RULE 497(e)
                                                       SECURITIES ACT OF 1933
                                                       2-63825



                     RCM INTERNATIONAL GROWTH EQUITY FUND A
                                   OFFERED BY:
                             RCM CAPITAL FUNDS, INC.
                        SUPPLEMENT DATED JANUARY  5, 1996
         TO COMBINED PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
                               DATED MAY 22, 1995


THE FOLLOWING INFORMATION SUPPLEMENTS AND SHOULD BE READ IN CONJUNCTION WITH THE
SECTION ENTITLED "THE INVESTMENT MANAGER" AT PAGE 22 OF THE COMBINED PROSPECTUS
AND STATEMENT OF ADDITIONAL INFORMATION:

In December 1995, the Fund's Investment Manager, RCM Capital Management, entered
into an Agreement of Purchase and Sale pursuant to which RCM Capital Management
will become an indirect owned wholly owned subsidiary of Dresdner Bank AG, a
German bank. It is expected that the day-to-day operations of the Investment
Manager will not be affected and that the individuals who are primarily
responsible for the management of the Fund's portfolio will remain the same. The
closing of the transaction is subject to a number of contingencies, including
the receipt of certain regulatory approvals. The transaction is currently
expected to close in mid-1996. Because the transaction will constitute an
"assignment" of the Fund's Management Agreement with the Investment Manager
under the Investment Company Act of 1940, and thus a termination of such
Management Agreement, the Fund will seek prior approval of a new management
agreement from the Fund's Board of Directors and shareholders prior to the
closing of the transaction. The terms of the new management agreement will be
substantially the same as those of the current Management Agreement, and the
transaction will be described in more detail in any proxy statement required to
be sent to shareholders.