497 1 kl_05043.txt AMENDED SUPPLEMENT TO PROSPECTUS The Bear Stearns Funds Emerging Markets Debt Portfolio Class A, B and C Shares Prospectus dated July 28, 2000 Prospectus Supplement Dated May 25, 2001 The section entitled "Fees and Expenses" on page 17 is replaced with the following: This table describes the fees and expenses that you may pay if you buy and hold shares of the EMD Portfolio.
Shareholder Fees (paid directly from your Class A Class B Class C investment)* -------------------------------------------------------------------------------- Maximum sales charge (load) imposed on purchases 4.50% None None (as a percentage of offering price) -------------------------------------------------------------------------------- Maximum deferred sales charge (load) (as a percentage of the lower of purchase or sale price) None** 5.00%(1) 1.00% -------------------------------------------------------------------------------- Sales charge imposed on reinvested dividends None None None -------------------------------------------------------------------------------- Redemption fees*** (as a percentage of total redemption proceeds) 1.00% 1.00% 1.00% -------------------------------------------------------------------------------- Exchange fees None None None -------------------------------------------------------------------------------- Annual Portfolio Operating Expenses (expenses that are deducted from Portfolio assets) -------------------------------------------------------------------------------- Management Fees(2) 1.00% 1.00% 1.00% -------------------------------------------------------------------------------- Distribution (12b-1) Fees 0.10% 0.75% 0.75% -------------------------------------------------------------------------------- Other Expenses (includes a 0.25% shareholder servicing fee) 1.76% 1.67% 1.66% ----- ----- ----- -------------------------------------------------------------------------------- Total Annual Portfolio Operating Expenses 2.86% 3.42% 3.41% -------------------------------------------------------------------------------- Fee Waiver and Expense Reimbursement (1.11)% (1.02)% (1.01)% ------- ------- ------- -------------------------------------------------------------------------------- Net Expenses(3) 1.75% 2.40% 2.40% ====== ===== ===== --------------------------------------------------------------------------------
* A broker or agent may charge additional fees on the purchase, sale or exchange of Portfolio shares. ** You will pay a CDSC of 1% of the lesser of purchase or sale price of your Class A shares if you sell them up to one year after the date of purchase if you purchased them at net asset value because you purchased $1 million or more of Class A shares. *** The redemption fee will apply to shares you purchase on or after June 1, 2001 and hold for 60 days or less. See the section entitled "Additional Information About Redemptions" for more information on when this fee will apply. Also, there is a transaction fee of $7.50 for wiring redemption proceeds. (1) The Class B deferred sales charge declines over time. See "How the Trust Calculates Sales Charges -- Class B Shares." BSF-S-003-001 (2) Management fees are based on the EMD Portfolio's average daily net assets at an annual rate of 1.00 % charged on assets up to $50 million, 0.85% charged on assets between $50 million and $100 million and 0.55% charged on assets above $100 million. (3) The Adviser has agreed to waive a portion of its fee and reimburse certain expenses until at least July 31, 2002, so that the EMD Portfolio's net expenses do not exceed the amounts indicated above. Under the section entitled "Additional Information About Redemptions", the following paragraph is inserted after the paragraph entitled "Automatic redemption; redemption in kind." on page 33: o Redemption Fees. Effective June 1, 2001, the EMD Portfolio will impose a redemption fee of 1.00% of the total redemption amount (calculated at market value) if you sell your shares 60 days or less after you purchase them. The redemption fee is paid directly to the EMD Portfolio, and is designed to offset brokerage commissions, market impact, and other costs associated with short-term trading. For purposes of determining whether the redemption fee applies, the shares that you have held the longest will be redeemed first. The redemption fee will only apply to shares you purchase on or after June 1, 2001. The redemption fee may not apply in certain circumstances, such as redemptions on certain omnibus accounts, including 401(k) plans, and in the event of shareholder death or disability. Please see the SAI for details. BSF-S-003-001