ALLEGHANY FUNDS, 485APOS, 2000-12-29

ALLEGHANY FUNDS
485APOS, 2000-12-29

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As filed with the Securities and Exchange Commission on December 22, 2000

Securities Act File No. 33-68666
Investment Company Act File No. 811-8004

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
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Pre-Effective Amendment No.
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Post-Effective Amendment No. 24 X
-- ------

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 26 X
-- ------

ALLEGHANY FUNDS
(Exact Name of Registrant as Specified in Charter)

171 North Clark Street
Chicago, Illinois 60601
(Address of Principal Executive Offices)

Registrant's Telephone Number, including Area Code: (312) 223-2139

Name and Address of Agent for Service: Copies to:
Kenneth C. Anderson, President Cathy G. O'Kelly, Esq.
Alleghany Funds Vedder, Price, Kaufman & Kammholz
171 North Clark Street 222 North LaSalle Street
Chicago, Illinois 60601 Chicago, Illinois 60601

It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b); or
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on ________ pursuant to paragraph (b); or
--------
60 days after filing pursuant to paragraph (a)(1); or
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on ________ pursuant to paragraph (a)(1); or
--------
75 days after filing pursuant to paragraph (a)(2); or
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X on March 1, 2001 pursuant to paragraph (a)(2) of Rule 485
--------

ALLEGHANY FUNDS

Class N Shares Class I Shares

Alleghany/Montag & Caldwell Growth Fund Montag & Caldwell Growth Fund
Alleghany/Chicago Trust Growth & Income Fund Alleghany/Chicago Trust Growth & Income Fund
Alleghany/TAMRO Large Cap Value Fund Alleghany/Blairlogie International Developed Fund
Alleghany/Chicago Trust Talon Fund Alleghany/Blairlogie Emerging Markets Fund
Alleghany/Veredus Aggressive Growth Fund Montag & Caldwell Balanced Fund
Alleghany/Chicago Trust Small Cap Value Fund Alleghany/Chicago Trust Bond Fund
Alleghany/TAMRO Small Cap Fund
Alleghany/Veredus SciTech Fund
Alleghany/Blairlogie International Developed Fund
Alleghany/Blairlogie Emerging Markets 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

</TABLE>

[ALLEGHANY FUNDS LOGO]

CLASS I SHARES
Prospectus
ALLEGHANY FUNDS

Montag & Caldwell Growth Fund
Alleghany/Chicago Trust Growth & Income Fund
Alleghany/Blairlogie International Developed
Fund
Alleghany/Blairlogie Emerging Markets Fund
Montag & Caldwell Balanced Fund
Alleghany/Chicago Trust Bond Fund

March 1, 2001

The Securities and Exchange Commission has not approved or disapproved these or
any mutual fund's shares
or determined if this prospectus is accurate or complete. Any representation to
the contrary is a crime.

[ALLEGHANY FUNDS LOGO]
Thank you for your interest in Alleghany Funds. Alleghany Funds offer investors
a variety of investment opportunities. This prospectus pertains only to Class I
shares of Montag & Caldwell Growth Fund, Alleghany/Chicago Trust Growth & Income
Fund, Alleghany/Blairlogie International Developed Fund, Alleghany/Blairlogie
Emerging Markets Fund, Montag & Caldwell Balanced Fund and Alleghany/Chicago
Trust Bond Fund, members of the Alleghany Funds Family.
For a list of terms with definitions that you may find helpful as you read this
prospectus, please refer to the "Investment Terms" section.
------------------------------
Mutual fund shares are not bank deposits and are not guaranteed, endorsed or
insured by any financial institution, government entity or the Federal Deposit
Insurance Corporation (FDIC).
------------------------------

TABLE OF CONTENTS

Page

Categories of Alleghany Funds 3
Fund Summaries
Investment Objectives, Principal Investment
Strategies and Risks
EQUITY FUNDS
Montag & Caldwell Growth Fund 4
Alleghany/Chicago Trust Growth & Income
Fund 5
INTERNATIONAL EQUITY FUNDS
Alleghany/Blairlogie International
Developed Fund 6
Alleghany/Blairlogie Emerging Markets
Fund 8
BALANCED FUND
Montag & Caldwell Balanced Fund 10
FIXED INCOME FUND
Alleghany/Chicago Trust Bond Fund 12
FUND EXPENSES 14

Investment Terms 15
More About Alleghany Funds
RISK SUMMARY 17
OTHER INVESTMENT STRATEGIES 18
Management of the Funds
THE ADVISERS
The Chicago Trust Company 20
Montag & Caldwell, Inc. 21
Blairlogie Capital Management 21
Shareholder Information
OPENING AN ACCOUNT: BUYING SHARES 22
EXCHANGING SHARES 23
SELLING/REDEEMING SHARES 24
TRANSACTION POLICIES 27
ACCOUNT POLICIES AND DIVIDENDS 28
ADDITIONAL INVESTOR SERVICES 29
PORTFOLIO TRANSACTIONS AND BROKERAGE
COMMISSIONS 29

Dividends, Distributions and Taxes 30

Financial Highlights 31

General Information Back
Cover

Categories of Alleghany Funds

Alleghany Funds is a no-load, open-end management investment company which
consists of fifteen separate diversified investment portfolios, including
equity, balanced, fixed income and money market funds.

EQUITY FUNDS
Equity funds invest principally in stocks and other equity securities. Equity
funds have greater growth potential than many other funds, but they also have
greater risk.

Who May Want to Invest in Equity Funds
Equity funds may be appropriate if you:
- have a long-term investment goal (five years or more)
- can accept higher short-term risk in return for higher long-term return
potential
- want to diversify your investments

Equity funds may not be appropriate if you want:
- a stable share price
- a short-term investment
- regular income

BALANCED FUNDS
Balanced funds invest in a mix of stocks and fixed income securities and combine
the benefits of both types of securities - capital appreciation or growth from
stocks and income from fixed income securities. Like most other mutual funds,
the share price of a balanced fund moves up and down in response to changes in
the stock market and interest rates.

Who May Want to Invest in Balanced Funds
Balanced funds may be appropriate if you want:
- capital appreciation and current income
- balanced diversified investment

FIXED INCOME FUNDS
Fixed income funds invest in corporate and government bonds and other fixed
income securities. These funds provide regular income; municipal bond funds
provide federally tax-exempt income. The obligations are generally secured by
the assets of the issuer.

Who May Want to Invest in Fixed Income Funds
Fixed income funds may be appropriate if you want:
- regular income
- less volatility than equity funds
- portfolio diversification

Fixed income funds may not be appropriate if you want:
- capital appreciation

No single fund is intended to be a complete investment program, but individual
funds can be an important part of a balanced and diversified investment program.
Mutual funds have the following general risks:
- the value of fund shares will fluctuate
- you could lose money
- you cannot be certain that a fund will achieve its investment objective

EQUITY FUNDS: Large Cap

Montag & Caldwell Growth Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term capital appreciation and, secondarily, current income,
by investing primarily in common stocks and convertible securities.

PRINCIPAL INVESTMENT STRATEGIES
The Fund invests primarily in common stocks and convertible securities. The
portfolio manager uses a bottom-up approach to stock selection and seeks high
quality, well-established large-cap companies that:
- have a strong history of earnings growth
- are attractively priced, relative to the company's potential for above average
long-term earnings and revenue growth
- have strong balance sheets
- have a sustainable competitive advantage
- are currently, or have the potential to become, industry leaders
- have the potential to outperform during market downturns

Growth stock risk: Growth investing involves buying stocks that have relatively
high price-to-earnings ratios and are expected to continue to experience strong
earnings growth. Growth stocks may be more volatile than other stocks because
they are generally more sensitive to investor perceptions and market moves.
Growth stocks may lack the dividends of value stocks that protect stock prices
in a falling market. During periods of growth stock underperformance, a fund's
performance may suffer.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

See page 17 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

FUND PERFORMANCE
The bar chart shows how the Fund's performance
has varied from year to year over the periods
shown. This information may help illustrate the
risks of investing in the Fund. As with all
mutual funds, past performance does not
guarantee future performance.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1997 32.17
1998 32.26
1999 22.90

Best quarter: 12/98 27.08%
Worst quarter: 9/98 -14.24%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of the S&P 500,
the Lipper Large-Cap Growth Index and the
Lipper Large-Cap Core Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Montag & Lipper Lipper
Caldwell Large-Cap Large-Cap
Growth S&P 500 Growth Core
Fund Index Index Index
--------------------------------------------------------

1 year
--------------------------------------------------------

Since
Inception(1)
--------------------------------------------------------

(1)Fund's Inception: June 28, 1996

EQUITY FUNDS: Large Cap

Alleghany/Chicago Trust Growth & Income Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term total return through a combination of capital
appreciation and current income by investing primarily in a combination of
stocks and bonds.

Principal Investment Strategies

The portfolio manager uses a bottom-up approach and invests in a combination of
securities that offer potential for growth and/or income, including primarily
large-cap dividend and non-dividend paying common stocks, preferred stocks and
convertible securities. Companies for possible selection must pass an initial
capitalization screen. The portfolio manager then identifies stocks of companies
with the following characteristics compared to S&P 500 Index averages:
- higher sales and operating earnings growth
- more stable earnings growth rates
- lower debt-to-capital ratio
- higher return on equity
- market capitalization over $1 billion

The portfolio manager also considers the quality of company management and the
strength of the company's position among its competitors. In addition, the
portfolio manager assesses the long-term economic outlook and the risk/return of
securities in allocating investments among industry sectors.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

See page 17 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

FUND PERFORMANCE
Class I shares of the Fund commenced operations
on July 31, 2000 and do not have any
significant performance history. Performance
information will be included in the Fund's next
annual or semi-annual report.

EQUITY FUNDS: International

Alleghany/Blairlogie International Developed Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term growth of capital.

PRINCIPAL INVESTMENT STRATEGIES
The Fund invests primarily in a diversified portfolio of international equity
securities of developed markets. In selecting securities, the portfolio manager
combines top-down country selection with bottom-up stock selection to attempt to
maximize returns while controlling risk. In choosing countries, the portfolio
manager uses a model that evaluates five key criteria:
- macroeconomics
- monetary issues
- earnings momentum
- market valuation
- technical performance

In choosing stocks, the portfolio manager considers such factors as:
- strong balance sheets
- history of earnings growth
- performance within a stock/company's industry
- attractive price-to-earnings value and price-to-book value

The portfolio may include securities that ultimately comprise the MSCI EAFE
Index, but it is not limited to those securities or their weightings in the
Index.

If practicable, the portfolio manager also considers the company's environmental
business practices based on the availability of such information.

Liquidity risk: When there is no willing buyer and investments cannot be readily
sold at the desired time or price, a fund may have to accept a low price or may
not be able to sell the security at all. An inability to sell securities can
adversely affect a fund's value or prevent a fund from being able to take
advantage of other investment opportunities.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

EQUITY FUNDS: International

Alleghany/Blairlogie International Developed Fund (continued)

Investing in the securities of foreign issuers involves special risks and
considerations not typically associated with investing in U.S. companies. The
following additional risks apply to the Fund.

Foreign securities risk: The securities of foreign companies may be less liquid
and may fluctuate more widely than those traded in U.S. markets. Foreign
companies and markets may also have less governmental supervision. There may be
difficulty in enforcing contractual obligations and little public information
about the companies. Trades typically take more time to settle and clear, and
the cost of buying and selling foreign securities is generally higher than U.S.
traded securities. Specific risks may include:

- Currency risk: The value of the securities held by a fund may be affected
by changes in exchange rates or control regulations. If a local currency
gains against the U.S. dollar, the value of the holding increases in U.S.
dollar terms. If a local currency declines against the U.S. dollar, the
value of the holding decreases in U.S. dollar terms.

- Political/economic risk: Changes in economic, tax or foreign investment
policies, governmental instability or other political, governmental or
economic actions can adversely affect the value of the securities in a
fund.

- Regulatory risk: In developed foreign countries, typically there are
little or no uniform accounting, auditing and financial reporting
standards and other regulatory practices and requirements are generally
different from those of U.S. companies.
See page 17 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.
FUND PERFORMANCE
The bar chart shows how the Fund's performance
has varied from year to year over the periods
shown. This information may help illustrate the
risks of investing in the Fund. As with all
mutual funds, past performance does not
guarantee future performance.

Calendar Year Total Return*

[BAR GRAPH]

Total Return
------------

1994 7.05
1995 17.13
1996 5.83
1997 1.92
1998 23.92
1999 21.13

Best quarter: 3/98 18.96%
Worst quarter: 9/98 -15.85%

*For 1994-1998, the performance figures
reflected are those of a predecessor fund,
PIMCO International Developed Fund.

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of the MSCI
EAFE Index and the Lipper International Fund
Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/
Blairlogie Lipper
International MSCI EAFE International
Developed Fund Index Fund Index
----------------------------------------------------------------

1 year
----------------------------------------------------------------

5 years
----------------------------------------------------------------

Since
Inception(1)
----------------------------------------------------------------

(1)Fund's inception: June 8, 1993

EQUITY FUNDS: International

Alleghany/Blairlogie Emerging Markets Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term growth of capital.

PRINCIPAL INVESTMENT STRATEGIES
The Fund invests primarily in common stocks of companies located in countries
identified as emerging markets countries. In selecting securities, the portfolio
manager combines top-down country selection with bottom-up stock selection to
attempt to maximize returns while controlling risk. In choosing countries, the
portfolio manager uses a model that evaluates five key criteria:
- macroeconomics
- monetary issues
- earnings momentum
- market valuation
- technical performance

The Fund invests primarily but not exclusively in some or all of the following
emerging market countries:

Argentina Greece Jordan Poland Taiwan
Brazil Hong Kong Malaysia Romania Thailand
Chile Hungary Mexico Russia Turkey
China India Pakistan South Africa Venezuela
Colombia Indonesia Peru South Korea Zimbabwe
Czech Republic Israel Philippines Sri Lanka

If practicable, the portfolio manager also considers the company's environmental
business practices based on the availability of such information.

Value stock risk: Value investing involves buying stocks that are out of favor
and/or undervalued in comparison to their peers or their prospects for growth.
Typically, their valuation levels are lower than growth stocks. The market value
of these stocks tends to be more volatile than large-cap company stocks. They
generally offer greater potential for gain as well as for loss. Because
different types of stocks go out of favor with investors depending on market and
economic conditions, a fund's return may be adversely affected during market
downturns and when value stocks are out of favor.

EQUITY FUNDS: International

Alleghany/Blairlogie Emerging Markets Fund (continued)

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

Investing in the securities of foreign issuers, and particularly emerging market
issuers, involves special risks and considerations not typically associated with
investing in U.S. companies. Investing in countries that are considered emerging
markets poses additional risks. The following additional risks apply to the
Fund.

- Regulatory risk: In foreign countries, typically there are little or no
uniform accounting, auditing or financial reporting standards or other
regulatory practices and requirements that are common with U.S.
companies.
Emerging markets risk: Emerging market countries typically have economic
structures that are less diverse and mature than those of developed countries.
Their political systems may be less stable, and they may have less developed
legal systems. National policies may restrict foreign investments. The small
size of the securities market can make investments illiquid. The value of the
investments may fluctuate more widely than in developed countries. Special
custody arrangements may also be needed.

See page 17 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return*

[BAR GRAPH]

Total Return
------------

1994 -7.78
1995 -12.54
1996 4.82
1997 -2.01
1998 -27.39
1999 60.02

*For 1994-1998, the performance figures
reflected are those of a predecessor fund,
PIMCO Emerging Markets Fund.

Best quarter: 12/93 33.62%
Worst quarter: 9/98 -25.25%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of the MSCI
Emerging Markets Free Index and the Lipper
Emerging Markets Fund Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/ MSCI Lipper
Blairlogie Emerging Emerging
Emerging Markets Markets
Markets Fund Free Index Fund Index
------------------------------------------------------------

1 year
------------------------------------------------------------

5 years
------------------------------------------------------------

Since
Inception(1)
------------------------------------------------------------

(1)Fund's inception: June 1, 1993

BALANCED FUND

Montag & Caldwell Balanced Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term total return.

PRINCIPAL INVESTMENT STRATEGIES
The Fund invests primarily in a combination of equity, fixed income and short-
term securities.

Generally, between 50% and 70% of the Fund's total assets will be invested in
equity securities, and at least 25% will be invested in fixed income securities
to provide a stable flow of income. The portfolio allocation will vary based
upon the portfolio manager's assessment of the return potential of each asset
class. For equity investments, the portfolio manager uses a bottom-up approach
to stock selection, focusing on high quality, well-established companies that:
- have a strong history of earnings growth
- are attractively priced, relative to the company's potential for above average
long-term earnings and revenue growth
- have strong balance sheets
- have a sustainable competitive advantage
- are currently, or have the potential to become, industry leaders
- have the potential to outperform during market downturns

When selecting fixed income securities, the portfolio manager strives to
maximize total return and minimize risk primarily by adjusting the portfolio's
duration and sector weightings. The portfolio manager will seek to maintain the
Fund's weighted average duration within 20% of the duration of the Lehman
Brothers Government Corporate Index. Emphasis is also placed on diversification
and credit analysis.

The Fund will invest only in fixed income securities with an "A" or better
rating. Investments will include:
- U.S. Government securities
- corporate bonds
- mortgage/asset-backed securities
- money market securities and repurchase agreements

BALANCED FUND

Montag & Caldwell Balanced Fund (continued)

Interest rate risk: If interest rates rise, bond prices will fall. The longer
the maturity of a bond, the more sensitive a bond's price will be to changes in
interest rates. In other words, a long-term bond (30-year) will have greater
price sensitivity than a short-term bond (2-year). Short-term and long-term bond
prices and interest rates do not typically move the same amount or for the same
reasons.

Credit risk: Credit risk (also called default risk) is the risk that the issuer
of a security will not be able to make principal and interest payments on a bond
issue.

Issuer risk: The price of a bond is affected by the issuer's credit quality.
Changes in an issuer's financial condition and general economic conditions can
affect an issuer's credit quality. Lower quality bonds are generally more
sensitive to these changes than higher quality bonds.
Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock or bond market or its peers. Also, a fund could fail to
meet its investment objective.

See page 17 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

FUND PERFORMANCE
The bar chart shows the Fund's performance for
the period shown. This information may help
illustrate the risks of investing in the Fund.
As with all mutual funds, past performance does
not guarantee future performance.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1999 13.10

Best quarter: 12/99 10.80%
Worst quarter: 9/99 -2.99%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of 60% S&P 500
Index/40% Lehman Brothers Government Corporate
Index and the Lipper Balanced Fund Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

60% S&P 500
Index/40%
Lehman Brothers
Montag & Government Lipper
Caldwell Corporate Balanced
Balanced Fund Index Fund Index
--------------------------------------------------------------

1 year
--------------------------------------------------------------

Since
Inception(1)
--------------------------------------------------------------

(1)Fund's Inception: December 31, 1998

FIXED INCOME FUND

Alleghany/Chicago Trust Bond Fund

INVESTMENT OBJECTIVE
The Fund seeks high current income consistent with prudent risk of capital.

PRINCIPAL INVESTMENT STRATEGIES
The Fund invests primarily in a broad range of intermediate-term investment-
grade fixed income securities. The portfolio manager uses a combination of
quantitative and fundamental research, including risk/reward and credit risk
analysis, in choosing securities. The dollar-weighted average maturity of the
bonds in the Fund is normally between three and ten years. Investments may
include:
- U.S. Government securities
- corporate bonds
- debentures and convertible debentures
- zero-coupon bonds
- mortgage/asset-backed securities
- Yankee bonds

PRINCIPAL RISKS OF INVESTING IN THIS FUND
Interest rate risk: If interest rates rise, bond prices will fall. The longer
the maturity of a bond, the more sensitive a bond's price will be to changes in
interest rates. In other words, a long-term bond (30-year) will have greater
price sensitivity than a short-term bond (2-year). Short-term and long-term bond
prices and interest rates do not typically move the same amount or for the same
reasons.

Credit risk: Credit risk (also called default risk) is the risk that the issuer
of a security will not be able to make principal and interest payments on a bond
issue.

Below investment-grade securities risk: Bonds and other fixed income securities
are rated by the national ratings agencies. These ratings generally assess the
ability of the issuer to pay principal and interest. There are several
categories of investment grade securities, and those rated in the lower
categories are more risky than those rated in the higher categories.

Prepayment risk: Mortgage-backed securities carry prepayment risks. Prices and
yields of mortgage-backed securities assume that the underlying mortgages will
be paid off according to a preset schedule. If the underlying mortgages are paid
off early, such as when homeowners refinance as interest rates decline, the fund
may be forced to reinvest the proceeds in lower yield, higher priced securities.
This may reduce a fund's total return.

FIXED INCOME FUND

Alleghany/Chicago Trust Bond Fund (continued)

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the bond market or its peers. Also, a fund could fail to meet its
investment objective.

See page 17 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Fund Expenses

As an investor in the Funds, you pay certain indirect fees and expenses, which
are described in the table below.

Shareholder Fees
As a benefit of investing with Alleghany Funds, you do not incur any sales loads
and generally no exchange fees or redemption fees. However, a redemption fee of
2% is charged when you redeem shares of Alleghany/Blairlogie International
Developed Fund or Alleghany/Blairlogie Emerging Markets Fund within 90 days of
purchase.

Also, if you redeem shares by wire, $20 will be deducted from the amount
redeemed.

Annual Fund Operating Expenses
Operating expenses are the normal costs of operating any mutual fund. These
expenses are not charged directly to investors. They are paid from a fund's
assets and are expressed as an expense ratio, which is a percentage of average
net assets.

Total Net
Management Other Expense Fee Expense
Fund(2) Fees Expenses Ratio Waivers Ratio

Montag & Caldwell Growth Fund 0.67% 0.09% 0.76% -- 0.76%
Alleghany/Chicago Trust Growth & Income Fund 0.70 0.15 0.85 -- 0.85(1)
Alleghany/Blairlogie International Developed Fund 0.85 0.31 1.16 (0.06) 1.10(1)
Alleghany/Blairlogie Emerging Markets Fund 0.85 0.97 1.82 (0.47) 1.35(1)
Montag & Caldwell Balanced Fund 0.75 0.16 0.91 -- 0.91
Alleghany/Chicago Trust Bond Fund 0.49 0.13 0.68 (0.19) 0.49(1)

</TABLE>

(1)The above table reflects a continuation of the Advisers' contractual
undertakings to waive management fees and/or reimburse expenses exceeding the
limits shown. The ratios shown above reflect the expenses incurred during the
fiscal year ended October 31, 2000, except for Alleghany/ Chicago Trust Growth &
Income Fund and Alleghany/Chicago Trust Bond Fund, which are estimated. The
Advisers are contractually obligated to reimburse expenses for one year at the
rates shown in the table.

(2)The Funds each offer two classes of shares that invest in the same portfolio
of securities. Shareholders of Class I shares are not subject to a 12b-1
distribution plan; therefore, expenses and performance figures will vary between
the classes. The information set forth in the table above and the example below
relate only to Class I shares, which are offered in this prospectus. Class N
shares are offered in a separate prospectus.

Example
This hypothetical example shows the operating expenses you would incur as a
shareholder if you invested $10,000 in a Fund over the time periods shown and
you redeem all your shares at the end of the period. The example assumes you
reinvested all dividends and distributions, that the average annual return was
5% and that operating expenses remained the same. The example is for comparison
purposes only and does not represent a fund's actual or future expenses and
returns.

Fund 1 year 3 years 5 years 10 years

Montag & Caldwell Growth Fund $ 78 $243 $422 $ 942
Alleghany/Chicago Trust Growth & Income Fund 87 271 n/a n/a
Alleghany/Blairlogie International Developed Fund 112 363 633 1,404
Alleghany/Blairlogie Emerging Markets Fund 137 527 941 2,099
Montag & Caldwell Balanced Fund 93 290 504 1,120
Alleghany/Chicago Trust Bond Fund 50 198 n/a n/a

</TABLE>

Investment Terms

The following is a list of terms with definitions that you may find helpful as
you read this prospectus.

Asset-backed securities. Securities that represent a participation in, or are
secured by and payable from, payments generated by credit cards, motor vehicle
or trade receivables and the like.

Bottom-up investing. An investing approach in which securities are researched
and chosen individually with less consideration given to economic or market
cycles.

Corporate bonds. Fixed income securities issued by corporations.

Debentures. Bonds or promissory notes that are secured by the general credit of
the issuer, but not secured by specific assets of the issuer.

Developed markets. Countries that are considered to have a high level of overall
economic and securities market development as well as stable financial and
political policies. Developed countries generally include the United States,
Japan and Western Europe.

Diversification. The practice of investing in a broad range of securities to
reduce risk.

Duration. A calculation of the average life of a bond (or portfolio of bonds)
that is a useful measure of a bond's price sensitivity to interest changes. The
higher the duration number, the greater the risk and reward potential of the
bond.

Emerging markets. Countries whose economy and securities markets are considered
by the World Bank to be emerging or developing. Emerging market countries may be
located in such regions as Asia, Latin America, the Middle East, Southern
Europe, Eastern Europe and Africa.

Equity securities. Equity securities include common stocks and preferred stocks
and other securities convertible into common stock.

Expense ratio. A fund's cost of doing business, expressed as a percentage of its
assets and disclosed in a prospectus.

Fixed income securities. Bonds and other securities that are used by issuers to
borrow money from investors. Typically, the issuer pays the investor a fixed,
variable or floating rate of interest and must repay the borrowed amount at a
specified time in the future (maturity).

Investment objective. The goal that an investor and a mutual fund seek together.
Examples include current income, long-term capital growth, etc.

Issuer. The company, municipality or government agency that issues a security,
such as a stock, bond or money market security.

Large-cap stocks. Stocks that are issued by large companies. Alleghany Funds
defines a large-cap company as one with a market capitalization of $5 billion or
more. Typically, large-cap companies are established, well-known companies; some
may be multinationals.

Lehman Brothers Government Corporate Index. An unmanaged index that includes
U.S. Government and investment-grade corporate securities with at least one year
to maturity.

Management fee. The amount that a mutual fund pays to the investment adviser for
its services.

Money market securities. Short-term fixed income securities of federal and local
governments, banks and corporations.

MSCI EAFE Index. The Morgan Stanley Capital International Europe, Australasia,
Far East Index, a market-weighted aggregate of 20 individual country
indices/indexes that collectively represent many of the major world markets,
excluding the U.S. and Canada.

MSCI Emerging Markets Free Index. The Morgan Stanley Capital International
Emerging Markets Free Index, a market-capitalization weighted index composed of
26 of the world's developing markets.

Mortgage-backed securities. Securities backed by the Government National
Mortgage Association (Ginnie Mae), the Federal National Mortgage Association
(Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac). These
securities represent collections (pools) of commercial and residential
mortgages.

Mutual fund. An investment company that stands ready to buy back its shares at
their current net asset value, which is the total market value of the fund's
investment portfolio divided by the number of its shares outstanding. Most
mutual funds continuously offer new shares to investors.

Net asset value (NAV). The per share value of a mutual fund, found by
subtracting the fund's liabilities from its assets and dividing the number of
shares outstanding. Mutual funds calculate their NAVs at least once a day.

No-load fund. A mutual fund whose shares are sold without a sales charge and
without a 12b-1 fee of more than 0.25% per year.

Repurchase agreements (repos). Transactions in which a security (usually a
government security) is purchased with a simultaneous commitment to sell it back
to the seller (a commercial bank or recognized securities dealer) at an agreed
upon price on an agreed upon date, usually the next day.

Investment Terms (continued)

Risk/reward trade-off. The principle that an investment must offer higher
potential returns as compensation for the likelihood of increased volatility.

Standard & Poor's (S&P) 500 Index. An unmanaged index of 500 widely traded
industrial, transportation, financial and public utility stocks.

Total return. A measure of a fund's performance that encompasses all elements of
return: dividends, capital gains distributions and changes in net asset value.
Total return is the change in value of an investment over a given period,
assuming reinvestment of dividends and capital gains distributions, expressed as
a percentage of the initial investment.

U.S. Government securities. Fixed income obligations of the U.S. Government and
its various agencies. U.S. Government securities issued by the Treasury (bills,
notes and bonds) are backed by the full faith and credit of the federal
government. Some government securities not issued by the U.S. Treasury also
carry the government's full faith and credit backing on principal or interest
payments. Some securities are backed by the issuer's right to borrow from the
U.S. Treasury and some are backed only by the credit of the issuing
organization. All government securities are considered highly creditworthy.

Yield. A measure of net income (dividends and interest) earned by the securities
in the fund's portfolio, less the fund's expenses, during a specified period. A
fund's yield is expressed as a percentage of the maximum offering price per
share on a specified date.

More About Alleghany Funds

RISK SUMMARY
The following chart compares the principal risks of investing in each Alleghany
Fund.

Below Credit Emerging Foreign Growth Interest Issuer Liquidity
Investment Markets Securities Stock Rate
Securities

Montag & Caldwell Growth Fund X
Alleghany/Chicago Trust Growth & Income Fund X
Alleghany/Blairlogie International Developed Fund X X
Alleghany/Blairlogie Emerging Markets Fund X X X
Montag & Caldwell Balanced Fund X X X X
Alleghany/Chicago Trust Bond Fund X X X X X

Manager Market Mid- Municipal
Cap Securities
Company

Montag & Caldwell Growth Fund X X
Alleghany/Chicago Trust Growth & Income Fund X X
Alleghany/Blairlogie International Developed Fund X X
Alleghany/Blairlogie Emerging Markets Fund X X X
Montag & Caldwell Balanced Fund X X
Alleghany/Chicago Trust Bond Fund X X

</TABLE>

ADDITIONAL RISKS
Defensive Strategy Risk
There may be times when a fund takes temporary positions that may not achieve
its investment objective or follow its principal investment strategies for
defensive reasons. This includes investing all or a portion of its total assets
in cash or cash equivalents, such as money market securities and repurchase
agreements. Although a fund would do this in seeking to avoid losses, following
a defensive strategy could reduce the benefit from any market upswings.

More About Alleghany Funds (continued)

OTHER INVESTMENT STRATEGIES
In addition to the primary investment strategies described in our Fund
summaries, there may be times when the Funds use secondary investment strategies
in seeking to achieve investment objectives. These strategies may involve
additional risks and apply to each Fund unless otherwise indicated.

ADRs/EDRs
The Funds may invest in foreign securities in the form of depositary receipts.
Depositary receipts represent ownership of securities in foreign companies and
are held in banks and trust companies. They can include American Depositary
Receipts (ADRs), which are traded on U.S. exchanges and are U.S. dollar-
denominated, and European Depositary Receipts (EDRs), which are traded on
European exchanges and may not be denominated in the same currency as the
security they represent. The funds have no intention of investing in unsponsored
ADRs or EDRs.

Although ADRs and EDRs do not eliminate the risks inherent in investing in the
securities of foreign issuers, which include market, political, currency and
regulatory risk, by investing in ADRs or EDRs rather than directly in stock of
foreign issuers, a Fund may avoid currency risks during the settlement period
for purchases or sales. In general, there is a large, liquid market in the
United States for many ADRs. The information available for ADRs is subject to
the accounting, auditing and financial reporting standards of the domestic
market or exchange on which they are traded, in which standards are more uniform
and more exacting than those to which many foreign issuers may be subject.

Collateralized Mortgage Obligations (CMOs)
CMOs are fixed income securities secured by mortgage loans and other
mortgage-backed securities and are generally considered to be derivatives. CMOs
carry general fixed income securities risks and risks associated with
mortgage-backed securities.

Commercial Paper
Commercial paper are short-term fixed income securities issued by banks,
corporations and other borrowers. There is the risk that the issuer of the
commercial paper will not be able to make principal and/or interest payments.

Convertible Securities
Convertible securities are fixed income or equity securities that pay interest
or dividends and that may be exchanged on certain terms into common stock of the
same corporation.

Because of the conversion feature, the market value of convertible securities
tends to move together with the market value of the underlying stock. The value
of convertible securities is also affected by prevailing interest rates, the
credit quality of the issuer and any call provisions. There is the risk that the
issuer of the security will not be able to make principal and/or interest
payments as well as the holder of the security to not take advantage of the
convertible features in the appropriate time frame.

Debentures
Debentures are bonds or promissory notes that are secured by the general credit
of the issuer, but not secured by specific assets of the issuer. There is the
risk that the issuer of the security will not be able to make principal and/or
interest payments.

Derivatives
The Funds may invest in derivatives to limit risk in a portfolio enhance
investment return. Derivatives have a return tied to a formula based upon an
interest rate, index, price of a security, or other measurement. Derivatives
include options, futures, forward contracts and related products.

Hedging involves using derivatives to hedge against an opposite position that a
fund holds. Any loss generated by the derivative should be offset by gains in
the hedged investment. While hedging can reduce or eliminate losses, it can also
reduce or eliminate gains. Using derivatives for purposes other than hedging is
speculative. A Fund may realize a loss if interest rates, security prices or
indices move in the opposite direction that the portfolio manager anticipates.

Fixed Income Securities
Montag & Caldwell Growth Fund and Alleghany/Chicago Trust Growth & Income Fund
may invest in fixed income securities to offset the volatility of the stock
market. Fixed income securities provide a stable flow of income for a fund.

Preferred Stocks
Preferred stocks are stocks that pay dividends at a specified rate. Dividends
are paid on preferred stocks before they are paid on common stocks. In addition,
preferred stockholders have priority over common stockholders as to the proceeds
from the liquidation of a company's assets, but are subordinate to the claims of
all creditors.

Repurchase Agreements
Repurchase agreements, or repos, are transactions in which a security (usually a
government security) is purchased with a simultaneous commitment to sell it back
to the seller (a commercial bank or recognized securities dealer) at an agreed
upon price on an agreed upon date, usually the next day. If the seller of the
underlying security under the repurchase agreement should default on its
obligation to repurchase the underlying security, a Fund may experience delay or
difficulty in exercising its right to realize upon the security. Additionally, a
Fund may

More About Alleghany Funds (continued)

incur a loss if the value of the security should decline, as well as any
disposition costs in liquidating the security.

Rule 144A Securities
Rule 144A securities are restricted securities that can be sold to qualified
institutional buyers under the 1933 Act. Investing in Rule 144A securities may
increase the illiquidity of a Fund's investments in the event that an adequate
trading market does not exist for these securities.

U.S. Government Securities
These are fixed income obligations of the U.S. Government and its various
agencies. U.S. Government securities issued by the Treasury (bills, notes and
bonds) are backed by the full faith and credit of the federal government. Some
government securities not issued by the U.S. Treasury also carry the
government's full faith and credit backing on principal or interest payments.
Some securities are backed by the issuer's right to borrow from the U.S.
Treasury and some are backed only by the credit of the issuing organization. All
government securities are considered highly creditworthy and virtually
risk-free.

OTHER INVESTMENT STRATEGIES

ADRs/EDRs Asset/Mortgage Below CMOs Commercial Corporate Convertible
- Investment Paper Bonds Securities
Backed Grade and
Securities Securities Securities
(Junk of
bonds) Other
Investment
Companies

Montag & Caldwell Growth Fund X X X X P
Alleghany/Chicago Trust Growth & Income Fund X X X X X X X P
Alleghany/Blairlogie International Developed
Fund X X X X X
Alleghany/Blairlogie Emerging Markets Fund X X X X X
Montag & Caldwell Balanced Fund X X X X X P X P
Alleghany/Chicago Trust Bond Fund X P X X X X P X

Debentures Derivatives Equity Fixed Foreign Preferred Repurchase
and (Options, Securities Income Securities Stocks Agreements
Convertible Forwards, Securities
Debentures Futures,
Swaps)

Montag & Caldwell Growth Fund X X X P X X X
Alleghany/Chicago Trust Growth & Income Fund X X P X X P X
Alleghany/Blairlogie International Developed
Fund X X P X P X
Alleghany/Blairlogie Emerging Markets Fund X X P X P X
Montag & Caldwell Balanced Fund X X X P X P X X
Alleghany/Chicago Trust Bond Fund X X X P X

Rule U.S.
144A Government
Securities Securities

Montag & Caldwell Growth Fund X X
Alleghany/Chicago Trust Growth & Income Fund X X
Alleghany/Blairlogie International Developed
Fund X X
Alleghany/Blairlogie Emerging Markets Fund X X
Montag & Caldwell Balanced Fund X X P
Alleghany/Chicago Trust Bond Fund X X P

</TABLE>

P = components of a fund's primary investment strategy

Management of the Funds

THE ADVISERS
Each Fund has an Adviser that provides management services. The Adviser is paid
an annual management fee by each Fund for its services based on the average
daily net assets of the Fund. The accompanying information highlights each Fund
and its lead portfolio manager(s) and investment experience and the management
fees paid by each Fund.

The Chicago Trust Company
The Chicago Trust Company is the Adviser to Alleghany/ Chicago Trust Growth &
Income Fund and Alleghany/ Chicago Trust Bond Fund. As of December 31, 2000,
Chicago Trust managed approximately [$11.8] billion in assets, consisting
primarily of insurance, pension and profit sharing accounts, as well as accounts
of high net worth individuals and families. Chicago Trust is an indirect,
wholly-owned subsidiary
of .

Fund Name Portfolio Manager(s) Investment Experience

Alleghany/Chicago Trust Growth Bernard F. Myszkowski Portfolio Manager of the Fund since September 1999; Senior
& Income Fund Vice President and Chief Equity Officer; associated with
(subadvised by Chicago Chicago Trust and its affiliates since 1969. He has been a
Capital Management, Inc.) member of the Equity Investment Committee since 1993, and a
manager of balanced and common stock portfolios for
institutional and private family accounts in 1973. Mr.
Myszkowski received a BS from DePaul University in 1967 and
an MBA from Northwestern University in 1971. He is a
Chartered Financial Analyst.

Richard S. Drake Portfolio Manager of the Fund since February 2000; Vice
President, Director of Equity Research and Portfolio
Manager; associated with Chicago Trust since January 2000.
Mr. Drake has 17 years of investment experience; he
previously held a senior investment management position with
Duff & Phelps Investment Management, Inc. from 1995-1999.
Prior to that he was a Vice President and Senior Research
Analyst with Society Asset Management/Key Corp. Mr. Drake
received his BBA from the University of Cincinnati and his
MM from the Kellogg Graduate School of Management at
Northwestern University. He is a Chartered Financial
Analyst.

Alleghany/Chicago Trust Bond Thomas J. Marthaler Portfolio Manager since the Fund's inception in 1993; Vice
Fund President; associated with Chicago Trust and its affiliates
(subadvised by Chicago since 1981. He has managed fixed income investment
Capital Management, Inc.) portfolios since 1984. Mr. Marthaler has a BA from the
University of St. Thomas and an MBA from Loyola University.
He is a Chartered Financial Analyst.

</TABLE>

Fund Name Gross Management Fee

Alleghany/Chicago Trust Growth & Income Fund 0.70%
Alleghany/Chicago Trust Bond Fund 0.55%

Management of the Funds (continued)

Montag & Caldwell, Inc.

Montag & Caldwell, Inc. is the Adviser to Montag & Caldwell Growth Fund and
Montag & Caldwell Balanced Fund. The firm was founded in 1945 and is an indirect
wholly-owned subsidiary of . As of December 31, 2000, Montag
& Caldwell managed approximately $35.1 billion in assets.

Fund Name Portfolio Manager Investment Experience

Montag & Caldwell Growth Ronald E. Canakaris Portfolio Manager since the Funds' inceptions in 1994;
Fund President and Chief Investment Officer of Montag & Caldwell.
Montag & Caldwell Balanced He has been with the firm since 1972 and is responsible for
Fund developing the firm's investment process. He has a BS and BA
from the University of Florida. Mr. Canakaris is a Chartered
Investment Counselor and a Chartered Financial Analyst.

</TABLE>

Fund Name Management Fee

First $800
Alleghany/Montag & Caldwell Growth Fund million 0.80%
Over $800 million 0.60%
Alleghany/Montag & Caldwell Balanced Fund 0.75%

Blairlogie Capital Management
Blairlogie Capital Management is the Adviser to Alleghany/ Blairlogie
International Developed Fund and Alleghany/ Blairlogie Emerging Markets Fund.
The firm was founded in
1992 and is currently an indirect subsidiary of . As of December 31,
2000, Blairlogie managed approximately $1.4 billion in assets, primarily for
institutional clients.
<TABLE>
<CAPTION>
<S> <C> <C> <C>

Fund Name Portfolio Manager(s) Investment Experience

Alleghany/Blairlogie James G. S. Smith Portfolio Manager since the Funds' inceptions in 1993; Chief
International Developed Fund Investment Officer at Blairlogie. He has been with the firm
Alleghany/Blairlogie Emerging since 1992 and is responsible for setting investment policy
Markets Fund and determining asset allocation; he also manages the
investment team. Mr. Smith holds a BSc in Economics from
London University. He is an Associate of the Institute of
Investment Management and Research and a Fellow of The
Chartered Insurance Institute.

</TABLE>

Fund Name Gross Management Fee

Alleghany/Blairlogie International Developed
Fund 0.85%
Alleghany/Blairlogie Emerging Markets Fund 0.85%

Shareholder Information

OPENING AN ACCOUNT
- Read this prospectus carefully.
- Determine how much you want to invest. The minimum initial investments for
Class I shares of each Fund are as follows:
o Montag & Caldwell Growth Fund: $5 million
o Alleghany/Chicago Trust Growth & Income Fund: $5 million
o Alleghany/Blairlogie International Developed Fund: $1 million
o Alleghany/Blairlogie Emerging Markets Fund: $1 million
o Montag & Caldwell Balanced Fund: $1 million
o Alleghany/Chicago Trust Bond Fund: $2 million
- Balances can be aggregated to meet the minimum investment requirements for the
accounts of :
o clients of a financial consultant
o immediate family members (i.e., a person's spouse, parents, children,
siblings and in-laws)
o a corporation or other legal entity
- Initial minimum investment requirements may be waived:
o for Trustees and employees of The Chicago Trust Company, Montag & Caldwell,
Blairlogie Capital Management and their affiliated companies
o with a "letter of intent." This letter would explain how the
investor/financial consultant would purchase shares over a Board-approved
specified period of time to meet the minimum investment requirement
- Complete the account application and carefully follow the instructions. If you
have any questions, please call 800 992-8151. Remember to complete the
"Purchase, Exchange and Redemption Authorization" section of the account
application to establish your account privileges. You can avoid the delay and
inconvenience of having to request these in writing at a later date.
- Make your initial investment using the following table as a guideline.

To add to an account (no minimum for subsequent
Buying Shares To open an account investments)

By Mail - Complete and sign your - Return the investment slip from a statement with your
application. check in the envelope provided and mail to us at the address
Alleghany Funds at the left.
P.O. Box 5164 - Make your check payable to
Westborough, MA 01581 Alleghany Funds and mail to us - We accept checks, bank drafts, money orders and wires and
at the address at the left. ACH for purchases (see "Other Features" on p. 26). Checks
must be drawn on U.S. banks. There is a $20 charge for
- We accept checks, bank drafts returned checks.
and money orders for purchases.
Checks must be drawn on U.S. banks - Give the following wire/ACH information to your bank:
to avoid any fees or delays in
processing your check. Boston Safe Deposit & Trust
ABA #01-10-01234
- We do not accept third party For: Alleghany Funds
checks, which are checks made A/C 140414
payable to someone other than FBO "Alleghany Fund Number"
the Funds. "Your Account Number"
- We do not accept third party checks, which are checks made
payable to someone other than the Funds.

Shareholder Information (continued)

To add to an account
Buying Shares To open an account (no minimum for subsequent investments)

By Phone - Obtain a fund number and account - Verify that your bank or credit union is a member of the
by calling Alleghany Funds at the ACH.
800 992-8151 number at the left.
- You should complete the "Bank Account Information" section
- Instruct your bank (who may on your account application.
charge a fee) to wire or ACH the
amount of your investment. - When you are ready to add to your account, call Alleghany
Funds and tell the representative the fund name, account
- Give the following wire/ACH number, the name(s) in which the account is registered and
information to your bank: the amount of your investment.
Boston Safe Deposit & Trust - Instruct your bank (who may charge a fee) to wire or ACH
ABA #01-10-01234 the amount of your investment.
For: Alleghany Funds
A/C 140414 - Give the following wire/ACH information to your bank:
FBO "Alleghany Fund Number"
"Your Account Number" Boston Safe Deposit & Trust
ABA #01-10-01234
- Return your completed and signed For: Alleghany Funds
application to: A/C 140414
FBO "Alleghany Fund Number"
Alleghany Funds "Your Account Number"
P.O. Box 5164
Westborough, MA 01581
By Internet - Download the appropriate account - Verify that your bank or credit union is a member of the
application(s) from our Web site. ACH.
www.AlleghanyFunds.com
- Complete and sign the - Complete the "Purchase, Exchange and Redemption
application(s). Make your check Authorization" section of your account application.
payable to Alleghany Funds and
mail it to the address under "By - Obtain a Personal Identification Number (PIN) from
Mail' above. Alleghany Funds for use on Alleghany Funds' Web site if you
have not already done so. To obtain a PIN, please call 800
992-8151.
- When you are ready to add to your account, access your
account through Alleghany Funds' Web site and enter your
purchase instructions in the highly secure area for
shareholders only called "Shareholder Account Access".
</TABLE>

EXCHANGING SHARES
After you have opened an account with us, you can exchange your shares within
Alleghany Funds to meet your changing investment goals or other needs. This
privilege is not designed for frequent trading and may be difficult to implement
in times of drastic market changes.

You can exchange shares from one Alleghany Fund to another within the same class
of shares. All exchanges to open new fund accounts must meet the minimum initial
investment requirements. Exchanges may be made by mail or by phone at 800
992-8151 if you chose this option when you opened your account. For tax
purposes, each exchange is treated as a sale and a new purchase.

The Funds reserve the right to limit, impose charges upon, terminate or
otherwise modify the exchange privilege by sending written notice to
shareholders.

Shareholder Information (continued)

SELLING/REDEEMING SHARES
Once you have opened an account with us, you can sell your shares to meet your
changing investment goals or other needs. The following table shows guidelines
for selling shares.

Selling Shares Designed for... To sell some or all of your shares...

By Mail - Accounts of any type - Write and sign a letter of instruction indicating the fund
name, fund number, your account number, the name(s) in which
Alleghany Funds - Sales or redemptions of any size the account is registered and the dollar value or number
P.O. Box 5164 of shares you wish to sell.
Westborough, MA 01581
- Include all signatures and any additional documents that
may be required. (See "Selling Shares in Writing.")
- Mail to us at the address at the left.
- A check will be mailed to the name(s) and address in which
the account is registered. If you would like the check
mailed to a different address, you must write a letter of
instruction and have it signature guaranteed.
- Proceeds may also be sent by wire or ACH (see "Other
Features" on p. 26).

By Phone - Non-retirement accounts - For automated service 24 hours a day using your touch-tone
phone, call us at the number to the left.
800 992-8151 - Sales of up to $50,000 (for
accounts with telephone account - To place your request with a Shareholder Service
privileges) Representative, call between 9am and 7pm ET,
Monday - Friday.
- A check will be mailed to the name(s) and address in which
the account is registered. If you would like the check
mailed to a different address, you must write a letter of
instruction and have it signature guaranteed.
- Proceeds may also be sent by wire or ACH (see "Other
Features" on p. 26).
- The Funds reserve the right to refuse any telephone sales
request and may modify the procedures at any time. The Funds
make reasonable attempts to verify that telephone
instructions are genuine, but you are responsible for any
loss that you may incur from telephone requests.

Shareholder Information (continued)

Selling Shares Designed for... To sell some or all of your shares...

By Internet - Non-retirement accounts - Complete the "Purchase, Exchange and Redemption
Authorization" section of your account application.
www.AlleghanyFunds.com
- Obtain a Personal Identification Number (PIN) from
Alleghany Funds (800 992-8151) for use on Alleghany Funds'
Web site if you have not already done so.
- When you are ready to redeem a portion of your account,
access your account through Alleghany Funds' Web site and
enter your redemption instructions in the highly secure
area for shareholders only called "Shareholder Account
Access". A check for the proceeds will be mailed to you at
the address of record.
- Proceeds may also be sent by wire or ACH (see "Other
Features" on p. 26).
</TABLE>

Selling Shares in Writing
In certain circumstances, you must make your request to sell shares in writing.
You may need to include a medallion signature guarantee (which protects you
against fraudulent orders) and additional items with your request, as shown in
the table below. We require medallion signature guarantees if:
- your address of record has changed within the past 30 days
- you are selling more than $50,000 worth of shares (except for Montag &
Caldwell Growth Fund and Montag & Caldwell Balanced Fund)
- you are requesting payment other than by a check mailed to the address of
record and payable to the registered owner(s) or other than wire or ACH sent
to the bank account of the registered owner

Signature guarantees help ensure that major transactions or changes to your
account are in fact authorized by you. For example, we require a medallion
signature guarantee on written redemption requests for more than $50,000. A
medallion signature guarantee may be obtained from a domestic bank or trust
company, broker, dealer, clearing agency, savings association or other financial
institution which is participating in a medallion program recognized by the
Securities Transfer Association. The three recognized programs are Securities
Transfer Agents Medallion Program (STAMP), Stock Exchange Medallion Program
(SEMP) and New York Stock Exchange, Inc. Medallion Signature Program (NYSE MSP).
Signature guarantees from financial institutions which are not participating in
one of these programs will not be accepted.

A notary public stamp or seal cannot be substituted for a signature guarantee.

Shareholder Information (continued)

Seller Requirements for Written Requests

Owners of individual, joint, sole - Letter of instruction
proprietorship, UGMA/UTMA, or general
partner accounts - On the letter, the signatures and titles of all persons
authorized to sign for the account, exactly as the account
is registered
- Signature guarantee, if applicable (see above)
Owners of corporate or association - Letter of instruction
accounts
- Corporate resolution certified within the past 12 months
- On the letter, the signatures and titles of all persons
authorized to sign for the account, exactly as the account
is registered
- Signature guarantee, if applicable (see above)
Owners or trustees of trust accounts - Letter of instruction
- On the letter, the signature of the trustee(s)
- If the names of all trustees are not registered on the
account, a copy of the trust document certified within the
past 12 months
- Signature guarantee, if applicable (see above)
Joint tenancy shareholders whose co- - Letter of instruction signed by the surviving tenant
tenants are decease
- Copy of death certificate
- Signature guarantee, if applicable (see above)
Executors of shareholder estates - Letter of instruction signed by executor
- Copy of order appointing executor
- Signature guarantee, if applicable (see above)
Administrators, conservators, - Call 800 992-8151 for instructions
guardians and other sellers or
account types not listed above
IRA accounts - IRA distribution request form completed and signed. Call
800 992-8151 for a form.
</TABLE>

Other Features
The following other features are also available to buy and sell shares of the
Funds.

Wire. To purchase and sell shares via the Federal Reserve Wire System.
- You must authorize Alleghany Funds to honor wire instructions before using
this feature. Complete the appropriate section on the application when opening
your account or call 800 992-8151 to add the feature after your account is
opened. Call 800 992-8151 before your first use to verify that this feature is
set up on your account.
- To sell shares by wire, you must designate the U.S. commercial bank account(s)
into which you wish the redemption proceeds deposited.
- Please remember that if you request redemptions by wire, $20 will be deducted
from the amount redeemed. Your bank also may charge a fee.

Automated Clearing House (ACH). To transfer money between your bank account and
your Alleghany Funds account(s).
- You must authorize Alleghany Funds to honor ACH instructions before using this
feature. Complete the appropriate section on the application when opening your
account or call 800 992-8151 to add the feature after your account is opened.
Call 800 992-8151 before your first use to verify that this feature is set up
on your account.
- Most transfers are complete within three business days of your call.
- There is no fee to your account for this transaction and generally, no fee
from your bank.

Shareholder Information (continued)

Redemptions in Kind
The Funds have elected, under Rule 18f-1 of the Investment Company Act of 1940,
as amended, to pay sales proceeds in cash up to $250,000 or 1% of each Fund's
total value during any 90-day period for any one shareholder, whichever is less.
Larger redemptions may be detrimental to existing shareholders. While we intend
to pay all sales proceeds in cash, we reserve the right to make higher payments
to you in the form of certain marketable securities of the Fund. This is called
a "redemption in kind." You may pay certain sales charges related to a
redemption in kind, such as brokerage commissions, when you sell the securities.

TRANSACTION POLICIES
Calculating Share Price
When you buy, exchange or sell shares, the net asset value (NAV) is used to
price your purchase or sale. The NAV for each Fund is determined each business
day at the close of regular trading on the New York Stock Exchange, Inc. (NYSE)
(typically 4 p.m. Eastern Time (ET)) by dividing a class's net assets by the
number of its shares outstanding. Generally, market quotes are used to price
securities. If market quotations are not available, securities are valued at
fair value as determined by the Board of Trustees.

Quotations of foreign securities denominated in foreign currency are converted
to U.S. dollar equivalents using foreign exchange quotations received from
independent dealers. Events affecting the values of portfolio securities that
occur between the time their prices are determined and the close of regular
trading on the NYSE may not be reflected in the calculation of net asset value.
If events materially affecting the value of such securities occur during such
period, then these securities may be valued at fair value as determined by the
Adviser and approved in good faith by the Board of Trustees.

Shares of Alleghany Funds can also be purchased through broker-dealers, banks
and trust departments that may charge you a transaction or other fee for their
services. These fees are not charged if you purchase shares directly from
Alleghany Funds. Alleghany Funds reserve the right to reject any purchase order
and to suspend the offering of fund shares. The Funds also reserve the right to
change the initial and additional investment minimums or to waive these minimums
for any investor. Alleghany Funds reserves the right to delay sending you your
sales proceeds for up to 15 days if you purchased shares by check. A minimum $20
charge will be assessed if any check used to purchase shares is returned.

Short-Term Trading
The Funds are not designed for frequent trading and certain purchase or exchange
requests may be difficult to implement in times of drastic market changes. The
Funds reserve the right to refuse any purchase or exchange order that could
adversely affect the Funds or their operations. The Funds also reserve to right
to limit, impose charges upon, terminate or otherwise modify the exchange
privilege by sending written notice to shareholders.

Redemption Fees
Alleghany/Blairlogie International Developed Fund and Alleghany/Blairlogie
Emerging Markets Fund can experience substantial price fluctuations and are
intended for long-term investors. Short-term "market timers" who engage in
frequent purchases and redemptions can disrupt the Funds' investment programs
and create significant additional transaction costs that are borne by all
shareholders. For these reasons, the Alleghany/Blairlogie International
Developed Fund and Alleghany/Blairlogie Emerging Markets Fund assess a 2% fee on
redemptions (including exchanges) of fund shares held for less than 90 days.

Redemption fees are paid to the respective Fund to help offset transaction costs
and to protect the Fund's long-term shareholders. Each Fund will use the
"first-in, first-out" (FIFO) method to determine the 90-day holding period.
Under this method, the date of the redemption or exchange will be compared to
the earliest purchase date of shares held in the account. If this holding period
is less than 90 days, the fee will be charged. The fee does not apply to any
shares purchased through reinvested distributions (dividends and capital gains).

Omnibus or similar accounts of certain pre-approved broker-dealers, banks and
other institutions will not incur redemption fees at the account level. These
accounts have multiple underlying shareholders who may be charged the redemption
fee by the broker-dealer, bank or other institution. Certain pre-approved
profit-sharing, pension and 401K plans are exempt from the redemption fee.

Shareholder Information (continued)

ACCOUNT POLICIES AND DIVIDENDS
Account Statements
In general, you will receive quarterly account statements. In addition, you will
also receive account statements:
- after every transaction that affects your account balance (except for dividend
reinvestments or automatic investment plans)
- after any change of name or address of the registered owner(s)

Dividends
The following table shows the Funds' distribution schedule.

Distribution Schedule

Funds Dividends Capital Gains Distribution

Montag & Caldwell Growth Fund - Declared and paid - Generally distributed at least once a year in
Alleghany/Chicago Trust Growth & Income Fund quarterly December
Montag & Caldwell Balanced Fund
Alleghany/Blairlogie International Developed - Declared and paid annually - Generally distributed at least once a year in
Fund December
Alleghany/Blairlogie Emerging Markets Fund
Alleghany/Chicago Trust Bond Fund - Declared and paid monthly - Generally distributed at least once a year in
December

</TABLE>

Dividend Reinvestments

Many investors have their dividends reinvested in additional shares of the same
fund. If you choose this option, or if you do not indicate a choice, your
dividends will be automatically reinvested on the dividend payable date. You can
also choose to have a check for your dividends mailed to you by choosing this
option on your account application.

Shareholder Information (continued)

ADDITIONAL INVESTOR SERVICES
Automatic Investment Plan
After meeting the standard minimum initial investment of the Fund, the Automatic
Investment Plan allows you to set up a regular transfer of funds from your bank
account to the Alleghany Fund(s) of your choice. You determine the amount of
your investment, and you can terminate the program at any time. To take
advantage of this feature:
- Write and sign a letter of instruction including the fund name, fund number,
your account number, the name(s) in which the account is registered, the
dollar value of shares you wish to purchase each month and the date each month
for which the automatic investment is to be made.
- Include a voided check.
- Mail to:
Alleghany Funds
P.O. Box 5164
Westborough, MA 01581

Alleghany Funds Web Site
Alleghany Funds maintains a Web site located at http://www.AlleghanyFunds.com.
You can purchase, exchange and redeem shares and access information such as your
account balance and the Funds' NAVs through our Web site. In order to engage in
shareholder transactions on our Web site, you must obtain a Personal
Identification Number (PIN) by calling us at 800 992-8151. One of our
Shareholder Service Representatives will ask a series of questions to verify
your identity and assign a temporary PIN that will allow you to log onto
Shareholder Account Access on our site. You will be prompted to change the
temporary PIN to a new PIN, which will be known only to you, and then you may
access your account information. You may also need to have bank account
information, wire instructions, Automated Clearing House (ACH) instructions or
other options established on your account.

Our Web site is highly secure to prevent unauthorized access to your account
information. The Funds and their agents will not be responsible for any losses
resulting from unauthorized transactions on our Web site when procedures
designed for engaging in such transactions are followed.

PORTFOLIO TRANSACTIONS AND BROKERAGE COMMISSIONS
Alleghany Funds attempts to obtain the best possible price and most favorable
execution of transactions in its portfolio securities. Under policies
established by the Board of Trustees, there may be times when Alleghany Funds
may pay one broker-dealer a commission that is greater than the amount that
another broker-dealer may charge for the same transaction. The Adviser generally
determines in good faith if the commission paid was reasonable in relation to
the services provided by the broker-dealer. In selecting and monitoring
broker-dealers and negotiating commissions, Alleghany Funds considers a
broker-dealer's reliability, the availability of research, the quality of its
execution services and its financial condition.

In executing portfolio transactions, preference may be given to brokers who have
sold shares of the Funds.

Dividends, Distributions and Taxes

Certain tax considerations may apply to your investment in Alleghany Funds. If
you have any tax-related questions relating to your own investments, please
consult your tax adviser. Further information regarding the tax consequences of
investing in the Funds is included in the Statement of Additional Information.

- The Funds pay dividends and distribute capital gains at different intervals. A
dividend is a payment of net investment income to investors who hold shares in
a mutual fund. A distribution is the payment of income and/or capital gain
from a mutual fund's earnings. All dividends and distributions are
automatically reinvested at NAV unless you choose to receive them in a cash
payment. You can change your payment options at any time by writing to us.

- The tax treatment of dividends and distributions is the same whether you
reinvest the distributions or elect to receive them in cash. You will receive
a statement with the tax status of your dividends and distributions for the
prior year by January 31.

- Distributions of any net investment income are taxable to you as ordinary
income.

- Distributions of net long-term capital gain (net long-term capital gain less
any net short-term capital loss) are taxable as long-term capital gain
regardless of how long you may have held the shares of a fund. In contrast,
distributions of net short-term capital gain (net short-term capital gain less
any long-term capital loss) are taxable as ordinary income regardless of how
long you have held shares of a fund.

- When you sell or exchange shares in a non-retirement account, it is considered
a current year taxable event for you. Depending on the purchase price and the
sale price of the shares you sell or exchange, you may have a gain or a loss
on the transaction. You are responsible for any tax liabilities generated by
your transactions.

- Each Fund is obligated by law to withhold 31% of Fund distributions if you do
not provide complete and correct taxpayer identification information.

Financial Highlights

These financial highlights tables are to help you understand the Funds'
financial performance. The following schedules present financial highlights for
one share of the Funds outstanding throughout the periods indicated. The total
returns in the tables represent the rate that an investor would have earned or
lost on an investment in a Fund (assuming reinvestment of all dividends and
distributions). For all Funds for the fiscal year ended October 31, 2000, this
information has been audited by KPMG LLP, whose report, along with the Funds'
financial statements, is included in the Funds' Annual Report, which is
available upon request. For Alleghany/Blairlogie International Developed Fund
and Alleghany/Blairlogie Emerging Markets Fund, information prior to June 30,
1998 has been audited by PricewaterhouseCoopers LLP.

MONTAG & CALDWELL GROWTH FUND

Year Year Year Year Period
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96*

Net Asset Value, Beginning of Period $33.46 $26.65 $22.75 $17.08 $15.59
------ ------ ------ ------ ------
Income from Investment Operations
Net investment income 0.04 0.01 --(a) 0.02
Net realized and unrealized gain on investments 7.71 4.10 5.81 1.49
------ ------ ------ ------
Total from investment operations 7.75 4.11 5.81 1.51
------ ------ ------ ------
Less Distributions
Distributions from and in excess
of net investment income -- -- -- (0.02)
Distributions from net realized
gain on investments (0.94) (0.21) (0.14) 0.00
------ ------ ------ ------
Total distributions (0.94) (0.21) (0.14) (0.02)
------ ------ ------ ------
Net increase in net asset value 6.81 3.90 5.67 1.49
------ ------ ------ ------
Net Asset Value, End of Period $33.46 $26.65 $22.75 $17.08
====== ====== ====== ======
Total Return(1) 29.78% 18.24% 34.26% 9.67%

Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $1,369,673 $738,423 $268,861 $52,407
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(2) 0.76% 0.85% 0.93% 0.98%
After reimbursement of expenses by Adviser(2) 0.76% 0.85% 0.93% 0.98%
Ratio of net investment income
to average net assets:
Before reimbursement of expenses by Adviser(2) 0.14% 0.05% (0.07)% 0.17%
After reimbursement of expenses by Adviser(2) 0.14% 0.05% (0.06)% 0.17%
Portfolio Turnover(1) 31.59% 29.81% 18.65% 26.36%

*Montag & Caldwell Growth Fund Class I shares commenced operations on June 28,
1996.
(1)Not annualized
(2)Annualized
(a) Represents less than $0.01 per share.

</TABLE>

Financial Highlights (continued)

ALLEGHANY/CHICAGO TRUST GROWTH & INCOME FUND PERIOD ENDED 10/31/00

[TABLE TO COME]

*Alleghany/Chicago Trust Growth & Income Fund Class I Shares commenced
operations July 31, 2000

Financial Highlights (continued)

ALLEGHANY/BLAIRLOGIE INTERNATIONAL DEVELOPED FUND

Six Ten Eight
Year Months Months Year Year Months
Ended Ended Ended Ended Ended Ended
10/31/00 10/31/99 4/30/99 6/30/98 6/30/97 6/30/96

Net Asset Value, Beginning of Period $ 13.40 $ 12.70 $ 14.32 $ 13.12 $ 12.54 $ 11.74
-------- -------- -------- -------- ------- -------
Income from Investment Operations
Net investment income 0.08 -- 0.16 0.10 0.72
Net realized and unrealized gain on
investments 0.62 0.17 1.73 1.09 0.72
-------- -------- -------- -------- ------- -------
Total from investment operations 0.70 0.17 1.89 1.19 1.44
-------- -------- -------- -------- ------- -------
Less Distributions
Distributions from and in excess
of net investment income -- (0.05) (0.11) -- (0.43)
Distributions from net realized
gain on investments -- (1.74) (0.58) (0.61) (0.21)
-------- -------- -------- -------- ------- -------
Total Distributions -- (1.79) (0.69) (0.61) (0.64)
-------- -------- -------- -------- ------- -------
Net increase (decrease) in net asset value 0.70 (1.62) 1.20 0.58 0.80
-------- -------- -------- -------- ------- -------
Net Asset Value, End of Period $ 13.40 $ 12.70 $ 14.32 $ 13.12 $ 12.54
======== ======== ======== ======== ======= =======
Total Return(1) 5.51% 1.31% 15.69% 10.07% 12.54%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $97,067 $101,084 $122,126 $94,044 $70,207
Ratio of expenses to average net assets:
Before reimbursement of expenses by
Adviser(2) 1.16% 1.16% 1.11% 1.13% 1.10%
After reimbursement of expenses by
Adviser(2) 1.10% 1.16% 1.11% 1.13% 1.10%
Ratio of net investment income to
average net assets:
Before reimbursement of expenses by
Adviser(2) 1.20% 0.04% 1.20% 0.85% 0.81%
After reimbursement of expenses by
Adviser(2) 1.26% 0.04% 1.20% 0.85% 0.81%
Portfolio Turnover(1) 28.91% 36.00% 60.00% 77.00% 60.00%

(1)Not Annualized
(2)Annualized
</TABLE>

Financial Highlights (continued)

ALLEGHANY/BLAIRLOGIE EMERGING MARKETS FUND

Six Ten Eight
Year Months Months Year Year Months
Ended Ended Ended Ended Ended Ended
10/31/00 10/31/99 4/30/99 6/30/98 6/30/97 6/30/96

Net Asset Value, Beginning of Period $ 10.79 $ 10.43 $ 10.18 $ 13.96 $ 12.66 $ 11.27
-------- -------- -------- -------- -------- --------
Income from Investment Operations
Net investment income 0.06 0.06 0.06 0.06 0.03
Net realized and unrealized gain
(loss) on investments 0.30 0.23 (3.84) 1.30 1.40
-------- -------- -------- -------- --------
Total from investment operations 0.36 0.29 (3.78) 1.36 1.43
-------- -------- -------- -------- --------
Less Distributions
Distributions from and in excess
of net investment income -- (0.03) -- (0.06) (0.04)
Distributions from net realized
gain on investments -- -- -- -- --
Return of capital distributions -- (0.01) -- -- --
-------- -------- -------- -------- --------
Total Distributions -- (0.04) -- (0.06) (0.04)
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value 0.36 0.25 (3.78) 1.30 1.39
-------- -------- -------- -------- --------
Net Asset Value, End of Period $ 10.79 $ 10.43 $ 10.18 $ 13.96 $ 12.66
======== ======== ======== ======== ========
Total Return(1) 3.45% 2.98% (27.08)% 10.85% 12.70%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $16,579 $18,043 $24,251 $52,703 $80,545
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(2) 1.82% 1.43% 1.39% 1.45% 1.35%
After reimbursement of expenses by Adviser(2) 1.35% 1.43% 1.39% 1.45% 1.35%
Ratio of net investment income
to average net assets:
Before reimbursement of expenses by Adviser(2) 0.66% 0.94% 0.52% 0.45% 0.84%
After reimbursement of expenses by Adviser(2) 1.13% 0.94% 0.52% 0.45% 0.84%
Portfolio Turnover(1) 46.93% 38.00% 52.00% 74.00% 74.00%

</TABLE>

(1)Not Annualized
(2)Annualized

Financial Highlights (continued)

MONTAG & CALDWELL BALANCED FUND

Year Period
Ended Ended
10/31/00 10/31/99*

Net Asset Value, Beginning of Period $19.42 $18.36
-------- --------
Income from Investment Operations
Net investment income 0.25
Net realized and unrealized gain on investments 1.03
--------
Total from investment operations 1.28
--------
Less Distributions
Distributions from and in excess of net investment
income (0.22)
Distributions from net realized gain on investments --
--------
Total distributions (0.22)
--------
Net increase in net asset value 1.06
--------
Net Asset Value, End of Period $19.42
========
Total Return(1) 6.98%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $90,906
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(2) 0.91%
After reimbursement of expenses by Adviser(2) 0.91%
Ratio of net investment income to average net assets:
Before reimbursement of expenses by Adviser(2) 1.77%
After reimbursement of expenses by Adviser(2) 1.77%
Portfolio Turnover(1) 34.79%

*Montag & Caldwell Balanced Fund Class I shares commenced operations on December
31, 1998.
(1)Not annualized
(2)Annualized

Financial Highlights (continued)

ALLEGHANY/CHICAGO TRUST BOND FUND PERIOD ENDED 10/31/00

[TABLE TO COME]

*Alleghany/Chicago Trust Bond Fund Class I shares commenced operations on July
31, 2000.

General Information

If you wish to know more about Alleghany Funds, you will find additional
information in the following documents:

SHAREHOLDER REPORTS
You will receive Semi-Annual Reports dated April 30 and Annual Reports, audited
by independent accountants, dated October 31. The annual report contains a
discussion of the market conditions and investment strategies that significantly
affected each Fund's performance during its last fiscal year.

STATEMENT OF ADDITIONAL INFORMATION (SAI)
The SAI, which is incorporated into this prospectus by reference and dated March
1, 2001, is available to you without charge. It contains more detailed
information about the Funds.

HOW TO OBTAIN REPORTS

Contacting Alleghany Funds
You can get free copies of the reports and SAI, request other information and
discuss your questions about the Funds by contacting:

Address: Alleghany Funds
P.O. Box 5164
Westborough, MA 01581
Phone: Shareholder Services 800 992-8151
Fund Literature
800 391-2473
Investment Advisor Services
800 597-9704
Web site: www.AlleghanyFunds.com

Obtaining Information from the SEC
You can visit the EDGAR database on the SEC's Web site at http://www.sec.gov to
view the SAI and other information. You can also view and copy information about
the Funds at the SEC's Public Reference Room in Washington D.C. To find out more
about the Public Reference Room, you can call the SEC at 202 942-8090. Also, you
can obtain copies of this information by sending your request and duplication
fee to the SEC's Public Reference Room, Washington D.C. 20549-0102 or by
emailing the SEC at [email protected].

Investment Company Act File Number: 811-8004 AG10

General Information

If you wish to know more about Alleghany Funds, you will find additional
information in the following documents:

HOW TO OBTAIN REPORTS

Contacting Alleghany Funds
You can get free copies of the reports and SAI, request other information and
discuss your questions about the Funds by contacting:

Investment Company Act File Number: 811-8004 AG10 W/AG16

[ALLEGHANY FUNDS LOGO]

CLASS I SHARES
Prospectus Supplement
dated February 15, 2000
to Prospectus (Class I Shares) dated February
15, 2000

ALLEGHANY FUNDS

Sales of shares of Alleghany/Chicago Trust
Growth & Income Fund and Alleghany/Chicago
Trust Bond Fund
have been postponed indefinitely, and
therefore will not be available to investors
until further notice.

February 15,
2000

INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUS FOR FUTURE
REFERENCE.

[ALLEGHANY FUNDS LOGO]

CLASS N SHARES
Prospectus
EQUITY FUNDS

Large-Cap
Alleghany/Montag & Caldwell Growth Fund
Alleghany/Chicago Trust Growth & Income Fund
Alleghany/TAMRO Large Cap Value Fund

Mid-Cap
Alleghany/Chicago Trust Talon Fund

Small-Cap
Alleghany/Veredus Aggressive Growth Fund
Alleghany/TAMRO Small Cap Fund
Alleghany/Chicago Trust Small Cap Value Fund

Sector
Alleghany/Veredus SciTech Fund

INTERNATIONAL EQUITY FUNDS

Alleghany/Blairlogie International Developed
Fund
Alleghany/Blairlogie Emerging Markets Fund

BALANCED FUNDS

Alleghany/Montag & Caldwell Balanced Fund
Alleghany/Chicago Trust Balanced Fund

FIXED INCOME FUNDS

Alleghany/Chicago Trust Bond Fund
Alleghany/Chicago Trust Municipal Bond Fund

MONEY MARKET FUND

Alleghany/Chicago Trust Money Market Fund

March 1, 2001
The Securities and Exchange Commission has not approved or disapproved these or
any mutual fund's shares
or determined if this prospectus is accurate or complete. Any representation to
the contrary is a crime.

[ALLEGHANY FUNDS LOGO]

Thank you for your interest in Alleghany Funds. Our diversified family of
no-load funds offers you a variety of investment opportunities to help you meet
financial goals such as retirement, homebuying or college funding. Please read
this prospectus carefully and keep it for future reference.
For a list of terms with definitions that you may find helpful as you read this
prospectus, please refer to the "Investment Terms" section.
------------------------------
Mutual fund shares are not bank deposits and are not guaranteed, endorsed or
insured by any financial institution, government entity or the Federal Deposit
Insurance Corporation (FDIC).
------------------------------

TABLE OF CONTENTS

Page

Categories of Alleghany Funds 3
Fund Summaries
Investment Objectives, Principal Investment
Strategies and Risks
EQUITY FUNDS
LARGE-CAP 4
Alleghany/Montag & Caldwell Growth Fund 4
Alleghany/Chicago Trust Growth & Income
Fund 5
Alleghany/TAMRO Large Cap Value Fund 6
MID-CAP
Alleghany/Chicago Trust Talon Fund 7
SMALL-CAP
Alleghany/Veredus Aggressive Growth Fund 8
Alleghany/TAMRO Small Cap Fund 10
Alleghany/Chicago Trust Small Cap Value
Fund 11
SECTOR
Alleghany/Veredus SciTech Fund 13
INTERNATIONAL EQUITY FUNDS
Alleghany/Blairlogie International
Developed Fund 15
Alleghany/Blairlogie Emerging Markets Fund 17
BALANCED FUNDS
Alleghany/Montag & Caldwell Balanced Fund 19
Alleghany/Chicago Trust Balanced Fund 21
FIXED INCOME FUNDS
Alleghany/Chicago Trust Bond Fund 23
Alleghany/Chicago Trust Municipal Bond
Fund 25
MONEY MARKET FUND
Alleghany/Chicago Trust Money Market Fund 26
FUND EXPENSES
Investment Terms 29

More About Alleghany Funds 32
RISK SUMMARY 32
OTHER INVESTMENT STRATEGIES 33

Management of the Funds 36
THE ADVISERS
The Chicago Trust Company 36
Montag & Caldwell, Inc. 39
Veredus Asset Management LLC 40
Blairlogie Capital Management 42
TAMRO Capital Partners LLC 42

Shareholder Information 43
OPENING AN ACCOUNT: BUYING SHARES 43
EXCHANGING SHARES 44
SELLING/REDEEMING SHARES 44
TRANSACTION POLICIES 47
ACCOUNT POLICIES AND DIVIDENDS 48
ADDITIONAL INVESTOR SERVICES 49
DISTRIBUTION PLAN 49
PORTFOLIO TRANSACTIONS AND BROKERAGE
COMMISSIONS 49
Dividends, Distributions and Taxes 50
Financial Highlights 51
General Information Back
Cover

Categories of Alleghany Funds

Alleghany Funds is a no-load, open-end management investment company that
consists of fifteen separate diversified investment portfolios, including
equity, balanced, fixed income and money market funds.

EQUITY FUNDS
Equity funds invest principally in stocks and other equity securities. Equity
funds have greater growth potential than many other funds, but they also have
greater risk.

Who may want to invest in Equity Funds
Equity funds may be appropriate if you:
- have a long-term investment goal (five years or more)
- can accept higher short-term risk in return for higher long-term return
potential
- want to diversify your investments

Equity funds may not be appropriate if you want:
- a stable share price
- a short-term investment
- regular income

Who may want to invest in Balanced Funds
Balanced funds may be appropriate if you want:
- capital appreciation and current income
- a balanced diversified investment

FIXED INCOME FUNDS
Fixed income funds invest in corporate and government bonds and other fixed
income securities. These funds provide regular income and the obligations are
generally secured by the assets of the issuer.

Who may want to invest in Fixed Income Funds
Fixed income funds may be appropriate if you want:
- regular income
- less volatility than equity funds
- portfolio diversification

Fixed income funds may not be appropriate if you want:
- capital appreciation

MONEY MARKET FUNDS
Money market funds invest in short-term, high quality money market securities.
They provide stable principal and regular income. The income provided by a money
market fund varies with interest rate movements.

Who may want to invest in Money Market Funds
A money market fund may be appropriate if you:
- want regular income
- are investing for a short-term objective
- want an investment that seeks to maintain a stable net asset value
- want a liquid investment that offers a checkwriting privilege (checks may be
written in amounts of $500 or more)

A money market fund may also be appropriate if you want an investment that can
serve as a "holding place" for money awaiting investment in long-term funds or
for money that may be needed for occasional or unexpected expenses.

A money market fund is not appropriate if you want long-term capital
appreciation.

EQUITY FUNDS: Large-Cap

Alleghany/Montag & Caldwell Growth Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term capital appreciation and, secondarily, current income,
by investing primarily in common stocks and convertible securities.

PRINCIPAL INVESTMENT STRATEGIES
The portfolio manager uses a bottom-up approach to stock selection and seeks
high quality, well-established large-cap companies that:
- have a strong history of earnings growth
- are attractively priced, relative to the company's potential for above average
long-term earnings and revenue growth
- have strong balance sheets
- have a sustainable competitive advantage
- are currently, or have the potential to become, industry leaders
- have the potential to outperform during market downturns

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1995 38.68
1996 32.72
1997 31.85
1998 31.85
1999 22.51

Best quarter: 12/98 26.94%
Worst quarter: 9/98 -14.27%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of the S&P 500
Index, the Lipper Large-Cap Growth Index and
the Lipper Large-Cap Core Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/ Lipper Lipper
Montag & S&P Large-Cap Large-Cap
Caldwell 500 Growth Core
Growth Fund Index Index Index
--------------------------------------------------------------

1 year % % % %
--------------------------------------------------------------

5 years % % % %
--------------------------------------------------------------

Since
Inception(1) % % % %
--------------------------------------------------------------

(1)Fund's inception: November 2, 1994

EQUITY FUNDS: Large-Cap

Alleghany/Chicago Trust Growth & Income Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term total return through a combination of capital
appreciation and current income by investing primarily in a combination of
stocks and bonds.

PRINCIPAL INVESTMENT STRATEGIES
The portfolio manager uses a bottom-up approach and invests in a combination of
securities that offer potential for growth and/or income, including primarily
large-cap dividend and non-dividend paying common stocks, preferred stocks and
convertible securities. Companies for possible selection must pass an initial
capitalization screen. The portfolio manager then identifies stocks of companies
with the following characteristics compared to S&P 500 Index averages:
- higher sales and operating earnings growth
- more stable earnings growth rates
- lower debt-to-capital ratio
- higher return on equity
- market capitalization over $1 billion

PRINCIPAL RISKS OF INVESTING IN THIS FUND
Market risk: A fund's share price can move down over the short term in response
to stock market conditions, changes in the economy and a particular company's
stock price change. An individual stock may decline in value even when stocks in
general are rising.
Growth stock risk: Growth investing involves buying stocks that have relatively
high price-to-earnings ratios and are expected to continue to experience strong
earnings growth. Growth stocks may be more volatile than other stocks because
they are generally more sensitive to investor perceptions and market moves.
Growth stocks may lack the dividends of value stocks that protect stock prices
in a falling market. During periods of growth stock underperformance, a fund's
performance may suffer.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1994 0.50
1995 35.55
1996 25.40
1997 26.74
1998 35.45
1999 23.30

Best quarter: 12/98 23.68%
Worst quarter: 9/98 -9.03%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of the S&P 500
Index and the Lipper Large-Cap Growth Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/
Chicago Trust Lipper
Growth & S&P 500 Large-Cap
Income Fund Index Growth Index
------------------------------------------------------------

1 year % % %
------------------------------------------------------------

5 years % % %
------------------------------------------------------------

Since
Inception(1) % % %
------------------------------------------------------------

(1)Fund's inception: December 13, 1993

EQUITY FUND: Large-Cap

Alleghany/TAMRO Large Cap Value Fund

INVESTMENT OBJECTIVE
The Fund seeks to provide long-term capital appreciation.

PRINCIPAL INVESTMENT STRATEGIES
The portfolio manager invests at least 65% of the Fund's assets in common stocks
of improving quality, large capitalization U.S. companies. Large capitalization
stocks are those issued by established, well-known companies with a market
capitalization of $9 billion or more. The portfolio manager selects stocks based
upon a range of financial criteria including:
- low valuation relative to history and forecasted earnings growth rate
- improving credit quality
- rising earnings estimates

Value stock risk: Value investing involves buying stocks that are out of favor
and/or undervalued in comparison to their peers or their prospects for growth.
Typically, their valuation levels are lower than growth stocks. Because
different types of stocks go out of favor with investors depending on market and
economic conditions, a fund's return may be adversely affected during market
downturns and when value stocks are out of favor.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

FUND PERFORMANCE
The Fund commenced operations on November 30, 2000 and does not have any
significant performance history. Performance information will be included in the
Fund's next annual or semi-annual report.

EQUITY FUNDS: Mid-Cap

Alleghany/Chicago Trust Talon Fund

INVESTMENT OBJECTIVE

The Fund seeks long-term total return through capital appreciation by investing
primarily in common and preferred stocks and convertible securities.

PRINCIPAL INVESTMENT STRATEGIES

The portfolio manager invests primarily in mid-cap stocks of companies with an
improving revenue and earnings growth outlook. The portfolio manager selects
between 30 and 40 stocks based on "bottom-up" fundamental analysis. Important
investment criteria include:

- focused business franchise
- market share growth
- experienced shareholder-oriented management team
- strong or improving balance sheet
- attractive valuation: price-to-earnings multiple is less than the expected
earnings growth rate
The portfolio manager takes a long term approach with a focus on maximizing
after tax returns.

Volatility risk: Although the Fund is a diversified portfolio, it tends to
invest in a fewer number of different stocks than other funds. Consequently, it
may experience larger price swings than funds with greater numbers of stocks.

Mid-cap company risk: Investments in mid-cap companies entail greater risks than
investments in larger, more established companies. Mid-cap companies generally
have narrower product lines, more limited financial resources and a more limited
trading market for their stocks compared with larger companies. As a result,
their stock prices may experience greater volatility and may decline
significantly in market downturns.
Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.
Liquidity risk: When there is no willing buyer and investments cannot be readily
sold at the desired time or price, a fund may have to accept a low price or may
not be able to sell the security at all. An inability to sell securities can
adversely affect a fund's value or prevent a fund from being able to take
advantage of other investment opportunities.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

FUND PERFORMANCE

The bar chart shows how the Fund's performance
has varied from year to year over the periods
shown. This information may help illustrate the
risks of investing in the Fund. As with all
mutual funds, past performance does not
guarantee future performance.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1995 27.35
1996 26.15
1997 26.46
1998 -5.66
1999 11.44

Best quarter: 6/99 19.16%
Worst quarter: 9/98 -14.04%

The following table indicates how the Fund's
average annual returns for different calendar
periods compare to the returns of the S&P 400
Mid-Cap Index and the Lipper Mid-Cap Value
Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/ Lipper
Chicago S&P 400 Mid-Cap
Trust Talon Mid-Cap Value
Fund Index Index
--------------------------------------------------------

1 year % % %
--------------------------------------------------------

5 years % % %
--------------------------------------------------------

Since
Inception(1) % % %
--------------------------------------------------------

(1)Fund's inception: September 19, 1994

EQUITY FUNDS: Small Cap

Alleghany/Veredus Aggressive Growth Fund

INVESTMENT OBJECTIVE
The Fund seeks to provide capital appreciation.

PRINCIPAL INVESTMENT STRATEGIES
The portfolio manager invests primarily in growth stocks of small-cap companies
whose earnings are growing, or are expected to grow, at an accelerated rate. The
portfolio manager looks for inefficiencies in the market caused by inaccurate
expectations (e.g., earnings), focusing on companies that have:
- expanding unit volume growth
- increasing profit margins
- significant new product development efforts
- returns in excess of their cost of capital

The portfolio manager may also invest in mid-cap equity securities.

To help manage risk, the portfolio management team adheres to a strict sell
discipline. In the course of implementing its primary investment strategies, the
Fund will likely experience a high turnover rate (200% or more).

Small-cap company risk: Investing in securities of small-cap companies may
involve greater risks than investing in larger, more established issuers.
Small-cap companies generally have limited product lines, markets and financial
resources. Their securities may trade less frequently and in more limited volume
than the securities of larger, more established companies. Also, small-cap
companies are typically subject to greater changes in earnings and business
prospects than larger companies.

EQUITY FUNDS: Small Cap

Alleghany/Veredus Aggressive Growth Fund (continued)

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.
FUND PERFORMANCE
The bar chart shows the Fund's performance for
the period shown. This information may help
illustrate the risks of investing in the Fund.
As with all mutual funds, past performance does
not guarantee future performance.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1999 112.57

Best quarter: 12/98 34.88%
Worst quarter: 9/98 -22.60%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of the Russell
2000 Index, the Russell 2000 Growth Index and
the Lipper Small-Cap Growth Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Lipper
Alleghany/ Russell Small-
Veredus Russell 2000 Cap
Aggressive 2000 Growth Growth
Growth Fund Index Index Index
-------------------------------------------------------

1 year % % % %
-------------------------------------------------------

Since
Inception(1) % % % %
-------------------------------------------------------

(1)Fund's inception: June 30, 1998

EQUITY FUND: Small-Cap

Alleghany/TAMRO Small Cap Fund

INVESTMENT OBJECTIVE
The Fund seeks to provide long-term capital appreciation.

PRINCIPAL INVESTMENT STRATEGIES
The portfolio manager invest at least 65% of the Fund's assets in a blended
portfolio of growth and value stocks of small-capitalization companies. Small
capitalization stocks are those issued by companies with a market capitalization
of less than $1.5 billion. In selecting securities, the portfolio manager looks
for the following criteria:
- above average earnings growth
- unrecognized valuation
- high quality management
- solid and improving fundamentals

The portfolio manager may also invest in real estate investment trusts (REITs),
securities outside the small-cap range and cash-equivalent securities. In the
course of implementing its primary investment strategies, the Fund may
experience a relatively high turnover rate (100% to 160%).

PRINCIPAL RISKS OF INVESTING IN THIS FUND
Market risk: A fund's share price can move down over the short term in response
to stock market conditions, changes in economy and a particular company's stock
price change. An individual stock may decline in value even when stocks in
general are rising.

Value stock risk: Value investing involves buying stocks that are out of favor
and/or undervalued in comparison to their peers or their prospects for growth.
Typically, their valuation levels are lower than growth stocks. Because
different types of stocks go out of favor with investors depending on market and
economic conditions, a fund's return may be adversely affected during market
downturns and when value stocks are out of favor.

Portfolio turnover risk: Frequent trading of a fund's securities may result in a
higher than average level of capital gains and greater transaction costs of the
portfolio. A higher level of capital gains can result in more frequent
distributions with greater tax consequences. Greater transaction costs and
higher expenses as a result of portfolio turnover can negatively impact a fund's
performance.

REIT risk: Real estate investment trusts (REITs) are publicly traded entities
that invest in office buildings, apartment complexes, industrial facilities,
shopping centers and other commercial spaces. The trusts issue stocks, and most
REIT stocks trade on the major stock exchanges or over-the-counter. They have a
history of larger up and down price swings. A REIT's return may be adversely
affected when interest rates are high or rising.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

See page 32 for a chart that compares the risks of investing in this Fund
with other Alleghany Funds.

EQUITY FUNDS: Small-Cap

Alleghany/Chicago Trust Small Cap Value Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term total return.

PRINCIPAL INVESTMENT STRATEGIES
The Fund invests primarily in value stocks of small-cap U.S. companies and/or
real estate investment trusts (REITs) that the portfolio manager believes have
a:
- low price-to-earnings ratio
- low relative price-to-book ratio
- positive or improving cash flow
- good or improving balance sheet and credit history
- low stock price relative to historical levels

The portfolio manager may also invest in securities outside the small-cap range
and in cash-equivalent securities. In the course of implementing its primary
investment strategies, the Fund may experience a relatively high turnover rate
(100% to 160%).

Volatility risk: Although the Fund is a diversified portfolio, it tends to
invest in a fewer number of different stocks than many other funds.
Consequently, it may experience larger price swings than funds with greater
numbers of stocks.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

EQUITY FUNDS: Small-Cap

Alleghany/Chicago Trust Small Cap Value Fund (continued)

Value stock risk: Value investing involves buying stocks that are out of favor
and/or undervalued in comparison to their peers or their prospects for growth.
Typically, their valuation levels are lower than growth stocks. Because
different types of stocks go out of favor with investors depending on market and
economic conditions, a fund's return may be adversely affected during market
downturns and when value stocks are out of favor.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1999 -7.77

Best quarter: 6/99 12.22%
Worst quarter: 3/99 -13.28%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of the Russell
2000 Index, the Russell 2000 Value Index and
the Lipper Small-Cap Value Index.

Average Annual Total Return
(For the periods ended December 31, 1999)

Alleghany/
Chicago
Trust Russell Lipper
Small Cap Russell 2000 Small-Cap
Value 2000 Value Value
Fund Index Index Index
---------------------------------------------------------

1 year % % % %
---------------------------------------------------------

Since
Inception(1) % % % %
---------------------------------------------------------

(1)Fund's inception: November 10, 1998

EQUITY FUND: Sector

Alleghany/Veredus SciTech Fund

INVESTMENT OBJECTIVE
The Fund seeks to provide long-term capital appreciation.

PRINCIPAL INVESTMENT STRATEGIES
The portfolio manager invests primarily in the stocks of science and technology
companies whose earnings are growing, or are expected to grow, at an accelerated
rate. The portfolio manager looks for inefficiencies in the market caused by
inaccurate expectations (e.g., earnings) focusing on companies that have:
- expanding unit volume growth
- increasing profit margins
- significant new product development efforts
- returns in excess of their cost of capital

Representative industries in which the Fund may invest include computers,
networking equipment, software, semiconductors, semiconductor capital equipment,
communications equipment, communications services, Internet, enhanced media and
information services, information technology and services, medical devices,
pharmaceutical and biotechnology.

The portfolio manager may invest in all capitalizations, but will primarily
invest in small- and mid-cap securities.

To manage risk, the portfolio management team adheres to a strict sell
discipline. The Fund will normally sell a stock when it is fully valued based on
the managers' earnings projections, there is a shift in the strategic market
outlook or a better idea develops. In the course of implementing its primary
investment strategies, the Fund will likely experience a high turnover rate
(200% or more).

Sector Concentration Risk: Investments in sector-specific mutual funds may
entail greater risks than investments in funds diversified across sectors.
Because a fund may invest in a limited number of industries within a sector, a
fund may be subject to a greater level of market risk and may be more volatile.

Science and technology sector risk: Companies which compete on the basis of
proprietary science or technology face unique risks. Products or services for
given companies may or may not prove to be commercially viable. Additionally,
rapid changes in technology may result in a particular company's products or
services becoming obsolete.

EQUITY FUND: Sector

Alleghany/Veredus SciTech Fund (continued)

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

See Page 32 for a chart that compares the risks of investing in this fund with
other Alleghany Funds.

FUND PERFORMANCE
The Fund commenced operations on June 30, 2000
and does not have any significant performance
history. Performance information will be
included in the Fund's next annual or
semi-annual report.

EQUITY FUNDS: International

Alleghany/Blairlogie International Developed Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term growth of capital.

The portfolio may include securities that ultimately comprise the MSCI EAFE
Index, but it is not limited to those securities or their weightings in the
Index.

If practicable, the portfolio manager also considers the company's environmental
business practices based on the availability of such information.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

EQUITY FUNDS: International

Alleghany/Blairlogie International Developed Fund (continued)

Investing in the securities of foreign issuers involves special risks and
considerations not typically associated with investing in U.S. companies. The
following additional risks apply to the Fund.

- Political/economic risk: Changes in economic, tax or foreign investment
policies, or other political, governmental or economic actions can
adversely affect the value of the securities in a fund.

- Regulatory risk: In developed foreign countries, accounting, auditing and
financial reporting standards and other regulatory practices and
requirements are generally different from those of U.S. companies.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return*

[BAR GRAPH]

Total Return
------------

1995 16.87
1996 5.58
1997 1.63
1998 23.41
1999 20.81

*For 1995-1998, the performance figures
reflected are those of a predecessor fund,
PIMCO International Developed Fund.

Best quarter: 3/98 18.85%
Worst quarter: 9/98 -15.87%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of the MSCI
EAFE Index and the Lipper International Fund
Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/
Blairlogie Lipper
International MSCI International
Developed Fund EAFE Index Fund Index
--------------------------------------------------------------

1 year % % %
--------------------------------------------------------------

5 years % % %
--------------------------------------------------------------

Since
Inception(1) % % %
--------------------------------------------------------------

(1)Fund's inception: November 30, 1994

EQUITY FUNDS: International

Alleghany/Blairlogie Emerging Markets Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term growth of capital.

The Fund invests primarily but not exclusively in some or all of the following
emerging market countries:

If practicable, the portfolio manager also considers the company's environmental
business practices based on the availability of such information.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock market or its peers. Also, a fund could fail to meet its
investment objective.

Value stock risk: Value investing involves buying stocks that are out of favor
and/or undervalued in comparison to their peers or their prospects for growth.
Typically, their valuation levels are lower than growth stocks. Because
different types of stocks go out of favor with investors depending on market and
economic conditions, a fund's return may be adversely affected during market
downturns and when value stocks are out of favor.

EQUITY FUNDS: International

Alleghany/Blairlogie Emerging Markets Fund (continued)

Emerging markets risk: Emerging market countries typically have economic
structures that are less diverse and mature than those of developed countries.
Their political systems may be less stable, and they may have less developed
legal systems. National policies may restrict foreign investments. The small
size of the securities market can make investments illiquid. The value of the
investments may fluctuate more widely than in developed countries. Special
custody arrangements may also be needed.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return*

[BAR GRAPH]

Total Return
------------

1995 -12.85
1996 4.55
1997 -2.26
1998 -27.65
1999 59.73

*For 1995-1998, the performance figures
reflected are those of a predecessor fund,
PIMCO Emerging Markets Fund.

Best quarter: 12/99 27.94%
Worst quarter: 9/98 -25.25%

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/ MSCI Lipper
Blairlogie Emerging Emerging
Emerging Markets Markets
Markets Fund Free Index Fund Index
------------------------------------------------------------

1 year % % %
------------------------------------------------------------

5 years % % %
------------------------------------------------------------

Since
Inception(1) % % %
------------------------------------------------------------

(1)Fund's inception: October 20, 1994

EQUITY FUNDS: Balanced

Alleghany/Montag & Caldwell Balanced Fund

INVESTMENT OBJECTIVE
The Fund seeks long-term total return.

PRINCIPAL INVESTMENT STRATEGIES
The Fund invests primarily in a combination of equity, fixed income and short-
term securities. Generally, between 50% and 70% of the Fund's total assets will
be invested in equity securities, and 25% or more will be invested in fixed
income securities to provide a stable flow of income. The portfolio allocation
will vary based upon the portfolio manager's assessment of the return potential
of each asset class. For equity investments, the portfolio manager uses a
bottom-up approach to stock selection, focusing on high quality,
well-established companies that:
- have a strong history of earnings growth
- are attractively priced, relative to the company's potential for above average
long-term earnings and revenue growth
- have strong balance sheets
- have a sustainable competitive advantage
- are currently, or have the potential to become, industry leaders
- have the potential to outperform during market downturns

EQUITY FUNDS: Balanced

Alleghany/Montag & Caldwell Balanced Fund (continued)

Manager risk: If a fund manager makes errors in security selection or asset
allocation, a fund may underperform the stock or bond market or its peers. Also,
a fund could fail to meet its investment objective.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1995 29.39
1996 20.37
1997 23.49
1998 23.06
1999 12.84

Best quarter: 12/98 16.94%
Worst quarter: 9/98 -7.61%

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/ 60% S&P 500
Montag & Index/40%
Caldwell Lehman Brothers Lipper
Balanced Government Balanced
Fund Corporate Index Fund Index
---------------------------------------------------------------

1 year % % %
---------------------------------------------------------------

5 years % % %
---------------------------------------------------------------

Since
Inception(1) % % %
---------------------------------------------------------------

(1)Fund's inception: November 2, 1994

BALANCED FUNDS

Alleghany/Chicago Trust Balanced Fund

INVESTMENT OBJECTIVE
The Fund seeks growth of capital with current income by investing in a
combination of equity and fixed income securities.

PRINCIPAL INVESTMENT STRATEGIES
Generally, between 40% and 70% of the Fund's total assets will be invested in
equity securities, and between 30% and 60% will be invested in fixed income
securities. Although the prices of fixed income securities fluctuate, the steady
income flow they produce helps offset the potentially higher price volatility of
the equity securities in the portfolio. The portfolio manager can invest in
either dividend paying or non-dividend paying equity securities that offer
growth or income potential.

Asset allocation varies according to the portfolio manager's assessment of which
asset class offers the greatest potential for growth. The portfolio manager will
diversify the Fund's investments among a variety of industries.

The portfolio manager also considers the quality of company management and the
strength of its position among its competitors. In addition, the portfolio
manager assesses the long-term economic outlook and the risk/return of
securities in allocating investments among industry sectors.

The portfolio manager uses a combination of quantitative and fundamental
research, including risk/reward and credit risk analysis, in choosing investment
grade fixed income securities. The dollar-weighted average maturity of the bonds
in the Fund is normally between three and ten years. Investments may include:
- U.S. Government securities
- corporate bonds
- debentures and convertible debentures
- zero-coupon bonds
- mortgage/asset-backed securities
- Yankee bonds

BALANCED FUNDS

Alleghany/Chicago Trust Balanced Fund (continued)

Credit risk: Credit risk (also called default risk) is the risk that the issuer
of a security will not be able to make principal and interest payments on a bond
issue.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the stock or bond market or its peers. Also, a fund could fail to
meet its investment objective.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1996 16.56
1997 20.91
1998 25.13
1999 12.89

Best quarter: 12/98 14.75%
Worst quarter: 9/98 -4.02%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of 60% S&P 500
Index/40% Lehman Brothers Aggregate Bond Index
and the Lipper Balanced Fund Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/ 60% S&P
Chicago 500 Index/
Trust Lehman Brothers Lipper
Balanced Aggregate Balanced
Fund Bond Index Fund Index
-------------------------------------------------------------------------

1 year 12.89% 12.00% 8.98%
-------------------------------------------------------------------------

Since Inception(1) 18.83% 18.20% 14.56%
-------------------------------------------------------------------------

(1)Fund's inception: September 21, 1995

FIXED INCOME FUNDS

Alleghany/Chicago Trust Bond Fund

INVESTMENT OBJECTIVE
The Fund seeks high current income consistent with prudent risk of capital.

Credit risk: Credit risk (also called default risk) is the risk that the issuer
of a security will not be able to make principal and interest payments on a bond
issue.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the bond market or its peers. Also, a fund could fail to meet its
investment objective.

FIXED INCOME FUNDS

Alleghany/Chicago Trust Bond Fund (continued)

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1994 -2.83
1995 17.51
1996 3.84
1997 8.98
1998 7.69
1999 -0.43

Best quarter: 6/95 5.55%
Worst quarter: 3/94 -2.26%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of the Lehman
Brothers Aggregate Bond Index and the Lipper
Intermediate Investment Grade Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Lipper
Alleghany/ Lehman Brothers Intermediate
Chicago Trust Aggregate Investment
Bond Index Bond Index Grade Index
----------------------------------------------------------------------------

1 year % % %
----------------------------------------------------------------------------

5 years % % %
----------------------------------------------------------------------------

Since Inception(1) % % %
----------------------------------------------------------------------------

(1)Fund's inception: December 13, 1993

FIXED INCOME FUNDS

Alleghany/Chicago Trust Municipal Bond Fund

INVESTMENT OBJECTIVE
The Fund seeks a high level of current interest income exempt from federal
income tax consistent with preservation of capital by investing primarily in
intermediate-term municipal securities.
PRINCIPAL INVESTMENT STRATEGIES
To provide tax-free income for investors, the portfolio manager primarily
invests (80% or more of total assets) in municipal fixed income securities such
as revenue bonds, insured bonds, general obligation bonds and government-
guaranteed escrow bonds. Securities are typically high quality and diversified
among a broad range of states, sectors and issues. The Fund strives to maintain:
- a dollar-weighted average maturity of between three and ten years
- an intermediate duration (four to eight years)
- AA-A average quality

Credit risk: Credit risk (also called default risk) is the risk that the issuer
of a security will not be able to make principal and interest payments on a bond
issue.

Municipal securities risk: Municipal securities are backed by the entities that
issue them and/or other revenue streams. Like other fixed income securities,
changes in interest rates and the credit rating or financial condition of the
issuer affects securities' prices. Income from these investments is generally
exempt from federal income tax. Some municipal securities are insured and
guarantee the timely payment of interest and repayment of principal.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the bond market or its peers. Also, a fund could fail to meet its
investment objective.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1994 -2.24
1995 11.05
1996 3.10
1997 5.50
1998 5.51
1999 -1.75

Best quarter: 3/95 4.19%
Worst quarter: 3/94 -2.89%

The following table indicates how the Fund's
average annual returns for different calendar
periods compare to the returns of the Lehman
Brothers Five-Year General Obligations Index
and the Lipper Intermediate Municipal Funds
Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/
Chicago Lipper
Trust Lehman Brothers Intermediate
Municipal Five-Year General Municipal
Bond Fund Obligations Index Funds Index
---------------------------------------------------------------------------

1 year % % %
---------------------------------------------------------------------------

5 years % % %
---------------------------------------------------------------------------

Since Inception(1) % %(2) %
---------------------------------------------------------------------------

(1)Fund's inception: December 13, 1993

(2)As of closest available date (12/31/93)

MONEY MARKET FUND

Alleghany/Chicago Trust Money Market Fund

INVESTMENT OBJECTIVE
The Fund seeks as high a level of current interest income as is consistent with
maintaining liquidity and stability of principal.

PRINCIPAL INVESTMENT STRATEGIES
The Fund seeks to maintain a stable net asset value of $1.00 per share by
investing in a diversified portfolio of high-quality money market instruments.
The dollar-weighted average maturity of the securities in the Fund is 90 days or
less. The portfolio manager selects securities that:
- are denominated in U.S. dollars
- have high credit quality and minimal credit risk
- mature in 397 days or less

In selecting high quality securities with minimal credit risk, the portfolio
manager buys securities with the highest ratings given by national rating
agencies.

PRINCIPAL RISKS OF INVESTING IN THIS FUND
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation (FDIC) or any other government agency. Although the Fund
seeks to preserve the value of your investment at $1.00 per share and
historically has been able to do so, it is possible to lose money by investing
in the Fund. The Fund's yield will change as a result of movements in short-term
interest rates and market conditions.

Credit risk: Credit risk (also called default risk) is the risk that the issuer
of a security will not be able to make principal and interest payments on a bond
issue.

Manager risk: If a fund manager makes errors in security selection, a fund may
underperform the bond market or its peers. Also, a fund could fail to meet its
investment objective.

See page 32 for a chart that compares the risks of investing in this Fund with
other Alleghany Funds.

Calendar Year Total Return

[BAR GRAPH]

Total Return
------------

1994 3.91
1995 5.62
1996 5.07
1997 5.22
1998 5.16
1999 4.84

Best quarter: 6/95 1.42%
Worst quarter: 3/94 0.70%

The following table indicates how the Fund's
average annual returns for different calendar
periods compared to the returns of the 91-Day
U.S. Treasury Bill, IBC Donoghue's First Tier
Money Market Fund Index and iMoneyNet First
Tier Money Market Fund Index.

Average Annual Total Return
(For the periods ended December 31, 2000)

Alleghany/ iMoneyNet
Chicago Trust First Tier
Money 91 Day U.S. Money Market
Market Fund Treasury Bill Fund Index
--------------------------------------------------------------

1 year % % %
--------------------------------------------------------------

5 years % % %
--------------------------------------------------------------

Since
Inception(1) % % %
--------------------------------------------------------------

(1)Fund's inception: December 14, 1993

Fund Expenses

As an investor in the Funds, you pay certain indirect fees and expenses, which
are described in the table below.

Shareholder Fees
As a benefit of investing with Alleghany Funds, you do not incur any sales loads
or exchange fees and generally no redemption fees. However, a redemption fee of
2% is charged when you redeem shares of Alleghany/Blairlogie International
Developed Fund, Alleghany/Blairlogie Emerging Markets Fund or Alleghany/Veredus
SciTech Fund within 90 days of purchase.

Also, if you redeem shares by wire, $20 will be deducted from the amount
redeemed.

Total Net
Management Distribution Other Expense Fee Expense
Fund Fees (12b-1) Fees Expenses Ratio Waivers Ratio

Alleghany/Montag & Caldwell Growth(3) 0.67% 0.25% 0.13% 1.05% -- 1.05%
Alleghany/Chicago Trust Growth & Income 0.70 0.25 0.11 1.06 -- 1.06
Alleghany/TAMRO Large Cap Value 0.80 0.25 0.90 1.95 (0.75) 1.20(1)
Alleghany/Chicago Trust Talon 0.80 0.25 0.45 1.50 (0.20) 1.30(1)
Alleghany/Veredus Aggressive Growth 1.00 0.25 0.32 1.57 (0.17) 1.40(1)
Alleghany/TAMRO Small Cap 0.90 0.25 0.90 2.05 (0.75) 1.30
Alleghany/Chicago Trust Small Cap Value 1.00 0.25 0.30 1.55 (0.15) 1.40(1)
Alleghany/Veredus SciTech 1.00 0.25 2.05 3.30 (1.80) 1.50
Alleghany/Blairlogie International Developed(3) 0.85 0.25 0.31 1.41 (0.06) 1.35(1)
Alleghany/Blairlogie Emerging Markets(3) 0.85 0.25 0.97 2.07 (0.47) 1.60(1)
Alleghany/Montag & Caldwell Balanced(3) 0.75 0.25 0.14 1.14 -- 1.14
Alleghany/Chicago Trust Balanced 0.70 0.25 0.11 1.06 -- 1.06
Alleghany/Chicago Trust Bond(3) 0.55 0.25 0.13 0.93 (0.19) 0.74(1)
Alleghany/Chicago Trust Municipal Bond 0.60 0.10 0.50 1.20 (1.10) 0.10(2)()
Alleghany/Chicago Trust Money Market 0.40 n/a 0.11 0.51 -- 0.51

</TABLE>

(1)The above table reflects a continuation of the Advisers' contractual
undertakings to waive management fees and/or reimburse expenses exceeding the
limits shown. The ratios shown above reflect the expenses incurred during the
fiscal year ended October 31, 2000, except for Alleghany/ Veredus SciTech Fund,
Alleghany/TAMRO Large Cap Value Fund and Alleghany/TAMRO Small Cap Fund, which
are estimated. The Advisers are contractually obligated to reimburse expenses
for one year at the rates shown in the table.

(2)The above table reflects a continuation of the Adviser's voluntary
undertaking to waive management fees and/or reimburse expenses exceeding the
limit shown. The ratio shown above reflects the expenses incurred during the
fiscal year ended October 31, 2000.

(3)Alleghany/Montag & Caldwell Growth Fund, Alleghany/Chicago Trust Growth &
Income Fund, Alleghany/Blairlogie International Developed Fund,
Alleghany/Blairlogie Emerging Markets Fund, Alleghany/Montag & Caldwell Balanced
Fund and Alleghany/Chicago Trust Bond Fund each offer two classes of shares that
invest in the same portfolio of securities. Shareholders of Class N shares are
subject to a 12b-1 distribution plan; therefore, expenses and performance
figures will vary between the classes. The information set forth in the table
above and the example below relates only to Class N shares, which are offered in
this prospectus. Class I shares are offered in a separate prospectus.

Fund Expenses (continued)

Example

This hypothetical example shows the operating expenses you would incur as a
shareholder if you invested $10,000 in a fund over the time periods shown and
you redeem all your shares at the end of the period. The example assumes you
reinvested all dividends and distributions, that the average annual return was
5% and that operating expenses remained the same. The example is for comparison
purposes only and does not represent a fund's actual or future expenses and
returns.

Fund 1 year 3 years 5 years 10 years

Alleghany/Montag & Caldwell Growth $107 $334 $ 579 $1,283
Alleghany/Chicago Trust Growth & Income 108 337 585 1,294
Alleghany/TAMRO Large Cap Value 122 540 N/A N/A
Alleghany/Chicago Trust Talon 132 454 800 1,773
Alleghany/Veredus Aggressive Growth 143 479 839 1,853
Alleghany/TAMRO Small Cap 132 570 N/A N/A
Alleghany/Chicago Trust Small Cap Value 143 475 831 1,833
Alleghany/Veredus SciTech 153 847 N/A N/A
Alleghany/Blairlogie International Developed 137 440 765 1,686
Alleghany/Blairlogie Emerging Markets 163 603 1,070 2,363
Alleghany/Montag & Caldwell Balanced 116 362 628 1,386
Alleghany/Chicago Trust Balanced 108 337 585 1,294
Alleghany/Chicago Trust Bond 76 277 496 1,126
Alleghany/Chicago Trust Municipal Bond 122 381 660 1,455
Alleghany/Chicago Trust Money Market 52 164 285 640

</TABLE>

Investment Terms

The following is a list of terms with definitions that you may find helpful as
you read this prospectus.

Asset-backed securities. Securities that represent a participation in, or are
secured by and payable from, payments generated by credit cards, motor vehicle
or trade receivables and the like.

Bank deposits. Cash, check or drafts deposited in a financial institution for
credit to a customer's account. Banks differentiate between demand deposits
(checking accounts on which the customer may draw) and time deposits, which pay
interest and have a specified maturity or require 30 days' notice before
withdrawal.

Bottom-up investing. An investing approach in which securities are researched
and chosen individually with less consideration given to economic or market
cycles.

Commercial paper. Short-term fixed income securities issued by banks,
corporations and other borrowers.

Corporate bonds. Fixed income securities issued by corporations.

Debentures. Bonds or promissory notes that are secured by the general credit of
the issuer, but not secured by specific assets of the issuer.

Diversification. The practice of investing in a broad range of securities to
reduce risk.

Duration. A calculation of the average life of a bond (or portfolio of bonds)
that is a useful measure of the bond's price sensitivity to interest rate
changes. The higher the duration number, the greater the risk and reward
potential of the bond.

Expense ratio. A fund's cost of doing business, expressed as a percentage of its
assets and disclosed in a prospectus.

Foreign debt securities. Securities issued by foreign corporations and
governments. They may include:
- Eurodollar bonds. Dollar-denominated securities issued outside the U.S. by
foreign corporations and financial institutions and by foreign branches of
U.S. corporations and financial institutions
- Yankee bonds. Dollar-denominated securities issued in the U.S. by foreign
issuers

Growth investing. An investing approach that involves buying stocks of companies
that are generally industry leaders with above-average, sustainable growth
rates. Typically, growth stocks are the stocks of the fastest growing companies
in the most rapidly growing sectors of the economy. Growth stock valuation
levels (e.g., price-to-earnings ratio) will generally be higher than value
stocks.

High yield securities. Lower rated, higher yielding securities issued by
corporations. They are rated below investment-grade by national bond rating
agencies. They are considered speculative and are sometimes called "junk bonds".

IBC Donoghue First Tier Money Market Fund Index. An unmanaged index consisting
of non-government funds that hold paper considered to be of the highest credit
quality by at least one nationally recognized statistical rating organization.

Investment objective. The goal that an investor and a mutual fund seek together.
Examples include current income, long-term capital growth, etc.

Issuer. The company, municipality or government agency that issues a security,
such as a stock, bond or money market security.

Large-cap stocks. Stocks issued by large companies. Alleghany Funds defines a
large-cap company as one with a market capitalization of $5 billion or more.
Typically, large-cap companies are established, well-known companies; some may
be multinationals.

Lehman Brothers Aggregate Bond Index. An unmanaged index representing more than
5,000 taxable government, investment-grade corporate and mortgage-backed
securities.

Investment Terms (continued)

Lehman Brothers Government Corporate Index. An unmanaged index that includes
U.S. Government and investment-grade corporate securities with at least one year
to maturity.

Lehman Brothers Municipal Five-Year General Obligations Index. An unmanaged
index that tracks the returns of investment-grade tax-exempt general
obligations.

Management fee. The amount that a mutual fund pays to the investment adviser for
its services.

Mid-cap stocks. Stocks issued by mid-sized companies. Alleghany Funds defines a
mid-cap company as one with a market capitalization between $1.5 billion and $5
billion, which is similar to the range of the Standard & Poor's MidCap 400 Index
(S&P 400).

Money market securities. Short-term fixed income securities of federal and local
governments, banks and corporations.

MSCI Emerging Markets Free Index. The Morgan Stanley Capital International
Emerging Markets Free Index, a market-capitalization weighted index composed of
26 of the world's developing markets.

Municipal securities. Fixed income obligations of state and local governments.
Investments in municipal securities may support special construction projects,
such as roads or hospitals, in the municipality that issues them. Interest from
municipal bonds is usually exempt from federal taxes and from state taxes only
in the state of issue.

No-load fund. A mutual fund whose shares are sold without a sales charge and
without a 12b-1 fee of more than 0.25% per year.

Risk/reward trade-off. The principle that an investment must offer higher
potential returns as compensation for the likelihood of increased volatility.

Russell 2000 Index. An unmanaged index that contains the 2000 smallest common
stocks in the Russell 3000 (which contains the 3000 largest stocks in the U.S.
based on total market capitalization).

Small-cap stocks. Stocks issued by smaller companies. Alleghany Funds defines a
small-cap company as one with a market capitalization and/or market float of
less than $1.5 billion, which approximates the size of the largest company in
the Russell 2000 Index. The Russell 2000 is a widely recognized, unmanaged index
of common stocks of the 2,000 smallest companies in the U.S.

Standard & Poor's (S&P) 500 Index. An unmanaged index of 500 widely traded
industrial, transportation, financial and public utility stocks.

S&P 400 MidCap Index. An unmanaged market-value weighted index that consists of
400 domestic stocks chosen for market size, liquidity and industry group
representation.

Top-down investing. An investing approach in which securities are chosen by
looking at the industry or sector level based on market trends and/or economic
forecasts.

Investment Terms (continued)

12b-1 fee. A mutual fund fee, named for the SEC rule that permits it, used to
pay for distribution costs, such as advertising and commissions paid to dealers.
If a fund has a 12b-1 fee, it is found in the fee table of its prospectus.

Value investing. An investing approach that involves buying stocks that are out
of favor and/or undervalued compared to their peers. Generally, value stock
valuation levels are lower than growth stocks.

Variable rate securities. Securities that have interest rates that may be
adjusted periodically to reflect changes in interest rates. Interest rate
adjustments can either raise or lower the income generated by the securities.

More About Alleghany Funds

RISK SUMMARY
The following chart compares the principal risks of investing in each Alleghany
Fund.

Below Credit Emerging Foreign Growth Interest Issuer Liquidity
Investment Markets Securities Stock Rate
Grade
Securities

Alleghany/Montag & Caldwell Growth Fund X
Alleghany/Chicago Trust Growth & Income Fund X
Alleghany/TAMRO Large Cap Value Fund X
Alleghany/Chicago Trust Talon Fund X
Alleghany/Veredus Aggressive Growth Fund X
Alleghany/TAMRO Small Cap Fund X X
Alleghany/Chicago Trust Small Cap Value Fund X
Alleghany/Veredus SciTech Fund X X
Alleghany/Blairlogie International Developed Fund X X
Alleghany/Blairlogie Emerging Markets Fund X X X
Alleghany/Montag & Caldwell Balanced Fund X X X X
Alleghany/Chicago Trust Balanced Fund X X X X X X
Alleghany/Chicago Trust Bond Fund X X X X X
Alleghany/Chicago Trust Municipal Bond Fund X X X
Alleghany/Chicago Trust Money Market Fund X X

Manager Market Mid- Municipal Portfolio Prepayment REIT Sector
Cap Securities Turnover Concentration
Company

Alleghany/Montag & Caldwell Growth Fund X X
Alleghany/Chicago Trust Growth & Income Fund X X
Alleghany/TAMRO Large Cap Value Fund X X
Alleghany/Chicago Trust Talon Fund X X X
Alleghany/Veredus Aggressive Growth Fund X X X X
Alleghany/TAMRO Small Cap Fund X X X X
Alleghany/Chicago Trust Small Cap Value Fund X X X X X
Alleghany/Veredus SciTech Fund X X X X X
Alleghany/Blairlogie International Developed Fund X X
Alleghany/Blairlogie Emerging Markets Fund X X
Alleghany/Montag & Caldwell Balanced Fund X X
Alleghany/Chicago Trust Balanced Fund X X
Alleghany/Chicago Trust Bond Fund X X
Alleghany/Chicago Trust Municipal Bond Fund X X
Alleghany/Chicago Trust Money Market Fund X

Small- Value Volatility
Cap Stock
Company

Alleghany/Montag & Caldwell Growth Fund
Alleghany/Chicago Trust Growth & Income Fund
Alleghany/TAMRO Large Cap Value Fund X
Alleghany/Chicago Trust Talon Fund X X
Alleghany/Veredus Aggressive Growth Fund X X X
Alleghany/TAMRO Small Cap Fund X X X
Alleghany/Chicago Trust Small Cap Value Fund X X X
Alleghany/Veredus SciTech Fund X
Alleghany/Blairlogie International Developed Fund
Alleghany/Blairlogie Emerging Markets Fund X
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
</TABLE>

Defensive Strategy Risk
There may be times when a fund takes temporary positions that may not achieve
its investment objective or follow its principal investment strategies for
defensive reasons. This includes investing all or a portion of its total assets
in cash or cash equivalents, such as money market securities and repurchase
agreements. Although a fund would do this in seeking to avoid losses, following
a defensive strategy could reduce the benefit from any market upswings.

More About Alleghany Funds (continued)

OTHER INVESTMENT STRATEGIES
In addition to the primary investment strategies described in our fund
summaries, there may be times when Alleghany Funds uses secondary investment
strategies in seeking to achieve investment objectives. These strategies may
involve additional risks.

Alternative Minimum Tax (AMT) Bonds
Alleghany/Chicago Trust Municipal Bond Fund can invest in AMT bonds, which are
tax-exempt "private activity" bonds issued after August 7, 1986 whose proceeds
are partially directed to a for-profit organization. While the income from AMT
bonds is exempt from federal taxes, it is a tax preference item for purposes of
the AMT, which applies to a limited number of taxpayers.

Because of the conversion feature, the market value of convertible securities
tends to move together with the market value of the underlying stock. The value
of convertible securities is also affected by prevailing interest rates, the
credit quality of the issuer and any call provisions. There is the risk that the
issuer or the security will not be able to make principal and/or interest
payments as well as the holder of the security to not take advantage of the
convertible features in the appropriate time frame.

Derivatives
Except for Alleghany/Chicago Trust Small Cap Value Fund and Alleghany/Chicago
Trust Money Market Fund, the Funds may invest in derivatives to limit risk in a
portfolio or enhance investment return. Derivatives have a return tied to a
formula based upon an interest rate, index, price of a security, or other
measurement. Derivatives include options, futures, forward contracts and related
products.

Fixed Income Securities
The Equity Funds may invest in fixed income securities to offset the volatility
of the stock market. Fixed income securities provide a stable flow of income for
a fund.

More About Alleghany Funds (continued)

Rule 144A Securities
Rule 144A securities are restricted securities that can be sold to qualified
institutional buyers under the 1933 Act. Investing in Rule 144A securities may
increase the illiquidity of a fund's investments in the event that an adequate
trading market does not exist for these securities.

Tax-Exempt Industrial Development Bonds
Alleghany/Chicago Trust Municipal Bond Fund can invest in tax-exempt industrial
development bonds, which are usually revenue bonds that are not payable from the
unrestricted revenues of the issuer. Their credit quality is usually directly
related to the credit standing of the user of the facilities being financed.

More information about the risks associated with investing in Alleghany Funds
can also be found in the Statement of Additional Information (SAI).

More About Alleghany Funds (continued)

OTHER INVESTMENT STRATEGIES (continued)

ADRs/EDRs Asset/Mortgage Below CMOs Commercial Corporate Convertible
- Investment Paper Bonds Securities
Backed Grade and
Securities Securities Securities
(Junk of
bonds) Other
Investment
Companies

Alleghany/Montag & Caldwell Growth Fund X X X X P
Alleghany/Chicago Trust Growth & Income Fund X X X X X X X P
Alleghany/TAMRO Large Cap Value Fund X X X
Alleghany/Chicago Trust Talon Fund X X X X X P
Alleghany/Veredus Aggressive Growth Fund X X X
Alleghany/TAMRO Small Cap Fund X X X
Alleghany/Chicago Trust Small Cap Value Fund X
Alleghany/Veredus SciTech Fund X X X
Alleghany/Blairlogie International Developed
Fund X X X X X
Alleghany/Blairlogie Emerging Markets Fund X X X X X
Alleghany/Montag & Caldwell Balanced Fund X X X X X P X P
Alleghany/Chicago Trust Balanced Fund X X P X X X X P X P
Alleghany/Chicago Trust Bond Fund X P X X X X P X
Alleghany/Chicago Trust Municipal Bond Fund X X X X
Alleghany/Chicago Trust Money Market Fund X P

Debentures Derivatives Equity Fixed Foreign Preferred Repurchase
and (Options, Securities Income Securities Stocks Agreements
Convertible Forwards, Securities
Debentures Futures,
Swaps)

Alleghany/Montag & Caldwell Growth Fund X X X P X X X
Alleghany/Chicago Trust Growth & Income Fund X X P X X P X
Alleghany/TAMRO Large Cap Value Fund X P X
Alleghany/Chicago Trust Talon Fund X X P X X P X
Alleghany/Veredus Aggressive Growth Fund X X X P X X
Alleghany/TAMRO Small Cap Fund X P X
Alleghany/Chicago Trust Small Cap Value Fund X P X
Alleghany/Veredus SciTech Fund X X X P X X
Alleghany/Blairlogie International Developed
Fund X X P X P X
Alleghany/Blairlogie Emerging Markets Fund X X X P X P X
Alleghany/Montag & Caldwell Balanced Fund X X X P X P X X
Alleghany/Chicago Trust Balanced Fund X X X P X P X P X
Alleghany/Chicago Trust Bond Fund X X P X
Alleghany/Chicago Trust Municipal Bond Fund X X P
Alleghany/Chicago Trust Money Market Fund X P

Rule U.S.
144A Government
Securities Securities

Alleghany/Montag & Caldwell Growth Fund X X
Alleghany/Chicago Trust Growth & Income Fund X X
Alleghany/TAMRO Large Cap Value Fund X X
Alleghany/Chicago Trust Talon Fund X X
Alleghany/Veredus Aggressive Growth Fund X X
Alleghany/TAMRO Small Cap Fund X X
Alleghany/Chicago Trust Small Cap Value Fund X X
Alleghany/Veredus SciTech Fund X X
Alleghany/Blairlogie International Developed
Fund X X
Alleghany/Blairlogie Emerging Markets Fund X X
Alleghany/Montag & Caldwell Balanced Fund X X P
Alleghany/Chicago Trust Balanced Fund X X P
Alleghany/Chicago Trust Bond Fund X X P
Alleghany/Chicago Trust Municipal Bond Fund X X
Alleghany/Chicago Trust Money Market Fund X X

</TABLE>

P = components of a fund's primary investment strategy

Management of the Funds

The Chicago Trust Company
Chicago Trust is the Adviser to several Alleghany Funds. Investment management
teams make the investment decisions for each Fund. As of December 31, 2000,
Chicago Trust managed approximately [$11.8] billion in assets, consisting
primarily of insurance, pension and profit sharing accounts, as well as accounts
of high net worth individuals and families. Chicago Trust is an indirect and
wholly-owned subsidiary of .

Fund Name Portfolio Manager(s) Investment Experience

Alleghany/Chicago Trust Growth Bernard F. Portfolio Manager of the Fund since September 1999; Senior
& Income Fund Myszkowski Vice President and Chief Equity Officer; associated with
(subadvised by Chicago Chicago Trust and its affiliates since 1969. He has been a
Capital Management, Inc.) member of the Equity Investment Committee since 1993, and a
manager of balanced and common stock portfolios for
institutional and private family accounts in 1973. Mr.
Myszkowski received a BS from DePaul University in 1967 and
an MBA from Northwestern University in 1971. He is a
Chartered Financial Analyst.
Richard S. Drake Portfolio Manager of the Fund since February 2000; Vice
President, Director of Equity Research and Portfolio
Manager; associated with Chicago Trust since January 2000.
Mr. Drake has 17 years of investment experience; he
previously held a senior investment management position with
Duff & Phelps Investment Management, Inc. from 1995-1999.
Prior to that he was a Vice President and Senior Research
Analyst with Society Asset Management/Key Corp. Mr. Drake
received his BBA from the University of Cincinnati and his
MM from the Kellogg Graduate School of Management at
Northwestern University. He is a Chartered Financial
Analyst.
Alleghany/Chicago Trust Talon Thyra E. Zerhusen Portfolio Manager of the Fund since May 1999; Ms. Zerhusen
Fund joined the investment team of Talon Asset Management in
(subadvised by Talon Asset April 1999. Ms. Zerhusen has 23 years of investment
Management) 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. She has a
Diplom Inginieur from the Swiss Federal Institute of
Technology and an MA in Economics from the University of
Illinois.
Alleghany/Chicago Trust Small Patricia A. Portfolio Manager since the Fund's inception in 1998; joined
Cap Value Fund Falkowski Chicago Trust in 1998 as Managing Director and oversees the
(subadvised by Chicago small cap equity investment area. She was President and
Capital Management, Inc.) Chief Investment Officer of Fiduciary Management Associates,
Inc. from 1993-1998. Ms. Falkowski has more than 24 years of
investment management experience. She has a BS, Summa Cum
Laude, from Rider College and an MBA from the University of
Chicago.

Management of the Funds (continued)

Fund Name Portfolio Manager(s) Investment Experience

Alleghany/Chicago Trust Bernard F. Portfolio Manager of the Fund since September 1999; Senior
Balanced Fund Myszkowski Vice President and Chief Equity Officer; associated with
(subadvised by Chicago Chicago Trust and its affiliates since 1969. He has been a
Capital Management, Inc.) member of the Equity Investment Committee since 1993, and a
manager of balanced and common stock portfolios for
institutional and private family accounts in 1973. Mr.
Myszkowski received a BS from DePaul University in 1967 and
an MBA from Northwestern University in 1971. He is a
Chartered Financial Analyst.
Thomas J. Marthaler Portfolio Manager since the Fund's inception in 1995; Vice
President; associated with Chicago Trust and its affiliates
since 1981. He has managed fixed income investment
portfolios since 1984. Mr. Marthaler has a BA from the
University of St. Thomas and an MBA from Loyola University.
He is a Chartered Financial Analyst.
Alleghany/Chicago Trust Bond Thomas J. Marthaler Portfolio Manager since the Fund's inception in 1993; Vice
Fund President; associated with Chicago Trust and its affiliates
(subadvised by Chicago since 1981. He has managed fixed income investment
Capital Management, Inc.) portfolios since 1984. Mr. Marthaler has a BA from the
University of St. Thomas and an MBA from Loyola University.
He is a Chartered Financial Analyst.
Alleghany/Chicago Trust Dawn Daggy-Mangerson Portfolio Manager of the Fund since February 2000; she
Municipal Bond Fund joined Chicago Trust as Senior Portfolio Manager in 2000 and
(subadvised by Chicago specializes in institutional, mutual fund, tax-exempt trust
Capital Management, Inc.) fund and separate account clients. She has 12 years of
investment experience. Most recently she was a manager of
national tax-exempt fixed income mutual fund portfolios at
Invesco Funds Group from 1998 to 2000; a manager of national
and state-specific tax-exempt fixed income mutual and common
funds, national and state-specified money market mutual fund
portfolios at Nationsbank/Tradestreet Investment from
1995-1998; a manager of insurance company portfolios at
Stein Roe & Farnham from 1988-1995. She has a BS from DePaul
University.
Alleghany/Chicago Trust Money Fred H. Senft, Jr. Portfolio Manager since the Fund's inception in 1993; and
Market Fund Vice President; associated with Chicago Trust and its
(subadvised by Chicago affiliates since 1992. He specializes in money market
Capital Management, Inc.) instruments as well as mortgage- backed securities and
asset-backed securities. Mr. Senft has a BA from Lake Forest
College. He is a Chartered Financial Analyst.

</TABLE>

Fund Name Gross Management Fee

Alleghany/Chicago Trust Growth & Income Fund 0.70%
Alleghany/Chicago Trust Talon Fund 0.80%
Alleghany/Chicago Trust Small Cap Value Fund 1.00%
Alleghany/Chicago Trust Balanced Fund 0.70%
Alleghany/Chicago Trust Bond Fund 0.49%
Alleghany/Chicago Trust Municipal Bond Fund 0.60%
Alleghany/Chicago Trust Money Market Fund 0.40%

Management of the Funds (continued)

Alleghany/Chicago Trust Small Cap Value Fund
Alleghany/Chicago Trust Small Cap Value Fund began operations on November 4,
1998. Patricia A. Falkowski manages the investment program of Alleghany/Chicago
Trust Small Cap Value Fund and is primarily responsible for the day-to-day
management of the Fund's portfolio. Ms. Falkowski became a managing director at
Chicago Trust on August 24, 1998.

The investment objectives, policies and strategies of the Fund are substantially
similar in all material aspects to the UAM FMA Small Company Portfolio. Ms.
Falkowski had been Chief Investment Officer of Fiduciary Management Associates,
Inc. since 1992 and President since 1993. In that capacity, Ms. Falkowski was
the primary portfolio manager for the UAM FMA Small Company Portfolio with full
discretionary authority over the selection of investments for that fund from
July 1992 through August 1998. The UAM FMA Small Company Portfolio Institutional
Class Shares had net assets of $182.7 million as of June 30, 1998.

Average Annual Returns of UAM FMA
Small Company Portfolio
(For periods ended June 30, 1998)

UAM FMA
Small Russell
Company 2000
Portfolio(1,2) Index(1)
------------------------------------------------------------------------------

One year 23.14% 16.50%
------------------------------------------------------------------------------
Three years 25.62% 18.86%
------------------------------------------------------------------------------
Five years 19.19% 16.05%
------------------------------------------------------------------------------
Since July 1, 1992(4) 21.97% 17.65%
------------------------------------------------------------------------------

(1)Average annual total return reflects changes in share prices and reinvestment
of dividends and distributions and is net of fund expenses.
(2)The expense ratio of UAM FMA Small Company Portfolio was capped at 1.03% from
July 1, 1992 through June 30, 1998. The expense ratio of Alleghany/Chicago Trust
Small Cap Value Fund is capped at 1.40% through [December 31, 1999]. The returns
shown have been restated to reflect an expense ratio of 1.40% (consistent with
the contractual expense cap of Alleghany/Chicago Trust Small Cap Value Fund).
(3)The Russell 2000 Index is a widely recognized, unmanaged index of common
stocks of the 2,000 smallest companies in the Russell 3000 Index. The Russell
3000 Index is comprised of the 3,000 largest U.S. companies based on total
market capitalization. Each Index is adjusted to reflect reinvestment of
dividends.
(4)The inception date of the UAM FMA Small Company Portfolio was July 31, 1991.
Ms. Falkowski began managing the Fund in July 1992.

Although similar to Alleghany/Chicago Trust Small Cap Value Fund, the UAM FMA
Small Company Portfolio is a separate fund and its historical performance is not
indicative of the future performance of Alleghany/Chicago Trust Small Cap Value
Fund. Historical performance is not indicative of future performance. Share
prices and investment returns will fluctuate, reflecting market conditions as
well as changes in company-specific fundamentals of portfolio securities.

Management of the Funds (continued)

Montag & Caldwell, Inc.
Montag & Caldwell, Inc. is the Adviser to two Alleghany Funds. An investment
management team makes the investment decisions for each Fund. Ronald E.
Canakaris leads the investment management team that manages each Fund. The firm
was founded in 1945 and is an indirect wholly-owned subsidiary of
. As of December 31, 2000, Montag & Caldwell managed
approximately [$35.1] billion in assets.

Fund Name Portfolio Manager Investment Experience

Alleghany/Montag & Caldwell Ronald E. Canakaris Portfolio Manager since the Funds' inceptions in 1994;
Growth Fund Alleghany/ President and Chief Investment Officer of Montag & Caldwell.
Montag & Caldwell Balanced He has been with the firm since 1972 and is responsible for
Fund developing the firm's investment process. He has a BS and BA
from the University of Florida. Mr. Canakaris is a Chartered
Investment Counselor and a Chartered Financial Analyst.

</TABLE>

Fund Name Management Fee

Alleghany/Montag & Caldwell Growth Fund First $800 million0.80%
Over $800 million 0.60%
Alleghany/Montag & Caldwell Balanced Fund 0.75%

Management of the Funds (continued)

Veredus Asset Management LLC
Veredus Asset Management is the Adviser to Alleghany/ Veredus Aggressive Growth
Fund and Alleghany/Veredus SciTech Fund. Veredus was founded in 1998 and is
partially owned by . As of December 31, 2000, Veredus
managed approximately [$420] million in assets. Each Fund pays Veredus an annual
management fee of 1.00% of its average daily net assets.

Fund Name Portfolio Manager Investment Experience

Alleghany/Veredus Aggressive B. Anthony Weber Portfolio Manager since the Fund's inception in 1998;
Growth Fund President and Chief Investment Officer of Veredus Asset
Management LLC. He leads the team that is responsible for
the day-to-day management of the Fund. Mr. Weber was
President and Senior Portfolio Manager of SMC Capital, Inc.
from 1993-1998. He has 18 years of investment management
experience. He received a BA from Centre College of
Kentucky.
Charles P. McCurdy, Portfolio Manager of the Fund since February 2000; Executive
Jr. Vice President and Director of Research of Veredus Asset
Management LLC. Formerly employed by SMC Capital, Inc.,
Stock Yards Bank and Trust and Citizens Fidelity Capital
Management. He received his BS from the University of
Louisville in 1984. He is a Chartered Financial Analyst.
Alleghany/Veredus SciTech Fund B. Anthony Weber Portfolio Manager since the Fund's inception in June 2000;
Portfolio Manager of Alleghany/Veredus Aggressive Growth
Fund; President and Chief Investment Officer of Veredus
Asset Management LLC. He leads the team that is responsible
for the day-to-day management of the Fund. Mr. Weber was
President and Senior Portfolio Manager of SMC Capital, Inc.
from 1993-1998. He has 18 years of investment management
experience. He received his BA from Centre College of
Kentucky.
Charles P. McCurdy, Portfolio Manager since the Fund's inception in June 2000;
Jr. Portfolio Manager of Alleghany/Veredus Aggressive Growth
Fund; Executive Vice President and Director of Research of
Veredus Asset Management LLC since 1998. Mr. McCurdy was
employed by SMC Capital, Inc. from 1994-1998. Other previous
experience includes Stock Yards Bank and Trust and Citizens
Fidelity Capital Management. He received his BS from the
University of Louisville in 1984. He is a Chartered
Financial Analyst.

</TABLE>

Alleghany/Veredus Aggressive Growth Fund
B. Anthony Weber, Portfolio Manager of Alleghany/Veredus Aggressive Growth Fund,
was primarily responsible for management of certain accounts as portfolio
manager of Shelby County Trust Bank from July 1989 and as President and Senior
Portfolio Manager of SMC Capital, Inc. from 1993 through June 1998. Those
accounts had investment objectives, policies and strategies substantially
similar to those of Alleghany/ Veredus Aggressive Growth Fund.

The following performance information is the performance of a composite of those
equity accounts for which Mr. Weber had
primary responsibility for the day-to-day management from July 1989 through June
1998 (the "Managed Accounts"). As of December 31, 1997, the assets in the
Managed Accounts totaled approximately $36 million. The Managed Accounts do not
include performance of The Shelby Fund, a mutual fund for which Mr. Weber was
co-manager but did not have primary responsibility. The Managed Accounts do
include three common trust funds in operation until July 1994, when those funds
merged into The Shelby Fund. Commencing June 30, 1998, Mr. Weber was portfolio
manager for Veredus Growth Fund, which merged into Alleghany/Veredus Aggressive
Growth Fund on December 7, 1998.

Management of the Funds (continued)

Prior Performance Managed Accounts S&P 500 Index(4) Russell 2000 Index(4)

1998(1) 18.66% 17.71% 4.93%
1997 4.82 33.36 22.36
1996 14.44 22.96 16.50
1995 39.67 37.59 28.44
1994 2.46 1.32 (1.82)
1993 14.70 10.08 18.91
1992 32.98 7.64 18.41
1991 42.80 30.48 46.05
1990 (1.04) (3.12) (19.51)
1989(2) 11.67 12.99 1.47

Average Annual Returns(3) Managed Accounts S&P 500 Index(4) Russell 2000
Index(4)

One year 24.63% 30.16% 16.50%
Five years 16.38 23.08 16.05
Since July 1, 1989 19.32 18.35 13.67

(1)1998 percentages represent the rates of return for the six-month period ended
June 30, 1998.
(2)1989 percentages represent the rates of return for the six-month period ended
December 31, 1989.
(3)Average Annual Returns for the periods ended June 30, 1998, using the
Performance Presentation Standards of the Association for Investment Management
and Research (AIMR) calculation of performance (see below), which differs from
the standardized SEC calculation.
(4)The S&P 500 Index is a widely recognized, unmanaged index of market activity
based upon the aggregate performance of a selected portfolio of publicly traded
common stocks, including monthly adjustments to reflect the reinvestment of
dividends and other distributions. The Russell 2000 Index is a widely recognized
index of market activity based on the aggregate performance of small to
mid-sized publicly traded common stocks. Each Index reflects the total return of
securities comprising the Index, including changes in market prices as well as
accrued investment income, which is presumed to be reinvested. Performance
figures for each Index do not reflect deduction of transaction costs or
expenses, including management fees.

From July 1, 1989 through December 31, 1991, the performance information is
based on a quarterly, linked time-weighted rate of return calculation method.
Beginning January 1, 1992, the accounts within the composite allowed
participants to contribute on a monthly basis. Therefore, beginning January 1,
1992, the performance information is based on a monthly, linked time-weighted
rate of return calculation method. The composite rate of return is
market-weighted, reflecting the relative size of each eligible account, at the
beginning of the relevant period. Performance figures reflected are net of
management fees and net of all expenses, including transaction costs and
commissions. Results include the reinvestment of dividends and capital gains.

The investment objectives, policies and strategies of Alleghany/ Veredus
Aggressive Growth Fund are substantially similar to those of the Managed
Accounts. The performance of the accounts managed by Veredus does not represent
the historical performance of the Fund and should not be considered indicative
of future performance of the Fund. Results may differ because of, among other
things, differences in brokerage commissions, account expenses, including
management fees (the use of theFund's expense structure would have lowered the
performance results), the size of positions taken in relation to account size
and diversification of securities, timing of purchases and sales, and
availability of cash for new investments. In addition, the Managed Accounts are
not subject to certain investment limitations, diversification requirements and
other restrictions imposed by the Investment Company Act and the Internal
Revenue Code which, if applicable, may have adversely affected the performance
results of the managed accounts composite. The results for different periods may
vary.

Management of the Funds (continued)

Blairlogie Capital Management
Blairlogie Capital Management is the Adviser to two Alleghany Funds. Investment
management teams make the investment decisions for each Fund. James G. S. Smith
leads the investment team that manages each Fund. The firm was founded in 1992
and is an indirect subsidiary of . As of December 31, 2000,
Blairlogie managed approximately [$1.4 billion] in assets, primarily for
institutional clients.

Fund Name Portfolio Manager Investment Experience

Alleghany/Blairlogie International James G. S. Smith Portfolio Manager of the Funds since their inception in
Developed Fund 1993; Chief Investment Officer at Blairlogie. He has been
Alleghany/Blairlogie Emerging with the firm since 1992 and is responsible for setting
Markets Fund investment policy and determining asset allocation; he also
manages the investment team. Mr. Smith holds a BSc in
Economics from London University. He is an Associate of the
Institute of Investment Management and Research and a Fellow
of The Chartered Insurance Institute.

Fund Name Gross Management Fee

Alleghany/Blairlogie International Developed
Fund 0.85%
Alleghany/Blairlogie Emerging Markets Fund 0.85%

TAMRO Capital Partners LLC

TAMRO Capital Partners LLC is the Adviser to Alleghany/ TAMRO Large Cap Value
Fund and Alleghany/TAMRO Small
Cap Fund. TAMRO is located at 1660 Duke Street, Alexandria, VA 22314. TAMRO was
founded in 2000 and is a subsidiary of .

Fund Name Portfolio Manager Investment Experience

Alleghany/TAMRO Philip D. Tasho, CFA Portfolio Manager since the Funds' inception in November
Large Cap Value Fund 2000; Chief Investment Officer of TAMRO Capital Partners
LLC. He leads the team that is responsible for the
day-to-day management of the Funds.
Alleghany/TAMRO Most recently, Mr. Tasho served as Chief Executive Officer
Small Cap Fund and Chief Investment Officer of Riggs Investment Management
Corp. (RIMCO), from 1995 to 2000. Other experience includes
Vice President of Shawmut Investment Advisors, from 1994 to
1995, Senior Portfolio Manager and Director of Research for
Sovran Bank, Vice President and Director of Research for ASB
Capital Management, and Trust Investment Officer for First
American Bank. He has 20 years of investment management
experience. He received his MBA from George Washington
University. He is a Chartered Financial Analyst.

</TABLE>

Fund Name Gross Management Fee

Alleghany/TAMRO Large Cap Value Fund 0.80%
Alleghany/TAMRO Small Cap Fund 0.90%

Shareholder Information

OPENING AN ACCOUNT

- Read this prospectus carefully.
- Determine how much you want to invest. The minimum initial investments for
each Alleghany Fund are as follows:
o Regular accounts: $2,500
o Individual Retirement Accounts (IRAs): $500
o Uniform Gift to Minor Accounts/Uniform Transfer to Minor Accounts
(UGMA/UTMA) (custodial accounts for minors): $500
o Automatic Investment Plan (any type of account): We waive the initial
investment minimum to open an account and the monthly investment minimum is
$50.
- Complete the account application and carefully follow the instructions. If you
have any questions, please call 800 992-8151. Remember to complete the
"Purchase, Exchange and Redemption Authorization" section of the account
application to establish your account privileges. You can avoid the delay and
inconvenience of having to request these in writing at a later date.
- Make your initial investment using the following table as a guideline.

Buying Shares To open an account To add to an account ($50 minimum)

By Mail - Complete and sign your - Return the investment slip from a statement with your
application. check in the envelope provided and mail to us at the address
Alleghany Funds - Make your check payable to at the left.
P.O. Box 5164 Alleghany Funds and mail to us
Westborough, MA 01581 at the address at the left. - We accept checks, bank drafts, money orders and wires and
- We accept checks, bank drafts ACH for purchases (see "Other Features" on p. 46-47). Checks
and money orders for purchases. must be drawn on U.S. banks. There is a $20 charge for
Checks must be drawn on U.S. returned checks.
banks to avoid any fees or delays
in processing your check. - Give the following wire/ACH information to your bank:
- We do not accept third party Boston Safe Deposit & Trust
checks, which are checks made ABA #01-10-01234
payable to someone other than For: Alleghany Funds
the Funds. A/C 140414
FBO "Alleghany Fund Number"
"Your Account Number"
- We do not accept third party checks, which are checks made
payable to someone other than the Funds.
By Phone - Obtain a fund number and account - Verify that your bank or credit union is a member of the
by calling Alleghany Funds at the ACH.
800 992-8151 number at the left.
- You should complete the "Bank Account Information" section
- Instruct your bank (who may on your account application.
charge a fee) to wire or ACH the
amount of your investment. - When you are ready to add to your account, call Alleghany
Funds and tell the representative the fund name, account
- Give the following wire/ACH number, the name(s) in which the account is registered and
information to your bank: the amount of your investment.
Boston Safe Deposit & Trust
ABA #01-10-01234 - Instruct your bank (who may charge a fee) to wire or ACH
For: Alleghany Funds the amount of your investment.
A/C 140414
FBO "Alleghany Fund Number" - Give the following wire/ACH information to your bank:
"Your Account Number" Boston Safe Deposit & Trust
ABA #01-10-01234
- Return your completed and signed For: Alleghany Funds
application to: A/C 140414
Alleghany Funds FBO "Alleghany Fund Number"
P.O. Box 5164 "Your Account Number"
Westborough, MA 01581

Shareholder Information (continued)

Buying Shares To open an account To add to an account ($50 minimum)

By Internet - Download the appropriate account - Verify that your bank or credit union is a member of the
application(s) from our Web site. ACH.
www.AlleghanyFunds.com
- Complete and sign the - Complete the "Purchase, Exchange and Redemption
application(s). Make your check Authorization" section of your account application.
payable to Alleghany Funds and
mail it to the address under "By - Obtain a Personal Identification Number (PIN) from
Mail" above. Alleghany Funds for use on Alleghany Funds' Web site if you
have not already done so. To obtain a PIN, please call 800
992-8151.
- When you are ready to add to your account, access your
account through Alleghany Funds' Web site and enter your
purchase instructions in the highly secure area for
shareholders only called "Shareholder Account Access".

</TABLE>

Class I shares of certain Alleghany Funds are available through a separate
prospectus with the following initial investments:

- Montag & Caldwell Growth Fund: $5,000,000

- Alleghany/Chicago Trust Growth & Income Fund: $5,000,000

- Alleghany/Blairlogic International Developed Fund: $1,000,000

- Alleghany/Blairlogic Emerging Markets Fund: $1,000,000

- Montag & Caldwell Balanced Fund: $1,000,000

- Alleghany/Chicago Trust Bond Fund: $2,000,000

Please call 800 992-8151 to request a Class I prospectus.

You can exchange shares from one Alleghany Fund to another within the same class
of shares. All exchanges to open new accounts must meet the minimum initial
investment requirements. Exchanges may be made by mail or by phone at 800
992-8151 if you chose this option when you opened your account. For tax
purposes, each exchange is treated as a sale and a new purchase.

Alleghany Funds reserves the right to limit, impose charges upon, terminate or
otherwise modify the exchange privilege by sending written notice to
shareholders.

Selling Shares Designed for... To sell some or all of your shares...

Shareholder Information (continued)

Selling Shares Designed for... To sell some or all of your shares...

By Phone - Non-retirement accounts - For automated service 24 hours a day using your touch-tone
phone, call 800 992-8151.
800 992-8151 - Sales of up to $50,000 (for
accounts with telephone account - To place your request with a Shareholder Service
privileges) Representative, call between 9 am and 7 pm ET,
Monday - Friday.
- A check will be mailed to the name(s) and address in which
the account is registered. If you would like the check
mailed to a different address, you must write a letter of
instruction and have it signature guaranteed.
- Proceeds may also be sent by wire or ACH (see "Other
Features" on p. 46-47).
- The Funds reserve the right to refuse any telephone sales
request and may modify the procedures at any time. The Funds
make reasonable attempts to verify that telephone
instructions are genuine, but you are responsible for any
loss that you may bear from telephone requests.
By Internet - Non-retirement accounts - Complete the "Purchase, Exchange and Redemption
Authorization" section of your account application.
www.AlleghanyFunds.com
- Obtain a Personal Identification Number (PIN) from
Alleghany Funds (800 992-8151) for use on Alleghany Funds'
Web site if you have not already done so.
- When you are ready to redeem a portion of your account,
access your account through Alleghany Funds' Web site and
enter your redemption instructions in the highly secure
area for shareholders only called "Shareholder Account
Access". A check for the proceeds will be mailed to you at
the address of record.
- Proceeds may also be sent by wire or ACH. (see "Other
Features" on p. 46-47)
By Money Market Checkwriting - Regular accounts - Request the free checkwriting privilege on your
application.
- Alleghany/Chicago Trust Money
Market Fund only - Verify that the shares to be sold were purchased more than
15 days or earlier or were purchased by wire.
- You may write unlimited checks, each for $500 or more. You
cannot close an account by writing a check.
- You continue to earn dividends until checks are presented
for payment. There is a $30 charge for returned checks.
- Currently, there is no charge for this privilege, but the
Fund reserves the right to add one.
- Canceled checks are available upon request but there is a
fee to receive them.
- The Fund may cancel this privilege at any time by giving
notice to you.

</TABLE>

Shareholder Information (continued)

Selling Shares in Writing
In certain circumstances, you must make your request to sell shares in writing.
You may need to include a medallion signature guarantee (which protects you
against fraudulent orders) and additional items with your request, as shown in
the table below. We require medallion signature guarantees if:
- your address of record has changed within the past 30 days
- you are selling more than $50,000 worth of shares
- you are requesting payment other than by a check mailed to the address of
record and payable to the registered owner(s) or other than wire or ACH sent
to the bank account of the registered owner

Signature guarantees help ensure that major transactions or changes to your
account are in fact authorized by you. For example, we require a medallion
signature guarantee on written redemption requests for more than $50,000. A
medallion signature guarantee may be obtained from a domestic bank or trust
company, broker, dealer, clearing agency, savings association, or other
financial institution which is participating in a medallion program recognized
by the Securities Transfer Association. The three recognized medallion programs
are Securities Transfer Agents Medallion Program (STAMP). Stock Exchanges
Medallion Program (SEMP) and New York Stock Exchange, Inc. Medallion Signature
Program (NYSE MSP). Signature guarantees from financial institutions which are
not participating in one of these programs will not be accepted.

A notary public stamp or seal cannot be substituted for a medallion signature
guarantee.

Seller Requirements for Written Requests

Owners of individual, joint, sole - Letter of instruction
proprietorship, UGMA/UTMA, or general - On the letter, the signatures and titles of all persons
partner accounts authorized to sign for the account, exactly as the account
is registered
- Signature guarantee, if applicable (see above)
Owners of corporate or association - Letter of instruction
accounts - Corporate resolution certified within the past 12 months
- On the letter, the signatures and titles of all persons
authorized to sign for the account, exactly as the account
is registered
- Signature guarantee, if applicable (see above)
Owners or trustees of trust accounts - Letter of instruction
- On the letter, the signature of the trustee(s)
- If the names of all trustees are not registered on the
account, a copy of the trust document certified within the
past 12 months
- Signature guarantee, if applicable (see above)
Joint tenancy shareholders whose co- - Letter of instruction signed by the surviving tenant
tenants are deceased - Copy of death certificate
- Signature guarantee, if applicable (see above)
Executors of shareholder estates - Letter of instruction signed by executor
- Copy of order appointing executor
- Signature guarantee, if applicable (see above)
Administrators, conservators, - Call 800 992-8151 for instructions
guardians and other sellers or
account types not listed above
IRA accounts - IRA distribution request form completed and signed. Call
800 992-8151 for a form.

</TABLE>

Other Features
The following other features are also available to buy and sell shares of the
Funds.

Shareholder Information (continued)

- Please remember that if you request redemptions by wire, $20 will be deducted
from the amount redeemed. Your bank also may charge a fee.

Redemptions in Kind
The Funds have elected, under Rule 18f-1 of the Investment Company Act of 1940,
as amended, to pay sales proceeds in cash up to $250,000 or 1% of each Fund's
total value during any 90-day period for any one shareholder, whichever is less.
Larger redemptions may be detrimental to existing shareholders. While we intend
to pay all sales proceeds in cash, we reserve the right to make higher payments
to you in the form of certain marketable securities of the Fund. This is called
a "redemption in kind." You may need to pay certain sales charges related to a
redemption in kind, such as brokerage commissions, when you sell the securities.

Involuntary Redemptions
To reduce expenses, we may sell your shares and close your account if the value
of your account falls below $50. We will give you 30 days' notice before we sell
your shares. This gives you an opportunity to purchase enough shares to raise
your account value to the appropriate minimum to avoid closing the account.

TRANSACTION POLICIES
Calculating Share Price
When you buy, exchange or sell shares, the net asset value (NAV) is used to
price your purchase or sale. The NAV for each Fund is determined each business
day at the close of regular trading on the New York Stock Exchange (NYSE)
(typically 4 p.m. Eastern Time (ET)) by dividing a class's net assets by the
number of its shares outstanding. Generally, market quotes are used to price
securities. If accurate market quotations are not available, securities are
valued at fair value in accordance with guidelines adopted by the Board of
Trustees.

Quotations of foreign securities denominated in foreign currency are converted
to U.S. dollar equivalents using foreign exchange quotations received from
independent dealers. Events affecting the values of portfolio securities that
occur between the time their prices are determined and the close of regular
trading on the NYSE may not be reflected in the calculation of net asset value.
If events materially affecting the value of such securities occur during such
period, then these securities may be valued at fair value as determined by the
Adviser and in accordance with guidelines adopted by the Board of Trustees.

Execution of Requests
Each Fund is open on each business day that the NYSE is open for trading. The
NYSE is not open on weekends or national holidays. Buy and sell requests are
executed at the NAV next calculated after Alleghany Funds or an authorized
broker or designee receives your mail or telephone request in proper form. Under
normal circumstances, purchase orders and redemption requests for
Alleghany/Chicago Trust Money Market Fund must be received by 1:00 p.m. ET for
same day processing. On days when the Federal Reserve Cash Settlement System
closes earlier than normal, this time may be accelerated. Sales proceeds are
normally sent on the next business day, but are always sent within seven days of
receipt of a request in proper form. Brokers and their authorized designees are
responsible for forwarding purchase orders and redemption requests to the Funds.

Alleghany Funds reserves the right to:
- reject any purchase order
- suspend the offering of fund shares
- change the initial and additional investment minimums or waive these minimums
for any investor
- delay sending you your sales proceeds for up to 15 days if you purchased
shares by check. A minimum $20 charge will be assessed if any check used to
purchase shares is returned.

Money Market Trading
For Alleghany/Chicago Trust Money Market Fund, your purchase will be processed
at the net asset value calculated after your investment has been converted to
federal funds. On days when the NYSE is open for trading and Federal banks are
closed (currently, Columbus Day and Veterans Day), conversion into federal funds
does not occur until the next business day. If you invest by check or a
non-federal funds wire, you should allow one business day after receipt for
conversion into federal funds. Checks must be made payable to "Alleghany Funds."

Shareholder Information (continued)

Redemption Fees
Alleghany/Blairlogie International Developed Fund, Alleghany/Blairlogie Emerging
Markets Fund and Alleghany/Veredus SciTech Fund can experience substantial price
fluctuations and are intended for long-term investors. Short-term "market
timers" who engage in frequent purchases and redemptions can disrupt the Funds'
investment programs and create significant additional transaction costs that are
borne by all shareholders. For these reasons, Alleghany/Blairlogie International
Developed Fund, Alleghany/Blairlogie Emerging Markets Fund and Alleghany/Veredus
SciTech Fund assess a 2% fee on redemptions (including exchanges) of fund shares
held for less than 90 days.

Redemption fees are paid to the respective Fund to help offset transaction costs
and to protect the Funds' long-term shareholders. Each Fund will use the
"first-in, first-out" (FIFO) method to determine the 90-day holding period.
Under this method, the date of the redemption or exchange will be compared to
the earliest purchase date of shares held in the account. If this holding period
is less than 90 days, the fee will be charged. The fee does not apply to any
shares purchased through reinvested distributions (dividends and capital gains).

ACCOUNT POLICIES AND DIVIDENDS
Account Statements
In general, you will receive quarterly account statements. In addition, you will
also receive account statements:
- after every transaction that affects your account balance (except for dividend
reinvestments, automatic investment plans or systematic withdrawal plans)
- after any change of name or address of the registered owner(s)

Mailings to Shareholders
To help reduce fund expenses and environmental waste, Alleghany Funds combines
mailings for multiple accounts going to a single household by delivering fund
financial reports (annual and semi-annual reports, prospectuses, etc.) in a
single envelope. If you do not want us to continue consolidating your fund
mailings and would prefer to receive separate mailings with multiple copies of
fund reports, please call one of our Shareholder Service Representatives at 800
992-9151. We will continue to distribute reports to you in separate mailings.

Dividends
The following table shows the Funds' distribution schedule.

Distribution Schedule

Funds Dividends Capital Gains Distribution

Equity - Declared and paid quarterly - Distributed at least once a year, in December
International Equity - Declared and paid annually - Distributed at least once a year, in December
Balanced - Declared and paid quarterly - Distributed at least once a year, in December
Fixed Income
- Distributed at least once a year, in December
Alleghany/Chicago Trust - Declared and paid monthly
Bond Fund
Alleghany/Chicago Trust - Declared daily and paid monthly
Municipal Bond Fund
Money Market - Declared daily and paid monthly - Distributed at least once a year, in December
</TABLE>

Dividend Reinvestments
Many investors have their dividends reinvested in additional shares of the same
Fund. If you choose this option, or if you do not indicate a choice, your
dividends will be automatically reinvested on the dividend payable date. You can
also choose to have a check for your dividends mailed to you by choosing this
option on your account application.

Shareholder Information (continued)

ADDITIONAL INVESTOR SERVICES
Automatic Investment Plan
The Automatic Investment Plan allows you to set up a regular transfer of funds
from your bank account to the Alleghany Fund(s) of your choice. You determine
the amount of your investment, and you can terminate the program at any time. To
take advantage of this feature:
- complete the appropriate sections of the account application
- if you are using the Automatic Investment Plan to open an account, make a
check ($50 minimum) payable to "Alleghany Funds." Mail your check and
application to Alleghany Funds, P.O. Box 5164, Westborough, MA 01581.

Alleghany Funds Web Site
Alleghany Funds maintains a Web site located at http://www.AlleghanyFunds.com.
You can purchase, exchange and redeem shares, and access information such as
your account balance and the Funds' NAVs through our Web site. In order to
engage in shareholder transactions on our Web site, you must obtain a Personal
Identification Number (PIN) by calling us at 800 992-8151. One of our
Shareholder Service Representatives will ask a series of questions to verify
your identify and assign a temporary PIN that will allow you to log onto
Shareholder Account Access on our site. You will be prompted to change the
temporary PIN to a new PIN, which will be known only to you, and then you may
access your account information. You may also need to have bank account
information, wire instructions, Automated Clearing House (ACH) instructions or
other options established on your account.

Systematic Withdrawal Plan
This plan may be used for periodic withdrawals (at least $50 by check or ACH)
from your account. To take advantage of this feature:
- you must have at least $50,000 in your account
- determine the schedule: monthly, quarterly, semi-annually or annually
- call 800 992-8151 to add a systematic withdrawal plan to your account

Retirement Plans
Alleghany Funds offers a range of retirement plans, including Traditional, Roth
and Education IRAs, SIMPLE IRAs, SEP IRAs, 401(k) plans, money purchase pension
and profit-sharing plans. Using these plans, you can invest in any Alleghany
Fund with a low minimum investment of $500. There is no annual maintenance fee
for IRAs. To find out more, call Alleghany Funds at 800 992-8151.

DISTRIBUTION PLAN 12b-1 FEES
To pay for the cost of promoting the Funds and servicing your shareholder
account, the Funds, except for Alleghany/Chicago Trust Money Market Fund, have
adopted a Rule 12b-1 distribution plan. Under this plan, an annual fee of not
more than 0.25% is paid out of each Fund's average daily net assets to reimburse
the distributor for certain expenses associated with the distribution of fund
shares. Over time, these fees may increase the cost of your investment and may
cost more than paying other types of sales charges.

PORTFOLIO TRANSACTIONS AND BROKERAGE COMMISSIONS
Alleghany Funds attempts to obtain the best possible price and most favorable
execution of transactions in its portfolio securities. Under policies
established by the Board of Trustees, there may be times when Alleghany Funds
may pay one broker-dealer a commission that is greater than the amount that
another broker-dealer may charge for the same transaction. The Advisers
generally determine in good faith if the commission paid was reasonable in
relation to the brokerage or research services provided by the broker-dealer. In
selecting and monitoring broker-dealers and negotiating commissions, Alleghany
Funds considers a broker-dealer's reliability, the quality of its execution
services and its financial condition. In executing portfolio transactions,
preference may be given to brokers who have sold shares of the Funds.

Dividends, Distributions and Taxes

Certain tax considerations may apply to your investment in Alleghany Funds. If
you have any tax-related questions relating to your own investments, please
consult your tax adviser. Further information regarding the tax consequence of
investing in the Funds is included in the Statements of Additional Information.

- Distributions of any net investment income are taxable to you as ordinary
income.

- Distributions of net long-term capital gain (net long-term capital gain less
any net short-term capital loss) are taxable as long-term capital gain
regardless of how long you may have held shares of a fund. In contrast,
distributions of net short-term capital gain (net short-term capital gain less
any long-term capital loss) are taxable as ordinary income regardless of how
long you may have held shares of a fund.

- Each Fund is obligated by law to withhold 31% of Fund distributions if you do
not provide complete and correct taxpayer identification information.

Financial Highlights

These financial highlights tables are to help you understand the Funds'
financial performance. The following schedules present financial highlights for
one share of the Funds outstanding throughout the periods indicated. The total
returns in the tables represent the rate that an investor would have earned or
lost on an investment in a Fund (assuming reinvestment of all dividends and
distributions). For all Funds for the fiscal year ended October, 31, 2000, this
information has been audited by KPMG LLP, whose report, along with the Funds'
financial statements, is included in the Funds' Annual Report, which is
available upon request. For Alleghany/Blairlogie International Developed Fund
and Alleghany/Blairlogie Emerging Markets Fund, information prior to June 30,
1998 has been audited by PricewaterhouseCoopers LLP.

ALLEGHANY/MONTAG & CALDWELL GROWTH FUND

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96

Net Asset Value, Beginning of Period $33.15 $26.49 $22.68 $17.08 $13.16
---------- ---------- ---------- -------- -------
Income from Investment Operations
Net investment income (loss) (0.04) (0.05) (0.05) --
Net realized and unrealized gain on investments 7.64 4.07 5.79 3.93
---------- ---------- ---------- -------- -------
Total from investment operations 7.60 4.02 5.74 3.93
---------- ---------- ---------- -------- -------
Less Distributions
Distributions from and in excess
of net investment income -- -- -- (0.01)
Distributions from net realized
gain on investments (0.94) (0.21) (0.14) --
---------- ---------- ---------- -------- -------
Total distributions (0.94) (0.21) (0.14) (0.01)
---------- ---------- ---------- -------- -------
Net increase in net asset value 6.66 3.81 5.60 3.92
---------- ---------- ---------- -------- -------
Net Asset Value, End of Period $33.15 $26.49 $22.68 $17.08
========== ========== ========== ======== =======
Total Return 29.34% 17.90% 33.82% 29.91%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $1,612,796 $1,004,356 $479,557 $166,243
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(1) 1.05% 1.12% 1.24% 1.32%
After reimbursement of expenses by Adviser(1) 1.05% 1.12% 1.23% 1.28%
Ratio of net investment income
to average net assets:
Before reimbursement of expenses by Adviser(1) (0.16)% (0.22)% (0.38)% (0.10)%
After reimbursement of expenses by Adviser(1) (0.16)% (0.22)% (0.37)% (0.06)%
Portfolio Turnover(2) 31.59% 29.81% 18.65% 26.36%

</TABLE>

(1)Annualized
(2)Not annualized.

Financial Highlights (continued)

ALLEGHANY/CHICAGO TRUST GROWTH & INCOME FUND

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96

Net Asset Value, Beginning of Period $27.71 $23.06 $19.73 $16.17 $12.90
-------- -------- -------- -------- --------
Income from Investment Operations
Net investment income (loss) (0.06) (0.02) 0.08 0.11
Net realized and unrealized gain on investments 6.14 4.73 3.91 3.34
-------- -------- -------- -------- --------
Total from investment operations 6.08 4.71 3.99 3.45
-------- -------- -------- -------- --------
Less Distributions
Distributions from and in excess
of net investment income -- (0.01) (0.09) (0.11)
Distributions from net realized
gain on investments (1.43) (1.37) (0.34) (0.07)
-------- -------- -------- -------- --------
Total distributions (1.43) (1.38) (0.43) (0.18)
-------- -------- -------- -------- --------
Net increase in net asset value 4.65 3.33 3.56 3.27
-------- -------- -------- -------- --------
Net Asset Value, End of Period $27.71 $23.06 $19.73 $16.17
======== ======== ======== ======== ========
Total Return 27.71% 25.43% 25.16% 26.98%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $490,189 $367,666 $274,608 $205,133
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(1) 1.06% 1.08% 1.12% 1.15%
After reimbursement of expenses by Adviser(1) 1.06% 1.08% 1.07%(2) 1.00%
Ratio of net investment income
to average net assets:
Before reimbursement of expenses by Adviser(1) (0.25)% (0.11)% 0.36% 0.62%
After reimbursement of expenses by Adviser(1) (0.25)% (0.11)% 0.41% 0.77%
Portfolio Turnover 28.93% 34.21% 30.58% 25.48%

</TABLE>

(1)Annualized
(2)The Adviser's expense reimbursement level, which affects the net expense
ratio, changed from 1.00% to 1.10% on February 28, 1997.

Financial Highlights (continued)

ALLEGHANY/CHICAGO TRUST TALON FUND

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96

Net Asset Value, Beginning of Period $13.45 $13.16 $17.60 $14.39 $12.07
------- ------- ------- ------- -------
Income from Investment Operations
Net investment income (loss) (0.05) 0.07 0.11 0.04
Net realized and unrealized gain (loss) on investments 0.34 (1.59) 4.38 3.01
------- ------- ------- ------- -------
Total from investment operations 0.29 (1.52) 4.49 3.05
------- ------- ------- ------- -------
Less Distributions
Distributions from and in excess
of net investment income --(a) (0.09) (0.09) (0.03)
Distributions from net realized
gain on investments -- (2.83) (1.19) (0.70)
------- ------- ------- ------- -------
Total distributions -- (2.92) (1.28) (0.73)
------- ------- ------- ------- -------
Net increase (decrease) in net asset value 0.29 (4.44) 3.21 2.32
------- ------- ------- ------- -------
Net Asset Value, End of Period $13.45 $13.16 $17.60 $14.39
======= ======= ======= ======= =======
Total Return 2.32% (10.54)% 33.47% 26.51%

Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $17,856 $22,728 $28,460 $17,418
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(1) 1.50% 1.46% 1.67% 1.98%
After reimbursement of expenses by Adviser(1) 1.30% 1.30% 1.30% 1.30%
Ratio of net investment income
to average net assets:
Before reimbursement of expenses by Adviser(1) (0.50)% 0.30% 0.34% (0.38)%
After reimbursement of expenses by Adviser(1) (0.30)% 0.46% 0.71% 0.30%
Portfolio Turnover 101.44% 78.33% 112.72% 126.83%
</TABLE>

(1)Annualized
(a)Represents less than $0.01 per share

Financial Highlights (continued)

ALLEGHANY/VEREDUS AGGRESSIVE GROWTH FUND

Year Year Period
Ended Ended Ended
10/31/00 10/31/99 10/31/98*

Net Asset Value, Beginning of Period $16.60 $ 8.62 $10.00
------- ------- -------
Income from Investment Operations
Net investment income (loss) (0.08) --(a)
Net realized and unrealized gain (loss) on investments 8.06 (1.38)
------- -------
Total from investment operations 7.98 (1.38)
------- -------
Net Asset Value, End of Period $16.60 $ 8.62
======= =======
Total Return(1) 92.92% (13.80)%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $57,282 $12,674
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(2) 1.58% 1.54%
After reimbursement of expenses by Adviser(2) 1.41%(3) 1.50%
Ratio of net investment income to average net assets:
Before reimbursement of expenses by Adviser(2) 1.05% (0.06)%
After reimbursement of expenses by Adviser(2) (0.88)% (0.02)%
Portfolio Turnover(1) 204.26% 111.52%

</TABLE>

*Alleghany/Veredus Aggressive Growth Fund commenced operations on June 30, 1998.
(1)Not Annualized
(2)Annualized
(3)The Adviser fee, which affects the net expense ratio, changed from 1.50% to
1.00% on December 4, 1998.
(a)Represents less than $0.01 per share.

Financial Highlights (continued)

ALLEGHANY/CHICAGO TRUST SMALL CAP VALUE FUND

Period Period
Ended Ended
10/31/00 10/31/99*

Net Asset Value, Beginning of Period $9.18 $10.00
------- -------
Income from Investment Operations
Net investment income 0.04
Net realized and unrealized loss on investments (0.85)
-------
Total from investment operations (0.81)
-------
Less Distributions
Distributions from and in excess of net investment income (0.01)
Total distributions (0.01)
-------
Net increase (decrease) in net asset value (0.82)
-------
Net Asset Value, End of Period $ 9.18
=======
Total Return(1) (8.07)%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $42,478
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(2) 1.55%
After reimbursement of expenses by Adviser(2) 1.40%
Ratio of net investment income to average net assets:
Before reimbursement of expenses by Adviser(2) 0.36%
After reimbursement of expenses by Adviser(2) 0.51%
Portfolio Turnover(1) 156.55%
</TABLE>

*Alleghany/Chicago Trust Small Cap Value Fund commenced operations on November
10, 1998.
(1)Not Annualized
(2)Annualized

Financial Highlights (continued)

ALLEGHANY/BLAIRLOGIE INTERNATIONAL DEVELOPED FUND

Six Ten Eight
Year Months Months Year Year Months
Ended Ended Ended Ended Ended Ended
10/31/00 10/31/99 4/30/99 6/30/98 6/30/97 6/30/96

Net Asset Value, Beginning of Period $13.37 $12.70 $14.30 $13.05 $12.51 $11.73
------ ------ ------ ------ ------ ------
Income from Investment Operations
Net investment income (loss) 0.06 (0.02) 0.17 0.06 0.69
Net realized and unrealized gain on investments 0.61 0.16 1.69 1.09 0.72
------ ------ ------ ------ ------ ------
Total from investment operations 0.67 0.14 1.86 1.15 1.41
------ ------ ------ ------ ------ ------
Less Distributions
Distributions from and in excess
of net investment income -- -- (0.03) -- (0.42)
Distributions from net realized
gain on investments -- (1.74) (0.58) (0.61) (0.21)
------ ------ ------ ------ ------ ------
Total distributions -- (1.74) (0.61) (0.61) (0.63)
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value 0.67 (1.60) 1.25 0.54 0.78
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $13.37 $12.70 $14.30 $13.05 $12.51
====== ====== ====== ====== ====== ======
Total Return(1) 5.35% 1.05% 15.33% 9.77% 12.33%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $7,516 $5,278(3) $6,299 $2,302 $5,624
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(2) 1.41% 1.41% 1.36% 1.38% 1.35%
After reimbursement of expenses by Adviser(2) 1.35% 1.41% 1.36% 1.38% 1.35%
Ratio of net investment income
(loss) to average net assets:
Before reimbursement of expenses by Adviser(2) 0.95% (0.21)% 1.31% 0.52% 1.04%
After reimbursement of expenses by Adviser(2) 1.01% (0.21)% 1.31% 0.52% 1.04%
Portfolio Turnover(1) 28.91% 36.00% 60.00% 77.00% 60.00%

</TABLE>

(1)Not Annualized
(2)Annualized
(3)Net assets at end of period do not reflect Class A, B, or C net assets prior
to April 30, 1999.

Financial Highlights (continued)

ALLEGHANY/BLAIRLOGIE EMERGING MARKETS FUND

Six Ten Eight
Year Months Months Year Year Months
Ended Ended Ended Ended Ended Ended
10/31/00 10/31/99 4/30/99 6/30/98 6/30/97 6/30/96

Net Asset Value, Beginning of Period $10.75 $10.42 $10.14 $13.95 $12.63 $11.24
------ ------ ------ ------ ------ ------
Income from Investment Operations
Net investment income 0.05 0.05 0.09 -- 0.02
Net realized and unrealized gain (loss)
on investments 0.28 0.23 (3.90) 1.32 1.40
------ ------ ------ ------ ------ ------
Total from investment operations 0.33 0.28 (3.81) 1.32 1.42
------ ------ ------ ------ ------ ------
Less Distributions
Distributions from and in excess
of net investment income -- -- -- -- (0.03)
Distributions from net realized
gain on investments -- -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions -- -- -- -- (0.03)
------ ------ ------ ------ ------ ------
Net increase (decrease) in net asset value 0.33 0.28 (3.81) 1.32 1.39
------ ------ ------ ------ ------ ------
Net Asset Value, End of Period $10.75 $10.42 $10.14 $13.95 $12.63
====== ====== ====== ====== ====== ======
Total Return(1) 3.26% 2.76% (27.31)% 10.45% 12.70%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $1,729 $961(3) $1,339 $117 $368
Ratio of expenses to average net assets:
Before reimbursement of expenses by
Adviser(2) 2.07% 1.68% 1.65% 1.69% 1.61%
After reimbursement of expenses by Adviser(2) 1.60% 1.68% 1.65% 1.69% 1.61%
Ratio of net investment income
to average net assets:
Before reimbursement of expenses by
Adviser(2) 0.41% 0.69% 0.81% 0.02% 0.18%
After reimbursement of expenses by Adviser(2) 0.88% 0.69% 0.81% 0.02% 0.18%
Portfolio Turnover(1) 46.93% 38.00% 52.00% 74.00% 74.00%

</TABLE>

(1)Not Annualized
(2)Annualized
(3)Net assets at end of period do not reflect Class A, B, or C net assets prior
to April 30, 1999.

Financial Highlights (continued)

ALLEGHANY/MONTAG & CALDWELL BALANCED FUND

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96

Net Asset Value, Beginning of Period $19.41 $17.60 $16.01 $14.29 $12.12
------- -------- -------- ------- -------
Income from Investment Operations
Net investment income 0.29 0.27 0.25 0.27
Net realized and unrealized gain on investments 2.73 1.97 2.93 2.17
-------- -------- ------- -------
Total from investment operations 3.02 2.24 3.18 2.44
-------- -------- ------- -------
Less Distributions
Distributions from and in excess
of net investment income (0.27) (0.27) (0.25) (0.27)
Distributions from net realized
gain on investments (0.94) (0.38) (1.21) --
-------- -------- ------- -------
Total distributions (1.21) (0.65) (1.46) (0.27)
-------- -------- ------- -------
Net increase in net asset value 1.81 1.59 1.72 2.17
-------- -------- ------- -------
Net Asset Value, End of Period $19.41 $17.60 $16.01 $14.29
======== ======== ======= =======
Total Return(1) 17.83% 14.46% 24.26% 20.37%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $160,286 $158,398 $82,719 $31,473
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(2) 1.14% 1.18% 1.33% 1.58%
After reimbursement of expenses by Adviser(2) 1.14% 1.18% 1.25% 1.25%
Ratio of net investment income
to average net assets:
Before reimbursement of expenses by Adviser(2) 1.54% 1.67% 1.70% 1.83%
After reimbursement of expenses by Adviser(2) 1.54% 1.67% 1.78% 2.16%
Portfolio Turnover(1) 34.79% 59.02% 28.13% 43.58%

</TABLE>

(1)Not Annualized
(2)Annualized

Financial Highlights (continued)

ALLEGHANY/CHICAGO TRUST BALANCED FUND

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96

Net Asset Value, Beginning of Period $13.04 $12.03 $11.06 $ 9.60 $ 8.43
------- -------- -------- -------- --------
Income from Investment Operations
Net investment income 0.27 0.27 0.28 0.27
Net realized and unrealized gain on investments 1.71 1.65 1.60 1.16
-------- -------- -------- --------
Total from investment operations 1.98 1.92 1.88 1.43
-------- -------- -------- --------
Less Distributions
Distributions from and in excess
of net investment income (0.26) (0.27) (0.28) (0.26)
Distributions from net realized
gain on investments (0.71) (0.68) (0.14) --
-------- -------- -------- --------
Total distributions (0.97) (0.95) (0.42) (0.26)
-------- -------- -------- --------
Net increase in net asset value 1.01 0.97 1.46 1.17
-------- -------- -------- --------
Net Asset Value, End of Period $13.04 $12.03 $11.06 $ 9.60
======== ======== ======== ========
Total Return(1) 17.26% 18.50% 20.10% 17.21%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $294,426 $219,362 $187,993 $156,703
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(2) 1.06% 1.08% 1.13% 1.17%
After reimbursement of expenses by Adviser(2) 1.06% 1.08% 1.07%(3) 1.00%
Ratio of net investment income
to average net assets:
Before reimbursement of expenses by Adviser(2) 2.13% 2.30% 2.70% 2.79%
After reimbursement of expenses by Adviser(2) 2.13% 2.30% 2.76% 2.96%
Portfolio Turnover(1) 25.05% 40.28% 34.69% 34.29%

</TABLE>

(1)Not Annualized
(2)Annualized
(3)The Adviser's expense reimbursement level, which affects the net expense
ratio, changed from 1.00% to 1.10% on February 28, 1997.

Financial Highlights (continued)

ALLEGHANY/CHICAGO TRUST BOND FUND

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96

Net Asset Value, Beginning of Period $9.71 $10.27 $10.13 $ 9.89 $ 9.94
------ -------- -------- -------- -------
Income from Investment Operations
Net investment income 0.61 0.60 0.61 0.60
Net realized and unrealized gain (loss) on investments (0.51) 0.15 0.23 (0.05)
-------- -------- -------- -------
Total from investment operations 0.10 0.75 0.84 0.55
-------- -------- -------- -------
Less Distributions
Distributions from and in excess
of net investment income (0.61) (0.61) (0.60) (0.60)
-------- -------- -------- -------
Distributions from net realized
gain on investments (0.05) -- -- --
-------- -------- -------- -------
Total distributions (0.66) (0.61) (0.60) (0.60)
-------- -------- -------- -------
Net increase (decrease) in net asset value (0.56) 0.14 0.24 (0.05)
-------- -------- -------- -------
Net Asset Value, End of Period $ 9.71 $10.27 $10.13 $ 9.89
======== ======== ======== =======
Total Return 1.02% 7.66% 8.84% 5.76%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $133,408 $160,561 $120,532 $72,211
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(1) 0.93% 0.96% 1.02% 1.10%
After reimbursement of expenses by Adviser(1) 0.80%(2) 0.80% 0.80% 0.80%*
Ratio of net investment income
to average net assets:
Before reimbursement of expenses by Adviser(1) 5.91% 5.79% 6.02% 5.89%
After reimbursement of expenses by Adviser(1) 6.04% 5.95% 6.24% 6.19%
Portfolio Turnover 49.83% 45.29% 17.76% 41.75%
</TABLE>

(1)Annualized
(2)The Adviser's expense reimbursement level, which affects the net expense
ratio, changed from 0.80% to 0.74% on February 15, 2000.

Financial Highlights (continued)

ALLEGHANY/CHICAGO TRUST MUNICIPAL BOND FUND

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96

Net Asset Value, Beginning of Period $9.73 $10.36 $10.19 $10.06 $10.08
----- ------- ------- ------- -------
Income from Investment Operations
Net investment income 0.46 0.44 0.38 0.38
Net realized and unrealized gain (loss) on investments (0.63) 0.17 0.12 (0.02)
------- ------- ------- -------
Total from investment operations (0.17) 0.61 0.50 0.36
------- ------- ------- -------
Less Distributions
Distributions from and in excess
of net investment income (0.46) (0.44) (0.37) (0.38)
------- ------- ------- -------
Total distributions (0.46) (0.44) (0.37) (0.38)
------- ------- ------- -------
Net increase (decrease) in net asset value (0.63) 0.17 0.13 (0.02)
------- ------- ------- -------
Net Asset Value, End of Period $ 9.73 $10.36 $10.19 $10.06
======= ======= ======= =======
Total Return (1.77)% 6.17% 5.13% 3.59%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $17,219 $13,210 $12,379 $11,186
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(1) 1.20% 1.41% 1.64% 1.53%
After reimbursement of expenses by Adviser(1) 0.10% 0.35%(2) 0.90% 0.90%
Ratio of net investment income
to average net assets:
Before reimbursement of expenses by Adviser(1) 3.45% 3.22% 3.00% 3.11%
After reimbursement of expenses by Adviser(1) 4.55% 4.28% 3.74% 3.74%
Portfolio Turnover 22.83% 34.33% 16.19% 27.47%
</TABLE>

(1)Annualized
(2)The Adviser's expense reimbursement level, which affects the net expense
ratio, changed from 0.90% to 0.10% on February 27, 1998.

Financial Highlights (continued)

ALLEGHANY/CHICAGO TRUST MONEY MARKET FUND

Year Year Year Year Year
Ended Ended Ended Ended Ended
10/31/00 10/31/99 10/31/98 10/31/97 10/31/96

Net Asset Value, Beginning of Period $1.00 $1.00 $1.00 $1.00 $1.00
------ -------- -------- -------- --------
Income from Investment Operations
Net investment income 0.05 0.05 0.05 0.05
-------- -------- -------- --------
Less distributions from net investment income (0.05) (0.05) (0.05) (0.05)
-------- -------- -------- --------
Net Asset Value, End of Period $1.00 $1.00 $1.00 $1.00
======== ======== ======== ========
Total Return 4.76% 5.24% 5.15% 5.14%
Ratios/Supplemental Data
Net Assets, End of Period (in 000's) $335,140 $281,389 $238,551 $225,536
Ratio of expenses to average net assets:
Before reimbursement of expenses by Adviser(1) 0.51% 0.52% 0.56% 0.59%
After reimbursement of expenses by Adviser(1) 0.51% 0.51%(2) 0.50% 0.50%
Ratio of net investment income
to average net assets
Before reimbursement of expenses by Adviser(1) 4.63% 5.13% 5.00% 4.93%
After reimbursement of expenses by Adviser(1) 4.63% 5.14% 5.06% 5.02%

</TABLE>

(1)Annualized
(2)Effective February 27, 1998, the Adviser is no longer waiving fees or
reimbursing expenses.

General Information

If you wish to know more about Alleghany Funds, you will find additional
information in the following documents.

SHAREHOLDER REPORTS
You will receive semi-annual reports dated April 30 and annual reports, audited
by independent accountants, dated October 31. The annual report contains a
discussion of the market conditions and investment strategies that significantly
affected each Fund's performance during its last fiscal year.

HOW TO OBTAIN REPORTS

Contacting Alleghany Funds
You can get free copies of the reports and SAI, request other information and
discuss your questions about the Funds by contacting:

Address: Alleghany Funds
P.O. Box 5164
Westborough, MA 01581

Phone: Shareholder Services 800 992-8151
Fund Literature 800 391-2473
Investment Advisor Services 800 597-9704

Web site: www.AlleghanyFunds.com

Obtaining Information from the SEC
You can visit the EDGAR Database on the SEC's web site at http://www.sec.gov to
view the SAI and other information. You can also view and copy information about
the Funds at the SEC's Public Reference Room in Washington, D.C. To find out
more about the Public Reference Room, you can call the SEC at 202 942-8090.
Also, you can obtain copies of this information by sending your request and
duplication fee to the SEC's Public Reference Room, Washington D.C. 20549-0102
or by e-mailing the SEC at [email protected].

Investment Company Act File Number: 811-8004

AG01

General Information

If you wish to know more about Alleghany Funds, you will find additional
information in the following documents.

HOW TO OBTAIN REPORTS

Contacting Alleghany Funds
You can get free copies of the reports and SAI, request other information and
discuss your questions about the Funds by contacting:

Address: Alleghany Funds
P.O. Box 5164
Westborough, MA 01581

Phone: Shareholder Services 800 992-8151
Fund Literature 800 391-2473
Investment Advisor Services 800 597-9704

Web site: www.AlleghanyFunds.com

Investment Company Act File Number: 811-8004

AG01 W/AG03

General Information

If you wish to know more about Alleghany Funds, you will find additional
information in the following documents.

HOW TO OBTAIN REPORTS

Contacting Alleghany Funds
You can get free copies of the reports and SAI, request other information and
discuss your questions about the Funds by contacting:

Address: Alleghany Funds
P.O. Box 5164
Westborough, MA 01581

Phone: Shareholder Services 800 992-8151
Fund Literature 800 391-2473
Investment Advisor Services 800 597-9704

Web site: www.AlleghanyFunds.com

Investment Company Act File Number: 811-8004

AG01 W/AG03 & AG26

General Information

If you wish to know more about Alleghany Funds, you will find additional
information in the following documents.

HOW TO OBTAIN REPORTS

Contacting Alleghany Funds
You can get free copies of the reports and SAI, request other information and
discuss your questions about the Funds by contacting:

Address: Alleghany Funds
P.O. Box 5164
Westborough, MA 01581

Phone: Shareholder Services 800 992-8151
Fund Literature 800 391-2473
Investment Advisor Services 800 597-9704

Web site: www.AlleghanyFunds.com

Investment Company Act File Number: 811-8004

AG01 W/AG02

STATEMENT OF ADDITIONAL INFORMATION

March 1, 2001

This Statement of Additional Information provides supplementary
information pertaining to shares representing interests in the fifteen
investment portfolios of Alleghany Funds (the "Company"). As described in the
lists above, each Fund offers Class N shares for retail investors. Montag &
Caldwell Growth Fund, Alleghany/Chicago Trust Growth & Income Fund,
Alleghany/Blairlogie International Developed Fund, Alleghany/Blairlogie Emerging
Markets Fund, Montag & Caldwell Balanced Fund and Alleghany/Chicago Trust Bond
Fund
also offer Class I shares for institutional investors.

This Statement of Additional Information is not a Prospectus and should
be read only in conjunction with the Class N Shares Prospectus for the Funds
dated March 1, 2001 and the Class I Shares Prospectus for Montag & Caldwell
Growth Fund, Alleghany/Chicago Trust Growth & Income Fund, Alleghany/Blairlogie
International Developed Fund, Alleghany/Blairlogie Emerging Markets Fund, Montag
& Caldwell Balanced Fund and Alleghany/Chicago Trust Bond Fund, dated March 1,
2001. No investment in any of the Funds should be made without first reading the
appropriate Prospectus. You may obtain a Prospectus at no charge by contacting
the Company at Alleghany Funds, P.O. Box 5164, Westborough, MA 01581 or 800
992-8151.

Investment Advisers

THE CHICAGO TRUST COMPANY VEREDUS ASSET MANAGEMENT LLC
171 North Clark Street 1 Paragon Center, 6060 Dutchmans Lane
Chicago, IL 60601-3294 Suite 320
Louisville, KY 40205

MONTAG & CALDWELL, INC. BLAIRLOGIE CAPITAL MANAGEMENT
3343 Peachtree Road, NE, Suite 1100 4th Floor, 125 Princes Street
Atlanta, GA 30326-1450 Edinburgh EH2 4AD, Scotland

TAMRO CAPITAL PARTNERS LLC
1660 Duke Street
Alexandria, VA 22314

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TABLE OF CONTENTS

THE FUNDS 3
INVESTMENT POLICIES AND RISK CONSIDERATIONS 3
INVESTMENT RESTRICTIONS 23
TRUSTEES AND OFFICERS 24
PRINCIPAL HOLDERS OF SECURITIES 25
INVESTMENT ADVISORY AND OTHER SERVICES 31
Investment Advisory Agreements 31
The Administrator and Sub-Administrator 33
Distribution Plan 34
PORTFOLIO TRANSACTIONS AND BROKERAGE COMMISSIONS 35
NET ASSET VALUE 36
DIVIDENDS 37
TAXES 37
PERFORMANCE INFORMATION 40
OTHER INFORMATION 43
FINANCIAL STATEMENTS 45
APPENDIX A A-1

No person has been authorized to give any information or to make any
representations not contained in this Statement of Additional Information or in
the Prospectus in connection with the offering made by the Prospectus. If given
or made, such information or representations must not be relied upon as having
been authorized by the Company or its distributor. The Prospectus does not
constitute an offering by the Company or the distributor in any jurisdiction in
which such offering may not lawfully be made.

<PAGE>

THE FUNDS

Alleghany Funds, 171 North Clark Street, Chicago, Illinois 60601-3294,
is a no-load, open-end management investment company which currently offers
fifteen diversified series of shares of beneficial interest representing
separate portfolios of investments: Alleghany/Montag & Caldwell Growth Fund,
Alleghany/Chicago Trust Growth & Income Fund, Alleghany/TAMRO Large Cap Value
Fund, Alleghany/Chicago Trust Talon Fund, Alleghany/Chicago Trust Small Cap
Value Fund, Alleghany/Veredus Aggressive Growth Fund, Alleghany/TAMRO Small Cap
Fund, Alleghany/Veredus SciTech Fund, Alleghany/Blairlogie International
Developed Fund, Alleghany/Blairlogie Emerging Markets Fund, Alleghany/Montag &
Caldwell Balanced Fund, Alleghany/Chicago Trust Balanced Fund, Alleghany/Chicago
Trust Bond Fund, Alleghany/Chicago Trust Municipal Bond Fund and
Alleghany/Chicago Trust Money Market Fund. The Company was established as a
Delaware business trust on September 10, 1993.

INVESTMENT POLICIES AND RISK CONSIDERATIONS

The following supplements the information contained in the Prospectus
concerning the investment policies and risks of investing in the Funds. Except
as otherwise stated below or in the Prospectus, all Funds may invest in the
portfolio investments included in this section.

The investment practices described below, except for the discussion of
portfolio loan transactions, are not fundamental and may be changed by the Board
of Trustees without the approval of the shareholders.

RESTRICTED SECURITIES

Each Fund will limit investments in securities of issuers which the
Fund is restricted from selling to the public without registration under the
Securities Act of 1933, as amended (the "1933 Act") to no more than 5% of the
Fund's total assets, excluding restricted securities eligible for resale
pursuant to Rule 144A that have been determined to be liquid by a Fund's
Investment Adviser, pursuant to guidelines adopted by the Company's Board of
Trustees.

CONVERTIBLE SECURITIES

Common stock occupies the most junior position in a company's capital
structure. Convertible securities entitle the holder to exchange the securities
for a specified number of shares of common stock, usually of the same company,
at specified prices within a certain period of time and to receive interest or
dividends until the holder elects to convert. The provisions of any convertible
security determine its ranking in a company's capital structure. In the case of
subordinated convertible debentures, the holder's claims on assets and earnings
are subordinated to the claims of other creditors and are senior to the claims
of preferred and common shareholders. In the case of preferred stock and
convertible preferred stock, the holder's claims on assets and earnings are
subordinated to the claims of all creditors but are senior to the claims of
common shareholders.

MONEY MARKET INSTRUMENTS AND RELATED RISKS

All Funds may invest in money market instruments, including bank
obligations and commercial paper. Money market instruments in which the Funds
may invest include but are not limited to the following: short-term corporate
obligations, Certificates of Deposit ("CDs"), Eurodollar Certificates of Deposit
("Euro CDs"), Yankee Certificates of Deposit ("Yankee CDs"), foreign bankers'
acceptances, foreign commercial paper, letter of credit-backed commercial paper,
time deposits, loan participations ("LPs"), variable- and floating-rate
instruments and master demand notes. Bank obligations may include bankers'
acceptances, negotiable certificates of deposit and non-negotiable time deposits
earning a specified return, issued for a definite period of time by a U.S. bank
that is a member of the Federal Reserve System or is insured by the Federal
Deposit Insurance Corporation, or by a savings and loan association or savings
bank that is insured by the Federal Deposit Insurance Corporation. Bank
obligations also include U.S. dollar-denominated obligations of foreign branches
of U.S. banks or of U.S. branches of foreign banks, all of the same type as
domestic bank obligations. Investments in bank obligations are limited to the
obligations of financial institutions having more than $1 billion in total
assets at the time of purchase. Investments by Alleghany/Chicago Trust Money
Market Fund in non-negotiable time deposits are limited to no more than 5% of
its total assets at the time of purchase.

Domestic and foreign banks are subject to extensive but different
government regulations which may limit the amount and types of their loans and
the interest rates that may be charged. In addition, the profitability of the
banking industry is largely dependent upon the availability and cost of funds to
finance lending operations and the quality of underlying bank assets.

Investments in obligations of foreign branches of U.S. banks and of
U.S. branches of foreign banks may subject a Fund to additional investment
risks, including future political and economic developments, possible imposition
of withholding taxes on interest income, possible seizure or nationalization of
foreign deposits, possible establishment of exchange controls or the adoption of
other foreign governmental restrictions which might adversely affect the payment
of principal and interest on such obligations. In addition, foreign branches of
U.S. banks and U.S. branches of foreign banks may be subject to less stringent
reserve requirements and to different accounting, auditing, reporting and record
keeping standards than those applicable to domestic branches of U.S. banks.
Investments in the obligations of U.S. branches of foreign banks or foreign
branches of U.S. banks will be made only when the Investment Adviser believes
that the credit risk with respect to the investment is minimal.

Euro CDs, Yankee CDs and foreign bankers' acceptances involve risks
that are different from investments in securities of U.S. banks. The major risk,
which is sometimes referred to as "sovereign risk," pertains to possible future
unfavorable political and economic developments, possible withholding taxes,
seizures of foreign deposits, currency controls, interest limitations or other
governmental restrictions which might affect payment of principal or interest.
Investment in foreign commercial paper also involves risks that are different
from investments in securities of commercial paper issued by U.S. companies.
Non-U.S. securities markets generally are not as developed or efficient as those
in the United States. Such securities may be less liquid and more volatile than
securities of comparable U.S. corporations. Non-U.S. issuers are not generally
subject to uniform accounting and financial reporting standards, practices and
requirements comparable to those applicable to U.S. issuers. In addition, there
may be less public information available about foreign banks, their branches and
other issuers.

Time deposits usually trade at a premium over Treasuries of the same
maturity. Investors regard such deposits as carrying some credit risk, which
Treasuries do not; also, investors regard time deposits as being sufficiently
less liquid than Treasuries; hence, investors demand some extra yield for buying
time deposits rather than Treasuries. The investor in a loan participation has a
dual credit risk to both the borrower and also the selling bank. The second risk
arises because it is the selling bank that collects interest and principal and
sends it to the investor.

Commercial paper may include variable- and floating-rate instruments,
which are unsecured instruments that permit the interest on indebtedness
thereunder to vary. Variable-rate instruments provide for periodic adjustments
in the interest rate. Floating-rate instruments provide for automatic adjustment
of the interest rate whenever some other specified interest rate changes. Some
variable- and floating-rate obligations are direct lending arrangements between
the purchaser and the issuer and there may be no active secondary market.
However, in the case of variable- and floating-rate obligations with the demand
feature, a Fund may demand payment of principal and accrued interest at a time
specified in the instrument or may resell the instrument to a third party. In
the event an issuer of a variable- or floating-rate obligation defaulted on its
payment obligation, a Fund might be unable to dispose of the note because of the
absence of a secondary market and could, for this or other reasons, suffer a
loss to the extent of the default. Substantial holdings of variable- and
floating-rate instruments could reduce portfolio liquidity.

Variable- and Floating-Rate Instruments and Related Risks

With respect to the variable- and floating-rate instruments that may be
acquired by Alleghany/Montag & Caldwell Balanced Fund, Alleghany/Chicago Trust
Balanced Fund, Alleghany/Chicago Trust Bond Fund or Alleghany/Chicago Trust
Municipal Bond Fund, the Investment Adviser will consider the earning power,
cash flows and other liquidity ratios of the issuers and guarantors of such
instruments and, if the instruments are subject to demand features, will monitor
their financial status with respect to the ability of the issuer to meet its
obligation to make payment on demand. Where necessary to ensure that a variable-
or floating-rate instrument meets a Fund's quality requirements, the issuer's
obligation to pay the principal of the instrument will be backed by an
unconditional bank letter or line of credit, guarantee or commitment to lend.

Because variable- and floating-rate instruments are direct lending
arrangements between the lender and the borrower, it is not contemplated that
such instruments will generally be traded. There is generally no established
secondary market for these obligations, although they are redeemable at face
value. Accordingly, where these obligations are not secured by letters of credit
or other credit support arrangements, the Fund's right to redeem is dependent on
the ability of the borrower to pay principal and interest on demand.

The same credit research must be done for master demand notes as in
accepted names for potential commercial paper issuers to reduce the chances of a
borrower getting into serious financial difficulties.

<PAGE>

Loan Participations

All Funds may engage in loan participations ("LPs"). LPs are loans sold
by the lending bank to an investor. The loan participant borrower may be a
company with highly-rated commercial paper that finds it can obtain cheaper
funding through an LP than with commercial paper and can also increase the
company's name recognition in the capital markets. LPs often generate greater
yield than commercial paper.

The borrower of the underlying loan will be deemed to be the issuer
except to the extent the Fund derives its rights from the intermediary bank
which sold the LPs. Because LPs are undivided interests in a loan made by the
issuing bank, the Fund may not have the right to proceed against the LP borrower
without the consent of other holders of the LPs. In addition, LPs will be
treated as illiquid if, in the judgment of the Investment Adviser, they cannot
be sold within seven days.

Foreign Bankers' Acceptances

All Funds may purchase foreign bankers' acceptances, although
Alleghany/Chicago Trust Money Market Fund's purchases are limited by the quality
standards of Rule 2a-7 under the Investment Company Act of 1940 (the "1940
Act"). Foreign bankers' acceptances are short-term (270 days or less),
non-interest-bearing notes sold at a discount and redeemed by the accepting
foreign bank at maturity for full face value and denominated in U.S. dollars.
Foreign bankers' acceptances are the obligations of the foreign bank involved to
pay a draft drawn on it by a customer. These instruments reflect the obligation
both of the bank and the drawer to pay the face amount of the instrument upon
maturity.

Foreign Commercial Paper

All Funds may purchase foreign commercial paper, although
Alleghany/Chicago Trust Money Market Fund's purchases are limited by the quality
standards of Rule 2a-7 under the 1940 Act. Foreign commercial paper consists of
short-term unsecured promissory notes denominated in U.S. dollars, issued
directly by a foreign firm in the U.S. or issued by a "domestic shell"
subsidiary of a foreign firm established to raise dollars for the firm's
operations abroad or for its U.S. subsidiary. Like commercial paper issued by
U.S. companies, foreign commercial paper is rated by the rating agencies
(Moody's, Standard & Poor's ("S&P)) as to the issuer's creditworthiness. Foreign
commercial paper can potentially provide the investor with a greater yield than
domestic commercial paper.

Eurodollar Certificates of Deposit

A Euro CD is a receipt from a bank for funds deposited at that bank for
a specific period of time at some specific rate of return and denominated in
U.S. dollars. It is the liability of a U.S. bank branch or foreign bank located
outside the U.S. Almost all Euro CDs are issued in London.

Yankee Certificates of Deposit

Yankee CDs are certificates of deposit that are issued domestically by
foreign banks. It is a means by which foreign banks may gain access to U.S.
markets through their branches which are located in the United States, typically
in New York. These CDs are treated as domestic securities.

REPURCHASE AGREEMENTS

All Funds may enter into repurchase agreements pursuant to which a Fund
purchases portfolio assets from a bank or broker-dealer concurrently with an
agreement by the seller to repurchase the same assets from the Fund at a later
date at a fixed price. Under the 1940 Act, repurchase agreements are considered
to be collateralized loans by a Fund to the seller secured by the securities
transferred to the Fund. Repurchase agreements will be fully collateralized by
securities in which the Fund may invest directly. Such collateral will be
marked-to-market daily. If the seller of the underlying security under the
repurchase agreement should default on its obligation to repurchase the
underlying security, a Fund may experience delay or difficulty in exercising its
right to realize upon the security. Additionally, a Fund may incur a loss if the
value of the security should decline, as well as disposition costs in
liquidating the security. A Fund must treat each repurchase agreement as a
security for tax diversification purposes and not as cash, a cash equivalent or
receivable.

The repurchase price generally equals the price paid by a Fund plus
interest negotiated on the basis of current short-term rates (which may be more
or less than the rate on the securities underlying the repurchase agreement).
Repurchase agreements may be considered loans by a Fund under the 1940 Act.

The financial institutions with which a Fund may enter into repurchase
agreements are banks and non-bank dealers of U.S. Government securities that are
listed on the Federal Reserve Bank of New York's list of reporting dealers and
banks, if such banks and non-bank dealers are deemed creditworthy by the
Investment Adviser or Sub-Investment Adviser. The Investment Adviser or
Sub-Investment Adviser will continue to monitor the creditworthiness of the
seller under a repurchase agreement and will require the seller to maintain
during the term of the agreement the value of the securities subject to the
agreement at not less than the repurchase price.

Each Fund will only enter into a repurchase agreement where the market
value of the underlying security, including interest accrued, will be at all
times equal to or exceed the value of the repurchase agreement. The securities
held subject to a repurchase agreement by Alleghany/Chicago Trust Money Market
Fund may have stated maturities exceeding 13 months, provided the repurchase
agreement itself matures in less than 13 months.

REVERSE REPURCHASE AGREEMENTS

All Funds may enter into reverse repurchase agreements with banks and
broker dealers. Reverse repurchase agreements involve the sale of securities
held by a Fund pursuant to a Fund's agreement to repurchase the securities at an
agreed upon price, date and rate of interest. During the reverse repurchase
agreement period, the Fund continues to receive principal and interest payments
on these securities. Such agreements are considered to be borrowings under the
1940 Act and may be entered into only for temporary or emergency purposes. While
reverse repurchase transactions are outstanding, a Fund will maintain in a
segregated account cash, or liquid, securities in an amount at least equal to
the market value of the securities, plus accrued interest, subject to the
agreement. (Liquid securities as used in the prospectus and this Statement of
Additional Information include equity securities and debt securities that are
unencumbered and marked-to-market daily.) Reverse repurchase agreements involve
the risk that the market value of the securities sold by the Fund may decline
below the price at which the Fund is obligated to repurchase such securities.

BORROWING

The Funds may not borrow money or issue senior securities, except as
described in this paragraph. Each Fund may borrow from banks or enter into
reverse repurchase agreements for temporary purposes in amounts up to 10% of the
value of its total assets. The Funds may not mortgage, pledge or hypothecate any
assets, except that each Fund may do so in connection with borrowings for
temporary purposes in amounts not in excess of the lesser of the dollar amounts
borrowed or 10% of the value of the total assets of the Fund. The Funds may also
borrow money for extraordinary purposes or to facilitate redemptions in amounts
up to 25% of the value of total assets. A Fund will not purchase securities
while its borrowings (including reverse repurchase agreements) exceed 5% of its
total assets. The Funds have no intention of increasing their net income through
borrowing. Any borrowing will be done from a bank with the required asset
coverage of at least 300%. In the event that such asset coverage shall at any
time fall below 300%, the Fund shall, within three days thereafter (not
including Sundays or holidays) or such longer period as the Securities and
Exchange Commission ("SEC") may prescribe by rules and regulations, reduce the
amount of its borrowings to such an extent that the asset coverage of such
borrowings shall be at least 300%.

ILLIQUID SECURITIES

All Funds may invest up to 15% (10% for Alleghany/Chicago Trust Money
Market Fund) of their respective net assets in securities which are illiquid.
Illiquid securities will generally include but are not limited to: repurchase
agreements and time deposits with notice/termination dates in excess of seven
days; unlisted over-the-counter options; interest rate, currency and mortgage
swap agreements; interest rate caps, floors and collars; and certain securities
which are subject to trading restrictions because they are not registered under
the 1933 Act.

RULE 144A SECURITIES

All Funds may purchase securities which are not registered under the
1933 Act but which can be sold to "qualified institutional buyers" in accordance
with Rule 144A under the 1933 Act. Any such security will not be considered
illiquid so long as it is determined by the Investment Adviser or Sub-Investment
Adviser, under guidelines approved by the Company's Board of Trustees, that an
adequate trading market exists for that security. This investment practice could
have the effect of increasing the level of illiquidity in a Fund during any
period that qualified institutional buyers become uninterested in purchasing
these restricted securities.

<PAGE>

SECURITIES LENDING

All Funds may seek additional income at times by lending their
respective portfolio securities to broker-dealers and financial institutions
provided that: (1) the loan is secured by collateral that is continuously
maintained in an amount at least equal to the current market value of the
securities loaned, (2) a Fund may call the loan at any time with proper notice
and receive the securities loaned, (3) a Fund will continue to receive interest
and/or dividends paid on the loaned securities and may simultaneously earn
interest on the investment of any cash collateral and (4) the aggregate market
value of all securities loaned by a Fund will not at any time exceed 25% of the
total assets of such Fund.

Collateral will normally consist of cash or cash equivalents,
securities issued by the U.S. government or its agencies or instrumentalities or
irrevocable letters of credit. Securities lending by a Fund involves the risk
that the borrower may fail to return the loaned securities or maintain the
proper amount of collateral. Therefore, a Fund will only enter into such lending
after a review by the Investment Adviser of the borrower's financial statements,
reports and other information as may be necessary to evaluate the
creditworthiness of the borrower. Such reviews will be conducted on an ongoing
basis as long as the loan is outstanding.

SECURITIES OF OTHER INVESTMENT COMPANIES

All Funds may invest in securities issued by other investment companies
which invest in securities in which the particular Fund is permitted to invest
and which determine their net asset value per share based on the amortized cost
or penny-rounding method. As a shareholder of another investment company, each
Fund would bear, along with other shareholders, its pro rata portion of the such
investment company's expenses, including advisory fees. These expenses would be
in addition to the advisory and other expenses that a Fund bears directly in
connection with its own operations.

Each Fund intends to limit its investments in securities issued by
other investment companies prescribed by the 1940 Act so that, as determined
immediately after a purchase of such securities is made: (i) not more than 5% of
the value of the Fund's total assets will be invested in the securities of any
one investment company, (ii) not more than 10% of its total assets will be
invested in the aggregate in securities of investment companies as a group and
(iii) not more than 3% of the outstanding voting stock of any one investment
company will be owned by the Fund as a whole.

SHORT-TERM TRADING

All Funds may engage in short-term trading. Securities may be sold in
anticipation of a market decline or purchased in anticipation of a market rise
and later sold. In addition, a security may be sold and another purchased at
approximately the same time to take advantage of what a Fund believes to be a
temporary disparity in the normal yield relationship between the two securities.
Such trading may be expected to increase a Fund's portfolio turnover rate and
the expenses incurred in connection with such trading.

ZERO COUPON BONDS

All Funds except Alleghany/Montag & Caldwell Growth Fund,
Alleghany/TAMRO Large Cap Value Fund, Alleghany/Chicago Trust Talon Fund,
Alleghany/TAMRO Small Cap Fund and Alleghany/Chicago Trust Money Market Fund may
invest in zero coupon securities, which are debt securities issued or sold at a
discount from their face value that do not entitle the holder to any periodic
payment of interest prior to maturity, a specified redemption date or a cash
payment date. The amount of the discount varies depending on the time remaining
until maturity or cash payment date, prevailing interest rates, liquidity of the
security and perceived credit quality of the issuer.

Zero coupon securities also may take the form of debt securities that
have been stripped of their unmatured interest coupons, the coupons themselves
and receipts or certificates representing interests in such stripped debt
obligations and coupons. The market prices of zero coupon securities are
generally more volatile than the market prices of interest-bearing securities
and respond more to changes in interest rates than interest-bearing securities
with similar maturities and credit qualities. The original issue discount on the
zero coupon bonds must be included ratably in the income of the Funds as the
income accrues even though payment has not been received. These Funds
nevertheless intend to distribute an amount of cash equal to the currently
accrued original issue discount, and this may require liquidating securities at
times they might not otherwise do so and may result in capital loss.

<PAGE>

LOWER-GRADE DEBT SECURITIES AND RELATED RISKS

Alleghany/Chicago Trust Growth & Income Fund, Alleghany/Chicago Trust
Talon Fund, Alleghany/Chicago Trust Balanced Fund, Alleghany/Chicago Trust Bond
Fund and Alleghany/Chicago Trust Municipal Bond Fund may invest in securities
with high yields and high risks. Alleghany/Chicago Trust Growth & Income Fund
may invest up to 10% of assets in such securities. Alleghany/Chicago Trust Talon
Fund, Alleghany/Chicago Trust Balanced Fund, Alleghany/Chicago Trust Bond Fund
and Alleghany/Chicago Trust Municipal Bond Fund may each invest up to 20% of
their respective assets in such securities.

Fixed income securities rated lower than "Baa3" by Moody's or "BBB-" by
S&P, frequently referred to as "junk bonds", are considered to be of poor
standing and predominantly speculative. They generally offer higher yields than
higher rated bonds. Such securities are subject to a substantial degree of
credit risk. Such medium- and low-grade bonds held by a Fund may be issued as a
consequence of corporate restructurings, such as leveraged buy-outs, mergers,
acquisitions, debt recapitalizations or similar events. Additionally, high-yield
bonds are often issued by smaller, less creditworthy companies or by highly
leveraged firms, which are generally less able than more financially stable
firms to make scheduled payments of interest and principal. The risks posed by
bonds issued under such circumstances are substantial. During an economic
downturn or substantial period of rising interest rates, highly leveraged
issuers may experience financial stress which would adversely affect their
ability to service principal and interest payment obligations, to meet projected
business goals or to obtain additional financing. Changes by recognized rating
agencies in their rating of any security and in the ability of an issuer to make
payments of interest and principal will ordinarily have a more dramatic effect
on the values of these investments than on the values of higher-rated
securities. Such changes in value will not affect cash income derived from these
securities, unless the issuers fail to pay interest or dividends when due. Such
changes will, however, affect a Fund's net asset value per share. There can be
no assurance that diversification will protect a Fund from widespread bond
defaults brought about by a sustained economic downturn.

In the past, the high yields from low-grade bonds have more than
compensated for the higher default rates on such securities. However, there can
be no assurance that diversification will protect a Fund from widespread bond
defaults brought about by a sustained economic downturn, or that yields will
continue to offset default rates on high-yield bonds in the future. Issuers of
these securities are often highly leveraged, so that their ability to service
their debt obligations during an economic downturn or during sustained periods
of rising interest rates may be impaired. In addition, such issuers may not have
more traditional methods of financing available to them and may be unable to
repay debt at maturity by refinancing.

The value of lower-rated debt securities will be influenced not only by
changing interest rates, but also by the bond market's perception of credit
quality and the outlook for economic growth. When economic conditions appear to
be deteriorating, low- and medium-rated bonds may decline in market value due to
investors' heightened concern over credit quality, regardless of prevailing
interest rates. Adverse publicity and investor perceptions, whether or not based
on fundamental analysis, may decrease the value and liquidity of lower-rated
securities held by a Fund, especially in a thinly traded market. Illiquid or
restricted securities held by a Fund may involve valuation difficulties. Trading
in the secondary market for high-yield bonds may become thin and market
liquidity may be significantly reduced. Even under normal conditions, the market
for high-yield bonds may be less liquid than the market for investment-grade
corporate bonds. There are fewer securities dealers in the high-yield market,
and purchasers of high-yield bonds are concentrated among a smaller group of
securities dealers and institutional investors. In periods of reduced market
liquidity, high-yield bond prices may become more volatile.

Youth and Growth of Lower-Rated Securities Market - The recent growth
of the lower-rated securities market has paralleled a long economic expansion,
and it has not weathered a recession in the market's present size and form. An
economic downturn or increase in interest rates is likely to have an adverse
effect on the lower-rated securities market generally (resulting in more
defaults) and on the value of lower-rated securities contained in the portfolios
of the Funds which hold these securities.

Sensitivity to Economic and Interest Rate Changes - The economy and
interest rates can affect lower-rated securities differently from other
securities. For example, the prices of lower-rated securities are more sensitive
to adverse economic changes or individual corporate developments than are the
prices of higher-rated investments. Also, during an economic downturn or
substantial period of rising interest rates, highly leveraged issuers may
experience financial stress which would adversely affect their ability to
service their principal and interest payment obligations, to meet projected
business goals or to obtain additional financing. If the issuer of a lower-rated
security defaulted, a Fund may incur additional expenses to seek recovery. In
addition, periods of economic uncertainty and changes can be expected to result
in increased volatility of market prices of lower-rated securities and a Fund's
net asset values.

Liquidity and Valuation - To the extent that an established secondary
market does not exist and a particular obligation is thinly traded, the
obligation's fair value may be difficult to determine because of the absence of
reliable, objective data. As a result, a Fund's valuation of the obligation and
the price it could obtain upon its disposition could differ.

Credit Ratings - The credit ratings of Moody's and S&P are evaluations
of the safety of principal and interest payments of lower-rated securities.
There is a risk that credit rating agencies may fail to timely change the credit
ratings to reflect subsequent events. Therefore, in addition to using recognized
rating agencies and other sources, the Investment Adviser or Sub-Investment
Adviser also performs its own analysis of issuers in selecting investments for a
Fund. The Investment Adviser or Sub-Investment Adviser's analysis of issuers may
include, among other things, historic and current financial condition, current
and anticipated cash flow and borrowing strength of management, responsiveness
to business conditions, credit standing and current and anticipated results of
operations.

Yields and Ratings - The yields on certain obligations are dependent on
a variety of factors, including general market conditions, conditions in the
particular market for the obligation, the financial condition of the issuer, the
size of the offering, the maturity of the obligation and the ratings of the
issue. The ratings of Moody's and S&P represent their respective opinions as to
the quality of the obligations they undertake to rate. Ratings, however, are
general and are not absolute standards of quality. Consequently, obligations
with the same rating, maturity and interest rate may have different market
prices.

While any investment carries some risk, certain risks associated with
lower-rated securities are different from those for investment-grade securities.
The risk of loss through default is greater because lower-rated securities are
usually unsecured and are often subordinate to an issuer's other obligations.
Additionally, the issuers of these securities frequently have high debt levels
and are thus more sensitive to difficult economic conditions, individual
corporate developments and rising interest rates. Consequently, the market price
of these securities may be quite volatile and may result in wider fluctuations
of a Fund's net asset value per share.

DERIVATIVE INVESTMENTS

The term "derivatives" has been used to identify a range and variety of
financial instruments. In general, a derivative is commonly defined as a
financial instrument whose performance and value are derived, at least in part,
from another source, such as the performance of an underlying asset, a specific
security or an index of securities. As is the case with other types of
investments, a Fund's derivative instruments may entail various types and
degrees of risk, depending upon the characteristics of a derivative instrument
and the Fund's overall portfolio.

Each Fund permitted the use of derivatives may engage in such practices
for hedging purposes, to maintain liquidity or in anticipation of changes in the
composition of its portfolio holdings. No Fund will engage in derivative
investments purely for speculative purposes. A Fund will invest in one or more
derivatives only to the extent that the instrument under consideration is judged
by the Investment Adviser to be consistent with the Fund's overall investment
objective and policies. In making such judgment, the potential benefits and
risks will be considered in relation to the Fund's other portfolio investments.

Where not specified, investment limitations with respect to a Fund's
derivative instruments will be consistent with such Fund's existing percentage
limitations with respect to its overall investment policies and restrictions.
While not a fundamental policy, the total of all instruments deemed derivative
in nature by the Investment Adviser will generally not exceed 20% of total
assets for any Fund; however, as this policy is not fundamental, it may be
changed from time to time when deemed appropriate by the Board of Trustees.
Listed below are the types of derivative securities in which certain Funds are
permitted to invest and their respective policies and risks.

Options and Related Risks

All Funds except Alleghany/Chicago Trust Small Cap Value Fund and
Alleghany/Chicago Trust Money Market Fund may buy put and call options and write
covered call and secured put options.

A call option enables the purchaser, in return for the premium paid, to
purchase securities from the writer of the option at an agreed price up to an
agreed date. The advantage is that the purchaser may hedge against an increase
in the price of securities it ultimately wishes to buy or may take advantage of
a rise in a particular index. A Fund will only purchase call options to the
extent premiums paid on all outstanding call options do not exceed 20% of such
Fund's total assets. A Fund will only sell or write call options on a covered
basis (e.g. on securities it holds in its portfolio).

A put option enables the purchaser of the option, in return for the
premium paid, to sell the security underlying the option to the writer at the
exercise price during the option period. The writer of the option has the
obligation to purchase the security from the purchaser of the option. The
advantage is that the purchaser can be protected should the market value of the
security decline or should a particular index decline. A Fund will only purchase
put options to the extent that the premiums on all outstanding put options do
not exceed 20% of a Fund's total assets. A Fund will only purchase put options
on a covered basis and write put options on a secured basis. Cash or other
collateral will be held in a segregated account for such options. A Fund will
receive premium income from writing put options, although it may be required,
when the put is exercised, to purchase securities at higher prices than the
current market price. At the time of purchase, a Fund will receive premium
income from writing call options, which may offset the cost of purchasing put
options and may also contribute to a Fund's total return. A Fund may lose
potential market appreciation if the judgment of its Investment Adviser or
Sub-Investment Adviser is incorrect with respect to interest rates, security
prices or the movement of indices.

An option on a securities index gives the purchaser of the option, in
return for the premium paid, the right to receive cash from the seller equal to
the difference between the closing price of the index and the exercise price of
the option.

Closing transactions essentially let a Fund offset put options or call
options prior to exercise or expiration. If a Fund cannot effect a closing
transaction, it may have to hold a security it would otherwise sell or deliver a
security it might want to hold.

A Fund may use options traded on U.S. exchanges, and as permitted by
law, options traded over-the-counter. It is the position of the SEC that
over-the-counter options are illiquid. Accordingly, a Fund will invest in such
options only to the extent consistent with its 15% limit on investments in
illiquid securities.

These options are generally considered to be derivative securities.
Such options may relate to particular securities, stock indices or financial
instruments and may or may not be listed on a national securities exchange and
issued by the Options Clearing Corporation. Options trading is a highly
specialized activity which entails greater than ordinary investment risk.
Options on particular securities may be more volatile than the underlying
securities, and on a percentage basis, an investment in options may be subject
to greater fluctuation than an investment in the underlying securities
themselves.

These Funds will write call options only if they are "covered." In the
case of a call option on a security, the option is "covered" if a Fund owns the
security underlying the call or has an absolute and immediate right to acquire
that security without additional cash consideration (or, if additional cash
consideration is required, cash or liquid securities in such amount are held in
a segregated account by its custodian) upon conversion or exchange of other
securities held by it. For a call option on an index, the option is covered if a
Fund maintains with its custodian a diversified stock portfolio or liquid assets
equal to the contract value.

A call option is also covered if a Fund holds a call on the same
security or index as the call written where the exercise price of the call held
is (i) equal to or less than the exercise price of the call written or (ii)
greater than the exercise price of the call written provided the difference is
maintained by the Fund in cash or liquid securities in a segregated account with
its custodian. The Funds will write put options only if they are "secured" by
liquid assets maintained in a segregated account by the Funds' Custodian in an
amount not less than the exercise price of the option at all times during the
option period.

A Fund's obligation to sell a security subject to a covered call option
written by it, or to purchase a security subject to a secured put option written
by it, may be terminated prior to the expiration date of the option by the
Fund's execution of a closing purchase transaction, which is effected by
purchasing on an exchange an option of the same series as the previously written
option. Such a purchase does not result in the ownership of an option. A closing
purchase transaction will ordinarily be effected to realize a profit on an
outstanding option, to prevent an underlying security from being called, to
permit the sale of the underlying security, or to permit the writing of a new
option containing different terms on such underlying security. The cost of such
a liquidation purchase plus transaction costs may be greater than the premium
received upon the original option, in which event the Fund will have incurred a
loss in the transaction.

There is no assurance that a liquid secondary market will exist for any
particular option. An option writer, unable to effect a closing purchase
transaction, will not be able to sell the underlying security (in the case of a
covered call option) or liquidate the segregated account (in the case of a
secured put option) until the option expires or the optioned security is
delivered upon exercise with the result that the writer in such circumstances
will be subject to the risk of market decline or appreciation in the security
during such period.

Purchasing Call Options - Each of these Funds may purchase call options
to the extent that premiums paid by such Fund do not aggregate more than 20% of
that Fund's total assets. When a Fund purchases a call option, in return for a
premium paid by the Fund to the writer of the option, the Fund obtains the right
to buy the security underlying the option at a specified exercise price at any
time during the term of the option. The writer of the call option, who receives
the premium upon writing the option, has the obligation, upon exercise of the
option, to deliver the underlying security against payment of the exercise
price. The advantage of purchasing call options is that a Fund may alter
portfolio characteristics and modify portfolio maturities without incurring the
cost associated with transactions, except the cost of the option.

Following the purchase of a call option, a Fund may liquidate its
position by effecting a closing sale transaction by selling an option of the
same series as the option previously purchased. The Fund will realize a profit
from a closing sale transaction if the price received on the transaction is more
than the premium paid to purchase the original call option; the Fund will
realize a loss from a closing sale transaction if the price received on the
transaction is less than the premium paid to purchase the original call option.

Although a Fund will generally purchase only those call options for
which there appears to be an active secondary market, there is no assurance that
a liquid secondary market on an exchange will exist for any particular option,
or at any particular time, and for some options no secondary market on an
exchange may exist. In such event, it may not be possible to effect closing
transactions in particular options, with the result that a Fund would have to
exercise its options in order to realize any profit and would incur brokerage
commissions upon the exercise of such options and upon the subsequent
disposition of the underlying securities acquired through the exercise of such
options. Further, unless the price of the underlying security changes
sufficiently, a call option purchased by a Fund may expire without any value to
the Fund, in which event the Fund would realize a capital loss which will be
short-term unless the option was held for more than one year.

Covered Call Writing - Each of these Funds may write covered call
options from time to time on such portions of their portfolios, without limit,
as the Investment Adviser or Sub-Investment Adviser determines is appropriate in
pursuing a Fund's investment objective. The advantage to a Fund of writing
covered calls is that the Fund receives a premium which is additional income.
However, if the security rises in value, the Fund may not fully participate in
the market appreciation.

During the option period, a covered call option writer may be assigned
an exercise notice by the broker-dealer through whom such call option was sold,
requiring the writer to deliver the underlying security against payment of the
exercise price. This obligation is terminated upon the expiration of the option
or upon entering a closing purchase transaction. A closing purchase transaction,
in which a Fund, as writer of an option, terminates its obligation by purchasing
an option of the same series as the option previously written, cannot be
effected with respect to an option once the option writer has received an
exercise notice for such option.

Closing purchase transactions will ordinarily be effected to realize a
profit on an outstanding call option, to prevent an underlying security from
being called, to permit the sale of the underlying security or to enable a Fund
to write another call option on the underlying security with either a different
exercise price or expiration date or both. A Fund may realize a net gain or loss
from a closing purchase transaction depending upon whether the net amount of the
original premium received on the call option is more or less than the cost of
effecting the closing purchase transaction. Any loss incurred in a closing
purchase transaction may be partially or entirely offset by the premium received
from a sale of a different call option on the same underlying security. Such a
loss may also be wholly or partially offset by unrealized appreciation in the
market value of the underlying security. Conversely, a gain resulting from a
closing purchase transaction could be offset in whole or in part by a decline in
the market value of the underlying security.

If a call option expires unexercised, the Fund will realize a
short-term capital gain in the amount of the premium on the option less the
commission paid. Such a gain, however, may be offset by depreciation in the
market value of the underlying security during the option period. If a call
option is exercised, a Fund will realize a gain or loss from the sale of the
underlying security equal to the difference between the cost of the underlying
security and the proceeds of the sale of the security plus the amount of the
premium on the option less the commission paid.

A Fund will write call options only on a covered basis, which means
that a Fund will own the underlying security subject to a call option at all
times during the option period. Unless a closing purchase transaction is
effected, a Fund would be required to continue to hold a security which it might
otherwise wish to sell or deliver a security it would want to hold. The exercise
price of a call option may be below, equal to, or above the current market value
of the underlying security at the time the option is written.

Purchasing Put Options - Each of these Funds may invest up to 20% of
its total assets in the purchase of put options. A Fund will, at all times
during which it holds a put option, own the security covered by such option.
With regard to the writing of put options, each Fund will limit the aggregate
value of the obligations underlying such put options to 50% of its total assets.
The purchase of the put on substantially identical securities held will
constitute a short sale for tax purposes, the effect of which is to create
short-term capital gain on the sale of the security and to suspend running of
its holding period (and treat it as commencing on the date of the closing of the
short sale) or that of a security acquired to cover the same if at the time the
put was acquired, the security had not been held for more than one year.

A put option purchased by a Fund gives it the right to sell one of its
securities for an agreed price up to an agreed date. A Fund would purchase put
options in order to protect against a decline in the market value of the
underlying security below the exercise price less the premium paid for the
option ("protective puts"). The ability to purchase put options allows a Fund to
protect unrealized gains in an appreciated security in their portfolios without
actually selling the security. If the security does not drop in value, a Fund
will lose the value of the premium paid. A Fund may sell a put option which it
has previously purchased prior to the sale of the securities underlying such
option. Such sale will result in a net gain or loss depending on whether the
amount received on the sale is more or less than the premium and other
transaction costs paid on the put option which is sold.

Each of these Funds may sell a put option purchased on individual
portfolio securities. Additionally, a Fund may enter into closing sale
transactions. A closing sale transaction is one in which a Fund, when it is the
holder of an outstanding option, liquidates its position by selling an option of
the same series as the option previously purchased.

Writing Put Options - Each of these Funds may also write put options on
a secured basis which means that a Fund will maintain in a segregated account
with its Custodian, cash or U.S. Government securities in an amount not less
than the exercise price of the option at all times during the option period. The
amount of cash or U.S. Government securities held in the segregated account will
be adjusted on a daily basis to reflect changes in the market value of the
securities covered by the put option written by the Fund. Secured put options
will generally be written in circumstances where the Investment Adviser or
Sub-Investment Adviser wishes to purchase the underlying security for a Fund's
portfolio at a price lower than the current market price of the security. In
such event, that Fund would write a secured put option at an exercise price
which, reduced by the premium received on the option, reflects the lower price
it is willing to pay.

Following the writing of a put option, a Fund may wish to terminate the
obligation to buy the security underlying the option by effecting a closing
purchase transaction. This is accomplished by buying an option of the same
series as the option previously written. However, the Fund may not effect such a
closing transaction after it has been notified of the exercise of the option.

Foreign Currency Options - Alleghany/Blairlogie International Developed
Fund and Alleghany/Blairlogie Emerging Markets Fund may buy or sell put and call
options on foreign currencies either on exchanges or in the over-the-counter
market. A put option on a foreign currency gives the purchaser of the option the
right to sell a foreign currency at the exercise price until the option expires.
A call option on a foreign currency gives the purchaser of the option the right
to purchase the currency at the exercise price until the option expires.
Currency options traded on U.S. or other exchanges may be subject to position
limits which may limit the ability of a Fund to reduce foreign currency risk
using such options.

Futures Contracts and Related Risks

All Funds except Alleghany/Chicago Trust Small Cap Value Fund,
Alleghany/Veredus Aggressive Growth Fund, Alleghany/Veredus SciTech Fund and
Alleghany/Chicago Trust Money Market Fund may engage in futures contracts and
options on futures contracts for hedging purposes or to maintain liquidity.
However, a Fund may not purchase or sell a futures contract unless immediately
after any such transaction the sum of the aggregate amount of margin deposits on
its existing futures positions and the amount of premiums paid for related
options is 5% or less of its total assets, after taking into account unrealized
profits and unrealized losses on any such contracts. At maturity, a futures
contract obligates a Fund to take or make delivery of certain securities or the
cash value of a securities index. A Fund may sell a futures contract in order to
offset a decrease in the market value of its portfolio securities that might
otherwise result from a market decline. A Fund may do so either to hedge the
value of its portfolio of securities as a whole, or to protect against declines,
occurring prior to sales of securities, in the value of the securities to be
sold. Conversely, a Fund may purchase a futures contract in anticipation of
purchases of securities. In addition, a Fund may utilize futures contracts in
anticipation of changes in the composition of its portfolio holdings.

Any gain derived by a Fund from the use of such instruments will be
treated as a combination of short-term and long-term capital gain and, if not
offset by realized capital losses incurred by the Fund, will be distributed to
shareholders and will be taxable to shareholders as a combination of ordinary
income and long-term capital gain.

A Fund may purchase and sell call and put options on futures contracts
traded on an exchange or board of trade. When a Fund purchases an option on a
futures contract, it has the right to assume a position as a purchaser or seller
of a futures contract at a specified exercise price at any time during the
option period. When a Fund sells an option on a futures contract, it becomes
obligated to purchase or sell a futures contract if the option is exercised. In
anticipation of a market advance, a Fund may purchase call options on futures
contracts as a substitute for the purchase of futures contracts to hedge against
a possible increase in the price of securities which a Fund intends to purchase.
Similarly, if the market is expected to decline, a Fund might purchase put
options or sell call options on futures contracts rather than sell futures
contracts. In connection with a Fund's position in a futures contract or option
thereon, a Fund will create a segregated account of cash or liquid securities or
will otherwise cover its position in accordance with applicable requirements of
the SEC.

The Funds may enter into contracts for the purchase or sale for future
delivery of securities, including index contracts. Futures contracts are
generally considered to be derivative securities. While futures contracts
provide for the delivery of securities, deliveries usually do not occur.
Contracts are generally terminated by entering into offsetting transactions.

The Funds may enter into such futures contracts to protect against the
adverse effects of fluctuations in security prices or interest rates without
actually buying or selling the securities. For example, if interest rates are
expected to increase, a Fund might enter into futures contracts for the sale of
debt securities. Such a sale would have much the same effect as selling an
equivalent value of the debt securities owned by the Fund. If interest rates did
increase, the value of the debt securities in the portfolio would decline, but
the value of the futures contracts to the Fund would increase at approximately
the same rate, thereby keeping the net asset value of the Fund from declining as
much as it otherwise would have. Similarly, when it is expected that interest
rates may decline, futures contracts may be purchased to hedge in anticipation
of subsequent purchases of securities at higher prices. Since the fluctuations
in the value of futures contracts should be similar to those of debt securities,
the Fund could take advantage of the anticipated rise in value of debt
securities without actually buying them until the market had stabilized. At that
time, the futures contracts could be liquidated and the Fund could then buy debt
securities on the cash market.

A stock index futures contract obligates the seller to deliver (and the
purchaser to take) an amount of cash equal to a specific dollar amount times the
difference between the value of a specific stock index at the close of the last
trading day of the contract and the price at which the agreement was made. Open
futures contracts are valued on a daily basis and a Fund may be obligated to
provide or receive cash reflecting any decline or increase in the contract's
value. No physical delivery of the underlying stocks in the index is made in the
future.

With respect to options on futures contracts, when a Fund is
temporarily not fully invested, it may purchase a call option on a futures
contract to hedge against a market advance. The purchase of a call option on a
futures contract is similar in some respects to the purchase of a call option on
an individual security. Depending on the pricing of the option compared to
either the price of the futures contract upon which it is based, or the price of
the underlying debt securities, it may or may not be less risky than ownership
of the futures contract or underlying debt securities. As with the purchase of
futures contracts, when a Fund is not fully invested, it may purchase a call
option on a futures contract to hedge against a market advance.

The writing of a call option on a futures contract constitutes a
partial hedge against the declining price of the security or foreign currency
which is deliverable upon exercise of the futures contract. If the futures price
at the expiration of the option is below the exercise price, the Fund will
retain the full amount of the option premium which provides a partial hedge
against any decline that may have occurred in the value of the Fund's portfolio
holdings. The writing of a put option on a futures contract constitutes a
partial hedge against the increasing price of the security or foreign currency
which is deliverable upon exercise of the futures contract. If the futures price
at the expiration of the option is higher than the exercise price, the Fund will
retain the full amount of the option premium which provides a partial hedge
against any increase in the price of securities which the Fund intends to
purchase.

Call and put options on stock index futures are similar to options on
securities except that, rather than the right to purchase or sell stock at a
specified price, options on a stock index future give the holder the right to
receive cash. Upon exercise of the option, the delivery of the futures position
by the writer of the option to the holder of the option will be accompanied by
delivery of the accumulated balance in the writer's futures margin account,
which represents the amount by which the market price of the futures contract,
at exercise, exceeds (in the case of a call) or is less than (in the case of a
put) the exercise price of the futures contract. If an option is exercised on
the last trading day prior to the expiration date of the option, the settlement
will be made entirely in cash equal to the difference between the exercise price
of the option and the closing price of the futures contract on the expiration
date.

If a put or call option which a Fund has written is exercised, the Fund
may incur a loss which will be reduced by the amount of the premium it received.
Depending on the degree of correlation between changes in the value of its
portfolio securities and changes in the value of its options positions, the
Fund's losses from existing options on futures may to some extent be reduced or
increased by changes in the value of portfolio securities. The purchase of a put
option on a futures contract is similar in some respects to the purchase of
protective puts on portfolio securities and for Federal tax purposes will be
considered a "short sale." For example, a Fund will purchase a put option on a
futures contract to hedge the Fund's portfolio against the risk of rising
interest rates.

To the extent that market prices move in an unexpected direction, a
Fund may not achieve the anticipated benefits of futures contracts or options on
futures contracts or may realize a loss. For example, if the Fund is hedged
against the possibility of an increase in interest rates and interest rates
decrease instead, the Fund would lose part or all of the benefit of the
increased value which it has because it would have offsetting losses in its
futures position. In addition, in such situations, if the Fund had insufficient
cash, it may be required to sell securities from its portfolio to meet daily
variation margin requirements. Such sales of securities may, but will not
necessarily, be at increased prices which reflect the rising market. A Fund may
be required to sell securities at a time when it may be disadvantageous to do
so.

Options on securities, futures contracts, options on futures contracts
and options on currencies may be traded on foreign exchanges. Such transactions
may not be regulated as effectively as similar transactions in the United
States, may not involve a clearing mechanism and related guarantees and are
subject to the risk of governmental actions affecting trading in or the prices
of foreign securities. Some foreign exchanges may be principal markets so that
no common clearing facility exists and a trader may look only to the broker for
performance of the contract. The value of such positions also could be adversely
affected by (i) other complex foreign political, legal and economic factors,
(ii) lesser availability than in the United States of data on which to make
trading decision, (iii) delays in the Company's ability to act upon economic
events occurring in foreign markets during non-business hours in the United
States, (iv) the imposition of different exercise and settlement terms and
procedures and margin requirements than in the United States and (v) lesser
trading volume. In addition, unless a Fund hedges against fluctuations in the
exchange rate between the U.S. dollar and the currencies in which trading is
done on foreign exchanges, any profits that a Fund might realize in trading
could be eliminated by adverse changes in the exchange rate, or the Fund could
incur losses as a result of those changes.

Further, with respect to options on futures contracts, a Fund may seek
to close out an option position by writing or buying an offsetting position
covering the same securities or contracts and have the same exercise price and
expiration date. The ability to establish and close out positions on options
will be subject to the maintenance of a liquid secondary market, which cannot be
assured.

FORWARD COMMITMENTS, WHEN-ISSUED SECURITIES AND DELAYED DELIVERY TRANSACTIONS
AND RELATED RISKS

All Funds except Alleghany/TAMRO Large Cap Value Fund,
Alleghany/Chicago Trust Small Cap Value Fund, Alleghany/TAMRO Small Cap Fund and
Alleghany/Chicago Trust Money Market Fund may purchase or sell securities on a
when-issued or delayed-delivery basis and make contracts to purchase or sell
securities for a fixed price at a future date beyond customary settlement time.
Securities purchased or sold on a when-issued, delayed-delivery or forward
commitment basis involve a risk of loss if the value of the security to be
purchased declines prior to the settlement date. Although a Fund would generally
purchase securities on a when-issued, delayed-delivery or forward commitment
basis with the intention of acquiring the securities, a Fund may dispose of such
securities prior to settlement if its Investment Adviser or Sub-Investment
Adviser deems it appropriate to do so.

The Funds may dispose of or negotiate a when-issued or forward
commitment after entering into these transactions. Such transactions are
generally considered to be derivative transactions. The Funds will normally
realize a capital gain or loss in connection with these transactions. For
purposes of determining a Fund's average dollar-weighted maturity, the maturity
of when-issued or forward commitment securities will be calculated from the
commitment date.

When a Fund purchases securities on a when-issued, delayed delivery or
forward commitment basis, the Fund's Custodian will maintain in a segregated
account cash or liquid securities having a value (determined daily) at least
equal to the amount of the Fund's purchase commitments. In the case of a forward
commitment to sell portfolio securities, the Custodian will hold the portfolio
securities themselves in a segregated account while the commitment is
outstanding. These procedures are designed to ensure that the Fund will maintain
sufficient assets at all times to cover its obligations under when-issued
purchases, forward commitments and delayed delivery transactions.

Swap Agreements - Alleghany/Blairlogie International Developed Fund and
Alleghany/Blairlogie Emerging Markets Fund may enter into equity index swap
agreements for purposes of attempting to gain exposure to the stocks making up
an index of securities in a market without actually purchasing those stocks.
Swap agreements are two-party contracts entered into primarily by institutional
investors for periods ranging from a few weeks to more than one year. In a
standard "swap" transaction, two parties agree to exchange the returns (or
differentials in rates of return) earned or realized on particular predetermined
investments or instruments. The gross returns to be exchanged or "swapped"
between the parties are calculated with respect to a "notional amount", i.e.,
the return on or increase in value of a particular dollar amount invested in a
"basket" of securities representing a particular index.

Most swap agreements entered into by a Fund calculate the obligations
of the parties to the agreement on a "net basis". Consequently, a Fund's current
obligations (or rights) under a swap agreement will generally be equal only to
the net amount to be paid or received under the agreement based on the relative
values of the positions held by each party to the agreement (the "net amount").
A Fund's current obligations under a swap agreement will be accrued daily
(offset against any amounts owing to the Fund) and any accrued but unpaid net
amounts owed to a swap counter party will be covered by the maintenance of a
segregated account consisting of assets determined to be liquid by the
Investment Adviser in accordance with procedures established by the Board of
Trustees, to avoid any potential leveraging of the Fund's portfolio. Obligations
under swap agreements so covered will not be construed to be "senior securities"
for purposes of a Fund's investment restriction concerning senior securities. A
Fund will not enter into a swap agreement with any single party if the net
amount owed or to be received under existing contracts with that party would
exceed 5% of the Fund's assets.

Whether a Fund's use of swap agreements will be successful in
furthering its investment objective will depend on the Investment Adviser's
ability to predict correctly whether certain types of investments are likely to
produce greater returns than other investments. Because they are two-party
contracts and because they may have terms of greater than seven days, swap
agreements may be considered to be illiquid. Moreover, a Fund bears the risk of
loss of the amount expected to be received under a swap agreement in the event
of the default or bankruptcy of a swap agreement counterparty. The Funds will
enter into swap agreements only with counterparties that meet certain standards
of creditworthiness (generally, such counterparties would have to be eligible
counterparties under the terms of the Funds' repurchase agreement guidelines).
Certain restrictions imposed on the Funds by the Internal Revenue Code may limit
the Funds' ability to use swap agreements. The swaps market is a relatively new
market and is largely unregulated. It is possible that developments in the swaps
market, including potential government regulation, could adversely affect a
Fund's ability to terminate existing swap agreements or to realize amounts to be
received under such agreements.

INTEREST RATE SWAPS AND RELATED RISKS

Only Alleghany/Chicago Trust Balanced Fund, Alleghany/Chicago Trust
Bond Fund and Alleghany/Chicago Trust Municipal Bond Fund, in order to help
enhance the value of their respective portfolios or manage exposure to different
types of investments, may enter into interest rate, currency and mortgage swap
agreements and may purchase and sell interest rate "caps", "floors" and
"collars" for hedging purposes and not for speculation. Interest rate swaps are
generally considered to be derivative transactions. A Fund will typically use
interest rate swaps to preserve a return on a particular investment or portion
of its portfolio or to shorten the effective duration of its portfolio
investments. Swaps involve the exchange between a Fund and another party of
their respective rights to receive interest, e.g., an exchange of fixed-rate
payments for floating-rate payments. In a typical interest rate swap agreement,
one party agrees to make regular payments equal to a floating interest rate on a
specified amount in return for payments equal to a fixed interest rate on the
same amount for a specified period. For example, if a Fund holds an
interest-paying security whose interest rate is reset once a year, it may swap
the right to receive interest at this fixed-rate for the right to receive
interest at a rate that is reset daily. Such a swap position would offset
changes in the value of the underlying security because of subsequent changes in
interest rates. This would protect a Fund from a decline in the value of the
underlying security due to rising rates but would also limit its ability to
benefit from declining interest rates. A Fund will enter into interest rate
swaps only on a net basis (i.e. the two payment streams will be netted out, with
the Fund receiving or paying only the net amount of the two payments). The net
amount of the excess, if any, of a Fund's obligations over its entitlements with
respect to each interest rate swap will be accrued on a daily basis. An amount
of cash or liquid securities having an aggregate net asset value at least equal
to the accrued excess will be maintained in a segregated account by the
Company's custodian bank. Inasmuch as these transactions are entered into for
good faith hedging purposes, the Funds and the Investment Adviser believe that
such obligations do not constitute senior securities as defined in the 1940 Act
and, accordingly, will not treat them as being subject to the Funds' borrowing
restrictions.

Interest rate swaps do not involve the delivery of securities or other
underlying assets or principal. Thus, if the other party to an interest rate
swap defaults, a Fund's risk of loss consists of the net amount of interest
payments that the Fund is contractually entitled to receive.

In a cap or floor, one party agrees, usually in return for a fee, to
make payments under particular circumstances. For example, the purchaser of an
interest rate cap has the right to receive payments to the extent a specified
interest rate exceeds an agreed level; the purchaser of an interest rate floor
has the right to receive payments to the extent a specified interest rate falls
below an agreed level. A collar entitles the purchaser to receive payments to
the extent a specified interest rate falls outside an agreed range.

Swap agreements may involve leverage and may be highly volatile.
Depending on how they are used, they may have a considerable impact on a Fund's
performance. Swap agreements involve risks depending upon the other party's
creditworthiness and ability to perform, as judged by the Investment Adviser as
well as the Fund's ability to terminate its swap agreements or reduce its
exposure through offsetting transactions.

ASSET-BACKED SECURITIES AND RELATED RISKS

Alleghany/Chicago Trust Growth & Income Fund, Alleghany/Blairlogie
International Developed Fund, Alleghany/Blairlogie Emerging Markets Fund,
Alleghany/Montag & Caldwell Balanced Fund, Alleghany/Chicago Trust Balanced
Fund, Alleghany/Chicago Trust Bond Fund and Alleghany/Chicago Trust Municipal
Bond Fund may invest in asset-backed securities. Asset-backed securities are
securities backed by installment contracts, credit card and other receivables or
other financial type assets. Asset-backed securities represent interests in
"pools" of assets in which payments of both interest and principal on the
securities are made monthly, thus in effect "passing through" monthly payments
made by the individual borrowers on the assets underlying securities, net of any
fees paid to the issuer or guarantor of the securities. The average life of
asset-backed securities varies with the maturities of the underlying
instruments. An asset-backed security's stated maturity may be shortened, and
the security's total return may be difficult to predict precisely. The risk that
recovery on repossessed collateral might be unavailable or inadequate to support
payments on asset-backed securities is greater than in the case for
mortgage-backed securities. Falling interest rates generally result in an
increase in the rate of prepayments of mortgage loans while rising interest
rates generally decrease the rate of prepayments. An acceleration in prepayments
in response to sharply falling interest rates will shorten the security's
average maturity and limit the potential appreciation in the security's value
relative to a conventional debt security.

MORTGAGE-BACKED SECURITIES AND MORTGAGE PASS-THROUGH SECURITIES
AND RELATED RISKS

Alleghany/Chicago Trust Growth & Income Fund, Alleghany/Blairlogie
International Developed Fund, Alleghany/Blairlogie Emerging Markets Fund,
Alleghany/Montag & Caldwell Balanced Fund, Alleghany/Chicago Trust Balanced
Fund, Alleghany/Chicago Trust Bond Fund and Alleghany/Chicago Trust Municipal
Bond Fund may invest in mortgage-backed securities. The timely payment of
principal and interest on mortgage-backed securities issued or guaranteed by
Ginnie Mae (formerly known as the Government National Mortgage Association
("GNMA")) is backed by GNMA and the full faith and credit of the U.S.
Government. Also, securities issued by GNMA and other mortgage-backed securities
may be purchased at a premium over the maturity value of the underlying
mortgages. This premium is not guaranteed and would be lost if prepayment
occurs. Mortgage-backed securities issued by U.S. Government agencies or
instrumentalities other than GNMA are not "full faith and credit" obligations.
Certain obligations, such as those issued by the Federal Home Loan Bank, are
supported by the issuer's right to borrow from the U.S. Treasury. Others, such
as those issued by the Federal National Mortgage Association ("FNMA"), are
supported only by the credit of the issuer. Unscheduled or early payments on the
underlying mortgages may shorten the securities' effective maturities and reduce
returns. These Funds may agree to purchase or sell these securities with payment
and delivery taking place at a future date.

Other mortgage-backed securities are issued by private issuers,
generally originators of and investors in mortgage loans, including savings
associations, mortgage bankers, commercial banks, investment bankers and special
purpose entities. These private mortgage-backed securities may be supported by
U.S. Government mortgage-backed securities or some form of non-government credit
enhancement. Mortgage-backed securities have either fixed or adjustable interest
rates. The rate of return on mortgage-backed securities may be affected by
prepayments of principal on the underlying loans, which generally increase as
interest rates decline; as a result, when interest rates decline, holders of
these securities normally do not benefit from appreciation in market value to
the same extent as holders of other non-callable debt securities. In addition,
like other debt securities, the values of mortgage-related securities, including
government and government-related mortgage pools, generally will fluctuate in
response to market interest rates.

Mortgage-backed securities have greater market volatility then other
types of securities. In addition, because prepayments often occur at times when
interest rates are low or are declining, the Funds may be unable to reinvest
such funds in securities which offer comparable yields. The yields provided by
these mortgage securities have historically exceeded the yields on other types
of U.S. Government securities with comparable maturities in large measure due to
the risks associated with prepayment features. (See "General Risks of Mortgage
Securities" on p. 20.)

For Federal tax purposes other than diversification under Subchapter M
of the Internal Revenue Code of 1986, as amended (the "Code"), mortgage-backed
securities are not considered to be separate securities but rather "grantor
trusts" conveying to the holder an individual interest in each of the mortgages
constituting the pool.

The mortgage securities which are issued or guaranteed by GNMA, Federal
Home Loan Mortgage Corporation ("FHLMC") or FNMA ("certificates") are called
pass-through certificates because a pro-rata share of both regular interest and
principal payments (less GNMA's, FHLMC's or FNMA's fees and any applicable loan
servicing fees), as well as unscheduled early prepayments on the underlying
mortgage pool, are passed through monthly to the holder of the certificate
(i.e., the portfolio).

Each of these Funds may also invest in pass-through certificates issued
by non-governmental issuers. Pools of conventional residential mortgage loans
created by such issuers generally offer a higher rate of interest than
government and government-related pools because there are no direct or indirect
government guarantees of payment. Timely payment of interest and principal of
these pools is, however, generally supported by various forms of insurance or
guarantees, including individual loan, title, pool and hazard insurance. The
insurance and guarantees are issued by government entities, private insurance
and the mortgage poolers. Such insurance and guarantees and the creditworthiness
of the issuers thereof will be considered in determining whether a
mortgage-related security meets the Fund's quality standards. The Fund may buy
mortgage-related securities without insurance or guarantees if through an
examination of the loan experience and practices of the poolers, the investment
manager determines that the securities meet the Fund's quality standards.

COLLATERALIZED MORTGAGE OBLIGATIONS ("CMOS"), REAL ESTATE MORTGAGE INVESTMENT
CONDUITS ("REMICS") AND MULTI-CLASS PASS-THROUGHS AND RELATED RISKS

Alleghany/Chicago Trust Growth & Income Fund, Alleghany/Blairlogie
International Developed Fund, Alleghany/Blairlogie Emerging Markets Fund,
Alleghany/Montag & Caldwell Balanced Fund, Alleghany/Chicago Trust Balanced
Fund, Alleghany/Chicago Trust Bond Fund and Alleghany/Chicago Trust Municipal
Bond Fund may also invest in certain debt obligations which are collateralized
by mortgage loans or mortgage pass-through securities. These obligations are
generally considered to be derivative securities. CMOs and REMICs are debt
instruments issued by special-purpose entities which are secured by pools or
mortgage loans or other mortgage-backed securities. Multi-class pass-through
securities are equity interests in a trust composed of mortgage loans or other
mortgage-backed securities. Payments of principal and interest on underlying
collateral provides the funds to pay debt service on the CMO or REMIC or make
scheduled distributions on the multi-class pass-through securities. CMOs, REMICs
and multi-class pass-through securities (collectively, CMOs unless the context
indicates otherwise) may be issued by agencies or instrumentalities of the U.S.
Government or by private organizations.

In a CMO, a series of bonds or certificates is issued in multiple
classes. Each class of CMOs, often referred to as a "tranche", is issued at a
specified coupon rate or adjustable rate tranche and has a stated maturity or
final distribution date. Principal prepayments on collateral underlying a CMO
may cause it to be retired substantially earlier than the stated maturities or
final distribution dates. Interest is paid or accrues on all classes of a CMO on
a monthly, quarterly or semi-annual basis. The principal and interest on the
underlying mortgages may be allocated among several classes of a series of a CMO
in many ways. In a common structure, payments of principal, including any
principal prepayments, on the underlying mortgages are applied to the classes of
a series of a CMO in the order of their respective stated maturities or final
distribution dates, so that no payment of principal will be made on any class of
a CMO until all other classes having an earlier stated maturity or final
distribution date have been paid in full.

One or more tranches of a CMO may have coupon rates which reset
periodically at a specified increment over an index such as the London Interbank
Offered Rate ("LIBOR"). These adjustable-rate tranches, known as "floating-rate
CMOs", will be considered as adjustable-rate mortgage securities ("ARMs") by the
Funds. Floating-rate CMOs may be backed by fixed-rate or adjustable-rate
mortgages; to date, fixed-rate mortgages have been more commonly utilized for
this purpose. Floating-rate CMOs are typically issued with lifetime "caps" on
the coupon rate thereon. These caps, similar to the caps on adjustable-rate
mortgages, represent a ceiling beyond which the coupon rate on a floating-rate
CMO may not be increased regardless of increases in the interest rate index to
which the floating-rate CMO is geared.

REMICs are private entities formed for the purpose of holding a fixed
pool of mortgages secured by an interest in real property. REMICs are similar to
CMOs in that they issue multiple classes of securities. As with CMOs, the
mortgages which collateralize the REMICs in which the Funds may invest include
mortgages backed by GNMA certificates or other mortgage pass-throughs issued or
guaranteed by the U.S. Government, its agencies or instrumentalities or issued
by private entities, which are not guaranteed by any government agency.

Yields on privately issued CMOs as described above have been
historically higher than the yields on CMOs issued or guaranteed by U.S.
Government agencies. However, the risk of loss due to default on such
instruments is higher since they are not guaranteed by the U.S. Government.
These Funds will not invest in subordinated privately issued CMOs.

Resets - The interest rates paid on the ARMs and CMOs in which these
Funds may invest generally are readjusted at intervals of one year or less to an
increment over some predetermined interest rate index. There are three main
categories of indices: those based on U.S. Treasury securities, those derived
from a calculated measure such as a cost of funds index or a moving average of
mortgage rates. Commonly utilized indices include: the one-year, three-year and
five-year constant maturity Treasury rates, the three-month Treasury bill rate,
the six-month Treasury bill rate, rates on longer-term Treasury securities, the
11th District Federal Home Loan Bank Cost of Funds, the National Median Cost of
Funds, the one-, three- or six-month or one-year LIBOR, the prime rate of a
specific bank or commercial paper rates. Some indices, such as the one-year
constant maturity Treasury rate, closely mirror changes in market interest rate
levels. Others, such as the 11th District Federal Home Loan Bank Cost of Funds
index, tend to lag behind changes in market rate levels and tend to be somewhat
less volatile.

Caps and Floors - The underlying mortgages which collateralize the ARMs
and CMOs in which these Funds may invest will frequently have caps and floors
which limit the maximum amount by which the loan rate to the residential
borrower may change up or down (1) per reset or adjustment interval and (2) over
the life of the loan. Some residential mortgage loans restrict periodic
adjustments by limiting changes in the borrower's monthly principal and interest
payments rather than limiting interest rate changes. These payment caps may
result in negative amortization.

STRIPPED MORTGAGE SECURITIES AND RELATED RISKS

Alleghany/Chicago Trust Growth & Income Fund, Alleghany/Blairlogie
International Developed Fund, Alleghany/Blairlogie Emerging Markets Fund,
Alleghany/Montag & Caldwell Balanced Fund, Alleghany/Chicago Trust Balanced
Fund, Alleghany/Chicago Trust Bond Fund and Alleghany/Chicago Trust Municipal
Bond Fund may purchase participations in trusts that hold U.S. Treasury and
agency securities and may also purchase zero coupon U.S. Treasury obligations,
Treasury receipts and other stripped securities that evidence ownership in
either the future interest payments or the future principal payments on U.S.
Government obligations. These participations are issued at a discount to their
face value and may exhibit greater price volatility than ordinary debt
securities because of the manner in which their principal and interest are
returned to investors. The Funds will only invest in government-backed mortgage
securities. The Investment Adviser will consider liquidity needs of a Fund when
any investment in zero coupon obligations is made. The stripped mortgage
securities in which the Funds may invest will only be issued or guaranteed by
the U.S. Government, its agencies or instrumentalities. Stripped mortgage
securities have greater market volatility than other types of mortgage
securities in which the Funds invest.

Stripped mortgage securities are usually structured with two classes
that receive different proportions of the interest and principal distributions
on a pool of mortgage assets. A common type of stripped mortgage security will
have one class receiving some of the interest and most of the principal from the
mortgage assets, while the other class will receive most of the interest and the
remainder of the principal. In the most extreme case, one class will receive all
of the interest (the interest-only or "IO" class), while the other class will
receive all of the principal (the principal-only or "PO" class). The yield to
maturity on an IO class is extremely sensitive not only to changes in prevailing
interest rates but also to the rate of principal payments (including
prepayments) on the related underlying mortgage assets, and a rapid rate of
principal payments may have a material adverse effect on the yield to maturity
of any such IOs held by a Fund. If the underlying mortgage assets experience
greater than anticipated prepayments of principal, the Fund may fail to fully
recoup its initial investment in these securities even if the securities are
rated in the highest rating categories ("Aaa" or "AAA" by Moody's or S&P,
respectively).

Although stripped mortgage securities are purchased and sold by
institutional investors through several investment banking firms acting as
brokers or dealers, these securities were only recently developed. As a result,
established trading markets have not yet been fully developed. Accordingly,
certain of these securities may generally be illiquid. The Fund will treat
stripped mortgage securities as illiquid securities except for those securities
which are issued by U.S. Government agencies and instrumentalities and backed by
fixed rate mortgages whose liquidity is monitored by the Investment Adviser,
subject to the supervision of the Board of Trustees. The staff of the SEC has
indicated that it views such securities as illiquid. Until further clarification
of this matter is provided by the staff, a Fund's investment in stripped
mortgage securities will be treated as illiquid and will, together with any
other illiquid investments, not exceed 15% of such Fund's net assets.

OTHER MORTGAGE-BACKED SECURITIES

GENERAL RISKS OF MORTGAGE SECURITIES

The mortgage securities in which a Fund invests differ from
conventional bonds in that principal is paid back over the life of the mortgage
security rather than at maturity. As a result, the holder of the mortgage
securities (i.e., the Fund) receives monthly scheduled payments of principal and
interest and may receive unscheduled principal payments representing prepayments
on the underlying mortgages. When the holder reinvests the payments and any
unscheduled prepayments of principal it receives, it may receive a rate of
interest which is lower than the rate on the existing mortgage securities. For
this reason, mortgage securities may be less effective than other types of
securities as a means of "locking in" long-term interest rates.

A decline in interest rates may lead to a faster rate of repayment of
the underlying mortgages and expose a Fund to a lower rate of return upon
reinvestment. To the extent that such mortgage-backed securities are held by a
Fund, the prepayment right of mortgagors may decrease or limit the increase in
net asset value of the Fund because the value of the mortgage-backed securities
held by the Fund may decline more than or may not appreciate as much as the
price of non-callable debt securities. To the extent market interest rates
increase beyond the applicable cap or maximum rate on a mortgage security, the
market value of the mortgage security would likely decline to the same extent as
a conventional fixed-rate security. The volatility of the security would likely
increase, however, because the expected decline in prepayments would lead to
longer effective maturity of the underlying mortgages.

In addition, to the extent mortgage securities are purchased at a
premium, mortgage foreclosures and unscheduled principal prepayments may result
in some loss of the holder's principal investment to the extent of the premium
paid. On the other hand, if mortgage securities are purchased at a discount,
both a scheduled payment of principal and an unscheduled prepayment of principal
will increase current and total returns and will accelerate the recognition of
income which when distributed to shareholders will be taxable as ordinary
income.

With respect to pass-through mortgage pools issued by non-governmental
issuers, there can be no assurance that the private insurers associated with
such securities can meet their obligations under the policies. Although the
market for such non-governmental issued or guaranteed mortgage securities is
becoming increasingly liquid, securities issued by certain private organizations
may not be readily marketable. The purchase of such securities is subject to
each Fund's limit with respect to investment in illiquid securities.

FOREIGN SECURITIES

All Funds except Alleghany/Chicago Trust Small Cap Value Fund,
Alleghany/Chicago Trust Municipal Bond Fund and Alleghany/Chicago Trust Money
Market Fund may invest in foreign securities. For country allocations, a company
is considered to be located in the country in which it is domiciled, in which it
is primarily traded, from which it derives a significant portion of its revenues
or in which a significant portion of its goods or services are produced.

Alleghany/Blairlogie International Developed Fund and
Alleghany/Blairlogie Emerging Markets Fund may invest directly in foreign equity
securities, U.S. dollar- or foreign currency-denominated foreign corporate debt
securities, foreign preferred securities, certificates of deposit, fixed time
deposits and bankers' acceptances issued by foreign banks, obligations of
foreign governments or their subdivisions, agencies and instrumentalities,
international agencies and supranational entities and securities represented by
ADRs, EDRs or GDRs. ADRs are dollar-denominated receipts issued generally by
domestic banks and representing the deposit with the bank of a security of a
foreign issuer and are publicly traded on exchanges or over-the-counter in the
United States and also trade in public or private markets in other countries.

Alleghany/Blairlogie International Developed Fund and
Alleghany/Blairlogie Emerging Markets Fund may invest in World Equity Benchmark
Shares (WEBS), Optimized Portfolios as Listed Securities (OPALS) and WIDGITs
(W.I. Carr Developing Markets Growth Index Tracker Programme). These investments
provide investors with access to global equity markets and are primarily used to
facilitate asset allocation switches and to overcome difficulties in markets
with structural peculiarities. WEBS are issued by Foreign Fund, Inc., an
open-end investment company registered under the 1940 Act, in a number of
country-specific series. Each series is a diversified, country-specific index
portfolio designed to track a specific Morgan Stanley Capital International
(MSCI) country index. WEBS are listed on the American Stock Exchange in U.S.
dollars and the investment adviser is BZW Barclays Global Fund Advisors. OPALS,
which are securities offered through Morgan Stanley Capital, LLC, have a hybrid
structure. They have debt characteristics (fixed redemption and semi-annual
interest payments) but performance is equity driven. Each series of OPALS is
designed to track the performance of a given MSCI or local index. There are both
industry-specific and country-specific OPALS. Globally, OPALS are available to
gain exposure to developed and emerging markets. OPALS were established for
qualifying U.S. investors and are not listed on any U.S. exchange. To qualify
for purchase, U.S. investors must be (i) qualified institutional buyers (QIBs),
(ii) qualified purchasers (QPs) and (iii) not subject to ERISA. QIB and QP
status is generally conferred on those clients controlling over $100 million in
assets. WIDGITs are equity-linked products in which the issuer buys shares on
the local market and issues their instrument against the shares. WIDGITs are
generally classified as derivatives and have the general risks associated with
derivatives.

Investment in foreign securities is subject to special investment risks
that differ in some respects from those related to investments in securities of
U.S. domestic issuers. Such risks include: political, social or economic
instability in the country of the issuer, the difficulty of predicting
international trade patterns, the possibility of the imposition of exchange
controls, expropriation, limits on removal of currency or other assets,
nationalization of assets, foreign withholding and income taxation, and
different foreign trading practices (including higher trading commissions,
custodial charges and delayed settlements). Such securities may be subject to
greater fluctuations in price than securities issued by U.S. corporations or
issued or guaranteed by the U.S. Government, its agencies or instrumentalities.
The markets on which such securities trade may have less volume and liquidity
and may be more volatile than securities markets in the U.S. In addition, there
may be less publicly available information about a foreign company than about a
U.S. domiciled company. Foreign companies generally are not subject to uniform
accounting, auditing and financial reporting standards comparable to those
applicable to U.S. domestic companies. There is generally less government
regulation of securities exchanges, brokers and listed companies abroad than in
the U.S. Confiscatory taxation or diplomatic developments could also affect
investment in those countries.

In addition, foreign branches of U.S. banks, foreign banks and foreign
issuers may be subject to less stringent reserve requirements and to different
accounting, auditing, reporting and recordkeeping standards than those
applicable to domestic branches of U.S. banks and U.S. domestic issuers.

For many foreign securities, U.S. dollar-denominated ADRs, which are
traded in the United States on exchanges or over-the-counter, are issued by
domestic banks. ADRs represent the right to receive securities of foreign
issuers deposited in a domestic bank or a correspondent bank. ADRs do not
eliminate the risk inherent in investing in the securities of foreign issuers.
However, by investing in ADRs rather than directly in stock of foreign issuers,
a Fund can avoid currency risks during the settlement period for either
purchases or sales. In general, there is a large, liquid market in the United
States for many ADRs. The information available for ADRs is subject to the
accounting, auditing and financial reporting standards of the domestic market or
exchange on which they are traded, in which standards are more uniform and more
exacting than those to which many foreign issuers may be subject. The above
Funds may also invest in EDRs, which are receipts evidencing an arrangement with
a European bank similar to that for ADRs and are designed for use in the
European securities markets.

Certain ADRs and EDRs, typically those denominated as unsponsored,
require the holders to bear most of the costs of such facilities, while issuers
of sponsored facilities normally pay more of these costs. The depository of an
unsponsored facility frequently is under no obligation to distribute shareholder
communications received from the issuer of the deposited securities or to pass
through the voting rights to facility holders in respect to the deposited
securities, whereas the depository of a sponsored facility typically distributes
shareholder communications and passes through the voting rights.

Alleghany/Blairlogie Emerging Markets Fund, and to a lesser extent
Alleghany/Blairlogie International Developed Fund, may invest in the securities
of countries considered to be developing markets. The risks of investing in
foreign securities are particularly high when securities of issuers based in
developing or "emerging market" countries are involved. Investing in emerging
market countries involves certain risks not typically associated with investing
in U.S. securities and imposes additional risks than the risks of investing in
foreign, developed countries. These risks may include: greater risks of
nationalization or expropriation of assets or confiscatory taxation, currency
devaluations, currency exchange rate fluctuations, greater social economic and
political uncertainty and instability (including the risk of war), more
substantial government involvement in the economy, higher rates of inflation,
less government supervision and regulation of securities markets and
participants in those markets, controls on foreign investment and limitations on
repatriation of invested capital and on the Fund's ability to exchange local
currencies for U.S. dollars, unavailability of currency hedging techniques in
certain emerging market countries, the fact that companies in emerging market
countries may be smaller, less seasoned and newly organized companies, the
difference in or lack of auditing and financial reporting standards, which may
result in unavailability of material information about issuers; difficulties in
obtaining and/or enforcing a judgment in a foreign court and greater price
volatility, substantially less liquidity and significantly smaller market
capitalization of securities markets.

Special Risks of Investing in Russian and Other Eastern European Securities

Alleghany/Blairlogie Emerging Markets Fund may invest a portion of its
assets in securities of issuers located in Russia and other Eastern European
countries. The political, legal and operational risks of investing in the
securities of Russian and other Eastern European issuers, and of having assets
custodied within these countries, may be particularly acute. Investment in
Eastern European countries may involve acute risks of nationalization,
expropriation and confiscatory taxation. The communist governments of a number
of Eastern European countries expropriated large amounts of private property in
the past, in many cases without adequate compensation, and there can be no
assurance that such expropriation will not occur in the future. Also, certain
Eastern European economies are characterized by an absence of developed legal
structures governing private and foreign investments and private property in
these countries.

In addition, governments in certain Eastern European countries may
require that a governmental or quasi-governmental authority act as custodian of
a Fund's assets invested in such country. To the extent such governmental or
quasi-governmental authorities do not satisfy the requirements of the 1940 Act
to act as foreign custodians of the Fund's cash and securities, the Fund's
investment in such countries may be limited or may be required to be effected
through intermediaries. The risk of loss through governmental confiscation may
be increased in such circumstances.

Investments in securities of Russian issuers may involve a particularly
high degree of risk and special considerations not typically associated with
investing in U.S. and other more developed markets, many of which stem from
Russia's continuing political and economic instability and the slow-paced
development of its market economy. Investments in Russian securities should be
considered highly speculative. Such risks and special considerations include:
(a) delays in settling portfolio transactions and the risk of loss arising out
of Russia's system of share registration and custody (see below), (b)
pervasiveness of corruption, insider trading and crime in the Russian economic
system, (c) difficulties associated in obtaining accurate market valuations of
many Russian securities, based partly on the limited amount of publicly
available information, (d) the general financial condition of Russian companies,
which may involve particularly large amounts of inter-company debt and (e) the
risk that the Russian tax system will not be reformed to prevent inconsistent,
retroactive and/or exorbitant taxation or, in the alternative, the risk that a
reformed tax system may result in the inconsistent and unpredictable enforcement
of the new tax laws. Also, there is the risk that the government of Russia or
other executive or legislative bodies may decide not to continue to support the
economic reform programs implemented since the dissolution of the Soviet Union
and could follow radically different political and/or economic policies to the
detriment of investors, including non-market-oriented policies such as the
support of certain industries at the expense of other sectors or investors, a
return to the centrally planned economy that existed prior to the dissolution of
the Soviet Union or the nationalization of privatized enterprises.

A risk of particular note with respect to direct investment in Russian
securities is the way in which ownership of shares of companies is normally
recorded. Ownership of shares (except where shares are held through depositories
that meet the requirements of the 1940 Act) is defined according to entries in
the company's share register and normally evidenced by extracts from the
register or, in certain limited circumstances, by formal share certificates.
However, there is no central registration system for shareholders and these
services are carried out by the companies themselves or by registrars located
throughout Russia. These registrars are not necessarily subject to effective
state supervision nor are they licensed with any governmental entity. It is
possible for a Fund to lose its registration through fraud, negligence or even
mere oversight. While a Fund will strive to ensure that its interest continues
to be appropriately recorded, which may involve a custodian or other agent
inspecting the share register and obtaining extracts of share registers through
regular confirmations, these extracts have no legal enforceability and it is
possible that subsequent illegal amendment or other fraudulent act may deprive
the Fund of its ownership rights or improperly dilute its interests. In
addition, while applicable Russian regulations impose liability on registrars
for losses resulting from their errors, it may be difficult for a Fund to
enforce any rights it may have against the registrar or issuer of the securities
in the event of loss of share registration.

Also, although a Russian public enterprise with more than 3,500
shareholders is required by law to contract out the maintenance of its
shareholder register to an independent entity that meets certain criteria, this
regulation has not always been strictly enforced in practice. Because of this
lack of independence, management of a company may be able to exert considerable
influence over who can purchase and sell the company's shares by illegally
instructing the registrar to refuse to record transactions in the share
register. In addition, so-called "financial-industrial groups" have emerged in
recent years that seek to deter outside investors from interfering in the
management of companies they control. These practices may prevent a Fund from
investing in the securities of certain Russian companies deemed suitable by the
Fund's Investment Adviser. Further, this also could cause a delay in the sale of
Russian securities held by a Fund if a potential purchases is deemed unsuitable,
which may expose the Fund to potential loss on the investment.

FOREIGN CURRENCIES

Many of the international equity securities in which
Alleghany/Blairlogie International Developed Fund and Alleghany/Blairlogie
Emerging Markets Fund invest will be traded in foreign currencies. These Funds
may engage in certain foreign currency transactions, such as forward foreign
currency exchange contracts, to guard against fluctuations in currency exchange
rates in relation to the U.S. dollar or to the weighting of particular foreign
currencies. In addition, each Fund may buy and sell foreign currency futures
contracts and options on foreign currencies and foreign currency futures.

A forward foreign currency exchange contract involves an obligation to
purchase or sell a specific currency at a future date, which may be any fixed
number of days from the date of the contract agreed upon by the parties, at a
price set at the time of the contract. By entering into a forward foreign
currency exchange contract, the fund "locks in" the exchange rate between the
currency it will deliver and the currency it will receive for the duration of
the contract. As a result, a Fund reduces its exposure to changes in the value
of the currency it will deliver and increases its exposure to changes in the
value of the currency it will exchange into. Contracts to sell foreign
currencies would limit any potential gain which might be realized by a Fund if
the value of the hedged currency increases. A Fund may enter into these
contracts of the purpose of hedging against foreign exchange risks arising from
the Fund's investment or anticipated investment in securities denominated in
foreign currencies. Such hedging transactions may not be successful and may
eliminate any chance for a Fund to benefit from favorable fluctuations in
relevant foreign currencies.

Each of these Funds may also enter into forward foreign currency
exchange contracts for purposes of increasing exposure to a foreign currency or
to shift exposure to foreign currency fluctuations from one currency to another.
To the extent that they do so, the Funds will be subject to the additional risk
that the relative value of currencies will be different than anticipated by the
particular Fund's Investment Adviser. A Fund may use one currency (or a basket
of currencies) to hedge against adverse changes in the value of another currency
(or a basket of currencies) when exchange rates between the two currencies are
positively correlated. A Fund will segregate assets determined to be liquid by
the Investment Adviser in accordance with procedures established by the Board of
Trustees in a segregated account to cover forward currency contracts entered
into for non-hedging purposes. The Funds may also use foreign currency futures
contracts and related options on currencies for the same reasons for which
forward foreign currency exchange contracts are used.

MUNICIPAL SECURITIES

Alleghany/Chicago Trust Municipal Bond Fund is expected to maintain a
dollar-weighted average maturity of between three and ten years under normal
market conditions. An assessment of a portfolio's dollar-weighted average
maturity requires the consideration of a number of factors, including each
bond's yield, coupon interest payments, final maturity, call and put features
and prepayment exposure. The Fund's computation of its dollar-weighted average
maturity is based upon estimated factors, and there can be no assurance that the
anticipated average weighted maturity will be attained. For example, a change in
interest rates generally will affect a portfolio's dollar-weighted average
maturity.

<PAGE>

OTHER INVESTMENTS

The Board of Trustees may, in the future, authorize a Fund to invest in
securities other than those listed here and in the Prospectus, provided that
such investment would be consistent with that Fund's investment objective and
that it would not violate any fundamental investment policies or restrictions
applicable to that Fund.

INVESTMENT RESTRICTIONS

The investment restrictions set forth below are fundamental policies
and may not be changed as to a Fund without the approval of a majority of the
outstanding voting shares (as defined in the 1940 Act) of the Fund. Unless
otherwise indicated, all percentage limitations governing the investments of
each Fund apply only at the time of transaction. Accordingly, if a percentage
restriction is adhered to at the time of investment, a later increase or
decrease in the percentage which results from a relative change in values or
from a change in a Fund's total assets will not be considered a violation.

Except as set forth under "INVESTMENT OBJECTIVES, PRINCIPAL INVESTMENT
STRATEGIES AND RISKS" and "OTHER INVESTMENT STRATEGIES" in the Prospectus, each
Fund may not:

(1) As to 75% of the total assets of each Fund, with the exception of
Alleghany/Veredus SciTech Fund, purchase the securities of any one
issuer (other than securities issued by the U.S. Government or its
agencies or instrumentalities) if immediately after such purchase, more
than 5% of the value of the Fund's total assets would be invested in
securities of such issuer;

(2) Purchase or sell real estate (but this restriction shall not prevent
the Funds from investing directly or indirectly in portfolio
instruments secured by real estate or interests therein or acquiring
securities of real estate investment trusts or other issuers that deal
in real estate), interests in oil, gas and/or mineral exploration or
development programs or leases;

(3) Purchase or sell commodities or commodity contracts, except that a Fund
may enter into futures contracts and options thereon in accordance with
such Fund's investment objectives and policies;

(4) Make investments in securities for the purpose of exercising control;

(5) Purchase the securities of any one issuer if, immediately after such
purchase, a Fund would own more than 10% of the outstanding voting
securities of such issuer;

(6) Sell securities short or purchase securities on margin, except such
short-term credits as are necessary for the clearance of transactions.
For this purpose, the deposit or payment by a Fund for initial or
maintenance margin in connection with futures contracts is not
considered to be the purchase or sale of a security on margin;

(7) Make loans, except that this restriction shall not prohibit (a) the
purchase and holding of debt instruments in accordance with a Fund's
investment objectives and policies, (b) the lending of portfolio
securities or (c) entry into repurchase agreements with banks or
broker-dealers;

(8) Borrow money or issue senior securities, except that each Fund may
borrow from banks and enter into reverse repurchase agreements for
temporary purposes in amounts up to one-third of the value of its total
assets at the time of such borrowing. The Funds may not mortgage,
pledge or hypothecate any assets, except in connection with any such
borrowing and in amounts not in excess of the lesser of the dollar
amounts borrowed or 10% of the value of the total assets of the Fund at
the time of its borrowing. All borrowings will be done from a bank and
asset coverage of at least 300% is required. A Fund will not purchase
securities when borrowings exceed 5% of that Fund's total assets;

(9) Purchase the securities of issuers conducting their principal business
activities in the same industry (other than obligations issued or
guaranteed by the U.S. Government, its agencies or instrumentalities)
if immediately after such purchase the value of a Fund's investments in
such industry would exceed 25% of the value of the total assets of the
Fund, except for Alleghany/Veredus SciTech Fund, which will have a
concentration in the science and technology sector;

(10) Act as an underwriter of securities, except that, in connection with
the disposition of a security, a Fund may be deemed to be an
"underwriter" as that term is defined in the 1933 Act;

(11) Invest in puts, calls, straddles or combinations thereof except to the
extent disclosed in the Prospectus;

(12) Invest more than 5% of its total assets in securities of companies less
than three years old. Such three-year periods shall include the
operation of any predecessor company or companies.

TRUSTEES AND OFFICERS

Under Delaware law, the business and affairs of the Company are managed
under the direction of the Board of Trustees. Information pertaining to the
Trustees and Executive Officers of the Company is set forth below.

POSITION PRINCIPAL OCCUPATION(S)
NAME AGE WITH COMPANY FOR PAST FIVE YEARS

Stuart D. Bilton* 54 Chairman, Board of Mr. Bilton is Chief Executive Officer of The Chicago
171 North Clark Street Trustees (Chief Trust Company and President of Alleghany Asset
Chicago, IL 60601 Executive Officer) Management, Inc. Previously, Mr. Bilton was an
Executive Vice President of Chicago Title and Trust
Company. He is a Director of Alleghany Asset
Management Inc., Montag & Caldwell, Inc., Veredus Asset
Management Inc., Baldwin & Lyons, Inc. and the Boys and
Girls Clubs of Chicago.

Leonard F. Amari 58 Trustee Mr. Amari is a Partner at the law offices of Amari &
734 North Wells Street Locallo, a practice confined exclusively to the real
Chicago, IL 60610 estate tax assessment process.

Dorothea C. Gilliam* 47 Trustee Ms. Gilliam is Vice President of Investments of the
171 North Clark Street Alleghany Corporation, the parent company of Alleghany
Chicago, IL 60601 Asset Management, Inc. Previously, she was an
Assistant Vice President of Chicago Title and Trust
Company and a former Trustee of the Company. She is a
chartered Financial Analyst and a member of AIMR. She
is a Director of Armco Inc.

Robert A. Kushner 65 Trustee Mr. Kushner was a Vice President, Secretary and General
30 Vernon Drive Counsel at Cyclops Industries, Inc. until his
Pittsburgh, PA 15228 retirement in April 1992. He is currently a Vice
President, Board
Member and
Chairman of
Investment
Committee and
Co-Chairman of
Strategic Planning
Committee of
Pittsburgh Dance
Council.

Gregory T. Mutz 55 Trustee Mr. Mutz is President and CEO of The UICI Companies and
125 South Wacker Drive, Chairman of the Board of Excell Global Services. He is
Suite 3100 Chairman of the Board of AMLI Residential Properties
Chicago, IL 60606 Trust (a NYSE Multifamily REIT) and Chairman of the
Board of AMLI
Commercial
Properties Trust,
LP, both successor
companies to AMLI
Realty Co., which
he co-founded in
1980.

Robert B. Scherer 59 Trustee Mr. Scherer is President of The Rockridge Group, Ltd.,
10010 Country Club Road which provides consulting services to the title
Woodstock, IL 60098 insurance industry. Previously, he was a Senior Vice
President -
Strategy and
Development at
Chicago Title and
Trust Company
prior to October
1994.

<PAGE>

Nathan Shapiro 64 Trustee Mr. Shapiro is the President of SF Investments, Inc., a
1700 Ridge broker/dealer and investment banking firm. He is
Highland Park, IL 60035 President of New Horizons Corporation, a consulting
firm, and Senior
Vice President of
Pekin, Singer and
Shapiro, an
investment
advisory firm. He
is a Director of
Baldwin & Lyons,
Inc.

Denis Springer 54 Trustee Mr. Springer is a former Senior Vice President and
1673 Balmoral Lane Chief Financial Officer of Burlington Northern Santa Fe
Inverness, IL 60067 Corporation.

<PAGE>

POSITION PRINCIPAL OCCUPATION(S)
NAME AGE WITH COMPANY FOR PAST FIVE YEARS
Kenneth C. Anderson 36 President Mr. Anderson is President of Alleghany Investment
171 North Clark Street (Chief Operating Services, Inc. and a Senior Vice President of The
Chicago, IL 60601 Officer) Chicago Trust Company and has been an officer of the
Company since
1993. He is
responsible for
all business
activities
regarding mutual
funds. Mr.
Anderson is a
Certified Public
Accountant.
Gerald F. Dillenburg 33 Vice President, Mr. Dillenburg is a Vice President of The Chicago Trust
171 North Clark Street Secretary and Company and has been the operations manager and
Chicago, IL 60601 Treasurer compliance officer of all mutual funds since 1996.
(Chief Financial Previously, he was an audit manager with KPMG LLP,
Officer specializing in investment services, including mutual
and Compliance and trust funds, broker/dealers and investment
Officer) Advisers. Mr. Dillenburg is a Certified Public
Accountant.

Debra Reams 37 Vice President Ms. Reams is a Vice President of Montag & Caldwell,
1100 Atlanta Financial Inc., since 1996. Previously, she was a Portfolio
Center Manager and Chief Investment Officer at Randy Seckman &
3343 Peachtree Road, NE Associates, Inc., a financial advisory firm providing
Atlanta, GA 30326-8151 asset management primarily to individual and small
businesses. She is a Chartered Financial Analyst.
</TABLE>

* These Trustees are considered "interested persons" of the Funds as defined
under the 1940 Act.

The Trustees of the Company who are not "interested persons" of the
Funds receive fees and are reimbursed for out-of-pocket expenses for each
meeting of the Board of Trustees they attend. Effective January 1, 2000, the
Trustees receive $3,500 for each Board Meeting attended and an annual retainer
of $3,500. No officer or employee of The Chicago Trust Company ("Chicago Trust")
or its affiliates receives any compensation from the Funds for acting as a
Trustee of the Company. The officers of the Company receive no compensation
directly from the Funds for performing the duties of their offices.
The table below shows the total fees which were paid to each of the
Trustees who are not "interested persons" during the fiscal year ended October
31, 2000.

Trustee Aggregate Fees Paid
by the Company

Leonard F. Amari $ 20,375
Robert A. Kushner $ 20,375
Gregory T. Mutz $ 10,375
Robert B. Scherer $ 30,375
Nathan Shapiro $ 20,375
Denis Springer $ 16,875

As of November 30, 2000, the Trustees and officers of the Company as a
group owned less than 1% of the outstanding shares of any class of each Fund,
except for Stuart D. Bilton, who owned 6.23% of Alleghany/Chicago Trust
Municipal Bond Fund.

The Company, its investment advisers and principal underwriter have
adopted a code of ethics (the "Code of Ethics") under Rule 17j-1 of the 1940
Act. The Code of Ethics permits personnel, subject to the Code of Ethics and its
restrictive provisions, to invest in securities, including securities that may
be purchased or held by the Corporation.

PRINCIPAL HOLDERS OF SECURITIES

Listed below are the names and addresses of those shareholders who, as
of December 1, 2000, owned of record or beneficially of 5% or more of the shares
of the Funds. The shares held in the nominee names of Marshall & Ilsley Trust
Co. are owned of record by Chicago Trust. ____________ is the owner of Alleghany
Asset Management, Inc. ("AAM"), which is the holding company of Chicago Trust
and Montag & Caldwell, Inc. ("Montag & Caldwell") and currently holds a 40%
interest in Veredus Asset Management LLC ("Veredus"). Blairlogie Capital
Management ("Blairlogie") is an indirect subsidiary of _________. TAMRO Capital
Partners LLC ("TAMRO") is a subsidiary of ___. Chicago Trust, Montag & Caldwell,
Veredus, Blairlogie and TAMRO are Investment Advisers for the Funds.
Shareholders who have the power to vote a large percentage of shares of a
particular Fund can control the Fund and determine the outcome of a shareholder
meeting.
<TABLE>
<CAPTION>

ALLEGHANY/MONTAG & CALDWELL GROWTH FUND - Class N
<S> <C> <C>

Shareholder Address Percentage Owned

Charles Schwab & Co., Inc. Special Custody Account for Customers 25.69%
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA 94104

..................................... ...................................... ......................................
..................................... ...................................... ......................................
Stetson & Co. c/o M&I Trust Co. 18.63%
P.O. Box 2977
Milwaukee, WI 53201
..................................... ...................................... ......................................

MONTAG & CALDWELL GROWTH FUND - Class I

..................................... ...................................... ......................................
Shareholder Address Percentage Owned
..................................... ...................................... ......................................
..................................... ...................................... ......................................

Miter & Co. c/o M&I Trust Co./Outsourcing 6.44%
P.O. Box 2977
Milwaukee, WI 53201-2977

Bancorp South Bank c/o Trust 5.22%
P.O. Box 1604
Jackson, MS 39215-1605
..................................... ...................................... ......................................

ALLEGHANY/CHICAGO TRUST GROWTH & INCOME FUND - Class N

Stetson & Co. c/o M&I Trust Co. 42.81%
P.O. Box 2977
Milwaukee, WI 53201

..................................... ...................................... ......................................
Miter & Co. c/o M&I Trust Co./Outsourcing 29.23%
P.O. Box 2977
Milwaukee, WI 53201-2977

..................................... ...................................... ......................................
..................................... ...................................... ......................................
Charles Schwab & Co., Inc. Special Custody Account for Customers 9.01%
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA 94104-4122
..................................... ...................................... ......................................

ALLEGHANY/CHICAGO TRUST GROWTH & INCOME FUND - Class I

Stetson & Co. c/o MI Trust Co. 80.62%
P.O. Box 2966
Milwaukee, WI 53201
..................................... ...................................... ......................................

..................................... ...................................... ......................................
Davis & Company c/o Marshall & Ilsley Trust Co. 14.51%
c/o M&I Trust Co./Outsourcing
P.O. Box 2977
Milwaukee, WI 53201-2977
..................................... ...................................... ......................................

ALLEGHANY/TAMRO LARGE CAP VALUE FUND

Alleghany Capital Corporation 375 Park Avenue, Suite 3201 100.00%
New York, NY 10152

..................................... ...................................... ......................................

<PAGE>

ALLEGHANY/CHICAGO TRUST TALON FUND

..................................... ...................................... ......................................
National Investors Services Corp FBO Customers 15.98%
55 Water Street, 32nd Floor
New York, NY 10041-3299

..................................... ...................................... ......................................
Stetson & Co. c/o M&I Trust Co. 8.35%
Attn: Outsourcing
P.O. Box 2966
Milwaukee, WI 53201

..................................... ...................................... ......................................

ALLEGHANY/CHICAGO TRUST SMALL CAP VALUE FUND

Miter & Co. c/o M&I Trust Co./Outsourcing 62.18%
P.O. Box 2977
Milwaukee, WI 53201-2977

..................................... ...................................... ......................................
..................................... ...................................... ......................................
Charles Schwab & Co., Inc. Special Custody Account for Customers 9.36%
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA 94104-4122

..................................... ...................................... ......................................
..................................... ...................................... ......................................
Davis & Company c/o Marshall & Ilsley Trust Co. 7.94%
c/o M&I Trust Co./Outsourcing
P.O. Box 2977
Milwaukee, WI 53201-2977
..................................... ...................................... ......................................

ALLEGHANY/VEREDUS AGGRESSIVE GROWTH FUND

Charles Schwab & Co., Inc. Special Custody Account for Customers 19.07%
Attn: Mutual Funds
101 Montgomery Street
San Francisco, CA 94104-4122

..................................... ...................................... ......................................
Stetson & Co. c/o M&I Trust Co. 17.78%
P.O. Box 2977
Milwaukee, WI 53201

..................................... ...................................... ......................................
Miter & Co. c/o M&I Trust Co./Outsourcing 9.61%
P.O. Box 2977
Milwaukee, WI 53201-2977

..................................... ...................................... ......................................
..................................... ...................................... ......................................
Davis & Company c/o Marshall & Ilsley Trust Co. 5.75%
c/o M&I Trust Co./Outsourcing
P.O. Box 2977
Milwaukee, WI 53201-2977
..................................... ...................................... ......................................

ALLEGHANY/TAMRO SMALL CAP FUND

Alleghany Capital Corporation 375 Park Avenue, Suite 3201 100.00%
New York, NY 10152

..................................... ...................................... ......................................

<PAGE>

ALLEGHANY/VEREDUS SCITECH FUND

Alleghany Capital Corporation 375 Park Avenue, Suite 3201 68.99%
New York, NY 10152

..................................... ...................................... ......................................

ALLEGHANY/BLAIRLOGIE INTERNATIONAL DEVELOPED FUND - Class N

Miter & Co. c/o M&I Trust Co./Outsourcing 39.69%
P.O. Box 2977
Milwaukee, WI 53201-2977

..................................... ...................................... ......................................
Stetson & Co. c/o M&I Trust Co. 11.65%
P.O. Box 2977
Milwaukee, WI 53201

..................................... ...................................... ......................................
..................................... ...................................... ......................................
Davis & Company c/o Marshall & Ilsley Trust Co. 6.00%
c/o M&I Trust Co./Outsourcing
P.O. Box 2977
Milwaukee, WI 53201-2977
..................................... ...................................... ......................................

ALLEGHANY/BLAIRLOGIE INTERNATIONAL DEVELOPED FUND - Class I

Pacific Mutual Life Insurance Co. Employees Retirement Plan Trust 48.93%
700 Newport Center Drive
Newport Beach, CA 92660-6307

..................................... ...................................... ......................................
..................................... ...................................... ......................................
CMTA-CMPP - Allied Workers Pension c/o Associated Third Party 6.53%
Trust Administrator
1640 S. Loop Rd.
Alameda, CA 94502

..................................... ...................................... ......................................

ALLEGHANY/BLAIRLOGIE EMERGING MARKETS FUND - Class N

Miter & Co. c/o M&I Trust Co./Outsourcing 50.26%
P.O. Box 2977
Milwaukee, WI 53201-2977

..................................... ...................................... ......................................
..................................... ...................................... ......................................
Davis & Company c/o Marshall & Ilsley Trust Co. 16.71%
c/o M&I Trust Co./Outsourcing
P.O. Box 2977
Milwaukee, WI 53201-2977
..................................... ...................................... ......................................

<PAGE>

ALLEGHANY/BLAIRLOGIE EMERGING MARKETS FUND - Class I

..................................... ...................................... ......................................
Pacific Mutual Life Insurance Co. Employees Retirement Plan Trust 33.43%
700 Newport Center Drive
Newport Beach, CA 92660-6307

..................................... ...................................... ......................................
Charles Schwab & Co., Inc. Attn: Mutual Funds Dept. 31.68%
101 Montgomery Street
San Francisco, CA 94104-4122

..................................... ...................................... ......................................
..................................... ...................................... ......................................
CMTA-CMPP - Allied Workers Pension c/o Associated Third Party 5.28%
Trust Administrator
1640 S. Loop Rd.
Alameda, CA 94502

..................................... ...................................... ......................................

ALLEGHANY/MONTAG & CALDWELL BALANCED FUND - Class N

..................................... ...................................... ......................................
Stetson & Co. c/o M&I Trust Co. 59.19%
P.O. Box 2977
Milwaukee, WI 53201

..................................... ...................................... ......................................

MONTAG & CALDWELL BALANCED FUND - Class I

..................................... ...................................... ......................................
Wells Fargo Bank FBP Pacificare Health Systems 401(k) 30.15%
Plan
P.O. Box 1533
Minneapolis, MN 55480

..................................... ...................................... ......................................
Wilmington Trust Company FBO PricewaterhouseCoopers 15.21%
c/o Mutual Funds
P.O. Box 8972
Wilmington, DE 19899

..................................... ...................................... ......................................
..................................... ...................................... ......................................
American Express Trust Company FBO American Express Trust 6.98%
Retirement Services Plans
P.O. Box 534
Minneapolis, MN 55440-0534

..................................... ...................................... ......................................
..................................... ...................................... ......................................
BNY Western Trust Company CUST Columbia River Logscalers Pension 5.99%
Two Union Square, Suite 520
601 Union Street
Seattle, WA 98101-2341

Branch Banking - Trust Co. SE Regional - Montag & Caldwell 5.94%
P.O. Box 2887
Wilson, NC 27894-2887

..................................... ...................................... ......................................

<PAGE>

ALLEGHANY/CHICAGO TRUST BALANCED FUND

..................................... ...................................... ......................................
Stetson & Co. c/o M&I Trust Co. 57.27%
P.O. Box 2977
Milwaukee, WI 53201

..................................... ...................................... ......................................
Miter & Co. c/o M&I Trust Co./Outsourcing 32.11%
P.O. Box 2977
Milwaukee, WI 53201-2977
..................................... ...................................... ......................................

ALLEGHANY/CHICAGO TRUST BOND FUND - Class N

..................................... ...................................... ......................................
Stetson & Co. c/o M&I Trust Co. 47.78%
P.O. Box 2966
Milwaukee, WI 53201

..................................... ...................................... ......................................
Miter & Co. c/o M&I Trust Co./Outsourcing 24.48%
P.O. Box 2977
Milwaukee, WI 53201-2977

..................................... ...................................... ......................................

ALLEGHANY/CHICAGO TRUST BOND FUND - Class I

Miter & Co. c/o M&I Trust Co./Outsourcing 46.02%
P.O. Box 2977
Milwaukee, WI 53201-2977

..................................... ...................................... ......................................
Stetson & Co. c/o MI Trust Co. 12.03%
P.O. Box 2966
Milwaukee, WI 53201
..................................... ...................................... ......................................

ALLEGHANY/CHICAGO TRUST MUNICIPAL BOND FUND

..................................... ...................................... ......................................
..................................... ...................................... ......................................
Stuart D. Bilton and Bette E. Bilton Joint Tenancy 6.23%
72 Brinker Road
Barrington, IL 60010-5135
..................................... ...................................... ......................................

ALLEGHANY/CHICAGO TRUST MONEY MARKET FUND

..................................... ...................................... ......................................
Davis & Company c/o Marshall & Ilsley Trust Co. 86.48%
c/o M&I Trust Co./Outsourcing
P.O. Box 2977
Milwaukee, WI 53201-2977
..................................... ...................................... ......................................

</TABLE>

<PAGE>

INVESTMENT ADVISORY AND OTHER SERVICES

Investment Advisory Agreements

The advisory services provided by the Investment Adviser of each Fund
and the fees received by it for such services are described in the Prospectus.

The Investment Adviser for Alleghany/Chicago Trust Talon Fund,
Alleghany/Chicago Trust Small Cap Value Fund, Alleghany/Chicago Trust Bond Fund
- Class N and Alleghany/Chicago Trust Bond Fund - Class I has entered into
Expense Limitation Agreements with the Company, effective January 1, 2001
whereby it has agreed to reimburse the Funds to the extent necessary to maintain
total annual operating expenses at 1.30%, 1.40%, 0.74% and 0.49% of net assets,
respectively.

The Investment Advisers for Alleghany/Montag & Caldwell Growth Fund,
Alleghany/Montag & Caldwell Balanced Fund and Alleghany/Chicago Trust Municipal
Bond Fund may from time to time voluntarily waive a portion of their advisory
fees with respect to the Funds and/or reimburse a portion of the Funds'
expenses.

The Investment Adviser for Alleghany/Veredus Aggressive Growth Fund and
Alleghany/Veredus SciTech Fund has entered into Expense Limitation Agreements
with the Company, effective January 1, 2001, respectively, whereby it has agreed
to reimburse the Fund to the extent necessary to maintain total annual operating
expenses at 1.40% and 1.50% of net assets, respectively.

The Investment Adviser for Alleghany/TAMRO Large Cap Value Fund and
Alleghany/TAMRO Small Cap Fund has entered into Expense Limitation Agreements
with the Company, effective November 30, 2000, whereby it has agreed to
reimburse the Fund to the extent necessary to maintain total annual operating
expenses at 1.20% and 1.30% of net assets, respectively.
The investment advisory fees earned and waived by the Investment
Advisers for each Fund, as well as expenses reimbursed, are set forth below.

Fiscal year ended October 31, 2000
<S> <C> <C> <C>
Gross Advisory Fees Waived Fees and Net Advisory Fees
Fund Earned by Advisers Reimbursed Expenses After Fee Waivers

Alleghany/Montag & Caldwell Growth Fund $ 20,110,532 $ 0 $ 20,110,532
Alleghany/Chicago Trust Growth & Income Fund $ 3,822,871 $ 0 $ 3,822,871
Alleghany/Chicago Trust Talon Fund $ 175,902 $ 39,493 $
136,409
Alleghany/Chicago Trust Small Cap Value Fund $ 464,754 $ 36,464 $
428,290
Alleghany/Veredus Aggressive Growth Fund $ 1,478,512 $ 91,005 $ 1,387,507
Alleghany/Veredus SciTech Fund* $ $ 40,452 $ 0
8,668
Alleghany/Montag & Caldwell Balanced Fund $ 2,441,000 $ 0 $ 2,441,000
Alleghany/Chicago Trust Balanced Fund $ 2,139,983 $ 0 $ 2,139,983
Alleghany/Chicago Trust Bond Fund $ 773,197 $ 267,750 $
505,447
Alleghany/Chicago Trust Municipal Bond Fund $ 100,946 $ 179,242 $ 0
Alleghany/Chicago Trust Money Market Fund $ 1,573,389 $ 0 $ 1,573,389
................................................ ...................... ........................ ....................
* Alleghany/Veredus SciTech Fund commenced operations on June 30, 2000.

Fiscal year ended October 31, 1999
................................................... ..................... ...................... ....................
Gross Advisory Fees Waived Fees and Net Advisory Fees
Fund Earned by Advisers Reimbursed Expenses After Fee Waivers

Alleghany/Montag & Caldwell Growth Fund $ 16,451,953 $ 0 $ 16,451,953
Alleghany/Chicago Trust Growth & Income Fund $ 3,230,163 $ 0 $ 3,230,163
Alleghany/Chicago Trust Talon Fund $ 164,312 $ 40,814 $ 123,498
Alleghany/Chicago Trust Small Cap Value Fund* $ 358,830 $ 52,755 $ 306,075
Alleghany/Veredus Aggressive Growth Fund* $ 312,271 $ 52,934 $ 259,337
Alleghany/Montag & Caldwell Balanced Fund $ 1,585,840 $ 0 $ 1,585,840
Alleghany/Chicago Trust Balanced Fund $ 1,861,258 $ 0 $ 1,861,258
Alleghany/Chicago Trust Bond Fund $ 840,813 $ 199,795 $ 641,018
Alleghany/Chicago Trust Municipal Bond Fund $ 95,352 $ 174,679 $ 0
Alleghany/Chicago Trust Money Market Fund $ 1,215,190 $ 0 $ 1,215,190
................................................... ..................... ...................... ....................

* Alleghany/Chicago Trust Small Cap Value Fund commenced operations on
November 10, 1998. Alleghany/Veredus Aggressive Growth Fund commenced
operations on June 30, 1998.

<PAGE>

Fiscal year ended October 31, 1998
.................................................. ...................... ...................... ....................
Gross Advisory Fees Waived Fees and Net Advisory Fees
Fund Earned by Advisers Reimbursed Expenses After Fee Waivers

Alleghany/Montag & Caldwell Growth Fund $ 9,438,160 $ 0 $ 9,438,160
Alleghany/Chicago Trust Growth & Income Fund $ 2,312,832 $ 0 $ 2,312,832
Alleghany/Chicago Trust Talon Fund $ 224,933 $ 43,706 $ 181,227
Alleghany/Montag & Caldwell Balanced Fund $ 971,351 $ 0 $ 971,351
Alleghany/Chicago Trust Balanced Fund $ 1,453,465 $ 0 $ 1,453,465
Alleghany/Chicago Trust Bond Fund $ 740,845 $ 217,546 $ 523,299
Alleghany/Chicago Trust Municipal Bond Fund $ 78,556 $ 138,689 $ 0
Alleghany/Chicago Trust Money Market Fund $ 1,026,684 $ 24,492* $ 1,002,192
.................................................. ...................... ...................... ....................

* As of February 27, 1998, the Investment Adviser of Alleghany/Chicago Trust
Money Market Fund no longer waived fees or reimbursed expenses.
</TABLE>

The Investment Adviser for Alleghany/Blairlogie International Developed
Fund and Alleghany/Blairlogie Emerging Markets Fund has entered into Expense
Limitation Agreements with the Company, effective January 1, 2001, whereby it
has agreed to reimburse the Funds to the extent necessary to maintain total
annual operating expenses at 1.35% and 1.60% of net assets for Class N shares,
respectively, and 1.10% and 1.35% of net assets for Class I shares,
respectively.

Fiscal year ended October 31, 2000
<S> <C> <C> <C>
................................................... ..................... ....................... ...................
Gross Advisory Fees Waived Fees and Net Advisory Fees
Fund Earned by Advisers Reimbursed Expenses After Fee Waivers

Alleghany/Blairlogie International Developed $ 654,332 $ 61,420 $ 592,912
Fund***
Alleghany/Blairlogie Emerging Markets Fund*** $ 157,847 $ 69,709 $ 88,138
................................................... ..................... ....................... ...................

Six Months Ended October 31, 1999
................................................... ..................... ....................... ...................
Gross Advisory Fees Waived Fees and Net Advisory Fees
Fund Earned by Advisers Reimbursed Expenses After Fee Waivers

Alleghany/Blairlogie International Developed $ 439,792 $ 29,647 $ 410,145
Fund***
Alleghany/Blairlogie Emerging Markets Fund*** $ 78,010 $ 43,536 $ 34,474
................................................... ..................... ....................... ...................

Ten Months Ended April 30, 1999
................................................... ..................... ....................... ...................
Gross Advisory Fees Waived Fees and Net Advisory Fees
Fund Earned by Advisers Reimbursed Expenses After Fee Waivers

Alleghany/Blairlogie International Developed $ 611,052 $ 0 $ 611,052
Fund***
Alleghany/Blairlogie Emerging Markets Fund*** $ 151,716 $ 0 $ 151,716
................................................... ..................... ....................... ...................

Year Ended June 30, 1998
................................................... ..................... ....................... ...................
Gross Advisory Fees Waived Fees and Net Advisory Fees
Fund Earned by Advisers Reimbursed Expenses After Fee Waivers

Alleghany/Blairlogie International Developed $ 653,050 $ 0 $ 653,050
Fund***
Alleghany/Blairlogie Emerging Markets Fund*** $ 349,026 $ 0 $ 349,026
................................................... ..................... ....................... ...................
</TABLE>

*** Blairlogie International Developed Fund and Blairlogie Emerging Markets
Fund commenced operations on June 8, 1993 and June 1, 1993, respectively,
as separate portfolios of PIMCO Funds. These Funds were reorganized as new
portfolios of Alleghany Funds on April 30, 1999.

Under the Investment Advisory Agreements, the Investment Adviser of
each Fund is not liable for any error of judgment or mistake of law or for any
loss suffered by the Company or a Fund in connection with the performance of the
Agreement, except a loss resulting from willful misfeasance, bad faith or gross
negligence on its part in the performance of its duties or from reckless
disregard of its duties and obligations thereunder.

Each Investment Advisory Agreement is terminable with respect to a Fund
by vote of the Board of Trustees or by the holders of a majority of the
outstanding voting securities of the Fund, at any time without penalty, on 60
days' written notice to the Investment Adviser. An Investment Adviser may also
terminate its advisory relationship with respect to a Fund on 60 days' written
notice to the Company. Each Investment Advisory Agreement terminates
automatically in the event of its assignment.

Under each Investment Advisory Agreement, the Fund pays the following
expenses: (1) the fees and expenses of the Company's disinterested directors,
(2) the salaries and expenses of any of the Company's officers or employees who
are not affiliated with the Investment Adviser, (3) interest expenses, (4) taxes
and governmental fees, (5) brokerage commissions and other expenses incurred in
acquiring or disposing of portfolio securities, (6) the expenses of registering
and qualifying shares for sale with the SEC and with various state securities
commissions, (7) accounting and legal costs, (8) insurance premiums, (9) fees
and expenses of the Company's Custodian, Administrator, Sub-Administrator and
Transfer Agent and any related services, (10) expenses of obtaining quotations
of the Funds' portfolio securities and of pricing the Funds' shares, (11)
expenses of maintaining the Company's legal existence and of shareholders'
meetings, (12) expenses of preparation and distribution to existing shareholders
of reports, proxies and prospectuses and (13) fees and expenses of membership in
industry organizations.
Prior to February 1, 2001, Alleghany Corporation was the parent company
of Alleghany Asset Management, Inc., which is the parent company of the Trust's
Advisers.

On October 18, 2000 ABN AMRO Bank N.V. and Alleghany Corporation
announced that they had entered into a definitive agreement providing for the
merger of Alleghany Asset Management, Inc. with a subsidiary of ABN AMRO North
America Holding, Inc. Alleghany Asset Management, Inc. is the parent company to
the Trust's Advisers - The Chicago Trust Company, Montag & Caldwell, Inc.,
Blairlogie Capital Management, Veredus Asset Management LLC and TAMRO Capital
Partners LLC and to Chicago Capital Management, Inc., a Subadviser to certain of
the Funds. Alleghany Asset Management is also the parent of the Trust's
Administrator, Alleghany Investment Services Inc.

On or about February 1, 2001, Alleghany Asset Management, Inc. was
merged with _________, a subsidiary of ABN AMRO North America Holding, Inc. The
transaction, which constituted an assignment of the Funds' investment advisory
agreements and sub-investment advisory agreements, which were approved by the
Board of Trustees on November 21, 2000. The shareholders of the Trust approved
the transaction at a meetin gof shareholders held on January 17, 2001.

The Administrator and Sub-Administrator

As Administrator, Alleghany Investment Services, Inc. ("AIS"), 171
North Clark Street, Chicago, Illinois 60601, provides certain administrative
services to the Company pursuant to an Administration Agreement. PFPC Inc., 4400
Computer Drive, Westborough, MA 01581, provides certain administrative services
for the Funds and AIS pursuant to a Sub-Administration and Accounting Services
Agreement.

Under the Administration Agreement, the Administrator is responsible
for: (1) coordinating with the Custodian and Transfer Agent and monitoring the
services they provide to the Funds, (2) coordinating with and monitoring any
other third parties furnishing services to the Funds, (3) providing the Funds
with necessary office space, telephones and other communications facilities and
personnel competent to perform administrative and clerical functions, (4)
supervising the maintenance by third parties of such books and records of the
Funds as may be required by applicable Federal or state law, (5) preparing or
supervising the preparation by third parties of all Federal, state and local tax
returns and reports of the Funds required by applicable law, (6) preparing and,
after approval by the Funds, filing and arranging for the distribution of proxy
materials and periodic reports to shareholders of the Funds as required by
applicable law, (7) preparing and, after approval by the Company, arranging for
the filing of such registration statements and other documents with the SEC and
other Federal and state regulatory authorities as may be required by applicable
law, (8) reviewing and submitting to the Officers of the Company for their
approval invoices or other requests for payment of the Funds' expenses and
instructing the Custodian to issue checks in payment thereof and (9) taking such
other action with respect to the Company or the Funds as may be necessary in the
opinion of the Administrator to perform its duties under the Agreement.

As compensation for services performed under the Administration
Agreement, the Administrator receives an administration fee payable monthly at
the annual rate set forth below as a percentage of the average daily net assets
of the Company. The Administrator also receives custody liaison fees as set
forth in the table below.

Administration Fees

Percentage Average Daily Net Assets (Aggregate)

0.06% Up to $2 billion
0.05% At least $2 billion but not more than $7 billion
0.045% Over $7 billion

<PAGE>

Custody Liaison Fees

Fee Average Daily Net Assets (Each Fund)

$10,000 Up to $100 million
$15,000 At least $100 million but not more than $500 million

$20,000 Over $500 million

The following are the total fees paid to the Administrator for the
three most recent fiscal years:

<TABLE>
<CAPTION>
.............................................. ......................................................................
Administrative Fees
<S> <C> <C> <C>

Fund FYE October 31, 2000 FYE October 31, 1999 FYE October 31, 1998
---- -------------------- -------------------- --------------------

Alleghany/Montag & Caldwell Growth Fund $ 1,672,936 $1,357,663 $ 741,210
Alleghany/Chicago Trust Growth & Income Fund $ 297,648 $ 254,852 $ 191,695
Alleghany/Chicago Trust Talon Fund $ 13,738 $ 13,011 $ 18,106
Alleghany/Chicago Trust Small Cap Value Fund* $ 27,513 $ 22,122 n/a
Alleghany/Veredus Aggressive Growth Fund* $ 82,947 $ 18,568 n/a
Alleghany/Veredus SciTech Fund $ 860 n/a n/a
Alleghany/Montag & Caldwell Balanced Fund $ 183,095 $ 122,384 $ 80,312
Alleghany/Chicago Trust Balanced Fund $ 178,014 $ 157,773 $ 131,063
Alleghany/Chicago Trust Bond Fund $ 85,456 $ 93,681 $ 87,388
Alleghany/Chicago Trust Municipal Bond Fund $ 15,895 $ 15,839 $ 12,164
Alleghany/Chicago Trust Money Market Fund $ 213,556 $ 167,945 $ 148,930
.............................................. ....................... ...................... .......................

* Alleghany/Chicago Trust Small Cap Value Fund commenced operations on November
10, 1998. Alleghany/Veredus Aggressive Growth Fund commenced operations on
June 30, 1998. Alleghany/Veredus SciTech Fund commenced operations on June
30, 2000.
</TABLE>
<TABLE>
<CAPTION>

................................................ ................. .................................. ...............
Administrative Fees
<S> <C> <C> <C> <C>

Six Months Ended Ten Months
Fund** Year Ended October 31, 1999 Ended Year Ended
---- ----------------
October 31, 2000 April 30, 1999 June 30, 1998
---------------- -------------- -------------

Alleghany/Blairlogie International Developed $ 70,445 $ 40,755 $522,631 $ 555,314
Fund
Alleghany/Blairlogie Emerging Markets Fund $ 36,774 $ 17,137 $ 91,107 $ 208,654
................................................ ................. .................. ............... ...............
</TABLE>

** Blairlogie International Developed Fund and Blairlogie Emerging Markets Fund
commenced operations on June 8, 1993 and June 1, 1993, respectively, as
separate portfolios of PIMCO Funds. These Funds were reorganized as new
portfolios of Alleghany Funds on April 30, 1999.

On December 1, 1999, PFPC Trust Company, a wholly-owned subsidiary of
PFPC Worldwide Inc. and an indirect wholly-owned subsidiary of PNC Bank Corp.,
acquired all of the outstanding shares of First Data Investor Services Group,
Inc., the Funds' sub-administrator and transfer agent. As a result, First Data
Investor Services Group, Inc. changed its name to PFPC Inc. and continues to be
located at 4400 Computer Drive, Westborough, Massachusetts 01581.

Effective December 1, 1999, Provident Distributors, Inc. replaced First
Data Distributors, Inc. as principal underwriter and distributor of the Funds'
shares. Provident Distributors, Inc. is located at 3200 Horizon Drive, King of
Prussia, Pennsylvania 19406.

Distribution Plan

The Board of Trustees of the Company has adopted a Plan of Distribution
(the "Plan") pursuant to Rule 12b-1 under the 1940 Act, which permits the Class
N shares of each Fund, with the exception of Alleghany/Chicago Trust Money
Market Fund, to pay certain expenses associated with the distribution of its
shares. Under the Plan, each Fund may pay actual expenses not exceeding, on an
annual basis, 0.25% of a Fund's average daily net assets. To the Company's
knowledge, no interested person of the Company, nor any of its Trustees who are
not "interested persons," has a direct or indirect financial interest in the
operation of the Plan. The Company anticipates that each Fund will benefit from
additional shareholders and assets as a result of implementation of the Plan.
Amounts spent on behalf of each Fund pursuant to such Plan during the fiscal
year ended October 31, 2000, are set forth below.

<PAGE>

.................................................. ....................................................................
12b-1 Plan Expenses
<S> <C> <C> <C> <C>
Distribution Compensation to Compensation to
Fund Printing Services Broker Dealers Sales Personnel

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/Blairlogie International Developed $ $ $ $
Fund**
Alleghany/Blairlogie Emerging Markets Fund** $ $ $ $
Alleghany/Montag & Caldwell Balanced Fund $ $ $ $
Alleghany/Chicago Trust Balanced Fund $ $ $ $
Alleghany/Chicago Trust Bond Fund $ $ $ $
Alleghany/Chicago Trust Municipal Bond Fund $ $ $ $

Fund Marketing Service Providers Total

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/Blairlogie International Developed $ $ $
Fund**
Alleghany/Blairlogie Emerging Markets Fund** $ $ $
Alleghany/Montag & Caldwell Balanced Fund $ $ $
Alleghany/Chicago Trust Balanced Fund $ $ $
Alleghany/Chicago Trust Bond Fund $ $ $
Alleghany/Chicago Trust Municipal Bond Fund $ $ $
.................................................. ....................... ..................... ......................
</TABLE>

* Alleghany/Chicago Trust Small Cap Value Fund commenced operations on
November 10, 1998. Alleghany/Veredus Aggressive Growth Fund commenced
operations on June 30, 1998.
** Alleghany/Blairlogie Emerging Markets Fund and Alleghany/Blairlogie
International Developed Fund joined Alleghany Funds on April 30, 1999.

PORTFOLIO TRANSACTIONS AND BROKERAGE COMMISSIONS

The Investment Adviser or Sub-Adviser is responsible for decisions to
buy and sell securities for the Funds, for the placement of its portfolio
business and the negotiation of commissions, if any, paid on such transactions.
In placing trades for a Fund, the Investment Adviser or Sub-Adviser will follow
the Company's policy of seeking best execution of orders. Securities traded in
the over-the-counter market are generally traded on a net basis. These
securities are generally traded on a net basis with dealers acting as principal
for their own accounts without a stated commission. In over-the-counter
transactions, orders are placed directly with a principal market-maker unless a
better price and execution can be obtained by using a broker. Brokerage
commissions are paid on transactions in listed securities, futures contracts and
options.

The Company will attempt to obtain the best overall price and most
favorable execution of transactions in portfolio securities. However, subject to
policies established by the Board of Trustees of the Company, a Fund may pay a
broker-dealer a commission for effecting a portfolio transaction for a Fund in
excess of the amount of commission another broker-dealer would have charged if
Chicago Trust, Montag & Caldwell, Veredus, Blairlogie or TAMRO, as appropriate,
determines in good faith that the commission paid was reasonable in relation to
the brokerage or research services provided by such broker-dealer, viewed in
terms of that particular transaction or such firm's overall responsibilities
with respect to the clients, including the Fund, as to which it exercises
investment discretion. In selecting and monitoring broker-dealers and
negotiating commissions, consideration will be given to a broker-dealer's
reliability, the quality of its execution services on a continuing basis and its
financial condition. Subject to the foregoing considerations, preference may be
given in executing portfolio transactions for a Fund to brokers which have sold
shares of that Fund.

The Investment Adviser or Sub-Adviser effects portfolio transactions
for other investment companies and advisory accounts. Research services
furnished by broker-dealers through whom the Funds effect securities
transactions may be used by the Investment Adviser or Sub-Adviser, as the case
may be, in servicing all of their respective accounts; not all such services may
be used in connection with the Funds. The Investment Adviser and Sub-Adviser
will attempt to equitably allocate portfolio transactions among the Funds and
others whenever concurrent decisions are made to purchase or sell securities by
the Funds and other accounts. In making such allocations between the Funds and
others, the main factors to be considered are the respective investment
objectives, the relative size of portfolio holdings of the same or comparable
securities, the availability of cash for investment, the size of investment
commitments generally held and the opinions of the persons responsible for
recommending investments to the Funds and the others. In some cases, this
procedure could have an adverse effect on the Funds. In the opinion of the
Investment Adviser or Sub-Adviser, however, the results of such procedures will,
on the whole, be in the best interest of each of the clients.

Amounts spent on behalf of each Fund for brokerage commissions during
each of the last three fiscal years are set forth below.

<TABLE>
<CAPTION>
Brokerage Commissions
<S> <C> <C> <C>

Fund FYE October 31, 2000 FYE October 31, 1999 FYE October 31, 1998
---- -------------------- -------------------- --------------------

Alleghany/Montag & Caldwell Growth Fund $ 3,003,964 $ 1,716,450 $ 1,379,506
Alleghany/Chicago Trust Growth & Income Fund $ 141,627 $ 256,176 $ 243,509
Alleghany/Chicago Trust Talon Fund $ 112,852 $ 94,685 $ 69,511
Alleghany/Chicago Trust Small Cap Value $ 416,369 $ 285,009 n/a
Fund*
Alleghany/Veredus Aggressive Growth Fund* $ 371,995 $ 52,394 n/a
Alleghany/Veredus SciTech Fund* $ 1,066 n/a n/a
Alleghany/Montag & Caldwell Balanced Fund $ 257,298 $ 103,697 $ 102,195
Alleghany/Chicago Trust Balanced Fund $ 57,711 $ 80,255 $ 86,435

Alleghany/Chicago Trust Bond Fund n/a n/a n/a
Alleghany/Chicago Trust Municipal Bond Fund n/a n/a n/a
Alleghany/Chicago Trust Money Market Fund n/a n/a n/a
</TABLE>

* Alleghany/Chicago Trust Small Cap Value Fund commenced operations on
November 10, 1998. Alleghany/Veredus Aggressive Growth Fund commenced
operations on June 30, 1998. Alleghany/Veredus SciTech Fund commenced
operations on June 30, 2000.

Brokerage Commissions
<S> <C> <C> <C> <C>

Fund** Year Ended Six Months Ten Months Ended Year Ended
------ - -
October 31, 2000 Ended October April 30, 1999 June 30, 1998
---------------- -------------- -------------- -------------
31, 1999
Alleghany/Blairlogie International $ 313,507 $ 206,859 $ 261,870 $ 326,193
Developed Fund
Alleghany/Blairlogie Emerging Markets $ 57,357 $ 62,783 $ 92,726 $ 238,241
Fund
</TABLE>

** Alleghany/Blairlogie International Developed Fund and Alleghany/Blairlogie
Emerging Markets Fund joined Alleghany Funds on April 30, 1999.

Portfolio Turnover

The portfolio turnover rate for each of the Funds is calculated by
dividing the lesser of purchases or sales of portfolio investments for the
reporting period by the monthly average value of the portfolio investments owned
during the reporting period. The calculation excludes all securities, including
options, whose maturities or expiration dates at the time of acquisition are one
year or less. Portfolio turnover may vary greatly from year to year as well as
within a particular year and may be affected by cash requirements for redemption
of units and by requirements which enable the Funds to receive favorable tax
treatment. In any event, portfolio turnover is generally not expected to exceed
100% in the Funds, except for Alleghany/Chicago Trust Small Cap Value Fund,
Alleghany/Veredus Aggressive Growth Fund, Alleghany/TAMRO Small Cap Fund and
Alleghany/Veredus SciTech Fund, in which it is not expected to exceed 200%. A
high rate of portfolio turnover (i.e., over 100%) may result in the realization
of substantial capital gains and involves correspondingly greater transaction
costs. To the extent that net capital gains are realized, distributions derived
from such gains are treated as ordinary income for Federal income tax purposes.

The portfolio turnover rates for the Funds for their most recent fiscal
periods may be found under "FINANCIAL HIGHLIGHTS" in the Prospectus.

NET ASSET VALUE

The net asset value per share of each Fund is computed as of the close
of regular trading on the NYSE on each day the NYSE is open for trading. The
NYSE is closed on New Year's Day, Martin Luther King Jr.'s Birthday, Presidents'
Day, Good Friday, Memorial Day, Independence Day, Labor Day, Thanksgiving Day
and Christmas Day.

The net asset value per share is computed by adding the value of all
securities and other assets in the portfolio, deducting any liabilities
(expenses and fees are accrued daily) and dividing by the number of shares
outstanding. The portfolio securities of each Fund listed or traded on a stock
exchange are valued at the latest sale price. If no sale price is reported, the
mean of the latest bid and asked prices is used. Securities traded
over-the-counter are priced at the mean of the latest bid and asked prices. When
market quotations are not readily available, securities and other assets are
valued at fair value as determined in good faith by the Board of Trustees.

Bonds are valued through prices obtained from a commercial pricing
service or at the mean of the most recent bid and asked prices provided by
investment dealers in accordance with procedures established by the Board of
Trustees. Options, futures and options on futures are valued at the settlement
price as determined by the appropriate clearing corporation.

The securities held in the portfolio of Alleghany/Chicago Trust Money
Market Fund, and the debt securities with maturities of sixty days or less held
by the other Funds, are valued at amortized cost. When a security is valued at
amortized cost, it is valued at its cost when purchased, and thereafter by
assuming a constant amortization to maturity of any premium or accretion of
discount, unless de minimis, regardless of the impact of fluctuating interest
rates on the market value of the instrument.

Quotations of foreign securities denominated in foreign currency are
converted to U.S. dollar equivalents using foreign exchange quotations received
from independent dealers. The calculation of the net asset value of each Fund
may not take place contemporaneously with the determination of the prices of
certain portfolio securities of foreign issuers used in such calculation.
Further, under the Company's procedures, the prices of foreign securities are
determined using information derived from pricing services and other sources.
Information that becomes known to the Company or its agents after the time that
net asset value is calculated on any Business Day may be assessed in determining
net asset value per share after the time of receipt of the information, but will
not be used to retroactively adjust the price of the security so determined
earlier or on a prior day. Events affecting the values of portfolio securities
that occur between the time their prices are determined and the close of regular
trading on the NYSE (normally 4:00 p.m., Eastern time) may not be reflected in
the calculation of net asset value. If events materially affecting the value of
such securities occur during such period, then these securities may be valued at
fair value as determined by the Investment Adviser and approved in good faith by
the Board of Trustees.

DIVIDENDS

Income dividends and capital gain distributions are reinvested
automatically in additional shares at net asset value, unless you elect to
receive them in cash. Distribution options may be changed at any time by
requesting a change in writing. Any check in payment of dividends or other
distributions which cannot be delivered by the Post Office or which remains
uncashed for a period of more than one year may be reinvested in the
shareholder's account at the then current net asset value and the dividend
option may be changed from cash to reinvest. Dividends are reinvested on the
exdividend date (the "ex-date") at the net asset value determined at the close
of business on that date. Please note that shares purchased shortly before the
record date for a dividend or distribution may have the effect of returning
capital, although such dividends and distributions are subject to taxes.

Dividends paid by Montag & Caldwell Growth Fund, Alleghany/Chicago
Trust Growth & Income Fund, Montag & Caldwell Balanced Fund,
Alleghany/Blairlogie Emerging Markets Fund, Alleghany/Blairlogie International
Developed Fund and Alleghany/Chicago Trust Bond Fund with respect to Class I
shares are calculated in the same manner and at the same time. Both Class N and
Class I shares of a Fund will share proportionately in the investment income and
general expenses of the Fund, except that the per share dividends of Class N
shares will differ from the per share dividends of Class I shares as a result of
class-specific expenses.

TAXES

Each Fund intends to qualify or to continue to qualify each year as a
regulated investment company under the Code.

In order to so qualify, a Fund must, among other things, (i) derive at
least 90% of its gross income from dividends, interest, payments with respect to
certain securities loans, gains from the sale of securities or foreign
currencies, or other income (including but not limited to gains from options,
futures or forward contracts) derived with respect to its business of investing
in such stock, securities or currencies; (ii) derive less than 30% of its gross
income from gains from the sale or other disposition of securities or certain
futures and options thereon held for less than three months ("short-short
gains"); (iii) distribute at least 90% of its dividend, interest and certain
other taxable income each year; and (iv) at the end of each fiscal quarter
maintain at least 50% of the value of its total assets in cash, U.S. Government
securities, securities of other regulated investment companies, and other
securities of issuers which represent, with respect to each issuer, no more than
5% of the value of a Fund's total assets and 10% of the outstanding voting
securities of such issuer, and with no more than 25% of its assets invested in
the securities (other than those of the government or other regulated investment
companies) of any one issuer or of two or more issuers which the Fund controls
and which are engaged in the same, similar or related trades and businesses.

To the extent that a Fund qualifies for treatment as a regulated
investment company, it will not be subject to Federal income tax on income paid
to shareholders in the form of dividends or capital gains distributions.

An excise tax at the rate of 4% will be imposed on the excess, if any,
of a Fund's "required distributions" over actual distributions in any calendar
year. Generally, the "required distribution" is 98% of a Fund's ordinary income
for the calendar year plus 98% of its capital gain net income recognized during
the one-year period ending on October 31 plus undistributed amounts from prior
years. The Funds intend to make distributions sufficient to avoid imposition of
the excise tax. For a distribution to qualify as such with respect to a calendar
year under the foregoing rules, it must be declared by a Fund during October,
November or December to shareholders of record during such month and paid by
January 31 of the following year. Such distributions will be taxable in the year
they are declared, rather than the year in which they are received.

When a Fund writes a call or purchases a put option, an amount equal to
the premium received or paid by it is included in the Fund's accounts as an
asset and as an equivalent liability.

In writing a call, the amount of the liability is subsequently
"marked-to-market" to reflect the current market value of the option written.
The current market value of a written option is the last sale price on the
principal exchange on which such option is traded or, in the absence of a sale,
the mean between the last bid and asked prices. If an option which a Fund has
written expires on its stipulated expiration date, the Fund recognizes a
short-term capital gain. If a Fund enters into a closing purchase transaction
with respect to an option which the Fund has written, the Fund realizes a
short-term gain (or loss if the cost of the closing transaction exceeds the
premium received when the option was sold) without regard to any unrealized gain
or loss on the underlying security, and the liability related to such option is
extinguished. If a call option which a Fund has written is exercised, the Fund
realizes a capital gain or loss from the sale of the underlying security and the
proceeds from such sale are increased by the premium originally received.

The premium paid by a Fund for the purchase of a put option is recorded
in the Fund's assets and liabilities as an investment and subsequently adjusted
daily to the current market value of the option. For example, if the current
market value of the option exceeds the premium paid, the excess would be
unrealized appreciation and, conversely, if the premium exceeds the current
market value, such excess would be unrealized depreciation. The current market
value of a purchased option is the last sale price on the principal exchange on
which such option is traded or, in the absence of a sale, the mean between the
last bid and asked prices. If an option which a Fund has purchased expires on
the stipulated expiration date, the Fund realizes a short-term or long-term
capital loss for Federal income tax purposes in the amount of the cost of the
option. If a Fund exercises a put option, it realizes a capital gain or loss
(long-term or short-term, depending on the holding period of the underlying
security) from the sale which will be decreased by the premium originally paid.

The amount of any realized gain or loss on closing out options on
certain stock indices will result in a realized gain or loss for tax purposes.
Such options held by a Fund at the end of each fiscal year on a broad-based
stock index will be required to be "marked-to-market" for Federal income tax
purposes. Sixty percent of any net gain or loss recognized on such deemed sales
or on any actual sales will be treated as long-term capital gain or loss, and
the remainder will be treated as short-term capital gain or loss ("60/40 gain or
loss"). Certain options, futures contracts and options on futures contracts
utilized by the Funds are "Section 1256 contracts." Any gains or losses on
Section 1256 contracts held by a Fund at the end of each taxable year (and on
October 31 of each year for purposes of the 4% excise tax) are
"marked-to-market" with the result that unrealized gains or losses are treated
as though they were realized and the resulting gain or loss is treated as a
60/40 gain or loss.

Shareholders will be subject to Federal income taxes on distributions
made by the Funds whether received in cash or additional shares of the Funds.
Distributions of net investment income and net short-term capital gains, if any,
will be taxable to shareholders as ordinary income. Distributions of net capital
gains (the excess of net capital gains over net short-term capital losses), if
any, will be taxable to shareholders as 28% rate gains or 20% rate gains,
without regard to how long a shareholder has held shares of a Fund. A loss on
the sale of shares held for six months or less will be treated as a long-term
capital loss to the extent of any long-term capital gain dividend paid to the
shareholder with respect to such shares. Dividends paid by a Fund may qualify in
part for the 70% dividends-received deduction for corporations, provided however
that those shares have been held for at least 45 days.

The Funds will notify shareholders each year of the amount of dividends
and distributions, including the amount of any distribution of 28% rate gains
and 20% rate gains and the portion of its dividends which qualify for the 70%
deduction.

<PAGE>

Passive Foreign Investment Companies

Alleghany/Blairlogie International Developed Fund and
Alleghany/Blairlogie Emerging Markets Fund may invest in the stock of foreign
corporations which may be classified under the Code as passive foreign
investment companies ("PFICs"). In general, a foreign corporation is classified
as a PFIC for a taxable year if at least 50% of its assets constitute
investment-type assets or 75% or more of its gross income is investment-type
income. If a Fund receives a so-called "excess distribution" with respect to
PFIC stock, the Fund itself may be subject to tax on a portion of the excess
distribution, whether or not the corresponding income is distributed by the Fund
to stockholders.

In general, under the PFIC rules, an excess distribution is treated as
having been realized ratably over the period during which the Fund held the PFIC
stock. A Fund itself will be subject to a U.S. federal income tax (including
interest) on the portion, if any, of an excess distribution that is so allocated
to prior taxable years. Certain distributions from a PFIC as well as gain from
the sale of PFIC stock are treated as excess distributions. Excess distributions
are characterized as ordinary income even though, absent application of the PFIC
rules, certain excess distributions might have been classified as capital gain.

A Fund may be eligible to elect alternative tax treatment with respect
to PFIC stock. Under an election that currently is available in some
circumstances, a Fund generally would be required to include its share of the
PFIC's income and net capital gain annually, regardless of whether distributions
are received from the PFIC in a given year. If this election were made, the
special rules discussed above relating to the taxation of excess distributions
would not apply. In addition, another election may be available that would
involve marking to market a Fund's PFIC shares at the end of each taxable year
(and on certain other dates prescribed in the Code), with the result that
unrealized gains are treated as though they were realized. If this election were
made, tax at the Fund level under the PFIC rules would generally be eliminated,
but the Fund could, in limited circumstances, incur nondeductible interest
charges. A Fund's intention to qualify annually as a regulated investment
company may limit its elections with respect to PFIC shares.

Because the application of the PFIC rules may affect, among other
things, the character of gains and the amount of gain or loss and the timing of
the recognition of income with respect to PFIC shares, and may subject a Fund
itself to tax on certain income from PFIC shares, the amount that must be
distributed to shareholders and will be taxed to shareholders as ordinary income
or long-term capital gain may be increased or decreased substantially as
compared to a fund that did not invest in PFIC shares.

Foreign Currency Transactions

Under the Code, gains or losses attributable to fluctuations in
exchange rates which occur between the time a Fund accrues income or other
receivables or accrues expenses or other liability denominated in a foreign
currency and the time the Fund actually collects such receivable or pays such
liabilities generally are treated as ordinary income or loss. Similarly, on
disposition of debt securities denominated in a foreign currency and on
disposition of certain other instruments, gains or losses attributable to
fluctuations in the value of the foreign currency between the date of
acquisition of the security or contract and the date of disposition also are
treated as ordinary gain or loss. These gains and losses, referred to under the
Code as "section 988" gains or losses, may increase or decrease the amount of a
Fund's investment company taxable income to be distributed to its shareholders
as ordinary income.

Foreign Taxation

Income received by Alleghany/Blairlogie International Developed Fund
and Alleghany/Blairlogie Emerging Markets Fund from sources within foreign
countries may be subject to withholding and other taxes imposed by such
countries. Tax conventions between certain countries and the U.S. may reduce of
eliminate such taxes. In addition, the Investment Adviser intends to manage the
Funds with the intention of minimizing foreign taxation in cases where it is
deemed prudent to do so. If more than 50% of the value of a Fund's total assets
at the close of its taxable year consists of securities of foreign corporations,
such Fund will be eligible to elect to "pass through" to the Fund's shareholders
the amount of eligible foreign income and similar taxes paid by the Fund. If
this election is made, a shareholder generally subject to tax will be required
to include in gross income (in addition to taxable dividends actually received)
his or her pro rata share of foreign taxes in computing his or her taxable
income or to use it as a foreign tax credit against his or her U.S. federal
income tax liability, subject to certain limitations. In particular,
shareholders must hold their shares (without protection from risk of loss) on
the ex-dividend date and for at least 15 more days during the 30-day period
surrounding the ex-dividend date to be eligible to claim a foreign tax credit
with respect to a gain dividend. No deduction for foreign taxes may be claimed
by a shareholder who does not itemize deductions. Each shareholder will be
notified within 60 days after the close of the Fund's taxable year whether the
foreign taxes paid by the Fund will "pass through" for that year.

Generally, a credit for foreign taxes is subject to the limitation that
it may not exceed the shareholder's U.S. tax attributable to his or her total
foreign source taxable income. For this purpose, if the pass-through election is
made, the source of the electing Fund's income will flow through to shareholders
of the Company. With respect to such Funds, gains from the sale of securities
will be treated as derived from U.S. sources and certain currency fluctuation
gains, including fluctuation gains from foreign currency-denominated debt
securities, receivables and payables will be treated as ordinary income derived
from U.S. sources. The limitation on the foreign tax credit is applied
separately to foreign source passive income, and to certain other types of
income. Shareholders may be unable to claim a credit for the full amount of
their proportionate share of the foreign taxes paid by the Fund. The foreign tax
credit can be used to offset only 90% of the revised alternative minimum tax
imposed on corporations and individuals and foreign taxes generally are not
deductible in computing alternative minimum taxable income.

Dividends and distributions also may be subject to state and local
taxes. Shareowners are urged to consult their tax advisers regarding specific
questions as to Federal, state and local taxes.

The foregoing discussion relates solely to U.S. Federal income tax law.
Non-U.S. investors should consult their tax advisers concerning the tax
consequences of ownership of shares of the Funds, including the possibility that
distributions may be subject to a 30% United States withholding tax (or a
reduced rate of withholding provided by treaty).

PERFORMANCE INFORMATION

General

From time to time, the Company may include general comparative
information, such as statistical data regarding inflation, securities indices or
the features or performance of alternative investments, in advertisements, sales
literature and reports to shareholders. The Company may also include
calculations, such as hypothetical compounding examples or tax-free compounding
examples, which describe hypothetical investment results in such communications.
Such performance examples will be based on an express set of assumptions and are
not indicative of the performance of any Fund. In addition, the Company may
include charts comparing various tax-free yields versus taxable yield
equivalents at different income levels.

From time to time, the yield and total return of a Fund may be quoted
in advertisements, shareholder reports or other communications to shareholders.

Total Return Calculations

Total return is defined as the change in value of an investment in a
Fund over a particular period, assuming that all distributions have been
reinvested. Thus, total return reflects not only income earned, but also
variations in share prices at the beginning and end of the period. Average
annual total return is determined by computing the annual compound return over a
stated period of time that would have produced a Fund's cumulative total return
over the same period if the Fund's performance had remained constant throughout.

The Funds that compute their average annual total returns do so by
determining the average annual compounded rates of return during specified
periods that equate the initial amount invested to the ending redeemable value
of such investment. This is done by dividing the ending redeemable value of a
hypothetical $1,000 initial payment by $1,000 and raising the quotient to a
power equal to one divided by the number of years (or fractional portion
thereof) covered by the computation and subtracting one from the result. This
calculation can be expressed as follows:
1
Average Annual Total Return = (ERV) n - 1
---
P

Where: ERV = ending redeemable value at the end of the period covered
by the computation of a hypothetical $1,000 payment made at the
beginning of the period
P = hypothetical initial payment of $1,000
n = period covered by the computation, expressed in terms of years
T = average annual total return

The Funds that compute their aggregate total returns over a specified
period do so by determining the aggregate compounded rate of return during such
specified period that likewise equates over a specified period the initial
amount invested to the ending redeemable value of such investment. The formula
for calculating aggregate total return is as follows:

Aggregate Annual Total Return = ERV - 1
---
P

The calculations of average annual total return and aggregate total
return assume the reinvestment of all dividends and capital gain distributions
on the reinvestment dates during the period. The ending redeemable value
(variable "ERV" in each formula) is determined by assuming complete redemption
of the hypothetical investment and the deduction of all nonrecurring charges at
the end of the period covered by the computations. Such calculations are not
necessarily indicative of future results and do not take into account Federal,
state and local taxes that shareholders must pay on a current basis.

Since performance will fluctuate, performance data for the Funds should
not be used to compare an investment in the Funds' shares with bank deposits,
savings accounts and similar investment alternatives which often provide an
agreed or guaranteed fixed yield for a stated period of time. Shareholders
should remember that performance is generally a function of the kind and quality
of the instruments held in a portfolio, portfolio maturity, operating expenses
and market conditions.
The average annual total returns for the Funds that quote such
performance were as follows for the periods shown:
<TABLE>
<S> <C> <C>
One Year Ended From Fund Inception
Series 10/31/00 through 10/31/00

Alleghany/Montag & Caldwell Growth Fund - Class N (0.96)% 23.02%
Montag & Caldwell Growth Fund - Class I (0.70)% 20.48%
Alleghany/Chicago Trust Growth & Income Fund - Class N 19.62% 22.25%
Alleghany/Chicago Trust Growth & Income Fund - Class I N/A N/A
Alleghany/Chicago Trust Talon Fund 39.07% 17.06%
Alleghany/Chicago Trust Small Cap Value Fund 18.88% 4.60%
Alleghany/Veredus Aggressive Growth Fund 53.35% 49.27%
Alleghany/Blairlogie International Developed Fund - Class N (6.58)% 7.69%
Alleghany/Blairlogie International Developed Fund - Class I (6.28)% 8.17%
Alleghany/Blairlogie Emerging Markets Fund - Class N (8.25)% (7.66)%
Alleghany/Blairlogie Emerging Markets Fund - Class I (8.18)% 1.32%
Alleghany/Montag & Caldwell Balanced Fund- Class N 2.05% 16.88%
Montag & Caldwell Balanced Fund - Class I 2.31% 5.05%
Alleghany/Chicago Trust Balanced Fund 14.82% 17.40%
Alleghany/Chicago Trust Bond Fund - Class N 6.98% 5.96%
Alleghany/Chicago Trust Bond Fund - Class I N/A N/A
Alleghany/Chicago Trust Municipal Bond Fund 7.30% 3.96%

</TABLE>

Yield and Tax-Equivalent Yield

Yield refers to net income generated by an investment over a particular
period of time, which is annualized (assumed to have been generated for one
year) and expressed as an annual percentage rate. Effective yield is yield
assuming that all distributions are reinvested. Effective yield will be slightly
higher than the yield because of the compounding effect of the assumed
investment. Yield for Alleghany/Chicago Trust Money Market Fund over a seven-day
period is called current yield. For Alleghany/Chicago Trust Bond Fund - Class N
and Class I and Alleghany/Chicago Trust Municipal Bond Fund, yield is calculated
by dividing the net investment income per share earned during a 30-day period by
the maximum offering price per share on the last day of the period and
annualizing the result.

Yield of Alleghany/Chicago Trust Money Market Fund

The yield of this Fund for a seven-day period (the "base period") will
be computed by determining the net change in value (calculated as set forth
below) of a hypothetical account having a balance of one share at the beginning
of the period, dividing the net change in account value by the value of the
account at the beginning of the base period to obtain the base period return and
multiplying the base period return by 365/7 with the resulting yield figure
carried to the nearest hundredth of one percent. Net changes in value of a
hypothetical account will include the value of additional shares purchased with
dividends from the original share and dividends declared on both the original
share and any such additional shares, but will not include realized gains or
losses or unrealized appreciation or depreciation on portfolio investments.
Yield may also be calculated on a compound basis (the "effective yield") which
assumes that net income is reinvested in shares of the Fund at the same rate as
net income is earned for the base period.

The yield and effective yield of Alleghany/Chicago Trust Money Market
Fund will vary in response to fluctuations in interest rates and in the expenses
of the Fund. For comparative purposes, the current and effective yields should
be compared to current and effective yields offered by competing financial
institutions for the same base period and calculated by the methods described
above. For the seven-day period ended October 31, 2000, Alleghany/Chicago Trust
Money Market Fund had a yield of 6.14% and an effective yield of 6.33%.

Yields of Alleghany/Chicago Trust Bond Fund - Class N and Class I and
Alleghany/Chicago Trust Municipal Bond Fund

The yield of each of these Funds is calculated by dividing the net
investment income per share (as described below) earned by the Fund during a
30-day (or one month) period by the maximum offering price per share on the last
day of the period and annualizing the result on a semi-annual basis by adding
one to the quotient, raising the sum to the power of six, subtracting one from
the result and then doubling the difference. A Fund's net investment income per
share earned during the period is based on the average daily number of shares
outstanding during the period entitled to receive dividends and includes
dividends and interest earned during the period minus expenses accrued for the
period, net of reimbursements.

This calculation can be expressed as follows:

YIELD = 2 [(a - b + 1) 6 - 1]
cd

Where:a = dividends and interest earned during the period
b = expenses accrued for the period (net of reimbursements)
c = the average daily number of shares outstanding during the period
that were entitled to receive dividends
d = maximum offering price per share on the last day of the period

For the purpose of determining net investment income earned during the
period (variable "a" in the formula), dividend income on equity securities held
by a Fund is recognized by accruing 1/360 of the stated dividend rate of the
security each day that the security is in the Fund. Except as noted below,
interest earned on any debt obligations held by a Fund is calculated by
computing the yield to maturity of each obligation held by that Fund based on
the market value of the obligation (including actual accrued interest) at the
close of business on the last business day of the month, the purchase price
(plus actual accrued interest) and dividing the result by 360 and multiplying
the quotient by the market value of the obligation (including actual accrued
interest) in order to determine the interest income on the obligation for each
day of the subsequent month that the obligation is held by that Fund. For
purposes of this calculation, it is assumed that each month contains 30 days.
The date on which the obligation reasonably may be expected to be called or, if
none, the maturity date. With respect to debt obligations purchased at a
discount or premium, the formula generally calls for amortization of the
discount premium. The amortization schedule will be adjusted monthly to reflect
changes in the market values of such debt obligations.

Expenses accrued for the period (variable "b" in the formula) include
all recurring fees charged by a Fund to all shareholder accounts in proportion
to the length of the base period and the Fund's mean (or median) account size.
Undeclared earned income will be subtracted from the offering price per capital
share (variable "d" in the formula).

Interest earned on tax-exempt obligations that are issued without
original issue discount and have a current market discount is calculated by
using the coupon rate of interest instead of the yield to maturity. In the case
of tax-exempt obligations that are issued with original issue discount but which
have discounts based on current market value that exceed the then-remaining
portion of the original discount (market discount), the yield to maturity is the
imputed rate based on the original issue discount calculation. On the other
hand, in the case of tax-exempt obligations that are issued with original issue
discount but which have discounts based on current market value that are less
than the then-remaining portion of the original discount (market premium), the
yield to maturity is based on the market value.

With respect to mortgage- or other receivables-backed obligations which
are expected to be subject to monthly payments of principal and interest
("pay-downs"): (i) gain or loss attributable to actual monthly pay-downs are
accounted for as an increase or decrease to interest income during the period;
and (ii) each Fund may elect either (a) to amortize the discount and premium on
the remaining security, based on the cost of the security, to the weighted
average maturity date, if such information is available, or to the remaining
term of the security, if any, if the weighted average date is not available or
(b) not to amortize discount or premium on the remaining security.
For the 30-day period ended October 31, 2000, Alleghany/Chicago Trust
Bond Fund - Class N and Class I had a yield of 7.10% and 7.36%, respectively.

For the 30-day period ended October 31, 2000, Alleghany/Chicago Trust
Municipal Bond Fund had a yield of 4.99%.

Tax-Equivalent Yield of Alleghany/Chicago Trust Municipal Bond Fund

The "tax-equivalent yield" of Alleghany/Chicago Trust Municipal Bond
Fund is computed by (a) dividing the portion of the yield (calculated as above)
that is exempt from Federal income tax by one minus a stated Federal income tax
rate and (b) adding to that figure to that portion, if any, of the yield that is
not exempt from Federal income tax.

The tax-equivalent yield of this Fund reflects the taxable yield that
an investor at the stated marginal Federal income tax rate would have to receive
to equal the primarily tax-exempt yield from Alleghany/Chicago Trust Municipal
Bond Fund. Before investing in this Fund, you may want to determine which
investment - tax free or taxable - will result in a higher after-tax yield. To
do this, divided the yield on the tax-free investment by the decimal determined
by subtracting from one the highest Federal tax rate you pay. For example, if
the tax-free yield is 5% and your maximum tax bracket is 36%, the computation
is:

5% Tax-Free Yield / (1.00 - 0.36 Tax Rate) = 5%/0.64 = 7.81% Tax Equivalent
Yield

In this example, your after-tax return would be higher from the 5%
tax-free investment if available taxable yields are below 7.81%. Conversely, the
taxable investment would provide a higher yield when taxable yields exceed
7.81%.

For the 30-day period ended October 31, 2000, Alleghany/Chicago Trust
Municipal Bond Fund had a tax-equivalent yield of 7.80% based on the tax-free
yield of 4.99% shown above, and assuming a shareholder is at the 36% Federal
income tax rate.

OTHER INFORMATION

Statements contained in the Prospectus or in this Statement of
Additional Information as to the contents of any contract or other document
referred to are not necessarily complete. In each instance reference is made to
the copy of such contract or other document filed as an exhibit to the
Registration Statement of which the Prospectus and this Statement of Additional
Information forms a part. Each such statement is qualified in all respects by
such reference.

Description of Shares

Each Fund is authorized to issue an unlimited number of shares of
beneficial interest without par value. Currently, there is only one class of
shares issued by the Funds of the Company, except for Montag & Caldwell Growth
Fund, Alleghany/Chicago Trust Growth & Income Fund, Alleghany/Blairlogie
International Developed Fund, Alleghany/Blairlogie Emerging Markets Fund, Montag
& Caldwell Balanced Fund and Alleghany/Chicago Trust Bond Fund. These Funds
offers two classes of shares: Class N shares and Class I shares. Since each
class has different expenses, i.e., Class I shares do not pay a distribution
plan fee, performance will vary and it is anticipated that the Class N dividends
will be lower than the Class I dividends. Shares of each Fund represent equal
proportionate interests in the assets of that Fund only and have identical
voting, dividend, redemption, liquidation and other rights except that Class I
shares of Montag & Caldwell Growth Fund, Alleghany/Chicago Trust Growth & Income
Fund, Alleghany/Blairlogie International Developed Fund, Alleghany/Blairlogie
Emerging Markets Fund, Montag & Caldwell Balanced Fund and Alleghany/Chicago
Trust Bond Fund have no rights with respect to that Fund's distribution plan.
All shares issued are fully paid and non-assessable, and shareholders have no
preemptive or other right to subscribe to any additional shares and no
conversion rights. Information about Class I shares is available by calling the
Fund at 800 992-8151.

Class I shares of Montag & Caldwell Growth Fund, Alleghany/Chicago
Trust Growth & Income Fund, Alleghany/Blairlogie International Developed Fund,
Alleghany/Blairlogie Emerging Markets Fund, Montag & Caldwell Balanced Fund and
Alleghany/Chicago Trust Bond Fund may be purchased directly from the Funds at
the net asset value next determined after receipt of the order in proper form.
The minimum initial investment is $5 million for Montag & Caldwell Growth Fund
and Alleghany/Chicago Trust Growth & Income Fund, $2 million for
Alleghany/Chicago Trust Bond Fund and $1 million for Montag & Caldwell Balanced
Fund, Alleghany/Blairlogie International Developed Fund and Alleghany/Blairlogie
Emerging Markets Fund. 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 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 Funds may waive the minimum
initial investment by obtaining a letter of intent, evidencing an investor's
intention of meeting the minimum initial investment in a specified period of
time as continually reviewed and approved by the Board. The minimum investment
is waived for Trustees of the Trust and employees of the Investment Adviser 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 Funds. The Funds also reserve the right to
change the initial and subsequent investment minimums.

Voting Rights

Each issued and outstanding full and fractional share of a Fund is
entitled to one full and fractional vote in the Fund. Shares of a Fund
participate equally in regard to dividends, distributions and liquidations with
respect to that Fund subject to preferences (such as Rule 12b-1 distribution
fees), rights or privileges of any share class. Shareholders have equal
non-cumulative voting rights. Class N shares have exclusive voting rights with
respect to the distribution plan. On any matter submitted to a vote of
shareholders, shares of each Fund will vote separately except when a vote of
shareholders in the aggregate is required by law, or when the Trustees have
determined that the matter affects the interests of more than one Fund, in which
case the shareholders of all such Funds shall be entitled to vote thereon.

Shareholder Meetings

The Trustees of the Company do not intend to hold annual meetings of
shareholders of the Funds. The Trustees have undertaken to the SEC, however,
that they will promptly call a meeting for the purpose of voting upon the
question of removal of any Trustee when requested to do so by not less than 10%
of the outstanding shareholders of the Funds. In addition, subject to certain
conditions, shareholders of the Funds may apply to the Company to communicate
with other shareholders to request a shareholders' meeting to vote upon the
removal of a Trustee or Trustees.

Certain Provisions of Trust Instrument

Under Delaware law, the shareholders of the Funds will not be
personally liable for the obligations of any Fund; a shareholder is entitled to
the same limitation of personal liability extended to shareholders of
corporations. To guard against the risk that the Delaware law might not be
applied in other states, the Trust Instrument requires that every written
obligation of the Company or a Fund contain a statement that such obligation may
only be enforced against the assets of the Company or Fund and provides for
indemnification out of Company or Fund property of any shareholder nevertheless
held personally liable for Company or Fund obligations.

Expenses

Expenses attributable to the Company, but not to a particular Fund,
will be allocated to each Fund on the basis of relative net assets. Similarly,
expenses attributable to a particular Fund, but not to a particular class
thereof, will be allocated to each class on the basis of relative net assets.
General Company expenses may include but are not limited to: insurance premiums,
Trustee fees, expenses of maintaining the Company's legal existence and fees of
industry organizations. General Fund expenses may include but are not limited
to: audit fees, brokerage commissions, registration of Fund shares with the SEC,
notification fees to the various state securities commissions, fees of the
Funds' Custodian, Administrator, Sub-Administrator and Transfer Agent or other
"service providers", costs of obtaining quotations of portfolio securities and
pricing of Fund shares.

Class-specific expenses relating to distribution fee payments
associated with a Rule 12b-1 plan for a particular class of shares and any other
costs relating to implementing or amending such plan (including obtaining
shareholder approval of such plan or any amendment thereto) will be borne solely
by shareholders of such class or classes. Other expense allocations which may
differ between classes, or which are determined by the Trustees to be class
specific, may include but are not limited to: printing and postage expenses
related to preparing and distributing required documents such as shareholder
reports, prospectuses and proxy statements to current shareholders of a specific
class, SEC registration fees and state "blue sky" fees incurred by a specific
class, litigation or other legal expenses relating to a specific class, expenses
incurred as a result of issues relating to a specific class and different
transfer agency fees attributable to a specific class.

Notwithstanding the foregoing, the Investment Advisers or other service
providers may waive or reimburse the expenses of a specific class or classes to
the extent permitted under Rule 18f-3 under the 1940 Act.

Custodians

Bankers Trust Company ("Bankers Trust"), 16 Wall Street, New York, New
York 10005 serves as Custodian of the Company's assets, pursuant to a Custodian
Agreement, for the following Funds: Alleghany/Montag & Caldwell Growth Fund,
Alleghany/Chicago Trust Growth & Income Fund, Alleghany/TAMRO Large Cap Value
Fund, Alleghany/Chicago Trust Talon Fund, Alleghany/Chicago Trust Small Cap
Value Fund, Alleghany/Veredus Aggressive Growth Fund, Alleghany/TAMRO Small Cap
Fund, Alleghany/Veredus SciTech Fund, Alleghany/Montag & Caldwell Balanced Fund,
Alleghany/Chicago Trust Balanced Fund, Alleghany/Chicago Trust Bond Fund,
Alleghany/Chicago Trust Municipal Bond Fund and Alleghany/Chicago Trust Money
Market Fund.

State Street Bank and Trust Company ("State Street"), 801 Pennsylvania
Avenue, Kansas City, Missouri 64105 serves as Custodian of the Company's assets,
pursuant to a Custodian Agreement, for Alleghany/Blairlogie Emerging Markets
Fund and Alleghany/Blairlogie International Developed Fund.

Under such Agreements, Bankers Trust and State Street each: (i)
maintains a separate account or accounts in the name of each Fund, (ii) holds
and transfers portfolio securities on account of each Fund, (iii) accepts
receipts and makes disbursements of money on behalf of each Fund, (iv) collects
and receives all income and other payments and distributions on account of each
Fund's securities and (v) makes periodic reports to the Board of Trustees
concerning each Fund's operations.

Transfer Agent and Dividend Paying Agent

PFPC Inc., 4400 Computer Drive, Westborough, Massachusetts 01581 serves
as Transfer Agent and Dividend Paying Agent for the Company.

<PAGE>

Certified Public Accountants

KPMG LLP, 303 E. Wacker Drive, Chicago, Illinois is the Company's
independent certified public accountants.

Reports to Shareholders

Shareholders will receive unaudited semi-annual reports describing the
Funds' investment operations and annual financial statements audited by the
Funds' independent certified public accountants. Inquiries regarding a Fund may
be directed to the Investment Adviser or the Administrator at 800 992-8151.

FINANCIAL STATEMENTS

The Company's Financial Statements for the year ended October 31, 2000,
including the report of KPMG LLP, independent certified public accountants, are
incorporated by reference to the Company's Annual Report as filed with the
Securities and Exchange Commission on December __, 2000. The Company's unaudited
Financial Statements for the period ended April 30, 2000 are incorporated by
reference to the Company's Semi-Annual Report as filed with the Securities and
Exchange Commission on June 27, 2000. The Company's Annual and Semi-Annual
Reports are available upon request and without charge. KPMG LLP provides audit
services, tax return preparation and assistance and consultation in connection
with certain SEC filings.

<PAGE>

A-1
APPENDIX A

Debt Ratings

Moody's Investors Service, Inc. describes classifications of corporate bonds
as follows:

"Aaa" - These bonds are judged to be of the best quality. They carry the
smallest degree of investment risk and are generally referred to as
"gilt-edged." Interest payments are protected by a large or by an
exceptionally stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong
position of such issues.

"AA" - These bonds are judged to be of high quality by all standards.
Together with the "Aaa" group they comprise what are generally known as
highgrade bonds. They are rated lower than the best bonds because
margins of protection may not be as large as in "Aaa" securities or
fluctuation of protective elements may be of greater amplitude or there
may be other elements present which make the long-term risks appear
somewhat larger than in "Aaa" securities.

"A" - These bonds possess many favorable investment attributes and are to
be considered as upper medium-grade obligations. Factors giving
security to principal and interest are considered adequate, but
elements may be present which suggest a susceptibility to impairment
sometime in the future.

"Baa" - These bonds are considered as medium-grade obligations, i.e., they
are neither highly protected nor poorly secured. Interest payments and
principal security appear adequate for the present but certain
protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and in fact have speculative characteristics
as well.

"Ba" - These bonds are judged to have speculative elements; their future
cannot be considered as well assured. Often the protection of interest
and principal payments may be very moderate and thereby not well
safeguarded during both good and bad times over the future. Uncertainty
of position characterizes bonds in this class.

"B" - These bonds generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time
may be small.

"Caa" - These bonds are of poor standing. Such issues may be in default or
there may be present elements of danger with respect to principal or
interest.

"Ca" - These bonds represent obligations which are speculative in a high
degree. Such issues are often in default or have other marked
shortcomings.

"C" - These bonds are the lowest-rated class of bonds and issues so rated
can be regarded as having extremely poor prospects of ever attaining
any real investment standing.

Moody's may modify a rating of "Aa", "A" or "Baa" by adding numerical modifiers
1, 2, 3 to show relative standing within these categories.

<PAGE>

A-2
Standard & Poor's Corporation describes classifications of corporate and
municipal debt as follows:

"AAA" - This is the highest rating assigned by Standard & Poor's to a debt
obligation and indicates an extremely strong capacity to pay interest
and repay principal.

"AA" - These bonds also qualify as high-quality debt obligations. Their
capacity to pay interest and repay principal is very strong and differs
from the "AAA" issues only in small degree.

"A" - These bonds have a strong capacity to pay interest and repay
principal, although they are somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than debt
in higher rated categories.

"BBB" - These bonds are regarded as having an adequate capacity to pay
interest and repay principal. Whereas they normally exhibit adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for bonds in this category than for bonds
in the higher rated categories.

"BB","B", "CCC", "CC", or "C" - These bonds are regarded as having
predominantly speculative characteristics with respect to the issuer's
capacity to pay interest and repay principal. "BB" indicates the lowest
degree of speculation and "C" the highest degree of speculation. While such
bonds will likely have some quality and protective characteristics, these
are outweighed by large uncertainties or major exposures to adverse
conditions. Debt rated "BB" has less near-term vulnerability to default
than other speculative issues. However, it faces major ongoing
uncertainties or exposure to adverse business, financial or economic
conditions which could lead to inadequate capacity to meet timely interest
and principal payments. The "BB" rating category is also used for debt
subordinated to senior debt that is assigned an actual or implied "BBB-"
rating. Debt rated "B" has a greater vulnerability to default but currently
has the capacity to meet interest payments and principal repayments. Debt
rated "CCC" has a currently identifiable vulnerability to default and is
dependent upon favorable business, financial and economic conditions to
meet timely payments of interest and repayment of principal. The rating
"CC" is typically applied to debt subordinated to senior debt which is
assigned an actual or implied "CCC" rating. The rating "C" is typically
applied to debt subordinated to senior debt which is assigned an actual or
implied "CCC-" debt rating.

"CI" - This rating is reserved for income bonds on which no interest is
being paid.

"D" - Debt is in default and payment of interest and/or repayment of
principal is in arrears.

PLUS (+) OR MINUS (-) - The ratings from "AA" through "CCC" may be modified by
the addition of a plus or minus sign to show relative standing within the major
rating categories.

<PAGE>

B-1

<PAGE>

PART C: OTHER INFORMATION

Item 23. Exhibits.

(a) Trust Instrument dated September 10, 1993 is incorporated by reference
to Post-Effective Amendment No. 8 to the Registration Statement as
filed via EDGAR on April 16, 1996.

(b) By-Laws are incorporated by reference to Exhibit No. 2 of
Post-Effective Amendment No. 7 to the
Registration Statement filed via EDGAR on February 22, 1996.

(d) Investment Advisory Agreements for CT&T Growth & Income Fund, CT&T
Intermediate Fixed Income Fund, CT&T Intermediate Municipal Bond Fund
and CT&T Money Market Fund with Chicago Title and Trust Company, each
dated November 30, 1993 are incorporated by reference to Exhibit No.
5(a) of Post-Effective Amendment No. 7 to the Registration Statement as
filed via EDGAR on February 22, 1996.

Investment Advisory Agreements for CT&T Talon Fund with Chicago Title
and Trust Company, and Montag & Caldwell Growth Fund and Montag &
Caldwell Balanced Fund with Montag & Caldwell, Inc., each dated August
27, 1994 are incorporated by reference to Exhibit No. 5(a) of
Post-Effective Amendment No. 7 to the Registration Statement as filed
via EDGAR on February 22, 1996.

Investment Advisory Agreement for CT&T Balanced Fund (formerly known as
"CT&T Asset Allocation Fund") with Chicago Title and Trust Company,
dated March 15, 1995 is incorporated by reference to Exhibit No. 5(a)
of Post-Effective Amendment No. 7 to the Registration Statement as
filed via EDGAR on February 22, 1996.

Amendments to Investment Advisory Agreements for each Series, each
dated December 21, 1995, reflecting name changes of Series and Advisor
are incorporated by reference to Exhibit No. 5(a) of Post-Effective
Amendment No. 7 to the Registration Statement as filed via EDGAR on
February 22, 1996.

Amendments to Investment Advisory Agreements for Montag & Caldwell
Growth Fund and Montag & Caldwell Balanced Fund, each dated December
21, 1995 are incorporated by reference to Exhibit No. 5(a) of
Post-Effective Amendment No. 8 to the Registration Statement as filed
via EDGAR on April 16, 1996.

Investment Advisory Agreement for Alleghany/Chicago Trust Small Cap
Value Fund with Chicago Title and Trust Company dated September 17,
1998 is incorporated by reference to Exhibit (d) of Post-Effective
Amendment No. 15 to the Registration Statement as filed via EDGAR on
March 1, 1999.

Investment Advisory Agreement for Alleghany/Veredus Aggressive Growth
Fund with Veredus Asset Management LLC, dated September 17, 1998 is
incorporated by reference to Exhibit (d) of Post-Effective Amendment
No.
15 to the Registration Statement as filed via EDGAR on March 1, 1999.

Investment Advisory Agreement for Alleghany/Blairlogie Emerging Markets
Fund with Blairlogie Capital Management, dated September 17, 1998 is
incorporated by reference to Exhibit (d) of Post-Effective Amendment
No. 15 to the Registration Statement as filed via EDGAR on March 1,
1999.

Investment Advisory Agreement for Alleghany/Blairlogie International
Developed Fund with Blairlogie Capital Management, dated September 17,
1998 is incorporated by reference to Exhibit (d) of Post-Effective
Amendment No. 15 to the Registration Statement as filed via EDGAR on
March 1, 1999.

Amended and Restated Sub-Investment Advisory Agreement for CT&T Talon Fund with
Talon Asset Management, Inc., dated December 21, 1995 is incorporated by
reference to Exhibit No. 5(b) of Post-Effective Amendment No. 9 to the
Registration Statement as filed via EDGAR on February 27, 1997.

Investment Advisory Assignment dated October 30, 1995, between and
among Chicago Title and Trust Company, The Chicago Trust Company and
CT&T Funds is incorporated by reference to Exhibit No. 5(d) of
Post-Effective Amendment No. 7 to the Registration Statement as filed
via EDGAR on February 22, 1996.

Investment Advisory Agreement for Alleghany/Veredus SciTech Fund with
Veredus Asset Management LLC is incorporated by reference to Exhibit
(d) of Post-Effective Amendment No. 22 to the Registration Statement as
filed via EDGAR on June 30, 2000.

Investment Advisory Agreement for Alleghany/TAMRO Small Cap Fund with
TAMRO Capital Partners LLC is filed herewith.

Sub-Investment Advisory Agreement for Alleghany/Chicago Trust Growth &
Income Fund with Chicago Capital Management, Inc., dated July 1, 2000,
is incorporated by reference to Exhibit (d) of Post-Effective Amendment
No. 23 to the Registration Statement as filed via EDGAR on September
15, 2000.

Sub-Investment Advisory Agreement for Alleghany/Chicago Trust Small Cap
Value Fund with Chicago Capital Management, Inc., dated July 1, 2000,
is incorporated by reference to Exhibit (d) of Post-Effective Amendment
No. 23 to the Registration Statement as filed via EDGAR on September
15, 2000.

Sub-Investment Advisory Agreement for Alleghany/Chicago Trust Balanced
Fund with Chicago Capital Management, Inc., dated July 1, 2000, is
incorporated by reference to Exhibit (d) of Post-Effective Amendment
No. 23 to the Registration Statement as filed via EDGAR on September
15, 2000.

Sub-Investment Advisory Agreement for Alleghany/Chicago Trust Bond Fund
with Chicago Capital Management, Inc., dated July 1, 2000, is
incorporated by reference to Exhibit (d) of Post-Effective Amendment
No. 23 to the Registration Statement as filed via EDGAR on September
15, 2000.

Sub-Investment Advisory Agreement for Alleghany/Chicago Trust Municipal
Bond Fund with Chicago Capital Management, Inc., dated July 1, 2000, is
incorporated by reference to Exhibit (d) of Post-Effective Amendment
No. 23 to the Registration Statement as filed via EDGAR on September
15, 2000.

Sub-Investment Advisory Agreement for Alleghany/Chicago Trust Money
Market Fund with Chicago Capital Management, Inc., dated July 1, 2000,
is incorporated by reference to Exhibit (d) of Post-Effective Amendment
No. 23 to the Registration Statement as filed via EDGAR on September
15, 2000.

(e) Distribution Agreement between Alleghany Funds and Provident
Distributors, Inc., dated September 16, 1999 is incorporated by
reference to Exhibit (e) of Post-Effective Amendment No. 19 to the
Registration Statement as filed via EDGAR on February 15, 2000.

Amendment No. 1 to the Distribution Agreement is incorporated by reference to
Exhibit (e) of Post-Effective Amendment No. 22 to the Registration
Statement as filed via EDGAR on June 30, 2000.

(f) Not Applicable.

(g) Custodian Agreement between Bankers Trust Company and CT&T Funds, dated
June 1, 1997 is incorporated by reference to Exhibit No. 8(a) of
Post-Effective Amendment No. 10 to the Registration Statement as filed via
EDGAR on February 27, 1998.

Form of Amendment to Custodian Agreement between Alleghany Funds and
Bankers Trust Company, dated September 17, 1998 is incorporated by
reference to Exhibit (g) of Post-Effective Amendment No. 14 to the
Registration Statement as filed via EDGAR on December 31, 1998.

Amendment No. 1 to the Custodian Agreement is incorporated by reference to
Exhibit (e) of Post-Effective Amendment No. 22 to the Registration
Statement as filed via EDGAR on June 30, 2000.

Amendment No. 3 to the Custodian Agreement is filed herewith.

(h) Transfer Agency Services Agreement between Alleghany Funds and PFPC,
Inc., dated April 1, 2000, is incorporated by reference to Exhibit
(h)(1) of Post-Effective Amendment No. 22 to the Registration Statement
as filed via EDGAR on June 30, 2000.

Amendment No. 1 to the Transfer Agency Services Agreement is incorporated by
reference to Exhibit (h)(2) of Post-Effective Amendment No. 22 to the
Registration Statement as filed via EDGAR on June 30, 2000.

Administration Agreement between Alleghany Funds and Alleghany
Investment Services Inc., dated June 17, 1999, is incorporated by
reference to Exhibit (h) of Post-Effective Amendment No. 17 to the
Registration Statement as filed via EDGAR on June 28, 1999.

Amendment No. 1 to the Administration Agreement is incorporated by reference to
Exhibit (h)(3) of Post-Effective Amendment No. 22 to the Registration
Statement as filed via EDGAR on June 30, 2000.

Amendment No. 2 to the Administration Agreement is filed herewith.

Sub-Administration and Accounting Services Agreement between Alleghany
Investment Services Inc. and PFPC Inc., dated April 1, 2000, is
incorporated by reference to Exhibit (h)(4) of Post-Effective Amendment
No.
22 to the Registration Statement as filed via EDGAR on June 30, 2000.

Amendment No. 1 to the Sub-Administration and Accounting Services Agreement is
incorporated by reference to Exhibit (h)(5) of Post-Effective Amendment No.
22 to the Registration Statement as filed via EDGAR on June 30, 2000.

Amended and Restated Guaranty Agreement dated December 23, 1996,
between Chicago Title and Trust Company and CT&T Funds is incorporated
by reference to Exhibit (c) of Post-Effective Amendment No. 10 to the
Registration Statement as filed via EDGAR on February 27, 1998.

Master Services Agreement dated October 30, 1995, between Chicago Title
and Trust Company and certain of its subsidiaries is incorporated by
reference to Exhibit (e) of Post-Effective Amendment No. 7 to the
Registration Statement as filed via EDGAR on February 22, 1996.

(i) Not applicable.

(j) Not applicable.

(k) Not applicable.

(l) Not applicable.

(m) Amended and Restated Distribution and Services Plan pursuant to Rule
12b-1, dated June 1, 1997 as amended on September 17, 1998, is
incorporated by reference to Exhibit (m) of Post-Effective Amendment
No. 15 to the Registration Statement as filed via EDGAR on March 1,
1999.

Amended Schedule A to the Amended and Restated Distribution and
Services Plan pursuant to Rule 12b-1 is incorporated by reference to
Exhibit (h) of Post-Effective Amendment No. 21 to the Registration
Statement as filed via EDGAR on April 14, 2000.

(n) Not applicable.

(o) Amended Multiple Class Plan pursuant to Rule 18f-3, dated March 18,
1999, is incorporated by reference to Exhibit (m) of Post-Effective
Amendment No. 16 to the Registration Statement as filed via EDGAR on
April 30, 1999.

Amended Multiple Class Plan pursuant to Rule 18f-3, dated June 17,
1999, is incorporated by reference to Exhibit (o) of Post-Effective
Amendment No. 17 to the Registration Statement as filed via EDGAR on
June 28, 1999.

Schedule A of Amended Multiple Class Plan pursuant to Rule 18f-3, dated
June 17, 1999, as amended December 16, 1999, is incorporated by
reference to Exhibit (o) of Post-Effective Amendment No. 19 to the
Registration Statement as filed via EDGAR on February 15, 2000.

Amended Multiple Class Plan pursuant to Rule 18f-3, dated September 21,
2000, is filed herewith.

(p) Codes of Ethics of Registrant and Advisers are incorporated by
reference to Exhibit (p) to the Registration Statement as filed via
EDGAR on April 14, 2000.

Code of Ethics of Alleghany Funds and Code of Ethics of TAMRO Capital
Partners LLC, Chicago Capital Management and The Chicago Trust Company
are filed here with.

Item 24. Persons Controlled by or Under Common Control with Registrant.

None.

Item 25. Indemnification.

Section 10.2 of the Registrant's Trust Instrument provides as follows:

10.2 Indemnification. The Trust shall indemnify each of its Trustees
against all liabilities and expenses (including amounts paid in
satisfaction of judgments, in compromise, as fines and penalties, and
as counsel fees) reasonably incurred by him in connection with the
defense or disposition of any action, suit or other proceeding, whether
civil or criminal, in which he may be involved or with which he may be
threatened, while as a Trustee or thereafter, by reason of his being or
having been such a Trustee except with respect to any matter as to
which he shall have been adjudicated to have acted in bad faith,
willful misfeasance, gross negligence or reckless disregard of his
duties, provided that as to any matter disposed of by a compromise
payment by such person, pursuant to a consent decree or otherwise, no
indemnification either for said payment or for any other expenses shall
be provided unless the Trust shall have received a written opinion from
independent legal counsel approved by the Trustees to the effect that
if either the matter of willful misfeasance, gross negligence or
reckless disregard of duty, or the matter of bad faith had been
adjudicated, it would in the opinion of such counsel have been
adjudicated in favor of such person. The rights accruing to any person
under these provisions shall not exclude any other right to which he
may be lawfully entitled, provided that no person may satisfy any right
of indemnity or reimbursement hereunder except out of the property of
the Trust. The Trustees may make advance payments in connection with
the indemnification under this Section 10.2, provided that the
indemnified person shall have given a written undertaking to reimburse
the Trust in the event it is subsequently determined that he is not
entitled to such indemnification.

The Trust shall indemnify officers, and shall have the power to
indemnify representatives and employees of the Trust, to the same
extent that Trustees are entitled to indemnification pursuant to this
Section 10.2.

Insofar as indemnification for liability arising under the 1933 Act may
be permitted to trustees, officers and controlling persons of Registrant
pursuant to the foregoing provisions, or otherwise, Registrant has been advised
that in the opinion of the SEC such indemnification is against public policy as
expressed in that Act and is, therefore, enforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by
Registrant of expenses incurred or paid by a trustee, officer or controlling
person of Registrant in the successful defense of any action, suit or
proceeding) is asserted by such trustee, officer or controlling person in
connection with the securities being registered, Registrant will, unless in the
opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in that Act and will
be governed by the final adjudication of such issue.

Section 10.3 of the Registrant's Trust Instrument, also provides for
the indemnification of shareholders of the Registrant. Section 10.3 states as
follows:

10.3 Shareholders. In case any Shareholder or former Shareholder of any
Series shall be held to be personally liable solely by reason of his
being or having been a shareholder of such Series and not because of
his acts or omissions or for some other reason, the Shareholder or
former Shareholder (or his heirs, executors, administrators or other
legal representatives or, in the case of a corporation or other entity,
its corporate or other general successor) shall be entitled out of the
assets belonging to the applicable Series to be held harmless from and
indemnified against all loss and expense arising from such liability.
The Trust, on behalf of the affected Series, shall, upon request by the
Shareholder, assume the defense of any claim made against the
Shareholder for any act or obligation of the Trust and satisfy any
judgment thereon from the assets of the Series.

In addition, the Registrant currently has a trustees' and officers' liability
policy covering certain types of errors and omissions.

Item 26. Business and Other Connections of Advisers and Sub-Advisers.

The Chicago Trust Company conducts a general financial services
business in four areas. The institutional investment management group manages
equity and fixed income institutional assets in excess of $6.0 billion,
primarily in employee benefit plans, foundation accounts and insurance company
accounts. The employee benefits services group offers profit sharing plans,
matching savings plans, money purchase pensions and consulting services, and has
become one of the leading providers of 401(k) salary deferral plans to mid-sized
companies. The personal trust and investment services group provides investment
management and trust and estate planning primarily for accounts in the $500,000
to $10 million range. The real estate trust services group provides the means
whereby real estate can be conveyed to a trustee while reserving to the
beneficiaries the full management and control of the property. This group also
facilitates tax-deferred exchanges of income-producing real property.

Montag & Caldwell, Inc.'s ("Montag & Caldwell") sole business is
managing assets primarily for employee benefit, endowment, charitable, and other
institutional clients, as well as high net worth individuals.

At Talon Asset Management ("Talon"), Mr. Terry Diamond is Chairman and
a Director, Mr. Alan R. Wilson is President and a Director, and Barbara
Rumminger, Treasurer, are also, respectively, Chairman and a Director, President
and a Director, and Secretary of Talon Securities, Inc., One North Franklin
Street, Chicago, Illinois, a registered broker dealer. Mr. Diamond is also a
director of Amli Realty Company, 125 South Wacker Drive, Chicago, Illinois, a
private real estate investment company.

Alleghany Asset Management holds a 40% minority interest in Veredus
Asset Management LLC ("Veredus"), with certain options over the next eight years
to acquire up to a 70% interest.

Blairlogie Capital Management ("Blairlogie") is an indirect,
wholly-owned subsidiary of Alleghany Corporation.

TAMRO Capital Partners, LLC ("TAMRO") is partially owned by Alleghany
Corporation.

Chicago Capital Management, Inc. ("CCM") is a
wholly-owned subsidiary of The Chicago Trust Company.

The directors and officers of the Trust's Investment Advisers and
Sub-Investment Advisers are set forth below. To the knowledge of the Registrant,
unless so noted, none of these individuals is or has been at any time during the
past two fiscal years engaged in any other business, profession, vocation or
employment of a substantial nature.
<TABLE>
<CAPTION>

THE CHICAGO TRUST COMPANY
<S> <C> <C> <C>

----------------------- ---------------- ------------------------------------------------------------------
NAME TITLE/ OTHER BUSINESS
POSITION
----------------------- ---------------- ------------------------------------------------------------------
----------------------- ---------------- ------------------------------------------------------------------
Stuart D. Bilton President and President and Director, Alleghany Asset Management, Inc.;
Director Chairman, Chicago Capital Management, Inc.; Director of each of
the following entities:
Montag & Caldwell, Inc., The
Chicago Trust Company of
California, Chicago Deferred
Exchange Corporation,
Chicago Deferred Exchange
Corporation - CA, Alleghany
Investment Services, Inc.;
President and Chief
Executive Officer,
Blairlogie International
LLC; Trustee, Alleghany
Foundation; Manager, TAMRO
Capital Partners LLC
----------------------- ---------------- ------------------------------------------------------------------
----------------------- ---------------- ------------------------------------------------------------------
Edward S. Bottum Director Managing Director, Chase Franklin Corp.; Director, Alleghany
Asset Management, Inc.; Corporate Director, Kellwood Corp.;
Chairman, Learning Insights L.L.C.; Trustee, Pacific Innovations
Funds; Director, PetMed Express.com, Inc.; Trustee, Underwriters
Laboratories, Inc.; Senior Advisor, American International
Group.
----------------------- ---------------- ------------------------------------------------------------------
----------------------- ---------------- ------------------------------------------------------------------
Ronald E. Canakaris Director Director, Alleghany Asset Management, Inc.; Director, Montag &
Caldwell, Inc.
----------------------- ---------------- ------------------------------------------------------------------
----------------------- ---------------- ------------------------------------------------------------------
David B. Cuming Director Senior Vice President and Chief Financial Officer, Alleghany
Corp.; Director, Alleghany Asset Management, Inc.; Director,
Montag & Caldwell, Inc.
----------------------- ---------------- ------------------------------------------------------------------
----------------------- ---------------- ------------------------------------------------------------------
Robert M. Hart Director Senior Vice
President, General Counsel
and Secretary, Alleghany
Corp.; Director, Alleghany
Properties, Inc.; Director,
Sacramento Properties
Holdings, Inc.; Director,
Alleghany Asset Management,
Inc.; Director, Alleghany
Underwriting Holdings Ltd.
----------------------- ---------------- ------------------------------------------------------------------

----------------------- ---------------- ------------------------------------------------------------------
Jefferson W. Kirby Director Vice President, Alleghany Corp.; Director, Alleghany Asset
Management, Inc.; Director, Connecticut Surety Corp.; Director,
Covenant Insurance Group; Director, Eldorado Bancshares, Inc.;
Director, Sentius Corp.; Board Member, The F.M. Kirby
Foundation, Inc.; Board Member, Lafayette College; Board Member,
The National Football Foundation; Board Member, The Peck School;
Director, Veredus Asset Management LLC.
----------------------- ---------------- ------------------------------------------------------------------
----------------------- ---------------- ------------------------------------------------------------------
Solon P. Patterson Director
Director, Alleghany Asset
Management, Inc.; Director
and Chairman, Montag and
Caldwell, Inc.; Director,
The Georgia Chamber of
Commerce; Board Member of
Governors of the Investment
Counsel Association of
America.
----------------------- ---------------- ------------------------------------------------------------------
----------------------- ---------------- ------------------------------------------------------------------
Robert E. Riley Director President and Chief Executive Officer, Joseph P. Kennedy
Enterprises, Inc.; Director, John F. Kennedy Library Foundation;
Director, Alleghany Asset Management, Inc.; Associate Trustee,
Holy Cross College; Overseer, Beth Israel Deaconess Medical
Center; Overseer, Tufts Medical School.
----------------------- ---------------- ------------------------------------------------------------------
----------------------- ---------------- ------------------------------------------------------------------
Richard P. Toft Director Director and Chairman, Alleghany Asset Management, Inc.;
Director, Peoples Energy Corp.; Director, Fidelity National
Financial, Inc.
----------------------- ---------------- ------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------
The Chicago Trust Company Elected Officers

-----------------------------------------------------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Hubert A. Adams Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Kenneth C. Anderson Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Mark D. Berman Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Stuart D. Bilton Director / President & Chief Executive Officer
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Robert M. Boyles Executive Vice President and Chief Operating Officer
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Mary Cunningham-Watson Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Gerald F. Dillenburg Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Richard S. Drake Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Jonathan J. Dunlap Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Frederick W. Engimann Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Patricia A. Falkowski Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Joan M. Giardina Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Kathleen M. Jackson Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Daniel R. Joyce Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Michael J. Lambert Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
David E. Llewellyn Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Thomas J. Marthaler Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Roger A. Meier Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Mark A. Metz Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Bernard F. Myszkowski Senior Vice President and Chief Equity Officer
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Seymour A. Newman Senior Vice President, Treasurer and Chief Financial Officer
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
David L. Nyberg Secretary, Trust Counsel
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
William J. Pappas Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Lois A. Pasquale Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
B. Wyckliffe Pattishall, Jr. Executive Vice President & Chief Operating Officer
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Jeanne D. Reder Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Alan B. Shidler Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Carla V. Straeten Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
George W. Vander Vennett Senior Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Barbara E. Weber Vice President & Director of Human Resources
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Naomi B. Weitzel Vice President
------------------------------------------ ----------------------------------------------------------------
------------------------------------------ ----------------------------------------------------------------
Terry L. Zirkle Senior Vice President
------------------------------------------ ----------------------------------------------------------------

</TABLE>

MONTAG & CALDWELL, INC.

Montag & Caldwell is a registered investment adviser providing
investment management services to the Registrant.

The information required by this Item 26 with respect to any other
business, profession, vocation or employment of a substantial nature
engaged in by directors and officers of the Montag & Caldwell during
the past two years is incorporated by reference to Form ADV filed by
Montag & Caldwell pursuant to the Investment Advisers Act of 1940 (SEC
File No. 801-15398).

------------------------------ --------------------------------------
Jane M. Angolia Assistant Vice President
------------------------------ --------------------------------------
------------------------------ --------------------------------------
Sandra M. Barker Vice President
------------------------------ --------------------------------------
------------------------------ --------------------------------------
Stuart D. Bilton Director
------------------------------ --------------------------------------
------------------------------ -------------------------------------
Janet B. Bunch Vice President
------------------------------ --------------------------------------
------------------------------ --------------------------------------
Debra Bunde Reams Vice President
------------------------------ --------------------------------------
------------------------------ --------------------------------------
Ronald E. Canakaris President, Chief Executive Officer,
Chief Investment Officer and Director
------------------------------ --------------------------------------
------------------------------ --------------------------------------
Elizabeth C. Chester Senior Vice President and Secretary
------------------------------ --------------------------------------
------------------------------ --------------------------------------
David B. Cuming Director
------------------------------ -------------------------------------
------------------------------ --------------------------------------
Jane R. Davenport Vice President
------------------------------ -------------------------------------
------------------------------ -------------------------------------
James L. Deming Vice President
------------------------------ -------------------------------------
------------------------------ -------------------------------------
Helen M. Donahue Assistant Vice President
------------------------------ -------------------------------------
------------------------------ --------------------------------------
Marcia C. Dubs Assistant Vice President
------------------------------ ------------------------------------
------------------------------ ----------------------------------
Brion D. Friedman Vice President
------------------------------ ----------------------------------
------------------------------ -------------------------------------
Charles Jefferson Hagood Vice President
------------------------------ --------------------------------
------------------------------ -----------------------------------
Richard W. Haining Vice President
------------------------------ --------------------------------
------------------------------ ----------------------------------
Mark C. Hayes Assistant Vice President
------------------------------ ------------------------------------
------------------------------ -------------------------------
Lana M. Jordan Vice President
------------------------------ --------------------------------
------------------------------ ------------------------------------
Rebecca M. Keister Vice President
------------------------------ ------------------------------------
------------------------------ ----------------------------------
William E. Long III Vice President
------------------------------ ------------------------------------
------------------------------ ------------------------------------
Charles E. Markwalter Vice President
------------------------------ ------------------------------------
------------------------------ -------------------------------------
Grover C. Maxwell III Vice President
------------------------------ -----------------------------------
------------------------------ ------------------------------------
Michael A. Nadal Vice President
------------------------------ -------------------------------------
------------------------------ -----------------------------------
Solon P. Patterson Chairman of the Board
------------------------------ ------------------------------------
------------------------------ -------------------------------------
Carla T. Phillips Assistant Vice President
------------------------------ ------------------------------------
------------------------------ ------------------------------------
Brian W. Stahl Vice President and Treasurer
------------------------------ ----------------------------------
------------------------------ ----------------------------------
M. Scott Thompson Vice President
------------------------------ -----------------------------------
------------------------------ -----------------------------------
Debbie J. Thomas Assistant Vice President
------------------------------ -----------------------------------
------------------------------ -------------------------------------
David L. Watson Vice President
------------------------------ ------------------------------------
------------------------------ --------------------------------------
William A. Vogel Senior Vice President
------------------------------ -------------------------------------
------------------------------ ------------------------------------
Homer W. Whitman, Jr. Senior Vice President
------------------------------ ------------------------------------
------------------------------ ------------------------------------
John S. Whitney, III Vice President

VEREDUS ASSET MANAGEMENT LLC

Veredus is a registered investment adviser providing investment
management services to the Registrant.

The information required by this Item 26 with respect to any other
business, profession, vocation or employment of a substantial nature
engaged in by directors and officers of the Veredus during the past two
years is incorporated by reference to Form ADV filed by Veredus
pursuant to the Investment Advisers Act of 1940 (SEC File No.
801-55565).

-------------------------------- -----------------------------------
Stuart D. Bilton Director
-------------------------------- --------------------------------
-------------------------------- -----------------------------------
James R. Jenkins Director, Vice President
and Chief Operating Officer
-------------------------------- ------------------------------------
-------------------------------- ------------------------------------
Jefferson W. Kirby Director
-------------------------------- ------------------------------------
-------------------------------- -----------------------------------
Charles P. McCurdy, Jr. Director; Executive Vice President
and Portfolio Manager
-------------------------------- ----------------------------------
-------------------------------- ----------------------------------
Charles F. Mercer, Jr. Vice President and Director of
Research
-------------------------------- ----------------------------------
-------------------------------- ------------------------------------
John S. Poole Vice President of Business
Development
-------------------------------- ------------------------------------
-------------------------------- ------------------------------------
B. Anthony Weber Director, President and Chief
Investment Officer
-------------------------------- ----------------------------------

BLAIRLOGIE CAPITAL MANAGEMENT

Blairlogie is a registered investment adviser providing investment
management services to the Registrant.

The information required by this Item 26 with respect to any other
business, profession, vocation or employment of a substantial nature
engaged in by directors and officers of the Blairlogie during the past
two years is incorporated by reference to Form ADV filed by Blairlogie
pursuant to the Investment Advisers Act of 1940 (SEC File No.
801-48185).

-------------------------------- -----------------------------------
Gavin Dobson Chief Executive Officer
-------------------------------- -----------------------------------
-------------------------------- ------------------------------------
James Smith Chief Investment Officer
-------------------------------- ------------------------------------

TAMRO CAPITAL PARTNERS, INC.

TAMRO is a registered investment adviser providing investment
management services to the Registrant.

The information required by this Item 26 with respect to any other
business, profession, vocation or employment of a substantial nature
engaged in by directors and officers of TAMRO during the past two years
is incorporated by reference to Form ADV filed by TAMRO pursuant to the
Investment Advisers Act of 1940 (SEC File No. 801-58056).

-------------------------------- ------------------------------
Ronald A. Marsilia Chief Executive Officer

-------------------------------- ---------------------------------
-------------------------------- ----------------------------------
Philip Tasho Chief Investment Officer
-------------------------------- --------------------------------

TALON ASSET MANAGEMENT, INC.

Talon is a registered investment adviser providing investment
management services to the Registrant.

The information required by this Item 26 with respect to any other
business, profession, vocation or employment of a substantial nature
engaged in by directors and officers of Talon during the past two years
is incorporated by reference to Form ADV filed by Talon pursuant to the
Investment Advisers Act of 1940 (SEC File No. 801-2175).

-------------------------------- ---------------------------------
Terry D. Diamond Chairman and Director
-------------------------------- ----------------------------------
-------------------------------- ----------------------------------
Sophia A. Erskine Corporate Secretary
-------------------------------- ---------------------------------
-------------------------------- -----------------------------------
Barbara L. Rumminger Treasurer
-------------------------------- ----------------------------------
-------------------------------- -----------------------------------
Alan R. Wilson President and Director
-------------------------------- ----------------------------------

CHICAGO CAPITAL MANAGEMENT, INC.

CCM is a registered investment adviser providing investment management
services to the Registrant.

The information required by this Item 26 with respect to any other
business, profession, vocation or employment of a substantial nature
engaged in by directors and officers of CCM during the past two years
is incorporated by reference to Form ADV filed by CCM pursuant to the
Investment Advisers Act of 1940 (SEC File No. 801-57498).
<TABLE>
<S> <C> <C>

-------------------------- -------------------------- -----------------------------------------------------
NAME TITLE/ OTHER BUSINESS
POSITION
-------------------------- -------------------------- -----------------------------------------------------
-------------------------- -------------------------- -----------------------------------------------------
Stuart D. Bilton Chairman President and Director, Alleghany Asset Management,
Inc.; President and Director, The Chicago Trust
Co.; Director of each of the following entities:
Montag & Caldwell, Inc., The Chicago Trust Company
of California, Chicago Deferred Exchange
Corporation, Chicago Deferred Exchange Corporation
- CA, Alleghany Investment Services, Inc.;
President and Chief Executive Officer, Blairlogie
International LLC; Trustee, Alleghany Foundation;
Manager, TAMRO Capital Partners LLC
-------------------------- -------------------------- -----------------------------------------------------
-------------------------- -------------------------- -----------------------------------------------------
Robert M. Boyles President Executive Vice President, Alleghany Asset
Management, Inc.; Manager, TAMRO Capital Partners
LLC
-------------------------- -------------------------- -----------------------------------------------------
-------------------------- -------------------------- -----------------------------------------------------
Seymour A. Newman Executive Vice President Vice President and Treasurer, Alleghany Asset
and Treasurer Management, Inc.; Senior Vice President and
Treasurer, The
Chicago Trust
Company;
Director, Chief
Financial
Officer and
Treasurer,
Chicago
Deferred
Exchange
Corporation;
Director, Vice
President,
Chief Financial
Officer,
Secretary and
Treasurer, The
Chicago Trust
Company of
California;
Director, Vice
President,
Chief Financial
Officer,
Secretary and
Treasurer,
Chicago
Deferred
Exchange
Corporation -
CA; Treasurer
and Secretary,
Alleghany
Investment
Services Inc.;
Assistant
Treasurer,
Montag &
Caldwell, Inc.;
Senior Vice
President,
Chief Financial
Officer and
Treasurer,
Blairlogie
International
LLC
-------------------------- -------------------------- -----------------------------------------------------
-------------------------- -------------------------- -----------------------------------------------------
Frederick W. Engimann Executive Vice President Senior Vice President, The Chicago Trust Company
and Managing Director
-------------------------- -------------------------- -----------------------------------------------------
-------------------------- -------------------------- -----------------------------------------------------
Patricia A. Falkowski Executive Vice President Senior Vice President, The Chicago Trust Company
and Managing Director
-------------------------- -------------------------- -----------------------------------------------------
-------------------------- -------------------------- -----------------------------------------------------
Bernard F. Myszkowski Executive Vice President Senior Vice President, The Chicago Trust Company
and Managing Director
-------------------------- -------------------------- -----------------------------------------------------
-------------------------- -------------------------- -----------------------------------------------------
Carla Straeten Vorhees Executive Vice President Senior Vice President, The Chicago Trust Company
and Managing Director
-------------------------- -------------------------- -----------------------------------------------------

</TABLE>

<PAGE>

Item 27. Principal Underwriters.

(a) Provident Distributors, Inc. (the "Distributor") acts as distributor for
Alleghany Funds pursuant to a distribution agreement dated September 16,
1999 and effective on December 1, 1999. Provident Distributors, Inc. is
registered with the Securities and Exchange Commission as a broker-dealer
and is a member of the National Association of Securities Dealers.
Provident Distributors, Inc. is located at 3200 Horizon Drive, King of
Prussia, Pennsylvania 19406.

The Distributor act as principal underwriter for the following
investment companies as of 12/1/00:

International Dollar Reserve Fund I, Ltd.
Provident Institutional Funds Trust
Columbia Common Stock Fund, Inc.
Columbia Growth Fund, Inc.
Columbia International Stock Fund, Inc.
Columbia Special Fund, Inc.
Columbia Small Cap Fund, Inc.
Columbia Real Estate Equity Fund, Inc.
Columbia Balanced Fund, Inc.
Columbia Daily Income Company
Columbia U.S Government Securities Fund, Inc.
Columbia Fixed Income Securities Fund, Inc.
Columbia Municipal Bond Fund, Inc.
Columbia High Yield Fund, Inc.
Columbia National Municipal Bond Fund, Inc.
Columbia Strategic Value Fund, Inc.
Columbia Technology Fund, Inc.
GAMNA Series Funds, Inc.
WT Investment Trust
Kalmar Pooled Investment Trust
The RBB Fund, Inc.
Robertson Stephens Investment Trust
Harris Insight Funds Trust
Alleghany Funds
Deutsche Asset Management VIT Funds
First Choice Funds Trust
Forward Funds, Inc.
IBJ Funds Trust
Light Index Funds, Inc.
LKCM Funds
Matthewa International Funds
McM Funds
Metropolitan West Funds
New Covenant Funds, Inc.
Pictet Funds
Stratton Growth Fund, Inc.
Stratton Monthly Dividend REIT Shares, Inc.
The Stratton Funds, Inc.
The Galaxy Fund
The Galaxy VIP Fund
Galaxy Fund II
Trainer, Wortham First Mutual Funds
Undiscovered Managers Funds
Wilshire Target Funds, Inc.
Weiss, Peck & Greer Funds trust
Weiss, Peck & Greer International Fund
WPG Growth and Income Fund
WPG Growth Fund
WPG Tudor Fund
RWB/WPG U.S. Large Stock Fund
Tomorrow Funds Retirement Trust

The BlackRock Funds, Inc. (Distributed by BlackRock Distributors, Inc.,
a wholly owned subsidiary of
Provident Distributors, Inc.)

Northern Funds Trust and Northern Institutional Funds trust
(Distributed by Northern Funds Distributors, LLC., a wholly owned
subsidiary of Provident Distributors, Inc.)

The Offit Investment Fund Fund, Inc. (Distributed by Offit Funds
Distributor, Inc., a wholly owned
subsidiary of Provident Distributors, Inc.)

The Offit Variable Insurance Fund, Inc. (Distributed buy Offit Funds
Distributor, Inc., a wholly owned
subsidiary of Provident Distributors, Inc.)

ABN AMRO Funds (Distributed by ABN AMRO Distribution Services (USA),
Inc., a wholly owned subsidiary of Provident Distributors, inc.)

(b) The information required by this Item 27(b) with respect to each
director, officer or partner of Provident Distributors, Inc. ("PDI") is
incorporated by reference to Schedule A of Form BD filed by PDI with
the SEC pursuant to the Securities Act of 1934 (File No. 8-46564). No
director, officer or partner of PDI holds a position or office with the
Registrant.

Item 28. Location of Accounts and Records.

All records described in Section 31(a) of the 1940 Act and the Rules 17
CFR 270.31a-1 to 31a-31 promulgated thereunder, are maintained by the Fund's
Investment Advisers and Sub-Investment Advisers as listed below, except for
those maintained by each Fund's Custodian, Bankers Trust Company, 16 Wall
Street, New York, New York 10005 and State Street Bank and Trust Company, 801
Pennsylvania, Kansas City, MO 64105, and the Fund's Sub-Administrator and
Transfer, Redemption, Dividend Disbursing and Accounting Agent, PFPC Inc., 4400
Computer Drive, Westborough, MA 01581.

The Chicago Trust Company, 171 North Clark Street, Chicago, IL 60601
Montag & Caldwell, Inc., 3343 Peachtree Road, N.E., Atlanta, GA 30326
Veredus Asset Management LLC, 1 Paragon Center, 6060 Dutchmans Lane, Suite 320,
Louisville, KY 40205 Blairlogie Capital Management, 4th Floor, 125 Princes
Street, Edinburgh EH2 4AD, Scotland TAMRO Capital Partners LLC, 1660 Duke
Street, Alexandria, VA 22314 Talon Asset Management, Inc., One North Franklin,
Chicago, IL 60606 Chicago Capital Management, Inc., 171 North Clark Street,
Chicago, IL 60601

Item 29. Management Services.

Not Applicable.

Item 30. Undertakings.

Not Applicable.

<PAGE>

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940, as amended, the Registrant has duly caused this
Post-Effective Amendment to its Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized, in the city of Chicago,
the State of Illinois on the 21st day of December, 2000.

ALLEGHANY FUNDS

By: /s/KENNETH C. ANDERSON
Kenneth C. Anderson, President

Pursuant to the requirements of the Securities Act of 1933, this Registration
Statement of Alleghany Funds has been signed below by the following persons in
his or her capacity on the 21st day of December, 2000.

Signature Capacity

/s/ STUART D. BILTON Chairman, Board of Trustees 12/21/00
Stuart D. Bilton

/s/ NATHAN SHAPIRO Trustee 12/21/00
Nathan Shapiro

/s/ GREGORY T. MUTZ Trustee 12/21/00
Gregory T. Mutz

/s/ LEONARD F. AMARI Trustee 12/21/00
Leonard F. Amari

/s/ DOROTHEA C. GILLIAM Trustee 12/21/00
Dorothea C. Gilliam

/s/ ROBERT A. KUSHNER Trustee 12/21/00
Robert A. Kushner

/s/ ROBERT B. SCHERER Trustee 12/21/00
Robert B. Scherer

/s/ DENIS SPRINGER Trustee 12/21/00
Denis Springer

/s/ KENNETH C. ANDERSON President 12/21/00
Kenneth C. Anderson (Principal Executive Officer)

/s/ GERALD F. DILLENBURG Secretary, Treasurer and Vice 12/21/00
Gerald F. Dillenburg President (Principal Accounting
& Financial Officer)

Exhibit Index - Post Effective Amendment No. 24 - Alleghany Funds

Exhibit No. Title

D(1) Investment Advisory Agreement - Alleghany/TAMRO Large
Cap Value Fund
D(2) Investment Advisory Agreement - Alleghany/TAMRO Small Cap
Fund
G Amendment No. 3 to Custody Agreement between Alleghany Funds
and Bankers Trust
H Amendment No. 2 to Administration Agreement between
Alleghany Funds and Alleghany Investment Services, Inc.
O Amended and Restated 18f-3 Plan dated September 21, 2000 P(1) Code of Ethics
for Alleghany Funds
P(2) Code of Ethics for TAMRO Capital Partners LLC, The Chicago
Trust Company and Chicago Capital Management, Inc.