1
 
   
Supplement to the
    
   
Seneca Fund Institutional Shares
    
   
Prospectus
    
   
dated March 1, 1996
    
 
   
The following information replaces the first paragraph in the section entitled
"Redemption of Shares" on page 36.
    
 
   
Each Fund will redeem its shares at the net asset value for the relevant class
next determined following receipt of a redemption request. Redemptions may be
made by mail or, if elected on the Trust's Client Registration Application (or
subsequently in writing), by telephone. Although no charge is generally made for
redemptions, when shares have been held for fewer than 90 days, a fee of 1% of
the amount redeemed will be assessed on a first-in-first-out basis. This amount
will be retained by the appropriate Fund and does not apply to the redemption or
exchange of shares acquired through reinvestment of dividends. The early
withdrawal fee is intended to protect long-term shareholders from the expenses
involved in frequent purchases and redemptions by short-term investors. Shares
may be worth more or less upon redemption than their purchase price, generally,
depending on the market value of the investment securities held by the
particular Fund at the time of redemption.
    
 
                                        2
   2
 
   
Supplement to the
    
   
Seneca Fund Administrative Shares
    
   
Prospectus
    
   
dated March 1, 1996
    
 
   
The following information replaces the first paragraph in the section entitled
"Redemption of Shares" on page 35.
    
 
   
Each Fund will redeem its shares at the net asset value for the relevant class
next determined following receipt of a redemption request. Redemptions may be
made by mail or, if elected on the Trust's Client Registration Application (or
subsequently in writing), by telephone. Although no charge is generally made for
redemptions, when shares have been held for fewer than 90 days, a fee of 1% of
the amount redeemed will be assessed on a first-in-first-out basis. This amount
will be retained by the appropriate Fund and does not apply to the redemption or
exchange of shares acquired through reinvestment of dividends. The early
withdrawal fee is intended to protect long-term shareholders from the expenses
involved in frequent purchases and redemptions by short-term investors. Shares
may be worth more or less upon redemption than their purchase price, generally,
depending on the market value of the investment securities held by the
particular Fund at the time of redemption.
    
 
                                        3