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You may obtain the current 7-day yield by calling (800) 346-2087.
7. WHO IS THE INVESTMENT ADVISER?
Bank of America NT&SA, the investment adviser, and its affiliates have
over $50 billion in assets under management, including over $10 billion
in mutual funds.
8. HOW CAN I PURCHASE SHARES?
Complete the application in the Prospectus enclosed and attach a check
for as little as $500, or $50 per month with automatic investment.
9. HOW CAN I REDEEM SHARES?
Redemptions can be made by sending a written request to the Prime Fund,
c/o Pacific Horizon Funds, Inc., P.O. Box 80221, Los Angeles, California
90080-9909, by writing a check on the account, or by requesting a wire.
The minimum for a wire redemption is $1,000.
10. HOW OFTEN ARE DISTRIBUTIONS MADE?
Dividends are accrued daily and paid monthly. You can have your
distributions sent to you directly, or you can have the dividends
reinvested in the Fund to increase your holdings.
11. WHAT OTHER SERVICES ARE AVAILABLE?
Pacific Horizon Funds, Inc. provides a whole host of services to better
serve shareholders including fund performance reporting, automated
investment and withdrawal plans, and retirement plans. Please call for
information on the entire family of Pacific Horizon Funds by dialing
1-800-332-3863.
THIS FUND PROFILE CONTAINS KEY INFORMATION ABOUT THE FUND. MORE DETAILS
APPEAR IN THE FUND'S ACCOMPANYING PROSPECTUS.
COPPRMMPROF
PRIME FUND
FUND PROFILE
APRIL 1, 1996
NOT FDIC INSURED
BANK OF AMERICA, NT&SA
INVESTMENT ADVISER
CONCORD FINANCIAL GROUP, INC.,
DISTRIBUTOR, MEMBER NASD
PACIFIC HORIZON MUTUAL FUNDS
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INFORMATION SUMMARY
1. WHAT IS THE FUND'S OBJECTIVE?
The Fund is a money market fund which seeks to provide high current income and
stability of principal.
2. IN WHAT DOES THE FUND INVEST?
The Fund invests in a diversified portfolio of short-term U.S.
dollar-denominated money market instruments, including bank certificates of
deposit and bankers' acceptances, commercial paper and repurchase agreements,
obligations issued or guaranteed by the U.S. government or its agencies and
instrumentalities, and in bank obligations and commercial paper of foreign
issuers, with remaining maturities of thirteen months or less from the date of
purchase.
3. WHAT ARE THE RISKS?
The Fund is not insured by the FDIC, and while it attempts to maintain a $1 per
share price, there are no guarantees that it will be able to do so. The Prime
Fund may purchase certificates of deposit and bankers' acceptances issued or
supported by the credit of foreign branches of domestic banks and domestic
branches of foreign banks, as well as commercial paper issued by foreign
issuers, which present greater risk than funds investing only in U.S. debt
obligations. Such risks include future political and economic developments.
4. IS THE FUND APPROPRIATE FOR ME?
This Fund is appropriate for investors seeking relative safety and accessibility
of their investment. A money market fund, over time, has offered investors the
least amount of principal risk, as well as the least amount of return potential.
5. WHAT ARE THE FEES OR EXPENSES?
NO LOAD or sales commission is charged to invest in the Fund or reinvest
dividends. No fees will be charged for reinvested dividends, exchanges between
other Pacific Horizon funds or redemptions from the Fund. Additionally there are
no 12b-1 fees. The operating expenses, as a percentage of average net assets,
charged directly by the Fund are described in the fee table below:
<TABLE>
<S> <C> <C>
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SHAREHOLDER TRANSACTION EXPENSE
Maximum Sales Load on Purchases None
Sales Load on Reinvested Dividends None
Deferred Sales Load* None
Redemption and Exchange Fees None
ESTIMATED ANNUAL OPERATING EXPENSES
(as a percentage of Average Net Assets)
Management Fees 0.20%
All other Expenses
Special Management Fees 0.32%
Other Expenses 0.05%
Total Other Expenses 0.37%
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Total Fund Operating Expenses 0.57%
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</TABLE>
The investment adviser and administrator may voluntarily waive a portion of
their respective fees from time to time.
* No contingent deferred sales charge ("CDSC") is charged, except that shares of
the Fund acquired through exchange of Class B shares of Time Horizon Funds
will be subject to a CDSC of up to 5%.
EXAMPLE**
You would pay the following expenses on a $1,000 investment, assuming (1) a 5%
annual return and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
1 YR 3 YR 5 YR 10 YR
- ---- ---- ---- -----
<S> <C> <C> <C>
$6 $ 18 $ 32 $71
</TABLE>
Note: The preceding example should not be considered a representation of past or
future investment returns and operating expenses. Actual investment returns and
operating expenses may be more or less than those shown.
** The Example does not include deduction at redemption of a CDSC for shares of
the Fund acquired through exchange of Class B shares of Time Horizon Funds.
6. THE FOLLOWING IS A BAR GRAPH THAT SHOWS THE PERFORMANCE OF THE FUND OVER THE
PAST TEN (10) CALENDAR YEARS:
86 87 88 89 90 91 92 93 94 95
6.5% 6.5% 7.3% 9.0% 8.0% 6.2% 3.7% 2.9% 3.9% 5.6%
Past performance is no guarantee of future results.
SEC 7-day yield as of 3/31/96: 4.83%
