Filing pursuant to Rule 497(d)
for The Hirtle Callaghan Trust
1933 Act File No. 33-87762
1940 Act File No. 811-8918
The Hirtle Callahgan Trust
575 E. Swedesford Road
Wayne, PA 19087
Supplement to
Prospectus dated May 20, 1996 of
The Hirtle Callaghan Trust
INVESTMENT MANAGERS.
(a) The last sentence that appears on page 4 of the prospectus under the
heading "The Value Equity Portfolio" is deleted and replaced by the
following:
"Hotchkis and Wiley and Institutional Capital Corporation currently
serve as Investment Managers for The Value Equity Portfolio."
(b) The paragraph relating to Cowen Asset Management that appears under the
heading "Investment Managers" on page 12 of the prospectus is deleted and
replaced by the following:
Hotchkis and Wiley ("Hotchkis") serves as Investment Manager for The
Value Equity Portfolio. For its services to the Portfolio, Hotchkis
receives a fee, based on the average daily net asset value of that
portion of the Portfolio's assets managed by it, at an annual rate of
0.30%. Hotchkis, the principal offices of which are located at 800
West Sixth Street, Los Angeles, California, 90017, and its predecessor
entities have provided investment management services for equity assets
since 1980. Sheldon Lieberman will be responsible for making
day-to-day investment decisions for that portion of The Value Equity
Portfolio allocated to Hotchkis and Wiley. Before joining Hotchkis and
Wiley in 1994, Mr. Lieberman was the Chief Investment Officer for the
Los Angeles County Employees Retirement Association. Prior to that, he
was Manager of Trust Investments at Lockheed Corporation. As of
September 30, 1996, Hotchkis managed total assets of approximately $9.8
billion, of which approximately $1.4 billion represent assets of mutual
funds. Hotchkis, a division of Merrill Lynch Asset Management LP, is
controlled by Merrill Lynch & Co., Inc.
ADMINISTRATION AND OTHER SERVICES. The following is added to the paragraph
that appears under the heading "Administration, Distribution and Related
Services" on page 13 of the prospectus:
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On or before 1, 1996, and following the acquisition of Furman's mutual fund
business by The BISYS Group, Inc., it is anticipated that all such services
will be provided to the Trust by BISYS Fund Services, Inc. and/or its
affiliated companies. Such services will be provided pursuant to separate
contracts, the material terms of which (including fees to be paid by the
Trust) are the same as those that apply to the Furman service
relationships. BISYS is located at 3435 Stelzer Road, Columbus, Ohio
43219.
<PAGE>
EXPENSES. The following table of annual operating expenses replaces the
corresponding table that appears on page 2 of the prospectus. This table
is designed to assist investors in understanding expenses borne by
investors as shareholder of the Trust, either directly or indirectly.:
Table 2:Annual Operating Expenses (as a percentage of average net assets) *
-------------------------------------------------------------------------
Portfolio Value Growth Small Cap International Limited Duration
Equity Equity Equity Equity Municipal Bond
Management 0.35% 0.35% 0.50% 0.45% 0.25%
Fees
Other Expenses** 0.28% 0.28% 0.28% 0.36% 0.28%
(after waivers)
Total Portfolio 0.63% 0.63% 0.78% 0.81% 0.53%
Operating Expenses
(after waivers)
*Figures shown reflect expenses incurred during the fiscal year ended June
30, 1996.
** The caption "Other Expenses" does not include extraordinary expenses as
determined by the use of generally accepted accounting principles. Amounts
shown reflect certain waivers and fee reimbursements by certain of the
Trust's service providers. Without these waivers, the expenses that appear
under the caption "Other Expenses" would be .33% for The Value Equity and
Growth Equity Portfolios, .40% for The Small Capitalization Equity
Portfolio, .47% for The International Equity Portfolio and .56% for The
Limited Duration Municipal Bond Portfolio. Similarly, the amounts shown
under the caption "Total Portfolio Operating Expenses," absent such waivers
and fee reimbursements, would be: for The Value Equity, .68%; for The
Growth Equity Portfolio, .68%; for The Small Capitalization Equity
Portfolio, .90% for The International Equity Portfolio and .92% for The
Limited Duration Municipal Bond Portfolio, .81%.
<PAGE>
<PAGE>
(4) FINANCIAL HIGHLIGHTS. The following table provides information about each
of the Trust's portfolios, for the period shown, based on a single share
outstanding throughout the period. The table is part of the Trust's financial
statements, which are included in the Trust's Statement of Additional
Information and which were audited by Coopers & Lybrand, L.L.P., the Trust's
independent accountants, whose unqualified report thereon appears in the
Statement of Additional Information. The Statement of Additional Information
is available to shareholders upon request.
<TABLE>
<CAPTION>
VALUE GROWTH SMALL CAPITALIZATION INTERNATIONAL LIMITED DURATION
AUGUST 25, 1995 AUGUST 8, 1995 SEPTEMBER 5, 1995 AUGUST 17, 1995 OCTOBER 10, 1995
(COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT (COMMENCEMENT
OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS) OF OPERATIONS)
THROUGH THROUGH THROUGH THROUGH THROUGH
JUNE 30, 1996 JUNE 30, 1996 JUNE 30, 1996 JUNE 30, 1996 JUNE 30, 1996
--------------- -------------- -------------------- --------------- ----------------
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period................. $ 10.00 $ 10.00 $ 10.00 $ 10.00 $ 10.00
------- -------- ------- ------- -------
Income from Investment
Operations:
Net investment income..... 0.22 0.04 0.10 0.16 0.35
Net realized and
unrealized gain on
investments and foreign
currency transactions.... 1.51 1.13 1.07 1.35 0.01
------- -------- ------- ------- -------
Total from investment
operations............... 1.73 1.17 1.17 1.51 0.36
------- -------- ------- ------- -------
Less Distributions:
From net investment
income................... (0.22) (0.04) (0.10) (0.24) (0.36)
From realized gains...... (0.03) 0.00 0.00 (0.01) 0.00
------- -------- ------- ------- -------
Total distributions....... (0.25) (0.04) (0.10) (0.25) (0.36)
------- -------- ------- ------- -------
Net Asset Value, End of
Period.................... $ 11.48 $ 11.13 $ 11.07 $ 11.26 $ 10.00
======= ======== ======= ======= =======
Total Return............... 17.28% 11.69% 11.82% 15.15% 3.60%
Net Assets End of Period
(in thousands)........... $71,503 $110,537 $61,503 $77,732 $29,485
Ratios to Average Net
Assets of:
Net investment income*.... 2.55% 0.46% 1.33% 1.75% 4.78%
Expenses net of
waivers/reimbursements*.. 0.63% 0.63% 0.78% 0.81% 0.53%
Expenses before
waivers/reimbursements*.. 0.68% 0.68% 0.90% 0.92% 0.81%
Portfolio Turnover Rate.... 92% 80% 38% 15% 116%
</TABLE>
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* Annualized.
The date of this Supplement is November 20, 1996
<PAGE>
CROSS REFERENCE SHEET
(Required by Rule 481(a) under the Securities Act of 1933)
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Part A -- Information required in a Prospectus Prospectus Heading
------------------------------------ ------------------
Item 1. Cover Page Cover Page
Item 2. Synopsis Expense Information; Prospectus Supplement
Item 3. Condensed Financial Information Financial Highlights; Prospectus Supplement
Item 4. General Description of Registrant Cover Page;
Management of the
Trust; General
Item 5. Management of the Fund Management of the
Trust; Prospectus Supplement
Item 6. Capital Stock and other Securities General
Item 7. Purchase of Securities Being Offered Purchases and Redemptions
Item 8. Redemption or Repurchase Purchases and Redemptions
Item 9. Legal Proceedings Not Applicable
Part B -- Information required in a Statement Statement of Additional
of Additional Information Heading
-------------------------------------------
Item 10. Cover Page Cover Page
Item 11. Table of Contents Cover Page
Item 12. General Information and History Cover Page; Management of
the Trust
Item 13. Investment Objectives and Policies Further Information on
Investment Policies;
Hedging through the use
of Options; Hedging
through the use of Futures
Contracts; Hedging
through the use of
Currency-related
Instruments; Investment
Restrictions
Item 14. Management of the Registrant Management of the Trust; Supplement
Item 15. Control Persons and Principal Management of the Trust
Holders of Securities
</TABLE>
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<TABLE>
<S> <C>
Item 16. Investment Advisory and Other Management of the Trust; Supplement
Services
Item 17. Brokerage Allocation Portfolio Transactions and
Valuation; Supplement
Item 18. Capital Stock and Other Securities General (in Prospectus)
Item 19. Purchase, Redemption and Pricing of Additional Purchase and
Securities Being Offered Redemption Information;
Portfolio Transactions
and Valuation
Item 20. Tax Status Dividends, Distributions
and Taxes
Item 21. Underwriters Management of the Trust; Supplement
Item 22. Calculation of Performance Date Not Applicable
Item 23. Financial Statements Independent Accountants
and Financial Statements; Supplement
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