v
HARRIS INSIGHT(R) FUNDS
HARRIS INSIGHT EQUITY FUNDS
HARRIS INSIGHT FIXED INCOME FUNDS
A SHARES
Supplement dated December 23, 1999
to the Prospectuses dated May 3, 1999
THE FOLLOWING TABLE REPLACES THE CORRESPONDING TABLE UNDER THE SECTION ENTITLED
FEES AND EXPENSES OF THE HARRIS INSIGHT EQUITY FUNDS.
<TABLE>
ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets,
expressed as a % of average net assets)
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------------------
Equity Small-Cap Small-Cap Emerging
Balanced Income Equity Growth Value Opportunity International Markets
Fund Fund Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Advisory Fees1 0.60% 0.70% 0.70% 0.90% 0.80% 1.00% 1.05% 1.25%
- ------------------------------------------------------------------------------------------------------------------------------------
Rule 12b-1 Fees2 0.35 0.35 0.35 0.35 0.35 0.35 0.35 0.35
- ------------------------------------------------------------------------------------------------------------------------------------
Other Expenses 0.38 0.26 0.19 0.21 0.25 0.21 0.28 0.83
- ------------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses1 1.33% 1.31% 1.24% 1.46% 1.40% 1.56% 1.68% 2.43%
- ------------------------------------------------------------------------------------------------------------------------------------
1 Expenses are based on amounts incurred by the Funds during their most recent
fiscal year but do not reflect advisory fees waived by Harris Trust. After
these waivers, actual Fund advisory fees and total operating expenses for the
fiscal year ended December 31, 1998 were:
<CAPTION>
Equity Small-Cap Small-Cap Emerging
Balanced Income Equity Growth Value Opportunity International Markets
Fund Fund Fund Fund Fund Fund Fund Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investment Advisory Fees 0.50% 0.67% 0.70% 0.89% 0.74% .99% 1.05% .92%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 1.23% 1.28% 1.24% 1.45% 1.34% 1.55% 1.68% 2.10%
- ------------------------------------------------------------------------------------------------------------------------------------
2 Commencing October 1, 1999, Harris Trust has reduced Rule 12b-1Fees for the
Equity Funds to 0.25% of average net assets. Those fee reductions can be
changed or terminated at any time at the option of Harris Trust. If those fee
reductions had been in effect for the fiscal year ended December 31, 1998, the
total operating expenses for each of the Equity Funds (expressed as a
percentage of average net assets) for that fiscal year end would have been as
follows: Balanced Fund 1.23%; Equity Income Fund 1.21%; Equity Fund 1.14%;
Growth Fund 1.36%; Small-Cap Value Fund 1.30%; Small-Cap Opportunity Fund
1.46%; International Fund 1.58%; and Emerging Markets Fund 2.33%.
</TABLE>
THE FOLLOWING TABLE REPLACES THE CORRESPONDING TABLE UNDER THE SECTION ENTITLED
FEES AND EXPENSES OF THE HARRIS INSIGHT FIXED INCOME FUNDS.
<TABLE>
ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets,
expressed as a % of average net assets)
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Convertible Intermediate Short/ Intermediate
Securities Tax-Exempt Bond Tax-Exempt Intermediate Government
Fund Bond Fund2 Fund Bond Fund(2) Bond Fund Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Advisory Fees1 0.70% 0.60% 0.65% 0.60% 0.70% 0.65%
- ------------------------------------------------------------------------------------------------------------------------------------
Rule 12b-1 Fees 0.25 0.25 0.25 0.25 0.25 0.25
- ------------------------------------------------------------------------------------------------------------------------------------
Other Expenses 0.31 0.20 0.23 0.20 0.20 0.26
- ------------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 1.26% 1.05% 1.13% 1.05% 1.15% 1.16%
- ------------------------------------------------------------------------------------------------------------------------------------
1 Expenses are based on amounts incurred by the Funds during their most recent
fiscal year but do not reflect advisory fees waived by Harris Trust. After
these waivers, actual Fund advisory fees and total operating expenses for the
fiscal year ended December 31, 1998 were:
<PAGE>
<CAPTION>
Convertible Intermediate Short/ Intermediate
Securities Tax-Exempt Bond Tax-Exempt Intermediate Government
Fund Bond Fund2 Fund Bond Fund2 Bond Fund Bond Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment Advisory Fees 0.61% 0.59% 0.37% 0.60% 0.40% 0.24%
- ------------------------------------------------------------------------------------------------------------------------------------
Total Operating Expenses 1.17% 1.04% 0.85% 1.05% 0.85% 0.75%
- ------------------------------------------------------------------------------------------------------------------------------------
2 Commencing October 18, 1999, Harris Trust has waived its entire advisory fee
for the Tax-Exempt Bond Fund and the Intermediate Tax-Exempt Bond Fund. Those
waivers can be reduced or terminated at any time at the option of Harris
Trust. If those fee waivers had been in effect for the fiscal year ended
December 31, 1998, the total operating expenses for each of the Tax-Exempt
Bond Fund and the Intermediate Tax-Exempt Bond Fund (expressed as a percentage
of average net assets) for that year end would have been 0.45%.
</TABLE>
HIF 1308 11/99
<PAGE>
THE FOLLOWING TABLE REPLACES THE CORRESPONDING TABLE UNDER THE SECTION ENTITLED
SHAREHOLDER SERVICES - HOW TO BUY SHARES - CHOOSE YOUR INVESTMENT AMOUNT.
Minimum Per Fund
To open a regular account $1,000
To open a retirement account $250
To open an account using the Automatic Investment Plan $50
To add to an existing account $50
THE FOLLOWING REPLACES THE CORRESPONDING TEXT AND TABLES UNDER THE SECTION
ENTITLED SHAREHOLDER SERVICES-HOW TO BUY SHARES-SALES CHARGES
SALES CHARGES
A Shares of the Funds are generally sold with a sales charge of up to 5.50%
(applied when your investment is made).
When you purchase A Shares of the Funds through an institution, the distributor
reallows a portion of the sales charge to the institution, except as described
below. No sales charge is assessed on the reinvestment of distributions.
Sales charges for A Shares of the Funds are as follows:
<TABLE>
EQUITY FUNDS
<CAPTION>
SALES CHARGE AS A % OF DEALER ALLOWANCE AS
AMOUNT OF PURCHASE SALES CHARGES NET AMOUNT INVESTED % OF OFFERING PRICE*
<S> <C> <C> <C>
Less than $50,000 5.50% 5.82% 5.00%
$50,000 to $99,999 4.50 4.71 4.00
$100,000 to $249,999 3.50 3.63 3.25
$250,000 to $499,999 2.50 2.56 2.25
$500,000 to $999,999 2.00 2.04 1.75
$1,000,000 and over 0.00 0.00 1.00++
<CAPTION>
CONVERTIBLE SECURITIES FUND, TAX-EXEMPT BOND FUND AND BOND FUND
SALES CHARGE AS A % OF DEALER ALLOWANCE AS
AMOUNT OF PURCHASE SALES CHARGES NET AMOUNT INVESTED % OF OFFERING PRICE*
<S> <C> <C> <C>
Less than $50,000 4.50% 4.71% 4.25%
$50,000 to $99,999 4.25 4.43 4.00
$100,000 to $249,999 3.50 3.63 3.25
$250,000 to $499,999 2.50 2.56 2.25
$500,000 to $999,999 2.00 2.04 1.75
$1,000,000 and over 0.00 0.00 1.00++
<CAPTION>
INTERMEDIATE TAX-EXEMPT BOND FUND, SHORT/INTERMEDIATE BOND FUND AND INTERMEDIATE GOVERNMENT BOND FUND
SALES CHARGE AS A % OF DEALER ALLOWANCE AS
AMOUNT OF PURCHASE SALES CHARGES NET AMOUNT INVESTED % OF OFFERING PRICE*
<S> <C> <C> <C>
Less than $50,000 3.50% 3.63% 3.25%
$50,000 to $99,999 3.25 3.36 3.00
$100,000 to $249,999 2.50 2.56 2.25
$250,000 to $499,999 2.00 2.04 1.75
$500,000 to $999,999 1.50 1.52 1.25
$1,000,000 and over 0.00 0.00 1.00++
- --------------------------------------------------------------------------------
++The dealer allowance for these purchases is 1.00% on purchases of $1 million
to $2 million, 0.80% on the next $1 million, 0.50% on the next $47 million,
and 0.25% on purchases in excess of $50 million.
* Dealers receive the following allowances for aggregate purchases in any
twelve-month period by a qualified employee benefit plan, including
employer-sponsored 401(k), 403(b), or other qualified retirement plan,
provided that the plan sponsor demonstrates at the time of the initial
purchase of shares that there are at least 75 eligible employees or that the
plan has assets of at least $500,000: 1.00% on purchases up to $2 million,
0.80% on the next $1 million, 0.50% on the next $47 million, and 0.25% on
purchases in excess of $50 million. The twelve-month period commences on the
plan's initial purchase date and is reset on each anniversary thereof.
</TABLE>
No sales charge is assessed on purchases of $1 million or more, nor on purchases
by:
o Any bank, trust company, or other institution acting on behalf of a fiduciary
customer account or any other trust account (including plans under Section
401 of the Internal Revenue Code)
o Registered representatives and employees of broker-dealers having selling
group agreements with the distributor for the Funds relating to the Funds,
and any trust, pension, profit-sharing, or other benefit plan sponsored by
such a broker-dealer for its representatives and employees
o Any individual with an investment account or advisory relationship with HIM
o Directors or Trustees of the Funds
<PAGE>
REDUCED SALES CHARGES
You may be eligible to buy A Shares with a reduced sales charge in three ways,
but these purchases may be subject to a CDSC, described below -
o RIGHT OF ACCUMULATION Allows you to include your existing investments in A
Shares of the Funds as part of your current investment for purposes of
calculating sales charges.
o LETTER OF INTENT Allows you to count all investments in A Shares of the Funds
over the next thirteen months, as if you were making them all at once for
purposes of calculating sales charges.
o FAMILY PURCHASES Allows purchases by family members over a thirteen-month
period to be combined as if they were made at the same time for purposes of
calculating sales charges. ("Family" includes any person considered to be a
part of an extended family, including but not limited to parents,
grandparents, children, grandchildren, god-parents, in-laws, aunts, uncles,
brothers, sisters, nephews, nieces, and cousins, including step- and adopted
relatives.)
To qualify for a reduced sales charge, you must notify and provide sufficient
information to the Funds at the time of purchase. If you invest through an
institution, you should notify the institution, which in turn must notify the
Funds. Programs that allow for reduced sales charges may be changed or
eliminated at any time.
CONTINGENT DEFERRED SALES CHARGE
A Shares of a Fund that are redeemed within certain periods will be subject to a
contingent deferred sales charge (CDSC) when no initial sales charge was
assessed on purchases:
o of $1,000,000 or more in a single transaction
o pursuant to the right of accumulation, a letter of intent, or a family
purchase.
The amount of the CDSC and the period for which it applies are as follows:
ALL FUNDS
CONTINGENT DEFERRED SALES CHARGE AS A %
PERIOD SHARES HELD OF DOLLAR AMOUNT SUBJECT TO CHARGE
Less than one year 1.00%
One to two years 0.50
The CDSC, which will be used to recover commissions paid to institutions, will
be assessed on an amount equal to the lesser of the cost of the shares being
redeemed and the net asset value of the shares at the time of redemption.
No CDSC will be imposed on
o increases in net asset value above the initial purchase price
o redemptions of shares acquired through the reinvestment of dividends and
distributions
o involuntary redemptions by a Fund of shareholder accounts with low account
balances
Redemptions of shares will be effected in the manner that results in the
imposition of the lowest deferred sales charge. Redemptions will be made -
o First, from A Shares held for more than two years
o Second, from A Shares acquired through the reinvestment of dividends and
distributions
o Third, from A Shares held within one and two years
o Fourth, from A Shares held for less than one year
The CDSC on shares purchased through an exchange from A Shares of another Fund
is based upon the original purchase date and price of the other Fund's shares.
The CDSC will be waived by the Funds for redemptions -
o pursuant to a systematic withdrawal plan
o that are shown to have resulted from the death or disability of the
accountholder
o by qualified retirement plans upon plan termination or dissolution
o directed by participants in qualified retirement plans
o from IRAs, if made pursuant to death or disability of the accountholder, or
for minimum distributions required after attaining age 70 1/2
THE FOLLOWING TEXT REPLACES THE SECTION ENTITLED SHAREHOLDER SERVICES -
ADDITIONAL SHAREHOLDER SERVICES AND INFORMATION - EXCHANGING SHARES.
EXCHANGING SHARES
You may exchange your A Shares of a Fund for A Shares of any other Harris
Insight Fund or for N Shares of any Harris Insight Money Market Fund without a
sales charge, provided that:
o Your A Shares have been held for at least seven days
o Your account registration stays the same
o The shares you wish to buy are registered for sale in your home state
Any N Shares of a Harris Insight Money Market Fund that you obtain by exchanging
A Shares of another Fund may in turn be exchanged for A Shares again without any
sales charge. A sales charge will apply to exchanges of N Shares from a Harris
Insight Money Market Fund if those Shares (a) were not purchased through a
previous exchange from A Shares of a Fund or (b) are attributable to dividends
and interest earned on Harris Insight Money Market Funds N Shares.
The Harris Insight Money Market Funds N Shares are available through a separate
prospectus.
Each Fund reserves the right to terminate temporarily or permanently the
exchange privilege of any investor who makes more than four exchanges out of a
Fund in a calendar year. Accounts under common ownership or control, including
accounts with the same taxpayer identification number, will be counted together
for purposes of the four-exchange limit. Also, each Fund reserves the right to
modify or discontinue the exchange privilege for any reason, upon 60 days
written notice.
Each Fund reserves the right to refuse an exchange by any person or group if, in
Harris Trust's judgment, the Fund to be purchased would be unable to invest the
money effectively in accordance with its investment objective and policies or
otherwise might be adversely affected.
The exchange limit may be modified for accounts in certain institutional
retirement plans to conform to plan exchange limits and Department of Labor
regulations. See your plan materials for further information.
The procedures that apply to redeeming shares also apply to exchanging shares.
THE FOLLOWING TEXT REPLACES THE CORRESPONDING PARAGRAPHS UNDER THE SECTION
ENTITLED PORTFOLIO MANAGERS PORTFOLIO MANAGERS OF THE HARRIS INSIGHT EQUITY
FUNDS.
SMALL-CAP OPPORTUNITY FUND - Paul Kleinaitis. Mr. Kleinaitis joined HIM in 1999
and serves as Principal and Portfolio Manager. He was appointed portfolio
manager of the Fund effective October 1,1999 and has 12 years of experience in
portfolio management and investment research. Prior to joining HIM, he served as
a portfolio manager and sell-side equity analyst for a brokerage and investment
management firm, where he managed small company growth portfolios.
SMALL-CAP VALUE FUND - John K. Tesseo. Mr. Tesseo joined HIM in 1999 and serves
as Principal and Portfolio Manager. He was appointed portfolio manager of the
Fund effective October 1, 1999 and has 8 years of experience in portfolio
management and investment research. Prior to joining HIM, he served as portfolio
manager and director of equity research for a brokerage and investment
management firm, managing mutual funds and institutional and individual
accounts. Previously, he was a systems engineer for a large software company,
consulting on and developing products for financial institutions.
GROWTH FUND - T. Andrews Janes. Mr. Janes joined HIM in 1999 and serves as
Partner and Portfolio Manager. He was appointed portfolio manager of the Fund
effective May 28, 1999 and has 13 years of experience in portfolio management,
investment research and trust administration. Prior to joining HIM, he served as
portfolio manager for a large banking institution, managing mutual funds and
institutional accounts.
THE FOLLOWING TEXT REPLACES THE CORRESPONDING PARAGRAPH UNDER THE SECTION
ENTITLED PORTFOLIO MANAGERS PORTFOLIO MANAGERS OF THE HARRIS INSIGHT FIXED
INCOME FUNDS.
CONVERTIBLE SECURITIES FUND - Jon D. Thanos. Mr. Thanos joined HIM in 1996 and
serves as Principal and Portfolio Manager. He was appointed portfolio manager of
the Fund effective July 21, 1999 and has seven years' experience in portfolio
management and trading. Mr. Thanos is also the portfolio manager of the Index
Fund. Prior to joining HIM, he served as trader for an options market-making
firm.
