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THE ACHIEVEMENT FUNDS TRUST
EQUITY FUND
BALANCED FUND
INTERMEDIATE TERM BOND FUND
SHORT TERM BOND FUND
SHORT TERM MUNICIPAL BOND FUND
IDAHO MUNICIPAL BOND FUND
SUPPLEMENT DATED SEPTEMBER 27, 1996
TO PROSPECTUS DATED JUNE 1, 1996
Capitalized terms shall have the same
meanings as in the Prospectus
INTERMEDIATE TERM BOND FUND
The discussion in the first full paragraph under the heading
"INVESTMENT OBJECTIVES AND POLICIES - Intermediate Term Bond Fund - Investment
Policies" is supplemented by deleting the third, fourth and fifth sentences
thereof and inserting the following:
All of the foregoing investment securities are considered by
the Trust to be bonds and will be rated BBB or higher by S&P
or Baa by Moody's at the time of purchase, or will be
determined to be of comparable quality by the Adviser at the
time of purchase, provided, however, that the Intermediate
Term Bond Fund may not invest more than 20% of its assets in
bonds that are rated BBB by S&P or Baa by Moody's or are
determined to be of comparable quality by the Adviser. In the
event the credit quality of bonds purchased by the
Intermediate Term Bond Fund declines below the applicable
criteria, the Adviser may consider selling such securities.
The Portfolio's investment in mortgage-backed securities,
asset-backed securities, floating or variable rate corporate
notes and Yankee Bonds will not exceed 40% of its total
assets.
The discussion in the third full paragraph under the heading
"INVESTMENT OBJECTIVES AND POLICIES - Intermediate Term Bond Fund - Investment
Policies" is supplemented by deleting the first sentence thereof and inserting
the following:
The Portfolio will have an aggregate average weighted maturity
of three to ten years.
SHORT TERM MUNICIPAL BOND FUND
Clause (i) of the first sentence of the second paragraph under
the heading "INVESTMENT OBJECTIVES AND POLICIES - Short Term Municipal Bond Fund
- - Investment Policies" of the Prospectus is supplemented as follows:
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(i) municipal bonds rated BBB or higher by S&P or Baa or
higher by Moody's, provided, however, that the Short Term
Municipal Bond Fund may not invest more than 20% of its assets
in bonds rated BBB by S&P or Baa by Moody's;
IDAHO MUNICIPAL BOND FUND
Clause (i) of the third sentence of the first paragraph under
the heading "INVESTMENT OBJECTIVES AND POLICIES - Idaho Municipal Bond Fund -
Investment Policies" of the Prospectus is
supplemented as follows:
(i) municipal bonds rated BBB or higher by S&P or Baa or
higher by Moody's, provided, however, that the Idaho Municipal
Bond Fund may not invest more than 20% of its assets in bonds
rated BBB by S&P or Baa by Moody's;
The last sentence of the second paragraph under the heading
"INVESTMENT OBJECTIVES AND POLICIES - Idaho Municipal Bond Fund - Investment
Policies" of the Prospectus is deleted in its entirety.
RISK FACTORS
The discussion appearing under the heading "RISK FACTORS" in
the Prospectus is supplemented as follows:
RATED SECURITIES - the Intermediate Term Bond Fund, Short Term
Municipal Bond Fund and Idaho Municipal Bond Fund may invest
in securities rated as investment grade by either S&P or
Moody's. Up to 20% of the assets of these Portfolios may be
invested in bonds in the lowest investment grade debt category
(i.e., bonds rated BBB by S&P or Baa by Moody's), which have
speculative characteristics. Changes in economic conditions or
other circumstances are more likely to lead to a weakened
capacity on the part of the issuer of such bonds to make
principal and interest payments than is the case with higher
grade bonds. The Portfolios may retain a security which was
rated as investment grade at the time of purchase but whose
rating is subsequently downgraded below investment grade.
GENERAL
The discussion under the headings "THE TRUST" and "GENERAL
INFORMATION - The Trust" is supplemented to indicate that the Trust's Municipal
Bond Fund will commence business operations on November 1, 1996.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
ACH-A-003-01
ACH-A-009-01
2
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THE ACHIEVEMENT FUNDS TRUST
Supplement Dated September 27, 1996 to
Statement of Additional Information
Dated June 1, 1996
The Statement of Additional Information of The Achievement
Funds Trust (the "Trust") is supplemented to indicate that the Trust's Municipal
Bond Fund will commence business operations on November 1, 1996.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
ACH-F-018-01
