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HIGHMARK MUTUAL FUND GROUP
The Growth Fund
The Income and Growth Fund
The Income Equity Fund
The Balanced Fund
The Bond Fund
The Government Bond Fund
The Diversified Obligations Fund
The U.S. Government Obligations Fund
The 100% U.S. Treasury Obligations Fund
The California Tax-Free Fund
The Tax-Free Fund
Supplement dated April 1, 1996 to
Prospectus dated December 1, 1995
The merger described in the section of the prospectus entitled "SERVICE
ARRANGEMENTS -- Investment Adviser" was consummated on April 1, 1996.
Shareholders of each Fund approved a new investment advisory agreement between
the Group and Union Bank of California, N.A. at a Special Meeting of
Shareholders held on March 11, 1996. As a result, the Investment Adviser is now
MERUS-UCA Capital Management, a division of Union Bank of California, N.A.
The Board of Trustees has approved a Multiple Class Plan, which has been
filed with the Securities and Exchange Commission. Effective immediately, the
Group will be operating under the Multiple Class Plan, which replaces its
current exemptive order. The description of the Group's classes of shares
contained in the prospectus under the headings "FUND DESCRIPTION" and "HOW TO
PURCHASE SHARES" remains unchanged.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE
