SUPPLEMENT TO THE
SPARTAN(registered trademark) SHORT-
INTERMEDIATE GOVERNMENT FUND AND SPARTAN(registered trademark) GOVERNMENT
INCOME FUND JUNE 21, 1997 PROSPECTUS
The following information replaces similar information found in the
"Investment Principles and Risks" section beginning on page 12.
INTEREST RATE RISK. In general, bond prices rise when interest rates fall
and fall when interest rates rise. Longer-term bonds are usually more
sensitive to interest rate changes. In other words, the longer the maturity
of a bond, the greater the impact a change in interest rates is likely to
have on the bond's price. In addition, short-term interest rates and
long-term interest rates do not necessarily move in the same direction. A
short-term bond tends to react to changes in short-term interest rates and
a long-term bond tends to react to changes in long-term interest rates.
PREPAYMENT RISK. Many types of debt securities, including mortgage
securities, are subject to prepayment risk. Prepayment risk occurs when the
issuer of a security can prepay principal prior to the security's maturity.
Securities subject to prepayment risk generally offer less potential for
gains during a declining interest rate environment, and similar or greater
potential for loss in a rising interest rate environment. In addition, the
potential impact of prepayment features on the price of a debt security may
be difficult to predict and result in greater volatility.
