Prospectus Supplement
THE HIRTLE CALLAGHAN TRUST
File No. 33-87762
File No. 811-08918
Supplement to Prospectus
dated September 15, 1997, for
The Hirtle Callaghan Trust
Investment Advisory Arrangements. Pursuant to the terms of an Investment
Management Agreement ("GSAM Agreement") approved by the by the Board of
Trustees ("Board") at its meeting held on September 12, 1997, Goldman Sachs
Asset Management ("GSAM") will commence serving as an Investment Manager for
The Growth Equity Portfolio on or about September 18, 1997. On the same date,
Westfield Capital Management Corp. will cease providing investment advisory
services to the Portfolio. For its services under the GSAM Agreement, GSAM
will receive 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%. The GSAM
Agreement is subject to approval by the shareholders of The Growth Equity
Portfolio, which approval must be obtained within 120 days of the effective
date of the GSAM Agreement.
At its meeting held on September 12, 1997, the Board also conditionally
approved an amendment to the GSAM Agreement ("Performance Fee Amendment").
Under the Performance Fee Amendment, GSAM would be compensated based, in part,
on the investment results achieved by it. Under the amendment, Portfolio
Manager will receive a fee, payable quarterly, at the annual rate of .30% of
the average daily net asset value of the Account, ("Base Fee"). After an
initial one year period, the Base Fee would be increased or decreased at an
annual rate of 25% of the net value added by GSAM over the total return of the
Russell 1000 Growth Index during the 12 months immediately preceding the
calculation date. GSAM's total compensation under the Amended Agreement would
not exceed 50 basis points with respect to any 12 month period; the minimum
annual fee that would be payable to GSAM under the amended agreement is 10
basis points. The Performance Fee Amendment will not become effective unless
such amendment is approved by the shareholders of The Growth Equity Portfolio.
In addition, the Performance Fee Amendment will not take effect unless GSAM is
successful in obtaining from the Securities and Exchange Commission ("SEC")
relief from certain rules adopted by the SEC. The relief sought would permit
the proposed performance compensation to be based solely on the performance of
that portion of the Portfolio's assets assigned by the Board to GSAM and not on
the performance of the Portfolio as a whole. There can be no assurance that
the SEC will grant such relief.
It is currently anticipated that a meeting of the Portfolio's shareholders will
be held for the purpose of considering the GSAM Agreement and the Performance
Fee Amendment on or before December 31, 1997.
As of August 31, 1997, GSAM, together with its affiliates, managed total assets
of in excess of $124.1 billion. Robert C. Jones, Victor Pinter and Kent Clark
will be responsible for making day-to-day investment decisions for that portion
of The Growth Equity Portfolio allocated to GSAM. Mr. Jones, a chartered
financial analyst and Managing Director of GSAM has been a officer and
investment professional with GSAM since 1989. Mr. Pinter, Vice President
joined GSAM in 1990. Mr. Clarke, a Vice President of GSAM, joined the firm in
1992; prior to 1992, he was studying for a Ph.D. in finance at the University
of Chicago. GSAM, the principal offices of which are located at One New York
Plaza, New York, New York, 10004, is a separate operating division of Goldman,
Sachs & Co.
Administration, Distribution and Related Services. At its meeting held on
September 12, 1997, the Board also approved amendments to those agreements
pursuant to which BISYS Fund Services, Inc. and certain of its affiliated
companies ("BISYS") provide administration, transfer agency, accounting and
distribution services to the Trust. At present, BISYS is compensated for its
services under those agreements based on separate fee schedules. Effective
October 1, 1997, the Trust will be provided with administration, transfer
agency and fund accounting services for an all-inclusive fee payable.
("Omnibus Fee"). The Omnibus Fee is to be computed daily and paid monthly in
arrears, at an annual rate of .10% of the aggregate average daily net assets of
the Value Equity, Growth Equity, Small Capitalization Equity and International
Equity Portfolios and of any additional portfolios that invest primarily in
equity securities that may be created by the Trust in the future, and .08% of
the aggregate average daily net assets of the Limited Duration Municipal Bond
Portfolio and of any additional portfolios that invest primarily in debt
securities that may be created in the future by the Trust.
The date of this Supplement is September 16, 1996
