SEC FILE NO. 33-56094
PILGRIM FUNDS
Supplement dated August 14, 2000 to the Class A, B, C, M and T
Domestic Equity Funds and International Equity Funds Prospectuses
dated July 31, 2000
(This supplement supercedes the Supplement dated July 31, 2000.)
1. TERMINATION OF SUB-ADVISER FOR PILGRIM LARGECAP GROWTH FUND, PILGRIM
WORLDWIDE GROWTH FUND, PILGRIM INTERNATIONAL CORE GROWTH FUND, PILGRIM EMERGING
COUNTRIES FUND, AND PILGRIM CONVERTIBLE FUND.
Effective October 1, 2000, Nicholas-Applegate Capital Management ("NACM")
will no longer serve as Sub-Adviser of Pilgrim Convertible Fund ("Convertible
Fund"), Pilgrim LargeCap Growth Fund ("LargeCap Growth Fund"), Pilgrim Worldwide
Growth Fund ("Worldwide Growth Fund"), Pilgrim International Core Growth Fund
("International Core Growth Fund") and Pilgrim Emerging Countries Fund
("Emerging Countries Fund") (collectively, the "Funds"). NACM currently serves
as a Sub-Adviser to Pilgrim Investments, Inc. ("Pilgrim Investments") which is
the Adviser for those Funds. Effective October 1, 2000, Pilgrim Investments will
manage directly these Funds under its existing Investment Management Agreement.
The fees payable to Pilgrim Investments for serving as Adviser will not change.
Effective October 1, 2000, Mary Lisanti, Executive Vice President and Chief
Investment Officer -- Domestic Equities of Pilgrim Investments, and Thomas J.
Sullivan, Vice President and Portfolio Manager of Pilgrim Investments, will
share responsibility for the day-to-day management of LargeCap Growth Fund. Ms.
Lisanti also will be primarily responsible for the day-to-day management of the
domestic equity component of Worldwide Growth Fund. The biography for Ms.
Lisanti is set forth in the Prospectus. Thomas J. Sullivan was a Partner and
Equity Trader for First NY Securities, LLC in New York from April, 2000 to
August, 2000. From April, 1994 to March, 2000, Mr. Sullivan was Vice President
and portfolio manager at NACM and part of the team that managed LargeCap Growth
Fund. Mr. Sullivan was also the co-manager of the Pilgrim MidCap Growth Fund
during that time and was the lead manager of the Nicholas-Applegate US Growth
Equity Offshore Fund.
Effective October 1, 2000, Richard T. Saler and Philip A. Schwartz will
share responsibility for the day-to-day management of the International Core
Growth Fund, the Emerging Countries Fund, and the international portion of the
Worldwide Growth Fund. Mr. Saler has over 13 years of experience in
international investments. He is Senior Vice President of Pilgrim Investments
and held a similar position with Lexington Management Corporation ("LMC") prior
to that firm's recent acquisition by the parent company of Pilgrim Investments.
Mr. Saler is a member of an investment management team that manages both the
Pilgrim Global Corporate Leaders Fund and the Pilgrim International Fund
(formerly the Lexington Global Corporate Leaders Fund and the Lexington
International Fund, respectively), and he is the lead manager for the latter
fund. Mr. Saler has focused on international markets since joining LMC in 1986.
<PAGE>
Mr. Schwartz has over 12 years experience in international investments. He
is a Vice President at Pilgrim Investments, and held the same position with LMC
prior to that firms' recent acquisition. He is also a Chartered Financial
Analyst and a member of the New York Society of Security Analysts. Mr. Schwartz
is a member of an investment management team that manages both the Pilgrim
Global Corporate Leaders Fund and Pilgrim International Fund. Prior to joining
LMC in 1993, he was Vice President of European Research Sales with Cheuvreux De
Virieu in Paris and New York, serving the institutional market. Prior to
Cheuvreux, Mr. Schwartz was affiliated with Olde and Co. and Kidder, Peabody as
a stockbroker.
Effective October 1, 2000, Andrew Chow, Vice President and Portfolio
Manager of Pilgrim Investments, will be primarily responsible for the day-to-day
management of Convertible Fund. Prior to joining Pilgrim Investments in August,
2000, Mr. Chow was the portfolio manager of the Conseco Convertible Securities
Fund since 1998. He joined Conseco in 1991 where he was also responsible for
managing convertible securities accounts.
Following the assumption of portfolio management duties by Pilgrim
Investments, portfolio turnover may be higher than usual in connection with the
potential restructuring of the holdings of these Funds to reflect the management
style of Pilgrim Investments. Such potential restructuring may result in
transactional costs for the Funds and may result in accelerated capital gain
distributions as a result of the turnover.
2. CHANGE IN DESCRIPTION OF INVESTMENT STRATEGY FOR PILGRIM WORLDWIDE GROWTH
FUND.
Effective October 1, 2000, the following disclosure will replace the
disclosure under "Pilgrim Worldwide Growth Fund -- Investment Strategy" on page
6 of the International Equity Funds Prospectus:
Under normal conditions the Fund invests at least 65% of its total assets
in securities of issuers located in at least three different countries, one
of which normally includes the U.S. The Fund normally invests at least 75%
of its total assets in common stock. The Fund may invest in companies
located in countries with emerging securities markets when the Adviser
believes they present attractive investment opportunities.
In considering common stock of US companies, the Adviser selects companies
that it believes have above average prospects for growth. The companies may
have a large, medium or small market capitalization. The Adviser seeks
companies expected to benefit most from major social, economic and
technological trends that are likely to shape the future of business and
commerce over the next three to five years in the U.S. This trend-oriented
approach is combined with fundamental research to guide stock selection and
the structure of the U.S. portion of the portfolio.
In considering the common stock of non-U.S. companies, the Adviser selects
companies that it believes offer the best relative value in a number of
different categories and, as a result, the best prospects for capital
appreciation. Such categories may include, but are not limited to,
companies affected by important socio-economic trends (as described above
in the case of U.S. stock selection); companies based in certain regions;
and companies operating in major economic sectors. This relative value
seeking approach is combined with fundamental research to guide stock
selection and the structure of the non-U.S. portion of the portfolio.
<PAGE>
From time to time, the Adviser reviews the allocation between U.S. stocks
and non-U.S. stocks with reference to the corresponding breakdown of market
capitalization in the major indices of global stocks and to other factors
deemed appropriate by the Adviser.
SAVE THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE>
SEC FILE NO. 33-56094
PILGRIM FUNDS
Supplement dated August 14, 2000 to the Class Q Prospectus
dated July 31, 2000
(This supplement supercedes the Supplement dated July 31, 2000.)
1. TERMINATION OF SUB-ADVISER FOR PILGRIM LARGECAP GROWTH FUND, PILGRIM
WORLDWIDE GROWTH FUND, PILGRIM INTERNATIONAL CORE GROWTH FUND, PILGRIM EMERGING
COUNTRIES FUND, AND PILGRIM CONVERTIBLE FUND.
Effective October 1, 2000, Nicholas-Applegate Capital Management ("NACM")
will no longer serve as Sub-Adviser of Pilgrim Convertible Fund ("Convertible
Fund"), Pilgrim LargeCap Growth Fund ("LargeCap Growth Fund"), Pilgrim Worldwide
Growth Fund ("Worldwide Growth Fund"), Pilgrim International Core Growth Fund
("International Core Growth Fund") and Pilgrim Emerging Countries Fund
("Emerging Countries Fund") (collectively, the "Funds"). NACM currently serves
as a Sub-Adviser to Pilgrim Investments, Inc. ("Pilgrim Investments") which is
the Adviser for those Funds. Effective October 1, 2000, Pilgrim Investments will
manage directly these Funds under its existing Investment Management Agreement.
The fees payable to Pilgrim Investments for serving as Adviser will not change.
Effective October 1, 2000, Mary Lisanti, Executive Vice President and Chief
Investment Officer -- Domestic Equities of Pilgrim Investments, and Thomas J.
Sullivan, Vice President and Portfolio Manager of Pilgrim Investments, will
share responsibility for the day-to-day management of LargeCap Growth Fund. Ms.
Lisanti also will be primarily responsible for the day-to-day management of the
domestic equity component of Worldwide Growth Fund. The biography for Ms.
Lisanti is set forth in the Prospectus. Thomas J. Sullivan was a Partner and
Equity Trader for First NY Securities, LLC in New York from April, 2000 to
August, 2000. From April, 1994 to March, 2000, Mr. Sullivan was Vice President
and portfolio manager at NACM and part of the team that managed LargeCap Growth
Fund. Mr. Sullivan was also the co-manager of the Pilgrim MidCap Growth Fund
during that time and was the lead manager of the Nicholas-Applegate US Growth
Equity Offshore Fund.
Effective October 1, 2000, Richard T. Saler and Philip A. Schwartz will
share responsibility for the day-to-day management of the International Core
Growth Fund, the Emerging Countries Fund, and the international portion of the
Worldwide Growth Fund. Mr. Saler has over 13 years of experience in
international investments. He is Senior Vice President of Pilgrim Investments
and held a similar position with Lexington Management Corporation ("LMC") prior
to that firm's recent acquisition by the parent company of Pilgrim Investments.
Mr. Saler is a member of an investment management team that manages both the
Pilgrim Global Corporate Leaders Fund and the Pilgrim International Fund
(formerly the Lexington Global Corporate Leaders Fund and the Lexington
International Fund, respectively), and he is the lead manager for the latter
fund. Mr. Saler has focused on international markets since joining LMC in 1986.
Mr. Schwartz has over 12 years experience in international investments. He
is a Vice President at Pilgrim Investments, and held the same position with LMC
prior to that firms' recent acquisition. He is also a Chartered Financial
Analyst and a member of the New York Society of Security Analysts. Mr. Schwartz
is a member of an investment management team that manages both the Pilgrim
Global Corporate Leaders Fund and Pilgrim International Fund. Prior to joining
LMC in 1993, he was Vice President of European Research Sales with Cheuvreux De
Virieu in Paris and New York, serving the institutional market. Prior to
Cheuvreux, Mr. Schwartz was affiliated with Olde and Co. and Kidder, Peabody as
a stockbroker.
<PAGE>
Effective October 1, 2000, Andrew Chow, Vice President and Portfolio
Manager of Pilgrim Investments, will be primarily responsible for the day-to-day
management of Convertible Fund. Prior to joining Pilgrim Investments in August,
2000, Mr. Chow was the portfolio manager of the Conseco Convertible Securities
Fund since 1998. He joined Conseco in 1991 where he was also responsible for
managing convertible securities accounts.
Following the assumption of portfolio management duties by Pilgrim
Investments, portfolio turnover may be higher than usual in connection with the
potential restructuring of the holdings of these Funds to reflect the management
style of Pilgrim Investments. Such potential restructuring may result in
transactional costs for the Funds and may result in accelerated capital gain
distributions as a result of the turnover.
2. CHANGE IN DESCRIPTION OF INVESTMENT STRATEGY FOR PILGRIM WORLDWIDE GROWTH
FUND.
Effective October 1, 2000, the following disclosure will replace the
disclosure under "Pilgrim Worldwide Growth Fund -- Investment Strategy" on page
30 of the Prospectus:
Under normal conditions the Fund invests at least 65% of its total assets
in securities of issuers located in at least three different countries, one
of which normally includes the U.S. The Fund normally invests at least 75%
of its total assets in common stock. The Fund may invest in companies
located in countries with emerging securities markets when the Adviser
believes they present attractive investment opportunities.
In considering common stock of US companies, the Adviser selects companies
that it believes have above average prospects for growth. The companies may
have a large, medium or small market capitalization. The Adviser seeks
companies expected to benefit most from major social, economic and
technological trends that are likely to shape the future of business and
commerce over the next three to five years in the U.S. This trend-oriented
approach is combined with fundamental research to guide stock selection and
the structure of the U.S. portion of the portfolio.
In considering the common stock of non-U.S. companies, the Adviser selects
companies that it believes offer the best relative value in a number of
different categories and, as a result, the best prospects for capital
appreciation. Such categories may include, but are not limited to,
companies affected by important socio-economic trends (as described above
in the case of U.S. stock selection); companies based in certain regions;
and companies operating in major economic sectors. This relative value
seeking approach is combined with fundamental research to guide stock
selection and the structure of the non-U.S. portion of the portfolio.
From time to time, the Adviser reviews the allocation between U.S. stocks
and non-U.S. stocks with reference to the corresponding breakdown of market
capitalization in the major indices of global stocks and to other factors
deemed appropriate by the Adviser.
SAVE THIS SUPPLEMENT FOR FUTURE REFERENCE
