<PAGE>
THE GALAXY FUND
("GALAXY")
RETAIL SHARES OF THE
SHORT-TERM BOND FUND
INTERMEDIATE GOVERNMENT INCOME FUND
(FORMERLY INTERMEDIATE BOND FUND)
HIGH QUALITY BOND FUND
(COLLECTIVELY THE "TAXABLE BOND FUNDS")
TAX-EXEMPT BOND FUND
NEW YORK MUNICIPAL BOND FUND
CONNECTICUT MUNICIPAL BOND FUND
MASSACHUSETTS MUNICIPAL BOND FUND
RHODE ISLAND MUNICIPAL BOND FUND
(COLLECTIVELY THE "TAX-EXEMPT BOND FUNDS")
EQUITY VALUE FUND
EQUITY GROWTH FUND
EQUITY INCOME FUND
INTERNATIONAL EQUITY FUND
SMALL COMPANY EQUITY FUND
ASSET ALLOCATION FUND
(COLLECTIVELY THE "EQUITY FUNDS", AND WITH
THE TAXABLE BOND AND TAX-EXEMPT
BOND FUNDS, COLLECTIVELY THE "FUNDS")
SUPPLEMENT DATED DECEMBER 1, 1995
TO PROSPECTUSES DATED MARCH 1, 1995
<PAGE>
IMPOSITION OF FRONT-END SALES CHARGE
Effective December 1, 1995, the public offering price for Retail Shares of
the Funds will be the sum of the net asset value of the Retail Shares
purchased plus, if applicable, a maximum 3.75% front-end sales charge. In
connection with the imposition of this front-end sales charge, the
Prospectuses for Retail Shares of the Funds are supplemented as set forth
below.
THE FIRST PARAGRAPH OF THE SECTION ENTITLED "EXPENSE SUMMARY" ON PAGE 2 OF
EACH OF THE FUNDS' PROSPECTUSES HAS BEEN REVISED TO READ AS FOLLOWS:
EXPENSE SUMMARY
Set forth below is a summary of (i) the shareholder transaction expenses
imposed by each Fund with respect to its Retail Shares and (ii) the operating
expenses for Retail Shares of each Fund. SHAREHOLDER TRANSACTION EXPENSES are
charges you pay when buying or selling shares of the Funds. ANNUAL FUND
OPERATING EXPENSES are paid out of each Fund's assets and include fees for
portfolio management, maintenance of shareholder accounts, general Fund
administration, accounting and other services. Examples based on the summary
are also shown.
THE FOLLOWING SECTION ON PAGE 2 OF THE TAXABLE BOND FUNDS' PROSPECTUS HAS BEEN
REVISED TO READ AS FOLLOWS:
<TABLE>
<CAPTION>
INTERMEDIATE
SHORT-TERM GOVERNMENT HIGH QUALITY
BOND FUND INCOME FUND BOND FUND
(RETAIL SHARES) (RETAIL SHARES) (RETAIL SHARES)
--------------- --------------- ---------------
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Front End Sales Charge Imposed
on Purchases
(as a percentage of offering
price)......................... 3.75%(/1/) 3.75%(/1/) 3.75%(/1/)
Sales Load on Reinvested
Dividends...................... None None None
Deferred Sales Load............. None None None
Redemption Fees(/2/)............ None None None
Exchange Fees................... None None None
ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET
ASSETS)
Advisory Fees (After Fee
Waivers)....................... .55% .55% .55%
12b-1 Fees...................... None None None
Other Expenses (After Expense
Reimbursements)................ .55% .55% .55%
---- ---- ----
Total Fund Operating Expenses
(After Fee Waivers and Expense
Reimbursements)................ 1.10% 1.10% 1.10%
==== ==== ====
</TABLE>
- --------
(/1/) Reduced sales charges may be available. See "How to Purchase and Redeem
Shares--Public Offering Price" and "How to Purchase and Redeem Shares--
Quantity Discounts".
(/2/) Direct Investors are charged a $5.00 fee if redemption proceeds are paid
by wire.
EXAMPLE: You would pay the following expenses on a $1,000 investment,
assuming (1) deduction at the time of purchase of the maximum applicable
front-end sales load, (2) a 5% annual return, and (3) redemption of your
investment at the end of the following periods:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Short-Term Bond Fund (Retail Shares).......... $49 $71 $95 $165
Intermediate Government Income Fund (Retail
Shares)...................................... $49 $71 $95 $165
High Quality Bond Fund (Retail Shares)........ $49 $71 $95 $165
</TABLE>
S-2
<PAGE>
The Expense Summary and Example are intended to assist the investor in
understanding the costs and expenses that an investor in Retail Shares of the
Funds will bear directly or indirectly. They are based on expenses incurred by
each Fund during the last fiscal year, restated to reflect the fees which each
Fund expects to incur during the current fiscal year on its Retail Shares.
Without voluntary fee waivers and/or expense reimbursements by the Investment
Adviser, Advisory Fees would be .75%, .75% and .75% and Total Fund Operating
Expenses would be 1.47%, 1.32% and 1.35% for Retail Shares of the Short-Term
Bond, Intermediate Government Income and High Quality Bond Funds,
respectively. For more complete descriptions of these costs and expenses, see
"How to Purchase and Redeem Shares", "Management of the Funds" and
"Description of Galaxy and Its Shares" in this Prospectus and the financial
statements and notes incorporated by reference into the Statement of
Additional Information.
THE FOLLOWING SECTION ON PAGE 2 OF THE TAX-EXEMPT BOND FUNDS' PROSPECTUS HAS
BEEN REVISED TO READ AS FOLLOWS:
<TABLE>
<CAPTION>
TAX- NEW YORK CONNECTICUT MASSACHUSETTS RHODE ISLAND
EXEMPT MUNICIPAL MUNICIPAL MUNICIPAL MUNICIPAL
BOND FUND BOND FUND BOND FUND BOND FUND BOND FUND
(RETAIL (RETAIL (RETAIL (RETAIL (RETAIL
SHARES) SHARES) SHARES) SHARES) SHARES)
--------- --------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Front End Sales Charge
Imposed on Purchases
(as a percentage of
offering price)........ 3.75%(/1/) 3.75%(/1/) 3.75%(/1/) 3.75%(/1/) 3.75%(/1/)
Sales Load on Reinvested
Dividends.............. None None None None None
Deferred Sales Load..... None None None None None
Redemption Fees(/2/).... None None None None None
Exchange Fees........... None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF
AVERAGE NET ASSETS)
Advisory Fees (After Fee
Waivers)............... .53% .52% 0% 0% 0%
12b-1 Fees.............. None None None None None
Other Expenses (After
Expense
Reimbursements)........ .42% .43% .95% .95% .20%
----- ----- ----- ----- -----
Total Fund Operating
Expenses (After Fee
Waivers and Expense
Reimbursements)........ .95% .95% .95% .95% .20%
===== ===== ===== ===== =====
</TABLE>
- --------
(/1/) Reduced sales charges may be available. See "How to Purchase and Redeem
Shares--Public Offering Price" and "How to Purchase and Redeem Shares--
Quantity Discounts."
(/2/) Direct Investors are charged a $5.00 fee if redemption proceeds are paid
by wire.
EXAMPLE: You would pay the following expenses on a $1,000 investment,
assuming (1) deduction at the time of purchase of the maximum applicable
front-end sales load, (2) a 5% annual return, and (3) redemption of your
investment at the end of the following periods:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Tax-Exempt Bond Fund (Retail Shares).......... $47 $66 $87 $148
New York Municipal Bond Fund (Retail Shares).. $47 $66 $87 $148
Connecticut Municipal Bond Fund (Retail
Shares)...................................... $47 $66 $87 $148
Massachusetts Municipal Bond Fund (Retail
Shares)...................................... $47 $66 $87 $148
Rhode Island Municipal Bond Fund (Retail
Shares)...................................... $40 $44 $48 $ 62
</TABLE>
The Expense Summary and Example are intended to assist the investor in
understanding the costs and expenses that an investor in Retail Shares of the
Funds will bear directly or indirectly. They are based on expenses incurred by
each Fund during the last fiscal year, restated to reflect the fees which each
Fund expects to incur during the current fiscal year on its Retail Shares.
Without voluntary fee waivers and/or expense reimbursements by the Investment
Adviser, Advisory Fees would be .75%, .75%, .75%, .75% and .75% and
S-3
<PAGE>
Total Fund Operating Expenses would be 1.29%, 1.35%, 1.67%, 1.69% and 1.70%
for Retail Shares of the Tax-Exempt Bond, New York Municipal Bond, Connecticut
Municipal Bond, Massachusetts Municipal Bond and Rhode Island Municipal Bond
Funds, respectively. For more complete descriptions of these costs and
expenses, see "Management of the Funds" and "Description of Galaxy and Its
Shares" in this Prospectus and the financial statements and notes for the Tax-
Exempt Bond, New York Municipal Bond, Connecticut Municipal Bond and
Massachusetts Municipal Bond Funds incorporated by reference into the
Statement of Additional Information and, for the Rhode Island Municipal Bond
Fund, included in the Statement of Additional Information.
THE FOLLOWING SECTION ON PAGE 2 OF THE EQUITY FUNDS' PROSPECTUS HAS BEEN
REVISED TO READ AS FOLLOWS:
<TABLE>
<CAPTION>
SMALL
EQUITY EQUITY INTER- COMPANY ASSET
EQUITY GROWTH INCOME NATIONAL EQUITY ALLOCATION
VALUE FUND FUND FUND EQUITY FUND FUND FUND
(RETAIL (RETAIL (RETAIL (RETAIL (RETAIL (RETAIL
SHARES) SHARES) SHARES) SHARES) SHARES) SHARES)
---------- ------- ------- ----------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
SHAREHOLDER TRANSACTION
EXPENSES
Front End Sales Charge
Imposed on Purchases
(as a percentage of
offering price)........ 3.75%(/1/) 3.75%(/1/) 3.75%(/1/) 3.75%(/1/) 3.75%(/1/) 3.75%(/1/)
Sales Load on Reinvested
Dividends.............. None None None None None None
Deferred Sales Load..... None None None None None None
Redemption Fees(/2/).... None None None None None None
Exchange Fees........... None None None None None None
ANNUAL FUND OPERATING
EXPENSES
(AS A PERCENTAGE OF
AVERAGE NET ASSETS)
Advisory Fees (After Fee
Waivers)............... .75% .75% .75% .79% .75% .75%
12b-1 Fees.............. None None None None None None
Other Expenses (After
Expense
Reimbursements)........ .85% .85% .85% 1.16% 1.10% .85%
---- ---- ---- ---- ---- ----
Total Fund Operating
Expenses (After Fee
Waivers and Expense
Reimbursements)........ 1.60% 1.60% 1.60% 1.95% 1.85% 1.60%
==== ==== ==== ==== ==== ====
</TABLE>
- --------
(/1/) Reduced Sales charges may be available. See "How to Purchase and Redeem
Shares--Public Offering Price" and "How to Purchase and Redeem Shares--
Quantity Discounts".
(/2/) Direct Investors are charged a $5.00 fee if redemption proceeds are paid
by wire.
EXAMPLE: You would pay the following expenses on a $1,000 investment,
assuming (1) deduction at the time of purchase of the maximum applicable
front-end sales load, (2) a 5% annual return, and (3) redemption of your
investment at the end of the following periods:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
Equity Value Fund (Retail Shares).............. $54 $86 $121 $218
Equity Growth Fund (Retail Shares)............. $54 $86 $121 $218
Equity Income Fund (Retail Shares)............. $54 $86 $121 $218
International Equity Fund (Retail Shares)...... $57 $96 $138 $254
Small Company Equity Fund (Retail Shares)...... $56 $93 $133 $244
Asset Allocation Fund (Retail Shares).......... $54 $86 $121 $218
</TABLE>
The Expense Summary and Example are intended to assist the investor in
understanding the costs and expenses that an investor in Retail Shares of the
Funds will bear directly or indirectly. They are based on expenses incurred by
each Fund during the last fiscal year, restated to reflect the fees which each
Fund expects to incur during the current fiscal year on its Retail Shares.
Without voluntary fee waivers and/or expense reimbursements by the Investment
Adviser, Advisory Fees would be 1.15% for the International Equity Fund and
Total Fund Operating Expenses would be 1.69%, 1.65%, 2.43%, 2.06% and 1.75%
for Retail Shares of the Equity Value Fund, Equity Income Fund, International
Equity Fund, Small Company Equity Fund and Asset
S-4
<PAGE>
Allocation Fund, respectively. For more complete descriptions of these costs
and expenses, see "Management of the Funds" and "Description of Galaxy and Its
Shares" in this Prospectus and the financial statements and notes incorporated
by reference into the Statement of Additional Information.
THE FOLLOWING PARAGRAPHS ARE ADDED UNDER "HOW TO PURCHASE AND REDEEM SHARES"
IMMEDIATELY AFTER THE PARAGRAPH ENTITLED "PURCHASE OF SHARES" (I) ON PAGES 12-
13 OF THE TAXABLE BOND FUNDS' PROSPECTUS, (II) ON PAGES 18-19 OF THE TAX-
EXEMPT BOND FUNDS' PROSPECTUS, AND (III) ON PAGE 19 OF THE EQUITY FUNDS'
PROSPECTUS:
PUBLIC OFFERING PRICE
The public offering price for Retail Shares of each Fund is the sum of the
net asset value of the Retail Shares purchased plus any applicable front-end
sales charge. The sales charge is assessed as follows:
<TABLE>
<CAPTION>
TOTAL SALES CHARGE REALLOWANCE TO DEALERS
------------------------------ ----------------------
AS A % OF AS A % OF AS A % OF
OFFERING PRICE NET ASSET OFFERING PRICE
AMOUNT OF TRANSACTION PER SHARE VALUE PER SHARE PER SHARE
- --------------------- -------------- --------------- ----------------------
<S> <C> <C> <C>
Less than $50,000....... 3.75 3.90 3.75
$50,000 to $99,999...... 3.50 3.63 3.50
$100,000 to $249,999.... 3.00 3.09 3.00
$250,000 to $499,999.... 2.50 2.56 2.50
$500,000 to $999,999.... 2.00 2.04 2.00
$1,000,000 to
$2,999,999............. 1.00 1.01 1.00
$3,000,000 and over..... 0.50 0.50 0.50
</TABLE>
Further reductions in the sales charges shown above are also possible. See
"Quantity Discounts" below.
The Distributor will pay the appropriate reallowance to dealers to broker-
dealer organizations which have entered into agreements with the Distributor.
The reallowance to dealers may be changed from time to time.
At various times the Distributor may implement programs under which a
dealer's sales force may be eligible to win nominal awards for certain sales
efforts. Also, the Distributor in its discretion may from time to time,
pursuant to objective criteria established by the Distributor, pay fees to
qualifying dealers for certain services or activities which are primarily
intended to result in sales of Retail Shares of the Funds. If any such program
is made available to any dealer, it will be made available to all dealers on
the same terms and conditions. Payments made under such programs will be made
by the Distributor out of its own assets and not out of the assets of the
Funds. These programs will not change the price of Retail Shares or the amount
that the Funds will receive from such sales.
In certain situations or for certain individuals, the front-end sales charge
for Retail Shares of the Funds may be waived either because of the nature of
the investor or the reduced sales effort required to attract such investments.
In order to receive the sales charge waiver, an investor must explain the
status of his or her investment at the time of purchase. No sales charge is
assessed on the following types of transactions and/or investors:
. reinvestment of dividends and distributions;
. IRA, SEP and Keogh Plan accounts;
. purchases by persons who were beneficial owners of shares of the Funds
or any of the other portfolios offered by Galaxy or any other funds
advised by Fleet or its affiliates before December 1, 1995;
. purchases by directors, officers and employees of the Funds' Distributor
and of broker-dealers having agreements with the Funds' Distributor
pertaining to the sale of Retail Shares to the extent permitted by such
organizations;
S-5
<PAGE>
. investors who purchase pursuant to a "wrap fee" program offered by any
broker-dealer or other financial institution or financial planning
organization;
. purchases by members of Galaxy's Board of Trustees;
. purchases by officers, directors, employees and retirees of Fleet
Financial Group, Inc. and any of its affiliates; and
. any purchase of Retail Shares pursuant to the Reinstatement Privilege
described below.
QUANTITY DISCOUNTS
Direct Investors or Customers may be entitled to reduced sales charges
through Rights of Accumulation, a Letter of Intent or a combination of
investments, as described below, even if the Direct Investor or Customer does
not wish to make an investment of a size that would normally qualify for a
quantity discount.
In order to obtain quantity discount benefits, a Direct Investor or Customer
must notify Galaxy's administrator, First Data Investor Services Group, Inc.
(formerly known as The Shareholder Services Group, Inc. d/b/a 440 Financial)
("First Data") at the time of purchase that he or she would like to take
advantage of any of the discount plans described below. Upon such
notification, the investor will receive the lowest applicable sales charge.
Quantity discounts may be modified or terminated at any time and are subject
to confirmation of a Direct Investor's or Customer's holdings through a check
of appropriate records. For more information about quantity discounts, please
contact the Distributor or your Institution.
Rights of Accumulation. A reduced sales charge applies to any purchase of
Retail Shares of any portfolio of Galaxy that is sold with a sales charge
("Eligible Fund") where a Direct Investor's or Customer's then current
aggregate investment in Retail Shares is $50,000 or more. "Aggregate
investment" means the total of: (a) the dollar amount of the then current
purchase of shares of an Eligible Fund; and (b) the value (based on current
net asset value) of previously purchased and beneficially-owned shares of any
Eligible Fund on which a sales charge has been paid. If, for example, a Direct
Investor or Customer beneficially owns shares of one or more Eligible Funds
with an aggregate current value of $49,000 on which a sales charge has been
paid and subsequently purchases shares of an Eligible Fund having a current
value of $1,000, the sales charge applicable to the subsequent purchase would
be reduced to 3.50% of the offering price. Similarly, with respect to each
subsequent investment, all shares of Eligible Funds that are beneficially
owned by the investor at the time of investment may be combined to determine
the applicable sales charge.
Letter of Intent. By completing the Letter of Intent included as part of the
Account Application, a Direct Investor or Customer becomes eligible for the
reduced sales charge applicable to the total number of Eligible Fund Retail
Shares purchased in a 13-month period pursuant to the terms and under the
conditions set forth below and in the Letter of Intent. To compute the
applicable sales charge, the offering price of Retail Shares of an Eligible
Fund on which a sales charge has been paid that are beneficially owned by a
Direct Investor or Customer on the date of submission of the Letter of Intent,
may be used as a credit toward completion of the Letter of Intent. However,
the reduced sales charge will be applied only to new purchases.
First Data will hold in escrow Retail Shares equal to 5% of the amount
indicated in the Letter of Intent for payment of a higher sales charge if a
Direct Investor or Customer does not purchase the full amount indicated in the
Letter of Intent. The escrow will be released when a Direct Investor or
Customer fulfills the terms of the Letter of Intent by purchasing the
specified amount. If purchases qualify for a further sales charge reduction,
the sales charge will be adjusted to reflect a Direct Investor's or Customer's
total purchases. If total purchases are less than the amount specified, a
Direct Investor or Customer will be requested to remit an amount equal to the
difference between the sales charge actually paid and the sales charge
applicable to the total purchases. If such remittance is not received within
20 days, First Data as attorney-in-fact pursuant to the terms of the Letter of
Intent and at the Distributor's direction, will redeem an appropriate number
of Retail Shares held in escrow to
S-6
<PAGE>
realize the difference. Signing a Letter of Intent does not bind a Direct
Investor or Customer to purchase the full amount indicated at the sales charge
in effect at the time of signing, but a Direct Investor or Customer must
complete the intended purchase in accordance with the terms of the Letter of
Intent to obtain the reduced sales charge. To apply, a Direct Investor or
Customer must indicate his or her intention to do so under a Letter of Intent
at the time of purchase.
Qualification for Discounts. For purposes of applying the Rights of
Accumulation and Letter of Intent privileges described above, the scale of
sales charges applies to the combined purchases made by any individual and/or
spouse purchasing securities for his, her or their own account or for the
account of any minor children, or the aggregate investments of a trustee or
custodian of any qualified pension or profit sharing plan or IRA established
(or the aggregate investment of a trustee or other fiduciary) for the benefit
of the persons listed above.
Reinstatement Privilege. Direct Investors and Customers may reinvest all or
any portion of their redemption proceeds in Retail Shares of the Funds or in
Retail Shares of another portfolio of Galaxy within 90 days of the redemption
trade date without paying a sales charge. Retail Shares so reinvested will be
purchased at a price equal to the net asset value next determined after the
Transfer Agent receives a reinstatement request and payment in proper form.
Direct Investors and Customers wishing to exercise this Privilege must submit
a written reinstatement request to the Transfer Agent stating that the investor
is eligible to use the Privilege. The reinstatement request and payment must be
received within 90 days of the trade date of the redemption. Currently, there
are no restrictions on the number of times an investor may use this Privilege.
Generally, exercising the Reinstatement Privilege will not affect the
character of any gain or loss realized on redemptions for federal income tax
purposes. However, if a redemption results in a loss, the reinstatement may
result in the loss being disallowed under the Internal Revenue Code's "wash
sale" rules.
THE FOLLOWING SENTENCE IS ADDED TO THE FIRST PARAGRAPH UNDER "INVESTOR
PROGRAMS--EXCHANGE PRIVILEGE" (I) ON PAGE 16 OF THE TAXABLE BOND FUNDS'
PROSPECTUS, (II) ON PAGE 21 OF THE TAX-EXEMPT BOND FUNDS' PROSPECTUS, AND (III)
ON PAGE 22 OF THE EQUITY FUNDS' PROSPECTUS:
No additional sales charge will be incurred when exchanging Retail Shares of
a Fund for Retail Shares of another Galaxy portfolio that imposes a sales
charge.
THE FOLLOWING SENTENCE IS ADDED TO THE SECOND PARAGRAPH UNDER "INVESTOR
PROGRAMS--AUTOMATIC INVESTMENT PROGRAM AND SYSTEMATIC WITHDRAWAL PLAN" (I) ON
PAGE 17 OF THE TAXABLE BOND FUNDS' PROSPECTUS, (II) ON PAGE 22 OF THE TAX-
EXEMPT BOND FUNDS' PROSPECTUS, AND (III) ON PAGE 23 OF THE EQUITY FUNDS'
PROSPECTUS:
Purchases of additional Retail Shares concurrently with withdrawals are
ordinarily not advantageous because of the sales charge.
THE FOLLOWING PARAGRAPH IS ADDED AS THE FIFTH PARAGRAPH UNDER "PERFORMANCE AND
YIELD INFORMATION" (I) ON PAGE 22 OF THE TAXABLE BOND FUNDS' PROSPECTUS, (II)
ON PAGE 28 OF THE TAX-EXEMPT BOND FUNDS' PROSPECTUS, AND (III) ON PAGE 29 OF
THE EQUITY FUNDS' PROSPECTUS:
The Funds may also advertise total return data without reflecting the sales
charge imposed on the purchase of Retail Shares in accordance with the rules of
the Securities and Exchange Commission. Quotations that do not reflect the
sales charge will be higher than quotations that do reflect the sales charge.
* * * * *
S-7
<PAGE>
THE FOLLOWING IS A CONSOLIDATION OF INFORMATION PROVIDED IN PRIOR SUPPLEMENTS
TO THE FUNDS' PROSPECTUSES:
FROM SUPPLEMENT DATED MARCH 31, 1995 TO PROSPECTUSES FOR ALL FUNDS.
Administrator, Transfer Agent and Distributor
On March 31, 1995, The Shareholder Services Group, Inc. ("TSSG") d/b/a 440
Financial, a Massachusetts corporation and a wholly-owned subsidiary of First
Data Corporation, acquired all of the assets of 440 Financial Group of
Worcester, Inc. ("440"), Galaxy's administrator and transfer agent. The assets
of 440 acquired by TSSG included all of the issued and outstanding stock of
440 Financial Distributors, Inc. ("440 Distributors"), Galaxy's distributor,
and all rights to the name "440 Financial."
At meetings held on December 1, 1994 and February 28, 1995, the Board of
Trustees of Galaxy approved new administration and transfer agency agreements
with TSSG and a new distribution agreement with 440 Distributors, which
contain terms substantially the same as those in Galaxy's existing agreements
with 440 and 440 Distributors.
It is expected that the principal officers and substantially all of the
employees of 440 and 440 Distributors that service Galaxy will continue to be
employed by TSSG. The addresses and telephone numbers for 440 Financial and
440 Distributors in Galaxy's prospectuses will remain as the addresses and
telephone numbers for TSSG and 440 Distributors.
On November 1, 1995, TSSG changed its name to First Data Investor Services
Group, Inc.
FROM SUPPLEMENT DATED JUNE 12, 1995 TO PROSPECTUS FOR TAX-EXEMPT BOND FUNDS:
THE FOLLOWING FINANCIAL HIGHLIGHTS SHOULD BE INCLUDED IN THE TAX-EXEMPT BOND
FUNDS' PROSPECTUS AFTER PAGE 7.
The "Financial Highlights" presented below, which set forth certain historic
investment results for Retail Shares of the Rhode Island Municipal Bond Fund,
should be read in conjunction with the financial statements, which are
contained in Galaxy's Semi-Annual Report to Shareholders and the Statement of
Additional Information. The following data for the period ended April 30, 1995
for Retail Shares of the Rhode Island Municipal Bond Fund are unaudited.
Further information about the performance of the Rhode Island Municipal Bond
Fund is available in Galaxy's Semi-Annual Report to Shareholders. The
Statement of Additional Information and the Semi-Annual Report to Shareholders
may be obtained from Galaxy free of charge by calling the telephone number on
page 1 of the Prospectus.
S-8
<PAGE>
RHODE ISLAND MUNICIPAL BOND FUND
FINANCIAL HIGHLIGHTS
FOR A RETAIL SHARE OUTSTANDING THROUGHOUT THE PERIOD.
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 1995(/1/)
(UNAUDITED)
-------------------
<S> <C>
Net Asset Value, Beginning of period........................ $ 10.00
-------
Income from Investment Operations:
Net investment income(/A/)................................ 0.16
Net realized and unrealized gain (loss) on investments.... 0.32
-------
Total from Investment Operations........................ 0.48
-------
Less Dividends:
Dividends from net investment income...................... (0.16)
Dividends from net realized capital gains................. --
-------
Total Dividends......................................... (0.16)
-------
Net increase (decrease) in net asset value.................. 0.32
-------
Net Asset Value, End of period.............................. $ 10.32
=======
Total Return................................................ 4.82%**
Ratios/Supplemental Data:
Net Assets, End of period (000's)........................... $ 6,204
Ratios to average net assets:
Net investment income..................................... 5.02%*
Operating expenses(/A/)................................... 0.36%*
Portfolio Turnover Rate..................................... 12%
</TABLE>
- --------
* Annualized
** Not Annualized
(/1/) The Fund commenced operations on December 20, 1994.
(/A/) Net investment income per share and the operating expense ratio for Retail
Shares before reimbursement and waiver of fees by the Investment Adviser
for the period ended April 30, 1995 were $(0.02) and 5.89%, respectively.
FROM SUPPLEMENT DATED JULY 19, 1995 TO PROSPECTUS FOR EQUITY FUNDS:
THE FOLLOWING REPLACES THE EIGHTH PARAGRAPH UNDER THE HEADING "INVESTMENT
ADVISER AND SUB-ADVISER" ON PAGE 25 OF THE EQUITY FUNDS' PROSPECTUS:
Donald Jones replaced Frederick E. Thompson as the portfolio manager of the
Asset Allocation Fund (the "Fund") on May 1, 1995. As portfolio manager, Mr.
Jones is primarily responsible for the day-to-day management of the Fund's
investment portfolio. Mr. Jones, who currently serves as a Vice President, has
been with Fleet Investment Advisors Inc. and its predecessors as a portfolio
manager since 1988 and has managed Galaxy's New York Municipal Bond Fund since
September, 1994.
FROM SUPPLEMENT DATED SEPTEMBER 7, 1994 TO PROSPECTUS FOR TAXABLE BOND FUNDS:
At a meeting held on September 7, 1995, Galaxy's Board of Trustees approved
a change in a non-fundamental investment policy of the Intermediate Bond Fund
(the "Fund"). The policy, which formerly provided that, under normal market
and economic conditions, at least 65% of the Fund's assets would be invested
in bonds and debentures rated at the time of purchase within the three highest
rating categories of Standard & Poor's Ratings Group or Moody's Investors
Service, Inc. or, if unrated, deemed to be of comparable quality by
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the Fund's investment adviser, has been changed to provide that, under normal
market and economic conditions, at least 65% of the Fund's assets will be
invested in U.S. Government securities. As a result of this change in
investment policy, the Board of Trustees also approved a change in the name of
the Fund to "Intermediate Government Income Fund". Both the change in the
Fund's investment policy and name are effective immediately.
FROM SUPPLEMENT DATED NOVEMBER 3, 1995 TO THE PROSPECTUSES FOR ALL FUNDS:
THE FOLLOWING PARAGRAPHS ARE ADDED IMMEDIATELY FOLLOWING "INVESTOR PROGRAMS--
AUTOMATIC INVESTMENT PROGRAM AND SYSTEMATIC WITHDRAWAL PLAN" (I) ON PAGE 17 OF
THE TAXABLE BOND FUNDS' PROSPECTUS, (II) ON PAGE 22 OF THE TAX-EXEMPT BOND
FUNDS' PROSPECTUS, AND (III) ON PAGE 23 OF THE EQUITY FUNDS' PROSPECTUS:
GALAXY COLLEGE INVESTMENT PROGRAM
The Galaxy College Investment Program (the "College Program") permits an
Investor to open an account with Galaxy and purchase Retail Shares of a Fund
with a minimum amount of $100 for initial or subsequent investments, except
that if the Investor purchases Retail Shares through the Automatic Investment
Program, the minimum per transaction is $50. The College Program is designed
to assist Investors who want to finance a college savings plan. See "Investor
Programs--Automatic Investment Program and Systematic Withdrawal Plan" for
information on the Automatic Investment Program. Retail Shares purchased in
connection with the College Program will be subject to a sales load in
accordance with Galaxy's Prospectus, unless the purchase qualifies for an
exception to the load. See "How to Purchase and Redeem Shares--Public Offering
Price". Galaxy reserves the right to redeem accounts participating in the
College Program involuntarily, upon 60 days' written notice, if the account's
net asset value falls below the applicable minimum initial investment as a
result of redemptions. See "How to Purchase and Redeem Shares--Other
Redemption Information" above for further information.
Investors in the College Program will receive consolidated monthly
statements of their accounts. Detailed information concerning College Program
accounts and applications may be obtained from Galaxy's distributor (call
(800) 628-0413).
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