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PACIFIC HORIZON FUNDS, INC.
Corporate Bond Fund
Supplement dated August 30, 1996
to Prospectus dated July 1, 1996
The Board of Directors of Pacific Horizon Funds, Inc. (the "Company") has
decided to withdraw the Corporate Bond Fund's (the "Fund") investment in the
Corporate Bond Portfolio (the "Master Portfolio") of Master Investment Trust,
Series I (the "Master Trust") and to engage an investment adviser to manage
directly the assets of the Fund in accordance with its investment objective,
policies and limitations (the "Reorganization").
Accordingly, effective September 1, 1996, the Fund will no longer seek to
achieve its investment objective by investing all of its investable assets in
the Master Portfolio and will invest directly in portfolio securities. In
connection with the Reorganization, the Company has entered into a new
investment advisory agreement (the "Advisory Agreement") with Bank of America
National Trust and Savings Association ("Bank of America") for the Fund. The
terms of the Advisory Agreement are substantially the same as the terms of the
existing investment advisory agreement between Bank of America and the Master
Trust with respect to the Master Portfolio and provide for the same advisory fee
payable to Bank of America.
In addition, prior to the Reorganization, Concord Holding Corporation
("Concord") was entitled to receive an administration fee payable at the annual
rate of 0.15% of the Fund's average daily net assets and 0.05% of the Master
Portfolio's average daily net assets. Effective September 1, 1996, Concord is
entitled to receive an administration fee payable at the annual rate of 0.20% of
the Fund's average daily net assets.
TFI-0004
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PACIFIC HORIZON FUNDS, INC.
International Equity Fund
Supplement dated August 30, 1996
to Prospectus dated July 1, 1996
1. The Board of Directors of Pacific Horizon Funds, Inc. (the "Company") has
decided to withdraw the International Equity Fund's (the "Fund") investment in
the International Equity Portfolio (the "Master Portfolio") of Master Investment
Trust, Series I (the "Master Trust") and to engage an investment adviser to
manage directly the assets of the Fund in accordance with its investment
objective, policies and limitations (the "Reorganization").
Accordingly, effective September 1, 1996, the Fund will no longer seek to
achieve its investment objective by investing all of its investable assets in
the Master Portfolio and will invest directly in portfolio securities. In
connection with the Reorganization, the Company has entered into a new
investment advisory agreement (the "Advisory Agreement") with Bank of America
National Trust and Savings Association ("Bank of America") for the Fund. The
terms of the Advisory Agreement are substantially the same as the terms of the
existing investment advisory agreement between Bank of America and the Master
Trust with respect to the Master Portfolio and provide for the same advisory fee
payable to Bank of America.
In addition, prior to the Reorganization, Concord Holding Corporation
("Concord") was entitled to receive an administration fee payable at the annual
rate of 0.15% of the Fund's average daily net assets and 0.05% of the Master
Portfolio's average daily net assets. Effective September 1, 1996, Concord is
entitled to receive an administration fee payable at the annual rate of 0.20% of
the Fund's average daily net assets.
2. The second paragraph under the heading "Shareholder Guide -- How To Buy
Shares -- How Are Shares Priced?" on page 14 of the prospectus is amended and
restated in its entirety as follows:
Net asset value is determined as of the end of regular trading hours on
the New York Stock Exchange (the "Exchange") (currently 4:00 p.m.
Eastern time) on days the Exchange is open.
3. The first paragraph under the heading "Shareholder Guide -- How To Buy Shares
- -- What Price Will I Receive When I Buy Shares?" on page 19 of the prospectus is
amended and restated in its entirety as follows:
Your shares will be purchased at the Fund's public offering price
calculated at the next close of regular trading on the Exchange
(currently 4:00 p.m. Eastern time) after your purchase order is received
in proper form by the Fund's transfer agent, BISYS Fund Services, Inc.
(the "Transfer Agent"), at its Columbus office.
4. Throughout the second paragraph under the heading "Shareholder Guide -- How
To Buy Shares -- What Price Will I Receive When I Buy Shares?" on pages 19 and
20 of the prospectus all references to 12:00 p.m. Eastern time shall be changed
to 4:00 p.m. Eastern time.
IEQ-0009
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PACIFIC HORIZON FUNDS, INC.
National Municipal Bond Fund, California Tax-Exempt Bond Fund,
Aggressive Growth Fund, U.S. Government Securities Fund,
Capital Income Fund, Intermediate Bond Fund, Blue Chip Fund,
Asset Allocation Fund, Corporate Bond Fund and
International Equity Fund
Supplement dated August 30, 1996
to Statement of Additional Information
dated July 1, 1996
1. The Board of Directors of Pacific Horizon Funds, Inc. (the "Company") has
decided to withdraw the Corporate Bond Fund's investment in the Corporate
Bond Portfolio (the "Corporate Bond Master Portfolio") of Master
Investment Trust, Series I (the "Master Trust"); to withdraw the
International Equity Fund's investment in the International Equity
Portfolio (the "International Equity Master Portfolio") of the Master
Trust; and to engage an investment adviser to manage directly the assets of
the Corporate Bond and International Equity Funds (the "Funds") in
accordance with their respective investment objective, policies and
limitations (the "Reorganization").
Accordingly, effective September 1, 1996, the Corporate Bond and
International Equity Funds will no longer seek to achieve their investment
objectives by investing all of their investable assets in the Corporate
Bond and International Equity Master Portfolios, respectively. The Funds
will invest directly in portfolio securities. In connection with the
Reorganization, the Company has entered into new investment advisory
agreements (the "Advisory Agreements") with Bank of America National Trust
and Savings Association ("Bank of America") for the Funds. The terms of
the Advisory Agreements are substantially the same as the terms of existing
investment advisory agreements between Bank of America and the Master Trust
with respect to the Corporate Bond Master Portfolio and International
Equity Master Portfolio. The Advisory Agreements provide for the same
advisory fee payable to Bank of America.
In addition, prior to the Reorganization, Concord Holding Corporation
("Concord") was entitled to receive an administration fee payable at the
annual rate of 0.15% of each Fund's average daily net assets and 0.05% of
the Corporate Bond and International Equity Master Portfolios' average
daily net assets. Effective September 1, 1996, Concord is entitled to
receive an administration fee payable at the annual rate of 0.20% of each
Fund's average daily net assets.
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2. The first paragraph under the heading "ADDITIONAL PURCHASE
AND REDEMPTION INFORMATION - Supplementary Redemption Information:
Capital Income Fund, U.S. Government Securities Fund, California
Tax-Exempt Bond Fund, Intermediate Bond Fund, Blue Chip Fund, Asset
Allocation Fund, Corporate Bond Fund, National Municipal Bond Fund and
International Equity Fund" on pages 71 and 72 of the statement of
additional information is amended and restated in its entirety as
follows:
Shares in the Capital Income Fund, U.S. Government Securities
Fund, California Tax-Exempt Bond Fund, Intermediate Bond Fund,
Blue Chip Fund, Asset Allocation Fund, Corporate Bond Fund,
National Municipal Bond Fund and International Equity Fund for
which orders for wire redemption are received on a business day
before the close of regular trading hours on the New York Stock
Exchange (currently 4:00 p.m. Eastern time) will be redeemed as of
the close of regular trading hours on such Exchange and the
proceeds of redemption (less any applicable contingent deferred
sales charge on certain A Shares subject to the Large Purchase
Exemption) will normally be wired in federal funds on the next
business day to the commercial bank specified by the investor on
the Account Application (or other bank of record on the
investor's file with the Transfer Agent). To qualify to use the
wire redemption privilege, the payment for Fund shares must be
drawn on, and redemption proceeds paid to, the same bank and
account as designated on the Account Application (or other bank
of record as described above). If the proceeds of a particular
redemption are to be wired to another bank, the request must be
in writing and signature guaranteed. Shares for which orders for
wire redemption are received after the close of regular trading
hours on the New York Stock Exchange or on a non-business day
will be redeemed as of the close of trading on such Exchange on
the next day on which shares of the particular Fund are priced
and the proceeds (less any applicable contingent deferred sales
charge on certain A Shares subject to the Large Purchase
Exemption) will normally be wired in federal funds on the next
business day thereafter. Redemption proceeds (less any
applicable contingent deferred sales charge on certain A Shares
subject to the Large Purchase Exemption) will be wired to a
correspondent member bank if the investor's designated bank is
not a member of the Federal Reserve System. Immediate
notification by the correspondent bank to the investor's bank is
necessary to avoid a delay in crediting the funds to the
investor's bank account.
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Proceeds of less than $1,000 will be mailed to the investor's
address.
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