<PAGE>
TARGET FUNDS
------------------------------------------------------------------------------
SUPPLEMENT TO PROSPECTUS DATED SEPTEMBER 17, 1999
How the Trust is Managed
The section entitled 'How the Trust is Managed' is amended as follows.
The first three paragraphs under 'Large Capitalization Value Fund' are
amended to read in their entirety as follows:
J.P. Morgan Investment Management Inc. (J.P. Morgan) and Hotchkis and
Wiley are the Advisers for the Large Capitalization Value Fund. For their
services as Advisers, J.P. Morgan and Hotchkis and Wiley each receive a
fee from PIFM at the annual rate of .30% of the average daily net assets
of the portion of the Fund it manages.
J.P. Morgan was created in 1984 out of the Trust and Investment
Division of Morgan Guaranty Trust Company of New York. J.P. Morgan manages
assets for retirement plans, endowments, foundations, public entities,
mutual funds and other institutional investors. As of March 31, 2000, J.P.
Morgan managed assets totaling approximately $376 billion. The address of
J.P. Morgan is 522 Fifth Avenue, New York, NY 10036.
Bernard Kroll and Nanette Buziak have managed the assets of the Fund
since May 2000. Mr. Kroll is a Managing Director of J.P. Morgan and a
portfolio manager in its Structured Equity Group. Prior to joining J.P.
Morgan in 1996, Mr. Kroll was an equity derivatives specialist at Goldman
Sachs & Co., founded his own options broker-dealer, and managed several
derivatives businesses at Kidder, Peabody & Co. Ms. Buziak is a portfolio
manager in J.P. Morgan's Structured Equity Group. Prior to joining J.P.
Morgan in 1997, Ms. Buziak spent four years at First Marathon America,
Inc., where she specialized in convertible bond arbitrage and stock index
arbitrage trading.
The date of this Supplement is May 25, 2000
MF189C2
