<PAGE> 1
ARMADA FUNDS
Supplement dated October 5, 2000
to the Statement of Additional Information Dated October 2, 2000
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE STATEMENT OF ADDITIONAL INFORMATION AND SHOULD BE READ IN CONJUNCTION WITH
THE STATEMENT OF ADDITIONAL INFORMATION.
Effective October 16, 2000, the Statement of Additional Information is amended
by deleting the first, second and third paragraphs on page 103 in the section
entitled "SHAREHOLDER SERVICES PLANS" and replacing them with the following
information:
"The Trust has implemented a Shareholder Services Plan (with respect to A
Shares), the B Shares Plan, and the C Shares Plan pursuant to which the Trust
may enter into agreements with financial institutions pertaining to the
provision of administrative services to their customers who are the beneficial
owners of a Fund's A Shares, B Shares or C Shares, respectively, in
consideration for payments for such services.
The Shareholder Services Plan provides for the payment (on an annualized basis)
of:
(i) Up to 0.25% for the International Equity, Small Cap Value, Small Cap
Growth, Equity Growth, Tax Managed Equity, Core Equity, Equity Index,
Equity Income, Balanced Allocation, Total Return Advantage, Bond,
Intermediate Bond, GNMA, Mid Cap Growth, U.S. Government Income, Large Cap
Ultra, Strategic Income Bond, Money Market, Government Money Market,
Treasury Money Market and Treasury Plus Money Market Funds;
(ii) Up to 0.15% for the Ohio Municipal Money Market, Pennsylvania Tax Exempt
Money Market and Tax Exempt Money Market;
(iii) Up to 0.10% for the Limited Maturity Bond, Ohio Tax Exempt Bond,
Pennsylvania Municipal Bond, National Tax Exempt Bond and Michigan
Municipal Bond Funds, of the net asset value attributable to A Shares held
by a financial institution's customers.
The B Shares Plan provides for the payment (on an annualized basis) of:
(i) Up to 0.25% for the International Equity, Small Cap Value, Small Cap
Growth, Equity Growth, Tax Managed Equity, Core Equity, Equity Index,
Equity Income, Balanced Allocation, Total Return Advantage, Bond,
Intermediate Bond, Limited Maturity Bond, GNMA, Mid Cap Growth, U.S.
Government Income, Large Cap Ultra, Money Market and Strategic Income Bond
Funds;
(ii) Up to 0.10% for the Ohio Tax Exempt Bond, Pennsylvania Municipal Bond,
National Tax Exempt Bond and Michigan Municipal Bond Funds, of the net
asset value attributable to B Shares held by a financial institution's
customers."
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
ARM-SU-002-0100
<PAGE> 2
ARMADA FUNDS
EQUITY, BALANCED, FIXED INCOME AND TAX FREE BOND FUNDS
CLASS A, B AND C SHARES (RETAIL)
Supplement dated October 5, 2000
to the Prospectus Dated October 2, 2000
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE PROSPECTUS AND SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS.
Effective October 16, 2000, Shareholder Servicing Fees for the Limited Maturity
Bond Fund - Class B Shares will increase from 0.10% to 0.25% of the net asset
value of Shares of the Fund. The Prospectus is amended as follows to reflect
this change:
- Delete the column titled Limited Maturity Bond Fund -- Class B of the "ANNUAL
FUND OPERATING EXPENSES" table on page 44 and replace it with the following
information:
<TABLE>
<CAPTION>
----------------------------------------------------------------------------
LIMITED MATURITY
SHAREHOLDER FEES BOND FUND
(PAID DIRECTLY FROM YOUR INVESTMENT) CLASS B
----------------------------------------------------------------------------
<S> <C>
Maximum Sales Charge (Load) Imposed on Purchases (as
percentage of offering price)(1) None
----------------------------------------------------------------------------
Maximum Deferred Sales Charge (Load) (as percentage of net
asset value) 5.00%(2)
----------------------------------------------------------------------------
Maximum Sales Charge (Load) Imposed on Reinvested
Dividends and other distributions (as a percentage of
offering price) None
----------------------------------------------------------------------------
Redemption Fee (as a percentage of amount redeemed, if
applicable) None
----------------------------------------------------------------------------
Exchange Fee None
----------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES(4)
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
----------------------------------------------------------------------------
Investment Advisory Fees 0.45%
----------------------------------------------------------------------------
Distribution and Service (12b-1) Fees 1.00%
----------------------------------------------------------------------------
Other Expenses 0.19%
----------------------------------------------------------------------------
Total Annual Fund Operating Expenses 1.64%
----------------------------------------------------------------------------
</TABLE>
- Delete footnotes #4 and #6 on page 46 referring to the tables entitled "ANNUAL
FUND OPERATING EXPENSES," on pages 44 and 45, in the section entitled "FUND
FEES AND EXPENSES" and replace them with the following information:
(4) The Trust has implemented plans imposing shareholder
servicing fees with respect to Class A, Class B and Class
C Shares of each Fund. Pursuant to such plans, the Trust
enters into shareholder servicing agreements with certain
financial institutions under which they agree to provide
shareholder administrative services to their customers who
beneficially own Class A, Class B and Class C Shares in
consideration for the payment of up to 0.25% (on an
annualized basis) of the net asset value of such Class A,
Class B or Class C Shares of the Funds (with the exception
of Class A Shares of the Limited Maturity Bond Fund, which
pays 0.10%). Shareholder servicing fees paid by Class A
Shares are included in "Other Expenses" and fees paid by
Class B and Class C Shares are included in "Distribution
and Service (12b-1) Fees" in the table above. For further
information concerning these plans, see "Shareholder
Services Plans" in the Statement of Additional
Information.
1
<PAGE> 3
(6) Each of these Funds' total actual annual operating
expenses for Class A, Class B and Class C Shares for the
most recent fiscal year were less than the amounts shown
above because the Adviser and Distributor each waived a
portion of the fees in order to keep total operating
expenses at a specified level. With these fee waivers,
each Fund's actual total operating expenses for Class A,
Class B and Class C Shares were, respectively:
<TABLE>
<S> <C> <C> <C>
Intermediate Bond Fund 0.83% 1.54% 1.54%
Limited Maturity Bond Fund 0.64% 1.54% 1.54%
Total Return Advantage Fund 0.73% 1.47% N/A
</TABLE>
The Adviser and Distributor each expects to continue these
waivers so that total operating expenses for Class A, Class B
and Class C shares for the current fiscal year will be as
follows. These fee waivers remain in place as of the date of
this prospectus, but the Adviser and/or Distributor may
discontinue all or part of these waivers at any time.
<TABLE>
<S> <C> <C> <C>
Intermediate Bond Fund 0.84% 1.54% 1.54%
Limited Maturity Bond Fund 0.66% 1.54% 1.54%
Total Return Advantage Fund 0.74% 1.47% 1.47%
</TABLE>
- Delete the fourth row, headed Limited Maturity Bond Fund, of the Examples
chart on page 47 and replace it with the following information:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
Limited Maturity Bond Fund
Class A Shares $358 $536 $ 728 $1,284
Class B Shares(1) $667 $917 $1,092 $1,728
Class B Shares(2) $167 $517 $ 892 $1,728
Class C Shares(1) $267 $517 $ 892 $1,944
Class C Shares(2) $167 $517 $ 892 $1,944
</TABLE>
(1) If you sell your shares at the end of the period.
(2) If you do not sell your shares at the end of the period.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
ARM-SU-003-0100
2
<PAGE> 4
ARMADA FUNDS
MONEY MARKET FUNDS
CLASS A, B AND C SHARES (RETAIL)
Supplement dated October 5, 2000
to the Prospectus Dated October 2, 2000
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE PROSPECTUS AND SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS.
Effective October 16, 2000, Shareholder Servicing Fees for the Government Money
Market Fund -- A Shares, Money Market Fund -- A and B Shares, Treasury Money
Market Fund -- A Shares and Treasury Plus Money Market Fund -- A Shares will
increase from 0.15% to 0.25% of the net asset value of the respective Shares of
the Funds. The Prospectus is amended as follows to reflect these changes:
- Delete the columns titled Government Money Market Fund -- Class A, Money
Market Fund -- Class A and Money Market Fund -- Class B of the "ANNUAL FUND
OPERATING EXPENSES" table on page 16 and replace them with the following
information:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
GOVERNMENT
MONEY MARKET MONEY MARKET MONEY MARKET
SHAREHOLDER FEES FUND FUND FUND
(PAID DIRECTLY FROM YOUR INVESTMENT) CLASS A CLASS A CLASS B(7)
--------------------------------------------------------------------------------
<S> <C> <C> <C>
Maximum Sales Charge (Load)
Imposed on Purchases (as percentage
of offering price) None None None
--------------------------------------------------------------------------------
Maximum Deferred Sales Charge (Load)
(as percentage of net asset value) None None 5.00%(1)
--------------------------------------------------------------------------------
Maximum Sales Charge (Load)
Imposed on Reinvested Dividends and
other distributions (as a percentage
of offering price) None None None
--------------------------------------------------------------------------------
Redemption Fee (as a percentage of
amount redeemed, if applicable) None None None
--------------------------------------------------------------------------------
Exchange Fee None None None
--------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES(3)
(EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS)
--------------------------------------------------------------------------------
Investment Advisory Fees 0.35% 0.35% 0.35%
--------------------------------------------------------------------------------
Distribution and Service (12b-1)
Fees 0.10% 0.10% 1.00%
--------------------------------------------------------------------------------
Other Expenses 0.35% 0.36% 0.11%
--------------------------------------------------------------------------------
Total Annual Fund Operating Expenses 0.80%(4) 0.81%(5) 1.46%(5)
--------------------------------------------------------------------------------
</TABLE>
1
<PAGE> 5
- Delete the columns titled Treasury Money Market Fund -- Class A and Treasury
Plus Money Market Fund -- Class A of the "ANNUAL FUND OPERATING EXPENSES"
table on page 18 and replace them with the following information:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
TREASURY MONEY TREASURY PLUS MONEY
SHAREHOLDER FEES MARKET FUND MARKET FUND
(PAID DIRECTLY FROM YOUR INVESTMENT) CLASS A CLASS A
---------------------------------------------------------------------------
<S> <C> <C>
Maximum Sales Charge (Load) Imposed
on Purchases (as percentage of
offering price) None None
---------------------------------------------------------------------------
Maximum Deferred Sales Charge (Load)
(as percentage of net asset value) None None
---------------------------------------------------------------------------
Maximum Sales Charge (Load) Imposed
on Reinvested Dividends and other
distributions (as a percentage of
offering price) None None
---------------------------------------------------------------------------
Redemption Fee (as a percentage of
amount redeemed, if applicable) None None
---------------------------------------------------------------------------
Exchange Fee None None
---------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES(3)
(EXPENSES THAT ARE DEDUCTED FROM
FUND ASSETS)
---------------------------------------------------------------------------
Investment Advisory Fees 0.30% 0.30%
---------------------------------------------------------------------------
Distribution and Service (12b-1)
Fees 0.10% 0.10%
---------------------------------------------------------------------------
Other Expenses 0.38% 0.41%
---------------------------------------------------------------------------
Total Annual Fund Operating Expenses 0.78%(4) 0.81%(6)
---------------------------------------------------------------------------
</TABLE>
- Delete footnotes 3, 4, 5 and 6 on page 19 referring to the tables entitled
"ANNUAL FUND OPERATING EXPENSES," on pages 16, 17 and 18, in the section
entitled "FUND FEES AND EXPENSES" and replace them with the following
information:
(3) The Trust has implemented plans imposing shareholder
servicing fees with respect to Class A Shares, Class B
Shares and Class C Shares of each fund, as applicable.
Pursuant to such plans, the Trust enters into shareholder
servicing agreements with certain financial institutions
under which they agree to provide shareholder
administrative services to their customers who
beneficially own Class A, Class B and Class C Shares in
consideration for the payment of up to 0.15% (on an
annualized basis) of the net asset value of Class A Shares
of the Ohio Municipal Money Market Fund, Pennsylvania Tax
Exempt Money Market Fund and Tax Exempt Money Market Fund;
up to 0.25% of the net asset value of Class A Shares of
the Government Money Market Fund, Money Market Fund,
Treasury Money Market Fund and Treasury Plus Money Market
Fund; and up to 0.25% of the net asset value of Class B
Shares and Class C Shares of the Money Market Fund.
Shareholder servicing fees paid by Class A Shares are
included in "Other Expenses" and fees paid by Class B and
Class C Shares are
2
<PAGE> 6
included in "Distribution and Service (12b-1) Fees" in the table above.
For further information concerning these plans, see "Shareholder
Services Plans" in the Statement of Additional Information."
(4) Each of these Funds' total actual annual operating
expenses for Class A Shares for the most recent fiscal
year were less than the amounts shown above because the
Adviser and Distributor each waived a portion of the fees
in order to keep total operating expenses for Class A
Shares at a specified level. With these fee waivers, each
Fund's actual total operating expenses for Class A Shares
were:
<TABLE>
<S> <C>
Government Money Market Fund 0.54%
Ohio Municipal Money Market Fund 0.50%
Pennsylvania Tax Exempt Money Market Fund 0.48%
Tax Exempt Money Market Fund 0.47%
Treasury Money Market Fund 0.57%
</TABLE>
The Adviser and Distributor each expects to continue these
waivers so that total operating expenses for Class A Shares
for the current fiscal year will be as follows. These fee
waivers remain in place as of the date of this prospectus,
but the Adviser and/or Distributor may discontinue all or
part of these waivers at any time.
<TABLE>
<S> <C>
Government Money Market Fund 0.70%
Ohio Municipal Money Market Fund 0.51%
Pennsylvania Tax Exempt Money Market Fund 0.49%
Tax Exempt Money Market Fund 0.48%
Treasury Money Market Fund 0.73%
</TABLE>
(5) The Money Market Fund's total actual annual operating
expenses for Class A and Class B Shares for the most
recent fiscal year were less than the amounts shown above
because the Adviser and Distributor each waived a portion
of the fees in order to keep total operating expenses at a
specified level. With these fee waivers, the Fund's actual
total operating expenses were, for Class A and Class B
Shares, 0.55% and 1.26%, respectively. The Adviser and
Distributor each expects to continue these waivers so that
total operating expenses for Class A, Class B and Class C
Shares for the current fiscal year will be 0.56%, 1.26%
and 1.36% (estimated), respectively. These fee waivers
remain in place as of the date of this prospectus, but the
Adviser and/or Distributor may discontinue all or part of
these waivers at any time.
(6) The Distributor expects to waive fees for the Treasury
Plus Money Market Fund so that total operating expenses
for Class A shares for the current fiscal year will be
0.81%. These fee waivers remain in place as of the date of
this prospectus, but the Distributor may discontinue all
or part of these waivers at any time.
3
<PAGE> 7
- Delete the Examples table on page 20 and replace it with the following
information:
<TABLE>
<CAPTION>
---------------------------------------------------------------------------
1 YEAR 3 YEARS 5 YEARS 10 YEARS
---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GOVERNMENT MONEY MARKET FUND
Class A Shares $ 82 $255 $444 $ 990
---------------------------------------------------------------------------
MONEY MARKET FUND
Class A Shares $ 83 $259 $450 $1,002
Class B Shares(1) $649 $862 $997 $1,568
Class B Shares(2) $149 $462 $797 $1,558
Class C Shares(1) $249 $462 $797 $1,746
Class C Shares(2) $149 $462 $797 $1,746
---------------------------------------------------------------------------
OHIO MUNICIPAL MONEY MARKET FUND
Class A Shares $ 78 $243 $422 $ 942
---------------------------------------------------------------------------
PENNSYLVANIA TAX EXEMPT MONEY
MARKET FUND
Class A Shares $ 81 $252 $439 $ 978
---------------------------------------------------------------------------
TAX EXEMPT MONEY MARKET FUND
Class A Shares $ 75 $233 $406 $ 906
---------------------------------------------------------------------------
TREASURY MONEY MARKET FUND
Class A Shares $ 80 $249 $433 $ 966
---------------------------------------------------------------------------
TREASURY PLUS MONEY MARKET FUND
Class A Shares $ 83 $259 $450 $1,002
---------------------------------------------------------------------------
</TABLE>
(1) If you sell your shares at the end of the period.
(2) If you do not sell your shares at the end of the period.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
ARM-SU-001-0100
4
