SUPPLEMENT DATED AUGUST 10, 1998 TO THE PROSPECTUSES OF
THE MERRILL LYNCH SELECT PRICINGSM SYSTEM FUNDS
Reference is made to the section in the Prospectus entitled
"Shareholder Services - Exchange Privilege." Effective on or about October 12,
1998, it is anticipated that the paragraph dealing with exchanges into money
market funds in such section will be deleted and replaced in its entirety with
the following paragraphs:
Class A and Class D shares also will be exchangeable for Class
A shares of, and Class B and Class C shares also will be exchangeable
for Class B shares of, Summit Cash Reserves Fund, a series of Financial
Institutions Series Trust, which is a Merrill Lynch-sponsored money
market fund specifically designated as available for exchange by
holders of Class A, Class B, Class C and Class D shares. Class A shares
of Summit Cash Reserves Fund have an exchange privilege back into Class
A or Class D shares of MLAM-advised funds; Class B shares of Summit
Cash Reserves Fund have an exchange privilege back into Class B or
Class C shares of MLAM-advised funds. The period of time that Class B
shares of Summit Cash Reserves Fund are held will count toward
satisfaction of the holding period requirement for purposes of reducing
any CDSC and, with respect to Class B shares, toward satisfaction of
any Conversion Period. Class B shares of Summit Cash Reserves Fund will
be subject to a distribution fee at an annual rate of 0.75% of average
daily net assets of such Class B shares.
The exchange privilege described above does not apply with
respect to certain Merrill Lynch fee-based programs, for which
alternative exchange arrangements may exist. Please see your Merrill
Lynch Financial Consultant for further information.
CODE # SELECT-ALL3
