P*I*C PINNACLE
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GROWTH FUND*BALANCED FUND
SMALL COMPANY GROWTH FUND
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SUPPLEMENT dated May 15, 1998 to Prospectus dated March 2, 1998.
The Board of Trustees of PIC Investment Trust has approved the addition
of front-end sales charges to Pinnacle Balanced, Pinnacle Growth and Pinnacle
Small Company Growth Funds' (collectively, the "Pinnacle Funds").
The Board of Trustees has also approved the implementation of a
Shareholder Services Plan (the "Services Plan") under which PIC will provide, or
arrange for others to provide, certain specified shareholder services. As
compensation for the provision of shareholder services, each Fund will pay PIC a
monthly fee at an annual rate up to 0.15% of the Fund's average daily net
assets. PIC will pay certain banks, trust companies, broker-dealers, and other
financial intermediaries (each, a "Participating Organization") out of the fees
PIC receives from the Funds under the Services Plan to the extent that the
Participating Organization performs shareholder servicing functions for Fund
shares owned by its customers.
The Funds' new fee structure, including the Services Plan fee, is made up of the
following components, each based on average annual net assets. PIC has agreed
not to increase its limit on the Fund's expense ratio to average net assets with
the addition of the Services Plan fee.2 The expense limitation may be terminated
or revised at any time without notice.
PIC retains the ability to be repaid by a Fund if expenses subsequently fall
below the specified limit within the next three years.
Pinnacle
Small
Pinnacle Pinnacle Company
Balanced Growth Growth
Fund Fund Fund
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Shareholder
Transaction Expenses:
Maximum sales charge on
purchases (as a
percentage of offering
price) 5.75% 5.75% 5.75%
Sales charge on
reinvested dividends None None None
Deferred sales charge (as
a percentage of original
purchase price or
redemption proceeds,
whichever is lower) None None None
Redemption fee None(1) None None
Annual operating
expenses (as a
percentage of average
net assets):
Management fee (paid by
the Portfolio) 0.60% 0.80% 0.80%
Other expenses of the
Portfolio, after
reimbursement by PIC 0.20% 0.20% 0.20%
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Total operating expenses
of the Portfolio 0.80% 1.00% 1.00%
Administrative fee paid
by Fund to PIC(2) 0.00% 0.00% 0.15%
Shareholder Services Plan 0.00% 0.10% 0.15%
fee(2)
12b-1 fee 0.25% 0.25% 0.25%
Other expenses of the
Fund, after reimbursement 0.00% 0.00% 0.00%
by PIC(2) ------------------------------------
Total Fund operating 1.05% 1.35% 1.55%
expenses(2)
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(1) Shareholders who buy $1 million in shares without paying a shares
charge will be charged a 1% fee on redemptions made within one year of purchase.
(2) PIC has agreed to reimburse each Fund and Portfolio for investment
advisory fees and other expenses so that their ratio of total operating expenses
to average net assets will not exceed the following levels: Pinnacle Balanced
Fund - 1.05%; Pinnacle Growth Fund - 1.35%; Pinnacle Small Company Growth Fund -
1.55%. Absent such reimbursement, the total fund operating expenses is estimated
to be 1.55%, 1.75% and 1.75%, respectively.
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Examples: Let's say, hypothetically, that each Fund's annual return is 5% and
that its operating expenses are exactly as just described. For every $1,000 you
invest, here's how much you would pay in total expenses if you close your
account after the number of years indicated:
Pinnacle
Pinnacle Pinnacle Small
Balanced Growth Company
Fund Fund Growth Fund
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1 year $68 $70 $72
3 years $89 $98 $104
5 years $112 $127 $137
10 years $178 $211 $231
The above examples illustrate the effect of expenses, but they are not meant to
suggest actual or expected costs or returns, all of which may vary.
HOW SALES CHARGES ARE CALCULATED
Sales charges are as follows:
- -------------------- ----------- ------------ -------------
Dealer
As a % commission
of As a % as a % of
offering of your offering
Your investment price investment price
- -------------------- ----------- ------------ -------------
Up to $49,999 5.75% 6.10% 5.00%
- -------------------- ----------- ------------ -------------
$50,000 - $99,999 4.50% 4.71% 3.75%
- -------------------- ----------- ------------ -------------
$100,000 - $249,999 3.50% 3.63% 2.75%
- -------------------- ----------- ------------ -------------
$250,000 - $499,000 2.50% 2.56% 2.00%
- -------------------- ----------- ------------ -------------
$500,000 - $999,999 2.00% 2.04% 1.60%
- -------------------- ----------- ------------ -------------
$1,000,000 and over None None 1.00%
- -------------------- ----------- ------------ -------------
Investments of $1 million or more have no front-end sales charge. The
Distributor pays a commission of 1% to financial institutions that initiate
purchases of $1 million or more.
SALES CHARGE WAIVERS
Shares of the Funds may be sold at net asset value free of any front-end sales
charge to:
1. current shareholders of the Funds as of June 30, 1998.
2. current or retired directors, trustees, partners officers and employees
of the Trust, the Distributor, PIC and affiliates, certain family
members of the above persons, and trusts or plans primarily for such
persons;
3. current or retired registered representatives of broker-dealers having
sales agreement with the Distributor or full-time employees and their
spouses and minor children and plans of such persons;
4. investors who exchange their shares from an unaffiliated investment
company which has a sales charge, so long as shares are purchased
within 60 days of the redemption;
5. trustees or other fiduciaries purchasing shares for certain retirement
plans of organizations with 50 or more eligible employees;
6. investment advisers and financial planners who place trades for their
own accounts or the accounts of their clients either individually or
through a master account and who charge a management, consulting or
other fee for their services;
7. employee-sponsored benefit plans in connection with purchases of shares
of Funds made as a result of participant- directed exchanges between
options in such a plan;
<PAGE>
8. "wrap accounts" for the benefit of clients of broker-dealers, financial
institutions or financial planners having sales or service agreements
with the Distributor or another broker-dealer or financial institution
with respect to sales of shares of the Funds; and
9. such other persons as are determined by the Board of Trustees (or by
the Distributor pursuant to guidelines established by the Board) to
have acquired shared under circumstances not involving any sales
expense to the Trust or the Distributor.
SALES CHARGE REDUCTIONS
There are several ways you can combine multiple purchases of shares of the
Pinnacle Funds to take advantage of the breakpoints in the sales charge
schedule. These can be combined in any manner.
Accumulation Privilege - lets you add the value of shares of any of the Pinnacle
Funds you and your immediate family already own to the amount of your next
investment for purposes of calculating the sales charge.
Letter of Intent - lets you purchase shares of any Pinnacle Funds over a
13-month period and receive the same sales charge as if all shares had been
purchased at once.
Combination Privilege - lets you combine shares of multiple Pinnacle Funds for
purposes of reducing the sales charge.
To utilize: contact your financial representative or the PIC Funds.
