JohnsonFamily Funds
Supplement dated November 1, 2000
to the Statement of Additional Information
dated February 29, 2000
This supplement provides new and additional information beyond that contained in
the Statement of Additional Information and should be read in conjunction with
the Statement of Additional Information.
Effective November 1, 2000, the Board of Directors of JohnsonFamily
Funds, Inc. (the "Corporation") approved a change of the Funds' Administrator,
Distributor and Transfer Agent from Sunstone Financial Group, Inc. to SEI
Investments Mutual Funds Services as Administrator, SEI Investments Distribution
Co. as Distributor and Forum Shareholder Services, LLC as Transfer Agent for the
Funds. As a result of the changes in service providers referenced above, the
statement of additional information has been revised to reflect the following:
1. The last paragraph on page 22 of the statement of additional information
and the first two paragraphs on page 23 of the statement of additional
information are deleted in their entirety and replaced with the following
three paragraphs:
The administrator to the Funds is SEI Investments Mutual Funds
Services, 530 East Swedesford Road, Wayne, PA 19087 ("SIMFS"). SIMFS provides
various administrative and fund accounting services to the Funds, including
calculating each Fund's net asset value, pursuant to an Administration Agreement
(the "SIMFS Administration Agreement") with the Corporation on behalf of the
Funds. For its services under the SIMFS Administration Agreement, SIMFS receives
from the Funds a fee, computed daily and paid monthly, based on the Funds'
aggregate net assets, according to the following schedule, but subject to a
combined annual minimum fee for all four Funds of $300,000:
Annual Rate Aggregate Net Assets
----------- --------------------
0.18% First $250,000,000
0.12% Next $250,000,000
0.10% Over $500,000,000
The SIMFS Administration Agreement will remain in effect until October 31, 2004.
Prior to November 1, 2000, the administrator to the Funds was Sunstone
Financial Group, Inc. ("Sunstone"). Sunstone provided administrative and fund
accounting services to the Funds, similar to those being provided by SIMFS,
pursuant to an Administration and Fund Accounting Agreement with the Corporation
on behalf of the Funds (the "Sunstone Administration Agreement"). Pursuant to
the Sunstone Administration Agreement, Sunstone received from each Fund a fee,
computed daily and paid monthly, based on each Fund's average net assets at the
annual rate of 0.20%, subject to a combined annual minimum for all four Funds of
$206,000.
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For the period from March 31, 1998 (commencement of operations)
through October 31, 1998 and for the fiscal year ended October 31, 1999, the
Funds paid Sunstone the following amounts pursuant to the Sunstone
Administration Agreement:
November 1, 1998 March 31, 1998
through through
Fund October 31, 1999 October 31, 1998
---- ---------------- ----------------
Large Cap Equity Fund $ 92,164 $46,424
Small Cap Equity Fund $ 57,765 $24,982
Fixed Income Fund $123,942 $76,984
Intermediate Equity Fund $ 45,407 $23,534
2. The fourth paragraph on page 23 of the statement of additional information
is deleted in its entirety and replaced with the following paragraph:
Forum Shareholder Services, LLC, Two Portland Square, Portland, Maine
04101 ("Forum"), serves as transfer agent and dividend paying agent for the
Funds under a Transfer Agency and Services Agreement between it and the
Corporation. As transfer agent and dividend paying agent, Forum has agreed to
(i) issue and redeem shares of the Funds, (ii) make dividend and other
distributions to shareholders of the Funds, (iii) respond to correspondence by
Fund shareholders and others relating to its duties; (iv) maintain shareholder
accounts, and (v) make periodic reports to the Funds.
3. The second full paragraph on page 27 of the statement of additional
information is deleted in its entirety and replaced with the following
paragraph:
SEI Investments Distribution Co. ("SIDCO"), an affiliate of SIMFS,
acts as principal underwriter of shares of the Funds. SIDCO distributes the
shares on a "best efforts" basis. Prior to November 1, 2000 Sunstone
Distribution Services, LLC was the principal underwriter of the shares of the
Funds. The Funds' Service and Distribution Plan (the "Plan") permits the Funds
to reimburse its distributor for expenses incurred in distributing the Funds'
shares to investors, which include expenses relating to: sales representative
compensation; advertising preparation and distribution of sales literature and
prospectuses to prospective investors; implementing and operating the Plan; and
performing other promotional or administrative activities on behalf of the
Funds. Pursuant to the Plan, the Funds may reimburse its distributor for
overhead expenses incurred in distributing the Funds' shares. The Funds may not
reimburse its distributor for expenses of past fiscal years or in contemplation
of expenses for future fiscal years. The Funds may not use distribution fees
paid by one Fund to finance the distribution of shares for another Fund.
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