THE DLB FUND GROUP
DLB GLOBAL SMALL CAP FUND
DLB STEWART IVORY EMERGING MARKETS FUND
DLB STEWART IVORY INTERNATIONAL FUND
Supplement dated February 25, 2000 to Prospectus dated October 29, 1999
Babson-Stewart Ivory International ("BSII"), has informed The DLB Fund
Group (the "Trust") that the Board of Stewart Ivory (Holdings) Ltd. ("Stewart
Ivory"), has unanimously agreed to recommend to Stewart Ivory's shareholders to
accept an offer for Stewart Ivory's outstanding voting securities from an
affiliate of Colonial Ltd. ("Colonial"), an Australian financial services
company. Stewart Ivory is the indirect parent of Stewart Ivory & Company
(International) Ltd. ("International"), one of two general partners of BSII,
which is the sub- adviser to the DLB Global Small Cap Fund, the DLB Stewart
Ivory Emerging Markets Fund and the DLB Stewart Ivory International Fund (the
"Funds"). The acquisition by Colonial of Stewart Ivory's voting securities (the
"Acquisition") is expected to occur as early as March of this year. Colonial is
a global financial services company with approximately $55 billion in assets
under management and approximately $3.7 billion in total stockholders' equity.
Consummation of the Acquisition, which is subject to a number of
conditions, including regulatory approvals in the United Kingdom, will result in
the termination of the sub-advisory agreements between David L. Babson and
Company Incorporated ("Babson"), the investment manager to each series of the
Trust, and BSII with respect to each of the Funds. It is expected that the
Trustees of The DLB Fund Group will meet before completion of the Acquisition to
consider the approval of interim sub-advisory agreements between BSII and Babson
and will meet after completion of the Acquisition to consider the approval of
new sub-advisory agreements between BSII and Babson. Both the interim and new
sub-advisory agreements between BSII and Babson are expected to be substantially
similar to the current agreements.
