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Rembrandt Funds(R)
Supplement dated October 11, 1996 to
Prospectus dated April 30, 1996
This Supplement provides new and additional information beyond that contained in
the Prospectus and should be retained and read in conjunction with such
Prospectus.
At a meeting on September 20, 1996, the Board of Trustees of the Rembrandt
Funds(R) (the "Trust") approved a new category of investors eligible for a sales
charge waiver. In connection with this addition, the following disclosure is
added to the Eligibility for Reduced Sales Charge, Other Circumstances section
on page 17 of the Trust's prospectus:
"; and (xi) existing customers of LaSalle National Bank and its banking
affiliates."
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The first paragraph under The Administrator section on page 37 of the
prospectus should be replaced with the following:
"SEI Fund Resources (the "Administrator"), a Delaware business trust,
provides the Trust with administrative services, including fund accounting,
regulatory reporting, necessary office space, equipment, personnel and
facilities. SEI Financial Management Corporation, a wholly-owned subsidiary of
SEI Corporation ("SEI"), is the owner of all beneficial interest in the
Administrator."
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The "OPTIONS," "STOCK INDEX FUTURES," "SWAPS, CAPS, FLOORS AND COLLARS" and
"WHEN-ISSUED AND DELAYED DELIVERY SECURITIES" sections of the Description of
Permitted Investments and Risk Factors have been revised to remove the
requirement that any segregated account maintained by the Trust in connection
with these investments contain high grade debt securities.
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Effective September 1996, the Portfolio Manager for the Intermediate
Government Fixed Income Fund and Limited Volatility Fixed Income Fund is Mark W.
Karstom and the Portfolio Manager for the Tax-Exempt Fixed Income Fund and the
fixed income portion of the Balanced Fund is Charles H. Self, III. The seventh
and eighth paragraphs on page 36 of the prospectus should be replaced with the
following:
"Mark W. Karstrom, Vice President of the Advisor, has served as
portfolio manager for the Intermediate Government Fixed Income Fund and the
Limited Volatility Fixed Income Fund since September, 1996. Mr. Karstrom
joined the Advisor in August 1996. He served as a Vice President,
Portfolio Manager with Norwest and a predecessor firm from May, 1985 to
July, 1996.
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"Charles H. Self, III, Senior Vice President of the Advisor, has
served as portfolio manager for the Fixed Income Fund since October, 1995
and the Tax-Exempt Fixed Income Fund and the fixed income portion of the
Balanced Fund since September, 1996. Mr. Self joined the Advisor in
October, 1995. He served as a Vice President with CSI Asset Management from
December, 1988 to July, 1995."
Effective June 1996, the Portfolio Manager for the Global Fixed Income
Fund is Rogier Crijns. The fifth paragraph on page 37 under the heading "The
Sub-Advisor" of the prospectus should be replaced with the following:
"Mr. Rogier Crijns, an officer of the Sub-Advisor, has served as
portfolio manager for the Global Fixed Income Fund since June 1996. Mr.
Crijns has worked as a portfolio manager since 1985 and has served as a
portfolio manager within the ABN AMRO network since 1990."
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
Rembrandt Funds(R)
Supplement dated October 11, 1996 to
Statement of Additional Information dated April 30, 1996
This Supplement provides new and additional information beyond that contained
in the Statement of Additional Information and should be retained and read in
conjunction with such Statement of Additional Information.
The Board of Trustees of the Rembrandt Funds(R) (the "Trust") approved the
following changes to the Trust's restricted securities and illiquid securities
guidelines at their September 20, 1996 meeting.
The first two sentences under the heading Restricted Securities on page 11 of
the Statement of Additional Information should be replaced with the following:
"Restricted securities are securities that may not be sold to the public
without registration under the Securities Act of 1933 (the "1933 Act")
absent an exemption from registration. Up to 10% of a Fund's assets may
consist of restricted securities that are illiquid, and the Advisor may
invest up to an additional 5% of the total assets of a Fund in restricted
securities provided it determines that at the time of investment such
securities are not illiquid (generally, an illiquid security cannot be
disposed of within seven days in the ordinary couse of business at its
full value), based on guidelines and procedures developed and established
by the Board of Trustees of the Trust."
The first sentence under #2 under the heading Non-Fundamental Policies on page
15 in the Statement of Additional Information should be replaced with the
following:
[No Fund may]
"2. Invest in illiquid securities in an amount exceeding, in the
aggregate, 15% of the Fund's assets (except for all Money Market Funds
and the Tax-Exempt Fixed Income Fund, for which the limit is 10%)."
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The When-Issued Securities section on page 11 and the Swaps, Caps and Floors
section on page 13 of the Statement of Additional Information have been
revised to
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remove the requirement that any segregated account maintained by the Trust in
connection with these investments contain high grade debt securities.
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The first two paragraphs under The Administrator section on page 19 of the
Statement of Additional Information should be replaced with the following:
"The Trust and SEI Fund Resources (the "Administrator"), a wholly-owned
subsidiary of SEI Corporation ("SEI") have entered into an Administration
Agreement (the "Administration Agreement"). The Administration Agreement
provides that the Administrator shall not be liable for any error of
judgment or mistake of law or for any loss suffered by the Trust in
connection with the matters to which the Administration Agreement relates,
except a loss resulting from willful misfeasance, bad faith or gross
negligence on the part of the Administrator in the performance of its
duties or from reckless disregard by it of its duties and obligations
thereunder.
"The Administrator, a Delaware business trust, has its principal business
offices at 680 East Swedesford Road, Wayne, Pennsylvania 19087-1658. SEI
Financial Management Corporation (ASFM@), a wholly-owned subsidiary of SEI
Corporation (ASEI@), is the owner of all beneficial interest in the
Administrator. SEI and its subsidiaries and affiliates, including the
Administrator, are leading providers of funds evaluation services, trust
accounting systems, and brokerage and information services to financial
institutions, institutional investors and money managers. The Administrator
and its affiliates also serve as administrator to the following other
mutual funds: The Achievement Funds Trust; The Advisors' Inner Circle Fund;
The Arbor Fund; ARK Funds; Bishop Street Funds; CoreFunds, Inc.;
CrestFunds, Inc.; CUFUND; FMB Funds, Inc.; First American Funds, Inc.;
First American Investment Funds, Inc.; Inventor Funds, Inc; Marquis
Funds(R); Monitor Funds; Morgan Grenfell Investment Trust; The PBHG Funds,
Inc.; The Pillar Funds; 1784 Funds(R); SEI Asset Allocation Trust; SEI
Daily Income Trust; SEI Index Funds; SEI Institutional Investments Trust;
SEI Institutional Managed Trust; SEI International Trust; SEI Liquid Asset
Trust; SEI Tax Exempt Trust; Stepstone Funds; STI Classic Funds; STI
Classic Variable Trust; and Turner Funds."
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
