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SUPPLEMENT DATED APRIL 1, 1997
TO PROSPECTUS DATED JULY 1, 1996
OF
THE SIERRA VARIABLE TRUST
9301 CORBIN AVENUE, SUITE 333
NORTHRIDGE, CALIFORNIA 91324
The Prospectus, dated July 1, 1996 of The Sierra Variable Trust (the "Trust")
relating to the GLOBAL MONEY, SHORT TERM HIGH QUALITY BOND, SHORT TERM GLOBAL
GOVERNMENT, U.S. GOVERNMENT, CORPORATE INCOME, GROWTH AND INCOME, GROWTH,
EMERGING GROWTH and INTERNATIONAL GROWTH FUNDS of the Trust is amended and
supplemented as follows:
At the end of the section "MANAGEMENT OF THE TRUST -- INVESTMENT MANAGEMENT --
INVESTMENT ADVISOR" on page 20, add the following paragraph:
On March 6, 1997, Great Western Financial Corporation ("Great Western"),
the indirect parent of Sierra Advisors, the Funds' investment advisor,
and Washington Mutual, Inc. ("Washington Mutual"), a financial services
company, announced that they had entered into an Agreement and Plan of
Merger providing for the merger of Great Western with and into a
wholly-owned subsidiary of Washington Mutual (the "Merger"). Subject to
the satisfaction or waiver of certain conditions, including the receipt
of necessary shareholder and regulatory approvals, it is anticipated
that the Merger would close in the third quarter of 1997. Following the
Merger, Sierra Advisors would be an indirect subsidiary of Washington
Mutual. The Merger was announced following the announcement by H.F.
Ahmanson ("Ahmanson") of an unsolicited proposal for the merger of Great
Western and Ahmanson, which proposal was subsequently revised and is
outstanding.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
222231 (4/97)
