<PAGE> 1
SUPPLEMENT DATED SEPTEMBER 23, 1996
TO PROSPECTUS DATED OCTOBER 31, 1995
OF
SIERRA TRUST FUNDS
P.O. BOX 5118
WESTBOROUGH, MASSACHUSETTS 01581-5118
The Prospectus, dated October 31, 1995, as supplemented to date, for 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 Sierra Trust Funds (the "Trust") is amended and supplemented as follows:
In the section "THE FUNDS IN DETAIL -- SIERRA ADVISORS, ITS AFFILIATES AND
SERVICE PROVIDERS -- SUB-ADVISORS" under the heading "VAN KAMPEN" on page 98,
add the following two paragraphs after the first paragraph:
On June 24, 1996, VK/AC Holding, Inc. announced it had entered into an
Agreement and Plan of Merger among Morgan Stanley Group Inc., MSAM
Holdings II, Inc. and MSAM Acquisition Inc., pursuant to which MSAM
Acquisition Inc. will be merged with and into VK/AC Holding, Inc. and
VK/AC Holding, Inc. will be the surviving corporation. The proposed
transaction may be deemed to cause an assignment, within the meaning
of the Investment Company Act of 1940 and the Investment Advisers Act
of 1940, of the investment sub-advisory agreement among Van Kampen,
Sierra Advisors and the Trust. Accordingly, the completion of the
transaction is contingent upon, among other things and subject to
certain exceptions, the approval of both the Board of Trustees of the
Trust and the shareholders of the Fund of a new investment
sub-advisory agreement among the Trust, Sierra Advisors and Van
Kampen. The Board of Trustees has approved the new investment
sub-advisory agreement and has called a special meeting of
shareholders to obtain shareholder approval of the agreement.
Investment sub-advisory fees under the new investment sub-advisory
agreement to be voted on at such meeting will be in the same amount as
those paid under the current sub-advisory agreement among the Trust,
Sierra Advisors and Van Kampen.
MSAM Acquisition Inc. is a wholly-owned subsidiary of MSAM Holdings
II, Inc. which, in turn, is a wholly-owned subsidiary of Morgan
Stanley Group Inc. Subject to a number of conditions being met, it is
currently anticipated that a closing will occur on or about October
31, 1996. Thereafter, VK/AC Holding, Inc. and its affiliated entities
shall be part of Morgan Stanley Group Inc.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 2
SUPPLEMENT DATED SEPTEMBER 23, 1996
TO PROSPECTUS DATED OCTOBER 31, 1995
OF
SIERRA TRUST FUNDS
P.O. BOX 5118
WESTBOROUGH, MASSACHUSETTS 01581-5118
The Prospectus, dated October 31, 1995, as supplemented to date, for 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 Sierra Trust Funds (the "Trust") is amended and supplemented as follows:
In the section "THE FUNDS IN DETAIL -- SIERRA ADVISORS, ITS AFFILIATES AND
SERVICE PROVIDERS -- SUB-ADVISORS" under the heading "VAN KAMPEN" on page 63,
add the following two paragraphs after the first paragraph:
On June 24, 1996, VK/AC Holding, Inc. announced it had entered into an
Agreement and Plan of Merger among Morgan Stanley Group Inc., MSAM
Holdings II, Inc. and MSAM Acquisition Inc., pursuant to which MSAM
Acquisition Inc. will be merged with and into VK/AC Holding, Inc. and
VK/AC Holding, Inc. will be the surviving corporation. The proposed
transaction may be deemed to cause an assignment, within the meaning
of the Investment Company Act of 1940 and the Investment Advisers Act
of 1940, of the investment sub-advisory agreement among Van Kampen,
Sierra Advisors and the Trust. Accordingly, the completion of the
transaction is contingent upon, among other things and subject to
certain exceptions, the approval of both the Board of Trustees of the
Trust and the shareholders of the Fund of a new investment
sub-advisory agreement among the Trust, Sierra Advisors and Van
Kampen. The Board of Trustees has approved the new investment
sub-advisory agreement and has called a special meeting of
shareholders to obtain shareholder approval of the agreement.
Investment sub-advisory fees under the new investment sub-advisory
agreement to be voted on at such meeting will be in the same amount as
those paid under the current sub-advisory agreement among the Trust,
Sierra Advisors and Van Kampen.
MSAM Acquisition Inc. is a wholly-owned subsidiary of MSAM Holdings
II, Inc. which, in turn, is a wholly-owned subsidiary of Morgan
Stanley Group Inc. Subject to a number of conditions being met, it is
currently anticipated that a closing will occur on or about October
31, 1996. Thereafter, VK/AC Holding, Inc. and its affiliated entities
shall be part of Morgan Stanley Group Inc.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 3
SUPPLEMENT DATED SEPTEMBER 23, 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 supplemented to date, for 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 Sierra Trust Funds (the "Trust") is amended and supplemented as follows:
In the section "THE FUNDS IN DETAIL -- SIERRA ADVISORS, ITS AFFILIATES AND
SERVICE PROVIDERS -- SUB-ADVISORS" under the heading "VAN KAMPEN" on page 63,
add the following two paragraphs after the first paragraph:
On June 24, 1996, VK/AC Holding, Inc. announced it had entered into an
Agreement and Plan of Merger among Morgan Stanley Group Inc., MSAM
Holdings II, Inc. and MSAM Acquisition Inc., pursuant to which MSAM
Acquisition Inc. will be merged with and into VK/AC Holding, Inc. and
VK/AC Holding, Inc. will be the surviving corporation. The proposed
transaction may be deemed to cause an assignment, within the meaning
of the Investment Company Act of 1940 and the Investment Advisers Act
of 1940, of the investment sub-advisory agreement among Van Kampen,
Sierra Advisors and the Trust. Accordingly, the completion of the
transaction is contingent upon, among other things and subject to
certain exceptions, the approval of both the Board of Trustees of the
Trust and the shareholders of the Fund of a new investment
sub-advisory agreement among the Trust, Sierra Advisors and Van
Kampen. The Board of Trustees has approved the new investment
sub-advisory agreement and has called a special meeting of
shareholders to obtain shareholder approval of the agreement.
Investment sub-advisory fees under the new investment sub-advisory
agreement to be voted on at such meeting will be in the same amount as
those paid under the current sub-advisory agreement among the Trust,
Sierra Advisors and Van Kampen.
MSAM Acquisition Inc. is a wholly-owned subsidiary of MSAM Holdings
II, Inc. which, in turn, is a wholly-owned subsidiary of Morgan
Stanley Group Inc. Subject to a number of conditions being met, it is
currently anticipated that a closing will occur on or about October
31, 1996. Thereafter, VK/AC Holding, Inc. and its affiliated entities
shall be part of Morgan Stanley Group Inc.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 4
SUPPLEMENT DATED SEPTEMBER 23, 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 supplemented to date, for 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 Sierra Trust Funds (the "Trust") is amended and supplemented as follows:
In the section "THE FUNDS IN DETAIL -- SIERRA ADVISORS, ITS AFFILIATES AND
SERVICE PROVIDERS -- SUB-ADVISORS" under the heading "VAN KAMPEN" on page 63,
add the following two paragraphs after the first paragraph:
On June 24, 1996, VK/AC Holding, Inc. announced it had entered into an
Agreement and Plan of Merger among Morgan Stanley Group Inc., MSAM
Holdings II, Inc. and MSAM Acquisition Inc., pursuant to which MSAM
Acquisition Inc. will be merged with and into VK/AC Holding, Inc. and
VK/AC Holding, Inc. will be the surviving corporation. The proposed
transaction may be deemed to cause an assignment, within the meaning
of the Investment Company Act of 1940 and the Investment Advisers Act
of 1940, of the investment sub-advisory agreement among Van Kampen,
Sierra Advisors and the Trust. Accordingly, the completion of the
transaction is contingent upon, among other things and subject to
certain exceptions, the approval of both the Board of Trustees of the
Trust and the shareholders of the Fund of a new investment
sub-advisory agreement among the Trust, Sierra Advisors and Van
Kampen. The Board of Trustees has approved the new investment
sub-advisory agreement and has called a special meeting of
shareholders to obtain shareholder approval of the agreement.
Investment sub-advisory fees under the new investment sub-advisory
agreement to be voted on at such meeting will be in the same amount as
those paid under the current sub-advisory agreement among the Trust,
Sierra Advisors and Van Kampen.
MSAM Acquisition Inc. is a wholly-owned subsidiary of MSAM Holdings
II, Inc. which, in turn, is a wholly-owned subsidiary of Morgan
Stanley Group Inc. Subject to a number of conditions being met, it is
currently anticipated that a closing will occur on or about October
31, 1996. Thereafter, VK/AC Holding, Inc. and its affiliated entities
shall be part of Morgan Stanley Group Inc.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 5
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 SEPTEMBER 23, 1996
TO PROSPECTUS DATED OCTOBER 31, 1995
OF
SIERRA TRUST FUNDS
P.O. BOX 5118
WESTBOROUGH, MASSACHUSETTS 01581-5118
The Prospectus, dated October 31, 1995, as supplemented to date, for 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 Sierra Trust Funds (the "Trust") is amended and supplemented as follows:
In the section "THE FUNDS IN DETAIL -- SIERRA ADVISORS, ITS AFFILIATES AND
SERVICE PROVIDERS -- SUB-ADVISORS" under the heading "VAN KAMPEN" on page 98,
add the following two paragraphs after the first paragraph:
On June 24, 1996, VK/AC Holding, Inc. announced it had entered into an
Agreement and Plan of Merger among Morgan Stanley Group Inc., MSAM
Holdings II, Inc. and MSAM Acquisition Inc., pursuant to which MSAM
Acquisition Inc. will be merged with and into VK/AC Holding, Inc. and
VK/AC Holding, Inc. will be the surviving corporation. The proposed
transaction may be deemed to cause an assignment, within the meaning
of the Investment Company Act of 1940 and the Investment Advisers Act
of 1940, of the investment sub-advisory agreement among Van Kampen,
Sierra Advisors and the Trust. Accordingly, the completion of the
transaction is contingent upon, among other things and subject to
certain exceptions, the approval of both the Board of Trustees of the
Trust and the shareholders of the Fund of a new investment
sub-advisory agreement among the Trust, Sierra Advisors and Van
Kampen. The Board of Trustees has approved the new investment
sub-advisory agreement and has called a special meeting of
shareholders to obtain shareholder approval of the agreement.
Investment sub-advisory fees under the new investment sub-advisory
agreement to be voted on at such meeting will be in the same amount as
those paid under the current sub-advisory agreement among the Trust,
Sierra Advisors and Van Kampen.
MSAM Acquisition Inc. is a wholly-owned subsidiary of MSAM Holdings
II, Inc. which, in turn, is a wholly-owned subsidiary of Morgan
Stanley Group Inc. Subject to a number of conditions being met, it is
currently anticipated that a closing will occur on or about October
31, 1996. Thereafter, VK/AC Holding, Inc. and its affiliated entities
shall be part of Morgan Stanley Group Inc.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 6
SUPPLEMENT DATED SEPTEMBER 23, 1996
TO STATEMENT OF ADDITIONAL INFORMATION DATED OCTOBER 31, 1995
OF
SIERRA TRUST FUNDS
P.O. BOX 5118
WESTBOROUGH, MASSACHUSETTS 01581-5118
The Statement of Additional Information, dated October 31, 1995 of the Sierra
Trust Funds (the "Company") relating to 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, INTERNATIONAL GROWTH AND
TARGET MATURITY 2002 FUNDS of the Company is hereby amended and supplemented by
the following:
In the section "MANAGEMENT OF THE COMPANY" under the heading "TRUSTEES" on page
6, the following text should be inserted after the biography of John W.
English:
Alfred E. Osborne, Jr. Ph.D.
Professor
The Harold Price Center for Entrepreneurial Studies at UCLA
110 Westwood Plaza, Suite C305
Los Angeles, California 90095-1481
University professor, researcher and administrator at UCLA
since 1972. Director, Times Mirror Company, ReadiCare, Inc., United
States Filter Corporation, Nordstrom, Inc., Seda Specialty Packing
Corporation and Greyhound Lines, Inc. Independent general partner,
Technology Funding Venture Partners V. Governor of the National
Association of Securities Dealers, Inc.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
