Filing pursuant to Rule 497(e)
for The Hirtle Callaghan Trust
1933 Act File No. 33-87762
1940 Act File No. 811-8918
THE HIRTLE CALLAGHAN TRUST
Supplement to Prospectus of September 15, 1997; the date of this Supplement
is January 13, 1998for The Hirtle Callaghan Trust
The Growth Equity Portfolio: Investment Advisory Arrangements
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Goldman Sachs Asset Management ("GSAM") serves as Investment Manager for the
Growth Equity Portfolio. For its services to the Portfolio, GSAM currently
receives a fee of 0.30%. 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. 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 an officer and investment professional with GSAM since 1989. Mr. Pinter
and Mr. Clarke, each of whom is a Vice President of GSAM, joined GSAM in 1990
and 1992, respectively.
The Trust has 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, the GSAM Agreement would permit GSAM to be
compensated on a performance fee basis. In addition, the
Performance Fee Amendment will not take effect unless and until certain relief
is obtained from the SEC from certain rules adopted by the SEC. The relief
sought would permit the proposed performance compensation to be based on the
gross performance of that portion of the Portfolio's assets assigned by the
Board to GSAM. There can be no assurance that the SEC will grant such relief.
If the Performance Fee Amendment is implemented, it could, under certain
circumstances, increase or decrease the fee paid to GSAM, when compared to the
current fixed fee arrangement and could result in the payment of incentive
compensation during periods of declining markets. Further information about
the Performance Fee Amendment appears in the Statement of Additional
Information.
The Growth Equity Portfolio: Investment Practices
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The Growth Equity Portfolio may also invest in certain instruments known
as Standard & Poor's Depositary Receipts or "SPDRs" as part of its overall
hedging strategies. Such strategies are designed to reduce certain risks
that would otherwise be associated with the investments in the types
of securities in which the Portfolio invests and/or in anticipation of
future purchases, including to achieve market exposure pending investment,
provided that the use of such strategies are not for speculative purposes
and are otherwise consistent with the investment policies and restrictions
adopted by the Portfolio.
The Value Equity Portfolio: Investment Advisory Arrangements
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Pursuant to an amendment to the Portfolio Management Agreements
between the Trust and Institutional Capital Corporation ("ICAP"), which
amendment was also approved by shareholders of The Value Equity Portfolio
at a special meeting held on January 12, 1998, the fee payable to ICAP
by The Value Equity Portfolio will be increased from .30% of the
average net assets of that portion of the Portfolio managed by ICAP
to .35% of such assets. Such increase shall be come effective on
February 2, 1998.
Administration, Distribution and Related Services
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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.
