1838 INVESTMENT ADVISORS FUNDS
Supplement Dated July 22, 1998
to the current Prospectus dated March 1, 1998
of the following 1838 Investment Advisors Funds:
1838 International Equity Fund
1838 Small Cap Equity Fund
1838 Fixed Income Fund
The following replaces and supersedes any contrary information in the
Prospectus:
Management of the Fund
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At a Special Meeting of Shareholders held on July 22, 1998, shareholders of
each of the above-referenced Funds ("Funds") approved a new Investment Advisory
Agreement with 1838 Investment Advisors, Inc. ("1838 Inc."). The new Investment
Advisory Agreements will become effective upon the completion of the merger (the
"Merger") between 1838 Inc. and MBIA, Inc. ("MBIA"), which is expected to occur
on July 31, 1998. 1838 Inc. is the parent company of 1838 Investment Advisors,
L.P. ("1838 L.P."), which currently has Investment Advisory Agreements with each
of the Funds. The Merger will result in a change of control of 1838 Inc., and
therefore, 1838 L.P., under the Investment Company Act of 1940, as amended. Such
a change in control will trigger the automatic termination of 1838 L.P.'s
Investment Advisory Agreements with each of the Funds. Thus, shareholder
approval of the new Investment Advisory Agreements with 1838 Inc. was necessary
so that the Agreements can become effective at the close of the Merger.
As a result of the Merger, 1838 Inc. will become a direct, wholly-owned
subsidiary of MBIA. Upon the completion of the Merger, the investment manager
for each of the Funds will be 1838 Inc., the corporate successor to 1838 L.P.
Under the new Investment Advisory Agreements, 1838 Inc. will be paid at the
same annual fee rates and on the same terms as was 1838 L.P. under the previous
Investment Advisory Agreements. In addition, the investment approach and
operation of each Fund will remain substantially unchanged.
MBIA, a Connecticut corporation, with headquarters in Armonk, New York, is
an insurer of municipal bonds and structured finance transactions. MBIA also
provides investment management services to the public sector.
Portfolio Manager - 1838 Fixed Income Fund
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Effective August 1, 1998, Clifford D. Corso will be principally responsible
for the day-to-day management of 1838 Fixed Income Fund's portfolio of
securities. Following the Merger, Mr. Corso will be Vice President, Portfolio
Manager and Head of Fixed Income Trading at
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1838 Inc. Mr. Corso currently is Vice President and Senior Portfolio Manager at
MBIA Capital Management Corp. (since 1994). From 1992 to 1994, Mr. Corso was
Vice President and Co-head of Fixed Income Trading at Shields Alliance.
Independent Accountants
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Effective July 1, 1998, Coopers & Lybrand L.L.P., the independent
accountant for 1838 Investment Advisors Funds (the "Trust"), combined its
business with that of Price Waterhouse LLP. The resulting entity that will
continue to serve as the Trust's independent accountant is
PricewaterhouseCoopers LLP. All services provided to the Trust under the
contract with Coopers & Lybrand L.L.P. approved by the Trust's Board of Trustees
on December 16, 1997 for the fiscal year ending October 31, 1998 will remain the
same with PricewaterhouseCoopers LLP. The Board will consider whether to retain
PricewaterhouseCoopers LLP as independent accountant for the Trust for the
fiscal year ending October 31, 1999, and annually will continue to consider
whether to retain the services of PricewaterhouseCoopers LLP, or those of
another firm.
Custodian
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Effective July 22, 1998, the custodian for each of the Funds will be
CoreStates Bank, N.A., 530 Walnut Street, Philadelphia, PA 19101.
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