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Rule 497(e) File Nos. 2-90518, 811-4006
Supplement dated June 15, 1998 to Prospectus dated March 2, 1998
CitiSelect(R) Folio 200 CitiSelect(R) Folio 400
CitiSelect(R) Folio 300 CitiSelect(R) Folio 500
The first paragraph and the first table, including footnotes (1) and (2),
contained in the "Expense Summary" section on page 6 of the Prospectus are
replaced with the following (footnotes * and ** on page 6 are not replaced):
EXPENSE SUMMARY
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The following table summarizes estimated shareholder transaction and annual
operating expenses for each Fund and its underlying Portfolios*. For more
information on costs and expenses, see "Management" -- page 21 and "General
Information -- Expenses" -- page 29.**
<TABLE>
<CAPTION>
CITISELECT CITISELECT CITISELECT CITISELECT
FOLIO 200 FOLIO 300 FOLIO 400 FOLIO 500
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<S> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES None None None None
ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET ASSETS):
Management Fees 0.75% 0.75% 0.75% 0.75%
12b-1 Fees (including service fees)(1) 0.50% 0.50% 0.50% 0.50%
Other Expenses (after fee waivers and 0.25% 0.25% 0.35% 0.35%
reimbursements)(2)
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Total Fund Operating Expenses(2) 1.50% 1.50% 1.60% 1.60%
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(1) Includes fees for distribution and shareholder servicing.
(2) Absent fee waivers and reimbursements, "Other Expenses" and "Total Fund Operating Expenses" would be
0.50% and 1.75% for CitiSelect Folio 200 and 0.27% and 1.52% for CitiSelect Folio 300.
</TABLE>
The "Example" and the text following the Example contained in the "Expense
Summary" section on page 7 of the Prospectus are replaced with the
following:
EXAMPLE: A shareholder would pay the following expenses on a $1,000
investment, assuming redemption at the end of each period indicated below:
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
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CITISELECT FOLIO 200 $15 $47 $82 $179
CITISELECT FOLIO 300 $15 $47 $82 $179
CITISELECT FOLIO 400 $16 $50 $87 $190
CITISELECT FOLIO 500 $16 $50 $87 $190
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The Example assumes a 5% annual return and that all dividends are reinvested
and reflects certain voluntary fee waivers and reimbursements. If fee
waivers and reimbursements were not made, the amounts in the example would
be $18, $55, $95, and $206 for CitiSelect Folio 200, and $15, $48, $83, and
$181 for CitiSelect Folio 300. The assumption of a 5% annual return is
required by the Securities and Exchange Commission for all mutual funds, and
is not a prediction of any Fund's future performance. THE EXAMPLE SHOULD NOT
BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES OR RETURNS OF ANY
FUND. ACTUAL EXPENSES AND RETURNS MAY BE GREATER OR LESS THAN THOSE SHOWN.
