Rule 497(e)
File Nos. 33-69686 and 811-8064
The Montgomery Funds II
(Class R)
Supplement dated May 22, 2000 to the
Prospectuses dated April 6, 2000
Portfolio Manager:
Effective May 31, 2000, the Montgomery Growth Fund will be managed by Andrew
Pratt. Also effective May 31, 2000, the Montgomery U.S. Emerging Growth Fund
will be managed by Kathryn Peters, who is currently a co-manager of the Fund.
John Boich and Oscar Castro, who are currently members of the management team on
the Montgomery Global 20 Fund, will assume primary responsibility for the
management of the Fund. The Montgomery Balanced Fund will remain a fund-of-funds
investing in the Montgomery Growth, Equity Income, Total Return Bond and
Government Money Market Funds. Please refer to the Prospectus for the investment
backgrounds of Kathryn Peters, John Boich and Oscar Castro; and those of the
portfolio managers for the underlying funds in the Montgomery Balanced Fund. The
investment background of Andrew Pratt is set forth below:
Andrew Pratt, CFA, Portfolio Manager
|X| Montgomery Growth Fund (1993-1999, since 2000)
Mr. Pratt joined Montgomery in 1993 as part of the Growth Equity team
responsible for managing the Montgomery Growth and U.S. Emerging Growth Funds.
More recently, he has been managing core U.S. equity portfolios for
institutional clients. Prior to joining Montgomery, Mr. Pratt was at
Hewlett-Packard Company, where, as an equity analyst, he managed a portfolio of
small-cap technology companies and researched private placement and venture
capital investments. Previously, he worked in the Capital Markets Group at
Fidelity Investments in Boston. Mr. Pratt holds a Bachelor of Arts degree from
University of Wisconsin and a Master of Science in Finance from Boston College.
He is a chartered financial analyst.
Redemption Fees:
<TABLE>
Effective June 30, 2000, the Montgomery Growth Fund, the Montgomery U.S.
Emerging Growth Fund, the Montgomery Small Cap Fund, the Montgomery Balanced
Fund, the Montgomery Global Opportunities Fund, the Montgomery Global 20 Fund,
the Montgomery Global Long-Short Fund, the Montgomery Global Communications
Fund, the Montgomery Emerging Markets Fund, the Montgomery Emerging Markets
Focus Fund, and the Montgomery Asia Fund will each charge a redemption fee of 2%
on shares held for less than 3 months. For the following Funds that already
impose a redemption fee, the 2% redemption fee is an adjustment to the
redemption fee feature currently in place for each of those Funds as summarized
below:
<PAGE>
Rule 497(e)
File Nos. 33-69686 and 811-8064
<CAPTION>
- --------------------------------- ---------------------------------------- -----------------------------------------
Fund Current Redemption Fee Feature New Redemption Fee Feature
- --------------------------------- ---------------------------------------- -----------------------------------------
<S> <C> <C>
Global Long-Short 2% for one year 2% for three months
- --------------------------------- ---------------------------------------- -----------------------------------------
Emerging Markets Focus 1% for one year 2% for three months
- --------------------------------- ---------------------------------------- -----------------------------------------
Emerging Asia 2% for six months 2% for three months
- --------------------------------- ---------------------------------------- -----------------------------------------
</TABLE>
The new 2% redemption fee applies to all existing and subsequent investments and
is intended to compensate each Fund for the increased expenses to longer-term
shareholders and the disruptive effect on that Fund's portfolio caused by
short-term investments. The redemption fee will be assessed on the net asset
value of the shares redeemed and will be deducted from the redemption proceeds
otherwise payable to the shareholder. Each Fund will retain the fee charged.
Principal Strategy:
Effective July 1, 2000, the Montgomery Government Money Market Fund may invest
up to 5% of its total assets in corporate debt securities. The Fund will
continue to seek to provide shareholders with current income consistent with
liquidity and the preservation of capital.
<PAGE>
Rule 497(e)
File Nos. 33-69686 and 811-8064
The Montgomery Funds II
(Class P)
Supplement dated May 22, 2000 to the
Prospectus dated April 6, 2000
Portfolio Manager:
Effective May 31, 2000, the Montgomery Growth Fund will be managed by Andrew
Pratt. Also effective May 31, 2000, John Boich and Oscar Castro, who are
currently members of the management team on the Montgomery Global 20 Fund, will
assume primary responsibility for the management of the Fund. The Montgomery
Balanced Fund will remain a fund-of-funds investing in the Montgomery Growth,
Equity Income, Total Return Bond and Government Money Market Funds. Please refer
to the Prospectus for the investment backgrounds of John Boich and Oscar Castro,
and those of the portfolio managers for the underlying funds in the Montgomery
Balanced Fund. The investment background of Andrew Pratt is set forth below:
Andrew Pratt, CFA, Portfolio Manager
|X| Montgomery Growth Fund (1993-1999, since 2000)
Mr. Pratt joined Montgomery in 1993 as part of the Growth Equity team
responsible for managing the Montgomery Growth and U.S. Emerging Growth Funds.
More recently, he has been managing core U.S. equity portfolios for
institutional clients. Prior to joining Montgomery, Mr. Pratt was at
Hewlett-Packard Company, where, as an equity analyst, he managed a portfolio of
small-cap technology companies and researched private placement and venture
capital investments. Previously, he worked in the Capital Markets Group at
Fidelity Investments in Boston. Mr. Pratt holds a Bachelor of Arts degree from
University of Wisconsin and a Master of Science in Finance from Boston College.
He is a chartered financial analyst.
Redemption Fees:
Effective June 30, 2000, the Montgomery Growth Fund, the Montgomery Small Cap
Fund, the Montgomery Balanced Fund, the Montgomery Global 20 Fund, and the
Montgomery Emerging Markets Fund will each charge a redemption fee of 2% on
shares held for less than 3 months. The fee applies to all existing and
subsequent investments and is intended to compensate each Fund for the increased
expenses to longer-term shareholders and the disruptive effect on that Fund's
portfolio caused by short-term investments. The redemption fee will be assessed
on the net asset value of the shares redeemed and will be deducted from the
redemption proceeds otherwise payable to the shareholder. Each Fund will retain
the fee charged.
<PAGE>
Rule 497(e)
File Nos. 33-69686 and 811-8064
Investment Strategy:
Effective July 1, 2000, the Montgomery Government Money Market Fund may invest
up to 5% of its total assets in corporate debt securities. The Fund will
continue to seek to provide shareholders with current income consistent with
liquidity and the preservation of capital.
