Dear Shareholder:
The Prospectus for The Simms Funds is being revised to terminate the
shareholder servicing fee imposed on Class A shares of the Funds. Please keep a
copy of this supplement with your Prospectus.
- --------------------------------------------------------------------------------
The Simms Funds
U.S. Equity Fund
International Equity Fund
Global Equity Fund
Supplement dated February 25, 2000
To the Prospectus Dated October 29, 1999
On page 3, under "Risk/Return Summary -- Fees and Expenses of the Funds,"
replace the table of fees and expenses and accompanying notes with the
following:
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
International
U.S. Equity Fund Equity Fund Global Equity Fund
---------- ----------- ---------- ---------- ----------- ----------
Class A Class Y Class A Class Y Class A Class Y
---------- ----------- ---------- ---------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Shareholder Fees
(paid directly from your investment)
Maximum sales charge (load) imposed on purchases
(as a percentage of offering price) (1) 4.00% None 4.00% None 4.00% None
Maximum deferred sales charge (load) None None None None None None
Maximum sales charge (load) imposed on reinvested
dividends None None None None None None
Redemption fee (2) None None None None None None
- ---------------------------------------------------------- ---------- ----------- ---------- ---------- ----------- ----------
ANNUAL FUND OPERATING EXPENSES
(deducted from Fund assets)
Management fees 0.75% 0.75% 1.00% 1.00% 1.00% 1.00%
Rule 12b-1 distribution fees (3) 0.50% None 0.50% None 0.50% None
Other fees 4.84% 4.84% 4.52% 4.52% 36.44% 36.44%
Total annual Fund operating expenses (4) 6.09% 5.59% 6.02% 5.52% 37.94% 37.44%
Expenses reimbursed by the Fund's investment adviser -4.28% -4.28% -3.89% -3.89% -35.96% -35.96%
------ ------ ------ ------ ------- -------
Net operating expenses 1.81% 1.31% 2.13% 1.63% 1.98% 1.48%
- ---------------------------------------------------------- ---------- ----------- ---------- ---------- ----------- ----------
</TABLE>
1. The initial sales charge imposed on Class A Shares declines for purchases
over $100,000 and the charge is eliminated entirely for purchases of at
least $1 million and for certain categories of investors. See "Investing
With Simms" below.
2. You may pay fees in connection with certain redemption services, such as a
$12 wire transfer fee.
3. Class A Shares of each Fund pay distribution fees on an ongoing basis. Over
time, these fees will increase the cost of your investment and may cost you
more than paying other types of sales charges. T.O. Richardson Securities,
Inc., the Funds' Distributor, will waive its distribution fees to the
extent that a Fund would exceed the regulatory limitations on asset-based
sales charges.
4. We expect that each Fund's total annual operating expenses will decrease
as the Fund's assets increase. For the period from commencement of
operations to June 30, 1999, Simms Capital Management, Inc., each Fund's
investment adviser (Simms or the Adviser) waived its investment advisory
fee and absorbed certain expenses so that the net annual Fund operating
expenses did exceed the amounts shown above. Simms has agreed to
continue to limit each Fund's net annual operating expenses as shown
above until at least June 30, 2002.
To the extent that Simms reimburses or absorbs fees and expenses, it may
seek payment of such amounts for two years after the year in which
expenses were reimbursed. A Fund will make no such payment, however, if
the total annual Fund operating expenses exceed the expense limits in
effect at the time these payments or reimbursements are proposed.
Please insert this Supplement in the front of your Prospectus. If you wish to
obtain more information, please call the Funds at 877-GET-SIMS (877-438-7467).
