THE JUMPER STRATEGIC ADVANTAGE FUND
SUPPLEMENT DATED March 10, 1999 To
PROSPECTUS DATED July 15, 1998
Effective March 10, 1999, The Jumper Strategic Advantage Fund began
offering two classes of shares. All shares outstanding prior to that date were
redesignated "Institutional Class" shares by the Board of Trustees. This
Supplement to the Prospectus provides information about the "Institutional
Class" and the "Investor Class" and describes the difference between the
classes. The expense information for the Investor Class and Institutional Class
shares is based on estimated amounts for the current fiscal year.
Replace the operating expense table on page 3 with the following:
Investor Class Institutional Class
Annual Fund Operating Expenses (as a percentage of average net assets)1
Management Fees..........................0.75%.....................0.75%
12b-1 Charges............................0.25%.....................none
Other Expenses 2 ........................0.00%.....................0.00%
Total Fund Operating Expenses 1..........1.00%.....................0.75%
1 The Fund's total operating expenses are equal to the management fee paid
to the Advisor (plus the 12b-1 charges, if applicable) because the Advisor pays
all operating expenses of the Fund except brokerage, taxes, interest, 12b-1
charges, fees and expenses of non-interested person trustees and extraordinary
expenses.
2 The Fund estimates that other expenses (fees and expenses of the
trustees who are not "interested persons" as defined in the Investment Company
Act) will be .00032 of 1% of average net assets for the first fiscal year.
The tables above are provided to assist an investor in understanding the direct
and indirect costs and expenses that an investor may incur as a shareholder in
the Fund.
Replace the expense example on page 3 with the following:
You would pay the following expenses on a $1,000 investment, assuming
(1) 5% annual return and (2) redemption at the end of each time period:
1 Year 3 Years
------ -------
Investor Class $10 $32
Institutional Class $ 8 $24
The Example above should not be considered a representation of future Fund
performance or expenses, both of which may vary.
Read the following in conjunction with the sections titled "The Fund" on page 4
and "Shareholder Rights" on page 17:
The Fund currently offers two classes of shares: "Institutional Class"
shares and "Investor Class" shares. The classes differ as follows: 1) Investor
Class shares pay 12b-1 expenses of 0.25%, and 2) each class may bear differing
amounts of certain class specific expenses.
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Replace the first paragraph of the section titled "How To Invest In The Fund" on
page 11 with the following:
Shares of the Fund are sold on a continuous basis, and you may invest any
amount you choose, as often as you wish, subject to the applicable minimum
initial investment. Investors choosing to purchase or redeem their shares
through a broker/dealer or other institution may be charged a fee by that
institution. Investors choosing to purchase or redeem shares directly from the
Fund will not incur charges on purchases or redemptions. To the extent
investments of individual investors are aggregated into an omnibus account
established by an investment advisor, broker or other intermediary, the account
minimums apply to the omnibus account, not to the account of the individual
investor.
The minimum initial investment for Investor Class shares is $5,000 ($2,000
for IRAs and other retirement plans). The minimum initial investment for
Institutional Class shares is $5 million. The minimum subsequent investment for
either Class is $100.
The Advisor may waive the minimum initial investment amount. The minimum
initial investment amount will be waived for the following investors:
o Banks, bank or broker-affiliated trust departments and savings and loan
associations, in their fiduciary capacity or for their own accounts. To the
extent permitted by regulatory authorities, a bank trust department may
charge fees to clients for whose account it purchases shares.
o Federal and state credit unions.
o Investors purchasing through a broker dealer or other financial institution
authorized by the Distributor to hold shares in an omnibus account.
Investors may be charged a fee by the broker/dealer or other financial
institution for this service.
o Investors purchasing through certain broker/dealer wrap fee investment
programs.
o Broker-dealers who have a sales agreement with the Distributor, and their
registered personnel and employees, including members of the immediate
families of such registered personnel and employees.
o Trustees, directors, officers and employees of the Trust, the Advisor and
service providers to the Trust, including members of the immediate family
of such individuals and employee benefit plans established by such
entities.
o Clients of the Advisor, including members of the immediate family of such
individuals.
When purchasing shares, specify which Class you are purchasing. All
purchase orders that fail to specify a Class will automatically be invested in
Investor Class shares. The differing expenses applicable to the different
classes of the Fund's shares may affect the performance of those classes.
Broker/dealers and others entitled to receive compensation for selling or
servicing Fund shares may receive more with respect to one class than another.
The Board of Trustees of the Trust does not anticipate that there will be any
conflicts among the interests of the holders of the different classes of Fund
shares. On an ongoing basis, the Board will consider whether any such conflict
exists and, if so, take appropriate action.
Add the following section:
DISTRIBUTION PLAN
The Investor Class has adopted a plan, pursuant to Rule 12b-1 under the
Investment Company Act of 1940 (the "Plan"), which permits the Fund to pay for
certain distribution and promotion expenses related to marketing Investor Class
shares. The expenses paid by the Fund pursuant to the Plan shall be determined
by the Trustees of the Trust, but in no event may such expenditures exceed in
any fiscal year 0.25% of the average daily net asset value of the Investor Class
shares. Payments for distribution activities may be made directly by the Fund,
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or the Fund's investment Advisor and distributor may pay such expenses and
obtain reimbursement from the Trust. Expenditures pursuant to the Plan and
related agreements will reduce current yield after expenses.
Under the Plan, the Fund may, directly or indirectly, engage in any
activities related to the distribution of Investor Class shares of the Fund
("Shares"), including without limitation the following: (a) payments, including
incentive compensation, to securities dealers or other financial intermediaries,
financial institutions, investment advisors and others that are engaged in the
sale of Shares, or that may be advising shareholders of the Trust regarding the
purchase, sale or retention of Shares; (b) expenses of maintaining personnel
(including personnel of organizations with which the Trust has entered into
agreements related to the Plans) who engage in or support distribution of
Shares; (c) costs of preparing, printing and distributing prospectuses and
statements of additional information and reports of the Fund for recipients
other than existing shareholders of the Fund; (d) costs of formulating and
implementing marketing and promotional activities, including, but not limited
to, sales seminars, direct mail promotions and television, radio, newspaper,
magazine and other mass media advertising; (e) costs of preparing, printing and
distributing sales literature; (f) costs of obtaining such information, analyses
and reports with respect to marketing and promotional activities as the Trust
may, from time to time, deem advisable; and (g) costs of implementing and
operating the Plan.
Replace the section titled "Share Price Calculation" on page 10 with the
following:
The value of an individual share in the Fund (the net asset value) is
calculated by dividing the total value of the Fund's investments and other
assets (including accrued income), less any liabilities (including estimated
accrued expenses), by the number of shares outstanding, rounded to the nearest
cent. Net asset value per share is determined as of the close of the New York
Stock Exchange (4:00 p.m., Eastern time) on each day that the exchange is open
for business, and on any other day on which there is sufficient trading in the
Fund's securities to materially affect the net asset value. The net asset value
per share of the Fund will fluctuate.
Securities which are traded on any exchange or on the NASDAQ
over-the-counter market are valued at the last quoted sale price. Lacking a last
sale price, a security is valued at its last bid price except when, in the
Advisor's opinion, the last bid price does not accurately reflect the current
value of the security. All other securities for which over-the-counter market
quotations are readily available are valued at their last bid price. When market
quotations are not readily available, when the Advisor determines the last bid
price does not accurately reflect the current value or when restricted
securities are being valued, such securities are valued as determined in good
faith by the Advisor, subject to review of the Board of Trustees of the Trust.
Fixed income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when the
Advisor believes such prices accurately reflect the fair market value of such
securities. A pricing service utilizes electronic data processing techniques
based on yield spreads relating to securities with similar characteristics to
determine prices for normal institutional-size trading units of debt securities
without regard to sale or bid prices. When prices are not readily available from
a pricing service, or when restricted or illiquid securities are being valued,
securities are valued at fair value as determined in good faith by the Advisor,
subject to review of the Board of Trustees. Short term investments in fixed
income securities with maturities of less than 60 days when acquired, or which
subsequently are within 60 days of maturity, are valued by using the amortized
cost method of valuation, which the Board has determined will represent fair
value.
Replace the first sentence of the section titled "Dividends and Distributions"
on page 14 with the following:
The Fund intends to declare substantially all of its net investment income
as dividends to its shareholders on a daily basis and to pay such dividends
monthly, and intends to distribute its net long term capital gains and its net
short term capital gains at least once a year.
<PAGE>
Replace the fourth paragraph of the section titled "Operation of the Fund" on
page 17 with the following:
The Fund is authorized to pay the Advisor a fee equal to 0.75% of its
average daily net assets. Unlike most other mutual funds, the management fees
paid by the Fund to the Advisor include transfer agency, pricing, custodial,
auditing and legal services, and general administrative and other operating
expenses. The Advisor pays all of the operating expenses of the Fund except
brokerage, taxes, interest, expenses which the Fund is authorized to pay
pursuant to the Distribution Plan, fees and expenses on non-interested person
trustees and extraordinary expenses.
Read the following in conjunction with the sections titled "The Fund" on page 4
and "Shareholder Rights" on page 17:
As of February 28, 1999, Sun Trust Bank, custodian for the Arthur F. Damos
Foundation, may be deemed to control the Fund as a result of its beneficial
ownership of shares of the Fund.
