ALLEGHANY FUNDS
Alleghany/Montag & Caldwell Growth Fund
Alleghany/Chicago Trust Growth & Income Fund
Alleghany/Chicago Trust Talon Fund
Alleghany/Chicago Trust Small Cap Value Fund
Alleghany/Veredus Aggressive Growth Fund
Alleghany/Montag & Caldwell Balanced Fund
Alleghany/Chicago Trust Balanced Fund
Alleghany/Chicago Trust Bond Fund
Alleghany/Chicago Trust Municipal Bond Fund
Alleghany/Chicago Trust Money Market Fund
Supplement to Prospectus
Dated March 1, 1999
This supplement contains new and additional information beyond that contained in
the Prospectus and should be retained and read in conjunction with such
Prospectus.
The following replaces information found on pages 8, 10, 12, 14, and 16 under
the "Investment Objective" sections for the following
Funds:
Alleghany/Chicago Trust Small Cap Value Fund The Fund seeks long-term total
return.
Alleghany/Veredus Aggressive Growth Fund The Fund seeks to provide capital
appreciation.
Alleghany/Montag & Caldwell Balanced Fund The Fund seeks long-term total return.
Alleghany/Chicago Trust Bond Fund
The Fund seeks high current income consistent with prudent risk of capital.
<PAGE>
The following replaces information found on page 20 under the "Fund Expenses -
Example" section:
Example
This hypothetical example shows the operating expenses you would incur as a
shareowner if you invested $10,000 in a fund over the time periods shown,
assuming you reinvested all dividends and distributions and that the average
annual return was 5%. The example assumes that operating expenses remained the
same and includes only contractual fee waivers and reimbursements. The example
is for comparison purposes only and does not represent a fund's actual or future
expenses and returns.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Fund 1 year 3 years 5 years 10 years
------------------------------------------------------ ------------- ---------------- ------------- -------------
Alleghany/Montag & Caldwell Growth Fund $114 $356 $617 $1,363
------------------------------------------------------ ------------- ---------------- ------------- -------------
------------------------------------------------------ ------------- ---------------- ------------- -------------
Alleghany/Chicago Trust Growth & Income Fund 110 343 595 1,317
------------------------------------------------------ ------------- ---------------- ------------- -------------
------------------------------------------------------ ------------- ---------------- ------------- -------------
Alleghany/Chicago Trust Talon Fund 132 446 782 1,733
------------------------------------------------------ ------------- ---------------- ------------- -------------
------------------------------------------------------ ------------- ---------------- ------------- -------------
Alleghany/Chicago Trust Small Cap Value Fund 143 528 N/A N/A
------------------------------------------------------ ------------- ---------------- ------------- -------------
------------------------------------------------------ ------------- ---------------- ------------- -------------
Alleghany/Veredus Aggressive Growth Fund 143 528 N/A N/A
------------------------------------------------------ ------------- ---------------- ------------- -------------
------------------------------------------------------ ------------- ---------------- ------------- -------------
Alleghany/Montag & Caldwell Balanced Fund 120 375 649 1,432
------------------------------------------------------ ------------- ---------------- ------------- -------------
------------------------------------------------------ ------------- ---------------- ------------- -------------
Alleghany/Chicago Trust Balanced Fund 110 343 595 1,317
------------------------------------------------------ ------------- ---------------- ------------- -------------
------------------------------------------------------ ------------- ---------------- ------------- -------------
Alleghany/Chicago Trust Bond Fund 82 290 515 1,163
------------------------------------------------------ ------------- ---------------- ------------- -------------
------------------------------------------------------ ------------- ---------------- ------------- -------------
Alleghany/Chicago Trust Municipal Bond Fund 144 446 771 1,691
------------------------------------------------------ ------------- ---------------- ------------- -------------
------------------------------------------------------ ------------- ---------------- ------------- -------------
Alleghany/Chicago Trust Money Market Fund 53 167 291 653
------------------------------------------------------ ------------- ---------------- ------------- -------------
</TABLE>
The following replaces information about the Portfolio Managers for the
Alleghany/Chicago Trust Talon Fund found under "Management of the Funds - The
Chicago Trust Company" section found on page 26:
<TABLE>
<CAPTION>
<S> <C> <C>
Fund Name Portfolio Manager(s) Investment Experience
- --------------------------------------------- --------------------------------- --------------------------------------------
Alleghany/Chicago Trust Talon Fund Terry D. Diamond Portfolio manager since inception in 1994;
Chairman and Chief Executive Officer of
Talon Asset Management since 1984.
Co-portfolio manager since June 1999; Ms.
Thyra E. Zerhusen Zerhusen joined the investment team of
Talon Asset Management in April 1999. Ms.
Zerhusen has 23 years of investment
management experience; she was previously
a Senior Vice President and Principal at
the Burridge Group, a Senior Investment
Analyst at Sears Investment Management
Company, and Investment Research Officer
at Harris Trust.
</TABLE>
July 14, 1999
