Rule 497
File No. 811-33-66396
SUPPLEMENT DATED JUNE 15, 1998
TO THE PROSPECTUS OF
The Florida TaxFree Money Market Fund
The Florida TaxFree ShortTerm Fund
dated August 31, 1997
The "Annual Fund Operating Expenses" Section of the Prospectus is revised to
read as follows:
Money Fund ShortTerm Fund
Annual Fund Operating Expenses -
(as a percentage of average net assets)
Management Fee After Fee Waivers .26% .15%
12b-1 Fee* After Fee Waivers .00% .00%
Other Expenses After Fee Waivers .14% .25%
Total Fund Operating Expenses After Fee Waivers+ .40% .40%
* Each Fund may incur 12b-1 fees in a maximum amount up to .25% of its
average net assets, and as a result, it is possible that long-term shareholders
of the ShortTerm Fund may pay more than the economic equivalent of the maximum
front-end sales charges permitted by the National Association of Securities
Dealers.
Example++
You would pay the following expenses on a $1,000 investment in each of the
Funds, assuming (1) a 5% annual return and (2) full redemption at the end of
each time period:
One Year Three Years Five Years Ten Years
Money Fund $ 4 $ 13 $ 23 $ 52
ShortTerm Fund $ 4 $ 13 $ 23 $ 52
+ Total Fund Operating Expenses are based on each Fund's expenses after
the imposition of fee reductions and includes each Fund's "Other Expenses."
Fees have been restated to reflect current expenses of the Funds. Effective
June 15, 1998, William R. Hough & Co. ("WRH," the "Adviser," "Distributor" and
"Transfer Agent" for the Funds) has agreed to reduce all management fees and
limit normal operating expenses of the Funds to the extent that they exceed
40 basis points (.40 of 1%) of the average daily net assets of each Fund. This
policy will remain in effect until 30 days prior notice is given to the
shareholders of the Funds. In no event will William R. Hough & Co. impose
management fees and permit expenses (including management fees, but excluding
12b-1 fee expenses) to exceed .40% and .50% of the average daily net assets of
the Money Fund and ShortTerm Fund, respectively, on an annual basis. The
Adviser reserves the right to terminate or revise this policy after giving
advance notice to shareholders. In the event these policies terminate or
expire without a continuance, and to the extent the Funds' expense ratios may
be increased, such a change would have the effect of lowering yields to
shareholders. If these agreements were not in effect, the management fee,
distribution fee and total operating expenses for the fiscal year ended April
30, 1997 would have been .50%, .12% and .78%, respectively, for the Money
Fund, and .60%, .25% and 1.18%, respectively, for the ShortTerm Fund. In
addition to these expenses, a $10 bank wire fee may be imposed for wire
transactions, and shareholders who participate in the Sweep Account service
through a financial institution may be charged fees for services relating to
this program by the financial institution.
++This example should not be considered a representation of past or future
performance or expenses. The assumed 5% annual return is hypothetical and actual
Fund performance and expenses may be greater or less than the assumed amounts.
June 15, 1998
