Dear Shareholder: The following provides important information about the
reorganization of the Key Mutual Funds. This information is important and
should be kept with a copy of your Prospectus.
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KeyFunds
SBSF Fund
SBSF Convertible Securities Fund
SBSF Capital Growth Fund
Supplement Dated January 2, 1998
to the Prospectus Dated April 1, 1997
as previously supplemented
On December 2, 1997, the Board of Directors unanimously recommended a
reorganization and liquidation of the Funds. The Board's recommendations and
more information are more fully described in the Combined Prospectus/Proxy
Statement that has been filed with the Securities and Exchange Commission, and
when effective, will be provided to shareholders of record on or about December
26, 1997. Shareholders will be asked to approve the reorganization and other
additional items as set forth in the Proxy Statement.
If the reorganization is approved by shareholders, shareholders of each of
the Key Mutual Funds will become shareholders of The Victory Portfolios as
indicated below:
SBSF Fund Victory Diversified Stock Fund
SBSF Convertible Securities Fund Victory Convertible Securities Fund
SBSF Capital Growth Fund Victory Special Growth Fund
As a shareholder, your Funds' assets will be exchanged for equivalent full
and fractional shares of the corresponding Victory Funds listed
above without sales charges and on a tax-free basis. Additional
purchases of new shares of any of
the above Victory Funds will include a sales charge of up to 5.75%.
Please insert this Supplement in the front of your Prospectus. If you would
like additional information or a copy of the Combined Prospectus/Proxy
Statement, you can call the Funds at 800-KEY-FUND.
2KF-SBSF-SUP3
