Rule 497(e)
                                                           Prospectus Supplement

                               
                       Mutual Fund Variable Annuity Trust

                       
                     Supplement Dated December 18, 1995 to
             Prospectuses dated: March 1, 1995; June 19, 1995; May
                                    1, 1995
                    October 28, 1994; and September 29, 1995

In August 1995, The Chase Manhattan Corporation and Chemical Banking Corporation
announced  that they had  entered  into an  Agreement  and Plan of  Merger  (the
"Merger Agreement") pursuant to which The Chase Manhattan Corporation will merge
with  Chemical  (the "Holding  Company  Merger").  Under the terms of the Merger
Agreement,  Chemical will be the surviving  corporation  in the Holding  Company
Merger and will continue its corporate  existence  under  Delaware law under the
name "The  Chase  Manhattan  Corporation".  Subsequent  to the  Holding  Company
Merger, The Chase Manhattan Bank, N.A. (the "Adviser"),  will be merged with and
into Chemical Bank, a New York banking corporation (the "Bank Merger"). Both the
Holding  Company  Merger  and Bank  Merger are  subject  to certain  conditions,
including certain regulatory  approvals.  In connection with the mergers,  funds
currently  affiliated  with Chemical  (the "Hanover  Funds") will be merged into
certain  existing or  newly-created  series funds of Mutual Fund Group or Mutual
Fund Trust, subject to approval by shareholders of the Hanover Funds.

As required by the Investment  Company Act of 1940, as amended (the "1940 Act"),
the current advisory agreement (the "Current  Agreement")  between each Fund and
the Adviser  provides for its automatic  termination  upon its  "assignment" (as
defined in the 1940 Act).  Consummation  of the Holding  Company  Merger and the
Bank Merger may be deemed to result in an assignment  of each Current  Agreement
and,  consequently,  to terminate each Current  Agreement in accordance with its
terms.  After the Holding Company Merger, the Adviser (or the successor thereto)
will continue rendering services to the Funds under anticipated exemptive relief
from the  Securities and Exchange  Commission and advisory  services will not be
impaired  thereby.  Shareholder  approval  of new  advisory  agreements  will be
solicited in the first quarter of 1996.