<PAGE> 1
THE PARKSTONE GROUP OF FUNDS
Supplement dated July 2, 1999 to the
Statement of Additional Information dated September 18, 1998
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN
THE STATEMENT OF ADDITIONAL INFORMATION. IT SHOULD BE RETAINED AND READ IN
CONJUNCTION WITH SUCH STATEMENT OF ADDITIONAL INFORMATION.
After the last paragraph on page 25, the following sub-section, "Trustee
Deferred Compensation Plan", is inserted.
TRUSTEE DEFERRED COMPENSATION PLAN
The Trustees may elect to defer payment of 25% to 100% of the fees they receive
in accordance with a Trustee Deferred Compensation Plan (the "Plan"). Under the
Plan, a Trustee may elect to have his or her deferred fees invested by the Plan
administrator in 91-day U.S. Treasury Bills, initially, or upon implementation
of the "shares option", and treated as if they had been invested by the Group in
the shares of one or more portfolios of the Group or Armada Funds. The amount
paid to the Trustee under the Plan will be determined based on the performance
of such investments.
Distributions are generally of equal installments over a period of 2 to 15
years. The Plan will remain unfunded for federal income tax purposes under the
Internal Revenue Code of 1986, as amended (the "Code"). Deferral of Trustee fees
in accordance with the Plan will have a negligible impact on portfolio assets
and liabilities and will not obligate the Group to retain any Trustee or pay any
particular level of compensation to a Trustee. The Group may invest in
underlying securities without shareholder approval.
