MEMORIAL FUNDS
GOVERNMENT BOND FUND
INSTITUTIONAL SHARES
Supplement Dated January 1, 2001 to
Prospectus Dated May 1, 2000
1. On September 18, 2000, the sub-adviser for Government Bond Fund (the "Fund")
began managing the Fund's portfolio so that under normal circumstances 100
percent of the Fund's total assets will be invested in fixed and variable rate
U.S. Government Securities, including zero coupon bonds issued or guaranteed by
the U.S. Treasury and mortgage-backed securities.
2. On November 6, 2000, the Board of Trustees (the "Board") of the Memorial
Funds (the "Trust") approved Memorial Investment Advisors, Inc. ("MIA") as the
new investment adviser for the Fund. Effective January 1, 2001, MIA will replace
Forum Investment Advisors, LLC ("FIA") as the Fund's adviser. MIA will serve as
interim investment adviser for the Fund under the same conditions and same
annual advisory fee rate as the agreement with FIA. The Trust will seek
shareholder approval of a new investment advisory agreement with MIA at a
special shareholders' meeting that is planned for March 2001. If shareholders
approve the agreement, MIA will serve as investment adviser for the Fund under
the same terms and conditions and same annual advisory fee rate as the agreement
with FIA. Page 6 of the Prospectus is amended by deleting the first paragraph
under the Section "Adviser" and replacing it with the following:
Memorial Investment Advisors, Inc. (the "Adviser"), 5847 San
Felipe, Suite 875, Houston, Texas 77057, serves as
investment adviser to the Fund. Subject to the general
control of the Board, the Adviser is responsible for, among
other things, developing a continuing investment program for
the Fund in accordance with its investment objective,
reviewing the investment strategies and policies of the Fund
and advising the Board on the selection of additional
sub-advisers. The Adviser has entered into an investment
sub-advisory agreement with the sub-adviser to exercise
investment discretion over the assets (or a portion of
assets) of the Fund. For its services, the Adviser receives
an advisory fee at an annual rate of 0.23 percent of the
average daily net assets of the Fund.
2. Effective January 1, 2001, Northern Trust Investments, Inc. ("NTI"), a
wholly-owned subsidiary of the Fund's current investment sub-adviser, The
Northern Company, will be the new investment sub-adviser to the Fund. This
transfer does not require shareholder approval as it will not result in an
increase in fees, a decrease in advisory services, or a change in investment
advisory personnel. Page 6 of the Prospectus is amended by deleting the second
paragraph under the Section "Subadviser/Portfolio Manager" and replacing it with
the following:
Northern Trust Investments, Inc. ("NTI"), 50 South LaSalle
Street, Chicago, Illinois 60675, manages the portfolio of
Government Bond Fund. NTI presently manages approximately
$82 billion in assets. NTI is a wholly-owned subsidiary of
The Northern Trust Company ("NTC"). Ms. Deborah L. Boyer is
the Fund's portfolio manager. She is a Vice President and a
senior portfolio manager for NTI and has been a member of
NTC's fixed income team since October 1999. From 1989 to
1996, she was with First Chicago NBD Corporation where she
served as a government bond trader and portfolio manager.
From 1996 to October 2000 she was a portfolio manager at T.
Rowe Price where she managed various taxable fixed income
portfolios. Ms. Boyer holds a Masters in Management -
Finance and Organizational Behavior from Northwestern
University.
<PAGE>
MEMORIAL FUNDS
CORPORATE BOND FUND
INSTITUTIONAL SHARES
Supplement Dated January 1, 2001 to
Prospectus Dated May 1, 2000
1. On November 6, 2000, the Board of Trustees (the "Board") of the Memorial
Funds (the "Trust") approved Memorial Investment Advisors, Inc. ("MIA") as the
new investment adviser for Corporate Bond Fund (the "Fund"). Effective January
1, 2001, MIA will replace Forum Investment Advisors, LLC ("FIA") as the Fund's
adviser. MIA will serve as interim investment adviser for the Fund under the
same conditions and same annual advisory fee rate as the agreement with FIA. The
Trust will seek shareholder approval of a new investment advisory agreement with
MIA at a special shareholders' meeting that is planned for March 2001. If
shareholders approve the agreement, MIA will serve as investment adviser for the
Fund under the same terms and conditions and same annual advisory fee rate as
the agreement with FIA. Page 5 of the Prospectus is amended by deleting the
first paragraph under the Section "Adviser" and replacing it with the following:
Memorial Investment Advisors, Inc. (the "Adviser"), 5847 San
Felipe, Suite 875, Houston, Texas 77057, serves as
investment adviser to the Fund. Subject to the general
control of the Board, the Adviser is responsible for, among
other things, developing a continuing investment program for
the Fund in accordance with its investment objective,
reviewing the investment strategies and policies of the Fund
and advising the Board on the selection of additional
sub-advisers. The Adviser has entered into an investment
sub-advisory agreement with the sub-adviser to exercise
investment discretion over the assets (or a portion of
assets) of the Fund. For its services, the Adviser receives
an advisory fee at an annual rate of 0.23 percent of the
average daily net assets of the Fund.
2. On November 6, 2000, the Board also approved American General Investment
Management, L.P ("American General") as the new investment sub-adviser for the
Fund. Effective January 1, 2001, American General will replace Conseco Capital
Management, Inc. ("Conseco") as the Fund's investment sub-adviser. American
General will serve as interim investment sub-adviser for the Fund under the same
conditions and same annual advisory fee rate as the agreement with Conseco. The
Trust will seek shareholder approval of a new investment sub-advisory agreement
with American General at a special shareholders' meeting that is planned for
March 2001. If shareholders approve the agreement, American General will serve
as investment sub-adviser for the Fund under the same terms and conditions and
same annual advisory fee rate as the agreement with Conseco. Page 6 of the
Prospectus is amended by deleting the second paragraph under the Section
"Subadviser/Portfolio Manager" and replacing it with the following:
American General Investment Management, L.P. ("AGIM"), 2929
Allen Parkway, Houston, Texas 77019, manages the portfolio
of Corporate Bond Fund. AGIM was formed in 1998 as a
successor to the investment management division of American
General Corporation, and is an indirect wholly owned
subsidiary of American General Corporation. AGIM also
provides investment management and advisory services to
pension and profit sharing plans, financial institutions and
other investors. Investment decisions for the Corporate Bond
Fund are made by a team of investment professionals headed
by Albert Gutierrez. Prior to joining AGIM, Mr. Gutierrez
was with Conseco Capital Management, Inc. from 1988 to April
2000. Mr. Gutierrez holds a B.S. in Economics from the
Wharton School, University of Pennsylvania.
<PAGE>
MEMORIAL FUNDS
GROWTH EQUITY FUND
INSTITUTIONAL SHARES
Supplement Dated January 1, 2001 to
Prospectus Dated May 1, 2000
On November 6, 2000, the Board of Trustees (the "Board") of the Memorial Funds
(the "Trust") approved Memorial Investment Advisors, Inc. ("MIA") as the new
investment adviser for Growth Equity Fund (the "Fund"). Effective January 1,
2001, MIA will replace Forum Investment Advisors, LLC ("FIA") as the Fund's
adviser. MIA will serve as interim investment adviser for the Fund under the
same conditions and same annual advisory fee rate as the agreement with FIA. The
Trust will seek shareholder approval of a new investment advisory agreement with
MIA at a special shareholders' meeting that is planned for March 2001. If
shareholders approve the agreement, MIA will serve as investment adviser for the
Fund under the same terms and conditions and same annual advisory fee rate as
the agreement with FIA. Page 5 of the Prospectus is amended by deleting the
first paragraph under the Section "Adviser" and replacing it with the following:
Memorial Investment Advisors, Inc. (the "Adviser"), 5847 San
Felipe, Suite 875, Houston, Texas 77057, serves as
investment adviser to the Fund. Subject to the general
control of the Board, the Adviser is responsible for, among
other things, developing a continuing investment program for
the Fund in accordance with its investment objective,
reviewing the investment strategies and policies of the Fund
and advising the Board on the selection of additional
sub-advisers. The Adviser has entered into an investment
sub-advisory agreement with the sub-adviser to exercise
investment discretion over the assets (or a portion of
assets) of the Fund. For its services, the Adviser receives
an advisory fee at an annual rate of 0.35 percent of the
average daily net assets of the Fund.
<PAGE>
MEMORIAL FUNDS
VALUE EQUITY FUND
INSTITUTIONAL SHARES
Supplement Dated January 1, 2001 to
Prospectus Dated May 1, 2000
On November 6, 2000, the Board of Trustees (the "Board") of the Memorial Funds
(the "Trust") approved Memorial Investment Advisors, Inc. ("MIA") as the new
investment adviser for Value Equity Fund (the "Fund"). Effective January 1,
2001, MIA will replace Forum Investment Advisors, LLC ("FIA") as the Fund's
adviser. MIA will serve as interim investment adviser for the Fund under the
same conditions and same annual advisory fee rate as the agreement with FIA. The
Trust will seek shareholder approval of a new investment advisory agreement with
MIA at a special shareholders' meeting that is planned for March 2001. If
shareholders approve the agreement, MIA will serve as investment adviser for the
Fund under the same terms and conditions and same annual advisory fee rate as
the agreement with FIA. Page 5 of the Prospectus is amended by deleting the
first paragraph under the Section "Adviser" and replacing it with the following:
Memorial Investment Advisors, Inc. (the "Adviser"), 5847 San
Felipe, Suite 875, Houston, Texas 77057, serves as
investment adviser to the Fund. Subject to the general
control of the Board, the Adviser is responsible for, among
other things, developing a continuing investment program for
the Fund in accordance with its investment objective,
reviewing the investment strategies and policies of the Fund
and advising the Board on the selection of additional
sub-advisers. The Adviser has entered into an investment
sub-advisory agreement with the sub-adviser to exercise
investment discretion over the assets (or a portion of
assets) of the Fund. For its services, the Adviser receives
an advisory fee at an annual rate of 0.35 percent of the
average daily net assets of the Fund.
