<PAGE> 1
INVESTMENT ADVISER
Union Planters Bank, National Association
One South Church Street
Suite 500
Belleville, Illinois 62220
ADMINISTRATOR & DISTRIBUTOR
BISYS Fund Services, L.P.
3435 Stelzer Road
Columbus, Ohio 43219
TRANSFER AND DIVIDEND
PAYING AGENT
BISYS Fund Services, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
CUSTODIAN
Union Planters Bank, National Association
One South Church Street
Suite 500
Belleville, Illinois 62220
INDEPENDENT ACCOUNTANTS
KPMG LLP
Two Nationwide Plaza
Suite 1600
Columbus, Ohio 43215
LEGAL COUNSEL
Ropes & Gray
One International Place
Boston, Massachusetts 02110
QUESTIONS?
Call 1-800-219-4182 or your investment representative.
[Leader Mutual Funds Logo]
LEADER Growth &
Income Fund
LEADER Balanced Fund
LEADER Tax-Exempt
Bond Fund
LEADER Intermediate
Government Bond Fund
LEADER Short Term
Bond Fund
LEADER Tax-Exempt
Money Market Fund
LEADER Money
Market Fund
LEADER Treasury
Money Market Fund
Institutional Shares
---------------
PROSPECTUS
JANUARY 1, 2001
---------------
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THE
SHARES DESCRIBED IN THIS PROSPECTUS OR DETERMINED WHETHER THIS PROSPECTUS
IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
<PAGE> 2
LEADER MUTUAL FUNDS TABLE OF CONTENTS
<TABLE>
<S> <C> <C> <C>
RISK/RETURN SUMMARY AND FUND EXPENSES
[ICON]
Carefully review this 1 LEADER Growth & Income Fund
important section, which 4 LEADER Balanced Fund
summarizes each Fund's 7 LEADER Tax-Exempt Bond Fund
objectives, strategies, 9 LEADER Intermediate Government Bond Fund
investments, risks, past 13 LEADER Short Term Bond Fund
performance, and fees. 15 LEADER Tax-Exempt Money Market Fund
17 LEADER Money Market Fund
19 LEADER Treasury Money Market Fund
21 Fees and Expenses
23 Investing for Defensive Purposes
23 Additional Information Regarding Fund Investments
and Policies
FUND MANAGEMENT
[ICON]
Review this section for 25 Investment Adviser
details on the people and 25 Portfolio Managers
organizations who oversee 26 Distributor and Administrator
the Funds and their
investments.
SHAREHOLDER INFORMATION
[ICON]
Consult this section to 27 Pricing of Fund Shares
obtain details on how shares 28 Purchasing and Selling Your Shares
are valued, how to purchase, 30 General Policies on Selling Shares
sell and exchange shares, 31 Distribution Arrangements
related charges and payments 31 Exchanging Your Shares
of dividends. 32 Dividends and Distributions
32 Taxation
FINANCIAL HIGHLIGHTS
[ICON]
Review this section for 34 Financial Highlights
details on the selected
financial statements of the
Funds.
</TABLE>
<PAGE> 3
[ICON]
LEADER GROWTH &
RISK/RETURN SUMMARY AND FUND EXPENSES INCOME FUND
<TABLE>
<S> <C>
INVESTMENT OBJECTIVES Long-term growth of capital, current income and growth of
income.
PRINCIPAL The LEADER Growth & Income Fund (formerly the "Magna Growth
INVESTMENT STRATEGIES & Income Fund") invests primarily in common stocks that
Union Planters Bank, National Association ("the Adviser")
believes have potential primarily for capital growth and
secondarily for income. The Fund intends to hold a
combination of growth stocks and value stocks. By investing
in a blend of stocks that demonstrate strong long-term
earnings potential and undervalued stocks, the Fund seeks to
achieve strong returns with less volatility. A portion of
the Fund's assets may also be invested in preferred stocks,
bonds (primarily investment grade) convertible into common
stock and securities of foreign issuers traded in U.S.
securities markets. The Fund's investment in foreign issuers
will be primarily through American Depositary Receipts
("ADRs"). The Fund expects to earn current income mainly
from dividends paid on common and preferred stocks and from
interest on convertible bonds.
The Adviser utilizes both "top-down" and "bottom-up"
approaches in constructing the Fund's portfolio. This means
the Adviser looks at the condition of the overall economy
and industry segments in addition to data on individual
companies. The Adviser selects stocks with the intent of
realizing long-term capital appreciation, not for quick
turnover. The Adviser exercises patience and discipline in
making decisions to sell or continue to hold individual
stocks over time.
PRINCIPAL Two principal risks of investing in stocks are market risk
INVESTMENT RISKS and selection risk. Market risk means that the stock market
in general has ups and downs, which may affect the
performance of the individual stocks held by the Fund, and
thus the performance of the Fund as a whole. Selection risk
means that the particular stocks that are selected by the
Adviser for the Fund may underperform the market or those
stocks selected by other funds with similar objectives.
The Fund will invest principally in common stocks, which
have historically presented greater potential for capital
appreciation than fixed income securities, but do not
provide the same protection of capital or assurance of
income and therefore may involve greater risk of loss. The
Fund may invest a significant portion of its assets in
"growth securities" and/or "value securities." Growth
securities typically trade at higher multiples of current
earnings than other stocks and are often more volatile than
other types of securities because their market prices tend
to place greater emphasis on future earnings expectations.
Value securities bear the risk that the companies may not
overcome the adverse business or other developments that
caused the securities to be out of favor or that the market
does not recognize the value of the company, such that the
price of its securities declines or does not approach the
value the Adviser anticipates.
</TABLE>
1
<PAGE> 4
LEADER GROWTH &
RISK/RETURN SUMMARY AND FUND EXPENSES INCOME FUND
<TABLE>
<S> <C>
The Fund's investments in foreign issuers (which will be
primarily through ADRs) carry potential risks that are in
addition to those associated with domestic investments. Such
risks may include, but are not limited to: (1) currency
exchange rate fluctuations, (2) political and financial
instability, (3) less liquidity and greater volatility of
foreign investments, (4) the lack of uniform accounting,
auditing and financial reporting standards, and (5) less
government regulation and supervision of foreign stock
exchanges, brokers and listed companies.
Investing in the Fund involves risks common to any
investment in securities. By itself, no Fund constitutes a
balanced investment program. There is no guarantee that the
Fund will meet its goals. When you sell your shares in the
Fund, they may be worth more or less than you paid for them.
It is possible to lose money by investing in the Fund.
An investment in the Fund is not a bank deposit and is not
insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency.
A more complete discussion of the Fund's investments and
related risks can be found in the Statement of Additional
Information.
</TABLE>
2
<PAGE> 5
LEADER GROWTH &
RISK/RETURN SUMMARY AND FUND EXPENSES INCOME FUND
PERFORMANCE BAR CHART AND TABLE(1) -- INSTITUTIONAL SHARES(2)
PERFORMANCE INFORMATION
The bar chart and table
provide an indication of
the risks of an investment
in the Fund by showing
changes in its performance
from year to year and by
showing how the Fund's
average annual returns for
1 year, 5 years and the
period of time since
inception compare with
those of a broad-based
securities index and two
indexes of funds that the
Adviser believes have
similar investment
objectives. The Standard
and Poor's 500 Composite
Stock Price Index (the "S&P
500") in the table below is
an unmanaged, independently
maintained U.S. large
capitalization stock index.
The information provided
regarding the Lipper Growth
& Income Index and the
Lipper Large Cap Core Index
shows how the Fund's
average annual total
returns compare with the
returns of two indexes of
funds that the Adviser
believes have similar
investment objectives.
Past performance does not
indicate how the Fund will
perform in the future.
<TABLE>
<CAPTION>
PAST FIVE SINCE FUND
YEAR YEAR INCEPTION (9/1/94)
<S> <C> <C> <C>
LEADER GROWTH & INCOME FUND 18.18% 26.05% 23.29%
S&P 500(R) INDEX 21.04% 28.55% 25.97%
LIPPER GROWTH & INCOME INDEX 11.86% 20.60% 18.29%
LIPPER LARGE CAP CORE INDEX 19.35% 25.32% 22.83%
</TABLE>
(1) Both the chart and the table assume reinvestment of all dividend and capital
gain distributions.
(2) Institutional Shares are the continuation of the Fund's single class of
shares (Class A Shares) that existed prior to September 1, 2000. Class A
Shares were redesignated as "Institutional Shares" effective September 1,
2000. Unlike Class A Shares, purchases of Institutional Shares are not
subject to any sales charges. As a result, the average annual total return
figures set forth above do not reflect any reduction for such charges.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31
<TABLE>
<S> <C>
(%)
-----
1995 31.3
1996 21.88
1997 28.97
1998 30.45
1999 18.18
</TABLE>
For the period January 1, 2000 through September 30, 2000, the Fund's total
return was -1.27%.
Best quarter: Q4 1998 16.30%
Worst quarter: Q3 1998 -5.24%
AVERAGE ANNUAL TOTAL RETURNS
(for the periods ending
December 31, 1999)
3
<PAGE> 6
[ICON]
LEADER
RISK/RETURN SUMMARY AND FUND EXPENSES BALANCED FUND
<TABLE>
<S> <C>
INVESTMENT OBJECTIVES To maximize total return through a combination of growth of capital and
current income consistent with preservation of capital.
PRINCIPAL INVESTMENT The LEADER Balanced Fund invests in a combination of equity securities (such
STRATEGIES as stocks), fixed income securities (such as bonds) and money market
instruments in relative proportions that the Adviser believes will offer
attractive returns consistent with the Fund's objective. The Fund invests in
equity securities primarily for growth and income, and in fixed income
securities and money market securities primarily for income and relative
stability.
Under normal market conditions, the Fund invests at least 25% of its total
assets in fixed income securities and no more than 75% of its total assets
in equity securities. The actual percentages will vary from time to time
based on the Adviser's economic and market outlooks. In determining the
allocation of assets, the Adviser evaluates forecasts for inflation,
interest rates and corporate earnings growth. The Adviser periodically will
increase or decrease the Fund's allocation to equity securities, fixed
income securities and money market instruments based on which asset class
appears relatively more attractive than the others. For example, if the
Adviser forecasts rapid economic growth leading to increased corporate
earnings, it will generally increase the Fund's holdings of equity
securities and reduce its holdings of fixed income securities and money
market instruments.
The Fund's equity securities will consist mainly of common stocks, but may
also include preferred stocks and securities convertible into stocks, as
well as warrants to purchase such securities. In selecting equity
securities, the Adviser utilizes both "top-down" and "bottom-up" approaches.
This means the Adviser looks at the condition of the overall economy and
industry segments in addition to data on individual companies. The Adviser
selects stocks with a long-term goal of realizing capital appreciation, not
for quick turnover.
The Fund's investment in fixed income securities will consist mainly of
investment-grade bonds, but the Fund may invest in any kind of debt security
issued by private corporations or the U.S. Government (including any of its
political subdivisions, agencies, or instrumentalities). With respect to its
investment in bonds, the Fund will invest primarily in issues rated in one
of the four highest categories by a nationally recognized statistical rating
organization ("NRSRO") (for example, rated Aaa, Aa, A or Baa by Moody's
Investors Service, Inc. ("Moody's") or AAA, AA, A or BBB by Standard &
Poor's Rating Service ("Standard & Poor's")) or unrated issues deemed by the
Adviser to be of comparable quality. The Fund may also invest up to 10% of
its total assets in securities rated below investment grade.
</TABLE>
4
<PAGE> 7
LEADER
RISK/RETURN SUMMARY AND FUND EXPENSES BALANCED FUND
<TABLE>
<S> <C>
The Fund's investments in U.S. Government securities include direct
obligations of the U.S. Treasury, such as U.S. Treasury bills, notes and
bonds, as well as obligations of U.S. Government agencies, authorities or
instrumentalities such as the Federal Home Loan Banks, FNMA, GNMA, the
Federal Farm Credit Banks, the Student Loan Marketing Association, the
Federal Home Loan Mortgage Corporation or the Tennessee Valley Authority.
The Fund may also invest in corporate debt obligations, mortgage-backed
securities, asset-backed securities, collateralized mortgage obligations,
repurchase agreements, adjustable rate securities and payable-in-kind bonds.
Decisions to sell portfolio holdings are generally the result of changes in
the Adviser's forecast of interest rate trends, industries or other economic
conditions, changes in the Adviser's assessment of the financial condition
of a particular issuer, for liquidity purposes, or to rebalance the
portfolio.
</TABLE>
<TABLE>
<S> <C>
PRINCIPAL INVESTMENT RISKS Two principal risks of investing in the Fund are market risk and selection
risk. Market risk means that each of the stock and bond markets in general
has ups and downs, which may affect the performance of the individual
securities held by the Fund, and thus the performance of the Fund as a
whole. Selection risk means that the particular securities that are selected
by the Adviser for the Fund may underperform the market or those securities
selected by other funds with similar objectives.
The equity component of the Fund will invest principally in common stocks,
which have historically presented greater potential for capital appreciation
than fixed income securities, but do not provide the same level of
protection of capital or assurance of income and therefore may involve
greater risk of loss. The Fund may invest a significant portion of its
assets in "growth securities" and/or "value securities." Growth securities
typically trade at higher multiples of current earnings than other stocks
and are often more volatile than other types of securities because their
market prices tend to place greater emphasis on future earnings
expectations. Value securities bear the risk that the companies may not
overcome the adverse business or other developments that caused the
securities to be out of favor or that the market does not recognize the
value of the company, such that the price of its securities declines or does
not approach the value the Adviser anticipates.
The fixed income component of the Fund seeks to provide income and a level
of protection of capital but offers less potential for capital appreciation
than equity securities. In addition, the fixed income component of the
Fund's portfolio will be subject to the following additional risks:
</TABLE>
5
<PAGE> 8
LEADER
RISK/RETURN SUMMARY AND FUND EXPENSES BALANCED FUND
<TABLE>
<S> <C>
Interest Rate Risk: All bonds fluctuate in value as interest rates
fluctuate. Generally, as interest rates rise, the value of a Fund's bond
investments, and of its shares, will decline. If interest rates decline, the
Fund's bond investments (and its share price) will generally increase in
value. In general, the shorter the maturity of a bond, the lower the risk of
price fluctuation and the lower the return.
Credit Risk: It is possible that a bond issuer may have its credit rating
downgraded, or may not make timely interest and/or principal payments on its
bonds. The lower a bond's rating, the greater its credit risk. Nearly all
fixed income investments have exposure to some degree of credit risk. This
risk will be more pronounced to the extent the Fund invests in securities
rated below investment grade, or "junk bonds".
Income Risk: It is possible that the income derived from the Fund's fixed
income component will decline over time because of a decrease in interest
rates or other factors. Income risk is generally lower for long-term bonds
and higher for short-term bonds. Because interest rates vary, it is
impossible to predict the income or yield of the Fund for any particular
period.
Prepayment Risk: Certain investments of the Fund may be subject to the risk
that the principal amount of the underlying loan may be repaid prior to the
bond's maturity date. Such repayments are common when interest rates
decline. When such a repayment occurs, no additional interest will be paid
on the investment. Prepayment exposes a Fund to potentially lower return
upon subsequent reinvestment of the principal.
Investing in the Fund involves risks common to any investment in securities.
By itself, no Fund constitutes a balanced investment program. There is no
guarantee that the Fund will meet its goals. When you sell your shares in
the Fund, they may be worth more or less than you paid for them. It is
possible to lose money by investing in the Fund.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
A more complete discussion of the Fund's investments and related risks can
be found in the Statement of Additional Information.
No performance information is shown for the LEADER Balanced Fund because as
of the date of this Prospectus, the Fund had not completed a full calendar
year of operations.
</TABLE>
6
<PAGE> 9
[ICON]
LEADER TAX-EXEMPT
RISK/RETURN SUMMARY AND FUND EXPENSES BOND FUND
<TABLE>
<S> <C>
INVESTMENT OBJECTIVES Current income that is exempt from federal income tax consistent with
preservation of capital.
PRINCIPAL INVESTMENT The LEADER Tax-Exempt Bond Fund (formerly the "Magna Tax-Exempt Bond Fund")
STRATEGIES normally invests at least 80% of its total assets in obligations producing
income that is exempt from federal income taxation. Federally tax-exempt
obligations may include municipal bonds, notes and commercial paper issued
by states and other local governments that are exempt from federal taxes.
Securities whose interest is considered a tax preference item under the
federal alternative minimum tax will be considered taxable for purposes of
this policy. The Fund will invest at least 65% of its total assets in
"bonds," which the Adviser deems to include all debt securities for this
purpose. The Fund may invest up to 20% of its net assets in U.S. Government
securities, money market instruments or "private activity" bonds (some or
all of which may produce income subject to federal alternative minimum tax).
The Fund seeks to maintain a dollar-weighted average portfolio maturity
between five and twenty years.
The Fund will only purchase securities rated in one of the four highest
categories by an NRSRO (for example, Aaa, Aa, A or Baa by Moody's or AAA,
AA, A or BBB by Standard & Poor's) or unrated securities deemed by the
Adviser to be of comparable quality. If a security's rating is reduced below
the required minimum after the Fund has purchased it, the Fund is not
required to sell the security, but may consider doing so. However, the Fund
does not intend to hold more than 10% of its total assets in securities that
have been downgraded below investment grade (for example, below Baa by
Moody's or BBB by Standard & Poor's).
While maturity and credit quality are the most important investment factors,
the Fund also considers the following when making investment decisions:
- Current yield and yield to maturity.
- Potential for capital gain.
Decisions to sell portfolio holdings are generally the result of changes in
the Adviser's forecast of interest rate trends, industries or other economic
conditions, changes in the Adviser's assessment of the financial condition
of a particular issuer, for liquidity purposes, or to rebalance the
portfolio.
PRINCIPAL INVESTMENT RISKS The Fund invests primarily in high quality fixed income securities, which
provide income and a level of protection of capital, but do not typically
present opportunity for capital appreciation. The amount of information
available about issuers of tax-exempt debt may not be as extensive as that
which is made available by companies whose stock or debt is publicly traded.
In addition, changes in law or adverse determinations by the Internal
Revenue Service could make the income from some of the Fund's investments
taxable. Two principal risks of fixed income (bond) investing are market
risk and selection risk. Market risk means that the
</TABLE>
7
<PAGE> 10
LEADER TAX-EXEMPT
RISK/RETURN SUMMARY AND FUND EXPENSES BOND FUND
<TABLE>
<S> <C>
bond market in general has ups and downs, which may affect the performance
of any individual fixed income security. Selection risk means that the
particular bonds that are selected for the Fund may underperform the market
or other funds with similar objectives. The Fund will also be subject to the
following additional investment risks:
Interest Rate Risk: All bonds fluctuate in value as interest rates
fluctuate. Generally, as interest rates rise, the value of a Fund's bond
investments, and of its shares, will decline. If interest rates decline, the
Fund's bond investments (and its share price) will generally increase in
value. In general, the shorter the maturity of a bond, the lower the risk of
price fluctuation and the lower the return.
Credit Risk: It is possible that a bond issuer may have its credit rating
downgraded, or may not make timely interest and/or principal payments on its
bonds. The lower a bond's rating, the greater its credit risk. Nearly all
fixed income investments have exposure to some degree of credit risk.
Income Risk: It is possible that the Fund's income will decline over time
because of a decrease in interest rates or other factors. Income risk is
generally lower for long-term bonds and higher for short-term bonds. Because
interest rates vary, it is impossible to predict the income or yield of the
Fund for any particular period.
Prepayment Risk: Certain of the Fund's investments may be subject to the
risk that the principal amount of the underlying loan may be repaid prior to
the bond's maturity date. Such repayments are common when interest rates
decline. When such a repayment occurs, no additional interest will be paid
on the investment. Prepayment exposes a Fund to potentially lower return
upon subsequent reinvestment of the principal.
Investing in the Fund involves risks common to any investment in securities.
By itself, no Fund constitutes a balanced investment program. There is no
guarantee that the Fund will meet its goals. When you sell your shares in
the Fund, they may be worth more or less than you paid for them. It is
possible to lose money by investing in the Fund.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
A more complete discussion of the Fund's investments and related risks can
be found in the Statement of Additional Information.
No performance information is shown for the Leader Tax-Exempt Bond Fund
because as of the date of this Prospectus, the Fund had not completed a full
calendar year of operations.
</TABLE>
8
<PAGE> 11
[ICON]
LEADER INTERMEDIATE
RISK/RETURN SUMMARY AND FUND EXPENSES GOVERNMENT BOND FUND
<TABLE>
<S> <C>
INVESTMENT OBJECTIVES Current income consistent with preservation of capital.
PRINCIPAL INVESTMENT The LEADER Intermediate Government Bond Fund (formerly the "Magna
STRATEGIES Intermediate Government Bond Fund") invests primarily in U.S. Government
securities (those that are issued or guaranteed as to principal and/or
interest payments by the U.S. Government or its agencies or
instrumentalities) and high grade bonds and notes of non-governmental
issuers. Under normal market conditions, at least 65% of the Fund's total
assets will be invested in U.S. Government securities. The Fund will invest
at least 65% of its total assets in "bonds," which the Adviser deems to
include all debt securities for this purpose. The Fund will maintain a
dollar-weighted average portfolio maturity between three and ten years, but
may purchase individual securities with longer or shorter maturities.
By limiting the maturity of its portfolio securities the Fund seeks to
moderate principal fluctuations. In addition, the Fund's Adviser seeks to
increase total return by actively managing portfolio maturity and security
selection considering economic and market conditions.
The Fund's investments in U.S. Government securities may include direct
obligations of the U.S. Treasury, such as U.S. Treasury bills, notes and
bonds, as well as obligations of U.S. Government agencies, authorities or
instrumentalities such as the Federal Home Loan Banks, FNMA, GNMA, the
Federal Farm Credit Banks, the Student Loan Marketing Association, the
Federal Home Loan Mortgage Corporation or the Tennessee Valley Authority.
The Fund will invest primarily in issues rated in one of the four highest
categories by a NRSRO (for example, rated Aaa, Aa, A or Baa by Moody's or
AAA, AA, A or BBB by Standard & Poor's) or unrated issues deemed by the
Adviser to be of comparable quality. If a security's rating is reduced below
the required minimum after the Fund has purchased it, the Fund is not
required to sell the security, but may consider doing so. However, the Fund
does not intend to hold more than 5% of its total assets in securities rated
below investment grade (for example, below Baa or BBB).
The Fund may also invest in corporate debt obligations, mortgage-backed
securities, collateralized mortgage obligations and repurchase agreements.
While short-term interest rate bets are avoided, the Adviser constantly
monitors economic conditions and adjusts portfolio maturity, where
appropriate, to capitalize on interest rate trends. Security selection is
managed considering factors such as credit risk and relative interest rate
yields available among fixed income market sectors.
</TABLE>
9
<PAGE> 12
LEADER INTERMEDIATE
RISK/RETURN SUMMARY AND FUND EXPENSES GOVERNMENT BOND FUND
<TABLE>
<S> <C>
While maturity and credit quality are the most important investment factors,
other factors considered by the Fund when making investment decisions
include:
- Current yield and yield to maturity.
- Potential for capital gain.
Decisions to sell portfolio holdings are generally the result of changes in
the Adviser's forecast of interest rate trends, industries or other economic
conditions, changes in the Adviser's assessment of the financial condition
of a particular issuer, for liquidity purposes, or to rebalance the
portfolio.
PRINCIPAL INVESTMENT RISKS The Fund invests primarily in fixed income securities, which provide income
and a level of protection of capital, but present less potential for capital
appreciation than equity securities. Two principal risks of fixed income
(bond) investing are market risk and selection risk. Market risk means that
the bond market in general has ups and downs, which may affect the
performance of any individual fixed income security. Selection risk means
that the particular bonds that are selected for the Fund may underperform
the market or other funds with similar objectives. In addition to market
risk and selection risk, the Fund will also be subject to the following
additional investment risks:
Interest Rate Risk: All bonds fluctuate in value as interest rates
fluctuate. Generally, as interest rates rise, the value of a Fund's bond
investments, and of its shares, will decline. If interest rates decline, the
Fund's bond investments (and its share price) will generally increase in
value. In general, the shorter the maturity of a bond, the lower the risk of
price fluctuation and the lower the return.
Credit Risk: It is possible that a bond issuer may have its credit rating
downgraded, or may not make timely interest and/or principal payments on its
bonds. The lower a bond's rating, the greater its credit risk. Nearly all
fixed income investments, including U.S. Government securities, have
exposure to some degree of credit risk. U.S. Government securities may be
subject to different types and amounts of credit support, as certain U.S.
Government securities are not backed by the full faith and credit of the
U.S. Government. Corporate bonds and notes, which may constitute up to 35%
of the Fund's total assets, generally involve more credit risk than U.S.
Government securities. Mortgage-backed securities may also be exposed to
high levels of credit risk, depending upon the credit of the assets
underlying such securities, the issuer's exposure to the credit risk of its
affiliates and others, and the amount and quality of any credit enhancement
associated with the security.
</TABLE>
10
<PAGE> 13
LEADER INTERMEDIATE
RISK/RETURN SUMMARY AND FUND EXPENSES GOVERNMENT BOND FUND
<TABLE>
<S> <C>
Income Risk: It is possible that the Fund's income will decline over time
because of a decrease in interest rates or other factors. Income risk is
generally lower for portfolios holding long-term bonds and higher for
portfolios holding short-term bonds. Because interest rates vary, it is
impossible to predict the income or yield of the Fund for any particular
period.
Prepayment Risk: Many of the Fund's investments, including investments in
mortgage-backed securities, are subject to the risk that the principal
amount of the underlying loan may be repaid prior to the bond's maturity
date. Such repayments are common when interest rates decline. When such a
repayment occurs, no additional interest will be paid on the investment.
Prepayment exposes a Fund to potentially lower return upon subsequent
reinvestment of the principal.
Investing in the Fund involves risks common to any investment in securities.
By itself, no Fund constitutes a balanced investment program. There is no
guarantee that the Fund will meet its goals. When you sell your shares in
the Fund, they may be worth more or less than you paid for them. It is
possible to lose money by investing in the Fund.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
A more complete discussion of the Fund's investments and related risks can
be found in the Statement of Additional Information.
</TABLE>
11
<PAGE> 14
LEADER INTERMEDIATE
RISK/RETURN SUMMARY AND FUND EXPENSES GOVERNMENT BOND FUND
PERFORMANCE BAR CHART AND TABLE(1) -- INSTITUTIONAL SHARES(2)
PERFORMANCE INFORMATION
The bar chart and table
provide an indication of
the risks of an investment
in the Fund by showing
changes in its performance
from year to year and by
showing how the Fund's
average annual returns for
one year, five years and
the period of time since
inception compare with
those of a broad-based
securities index. The
information provided
regarding the Lipper
Intermediate Government
Bond Index shows how the
Fund's average total
returns compare with the
returns of an index of
funds with similar
investment objectives.
Past performance does not
indicate how the Fund will
perform in the future.
<TABLE>
<CAPTION>
PAST FIVE SINCE FUND
YEAR YEAR INCEPTION (9/1/94)
<S> <C> <C> <C>
LEADER INTERMEDIATE GOVERNMENT
BOND FUND -4.14% 5.87% 5.04%
LIPPER INTERMEDIATE GOVERNMENT
BOND INDEX -1.39% 6.63% 5.93%
</TABLE>
(1)Both the chart and the table assume reinvestment of all dividend and capital
gain distributions.
(2)Institutional Shares are the continuation of the Fund's single class of
shares (Class A Shares) that existed prior to September 1, 2000. Class A
Shares were redesignated as "Institutional Shares" effective September 1,
2000. Unlike Class A Shares, purchases of Institutional Shares are not
subject to any sales charges. As a result, the average annual total return
figures set forth above do not reflect any reduction for such charges.
YEAR-BY-YEAR TOTAL RETURNS AS OF 12/31
<TABLE>
<CAPTION>
<S> <C>
(%)
-----
1995 14.95
1996 3.43
1997 7.86
1998 8.19
1999 -4.14
</TABLE>
For the period January 1, 2000 through September 30, 2000, the Fund's total
return was 6.52%.
Best quarter: Q2 1995 5.19%
Worst quarter: Q2 1999 -2.12%
AVERAGE ANNUAL TOTAL RETURNS
(for the periods ending December 31, 1999)
12
<PAGE> 15
[ICON]
LEADER SHORT
RISK/RETURN SUMMARY AND FUND EXPENSES TERM BOND FUND
<TABLE>
<S> <C>
INVESTMENT OBJECTIVES To provide a high level of current income consistent with preservation of
capital.
PRINCIPAL INVESTMENT The LEADER Short Term Bond Fund invests primarily in investment-grade bonds
STRATEGIES (for example, those rated at least Baa by Moody's or BBB by Standard &
Poor's, or determined to be of comparable quality by the Adviser). The types
of securities that the Fund may purchase include bonds of U.S. corporate and
governmental issuers, U.S. dollar-denominated bonds of foreign issuers, and
mortgage-backed and other asset-backed securities. The Fund will normally
maintain a dollar-weighted average portfolio maturity of three years or
less, but may purchase individual securities with longer maturities.
By limiting the maturity of its portfolio securities the Fund seeks to
moderate principal fluctuations. In addition, the Fund's Adviser seeks to
increase total return by actively managing portfolio maturity and security
selection considering economic and market conditions.
In addition to a wide range of corporate and government debt obligations,
the Fund may also invest in collateralized mortgage obligations, repurchase
agreements, adjustable rate securities and payable in kind bonds. The Fund
may also invest in securities rated below investment grade (for example,
below Baa or BBB), but does not expect such investments to exceed 10% of the
Fund's net assets.
While maturity and credit quality are the most important investment factors,
other factors considered by the Adviser when making investment decisions
include:
-Current yield and yield to maturity.
-Potential for capital gain.
Decisions to sell portfolio holdings are generally the result of changes in
the Adviser's forecast of interest rate trends, industries or other economic
conditions, changes in the Adviser's assessment of the financial condition
of a particular issuer, for liquidity purposes, or to rebalance the
portfolio.
PRINCIPAL INVESTMENT RISKS The Fund invests primarily in short-term investment grade fixed-income
securities, which provide income and a level of protection of capital, but
present less potential for capital appreciation than equity securities. Two
principal risks of fixed-income (bond) investing are market risk and
selection risk. Market risk means that the bond market in general has ups
and downs, which may affect the performance of any individual fixed-income
security. Selection risk means that the particular bonds that are selected
for the Fund may underperform the market or other funds with similar
objectives. In addition to market risk and selection risk, the Fund will be
subject to the following additional investment risks:
Interest Rate Risk: All bonds fluctuate in value as interest rates
fluctuate. Generally, as interest rates rise, the value of the Fund's
investments, and of its shares, will decline. If interest rates decline, the
Fund's investments (and its share price) will generally increase in value.
In general, the
</TABLE>
13
<PAGE> 16
LEADER SHORT
RISK/RETURN SUMMARY AND FUND EXPENSES TERM BOND FUND
<TABLE>
<S> <C>
shorter the maturity of a bond, the lower the risk of price fluctuation and
the lower the return.
Credit Risk: It is possible that a bond issuer may have its credit rating
downgraded, or may not make timely interest and/or principal payments on its
bonds. The lower a bond's rating, the greater its credit risk. Nearly all
fixed-income investments, including U.S. Government securities, have
exposure to some degree of credit risk. This risk will be more pronounced to
the extent the Fund invests in securities rated below investment grade, or
"junk bonds". Mortgage-backed securities may be exposed to higher levels of
credit risk, depending upon the credit of the assets underlying such
securities, the issuer's exposure to the credit risk of its affiliates and
others, and the amount and quality of any credit enhancement associated with
the security.
Income Risk: It is possible that the Fund's income will decline over time
because of a decrease in interest rates or other factors. Income risk is
generally higher for portfolios holding short-term bonds. Because interest
rates vary, it is impossible to predict the income or yield of the Fund for
any particular period.
Prepayment Risk: Many of the Fund's investments, including investments in
mortgage- and asset-backed securities, are subject to the risk that the
principal amount of the underlying loan may be repaid prior to the bond's
maturity date. Such repayments are common when interest rates decline. When
such a repayment occurs, no additional interest will be paid on the
investment. Prepayment exposes a Fund to potentially lower return upon
subsequent reinvestment of the principal.
Foreign Investments: The Fund may invest in U.S. dollar-denominated bonds
issued by foreign governments or corporations. Foreign investments involve
certain special risks, including the risk of seizure by foreign governments,
imposition of restrictions on exchange, tax increases, less
publicly-available information, less liquidity due to limited markets and
higher transaction costs.
Investing in the Fund involves risks common to any investment in securities.
By itself, no Fund constitutes a balanced investment program. There is no
guarantee that the Fund will meet its goals. When you sell your shares in
the Fund, they may be worth more or less than you paid for them. It is
possible to lose money by investing in the Fund.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
A more complete discussion of the Fund's investments and related risks can
be found in the Statement of Additional Information.
No performance information is shown for the LEADER Short Term Bond Fund
because as of the date of this Prospectus, the Fund had not completed a full
calendar year of operations.
</TABLE>
14
<PAGE> 17
[ICON]
LEADER TAX-EXEMPT
RISK/RETURN SUMMARY AND FUND EXPENSES MONEY MARKET FUND
<TABLE>
<S> <C>
INVESTMENT OBJECTIVES Maximum current income exempt from federal income tax consistent with
preservation of capital and liquidity.
PRINCIPAL INVESTMENT The LEADER Tax-Exempt Money Market Fund invests primarily in high- quality,
STRATEGIES short-term money market instruments which pay interest that is exempt from
federal income tax. Under normal market conditions, the Fund will invest at
least 80% of its total assets in short-term tax-exempt instruments.
Federally tax-exempt obligations may include municipal securities and
commercial paper issued by states and other local governments. Securities
whose interest is considered a tax preference item under the federal
alternative minimum tax will be considered taxable for purposes of this
policy. The Fund may invest up to 20% of its net assets in short-term money
market instruments or "private activity" bonds, some or all of which may
produce income subject to federal alternative minimum tax.
At the time of purchase, all of the Fund's investments (other than U.S.
Government securities and related repurchase agreements) will be rated in
the highest rating category by an NRSRO (for example, Aaa by Moody's or AAA
by Standard & Poor's) or, if unrated, deemed by the Adviser to be of
comparable quality. In addition, all Fund investments will mature in 397
days or less, and the Fund's average maturity will not exceed 90 days.
While the Fund typically holds securities until maturity, decisions to sell
portfolio holdings are generally the result of a change in financial
condition of the issuer of a security, for liquidity purposes, or to
rebalance the portfolio.
PRINCIPAL INVESTMENT RISKS The Fund will invest primarily in high quality fixed income securities,
which provide income and a level of protection of capital, but do not
typically present opportunity for capital appreciation. The amount of
information available about issuers of tax-exempt debt may not be as
extensive as that which is made available by companies whose stock or debt
is publicly traded. In addition, changes in law or adverse determinations by
the Internal Revenue Service could make the income from some of the Fund's
investments taxable. The Fund's quality and maturity limitations described
above will reduce, but not altogether eliminate, the following additional
risks:
Interest Rate Risk: All debt instruments fluctuate in value as interest
rates fluctuate. Generally, as interest rates rise, the value of a Fund's
fixed income investments, and of its shares, will decline. If interest rates
decline, the Fund's investments (and its share price) will generally
increase in value. In general, the shorter the maturity of a debt
instrument, the lower the risk of price fluctuation and the lower the
return.
</TABLE>
15
<PAGE> 18
LEADER TAX-EXEMPT
RISK/RETURN SUMMARY AND FUND EXPENSES MONEY MARKET FUND
<TABLE>
<S> <C>
Credit Risk: It is possible that a debt issuer may have its credit rating
downgraded, or may not make timely interest and/or principal payments on its
debt instruments. The lower a debt instrument's rating, the greater its
credit risk. Nearly all fixed income investments have exposure to some
degree of credit risk. Corporate bonds and notes generally involve more
credit risk although even U.S. Government securities are generally
considered to have some credit risk. The Fund's use of repurchase agreements
also involves some credit risk, primarily the risk of loss if the seller
defaults.
Income Risk: It is possible that the Fund's income will decline over time
because of a decrease in interest rates or other factors. Income risk is
generally lower for longer-term debt instruments and higher for shorter-
term debt instruments. Because interest rates vary, it is impossible to
predict the income or yield of the Fund for any particular period.
Investing in the Fund involves risks common to any investment in securities.
By itself, no Fund constitutes a balanced investment program. There is no
guarantee that the Fund will meet its goals.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
this Fund.
A more complete discussion of the Fund's investments and related risks can
be found in the Statement of Additional Information.
No performance information is shown for the LEADER Money Market Fund because
as of the date of this Prospectus, the Fund had not completed a full
calendar year of operations.
</TABLE>
16
<PAGE> 19
[ICON]
LEADER MONEY
RISK/RETURN SUMMARY AND FUND EXPENSES MARKET FUND
<TABLE>
<S> <C>
INVESTMENT OBJECTIVES Maximum current income consistent with preservation of capital and
liquidity.
PRINCIPAL INVESTMENT The LEADER Money Market Fund (formerly the "Magna Money Market Fund")
STRATEGIES invests in a variety of high-quality money market instruments, including
U.S. Government securities, taxable municipal debt, commercial paper and
other corporate debt obligations, certificates of deposit, repurchase
agreements, bankers' acceptances and other dollar-denominated bank
obligations, including obligations issued by U.S. banks, their foreign
branches and/or foreign banks. At the time of purchase, all of the Fund's
investments (other than U.S. Government securities and related repurchase
agreements) will be rated in the highest rating category by an NRSRO (for
example, Aaa by Moody's or AAA by Standard & Poor's) or, if unrated, deemed
by the Adviser to be of comparable quality. In addition, all Fund
investments will mature in 397 days or less, and the Fund's average maturity
will not exceed 90 days.
While the Fund typically holds securities until maturity, decisions to sell
portfolio holdings are generally the result of a change in financial
condition of the issuer of a security, for liquidity purposes, or to
rebalance the portfolio.
PRINCIPAL INVESTMENT RISKS The Fund will invest primarily in high quality fixed income securities,
which provide income and a level of protection of capital, but do not
typically present opportunity for capital appreciation. The Fund's quality
and maturity limitations described above will reduce, but not altogether
eliminate the following risks:
Interest Rate Risk: All debt instruments fluctuate in value as interest
rates fluctuate. Generally, as interest rates rise, the value of a Fund's
fixed income investments, and of its shares, will decline. If interest rates
decline, the Fund's investments (and its share price) will generally
increase in value. In general, the shorter the maturity of a debt
instrument, the lower the risk of price fluctuation and the lower the
return.
Credit Risk: It is possible that a debt issuer may have its credit rating
downgraded, or may not make timely interest and/or principal payments on its
debt instruments. The lower a debt instrument's rating, the greater its
credit risk. Nearly all fixed income investments have exposure to some
degree of credit risk. Corporate bonds and notes generally involve more
credit risk although even U.S. Government securities are generally
considered to have some credit risk. The Fund's use of repurchase agreements
also involves some credit risk, primarily the risk of loss if the seller
defaults.
</TABLE>
17
<PAGE> 20
LEADER MONEY
RISK/RETURN SUMMARY AND FUND EXPENSES MARKET FUND
<TABLE>
<S> <C>
Income Risk: It is possible that the Fund's income will decline over time
because of a decrease in interest rates or other factors. Income risk is
generally lower for longer-term debt instruments and higher for shorter-
term debt instruments. Because interest rates vary, it is impossible to
predict the income or yield of the Fund for any particular period.
Investing in the Fund involves risks common to any investment in securities.
By itself, no Fund constitutes a balanced investment program. There is no
guarantee that the Fund will meet its goals.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
this Fund.
A more complete discussion of the Fund's investments and related risks can
be found in the Statement of Additional Information.
No performance information is shown for the LEADER Money Market Fund because
as of the date of this Prospectus, the Fund had not completed a full
calendar year of operations.
</TABLE>
18
<PAGE> 21
[ICON]
LEADER TREASURY
RISK/RETURN SUMMARY AND FUND EXPENSES MONEY MARKET FUND
<TABLE>
<S> <C>
INVESTMENT OBJECTIVES High level of current income consistent with stability of principal and
liquidity.
PRINCIPAL INVESTMENT The LEADER Treasury Money Market Fund invests primarily in high- quality,
STRATEGIES short-term money market securities whose interest and principal payments are
backed by the full faith and credit of the U.S. Government. Under normal
market conditions, the Fund will invest substantially all of its total
assets in money market securities issued by the U.S. Treasury and certain
U.S. Government agencies and instrumentalities that provide income that is
generally not subject to state income tax. All Fund investments will mature
in 397 days or less, and the Fund's average maturity will not exceed 90
days.
While the Fund typically holds securities until maturity, decisions to sell
portfolio holdings are generally the result of a change in financial
condition of the issuer of a security, for liquidity purposes, or to
rebalance the portfolio.
PRINCIPAL INVESTMENT RISKS The Fund will invest primarily in high quality fixed income securities,
which provide income and a level of protection of capital, but do not
typically present opportunity for capital appreciation. The Fund's issuer
selection, credit quality and maturity limitations will reduce, but not
altogether eliminate, the following additional risks:
Interest Rate Risk: All debt instruments fluctuate in value as interest
rates fluctuate. Generally, as interest rates rise, the value of a Fund's
fixed income investments, and of its shares, will decline. If interest rates
decline, the Fund's investments (and its share price) will generally
increase in value. In general, the shorter the maturity of a debt
instrument, the lower the risk of price fluctuation and the lower the
return.
Credit Risk: It is possible that a debt issuer may have its credit rating
downgraded, or may not make timely interest and/or principal payments on its
debt instruments. The lower a debt instrument's rating, the greater its
credit risk. Nearly all fixed income investments have exposure to some
degree of credit risk. Corporate bonds and notes generally involve more
credit risk although even U.S. Government securities are generally
considered to have some credit risk. The Fund's use of repurchase agreements
also involves some credit risk, primarily the risk of loss if the seller
defaults.
Income Risk: It is possible that the Fund's income will decline over time
because of a decrease in interest rates or other factors. Income risk is
generally lower for longer-term debt instruments and higher for shorter-
term debt instruments. Because interest rates vary, it is impossible to
predict the income or yield of the Fund for any particular period.
</TABLE>
19
<PAGE> 22
LEADER
TREASURY
RISK/RETURN SUMMARY AND FUND EXPENSES MONEY MARKET FUND
<TABLE>
<S> <C>
Investing in the Fund involves risks common to any investment in securities.
By itself, no Fund constitutes a balanced investment program. There is no
guarantee that the Fund will meet its goals.
An investment in the Fund is not a bank deposit and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although the Fund seeks to preserve the value of your
investment at $1.00 per share, it is possible to lose money by investing in
this Fund.
A more complete discussion of the Fund's investments and related risks can
be found in the Statement of Additional Information.
No performance information is shown for the LEADER Money Market Fund because
as of the date of this Prospectus, the Fund had not completed a full
calendar year of operations.
</TABLE>
20
<PAGE> 23
RISK/RETURN SUMMARY AND FUND EXPENSES FEES AND EXPENSES
FEES AND EXPENSES
The following table describes the Fees and Expenses that you may pay if you
buy and hold Institutional Shares of the Funds:
<TABLE>
<CAPTION>
LEADER LEADER
LEADER LEADER TAX-EXEMPT LEADER TREASURY
SHAREHOLDER FEES GROWTH & LEADER LEADER INTERMEDIATE LEADER MONEY MONEY MONEY
(FEES PAID DIRECTLY FROM INCOME BALANCED TAX-EXEMPT GOVERNMENT SHORT TERM MARKET MARKET MARKET
YOUR INVESTMENT) FUND FUND BOND FUND BOND FUND BOND FUND FUND FUND FUND
<S> <C> <C> <C> <C> <C> <C> <C> <C>
MAXIMUM SALES CHARGE (LOAD)
IMPOSED ON PURCHASES (AS A
PERCENTAGE OF OFFERING PRICE) NONE NONE NONE NONE NONE NONE NONE NONE
MAXIMUM SALES CHARGE (LOAD)
IMPOSED ON REINVESTED
DIVIDENDS NONE NONE NONE NONE NONE NONE NONE NONE
MAXIMUM DEFERRED SALES LOAD NONE NONE NONE NONE NONE NONE NONE NONE
ANNUAL FUND OPERATING
EXPENSES (EXPENSES THAT ARE
DEDUCTED FROM FUND ASSETS)
MANAGEMENT FEES(1) 0.75% 0.80% 0.50% 0.50% 0.55% 0.40% 0.40% 0.40%
OTHER EXPENSES(2) 0.57% 0.75%(3) 0.82%(3) 0.64% 1.04%(3) 0.75%(3) 0.62% 0.75%(3)
TOTAL ANNUAL FUND OPERATING
EXPENSES(4) 1.32% 1.55% 1.32% 1.14% 1.59% 1.15% 1.02% 1.15%
</TABLE>
(1) As of the date of this Prospectus, the Adviser is voluntarily waiving the
following portion of its management fee from each Fund: Growth & Income
Fund - 0.10%; Balanced Fund - 0.20%; Tax-Exempt Bond Fund - 0.30%;
Intermediate Government Bond Fund - 0.10%; Short Term Bond Fund - 0.45%;
Tax-Exempt Money Market Fund - 0.30%; Money Market Fund - 0.15%; and
Treasury Money Market Fund - 0.28%. These waivers may be eliminated at
any time in the Adviser's sole discretion.
(2) Includes an annual administrative services fee of up to 0.30% for each of
the Growth & Income Fund, Balanced Fund, Tax-Exempt Bond Fund,
Intermediate Government Bond Fund and Short Term Bond Fund, and up to
0.25% for each Money Fund. Part or all of these fees, which are payable
under an Administrative Services Plan (the "Plan") adopted by the Board
of Trustees of LEADER Mutual Funds, may be paid to financial institutions
that provide certain administrative services to their customers or other
shareholders who own Institutional Shares of the Funds. As of the date of
this Prospectus, no administrative service fees are being paid by any
Fund under the Plan, but such fees could be imposed at any time.
(3) Other Expenses are estimated for the Fund's current fiscal year.
(4) As a result of the Adviser's voluntary waiver of a portion of its
management fee (see footnote 1 above), the absence of any administrative
service fees currently being paid under the Plan (see footnote 2 above)
and recent changes in each Fund's net assets, as of the date of this
Prospectus, net annual operating expenses for each Fund are expected to
be as follows: GROWTH & INCOME FUND - 0.99%; BALANCED FUND - 1.05%;
TAX-EXEMPT BOND FUND - 0.77%; INTERMEDIATE GOVERNMENT BOND FUND - 0.82%;
SHORT TERM BOND FUND - 0.84%; TAX-EXEMPT MONEY MARKET FUND - 0.57%; MONEY
MARKET FUND - 0.57%; AND TREASURY MONEY MARKET FUND - 0.57%. THE ADVISER
MAY ELIMINATE ITS VOLUNTARY FEE WAIVER, AND/OR THE FUNDS MAY COMMENCE
PAYING ADMINISTRATIVE SERVICE FEES UNDER THE PLAN, AT ANY TIME.
21
<PAGE> 24
RISK/RETURN SUMMARY AND FUND EXPENSES FEES AND EXPENSES
The Example at the right is intended to help you compare the cost of
investing in the LEADER Mutual Funds with the costs of investing in other
mutual funds. It estimates 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 only, your actual
costs may be higher or lower. The examples do not reflect any fee waivers
that may be in effect for part or all of the relevant period.
EXAMPLE
<TABLE>
<S> <C> <C> <C> <C>
1 3 5 10
YEAR YEARS YEARS YEARS
LEADER GROWTH & INCOME FUND $134 $418 $723 $1,590
LEADER BALANCED FUND $158 $490
LEADER TAX-EXEMPT BOND FUND $134 $418
LEADER INTERMEDIATE GOVERNMENT
BOND FUND $116 $362 $628 $1,386
LEADER SHORT TERM BOND FUND $162 $502
LEADER TAX-EXEMPT MONEY MARKET
FUND $117 $365
LEADER MONEY MARKET FUND $104 $325 $563 $1,248
LEADER TREASURY MONEY MARKET FUND $117 $365
</TABLE>
22
<PAGE> 25
RISK/RETURN SUMMARY AND FUND EXPENSES
INVESTING FOR DEFENSIVE PURPOSES
During adverse market conditions, each Fund may, for temporary defensive
purposes, invest up to 100% of its total assets in money market instruments.
(The Tax-Exempt Money Market Fund, Money Market Fund and Treasury Money
Market Fund (each a "Money Fund" and collectively, the "Money Funds") may
invest 100% of their total assets in money market investments for any
purpose.) Each of the Intermediate Government Bond Fund, the Short Term Bond
Fund and the Tax-Exempt Bond Fund may also shorten its dollar-weighted
average maturity below its normal range if such action is deemed appropriate
by the Adviser for temporary defensive purposes. If a Fund is investing
defensively, it will not be pursuing its investment objective.
ADDITIONAL INFORMATION REGARDING FUND INVESTMENTS AND POLICIES
Except for those policies specifically identified as "fundamental", the
investment objectives and policies set forth in this Prospectus may be
changed by the Adviser, subject to review and approval by the Trust's Board
of Trustees of LEADER Mutual Funds (the "Trust"), without shareholder vote.
The investment objective of each of the Growth & Income Fund and Intermediate
Government Bond Fund is fundamental. The investment objective of each other
Fund is non-fundamental, and may be changed without shareholder vote.
Each of the Funds may invest in shares of other open-end investment
companies, consistent with, and to the extent permitted by, applicable law.
In addition, pursuant to an order issued by the U.S. Securities and Exchange
Commission (the "SEC"), each non-Money Fund may invest a portion of its
assets in one or more of the Money Funds for cash management purposes.
The Funds' "Principal Investment Strategies" described in the Risk/Return
Summaries earlier in this Prospectus included references to certain
investments you might not be familiar with. Please refer to a Fund's
Risk/Return Summary to identify which of the following investments are
expected to be principally used by that Fund in pursuit of its investment
objective:
adjustable rate securities -- securities that have interest rates that are
reset at periodic intervals, usually by reference to some interest rate
index or market interest rate.
American Depositary Receipts ("ADR's") -- certificates that represent an
interest in the shares of a foreign-based corporation that are held in
trust by a bank.
asset-backed securities -- interests in pools created by the grouping of
certain governmental, government-related or private loans, receivables and
other lender assets.
collateralized mortgage obligations (CMO's) -- bonds generally issued by a
special purpose vehicle and collateralized by a pool of mortgages.
mortgage-backed securities -- participations in organized pools of
residential mortgages, the principal and interest payments on which are
passed from the mortgage originators through intermediaries that pool and
repackage them in the form of securities.
payable-in-kind bonds -- bonds in which interest during the initial few
years is typically paid in additional debentures rather than in cash.
23
<PAGE> 26
RISK/RETURN SUMMARY AND FUND EXPENSES
private activity bonds -- includes bonds issued by public authorities to
finance projects such as privately operated housing facilities, local
facilities for supplying water, gas or electricity or student loans, as
well as public or private institutions for the construction of educational,
hospital, housing and other facilities.
repurchase agreements -- agreements by which a Fund purchases a security
and obtains a simultaneous commitment from the seller (typically a bank) to
repurchase the security at an agreed upon price and date (typically one to
seven days).
A more complete discussion of each of these investments, and of each Fund's
investments and related risks, can be found in the Statement of Additional
Information.
24
<PAGE> 27
[ICON]
FUND MANAGEMENT
INVESTMENT ADVISER
Union Planters Bank, National Association ("Union Planters" or the
"Adviser"), One South Church Street, Suite 500, Belleville, Illinois 62220,
serves as investment adviser to the LEADER Mutual Funds. Union Planters, a
wholly-owned subsidiary of Union Planters Corporation, is a multi-state
national banking association headquartered in Memphis, Tennessee with total
assets of approximately $34 billion.
For investment advisory services provided by Union Planters, the Funds paid
as follows during the fiscal year ended August 31, 2000:
<TABLE>
<CAPTION>
AS A PERCENTAGE OF
AVERAGE NET ASSETS
AS OF 8/31/00*
<S> <C>
------------------------------
LEADER Growth & Income Fund 0.50%
------------------------------
LEADER Tax-Exempt Bond Fund 0.30%
-------------------------------------------------------------------------------------
LEADER Intermediate Government Bond Fund 0.40%
------------------------------
LEADER Money Market Fund 0.17%
------------------------------
</TABLE>
* Absent expense limitations that were in place throughout this period, these
amounts would have been 0.75%, 0.50%, 0.40% and 0.50% (as a percentage of
average daily net assets) for the Growth & Income Fund, Intermediate
Government Bond Fund, Money Market Fund and Tax-Exempt Bond Fund,
respectively.
In addition, the Balanced Fund, Short Term Bond Fund, Tax-Exempt Money Market
Fund and Treasury Money Market Fund will pay Union Planters up to 0.80%,
0.55%, 0.40% and 0.40% (as a percentage of average daily net assets),
respectively, for investment advisory services rendered to such Funds.
PORTFOLIO MANAGERS
Union Planters has several portfolio managers committed to the day-to-day
management of the Funds.
Gary J. Guthrie is the portfolio manager for the LEADER Growth & Income Fund.
Mr. Guthrie is a graduate of Southern Illinois University and is currently a
Vice President of Union Planters.
L. Clark Zedric is the portfolio manager for the LEADER Intermediate
Government Bond Fund. He received his MBA from Illinois State University and
is currently a Vice President of Union Planters.
Both Mr. Guthrie and Mr. Zedric have served as portfolio managers since these
Funds' inception in 1994.
Lucy Kasson is the portfolio manager for the LEADER Tax-Exempt Bond Fund and
each of the Money Funds. A graduate of DePaul University, Ms. Kasson joined
Union Planters in 1999, where she is currently a Vice President and has
served as the portfolio manager for each of these Funds since their
inception. Ms. Kasson was employed by Nuveen Advisory Corporation from 1978
until 1999, where she served as a portfolio manager from 1995 to 1999.
The LEADER Balanced Fund is managed by Mr. Guthrie, Ms. Kasson and Mr.
Zedric.
The LEADER Short Term Bond Fund is managed by Mr. Zedric and James W. Duies.
Mr. Duies joined Union Planters in April 1999 as a Junior Portfolio Manager
and became a portfolio manager in 2000. Prior to joining Union Planters, Mr.
Duies was a Trust & Investment Assistant at SunTrust Investments. Mr. Duies
graduated from Millikin University in 1995.
The Statement of Additional Information ("SAI") has more detailed information
about the Adviser and the Funds' other service providers.
25
<PAGE> 28
FUND MANAGEMENT
DISTRIBUTOR AND ADMINISTRATOR
BISYS Fund Services L.P., ("BISYS" or the "Distributor") is the distributor
of each Fund, and also provides management and administrative services to the
Funds, including providing office space, equipment and clerical personnel to
the Funds and supervising custodial, auditing, valuation, bookkeeping and
legal services. BISYS Fund Services, Inc. (the "Transfer Agent"), an
affiliate of BISYS, acts as the fund accountant, transfer agent and dividend
paying agent of the Funds. BISYS and BISYS Fund Services, Inc. are each
located at 3435 Stelzer Road, Columbus, Ohio 43219.
26
<PAGE> 29
[GRAPHIC]
SHAREHOLDER INFORMATION
PRICING OF FUND SHARES
----------------------------------------
HOW NET ASSET VALUE IS
CALCULATED
The net asset value, or
NAV, is calculated by
adding the total value of
the Fund's investments and
other assets, subtracting
its liabilities and then
dividing that figure by the
number of outstanding
shares of the Fund:
NAV =
Total Assets - Liabilities
------------------------------------------------------------------------------
Number of Shares
Outstanding
---------------------------
AVOID 31% TAX WITHHOLDING
Each Fund is required to withhold 31% of taxable dividends, capital gains
distributions and redemptions paid to shareholders who have not provided the
Fund with their certified taxpayer identification number in compliance with IRS
rules. To avoid this, make sure you provide your correct Tax Identification
Number (Social Security Number for most investors) on your account application.
LEADER MONEY FUNDS
The NAV of each Money Fund is expected to be constant at $1.00 per share,
although this value is not guaranteed. The NAV is determined at 3:00 p.m.
Eastern time (2:00 p.m. Central time) for the Money Market Fund and Treasury
Money Market Fund and 12:30 p.m. Eastern time (11:30 a.m. Central time) for
the Tax-Exempt Money Market Fund on all days when the New York Stock Exchange
(the "Exchange") is open for regular trading. In addition to Exchange
holidays, the Money Funds will also be closed on Columbus Day and Veterans'
Day. The Money Funds value their securities at amortized cost. The amortized
cost method involves valuing a portfolio security initially at its cost on
the date of the purchase and thereafter assuming a constant amortization to
maturity of the difference between the principal amount due at maturity and
initial cost.
LEADER GROWTH & INCOME FUND
LEADER BALANCED FUND
LEADER TAX-EXEMPT BOND FUND
LEADER INTERMEDIATE GOVERNMENT BOND FUND
LEADER SHORT TERM BOND FUND
The per share NAV for each Fund other than the Money Funds is determined, and
its shares are priced at the close of regular trading on the Exchange,
normally at 4:00 p.m. Eastern time (3:00 p.m. Central time), on days the
Exchange is open for regular trading.
Your order for the purchase, sale or exchange of shares is priced at the next
NAV calculated after a properly completed order is received and accepted by
the Fund on any day that the Exchange is open for business. For example, if
you place a purchase order to buy shares of the LEADER Growth & Income Fund,
it must be received prior to the close of regular trading on the Exchange
(generally 4:00 p.m. Eastern time) in order to receive the NAV calculated on
that day. If your order is received after the close of regular trading on the
Exchange that day, you will receive the NAV calculated on the next business
day.
27
<PAGE> 30
SHAREHOLDER INFORMATION
The Funds' (other than the Money Funds') securities, other than short-term
debt obligations, are generally valued at current market prices unless market
quotations are not available, in which case securities will be valued by a
method that the Trust's Board of Trustees believes accurately reflects fair
value. Debt obligations with remaining maturities of 60 days or less are
valued at amortized cost or based on their acquisition cost.
PURCHASING AND SELLING YOUR SHARES
Institutional Shares of the LEADER Mutual Funds are available to investors
through the Funds' Distributor or through certain banks or other financial
institutions. If you are purchasing Institutional Shares through a financial
institution, you must follow the procedures established by your institution.
Your financial institution is responsible for sending your purchase order to
the Fund's Distributor and wiring payment to the Fund's custodian. Your
financial institution holds the shares in your name and receives all
confirmations of purchases and sales. Financial institutions placing orders
for themselves or on behalf of their customers should call the Fund at
1-800-219-4182. The Fund reserves the right to refuse any order to buy
shares.
Investments in Institutional Shares of the Funds require a minimum investment
of $1,000,000, which may be waived at the Adviser's or Distributor's
discretion. If you purchase shares through a bank or other financial
institution, these institutions may charge additional fees, require higher
minimum investments or impose other limitations on buying and selling shares
(such as an earlier cut-off time for purchase and sale requests). All
purchases must be in U.S. dollars. Third-party checks are not accepted.
Orders to sell or "redeem" Institutional Shares should be placed with the
same financial institution that placed the original purchase order in
accordance with the procedures established by that institution. Your
financial institution is responsible for sending your order to the Fund's
Distributor and for crediting your account with the proceeds. The Fund may
charge a wire transfer fee of up to $15 per wire, and your financial
institution may charge an additional fee.
You may sell your shares on any day the Exchange is open for regular trading
(except, in the case of the Money Funds only, Columbus Day and Veterans'
Day). Your sales price will be the NAV next determined after your sell order
is received by the Funds, the Transfer Agent, or your investment
representative. See "Pricing of Fund Shares" above. Normally you will receive
your proceeds within a week after your request is received. See section on
"General Policies on Selling Shares" below.
The Fund's Transfer Agent may require a signature guarantee unless the
redemption proceeds are payable to the shareholder of record and the proceeds
are either mailed to the shareholder's address of record or electronically
transferred to the account designated on the original account application. A
signature guarantee helps prevent fraud, and you may obtain one from most
banks and broker/dealers. Contact the Fund for more information on signature
guarantees.
Special Note for Pre-9/1/00 Shareholders Only: Prior to the redesignation of
Class A Shares as Institutional Shares on September 1, 2000, Class A Shares
were subject to lower minimum initial investment requirements ranging from
$100 to $250 and to minimum subsequent investment requirements ranging from
$100 to $150. Shareholders of the Funds as of August 31, 2000 will continue
to be eligible to buy Institutional Shares at these lower minimum investment
levels, and may continue to participate in any Fund investment programs in
which they were a participant as of August 31, 2000.
28
<PAGE> 31
SHAREHOLDER INFORMATION
If you purchased shares through a financial intermediary, please follow the
instructions for purchases and sales set forth above. For all other
shareholders, you may continue to purchase or redeem shares by wire by
calling 1-800-219-4182 for instructions. You may also continue to purchase or
redeem shares by mail, by writing to: LEADER Mutual Funds, P.O. Box 182754,
Columbus, OH 43218-2784 (for overnight mail: LEADER Mutual Funds, c/o BISYS
Fund Services, Attn: T.A. Operations, 3435 Stelzer Road, Columbus, OH 43219).
For additional purchases, please use the investment slip attached to your
account statement, and indicate the fund name, amount invested, and your
account name and number, and make your check, bank draft or money order
payable to "LEADER Mutual Funds". Please include your account number on the
check.
-----------------------------------------------------------------------------
REINVESTMENT OF DIVIDENDS AND DISTRIBUTIONS
All dividends and distributions will be automatically reinvested unless you
request otherwise. You can, however, elect to receive them in cash. Capital
gains are distributed at least annually.
DISTRIBUTIONS ARE MADE ON A PER SHARE BASIS REGARDLESS OF HOW LONG YOU'VE
OWNED YOUR SHARES. THEREFORE, IF YOU INVEST SHORTLY BEFORE THE DISTRIBUTION
DATE, SOME OF YOUR INVESTMENT MAY BE RETURNED TO YOU IN THE FORM OF A TAXABLE
DISTRIBUTION.
-----------------------------------------------------------------------------
29
<PAGE> 32
SHAREHOLDER INFORMATION
GENERAL POLICIES ON SELLING SHARES
VERIFYING TELEPHONE REDEMPTIONS
The Trust has instituted procedures designed to ensure that telephone
redemptions are made by authorized shareholders only. All telephone calls are
recorded for your protection and you will be asked for information to verify
your identity. By completing an account application, you agree that the
Trust, Distributor and Transfer Agent will not be liable for any loss
incurred by you by reason of the Trust accepting unauthorized telephone
redemption requests for your account if the Trust reasonably believes the
instructions to be genuine and has employed reasonable procedures to confirm
the instructions communicated by telephone are genuine. The Trust may accept
telephone redemption instructions from any person identifying himself as the
owner of an account or the owner's broker where the owner has not declined in
writing to utilize this service.
REDEMPTIONS WITHIN 10 DAYS OF INITIAL INVESTMENT
When you have made your initial investment by check, you may redeem any
portion of it at any time. Proceeds from the redemption, however, will not be
delivered to you until the Transfer Agent is satisfied that the check has
cleared (which may require up to 10 business days). You can avoid this delay
by purchasing shares with a certified check.
REFUSAL OF REDEMPTION REQUEST
The Funds may postpone payment for shares at times when the New York Stock
Exchange is closed or under any emergency circumstances as determined by the
SEC. If you experience difficulty making a telephone redemption during
periods of drastic economic or market change, you can send the Funds your
request by regular or express mail at LEADER Mutual Funds c/o BISYS Fund
Services Attn: T.A. Operations 3435 Stelzer Road Columbus, OH 43219. The
request should include your fund and account number, the amount you wish to
redeem, the address where your check should be sent, and the account owner(s)
signature.
REDEMPTION IN KIND
The Funds reserve the right to make payment in securities rather than cash,
known as a "redemption in kind." This could occur under extraordinary
circumstances, such as a very large redemption that could affect Fund
operations (for example, more than 1% of a Fund's net assets), or in other
circumstances where the Fund deems it to be in best interests of the Fund and
its other shareholders. Redemptions in kind will consist of securities equal
in market value to your shares. These securities will generally consist of
liquid securities, but will not generally represent a pro rata share of the
relevant Fund's assets. When you convert these securities to cash, you will
pay brokerage charges.
CLOSING OF SMALL ACCOUNTS
If by reason of a redemption or exchange your account falls below the
applicable minimum initial investment, the relevant Fund may ask you to
increase your balance. If it is still below the minimum after 60 days, the
Fund may close your account and send you the proceeds at the current NAV.
30
<PAGE> 33
SHAREHOLDER INFORMATION
GENERAL POLICIES ON SELLING SHARES
CONTINUED
UNDELIVERABLE REDEMPTION CHECKS
For any shareholder who chooses to receive distributions in cash: If
distribution checks (1) are returned and marked as "undeliverable" or (2)
remain uncashed for six months, your account will be changed automatically so
that all future distributions are reinvested in your account. Checks that
remain uncashed for six months will be canceled and the money reinvested in
the appropriate Fund.
DISTRIBUTION ARRANGEMENTS
Institutional Shares are sold through the Distributor, and are available for
purchase primarily by financial institutions, such as banks, trust companies,
thrift institutions, mutual funds or other financial institutions acting on
their own behalf or on behalf of their qualified accounts as well as by
shareholders of LEADER Mutual Funds as of August 31, 2000.
EXCHANGING YOUR SHARES
You can exchange your Institutional Shares in one Fund for Institutional
Shares of another LEADER Mutual Fund (see "Notes on Exchanges" below). No
transaction fees are charged in connection with such exchanges.
You must meet the minimum investment requirements for the Fund into which you
are exchanging. Exchanges from one Fund to another are taxable.
INSTRUCTIONS FOR EXCHANGING SHARES
Exchanges may be made by sending a written request to LEADER Mutual Funds,
P.O. Box 182754, Columbus OH 43218-2784, or by calling 1-800-219-4182. Please
provide the following information:
- Your name and telephone number
- The exact name on your account and account number
- Taxpayer identification number (usually your Social Security number)
- Dollar value or number of shares to be exchanged
- The name and class of the Fund from which the exchange is to be made
- The name and class of the Fund into which the exchange is being made
See "General Policies on Selling Shares" above for important information
about telephone transactions.
NOTES ON EXCHANGES
The registration and taxpayer identification numbers of the two accounts must
be identical. If you don't have an account with the new Fund, a new account
will be opened with the same features unless you write to tell us to change
them.
The Exchange Privilege may be modified or eliminated at any time with 60 days
notice.
The exchange privilege is available only in states where shares of the new
Fund may be sold.
31
<PAGE> 34
SHAREHOLDER INFORMATION
EXCHANGING YOUR SHARES
CONTINUED
If shares of a Fund are purchased by check, those shares cannot be exchanged
until your check has cleared, which could take up to 10 days.
All exchanges are based on the relative net asset value next determined after
the exchange order is received by the Funds. Be sure to read the Prospectus
carefully of any Fund into which you wish to exchange shares.
DIVIDENDS AND DISTRIBUTIONS
The Funds pay dividends to their shareholders from the Funds' respective net
investment income. The Funds distribute any net capital gains that have been
realized. Income dividends on the Growth & Income Fund and the Balanced Fund
are declared and paid quarterly, while income dividends for all other Funds
are declared daily and paid monthly. Capital gains, if any, for all Funds are
distributed at least annually.
TAXATION
FEDERAL TAXES
Each Fund intends to qualify as a "regulated investment company" for federal
income tax purposes and to meet all other requirements necessary for it to be
relieved of federal taxes on income and gains it distributes to shareholders.
Each Fund contemplates declaring as dividends each year all or substantially
all of its taxable income, including its net capital gain (the excess of net
long-term capital gain over net short-term capital loss). You will be subject
to income tax on these distributions regardless of whether they are paid in
cash or reinvested in additional shares. Distributions properly designated by
a Fund as derived from net capital gain of a Fund will be taxable to you as
such, regardless of how long you have held your shares. Other Fund
distributions (other than "exempt-interest dividends" paid by the Tax-Exempt
Bond Fund or the Tax-Exempt Money Market Fund) will generally be taxable as
ordinary income.
The Tax-Exempt Bond Fund and the Tax-Exempt Money Market Fund (the
"Tax-Exempt Funds") intend to distribute primarily income that is exempt from
federal taxation. The Tax-Exempt Funds may, however, invest in securities
that generate income that is not exempt from federal taxation. In addition,
income that is exempt from federal taxation may be subject to state and local
taxation. Any capital gains will be taxable federally and may also be subject
to state or local taxation. Distributions designated by the Tax-Exempt Funds
as "exempt-interest dividends" are not generally subject to federal income
tax. However, if you receive social security or railroad retirement benefits,
you should consult your tax adviser to determine what effect, if any, an
investment in a Tax-Exempt Fund may have on the federal taxation of your
benefits. In addition, an investment in a Tax-Exempt Fund may result in
liability for federal alternative minimum tax, both for corporate and
individual shareholders. You will be notified annually of the tax status of
distributions to you.
32
<PAGE> 35
SHAREHOLDER INFORMATION
TAXATION
CONTINUED
You should note that if you purchase shares just prior to a capital gain
distribution, the purchase price will reflect the amount of the upcoming
distribution, but you will be taxed on the entire amount of the distribution
received, even though, as an economic matter, the distribution simply
constitutes a return of capital. This is known as "buying into a dividend."
You will generally recognize taxable gain or loss on a sale, exchange or
redemption of your shares, including an exchange for shares of another Fund
based on the difference between your tax basis in the shares and the amount
you receive for them. In the case of the Money Funds, however, the
recognition of gain or loss on a sale, exchange or redemption of your shares
is unlikely to occur. (To aid in computing your tax basis, you should retain
your account statements for the periods during which you held shares.) Any
loss realized on shares held for six months or less will be treated as a
long-term capital loss to the extent of any capital gain dividends that were
received on the shares.
One notable exception to these tax principles is that distributions on, and
sales, exchanges and redemptions of, shares held in an Individual Retirement
Account (or IRA) or other tax-qualified plan will not be currently taxable.
The foregoing is a summary of certain federal income tax consequences of
investing in the Funds. For more information on the federal income taxation
of the Funds, see the SAI. You should consult your tax adviser to determine
the precise effect of an investment in the Funds on your particular tax
situation (including possible liability for state and local taxes).
33
<PAGE> 36
[GRAPHIC]
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
The Financial Highlights tables are intended to help you understand each
Fund's financial performance for the last five years or, in the case of the
Tax-Exempt Bond Fund and Money Market Fund, since inception. Certain
information reflects financial results for a single Fund share. The total
returns in the tables represent the rate that an investor would have earned
or lost on an investment in a Fund (assuming reinvestment of all dividends
and distributions). Except as otherwise noted below, this information has
been audited by PricewaterhouseCoopers LLP, whose report, along with the
Trust's financial statements, is incorporated by reference in the Trust's
SAI, which is available upon request. Institutional Shares are the
continuation of the Fund's single class of shares, Class A Shares, which
existed prior to September 1, 2000. Class A Shares were redesignated as
"Institutional Shares" effective September 1, 2000.
LEADER GROWTH & INCOME FUND -- INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 30.37 $ 23.46 $ 22.18 $ 16.42 $ 14.05
-------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.32 0.30 0.23 0.26 0.24
Net realized and unrealized gains
from investment transactions 4.75 7.53 1.72 6.12 2.39
-------------------------------------------------------------------------------------------------------
Total income from investment
operations 5.07 7.83 1.95 6.38 2.63
-------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Net investment income (0.32) (0.27) (0.25) (0.25) (0.23)
Net realized gain from investment
transactions (0.15) (0.65) (0.42) (0.37) (0.03)
-------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.47) (0.92) (0.67) (0.62) (0.26)
-------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 34.97 $ 30.37 $ 23.46 $ 22.18 $ 16.42
-------------------------------------------------------------------------------------------------------
Total return(1) 16.80% 33.73% 8.84% 39.59% 18.77%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, at end of period ($000's) $177,528 $145,919 $74,131 $70,276 $39,995
Ratio of expenses to average net
assets 0.82% 0.87% 0.99% 1.06% 1.27%
Ratio of net investment income to
average net assets 0.99% 1.05% 0.96% 1.36% 1.56%
Ratio of expenses to average net
assets without fee waivers* 1.32% 1.37% 1.49% 1.56% 1.77%
Ratio of net investment income to
average net assets without fee
waivers* 0.49% 0.55% 0.46% 0.86% 1.06%
Portfolio turnover rate 17% 9% 26% 17% 31%
</TABLE>
* During the period certain fees were voluntarily reduced. If such voluntary fee
reductions had not occurred, the ratios would have been as indicated.
(1) Had the Adviser, Distributor, and administrator not reduced or waived
certain expenses, total returns would have been lower. Total returns for
periods of less than one year are not annualized.
34
<PAGE> 37
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
CONTINUED
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
LEADER TAX-EXEMPT BOND FUND -- INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
JULY 24,
2000*
THROUGH
AUGUST 31,
2000
<S> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 10.00
-------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.05
Net realized and unrealized gains (losses) from investment
transactions 0.07
-------------------------------------------------------------------------------
Total income from investment operations 0.12
-------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Net investment income (0.05)
-------------------------------------------------------------------------------
Total dividends and distributions (0.05)
-------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 10.07
-------------------------------------------------------------------------------
Total return(1) 1.16%(2)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, at end of period ($000's) $ 22,261
Ratio of expenses to average net assets 0.87%(3)
Ratio of net investment income to average net assets 4.26%(3)
Ratio of expenses to average net assets without fee
waivers** 1.32%(3)
Ratio of net investment income to average net assets
without fee waivers** 3.81%(3)
Portfolio turnover rate 9%(3)
</TABLE>
* Commencement of operations.
** During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(1) Total return excludes sales charges. Had the Adviser, Distributor, and
administrator not reduced or waived certain expenses, total returns would
have been lower. Total returns for periods of less than one year are not
annualized.
(2) Not annualized.
(3) Annualized.
35
<PAGE> 38
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
CONTINUED
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
LEADER INTERMEDIATE
GOVERNMENT BOND FUND -- INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 12.04 $ 13.00 $ 12.61 $ 12.43 $ 12.75
-------------------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.74 0.72 0.76 0.79 0.76
Net realized and unrealized gains
(losses) from investment
transactions (0.07) (0.96) 0.39 0.19 (0.32)
-------------------------------------------------------------------------------------------------------
Total income from investment
operations 0.67 (0.24) 1.15 0.98 0.44
-------------------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Net investment income (0.74) (0.72) (0.76) (0.79) (0.76)
In excess of net investment income -- -- -- (0.01) --
-------------------------------------------------------------------------------------------------------
Total dividends and distributions (0.74) (0.72) (0.76) (0.80) (0.76)
-------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 11.97 $ 12.04 $ 13.00 $ 12.61 $ 12.43
-------------------------------------------------------------------------------------------------------
Total return(1) 5.86% (1.97)% 9.33% 7.96% 3.48%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, at end of period ($000's) $131,101 $80,607 $72,614 $64,459 $56,764
Ratio of expenses to average net
assets 0.79% 0.82% 0.90% 0.96% 1.05%
Ratio of net investment income to
average net assets 6.28% 5.69% 5.92% 6.15% 5.97%
Ratio of expenses to average net
assets without fee waivers* 1.14% 1.17% 1.25% 1.31% 1.40%
Ratio of net investment income to
average net assets without fee
waivers* 5.93% 5.34% 5.57% 5.80% 5.62%
Portfolio turnover rate 14% 16% 32% 19% 20%
</TABLE>
* During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(1) Had the Adviser, Distributor, and administrator not reduced or waived
certain expenses, total returns would have been lower. Total returns for
periods of less than one year are not annualized.
36
<PAGE> 39
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
CONTINUED
(FOR A SHARE OUTSTANDING THROUGHOUT THE PERIOD)
LEADER MONEY MARKET FUND -- INSTITUTIONAL SHARES
<TABLE>
<CAPTION>
JULY 7,
YEAR 1999*
ENDED THROUGH
AUGUST 31, AUGUST 31,
2000 1999
<S> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 1.000 $ 1.000
------------------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income 0.055 0.007
------------------------------------------------------------------------------------------
Total income from investment operations 0.055 0.007
------------------------------------------------------------------------------------------
LESS DISTRIBUTIONS:
Net investment income (0.055) (0.007)
Total dividends and distributions (0.055) (0.007)
------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 1.000 $ 1.000
------------------------------------------------------------------------------------------
Total return(1) 5.60% 0.67%(2)
RATIOS AND SUPPLEMENTAL DATA:
Net assets, at end of period ($000's) $276,186 $166,335
Ratio of expenses to average net assets 0.51% 0.51%(3)
Ratio of net investment income to average net assets 5.50% 4.35%(3)
Ratio of expenses to average net assets without fee
waivers** 1.02% 1.02%(3)
Ratio of net investment income to average net assets
without fee waivers** 4.99% 3.84%(3)
</TABLE>
* Commencement of operations.
** During the period certain fees were voluntarily reduced. If such voluntary
fee reductions had not occurred, the ratios would have been as indicated.
(1) Had the Adviser, Distributor, and administrator not reduced or waived
certain expenses, total returns would have been lower.
(2) Not annualized.
(3) Annualized.
37
<PAGE> 40
The following additional information regarding LEADER Mutual Funds (formerly
"Magna Funds") is available to you upon request and without charge.
ANNUAL/SEMI-ANNUAL REPORTS (REPORTS):
The Funds' Reports to shareholders contain additional information regarding the
Funds' investments. In the Annual Report, you will find a discussion of the
market conditions and investment strategies that significantly affected the
Funds' performance during their last fiscal year.
STATEMENT OF ADDITIONAL INFORMATION (SAI):
The SAI provides more detailed information about the Funds, including their
operations and investment policies. It is incorporated by reference and is
legally considered to be part of this prospectus.
You can get free copies of the Reports and the SAI, or request other information
and discuss your questions about the Funds by contacting a broker or other
financial institution that sells shares of the Funds, or by contacting the Funds
directly at:
LEADER MUTUAL FUNDS
P.O. BOX 182754
COLUMBUS, OHIO 43218-2784
TELEPHONE: 1-800-219-4182
You can review the Reports and the SAI at the Public Reference Room of the
Securities and Exchange Commission (the "SEC") in Washington, D.C. You can get
copies:
- For a duplicating fee, by writing the Public Reference Section of the SEC,
Washington, D.C. 20549-0102, by calling the SEC at 1-202-942-8090, or by
electronic request at the following e-mail address: [email protected].
- At no charge from the SEC's Website at http://www.sec.gov.
Investment Company Act file no. 811-8494
