THE PILLAR FUNDS
Commercial Sweep Prospectus
Institutional Select Money Market Fund
U.S. Treasury Securities Money Market Fund (Class I Shares)
Prime Obligation Money Market Fund (Class I Shares)
Supplement dated January 30, 1998
to the Prospectus dated August 12, 1997
The Prospectus, dated August 12, 1997, is hereby amended by the addition of the
following unaudited financial information for (i) the Institutional Select Money
Market Fund for the period July 1, 1997 to December 31, 1997; and (ii) the U.S.
Treasury Securities Money Market Fund (Class I Shares) and Prime Obligation
Money Market Fund (Class I Shares) (collectively, the "Funds") for the period
January 1, 1997 to June 30, 1997.
Financial Highlights
The following table provides unaudited financial highlights for the Funds for
the periods indicated.
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
Institutional U.S. Treasury Prime Obligation
Select Money Securities Money Money Market
Market Fund(1) Market Fund Fund
7/1/97 1/1/97 1/1/97
to to to
12/31/97 6/30/97 6/30/97
-------------- ---------------- ----------------
<S> <C> <C> <C>
Net Asset Value Beginning of Period $1.00 $1.00 $1.00
Net Investment Income $0.03 $0.02 $0.02
Distributions from Net Investment Income $(0.03) $(0.02) $(0.02)
Net Asset Value End of Period $1.00 $1.00 $1.00
Total Return** 2.71% 2.21% 2.41%
Net Assets End of Period (000) $61,522 $543,382 $384,521
Ratio of Expenses to Average Net Assets* 0.30% 0.65% 0.65%
Ratio of Net Income to Average Net Assets * 5.34% 4.42% 4.81%
Ratio of Expenses to Average Net Assets (Excluding Waivers)* 0.35% 0.67% 0.66%
Ratio of Net Income to Average Net Assets (Excluding Waivers)* 5.29% 4.40% 4.80%
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
- ----------
(1) Commenced operations on July 1, 1997.
* Annualized.
** Returns for the periods indicated have not been annualized.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
PIL-A-029-01
<PAGE>
THE PILLAR FUNDS
Prime Obligation Money Market Fund
U.S. Treasury Securities Money Market Fund
Tax-Exempt Money Market Fund
Fixed Income Fund
New Jersey Municipal Securities Fund
Pennsylvania Municipal Securities Fund
Equity Growth Fund
Equity Value Fund
Equity Income Fund
Balanced Fund
International Growth Fund
Class A and Class B Shares
Supplement dated January 30, 1998
to the Prospectus dated April 30, 1997
The Prospectus, dated April 30, 1997, is hereby amended by the addition of the
following unaudited financial information for (i) the Class A Shares of the
Prime Obligation Money Market Fund, U.S. Treasury Securities Money Market Fund,
Tax-Exempt Money Market Fund, New Jersey Municipal Securities Fund and
Pennsylvania Municipal Securities Fund for the period January 1, 1997 to June
30, 1997; and (ii) the Class A and Class B Shares of the Fixed Income Fund,
Equity Growth Fund, Equity Value Fund, Equity Income Fund, Balanced Fund and
International Growth Fund (collectively, the "Funds") for the period January 1,
1997 to June 30, 1997.
Financial Highlights
The following table provides unaudited financial highlights for the Funds for
the period January 1, 1997 to June 30, 1997.
For a Class A share outstanding throughout the period:
<TABLE>
<CAPTION>
U.S.
Prime Treasury Tax- Pennsyl-
Obligation Securities Exempt New Jersey vania Inter-
Money Money Money Fixed Municipal Municipal Equity Equity Equity national
Market Market Market Income Securities Securities Growth Value Income Balanced Growth
Fund Fund Fund Fund Fund Fund Fund Fund(1) Fund Fund Fund
---------- ---------- ------ ------ ---------- ---------- ------ ------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of
Period $ 1.00 $ 1.00 $ 1.00 $10.20 $10.70 $10.17 $10.00 $13.35 $13.35 $11.40 $11.22
Net Investment
Income $ 0.02 $ 0.02 $ 0.01 $ 0.28 $ 0.25 $ 0.21 -- $ 0.08 $ 0.15 $ 0.17 $ 0.07
Realized and
Unrealized Gains
or Losses on
Securities -- -- -- $(0.06) -- $(0.01) $ 0.86 $ 2.20 $ 1.88 $ 1.17 $ 1.07
Distributions
from Net
Investment
Income $(0.02) $(0.02) $(0.01) $(0.28) $(0.23) $(0.21) -- $(0.08) $(0.14) $(0.16) --
Distributions
from Capital
Gains -- -- -- -- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
U.S.
Prime Treasury Tax- Pennsyl-
Obligation Securities Exempt New Jersey vania Inter-
Money Money Money Fixed Municipal Municipal Equity Equity Equity national
Market Market Market Income Securities Securities Growth Value Income Balanced Growth
Fund Fund Fund Fund Fund Fund Fund Fund(1) Fund Fund Fund
---------- ---------- ------ ------ ---------- ---------- ------ ------- ------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset Value
End of Period $ 1.00 $ 1.00 $ 1.00 $10.14 $ 10.72 $10.16 $ 10.86 $ 15.55 $ 15.24 $ 12.58 $12.36
Total Return+/** 2.28% 2.08% 1.37% 2.22% 2.40% 2.02% 8.61% 17.13% 15.29% 11.88% 10.16%
Net Assets End of
Period (000) $14,519 $3,293 $4,350 $4,023 $17,716 $ 342 $ 96 $12,684 $14,914 $ 9,727 $757
Ratio of
Expenses to
Average Net
Assets* 0.90% 0.90% 0.90% 1.05% 1.05% 1.05% 1.05% 1.05% 1.05% 1.05% 1.75%
Ratio of Net
Income to
Average Net
Assets* 4.57% 4.17% 2.76% 5.62% 4.41% 4.20% 0.02% 1.19% 2.14% 2.86% 1.04%
Ratio of
Expenses to
Average Net
Assets
(Excluding
Waivers)* 0.91% 0.92% 0.92% 1.16% 1.17% 1.33% 1.12% 1.30% 1.31% 1.36% 1.95%
Ratio of Net
Income to
Average Net
Assets
(Excluding
Waivers)* 4.56% 4.15% 2.74% 5.51% 4.29% 3.93% (0.05)% 0.94% 1.88% 2.55% 0.84%
Portfolio
Turnover Rate -- -- -- 26.14% 14.01% 39.79% 52.52% 26.77% 22.36% 30.56% 36.32%
Average
Commission
Rate++ -- -- -- -- -- -- $0.0636 $0.0835 $0.0930 $0.1166 $0.0050
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Total Return does not reflect the sales load on Class A Shares.
++ Average commission rate paid per share for security purchases and sales
during the period.
* Annualized.
** Returns are for the period indicated and have not been annualized.
(1) Commenced operations on February 3, 1997. Ratios for this period have been
annualized.
<PAGE>
Financial Highlights
The following table provides unaudited financial highlights for the Fixed Income
Fund, Equity Growth Fund, Equity Value Fund, Equity Income Fund, Balanced Fund
and International Growth Fund for the period January 1, 1997 to June 30, 1997.
Because the Class B Shares of the Prime Obligation Money Market Fund were not
operational as of June 30, 1997, no financial highlights are presented for that
Fund.
For a Class B share outstanding throughout the period:
<TABLE>
<CAPTION>
Equity
Fixed Income Growth Equity Value Equity Income Balanced International
Fund(1) Fund (2) Fund(3) Fund(4) Fund(4) Growth Fund(5)
------------ -------- ------------ ------------- -------- --------------
<S> <C> <C> <C> <C> <C> <C>
Net Asset Value
Beginning of Period $10.11 $ 10.41 $ 14.81 $ 14.34 $ 11.93 $ 11.45
Net Investment Income $ 0.18 $ (0.01) -- $ 0.01 $ 0.01 $ 0.01
Realized and Unrealized
Gains or Losses
on Securities $ 0.07 $ 0.43 $ 0.76 $0.92 $ 0.68 $ 0.91
Distributions from Net
Investment Income $(0.18) -- $ (0.03) $ (0.07) $ (0.08) --
Distributions from
Capital Gains -- -- -- -- -- --
Net Asset Value
End of Period $10.18 $ 10.83 $ 15.54 $ 15.20 $ 12.54 $ 12.37
Total Return+/** 1.29% 4.34% 5.15% 6.51% 5.78% 8.03%
Net Assets
End of Period (000) $ 20 $ 26 $ 899 $ 1,160 $ 510 $ 32
Ratio of Expenses to
Average Net Assets* 1.80% 1.80% 1.80% 1.80% 1.80% 2.50%
Ratio of Net Income to
Average Net Assets* 4.87% (0.78)% 0.15% 1.46% 1.75% 1.93%
Ratio of Expenses to
Average Net Assets
(Excluding Waivers)* 1.87% 2.07% 2.04% 2.04% 2.00% 2.81%
Ratio of Net Income to
Average Net Assets
(Excluding Waivers)* 4.80% (1.05)% (0.09)% 1.22% 1.55% 1.62%
Portfolio Turnover Rate 26.14% 52.52% 26.77% 22.36% 30.56% 36.32%
Average Commission Rate++ -- $0.0636 $0.0835 $0.0930 $0.1166 $0.0050
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Total Return does not reflect the sales load on Class B Shares.
++ Average commission rate paid per share for security purchases and sales
during the period.
* Annualized.
** Returns are for the period indicated and have not been annualized.
(1) Commenced operations on May 16, 1997. Ratios for this period have been
annualized.
(2) Commenced operations on May 21, 1997. Ratios for this period have been
annualized.
(3) Commenced operations on May 12, 1997. Ratios for this period have been
annualized.
(4) Commenced operations on May 8, 1997. Ratios for this period have been
annualized.
(5) Commenced operations on May 7, 1997. Ratios for this period have been
annualized.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
PIL-C-025-01
<PAGE>
THE PILLAR FUNDS
U.S. Treasury Securities Money Market Fund
Prime Obligation Money Market Fund
Tax-Exempt Money Market Fund
Fixed Income Fund
New Jersey Municipal Securities Fund
Pennsylvania Municipal Securities Fund
Intermediate-Term Government Securities Fund
Equity Growth Fund
Equity Value Fund
Equity Income Fund
Mid Cap Fund
Balanced Fund
International Growth Fund
Class I Shares
Supplement dated January 30, 1998
to the Prospectus dated April 30, 1997
The Prospectus, dated April 30, 1997, is hereby amended by the addition of the
following unaudited financial information for the Class I Shares of the U.S.
Treasury Securities Money Market Fund, Prime Obligation Money Market Fund,
Tax-Exempt Money Market Fund, Fixed Income Fund, New Jersey Municipal Securities
Fund, Pennsylvania Municipal Securities Fund, Intermediate-Term Government
Securities Fund, Equity Growth Fund, Equity Value Fund, Equity Income Fund, Mid
Cap Fund, Balanced Fund and International Growth Fund (collectively, the
"Funds") for the period January 1, 1997 to June 30, 1997.
Financial Highlights
The following table provides unaudited financial highlights for the Funds for
the period January 1, 1997 to June 30, 1997.
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
Inter-
U.S. Prime New mediate-
Treasury Obli- Tax- Jersey Pennsyl- Term
Securities gation Exempt Muni- vania Govern-
Money Money Money Fixed cipal Municipal ment Equity Equity Equity
Market Market Market Income Securities Securities Securities Growth Value Income
Fund Fund Fund Fund Fund Fund Fund Fund(1) Fund Fund
---------- ------ ------ ------ ---------- ---------- ---------- ------- ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net Asset
Value
Beginning
of Period $ 1.00 $ 1.00 $ 1.00 $10.21 $10.71 $10.17 $10.16 $10.00 $13.35 $ 13.32
Net
Investment
Income $ 0.02 $ 0.02 $ 0.01 $ 0.30 $ 0.24 $ 0.22 $ 0.28 $ 0.01 $ 0.10 $ 0.16
Realized and
Unrealized
Gains or
Losses on
Securities -- -- -- $(0.04) $ 0.04 $ 0.02 $(0.01) $ 0.84 $ 2.20 $ 1.89
Distributions
from Net
Investment
Income $(0.02) $(0.02) $(0.01) $(0.30) $(0.24) $(0.22) $(0.28) $(0.01) $(0.10) $ (0.16)
<CAPTION>
Inter-
Mid national
Cap Balanced Growth
Fund Fund Fund
------ -------- --------
<S> <C> <C> <C>
Net Asset
Value
Beginning
of Period $13.33 $11.39 $11.23
Net
Investment
Income $ 0.04 $ 0.18 $ 0.08
Realized and
Unrealized
Gains or
Losses on
Securities $ 0.77 $ 1.17 $ 1.08
Distributions
from Net
Investment
Income $(0.04) $(0.18) --
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Inter-
U.S. Prime New mediate-
Treasury Obli- Tax- Jersey Pennsyl- Term
Securities gation Exempt Muni- vania Govern-
Money Money Money Fixed cipal Municipal ment Equity Equity
Market Market Market Income Securities Securities Securities Growth Value
Fund Fund Fund Fund Fund Fund Fund Fund(1) Fund
---------- -------- ------- -------- --------- ---------- ---------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Distributions
from Capital
Gains -- -- -- -- -- -- -- -- --
Net Asset
Value End of
Period $ 1.00 $ 1.00 $ 1.00 $ 10.17 $ 10.75 $ 10.19 $ 10.15 $ 10.84 $ 15.55
Total
Return** 2.21% 2.41% 1.50% 2.55% 2.72% 2.43% 2.74% 8.53% 17.27%
Net Assets
End of
Period (000) $543,382 $384,521 $67,426 $255,331 $128,852 $40,735 $32,619 $189,397 $236,917
Ratio of
Expenses to
Average Net
Assets* 0.65% 0.65% 0.65% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80%
Ratio of Net
Income to
Average Net
Assets* 4.42% 4.81% 3.00% 5.96% 4.82% 4.53% 5.68% 0.29% 1.49%
Ratio of
Expenses to
Average Net
Assets
(Excluding
Waivers)* 0.67% 0.66% 0.68% 0.91% 0.91% 0.98% 0.97% 1.04% 1.06%
Ratio of Net
Income to
Average Net
Assets
(Excluding
Waivers)* 4.40% 4.80% 2.97% 5.85% 4.71% 4.35% 5.51% 0.05% 1.23%
Portfolio
Turnover
Rate -- -- -- 26.14% 14.01% 39.79% 36.71% 52.52% 26.77%
Average
Commission
Rate+ -- -- -- -- -- -- -- $ 0.0636 $ 0.0835
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
Inter-
Equity Mid national
Income Cap Balanced Growth
Fund Fund Fund Fund
-------- ------- -------- --------
<S> <C> <C> <C> <C>
Distributions
from Capital
Gains -- -- -- --
Net Asset
Value End of
Period $ 15.21 $ 14.10 $ 12.56 $ 12.39
Total
Return** 15.47% 6.07% 11.95% 10.33%
Net Assets
End of
Period (000) $113,372 $46,358 $23,525 $16,458
Ratio of
Expenses to
Average Net
Assets* 0.80% 0.80% 0.80% 1.50%
Ratio of Net
Income to
Average Net
Assets* 2.48% 0.54% 3.11% 1.36%
Ratio of
Expenses to
Average Net
Assets
(Excluding
Waivers)* 1.06% 1.09% 1.11% 1.70%
Ratio of Net
Income to
Average Net
Assets
(Excluding
Waivers)* 2.22% 0.25% 2.80% 1.16%
Portfolio
Turnover
Rate 22.36% 0.00% 30.56% 36.32%
Average
Commission
Rate+ $ 0.0930 $0.0869 $0.1166 $0.0050
- ---------------------------------------------------------------------
</TABLE>
+ Average commission rate paid per share for security purchases and sales
during the period.
* Annualized.
** Returns are for the period indicated and have not been annualized.
(1) Commenced operations on February 3, 1997. Ratios for this period have been
annualized.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
PIL-L-022-01
<PAGE>
THE PILLAR FUNDS
Institutional Select Money Market Fund
Supplement dated January 30, 1998 to the Prospectus dated June 30, 1997
The Prospectus, dated June 30, 1997, is hereby amended by the addition of the
following unaudited financial information for the Institutional Select Money
Market Fund for the period July 1, 1997 to December 31, 1997.
Financial Highlights
The following table provides unaudited financial highlights for the
Institutional Select Money Market Fund for the period July 1, 1997 to
December 31, 1997.
For a share outstanding throughout the period:
Institutional Select
Money Market Fund(1)
--------------------
Net Asset Value Beginning of Period $ 1.00
Net Investment Income $ 0.03
Realized and Unrealized Gains or Losses on Securities --
Distributions from Net Investment Income $ (0.03)
Distributions from Capital Gains --
Net Asset Value End of Period $ 1.00
Total Return 2.71%
Net Assets End of Period (000) $61,522
Ratio of Expenses to Average Net Assets* 0.30%
Ratio of Net Income to Average Net Assets* 5.34%
Ratio of Expenses to Average Net Assets (Excluding Waivers)* 0.35%
Ratio of Net Income to Average Net Assets (Excluding Waivers)* 5.29%
- --------------------------------------------------------------------------------
* Annualized.
** Total return is for the period indicated and has not been annualized.
(1) Commenced operations on July 1, 1997.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
PIL-A-028-01
<PAGE>
THE PILLAR FUNDS
U.S. Treasury Securities Plus Money Market Fund
Supplement dated January 30, 1998
to the Prospectus dated April 30, 1997
The Prospectus, dated April 30, 1997, is hereby amended by the addition of the
following unaudited financial information for the U.S. Treasury Securities Plus
Money Market Fund for the period January 1, 1997 to June 30, 1997.
Financial Highlights
The following table provides audited financial highlights for the U.S. Treasury
Securities Plus Money Market Fund for the period January 1, 1997 to June 30,
1997.
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
U.S. Treasury Securities Plus Money
Market Fund
-----------------------------------
<S> <C>
Net Asset Value Beginning of Period $ 1.00
Net Investment Income $ 0.02
Distributions from Net Investment Income $ (0.02)
Net Asset Value End of Period $ 1.00
Total Return** 2.37%
Net Assets End of Period (000) $71,275
Ratio of Expenses to Average Net Assets* 0.55%
Ratio of Net Income to Average Net Assets* 4.73%
Ratio of Expenses to Average Net Assets (Excluding Waivers)* 0.65%
Ratio of Net Income to Average Net Assets (Excluding Waivers)* 4.63%
- ------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Total return is for the period indicated and has not been annualized.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
PIL-B-024-01
<PAGE>
THE PILLAR FUNDS
Short-Term Investment Fund
GNMA Fund
Class I Shares
Supplement dated January 30, 1998
to the Prospectus dated April 30, 1997
The Prospectus, dated April 30, 1997, is hereby amended by the addition of the
following unaudited financial information for the Class I Shares of the
Short-Term Investment Fund and GNMA Fund (collectively, the "Funds") for the
period January 1, 1997 to June 30, 1997.
Financial Highlights
The following table provides unaudited financial highlights for the Funds for
the period January 1, 1997 to June 30, 1997.
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
Short-Term Investment Fund GNMA Fund
-------------------------- ---------
<S> <C> <C>
Net Asset Value Beginning of Period $ 10.01 $ 9.63
Net Investment Income $ 0.23 $ 0.31
Realized and Unrealized Gains or Losses on Securities $ (0.01) $ 0.03
Distributions from Net Investment Income $ (0.23) $(0.31)
Distributions from Capital Gains -- --
Net Asset Value End of Period $ 10.00 $ 9.66
Total Return** 2.28% 3.60%
Net Assets End of Period (000) $29,036 $6,122
Ratio of Expenses to Average Net Assets* 0.80% 0.80%
Ratio of Net Income to Average Net Assets* 4.72% 6.51%
Ratio of Expenses to Average Net Assets (Excluding Waivers)* 1.06% 1.16%
Ratio of Net Income to Average Net Assets (Excluding Waivers)* 4.46% 6.15%
Portfolio Turnover Rate 0.00% 0.00%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Returns are for the period indicated and have not been annualized.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
PIL-B-023-01
<PAGE>
THE PILLAR FUNDS
Short-Term Investment Fund
Intermediate-Term Government Securities Fund
GNMA Fund
Mid Cap Fund
Class A Shares
Supplement dated January 30, 1998
to the Prospectus dated April 30, 1997
The Prospectus, dated April 30, 1997, is hereby amended by the addition of the
following unaudited financial information for the Class A Shares of the
Short-Term Investment Fund, Intermediate-Term Government Securities Fund, GNMA
Fund and Mid Cap Fund (collectively, the "Funds") for the period January 1, 1997
to June 30, 1997.
Financial Highlights
The following table provides unaudited financial highlights for the Funds for
the period January 1, 1997 to June 30, 1997.
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
Short-Term Intermediate-Term
Investment Government
Fund Securities Fund GNMA Fund Mid Cap Fund
---------- ----------------- --------- ------------
<S> <C> <C> <C> <C>
Net Asset Value Beginning of Period $10.02 $10.16 $ 9.61 $ 13.31
Net Investment Income $ 0.22 $ 0.27 $ 0.31 $ 0.02
Realized and Unrealized Gains or Losses on Securities -- $(0.02) $ 0.02 $ 0.76
Distributions from Net Investment Income $(0.22) $(0.27) $(0.30) $ (0.02)
Distributions from Capital Gains -- -- -- --
Net Asset Value End of Period $10.02 $10.14 $ 9.64 $ 14.07
Total Return+/** 2.25% 2.51% 3.48% 5.86%
Net Assets End of Period (000) $ 943 $1,930 $1,138 $ 4,979
Ratio of Expenses to Average Net Assets* 1.05% 1.05% 1.05% 1.05%
Ratio of Net Income to Average Net Assets* 4.47% 5.39% 6.28% 0.29%
Ratio of Expenses to Average Net Assets
(Excluding Waivers)* 1.31% 1.22% 1.40% 1.34%
Ratio of Net Income to Average Net Assets
(Excluding Waivers)* 4.22% 5.22% 5.93% 0.00%
Portfolio Turnover Rate 0.00% 36.71% 0.00% 0.00%
Average Commission Rate++ -- -- -- $0.0869
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Total Return does not reflect the sales load on Class A Shares.
++ Average commission rate paid per share for security purchases and sales
during the period.
* Annualized.
** Returns are for the period indicated and have not been annualized.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
PIL-B-026-01
<PAGE>
THE PILLAR FUNDS
Retail Sweep Prospectus
U.S. Treasury Securities Money Market Fund (Class A Shares)
Prime Obligation Money Market Fund (Class S Shares)
Tax-Exempt Money Market Fund (Class A Shares)
Supplement dated January 30, 1998
to the Prospectus dated August 12, 1997
The Prospectus, dated August 12, 1997, is hereby amended by the addition of the
following unaudited financial information for (i) the U.S. Treasury Securities
Money Market Fund (Class A Shares) and Tax-Exempt Money Market Fund
(collectively, the "Funds") for the period January 1, 1997 to June 30, 1997.
Because the Class S Shares of the Prime Obligation Money Market Fund were not
operational as of June 30, 1997, no financial highlights are presented for that
Fund.
Financial Highlights
The following table provides unaudited financial highlights for the Funds for
the period January 1, 1997 to June 30, 1997.
For a share outstanding throughout the period:
<TABLE>
<CAPTION>
U.S. Treasury Tax-Exempt
Securities Money Money Market
Market Fund Fund
1/1/97 1/1/97
to to
6/30/97 6/30/97
---------------- -------------
<S> <C> <C>
Net Asset Value Beginning of Period $ 1.00 $ 1.00
Net Investment Income $ 0.02 $ 0.01
Distributions from Net Investment Income $(0.02) $(0.01)
Net Asset Value End of Period $ 1.00 $ 1.00
Total Return** 2.08% 1.37%
Net Assets End of Period (000) $3,293 $4,350
Ratio of Expenses to Average Net Assets* 0.90% 0.90%
Ratio of Net Income to Average Net Assets* 4.17% 2.76%
Ratio of Expenses to Average Net Assets (Excluding Waivers)* 0.92% 0.92%
Ratio of Net Income to Average Net Assets (Excluding Waivers)* 4.15% 2.74%
- -----------------------------------------------------------------------------------------------------
</TABLE>
* Annualized.
** Returns are for the period indicated and have not been annualized.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
PIL-A-030-01
<PAGE>
THE PILLAR FUNDS
(the "Trust")
Supplement dated January 30, 1998 to the Statement of Additional Information
dated April 30, 1997 and supplemented August 12, 1997
The Statement of Additional Information for the Trust is hereby amended and
supplemented by the following unaudited financial statements for the
Institutional Select Money Market Fund for the period ended December 31, 1997.
Additionally, unaudited financial statements for the U.S. Treasury Securities
Plus Money Market, U.S. Treasury Securities Money Market, Prime Obligation Money
Market (Class A and Class I Shares), Tax-Exempt Money Market, Short-Term
Investment, Fixed Income, New Jersey Municipal Securities, Pennsylvania
Municipal Securities, Equity Growth, Equity Value, Equity Income, Balanced,
Intermediate-Term Government Securities, GNMA, Mid Cap, and International Growth
Funds for the period ended June 30, 1997 are incorporated by reference to The
Pillar Funds' Semi-Annual Report to Shareholders dated June 30, 1997.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
PIL-A-027-02
<PAGE>
================================================================================
Statement of Net Assets
As of December 31, 1997 (Unaudited)
INSTITUTIONAL SELECT MONEY MARKET FUND
- --------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------
U.S. GOVERNMENT AGENCY OBLIGATIONS--14.2%
Federal Home Loan Bank (A)
5.520%, 01/23/98 $1,368 $ 1,363
5.860%, 07/30/98 1,000 1,000
5.780%, 08/13/98 1,000 1,000
5.900%, 09/16/98 500 500
5.875%, 10/23/98 1,000 1,000
5.860%, 11/25/98 1,000 1,000
5.910%, 12/18/98 1,000 1,000
Federal Home Loan Mortgage
Corporation
5.700%, 01/22/98 846 843
Federal National Mortgage Association
5.610%, 02/20/98 1,000 992
--------
Total U.S. Government Agency Obligations
(Cost $8,698) 8,698
--------
COMMERCIAL PAPER--56.7%
BANKS--18.4%
Abbey National Bank
5.530%, 01/14/98 1,000 998
Banc One
5.730%, 01/16/98 500 499
5.750%, 02/13/98 1,000 993
Bank of America
5.530%, 01/15/98 1,000 998
Bank of New York
6.000%, 01/15/98 1,000 998
Bankers Trust
5.550%, 01/12/98 1,000 998
5.750%, 03/30/98 1,000 986
Cargill
5.680%, 03/10/98 1,000 989
Centric Funding
5.750%, 01/05/98 400 400
5.730%, 04/08/98 1,000 985
Norwest Financial
5.650%, 01/14/98 1,000 998
Toronto Dominion
5.550%, 01/02/98 500 500
5.660%, 02/19/98 1,000 992
--------
11,334
--------
FINANCIAL SERVICES--19.9%
American Express
5.800%, 01/12/98 1,000 998
Ford Motor Credit
5.670%, 01/05/98 1,000 999
General Electric Capital
5.750%, 01/06/98 500 500
5.700%, 01/13/98 1,000 998
5.600%, 01/14/98 500 499
- --------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------
International Lease
5.550%, 01/13/98 $1,000 $ 998
Merrill Lynch
5.620%, 01/16/98 1,000 998
5.710%, 01/22/98 500 498
5.720%, 03/13/98 500 494
National Rural
5.690%, 03/20/98 1,000 988
5.690%, 04/28/98 500 491
Transamerica
5.850%, 01/07/98 966 965
5.650%, 01/23/98 1,000 997
USAA Capital
5.560%, 01/05/98 800 799
5.630%, 03/20/98 1,000 988
--------
12,210
--------
INDUSTRIAL--12.7%
AHP
5.740%, 02/13/98 1,000 993
Ciesco
5.700%, 01/13/98 1,500 1,497
Colonial Pipe
5.800%, 01/09/98 1,250 1,248
5.650%, 06/10/98 500 487
FPL Fuels
5.780%, 02/05/98 1,000 994
ILFC
5.750%, 01/16/98 1,000 998
PHH
5.650%, 01/30/98 630 627
5.700%, 03/27/98 1,000 987
--------
7,831
--------
UTILITIES--5.7%
Bell Atlantic
5.900%, 01/20/98 1,000 997
5.800%, 01/21/98 1,000 997
BellSouth
5.900%, 01/27/98 500 498
5.700%, 02/09/98 1,000 994
--------
3,486
--------
Total Commercial Paper
(Cost $34,861) 34,861
--------
CORPORATE OBLIGATIONS--2.4%
Ford Capital
9.375%, 01/01/98 1,000 1,000
John Deere (MTN)
5.850%, 10/28/98 500 500
--------
Total Corporate Obligations
(Cost $1,500) 1,500
--------
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2
<PAGE>
[PILLAR LOGO OMITTED]
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- --------------------------------------------------------------
FACE
DESCRIPTION AMOUNT (000) VALUE (000)
- --------------------------------------------------------------
REPURCHASE AGREEMENTS--28.2%
Barclays
6.46%, dated 12/31/97, matures
01/02/98, repurchase price $8,604,821
(collateralized by U.S. Treasury
Note, par value $8,728,000, 5.50%,
matures 11/15/98, market
value $8,774,677) (B) $8,602 $ 8,602
J.P. Morgan
6.46%, dated 12/31/97, matures
01/02/98, repurchase price $8,764,245
(collateralized by U.S. Treasury
Bond, par value $6,256,000, 9.875%,
matures 11/15/15, market value
$8,937,099) (B) 8,761 8,761
--------
Total Repurchase Agreements
(Cost $17,363) 17,363
--------
Total Investments--101.5%
(Cost $62,422) 62,422
--------
OTHER ASSETS AND LIABILITIES, NET--(1.5%) (900)
--------
NET ASSETS:
Portfolio Shares of Class I (unlimited
authorization -- no par value) based
on 61,520,901 outstanding shares
of beneficial interest 61,521
Accumulated net realized gain on investments 1
--------
Total Net Assets--100.0% $ 61,522
========
Net Asset Value, Offering and Redemption
Price Per Share--Class I $ 1.00
========
(A) THE RATE REFLECTED ON THE STATEMENT OF NET ASSETS REPRESENTS
THE SECURITY'S DISCOUNT RATE AT PURCHASE.
(B) TRI-PARTY REPURCHASE AGREEMENT.
MTN -- MEDIUM TERM NOTE
The accompanying notes are an integral part of the financial statements.
================================================================================
3
<PAGE>
================================================================================
Statement of Operations (000)
FOR THE PERIOD ENDED DECEMBER 31, 1997 (Unaudited)
-------------
INSTITUTIONAL
SELECT
MONEY
MARKET
FUND (1)
-------------
INTEREST INCOME: $1,067
-------------
EXPENSES:
Investment advisory fee 19
Less: Investment advisory fee waived (10)
Administration fee 19
Custody fee 5
Transfer agency fee 7
Professional fees 3
Registration fees 12
Printing expense 1
Amortization of deferred
organizational costs 1
-------------
Total expenses, net of waivers 57
-------------
NET INVESTMENT INCOME 1,010
Net realized gain
on investments 1
-------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $1,011
=============
(1) THE INSTITUTIONAL SELECT MONEY MARKET FUND COMMENCED OPERATIONS ON
JULY 1, 1997.
The accompanying notes are an integral part of the financial statements.
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4
<PAGE>
[PILLAR LOGO OMITTED]
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Statement of Changes in Net Assets (000)
FOR THE PERIOD ENDED DECEMBER 31, 1997 (Unaudited)
--------------
INSTITUTIONAL
SELECT MONEY
MARKET FUND (1)
--------------
1997
==============
INVESTMENT ACTIVITIES:
Net investment income $ 1,010
Net realized gain on securities sold 1
Net increase in net assets resulting --------------
from operations 1,011
DISTRIBUTIONS TO SHAREHOLDERS: --------------
Net investment income:
Class I (1,010)
Realized capital gains:
Class I --
--------------
Total distributions (1,010)
--------------
SHARE TRANSACTIONS (ALL AT $1.00 PER SHARE):
Class I:
Shares issued 78,541
Shares issued in lieu of cash distributions 74
Shares redeemed (17,094)
--------------
Net Class I share transactions 61,521
--------------
Increase in net assets from
share transactions 61,521
--------------
Total increase in net assets 61,522
--------------
NET ASSETS:
Beginning of period --
--------------
NET ASSETS:
End of period $ 61,522
==============
(1) THE INSTITUTIONAL SELECT MONEY MARKET FUND COMMENCED OPERATIONS ON
JULY 1, 1997.
The accompanying notes are an integral part of the financial statements.
================================================================================
5
<PAGE>
================================================================================
Financial Highlights (Unaudited)
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
NET ASSET REALIZED AND DISTRIBUTIONS RATIO OF
VALUE NET UNREALIZED FROM NET NET ASSET NET ASSETS EXPENSES
BEGINNING INVESTMENT GAINS OR LOSSES INVESTMENT VALUE END TOTAL END OF TO AVERAGE
OF PERIOD INCOME ON SECURITIES INCOME OF PERIOD RETURN PERIOD (000) NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL SELECT MONEY MARKET FUND (1)
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS I
1997 $1.00 $0.03 -- $(0.03) $1.00 5.48% $ 61,522 0.30%
RATIO OF RATIO OF
RATIO OF EXPENSES NET INCOME
NET TO AVERAGE TO AVERAGE
INCOME NET ASSETS NET ASSETS
TO AVERAGE (EXCLUDING (EXCLUDING
NET ASSETS WAIVERS) WAIVERS)
- ---------------------------------------------
INSTITUTIONAL SELECT MONEY MARKET FUND (1)
- ---------------------------------------------
<S> <C> <C> <C>
CLASSI
1997 5.34% 0.35% 5.29%
<FN>
(1) COMMENCED OPERATIONS ON JULY 1, 1997. ALL RATIOS, INCLUDING TOTAL RETURN, FOR THE PERIOD HAVE BEEN ANNUALIZED.
</FN>
</TABLE>
The accompanying notes are an integral part of the financial statements.
================================================================================
6
<PAGE>
[PILLAR LOGO OMITTED]
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Notes to Financial Statements
As of December 31, 1997 (Unaudited)
1. ORGANIZATION
The Pillar Funds (the "Trust") is registered under the Investment Company Act of
1940, as amended (the "1940 Act"), as an open-end investment company with
seventeen funds: the U.S. Treasury Securities Money Market Fund, the Prime
Obligation Money Market Fund, the Tax-Exempt Money Market Fund, the U.S.
Treasury Securities Plus Money Market Fund, the Institutional Select Money
Market Fund, (the "Money Market Funds") the Short-Term Investment Fund, the
Fixed Income Fund, the New Jersey Municipal Securities Fund, the
Intermediate-Term Government Securities Fund, the Pennsylvania Municipal
Securities Fund, the GNMA Fund, (the "Fixed Income Funds") the Equity Growth
Fund, the Equity Value Fund, the Equity Income Fund, the Mid Cap Fund, the
International Growth Fund (the "Equity Funds") and the Balanced Fund. Each of
the Funds is "diversified" for purposes of the 1940 Act except for the New
Jersey Municipal Securities Fund, the Pennsylvania Municipal Securities Fund and
the International Growth Fund, each of which is a non-diversified Fund. Shares
of the U.S. Treasury Securities Plus Money Market Fund are offered exclusively
to customers of the Money Desk of the Bank Investment Division of Summit Bank.
The minimum investment for this Fund is $100,000. The financial statements
included herein present information relating to Institutional Select Money
Market Fund (the "Fund"). The assets of each Fund are segregated and a
shareholder's interest is limited to the Fund in which shares are held. The
Funds' prospectus provides a description of each fund's investment objectives,
policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed by
the Fund.
SECURITY VALUATION--The value of investment securities held by the Fund are
stated at amortized cost, which approximates market value. Under this valuation
method, purchase discounts and premiums are accreted and amortized ratably to
maturity and are included in interest income.
FEDERAL INCOME TAXES--It is the Fund's intention to qualify as a regulated
investment company for Federal income tax purposes and to distribute all of its
taxable income and net capital gains. Accordingly, no provisions for Federal
income taxes are required.
REPURCHASE AGREEMENTS--Securities pledged as collateral for Repurchase
Agreements are held by the custodian bank until the respective agreements
mature. Provisions of the Repurchase Agreements and procedures adopted by the
Adviser ensure that the market value of the collateral including accrued
interest thereon, is sufficient in the event of default by the counterparty.
If the counterparty defaults and the value of the collateral declines or if the
counterparty enters into an insolvency proceeding, realization of the collateral
by the Fund may be delayed or limited.
SECURITY TRANSACTIONS AND INVESTMENT INCOME--Security transactions are
accounted for on the date the security is purchased or sold (trade date). Costs
used in determining realized gains and losses on the sale of investment
securities are those of the specific securities sold adjusted for the accretion
and amortization of purchase discounts and premiums during the respective
holding periods. Interest income is recorded on the accrual basis.
DISTRIBUTIONS TO SHAREHOLDERS--Distributions from net investment income for
the Fund are declared daily and paid monthly. Any net realized capital gains
will be distributed at least annually for the Fund.
EXPENSES--Expenses that are directly related to one of the Funds are
charged directly to that Fund. Other operating expenses of the Trust are
prorated to the Funds on the basis of relative net asset value. Class specific
expenses, such as the 12b-1 fees, are borne by that class. Income, other
expenses and realized and unrealized gains and losses of the Fund are allocated
to the respective classes on the basis of the relative
net assets each day.
USE OF ESTIMATES--The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that effect the reported amount of assets and
liabilities, disclosure of contingent assets and liabilities at the date of the
financial
================================================================================
7
<PAGE>
================================================================================
Notes to Financial Statements (CONCLUDED)
statements, and reported amounts of revenues and expenses during the reporting
period. Actual amounts could differ from these estimates.
3. ORGANIZATION COSTS AND TRANSACTIONS WITH AFFILIATES
Organizational costs have been capitalized by the Fund and are being amortized
over sixty months commencing with operations. In the event any of the initial
shares of the Fund are redeemed by any holder thereof during the period that the
Fund is amortizing its organizational costs, the redemption proceeds payable to
the holder thereof will be reduced by the unamortized organizational costs in
the same ratio as the number of initial shares being redeemed bears to the
number of initial shares outstanding at the time of redemption.
Certain officers and/or trustees of the Trust are also officers and/or
directors of SEI Fund Resources (the "Administrator"). Such officers are paid no
fees by the Trust for serving as officers of the Trust. The Trust pays each
unaffiliated trustee an annual fee for attendance at quarterly, interim and
committee meetings.
4. ADMINISTRATION AND DISTRIBUTION AGREEMENTS
The Fund and the Administrator are parties to an administration agreement (the
"Agreement"), under which the Administrator provides the Fund with
administrative services for an annual fee that is calculated daily and paid
monthly at an annual rate of 0.10% of the average daily net assets of the Fund.
SEI Investments Distribution Co. (the "Distributor") acts as the
distributor of the Fund's shares. No compensation is paid to the Distributor for
distribution services for shares of the Fund.
5. INVESTMENT ADVISORY AND CUSTODIAN AGREEMENTS
The Fund and Summit Bank Investment Management Division, a division of Summit
Bank, (the "Adviser") are parties to an advisory agreement. Under the terms of
the agreement, the Adviser will receive a fee, that is calculated daily and paid
monthly, at an annual rate of 0.10% of the average daily net assets of the Fund.
The Adviser has voluntarily agreed to waive all or a portion of its fee in order
to limit the operating expenses of the Fund.
Summit Bank also acts as Custodian of securities for the Fund. The
Custodian plays no role in determining the investment policies of the Fund or
which securities are to be purchased or sold by the Fund. For its services, the
Custodian receives a fee, that is calculated daily and paid monthly, at an
annual rate of 0.025% of the average daily net assets of the Fund.
================================================================================
8
