<PAGE>
THE ARBOR FUND
THE OVB FUNDS
Supplement dated September 15, 1997
to the Prospectus dated May 31, 1997
The Prospectus dated May 31, 1997 is hereby amended and supplemented by
inserting the following section before the section "TAXES" on page 22:
PERFORMANCE INFORMATION FOR PREDECESSOR COMMON TRUST FUNDS
The Capital Appreciation, Emerging Growth, Government Securities and West
Virginia Portfolios are successors to Common Trust Funds K, S, D and I,
respectively, (the "Common Trust Funds") managed by One Valley. A substantial
portion of the assets of the appropriate Common Trust Fund was transferred to
the respective Portfolio in connection with its commencement of operations. Set
forth below is certain performance data for the Portfolios that includes periods
during which they were operated as common trust funds. The performance for
periods during which the Portfolios existed as Common Trust Funds is deemed
relevant because each respective Common Trust Fund was managed using virtually
the same investment objective, policies and restrictions as those used by the
corresponding Portfolio. The performance data, however, is not necessarily
indicative of the future performance of the Portfolios. Further, the predecessor
Common Trust Funds were not subject to certain investment limitations and
restrictions imposed by the 1940 Act and the Code, which, if applicable, may
have adversely affected the performance results of the Common Trust Funds.
The predecessor Common Trust Funds did not incur expenses that correspond to the
advisory, administrative, and other fees to which the Portfolios are subject.
Accordingly, the following performance information has been adjusted by applying
the total expense ratio and sales charges for each class of the Portfolios, as
disclosed under "Expense Summary" above, which reduced the actual performance of
the Portfolios.
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TOTAL RETURNS FOR THE PORTFOLIOS
AND
STANDARD BENCHMARK INDICES
FOR THE PERIOD ENDED JUNE 30, 1997
<TABLE>
<CAPTION>
PORTFOLIOS/BENCHMARKS 1 YEAR 5 YEARS 10 YEARS
- -------------------------------------------------------------- --------- ---------- -----------
<S> <C> <C> <C>
Capital Appreciation Portfolio 17.35% 14.52% 11.48%
BENCHMARK--STANDARD & POOR'S 500 COMPOSITE STOCK INDEX 34.68% 19.75% 14.62%
Emerging Growth Portfolio (13.40%) 14.42% 13.88%
BENCHMARK--FRANK RUSSELL 2000 GROWTH INDEX 4.60% 15.13% 8.95%
Government Securities Portfolio 7.04% 7.63% 8.43%
BENCHMARKS--LEHMAN GOVERNMENT/CORPORATE INDEX 7.75% 7.23% 8.72%
LIPPER INTERMEDIATE INVESTMENT--GRADE DEBT FUNDS AVERAGE 7.54% 6.40% 8.14%
West Virginia Portfolio 7.51% 5.62% 6.50%
BENCHMARKS--LIPPER INTERMEDIATE TERM MUNICIPAL DEBT FUNDS
AVERAGE 6.55% 5.95% 6.88%
LIPPER GENERAL MUNICIPAL DEBT FUNDS AVERAGE 7.81% 6.51% 7.76%
</TABLE>
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(1) The Capital Appreciation Portfolio was converted from Common Trust Fund
K on December 30, 1993. The Emerging Growth Portfolio was converted from Common
Trust Fund S on December 29, 1993. The Government Portfolio was converted from
Common Trust Fund D on December 30, 1993. The West Virginia Portfolio was
converted from Common Trust Fund I on December 17, 1993.
The Standard & Poor's 500 Composite Stock Index is a market capitalization
weighted index composed of widely held common stocks listed on the New York
Stock Exchange, American Stock Exchange, and Over-The-Counter market. The Frank
Russell 2000 Growth Index measures the performance of those Russell 2000 (an
unmanaged index comprised of 2000 domestically traded common stocks of small
capitalization companies) companies with higher than market average
price-to-book ratios and higher than market average forecasted growth values.
The Lehman Government/Corporate Index is an aggregate of the Lehman Government
and Corporate Indices, including U.S. government treasury and agency securities,
corporate and yankee bonds. The Lipper Intermediate Investment-Grade Debt Funds
Average is an index comprised of mutual funds that invest at least 65% of their
assets in investment-grade debt issues (rated in top four ratings categories)
with dollar-weighted average maturities of five to ten years. The Lipper
Intermediate-Term Municipal Debt Funds Average is an index comprised of mutual
funds that invest in municipal debt issues with dollar-weighted average
maturities of five to ten years. The Lipper General Municipal Debt Funds Average
is an index comprised of mutual funds that invest at least 65% of their assets
in municipal debt issues in the top four credit ratings categories. The
comparison of the Portfolios with these indices is meant to provide you with a
general sense of how the Portfolios compared to standard benchmarks of the
market. The indices are paper calculations and do not reflect any expenses that
generally accompany an investment in common trust funds or mutual funds such as
sales charges, expenses for fund operation, management fees and portfolio
transaction costs.
The past performance of the Portfolios is no guarantee of their future
performance.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
OVB-A-009-01
