets
1.10% (c)
Ratio of net investment income to average net assets
3.68% (c)
Portfolio turnover rate 31%
Ratio of operating expenses to average net assets without waivers
1.10% (c)
Net investment income per share without waivers $ 0.08
- ---------------------------------
(a) The Munder International Bond Fund Class A Shares commenced
operations on October 17, 1996. The Fund is authorized to issue
Class B Shares and Class C Shares. As of December 31, 1996, the
Fund had not commenced selling Class B and Class C Shares.
(b) Total return represents aggregate total return for the
period indicated and does not reflect any applicable sales
charges.
(c) Annualized.
(d) Per share numbers have been calculated using the average
shares method, which more appropriately presents the per share
data for the period since the use of the undistributed net
investment income method did not accord with the results of
operations.
PORTFOLIO INSTRUMENTS AND PRACTICES AND ASSOCIATED RISK
FACTORS
The Munder Bond Fund, Munder International Bond
Fund, Munder U.S. Government Income Fund, Munder Michigan
Triple Tax-Free Bond Fund, Munder Tax-Free Bond Fund, and
Munder Tax-Free Intermediate Bond Fund (each a "Fund") may
invest in preferred stock. Preferred stock ranks senior
to common stock in the capital structure of an issuer and
in the payment of dividends. Consequently, preferred
stock may entail less risk than common stock. Some
preferred stock in which the Funds invest is convertible
into common stock. Convertible preferred stock may be
converted either at a stated price or rate within a
specified period of time into a specified number of shares
of common stock. By investing in convertible preferred
stock, a Fund seeks the opportunity, through the
conversion feature, to participate in the capital
appreciation of the common stock into which the securities
are convertible, while earning higher current income than
is available from the common stock. Convertible preferred
stocks entitle the holder to receive the dividend paid on
preferred stock until the convertible preferred stocks
mature or are redeemed, converted or exchanged. Prior to
conversion, convertible preferred stocks have
characteristics similar to ordinary debt securities in
that they normally provide a stable stream of income with
generally higher yields than those of common stock of the
same or similar issuers. In evaluating a convertible
preferred stock, to the extent consistent with a Fund's
investment objective, the Advisor places emphasis on the
attractiveness of the underlying common stock and the
potential for capital appreciation through conversion.
The Munder Funds
Supplement Dated March 1, 1997
to Prospectus Dated October 28, 1996
Class A, B & C Shares of:
Munder Accelerating Growth Fund, Munder Balanced Fund,
Munder Equity Selection Fund, Munder Growth & Income
Fund, Munder Index 500 Fund, Munder International
Equity Fund, Munder Micro-Cap Equity Fund, Munder Mid-
Cap Growth Fund, Munder Multi-Season Growth Fund,
Munder Real Estate Equity Investment Fund, Munder
Small-Cap Value Fund, Munder Small Company Growth Fund
and Munder Value Fund
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER SMALL-CAP
VALUE FUND AND MUNDER SMALL COMPANY GROWTH FUND
Edward Eberle, Value Portfolio Manager of the
Advisor, has been co-manager of the Value Fund since
October, 1996. Mr. Eberle has been appointed co-
manager of the Small-Cap Value Fund. Prior to being
appointed co-manager, Mr. Eberle acted as the primary
analyst for the Funds, assisting the manager with
portfolio decisions. He is also a member of the
Advisor's asset allocation team. Prior to joining the
Advisor in 1995, Mr. Eberle served as Executive Vice
President and Portfolio Manager for Westpointe
Financial Corporation and as a member of the Board of
Directors for Westpointe Capital Management and Dart
Investors Bermuda Limited. Mr. Eberle received a B.A.
in Finance from Michigan State University.
Michael P. Gura, CFA, Senior Portfolio Manager of
the Advisor, has been appointed co-manager of the
Small Company Growth Fund. Prior to joining the
Advisor in 1995, Mr. Gura was a Vice President, Senior
Equity Analyst for Woodbridge Capital Management, Inc.
From 1989-1994, Mr. Gura was an investment officer at
Manufacturers National Bank Trust Investment
Department where he was responsible for equity
research covering the retailing, apparel, specialty
chemical and environmental industries. Form 1986-
1989, Mr. Gura served as a Financial/Tax Planning
analyst for Manufacturers National Bank. Mr. Gura
received an M.S. in Finance with Distinction and a
B.B.A. from Walsh College, is a member of the
Financial Analyst Society of Detroit and a Certified
Financial Planner.
The Munder Funds
Supplement Dated March 1, 1997
to Prospectus Dated October 28, 1996
Class K Shares of:
Munder Accelerating Growth Fund, Munder Balanced Fund, Munder
Equity Selection Fund, Munder Growth & Income Fund, Munder Index
500 Fund, Munder International Equity Fund, Munder Micro-Cap
Equity Fund, Munder Mid-Cap Growth Fund, Munder Multi-Season
Growth Fund, Munder Real Estate Equity Investment Fund, Munder
Small-Cap Value Fund, Munder Small Company Growth Fund, Munder
Value Fund, Munder Bond Fund, Munder Intermediate Bond Fund,
Munder International Bond Fund, Munder U.S. Government Income
Fund, Munder Michigan Triple Tax-Free Bond Fund, Munder Tax-Free
Bond Fund, Munder Tax-Free Intermediate Bond Fund, Munder Cash
Investment Fund, Munder Tax-Free Money Market Fund and Munder U.S.
Treasury Money Market Fund.
MANAGEMENT
Performance Information
Set forth below is certain performance information
regarding the Munder Accelerating Growth Fund, Munder
Small Company Growth Fund, Munder International Equity
Fund, Munder Index 500 Fund, Munder Bond Fund, Munder U.S.
Government Income Fund, Munder Intermediate Bond Fund and
Munder Tax-Free Bond Fund (the "Funds") provided by Munder
Capital Management (the "Advisor") or Comerica Bank
("Comerica") each of which was created through the
conversion of a predecessor common or collective trust
fund managed by the Advisor or Comerica and which had
investment objectives and policies similar to those of the
corresponding Funds. See in the prospectus "Investment
Objectives and Polices" and "Portfolio Instruments and
Practices and Associated Risk Factors". Immediately prior
to and following the conversion, the same individual at
the Advisor or Comerica managed a Fund as both a common or
collective trust fund and as a mutual fund.
The table for each Fund includes the rates of average
annual total return achieved on the Fund's assets when
managed as a mutual fund and the rates of average annual
return achieved on its assets when managed as a common or
collective trust fund prior to the conversion of that
common or collective fund into the current mutual fund.
The performance information assumes the reinvestment of
net income and capital gain distributions. The common or
collective fund returns are calculated by assuming that
the same fees and expenses currently applicable to a Fund
had also applied to the corresponding common or collective
trust fund prior to its conversion to a mutual fund.
Past performance of the Funds is not an indication of
future results. The quoted performance data below
includes the performance of each respective common or
collective trust fund for periods before the corresponding
mutual fund's registration statement became effective.
The common and collective trust funds were not registered
under the Investment Company Act of 1940 (the "1940 Act")
and therefore were not subject to certain investment
restrictions that are imposed by the 1940 Act. If the
common and collective trust funds had been registered
under the 1940 Act, the common and collective trust funds'
performance may have been adversely affected.
Munder Accelerating
Period Ended Growth Fund S&P 500
December 31, 1996 (Class K)* Index**
1 Year 12.85% 22.96%
3 Years 9.14% 19.67%
5 Years 10.85% 15.22%
Inception on January 1, 1990 12.10% 14.40%
* Converted from collective trust fund to mutual fund on
November 23, 1992
** Standard & Poor's 500 Composite Stock Price Index ("S&P 500
Index") performance shows total return in U.S. dollars but does
not reflect the deduction of fees, expenses and taxes. Source:
Lipper Analytical Services, Inc.
Munder Small Company
Period Ended Growth Fund Russell 2000
December 31, 1996 (Class K)* Index**
1 Year 36.89% 16.49%
3 Years 19.96% 13.68%
5 Years 18.07% 15.64%
10 Years 16.70% 12.41%
Inception on December 31, 1982 15.03% 12.71%
* Converted from collective trust fund to mutual fund on
November 23, 1992
** Russell 2000 Index performance shows total return in U.S.
dollars but does not reflect the deduction of fees, expenses and
taxes. Source: Lipper Analytical Services, Inc.
Munder International
Period Ended Equity Fund FT/S&P Actuaries
December 31, 1996 (Class K)* World Index ex U.S.**
1 Year 10.03% 6.48%
3 Years 4.60% 8.42%
5 Years 8.91% 7.93%
Inception on September 30, 1990 10.14% 10.31%
* Converted from collective trust fund to mutual fund on
November 23, 1992
** FT/S&P Actuaries World Index ex. U.S. performance shows
total return in U.S. dollars but does not reflect the deduction of
fees, expenses and taxes. Source: Ibbotson Associates, Inc.
Munder Index
Period Ended 500 Fund S&P 500
December 31, 1996 (Class K)* Index**
1 Year 22.15% 22.96%
3 Years 19.04% 19.67%
5 Years 14.64% 15.22%
Inception on January 27, 1988 15.26% 16.08%
* Converted from collective trust fund to mutual fund on
December 7, 1992
** S&P 500 Index performance shows total return in U.S.
dollars but does not reflect the deduction of fees, expenses and
taxes. Source: Lipper Analytical Services, Inc.
Munder Lehman Brothers
Period Ended Bond Fund Gov't/Corp. Bond
December 31, 1996 (Class K)* Index**
1 Year 2.47% 2.90%
3 Years 4.85% 5.79%
5 Years 5.28% 7.18%
10 Years 7.05% 8.38%
* Converted from collective trust fund to mutual fund on
November 23, 1992
** Lehman Brothers Government/Corporate Bond Index performance
shows total return in U.S. dollars but does not reflect the
deduction of fees, expenses and taxes. Source: Lipper Analytical
Services, Inc.
Munder U.S. Lehman Brothers
Period Ended Government Income Fund Gov't/Corp. Bond
December 31, 1996 (Class K)* Index**
1 Year 2.88% 2.90%
3 Years 4.18% 5.79%
5 Years 6.06% 7.18%
10 Years 7.22% 8.38%
* Converted from common trust fund to mutual fund on July 5,
1994
** Lehman Brothers Government/Corporate Bond Index performance
shows total return in U.S. dollars but does not reflect the
deduction of fees, expenses and taxes. Source: Lipper Analytical
Services, Inc.
Munder Intermediate Lehman Brothers
Period Ended Bond Fund Intermediate Gov't/Corp.
December 31, 1996 (Class K)* Bond Index**
1 Year 2.88% 4.05%
3 Years 4.24% 5.58%
5 Years 5.46% 6.53%
10 Years 6.80% 7.91%
Inception on March 31, 1982 8.97% 10.47%
* Converted from collective trust fund to mutual fund on
November 20, 1992
** Lehman Brothers Intermediate Government/Corporate Bond Index
performance shows total return in U.S. dollars but does not
reflect the deduction of fees, expenses and taxes. Source: Lipper
Analytical Services, Inc.
Munder Tax-Free
Period Ended Bond Fund Lehman 15-Year
December 31, 1996 (Class K)* Muni Bond Index**
1 Year 2.13% 4.65%
3 Years 4.01% 5.44%
5 Years 6.42% 8.05%
10 Years 6.31% N/A
* Converted from common trust fund to mutual fund on July 5,
1994
** Lehman 15-Year Municipal Bond Index performance shows total
return in U.S. dollars but does not reflect the deduction of fees,
expenses and taxes. Source: Lipper Analytical Services, Inc.
Indices
The S&P 500 Index is an unmanaged index of common
stock prices, including reinvestment of dividends.
The Russell 2000 Index is a capitalization weighted
total return index which is comprised of 2,000 of the
smallest capitalized U.S. domiciled companies whose stock
is traded in the United States on the New York Stock
Exchange, American Stock Exchange and the NASDAQ.
The FT/S&P Actuaries World Index ex U.S. is an
unmanaged index used to portray global equity markets
excluding the U.S. The Index is weighted based on the
market capitalization of those stocks selected to
represent each country and includes gross reinvestment of
dividends.
The Lehman Brothers Government/Corporate Bond Index
is a weighted composite of (i) Lehman Brothers Government
Bond Index, which is comprised of all publicly issued,
non-convertible debt of the U.S. Government or any agency
thereof, quasi-federal corporations, and corporate debt
guaranteed by the U.S. Government and (ii) Lehman Brothers
Corporate Bond Index, which is comprised of all public
fixed-rate, non-convertible investment-grade domestic
corporate debt, excluding collateralized mortgage
obligations.
The Lehman Brothers Intermediate Government/Corporate
Bond Index is a weighted composite of (i) Lehman Brothers
Intermediate Government Bond Index, which is comprised of
all publicly issued, non-convertible debt of the U.S.
Government or any agency thereof, quasi-Federal
corporations and corporate debt guaranteed by the U.S.
Government with a maturity of between one and ten years
and (ii) Lehman Brothers Corporate Bond Index.
The Lehman 15-Year Municipal Bond Index is a
performance benchmark for the long-term investment-grade
tax-exempt bond market.
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER SMALL-CAP VALUE
FUND AND MUNDER SMALL COMPANY GROWTH FUND
Edward Eberle, Value Portfolio Manager of the
Advisor, has been co-manager of the Value Fund since
October, 1996. Mr. Eberle has been appointed co-manager
of the Small-Cap Value Fund. Prior to being appointed co-
manager, Mr. Eberle acted as the primary analyst for the
Funds, assisting the manger with portfolio decisions. He
is also a member of the Advisor's asset allocation team.
Prior to joining the Advisor in 1995, Mr. Eberle served as
Executive Vice President and Portfolio Manager for
Westpointe Financial Corporation and as a member of the
Board of Directors for Westpointe Capital Management and
Dart Investors Bermuda Limited. Mr. Eberle received a
B.A. in Finance from Michigan State University.
Michael P. Gura, CFA, Senior Portfolio Manager of the
Advisor, has been appointed co-manager of the Small
Company Growth Fund. Prior to joining the Advisor in
1995, Mr. Gura was a Vice President, Senior Equity Analyst
for Woodbridge Capital Management, Inc. From 1989-1994,
Mr. Gura was an investment officer at Manufacturers
National Bank Trust Investment Department where he was
responsible for equity research covering the retailing,
apparel, specialty chemical and environmental industries.
Form 1986-1989, Mr. Gura served as a Financial/Tax
Planning analyst for Manufacturers National Bank. Mr.
Gura received an M.S. in Finance with Distinction and a
B.B.A. from Walsh College, is a member of the Financial
Analyst Society of Detroit and a Certified Financial
Planner.
PORTFOLIO INSTRUMENTS AND PRACTICES AND ASSOCIATED RISK
FACTORS
The Munder Bond Fund, Munder International Bond Fund,
Munder U.S. Government Income Fund, Munder Michigan Triple
Tax-Free Bond Fund, Munder Tax-Free Bond Fund, and Munder
Tax-Free Intermediate Bond Fund (each a "Fund") may invest
in preferred stock. Preferred stock ranks senior to
common stock in the capital structure of an issuer and in
the payment of dividends. Consequently, preferred stock
may entail less risk than common stock. Some preferred
stock in which the Funds invest is convertible into common
stock. Convertible preferred stock may be converted
either at a stated price or rate within a specified period
of time into a specified number of shares of common stock.
By investing in convertible preferred stock, a Fund seeks
the opportunity, through the conversion feature, to
participate in the capital appreciation of the common
stock into which the securities are convertible, while
earning higher current income than is available from the
common stock. Convertible preferred stocks entitle the
holder to receive the dividend paid on preferred stock
until the convertible preferred stocks mature or are
redeemed, converted or exchanged. Prior to conversion,
convertible preferred stocks have characteristics similar
to ordinary debt securities in that they normally provide
a stable stream of income with generally higher yields
than those of common stock of the same or similar issuers.
In evaluating a convertible preferred stock, to the extent
consistent with a Fund's investment objective, the Advisor
places emphasis on the attractiveness of the underlying
common stock and the potential for capital appreciation
through conversion.
The Munder Funds
Supplement Dated March 1, 1997
to Prospectus Dated October 28, 1996
Class Y Shares of:
Munder Accelerating Growth Fund, Munder Balanced Fund, Munder
Equity Selection Fund, Munder Growth & Income Fund, Munder Index
500 Fund, Munder International Equity Fund, Munder Micro-Cap
Equity Fund, Munder Mid-Cap Growth Fund, Munder Multi-Season
Growth Fund, Munder Real Estate Equity Investment Fund, Munder
Small-Cap Value Fund, Munder Small Company Growth Fund, Munder
Value Fund, Munder Bond Fund, Munder Intermediate Bond Fund,
Munder International Bond Fund, Munder U.S. Government Income
Fund, Munder Michigan Triple Tax-Free Bond Fund, Munder Tax-Free
Bond Fund, Munder Tax-Free Intermediate Bond Fund, Munder Cash
Investment Fund, Munder Money Market Fund, Munder Tax-Free Money
Market Fund and Munder U.S. Treasury Money Market Fund.
FINANCIAL HIGHLIGHTS
The following table of "Financial Highlights" relating to
Class Y Shares of the Munder International Bond Fund (the "Fund")
supplements information contained in the Prospectus dated October
28, 1996 and is derived from the Fund's unaudited Financial
Statements dated December 31, 1996.
Munder International Bond Fund
Period
Ended
12/31/96(a,d)
(Unaudited)
Net asset value, beginning of period $ 10.00
Income from investment operations:
Net investment income 0.10
Net realized and unrealized gain on investments 0.14
Total from investment operations 0.24
Less distributions:
Dividends from net investment income (0.08)
Total distributions (0.08)
Net asset value, end of period $ 10.16
Total return(b) 2.43%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $29,820
Ratio of operating expenses to average net assets
0.85% (c)
Ratio of net investment income to average net assets
3.93% (c)
Portfolio turnover rate 31%
Ratio of operating expenses to average net assets without waivers
0.85% (c)
Net investment income per share without waivers $ 0.10
- ---------------------------------
(a) The Munder International Bond Fund Class Y Shares commenced
operations on October 2, 1996.
(b) Total return represents aggregate total return for the
period indicated and does not reflect any applicable sales
charges.
(c) Annualized.
(d) Per share numbers have been calculated using the average
shares method, which more appropriately presents the per share
data for the period since the use of the undistributed net
investment income method did not accord with the results of
operations.
MANAGEMENT
Performance Information
Set forth below is certain performance information
regarding the Munder Accelerating Growth Fund, Munder
Small Company Growth Fund, Munder International Equity
Fund, Munder Index 500 Fund, Munder Bond Fund, Munder U.S.
Government Income Fund, Munder Intermediate Bond Fund and
Munder Tax-Free Bond Fund (the "Funds") provided by Munder
Capital Management (the "Advisor") or Comerica Bank
("Comerica") each of which was created through the
conversion of a predecessor common or collective trust
fund managed by the Advisor or Comerica and which had
investment objectives and policies similar to those of the
corresponding Funds. See in the prospectus "Investment
Objectives and Polices" and "Portfolio Instruments and
Practices and Associated Risk Factors". Immediately prior
to and following the conversion, the same individual at
the Advisor or Comerica managed a Fund as both a common or
collective trust fund and as a mutual fund.
The table for each Fund includes the rates of average
annual total return achieved on the Fund's assets when
managed as a mutual fund and the rates of average annual
return achieved on its assets when managed as a common or
collective trust fund prior to the conversion of that
common or collective fund into the current mutual fund.
The performance information assumes the reinvestment of
net income and capital gain distributions. The common or
collective fund returns are calculated by assuming that
the same fees and expenses currently applicable to a Fund
had also applied to the corresponding common or collective
trust fund prior to its conversion to a mutual fund.
Past performance of the Funds is not an indication of
future results. The quoted performance data below
includes the performance of each respective common or
collective trust fund for periods before the corresponding
mutual fund's registration statement became effective.
The common and collective trust funds were not registered
under the Investment Company Act of 1940 (the "1940 Act")
and therefore were not subject to certain investment
restrictions that are imposed by the 1940 Act. If the
common and collective trust funds had been registered
under the 1940 Act, the common and collective trust funds'
performance may have been adversely affected.
Munder Accelerating
Period Ended Growth Fund S&P 500
December 31, 1996 (Class Y)* Index**
1 Year 13.07% 22.96%
3 Years 9.40% 19.67%
5 Years 11.06% 15.22%
Inception on January 1, 1990 12.34% 14.40%
* Converted from collective trust fund to mutual fund on
December 1, 1991
** Standard & Poor's 500 Composite Stock Price Index ("S&P 500
Index") performance shows total return in U.S. dollars but does
not reflect the deduction of fees, expenses and taxes. Source:
Lipper Analytical Services, Inc.
Munder Small Company
Period Ended Growth Fund Russell 2000
December 31, 1996 (Class Y)* Index**
1 Year 37.17% 16.49%
3 Years 20.24% 13.68%
5 Years 18.30% 15.64%
10 Years 16.95% 12.41%
Inception on December 31, 1982 15.29%
12.71%
* Converted from collective trust fund to mutual fund on
December 1, 1991
** Russell 2000 Index performance shows total return in U.S.
dollars but does not reflect the deduction of fees, expenses and
taxes. Source: Lipper Analytical Services, Inc.
Munder International
Period Ended Equity Fund FT/S&P Actuaries
December 31, 1996 (Class Y)* World Index ex. U.S.**
1 Year 10.41% 6.48%
3 Years 4.89% 8.42%
5 Years 9.14% 7.93%
Inception on September 30, 1990 10.37% 10.31%
* Converted from collective trust fund to mutual fund on
December 1, 1991
** FT/S&P Actuaries World Index ex. U.S. performance shows
total return in U.S. dollars but does not reflect the deduction of
fees, expenses and taxes. Source: Ibbotson Associates, Inc.
Munder Index
Period Ended 500 Fund S&P 500
December 31, 1996 (Class Y)* Index**
1 Year 22.47% 22.96%
3 Years 19.34% 19.67%
5 Years 14.87% 15.22%
Inception on January 27, 1988 15.51% 16.08%
* Converted from collective trust fund to mutual fund on
December 1, 1991
** S&P 500 Index performance shows total return in U.S. dollars
but does not reflect the deduction of fees, expenses and taxes.
Source: Lipper Analytical Services, Inc.
Munder Lehman Brothers
Period Ended Bond Fund Gov't/Corp. Bond
December 31, 1996 (Class Y)* Index**
1 Year 2.72% 2.90%
3 Years 5.10% 5.79%
5 Years 5.48% 7.18%
10 Years 7.28% 8.38%
* Converted from collective trust fund to mutual fund on
December 1, 1991
** Lehman Brothers Government/Corporate Bond Index performance
shows total return in U.S. dollars but does not reflect the
deduction of fees, expenses and taxes. Source: Lipper Analytical
Services, Inc.
Munder U.S. Lehman Brothers
Period Ended Government Income Fund Gov't/Corp. Bond
December 31, 1996 (Class Y)* Index**
1 Year 3.13% 2.90%
3 Years 4.43% 5.79%
5 Years 6.32% 7.18%
10 Years 7.48% 7.76%
* Converted from common trust fund to mutual fund on July 5,
1994
** Lehman Brothers Government/Corporate Bond Index performance
shows total return in U.S. dollars but does not reflect the
deduction of fees, expenses and taxes. Source: Lipper Analytical
Services, Inc.
Munder Intermediate Lehman Brothers.
Period Ended Bond Fund Intermediate Gov't/Corp.
December 31, 1996 (Class Y)* Bond Index**
1 Year 3.13% 4.05%
3 Years 4.49% 5.58%
5 Years 5.65% 6.53%
10 Years 7.04% 7.91%
Inception on March 31, 1982 9.22% 10.47%
* Converted from collective trust fund to mutual fund on
December 1, 1991
** Lehman Brothers Intermediate Government/Corporate Bond Index
performance shows total return in U.S. dollars but does not
reflect the deduction of fees, expenses and taxes. Source: Lipper
Analytical Services, Inc.
Munder Tax-Free
Period Ended Bond Fund Lehman 15-Year
December 31, 1996 (Class Y)* Muni Bond Index**
1 Year 2.38% 4.65%
3 Years 4.24% 5.44%
5 Years 6.67% 8.05%
10 Years 6.57% N/A
* Converted from common trust fund to mutual fund on July 21,
1994
** Lehman 15-Year Municipal Bond Index performance shows total
return in U.S. dollars but does not reflect the deduction of fees,
expenses and taxes. Source: Lipper Analytical Services, Inc.
Indices
The S&P 500 Index is an unmanaged index of common
stock prices, including reinvestment of dividends.
The Russell 2000 Index is a capitalization weighted
total return index which is comprised of 2,000 of the
smallest capitalized U.S. domiciled companies whose stock
is traded in the United States on the New York Stock
Exchange, American Stock Exchange and the NASDAQ.
The FT/S&P Actuaries World Index ex U.S. is an
unmanaged index used to portray global equity markets
excluding the U.S. The Index is weighted based on the
market capitalization of those stocks selected to
represent each country and includes gross reinvestment of
dividends.
The Lehman Brothers Government/Corporate Bond Index
is a weighted composite of (i) Lehman Brothers Government
Bond Index, which is comprised of all publicly issued,
non-convertible debt of the U.S. Government or any agency
thereof, quasi-federal corporations, and corporate debt
guaranteed by the U.S. Government and (ii) Lehman Brothers
Corporate Bond Index, which is comprised of all public
fixed-rate, non-convertible investment-grade domestic
corporate debt, excluding collateralized mortgage
obligations.
The Lehman Brothers Intermediate Government/Corporate
Bond Index is a weighted composite of (i) Lehman Brothers
Intermediate Government Bond Index, which is comprised of
all publicly issued, non-convertible debt of the U.S.
Government or any agency thereof, quasi-Federal
corporations and corporate debt guaranteed by the U.S.
Government with a maturity of between one and ten years
and (ii) Lehman Brothers Corporate Bond Index.
The Lehman 15-Year Municipal Bond Index is a
performance benchmark for the long-term investment-grade
tax-exempt bond market.
CHANGE IN PORTFOLIO MANAGER FOR THE MUNDER SMALL-CAP VALUE
FUND AND MUNDER SMALL COMPANY GROWTH FUND
Edward Eberle, Value Portfolio Manager of the
Advisor, has been co-manager of the Value Fund since
October, 1996. Mr. Eberle has been appointed co-manager
of the Small-Cap Value Fund. Prior to being appointed co-
manager, Mr. Eberle acted as the primary analyst for the
Funds, assisting the manger with portfolio decisions. He
is also a member of the Advisor's asset allocation team.
Prior to joining the Advisor in 1995, Mr. Eberle served as
Executive Vice President and Portfolio Manager for
Westpointe Financial Corporation and as a member of the
Board of Directors for Westpointe Capital Management and
Dart Investors Bermuda Limited. Mr. Eberle received a
B.A. in Finance from Michigan State University.
Michael P. Gura, CFA, Senior Portfolio Manager of the
Advisor, has been appointed co-manager of the Small
Company Growth Fund. Prior to joining the Advisor in
1995, Mr. Gura was a Vice President, Senior Equity Analyst
for Woodbridge Capital Management, Inc. From 1989-1994,
Mr. Gura was an investment officer at Manufacturers
National Bank Trust Investment Department where he was
responsible for equity research covering the retailing,
apparel, specialty chemical and environmental industries.
Form 1986-1989, Mr. Gura served as a Financial/Tax
Planning analyst for Manufacturers National Bank. Mr.
Gura received an M.S. in Finance with Distinction and a
B.B.A. from Walsh College, is a member of the Financial
Analyst Society of Detroit and a Certified Financial
Planner.
PORTFOLIO INSTRUMENTS AND PRACTICES AND ASSOCIATED RISK
FACTORS
The Munder Bond Fund, Munder Intermediate Bond Fund,
Munder International Bond Fund, Munder U.S. Government
Income Fund, Munder Michigan Triple Tax-Free Bond Fund,
Munder Tax-Free Bond Fund and Munder Tax-Free Intermediate
Bond Fund (each a "Fund") may invest in preferred stock.
Preferred stock ranks senior to common stock in the
capital structure of an issuer and in the payment of
dividends. Consequently, preferred stock may entail less
risk than common stock. Some preferred stock in which the
Funds invest is convertible into common stock.
Convertible preferred stock may be converted either at a
stated price or rate within a specified period of time
into a specified number of shares of common stock. By
investing in convertible preferred stock, a Fund seeks the
opportunity, through the conversion feature, to
participate in the capital appreciation of the common
stock into which the securities are convertible, while
earning higher current income than is available from the
common stock. Convertible preferred stocks entitle the
holder to receive the dividend paid on preferred stock
until the convertible preferred stocks mature or are
redeemed, converted or exchanged. Prior to conversion,
convertible preferred stocks have characteristics similar
to ordinary debt securities in that they normally provide
a stable stream of income with generally higher yields
than those of common stock of the same or similar issuers.
In evaluating a convertible preferred stock, to the extent
consistent with a Fund's investment objective, the Advisor
places emphasis on the attractiveness of the underlying
common stock and the potential for capital appreciation
through conversion.
