BULL & BEAR ---------------------------------------------------------------
PERFORMANCE DRIVEN(R)
PROSPECTUS SUPPLEMENT DATED
SEPTEMBER 26, 1996
U.S. GOVERNMENT SECURITIES FUND
Prospectus dated November 1, 1995
On September 19, 1996, the Fund's shareholders approved a proposal to convert
the Fund from a diversified series of a registered open-end, management
investment company to a registered closed-end, diversified management investment
company. As a closed-end fund, the Fund's shares will be listed on the American
Stock Exchange and they will no longer be redeemable at net asset value.
Shareholders will not be required to turn in their share certificates or take
any other action to effectuate the conversion, currently scheduled for October
4, 1996. Shareholders who have elected to reinvest dividends and distributions
automatically will be included in the Fund's dividend reinvestment plan. We
expect that "when issued" trading of Fund shares will commence on the American
Stock Exchange approximately four business days prior to the date of conversion.
You will continue to be able to purchase and redeem shares at net asset value up
to and including one day prior to the date of conversion.
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