<PAGE> 1
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 MARCH 7, 1997
TO PROSPECTUS DATED JUNE 1, 1996
Capitalized terms shall have the same
meanings as in the Prospectus
BALANCED FUND
The discussion under the heading "INVESTMENT OBJECTIVES AND POLICIES
- - Balanced Fund - Investment Policies" is supplemented by deleting the seventh
sentence in the second paragraph thereof and by revising the third full
paragraph thereof to read as follows:
The Balanced Fund will, under normal market conditions, invest a
minimum of 25% of its total assets in fixed income securities,
obligations issued by the U.S. Government and its agencies and
instrumentalities, zero coupon receipts involving U.S. Treasury
obligations and corporate bonds and debentures, asset-backed
securities, floating or variable rate corporate notes and Yankee
Bonds. The Portfolio may also invest in mortgage-backed securities
(including collateralized mortgage obligations), which are securities
issued by government sponsored entities, such as the Government
National Mortgage Association, or by private issuers that entitle the
holder to a share of all interest and principal payments from a pool
of mortgage loans underlying the security. 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 fixed income securities held by
the Balanced Fund will have an aggregate average weighted maturity of
three to ten years.
All of the fixed income securities and any convertible securities
purchased by the Balanced Fund 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 not more than 20% of the assets of the Balanced Fund
that are invested in fixed income securities and convertible
securities may be invested in bonds or other securities 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 or
other securities purchased by the Balanced Fund declines below the
applicable criteria, the Adviser may consider selling such securities.
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
<PAGE> 2
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:
(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 in the paragraph under the heading "RISK FACTORS" is
supplemented as follows:
RATED SECURITIES - The Balanced Fund, the Intermediate Term Bond
Fund, the 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 the Balanced Fund that are
invested in fixed income securities and convertible securities, and
up to 20% of the assets of the Intermediate Term Bond Fund, the Short
Term Municipal Bond Fund and Idaho Municipal Bond Fund, 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-003-02
ACH-A-009-02
