SUPPLEMENT TO PROSPECTUS*
April 1, 1997
The following information supplements the information concerning the
Intermediate Fixed Income Portfolio found on page 2 of the prospectus:
For the fiscal year beginning on April 1, 1997, Rainier Investment Management,
Inc. has voluntarily undertaken to limit the Total Annual Portfolio Operating
Expenses of the Intermediate Fixed Income Portfolio to 0.55% of the Portfolio's
average net assets (the voluntary limit previously was 0.95%). The following
table restates the Total Annual Portfolio Operating Expenses for the Portfolio
last fiscal year ended March 31, 1996 to reflect these changes.
Intermediate
Fixed Income
Portfolio
--------------
Total Annual Portfolio Operating Expenses
(as a percentage of average net assets)
Management fees(1) 0.45%
12b-1 expenses(2) 0.10%
Other expenses net of waivers
and expense reimbursements(3) 0.00%
--------------
Total operating expenses net of
waivers and expense reimbursements 0.55%
(1),(3) The Adviser has agreed to waive a portion of its contractual 0.50%
advisory fee and has further agreed to reimburse the Portfolio for certain other
ordinary operating expenses to the extent necessary to limit to 0.55% the
Portfolio's ratio of expenses to average net assets. Percentages shown reflect
the Management Fees and Other Expenses that would have been incurred by the
Portfolio had such voluntary undertaking been in effect during the fiscal year
ended March 31, 1996. The actual management fee and Other Expenses(after expense
reimbursements) paid by the Portfolio during such fiscal year were 0.50% and
0.20% of the Portfolio's average net assets, respectively and the actual ratio
of Total Operating Expenses( after expense reimbursements) to average net assets
for the Portfolio for the period was 0.95%.
(2) The maximum annual expenditure with respect to the Portfolio under the
Fund's 12b-1 Plan has been reduced to 0.10% of the Portfolio's average net
assets. The percentage shown reflects 12b-1 expenses that would have been
incurred during the fiscal year ended March 31, 1996, had such reduction been in
effect during that year. The actual 12b-1 expense incurred by the Portfolio
during such year was 0.25% of the Portfolio's average net assets.
EXAMPLE
The table below illustrates the net transaction and operating expenses that
would have been incurred by an investment in the Intermediate Fixed Income
Portfolio over different time periods shown, assuming that the voluntary
undertaking and reduction in 12b-1 fees noted above had been in effect during
such periods. Like the corresponding table that appears on page 2 of the
prospectus, the table below assumes a $1,000 investment, a 5% annual return, and
redemption at the end of one, three, five and ten years. The Portfolio charges
no redemption fees.
Intermediate
Fixed Income
Portfolio
--------------
One year $6
Three years $18
Five years $31
Ten years $69
The example shown above assumes the Adviser will limit the Total Annual
Operating Expenses to .55%.. The example should not be considered to be a
representation of past or future expenses and actual expenses may be greater or
less than those shown. In addition, federal regulations require the example to
assume a 5% annual return, but the Portfolio's actual returns may be higher or
lower.
The Intermediate Fixed Income Portfolio will notify its shareholders in writing
at least 30 days prior to any adjustments to the voluntary limit on its Total
Portfolio Annual Operating Expenses.
*Prospectus dated July 29, 1996.
