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>
<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
<PAGE>
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.
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 October 2, 1997.
