ALLEGHANY FUNDS
Chicago Trust Municipal Bond Fund
Supplement to Prospectus
Dated February 27, 1998
The Board of Trustees approved a change to the investment
policies of the Chicago Trust Municipal Bond Fund to clarify that
the Fund may invest in municipal debt obligations with maturities
of less than three years and more than ten years; provided, that
the Fund maintains an average weighted portfolio maturity of
between three and ten years.
In that regard, the description of the Chicago Trust
Municipal Bond Fund appearing on pages 1 and 5 of the Prospectus
is replaced in its entirety by the following:
Chicago Trust Municipal Bond Fund seeks a high level of
current interest income exempt from Federal income taxes
consistent with the conservation of capital. The Fund seeks to
achieve its objective by investing substantially all of its
assets in a diversified portfolio of municipal debt obligations
with an average weighted portfolio maturity of between three and
ten years.
On page 19 of the Prospectus the first paragraph under
CHICAGO TRUST MUNICIPAL BOND FUND is revised to read as follows:
Chicago Trust Municipal Bond Fund seeks a high level of
current interest income exempt from Federal income taxes
consistent with the conservation of capital. The Fund will seek
to achieve its objective by investing substantially all of its
assets in a diversified portfolio of municipal debt obligations
issued by or on behalf of states, territories and possessions of
the United States and the District of Columbia and their
political subdivisions, agencies and instrumentalities, or multi-
state agencies or authorities, the interest from which is exempt
from Federal income taxes. It is a fundamental policy of the
Fund that, under normal market conditions, at least 80% of its
total assets will be invested in municipal securities. The Fund
is expected to maintain an average weighted portfolio maturity of
between three and ten years under normal market conditions. In
maintaining this stated average maturity, the Fund may hold debt
obligations with maturities greater than ten years or less than
three years.
July 6, 1998
ALLEGHANY FUNDS
Montag & Caldwell Growth Fund
(Class I Shares)
Supplement to Prospectus
Dated February 27, 1998
The following information replaces (effective as of July 6,
1998) the disclosure found in the Prospectus for the Fund:
Prospectus Summary
"How to Purchase Shares"
The following language replaces the paragraph found on
page 3 of the Prospectus:
The minimum initial investment for Class I shares is
$5 million. For purposes of this minimum, the accounts of
a financial consultants clients may be aggregated in
determining whether the $5 million minimum has been met.
In addition, aggregation may be applied to the accounts of
immediate family members as well as to the related accounts
of a corporation or other legal entity. The Fund may also
waive the minimum initial investment for investors who have
signed a letter of intent.
Class I shares of the Fund do not impose any sales
load, redemption or exchange fees or have a Distribution
Plan pursuant to Rule 12b-1 ("12b-1 Plan") under the
Investment Company Act of 1940, as amended (the "1940
Act"). The public offering price is the net asset value
per share next determined after receipt of a purchase order
in proper form. See "PURCHASE OF SHARES."
The following language replaces the first paragraph of
"PURCHASE OF SHARES In General" on page 17 of the
Prospectus:
Shares of the Fund may be purchased directly from the
Fund at the net asset value next determined after receipt
of the order in proper form. The minimum initial
investment is $5 million; there is no minimum subsequent
investment. For purposes of the investment minimum, the
balances of Fund accounts of clients of a financial
consultant may be aggregated in determining whether the $5
million minimum investment has been met. This aggregation
may also be applied to the accounts of immediate family
members (i.e., a person's spouse, parents, children,
siblings and in-laws). In addition, the aggregation may be
applied to the related accounts of a corporation or other
legal entity. The Fund may waive the minimum initial
investment by obtaining a letter of intent, evidencing an
investors intention of meeting the minimum initial
investment in a specified period of time as continually
reviewed and approved by the Board. The minimum initial
investment is waived for Trustees of the Trust and
employees of the Investment Advisor and its affiliates.
There is no sales load or charge in connection with the
purchase of shares. The Company reserves the right to
reject any purchase order and to suspend the offering of
shares of the Fund. The Fund also reserves the right to
change the initial and subsequent investment minimums.
July 6, 1998
July 6, 1998
VIA EDGAR
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, N.W.
Washington, DC 20549
Attention: Office of Filings, Information & Consumer Services
Re: Alleghany Funds (the "Company")
File Nos. 33-68666 and 811-8004
Dear Staff Member:
Pursuant to Rule 497(e) under the Securities Act of 1933, as amended,
please accept for filing on behalf of the above-referenced Company two
supplements each dated July 6, 1998 to the Companys Prospectus dated
February 27, 1998 with respect to the Chicago Trust Municipal
Bond Fund and the Companys Class I Shares Prospectus dated
February 27, 1998 with respect to Montag & Caldwell Growth Fund.
Kindly acknowledge receipt of this transmission through an
acknowledgment via Compuserve mailbox number 74313,402.
Very truly yours,
LAURIE E. BUCKLEY
Laurie E. Buckley
Senior Paralegal
