<PAGE> 1
THE PNC(R) FUND
THE EQUITY PORTFOLIOS -- SERVICE CLASS
SUPPLEMENT TO PROSPECTUS DATED JANUARY 30, 1995
Effective December 1, 1995, the Expense Table and Example for the Equity
Portfolios of The PNC Fund that appear on page 3 are revised as follows:
ANNUAL FUND OPERATING EXPENSES FOR SERVICE SHARES AFTER FEE WAIVERS AS A
PERCENTAGE OF DAILY NET ASSETS
<TABLE>
<CAPTION>
SMALL SMALL INTER-
CAP CAP INTER- NATIONAL
VALUE GROWTH GROWTH CORE INDEX VALUE NATIONAL EMERGING
EQUITY EQUITY EQUITY EQUITY EQUITY EQUITY EQUITY MARKETS BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ---------- ---------- --------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Advisory
Fees(1)..... .50% .50% .53% .50% .01% .53% .70% 1.15% .50%
Other
operating
expenses.... .55 .55 .63 .55 .47 .63 .66 .93 .60
--- --- --- --- --- --- --- ---
Administration
fees(1)... .17 .15 .22 .15 .08 .22 .16 .18 .17
Service
Fees(1)... .15 .15 .15 .15 .15 .15 .15 .15 .15
Other
expenses... .23 .25 .26 .25 .24 .26 .35 .60 .28
-- -- -- -- -- -- -- -- --
Total fund
operating
expenses.... 1.05% 1.05% 1.16% 1.05% .48% 1.16% 1.36% 2.08% 1.10%
===== ===== ===== ===== ===== ===== ===== ===== =====
</TABLE>
- ---------------
(1) Advisory fees are net of waivers of .05%, .05%, .02%, .05%, .19%, .02%,
.05%, .10% and .05% and administration fees are net of waivers of .06%,
.08%, .01%, .08%, .15%, .01%, .07%, .05% and .06% for the Value Equity,
Growth Equity, Small Cap Growth Equity, Core Equity, Index Equity, Small Cap
Value Equity, International Equity, International Emerging Markets and
Balanced Portfolios, respectively. PIMC and the Administrators are under no
obligation to waive or continue waiving such fees, but have informed the
Fund that they expect to waive or continue waiving such fees as necessary to
maintain the Portfolios' total operating expenses during the current fiscal
year at the levels set forth in the table. The expenses noted above under
"Other expenses" are estimated based on the level of such expenses for the
Fund's most recent fiscal year.
EXAMPLE
An investor in Service Shares would pay the following expenses on a $1,000
investment in Shares of each of the Portfolios, assuming (1) 5% annual return,
and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
-------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
Value Equity................................................ $ 11 $33 $ 58 $ 128
Growth Equity............................................... 11 33 58 128
Small Cap Growth Equity..................................... 12 37 64 141
Core Equity................................................. 11 33 58 128
Index Equity................................................ 5 15 27 60
Small Cap Value Equity...................................... 12 37 64 141
International Equity........................................ 14 43 74 164
International Emerging Markets.............................. 21 65 N/A N/A
Balanced.................................................... 11 35 61 134
</TABLE>
The foregoing Expense Table and Example are intended to assist investors in
understanding the Portfolios' estimated operating expenses. Investors bear these
expenses either directly or indirectly. The information in the table for the
Value Equity, Growth Equity, Small Cap Growth Equity, Core Equity, Index Equity,
Small Cap Value Equity, International Equity and Balanced Portfolios is based on
the advisory fees, administration fees and other expenses payable after fee
waivers with respect to the particular Portfolios for the fiscal year ended
September 30, 1994, as restated to reflect revised fee waivers and
co-administration fees payable to Compass Capital Group, Inc. ("CCG"). The table
also estimates fees, expenses, waivers and assets for the International Emerging
Markets Portfolio for the current fiscal year. Total operating expenses would
have been 1.16%, 1.18%, 1.19%, 1.18%, .82%, 1.19%, 1.48%, 2.23% and 1.21% for
Service Shares in the Value Equity, Growth Equity, Small Cap Growth Equity, Core
Equity, Index Equity, Small Cap Value Equity, International Equity,
International Emerging Markets and Balanced Portfolios, respectively, without
such fee waivers. See Footnote 1 to the Expense Table, "Financial
Highlights -- Background," "Management," "Distribution of Shares," "How to
Purchase Shares" and "Description of Shares" for a further description of
shareholder transaction expenses and operating expenses.
THE EXAMPLE SHOWN ABOVE SHOULD NOT BE CONSIDERED A REPRESENTATION OF FUTURE
INVESTMENT RETURN OR OPERATING EXPENSES. ACTUAL INVESTMENT RETURN AND OPERATING
EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN.
PNCS-N-003N
<PAGE> 2
CO-ADMINISTRATOR
Effective December 1, 1995, CCG, whose principal business address is 345
Park Avenue, New York, New York 10154, together with PFPC Inc. and Provident
Distributors, Inc., serves as co-administrator to the Fund. CCG is a
wholly-owned, indirect subsidiary of PNC Bank Corp. CCG generally provides
ongoing business management and support services in connection with the Fund's
operations. As compensation for its services, CCG is entitled to receive a fee,
computed daily and payable monthly, at an annual rate of .03% of each
Portfolio's average daily net assets.
The date of this Supplement is December 1, 1995.
<PAGE> 3
THE PNC(R) FUND
THE EQUITY PORTFOLIOS -- INSTITUTIONAL CLASS
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995
Effective December 1, 1995, the Expense Table and Example for the Equity
Portfolios of The PNC Fund that appear on page 3 are revised as follows:
ANNUAL FUND OPERATING EXPENSES FOR INSTITUTIONAL SHARES AFTER FEE WAIVERS AS A
PERCENTAGE OF DAILY NET ASSETS
<TABLE>
<CAPTION>
SMALL SMALL INTER-
CAP CAP INTER- NATIONAL
VALUE GROWTH GROWTH CORE INDEX VALUE NATIONAL EMERGING
EQUITY EQUITY EQUITY EQUITY EQUITY EQUITY EQUITY MARKETS BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- --------- --------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Advisory Fees(1).... .50% .50% .53% .50% .01% .53% .70% 1.15% .50%
Other operating
expenses.......... .25 .25 .33 .25 .17 .33 .36 .63 .30
-- -- -- -- -- -- --- --- --
Administration
fees(1)......... .17 .15 .22 .15 .08 .22 .16 .18 .17
Other
expenses(1)..... .08 .10 .11 .10 .09 .11 .20 .45 .13
-- -- -- -- -- -- -- -- --
Total fund operating
expenses.......... .75% .75% .86% .75% .18% .86% 1.06% 1.78% .80%
=== === === === === === ===== ===== ===
</TABLE>
- ---------------
(1) Advisory fees are net of waivers of .05%, .05%, .02%, .05%, .19%, .02%,
.05%, .10% and .05% and administration fees are net of waivers of .06%,
.08%, .01%, .08%, .15%, .01%, .07%, .05% and .06% for the Value Equity,
Growth Equity, Small Cap Growth Equity, Core Equity, Index Equity, Small Cap
Value Equity, International Equity, International Emerging Markets and
Balanced Portfolios, respectively. PIMC and the Administrators are under no
obligation to waive or continue waiving such fees, but have informed the
Fund that they expect to waive or continue waiving such fees as necessary to
maintain the Portfolios' total operating expenses during the current fiscal
year at the levels set forth in the table. The expenses noted above under
"Other expenses" are estimated based on the level of such expenses for the
Fund's most recent fiscal year.
EXAMPLE
An investor in Institutional Shares would pay the following expenses on a
$1,000 investment in Shares of each of the Portfolios, assuming (1) 5% annual
return, and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
-------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
Value Equity................................................ $ 8 $24 $ 42 $ 93
Growth Equity............................................... 8 24 42 93
Small Cap Growth Equity..................................... 9 27 48 106
Core Equity................................................. 8 24 42 93
Index Equity................................................ 2 6 10 23
Small Cap Value Equity...................................... 9 27 48 106
International Equity........................................ 11 34 58 129
International Emerging Markets.............................. 18 56 N/A N/A
Balanced.................................................... 8 26 44 99
</TABLE>
The foregoing Expense Table and Example are intended to assist investors in
understanding the Portfolios' estimated operating expenses. Investors bear these
expenses either directly or indirectly. The information in the table for the
Value Equity, Growth Equity, Small Cap Growth Equity, Core Equity, Index Equity,
Small Cap Value Equity, International Equity and Balanced Portfolios is based on
the advisory fees, administration fees and other expenses payable after fee
waivers with respect to the particular Portfolios for the fiscal year ended
September 30, 1994, as restated to reflect revised fee waivers and
co-administration fees payable to Compass Capital Group, Inc. ("CCG"). The table
also estimates fees, expenses, waivers and assets for the International Emerging
Markets Portfolio for the current fiscal year. Total operating expenses would
have been .86%, .88%, .89%, .88%, .52%, .89%, 1.18%, 1.93% and .91% for
Institutional Shares in the Value Equity, Growth Equity, Small Cap Growth
Equity, Core Equity, Index Equity, Small Cap Value Equity, International Equity,
International Emerging Markets and Balanced Portfolios, respectively, without
such fee waivers. See Footnote 1 to the Expense Table, "Financial
Highlights -- Background," "Management," "Distribution of Shares," "How to
Purchase Shares" and "Description of Shares" for a further description of
shareholder transaction expenses and operating expenses.
THE EXAMPLE SHOWN ABOVE SHOULD NOT BE CONSIDERED A REPRESENTATION OF FUTURE
INVESTMENT RETURN OR OPERATING EXPENSES. ACTUAL INVESTMENT RETURN AND OPERATING
EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN.
PNCI-N-003N
<PAGE> 4
CO-ADMINISTRATOR
Effective December 1, 1995, CCG, whose principal business address is 345
Park Avenue, New York, New York 10154, together with PFPC Inc. and Provident
Distributors, Inc., serves as co-administrator to the Fund. CCG is a
wholly-owned, indirect subsidiary of PNC Bank Corp. CCG generally provides
ongoing business management and support services in connection with the Fund's
operations. As compensation for its services, CCG is entitled to receive a fee,
computed daily and payable monthly, at an annual rate of .03% of each
Portfolio's average daily net assets.
The date of this Supplement is December 1, 1995.
<PAGE> 5
THE PNC(R) FUND
THE EQUITY PORTFOLIOS -- INVESTOR CLASS
SUPPLEMENT TO PROSPECTUS DATED JANUARY 30, 1995
Effective December 1, 1995, the Expense Table and the Example for the Equity
Portfolios of The PNC Fund that appear on pages 3-7 are revised as follows:
<TABLE>
<CAPTION>
SMALL CAP
VALUE EQUITY GROWTH EQUITY GROWTH EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------- ---------------------- ----------------------
SERIES A SERIES B SERIES A SERIES B SERIES A SERIES B
---------- --------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Front-End Sales Charge(1)
(as a percentage of offering price).................. 4.5% None 4.5% None 4.5% None
Sales Charge on Reinvested Dividends................... None None None None None None
Deferred Sales Charge(2)
(as a percentage of original purchase price or
redemption proceeds, whichever is lower)............. None 5.0% None 5.0% None 5.0%
ANNUAL FUND OPERATING EXPENSES FOR INVESTOR SHARES
AFTER FEE WAIVERS AS A PERCENTAGE OF DAILY NET ASSETS
Advisory fees(3)....................................... .50% .50% .50% .50% .53% .53%
12b-1 fees(4).......................................... .40 .75 .40 .75 .40 .75
Other operating expenses............................... .32 .72 .32 .72 .40 .80
---- ---- ---- ---- ---- ----
Administration fees(3)............................... .17 .17 .15 .15 .22 .22
Service fees......................................... None .25 None .25 None .25
Other expenses(3).................................... .15 .30 .17 .32 .18 .33
---- ---- ---- ---- ---- ----
Total fund operating expenses.......................... 1.22% 1.97% 1.22% 1.97% 1.33% 2.08%
==== ==== ==== ==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP
CORE EQUITY INDEX EQUITY VALUE EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------- ---------------------- ----------------------
SERIES A SERIES B SERIES A SERIES B SERIES A SERIES B
---------- --------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Front-End Sales Charge(1)
(as a percentage of offering price).................. 4.5% None 4.5% None 4.5% None
Sales Charge on Reinvested Dividends................... None None None None None None
Deferred Sales Charge(2)
(as a percentage of original purchase price or
redemption proceeds, whichever is lower)............. None 5.0% None 5.0% None 5.0%
ANNUAL FUND OPERATING EXPENSES FOR INVESTOR SHARES
AFTER FEE WAIVERS AS A PERCENTAGE OF DAILY NET ASSETS
Advisory fees(3)....................................... .50% .50% .01% .01% .53% .53%
12b-1 fees(4).......................................... .40 .75 .40 .75 .40 .75
Other operating expenses............................... .32 .72 .24 .64 .40 .80
---- ---- ---- ---- ---- ----
Administration fees(3)............................... .15 .15 .08 .08 .22 .22
Service fees......................................... None .25 None .25 None .25
Other expenses(3).................................... .17 .32 .16 .31 .18 .33
---- ---- ---- ---- ---- ----
Total fund operating expenses.......................... 1.22% 1.97% .65% 1.40% 1.33% 2.08%
==== ==== ==== ==== ==== ====
</TABLE>
PNCR-N-003N
<PAGE> 6
EXPENSE TABLE
<TABLE>
<CAPTION>
INTERNATIONAL INTERNATIONAL
EQUITY EMERGING MARKETS BALANCED
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------- ---------------------- ----------------------
SERIES A SERIES B SERIES A SERIES B SERIES A SERIES B
---------- --------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Front-End Sales Charge(1)
(as a percentage of offering price).................. 4.5% None 4.5% None 4.5%
Sales Charge on Reinvested Dividends................... None None None None None None
Deferred Sales Charge(2)
(as a percentage of original purchase price or
redemption proceeds, whichever is lower)............. None 5.0% None 5.0% None 5.0%
ANNUAL FUND OPERATING EXPENSES FOR INVESTOR SHARES
AFTER FEE WAIVERS AS A PERCENTAGE OF DAILY NET ASSETS
Advisory fees(3)....................................... .70% .70% 1.15% 1.15% .50% .50%
12b-1 fees(4).......................................... .40 .75 .40 .75 .40 .75
Other operating expenses............................... .43 .83 .70 1.10 .31 .77
---- ---- ---- ---- ---- ----
Administration fees(3)............................... .16 .16 .18 .18 .17 .17
Service fees......................................... None .25 None .25 None .25
Other expenses(3).................................... .27 .42 .52 .67 .14 .35
---- ---- ---- ---- ---- ----
Total fund operating expenses.......................... 1.53% 2.28% 2.25% 3.00% 1.21% 2.02%
==== ==== ==== ==== ==== ====
</TABLE>
- ---------------
(1) Reduced front-end sales charges may be available. See "How to Purchase
Shares -- Purchases of Series A Shares."
(2) This amount applies to redemptions during the first year. The deferred sales
charge decreases 1.00% annually to 3.00% for redemptions made during the
third and fourth years and then decreases to 2.00% and 1.00% for redemptions
made during the fifth and sixth years, respectively. See "How to Purchase
Shares -- Purchases of Series B Shares."
(3) Advisory fees are net of waivers of .05%, .05%, .02%, .05%, .19%, .02%,
.05%, .10% and .05% and administration fees are net of waivers of .06%,
.08%, .01%, .08%, .15%, .01%, .07%, .05% and .06% for the Value Equity,
Growth Equity, Small Cap Growth Equity, Core Equity, Index Equity, Small Cap
Value Equity, International Equity, International Emerging Markets and
Balanced Portfolios, respectively. PIMC and the Administrators are under no
obligation to waive or continue waiving such fees, but have informed the
Fund that they expect to waive or continue waiving such fees as necessary to
maintain the Portfolios' total operating expenses during the current fiscal
year at the levels set forth in the table. The expenses noted above under
"Other expenses" are estimated based on the level of such expenses for the
Fund's most recent fiscal year. Securities dealers, financial institutions
and other industry professionals may charge their clients additional fees
for account services.
(4) Long-term shareholders may pay more than the economic equivalent of the
maximum front-end sales charges permitted by the rules of the National
Association of Securities Dealers, Inc. ("NASD").
<PAGE> 7
EXAMPLE
An investor in Investor Shares would pay the following expenses on a $1,000
investment in Shares of each of the Portfolios, assuming (1) 5% annual return,
and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
-------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
Value Equity Portfolio
Series A Shares*.................................................. $ 57 $ 82 $109 $ 186
Series B Shares (Redemption)**.................................... 70 94 129 191***
Series B Shares (No Redemption)................................... 20 62 106 191***
Growth Equity Portfolio
Series A Shares*.................................................. 57 82 109 186
Series B Shares (Redemption)**.................................... 70 94 129 191***
Series B Shares (No Redemption)................................... 20 62 106 191***
Small Cap Growth Equity Portfolio
Series A Shares*.................................................. 58 85 115 198
Series B Shares (Redemption)**.................................... 71 97 134 203***
Series B Shares (No Redemption)................................... 21 65 112 203***
Core Equity Portfolio
Series A Shares*.................................................. 57 82 109 186
Series B Shares (Redemption)**.................................... 70 94 129 191***
Series B Shares (No Redemption)................................... 20 62 106 191***
Index Equity Portfolio
Series A Shares*.................................................. 51 65 80 122
Series B Shares (Redemption)**.................................... 64 77 100 128***
Series B Shares (No Redemption)................................... 14 44 77 128***
Small Cap Value Equity Portfolio
Series A Shares*.................................................. 58 85 115 198
Series B Shares (Redemption)**.................................... 71 97 134 203***
Series B Shares (No Redemption)................................... 21 65 112 203***
International Equity Portfolio
Series A Shares*.................................................. 60 91 125 219
Series B Shares (Redemption)**.................................... 73 103 144 224***
Series B Shares (No Redemption)................................... 23 71 122 224***
International Emerging Markets Portfolio
Series A Shares*.................................................. 67 112 N/A N/A
Series B Shares (Redemption)**.................................... 80 124 N/A N/A
Series B Shares (No Redemption)................................... 30 93 N/A N/A
Balanced Portfolio
Series A Shares*.................................................. 56 82 108 185
Series B Shares (Redemption)**.................................... 71 95 131 194***
Series B Shares (No Redemption)................................... 21 63 109 194***
</TABLE>
- ---------------
* Reflects the imposition of the maximum front-end sales charge at the
beginning of the period.
** Reflects the deduction of the deferred sales charge.
*** Based on the conversion of the Series B Shares to Series A Shares after six
years.
The foregoing Expense Table and Example are intended to assist investors in
understanding the Portfolios' shareholder transaction and estimated operating
expenses. Investors bear these expenses either directly or indirectly. The
information in the table for the Value Equity, Growth Equity, Small Cap Growth
Equity, Core Equity, Index Equity, Small Cap Value Equity, International Equity
and Balanced Portfolios is based on the advisory fees, administration fees and
other expenses payable after fee waivers with respect to the particular
Portfolios for the fiscal year ended September 30, 1994, as restated to included
12b-1 fees borne by Investor Shares and service fees borne by Series B Shares
and to reflect revised fee waivers and co-administration fees payable to Compass
Capital Group, Inc. ("CCG"). The table also estimates fees, expenses, waivers
and assets for the International Emerging Markets Portfolio for the current
fiscal year. Total operating expenses would have been: i) 1.33%, 1.35%, 1.36%,
1.35%, .99%, 1.36%, 1.65%, 2.40% and 1.32% for Series A Investor Shares of the
Value Equity, Growth Equity, Small Cap Growth Equity, Core Equity, Index Equity,
Small Cap Value Equity, International Equity, International Emerging Markets and
Balanced Portfolios, respectively; and ii) 2.08%, 2.10%, 2.11%, 2.10%, 1.74%,
2.11%, 2.40%, 3.15%, and 2.13% for Series B Investor Shares of the Value Equity,
Growth Equity, Small Cap Growth Equity, Core Equity, Index Equity, Small Cap
Value Equity, International Equity, International Emerging Markets and Balanced
Portfolios, respectively, without such fee waivers. See Footnote 3 to the
Expense Table, "Management," "Distribution of Shares," "How to Purchase Shares"
and "Description of Shares" for a further description of shareholder transaction
expenses and operating expenses.
THE EXAMPLE SHOWN ABOVE SHOULD NOT BE CONSIDERED A REPRESENTATION OF FUTURE
INVESTMENT RETURN OR OPERATING EXPENSES. ACTUAL INVESTMENT RETURN AND OPERATING
EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN.
<PAGE> 8
CO-ADMINISTRATOR
Effective December 1, 1995, CCG, whose principal business address is 345
Park Avenue, New York, New York 10154, together with PFPC Inc. and Provident
Distributors, Inc., serves as co-administrator to the Fund. CCG is a
wholly-owned, indirect subsidiary of PNC Bank Corp. CCG generally provides
ongoing business management and support services in connection with the Fund's
operations. As compensation for its services, CCG is entitled to receive a fee,
computed daily and payable monthly, at an annual rate of .03% of each
Portfolio's average daily net assets.
The date of this Supplement is December 1, 1995.
<PAGE> 9
THE PNC(R) FUND
THE FIXED INCOME PORTFOLIOS -- SERVICE CLASS
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995
Effective December 1, 1995, the Expense Table and the Example for the Fixed
Income Portfolios of The PNC Fund that appear on pages 3-4 are revised as
follows:
ANNUAL FUND OPERATING EXPENSES FOR SERVICE SHARES AFTER FEE WAIVERS AND EXPENSE
REIMBURSEMENTS AS A PERCENTAGE OF DAILY NET ASSETS
<TABLE>
<CAPTION>
INTER- PENN- INTER- INTER-
MEDIATE OHIO SYLVANIA SHORT- MEDIATE GOVERN- NATIONAL
MANAGED TAX-FREE GOVERN- TAX-FREE TAX-FREE TERM TERM MENT FIXED
INCOME INCOME MENT INCOME INCOME BOND BOND INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
--------- --------- --------- --------- --------- --------- --------- --------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Advisory fees(1)..... .35% .30% .30% .30% .30% .30% .30% .30% .55%
Other operating
expenses........... .53 .55 .55 .55 .55 .55 .55 .55 .73
-- -- -- -- -- -- -- -- ---
Administration
fees(1).......... .13 .15 .10 .13 .15 .13 .15 .15
Shareholder
Servicing Fee.... .15 .15 .15 .15 .15 .15 .15 .15
Other
expenses(1)...... .26 .27 .25 .30 .27 .25 .27 .25 .43
-- -- -- -- -- -- -- -- --
Total fund operating
expenses........... .88% .85% .85% .85% .85% .85% .85% .85% 1.28%
=== === === === === === === === =====
</TABLE>
- ---------------
(1) Advisory fees are net of waivers of .15%, .20%, .20%, .20%, .20%, .20%,
.20%, .20% and 0% and administration fees are net of waivers of .11%, .10%,
.08%, .13%, .10%, .08%, .10%, .08% and .08% for the Managed Income, Tax-Free
Income, Intermediate Government, Ohio Tax-Free Income, Pennsylvania Tax-Free
Income, Short-Term Bond, Intermediate-Term Bond, Government Income and
International Fixed Income Portfolios, respectively. In addition, the
Expense Table reflects reimbursements made to the Tax-Free Income Portfolio
by the adviser. PIMC and the Administrators are under no obligation to waive
or continue waiving such fees or reimbursing such expenses, but have
informed the Fund that they expect to waive or continue waiving such fees
and reimbursing such expenses during the current fiscal year as necessary to
maintain the Portfolios' total operating expenses at the levels set forth in
the table. The expenses noted above under "Other expenses" are estimated
based on the level of such expenses for the Fund's most recent fiscal year.
EXAMPLE
An investor in Service Shares would pay the following expenses on a $1,000
investment in Shares of each of the Portfolios, assuming (1) 5% annual return,
and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
-------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
Managed Income.............................................. $ 9 $28 $ 49 $ 108
Tax-Free Income............................................. 9 27 47 105
Intermediate Government..................................... 9 27 47 105
Ohio Tax-Free Income........................................ 9 27 47 105
Pennsylvania Tax-Free Income................................ 9 27 47 105
Short-Term Bond............................................. 9 27 47 105
Intermediate-Term Bond...................................... 9 27 47 105
Government Income........................................... 9 27 N/A N/A
International Fixed Income.................................. 13 41 N/A N/A
</TABLE>
The foregoing Expense Table and Example are intended to assist investors in
understanding the Portfolios' estimated operating expenses. Investors bear these
expenses either directly or indirectly. The information in the table for the
Managed Income, Tax-Free Income, Intermediate Government, Ohio Tax-Free Income,
Pennsylvania Tax-Free Income, Short-Term Bond and Intermediate-Term Bond
Portfolios is based on the advisory and administration fees and other expenses
payable after fee waivers for the fiscal year ended September 30, 1994, as
restated to reflect revised fee waivers, fees relating to the Service Plan and
fees for other shareholder support activities borne by Service Shares and
co-administration fees payable to Compass Capital Group, Inc. ("CCG"). The table
estimates fees, expenses, waivers and assets for the other Portfolios for the
current fiscal year. Total operating expenses would have been 1.14%, 1.15%,
1.13%, 1.18%, 1.15%, 1.13%, 1.15%, 1.13% and 1.36% for Service Shares of the
Managed Income, Tax-Free Income, Intermediate Government, Ohio Tax-Free Income,
Pennsylvania Tax-Free Income, Short-Term Bond, Intermediate-Term Bond,
Government Income and International Fixed Income Portfolios, respectively,
without such fee waivers. See Footnote 1 to the Expense Table, "Financial
Highlights -- Background," "Distribution of Shares," "Management -- Shareholder
Servicing," "How to Purchase Shares" and "Description of Shares" for a further
description of shareholder transaction expenses and operating expenses.
THE EXAMPLE SHOWN ABOVE SHOULD NOT BE CONSIDERED A REPRESENTATION OF FUTURE
INVESTMENT RETURN OR OPERATING EXPENSES. ACTUAL INVESTMENT RETURN AND OPERATING
EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN.
PNCS-N-002N
<PAGE> 10
CO-ADMINISTRATOR
Effective December 1, 1995, CCG, whose principal business address is 345
Park Avenue, New York, New York 10154, together with PFPC Inc. and Provident
Distributors, Inc., serves as co-administrator to the Fund. CCG is a
wholly-owned, indirect subsidiary of PNC Bank Corp. CCG generally provides
ongoing business management and support services in connection with the Fund's
operations. As compensation for its services, CCG is entitled to receive a fee,
computed daily and payable monthly, at an annual rate of .03% of each
Portfolio's average daily net assets.
The date of this Supplement is December 1, 1995.
<PAGE> 11
THE PNC(R) FUND
THE FIXED INCOME PORTFOLIOS -- INVESTOR CLASS
SUPPLEMENT TO PROSPECTUS DATED JANUARY 30, 1995
Effective December 1, 1995, the Expense Table and the Example for the Fixed
Income Portfolios of The PNC Fund that appear on pages 3-7 are revised as
follows:
<TABLE>
<CAPTION>
INTERMEDIATE
MANAGED INCOME TAX-FREE INCOME GOVERNMENT
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------- ---------------------- ----------------------
SERIES A SERIES B SERIES A SERIES B SERIES A SERIES B
---------- --------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Front-End Sales Charge(1)
(as a percentage of offering price).................. 4.5% None 4.5% None 4.5% None
Sales Charge on Reinvested Dividends................... None None None None None None
Deferred Sales Charge(2)
(as a percentage of original purchase price or
redemption proceeds, whichever is lower)............. None 5.0% None 5.0% None 5.0%
ANNUAL FUND OPERATING EXPENSES FOR INVESTOR SHARES
AFTER FEE WAIVERS AS A PERCENTAGE OF DAILY NET ASSETS
Advisory fees(3)....................................... .35% .35% .30% .30% .30% .30%
12b-1 fees(4).......................................... .40 .75 .40 .75 .40 .75
Other operating expenses............................... .30 .70 .32 .72 .32 .72
---- ---- ---- ---- ---- ----
Administration fees(3)............................... .12 .12 .13 .13 .15 .15
Service fees......................................... None .25 None .25 None .25
Other expenses(3).................................... .18 .33 .19 .34 .17 .32
---- ---- ---- ---- ---- ----
Total fund operating expenses.......................... 1.05% 1.80% 1.02% 1.77% 1.02% 1.77%
==== ==== ==== ==== ==== ====
</TABLE>
<TABLE>
<CAPTION>
OHIO PENNSYLVANIA SHORT-TERM
TAX-FREE INCOME TAX-FREE INCOME BOND
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------- ---------------------- ----------------------
SERIES A SERIES B SERIES A SERIES B SERIES A SERIES B
---------- --------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Front-End Sales Charge(1)
(as a percentage of offering price).................. 4.5% None 4.5% None 4.5% None
Sales Charge on Reinvested Dividends................... None None None None None None
Deferred Sales Charge(2)
(as a percentage of original purchase price or
redemption proceeds, whichever is lower)............. None 5.0% None 5.0% None 5.0%
ANNUAL FUND OPERATING EXPENSES FOR INVESTOR SHARES
AFTER FEE WAIVERS AS A PERCENTAGE OF DAILY NET ASSETS
Advisory fees(3)....................................... .30% .30% .30% .30% .30% .30%
12b-1 fees(4).......................................... .40 .75 .40 .75 .40 .75
Other operating expenses............................... .32 .72 .27 .72 .32 .72
---- ---- ---- ---- ---- ----
Administration fees(3)............................... .10 .10 .13 .13 .15 .15
Service fees......................................... None .25 None .25 None .25
Other expenses(3).................................... .22 .37 .14 .34 .17 .32
---- ---- ---- ---- ---- ----
Total fund operating expenses.......................... 1.02% 1.77% .97% 1.77% 1.02% 1.77%
==== ==== ==== ==== ==== =====
</TABLE>
PNCR-N-002N
<PAGE> 12
<TABLE>
<CAPTION>
INTERMEDIATE GOVERNMENT INTERNATIONAL
TERM BOND INCOME FIXED INCOME
PORTFOLIO PORTFOLIO PORTFOLIO
---------------------- ---------------------- ----------------------
SERIES A SERIES B SERIES A SERIES B SERIES A SERIES B
---------- --------- ---------- --------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Front-End Sales Charge(1)
(as a percentage of offering price).................. 4.5% None 4.5% None 4.5% None
Sales Charge on Reinvested Dividends................... None None None None None None
Deferred Sales Charge(2)
(as a percentage of original purchase price or
redemption proceeds, whichever is lower)............. None 5.0% None 5.0% None 5.0%
ANNUAL FUND OPERATING EXPENSES FOR INVESTOR SHARES
AFTER FEE WAIVERS AS A PERCENTAGE OF DAILY NET ASSETS
Advisory fees(3)....................................... .30% .30% .30% .30% .55% .55%
12b-1 fees(4).......................................... .40 .75 .40 .75 .40 .75
Other operating expenses............................... .32 .72 .32 .72 .50 .90
---- ---- ---- ---- ---- ----
Administration fees(3)............................... .13 .13 .15 .15 .15 .15
Service fees......................................... None .25 None .25 None .25
Other expenses(3).................................... .19 .34 .17 .32 .35 .50
---- ---- ---- ---- ---- ----
Total fund operating expenses.......................... 1.02% 1.77% 1.02% 1.77% 1.45% 2.20%
==== ==== ==== ==== ==== ====
</TABLE>
- ---------------
(1) Reduced front-end sales charges may be available. See "How to Purchase
Shares -- Purchases of Series A Shares."
(2) This amount applies to redemptions during the first year. The deferred sales
charge decreases 1.00% annually to 3.00% for redemptions made during the
third and fourth years and then decreases to 2.00% and 1.00% for redemptions
made during the fifth and sixth years, respectively. See "How to Purchase
Shares -- Purchases of Series B Shares."
(3) Advisory fees are net of waivers of .15%, .20%, .20%, .20%, .20%, .20%,
.20%, .20% and .0% and administration fees are net of waivers of .11%, .10%,
.08%, .13%, .10%, .08%, .10%, .08% and .08% for the Managed Income, Tax-Free
Income, Intermediate Government, Ohio Tax-Free Income, Pennsylvania Tax-Free
Income, Short-Term Bond, Intermediate-Term Bond, Government Income and
International Fixed Income Portfolios, respectively. In addition, the
Expense Table reflects reimbursements made to the Tax-Free Income Portfolio
by the adviser. PIMC and the Administrators are under no obligation to waive
or continue waiving such fees or reimbursing such expenses, but have
informed the Fund that they expect to waive or continue waiving such fees or
reimbursing such expenses during the current fiscal year as necessary to
maintain the Portfolios' total operating expenses at the levels set forth in
the table. The expenses noted above under "Other expenses" are estimated
based on the level of such expenses for the Fund's most recent fiscal year.
Securities dealers, financial institutions and other industry professionals
may charge their clients additional fees for account services.
(4) Long-term shareholders may pay more than the economic equivalent of the
maximum front-end sales charges permitted by the rules of the National
Association of Securities Dealers, Inc. ("NASD").
<PAGE> 13
EXAMPLE
An investor in Investor Shares would pay the following expenses on a $1,000
investment in Shares of each of the Portfolios, assuming (1) 5% annual return,
and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
-------- -------------- ------------- ------------
<S> <C> <C> <C> <C>
Managed Income Portfolio
Series A Shares*................................................ $ 55 $ 77 $ 100 $167
Series B Shares (Redemption)**.................................. 68 89 120 173***
Series B Shares (No Redemption)................................. 18 57 97 173***
Tax-Free Income Portfolio
Series A Shares*................................................ 55 76 99 164
Series B Shares (Redemption)**.................................. 68 88 119 170***
Series B Shares (No Redemption)................................. 18 56 96 170***
Intermediate Government Portfolio
Series A Shares*................................................ 55 76 99 164
Series B Shares (Redemption)**.................................. 68 88 119 170***
Series B Shares (No Redemption)................................. 18 56 96 170***
Ohio Tax-Free Income Portfolio
Series A Shares*................................................ 55 76 99 164
Series B Shares (Redemption)**.................................. 68 88 119 170***
Series B Shares (No Redemption)................................. 18 56 96 170***
Pennsylvania Tax-Free Income Portfolio
Series A Shares*................................................ 54 75 98 159
Series B Shares (Redemption)**.................................. 68 88 119 167***
Series B Shares (No Redemption)................................. 18 56 96 167***
Short-Term Bond Portfolio
Series A Shares*................................................ 55 76 99 164
Series B Shares (Redemption)**.................................. 68 88 119 170***
Series B Shares (No Redemption)................................. 18 56 96 170***
Intermediate-Term Bond Portfolio
Series A Shares*................................................ 55 76 99 164
Series B Shares (Redemption)**.................................. 68 88 119 170***
Series B Shares (No Redemption)................................. 18 56 96 170***
Government Income Portfolio
Series A Shares*................................................ 55 76 N/A N/A
Series B Shares (Redemption)**.................................. 68 88 N/A N/A
Series B Shares (No Redemption)................................. 18 56 N/A N/A
International Fixed Income Portfolio
Series A Shares*................................................ 59 89 N/A N/A
Series B Shares (Redemption)**.................................. 72 101 N/A N/A
Series B Shares (No Redemption)................................. 22 69 N/A N/A
</TABLE>
- ---------------
* Reflects the imposition of the maximum front-end sales charge at the
beginning of the period.
** Reflects the deduction of the deferred sales charge.
*** Based on the conversion of the Series B Shares to Series A Shares after six
years.
The foregoing Expense Table and Example are intended to assist investors in
understanding the Portfolios' shareholder transaction and estimated operating
expenses. Investors bear these expenses either directly or indirectly. The
information in the table for the Managed Income, Tax-Free Income, Intermediate
Government, Ohio Tax-Free Income, Pennsylvania Tax-Free Income, Short-Term Bond
and Intermediate-Term Bond Portfolios is based on the advisory and
administration fees and other expenses payable after fee waivers for the fiscal
year ended September 30, 1994, as restated to include 12b-1 fees borne by
Investor Shares and service fees borne by Series B Shares and to reflect revised
fee waivers and co-administration fees payable to Compass Capital Group, Inc.
("CCG"). The table estimates fees, expenses, waivers and assets for the other
Portfolios for the current fiscal year. Total operating expenses would have
been: i) 1.31%, 1.32%, 1.30%, 1.35%, 1.32%, 1.30%, 1.32%, 1.30% and 1.53% for
Series A Investor Shares of the Managed Income, Tax-Free Income, Intermediate
Government, Ohio Tax-Free Income, Pennsylvania Tax-Free Income, Short-Term Bond,
Intermediate-Term Bond, Government Income and International Fixed Income
Portfolios, respectively; and ii) 2.06%, 2.07%, 2.05%, 2.10%, 2.07%, 2.05%,
2.07%, 2.05%, and 2.28% for Series B Investor Shares of the Managed Income,
Tax-Free Income, Intermediate Government, Ohio Tax-Free Income, Pennsylvania
Tax-Free Income, Short-Term Bond, Intermediate-Term Bond, Government Income and
International Fixed Income Portfolios, respectively, without such fee waivers.
See Footnote 3 to the Expense Table, "Financial Highlights -- Background,"
"Management," "Distribution of Shares," "How to Purchase Shares" and
"Description of Shares" for a further description of shareholder transaction
expenses and operating expenses.
THE EXAMPLE SHOWN ABOVE SHOULD NOT BE CONSIDERED A REPRESENTATION OF FUTURE
INVESTMENT RETURN OR OPERATING EXPENSES. ACTUAL INVESTMENT RETURN AND OPERATING
EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN.
<PAGE> 14
CO-ADMINISTRATOR
Effective December 1, 1995, CCG, whose principal business address is 345
Park Avenue, New York, New York 10154, together with PFPC Inc. and Provident
Distributors, Inc., serves as co-administrator to the Fund. CCG is a
wholly-owned, indirect subsidiary of PNC Bank Corp. CCG generally provides
ongoing business management and support services in connection with the Fund's
operations. As compensation for its services, CCG is entitled to receive a fee,
computed daily and payable monthly, at an annual rate of .03% of each
Portfolio's average daily net assets.
The date of this Supplement is December 1, 1995.
<PAGE> 15
THE PNC(R) FUND
THE FIXED INCOME PORTFOLIOS -- INSTITUTIONAL CLASS
SUPPLEMENT TO PROSPECTUS DATED JANUARY 30, 1995
Effective December 1, 1995, the Expense Table and Example for the Fixed
Income Portfolios of The PNC Fund that appear on page 3 are revised as follows:
ANNUAL FUND OPERATING EXPENSES FOR INSTITUTIONAL SHARES AFTER FEE WAIVERS AND
EXPENSES REIMBURSEMENTS AS A PERCENTAGE OF DAILY NET ASSETS
<TABLE>
<CAPTION>
INTER-
OHIO PENNSYLVANIA SHORT- TERM NATIONAL
MANAGED TAX-FREE INTERMEDIATE TAX-FREE TAX-FREE INTERMEDIATE- GOVERNMENT FIXED
INCOME INCOME GOVERNMENT INCOME INCOME BOND TERM BOND INCOME INCOME
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
---------- ---------- ------------ ---------- ------------ ---------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Advisory
Fees(1).... .35% .30% .30% .30% .30% .30% .30% .30% .55%
Other
operating
expenses... .23 .25 .25 .25 .25 .25 .25 .25 .43
-- -- -- -- -- -- -- -- --
Administra-
tion
fees(1)... .12 .13 .15 .10 .13 .15 .13 .15 .15
Other
expenses(1). .11 .12 .10 .15 .12 .10 .12 .10 .28
-- -- -- -- -- -- -- -- --
Total fund
operating
expenses... .58% .55% .55% .55% .55% .55% .55% .55% .98%
== == == == == == == == ==
</TABLE>
- ---------------
(1) Advisory fees are net waivers of .15%, .20%, .20%, .20%, .20%, .20%, .20%,
.20% and .0% and administration fees are net of waivers of .11%, .10%, .08%,
.13%, .10%, .08%, .10%, .08% and .08% for the Managed Income, Tax-Free
Income, Intermediate Government, Ohio Tax-Free Income, Pennsylvania Tax-Free
Income, Short-Term Bond, Intermediate-Term Bond, Government Income and
International Fixed Income Portfolios, respectively. In addition, the
Expense Table reflects reimbursements made to the Tax-Free Income Portfolio
by the adviser. PIMC and the Administrators are under no obligation to waive
or continue waiving such fees or reimbursing such expenses, but have
informed the Fund that they expect to waive or continue waiving such fees
and reimbursing such expenses during the current fiscal year as necessary to
maintain the Portfolios' total operating expenses at the levels set forth in
the table. The expenses noted above under "Other expenses" are estimated
based on the level of such expenses for the Fund's most recent fiscal year.
EXAMPLE
An investor in Institutional Shares would pay the following expenses on a
$1,000 investment in Shares of each of the Portfolios, assuming (1) 5% annual
return, and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
-------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
Managed Income.............................................. $ 6 $19 $32 $73
Tax-Free Income............................................. 6 18 31 69
Intermediate Government..................................... 6 18 31 69
Ohio Tax-Free Income........................................ 6 18 31 69
Pennsylvania Tax-Free Income................................ 6 18 31 69
Short-Term Bond............................................. 6 18 31 69
Intermediate-Term Bond...................................... 6 18 31 69
Government Income........................................... 6 18 N/A N/A
International Fixed Income.................................. 10 31 N/A N/A
</TABLE>
The foregoing Expense Table and Example are intended to assist investors in
understanding the Portfolios' estimated operating expenses. Investors bear these
expenses either directly or indirectly. The information in the table for the
Managed Income, Tax-Free Income, Intermediate Government, Ohio Tax-Free Income,
Pennsylvania Tax-Free Income, Short-Term Bond and Intermediate-Term Bond
Portfolios is based on the advisory and administration fees and other expenses
payable after fee waivers for the fiscal year ended September 30, 1994, as
restated to reflect revised fee waivers and co-administration fees payable to
Compass Capital Group, Inc. ("CCG"). The table estimates fees, expenses, waivers
and assets for the other Portfolios for the current fiscal year. Total operating
expenses would have been .84%, .85%, .83%, .88%, .85%, .83% .85%, .83% and 1.06%
for Institutional Shares of the Managed Income, Tax-Free Income, Intermediate
Government, Ohio Tax-Free Income, Pennsylvania Tax-Free Income, Short-Term Bond,
Intermediate-Term Bond, Government Income and International Fixed Income
Portfolios, respectively, without such fee waivers. See Footnote 1 to the
Expense Table, "Financial Highlights -- Background," "Management," "Distribution
of Shares," "How to Purchase Shares" and "Description of Shares" for a further
description of shareholder transaction expenses and operating expenses.
THE EXAMPLE SHOWN ABOVE SHOULD NOT BE CONSIDERED A REPRESENTATION OF FUTURE
INVESTMENT RETURN OR OPERATING EXPENSES. ACTUAL INVESTMENT RETURN AND OPERATING
EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN.
PNCI-N-002N
<PAGE> 16
CO-ADMINISTRATOR
Effective December 1, 1995, CCG, whose principal business address is 345
Park Avenue, New York, New York 10154, together with PFPC Inc. and Provident
Distributors, Inc., serves as co-administrator to the Fund. CCG is a
wholly-owned, indirect subsidiary of PNC Bank Corp. CCG generally provides
ongoing business management and support services in connection with the Fund's
operations. As compensation for its services, CCG is entitled to receive a fee,
computed daily and payable monthly, at an annual rate of .03% of each
Portfolio's average daily net assets.
The date of this Supplement is December 1, 1995.
