Supplement dated November 30, 1997 to the Prospectus, as supplemented to date,of
COMPOSITE CASH MANAGEMENT COMPANY
MONEY MARKET PORTFOLIO
and
TAX-EXEMPT PORTFOLIO
(dated April 30, 1997)
The Prospectus referred to above is amended and supplemented as follows:
On September 23, 1997, the Fund's Board of Directors approved an amendment
to each Portfolio's fundamental investment restrictions to permit each Portfolio
to invest in restricted securities if the securities are eligible for resale
pursuant to Rule 144A under the Securities Act of 1933, as amended.
The Fund's Board also approved additional amendments to the Money Market
Portfolio's fundamental investment restrictions to permit that Portfolio (i) to
invest in (a)"asset-backed securities" (interests in a pool of assets consisting
of commercial obligations such as motor vehicle installment purchase obliga-
tions, credit card receivables and home equity loans) and (b) securities issued
by U.S. and foreign financial institutions (including brokerage, finance and
insurance companies), and state and local governments and municipalities, and
(ii) to invest in securities issued by foreign governments, their agencies or
instrumentalities or by supranational entities (such as The World Bank).
The Fund's Board also approved an amended Investment Management Agreement
for each Portfolio with Composite Research & Management Co. which would
eliminate the obligation to reimburse each Portfolio for certain expenses in
excess of specified amounts; this obligation was not in effect for the most
recently completed fiscal year of any Portfolio as expenses did not exceed the
specified amount.
The Fund's Board also approved an amendment of the Class A Distribution
Plan of each Portfolio to change that Plan from a "reimbursement" type plan to a
"compensation" type plan.
All of the foregoing matters are subject to shareholder approval. Special
shareholder meetings have been called for December 23, 1997. If approved by
shareholders, the foregoing changes to the Investment Management Agreements,
Class A Distribution Plans, and fundamental investment restrictions would become
effective at the end of December 1997, or shortly thereafter.
For further information about the foregoing or to request the Proxy
Statement of the Composite Funds for the special shareholder meetings, please
call 1-800-453-8072.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
Composite Cash Management Company
Money Market Portfolio
Tax-Exempt Portfolio
601 West Main Avenue, Suite 300
Spokane, Washington 99201-0613
