SUPPLEMENT DATED AUGUST 10, 1998 TO
THE STATEMENTS OF ADDITIONAL INFORMATION OF
THE MERRILL LYNCH SELECT PRICING(Service Mark) SYSTEM FUNDS
Reference is made to the section in the Statement of Additional
Information entitled "Shareholder Services - Exchange Privilege." Effective on
or about October 12, 1998, it is anticipated that the following changes will
be made:
1. The sentence dealing with exchanges into money market funds in the
first paragraph in such section will be deleted and replaced in its entirety
with the following sentence:
Class A and Class D shares also will be exchangeable for Class A shares,
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 as more fully described below.
2. The paragraph dealing with exchanges into money market funds in such
section will be deleted and replaced in its entirety with the following
paragraphs:
Shareholders also may exchange their shares into shares of Summit
Cash Reserves Fund, 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 and Class D shares will be
exchangeable for Class A shares of, and Class B and Class C shares will
be exchangeable for Class B shares of, Summit Cash Reserves Fund. 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-ALL4
