ISG FUNDS
PROSPECTUS MAY 1, 1999
AS REVISED JUNE 3, 1999
ISG MONEY MARKET FUNDS
o Prime Money Market Fund
o Treasury Money Market Fund
o Tax-Exempt Money Market Fund
MANAGED BY
FIRST AMERICAN NATIONAL BANK
Questions?
Call 1-800-852-0045
or your investment representative.
AS WITH ALL MUTUAL FUNDS, THE SECURITIES AND EXCHANGE COMMISSION HAS NOT
APPROVED OR DISAPPROVED THESE FUND SHARES OR DETERMINED WHETHER THIS
PROSPECTUS IS TRUTHFUL OR COMPLETE. ANYONE WHO TELLS YOU OTHERWISE IS
COMMITTING A CRIME.
<PAGE>
TABLE OF CONTENTS
CAREFULLY REVIEW THIS IMPORTANT DESCRIPTION OF THE FUNDS - OBJECTIVES,
SECTION TO LEARN ABOUT EACH FUND'S RISK/RETURN AND EXPENSES
GOAL, MAIN IVESTMENT STRATEGIES
AND RISKS, PAST PERFORMANCE, AND FEES.
- OVERVIEW
- PRIME MONEY MARKET FUND
- TREASURY MONEY MARKET FUND
- TAX-EXEMPT MONEY MARKET FUND
REVIEW THIS SECTION ADDITIONAL INVESTMENT STRATEGIES AND RISKS
FOR ADDITIONAL INFORMATION
ON INVESTMENT STRATEGIES AND
RISKS.
- PRIME MONEY MARKET FUND
- TREASURY MONEY MARKET FUND
- TAX-EXEMPT MONEY MARKET FUND
- APPLICABLE TO ALL FUNDS
REVIEW THIS SECTION FUND MANAGEMENT
FOR DETAILS ON THE PEOPLE
AND ORGANIZATIONS WHO
OVERSEE THE FUNDS.
- INVESTMENT ADVISER
- ADMINISTRATOR AND DISTRIBUTOR
REVIEW THIS SECTION FOR SHAREHOLDER INFORMATION
DETAILS ON HOW SHARES ARE
VALUED, HOW TO PURCHASE, SELL
AND EXCHANGE SHARES, RELATED
CHARGES AND PAYMENTS OF
DIVIDENDS AND DISTRIBUTIONS.
- PRICING OF FUND SHARES
- PURCHASING AND ADDING TO YOUR SHARES
- SELLING YOUR SHARES
- GENERAL POLICIES ON SELLING SHARES
- EXCHANGING YOUR SHARES
- DIVIDENDS, DISTRIBUTIONS AND TAXES
REVIEW THIS SECTION FINANCIAL HIGHLIGHTS
FOR RECENT FINANCIAL
INFORMATION.
- PRIME MONEY MARKET FUND
- TREASURY MONEY MARKET FUND
WHERE TO HEAR MORE BACK COVER
ABOUT THE FUNDS.
<PAGE>
OVERVIEW
- -------------------------------------------------------------------------------
THE FUNDS Three ISG Funds are offered by this prospectus.
Each Fund is a separate money market fund with its
own investment strategy and risk/return profile.
The differences in strategy among the Funds
determine the types of securities in which each
Fund invests and can be expected to affect the
degree of risk each Fund is subject to and its
yield or return. The Funds are actively managed
and, thus, are subject to manager risk, which is
the possibility that poor securities selection
will cause the Funds to underperform other funds
with similar investment objectives. Because you
could lose money by investing in a Fund, be sure
to read all risk disclosure carefully before
investing.
You should be aware that ISG Funds:
o Are not bank deposits
o Are not guaranteed, endorsed or
insured by any bank, financial
institution or government entity such
as the Federal Deposit Insurance Corporation
o Are not guaranteed to achieve their stated
goals
The Funds seek current income and liquidity and
invest primarily in short-term securities and will
seek to maintain a stable price of $1.00 per
share. An investment in the Funds is not insured
or guaranteed by the FDIC or any other government
agency.
WHO MAY WANT TO Consider investing in the Funds if you are:
INVEST?
! seeking preservation of capital
! investing short-term reserves
! willing to accept lower potential returns in
exchange for a higher degree of safety
The Funds may not be appropriate if you are:
! seeking high total returns
! pursuing a long-term goal or investing for
retirement
INFORMATION ON EACH FUND'S RECENT STRATEGIES AND
HOLDINGS CAN BE FOUND IN THE CURRENT
ANNUAL/SEMI-ANNUAL REPORT (SEE BACK COVER).
<PAGE>
DESCRIPTION OF THE FUNDS--OBJECTIVES, RISK/RETURN AND EXPENSES
PRIME MONEY MARKET FUND
TICKER SYMBOL:
CLASS A - IPAXX
INVESTMENT OBJECTIVE The Fund seeks to provide investors with as high a
level of current income as is consistent with the
preservation of capital and the maintenance of
liquidity.
PRINCIPAL INVESTMENT The Fund invests in a diversified portfolio of
STRATEGIES high-quality, short-term U.S. dollar-denominated
debt securities, including the following:
o obligations issued or guaranteed by the U.S.
Government or its agencies or instrumentalities
o certificates of deposit, time deposits,
bankers' acceptances and other short-term
securities issued by domestic or foreign banks
or their subsidiaries or branches
o domestic and foreign commercial paper
and other short-term corporate debt
obligations, including those with
floating or variable rates of interest
o obligations issued or guaranteed by one
or more foreign governments or their
agencies or instrumentalities,
including obligations of supranational entities
o asset-backed securities
o repurchase agreements collateralized by the
types of securities listed above
The Fund buys and sells securities based on
considerations of safety of principal and
liquidity, which means that the Fund may not
necessarily invest in securities paying the
highest available yield at a particular time. The
Fund will attempt to increase its yield by trading
to take advantage of short-term market variations.
The Adviser evaluates Fund investments based on
credit analysis and the interest rate outlook.
The Fund normally will invest at least 25% of its
total assets in domestic or foreign bank
obligations.
PRINCIPAL INVESTMENT Although the Fund seeks to preserve the value of
RISKS your investment at $1.00 per share, it is possible
to lose money by investing in the Fund.
The Fund is subject to the risk that changes in
interest rates will affect the yield or value of
the Fund's investments in debt securities.
The Fund's investments also are subject to credit
risk, which is the risk that the issuer or
guarantor of a debt security will be unable or
unwilling to make timely interest or principal
payments, or to otherwise honor its obligations.
Credit risk includes the possibility that any of
the Fund's investments will have its credit rating
downgraded or will default.
PERFORMANCE BAR CHART AND TABLE
The bar chart and table on this page YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31
provide some indication of the risks FOR CLASS A SHARES
of investing in the Prime Money
Market Fund by showing how the 5.51% 4.88% 4.90% 4.85%
Fund has performed and how its ------------------------------------
performance has varied from year 1995 96 97 98
to year. Both the bar chart and the
table assume the reinvestment of
dividends and distributions. Of
course, past performance does not
indicate how the Fund will perform Best quarter: Q2 1995 + 1.37%
in the future. Worst quarter: Q4 1998 + 1.15%
AVERAGE ANNUAL TOTAL RETURNS
(for the periods ended December 31, 1998)
Inception
Date Past Year Past 5 Years Past 10 Years Since Inception
Class A 3/29/94 4.85% N/A N/A 4.89%
As of December 31, 1998, the Fund's 7-day yield for Class A was 4.69%. Without
fee waivers and expense reimbursements, the Fund's yield would have been 4.68%
for this time period. For current yield information on the Fund, call
1-800-852-0045. The Fund's yield appears in THE WALL STREET JOURNAL each
Thursday.
<PAGE>
FEES AND EXPENSES
If you purchase and hold shares of Shareholder
the Prime Money Market Fund, you Transaction
will pay certain fees and expenses, Fees (fees
which are described in the tables. paid by you CLASS
Shareholder transaction fees are paid directly) A SHARES
from your account. Annual Fund
operating expenses are paid out of
Fund assets, and are reflected in the Maximum sales
Fund's yield. charge (load)
on purchases AS A % OF None
OFFERING PRICE
---------------------------------
Maximum deferred
sales charge (CDSC) None
AS A % OF LOWER OF
PURCHASE OR SALE PRICE
Annual Fund
Operating
Expenses
(fees paid from
Fund assets)
---------------------------------
Management Fee .25%
---------------------------------
Distribution (12b-1)
Fee None
---------------------------------
Other Expenses .57%
---------------------------------
Total Annual Fund
Operating Expenses1 .82%
---------------------------------
- --------
1 The expenses noted above do not reflect any fee waivers or expense
reimbursement arrangements that are or were in effect. Total expenses after
fee waivers and expense reimbursements for Class A were .81%. Any fee
waiver or expense reimbursement arrangement is voluntary and may be
discontinued at any time.
<PAGE>
EXPENSE EXAMPLE
Use the example at right to PRIME MONEY MARKET 1 3 5 10
help you compare the cost of FUND Year Years Years Years
investing in the Fund with
the cost of investing in CLASS A SHARES $ 84 $262 $455 $1,014
other mutual funds. It -----------------------------------------------
illustrates the amount
of fees and expenses
you would pay, assuming
the following:
o $10,000 investment
o 5% annual return
o no changes in the Fund's operating expenses
o reinvestment of all dividends and distributions
Because actual returns and operating
expenses will be different,
this example is for comparison only.
<PAGE>
DESCRIPTION OF THE FUNDS--OBJECTIVES, RISK/RETURN AND EXPENSES
TREASURY MONEY MARKET FUND
TICKER SYMBOL:
CLASS A - ITAXX
INVESTMENT OBJECTIVE The Fund seeks to provide investors with as high a
level of current income as is consistent with the
preservation of capital and the maintenance of
liquidity.
PRINCIPAL INVESTMENT The Fund invests primarily in U.S. Treasury
STRATEGIES securities and repurchase agreements in respect
thereof. The Fund may invest up to 35% of its
assets in other securities guaranteed as to
payment of principal and interest by the U.S.
Government and repurchase agreements in respect
thereof.
The income from the Fund's investment in direct
obligations of the United States is exempt from
state and local, but not Federal, income taxes.
Dividends and distributions attributable to income
from repurchase agreements may be subject to
Federal, state and local taxes.
The Fund invests based on considerations of safety
of principal and liquidity, which means that the
Fund may not necessarily invest in securities
paying the highest available yield at a particular
time. The Fund will attempt to increase its yield
by trading to take advantage of short-term market
variations. The Adviser generally evaluates
investments based on interest rate sensitivity.
PRINCIPAL INVESTMENT Although the Fund seeks to preserve the value of
RISKS your investment at $1.00 per share, it is possible
to lose money by investing in the Fund. The Fund
is subject to the risk that changes in interest
rates will affect the yield or value of the Fund's
investments.
A security backed by the U.S. Treasury or the full
faith and credit of the United States is
guaranteed only as to timely payment of interest
and principal when held to maturity. Neither the
market value of such securities nor the Fund's
share price is guaranteed.
<PAGE>
PERFORMANCE BAR CHART AND TABLE
The bar chart and table on this page YEAR-BY-YEAR TOTAL RETURNS AS OF
provide some indication of the risks 12/31 FOR CLASS A SHARES
of investing in the Treasury Money
Market Fund by showing how the 2.06% 4.05% 5.41% 4.78% 4.78% 4.68%
Fund has performed and how its ---------------------------------------
performance has varied from year 1993 94 95 96 97 98
to year. Both the bar chart and the
table assume the reinvestment of
dividends and distributions. Of Best quarter: Q2 1995 + 1.36%
course, past performance does not Worst quarter: Q3 1993 + .60%
indicate how the Fund will perform
in the future.
AVERAGE ANNUAL TOTAL RETURNS
(for the periods ended December 31, 1998)
Inception
Date Past Year Past 5 Years Past 10 Years Since Inception
Class A 10/1/92* 4.68% 4.74% N/A 4.29%
As of December 31, 1998, the Fund's 7-day yield for Class A was 4.22%. Without
fee waivers and expense reimbursements, the Fund's yield would have been 4.21%
for this time period. For current yield information on the Fund, call
1-800-852-0045. The Fund's yield appears in THE WALL STREET JOURNAL each
Thursday.
* The Treasury Money Market Fund commenced operations on 3/29/94 through a
transfer of assets from collective trust fund accounts managed by the
Adviser, using materially equivalent investment objectives, policies and
methodologies as the Fund. The quoted performance of the Fund includes the
performance of these trust accounts for periods prior to the Fund's
commencement of operations, as adjusted to reflect the expenses associated
with the Fund. The trust accounts were not registered with the SEC and
were not subject to the investment restrictions imposed by law on
registered mutual funds. If these trust accounts had been registered,
their returns may have been lower.
<PAGE>
FEES AND EXPENSES
If you purchase and hold shares of Shareholder
the Treasury Money Market Fund, Transaction
you will pay certain fees and Fees (fees
expenses, which are described in the paid by you CLASS A
tables. Shareholder transaction fees directly) SHARES
are paid from your account. Annual
Fund operating expenses are paid
out of Fund assets, and are reflected Maximum sales
in the Fund's yield. charge (load)
on purchases AS A % OF None
OFFERING PRICE
---------------------------------
Maximum deferred
sales charge (CDSC) None
AS A % OF LOWER OF
PURCHASE OR SALE PRICE
Annual Fund
Operating
Expenses
(fees paid from
Fund assets)
---------------------------------
Management Fee .25%
---------------------------------
Distribution (12b-1)
Fee None
---------------------------------
Other Expenses .53%
---------------------------------
Total Annual Fund
Operating Expenses1 .78%
---------------------------------
- ----------------------
1 The expenses noted above do not reflect any fee waivers or expense
reimbursement arrangements that are or were in effect. Total expenses after
fee waivers and expense reimbursements for Class A were .77%. Any fee
waiver or expense reimbursement arrangement is voluntary and may be
discontinued at any time.
EXPENSE EXAMPLE
Use the example at right TREASURY MONEY MARKET 1 3 5 10
to help you compare FUND Year Years Years Years
the cost of investing
in the Fund with the CLASS A SHARES $80 $249 $433 $966
cost of investing in
other mutual funds.
It illustrates the
amount of fees and
expenses you would pay,
assuming the following:
o $10,000 investment
o 5% annual return
o redemption at the end of each period
o no changes in the Fund's operating expenses
o reinvestment of all dividends and distributions
Because actual returns and
operating expenses will be
different, this example is
for comparison only.
<PAGE>
DESCRIPTION OF THE FUNDS--OBJECTIVES, RISK/RETURN AND EXPENSES
TAX-EXEMPT MONEY MARKET FUND
TICKER SYMBOL:
CLASS A - N/A
INVESTMENT OBJECTIVE The Fund seeks to provide investors with as high a
level of current income exempt from Federal income
tax as is consistent with the preservation of
capital and the maintenance of liquidity.
PRINCIPAL INVESTMENT The Fund normally invests substantially all of its
STRATEGIES assets in short-term municipal obligations that
provide income exempt from Federal income tax.
Municipal obligations are debt obligations issued
by states, territories and possessions of the
United States and their political subdivisions,
agencies and instrumentalities, and certain other
entities.
The Adviser buys and sells municipal obligations
based on considerations of safety of principal and
liquidity, which means the Fund may not
necessarily invest in securities paying the
highest available yield at a particular time. The
Adviser evaluates municipal obligations based on
credit quality, financial outlook and interest
rate sensitivity, and seeks to diversify the
Fund's investments across several different
states, sectors and issuers.
PRINCIPAL INVESTMENT Although the Fund seeks to preserve the value of
RISKS your investment at $1.00 per share, it is possible
to lose money by investing in the Fund.
The Fund's investments in short-term municipal
obligations will be subject primarily to interest
rate and credit risk.
Prices of municipal obligations tend to move
inversely with changes in interest rates. The most
immediate effect of a rise in rates is usually a
drop in the prices of such securities, and
therefore in the Fund's share price as well.
Interest rate risk is usually greater for
fixed-income securities with longer maturities or
durations.
The Fund's investments also are subject to credit
risk, which is the risk that the issuer of the
security will fail to make timely payments of
interest or principal, or to otherwise honor its
obligations. Credit risk includes the possibility
that any of the Fund's investments will have its
credit rating downgraded or will default.
Although the Fund's objective is to generate
income exempt from Federal income tax, interest
from some of the Fund's holdings may be subject to
the Federal alternative minimum tax.
<PAGE>
PERFORMANCE BAR CHART AND TABLE
As of the date of this prospectus, the Fund had not completed a year of
operations. Accordingly, no performance information is provided.
FEES AND EXPENSES
If you purchase and hold shares of the Shareholder
Tax-Exempt Money Market Fund, you Transaction
will pay certain fees and expenses, Fees (fees
which are described in the tables. paid by you CLASS
Shareholder transaction fees are paid directly) A SHARES
from your account. Annual Fund
operating expenses are paid out of Fund
assets, and are reflected in the Fund's Maximum sales
yield. charge (load)
on purchases AS A % OF None
OFFERING PRICE
-----------------------------------
Maximum deferred
sales charge (CDSC) AS None
A % OF LOWER OF PURCHASE
OR SALE PRICE
Annual Fund
Operating
Expenses
(fees paid from
Fund assets)
-----------------------------------
Management Fee .35%
-----------------------------------
Distribution (12b-1) Fee None
------------------------------------
Other Expenses .57%
-----------------------------------
Total Annual Fund
Operating Expenses1 .92%
-----------------------------------
- ----------------------
1 Other expenses are based on estimated amounts for the current fiscal year.
The expenses noted above do not reflect any fee waivers or expense
reimbursement arrangements in effect. Any fee waiver or expense
reimbursement arrangement is voluntary and may be discontinued at any time.
EXPENSE EXAMPLE
Use the example at TREASURY MONEY MARKET 1 3
right to help you FUND Year Years
compare the cost of
investing in the CLASS A SHARES $ 94 $293
Fund with the cost
of investing in other
mutual funds. It
illustrates the amount
of fees and expenses
you would pay, assuming
the following:
o $10,000 investment
o 5% annual return
o no changes in the Fund's operating expenses
o reinvestment of all dividends and distributions
Because actual returns
and operating expenses
will be different, this example is
for comparison only.
<PAGE>
ADDITIONAL INVESTMENT STRATEGIES AND RISKS
MONEY MARKET FUNDS
PRIME MONEY MARKET FUND--The Fund will invest in U.S. dollar denominated
short-term money market obligations.
The Fund usually invests at least 25% of its assets in domestic and/or U.S.
dollar denominated foreign bank obligations. Thus, it will have correspondingly
greater exposure to the risks generally associated with investments in the
banking industry. Sustained increases in interest rates, for example, can
adversely affect the availability and cost of capital funds for a bank's lending
activities, and a deterioration in general economic conditions could increase
the bank's exposure to credit losses. In addition, economic or regulatory
developments in or related to the banking industry, and competition within the
banking industry as well as with other types of financial institutions will
affect the Fund's return. The Fund, however, will seek to minimize its exposure
to such risks by investing only in debt securities which are determined to be of
high quality.
The Fund may purchase asset-backed securities issued by special purpose entities
whose primary assets consist of a pool of mortgages, loans, receivables or other
assets. Payment of principal and interest may depend largely on the cash flows
generated by the assets backing the securities and, in certain cases, supported
by letters of credit, surety bonds or other forms of credit or liquidity
enhancements. The value of asset-backed securities also may be affected by the
creditworthiness of the servicing agent for the pool of assets, the originator
of the loans or receivables or the financial institution providing the credit
support.
Since the Fund may invest in U.S. dollar denominated securities issued by
foreign issuers, such as foreign governments, foreign banks and foreign
subsidiaries or branches of domestic banks, it may be subject to additional
investment risk with respect to those securities which are different in some
respects from those incurred by a fund that invests only in debt obligations of
U.S. domestic issuers. Foreign issuers usually are not subject to the same
degree of regulation as U.S. issuers. Reporting, accounting, and auditing
standards of foreign countries differ, in some cases, significantly from U.S.
standards. Foreign risk includes nationalization, expropriation or confiscatory
taxation, political changes or diplomatic developments that could adversely
affect such investments.
TREASURY MONEY MARKET FUND--The Fund will invest, as a fundamental policy, at
least 65% of its total assets in U.S. Treasury securities and repurchase
agreements in respect thereof. The remainder of its assets may be invested in
other securities guaranteed as to payment of principal and interest by the U.S.
Government and repurchase agreements in respect thereof.
Repurchase agreements are contracts in which a U.S. commercial bank or
securities dealer sells U.S. Government securities to the Fund and agrees to
repurchase them on a specific date (usually the next day) and at a specific
price. These agreements offer the Fund a means of investing money for a short
period of time. If the seller defaults, the Fund could be delayed in selling the
securities which could affect the Fund's yield.
The Fund will not invest in securities issued or guaranteed by U.S. Government
agencies, instrumentalities or government-sponsored enterprises that are not
backed by the full faith and credit of the United States.
TAX-EXEMPT MONEY MARKET FUND--The Fund will invest at least 80% of its total
assets in short-term municipal obligations. The Fund may invest up to 20% of its
net assets in municipal obligations which provide income subject to the
alternative minimum tax and, except for temporary defensive purposes, in other
investments subject to Federal income tax.
Municipal obligations are debt obligations typically divided into two types:
o GENERAL OBLIGATION BONDS, which are secured by the full faith and
credit of the issuer and its taxing power; and
o REVENUE BONDS, which are payable from the revenues derived from a
specific revenue source, such as charges for water and sewer
service or highway tolls.
The Tax-Exempt Money Market Fund may invest more than 25% of the value of its
total assets in municipal obligations which are related in such a way that an
economic, business or political development or change affecting one such
security also would affect the other securities; for example, securities the
interest upon which is paid from revenues of similar types of projects such as
mass transit or water and sewer works, or securities whose issuers are located
in the same state. As a result of such investments, the Fund's yield may be more
affected by factors pertaining to the economy of the relevant governmental
issuer and other factors specifically affecting the ability of issuers of such
securities to meet their obligations.
APPLICABLE TO EACH MONEY MARKET FUND--As a money market fund, each Fund is
subject to maturity, quality and diversification requirements designed to help
it maintain a stable price of $1.00 per share. Generally, each Fund is required
to invest at least 95% of its assets in the securities of issuers with the
highest credit rating or the unrated equivalent as determined by the Adviser.
The remainder may be invested in securities with the second highest credit
rating. In addition, each Fund must do the following:
o maintain an average dollar weighted portfolio maturity of 90 days or less
o buy individual securities that have remaining maturities of 397 days or
less
o buy only high quality U.S. dollar denominated obligations
Each Fund may lend its portfolio securities to brokers, dealers and other
financial institutions, which could subject the Fund to risk of loss if the
institution breaches its agreement with the Fund and, for the Tax-Exempt Money
Market Fund, may give rise to taxable income. In connection with such loans, the
Fund will receive collateral consisting of cash or U.S. Government securities
which will be maintained at all times in an amount equal to 100% of the current
market value of the loaned securities.
Each Fund, except the Tax-Exempt Money Market Fund, may enter into reverse
repurchase agreements with banks, brokers or dealers. In these transactions, the
Fund sells a portfolio security to another party in return for cash and agrees
to repurchase the security generally at a particular price and time. The Fund
will use the cash to make investments which either mature or have a demand
feature to resell to the issuer at a date simultaneous with or prior to the time
the Fund must repurchase the security. Reverse repurchase agreements may be
preferable to a regular sale and later repurchase of the securities because it
avoids certain market risks and transaction costs. Such transactions, however,
may increase the risk of potential fluctuations in the market value of the
Fund's assets. In addition, interest costs on the cash received may exceed the
return on the securities purchased.
Each Fund expects to maintain a net asset value of $1.00 per share, but there is
no assurance that the Funds will be able to do so on a continuous basis. Each
Fund's performance per share will change daily based on many factors, including
fluctuation in interest rates, and, for the Prime Money Market Fund and
Tax-Exempt Money Market Fund, the quality of the instruments in the Fund's
investment portfolio, economic conditions and general market conditions.
APPLICABLE TO ALL FUNDS
YEAR 2000 RISK--Like other funds and business organizations around the world,
the Funds could be adversely affected if the computer systems used by the
Adviser and the Funds' other service providers do not properly process and
calculate date-related information for the year 2000 and beyond. Year 2000
issues may adversely affect the companies or other issuers in which the Funds
invest where, for example, such entities incur substantial costs to address Year
2000 issues or suffer losses caused by the failure to adequately or timely do
so. Foreign markets may be less prepared to address Year 2000 issues than U.S.
ones.
The Adviser and the Funds' other service providers (i.e., Administrator,
Transfer Agent, Fund Accounting Agent, Custodian and Distributor) have assured
the Funds that they have developed and are implementing clearly defined and
documented plans intended to minimize risks to services critical to the Funds'
operations associated with Year 2000 issues. The Adviser and the Funds' service
providers are likewise seeking assurances from their respective vendors and
suppliers that such entities are addressing Year 2000 issues.
While the ultimate costs or consequences of incomplete or untimely resolution of
Year 2000 issues by the Adviser or the Funds' service providers cannot be
accurately assessed at this time, the Funds currently have no reason to believe
that the Year 2000 plans of the Adviser and the Funds' service providers will
not be completed by December 31, 1999, or that the anticipated costs associated
with full implementation of their plans will have a material adverse impact on
either their business operations or financial condition or those of the Funds.
If any systems upon which the Funds are dependent are not Year 2000 ready by
December 31, 1999, administrative errors and account maintenance failures would
likely occur, which could result in a decline in the value of a Fund's
securities and yield.
FUND MANAGEMENT
INVESTMENT ADVISER
First American National Bank, located at First American Center, 315 Deaderick
Street, Nashville, Tennessee 37237, serves as each Fund's investment adviser.
The Adviser is a wholly-owned subsidiary of First American Corporation, a
registered bank holding company. First American National Bank, and its
affiliates, provide personal trust, estate, employee benefit trust, corporate
trust and custody services to over 7,000 accounts, as well as investment
advisory services. The Adviser, and its affiliates, as of December 31, 1998, had
approximately $10 billion under trust and approximately $6 billion under
management.
The table below shows the investment advisory fee rate paid (or payable for the
Tax-Exempt Money Market Fund) to the Adviser by the relevant Fund for the fiscal
year ended December 31, 1998.
<PAGE>
NAME OF FUND ANNUAL RATE
Prime Money Market Fund .25%
Treasury Money Market Fund .25%
Tax-Exempt Money Market Fund .35%
ADMINISTRATOR AND DISTRIBUTOR
BISYS Fund Services Ohio, Inc. (the "Administrator"), 3435 Stelzer Road,
Columbus, Ohio 43219-3035, serves as each Fund's administrator. The
administrative services of the Administrator include providing office space,
equipment and clerical personnel to the Funds and supervising custodial,
auditing, valuation, bookkeeping, legal and dividend disbursing services.
BISYS Fund Services Limited Partnership (the "Distributor"), an affiliate of the
Administrator, serves as the distributor of each Fund's shares. The Distributor
may provide financial assistance in connection with pre-approved seminars,
conferences and advertising to the extent permitted by applicable state or
self-regulatory agencies, such as the National Association of Securities
Dealers.
<PAGE>
SHAREHOLDER INFORMATION
PRICING OF FUND SHARES
HOW NAV IS CALCULATED Per share net asset value (NAV) is determined
and Fund shares are priced at 11:00 a.m. Eastern
The NAV is calculated by time for the Tax-Exempt Money Market fund, and
adding the total value 2:00 p.m. Eastern time for each other Fund
of the Fund's investments on each day the New York Stock Exchange is open,
and other assets, except Columbus Day and Veterans' Day.
subtracting its liabilities
and then dividing that Your order for purchase, sale or exchange of
figure by the number of shares is priced at the next NAV calculated
outstanding shares of the after the Fund receives your order. This is
Fund: what is known as the offering price.
Each Fund uses the amortized cost method of
NAV = valuing its investments, which does not take
into account unrealized gains or losses. For
TOTAL ASSETS - LIABILITIES further information regarding the methods
- ---------------------------- employed in valuing the Funds' investments,
Number of Shares Outstanding see the Statement of Additional Information.
<PAGE>
SHAREHOLDER INFORMATION
PURCHASING AND ADDING TO YOUR SHARES
You may purchase Class A Minimum Investment
------------------
shares through a number of ACCOUNT TYPE INITIAL SUBSEQUENT
institutions, including the
Adviser and its affiliates, CLASS A
directly from the Distributor, Regular $ 1,000 $ 100
or through banks, brokers and (non-retirement)
other investment representatives. Retirement (IRA) $ 100 $ 50
Certain investment representatives Automatic
may charge additional fees and Investment Plan $ 250 $ 25
may require higher minimum
investments or impose other All purchases must be in U.S. dollars.
limitations on buying and A fee will be charged for any checks that
selling shares. If you do not clear. Third-party checks are not
purchase shares through an accepted.
investment representative,
that party is responsible for A Fund may waive the minimum purchase
transmitting orders in a requirements and may reject any purchase
timely manner and may have order in whole or in part.
an earlier cut-off time for
purchase and sale requests.
Consult your investment
representative for specific
information.
Avoid 31% Tax Withholding
A Fund is required to withhold 31% of taxable dividends, capital gains
distributions and redemptions paid to shareholders who have not provided the
Fund with their certified taxpayer identification number in compliance with IRS
rules. To avoid this, make sure you provide your correct Tax Identification
Number (Social Security Number for most investors) on your account application.
<PAGE>
SHAREHOLDER INFORMATION
INSTRUCTIONS FOR OPENING OR ADDING TO AN ACCOUNT
If purchasing through an investment representative, simply tell your
representative that you wish to purchase shares of the Funds and he or she will
take care of the necessary documentation. For all other purchases, follow the
instructions below.
BY REGULAR MAIL
Initial Investment:
1. Carefully read and complete the account application. Establishing your
account privileges now saves you the inconvenience of having to add them
later.
2. Make check, bank draft or money order payable to "ISG Funds"
3. Mail to: ISG Funds, c/o BISYS Fund Services
P. O. Box 182239
Columbus, Ohio 43218-2239
Subsequent Investment:
1. Use the investment slip attached to your account statement.
Or, if unavailable,
2. Include the following information on a piece of paper:
o ISG Funds/Fund name
o Share class
o Amount invested
o Account name
o Account number
Include your account number on your check.
3. Mail to: ISG Funds, c/o BISYS Fund Services
P. O. Box 182239
Columbus, Ohio 43218-2239
BY OVERNIGHT SERVICE
See instructions 1-2 above for subsequent investments.
Send to: ISG Funds, c/o BISYS Fund Services
Attn: T.A. Operations
3435 Stelzer Road
Columbus, Ohio 43219
ELECTRONIC PURCHASES
Your bank must participate in the Automated Clearing House (ACH) and must be a
U.S. bank. Your bank or broker may charge for this service.
<PAGE>
Establish an electronic purchase option on your account application or call
1-800-852-0045. Your account can generally be set up for electronic purchases
within 15 days.
Call 1-800-852-0045 to arrange a transfer from your bank account.
SHAREHOLDER INFORMATION
PURCHASING AND ADDING TO YOUR SHARES - CONTINUED
ELECTRONIC VS. WIRE TRANSFER
Wire transfers allow financial institutions to
send funds to each other, almost instantaneously.
With an electronic purchase or sale, the
transaction is made through the Automated Clearing
House (ACH) and may take up to eight days to clear.
There is generally no fee for ACH transactions.
BY WIRE TRANSFER
NOTE: YOUR BANK MAY CHARGE A WIRE TRANSFER FEE.
For initial investment:
Call 1-800-852-0045 to receive a confirmation number and to obtain instructions
on faxing the completed account application. Follow the instructions below after
receiving your confirmation number.
For initial and subsequent investments:
Instruct your bank to wire transfer your investment to:
The Bank of New York
Routing Number: ABA # 021 000 018
DDA # 890 027 5758
Include:
Your name
Your confirmation number
After instructing your bank to wire the funds, call 1-800-852-0045 to advise us
of the amount being transferred and the name of your bank
You can add to your account by using the convenient options described below. The
Funds reserve the right to change or eliminate these privileges at any time with
60 days' notice.
<PAGE>
SHAREHOLDER INFORMATION
PURCHASING AND ADDING TO YOUR SHARES - CONTINUED
AUTOMATIC INVESTMENT PLAN Directed Dividend Option
You can make automatic investments By selecting the appropriate
in the Funds from your bank account, box in the account application,
through payroll deduction or from your you can elect to receive your
federal employment, Social Security or your distributions (capital
other regular government checks. gains and dividends) in cash
Automatic investments can be as little (check) or have them reinvested
as $25, once you've invested the in another ISG Fund without a
$250 minimum required to open the account. a sales charge. You must
maintain the minimum balance in
To invest regularly from your bank account each Fund into which you plan to
reinvest distributions or the
o Complete the Automatic Investment Plan reinvestment will be suspended
portion on your Account application. and your distributions paid to
Make sure you note: you. The Fund may modify or
o Your bank name, address and account terminate this reinvestment
number option without notice. You can
o The amount you wish to invest change or terminate your
automatically (minimum $25) participation in the reinvest-
o How often you want to invest ment option at any time.
(every month, 4 times a year,
twice a year or once a year)
o Attach a voided personal check.
To invest regularly from your paycheck or government check:
Call 1-800-852-0045 for an enrollment form.
- ------------------------------------------------------------------------------
AUTOMATICALLY THROUGH "SWEEP" PROGRAMS--Certain investor accounts may be
eligible for an automatic investment privilege, commonly called a "sweep," under
which amounts in excess of a certain minimum held in these accounts will be
invested automatically in Class A shares at predetermined intervals at the next
determined NAV. Investors desiring to use this privilege should consult their
investment representative to determine if it is available and whether any
conditions are imposed on its use.
<PAGE>
SHAREHOLDER INFORMATION
SELLING YOUR SHARES
You may sell your shares at any time. WITHDRAWING MONEY FROM YOUR FUND
Your sales price will be the next NAV INVESTMENT
after your sell order is received by
the Fund, its transfer agent, or your As a mutual fund shareholder, you
investment representative. Normally are technically selling shares when
you will receive your proceeds within you request a withdrawal in cash.
a week after your request is received. This is also known as redeeming
See section on "General Policies on shares or a redemption of shares.
Selling Shares" below.
INSTRUCTIONS FOR SELLING SHARES
If you are selling your shares
through your financial adviser or
broker, ask him or her for
redemption procedures. Your
adviser and/or broker may have
transaction minimums and/or
transaction times which will affect
your redemption. For all other
sales transactions, follow the
instructions below.
By telephone 1. Call 1-800-852-0045 with
(UNLESS YOU HAVE DECLINED instructions as to how you wish
TELEPHONE SALES PRIVILEGES) to receive your funds (mail,
wire electronic transfer). See
"General Policies on Selling
Shares--Verifying Telephone
Redemptions" below)
- -------------------------------------------------------------------------------
By mail 1. Call 1-800-852-0045 to request
redemption forms or write a
letter of instruction
indicating:
o your Fund and account number
o amount you wish to redeem
o address where your check should
be sent
o account owner signature
2. Mail to:
ISG Funds
c/o BISYS Fund Services, Inc.
P. O. Box 182239
Columbus, Ohio 43218-2239
- -------------------------------------------------------------------------------
By overnight service See instruction 1 above.
(See "General Policies on 2. Send to
Selling Shares--Redemptions ISG Funds
in Writing Required" below) c/o BISYS Fund Services, Inc.
Attn: T.A. Operations
3435 Stelzer Road
Columbus, Ohio 43219
SHAREHOLDER INFORMATION
SELLING YOUR SHARES - CONTINUED
Wire transfer Call 1-800-852-0045 to request a wire
YOU MUST INDICATE THIS OPTION transfer.
ON YOUR APPLICATION. If you call by 4 p.m. Eastern time, your
payment will normally be wired to your
bank on the next business day.
The Fund may charge a wire
transfer fee.
Note: Your financial institution
may also charge a separate fee.
- -------------------------------------------------------------------------------
Electronic Redemptions Call 1-800-852-0045 to request an
electronic redemption.
Your bank must participate in If you call by 4 p.m. Eastern time, the
the Automated Clearing House NAV of your shares will normally be
(ACH) and must be a U.S. determined on the same day and the
bank. proceeds credited within 8 days.
Your bank may charge for this service.
SYSTEMATIC WITHDRAWAL PLAN
You can receive automatic payments from your account on a monthly, quarterly,
semi-annual or annual basis. The minimum withdrawal is $25. To activate this
feature: o Make sure you've checked the appropriate box on the account
application. Or call 1-800-852-0045.
o Include a voided personal check.
o Your account must have a value of $5,000 or more to start withdrawals.
o If the value of your account falls below $500, you may be asked to add
sufficient funds to bring the account back to $500, or the Fund may close
your account and mail the proceeds to you.
<PAGE>
SHAREHOLDER INFORMATION
SELLING YOUR SHARES - CONTINUED
REDEMPTION BY CHECK WRITING - PRIME AND TAX-EXEMPT MONEY MARKET FUNDS ONLY
You may write checks in amounts of $500 or more on your account in the Prime or
Tax-Exempt Money Market Fund. To obtain checks, complete the signature card
section of the account application or contact the Fund to obtain a signature
card. Dividends and distributions will continue to be paid up to the day the
check is presented for payment. The check writing feature may be modified or
terminated upon 30-days' written notice. You must maintain the minimum required
account balance in Class A shares of the Prime or Tax-Exempt Money Market Fund
of $500 and you may not close your Fund account by writing a check.
GENERAL POLICIES ON SELLING SHARES
REDEMPTIONS IN WRITING REQUIRED
You must request redemption in writing in the following situations:
1. Redemptions from Individual Retirement Accounts ("IRAs").
2. Redemption requests requiring a signature guarantee which include each of the
following.
o Redemptions over $10,000
o Your account registration or the name(s) in your account has changed
within the last 15 days
o The check is not being mailed to the address on your account
o The check is not being made payable to the owner of the account
o The redemption proceeds are being transferred to another Fund account with
a different registration.
A signature guarantee can be obtained from a financial institution, such
as a bank, broker-dealer, or credit union, or from members of the STAMP
(Securities Transfer Agents Medallion Program), MSP (New York Stock
Exchange Signature Program) or SEMP (Stock Exchanges Medallion Program).
Members are subject to dollar limitations which must be considered when
requesting their guarantee. The transfer agent may reject any signature
guarantee if it believes the transaction would otherwise be improper.
VERIFYING TELEPHONE REDEMPTIONS
The Fund makes every effort to insure that telephone redemptions are only made
by authorized shareholders. All telephone calls are recorded for your protection
and you will be asked for information to verify your identity. Given these
precautions, unless you have specifically indicated on your application that you
do not want the telephone redemption feature, you may be responsible for any
fraudulent telephone orders. If appropriate precautions have not been taken, the
transfer agent may be liable for losses due to unauthorized transactions.
<PAGE>
SHAREHOLDER INFORMATION
SELLING YOUR SHARES - CONTINUED
REDEMPTIONS WITHIN 15 DAYS OF INITIAL INVESTMENT
Before selling recently purchased shares, please note that if your initial
investment was by check, the Fund may delay sending you the proceeds until the
transfer agent is satisfied that the check has cleared (which may require up to
15 business days). You can avoid this delay by purchasing shares with a
certified check.
REFUSAL OF REDEMPTION REQUEST
Payment for shares may be delayed under extraordinary circumstances or as
permitted by the SEC in order to protect remaining shareholders.
REDEMPTION IN KIND
The Fund reserves the right to make payment in securities rather than cash,
known as "redemption in kind." This could occur under extraordinary
circumstances, such as a very large redemption that could affect Fund operations
(for example, more than 1% of the Fund's net assets). If the Fund deems it
advisable for the benefit of all shareholders, redemption in kind will consist
of securities equal in market value to your shares. When you convert these
securities to cash, you might have to pay brokerage charges.
CLOSING OF SMALL ACCOUNTS
If your account falls below $500, the Fund may ask you to increase your balance.
If it is still below $500 after 45 days, the Fund may close your account and
send you the proceeds at the current NAV.
UNDELIVERABLE REDEMPTION CHECKS
For any shareholder who chooses to receive distributions in cash:
If distribution checks (1) are returned and marked as "undeliverable" or (2)
remain uncashed for six months, your account will be changed automatically so
that all future distributions are reinvested in your account. Checks that remain
uncashed for six months will be canceled and the money reinvested in the Fund.
<PAGE>
SHAREHOLDER INFORMATION
EXCHANGING YOUR SHARES
INSTRUCTIONS FOR EXCHANGING SHARES
You can exchange your shares in Exchanges may be made by sending a written
one Fund for shares of the same request to ISG Funds, c/o BISYS Fund
class of another ISG Fund, Services, Inc., P.O.Box 182239, Columbus
usually without paying additional Ohio 43218-2239, or by calling 1-800-852-
sales charges (see "Notes" below). 0045. Please provide the following
No transaction fees are charged information:
for exchanges.
You must meet the minimum investment o Your name and telephone number
requirements for the Fund into o The exact name on your account and
which you are exchanging. account number
Exchanges from one Fund to another o Taxpayer identification number (usually
are taxable. your Social Security number)
o Dollar value or number of shares to be
exchanged
o The name of the Fund from which the
exchange is to be made
o The name of the Fund into which the
exchange is being made.
See "Selling your Shares" for important
information about telephone transactions.
IMPORTANT INFORMATION ABOUT EXCHANGES. If
shares of the Fund are purchased by check,
those shares cannot be exchanged until the
check has cleared. This could take 15 days or
more. The Fund may reject an exchange request
from a shareholder who has made more than
five exchanges between investment portfolios
offered by Fund management in a year, or more
than three exchanges in a calendar quarter.
Although unlikely, the Funds may reject any
exchanges or, upon 60-days' notice to
shareholders, change or terminate the
exchange privilege. The exchange privilege is
available only in states where shares of the
new Fund may be sold.
AUTOMATIC EXCHANGES NOTES ON EXCHANGES
You can use the Funds' Automatic
Exchange feature to purchase When exchanging from a Fund that
shares of other ISG Funds at regular has no sales charge or a lower
intervals through regular, automatic sales charge to a Fund with a higher
redemptions from the Funds. sales charge, you will pay the
To participate in the difference.
Automatic Exchange:
o Complete the appropriate The registration and tax identifica-
section of the account application. tion numbers of the two accounts
o Keep a minimum of $10,000 in the must be identical.
Fund and $1,000 in the other
ISG Fund whose shares you are buying. The Exchange Privilege (including
automatic exchanges) may be changed
To change the Automatic Exchange or eliminated at any time upon 60
instructions or to discontinue the days' notice to shareholders.
feature, you must send a written
request to ISG Funds, c/o BISYS Fund Be sure to read the prospectus
Services, Inc., P.O. carefully of any Fund into which
Box 182239, Columbus, Ohio 43218-2239. you wish to exchange shares.
<PAGE>
SHAREHOLDER INFORMATION
DIVIDENDS, DISTRIBUTIONS AND TAXES
All dividends and distributions will be automatically reinvested in Fund shares
unless you request otherwise. There are no sales charges for reinvested
dividends and distributions. Capital gains, if any, are distributed at least
annually.
Each Fund usually pays its shareholders dividends from its net investment income
monthly.
Dividends paid by a Fund (other than the tax-exempt fund) are taxable to U.S.
shareholders as ordinary income (unless your investment is in an IRA or
tax-advantaged account). The Tax-Exempt Money Market Fund anticipates that,
under normal market conditions, substantially all of its income dividends will
be exempt from Federal personal income taxes. However, any dividends from
taxable investments are taxable as ordinary income.
Except for tax-deferred accounts, any sale or exchange of Fund shares may
generate a tax liability. Of course, withdrawals or distributions from
tax-deferred accounts are taxable when received.
Dividends are taxable in the year in which they are paid, even if they appear on
your account statement the following year. Dividends and distributions are
treated in the same manner for Federal income tax purposes whether you receive
them in cash or in additional shares.
DISTRIBUTIONS ARE MADE ON A PER SHARE BASIS REGARDLESS OF HOW LONG YOU'VE OWNED
YOUR SHARES. THEREFORE, IF YOU INVEST SHORTLY BEFORE THE DISTRIBUTION DATE, SOME
OF YOUR INVESTMENT WILL BE RETURNED TO YOU IN THE FORM OF A DISTRIBUTION.
You will be notified in January each year about the Federal tax status of
distributions made by the Fund. Depending on your residence for tax purposes,
distributions also may be subject to state and local taxes, including
withholding taxes.
Foreign shareholders may be subject to special withholding requirements. There
is a penalty on certain pre-retirement distributions from retirement accounts.
Because everyone's tax situation is unique, you should consult your tax
professional about Federal, state and local tax consequences.
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand the Funds'
financial performance for the fiscal periods indicated. Certain information
reflects financial results for a single Fund share. The total returns in the
tables represent the rate that an investor would have earned (or lost) on an
investment in the Fund, assuming reinvestment of all dividends and
distributions. The information in the financial highlights has been audited by
KPMG LLP, the Funds' independent auditors, whose report, along with the Funds'
financial statements, are included in the annual report, which is available upon
request. No financial information is provided for shares of Tax-Exempt Money
Market Fund which had not been offered as of December 31, 1998.
<PAGE>
<TABLE>
<CAPTION>
PRIME MONEY MARKET FUND
FINANCIAL HIGHLIGHTS, CLASS A SHARES
YEAR YEAR YEAR YEAR PERIOD
ENDED ENDED ENDED ENDED ENDED
DECEMBER DECEMBER DECEMBER DECEMBER DECEMBER
31, 31, 31, 31, 31,
1998 1997 1996 1995 1994 (A)
---------- ------------- ------------- ------------ -------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ------------- ------------- ------------ -------------
Investment Activities
Net investment income 0.047 0.048 0.048 0.054 0.031
---------- ------------- ------------- ------------- -------------
Total from Investment Activities 0.047 0.048 0.048 0.054 0.031
---------- ------------- ------------- ------------- -------------
Distributions
Net investment income (0.047) (0.048) (0.048) (0.054) (0.031)
---------- ------------- ------------- ------------- -------------
Total Distributions (0.047) (0.048) (0.048) (0.054) (0.031)
---------- ------------- ------------- ------------- -------------
Net change in asset value - - - - -
---------- ------------- ------------- ------------- -------------
Net Asset Value, End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
========== ============= ============= ============= =============
TOTAL RETURN 4.85% 4.90% 4.88% 5.51% 3.13%(b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000) $ 310,201 $ 56,163 $22,836 $ 63,919 $ 82,351
Ratio of expenses to average net assets 0.81% 0.87% 0.68% 0.65% 0.63%(c)
Ratio of net investment income to average net assets 4.73% 4.82% 4.83% 5.37% 4.00%(c)
Ratio of expenses to average net assets* 0.82% (d) 0.86% 0.90% 0.93%(c)
- ---------------
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH
VOLUNTARY FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS
INDICATED.
(a) FOR THE PERIOD MARCH 29, 1994 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1994.
(b) NOT ANNUALIZED.
(c) ANNUALIZED.
(d) THERE WERE NO FEE REDUCTIONS IN THIS PERIOD.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TREASURY MONEY MARKET FUND
- --------------------------------------------------------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS, CLASS A SHARES
- --------------------------------------------------------------------------------------------------------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1998 1997 1996 1995 1994 (A)
---------------- -------------- ------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------------- -------------- ------------- -------------- ----------------
Investment Activities
Net investment income 0.046 0.047 0.047 0.053 0.030
---------------- -------------- ------------- -------------- ----------------
Total from Investment Activities 0.046 0.047 0.047 0.053 0.030
---------------- -------------- ------------- -------------- ----------------
Distributions
Net Investment income (0.046) (0.047) (0.047) (0.053) (0.030)
---------------- -------------- ------------- -------------- ----------------
Total Distributions (0.046) (0.047) (0.047) (0.053) (0.030)
---------------- -------------- ------------- -------------- ----------------
Net change in asset value - - - - -
---------------- -------------- ------------- -------------- ----------------
Net Asset Value, End of Period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
================ ============== ============= ============== ================
TOTAL RETURN 4.68% 4.78% 4.78% 5.41% 3.01% (b)
RATIOS/SUPPLEMENTAL DATA:
Net Assets at end of period (000) $ 167,475 $ 77,065 $78,308 $168,430 $139,715
Ratio of expenses to average net assets 0.77% 0.75% 0.56% 0.50% 0.54% (c)
Ratio of net investment income to average 4.56% 4.68% 4.72% 5.28% 4.02% (c)
net assets
Ratio of expenses to average net assets* 0.78% (d) 0.74% 0.75% 0.83% (c)
- --------------
* DURING THE PERIOD, CERTAIN FEES WERE VOLUNTARILY REDUCED. IF SUCH VOLUNTARY
FEE REDUCTIONS HAD NOT OCCURRED, THE RATIO WOULD HAVE BEEN AS INDICATED.
(a) FOR THE PERIOD FROM MARCH 29, 1994 (COMMENCEMENT OF OPERATIONS) THROUGH
DECEMBER 31, 1994.
(b) NOT ANNUALIZED.
(c) ANNUALIZED.
(d) THERE WERE NO FEE REDUCTIONS IN THIS PERIOD.
</TABLE>
<PAGE>
For more information about the Funds, the following documents are available free
upon request:
ANNUAL/SEMI-ANNUAL REPORTS (REPORTS):
The Funds' annual and semi-annual reports to shareholders contain additional
information on the Funds' investments. In the annual report, you will find a
discussion of the market conditions and investment strategies that significantly
affected the Fund's performance during its last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION (SAI):
The SAI provides more detailed information about the Funds, including its
operations and investment policies. It is incorporated by reference and is
legally considered a part of this prospectus.
- -------------------------------------------------------------------------------
YOU CAN GET FREE COPIES OF REPORTS AND THE SAI, OR REQUEST OTHER INFORMATION AND
DISCUSS YOUR QUESTIONS ABOUT THE FUNDS BY CONTACTING THE FUNDS AT:
ISG FUNDS
3435 STELZER ROAD
COLUMBUS, OHIO 43219
TELEPHONE: 1-800-852-0045
- -------------------------------------------------------------------------------
You can review information about the Funds, including the Funds' Reports and
SAI, at the Public Reference Room of the Securities and Exchange Commission.
You can get text-only copies:
o For a fee, by writing the Public Reference Section of the Commission,
Washington, D.C. 20549-6009, or calling 1-800-SEC-0330.
o Free from the Commission's Website at http://www.sec.gov.
Investment Company Act file no. 811-06076.
