NORTHSTAR INVESTMENT MANAGEMENT CORPORATION
TWO PICKWICK PLAZA
GREENWICH, CONNECTICUT 06830
(203) 863-6216
Via EDGAR Transmission
July 16, 1996
Securities and Exchange Commission
450 Fifth Street
Washington, D.C. 20549
RE: Northstar Advantage Funds
Northstar Advantage Trust - No. 33-67852/811-7978
Gentlemen:
Transmitted herewith for filing pursuant to Rule 497(e) under the Securities Act
of 1933 is a supplement, dated July 16, 1996, to the combined Prospectus dated
February 29, 1996 for the above-named registrant.
The prospectus is being stickered to disclose an approved subadvisory
arrangement for the Northstar Advantage Income and Growth Fund.
Should you have any questions regarding this submission, please contact the
undersigned at (203) 863-6216.
Sincerely,
/s/
Stephanie L. Beckner
<PAGE>
NORTHSTAR ADVANTAGE INCOME AND GROWTH FUND
Prospectus Supplement dated July 16, 1996
to Prospectus dated February 29, 1996
Effective August 1, 1996, Wilson/Bennett Capital Management, Inc.
("Wilson/Bennett") will manage the common stock portfolio of the Northstar
Advantage Income and Growth Fund pursuant to a Subadvisory Agreement (the
"Agreement") between Wilson/Bennett and Northstar Investment Management
Corporation ("NIMC"). NIMC will designate the percentage of Fund assets to be
managed by Wilson/Bennett and will continue to select and communicate purchase
and sale orders to brokers and dealers who execute orders for the Fund.
John W. Fisher will serve as primary portfolio manager of the Fund's assets
allocated for investment in common stocks. For the past five years, Mr. Fisher
has been the controlling principal, president and sole director of
Wilson/Bennett. Margaret Patel will make all determinations related to the
allocation of the Fund's assets, will direct all trades and will remain the
person primarily responsible for investments in fixed income securities.
The Agreement provides that NIMC, not the Fund, will pay Wilson/Bennett an
annual fee, calculated and accrued daily and paid monthly, equal to 0.20 of 1%
of the first $125 million of average daily net assets of the Fund managed by
Wilson/Bennett, increasing to 0.25 of 1% for the next $125 million, and to 0.30
of 1% for assets managed in excess of $250 million. The Fund's annual advisory
fee will remain at 0.75 of 1% of the Fund's average daily net assets.
