Rule 497(e)
File Nos. 2-80886
811-3626
Supplement dated February 25, 1999 to the Prospectus of Citizens Funds dated
October 27, 1998:
On page 1, under "Our Funds," delete the fourth paragraph in its entirety and
substitute the following: "Citizens Emerging Growth Fund invests primarily in
the common stock of medium-sized companies with the objective of aggressive
growth."
On page 1, under "Our Funds," sixth paragraph, second sentence, delete the
parenthetical phrase "($250,000 for registered investment advisers)" and insert
"($250,000 for registered investment advisers and retirement plans, at the
discretion of Citizens Funds)".
On page 2, first paragraph, fourth sentence, delete the parenthetical phrase
"($250,000 for registered investment advisers)" and insert "($250,000 for
registered investment advisers and retirement plans, at the discretion of
Citizens Funds)".
On page 2, in the Fee Information Table, under Citizens Income Fund, "Other
Expenses (after waiver and reimbursement)" delete ".84%"and insert ".55%", and
under Citizens Income Fund, "Total Fund Operating Expenses" delete "1.74%+" and
insert "1.45%+".
On page 2, in the Fee Information Table, under Citizens Index Fund,
Institutional Class Shares, "Other Expenses (after waiver and reimbursement)"
delete ".38%" and insert ".33%", and under Citizens Index Fund, Institutional
Class Shares, "Total Fund Operating Expenses" delete ".88%" and insert ".83%".
On page 2, in the Fee Information Table, under Citizens Index Fund,
Institutional Class Shares, "Distribution Expenses (12b-1 Fees)" delete
".07%**" and insert "None**".
On page 2, in the Fee Information Table, under Citizens Global Equity Fund,
"Other Expenses (after waiver and reimbursement)" delete ".95%" and insert
".80%", and under Citizens Global Equity Fund, "Total Fund Operating Expenses"
delete "2.20%" and insert "2.05%".
On page 2, beneath the Fee Information Table, delete the second footnote in its
entirety and substitute the following: "** Citizens Index Fund Institutional
Class Shares may be charged a fee of up to 0.07% for distribution expenses, but
this fee was not assessed in fiscal year 1998 and we do not anticipate that it
will be in fiscal year 1999."
On page 2, beneath the Fee Information Table, delete the third footnote in its
entirety and substitute the following:
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"+ The investment adviser to Citizens Funds agreed to waive certain fees and
reimburse certain expenses for the year ended June 30, 1998 and has agreed to
do so again for the year ending June 30, 1999. Prior to reimbursement, for the
year ended June 30, 1998, Other Expenses for the Citizens Income Fund were .96%
and Total Fund Operating Expenses were 1.86%, whereas after reimbursement
actual expenses charged to shareholders of this fund were .84% and Total Fund
Operating Expenses were 1.74%. For the Working Assets Money Market Fund
(Standard shares), Other Expenses prior to reimbursement were .68% and Total
Fund Operating Expenses were 1.23% for the year ended June 30, 1998.
For the year ending June 30, 1999, the investment adviser has agreed to
reimburse fees and expenses incurred by the Citizens Income Fund to the extent
Other Expenses of this fund exceed .55% and Total Operating Expenses exceed
1.45%. For the Citizens Index Fund, Institutional Class Shares, the investment
adviser has agreed to reimburse fees and expenses to the extent Other Expenses
exceed .33% and Total Operating Expenses exceed .83%. For the Citizens Global
Equity Fund, the investment adviser has agreed to reimburse fees and expenses
to the extent Other Expenses exceed .80% and Total Fund Operating Expenses
exceed 2.05%."
On page 12, under Citizens Emerging Growth Fund, "Objective: Aggressive
growth," delete the first paragraph in its entirety and substitute the
following: "Our Citizens Emerging Growth Fund looks for aggressive gains by
investing in companies considered to be in the early, developing stages of
their life cycle and that offer the potential of accelerated earnings, revenue
growth or share price appreciation. During normal market conditions, the fund
seeks to achieve its investment objective by investing primarily in the common
stock of medium-sized companies whose market capitalizations, at the time of
acquisition, are in the $225 million to $13 billion range. The fund may also
invest in smaller or larger issuers."
On page 12, under Citizens Emerging Growth Fund, "Risk Factors," delete the
first paragraph in its entirety and insert the following: "Some of the small-
and medium-sized companies that the Citizens Emerging Growth Fund invests in
will be unseasoned and therefore may have some speculative characteristics.
Smaller companies in particular have unique risks. They may be dependent on
individual managers or have a harder time obtaining financing or market share.
Their shares are also more volatile and thinly traded. Medium-sized companies
generally involve less risk than smaller companies but are still more volatile
and subject to market and economic conditions than are larger companies. The
value of this fund can therefore have significant fluctuations. To moderate
this risk, we typically plan to hold between 30 and 50 companies in the fund.
As a result of active management and high turnover, the fund also will incur
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capital gains tax liabilities and other trading costs that may adversely impact
fund performance and shareholder return."
On page 17, under "Investment Minimums," delete the second sentence of the
second paragraph in its entirety and substitute the following: "For registered
investment advisers and retirement plans, at the discretion of Citizens Funds,
the minimum initial investment in Institutional Class shares is $250,000."
On page 17, under "Investment Minimums," second paragraph, fourth sentence,
delete the parenthetical phrase "($250,000 for registered investment advisers)"
and insert "($250,000 for registered investment advisers and retirement plans,
at the discretion of Citizens Funds)."
On page 20, under "Total Returns and Other Quotations," delete the second
paragraph in its entirety and substitute the following: "When we quote our
investment results, we sometimes compare them to unmanaged market indices such
as the Dow Jones Industrial Average, Standard & Poor's 500 ("S&P 500"), S&P
MidCap 400 Index, Financial Times World Index, Lehman Government/Corporate
Intermediate Index and the Russell 2000, as well as other data and rankings
from recognized independent publishers or sources such as Morningstar, Inc.,
Lipper, Inc., IBC's Money Fund Report, Bloomberg Magazine, Money Magazine,
Mutual Funds Magazine, Kiplinger's Personal Finance Magazine, Worth Magazine,
Co-op America Quarterly, The Green Money Journal and others."
<PAGE>
Rule 497(e)
File Nos. 2-80886
811-3626
Supplement dated February 25, 1999 to the Statement of Additional Information
of Citizens Funds dated October 27, 1998:
On page 6, under "Citizens Emerging Growth Fund," first paragraph, delete the
second and third sentences and substitute the following: "It attempts to
achieve this objective by investing in companies considered to be in the early,
developing stages of their life cycle and that offer the potential of
accelerated earnings, revenue growth or share price appreciation. During normal
market conditions, the fund invests primarily in the common stock of
medium-sized companies whose market capitalizations, at the time of
acquisition, are in the $225 million to $13 billion range. The fund may also
invest in smaller or larger issuers."
On page 6, under "Citizens Emerging Growth Fund," first paragraph, delete the
fourth and fifth sentences in their entirety.
On page 7, delete the first paragraph in its entirety and substitute the
following: "Some of the small- and medium-sized companies that the Citizens
Emerging Growth Fund invests in will be unseasoned and therefore may have some
speculative characteristics. Smaller companies in particular have unique risks.
They may be dependent on individual managers or have a harder time obtaining
financing or market share. Their shares are also more volatile and thinly
traded. Medium-sized companies generally involve less risk than smaller
companies but are still more volatile and subject to market and economic
conditions than are larger companies. The value of this fund can therefore have
significant fluctuations. To moderate this risk, we typically plan to hold
between 30 and 50 companies in the fund. As a result of active management and
high turnover, the fund also will incur capital gains tax liabilities and other
trading costs that may adversely impact fund performance and shareholder
return."
On page 11, under "The Value of Our Shares," fourth paragraph, delete the
second sentence in its entirety and substitute the following: "The funds are
currently open on each day, Monday through Friday, except New Year's Day,
Martin Luther King, Jr.'s Birthday (observed), Presidents' Day (observed), Good
Friday, Memorial Day (observed), Independence Day, Labor Day, Thanksgiving Day
and Christmas Day."
On page 15, delete the last paragraph in its entirety and substitute the
following: "When we quote our investment results, we sometimes compare them to
unmanaged market indices such as the Dow Jones Industrial Average, Standard &
Poor's 500 ("S&P 500"), S&P MidCap 400 Index, Financial Times World Index,
Lehman Government/Corporate Intermediate Index and the Russell 2000, as well as
other data and rankings from recognized independent publishers or sources such
<PAGE>
as Morningstar, Inc., Lipper, Inc., IBC's Money Fund Report, Bloomberg
Magazine, Money Magazine, Mutual Funds Magazine, Kiplinger's Personal Finance
Magazine, Worth Magazine, Co-op America Quarterly, The Green Money Journal and
others."
On page 18, under "Redemption Information," delete the fourth sentence in its
entirety and substitute the following: "The holidays on which the New York
Stock Exchange (and Citizens Funds) is closed are: New Year's Day, Martin
Luther King Jr.'s Birthday (observed), Presidents' Day (observed), Good Friday,
Memorial Day (observed), Independence Day, Labor Day, Thanksgiving Day and
Christmas Day." The fifth and sixth sentences should be deleted in their
entirety.
On page 19, in the second full paragraph, third sentence, delete the
parenthetical phrase at the end of the sentence and insert, "(or less than
$250,000 for registered investment advisers and retirement plans)."
