KAYNE ANDERSON MUTUAL FUNDS
SUPPLEMENT TO THE PROSPECTUS
AND STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1997
SUPPLEMENT DATED MARCH 13, 1998
This supplement amends the expense information for the Kayne Anderson
Intermediate Tax-Free Bond Fund (the "Fund"). The Adviser has agreed to further
reimburse the Fund in the current fiscal year to the extent necessary that its
ratio of total operating expenses to average net assets will not exceed 0.75%.
Kayne Anderson
Intermediate Tax-Free
Bond Fund
Shareholder Transaction Expenses:
Maximum sales charge on purchases None
(As a percentage of offering price)
Sales charge on reinvested dividends None
Redemption Fee None
Exchange Fee None
Total Annual Fund Operating Expenses:
(As a percentage of average net assets)
Management fee 0.50%
12b-1 expenses None
Other expenses after expense reimbursement 0.25%
Total operating expenses after expense reimbursement 0.75%
EXAMPLE
One Year Three Years Five Years Ten Years
Kayne Anderson
Intermediate Tax-Free
Bond Fund $8 $24 $42 $93
All remaining information remains unaffected, this change only relates to the
Adviser increasing the reimbursement to the Fund.
