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THE COMPOSITE FUNDS
Supplement dated December 8, 1997 to Statement of Additional Information
dated November 7, 1997
The Statement of Additional Information of The Composite Funds dated
November 7, 1997 relating to the Prospectus/Proxy Statement of The Composite
Funds dated November 7, 1997 is hereby supplemented as follows:
Performance Comparison for Merged Funds
Average Annual Total Returns for Periods Ended September 30, 1997
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<CAPTION>
Since
Sierra
Fund's Inception
Fund 1-Year 3-Year 5-Year Inception Date
- ----- ------ ------ ------ --------- ---------
<S> <C> <C> <C> <C> <C>
Composite U.S. Government Securities Fund 9.99% 9.34% 6.09% 7.75% 7/25/89
Sierra U.S. Government Fund (without waivers) 9.72% 8.17% 4.91% 6.84%
Sierra U.S. Government Fund (with waivers) 10.16% 8.65% 5.35% 7.41%
Composite Income Fund 12.08% 10.84% 7.40% 9.25% 7/18/90
Sierra Corporate Income Fund (without waivers) 12.19% 10.89% 7.36% 8.86%
Sierra Corporate Income Fund (with waivers) 12.62% 11.32% 7.66% 9.27%
Composite Tax-Exempt Bond Fund 7.72% 8.13% 6.84% 7.49% 7/18/90
Sierra National Municipal Fund (without waivers) 8.79% 7.49% 6.43% 7.69%
Sierra National Municipal Fund (with waivers) 9.11% 7.84% 6.85% 8.32%
Composite Growth & Income Fund 37.63% 27.17% 19.19% 14.21% 7/25/89
Sierra Growth and Income Fund (without waivers) 40.71% 26.25% 19.14% 13.99%
Sierra Growth and Income Fund (with waivers) 40.71% 26.25% 19.16% 14.08%
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All results are for Class A shares, based on net asset value, and annualized.
The average annual total returns "with waivers" for certain of the Acquired
Funds set forth above give effect to the fee and expense waivers which were in
effect during the relevant periods. The average annual total returns for such
Funds "without waivers" represent the returns that would have been achieved by
such Funds for such periods had such waivers not been in effect.
