SUPPLEMENT TO PROSPECTUS 
                           FOR NORTH AMERICAN FUNDS
                              Dated March 1, 1999

     On March 9, 1999, the Board of Trustees approved the termination of J.P.
Morgan Investment Management, Inc. ("J.P. Morgan"), subadvisor to the
International Growth and Income Fund, effective as of the close of business on
March 31, 1999. The Board of Trustees has approved a new subadvisory agreement
with Morgan Stanley Dean Witter Investment Management Inc. ("MSDW"), whereby
MSDW will succeed J.P. Morgan as subadvisor to the International Growth and
Income Fund. effective on April 1, 1999. There will be no change in the
management fee paid by the Fund to CypressTree Asset Management Corporation,
Inc. ("CAM"), the Fund's investment advisor, or in the subadvisory fee paid by
CAM. The Trustees also approved changing the Fund's name to International Equity
Fund effective April 1, 1999.


     On March 9, 1999, the Board of Trustees approved the termination of T. Rowe
Price Associates, Inc. ("T. Rowe Price"), the subadvisor to the Equity-Income
Fund, effective as of the close of business of the Fund on March 31, 1999. The
Board of Trustees has approved an interim sub-advisory agreement with Global
Alliance Value Investors, Ltd. ("GAVIL"), an affiliate of CAM, whereby GAVIL
will succeed T. Rowe Price as subadvisor to the Equity-Income Fund for a period
not to exceed 120 days. There will be no change to the management fee paid by
the Fund to CAM or in the subadvisory fee paid to CAM during the term of the
interim agreement. The Board of Trustees has established May 12, 1999 as the
date for a meeting of shareholders of the Equity Income Fund to vote on a new
subadvisory agreement relating to GAVIL. If the new subadvisory agreement is
approved by shareholders, it will take effect on May 12, 1999. The new
subadvisory agreement will reduce the management fee paid to CAM by .05% across
all ranges of Fund assets and will reduce the subadvisory fee to be paid by CAM
to GAVIL to 50% of CAM's management fee.

The sentence appearing immediately above each bar chart in the summary section
of the Prospectus is changed to read:

          The bar chart and table provide an indication of risk by showing
          the variability of the Fund's historical returns.

The table appearing on pages 22 and 23 of the Prospectus is modified by changing
the three example numbers indicated below:
 
SMALL/MID CAP FUND      
           1 YEAR        Class C No redemption       $  336

GROWTH AND INCOME FUND    
           3 YEARS       Class C No redemption       $  642

BALANCED FUND        
          10 YEARS       Class C No redemption       $2,269