Dear Shareholder:
The Key Money Market Mutual Fund Prospectus is being revised. We are
pleased to announce that the annual fund operating expenses for the Fund are
being reduced because of additional waivers and reimbursements. This information
is important and should be kept with a copy of your Prospectus.
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KeyFunds(R)
Key Money Market Mutual Fund
Supplement Dated October 28, 1997
to the Prospectus Dated April 1, 1997
as previously supplemented
The Prospectus of the Key Money Market Mutual Fund (the "Fund") is supplemented
as follows:
By deleting pages 1 and 2 of the Prospectus entitled "Fund Expenses," and
inserting the following in its place:
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FUND EXPENSES
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Expenses are one of several factors to consider when investing in the
Fund. The following table summarizes shareholder transaction expenses and annual
Fund operating expenses for the Fund.
<TABLE>
<S> <C>
Key Money Market
Mutual Fund
Shareholder Transaction Expenses: (1)
Maximum sales load imposed on purchases None
Maximum sales load imposed on reinvested dividends None
Maximum deferred sales load None
Redemption Fees None
Exchange Fees None
Annual Fund Operating Expenses After Waivers and Reimbursements:
(as a percentage of average net assets)
Management Fees (2) 0.00%
Other Expenses (3) 0.27%
-----
Total Fund Operating Expenses (2)(3) 0.27%
=====
</TABLE>
(1) Investors may be charged a fee if orders are placed through a broker o
agent, including affiliated banks and non-bank affiliates of KeyCorp. See
"Purchasing Shares."
(2) Without waivers, the "Management Fee" paid by the Fund would be 0.25% of the
average daily net assets of the Fund. This voluntary waiver of the advisory fee
may be discontinued at any time.
(3) "Other Expenses" include such expenses as administration fees, custodial and
transfer agent fees, audit, legal and other business expenses. "Other Expenses"
also include an estimate of the shareholder servicing fees that the Fund expects
to pay. The Fund may pay shareholder servicing fees at an annual rate of up to
0.25% of its average daily net assets. See "Expenses, Distribution Plan and
Shareholder Servicing Plan" for additional information. Without waivers and
reimbursements, "Other Expenses" would be .60%, and "Total Fund Operating
Expenses" would be 0.85%.
<PAGE>
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FUND EXPENSES (Cont.)
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The purpose of this table is to assist an investor in understanding the various
costs and expenses that an investor in the Fund will bear directly ("Shareholder
Transaction Expenses") and indirectly ("Annual Fund Operating Expenses"). For a
more complete description of the Fund's operating expenses, see "Expenses,
Distribution Plan and Shareholder Servicing Plan." The Adviser and/or the Fund's
administrator may, from time to time, waive fees due from the Fund or reimburse
expenses paid by the Fund in order to enhance the Fund's performance. For
further details, see the Fund's Annual Report, which is available upon request
and without charge by writing to the Fund or by calling the Fund at
800-KEY-FUND(R).
The following example is designed to help you understand the various costs you
will bear, directly and indirectly, as an investor in the Fund.
Example:
You would pay the following expenses on a $1,000 investment, assuming (1) a 5%
annual return and (2) redemption at the end of each time period:
Key Money Market Mutual Fund
1 Year $3
3 Years $9
5 Years $15
10 Years $34
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES AND ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. MOREOVER,
WHILE THE TABLE ASSUMES A 5% ANNUAL RETURN, THE FUND'S ACTUAL PERFORMANCE WILL
VARY AND MAY RESULT IN AN ACTUAL RETURN GREATER OR LESS THAN 5%. YOU WOULD PAY
THE SAME AMOUNT OF EXPENSES ON THE SAME INVESTMENT ASSUMING NO REDEMPTION AT THE
END OF EACH TIME PERIOD.
Please insert this Supplement in the front of your Prospectus. If you would like
more information, you can call the Fund at 800-KEY-FUND(R).
KF-MMM-SUP3
