<PAGE> 1
SUMMIT INVESTMENT TRUST
Supplement dated April 27, 1999
to Prospectus dated September 30, 1998
Capitalized terms not defined in this Supplement have the same meaning assigned
to them in the Prospectus.
1. The "Fees and Expenses" table and "Expense Example" in the section
entitled "RISK/RETURN SUMMARY AND FUND EXPENSES" on pages 5 and 6 for the
High Yield Fund are deleted in their entirety and replaced as follows:
As an investor in the High
Yield Fund, you may pay
the following fees and
expenses.
Shareholder transaction
fees are paid from your
account. Annual Fund
operating expenses are
paid out of Fund assets,
and are reflected in the
share price.
CONTINGENT DEFERRED
SALES CHARGE
Class B Shares impose a
back end sales charge
(load) if you sell your
shares before a certain
period of time has
elapsed. This is called
a Contingent Deferred
Sales Charge (or
"CDSC").
FEES AND EXPENSES - HIGH YIELD FUND
<TABLE>
<S> <C> <C>
SHAREHOLDER FEES
(FEES PAID
DIRECTLY FROM
YOUR INVESTMENT) A SHARES B SHARES
Maximum sales charge (load) imposed on
Purchases (as a percentage of offering
prices) 4.50%(1) None
Maximum deferred sales charge (load)
(as a percentage of the lesser of
price at purchase or net asset value
at redemption) None(2) 5.00%(3)
ANNUAL FUND
OPERATING EXPENSES
(EXPENSES THAT ARE
DEDUCTED FROM
FUND ASSETS)(4) A SHARES B SHARES
Management fees(5) 0.72% 0.72%
Distribution and service (12b-1)
fees(6) 0.25% 1.00%(7)
Other expenses 0.63% 0.63%
Total annual fund operating expenses 1.60% 2.35%
</TABLE>
(1) Reduced on investments of $100,000 or more and subject to certain
discounts and exceptions. See "Distribution Arrangements-Calculation of Sales
Charges."
(2) A deferred sales charge may be applicable on investments of $500,000 or
more. See "Distribution Arrangements-Calculation of Sales Charges."
(3) Contingent deferred sales charge declines each year over 6 years, as
follows: 5%, 4%, 3%, 3%, 2%, 1%, and 0%.
(4) The expense information in the table has been restated to reflect current
fees based on a contractual commitment by the Adviser to waive its advisory
fee and/or to reimburse the Fund, if necessary, if the advisory fee and
expenses would cause the Total Annual Fund Operating Expenses to exceed 1.60%
for the Class A shares and 2.35% for the Class B shares.
(5) This fee may vary between 0.35% and 1.15% depending on the Fund's
investment performance and the operations of the fee waiver/expense
reimbursement commitment. For the fiscal year ended May 31, 1998, the fee
waiver/expense reimbursement by the Adviser described in footnote 4 was
voluntary and the fee was 0.91% before the voluntary fee waiver described in
footnote 4 and was 0.55% after such voluntary fee waiver.
(6) Long-term shareholders may pay indirectly more than the equivalent of the
maximum front-end sales charge permitted by National Association of
Securities Dealers, Inc. regulation due to the recurring nature of
Distribution and Service (12b-1) Fees.
(7) Includes a fee of 0.75% for distribution related expenses and 0.25% for
shareholder services expenses.
<PAGE> 2
Use the table at right to
compare fees and expenses
with those of other Funds. It
illustrates the amount of
fees and expenses you would
pay, assuming the following:
- $10,000 investment
- 5% annual return
- redemption at the end of
each period
- no changes in the Fund's
operating expenses
Because this example is
hypothetical and for
comparison purposes, your
actual costs may be
different.
<TABLE>
EXPENSE EXAMPLE - HIGH YIELD FUND
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
CLASS A SHARES $605 $ 932 $1,282 $2,265
CLASS B SHARES
Assuming redemption $738 $1,033 $1,455 $2,405
Assuming no
redemption $238 $ 733 $1,255 $2,405
</TABLE>
The Example does not reflect sales charges
(loads) on reinvested dividends and other
distributions. If these sales charges
(loads) were included, your costs would be
higher.
<PAGE> 3
2. The "Fees and Expenses" table and "Expense Example" in the section
entitled "RISK/RETURN SUMMARY AND FUND EXPENSES" on pages 8 and 9 for the
Emerging Markets Fund are deleted in their entirety and replaced as
follows:
As an investor in the
Emerging Markets Fund, you
may pay the following fees
and expenses.
Shareholder transaction
fees are paid from your
account. Annual Fund
operating expenses are
paid out of Fund assets,
and are reflected in the
share price.
CONTINGENT DEFERRED
SALES CHARGE
Class B Shares impose a
back end sales charge
(load) if you sell your
shares before a certain
period of time has
elapsed. This is called
a Contingent Deferred
Sales Charge (or
"CDSC").
FEES AND EXPENSES - EMERGING MARKETS
FUND
<TABLE>
<S> <C> <C>
SHAREHOLDER FEES
(FEES PAID
DIRECTLY FROM
YOUR INVESTMENT) A SHARES B SHARES
Maximum sales charge (load) imposed
on purchases (as a percentage of
offering prices) 4.50%(1) None
Maximum deferred sales charge (load)
(as a percentage of the lesser of
price at purchase or net asset value
at redemption) None(2) 5.00%(3)
ANNUAL FUND
OPERATING EXPENSES
(EXPENSES THAT ARE
DEDUCTED FROM
FUND ASSETS)(4) A SHARES B SHARES
Management fee(5) 0.55% 0.55%
Distribution and service (12b-1)
fees(6) 0.25% 1.00%(7)
Other expenses 1.20% 1.20%
Total annual fund operating expenses 2.00% 2.75%
</TABLE>
(1) Reduced on investments of $100,000 or more subject to certain discounts
and exceptions. See "Distribution Arrangements-Calculation of Sales Charges."
(2) A deferred sales charge may be applicable on investments of $500,000 or
more. See "Distribution Arrangements-Calculation of Sales Charges."
(3) Contingent deferred sales charge declines each year over 6 years, as
follows: 5%, 4%, 3%, 3%, 2%, 1% and 0%.
(4) The expense information in the table has been restated to reflect current
fees based on a contractual commitment by the Adviser to waive its advisory
fee and/or to reimburse the Emerging Markets Fund, if necessary, if the
advisory fee and expenses would cause the Total Annual Fund Operating
Expenses to exceed 2.00% for the Class A shares and 2.75% for the Class B
shares.
(5) The Adviser has made a contractual commitment to waive a portion or all
of its advisory fee of 0.75% as described in footnote 4 above. For the fiscal
year ended May 31, 1998, the fee waiver/expense reimbursement by the Adviser
described in footnote 4 was voluntary and the advisory fee after the fee
waiver was .54%.
(6) Long-term shareholders may pay indirectly more than the equivalent of the
maximum front-end sales charge permitted by National Association of
Securities Dealers, Inc. regulation due to the recurring nature of
Distribution and Service (12b-1) Fees.
(7) Includes a fee of 0.75% for distribution related expenses and 0.25% for
shareholder services expenses.
<PAGE> 4
Use the table at right to
compare fees and expenses
with those of other Funds. It
illustrates the amount of
fees and expenses you would
pay, assuming the following:
- $10,000 investment
- 5% annual return
- redemption at the end of
each period
- no changes in the Fund's
operating expenses
Because this example is
hypothetical and for
comparison purposes, your
actual costs may be
different.
<TABLE>
EXPENSE EXAMPLE - EMERGING MARKETS FUND
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
CLASS A SHARES $644 $1,049 $1,479 $2,672
CLASS B SHARES
Assuming redemption $778 $1,153 $1,654 $2,808
Assuming no
redemption $278 $ 853 $1,454 $2,808
</TABLE>
The Example does not reflect sales charges
(loads) on reinvested dividends and other
distributions. If these sales charges
(loads) were included, your costs would be
higher.
<PAGE> 5
3. The last paragraph on page 31 relating to the Advisory Fee for the High
Yield Fund is deleted in its entirety and replaced as follows:
For the fiscal year ended May 31, 1998, the Adviser received an investment
advisory fee of $262,141 (0.55%), following certain voluntary waivers.
Absent the voluntary waivers undertaken by the Adviser, the Adviser would
have been entitled to receive an advisory fee of $434,032 (0.90%), based on
the Fund's performance for the fiscal year ended May 31, 1998, pursuant to
the performance schedule above. Under the provisions of the Advisory
Agreement, the Adviser is entitled to receive one-twelfth of the
performance related portion of the fee computed for the preceding
twelve-month period. The Adviser has made a contractual commitment as of
March 31, 1999 to waive all or a portion of its advisory fee or to
reimburse expenses of the Fund so as to limit the Fund's total annual fund
operating expenses to 1.60% for the Class A shares and 2.35% for the Class
B shares of the Fund.
4. The second paragraph on page 32 which relates to the Advisory Fee for the
Emerging Markets Fund is deleted in its entirety and replaced as follows:
EMERGING MARKETS FUND -- As full compensation for services furnished to the
Emerging Markets Fund and expenses of the Fund assumed by the Adviser, the
Adviser is entitled to receive from the Fund an advisory fee equal to 0.75
of 1% of the Fund's average daily net assets. The advisory fee is paid
monthly. However, the Adviser has made a contractual commitment as of March
31, 1999 to waive all or a portion of its advisory fee, or to reimburse
expenses of the Fund so as to limit the Fund's total annual fund operating
expenses to 2.00% for the Class A shares and 2.75% for the Class B shares
of the Fund. For the fiscal year ended May 31, 1998, the Adviser received
an investment advisory fee of $61,669 (0.60%), following certain voluntary
waivers. Absent the voluntary waivers undertaken by the Adviser, the
Adviser would have been entitled to receive an advisory fee of $77,180
(0.75%).
<PAGE> 6
SUMMIT INVESTMENT TRUST
SUPPLEMENT DATED APRIL 27, 1999
TO STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 30, 1998
Capitalized terms not defined in this Supplement have the same meaning assigned
to them in the Statement of Additional Information.
1. Under Management of the Trust on page 35, replace Frederick Moss, who
resigned effective March 31, 1999 with T. Ashley Cooper, who was elected on
March 31, 1999 by the remaining trustees to fill the vacancy created by the
resignation of Mr. Moss.
<TABLE>
<CAPTION>
- ----------------------------- ----------------------------- --------------------------------------------------------
NAME, ADDRESS AND AGE POSITION(S) HELD WITH PRINCIPLE OCCUPATION(S) DURING THE PAST FIVE YEARS
REGISTRANT
- ----------------------------- ----------------------------- --------------------------------------------------------
<S> <C> <C>
T. Ashley Cooper Trustee Financial Adviser - Seaconn (ferry operation company)
70 Oak Ridge Avenue and President - Custom Home Builder (residential home
Summit, NJ 07901 development company) (August 1998 - present); Senior
age 38 Managing Director - NationsBank Montgomery Securities
(broker-dealer) (1997 to August 1998); Senior Vice
President - Lehman Brothers Inc. (broker-dealer)
(1995-1996); and Vice President - Salomon Brothers
Inc. (broker-dealer) (1982-1994).
- ----------------------------- ----------------------------- --------------------------------------------------------
</TABLE>
2. The last paragraph on page 40 and ending on page 41 relating to the
Advisory Fee for the High Yield Fund is deleted in its entirety and
replaced as follows:
The advisory fees payable to the Adviser are described in the prospectus. As
described in the High Yield Fund's prospectus, as full compensation for services
furnished to the High Yield Fund and expenses of the High Yield Fund assumed by
the Adviser, the High Yield Fund pays the Adviser an advisory fee which
increases or decreases based on the total return investment performance for the
High Yield Fund for the prior twelve-month period relative to the percentage
change in the Salomon Brothers High Yield Market Index (the "Index") for the
same period. A general description of the Index is set forth in the prospectus.
In the event the Index is no longer published or available or becomes an
inappropriate measure of the High Yield Fund's performance, the Trustees will
meet to approve another appropriate index or will negotiate a fixed advisory fee
with the Adviser. The Adviser has made a contractual commitment as of March 31,
1999 to waive all or a portion of its advisory fee or reimburse expenses of the
High Yield Fund so as to limit the Fund's total annual fund operating expenses
to 1.60% for the Class A shares and 2.35% for the Class B shares of the High
Yield Fund.
<PAGE> 7
3. The second full paragraph on page 41 relating to the Advisory Fee for the
Emerging Markets Fund is deleted in its entirety and replaced as follows:
As described in the Emerging Markets Fund's prospectus, as full compensation for
services furnished to the Emerging Markets Fund and expenses of the Emerging
Markets Fund assumed by the Adviser, the Emerging Markets Fund pays the Adviser
an advisory fee equal to .75 of 1% of the Emerging Markets Fund's average daily
net assets. The Adviser has made a contractual commitment as of March 31, 1999
to waive all or a portion of its advisory fee or to reimburse expenses of the
Emerging Markets Fund so as to limit the Fund's total annual fund operating
expenses to 2.00% for the Class A shares and 2.75% for the Class B shares of the
Emerging Markets Fund. The Emerging Markets Fund commences operations on
December 31, 1997 and paid the adviser for investment advisory services, $61,669
for the period that began on December 31, 1997 and ended on May 31, 1998. For
the same period, the Adviser waived investment advisory fees in the amount of
$15,511.
4. The section "The Sub-Adviser" and the first two sentences under the section
"The Sub-Advisory Agreement" on page 41 are deleted in their entirety and
replaced as follows:
THE SUB ADVISOR
Summit Investment Partners, LLC ("Summit Partners" or the "Sub-Adviser"), an
Ohio limited liability company and Carillon Advisers, Inc., ("Carillon") an Ohio
corporation with offices at 1876 Waycross Road, Cincinnati, Ohio 45246, are
registered as investment advisers under the Advisers Act. Both the Sub-Adviser
and Carillon are wholly-owned subsidiaries of Union Central Life. Carillon and
its affiliates currently act as an investment adviser to Carillon Group of
Mutual Funds, which consist of the Carillon Fund, Inc and the Carillon
Investment Trust. Under a restructuring of Carillon that occurred approximately
October, 1998, assigned its business with respect to the High Yield Fund and
Emerging Markets Fund and certain other business to Summit Partners. For further
information about the restructuring, see "SUB-ADVISER" in the Prospectus of the
Trust.
THE SUB-ADVISORY AGREEMENT
Summit Partners serves as sub-adviser of the Trust pursuant to an Investment
Sub-Advisory Agreement with the Adviser dated September 18, 1996, as amended
(the "Sub-Advisory Agreement"). Under the Sub-Advisory Agreement, Summit
Partners provides, subject to the Adviser's direction, a portion of the
investment advisory services for which the Adviser is responsible pursuant to
each Advisory Agreement relating to the Funds.
<PAGE> 8
5. The third paragraph on page 42 relating to the Sub-Advisory Fees for the
High Yield Fund and the Emerging Markets Bond Fund is deleted in its
entirety and replaced as follows:
Effective as of January 1, 1999, under the Sub-Advisory Agreement, the
Sub-Adviser receives from FSCM an annual fee in the amount of $125,000 per fund
for services rendered (rather than $150,000 per fund as previously in effect).
If the Sub-Adviser renders services to the Adviser under the Sub-Advisory
Agreement for a period of less than twelve months in length, the Sub-Adviser is
entitled to a pro-rata portion of such fee, or such other fee as shall be agreed
to by the Adviser and the Sub-Adviser, not to exceed the equivalent of the
pro-rata portion of such fee. In the event that the amount payable as the
Sub-Adviser's fees exceeds the amount of advisory fees paid to the adviser
pursuant to the advisory Agreement, the difference will be shared equally by the
Adviser's general partners, Freeman and Summit Partners, or paid by FSCM.
6. On page 4, the following language related to securities purchased on a
"when issued" basis should be added under High Yield/High Risk securities
(which begins on page 3):
Each of the Funds may purchase securities on a "when-issued" basis.
When-issued securities are purchased for delivery beyond the normal settlement
date at a stated price and yield, and thereby involve risk that the yield
obtained in the transaction will be less than those available in the market when
delivery takes place. The Funds will generally not pay for such securities or
start earning interest on them until they are received. When a Fund agrees to
purchase securities on a "when-issued" basis, the Trust's custodian will set
aside cash or liquid securities equal to the amount of the commitment in a
separate account. Securities purchased on a "when-issued" basis are recorded as
an asset and are subject to changes in value based upon changes in the general
level of interest rates. Each of the Funds expects that commitments to purchase
"when-issued" securities will not exceed 25% of the value of its total assets
under normal market conditions, and that a commitment to purchase "when-issued"
securities will not exceed 60 days. The Funds do not intend to purchase
"when-issued" securities for speculative purposes, but only for the purpose of
acquiring portfolio securities.
