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Supplement Dated July 1, 1996
to Prospectus Dated February 21, 1996
Fixed Income Funds - Class A Shares
Harris Insight Convertible Securities Fund
Harris Insight Short/Intermediate Bond Fund
Harris Insight Bond Fund
Harris Insight Intermediate Government Bond Fund
Harris Intermediate Tax-Exempt Bond Fund
Harris Insight Tax-Exempt Bond Fund
The following text replaces the section entitled "ADMINISTRATORS, CUSTODIAN AND
TRANSFER AGENT," under "MANAGEMENT":
ADMINISTRATOR, CUSTODIAN AND TRANSFER AGENT
Harris Trust (the "Administrator") serves as the administrator of the Funds
and in that capacity generally assists the Funds in all aspects of their
administration and operation. Harris Trust also serves as the transfer and
dividend disbursing agent of the Funds (the "Transfer Agent").
The Administrator has entered into a Sub-Administration Agreement with
Funds Distributor, Inc. (the "Sub-Administrator"), pursuant to which the Sub-
Administrator performs certain administrative services for the Funds. The
Administrator has also entered into Sub-Administration and Accounting Services
Agreements with PFPC, Inc. on behalf of the Company and the Trust ("PFPC" or the
"Sub-Administrator and Accounting Services Agent"). Under these Agreements, the
Administrator compensates the Sub-Administrator and the Sub-Administrator and
Accounting Services Agent for providing such services.
The Transfer Agent has entered into a Sub-Transfer Agency Services
Agreement with PFPC (the "Sub-Transfer Agent") on behalf of the Company and the
Trust, pursuant to which the Sub-Transfer Agent performs certain transfer agency
and dividend disbursing agency services. Under these Agreements, the Transfer
Agent compensates the Sub-Transfer Agent for providing such services.
PNC Bank, N.A. (the "Custodian") serves as custodian of the assets of the
Funds. PFPC and the Custodian are indirect, wholly-owned subsidiaries of PNC
Bank Corp.
As compensation for their services, the Administrator, the Transfer Agent
and the Custodian are entitled to receive a combined fee based on the aggregate
average daily net assets of the portfolios of the Company and the Trust, payable
monthly at an annual rate of .17% of the first $300 million of average daily net
assets; .15% of the next $300 million; and .13% of average net assets in excess
of $600 million. In addition, the Funds pay a separate fee to the Sub-Transfer
Agent for certain retail sub-transfer agent services and reimburse the Custodian
for various custody transactional expenses.
<PAGE>
Supplement Dated July 1, 1996
to Prospectus Dated February 21, 1996
Equity Funds - Class A Shares
Harris Insight Equity Fund
Harris Insight Equity Income Fund
Harris Insight Growth Fund
Harris Insight Small-Cap Opportunity Fund
Harris Insight Index Fund
Harris Insight International Fund
Harris Insight Balanced Fund
The following text replaces the section entitled "ADMINISTRATORS, CUSTODIAN AND
TRANSFER AGENT," under "MANAGEMENT":
ADMINISTRATOR, CUSTODIAN AND TRANSFER AGENT
Harris Trust (the "Administrator") serves as the administrator of the Funds
and in that capacity generally assists the Funds in all aspects of their
administration and operation. Harris Trust also serves as the transfer and
dividend disbursing agent of the Funds (the "Transfer Agent").
The Administrator has entered into a Sub-Administration Agreement with
Funds Distributor, Inc. (the "Sub-Administrator"), pursuant to which the Sub-
Administrator performs certain administrative services for the Funds. The
Administrator has also entered into Sub-Administration and Accounting Services
Agreements with PFPC, Inc. on behalf of the Company and the Trust ("PFPC" or the
"Sub-Administrator and Accounting Services Agent"). Under these Agreements, the
Administrator compensates the Sub-Administrator and the Sub-Administrator and
Accounting Services Agent for providing such services.
The Transfer Agent has entered into Sub-Transfer Agency Services Agreements
with PFPC (the "Sub-Transfer Agent") on behalf of the Company and the Trust,
pursuant to which the Sub-Transfer Agent performs certain transfer agency and
dividend disbursing agency services. Under these Agreements, the Transfer Agent
compensates the Sub-Transfer Agent for providing such services.
PNC Bank, N.A. (the "Custodian") serves as custodian of the assets of the
Funds. PFPC and the Custodian are indirect, wholly-owned subsidiaries of PNC
Bank Corp.
As compensation for their services, the Administrator, the Transfer Agent
and the Custodian are entitled to receive a combined fee based on the aggregate
average daily net assets of the portfolios of the Company and the Trust, payable
monthly at an annual rate of .17% of the first $300 million of average daily net
assets; .15% of the next $300 million; and .13% of average net assets in excess
of $600 million. In addition, the Funds pay a separate fee to the Sub-Transfer
Agent for certain retail sub-transfer agent services and reimburse the Custodian
for various custody transactional expenses.
<PAGE>
Supplement Dated July 1, 1996 to Prospectus Dated February 21, 1996
Institutional Shares
Harris Insight Equity Fund
Harris Insight Equity Income Fund
Harris Insight Growth Fund
Harris Insight Small-Cap Opportunity Fund
Harris Insight Index Fund
Harris Insight International Fund
Harris Insight Balanced Fund
Harris Insight Convertible Securities Fund
Harris Insight Short/Intermediate Bond Fund
Harris Insight Bond Fund
Harris Insight Intermediate Government Bond Fund
Harris Insight Intermediate Tax-Exempt Bond Fund
Harris Insight Tax-Exempt Bond Fund
Harris Insight Government Money Market Fund
Harris Insight Money Market Fund
Harris Insight Tax-Exempt Money Market Fund
The following text replaces the section entitled "ADMINISTRATORS, CUSTODIAN AND
TRANSFER AGENT," under "MANAGEMENT":
ADMINISTRATOR, CUSTODIAN AND TRANSFER AGENT
Harris Trust (the "Administrator") serves as the administrator of the Funds
and in that capacity generally assists the Funds in all aspects of their
administration and operation. Harris Trust also serves as the transfer and
dividend disbursing agent of the Funds (the "Transfer Agent").
The Administrator has entered into a Sub-Administration Agreement with
Funds Distributor, Inc. (the "Sub-Administrator"), pursuant to which the Sub-
Administrator performs certain administrative services for the Funds. The
Administrator has also entered into Sub-Administration and Accounting Services
Agreements with PFPC, Inc. on behalf of the Company and the Trust ("PFPC" or the
"Sub-Administrator and Accounting Services Agent"). Under these Agreements, the
Administrator compensates the Sub-Administrator and the Sub-Administrator and
Accounting Services Agent for providing such services.
The Transfer Agent has entered into a Sub-Transfer Agency Services
Agreement with PFPC (the "Sub-Transfer Agent") on behalf of the Company and the
Trust, pursuant to which the Sub-Transfer Agent performs certain transfer agency
and dividend disbursing agency services. Under these Agreements, the Transfer
Agent compensates the Sub-Transfer Agent for providing such services.
PNC Bank, N.A. (the "Custodian") serves as custodian of the assets of the
Funds. PFPC and the Custodian are indirect, wholly-owned subsidiaries of PNC
Bank Corp.
As compensation for their services, the Administrator, the Transfer Agent
and the Custodian are entitled to receive a combined fee based on the aggregate
average daily net assets of the portfolios of the Company and the Trust, payable
monthly at an annual rate of .17% of the first $300 million of average daily net
assets; .15% of the next $300 million; and .13% of average net assets in excess
of $600 million. In addition, the Funds pay a separate fee to the Sub-Transfer
Agent for certain retail sub-transfer agent services and reimburses the
Custodian for various custody transactional expenses.
<PAGE>
Supplement Dated July 1, 1996
to Statement of Additional Information Dated February 21, 1996
Harris Insight Equity Fund
Harris Insight Equity Income Fund
Harris Insight Growth Fund
Harris Insight Small-Cap Opportunity Fund
Harris Insight Index Fund
Harris Insight International Fund
Harris Insight Balanced Fund
Harris Insight Convertible Securities Fund
Harris Insight Short/Intermediate Bond Fund
Harris Insight Bond Fund
Harris Insight Intermediate Government Bond Fund
Harris Insight Intermediate Tax-Exempt Bond Fund
Harris Insight Tax-Exempt Bond Fund
Harris Insight Government Money Market Fund
Harris Insight Money Market Fund
Harris Insight Tax-Exempt Money Market Fund
The following text replaces the section entitled "ADMINISTRATORS," under
"MANAGEMENT":
ADMINISTRATOR. Harris Trust serves as the Funds' administrator
("Administrator") pursuant to Administration Agreements with the Company and the
Trust and in that capacity generally assists the Funds in all aspects of their
administration and operation. The Administrator has entered into a Sub-
Administration Agreement with Funds Distributor, Inc. ("Funds Distributor") and
Sub-Administration and Accounting Services Agreements with PFPC, Inc. ("PFPC")
(the "Sub-Administrators") on behalf of the Company and the Trust. Funds
Distributor has agreed to furnish officers for the Company and the Trust;
provide corporate secretarial services; prepare and file various reports with
the appropriate regulatory agencies; and prepare various materials required by
the Commission. PFPC has agreed to furnish officers for the Company and the
Trust; provide accounting and bookkeeping services for the Funds, including the
computation of each Fund's net asset value, net income and realized capital
gains, if any; and prepare various materials required by any state securities
commission having jurisdiction over the Company or the Trust.
The following text replaces the section entitled "OTHER INFORMATION PERTAINING
TO DISTRIBUTION, ADMINISTRATION, CUSTODIAN AND TRANSFER AGENCY AGREEMENTS,"
under "MANAGEMENT":
OTHER INFORMATION PERTAINING TO DISTRIBUTION, ADMINISTRATION, SUB-
ADMINISTRATION, CUSTODIAN, TRANSFER AGENCY AND SUB-TRANSFER AGENCY AGREEMENTS.
Harris Trust serves as the transfer agent and dividend disbursing agent
("Transfer Agent") of the Funds pursuant to Transfer Agency Services Agreements
with the Company and the Trust. The Transfer Agent has entered into Sub-
Transfer Agency Services Agreements with PFPC (the "Sub-Transfer Agent") on
behalf of the Company and the Trust. PFPC is an affiliate of PNC Bank, N.A.,
the Custodian for the Company and the Trust. PFPC and PNC Bank, N.A. are not
affiliates of Funds Distributor, Harris Trust or Harris Investment Management,
Inc.
The contracts of the Company and the Trust with the Investment Adviser,
Investment Sub-Adviser and Portfolio Management Agent (the "Contractors")
provide that if, in any fiscal year, the total expenses of a Fund (excluding
taxes, interest, brokerage commissions and other portfolio transaction expenses,
other expenditures that are capitalized in accordance with generally accepted
accounting principles and extraordinary expenses and payments under plans of the
Fund adopted pursuant to Rule 12b-1 under the Act (the "Service Plans"), but
including the fees provided for pursuant to the Fund's agreements relating to
the provision of various advisory and administration services) exceed the most
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restrictive expense limitation applicable to the Fund imposed by the securities
laws or regulations of any state in which the Fund's shares are registered for
sale, such parties shall waive their fees proportionately under the Advisory
Contract with respect to the Tax-Exempt Money Fund and the Portfolio Management
Contracts with respect to all other Funds and fee arrangements with the Funds'
Administrator, Sub-Administrators, Transfer Agent, Sub-Transfer Agent and
Custodian for the fiscal year to the extent of the excess or reimburse the
excess, but only to the extent of their respective fees. The Trust and the
Company believe that currently the most restrictive applicable expense
limitation is 2.5% of the first $30 million of average net assets, 2% of the
next $70 million of average net assets and 1.5% of average net assets in excess
of $100 million. No such waivers were necessary in 1995.
The following text is to be inserted after "INVESTMENT ADVISER, INVESTMENT AND
PORTFOLIO MANAGEMENT AGENT," under "MANAGEMENT":
WHY INVEST IN THE HARRIS INSIGHT FUNDS?
THE INSIGHT TO FOCUS ON THE FUTURE.
The skilled investment teams behind the Harris Insight Funds believe that
consistent investment performance requires discipline, focus, knowledge, and the
finest informational resources available.
The money management philosophy that Harris Investment Management employs
focuses on two key points:
- - Investments should be constantly monitored and actively managed.
- - A systematic investment process increases consistency of performance.
MANAGING TO HELP INVESTORS MAKE BETTER CHOICES.
Experience and creativity, combined with technological support, are most likely
to result in successful investment decisions. Harris Investment Management
offers investors that powerful combination for managing their money. More
importantly, instead of relying on individual stars to manage its mutual funds,
Harris Investment Management has established a strong professional team of
seasoned portfolio managers and analysts. Together, they take a quantitatively-
driven approach to investing, focusing on their investors' needs, concerns and
investment goals.
HOW HARRIS INVESTMENT MANAGEMENT MANAGES EQUITIES.
Harris Investment Management is a leader in the application of analytic
techniques used in the selection of stock portfolios. Harris Investment
Management's equity investment process focuses on maintaining a well-diversified
portfolio of stocks whose prices are determined to be undervalued based upon
their future potential.
After identifying the appropriate type of investments for each Fund - whether
the stock is issued by large, established companies, or by smaller, faster
growing firms, or even international corporations - Harris Investment Management
screens each security for quality and liquidity. A five factor model then ranks
the remaining stocks from the most to the least attractive. Stocks which fail
to meet Harris Investment Management's strict guidelines are identified and
removed from consideration.
Attractive stocks are continually pinpointed and added to the portfolio, while
those that have become unattractive are systematically replaced. Fund portfolio
managers, in conjunction with Harris Investment Management's experienced
research analysts, play an active role throughout the process, reviewing the
model portfolio, implementing buy and sell decisions, and monitoring costs.
HOW HARRIS INVESTMENT MANAGEMENT MANAGES FIXED INCOME.
Harris Investment Management actively manages taxable and tax-exempt fixed
income securities using a highly disciplined, quantitatively-based investment
process. This enables Harris Investment Management to create portfolios of
fixed income securities that it believes are undervalued based upon their future
<PAGE>
potential. Harris Investment Management seeks securities in specific industries
or areas of the country that, it believes, offer the best value and stand to
benefit from anticipated changes in interest rates.
Using quantitative models that attempt to ensure competitive results in both
rising and falling markets, bond portfolio managers select securities within
different industries while managing interest rate risk. These quantitative
models have the ability to measure changes in the economy, changes in the prices
of various goods and services, and changes in interest rates. Potential
purchases are finally reviewed with regard to their suitability, credit
assessment and the impact to the overall portfolio.
