File No. 33-02633
Rule No. 497(e)
<PAGE>
STEIN ROE INCOME TRUST
MONEY MARKET FUNDS
Stein Roe Cash Reserves Fund
Stein Roe Government Reserves Fund
Supplement to Prospectus dated November 1, 1995
The Board of Trustees of Stein Roe Income Trust has called a
special meeting of shareholders of each Fund for June 18, 1996.
Among other items, the Board has directed that shareholders of
each Fund consider replacing the current investment advisory
agreement, which provides for both portfolio management and
administrative services, with separate new agreements for each
such service. If approved by shareholders, the proposed new
agreements will become effective on July 1, 1996. The current and
proposed fee schedules for each Fund are as follows:
Current
Fee Schedule Proposed Fee Schedule
(dollar amounts (dollar amounts in millions)
in millions) --------------------------------------------
Management and Management Administrative Total
Administrative Fee Fee Fee Fees
- ------------------ ---------- -------------- ----------
.500% up to $500, 250% .250% up to $500, .500% up to $500,
.450% next $500, 200% next $500, .450% next $500,
.400% thereafter .150% thereafter .400% thereafter
The new agreements would not result in a fee increase. The
provision of portfolio management and administrative services
under separate agreements would facilitate future conversion of a
Fund into the Master Fund/Feeder Fund structure. (See discussion
under Risks and Investment Considerations in the Prospectus.)
Shareholders of each Fund also are being asked to consider
changes in fundamental investment restrictions regarding borrowing
and lending that would permit the Fund to join with other Stein
Roe Funds in an "interfund lending program."
The Date of this Supplement is April 17, 1996
<PAGE>
STEIN ROE INCOME TRUST
BOND FUNDS
Stein Roe Limited Maturity Income Fund
Stein Roe Government Income Fund
Stein Roe Intermediate Bond Fund
Stein Roe Income Fund
Supplement to Prospectus dated November 1, 1995
Wire Redemption Privilege. A new Special Redemption
Privilege permits you to request a redemption from your Fund
account by phone and have the proceeds wired to your account at a
commercial bank, previously designated by you, that is a member of
the Federal Reserve System. The wire fee (currently $3.50 per
transaction) will be deducted from the amount wired. If you also
establish the Electronic Transfer Privilege, the bank account that
you designate for both Privileges must be the same. There is a
$1,000 minimum and a $100,000 maximum amount on each Telephone
Redemption by Wire. The Funds normally intend to pay proceeds of
a Telephone Redemption by Wire on the next business day.
Shareholder Proposals. The Board of Trustees of Stein Roe
Income Trust has called a special meeting of shareholders of each
Fund for June 18, 1996. Among other items, the Board has directed
that shareholders of each Fund consider replacing the current
investment advisory agreement, which provides for both portfolio
management and administrative services, with separate new
agreements for each such service. If approved by shareholders,
the proposed new agreements will become effective on July 1, 1996.
The current and proposed fee schedules are as follows:
Current
Fee Schedule Proposed Fee Schedule
(dollar amounts (dollar amounts in millions)
in millions) -----------------------------------------------
Management and Management Administrative Total
Fund Administrative Fee Fee Fee Fees
- -------- ----------------- -------------- ---------------- ---------------
Income .650% up to $100, .650% up to $100, 150% up to $100, .650% up to $100,
Fund .600% thereafter .475% thereafter .125% thereafter .600% thereafter
Govern- .600% up to $100, .450% up to $100,.150% up to $100, .600% up to $100,
ment .550% thereafter .425% thereafter .125% thereafter .550% thereafter
Income
Fund
Inter-
mediate
Bond Fund .500% .350% .150% .500%
Limited .600% up to $100, .450% up to $100,.150% up to $100, .600% up to $100,
Maturity .550% next $100, .425% next $100, .125% next $100, .550% next $100,
Income .500% thereafter .400% thereafter .100% thereafter .500% thereafter
Fund
The new agreements would not result in a fee increase. The
provision of portfolio management and administrative services
under separate agreements would facilitate future conversion of a
Fund into the Master Fund/Feeder Fund structure. (See discussion
under Risks and Investment Considerations in the Prospectus.)
Shareholders of each Fund also are being asked to consider
changes in fundamental investment restrictions regarding borrowing
and lending that would permit the Fund to join with other Stein
Roe Funds in an "interfund lending program."
Printing Error. The paragraph at the bottom of page 26 and
the top of page 27 of the Prospectus should read as follows:
"Limited Maturity Income Fund is appropriate for investors who
seek higher yields than are usually available from money market
instruments with stable prices and shorter maturities, but who
also want less net asset fluctuation than that of a longer-term
fund. Unlike money market funds, however, the Fund does not
seek to maintain a stable net asset value and may not be able to
return dollar-for-dollar the money invested. Intermediate Bond
Fund is appropriate for investors who seek high income with less
net asset value fluctuation from interest rate changes than that
of a longer-term fund, and who can accept greater levels of
credit and other risks associated with securities that are rated
below investment grade. Government Income Fund is designed for
investors who seek high income with minimum risk other than the
risk of changes in net asset value caused by fluctuations in
prevailing levels of interest rates. Income Fund is designed
for investors who seek a higher level of income and who can
accept greater levels of credit and other risks associated with
securities of medium or lower quality."
The Date of this Supplement is April 17, 1996
<PAGE>
STEIN ROE INCOME TRUST
Stein Roe Income Fund
Supplement to Defined Contribution Plans Prospectus dated November
1, 1995
The Board of Trustees of Stein Roe Income Trust has called a
special meeting of shareholders of the Fund for June 18, 1996.
Among other items, the Board has directed that shareholders of the
Fund consider replacing the current investment advisory agreement,
which provides for both portfolio management and administrative
services, with separate new agreements for each such service. If
approved by shareholders, the proposed new agreements will become
effective on July 1, 1996. The current and proposed fee schedules
are as follows:
Current
Fee Schedule Proposed Fee Schedule
(dollar amounts (dollar amounts in millions)
in millions) ------------------------------
Management and Management Administrative Total
Administrative Fee Fee Fee Fees
----------------- -------------- ---------------- ---------------
.650% up to $100, .650% up to $100, 150% up to $100, .650% up to $100,
.600% thereafter .475% thereafter .125% thereafter .600% thereafter
The new agreements would not result in a fee increase. The
provision of portfolio management and administrative services
under separate agreements would facilitate future conversion of
the Fund into the Master Fund/Feeder Fund structure. (See
discussion under Risks and Investment Considerations in the
Prospectus.)
Shareholders of the Fund also are being asked to consider
changes in fundamental investment restrictions regarding borrowing
and lending that would permit the Fund to join with other Stein
Roe Funds in an "interfund lending program."
The Date of this Supplement is April 17, 1996
<PAGE>
STEIN ROE INCOME TRUST
Stein Roe Government Income Fund
Supplement to Defined Contribution Plans Prospectus dated November
1, 1995
The Board of Trustees of Stein Roe Income Trust has called a
special meeting of shareholders of the Fund for June 18, 1996.
Among other items, the Board has directed that shareholders of the
Fund consider replacing the current investment advisory agreement,
which provides for both portfolio management and administrative
services, with separate new agreements for each such service. If
approved by shareholders, the proposed new agreements will become
effective on July 1, 1996. The current and proposed fee schedules
are as follows:
Current
Fee Schedule Proposed Fee Schedule
(dollar amounts (dollar amounts in millions)
in millions) ------------------------------
Management and Management Administrative Total
Administrative Fee Fee Fee Fees
----------------- -------------- ---------------- ---------------
. 600% up to $100, .450% up to $100,.150% up to $100, .600% up to $100,
.550% thereafter .425% thereafter .125% thereafter .550% thereafter
The new agreements would not result in a fee increase. The
provision of portfolio management and administrative services
under separate agreements would facilitate future conversion of
the Fund into the Master Fund/Feeder Fund structure. (See
discussion under Risks and Investment Considerations in the
Prospectus.)
Shareholders of the Fund also are being asked to consider
changes in fundamental investment restrictions regarding borrowing
and lending that would permit the Fund to join with other Stein
Roe Funds in an "interfund lending program."
The Date of this Supplement is April 17, 1996
<PAGE>
STEIN ROE INCOME TRUST
Stein Roe Intermediate Bond Fund
Supplement to Defined Contribution Plans Prospectus dated November
1, 1995
The Board of Trustees of Stein Roe Income Trust has called a
special meeting of shareholders of the Fund for June 18, 1996.
Among other items, the Board has directed that shareholders of the
Fund consider replacing the current investment advisory agreement,
which provides for both portfolio management and administrative
services, with separate new agreements for each such service. If
approved by shareholders, the proposed new agreements will become
effective on July 1, 1996. The current and proposed fee schedules
are as follows:
Current
Fee Schedule Proposed Fee Schedule
(dollar amounts (dollar amounts in millions)
in millions) ------------------------------
Management and Management Administrative Total
Administrative Fee Fee Fee Fees
----------------- -------------- ---------------- ---------------
.500% .350% .150% .500%
The new agreements would not result in a fee increase. The
provision of portfolio management and administrative services
under separate agreements would facilitate future conversion of
the Fund into the Master Fund/Feeder Fund structure. (See
discussion under Risks and Investment Considerations in the
Prospectus.)
Shareholders of the Fund also are being asked to consider
changes in fundamental investment restrictions regarding borrowing
and lending that would permit the Fund to join with other Stein
Roe Funds in an "interfund lending program."
The Date of this Supplement is April 17, 1996
<PAGE>
STEIN ROE INCOME TRUST
Stein Roe Cash Reserves Fund
Supplement to Defined Contribution Plans Prospectus dated November
1, 1995
The Board of Trustees of Stein Roe Income Trust has called a
special meeting of shareholders of the Fund for June 18, 1996.
Among other items, the Board has directed that shareholders of the
Fund consider replacing the current investment advisory agreement,
which provides for both portfolio management and administrative
services, with separate new agreements for each such service. If
approved by shareholders, the proposed new agreements will become
effective on July 1, 1996. The current and proposed fee schedules
for the Fund are as follows:
Current
Fee Schedule Proposed Fee Schedule
(dollar amounts (dollar amounts in millions)
in millions) ------------------------------
Management and Management Administrative Total
Administrative Fee Fee Fee Fees
- ------------------ ---------- -------------- ----------
.500% up to $500, 250% .250% up to $500, .500% up to $500,
.450% next $500, 200% next $500, .450% next $500,
.400% thereafter . . .150% thereafter .400% thereafter
The new agreements would not result in a fee increase. The
provision of portfolio management and administrative services
under separate agreements would facilitate future conversion of
the Fund into the Master Fund/Feeder Fund structure. (See
discussion under Risks and Investment Considerations in the
Prospectus.)
Shareholders of the Fund also are being asked to consider
changes in fundamental investment restrictions regarding borrowing
and lending that would permit the Fund to join with other Stein
Roe Funds in an "interfund lending program."
The Date of this Supplement is April 17, 1996
<PAGE>
STEIN ROE INCOME TRUST
Stein Roe Government Reserves Fund
Supplement to Defined Contribution Plans Prospectus dated November
1, 1995
The Board of Trustees of Stein Roe Income Trust has called a
special meeting of shareholders of the Fund for June 18, 1996.
Among other items, the Board has directed that shareholders of the
Fund consider replacing the current investment advisory agreement,
which provides for both portfolio management and administrative
services, with separate new agreements for each such service. If
approved by shareholders, the proposed new agreements will become
effective on July 1, 1996. The current and proposed fee schedules
for the Fund are as follows:
Current
Fee Schedule Proposed Fee Schedule
(dollar amounts (dollar amounts in millions)
in millions) ------------------------------
Management and Management Administrative Total
Administrative Fee Fee Fee Fees
- ------------------ ---------- -------------- ----------
.500% up to $500, 250% .250% up to $500, .500% up to $500,
.450% next $500, 200% next $500, .450% next $500,
.400% thereafter . . .150% thereafter .400% thereafter
The new agreements would not result in a fee increase. The
provision of portfolio management and administrative services
under separate agreements would facilitate future conversion of
the Fund into the Master Fund/Feeder Fund structure. (See
discussion under Risks and Investment Considerations in the
Prospectus.)
Shareholders of the Fund also are being asked to consider
changes in fundamental investment restrictions regarding borrowing
and lending that would permit the Fund to join with other Stein
Roe Funds in an "interfund lending program."
The Date of this Supplement is April 17, 1996
<PAGE>
STEIN ROE INCOME TRUST
Stein Roe Limited Maturity Income Fund
Supplement to Defined Contribution Plans Prospectus dated November
1, 1995
The Board of Trustees of Stein Roe Income Trust has called a
special meeting of shareholders of the Fund for June 18, 1996.
Among other items, the Board has directed that shareholders of the
Fund consider replacing the current investment advisory agreement,
which provides for both portfolio management and administrative
services, with separate new agreements for each such service. If
approved by shareholders, the proposed new agreements will become
effective on July 1, 1996. The current and proposed fee schedules
are as follows:
Current
Fee Schedule Proposed Fee Schedule
(dollar amounts (dollar amounts in millions)
in millions) ------------------------------
Management and Management Administrative Total
Administrative Fee Fee Fee Fees
----------------- -------------- ---------------- ---------------
.600% up to $100, .450% up to $100,.150% up to $100, .600% up to $100,
.550% next $100, .425% next $100, .125% next $100, .550% next $100,
.500% thereafter .400% thereafter .100% thereafter .500% thereafter
The new agreements would not result in a fee increase. The
provision of portfolio management and administrative services
under separate agreements would facilitate future conversion of
the Fund into the Master Fund/Feeder Fund structure. (See
discussion under Risks and Investment Considerations in the
Prospectus.)
Shareholders of the Fund also are being asked to consider
changes in fundamental investment restrictions regarding borrowing
and lending that would permit the Fund to join with other Stein
Roe Funds in an "interfund lending program."
The Date of this Supplement is April 17, 1996
