FREMONT MUTUAL FUNDS

                         Supplement dated June 28, 2002
                                       to
            Statement of Additional Information dated March 1, 2002

INFLATION-LINKED SECURITIES

     To the extent  they may invest in  fixed-income  securities,  the Funds may
invest  in  inflation-linked  bonds,  which  are  issued  by the  United  States
government  and  foreign  governments  with  a  nominal  return  indexed  to the
inflation rate in prices. Governments that issue inflation-indexed bonds may use
different  conventions  for purposes of  structuring  their bonds and  different
inflation  factors,  with the same underlying  principal of linking real returns
and inflation.

     For purposes of understanding, a United States TIPS bond will be used as an
example of how inflation-linked bonds work. Inflation-linked bonds, like nominal
bonds,   pay  coupons  on  a  principal   amount.   For  U.S.   TIPS,  and  most
inflation-linked bonds, the value of the principal is adjusted for inflation. In
the United  States the index used to  measure  inflation  is the  non-seasonally
adjusted  U.S.  City  Average  All  Items  Consumer  Price  Index  for All Urban
Consumers ("CPI-U").  Interest payments are paid every six months, and are equal
to a fixed  percentage of the  inflation-adjusted  value of the  principal.  The
final  payment of principal  of the security  will not be less than the original
par amount of the security at issuance.

     The  principal  of  the   inflation-linked   security  is  indexed  to  the
non-seasonally  adjusted  CPI-U. To calculate the  inflation-adjusted  principal
value for a particular valuation date, the value of the principal at issuance is
multiplied by the index ratio applicable to that valuation date. The index ratio
for any date is the ratio of the reference  CPI  applicable to such date, to the
reference CPI applicable to the original issue date.  Semiannual coupon interest
is determined by multiplying the inflation-adjusted principal amount by one-half
of the stated rate of interest on each interest payment date.

     Inflation-adjusted  principal  or the  original  par amount,  whichever  is
larger,  is paid on the maturity  date as specified in the  applicable  offering
announcement.  If at maturity the inflation-adjusted  principal is less than the
original  principal  value of the  security,  an  additional  amount  is paid at
maturity   so  that  the   additional   amount   plus   the   inflation-adjusted
principal.equals the original principal amount. Some inflation-linked securities
may be  stripped  into  principal  and  interest  components.  In the  case of a
stripped security,  the holder of the stripped principal component would receive
this additional  amount. The final interest payment,  however,  will be based on
the final inflation-adjusted principal value, not the original par amount.

     If a Fund invests in U.S. Treasury inflation-linked  securities, it will be
required to treat as original  issue  discount,  any  increase in the  principal
amount of the securities that occurs during the course of its taxable year. If a
Fund  purchases  such  inflation-linked  securities  that are issued in stripped
form,  either as  stripped  bonds or  coupons,  it will be  treated as if it had
purchased  a newly  issued  debt  instrument  having  original  issue  discount.
Generally, the original issue discount equals the difference between the "stated
redemption  price at maturity" of the  obligation and its "issue price" as those
terms are defined in the Code. A Fund holding an obligation  with original issue
discount is required  to accrue as  ordinary  income a portion of such  original
issue  discount  even though it receives no cash  currently as interest  payment
corresponding to the amount of the original issue discount. Because each Fund is
required to distribute substantially all of its net investment income (including
accrued original issue discount) in order to be taxed as a regulated  investment
company,  it may be required to distribute an amount greater than the total cash
income  it  actually  receives.  Accordingly,  in  order  to make  the  required
distributions, a Fund may be required to borrow or liquidate securities.