<PAGE>
THIS SUPPLEMENT SUPERCEDES THE SUPPLEMENT DATED JANUARY 13, 1999
The Munder Funds
Supplement Dated August 10, 1999
to Prospectus Dated October 27, 1998
Class A, B and C Shares of:
Munder Balanced Fund, Munder Growth & Income Fund, Munder Growth Opportunities
Fund, Munder International Equity Fund, Munder Micro-Cap Equity Fund, Munder
Multi-Season Growth Fund, Munder NetNet Fund, Munder Real Estate Equity
Investment Fund, Munder Small-Cap Value Fund, Munder Small Company Growth
Fund, Munder Value Fund, Munder Framlington Emerging Markets Fund, Munder
Framlington Global Financial Services Fund, Munder Framlington Healthcare Fund
and Munder Framlington International Growth Fund
CHANGE OF INVESTMENT OBJECTIVE AND POLICIES FOR MICRO-CAP EQUITY FUND
The Board of Directors of The Munder Funds, Inc. has changed the investment
objective of the Munder Micro-Cap Equity Fund from long term capital
appreciation to capital appreciation and approved certain changes to the
Fund's investment policies, as set forth below. The description of the Munder
Micro-Cap Equity Fund in the prospectus is hereby deleted in its entirety and
replaced with the following:
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide capital
appreciation. It invests primarily in Equity Securities of small
capitalization companies. The Fund attempts to provide investors with
potentially higher returns than a fund that invests primarily in larger, more
established companies. Since smaller capitalization companies are generally
not as well known to investors and have less of an investor following than
larger companies, they may provide higher returns due to inefficiencies in the
marketplace.
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities of companies having a market capitalization
within the market capitalization range of companies included in the
Wilshire Micro-Cap Index. As of the date of this Supplement, such
capitalizations do not exceed approximately $300 million, which is
considerably less than the market capitalization of S&P 500 companies.
The Advisor will choose companies that:
. present the ability to grow significantly
. may benefit from changes in technology, regulations and industry sector
trends
.are still in the developmental stage and may have limited product lines.
There is no limit on the length of operating history for the companies in
which the Fund may invest. The Fund may invest without limit in initial public
offerings of small capitalization companies.
PORTFOLIO MANAGEMENT. A committee of professional portfolio managers
employed by the Advisor makes investment decisions for the Fund.
CHANGE OF INVESTMENT POLICY FOR SMALL-CAP VALUE FUND
The Board of Directors of The Munder Funds, Inc. has changed the investment
policy of the Munder Small-Cap Value Fund to increase the market
capitalization of the issuers considered to be small-cap companies.
Accordingly, the second paragraph of the description of the Munder Small-Cap
Value Fund in the prospectus is hereby deleted and replaced with the
following:
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities of companies with market capitalizations
within the market capitalization range of companies included in the
Russell 2000 Index. As of the date of this Supplement, such
capitalizations do not exceed approximately $1.5 billion, which is less
than the market capitalization of S&P 500 companies.
WHAT ARE THE RISKS OF INVESTING IN THE FUNDS ?
The Boards of Directors/Trustees of The Munder Funds have approved the
following addition to the above-referenced provision of the prospectus:
The Funds may from time to time engage in short-term trading in Equity
Securities, including initial public offerings. Such short-term trading may
result in increased transaction costs and expenses and the realization of
short-term capital gains and losses.
<PAGE>
RESTRICTIONS ON EXCESSIVE PURCHASE AND EXCHANGE TRANSACTIONS
The Funds have determined to institute the following amendment to their
policies concerning purchase and exchange transactions in order to limit
excessive trading in shares of the Funds:
The exchange privilege is not intended as a vehicle for short-term trading.
Excessive exchange activity may interfere with portfolio management and have
an adverse effect on all shareholders. Each Fund and its distributor reserve
the right to refuse any purchase or exchange request that could adversely
affect the fund or its operations, including those from any individual or
group who, in the Fund's view, is likely to engage in excessive trading or any
order considered market-timing activity. If a Fund refuses a purchase or
exchange request and the shareholder deems it necessary to redeem their
account, any CDSC as permitted by the prospectus will be applicable.
Additionally, in no event will any Fund permit more than six exchanges into
or out of a Fund in any one-year period per account, tax identification
number, social security number or related investment group. The Munder Money
Market Funds are exempt from this policy. Please see "How Can I Exchange
Shares?" in the prospectus for additional information concerning exchanges.
CHANGE OF INVESTMENT ADVISOR FOR INTERNATIONAL EQUITY FUND
Effective August 3, 1999, the Board of Directors of The Munder Funds, Inc.
has approved World Asset Management, Inc. ("WAM") as investment advisor to the
Fund.
WAM, with its principal offices at 255 East Brown Street, Birmingham,
Michigan 48009-6208, is a wholly-owned subsidiary of Munder Capital
Management. As of June 30, 1999, WAM had approximately $20.4 billion in assets
under management, of which $15.96 billion were invested in domestic equity
securities, $3.9 billion were invested in international equity securities and
$0.5 billion were invested in other fixed income securities.
WAM is entitled to receive an annual fee equal to 0.75% of the
International Equity Fund's average daily net assets.
ADDITION OF CO-MANAGER FOR GROWTH & INCOME FUND
Geoffrey A. Wilson has been appointed co-manager of the Growth & Income
Fund. Mr. Wilson is a Senior Portfolio Manager of the Advisor and has managed
individual, foundation and endowment portfolios in the Advisor's Private
Management Group since 1985.
ADDITION OF CO-MANAGER FOR MULTI-SEASON GROWTH FUND
John P. Richardson has been appointed co-manager of the Multi-Season Growth
Fund. Mr. Richardson, Senior Partner & Director of Equity Portfolio
Management, has managed equity and balanced portfolios since joining the
Advisor in 1985.
PORTFOLIO MANAGEMENT OF SMALL-CAP VALUE FUND
Edward Eberle and Brian Wall jointly manage the Fund. Mr. Eberle, who has
managed the Fund since March 1997, was formerly the primary analyst for the
Fund. Prior to joining the Advisor in 1995, he was an Executive Vice President
and Portfolio Manager for Westpointe Financial Corporation. Mr. Wall, who has
managed the Fund since January 1998, was formerly a primary analyst for the
Fund. Prior to joining the Advisor in 1995, he was a Senior Equity Analyst
with Woodbridge Capital Management, Inc. (1994-1995).
PORTFOLIO MANAGEMENT OF VALUE FUND
Gerald Seizert and John S. Adams jointly manage the Fund. Mr. Seizert, a
Chief Investment Officer-Equities of the Advisor, has managed the Fund since
it commenced operations. Prior to joining the Advisor in 1995, Mr. Seizert was
a Director and Managing Partner of Loomis, Sayles & Company, L.P. Mr. Adams is
a Senior Portfolio Manager of the Advisor and has managed the Fund since
August 1999. Mr. Adams has managed institutional equity and balanced
portfolios for the advisor since 1987.
<PAGE>
CHANGE OF ADDRESS
Please send your Account Application, exchange order or redemption request
by mail to: The Munder Funds, c/o First Data Investor Services Group, P.O. Box
60428, King of Prussia, Pennsylvania 19406-0428.
FUND HIGHLIGHTS
The "FUND HIGHLIGHTS--What Are the Key Facts Regarding the Funds? --What
are the options for investment in the Funds?" section in the prospectus is
hereby deleted in its entirety and replaced with the following:
Q: What are the options for investment in the Funds?
A:Each Fund, other than the NetNet Fund, offers five different investment
options, or classes: Class A, B, C, K and Y. The NetNet Fund offers four
different investment options, or classes: Class A, B, C and Y. Class K and Y
shares, which are only offered to institutional and other qualified investors,
are offered in other prospectuses.
<TABLE>
<S> <C> <C> <C>
Maximum Front Maximum
Class Rule 12b-1 Fees* End Sales Load** CDSC***
----- ---------------- ----------------- --------
Class A 0.25% 5.5% None+
Class B 1% None 5%
Class C 1% None 1%, if redeemed within 1 year of purchase
</TABLE>
- -------
*An annual fee for distributing shares and servicing shareholder accounts
based on the Fund's average daily net assets.
**A one-time fee charged at the time of purchase of shares. The fee declines
based on the amount you invest.
***A contingent deferred sales charge ("CDSC") is a one-time fee charged at
the time of redemption. The fee declines based on the length of time you
hold the shares.
+A CDSC of 1% is imposed on certain redemptions of Class A Shares if
redeemed within one year of purchase.
(i) If you invest over $250,000, you must buy Class A or Class C Shares.
(ii) Class B Shares convert automatically to Class A Shares after six years.
Due to the level of Rule 12b-1 fees and the CDSC on Class B Shares versus
Class A or Class C Shares, both (i) and (ii) are to your economic benefit.
FUND OPERATING EXPENSES
The "FUND OPERATING EXPENSES" section in the prospectus with respect to the
Munder NetNet Fund is hereby deleted and replaced with the following:
<TABLE>
<CAPTION>
NetNet Fund
---------------------------
ANNUAL FUND OPERATING EXPENSES Class A Class B Class C
(as a % of average net assets) Shares Shares Shares
- ------------------------------ ------- ------- -------
<S> <C> <C> <C>
Advisory Fees..................................... 1.00% 1.00% 1.00%
12b-1 Fees........................................ .25% 1.00% 1.00%
Other Expenses.................................... .31%** .31%** .31%**
---- ---- ----
Total Fund Operating Expenses..................... 1.56%** 2.31%** 2.31%**
==== ==== ====
</TABLE>
- -------
**The Advisor has voluntarily reimbursed the Fund for certain operating
expenses. In the absence of such expense reimbursements, the total fund
operating expenses would be 2.12%--Class A Shares, 2.60%--Class B Shares
and 2.60%--Class C Shares.
<PAGE>
EXAMPLE
The "EXAMPLE" section in the prospectus is hereby deleted in its entirety
and replaced with the following:
This example shows the amount of expenses you would pay (directly or
indirectly) on a $1,000 investment in the Fund assuming (1) a 5% annual
return, (2) redemption at the end of the time periods (including the deduction
of the deferred sales charge, if any) and (3) no redemption at the end of the
time periods. This example is not a representation of past or future
performance or operating expenses; actual performance or operating expenses
may be larger or smaller than those shown.
<TABLE>
<CAPTION>
Growth Opportunities
Balanced Fund Growth & Income Fund Fund
----------------------- ----------------------- -----------------------
Class A Class B Class C Class A Class B Class C Class A Class B Class C
Shares Shares Shares Shares Shares Shares Shares Shares Shares
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year
. Redemption............ $ 66 $ 71 $ 30 $ 67 $ 71 $ 30 $ 69 $ 73 $ 32
. No Redemption......... $ 66 $ 20 $ 20 $ 67 $ 20 $ 20 $ 69 $ 22 $ 22
3 Years
. Redemption............ $ 90 $ 93 $ 60 $ 91 $ 94 $ 61 $ 97 $100 $ 67
. No Redemption......... $ 90 $ 60 $ 60 $ 91 $ 61 $ 61 $ 97 $ 67 $ 67
5 Years
. Redemption............ $116 $127 $104 $117 $128 $105 -- -- --
. No Redemption......... $116 $104 $104 $117 $105 $105 -- -- --
10 Years*
. Redemption............ $190 $188 $225 $192 $190 $227 -- -- --
. No Redemption......... $190 $188 $225 $192 $190 $227 -- -- --
<CAPTION>
International Equity Multi-Season Growth
Fund Micro-Cap Equity Fund Fund
----------------------- ----------------------- -----------------------
Class A Class B Class C Class A Class B Class C Class A Class B Class C
Shares Shares Shares Shares Shares Shares Shares Shares Shares
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year
. Redemption............ $ 67 $ 72 $ 30 $ 70 $ 75 $ 33 $ 67 $ 71 $ 30
. No Redemption......... $ 67 $ 20 $ 20 $ 70 $ 23 $ 23 $ 67 $ 20 $ 20
3 Years
. Redemption............ $ 93 $ 96 $ 63 $101 $104 $ 71 $ 91 $ 95 $ 62
. No Redemption......... $ 93 $ 63 $ 63 $101 $ 71 $ 71 $ 91 $ 62 $ 62
5 Years
. Redemption............ $120 $131 $108 $134 $145 $122 $118 $129 $106
. No Redemption......... $120 $108 $108 $134 $122 $122 $118 $106 $106
10 Years*
. Redemption............ $198 $196 $234 $228 $226 $262 $194 $192 $229
. No Redemption......... $198 $196 $234 $228 $226 $262 $194 $192 $229
<CAPTION>
Real Estate Equity
NetNet Fund Investment Fund Small-Cap Value Fund
----------------------- ----------------------- -----------------------
Class A Class B Class C Class A Class B Class C Class A Class B Class C
Shares Shares Shares Shares Shares Shares Shares Shares Shares
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year
. Redemption............ $ 70 $ 75 $ 34 $ 67 $ 72 $ 31 $ 67 $ 72 $ 31
. No Redemption......... $ 70 $ 24 $ 24 $ 67 $ 21 $ 21 $ 67 $ 21 $ 21
3 Years
. Redemption............ $102 $105 $ 72 $ 93 $ 97 $ 64 $ 93 $ 96 $ 63
. No Redemption......... $102 $ 72 $ 72 $ 93 $ 64 $ 64 $ 93 $ 63 $ 63
5 Years
. Redemption............ $136 $147 $124 $122 $133 $110 $121 $132 $109
. No Redemption......... $136 $124 $124 $122 $110 $110 $121 $109 $109
10 Years*
. Redemption............ $231 $229 $266 $202 $200 $237 $201 $198 $236
. No Redemption......... $231 $229 $266 $202 $200 $237 $201 $198 $236
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Small Company Framlington Emerging
Growth Fund Value Fund Markets Fund
----------------------- ----------------------- -----------------------
Class A Class B Class C Class A Class B Class C Class A Class B Class C
Shares Shares Shares Shares Shares Shares Shares Shares Shares
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year
. Redemption............ $ 67 $ 71 $ 30 $ 67 $ 72 $ 31 $ 73 $ 77 $ 36
. No Redemption......... $ 67 $ 20 $ 20 $ 67 $ 21 $ 21 $ 73 $ 26 $ 26
3 Years
. Redemption............ $ 91 $ 94 $ 61 $ 92 $ 95 $ 63 $109 $112 $ 80
. No Redemption......... $ 91 $ 61 $ 61 $ 92 $ 63 $ 63 $109 $ 80 $ 80
5 Years
. Redemption............ $118 $129 $105 $120 $129 $107 $148 $160 $137
. No Redemption......... $118 $105 $105 $120 $107 $107 $148 $137 $137
10 Years*
. Redemption............ $193 $191 $228 $197 $195 $232 $258 $256 $292
. No Redemption......... $193 $191 $228 $197 $195 $232 $258 $256 $292
</TABLE>
<TABLE>
<CAPTION>
Framlington
Framlington Global Framlington International Growth
Financial Services Fund Healthcare Fund Fund
----------------------- ----------------------- -----------------------
Class A Class B Class C Class A Class B Class C Class A Class B Class C
Shares Shares Shares Shares Shares Shares Shares Shares Shares
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year
. Redemption............ $69 $ 73 $32 $ 70 $ 75 $ 34 $ 70 $ 75 $ 34
. No Redemption......... $69 $ 22 $22 $ 70 $ 24 $ 24 $ 70 $ 24 $ 24
3 Years
. Redemption............ $98 $101 $68 $102 $105 $ 73 $102 $105 $ 73
. No Redemption......... $98 $ 68 $68 $102 $ 73 $ 73 $102 $ 73 $ 73
5 Years
. Redemption............ -- -- -- $137 $148 $125 $137 $148 $125
. No Redemption......... -- -- -- $137 $125 $125 $137 $125 $125
10 Years*
. Redemption............ -- -- -- $233 $231 $268 $233 $231 $268
. No Redemption ........ -- -- -- $233 $231 $268 $233 $231 $268
</TABLE>
- -------
*Reflects conversion of Class B Shares to Class A Shares (which pay lower
ongoing expenses) six years after purchase. Class B Shares of the Munder
Funds purchased on or before June 27, 1995 are subject to a different CDSC
schedule. See "REDEMPTIONS OF SHARES- What Price Do I Receive for Redeemed
Shares?"
CDSC WAIVERS
The "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed Shares?--
CDSC Waivers" section in the prospectus is deleted in its entirety and
replaced with the following:
CDSC Waivers. We will waive the CDSC payable upon redemptions of shares
which you purchased after June 27, 1995 for:
. redemptions made within one year after the death of a shareholder or
registered joint owner
. minimum required distributions made from an IRA or other individual
retirement plan account after you reach age 70 1/2
. involuntary redemptions made by the Fund
. redemptions limited to 10% per year of the account's NAV. For example,
if you maintain an annual balance of $10,000 you can redeem up to $1,000
annually free of charge.
We will waive the CDSC payable upon redemptions of shares which you
purchased after December 1, 1998 for:
. redemptions made from an IRA or other individual retirement plan account
established through Comerica Securities, Inc. after you reach age 59 and
after the eighteen month anniversary of the purchase of Fund shares.
<PAGE>
Consult the SAI for Class B Share CDSC waivers which apply when you redeem
shares acquired in an exchange of shares of another Fund of the Company or the
Trust that were purchased on or before June 27, 1995.
We will waive the CDSC for Class B Shares for all redemptions by Merrill
Lynch Plans if: (i) the Plan is recordkept on a daily valuation basis by
Merrill Lynch; or (ii) the Plan is recordkept on a daily valuation basis by an
independent recordkeeper whose services are provided through a contract or
alliance arrangement with Merrill Lynch; or (iii) the Plan has less than 500
eligible employees, as determined by the Merrill Lynch plan conversion
manager, on the date the Plan Sponsor signs the Merrill Lynch Recordkeeping
Service Agreement.
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated August 10, 1999
to Prospectus Dated October 27, 1998
Class K Shares of:
Munder Balanced Fund, Munder Growth & Income Fund, Munder Growth Opportunities
Fund, Munder Index 500 Fund, Munder International Equity Fund, Munder Micro-
Cap Equity Fund, Munder Multi-Season Growth Fund, Munder Real Estate Equity
Investment Fund, Munder Small-Cap Value Fund, Munder Small Company Growth
Fund, Munder Value Fund, Munder Framlington Emerging Markets Fund, Munder
Framlington Global Financial Services Fund, Munder Framlington Healthcare
Fund, Munder Framlington International Growth Fund, Munder Bond Fund, Munder
Intermediate Bond Fund, Munder International Bond Fund, Munder U.S. Government
Income Fund, Munder Michigan Tax-Free Bond Fund, Munder Tax-Free Bond Fund,
Munder Tax-Free Intermediate Bond Fund, Munder Cash Investment Fund, Munder
Tax-Free Money Market Fund and Munder U.S. Treasury Money Market Fund
CHANGE OF INVESTMENT OBJECTIVE AND POLICIES FOR MICRO-CAP EQUITY FUND
The Board of Directors of The Munder Funds, Inc. has changed the investment
objective of the Micro-Cap Equity Fund from long term capital appreciation to
capital appreciation and approved certain changes to the Fund's investment
policies, as set forth below. The description of the Micro-Cap Equity Fund in
the prospectus is hereby deleted in its entirety and replaced with the
following:
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide capital
appreciation. It invests primarily in Equity Securities of small
capitalization companies. The Fund attempts to provide investors with
potentially higher returns than a fund that invests primarily in larger, more
established companies. Since smaller capitalization companies are generally
not as well known to investors and have less of an investor following than
larger companies, they may provide higher returns due to inefficiencies in the
marketplace.
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities of companies having a market capitalization
within the market capitalization range of companies included in the
Wilshire Micro-Cap Index. As of the date of this Supplement, such
capitalizations do not exceed approximately $300 million, which is
considerably less than the market capitalization of S&P 500 companies.
The Advisor will choose companies that:
. present the ability to grow significantly
. may benefit from changes in technology, regulations and industry sector
trends
. are still in the developmental stage and may have limited product lines.
There is no limit on the length of operating history for the companies in
which the Fund may invest. The Fund may invest without limit in initial public
offerings of small capitalization companies.
PORTFOLIO MANAGEMENT. A committee of professional portfolio managers
employed by the Advisor makes investment decisions for the Fund.
CHANGE OF INVESTMENT POLICY FOR SMALL-CAP VALUE FUND
The Board of Directors of The Munder Funds, Inc. has changed the investment
policy of the Small-Cap Value Fund to increase the market capitalization of
the issuers considered to be small-cap companies. Accordingly, the second
paragraph of the description of the Small-Cap Value Fund in the prospectus is
hereby deleted and replaced with the following:
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities of companies with market capitalizations
within the market capitalization range of companies included in the
Russell 2000 Index. As of the date of this Supplement, such
capitalizations do not exceed approximately $1.5 billion, which is less
than the market capitalization of S&P 500 companies.
<PAGE>
WHAT ARE THE RISKS OF INVESTING IN THE FUNDS?
The Boards of Directors/Trustees of The Munder Funds have approved the
following addition to the above-referenced provision of the prospectus:
The Equity Funds may from time to time engage in short-term trading in
Equity Securities, including initial public offerings. Such short-term trading
may result in increased transaction costs and expenses and the realization of
short-term capital gains and losses.
REVISED FUND EXPENSES FOR INDEX 500 FUND
Effective August 16, 1999, Munder Capital Management terminated the
voluntary investment advisory fee waiver with respect to the Index 500 Fund.
Accordingly, the information with respect to the Index 500 Fund in the
sections of the Prospectus captioned "Fund Operating Expenses" and "Example"
are hereby deleted and replaced with the following:
The purpose of this table is to assist you in understanding the expenses
charged directly to the Fund, which investors in the Fund will bear indirectly
for the current fiscal year. Such expenses include payments to Trustees,
auditors, legal counsel and service providers (such as the Advisor) and
registration fees. The expenses shown below are based on expenses for the
Fund's past fiscal year.
<TABLE>
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(as a % of average net assets)
------------------------------
<S> <C>
Advisory Fees........................................................ .12%
Shareholder Servicing Fees........................................... .25%
Other Expenses....................................................... .23%
----
Total Fund Operating Expenses........................................ .60%
====
</TABLE>
This example shows the amount of expenses you would pay (directly or
indirectly) on a $1,000 investment in the Fund assuming (1) a 5% annual return
and (2) redemption at the end of the time periods. This example is not a
representation of past or future performance or operating expenses; actual
performance or operating expenses may be larger or smaller than those shown.
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
Index 500 Fund............................ $ 6 $19 $34 $75
</TABLE>
CHANGE OF INVESTMENT ADVISOR FOR INTERNATIONAL EQUITY FUND AND INDEX 500 FUND
Effective August 3, 1999, the Boards of Directors/Trustees of The Munder
Funds, Inc. and The Munder Funds Trust has approved World Asset Management,
Inc. ("WAM") as investment advisor to the International Equity Fund and the
Index 500 Fund.
WAM, with its principal offices at 225 East Brown Street, Birmingham,
Michigan 48009-6208, is a wholly-owned subsidiary of Munder Capital
Management. As of June 30, 1999, WAM had approximately $20.4 billion in assets
under management, of which $15.96 billion were invested in domestic equity
securities, $3.9 billion were invested in international equity securities and
$0.5 billion were invested in other fixed income securities.
WAM is entitled to receive an annual fee equal to .20% of the first $250
million of the Index 500 Fund's average daily net assets, .12% of the next
$250 million of the Fund's average daily net assets and .07% of the Fund's
average daily net assets over $500 million and 0.75% of the International
Equity Fund's average daily net assets.
ADDITION OF CO-MANAGER FOR GROWTH & INCOME FUND
Geoffrey A. Wilson has been appointed co-manager of the Growth & Income
Fund. Mr. Wilson is a Senior Portfolio Manager of the Advisor and has managed
individual, foundation and endowment portfolios in the Advisor's Private
Management Group since 1985.
<PAGE>
ADDITION OF CO-MANAGER FOR MULTI-SEASON GROWTH FUND
John P. Richardson has been appointed co-manager of the Multi-Season Growth
Fund. Mr. Richardson, Senior Partner & Director of Equity Portfolio
Management, has managed equity and balanced portfolios since joining the
Advisor in 1985.
PORTFOLIO MANAGEMENT OF SMALL-CAP VALUE FUND
Edward Eberle and Brian Wall jointly manage the Fund. Mr. Eberle, who has
managed the Fund since March 1997, was formerly the primary analyst for the
Fund. Prior to joining the Advisor in 1995, he was an Executive Vice President
and Portfolio Manager for Westpointe Financial Corporation. Mr. Wall, who has
managed the Fund since January 1998, was formerly a primary analyst for the
Fund. Prior to joining the Advisor in 1995, he was a Senior Equity Analyst
with Woodbridge Capital Management, Inc. (1994-1995).
ADDITION OF CO-MANAGER FOR TAX-FREE BOND FUND
Roger A. Soderstrom has been appointed co-manager of the Tax-Free Bond
Fund. Mr. Soderstrom has been a Senior Portfolio Manager with the Advisor
since 1997. Prior to joining the Advisor in 1997, Mr. Soderstrom managed the
core fixed income portfolio at Foremost Corporation of America (1987-1997).
PORTFOLIO MANAGEMENT OF VALUE FUND
Gerald Seizert and John S. Adams jointly manage the Fund. Mr. Seizert, a
Chief Investment Officer-Equities of the Advisor, has managed the Fund since
it commenced operations. Prior to joining the Advisor in 1995, Mr. Seizert was
a Director and Managing Partner of Loomis, Sayles & Company, L.P. Mr. Adams is
a Senior Portfolio Manager of the Advisor and has managed the Fund since
August 1999. Mr. Adams has managed institutional equity and balanced
portfolios for the advisor since 1987.
CHANGE OF NAME AND INVESTMENT POLICIES FOR TAX-FREE INTERMEDIATE BOND FUND
The Board of Trustees of The Munder Funds Trust has changed the name of the
Tax-Free Intermediate Bond Fund to the Tax-Free Short-Intermediate Bond Fund,
and approved certain changes to the Fund's investment policies, as set forth
below. The section of the prospectus entitled "Goal and Principal Investments"
for the Tax-Free Intermediate Bond Fund is deleted in its entirety and
replaced with the following:
TAX-FREE SHORT-INTERMEDIATE BOND FUND
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide a competitive
level of current interest income exempt from regular Federal income taxes and
a total return which, over time, exceeds the rate of inflation and the return
provided by tax-free money market instruments.
. Under normal market conditions, at least 65% of the Fund's assets will be
invested in Municipal Obligations.
. Except during temporary defensive periods, at least 80% of the Fund's net
assets will be invested in Municipal Obligations whose interest is exempt
from regular Federal income tax.
. The Fund invests in Michigan Municipal Obligations from time to time.
. The Fund generally buys obligations with remaining maturities of five
years or less.
. The Fund's dollar-weighted average maturity will generally be between two
and five years.
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated August 10, 1999
to Prospectus Dated October 27, 1998
Class Y Shares of:
Munder Balanced Fund, Munder Growth & Income Fund, Munder Growth Opportunities
Fund, Munder International Equity Fund, Munder Micro-Cap Equity Fund, Munder
Multi-Season Growth Fund, Munder NetNet Fund, Munder Real Estate Equity
Investment Fund, Munder Small-Cap Value Fund, Munder Small Company Growth
Fund, Munder Value Fund, Munder Framlington Emerging Markets Fund, Munder
Framlington Global Financial Services Fund, Munder Framlington Healthcare
Fund, Munder Framlington International Growth Fund, Munder Bond Fund, Munder
Intermediate Bond Fund, Munder International Bond Fund, Munder U.S. Government
Income Fund, Munder Michigan Tax-Free Bond Fund, Munder Tax-Free Bond Fund,
Munder Tax-Free Intermediate Bond Fund, Munder Short Term Treasury Fund,
Munder Cash Investment Fund, Munder Money Market Fund, Munder Tax-Free Money
Market Fund and Munder U.S. Treasury Money Market Fund
CHANGE OF INVESTMENT OBJECTIVE AND POLICIES FOR MICRO-CAP EQUITY FUND
The Board of Directors of The Munder Funds, Inc. has changed the investment
objective of the Munder Micro-Cap Equity Fund from long term capital
appreciation to capital appreciation and approved certain changes to the
Fund's investment policies, as set forth below. The description of the Munder
Micro-Cap Equity Fund in the prospectus is hereby deleted in its entirety and
replaced with the following:
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide capital
appreciation. It invests primarily in Equity Securities of small
capitalization companies. The Fund attempts to provide investors with
potentially higher returns than a fund that invests primarily in larger, more
established companies. Since smaller capitalization companies are generally
not as well known to investors and have less of an investor following than
larger companies, they may provide higher returns due to inefficiencies in the
marketplace.
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities of companies having a market capitalization
within the market capitalization range of companies included in the
Wilshire Micro-Cap Index. As of the date of this Supplement, such
capitalizations do not exceed approximately $300 million, which is
considerably less than the market capitalization of S&P 500 companies.
The Advisor will choose companies that:
. present the ability to grow significantly
. may benefit from changes in technology, regulations and industry sector
trends
. are still in the developmental stage and may have limited product lines.
There is no limit on the length of operating history for the companies in
which the Fund may invest. The Fund may invest without limit in initial public
offerings of small capitalization companies.
PORTFOLIO MANAGEMENT. A committee of professional portfolio managers
employed by the Advisor makes investment decisions for the Fund.
CHANGE OF INVESTMENT POLICY FOR SMALL-CAP VALUE FUND
The Board of Directors of The Munder Funds, Inc. has changed the investment
policy of the Munder Small-Cap Value Fund to increase the market
capitalization of the issuers considered to be small-cap companies.
Accordingly, the second paragraph of the description of the Munder Small-Cap
Value Fund in the prospectus is hereby deleted and replaced with the
following:
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities of companies with market capitalizations
within the market capitalization range of companies included in the
Russell 2000 Index. As of the date of this Supplement, such
capitalizations do not exceed approximately $1.5 billion, which is less
than the market capitalization of S&P 500 companies.
<PAGE>
WHAT ARE THE RISKS OF INVESTING IN THE FUNDS?
The Boards of Directors/Trustees of The Munder Funds have approved the
following addition to the above-referenced provision of the prospectus:
The Equity Funds may from time to time engage in short-term trading in
Equity Securities, including initial public offerings. Such short-term trading
may result in increased transaction costs and expenses and the realization of
short-term capital gains and losses.
CHANGE OF INVESTMENT ADVISOR FOR INTERNATIONAL EQUITY FUND
Effective August 3, 1999, the Board of Directors of The Munder Funds, Inc.
has approved World Asset Management, Inc. ("WAM") as investment advisor to the
Fund.
WAM, with its principal offices at 255 East Brown Street, Birmingham,
Michigan 48009-6208, is a wholly-owned subsidiary of Munder Capital
Management. As of June 30, 1999, WAM had approximately $20.4 billion in assets
under management, of which $15.96 billion were invested in domestic equity
securities, $3.9 billion were invested in international equity securities and
$0.5 billion were invested in other fixed income securities.
WAM is entitled to receive an annual fee equal to 0.75% of the
International Equity Fund's average daily net assets.
ADDITION OF CO-MANAGER FOR GROWTH & INCOME FUND
Geoffrey A. Wilson has been appointed co-manager of the Growth & Income
Fund. Mr. Wilson is a Senior Portfolio Manager of the Advisor and has managed
individual, foundation and endowment portfolios in the Advisor's Private
Management Group since 1985.
ADDITION OF CO-MANAGER FOR MULTI-SEASON GROWTH FUND
John P. Richardson has been appointed co-manager of the Multi-Season Growth
Fund. Mr. Richardson, Senior Partner & Director of Equity Portfolio
Management, has managed equity and balanced portfolios since joining the
Advisor in 1985.
PORTFOLIO MANAGEMENT OF SMALL-CAP VALUE FUND
Edward Eberle and Brian Wall jointly manage the Fund. Mr. Eberle, who has
managed the Fund since March 1997, was formerly the primary analyst for the
Fund. Prior to joining the Advisor in 1995, he was an Executive Vice President
and Portfolio Manager for Westpointe Financial Corporation. Mr. Wall, who has
managed the Fund since January 1998, was formerly a primary analyst for the
Fund. Prior to joining the Advisor in 1995, he was a Senior Equity Analyst
with Woodbridge Capital Management, Inc. (1994-1995).
ADDITION OF CO-MANAGER FOR TAX-FREE BOND FUND
Roger A. Soderstrom has been appointed co-manager of the Tax-Free Bond
Fund. Mr. Soderstrom has been a Senior Portfolio Manager with the Advisor
since 1997. Prior to joining the Advisor in 1997, Mr. Soderstrom managed the
core fixed income portfolio at Foremost Corporation of America (1987-1997).
PORTFOLIO MANAGEMENT OF VALUE FUND
Gerald Seizert and John S. Adams jointly manage the Fund. Mr. Seizert, a
Chief Investment Officer-Equities of the Advisor, has managed the Fund since
it commenced operations. Prior to joining the Advisor in 1995, Mr. Seizert was
a Director and Managing Partner of Loomis, Sayles & Company, L.P. Mr. Adams is
a Senior Portfolio Manager of the Advisor and has managed the Fund since
August 1999. Mr. Adams has managed institutional equity and balanced
portfolios for the advisor since 1987.
<PAGE>
CHANGE OF NAME AND INVESTMENT POLICIES FOR TAX-FREE INTERMEDIATE BOND FUND
The Board of Trustees of The Munder Funds Trust has changed the name of the
Tax-Free Intermediate Bond Fund to the Tax-Free Short-Intermediate Bond Fund,
and approved certain changes to the Fund's investment policies, as set forth
below. The section of the prospectus entitled "Goal and Principal Investments"
for the Tax-Free Intermediate Bond Fund is deleted in its entirety and
replaced with the following:
TAX-FREE SHORT-INTERMEDIATE BOND FUND
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide a competitive
level of current interest income exempt from regular Federal income taxes and
a total return which, over time, exceeds the rate of inflation and the return
provided by tax-free money market instruments.
. Under normal market conditions, at least 65% of the Fund's assets will be
invested in Municipal Obligations.
. Except during temporary defensive periods, at least 80% of the Fund's net
assets will be invested in Municipal Obligations whose interest is exempt
from regular Federal income tax.
. The Fund invests in Michigan Municipal Obligations from time to time.
. The Fund generally buys obligations with remaining maturities of five
years or less.
. The Fund's dollar-weighted average maturity will generally be between two
and five years.
CHANGE OF ADDRESS
Please send your Account Application by mail to: The Munder Funds, c/o
First Data Investor Services Group, P.O. Box 60428, King of Prussia,
Pennsylvania 19406-0428.
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated August 10, 1999
to Prospectus Dated October 27, 1998
Class A, B and C Shares of:
Munder Bond Fund, Munder Intermediate Bond Fund, Munder International Bond
Fund,
Munder U.S. Government Income Fund, Munder Michigan Tax-Free Bond Fund, Munder
Tax-Free Bond Fund
and Munder Tax-Free Intermediate Bond Fund
RESTRICTIONS ON EXCESSIVE PURCHASE AND EXCHANGE TRANSACTIONS
The Funds have determined to institute the following amendment to their
policies concerning purchase and exchange transactions in order to limit
excessive trading in shares of the Funds:
The exchange privilege is not intended as a vehicle for short-term trading.
Excessive exchange activity may interfere with portfolio management and have
an adverse effect on all shareholders. Each Fund and its distributor reserve
the right to refuse any purchase or exchange request that could adversely
affect the fund or its operations, including those from any individual or
group who, in the Fund's view, is likely to engage in excessive trading or any
order considered market-timing activity. If a Fund refuses a purchase or
exchange request and the shareholder deems it necessary to redeem their
account, any CDSC as permitted by the prospectus will be applicable.
Additionally, in no event will any Fund permit more than six exchanges into
or out of a Fund in any one-year period per account, tax identification
number, social security number or related investment group. The Munder Money
Market Funds are exempt from this policy. Please see "How Can I Exchange
Shares?" in the prospectus for additional information concerning exchanges.
ADDITION OF CO-MANAGER FOR TAX-FREE BOND FUND
Roger A. Soderstrom has been appointed co-manager of the Tax-Free Bond
Fund. Mr. Soderstrom has been a Senior Portfolio Manager with the Advisor
since 1997. Prior to joining the Advisor in 1997, Mr. Soderstrom managed the
core fixed income portfolio at Foremost Corporation of America (1987-1997).
CHANGE OF NAME AND INVESTMENT POLICIES FOR TAX-FREE INTERMEDIATE BOND FUND
The Board of Trustees of The Munder Funds Trust has changed the name of the
Tax-Free Intermediate Bond Fund to the Tax-Free Short-Intermediate Bond Fund,
and approved certain changes to the Fund's investment policies, as set forth
below. The section of the prospectus entitled "Goal and Principal Investments"
for the Tax-Free Intermediate Bond Fund is deleted in its entirety and
replaced with the following:
TAX-FREE SHORT-INTERMEDIATE BOND FUND
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide a competitive
level of current interest income exempt from regular Federal income taxes and
a total return which, over time, exceeds the rate of inflation and the return
provided by tax-free money market instruments.
. Under normal market conditions, at least 65% of the Fund's assets will be
invested in Municipal Obligations.
. Except during temporary defensive periods, at least 80% of the Fund's net
assets will be invested in Municipal Obligations whose interest is exempt
from regular Federal income tax.
. The Fund invests in Michigan Municipal Obligations from time to time.
. The Fund generally buys obligations with remaining maturities of five
years or less.
. The Fund's dollar-weighted average maturity will generally be between two
and five years.
CHANGE OF ADDRESS
Please send your Account Application, exchange order or redemption request
by mail to: The Munder Funds, c/o First Data Investor Services Group, P.O. Box
60428, King of Prussia, Pennsylvania 19406-0428.
<PAGE>
EXAMPLE
The "EXAMPLE" section in the prospectus is hereby deleted in its entirety
and replaced with the following:
This example shows the amount of expenses you would pay (directly or
indirectly) on a $1,000 investment in the Fund assuming (1) a 5% annual
return, (2) redemption at the end of the time period (including the deduction
of the deferred sales charge, if any) and (3) no redemption at the end of the
time period. This example is not a representation of past or future
performance or operating expenses; actual performance or operating expenses
may be larger or smaller than those shown.
<TABLE>
<CAPTION>
International
Bond Fund Intermediate Bond Fund Bond Fund
----------------------- ----------------------- -----------------------
Class A Class B Class C Class A Class B Class C Class A Class B Class C
Shares Shares Shares Shares Shares Shares Shares Shares Shares
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year
.Redemption............. $ 49 $ 69 $ 28 $ 49 $ 69 $ 27 $ 51 $ 71 $ 29
.No Redemption.......... $ 49 $ 18 $ 18 $ 49 $ 17 $ 17 $ 51 $ 19 $ 19
3 Years
.Redemption............. $ 69 $ 87 $ 54 $ 69 $ 86 $ 53 $ 74 $ 92 $ 59
.No Redemption.......... $ 69 $ 54 $ 54 $ 69 $ 53 $ 53 $ 74 $ 59 $ 59
5 Years
.Redemption............. $ 91 $117 $ 93 $ 90 $115 $ 91 $ 99 $124 $101
.No Redemption.......... $ 91 $ 93 $ 93 $ 90 $ 91 $ 91 $ 99 $101 $101
10 Years*
.Redemption............. $154 $164 $203 $150 $161 $199 $170 $181 $219
.No Redemption.......... $154 $164 $203 $150 $161 $199 $170 $181 $219
<CAPTION>
U.S. Government Michigan Tax-Free
Income Fund Tax-Free Bond Fund Bond Fund
----------------------- ----------------------- -----------------------
Class A Class B Class C Class A Class B Class C Class A Class B Class C
Shares Shares Shares Shares Shares Shares Shares Shares Shares
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year
.Redemption............. $ 49 $ 69 $ 28 $ 50 $ 69 $ 28 $ 49 $ 69 $ 27
.No Redemption.......... $ 49 $ 18 $ 18 $ 50 $ 18 $ 18 $ 49 $ 17 $ 17
3 Years
.Redemption............. $ 69 $ 86 $ 53 $ 70 $ 88 $ 55 $ 69 $ 86 $ 53
.No Redemption.......... $ 69 $ 53 $ 53 $ 70 $ 55 $ 55 $ 69 $ 53 $ 53
5 Years
.Redemption............. $ 90 $116 $ 92 $ 92 $118 $ 94 $ 90 $115 $ 91
.No Redemption.......... $ 90 $ 92 $ 92 $ 92 $ 94 $ 94 $ 90 $ 91 $ 91
10 Years*
.Redemption............. $151 $162 $200 $156 $166 $205 $150 $161 $199
.No Redemption.......... $151 $162 $200 $156 $166 $205 $150 $161 $199
<CAPTION>
Tax-Free Short-
Intermediate Bond Fund
-----------------------
Class A Class B Class C
Shares Shares Shares
------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 Year
.Redemption............. $ 49 $ 69 $ 28
.No Redemption.......... $ 49 $ 18 $ 18
3 Years
.Redemption............. $ 69 $ 86 $ 53
.No Redemption.......... $ 69 $ 53 $ 53
5 Years
.Redemption............. $ 90 $116 $ 92
.No Redemption.......... $ 90 $ 92 $ 92
10 Years*
.Redemption............. $151 $162 $200
.No Redemption.......... $151 $162 $200
</TABLE>
- -------
* Reflects conversion of Class B Shares to Class A Shares (which pay lower
ongoing expenses) six years after purchase. Class B Shares of the Munder
Funds purchased on or before June 27, 1995 are subject to a different CDSC
schedule. See "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed
Shares?"
<PAGE>
CDSC WAIVERS
The "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed Shares?--
CDSC Waivers" section in the prospectus is deleted in its entirety and
replaced with the following:
CDSC Waivers. We will waive the CDSC payable upon redemptions of shares
which you purchased after June 27, 1995 for:
. redemptions made within one year after the death of a shareholder or
registered joint owner
. minimum required distributions made from an IRA or other individual
retirement plan account after you reach age 70 1/2
. involuntary redemptions made by the Fund
. redemptions limited to 10% per year of the account's NAV. For example, if
you maintain an annual balance of $10,000 you can redeem up to $1,000
annually free of charge.
We will waive the CDSC payable upon redemptions of shares which you
purchased after December 1, 1998 for:
. redemptions made from an IRA or other individual retirement plan account
established through Comerica Securities, Inc. after you reach age 59 and
after the eighteen month anniversary of the purchase of Fund shares.
Consult the SAI for Class B Share CDSC waivers which apply when you redeem
shares purchased on or before June 27, 1995.
We will waive the CDSC for Class B Shares for all redemptions by Merrill
Lynch Plans if: (i) the Plan is record kept on a daily valuation basis by
Merrill Lynch; or (ii) the Plan is record kept on a daily valuation basis by
an independent record keeper whose services are provided through a contract or
alliance arrangement with Merrill Lynch; or (iii) the Plan has less than 500
eligible employees, as determined by the Merrill Lynch plan conversion
manager, on the date the Plan Sponsor signs the Merrill Lynch Record keeping
Service Agreement.
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated August 10, 1999
to Prospectus Dated October 27, 1998
Class A and B Shares of:
Munder All-Season Conservative Fund, Munder All-Season Moderate Fund and
Munder All-Season Aggressive Fund
CHANGE OF INVESTMENT OBJECTIVE AND POLICIES FOR MICRO-CAP EQUITY FUND
The Board of Directors of The Munder Funds, Inc. has changed the investment
objective of the Micro-Cap Equity Fund from long term capital appreciation to
capital appreciation and approved certain changes to the Fund's investment
policies, as set forth below. The description of the Micro-Cap Equity Fund in
the prospectus is hereby deleted in its entirety and replaced with the
following:
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide capital
appreciation. It invests primarily in Equity Securities of small
capitalization companies. The Fund attempts to provide investors with
potentially higher returns than a fund that invests primarily in larger, more
established companies. Since smaller capitalization companies are generally
not as well known to investors and have less of an investor following than
larger companies, they may provide higher returns due to inefficiencies in the
marketplace.
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities of companies having a market capitalization
within the market capitalization range of companies included in the
Wilshire Micro-Cap Index. As of the date of this Supplement, such
capitalizations do not exceed approximately $300 million, which is
considerably less than the market capitalization of S&P 500 companies.
The Advisor will choose companies that:
. present the ability to grow significantly
. may benefit from changes in technology, regulations and industry sector
trends
. are still in the developmental stage and may have limited product lines.
There is no limit on the length of operating history for the companies in
which the Fund may invest. The Fund may invest without limit in initial public
offerings of small capitalization companies.
PORTFOLIO MANAGEMENT. A committee of professional portfolio managers
employed by the Advisor makes investment decisions for the Fund.
CHANGE OF INVESTMENT POLICY FOR SMALL-CAP VALUE FUND
The Board of Directors of The Munder Funds, Inc. has changed the investment
policy of the Small-Cap Value Fund to increase the market capitalization of
the issuers considered to be small-cap companies. Accordingly, the second
paragraph of the description of the Small-Cap Value Fund in the prospectus is
hereby deleted and replaced with the following:
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities of companies with market capitalizations
within the market capitalization range of companies included in the
Russell 2000 Index. As of the date of this Supplement, such
capitalizations do not exceed approximately $1.5 billion, which is less
than the market capitalization of S&P 500 companies.
WHAT ARE THE RISKS OF INVESTING IN THE FUNDS?
The Boards of Directors/Trustees of The Munder Funds have approved the
following addition to the above-referenced provision of the prospectus:
The Equity Funds may from time to time engage in short-term trading in
Equity Securities, including initial public offerings. Such short-term trading
may result in increased transaction costs and expenses and the realization of
short-term capital gains and losses.
<PAGE>
RESTRICTIONS ON EXCESSIVE PURCHASE AND EXCHANGE TRANSACTIONS
The Funds have determined to institute the following amendment to their
policies concerning purchase and exchange transactions in order to limit
excessive trading in shares of the Funds:
The exchange privilege is not intended as a vehicle for short-term trading.
Excessive exchange activity may interfere with portfolio management and have
an adverse effect on all shareholders. Each Fund and its distributor reserve
the right to refuse any purchase or exchange request that could adversely
affect the fund or its operations, including those from any individual or
group who, in the Fund's view, is likely to engage in excessive trading or any
order considered market-timing activity. If a Fund refuses a purchase or
exchange request and the shareholder deems it necessary to redeem their
account, any CDSC as permitted by the prospectus will be applicable.
Additionally, in no event will any Fund permit more than six exchanges into
or out of a Fund in any one-year period per account, tax identification
number, social security number or related investment group. The Munder Money
Market Funds are exempt from this policy. Please see "How Can I Exchange
Shares?" in the prospectus for additional information concerning exchanges.
REVISED FUND EXPENSES FOR THE INDEX 500 FUND
Effective August 16, 1999, Munder Capital Management terminated the
voluntary investment advisory fee waiver with respect to the Index 500 Fund.
Accordingly, the information in the section of the prospectus captioned "Fund
Operating Expenses" with respect to expenses incurred by the Underlying Funds
is hereby deleted and replaced with the following:
<TABLE>
<CAPTION>
Class Y
Shares
-------
<S> <C>
Equity Selection.................................................... 1.10%
Growth & Income Fund................................................ .94%
Growth Opportunities Fund........................................... 1.15%+
Index 500 Fund...................................................... .35%
International Equity Fund........................................... 1.00%
Micro-Cap Equity Fund............................................... 1.28%+
Multi-Season Growth Fund............................................ .96%*
NetNet Fund......................................................... 1.31%+
Real Estate Equity Investment Fund.................................. 1.03%
Small Company Growth Fund........................................... .95%
Small-Cap Value Fund................................................ 1.02%
Value Fund.......................................................... .99%
Framlington Emerging Markets Fund................................... 1.57%+
Framlington Global Financial Services Fund.......................... 1.15%+
Framlington Healthcare Fund......................................... 1.33%+
Framlington International Growth Fund............................... 1.33%+
Bond Fund........................................................... .71%
Intermediate Bond Fund.............................................. .68%
International Bond Fund............................................. .86%
U.S. Government Income Fund......................................... .69%
Cash Investment Fund................................................ .51%
Money Market Fund................................................... .64%
U.S. Treasury Money Market Fund..................................... .57%
</TABLE>
- -------
* Reflects advisory fees after waiver. Without waiver, the Expense Ratio
would have been 1.14% for the Multi-Season Growth Fund.
+ The Advisor voluntarily reimbursed the Fund for certain operating expenses.
In the absence of such expense reimbursement, the Expense Ratio would have
been as follows: 1.62% for the NetNet Fund, 1.53% for the Micro-Cap Equity
Fund, 1.89% for the Framlington Emerging Markets Fund, 1.32% for the
Framlington Global Financial Services Fund, 2.15% for the Framlington
Healthcare Fund, 1.57% for Framlington International Growth Fund and 1.16%
for the Growth Opportunities Fund.
<PAGE>
EXAMPLE
The "EXAMPLE" section in the Prospectus is hereby deleted in its entirety
and replaced with the following:
This example shows the amount of expenses you would pay (directly or
indirectly) on a $1,000 investment in the Fund assuming (1) a 5% annual return
and (2) redemption at the end of the time periods (including the deduction of
the deferred sales charge, if any). This example is not a representation of
past or future performance or operating expenses; actual performance or
operating expenses may be larger or smaller than those shown.
<TABLE>
<CAPTION>
Conservative
Fund Moderate Fund Aggressive Fund
--------------- --------------- ---------------
Class A Class B Class A Class B Class A Class B
Shares Shares Shares Shares Shares Shares
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
1 Year
.Redemption..................... $ 62 $ 66 $ 61 $ 65 $ 61 $ 65
.No Redemption.................. $ 62 $ 14 $ 61 $13 $ 61 $13
3 Years
.Redemption..................... $ 76 $ 77 $ 74 $ 76 $ 74 $ 76
.No Redemption.................. $ 76 $ 44 $ 74 $ 43 $ 74 $ 43
5 Years
.Redemption..................... $ 91 $100 $ 88 $ 97 $ 88 $ 97
.No Redemption.................. $ 91 $ 76 $ 88 $ 73 $ 88 $ 73
10 Years*
.Redemption..................... $135 $129 $130 $124 $130 $124
.No Redemption.................. $135 $129 $130 $124 $130 $124
</TABLE>
- -------
* Reflects conversion of Class B Shares to Class A Shares (which pay lower
ongoing expenses) six years after purchase. Class B Shares of the Munder
Funds purchased on or before June 27, 1995 are subject to a different CDSC
schedule. See "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed
Shares?"
Based on the expenses for the Funds and the Underlying Funds shown above,
and assuming the neutral asset allocation for each Fund set forth below, the
average weighted expense ratio for each Fund, expressed as a percentage of
each Fund's average daily net assets, is estimated to be as follows:
<TABLE>
<CAPTION>
Expense Ratio
---------------
Class A Class B
Shares Shares
------- -------
<S> <C> <C>
Conservative Fund............................................... 1.45% 2.15%
Moderate Fund................................................... 1.56% 2.26%
Aggressive Fund................................................. 1.67% 2.37%
</TABLE>
CHANGE OF INVESTMENT ADVISOR FOR INTERNATIONAL EQUITY FUND AND INDEX 500 FUND
Effective August 3, 1999, the Boards of Directors/Trustees of The Munder
Funds, Inc. and The Munder Funds Trust has approved World Asset Management,
Inc. ("WAM") as investment advisor to the International Equity Fund and the
Index 500 Fund.
WAM, with its principal offices at 255 East Brown Street, Birmingham,
Michigan 48009-6208, is a wholly-owned subsidiary of Munder Capital
Management. As of June 30, 1999, WAM had approximately $20.4 billion in assets
under management, of which $15.96 billion were invested in domestic equity
securities, $3.9 billion were invested in international equity securities and
$0.5 billion were invested in other fixed income securities.
WAM is entitled to receive an annual fee equal to .20% of the first $250
million of the Index 500 Fund's average daily net assets, .12% of the next
$250 million of the Fund's average daily net assets and .07% of the Fund's
average daily net assets over $500 million and 0.75% of the International
Equity Fund's average daily net assets.
<PAGE>
ADDITION OF CO-MANAGER FOR GROWTH & INCOME FUND
Geoffrey A. Wilson has been appointed co-manager of the Growth & Income
Fund. Mr. Wilson is a Senior Portfolio Manager of the Advisor and has managed
individual, foundation and endowment portfolios in the Advisor's Private
Management Group since 1985.
ADDITION OF CO-MANAGER FOR MULTI-SEASON GROWTH FUND
John P. Richardson has been appointed co-manager of the Multi-Season Growth
Fund. Mr. Richardson, Senior Partner & Director of Equity Portfolio
Management, has managed equity and balanced portfolios since joining the
Advisor in 1985.
PORTFOLIO MANAGEMENT OF SMALL-CAP VALUE FUND
Edward Eberle and Brian Wall jointly manage the Fund. Mr. Eberle, who has
managed the Fund since March 1997, was formerly the primary analyst for the
Fund. Prior to joining the Advisor in 1995, he was an Executive Vice President
and Portfolio Manager for Westpointe Financial Corporation. Mr. Wall, who has
managed the Fund since January 1998, was formerly a primary analyst for the
Fund. Prior to joining the Advisor in 1995, he was a Senior Equity Analyst
with Woodbridge Capital Management, Inc. (1994-1995).
PORTFOLIO MANAGEMENT OF VALUE FUND
Gerald Seizert and John S. Adams jointly manage the Fund. Mr. Seizert, a
Chief Investment Officer-Equities of the Advisor, has managed the Fund since
it commenced operations. Prior to joining the Advisor in 1995, Mr. Seizert was
a Director and Managing Partner of Loomis, Sayles & Company, L.P. Mr. Adams is
a Senior Portfolio Manager of the Advisor and has managed the Fund since
August 1999. Mr. Adams has managed institutional equity and balanced
portfolios for the advisor since 1987.
CHANGE OF ADDRESS
Please send your Account Application, exchange order or redemption request
by mail to: The Munder Funds, c/o First Data Investor Services Group, P.O. Box
60428, King of Prussia, Pennsylvania 19406-0428.
FUND CHOICES
The "Fund Choices--What are the Underlying Funds' Investments and
Investment Practices?--Goal and Principal Investments for Equity Selection
Fund" section in the Prospectus is deleted in its entirety and replaced with
the following:
EQUITY SELECTION FUND
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide long-term
capital appreciation.
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities. "Equity Securities" include common stocks,
preferred stocks, warrants and other securities convertible into common
stock, including convertible bonds and convertible preferred stock.
. The Advisor's dedicated research team invests the Fund's assets in Equity
Securities which it believes are undervalued compared to stocks of other
companies in the same industry.
. The Fund generally invests in issuers with market capitalizations of at
least $1 billion.
. The Fund diversifies its assets by industry in approximately the same
weightings as those of the Standard & Poor's 500 Composite Stock Price
Index ("S&P 500").
<PAGE>
CDSC WAIVERS
The "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed Shares?--
CDSC Waivers" section in the Prospectus is deleted in its entirety and
replaced with the following:
CDSC Waivers. We will waive the CDSC payable upon redemptions of shares
for:
. redemptions made within one year after the death of a shareholder or
registered joint owner
. minimum required distributions made from an IRA or other individual
retirement plan account after you reach age 70 1/2
. involuntary redemptions made by the Fund
. redemptions limited to 10% per year of the account's NAV. For example, if
you maintain an annual balance of $10,000 you can redeem up to $1,000
annually free of charge.
We will waive the CDSC payable upon redemptions of shares which you
purchased after December 1, 1998 for:
. redemptions made from an IRA or other individual retirement plan account
established through Comerica Securities, Inc. after you reach age 59 1/2
and after the eighteen month anniversary of the purchase of Fund shares.
We will waive the CDSC for all redemptions of Class B Shares by Merrill
Lynch Plans if: (i) the Plan is recordkept on a daily valuation basis by
Merrill Lynch; or (ii) the Plan is recordkept on a daily valuation basis by an
independent recordkeeper whose services are provided through a contract or
alliance arrangement with Merrill Lynch; or (iii) the Plan has less than 500
eligible employees, as determined by the Merrill Lynch plan conversion
manager, on the date the Plan Sponsor signs the Merrill Lynch Recordkeeping
Service Agreement.
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated August 10, 1999
to Prospectus Dated October 27, 1998
Class Y Shares of:
Munder All-Season Conservative Fund, Munder All-Season Moderate Fund and
Munder All-Season Aggressive Fund
CHANGE OF INVESTMENT OBJECTIVE AND POLICIES FOR MICRO-CAP EQUITY FUND
The Board of Directors of The Munder Funds, Inc. has changed the investment
objective of the Micro-Cap Equity Fund from long term capital appreciation to
capital appreciation and approved certain changes to the Fund's investment
policies, as set forth below. The description of the Micro-Cap Equity Fund in
the prospectus is hereby deleted in its entirety and replaced with the
following:
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide capital
appreciation. It invests primarily in Equity Securities of small
capitalization companies. The Fund attempts to provide investors with
potentially higher returns than a fund that invests primarily in larger, more
established companies. Since smaller capitalization companies are generally
not as well known to investors and have less of an investor following than
larger companies, they may provide higher returns due to inefficiencies in the
marketplace.
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities of companies having a market capitalization
within the market capitalization range of companies included in the
Wilshire Micro-Cap Index. As of the date of this Supplement, such
capitalizations do not exceed approximately $300 million, which is
considerably less than the market capitalization of S&P 500 companies.
The Advisor will choose companies that:
. present the ability to grow significantly
. may benefit from changes in technology, regulations and industry sector
trends
. are still in the developmental stage and may have limited product lines.
There is no limit on the length of operating history for the companies in
which the Fund may invest. The Fund may invest without limit in initial public
offerings of small capitalization companies.
PORTFOLIO MANAGEMENT. A committee of professional portfolio managers
employed by the Advisor makes investment decisions for the Fund.
CHANGE OF INVESTMENT POLICY FOR SMALL-CAP VALUE FUND
The Board of Directors of The Munder Funds, Inc. has changed the investment
policy of the Small-Cap Value Fund to increase the market capitalization of
the issuers considered to be small-cap companies. Accordingly, the second
paragraph of the description of the Small-Cap Value Fund in the prospectus is
hereby deleted and replaced with the following:
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities of companies with market capitalizations
within the market capitalization range of companies included in the
Russell 2000 Index. As of the date of this Supplement, such
capitalizations do not exceed approximately $1.5 billion, which is less
than the market capitalization of S&P 500 companies.
WHAT ARE THE RISKS OF INVESTING IN THE FUNDS?
The Boards of Directors/Trustees of The Munder Funds have approved the
following addition to the above-referenced provision of the prospectus:
The Equity Funds may from time to time engage in short-term trading in
Equity Securities, including initial public offerings. Such short-term trading
may result in increased transaction costs and expenses and the realization of
short-term capital gains and losses.
<PAGE>
REVISED FUND EXPENSES FOR THE INDEX 500 FUND
Effective August 16, 1999, Munder Capital Management terminated the
voluntary investment advisory fee waiver with respect to the Index 500 Fund.
Accordingly, the information in the section of the prospectus captioned "Fund
Operating Expenses" with respect to expenses incurred by the Underlying Funds
is hereby deleted and replaced with the following:
<TABLE>
<CAPTION>
Class Y
Shares
-------
<S> <C>
Equity Selection.................................................... 1.10%
Growth & Income Fund................................................ .94%
Growth Opportunities Fund........................................... 1.15%+
Index 500 Fund...................................................... .35%
International Equity Fund........................................... 1.00%
Micro-Cap Equity Fund............................................... 1.28%+
Multi-Season Growth Fund............................................ .96%*
NetNet Fund......................................................... 1.31%+
Real Estate Equity Investment Fund.................................. 1.03%
Small Company Growth Fund........................................... .95%
Small-Cap Value Fund................................................ 1.02%
Value Fund.......................................................... .99%
Framlington Emerging Markets Fund................................... 1.57%+
Framlington Global Financial Services Fund.......................... 1.15%+
Framlington Healthcare Fund......................................... 1.33%+
Framlington International Growth Fund............................... 1.33%+
Bond Fund........................................................... .71%
Intermediate Bond Fund.............................................. .68%
International Bond Fund............................................. .86%
U.S. Government Income Fund......................................... .69%
Cash Investment Fund................................................ .51%
Money Market Fund................................................... .64%
U.S. Treasury Money Market Fund..................................... .57%
</TABLE>
- -------
* Reflects advisory fees after waiver. Without waiver, the Expense Ratio
would have been 1.14% for the Multi-Season Growth Fund.
+ The Advisor voluntarily reimbursed the Fund for certain operating expenses.
In the absence of such expense reimbursement, the Expense Ratio would have
been as follows: 1.62% for the NetNet Fund, 1.53% for the Micro-Cap Equity
Fund, 1.89% for the Framlington Emerging Markets Fund, 1.32% for the
Framlington Global Financial Services Fund, 2.15% for the Framlington
Healthcare Fund, 1.57% for Framlington International Growth Fund and 1.16%
for the Growth Opportunities Fund.
EXAMPLE
The "EXAMPLE" section in the prospectus with respect to the Expense Ratio for
the Funds and the Underlying Funds is hereby deleted in its entirety and
replaced with the following:
Based on the expenses for the Funds and the Underlying Funds shown above,
and assuming the neutral asset allocation for each Fund set forth below, the
average weighted expense ratio for each Fund, expressed as a percentage of
each Fund's average daily net assets, is estimated to be as follows:
<TABLE>
<CAPTION>
Expense Ratio
-------------
<S> <C>
Conservative Fund................................................. 1.15%
Moderate Fund..................................................... 1.26%
Aggressive Fund................................................... 1.37%
</TABLE>
<PAGE>
CHANGE OF INVESTMENT ADVISOR FOR INTERNATIONAL EQUITY FUND AND INDEX 500 FUND
Effective August 3, 1999, the Boards of Directors/Trustees of The Munder
Funds, Inc. and The Munder Funds Trust has approved World Asset Management,
Inc. ("WAM") as investment advisor to the International Equity Fund and the
Index 500 Fund.
WAM, with its principal offices at 255 East Brown Street, Birmingham,
Michigan 48009-6208, is a wholly-owned subsidiary of Munder Capital
Management. As of June 30, 1999, WAM had approximately $20.4 billion in assets
under management, of which $15.96 billion were invested in domestic equity
securities, $3.9 billion were invested in international equity securities and
$0.5 billion were invested in other fixed income securities.
WAM is entitled to receive an annual fee equal to .20% of the first $250
million of the Index 500 Fund's average daily net assets, .12% of the next
$250 million of the Fund's average daily net assets and .07% of the Fund's
average daily net assets over $500 million and 0.75% of the International
Equity Fund's average daily net assets.
ADDITION OF CO-MANAGER FOR GROWTH & INCOME FUND
Geoffrey A. Wilson has been appointed co-manager of the Growth & Income
Fund. Mr. Wilson is a Senior Portfolio Manager of the Advisor and has managed
individual, foundation and endowment portfolios in the Advisor's Private
Management Group since 1985.
ADDITION OF CO-MANAGER FOR MULTI-SEASON GROWTH FUND
John P. Richardson has been appointed co-manager of the Multi-Season Growth
Fund. Mr. Richardson, Senior Partner & Director of Equity Portfolio
Management, has managed equity and balanced portfolios since joining the
Advisor in 1985.
PORTFOLIO MANAGEMENT OF SMALL-CAP VALUE FUND
Edward Eberle and Brian Wall jointly manage the Fund. Mr. Eberle, who has
managed the Fund since March 1997, was formerly the primary analyst for the
Fund. Prior to joining the Advisor in 1995, he was an Executive Vice President
and Portfolio Manager for Westpointe Financial Corporation. Mr. Wall, who has
managed the Fund since January 1998, was formerly a primary analyst for the
Fund. Prior to joining the Advisor in 1995, he was a Senior Equity Analyst
with Woodbridge Capital Management, Inc. (1994-1995).
PORTFOLIO MANAGEMENT OF VALUE FUND
Gerald Seizert and John S. Adams jointly manage the Fund. Mr. Seizert, a
Chief Investment Officer-Equities of the Advisor, has managed the Fund since
it commenced operations. Prior to joining the Advisor in 1995, Mr. Seizert was
a Director and Managing Partner of Loomis, Sayles & Company, L.P. Mr. Adams is
a Senior Portfolio Manager of the Advisor and has managed the Fund since
August 1999. Mr. Adams has managed institutional equity and balanced
portfolios for the advisor since 1987.
CHANGE OF ADDRESS
Please send your Account Application by mail to: The Munder Funds, c/o
First Data Investor Services Group, P.O. Box 60428, King of Prussia,
Pennsylvania 19406-0428.
FUND CHOICES
The "FUND CHOICES--What are the Underlying Funds' Investments and
Investment Practices? --Goal and Principal Investments for Equity Selection
Fund" section in the prospectus is deleted in its entirety and replaced with
the following:
EQUITY SELECTION FUND
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide long-term
capital appreciation.
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities. "Equity Securities" include common stocks,
preferred stocks, warrants and other securities convertible into common
stock, including convertible bonds and convertible preferred stock.
. The Advisor's dedicated research team invests the Fund's assets in Equity
Securities which it believes are undervalued compared to stocks of other
companies in the same industry.
. The Fund generally invests in issuers with market capitalizations of at
least $1 billion.
. The Fund diversifies its assets by industry in approximately the same
weightings as those of the Standard & Poor's 500 Composite Stock Price
Index ("S&P 500").
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated August 10, 1999
to Prospectus Dated October 27, 1998
Class A, B, C Shares of:
The Munder Equity Selection Fund
WHAT ARE THE RISKS OF INVESTING IN THE FUND?
The Boards of Directors of The Munder Funds, Inc. has approved the
following addition to the above-referenced provision of the prospectus:
The Fund may from time to time engage in short-term trading in Equity
Securities, including initial public offerings. Such short-term trading may
result in increased transaction costs and expenses and the realization of
short-term capital gains and losses.
RESTRICTIONS ON EXCESSIVE PURCHASE AND EXCHANGE TRANSACTIONS
The Fund has determined to institute the following amendment to its
policies concerning purchase and exchange transactions in order to limit
excessive trading in shares of the Fund:
The exchange privilege is not intended as a vehicle for short-term trading.
Excessive exchange activity may interfere with portfolio management and have
an adverse effect on all shareholders. Each Fund and its distributor reserve
the right to refuse any purchase or exchange request that could adversely
affect the fund or its operations, including those from any individual or
group who, in the Fund's view, is likely to engage in excessive trading or any
order considered market-timing activity. If the Fund refuses a purchase or
exchange request and the shareholder deems it necessary to redeem their
account, any CDSC as permitted by the prospectus will be applicable.
Additionally, in no event will the Fund permit more than six exchanges into
or out of a Fund in any one-year period per account, tax identification
number, social security number or related investment group. The Munder Money
Market Funds are exempt from this policy. Please see "How Can I Exchange
Shares?" in the prospectus for additional information concerning exchanges.
CHANGE OF ADDRESS
Please send your Account Application, exchange order or redemption request
by mail to: The Munder Funds, c/o First Data Investor Services Group, P.O. Box
60428, King of Prussia, Pennsylvania 19406-0428.
GOAL AND PRINCIPAL INVESTMENTS
The "FUND INFORMATION--Goal and Principal Investments" section in the
prospectus is deleted in its entirety and replaced with the following:
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide long-term
capital appreciation.
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities. "Equity Securities" include common stocks,
preferred stocks, warrants and other securities convertible into common
stock, including convertible bonds and convertible preferred stock.
. The Advisor's dedicated research team invests the Fund's assets in Equity
Securities which it believes are undervalued compared to stocks of other
companies in the same industry.
. The Fund generally invests in issuers with market capitalizations of at
least $1 billion.
. The Fund diversifies its assets by industry in approximately the same
weightings as those of the Standard & Poor's 500 Composite Stock Price
Index ("S&P 500").
<PAGE>
CDSC WAIVERS
The "REDEMPTIONS OF SHARES--What Price Do I Receive for Redeemed Shares?--
CDSC Waivers" section in the prospectus is deleted in its entirety and
replaced with the following:
CDSC Waivers. We will waive the CDSC payable upon redemptions of shares
which you purchased after June 27, 1995 for:
. redemptions made within one year after the death of a shareholder or
registered joint owner
. minimum required distributions made from an IRA or other individual
retirement plan account after you reach age 70 1/2
. involuntary redemptions made by the Fund
. redemptions limited to 10% per year of the account's NAV. For example, if
you maintain an annual balance of $10,000 you can redeem up to $1,000
annually free of charge.
We will waive the CDSC payable upon redemptions of shares which you
purchased after December 1, 1998 for:
. redemptions made from an IRA or other individual retirement plan account
established through Comerica Securities, Inc. after you reach age 59 1/2
and after the eighteen month anniversary of the purchase of Fund shares.
Consult the SAI for Class B Share CDSC waivers which apply when you redeem
shares acquired in an exchange of shares of another Fund of the Company or the
Trust that were purchased on or before June 27, 1995.
We will waive the CDSC for Class B Shares for all redemptions by Merrill
Lynch Plans if: (i) the Plan is recordkept on a daily valuation basis by
Merrill Lynch; or (ii) the Plan is recordkept on a daily valuation basis by an
independent recordkeeper whose services are provided through a contract or
alliance arrangement with Merrill Lynch; or (iii) the Plan has less than 500
eligible employees, as determined by the Merrill Lynch plan conversion
manager, on the date the Plan Sponsor signs the Merrill Lynch Recordkeeping
Service Agreement.
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated August 10, 1999
to Prospectus Dated October 27, 1998
Class K Shares of:
The Munder Equity Selection Fund
WHAT ARE THE RISKS OF INVESTING IN THE FUND?
The Boards of Directors of The Munder Funds, Inc. has approved the
following addition to the above-referenced provision of the prospectus:
The Fund may from time to time engage in short-term trading in Equity
Securities, including initial public offerings. Such short-term trading may
result in increased transaction costs and expenses and the realization of
short-term capital gains and losses.
GOAL AND PRINCIPAL INVESTMENTS
The "FUND INFORMATION--Goal and Principal Investments" section in the
prospectus is deleted in its entirety and supplemented as follows:
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide long-term
capital appreciation.
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities. "Equity Securities" include common stocks,
preferred stocks, warrants and other securities convertible into common
stock, including convertible bonds and convertible preferred stock.
. The Advisor's dedicated research team invests the Fund's assets in Equity
Securities which it believes are undervalued compared to stocks of other
companies in the same industry.
. The Fund generally invests in issuers with market capitalizations of at
least $1 billion.
. The Fund diversifies its assets by industry in approximately the same
weightings as those of the Standard & Poor's 500 Composite Stock Price
Index ("S&P 500").
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated August 10, 1999
to Prospectus Dated October 27, 1998
Class Y Shares of:
The Munder Equity Selection Fund
WHAT ARE THE RISKS OF INVESTING IN THE FUND?
The Boards of Directors of The Munder Funds, Inc. has approved the
following addition to the above-referenced provision of the prospectus:
The Fund may from time to time engage in short-term trading in Equity
Securities, including initial public offerings. Such short-term trading may
result in increased transaction costs and expenses and the realization of
short-term capital gains and losses.
CHANGE OF ADDRESS
Please send your Account Application by mail to: The Munder Funds, c/o
First Data Investor Services Group, P.O. Box 60428, King of Prussia,
Pennsylvania 19406-0428.
GOAL AND PRINCIPAL INVESTMENTS
The "FUND INFORMATION--Goal and Principal Investments" section in the
prospectus is deleted in its entirety and replaced with the following:
GOAL AND PRINCIPAL INVESTMENTS. The Fund's goal is to provide long-term
capital appreciation.
. Under normal market conditions, the Fund will invest at least 65% of its
assets in Equity Securities. "Equity Securities" include common stocks,
preferred stocks, warrants and other securities convertible into common
stock, including convertible bonds and convertible preferred stock.
. The Advisor's dedicated research team invests the Fund's assets in Equity
Securities which it believes are undervalued compared to stocks of other
companies in the same industry.
. The Fund generally invests in issuers with market capitalizations of at
least $1 billion.
. The Fund diversifies its assets by industry in approximately the same
weightings as those of the Standard & Poor's 500 Composite Stock Price
Index ("S&P 500").
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated August 10, 1999
to Statement of Additional Information dated October 27, 1998
Munder Balanced Fund, Munder Equity Selection Fund, Munder Growth & Income Fund,
Munder Index 500 Fund, Munder International Equity Fund, Munder Micro-Cap Equity
Fund, Munder Multi-Season Growth Fund, Munder NetNet Fund, Munder Real Estate
Equity Investment Fund, Munder Small-Cap Value Fund, Munder Small Company Growth
Fund, Munder Value Fund, Munder Framlington Emerging Markets Fund, Munder
Framlington Global Financial Services Fund, Munder Framlington Healthcare Fund,
Munder Framlington International Growth Fund, Munder Bond Fund, Munder
Intermediate Bond Fund, Munder International Bond Fund, Munder U.S. Government
Income Fund, Munder Michigan Tax-Free Bond Fund, Munder Tax-Free Bond Fund,
Munder Tax-Free Intermediate Bond Fund, Munder Short Term Treasury Fund, Munder
Cash Investment Fund, Munder Money Market Fund, Munder Tax-Free Money Market
Fund and Munder U.S. Treasury Money Market Fund
CHANGE OF INVESTMENT ADVISOR FOR INTERNATIONAL EQUITY FUND AND INDEX 500 FUND
Effective August 3, 1999, the Boards of Directors/Trustees of The Munder
Funds, Inc. and The Munder Funds Trust has approved World Asset Management, Inc.
("WAM") as investment advisor to the International Equity Fund and the Index 500
Fund.
WAM, with its principal offices at 255 East Brown Street, Birmingham,
Michigan 48009-6208, is a wholly-owned subsidiary of Munder Capital Management.
As of June 30, 1999, WAM had approximately $20.4 billion in assets under
management, of which $15.96 billion were invested in domestic equity securities,
$3.9 billion were invested in international equity securities and $0.5 billion
were invested in other fixed income securities.
WAM is entitled to receive an annual fee equal to .20% of the first $250
million of the Index 500 Fund's average daily net assets, .12% of the next $250
million of the Fund's average daily net assets and .07% of the Fund's average
daily net assets over $500 million and 0.75% of the International Equity Fund's
average daily net assets.
INVESTMENT ADVISORY AGREEMENT
The second paragraph of the "INVESTMENT ADVISORY AND OTHER SERVICE
ARRANGEMENTS" section in the Statement of Additional Information is deleted in
its entirety and replaced with the following:
The Funds have entered into Investment Advisory Agreements (the "Advisory
Agreements") with the Advisor on behalf of each Fund of the Company, the Trust
and Framlington. The Advisory Agreements have been approved by the Boards of
Directors/Trustees and by the shareholders of each Fund.
<PAGE>
THIS SUPPLEMENT SUPERCEDES ALL PRIOR SUPPLEMENTS
The Munder Funds
Supplement Dated August 10, 1999
to Statement of Additional Information dated October 27, 1998
Munder All-Season Aggressive Fund, Munder All-Season Conservative Fund,
Munder All-Season Moderate Fund
CHANGE OF INVESTMENT ADVISOR FOR UNDERLYING FUNDS-
INTERNATIONAL EQUITY FUND AND INDEX 500 FUND
Effective August 3, 1999, the Boards of Directors/Trustees of The Munder
Funds, Inc. and The Munder Funds Trust has approved World Asset Management, Inc.
("WAM") as investment advisor to the International Equity Fund and the Index 500
Fund.
WAM, with its principal offices at 255 East Brown Street, Birmingham,
Michigan 48009-6208, is a wholly-owned subsidiary of Munder Capital Management.
As of June 30, 1999, WAM had approximately $20.4 billion in assets under
management, of which $15.96 billion were invested in domestic equity securities,
$3.9 billion were invested in international equity securities and $0.5 billion
were invested in other fixed income securities.
INVESTMENT ADVISORY AGREEMENT
The second paragraph of the "INVESTMENT ADVISORY AND OTHER SERVICE
ARRANGEMENTS" section in the Statement of Additional Information is deleted in
its entirety and replaced with the following:
The Funds have entered into an Investment Advisory Agreement (the "Advisory
Agreement") with the Advisor on behalf of each Fund of the Company. The Advisory
Agreement has been approved by the Board of Directors and by the shareholders of
each Fund.
