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Filed Pursuant to Rule 497(e) as amended by Regulation S-T
File Nos. 811-6229; 33-37783
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GOVETT FUNDS
SUPPLEMENT DATED DECEMBER 26, 1997
TO THE CLASS A AND B PROSPECTUS DATED SEPTEMBER 1, 1997,
TO THE INSTITUTIONAL CLASS PROSPECTUS DATED SEPTEMBER 1, 1997,
AND
TO THE STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 1, 1997
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THE FOLLOWING INFORMATION MODIFIES THE MATERIAL PRESENTED REGARDING THE NAME OF
CERTAIN SERIES OF THE GOVETT FUNDS, INC.
Effective December 22, 1997, Govett Pacific Strategy Fund changed its name
to Govett Asia Fund and Govett Emerging Markets Fund changed its name Govett
Emerging Markets Equity Fund. Please read the Prospectuses and Statement of
Additional Information taking these name changes into consideration.
THE FOLLOWING INFORMATION MODIFIES THE DIVISION "ABOUT YOUR ACCOUNT" IN THE
PROSPECTUS RELATING TO CLASS A AND B SHARES AND THE PARTICULAR SECTIONS NOTED
BELOW IN ITALICS:
How to Buy Shares
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Effective January 1, 1998, the minimum initial investment for new investors
("Second Stage Shareholders") in any series (the "Funds") of The Govett Funds,
Inc. (the "Company") will be $5,000 with required subsequent investments of
$1,000 or more. For existing shareholders of record as of the close of business
on December 31, 1997 ("First Stage Shareholders"), the investment minimums for
identically registered accounts remain those in effect when they initially
invested in any Govett Fund; specifically, $500 minimum initial investment into
another Fund of the Company and subsequent investment of $25 or more. Identical
purchase minimums are required for IRAs.
Automatic Investment Plan
Second Stage Shareholders may buy shares of a Fund through the Automatic
Investment Plan with an initial amount of at least $5,000 and $100 thereafter,
per Fund, to be invested on a regular basis. For First Stage Shareholders the
initial amount for an Automatic Investment Plan remains at least $100 and $25
thereafter, per Fund, to be invested on a regular basis.
How to Make Exchanges
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Automatic Exchange Plan
Investors may exchange Fund shares through the Automatic Exchange Plan.
For Second Stage Shareholders, there is a $5,000 minimum for establishing a new
account and a $100 minimum for an existing account. For First Stage
Shareholders, the minimum remains $100 for a new Fund in an identically
registered account and the minimum for an existing Fund remains $25.
How to Redeem Shares
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Systematic Withdrawal Plan
For Second Stage Shareholders, a systematic withdrawal plan is available to
shareholders whose accounts total $50,000 or more with specified monthly,
quarterly, semi-annual or annual payments to a designated party of any amount
selected with a minimum of $100. For First Stage Shareholders, a systematic
withdrawal plan continues to be available to shareholders whose accounts total
$5,000 or more with specified monthly, quarterly, semi-annual or annual payments
to a designated party of any amount selected with a minimum of $25.
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Filed Pursuant to Rule 497(e) as amended by Regulation S-T
File Nos. 811-6229; 33-37783
THE FOLLOWING INFORMATION MODIFIES THE MATERIAL PRESENTED REGARDING THE
INVESTMENT MANAGER.
In 1997, AIB Asset Management Holdings Limited ("AIBAMH") made several
adjustments to its operating structure in order to more effectively provide
investment management services to its clients around the world. A new U.S.
company, AIB Govett, Inc. ("AIB Govett"), was formed to proved these services to
North American clients. In addition, John Govett & Co. Limited, which had
served as investment manager to the Funds, changed its name to AIB Govett Asset
Management Limited ("AIB Govett London"). AIB Govett and AIB Govett London are
wholly-owned subsidiaries of AIBAMH.
Effective January 1, 1998, AIB Govett will be investment advisor to the
Funds with AIB Govett London serving as investment subadviser to all Funds. The
reorganization did not result in any change of actual control or management of
AIB Govett London or in any change in management of the Funds. In particular,
the same individuals who provided services to the Funds prior to the
reorganization continue to provide the same services.
The terms of the New Advisory Agreements are substantially similar to the
Former Advisory Agreement. The investment management fees paid by the Funds are
not affected by the change in investment advisory responsibility from AIB Govett
London to AIB Govett.
THE FOLLOWING INFORMATION MODIFIES THE INFORMATION PRESENTED IN RESPECT OF THE
12B-1 DISTRIBUTION PLAN ADOPTED FOR CLASS A OF EACH FUND.
Pursuant to Rule 12b-1, the Board of Directors of the Company has approved
a modification of the existing Class A 12b-1 Plan, effective February 1, 1998,
which reduces the ongoing distribution fee paid by each Fund to the Distributor
to an annual rate of 0.35% of each Fund's aggregate average daily net assets
attributable to its Class A shares.
THE FOLLOWING INFORMATION MODIFIES THE "PORTFOLIO MANAGEMENT" SECTION WITH
RESPECT TO THE ASIA FUND (FORMERLY THE PACIFIC STRATEGY FUND).
The lead portfolio manager of Asia Fund is Jane Pickard. Previously, she
was a key senior member of the team managing the Asia Fund. She joined AIB
Govett London in 1996. She graduated from Edinburgh University with a degree in
law and politics.
