MONARCH FUNDS
PROSPECTUS
September 1, 2000
SERVICE SHARES
Three money market funds that each
seek to provide high current income TREASURY CASH FUND
to the extent consistent with the GOVERNMENT CASH FUND
preservation of capital and the CASH FUND
maintenance of liquidity.
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TABLE OF CONTENTS
Summary..........................2 Your Account...........................6
Performance......................4 Other Information.....................10
Fee Tables.......................5 Financial Highlights..................11
Management.......................5 For More Information..................12
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THE SECURITIES AND EXCHANGE
COMMISSION HAS NOT APPROVED OR
DISAPPROVED THE FUNDS' SHARES
OR DETERMINED WHETHER THIS
PROSPECTUS IS ACCURATE OR COMPLETE.
ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
SERVICE SHARES ARE DESIGNED TO
REPLICATE A STANDARD CHECKING
ACCOUNT OR TO BE USED AS PART
OF A DAILY SWEEP PRODUCT.
SERVICE SHARES INCLUDE
CERTAIN EXPENSES THAT MAKE
THEM INAPPROPRIATE FOR YOU IF
YOU DO NOT INTEND TO USE YOUR
ACCOUNT IN EITHER OF THESE WAYS.
AN INVESTMENT IN A FUND IS NOT
A DEPOSIT OF A BANK AND IS NOT
INSURED OR GUARANTEED BY
THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER
GOVERNMENT AGENCY.
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SUMMARY
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DEFINITIONS This Prospectus offers Service Shares of three money market funds -- Treasury
Cash Fund, Government Cash Fund and Cash Fund (the "Funds"). Service Shares have
Money Market Security a $1,000 minimum initial investment.
means a high credit
quality, short-term, INVESTMENT OBJECTIVES
U.S. dollar denominated
debt security. The investment objective of each Fund is to provide high current income to the
extent consistent with the preservation of capital and the maintenance of
Treasury Security means liquidity.
a security that is issued
or guaranteed by the U.S. PRINCIPAL INVESTMENT STRATEGIES
Treasury.
Each Fund invests in a diversified portfolio of Money Market Securities and:
Government Security means o Seeks to maintain a stable net asset value of $1.00 per share
a security that is issued o Invests in securities with remaining maturities of 397 days or less
or guaranteed by the U.S. o Maintains a dollar weighted average maturity of its investments of 90
Government, its agencies days or less
or instrumentalities.
Each Fund invests substantially all of its assets in another mutual fund (a
Repurchase Agreement means "Portfolio"), which has the same investment objective and substantially similar
a transaction in which investment policies. The Portfolios in which the Funds invest and their primary
securities are purchased and investments are:
simultaneously committed
to be resold to the other FUND/PORTFOLIO PRIMARY INVESTMENTS
party at an agreed-upon date Treasury Cash Fund/ Treasury Securities and Repurchase Agreements
and at a price reflecting a Treasury Cash Portfolio by Treasury Securities
market rate of interest. Government Cash Fund/ Government Securities and Repurchase
Government Cash Portfolio Agreements backed by Government Securities
Cash Fund/ A broad spectrum of Money Market Securities
Cash Portfolio including:
o Securities issued by financial
institutions, such as certificates of
deposits bankers' acceptances and time
deposits
o Securities issued by domestic companies,
such as commercial paper
o Government Securities
o Repurchase Agreements
The investment adviser for each Portfolio (the "Adviser") continuously monitors
economic factors such as interest rate outlooks and technical factors such as
prevailing interest rates and Federal Reserve policy to determine an appropriate
maturity profile for the Portfolio's investments. The Adviser searches for
securities that satisfy the maturity profile of a Portfolio and that provide the
greatest potential return relative to the risk of the security.
The Adviser may sell a security if:
o Revised economic forecasts or interest rate outlook requires a
repositioning of the Portfolio
o The security subsequently fails to meet the Adviser's investment
criteria
o Funds are needed for another purpose
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PRINCIPAL RISKS OF INVESTING IN A FUND
An investment in a Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although each Fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in a Fund.
There is no assurance that any Fund will achieve its investment objective. An
investment in a Fund is not by itself a complete or balanced investment program.
The principal risks of investing in a Fund are described below. These risks can
result in a decrease in the value of a security or all the securities owned by a
Fund and, therefore, a change in the Fund's $1.00 per share value. These risks
also can result in lower investment performance.
You should not invest in the Funds unless you intend to use the checkwriting
privileges or your Fund account is used as part of a daily sweep product.
INTEREST RATE RISK Interest rates affect the value of the Portfolios'
investments. Increases in interest rates may cause a decline in value. In
addition, those increases may cause the Fund's investment performance to
underperform currently available investments.
CREDIT RISK The value of a security held by a Portfolio may decline if the
security's credit rating is downgraded or its credit quality otherwise falls. In
the worst case, an issuer of a security or a Repurchase Agreement counterparty
may default or otherwise be unable to make timely payments of interest or
principal. Not all Government Securities are supported by the full faith and
credit of the U.S. Government.
MANAGEMENT RISK As with all mutual funds, the Adviser may make poor investment
decisions.
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PERFORMANCE
The following charts and table provide some indication of the risks of investing
in a Fund's Service Shares by showing changes in performance from year to year
and investment returns. Because Service Shares have operated less than a year,
the information provided below is for Cash Fund and Treasury Cash Fund's
Investor Shares and Government Cash Fund's Institutional Shares, which are not
offered in this prospectus. Service Shares will invest in the same Portfolio as
these other classes but, the returns for Service Shares will be lower than those
of the other classes because of the higher expenses of Service Shares. To obtain
current yield information, call toll-free (800) 754-8757. Performance
information presented here represents only past performance and does not
necessarily indicate future results.
The following charts show the annual total returns for each full calendar year
that the Funds have operated.
TREASURY CASH FUND (INVESTOR SHARES)
[EDGAR Representation of Bar Chart]
Year Ended 12/31
1996 4.60%
1997 4.65%
1998 4.57%
1999 4.17%
Best Quarter: 1.18% (quarter ended 12/31/97)
Worst Quarter: 0.95% (quarter ended 3/31/99)
The calendar year-to-date total return as of June 30, 2000 was 2.55%.
GOVERNMENT CASH FUND (INSTITUTIONAL SHARES)
[EDGAR Representation of Bar Chart]
Year Ended 12/31
1994 4.01%
1995 5.65%
1996 5.03%
1997 5.15%
1998 5.08%
1999 4.65%
Best Quarter: 1.42% (quarter ended 6/30/95)
Worst Quarter: 0.71% (quarter ended 3/31/94)
The calendar year-to-date total return as of June 30, 2000 was 2.77%.
CASH FUND (INVESTOR SHARES)
[EDGAR Representation of Bar Chart]
Year Ended 12/31
1996 4.78%
1997 4.90%
1998 4.87%
1999 4.49%
Best Quarter: 1.24% (quarter ended 12/31/97)
Worst Quarter: 1.03% (quarter ended 6/30/99)
The calendar year-to-date total return as of June 30, 2000 was 2.67%.
The following table lists the average annual total return as of December 31,
1999.
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ONE YEAR FIVE YEARS SINCE INCEPTION INCEPTION DATE
TREASURY CASH FUND 4.17% N/A 4.52% 10/25/95
GOVERNMENT CASH FUND 4.65% 5.11% 4.78% 7/15/93
CASH FUND 4.49% N/A 4.83% 6/16/95
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FEE TABLES
The following table describes the various fees and expenses that you will pay if
you invest in Service Shares. Expenses are estimated for the fiscal year ending
August 31, 2001. Expenses are stated as a percentage of average net assets.
There are no charges for purchasing or redeeming Fund shares.
ANNUAL FUND OPERATING EXPENSES
(expenses that are deducted from Fund assets)(1)
TREASURY GOVERNMENT CASH
CASH FUND CASH FUND FUND
Management Fees(2) 0.18% 0.18% 0.18%
Distribution (Rule 12b-1) Fees 0.75% 0.75% 0.75%
Other Expenses 0.77% 0.77% 0.77%
Total Annual Fund Operating Expenses 1.70% 1.70% 1.70%
(1) Each Fund's expenses include its pro-rata share of the expenses of its
corresponding Portfolio.
(2) Includes all investment advisory and administration fees.
EXAMPLE
The following is a hypothetical example intended to help you compare the cost of
investing in Service Shares of a Fund to the cost of investing in other mutual
funds. The example assumes that you invest $10,000 in a Fund for the time
periods indicated and then redeem all of your shares at the end of those
periods. The example also assumes that your investment has a 5% annual return,
that the operating expenses remain the same as stated in the above table and
that distributions are reinvested. Although your actual costs may be higher or
lower, under these assumptions your costs would be:
ONE YEAR THREE YEARS FIVE YEARS TEN YEARS
TREASURY CASH FUND $173 $536 $923 $2,009
GOVERNMENT CASH FUND $173 $536 $923 $2,009
CASH FUND $173 $536 $923 $2,009
MANAGEMENT
Each Fund is a series of Monarch Funds (the "Trust"), an open-end, management
investment company. The business of the Trust and of each Fund is managed under
the direction of the Board of Trustees (the "Board"). The Board formulates the
general policies of each Fund and meets periodically to review each Fund's
performance, monitor investment activities and practices and discuss other
matters affecting each Fund. Additional information about the Board and the
Trust's executive officers is in the SAI.
THE ADVISER
Each Portfolio's investment adviser is Forum Investment Advisors, LLC, Two
Portland Square, Portland, Maine 04101. The Adviser's primary business is fixed
income investment management and, in addition to the Portfolios, advises two
other money market funds and five taxable and tax-free bond funds. The Adviser
is a privately-owned company controlled by John Y. Keffer, who is Chairman of
the Board.
The Adviser makes investment decisions for each Portfolio. During the Funds'
last fiscal year, the advisory fees paid to the Adviser for each Portfolio were
0.03% of the Portfolio's average daily net assets.
OTHER SERVICE PROVIDERS
The Forum Financial Group ("Forum") of companies provides various services to
each Fund. As of June 30, 2000, Forum provided administration and distribution
services to investment companies and collective investment funds with assets of
approximately $85 billion.
Forum Shareholder Services, LLC (the "Transfer Agent") is each Fund's transfer
agent.
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Forum Fund Services, LLC, a registered broker-dealer and member of the National
Association of Securities Dealers, Inc., is the distributor (principal
underwriter) of each Fund's shares. The distributor acts as the representative
of the Trust in connection with the offering of each Fund's shares. The
distributor may enter into arrangements with banks, broker-dealers or other
financial institutions through which investors may purchase or redeem shares.
Each Fund has adopted a distribution or "Rule 12b-1" plan under which the Fund
pays the distributor 0.75% of the average daily net assets of Service Shares for
the sale and distribution of the shares. Each Fund has also entered into a
shareholder service agreement under which the Fund pays 0.25% of the average
daily net assets of Service Shares for the servicing of shareholder accounts.
The fees paid under the distribution plan and shareholder service agreement may
be paid to various financial institutions that provide services to their
customers invested in Service Shares. Because Service Shares pay distribution
fees on an on-going basis, your investment cost over time may be higher than
paying other types of sales charges.
FUND EXPENSES
Each Fund pays for all of its expenses. Expenses of Service Shares include the
Shares' own expenses as well as Trust expenses that are allocated among the
Funds, their classes of shares and any other funds of the Trust. The Adviser or
other service providers may voluntarily waive all or any portion of their fees
and/or reimburse certain expenses. Any fee waiver or expense reimbursement
increases investment performance for the period during which the waiver or
reimbursement is in effect.
YOUR ACCOUNT
HOW TO CONTACT THE FUNDS
You may either contact the Trust or your financial intermediary for an account
application or for further information regarding the Funds.
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WRITE TO US AT: WIRE INVESTMENTS TO:
Imperial Securities Corporation Imperial Bank
9920 South La Cienega Boulevard ABA #122201444
14th Floor FOR CREDIT TO:
Inglewood, California 90301 Forum Shareholder Services, LLC
Account # 09075-933
TELEPHONE US TOLL-FREE AT: (Name of Fund) - Service Shares
(800) 754-8757 (Your Name)
(Your Account Number)
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GENERAL INFORMATION
You may purchase or sell (redeem) shares at the net asset value of a share
("NAV") next calculated after the Transfer Agent receives your request in proper
form accompanied by funds on deposit at a Federal Reserve Bank ("Federal
Funds"). Investments are not accepted or invested by a Fund during the period
before the receipt of Federal Funds.
Shares become entitled to receive distributions on the day of purchase if the
order and payment are received in proper form by the Transfer Agent as follows:
ORDER MUST BE RECEIVED BY: PAYMENT MUST BE RECEIVED BY:
11:00 a.m., Pacific time 1:00 p.m., Pacific time
On days that the Bond Market Association recommends an early close of the
government securities market or that those markets or the Federal Reserve Bank
of San Francisco close early, the Trust may advance the time by which the
Transfer Agent must receive completed purchase and redemption orders.
If you purchase shares directly from a Fund, you will receive monthly statements
and a confirmation of each transaction. You should verify the accuracy of all
transactions in your account as soon as you receive your confirmations. Each
Fund reserves the right to waive minimum investment amounts and may temporarily
suspend (during unusual market conditions) or discontinue any service or
privilege.
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WHEN AND HOW NAV IS DETERMINED Each Fund calculates its NAV as of 1:00 p.m.,
Pacific time on each weekday except on Federal holidays and other days that the
Federal Reserve Bank of San Francisco is closed ("Fund Business Days"). The time
at which NAV is calculated may change in case of an emergency. In order to
maintain a stable NAV of $1.00 per share, each Portfolio values the securities
in its portfolio on an amortized cost basis.
TRANSACTIONS THROUGH THIRD PARTIES If you invest through your financial
institution, the policies and fees charged by that institution may be different
than those of a Fund. Financial institutions may charge transaction fees and may
set different minimum investments or limitations on buying or selling shares.
These institutions also may provide you with certain shareholder services such
as periodic account statements. Consult a representative of your financial
institution for more information.
BUYING SHARES
HOW TO MAKE PAYMENTS All investments must be in U.S. dollars and checks must be
drawn on U.S. banks.
CHECKS For individual, sole proprietorship, joint, Uniform Gift to
Minors Act ("UGMA") or Uniform Transfer to Minors Act ("UTMA")
accounts, the check must be made payable to "Monarch Funds" or to one
or more owners of the account and endorsed to "Monarch Funds." For all
other accounts, the check must be made payable on its face to "Monarch
Funds." No other method of check payment is acceptable (for instance,
you may not pay by traveler's check).
ACH Refers to the "Automated Clearing House" system maintained by the
Federal Reserve Bank, which allows banks to process checks, transfer
funds and perform other tasks.
WIRES Instruct your financial institution to make a Federal Funds wire
payment to us. Your financial institution may charge you a fee for this
service.
MINIMUM INVESTMENTS The minimum initial investment in Service Shares is $1,000.
ACCOUNT REQUIREMENTS
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TYPE OF ACCOUNT REQUIREMENT
INDIVIDUAL, SOLE PROPRIETORSHIP AND JOINT ACCOUNTS: o Instructions must be signed by all persons
Individual accounts are owned by one person, as are sole required to sign exactly as their names appear on the
proprietorship accounts. Joint accounts have two or more account.
owners (tenants).
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA): o Depending on state laws, you can set up a
These custodial accounts provide a way to give money to a custodial account under the UGMA or the UTMA.
child and obtain tax benefits. o The custodian must sign instructions in a manner
indicating custodial capacity.
BUSINESS ENTITIES o Submit a Corporate/Organization Resolution form
or similar document.
TRUSTS o The trust must be established before an account
can be opened.
o Provide a certified trust document, or the pages
from the trust document that identifies the trustees.
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INVESTMENT PROCEDURES
HOW TO OPEN AN ACCOUNT HOW TO ADD TO YOUR ACCOUNT
BY CHECK BY CHECK
o Call or write us for an account application and/or a o Fill out an investment slip from a confirmation
Corporate/Organization Resolution form. or write us a letter.
o Complete the application. o Write your account number on your check.
o Mail us your application and a check. o Mail us the slip (or your letter) and the check.
BY WIRE BY WIRE
o Call or write us for an account application and/or a o Call to notify us of your incoming wire.
Corporate/Organization Resolution form. o Instruct your bank to wire your money to us.
o Complete the application.
o Call us to fax the completed application and we will
assign you an account number.
o Mail us your application.
o Instruct your bank to wire your money to us.
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LIMITATIONS ON PURCHASES The Funds reserve the right to refuse any purchase
request, particularly requests that could adversely affect a Fund or its
operations.
SELLING SHARES
Generally, the Funds will send redemption proceeds to you immediately after
receiving your redemption request in proper form. Shares are not entitled to
receive distributions declared on or after the day on which a redemption order
is accepted by the Transfer Agent.
HOW TO SELL SHARES FROM YOUR ACCOUNT
BY MAIL
o Prepare a written request including:
o Your name(s) and signature(s)
o Your account number
o [Fund Name] - Service Shares
o The dollar amount or number of shares you want to sell
o How and where to send the redemption proceeds.
o Obtain a signature guarantee (if required).
o Obtain other documentation (if required).
o Mail us your request and documentation.
BY WIRE
o Wire redemptions are only available if your redemption is for $1,000 or
more and you did not decline wire redemption privileges on your account
application.
o Call us with your request (unless you declined telephone redemption
privileges on your account application) (See "By Telephone") OR
o Mail us your request (See "By Mail").
BY CHECK
o Write a check against your account balance (See "Check Writing
Privileges").
o Your investment will continue to earn distributions until your check is
presented to the Fund for payment.
BY TELEPHONE
o Call us with your request (unless you declined telephone redemption
privileges on your account application).
o Provide the following information:
o Your account number
o Exact name(s) in which the account is registered
o Additional form of identification.
o Redemption proceeds will be:
o Mailed to you OR
o Wired to you (unless you declined wire redemption privileges on your
account application) (See "By Wire").
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TELEPHONE REDEMPTION PRIVILEGES You may redeem your shares by telephone unless
you declined telephone redemption privileges on your account application. You
may be responsible for any fraudulent telephone order as long as the Transfer
Agent takes reasonable measures to verify the order.
WIRE REDEMPTION PRIVILEGES You may redeem your shares by wire unless you
declined wire redemption privileges on your account application. The minimum
amount that may be redeemed by wire is $1,000. If the Transfer Agent receives
your wire redemption order after 11:00 a.m., Pacific time (or other time as may
be determined), the Transfer Agent will wire proceeds to you on the next Fund
Business Day.
CHECK WRITING PRIVILEGES You may redeem shares by writing checks provided by the
Funds against your account balance. When your check is presented for payment,
the Trust will deduct shares from your shareholder account in an amount equal to
the amount of the check, as long as you have a sufficient number of shares to
cover the amount of the check.
SIGNATURE GUARANTEE REQUIREMENTS To protect you and each Fund against fraud,
signatures on certain requests must have a "signature guarantee." A signature
guarantee verifies the authenticity of your signature. You can obtain one from
most banking institutions or securities brokers, but not from a notary public.
For requests made in writing, a signature guarantee may be required for any of
the following:
o Sales of over $50,000 worth of shares
o Changes to a shareholder's record name
o Redemptions from an account for which the address or account
registration has changed within the last 30 days
o Sending redemption proceeds to any person, address, brokerage firm or
bank account not on record
o Sending redemption proceeds to an account with a different
registration (name or ownership) from yours
o Changes to systematic investment or withdrawal, distribution,
telephone redemption or exchange option or any other election in
connection with your account
SMALL ACCOUNTS If the value of your account falls below $1,000, a Fund may ask
you to increase your balance. If the account value is still below $1,000 after
60 days, a Fund may close your account and send you the proceeds.
REDEMPTIONS IN KIND Each Fund reserves the right to pay redemption proceeds in
portfolio securities rather than cash.
EXCHANGE PRIVLEDGES
You may exchange Service Shares of a Fund for Service Shares of another Fund.
You may exchange only between identically registered accounts (names(s), address
and taxpayer ID number). New accounts opened through an exchange will be
assigned the same shareholder priviledges as the initial account. You may
exchange your shares by mail or by telephone, unless you declined telephone
redemption priviledges on your account application. You may be responsible for
any fraudulent telephone order as long as the Transfer Agent takes reasonable
measures to verify the order.
HOW TO EXCHANGE
BY MAIL
o Prepare a written request including:
o Your name(s) and signature(s)
o Your account numbers
o The names of the Funds from which you are selling and into which you
are exchanging
o The dollar amount or number of shares you want to sell (and exchange).
o Open a new account and complete an account application if you are
requesting different shareholder privileges.
o Mail us your request and documentation.
BY TELEPHONE
o Call us with your request (unless you declined telephone redemption
privileges on your account application).
o Provide the following information:
o Your account number
o Exact name(s) in which account is registered
o Additional form of identification.
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OTHER INFORMATION
ADDITIONAL INVESTMENT POLICIES
The Funds and Portfolios operate in accordance with "Rule 2a-7" under the
Investment Company Act of 1940. All restrictions relating to maturity, credit
quality and diversification are interpreted in accordance with that rule.
A Portfolio may from time to time take temporary defensive positions in response
to adverse market, economic, political or other conditions. For instance, the
Portfolios may hold cash in any amount. Each Portfolio may invest in other money
market mutual funds that have substantially similar policies.
Securities in which the Portfolios invest may have variable or floating rates of
interest. These securities pay interest at rates that are adjusted periodically
according to a specified formula, usually with reference to some interest rate
index or market interest rate. The Portfolios limit these securities to those
with an interest rate that is adjusted based solely on a single short-term rate
or index, such as the Prime Rate.
CORE AND GATEWAY(R)
Each Fund is a "gateway" fund in a "Core and Gateway" structure. Each Fund
invests substantially all of its assets in its corresponding Portfolio, each of
which is a series of Core Trust (Delaware) ("Core Trust"), another mutual fund.
A Fund may withdraw its entire investment from a Portfolio at any time that the
Board decides it is in the Fund's best interest to do so.
The board of trustees of Core Trust formulates the general policies of each
Portfolio and meets periodically to review each Portfolio's performance, monitor
investment activities and practices and discuss other matters affecting each
Portfolio. Additional information about Core Trust's board and executive
officers is in the SAI.
CLASSES OF SHARES
In addition to Service Shares, each Fund offers Universal Shares, Institutional
Shares and Investor Shares. You may obtain prospectuses describing these classes
of shares from the Funds' distributor by contacting the Transfer Agent.
Universal Shares are sold to institutional investors, Institutional Shares are
sold to banks, trust companies and certain other financial institutions for
their own and their customer accounts and Investor Shares are sold to retail
investors. Each class has different fees and investment minimums.
DISTRIBUTIONS
Each Fund declares distributions from net investment income daily and pays those
distributions monthly. In addition, each Fund pays capital gain distributions,
if any, at least annually.
All distributions are reinvested in additional shares, unless you elect to
receive distributions in cash. For Federal income tax purposes, distributions
are treated the same whether they are received in cash or reinvested.
TAXES
Each Fund intends to operate in a manner such that it will not be liable for
Federal income or excise tax.
A Fund's distribution of net income (including short-term capital gain) is
taxable to you as ordinary income. A Fund's distribution of long-term capital
gain, if any, is taxable to you as long-term capital gain regardless of how long
you have held Fund shares.
Each Fund will send you information about the income tax status of distributions
paid during the year shortly after December 31 of each year. For further
information about the tax effects of investing in a Fund, including state and
local tax matters, please see the SAI and consult your tax adviser.
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FINANCIAL HIGHLIGHTS
The following table is intended to help you understand the performance of
Service Shares of the Funds. Data for Investor Shares of Treasury Cash Fund and
Cash Fund and Institutional Shares of Government Cash Fund is included in the
table as Service Shares had not commenced operations as of August 31, 1999.
Total return in the table represents the rate an investor would have earned on
an investment in Investor Shares or Institutional Shares of the applicable Fund
(assuming the reinvestment of all distributions). The total return of Service
shares would have been lower than that of Investor or Institutional Shares. The
information for the fiscal years ended August 31 from 1995 to 1999 has been
audited by KPMG LLP. The information for the six months ended February 29, 2000
has not been audited by KPMG LLP. Each Fund's financial statements and the
independent auditor's report are included in the Annual Report dated August 31,
1999, which is available upon request, without charge.
As of February 29, 2000 the net assets of Treasury Cash Portfolio were
$418,856,575, of Government Cash Portfolio were $757,281,681 and of Cash
Portfolio were $1,871,539,716.
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SELECTED DATA FOR A SINGLE SHARE RATIOS/SUPPLEMENTAL DATA
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Net Ratios to
Assets at Average Net Assets
Beginning Distribution Ending End of
Net Asset Net from Net Net Asset Period Net
Value Per InvestmentInvestment Value per Total (000's Net Investment Gross
Share Income Income Share Return Omitted Expenses Income Expenses(a)
TREASURY CASH FUND
INVESTOR SHARES
Six Months Ended February 29,2000 $1.00 $0.02 $(0.02) $1.00 2.27% $205,857 0.85%(b) 4.52%(b) 0.85%(b)
Year Ended August 31
1999 1.00 0.04 (0.04) 1.00 4.10% 232,624 0.83% 4.02% 0.89%
1998 1.00 0.05 (0.05) 1.00 4.72% 57,957 0.82% 4.62% 0.91%
1997 1.00 0.05 (0.05) 1.00 4.58% 30,118 0.83% 4.55% 0.97%
1996(c) 1.00 0.04 (0.04) 1.00 4.00% 3,980 0.83%(b) 4.50%(b) 1.33%(b)
GOVERNMENT CASH FUND
INSTITUTIONAL SHARES
Six Months Ended February 29,2000 1.00 0.02 (0.02) 1.00 2.51% 437,720 0.58%(b) 5.00%(b) 0.58%(b)
Year Ended August 31
1999 1.00 0.05 (0.05) 1.00 4.59% 455,239 0.57% 4.50% 0.59%
1998 1.00 0.05 (0.05) 1.00 5.22% 443,618 0.57% 5.09% 0.58%
1997 1.00 0.05 (0.05) 1.00 5.06% 245,157 0.57% 4.95% 0.57%
1996 1.00 0.05 (0.05) 1.00 5.18% 256,244 0.57% 5.06% 0.57%
1995 1.00 0.05 (0.05) 1.00 5.46% 186,620 0.54% 5.39% 0.66%
CASH FUND
INVESTOR SHARES
Six Months Ended February 29,2000 1.00 0.02 (0.02) 1.00 2.46% 580,164 0.84%(b) 4.94%(b) 0.84%(b)
Year Ended August 31
1999 1.00 0.04 (0.04) 1.00 4.41% 269,421 0.83% 4.30% 0.85%
1998 1.00 0.05 (0.05) 1.00 4.97% 181,754 0.83% 4.86% 0.86%
1997 1.00 0.05 (0.05) 1.00 4.81% 76,480 0.83% 4.72% 0.85%
1996 1.00 0.05 (0.05) 1.00 4.95% 32,731 0.83% 4.68% 0.96%
1995(c) 1.00 0.01 (0.01) 1.00 1.13% 4,665 0.84%(b) 5.32%(b) 3.76%(b)
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(a) During each period, certain fees and expenses were waived and reimbursed,
respectively. The ratio of Gross Expenses to Average Net Assets reflects
the expense ratio in the absence of any waivers and reimbursements.
(b) Annualized.
(c) Investor Shares of Treasury Cash Fund and Cash Fund commenced operations on
October 25, 1995 and June 16, 1995, respectively. Institutional Shares of
Government Cash Fund commenced operations on July 15, 1993.
11
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MONARCH FUNDS
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<S> <C>
FOR MORE INFORMATION MONARCH FUNDS
The following documents are available free upon request: SERVICE SHARES
ANNUAL/SEMI-ANNUAL REPORTS TREASURY
The Funds will provide annual and semi-annual reports to shareholders that CASH FUND
will provide additional information about each Fund's investments. In the
Funds' annual report, you will find a discussion of the market conditions and GOVERNMENT
investment strategies that significantly affected each Fund's performance CASH FUND
during its preceding fiscal year.
CASH FUND
STATEMENT OF ADDITIONAL INFORMATION ("SAI")
The SAI provides more detailed information about each Fund and is incorporated
by reference into this Prospectus.
CONTACTING THE FUNDS
You can get copies of both reports (when available) and the SAI, request other
information and discuss your questions about the Funds by contacting:
Forum Shareholder Services, LLC
P.O. Box 446
Portland, Maine 04112
(800) 754-8757
(207) 879-0001
SECURITIES AND EXCHANGE COMMISSION INFORMATION
You can also review a Fund's reports and SAI at the Public Reference Room of the
Securities and Exchange Commission ("SEC"). The scheduled hours of operation of
the Public Reference Room may be obtained by calling the SEC at (202) 942-8090.
You can get copies, for a fee, by e-mail or by writing to:
Public Reference Room
Securities and Exchange Commission
Washington, D.C. 20549-0102
E-mail address: [email protected]
Free copies of the reports (when available) and the SAI are available from the
SEC's Internet Web Site at http://www.sec.gov.
Monarch Funds
Two Portland Square
Portland, Maine 04101
Investment Company Act File No. 811-6742 (800) 754-8757
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