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SUPPLEMENT DATED SEPTEMBER 1, 1997
REPLACING THE SUPPLEMENT DATED APRIL 1, 1997
TO PROSPECTUS DATED JULY 22, 1996
OF
SIERRA ASSET MANAGEMENT PORTFOLIOS
P.O. BOX 5118
WESTBORO, MASSACHUSETTS 01581-5118
The Prospectus, dated July 22, 1996, as supplemented, for the Class A Shares and
Class B Shares of the INCOME, VALUE, BALANCED, GROWTH AND CAPITAL GROWTH
PORTFOLIOS of the Sierra Asset Management Portfolios (the "Trust") is amended
and supplemented as follows:
In the section "THE PORTFOLIOS IN DETAIL -- SIERRA SERVICES, SIERRA ADVISORS,
THEIR AFFILIATES AND THE PORTFOLIOS' SERVICE PROVIDERS -- INVESTMENT ADVISOR OF
THE PORTFOLIOS" on page 54, add the following paragraph after the second
paragraph:
On July 1, 1997, Great Western Financial Corporation ("GWFC"), the
indirect parent of Sierra Services, the Portfolios' investment
advisor, and Washington Mutual, Inc. ("Washington Mutual"), a publicly
held financial services company, closed a previously announced
Agreement and Plan of Merger resulting in the merger of GWFC with and
into a wholly-owned subsidiary of Washington Mutual (the "Merger"). As
a result of the Merger, Sierra Services is an indirect subsidiary of
Washington Mutual.
In the section "THE INVESTMENT ADVISOR AND INVESTMENT SUB-ADVISORS OF THE
UNDERLYING FUNDS -- INVESTMENT SUB-ADVISORS OF THE UNDERLYING FUNDS" under the
paragraph beginning "SCUDDER" on page 55, add the following paragraph after the
first paragraph:
Scudder, Stevens & Clark, Inc. ("Scudder") has entered into an
agreement with The Zurich Group ("Zurich"), an international insurance
and financial services organization, to form a new global investment
organization. Under the agreement, Scudder will combine with Zurich's
subsidiary, Zurich Kemper Investment, Inc. to form Scudder Kemper
Investments, Inc. After the transaction is completed, Zurich will own
approximately 70% of the new organization with the balance owned by
the new organization's officers and employees. Subject to certain
conditions being met, including regulatory approvals, the transaction
is expected to close in the fourth quarter of 1997.
In the section "THE INVESTMENT ADVISOR AND INVESTMENT SUB-ADVISORS OF THE
UNDERLYING FUNDS -- INVESTMENT SUB-ADVISORS OF THE UNDERLYING FUNDS" under the
paragraph beginning "VAN KAMPEN" on page 56, add the following paragraph after
the first paragraph:
On May 31, 1997, Morgan Stanley Group Inc. ("Morgan Stanley") and Dean
Witter, Discover & Co. closed a previously announced Agreement and
Plan of Merger to form Morgan Stanley, Dean Witter, Discover & Co.
Prior thereto, Morgan Stanley Group Inc. was the parent of Van Kampen
American Capital Management Inc. ("Van Kampen"), the investment
sub-advisor of the Sierra Prime Income Fund. Van Kampen is now a
subsidiary of Morgan Stanley, Dean Witter, Discover & Co.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
