<PAGE>
AIG MONEY MARKET FUND
A Series of
THE ADVISORS' INNER CIRCLE FUND
Supplement Dated October 15, 1996 to the
Class A Prospectus Dated February 28, 1996
Effective October 3, 1996, the Adviser has voluntarily agreed to waive a portion
of its fee. As a result of these waivers, the following information replaces
the Annual Operating Expenses and Example on page 3 of the Prospectus.
ANNUAL OPERATING EXPENSES
(as a percentage of average net assets) AIG Money Market Fund
Class A
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Advisory Fees (after fee waivers) (2) .15%
Other Expenses .17%
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Total Operating Expenses (after fee waivers)(2) .32%
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(2) As restated. The Adviser has, on a voluntary basis, agreed to waive 10
basis points (.10%) of its fee, and to waive additional fees and/or
reimburse certain expenses of the Portfolio so that the total expense
ratio does not exceed .40%. The Adviser reserves the right to terminate
its waiver or any reimbursements at any time upon sixty days' notice to
the Portfolio in its sole discretion. Absent waivers, advisory fees for
the Class A shares of the Portfolio would be .25%, and total operating
expenses, which include advisory fees, would be .42% of the average daily
net assets of the Portfolio on an annualized basis.
EXAMPLE
AIG Money Market Fund
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1 year 3 years 5 years 10 years
An investor would pay the following
expenses on a $1,000 investment
assuming (1) 5% annual return and
(2) redemption at the end of each
time period:
$3 $10 $18 $41
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The example should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown. The purpose
of the expense table and example is to assist the investor in understanding the
various costs and expenses that may be directly or indirectly borne by
shareholders of the Portfolio. The information set forth in the foregoing table
and example relates only to the Class A shares. The Portfolio also offers Class
B shares which are subject to the same expenses except that they are also
subject to certain distribution expenses. Additional information may be found
under "The Adviser" and "The Administrator."
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
AIG-A-001-01
<PAGE>
AIG MONEY MARKET FUND
A Series of
THE ADVISORS' INNER CIRCLE FUND
Supplement Dated October 15, 1996 to the
Class B Prospectus Dated February 28, 1996
Effective October 3, 1996, the Adviser has voluntarily agreed to waive a portion
of its fee. As a result of this waiver, the following information replaces the
Annual Operating Expenses and Example on pages 4 and 5 of the Prospectus.
ANNUAL OPERATING EXPENSES
(as a percentage of average net assets) AIG Money Market Fund
Class B
- -----------------------------------------------------------------------------
Advisory Fees (after fee waivers) (2) .15%
12b-1 Fees .35%
Other Expenses .17%
- -----------------------------------------------------------------------------
Total Operating Expenses (after fee waivers)(2) .67%
- -----------------------------------------------------------------------------
(2) As restated. The Adviser has, on a voluntary basis, agreed to waive 10
basis points (.10%) of its fee, and to waive additional fees and/or
reimburse certain expenses of the Portfolio so that the total expense
ratio does not exceed .75%. The Adviser reserves the right to terminate
its waiver or any reimbursements at any time upon sixty days' notice to
the Portfolio in its sole discretion. Absent waivers, advisory fees for
the Class B shares of the Portfolio would be .25% and total operating
expenses, which include advisory fees, would be .77% of the average daily
net assets of the Portfolio on an annualized basis.
EXAMPLE
AIG Money Market Fund
- --------------------------------------------------------------------------------
1 year 3 years 5 years 10 years
- --------------------------------------------------------------------------------
An investor would pay the following
expenses on a $1,000 investment
assuming (1) 5% annual return and
(2) redemption at the end of each
time period:
Class B $7 $21 $37 $83
- --------------------------------------------------------------------------------
The example should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown. The purpose
of the expense table and example is to assist the investor in understanding the
various costs and expenses that may be directly or indirectly borne by
shareholders of the Portfolio. The information set forth in the foregoing table
and example relates only to the Class B shares. The Portfolio also offers Class
A shares which are subject to the same expenses except that they are not subject
to distribution fees. Additional information may be found under "The Adviser"
and "The Administrator."
Long-term Class B shareholders may eventually pay more than the economic
equivalent of the maximum front-end sales charges otherwise permitted by the
Conduct Rules of the National Association of Securities Dealers, Inc. (The
"NASD").
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
AIG-A-002-01
