RULE 497(e)
33-34841
811-6100
THE MONTGOMERY FUNDS
Additional Supplement dated December 1, 1996 to
Prospectus dated November 12, 1996
Montgomery Growth Fund, Montgomery Small Cap Opportunities Fund,
Montgomery Micro Cap Fund and Montgomery Asset Allocation Fund
Kathryn Peters has been added as a portfolio manager on the Manager's Growth
Equity Team which includes Roger W. Honour and Andrew Pratt. Ms. Peters joined
the Manager in January, 1995. From 1993 to 1995 she was an Associate in the
investment banking division of Donaldson, Lufkin & Jenrette in New York. At
Donaldson, Lufkin & Jenrette, Ms. Peters evaluated prospective equity
investments for the merchant banking fund and processed investment banking
transactions, including equity and high yield offerings. Prior to that, she
analyzed mezzanine investments for Barclays de Zoete Wedd in New York. From 1988
to 1990, Ms. Peters worked in the leveraged buy-out group of Marine Midland
Bank.
Michael Carmen no longer serves as a portfolio manager for these Funds.
Montgomery Short Government Bond Fund, Montgomery Government Reserve Fund,
Montgomery Federal Tax-Free Money Fund, Montgomery California Tax-Free Money
Fund, Montgomery California Tax-Free Intermediate Bond Fund and Montgomery Asset
Allocation Fund.
Peter D. Wilson has been added as a portfolio manager for these Funds. Mr.
Wilson joined the Manager's fixed income team in April, 1994. From 1992 to 1994
he was an Associate in the Fixed Income Client Services Department of BARRA in
Berkeley, California. At BARRA, Mr. Wilson directed research and development
teams on mortgage, CMO and other fixed income projects. Prior to that, he was an
Associate in the structured finance department at Security Pacific Merchant Bank
as well as on the mortgage trading desk at Chemical Bank.
Montgomery Emerging Asia Fund
Montgomery Emerging Markets Fund
Thomas R. Haslett no longer serves as a portfolio manager for these Funds.
Josephine S. Jimenez, CFA, Bryan L. Sudweeks, Ph.D., CFA, Frank Chiang and
Angeline Ee, will continue to have primary responsibility for managing these
Funds. See "Management of the Fund" in the Prospectus.
