<PAGE>
SUPPLEMENT DATED APRIL 8, 1996
TO PROSPECTUS DATED OCTOBER 31, 1995
OF
SIERRA TRUST FUNDS
9301 CORBIN AVENUE, SUITE 333
P.O. BOX 1160
NORTHRIDGE, CALIFORNIA 91328-1160
The prospectus dated October 31, 1995 of the Sierra Trust Funds (the "Trust")
relating to the Class A Shares and Class B Shares of the GLOBAL MONEY, U.S.
GOVERNMENT MONEY, CALIFORNIA MONEY, SHORT TERM HIGH QUALITY BOND, SHORT TERM
GLOBAL GOVERNMENT, U.S. GOVERNMENT, CORPORATE INCOME, CALIFORNIA MUNICIPAL,
FLORIDA INSURED MUNICIPAL, CALIFORNIA INSURED INTERMEDIATE MUNICIPAL, NATIONAL
MUNICIPAL, GROWTH AND INCOME, GROWTH, EMERGING GROWTH AND INTERNATIONAL GROWTH
FUNDS of the Trust is hereby amended and supplemented by the following:
Pursuant to the terms of an Investment Sub-Advisory Agreement (the "J.P. Morgan
Sub-Advisory Agreement") among the Trust, Sierra Investment Advisors
Corporation, the Trust's investment advisor (the "Advisor"), and J.P. Morgan
Investment Management Inc. ("J.P. Morgan"), the J.P. Morgan Sub-Advisory
Agreement and the role of J.P. Morgan as investment sub-advisor to the
INTERNATIONAL GROWTH FUND (the "Fund") will be terminated as of April 8, 1996.
The Trust and the Advisor will enter into an Investment Sub-Advisory Agreement
(the "Warburg Sub-Advisory Agreement"), subject to shareholder approval, with
Warburg, Pincus Counsellors, Inc. ("Warburg"), pursuant to which Warburg will
act as investment sub-advisor to the Fund, as of April 8, 1996. Besides the
change in the investment sub-advisor and new sub-advisory fees, there will be no
material differences between the J.P. Morgan Sub-Advisory Agreement and the
Warburg Sub-Advisory Agreement. No material changes in the investment objective
or policies of the Fund are anticipated. At a special meeting of shareholders
called by the Board of Trustees for June 21, 1996, the shareholders of the Fund
will vote concerning approval of the Warburg Sub-Advisory Agreement.
The "INVESTMENT MANAGEMENT" paragraph under the heading "INTERNATIONAL GROWTH
FUND" in the "THE FUNDS AT A GLANCE - THE EQUITY FUNDS" section on page 11 is
amended and restated as follows:
Warburg, Pincus Counsellors, Inc. ("Warburg") is the investment
Sub-Advisor of the Fund. Warburg is a professional investment
counselling firm which provides investment services to
investment endowment funds, foundations and other institutions
and individuals. As of February 29, 1996, Warburg managed
approximately $13.5 billion of assets, including approximately
$7.5 billion of assets of twenty-six mutual funds.
The last paragraph under the heading "INTERNATIONAL GROWTH FUND" in the "THE
FUNDS' INVESTMENTS AND RISK CONSIDERATIONS - INVESTMENT PRINCIPLES AND RISK
CONSIDERATIONS - THE EQUITY FUNDS" section on page 48 is deleted and replaced
with the following:
The investment decisions of the Fund are made by a committee.
Richard H. King is primarily responsible for making
recommendations to the committee. Richard King, Senior Managing
Director, joined the firm to found the department and has 28
years of investment experience. Prior to joining Warburg, Mr.
King was chief investment officer and a director of Fiduciary
Trust Company International S.A. in London beginning in 1984.
The paragraph under the heading "ABOUT SIERRA TRUST FUNDS" in the "YOUR ACCOUNT"
section on page 72 is amended and restated by adding the following to the end of
the paragraph:
- Warburg, Pincus Counsellors, Inc.
The "SUB-ADVISORS" section under the headings "THE FUNDS IN DETAIL - SIERRA
ADVISORS, ITS AFFILIATES AND SERVICE PROVIDERS" on page 98 is amended by
inserting the following paragraph as the last paragraph:
WARBURG is located at 466 Lexington Avenue, New York, New York
10017-3147. Incorporated in 1970, Warburg is a wholly-owned
subsidiary of Warburg, Pincus Counsellors G.P. ("Counsellors
G.P."), a New York general partnership. E.M. Warburg, Pincus &
Co., Inc. ("EMW") controls Warburg through its ownership of a
class of voting preferred stock of Warburg. Lionel I. Pincus may
be deemed a controlling person of EMW. Counsellors G.P. has no
business other than being a holding company of Warburg and its
subsidiaries.
The portion of the table that sets forth the sub-advisory fees paid to the
investment sub-advisor of the International Growth Fund, located under the
heading "MANAGEMENT FEE" in "BREAKDOWN OF FUND EXPENSES" section on page 101,
is deleted and replaced by the following:
As investment sub-advisor of the International Growth Fund,
Warburg is paid the following monthly fee under the Sub-Advisory
Agreement for the Fund at an annual rate of 0.50% of the average
net assets of the Fund.
PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE
<PAGE>
SUPPLEMENT DATED APRIL 8, 1996
TO PROSPECTUS DATED OCTOBER 31, 1995
OF
SIERRA TRUST FUNDS
9301 CORBIN AVENUE, SUITE 333
P.O. BOX 1160
NORTHRIDGE, CALIFORNIA 91328-1160
The prospectus dated October 31, 1995 of the Sierra Trust Funds (the "Trust")
relating to the Class A Shares and Class S Shares of the GLOBAL MONEY, U.S.
GOVERNMENT MONEY, CALIFORNIA MONEY, SHORT TERM HIGH QUALITY BOND, SHORT TERM
GLOBAL GOVERNMENT, U.S. GOVERNMENT, CORPORATE INCOME, CALIFORNIA MUNICIPAL,
FLORIDA INSURED MUNICIPAL, CALIFORNIA INSURED INTERMEDIATE MUNICIPAL, NATIONAL
MUNICIPAL, GROWTH AND INCOME, GROWTH, EMERGING GROWTH AND INTERNATIONAL GROWTH
FUNDS of the Trust is hereby amended and supplemented by the following:
Pursuant to the terms of an Investment Sub-Advisory Agreement (the "J.P. Morgan
Sub-Advisory Agreement") among the Trust, Sierra Investment Advisors
Corporation, the Trust's investment advisor (the "Advisor"), and J.P. Morgan
Investment Management Inc. ("J.P. Morgan"), the J.P. Morgan Sub-Advisory
Agreement and the role of J.P. Morgan as investment sub-advisor to the
INTERNATIONAL GROWTH FUND (the "Fund") will be terminated as of April 8, 1996.
The Trust and the Advisor will enter into an Investment Sub-Advisory Agreement
(the "Warburg Sub-Advisory Agreement"), subject to shareholder approval, with
Warburg, Pincus Counsellors, Inc. ("Warburg"), pursuant to which Warburg will
act as investment sub-advisor to the Fund, as of April 8, 1996. Besides the
change in the investment sub-advisor and new sub-advisory fees, there will be no
material differences between the J.P. Morgan Sub-Advisory Agreement and the
Warburg Sub-Advisory Agreement. No material changes in the investment objective
or policies of the Fund are anticipated. At a special meeting of shareholders
called by the Board of Trustees for June 21, 1996, the shareholders of the Fund
will vote concerning approval of the Warburg Sub-Advisory Agreement.
The "INVESTMENT MANAGEMENT" paragraph under the headings "THE SIERRA TRUST FUNDS
FAMILY AT A GLANCE - THE EQUITY FUNDS - INTERNATIONAL GROWTH FUND" on page 4 is
amended and restated as follows:
Warburg, Pincus Counsellors, Inc. ("Warburg") is the
investment Sub-Advisor of the Fund.
The last paragraph under the heading "INTERNATIONAL GROWTH FUND" in the "THE
FUNDS' INVESTMENTS AND RISK CONSIDERATIONS - INVESTMENT PRINCIPLES AND RISK
CONSIDERATIONS - THE EQUITY FUNDS" section on page 28 is deleted and replaced
with the following:
The investment decisions of the Fund are made by a committee.
Richard H. King is primarily responsible for making
recommendations to the committee. Richard King, Senior Managing
Director, joined the firm to found the department and has 28
years of investment experience. Prior to joining Warburg, Mr.
King was chief investment officer and a director at Fiduciary
Trust Company International S.A. in London beginning in 1984.
The "SUB-ADVISORS" section under the headings "THE FUNDS IN DETAIL - SIERRA
ADVISORS, ITS AFFILIATES AND SERVICE PROVIDERS" on page 63 is amended by
inserting the following paragraph as the last paragraph:
WARBURG is located at 466 Lexington Avenue, New York, New York
10017-3147. Warburg is a professional investment counselling
firm which provides investment services to investment endowment
funds, foundations and other institutions and individuals. As of
February 29, 1996, Warburg managed approximately $13.5 billion
of assets, including approximately $7.5 billion of assets of
twenty-six mutual funds. Incorporated in 1970, Warburg is a
wholly-owned subsidiary of Warburg, Pincus Counsellors G.P.
("Counsellors G.P."), a New York general partnership. E.M.
Warburg, Pincus & Co., Inc. ("EMW") controls Warburg through its
ownership of a class of voting preferred stock of Warburg.
Lionel I. Pincus may be deemed a controlling person of EMW.
Counsellors G.P. has no business other than being a holding
company of Warburg and its subsidiaries.
The portion of the table that sets forth the sub-advisory fees paid to the
investment sub-advisor of the International Growth Fund, located under the
heading "MANAGEMENT FEE" in "BREAKDOWN OF FUND EXPENSES" section on page 67, is
deleted and replaced by the following:
As investment sub-advisor of the International Growth Fund,
Warburg is paid the following monthly fee under the Sub-Advisory
Agreement for the Fund at an annual rate of 0.50% of the average
net assets of the Fund.
PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE
<PAGE>
SUPPLEMENT DATED APRIL 8, 1996
TO PROSPECTUS DATED OCTOBER 31, 1995
OF
SIERRA TRUST FUNDS
P.O. BOX 9702
PROVIDENCE, RHODE ISLAND 02940-9702
The prospectus dated October 31, 1995 of the Sierra Trust Funds (the "Trust")
relating to the Class A Shares and Class B Shares of the GLOBAL MONEY, U.S.
GOVERNMENT MONEY, CALIFORNIA MONEY, SHORT TERM HIGH QUALITY BOND, SHORT TERM
GLOBAL GOVERNMENT, U.S. GOVERNMENT, CORPORATE INCOME, CALIFORNIA MUNICIPAL,
FLORIDA INSURED MUNICIPAL, CALIFORNIA INSURED INTERMEDIATE MUNICIPAL, NATIONAL
MUNICIPAL, GROWTH AND INCOME, GROWTH, EMERGING GROWTH AND INTERNATIONAL GROWTH
FUNDS of the Trust is hereby amended and supplemented by the following:
Pursuant to the terms of an Investment Sub-Advisory Agreement (the "J.P. Morgan
Sub-Advisory Agreement") among the Trust, Sierra Investment Advisors
Corporation, the Trust's investment advisor (the "Advisor"), and J.P. Morgan
Investment Management Inc. ("J.P. Morgan"), the J.P. Morgan Sub-Advisory
Agreement and the role of J.P. Morgan as investment sub-advisor to the
INTERNATIONAL GROWTH FUND (the "Fund") will be terminated as of April 8, 1996.
The Trust and the Advisor will enter into an Investment Sub-Advisory Agreement
(the "Warburg Sub-Advisory Agreement"), subject to shareholder approval, with
Warburg, Pincus Counsellors, Inc. ("Warburg"), pursuant to which Warburg will
act as investment sub-advisor to the Fund, as of April 8, 1996. Besides the
change in the investment sub-advisor and new sub-advisory fees, there will be no
material differences between the J.P. Morgan Sub-Advisory Agreement and the
Warburg Sub-Advisory Agreement. No material changes in the investment objective
or policies of the Fund are anticipated. At a special meeting of shareholders
called by the Board of Trustees for June 21, 1996, the shareholders of the Fund
will vote concerning approval of the Warburg Sub-Advisory Agreement.
The "INVESTMENT MANAGEMENT" paragraph under the heading "INTERNATIONAL GROWTH
FUND" in the "THE SIERRA TRUST FUNDS FAMILY AT A GLANCE - THE EQUITY FUNDS"
section on page 4 is amended and restated as follows:
Warburg, Pincus Counsellors, Inc. ("Warburg") is the investment
Sub-Advisor of the Fund.
The last paragraph under the heading "INTERNATIONAL GROWTH FUND" in the "THE
FUNDS' INVESTMENTS AND RISK CONSIDERATIONS - INVESTMENT PRINCIPLES AND RISK
CONSIDERATIONS - THE EQUITY FUNDS" section on page 27 is deleted and replaced
with the following:
The investment decisions of the Fund are made by a committee.
Richard H. King is primarily responsible for making
recommendations to the committee. Richard King, Senior Managing
Director, joined the firm to found the department and has 28
years of investment experience. Prior to joining Warburg, Mr.
King was chief investment officer and a director at Fiduciary
Trust Company International S.A. in London beginning in 1984.
The "SUB-ADVISORS" section under the headings "THE FUNDS IN DETAIL - SIERRA
ADVISORS, ITS AFFILIATES AND SERVICE PROVIDERS" on page 63 is amended by
inserting the following paragraph as the last paragraph:
WARBURG is located at 466 Lexington Avenue, New York, New York
10017-3147. Warburg is a professional investment counselling
firm which provides investment services to investment endowment
funds, foundations and other institutions and individuals. As of
February 29, 1996, Warburg managed approximately $13.5 billion
of assets, including approximately $7.5 billion of assets of
twenty-six mutual funds. Incorporated in 1970, Warburg is a
wholly-owned subsidiary of Warburg, Pincus Counsellors G.P.
("Counsellors G.P."), a New York general partnership. E.M.
Warburg, Pincus & Co., Inc. ("EMW") controls Warburg through its
ownership of a class of voting preferred stock of Warburg.
Lionel I. Pincus may be deemed a controlling person of EMW.
Counsellors G.P. has no business other than being a holding
company of Warburg and its subsidiaries.
The portion of the table that sets forth the sub-advisory fees paid to the
investment sub-advisor of the International Growth Fund, located under the
heading "MANAGEMENT FEE" in "BREAKDOWN OF FUND EXPENSES" section on page 67, is
deleted and replaced by the following:
As investment sub-advisor of the International Growth Fund,
Warburg is paid the following monthly fee under the Sub-Advisory
Agreement for the Fund at an annual rate of 0.50% of the average
net assets of the Fund.
PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE
<PAGE>
SUPPLEMENT DATED APRIL 8, 1996
TO PROSPECTUS DATED OCTOBER 31, 1995
OF
SIERRA TRUST FUNDS
P.O. BOX 9702
PROVIDENCE, RHODE ISLAND 02940-9702
The prospectus dated October 31, 1995 of the Sierra Trust Funds (the "Trust")
relating to the Class A Shares and Class S Shares of the GLOBAL MONEY, U.S.
GOVERNMENT MONEY, CALIFORNIA MONEY, SHORT TERM HIGH QUALITY BOND, SHORT TERM
GLOBAL GOVERNMENT, U.S. GOVERNMENT, CORPORATE INCOME, CALIFORNIA MUNICIPAL,
FLORIDA INSURED MUNICIPAL, CALIFORNIA INSURED INTERMEDIATE MUNICIPAL, NATIONAL
MUNICIPAL, GROWTH AND INCOME, GROWTH, EMERGING GROWTH AND INTERNATIONAL GROWTH
FUNDS of the Trust is hereby amended and supplemented by the following:
Pursuant to the terms of an Investment Sub-Advisory Agreement (the "J.P. Morgan
Sub-Advisory Agreement") among the Trust, Sierra Investment Advisors
Corporation, the Trust's investment advisor (the "Advisor"), and J.P. Morgan
Investment Management Inc. ("J.P. Morgan"), the J.P. Morgan Sub-Advisory
Agreement and the role of J.P. Morgan as investment sub-advisor to the
INTERNATIONAL GROWTH FUND (the "Fund") will be terminated as of April 8, 1996.
The Trust and the Advisor will enter into an Investment Sub-Advisory Agreement
(the "Warburg Sub-Advisory Agreement"), subject to shareholder approval, with
Warburg, Pincus Counsellors, Inc. ("Warburg"), pursuant to which Warburg will
act as investment sub-advisor to the Fund, as of April 8, 1996. Besides the
change in the investment sub-advisor and new sub-advisory fees, there will be no
material differences between the J.P. Morgan Sub-Advisory Agreement and the
Warburg Sub-Advisory Agreement. No material changes in the investment objective
or policies of the Fund are anticipated. At a special meeting of shareholders
called by the Board of Trustees for June 21, 1996, the shareholders of the Fund
will vote concerning approval of the Warburg Sub-Advisory Agreement.
The "INVESTMENT MANAGEMENT" paragraph under the heading "INTERNATIONAL GROWTH
FUND" in the "THE SIERRA TRUST FUNDS FAMILY AT A GLANCE - THE EQUITY FUNDS"
section on page 4 is amended and restated as follows:
Warburg, Pincus Counsellors, Inc. ("Warburg") is the investment
Sub-Advisor of the Fund.
The last paragraph under the heading "INTERNATIONAL GROWTH FUND" in the "THE
FUNDS' INVESTMENTS AND RISK CONSIDERATIONS - INVESTMENT PRINCIPLES AND RISK
CONSIDERATIONS - THE EQUITY FUNDS" on page 28 is deleted and replaced with the
following:
The investment decisions of the Fund are made by a committee.
Richard H. King is primarily responsible for making
recommendations to the committee. Richard King, Senior Managing
Director, joined the firm to found the department and has 28
years of investment experience. Prior to joining Warburg, Mr.
King was chief investment officer and a director at Fiduciary
Trust Company International S.A. in London beginning in 1984.
The "Sub-Advisors" section under the headings "THE FUNDS IN DETAIL - SIERRA
ADVISORS, ITS AFFILIATES AND SERVICE PROVIDERS" on page 64 is amended by
inserting the following paragraph as the last paragraph:
WARBURG is located at 466 Lexington Avenue, New York, New York
10017-3147. Warburg is a professional investment counselling
firm which provides investment services to investment endowment
funds, foundations and other institutions and individuals. As of
February 29, 1996, Warburg managed approximately $13.5 billion
of assets, including approximately $7.5 billion of assets of
twenty-six mutual funds. Incorporated in 1970, Warburg is a
wholly-owned subsidiary of Warburg, Pincus Counsellors G.P.
("Counsellors G.P."), a New York general partnership. E.M.
Warburg, Pincus & Co., Inc. ("EMW") controls Warburg through its
ownership of a class of voting preferred stock of Warburg.
Lionel I. Pincus may be deemed a controlling person of EMW.
Counsellors G.P. has no business other than being a holding
company of Warburg and its subsidiaries.
The portion of the table that sets forth the sub-advisory fees paid to the
investment sub-advisor of the International Growth Fund, located under the
heading "MANAGEMENT FEE" in "BREAKDOWN OF FUND EXPENSES" section on page 67, is
deleted and replaced by the following:
As investment sub-advisor of the International Growth Fund,
Warburg is paid the following monthly fees under the
Sub-Advisory Agreement for the Fund at an annual rate of 0.50%
of the average net assets of the Fund.
PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE
