<PAGE> 1
MAGNA FUNDS
Supplement dated June 6, 1997 to
Prospectus dated January 2, 1997
Capitalized terms used in this Supplement and not defined have the
meaning assigned to them in the Prospectus.
The Prospectus is hereby amended as follows:
1. The address for the funds has been changed to P.O. Box 182754,
Columbus, OH 43218-2784.
2. The first sentence of the third paragraph on page 1 is hereby
amended to read as follows:
Shares are offered to the public through BISYS Fund Services
("BISYS"), the Trust's distributor.
3. The second paragraph under "Fund Management and Expenses" on page
11 is hereby amended to read as follows:
Under an agreement with the Trust, BISYS Fund Services ("BISYS")
provides management and administrative services to the Funds, and,
in general, supervises the operations of the Trust. The Trust pays
BISYS a fee for its services to each Fund at the annual rate of
0.20% of the Trust's average net assets. Each Fund has adopted a
plan under Rule 12b-1 under the Investment Company Act of 1940
providing for payment to BISYS of a service fee at the annual rate
of 0.25% of the Fund's average daily nets assets. BISYS has
agreed to waive this fee through August 31, 1997. If the fee were
not being waived, BISYS would use the fee to pay the dealer
responsible for a shareholder's account a service fee at the annual
rate of 0.20% of the average daily net assets of such account.
3. The last sentence in the second paragraph under "Portfolio
Transactions" on page 12 has been deleted.
4. The third paragraph under "How to Purchase Shares" on page 13 is
hereby deleted.
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5. The fourth paragraph under "How to Purchase Shares" on page 13 is
hereby amended to read as follows:
You may make an initial purchase of shares of any Fund by
submitting a completed application form and payment to:
Magna Funds
P.O Box 182754
Columbus, OH 43218-2754
6. The first sentence of the sixth paragraph under "How to Purchase
Shares" on page 13 is hereby amended as follows:
Certificates will not be issued for shares.
7. The seventh paragraph under "How to Purchase Shares" on page 13 is
hereby amended as follows:
Upon acceptance of your order, BISYS Fund Services ("BISYS"), the
shareholder servicing agent will open an account for you, apply
the payment to the purchase of full and fractional Fund shares and
will mail a statement of the account confirming the transaction.
8. The ninth paragraph under "How to Purchase Shares" on page 13 is
hereby amended as follows:
Subsequent investments can also be made by federal funds wire. To
purchase shares by wire contact the Trust at (800) 219-4182 to
obtain instructions regarding the bank account number into which
the funds should be wired and other pertinent information.
9. The first paragraph under "Purchases by Certain Investors" on page
14 is hereby amended as follows:
No sales charge applies to purchases by Magna Trust Company for the
account of its customers; officers, trustees, directors, employees
and retired employees of the Trust, Magna Trust Company and its
affiliates, and BISYS Fund Services and its affiliates (and
spouses and children of the foregoing).
10. The third sentence of the fifth paragraph under "How to Redeem
Shares" on page 15 is hereby deleted.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE
PROSPECTUS FOR FUTURE REFERENCE
MG1P060697
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MAGNA FUNDS
Supplement dated June 6, 1997 to
Statement of Additional Information dated January 2, 1997
Capitalized terms used in this Supplement and not defined have the
meaning assigned to them in the Statement of Additional Information.
The Statement of Additional Information is hereby amended as follows:
1. The address for the funds has been changed to P.O. Box 182754,
Columbus, OH 43218-2784.
2. The following individuals listed on Page 14 are no longer officers
of the Trust:
Barry Hartstone President and Treasurer
Robert A. Bonelli Executive Vice President and Secretary
Thomas W. Streeter Director of Compliance, Ernst & Company
Steven J. Paraggio Vice President
The following individuals have been elected to serve as officers of
the Trust in the capacity set forth opposite their name:
Walter B. Grimm President and Secretary
William J. Tomko Vice President
James L. Smith Vice President
Alaina Metz Vice President
Tom Line Treasurer
3. The following paragraph on page 15 has been deleted:
Except as indicated above, the address of officers of the Trust
affiliated with Ernst is One Battery Plaza, New York,
New York 10004.
4. The paragraph under "Investment Advisory and Other Services -
Administrator" on page 18 is hereby amended as follows:
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BISYS Fund Services ("BISYS"), under an agreement with the Trust,
provides management and administrative services to the Funds, and,
in general, supervises the operations of the Trust. BISYS does not
provide investment advisory services. As part of its duties, BISYS
provides office space, equipment and clerical personnel for
managing and administering the affairs of the Trust. BISYS
supervises the provision of custodial, auditing, valuation,
bookkeeping, legal, and dividend disbursing services and provides
other management and administrative services. The Trust pays BISYS
a fee for its services to each Fund at the annual rate of 0.20% of
the Trust's average net assets.
5. The paragraph under "INVESTMENT ADVISORY AND OTHER SERVICES -
CUSTODIAL ARRANGEMENTS" on page 19 is hereby amended to read as
follows:
Fifth Third Bank, Fifth Third Center, Cincinnati, Ohio 45263 became
the Trust's custodian on June 2, 1997. As such, Fifth Third Bank
holds in safekeeping securities and cash belonging to the Funds
and, in such capacity, is the registered owner of securities held
in book-entry form belonging to the Funds. Upon instruction, Fifth
Third Bank receives and delivers cash and securities of the Funds
in connection with Fund transactions and collects all dividends and
other distributions made with respect to Fund portfolio securities.
Pursuant to an agreement with the Trust, the Custodian receives
compensation from each Fund for such services based upon a
percentage of each Fund's average daily net assets.
6. The last paragraph on page 20 is hereby deleted in its entirety.
7. Paragraph 1, page 25 under "SHAREHOLDER ACCOUNTS - OPEN ACCOUNTS"
is hereby amended as follows:
A shareholder's investment in any Fund is automatically credited to
an open account maintained for the shareholder by BISYS Fund
Services, Inc. ("BISYS"), the shareholder servicing agent for the
Trust.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT WITH THE
STATEMENT OF ADDITIONAL INFORMATION FOR FUTURE REFERENCE
MG1S060697
