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                                                            EXHIBIT C


                     WASATCH-HOISINGTON U.S. TREASURY FUND

INVESTMENT OBJECTIVE

         The primary investment objective of the Fund is to provide a real rate
of return over a market cycle by investing in U.S. treasury securities with an
emphasis on both income and capital appreciation.  In pursuing its objective,
at least 90% of the Fund's total assets will be invested in U.S. treasury
securities and in repurchase agreements collateralized by such securities.  The
remainder of the Fund's portfolio can also be invested in high-quality money
market instruments, cash equivalents and cash, which in the opinion of the
Manager/Sub-Adviser present only minimal credit risks.

         The Fund is not limited as to the maturities of its portfolio
investments and, to the extent consistent with its investment objectives, may
take full advantage of the entire range of maturities offered.  The
Manager/Sub-Adviser may adjust the average maturity (effective duration) of the
Fund's portfolio from time to time depending upon its assessment of national
and international economic and interest rate trends, changes in inflationary
pressures, and the value of long treasury bonds relative to inflation.  Under
normal market conditions, it is expected that over the course of a business
cycle, the effective duration of the Fund will vary from less than a year to a
maximum of 15 years.  In terms of maturity, it will range from less than a year
to a maximum of 30 years.
 
         An investment in the Fund involves certain risks.  These include the
following:
 
         Credit Risk.  Credit Risk is the risk that the issuer of a debt
security will fail to make payments on the security when due.  The
Manager/Sub-Adviser seek to limit credit risk by investing primarily in U.S.
treasury securities and in repurchase agreements collateralized by such
securities.  Treasury securities means securities which are direct obligations
of the United States treasury such as bonds, notes and bills.  Treasury bills
are issued on a discount rate basis and have a maturity of one year or less.
Longer-dated treasury securities are issued with interest paid semi-annually
to holders.  Notes are generally issued in maturities of ten years and shorter,
and bonds are currently issued with a maturity of 30 years.  Unlike corporate
bonds or government agency securities, all treasury securities are direct
obligations of the U.S. government varying only in maturity and coupon.
Treasury securities generally are viewed as carrying minimal credit risk.
 
         Interest Rate Risk.  Interest rate risk is the risk that the value of
a fixed-rate debt security will decline due to changes in market interest
rates.  Even though some interest-bearing securities are investments which
offer a stable stream of income at relatively high current yields, the prices
of such securities are affected by changes in interest rates and are therefore
subject to market price fluctuations.  The value of fixed income securities
varies inversely with changes in market interest rates.  When interest rates
rise, the value of the Fund's portfolio securities, and therefore its net asset
value per share, generally will decline.  In general, the value of fixed-rate
debt securities with longer maturities is more sensitive to changes in market
interest rates than the value of such securities with shorter maturities.
Thus, if the Fund is invested in securities with longer weighted average
maturities, the net asset value of the Fund should be expected to have greater
volatility in periods of changing market interest rates.
 
         If the Manager/Sub-Adviser forecast that interest rates will decrease,
the average maturity of the portfolio can be extended out to 30 years.  If the
Manager/Sub-Adviser forecast an increase in interest rates, a defensive policy
may be more appropriate, and the Manager/Sub-Adviser may deem it prudent to
reduce the average maturity of the portfolio to less than one year.





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         Effective duration estimates the interest rate risk (price volatility)
of a security, i.e., how much the value of the security is expected to change
with a given change in interest rates.  The longer a security's effective
duration, the more sensitive its price is to changes in interest rates.  For
example, if the interest rate were to increase by 1% on a bond with an
effective duration of 5 years, the price of the bond would decline by 5%.
Similarly, if the interest rate were to increase by 1% on a bond with an
effective duration of 15 years, the price of the bond would decline by 15%.  At
a yield of 7%, the effective duration of a 30-year U.S. treasury bond is about
13 years.  It is important to understand that, while a valuable measure,
effective duration is based on certain assumptions and has several limitations.
It is most useful as a measure of interest rate risk when interest rate changes
are small, rapid and occur equally across all the different points of the yield
curve.
 
         Repurchase Agreements.  The Fund may enter into repurchase agreements
with respect to U.S. treasury securities.  A repurchase agreement involves the
purchase by the Fund of treasury securities with the condition that after a
stated period of time the original seller (a member bank of the Federal Reserve
System or a recognized securities dealer) will buy back the same securities
("collateral") at a predetermined price or yield.  Repurchase agreements
involve certain risks not associated with direct investments in securities.  In
the event the original seller defaults on its obligation to repurchase, as a
result of its bankruptcy or otherwise, the Fund will seek to sell the
collateral, which action could involve costs or delays.  In such case, the
Fund's ability to dispose of the collateral to recover such investment may be
restricted or delayed.  While collateral will at all times be maintained in an
amount equal to the repurchase price under the agreement (including accrued
interest due thereunder), to the extent proceeds from the sale of collateral
were less than the repurchase price, the Fund would suffer a loss.  Repurchase
agreements maturing in more than seven days are considered illiquid and subject
to the Fund's restriction on investing in illiquid securities.
 
         Lending of Portfolio Securities.  Consistent with applicable
regulatory requirements, the Fund may lend its portfolio securities
(principally to broker-dealers) where such loans are callable at any time and
are continuously secured by collateral (cash or government securities) equal to
no less than the market value, determined daily, of the securities loaned.  The
Fund will receive amounts equal to interest on the securities loaned.  The Fund
will also earn income for having made the loan.  The Fund will limit its loans
of portfolio securities to an aggregate of 33 1/3% of the value of its total
assets, measured at the time such loan is made.  ("Total assets" of the Fund
includes the amount lent as well as the collateral securing such loans.)  In
determining whether the Fund meets the requirement that at least 90% of its
total assets be invested in U.S. treasury securities, the Fund will consider
the securities lent as well as the collateral securing such loans.
 
         As with other extensions of credit, there are risks of delay in
recovery or even loss of rights in the collateral should the borrower of the
securities fail financially.  However, the Fund will only enter into loan
arrangements with broker-dealers, banks or other institutions which either the
Manager or the Sub-Adviser has determined are creditworthy under guidelines
established by the Company's Board of Directors.  The Fund may also experience
a loss if, upon the failure of a borrower to return loaned securities, the
collateral is not sufficient in value or liquidity to cover the value of such
loaned securities (including accrued interest thereon).  Apart from lending its
securities, investing in repurchase agreements, and acquiring debt securities,
as described in the Prospectus and Statement of Additional Information, the
Fund will not make loans to other persons.

         The rate of turnover in the Fund will vary substantially from year to
year depending on market opportunities.  During some periods, turnover will be
well below 50% but at other times could exceed 200% annually.  While such
portfolio adjustments may require the sale of securities prior to their
maturity date, the goal of such transactions will be either to increase income
and/or to change the duration of the over-all portfolio.