497 1 l11404ae497.txt AMSOUTH FUNDS 497 AMSOUTH FUNDS SUPPLEMENT DATED JANUARY 12, 2005 TO THE CLASS A AND B SHARES PROSPECTUS DATED DECEMBER 1, 2004 THIS SUPPLEMENT PROVIDES THE FOLLOWING AMENDED INFORMATION AND SUPERSEDES ANY INFORMATION TO THE CONTRARY IN THE CLASS A AND B SHARES PROSPECTUS: THE INDIRECT EXPENSES AND THE EXPENSE EXAMPLE FOR THE AMSOUTH STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO STATED ON PAGE 38 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: AMSOUTH STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO CLASS A SHARES* 2.04% CLASS B SHARES* 2.78%
*Certain expenses for each of the Underlying Funds are limited by the Advisor. Taking into account the fee waivers and expense reimbursements for the Underlying Funds and the AmSouth Strategic Portfolios: Aggressive Growth Portfolio, total expenses for each class are: Class A Shares, 1.59% and Class B Shares, 2.33%. Any fee waiver or expense reimbursement arrangement is voluntary and may be discontinued at any time. Actual expenses will differ depending on the actual allocation of investments in the Underlying Funds in effect from time to time. The Underlying Funds are described elsewhere in this Prospectus. EXPENSE EXAMPLE
1 YEAR 3 YEARS 5 YEARS 10 YEARS CLASS A SHARES $746 $1,154 $1,588 $2,789 CLASS B SHARES Assuming redemption $781 $1,162 $1,669 $2,932 Assuming no Redemption $281 $862 $1,469 $2,932
THE INDIRECT EXPENSES AND THE EXPENSE EXAMPLE FOR THE AMSOUTH STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO STATED ON PAGE 42 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: AMSOUTH STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO CLASS A SHARES* 1.92% CLASS B SHARES* 2.66%
*Certain expenses for each of the Underlying Funds are limited by the Advisor. Taking into account the fee waivers and expense reimbursements for the Underlying Funds and the AmSouth Strategic Portfolios: Growth Portfolio, total expenses for each class are: Class A Shares, 1.49% and Class B Shares, 2.22%. Any fee waiver or expense reimbursement arrangement is voluntary and may be discontinued at any time. Actual expenses will differ depending on the actual allocation of investments in the Underlying Funds in effect from time to time. The Underlying Funds are described elsewhere in this Prospectus. EXPENSE EXAMPLE
1 YEAR 3 YEARS 5 YEARS 10 YEARS CLASS A SHARES $734 $1,120 $1,530 $2,670 CLASS B SHARES Assuming redemption $769 $1,126 $1,610 $2,814 Assuming no Redemption $269 $826 $1,410 $2,814
THE INDIRECT EXPENSES AND THE EXPENSE EXAMPLE FOR THE AMSOUTH STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO STATED ON PAGE 46 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: AMSOUTH STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO CLASS A SHARES* 1.81% CLASS B SHARES* 2.56%
*Certain expenses for each of the Underlying Funds are limited by the Advisor. Taking into account the fee waivers and expense reimbursements for the Underlying Funds and the AmSouth Strategic Portfolios: Growth and Income Portfolio, total expenses for each class are: Class A Shares, 1.48% and Class B Shares, 2.23%. Any fee waiver or expense reimbursement arrangement is voluntary and may be discontinued at any time. Actual expenses will differ depending on the actual allocation of investments in the Underlying Funds in effect from time to time. The Underlying Funds are described elsewhere in this Prospectus. EXPENSE EXAMPLE
1 YEAR 3 YEARS 5 YEARS 10 YEARS CLASS A SHARES $724 $1,088 $1,476 $2,560 CLASS B SHARES Assuming redemption $759 $1,096 $1,560 $2,712 Assuming no Redemption $259 $796 $1,360 $2,712
THE INDIRECT EXPENSES AND THE EXPENSE EXAMPLE FOR THE AMSOUTH STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO STATED ON PAGE 50 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: AMSOUTH STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO CLASS A SHARES* 1.94% CLASS B SHARES* 2.68%
*Certain expenses for each of the Underlying Funds are limited by the Advisor. Taking into account the fee waivers and expense reimbursements for the Underlying Funds and the AmSouth Strategic Portfolios: Moderate Growth and Income Portfolio, total expenses for each class are: Class A Shares, 1.51% and Class B Shares, 2.25%. Any fee waiver or expense reimbursement arrangement is voluntary and may be discontinued at any time. Actual expenses will differ depending on the actual allocation of investments in the Underlying Funds in effect from time to time. The Underlying Funds are described elsewhere in this Prospectus. EXPENSE EXAMPLE
1 YEAR 3 YEARS 5 YEARS 10 YEARS CLASS A SHARES $736 $1,126 $1,539 $2,690 CLASS B SHARES Assuming redemption $771 $1,132 $1,620 $2,834 Assuming no Redemption $271 $832 $1,420 $2,834
THE FEES AND EXPENSES TABLE AND EXPENSE EXAMPLE FOR THE AMSOUTH LIMITED TERM BOND FUND STATED ON PAGE 57 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: FEES AND EXPENSES
SHAREHOLDER TRANSACTION EXPENSES CLASS A CLASS B (EXPENSES PAID BY YOU DIRECTLY)(1) SHARES SHARES Maximum Sales Charge (Load) on Purchases 2.00%(2) None Maximum Deferred Sales Charge (Load) None 5.00%(3) Redemption Fee(4) 2.00% 2.00%
ANNUAL FUND OPERATING EXPENSES CLASS A CLASS B (FEES PAID FROM FUND ASSETS) SHARES SHARES Management Fee 0.50% 0.50% Distribution and/or Service (12b-1) Fee None 0.75% Other Expenses(5) 0.50% 0.50% Total Fund Operating Expenses(5) 1.00% 1.75%
(1) AmSouth Bank or other financial institutions may charge their customers account fees for automatic investment and other cash management services provided in connection with investment in the Fund. (2) Sales charges may be reduced depending upon the amount invested or, in certain circumstances, waived. Class A Shares bought as part of an investment of $1 million or more are not subject to an initial sales charge, but may be charged a CDSC of 1.00% if sold within one year of purchase. See "Distribution Arrangements." (3) For Class B Shares purchased prior to the combination of AmSouth Funds with ISG Funds, the CDSC on such Class B Shares held continuously declines over six years, starting with year one and ending in year seven from: 4%, 3%, 3%, 2%, 2%, 1%. For all other Class B Shares held continuously, the CDSC declines over six years, starting with year one and ending in year seven from: 5%, 4%, 3%, 3%, 2%, 1%. Approximately eight years after purchase (seven years in the case of ISG Shares acquired in the combination), Class B Shares automatically convert to Class A Shares. (4) To discourage short-term trading, a redemption fee of 2.00% will be charged on sales or exchanges of Class A Shares and Class B Shares made within 30 days of the date of purchase. See "Redemption Fee." A wire transfer fee of $7.00 will be deducted from the amount of your redemption of Class A Shares and Class B Shares if you request a wire transfer. (5) Other expenses are being limited to 0.48% for Class A Shares and 0.48% for Class B Shares. Total expenses after fee waivers and expense reimbursements for each class are: Class A Shares, 0.98%; and Class B Shares, 1.73%. Any fee waiver or expense reimbursement arrangement is voluntary and may be discontinued at any time. EXPENSE EXAMPLE
1 YEAR 3 YEARS 5 YEARS 10 YEARS CLASS A SHARES $300 $512 $741 $1,400 CLASS B SHARES Assuming redemption $678 $851 $1,149 $1,864 Assuming no Redemption $178 $551 $949 $1,864
THE SECOND SENTENCE OF THE FIRST PARAGRAPH OF THE DESCRIPTION OF THE INVESTMENT ADVISOR ON PAGE 89 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: As of September 30, 2004, AAMI had over $9.7 billion in assets under management. SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUS FOR FUTURE REFERENCE. AMSOUTH FUNDS SUPPLEMENT DATED JANUARY 12, 2005 TO THE CLASS I SHARES PROSPECTUS DATED DECEMBER 1, 2004 THIS SUPPLEMENT PROVIDES THE FOLLOWING AMENDED INFORMATION AND SUPERSEDES ANY INFORMATION TO THE CONTRARY IN THE CLASS I SHARES PROSPECTUS: THE INDIRECT EXPENSES AND THE EXPENSE EXAMPLE FOR THE AMSOUTH STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO STATED ON PAGE 38 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: AMSOUTH STRATEGIC PORTFOLIOS: AGGRESSIVE GROWTH PORTFOLIO CLASS I SHARES* 1.94%
*Certain expenses for each of the Underlying Funds are limited by the Advisor. Taking into account the fee waivers and expense reimbursements for the Underlying Funds and the AmSouth Strategic Portfolios: Aggressive Growth Portfolio, total expenses for Class I Shares are 1.54%. Any fee waiver or expense reimbursement arrangement is voluntary and may be discontinued at any time. Actual expenses will differ depending on the actual allocation of investments in the Underlying Funds in effect from time to time. The Underlying Funds are described elsewhere in this Prospectus. EXPENSE EXAMPLE
1 YEAR 3 YEARS 5 YEARS 10 YEARS CLASS I SHARES $197 $609 $1,047 $2,264
THE INDIRECT EXPENSES AND THE EXPENSE EXAMPLE FOR THE AMSOUTH STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO STATED ON PAGE 42 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: AMSOUTH STRATEGIC PORTFOLIOS: GROWTH PORTFOLIO CLASS I SHARES* 1.82%
*Certain expenses for each of the Underlying Funds are limited by the Advisor. Taking into account the fee waivers and expense reimbursements for the Underlying Funds and the AmSouth Strategic Portfolios: Growth Portfolio, total expenses for Class I Shares are 1.43%. Any fee waiver or expense reimbursement arrangement is voluntary and may be discontinued at any time. Actual expenses will differ depending on the actual allocation of investments in the Underlying Funds in effect from time to time. The Underlying Funds are described elsewhere in this Prospectus. EXPENSE EXAMPLE
1 YEAR 3 YEARS 5 YEARS 10 YEARS CLASS I SHARES $185 $573 $985 $2,137
THE INDIRECT EXPENSES AND THE EXPENSE EXAMPLE FOR THE AMSOUTH STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO STATED ON PAGE 46 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: AMSOUTH STRATEGIC PORTFOLIOS: GROWTH AND INCOME PORTFOLIO CLASS I SHARES* 1.71%
*Certain expenses for each of the Underlying Funds are limited by the Advisor. Taking into account the fee waivers and expense reimbursements for the Underlying Funds and the AmSouth Strategic Portfolios: Growth and Income Portfolio, total expenses for Class I Shares are 1.43%. Any fee waiver or expense reimbursement arrangement is voluntary and may be discontinued at any time. Actual expenses will differ depending on the actual allocation of investments in the Underlying Funds in effect from time to time. The Underlying Funds are described elsewhere in this Prospectus. EXPENSE EXAMPLE
1 YEAR 3 YEARS 5 YEARS 10 YEARS CLASS I SHARES $174 $539 $928 $2,019
THE INDIRECT EXPENSES AND THE EXPENSE EXAMPLE FOR THE AMSOUTH STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO STATED ON PAGE 50 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: AMSOUTH STRATEGIC PORTFOLIOS: MODERATE GROWTH AND INCOME PORTFOLIO CLASS I SHARES* 1.84%
*Certain expenses for each of the Underlying Funds are limited by the Advisor. Taking into account the fee waivers and expense reimbursements for the Underlying Funds and the AmSouth Strategic Portfolios: Moderate Growth and Income Portfolio, total expenses for Class I Shares are 1.46%. Any fee waiver or expense reimbursement arrangement is voluntary and may be discontinued at any time. Actual expenses will differ depending on the actual allocation of investments in the Underlying Funds in effect from time to time. The Underlying Funds are described elsewhere in this Prospectus. EXPENSE EXAMPLE
1 YEAR 3 YEARS 5 YEARS 10 YEARS CLASS I SHARES $187 $579 $995 $2,159
THE FIRST PARAGRAPH OF THE DESCRIPTION OF THE HIGH QUALITY BOND FUND ON PAGE 84 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: Under normal circumstances, the Fund will invest at least 80% of its net assets in bonds. This policy will not change without 60 days' advance notice to shareholders. For the purpose of this policy, net assets include net assets plus borrowings for investment purposes. The Fund's investments include securities issued by GNMA, which are supported by the full faith and credit of the U.S. government, and securities issued by FNMA, FHLMC and FHLBs, which are supported by the right of the issuer to borrow from the U.S. Treasury. The Fund may hold up to 20% of its assets in cash and cash equivalents. "Cash equivalents" are short-term, interest-bearing instruments or deposits known as money market instruments. THE SECOND SENTENCE OF THE FIRST PARAGRAPH OF THE DESCRIPTION OF THE INVESTMENT ADVISOR ON PAGE 89 OF THE PROSPECTUS IS DELETED IN ITS ENTIRETY AND REPLACED WITH THE FOLLOWING: As of September 30, 2004, AAMI had over $9.7 billion in assets under management. SHAREHOLDERS SHOULD RETAIN THIS SUPPLEMENT WITH THE PROSPECTUS FOR FUTURE REFERENCE.