June 5, 2000
THE UNIFIED FUNDS
The Starwood Strategic Fund
Supplement to Prospectus
Dated February 1, 2000
The description of the Starwood Strategic Fund's principal strategies
on page 3 of the Prospectus is supplemented as follows:
While the Fund invests primarily in equity securities of seasoned, financially
strong companies, investors should be aware that the Fund's portfolio may
include some companies that would not be considered seasoned or financially
strong and that some of the companies in the Fund's portfolio may not have all
of the characteristics listed in the second sentence under "Principal
Strategies." Investors should also be aware that, while it is anticipated the
Fund will diversify its investments across a range of industries and industry
sectors, certain sectors are likely to be overweighted compared to others
because the Fund's investment adviser seeks the best growth opportunities
regardless of sector. The Fund may, for example, be overweighted at times in the
technology sector. The sectors in which the Fund may be overweighted will vary
at different points in the economic cycle.
The description of the Starwood Strategic Fund's principal risks on
page 3 of the Prospectus is revised to add the following:
Sector Risk. As of the date of this Supplement to the Prospectus, a significant
portion of the Fund's assets is invested in the technology sector, including
telecommunications. A weakness in this sector could result in significant losses
to the Fund. Technology companies may be significantly affected by falling
prices and profits, and intense competition. In addition, the rate of
technological change is generally higher than other companies, often requiring
extensive and sustained investment in research and development, and exposing
such companies to the risk of rapid product obsolescence. Telecommunications
companies are also subject to changing government regulations that may limit
profits and restrict services offered. Changes in governmental policies, such as
telephone and cable regulations and anti-trust enforcement, may have a material
effect on the products and services of these companies. It is likely that some
of today's technology companies will not exist in the future. The price of many
technology stocks has risen based on projections of future earnings and company
growth. If a company does not perform as expected, the price of the stock could
decline significantly. Many technology companies are currently operating at a
loss and may never be profitable.
This supplement and the Prospectus dated February 1, 2000 provide the
information a prospective investor ought to know before investing and should be
retained for future reference. A Statement of Additional Information has been
filed with the Security and Exchange Commission dated February 1, 2000, which is
incorporated herein by reference and can be obtained without charge by calling
the Funds at 1-800-408-4682.
