Rule 497(e)
File Nos. 2-80886
811-3626
Supplement dated April 21, 1998 to the Prospectus of Citizens Trust dated
December 8, 1997:
On page 13 immediately following the paragraph entitled, "Exchange Privilege,"
insert the following:
Excessive Exchanges and Market Timing
Because excessive trading can lower a portfolio's performance and harm
shareholders, we reserve the right to temporarily suspend or permanently
terminate, with or without advance notice, the exchange privilege of any
investor who makes excessive use of the privilege (e.g. more than five
exchanges within a one year period). Your exchanges may also be restricted or
refused, and your account may be closed, if we perceive a pattern of
simultaneous orders affecting significant portions of a portfolio's assets. In
particular, a pattern of exchanges or other transactions evidencing a so-called
"market timer" investment strategy, because they may be particularly disruptive
to a portfolio, will likely result in a termination of exchange privileges or
closure of your account. You may still redeem your shares or purchase new
shares in the event that your exchange privileges are suspended or terminated.
Correction to the Prospectus dated December 8, 1997:
On page 5 the Total Return for the Citizens Income Portfolio for the year ended
June 30, 1994 should be 0.04%.
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Rule 497(e)
File Nos. 2-80886
811-3626
Supplement dated April 21, 1998 to the Statement of Additional Information of
Citizens Trust dated October 3, 1997:
At the bottom of page 1, below the table of contents, the following two
paragraphs should be added:
On December 1, 1997, the shareholders of the E-fund portfolio voted to merge
the E-fund into the Working Assets Money Market Portfolio.
As of December 5, 1997, the E-fund portfolio is no longer in existence and all
references to the E-fund portfolio in this Statement of Additional Information
should be disregarded.
In the section entitled "Turnover and Portfolio Transactions" on page 10,
delete the final two paragraphs in their entirety and substitute the following:
It is the policy of Citizens Advisers and the Trust to seek to obtain the
benefit of "soft dollar" payments for the Trust's portfolios and other clients
of Citizens Advisers when consistent with obtaining best execution and when
doing so is within the "safe harbor" created by Section 28(e) of the Securities
Exchange Act of 1934. To that end, Citizens Advisers will maintain an account
with one or more broker-dealers who agree to provide or pay for brokerage and
research services which benefit the Trust's portfolios. Sub-advisers will be
informed in writing of the names of the broker-dealers and provided with
account information to allow the execution of trades through those
broker-dealers. In the event that best execution of an equity transaction is
available through a broker-dealer which has been so identified, Citizens
Advisers or a sub-adviser, as the case may be, may place the transaction with
that broker-dealer after determining in good faith that the amount of the
commission is reasonable in relation to the value of the brokerage and research
services provided.
Any "soft dollars" generated in this fashion shall be used solely to purchase
brokerage and research services within the meaning of Section 28(e), and must
be of benefit to the Portfolio on whose behalf the transaction is made. Such
brokerage and research services, however, need not exclusively benefit the
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Portfolio on whose behalf the transaction is made, and may also benefit other
Citizens Trust portfolios or other clients of Citizens Advisers or its
sub-advisers. For these purposes, brokerage and research services mean those
which provide assistance to Citizens Advisers, or a sub-adviser, in the
performance of decision-making responsibilities. If a product or service serves
non-research as well as research functions, "soft dollars" shall be used to pay
for the product or service only to the extent that it constitutes research.
The investment management or advisory fee that the Trust pays to the Adviser
will not be reduced as a consequence of the Adviser's receipt of brokerage and
research services. While such services are not expected to reduce the expenses
of the Adviser, the Adviser would, through the use of such services, avoid the
additional expenses which would be incurred if it should attempt to develop
comparable information through its own staff or obtain such services
independently.
