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THE RIVERFRONT FUNDS, INC.
THE RIVERFRONT U.S. GOVERNMENT SECURITIES
MONEY MARKET FUND
THE RIVERFRONT U.S. GOVERNMENT INCOME FUND
THE RIVERFRONT INCOME EQUITY FUND
THE RIVERFRONT OHIO TAX-FREE BOND FUND
THE RIVERFRONT STOCK APPRECIATION FUND
Supplement Dated December 2, 1996, to
Prospectus Dated April 30, 1996
Capitalized terms used in this Supplement have the meaning assigned to
them in the Prospectus.
The following paragraph is added as the second paragraph under the
heading "THE RIVERFRONT STOCK APPRECIATION FUND -- OTHER ELIGIBLE INVESTMENTS"
on page 28 of the Prospectus:
The Stock Appreciation Fund may also invest in securities of
equity real estate investment trusts ("REITs"). REITs pool investors'
funds for investment primarily in commercial real estate properties.
Investment in REITs may subject the Stock Appreciation Fund to certain
risks. REITs may be affected by changes in the value of the underlying
property owned by the trusts. REITs are dependent upon specialized
management skill, may not be diversified and are subject to the risks
of financing projects. REITs are also subject to heavy cash flow
dependency, defaults by borrowers, self liquidation and the possibility
of failing to qualify for the beneficial tax treatment available to
REITs under the Internal Revenue Code and to maintain its exemption
from the 1940 Act. As a shareholder in a REIT, the Stock Appreciation
Fund would bear, along with other shareholders, its pro rata portion of
the REIT's operating expenses. These expenses would be in addition to
the advisory and other expenses that Stock Appreciation Fund bears
directly in connection with its own operations.
The third and forth paragraphs under the heading "COMPANY MANAGEMENT
AND EXPENSES -- INVESTMENT ADVISER" on page 53 of the Prospectus are deleted in
their entirety and replaced with the following:
Provident uses a team approach and disciplined investment
strategy in providing investment advisory services to all its accounts,
including the Funds. As of November 15, 1996, Provident decided to
adopt a team approach with respect to each of the Funds in order to
take advantage of the experience of its entire portfolio management
team. Provident's investment staff consists of seven individuals. All
Funds are reviewed on a regular basis by Provident's Investment Policy
Committee to ensure they are invested in accordance with the Funds' and
Provident's investment policies.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE
