FLAGSHIP ADMIRAL FUNDS INC.
UTILITY INCOME FUND
Supplement Dated January 2, 1996
to Prospectus Dated October 26, 1995
THE SECTION "HOW TO BUY SHARES CLASS A SHARES" ON PAGE 6 IS
REVISED AS FOLLOWS:
CLASS A SHARES
Total Sales Charge
___________________
Dealer
Concession or
Agency
Size of Transaction Percentage Percentage Commission as
At Public of Offering of Net Percentage of
Offering Price Price Asset Value Offering Price
___________________ ____________ ___________ ______________
Less than $50,000 4.20% 4.38% 3.70%
$50,000 to $100,000 4.00 4.18 3.50
$100,000 to $250,000 3.50 3.65 3.00
$250,000 to $500,000 2.50 2.61 2.00
$500,000 to 2.00 2.09 1.50
$1,000,000
$1,000,000 and over -- -- --*
* A CDSL may be imposed as described below.
No sales charge will be assessed on purchases by stockholders
who owned shares of the Fund on June 4, 1992
Class A Contingent Deferred Sales Load. There is no initial
sales charge on purchases of Class A shares of the Fund for
purchases aggregating $1 million or more. The Distributor pays
dealers of record commissions on those purchases in an amount
equal to the sum of 1.0% of the first $2.5 million, plus 0.50% of
the next $2.5 million, plus 0.25% of purchases over $5 million.
If you redeem any of those shares within 18 months of the end of
the calendar month of their purchase, a Class A contingent
deferred sales load ("CDSL") may be deducted from the redemption
proceeds. That sales charge will be equal to 1.0% of either (1)
the aggregate net asset value of the redeemed shares (not
including shares purchased by reinvestment of dividends or
capital gain distributions) or (2) the original cost of the
shares, whichever is less.
IN THE SECTION "HOW TO BUY SHARES DESCRIPTION OF CLASSES" ON
PAGE 7, the following sentence is added at the end of the second
paragraph: "Class A Shares may be subject to a CDSL as explained
above under 'Class A Contingent Deferred Sales Load'".
The following paragraph is added after "HOW TO BUY SHARES REDUCED
SALES CHARGES 6. WRAP FEE ACCOUNTS" ON PAGE 9: "7. Waiver of
CDSL. For purchases of Class A Shares in amounts over
$1,000,000, the contingent deferred sales load may be waived for
purchases through a broker-dealer that waives its commission."
IN THE SECTION "GENERAL INFORMATION DESCRIPTION OF SHARES" ON
PAGE 15, the fourth sentence describing the capital stock of the
Corporation is replaced by the following text:
The authorized capital stock of the Corporation consists of
600,000,000 shares of stock, par value $.001 per share, which are
divided into five (5) portfolio classes; namely, the Flagship
Utility Income Fund Portfolio Stock, The Golden Rainbow - A James
Advised Mutual Fund Portfolio Stock, the Flagship Short Term U.S.
Government Fund Portfolio Stock, the Flagship Limited Term U.S.
Government Fund Portfolio Stock and the Flagship Intermediate
U.S. Government Fund Portfolio Stock.
The Flagship Utility Income Fund Portfolio Stock consists of
200,000,000 shares, which are divided into five (5) subclasses,
designated respectively as the Flagship Utility Income Fund
Portfolio Stock, consisting of 3,500,000 shares, and the Flagship
Utility Income Fund Portfolio Stock -- Class A, Class B, Class C
and Class Y, each consisting of 49,125,000 shares. The Golden
Rainbow - A James Advised Mutual Fund Portfolio Stock consists of
100,000,000 shares which are divided into five (5) subclasses,
designated respectively as The Golden Rainbow - A James Advised
Mutual Fund Portfolio Stock, consisting of 15,000,000 shares, and
The Golden Rainbow - A James Advised Mutual Fund Portfolio Stock
-- Class A, Class B, and Class C and Class Y, each consisting of
21,250,000 shares. The Flagship Short Term U.S. Government Fund
Portfolio Stock consists of 100,000,000 shares which are
designated as the Flagship Short Term U.S. Government Fund
Portfolio Stock. The Flagship Limited Term U.S. Government Fund
Portfolio Stock portfolio class consists of 100,000,000 shares
which are divided into five (5) subclasses, designated
respectively as the Flagship Limited Term U.S. Government Fund
Portfolio Stock, consisting of 2,000,000 shares and the Flagship
Limited Term U.S. Government Fund Portfolio Stock -- Class A,
Class B, Class C and Class Y, each consisting of 24,500,000
shares. The Flagship Intermediate U.S. Government Fund Portfolio
Stock consists of 100,000,000 shares which are divided into five
(5) subclasses, designated respectively as the Flagship Intermediate
U.S. Government Fund Portfolio Stock, consisting of 2,000,000 shares
and the Flagship Intermediate U.S. Government Fund Portfolio
Stock - - Class A, Class B, Class C and Class Y, each consisting
of 24,500,000 shares.
FLAGSHIP ADMIRAL FUNDS INC.
FLAGSHIP LIMITED TERM U.S. GOVERNMENT FUND
FLAGSHIP INTERMEDIATE U.S. GOVERNMENT FUND
Supplement Dated January 2, 1996
to Prospectus Dated October 26, 1995
THE SECTION "HOW TO BUY SHARES CLASS A SHARES" ON PAGES 6-7 IS
REVISED AS FOLLOWS:
CLASS A SHARES
Total Sales Charge
___________________
Dealer
Concession or
Agency
Size of Transaction Percentage Percentage Commission as
At Public of Offering of Net Percentage of
Offering Price Price Asset Value Offering Price
__________________ ___________ ___________ ______________
Intermediate Fund
Less than $50,000 3.00% 3.09% 2.50%
$50,000 to $100,000 2.50 2.58 2.00
$100,000 to $250,000 2.00 2.06 1.50
$250,000 to $500,000 1.50 1.55 1.25
$500,000 to 1.25 1.29 1.00
$1,000,000
$1,000,000 and over -- -- --*
Limited Term Fund
Less than $50,000 2.50% 2.56% 2.00%
$50,000 to $100,000 2.00 2.05 1.60
$100,000 to $250,000 1.50 1.54 1.20
$250,000 to $500,000 1.25 1.28 1.00
$500,000 to .75 .77 .60
$1,000,000
$1,000,000 and over -- -- --*
* A CDSL may be imposed as described below.
Class A Contingent Deferred Sales Load. There is no initial
sales charge on purchases of Class A shares of either of the
Funds for purchases aggregating $1 million or more. The
Distributor pays dealers of record commissions on those purchases
in an amount equal to the sum of 1.0% of the first $2.5 million,
plus 0.50% of the next $2.5 million, plus 0.25% of purchases over
$5 million. If you redeem any of those shares within 18 months
of the end of the calendar month of their purchase, a Class A
contingent deferred sales load ("CDSL"), may be deducted from the
redemption proceeds. That sales charge will be equal to 1.0% of
either (1) the aggregate net asset value of the redeemed shares
(not including shares purchased by reinvestment of dividends or
capital gain distributions) or (2) the original cost of the
shares, whichever is less.
IN THE SECTION "HOW TO BUY SHARES DESCRIPTION OF CLASSES" ON PAGE
7, the following sentence is added at the end of the second
paragraph: "Class A Shares may be subject to a CDSL as explained
above under Class A Contingent Deferred Sales Load ".
IN THE SECTION "GENERAL INFORMATION Description of Shares" on
pages 13-14, the fourth sentence describing the capital stock of
the Corporation is replaced by the following text:
The authorized capital stock of the Corporation consists of
600,000,000 shares of stock, par value $.001 per share, which are
divided into five (5) portfolio classes; namely, the Flagship
Utility Income Fund Portfolio Stock, The Golden Rainbow - A James
Advised Mutual Fund Portfolio Stock, the Flagship Short Term U.S.
Government Fund Portfolio Stock, the Flagship Limited Term U.S.
Government Fund Portfolio Stock and the Flagship Intermediate
U.S. Government Fund Portfolio Stock.
The Flagship Utility Income Fund Portfolio Stock consists of
200,000,000 shares, which are divided into five (5) subclasses,
designated respectively as the Flagship Utility Income Fund
Portfolio Stock, consisting of 3,500,000 shares, and the Flagship
Utility Income Fund Portfolio Stock -- Class A, Class B, Class C
and Class Y, each consisting of 49,125,000 shares. The Golden
Rainbow - A James Advised Mutual Fund Portfolio Stock consists of
100,000,000 shares which are divided into five (5) subclasses,
designated respectively as The Golden Rainbow - A James Advised
Mutual Fund Portfolio Stock, consisting of 15,000,000 shares, and
The Golden Rainbow - A James Advised Mutual Fund Portfolio Stock
-- Class A, Class B, and Class C and Class Y, each consisting of
21,250,000 shares. The Flagship Short Term U.S. Government Fund
Portfolio Stock consists of 100,000,000 shares which are
designated as the Flagship Short Term U.S. Government Fund
Portfolio Stock. The Flagship Limited Term U.S. Government Fund
Portfolio Stock consists of 100,000,000 shares which are divided
into five (5) subclasses, designated respectively as the Flagship
Limited Term U.S. Government Fund Portfolio Stock, consisting of
2,000,000 shares and the Flagship Limited Term U.S. Government
Fund Portfolio Stock -- Class A, Class B, Class C and Class Y,
each consisting of 24,500,000 shares. The Flagship Intermediate
U.S. Government Fund Portfolio Stock consists of 100,000,000
shares which are divided into five (5) subclasses, designated
respectively as the Flagship Intermediate U.S. Government
Fund Portfolio Stock, consisting of 2,000,000 shares and the
Flagship Intermediate U.S. Government Fund Portfolio Stock -
- Class A, Class B, Class C and Class Y, each consisting of
24,500,000 shares.
FLAGSHIP ADMIRAL FUNDS INC.
FLAGSHIP LIMITED TERM U.S. GOVERNMENT FUND
FLAGSHIP INTERMEDIATE U.S. GOVERNMENT FUND
Supplement Dated January 2, 1996
to the Statement of Additional Information dated October 26, 1995
The following paragraph is added after "PURCHASE, REDEMPTION
AND PRICING OF SHARES PURCHASE 6. WRAP FEE ACCOUNTS" ON PAGE 19:
"7. Waiver of CDSL. For purchases of Class A Shares in amounts
over $1,000,000, the contingent deferred sales load may be waived
for purchases through a broker-dealer that waives its
commission."
FLAGSHIP ADMIRAL FUNDS INC.
THE GOLDEN RAINBOW A JAMES ADVISED MUTUAL FUND
Supplement Dated January 2, 1996
to Prospectus Dated October 26, 1995
IN THE SECTION "GENERAL INFORMATION DESCRIPTION OF SHARES" ON
PAGE 13, the third sentence describing the authorized capital
stock of Flagship Admiral Funds Inc. (the "Corporation") is
hereby replaced by the following text:
The authorized capital stock of the Corporation consists of
600,000,000 shares of stock, par value $.001 per share, which are
divided into five (5) portfolio classes; namely, the Flagship
Utility Income Fund Portfolio Stock, The Golden Rainbow - A James
Advised Mutual Fund Portfolio Stock, the Flagship Short Term U.S.
Government Fund Portfolio Stock, the Flagship Limited Term U.S.
Government Fund Portfolio Stock and the Flagship Intermediate
U.S. Government Fund Portfolio Stock.
The Flagship Utility Income Fund Portfolio Stock consists of
200,000,000 shares, which are divided into five (5) subclasses,
designated respectively as the Flagship Utility Income Fund
Portfolio Stock, consisting of 3,500,000 shares, and the Flagship
Utility Income Fund Portfolio Stock -- Class A, Class B, Class C
and Class Y, each consisting of 49,125,000 shares. The Golden
Rainbow - A James Advised Mutual Fund Portfolio Stock consists of
100,000,000 shares which are divided into five (5) subclasses,
designated respectively as The Golden Rainbow - A James Advised
Mutual Fund Portfolio Stock, consisting of 15,000,000 shares, and
The Golden Rainbow - A James Advised Mutual Fund Portfolio Stock
-- Class A, Class B, and Class C and Class Y, each consisting of
21,250,000 shares. The Flagship Short Term U.S. Government Fund
Portfolio Stock portfolio class consists of 100,000,000 shares
which are designated as the Flagship Short Term U.S. Government
Fund Portfolio Stock. The Flagship Limited Term U.S. Government
Fund Portfolio Stock consists of 100,000,000 shares which are
divided into five (5) subclasses, designated respectively as the
Flagship Limited Term U.S. Government Fund Portfolio Stock,
consisting of 2,000,000 shares and the Flagship Limited Term U.S.
Government Fund Portfolio Stock -- Class A, Class B, Class C and
Class Y, each consisting of 24,500,000 shares. The Flagship
Intermediate U.S. Government Fund Portfolio Stock consists of
100,000,000 shares which are divided into five (5) subclasses,
designated respectively as the Flagship Intermediate U.S.
Government Fund Portfolio Stock, consisting of 2,000,000 shares
and the Flagship Intermediate U.S. Government Fund Portfolio
Stock - - Class A, Class B, Class C and Class Y, each consisting
of 24,500,000 shares.
