December 7, 1998
Re: Bailard, Biehl & Kaiser International Equity Fund
Bailard, Biehl & Kaiser International Bond Fund
Dear Stockholder:
On January 1, 1999, eleven major European countries participating in the
European Economic and Monetary Union ("EMU") will adopt a single currency, the
Euro, overseen by the European Central Bank. Beginning on the first business day
of 1999, most securities denominated in the currencies of participating
countries will be redenominated in Euros.
While Bailard, Biehl & Kaiser ("BB&K") expects this to be a positive event for
European markets in the long run, as would be expected with any undertaking of
this magnitude, there are areas of uncertainty involving the actual conversion
and the market's reaction to the conversion. These areas may include, but are
not limited to, the ability of financial institutions to prepare their operating
systems and the creation of suitable clearing and payment systems for the new
currency. These and other factors, including political and economic risk, could
cause market disruptions before or after the introduction of the Euro. While
there can be no assurance that the Bailard, Biehl & Kaiser Funds will not be
adversely affected, BB&K is taking steps to effect the Funds' transition to the
Euro as smoothly as possible.
Your continued support of the Bailard, Biehl & Kaiser Funds is appreciated. If
you have any questions regarding this matter or your account in general, please
feel free to contact your investment counselor or our client service department
at 800-882-8383.
Sincerely,
Burnice E. Sparks, Jr.
President
THIS CONSTITUTES A SUPPLEMENT TO THE PROSPECTUSES OF THE BAILARD,
BIEHL & KAISER INTERNATIONAL EQUITY FUND, AND THE BAILARD, BIEHL &
KAISER INTERNATIONAL BOND FUND, DATED JANUARY 27, 1998.
