Rule 497(e)
File Nos. 33-34841 and 811-6011
THE MONTGOMERY FUNDS
Supplement dated March 30, 2000 to the
Prospectus dated October 31, 1999
For Shareholders of Montgomery International Growth Fund and Montgomery
International Small Cap Fund only:
Effective April 15, 2000, the Manager will institute a redemption fee of 2% on
any shares of the International Growth Fund redeemed within three months after
purchase. Shares of the International Growth Fund purchased on or before April
15, 2000 (including those investments in the International Small Cap Fund made
before the merger with the International Growth Fund) will not be subject to
this redemption fee. However, subsequent investments made after April 15, 2000
will be covered by this new redemption fee. Please be assured that this addition
of a redemption fee in no way increases or otherwise changes the operating costs
or expenses to shareholders. Shown below is the revised fee and expense table
for the International Growth Fund (found on page 13 of the prospectus).
The Manager believes that this action is necessary to prevent excessive flows of
cash into or out of the International Growth Fund, which can harm the Fund's
performance when unanticipated. In addition, because transaction costs in some
of the international markets in which the Fund invests can be relatively high,
increased turnover from significant cash flows increases the Fund's total
expenses.
Investors should retain this supplement with the prospectus for future
reference.
If we can provide any more information, please call our shareholder service
representatives at (800) 572-FUND [3863] or visit our award-winning Web site at
www.montgomeryfunds.com. We look forward to continuing to meet your investment
needs.
Sincerely,
THE MONTGOMERY FUNDS
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Fees & Expenses
<TABLE>
The following table shows the fees and expenses you may pay if you buy and hold
shares of the Fund. Montgomery does not impose any front-end or deferred sales
loads on this Fund.
<S> <C>
Shareholder Fees (fees paid directly from your investment)
Redemption Fee ** 2.00%
Annual Fund Operating Expenses (expenses that are deducted from Fund assets)++
Management Fee 1.10%
Distribution/Service (12b-1) Fee 0.00%
Other Expenses 0.64%
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Total Annual Fund Operating Expenses 1.74%
Fee Reduction and/or Expense Reimbursement 0.08%
Net Expenses 1.66%
<FN>
** Deducted from net proceeds of shares redeemed (or exchanged) within three
months after purchase, except for certain fee-based programs, and for
shares purchased on or before April 15, 2000. This fee is retained by the
Fund. $10 will be deducted from redemption proceeds sent by wire or
overnight courier.
++ Montgomery Asset Management has contractually agreed to reduce its fees
and/or absorb expenses to limit the Fund's total annual operating expenses
(excluding interest and tax expenses) to 1.65%. This contract has a rolling
10-year term.
</FN>
</TABLE>