MENTOR FUNDS
Mentor Institutional U.S. Government Money Market Portfolio
SUPPLEMENT
to Prospectus dated January 17, 1998
First Union Corporation. The second and third paragraphs appearing in the
section of the Prospectus entitled "Management" are replaced in their entirety
with the following:
"Mentor Investment Advisors, LLC has over $12 billion in assets under
management. Mentor Advisors is a wholly owned subsidiary of Mentor
Investment Group, LLC ("Mentor Investment Group"), and its affiliates.
Mentor Investment Group is a subsidiary of Wheat First Butcher Singer,
Inc., which is in turn a wholly owned subsidiary of First Union Corp.
("First Union"). First Union is a leading financial services company with
approximately $157 billion in assets and $12 billion in total stockholders'
equity as of December 31, 1997. EVEREN Capital Corporation has a 20%
ownership in Mentor Investment Group and may acquire additional ownership
based principally on the amount of Mentor Investment Group's revenues
derived from assets attributable to clients of EVEREN Securities, Inc. and
its affiliates."
Mentor Distributors, LLC. Mentor Distributors, LLC ("Mentor
Distributors"), 3435 Steizer Road, Columbus, Ohio 43219, is a wholly owned
subsidiary of BISYS Fund Services, Inc.
Mentor Services Company, Inc. Mentor Services Company, Inc., a wholly
owned subsidiary of Mentor Investment Group, provides marketing-related
services in respect of the Portfolio. Mentor Services Company, Inc. and its
affiliates will receive from Mentor Distributors substantially all amounts
received or retained by Mentor Distributors in respect of the distribution of
the Portfolio's shares, including any amounts paid to Mentor Distributors under
the Portfolio's Distribution Plans.
If you would like additional information concerning the Portfolio, call
Mentor Services Company, Inc. at 1-800-382-0016.
February 1, 1998
