BENHAM ARIZONA AND NATIONAL MUNICIPAL FUNDS
Benham Arizona Municipal Intermediate-Term Fund
Benham National Tax-Free Money Market Fund
Benham National Tax-Free Intermediate-Term Fund
Benham National Tax-Free Long-Term Fund
SUPPLEMENT dated June 21, 1996 to Prospectus dated September 30, 1995
1. On page 21, in the section captioned "SHARE PRICE", the fourth paragraph is
deleted. All remaining references in the Prospectus to the net asset value
as being calculated at "12 p.m. Pacific Time for Benham Target Maturities
Trust and 1 p.m. Pacific Time for all other Benham funds" are hereby
changed to "the close of the Exchange, usually 12 p.m. Pacific Time for the
Benham Target Maturities Trust and 1 p.m. Pacific Time for all other Benham
funds."
2. On page 25, in the subsection captioned "PROCESSING YOUR PURCHASE," the
sole paragraph is amended to read as follows:
Shares will be purchased at the next NAV calculated after your investment
is received and accepted by the Benham Group or an authorized subtransfer
agent. An investment received and accepted before the close of business of
the Exchange, normally 1:00 p.m. Pacific Time, will be included in your
account balance the same day. If the investment is received after the close
of business of the Exchange, usually 1:00 p.m. Pacific Time, it will be
credited to your account the following business day.
3. On page 25 of the Prospectus, the following sentence is to be inserted
under the sub-heading "TELEPHONE TRANSACTIONS" after the last sentence of
the first paragraph:
ONCE YOUR TELEPHONE ORDER HAS BEEN PLACED, IT MAY NOT BE MODIFIED OR
CANCELED.
4. On page 27, the following replaces the last two sentences of the last
paragraph under the sub-heading "OPEN ORDER SERVICE":
All orders and cancellation of orders received by one hour prior to the
close of the Exchange, usually 12 p.m. Pacific Time, will be considered to
be effective the same day. All orders and cancellation of orders not
received one hour prior to the close of the Exchange, usually 12 p.m.
Pacific Time, will be considered effective the following business day.
5. On page 28, in the subsection captioned "BROKER-DEALER TRANSACTIONS," the
first paragraph is amended to read as follows:
The Benham Group charges no sales commissions, or "loads," of any kind.
However, investors who do not choose to purchase or sell Fund shares
directly from BFS may purchase or sell Fund shares through registered
broker-dealers and other qualified service providers, who may charge
investors fees for their services. These broker-dealers and service
providers generally provide shareholder, administrative and/or accounting
services which would otherwise be provided by BFS as the Funds' transfer
agent. To accommodate these investors, BMC and its affiliates have entered
into agreements with some broker-dealers and service providers to provide
these services. Fees for such services are borne normally by a Fund at the
rates normally paid to BFS, which would otherwise provide the services. Any
distribution expenses associated with these arrangements are borne by BMC.
<PAGE>
BENHAM FLORIDA AND NATIONAL MUNICIPAL FUNDS
Benham Florida Municipal Money Market Fund
Benham Florida Municipal Intermediate-Term Fund
Benham National Tax-Free Money Market Fund
Benham National Tax-Free Intermediate-Term Fund
Benham National Tax-Free Long-Term Fund
SUPPLEMENT dated June 21, 1996 to Prospectus dated September 30, 1995
1. On page 23, the fourth paragraph under the heading "SHARE PRICE" is
deleted. All remaining references in the Prospectus to the net asset value
being calculated at "12 p.m. Pacific Standard Time for Benham Target
Maturities Trust and 1 p.m. Pacific Time for all other Benham funds" are
hereby changed to "the close of the Exchange, usually 12 p.m. Pacific Time
for Benham Target Maturities and 1 p.m. Pacific Time for all other Benham
funds."
2. On page 27, under the sub-heading "PROCESSING YOUR PURCHASE", the second
and third sentences are replaced with the following:
An investment received and accepted before the close of business of the
Exchange, normally 1:00 p.m. Pacific Time, will be included in your account
balance the same day. If the investment is received after the close of
business of the Exchange, usually 1:00 p.m. Pacific Time, it will be
credited to your account the following business day.
3. On page 27, the following sentence is to be inserted under the sub-heading
"TELEPHONE TRANSACTIONS" after the last sentence of the first paragraph.
ONCE YOUR TELEPHONE ORDER HAS BEEN PLACED , IT MAY NOT BE MODIFIED OR
CANCELED.
4. On page 29, of the Prospectus, the following replaces the last two
sentences of the last paragraph under the sub-heading "OPEN ORDER SERVICE".
All orders and cancellation of orders received by one hour prior to the
close of the Exchange, usually 12 p.m. Pacific Time, will be considered to
be effective the same day. All orders and cancellation of orders not
received one hour prior to the close of the Exchange, usually 12 p.m.
Pacific Time, will be considered effective the following business day.
5. On page 30, in the subsection captioned "BROKER-DEALER TRANSACTIONS," the
first paragraph is amended to read as follows:
The Benham Group charges no sales commissions, or "loads," of any kind.
However, investors who do not choose to purchase or sell Fund shares
directly from BFS may purchase or sell Fund shares through registered
broker-dealers and other qualified service providers, who may charge
investors fees for their services. These broker-dealers and service
providers generally provide shareholder, administrative and/or accounting
services which would otherwise be provided by BFS as the Funds' transfer
agent. To accommodate these investors, BMC and its affiliates have entered
into agreements with some broker-dealers and service providers to provide
these services. Fees for such services are borne normally by a Fund at the
rates normally paid to BFS, which would otherwise provide the services. Any
distribution expenses associated with these arrangements are borne by BMC.
<PAGE>
BENHAM MUNICIPAL FUNDS
Benham National Tax-Free Money Market Fund
Benham National Tax-Free Intermediate-Term Fund
Benham National Tax-Free Long-Term Fund
SUPPLEMENT dated June 21, 1996 to Prospectus dated September 30, 1995
1. On page 17 of the Prospectus, the fourth paragraph under the heading "SHARE
PRICE" is deleted. All remaining references in the Prospectus to the net
asset value being calculated at "12 p.m. Pacific Standard Time for Benham
Target Maturities Trust and 1 p.m. Pacific Time for all other Benham funds"
are hereby changed to "the close of the Exchange, usually 12 p.m. Pacific
Time for Benham Target Maturities and 1 p.m. Pacific Time for all other
Benham funds."
2. On page 21 of the Prospectus under the sub-heading "PROCESSING YOUR
PURCHASE", the second and third sentences are replaced with the following:
An investment received and accepted before the close of business of the
Exchange, normally 1:00 p.m. Pacific Time, will be included in your account
balance the same day. If the investment is received after the close of
business of the Exchange, usually 1:00 p.m. Pacific Time, it will be
credited to your account the following business day.
3. On page 21 of the Prospectus, the following sentence is to be inserted
under the sub-heading "TELEPHONE TRANSACTIONS" after the last sentence
of the first paragraph.
ONCE YOUR TELEPHONE ORDER HAS BEEN PLACED , IT MAY NOT BE MODIFIED OR
CANCELED.
4. On page 23 of the Prospectus, the following replaces the last two sentences
of the last paragraph under the sub-heading "OPEN ORDER SERVICE":
All orders and cancellation of orders received by one hour prior to the
close of the Exchange, usually 12 p.m. Pacific Time, will be considered to
be effective the same day. All orders and cancellation of orders not
received one hour prior to the close of the Exchange, usually 12 p.m.
Pacific Time, will be considered effective the following business day.
5. On page 24, under the subheading "BROKER-DEALER TRANSACTIONS," the first
paragraph is hereby amended to read as follows:
The Benham Group charges no sales commissions, or "loads," of any kind.
However, investors who do not choose to purchase or sell Fund shares
directly from BFS may purchase or sell Fund shares through registered
broker-dealers and other qualified service providers, who may charge
investors fees for their services. These broker-dealers and service
providers generally provide shareholder, administrative and/or accounting
services which would otherwise be provided by BFS as the Funds' transfer
agent. To accommodate these investors, BMC and its affiliates have entered
into agreements with some broker-dealers and service providers to provide
these services. Fees for such services are borne normally by a Fund at the
rates normally paid to BFS, which would otherwise provide the services. Any
distribution expenses associated with these arrangements are borne by BMC.
