Supplement
Dated December 28, 1999
to the Activa Value Fund
Prospectus
Dated September 1, 1999
Effective January 1, 2000, Wellington Management Company, LLP ("Wellington
Management") will replace Ark Asset Management Co., Inc. ("Ark") as the
Sub-Adviser of Activa Value Fund. Wellington Management is a Massachusetts
limited liability partnership headquartered in Boston, Massachusetts. As of
September 30, 1999, the firm had approximately $217 billion in discretionary
client accounts under management. Activa Asset Management LLC ("Activa
Management") will continue to serve as the Fund's Investment Adviser. There will
be no change in the Fund's investment objectives, policies and restrictions as a
result of the change in the Fund's Sub-Adviser.
Doris Dwyer Chu., a Vice President of Wellington Management, will serve as the
Fund's portfolio manager and will be responsible for the day-to-day management
of the Fund. She will be supported by Wellington Management's team of global
industry analysts, along with the firm's specialized fundamental, quantitative,
technical and macro economic analysts. Ms. Chu joined Wellington Management in
1998.She was previously a partner and portfolio manager with Grantham, Mayo, Van
Otterloo & Company (1985-1998). She has over fourteen years of investment
experience.
As compensation for its services as the Fund's new Sub-Adviser, Wellington
Management will receive a fee from the Fund's Investment Adviser at the annual
rate of 0.30% of the first $350 million of average daily net assets of the Fund,
and 0.25% of the assets in excess of $350 million; the minimum annual fee shall
be $350,000. The annual compensation presently paid by the Investment Adviser to
Ark Asset Management Co., Inc. is 0.35% of Fund assets in excess of $200
million; larger percentage fees (up to a maximum of 0.45%) are paid if the
Fund's assets are less than $200 million.
Under the Investment Advisory Agreement, Activa Management receives a fee from
the Fund at the annual rate of 0.55% of Fund assets in excess of $200 million;
larger percentage fees (up to a maximum of 0.65%) are paid if the Fund's assets
are less than $200 million . The Investment Advisory Agreement will not be
changed. However, Activa Management has agreed to waive any fees under this
agreement which are greater than the total of 0.20% of the Fund's assets, plus
the amount paid by Activa Management to the Fund's Sub-Adviser.
During the year ended December 31, 1998, the compensation paid by the Fund to
Activa Management for serving as Investment Adviser amounted to 0.64% of the
Fund's average daily net assets. If the new Sub-Advisory Agreement with
Wellington Management had been in effect (together with the Investment Adviser's
waiver policy) the compensation paid by the Fund would have amounted to 0.50% of
the Fund's average daily net assets.
<PAGE>
Supplement
Dated December 28, 1999
to the Activa Value Fund
Statement of Additional Information
Dated September 1, 1999
Effective January 1, 2000, Wellington Management Company, LLP ("Wellington
Management") will replace Ark Asset Management Co., Inc. ("Ark") as the
Sub-Adviser of Activa Value Fund. Wellington Management is a Massachusetts
limited liability partnership headquartered in Boston, Massachusetts. As of
September 30, 1999, the firm had approximately $217 billion in discretionary
client accounts under management. Activa Asset Management LLC ("Activa
Management") will continue to serve as the Fund's Investment Adviser. There will
be no change in the Fund's investment objectives, policies and restrictions as a
result of the change in the Fund's Sub-Adviser.
Doris Dwyer Chu., a Vice President of Wellington Management, will serve as the
Fund's portfolio manager and will be responsible for the day-to-day management
of the Fund. She will be supported by Wellington Management's team of global
industry analysts, along with the firm's specialized fundamental, quantitative,
technical and macro economic analysts. Ms. Chu joined Wellington Management in
1998.She was previously a partner and portfolio manager with Grantham, Mayo, Van
Otterloo & Company (1985-1998). She has over fourteen years of investment
experience.
As compensation for its services as the Fund's new Sub-Adviser, Wellington
Management will receive a fee from the Fund's Investment Adviser at the annual
rate of 0.30% of the first $350 million of average daily net assets of the Fund,
and 0.25% of the assets in excess of $350 million; the minimum annual fee shall
be $350,000. The annual compensation presently paid by the Investment Adviser to
Ark Asset Management Co., Inc. is 0.35% of Fund assets in excess of $200
million; larger percentage fees (up to a maximum of 0.45%) are paid if the
Fund's assets are less than $200 million.
Under the Investment Advisory Agreement, Activa Management receives a fee from
the Fund at the annual rate of 0.55% of Fund assets in excess of $200 million;
larger percentage fees (up to a maximum of 0.65%) are paid if the Fund's assets
are less than $200 million . The Investment Advisory Agreement will not be
changed. However, Activa Management has agreed to waive any fees under this
agreement which are greater than the total of 0.20% of the Fund's assets, plus
the amount paid by Activa Management to the Fund's Sub-Adviser.
During the year ended December 31, 1998, the compensation paid by the Fund to
Activa Management for serving as Investment Adviser amounted to 0.64% of the
Fund's average daily net assets. If the new Sub-Advisory Agreement with
Wellington Management had been in effect (together with the Investment Adviser's
waiver policy) the compensation paid by the Fund would have amounted to 0.50% of
the Fund's average daily net assets.
