<PAGE> 1
TIME HORIZON FUNDS
SUPPLEMENT TO PROSPECTUS
DATED
NOVEMBER 1, 1996
Effective June 16, 1997, Class A shares of each Fund of the Company will be sold
at net asset value without an initial sales load. INVESTORS SHOULD NOTE THAT
CLASS B AND CLASS K SHARES ENTAIL HIGHER EXPENSES AND THAT IN ADDITION, CLASS B
SHARES ENTAIL A CONTINGENT DEFERRED SALES CHARGE. THEREFORE, INVESTORS SHOULD
PURCHASE CLASS B SHARES OR CLASS K SHARES ONLY IF THEY DESIRE THE ADDITIONAL
SERVICES PROVIDED THROUGH SUCH SHARES. Existing Class B shareholders are
eligible to purchase Class A Shares. Such Class B shareholders wishing to
purchase Class A shares are required to complete a new account application
(see "How to Buy Shares").
Under the heading Expense Summary, the information as to Class A shares
regarding shareholder transaction expenses and the example of expenses are
amended as follows:
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES
(applicable to all Funds) CLASS A
-------
<S> <C> <C> <C>
Maximum Sales Load Imposed on Purchases (as a percentage of offering price)........ None
Sales Load Imposed on Reinvested Dividends......................................... None
Maximum Contingent Deferred Sales Load............................................. None(1)
Redemption Fee..................................................................... None
Exchange Fee....................................................................... None
</TABLE>
-----------------------
(1) Unless you participated in the Bank of America's Daily Advantage(R)
or Advantage Plus(TM) programs, Class A Shares previously purchased
under the Large Purchase Exemption are subject to a contingent
deferred sales charge of 1.00% and 0.50%, respectively, on
redemptions within one and two years after purchase.
- -------------------------------------------------------------------------------
EXAMPLE: Assume the annual return is 5% and operating expenses are the same as
those stated above. For every $1,000 you invest in a Fund, for example, here's
how much you would have paid in total expenses if you closed your account after
the number of years indicated.
<TABLE>
<CAPTION>
AFTER 1 YEAR AFTER 3 YEARS AFTER 5 YEARS AFTER 10 YEARS
------------ ------------- ------------- --------------
<S> <C> <C> <C> <C>
Class A shares.......................................... $ 12 $38 $66 $145
</TABLE>
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As a result of the elimination of the front-end sales load, there will be no
dealer's reallowance and all disclosure regarding exemptions from the front-end
sales load (such as the large purchase exemption, rights of accumulation and
letter of intent) is no longer applicable.
The disclosure on page 17 of the Prospectus is amended to include eligible
deferred compensation plans under Section 457 of the Internal Revenue Code of
1986, as amended, and certain other retirement plans as eligible purchasers of
Class K shares.
Supplement dated June 16, 1997.
TMH-0055
