<PAGE>
Filed Pursuant to Rule 497(e) as amended by Regulation S-T
File Nos. 811-6229; 33-37783
- --------------------------------------------------------------------------------
GOVETT FUNDS
SUPPLEMENT DATED DECEMBER 7, 1998
TO THE CLASS A RETAIL SHARES PROSPECTUS DATED DECEMBER 7, 1998
EFFECTIVE THROUGH DECEMBER 31, 1998
- --------------------------------------------------------------------------------
SUMMARY OF INVESTOR COSTS.
The following paragraphs are substituted for the similarly identified paragraphs
in the section "Summary of Investor Costs" through December 31, 1998. The table
on page 5 in the prospectus shows investor costs effective January 1, 1999.
"B. ANNUAL OPERATING EXPENSES FOR CLASS A OF EACH FUND
<TABLE>
<CAPTION>
TOTAL OPERATING
OTHER EXPENSES EXPENSES
(AFTER (AFTER
FUND MANAGEMENT FEE 12B-1 FEES REIMBURSEMENT)/2/ REIMBURSEMENT)/2/
- -------------------------- -------------- ---------- ----------------- -----------------
<S> <C> <C> <C> <C>
International Equity 1.00% 0.35% 1.15% 2.50%
Emerging Markets Equity 1.00% 0.35% 1.15% 2.50%
International Smaller
Companies 1.00% 0.35% 1.15% 2.50%
Smaller Companies 1.00% 0.35% 0.60% 1.95%
Global Income 0.75% 0.35% 0.65% 1.75%
</TABLE>
The Investment Manager has agreed to reduce its management fees and to pay
certain Fund operating expenses through December 31, 1998 to the extent
necessary to limit total annual Fund Operating Expenses to the percentages
listed above under "Total Operating Expenses". Long-term Fund shareholders may
pay more than the economic equivalent of the maximum front-end sales charge
otherwise permitted by the National Association of Securities Dealers, Inc.
("NASD").
C. EXAMPLES OF EXPENSES
Assuming the current fee waivers and expense limitations remain in effect, you
would pay the following expenses on a $1,000 investment assuming (1) 5% annual
return/3/ and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------- ------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
International Equity $25 $78 $133 $284
Emerging Markets Equity 25 78 133 284
International Smaller
Companies 25 78 -- --
Smaller Companies 20 61 105 227
Global Income 18 55 95 206
</TABLE>
The above tables are not intended to reflect precisely the fees and expenses
associated with a particular person's investment in Class A Retail shares of the
Funds. THE TABLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
FUND EXPENSES, AND ACTUAL FUND EXPENSES MAY BE GREATER OR LESSER THAN THOSE
SHOWN IN THE TABLES. Rather, the tables have been provided only to assist
investors in understanding the various costs and expenses that a shareholder
will bear, directly or indirectly, in connection with an investment in the
Funds."
<PAGE>
Filed Pursuant to Rule 497(e) as amended by Regulation S-T
File Nos. 811-6229; 33-37783
- --------------------------------------------------------------------------------
GOVETT FUNDS
SUPPLEMENT DATED DECEMBER 7, 1998
TO THE INSTITUTIONAL CLASS PROSPECTUS DATED DECEMBER 7, 1998
EFFECTIVE THROUGH DECEMBER 31, 1998
- --------------------------------------------------------------------------------
SUMMARY OF INVESTOR COSTS.
The following paragraphs are substituted for the similarly identified paragraphs
in the section "Summary of Investor Costs" through December 31, 1998. The table
on page 3 in the prospectus shows investor costs effective January 1, 1999.
"B. ANNUAL OPERATING EXPENSES FOR INSTITUTIONAL CLASS OF EACH FUND
<TABLE>
<CAPTION>
TOTAL OPERATING
OTHER EXPENSES EXPENSES
(AFTER (AFTER
FUND MANAGEMENT FEE 12B-1 FEES REIMBURSEMENT)/2/ REIMBURSEMENT)/2/
- -------------------------- -------------- ---------- ----------------- -----------------
<S> <C> <C> <C> <C>
International Equity 1.00% NONE 0.75% 1.75%
Emerging Markets Equity 1.00% NONE 0.75% 1.75%
International Smaller
Companies 1.00% NONE 0.75% 1.75%
Smaller Companies 1.00% NONE 0.20% 1.20%
Global Income 0.75% NONE 0.40% 1.15%
</TABLE>
The Investment Manager has agreed to reduce its management fees and to pay
certain Fund operating expenses through December 31, 1998 to the extent
necessary to limit total annual Fund Operating Expenses. With respect to all
Funds, the amount of that limitation is the percentage listed above under "Total
Operating Expenses" for such Fund.
C. EXAMPLES OF EXPENSES
Assuming the current fee waivers and expense limitations remain in effect, you
would pay the following expenses on a $1,000 investment assuming (1) 5% annual
return/3/ and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
FUND 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------------------------------- ------------------- ------------------- ------------------- -------------------
<S> <C> <C> <C> <C>
International Equity $18 $55 $95 $206
Emerging Markets Equity 18 55 95 206
International Smaller
Companies 18 55 -- --
Smaller Companies 12 38 66 145
Global Income 12 37 63 140
</TABLE>
The above tables are not intended to reflect precisely the fees and expenses
associated with a particular person's investment in Institutional Class shares
of the Funds. THE TABLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF
PAST OR FUTURE FUND EXPENSES, AND ACTUAL FUND EXPENSES MAY BE GREATER OR LESSER
THAN THOSE SHOWN IN THE TABLES. Rather, the tables have been provided only to
assist investors in understanding the various costs and expenses that a
shareholder will bear, directly or indirectly, in connection with an investment
in the Funds."
