<PAGE> 1
ARMADA FUNDS
(THE "TRUST")
Supplement dated May 1, 1998 to Prospectus
dated December 23, 1997
RETAIL, INSTITUTIONAL AND B SHARES OF THE TOTAL RETURN
ADVANTAGE, INTERMEDIATE BOND, GNMA, BOND AND
ENHANCED INCOME FUNDS (THE "FUNDS")
Effective May 1, 1998, SEI Fund Resources (the "Administrator"), located at
1 Freedom Valley Drive, Oaks, Pennsylvania 19456, replaces PFPC Inc. as the
administrator to the Funds. SEI Fund Resources is an indirect, wholly-owned
subsidiary of SEI Investments Company ("SEI").
Under its Administration and Accounting Services Agreement with the Trust,
SEI provides the Funds with administrative services, including fund accounting,
regulatory reporting, necessary office space, equipment, personnel and
facilities. The Administrator also acts as shareholder servicing agent of the
Funds. SEI is entitled to receive with respect to the Funds an administrative
fee, computed daily and paid monthly, at the annual rate of .07% of the
aggregate average daily net assets of all of the investment funds of Armada up
to the first eighteen (18) billion dollars in assets, and .060% of the aggregate
average daily net assets of over eighteen (18) billion dollars in assets, and is
entitled to be reimbursed for its out-of-pocket expenses incurred on behalf of
the Funds.
RETAIL SHARES OF THE TOTAL RETURN ADVANTAGE,
INTERMEDIATE BOND, GNMA, BOND AND ENHANCED INCOME FUNDS
Effective May 1, 1998, the public offering price for Retail shares of the
Total Return Advantage, Intermediate Bond, GNMA and Bond Funds shall be the sum
of the net asset value of the Retail shares purchased plus a sales charge
assessed as follows:
<TABLE>
<CAPTION>
TOTAL SALES CHARGE DEALERS'
------------------------------- REALLOWANCE
AS A % OF AS A % OF NET AS A % OF
OFFERING PRICE ASSET VALUE OFFERING PRICE
AMOUNT OF TRANSACTION PER SHARE PER SHARE PER SHARE
--------------------- -------------- ------------- --------------
<S> <C> <C> <C>
less than $50,000................................... 4.75 5.00 4.75
$50,000 but less than $100,000...................... 4.00 4.20 4.00
$100,000 but less than $250,000..................... 3.75 3.90 3.75
$250,000 but less than $500,000..................... 2.50 2.80 2.50
$500,000 but less than $1,000,000................... 2.00 2.00 2.00
$1,000,000 or more.................................. 0.00 0.00 0.00
</TABLE>
Effective May 1, 1998, the public offering price for Retail shares of the
Enhanced Income Fund shall be the sum of the net asset value of the Retail
shares purchased plus a sales charge assessed as follows:
<TABLE>
<CAPTION>
TOTAL SALES CHARGE DEALERS'
------------------------------- REALLOWANCE
AS A % OF AS A % OF NET AS A % OF
OFFERING PRICE ASSET VALUE OFFERING PRICE
AMOUNT OF TRANSACTION PER SHARE PER SHARE PER SHARE
--------------------- -------------- ------------- --------------
<S> <C> <C> <C>
less than $100,000.................................. 2.75 2.83 2.50
$100,000 but less than $250,000..................... 1.75 1.78 1.50
$250,000 but less than $500,000..................... 1.00 1.01 0.75
$500,000 but less than $1,000,000................... 0.50 0.50 0.25
$1,000,000 or more.................................. 0.00 0.00 0.00
</TABLE>
1
<PAGE> 2
With respect to each Fund, a 1% sales charge, or .25% in the case of the
Enhanced Income Fund, will be assessed against a shareholder's fund account if
its value falls below $1,000,000 due to a redemption by the shareholder within
the first year following the initial investment of $1,000,000 or more.
With respect to purchases of $1,000,000 or more of a Fund, the adviser may
pay from its own funds a fee of 1.00%, or .25% in the case of the Enhanced
Income Fund, of the amount invested to the financial institution placing the
purchase order.
B SHARES OF THE TOTAL RETURN ADVANTAGE,
INTERMEDIATE BOND, GNMA, BOND
AND ENHANCED INCOME FUNDS (THE "FUNDS").
Effective May 6, 1998, the contingent deferred sales charge for B shares of
the Funds is assessed as follows:
<TABLE>
<CAPTION>
CONTINGENT DEFERRED
SALES CHARGE (AS A
NUMBER OF YEARS PERCENTAGE OF DOLLAR AMOUNT
ELAPSED SINCE PURCHASE SUBJECT TO THE CHARGE)
---------------------- ---------------------------
<S> <C>
Less than one............................................... 5.0%
More than one, but less than two............................ 5.0%
More than two, but less than three.......................... 4.0%
More than three, but less than four......................... 3.0%
More than four, but less than five.......................... 2.0%
After five years............................................ None
After eight years........................................... *
</TABLE>
- ---------------
* Conversion to Retail shares.
2
<PAGE> 3
ARMADA FUNDS
(THE "TRUST")
Supplement dated May 1, 1998 to Prospectus
dated December 23, 1997
RETAIL, INSTITUTIONAL AND B SHARES OF THE OHIO TAX EXEMPT
AND PENNSYLVANIA MUNICIPAL FUNDS (THE "FUNDS")
Effective May 1, 1998, SEI Fund Resources (the "Administrator"), located at
1 Freedom Valley Drive, Oaks, Pennsylvania 19456, replaces PFPC Inc. as the
administrator to the Funds. SEI Fund Resources is an indirect, wholly-owned
subsidiary of SEI Investments Company ("SEI").
Under its Administration and Accounting Services Agreement with the Trust,
SEI provides the Funds with administrative services, including fund accounting,
regulatory reporting, necessary office space, equipment, personnel and
facilities. The Administrator also acts as shareholder servicing agent of the
Funds. SEI is entitled to receive with respect to the Funds an administrative
fee, computed daily and paid monthly, at the annual rate of .07% of the
aggregate average daily net assets of all of the investment funds of Armada up
to the first eighteen (18) billion dollars in assets, and .060% of the aggregate
average daily net assets of over eighteen (18) billion dollars in assets, and is
entitled to be reimbursed for its out-of-pocket expenses incurred on behalf of
the Funds.
RETAIL SHARES OF THE OHIO TAX EXEMPT AND
PENNSYLVANIA MUNICIPAL FUNDS
Effective May 1, 1998, the public offering price for Retail shares of the
Ohio Tax Exempt and Pennsylvania Municipal Funds shall be the sum of the net
asset value of the Retail shares purchased plus a sales charge assessed as
follows:
<TABLE>
<CAPTION>
TOTAL SALES CHARGE DEALERS'
------------------------------- REALLOWANCE
AS A % OF AS A % OF NET AS A % OF
OFFERING PRICE ASSET VALUE OFFERING PRICE
AMOUNT OF TRANSACTION PER SHARE PER SHARE PER SHARE
--------------------- -------------- ------------- --------------
<S> <C> <C> <C>
less than $100,000.................................. 3.00 3.09 2.75
$100,000 but less than $250,000..................... 2.00 2.04 1.75
$250,000 but less than $500,000..................... 1.50 1.52 1.25
$500,000 but less than $1,000,000................... 1.00 1.01 0.75
$1,000,000 or more.................................. 0.00 0.00 0.00
</TABLE>
With respect to each Fund, a 1% sales charge will be assessed against a
shareholder's fund account if its value falls below $1,000,000 due to a
redemption by the shareholder within the first year following the initial
investment of $1,000,000 or more.
With respect to purchases of $1,000,000 or more of a Fund, the adviser may
pay from its own funds a fee of 1.00% of the amount invested to the financial
institution placing the purchase order.
3
<PAGE> 4
B SHARES OF THE OHIO TAX EXEMPT AND
PENNSYLVANIA MUNICIPAL FUNDS.
Effective May 6, 1998, the contingent deferred sales charge for B shares of
the Ohio Tax Exempt and Pennsylvania Municipal Funds is assessed as follows:
<TABLE>
<CAPTION>
CONTINGENT DEFERRED
SALES CHARGE (AS A
NUMBER OF YEARS PERCENTAGE OF DOLLAR AMOUNT
ELAPSED SINCE PURCHASE SUBJECT TO THE CHARGE)
---------------------- ---------------------------
<S> <C>
Less than one..................................... 5.0%
More than one, but less
than two........................................ 5.0%
More than two, but less
than three...................................... 4.0%
More than three, but less
than four....................................... 3.0%
More than four, but less
than five....................................... 2.0%
After five years.................................. None
After eight years................................. *
</TABLE>
- ---------------
* Conversion to Retail shares.
4
<PAGE> 5
ARMADA FUNDS
Supplement dated May 1, 1998 to Prospectus
dated December 23, 1997
RETAIL AND INSTITUTIONAL SHARES OF THE MONEY MARKET,
GOVERNMENT MONEY MARKET, TREASURY MONEY MARKET,
TAX EXEMPT MONEY MARKET AND PENNSYLVANIA TAX EXEMPT
MONEY MARKET FUNDS, AND B SHARES OF THE MONEY MARKET
AND TAX EXEMPT MONEY MARKET FUNDS (THE "FUNDS")
Effective May 1, 1998, SEI Fund Resources (the "Administrator"), located at
1 Freedom Valley Drive, Oaks, Pennsylvania 19456, replaces PFPC Inc. as the
administrator to the Funds. SEI Fund Resources is an indirect, wholly-owned
subsidiary of SEI Investments Company ("SEI").
Under its Administration and Accounting Services Agreement with the Trust,
SEI provides the Funds with administrative services, including fund accounting,
regulatory reporting, necessary office space, equipment, personnel and
facilities. The Administrator also acts as shareholder servicing agent of the
Funds. SEI is entitled to receive with respect to the Funds an administrative
fee, computed daily and paid monthly, at the annual rate of .07% of the
aggregate average daily net assets of all of the investment funds of Armada up
to the first eighteen (18) billion dollars in assets, and .060% of the aggregate
average daily net assets of over eighteen (18) billion dollars in assets, and is
entitled to be reimbursed for its out-of-pocket expenses incurred on behalf of
the Funds.
B SHARES OF THE MONEY MARKET
AND TAX EXEMPT MONEY MARKET FUNDS
Effective May 6, 1998, the contingent deferred sales charge for B shares of
the Money Market and Tax Exempt Money Market Funds is assessed as follows:
<TABLE>
<CAPTION>
CONTINGENT DEFERRED
SALES CHARGE (AS A
NUMBER OF YEARS PERCENTAGE OF DOLLAR AMOUNT
ELAPSED SINCE PURCHASE SUBJECT TO THE CHARGE)
---------------------- ---------------------------
<S> <C>
Less than one............................................... 5.0%
More than one, but less than two............................ 5.0%
More than two, but less than three.......................... 4.0%
More than three, but less than four......................... 3.0%
More than four, but less than five.......................... 2.0%
After five years............................................ None
After eight years........................................... *
</TABLE>
- ---------------
* Conversion to Retail shares.
5
<PAGE> 6
ARMADA FUNDS
(THE "TRUST")
Supplement dated May 1, 1998 to Prospectus
dated December 23, 1997
RETAIL, INSTITUTIONAL AND B SHARES OF THE SMALL CAP VALUE,
EQUITY GROWTH, EQUITY INCOME, SMALL CAP GROWTH,
INTERNATIONAL EQUITY AND CORE EQUITY FUNDS (THE "FUNDS")
Effective May 1, 1998, SEI Fund Resources (the "Administrator"), located at
1 Freedom Valley Drive, Oaks, Pennsylvania 19456, replaces PFPC Inc. as the
administrator to the Funds. SEI Fund Resources is an indirect, wholly-owned
subsidiary of SEI Investments Company ("SEI").
Under its Administration and Accounting Services Agreement with the Trust,
SEI provides the Funds with administrative services, including fund accounting,
regulatory reporting, necessary office space, equipment, personnel and
facilities. The Administrator also acts as shareholder servicing agent of the
Funds. SEI is entitled to receive with respect to the Funds an administrative
fee, computed daily and paid monthly, at the annual rate of .07% of the
aggregate average daily net assets of all of the investment funds of Armada up
to the first eighteen (18) billion dollars in assets, and .060% of the aggregate
average daily net assets of over eighteen (18) billion dollars in assets, and is
entitled to be reimbursed for its out-of-pocket expenses incurred on behalf of
the Funds.
RETAIL SHARES OF THE SMALL CAP VALUE, EQUITY GROWTH,
EQUITY INCOME, SMALL CAP GROWTH, INTERNATIONAL EQUITY
AND CORE EQUITY FUNDS
Effective May 1, 1998, the public offering price for Retail shares of the
Small Cap Value, Equity Growth, Equity Income, Small Cap Growth, International
Equity and Core Equity Funds shall be the sum of the net asset value of the
Retail shares purchased plus a sales charge assessed as follows:
<TABLE>
<CAPTION>
TOTAL SALES CHARGE DEALERS'
------------------------------ REALLOWANCE
AS A % OF AS A % OF NET AS A % OF
OFFERING PRICE ASSET VALUE OFFERING PRICE
AMOUNT OF TRANSACTION PER SHARE PER SHARE PER SHARE
--------------------- -------------- ------------- --------------
<S> <C> <C> <C>
less than $25,000....................................... 5.50 5.80 5.50
$25,000 but less than $50,000........................... 5.25 5.50 5.25
$50,000 but less than $100,000.......................... 4.75 5.00 4.75
$100,000 but less than $250,000......................... 3.75 3.90 3.75
$250,000 but less than $500,000......................... 3.00 3.10 3.00
$500,000 but less than $1,000,000....................... 2.00 2.00 2.00
$1,000,000 or more...................................... 0.00 0.00 0.00
</TABLE>
With respect to each of the above-mentioned Funds, a 1% sales charge will
be assessed against a shareholder's fund account if its value falls below
$1,000,000 due to a redemption by the shareholder within the first year
following the initial investment of $1,000,000 or more.
With respect to purchases of $1,000,000 or more of a Fund, the adviser may
pay from its own funds a fee of 1.00% of the amount invested to the financial
institution placing the purchase order.
6
<PAGE> 7
B SHARES OF THE SMALL CAP VALUE, EQUITY GROWTH,
EQUITY INCOME, SMALL CAP GROWTH, INTERNATIONAL
EQUITY AND CORE EQUITY FUNDS (THE "FUNDS").
Effective May 6, 1998, the contingent deferred sales charge for B shares of
the Funds is assessed as follows:
<TABLE>
<CAPTION>
CONTINGENT DEFERRED
SALES CHARGE (AS A
NUMBER OF YEARS PERCENTAGE OF DOLLAR AMOUNT
ELAPSED SINCE PURCHASE SUBJECT TO THE CHARGE)
---------------------- ---------------------------
<S> <C>
Less than one............................................... 5.0%
More than one, but less than two............................ 5.0%
More than two, but less than three.......................... 4.0%
More than three, but less than four......................... 3.0%
More than four, but less than five.......................... 2.0%
After five years............................................ None
After eight years........................................... *
</TABLE>
- ---------------
* Conversion to Retail shares.
7
