THE DATE OF THIS SUPPLEMENT IS APRIL 7, 1999
THE HIRTLE CALLAGHAN TRUST
Supplement to the Prospectus
dated November 1, 1998
The Value Equity Portfolio (see Prospectus page 6)
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At a Special Meeting of the Board of Trustees ("Board") held on March 2, 1999,
the Board approved the engagement of Geewax, Terker & Co. ("Geewax") to serve as
an Investment Manager for The Value Equity Portfolio. Geewax will replace
Hotchkis & Wiley ("Prior Manager"), which organization currently serves as a
manager of that Portfolio. Geewax will serve pursuant to the terms of a
portfolio management agreement ("Geewax Agreement"), which is substantially the
same as the corresponding agreement between the Trust and the Prior Manager and
will be compensated for its services at the same rate as the Prior Manager.
Geewax is expected to assume its portfolio management responsibilities on March
8, 1999. Geewax currently also serves as an Investment Manager for The Small
Capitalization Equity Portfolio.
Shareholders of The Value Equity Portfolio will be asked to approve the Geewax
Agreement at a Special Meeting of Shareholders of that Portfolio to be held on
or before June 15, 1999. Under the Investment Company Act of 1940 ("Investment
Company Act") if shareholder approval of the Geewax Agreement is not obtained
within 120 days of the date on which the Geewax Agreement becomes effective, the
Geewax Agreement will terminate. If the Geewax Agreement is approved by the
shareholders of The Value Equity Portfolio, however, the Geewax Agreement will
remain in effect for two years from its effective date. The Geewax Agreement
will continue in effect from year to year thereafter in accordance with its
terms for so long as it is approved annually by the Trusts Board of Trustees.
Geewax is a Pennsylvania general partnership whose general partners are John J.
Geewax and Bruce Terker. The firm's principal offices are located at 99 Starr
Street, Phoenixville, Pennsylvania 19460. As of February 26, 1999, Geewax,
managed total assets of approximately $4.8 billion, of which $329 million are
assets of registered investment companies. Such investment companies invest
primarily in equity securities but have investment policies and strategies that
may be different from those of The Value Equity Portfolio. John Geewax will be
primarily responsible for providing day-to-day investment decisions for the
Geewax Account. Mr. Geewax has been a general partner of Geewax, Terker & Co.,
since its founding in 1982.
About Municipal Securities (see Prospectus page 14)
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The Municipal Portfolios and The Fixed Income Portfolio are subject to certain
restrictions on the extent that each may invest in the securities of a single
issuer or a single industry. For purposes of complying with these restrictions,
these Portfolios will treat as the issuer of any Municipal Security the entity
whose assets and revenues are being relied upon by purchasers of such Municipal
Securities for the timely payment of interest and principal. Under certain
circumstances, Municipal Securities that are supported or guaranteed by agencies
of the U.S. Government, or collateralized by U.S. Government Securities may be
treated as U.S. Government Securities for the purpose of complying with the
diversification or concentration requirements to which these Portfolios are
subject. Further information about these requirements appears in the Statement
of Additional Information under the headings "Management of the Trust" and
"Investment Restrictions."
About Other Permitted Investments (see Prospectus page 17)
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Each of the portfolios of the Trust may acquire securities issued by other
investment companies to the extent permitted under the Investment Company Act,
provided that such investments are otherwise consistent with the overall
investment objectives and policies of that portfolio. Investment company
securities include interests in unit investment trusts structured to reflect a
specified index, such as the Standard & Poor's 500 Composite Stock Price Index
Depositary Receipts ("SPDRs") or the Standard & Poor's Mid-Cap 400 Index
Depositary Receipts ("MidCap SPDRs"). SPDRs and MidCap SPDRs may be obtained
from the issuing unit investment trust or purchased in the secondary market.
Because the market value of these instruments is derived from the value of the
equity securities held by the issuing unit investment trust, these instruments
may be used by an Investment Manager to achieve market exposure pending
investment. Both SPDRs and MidCap SPDRs are listed on the American Stock
Exchange. Further information about these instruments is contained in the
Statement of Additional Information. Generally, the Investment Company Act
limits investments in instruments such as SPDRs or MidCap SPDRs to 5% of a
portfolio's total assets. Provided certain requirements set forth in that Act
are met, however, investments in excess of 5% of a portfolio's assets may be
made.
Investment Managers: Jennison Associates LLC (see Prospectus page 19)
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Jennison Associates, LLC ("Jennison") serves as an Investment Manager of The
Growth Equity Portfolio. Spiros Segalas, is responsible for making day-to-day
investment decisions for that portion of The Growth Equity Portfolio allocated
to Jennison. Mr. Segalas is Jennison's Chief Investment Officer and President,
and has been with the firm for over 25 years.
