File No. 333-61749
Rule 497(e)
STEIN ROE INSTITUTIONAL FLOATING RATE INCOME FUND
Supplement to Nov. 20, 1998 Prospectus
___________________
The prospectus is amended to delete the table at the bottom of
page 3 and replace it with the following:
The Fund began offering its Shares and began investment operations
on Dec. 17, 1998. The Fund engages in a continuous offering of
Shares. The Fund has registered 20,000,000 Shares and is
authorized as a business trust to issue an unlimited number of
Shares. Shares are offered at a price equal to the next
determined net asset value per share, which as of April 27, 1999,
was $10.06. There are no sales charges.
* Proceeds of the offering estimated at $206,000,000, and,
subject to any repurchases, will be invested by the Fund over
the course of the continuous offering.
* Offering expenses of $152,006 deducted from net proceeds to
the Fund upon completing of the initial offering on Dec. 17,
1998; estimated offering expenses of $119,529 deducted from
net proceeds to Fund upon completion of subsequent offering
of an additional 10,000,000 Shares commencing on or after May
12, 1999.
* Because Liberty Fund Distributors, Inc. will pay all
distribution costs from its own assets, net proceeds of the
offering will be available to the Fund for investment.
* Organizational expenses to remain liability of Fund and be
gradually reduced in equal installments over period not to
exceed 60 months from the date Fund commenced investment
operations on Dec. 17, 1998.
Please keep this Supplement for future reference.
This Supplement is Dated May 12, 1999