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SUPPLEMENT DATED JULY 2, 1996 TO
PROSPECTUS DATED FEBRUARY 29, 1996
FOR
CITISELECT(SM) FOLIO 200
CITISELECT(SM) FOLIO 300
CITISELECT(SM) FOLIO 400
No initial or contingent deferred sales charges are currently being imposed
on shares of the Funds.
The following paragraph should follow the Asset Class chart in the
"Investment Information -- Investment Strategy" section on page 7 of the
Prospectus.
"Each asset class includes other investments described in Appendix A or
elsewhere in this prospectus that are deemed related to the management of
that asset class. Percentage ranges shown for the equity and fixed income
classes include investment positions that seek equivalent asset class
exposure or to enhance income for that asset class. When money market
instruments are used in connection with these positions they will be counted
towards the assets of the applicable asset class and not towards the money
market class."
The "Management-International Equity Securities" section on page 17 of the
Prospectus is hereby amended in its entirety to read as follows:
"INTERNATIONAL EQUITY SECURITIES
Hotchkis & Wiley, 800 West Sixth Street, Fifth Floor, Los Angeles,
California 90017. Hotchkis & Wiley is a registered investment adviser
founded in 1980. Hotchkis & Wiley, a limited partnership has entered into a
Purchase Agreement with Merrill Lynch & Co., Inc. a Delaware corporation
("Merrill Lynch"), pursuant to which Merrill Lynch, subject to a number of
contingencies, will acquire the partnership interests in Hotchkis & Wiley.
If the purchase occurs, the Sub- Management Agreement by and among the
Funds, Citibank and Hotchkis & Wiley would automatically terminate due to
its "assignment" (as that term is defined in the 1940 Act) resulting from
the change in control of ownership of Hotchkis & Wiley. In order to ensure
that Hotchkis & Wiley will continue to provide sub-investment management
services to the Funds in the same manner as they are currently, the Fund's
Board of Trustees and shareholders will be asked to approve a new Sub-
Management Agreement.
Harry W. Hartford and Sarah H. Ketterer have been responsible for the
daily management of international equity securities since the Funds'
inception. Mr. Hartford and Ms. Ketterer manage international equity
accounts and are also responsible for international investment
research. Each serves on the Investment Policy Committee at Hotchkis &
Wiley. Prior to joining Hotchkis & Wiley, Mr. Hartford was with The
Investment Bank of Ireland, where he gained 10 years of experience in
both international and global equity management. Prior to joining
Hotchkis & Wiley, Ms. Ketterer was an associate with Bankers Trust and
an analyst at Dean Witter."
