<PAGE> 1
July 17, 1996
Dear Common Sense II Shareholder:
Your Fund's management has determined that it would be appropriate to the Fund
and its shareholders to modify the manner in which the net asset value of the
shares you are to receive in connection with the reorganization of your Fund
will be calculated. THERE WILL BE NO CHANGE IN THE TOTAL AMOUNT YOU ARE TO
RECEIVE FOR YOUR FUND SHARES, ONLY THE NUMBER OF NEW SHARES YOU ARE TO RECEIVE.
For example, if the total value of your shares immediately prior to the
reorganization is $1,000, you will still receive shares in the new fund with a
total value of $1,000, but that $1,000 may be represented by more or fewer
shares. For your information, set forth below are revised pro forma net asset
values and outstanding shares numbers, which replace those included in the
capitalization table appearing in your Prospectus/Proxy Statement dated May 20,
1996.
<TABLE>
<CAPTION>
GROWTH AND
GROWTH INCOME GOVERNMENT
FUND FUND FUND
----------- ---------- ----------
<S> <C> <C> <C>
NET ASSET VALUE PER SHARE
Class 1 Shares $17.46 $16.95 $10.67
Class A Shares $17.46 $16.95 $10.67
Class B Shares $17.46 $16.95 $10.67
SHARES OUTSTANDING
Class 1 Shares 149,533,377 48,862,007 30,839,945
Class A Shares 1,207,736 796,553 921,849
Class B Shares 1,909,319 1,248,693 888,760
TOTAL 152,650,432 50,907,253 32,650,554
</TABLE>
The shareholder's meeting for your Fund scheduled for July 17, 1996, will be
adjourned until August 6, 1996, to allow shareholders additional time to vote
and to allow you an opportunity to consider the changes described above. If you
have voted and do not want to change your vote, you need do nothing more.
However, if you have not yet voted or would like to change your vote, we have
enclosed a new proxy card for your convenience. Please sign, date and return the
proxy card in the enclosed postage-paid envelope.
If you have any questions, please call PFS Shareholder Services at
1-800-544-5445. Our representatives are available Monday through Friday from
9:00 a.m. to 6:00 p.m., Eastern time, to assist you.
Sincerely,
/s/ DON G. POWELL
Don G. Powell
President
