Rule 497 (e)
Reg. Nos. 33-78420
811-8496
FUNDS IV TRUST
CASH RESERVE MONEY MARKET FUND
SHORT-TERM TREASURY INCOME FUND
BOND INCOME FUND
INTERMEDIATE BOND INCOME FUND
STOCK APPRECIATION FUND
VALUE STOCK APPRECIATION FUND
AGGRESSIVE STOCK APPRECIATION FUND
SUPPLEMENT DATED JUNE 18, 1996
TO PROSPECTUS DATED JANUARY 31, 1996
The following Supplement is provided to update and should
be read in conjunction with the information provided in the
Prospectus.
At a Meeting held on May 10, 1996, the Board of
Trustees of Funds IV Trust (the "Trust") approved an Agreement
and Plan of Reorganization between Cash Reserve Money Market
Fund, Bond Income Fund, Intermediate Bond Income Fund, Stock
Appreciation Fund, Value Stock Appreciation Fund and Aggressive
Stock Appreciation Fund, (together, the "Merging Funds") and
corresponding portfolios of The Pilot Funds. The Pilot Funds are
managed by Boatmen's Trust Company, an affiliate of the Merging
Funds' investment adviser, (each, a "Pilot Fund"). The Pilot
Fund corresponding to each Merging Fund is as follows:
Merging Fund Corresponding Pilot Fund
Cash Reserve Money Market Fund Pilot Short-Term Diversified
Assets Fund
Bond Income Fund Pilot Diversified Bond
Income Fund
Intermediate Bond Income Fund Pilot Diversified Bond Income
Fund
Stock Appreciation Fund Pilot Growth and Income
Fund
Value Stock Appreciation Fund Pilot Growth and Income Fund
Aggressive Stock Appreciation Fund Pilot Growth Fund
The Agreement and Plan of Reorganization provides for
the transfer of substantially all assets and stated liabilities
of each aforementioned Merging Fund in exchange for shares of the
corresponding Pilot Fund, followed by distribution of the Pilot
Shares class of shares of the Pilot Fund to the Merging Fund's
shareholders. Each reorganization has been structured as a tax
free transaction and is subject to the satisfaction of various
conditions, including the approval of shareholders of the Merging
Fund; however each reorganization is a separate transaction and
is not contingent upon the approval or consummation of any other
transaction.
The Trustees of the Trust approved the Agreement and
Plan of Reorganization and recommended that the Agreement and
Plan of Reorganization be submitted to shareholders of each
Merging Fund for their approval. The Trustees of The Pilot Funds
have also approved the Agreement and Plan of Reorganization and
no approval is necessary from the shareholders of The Pilot
Funds. Shareholders of each Merging Fund will have the right to
vote on the Agreement and Plan of Reorganization at a
shareholders' meeting to be held in the third quarter of this
year. Prior to the shareholders' meeting, shareholders of the
Merging Funds will receive a proxy statement/registration
statement describing the proposed reorganizations and The Pilot
Funds. It is anticipated that, upon satisfaction of the
applicable conditions, the reorganizations will be consummated
during the fall of 1996.
At the May 10, 1996 Meeting, the Board of Trustees of the
Trust also voted to liquidate the Short-Term Treasury Income Fund
(the "Liquidating Fund"), pursuant to a Plan of Liquidation, which
is subject to the satisfaction of certain conditions, including
approval of the shareholders of the Liquidating Fund. Upon
liquidation, the assets of the Liquidating Fund will be sold, and
the proceeds distributed to shareholders. Effective May 11, 1996,
no new subscriptions to the Liquidating Fund will be accepted.
The Trustees of the Trust approved the Plan of Liquidation and
recommended that the Plan of Liquidation be submitted to
Liquidating Fund shareholders for their approval. Liquidating Fund
shareholders will have the right to vote on the Plan of
Liquidation. Shareholders of the Liquidating Fund will be sent
additional information in anticipation of a shareholders' meeting
to be held during the third quarter of this year. It is
anticipated that, upon satisfaction of the applicable conditions,
the liquidation will be consummated during the fall of 1996 in
advance of the reorganization transactions.
Finally, Stuart Hopkins has replaced Paul Worth as
Portfolio Manager of the Stock Appreciation Fund and Aggressive
Stock Appreciation Fund. Mr. Hopkins currently manages the Value
Stock Appreciation Fund.
