INTERNATIONAL
MORGAN GRENFELL INVESTMENT TRUST
Institutional Shares
Supplement dated September 24, 1998 to
Prospectus and Statement of Additional Information dated
February 25, 1998 (Revised March 6, 1998)
This supplement provides new and additional information beyond that contained in
the Prospectus and Statement of Additional Information ("SAI"). It should be
retained and read in conjunction with such Prospectus or SAI.
For the Prospectus and SAI:
- ---------------------------
FUND NAME CHANGES
European Equity Fund
The name of the European Equity Fund has been changed to the European Equity
Growth Fund. The Prospectus and SAI are hereby amended to reflect this change.
Pacific Basin Equity Fund
The name of the Pacific Basin Equity Fund has been changed to the New Asia Fund.
The Prospectus and SAI are hereby amended to reflect this change.
MANAGEMENT OF THE FUNDS
Administrator
Effective November 1, 1988, Morgan Grenfell Capital Management, Inc. (the
"Administrator"), 150 South Independence Square West, Philadelphia, PA 19106,
serves as the Trust's administrator pursuant to an Administration Agreement
dated August 27, 1998. See "Management of the Funds - Administrator and
Distributor" in the Prospectus and "Investment Advisory and Other Services -
Administrator" in the SAI for a description of the services provided under the
Administration Agreement.
For its services under the Administration Agreement, the Administrator receives
a monthly fee at the following annual rates of the aggregate average daily net
assets of such Fund: 0.25% for the Fixed Income Funds; 0.30% for the Equity
Funds. The Administrator will pay Accounting Agency and Transfer Agency fees out
of the Administration fee. Previously, these fees were charged directly to the
Funds. Net Fund Operating Expenses will remain unchanged since the Adviser has
agreed to reduce its advisory fee and to make arrangements to limit certain
other expenses to the extent necessary to limit Fund Operating Expenses of each
Fund to the specified percentage of each Fund's net assets as demonstrated in
the Expense Information table on page 4 of the prospectus. In its sole
discretion the Adviser may terminate or modify this voluntary agreement at any
time after October 31, 1998.
<PAGE>
Custodian
Brown Brothers Harriman and Co. (the "Custodian"), 40 Water Street, Boston, MA
02109, serves as the Trust's custodian pursuant to a Custodian Agreement. See
"Investment Advisory and Other Services - Custodian" in the SAI for a
description of the services provided under the Custodian Agreement.
For the Prospectus:
- -------------------
INVESTMENT OBJECTIVES AND POLICIES
European Equity Growth Fund
The following paragraph replaces in its entirety the first paragraph under
"Investment Objectives and Policies - European Equity Fund" in the Prospectus.
The investment objective of the European Equity Growth Fund is to maximize
capital appreciation. Under normal circumstances, the Fund pursues this
objective by investing at least 65% of its total assets in equity and
equity-related securities of issuers located in Europe, including France,
Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, and the United
Kingdom, or such other European countries as the Fund's investment adviser may
select in its discretion.
New Asia Fund
The following paragraph replaces in its entirety the first paragraph under
"Investment Objectives and Policies - Pacific Basin Equity Fund" in the
Prospectus.
The investment objective of the New Asia Fund is to maximize capital
appreciation. Under normal circumstances, the Fund pursues this objective by
investing at least 65% of its total assets in equity and equity-related
securities of companies located in Asian Pacific Basin countries, including
Australia, Malaysia, Singapore, Hong Kong, Thailand, the Philippines, Indonesia,
Taiwan, South Korea and New Zealand, or such other Pacific Basin countries as
the Fund's investment adviser may select in its discretion.
PURCHASE OF INSTITUTIONAL SHARES
The following paragraphs replace in their entirety the first paragraph under
"Purchase of Institutional Shares" in the Prospectus:
Investors may invest in institutional shares by establishing a shareholder
account with the Trust. Alternatively, each Fund has authorized brokers to
accept purchase and redemption orders on each Fund's behalf. Brokers are, in
turn, authorized to designate other intermediaries to accept purchase and
redemption orders on a Fund's behalf. Investors who invest through brokers or
their designated intermediaries may be subject to minimums established by their
broker or designated intermediary.
Investors who establish shareholder accounts with the Trust should submit
purchase orders to the Transfer Agent as described below. Investors who invest
through authorized brokers or their designated intermediaries should submit
purchase orders directly to their broker or designated intermediary. The broker
or intermediary may charge you a transaction fee. A Fund will be deemed to have
received a purchase or redemption order when an authorized broker or, if
applicable, a broker's authorized designee, accepts the order. Institutional
shares of any Fund may be purchased on any Business Day at the net asset value
next determined after receipt of the order, in good order, by the Transfer Agent
or the investor's broker or designated intermediary, as the case may be. A
"Business Day" means any day on which the New York Stock Exchange (the "NYSE")
is open. For an investor who has a shareholder
2
<PAGE>
account with the Trust, the Transfer Agent must receive the investor's purchase
order before the close of regular trading on the NYSE (usually 4:00 p.m.,
Eastern Time) for the investor to receive that day's net asset value. For an
investor who invests through an authorized broker or designated intermediary,
the broker or intermediary must receive the investor's purchase order before the
close of regular trading on the NYSE and promptly forward such order to the
Transfer Agent for the investor to receive that day's net asset value. Brokers
and designated intermediaries are responsible for promptly forwarding such
investors' purchase orders to the Transfer Agent.
Shareholders will be entitled to dividends payable with respect to their shares
of a Fund if they are shareholders of the Fund on the record date for such
dividend. There is no sales charge in connection with purchases of institutional
shares. The Trust reserves the right, in its sole discretion, to reject any
purchase offer and to suspend the offering of shares.
REDEMPTION OF INSTITUTIONAL SHARES
The following paragraph replaces in its entirety the first paragraph under
"Redemption of Institutional Shares" in the Prospectus.
Investors who establish shareholder accounts with the Trust should submit
redemption orders to the Transfer Agent as described below. Investors who invest
through authorized brokers or their designated intermediaries should submit
redemption orders directly to their broker or designated intermediary. The
broker or intermediary may charge a transaction fee. A Fund will be deemed to
have received a redemption order when an authorized broker or, if applicable, a
broker's authorized designee, accepts the order. Institutional shares of any
Fund may be redeemed on any Business Day at the net asset value next determined
after receipt of the order, in good order, by the Transfer Agent or by the
investor's broker or designated intermediary, as the case may be. A "Business
Day" means any day on which the New York Stock Exchange (the "NYSE") is open.
For an investor who has a shareholder account with the Trust, the Transfer Agent
must receive the investor's redemption order before the close of regular trading
on the NYSE (usually 4:00 p.m., Eastern Time) for the investor to receive that
day's net asset value. For an investor who invests through an authorized broker
or designated intermediary, the broker or intermediary must receive the
investor's redemption order before the close of regular trading on the NYSE and
promptly forward such order to the Transfer Agent for the investor to receive
that day's net asset value. Authorized brokers and intermediaries are
responsible for promptly forwarding such investors' redemption orders to the
Transfer Agent.
CHANGE OF ADDRESS FOR OVERNIGHT MAIL FOR DST SYSTEMS, INC.
The following address replaces in its entirety the address for overnight mail
for DST Systems, Inc. under "Purchases of Institutional Shares - Purchases by
Mail" and "Purchases of International Shares - Purchases by Wire" in the
Prospectus:
By Overnight Mail:
- ------------------
Morgan Grenfell Investment Trust
c/o DST Systems, Inc. CT-8 Tower
330 West 9th Street
Kansas City, MO 64105
For the SAI:
- ------------
TRUSTEES AND OFFICERS
3
<PAGE>
The following paragraph is hereby deleted from the section titled "Trustees and
Officers" within the Statement of Additional Information:
Martin Hall Vice President Portfolio Manager, Fixed
150 S. Independence Sq. W. Income Team
Philadelphia, PA 19106 MGIS (since 1988)
(age 39)
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
4
<PAGE>
DOMESTIC
MORGAN GRENFELL INVESTMENT TRUST
Institutional Shares
Supplement dated September 24, 1998 to
Prospectus and Statement of Additional Information dated
February 25, 1998 (Revised March 6, 1998)
This supplement provides new and additional information beyond that contained in
the Prospectus and Statement of Additional Information ("SAI"). It should be
retained and read in conjunction with such Prospectus and SAI.
For the Prospectus and SAI:
- ---------------------------
MANAGEMENT OF THE FUNDS
Subadviser for Total Return Bond Fund
Morgan Grenfell Investment Services Limited ("MGIS"), located at 20 Finsbury
Circus, London, England, acts as Subadviser for the international component of
the Total Return Bond Fund pursuant to the terms of a subadvisory contract. MGIS
is registered as an investment adviser with the Commission and provides a full
range of international investment advisory services to institutional clients.
All of the outstanding voting stock of MGIS is owned by Morgan Grenfell Asset
Management, Ltd. ("MGAM"), which is an indirect wholly owned subsidiary of
Deutsche Bank AG, an international commercial and investment banking group. As
of June 30, 1997, MGIS managed approximately $16 billion in assets. Under the
Subadvisory contract, the Adviser, and not the Fund, will pay the Subadviser
0.08% of the average daily net assets of the Total Return Bond Fund.
Administrator
Effective November 1, 1988, Morgan Grenfell Capital Management, Inc. (the
"Administrator"), 150 South Independence Square West, Philadelphia, PA 19106,
serves as the Trust's administrator pursuant to an Administration Agreement
dated August 27, 1998. See "Management of the Funds - Administrator and
Distributor" in the Prospectus and "Investment Advisory and Other Services -
Administrator" in the SAI for a description of the services provided under the
Administration Agreement.
For its services under the Administration Agreement, the Administrator receives
a monthly fee at the following annual rates of the aggregate average daily net
assets of such Fund: 0.12% for the Fixed Income Funds; 0.22% for the Equity
Funds. The Administrator will pay Accounting Agency and Transfer Agency fees out
of the Administration fee. Previously, these fees were charged directly to the
Funds. Net Fund Operating Expenses will remain unchanged since the Adviser has
agreed to reduce its advisory fee and to make arrangements to limit certain
other expenses to the extent necessary to limit Fund Operating Expenses of each
Fund to the specified percentage of each Fund's net assets as demonstrated in
the Expense Information table on page 4 of the prospectus. In its sole
discretion the Adviser may terminate or modify this voluntary agreement at any
time after October 31, 1998.
Custodian
Effective October 13, 1988, Brown Brothers Harriman and Co. (the "Custodian"),
40 Water Street, Boston, MA 02109, serves as the Trust's custodian pursuant to a
Custodian Agreement. See "Investment
5
<PAGE>
Advisory and Other Services - Custodian" in the SAI for a description of the
services provided under the Custodian Agreement.
For the Prospectus:
- -------------------
INVESTMENT OBJECTIVES AND POLICIES
Total Return Bond Fund
The following paragraph replaces in its entirety the second paragraph under
"Investment Objectives and Policies Total Return Bond Fund" in the Prospectus:
Under normal circumstances, the Fund may invest up to 35% of its total assets in
cash, money market instruments and, subject to the limits described below,
foreign currency-denominated bonds and below investment grade bonds, including
below investment grade bonds of issuers located in countries with emerging
securities markets. The Fund may not invest more than 30% of its total assets in
foreign currency-denominated bonds. At the discretion of the Adviser, the Fund
may use certain techniques, including forward foreign currency exchange
contracts, options and futures on currencies and currency swaps, to manage its
exposure to fluctuations in currency exchange rates and, in some circumstances,
to seek to profit from exchange rate fluctuations.
MANAGEMENT OF THE FUNDS
The following paragraph replaces in its entirety the sixth paragraph under
"Management of the Funds" in the Prospectus relating to the High Yield Bond
Fund:
Mr. Curtiss O. Barrows is a senior vice president with the Adviser and serves as
the portfolio manager of the High Yield Bond Fund. Mr. Barrows has been in the
investment advisory business since 1981.
PURCHASE OF INSTITUTIONAL SHARES
The following paragraphs replace in their entirety the first paragraph under
"Purchase of Institutional Shares" in the Prospectus:
Investors may invest in institutional shares by establishing a shareholder
account with the Trust. Alternatively, each Fund has authorized brokers to
accept purchase and redemption orders on each Fund's behalf. Brokers are, in
turn, authorized to designate other intermediaries to accept purchase and
redemption orders on a Fund's behalf. Investors who invest through brokers or
their designated intermediaries may be subject to minimums established by their
broker or designated intermediary.
Investors who establish shareholder accounts with the Trust should submit
purchase orders to the Transfer Agent as described below. Investors who invest
through authorized brokers or their designated intermediaries should submit
purchase orders directly to their broker or designated intermediary. The broker
or intermediary may charge you a transaction fee. A Fund will be deemed to have
received a purchase or redemption order when an authorized broker or, if
applicable, a broker's authorized designee, accepts the order. Institutional
shares of any Fund may be purchased on any Business Day at the net asset value
next determined after receipt of the order, in good order, by the Transfer Agent
or the investor's broker or designated intermediary, as the case may be. A
"Business Day" means any day on which the New York Stock Exchange (the "NYSE")
is open. For an investor who has a shareholder account with the Trust, the
Transfer Agent must receive the investor's purchase order before the close of
regular trading on the NYSE (usually 4:00 p.m., Eastern Time) for the investor
to receive that day's net asset value. For an investor who invests through an
authorized broker or designated intermediary, the
6
<PAGE>
broker or intermediary must receive the investor's purchase order before the
close of regular trading on the NYSE and promptly forward such order to the
Transfer Agent for the investor to receive that day's net asset value. Brokers
and designated intermediaries are responsible for promptly forwarding such
investors' purchase orders to the Transfer Agent.
Shareholders will be entitled to dividends payable with respect to their shares
of a Fund if they are shareholders of the Fund on the record date for such
dividend. There is no sales charge in connection with purchases of institutional
shares. The Trust reserves the right, in its sole discretion, to reject any
purchase offer and to suspend the offering of shares.
REDEMPTION OF INSTITUTIONAL SHARES
The following paragraph replaces in its entirety the first paragraph under
"Redemption of Institutional Shares" in the Prospectus.
Investors who establish shareholder accounts with the Trust should submit
redemption orders to the Transfer Agent as described below. Investors who invest
through authorized brokers or their designated intermediaries should submit
redemption orders directly to their broker or designated intermediary. The
broker or intermediary may charge a transaction fee. A Fund will be deemed to
have received a redemption order when an authorized broker or, if applicable, a
broker's authorized designee, accepts the order. Institutional shares of any
Fund may be redeemed on any Business Day at the net asset value next determined
after receipt of the order, in good order, by the Transfer Agent or by the
investor's broker or designated intermediary, as the case may be. A "Business
Day" means any day on which the New York Stock Exchange (the "NYSE") is open.
For an investor who has a shareholder account with the Trust, the Transfer Agent
must receive the investor's redemption order before the close of regular trading
on the NYSE (usually 4:00 p.m., Eastern Time) for the investor to receive that
day's net asset value. For an investor who invests through an authorized broker
or designated intermediary, the broker or intermediary must receive the
investor's redemption order before the close of regular trading on the NYSE and
promptly forward such order to the Transfer Agent for the investor to receive
that day's net asset value. Authorized brokers and intermediaries are
responsible for promptly forwarding such investors' redemption orders to the
Transfer Agent.
CHANGE OF ADDRESS FOR OVERNIGHT MAIL FOR DST SYSTEMS, INC.
The following address replaces in its entirety the address for overnight mail
for DST Systems, Inc. under "Purchase of Institutional Shares - Purchases by
Mail" and "Purchase of Institutional Shares - Purchases by Wire" in the
Prospectus:
By Overnight Mail:
- ------------------
Morgan Grenfell Investment Trust
c/o DST Systems, Inc. CT-8 Tower
330 West 9th Street
Kansas City, MO 64105
APPENDIX A
The following replaces in its entirety the section titled "Performance of MGCM
Microcap Composite and Russell 2000" in Appendix A of the Prospectus.
7
<PAGE>
MORGAN GRENFELL INVESTMENT TRUST
Morgan Grenfell Microcap Fund
Performance of MGCM Microcap Composite And Russell 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
----------------------------------------------------------------
MGCM Microcap Composite Russell 2000
Year (Net Of Fees)
----------------------------------------------------------------
<S> <C> <C>
1997 18.80% 22.36%
1996 50.67% 16.49%
1995 54.29% 28.44%
1994 (16.71)% (1.81)%
1993 18.15% 18.89%
1992 3.49% 18.42%
1991 74.37% 46.05%
1990 (2.48)% (19.50)%
1989 24.25% 16.24%
1988 14.13% 24.89%
1987 (4.91)% (8.77)%
----------------------------------------------------------------
Annualized Total Return 18.47% 13.28%
for Period from
December 31, 1986
to December 31, 1997
</TABLE>
For the SAI:
- ------------
TRUSTEES AND OFFICERS
The following paragraph is hereby deleted from the section titled "Trustees and
Officers" within the Statement of Additional Information:
Martin Hall Vice President Portfolio Manager, Fixed
150 S. Independence Sq. W. Income Team
Philadelphia, PA 19106 MGIS (since 1988)
(age 39)
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
8
<PAGE>
INTERNATIONAL EQUITY
MORGAN GRENFELL INVESTMENT TRUST
Service Shares
Supplement dated September 24, 1998 to
Prospectus and Statement of Additional Information dated
February 25, 1998 (Revised March 6, 1998)
This supplement provides new and additional information beyond that contained in
the Prospectus and Statement of Additional Information ("SAI"). It should be
retained and read in conjunction with such Prospectus and SAI.
For the Prospectus and SAI:
- ---------------------------
FUND NAME CHANGES
European Equity Fund
The name of the European Equity Fund has been changed to the European Equity
Growth Fund. The Prospectus and SAI are hereby amended to reflect this change.
Pacific Basin Equity Fund
The name of the Pacific Basin Equity Fund has been changed to the New Asia Fund.
The Prospectus and SAI are hereby amended to reflect this change.
MANAGEMENT OF THE FUNDS
Administrator
Effective November 1, 1988, Morgan Grenfell Capital Management, Inc. (the
"Administrator"), 150 South Independence Square West, Philadelphia, PA 19106,
serves as the Trust's administrator pursuant to an Administration Agreement
dated August 27, 1998. See "Management of the Funds - Administrator and
Distributor" in the Prospectus and "Investment Advisory and Other Services -
Administrator" in the SAI for a description of the services provided under the
Administration Agreement.
For its services under the Administration Agreement, the Administrator receives
a monthly fee at the annual rate of 0.30% of the aggregate average daily net
assets of each Fund. The Administrator will pay Accounting Agency and Transfer
Agency fees out of the Administration fee. Previously, these fees were charged
directly to the Funds. Net Fund Operating Expenses will remain unchanged since
the Adviser has agreed to reduce its advisory fee and to make arrangements to
limit certain other expenses to the extent necessary to limit Fund Operating
Expenses of each Fund to the specified percentage of each Fund's net assets as
demonstrated in the Expense Information table on page 3 of the prospectus. In
its sole discretion the Adviser may terminate or modify this voluntary agreement
at any time after October 31, 1998.
Custodian
Brown Brothers Harriman and Co. (the "Custodian"), 40 Water Street, Boston, MA
02109, serves as the Trust's custodian pursuant to a Custodian Agreement. See
"Investment Advisory and Other Services - Custodian" in the SAI for a
description of the services provided under the Custodian Agreement.
9
<PAGE>
For the Prospectus:
- -------------------
INVESTMENT OBJECTIVES AND POLICIES
European Equity Growth Fund
The following paragraph replaces in its entirety the first paragraph under
"Investment Objectives and Policies - European Equity Fund" in the Prospectus.
The investment objective of the European Equity Growth Fund is to maximize
capital appreciation. Under normal circumstances, the Fund pursues this
objective by investing at least 65% of its total assets in equity and
equity-related securities of issuers located in Europe, including France,
Germany, Italy, the Netherlands, Spain, Sweden, Switzerland, and the United
Kingdom, or such other European countries as the Fund's investment adviser may
select in its discretion.
New Asia Fund
The following paragraph replaces in its entirety the first paragraph under
"Investment Objectives and Policies - Pacific Basin Equity Fund" in the
Prospectus.
The investment objective of the New Asia Fund is to maximize capital
appreciation. Under normal circumstances, the Fund pursues this objective by
investing at least 65% of its total assets in equity and equity-related
securities of companies located in Asian Pacific Basin countries, including
Australia, Malaysia, Singapore, Hong Kong, Thailand, the Philippines, Indonesia,
Taiwan, South Korea and New Zealand, or such other Pacific Basin countries as
the Fund's investment adviser may select in its discretion.
PURCHASE OF SERVICE SHARES
The following paragraphs replace in their entirety the first two paragraphs
under "Purchase of Service Shares" in the Prospectus:
In order to make an initial investment in service shares of a Fund, an investor
must establish an account with a Service Organization. Each Fund has authorized
Service Organizations, including authorized brokers of the Service
Organizations, to accept purchase and redemption orders on each Fund's behalf.
Brokers are, in turn, authorized to designate other intermediaries to accept
purchase and redemption orders on a Fund's behalf. Alternatively, investors may
invest in service shares by establishing a shareholder account with the Trust
(in addition to the account with their Service Organization). Investors who
invest through their Service Organization may be subject to minimums established
by their Service Organization for initial and subsequent investments. Unless
waived by the Trust, the minimum initial investment for service shares is
$250,000.
Investors who invest through Omnibus Accounts, authorized brokers or their
designated intermediaries should submit purchase orders directly to their
Service Organization, broker or designated intermediary. A Fund will be deemed
to have received a purchase or redemption order when a Service Organization, an
authorized broker or, if applicable, a broker's authorized designee, accepts the
order. Investors who establish shareholder accounts with the Trust should submit
purchase orders to the Transfer Agent as described below. Service shares of any
Fund may be purchased on any Business Day at the net asset value next determined
after receipt of the order, in good order, by the investor's Service
Organization, broker or designated intermediary, or by the Transfer Agent, as
the case may be. A "Business Day" means any day on which the New York Stock
Exchange (the "NYSE") is open. For an investor who invests through an Omnibus
Account or mutual fund marketplace, the investor's authorized broker or
designated intermediary must receive the investor's purchase order before the
close of regular trading on
10
<PAGE>
the NYSE (usually 4:00 p.m., Eastern Time) and promptly forward such order to
the Transfer Agent for the investor to receive that day's net asset value.
Service Organizations, brokers and designated intermediaries are responsible for
promptly forwarding such investors' purchase orders to the Transfer Agent. For
an investor who has a shareholder account with the Trust, the Transfer Agent
must receive the investor's purchase order before the close of regular trading
on the NYSE for the investor to receive that day's net asset value.
REDEMPTION OF SERVICE SHARES
The following paragraph replaces in its entirety, the first paragraph under
"Redemption of Service Shares" in the Prospectus.
Investors who invest through Omnibus Accounts, authorized brokers or their
designated intermediaries should submit redemption orders directly to their
Service Organization, broker or designated intermediary. A Fund will be deemed
to have received a redemption order when a Service Organization, an authorized
broker or, if applicable, a broker's authorized designee, accepts the order.
Investors who establish shareholder accounts with the Trust should submit
redemption orders to the Transfer Agent as described below. Service shares of
any Fund may be redeemed on any Business Day at the net asset value next
determined after receipt of the order, in good order, by the investor's Service
Organization, broker or designated intermediary, or by the Transfer Agent, as
the case may be. A "Business Day" means any day on which the New York Stock
Exchange (the "NYSE") is open. For an investor who invests through an Omnibus
Account or mutual fund marketplace, the investor's authorized broker or
designated intermediary must receive the investor's redemption order before the
close of regular trading on the NYSE (usually 4:00 p.m., Eastern Time) and
promptly forward such order to the Transfer Agent for the investor to receive
that day's net asset value. Service Organizations and authorized brokers and
intermediaries are responsible for promptly forwarding such investors'
redemption orders to the Transfer Agent. For an investor who has a shareholder
account with the Trust, the Transfer Agent must receive the investor's
redemption order before the close of regular trading on the NYSE for the
investor to receive that day's net asset value.
CHANGE OF ADDRESS FOR OVERNIGHT MAIL FOR DST SYSTEMS, INC.
The following address replaces in its entirety the address for overnight mail
for DST Systems, Inc. under "Purchase of Service Shares - Purchases by Mail" and
"Purchase of Service Shares - Purchases by Wire" in the Prospectus:
By Overnight Mail:
- ------------------
Morgan Grenfell Investment Trust
c/o DST Systems, Inc. CT-8 Tower
330 West 9th Street
Kansas City, MO 64105
For the SAI:
- ------------
TRUSTEES AND OFFICERS
The following paragraph is hereby deleted from the section titled "Trustees and
Officers" within the Statement of Additional Information:
Martin Hall Vice President Portfolio Manager, Fixed
150 S. Independence Sq. W. Income Team
Philadelphia, PA 19106 MGIS (since 1988)
(age 39)
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
11
<PAGE>
INTERNATIONAL FIXED INCOME
MORGAN GRENFELL INVESTMENT TRUST
Service Shares
Supplement dated September 24, 1998 to
Prospectus and Statement of Additional Information dated
February 25, 1998 (Revised March 6, 1998)
This supplement provides new and additional information beyond that contained in
the Prospectus and Statement of Additional Information ("SAI"). It should be
retained and read in conjunction with such Prospectus or SAI.
For the Prospectus and SAI:
- ---------------------------
MANAGEMENT OF THE FUNDS
Administrator
Effective November 1, 1988, Morgan Grenfell Capital Management, Inc. (the
"Administrator"), 150 South Independence Square West, Philadelphia, PA 19106,
serves as the Trust's administrator pursuant to an Administration Agreement
dated August 27, 1998. See "Management of the Funds - Administrator and
Distributor" in the Prospectus and "Investment Advisory and Other Services -
Administrator" in the SAI for a description of the services provided under the
Administration Agreement.
For its services under the Administration Agreement, the Administrator receives
a monthly fee at the annual rate of 0.25% of the aggregate average daily net
assets of each Fund. The Administrator will pay Accounting Agency and Transfer
Agency fees out of the Administration fee. Previously, these fees were charged
directly to the Funds. Net Fund Operating Expenses will remain unchanged since
the Adviser has agreed to reduce its advisory fee and to make arrangements to
limit certain other expenses to the extent necessary to limit Fund Operating
Expenses of each Fund to the specified percentage of each Fund's net assets as
demonstrated in the Expense Information table on page 3 of the prospectus. In
its sole discretion the Adviser may terminate or modify this voluntary agreement
at any time after October 31, 1998.
Custodian
Brown Brothers Harriman and Co. (the "Custodian"), 40 Water Street, Boston, MA
02109, serves as the Trust's custodian pursuant to a Custodian Agreement. See
"Investment Advisory and Other Services - Custodian" in the SAI for a
description of the services provided under the Custodian Agreement.
PURCHASE OF SERVICE SHARES
The following paragraphs replace in their entirety the first two paragraphs
under "Purchase of Service Shares" in the Prospectus:
In order to make an initial investment in service shares of a Fund, an investor
must establish an account with a Service Organization. Each Fund has authorized
Service Organizations, including authorized brokers of the Service
Organizations, to accept purchase and redemption orders on each Fund's behalf.
Brokers are, in turn, authorized to designate other intermediaries to accept
purchase and redemption
12
<PAGE>
orders on a Fund's behalf. Alternatively, investors may invest in service shares
by establishing a shareholder account with the Trust (in addition to the account
with their Service Organization). Investors who invest through their Service
Organization may be subject to minimums established by their Service
Organization for initial and subsequent investments. Unless waived by the Trust,
the minimum initial investment for service shares is $250,000.
Investors who invest through Omnibus Accounts, authorized brokers or their
designated intermediaries should submit purchase orders directly to their
Service Organization, broker or designated intermediary. A Fund will be deemed
to have received a purchase or redemption order when a Service Organization, an
authorized broker or, if applicable, a broker's authorized designee, accepts the
order. Investors who establish shareholder accounts with the Trust should submit
purchase orders to the Transfer Agent as described below. Service shares of any
Fund may be purchased on any Business Day at the net asset value next determined
after receipt of the order, in good order, by the investor's Service
Organization, broker or designated intermediary, or by the Transfer Agent, as
the case may be. A "Business Day" means any day on which the New York Stock
Exchange (the "NYSE") is open. For an investor who invests through an Omnibus
Account or mutual fund marketplace, the investor's authorized broker or
designated intermediary must receive the investor's purchase order before the
close of regular trading on the NYSE (usually 4:00 p.m., Eastern Time) and
promptly forward such order to the Transfer Agent for the investor to receive
that day's net asset value. Service Organizations, brokers and designated
intermediaries are responsible for promptly forwarding such investors' purchase
orders to the Transfer Agent. For an investor who has a shareholder account with
the Trust, the Transfer Agent must receive the investor's purchase order before
the close of regular trading on the NYSE for the investor to receive that day's
net asset value.
REDEMPTION OF SERVICE SHARES
The following paragraph replaces in its entirety, the first paragraph under
"Redemption of Service Shares" in the Prospectus.
Investors who invest through Omnibus Accounts, authorized brokers or their
designated intermediaries should submit redemption orders directly to their
Service Organization, broker or designated intermediary. A Fund will be deemed
to have received a redemption order when a Service Organization, an authorized
broker or, if applicable, a broker's authorized designee, accepts the order.
Investors who establish shareholder accounts with the Trust should submit
redemption orders to the Transfer Agent as described below. Service shares of
any Fund may be redeemed on any Business Day at the net asset value next
determined after receipt of the order, in good order, by the investor's Service
Organization, broker or designated intermediary, or by the Transfer Agent, as
the case may be. A "Business Day" means any day on which the New York Stock
Exchange (the "NYSE") is open. For an investor who invests through an Omnibus
Account or mutual fund marketplace, the investor's authorized broker or
designated intermediary must receive the investor's redemption order before the
close of regular trading on the NYSE (usually 4:00 p.m., Eastern Time) and
promptly forward such order to the Transfer Agent for the investor to receive
that day's net asset value. Service Organizations and authorized brokers and
intermediaries are responsible for promptly forwarding such investors'
redemption orders to the Transfer Agent. For an investor who has a shareholder
account with the Trust, the Transfer Agent must receive the investor's
redemption order before the close of regular trading on the NYSE for the
investor to receive that day's net asset value.
CHANGE OF ADDRESS FOR OVERNIGHT MAIL FOR DST SYSTEMS, INC.
The following address replaces in its entirety the address for overnight mail
for DST Systems, Inc. under "Purchase of Service Shares - Purchases by Mail" and
"Purchase of Service Shares - Purchases by Wire" in the Prospectus:
13
<PAGE>
By Overnight Mail:
- ------------------
Morgan Grenfell Investment Trust
c/o DST Systems, Inc. CT-8 Tower
330 West 9th Street
Kansas City, MO 64105
For the SAI:
- ------------
TRUSTEES AND OFFICERS
The following paragraph is hereby deleted from the section titled "Trustees and
Officers" within the Statement of Additional Information:
Martin Hall Vice President Portfolio Manager, Fixed
150 S. Independence Sq. W. Income Team
Philadelphia, PA 19106 MGIS (since 1988)
(age 39)
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
14
<PAGE>
DOMESTIC
MORGAN GRENFELL INVESTMENT TRUST
Service Shares
Supplement dated September 24, 1998 to
Prospectus and Statement of Additional Information dated
February 25, 1998 (Revised March 6, 1998)
This supplement provides new and additional information beyond that contained in
the Prospectus and Statement of Additional Information ("SAI"). It should be
retained and read in conjunction with such Prospectus and SAI.
For the Prospectus and SAI:
- ---------------------------
MANAGEMENT OF THE FUNDS
Subadviser for Total Return Bond Fund
Morgan Grenfell Investment Services Limited ("MGIS"), located at 20 Finsbury
Circus, London, England, acts as Subadviser for the international component of
the Total Return Bond Fund pursuant to the terms of a subadvisory contract. MGIS
is registered as an investment adviser with the Commission and provides a full
range of international investment advisory services to institutional clients.
All of the outstanding voting stock of MGIS is owned by Morgan Grenfell Asset
Management, Ltd. ("MGAM"), which is an indirect wholly owned subsidiary of
Deutsche Bank AG, an international commercial and investment banking group. As
of June 30, 1998, MGIS managed approximately $16 billion in assets. Under the
Subadvisory contract, the Adviser, and not the Fund, will pay the Subadviser
0.08% of the average daily net assets of the Total Return Bond Fund.
Administrator
Effective November 1, 1988, Morgan Grenfell Capital Management, Inc. (the
"Administrator"), 150 South Independence Square West, Philadelphia, PA 19106,
serves as the Trust's administrator pursuant to an Administration Agreement
dated August 27, 1998. See "Management of the Funds - Administrator and
Distributor" in the Prospectus and "Investment Advisory and Other Services -
Administrator" in the SAI for a description of the services provided under the
Administration Agreement.
For its services under the Administration Agreement, the Administrator receives
a monthly fee at the following annual rates of the aggregate average daily net
assets of such Fund: 0.12% for the Fixed Income Funds; 0.22% for the Equity
Funds. The Administrator will pay Accounting Agency and Transfer Agency fees out
of the Administration fee. Previously, these fees were charged directly to the
Funds. Net Fund Operating Expenses will remain unchanged since the Adviser has
agreed to reduce its advisory fee and to make arrangements to limit certain
other expenses to the extent necessary to limit Fund Operating Expenses of each
Fund to the specified percentage of each Fund's net assets as demonstrated in
the Expense Information table on page 4 of the prospectus. In its sole
discretion the Adviser may terminate or modify this voluntary agreement at any
time after October 31, 1998.
15
<PAGE>
Custodian
Effective October 13, 1988, Brown Brothers Harriman and Co. (the "Custodian"),
40 Water Street, Boston, MA 02109, serves as the Trust's custodian pursuant to a
Custodian Agreement. See "Investment Advisory and Other Services - Custodian" in
the SAI for a description of the services provided under the Custodian
Agreement.
For the Prospectus:
- -------------------
INVESTMENT OBJECTIVES AND POLICIES
Total Return Bond Fund
The following paragraph replaces in its entirety the second paragraph under
"Investment Objectives and Policies - Total Return Bond Fund" in the Prospectus:
Under normal circumstances, the Fund may invest up to 35% of its total assets in
cash, money market instruments and, subject to the limits described below,
foreign currency-denominated bonds and below investment grade bonds, including
below investment grade bonds of issuers located in countries with emerging
securities markets. The Fund may not invest more than 30% of its total assets in
foreign currency-denominated bonds. At the discretion of the Adviser, the Fund
may use certain techniques, including forward foreign currency exchange
contracts, options and futures on currencies and currency swaps, to manage its
exposure to fluctuations in currency exchange rates and, in some circumstances,
to seek to profit from exchange rate fluctuations.
MANAGEMENT OF THE FUNDS
The following paragraph replaces in its entirety the sixth paragraph under
"Management of the Funds" in the Prospectus relating to the High Yield Bond
Fund:
Mr. Curtiss O. Barrows is a senior vice president with the Adviser and serves as
the portfolio manager of the High Yield Bond Fund. Mr. Barrows has been in the
investment advisory business since 1981.
PURCHASE OF SERVICE SHARES
The following paragraphs replace in their entirety the first two paragraphs
under "Purchase of Service Shares" in the Prospectus:
In order to make an initial investment in service shares of a Fund, an investor
must establish an account with a Service Organization. Each Fund has authorized
Service Organizations, including authorized brokers of the Service
Organizations, to accept purchase and redemption orders on each Fund's behalf.
Brokers are, in turn, authorized to designate other intermediaries to accept
purchase and redemption orders on a Fund's behalf. Alternatively, investors may
invest in service shares by establishing a shareholder account with the Trust
(in addition to the account with their Service Organization). Investors who
invest through their Service Organization may be subject to minimums established
by their Service Organization for initial and subsequent investments. Unless
waived by the Trust, the minimum initial investment for service shares is
$250,000.
Investors who invest through Omnibus Accounts, authorized brokers or their
designated intermediaries should submit purchase orders directly to their
Service Organization, broker or designated intermediary. A Fund will be deemed
to have received a purchase or redemption order when a Service Organization, an
authorized broker or, if applicable, a broker's authorized designee, accepts the
order. Investors who
16
<PAGE>
establish shareholder accounts with the Trust should submit purchase orders to
the Transfer Agent as described below. Service shares of any Fund may be
purchased on any Business Day at the net asset value next determined after
receipt of the order, in good order, by the investor's Service Organization,
broker or designated intermediary, or by the Transfer Agent, as the case may be.
A "Business Day" means any day on which the New York Stock Exchange (the "NYSE")
is open. For an investor who invests through an Omnibus Account or mutual fund
marketplace, the investor's authorized broker or designated intermediary must
receive the investor's purchase order before the close of regular trading on the
NYSE (usually 4:00 p.m., Eastern Time) and promptly forward such order to the
Transfer Agent for the investor to receive that day's net asset value. Service
Organizations, brokers and designated intermediaries are responsible for
promptly forwarding such investors' purchase orders to the Transfer Agent. For
an investor who has a shareholder account with the Trust, the Transfer Agent
must receive the investor's purchase order before the close of regular trading
on the NYSE for the investor to receive that day's net asset value.
REDEMPTION OF SERVICE SHARES
The following paragraph replaces in its entirety, the first paragraph under
"Redemption of Service Shares" in the Prospectus.
Investors who invest through Omnibus Accounts, authorized brokers or their
designated intermediaries should submit redemption orders directly to their
Service Organization, broker or designated intermediary. A Fund will be deemed
to have received a redemption order when a Service Organization, an authorized
broker or, if applicable, a broker's authorized designee, accepts the order.
Investors who establish shareholder accounts with the Trust should submit
redemption orders to the Transfer Agent as described below. Service shares of
any Fund may be redeemed on any Business Day at the net asset value next
determined after receipt of the order, in good order, by the investor's Service
Organization, broker or designated intermediary, or by the Transfer Agent, as
the case may be. A "Business Day" means any day on which the New York Stock
Exchange (the "NYSE") is open. For an investor who invests through an Omnibus
Account or mutual fund marketplace, the investor's authorized broker or
designated intermediary must receive the investor's redemption order before the
close of regular trading on the NYSE (usually 4:00 p.m., Eastern Time) and
promptly forward such order to the Transfer Agent for the investor to receive
that day's net asset value. Service Organizations and authorized brokers and
intermediaries are responsible for promptly forwarding such investors'
redemption orders to the Transfer Agent. For an investor who has a shareholder
account with the Trust, the Transfer Agent must receive the investor's
redemption order before the close of regular trading on the NYSE for the
investor to receive that day's net asset value.
CHANGE OF ADDRESS FOR OVERNIGHT MAIL FOR DST SYSTEMS, INC.
The following address replaces in its entirety the address for overnight mail
for DST Systems, Inc. under "Purchase of Service Shares - Purchases by Mail" and
"Purchase of Service Shares - Purchases by Wire" in the Prospectus:
By Overnight Mail:
- ------------------
Morgan Grenfell Investment Trust
c/o DST Systems, Inc. CT-8 Tower
330 West 9th Street
Kansas City, MO 64105
APPENDIX A
The following replaces in its entirety the section titled "Performance of MGCM
Microcap Composite and Russell 2000" in Appendix A of the Prospectus.
17
<PAGE>
MORGAN GRENFELL INVESTMENT TRUST
Morgan Grenfell Microcap Fund
Performance of MGCM Microcap Composite And Russell 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL TOTAL RETURN
-----------------------------------------------------------------
MGCM Microcap Composite Russell 2000
Year (Net Of Fees)
-----------------------------------------------------------------
<S> <C> <C>
1997 18.80% 22.36%
1996 50.67% 16.49%
1995 54.29% 28.44%
1994 (16.71)% (1.81)%
1993 18.15% 18.89%
1992 3.49% 18.42%
1991 74.37% 46.05%
1990 (2.48)% (19.50)%
1989 24.25% 16.24%
1988 14.13% 24.89%
1987 (4.91)% (8.77)%
-----------------------------------------------------------------
Annualized Total Return 18.47% 13.28%
for Period from
December 31, 1986
to December 31, 1997
</TABLE>
For the SAI:
- ------------
TRUSTEES AND OFFICERS
The following paragraph is hereby deleted from the section titled "Trustees and
Officers" within the Statement of Additional Information:
Martin Hall Vice President Portfolio Manager, Fixed
150 S. Independence Sq. W. Income Team
Philadelphia, PA 19106 MGIS (since 1988)
(age 39)
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
