<PAGE> 1
THE PARKSTONE GROUP OF FUNDS
Supplement Dated December 28, 1999 to
the Statement of Additional Information Dated September 17, 1999
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE STATEMENT OF ADDITIONAL INFORMATION AND SHOULD BE RETAINED AND READ IN
CONJUNCTION WITH THE STATEMENT OF ADDITIONAL INFORMATION.
- - EFFECTIVE JANUARY 1, 2000, SEI INVESTMENTS MUTUAL FUNDS SERVICES WILL ASSUME
THE ROLE AS THE GROUP'S ADMINISTRATOR. THE SECTION ENTITLED, "ADDITIONAL
INFORMATION ON PORTFOLIO INSTRUMENTS," PAGE 6, IS AMENDED BY DELETION OF THE
FIRST PARAGRAPH TO ADD THE FOLLOWING INFORMATION:
"Like any investment program, an investment in a Fund entails certain risks.
The Funds will not acquire portfolio securities issued by, make savings
deposits in, or enter into repurchase, reverse repurchase or dollar roll
agreements with the Investment Adviser, SEI Investments Mutual Funds Services,
SEI or their affiliates, and will not give preference to the correspondents of
their bank affiliates with respect to such transactions, securities, savings
deposits, repurchase agreements, reverse repurchase agreements and dollar roll
agreements."
- - THE SECTION ENTITLED, "MANAGEMENT OF THE GROUP," PAGE 34, IS AMENDED AS
FOLLOWS:
- The first sentence in the sixth paragraph is deleted and the following is
added:
"Each Trustee who is not an affiliated person of SEI Investments Mutual
Funds Services or National City Corporation, the ultimate parent of
National City Bank, receives an annual fee of $15,000 plus $3,000 for
each Board meeting attended and reimbursement of expenses incurred in
attending meetings for services as a Trustee to the Fund Complex."
- The seventh paragraph is deleted and the following is added:
The officers of the Group, their addresses, and principal occupations
during the past five years are as follows:
<TABLE>
<CAPTION>
POSITION(S) HELD PRINCIPAL OCCUPATION
NAME WITH THE GROUP DURING PAST 5 YEARS
---- ------------------- -----------------------------------
<S> <C> <C>
Herbert R. Martens, Jr. President Executive Vice President, National
c/o NatCity Investments City Corporation (bank holding
1965 East Sixth Street company), since July 1997;
Cleveland, OH 44114 Chairman, President and Chief
Executive Officer, NatCity
Investments, Inc. (investment
banking), since July 1995;
President and Chief Executive
Officer, Raffensperger, Hughes &
Co., (broker-dealer), from 1993
until 1995; President, Reserve
Capital Group, from 1990 until
1993; President, since July 1997
and Trustee, since November 1997 of
Armada Funds.
W. Bruce McConnel, III Secretary Partner, Drinker Biddle & Reath
One Logan Square LLP, Philadelphia (law firm).
18th and Cherry Streets
Philadelphia, PA 19103-6996
</TABLE>
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<TABLE>
<CAPTION>
POSITION(S) HELD PRINCIPAL OCCUPATION
NAME WITH THE GROUP DURING PAST 5 YEARS
---- ------------------- -----------------------------------
<S> <C> <C>
John Leven Treasurer Director of Funds Accounting of SEI
One Freedom Valley Drive Investments Mutual Funds Services
Oaks, PA 19456 since March 1999; Division
Controller, First Data Corp. from
February 1998 to March 1999;
Corporate Controller, FPS Services,
a mutual funds servicing company,
from February 1993 to February
1998; Treasurer, FPS Broker
Services, Inc. from March 1993 to
December 1998.
Edward T. Searle Assistant Treasurer Vice President and Assistant
One Freedom Valley Drive Secretary of SEI Investments Mutual
Oaks, PA 19456 Funds Services and SEI Investments
Distribution Co. since August 1999;
Associate, Drinker Biddle & Reath
LLP (law firm) from June 1998 to
August 1999; Associate, Ballard
Spahr Andrews & Ingersoll LLP (law
firm) from September 1995 to June
1998; Student, Temple University
School of Law, from 1992 to 1995.
</TABLE>
- The eighth paragraph is deleted and the following is added:
"The officers of the Group receive no compensation directly from the
Group for performing the duties of their offices. As Administrator, SEI
Investments Mutual Funds Services receives fees from the Group. As
Distributor, SEI may retain all or a portion of any sales charge on the
shares sold and may receive fees under the Distribution and Shareholder
Service Plans described below. Mr. Leven, Treasurer of the Group, and Mr.
Searle, the Assistant Treasurer of the Group, are employees of SEI
Investments Mutual Funds Services."
- - THE SECTION ENTITLED, "ADMINISTRATOR AND SUB-ADMINISTRATOR," PAGE 42, IS
AMENDED AS FOLLOWS:
- The first paragraph is deleted and the following is added:
"SEI Investments Mutual Funds Services (the "Administrator"), serves as
administrator to the Group pursuant to the Administration Agreement dated
January 1, 2000 (the "Administration Agreement"). The Administrator, a
Delaware business trust, has its principal business offices at One
Freedom Valley Drive, Oaks, Pennsylvania, 19456. SEI Investments
Management Corporation ("SIMC"), a wholly-owned subsidiary of SEI
Investments Company ("SEI Investments"), is the owner of all beneficial
interests in the Administrator. SEI Investments and its affiliates,
including the Administrator, are leading providers of funds evaluation
services, trust accounting systems, and brokerage and information
services to financial institutions, institutional investors, and money
managers. The Administrator and its affiliates also serve as
administrator or sub-administrator to the following other mutual funds:
The Achievement Funds Trust, The Advisors' Inner Circle Fund, Alpha
Select Funds, The Arbor Fund, ARK Funds, Armada Funds, Parkstone
Advantage Fund, Bishop Street Funds, Boston 1784 Funds(R), CNI Charter
Funds, CrestFunds, Inc., CUFUND, The Expedition Funds, First American
Funds, Inc., First American Investment Funds, Inc., First American
Strategy Funds, Inc., HighMark Funds, Huntington Funds, The Nevis Fund,
Oak Associates Funds, The PBHG Funds, Inc., PBHG Insurance Series Fund,
Inc., SEI Asset Allocation Trust, SEI Daily Income Trust, SEI Index
Funds, SEI Institutional Investments Trust, SEI Institutional Managed
Trust, SEI Institutional International Trust, SEI Liquid Asset Trust, SEI
Tax Exempt Trust, STI Classic Funds, STI Classic Variable Trust, TIP
Funds and UAM Funds, Inc. II. The Administrator assists in supervising
all operations of each Fund (other than those performed by the Investment
Adviser under the Investment Advisory Agreement, by National City Bank
and Union Bank of California (the "Custodi-
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ans") under the Custody Agreements and by BISYS Fund Services Ohio, Inc. ("BISYS
Ohio") under the Fund Accounting Agreement. The Administrator is a broker-dealer
registered with the SEC, and is a member of the National Association of
Securities Dealers, Inc."
- The second and third sentences in the third paragraph are deleted and the
following is added:
"National City Bank serves as Sub-Administrator to the Group pursuant to
a Sub-Administration Agreement dated January 1, 2000, and receives a fee
from the Administrator for its services. Under the Sub-Administration
Agreement, National City Bank will assist the Administrator by providing,
upon the request of the Administrator, services which are incidental to,
but not included among, IMC's duties as Investment Adviser to the Group."
- The fourth paragraph is deleted and the following is added:
"The Administrator receives a fee from each Fund for its services as
Administrator and expenses assumed pursuant to the Administration
Agreement, calculated and paid periodically, equal to the lesser of (a)
the fee calculated at the annual rate of 0.10% of that Fund's average
daily net assets, or (b) such other fee as may from time to time be
agreed upon in writing by the Group and the Administrator. As Sub-
Administrator, National City Bank is entitled to receive a fee from the
Administrator of not more than 0.02% of each Fund's average daily net
assets. The Administrator may voluntarily reduce all or a portion of its
fee with respect to any Fund in order to increase the net income of one
or more of the Funds available for distribution as dividends."
- The fifth paragraph is deleted and the following is added:
"For the fiscal year ended May 31, 1999, the fiscal period ended May 31,
1998 and the fiscal year ended June 30, 1997, BISYS Ohio, the former
administrator, collected and voluntarily reduced the amounts indicated
below which were payable to it with respect to its administrative
services to the indicated Funds:"
- The first sentence in the sixth paragraph is deleted and the following is
added:
"The Administration and Sub-Administration Agreements are expected to be
terminated upon the reorganization of the Group's Funds into the Armada
Funds."
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
PAR-B-010-01000 (12/99)
