Advisor Class Shares

ACCESSOR^® FUNDS, INC. Prospectus April 30, 2001

Updated June 1, 2001

Equity Funds

Growth

Value

Small to Mid Cap

International Equity

Fixed-Income Funds

High Yield Bond

Intermediate Fixed-Income

Short-Intermediate Fixed-Income

Mortgage Securities

U.S. Government Money

The Securities and Exchange Commission has not approved or disapproved these securities or passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense.

	ADVISOR CLASS SHARES	December 17, 2001
SUPPLEMENT TO THE APRIL 30, 2001 PROSPECTUS Updated June 1, 2001
This supplement provides new and additional information beyond that contained in the prospectus, and should be read in conjunction with such prospectus. Capitalized terms not defined herein should have the meanings set forth in the prospectus.
ACCESSOR FUNDS, INC.

On December 7, 2001, the Board of Directors of Accessor Funds, Inc. (“Accessor Funds”) approved the replacement of Nicholas-Applegate Capital Management (“Nicholas-Applegate”) as money manager of the International Equity Fund. The Board of Directors, including all of the Directors who are not “interested persons” of Accessor Funds, have approved the appointment of JPMorgan Fleming Asset Management, Inc. (“JPMorgan Fleming”) as the money manager of the International Equity Fund, effective January 7, 2002. The appointment of JPMorgan Fleming will not require shareholder approval. This procedure for adding or replacing money managers was approved by the Portfolio’s shareholders at a Special Meeting of Shareholders held on August 15, 1995, and was authorized by an exemptive order issued to Accessor Funds by the Securities and Exchange Commission on September 4, 1996.

The Money Manager Agreement among Accessor Capital Management LP (“Accessor Capital”), Accessor Funds and JPMorgan Fleming relating to the International Equity Fund is substantially similar to that between Accessor Capital, Accessor Funds and Nicholas-Applegate. Specifically, the fees paid to JPMorgan Fleming are based on the same fee schedule as that of Nicholas-Applegate. The duties to be performed under this Money Manager Agreement are similar, and the standard of care and termination provisions of the agreement are identical to other Money Manager Agreements with other money managers of Accessor Funds. The Money Manager Agreement with Nicholas-Applegate will remain in effect until close of business on January 4, 2002. Beginning January 7, 2002, JPMorgan Fleming will make investment decisions for the assets of the International Equity Fund allocated to it by Accessor Capital, and continuously review, supervise, and administer the International Equity Fund’s investment program with respect to these assets. JPMorgan Fleming is independent of Accessor Capital and discharges its responsibilities subject to Accessor Capital’s and the Board of Directors’ supervision and in a manner consistent with the International Equity Fund’s investment objective, policies and limitations.

THE ACCESSOR FUNDS

A family of 15 mutual funds, each with two classes of shares. This Prospectus describes the Advisor Class Shares of nine of the Funds (each a "Fund"): Growth, Value, Small to Mid Cap, International Equity, High Yield Bond, Intermediate Fixed-Income, Short-Intermediate Fixed-Income, Mortgage Securities and U.S. Government Money Funds. For information about the other Accessor Funds, please request the current Prospectus.

A variety of equity, fixed-income and balanced mutual funds.

When used together, designed to help investors realize the benefits of asset allocation and diversification.

Managed and administered by Accessor Capital Management LP (“Accessor Capital”).

Sub-advised by Money Managers (“Money Managers”) who are selected and supervised by Accessor Capital (other than the U.S. Government Money Fund which is advised directly by Accessor Capital).

Diversificationis the spreading of risk among a group of investment assets. Within a portfolio of investments, it means reducing the risk of any individual security by holding securities of a variety of companies. In a broader context, diversification means investing among a variety of security types to reduce the importance of any one type or class of security.

Asset allocationis a logical extension of the principle of diversification. It is a method of mixing different types of investments (for example, stocks and bonds) in an effort to enhance returns and reduce risks.

Diversification and asset allocation do not, however, guarantee investment results.

TABLE OF CONTENTS

THE FUNDS

Fund Summaries.................................................................................... 1

Performance........................................................................................ 10

Equity Funds' Expenses.......................................................................... 14

Fixed-Income Funds' Expenses............................................................... 15

Equity Funds' Objectives and Strategies.................................................. 16

Equity Funds' Securities and Risks.......................................................... 18

Fixed-Income Funds' Objectives and Strategies........................................ 20

Fixed-Income Funds' Securities and Risks................................................ 23

Management, Organization and Capital Structure..................................... 26

SHAREHOLDER INFORMATION

Purchasing Fund Shares........................................................................ 34

Exchanging Fund Shares........................................................................ 36

Redeeming Fund Shares........................................................................ 37

Dividends and Distributions.................................................................... 38

Valuation of Securities........................................................................... 39

Taxation.............................................................................................. 39

Financial Highlights............................................................................... 40

APPENDIX A

Description of Fund Indices.................................................................... 49

GRAPHIC Growth Fund
Summary

Investment Objective The Growth Fund seeks capital growth through investing primarily in equity securities with greater than average growth characteristics selected from the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500”).

Principal Strategies The Fund invests primarily in stocks of companies chosen from the S&P 500 that Chicago Equity Partners LLC (“Chicago Equity Partners”), the Fund’s Money Manager, believes will outperform peer companies, while maintaining an overall risk level similar to that of the benchmark. The Money Manager attempts to exceed the performance of the S&P 500/BARRA Growth Index over a cycle of five years.

Chicago Equity Partners uses a disciplined structured investment approach and quantitative analytical techniques designed to identify stocks with the highest probability of outperforming their peers coupled with a portfolio construction process designed to keep the overall portfolio risk characteristics similar to that of the benchmark. Chicago Equity Partners seeks companies that generally have above-average growth and more attractive valuation characteristics than their peers. Chicago Equity Partners will sell a stock if it determines that the company’s growth potential is not met or if better opportunities are identified among its peers.

Principal Investment Risks Stock Market Volatility.Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments.

Company Risk.The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the market as a whole. Growth stocks are often more sensitive to economic and market swings than other types of stocks because market prices tend to reflect future expectations.

Sector Risk. Issuers within an industry or economic sector or geographic region can react differently to political or economic developments than the market as a whole. For instance, airline stocks may behave very differently than the market as a whole to a decline or increase in the price of oil.

An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. You could lose money by investing in the Fund.

GRAPHIC Value Fund

Summary

Investment Objective The Value Fund seeks generation of current income and capital growth by investing primarily in income- producing equity securities selected from the S&P 500.

Principal Strategies Wellington Management Company, LLP (“Wellington Management”) serves as the Fund’s Money Manager. As the Fund’s Money Manager, Wellington Management seeks to meet the Fund’s investment objective by investing primarily in stocks of companies chosen from the S&P 500 that Wellington Management believes are under-valued and that will outperform peer companies, while maintaining an overall risk level similar to that of the benchmark. Wellington Management attempts to exceed the performance of the S&P 500/BARRA Value Index over a cycle of five years.

Wellington Management uses a disciplined structured investment approach and quantitative analytical techniques designed to identify stocks with the highest probability of outperforming their peers coupled with a portfolio construction process designed to keep the overall portfolio risk characteristics similar to that of the benchmark. Wellington Management focuses on companies that may be temporarily out of favor or whose earnings or assets may not be fully reflected in their stock prices. Securities are sold when the Money Manager believes that the investment has achieved its intended purpose, when upside potential is considered limited, or when more attractive opportunities are available.

Principal Investment Risks

Stock Market Volatility.Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments.

Company Risk.The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the market as a whole. The value stocks that the Value Fund invests in tend to be issued by larger, more established companies, and may underperform in periods of general market strength. Value stocks contained in the S&P 500 have generated less current income in recent years than they have in earlier periods.

Portfolio Turnover. The Value Fund’s annual turnover rate may exceed 100%. A fund with a high turnover rate (100% or more) pays more commissions and may generate more capital gains than a fund with a lower rate. Brokerage commissions are expenses and reduce returns. Capital gains distributions will reduce after tax returns for shareholders holding Value Fund shares in taxable accounts.

GRAPHIC Small to Mid Cap Fund

Summary

Investment Objective The Small to Mid Cap Fund seeks capital growth through investing primarily in equity securities of small to medium capitalization issuers.

Principal Strategies The Fund invests at least 65% of its total assets in the stocks of small and medium capitalization companies that are expected to experience higher than average growth of earnings or stock price. The Fund will maintain an average market capitalization similar to the average market capitalization of the Wilshire 4500 Index, and will attempt to have a roughly similar distribution of stocks by market capitalization as the Wilshire 4500 Index.

SSgA Funds Management, Inc. (“SSgA”), the Fund’s Money Manager, uses a solid multi-factor stock evaluation model to help them identify the best stocks within each industry. Their sophisticated model takes into account transaction costs and the complex risk characteristics of the portfolio relative to the index. The Money Manager attempts to exceed the performance of the Wilshire 4500 Index over a cycle of five years.

Principal Investment Risks Stock Market Volatility. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments.

Company Risk.The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the market as a whole. Small and medium capitalization companies often have greater volatility, lower trading volume and less liquidity than larger capitalization companies.

Portfolio Turnover. The Small to Mid Cap Fund’s annual turnover rate may exceed 100%. A fund with a high turnover rate (100% or more) pays more commissions and may generate more capital gains than a fund with a lower rate. Brokerage commissions are expenses and reduce returns. Capital gains distributions will reduce after tax returns for shareholders holding Small to Mid Cap Fund shares in taxable accounts.

GRAPHIC International Equity Fund

Summary

Investment Objective The International Equity Fund seeks capital growth by investing primarily in equity securities of companies domiciled in countries other than the United States and traded on foreign stock exchanges.

Principal Strategies The Fund will invest at least 65% of its total assets in the stocks of companies domiciled in Europe and the Pacific Rim. The Fund normally intends to maintain investments in at least three different countries outside the United States. This Fund is intended to provide investors with exposure to a broad spectrum of international equity securities. Therefore, this Fund may invest in companies that are in developed countries, as well as companies that are in emerging economies. The Fund may invest in companies that exhibit growth characteristics as well as those that might be considered good values, and these companies may vary in size from small to very large.

The investment approach of Nicholas-Applegate Capital Management (“Nicholas-Applegate”), the Fund’s Money Manager, reflects a focus on individual security selection(commonly referred to as a bottom up approach). Nicholas-Applegate uses fundamental qualitative and quantitative analysis to seek companies that are industry leaders and in the process of positive change to construct a portfolio that generally parallels the countries comprising the Morgan Stanley Capital International (“MSCI”) EAFEÒ+EMF Index. They will attempt to find companies that are changing in a positive way, whose change is sustainable, and whose change will be recognized by the market. They will attempt to buy securities that in their opinion will out-perform the index. The Money Manager attempts to exceed the total return of the MSCI EAFE+EMF Index.

Company Risk.The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently than the market as a whole.

Foreign Exposure.Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse currency, issuer, political, regulatory, market or economic developments and can perform differently than the U.S. market.

Portfolio Turnover. The International Equity Fund’s annual turnover rate may exceed 100%. A fund with a high turnover rate (100% or more) pays more commissions and may generate more capital gains than a fund with a lower rate. Brokerage commissions are expenses and reduce returns. Capital gains distributions will reduce after tax returns for shareholders holding International Equity Fund shares in taxable accounts.

GRAPHIC High Yield Bond Fund

Summary

Investment Objective The High Yield Bond Fund seeks high current income by investing primarily in lower-rated, high-yield corporate debt securities.

Principal Strategies The Fund invests primarily in lower-rated, high-yield corporate debt securities commonly referred to as “junk bonds.” Under normal conditions, at least 65% of the Fund’s total assets will be invested in debt securities rated lower than BBB by Standard & Poor’s Corporation (“S&P”) or lower than Baa by Moody’s Investors Services, Inc. (“Moody’s”), or unrated securities judged to be of comparable quality by the Money Manager. The Fund will normally maintain an aggregate dollar-weighted average portfolio duration that does not vary outside of a band of plus or minus 20% from that of the Lehman Brothers U.S. Corporate High Yield Index.

Financial Management Advisors, Inc. (“FMA”), the Fund’s Money Manager, selects debt securities on a company-by company basis, emphasizing fundamental research and a long-term investment horizon. Their analysis focuses on the nature of a company’s business, its strategy, and the quality of its management. Based on this analysis, FMA looks primarily for companies whose prospects are stable or improving, and whose bonds offer an attractive yield. Companies with improving prospects are normally more attractive, in the opinion of FMA, because they offer better assurance of debt repayment.

Principal Investment Risks Bond Market Volatility. Individual securities are expected to fluctuate in response to issuer, general economic and market changes. An individual security or category of securities may, however, fluctuate more or less than the market as a whole.

Interest Rate Risk. Increases in interest rates can cause the price of a debt security to decrease. Debt securities with longer maturities tend to be more sensitive to interest rates than bonds with shorter maturities.

Issuer Risk. Changes in the financial condition of an issuer, changes in specific economic or political conditions that affect a particular issuer, and changes in general economic or political conditions can adversely affect the credit quality or value of an issuer’s securities. Lower rated debt securities can be more sensitive to these factors.

Credit Risk. Credit risk is the possibility that an issuer will fail to make timely payments of interest or principal. Some issuers may not make payments on debt securities held by a Fund, causing a loss. Or, an issuer may suffer adverse changes in its financial condition that could lower the credit quality of a security, leading to greater volatility in the price of the security and in shares of a Fund. A change in the quality rating of a bond or other security can also affect the security's liquidity and make it more difficult for a Fund to sell. Lower rated debt securities and comparable unrated debt securities in which a Fund may invest are more susceptible to these problems than higher quality obligations.

Lower Rated Debt Securities. Debt securities rated lower than BBB by S&P or lower than Baa by Moody’s are commonly referred to as “junk bonds.” Lower rated debt securities and comparable unrated debt securities have speculative characteristics and are subject to greater risks than higher rated securities. Because of its investments in junk bonds, the High Yield Bond Fund is subject to substantial Credit Risk. Credit quality in the high-yield bond market can change suddenly and unexpectedly, and even recently-issued credit ratings may not fully reflect the actual risks of a particular high-yield bond. Lower rated debt securities can be difficult to resell and issuers may fail to pay principal and interest when due causing the Fund to incur losses and reducing the Fund’s return.

GRAPHIC Intermediate Fixed-Income Fund

Summary

Investment Objective The Intermediate Fixed-Income Fund seeks generation of current income by investing primarily in fixed‑income securities with durations of between three and ten years and a dollar-weighted average portfolio duration that does not vary more or less than 20% from that of the Lehman Brothers Government/Credit Index (the "LBGC Index").

Principal Strategies The Fund primarily invests in corporate bonds or U.S. Government or agency securities that are of investment grade quality or that are unrated but judged to be of comparable quality or higher by the Money Manager. The Fund may also invest up to 20% of the Fund’s net assets in securities rated BBB by S&P or Baa by Moody's and up to 6% of the Fund’s net assets in securities rated BB by S&P or Ba by Moody's, or debt securities that are unrated but judged to be of comparable quality by the Money Manager. Cypress Asset Management (“Cypress”), the Fund's Money Manager, uses quantitative analyses and risk control methods to ensure that the Fund’s overall risk and duration characteristics are consistent with the LBGC Index. Cypress seeks to enhance the Fund's returns by systematically overweighting its investments in the corporate sector as compared to the index.

Credit Risk. Credit risk is the possibility that an issuer will fail to make timely payments of interest or principal. Some issuers may not make payments on debt securities held by a Fund, causing a loss. Or, an issuer may suffer adverse changes in its financial condition that could lower the credit quality of a security, leading to greater volatility in the price of the security and in shares of a Fund. A change in the quality rating of a bond or other security can also affect the security's liquidity and make it more difficult for a Fund to sell. Lower rated debt securities and comparable unrated debt securities in which a Fund may invest are more susceptible to these problems than higher quality obligations.

GRAPHIC Short-Intermediate Fixed-Income Fund

Summary

Investment Objective The Short-Intermediate Fixed-Income Fund seeks preservation of capital and generation of current income by investing primarily in fixed‑income securities with durations of between one and five years and a dollar-weighted average portfolio duration that does not vary more or less than 20% from that of the Lehman Brothers Government/Credit 1-5 Year Index (the "LBGC 1-5 Index").

Principal Strategies The Fund primarily invests in corporate bonds or U.S. Government or agency securities that are of investment grade quality or that are unrated but judged to be of comparable quality or higher by the Money Manager. The Fund may also invest up to 20% of the Fund’s net assets in securities rated BBB by S&P or Baa by Moody's and up to 6% of the Fund’s net assets in securities rated BB by S&P or Ba by Moody's, or debt securities that are unrated but judged to be of comparable quality by the Money Manager. Cypress, the Fund's Money Manager, uses quantitative analyses and risk control methods to ensure that the Fund’s overall risk and duration characteristics are consistent with the LBGC1-5 Index. Cypress seeks to enhance the Fund's returns by systematically overweighting its investments in the corporate sector as compared to the index.

Lower Rated Debt Securities. Debt securities rated lower than BBB by S&P or lower than Baa by Moody’s are commonly referred to as “junk bonds.”. Lower rated debt securities and comparable unrated debt securities have speculative characteristics and are subject to greater risks than higher rated securities.

GRAPHIC Mortgage Securities Fund

Summary

Investment Objective The Mortgage Securities Fund seeks generation of current income by investing primarily in mortgage‑related securities with an aggregate dollar-weighted average portfolio duration that does not vary outside of a band of plus or minus 20% from that of the Lehman Brothers Mortgage-Backed Securities Index (the “LBM Index”).

Principal Strategies Under normal market conditions, the Fund invests at least 65% and generally more than 80% of its total assets in mortgage-related securities issued by the U.S. Government or its agencies or non-U.S. Government mortgage-related securities rated A or higher by S&P or Moody’s. BlackRock Financial Management, Inc. (“BlackRock”), the Fund's Money Manager, uses quantitative risk control methods to ensure that the Fund’s overall risk and duration characteristics are consistent with the LBM Index. BlackRock’s investment philosophy and process centers around four key principles:

controlled duration (controlling sensitivity to interest rates);

relative value sector rotation and security selection (analyzing a sector’s and a security’s impact on the overall portfolio);

rigorous quantitative analysis to security valuation (mathematically analyzing a security’s value); and

quality credit analysis (analyzing a security’s credit quality).

BlackRock’s Investment Strategy Committee determines the firm’s broad investment strategy based on macroeconomics (for example, interest rate trends) and market trends, as well as input from risk management and credit committee professionals. Fund managers then implement this strategy by selecting the sectors and securities which offer the greatest relative value within investment guidelines.

Interest Rate Risk. Increases in interest rates can cause the price of a debt security to decrease. The market value of mortgage related securities can and will fluctuate as interest rates and market conditions change. Fixed-rate mortgages can decline in value during periods of rising interest rates.

Prepayment Risk. The ability of an issuer of a debt security to repay principal prior to a security's maturity can cause greater price volatility if interest rates change. For example, if interest rates are dropping and an issuer pays off an obligation or a bond before maturity, the Fund may have to reinvest at a lower interest rate.

Issuer Risks. Changes in the financial conditions of an issuer, changes in specific economic or political conditions that affect a particular issuer, and changes in general economic or political conditions can adversely affect the credit quality or value of an issuer’s securities.

Portfolio Turnover. The Mortgage Securities Fund’s annual turnover rate may exceed 100%. A fund with a high turnover rate (100% or more) pays more commissions and may generate more capital gains than a fund with a lower rate. Brokerage commissions are expenses and reduce returns. Capital gains distributions will reduce after tax returns for shareholders holding Mortgage Securities Fund shares in taxable accounts.

GRAPHIC U.S. Government Money Fund

Summary

Investment Objective The U.S. Government Money Fund seeks maximum current income consistent with the preservation of principal and liquidity by investing primarily in short‑term obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities.

Principal Strategies Accessor Capital directly invests the assets of the Fund. Accessor Capital uses quantitative analysis to maximize the Fund’s yield. The Fund follows industry standard requirements concerning the quality, maturity and diversification of its investments. The Fund seeks to maintain an average maturity of 90 days or less, while maintaining liquidity and maximizing current yield.

Principal Investment Risks Interest Rate Risk. The Fund’s yield will vary and is expected to react to changes in short-term interest rates.

Inflation Risk. Over time, the real value of the Fund’s yield may be eroded by inflation.

Stable Net Asset Value. Although the U.S. Government Money Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

PERFORMANCE

The following tables illustrate changes (and therefore, the risk elements) in the performance of Advisor Class Shares of the Funds from year to year and compare the performance of Advisor Class Shares to the performance of a market index over time. As with all mutual funds, how the Funds have performed in the past is not an indication of how they will perform in the future.

Growth Fund Annual Returns

DATA POINTS

As of 12/31 each year

1993	14.21%	Best Quarter
1994	3.99	27.65%
1995	34.32	4^th Qtr 1998
1996	19.83	Worst Quarter
1997	33.24	-18.60%
1998	46.65	4^th Qtr 2000
1999	25.87
2000	-23.58

Average Annual Total Return 1 Yr 5 Yrs Since Incept*

As of 12/31/00 Fund -23.58% 17.63% 17.88%

S&P 500/BARRA Growth Index⁽¹⁾ -22.07% 19.19% 17.16%**

*8/24/92 Inception Date **Index measured from 9/1/92

⁽¹⁾ The S&P 500 is an unmanaged index of 500 common stocks chosen to reflect the industries in the U.S. economy. The S&P 500/BARRA Growth Index is an unmanaged index of growth stocks in the S&P 500. Large capitalization growth stocks are the stocks within the S&P 500 that generally have high expected earnings growth and higher than average price-to-book ratios.

Value Fund Annual Returns

DATA POINTS

As of 12/31 each year

1993	14.69%	Best Quarter
1994	-1.93	18.96%
1995	33.25	4^th Qtr 1998
1996	23.94	Worst Quarter
1997	32.94	-15.24%
1998	12.89	3^rd Qtr 1998
1999	6.87
2000	2.38

Average Annual Total Return

As of 12/31/00

1 Yr 5 Yrs Since Incept*

Fund 2.38% 15.27% 15.07%

S&P 500/BARRA Value Index⁽¹⁾ 6.09% 16.81% 16.92%**

*--8/24/92 Inception Date **Index measured from 9/1/92

⁽¹⁾ The S&P 500/BARRA Value Index is an unmanaged index of value stocks in the S&P 500. Large capitalization value stocks are the stocks within the S&P 500 that generally are priced below the market average based on earnings and lower than average price-to-book ratios.

Small to Mid Cap Fund Annual Returns

DATA POINTS

As of 12/31 each year

1993 14.39%

1994 -4.07

1995 31.98

1996 24.85

1997 36.14

1998 15.98

1999 27.26

2000 -18.22

Best Quarter:

24.23%

4^th Qtr 1998

Worst Quarter:

-18.56%

3^rd Qtr 1998

Average Annual Total Return

As of 12/31/00

1 Yr 5 Yrs Since Incept*

Fund -18.22% 15.46% 15.64%

Wilshire 4500 Index(1) -15.77% 12.80% 14.48%**

Small to Mid Cap Composite Index (2) -15.77% 12.80% 15.11%**

*--8/24/92 Inception Date **Index measured from 9/1/92

⁽¹⁾ The Wilshire 4500 Index is an unmanaged index of stocks of medium and small capitalization companies not in the S&P 500.

⁽²⁾ The Small to Mid Cap Composite Index is a hypothetical index constructed by Accessor Capital, which combines the BARRA Institutional Small Index and the Wilshire 4500 Index. The Composite is intended to provide a benchmark for comparison that reflects the different investment policies that the Fund has followed in the past. In 1995, shareholders approved changes to the Fund's investment policies to change the Fund from a small cap fund to a small to medium cap fund. Accordingly, prior to October 1995, the BARRA Index is used. Starting October 1995, the Wilshire Index is used.

International Equity Fund Annual Returns

DATA POINTS

As of 12/31 each year

1995 7.63

1996 13.78

1997 10.96

1998 16.07

1999 48.93

2000 -24.55

Best Quarter

30.20%

4^th Qtr 1999

Worst Quarter

-13.36%

3^rd Qtr 1998

Average Annual Total Return

As of 12/31/00

1 Yr 5 Yrs Since Incept*

Fund -24.55% 10.49% 9.11%

MSCI EAFE+EMF Index(1) -15.87% 6.36% 5.82%**

International Composite Index(2) -15.87% 6.29% 6.26%**

*10/3/94 Inception Date **Index measured from 11/1/94

⁽¹⁾The MSCI EAFE + EMF Index is an unmanaged index of 46 developed (excluding the United States and Canada) and emerging market countries, including Japan, the United Kingdom, Germany and France.

⁽²⁾ The International Composite Index is a hypothetical index constructed by Accessor Capital, which combines the MSCI EAFE Index and the MSCI EAFE+EMF Index. The Composite is intended to provide a benchmark for comparison that reflects the different investment policies that the Fund has followed in the past. Prior to May 1996, the Fund did not invest in emerging market securities. Beginning in May 1996, the Fund was permitted to do so. Accordingly, prior to May 1996, the MSCI EAFE Index is used. Starting in May 1996, the MSCI EAFE+EMF Index is used.

High Yield Bond Fund Annual Returns

Note: As of April 30, 2001, the High Yield Bond Fund has not had a full calendar year of returns, and thus its performance is not reflected in the Prospectus.

Intermediate Fixed-Income Fund Annual Returns

DATA POINTS

As of 12/31 each year

1993 9.53

1994 -5.24

1995 18.26

1996 2.56

1997 8.62

1998 8.38

1999 -3.58

2000 10.17

Best Quarter

6.13%

2^nd Qtr 1995

Worst Quarter

-3.53%

1^st Qtr 1994

Average Annual Total Return

As of 12/31/00

1 Yr 5 Yrs Since Incept*

Fund 10.17% 5.10% 5.97%

Lehman Bros Govt/Credit Index(1) 11.84% 6.23% 6.90%**

*6/15/92 Inception Date **Index measured from 7/1/92

⁽¹⁾ The Lehman Brothers Government/Credit Index is an unmanaged index of fixed-rate government and corporate bonds rated investment grade or higher.

Short-Intermediate Fixed-Income Fund Annual Returns

DATA POINTS

As of 12/31 each year

1993 5.63

1994 -1.42

1995 11.42

1996 3.63

1997 6.33

1998 6.87

1999 1.22

2000 7.54

Best Quarter

3.58%

1^ST Qtr 1995

Worst Quarter

-1.34%

1^st Qtr 1994

Average Annual Total Return

As of 12/31/00

1 Yr 5 Yrs Since Incept*

Fund 7.54% 5.09% 5.20%

Lehman Bros Govt/Credit 1-5 Yr Index (1) 8.92% 6.07% 6.31%**

*5/18/92 Inception Date **Index measured from 6/1/92

⁽¹⁾ The Lehman Brothers Government/Credit 1-5 Year Index is an unmanaged index of fixed-rate government and corporate bonds rated investment grade or higher, all with maturities of one to five years.

Mortgage Securities Fund Annual Returns

DATA POINTS

As of 12/31 each year

1993 7.26

1994 -1.65

1995 16.03

1996 4.95

1997 9.53

1998 6.43

1999 1.19

2000 11.11

Best Quarter

5.11%

1^ST Qtr 1995

Worst Quarter

-1.21%

1^st Qtr 1994

Average Annual Total Return

As of 12/31/00

1 Yr 5 Yrs Since Incept*

Fund 11.11% 6.59% 6.71%

Lehman Bros Mortgage-Backed

Securities Index(1) 11.17% 6.92% 7.09%**

*5/18/92 Inception Date **Index measured from 6/1/92

⁽¹⁾ The Lehman Brothers Mortgage-Backed Securities Index is an unmanaged index of fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (“GNMA”), Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal National Mortgage Association (“FNMA”).

U.S. Government Money Fund Annual Returns

DATA POINTS

As of 12/31 each year

1993 2.81

1994 3.70

1995 5.33

1996 4.78

1997 5.07

1998 5.00

1999 4.72

2000 5.99

Best Quarter

1.53%

4^th Qtr 2000

Worst Quarter

0.66%

2^nd Qtr 1993

Average Annual Total Return

As of 12/31/00

1 Yr 5 Yrs Since Incept*

Fund 5.99% 5.11% 4.56%

Salomon Brothers U.S. 3 Month

T-Bill Index (1) 5.96% 5.25% 4.80%**

*4/9/92 Inception Date **Index measured from 5/1/92

(1) The Salomon Brothers U.S. 3 Month T-bill Index is designed to measure the return of the 3 month Treasury bills.

The U.S. Government Money Fund’s 7-day effective yield on 12/29/2000 was 6.24%. For the Fund’s current yield, call toll-free (800) 759-3504.

EQUITY FUNDS’ EXPENSES

The following tables describe the fees and expenses that you may pay if you buy and hold Advisor Class Shares of the Equity Funds. Except where noted, the tables reflect historical fees and expenses of the Funds.

Growth Value Small to International

Mid Cap Equity

Shareholder Fees ^{(1)
(2)}

(fees paid directly from your investment)

Maximum Sales Charge imposed on

Purchases (as a percent of offering price) None None None None

Maximum Sales Charge imposed on

Reinvested Dividends None None None None

Maximum Deferred Sales Charge None None None None

Redemption Fee⁽³⁾ None None None None

Annual Fund Operating Expenses

(expenses deducted from Fund assets)

Management Fees ⁽⁴⁾ 0.65% 0.65% 0.80% 1.10%

Distribution and Service (12b-1) Fee None None None None

Other Expenses⁽⁵⁾ 0.24 0.24 0.24 0.32

Total Annual Fund Operating Expenses 0.89 0.89 1.04 1.42

⁽¹⁾ Shares of the Funds are expected to be sold primarily through financial intermediaries that may charge shareholders a fee. These fees are not included in the tables.

⁽²⁾ An annual maintenance fee of $25.00 may be charged by Accessor Capital, as the Transfer Agent, to each IRA with an aggregate balance of less than $10,000 on December 31 of each year.

⁽³⁾ The Transfer Agent may charge a processing fee of $10.00 for each check redemption request.

⁽⁴⁾ Management fees consist of the management fee paid to Accessor Capital and the fees paid to the Money Managers of the Funds. Management fees have been restated to reflect the estimated maximum fee to be paid to the current Money Managers during the current fiscal year under their respective contracts.

⁽⁵⁾ Other Expenses are restated to reflect estimated other expenses for the current fiscal year.

Expense Example: The Example shows what an investor in Advisor Class Shares of a Fund could pay over time. The Example is intended to help you compare the cost of investing in the Funds with the cost of investing in other mutual funds.

The Example assumes that you invest $10,000 in Advisor Class Shares of a Fund for the time periods indicated and then redeem all of your shares by wire at the end of those periods. The Example does not include the effect of the $10 fee for check redemption requests. The Example also assumes that your investment has a 5% rate of return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

One Year Three Years Five Years 10 Years

GROWTH $ 91.00 $ 284.00 $ 493.00 $ 1,096.00

VALUE 91.00 284.00 493.00 1,096.00

SMALL TO MID CAP

106.00 331.00 574.00 1,271.00

INTERNATIONAL EQUITY 145.00 449.00 776.00 1,702.00

FIXED-INCOME FUNDS’ EXPENSES

The following tables describe the fees and expenses that you may pay if you buy and hold Advisor Class Shares of the Fixed-Income Funds. Except where noted, the tables reflect historical fees and expenses of the Funds.

Short-

High Intermediate Intermediate Mortgage U.S.

Yield Fixed- Fixed- Securities Govern-

Bond Income Income ment

Money

Shareholder Fees⁽¹⁾⁽²⁾

(fees paid directly from your investment)

Maximum Sales Charge imposed on

Purchases (as a percent of offering price) None None None None None

Maximum Sales Charge imposed on

Reinvested Dividends None None None None None

Maximum Deferred Sales Charge None None None None None

Redemption Fee⁽³⁾ None None None None None

Annual Fund Operating Expenses

(expenses deducted from Fund assets)

Management Fees ⁽⁴⁾ 0. 51% 0.38 % _0.38 % 0.59 % 0.25%

Distribution and Service (12b-1) Fee none none none none none

Other Expenses 0.35 0.28 0.28 0.28 0.20

Total Annual Fund Operating Expenses 0.86 0.66 0.66 0.87 0.45

⁽¹⁾ Shares of the Funds are expected to be sold primarily through financial intermediaries that may charge shareholders a fee. These fees are not included in the tables.

⁽²⁾ An annual maintenance fee of $25.00 may be charged by Accessor Capital, as the Transfer Agent, to each IRA with an aggregate balance of less than $10,000 on December 31 of each year.

³⁾ The Transfer Agent may charge a processing fee of $10.00 for each check redemption request.

⁽⁴⁾ Management fees consist of the management fee paid to Accessor Capital and the fees paid to the Money Managers of the Funds. Accessor Capital receives only the management fee and not a Money Manager fee for the U. S. Government Money Fund that it manages directly.

The Example assumes that you invest $10,000 in Advisor Class Shares of a Fund for the time periods indicated and then redeem all of your shares by wire at the end of those periods. This Example does not include the effect of the $10 fee for check redemption requests. The Example also assumes that your investment has a 5% rate of return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

FUND One Year Three Years Five Years 10 Years

One Year Three Years Five Years 10 Years

HIGH YIELD BOND $ 88.00 $ 274.00 $ 477.00 $ 1,061.00

INTERMEDIATE FIXED-INCOME 67.00 211.00 368.00 822.00

SHORT-INTERMEDIATE FIXED-INCOME 67.00 211.00 368.00 822.00

MORTGAGE SECURITIES 89.00 278.00 482.00 1,073.00

U.S. GOVERNMENT MONEY 46.00 144.00 252.00 567.00

EQUITY FUNDS' OBJECTIVES AND STRATEGIES

Growth Fund

Investment Objective The Growth Fund seeks capital growth through investing primarily in equity securities with greater than average growth characteristics selected from the S&P 500.

Principal Investment Strategies The Fund seeks to achieve its objective by investing principally in common and preferred stocks, securities convertible into common stocks, and rights and warrants of such issuers. The Money Manager will attempt to exceed the total return performance of the S&P 500/BARRA Growth Index over a market cycle of five years by investing primarily in stocks of companies that are expected to experience higher than average growth of earnings or growth of stock price.

Other Investment Strategies The Fund may be invested in common stocks of foreign issuers with large market capitalizations whose securities have greater than average growth characteristics. The Fund may engage in various portfolio strategies (for example, options) to reduce certain risks of its investments and may thereby enhance income, but not for speculation.

Value Fund

Investment Objective The Value Fund seeks generation of current income and capital growth by investing primarily in income-producing equity securities selected from the S&P 500.

Principal Investment Strategies The Fund seeks to achieve its objective by investing principally in common and preferred stocks, convertible securities, and rights and warrants of companies whose stocks have lower price multiples (either price/earnings or price/book value) than others in their industries; or which, in the opinion of the Money Manager, have improving fundamentals (such as growth of earnings and dividends). The Money Manager will attempt to exceed the total return performance of the S&P 500/BARRA Value Index over a market cycle of five years. Value stocks contained in the S&P 500 have generated less current income in recent years than they have in earlier periods.

Other Investment Strategies The Fund may be invested in equity securities of foreign issuers with large market capitalizations. The Fund may engage in various portfolio strategies (for example, options) to reduce certain risks of its investments and to enhance income, but not for speculation.

Small to Mid Cap Fund

Investment Objective The Small to Mid Cap Fund seeks capital growth through investing primarily in equity securities of small to medium capitalization issuers.

Principal Investment Strategies The Fund seeks to achieve its objective by investing at least 65% of the value of its total assets in stocks of small and medium capitalization issuers. The Fund will attempt to maintain an average market capitalization similar to the average market capitalization of the Wilshire 4500 Index, and will attempt to have a roughly similar distribution of stocks by market capitalization as the Wilshire 4500 Index. Generally, small capitalization issuers are issuers that have a capitalization of $1 billion or less at the time of investment and medium capitalization issuers have a capitalization ranging from $1 billion to $10 billion at the time of investment. The Money Manager will attempt to exceed the total return performance of the Wilshire 4500 Index over a market cycle of five years by investing primarily in stocks of companies that are expected to experience higher than average growth of earnings or growth of stock price. The Fund invests principally in common and preferred stocks, securities convertible into common stocks, and rights and warrants of such issuers.

Other Investment Strategies The Fund may invest up to 20% of its net assets in common stocks of foreign issuers with small to medium market capitalizations. The Fund may engage in various portfolio strategies (for example, options) to reduce certain risks of its investments and may thereby enhance income, but not for speculation.

International Equity Fund

Investment Objective The International Equity Fund seeks capital growth by investing primarily in equity securities of companies domiciled in countries other than the United States and traded on foreign stock exchanges.

Principal Investment Strategies The Fund seeks to achieve its objective by investing at least 65% of its total assets principally in stocks issued by companies domiciled in Europe (including Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden, Switzerland and the United Kingdom) and the Pacific Rim (including Australia, Hong Kong, Japan, New Zealand and Singapore). The Fund intends to maintain investments in at least three different countries outside the United States. This Fund is intended to provide investors with exposure to a broad spectrum of international equity securities. Therefore, this Fund may invest in companies that are in developed countries, as well as companies that are in emerging economies. The Fund may invest in companies that exhibit growth characteristics as well as those that might be considered good values, and these companies may vary in size from small to very large. The Fund’s Money Manager, reflects a focus on individual security selection (commonly referred to as a bottom up approach). Nicholas-Applegate uses fundamental qualitative and quantitative analysis to seek companies that are industry leaders and in the process of positive change to construct a portfolio that generally parallels the countries comprising MSCI EAFE+EMF Index. They will attempt to find companies that are changing in a positive way, whose change is sustainable, and whose change will be recognized by the market. They will attempt to buy securities that in their opinion will out-perform the index. The Money Manager attempts to exceed the total return of the MSCI EAFE+EMF Index. See Appendix A for a list of countries included in the MSCI EAFE+EMF Index.

Other Investment Strategies The Fund may also invest in securities of countries generally considered to be emerging or developing countries by the World Bank, the International Finance Corporation, the United Nations or its authorities (“Emerging Countries”) See Appendix A for a full list of the countries. The Fund may invest up to 20% of its net assets in fixed-income securities, including instruments issued by foreign governments and their agencies, and in securities of U.S. companies that derive, or are expected to derive, a significant portion of their revenues from their foreign operations. The Fund may engage in various portfolio strategies (for example, options) to reduce certain risks of its investments and may thereby enhance income, but not for speculation.

EQUITY FUNDS' SECURITIES AND RISKS

This section describes the security types for and risks of investing in the Growth, Value, Small to Mid Cap, and International Equity Funds, the Accessor Funds’ “Equity Funds.”

Many factors affect each Fund’s performance. A Fund’s share price changes daily based on changes in financial markets and interest rates and in response to other economic, political or financial developments. A Fund’s reaction to these developments will be affected by the financial condition, industry and economic sector, and geographic location of an issuer, and the Fund’s level of investment in the securities of that issuer. When you sell your shares of a Fund, they could be worth more or less than what you paid for them.

In response to market, economic, political or other conditions, each Fund’s Money Manager may temporarily use a different investment strategy for defensive purposes, including investing in short-term and money market instruments. If a Money Manager does so, different factors could affect a Fund’s performance and the Fund may not achieve its investment objective. Each Fund is actively managed. Frequent trading of portfolio securities will result in increased expenses for the Funds and may result in increased taxable distributions to shareholders and may adversely affect the Funds’ performance. Each Fund’s investment objective stated in the Equity Funds' Objectives and Strategies section is fundamental and may not be changed without shareholder approval.

Principal Security Types

Equity Securities represent an ownership interest, or the right to acquire an ownership interest, in an issuer. Different types of equity securities provide different voting and dividend rights and priority in the event of the bankruptcy of the issuer. Equity securities include common stocks, preferred stocks, convertible securities and warrants.

Other Security Types

Debt Securities are used by issuers to borrow money. The issuer usually pays a fixed, variable or floating rate of interest, and must repay the amount borrowed at the maturity of the security. Some debt securities, such as zero coupon bonds, do not pay current interest but are sold at a discount from their face values. Debt securities include corporate debt securities, including convertible bonds, government securities, and mortgage and other asset-backed securities.

Options, Futures and Other Derivatives. The Funds may use techniques such as buying and selling options or futures contracts in an attempt to change the Funds’ exposure to security prices, currency values, or other factors that affect the value of the Funds’ portfolios.

Principal Risks

Stock Market Volatility.Stock values fluctuate in response to issuer, political, market and economic developments. In the short term, stock prices can fluctuate dramatically in response to these developments. Securities that undergo an initial public offering may trade at a premium in the secondary markets. However, there is no guarantee that a Fund will have the ability to participate in such offerings on an ongoing basis.

Company Risk. Changes in the financial condition of an issuer, changes in specific economic or political conditions that affect a particular type of issuer, and changes in general economic or political conditions can affect the credit quality or value of an issuer’s securities. Securities of small and medium capitalization issuers often have greater volatility, lower trading volume and less liquidity than larger capitalization companies

Foreign Exposure. Foreign exposure is a principal risk for the International Equity Fund, which concentrates its investments in foreign securities, and may also be a risk for the other Equity Funds. Foreign securities, foreign currencies and securities issued by U.S. entities with substantial foreign operations can involve additional risks relating to political, economic or regulatory conditions in foreign countries. These risks include fluctuations in foreign currencies; withholding or other taxes; trading, settlement, custodial and other operational risks; and the less stringent investor protection and disclosure standards of some foreign markets.

Investing in emerging markets involves risks in addition to and greater than those generally associated with investing in more developed foreign markets. The extent of foreign development, political stability, market depth, infrastructure and capitalization and regulatory oversight are generally less than in more developed markets. Emerging market economies can be subject to greater social, economic regulatory and political uncertainties. All of these factors can make foreign investments, especially those in emerging markets, more volatile and potentially less liquid than U.S. investments. In addition, foreign markets can perform differently than the U.S. market.

Each Fund's portfolio securities usually are valued on the basis of the most recent closing market prices at 4 p.m. Eastern time when each Fund calculates its NAV. Most of the securities in which the International Equity Fund invests, however, are traded in markets that close before that time. For securities primarily traded in the Far East, for example, the most recent closing prices may be as much as 15 hours old at 4 p.m. Normally, developments that could affect the values of portfolio securities that occur between the close of the foreign market and 4 p.m. Eastern time will not be reflected in the International Equity Fund’s NAVs. However, if the International Equity Fund determines that such developments are so significant that they will clearly and materially affect the value of the International Equity Fund's securities, the International Equity Fund may adjust the previous closing prices for these securities to reflect fair value.

Other Risks

Interest Rate Changes.The stock market is dependent on general economic conditions. Changes in interest rates can affect the performance of the stock market.

FIXED-INCOME FUNDS' OBJECTIVES AND STRATEGIES

High Yield Bond Fund

Investment Objective The Fund seeks high current income by investing primarily in lower-rated, high-yield corporate debt securities.

Principal Investment Strategies The Fund seeks to achieve its objective by investing primarily in a diversified portfolio of lower-rated, high-yield corporate debt securities, commonly referred to as “junk bonds.” Under normal conditions the Fund will invest at least 65% of its total assets in high-yield corporate debt securities rated lower than BBB by S&P or lower than Baa by Moody’s or unrated securities that are judged to be of comparable quality by the Money Manager. The Fund will not invest in securities that, at the time of initial investment, are rated higher than BBB+ or lower than CCC- by S&P or higher than Baa3 or lower than B3 by Moody’s.

The Fund will maintain an aggregate dollar-weighted average portfolio duration that does not vary outside of a band of plus or minus 20% from that of the Lehman Brothers U.S. Corporate High Yield Index or another relevant index approved by the Board of Directors.

Investment selections will be based on fundamental economic, market and other factors leading to variation by sector, maturity, quality and such other criteria appropriate to meet the Fund’s objective. The Money Manager will attempt to exceed the total return performance of the Lehman Brothers U.S. Corporate High Yield Index.

Other Investment Strategies The Fund may also invest in bonds of foreign issuers provided that the Fund will not invest in foreign bonds that are rated lower than BBB by S&P or lower than Baa by Moody’s or unrated securities that are judged to be of comparable quality by the Money Manager. The Fund will not invest in securities that, at the time of initial investment, are rated higher than BBB+ or lower than CCC- by S&P or higher than Baa3 or lower than B3 by Moody’s, or in unrated securities that the Money Manager or Accessor Capital determines to be of comparable quality. The Fund may also invest in preferred stocks, convertible securities, and non-income producing high-yield bonds, such as zero coupon bonds, which pay interest only at maturity, or payment-in-kind bonds, which pay interest in the form of additional securities. The Fund may utilize options on U.S. Government securities, interest rate futures contracts and options on interest rate futures contracts to reduce certain risks of its investments and attempt to enhance income, but not for speculation.

Intermediate Fixed-Income Fund

Principal Investment Strategies The Fund seeks to achieve its objective by investing at least 65% and generally more than 80% of its total assets in fixed-income securities and will have a dollar-weighted average duration of between three and ten years. The Fund invests principally in debt securities with durations of between three and ten years and rated A or higher by S&P or Moody's at the time of purchase. The Fund may invest up to 20% of its net assets in securities rated BBB by S&P or Baa by Moody's and up to 6% of its net assets in securities rated BB by S&P or Ba by Moody's. The Money Manager may also invest in debt securities not rated by S&P or Moody’s if the Money Manager or Accessor Capital determines the securities to be of comparable quality to rated securities at the time of purchase. The Fund may invest in the following debt securities: 1) corporate bonds, 2) U.S. Government and agency bonds, and 3) mortgage-backed or asset-backed securities.

Investment selections will be based on fundamental economic, market and other factors leading to variation by sector, maturity, quality and other criteria appropriate to meet the Fund's objective. The Fund may purchase lower rated debt securities when the Money Manager views the issuer's credit as stable or improving, and the difference in the yield offered by investment grade and below investment grade securities is large enough to compensate for the increased risks associated with investing in lower rated securities. The Money Manager will attempt to exceed the total return performance of the LBGC Index.

Other Investment Strategies The Fund may be invested in debt securities of foreign issuers if the Money Manager or Accessor Capital determines the securities to be of comparable quality to securities rated A or higher at the time of purchase. The Money Manager will also seek to enhance returns through the use of certain trading strategies such as purchasing odd lot securities. The Fund may utilize options on U.S. Government securities, interest rate futures contracts and options on interest rate futures contracts to reduce certain risks of its investments and to attempt to enhance income, but not for speculation.

Short-Intermediate Fixed-Income Fund

Principal Investment Strategies The Fund seeks to achieve its objective by investing at least 65% and generally more than 80% of its total assets in fixed-income securities and will have a dollar-weighted average duration of not less than two years nor more than five years. The Fund invests principally in debt securities with durations between one and five years and rated A or higher by S&P or Moody's at the time of purchase. The Fund may invest up to 20% of its net assets in securities rated BBB by S&P or Baa by Moody's and up to 6% of its net assets in securities rated BB by S&P or Ba by Moody's. The Money Manager may also invest in debt securities not rated by S&P or Moody’s if the Money Manager or Accessor Capital determines the securities to be of comparable quality to rated securities at the time of purchase. The Fund may invest in the following debt securities: 1) corporate bonds, 2) U.S. Government and agency bonds, and 3) mortgage-backed or asset-backed securities.

Other Investment Strategies The Fund may be invested in debt securities of foreign issuers if the Money Manager or Accessor Capital determines the securities to be of comparable quality to securities rated A or higher at the time of purchase. The Money Manager will also seek to enhance returns through the use of certain trading strategies such as purchasing odd lot securities. The Fund may utilize options on U.S. Government securities, interest rate futures contracts and options on interest rate futures contracts to reduce certain risks of its investments and to attempt to enhance income, but not for speculation.

Mortgage Securities Fund

Principal Investment Strategies The Fund seeks to achieve its objective by investing at least 65% and generally more than 80% of its total assets in mortgage-related securities. The Fund invests principally in mortgage-related securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities, and will only invest in non-U.S. Government mortgage-related securities rated A or higher by S&P or Moody's or determined to be of comparable quality by the Money Manager or Accessor Capital at the time of purchase.

Other Investment Strategies The Fund may utilize options on U.S. Government securities, interest rate futures contracts and options on interest rate futures contracts to reduce certain risks of its investments and to attempt to enhance income, but not for speculation.

U.S. Government Money Fund.

Principal Investment Strategies The Fund follows industry guidelines concerning the quality and maturity of its investments. The dollar-weighted average portfolio maturity of the Fund will not exceed 90 days. The Fund seeks to achieve its objective by investing at least 65% and generally more than 80% of the Fund’s total assets in fixed-income securities.

The U.S. Government Money Fund seeks to maintain a stable share par value of $1.00 per share, although there is no assurance that it will be able to do so. It is possible to lose money by investing in the U.S. Government Money Fund.

Other Investment Strategies The Fund may enter into repurchase agreements collateralized by U.S. Government or agency securities.

FIXED-INCOME FUNDS' SECURITIES AND RISKS

This section describes the security types for and the risks of investing in the Intermediate Fixed-Income, Short-Intermediate Fixed-Income, High Yield Bond, Mortgage Securities, and U.S. Government Money Funds, the Accessor Funds’ “Fixed-Income Funds.”

Many factors affect each Fund’s performance. A Fund’s yield and (except the U.S. Government Money Fund’s) share price changes daily based on changes in the financial markets, and interest rates and in response to other economic, political or financial developments. A Fund’s reaction to these developments will be affected by the financial condition, industry and economic sector, and geographic location of an issuer, and the Fund’s level of investment in the securities of that issuer. A Fund's reaction to these developments will also be affected by the types, durations, and maturities of the securities in which the Fund invests. When you sell your shares of a Fund, they could be worth more or less than what you paid for them.

In response to market, economic, political or other conditions, each Fund’s Money Manager may temporarily use a different investment strategy for defensive purposes, including investing in short-term and money market instruments. If a Money Manager does so, different factors could affect a Fund’s performance and the Fund may not achieve its investment objective. Each Fund is actively managed. Frequent trading of portfolio securities will result in increased expenses for the Funds and may result in increased taxable distributions to shareholders and may adversely affect the Fund’s performance. Each Fund’s investment objective stated in the Fixed-Income Funds' Objectives and Strategies section is fundamental and may not be changed without shareholder approval.

Principal Security Types

Debt Securities are used by issuers to borrow money. The issuer usually pays a fixed, variable or floating rate of interest, and must repay the amount borrowed at the maturity of the security. Some debt securities, such as zero coupon bonds, do not pay current interest but are sold at a discount from their face values. Debt securities include corporate debt securities including convertible bonds, government securities, and mortgage and other asset-backed securities.

High-yield Corporate Debt Securities are a principal security type for the High Yield Bond Fund and also may be purchased by the Intermediate and Short-Intermediate Fixed-Income Funds. High-yield corporate debt securities are often issued as a result of corporate restructurings – such as leveraged buyouts, mergers, acquisitions, or other similar events. They also may be issued by less creditworthy or by highly leveraged companies, which are generally less able than more financially stable firms to make scheduled payments of interest and principal. These types of securities are considered speculative by the major rating agencies and rated lower than BBB by S&P or lower than Baa by Moody’s.

Mortgage-Related Securities are a principal security type for the Mortgage Securities Fund and may also be purchased by the Intermediate Fixed-Income, Short-Intermediate Fixed-Income and High Yield Bond Funds. Mortgage-related securities are interests in pools of mortgages. Payment of principal or interest generally depends on the cash flows generated by the underlying mortgages. Mortgage securities may be U.S. Government securities or issued by a bank or other financial institution.

U.S. Government Securitiesare a principal security type for the U.S. Government Money Fund and may also be purchased by the other Fixed-Income Funds. U.S. Government Securities are high-quality securities issued or guaranteed by the U.S. Treasury or by an agency or instrumentality of the U.S. Government. U.S. Government securities may be backed by the full faith and credit of the U.S. Treasury, the right to borrow from the U.S. Treasury, or the agency or instrumentality issuing or guaranteeing the security.

Money Market Securities are a principal security type for the U.S. Government Money Fund and may also be purchased by the other Fixed-Income Funds. Money Market Securities are high-quality, short-term debt securities that pay a fixed, variable or floating interest rate. Securities are often specifically structured so that they are eligible investments for a money market fund. For example, in order to satisfy the maturity restrictions for a money market fund, some money market securities have demand or put features which have the effect of shortening the security's maturity.

Other Security Types

Equity Securities such as common stock and preferred stock, represent an equity or ownership interest in an issuer. Certain types of equity securities, such as warrants, are sometimes attached to or acquired in connection with debt securities. Preferred stocks pay dividends at a specified rate and have precedence over common stock as to the payment of dividends.

Repurchase Agreements are an agreement to buy a security at one price and a simultaneous agreement to sell it back at an agreed upon price.

Options, Futures and Other Derivatives The Funds may use techniques such as buying and selling options or futures contracts in an attempt to change the Funds’ exposure to security prices, currency values, or other factors that affect the value of the Funds’ portfolios.

Principal Risks

Bond Market Volatility. Individual securities are expected to fluctuate in response to issuer, general economic and market changes. An individual security or category of securities may, however, fluctuate more or less than the market as a whole.

Issuer Risk. Changes in the financial condition of an issuer, changes in specific economic or political conditions that affect a particular type of issuer, and changes in general economic or political conditions can adversely affect the credit quality or value of an issuer’s securities. The value of an individual security or category of securities may be more volatile than the debt market as a whole. Entities providing credit support or a maturity-shortening structure are also affected by these types of changes. Any of a Fund’s holdings could have its credit downgraded or could default, which could affect the Fund’s performance.

Credit Risk. Credit risk is a principal risk for the High Yield Bond Fund, which concentrates its investments in securities with lower credit quality, and for the Intermediate and Short-Intermediate Fixed-Income Funds. Credit risk is the possibility that an issuer will fail to make timely payments of interest or principal. Some issuers may not make payments on debt securities held by a Fund, causing a loss. Or, an issuer may suffer adverse changes in its financial condition that could lower the credit quality of a security, leading to greater volatility in the price of the security and in shares of a Fund. A change in the quality rating of a bond or other security can also affect the security's liquidity and make it more difficult for a Fund to sell. Lower rated debt securities and comparable unrated debt securities are more susceptible to these problems than higher quality obligations.

Lower Rated Debt Securities. Lower rated debt securities are a principal risk for the High Yield Bond Fund, which concentrates its investments in lower rated debt securities, and are also a risk for the Intermediate and Short-Intermediate Fixed-Income Funds. Debt securities rated lower than BBB by S&P or lower than Baa by Moody’s are commonly referred to as “junk bonds.” Lower rated debt securities and comparable unrated debt securities have speculative characteristics and are subject to greater risks than higher rated securities. These risks include the possibility of default on principal or interest payments and bankruptcy of the issuer. During periods of deteriorating economic or financial conditions, the ability of issuers of lower rated debt securities to service their debt, meet projected goals or obtain additional financing may be impaired. In addition, the market for lower rated debt securities has in the past been more volatile and less liquid than the market for higher rated debt securities. These risks could adversely affect the Funds that invest in these debt securities.

Because of its concentration in investments in junk bonds, the High Yield Bond Fund is subject to substantial credit risk. Credit quality in the high-yield bond market can change suddenly and unexpectedly, and even recently issued credit ratings may not fully reflect the actual risks of a particular high-yield bond. The Funds’ Money Managers will not rely solely on ratings issued by established credit rating agencies, but will utilize these ratings in conjunction with its own independent and ongoing credit analysis.

Interest Rate Risk. Debt and money market securities have varying levels of sensitivity to changes in interest rates. In general, the price of a debt or money market security falls when interest rates rise and rises when interest rates fall. Securities with longer durations generally are more sensitive to interest rate changes. In other words, the longer the duration of a security, the greater the impact a change in interest rates is likely to have on the security’s price. In addition, short-term securities tend to react to changes in short-term interest rates, and long-term securities tend to react to changes in long-term interest rates. When interest rates fall, the U.S. Government Money Fund’s yield will generally fall as well.

Prepayment Risk. Prepayment risk is a principal risk for the Mortgage Securities Fund, which concentrates its investments in mortgage securities, and may also be a risk for the other Fixed-Income Funds. Many types of debt securities, including mortgage securities, are subject to prepayment risk. Prepayment occurs when the issuer of a security can repay principal prior to the security’s maturity. For example, if interest rates are dropping and an issuer pays off an obligation or a bond before maturity, the Fund may have to reinvest at a lower interest rate. Securities subject to prepayment generally offer less potential for gains during periods of declining interest rates and similar or greater potential for loss in periods of rising interest rates. In addition, the potential impact of prepayment features on the price of a debt security can be difficult to predict and result in greater volatility. Prepayments on assets underlying mortgage or other asset-backed securities held by a Fund can adversely affect those securities’ yield and price.

Inflation Risk. The real value of the U.S. Government Money Fund’s yield may be eroded by inflation over time. The U.S. Government Money Fund may under perform the bond and equity markets over time.

Other Risks

Stock Market Volatility. The value of equity securities fluctuates in response to issuer, political, market and economic developments.

Foreign Exposure. Foreign securities, such as debt securities of foreign issuers, can involve additional risks relating to political, economic, or regulatory conditions in foreign countries. All of these factors can make investing in foreign securities more volatile and less liquid than U.S. investments.

MANAGEMENT, ORGANIZATION AND CAPITAL STRUCTURE

Manager & Administrator Accessor Capital Management LP, 1420 Fifth Avenue, Suite 3600, Seattle, WA 98101

Each Fund is a portfolio of Accessor Funds, Inc. ("Accessor Funds"), a Maryland corporation. Accessor Capital develops the investment programs for the Funds, selects the Money Managers for the Funds, and monitors the performance of the Money Managers. In addition, Accessor Capital directly invests the assets of the U.S. Government Money Fund. J. Anthony Whatley, III, is the Executive Director of Accessor Capital. Ravindra A. Deo, Vice President and Chief Investment Officer of Accessor Capital, is primarily responsible for the day-to-day management of the Funds either directly or through interaction with each Fund’s Money Manager. Mr. Deo is also responsible for managing the liquidity reserves of each Fund. The Securities and Exchange Commission issued an exemptive order that allows Accessor Funds to change a Fund’s Money Manager without shareholder approval, as long as, among other things, the Board of Directors has approved the change in Money Manager and Accessor Funds has notified the shareholders of the affected Fund within 60 days of the change.

Each Fund pays Accessor Capital an annual management fee for providing management and administration services equal to the following percentage of each Fund’s average daily net assets:

Management Fee to Accessor Capital

(as a percentage of

Fund average daily net assets)

Growth 0.45%

Value 0.45%

Small to Mid Cap 0.60%

International Equity 0.55%

High Yield Bond 0.36%

Intermediate Fixed-Income 0.36%

Short-Intermediate Fixed-Income 0.36%

Mortgage Securities 0.36%

U.S. Government Money 0.25%

Each Fund has also hired Accessor Capital to provide transfer agent, registrar, dividend disbursing agent and certain other services to the Funds. For providing these services, Accessor Capital receives (i) a fee equal to 0.15% of the average daily net assets of the Growth, Value, Small to Mid Cap and International Equity Funds and 0.13% of the average daily net assets of the High Yield Bond, Intermediate Fixed-Income, Short-Intermediate Fixed-Income, Mortgage Securities and U.S. Government Money Funds and (ii) a transaction fee of $0.50 per transaction.

On the following pages is information on each Fund's Money Manager and a description of how each Money Manager is compensated for the services it provides.

Each Fund paid the following management fees in fiscal year 2000 (reflected as a percentage of average net assets) to Accessor Capital and/or the Fund’s Money Manager:

Fund Total Management Fees

(as a percentage of average net assets)

for fiscal year 2000

Growth 0.66%

Value 0.57%

Small to Mid Cap 1.01%

International Equity 1.11%

High Yield Bond 0.51%

Intermediate Fixed-Income 0.38%

Short-Intermediate Fixed-Income 0.38%

Mortgage Securities 0.59%

U.S. Government Money Fund: 0.25%

MANAGEMENT, ORGANIZATION AND CAPITAL STRUCTURE

Growth Fund

Money Manager Chicago Equity Partners, LLC, 180 N. LaSalle Street, Suite 3800, Chicago, IL 60601

Chicago Equity Partners utilizes a team approach to managing portfolios. David Johnsen is the Senior Portfolio Manager responsible for the day-to-day management of the Fund. David has been with Chicago Equity Partners and its predecessors for over 23 years.

For the first five calendar quarters of management of the Growth Fund by Chicago Equity Partners, they will earn a management fee of 0.20% that consists of a basic fee of 0.10% and a portfolio management fee of 0.10%.

Prior to Chicago Equity Partners, Geewax, Terker & Company was the money manager of the Growth Fund. The former money manager managed the Fund from July 27, 1997 until March 15, 2000. Geewax Terker earned a management fee calculated and paid quarterly that consisted of a basic fee and a performance fee. This is the same fee structure that Chicago Equity Partners will earn once they have completed five complete calendar quarters. Beginning with the sixth calendar quarter of management by Chicago Equity Partners, the basic fee will be equal to an annual rate of 0.10 % of the Growth Fund’s average daily net assets. The performance fee for any quarter depends on the percentage amount by which the Growth Fund’s performance exceeds or trails that of the S&P 500/BARRA Growth Index during the applicable measurement period based on the following schedule:

Basic Fee	Average Annualized Performance Differential vs. Benchmark Index	Annual Performance Fee	Total Annual Fee
0.10%	>2.00%	0.22%	0.32%
	>1.00% and< 2.00%	0.20%	0.30%
	>0.50% and < 1.00%	0.15%	0.25%
	>0.00% and < 0.50%	0.10%	0.20%
	>-0.50% and < 0.00%	0.05%	0.15%
	<-0.50%	0.00%	0.10%

During the period from the sixth calendar quarter through the 13th calendar quarter of Chicago Equity Partners’ management of the Growth Fund, the applicable measurement period will be the entire period since the commencement of their management of the Growth Fund with the exception of the quarter immediately preceding the date of calculation.

Commencing with the 14th quarter of Chicago Equity Partners’ management of the Growth Fund, the applicable measurement period will consist of the 12 most recent calendar quarters, except for the quarter immediately preceding the date of calculation.

Under the performance fee formula, Chicago Equity Partners will receive a performance fee if the Growth Fund’s performance either exceeds the S&P 500/BARRA Growth Index, or trails the S&P 500/BARRA Growth Index by no more than 0.50%. Because the performance fee is based on the performance of the Growth Fund relative to its benchmark Index, Chicago Equity Partners may receive a performance fee even if the Growth Fund’s and the Index’s total returns are negative.

Value Fund

Money Manager Wellington Management Company, LLP, 75 State Street, Boston, MA 02109

Doris Dwyer Chu is the Portfolio manager responsible for the day to day management of the Fund. Ms. Chu has been with Wellington Management since 1998. From 1985 until 1998, she was a partner and international portfolio manager at Grantham, Mayo, Van Otterloo & Company. Ms. Chu relies on fundamental research provided by Wellington Management’s Global Industry Analysts.

For the first five calendar quarters of management of the Value Fund, Wellington Management will earn a management fee of 0.20% that consists of a basic fee of 0.10% and a portfolio management fee of 0.10%.

Prior to Wellington Management, Martingale Asset Management, L.P. was the money manager of the Value Fund. The former money manager managed the Fund from August 24, 1992 until January 9, 2001. Martingale earned a management fee calculated and paid quarterly that consisted of a basic fee and a performance fee. This is the same fee structure that Wellington Management will earn once it has completed five complete calendar quarters. Beginning with the sixth calendar quarter of management by Wellington Management, the basic fee will be equal to an annual rate of 0.10 % of the Value Fund’s average daily net assets. The performance fee for any quarter depends on the percentage amount by which the Value Fund’s performance exceeds or trails that of the S&P 500/BARRA Value Index during the applicable measurement period based on the following schedule:

Basic Fee	Average Annual Performance Differential vs. Benchmark Index	Annual Performance Fee	Total Annual Fee
0.10%	>2.00%	0.22%	0.32%
	>1.00% and< 2.00%	0.20%	0.30%
	>0.50% and < 1.00%	0.15%	0.25%
	>0.00% and < 0.50%	0.10%	0.20%
	>-0.50% and < 0.00%	0.05%	0.15%
	<-0.50%	0.00%	0.10%

During the period from the sixth calendar quarter through the 13th calendar quarter of Wellington Management’s management of the Value Fund, the applicable measurement period will be the entire period since the commencement of its management of the Value Fund, with the exception of the quarter immediately preceding the date of calculation. Commencing with the 14th quarter of Wellington Management’s management of the Value Fund, the applicable measurement period will consist of the 12 most recent calendar quarters, except for the quarter immediately preceding the date of calculation.

Small to Mid Cap Fund

Money Manager SSgA Funds Management, Inc., Two International Place, Boston, MA 02110

Ric Thomas, CFA, is primarily responsible for the day-to-day management and investment decisions for the Small to Mid Cap Fund, and Douglas T. Holmes, CFA will act as back up. Mr. Thomas is a Principal of SSgA and a Portfolio Manager in the Enhanced Equity Group. Prior to joining State Street in 1998, he was a quantitative analyst on the portfolio construction team at Putnam Investments. Previously, Mr. Thomas was an assistant economist at the Federal Reserve Bank of Kansas City. Mr. Thomas has been working in the investment management field since 1990. Mr. Holmes is a Principal of SSgA and heads the Global Enhanced Equity Group. Prior to joining State Street in 1984, Mr. Holmes was a partner at Lovett, Ward & Bertelsen. Mr. Holmes has been working in the investment management industry since 1980.

SSgA earns a management fee calculated and paid quarterly that, for the first five complete calendar quarters of management by SSgA, consists on an annual basis of a fund management fee of 0.20%, paid quarterly, applied to the average daily net assets of the Fund.

Prior to SSgA, Symphony Asset Management LLC was the money manager of the Small to Mid Cap Fund. The former money manager managed the Fund from 1995 until May 31, 2001. Symphony earned a management fee calculated and paid quarterly that consisted of a performance fee. This is the same fee structure that SSgA will earn once it has completed five complete calendar quarters. Beginning with the sixth calendar quarter of management by SSgA, the performance fee for any quarter depends on the percentage amount by which the Small to Mid Cap Fund’s performance exceeds, or trails that of the Wilshire 4500 Index during the applicable measurement period based on the schedule to the right as applied to the average daily net assets of the Fund:

Average Annualized

Performance Differential

vs. Benchmark Index Annual Performance Fee

>3.00% 0.42%

>2.00% and < 3.00% 0.35%

>1.00% and < 2.00% 0.30%

>0.50% and < 1.00% 0.25%

>0.00% and < 0.50% 0.20%

>-0.50% and < 0.00% 0.15%

>-1.00% and < -0.50% 0.10%

>-1.50% and < -1.00% 0.05%

<-1.50% 0.00%

As of the 14th quarter of SSgA’s management of the Small to Mid Cap Fund, the applicable measurement period will consist of the twelve most recent calendar quarters, excluding the quarter immediately preceding the date of calculation.

Under the performance fee formula, SSgA will receive a performance fee if the Small to Mid Cap Fund’s performance either exceeds the Wilshire 4500 Index, or trails the Wilshire 4500 Index by no more than 1.50%. Because the performance fee is based on the performance of the Small to Mid Cap Fund relative to its benchmark Index, SSgA may receive a performance fee even if the Small to Mid Cap Fund’s and the Index’s total returns are negative.

International Equity Fund

Money Manager Nicholas-Applegate Capital Management, 600 West Broadway, 29th Floor, San Diego, CA 92101

Catherine Somhegyi Nicholas, Lawrence S. Speidell and Loretta J. Morris are primarily responsible for making the day-to-day management and investment decisions for the International Equity Fund. Ms. Somhegyi Nicholas, Chief Investment Officer, Global Equity Management, joined Nicholas-Applegate in 1987. Mr. Speidell, Director of Research, joined Nicholas-Applegate in 1994. From 1983 to 1994, Mr. Speidell was a portfolio manager for Batterymarch Financial Management. Ms. Morris, Portfolio Manager, International, joined Nicholas-Applegate in 1990.

Nicholas-Applegate earns a management fee calculated and paid quarterly that consists of a basic fee and a performance fee. The basic fee is equal to an annual rate of 0.20% of the Fund's average daily net assets up to a maximum of $400,000 annualized. The performance fee for any quarter depends on the percentage amount by which the International Equity Fund's performance exceeds or trails that of the MSCI EAFE+EMF Index during the applicable measurement period based on the schedule at the right:

Average Annualized Performance Differential vs. Benchmark Index	Annual Performance Fee
³4.00%	0.40%
³2.00% and <4.00%	0.30%
³0.00% and <2.00%	0.20%
³ -2.00% and <0.00%	0.10%
< -2.00%	0.00%

Example: If Nicholas-Applegate is outperforming the Index by more than 4% per year, then the following table shows the annualized total fee at various asset levels:

Asset Level	New Total Annual Fee	Old Total Annual Fee
$150 million	0.20% + 0.40% = 0.60%	0.20% + 0.40% = 0.60%
$200 million	$400,000 (or 0.20%) + 0.40% = 0.60%	0.20% + 0.40% = 0.60%
$250 million	$400,000 (or 0.16%) + 0.40% = 0.56%	0.20% + 0.40% = 0.60%
$300 million	$400,000 (or 0.13%) + 0.40% = 0.53%	0.20% + 0.40% = 0.60%
$350 million	$400,000 (or 0.11%) + 0.40% = 0.51%	0.20% + 0.40% = 0.60%
$400 million	$400,000 (or 0.10%) + 0.40% = 0.50%	0.20% + 0.40% = 0.60%

As of the 14th quarter (2nd quarter 1998) of Nicholas-Applegate’s management of the International Equity Fund, the applicable measurement period consists of the 12 most recent calendar quarters, excluding the quarter immediately preceding the date of calculation.

Under the performance fee formula, Nicholas-Applegate will receive a performance fee if the International Equity Fund’s performance either exceeds the MSCI EAFE + EMF Index, or trails the MSCI EAFE + EMF Index by no more than 2.00%. Because the performance fee is based on the performance of the International Equity Fund relative to its benchmark Index, Nicholas-Applegate may receive a performance fee even if the International Equity Fund’s and the Index’s total returns are negative.

High Yield Bond Fund

Money Manager Financial Management Advisors, Inc., 1900 Avenue of the Stars, Suite 900, Los Angeles, CA 90067

FMA uses a team approach. Kenneth D. Malamed and Steven S. Michaels are primarily responsible for the day-to-day management of the Fund. Mr. Malamed, President and Chief Investment Officer, founded FMA in 1985. In 1992, the assets, operations and client base of FMA were acquired by Wertheim Schroder Investment Services, Inc. (later renamed Schroder Wertheim Investment Services, Inc.), where Ken Malamed served as Managing Director, Director of Fixed-Income and Chairman of the Credit Committee. In November 1995, Mr. Malamed terminated his association with Schroder Wertheim. In December of 1995, he re-established FMA and continued on with a portion of the investment advisory business. Mr. Michaels, Senior Vice President and Managing Director of High Yield Fixed Income, joined FMA in 1991. He was Senior High Yield Credit Analyst at Schroder Wertheim Investment Services, Inc. from 1992 to 1995. He continued on with Mr. Malamed in January 1996 at the re-established FMA.

For the first five complete calendar quarters of management, FMA will earn a management fee equal to an annual rate of 0.15% that consists of a basic fee equal to an annual rate of 0.07% and a portfolio management fee equal to an annual rate of 0.08%. The management fee is calculated and paid quarterly.

Beginning with the sixth complete calendar quarter of management, FMA will earn the basic fee described above and a performance fee, calculated and paid quarterly. The performance fee for any quarter depends on the percentage amount by which the Fund’s performance exceeds or trails that of its benchmark index, the Lehman Brothers U.S. Corporate High Yield Index, during the applicable measurement period based on the following schedule:

Basic Fee	Average Annualized Performance Differential vs. Benchmark Index	Annual Performance Fee	Total Annual Fee
0.07%	>2.00%	0.22%	0.29%
	>1.50% and £ 2.00%	0.20%	0.27%
	>1.00% and £ 1.50%	0.16%	0.23%
	>0.50% and £1.00%	0.12%	0.19%
	>-0.50% and £ 0.50%	0.08%	0.15%
	>-1.00% and £-0.50%	0.04%	0.11%
	£-1.00%	0.00%	0.07%

The measurement period consists of the 12 most recent calendar quarters, excluding the quarter immediately preceding the date of calculation.

Under the performance fee formula, FMA will receive a performance fee if the High Yield Bond Fund’s performance either exceeds the Lehman Brothers U.S. Corporate High Yield Index or trails the Lehman Brothers U.S. Corporate High Yield Index by no more than 1.00%. Because the performance fee is based on the performance of the High Yield Bond Fund relative to its benchmark Index, FMA may receive a performance fee even if the High Yield Bond Fund’s and the Index’s total returns are negative.

Intermediate Fixed-Income

Short-Intermediate Fixed-Income

Money Manager Cypress Asset Management, 26607 Carmel Center Place, Suite 101, Carmel, CA 93923

Mr. Xavier Urpi, President and Chief Investment Officer, is primarily responsible for the day-to-day management and investment decisions and is assisted by Mr. Michael Banyra, Managing Director. Mr. Urpi founded Cypress in 1995. Prior to that, Mr. Urpi was at Smith Barney Capital as a Director of Fixed-Income from March 1989 to September 1995. Mr Banyra joined Cypress in April 1999. Previously, Mr. Banyra was employed at Ark Asset Management Company (formerly known as Lehman Management Company) from 1986 to 1999.

Cypress earns a management fee from each Fund calculated and paid quarterly that consists of a basic fee and a performance fee, calculated and paid quarterly. The performance fee for any quarter depends on the percentage amount by which each Fund’s performance exceeds that of its respective Benchmark Index, the Lehman Brothers Government/Credit Index (Intermediate Fixed-Income) and the Lehman Brothers Government/Credit 1-5 Year Index (Short-Intermediate Fixed-Income) during the applicable measurement period based on the following schedule:

Basic Fee	Average Annualized Performance Differential vs. Benchmark Index	Annual Performance Fee	Total Annual Fee
0.02%	>0.70%	0.15%	0.17%
	>0.50% and £0.70%	0.05% plus 1/2 (P-0.50%)*	Up to 0.17%
	³0.35% and £0.50%	0.05%	0.07%
	<0.35%	0.00%	0.02%

*P = Performance. Example: If Cypress outperforms the benchmark index by 0.60%, the fee would be calculated as [0.02% basic fee + 0.05% Performance Fee + {(0.60%-0.50%)/2}] = 0.12%

The measurement period from the sixth calendar quarter (1st quarter 2000) through the 13th calendar quarter (4th quarter 2001) of Cypress’ management of each Fund, will be the entire period since the commencement of Cypress’ management of each Fund, excluding the quarter immediately preceding the date of calculation. Commencing with the 14th quarter (1st quarter 2002) of Cypress’ management of each Fund, the applicable measurement period will consist of the 12 most recent calendar quarters, excluding the quarter immediately preceding the date of calculation.

Under the performance fee formula, Cypress will receive a performance fee if either Intermediate Fixed-Income Fund’s or Short-Intermediate Fixed-Income Fund’s performance equals or exceeds the Lehman Brothers Government/Credit Index or the Lehman Brother Government/Credit 1-5 Year Index, respectively, by at least 0.35%. Because the performance fee is based on the performance of the Intermediate Fixed-Income Fund and the Short-Intermediate Fixed-Income Fund relative to their respective benchmark Index, Cypress may receive a performance fee even if a Fund’s and the Index’s total returns are negative.

Mortgage Securities Fund

Money Manager BlackRock Financial Management, Inc., 345 Park Avenue, New York, 10154

BlackRock's Investment Strategy Group has primary responsibility for setting the broad investment strategy and for overseeing the ongoing management of all client portfolios. Mr. Andrew J. Phillips, Managing Director, is primarily responsible for the day-to-day management and investment decisions for the Mortgage Securities Fund. Mr. Phillips' primary responsibility is the management of the firm's investment activities in fixed-rate mortgage securities, including pass-throughs and CMOs. He directs the development of investment strategy and coordinates execution for all client portfolios. Prior to joining BlackRock in 1991, Mr. Phillips was a portfolio manager at Metropolitan Life Insurance Company.

BlackRock earns a management fee from the Fund that consists of a basic fee and a performance fee. The management fee is calculated and paid quarterly. The basic fee is equal to an annual rate of 0.07 % of the Fund’s average daily net assets. The performance fee for any quarter depends on the percentage amount by which the Mortgage Securities Fund’s performance exceeds or trails that of the Lehman Brothers Mortgage-Backed Securities Index during the applicable measurement period based on the following schedule:

Basic Fee	Average Annualized Performance Differential vs. Benchmark Index	Annual Performance Fee	Total Annual Fee
0.07%	³2.00%	0.18%	0.25%
	³0.50% and< 2.00%	0.16%	0.23%
	³0.25% and < 0.50%	0.12%	0.19%
	³-025. And < 0.25%	0.08%	0.15%
	³-0.50% and <-0.25%	0.04%	0.11%
	<-0.50%	0.00%	0.07%

The measurement period consists of the 12 most recent calendar quarters, excluding the quarter immediately preceding the date of calculation.

Under the performance fee formula, BlackRock will receive a performance fee if the Mortgage Securities Fund’s performance either exceeds the Lehman Brothers Mortgage-Backed Securities Index, or trails the Lehman Brothers Mortgage-Backed Securities Index by no more than 0.50%. Because the performance fee is based on the performance of the Mortgage Securities Fund relative to its benchmark Index, BlackRock may receive a performance fee even if the Mortgage Securities Fund’s and the Index’s total returns are negative.

U.S. Government Money Fund

Manager Accessor Capital Management LP, 1420 Fifth Avenue, Suite 3600, Seattle, WA 98101

Accessor Capital directly invests the assets of the U.S. Government Money Fund. Accessor Capital receives no additional fee beyond its management fee, as previously described, for this service.

PURCHASING FUND SHARES

WHERE TO PURCHASE

Direct. Investors may purchase Advisor Class Shares directly from Accessor Funds for no sales charge or commission.

Financial Intermediaries. Advisor Class Shares may be purchased through financial intermediaries, such as banks, broker-dealers, registered investment advisers and providers of fund supermarkets. In certain cases, a Fund will be deemed to have received a purchase or redemption when it is received by the financial intermediary. The order will be priced at the next calculated NAV. Financial intermediaries are responsible for transmitting accepted orders of the Funds within the time period agreed upon by them. You should contact your financial intermediary to learn whether it is authorized to accept orders for the Funds. These financial intermediaries may also charge transaction, administrative or other fees to shareholders, and may impose other limitations on buying, selling or transferring shares, which are not described in this Prospectus. Some features of the Advisor Class Shares, such as investment minimums, redemption fees and certain trading restrictions, may be modified or waived by financial intermediaries. Shareholders should contact their financial intermediary for information on fees and restrictions.

HOW TO PURCHASE

Purchase orders are accepted on each business day that the New York Stock Exchange is open and must be received in proper form prior to the close of the New York Stock Exchange, normally 4:00 p.m. Eastern time. If Accessor Capital receives a purchase order for shares of U.S. Government Money Fund on any business day marked “Same Day Settlement” and the invested monies are wired before 3:00 p.m. Eastern time, the investor will be entitled to receive that day’s dividend. Otherwise, Accessor Capital must receive payment for shares by 12:00 p.m. Eastern time on the business day following the purchase request. All purchases must be made in U.S. dollars. Purchases may be made any of the following ways:

By Check. Checks made payable to “Accessor Funds, Inc.” and drawn on a U.S. bank should be mailed with the completed application or with the account number and name of Fund noted on the check to

Accessor Funds, Inc.

Attn: Shareholder Services

P. 0. Box 1748

Seattle, WA 98111-1748

If you pay with a check that does not clear or if your payment is not timely received, your purchase will be canceled. You will be responsible for any losses or expenses incurred by each Fund or the transfer agent, and the Fund can redeem shares you own in this or another identically registered Accessor Fund account as reimbursement. Each Fund and its agents have the right to reject or cancel any purchase, exchange, or redemption due to nonpayment.

By Federal Funds Wire. Wire instructions are described on the account application.

By Telephone. Shareholders with aggregate account balances of at least $1 million may purchase Advisor Class Shares by telephone at 1-800-759-3504. To prevent unauthorized transactions, Accessor Funds may use reasonable procedures to verify telephone requests.

By Purchases In Kind. Under some circumstances, the Funds may accept securities as payment for Advisor Class Shares. Such securities would be valued the same way the Funds’ securities are valued (see "Valuation of Securities".) Please see “Additional Purchase and Redemption Information” in the Statement of Additional Information for further information.

IRAs/ROTH IRAs

Investors may purchase Advisor Class Shares through an Individual or Roth Retirement Custodial Account Plan. An IRA or Roth IRA account with an aggregate balance of less than $10,000 across all Funds on December 31 of any year will be assessed a $25.00 fee. Copies of an IRA or Roth IRA Plan may be obtained from Accessor Capital by calling (800) 759-3504.

Investment Minimums

Regular Accounts

Retirement Accounts

Initial Investment

One Fund only: $5,000

Multiple Funds: $10,000 aggregated among the Funds

Additional Investment(s)

One Fund only: $1,000

Multiple Funds: $2,000 aggregated among the Funds

Initial Investment

Traditional IRA/ $2,000 aggregated

Roth IRA: among the Funds

Additional Investment(s)

Traditional IRA/ $2,000 aggregated

Roth IRA: among the Funds

Accessor Funds may accept smaller purchase amounts or reject any purchase order it believes may disrupt the management of the Funds.

SHARE PRICING

Investors purchase Advisor Class Shares of a Fund at its net asset value per share (“NAV”). The NAV is calculated by adding the value of Fund assets attributable to Advisor Class Shares, subtracting Fund liabilities attributable to the class, and dividing by the number of outstanding Advisor Class Shares. The NAV is calculated each day that the New York Stock Exchange (“NYSE”) is open for business. The Funds generally calculate their NAV at the close of regular trading on the NYSE, generally 4:00 p.m. Eastern time. Shares are purchased at the NAV that is next calculated after purchase requests are received by the Funds.

MARKET TIMING

Short-term or excessive trading into and out of a Fund may harm performance by disrupting portfolio management strategies and by increasing expenses. A Fund may temporarily or permanently terminate the exchange privilege of any investor who makes more than four exchanges out of a Fund per calendar year. Moreover, a Fund may reject any purchase orders, including exchanges, particularly from market timers or investors who, in Accessor Capital’s opinion, have a pattern of short-term or excessive trading or whose trading has been or may be disruptive to that Fund. For these purposes, Accessor Capital may consider an investor’s trading history in that Fund or other Funds, and accounts under common ownership or control.

FOR MORE INFORMATION

For additional information about purchasing shares of the Accessor Funds, please contact us at (800) 759-3504.

Exchanging Fund Shares

As a shareholder, you have the privilege of exchanging shares of the Funds for shares of other Accessor Funds. Advisor Class Shares may be exchanged for shares of any other Fund on days when the NYSE is open for business, as long as shareholders meet the normal investment requirements of the other Fund. The request must be received in proper form by the Fund or certain financial intermediaries prior to the close of the NYSE, normally 4:00 p.m. Eastern time. Shares will be exchanged at the next NAV calculated after Accessor Capital receives the exchange request in proper form. The Fund may temporarily or permanently terminate the exchange privilege of any investor who makes more than four exchanges out of the Fund per calendar year. Shareholders should read the prospectus of any other Fund into which they are considering exchanging.

Exchanges Through Accessor Funds.

Accessor Funds does not currently charge fees on exchanges directly through it. This exchange privilege may be modified or terminated at any time by Accessor Funds upon 60 days notice to shareholders. Exchanges may be made any of the following ways:

By Mail. Share exchange instructions may be mailed to:

Accessor Funds, Inc.

Attn: Shareholder Services

P. O. Box 1748

Seattle, WA 98111-1748.

By Fax. Instructions may be faxed to Accessor Funds at (206) 224-4274.

An exchange of shares from a Fund involves a redemption of those shares and will be treated as a sale for tax purposes.

Exchanges Through Financial Intermediaries

You should contact your financial intermediary directly to make exchanges. Your financial intermediary may charge additional fees for these transactions.

Redeeming Fund Shares

Investors may request to redeem Advisor Class Shares on any day that the NYSE is open for business. The request must be received in proper form by the Fund or certain financial intermediaries prior to the close of the NYSE, normally 4:00 p.m. Eastern time. If Accessor Capital receives a redemption request in good order from a shareholder of the U.S. Government Money Fund by 3:00 p.m. Eastern time, marked “Same Day Settlement”, the shareholder will be entitled to receive redemption proceeds by wire on the same day. Shareholders of the U.S. Government Money Fund who elect this option should be aware that their account will not be credited with the daily dividend on that day. Shares will be redeemed at the next NAV calculated after Accessor Capital receives the redemption request in proper form. Payment will ordinarily be made within seven days of the request by wire-transfer to a shareholder’s domestic commercial bank account. Shares may be redeemed from Accessor Funds any of the following ways:

By Mail. Redemption requests may be mailed to:

Accessor Funds, Inc.

Attn: Shareholder Services

P. 0. Box 1748

Seattle, WA 98111-1748.

By Fax. Redemption requests may be faxed to Accessor Capital at (206) 224-4274.

By Telephone. Shareholders with aggregate account balances of at least $1 million may request redemption of shares by telephone at (800) 759-3504. To prevent unauthorized transactions, Accessor Funds may use reasonable procedures to verify telephone requests.

Shareholders may request that payment be made by check to the shareholders of record at the address of record. Such requests must be in writing and signed by all shareholders of record. Shareholders may also request that a redemption be made payable to someone other than the shareholder of record or be sent to an address other than the address of record. Such requests must be made in writing, be signed by all shareholders of record, and accompanied by a signature guarantee. The Transfer Agent may charge a $10.00 processing fee for each redemption check. Shares also may be redeemed through financial intermediaries from whom shares were purchased. Financial intermediaries may charge a fee for this service.

Large redemptions may disrupt the management and performance of the Funds. Each Fund reserves the right to delay delivery of your redemption proceeds -- up to seven days -- if the Fund determines that the redemption amount will disrupt its operation or performance. If you redeem more than $250,000 worth of a Fund’s shares within any 90-day period, the Fund reserves the right the pay part or all of the redemption proceeds above $250,000 in kind, i.e., in securities, rather than cash. If payment is made in kind, you may incur brokerage commissions if you elect to sell the securities, or market risk if you elect to hold them.

Systematic Withdrawal Plan. Shareholders may request an automatic, monthly, quarterly or annual redemption of shares under the Systematic Withdrawal Plan (minimum monthly amount is $500). Applications for this plan may be obtained from Accessor Funds and must be received by Accessor Funds at least ten calendar days before the first scheduled withdrawal date. Systematic Withdrawals may be discontinued at any time by a shareholder or Accessor Funds.

Low Account Balances. Accessor Funds may redeem any account with a balance of less than $500 per Fund or less than $2,000 in aggregate across the Funds if the shareholder is not part of an Automatic Investment Plan. Shareholders will be notified in writing when they have a low balance and will have 60 days to purchase additional shares to increase the balance to the required minimum. Shares will not be redeemed if an account drops below the minimum due to market fluctuations.

In the event of an emergency as determined by the SEC, Accessor Funds may suspend the right of redemption or postpone payments to shareholders. If the Board of Directors determines a redemption payment may harm the remaining shareholders of a Fund, the Fund may pay a redemption in whole or in part by a distribution in kind of securities from the Fund.

Signature Guarantees

A signature guarantee is designed to protect the shareholders and the Funds against fraudulent transactions by unauthorized persons. When a signature guarantee is required, each signature must be guaranteed by a domestic bank or trust company, credit union, broker, dealer, national securities exchange, registered securities association, clearing agency, or savings associations as defined by federal law. The transfer agent may reject a signature guarantee if the guarantor is not a member of or participant in a signature guarantee program. A notary public stamp or seal is not a signature guarantee, and will not be accepted by the Fund. Accessor Capital at its discretion reserves the right to require a signature guarantee on any transaction request.

The Fund requires a guaranteed signature for the following:

Transfer of ownership to another individual or organization.

Requests that redemption proceeds be sent to a different name or address than is registered on the account.

Requests that fed-wire instructions be changed.

Requests for name changes.

Adding or removing a shareholder on an account.

Establishing or changing certain services after the account is open.

Dividends and Distributions Dividends. Each Fund intends to distribute substantially all of its net income from dividends, interest and other income (less expenses) from investments to shareholders as dividends. The Fixed-Income Funds normally pay dividend distributions monthly. The Equity Funds normally pay dividend distributions quarterly in March, June, September and December, with the exception of International Equity Fund, which normally pays dividend distributions annually in December.

Other Distributions. Each Fund intends to distribute substantially all of its net realized long-and short-term capital gains and net realized gains from foreign currency transactions (if any) to shareholders as capital gain distributions. Each Fund normally pays capital gain distributions annually in December, although a Fund may occasionally be required to make supplemental distributions during the year.

Automatic Reinvestment of Dividends and other Distributions. All dividends and other distributions on Advisor Class Shares of a Fund will be automatically reinvested in additional Advisor Class Shares of that Fund unless a shareholder elects to receive them in cash. Shareholders that elect to receive their dividends in cash and request checks will be charged $10.00. Shareholders may alternatively choose to invest dividends or other distributions in Advisor Class Shares of any other Fund.

Valuation of Securities

The Funds generally value their securities using market quotations. However, short-term debt securities maturing in less than 60 days are valued using amortized cost, and securities for which market quotations are not readily available are valued at fair value. Because foreign securities markets are open on different days from U.S. markets, there may be instances when the NAV of a Fund that invests in foreign securities changes on days when shareholders are not able to buy or sell shares. If a security’s value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), that security may be valued by another method that the Board of Directors believes accurately reflects fair value.

Taxation

A Fund will not be subject to federal income tax to the extent it distributes investment company taxable income and gain to shareholders in a timely manner. Dividends and other distributions that shareholders receive from a Fund, whether received in cash or reinvested in additional shares of the Fund, are subject to federal income tax and may also be subject to state and local tax. Generally, dividends and distributions of net short-term capital gains and gains from certain foreign currency transactions are taxable as ordinary income, while distributions of other gains are taxable as long-term capital gains (generally, at the rate of 20% for non-corporate shareholders). The rate of tax to a shareholder on distributions from a Fund of capital gains ordinarily depends on the length of time the Fund held the securities that generated the gain, not the length of time the shareholder owned his or her shares.

Certain dividends and other distributions declared by a Fund in October, November, or December of any year are taxable to shareholders as though received on December 31 of that year if paid to them during the following January. Accordingly, those distributions will be taxed to shareholders for the year in which that December 31 falls.

A redemption of a Fund’s shares or an exchange of a Fund’s shares for shares of another Fund will be treated as a sale of the Fund’s shares, and any gain on the transaction will be subject to federal income tax.

The International Equity Fund receives dividends and interest on securities of foreign issuers that may be subject to withholding taxes by foreign governments, and gains from the disposition of those securities also may be subject thereto, which may reduce the Fund’s total return. If the amount of taxes withheld by foreign governments is material, the Fund may elect to enable shareholders to claim a foreign tax credit regarding those taxes.

After the conclusion of each calendar year, shareholders will receive information regarding the taxability of dividends and other distributions paid by the Funds during the preceding year. The Funds are required to withhold and remit to the U.S. Treasury 31% of all dividends, capital gain distributions, and redemption proceeds payable to individuals and certain other non-corporate shareholders who have not provided the Fund with a correct taxpayer identification number. Withholding at that rate also is required from dividends and capital gains distributions payable to those shareholders who are otherwise subject to backup withholding.

The foregoing is only a brief summary of certain federal income tax consequences of investing in the Funds. Please see the Statement of Additional Information for a further discussion. Shareholders should consult a tax adviser for further information regarding the federal, state, and local tax consequences of an investment in Advisor Class Shares.

FINANCIAL HIGHLIGHTS

GROWTH FUND

The financial highlights table is intended to help you understand the Fund’s financial performance for the past 5 years. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by Deloitte & Touche LLP, whose report, along with the Fund’s financial statements, are included in the annual report, which is available upon request.

VALUE FUND

SMALL TO MID CAP FUND

INTERNATIONAL EQUITY FUND

HIGH YIELD BOND FUND

The financial highlights table is intended to help you understand the Fund’s financial performance since inception of the Fund. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by Deloitte & Touche LLP, whose report, along with the Fund’s financial statements, are included in the annual report, which is available upon request.

INTERMEDIATE FIXED-INCOME FUND

SHORT-INTERMEDIATE FIXED-INCOME FUND

MORTGAGE SECURITIES FUND

U.S. GOVERNMENT MONEY FUND

APPENDIX A

The following information has been supplied by the respective preparer of the index or has been obtained from other publicly available information.

Standard & Poor’s 500 Index*

The purpose of the S&P 500 Index is to portray the pattern of common stock price movement. Construction of the index proceeds from industry groups to the whole. Since some industries are characterized by companies of relatively small stock capitalization, the index does not comprise the 500 largest companies. The S&P membership currently consists of 427 NYSE, 71 NASDAQ and 2 AMEX traded companies.

Component stocks are chosen solely with the aim of achieving a distribution by broad industry groupings for market size, liquidity and that are representative of the U.S. economy. Each stock added to the index must represent a viable enterprise and must be representative of the industry group to which it is assigned. Its market price movements must in general be responsive to changes in industry affairs.

The formula adopted by Standard & Poor’s is generally defined as a “base-weighted aggregative” expressed in relatives with the average value for the base period (1941-1943) equal to 10. Each component stock is weighted so that it will influence the index in proportion to its respective market importance. The most suitable weighting factor for this purpose is the number of shares outstanding multiplied by its market price. This gives the current market value for that particular issueand this market value determines the relative importance of the security.

Market values for individual stocks are added together to obtain their particular group market value. These group values are expressed as a relative, or index number, to the base period (1941-1943) market value. As the base period market value is relatively constant, the index number reflects only fluctuations in current market values.

S&P500/BARRA Growth Index

S&P500/BARRA Value Index:

BARRA, in collaboration with Standard and Poor’s, has constructed the S&P500/BARRA Growth Index (the “Growth Index”) and S&P500/BARRA Value Index (the “Value Index”) to separate the S&P 500 into value stocks and growth stocks.

The Growth and Value Indices are constructed by dividing the stocks in the S&P 500 according to their price-to-book ratios. The Value Index contains firms with lower price-to-book ratios and has 50 percent of the capitalization of the S&P 500. The Growth Index contains the remaining members of the S&P 500. Each of the indices is capitalization-weighted and is rebalanced semi-annually on January 1 and July 1 of each year.

Although the Value Index is created based on price-to-book ratios, the companies in the index generally have other characteristics associated with “value” stocks: low price-to-earnings ratios, high dividend yields, and low historical and predicted earnings growth. Because of these characteristics, the Value Index historically has had higher weights in the Energy, Utility, and Financial sectors than the S&P 500.

Companies in the Growth Index tend to have opposite characteristics from those in the Value Index: high earnings-to-price ratios, low dividend yields, and high earnings growth. Historically, the Growth Index has been more concentrated in Technology and Health Care than the S&P 500.

As of December 31, 2000 there were 375 companies in the Value Index and 125 companies in the Growth Index.

Wilshire 4500 Index: *

While the S&P 500 includes the preponderance of large market capitalization stocks, it excludes most of the medium- and small-size companies that comprise the remaining 17% of the capitalization of the U.S. stock market. The Wilshire 4500 Index (an unmanaged index) consists of all U.S. stocks that are not in the S&P 500 and that trade regularly on the NYSE and American Stock Exchange as well as on the Nasdaq Stock Market. The Wilshire 4500 Index is constructed from the Wilshire 5000 Equity Index, which measures the performance of all U.S. headquartered equity securities with readily available price data. Approximately 7,000 capitalization weighted security returns are used to adjust the Wilshire 5000 Equity Index. The Wilshire 5000 Equity Index was created by Wilshire Associates in 1974 to aid in performance measurement. The Wilshire 4500 Index consists of the Wilshire 5000 Equity Index after excluding the companies in the S&P 500.

Wilshire Associates view the performance of the Wilshire 5000’s securities several ways. Price and total return indices using both capital and equal weightings are computed. The unit value of these four indices was set to 1.0 on December 31, 1970.

Morgan Stanley Capital International EAFE + EMF Index: *

The MSCI EAFE + EMF Index is a market-capitalization-weighted index composed of companies representative of the market structure of 46 Developed and Emerging Market countries. The index is calculated without dividends or with gross dividends reinvested, in both U.S. dollars and local currencies.

The MSCI EAFE Index is a market-capitalization-weighted index composed of companies representative of the market structure of 20 Developed Market countries in Europe, Australasia and the Far East. The index is calculated without dividends, with net or with gross dividends reinvested, in both U.S. dollars and local currencies.

MSCI Emerging Markets Free (“EMF”) Index is a market-capitalization-weighted index composed of companies representative of the market structure of 26 Emerging Market countries in Europe, Latin America and the Pacific Basin. The MSCI EMF Index excludes closed markets and those shares in otherwise free markets which are not purchasable by foreigners.

The MSCI indices reflect stock market trends by representing the evolution of an unmanaged portfolio containing a broad selection of domestically listed companies. A dynamic optimization process which involves maximizing float and liquidity, reflecting accurately the market’s size and industry profiles, and minimizing cross ownership is used to determine index constituents. Stock selection also takes into consideration the trading capabilities of foreigners in emerging market countries.

As of December 31, 2000, the MSCI EAFE + EMF Index consisted of 1,723 companies traded on stock markets in 46 countries. The weighting of the MSCI EAFE + EMF Index by country was as follows:

Developed Markets: Australia 2.44%, Austria 0.20%, Belgium 0.79%, Denmark 0.81%, Finland 2.62%, France 10.08%, Germany 7.70%, Hong Kong 1.89%, Ireland 0.55%, Italy 4.23%, Japan 21.41%, Netherlands 5.00%, New Zealand 0.10%, Norway 0.37%, Portugal 0.46%, Singapore 0.91%, Spain 2.55%, Sweden 2.47%, Switzerland 6.22%, United Kingdom 19.01%.

Emerging Markets: Argentina 0.15%, Brazil Free 1.04%, Chile 0.34%, China Free 0.70%, Colombia 0.03%, Czech Republic 0.06%, Greece 0.57%, Hungary 0.09%, India 0.80%, Indonesia Free 0.09%, Israel 0.60%, Jordan 0.01%, Korea (South) 1.02%, Malaysia 0.70%, Mexico Free 1.00%, Pakistan 0.03%, Peru 0.03%, Philippines Free 0.11%, Poland 0.14%, Russia 0.21%, South Africa 0.95%, Sri Lanka 0.00%, Taiwan Free 1.04%, Thailand Free 0.15%, Turkey 0.28%, Venezuela 0.05%.

Unlike other broad-based indices, the number of stocks included in MSCI EAFE + EMF Index is not fixed and may vary to enable the Index to continue to reflect the primary home markets of the constituent countries. Changes in the Index will be announced when made. MSCI EAFE + EMF Index is a capitalization-weighted index calculated by Morgan Stanley Capital International based on the official closing prices for each stock in its primary local or home market. The base value of the MSCI EAFE + EMF Index was equal to 100.0 on January 1, 1988. As of December 31, 2000 the current value of the MSCI EAFE + EMF Index was 191.6.

Lehman Brothers *

Government/Credit Index

Government/Credit 1-5 Year Index

U.S. Corporate High Yield Index

Mortgage-Backed Securities Index

The Lehman Brothers Government/Credit Indices include fixed-rate debt issues rated investment grade (Baa3) or higher by Moody’s Investor Service (“Moody’s”). For issues not rated by Moody's, the equivalent Standard & Poor’s (“S&P”) rating is used, and for those not rated by S&P, the equivalent Fitch Investors Service, Inc. rating is used. These indices also include fixed-rate debt securities issued by the U.S. Government, its agencies or instrumentalities, which are generally not rated but have an implied rating greater than AAA. All issues have at least one year to maturity and an outstanding par value of at least $100 million for U.S. Government issues and $25 million for all others. Price, coupon and total return are reported for all sectors on a month-end to month-end basis. All returns are market value weighted inclusive of accrued interest.

The Lehman Brothers Government/Credit Index is made up of the Government and Credit Bond Indices.

The Government Bond Index is made up of the Treasury Bond Index (public obligations of the United States Treasury, that have remaining maturities of more than one year, excluding flower bonds and foreign targeted issues) and the Agency Bond Index (all publicly issued debt of U.S. Government agencies and quasi-federal corporations, and corporate debt or foreign debt guaranteed by the U.S. Government).

The Credit Bond Index includes publicly issued, fixed-rate, nonconvertible investment grade domestic corporate debt. Also included are Yankee bonds, which are dollar-denominated SEC registered public, nonconvertible debt issued or guaranteed by foreign sovereign governments, municipalities or governmental agencies, or international agencies.

The Government/Credit 1-5 Year Index is composed of Agency and Treasury securities and corporate securities of the type referred to in the preceding paragraph, all with maturities of one to five years.

The U.S. Corporate High Yield Index covers the universe of fixed–rate, noninvestment grade debt issues rated Ba1 or lower by Moody’s. If no Moody’s rating is available, bonds must be rated BB+ or lower by S&P; and if no S&P rating is available, bonds must be rated below investment grade by Fitch Investor’s Service. A small number of unrated bonds is included in the index; to be eligible they must have previously held a high yield rating or have been associated with a high yield issuer, and must trade accordingly. All bonds included in the High Yield Index must be dollar-denominated and nonconvertable and have at least one year remaining to maturity and an outstanding par value of at least $100 million. Yankee and global bonds (SEC registered) or issuers in non-emerging countries are included as well as original issue zeroes and step-up coupon structures.

The Mortgage-Backed Securities Index covers fixed-rate securities backed by mortgage pools of the Government National Mortgage Association (GNMA), Federal Home Loan Mortgage Corporation (FHLMC) and Federal National Mortgage Association (FNMA).

[Back Cover]

Shareholder Reports. Accessor Funds publishes Annual and Semi-Annual Reports, which contain information about each Fund’s recent performance, including:

Management’s discussion about recent market conditions, economic trends and Fund strategies that affected their performance over the recent period

Fund performance data and financial statements

Fund holdings.

Statement of Additional Information (“SAI”). The SAI contains more detailed information about Accessor Funds and each Fund. The SAI is incorporated by reference into this Prospectus, making it legally part of this Prospectus.

For shareholder inquiries or for free copies of Accessor Funds’ Annual Report, Semi-Annual Report, SAI, and other information contact your financial intermediary or:

Accessor Capital Management LP

1420 Fifth Street, #3600

Seattle, Washington 98101

800-759-3504

206-224-7420

web site: www.accessor.com

Securities and Exchange Commission

Washington, DC 20549-0102

Public Reference Section (202) 942-8090 (for inquiries regarding hours of operation only)

e-mail: publicinfo@sec.gov

web site: www.sec.gov

You may obtain copies of documents from the SEC, upon payment of duplicating fees, or view documents at the SEC’s Public Reference Room in Washington, D.C. The SAI and other information about Accessor Funds is available on the EDGAR database on the SEC’s website at www.sec.gov.

Accessor® is a registered trademark of Accessor Capital Management LP.

SEC file number: 811-06337.

The Lehman Brothers Government/Credit Index was formerly named the Lehman Brothers Government/Corporate Index until June 30, 2000.

The Lehman Brothers Government/Credit 1-5 Year Index was formerly the Lehman Brothers Government/Corporate 1-5 Index until June 30, 2000.

* "Standard & Poor’s," "S&P" and "S&P 500" are trademarks of Standard and Poor’s, a division of The McGraw-Hill Companies, Inc. The Growth Fund and Value Fund are not sponsored, endorsed, sold or promoted by Standard & Poor’s.

* "Wilshire 4500" and "Wilshire 5000" are registered trademarks of Wilshire Associates. The Small to Mid Cap Fund is not sponsored, endorsed, sold or promoted by Wilshire Associates.

* "EAFE" is a registered trademark of Morgan Stanley Capital International. The International Equity Fund is not sponsored, endorsed, sold or promoted by Morgan Stanley Capital International.

* The Intermediate Fixed-Income Fund, Short-Intermediate Fixed-Income Fund, High Yield Bond Fund and Mortgage Securities Fund are not sponsored, endorsed, sold or promoted by Lehman Brothers.