Supplement dated July 3, 2000 to the currently effective Prospectus and
     Statement of Additional Information of each of the funds listed below

STOCK FUNDS
- -----------
Kobrick Capital Fund
Kobrick Emerging  Growth Fund
Kobrick Growth Fund
Nvest Balanced Fund
Nvest Bullseye Fund
Nvest Capital Growth Fund
Nvest Equity Income Fund
Nvest Growth and Income Fund
Nvest Growth Fund
Nvest International Equity Fund
Nvest Star Advisers Fund
Nvest Star Small Cap Fund
Nvest Star Value Fund
Nvest Star Worldwide Fund

BOND FUNDS
- ----------
Nvest Bond Income Fund
Nvest Government Securities Fund
Nvest High Income Fund
Nvest Intermediate Term Tax Free Fund of California
Nvest Limited Term U.S. Government Fund
Nvest Massachusetts Tax Free Income Fund
Nvest Municipal Income Fund
Nvest Short Term Corporate Income Fund
Nvest Strategic Income Fund

MONEY MARKET FUNDS
- ------------------
Nvest Cash Management Trust - Money Market Series
Nvest Tax Exempt Money Market Trust

         Nvest, L.P., and its affiliated operating partnership, Nvest Companies,
L.P., have entered into an agreement for CDC Asset  Management to acquire all of
their  outstanding  partnership  units.  CDC Asset  Management is the investment
management arm of France's Caisse des Depots Group, which is a major diversified
financial institution.  Nvest will be renamed CDC Asset Management-North America
and it will continue to use the holding company structure. Nvest affiliates will
retain their  investment  independence,  brand names,  management  and operating
autonomy.  The transaction  will not affect daily operations of the Funds or the
investment   management   activities  of  the  Funds'  investment  advisers  and
sub-advisers.

     Certain Nvest affiliates,  namely,  Nvest Funds Management,  L.P.; Back Bay
Advisors, L.P.; Capital Growth Management Limited Partnership; Harris Associates
L.P.; Jurika & Voyles, L.P.; Kobrick Funds LLC; Loomis, Sayles & Company,  L.P.;
Vaughan,  Nelson,  Scarborough  &  McCullough,  L.P.;  and  Westpeak  Investment
Advisors,  L.P.  (collectively,  the  "Nvest  Affiliates")  serve as  investment
adviser or sub-adviser of the above-named funds.

         Consummation  of the  transaction  with CDC is  subject  to a number of
contingencies, including regulatory approvals and approval of the unitholders of
Nvest,  L.P.  and Nvest  Companies  L.P.  Under the rules for  mutual  funds the
transaction  may result in a change of  control  for the Nvest  Affiliates  and,
therefore,  an assignment  of the Funds'  investment  advisory and  sub-advisory
agreements with the Nvest Affiliates, which generally is not permitted under the
Investment Company Act of 1940.  Consequently,  it is anticipated that the Nvest
Affiliates  will  seek  approval  of new  agreements  from the  Funds'  Board of
Trustees  and  shareholders  prior  to  consummation  of  the  transaction.  The
transaction is expected to close in the fourth quarter of 2000.


                                                                     SP108-0600R