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ESC STRATEGIC FUNDS, INC.
SUPPLEMENT DATED JANUARY 2, 1998
TO PROSPECTUS DATED JULY 29, 1997
Effective January 2, 1998, Equitable Securities Corporation ("ESC"),
the investment adviser to ESC Strategic Funds, Inc. ("Company") was acquired by
SunTrust Banks, Inc. ("SunTrust"). In connection with the acquisition
("Acquisition"), ESC was renamed SunTrust Equitable Securities ("STES") and
will continue to act as investment adviser to the Company under this new name
pursuant to a new investment advisory agreement with ESC. There is no change in
the Managers of each of the Company's portfolios ("Funds") or in the nature or
conditions of their service. The investment advisory agreement with STES and
the continuing arrangements with the Managers were approved by the Company's
Board of Directors on October 20, 1997. In accordance with the legal
requirements, the new investment advisory agreement and the portfolio
management agreements with ESC subsidiary, Equitable Asset Management ("EAM")
with respect to ESC Strategic Small Cap Fund, ESC Strategic Growth Fund and ESC
Strategic Value Fund, were also approved by shareholders at a Special Meeting
held December 19, 1997.
SunTrust is a bank holding company whose main office is at 303
Peachtree Street, N.E., 30th Floor, Center 645, Atlanta, Georgia 30308.
SunTrust provides traditional banking, trust and investment services as well as
other services and products through its offices in Alabama, Florida, Georgia
and Tennessee. At June 30, 1997, SunTrust's banking assets totaled $55.5
billion and its discretionary trust assets totaled $62.8 billion. Pursuant to
the Acquisition, SunTrust Capital Markets ("STCM"), a wholly-owned subsidiary
of SunTrust, was merged into ESC, with ESC as the surviving company. STCM is a
registered broker-dealer and conducts a variety of underwriting and investment
banking services for corporate and institutional clients, primarily in the
southeastern states. STCM's underwriting and trading activities involve
municipal and mortgage-related securities, U.S. government agency securities,
consumer receivable-related securities and commercial paper. Changes to
management personnel of ESC and STCM are not presently contemplated.
In connection with the Acquisition, effective January 2, 1998, BISYS
Fund Services Limited Partnership d/b/a BISYS Fund Services became the
Distributor of shares of common stock of each of the Funds of the Company
pursuant to a Distribution Agreement between BISYS Fund Services and the
Company ("Distribution Agreement"). The Distribution Agreement was approved by
the Board of Directors at the October 20, 1997 Board Meeting. As Distributor,
BISYS Fund Services will receive fees pursuant to the Funds' Service and
Distribution Plan. BISYS Fund Services also serves as the Company's
Administrator; its address is 3435 Stelzer Road, Columbus, Ohio 43219.
