<PAGE>
The following is a fair and accurate English translation of a Spanish language
Prospectus Supplement to be used for Sierra Trust Funds.
By /s/ Keith B. Pipes
-----------------------------
Keith B. Pipes
Executive Vice President,
Treasurer and Secretary,
Sierra Trust Funds
SUPPLEMENT DATED MARCH 1, 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, as amended and supplemented to
date, of the Sierra Trust Funds (the "Trust") relating to the Class A 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 effective on March 1, 1996 by the following:
- -------------------------------------------------------------------------------
1. In the "Expenses - Understanding Expenses" table on pages 12 and 13, the
maximum sales charge imposed on purchases (as a % of offering price) for Class A
Shares for the Growth and Income Fund, Growth Fund, Emerging Growth Fund and
International Growth Fund is changed from 4.50% to 5.75%. The initial sales
charge is reduced for purchases of $50,000 and over, decreasing to zero for
purchases of $1,000,000 and over for each Fund.
2. The second sentence in the paragraph with the heading "EMERGING GROWTH FUND"
on page 46 is deleted and replaced with the following sentence:
The Fund normally invests primarily in Equity Securities in companies
with market capitalization of less than $1.4 billion at the time of purchase.
3. The heading on the Class A shares sales charge table on page 80 is changed to
read:
FOR CLASS A SHARES OF NON-MONEY FUNDS OTHER THAN THE SHORT TERM GLOBAL
GOVERNMENT, SHORT TERM HIGH QUALITY BOND AND THE EQUITY FUNDS
4. The following additional Class A shares sales charge table is added after the
table on page 81:
FOR CLASS A SHARES OF THE EQUITY FUNDS
<TABLE>
<CAPTION>
Dealers'
As a % of As a % of Reallowance
Offering Price Net Asset as a % of
AMOUNT OF TRANSACTION Per Share Value Offering Price
- --------------------- -------------- --------- --------------
<S> <C> <C> <C>
Less than $50,000..................................... 5.75% 6.10% 5.00%
$50,000 but less than $100,000....................... 4.75% 4.99% 4.00%
$100,000 but less than $250,000...................... 3.75% 3.90% 3.00%
$250,000 but less than $500,000...................... 2.75% 2.83% 2.25%
$500,000 but less than $1,000,000.................... 2.00% 2.04% 1.75%
$1,000,000 and over.................................. 0% 0% 0%
</TABLE>
5. The amount stated in the second paragraph of the left column on page 81 that
Sierra Services may pay investment dealers of record is changed from "up to
0.25% of the net asset value" to "up to 1.00% of the net asset value."
6. The following sentence is added before the last sentence of the first
paragraph in the left column on page 81:
<PAGE>
Sierra Services intends to reallow the full applicable sales charge
related to purchases of Class A shares of the Equity Funds to GW Securities or
the Authorized Dealer that sells Equity Fund shares for the period from March 1,
1996 through May 31, 1996.
7. The second sentence in the first paragraph and the first and second sentences
in the second paragraph in the "Exchange Privileges and Restrictions - Class A
Shares" section on page 89 are deleted and replaced with the following
sentences:
Class A Shares of a Non-Money Fund may be exchanged for Class A Shares
of any of the other Funds of the Trust, including the Money Funds or the Sierra
Prime Income Fund, ("SPIF," and the foregoing Funds together, the "Eligible
Funds") without a sales charge at purchase. If shares of the Money Funds so
acquired are subsequently exchanged again for Class A Shares of a Non-Money Fund
or SPIF, no sales charge at purchase will be assessed. The availability of the
exchange privilege with respect to shares of SPIF is subject to the availability
of shares of SPIF for exchange purposes as stated in the prospectus and
statement of additional information ("SAI") of SPIF. Also, although shares of
SPIF may be exchanged for shares of the Funds, such exchanges of SPIF shares for
shares of the Funds are permitted approximately once every calendar quarter so
long as SPIF makes a repurchase offer for its shares in such quarter and so long
as the SPIF repurchase offer is sufficiently large to include the SPIF shares
tendered for exchange. See the prospectus and SAI of SPIF for additional
information regarding the exchange privilege applicable to SPIF shares and the
availability of such exchange privilege.
Class A Shares of a Money Fund may be exchanged for Class A Shares of
the other Money Funds without a sales charge at purchase. When Class A Shares of
the Money Funds are exchanged for Class A Shares of a Non-Money Fund or SPIF,
the initial sales charge applicable to such Non-Money Fund or SPIF will be
assessed unless the Class A Shares of the Money Funds given in exchange were
acquired through a previous exchange or series of exchanges for shares of a
Non-Money Fund or SPIF.
8. The last sentence in the third paragraph in the "Exchange Privileges and
Restrictions - Class A Shares" section on page 89 is deleted and replaced with
the following sentence:
The CDSCs applicable to Class A Shares will not be assessed on a
redemption that is a part of an exchange for Class A Shares of another Eligible
Fund, except that if the shares acquired in the exchange or a series of
exchanges were then redeemed within the CDSC period applicable to the shares
redeemed initially in the exchange or series of exchanges, the CDSC would be
assessed.
PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE
<PAGE>
SUPPLEMENT DATED MARCH 1, 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, as amended and supplemented to
date, of the Sierra Trust Funds (the "Trust") relating to the Class A 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 effective on March 1, 1996 by the following:
- -------------------------------------------------------------------------------
1. In the "Expenses - Understanding Expenses" table on pages 12 and 13, the
maximum sales charge imposed on purchases (as a % of offering price) for Class A
Shares for the Growth and Income Fund, Growth Fund, Emerging Growth Fund and
International Growth Fund is changed from 4.50% to 5.75%. The initial sales
charge is reduced for purchases of $50,000 and over, decreasing to zero for
purchases of $1,000,000 and over for each Fund.
2. The second sentence in the paragraph with the heading "EMERGING GROWTH FUND"
on page 46 is deleted and replaced with the following sentence:
The Fund normally invests primarily in Equity Securities in companies
with market capitalization of less than $1.4 billion at the time of purchase.
3. The heading on the Class A shares sales charge table on page 80 is changed to
read:
FOR CLASS A SHARES OF NON-MONEY FUNDS OTHER THAN THE SHORT TERM GLOBAL
GOVERNMENT, SHORT TERM HIGH QUALITY BOND AND THE EQUITY FUNDS
4. The following additional Class A shares sales charge table is added after the
table on page 81:
FOR CLASS A SHARES OF THE EQUITY FUNDS
<TABLE>
<CAPTION>
Dealers'
As a % of As a % of Reallowance
Offering Price Net Asset as a % of
AMOUNT OF TRANSACTION Per Share Value Offering Price
- --------------------- -------------- --------- --------------
<S> <C> <C> <C>
Less than $50,000..................................... 5.75% 6.10% 5.00%
$50,000 but less than $100,000....................... 4.75% 4.99% 4.00%
$100,000 but less than $250,000...................... 3.75% 3.90% 3.00%
$250,000 but less than $500,000...................... 2.75% 2.83% 2.25%
$500,000 but less than $1,000,000.................... 2.00% 2.04% 1.75%
$1,000,000 and over.................................. 0% 0% 0%
</TABLE>
5. The amount stated in the second paragraph of the left column on page 81 that
Sierra Services may pay investment dealers of record is changed from "up to
0.25% of the net asset value" to "up to 1.00% of the net asset value."
6. The following sentence is added before the last sentence of the first
paragraph in the left column on page 81:
<PAGE>
Sierra Services intends to reallow the full applicable sales charge
related to purchases of Class A shares of the Equity Funds to GW Securities or
the Authorized Dealer that sells Equity Fund shares for the period from March 1,
1996 through May 31, 1996.
7. The second sentence in the first paragraph and the first and second sentences
in the second paragraph in the "Exchange Privileges and Restrictions - Class A
Shares" section on page 89 are deleted and replaced with the following
sentences:
Class A Shares of a Non-Money Fund may be exchanged for Class A Shares
of any of the other Funds of the Trust, including the Money Funds or the Sierra
Prime Income Fund, ("SPIF," and the foregoing Funds together, the "Eligible
Funds") without a sales charge at purchase. If shares of the Money Funds so
acquired are subsequently exchanged again for Class A Shares of a Non-Money Fund
or SPIF, no sales charge at purchase will be assessed. The availability of the
exchange privilege with respect to shares of SPIF is subject to the availability
of shares of SPIF for exchange purposes as stated in the prospectus and
statement of additional information ("SAI") of SPIF. Also, although shares of
SPIF may be exchanged for shares of the Funds, such exchanges of SPIF shares for
shares of the Funds are permitted approximately once every calendar quarter so
long as SPIF makes a repurchase offer for its shares in such quarter and so long
as the SPIF repurchase offer is sufficiently large to include the SPIF shares
tendered for exchange. See the prospectus and SAI of SPIF for additional
information regarding the exchange privilege applicable to SPIF shares and the
availability of such exchange privilege.
Class A Shares of a Money Fund may be exchanged for Class A Shares of
the other Money Funds without a sales charge at purchase. When Class A Shares of
the Money Funds are exchanged for Class A Shares of a Non-Money Fund or SPIF,
the initial sales charge applicable to such Non-Money Fund or SPIF will be
assessed unless the Class A Shares of the Money Funds given in exchange were
acquired through a previous exchange or series of exchanges for shares of a
Non-Money Fund or SPIF.
8. The last sentence in the third paragraph in the "Exchange Privileges and
Restrictions - Class A Shares" section on page 89 is deleted and replaced with
the following sentence:
The CDSCs applicable to Class A Shares will not be assessed on a
redemption that is a part of an exchange for Class A Shares of another Eligible
Fund, except that if the shares acquired in the exchange or a series of
exchanges were then redeemed within the CDSC period applicable to the shares
redeemed initially in the exchange or series of exchanges, the CDSC would be
assessed.
PLEASE RETAIN THIS SUPPLEMENT
FOR FUTURE REFERENCE
<PAGE>
SUPPLEMENT DATED MARCH 1, 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, as amended and supplemented to
date, of the Sierra Trust Funds (the "Trust") relating to the Class A 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 effective on March 1, 1996 by the following:
- -------------------------------------------------------------------------------
1. In the "SUMMARY OF SIERRA TRUST FUNDS EXPENSES" table on pages 5 and 6, the
maximum sales charge imposed on purchases (as a percentage of offering price)
for Class A Shares for the Growth and Income Fund, Growth Fund, Emerging Growth
Fund and International Growth Fund is changed from 4.50% to 5.75%. The initial
sales charge is reduced for purchases of $50,000 and over, decreasing to zero
for purchases of $1,000,000 and over for each Fund.
2. The second sentence in the paragraph with the heading "EMERGING GROWTH FUND"
on page 26 is deleted and replaced with the following sentence:
The Fund normally invests primarily in equity securities in companies
with market capitalization of less than $1.4 billion at the time of purchase.
3. The heading on the first Class A shares sales charge table on page 52 is
changed to read:
FOR CLASS A SHARES OF NON-MONEY FUNDS OTHER THAN THE SHORT TERM GLOBAL
GOVERNMENT, SHORT TERM HIGH QUALITY BOND AND THE EQUITY FUNDS
4. The following additional Class A shares sales charge table is added after the
second table on page 52:
FOR CLASS A SHARES OF THE EQUITY FUNDS
<TABLE>
<CAPTION>
Dealers'
As a % of As a % of Reallowance
Offering Price Net Asset as a % of
AMOUNT OF TRANSACTION Per Share Value Offering Price
- --------------------- -------------- --------- --------------
<S> <C> <C> <C>
Less than $50,000..................................... 5.75% 6.10% 5.00%
$50,000 but less than $100,000....................... 4.75% 4.99% 4.00%
$100,000 but less than $250,000...................... 3.75% 3.90% 3.00%
$250,000 but less than $500,000...................... 2.75% 2.83% 2.25%
$500,000 but less than $1,000,000.................... 2.00% 2.04% 1.75%
$1,000,000 and over.................................. 0% 0% 0%+
</TABLE>
5. The amount stated in the footnote to the two tables on page 52 that Sierra
Services may pay investment dealers of record is changed from "up to 0.25% of
the net asset value" to "up to 1.00% of the net asset value."
6. The following sentence is added before the last sentence of the last
paragraph on page 52:
<PAGE>
Sierra Services intends to reallow the full applicable sales charge
related to purchases of Class A shares of the Equity Funds to GW Securities or
the Authorized Dealer that sells Equity Fund shares for the period from March 1,
1996 through May 31, 1996.
7. The following sentence is added after the second sentence in the first
paragraph in the "Exchange Privileges and Restrictions" section on page 57:
You may exchange at NAV shares of any class of a Fund for shares of the
same class of another Fund and for shares of the same class of the Sierra Prime
Income Fund ("SPIF," and the foregoing Funds together, the "Eligible Funds").
The availability of the exchange privilege with respect to shares of SPIF is
subject to the availability of shares of SPIF for exchange purposes as stated in
the prospectus and statement of additional information ("SAI") of SPIF. Also,
although shares of SPIF may be exchanged for shares of the Fund, such exchanges
of SPIF shares for shares of the Funds are permitted approximately once every
calendar quarter so long as SPIF makes a repurchase offer for its shares in such
quarter and so long as the SPIF repurchase offer is sufficiently large to
include SPIF shares tendered for exchange. See the prospectus and SAI of SPIF
for additional information regarding the exchange privilege applicable to SPIF
shares and the availability of such exchange privilege.
8. The first sentence in the first paragraph in the "Exchange Privileges and
Restrictions - Class A Shares" section on page 57 is deleted and replaced with
the following sentences:
You may exchange at NAV Class A Shares of any Eligible Fund, where
applicable sales charges have been paid, for Class A Shares of any Eligible
Fund. If shares of the Money Funds so acquired are subsequently exchanged again
for Class A Shares of a Non-Money Fund or SPIF, no sales charge at purchase will
be assessed. Class A Shares of a Money Fund may be exchanged for Class A Shares
of the other Money Funds without a sales charge at purchase. When Class A Shares
of the Money Funds are exchanged for Class A Shares of a Non-Money Fund or SPIF,
the initial sales charge applicable to such Non-Money Fund or SPIF will be
assessed unless the Class A Shares of the Money Funds given in exchange were
acquired through a previous exchange or series of exchanges for shares of a
Non-Money Fund or SPIF. No initial sales charge will be assessed, however, and
any applicable CDSC will not be imposed when Class A Shares of a Money Fund are
exchanged for Class A Shares of a Non-Money Fund where the purchase of shares of
the Non-Money Fund through the exchange is of any of the types described in
"Waivers of Class A Initial Sales Charges," or "Waivers of the Class A Shares
CDSCs."
9. The last sentence in the second paragraph in the "Exchange Privileges and
Restrictions - Class A Shares" section on page 57 is deleted and replaced with
the following sentence:
The CDSCs applicable to Class A Shares will not be assessed on a
redemption that is a part of an exchange for Class A Shares of another Eligible
Fund, except that if the shares acquired in the exchange or a series of
exchanges were then redeemed within the CDSC period applicable to the shares
redeemed initially in the exchange or series of exchanges, the CDSC would be
assessed.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
SUPPLEMENT DATED MARCH 1, 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, as amended and supplemented to
date, of the Sierra Trust Funds (the "Trust") relating to the Class A 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 effective on March 1, 1996 by the following:
- -------------------------------------------------------------------------------
1. In the "SUMMARY OF SIERRA TRUST FUNDS EXPENSES" table on pages 5 and 6, the
maximum sales charge imposed on purchases (as a percentage of offering price)
for Class A Shares for the Growth and Income Fund, Growth Fund, Emerging Growth
Fund and International Growth Fund is changed from 4.50% to 5.75%. The initial
sales charge is reduced for purchases of $50,000 and over, decreasing to zero
for purchases of $1,000,000 and over for each Fund.
2. The second sentence in the paragraph with the heading "EMERGING GROWTH FUND"
on page 26 is deleted and replaced with the following sentence:
The Fund normally invests primarily in equity securities in companies
with market capitalization of less than $1.4 billion at the time of purchase.
3. The heading on the first Class A shares sales charge table on page 52 is
changed to read:
FOR CLASS A SHARES OF NON-MONEY FUNDS OTHER THAN
THE SHORT TERM GLOBAL GOVERNMENT,
SHORT TERM HIGH QUALITY BOND AND THE EQUITY FUNDS
4. The following additional Class A shares sales charge table is added after the
second table on page 52:
FOR CLASS A SHARES OF THE EQUITY FUNDS
<TABLE>
<CAPTION>
Dealers'
As a % of As a % of Reallowance
Offering Price Net Asset as a % of
AMOUNT OF TRANSACTION Per Share Value Offering Price
- --------------------- -------------- -------- --------------
<S> <C> <C> <C>
Less than $50,000..................................... 5.75% 6.10% 5.00%
$50,000 but less than $100,000....................... 4.75% 4.99% 4.00%
$100,000 but less than $250,000...................... 3.75% 3.90% 3.00%
$250,000 but less than $500,000...................... 2.75% 2.83% 2.25%
$500,000 but less than $1,000,000.................... 2.00% 2.04% 1.75%
$1,000,000 and over.................................. 0% 0% 0%+
</TABLE>
5. The following sentence is added before the last sentence of the last
paragraph on page 52:
Sierra Services intends to reallow the full applicable sales charge
related to purchases of Class A shares of the Equity Funds to the Authorized
Dealer that sells Equity Fund shares for the period from March 1, 1996 through
May 31, 1996.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
SUPPLEMENT DATED MARCH 1, 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, as amended and supplemented to
date, of the Sierra Trust Funds (the "Trust") relating to the Class A 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 effective on March 1, 1996 by the following:
- -------------------------------------------------------------------------------
1. In the "SUMMARY OF SIERRA TRUST FUNDS EXPENSES" table on pages 5 and 6, the
maximum sales charge imposed on purchases (as a percentage of offering price)
for Class A Shares for the Growth and Income Fund, Growth Fund, Emerging Growth
Fund and International Growth Fund is changed from 4.50% to 5.75%. The initial
sales charge is reduced for purchases of $50,000 and over, decreasing to zero
for purchases of $1,000,000 and over for each Fund.
2. The second sentence in the paragraph with the heading "EMERGING GROWTH FUND"
on page 26 is deleted and replaced with the following sentence:
The Fund normally invests primarily in equity securities in companies
with market capitalization of less than $1.4 billion at the time of purchase.
3. The heading on the first Class A shares sales charge table on page 52 is
changed to read:
FOR CLASS A SHARES OF NON-MONEY FUNDS OTHER THAN THE SHORT TERM GLOBAL
GOVERNMENT, SHORT TERM HIGH QUALITY BOND AND THE EQUITY FUNDS
4. The following additional Class A shares sales charge table is added after the
second table on page 52:
FOR CLASS A SHARES OF THE EQUITY FUNDS
<TABLE>
<CAPTION>
Dealers'
As a % of As a % of Reallowance
Offering Price Net Asset as a % of
AMOUNT OF TRANSACTION Per Share Value Offering Price
- --------------------- -------------- --------- --------------
<S> <C> <C> <C>
Less than $50,000..................................... 5.75% 6.10% 5.00%
$50,000 but less than $100,000....................... 4.75% 4.99% 4.00%
$100,000 but less than $250,000...................... 3.75% 3.90% 3.00%
$250,000 but less than $500,000...................... 2.75% 2.83% 2.25%
$500,000 but less than $1,000,000.................... 2.00% 2.04% 1.75%
$1,000,000 and over.................................. 0% 0% 0%+
</TABLE>
5. The following sentence is added before the last sentence of the first
paragraph on page 53:
Sierra Services intends to reallow the full applicable sales charge
related to purchases of Class A shares of the Equity Funds to the Authorized
Dealer that sells Equity Fund shares for the period from March 1, 1996 through
May 31, 1996.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
SUPPLEMENT DATED MARCH 1, 1996
TO PROSPECTUS DATED MARCH 20, 1995
OF
SIERRA TRUST FUNDS
9301 CORBIN AVENUE, SUITE 333
P.O. BOX 1160
NORTHRIDGE, CALIFORNIA 91328-1160
TARGET MATURITY 2002 FUND
The prospectus dated March 20, 1995 (the "Prospectus"), as amended and
supplemented to date, of the Sierra Trust Funds (the "Trust") relating to the
shares of the TARGET MATURITY 2002 FUND (the "Fund") of the Trust is hereby
amended and supplemented effective March 1, 1996 by the following:
- -------------------------------------------------------------------------------
1. The footnote under the table in the "PURCHASE OF CLASS A SHARES" section on
page 12, as amended to date, is deleted and replaced with the following
footnote:
* Investors do not pay a sales charge at time of purchase on purchases
of $1 million or more; however, Sierra Services may pay the investment dealers
of record on purchases of Class A Shares of $1 million or more a fee of up to
1.00% of the NAV of such purchases.
2. The first two paragraphs in the "EXCHANGE PRIVILEGES AND RESTRICTIONS"
section on page 17 are deleted and replaced with the following three paragraphs:
The Class A shares of the Fund may be exchanged for Class A shares of
any of the other Funds of the Trust, including the Money Funds or the Sierra
Prime Income Fund ("SPIF," and the foregoing funds together, the "Eligible
Funds"), but if the shares acquired in the exchange are subject to a higher
sales load, a sales load may be charged in an amount up to the difference
between the sales load amount that was previously paid to purchase the Class A
shares that are being exchanged and the initial sales load applicable to the
Class A shares of the Eligible Fund that are acquired in the exchange. If Class
A shares of the Money Funds, which do not have a sales load at purchase, are
acquired in such exchange no sales load is charged, but if such Class A shares
of a Money Fund are subsequently exchanged again for Class A shares of SPIF or
any of the non-Money Funds of the Trust other than the Fund, a sales load may be
charged in an amount up to the difference between the sales load amount that was
previously paid to purchase the Class A shares that are being exchanged and the
initial sales load applicable to the Class A shares of the Eligible Funds that
are acquired in the exchange for the Money Fund Class A shares. Class A Shares
of a Money Fund may be exchanged for Class A Shares of the other Money Funds
without a sales charge at purchase. If the initial Class A shares of the
Eligible Fund purchased by the investor was not subject to any sales load on
such shares, then no sales load for Class A shares will be imposed on any
subsequent exchanges involving such shares. No initial sales charge will be
assessed, however, and any applicable CDSC will not be imposed when Class A
Shares of any of the Eligible Funds, including a Money Fund, are exchanged for
Class A Shares of a Non-Money Fund where the purchase of Class A shares of the
Non-Money Fund through the exchange is of any of the types described in "WAIVERS
OF CLASS A INITIAL SALES CHARGES."
The availability of the exchange privilege with respect to shares of
SPIF is subject to the availability of shares of SPIF for exchange purposes as
stated in the prospectus and statement of additional information ("SAI") of
SPIF. Also, although shares of SPIF may be exchanged for shares of the Fund,
such exchanges of SPIF shares for shares of the Fund are permitted approximately
once every calendar quarter so long as SPIF makes a repurchase offer for its
shares in such quarter and so long as SPIF repurchase offer is sufficiently
large to include SPIF shares tendered for exchange. See the prospectus and SAI
of SPIF for additional information regarding the exchange privilege applicable
to SPIF shares and the availability of such exchange privilege.
Certain Class A Shares may be subject to a CDSC for redemptions within
one or two years of purchase as described in the "APPLICATION OF CLASS A SHARES
CDSC" section. The CDSC applicable to Class A Shares will not be assessed on a
redemption that is a part of an exchange for Class A Shares of another Eligible
Fund, except that if the shares acquired in the exchange or a series of
exchanges were then redeemed within the CDSC period applicable to the shares
redeemed initially in the exchange or series of exchanges, the CDSC would be
assessed.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
