January 26, 1998
Dear Shareholder:
As you are aware, Composite Fund shareholders were asked to vote on a number of
proposals recently. We are happy to announce that four of the five proposals
have been approved by the shareholders of all the Composite Funds and are being
implemented with the distribution of the attached Prospectus Supplement. The
fifth proposal, which would change the corporate structure of the Funds to a
Massachusetts business trust, requires the approval of two-thirds of share-
holders of each Fund. Most of the Funds have approved this. We are confident
that the change will be approved in the remaining Funds very soon. Please vote
promptly if you have not yet done so.
Although the proposals approved by shareholders are not specifically related to
the merger of the Sierra Funds with our Composite Funds, many of the changes
will support a combined Fund group with a greatly expanded shareholder base and
enhanced operating efficiencies. It is our belief that the Fund families will
provide shareholders with additional investment opportunities while maintaining
or reducing fund expenses to benefit shareholders.
We will continue to be associated with Washington Mutual - the largest thrift
institution in the country. We are proud it is also now the eleventh largest
bank in the United States with more than 700 financial centers and total assets
of more than $96 billion. This provides us with a significant base of financial
strength and a greatly expanded distribution channel for our Funds.
We look forward to the opportunities that the changes will offer to all share-
holders and we appreciate your continued support. This supplement is designed to
complement the current prospectus. It should not be viewed as a replacement. We
encourage you to retain it for future reference.
Sincerely,
/s/ William G. Papesh
William G. Papesh, President
