<PAGE> 1
THE PARKSTONE GROUP OF FUNDS
GROWTH FUNDS
Parkstone Small Capitalization Fund
Parkstone Mid Capitalization Fund
Parkstone Large Capitalization Fund
Parkstone International Discovery Fund
INCOME FUNDS
Parkstone Bond Fund
Parkstone Limited Maturity Bond Fund
Parkstone Intermediate Government Obligations Fund
Parkstone U.S. Government Income Fund
GROWTH AND INCOME FUND
Parkstone Balanced Allocation Fund
Parkstone Equity Income Fund
TAX-FREE INCOME FUNDS
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
MONEY MARKET FUNDS
Parkstone Prime Obligations Fund
Parkstone U.S. Government Obligations Fund
Parkstone Treasury Fund
Parkstone Tax-Free Fund
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Supplement dated December 19, 1997
to Prospectus dated September 30, 1997
INVESTOR A SHARES
On page 52 of the Prospectus, the first paragraph under the heading "MANAGEMENT
OF THE FUNDS - Trustees" is revised to read as follows:
Overall responsibility for management of the Group rests with its Board of
Trustees. The Group will be managed by the Trustees in accordance with the
laws of the Commonwealth of Massachusetts governing business trusts. The
Trustees elect the officers of the Group to supervise actively its
day-to-day operations. The names, addresses, birth dates and principal
occupations during the past five years of the Trustees are set forth in the
Statement of Additional Information.
On page 58 of the Prospectus, the second-to-last sentence of the first paragraph
is revised to read as follows:
Shareholders will pay the next calculated net asset value after the receipt
by the Distributor or an Authorized Broker (as defined below) of an order
to purchase Investor A Shares, plus any applicable sales charge as
described below (see "SALES CHARGES").
On page 58 of the Prospectus, replace the first sentence of the second paragraph
under the heading "Other Information Regarding Purchases" with the following two
sentences:
The Funds have authorized one or more brokers or their designees
("Authorized Brokers") to accept on their behalf purchase orders for
Investor A Shares of the Funds. Investor A Shares are purchased at the net
asset value per share (see "HOW SHARES ARE VALUED") next determined after
receipt by the Distributor or an Authorized Broker of an order to purchase
Investor A Shares plus any applicable sales charge as described below.
On page 59 of the Prospectus, the second full paragraph is revised to read as
follows:
An order to purchase Investor A Shares will be deemed to have been received
when an Authorized Broker accepts the order or when federal funds are made
available to the Group's Custodian for investment. Federal funds are monies
credited to a bank's account within a Federal Reserve Bank. Payment for an
order to purchase Investor A Shares not placed through an Authorized Broker
and transmitted by federal funds wire will be available the same day for
investment by the Group's Custodian, if received prior to the Valuation
Time (see "HOW SHARES ARE VALUED"). If payment for such orders is made by
check or other means, purchases are made
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THEIR PROSPECTUS FOR FUTURE REFERENCE Page 1
<PAGE> 2
at the price next determined upon receipt of the purchase instrument.
However, proceeds from redeemed shares purchased by check will not be sent
until the method of payment has cleared. Payments for orders placed through
an Authorized Broker are subject to the requirements of that Authorized
Broker. The Group strongly recommends that investors of substantial amounts
use federal funds to purchase shares of the Funds.
On page 64 of the Prospectus, replace the last sentence of the first
paragraph under the heading "HOW TO REDEEM YOUR INVESTOR A SHARES" with the
following sentence:
Redemptions may be requested by mail or by telephone or through a
broker-dealer who has entered into a dealer agreement with the
Distributor.
On page 64 of the Prospectus, replace the first three sentences of the second
paragraph under the heading "Other Information Regarding Redemption of Shares"
with the following four sentences:
The Funds have designated one or more Authorized Brokers to accept on their
behalf redemption orders for shares of the Funds. Redemption orders are
effected at the net asset value per share next determined after the
Investor A Shares are properly tendered for redemption as described above,
or after an Authorized Broker accepts the redemption order. The proceeds
paid upon redemption of such shares of a Fund may be more or less than the
amount invested. Payment to shareholders for such shares redeemed will be
made within seven days after receipt by the Transfer Agent or Authorized
Broker of the request for redemption.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THEIR PROSPECTUS FOR FUTURE REFERENCE Page 2
<PAGE> 3
THE PARKSTONE GROUP OF FUNDS
GROWTH FUNDS
Parkstone Small Capitalization Fund
Parkstone Mid Capitalization Fund
Parkstone Large Capitalization Fund
Parkstone International Discovery Fund
INCOME FUNDS
Parkstone Bond Fund
Parkstone Limited Maturity Bond Fund
Parkstone Intermediate Government Obligations Fund
Parkstone U.S. Government Income Fund
GROWTH AND INCOME FUND
Parkstone Balanced Allocation fund
Parkstone Equity Income Fund
TAX-FREE INCOME FUNDS
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
MONEY MARKET FUNDS
Parkstone Prime Obligations Fund
- -------------------------------------------------------------------------------
Supplement dated December 19, 1997
to Prospectus dated September 30, 1997
INVESTOR B SHARES
On page 47 of the Prospectus, the first paragraph under the heading "MANAGEMENT
OF THE FUNDS - Trustees" is revised to read as follows:
Overall responsibility for management of the Group rests with its Board of
Trustees. The Group will be managed by the Trustees in accordance with the
laws of the Commonwealth of Massachusetts governing business trusts. The
Trustees elect the officers of the Group to supervise actively its
day-to-day operations. The names, addresses, birth dates and principal
occupations during the past five years of the Trustees are set forth in the
Statement of Additional Information.
On page 52 of the Prospectus, the second-to-last sentence of the first paragraph
under the heading "HOW TO BUY INVESTOR B SHARES" is revised to read as follows:
Shareholders will pay the next calculated net asset value after the receipt
by the Distributor or an Authorized Broker (as defined below) of an order
to purchase Investor B Shares.
On page 53 of the Prospectus, replace the first sentence of the second paragraph
under the heading "Other Information Regarding Purchases" with the following two
sentences:
The Funds have authorized one or more brokers or their designees
("Authorized Brokers") to accept on their behalf purchase orders for
Investor B Shares of the Funds. Investor B Shares are purchased at the net
asset value per share (see "HOW SHARES ARE VALUED") next determined after
receipt by the Distributor or an Authorized Broker of an order to purchase
Investor B Shares.
On pages 53-54 of the Prospectus, the third paragraph under the heading "Other
Information Regarding Purchases" is revised to read as follows:
An order to purchase Investor B Shares will be deemed to have been received
when an Authorized Broker accepts the order or when federal funds are made
available to the Group's Custodian for investment. Federal funds are monies
credited to a bank's account within a Federal Reserve Bank. Payment for an
order to purchase Investor B Shares not placed through an Authorized Broker
which is transmitted by federal funds wire will be available the same day
for investment by the Group's Custodian, if received prior to the last
Valuation Time (see "HOW SHARES ARE
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THEIR PROSPECTUS FOR FUTURE REFERENCE Page 1
<PAGE> 4
VALUED"). If payment for such orders is made by check or other means,
purchases are made at the price next determined upon receipt of the
purchase instrument. However, proceeds from redeemed shares purchased by
check will not be sent until the method of payment has cleared. Payments
for orders placed through an Authorized Broker are subject to the
requirements of that Authorized Broker. The Group strongly recommends that
investors of substantial amounts use federal funds to purchase shares of
the Funds.
On page 59 of the Prospectus, replace the last sentence of the first
paragraph under the heading "HOW TO REDEEM YOUR INVESTOR B SHARES" with the
following sentence:
Redemptions may be requested by mail or by telephone, or through a
broker-dealer who has entered into a dealer agreement with the
Distributor.
On page 61 of the Prospectus, replace the first three sentences of the first
paragraph with the following four sentences.
The Funds have designated one or more Authorized Brokers to accept on their
behalf redemption orders for shares of the Funds. Redemption orders are
effected at the net asset value per share next determined after the
Investor B Shares are properly tendered for redemption as described above,
or after an Authorized Broker accepts the redemption order. The proceeds
paid upon redemption of such shares of a Fund may be more or less than the
amount invested. Payment to shareholders for such shares redeemed will be
made within seven days after receipt by the Transfer Agent or Authorized
Broker of the request for redemption.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THEIR PROSPECTUS FOR FUTURE REFERENCE Page 2
<PAGE> 5
THE PARKSTONE GROUP OF FUNDS
GROWTH FUNDS
Parkstone Small Capitalization Fund
Parkstone Mid Capitalization Fund
Parkstone Large Capitalization Fund
Parkstone International Discovery Fund
INCOME FUNDS
Parkstone Bond Fund
Parkstone Limited Maturity Bond Fund
Parkstone Intermediate Government Obligations Fund
Parkstone U.S. Government Income Fund
GROWTH AND INCOME FUND
Parkstone Balanced Allocation Fund
Parkstone Equity Income Fund
- -------------------------------------------------------------------------------
Supplement dated December 19, 1997
to Prospectus dated September 30, 1997
INVESTOR C SHARES
On page 37 of the Prospectus, the first paragraph under the heading "MANAGEMENT
OF THE FUNDS-Trustees" is revised to read as follows:
Overall responsibility for management of the Group rests with its Board of
Trustees. The Group will be managed by the Trustees in accordance with the
laws of the Commonwealth of Massachusetts governing business trusts. The
Trustees elect the officers of the Group to supervise actively its
day-to-day operations. The names, addresses, birth dates and principal
occupations during the past five years of the Trustees are set forth in the
Statement of Additional Information.
On page 42 of the Prospectus, the second-to-last sentence of the first paragraph
under the heading "HOW TO BUY INVESTOR C SHARES" is revised to read as follows:
Shareholders will pay the next calculated net asset value after the receipt
by the Distributor or an Authorized Broker (as defined below) of an order
to purchase Investor C Shares.
On page 43 of the Prospectus, replace the first sentence of the first full
paragraph with the following two sentences:
The Funds have authorized one or more brokers or their designees
("Authorized Brokers") to accept on their behalf purchase orders for
Investor C Shares of the Funds. Investor C Shares are purchased at the net
asset value per share (see "HOW SHARES ARE VALUED") next determined after
receipt by the Distributor or an Authorized Broker of an order to purchase
Investor C Shares plus any applicable sales charge as described below.
On page 43 of the Prospectus, the second full paragraph is revised to read as
follows:
An order to purchase Investor C Shares will be deemed to have been received
when an Authorized Broker accepts the order or when federal funds are made
available to the Group's Custodian for investment. Federal funds are monies
credited to a bank's account within a Federal Reserve Bank. Payment for an
order to purchase Investor C Shares not placed through an Authorized Broker
which is transmitted by federal funds wire will be available the same day
for investment by the Group's Custodian, if received prior to the Valuation
Time (see "HOW SHARES ARE VALUED"). If payment for such orders is made by
check or other means, purchases are made at the price next determined upon
receipt of the purchase instrument. However, proceeds from redeemed shares
purchased by check will not be sent until the method of payment has
cleared. Payments for orders placed through an Authorized Broker are
subject to the requirements of that
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THEIR PROSPECTUS FOR FUTURE REFERENCE Page 1
<PAGE> 6
Authorized Broker. The Group strongly recommends that investors of
substantial amounts use federal funds to purchase shares of the Funds.
On page 47 of the Prospectus, replace the last sentence of the first
paragraph under the heading "HOW TO REDEEM YOUR INVESTOR C SHARES" with the
following sentence:
Redemptions may be requested by mail or by telephone, or through a
broker-dealer who has entered into a dealer agreement with the
Distributor.
On page 48 of the Prospectus, replace the first three sentences of the second
paragraph under the heading "Other Information Regarding Redemption of Shares"
with the following four sentences:
The Funds have designated one or more Authorized Brokers to accept on their
behalf redemption orders for shares of the Funds. Redemption orders are
effected at the net asset value per share next determined after the
Investor C Shares are properly tendered for redemption as described above,
or after an Authorized Broker accepts the redemption order. The proceeds
paid upon redemption of such shares of a Fund may be more or less than the
amount invested. Payment to shareholders for such shares redeemed will be
made within seven days after receipt by the Transfer Agent or Authorized
Broker of the request for redemption.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THEIR PROSPECTUS FOR FUTURE REFERENCE Page 2
<PAGE> 7
THE PARKSTONE GROUP OF FUNDS
GROWTH FUNDS
Parkstone Small Capitalization Fund
Parkstone Mid Capitalization Fund
Parkstone Large Capitalization Fund
Parkstone International Discovery Fund
INCOME FUNDS
Parkstone Bond Fund
Parkstone Limited Maturity Bond Fund
Parkstone Intermediate Government Obligations Fund
Parkstone U.S. Government Income Fund
GROWTH AND INCOME FUND
Parkstone Balanced Allocation Fund
Parkstone Equity Income Fund
TAX-FREE INCOME FUNDS
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
MONEY MARKET FUNDS
Parkstone Prime Obligations Fund
Parkstone U.S. Government Obligations Fund
Parkstone Treasury Fund
Parkstone Tax-Free Fund
- -------------------------------------------------------------------------------
Supplement dated December 19, 1997
to Prospectus dated September 30, 1997
INSTITUTIONAL SHARES
On page 48 of the Prospectus, the first paragraph under the heading "MANAGEMENT
OF THE FUNDS - Trustees" is revised to read as follows:
Overall responsibility for management of the Group rests with its Board of
Trustees. The Group will be managed by the Trustees in accordance with the
laws of the Commonwealth of Massachusetts governing business trusts. The
Trustees elect the officers of the Group to supervise actively its
day-to-day operations. The names, addresses, birth dates and principal
occupations during the past five years of the Trustees are set forth in the
Statement of Additional Information.
On page 52 of the Prospectus, replace the first sentence of the second paragraph
with the following two sentences:
The Funds have authorized one or more brokers or their designees
("Authorized Brokers") to accept on their behalf purchase orders for
Institutional Shares of the Funds. Institutional Shares are purchased at
the net asset value per share (see "HOW SHARES ARE VALUED") next determined
after receipt by the Distributor or an Authorized Broker of an order to
purchase Institutional Shares.
On page 52 of the Prospectus, the third paragraph is revised to read as
follows:
An order to purchase Institutional Shares will be deemed to have been
received when an Authorized Broker accepts the order or when federal funds
are made available to the Group's Custodian for investment. Federal funds
are monies credited to a bank's account within a Federal Reserve Bank.
Payment for an order to purchase Institutional Shares not placed through an
Authorized Broker and transmitted by federal funds wire will be available
the same day for investment by the Group's Custodian, if received prior to
the last Valuation Time (see "HOW SHARES ARE VALUED"). If payment for such
orders is made by check or other means, purchases are made at the price
next determined upon receipt of the purchase instrument. However, proceeds
from redeemed shares purchased by check will not be sent until the method
of payment has cleared. Payments for orders placed through an Authorized
Broker are subject to the requirements of that Authorized Broker. The Group
strongly recommends that investors of substantial amounts use federal funds
to purchase shares of the Funds.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THEIR PROSPECTUS FOR FUTURE REFERENCE Page 1
<PAGE> 8
On page 53 of the Prospectus, replace the first three sentences of the first
full paragraph with the following four sentences:
The Funds have designated one or more Authorized Brokers to accept on their
behalf redemption orders for shares of the Funds. Redemption orders are
effected at the net asset value per share next determined after the
Institutional Shares are properly tendered for redemption as described
above, or after an Authorized Broker accepts the redemption order. The
proceeds paid upon redemption of such shares of a Fund may be more or less
than the amount invested. Payment to shareholders for such shares redeemed
will be made within seven days after receipt by the Transfer Agent or
Authorized Broker of the request for redemption.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THEIR PROSPECTUS FOR FUTURE REFERENCE Page 2
<PAGE> 9
THE PARKSTONE GROUP OF FUNDS
LIFEWORKS FUNDS
Parkstone Conservative Allocation Fund
Parkstone Balanced Allocation Fund
Parkstone Aggressive Allocation Fund
- -------------------------------------------------------------------------------
Supplement dated December 19, 1997
to Prospectus dated September 30, 1997
INSTITUTIONAL SHARES
On page 21 of the Prospectus, the first paragraph under the heading "MANAGEMENT
OF THE FUNDS - Trustees" is revised to read as follows:
Overall responsibility for management of the Group rests with its Board of
Trustees. The Group will be managed by the Trustees in accordance with the
laws of the Commonwealth of Massachusetts governing business trusts. The
Trustees elect the officers of the Group to supervise actively its
day-to-day operations. The names, addresses, birth dates and principal
occupations during the past five years of the Trustees are set forth in the
Statement of Additional Information.
On page 24 of the Prospectus, replace the first sentence of the third paragraph
under the heading "HOW TO BUY INSTITUTIONAL SHARES" with the following two
sentences:
The Funds have authorized one or more brokers or their designees
("Authorized Brokers") to accept on their behalf purchase orders for
Institutional Shares of the Funds. Institutional Shares are purchased at
the net asset value per share (see "HOW SHARES ARE VALUED") next determined
after receipt by the Distributor or an Authorized Broker of an order to
purchase Institutional Shares.
On page 24 of the Prospectus, the fourth paragraph under the heading 'HOW TO
BUY INSTITUTIONAL SHARES" is revised to read as follows:
An order to purchase Institutional Shares will be deemed to have been
received when an Authorized Broker accepts the order or when federal funds
are made available to the Group's Custodian for investment. Federal funds
are monies credited to a bank's account within a Federal Reserve Bank.
Payment for an order to purchase Institutional Shares not placed through an
Authorized Broker and transmitted by federal funds wire will be available
the same day for investment by the Group's Custodian, if received prior to
the Valuation Time (see "HOW SHARES ARE VALUED"). If payment for such
orders is made by check or other means, purchases are made at the price
next determined upon receipt of the purchase instrument. However, proceeds
from redeemed shares purchased by check will not be sent until the method
of payment has cleared. Payments for orders placed through an Authorized
Broker are subject to the requirements of that Authorized Broker. The Group
strongly recommends that investors of substantial amounts use federal funds
to purchase shares of the Funds.
On page 25 of the Prospectus, replace the first three sentences of the second
paragraph under the heading "Other Information Regarding Redemption of Shares"
with the following four sentences:
The Funds have designated one or more Authorized Brokers to accept on their
behalf redemption orders for shares of the Funds. Redemption orders are
effected at the net asset value per share next determined after the
Institutional Shares are properly tendered for redemption as described
above, or after an Authorized Broker accepts the redemption order. The
proceeds paid upon redemption of such shares of a Fund may be more or less
than the amount invested. Payment to shareholders for such shares redeemed
will be made within seven days after receipt by the Transfer Agent or
Authorized Broker of the request for redemption.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THEIR PROSPECTUS FOR FUTURE REFERENCE
