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G02038-02 (6/97)
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The Virtus Funds
The U.S. Government Securities Fund
The Style Manager: Large Cap Fund
The Style Manager Fund
The Virginia Municipal Bond Fund
The Maryland Municipal Bond Fund
The Treasury Money Market Fund
The Money Market Fund
The Tax-Free Money Market Fund
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Supplement to the Combined Prospectuses dated January 31, 1997
Please be advised that effective immediately, Holly S. Thompson no longer serves
as portfolio manager for The Maryland Municipal Bond Fund, The Virginia
Municipal Bond Fund and The Tax-Free Money Market Fund. John S. Hall will serve
as the portfolio manager for The Maryland Municipal Bond Fund, The Virginia
Municipal Bond Fund and The Tax-Free Money Market Fund and continue to serve as
portfolio manager for The U.S. Government Securities Fund.
Therefore, please delete Holly S. Thompson's biographical information from the
sub-section entitled "Adviser's Background." In addition, please delete the
first sentence of the biographical information of John S. Hall in the
sub-section entitled "Adviser's Background" and replace it with the following:
"John S. Hall has managed The U.S. Government Securities Fund since
December 1996. Mr. Hall served in a supervisory capacity for The
Maryland Municipal Bond Fund, The Virginia Municipal Bond Fund and The
Tax-Free Money Market Fund since December 1996 and has managed those Funds
since June 1997."
In addition, Garry M. Allen no longer serves as portfolio manager for The Style
Manager: Large Cap Fund and The Style Manager Fund. Effective immediately, Tanya
Orr Bird will serve as portfolio manager for The Style Manager: Large Cap Fund
and The Style Manager Fund.
Therefore, please delete Garry M. Allen's biographical information and insert
the following biographical information for Tanya Orr Bird as the last paragraph
of the sub-section entitled "Adviser's Background":
"Tanya Orr Bird has managed The Style Manager: Large Cap Fund and The Style
Manager Fund since July 1997, having previously assisted with those
duties. Ms. Bird is a Chartered Financial Analyst and is currently
Vice President and Managing Director for Virtus Capital Management,
Inc. Prior to joining Virtus Capital Management, Inc., Ms. Bird had been
in Institutional Marketing for Signet Trust Company (October 1994 -
December 1994). Previously, Ms. Bird was a Consultant for William M.
Mercer Asset Planning, Inc. (June 1989 - October 1994)."
July 7, 1997
THE VIRTUS FUNDS
Federated Investors
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
(412) 288-1900
July 7, 1997
Edgar Operations Branch
Securities and Exchange Commission
Division of Investment Management
450 Fifth Street, Northwest
Washington, DC 20549
RE: THE VIRTUS FUNDS (the "Trust")
1933 Act File No. 33-36451
1940 Act File No. 811-6158
Dear Sir or Madam:
Pursuant to Rule 497(e) of the Securities Act of 1933, the Supplement
to the Prospectuses dated January 31, 1997, as amended on July 7, 1997 is hereby
electronically transmitted.
Very truly yours,
/s/Mary Jean Milberger
Mary Jean Milberger
Compliance Analyst
Enclosures
