LEGG MASON CASH RESERVE TRUST
Supplement to the Prospectus dated April 1, 1996
Under the section entitled "Trust Expenses" on page 3 of the Prospectus, the
footnote following the Annual Trust Operating Expenses table is revised to
read:
*Effective January 10, 1997, the Trust will begin compensating Legg Mason for
distribution costs and services. The fee shown reflects determination by Legg
Mason to request payment of, and determination by the Board to pay, less than
the full amount of the authorized 12b-1 fee. If the full amount of the fee
were paid, 12b-1 fees would be 0.15% and total operating expenses would be
0.86%.
Under the section entitled "The Trust's Distributor" on page 14 of the
Prospectus, the following is inserted after the fifth sentence in the first
paragraph:
Effective January 10, 1997, the Trust will begin compensating Legg Mason
for distribution costs and services.
December 24, 1996
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LEGG MASON CASH RESERVE TRUST
Supplement to the Statement of Additional Information dated April 1, 1996
Under the section entitled "The Trust's Distributor" on page 17 of the
Statement of Additional Information, the following sentence is added to the
second paragraph:
Effective January 10, 1997, the Trust will begin compensating Legg Mason for
distribution costs and services at an annual rate equal to 0.10% of its
average daily net assets. Although the Plan provides for higher payments,
Legg Mason has agreed not to request an increase in the amount of payments for
at least two years from January 10, 1997.
December 24, 1996