ALPHA SELECT FUNDS
Class A Shares
Class C Shares
Class I Shares
PROSPECTUS
______, 2000
TARGET SELECT EQUITY FUND
Investment Adviser:
CONCENTRATED CAPITAL MANAGEMENT, LP
Investment Sub-Advisers:
EVERGREEN INVESTMENT MANAGEMENT COMPANY
MERCURY ADVISORS
TURNER INVESTMENT PARTNERS, INC.
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this prospectus. Any
representation to the contrary is a criminal offense.
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<PAGE>
How to Read Your Prospectus
Alpha Select Funds is a mutual fund family that offers different classes of
shares in separate investment portfolios. At this time, the Funds offer only one
portfolio, the Target Select Equity Fund (the "Fund"). This prospectus gives you
important information about the Class A, Class C, and Class I Shares of the Fund
that you should know before investing. Please read this prospectus and keep it
for future reference.
Choosing Class A, Class C or Class I Shares
Class A, Class C and Class I Shares have different expenses and other
characteristics, allowing you to choose the class that best suits your needs.
You should consider the amount you want to invest, how long you plan to have it
invested, and whether you plan to make additional investments.
Class A Shares
o Front-end sales charge
o Lower annual expenses
o $1,000 minimum initial investment
Class C Shares
o Contingent deferred sales charge
o Higher distribution expenses
o $1,000 minimum initial investment
Class I Shares
o No sales charge
o No distribution expenses
o $500,000 minimum initial investment
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<PAGE>
This prospectus has been arranged into different sections so that you can easily
review this important information. On the next page, there is some general
information you should know about the Fund. For more detailed information about
the Fund, please see:
Page
----
FUND SUMMARY..........................................................XXX
INVESTMENTS AND PORTFOLIO MANAGEMENT..................................XXX
PURCHASING, SELLING AND EXCHANGING ALPHA SELECT FUNDS.................XXX
DIVIDENDS, DISTRIBUTIONS AND TAXES....................................XXX
FINANCIAL HIGHLIGHTS..................................................XXX
To obtain more information about Alpha Select Funds, please refer to the Back
Cover of the Prospectus.
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<PAGE>
Fund Summary
Investment Goal Long-term capital appreciation
Investment Focus Common stocks of U.S. and foreign issuers
Share Price Volatility High
Principal Investment Strategy Utilizing sub-advisers experienced in
selecting securities that have growth
potential or that are undervalued, the Fund
invests in U.S. and foreign companies
Investor Profile Investors seeking capital appreciation who
can withstand the share price volatility of
equity investing
Principal Strategy
The Target Select Equity Fund invests primarily in U.S. and foreign common
stocks and other equity securities of companies regardless of their market
capitalization. The Fund will invest in securities of companies operating in a
broad range of industries located in the U.S. and overseas.
The Fund uses a multi-manager approach, relying upon a number of sub-advisers
with differing investment philosophies to manage portions of the Fund's
portfolio under the general supervision of the Fund's adviser, Concentrated
Capital Management, LP ("CCM"). In selecting investments, the sub-advisers
employ different investment strategies: a growth strategy that emphasizes
above-average earnings potential; a global strategy that focuses on small
capitalization companies; a value strategy that is based on investing in all
capitalization companies; and a growth strategy that invests in mid-to large
capitalization companies. Other strategies may be introduced as additional or
replacement sub-advisers are hired.
Multi-Manager Approach
The Fund intends to employ a multi-manager approach to take advantage of the
best investment ideas of a number of sub-advisers. Each sub-adviser manages a
portion of the Fund's assets, and is expected to select a relatively small
number of securities, as few as 10, for its portion of the Fund per each
investment strategy. Such a focused security-selection process permits each
sub-adviser to act on only the investment ideas that it thinks have the greatest
return potential. CCM will ensure that the sub-advisers comply with the Fund's
investment policies and guidelines. CCM will also recommend the appointment of
additional or replacement sub-advisers to the Fund's Board of Trustees (the
"Board").
Risks
The Fund has its own investment goal and strategies for reaching that goal. The
Fund's advisers will invest Fund assets in a way that each believes will help
the Fund achieve its goal. Still, investing in the Fund involves risk and there
is no guarantee that the Fund will achieve its goal. The advisers' judgments
about the markets, the economy, or companies may not anticipate actual market
movements, economic conditions or company performance, and these judgments may
Page 4 of 24
<PAGE>
affect the return on your investment. In fact, no matter how good a job the
advisers do, you could lose money on your investment in the Fund, just as you
could with other investments. A Fund share is not a bank deposit and it is not
insured or guaranteed by the FDIC or any government agency.
The value of your investment in the Fund is based on the market prices of the
securities the Fund holds. Since it purchases equity securities, the Fund is
subject to the risk that stock prices will fall over short or extended periods
of time. Historically, the equity markets have moved in cycles, and the value of
the Fund's securities may fluctuate drastically from day to day. Individual
companies may report poor results or be negatively affected by industry and/or
economic trends and developments. The prices of securities issued by such
companies may suffer a decline in response. In addition, the Fund is subject to
the risk that equity securities generally may underperform compared to debt
securities and other asset classes. These factors contribute to price
volatility, which is the principal risk of investing in the Fund. The Fund is
non-diversified, which means that it may invest in the securities of fewer
issuers than a diversified fund. As a result, the Fund may be more susceptible
to a single adverse economic or political occurrence affecting one or more of
these issuers, and may experience increased volatility due to its investments in
those securities as compared to a diversified fund.
The Fund's investment approach seeks to generate positive returns from the
efforts of separate sub-advisers who each manage a portion of the Fund's assets
using a specific style. There is a risk, therefore, that the combined
performance of the Fund's various sub-advisers will lag that of funds that
employ a single strategy or style. There is also a risk that a sub-adviser's
performance in its chosen strategy will lag that of other advisers that utilize
a similar approach.
Investing in issuers located in foreign countries poses additional risks since
political and economic events unique to a country or region will affect those
markets and their issuers. These events will not necessarily affect the U.S.
economy or similar issuers located in the United States. In addition,
investments in foreign countries are generally denominated in a foreign
currency. As a result, changes in the value of those currencies compared to the
U.S. dollar may affect (positively or negatively) the value of a Fund's
investments. These currency movements may happen separately from and in response
to events that do not otherwise affect the value of the security in the issuer's
home country. While ADRs are denominated in U.S. dollars, they are subject to
currency risk to the extent the underlying stocks are denominated in foreign
currencies.
Any micro, small and medium capitalization companies the Fund invests in may be
more vulnerable to adverse business or economic events than larger, more
established companies. In particular, these micro, small and mid-sized companies
may have limited product lines, markets and financial resources, and may depend
upon a relatively small management group. In addition, the share prices of
micro-capitalization companies may be extremely volatile.
Performance Information
The Fund may engage in frequent and active trading of portfolio securities to
achieve its investment objective. A high portfolio turnover rate involves
greater expenses to the Fund, including brokerage commissions and other
transaction costs, and may generate more short-term gains for shareholders.
The bar chart and the performance table below illustrate the risks and
volatility of an investment in the Fund. Of course, the Fund's past performance
does not necessarily indicate how the Fund will perform in the future.
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<PAGE>
The performance shown is for the TIP Funds' TIP Target Select Equity Fund (the
"TIP Fund"), the Fund's predecessor. The Target Select Equity Fund became part
of the Alpha Select Funds on ______, 2000.
The performance information below reflects the performance of Turner Investment
Partners, Inc., ("Turner") the TIP Fund's principal investment adviser, and
several sub-advisers. Under the TIP Fund's multiple sub-adviser structure,
Turner was responsible for the continuous review, supervision and administration
of the TIP Fund's investment program, which included overseeing two other
sub-advisers. In addition, Turner was also responsible for making day-to-day
investment decisions for some of the assets of the TIP Fund. Because of this
dual role as day-to-day investment adviser and overall manager of the investment
program, Turner is essentially responsible for the TIP Fund's performance
reflected below. Under the Fund's multiple sub-adviser structure, CCM will
similarly be responsible for the continuous review, supervision and
administration of the Fund's investment program, which includes overseeing
Turner as one of three sub-advisers. However, CCM will not be responsible for
making day-to-day investment decisions for the Fund, and Turner will only manage
approximately 15-35% of the Fund's assets. In addition, Turner employed
sub-advisers that are different from those employed by CCM in managing the Fund.
As a result of these differences, this performance information represents some
indication of the risks and volatility of an investment in the Fund, and should
be reviewed recognizing these material differences.
This bar chart shows changes in the performance of the Fund's Shares from year
to year for two years.*
1998 25.45%
1999 113.07%**
* The performance information shown above is based on a calendar year. The
year-to-date return as of June 30, 2000 was 23.83%. Performance would have been
lower if Turner had not waived fees and reimbursed expenses in 1998 and 1999.
**The Fund's favorable performance in 1999 was affected by a number of factors
that may not have the same effect on the Fund's performance in the future. These
factors include participation in the initial public offerings, unusual market
conditions and the relatively small size of the fund compared with any one
investment.
Best Quarter Worst Quarter
43.45% -17.08%
(12/31/99) (9/30/98)
This table compares the Fund's average annual total returns for the periods
ended December 31, 1999, to those of the Russell 3000 Index.
Since Inception
1 Year (1/1/98)
------- ---------------
TIP Funds' Target Select Equity Fund 113.07% 63.50%
Russell 3000 Index 20.90% 22.51%
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What is an Index?
An index measures the market price of a specific group of securities in a
particular market of securities in a market sector. You cannot invest directly
in an index. An index does not have an investment adviser and does not pay any
commissions or expenses. If an index had expenses, its performance would be
lower. The Russell 3000 Index is a widely-recognized, capitalization-weighted
(companies with larger market capitalizations have more influence than those
with smaller market capitalizations) index of the 3,000 largest U.S. companies.
Fund Fees and Expenses
This table describes the shareholder fees that you may pay if you buy and hold
Fund Shares. You would pay these fees directly from your investment in the Fund.
Shareholder Fees (fees paid directly from your investment)
<TABLE>
<CAPTION>
Class A Shares Class C Shares Class I Shares
-------------- -------------- --------------
<S> <C> <C> <C>
Maximum Sales Charge (Load) Imposed on Purchases (as a
percentage of offering price)* 5.50% None None
Maximum Deferred Sales Charge (Load) (as a percentage of
net asset value)** None 1.00% None
</TABLE>
* This sales charge varies depending upon how much you invest. See
"Purchasing Fund Shares."
** This sales charge is imposed if you sell Class C Shares within one year of
your purchase. See "Selling Fund Shares."
This table describes the fees and expenses that you may pay if you buy and hold
Fund shares.
Annual Fund Operating Expenses (expenses deducted from Fund assets)
<TABLE>
<CAPTION>
Class A Shares Class C Shares Class I Shares
-------------- -------------- --------------
<S> <C> <C> <C>
Investment Advisory Fees 1.0625%* 1.0625%* 1.0625%*
Distribution (12b-1) Fees None 0.75% None
Other Expenses 1.789%** 1.789%** 1.539%**
------ ------ ------
Total Annual Fund Operating Expenses 2.8515%*** 3.6015%*** 2.6015%***
Fee Waivers and Expense Reimbursements (1.3815%) (1.3815%) (1.3815%)
------ ------ ------
Net Total Operating Expenses 1.47% 2.22% 1.22%
</TABLE>
* The advisory fee is subject to a performance adjustment based on the Fund's
performance relative to the performance of the Russell 3000 Index after the
Fund's first year of operations.
** Other Expenses are estimated for the current year.
*** The Fund's Adviser has contractually agreed to waive fees and to reimburse
expenses in order to keep total operating expenses of the Class A, Class C
and Class I Shares from exceeding 1.47%, 2.22% and 1.22%, respectively, for
a period of one year, or from exceeding 1.75%, 2.50% and 1.50%,
respectively, in any subsequent year.
For more information about these fees, see "Investment Adviser" and
"Distribution of Fund Shares."
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<PAGE>
Example
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated and then redeem all of
your shares at the end of those periods. The Example also assumes that each year
your investment has a 5% return and Fund operating expenses remain the same.
Although your actual costs and returns might be different, your approximate
costs of investing $10,000 in the Fund would be:
If you sell your shares at the end of the period:
1 Year 3 Years
------ -------
Class A Shares $691 $1045
Class C Shares $325 $752
Class I Shares $124 $447
If you do not sell your shares at the end of the period:
1 Year 3 Years
------ -------
Class A Shares $691 $1045
Class C Shares $225 $752
Class I Shares $124 $447
Page 8 of 24
<PAGE>
The Fund's Other Investments
In addition to the investments and strategies described in this prospectus, the
Fund also may invest in other securities, use other strategies and engage in
other investment practices. These investments and strategies, as well as those
described in this prospectus, are described in detail in our Statement of
Additional Information (SAI). Of course, there is no guarantee that the Fund
will achieve its investment goal.
The investments and strategies described throughout this prospectus are those
that the Fund uses under normal conditions. During unusual economic or market
conditions, or for temporary defensive purposes, the Fund may invest up to 100%
of its assets in cash, repurchase agreements and short-term obligations that
would not ordinarily be consistent with the Fund's objectives. The Fund may also
invest a portion of its assets in cash for liquidity purposes as necessary. The
Fund will make investments inconsistent with its objectives only if the Adviser
believes that the risk of loss outweighs the opportunity for gains.
Investment Adviser
CCM, an SEC-registered adviser, serves as the Adviser to the Fund. CCM makes
recommendations to the Trustees with respect to the appropriate allocation of
assets to each of the Fund's Sub-Advisers. Also as the Fund's Adviser, CCM is
authorized to make investment decisions for the Fund and continuously review,
supervise and administer the Fund's investment program. The Adviser also ensures
compliance with the Fund's investment policies and guidelines. In the future,
the Trust expects to operate as a "manager of managers" fund under an SEC
exemptive order. This type of order will permit the Adviser to hire or replace
Sub-Advisers with Board (rather than shareholder) approval. We will notify you
if we make this change.
CCM was formed on May 19, 2000. For its services, CCM is entitled to base
investment advisory fees of 1.0625%. However, these fees may be higher or lower
depending on the Fund's performance relative to a benchmark. If the Fund
outperforms its benchmark by a set amount, CCM will receive higher advisory
fees. Conversely, if a Fund underperforms its benchmark by the same amount, CCM
will receive lower advisory fees. Accordingly, the overall fee may vary by 0.15%
either way. The Fund's SAI contains detailed information about the Fund's
benchmark, as well as any possible performance-based adjustments to CCM fees.
These performance-based adjustments will take effect after the Fund has been in
operation for more than one year.
Sub-Advisers
At the outset of operations, CCM will employ three sub-advisers who will use
approximately four investment styles to manage the Fund. Each style will be
employed with regards to approximately 15-35% of the Fund's total assets.
Periodically, the Fund will be rebalanced to preserve this approximate 15-35%
allocation. CCM will oversee the sub-advisers who manage the separate portfolios
of the Fund. The three sub-advisers will be Turner, Mercury Advisors, and
Evergreen Investment Management Company ("Evergreen").
Turner will employ a growth style that emphasizes investments in equities
securities in companies with above average earnings growth prospects. It will
employ an earnings momentum
Page 9 of 24
<PAGE>
strategy that concentrates on companies with more volatile and accelerating
growth rates. Turner will focus on a relatively small number of securities
issues without distinction as to capitalization. Robert E. Turner serves as
portfolio manager of the portion of the Fund's assets devoted to this strategy.
Mercury Advisors will employ two strategies. One strategy will adopt a global
approach by investing at least 66% of the assets in small capitalization equity
securities from at least three different countries, including the United States.
The securities will be small capitalization. The balance of the assets, if any,
may be invested in larger cap companies or debt securities. Kenneth L. Chiang
serves as the portfolio manager of the portion of the Fund's assets devoted to
this strategy.
The other strategy employed by Mercury will involve a value approach that seeks
capital appreciation by investing in a concentrated portfolio of undervalued
equity securities of companies that are believed by Mercury to be currently
mispriced in the marketplace relative to their future operating prospects. Often
these equities are experiencing some temporary operational difficulties that
have caused them to become out-of-favor. The portfolio is expected to have
valuation ratios, (i.e., price-to-earnings or price-to-book values) below those
of the broader market. Robert Martorelli serves as the Portfolio Manager of the
portion of the Fund's assets devoted to this strategy.
Evergreen will employ a growth style of investing and will invest in a
relatively small number of issuers of primarily mid to large-capitalizations.
Evergreen emphasizes earnings growth in its selection of issuers. It will select
companies that it believes have recorded a consistent record of earnings growth
and/or have the potential for an acceleration of earnings growth. Maureen
Cullinane serves as the portfolio manager of the portion of the Fund's assets
devoted to this strategy.
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<PAGE>
Purchasing, Selling and Exchanging Fund Shares
In order to open a new account, you must complete and mail the New Account
Application that you receive with this prospectus.
All trades must be received by the Fund's Transfer Agent by 4:00 PM EST. Your
check must be made payable to the Alpha Select Funds or wires must be sent to
the instructions below.
The minimum initial investment for Class A Shares is $1,000. The minimum initial
investment for Class C Shares is $1,000 ($500 for retirement plans). The minimum
subsequent investment for Class A and Class C Shares is $100. The minimum
initial investment for Class I Shares is $500,000. The minimum subsequent
investment for Class I Shares is $5,000.
--------------------------------------------------------------------------------
Once you are a shareholder of the Alpha Select Funds you may do the following:
--------------------------------------------------------------------------------
* Purchase, sell or exchange Fund shares by phone. Call 1-888-847-7654
between 9:00 AM and 4:00 PM EST Monday through Friday and press 3 to place
a trade.
--------------------------------------------------------------------------------
* Purchase, sell or exchange Fund shares by mail. Shareholders can mail trade
requests to:
By regular mail By express or overnight mail
Alpha Select Funds Alpha Select Funds
P.O. Box 219805 c/o DST Systems Inc.
Kansas City, MO 64121-6805 330 W. 9th Street
Kansas City, MO 64105
--------------------------------------------------------------------------------
* Purchase Fund shares by wiring funds to:
United Missouri Bank of Kansas NA
ABA #101000695
Account # 9870601168
Further Credit: Target Select Equity Fund, shareholder name and Alpha
Select Funds account number
Page 11 of 24
<PAGE>
The minimum initial investment for Class A Shares is $1,000. The minimum initial
investment for Class C Shares is $1,000 ($500 for retirement plans). The minimum
subsequent investment for Class A and Class C Shares is $100. The minimum
initial investment for Class I Shares is $500,000. The minimum subsequent
investment for Class I Shares is $5,000. The Fund reserves the right to waive
the minimum initial investment, and may do so for financial intermediaries who
purchase shares through a brokerage firm or a mutual fund marketplace.
This section tells you how to buy, sell (sometimes called "redeem") or exchange
shares of the Fund.
Purchasing Alpha Select Fund Shares
When Can You Purchase Shares?
You may purchase shares on any day that the New York Stock Exchange (NYSE) is
open for business (a Business Day).
We may reject any purchase order if we determine that accepting the order would
not be in the best interests of the Fund or its shareholders.
To open an account:
o By Mail Please send your completed application, with a check payable to
Alpha Select Funds, to the address listed on this page. Your check must be
in U.S. dollars and drawn on a bank located in the United States. We do not
accept third party checks, credit card checks or cash.
o By Wire Please call us at 1-888-847-7654 (option 3) to let us know that you
intend to make your initial investment by wire. You will be given an
account number and fax number to which you should send your completed New
Account Application. Once this is complete, you will need to instruct your
bank to wire money to: United Missouri Bank of Kansas, N.A.; ABA
#10-10-00695; for Account Number 98-7060-116-8; Further Credit: [Target
Select Equity Fund]. The shareholder's name and account number must be
specified in the wire.
Systematic Investment Plan
If you have a checking or savings account with a bank, you may purchase Class A
or Class C Shares automatically through regular deductions from your account.
Please call 1-888-847-7654 for information regarding participating banks. With a
$250 minimum initial investment, you may begin regularly scheduled investments
from $50 up to $250 once or twice a month.
Page 12 of 24
<PAGE>
Sales Charges
Front-End Sales Charges -- Class A Shares
The amount of any front-end sales charge included in your offering price varies,
depending on the amount of your investment:
<TABLE>
<CAPTION>
Your Sales Charge as a Percentage of Your Sales Charge as a Percentage
If Your Investment is: of Offering Price of Your Net Investment
--------------------------------- ------------------------------------ ---------------------------------
<S> <C> <C>
Less than $25,000 5.50% 5.82%
$25,000 but less than $50,000 5.25% 5.54%
$50,000 but less than $100,000 4.50% 4.71%
$100,000 but less than $250,000 3.50% 3.63%
$250,000 but less than $500,000 3.00% 3.10%
$500,000 but less than $1,000,000 2.00% 2.04%
$1,000,000 and over None
</TABLE>
Waiver of Front-End Sales Charge -- Class A Shares
The front-end sales charge will be waived on Class A Shares purchased: (1)
through reinvestment of dividends and distributions; (2) through an asset
allocation account opened by a financial intermediary; (3) by persons
repurchasing shares they redeemed within the last 60 days (see "Repurchase of
Class A Shares"); (4) by employees, affiliates, and members of the immediate
family, of firms that have entered into a selling agreement with the
Distributor; (5) by persons reinvesting distributions from qualified employee
benefit retirement plans and rollovers from individual retirement accounts
("IRAs") previously with firms that have entered into a selling agreement with
the Distributor; (6) by persons investing an amount less than or equal to the
value of an account distribution when an account for which a bank affiliated
with firms that have entered into a selling agreement with the Distributor acted
in a fiduciary, administrative, custodial or investment advisory capacity is
closed; or (7) through dealers, retirement plans, asset allocation programs and
financial institutions that, under their dealer agreements with the Distributor
or otherwise, do not receive any or receive a reduced portion of the front-end
sales charge. The Fund may also enter into waiver arrangements with various
other financial intermediaries who sell Class A Shares of the Fund.
Currently the only fund offered by the Alpha Select Funds is the Fund. If
additional Alpha Select funds are offered, purchases of Class A Shares of all
such funds will be aggregated for purposes of determining sales charge waivers.
Repurchase of Class A Shares
You may repurchase any amount of Class A Shares of any Alpha Select fund at net
asset value per share (NAV) (without the normal front-end sales charge), equal
to or less than the value of any amount of Class A Shares (for which you paid a
front-end sales charge) that you redeemed within the past 60 days. NAV for one
Fund share is the value of that share's portion of all of the net assets of the
Fund. In effect, this allows you to repurchase shares that you may have had to
redeem, without repaying the front-end sales charge. To exercise this privilege,
we must receive
Page 13 of 24
<PAGE>
your purchase order within 60 days of your redemption. In addition, you must
notify us when you send in your purchase order that you are repurchasing shares.
Reduced Sales Charges -- Class A Shares
Rights of Accumulation. In calculating the appropriate sales charge rate, this
right allows you to add the value of the Class A Shares you already own to the
amount that you are currently purchasing. We will combine the value of your
current purchases with the current value of any Class A Shares you purchased
previously for (i) your account, (ii) your spouse's account, (iii) a joint
account with your spouse, or (iv) your minor children's trust or custodial
accounts. A fiduciary purchasing shares for the same fiduciary account, trust or
estate may also use this right of accumulation. We will only consider the value
of Class A Shares purchased previously that were sold subject to a sales charge.
To be entitled to a reduced sales charge based on shares already owned, you must
ask us for the reduction at the time of purchase. You must provide us with your
account number(s) and, if applicable, the account numbers for your spouse and/or
children (and provide the children's ages). We may amend or terminate this right
of accumulation at any time.
Letter of Intent. You may purchase Class A Shares at the sales charge rate
applicable to the total amount of the purchases you intend to make over a
13-month period. In other words, a Letter of Intent allows you to purchase Class
A Shares of a Fund over a 13-month period and receive the same sales charge as
if you had purchased all the shares at the same time. We will only consider the
value of Class A Shares sold subject to a sales charge. To be entitled to a
reduced sales charge based on shares you intend to purchase over the 13-month
period, you must send us a Letter of Intent. Class A Shares purchased with
dividends or distributions will not be included in the calculation. In
calculating the total amount of purchases you may include in your letter
purchases made up to 90 days before the date of the Letter. The 13-month period
begins on the date of the first purchase, including those purchases made in the
90-day period before the date of the Letter. Please note that the purchase price
of these prior purchases will not be adjusted.
You are not legally bound by the terms of your Letter of Intent to purchase the
amount of your shares stated in the Letter. The Letter does, however, authorize
us to hold in escrow [5]% of the total amount you intend to purchase. If you do
not complete the total intended purchase at the end of the 13-month period, the
transfer agent will redeem the necessary portion of the escrowed shares to make
up the difference between the reduced rate sales charge (based on the amount you
intended to purchase) and the sales charge that would normally apply (based on
the actual amount you purchased).
Combined Purchase/Quantity Discount Privilege. When calculating the appropriate
sales charge rate, we will combine same day purchases of Class A Shares (that
are subject to a sales charge) made by you, your spouse and your minor children
(under age 21). This combination also applies to Class A Shares you purchase
with a Letter of Intent.
Page 14 of 24
<PAGE>
Contingent Deferred Sales Charges -Class C Shares
If you sell your Class C Shares within the first year after your purchase, you
will pay a contingent deferred sales charge equal to Class C Shares of either
(1) the NAV of the shares at the time of purchase, or (2) NAV of the shares next
calculated after we receive your sale request, whichever is less. The maximum
deferred sales charge as a percentage of the net amount invested is 1.00%. The
sales charge does not apply to Class C Shares you purchase through reinvestment
of dividends or distributions. So you never pay a deferred sales charge on any
increase in your investment above the initial offering price. The sales charge
does not apply to exchanges of Class C Shares of the Fund for Class C Shares of
another Alpha Select Fund. Currently, the only fund offered by Alpha Select
Funds is the Fund.
The contingent deferred sales charge will be waived if you sell your Class C
Shares for the following reasons: (1) to make certain withdrawals from a
retirement plan (not including IRAs); (2) because of death or disability; or (3)
for certain payments under the Systematic Withdrawal Plan (discussed below).
How Fund Prices are Calculated
The price per share (the offering price) will be the NAV next determined after
the Fund receives your purchase order plus, in the case of Class A Shares, the
applicable front-end sales charge. The Fund's NAV is calculated once each
Business Day at the regularly-scheduled close of normal trading on the NYSE
(normally, 4:00 p.m., Eastern time). So, for you to receive the current Business
Day's NAV, generally we must receive your purchase order before 4:00 p.m.,
Eastern time.
In calculating NAV, the Fund generally values its investment portfolio at market
price. If market prices are unavailable or the Fund thinks that they are
unreliable, fair value prices may be determined in good faith using methods
approved by the Board.
Purchasing Additional Shares
o By Mail Please send your check payable to Alpha Select Funds along with a
signed letter stating the name of the Target Select Equity Fund and your
account number.
o By Phone Current shareholders are eligible to purchase shares by phone if
they have requested that privilege by checking the appropriate box on the
New Account Application. Shareholders who have requested telephone
privileges can call 1-888-847-7654 (option 3) and give the Fund and account
number they would like to make a subsequent purchase into. They must then
instruct their bank to wire the money by following the instructions listed
on page 11.
Page 15 of 24
<PAGE>
Additional Information
You may also buy shares through accounts with brokers and other institutions
that are authorized to place trades in Fund shares for customers. If you invest
through an authorized institution, you will have to follow its procedures, which
may be different from the procedures for investing directly. Your institution
may charge a fee for its services, in addition to the fees charged by the Fund.
You will also generally have to address your correspondence or questions
regarding the Fund to your institution.
Selling Alpha Select Funds
If you own shares directly, you may sell your shares on any Business Day by
contacting us directly by mail or telephone. You may also sell your shares by
contacting your financial institution by mail or telephone. The sale price of
each share will be the next NAV determined after we receive your request less,
in the case of Class C Shares, any applicable deferred sales charge.
If you are a holder of Class A and/or Class C Shares, you may sell shares by
following procedures established when you opened your account or accounts. If
you have questions, you should call 1-888-847-7654. If you own shares through an
account with a broker or other institution, you should contact that broker or
institution to sell your shares. If you would like to sell $50,000 or more of
your shares, you should notify us in writing and include a signature guarantee.
o By Mail If you wish to redeem shares of the Fund, you should send us a
letter with your name, Fund name and account number and the amount of your
request. All letters must be signed by the owner(s) of the account. All
proceeds will be mailed or wired (depending on instructions given) to the
address or instructions given to us when the account was established. If
you would like the proceeds sent to either a different bank account or
address, a signature guarantee is required.
o By Phone When filling out a New Account Application shareholders are given
the opportunity to establish telephone redemption privileges. If
shareholders elect to take advantage of this privilege they will be able to
redeem shares of the Alpha Select Funds by calling 1-888-847-7654 (option
3) and informing one of our representatives.
Systematic Withdrawal Plan
If you have at least $10,000 in your account, you may use the Systematic
Withdrawal Plan. Under the plan you may arrange monthly, quarterly, semi-annual
or annual automatic withdrawals of at least $50 from the Fund. The proceeds of
each withdrawal will be mailed to you by check or, if you have a checking or
savings account with a bank, electronically transferred to your account. Please
call 1-888-847-7654 for information regarding banks that participate in the
Systematic Withdrawal Plan.
Page 16 of 24
<PAGE>
Signature Guarantees
A signature guarantee is a widely accepted way to protect shareholders by
verifying the signature in certain circumstances including, (1) written requests
for redemptions in excess of $50,000; (2) all written requests to wire
redemption proceeds to a bank other than the bank previously designated on the
account application; and (3) redemption requests that provide that the
redemption proceeds should be sent to an address other than the address of
record or to a person other than the registered shareholder(s) for the account.
Signature guarantees can be obtained from any of the following institutions: a
national or state bank, a trust company, a credit union, a federal savings and
loan association, or a broker-dealer that is a member of a national securities
exchange. A notarized signature is not sufficient.
Redemptions in Kind
The Fund generally pays sale (redemption) proceeds in cash. However, under
unusual conditions that make the payment of cash unwise (and for the protection
of the Fund's remaining shareholders) the Fund might pay all or part of your
redemption proceeds in liquid securities with a market value equal to the
redemption price (redemption in kind). Although it is highly unlikely that your
shares would ever be redeemed in kind, you would probably have to pay brokerage
costs to sell the securities distributed to you, as well as taxes on any capital
gains from the sale as with any redemption.
Receiving Your Money
Normally, the Fund will send your sale proceeds within three Business Days after
they receive your request, but it may take up to seven days. Your proceeds can
be wired to your bank account (subject to a $10 wire fee) or sent to you by
check. If you recently purchased your shares by check or through ACH, proceeds
from the redemption may not be available until your check has cleared (which may
take up to 15 days from your date of purchase).
Exchanging Fund Shares
When you exchange shares, you are really selling your shares and buying other
Alpha Select Fund shares. So, your sale price and purchase price will be based
on the NAV next calculated after we receive your exchange request. You should
recognize, however, that the Alpha Select Funds currently offer no other funds.
You may exchange your shares on any Business Day by contacting the Alpha Select
Funds directly by mail or telephone. You may also exchange shares through your
financial institution by mail or telephone. If you recently purchased shares by
check or through ACH, you may not be able to exchange your shares until your
check has cleared (which may take up to 15 days from your date of purchase).
This exchange privilege may be changed or canceled at any time upon 60 days'
notice.
Page 17 of 24
<PAGE>
Class A Shares
You may exchange Class A Shares of the Fund for Class A Shares of any other
Alpha Select Fund. If you exchange shares that you purchased without a sales
charge or with a lower sales charge into a fund with a sales charge or with a
higher sales charge, the exchange is subject to an incremental sales charge
(e.g., the difference between the lower and higher applicable sales charges). If
you exchange shares into a fund with the same, lower or no sales charge there is
no incremental sales charge for the exchange.
Class C Shares
You may exchange Class C Shares of the Fund for Class C Shares of any other
Alpha Select Fund. You will not pay a contingent deferred sales charge on
exchanges of Class C Shares.
Class I Shares
You may exchange Class I Shares of the Fund for Class I Shares of any other
Alpha Select Fund.
Presently, only the Fund exists as a series of the Alpha Select Funds.
Other Policies
For Customers of Financial Institutions
If you purchase, sell or exchange Fund shares through a financial institution
(rather than directly from us), you may have to transmit your purchase, sale and
exchange requests to your financial institution at an earlier time for your
transaction to become effective that day. This allows the financial institution
time to process your request and transmit it to us. For more information about
how to purchase, sell or exchange Fund shares through your financial
institution, you should contact your financial institution directly.
Telephone Transactions
Purchasing, selling and exchanging Fund shares over the telephone is extremely
convenient, but not without risk. Although we have certain safeguards and
procedures to confirm the identity of callers and the authenticity of
instructions, we are not responsible for any losses or costs incurred by
following telephone instructions we reasonably believe to be genuine. If you or
your financial institution transact with us over the telephone, you will
generally bear the risk of any loss.
Suspension of Your Right to Sell Your Shares
The Fund may suspend your right to sell your shares if the NYSE restricts
trading, the SEC declares an emergency or for other reasons. More information
about this is in the Fund's SAI.
Page 18 of 24
<PAGE>
Involuntary Sales of Your Shares
If your account balance drops below the required minimum of $1,000 for Class A
or Class C Shares because of redemptions, you may be required to sell your
shares. You will always be given at least 60 days' written notice to give you
time to add to your account and avoid selling your shares.
Distribution and Shareholder Servicing of Fund Shares
SEI Investments Distribution Co. (SIDCO.) is the distributor of the Fund. SIDCO.
receives no compensation for distributing the Fund's shares.
The Fund has adopted a plan for its Class C Shares that allows the Fund to pay
distribution and shareholder service fees for the servicing of shareholder
accounts, and the sale and distribution of its shares. In addition, the Fund has
adopted a plan for its Class A and C Shares that allows the Fund to pay
shareholder servicing fees for provision of a broad range of shareholder and
administrative services. Because these fees are paid out of the Fund's assets
continuously, over time these fees will increase the cost of your investment and
may cost you more than paying other types of sales charges.
For Class C Shares, the distribution fee, as adopted pursuant to Rule 12b-1, is
0.75% of the average daily net assets of the Fund. In addition, Class C Shares
pay a shareholder servicing fee of 0.25% of average daily net assets.
For Class A Shares, shareholder servicing fees, as a percentage of average daily
net assets, are 0.25%.
Class I Shares do not pay distribution or shareholder servicing fees.
The Distributor may, from time to time in its sole discretion, institute one or
more promotional incentive programs from dealers, which will be paid for by the
Distributor. Under any such program, the Distributor may provide incentives, in
the form of cash or other compensation, including merchandise, airline vouchers,
trips and vacation packages, to dealers selling shares of the Fund.
Dividends and Distributions
The Fund distributes its investment income annually as a dividend to
shareholders (the "Distributor"). The Fund makes distributions of capital gains,
if any, at least annually.
If you own Fund shares on the Fund's record date, you will be entitled to
receive the distribution.
You will receive dividends and distributions in the form of additional Fund
shares unless you elect to receive payment in cash. To elect cash payment, you
must notify the Fund in writing prior to the date of the distribution. Your
election will be effective for dividends and distributions paid after we receive
your written notice. To cancel your election, simply send the Fund written
notice.
Page 19 of 24
<PAGE>
Taxes
Please consult your tax advisor regarding your specific questions about federal,
state and local income taxes. Summarized below are some important tax issues
that affect the Fund and its shareholders. This summary is based on current tax
laws, which may change.
The Fund will distribute substantially all of its income and capital gains, if
any. The dividends and distributions you receive may be subject to federal,
state and local taxation, depending upon your tax situation. Income
distributions are generally taxable at ordinary income tax rates. Capital gains
distributions are generally taxable at the rates applicable to long-term capital
gains. Distributions you receive from the Fund may be taxable whether or not you
reinvest them. Each sale or exchange of Fund shares is a taxable event.
More information about taxes is in the SAI.
Page 20 of 24
<PAGE>
Financial Highlights
The table that follows presents performance information about shares of the TIP
Funds' TIP Target Select Equity Fund, the Fund's predecessor. The Fund became
part of the Alpha Select Funds in _______, 2000. This information is intended to
help you understand the Fund's financial performance for the period of the
Fund's operations. Some of this information reflects financial information for a
single Fund share. The total returns in the table represent the rate that you
would have earned (or lost) on an investment in the Fund, assuming you
reinvested all of your dividends and distributions. The Financial Highlights for
each period ended September 30, have been audited by Ernst & Young LLP,
independent auditors whose report, along with the Fund's financial statements,
appears in the TIP Funds' TIP Target Select Equity Fund annual report that
accompanies our SAI. The Financial Highlights for the period ended March 31,
2000 are unaudited and appear in the TIP Funds' TIP Target Select Equity Fund
semi-annual report. You can obtain the TIP Funds' TIP Target Select Equity Fund
semi-annual and annual reports, which contain more performance information, at
no charge by calling 1-888-847-7654.
Page 21 of 24
<PAGE>
Financial Highlights
TIP Funds
For a Share Outstanding Throughout each Period Ended September 30;
<TABLE>
<CAPTION>
Ratio of Net
Net Realized Net Net Investment
Asset Net and Distributions Distributions Asset Assets Ratio Income
Value Investment Unrealized from Net from Value End of Expenses (Loss)
Beginning Income Gains on Investment Capital End Total of Period to Average to Average
of Period (Loss) Investments Income Gains of Period Return(1) (000) Net Assets Net Assets
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TIP Target Select Equity Fund*
Interim $17.17 (0.01) 11.10 -- (6.01) $22.25 77.72% $4,058 1.30% (0.30)%
6-month
2000
financial
highlights
(unaudited)
1999 $10.34 (0.07) 7.80 -- (0.90) $17.17 80.04% $1,839 1.30% (0.56)%
1998(2) $10.00 -- 0.35 (0.01) -- $10.34 3.50% $ 966 1.30%** 0.02%**
</TABLE>
<TABLE>
<CAPTION>
Ratio of Net
Ratio of Investment
Expenses Income (Loss)
to Average to Average
Net Assets Net Assets Portfolio
(Excluding (Excluding Turnover
Waivers) Waivers) Rate
---------------------------------------------------
<S> <C> <C> <C>
TIP Target Select Equity Fund*
Interim 5.89% (4.89)% 525.82%
6-month
2000
financial
highlights
(unaudited)
1999 10.19% (9.45)% 1,279.40%
1998(2) 18.76%** (17.44)%** 803.02%
</TABLE>
* The Fund was managed by Turner Investment Partners, Inc. under a manager of
managers approach and used several sub-advisers. Turner managed
substantially all the assets of the Fund under this approach.
** Annualized
(1) Returns are for the period indicated and have not been annualized.
(2) Commenced operations on January 1, 1998.
Amounts designated as "--" are either $0 or have been rounded to $0.
Page 22 of 24
<PAGE>
ALPHA SELECT FUNDS
Investment Adviser
Concentrated Capital Management
1150 First Avenue
Park View Tower, Suite 600
King of Prussia, PA 19406-2816
Investment Sub-Advisers
Evergreen Investment Management Company
200 Berkeley Street
Boston, MA 02116
Mercury Advisors
800 Scudders Mill Road
Plainsboro, NJ 08536
Turner Investment Partners, Inc.
1235 Westlakes Drive, Suite 350
Berwyn, PA 19312
Distributor
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, Pennsylvania 19456
Legal Counsel
Morgan, Lewis & Bockius LLP
1701 Market Street
Philadelphia, PA 19103
More information about the Fund is available without charge through the
following:
Statement of Additional Information (SAI)
The SAI dated ____, 2000, includes detailed information about the Fund. The SAI
is on file with the SEC and is incorporated by reference into this prospectus.
This means that the SAI, for legal purposes, is a part of this prospectus.
Page 23 of 24
<PAGE>
Annual and Semi-Annual Reports
These reports contain the Fund's holdings and contain information from the
Fund's managers about strategies, and recent market conditions and trends and
their impact on Fund performance. The reports also contain detailed financial
information about the Fund.
To Obtain an SAI, Annual or Semi-Annual Report, or More Information, Including
Responses to Shareholder Inquiries:
By Telephone: Call 1-888-847-7654
By Mail: Write to Alpha Select Funds
P.O. Box 219805
Kansas City, Missouri 64121-6805
From the SEC: You can also obtain the SAI or the Annual and Semi-Annual reports
of the TIP Funds, TIP Target Select Equity Fund, the Fund's predecessor as well
as other information about Alpha Select Funds, from the EDGAR Database on the
SEC's website ("http://www.sec.gov"). You may review and copy documents at the
SEC Public Reference Room in Washington, DC (for information on the operation of
the Public Reference Room, call 1-202-942-8090). You may request documents by
mail from the SEC, upon payment of a duplicating fee, by writing to: Securities
and Exchange Commission, Public Reference Section, Washington, DC 20549-0102.
You may also obtain this information, upon payment of a duplicating fee, by
e-mailing the SEC at the following address: [email protected].
Alpha Select Funds' Investment Company Act registration number is 811-8104.
Page 24 of 24
