COMPASS CAPITAL FUNDS(SM)
THE EQUITY PORTFOLIOS/INSTITUTIONAL CLASS
SUPPLEMENT TO PROSPECTUS DATED
JANUARY 1, 1997
The section entitled "What Are The Expenses Of The Portfolios?" has been
amended as follows:
The following paragraph has been added after the expense table on
page 4:
The Fund has been advised that effective June 1, 1997,
the amount of fees waived voluntarily by PAMG and the
Portfolios' administrators will be reduced with respect
to the Large Cap Value Equity, Large Cap Growth Equity,
Small Cap Value Equity, Small Cap Growth Equity, Select
Equity and Balanced Portfolios. This reduction in fee
waivers will increase the total operating expenses (after
fee waivers) of these Portfolios' Institutional Shares to
the following levels (expressed as a percentage of
average net assets): Large Cap Value Equity Portfolio,
.84%; Large Cap Growth Equity Portfolio, .87%; Small Cap
Value Equity Portfolio, .88%; Small Cap Growth Equity
Portfolio, .88%; Select Equity Portfolio, .86%; and
Balanced Portfolio, .90%. PAMG and the Portfolios'
administrators are under no obligation to waive or
continue waiving their fees.
The information in the Example on page 5 relating to the Large
Cap Value Equity, Large Cap Growth Equity, Small Cap Value
Equity, Small Cap Growth Equity, Select Equity and Balanced
Portfolios has been replaced with the following:
An investor in Institutional Shares would pay the
following expenses on a $1,000 investment assuming (1) 5%
annual return, and (2) redemption at the end of each time
period:
<TABLE>
<CAPTION>
Portfolio One Year Three Years Five Years Ten Years
--------- -------- ----------- ---------- ---------
<S> <C> <C> <C> <C>
Large Cap Value Equity $9 $27 $47 $104
Large Cap Growth Equity 9 28 48 107
Small Cap Value Equity 9 28 49 108
Small Cap Growth Equity 9 28 49 108
Select Equity 9 27 48 106
Balanced 9 29 50 111
</TABLE>
<PAGE>
In addition to the compensation itemized in the expense table,
institutions that sell Portfolio shares and/or their salespersons may
receive compensation for the sale and distribution of shares or for
services to the Portfolios. For information regarding such compensation,
see "How Are Shares Purchased And Redeemed? -- Distributor" in the
Prospectus and "Investment Advisory, Administration, Distribution and
Servicing Arrangements" in the Statement of Additional Information.
Fund Management
---------------
The section entitled "Who Manages The Fund?" has been amended as follows:
The portfolio managers for the Large Cap Value Equity, Mid-Cap
Value Equity and Large Cap Growth Equity Portfolios are as
follows:
Portfolio Portfolio Manager(s)
--------- --------------------
Large Cap Value Equity Daniel B. Eagan; portfolio
manager with Provident Capital
Management, Inc. ("PCM") since 1995;
director of investment strategy at PNC
Asset Management Group, Inc. during 1994
and 1995; prior to 1994, served as
senior research consultant for Mercer
Investment Consulting; Portfolio
manager since January 1997.
Mid-Cap Value Equity Daniel B. Eagan (see above).
Portfolio co-manager since its inception.
Christian K. Stadlinger;
Vice President of PCM since July 1996;
prior to joining PCM, Portfolio Manager
and Research Analyst with Morgan Stanley
Asset Management; Portfolio co-manager
since January 1997.
Large Cap Growth Equity R. Andrew Damm; investment manager with
PEAC since 1997; senior investment
strategist with PAMG since 1995;
portfolio manager with PNC Bank from
1988 to 1995; Mr. Damm has participated
in the management of the Portfolio since
1996 and has been designated Portfolio
manager since September 1997.
<PAGE>
Administrators
- --------------
The second sentence in the second paragraph under "Administrators" is
changed to reflect that PFPC and CDI are entitled to receive a combined
administration fee, computed daily and payable monthly, at the aggregate
annual rate of 0.20% of the first $500 million of average daily net
assets allocated to the Institutional Shares of each Portfolio, 0.18% of
the next $500 million of average daily net assets allocated to the
Institutional Shares of each Portfolio and 0.16% of the average daily net
assets allocated to the Institutional Shares of each Portfolio in excess
of $1 billion.
Purchases by Customers of Broker-Dealers
----------------------------------------
The following paragraph has been added after the last paragraph in the
section entitled "How Are Shares Purchased And Redeemed?":
Shares of the Portfolios may be purchased by customers of broker-
dealers and agents which have established a servicing
relationship with the Fund on behalf of their customers. These
broker-dealers and agents may impose additional or different
conditions on the purchase or redemption of Portfolio shares by
their customers and may charge their customers transaction,
account or other fees on the purchase and redemption of Portfolio
shares. Each broker-dealer or agent is responsible for
transmitting to its customers a schedule of any such fees and
information regarding any additional or different conditions
regarding purchases and redemptions. Shareholders who are
customers of such broker-dealers or agents should consult them
for information regarding these fees and conditions.
Class Expenses
--------------
The first sentence in the second paragraph under "How Is The Fund
Organized?" is replaced with the following:
Shares of each class bear their pro rata portion of all
operating expenses paid by a Portfolio, except transfer agency
fees, certain administrative/servicing fees and amounts payable
under the Fund's Distribution and Service Plan.
This Supplement is dated October 2, 1997.
