PROSPECTUS
dated September 29, 2000
T.O. RICHARDSON
SECTOR ROTATION FUND
and T.O. RICHARDSON FOCUSED TREND FUND
Two Bridgewater Road
Farmington, Connecticut 06032-2256
1-800-643-7477
The investment objective of the Sector Rotation Fund and the Focused Trend Fund
is to seek capital appreciation while providing some protection against down
markets. The Sector Rotation Fund's investment advisor allocates assets mainly
among equity securities of companies within industry sectors it determines have
the greatest potential for market appreciation. The Focused Trend Fund's
investment advisor allocates assets mainly among equity securities of companies
within market indexes it determines have the greatest potential for market
appreciation.
These securities have not been approved or disapproved by the Securities and
Exchange Commission nor has the Commission passed upon the accuracy or adequacy
of this Prospectus. Any representation to the contrary is a criminal offense.
<PAGE>
TABLE OF CONTENTS
Page No.
Highlights 2
Sectors the Sector Rotation Fund Will Invest In 8
Market Indexes the Focused Trend Fund Will Invest In 10
The Funds' Investment Policies 11
The Management of the Funds 14
How Fund Shares are Priced 15
Purchasing Shares of the Funds 16
Individual Retirement Accounts 18
Redeeming Shares of a Fund
Exchanging Fund Shares for Shares of other Funds 22
Dividends, Capital Gains and Tax Treatment 22
Financial Highlights for the Sector Rotation Fund 23
Additional Information 25
No person has been authorized to give any information or to make any
representations other than those contained in this Prospectus and the Statement
of Additional Information ("SAI"), and if given or made, such information or
representations may not be relied upon as having been authorized by the Funds.
This Prospectus does not constitute an offer to sell securities in any state or
jurisdiction in which such offering may not lawfully be made.
Highlights
What are each Fund's Investment Goals and Objectives?
The investment objective of each Fund is to seek capital appreciation with some
protection against down markets. To accomplish this goal, the Advisor allocates
the Sector Rotation Fund's assets mainly among the stocks of companies within
particular sectors or industries within the U.S. economy and the assets of the
Focused Trend Fund mainly among the stocks of companies included in particular
market indexes, including international indexes. The Advisor chooses sectors and
indexes based on their potential for appreciation relative to other sectors or
market indexes, and relative to the stock market as a whole. As with any mutual
fund, there is no assurance that either Fund will achieve its goal. Each Fund's
investment objective may be changed by the Trustees without shareholder
approval; however, prior to any such change, shareholders would be given notice.
What is each Fund's Investment Strategy?
The Funds' Advisor, T.O. Richardson Company, Inc. (the "Advisor"), believes that
limiting losses is as important to building capital as maximizing gains. To
accomplish this goal, the Advisor makes investments in rising markets and
industry sectors (for the Sector Rotation Fund), or in rising markets and market
indexes (for the Focused Trend Fund) and may invest portions or all of either
Fund in money market instruments for capital preservation in falling markets and
sectors (for the Sector Rotation Fund) or in falling markets and market indexes
(for the Focused Trend Fund). The Advisor does extensive quantitative
(mathematical) investment research and applies the results of this research to
its management of the Funds.
The Sector Rotation Fund invests in five or more industry sectors that offer the
greatest market appreciation during each market cycle. A market cycle is a
period of time in which market prices rise to a peak, fall to a trough and then
rise again to a baseline. Within each sector, the Sector Rotation Fund expects
to invest in five or more stocks. Within each market index, the Focused Trend
Fund expects to invest in ten or more stocks. If the Focused Trend Fund invests
in more than one market index at a time, the number of stocks held by the
Focused Trend Fund in companies in each index may be reduced. The average market
capitalization (i.e., the price of a company's stock multiplied by the number of
its outstanding shares) of the issuers of these stocks will vary widely.
The Advisor conducts extensive research to determine which sectors and market
indexes of the economy offer the most investment opportunity, and which sectors
and indexes offer the least, at any point in time. When the Advisor finds that
sectors it selected previously are facing slower or negative growth, it will
move out of these sectors. If the Advisor finds that there are no sectors of the
economy offering investment opportunity for the Sector Rotation Fund greater
than the return on short-term money market instruments, the Fund will invest in
such instruments until the situation changes. When the Advisor finds that
companies in indexes it selected previously are facing slower or negative
growth, it will move out of these indexes. If the Advisor finds that there are
no market indexes in the United States or internationally offering investment
opportunities greater than the return on short-term money market instruments,
the Fund will invest in such instruments until the situation changes.
Up to 100% of either Fund's assets can be invested in short-term money market
instruments. In such a defensive situation, the Funds may not be able to achieve
their respective investment objectives. Typically, some of each Fund's assets
may be held in short-term money market instruments and cash to pay redemption
requests and expenses of the Fund.
Descriptions of many of the sectors in which the Fund may invest are located in
the section of the prospectus called "Sectors the Sector Rotation Fund Will
Invest In". Descriptions of the market indexes in which the Focused Trend Fund
may invest are located in the section of the prospectus called "Market Indexes
the Focused Trend Fund Will Invest In".
What are the Principal Risks of Investing in the Funds?
Because the Funds can be volatile over the short-term, they are suitable for
long-term investors only and are not designed as short-term investments. The
share price of each Fund will fluctuate and may, at redemption, be worth more or
less than the initial purchase price. As a result, you could lose money by
investing in a Fund.
Investors in the Funds will be exposed to the natural market risks that exist
with any investment in equity securities, which include the possibility that
stock prices in general will decline, or that the individual stocks selected for
a Fund will decline in price. Other risks include changes in general economic
trends (e.g. employment levels, economic growth, interest rate levels, currency
exchange rates), supply and demand fluctuations, competition, the pace of
technological change and the risk of obsolescence, consumer tastes and domestic
and international economic, political and regulatory developments.
Specific Risks Associated With A Focused Trend Approach to Investment Management
Include:
Concentration in Industry Sectors. The Sector Rotation Fund's investment
strategy may call for investments of as much as 20% of the Sector Rotation
Fund's assets in each of five concentrated industry groups. There is the risk
that one or more industry groups may lose favor with investors and fall rapidly
in value due to news events that quickly affect the market's perception of the
industry.
Risks of Investing in Particular Sectors. Each industry sector is affected by
its own particular risks which may not affect other sectors. Sectors which rely
upon the development of new technology such as Biotechnology, Computers,
Electronics, Health Care and Telecommunications are particularly affected by
rapid product obsolescence, government regulation and intense competition.
Cyclical Industries, Financial Service Industries, Natural Resources and
Utilities may be subject to risks of interest rate fluctuations, market cycles
and international markets.
Specific Risks Associated With a Focused Trend Approach to Investment Management
Include:
Concentration in Index Specific Securities. The Focused Trend Fund's investment
strategy may call for investments of as much as 100% of the Focused Trend Fund's
assets in stocks within one market index. There is the risk that one or more
market index groups may lose favor with investors and fall rapidly in value due
to news events that quickly affect the market's perception of the companies
within the particular index group.
Risks of Investing in Particular Market Indexes. Each market index may be
affected by its own particular risks which may not affect other indexes. Indexes
of companies within the NASDAQ 100 Index include the largest and most active
non-financial domestic and international issues listed on the NASDAQ Stock
Market and may rely upon the development of new technology such as
Biotechnology, Computers, Electronics, Health Care and Telecommunications and
are particularly affected by rapid product obsolescence, government regulation
and intense competition. The S&P 100 Index is composed of 100 major blue chip
stocks across diverse industry groups. Some market indexes favoring high
technology companies carry the risks involved in their markets. Other market
indexes may be focused on different segments of the market and may be subject to
risks which particularly affect their segments. For example indexes made up of
smaller companies or international companies may not have the market liquidity
of larger companies.
Portfolio Turnover. Purchase and sale of stocks is determined by market dynamics
which may at times call for buying and holding stocks for only short periods of
time. One risk of the strategy is that high portfolio turnover can lead to
increased brokerage commissions or dealer mark-ups or other transaction costs on
purchases and sales of securities. Relatively high portfolio turnover may also
result in increased short-term capital gains, which are taxed at a higher
federal income tax rate than long-term capital gains. In the past, the Sector
Rotation Fund has experienced very high portfolio turnover. In the future, both
Funds could experience high portfolio turnover which could adversely affect the
performance of the Funds.
Investment in Cash. One of the Sector Rotation Fund's strategies is to invest in
cash positions when there are fewer than five industry sectors or fewer than 20
companies (in the case of the Focused Trend Fund) providing short or medium term
returns greater than money market returns. This usually occurs when broad
markets are declining rapidly. The purpose of the strategy is to protect
principal in falling markets. There is a risk that the industry sectors in the
case of the Sector Rotation Fund or the market indexes in the case of the
Focused Trend Fund will begin to rise rapidly and that the respective Fund will
not be able to reinvest the cash position into advancing industry sectors or
companies comprising the market indexes, as the case may be, quickly enough to
capture the initial returns of changing market conditions.
Exposure to Foreign Markets. American Depository Receipts ("ADR"s) of foreign
companies and equity securities of U.S. companies with substantial foreign
operations may involve additional risks related to political, economic or
regulatory conditions in foreign countries. Securities of companies in emerging
countries can be more volatile and less liquid than securities of companies in
fully developed countries.
For descriptions of the risks involved in investing in particular sectors, see
the SAI.
What has the Sector Rotation Fund's Performance Been?
The bar chart and performance table shown below provide an indication of the
risks of investing in the Sector Rotation Fund by showing the performance of the
Sector Rotation Fund during the Fund's first calendar year comparing the Fund's
performance to that of a broad-based securities market index. How the Fund
performed in the past is not necessarily an indication of how the Fund will
perform in the future.
T.O. Richardson Sector Rotation Fund
(Total return per calendar year)
[Bar Chart]
1999
65.80%
During the period shown in the bar chart, the highest return for a quarter was
38.86% during the quarter ended December 31, 1999 and the lowest return for a
quarter was 1.70% during the quarter ended September 30, 1999.
Average Annual Total Returns for Period Ended December 31, 1999
Since Inception
One Year (December 31, 1998)
The T.O. Richardson Sector Rotation Fund 65.80% 65.57%
Standard & Poor's 500 Index* 21.04% 20.78%
The Total Return for the Six Months Ended June 30, 2000 was 3.42%.
* The Standard & Poor's 500 Index is a widely recognized, unmanaged index of
common stocks of 500 leading U.S. companies from a broad range of industries.
Because the Focused Trend Fund is new, there is no performance information
available at this point. Once the Focused Trend Fund has an annual total return
for at least one calendar year, the Focused Trend Fund will have a bar chart and
table showing the Focused Trend Fund's annual total return compared to the
returns of at least one stock market index, such as the S&P 500 Index.
What are the Costs of Investing in the Funds?
This table shows you the fees and expenses that investors in the Fund will pay.
<TABLE>
<CAPTION>
<S> <C> <C>
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Sector Focused Trend
Rotation Fund Fund
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Shareholder Fees (fees paid directly from the amount of your investment)
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Maximum Sales Charge Imposed on Purchases None None
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Maximum Deferred Sales Charge None None
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Maximum Sales charge Imposed on Reinvested Dividends or other Distributions None None
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Redemption Fee (1) 1.00% 1.00%
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Exchange Fee (2) None None
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Annual Fund Operation Expenses (expenses deducted from the Fund as a percentage
of average net assets)
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Management Fees 1.50% 1.25%
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Distribution (Rule 12b-1) and/or Service Fees None 0.25%(3)
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Other Expenses 0.45%(4) 0.56%(5)
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Total Annual Fund Operating Expenses 1.95% 2.06%
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Less: Expense Reimbursement N/A -0.11%(5)
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Net Total Annual Fund Operating Expenses N/A 1.95%
---------------------------------------------------------------------------------- ---------------- ----------------
</TABLE>
(1) Each Fund charges a fee of 1.00% on redemptions of Fund shares held for less
than one year. This fee is paid to the Fund. This fee is waived for those
persons exchanging shares between the two Funds. If you redeem shares by wire,
you may be charged a $12 service fee. See "Redeeming Shares of the Funds."
(2) There is no charge for written requests to exchange either Fund's shares for
shares of the Firstar Money Market Funds. Firstar charges a $5.00 fee for each
exchange transaction executed by telephone. See "Exchanging Fund Shares for
Shares of Other Funds."
(3) The Focused Trend Fund has adopted a Rule 12b-1 plan, which allows the Fund
to pay distribution fees for the sale and distribution of its shares. The
maximum level of distribution expenses to be paid by the Fund is 0.25% per year
of the Fund's average daily net asset value.
(4) Until December 31, 1999, the Advisor waived its management fee and/or
reimbursed the Section Rotation Fund's other expenses to the extent necessary to
ensure that the total annual operating expenses did not exceed 1.95% of the
Fund's average net assets. The Advisor stopped waiving its management fee and/or
reimbursing the Fund's other expenses as of December 31, 1999. The Advisor may
recoup amounts waived or reimbursed to the extent actual fees and expenses for a
period are less than the 1.95% expense limitation caps, provided, however, that
the Advisor shall only be entitled to recoup such amounts for a period of three
years from the date such amount was waived or reimbursed. The Advisor is
currently recouping expenses under the expense limitation cap. "Other Expenses"
includes expense waiver recovery of 0.02% of the Fund's average net assets.
(5) Until December 31, 2001, the Advisor is waiving its management fee and/or
reimbursing the Focused Trend Fund's other expenses to the extent necessary to
ensure that the total annual operating expenses do not exceed 1.95% of the
Fund's average net assets. The Advisor may stop waiving its management fee
and/or reimbursing the Fund's other expenses after December 31, 2001. Any waiver
or reimbursement is subject to later adjustment to allow the Advisor to recoup
amounts waived or reimbursed to the extent actual fees and expenses for a period
are less than the expense limitation caps, provided, however, that the Advisor
shall only be entitled to recoup such amounts for a period of three years from
the date such amount was waived or reimbursed. The expense information for the
Sector Rotation Fund has been restated to reflect current fees.
Example
This example is intended to help you compare the cost of investing in the Funds
with the cost of investing in other mutual funds.
The assumptions we have made for this example are:
1. You invest $10,000 in the Fund.
2. Your investment has a 5% return each year.
3. The Fund's operating expenses remain the same.
4. You reinvested all dividends and capital gains distributions
<TABLE>
<CAPTION>
<S> <C> <C>
Sector Rotation Focused Trend
Fund (1) Fund(2)
----------------------------------------------------------------------------- ------------------- ------------------
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Although your actual costs may be higher or lower, based on these
assumptions, your cost to hold a Fund's shares for just one year would be $198 $198
----------------------------------------------------------------------------- ------------------- ------------------
----------------------------------------------------------------------------- ------------------- ------------------
If you held Fund shares for three years, the cost would be $612 $636
----------------------------------------------------------------------------- ------------------- ------------------
----------------------------------------------------------------------------- ------------------- ------------------
If you held Fund shares for five years, the cost would be $1,048 N/A
----------------------------------------------------------------------------- ------------------- ------------------
----------------------------------------------------------------------------- ------------------- ------------------
If you held Fund shares for ten years, the cost would be $2,258 N/A
----------------------------------------------------------------------------- ------------------- ------------------
</TABLE>
(1) The one and three year numbers for the Sector Rotation Fund are based on the
net expenses resulting from the expense waiver recovery described above. The
expenses for each subsequent year are based on the Fund's expenses before the
expense waiver recovery.
(2) The one year number for the Focused Trend Fund is based on the Fund's net
expenses resulting from the expense cap agreement described above. All
subsequent years are based on the Fund's expenses before any waivers or
reimbursements.
Sectors the Sector Rotation Fund Will Invest In
Some of the sectors the Sector Rotation Fund may choose to invest in are
described here. The Fund may choose to invest in sectors that are not listed
below. The SAI includes complete descriptions of each sector listed below.
Basic Materials
Companies that manufacture, mine, process or distribute raw materials and
intermediate goods used in building and manufacturing.
Biotechnology
Companies that research, develop and manufacture various biotechnological
products, services, and processes.
Business Services
Companies that provide business-related services such as data processing,
consulting, outsourcing, temporary employment, market research or data base
services, printing, advertising, computer programming, credit reporting, claims
collection, mailing and photocopying to companies and other organizations.
Computers
Companies that research, design, develop, manufacture, or distribute products,
processes, or services that relate to hardware technology within the computer
industry.
Cyclical Industries
Companies involved in the supply or sale of materials, equipment, products or
services related to cyclical industries such as the automotive, chemical,
construction and housing, defense and aerospace, environmental services,
industrial equipment and materials, paper and forest products, and
transportation industries.
Electronics
Companies that design, manufacture, or sell electronic components and systems.
Energy
Companies in the energy industry, including oil, gas, electricity, and coal, and
alternative sources of energy such as nuclear, oil shale, and solar power.
Energy Services
Companies that provide services and equipment to firms in the energy industry.
Environmental Services
Companies in the waste management or pollution control business.
Financial Services
Companies in the financial services industry including insurance companies,
brokerage firms, banks, etc.
Food and Agriculture
Companies that make or distribute food, beverages, and agricultural products.
Health Care
Companies that make or sell products used in heath care.
Health Care Services
Companies that own or run hospitals, nursing homes, health maintenance
organizations, and other companies specializing in the delivery of health care
services.
Industrial Equipment
Companies that make equipment used by industry, such as farm equipment and
industrial machinery.
Leisure
Companies in the leisure and entertainment business.
Medical Equipment
Companies that make or sell medical equipment and devices and related
technologies.
Multimedia
Companies that make or sell products and services used in the broadcast and
media industries.
Natural Resources
Companies that own or develop natural resources, or supply goods and services to
companies in the natural resources business.
Precious Metals and Minerals
Companies that explore, mine, process, or deal in gold, silver, platinum,
diamonds, or other precious metals and minerals.
Retailing
Companies engaged in merchandising finished goods and services primarily to
individual consumers.
Software and Computer Services
Companies that make or sell software or information-based services, and
consulting, communications, and related services.
Technology
Companies that develop, produce or distribute products or services in the
computer, semi-conductor, electronics, communications, health care, and
biotechnology sectors.
Telecommunications
Companies that engage in the development, manufacturing, or sale of
communications services or communications equipment.
Transportation
Companies engaged in providing transportation services in the design,
manufacturing, distribution, or sale of transportation equipment.
Utilities
Companies in the public utilities industry and companies deriving a majority of
their revenues from public utility operations.
Market Indexes the Focused Trend Fund Will Invest In
Some of the indexes comprised of companies in which the Focused Trend Fund may
choose to invest are described here. The Fund may choose to invest in companies
in indexes that are not listed below. The SAI includes complete descriptions of
each market index listed below.
S&P 100 Index
The Standard & Poor's 100 Stock Index, known by its ticker symbol OEX, measures
large company U.S. stock market performance. This market capitalization-weighted
index is made up of 100 major blue chip stocks across diverse industry groups.
Five of the largest companies in the index are Microsoft, Cisco, Intel, Oracle,
and Sun Micro Systems.
Dow Jones Industrial Average
The Dow Jones Industrial Average measures the performance of 30 of the largest
U.S. industrial companies. This price weighted index, started in 1896,
represents what the publisher, Dow Jones Publishing, considers the "most
important" industrial companies in the United States. Five of the largest
companies included in the averages are GE, Microsoft, Intel, Exxon Mobil, and
Wal-Mart. The Dow Jones Industrial Average can be purchased and sold as units
called DIAMONDS on the New York Stock Exchange (the "NYSE").
Nasdaq-100 Index
The Nasdaq-100 Index reflects NASDAQ's largest companies across major industry
groups, including computer hardware and software, telecommunications,
retail/wholesale trade and biotechnology based on market capitalization.
Launched in 1985, the Nasdaq-100 Index represents the largest and most active
non-financial domestic and international issues listed on The NASDAQ Stock
Market(R). Its largest companies also include Microsoft, Cisco, Intel, Oracle,
and Sun Microsystems. It is heavily weighted toward high technology industries.
The Nasdaq-100 Index can be purchased and sold as units on the stock market
under the symbol "QQQ."
S & P 500 Index
The Standard & Poor's 500 Index is widely regarded as the standard for measuring
large-cap U.S. stock market performance and includes a representative sample of
leading companies in leading industries. Leading companies within the index are
highly liquid and can usually be purchased and sold in large quantities without
affecting stock price. The S&P 500 Index can also be purchased and sold in units
called Spiders on the stock market. Although the Fund will not seek to invest in
a large number of companies within the index, it should be noted that because
the index is capitalization weighted, the 25 largest companies within the index
account for 44.1 % of its total market value, and many of the largest such as
Oracle, Home Depot, AOL, Dell and EMC were not very large just a few years ago.
International Indexes
S&P International Indexes
Standard & Poor's also maintains several indexes that may be used by the Fund
from time to time should management determine the investment climate is
favorable. These include S&P Euro Index, S&P/TOPIX 150, S&P Asia Pacific 100
Index, S&P Latin America 40 Index, and S&P United Kingdom 150 Index.
The Funds' Investment Policies
Securities and Investment Practices
The following discussion contains more detailed information about the types of
instruments the Funds will invest in, and certain strategies the Advisor may use
to achieve each Fund's investment objective. A complete listing of each Fund's
limitations and more detailed information about each Fund's investments are
contained in the Funds' SAI.
Equity Securities. These securities include common stocks, ADRS, preferred
stocks, convertible securities and warrants. Equity securities represent an
ownership interest in a company. Stock prices fluctuate based on changes in a
company's financial condition and on overall market conditions. The stocks of
smaller companies tend to be more sensitive to these factors. ADRs represent
equity in foreign companies. They are purchased and sold in the United States
securities markets in U.S. dollars.
Money Market Securities. These are high-quality, short-term instruments issued
by the U.S. Government, corporations, financial institutions, and other
entities. They may carry fixed, variable, or floating interest rates and may
include commercial paper, demand notes, certificates of deposit, banker's
acceptances and time deposits.
Variable and Floating Rate Securities. These securities have interest rates that
are periodically adjusted either at specific intervals or whenever a benchmark
rate changes.
Repurchase Agreements. In a repurchase agreement, a Fund buys a security at one
price and simultaneously agrees to sell it back at a higher price. Delays or
losses could result if the other party to the agreement defaults or becomes
insolvent.
Investment Companies (Mutual Funds). Each Fund may invest in other open or
closed end funds. If a Fund invests in other investment companies, Fund
shareholders would also pay, indirectly, the fees and expenses of such
investment companies. A Fund would use this strategy when the Advisor determines
that this approach is the most economical way to invest in a particular sector
or market index, as the case may be, or to facilitate investment in certain
foreign countries.
Borrowing. A Fund may borrow from banks or through reverse repurchase
agreements. If a Fund borrows money, its share price may be subject to greater
fluctuation until the borrowing is paid off. If the Fund makes additional
investments while borrowings are outstanding, this may be considered a form of
leverage. A Fund may borrow only for temporary or emergency purposes, but not in
an amount exceeding 33 1/3% of its total assets.
Temporary Strategies. The Advisor may hold cash and/or invest all or a portion
of a Fund's assets in money market instruments or money market funds.
Foreign Investments. The Focused Trend Fund expects that under normal market
conditions, the Fund's investments in securities of foreign issuers will
comprise not more than 25% of the assets of the Fund. Further, the Focused Trend
Fund will seek to invest in companies within foreign market indexes that have a
history of substantial market liquidity.
Foreign investments involve certain special risks, including:
Unfavorable changes in currency exchange rates: Foreign investments are normally
issued and traded in foreign currencies. As a result, their values may be
affected by changes in exchange rates between foreign currencies and U.S.
Dollars.
Political and economic developments: Foreign investments may be subject to the
risks of seizure by a foreign government, imposition of restrictions on the
exchange or export of foreign currency, and tax increases.
Unreliable or untimely information: There may be less information publicly
available about a foreign company than about most U.S. companies, and foreign
companies are usually not subject to accounting, auditing and financial
reporting standards and practices as stringent as those in the United States.
Limited legal recourse: Legal remedies for investors may be more limited than
the remedies available in the United States.
Limited markets: Certain foreign investments may be less liquid (harder to buy
and sell) and more volatile than U.S. investments, which means the Focused Trend
Fund may at times be unable to sell these foreign investments at desirable
prices. For the same reason, the Focused Trend Fund may find it difficult to
value its foreign investments.
Trading practices: Brokerage commissions and other fees are usually higher for
foreign investments than for U.S. investments. The procedures and rules
governing foreign transactions and custody may also involve delays in payments,
delivery or recovery of money or investments.
Low yield: Common stocks of foreign companies have historically offered lower
dividends than stocks of comparable U.S. companies. Foreign withholding taxes
may further reduce the amount of income available to distribute to shareholders
of the fund.
The risks of foreign investments are typically increased in less developed
countries, which are sometimes referred to as emerging markets. For example,
political and economic structures in these countries may be changing rapidly,
which can cause instability. These countries are also more likely to experience
high levels of inflation, deflation or currency devaluation, which could hurt
their economies and securities markets. For these and other reasons, investments
in emerging markets are considered speculative.
Derivatives. It is the Advisor's intention to use derivatives only for hedging
all or portions of a Fund's assets from time to time, and to use only
derivatives available in regulated U.S. securities markets. Examples of
derivatives the Advisor expects to use are U.S. Treasury notes, bills and bonds
futures, S&P 500 Index and other stock index futures and options and foreign
currency futures contracts.
Each Fund may engage in a variety of transactions involving derivatives, such as
futures, options, warrants, and swap contracts. Derivatives are financial
instruments whose value depends upon, or is derived from, the value of something
else, such as one or more underlying investments, pools of investments, indexes
or currencies. A Fund may use derivatives for hedging and non-hedging purposes.
However, the Advisor may choose not to use derivatives, based on an evaluation
of market conditions or the availability of suitable derivatives.
Derivatives involve special risks and costs and may result in losses. Each Fund
depends on the Advisor's ability to handle these sophisticated instruments. The
prices of derivatives may move in unexpected ways, especially in abnormal market
conditions. Some derivatives are "leveraged" and accordingly may magnify or
otherwise increase investment losses. The use of derivatives may also increase
the amount of taxes payable by shareholders.
Other risks arise from the potential inability to terminate or sell derivatives
positions. A liquid market may not always exist for a Fund's derivatives
positions at any time. For further information about the risks of derivatives,
see the SAI.
The Management of the Funds
The Advisor
Each Fund's Advisor is T.O. Richardson Company, Inc., Two Bridgewater Road,
Farmington, Connecticut 06032-2256. Under the Investment Advisory Agreement
between the Funds and the Advisor, the Sector Rotation Fund pays the Advisor a
fee at the annual rate of 1.50% of the Fund's average daily net assets and the
Focused Trend Fund pays the Advisor a management fee of 1.25% of the Focused
Trend Fund's average daily net assets. The advisory fees are accrued daily and
payable monthly. Winning by Not Losing(R) is the Advisor's approach to achieving
superior long term returns with consistent emphasis on capital preservation for
risk averse individuals, institutions, endowments and pension plans.
Portfolio Management Team
Each Fund's portfolio management team is led by L. Austine Crowe, Executive Vice
President of the Advisor. For the past six years, Mr. Crowe has actively managed
private accounts for T.O. Richardson using the Advisor's sector rotation and
focused trend disciplines. He has also managed the Sector Rotation Fund since
December 1998. Mr. Crowe is the Chairman of the Advisor's investment committee,
which has responsibility for all of the Advisor's investment decision making.
The portfolio management team for each Fund includes Samuel Bailey, Jr.,
Chairman of T.O. Richardson, and Ralph L. Gaudet, Jr., Managing Director of T.O.
Richardson. Together the group has more than 60 years of investment experience.
Distributor
The Funds' distributor is T.O. Richardson Securities, Inc., (the "Distributor")
Two Bridgewater Road, Farmington, Connecticut 06032-2256. The Distributor is an
affiliate of the Advisor. The Funds and the Distributor have entered into a
Distribution Agreement under which the Distributor serves as the principal
underwriter of the Funds, with responsibility for promoting sales of each Fund's
shares. As compensation for its services, the Distributor may retain a portion
of the Rule 12b-1 fees payable by the Focused Trend Fund. The Distributor may
pay all or a portion of its fee to registered broker dealers who sell Focused
Trend Fund shares, pursuant to a written dealer agreement. The Distributor may
pay Rule 12b-1 fees to persons entering into 12b-1 related agreements. Such
persons may include the Advisor. The Distributor and the Advisor, at their own
expense, may also periodically sponsor programs that offer additional
compensation in connection with the sale of Fund shares. In some circumstances,
this compensation may be made available to certain dealers whose representatives
have sold or are expected to sell significant amounts of Focused Trend Fund
shares. The Distributor does not receive any compensation (Rule 12b-1 fees or
otherwise) from the Sector Rotation Fund for performing this function.
The Distribution Agreement provides (A) that it will be subject to annual
approval by the Trustees and the Independent Trustees; (B) that it may be
terminated without penalty at any time by a vote of a majority of the
Independent Trustees or by vote of a majority of the outstanding securities of
the Fund on not more than 60 days' written notice; and (C) that it terminates if
it is assigned.
Custodian, Transfer Agent and Dividend-Disbursing Agent and Administrator
Firstar Bank, N.A., 425 Walnut Street, Cincinnati, Ohio 45202, acts as custodian
of each Fund's assets (the "Custodian"). Firstar Mutual Fund Services, LLC Third
Floor, 615 East Michigan Street, Milwaukee, Wisconsin 53202 serves as
dividend-disbursing agent and as transfer agent for each Fund (the "Transfer
Agent"). Under a Fund Administration Servicing Agreement and a Fund Accounting
Servicing Agreement, the Transfer Agent also performs accounting and certain
compliance and tax reporting functions for each Fund.
Fund Expenses
Each Fund is responsible for its own expenses, including: interest charges;
taxes; brokerage commissions; expenses of registering or qualifying shares for
sale with the states and the SEC; expenses of printing and distributing
prospectuses to existing shareholders; charges of custodians; expenses for
accounting, administrative, audit, and legal services; fees for outside
Trustees; expenses of fidelity bond coverage and other insurance; expenses of
indemnification; extraordinary expenses; and costs of shareholder and Trustee
meetings.
How Fund Shares are Priced
The price of each Fund's shares is based on its net asset value ("NAV"). The NAV
per share of a Fund is calculated once daily as of the close of regular trading
(generally 4:00 p.m. Eastern Time) every day that the NYSE is open for business.
The NAV is calculated by taking the value of a Fund's total assets, including
interest or dividends accrued, less all liabilities, and dividing the total by
the total number of shares of the Fund outstanding. The result is the Fund's NAV
per share. In determining NAV, expenses are accrued and applied daily and
securities and other assets are generally valued at market value.
Purchase orders for Fund shares or shares tendered for redemption prior to the
close of trading on a day the NYSE is open for trading will be valued as of the
close of trading on that day. Those received after the close of trading will be
valued as of the close of trading on the next day the NYSE is open.
Common stocks and other equity-type securities are valued at the last sales
price on the securities exchange on which they are usually traded. Under other
circumstances, securities are valued at the average of the most recent bid and
asked prices.
Fixed income securities are valued by pricing services that use electronic data
processing techniques to determine values. Under other circumstances, actual
sale or bid prices are used.
Any securities or other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by a Fund's
Trustees. The Board of Trustees may approve the use of pricing services to
assist the Funds in determining NAV.
Purchasing Shares of the Funds
Shares of a Fund may be purchased through the Distributor directly, or through
the Transfer Agent. Shares of the Funds may also be purchased through a
registered broker dealer, who may charge you a fee either at the time of
purchase or at the time of redemption. The fee, if charged, is retained by the
broker dealer and is not sent to a Fund, the Advisor or the Distributor. Shares
of the Funds are sold on a continual basis at the next offering price (the
"Offering Price"), which is the NAV per share when the order is received by a
dealer, the Distributor or the Transfer Agent.
Payment for Fund shares should be made by check or money order. The minimum
initial investment is $5,000. For IRAs, the minimum investment is $2,000.
Subsequent investments of at least $500 may be made by mail or wire. If you use
the Automatic Investment Plan, the minimum investment is $1,000 with a minimum
monthly investment of $100. These minimums can be changed or waived by a Fund at
any time.
To purchase Fund shares, complete the shareholder purchase application and mail
it with a check or money order payable to either "T.O. Richardson Sector
Rotation Fund" or "T.O. Richardson Focused Trend Fund" to one of the addresses
below. If you are making an additional purchase, complete the Additional
Investment Form provided on the lower portion of your account statement and
include it with your check or money order. To make an additional purchase by
wire, please refer to the "Wire Purchases" section that follows.
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For Regular Mail For Overnight Mail
T.O. Richardson Sector Rotation Fund T.O. Richardson Sector Rotation
or T.O. Richardson Focused Trend Fund or T.O. Richardson Focused
c/o Firstar Mutual Fund Services, LLC Trend Fund
P.O. Box 701 c/o Firstar Mutual Fund Services, Milwaukee, Wisconsin
53201-0701 LLC
Third Floor
615 East Michigan Street
Milwaukee, Wisconsin 53202
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If the broker dealer through which you choose to purchase a Fund's shares has
not entered into a sales agreement with the Distributor, the dealer can still
place your order for the purchase of a Fund's shares. Purchases made through
dealers who do not have selling agreements with the Advisor will be made at the
Offering Price, although they may charge a transaction fee. To avoid that fee,
purchase shares through a dealer that has entered into a sales agreement with
the Distributor or through the Transfer Agent.
If your check does not clear, you will be charged a $25 service fee. You will
also be responsible for any losses suffered by a Fund as a result. Neither cash
nor third-party checks will be accepted. All applications to purchase a Fund's
shares are subject to acceptance by the Fund and are not binding until they are
accepted. Each Fund reserves the right to decline or accept a purchase order
application.
Wire Purchases
You may also purchase a Fund's shares by wire. The following instructions should
be followed when wiring funds to the Transfer Agent for the purchase of Fund
shares:
Wire to Firstar Bank, N.A.
ABA Number 042000013
Credit Firstar Mutual Fund Services, LLC
Account 112-952-137
Further Credit T.O. Richardson Sector Rotation Fund or T.O. Richardson Focused
Trend Fund
Shareholder Account Number
Shareholder Name or Account
Registration
Social Security or Taxpayer Identification
Number
Account Registration
Please call 1-800-643-7477 prior to wiring any funds to notify the Transfer
Agent that the wire is coming. The Fund is not responsible for the consequences
of delays resulting from the banking or Federal Reserve wire system or from
incomplete wiring instructions.
Telephone Purchases
The telephone purchase option allows you to make subsequent investments of at
least $250 directly from a bank checking or savings account. To set up the
telephone purchase option on your account, complete the appropriate section in
the purchase application. Only bank accounts held at domestic financial
institutions that are Automated Clearing House ("ACH") members may be used for
telephone transactions.
This option will become effective approximately 15 business days after the
Transfer Agent receives the application form. If the Transfer Agent receives
both your purchase order and payment by Electronic Funds Transfer through the
AIP system before the close of regular trading, you will pay the offering price
calculated that day. Most transfers are completed within one business day.
Subsequent investments may be made by calling 1-800-643-7477.
Automatic Investment Plan
The Automatic Investment Plan ("AIP") allows you to make regular monthly
investments in a Fund on the days you choose, directly from your bank account.
To establish the AIP, complete the appropriate section in the shareholder
application. You can set up the AIP with any financial institution that is a
member of ACH. There is no fee for this service, but if your AIP does not clear
for lack of funds, you will be charged a $25 service fee. The minimum initial
investment for investors using the AIP is $1,000, and subsequent investments
must equal $100 or more.
The AIP allows investors to take advantage of dollar cost averaging, which is
simply investing a fixed amount of money at regular time periods, such as
monthly, or weekly. By making regular investments of the same dollar amount, you
can buy more shares when the price is low, and you will buy fewer shares when
the price is high. Over time, you may pay an average price for your Fund's
shares, rather than buying at either a low point or a high point. Of course, the
AIP program does not ensure a profit or protect against a loss under any
circumstances.
Each Fund has the right to close an investor's account if the investor stops
making payments under the AIP. Before closing an account, the Fund will give the
investor written notice and 60 days to reinstate the AIP, or reach the regular
minimum initial investment of $5,000.
Individual Retirement Accounts
Each Fund offers two types of IRAs that can be adopted by executing the
appropriate Internal Revenue Service Form. For more information on IRAs, please
see the separate IRA Disclosure Statement.
For Traditional and Roth IRAs, the maximum annual total IRA contribution for one
person is generally equal to the lower of $2,000 or 100% of the investor's
compensation (earned income). Investors may have both types of IRAs, although
the $2,000 annual maximum contribution will have to be spread between the two
accounts.
Traditional IRA
Contributions to this IRA may be tax deductible when they are made, depending on
the investor's status as an "active participant" in an employer-sponsored
retirement plan and the investor's income. Distributions of investment earnings
from a Traditional IRA will be taxed at distribution. Premature distributions
taken before age 59-1/2 may be subject to an additional 10% tax. Distributions
must begin by April 1 following the calendar year in which the investor reaches
age 70-1/2, or tax penalties may apply.
Roth IRA
Contributions to a Roth IRA are taxed when they are made, and distributions from
the IRA are not taxable, if investors hold the IRAs for certain minimum periods
of time (generally, until age 59-1/2). Investors whose income exceeds certain
limits are not eligible to contribute to a Roth IRA. Distributions of investment
earnings that do not meet the requirements for tax-free withdrawals are subject
to income taxes (and possibly penalty taxes). There are no minimum required
distributions except in the case of death of the investor.
Simplified Employee Pension Plan
A Traditional IRA may also be used in conjunction with a Simplified Employee
Pension Plan, or SEP-IRA. A SEP-IRA is established by completing Form 5305-SEP
and by opening a Traditional IRA for each eligible employee. SEP-IRAs allow
employers (including self-employed people) to purchase shares with tax
deductible contributions. These contributions may not exceed 15% of annual
compensation for any one participant in the SEP-IRA. A number of special rules
apply to SEP Plans, including a requirement that contributions generally be made
on behalf of all employees of the employer (including for this purpose a sole
proprietorship or partnership) who satisfy certain minimum participation
requirements.
Simple IRA
Employers and self-employed people may also establish SIMPLE IRAs. SIMPLE IRAs
are similar to Traditional IRAs, with the exceptions described below. Under a
SIMPLE Plan, the investor may elect to have his or her employer make salary
reduction contributions of up to $6,000 per year to the SIMPLE IRA. The $6,000
limit is adjusted periodically for cost of living increases. Employers are
required to contribute certain amounts to the investor's SIMPLE IRA, either as a
matching contribution to those participants who make their own salary reduction
contributions, or as a non-elective contribution to all eligible participants,
whether or not they make salary reduction contributions.
A number of special rules apply to SIMPLE Plans, including:
o SIMPLE Plans generally are available only to employers with fewer than 100
employees,
o Contributions must be made on behalf of all employees of the employer (other
than bargaining unit employees) who satisfy certain minimum participation
requirements,
o Contributions are made to a SIMPLE IRA that is separate and apart from the
other IRAs of employees,
o The distribution excise tax (if otherwise applicable) is increased to 25% on
withdrawals during the first two years of participation in a SIMPLE IRA, and
o Amounts withdrawn during the first two years of participation may be rolled
over tax-free only into another SIMPLE IRA (and not to a Traditional IRA or a
Roth IRA). A SIMPLE IRA is established by executing Form 5304-SIMPLE together
with an IRA established for each eligible employee.
Redeeming Shares of a Fund
You may redeem (or sell back to a Fund) some or all of your Fund shares at any
time. Your redemption will be processed at the first NAV calculated after your
completed request is received by the Transfer Agent. If you have a broker or
dealer listed on your account, you may redeem shares through the broker or
dealer. Otherwise, all redemption requests must be made with the Transfer Agent.
You can make redemption requests through any broker or dealer, but you may be
charged a fee. The Fund will mail you a check with your redemption proceeds,
generally the next business day after the request is processed, and not more
than seven days after receiving the complete request. Redeeming shares of a Fund
is a taxable event.
If you make a purchase by check, and then immediately request a redemption, a
Fund can hold your redemption payment until your original purchase check has
cleared, which could take up to 12 days.
The Transfer Agent may request additional documentation to process redemptions
from corporations, executors, administrators, trustees, guardians, agents or
attorneys-in-fact.
A Fund will pay in cash all redemptions during any 90-day period, in amounts up
to the lesser of $250,000 or 1% of the Fund's net assets at the beginning of the
period. Redemptions in excess of this limit may be paid, in whole or in part, in
securities or in cash, as the Trustees deem advisable.
If you are an IRA investor, you will need to indicate on your redemption
requests whether or not federal income tax should be withheld, otherwise federal
taxes will be withheld from your distribution.
Written Redemption
Simply mail a written request for redemption of your Fund shares to either
address below.
For Regular Mail For Overnight Mail
T.O. Richardson Sector Rotation Fund T.O. Richardson Sector Rotation
or T.O. Richardson Focused Trend Fund or T.O. Richardson Focused Trend Fund
c/o Firstar Mutual Fund Services, LLC c/o Firstar Mutual Fund Services, LLC
P.O Box 701 Third Floor
Milwaukee, Wisconsin 53201-0701 615 East Michigan Street
Milwaukee, Wisconsin 53202
Your request must:
o Be signed exactly as the shares are registered, including the signature of
each owner.
o Specify the number of shares or dollar amount to be redeemed.
o Include a signature guarantee if your request is made within 15 days of a
change of address.
You may request that the proceeds of your redemption be wired to the bank you
pre-authorized on your account application. The Transfer Agent charges a $12
service fee for each wire transaction.
Because the U.S. Postal Service and other independent delivery services are not
agents of the Funds, mailing your request is not the same as having your
complete request received by the fund. Your request is "received" when it is
actually processed by the Transfer Agent.
Telephone Redemption
For redemption requests of $1,000 or more, you may call 1-800-643-7477. In order
to redeem shares by phone, you must have requested this option in writing.
Redemption proceeds will be mailed directly to you, or wired to the bank account
you designated on your account application. There is no charge for this service.
The Transfer Agent applies a $12.00 fee for all wire redemptions. To change the
designated bank account, send a written request with guaranteed signature(s) to
the Transfer Agent. To change your address, call the Transfer Agent at
1-800-643-7477, or send a written request to the Transfer Agent.
Telephone redemption requests are not allowed within 15 days of an address
change, and the Funds may limit the number of telephone redemptions it allows an
investor to request. After they have been made, telephone redemptions cannot be
changed or canceled.
The Funds reserve the right to refuse a telephone redemption request if they
believe it is advisable to do so. Procedures for redeeming shares of the Funds
by telephone may be modified or terminated by the Funds at any time. In an
effort to prevent unauthorized or fraudulent redemption requests by telephone,
the Funds have implemented procedures designed to reasonably assure that
telephone instructions are genuine. These procedures include: requesting
verification of certain personal information; recording telephone transactions;
confirming transactions in writing; and restricting transmittal of redemption
proceeds to preauthorized designations. Other procedures may be implemented from
time to time. If reasonable procedures are not implemented, The Funds may be
liable for any loss due to unauthorized or fraudulent transactions. In all
cases, you are liable for any loss for unauthorized transactions.
Systematic Withdrawal Plan
You may set up automatic withdrawals from your Fund account to a bank account.
To do this, you must have a balance of $10,000 in your account, and you must
withdraw at least $250 per payment. To set up the systematic withdrawal plan
("SWP"), you need to fill out the appropriate section of the shareholder
application. You can choose to make withdrawals on a monthly, quarterly,
semi-annual or annual basis (or the following business day).
To change the amount or timing of withdrawal payments, or to temporarily
discontinue them, call 1-800-643-7477. Depending upon the size of your account,
the size of the withdrawal requests, and changes in the price of shares of a
Fund, you may run out of money in your account. If the dollar amount in your
account is not enough to make a payment, the remaining amount will be redeemed
and the SWP will be terminated.
Signature Guarantees
Signature guarantees are required by the Transfer Agent to process some types of
transactions. Signature guarantees may be obtained from commercial banks,
savings associations, credit unions and brokerage firms. Please note that a
notary public stamp or seal is not the same thing as a signature guarantee. Some
types of transactions are:
o Redemption requests to be mailed or wired to a person other than the
registered owner(s) of the shares.
o Redemption requests to be mailed or wired to other than the address currently
on file.
o Any redemption request that occurs within 15 days of a request for a change of
address.
Contingent Redemption Fee
Each Fund is designed as a long-term investment and is not appropriate for
short-term trading. Frequent purchases, redemptions, and exchanges in and out of
a Fund make it difficult for the portfolio management team to make long-term
investment decisions, and can drive up the Fund's transaction costs. To
discourage short-term trading of Fund shares, each Fund charges a 1.00% fee on
redemptions of Fund shares that are held for less than one year. This contingent
redemption fee is waived for shareholders of a Fund who are exchanging shares of
one Fund into shares of the other Fund.
Redemption fees charged to investors will be paid to the relevant Fund to help
offset transaction costs. Such Fund will use the "first-in, first-out"
accounting method to calculate an investor's one-year holding period. This means
that the date of the redemption will be compared with the first purchase date of
Fund shares held in the account. If the period is less than one year, you will
be charged the redemption fee. As an example, if you purchase shares on January
1, 2001 and redeem them on or before December 31, 2001, you will pay the fee. If
you redeem the shares after January 1, 2002, you will not pay the fee.
The fee applies to shares held in all accounts, including IRA accounts, shares
purchased through a Fund's automatic investment plan, and shares held in broker
omnibus accounts.
The Funds may close your account with at least 30 days notice if your account
balance falls below $250. In this case, a Fund will mail you a check for the
proceeds of the redemption within seven days of the redemption.
Exchanging Fund Shares for Shares of other Funds
Each Fund's shareholders can exchange their shares of one Fund for shares of the
other Fund or for shares of the Firstar Money Market Fund. Exchange requests are
available for exchanges of $1,000 or more. There is no charge for written
exchange requests. The Transfer Agent will, however, charge a $5 fee for each
exchange transaction that is executed by telephone.
The Firstar Money Market Fund is a no-load money market fund managed by an
affiliate of the Transfer Agent, and is not related to the Funds. Before
exchanging into the Firstar Money Market Fund, please read the applicable
prospectus, which may be obtained by calling 1-800-643-7477.
For tax purposes, an exchange from one Fund to the other Fund or to the Firstar
Money Market Fund is treated as an ordinary sale and purchase, and you will
realize a capital gain or loss. The Distributor may be paid by the Firstar Money
Market Fund for services provided to shareholders of that Fund.
Dividends, Capital Gains and Tax Treatment
All dividends and capital gains distributions will automatically be reinvested
in additional shares of a Fund at the current NAV unless you specifically
request that either dividends, or capital gains, or both, be paid in cash.
To change the way capital gains and dividends are paid to you, call
1-800-643-7477. You may choose to have dividends or capital gains that are paid
in cash sent by mail, or sent by electronic funds transfer ("EFT"). Transfers by
EFT generally take up to three business days to reach your bank account.
If you choose to receive distributions and dividends by check and the post
office cannot deliver the check, or if the check is not cashed for six months, a
Fund can reinvest that distribution, and any others, in your account at the
current net asset value.
Each Fund intends to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986. In this case, neither Fund
will have any tax liability.
Each Fund intends to declare and pay dividends and to distribute any capital
gains annually. Capital gains distributions may be more frequent. When a Fund
distributes a dividend or capital gain, the Fund's NAV decreases by the amount
of the payment. If you purchase shares right before a distribution, you will
have to pay income taxes on the distribution, even though the value of your
investment has not changed.
Dividends and distributions of net realized short-term capital gains are taxable
to Fund investors as ordinary income. This is true whether they are reinvested
in a Fund or they are received in cash, unless you are either exempt from taxes
or qualify for a tax deferral.
Distributions of net realized long-term capital gains are taxable as a capital
gain, whether you reinvest them, or you receive them in cash. The capital gain
holding period is measured by the length of time a Fund has held the securities
that produced the gain, not the length of time you have held shares in a Fund.
Each Fund provides information every year about the amount and type of all
dividends and capital gains paid during the prior year. You may incur state or
local taxes on dividends and capital gains.
If a Fund does not have your correct social security number or taxpayer
identification number, the Fund is required by federal law to withhold federal
income tax from your distributions and redemptions at a rate of 31%.
Other information about federal tax issues is in the SAI. There may be other
federal, state, or local tax considerations that apply to you. Be sure to
consult your own tax advisor.
Financial Highlights for the Sector Rotation Fund
For the Period
December 31, 1998 (1)
to October 31, 1999
Per share data for a share outstanding throughout the period:
Net asset value at beginning of period $10.00
Income from investment operations:
Net investment income 0.02
Net realized and unrealized gains on investments 2.11
Total from investment operations 2.13
Net asset value at end of period $12.13
Total return (2) 21.30%
Ratios and supplemental data:
Net assets at end of period (000's) $33,780
Ratio of operating expenses to average net assets(3) 1.95%(4)
Ratio of net investment income to average net assets(4) 0.36%(4)
Portfolio turnover rate 946.15%(2)
------------------
(1) Commencement of Operations.
(2) Not annualized.
(3) Without expense reimbursements of $105,174 for the period December 31, 1998
to October 31, 1999, the ratio of operating expenses and net investment
income to average net assets would have been 2.51% and (0.20%),
respectively.
(4) Annualized.
<PAGE>
Additional Information
TRUSTEES
Samuel Bailey, Jr.
John R. Birk
Robert T. Samuels
Gunnar S. Overstrom
OFFICERS
Samuel Bailey, Jr., President and Treasurer
L. Austine Crowe, Jr., Vice President
Kathleen M. Russo, Secretary
Joseph C. Neuberger, Assistant Treasurer
Michael B. Peck, Assistant Secretary
Paul W. Rock, Assistant Secretary
INVESTMENT ADVISOR
T.O. Richardson Company, Inc.
Two Bridgewater Road
Farmington, CT 06032-2256
CUSTODIAN
Firstar Bank, N.A.
425 Walnut Street
Cincinnati, OH 45202
ADMINISTRATOR AND TRANSFER AGENT
For Regular Mail
T.O. Richardson Sector Rotation Fund
or T.O. Richardson Focused Trend Fund
Firstar Mutual Fund Services, LLC
P.O. Box 701
Milwaukee, WI 53201-0701
For Overnight Mail
T.O. Richardson Sector Rotation Fund
or T.O. Richardson Focused Trend Fund
Firstar Mutual Fund Services, LLC
Third Floor
615 East Michigan Street
Milwaukee, WI 53202-5207
DISTRIBUTOR
T.O. Richardson Securities, Inc.
Two Bridgewater Road
Farmington, CT 06032-2256
INDEPENDENT ACCOUNTANTS
Arthur Andersen LLP
100 East Wisconsin Avenue
P.O. Box 1215
Milwaukee, WI 53201-1215
LEGAL COUNSEL
Sullivan & Worcester LLP
1025 Connecticut Avenue, N.W.
Washington, D.C. 20036
More information on the Funds is available free upon request, including the
following:
Annual/Semiannual Report
These reports describe each Fund's performance, list portfolio holdings and
contain a letter from each Fund's manager discussing recent market conditions,
economic trends and the Funds' strategies and their effect on each Fund's
performance.
Statement of Additional Information
The SAI, dated September 29, 2000, provides more detailed information about each
Fund and its policies. A current SAI is on file with the Securities and Exchange
Commission ("Commission") and is incorporated by reference (i.e. is legally
considered part of this Prospectus).
To Request More Information or Ask Questions
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Call 1-800-643-7477
Write T.O. Richardson Company, Inc.
Two Bridgewater Road
Farmington, Connecticut 06032-2256
Internet Reports and other information about the Funds are available
on the Commission's website at http://www.sec.gov. and T.O.
Richardson's web site at http://www.torich.com
Securities and Exchange Commission Information about the Funds (including the SAI) can be
reviewed and copied at the Commission's Public Reference Room
in Washington, D.C. You may obtain information about the
operations of the Public Reference Room by calling the
Commission at 202-9428090. Copies of information about the
Funds may be obtained, upon payment of a duplicating fee, by
writing the Commission's Public Reference Section,
Washington, D.C. 20549-0102, or by sending an electronic
request to the SEC at [email protected].
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SEC File Number is 811-8849.
T.O. Richardson Company, Inc.
Two Bridgewater Road
Farmington, CT 06032-2256
1-800-235-1022
For more information about the
T.O. Richardson Sector Rotation Fund or the T.O. Richardson Focused Trend Fund,
call 1-800-643-7477
Shares distributed through
T.O. Richardson Securities, Inc.,
member of the NASD.
