Law Offices
Drinker Biddle & Reath, LLP
Philadelphia National Bank Building
1345 Chestnut Street
Philadelphia, PA 19107-3496
Telephone: (215) 988-2700
Telex: 834684
Fax: (215) 988-2757
May 29, 1998
VIA EDGAR TRANSMISSION
Securities and Exchange Commission
Judiciary Plaza
450 Fifth Street, NW
Washington, DC 20549
Re: Pacific Horizon Funds, Inc.
Registration Nos. 2-81110 and 811-4293
Ladies and Gentlemen:
On behalf of Pacific Horizon Funds, Inc. ("Pacific Horizon") and pursuant
to Rule 497(e) of the Securities Act of 1933, attached herewith for filing
please find a supplement dated May 29, 1998 to Pacific Horizon's Aggressive
Growth, Asset Allocation, Blue Chip, California Tax-Exempt Bond, Capital
Income, Corporate Bond, Intermediate Bond, International Equity, National
Municipal Bond, Short-Term Government and U.S. Government Securities Funds'
Prospectuses dated June 24, 1997 and a supplement dated May 29, 1998 to
Pacific Horizon's Prime, Treasury, Treasury Only, Government, Tax-Exempt
Money and California Tax-Exempt Money Market Funds' Prospectuses dated June
16, 1997 and June 29, 1997.
Questions and comments concerning the enclosed materials may be directed
to the undersigned at (215) 988-1152.
Very truly yours,
/s/ Kenneth L. Greenberg
PACIFIC HORIZON FUNDS, INC.
Aggressive Growth, Asset Allocation, Blue Chip, California Tax-Exempt Bond,
Capital Income, Corporate Bond, Intermediate Bond, International Equity,
National Municipal Bond, Short-Term Government and U.S. Government
Securities Funds
Supplement to Prospectuses dated June 24, 1997
Effective April 28, 1998, Bank of America National Trust & Savings
Association ("Bank of America") has reassumed the administrative and
investment advisory responsibilities for Pacific Horizon Funds, Inc. and
investment advisory services for Master Investment Trust Series, I from
Robertson, Stephens & Company Investment Management, L.P. ("RSIM").
Effective June 15, 1998 the front-end sales load exemption in the Section
"When No Front-End Sales Load is Applied" relating to purchases through
FundStrategies will be revised to read as follows:
"any purchase through FundAdvisor or FundManager from BA Investment
Services, Inc." (However, existing clients who purchased the Funds load
waived through FundSelections, will be able to make additional purchases
without paying the front-end sales charge until July 15, 1998. Clients who
have Automatic Investment Programs may continue to invest no-load after
July 15, 1998.)"
Note: SRF shareholders will be able to continue to purchase A shares
no-load as described in the SRF shares prospectus dated June 24, 1997.
Effective June 15, 1998, the Sales Load as described in "The Shareholder
Guide A Shares Sales Load" will be revised as follows:
Amount of Sales Charge Sales Charge Dealer's Reallowance*
Transaction (as a % of (as approximate % (as a % of
offering price) of amount invested) offering price)
Less than $50,000 5.50% 5.82% 5.00%
$50,000 but less
than $100,000 4.50% 4.71% 4.00%
$100,000 but less
than $250,000 3.50% 3.63% 3.00%
$250,000 but less
than $500,000 2.50% 2.56% 2.00%
$500,000 but less
than $1,000,000 2.00% 2.04% 1.75%
* Dealer's reallowance may be changed periodically.
There is no initial sales charge on purchases of Class A shares of
$1 million or more. However, unless you participated in the Bank of
America Daily Advantage or Advantage Plus programs, a contingent deferred
sales charge of 1% will be imposed on redemptions made within 18 months
after purchase. The Distributor will pay dealers of record commissions on
purchases above $1 million in an amount equal to (I) 1.00% on sales up to
$5 million; (ii) 0.50% on the next $45 million; and (iii) 0.25% on sales
over $50 million.
Supplement dated May 29, 1998.
PACIFIC HORIZON FUNDS, INC.
Prime, Treasury, Government, Treasury Only, Tax-Exempt Money and
California Tax-Exempt Money Market Funds
Supplement to Prospectuses dated June 16, 1997 and June 29, 1997
Effective April 28, 1998, Bank of America National Trust & Savings
Association ("Bank of America") has reassumed the administrative and
investment advisory responsibilities for Pacific Horizon Funds, Inc. from
Robertson, Stephens & Company Investment Management, L.P. ("RSIM").
Supplement dated May 29, 1998.
