Registration No. 33-94412
Rule 497(e)
SUPPLEMENT DATED JUNE 28, 1996 TO THE STATEMENT OF ADDITIONAL
INFORMATION DATED MARCH 29, 1996 OF TRANS ADVISER FUNDS, INC.
The second paragraph under the description of Portfolio Accounting on page 31 is
replaced with the following paragraph:
Under its Agreement, FFC prepares and maintains books and records of each Fund
on behalf of the Company as required under the 1940 Act, calculates the net
asset value per share of each Fund and dividends and capital gain distributions
and prepares periodic reports to shareholders and the Securities and Exchange
Commission. For its services, FFC receives from the Company with respect to each
Fund a fee of $36,000 per year plus surchages of $6,000 to $24,000 for specified
asset levels. FFC is paid additional surchages of $12,000 per year for tax-free
money market funds and for each of the following: a portfolio with more than a
specified number of securities positions and/or international positions;
investments in derivative instruments; percentages of assets invested in asset
backed securities; and a monthly portfolio turnover rate of 10% or greater. FFC
is required to use its best judgment and efforts in rendering fund accounting
services and is not liable to the Company for any action or inaction in the
absence of bad faith, willful misconduct or gross negligence. FFC is not
responsible or liable for any failure or delay in performance of its fund
accounting obligations arising out of or caused, directly or indirectly, by
circumstances beyond its reasonable control and the Company has agreed to
indemnify and hold harmless FFC, its employees, agents, officers and directors
against and from any and all claims, demands, actions, suits, judgments,
liabilities, losses, damages, costs, charges, counsel fees and other expenses of
every nature and character arising out of or in any way related to FFC's actions
taken or failure to act with respect to a Fund or based, if applicable, upon
information, instructions or requests with respect to a Fund given or made to
FFC by an officer of the Company duly authorized. This indemnification does not
apply to FFC's actions taken or failure to act in cases of FFC's own bad faith,
willful misconduct or gross negligence.
