November 18, 1996
THE INFINITY MUTUAL FUNDS, INC.
VALUESTAR FUNDS
PRIME MONEY MARKET PORTFOLIO
U.S. TREASURY MONEY MARKET PORTFOLIO
INVESTOR SHARES
SUPPLEMENT TO PROSPECTUS
DATED MAY 1, 1996
THE FOLLOWING SUPPLEMENTS AND SUPERSEDES ANY CONTRARY INFORMATION CONTAINED IN
THE PORTFOLIOS' PROSPECTUS.
As of July 1, 1996, the Portfolios commenced offering Trust Shares
pursuant to a separate prospectus. Investors eligible to purchase Trust Shares
should contact the Adviser.
* * *
The Adviser has engaged Barnett Capital Advisors, Inc. (the
"Sub-Adviser"), a newly-formed, wholly-owned subsidiary of Barnett Banks Trust
Company, N.A., to provide the day-to day management of the Prime Portfolio's
investments.
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November 18, 1996
THE INFINITY MUTUAL FUNDS, INC.
VALUESTAR FUNDS
PRIME MONEY MARKET PORTFOLIO
TRUST SHARES
SUPPLEMENT TO PROSPECTUS
DATED JULY 1, 1996
THE FOLLOWING SUPPLEMENTS AND SUPERSEDES ANY CONTRARY INFORMATION CONTAINED IN
THE PORTFOLIO'S PROSPECTUS.
The Adviser has engaged Barnett Capital Advisors, Inc. (the
"Sub-Adviser"), a newly-formed, wholly-owned subsidiary of Barnett Banks Trust
Company, N.A., to provide the day-to day management of the Prime Portfolio's
investments.
<PAGE>
November 18, 1996
THE INFINITY MUTUAL FUNDS, INC.
VALUESTAR FUNDS
SUPPLEMENT TO PROSPECTUS
DATED MAY 1, 1996
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY
INFORMATION CONTAINED IN THE PROSPECTUS.
FINANCIAL HIGHLIGHTS
Contained below for each Portfolio is per share operating performance
data for an Investor Share of common stock outstanding, total investment return,
ratios to average net assets and other supplemental data for the period
indicated (unaudited). Further financial data and related notes accompany the
Statement of Additional Information, available upon request.
<TABLE>
<CAPTION>
ValueStar ValueStar ValueStar Short
ValueStar Capital Investment Grade Tennessee Tax Intermediate
Growth Portfolio Bond Portfolio Exempt Bond Duration Bond
Portfolio Portfolio
----------- ------------ ---------- ---------
For the Period For the Period Six Months Ended Six Months Ended
from April 1, from April 1, June 30, 1996 June 30, 1996
1996 to June 30, 1996(a) June 30, 1996(a)
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net Asset Vaule, Beginning Of Period $ 10.00 $ 10.00 $ 10.19 $ 10.13
------- ------- ------- -------
Income from investment
operations:
Net investment income (loss) (0.01) 0.14 0.21 0.29
Net realized and
unrealized gains (losses) on
securities transactions 0.45 (0.12) (0.42) (0.20)
----- -------- ------ ------
Net income (loss) from investment
operations 0.44 0.02 (0.21) 0.09
---- ---- ------ ----
Less dividends and distributions:
Dividends from net investment income - (0.14) (0.21) (0.29)
----- ------- ----- ------
Net change in net asset value 0.44 (0.12) (0.42) (0.20)
---- ----- ------ ------
NET ASSET VALUE, END OF PERIOD $ 10.44 $ 9.88 $ 9.77 $ 9.93
======= ====== ====== ======
Total Return (excluding sales charge) 12.76%(b) (2.07%)(b) (2.05)%(b) 0.87%(b)
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000's) $42,319 $35,567 $91,138 $104,593
Ratio of expenses to average net assets 1.30%(c) 1.21%(c) 0.85% (c) 0.85%(c)
Ratio of net investment income (loss)
to average net assets (0.22%)(c) 5.57%(c) 4.31%(c) 5.76%(c)
Ratio of expenses to average net assets* 1.55%(c) 1.46%(c) 1.10%(c) 1.10%(c)
Ratio of net investment income (loss) to
average net assets* (0.47%)(c) 5.32%(c) 4.06%(c) 5.51%(c)
Portfolio Turnover 29.68% 28.44% 86.83% 22.99%
Average commission rate paid (d) $0.0820 -- -- --
-------------
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(a) Period from commencement of operations.
(b) Not annualized.
(c) Annualized.
(d) Represents the total dollar amount of commissions paid on portfolio
transactions divided by total number of shares purchased and sold for which
commissions were charged.
</TABLE>
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PERFORMANCE INFORMATION
HISTORICAL PERFORMANCE INFORMATION--(Capital Growth Portfolio and
Investment Grade Bond Portfolio only) The Capital Growth Portfolio
and Investment Grade Bond Portfolio commenced operations on April 1,
1996 through a transfer of assets from common trust funds managed by
the Adviser, using substantially the same investment objective,
policies, restrictions and methodologies as the corresponding
Portfolio. Set forth below is historical performance information for
each of the Capital Growth Portfolio and Investment Grade Bond
Portfolio which includes performance of the Portfolio's predecessor
common trust fund for various periods ended June 30, 1996, as
adjusted to reflect the estimated maximum operating expenses that may
be charged the Investor Class of the respective Portfolio. This
performance is not necessarily indicative of the future performance
of either Portfolio.
Since
1 YEAR 5 YEARS 10 YEARS 12/31/80
------ ------- -------- --------
CAPITAL GROWTH PORTFOLIO
Maximum Offering Price.. 24.58% 12.55% 10.01% 10.83%
Net Asset Value......... 28.44% 13.22% 10.36% 11.03%
INVESTMENT GRADE BOND
PORTFOLIO
Maximum Offering Price.. 0.08% 6.68% 6.43% 9.59%
Net Asset Value......... 3.22% 7.33% 6.76% 9.80%
