Recent developments have increased our understanding of the evolution of mu
tualistic associations between Epichloe endophytes and their grass hosts. M
ost of the asexual species appear to be interspecific hybrids. Although end
ophytes form compatible associations with their natural hosts, transfers to
other hosts elicit a range of incompatible reactions. Recently, the genes
involved in the synthesis of the secondary metabolites ergot alkaloids and
indole-diterpenes, which confer protective benefits on the association, hav
e been cloned.