<PAGE> 1
SUPPLEMENT DATED SEPTEMBER 1, 1997
REPLACING THE SUPPLEMENT DATED MAY 1, 1997
TO PROSPECTUS DATED MAY 1, 1997
OF
THE SIERRA VARIABLE TRUST
9301 CORBIN AVENUE, SUITE 333
NORTHRIDGE, CALIFORNIA 91324
The Prospectus, dated May 1, 1997, 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 pages 20 and 21, add the following paragraph:
On July 1, 1997, Great Western Financial Corporation ("GWFC"), the
indirect parent of Sierra Advisors, the Fund's investment advisor, and
Washington Mutual, Inc. ("Washington Mutual"), a publicly held
financial services company, closed a previously announced Agreement and
Plan of Merger resulting in the merger of GWFC with and into a
wholly-owned subsidiary of Washington Mutual (the "Merger"). As a
result of the Merger, Sierra Advisors is an indirect subsidiary of
Washington Mutual.
In the section "MANAGEMENT OF THE TRUST -- SUB-ADVISORS" under the paragraph
beginning "SCUDDER, STEVENS & CLARK, INC." on page 22, add the following
paragraph after the first paragraph:
Scudder, Stevens & Clark, Inc. ("Scudder") has entered into an
agreement with The Zurich Group ("Zurich"), an international insurance
and financial services organization, to form a new global investment
organization. Under the agreement, Scudder will combine with Zurich's
subsidiary, Zurich Kemper Investment, Inc. to form Scudder Kemper
Investments, Inc. After the transaction is completed, Zurich will own
approximately 70% of the new organization with the balance owned by the
new organization's officers and employees. Subject to certain
conditions being met, including regulatory approvals, the transaction
is expected to close in the fourth quarter of 1997.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
<PAGE> 2
SUPPLEMENT DATED SEPTEMBER 1, 1997
REPLACING THE SUPPLEMENT DATED MAY 1, 1997
TO PROSPECTUS DATED MAY 1, 1997
OF
THE SIERRA VARIABLE TRUST
9301 CORBIN AVENUE, SUITE 333
NORTHRIDGE, CALIFORNIA 91324
The Prospectus, dated May 1, 1997, of The Sierra Variable Trust (the "Trust")
relating to the CAPITAL GROWTH, GROWTH, BALANCED, VALUE AND INCOME PORTFOLIOS
and the GLOBAL MONEY FUND of the Trust is amended and supplemented as follows:
In the section "MANAGEMENT OF THE TRUST -- SIERRA SERVICES, SIERRA ADVISORS,
THEIR AFFILIATES AND THE PORTFOLIOS' SERVICE PROVIDERS -- INVESTMENT ADVISOR OF
THE PORTFOLIOS," add the following paragraph after the second paragraph:
On July 1, 1997, Great Western Financial Corporation ("GWFC"), the
indirect parent of Sierra Services, the Portfolios' investment advisor,
and Washington Mutual, Inc. ("Washington Mutual"), a publicly held
financial services company, closed a previously announced Agreement and
Plan of Merger resulting in the merger of GWFC with and into a
wholly-owned subsidiary of Washington Mutual (the "Merger"). As a
result of the Merger, Sierra Services is an indirect subsidiary of
Washington Mutual.
In the section "INVESTMENT ADVISOR AND INVESTMENT SUB-ADVISORS OF THE UNDERLYING
FUNDS -- INVESTMENT SUB-ADVISORS OF THE UNDERLYING FUNDS" under the paragraph
beginning "SCUDDER, STEVENS & CLARK, INC.," add the following paragraph after
the first paragraph:
Scudder, Stevens & Clark, Inc. ("Scudder") has entered into an
agreement with The Zurich Group ("Zurich"), an international insurance
and financial services organization, to form a new global investment
organization. Under the agreement, Scudder will combine with Zurich's
subsidiary, Zurich Kemper Investment, Inc. to form Scudder Kemper
Investments, Inc. After the transaction is completed, Zurich will own
approximately 70% of the new organization with the balance owned by the
new organization's officers and employees. Subject to certain
conditions being met, including regulatory approvals, the transaction
is expected to close in the fourth quarter of 1997.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
