<PAGE>
COMPASS CAPITAL FUNDSSM COMPASS CAPITAL FUNDS(SM)
THE BOND PORTFOLIOS/INVESTOR CLASSES
SUPPLEMENT TO PROSPECTUS DATED
JANUARY 1, 1997
Low Duration Bond Portfolio - Change in Investment Policies
- -----------------------------------------------------------
Effective May 15, 1997 the investment policies of the Low Duration Bond
Portfolio will be modified, and the disclosure in the Prospectus is changed as
follows:
A. Credit Quality
--------------
The information on the credit quality concentration and minimum credit
quality for the Low Duration Bond Portfolio in the sections "What Are The
Differences Among The Portfolios?" and "What Additional Investment Policies
And Risks Apply?" are replaced with the following:
PORTFOLIO CREDIT QUALITY CONCENTRATION MINIMUM CREDIT QUALITY
- -------------------------------------------------------------------------
Low Duration Bond Investment Grade Spectrum B
=========================================================================
Securities acquired by the Low Duration Bond Portfolio will generally
be rated investment grade at the time of purchase or, if unrated, of
comparable quality as determined by the Portfolio's sub-adviser. The Low
Duration Bond Portfolio may, however, invest in non-investment grade fixed
income or convertible securities when the Portfolio's sub-adviser believes
that the investment characteristics of such securities make them desirable
in light of the Portfolio's investment objective and current portfolio mix,
so long as under normal market and economic conditions, (i) no more than
20% of the total assets of the Portfolio are invested in non-investment
grade securities and (ii) such securities are rated "B" or higher at the
time of purchase by at least one major rating agency. Non-investment grade
securities (those that are rated "Ba" or lower by Moody's or "BB" or lower
by S&P, Duff or Fitch) are commonly referred to as "junk bonds." To the
extent that the securities acquired by the Low Duration Bond Portfolio are
not rated investment grade, there is a greater risk as to the timely
repayment of the principal on, and timely payment of interest or dividends
with respect to, such securities. Particular risks associated with lower-
rated securities are (a) the sensitivity of such securities to interest
rate and economic changes, (b) the lower degree of expected protection of
principal and interest payments, (c) the creditworthiness of the issuers of
such securities, (d) the relatively low trading market liquidity for the
securities, (e) the relative youth and growth of the market for such
securities, and (f) the impact that legislation may have on the high yield
bond market (and, in turn, on the Portfolio's net asset value and
investment practices). During an economic downturn or substantial period of
rising interest rates, leveraged issuers may experience financial stress
which would adversely affect their ability to service their principal and
interest payment obligations, to meet projected business goals, and to
obtain additional financing. An economic downturn could also disrupt the
market for lower-rated securities and adversely affect the value of
outstanding securities and the ability of the issuers to repay principal
and interest. If the issuer of a security held by the Low Duration Bond
Portfolio defaulted, the Portfolio could incur additional expenses to seek
recovery. Adverse publicity and investor perceptions, whether or not they
are based on fundamental analysis, could also decrease the value and
liquidity of lower-rated securities held by the Portfolio, especially in a
thinly-traded market.
<PAGE>
B. Foreign Investments
-------------------
The Low Duration Bond Portfolio may invest up to 20% of its total
assets in debt securities of foreign issuers on either a currency hedged or
unhedged basis, and may hold from time to time various foreign currencies
pending investment or conversion into U.S. dollars. Some of these
instruments may have the characteristics of futures contracts. In addition,
the Low Duration Bond Portfolio may engage in foreign currency exchange
transactions to seek to protect against changes in the level of future
exchange rates which would adversely affect the Portfolio's performance.
These investments and transactions involving foreign securities,
currencies, options (including options that relate to foreign currencies),
futures, hedging and cross-hedging are described under the sub-sections
captioned "Foreign Investments," "Interest Rate and Currency Transactions"
and "Options and Futures Contracts" under "What Additional Investment
Policies And Risks Apply?"
Administration Fees
- -------------------
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 Investor Shares
of each Portfolio, 0.18% of the next $500 million of average daily net assets
allocated to the Investor Shares of each Portfolio and 0.16% of the average
daily net assets allocated to the Investor Shares of each Portfolio in excess of
$1 billion.
Sales Loads, Broker Reallowances and Placement Fees
- ---------------------------------------------------
The following schedule of sales charges for Investor A Share trades of
$1,000,000 and above is to be added to the schedules found under "What Is The
Schedule Of Sales Charges And Exemptions?" beginning on pg. 46.
Low Duration Bond, Intermediate Government Bond, Intermediate Bond, Core Bond,
Tax-Free Income, Pennsylvania Tax-Free Income, New Jersey Tax-Free Income and
Ohio Tax-Free Income Portfolios:
<TABLE>
<CAPTION>
Amount of
Transaction at Sales Charge as a % of Sales Charge as a % of Net Reallowance or Placement Fees to
Offering Price Offering Price* Asset Value* Dealers (as a % of Offering Price)**
(in millions)
<S> <C> <C> <C>
$1 - 2 0.00% 0.00% 0.75%
$2 - 3 0.00% 0.00% 0.72%
$3 - 5 0.00% 0.00% 0.63%
$5 - 10 0.00% 0.00% 0.44%
$10 - 15 0.00% 0.00% 0.38%
$15 - 20 0.00% 0.00% 0.35%
$20 - 40 0.00% 0.00% 0.30%
Government Income, Managed Income and International Bond Portfolios:
<CAPTION>
Amount of
Transaction at Sales Charge as a % of Sales Charge as a % of Net Reallowance or Placement Fees to
Offering Price Offering Price* Asset Value* Dealers (as a % of Offering Price)**
(in millions)
<S> <C> <C> <C>
$1 - 2 0.00% 0.00% 1.00%
$2 - 3 0.00% 0.00% 0.95%
$3 - 5 0.00% 0.00% 0.87%
$5 - 10 0.00% 0.00% 0.69%
$10 - 15 0.00% 0.00% 0.62%
$15 - 20 0.00% 0.00% 0.53%
$20 - 40 0.00% 0.00% 0.39%
</TABLE>
* There is no initial sales charge on purchases of $1,000,000 or more of
Investor A Shares; however, a contingent deferred sales charge of 1.00% will
be imposed on the lesser of the offering price or the net asset value of the
shares on the redemption date for shares redeemed within 18 months after
purchase.
** The Distributor may pay placement fees to dealers as shown on purchases of
Investor A Shares of $1,000,000 or more.
Sales Charge Waivers
- --------------------
The section entitled "What Is The Schedule Of Sales Charges And Exemptions?" has
been amended as follows:
The second sentence under the caption "Sales Charge Waivers -- Investor A
Shares" has been amended to reflect that registered investment advisers,
trust companies and bank trust departments exercising discretionary
investment authority with respect to amounts to be invested in a Portfolio
may purchase Investor A Shares without a sales load, provided that the
aggregate amount invested pursuant to this exemption in Investor A Shares
of Fund portfolios that would otherwise be subject to front-end sales
charges equals at least $250,000.
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 May 15, 1997.
<PAGE>
COMPASS CAPITAL FUNDSSM COMPASS CAPITAL FUNDS(SM)
THE BOND PORTFOLIOS/SERVICE CLASS
SUPPLEMENT TO PROSPECTUS DATED
JANUARY 1, 1997
Low Duration Bond Portfolio - Change in Investment Policies
- -----------------------------------------------------------
Effective May 15, 1997 the investment policies of the Low Duration Bond
Portfolio will be modified, and the disclosure in the Prospectus is changed as
follows:
A. Credit Quality
--------------
The information on the credit quality concentration and minimum credit
quality for the Low Duration Bond Portfolio in the sections "What Are The
Differences Among The Portfolios?" and "What Additional Investment Policies
And Risks Apply?" are replaced with the following:
PORTFOLIO CREDIT QUALITY CONCENTRATION MINIMUM CREDIT QUALITY
- -------------------------------------------------------------------------
Low Duration Bond Investment Grade Spectrum B
=========================================================================
Securities acquired by the Low Duration Bond Portfolio will generally
be rated investment grade at the time of purchase or, if unrated, of
comparable quality as determined by the Portfolio's sub-adviser. The Low
Duration Bond Portfolio may, however, invest in non-investment grade fixed
income or convertible securities when the Portfolio's sub-adviser believes
that the investment characteristics of such securities make them desirable
in light of the Portfolio's investment objective and current portfolio mix,
so long as under normal market and economic conditions, (i) no more than
20% of the total assets of the Portfolio are invested in non-investment
grade securities and (ii) such securities are rated "B" or higher at the
time of purchase by at least one major rating agency. Non-investment grade
securities (those that are rated "Ba" or lower by Moody's or "BB" or lower
by S&P, Duff or Fitch) are commonly referred to as "junk bonds." To the
extent that the securities acquired by the Low Duration Bond Portfolio are
not rated investment grade, there is a greater risk as to the timely
repayment of the principal on, and timely payment of interest or dividends
with respect to, such securities. Particular risks associated with lower-
rated securities are (a) the sensitivity of such securities to interest
rate and economic changes, (b) the lower degree of expected protection of
principal and interest payments, (c) the creditworthiness of the issuers of
such securities, (d) the relatively low trading market liquidity for the
securities, (e) the relative youth and growth of the market for such
securities, and (f) the impact that legislation may have on the high yield
bond market (and, in turn, on the Portfolio's net asset value and
investment practices). During an economic downturn or substantial period
of rising interest rates, leveraged issuers may experience financial stress
which would adversely affect their ability to service their principal and
interest payment obligations, to meet projected business goals, and to
obtain additional financing. An economic downturn could also disrupt the
market for lower-rated securities and adversely affect the value of
outstanding securities and the ability of the issuers to repay principal
and interest. If the issuer of a security held by the Low Duration Bond
Portfolio defaulted, the Portfolio could incur additional expenses to seek
recovery. Adverse publicity and investor perceptions, whether or not they
are based on fundamental analysis, could also decrease the value and
liquidity of lower-rated securities held by the Portfolio, especially in a
thinly-traded market.
<PAGE>
B. Foreign Investments
-------------------
The Low Duration Bond Portfolio may invest up to 20% of its total
assets in debt securities of foreign issuers on either a currency hedged or
unhedged basis, and may hold from time to time various foreign currencies
pending investment or conversion into U.S. dollars. Some of these
instruments may have the characteristics of futures contracts. In addition,
the Low Duration Bond Portfolio may engage in foreign currency exchange
transactions to seek to protect against changes in the level of future
exchange rates which would adversely affect the Portfolio's performance.
These investments and transactions involving foreign securities,
currencies, options (including options that relate to foreign currencies),
futures, hedging and cross-hedging are described under the sub-sections
captioned "Foreign Investments," "Interest Rate and Currency Transactions"
and "Options and Futures Contracts" under "What Additional Investment
Policies And Risks Apply?"
Administration Fees
- -------------------
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 Service Shares
of each Portfolio, 0.18% of the next $500 million of average daily net assets
allocated to the Service Shares of each Portfolio and 0.16% of the average daily
net assets allocated to the Service Shares of each Portfolio in excess of $1
billion.
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 May 15, 1997.
<PAGE>
COMPASS CAPITAL FUNDSSM COMPASS CAPITAL FUNDS(SM)
THE BOND PORTFOLIOS/INSTITUTIONAL CLASS
SUPPLEMENT TO PROSPECTUS DATED
JANUARY 1, 1997
Low Duration Bond Portfolio - Change in Investment Policies
- -----------------------------------------------------------
Effective May 15, 1997 the investment policies of the Low Duration Bond
Portfolio will be modified, and the disclosure in the Prospectus is changed as
follows:
A. Credit Quality
--------------
The information on the credit quality concentration and minimum credit
quality for the Low Duration Bond Portfolio in the sections "What Are The
Differences Among The Portfolios?" and "What Additional Investment Policies
And Risks Apply?" are replaced with the following:
PORTFOLIO CREDIT QUALITY CONCENTRATION MINIMUM CREDIT QUALITY
- -------------------------------------------------------------------------
Low Duration Bond Investment Grade Spectrum B
=========================================================================
Securities acquired by the Low Duration Bond Portfolio will generally
be rated investment grade at the time of purchase or, if unrated, of
comparable quality as determined by the Portfolio's sub-adviser. The Low
Duration Bond Portfolio may, however, invest in non-investment grade fixed
income or convertible securities when the Portfolio's sub-adviser believes
that the investment characteristics of such securities make them desirable
in light of the Portfolio's investment objective and current portfolio mix,
so long as under normal market and economic conditions, (i) no more than
20% of the total assets of the Portfolio are invested in non-investment
grade securities and (ii) such securities are rated "B" or higher at the
time of purchase by at least one major rating agency. Non-investment grade
securities (those that are rated "Ba" or lower by Moody's or "BB" or lower
by S&P, Duff or Fitch) are commonly referred to as "junk bonds." To the
extent that the securities acquired by the Low Duration Bond Portfolio are
not rated investment grade, there is a greater risk as to the timely
repayment of the principal on, and timely payment of interest or dividends
with respect to, such securities. Particular risks associated with lower-
rated securities are (a) the sensitivity of such securities to interest
rate and economic changes, (b) the lower degree of expected protection of
principal and interest payments, (c) the creditworthiness of the issuers of
such securities, (d) the relatively low trading market liquidity for the
securities, (e) the relative youth and growth of the market for such
securities, and (f) the impact that legislation may have on the high yield
bond market (and, in turn, on the Portfolio's net asset value and
investment practices). During an economic downturn or substantial period
of rising interest rates, leveraged issuers may experience financial stress
which would adversely affect their ability to service their principal and
interest payment obligations, to meet projected business goals, and to
obtain additional financing. An economic downturn could also disrupt the
market for lower-rated securities and adversely affect the value of
outstanding securities and the ability of the issuers to repay principal
and interest. If the issuer of a security held by the Low Duration Bond
Portfolio defaulted, the Portfolio could incur additional expenses to seek
recovery. Adverse publicity and investor perceptions, whether or not they
are based on fundamental analysis, could also decrease the value and
liquidity of lower-rated securities held by the Portfolio, especially in a
thinly-traded market.
<PAGE>
B. Foreign Investments
-------------------
The Low Duration Bond Portfolio may invest up to 20% of its total
assets in debt securities of foreign issuers on either a currency hedged or
unhedged basis, and may hold from time to time various foreign currencies
pending investment or conversion into U.S. dollars. Some of these
instruments may have the characteristics of futures contracts. In addition,
the Low Duration Bond Portfolio may engage in foreign currency exchange
transactions to seek to protect against changes in the level of future
exchange rates which would adversely affect the Portfolio's performance.
These investments and transactions involving foreign securities,
currencies, options (including options that relate to foreign currencies),
futures, hedging and cross-hedging are described under the sub-sections
captioned "Foreign Investments," "Interest Rate and Currency Transactions"
and "Options and Futures Contracts" under "What Additional Investment
Policies And Risks Apply?"
Administration Fees
- -------------------
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.
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.
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.
This Supplement is dated May 15, 1997.
<PAGE>
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>
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 and Mid-Cap Value
Equity Portfolios are as follows:
Portfolio Portfolio Manager(s)
- --------- --------------------
Large Cap Growth 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.
<PAGE>
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.
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 May 15, 1997.
<PAGE>
COMPASS CAPITAL FUNDS/SM/
THE EQUITY PORTFOLIOS/INVESTOR CLASSES
SUPPLEMENT TO PROSPECTUS DATED
JANUARY 1, 1997
The section "What Are The Expenses Of The Portfolios?" has been amended as
follows:
The following paragraph has been added after the expense table on page 7:
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' Investor Shares to the following levels (expressed as a
percentage of average net assets): Large Cap Value Equity Portfolio,
Investor A - 1.31%, Investor B and Investor C - 2.06%; Large Cap
Growth Equity Portfolio, Investor A - 1.34%, Investor B and Investor
C - 2.09%; Small Cap Value Equity Portfolio, Investor A - 1.34%,
Investor B and Investor C - 2.10%; Small Cap Growth Equity Portfolio,
Investor A - 1.35%, Investor B and Investor C - 2.11%; Select Equity
Portfolio, Investor A - 1.33%, Investor B and Investor C - 2.08%; and
Balanced Portfolio, Investor A - 1.31%, Investor B and Investor C -
2.12%. PAMG and the Portfolios' administrators are under no obligation
to waive or continue waiving their fees.
The information in the Example on page 8 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 Investor Shares would pay the following expenses on a $1,000
investment assuming (1) 5% annual return, (2) redemption at the end of each
time period and (3) with respect to Investor B Shares only, no redemption at the
end of each time period:
<TABLE>
<CAPTION>
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
<S> <C> <C> <C> <C>
Large Cap Value Equity Portfolio
A Shares/*/ $58 $ 85 $114 $ 196
B Shares (Redemption)/**/ 56 102 133 219/***/
B Shares (No Redemption) 21 65 111 219/***/
C Shares 21 65 111 239
Large Cap Growth Equity Portfolio
A Shares/*/
B Shares (Redemption)/**/ 58 86 115 199
B Shares (No Redemption) 66 103 136 223/***/
C Shares 21 65 112 223/***/
21 65 112 242
Small Cap Value Equity Portfolio
A Shares/*/ 58 86 116 200
B Shares (Redemption)/**/ 66 103 135 224/***/
B Shares (No Redemption) 21 66 113 224/***/
C Shares 21 66 113 243
Small Cap Growth Equity Portfolio
A Shares/*/ 58 88 116 200
B Shares (Redemption)/**/ 66 103 135 224/***/
B Shares (No Redemption) 21 66 113 224/***/
C Shares 21 66 113 243
Select Equity Portfolio
A Shares/*/ 58 85 115 198
B Shares (Redemption)/**/ 66 102 134 222/***/
B Shares (No Redemption) 21 65 112 222/***/
C Shares 21 65 112 241
Balanced Portfolio
A Shares/*/ 58 85 114 196
B Shares (Redemption)/**/ 67 103 136 226/***/
B Shares (No Redemption) 22 66 114 226/***/
C Shares 22 66 114 245
=================================================================================
</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 Investor B Shares to Investor A Shares
after eight years.
<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 "What is the Schedule of Sales
Charges and Exemptions?" in the Prospectus and "Investment Advisory,
Administration, Distribution and Servicing Arrangements" in the Statement of
Additional Information.
Fund Management
- ---------------
The section "Who Manages The Fund?" has been amended as follows:
The portfolio managers for the Large Cap Value Equity and Mid-Cap Value
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.
Administration Fees
- -------------------
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 Investor Shares
of each Portfolio, 0.18% of the next $500 million of average daily net assets
allocated to the Investor Shares of each Portfolio and 0.16% of the average
daily net assets allocated to the Investor Shares of each Portfolio in excess of
$1 billion.
Sales Loads, Broker Reallowances and Placement Fees
- ---------------------------------------------------
The following schedule of sales charges for Investor A Share trades of
$1,000,000 and above is to be added to the schedules found under "What Is The
Schedule Of Sales Charges And Exemptions?" on pg. 46.
FOR ALL EQUITY PORTFOLIOS EXCEPT INDEX EQUITY PORTFOLIO:
<TABLE>
<CAPTION>
AMOUNT OF TRANSACTION AT SALES CHARGE AS A % OF OFFERING SALES CHARGE AS A % OF NET REALLOWANCE OR PLACEMENT FEES TO
OFFERING PRICE PRICE* ASSET VALUE* DEALERS (AS A % OF OFFERING
(IN MILLIONS) PRICE)**
<S> <C> <C> <C>
$1 - 2 0.00% 0.00% 1.00%
$2 - 3 0.00% 0.00% 0.95%
$3 - 5 0.00% 0.00% 0.87%
$5 - 10 0.00% 0.00% 0.69%
$10 - 15 0.00% 0.00% 0.62%
$15 - 20 0.00% 0.00% 0.53%
$20 - 40 0.00% 0.00% 0.39%
INDEX EQUITY PORTFOLIO:
<CAPTION>
AMOUNT OF TRANSACTION AT SALES CHARGE AS A % OF OFFERING SALES CHARGE AS A % OF NET REALLOWANCE OR PLACEMENT FEES TO
OFFERING PRICE PRICE* ASSET VALUE* DEALERS (AS A % OF OFFERING
(IN MILLIONS) PRICE)**
<S> <C> <C> <C>
$1 - 2 0.00% 0.00% 0.50%
$2 - 3 0.00% 0.00% 0.45%
$3 - 5 0.00% 0.00% 0.37%
$5 - 10 0.00% 0.00% 0.31%
$10 - 15 0.00% 0.00% 0.29%
$15 - 20 0.00% 0.00% 0.28%
$20 - 40 0.00% 0.00% 0.27%
</TABLE>
* There is no initial sales charge on purchase of $1,000,000 or more of
Investor A Shares; however, a contingent deferred sales charge of 1.00% will
be imposed on the lesser of the offering price or the net asset value of the
shares on the redemption date for shares redeemed within 18 months after
purchase.
** The Distributor may pay placement fees to dealers as shown on purchases of
Investor A Shares of $1,000,000 or more.
<PAGE>
Sales Charges and Exemptions
- ----------------------------
The section "What Is The Schedule Of Sales Charges And Exemptions?" has been
amended as follows:
The second sentence under the caption "Sales Charge Waivers -- Investor A
Shares" has been amended to reflect that registered investment advisers,
trust companies and bank trust departments exercising discretionary
investment authority with respect to amounts to be invested in a Portfolio
may purchase Investor A Shares without a sales load, provided that the
aggregate amount invested pursuant to this exemption in Investor A Shares
of Fund portfolios that would otherwise be subject to front-end sales
charges equals at least $250,000.
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 May 15, 1997.
<PAGE>
COMPASS CAPITAL FUNDS/SM/
THE EQUITY PORTFOLIOS/SERVICE 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' Service Shares to the following levels (expressed as a
percentage of average net assets): Large Cap Value Equity Portfolio,
1.14%; Large Cap Growth Equity Portfolio, 1.17%; Small Cap Value
Equity Portfolio, 1.18%; Small Cap Growth Equity Portfolio, 1.18%;
Select Equity Portfolio, 1.16%; and Balanced Portfolio, 1.20%. 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 Service 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 $12 $36 $63 $139
Large Cap Growth Equity 12 37 64 142
Small Cap Value Equity 12 37 65 143
Small Cap Growth Equity 12 37 65 143
Select Equity 12 37 64 141
Balanced 12 38 66 145
=======================================================================
</TABLE>
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 and Mid-Cap Value
Equity Portfolios are as follows:
Portfolio Portfolio Manager(s)
- --------- --------------------
Large Cap Growth 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.
<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 Service Shares
of each Portfolio, 0.18% of the next $500 million of average daily net assets
allocated to the Service Shares of each Portfolio and 0.16% of the average daily
net assets allocated to the Service Shares of each Portfolio in excess of $1
billion.
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 May 15, 1997.
<PAGE>
COMPASS CAPITAL FUNDS/SM/
THE MONEY MARKET 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 each Portfolio. This reduction in fee
waivers will increase the total operating expenses (after fee waivers)
of each Portfolio's Institutional Shares to .34% of its average net
assets. 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 Portfolios has
been replaced with the following:
An investor in Service Shares in any Portfolio 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>
==============================================
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
- ---------- ----------- ---------- ---------
<S> <C> <C> <C>
$3 $11 $19 $43
==============================================
</TABLE>
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.
The section entitled "Who Manages The Fund?" has been amended as follows:
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 0.15% of the
first $500 million of average daily net assets allocated to the Institutional
Shares of each Portfolio, 0.13% of the next $500 million of average daily net
assets allocated to the Institutional Shares of each Portfolio and 0.10% of the
average daily net assets allocated to the Institutional Shares of each Portfolio
in excess of $1 billion.
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 May 15, 1997.
<PAGE>
COMPASS CAPITAL FUNDS/SM/
THE MONEY MARKET PORTFOLIOS/INVESTOR CLASSES
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 tables on page 5:
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 each Portfolio. This reduction in fee
waivers will increase the total operating expenses (after fee waivers)
of each Portfolio's Investor Shares to the following levels (expressed
as a percentage of average net assets): Investor A - .91%; Investor B
and Investor C - 1.41%. PAMG and the Portfolios' administrators are
under no obligation to waive or continue waiving their fees.
The information in the Example on page 6 relating to the Portfolios has
been replaced with the following:
An investor in Investor Shares in any Portfolio 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>
=====================================================================================
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
---- ----- ----- -----
<S> <C> <C> <C> <C>
A Shares $ 9 $29 $50 $ 112
B Shares/*/ 14 45 77 155/**//149/***/
C Shares/*/ 14 45 77 169
=====================================================================================
</TABLE>
* These expense figures do not reflect the imposition of the deferred sales
charge which may be deducted upon the redemption of Investor B or Investor
C Shares of a Portfolio received in an exchange transaction for Investor B
or Investor C Shares of a non-money market investment portfolio of the Fund
as described in the applicable prospectuses. No deferred sales charge is
deducted upon the redemption of Investor B or Investor C Shares of a
Portfolio that are purchased from the Fund and not acquired by exchange.
See "What Are The Shareholder Features Of The Fund? - Exchange Privilege."
** Based on the conversion of Investor B Shares to Investor A Shares after
eight years (applies to shares received in an exchange transaction for
Investor B Shares of an equity portfolio of the Fund).
*** Based on the conversion of Investor B Shares to Investor A Shares after
seven years (applies to shares received in an exchange transaction for
Investor B Shares of a fixed income portfolio of the Fund).
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 "Who Manages The Fund? - Distribution and Service Plan" in the
Prospectus and "Investment Advisory, Administration, Distribution and
Servicing Arrangements" in the Statement of Additional Information.
<PAGE>
The section entitled "Who Manages The Fund?" has been amended as follows:
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 0.15% of the
first $500 million of average daily net assets allocated to the Investor Shares
of each Portfolio, 0.13% of the next $500 million of average daily net assets
allocated to the Investor Shares of each Portfolio and 0.10% of the average
daily net assets allocated to the Inestor Shares of each Portfolio in excess of
$1 billion.
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 May 15, 1997.
<PAGE>
COMPASS CAPITAL FUNDS/SM/
THE MONEY MARKET PORTFOLIOS/SERVICE 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 each Portfolio. This reduction in fee
waivers will increase the total operating expenses (after fee waivers)
of each Portfolio's Service Shares to .64% of its average net assets.
PAMG and the Portfolios' administrators are under no obligation to
waive or continue waiving their fees.
The information in the Example on page 4 relating to the Portfolios has
been replaced with the following:
An investor in Service Shares in any Portfolio 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>
==============================================
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
- ---------- ----------- ---------- ---------
<S> <C> <C> <C>
$7 $20 $36 $80
==============================================
</TABLE>
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.
The section entitled "Who Manages The Fund?" has been amended as follows:
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 0.15% of the
first $500 million of average daily net assets allocated to the Service Shares
of each Portfolio, 0.13% of the next $500 million of average daily net assets
allocated to the Service Shares of each Portfolio and 0.10% of the average
daily net assets allocated to the Service Shares of each Portfolio in excess of
$1 billion.
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 May 15, 1997.
