<PAGE>
Supplement dated June 1, l995 to Prospectus of Gradison-McDonald
Opportunity Value Fund Dated August 3, l994
1- The following replaces the Expense Summary on page 2 of the Prospectus:
EXPENSE SUMMARY
Shareholder Transaction Expenses
Maximum sales load on purchases . . . . . . . . . none
Annual Fund Operating Expenses
(as a percentage of average net assets)
Management fees . . . . . . . . . . . . . .65%
12b-1 fees . . . . . . . . . . . . . . . . .50%
Other expenses . . . . . . . . . . . . . . .30%
-----
Total Fund Operating Expenses 1.45%
=====
The Fund is sold without a front-end or back-end sales charge. The Fund
pays an annual asset-based distribution expense of .25% and a service fee
of .25% of net assets. As a result of the distribution expense fee, long-
term shareholders may pay more than the economic equivalent of the maximum
sales charge permitted under the rules of the National Association of
Securities Dealers. However, in order for a Fund investor to exceed the
amount of the maximum permitted front-end sales charge, a continuous
investment in the Fund for 25 years would be required.
Example:
You would pay the following expenses on a $1,000 investment assuming
(1) 5% annual return* and (2) redemption at the end of each period:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$ 15 $ 46 $ 79 $ 174
*The 5% annual return is a standardized rate prescribed for use by all
mutual funds for the purpose of this example and does not represent the
past or future return of the Fund.
The purpose of the preceding table is to assist you in understanding the
various costs and expenses that an investor in the Fund will bear directly
and indirectly. (For more information about expenses, see "Purchases and
Redemptions," and "Management of the Fund".)
The example should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown.
2- The following is added to the end of the "Management of the Fund"
section:
<PAGE>
Effective June 1, l995, McDonald, in lieu of providing to the Fund
shareholder services on a cost reimbursement basis and data processing
services pursuant to a data processing agreement, commenced providing such
services to the Fund pursuant to a Transfer Agency and Accounting Services
Agreement. That Agreement provides for the payment to McDonald of $18.25
per non-zero balance shareholder account plus out-of-pocket costs for
acting as transfer agent and an accounting services fee based on the
Fund's average daily net assets at an annual rate of .03% on the first
$100 million, .02% of the next $100 million, and .01% on any amount in
excess of $200 million, with a minimum annual fee of $40,000 per year.
Also effective June 1, l995, the investment advisory fee was reduced .25%
at all levels and the distribution expense fee was increased by .25%.
Additionally, the distribution fee became payable on all assets of the
Fund instead of only the assets attributable to a Gradison-McDonald
Investment Consultant.
<PAGE>
Supplement dated June 1, l995 to Prospectus of Gradison-McDonald
Established Value Fund Dated August 3, l994
1- The following replaces the Expense Summary on page 2 of the Prospectus:
EXPENSE SUMMARY
Shareholder Transaction Expenses
Maximum sales load on purchases . . . . . . . . . none
Annual Fund Operating Expenses
(as a percentage of average net assets)
Management fees . . . . . . . . . . . . . .57%
12b-1 fees . . . . . . . . . . . . . . . . .50%
Other expenses . . . . . . . . . . . . . . .16%
-----
Total Fund Operating Expenses 1.23%
=====
The Fund is sold without a front-end or back-end sales charge. The Fund
pays an annual asset-based distribution expense of .25% and a service fee
of .25% of net assets. As a result of the distribution expense fee, long-
term shareholders may pay more than the economic equivalent of the maximum
sales charge permitted under the rules of the National Association of
Securities Dealers. However, in order for a Fund investor to exceed the
amount of the maximum permitted front-end sales charge, a continuous
investment in the Fund for 25 years would be required.
Example:
You would pay the following expenses on a $1,000 investment assuming
(1) 5% annual return* and (2) redemption at the end of each period:
1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
$ 13 $ 39 $ 68 $ 149
*The 5% annual return is a standardized rate prescribed for use by all
mutual funds for the purpose of this example and does not represent the
past or future return of the Fund.
The purpose of the preceding table is to assist you in understanding the
various costs and expenses that an investor in the Fund will bear directly
and indirectly. (For more information about expenses, see "Purchases and
Redemptions," and "Management of the Fund".)
The example should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown.
2- The following is added to the end of the "Management of the Fund"
section:
<PAGE>
Effective June 1, l995, McDonald, in lieu of providing to the Fund
shareholder services on a cost reimbursement basis and data processing
services pursuant to a data processing agreement commenced providing such
services to the Fund pursuant to a Transfer Agency and Accounting Services
Agreement. That Agreement provides for the payment to McDonald of $18.25
per non-zero balance shareholder account plus out-of-pocket costs for
acting as transfer agent and an accounting services fee based on the
Fund's average daily net assets at an annual rate of .03% on the first
$100 million, .02% of the next $100 million, and .01% on any amount in
excess of $200 million, with a minimum annual fee of $40,000 per year.
Also effective June 1, l995, the investment advisory fee was reduced .25%
at all levels and the distribution expense fee was increased by .25%.
Additionally, the distribution fee became payable on all assets of the
Fund instead of only the assets attributable to a Gradison-McDonald
Investment Consultant.
<PAGE>
Supplement dated June 1, l995 to Statement of Additional Information of
Gradison Growth Trust Dated August 3, l994
The following modifies information on page 14.
Effective June 1, l995, the investment advisory fee was reduced .25% at
all levels and the distribution expense fee was increased by .25%.
Additionally, the distribution fee became payable on all assets of the
Fund instead of only the assets attributable to a Gradison-McDonald
Investment Consultant.
The following modifies information on pages 13-17.
Effective June 1, l995, McDonald, in lieu of providing to the Fund
shareholder services on a cost reimbursement basis, pursuant to the
investment advisory agreement, and data processing services pursuant to a
data processing agreement commenced providing such services to the Fund
pursuant to a Transfer Agency and Accounting Services Agreement. That
Agreement provides for the payment to McDonald of $18.25 per non-zero
balance shareholder account plus out-of-pocket costs for acting as
transfer agent and an accounting services fee based on the Fund's average
daily net assets at an annual rate of .03% on the first $100 million, .02%
of the next $100 million, and .01% on any amount in excess of $200
million, with a minimum annual fee of $40,000 per year. Also effective
June 1, l995, the investment advisory fee was reduced .25% at all levels
and the distribution expense fee was increased by .25%.
The following modifies information on page 18.
Effective May 1, l995, the resignations of Walter G. Alpaugh and George
Rieveschl, Jr. as trustees of the Trust became effective and the following
individuals became trustees:
Theodore H. Emmerich, 1201 Edgecliff Place, Cincinnati, Ohio 45206.
Trustee. Until l986, managing partner (Cincinnati office) Ernst and Young
(Public accountants); Director of Carillon Fund, Inc., and Trustee of
Carillon Investment Trust (Investment companies); Director of Premier
Underwriters, Inc. and Cincinnati Milacron Commercial Corp; Trustee of
GCT, GMMCT, and Gradison-McDonald Cash Reserves Trust (GMCR).
Richard A. Rankin, 434 Scott Street, Covington, Kentucky, 410011. Trustee.
Partner, Rankin and Rankin (Public Accountants); Trustee of GCT, GMMCT,
and GMCR.
Jerome E. Schnee, 11558 Stable Watch Court, Cincinnati, Ohio 45249.
Trustee. Professor of Management, College of Business Administration,
University of Cincinnati; Director of National Sanitary Supply Co. and
Rotor Rooter Inc.; Trustee of GCT, GMMCT, and GMCR.
<PAGE>
Also effective May 1, l995, Patricia Jamieson replaced Gordon Price as
Treasurer of the Trust and Mark A. Frietch replaced Leigh Judd as
Assistant Treasurer.
Patricia Jamieson, 800 Superior Avenue, Cleveland, Ohio 44114. Treasurer.
Senior Vice President of McDonald.
Mark A. Frietch, 580 Walnut Street, Cincinnati, Ohio, 45202.
Assistant Treasurer. Assistant Treasurer of GCT, GMMCT, and GMCR (since
May l995); prior to that Controller of Gradison-McDonald Mutual Funds
(since August l992); prior to that Financial Consultant and Assistant
Controller of Union Central Life Insurance Company.
<PAGE>
