MONARCH FUNDS
                               Two Portland Square
                              Portland, Maine 04101

December 13, 2005

Dear Shareholder:

         On October 11, 2005, a proxy  statement for Daily Assets Cash Fund (the
"Fund") was mailed to all Fund shareholders  stating that a shareholder  meeting
(the  "Meeting")  would be held on November 1, 2005 to approve a new  investment
advisory agreement (the "New Agreement"). Due to insufficient votes, the Meeting
was  adjourned to December 7, 2005 and a Notice of  Adjournment  was sent to all
shareholders  who had not yet voted.  On  December  7th,  the Fund still did not
receive a  sufficient  amount of votes from  shareholders  and the  Meeting  was
adjourned to December 21, 2005. Please take a moment now and vote your shares so
that another adjournment and additional solicitation efforts will not be needed.

         YOU MAY CAST YOUR VOTE BY TELEPHONE BY CALLING TOLL-FREE (800) 690-6903
OR YOU CAN CAST YOUR VOTE BY MAIL BY SIGNING,  DATING AND  MAILING THE  ENCLOSED
PROXY CARD IN THE POSTAGE-PREPAID RETURN ENVELOPE PROVIDED.

         The New Agreement contains the same terms and conditions as the current
investment  advisory  agreement.  Shareholder  approval of the New  Agreement is
required as the owner of the Fund's  investment  adviser  intends to sell all of
its  ownership  interest in the adviser to Anthony R.  Fischer,  Jr., the Fund's
portfolio  manager  who has  managed  the Fund since its  inception  and Jack J.
Singer, Executive Director, Vice President, Secretary and Assistant Treasurer of
the adviser. The Board of Trustees of Monarch Funds unanimously approved the New
Agreement subject to the approval of the Fund's shareholders.

         Please do not  hesitate  to call the Fund's  transfer  agent  toll-free
(800) 754-8757 if you have any questions regarding this matter.  Representatives
are available to answer any questions you might have.

         Please  vote  your  shares  today  so  that  another   adjournment  and
additional  solicitation  efforts will not be needed. If you have already voted,
thank you very much.


                                            Sincerely,

                                            /s/ David M. Whitaker

                                            David M. Whitaker
                                            Secretary

Enclosures