<PAGE>
SUPPLEMENT DATED APRIL 1, 1997
TO PROSPECTUS DATED OCTOBER 31, 1996
OF
SIERRA TRUST FUNDS
P.O. BOX 5118
WESTBORO, MASSACHUSETTS 01581-5118
The Prospectus, dated October 31, 1996, as supplemented to date, for the Class A
Shares, Class B Shares and Class I 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 -- ADVISOR" on page 61, add the following paragraph after the
second paragraph:
On March 6, 1997, Great Western Financial Corporation ("Great
Western"), the indirect parent of Sierra Advisors, the Funds'
investment advisor, and Washington Mutual, Inc. ("Washington Mutual"),
a financial services company, announced that they had entered into an
Agreement and Plan of Merger providing for the merger of Great Western
with and into a wholly-owned subsidiary of Washington Mutual (the
"Merger"). Subject to the satisfaction or waiver of certain conditions,
including the receipt of necessary shareholder and regulatory
approvals, it is anticipated that the Merger would close in the third
quarter of 1997. Following the Merger, Sierra Advisors would be an
indirect subsidiary of Washington Mutual. The Merger was announced
following the announcement by H.F. Ahmanson ("Ahmanson") of an
unsolicited proposal for the merger of Great Western and Ahmanson,
which proposal was subsequently revised and is outstanding.
In the section "THE FUNDS IN DETAIL -- SIERRA ADVISORS, ITS AFFILIATES AND
SERVICE PROVIDERS -- SUB- ADVISORS" under the heading "VAN KAMPEN" on page 62,
add the following two paragraphs after the first paragraph:
On February 5, 1997, Morgan Stanley Group Inc. ("Morgan Stanley") and
Dean Witter, Discover & Co. announced that they had entered into an
Agreement and Plan of Merger to form Morgan Stanley, Dean Witter,
Discover & Co. Dean Witter, Discover & Co. is a financial services
company with three major businesses: full service brokerage, credit
services and asset management. Morgan Stanley is the indirect parent of
Van Kampen American Capital Management Inc. ("Van Kampen"), investment
sub-advisor to the California Municipal Fund, Florida Insured Municipal
Fund, California Insured Intermediate Municipal Fund and National
Municipal Fund.
Subject to certain conditions being met, it is currently anticipated
that the transaction will close in mid- 1997. Thereafter, Van Kampen
will be an indirect subsidiary of Morgan Stanley, Dean Witter, Discover
& Co.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
SHAREHOLDERS OF THE SIERRA ASSET MANAGEMENT PORTFOLIOS
SHOULD REFER TO THE INFORMATION ON THE OTHER SIDE
4559 (4/97)
<PAGE>
SUPPLEMENT DATED APRIL 1, 1997
TO PROSPECTUS DATED OCTOBER 31, 1996
OF
SIERRA TRUST FUNDS
P.O. BOX 5118
WESTBORO, MASSACHUSETTS 01581-5118
The Prospectus, dated October 31, 1996, as supplemented to date, for the Class A
Shares, Class B Shares and Class I 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 -- ADVISOR" on page 61, add the following paragraph after the
second paragraph:
On March 6, 1997, Great Western Financial Corporation ("Great
Western"), the indirect parent of Sierra Advisors, the Funds' investment
advisor, and Washington Mutual, Inc. ("Washington Mutual"), a financial services
company, announced that they had entered into an Agreement and Plan of Merger
providing for the merger of Great Western with and into a wholly-owned
subsidiary of Washington Mutual (the "Merger"). Subject to the satisfaction or
waiver of certain conditions, including the receipt of necessary shareholder and
regulatory approvals, it is anticipated that the Merger would close in the third
quarter of 1997. Following the Merger, Sierra Advisors would be an indirect
subsidiary of Washington Mutual. The Merger was announced following the
announcement by H.F. Ahmanson ("Ahmanson") of an unsolicited proposal for the
merger of Great Western and Ahmanson, which proposal was subsequently revised
and is outstanding.
In the section "THE FUNDS IN DETAIL -- SIERRA ADVISORS, ITS AFFILIATES AND
SERVICE PROVIDERS -- SUB-ADVISORS" under the heading "VAN KAMPEN" on page 62,
add the following two paragraphs after the first paragraph:
On February 5, 1997, Morgan Stanley Group Inc. ("Morgan Stanley") and
Dean Witter, Discover & Co. announced that they had entered into an
Agreement and Plan of Merger to form Morgan Stanley, Dean Witter,
Discover & Co. Dean Witter, Discover & Co. is a financial services
company with three major businesses: full service brokerage, credit
services and asset management. Morgan Stanley is the indirect parent of
Van Kampen American Capital Management Inc. ("Van Kampen"), investment
sub-advisor to the California Municipal Fund, Florida Insured Municipal
Fund, California Insured Intermediate Municipal Fund and National
Municipal Fund.
Subject to certain conditions being met, it is currently anticipated
that the transaction will close in mid-1997. Thereafter, Van Kampen will
be an indirect subsidiary of Morgan Stanley, Dean Witter, Discover & Co.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
4559 (4/97)
<PAGE>
SUPPLEMENT DATED APRIL 1, 1997
TO PROSPECTUS DATED OCTOBER 31, 1996
OF
SIERRA TRUST FUNDS
P.O. BOX 5118
WESTBORO, MASSACHUSETTS 01581-5118
The Prospectus, dated October 31, 1996, 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 -- ADVISOR" on page 57, add the following paragraph after the
second paragraph:
On March 6, 1997, Great Western Financial Corporation ("Great
Western"), the indirect parent of Sierra Advisors, the Funds'
investment advisor, and Washington Mutual, Inc. ("Washington Mutual"),
a financial services company, announced that they had entered into an
Agreement and Plan of Merger providing for the merger of Great Western
with and into a wholly-owned subsidiary of Washington Mutual (the
"Merger"). Subject to the satisfaction or waiver of certain conditions,
including the receipt of necessary shareholder and regulatory
approvals, it is anticipated that the Merger would close in the third
quarter of 1997. Following the Merger, Sierra Advisors would be an
indirect subsidiary of Washington Mutual. The Merger was announced
following the announcement by H.F. Ahmanson ("Ahmanson") of an
unsolicited proposal for the merger of Great Western and Ahmanson,
which proposal was subsequently revised and is outstanding.
In the section "THE FUNDS IN DETAIL -- SIERRA ADVISORS, ITS AFFILIATES AND
SERVICE PROVIDERS -- SUB- ADVISORS" under the heading "VAN KAMPEN" on page 58,
add the following two paragraphs after the first paragraph:
On February 5, 1997, Morgan Stanley Group Inc. ("Morgan Stanley") and
Dean Witter, Discover & Co. announced that they had entered into an
Agreement and Plan of Merger to form Morgan Stanley, Dean Witter,
Discover & Co. Dean Witter, Discover & Co. is a financial services
company with three major businesses: full service brokerage, credit
services and asset management. Morgan Stanley is the indirect parent of
Van Kampen American Capital Management Inc. ("Van Kampen"), investment
sub-advisor to the California Municipal Fund, Florida Insured Municipal
Fund, California Insured Intermediate Municipal Fund and National
Municipal Fund.
Subject to certain conditions being met, it is currently anticipated
that the transaction will close in mid-1997. Thereafter, Van Kampen
will be an indirect subsidiary of Morgan Stanley, Dean Witter, Discover
& Co.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
6961 (4/97)
<PAGE>
SUPPLEMENT DATED APRIL 1, 1997
TO PROSPECTUS DATED OCTOBER 31, 1996
OF
SIERRA TARGET MATURITY 2002 FUND
P.O. BOX 5118
WESTBORO, MASSACHUSETTS 01581-5118
The Prospectus, dated October 31, 1996, as supplemented to date, for the SIERRA
TARGET MATURITY 2002 FUND (the "Fund") is amended and supplemented as follows:
In the section "THE FUND IN DETAIL -- SIERRA ADVISORS, ITS AFFILIATES AND
SERVICE PROVIDERS -- ADVISOR" on page 21, add the following paragraph after the
second paragraph:
On March 6, 1997, Great Western Financial Corporation ("Great
Western"), the indirect parent of Sierra Advisors, the Fund's
investment advisor, and Washington Mutual, Inc. ("Washington Mutual"),
a financial services company, announced that they had entered into an
Agreement and Plan of Merger providing for the merger of Great Western
with and into a wholly-owned subsidiary of Washington Mutual (the
"Merger"). Subject to the satisfaction or waiver of certain conditions,
including the receipt of necessary shareholder and regulatory
approvals, it is anticipated that the Merger would close in the third
quarter of 1997. Following the Merger, Sierra Advisors would be an
indirect subsidiary of Washington Mutual. The Merger was announced
following the announcement by H.F. Ahmanson ("Ahmanson") of an
unsolicited proposal for the merger of Great Western and Ahmanson,
which proposal was subsequently revised and is outstanding.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
69631 (4/97)
