NORTHSTAR INVESTMENT MANAGEMENT CORPORATION
TWO PICKWICK PLAZA
GREENWICH, CONNECTICUT 06830
(203)863-6216
VIA EDGAR TRANSMISSION
October 30, 1996
Securities and Exchange Commission
450 Fifth Street
Washington, D.C. 20549
RE: NORTHSTAR FUNDS
Northstar Balance Sheet Opportunities Fund - No. 33-850/811-2239
Northstar Strategic Income Fund - No. 33-76574/811-08414
Gentlemen:
Transmitted herewith for filing pursuant to Rule 497(e) under the Securities Act
of 1933 is a supplement, dated October 30, 1996, to the combined Prospectus
dated February 29, 1996 for the above named registrants.
The supplement filed herewith serves to disclose a change to an investment
policy of the Northstar Balance Sheet Opportunities Fund, a change to an
investment policy of the Northstar Strategic Income Fund, and the addition of a
new investment policy of the Northstar Strategic Income Fund.
Should you have any questions regarding this submission, please contact the
undersigned at (203)863-6216.
Sincerely,
STEPHANIE L. BECKNER
Stephanie L. Beckner
cc: Distribution
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THE NORTHSTAR FUNDS
Prospectus Supplement dated
October 30, 1996 to Prospectus dated
February 29, 1996
THE FOLLOWING INFORMATION SUPPLEMENTS OR REPLACES THE INFORMATION CONTAINED IN
THE SECTION OF THE FUNDS' PROSPECTUS ENTITLED "INVESTMENT OBJECTIVES AND
POLICIES OF THE FUNDS":
At a meeting held on October 29, 1996, the Trustees of the Northstar Balance
Sheet Opportunities Fund approved an amendment to the Fund's investment policy
relating to investments in debt securities rated below investment grade.
Effective herewith, the limit on the percentage of the Fund's assets that may be
invested in such securities has been increased from 25% to 50%. Please refer to
page 17 of the Prospectus for a description of the risks associated with
investing in high yield securities.
At a meeting held on October 29, 1996, the Trustees of the Northstar Strategic
Income Fund approved an amendment to the Fund's investment policy relating to
minimum investment levels for the U.S. Government Securities Sector, High Yield
Sector, and International Sector. Effective herewith, the required minimum
allocation to the above noted sectors is removed. Please refer to pages 14
through 16 of the Prospectus for a description of the three sectors. Further ,
the Trustees of the Fund approved the addition of an investment policy that
allows the Fund to invest in investment grade corporate debt securities.
Effective herewith, the Fund may invest in investment grade corporate debt
securities.
