PROSPECTUS SUPPLEMENT DATED DECEMBER 29, 1995, TO THE FOLLOWING PROSPECTUSES
(SUPERSEDES SUPPLEMENT DATED SEPTEMBER 1, 1995):
The Pierpont Money Market Fund, dated March 1, 1995
The Pierpont Treasury Money Market Fund, dated March 1, 1995
The Pierpont Short Term Bond Fund, dated March1, 1995
The Pierpont Bond Fund, dated March 1, 1995
The Pierpont New York Total Return Bond Fund, dated August 1, 1995
The Pierpont Equity Fund, dated October 1, 1995
The Pierpont Capital Appreciation Fund, dated October 1, 1995
The Pierpont International Equity Fund, dated March 1, 1995 as amended June 21,
1995
The Pierpont Emerging Markets Equity Fund, dated March 1, 1995
The Pierpont Diversified Fund, dated October 1, 1995
1. Effective December 29, 1995, each Fund listed above and its
corresponding Portfolio have agreed to pay Morgan Guaranty Trust Company of New
York ("Morgan Guaranty") for certain administrative services under
Administrative Services Agreements, as described below, in addition to the fees
Morgan Guaranty receives as shareholder servicing agent for the Fund and as
advisor to the Portfolio. At the same time, the fees payable to Signature
Broker-Dealer Services, Inc. ("SBDS"), the administrator of each Fund and
Portfolio, and the fees payable by certain Funds to Morgan Guaranty as
shareholder servicing agent were changed. The anticipated effect of these fee
changes on the expense ratios of the Funds is not significant in comparison to
expense ratios that existed through August 31, 1995, when the Trust's and
Portfolios' Financial and Fund Accounting Services Agreements with Morgan
Guaranty were terminated. The tables captioned "Expense Table" and "Example" at
page 2 of each Prospectus listed above are restated in their entirety as follows
as applicable to the Fund described in such Prospectus:
"EXPENSE TABLE
<TABLE>
<CAPTION>
TREASURY NEW YORK
ANNUAL OPERATING MONEY MARKET MONEY MARKET SHORT TERM TOTAL RETURN
EXPENSES FUND FUND BOND FUND BOND FUND BOND FUND
<S> <C> <C> <C> <C> <C>
ADVISORY FEE 0.12% 0.20% 0.25% 0.30% 0.30%
RULE 12B-1 FEES None None None None None
OTHER EXPENSES AFTER
APPLICABLE EXPENSE
REIMBURSEMENTS 0.29% 0.20% 0.42% 0.43% 0.45%
----- ----- ----- ----- -----
TOTAL OPERATING
EXPENSES AFTER
APPLICABLE EXPENSE
REIMBURSEMENTS 0.41%1 0.40%2 0.67%2 0.73%1 0.75%2
===== ===== ===== ===== =====
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
CAPITAL EMERGING
ANNUAL OPERATING APPRECIATION INTERNATIONAL MARKETS EQUITY DIVERSIFIED
EXPENSES EQUITY FUND FUND EQUITY FUND FUND FUND
<S> <C> <C> <C> <C> <C>
ADVISORY FEE 0.40% 0.60% 0.60% 1.00% 0.55%
RULE 12B-1 FEES None None None None None
OTHER EXPENSES AFTER
APPLICABLE EXPENSE
REIMBURSEMENTS 0.44% 0.30% 0.60% 0.79% 0.43%
----- ----- ----- ----- -----
TOTAL OPERATING EXPENSES
AFTER APPLICABLE EXPENSE
REIMBURSEMENTS 0.84%1 0.90%2 1.20%1 1.79%1 0.98%2
===== ===== ===== ===== =====
<FN>
1For each of The Pierpont Money Market, Bond, Equity, International Equity and
Emerging Markets Equity Funds, fees and expenses are expressed as a percentage
of the Fund's estimated average daily net assets for its current fiscal year and
reflect the fact that no expense reimbursement arrangements are currently
applicable.
2For each of The Pierpont Treasury Money Market, Short Term Bond, New York Total
Return Bond, Capital Appreciation and Diversified Funds, fees and expenses are
expressed as a percentage of the Fund's average daily net assets for its most
recent fiscal year, after any expense reimbursements.
</FN>
</TABLE>
For actual historical expense information for these Funds, see "Financial
Highlights" in the Prospectus.
2
<PAGE>
EXAMPLE
An investor would pay the following expenses on a $1,000 investment
assuming (1) 5% annual return and (2) redemption at the end of each time period:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
TREASURY NEW YORK
MONEY MARKET MONEY SHORT TERM TOTAL RETURN
FUND MARKET FUND BOND FUND BOND FUND BOND FUND
1 Year $ 4 $ 4 $ 7 $ 7 $ 8
3 Years $13 $13 $21 $23 $24
5 Years $23 $23 $37 $41 $42
10 Years $52 $52 $83 $91 $93
</TABLE>
<TABLE>
<CAPTION>
CAPITAL EMERGING
APPRECIATION INTERNATIONAL MARKETS EQUITY DIVERSIFIED
EQUITY FUND FUND EQUITY FUND FUND FUND
<S> <C> <C> <C> <C> <C>
1 Year $ 9 $ 9 $ 12 $ 18 $ 10
3 Years $ 27 $ 29 $ 38 $ 56 $ 31
5 Years $ 47 $ 50 $ 66 $ 97 $ 54
10 Years $104 $111 $145 $211 $120
</TABLE>
The above Expense Table is designed to assist investors in
understanding the various direct and indirect costs and expenses that investors
in each Fund bear. The fees and expenses included in Other Expenses are the fees
paid to Morgan Guaranty under the Administrative Services Agreements and
Shareholder Servicing Agreements, the fees paid to Pierpont Group, Inc. under
the Fund Services Agreements, the fees paid to SBDS under the Administration
Agreements, organizational expenses, the fees paid to State Street Bank and
Trust Company as custodian and transfer agent and other usual and customary
expenses of the Fund and Portfolio. For a more detailed description of
contractual fee arrangements, including expense reimbursements, and of the fees
and expenses included in Other Expenses, see "Management of the Trust and
Portfolio" and "Shareholder Servicing." The above Expense Table reflects total
operating expenses after any applicable expense reimbursements for each Fund and
its corresponding Portfolio. If the above Expense Table reflected these expenses
without current reimbursements, Total Operating Expenses would be as follows:
The Pierpont Treasury Money Market Fund, 0.57%; The Pierpont Short Term Bond
Fund, 1.45%; The Pierpont New York Total Return Bond Fund, 0.83%; The Pierpont
Capital Appreciation Fund, 1.06%; and The Pierpont Diversified Fund, 1.32%.
In connection with the above example, please note that $1,000 is less than
the Funds' minimum investment requirement and that there are no redemption or
exchange fees of any kind. See "Purchase of Shares" and "Redemption of Shares."
THE EXAMPLE IS HYPOTHETICAL; IT IS SOLELY FOR ILLUSTRATIVE PURPOSES. IT SHOULD
NOT BE CONSIDERED A REPRESENTATION OF FUTURE PERFORMANCE; ACTUAL EXPENSES MAY BE
MORE OR LESS THAN THOSE SHOWN."
3
<PAGE>
2. The following restates the last paragraph under the caption
"Management of the Trust and the Portfolio-Advisor" in each Prospectus listed
above:
"Under separate agreements, Morgan Guaranty provides certain financial,
fund accounting and administrative services to the Fund and the Portfolio and
shareholder services to Fund shareholders. See "Administrative Services Agent"
and "Shareholder Servicing" below. INVESTMENTS IN THE FUND ARE NOT DEPOSITS OR
OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY, MORGAN GUARANTY OR ANY OTHER
BANK."
3. The following (i) is inserted before the caption "Management of the
Trust and the Portfolio-Custodian" in the Prospectuses for The Pierpont Equity,
Capital Appreciation and Diversified Funds and (ii) restates the discussion
under the caption "Management of the Trust and the Portfolio-Services Agent" in
each other Prospectus listed above:
"ADMINISTRATIVE SERVICES AGENT. Under Administrative Services
Agreements with the Trust and the Portfolio effective December 29, 1995, Morgan
Guaranty is responsible for certain financial, fund accounting and
administrative services provided to the Fund and the Portfolio, including
services related to Portfolio and Fund tax returns, Portfolio and Fund financial
reports, computing Fund dividends and net asset value per share and keeping Fund
books of account. Under these agreements, each of the Fund and the Portfolio has
agreed to pay to Morgan Guaranty a fee equal to its proportionate share of an
annual complex-wide charge. This charge is calculated daily based on the
aggregate net assets of the Portfolio and the other portfolios (collectively the
"Master Portfolios") in which series of the Trust, The JPM Institutional Funds
or The JPM Advisor Funds invest. This charge is calculated in accordance with
the following annual schedule: 0.06% on the first $7 billion of the Master
Portfolios' aggregate average daily net assets and 0.03% of the Master
Portfolios' aggregate average daily net assets in excess of $7 billion. The
portion of this charge payable by the Fund or the Portfolio is determined by the
proportionate share that its net assets bear to the total of the net assets of
the Trust, The JPM Institutional Funds, The JPM Advisor Funds, the Master
Portfolios and other investors in the Master Portfolios for which Morgan
Guaranty provides similar services."
4. The following restates the second and third paragraphs under the
caption "Management of the Trust and the Portfolio- Administrator and
Distributor" in each Prospectus listed above, and the last sentence of the first
paragraph under such caption is deleted from each Prospectus dated prior to
October 1, 1995:
"Under the Trust's and the Portfolio's Administration Agreements with
SBDS, each of the Fund and the Portfolio has agreed to pay to SBDS a fee equal
to its proportionate share of an annual complex-wide charge. This charge is
calculated daily based on the aggregate net assets of the Master Portfolios.
This charge is calculated in accordance with the following annual schedule:
0.03% on the first $7 billion of the Master Portfolios' aggregate average daily
net assets and 0.01% of the Master Portfolios' aggregate average daily net
assets in excess of $7 billion. The portion of this charge payable by the Fund
or the Portfolio is determined by the proportionate share that its net assets
bear to the total of the net assets of the Trust, The JPM Institutional Funds,
The JPM Advisor Funds and the Master Portfolios."
4
<PAGE>
5. The following restates the entire discussion under the caption
"Management of the Trust and the Portfolio-Expenses" in each Prospectus listed
above as applicable to the Fund described in such Prospectus:
"EXPENSES. In addition to the fees payable to Morgan Guaranty, SBDS and
Pierpont Group, Inc. under the various agreements discussed under "Trustees",
"Advisor", "Administrator and Distributor" and "Administrative Services Agent"
above and "Shareholder Servicing" below, the Fund and the Portfolio are
responsible for usual and customary expenses associated with their respective
operations. Such expenses include organization expenses, legal fees, accounting
expenses, insurance costs, the compensation and expenses of the Trustees,
registration fees under federal securities laws, and extraordinary expenses
applicable to the Fund or the Portfolio. For the Fund, such expenses also
include transfer, registrar and dividend disbursing costs, the expenses of
printing and mailing reports, notices and proxy statements to Fund shareholders
and registration fees under state securities laws. For the Portfolio, such
expenses also include applicable registration fees under foreign securities
laws, custodian fees and brokerage expenses.
Morgan Guaranty has agreed that it will reimburse each Fund through at
least the indicated date to the extent necessary to maintain the Fund's total
operating expenses (which includes expenses of the Fund and its corresponding
Portfolio) at the following percentage of the Fund's average daily net assets:
<TABLE>
<S> <C> <C>
The Pierpont Treasury Money Market Fund 0.40% February 28, 1997
The Pierpont Short Term Bond Fund 0.67% February 28, 1997
The Pierpont New York Total Return Bond Fund 0.75% July 31, 1996
The Pierpont Capital Appreciation Fund 0.90% September 30, 1996
The Pierpont Emerging Markets Equity Fund 1.88% February 29, 1996
The Pierpont Diversified Fund 0.98% October 31, 1996
</TABLE>
This limit on certain expenses does not cover extraordinary increases
in these expenses during the period and no longer applies in the event of a
precipitous decline in assets due to unforeseen circumstances. These is no
assurance that Morgan Guaranty will continue this waiver beyond the specified
period, except as required by the following sentence. Morgan Guaranty has agreed
to waive fees as necessary if in any fiscal year the sum of the Fund's expenses
exceeds the limits set by applicable regulations of state securities
commissions. Such annual limits are currently 2.5% of the first $30 million of
average net assets, 2% of the next $70 million of such net assets and 1.5% of
such net assets in excess of $100 million for any fiscal year."
6. The following restates the second sentence of the first paragraph
under the caption "Shareholder Servicing" in each Prospectus listed above as
applicable to the Fund described in such Prospectus:
"The Fund has agreed to pay Morgan Guaranty for acting as shareholder
servicing agent at the following annual rate (expressed as a percentage of the
average daily net asset value of Fund shares owned by or for shareholders for
whom Morgan Guaranty is acting as shareholder servicing agent):
5
<PAGE>
FUND FEE
The Pierpont Money Market Fund 0.15% of average daily net assets
The Pierpont Treasury Money Market Fund up to $2 billion; 0.10% thereafter
The Pierpont Short Term Bond Fund 0.20% of average daily net assets
The Pierpont Bond Fund
The Pierpont New York Total Return Bond Fund
The Pierpont Equity Fund 0.25% of average daily net assets
The Pierpont Capital Appreciation Fund
The Pierpont International Equity Fund
The Pierpont Emerging Markets Equity Fund
The Pierpont Diversified Fund
The above fees generally reflect a decrease in the shareholder servicing fees
previously charged by Morgan Guaranty to The Pierpont Money Market and Treasury
Money Market Funds and an increase in such fees for The Pierpont Short Term
Bond, Bond and New York Total Return Bond Funds."
FEES4.DOC
6
