<PAGE>
Filed Pursuant to Rule 497(e)
File Nos. 811-6229; 33-37783
- --------------------------------------------------------------------------------
THE GOVETT FUNDS, INC.
Supplement dated December 29, 1995
to the Prospectus dated May 1, 1995,
As supplemented October 26, 1995 and December 21, 1995
- --------------------------------------------------------------------------------
On December 7, 1995, an agreement was signed to sell John Govett & Co.
Limited ("John Govett"), the investment manager of The Govett Funds, Inc. (the
"Funds"), to John Govett Holdings Limited, a newly formed, majority-owned
subsidiary of the AIB Group of Companies of Dublin, Ireland ("AIB"), in a stock
sale that closed on December 29, 1995.
In connection with the sale, the Directors of The Govett Funds have
approved (i) a new investment management agreement with John Govett, under its
new ownership, for all of the Funds, and (ii) a new subadvisory agreement
between John Govett and Govett Asset Management Company ("GAMCO"), subadvisor to
the Smaller Companies Fund. GAMCO is not being purchased by AIB and will change
its name to Berkeley Capital Management. No change in the portfolio management
of any Govett Fund or in the advisory fees paid by the Funds is expected to
occur as a result of the Sale.
The shareholders of The Govett Funds will also be asked to approve the new
management and subadvisory agreements. A proxy statement describing these
matters in greater detail is expected to be sent to Govett Fund shareholders
shortly in preparation for a special shareholders' meeting scheduled for early
1996.
* * * * * * * * * *
Effective December 30, 1995, Jeffrey Bernstein will take over
responsibility as portfolio manager of the Smaller Companies Fund. Mr.
Bernstein joined GAMCO at the end of November, 1995. Prior to that time he
was a vice president at Bankers Trust where he was assistant portfolio
manager of the bank's small and mid-cap collective funds, under the Global
Investment Management Division, and of the BT Investment Small Cap Fund, an
open-end mutual fund. He came to Bankers Trust from Cowen Asset Management,
where he was a vice president specalizing in analysis of the technology
sector. He graduated from Union College in 1988.
* * * * * * * * * *
Effective January 2, 1996, the offices of The Govett Funds, Inc. will
relocate to:
250 Montgomery Street, 12th Floor
San Francisco, CA 94104
Telephone: 415/263-1865
FAX: 415 263-1880
Please note that there is no change in the address of any service provider
to the Funds or to any other address shown in the Funds' current prospectus. In
addition, all shareholder service and new account inquiries should continue to
be addressed as directed in the prospectus.
<PAGE>
Filed Pursuant to Rule 497(e)
File Nos. 811-6229; 33-37783
- --------------------------------------------------------------------------------
THE GOVETT FUNDS, INC.
Supplement dated December 29,1995 to the
Statement of Additional Information to the
Prospectus dated May 1, 1995,
As supplemented October 26, 1995 and December 21,1995
- --------------------------------------------------------------------------------
On December 7, 1995, an agreement was signed to sell John Govett & Co.
Limited ("John Govett"), the investment manager of The Govett Funds, Inc. (the
"Funds"), to John Govett Holdings Limited, a newly-formed, majority-owned
subsidiary of the AIB Group of Companies of Dublin, Ireland ("AIB"), in a stock
sale that closed on December 29, 1995.
In connection with sale, the Directors of The Govett Funds have approved
(i) a new investment management agreement with John Govett, under its new
ownership, for all of the Funds, and (ii) a new subadvisory agreement between
John Govett and Govett Asset Management Company ("GAMCO"), subadvisor to the
Smaller Companies Fund. GAMCO is not being purchased by AIB and will change its
name to Berkeley Capital Management. No change in the portfolio management of
any Govett Fund or in the advisory fees paid by the Funds is expected to occur
as a result of the Sale.
The shareholders of The Govett Funds will also be asked to approve the new
management and subadvisory agreements. A proxy statement describing these
matters in greater detail is expected to be sent to Govett Fund shareholders
shortly in preparation for a special shareholders' meeting scheduled for early
1996.
* * * * * * * * * *
THE FOLLOWING INFORMATION SUPPPLEMENTS THE INFORMATION PROVIDED ON PAGES 20
AND 21 OF THE STATEMENT OF ADDITIONAL INFORMATION, REGARDING THE DIRECTORS AND
OFFICERS ON THE GOVETT FUNDS, INC.:
Effective November 17, 1995, Ronald W. Green resigned as Director, Chairman
of the Board and President, and Cindee Beechwood resigned as Treasurer, of the
Funds.
On the same date, the Board of Directors elected Kevin J.T. Pakenham as
Director and Chairman of the Board to succeed Mr. Green, Brian Lee to succeed
Mr. Green as President, and Colin Kreidewolf to succeed Ms. Beechwood as
Treasurer.
Mr. Pakenham graduated from Oxford University with an MA and MPhil in
Economics. After working at Rothschild Intercontinental Bank, in 1975 he was
appointed Chief Economist at American Express Bank and, two years later, was
respopnsible for setting up their international asset management business. In
1983, he joined Foreign & Colonial Management as Managing Director. He joined
John Govett as Chief Executive Officer in 1988.
Mr. Lee graduated from the University of Wales in 1980 and qualified as a
Chartered Accountant with Deloitte Haskins & Sells in 1982. He joined John
Govett in 1987 and was appointed Finance Director in 1991. From November 1993
until January 1995, he was on special assignment in the United States working
with an insurance-related affiliate of John Govett. He is responsible for the
financial control, compliance and administrative functions at John Govett.
1
<PAGE>
Mr. Kreidewolf joined John Govett in 1981. He became a member of the
Institute of Chartered Secretaries and Administrators in England and Wales in
1986. Currently he is responsible for the management of reporting functions for
John Govett's United Kingdom and U.S. retail funds.
Effective December 20, 1995, Deborah Kemper resigned as Vice President of
the Funds.
* * * * * * * * * *
Effective January 2, 1996, the offices of The Govett Funds, Inc. will
relocate to:
250 Montgomery Street, 12th Floor
San Francisco, CA 94104
Telephone: 415/263-1865
FAX: 415/263-1880
Please note that there is no change in the address of any service provider
to the Funds or to any other address shown in the Funds' current prospectus. In
addition, all shareholder service and new account inquiries should continue to
be addressed as directed in the prospectus.
2
