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SUPPLEMENT DATED NOVEMBER 17, 1997 TO THE PROSPECTUSES, AS SUPPLEMENTED TO
DATE, OF
SIERRA TRUST FUNDS,
(dated October 31, 1997)
SIERRA ASSET MANAGEMENT PORTFOLIOS,
(dated October 31, 1997)
SIERRA PRIME INCOME FUND,
(dated February 14, 1996)
AND
THE SIERRA VARIABLE TRUST
(dated May 1, 1997)
The Prospectuses referred to above are amended and supplemented as follows:
On October 27-28, 1997, each Trust's Board of Trustees approved
various aspects of a proposed consolidation and restructuring involving the
funds of the Sierra Trust Funds ("STF"), Sierra Asset Management Portfolios
("SAMP"), Sierra Prime Income Fund ("SPIF") and The Sierra Variable Trust
("SVT") (collectively, the "Sierra Funds") and the mutual funds managed by
Composite Research & Management Co. ("Composite"), an affiliate of Sierra
Capital Management Corporation. The Boards approved, subject to shareholder
approval, the appointment of Composite as the new investment adviser for the
"Continuing Sierra Funds," i.e., all the Sierra Funds other than STF U.S.
Government Fund, STF Corporate Income Fund, STF Growth and Income Fund, STF
Global Money Fund, STF U.S. Government Money Fund, STF National Municipal Fund
and STF Short Term Global Government Fund, and SVT Short Term Global Government
Fund. The Boards also approved the reappointment of the subadvisors for the
Growth, Emerging Growth and International Growth Funds of both STF and SVT,
SPIF, and the STF California Municipal, STF California Insured Intermediate
Municipal, and STF Florida Insured Municipal Funds. As to the other Continuing
Sierra Funds, Composite would manage the portfolio of each Fund without a
subadvisor.
The relevant Boards also approved, subject to shareholder approval,
the reorganizations of the STF and SVT Short Term Global Government Funds with
and into the STF and SVT Short Term High Quality Bond Funds, respectively.
The STF Board also approved, subject to shareholder approval, the
reorganizations of the STF U.S. Government Fund, STF Corporate Income Fund, STF
Growth and Income Fund, STF Global Money Fund, STF U.S. Government Money Fund,
and STF National Municipal Fund with and into various funds managed by
Composite (the "Composite Funds") as follows:
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<TABLE>
<CAPTION>
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SIERRA TRUST FUNDS COMPOSITE FUNDS
- -------------------------------------------------------------------------------------------------------
<S> <C> <C>
U. S. Government Fund reorganized with and Composite U.S. Government Securities Fund
into
- -------------------------------------------------------------------------------------------------------
Corporate Income Fund reorganized with and Composite Income Fund
into
- -------------------------------------------------------------------------------------------------------
Growth and Income Fund reorganized with and Composite Growth & Income Fund
into
- -------------------------------------------------------------------------------------------------------
Global Money Fund reorganized with and Composite Money Market Fund
into
- -------------------------------------------------------------------------------------------------------
U.S. Government Money Fund reorganized with and Composite Money Market Fund
into
- -------------------------------------------------------------------------------------------------------
National Municipal Fund reorganized with and Composite Tax-Exempt Bond Fund
into
- -------------------------------------------------------------------------------------------------------
</TABLE>
Shareholder meetings have been called for December 23, 1997. Among
other things, shareholders of each Sierra Fund will also be asked to elect a
board of trustees consisting of the current independent trustees of the Sierra
Funds and all the current directors of the Composite Funds. If approved by
shareholders, the foregoing reorganizations and changes of investment adviser
would be put into effect at the end of December 1997, or shortly thereafter.
It is anticipated that the proposed consolidation of the Sierra Funds
with the Composite Funds will result in a single, integrated mutual fund
complex. For further information about the proposed consolidation of the
Sierra Funds, please call 1-800-222-5852.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<TABLE>
<S> <C>
SIERRA TRUST FUNDS
SIERRA ASSET MANAGEMENT PORTFOLIOS
SIERRA PRIME INCOME FUND THE SIERRA VARIABLE TRUST
P.O. BOX 5118 9301 CORBIN AVENUE, SUITE 333
WESTBORO, MASSACHUSETTS 01581-5118 NORTHRIDGE, CALIFORNIA 91324
</TABLE>
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