CRESTFUNDS, INC.
Trust Class
Supplement dated August 14, 1998 to the
Prospectus dated March 31, 1998
On July 20, 1998, the Board of Directors of CrestFunds, Inc.
(the "Company") adopted a shareholder service plan (the "Plan")
for Trust Class shares (the "Shares") of the following Portfolios
of the Fund: Limited Term Bond Fund; Intermediate Bond Fund;
Government Bond Fund; Maryland Municipal Bond Fund; Virginia
Intermediate Municipal Bond Fund; Virginia Municipal Bond Fund
(the "Bond Funds"); Value Fund; Capital Appreciation Fund; and
Special Equity Fund (the "Equity Funds" and, together with the
Bond Funds, the "Portfolios").
Under the Plan, firms that provide shareholder and
administrative services may receive compensation therefor. Under
the Plan, SEI Investments Distribution Co. (the "Distributor")
may provide those services itself or may enter into arrangements
under which third parties provide such services and are
compensated by the Distributor. The Distributor currently
intends to enter into an arrangement with Crestar Bank, a
Virginia banking corporation and an affiliate of the Company's
investment adviser, whereby Crestar Bank would provide such
services.
Under the Plan, a Portfolio may pay the Distributor a
negotiated fee at a rate of up to .25% annually of the average
daily net assets of such Portfolio attributable to the Shares
that are subject to the arrangement in return for provision of a
broad range of shareholder and administrative services,
including: maintaining client sub-accounts; providing
information on share positions to clients; arranging for bank
wires; responding to client inquiries concerning services
provided for investments; forwarding shareholder communications
to clients; processing purchase, exchange and redemption orders;
changing dividend options, account designations and addresses;
providing sub-accounting; and processing dividend payments. The
Plan will become effective on September 30, 1998.
Administration fees are being paid to SEI Fund Resources at
an annualized rate of .04% for the Government Bond Fund and .06%
for the Virginia Municipal Bond Fund. Total Operating Expenses
as a percentage of average daily net assets for each of these
Funds are not expected to increase as a result of this payment of
administration fees.
The following replaces the "Summary of Fund Expenses"
section on page 3 of the Trust Class Prospectus:
"Summary of Fund Expenses"
The expense summary format below was developed for use by
all mutual funds to help investors make their investment
decisions. The purpose of the tables is to assist investors in
understanding the various costs and expenses that an investor in
Trust Class shares would bear directly or indirectly. Investors
should consider this expense information for the Funds along with
other important information in this Prospectus, including each
Fund's investment objective, financial highlights and, where
available, past performance. As is more fully described under
the heading "How to Purchase, Exchange and Redeem Shares," Trust
Class shares of the Funds are currently available, without
payment of any sales charge, to qualified individual or
institutional customers whose assets are managed and/or
administered by the Crestar Investment Group. Trust Class shares
of the money market funds are also offered to qualified
individuals or institutional customers who have qualified cash
management (or "sweep") accounts with Crestar Bank or one of its
bank affiliates. Such relationships may involve the payment of
account or service fees not reflected in the tables below.
Annual Fund Operating Expenses (as a percentage of average daily
net assets) - Net of Waivers and/or Reimbursement:
Total
Advisory 12b-1 Other Operating
Fund Fee+ Fees+ Expenses+ Expenses+
Cash Reserve Fund....... .38% 0% .27% .65%
U.S. Treasury Money
Fund.................. .40 0 .25 .65
Tax Free Money Fund..... .40 0 .26 .66
Limited Term Bond Fund.. .50 0 .30 .80
Intermediate Bond Fund.. .60 0 .32 .92
Government Bond Fund.... .50 0 .21 .71
Maryland Municipal Bond
Fund.................. .22 0 .46 .68
Virginia Intermediate
Municipal Bond Fund... .50 0 .33 .83
Virginia Municipal
Bond Fund............. .50 0 .24 .74
Value Fund.............. .75 0 .37 1.12
Capital Appreciation
Fund.................. .75 0 .37 1.12
Special Equity Fund..... .75 0 .36 1.11
+ Net of waivers and reimbursement.
Example: You would pay the following expenses on a $1,000
investment in a Fund, assuming (1) 5% annual return and (2)
redemption at the end of each time period:
Fund 1 Year 3 Years 5 Years 10 Years
Cash Reserve Fund......... $7 $21 $36 $81
U.S. Treasury Money Fund.. 7 21 36 81
Tax Free Money Fund....... 7 21 37 82
Limited Term Bond Fund.... 8 26 44 99
Intermediate Bond Fund.... 9 29 51 113
Government Bond Fund...... 7 23 40 88
Maryland Municipal Bond
Fund.................... 7 22 38 85
Virginia Intermediate
Municipal Bond Fund..... 8 26 46 103
Virginia Municipal Bond
Fund.................... 8 24 41 92
Value Fund................ 11 36 62 136
Capital Appreciation
Fund.................... 11 36 62 136
Special Equity Fund....... 11 35 61 135
Explanation of Table:
Annual Fund Operating Expenses. Advisory fees are paid by the
Funds to Crestar Asset Management Company (the "Adviser") for
managing the Funds' investments and business affairs (see
"Advisory and Related Agreements - Adviser"). The Funds pay
administration fees at an annualized rate of .15% to SEI Fund
Resources (the "Administrator") for administrative services.
Effective September 30, 1998 the Funds will pay a shareholder
service plan fee at an annualized rate of up to .25% to SEI
Investments Distribution Co. (the "Distributor") for the
following funds: Limited Term Bond Fund; Intermediate Bond Fund;
Government Bond Fund; Maryland Municipal Bond Fund; Virginia
Intermediate Municipal Bond Fund; Virginia Municipal Bond Fund;
Value Fund; Capital Appreciation Fund; and Special Equity Fund.
Absent fee waivers, advisory fees for the Government Bond Fund,
Maryland Municipal Bond Fund and Virginia Municipal Bond Fund
would be .60% for each Fund. Absent fee waivers, 12b-1 Fees
would be .15% for each Fund. Absent the partial waiver of
administration fees, Other Expenses would be .30% for the
Government Bond Fund and .35% for the Virginia Municipal Bond
Fund. Absent the waiver of shareholder servicing plan fees,
Other Expenses would be .50%, .52%, .41%, .66%, .53%, .44%, .52%,
.52%, and .51% for the Limited Term Bond Fund, Intermediate Bond
Fund, Government Bond Fund, Maryland Municipal Bond Fund,
Virginia Intermediate Municipal Bond Fund, Virginia Municipal
Bond Fund, Value Fund, Capital Appreciation Fund and Special
Equity Fund, respectively. Absent all fee waivers, Total
Operating Expenses would be .80% for the Cash Reserve Fund, .80%
for the U.S. Treasury Money Fund and .81% for the Tax Free Money
Fund, and 1.15%, 1.27%, 1.31%, 1.41%, 1.18%, 1.34%, 1.42%, 1.42%,
and 1.41% for the Limited Term Bond Fund, Intermediate Bond Fund,
Government Bond Fund, Maryland Municipal Bond Fund, Virginia
Intermediate Municipal Bond Fund, Virginia Municipal Bond Fund,
Value Fund, Capital Appreciation Fund and Special Equity Fund,
respectively. Please refer to the sections "Advisory and Related
Agreements - Administrator and Distributor," "Advisory and
Related Agreements - Transfer Agent and Custodian" and "Other
Expense Information." The information contained in the table and
example above relates only to Trust Class shares; expenses for
Trust Class shares differ from those of A Shares and B Shares.
See "Description of Common Stock." Advisory fees and Other
Expenses are reflected in each Fund's share price and are not
charged directly to individual shareholder accounts.
Example. The hypothetical example illustrates the expenses
associated with a $1,000 investment in Trust Class shares over
periods of 1, 3, 5 and 10 years based on the expenses in the
table above and an assumed annual return of 5%. The return of 5%
and expenses should not be considered indications of actual or
expected performance or expenses, both of which may vary."
At the section "INVESTMENT POLICIES - VALUE FUND AND CAPITAL
APPRECIATION FUND" on page 18 of the Prospectus, replace the
first sentence with the following:
Value Fund and Capital Appreciation Fund each will invest
primarily in domestic and foreign common stock and in securities
convertible into common stock, such as convertible bonds and
convertible preferred stock.
At the section "PRICING OF SHARES" on page 21 of the Prospectus,
replace the second sentence of the third paragraph with:
Securities traded only on over-the-counter markets are
valued on the basis of last sale price.
At the end of the section "THE ADVISOR" on page 27 of the
Prospectus, add the following:
On July 20, 1998, it was announced that Crestar Financial
Corporation ("Crestar"), the parent of Crestar Bank which is the
parent of Crestar Asset Management Corporation ("CAMCO"), the
Funds' investment advisor, and SunTrust Banks, Inc. ("SunTrust"),
have signed a definitive agreement for the acquisition of Crestar
by SunTrust. Subject to certain conditions being met, it is
currently anticipated that Crestar will become a wholly-owned
subsidiary of SunTrust in the fourth quarter of 1998.
RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
CRESTFUNDS, INC.
Investors Class
Supplement dated August 14, 1998 to the
Prospectus dated March 31, 1998
At the section "SUMMARY OF FUND EXPENSES" on page 3 of the
Prospectus, add the following:
Administration fees are being paid to SEI Fund Resources at
an annualized rate of .04% for the Government Bond Fund and .06%
for the Virginia Municipal Bond Fund. Total Operating Expenses
as a percentage of average daily net assets for each of these
Funds are not expected to increase as a result of this payment of
administration fees.
At the section "INVESTMENT POLICIES - VALUE FUND AND CAPITAL
APPRECIATION FUND" on page 21 of the Prospectus, replace the
first sentence with the following:
Value Fund and Capital Appreciation Fund each will invest
primarily in domestic and foreign common stock and in securities
convertible into common stock, such as convertible bonds and
convertible preferred stock.
At the section "PRICING OF SHARES" on page 24 of the Prospectus,
replace the second sentence of the third paragraph with the
following:
Securities traded only on over-the-counter markets are
valued on the basis of last sale price.
At the end of the section "THE ADVISER" on page 35 of the
Prospectus, add the following:
On July 20, 1998 it was announced that Crestar Financial
Corporation ("Crestar"), the parent of Crestar Bank which is the
parent of Crestar Asset Management Corporation ("CAMCO"), the
Funds' investment adviser, and SunTrust Banks, Inc. ("SunTrust"),
have signed a definitive agreement for the acquisition of Crestar
by SunTrust. Subject to certain conditions being met, it is
currently anticipated that Crestar will become a wholly-owned
subsidiary of SunTrust in the fourth quarter of 1998.
RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
