Filed pursuant to Rule 497(k)(1)(i)
January 14, 2000
PROFILE
CitiFunds Money Market Funds
CitiFunds Cash Reserves
CitiFunds U.S. Treasury Reserves
CitiFunds Tax Free Reserves
CitiFunds California Tax Free Reserves
CitiFunds Connecticut Tax Free Reserves
CitiFunds New York Tax Free Reserves
This profile summarizes key information about CitiFunds Money Market Funds that
is included in the Funds' prospectus. The Funds' prospectus includes additional
information about the Funds, including a more detailed description of the risks
associated with investing in the Funds that you may want to consider before you
invest. You may obtain the prospectus and other information about the Funds at
no cost by calling 1-800-625-4554.
<PAGE>
Table of Contents
The Funds' Goals.........................................x
The Funds' Main Investment Strategies....................x
The Main Risks of Investing in the Funds.................x
Who May Want to Invest..............................x
How the Funds have Performed........................x
The Funds' Fees and Expenses.............................x
Management of the Funds..................................x
How to Buy Shares........................................x
How to Sell Shares.......................................x
Fund Distributions and Tax Information...................x
Shareholder Services.....................................x
<PAGE>
The Funds' Goals
CitiFunds Cash Reserves seeks to provide shareholders with liquidity and as
high a level of current income as is consistent with preservation of capital.
CitiFunds U.S. Treasury Reserves seeks to provide its shareholders with
liquidity and as high a level of current income from U.S. government
obligations as is consistent with the preservation of capital.
CitiFunds Tax Free Reserves seeks to provide its shareholders with high levels
of current income exempt from federal income taxes, preservation of capital and
liquidity.
CitiFunds California Tax Free Reserves seeks to provide its shareholders with
high levels of current income exempt from both federal and California personal
income taxes, preservation of capital and liquidity.
CitiFunds Connecticut Tax Free Reserves seeks to provide its shareholders with
high levels of current income exempt from both federal and Connecticut personal
income taxes, preservation of capital and liquidity.
CitiFunds New York Tax Free Reserves seeks to provide its shareholders with
high levels of current income exempt from federal, New York State and New York
City personal income taxes, preservation of capital and liquidity.
Of course, there is no assurance that any of the Funds will achieve their
goals.
Each of the Funds described in this profile is a money market fund.
Money market funds must follow strict rules about the quality,
maturity and other features of the securities they purchase.
The Funds also try to maintain a share price of $1.00 while paying
income to shareholders. However, no money market fund guarantees
that you will receive your money back.
<PAGE>
The Funds' Main Investment Strategies
CitiFunds Cash Reserves invests only in high quality, short-term money market
instruments denominated in U.S. dollars. These may include obligations of U.S.
and non-U.S. banks, commercial paper and asset backed securities, short-term
obligations of the U.S. government and its agencies and instrumentalities, and
repurchase agreements for these obligations, and obligations issued or
guaranteed by the governments of Western Europe, Australia, Japan and Canada.
CitiFunds U.S. Treasury Reserves invests in U.S. Treasury bills, notes and
bonds; Treasury receipts; and securities issued by U.S. government agencies and
instrumentalities that are backed by the full faith and credit of the U.S.
government.
CitiFunds Tax Free Reserves
CitiFunds California Tax Free
Reserves
CitiFunds Connecticut Tax Free
Reserves
CitiFunds New York Tax Free
Reserves
- ------------------------------------------
MUNICIPAL OBLIGATIONS
Municipal obligations are debt
securities issued by states, cities and
towns and other political or public
entities or agencies or qualifying
issuers. The interest paid on these debt
securities is free from federal income
tax, but is generally lower than the
interest paid on taxable securities.
- ------------------------------------------
Each of these Funds invests, under normal market conditions, at least 80% of its
assets in high quality municipal obligations and in participation interests in
these obligations issued by banks, insurance companies and other financial
institutions. Each of these Funds may invest more than 25% of its assets in
participation interests in municipal obligations that are secured by bank
letters of credit or guarantees. Each of these Funds may invest up to 20% of
its assets in high quality securities that pay interest that is subject to
federal income tax or federal alternative minimum tax.
Under normal market conditions, CITIFUNDS CALIFORNIA TAX FREE RESERVES invests
at least 65% of its assets in municipal obligations that pay interest that is
exempt from both federal and California personal income taxes. These may
include obligations of Puerto Rico and other U.S. territories. When acceptable
California municipal obligations are not available, the Fund may purchase other
municipal obligations. The interest on these securities may be subject to
California personal income taxes.
Under normal market conditions, CITIFUNDS CONNECTICUT TAX FREE RESERVES invests
at least 65% of its assets in municipal obligations that pay interest that is
exempt from both federal and Connecticut personal income taxes. These may
include obligations of Puerto Rico and other U.S. territories. When acceptable
Connecticut municipal obligations are not available, the Fund may purchase
other municipal obligations. The interest on these securities may be subject to
Connecticut personal income taxes.
<PAGE>
Under normal market conditions, CITIFUNDS NEW YORK TAX FREE RESERVES invests at
least 65% of its assets in municipal obligations that pay interest that is
exempt from federal, New York State and New York City personal income taxes.
These may include obligations of Puerto Rico and other U.S. territories. When
acceptable New York municipal obligations are not available, the Fund may
purchase other municipal obligations. The interest on these securities may be
subject to New York personal income taxes.
YOU CAN FIND MORE INFORMATION ABOUT THE FUNDS' INVESTMENTS IN THE FUNDS' ANNUAL
AND SEMI-ANNUAL REPORTS TO SHAREHOLDERS. IN ADDITION, THE FUNDS' ANNUAL REPORTS
CONTAIN DISCUSSIONS OF THE MARKET CONDITIONS AND INVESTMENT STRATEGIES THAT
SIGNIFICANTLY AFFECTED THE FUNDS' PERFORMANCE DURING THE LAST FISCAL YEAR. YOU
MAY OBTAIN THESE REPORTS AT NO COST BY CALLING 1-800-625-4554.
<PAGE>
The Main Risks of Investing in the Funds
Investing in a mutual fund involves risk. Although the Funds seek to preserve
the value of your investment at $1.00 per share, it is possible to lose money
by investing in the Funds. An investment in a Fund is not a deposit of Citibank
and is not insured or guaranteed by the Federal Deposit Insurance Corporation
or any other government agency.
The principal risks of investing in the Funds are described below. Please note
that there are many other factors which could adversely affect your investment
and that could prevent a Fund from achieving its goals, which are not described
here. Before investing, you should carefully consider the risks that you will
assume.
o YIELD FLUCTUATION: The Funds invest in short term money market
instruments. As a result, the amount of income paid to you by the Funds
will vary depending on day-to-day variations in short-term interest rates.
Investing in high quality, short-term instruments may result in a lower
yield (the income on your investment) than investing in lower quality or
longer-term instruments.
o CREDIT RISK: The Funds invest in high quality debt securities, meaning
securities that are rated, when the Funds buy them, in one of the two
highest short-term rating categories by nationally recognized rating
agencies or, in Citibank's opinion, are of comparable quality. However, it
is possible that some issuers will be unable to make the required payments
on debt securities held by the Funds. Debt securities also fluctuate in
value based on the perceived creditworthiness of issuers. A default on an
investment held by a Fund, or a significant decline in the value of a Fund
investment, could cause the value of your investment in the Fund to
decline.
o INTEREST RATE AND MARKET RISK: A major change in interest rates or a
significant decline in the market value of a Fund's investment could cause
the value of your investment in the Fund, or its yield, to decline.
o YEAR 2000 RISK: The Funds could be adversely affected if the computer
systems used by the Funds or their service providers have not been
programmed to process information accurately on or after January 1, 2000.
The Funds, and their service providers, have made efforts to resolve any
potential Year 2000 problems. While it is likely these efforts will be
successful, the failure to implement any necessary modifications could
have an adverse impact on the Funds. The Funds also could be adversely
affected if the issuers of securities held by the Funds or the markets on
which such securities are traded do not solve their Year 2000 problems, or
if it costs them large amounts of money to solve these problems.
<PAGE>
o $1.00 Net Asset Value. In order to maintain a $1.00 per share net asset
value, a Fund could reduce the number of its outstanding shares. The
Fund could do this if there were a default on, or significant decline in
value of, an investment held by the Fund. If this happened, you would own
fewer shares. By investing in a Fund, you agree to this reduction should
it become necessary.
THE FOLLOWING ADDITIONAL RISKS ARE SPECIFIC TO CERTAIN OF THE CITIFUNDS MONEY
MARKET FUNDS:
CITIFUNDS CASH RESERVES
o FOREIGN SECURITIES: Investors in Cash Reserves should be aware that
investments in foreign securities involve risks relating to political,
social and economic developments abroad, as well as risks resulting from
the differences between the regulations to which U.S. and non-U.S. issuers
and markets are subject. These risks may include expropriation of assets,
confiscatory taxation, withholding taxes on dividends and interest paid on
fund investments, fluctuations in currency exchange rates, currency
exchange controls and other limitations on the use or transfer of assets
by the Fund or issuers of securities, and political or social instability.
In addition, foreign companies may not be subject to accounting standards
or governmental supervision comparable to U.S. companies, and there may be
less public information about their operations. Foreign markets may be
less liquid and more volatile than U.S. markets. As a result, there may be
rapid changes in the value of foreign securities. Non-U.S. markets also
may offer less protection to investors such as the Fund.
o CONCENTRATION IN BANK OBLIGATIONS: Cash Reserves concentrates in bank
obligations. This means that an investment in Cash Reserves may be
particularly susceptible to events affecting the banking industry. Banks
are highly regulated. Decisions by regulators may limit the loans banks
make and the interest rates and fees they charge, and may reduce bank
profitability. Banks also depend on being able to obtain funds at
reasonable costs to finance their lending operations. This makes them
sensitive to changes in money market and general economic conditions. When
a bank's borrowers get in financial trouble, their failure to repay the
bank will also affect the bank's financial situation.
CITIFUNDS TAX FREE RESERVES
o NON-DIVERSIFIED STATUS: Tax Free Reserves is a non-diversified mutual
fund. This means that it may invest a relatively high percentage of its
assets in the obligations of a limited number of issuers. Tax Free
Reserves also may invest 25% or more of its assets in securities the
issuers of which are located in the same state, that derive income from
similar type projects or that are otherwise related. As a result, many
securities held by the Fund may be adversely affected by a particular
single economic, business, regulatory or political event. You should
consider the greater risk inherent in this policy when compared with a
more diversified mutual fund.
<PAGE>
o CONCENTRATION IN BANK PARTICIPATION INTERESTS: Tax Free Reserves
concentrates in participation interests in municipal obligations which are
issued by banks and secured by bank letters of credit or guarantees. This
means that an investment in Tax Free Reserves is particularly susceptible
to events affecting the banking industry. Banks are highly regulated.
Decisions by regulators may limit the loans banks make and the interest
rates and fees they charge, and may reduce bank profitability. Banks also
depend on being able to obtain funds at reasonable costs to finance their
lending operations. This makes them sensitive to changes in money market
and general economic conditions. When a bank's borrowers get in financial
trouble, their failure to repay the bank will also affect the bank's
financial situation.
CITIFUNDS CALIFORNIA TAX FREE RESERVES
o NON-DIVERSIFIED STATUS: California Tax Free Reserves is a non-diversified
mutual fund. This means that it may invest a relatively high percentage of
its assets in the obligations of a limited number of issuers. California
Tax Free Reserves also may invest 25% or more of its assets in securities
the issuers of which are located in the same state, that derive income
from similar type projects or that are otherwise related. As a result,
many securities held by the Fund may be adversely affected by a particular
single economic, business, regulatory or political event. You should
consider the greater risk inherent in this policy when compared with a
more diversified mutual fund.
o CONCENTRATION IN BANK PARTICIPATION INTERESTS: California Tax Free
Reserves may concentrate in participation interests in municipal
obligations which are issued by banks and secured by bank letters of
credit or guarantees. This means that an investment in California Tax Free
Reserves is particularly susceptible to events affecting the banking
industry. Banks are highly regulated. Decisions by regulators may limit
the loans banks make and the interest rates and fees they charge, and may
reduce bank profitability. Banks also depend on being able to obtain funds
at reasonable costs to finance their lending operations. This makes them
sensitive to changes in money market and general economic conditions. When
a bank's borrowers get in financial trouble, their failure to repay the
bank will also affect the bank's financial situation.
o CALIFORNIA ISSUERS: Because the Fund invests a high percentage of its
assets in municipal obligations of issuers located in California, the Fund
is more exposed to events that adversely affect issuers in California. As
a result, this Fund has more risk than a broadly diversified money market
fund.
You should be aware of special economic factors affecting California which
are summarized below. The Fund has obtained this information from the
issuers of California municipal obligations, and is not responsible for
its accuracy or timeliness.
Issuers of California municipal obligations experienced severe financial
difficulties in the early 1990's. Although California's economy has been
<PAGE>
recovering, there is no assurance that this will continue. Recent global
economic events have begun to hurt the earnings of companies in
California. If California were to experience economic difficulties again,
the value of your investment in the Fund could decline. The Fund also
could have difficulty in finding high quality California municipal
obligations available for investment. This could cause the amount of the
Fund's income that is subject to California tax to increase. Because many
municipal issuers depend on real estate as a source of revenue,
dislocations in the real estate market may cause the Fund similar
problems, as could any legislative initiatives resulting in the reduction
of state revenues or allocations of revenues to local governments.
CITIFUNDS CONNECTICUT TAX FREE RESERVES
o NON-DIVERSIFIED STATUS: Connecticut Tax Free Reserves is a non-diversified
mutual fund. This means that it may invest a relatively high percentage of
its assets in the obligations of a limited number of issuers. Connecticut
Tax Free Reserves also may invest 25% or more of its assets in securities
the issuers of which are located in the same state, that derive income
from similar type projects or that are otherwise related. As a result,
many securities held by the Fund may be adversely affected by a particular
single economic, business, regulatory or political event. You should
consider the greater risk inherent in this policy when compared with a
more diversified mutual fund.
o CONCENTRATION IN BANK PARTICIPATION INTERESTS: Connecticut Tax Free
Reserves may concentrate in participation interests in municipal
obligations which are issued by banks and secured by bank letters of
credit or guarantees. This means that an investment in Connecticut Tax
Free Reserves is particularly susceptible to events affecting the banking
industry. Banks are highly regulated. Decisions by regulators may limit
the loans banks make and the interest rates and fees they charge, and may
reduce bank profitability. Banks also depend on being able to obtain funds
at reasonable costs to finance their lending operations. This makes them
sensitive to changes in money market and general economic conditions. When
a bank's borrowers get in financial trouble, their failure to repay the
bank will also affect the bank's financial situation.
o CONNECTICUT ISSUERS: Because the Fund invests a high percentage of its
assets in municipal obligations of issuers located in Connecticut, the
Fund is more exposed to events that adversely affect issuers in
Connecticut. As a result, this Fund has more risk than a broadly
diversified money market fund.
You should be aware of special economic factors affecting Connecticut
which are summarized below. The Fund has obtained this information from
the issuers of Connecticut municipal obligations, and is not responsible
for its accuracy or timeliness.
In the early 1990's, some rating agencies downgraded Connecticut's general
obligation bonds because of recurring budgetary problems. Other downgrades
<PAGE>
have occurred since that time. If similar events were to occur again, the
value of your investment in the Fund could decline. The Fund also could
have difficulty in finding high quality Connecticut municipal obligations
available for investment. This could cause the amount of the Fund's income
that is subject to Connecticut tax to increase. Because many municipal
issuers depend on real estate as a source of revenue, dislocations in the
real estate market may cause the Fund similar problems, as could any
legislative initiatives resulting in the reduction of state revenues or
allocations of them to local governments.
CITIFUNDS NEW YORK TAX FREE RESERVES
o NON-DIVERSIFIED STATUS: New York Tax Free Reserves is a non-diversified
mutual fund. This means that it may invest a relatively high percentage of
its assets in the obligations of a limited number of issuers. New York Tax
Free Reserves also may invest 25% or more of its assets in securities the
issuers of which are located in the same state, that derive income from
similar type projects or that are otherwise related. As a result, many
securities held by the Fund may be adversely affected by a particular
single economic, business, regulatory or political event. You should
consider the greater risk inherent in this policy when compared with a
more diversified mutual fund.
o CONCENTRATION IN BANK PARTICIPATION INTERESTS: New York Tax Free Reserves
may concentrate in participation interests in municipal obligations which
are issued by banks and secured by bank letters of credit or guarantees.
This means that an investment in New York Tax Free Reserves is
particularly susceptible to events affecting the banking industry. Banks
are highly regulated. Decisions by regulators may limit the loans banks
make and the interest rates and fees they charge, and may reduce bank
profitability. Banks also depend on being able to obtain funds at
reasonable costs to finance their lending operations. This makes them
sensitive to changes in money market and general economic conditions. When
a bank's borrowers get in financial trouble, their failure to repay the
bank will also affect the bank's financial situation.
o NEW YORK ISSUERS: Because the Fund invests a high percentage of its assets
in municipal obligations of issuers located in New York, the Fund is more
exposed to events that adversely affect issuers in New York. As a result,
this Fund has more risk than a broadly diversified money market fund.
You should be aware of special economic factors affecting New York which
are summarized below. The Fund has obtained this information from the
issuers of New York municipal obligations, and is not responsible for its
accuracy or timeliness.
New York State and other issuers of New York municipal obligations have
experienced financial difficulties over the past several years. Although
the New York economy has improved more recently, there is no assurance
that this will continue. Recent global economic events have begun to hurt
<PAGE>
the earnings of companies in New York. If New York were to experience
economic difficulties again, the value of your investment in the Fund
could decline. In addition, the Fund also could have difficulty in finding
high quality New York municipal obligations available for investment. This
could cause the amount of the Fund's income that is subject to New York
taxes to increase. Because many municipal issuers depend on real estate as
a source of revenue, dislocations in the real estate market may cause the
Fund similar problems, as could any legislative initiatives resulting in
the reduction of state revenues or allocations of them to local
governments.
<PAGE>
Who May Want to Invest in the Funds?
Keep in mind that an investment in a money market fund is not a complete
investment program. Also note that these Funds may not be appropriate if you
are seeking long term growth of capital or high current income and you can
tolerate daily share price fluctuation.
Consider investing in CITIFUNDS CASH RESERVES if:
o You're seeking current income and a stabilized share price.
o You want to be able to convert your investment to cash quickly with
reduced risk to principal.
o You're seeking higher returns than are usually available from U.S.
Treasury money market funds.
Consider investing in CITIFUNDS U.S. TREASURY RESERVES if:
o You're seeking current income and a stabilized share price.
o You want to be able to convert your investment to cash quickly with
reduced risk to principal.
o You want the added safety of a fund that invests only in U.S.
government securities.
Consider investing in CITIFUNDS TAX FREE RESERVES if:
o You're seeking federal tax-exempt income from your investment.*
o You're seeking current income and a stabilized share price.
o You want to be able to convert your investment to cash quickly with
reduced risk to principal.
Consider investing in CITIFUNDS CALIFORNIA TAX FREE RESERVES if:
o You're seeking tax-exempt income from your investment.*
o You're seeking current income and a stabilized share price.
o You want to be able to convert your investment to cash quickly with
reduced risk to principal.
o Your income is subject to California personal income tax.
Consider investing in CITIFUNDS CONNECTICUT TAX FREE RESERVES if:
o You're seeking tax-exempt income from your investment.*
o You're seeking current income and a stabilized share price.
o You want to be able to convert your investment to cash quickly with
reduced risk to principal.
o Your income is subject to Connecticut personal income tax.
Consider investing in CITIFUNDS NEW YORK TAX FREE RESERVES if:
o You're seeking tax-exempt income from your investment.*
o You're seeking current income and a stabilized share price.
<PAGE>
o You want to be able to convert your investment to cash quickly with
reduced risk to principal.
o Your income is subject to New York State or New York City personal
income taxes.
*Some income may be subject to tax. Please consult your personal tax
adviser. Please note that these tax-exempt funds are not appropriate if
you don't need your income to be tax-exempt or if you are investing
through a tax-deferred vehicle--such as an IRA account.
<PAGE>
How the Funds Have Performed
The following bar charts and tables can help you evaluate the risks and
performance of the Funds. The bar charts show changes in the Funds' total
returns from year to year. The tables show how the Funds' average annual
returns for the periods indicated compare to the average performance of other
money market funds for the same time periods. The Funds' performance reflects
certain fee waivers and reimbursements. If these are reduced or eliminated, the
Funds' performance may go down. For current yield information, please call
800-625-4554 toll free, or contact your account representative.
WHEN YOU CONSIDER THIS INFORMATION, PLEASE REMEMBER THAT A FUND'S PAST
PERFORMANCE IS NOT NECESSARILY AN INDICATION OF HOW IT WILL PERFORM IN THE
FUTURE.
CitiFunds Cash Reserves
o The Fund offers three classes of shares, Class A, Class B and Class N
and the bar chart shows the performance of the Class N shares only. The
chart and the related information do not take into account any sales
charges that you may be required to pay upon the sale of shares of
other classes of the Fund. Any sales charges will reduce your return.
You should also note that Class B performance is lower than that shown
for Class N shares because of higher expenses.
o The returns for Class B shown in the table have been adjusted to
reflect the maximum deferred sales charge currently applicable to the
Class B shares.
ANNUAL TOTAL RETURNS--CLASS N
[BAR CHART OMITTED--PLOT POINTS ARE AS FOLLOWS:]
1989 8.83%
1990 7.88%
1991 5.87%
1992 3.30%
1993 2.71%
1994 3.84%
1995 5.59%
1996 4.97%
1997 5.14%
1998 5.05%
1999 xxxx%
===============================================================================
FUND'S HIGHEST AND LOWEST RETURNS
For Calendar Quarters Covered By the Bar Chart
- ------------------------------------------------------
QUARTER ENDING
Highest 2.26% June 30, 1989
Lowest 0.64% March 31, 1993
<PAGE>
===============================================================================
AVERAGE ANNUAL TOTAL RETURNS (as of December 31, 1999)
- ------------------------------------------------------
1 YEAR 5 YEARS 10 YEARS
CitiFunds Cash
Reserves
Class N xxxx% xxxx% xxxx%
Class A xxxx% N/A N/A
Class B xxxx% N/A N/A
IBC/Financial Data xxxx% xxxx% xxxx%
1st Tier Taxable
Money Market Funds
Average
===============================================================================
The Fund's 7-day yield for the week ending December 31, 1999 was xxxx%.
<PAGE>
CitiFunds U.S. Treasury Reserves
ANNUAL TOTAL RETURNS
[BAR CHART OMITTED--PLOT POINTS ARE AS FOLLOWS:]
1992 3.16%
1993 2.54%
1994 3.44%
1995 5.09%
1996 4.59%
1997 4.64%
1998 4.50%
1999 xxxx%
===============================================================================
FUND'S HIGHEST AND LOWEST RETURNS
For Calendar Quarters Covered By the Bar Chart
- ------------------------------------------------------
QUARTER ENDING
Highest 1.31% June 30, 1995
Lowest 0.61% June 30, 1993
===============================================================================
AVERAGE ANNUAL TOTAL RETURNS (as of December 31, 1999)
- ------------------------------------------------------
1 YEAR 5 YEAR LIFE OF FUND
(SINCE 5/3/91)
CitiFunds U.S. xxxx% xxxx% xxxx%
Treasury Reserves
IBC/Financial Data xxxx% xxxx% *
100% U.S. Treasury
Rated Money Market
Funds Average
===============================================================================
*Information regarding performance for this period is not available.
The Fund's 7-day yield for the week ending December 31, 1999 was xxxx%.
<PAGE>
CitiFunds Tax Free Reserves
ANNUAL TOTAL RETURNS
[BAR CHART OMITTED--PLOT POINTS ARE AS FOLLOWS:]
1989 5.95%
1990 5.39%
1991 4.24%
1992 2.60%
1993 1.92%
1994 2.35%
1995 3.34%
1996 2.91%
1997 3.12%
1998 2.96%
1999 xxxx%
===============================================================================
FUND'S HIGHEST AND LOWEST RETURNS
For Calendar Quarters Covered By the Bar Chart
- ------------------------------------------------------
QUARTER ENDING
Highest 1.54% June 30, 1989
Lowest 0.43% March 31, 1994
===============================================================================
AVERAGE ANNUAL TOTAL RETURNS (as of December 31, 1999)
- ------------------------------------------------------
1 YEAR 5 YEAR 10 YEARS
CitiFunds Tax xxxx% xxxx% xxxx%
Free Reserves
IBC/Financial Data xxxx% xxxx% xxxx%
General Purpose Tax
Free Money Market
Funds Average
===============================================================================
The Fund's 7-day yield for the week ending December 31, 1999 was xxxx%.
<PAGE>
CitiFunds California Tax Free Reserves
ANNUAL TOTAL RETURNS
[BAR CHART OMITTED--PLOT POINTS ARE AS FOLLOWS:]
1993 2.30%
1994 2.66%
1995 3.57%
1996 2.93%
1997 3.02%
1998 2.82%
1999 xxxx%
===============================================================================
FUND'S HIGHEST AND LOWEST RETURNS
For Calendar Quarters Covered By the Bar Chart
- ------------------------------------------------------
QUARTER ENDING
Highest 0.93% June 30, 1995
Lowest 0.53% March 31, 1994
===============================================================================
AVERAGE ANNUAL TOTAL RETURNS (as of December 31, 1999)
- ------------------------------------------------------
1 YEAR 5 YEAR LIFE OF FUND
(SINCE 3/10/92)
CitiFunds California xxxx% xxxx% xxxx%
Tax Free Reserves
IBC/Financial Data xxxx% xxxx% *
California Tax Free
Money Market Funds
Average
===============================================================================
*Information regarding performance for this period is not available.
The Fund's 7-day yield for the week ending December 31, 1999 was xxxx%.
<PAGE>
CitiFunds Connecticut Tax Free Reserves
ANNUAL TOTAL RETURNS
[BAR CHART OMITTED--PLOT POINTS ARE AS FOLLOWS:]
1994 2.80%
1995 3.63%
1996 2.97%
1997 3.00%
1998 2.92%
1999 xxxx%
===============================================================================
FUND'S HIGHEST AND LOWEST RETURNS
For Calendar Quarters Covered By the Bar Chart
- ------------------------------------------------------
QUARTER ENDING
Highest 0.94% June 30, 1995
Lowest 0.49% March 31, 1994
===============================================================================
AVERAGE ANNUAL TOTAL RETURNS (as of December 31, 1999)
- ------------------------------------------------------
1 YEAR 5 YEAR LIFE OF FUND
(SINCE 12/1/93)
CitiFunds Connecticut xxxx% xxxx% xxxx%
Tax Free Reserves
IBC/Financial Data xxxx% xxxx% *
Connecticut Tax Free
Money Market Funds
Average
===============================================================================
*Information regarding performance for this period is not available.
The Fund's 7-day yield for the week ending December 31, 1999 was xxxx%.
<PAGE>
CitiFunds New York Tax Free Reserves
ANNUAL TOTAL RETURNS
[BAR CHART OMITTED--PLOT POINTS ARE AS FOLLOWS:]
1989 5.48%
1990 5.20%
1991 3.86%
1992 2.38%
1993 1.79%
1994 2.30%
1995 3.31%
1996 2.86%
1997 3.06%
1998 2.91%
1999 xxxx%
===============================================================================
FUND'S HIGHEST AND LOWEST RETURNS
For Calendar Quarters Covered By the Bar Chart
- ------------------------------------------------------
QUARTER ENDING
Highest 1.41% June 30, 1989
Lowest 0.42% June 30, 1993
===============================================================================
AVERAGE ANNUAL TOTAL RETURNS (as of December 31, 1999)
- ------------------------------------------------------
1 YEAR 5 YEAR 10 YEARS
CitiFunds New York xxxx% xxxx% xxxx%
Tax Free Reserves
IBC/Financial Data xxxx% xxxx% xxxx%
New York Tax Free
Money Market Funds
Average
===============================================================================
The Fund's 7-day yield for the week ending December 31, 1999 was xxxx%.
<PAGE>
The Funds' Fees and Expenses
These tables describe the fees and expenses that you may pay if you buy and
hold shares of the Funds.
Shareholder Fees (fees paid directly from your investment)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
CITIFUNDS CITIFUNDS CITIFUNDS
CITIFUNDS CASH CITIFUNDS U.S. CITIFUNDS CALIFORNIA CONNECTICUT NEW YORK
RESERVES TREASURY TAX FREE TAX FREE TAX FREE TAX FREE
CLASS A CLASS B CLASS N RESERVES RESERVES RESERVES RESERVES RESERVES
- -----------------------------------------------------------------------------------------------------
Maximum Sales Charge (Load) Imposed on Purchases
None None None None None None None None
Maximum Deferred Sales Charge (Load)
None(1) 5.00%(2) None None None None None None
- -----------------------------------------------------------------------------------------------------
</TABLE>
(1)Except that if your Class A shares were received in exchange for
Class A Shares of another CitiFund that were subject to a deferred sales
charge, you may be subject to that deferred sales charge.
(2)Class B shares have a contingent deferred sales charge (CDSC) which
is deducted from your sale proceeds if you sell your Class B shares within
five years of your original purchase of the shares. Your actual CDSC will be
the highest CDSC applicable to any CitiFund from which you have exchanged.
The Maximum applicable CDSC, as a percentage of the offering price, is shown
below:
CDSC ON SHARES
SALE DURING BEING SOLD
1st year since purchase 5%
2nd year since purchase 4%
3rd year since purchase 3%
4th year since purchase 2%
5th year since purchase 1%
6th year since purchase None
Annual Fund Operating Expenses (expenses that are deducted from Fund assets)
as a % of average net assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
CITIFUNDS CITIFUNDS CITIFUNDS
CITIFUNDS CASH CITIFUNDS U.S. CITIFUNDS TAX CALIFORNIA CONNECTICUT NEW YORK
RESERVES(1)(2) TREASURY FREE TAX FREE TAX FREE TAX FREE
CLASS A CLASS B CLASS N RESERVES(1)(2) RESERVES(1)(2) RESERVES(1) RESERVES(1) RESERVES(1)
- ---------------------------------------------------------------------------------------------------------
Management Fees
.15% .15% .15% .15% .20% .20% .20% .20%
Distribution (12b-1) Fees
.20% .75% .20% .20% .20% .20% .20% .20%
Other Expenses
.79% .79% .79% .72% .61% .58% .61% .54%
Total Annual Fund Operating Expenses
1.14% 1.69% 1.14% 1.07% 1.01% .98% 1.01% .94%
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(1)Because some of these Funds' expenses were waived or reimbursed,
the actual total operating costs for the prior year were:
CITIFUNDS CASH RESERVES - CLASS A .70%
CITIFUNDS CASH RESERVES - CLASS B 1.45%
CITIFUNDS CASH RESERVES - CLASS N .70%
CITIFUNDS U.S. TREASURY RESERVES .70%
CITIFUNDS TAX FREE RESERVES .65%
CITIFUNDS CALIFORNIA TAX FREE RESERVES .65%
<PAGE>
CITIFUNDS CONNECTICUT TAX FREE RESERVES .65%
CITIFUNDS NEW YORK TAX FREE RESERVES .65%
These fee waivers and reimbursements may be reduced or terminated at
any time.
(2)This Fund invests in securities through an underlying mutual fund.
This table reflects the expenses of both the Fund and that underlying mutual
fund.
<PAGE>
Example
This example is intended to help you compare the cost of investing in the Funds
to the cost of investing in other mutual funds. The example assumes that:
o you invest $10,000 in a Fund for the time periods indicated
o you reinvest all dividends
o you then sell all of your shares at the end of those periods
o your investment has a 5% return each year--the assumption of a 5% return
is required by the SEC for the purposes of this example and is not a
prediction of the Fund's future performance; and
o the Fund's operating expenses as shown in the Fund Fees and Expenses
tables remain the same before taking into consideration any fee waivers or
reimbursements.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
==========================================================================================
1 year 3 years 5 years 10 years
==========================================================================================
CitiFunds Cash Reserves
Class A $116 $362 $628 $1,386
Class B*
Assuming redemption at end of period $672 $833 $1,108 $1,998
Assuming no redemption $172 $533 $918 $1,998
Class N $116 $362 $628 $1,386
==========================================================================================
CitiFunds U.S. Treasury Reserves $109 $340 $590 $1,306
==========================================================================================
CitiFunds Tax Free Reserves $103 $322 $558 $1,236
==========================================================================================
CitiFunds California Tax Free Reserves $100 $312 $542 $1,201
==========================================================================================
CitiFunds Connecticut Tax Free Reserves $103 $322 $558 $1,236
==========================================================================================
CitiFunds New York Tax Free Reserves $96 $300 $520 $1,155
==========================================================================================
</TABLE>
*If you own Class B shares of CitiFunds Cash Reserves, two numbers are
given, one showing your expenses if you sold (redeemed) all your shares at the
end of each period, and one if you held onto your shares. The example also
shows the effects of the conversion of Class B shares to Class A shares after 8
years.
<PAGE>
Management of the Funds
Each Fund draws on the strength and experience of Citibank as the investment
adviser of each Fund. Citibank has been managing money since 1822. Citibank is
a wholly-owned subsidiary of Citigroup Inc.
Although Citibank and its affiliates may have banking and investment banking
relationships with the issuers of securities that are held in the Funds, in
making investment decisions for the Funds Citibank does not obtain or use
material inside information acquired by any division, department or affiliate
of Citibank in the course of those relationships. Citibank and its affiliates
may have loans outstanding that are repaid with proceeds of securities
purchased by the Funds.
How to Buy Shares
Shares of the Funds are offered continuously and purchases may be made Monday
through Friday, except on certain holidays. Shares may be purchased from the
Funds' distributor or a broker-dealer or financial institution that has an
agreement with the distributor. You must be a customer of a Shareholder
Servicing Agent to purchase shares. Shareholder Servicing Agents are financial
institutions that have entered into shareholder servicing agreements concerning
the Funds. Your Shareholder Servicing Agent will establish and maintain your
account and is the shareholder of record.
Shares are purchased at net asset value (normally $1.00 per share) the next
time it is calculated after your order is received and accepted by the
distributor. You pay no sales charge (load) to invest in the Funds except that
certain holders of Class A and Class B shares of CitiFunds Cash Reserves may
pay a sales charge when they sell their shares.
CitiFunds Cash Reserves offers three classes of shares, Class A, Class B and
Class N. Each class has different eligibility requirements and its own
combination of charges and fees. Class N, which has no sales charge, is the
share class generally available for new investments. Class A and Class B shares
are available only by exchange from the Class A or Class B shares of another
CitiFund. Class B shares convert automatically into Class A shares of Cash
Reserves approximately 8 years after your original purchase of the Class B
shares, reducing future annual expenses.
If you are new to the Funds, please complete and sign an account application
and mail it to the address on the application.
How to Sell Shares
Selling your shares in a Fund is called a "redemption" because the Fund buys
back its shares.
You may sell (redeem) your shares on any business day by placing a redemption
request with your Shareholder Servicing Agent. You may contact your Shareholder
<PAGE>
Servicing Agent in writing or, if your Shareholder Servicing Agent permits, by
telephone. All redemption requests must be in proper form, as determined by
your Shareholder Servicing Agent.
The price you receive will be the net asset value (normally $1.00 per share)
the next time it is calculated after your redemption request has been received
by your Shareholder Servicing Agent. Shares are sold without a sales charge,
except that certain holders of Class A and Class B shares of CitiFunds Cash
Reserves may pay a sales charge when they sell their shares.
You will receive your redemption proceeds in federal funds normally on the
business day on which you sell your shares but generally within seven days.
Each Fund has the right to pay your redemption proceeds by giving you
securities instead of cash. In that case, you may incur costs (such as
brokerage commissions) converting the securities into cash. You should be aware
that you may have to pay taxes on your redemption proceeds.
Holders of Class A and Class B shares of CitiFunds Cash Reserves should note
that the contingent deferred sales charges, called a CDSC, applicable to your
shares, if any, is based on the CDSC applicable to the shares of the CitiFund
that you owned before exchanging into Cash Reserves. If you have exchanged your
shares more than once, you will be charged the highest CDSC applicable to your
shares. The CDSC is based on either the original purchase price or what you
sell your shares for, whichever is less. The amount of time that you owned
shares of another CitiFund before you exchanged them for Cash Reserves shares
will be counted to determine the amount of sales charge that you owe. You may
be eligible for a waiver of the CDSC when you sell your shares. For more
information about waivers, contact your account representative or request a
copy of the Fund's Statement of Additional Information.
Fund Distributions and Tax Information
Distributions
Dividends for all shareholders of record are declared each business day. Shares
begin to accrue dividends on the day they are purchased. You will not receive
dividends for the day on which you sell your shares.
Dividends are distributed once a month, on or before the last business day of
the month. Unless you choose to receive your dividends in cash, you will
receive them as full and fractional additional Fund shares.
Tax Information
This discussion of taxes is for general information only. You should consult
your own tax adviser about your particular situation.
For Cash Reserves and U.S. Treasury Reserves, you normally will be required to
pay federal income tax on any dividends and other distributions you receive,
whether you take distributions in cash or reinvest them as additional shares.
Distributions designated as capital gains dividends will be taxed as long-term
net capital gains. Other distributions are generally taxed as ordinary income.
Some dividends paid in January may be taxable as if they had been paid the
previous December.
For the Tax Free Funds, each Fund expects that most of its net income will be
attributable to interest on municipal obligations and as a result most of each
Fund's dividends to you will not be subject to federal income tax. However,
each Fund may invest from time to time in taxable securities, and certain Fund
dividends may be subject to the federal alternative minimum tax. It is also
possible, but not intended, that a Fund may realize short-term or long-term
capital gains or losses. As a result, a Fund may designate some distributions
as income or short-term capital
<PAGE>
gain dividends, generally taxable to you as ordinary income, or capital gains
dividends, taxable to you as long-term capital gains, whether you take
distributions in cash or reinvest them in additional shares.
You should know that Fund dividends that are not taxable to you for federal
income tax purposes may still be subject to tax under the income or other tax
laws of state or local taxing authorities. For California Tax Free Reserves,
Connecticut Tax Free Reserves and New York Tax Free Reserves, each of these
Funds expects that most of its dividends to you will not be subject to personal
income tax of that particular state.
Shareholder Services
Your Shareholder Servicing Agent may make available to you certain services for
your convenience. You should check with your Shareholder Servicing Agent for
more information about the services available to you. Typical services include
exchanges with certain other CitiFunds or other funds managed by Citibank and
telephone purchases, sales and exchanges.
