PENN CAPITAL FUNDS
A PORTFOLIO OF THE TIP FUNDS
PENN CAPITAL SELECT FINANCIAL SERVICES FUND
SUPPLEMENT DATED JANUARY 18, 2001
TO THE PROSPECTUS DATED JANUARY 31, 2000
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE PROSPECTUS AND SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS.
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A Special Meeting (the "Meeting") of the shareholders of the Penn Capital Select
Financial Services Fund (the "Fund") was held on January 12, 2001. At the
Meeting, shareholders voted on a proposal to approve the selection of Turner
Investment Partners, Inc. ("Turner") as the investment adviser for the Fund, and
to approve the investment advisory agreement between the TIP Funds, on behalf of
the Fund, and Turner (the "Agreement"). The proposal was approved and Turner is
currently the Fund's investment adviser pursuant to the Agreement.
Also at the Meeting, shareholders approved the following changes.
Turner Investment Partners' investment advisory fee may be adjusted based on the
Fund's total return performance as compared to its benchmark, the S&P Financials
Index. The fee will not exceed 1.25% or be lower than 0.75%, depending on
whether the Fund outperforms its benchmark by 3% or underperforms its benchmark
by 3%, respectively.
The Fund may charge a redemption fee, payable at a rate of 2% as a percentage of
amount redeemed on redemptions made within 90 days of purchase.
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PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
PEN-A-001-03000
