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SAFECO GROWTH FUND SAFECO INTERMEDIATE-TERM U.S. TREASURY FUND
SAFECO EQUITY FUND SAFECO MANAGED BOND FUND
SAFECO INCOME FUND SAFECO MUNICIPAL BOND FUND
SAFECO NORTHWEST FUND SAFECO CALIFORNIA TAX-FREE INCOME FUND
SAFECO BALANCED FUND SAFECO WASHINGTON STATE MUNICIPAL
SAFECO INTERNATIONAL STOCK FUND BOND FUND
SAFECO SMALL COMPANY STOCK FUND SAFECO MONEY MARKET FUND
SUPPLEMENT TO THE PROSPECTUS DATED SEPTEMBER 30, 1996
SUPPLEMENT DATED NOVEMBER 25, 1996
The following information supplements the Funds' Advisor Class A and Class B
Prospectus:
1. The following information replaces the first sentence following the second
bullet under the subheading "Each Fund" on page 4:
"Has a minimum initial investment requirement of $1,000 for regular
accounts, $250 for individual retirement accounts ("IRAs") and
accounts established under the Uniform Gift to Minors Act ("UGMA") or
Uniform Transfer to Minors Act ("UTMA")."
2. The following information replaces the second paragraph under the heading
"How to Purchase Shares" on page 48:
"The minimum initial investment is $1,000 (IRA, UGMA and UTMA $250).
The minimum additional investment is $100 for all accounts, except for
UGMA or UTMA Automatic Investment Method ("AIM") accounts opened with
an initial investment of $250 or more. These accounts have a minimum
additional investment of only $50. Minimum additional investments are
negotiable for retirement accounts other than IRAs. Except as noted
above in connection with UGMA and UTMA accounts, no minimum initial
investment is required to establish the Automatic Investment Method or
Payroll Deduction Plan."
3. The following information replaces the sentence under the subheading
"Automatic Investment Method (AIM)" on page 55:
"AIM enables you to make regular monthly investments by authorizing
SAFECO Services to withdraw a specific amount from your bank account
and invest the amount in any Fund. AIM has a minimum of $100 per
withdrawal per Fund for all accounts ( except UGMA and UTMA accounts
which have a lower $50 minimum
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for additional investments, provided that the account was opened with
an initial investment of at least $250)."
The following information supplements the Trusts' Advisor class Prospectus:
4. The following information replaces the discussion following the first
sentence in Item 3, page 29 under the subheading "Common Investment
Practices of the Stock Funds":
"The Stock Funds may purchase these short-term securities as a cash
management technique under those circumstances where it has cash to
manage for a short time period, for example, after receiving proceeds
from the sale of securities, dividend distributions from portfolio
securities or cash from the sale of Fund shares to investors. With
respect to repurchase agreements, each Stock Fund will invest no more
than 5% of its total assets in repurchase agreements and will not
purchase repurchase agreements that mature in more than seven days.
Counterparties of foreign repurchase agreements may be less
creditworthy than U.S. counterparties."
5. The following information replaces the discussion following the first
sentence in Item 4, page 32 under the heading "Investment Policies of the
Intermediate Treasury Fund":
"The Intermediate Treasury Fund may purchase these short-term
securities as a cash management technique under those circumstances
where it has cash to manage for a short time period, for example,
after receiving proceeds from the sale of securities, interest
payments from portfolio securities or cash from the sale of Fund
shares to investors. Interest earned from these short-term securities
will be taxable to investors as ordinary income when distributed."
6. The following information replaces the discussion following the first
sentence in Item 8, page 35 under the heading "Investment Policies of the
Managed Bond Fund":
"The Managed Bond Fund may purchase these short-term securities as a
cash management technique under those circumstances where it has cash
to manage for a short time period, for example, after receiving
proceeds from the sale of securities, interest payments or dividend
distributions from portfolio securities or cash from the sale of
Managed Bond Fund shares to investors. Interest earned from these
short-term securities will be taxable to investors as ordinary income
when distributed. With respect to repurchase agreements, the Managed
Bond Fund will invest no more than 5% of its total assets in
repurchase agreements, and will not purchase repurchase agreements
which mature in more than seven days."
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7. The following information replaces the discussion following the first
sentence in Item 4, page 39 under the heading "Investment Policies of the
Tax-Exempt Income Funds":
"Such shares will only be purchased as a medium for a Fund's
short-term investments if SAM determines that they provide a better
combination of yield and liquidity than a direct investment in
short-term, tax-exempt securities. Each Tax-Exempt Income Fund will
not invest more than 10% of its total assets in shares issued by other
investment companies, will not invest more than 5% of its total assets
in a single investment company, and will not purchase more than 3% of
the outstanding voting securities of a single investment company."
8. The following information replaces the discussion following the first
sentence in Item 7, page 40 under the heading "Investment Policies of the
Tax-Exempt Income Funds":
"A Tax-Exempt Income Fund may purchase these short-term securities as
a cash management technique under those circumstances where it has
cash to manage for a short time period, for example, after receiving
proceeds from the sale of securities, dividend distributions from
portfolio securities, or cash from the sale of Fund shares to
investors. Interest earned from these short-term securities will be
taxable to investors as ordinary income when distributed."
