PROSPECTUS SUPPLEMENT
THE DLB FUND GROUP
DLB GLOBAL SMALL CAPITALIZATION FUND
DLB STEWART IVORY EMERGING MARKETS FUND
DLB STEWART IVORY INTERNATIONAL FUND
Supplement dated May 3, 2000 to Prospectus dated April 28, 2000
Babson-Stewart Ivory International ("BSII") has informed The DLB Fund
Group (the "Trust") that Colonial Limited ("Colonial") has agreed to merge with
The Commonwealth Bank of Australia ("Commonwealth Bank"). Colonial 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 Capitalization Fund, the DLB Stewart Ivory Emerging
Markets Fund and the DLB Stewart Ivory International Fund, (the "Funds"). The
acquisition by Commonwealth Bank of Colonial's voting securities (the
"Acquisition") is expected to occur on or after June 13, 2000.
Consummation of the Acquisition, which is subject to a number of
conditions, including shareholder approval and regulatory and judicial approvals
in Australia, 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 both the interim
sub-advisory agreements and 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.
