<PAGE> 1
THE PARKSTONE GROUP OF FUNDS
INSTITUTIONAL SHARES
<TABLE>
<S> <C>
GROWTH FUNDS INCOME FUNDS
Parkstone Small Capitalization Fund Parkstone Bond Fund
Parkstone Mid Capitalization Fund Parkstone Limited Maturity Bond Fund
Parkstone Large Capitalization Fund Parkstone Intermediate Government
Parkstone International Discovery Fund Obligations Fund
Parkstone U.S. Government Income Fund
GROWTH AND INCOME FUNDS MONEY MARKET FUNDS
Parkstone Conservative Allocation Fund Parkstone Prime Obligations Fund
Parkstone Balanced Allocation Fund Parkstone U.S. Government Obligations Fund
Parkstone Aggressive Allocation Fund Parkstone Treasury Fund
Parkstone Equity Income Fund Parkstone Tax-Free Fund
TAX-FREE INCOME FUNDS
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
</TABLE>
- -------------------------------------------------------------------------------
SUPPLEMENT DATED APRIL 29, 1997
TO PROSPECTUS DATED OCTOBER 8, 1996
AS SUPPLEMENTED OCTOBER 16, 1996, DECEMBER 20, 1996,
FEBRUARY 25, 1997 AND APRIL 24, 1997
1. Investors are advised that the Parkstone Moderate Foundation Fund,
formerly known as the Parkstone Balanced Fund, has been renamed the
Parkstone Balanced Allocation Fund. All references contained in the
Prospectus to this Fund are changed accordingly.
2. On page 9 of the Prospectus in the table under the heading "Annual Fund
Operating Expenses", the fees and expenses for the Large Capitalization
Fund are revised as follows:
<TABLE>
<CAPTION>
TOTAL
MANAGEMENT 12b-1 OTHER OPERATING
FEES FEES EXPENSES EXPENSES
---------- ----- -------- ---------
<S> <C> <C> <C> <C>
Large Capitalization Fund..................... 0.80% 0.00% 0.33% 1.13%
</TABLE>
3. Also on page 9 of the Prospectus, the discussion of the annual fund
operating expenses absent voluntary fee reductions for the Large
Capitalization Fund is revised as follows:
The annual percentage of Other Expenses for the Large Capitalization
Fund is based on expenses incurred since commencement of operations and
expected voluntary reductions. Absent the expected voluntary reduction of
administration fees, Other Expenses and Total Expenses would be 0.35% and
1.15%, respectively.
4. On page 10 of the Prospectus, in the tables under the heading "Expense
Examples," the expenses for the Large Capitalization Fund, rounded to the
nearest dollar on a $1,000 investment in Institutional Shares, assuming
(1) 5% annual return and (2) redemption at the end of each time period,
are revised as follows:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS
------ -------
<S> <C> <C>
Large Capitalization Fund.................................................. $12 $36
</TABLE>
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE
<PAGE> 2
5. The Prospectus for The Parkstone Treasury Fund is hereby amended to remove
the ability of the Fund to engage in the lending of portfolio securities.
Consequently, the first sentence of the section of the Prospectus entitled
"RISK FACTORS AND INVESTMENT TECHNIQUES - Lending Portfolio Securities"
(page 49 of the Prospectus) is amended as follows:
In order to generate additional income, each Fund except the Treasury
Fund may, from time to time, lend its portfolio securities to
broker-dealers, banks, or institutional borrowers of securities.
6. On page 51 of the Prospectus, the first two paragraphs under the heading
"MANAGEMENT OF THE FUNDS-Trustees" are revised 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. There are currently five Trustees, three of
whom are not "interested persons" of the Group within the meaning of
that term under the 1940 Act. The Trustees elect the officers of the
Group to supervise actively its day-to-day operations.
The Trustees of the Group are John B. Rapp* (Chairman), Robert M.
Beam, Lawrence D. Bryan, Adrian Charles Edwards and George R.
Landreth*. The addresses and principal occupations during the past
five years of the Trustees are set forth in the Statement of
Additional Information. The Trustees designated with an asterisk (*)
are considered to be "interested persons" of the Group as defined in
the 1940 Act.
7. On page 51 of the Prospectus, add the following sentence after the last
paragraph under the heading "MANAGEMENT OF THE FUNDS - Trustees":
Mr. Rapp, who is an employee of First of America Bank Corporation, a
bank holding company, received no compensation from the Group for
acting as a Trustee.
8. On page 55 of the Prospectus, the first paragraph under the heading
"Exchange Privilege" is revised as follows:
The exchange privilege enables shareholders of Institutional Shares to
acquire Institutional Shares that are offered by another Fund of the Group
with a different investment objective. Except in the case of holders of
Investor C Shares wishing to exchange their shares for Investor A Shares
of any of the Money Market Funds, holders of shares of one class may not
exchange their shares for shares of another class. For example, holders of
a Fund's Investor B Shares may not exchange their shares for Institutional
Shares, and holders of Institutional Shares may not exchange their shares
for Investor B Shares.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE
<PAGE> 3
THE PARKSTONE GROUP OF FUNDS
INVESTOR A SHARES
<TABLE>
<S> <C>
GROWTH FUNDS INCOME FUNDS
Parkstone Small Capitalization Fund Parkstone Bond Fund
Parkstone Mid Capitalization Fund Parkstone Limited Maturity Bond Fund
Parkstone Large Capitalization Fund Parkstone Intermediate Government
Parkstone International Discovery Fund Obligations Fund
Parkstone U.S. Government Income Fund
GROWTH AND INCOME FUNDS MONEY MARKET FUNDS
Parkstone Conservative Allocation Fund Parkstone Prime Obligations Fund
Parkstone Balanced Allocation Fund Parkstone U.S. Government Obligations Fund
Parkstone Aggressive Allocation Fund Parkstone Treasury Fund
Parkstone Equity Income Fund Parkstone Tax-Free Fund
TAX-FREE INCOME FUNDS
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
</TABLE>
- -------------------------------------------------------------------------------
SUPPLEMENT DATED APRIL 29, 1997
TO PROSPECTUS DATED OCTOBER 8, 1996
AS SUPPLEMENTED OCTOBER 16, 1996, DECEMBER 20, 1996,
FEBRUARY 25, 1997 AND APRIL 24, 1997
1. Investors are advised that the Parkstone Moderate Foundation Fund,
formerly known as the Parkstone Balanced Fund, has been renamed the
Parkstone Balanced Allocation Fund. All references contained in the
Prospectus to this Fund are changed accordingly.
2. On page 10 of the Prospectus, the discussion of the annual fund operating
expenses absent voluntary fee reductions for the Large Capitalization Fund
is revised as follows:
The annual percentage of Other Expenses for the Large Capitalization
Fund is based on expenses incurred since commencement of operations and
expected voluntary reductions. Absent the expected voluntary reduction of
administration fees, Other Expenses and Total Expenses would be 1.57% and
2.62%, respectively.
3. The Prospectus for The Parkstone Treasury Fund is hereby amended to remove
the ability of the Fund to engage in the lending of portfolio securities.
Consequently, the first sentence of the section of the Prospectus entitled
"RISK FACTORS AND INVESTMENT TECHNIQUES - Lending Portfolio Securities"
(page 51 of the Prospectus) is amended as follows:
In order to generate additional income, each Fund except the Treasury
Fund may, from time to time, lend its portfolio securities to
broker-dealers, banks, or institutional borrowers of securities.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE
<PAGE> 4
4. On page 53 of the Prospectus, the first two paragraphs under the heading
"MANAGEMENT OF THE FUNDS-Trustees" are revised 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. There are currently five Trustees, three of
whom are not "interested persons" of the Group within the meaning of
that term under the 1940 Act. The Trustees elect the officers of the
Group to supervise actively its day-to-day operations.
The Trustees of the Group are John B. Rapp* (Chairman), Robert M.
Beam, Lawrence D. Bryan, Adrian Charles Edwards and George R.
Landreth*. The addresses and principal occupations during the past
five years of the Trustees are set forth in the Statement of
Additional Information. The Trustees designated with an asterisk (*)
are considered to be "interested persons" of the Group as defined in
the 1940 Act.
5. On page 54 of the Prospectus, add the following sentence after the last
paragraph under the heading "MANAGEMENT OF THE FUNDS - Trustees":
Mr. Rapp, who is an employee of First of America Bank Corporation, a
bank holding company, received no compensation from the Group for
acting as a Trustee.
6. On page 64 of the Prospectus, the first paragraph under the heading
"Exchange Privilege" is revised as follows:
The exchange privilege enables shareholders of Investor A Shares to
acquire Investor A Shares that are offered by another Fund of the Group
with a different investment objective. Except in the case of holders of
Investor C Shares wishing to exchange their shares for Investor A Shares
of any of the Money Market Funds, holders of shares of one class may not
exchange their shares for shares of another class. For example, holders of
a Fund's Investor B Shares may not exchange their shares for Investor A
Shares, and holders of Investor A Shares may not exchange their shares for
Investor B Shares.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THE PROSPECTUS FOR FUTURE REFERENCE
<PAGE> 5
THE PARKSTONE GROUP OF FUNDS
<TABLE>
<S> <C>
GROWTH FUNDS INCOME FUNDS
Parkstone Small Capitalization Fund Parkstone Bond Fund
Parkstone Mid Capitalization Fund Parkstone Limited Maturity Bond Fund
Parkstone Large Capitalization Fund Parkstone Intermediate Government
Parkstone International Discovery Fund Obligations Fund
Parkstone U.S. Government Income Fund
GROWTH AND INCOME FUNDS MONEY MARKET FUNDS
Parkstone Conservative Allocation Fund Parkstone Prime Obligations Fund
Parkstone Balanced Allocation Fund Parkstone U.S. Government Obligations Fund
Parkstone Aggressive Allocation Fund Parkstone Treasury Fund
Parkstone Equity Income Fund Parkstone Tax-Free Fund
TAX-FREE INCOME FUNDS
Parkstone Municipal Bond Fund
Parkstone Michigan Municipal Bond Fund
</TABLE>
- -------------------------------------------------------------------------------
SUPPLEMENT DATED APRIL 29, 1997
TO STATEMENT OF ADDITIONAL INFORMATION DATED
DECEMBER 30, 1996, AS SUPPLEMENTED
FEBRUARY 25, 1997 AND APRIL 24, 1997
1. Under the heading "MANAGEMENT OF THE GROUP - Trustees and Officers," in
the table listing the Trustees of the Group, add the following
information:
<TABLE>
<CAPTION>
Name, Address Position(s) Held Principal Occupation
and Birth Date With The Group During Past 5 Years
- -------------- -------------- -------------------
<S> <C> <C>
John B. Rapp* Chairman of the Board From 1989 to present,
First of America Bank Corp. and Trustee Executive Vice President,
211 South Rose St. First of America Bank
Kalamazoo, Michigan 49007 Corporation
November 3, 1936
</TABLE>
2. Investors are advised that George R. Landreth no longer serves as Chairman
of the Board, but has assumed the position of President of the Group.
3. Under the heading "MANAGEMENT OF THE GROUP - Trustees and Officers," in
the table listing the officers of the Group, add the following
information:
<TABLE>
<CAPTION>
Position(s) Held Principal Occupation
Name, Address and Age With The Group During Past 5 Years
- --------------------- -------------- -------------------
<S> <C> <C>
Dana A. Gentile, 34 Vice President From December 1987 to
BISYS Fund Services present, employee of BISYS
3435 Stelzer Road
Columbus, Ohio 43219
</TABLE>
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE
STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE
<PAGE> 6
<TABLE>
<S> <C> <C>
Tom E. Line, 29 Treasurer From January 1997 to
BISYS Fund Services present, employee of BISYS;
3435 Stelzer Road from September 1989 to
Columbus, Ohio 43219 December 1996, employee
of KPMG Peat Marwick
</TABLE>
4. Investors are advised that Scott A. Englehart no longer serves as
President of the Group, but has assumed the position of Vice President,
George O. Martinez no longer serves as an officer of the Group and
Timothy A. Thiebout no longer serves as Treasurer of the Group.
5. On page 16 of the Statement of Additional Information, the first sentence
of the section entitled "Lending of Portfolio Securities" is amended as
follows:
In order to generate additional income, each of the Funds except the
Treasury Fund may, from time to time, lend its portfolio securities to
broker-dealers, banks, or institutional borrowers of securities.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE
STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE
