<PAGE>
[LOGO]
TECHNOLOGY GROWTH FUND
CLASS A
PROSPECTUS
DATED OCTOBER 1, 2000
INVESTMENT MANAGER:
CITY NATIONAL INVESTMENTS
A division of City National Bank
The Securities and Exchange Commission has not approved or
disapproved
these securities or passed upon the accuracy or adequacy of this
Prospectus.
Any representation to the contrary is a criminal offense.
------------------------------------------------------------------------------
MUTUAL FUND SHARES ARE NOT FDIC INSURED. MUTUAL FUND SHARES ARE
NOT BANK DEPOSITS, NOR ARE THEY OBLIGATIONS OF, OR GUARANTEED BY,
CITY NATIONAL BANK. INVESTING IN MUTUAL FUNDS INVOLVES RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Overview........................................... 2
Management of the Fund............................. 8
Additional Investment Strategies and Related
Risks............................................ 10
Account Policies................................... 12
Understanding Earnings and Taxes................... 14
How to Buy and Sell Shares......................... 16
Important Terms to Know............................ 19
For More Information ....................... back cover
</TABLE>
More detailed information on all subjects covered in this simplified Prospectus
is contained within the STATEMENT OF ADDITIONAL INFORMATION ("SAI"). Investors
seeking more in-depth explanations of the Fund should request the SAI and review
it before purchasing shares.
This Prospectus offers Class A shares of the Technology Growth Fund (the
"Fund"). Class A shares are intended for individual investors, partnerships,
corporations and other accounts that have diversified investment needs. The Fund
offers other classes of shares which are subject to the same management fee and
other expenses but may be subject to different distribution and/ or shareholder
servicing costs.
1
<PAGE>
OVERVIEW
OUR GOAL
The Fund seeks to provide long-term capital appreciation by investing
primarily in U.S. corporations and U.S. dollar denominated American
Depository Receipts of foreign corporations with the potential for growth
which engage in technology-focused businesses. The goal of the Fund can
only be changed with shareholder approval.
PRINCIPAL STRATEGY
We purchase a diversified portfolio at least 65% of which consists of
securities of U.S. corporations of any size and U.S. dollar denominated
American Depository Receipts of foreign corporations of any size that are
engaged in the production, distribution and development of products or
services based on technology and which the Fund's investment manager
believes should benefit significantly from advances or improvements in
technology. Although the Fund will generally invest primarily in large
capitalization companies (I.E., companies with a market capitalization
over $5 billion), the Fund may also invest a significant portion of its
assets in companies with smaller capitalizations. The investment manager
uses a combination of quantitative and fundamental analysis to select
companies with share price growth potential that may not be recognized by
the market at large. The companies generally:
- have or are expected to develop products, processes or services
that should provide significant technological advancements or
improvements, and/or
- rely extensively on technology in connection with their
operations or services.
2
<PAGE>
The Fund will be diversified across a number of sectors and industries
within the technology area, and will not concentrate its investments in
any particular industry or group of related industries. As a result, the
Fund may have more flexibility to invest in companies that the investment
manager believes should benefit from advancements or improvements in
technology in a number of industries. Nevertheless, the Fund may hold a
significant portion of its assets in industries such as electronics, the
Internet, aerospace/defense, biotechnology, computers, office/business
equipment, semiconductors, fiber optics, software, telecommunications,
telecommunications equipment and technology consulting.
The Fund may invest substantially all of its assets in common stocks. The
Fund may also engage in futures and options transactions for hedging and
risk management purposes.
3
<PAGE>
PRINCIPAL RISKS OF INVESTING IN OUR FUND
As with any mutual fund, there are risks to investing. We cannot
guarantee that we will meet our investment goal. The Fund may expose you
to certain risks that could cause you to lose money. Here are the
principal risks to consider:
MARKET RISK -- By investing in stocks, the Fund will expose you to risks
that could cause you to lose money, particularly a sudden decline in a
holding's share price or an overall decline in the stock market. As with
any stock fund, the value of your investment in the Fund will fluctuate
on a day-to-day and a cyclical basis with movements in the stock market,
as well as in response to the activities of individual companies in which
the Fund invests. In addition, individual companies may report poor
results or be negatively affected by industry and/or economic trends and
developments. The Fund is also subject to the risk that its principal
market segment, technology growth stocks, may underperform other equity
market segments or the market as a whole.
TECHNOLOGY RISK -- Companies in the rapidly changing field of technology
face special risks. For example, their products or services may not prove
commercially successful or may become obsolete quickly. Technology
companies may also be subject to rapidly changing and uncertain
governmental regulation and policies which may have a material adverse
effect on these companies. Additionally, companies in this area may be
subject to high research and development expenses and intense competitive
pressures, and are dependent upon consumer and business acceptance of new
technologies. Because of these risks, the value of the Fund's shares may
be susceptible to greater risk and market fluctuation than an investment
in a fund that invests in a broader range of portfolio securities not
concentrated in any particular area. As such, the Fund is not an
appropriate investment for individuals who are not long-term investors
and who, as their primary objective, require safety of principal or
stable income from their investments.
4
<PAGE>
PAST PERFORMANCE
Prior to the date of this prospectus, Class A shares of the Fund have not
been offered for sale. Returns for the Class A shares will be presented
after January 1, 2002, when the Class A shares will have been in
operation for one complete calendar year (I.E., January-December).
5
<PAGE>
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses you may pay if you buy and
hold shares of the Fund. You pay no sales charges or transaction fees for
buying or selling shares of the Fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
<TABLE>
<S> <C> <C>
Management Fee* 0.85%
Distribution (12b-1) Fee 0.30%
Other Expenses
Shareholder Servicing Fee 0.25%
Other Fund Expenses** 0.24%
Total Other Expenses** 0.49%
-----
Total Annual Fund Operating Expenses*** 1.64%
</TABLE>
* The "Management Fee" is an annual fee, payable monthly out of the Fund's
net assets.
** Estimated for the current fiscal year.
*** The "Total Annual Fund Operating Expenses" is an estimate and may be
higher or lower than that outlined above. The investment manager has
voluntarily agreed to limit its fees or reimburse the Fund for expenses
to the extent necessary to keep Total Annual Fund Operating Expenses at
or below 1.50%. Any fee reductions or reimbursements may be repaid to the
investment manager within 3 years after they occur if such repayments can
be achieved within the Fund's then current expense limit, if any, for
that year and if certain other conditions are satisfied.
6
<PAGE>
EXAMPLE
The Example is intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds. It assumes that
you invest $10,000 in the Fund for the time periods indicated and then
redeem all of your shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. The Example should not be
considered a representation of past or future expenses or performance.
Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
<TABLE>
<CAPTION>
1 Year 3 Years
--------------- -------
<S> <C>
$167 $517
</TABLE>
7
<PAGE>
MANAGEMENT OF THE FUND
INVESTMENT MANAGER
City National Investments ("CNI"), the trust and investment division of
City National Bank ("CNB"), is the Fund's investment manager. As
investment manager, CNI provides the Fund with investment management
services. CNI has provided trust and fiduciary services, including
investment management services, to individuals and businesses for over 30
years. CNI currently provides investment management services to
individuals, pension and profit sharing plans, endowments, and
foundations. As of June 30, 2000, CNI had approximately $15.5 billion in
assets under administration, which includes $5.3 billion in assets under
management.
CNB, founded in the early 1950's, is a federally chartered commercial
bank with approximately $8.6 billion in assets as of June 30, 2000. It is
a wholly-owned subsidiary of City National Corporation, a New York Stock
Exchange listed company. CNB's address is City National Center, 400 North
Roxbury Drive, Beverly Hills, California 90210.
CNI receives for its investment management services a fee equal to 0.85%
of the Fund's average daily net assets.
PORTFOLIO MANAGEMENT
All investment decisions for the Fund are made by a team of investment
professionals, CNI's Equity Team, all of whom take an active part in the
decision making process.
8
<PAGE>
ADMINISTRATOR, FUND ACCOUNTANT AND TRANSFER AGENT
SEI Investments Mutual Funds Services (the "Administrator") serves as
administrator and fund accountant to the Fund. The Administrator is
located at One Freedom Valley Drive, Oaks, Pennsylvania 19456. Pursuant
to a separate agreement with the Administrator, CNB performs
sub-administration services on behalf of the Fund, for which it receives
a fee paid by the Administrator at the annual rate of up to 0.075% of the
average daily net assets of the Fund. SEI Investments Fund Management
(the "Transfer Agent") serves as transfer agent for the Fund. The
Transfer Agent is located at 530 East Swedesford Road, Wayne,
Pennsylvania 19087. Both can be reached at 1-888-889-0799.
DISTRIBUTOR
SEI Investments Distribution Co. (the "Distributor") serves as the Fund's
distributor pursuant to a distribution agreement with the Fund. The
Distributor is located at One Freedom Valley Drive, Oaks, Pennsylvania,
19456 and can be reached at 1-888-889-0799.
9
<PAGE>
ADDITIONAL INVESTMENT STRATEGIES AND RELATED RISKS
The following risks of the Fund are related to investment strategies that
are material but not fundamental strategies of the Fund. These risks are
in addition to the principal risks of the Fund discussed above. See
"Overview -- Principal Risks of Investing in Our Fund."
DEFENSIVE INVESTMENTS -- The Fund may, from time to time, take temporary
defensive positions that are inconsistent with the Fund's principal
investment strategies in attempting to respond to or to anticipate
adverse market, economic, political or other conditions. If the Fund
takes such a temporary defensive position, it may not achieve its
investment objective.
SMALLER CAPITALIZED COMPANIES -- The investment manager believes that
smaller capitalized companies generally have greater earnings and sales
growth potential than larger capitalized companies. The level of risk
will be increased to the extent that the Fund has significant exposure to
smaller capitalized or unseasoned companies (those with less than a
three-year operating history). Investments in smaller capitalized
companies may involve greater risks, such as limited product lines,
markets and financial or managerial resources. In addition, less
frequently-traded securities may be subject to more abrupt price
movements than securities of larger capitalized companies.
FOREIGN SECURITIES -- Foreign investments may be subject to risks that
are not typically associated with investing in U.S. companies or markets.
For example, such investment may be adversely affected by changes in
currency rates and exchange control regulations, political and economic
developments and the possibility of seizure or nationalization of
companies, or the imposition of withholding taxes on income. In addition,
foreign corporations are generally subject to accounting standards which
are different and less rigorous than U.S. standards. Foreign markets also
tend to be more volatile than the U.S. market due to economic and
political instability and regulatory conditions in some countries.
Although the Fund will only invest in U.S. dollar denominated American
Depository Receipts, the securities underlying the Receipts will
generally be denominated in foreign currencies, whose value may decline
against the U.S. dollar.
10
<PAGE>
PORTFOLIO TURNOVER -- We will sell a security when we believe it is
appropriate to do so, regardless of how long the Fund has owned that
security. Buying and selling securities generally involves some expense
to the Fund, such as commissions paid to brokers and other transaction
costs. By selling a security, the Fund may realize taxable capital gains
that it will subsequently distribute to shareholders. Generally speaking,
the higher the Fund's annual portfolio turnover, the greater its
brokerage costs and the greater the likelihood that it will realize
taxable capital gains. Increased brokerage costs may adversely affect the
Fund's performance. Also, unless you are a tax-exempt investor or you
purchase shares through a tax-deferred account, the distribution of
capital gains may affect your after-tax return. Annual portfolio turnover
of 100% or more is considered high. We anticipate typical annual
portfolio turnover of less than 100% for the Fund.
11
<PAGE>
ACCOUNT POLICIES
HOW WE PRICE SHARES -- How and when we calculate the Fund's price or net
asset value ("NAV") determines the price at which you will buy or sell
shares. We calculate the Fund's NAV by dividing the total net value of
its assets by the number of outstanding shares. We base the value of the
Fund's investments on their market value, usually the last price reported
for each security before the close of market that day. A market price may
not be available for securities that trade infrequently. Occasionally, an
event that affects a security's value may occur after the market closes.
In this case, we, subject to the supervision of the Fund's Board of
Trustees, will make a good-faith estimate of the security's "fair value,"
which may be higher or lower than the security's closing price in its
relevant market.
WHEN SHARES ARE PRICED -- We calculate the NAV of the Fund after the
close of trading on the New York Stock Exchange (the "NYSE") every day
the NYSE is open. Shares may be purchased or sold on any day that the New
York Stock Exchange and the Federal Reserve are open for business.
Shares, however, cannot be purchased or sold by Federal Reserve wire on
days when either the New York Stock Exchange or Federal Reserve is
closed. The NYSE usually closes at 4:00 p.m. Eastern time on weekdays,
except for holidays. More details about how we calculate the Fund's NAV
are in the Statement of Additional Information.
If we receive your purchase or sale order from your Authorized
Institution by close of trading on the NYSE, we will price your order at
that day's NAV. If we receive your order after close of trading on the
NYSE, we will price your order at the next day's NAV.
DISTRIBUTION PLAN -- The Fund has adopted a plan (the "Plan") for its
Class A shares under Rule 12b-1 of the Investment Company Act. The Plan
allows the Fund to pay distribution fees of 0.30% of average daily net
assets for the sale and distribution of its shares. Although the Fund
does not have a front-end load, because the distribution fees are paid
out of the Fund's assets on an on-
12
<PAGE>
going basis, over time these fees will increase the cost of your
investment and may cost you more than paying other types of sales
charges.
SHAREHOLDER SERVICES -- The Fund has adopted a shareholder service plan
that allows the Fund to pay fees for services provided to Class A
shareholders. Because these fees are paid out of the Fund's assets
continuously, over time these fees will increase the cost of your
investment. Shareholder servicing fees under that plan, as a percentage
of average daily net assets, are 0.25% for Class A shares of the Fund.
If you have any questions about the Fund, please call the Fund at
1-888-889-0799.
13
<PAGE>
UNDERSTANDING EARNINGS AND TAXES
DIVIDENDS AND DISTRIBUTIONS -- IRS rules require that the Fund distribute
substantially all of its net investment income and capital gains, if any,
to shareholders. You may receive income dividends and capital-gain
distributions for which you will owe taxes even if you choose to reinvest
the dividends and distributions (unless you invest solely through a
tax-advantaged account such as an IRA or a 401(k) plan). Income dividends
and capital-gain distributions are paid to all shareholders who maintain
accounts with the Fund as of each dividend or distribution record date.
TAX CONSIDERATIONS -- Capital gains may be taxable at different rates
depending upon the length of time the Fund holds its assets. We will
inform you about the character of any dividends and capital gains upon
payment. After the close of each calendar year, we will advise you of the
tax status of distributions. The Fund's distributions, whether received
in cash or reinvested, may be taxable. Any redemption of the Fund's
shares or any exchange of the Fund's shares for another Fund will be
treated as a sale, and any gain on the transaction may be taxable. BE
SURE TO CONSULT YOUR TAX ADVISOR ABOUT THE SPECIFIC TAX IMPLICATIONS OF
YOUR INVESTMENTS. FOR ADDITIONAL INFORMATION REGARDING TAX
CONSIDERATIONS, SEE THE SAI.
DISTRIBUTION OPTIONS -- We will automatically reinvest your dividends in
additional full or fractional Fund shares, unless you instruct your
Authorized Institution in writing prior to the date of distribution of
your election to receive payment in cash. Your election will be effective
for all dividends and distributions paid after your Authorized
Institution receives your written notice. To cancel your election, please
send your Authorized Institution another written notice. Proceeds from
distributions will normally be wired to your broker-dealer or financial
institution on the business day after distributions are credited to your
account.
14
<PAGE>
DECLARING AND PAYING DIVIDENDS -- We will declare and pay dividends, if
any, on the last business day of each calendar quarter, and pay net
capital gain, if any, in the last quarter of each calendar year.
BACKUP WITHHOLDING -- You must provide your broker-dealer or financial
institution with your social security or tax identification number on
your account application form and specify whether or not you are subject
to backup withholding. Otherwise, you may be subject to backup
withholding at a rate of 31%.
HOW TO AVOID "BUYING A DIVIDEND" -- If you plan to purchase shares in the
Fund, check if it is planning to make a distribution in the near future.
If you do not check, and you buy shares of the Fund just before a
distribution, you will pay full price for the shares but receive a
portion of your purchase price back as a taxable distribution. This is
called "buying a dividend." Unless you hold the Fund in a tax-deferred
account, you will have to include the distribution in your gross income
for tax purposes, even though you may have not participated in the Fund's
appreciation.
15
<PAGE>
HOW TO BUY AND SELL SHARES
Here are the details you should know about buying and selling shares:
HOW TO PLACE AN ORDER
You may place an order with:
- an approved broker-dealer; or
- any other approved financial institution.
ORDERING THROUGH A BROKER-DEALER OR FINANCIAL INSTITUTION (EACH AN
"AUTHORIZED INSTITUTION") -- You may purchase, sell or exchange shares
through accounts with Authorized Institutions that are authorized to
place trades in Fund shares for their customers. You will have to follow
the procedures of your Authorized Institution. Your Authorized
Institution may charge a fee for its services, in addition to the fees
charged by the Fund. You will also generally have to address your
correspondence or questions regarding the Fund to your Authorized
Institution.
WHEN TO SEND YOUR ORDER -- If we receive your purchase or sale order from
your Authorized Institution by close of trading on the NYSE, we will
price your order at that day's NAV. If we receive your order after close
of trading on the NYSE, we will price your order at the next day's NAV.
The NYSE usually closes at 4:00 p.m. Eastern time on weekdays, except for
holidays.
You may have to transmit purchase, sale or exchange requests to your
Authorized Institution at an earlier time than close of business of the
NYSE for your transaction to become effective that day. This allows the
Authorized Institution time to process your request and transmit it to
the Fund. You should contact your Authorized Institution directly for
more information about how to purchase, sell or exchange Fund shares
through your Authorized Institution. This information will include how
much earlier than close of business of the NYSE you need to place your
order with your Authorized
16
<PAGE>
Institution and the information needed by your Authorized Institution to
properly to complete your order.
PURCHASE MINIMUMS AND MINIMUM ACCOUNT BALANCES -- Your Authorized
Institution may buy shares of the Fund for an initial amount of $100,000.
This is the required minimum account balance. It may buy additional
shares for $1,000 or more. In order to reach or maintain these purchase
and account minimums, your Authorized Institution may aggregate your
purchase with the purchases of its other clients. Exceptions to the
purchase and account minimums may be made at our discretion.
You will have to comply with the purchase and account balance minimums of
your Authorized Institution. Contact your Authorized Institution for more
information.
PAYMENT OPTIONS -- Consult with your Authorized Institution about their
acceptable methods of payment.
BUYING SHARES
FIRST TIME AND SUBSEQUENT PURCHASES -- You will have to follow your
Authorized Institution's procedures for transacting with the Fund.
Contact your Authorized Institution for more information.
WIRING FEE -- The Authorized Institution placing your order may charge
its own wiring fees.
SELLING SHARES
GENERAL INFORMATION -- You may sell your shares through your Authorized
Institution. You will have to follow their procedures. Contact your
Authorized Institution for more information.
GENERAL RESTRICTIONS -- We may suspend the right to sell shares or
postpone payment for a sale of shares when either the New York Stock
Exchange or the Federal Reserve's Fedline System is closed or restricted.
17
<PAGE>
OTHER REDEMPTION OPTIONS -- Under conditions where cash redemptions are
detrimental to the Fund and its shareholders, we reserve the right to
make redemptions in readily marketable securities other than cash. In
unusual circumstances, the Fund may temporarily suspend the processing of
sell requests, or postpone payments of proceeds, as permitted by federal
securities laws. Please see the SAI for a more detailed discussion.
EXCHANGING SHARES
You may exchange shares of the Fund for Class A shares of any other CNI
Charter Fund in which you are eligible to invest. You should contact the
Authorized Institution through which you purchased your shares and follow
its instructions to place an exchange order. When you exchange shares,
you are really selling your shares and buying other shares, so your sale
price and purchase price will be based on the NAV next calculated after
we receive your exchange request.
18
<PAGE>
IMPORTANT TERMS TO KNOW
"We", "Us" and "Our" means the CNI Charter Funds.
"You" and "Your" means the prospective investor or current shareholder.
19
<PAGE>
FOR MORE INFORMATION
CNI CHARTER TECHNOLOGY GROWTH FUND
Additional information is available free of charge in the STATEMENT OF
ADDITIONAL INFORMATION ("SAI"). The SAI is incorporated by reference (legally
considered part of this document). In the Fund's Annual Report, you will find a
discussion of the market conditions and investment strategies that significantly
affected the Fund's performance during its last fiscal year. Additional
information about the Fund's investments is available in the Fund's Annual and
Semi-Annual Reports to shareholders. To receive a free copy of this Prospectus,
the SAI, or the Annual or Semi-Annual Reports (when available), please contact:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
1-888-889-0799
INFORMATION ABOUT THE FUND MAY BE REVIEWED AND COPIED:
- at the SEC's Public Reference Room in Washington, D.C. at 1-202-942-8090;
- on the EDGAR database on the SEC's Internet site at www.sec.gov; or
- by written request (including duplication fee) to the Public Reference
Section of the SEC, Washington, D.C. 20549-6009, or by electronic request at
[email protected].
IF YOU HAVE QUESTIONS ABOUT THE FUND, PLEASE CALL 1-888-889-0799.
The Fund's Investment Company Act file number: 811-07923.
[LOGO]
TECHNOLOGY GROWTH FUND
CLASS A
PROSPECTUS
DATED OCTOBER 1, 2000
CNI-F-024-01
<PAGE>
[LOGO]
TECHNOLOGY GROWTH FUND
INSTITUTIONAL CLASS
PROSPECTUS
DATED OCTOBER 1, 2000
INVESTMENT MANAGER:
CITY NATIONAL INVESTMENTS
A division of City National Bank
The Securities and Exchange Commission has not approved or
disapproved
these securities or passed upon the accuracy or adequacy of this
Prospectus.
Any representation to the contrary is a criminal offense.
------------------------------------------------------------------------------
MUTUAL FUND SHARES ARE NOT FDIC INSURED. MUTUAL FUND SHARES ARE
NOT BANK DEPOSITS, NOR ARE THEY OBLIGATIONS OF, OR GUARANTEED BY,
CITY NATIONAL BANK. INVESTING IN MUTUAL FUNDS INVOLVES RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<S> <C>
Overview........................................... 2
Management of the Fund............................. 8
Additional Investment Strategies and Related
Risks............................................ 10
Account Policies................................... 12
Understanding Earnings and Taxes................... 13
How to Buy and Sell Shares......................... 15
Important Terms to Know............................ 18
For More Information ....................... back cover
</TABLE>
More detailed information on all subjects covered in this simplified Prospectus
is contained within the STATEMENT OF ADDITIONAL INFORMATION ("SAI"). Investors
seeking more in-depth explanations of the Fund should request the SAI and review
it before purchasing shares.
This Prospectus offers Institutional Class shares of the Technology Growth Fund
(the "Fund"). Only financial institutions and financial intermediaries may
purchase Institutional Class shares for their own account or on behalf of their
customers. The Fund offers other classes of shares which are subject to the same
management fee and other expenses but may be subject to different distribution
and/or shareholder servicing costs.
1
<PAGE>
OVERVIEW
OUR GOAL
The Fund seeks to provide long-term capital appreciation by investing
primarily in U.S. corporations and U.S. dollar denominated American
Depository Receipts of foreign corporations with the potential for growth
which engage in technology-focused businesses. The goal of the Fund can
only be changed with shareholder approval.
PRINCIPAL STRATEGY
We purchase a diversified portfolio at least 65% of which consists of
securities of U.S. corporations of any size and U.S. dollar denominated
American Depository Receipts of foreign corporations of any size that are
engaged in the production, distribution and development of products or
services based on technology and which the Fund's investment manager
believes should benefit significantly from advances or improvements in
technology. Although the Fund will generally invest primarily in large
capitalization companies (I.E., companies with a market capitalization
over $5 billion), the Fund may also invest a significant portion of its
assets in companies with smaller capitalizations. The investment manager
uses a combination of quantitative and fundamental analysis to select
companies with share price growth potential that may not be recognized by
the market at large. The companies generally:
- have or are expected to develop products, processes or services
that should provide significant technological advancements or
improvements, and/or
- rely extensively on technology in connection with their
operations or services.
2
<PAGE>
The Fund will be diversified across a number of sectors and industries
within the technology area, and will not concentrate its investments in
any particular industry or group of related industries. As a result, the
Fund may have more flexibility to invest in companies that the investment
manager believes should benefit from advancements or improvements in
technology in a number of industries. Nevertheless, the Fund may hold a
significant portion of its assets in industries such as electronics, the
Internet, aerospace/defense, biotechnology, computers, office/business
equipment, semiconductors, fiber optics, software, telecommunications,
telecommunications equipment and technology consulting.
The Fund may invest substantially all of its assets in common stocks. The
Fund may also engage in futures and options transactions for hedging and
risk management purposes.
3
<PAGE>
PRINCIPAL RISKS OF INVESTING IN OUR FUND
As with any mutual fund, there are risks to investing. We cannot
guarantee that we will meet our investment goal. The Fund may expose you
to certain risks that could cause you to lose money. Here are the
principal risks to consider:
MARKET RISK -- By investing in stocks, the Fund will expose you to risks
that could cause you to lose money, particularly a sudden decline in a
holding's share price or an overall decline in the stock market. As with
any stock fund, the value of your investment in the Fund will fluctuate
on a day-to-day and a cyclical basis with movements in the stock market,
as well as in response to the activities of individual companies in which
the Fund invests. In addition, individual companies may report poor
results or be negatively affected by industry and/or economic trends and
developments. The Fund is also subject to the risk that its principal
market segment, technology growth stocks, may underperform other equity
market segments or the market as a whole.
TECHNOLOGY RISK -- Companies in the rapidly changing field of technology
face special risks. For example, their products or services may not prove
commercially successful or may become obsolete quickly. Technology
companies may also be subject to rapidly changing and uncertain
governmental regulation and policies which may have a material adverse
effect on these companies. Additionally, companies in this area may be
subject to high research and development expenses and intense competitive
pressures, and are dependent upon consumer and business acceptance of new
technologies. Because of these risks, the value of the Fund's shares may
be susceptible to greater risk and market fluctuation than an investment
in a fund that invests in a broader range of portfolio securities not
concentrated in any particular area. As such, the Fund is not an
appropriate investment for individuals who are not long-term investors
and who, as their primary objective, require safety of principal or
stable income from their investments.
4
<PAGE>
PAST PERFORMANCE
Prior to the date of this prospectus, Institutional Class shares of the
Fund have not been offered for sale. Returns for the Institutional Class
shares will be presented after January 1, 2002, when the Institutional
Class shares will have been in operation for one complete calendar year
(I.E., January-December).
5
<PAGE>
FEES AND EXPENSES OF THE FUND
This table describes the fees and expenses you may pay if you buy and
hold shares of the Fund. You pay no sales charges or transaction fees for
buying or selling shares of the Fund.
ANNUAL FUND OPERATING EXPENSES
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
<TABLE>
<S> <C> <C>
Management Fee* 0.85%
Other Expenses
Shareholder Servicing Fee 0.25%
Other Fund Expenses** 0.24%
Total Other Expenses** 0.49%
-----
Total Annual Fund Operating Expenses*** 1.34%
</TABLE>
* The "Management Fee" is an annual fee, payable monthly out of the Fund's
net assets.
** Estimated for the current fiscal year.
*** The "Total Annual Fund Operating Expenses" is an estimate and may be
higher or lower than that outlined above. The investment manager has
voluntarily agreed to limit its fees or reimburse the Fund for expenses
to the extent necessary to keep Total Annual Fund Operating Expenses at
or below 1.20%. Any fee reductions or reimbursements may be repaid to the
investment manager within 3 years after they occur if such repayments can
be achieved within the Fund's then current expense limit, if any, for
that year and if certain other conditions are satisfied.
6
<PAGE>
EXAMPLE
The Example is intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds. It assumes that
you invest $10,000 in the Fund for the time periods indicated and then
redeem all of your shares at the end of those periods. The Example also
assumes that your investment has a 5% return each year and that the
Fund's operating expenses remain the same. The Example should not be
considered a representation of past or future expenses or performance.
Although your actual costs may be higher or lower, based on these
assumptions your costs would be:
<TABLE>
<CAPTION>
1 Year 3 Years
--------------- -------
<S> <C>
$136 $425
</TABLE>
7
<PAGE>
MANAGEMENT OF THE FUND
INVESTMENT MANAGER
City National Investments ("CNI"), the trust and investment division of
City National Bank ("CNB"), is the Fund's investment manager. As
investment manager, CNI provides the Fund with investment management
services. CNI has provided trust and fiduciary services, including
investment management services, to individuals and businesses for over 30
years. CNI currently provides investment management services to
individuals, pension and profit sharing plans, endowments, and
foundations. As of June 30, 2000, CNI had approximately $15.5 billion in
assets under administration, which includes $5.3 billion in assets under
management.
CNB, founded in the early 1950's, is a federally chartered commercial
bank with approximately $8.6 billion in assets as of June 30, 2000. It is
a wholly-owned subsidiary of City National Corporation, a New York Stock
Exchange listed company. CNB's address is City National Center, 400 North
Roxbury Drive, Beverly Hills, California 90210.
CNI receives for its investment management services a fee equal to 0.85%
of the Fund's average daily net assets.
PORTFOLIO MANAGEMENT
All investment decisions for the Fund are made by a team of investment
professionals, CNI's Equity Team, all of whom take an active part in the
decision making process.
8
<PAGE>
ADMINISTRATOR, FUND ACCOUNTANT AND TRANSFER AGENT
SEI Investments Mutual Funds Services (the "Administrator") serves as
administrator and fund accountant to the Fund. The Administrator is
located at One Freedom Valley Drive, Oaks, Pennsylvania 19456. Pursuant
to a separate agreement with the Administrator, CNB performs
sub-administration services on behalf of the Fund, for which it receives
a fee paid by the Administrator at the annual rate of up to 0.075% of the
average daily net assets of the Fund. SEI Investments Fund Management
(the "Transfer Agent") serves as transfer agent for the Fund. The
Transfer Agent is located at 530 East Swedesford Road, Wayne,
Pennsylvania 19087. Both can be reached at 1-888-889-0799.
DISTRIBUTOR
SEI Investments Distribution Co. (the "Distributor") serves as the Fund's
distributor pursuant to a distribution agreement with the Fund. The
Distributor is located at One Freedom Valley Drive, Oaks, Pennsylvania,
19456 and can be reached at 1-888-889-0799.
9
<PAGE>
ADDITIONAL INVESTMENT STRATEGIES AND RELATED RISKS
The following risks of the Fund are related to investment strategies that
are material but not principal strategies of the Fund. These risks are in
addition to the principal risks of the Fund discussed above. See
"Overview -- Principal Risks of Investing in Our Fund."
DEFENSIVE INVESTMENTS -- The Fund may, from time to time, take temporary
defensive positions that are inconsistent with the Fund's principal
investment strategies in attempting to respond to or to anticipate
adverse market, economic, political or other conditions. If the Fund
takes such a temporary defensive position, it may not achieve its
investment objective.
SMALLER CAPITALIZED COMPANIES -- The investment manager believes that
smaller capitalized companies generally have greater earnings and sales
growth potential than larger capitalized companies. The level of risk
will be increased to the extent that the Fund has significant exposure to
smaller capitalized or unseasoned companies (those with less than a
three-year operating history). Investments in smaller capitalized
companies may involve greater risks, such as limited product lines,
markets and financial or managerial resources. In addition, less
frequently-traded securities may be subject to more abrupt price
movements than securities of larger capitalized companies.
FOREIGN SECURITIES -- Foreign investments may be subject to risks that
are not typically associated with investing in U.S. companies or markets.
For example, such investment may be adversely affected by changes in
currency rates and exchange control regulations, political and economic
developments and the possibility of seizure or nationalization of
companies, or the imposition of withholding taxes on income. In addition,
foreign corporations are generally subject to accounting standards which
are different and less rigorous than U.S. standards. Foreign markets also
tend to be more volatile than the U.S. market due to economic and
political instability and regulatory conditions in some countries.
Although the Fund will only invest in U.S. dollar denominated American
Depository Receipts, the securities underlying the Receipts will
generally be denominated in foreign currencies, whose value may decline
against the U.S. dollar.
10
<PAGE>
PORTFOLIO TURNOVER -- We will sell a security when we believe it is
appropriate to do so, regardless of how long the Fund has owned that
security. Buying and selling securities generally involves some expense
to the Fund, such as commissions paid to brokers and other transaction
costs. By selling a security, the Fund may realize taxable capital gains
that it will subsequently distribute to shareholders. Generally speaking,
the higher the Fund's annual portfolio turnover, the greater its
brokerage costs and the greater the likelihood that it will realize
taxable capital gains. Increased brokerage costs may adversely affect the
Fund's performance. Also, unless you are a tax-exempt investor or you
purchase shares through a tax-deferred account, the distribution of
capital gains may affect your after-tax return. Annual portfolio turnover
of 100% or more is considered high. We anticipate typical annual
portfolio turnover of less than 100% for the Fund.
11
<PAGE>
ACCOUNT POLICIES
HOW WE PRICE SHARES -- How and when we calculate the Fund's price or net
asset value ("NAV") determines the price at which you will buy or sell
shares. We calculate the Fund's NAV by dividing the total net value of
its assets by the number of outstanding shares. We base the value of the
Fund's investments on their market value, usually the last price reported
for each security before the close of market that day. A market price may
not be available for securities that trade infrequently. Occasionally, an
event that affects a security's value may occur after the market closes.
In this case, we, subject to the supervision of the Fund's Board of
Trustees, will make a good-faith estimate of the security's "fair value,"
which may be higher or lower than the security's closing price in its
relevant market.
WHEN SHARES ARE PRICED -- We calculate the NAV of the Fund after the
close of trading on the New York Stock Exchange (the "NYSE") every day
the NYSE is open. Shares may be purchased or sold on any day that the New
York Stock Exchange and the Federal Reserve are open for business.
Shares, however, cannot be purchased or sold by Federal Reserve wire on
days when either the New York Stock Exchange or Federal Reserve is
closed. The NYSE usually closes at 4:00 p.m. Eastern time on weekdays,
except for holidays. More details about how we calculate the Fund's NAV
are in the Statement of Additional Information.
If we receive your purchase or sale order from your Authorized
Institution by close of trading on the NYSE, we will price your order at
that day's NAV. If we receive your order after close of trading on the
NYSE, we will price your order at the next day's NAV.
SHAREHOLDER SERVICES -- The Fund has adopted a shareholder service plan
that allows the Fund to pay fees for services provided to Institutional
Class shareholders. Because these fees are paid out of the Fund's assets
continuously, over time these fees will increase the cost of your
investment. Shareholder servicing fees under that plan, as a percentage
of average daily net assets, are 0.25% for Institutional Class shares of
the Fund.
If you have any questions about the Fund, please call the Fund at
1-888-889-0799.
12
<PAGE>
UNDERSTANDING EARNINGS AND TAXES
DIVIDENDS AND DISTRIBUTIONS -- IRS rules require that the Fund distribute
substantially all of its net investment income and capital gains, if any,
to shareholders. You may receive income dividends and capital-gain
distributions for which you will owe taxes even if you choose to reinvest
the dividends and distributions (unless you invest solely through a
tax-advantaged account such as an IRA or a 401(k) plan). Income dividends
and capital-gain distributions are paid to all shareholders who maintain
accounts with the Fund as of each dividend or distribution record date.
TAX CONSIDERATIONS -- Capital gains may be taxable at different rates
depending upon the length of time the Fund holds its assets. We will
inform you about the character of any dividends and capital gains upon
payment. After the close of each calendar year, we will advise you of the
tax status of distributions. The Fund's distributions, whether received
in cash or reinvested, may be taxable. Any redemption of the Fund's
shares or any exchange of the Fund's shares for another Fund will be
treated as a sale, and any gain on the transaction may be taxable. BE
SURE TO CONSULT YOUR TAX ADVISOR ABOUT THE SPECIFIC TAX IMPLICATIONS OF
YOUR INVESTMENTS. FOR ADDITIONAL INFORMATION REGARDING TAX
CONSIDERATIONS, SEE THE SAI.
DISTRIBUTION OPTIONS -- We will automatically reinvest your dividends in
additional full or fractional Fund shares, unless you instruct your
Authorized Institution in writing prior to the date of distribution of
your election to receive payment in cash. Your election will be effective
for all dividends and distributions paid after your Authorized
Institution receives your written notice. To cancel your election, please
send your Authorized Institution another written notice. Proceeds from
distributions will normally be wired to your broker-dealer or financial
institution on the business day after distributions are credited to your
account.
13
<PAGE>
DECLARING AND PAYING DIVIDENDS -- We will declare and pay dividends, if
any, on the last business day of each calendar quarter, and pay net
capital gain, if any, in the last quarter of each calendar year.
BACKUP WITHHOLDING -- You must provide your broker-dealer or financial
institution with your social security or tax identification number on
your account application form and specify whether or not you are subject
to backup withholding. Otherwise, you may be subject to backup
withholding at a rate of 31%.
HOW TO AVOID "BUYING A DIVIDEND" -- If you plan to purchase shares in the
Fund, check if it is planning to make a distribution in the near future.
If you do not check, and you buy shares of the Fund just before a
distribution, you will pay full price for the shares but receive a
portion of your purchase price back as a taxable distribution. This is
called 'buying a dividend.' Unless you hold the Fund in a tax-deferred
account, you will have to include the distribution in your gross income
for tax purposes, even though you may have not participated in the Fund's
appreciation.
14
<PAGE>
HOW TO BUY AND SELL SHARES
Here are the details you should know about buying and selling shares:
HOW TO PLACE AN ORDER
You may place an order with:
- an approved broker-dealer; or
- any other approved financial institution.
ORDERING THROUGH A BROKER-DEALER OR FINANCIAL INSTITUTION (EACH AN
"AUTHORIZED INSTITUTION") -- You may purchase, sell or exchange shares
through accounts with Authorized Institutions that are authorized to
place trades in Fund shares for their customers. You will have to follow
the procedures of your Authorized Institution. Your Authorized
Institution may charge a fee for its services, in addition to the fees
charged by the Fund. You will also generally have to address your
correspondence or questions regarding the Fund to your Authorized
Institution.
WHEN TO SEND YOUR ORDER -- If we receive your purchase or sale order from
your Authorized Institution by close of trading on the NYSE, we will
price your order at that day's NAV. If we receive your order after close
of trading on the NYSE, we will price your order at the next day's NAV.
The NYSE usually closes at 4:00 p.m. Eastern time on weekdays, except for
holidays.
You may have to transmit purchase, sale or exchange requests to your
Authorized Institution at an earlier time than close of business of the
NYSE for your transaction to become effective that day. This allows the
Authorized Institution time to process your request and transmit it to
the Fund. You should contact your Authorized Institution directly for
more information about how to purchase, sell or exchange Fund shares
through your Authorized Institution. This information will include how
much earlier than close of business of the NYSE you need to place your
order with your Authorized
15
<PAGE>
Institution and the information needed by your Authorized Institution to
properly to complete your order.
PURCHASE MINIMUMS AND MINIMUM ACCOUNT BALANCES -- Your Authorized
Institution may buy shares of the Fund for an initial amount of $100,000.
This is the required minimum account balance. It may buy additional
shares for $1,000 or more. In order to reach or maintain these purchase
and account minimums, your Authorized Institution may aggregate your
purchase with the purchases of its other clients. Exceptions to the
purchase and account minimums may be made at our discretion.
You will have to comply with the purchase and account balance minimums of
your Authorized Institution. Contact your Authorized Institution for more
information.
PAYMENT OPTIONS -- Consult with your Authorized Institution about their
acceptable methods of payment.
BUYING SHARES
FIRST TIME AND SUBSEQUENT PURCHASES -- You will have to follow your
Authorized Institution's procedures for transacting with the Fund.
Contact your Authorized Institution for more information.
WIRING FEE -- The Authorized Institution placing your order may charge
its own wiring fees.
SELLING SHARES
GENERAL INFORMATION -- You may sell your shares through your Authorized
Institution. You will have to follow their procedures. Contact your
Authorized Institution for more information.
GENERAL RESTRICTIONS -- We may suspend the right to sell shares or
postpone payment for a sale of shares when either the New York Stock
Exchange or the Federal Reserve's Fedline System is closed or restricted.
16
<PAGE>
OTHER REDEMPTION OPTIONS -- Under conditions where cash redemptions are
detrimental to the Fund and its shareholders, we reserve the right to
make redemptions in readily marketable securities other than cash. In
unusual circumstances, the Fund may temporarily suspend the processing of
sell requests, or postpone payments of proceeds, as permitted by federal
securities laws. Please see the SAI for a more detailed discussion.
EXCHANGING SHARES
You may exchange shares of the Fund for Institutional Class shares of any
other CNI Charter Fund in which you are eligible to invest. You should
contact the Authorized Institution through which you purchased your
shares and follow its instructions to place an exchange order. When you
exchange shares, you are really selling your shares and buying other
shares, so your sale price and purchase price will be based on the NAV
next calculated after we receive your exchange request.
17
<PAGE>
IMPORTANT TERMS TO KNOW
"We", "Us" and "Our" means the CNI Charter Funds.
"You" and "Your" means the prospective investor or current shareholder.
18
<PAGE>
FOR MORE INFORMATION
CNI CHARTER TECHNOLOGY GROWTH FUND
Additional information is available free of charge in the STATEMENT OF
ADDITIONAL INFORMATION ("SAI"). The SAI is incorporated by reference (legally
considered part of this document). In the Fund's Annual Report, you will find a
discussion of the market conditions and investment strategies that significantly
affected the Fund's performance during its last fiscal year. Additional
information about the Fund's investments is available in the Fund's Annual and
Semi-Annual Reports to shareholders. To receive a free copy of this Prospectus,
the SAI, or the Annual or Semi-Annual Reports (when available), please contact:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
1-888-889-0799
INFORMATION ABOUT THE FUND MAY BE REVIEWED AND COPIED:
- at the SEC's Public Reference Room in Washington, D.C. at 1-202-942-8090;
- on the EDGAR database on the SEC's Internet site at www.sec.gov; or
- by written request (including duplication fee) to the Public Reference
Section of the SEC, Washington, D.C. 20549-6009, or by electronic request at
[email protected].
IF YOU HAVE QUESTIONS ABOUT THE FUND, PLEASE CALL 1-888-889-0799.
The Fund's Investment Company Act file number: 811-07923.
[LOGO]
TECHNOLOGY GROWTH FUND
INSTITUTIONAL CLASS
PROSPECTUS
DATED OCTOBER 1, 2000
CNI-F-023-01
