File No. 33-87762
File No. 811-08918
JULY 23, 1999
SUPPLEMENT TO PROSPECTUS
DATED NOVEMBER 1, 1999, FOR
THE HIRTLE CALLAGHAN TRUST
The Hirtle Callaghan Trust ("Trust"), is a diversified, open-end management
investment company. The principal offices of the Trust. are located at 100 Four
Falls Corporate Center, Suite 500, West Conshohocken, PA ,19428-2970.
Except for The International Equity Portfolio ("International Portfolio"), each
of the Trust's equity oriented investment portfolios has, since the inception of
the Trust, retained two separate portfolio management firms to make investment
decisions on its behalf. Although the investment managers for each of these
"dual manager portfolios" are required to adhere to the investment objectives,
policies and restrictions of the portfolios they serve, each firm is expected to
do so in the context of its particular investment management style.
At their meeting held on July 23, 1999, shareholders of the International
Portfolio approved the engagement of Artisan Partners Limited Partnership
("Artisan") to serve as a second Investment Manager for the International
Portfolio pursuant to the terms of a portfolio management contract ("Artisan
Agreement"). The terms and conditions of the Artisan Agreement are substantially
the same as those included in the agreement between the International Portfolio
and Brinson Partners, Inc., ("Brinson"), the firm that has served as the sole
Investment Manager for the International Portfolio since the inception of the
Trust.. However, the asset-based fee payable under the portfolio managerment
agreement with Brinson is calculated at a rate of .40% of 1% on assets of $200
million or less, with reductions (often called "break points") in the applicable
rate at higher asset levels. The Artisan Agreement provides for an advisory fee
of .40% of 1% of the Portfolio's assets assigned to Artisan, but does not
include fee reductions at higher asset levels.
At the shareholders meeting, an amendment to the Artisan Agreement ("Performance
Fee Amendment") was also approved. The Performance Fee Amendment will not take
effect unless and until certain relief is obtained from the Securities and
Exchange Commission ("SEC"). The relief sought would permit the proposed
performance compensation to be based on the gross performance of that portion of
the International Portfolio's assets allocated by the Board to Artisan. There
can be no assurance that the SEC will grant such relief.
Under the Performance Fee Amendment, Artisan would be compensated based, in
part, on the investment results achieved by it and would receive a fee, payable
quarterly, at the annual rate of .40% 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
Artisan over the total return of the Morgan Stanley Capital International
European, Australia and Far East Index ("Index") during the 12 months
immediately preceding the calculation date. Artisan's total compensation under
the Performance Fee Agreement would not exceed 80 basis points with respect to
any 12 month period. This maximum fee level would be attained only to the extent
that the Artisan Account outperforms the EAFE Index by a factor of at least 200
basis points. Artisan's annual fee may, however, fall to zero if Artisan
underperforms the Index by 120 basis points or more. Investors in the
International Portfolio should be aware that one consequence of the Performance
Fee Amendment is that Artisan could earn a positive performance adjustment in
declining markets provided that the decline in returns achieved by Artisan is
less than the corresponding decline in returns in the Index.
Information About Artisan. Artisan is located at 1000 N. Water Street, Suite
1770, Milwaukee, Wisconsin 53202. Artisan also maintains offices at 100 Pine
Street, Suite 2950, San Francisco, California and Five Concourse Parkway, Suite
2120, Atlanta, Georgia. As of April 30, 1999, Artisan managed total assets in
excess of $ 1.7 billion. The principal executive officer of Artisan is Andrew A.
Ziegler, whose principal occupation is the management of Artisan and Artisan's
sole general partner, Artisan Investment Corporation. Mr. Ziegler and Carlene
Murphy Ziegler control Artisan Investment Corporation, which is organized as a
Wisconsin corporation. A team of investment professionals, lead by Mr. Mark L.
Yockey, an Artisan partner, will be responsible for making day-to-day investment
decisions for that portion of the International Portfolio allocated to Artisan.
Mr. Yockey has been with Artisan since 1995 and currently serves as a vice
president of Artisan Funds, Inc., an open-end, series management investment
company registered under the Investment Company Act. Before joining Artisan, Mr.
Yockey was portfolio manager of United International Growth Fund and Vice
President of Waddell & Reed, Inc., an investment adviser and mutual fund
organization located in Missouri. Mr. Yockey holds BA and MBA degrees from
Michigan State University and is a Chartered Financial Analyst.
