BAILARD, BIEHL & KAISER INTERNATIONAL FUND GROUP, INC.
Supplement dated October 17, 2000 to
Prospectus and Statement of Additional Information dated January 27, 2000
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION CONTAINED IN THE
PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION FOR THE BAILARD, BIEHL &
KAISER INTERNATIONAL BOND FUND (THE "BOND FUND") AND THE BAILARD, BIEHL & KAISER
EQUITY FUND (THE "EQUITY FUND," AND TOGETHER WITH THE BOND FUND, THE "FUNDS"):
On October 17, 2000, the Board of Directors of the Bailard, Biehl & Kaiser
International Fund Group, Inc. (the "Company") approved the following changes to
the Bond Fund and the Equity Fund subject to the approval of certain of the
changes by the stockholders of the Funds:
1. The Bond Fund's investment objective will change to seeking total
return, from income and long-term growth of capital, by investing
primarily in U.S. dollar-denominated debt securities, with a secondary
emphasis on non-U.S. dollar-denominated debt securities, of U.S. and
foreign issuers. The Bond Fund will invest up to 100% of its assets in
dollar-denominated securities and up to 50% of its assets in
non-dollar denominated securities.
2. The Bond Fund will be permitted to invest all of its assets in debt
securities of U.S. and foreign companies that are rated at least Baa3
or BBB-, and up to 20% of its assets in debt of lesser quality,
emerging market debt, preferred stock and convertible bonds. The Bond
Fund will also be permitted to invest in taxable municipal debt and
Rule 144A securities.
3. The Bond Fund will initially be measured against a 100%
currency-hedged benchmark.
4. The name of the Bond Fund will change to the "Bailard, Biehl & Kaiser
Bond Opportunity Fund."
5. The annual management fee paid by the Bond Fund will be reduced from
0.75% to 0.60% of average daily net assets.
6. Investors will be permitted, at the discretion of the Adviser, to
purchase shares of the Bond Fund in exchange for marketable debt
securities that are suitable for investment by the Bond Fund.
7. Fundamental Policy No. 6 will be amended to permit the Equity Fund to
lend its portfolio securities, subject to any restrictions imposed by
applicable law and the adoption of procedures by the Board of
Directors.
8. Fundamental Policy No. 9, which restricts both Funds from investing in
the securities of an issuer with less than three years of operating
history, and Fundamental Policy No. 13, which restricts both Funds
from investing in companies whose securities one or more officers or
directors of the Company have certain percentage interests, will be
eliminated.
The proposed changes will be considered at a meeting of the stockholders
scheduled for December 14, 2000. Stockholders will receive proxy materials in
advance of the meeting describing the proposed changes.
