<PAGE> 1
AMERICAN PERFORMANCE FUNDS
EQUITY FUND
Supplement dated April 19, 2000
to Prospectus dated January 1, 2000
The American Performance EQUITY FUND is adopting a value-oriented
investment strategy. This means that instead of focusing on both large
capitalization value and growth stocks, the Equity Fund will focus exclusively
on medium to large capitalization value stocks. The Equity Fund's INVESTMENT
GOAL and PRINCIPAL INVESTMENT STRATEGY will not change. However, the manner in
which the Equity Fund pursues this goal will change. The adoption of this
strategy will be implemented gradually over the next three months. Please read
the details below.
The following language replaces pages 30 and 31 of the Prospectus.
- --------------------------------------------------------------------------------
THE S&P 500/BARRA
VALUE INDEX:
consists of those stocks in the S&P 500 Index which exhibit "value"
characteristics as measured by a stock's single attribute - its book-to-price
ratio.
As of March 31, 2000, the S&P 500/BARRA Value Index statistics were as follows:
the smallest company had a market value of $391 million, the largest company had
a market value of $269 billion, the mean market value was $15 billion, and the
weighted average market value was $67 billion.
- --------------------------------------------------------------------------------
EQUITY FUND
- --------------------------------------------------------------------------------
INVESTMENT GOAL
Growth of capital and, secondarily, income by investing in U.S. common stocks.
PRINCIPAL INVESTMENT STRATEGY
The Equity Fund seeks growth of capital and, secondarily, income by investing
primarily in a diversified portfolio of common stocks and securities convertible
into common stocks.
To pursue this goal, the Fund invests primarily in equity securities of U.S.
companies with weighted average market values and book-to-price ratios similar
to those of stocks included in the Standard & Poor's 500/BARRA Value Index (S&P
500/BARRA Value Index). The S&P 500/BARRA Value Index includes stocks based on
only one attribute - the book-to-price ratio. However, stocks included in the
S&P 500/BARRA Index and securities to be selected by the manager of the Equity
Fund also exhibit characteristics associated with "value" stocks: lower
price-to-earnings ratios, higher dividend yields, and lower historical and
predicted earnings growth. In addition, although the S&P 500/BARRA Value Index
covers many economic sectors, it tends to have a higher concentration in the
energy and financial service sectors.
The Fund attempts to identify stocks of undervalued companies by employing a
quantitative investment approach whereby individual stocks are ranked according
to various quantitative factors including relative price strength, relative
value, earnings momentum, and earnings estimate revisions. Additional criteria
the manager uses to select particular stocks include industry weightings,
volatility, momentum, size, trading activity, growth, earnings yield, value,
earnings variability, leverage, currency sensitivity, and dividend yield.
Economic conditions may warrant the consideration of other factors when ranking
individual stocks.
In managing the Fund's portfolio, the manager attempts to match the risk
characteristics of the stocks comprising the S&P 500/BARRA Value Index. The Fund
does not seek to match the performance of the S&P 500/BARRA Value Index, nor
does it limit its investments to stocks in that index.
In addition to the securities described above, the Fund may invest in money
market instruments, U.S. Treasury obligations, and other types of equity and
debt securities.
<PAGE> 2
The Fund may, from time to time, take temporary defensive positions that are
inconsistent with the Fund's principal investment strategies in attempting to
respond to adverse market, economic, political, or other conditions. In these
and in other cases, the Fund may not achieve its investment goal.
WHAT ARE THE MAIN RISKS OF INVESTING IN THIS FUND?
Loss of money is a risk of investing in the Fund. In addition, your investment
in the Fund may be subject to the following principal risks:
INVESTMENT STYLE RISK - Investment style risk is the possibility that
returns from value stocks will trail returns from other asset classes
or the overall stock market.
MARKET RISK - Market risk is the possibility that the Fund's
investments in equity securities will decline because of drops in the
stock market. Stock markets tend to move in cycles, with periods of
either rising or falling prices. The value of your investment will go
up or down in response to these movements.
The Fund may trade securities actively, which could increase its
transaction costs (thus lowering performance) and may increase the
amount of taxes that you pay.
For more information about these risks please refer to the section
titled "Investment Practices and Risks."
AN INVESTMENT IN THE FUND IS NOT A DEPOSIT OR AN OBLIGATION OF BANK OF OKLAHOMA,
N.A., ITS AFFILIATES, OR ANY BANK, AND IS NOT INSURED OR GUARANTEED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
