<PAGE>
THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 12, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
CLASS A, B AND C SHARES OF:
MUNDER ACCELERATING GROWTH FUND, MUNDER BALANCED FUND,
MUNDER GROWTH & INCOME 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 FRAMLINGTON EMERGING
MARKETS FUND, MUNDER FRAMLINGTON HEALTHCARE FUND AND MUNDER
FRAMLINGTON INTERNATIONAL GROWTH FUND
REDUCTION OF MINIMUM REQUIRED INVESTMENT
The minimum initial investment for Class A, Class B and Class C Shares of a
Fund has been reduced to $250. Subsequent investments must be at least $50.
CHANGE IN METHOD OF PORTFOLIO MANAGEMENT FOR
MUNDER BALANCED FUND
The Balanced Fund is managed by a committee of professional portfolio
managers of the Advisor.
ADDITION OF CO-MANAGER FOR MUNDER SMALL-CAP VALUE FUND
AND MUNDER VALUE FUND
Brian Wall has been appointed co-manager of the Small-Cap Value and Value
Funds. Mr. Wall was formerly a primary analyst for the Funds. Prior to
joining the Advisor in 1995, he was a Senior Equity Analyst with Woodbridge
Capital Management, Inc. (1994-1995) and an Assistant Vice President in
Equity Research for Merrill Lynch, Pierce Fenner & Smith in New York
(1992-1994).
PORTFOLIO MANAGEMENT OF
MUNDER SMALL COMPANY GROWTH FUND
Carl Wilk and Michael P. Gura jointly manage the Fund. Mr. Wilk, a Senior
Portfolio Manager of the Advisor, has managed the Fund since October 1996 and
was the Fund's primary analyst (1995 to 1996). Prior to joining the Advisor
in 1995, Mr. Wilk was a Senior Equity Research Analyst for the Fund at
Woodbridge. Mr. Gura has managed the Fund since March 1997. Prior to joining
the Advisor in 1995, Mr. Gura was a Vice President, Senior Equity Analyst for
the Fund at Woodbridge (1994-1995) and an investment officer for Manufacturer
National Bank Trust Department (1989-1994).
<PAGE>
QUALIFIED EMPLOYER SPONSORED RETIREMENT PLANS
Effective January 1, 1998, the "PURCHASES AND EXCHANGES OF SHARES--What
Price Do I Pay for Shares?--Qualified Employer Sponsored Retirement Plans"
section in the Prospectus is hereby deleted in its entirety and supplemented
as follows:
QUALIFIED EMPLOYER SPONSORED RETIREMENT PLANS
We will waive the initial sales charge on purchases of Class A Shares by
employer sponsored retirement plans that are qualified under Section 401(a) or
Section 403(b) of the Code (each, a "Qualified Employee Benefit Plan") that (1)
invest $1,000,000 or more in Class A Shares of investment portfolios offered by
the Trust, the Company or Framlington or (2) have at least 75 eligible plan
participants. In addition, we will waive the CDSC of 1% charged on certain
redemptions within one year of purchase for Qualified Employee Benefit Plan
purchases that meet the above criteria. A 1% commission will be paid by the
Distributor to dealers and other entities (as permitted by applicable Federal
and state law) who initiate and are responsible for Qualified Employee Benefit
Plan purchases that meet the above criteria. For purposes of this sales charge
waiver, Simplified Employee Pension Plans ("SEPs"), Individual Retirement
Accounts ("IRAs") and UPI Plans are not considered to be Qualified Employee
Benefit Plans.
We also will waive (i) the initial sales charge on Class A Shares on
purchases by UPI Plans or employees participating in an employer-sponsored or
administered retirement program operating under Section 408A of the Code and
(ii) the CDSC of 1% imposed on certain redemptions within one year of purchase
for these accounts. The Distributor will pay a 1% commission to dealers and
others (as permitted by applicable Federal and state law) who initiate and are
responsible for UPI Plan purchases.
We will waive the initial sales charge for all the investments by
Merrill Lynch Plans if (i) the Plan is recordkept on a daily valuation basis
by Merrill Lynch Group Employee Services ("Merrill Lynch") and, on the date
the plan sponsor ("the Plan Sponsor") signs the Merrill Lynch Recordkeeping
Service Agreement, the Plan has $3 million or more in assets invested in
broker/dealer funds not advised or managed by Merrill Lynch Asset Management,
L.P. ("MLAM") that are made available pursuant to a Services Agreement
between Merrill Lynch and the Funds' principal underwriter or distributor and
in funds advised or managed by MLAM (collectively, the "Applicable
Investments"); or (ii) the Plan is recordkept on a daily valuation basis by
an independent recordkeeper whose services are provided through a contract or
alliance arrangement with Merrill Lynch, and on the date the Plan Sponsor
signs the Merrill Lynch Recordkeeping Service Agreement, the Plan has $3
million or more in assets, excluding money market funds, invested in
Applicable Investments; or (iii) the Plan has 500 or more eligible employees,
as determined by the Merrill Lynch plan conversion manager, on the date the
Plan Sponsor signs the Merrill Lynch Recordkeeping Service Agreement.
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUNDS-- Who Manages
and Services the Funds?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
<PAGE>
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator")
is the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company, the
Trust and Framlington in all aspects of its administration and operations
including the maintenance of financial records and fund accounting. As
compensation for its services for the Company and the Trust, State Street is
entitled to receive fees, based on the aggregate daily net assets of the
Funds and certain other investment portfolios that are advised by the Advisor
for which it provides services, computed daily and payable monthly at the
annual rate of 0.113% on the first $2.8 billion of net assets, plus 0.103% on
the next $2.2 billion of net assets, plus 0.101% on the next $2.5 billion of
net assets, plus 0.095% on the next $2.5 billion of net assets, plus 0.080%
on the next $2.5 billion of net assets, plus 0.070% on all net assets in
excess of $12.5 billion (with a $75,000 minimum fee per annum in the
aggregate for all portfolios with respect to the Administrator). As
compensation for its services to Framlington, State Street is entitled to
receive fees, based on the aggregate daily net assets of the Framlington
Funds, computed daily and payable monthly at the annual rate of 0.051% on the
first $2.8 billion of net assets, plus 0.051% on the next $2.2 billion of net
assets, plus 0.051% on the next $2.5 billion of net assets, plus 0.045% on
the next $2.5 billion of net assets, plus 0.03% on the next $2.5 billion of
net assets, plus 0.02% on all net assets in excess of $12.5 billion (with a
$75,000 minimum fee per annum in the aggregate for all portfolios with
respect to the Administrator) until the aggregate assets of the Framlington
Funds are $120 million. When the aggregate assets of the Framlington Funds
exceed $120 million, State Street will be entitled to receive fees at the
same annual rates as those set forth above for the Company and the Trust.
<PAGE>
THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 12, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
CLASS K SHARES OF:
MUNDER ACCELERATING GROWTH FUND, MUNDER BALANCED 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 FRAMLINGTON EMERGING MARKETS FUND, MUNDER
FRAMLINGTON HEALTHCARE FUND, MUNDER FRAMLINGTON INTERNATIONAL GROWTH
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 SHORT TERM TREASURY FUND, MUNDER CASH INVESTMENT FUND,
MUNDER TAX-FREE MONEY MARKET FUND AND MUNDER U.S. TREASURY MONEY MARKET FUND
CHANGE IN METHOD OF PORTFOLIO MANAGEMENT FOR
MUNDER BALANCED FUND
The Balanced Fund is managed by a committee of professional portfolio managers
of the Advisor.
ADDITION OF CO-MANAGER FOR MUNDER SMALL-CAP VALUE FUND
AND MUNDER VALUE FUND
Brian Wall has been appointed co-manager of the Small-Cap Value and Value Funds.
Mr. Wall was formerly a primary analyst for the Funds. Prior to joining the
Advisor in 1995, he was a Senior Equity Analyst with Woodbridge Capital
Management, Inc. (1994-1995) and an Assistant Vice President in Equity Research
for Merrill Lynch, Pierce Fenner & Smith in New York (1992-1994).
PORTFOLIO MANAGEMENT OF
MUNDER SMALL COMPANY GROWTH FUND
Carl Wilk and Michael P. Gura jointly manage the Fund. Mr. Wilk, a Senior
Portfolio Manager of the Advisor, has managed the Fund since October 1996 and
was the Fund's primary analyst (1995 to 1996). Prior to joining the Advisor
in 1995, Mr. Wilk was a Senior Equity Research Analyst for the Fund at
Woodbridge. Mr. Gura has managed the Fund since March 1997. Prior to joining
the Advisor in 1995, Mr. Gura was a Vice President, Senior Equity Analyst for
the Fund at Woodbridge (1994-1995) and an investment officer for Manufacturer
National Bank Trust Department (1989-1994).
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUNDS-- Who Manages
and Services the Funds?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
<PAGE>
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator")
is the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company, the
Trust and Framlington in all aspects of its administration and operations
including the maintenance of financial records and fund accounting. As
compensation for its services for the Company and the Trust, State Street is
entitled to receive fees, based on the aggregate daily net assets of the
Funds and certain other investment portfolios that are advised by the Advisor
for which it provides services, computed daily and payable monthly at the
annual rate of 0.113% on the first $2.8 billion of net assets, plus 0.103% on
the next $2.2 billion of net assets, plus 0.101% on the next $2.5 billion of
net assets, plus 0.095% on the next $2.5 billion of net assets, plus 0.080%
on the next $2.5 billion of net assets, plus 0.070% on all net assets in
excess of $12.5 billion (with a $75,000 minimum fee per annum in the
aggregate for all portfolios with respect to the Administrator). As
compensation for its services to Framlington, State Street is entitled to
receive fees, based on the aggregate daily net assets of the Framlington
Funds, computed daily and payable monthly at the annual rate of 0.051% on the
first $2.8 billion of net assets, plus 0.051% on the next $2.2 billion of net
assets, plus 0.051% on the next $2.5 billion of net assets, plus 0.045% on
the next $2.5 billion of net assets, plus 0.03% on the next $2.5 billion of
net assets, plus 0.02% on all net assets in excess of $12.5 billion (with a
$75,000 minimum fee per annum in the aggregate for all portfolios with
respect to the Administrator) until the aggregate assets of the Framlington
Funds are $120 million. When the aggregate assets of the Framlington Funds
exceed $120 million, State Street will be entitled to receive fees at the
same annual rates as those set forth above for the Company and the Trust.
<PAGE>
THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 12, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
CLASS Y SHARES OF:
MUNDER ACCELERATING GROWTH FUND, MUNDER BALANCED FUND, MUNDER
GROWTH & INCOME 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 FRAMLINGTON
EMERGING MARKETS FUND, MUNDER FRAMLINGTON HEALTHCARE FUND, MUNDER
FRAMLINGTON INTERNATIONAL GROWTH 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 SHORT
TERM TREASURY FUND, MUNDER CASH INVESTMENT FUND, MUNDER MONEY MARKET
FUND, MUNDER TAX-FREE MONEY MARKET FUND AND
MUNDER U.S. TREASURY MONEY MARKET FUND
CHANGE IN METHOD OF PORTFOLIO MANAGEMENT FOR
MUNDER BALANCED FUND
The Balanced Fund is managed by a committee of professional portfolio managers
of the Advisor.
ADDITION OF CO-MANAGER FOR MUNDER SMALL-CAP VALUE FUND
AND MUNDER VALUE FUNDS
Brian Wall has been appointed co-manager of the Small-Cap Value and Value Funds.
Mr. Wall was formerly a primary analyst for the Funds. Prior to joining the
Advisor in 1995, he was a Senior Equity Analyst with Woodbridge Capital
Management, Inc. (1994-1995) and an Assistant Vice President in Equity Research
for Merrill Lynch, Pierce Fenner & Smith in New York (1992-1994).
PORTFOLIO MANAGEMENT OF
MUNDER SMALL COMPANY GROWTH FUND
Carl Wilk and Michael P. Gura jointly manage the Fund. Mr. Wilk, a Senior
Portfolio Manager of the Advisor, has managed the Fund since October 1996 and
was the Fund's primary analyst (1995 to 1996). Prior to joining the Advisor
in 1995, Mr. Wilk was a Senior Equity Research Analyst for the Fund at
Woodbridge. Mr. Gura has managed the Fund since March 1997. Prior to joining
the Advisor in 1995, Mr. Gura was a Vice President, Senior Equity Analyst for
the Fund at Woodbridge (1994-1995) and an investment officer for Manufacturer
National Bank Trust Department (1989-1994).
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUNDS-- Who Manages
and Services the Funds?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
<PAGE>
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator")
is the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company, the
Trust and Framlington in all aspects of its administration and operations
including the maintenance of financial records and fund accounting. As
compensation for its services for the Company and the Trust, State Street is
entitled to receive fees, based on the aggregate daily net assets of the
Funds and certain other investment portfolios that are advised by the Advisor
for which it provides services, computed daily and payable monthly at the
annual rate of 0.113% on the first $2.8 billion of net assets, plus 0.103% on
the next $2.2 billion of net assets, plus 0.101% on the next $2.5 billion of
net assets, plus 0.095% on the next $2.5 billion of net assets, plus 0.080%
on the next $2.5 billion of net assets, plus 0.070% on all net assets in
excess of $12.5 billion (with a $75,000 minimum fee per annum in the
aggregate for all portfolios with respect to the Administrator). As
compensation for its services to Framlington, State Street is entitled to
receive fees, based on the aggregate daily net assets of the Framlington
Funds, computed daily and payable monthly at the annual rate of 0.051% on the
first $2.8 billion of net assets, plus 0.051% on the next $2.2 billion of net
assets, plus 0.051% on the next $2.5 billion of net assets, plus 0.045% on
the next $2.5 billion of net assets, plus 0.03% on the next $2.5 billion of
net assets, plus 0.02% on all net assets in excess of $12.5 billion (with a
$75,000 minimum fee per annum in the aggregate for all portfolios with
respect to the Administrator) until the aggregate assets of the Framlington
Funds are $120 million. When the aggregate assets of the Framlington Funds
exceed $120 million, State Street will be entitled to receive fees at the
same annual rates as those set forth above for the Company and the Trust.
<PAGE>
THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 12, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
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, MUNDER TAX-FREE INTERMEDIATE
BOND FUND AND MUNDER SHORT TERM TREASURY FUND
REDUCTION OF MINIMUM REQUIRED INVESTMENT
The minimum initial investment for Class A, Class B and Class C Shares of a
Fund has been reduced to $250. Subsequent investments must be at least $50.
QUALIFIED EMPLOYER SPONSORED RETIREMENT PLANS
Effective January 1, 1998, the first two paragraphs under "PURCHASES AND
EXCHANGES OF SHARES--What Price Do I Pay For Shares?--Qualified Employer
Sponsored Retirement Plans" in section the Prospectus is hereby deleted in
its entirety and supplemented as follows:
QUALIFIED EMPLOYER SPONSORED RETIREMENT PLANS
We will waive the initial sales charge on purchases of Class A Shares by
employer sponsored retirement plans that are qualified under Section 401(a) or
Section 403(b) of the Code (each, a "Qualified Employee Benefit Plan") that (1)
invest $1,000,000 or more in Class A Shares of investment portfolios offered by
the Trust, the Company or Framlington or (2) have at least 75 eligible plan
participants. In addition, we will waive the CDSC of 1% charged on certain
redemptions within one year of purchase for Qualified Employee Benefit Plan
purchases that meet the above criteria. A 1% commission will be paid by the
Distributor to dealers and other entities (as permitted by applicable Federal
and state law) who initiate and are responsible for Qualified Employee Benefit
Plan purchases that meet the above criteria. For purposes of this sales charge
waiver, Simplified Employee Pension Plans ("SEPs"), Individual Retirement
Accounts ("IRAs"), UPI Plans and Merrill Lynch Plans are not considered to be
Qualified Employee Benefit Plans.
We also will waive (i) the initial sales charge on Class A Shares on
purchases by UPI Plans or employees participating in an employer-sponsored or
administered retirement program operating under Section 408A of the Code and
(ii) the CDSC of 1% imposed on certain redemptions within one year of purchase
for these accounts. The Distributor will pay a 1% commission to dealers and
others (as permitted by applicable Federal and state law) who initiate and are
responsible for UPI Plan purchases.
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUNDS-- Who Manages
and Services the Funds?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
<PAGE>
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator") is
the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company, the
Trust and Framlington in all aspects of its administration and operations
including the maintenance of financial records and fund accounting. As
compensation for its services, State Street is entitled to receive fees, based
on the aggregate daily net assets of the Funds and certain other investment
portfolios that are advised by the Advisor for which it provides services,
computed daily and payable monthly at the annual rate of 0.113% on the first
$2.8 billion of net assets, plus 0.103% on the next $2.2 billion of net assets,
plus 0.101% on the next $2.5 billion of net assets, plus 0.095% on the next $2.5
billion of net assets, plus 0.080% on the next $2.5 billion of net assets, plus
0.070% on all net assets in excess of $12.5 billion (with a $75,000 minimum fee
per annum in the aggregate for all portfolios with respect to the
Administrator).
<PAGE>
THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 12, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
CLASS A, B AND C SHARES OF:
MUNDER CASH INVESTMENT FUND, MUNDER MONEY MARKET FUND, MUNDER
TAX-FREE MONEY MARKET FUND AND MUNDER U.S. TREASURY MONEY MARKET FUND
REDUCTION OF MINIMUM REQUIRED INVESTMENT
The minimum initial investment for Class A Shares of a Trust Fund has been
reduced to $250. Subsequent investments must be at least $50.
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUNDS-- Who Manages
and Services the Funds?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator") is
the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company, the
Trust and Framlington in all aspects of its administration and operations
including the maintenance of financial records and fund accounting. As
compensation for its services, State Street is entitled to receive fees, based
on the aggregate daily net assets of the Funds and certain other investment
portfolios that are advised by the Advisor for which it provides services,
computed daily and payable monthly at the annual rate of 0.113% on the first
$2.8 billion of net assets, plus 0.103% on the next $2.2 billion of net assets,
plus 0.101% on the next $2.5 billion of net assets, plus 0.095% on the next $2.5
billion of net assets, plus 0.080% on the next $2.5 billion of net assets, plus
0.070% on all net assets in excess of $12.5 billion (with a $75,000 minimum fee
per annum in the aggregate for all portfolios with respect to the
Administrator).
<PAGE>
THE MUNDER FUNDS.
SUPPLEMENT DATED JANUARY 12, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
CLASS A AND B SHARES OF:
MUNDER ALL-SEASON CONSERVATIVE FUND, MUNDER ALL-SEASON MODERATE FUND AND
MUNDER ALL-SEASON AGGRESSIVE FUND
REDUCTION OF MINIMUM REQUIRED INVESTMENT
The minimum initial investment for Class A and Class B Shares of a Fund has
been reduced to $250. Subsequent investments must be at least $50.
ADDITION OF CO-MANAGER FOR MUNDER SMALL-CAP VALUE FUND
AND MUNDER VALUE FUND
Brian Wall has been appointed co-manager of the Small-Cap Value and Value
Funds. Mr. Wall was formerly a primary analyst for the Funds. Prior to
joining the Advisor in 1995, he was a Senior Equity Analyst with Woodbridge
Capital Management, Inc. (1994-1995) and an Assistant Vice President in
Equity Research for Merrill Lynch, Pierce Fenner & Smith in New York
(1992-1994).
PORTFOLIO MANAGEMENT OF
MUNDER SMALL COMPANY GROWTH FUND
Carl Wilk and Michael P. Gura jointly manage the Fund. Mr. Wilk, a Senior
Portfolio Manager of the Advisor, has managed the Fund since October 1996 and
was the Fund's primary analyst (1995 to 1996). Prior to joining the Advisor
in 1995, Mr. Wilk was a Senior Equity Research Analyst for the Fund at
Woodbridge. Mr. Gura has managed the Fund since March 1997. Prior to joining
the Advisor in 1995, Mr. Gura was a Vice President, Senior Equity Analyst for
the Fund at Woodbridge (1994-1995) and an investment officer for Manufacturer
National Bank Trust Department (1989-1994).
QUALIFIED EMPLOYER SPONSORED RETIREMENT PLANS
Effective January 1, 1998, "PURCHASES AND EXCHANGES OF SHARES--What Price Do
I Pay For Shares?--Qualified Employer Sponsored Retirement Plans" section in
the Prospectus is hereby deleted in its entirety and supplemented as follows:
QUALIFIED EMPLOYER SPONSORED RETIREMENT PLANS
We will waive the initial sales charge on purchases of Class A Shares by
employer sponsored retirement plans that are qualified under Section 401(a) or
Section 403(b) of the Code (each, a "Qualified Employee Benefit Plan") that (1)
invest $1,000,000 or more in Class A Shares or (2) have at least 75 eligible
plan participants. In addition, we will waive the CDSC of 1% charged on certain
redemptions of Class A Shares within one year of purchase for Qualified Employee
Benefit Plan purchases that meet the above criteria. A 1% commission will be
paid by the Distributor to dealers and other entities (as permitted by
applicable Federal and state law) who initiate and are responsible for Qualified
Employee Benefit Plan purchases that meet the above criteria. For purposes of
this sales charge waiver, Simplified Employee Pension Plans ("SEPs"), Individual
Retirement Accounts ("IRAs") and UPI Plans are not considered to be Qualified
Employee Benefit Plans.
We also will waive (i) the initial sales charge on Class A Shares on
purchases by UPI Plans or employees participating in an employer-sponsored or
administered retirement program operating under Section 408A of the Code and
(ii) the CDSC of 1% imposed on certain redemptions within one year of purchase
for these accounts. The Distributor will pay a 1% commission to dealers and
others (as permitted by applicable Federal and state law) who initiate and are
responsible for UPI Plan purchases.
We will waive the initial sales charge for all the investments by
Merrill Lynch Plans if (i) the Plan is recordkept on a daily valuation basis
by Merrill Lynch Group Employee Services ("Merrill Lynch") and, on the date
the plan sponsor ("the Plan Sponsor") signs the Merrill Lynch Recordkeeping
Service Agreement, the Plan has $3 million or more in assets invested in
broker/dealer funds not advised or managed by Merrill Lynch Asset Management,
L.P. ("MLAM") that are made available pursuant to a Services Agreement
between Merrill Lynch and the Funds' principal underwriter or distributor and
in funds advised or managed by MLAM (collectively, the "Applicable
Investments"); or (ii) the Plan is recordkept on a daily valuation basis by
an independent recordkeeper whose services are provided through a contract or
alliance arrangement with Merrill Lynch, and on the date the Plan Sponsor
signs the Merrill Lynch Recordkeeping Service Agreement, the Plan has $3
million or more in assets, excluding money market funds, invested in
Applicable Investments; or (iii) the Plan has 500 or more eligible employees,
as determined by the Merrill Lynch plan conversion manager, on the date the
Plan Sponsor signs the Merrill Lynch Recordkeeping Service Agreement.
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUNDS-- Who Manages
and Services the Funds?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
<PAGE>
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator")
is the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company, the
Trust and Framlington in all aspects of its administration and operations
including the maintenance of financial records and fund accounting. As
compensation for its services, State Street is entitled to receive a fee of
$27,000 for each Fund plus fees based on the aggregate daily net assets of
the Funds and certain other investment portfolios that are advised by the
Advisor for which it provides services, computed daily and payable monthly at
the annual rate of 0.062% on the first $2.8 billion of net assets, plus
0.052% on the next $2.2 billion of net assets, plus 0.050% on all net assets
in excess of $5 billion.
<PAGE>
THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 12, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
CLASS Y SHARES OF:
MUNDER ALL-SEASON CONSERVATIVE FUND, MUNDER ALL-SEASON MODERATE
FUND AND MUNDER ALL-SEASON AGGRESSIVE FUND
ADDITION OF CO-MANAGER FOR MUNDER SMALL-CAP VALUE FUND
AND MUNDER VALUE FUND
Brian Wall has been appointed co-manager of the Small-Cap Value and Value
Funds. Mr. Wall was formerly a primary analyst for the Funds. Prior to
joining the Advisor in 1995, he was a Senior Equity Analyst with Woodbridge
Capital Management, Inc. (1994-1995) and an Assistant Vice President in
Equity Research for Merrill Lynch, Pierce Fenner & Smith in New York
(1992-1994).
PORTFOLIO MANAGEMENT OF
MUNDER SMALL COMPANY GROWTH FUND
Carl Wilk and Michael P. Gura jointly manage the Fund. Mr. Wilk, a Senior
Portfolio Manager of the Advisor, has managed the Fund since October 1996 and
was the Fund's primary analyst (1995 to 1996). Prior to joining the Advisor
in 1995, Mr. Wilk was a Senior Equity Research Analyst for the Fund at
Woodbridge. Mr. Gura has managed the Fund since March 1997. Prior to joining
the Advisor in 1995, Mr. Gura was a Vice President, Senior Equity Analyst for
the Fund at Woodbridge (1994-1995) and an investment officer for Manufacturer
National Bank Trust Department (1989-1994).
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUNDS-- Who Manages
and Services the Funds?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator")
is the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company, the
Trust and Framlington in all aspects of its administration and operations
including the maintenance of financial records and fund accounting. As
compensation for its services, State Street is entitled to receive a fee of
$27,000 for each Fund plus fees based on the aggregate daily net assets of
the Funds and certain other investment portfolios that are advised by the
Advisor for which it provides services, computed daily and payable monthly at
the annual rate of 0.062% on the first $2.8 billion of net assets, plus
0.052% on the next $2.2 billion of net assets, plus 0.050% on all net assets
in excess of $5 billion.
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THE MUNDER FUNDS
SUPPLEMENT DATED JANUARY 12, 1998
TO PROSPECTUS DATED OCTOBER 29, 1997
THE NETNET FUND
ADMINISTRATION FEE
The first paragraph under "STRUCTURE AND MANAGEMENT OF THE FUND-- Who Manages
and Services the Fund?--Administrator" in the Prospectus is hereby deleted in
its entirety and supplemented as follows:
ADMINISTRATOR
State Street Bank and Trust Company ("State Street" or "Administrator") is
the Funds' administrator. State Street is located at 225 Franklin Street,
Boston, Massachusetts 02110. State Street generally assists the Company in all
aspects of its administration and operations including the maintenance of
financial records and fund accounting. As compensation for its services, State
Street is entitled to receive fees, based on the aggregate daily net assets of
the Fund and certain other investment portfolios that are advised by the Advisor
for which it provides services, computed daily and payable monthly at the annual
rate of 0.113% on the first $2.8 billion of net assets, plus 0.103% on the next
$2.2 billion of net assets, plus 0.101% on the next $2.5 billion of net assets,
plus 0.095% on the next $2.5 billion of net assets, plus 0.080% on the next $2.5
billion of net assets, plus 0.070% on all net assets in excess of $12.5 billion
(with a $75,000 minimum fee per annum in the aggregate for all portfolios with
respect to the Administrator).
