SUPPLEMENT DATED FEBRUARY 29, 1996 TO THE PROSPECTUS
Prospectus Dated July 25, 1995
(as supplemented November 24, 1995)
PILGRIM AMERICA MASTERS SERIES, INC.
The prospectus is hereby supplemented by adding the following language after the
section entitled "Summary of Expenses:"
The following information has been derived from the Financial Highlights in the
Funds' unaudited semi-annual report. The financial statements in the semi-annual
report are incorporated by reference in the Statement of Additional Information.
This information should be read in conjunction with the financial statements,
and notes thereto, in the Funds' semi-annual report. The Statement of Additional
Information has been incorporated by reference into this prospectus.
<PAGE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding for the period
September 1, 1995* Through December 31, 1995
ASIA-PACIFIC EQUITY FUND
CLASS A CLASS B CLASS M
PER SHARE OPERATING
PERFORMANCE
Net asset value, beginning
of period.................... $10.00 $10.00 $10.00
Income (loss) from
investment operations:
Net investment income (loss). 0.01 0.00 0.00
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions.............. (0.13) (0.14) (0.13)
------ ------ ------
Total from investment
operations..... (0.12) (0.14) (0.13)
------ ------ ------
Net asset value, end of period. $ 9.88 $ 9.86 $ 9.87
====== ====== ======
TOTAL RETURN(b)................ (1.20)% (1.40)% (1.30%)
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands).............. $3,877 $1,928 $985
Ratios to average net assets:
Expenses(a)(c)........... 2.00% 2.75% 2.50%
Net investment
income (loss)(a)(c). 0.50% (0.32)% (0.07)%
Portfolio turnover rate........ 10% 10% 10%
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MIDCAP VALUE FUND
CLASS A CLASS B CLASS M
PER SHARE OPERATING
PERFORMANCE
Net asset value, beginning
of period................... $10.00 $10.00 $10.00
Income (loss) from
investment operations:
Net investment income (loss). 0.00 (0.02) (0.01)
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions.............. 0.36 0.35 0.34
---- ---- ----
Total from investment
operations............. 0.36 0.33 0.33
---- ---- ----
Net asset value, end of period. $10.36 $10.33 $10.33
====== ====== ======
TOTAL RETURN(b)................ 3.60% 3.30% 3.30%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands)............... $943 $444 $164
Ratios to average net assets:
Expenses(a)(c)............... 1.75% 2.50% 2.25%
Net investment
income (loss)(a)(c)........ (0.08)% (0.92)% (0.41)%
Portfolio turnover rate........ 7% 7% 7%
<PAGE>
LARGECAP VALUE FUND
CLASS A CLASS B CLASS M
PER SHARE OPERATING
PERFORMANCE
Net asset value, beginning
of period................... $10.00 $10.00 $10.00
Income (loss) from
investment operations:
Net investment income (loss). 0.03 0.00 0.00
Net realized and unrealized
gain (loss) on investments
and foreign currency
transactions............... 0.71 0.72 0.72
---- ---- ----
Total from investment
operations.............. 0.74 0.72 0.72
---- ---- ----
Net asset value, end of period. $10.74 $10.72 $10.72
====== ====== ======
TOTAL RETURN(b)................ 7.40% 7.20% 7.20%
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(in thousands)............... $1,367 $202 $280
Ratios to average net assets:
Expenses(a)(c)............... 1.75% 2.50% 2.25%
Net investment
income (loss)(a)(c)....... 0.89% (0.33)% 0.22%
Portfolio turnover rate........ 28% 28% 28%
- --------------------
* Commencement of operations.
(a) Annualized.
(b) Total return is calculated assuming reinvestment of all dividends and
capital gain distributions at net asset value and excluding the deduction
of sales charges. Total return information for less than one year is not
annualized.
(c) Prior to the waiver of expenses, the ratio of expenses to average net
assets was 4.45%, 5.36% and 5.06% for Asia- Pacific Equity Fund Class A,
B and M, respectively; 7.61%, 8.56% and 8.43% for MidCap Value Fund Class
A, B and M, respectively; and 6.89%, 7.86% and 7.67% for LargeCap Value
Fund Class A, B and M, respectively. Prior to the waiver of expenses, the
ratio of net investment income to average net assets was (1.95)%, (2.93)%
and (2.63)% for Asia-Pacific Equity Fund Class A, B and M, respectively;
(5.94)%, (6.98)% and (6.59)% for MidCap Value Fund Class A, B and M,
respectively; and (4.25)%, (5.69)% and (5.20)% for LargeCap Value Fund
Class A, B and M, respectively.
<PAGE>
The prospectus is further amended by deleting the chart in the section entitled
"Past Performance of the Portfolio Managers" and replacing it with the following
chart:
HSBC ASIA-PACIFIC ADVISORY ACCOUNTS WITH SIMILAR POLICIES
Growth of an initial investment of $10,000, with reinvestment (1)
[The following table replaces a graph showing growth of an initial investment of
$10,000, with reinvestment (see footnote 1), in both the HSBC Asia-Pacific
Composite and the MSCI Far East ex Japan (Free) Index.]
MSCI Far
HSBC Asia-Pacific East ex Japan
COMPOSITE (FREE) INDEX
12/31/87 $ 10,000 $ 10,000
12/31/88 14,392 13,000
12/31/89 22,144 17,177
12/31/90 18,905 16,053
12/31/91 23,268 21,026
12/31/92 27,187 25,612
12/31/93 53,756 52,092
12/31/94 42,605 42,984
12/31/95 47,875 46,787
AVERAGE ANNUALIZED NCEPTION
RETURNS ENDED ONE THREE FIVE DATE OF TEN
12/31/95: YEAR YEARS YEARS INDEX (3) YEARS
HSBC Asia-Pacific
Composite (2) 12.37% 20.76% 20.42% 21.62% 21.87%
MSCI Far East ex
Japan (Free)
Index 8.84% 22.24% 23.85% 21.28% n/a (3)
(1) The line graph shows the value of $10,000 invested on January 1, 1988
(the first year of the MSCI Far East ex Japan (Free) Index), and held
through December 31, 1995, compared to the MSCI Far East ex Japan (Free)
Index.
<PAGE>
(2) Represents the composite returns of the accounts managed by HSBC with
substantially similar investment objectives, policies, styles, and
strategies as the Asia-Pacific Equity Fund, as adjusted for Total Fund
Operating Expenses for Class A shares, shown on page 3 of the prospectus.
(3) The unmanaged MSCI Far East ex Japan (Free) Index was created in January,
1988, and thus is not available for a ten year comparison.
<PAGE>
The prospectus is further amended by deleting this chart in the section entitled
"Past Performance of Portfolio Managers" and replacing it with the following
chart:
ARK LARGECAP VALUE ADVISORY ACCOUNTS WITH SIMILAR POLICIES
Growth of an initial investment of $10,000, with reinvestment (1)
[The following table replaces a graph showing growth of an initial investment of
$10,000, with reinvestment (see footnote 1), in both the Ark LargeCap Value
Composite and the Standard & Poor's 500 Index.]
Ark LargeCap Value Standard & Poor's
COMPOSITE 500 INDEX
12/31/85 $ 10,000 $ 10,000
12/31/86 11,946 11,821
12/31/87 12,557 12,433
12/31/88 14,947 14,485
12/31/89 18,425 19,038
12/31/90 18,446 18,430
12/31/91 21,532 24,059
12/31/92 25,015 25,907
12/31/93 28,878 28,498
12/31/94 29,174 28,876
12/31/95 39,756 39,728
AVERAGE ANNUALIZED
RETURNS ENDED ONE THREE FIVE TEN
12/31/95: YEAR YEARS YEARS YEARS
Ark LargeCap Value
Composite (2) 36.27% 16.70% 16.60% 14.80%
Standard & Poor's 500
Index 37.58% 15.33% 16.59% 14.79%
(1) The line graph shows the value of $10,000 invested on December 31, 1985,
and held through December 31, 1995 compared to the unmanaged Standard &
Poor's 500 Index.
<PAGE>
(2) Represents the composite returns of the accounts managed by Ark with
substantially similar investment objectives, policies, styles, and
strategies as the LargeCap Value Fund, as adjusted for Total Fund
Operating Expenses for Class A shares, shown on page 3 of the prospectus.
<PAGE>
The prospectus is further amended by deleting the chart in the
section entitled "Past Performance of the Portfolio Managers" and
replacing it with the following chart: (1)
CRM MIDCAP VALUE ADVISORY ACCOUNTS WITH SIMILAR POLICIES
Growth of an initial investment of $10,000, with reinvestment (2)
[The following table replaces a graph showing growth of an initial investment of
$10,000, with reinvestment (see footnote 1), in both the CRM MidCap Value
Composite and the Russell MidCap (tm) Index.]
CRM MidCap Value Russell MidCap
COMPOSITE (TM) INDEX
12/31/85 $ 10,000 $ 10,000
12/31/86 11,436 11,820
12/31/87 10,985 11,847
12/31/88 14,304 14,193
12/31/89 17,962 17,922
12/31/90 15,363 15,862
12/31/91 20,630 22,446
12/31/92 24,764 26,114
12/31/93 30,706 29,849
12/31/94 30,005 29,224
12/31/95 36,894 39,291
AVERAGE ANNUALIZED
RETURNS ENDED ONE THREE FIVE TEN
12/31/95: YEAR YEARS YEARS YEARS
CRM MidCap Value
Composite (2) 22.96% 14.21% 19.15% 13.94%
Russell MidCap (tm)
Index 34.45% 14.59% 19.89% 14.66%
(1) The balance as of September 30, 1995 as shown on page 9 of the prospectus
for CRM MidCap Value Advisory Accounts should be $40,321 instead of
$42,871.
<PAGE>
(2) The line graph shows the value of $10,000 invested on December 31, 1985,
and held through December 31, 1995 compared to the unmanaged Russell
MidCap (tm) Index.
(3) Represents the composite returns of the accounts managed by CRM with
substantially similar investment objectives, policies, styles, and
strategies as the MidCap Value Fund, as adjusted for Total Fund Operating
Expenses for Class A shares, shown on page 3 of the prospectus.
