<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
SHORT-TERM BOND FUND,
INTERMEDIATE GOVERNMENT INCOME FUND AND
HIGH QUALITY BOND FUND
(THE "FUNDS")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The fourth paragraph on page 1 of the Prospectus is amended and restated
in its entirety to read as follows:
The HIGH QUALITY BOND FUND'S investment objective is to seek a high
level of current income consistent with prudent risk of capital. The Fund
will invest substantially all of its assets in debt obligations of domestic
and foreign issuers that are rated at the time of purchase within the four
highest rating categories assigned by S&P or Moody's (or which, if unrated,
are of comparable quality) and in obligations issued or guaranteed by the
U.S. Government, its agencies or instrumentalities and "money market"
instruments, provided, however, that under normal market and economic
conditions, the Fund will invest at least 65% of its total assets in high
quality debt obligations rated at the time of purchase within the two
highest rating categories assigned by S&P or Moody's (or which, if unrated,
are of comparable quality).
2. The first paragraph on page 2 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in each Fund. Trust Shares
are offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in each
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares in a Fund represent equal pro rata
interests in the Fund, except they bear different expenses which reflect the
differences in the range of services provided to them. Retail A Shares and
Retail B Shares and A Prime Shares and B Prime Shares are offered under
separate prospectuses. See "Financial Highlights," "Management of the Funds"
and "Description of Galaxy and Its Shares" herein.
3. The first paragraph under the heading "Financial Highlights" on page 4
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in each Fund. Galaxy is also
authorized to issue four additional series of shares in each Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in a Fund, except that (i) effective October 1, 1994
Retail A Shares of a Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .15% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of a Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .80% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of a Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average
<PAGE>
daily net asset value of the Fund's outstanding A Prime Shares, (iv) B Prime
Shares of a Fund bear the expenses incurred under Galaxy's Distribution and
Services Plan for B Prime Shares at an annual rate of up to 1.00% of the
average daily net asset value of the Fund's outstanding B Prime Shares, and
(v) Trust Shares, Retail A Shares, Retail B Shares, A Prime Shares and B
Prime Shares bear differing transfer agency expenses. Retail A Shares and
Retail B Shares and A Prime Shares and B Prime Shares are offered under
separate prospectuses.
4. The second paragraph under the heading "Investment Objectives and
Policies--High Quality Bond Fund" on page 10 of the Prospectus is amended and
restated in its entirety to read as follows:
The Fund will invest substantially all of its assets in debt obligations
that are rated, at the time of purchase, within the four highest rating
categories assigned by S&P ("AAA," "AA," "A" and "BBB") or Moody's ("Aaa",
"Aa", "A" and "Baa") (or, if unrated, are determined by Fleet to be of
comparable quality) and in obligations issued or guaranteed by the U.S.
Government, its agencies or instrumentalities and "money market" instruments
such as those listed below under "Other Investment Policies and Risk
Considerations." See "Short-Term Bond Fund" above for a description of the
risks of investing in debt obligations rated in the lowest of the four
highest rating categories. Under normal market and economic conditions, the
Fund will invest at least 65% of its total assets in high quality debt
obligations that are rated at the time of purchase within the two highest
rating categories assigned by S&P or Moody's (or which, if unrated, are
determined by Fleet to be of comparable quality). Unrated securities will be
determined to be of comparable quality to high quality debt obligations if,
among other things, other outstanding obligations of the issuers of such
securities are rated AA/Aa or better. When, in Fleet's opinion, a defensive
investment posture is warranted, the Fund may invest temporarily and without
limitation in high quality, short-term "money market" instruments. See
Appendix A to the Statement of Additional Information for a description of
S&P's and Moody's rating categories.
5. The second sentence of the third paragraph under the heading "Taxes" on
pages 23-24 of the Prospectus is deleted.
6. The third sentence of the second paragraph under the heading "Management
of the Funds-- Administrator" on page 26 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Funds, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Funds and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
7. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on pages 26-27 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Funds as follows: Class D shares (Trust Shares), Class D-Special Series
1 shares (Retail A Shares), Class D-Special Series 2 shares (Retail B
Shares), Class D-Special Series 3 shares (A Prime Shares) and Class
D-Special Series 4 shares (B Prime Shares), each series representing
interests in the Intermediate Government Income Fund; Class J-Series 1
shares (Trust Shares) Class J-Series 2 shares (Retail A Shares), Class
J-Series 3 shares (Retail B Shares), Class J-Series 4 shares (A Prime
Shares) and Class J-Series 5 shares (B Prime Shares), each series
representing interests in the High Quality Bond Fund; and
2
<PAGE>
Class L-Series 1 shares (Trust Shares), Class L-Series 2 shares (Retail A
Shares), Class L-Series 3 shares (Retail B Shares), Class L-Series 4 shares
(A Prime Shares) and Class L-Series 5 shares (B Prime Shares), each series
representing interests in the Short-Term Bond Fund. Each Fund is classified
as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Funds' Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in a Fund bear their pro rata portion of all
operating expenses paid by that Fund except as follows: Holders of a series
of shares of a Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of a Fund may bear differing transfer agency expenses. Each
series of shares of the Funds may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
8. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 29 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Funds.
9. The following paragraph is added under the heading "Miscellaneous" on
page 30 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
3
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
SHORT-TERM BOND FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third paragraph on page 1 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page 4
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is also
authorized to issue four additional series of shares in the Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in the Fund, except that (i) effective October 1, 1994
Retail A Shares of the Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .15% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of the Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .80% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution and Services Plan for
B Prime Shares at an annual rate of up to 1.00% of the average daily net
asset value of the Fund's outstanding B Prime Shares, and (v) Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear
differing transfer agency expenses. Retail A Shares and Retail B Shares and
A Prime Shares and B Prime Shares are offered under separate prospectuses.
3. The second sentence of the third paragraph under the heading "Taxes" on
pages 19-20 of the Prospectus is deleted.
4. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on page 22 of the Prospectus is amended and
restated to read as follows:
1
<PAGE>
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
5. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on pages 22-23 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Fund as follows: Class L-Series 1 shares (Trust Shares), Class L-Series
2 shares (Retail A Shares), Class L-Series 3 shares (Retail B Shares), Class
L-Series 4 shares (A Prime Shares) and Class L-Series 5 shares (B Prime
Shares), each series representing interests in the Fund. The Fund is
classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
6. The second sentence of the second paragraph under the heading
"Performance Reporting" on pages 24-25 of the Prospectus is amended and restated
to read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
7. The following paragraph is added under the heading "Miscellaneous" on
page 25 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
2
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
INTERMEDIATE GOVERNMENT INCOME FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third paragraph on page 1 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page 3
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is also
authorized to issue four additional series of shares in the Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in the Fund, except that (i) effective October 1, 1994
Retail A Shares of the Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .15% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of the Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .80% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution and Services Plan for
B Prime Shares at an annual rate of up to 1.00% of the average daily net
asset value of the Fund's outstanding B Prime Shares, and (v) Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear
differing transfer agency expenses. Retail A Shares and Retail B Shares and
A Prime Shares and B Prime Shares are offered under separate prospectuses.
3. The second sentence of the third paragraph under the heading "Taxes" on
page 18 of the Prospectus is deleted.
4. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on page 20 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively,
<PAGE>
the "Portfolios"), .085% of the next $2.5 billion of combined average daily
net assets, .075% of the next $7 billion of combined average daily net
assets, .065% of the next $3 billion of combined average daily net assets,
.06% of the next $3 billion of combined average daily net assets and .0575%
of combined average daily net assets in excess of $18 billion.
5. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on pages 20-21 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Fund as follows: Class D shares (Trust Shares), Class D-Special Series 1
shares (Retail A Shares), Class D-Special Series 2 shares (Retail B Shares),
Class D-Special Series 3 shares (A Prime Shares) and Class D-Special Series
4 shares (B Prime Shares), each series representing interests in the Fund.
The Fund is classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
6. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 23 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
7. The following paragraph is added under the heading "Miscellaneous" on
page 24 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
2
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
HIGH QUALITY BOND FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The second and third paragraphs on page 1 of the Prospectus are
amended and restated in their entirety to read as follows:
The Fund's investment objective is to seek a high level of current
income consistent with prudent risk of capital. The Fund will invest
substantially all of its assets in debt obligations of domestic and
foreign issuers that are rated at the time of purchase within the four
highest rating categories assigned by Standard & Poor's Ratings Group
("S&P") or Moody's Investors Service Inc. ("Moody's") (or which, if
unrated, are of comparable quality) and in obligations issued or
guaranteed by the U.S. Government, its agencies or instrumentalities and
"money market" instruments, provided, however, that under normal market
and economic conditions, the Fund will invest at least 65% of its total
assets in high quality debt obligations rated at the time of purchase
within the two highest rating categories assigned by S&P or Moody's (or
which, if unrated, are of comparable quality).
This Prospectus describes the Trust Shares in the Fund. Trust Shares
are offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial
Group, Inc., and to participants in employer-sponsored defined
contribution plans. Galaxy is also authorized to issue four additional
series of shares in the Fund, Retail A Shares, Retail B Shares, A Prime
Shares and B Prime Shares. Retail A Shares and Retail B Shares are
offered primarily to individuals, corporations or other entities
purchasing either for their own accounts or for the accounts of others
and to FIS Securities, Inc., Fleet Securities, Inc., Fleet Enterprises,
Inc., Fleet Financial Group, Inc., its affiliates, their correspondent
banks and other qualified banks, savings and loan associations and
broker/dealers on behalf of their customers. A Prime Shares and B Prime
Shares are offered through selected broker-dealers to individual and
institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in
the Fund, except they bear different expenses which reflect the
differences in the range of services provided to them. Retail A Shares
and Retail B Shares and A Prime Shares and B Prime Shares are offered
under separate prospectuses. See "Financial Highlights," "Management of
the Fund" and "Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page
4 of the Prospectus is amended and restated in its entirety to read as
follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is
also authorized to issue four additional series of shares in the Fund,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares. As
described below under "Description of Galaxy and Its Shares," Trust
Shares, Retail A Shares, Retail B Shares, A Prime Shares and B Prime
Shares represent equal pro rata interests in the Fund, except that (i)
effective October 1, 1994 Retail A Shares of the Fund bear the expenses
incurred under Galaxy's Shareholder Services Plan for Retail A Shares and
Trust Shares at an annual rate of up to .15% of the average daily net
asset value of the Fund's outstanding Retail A Shares, (ii) Retail B
Shares of the Fund bear the expenses incurred under Galaxy's Distribution
and Services Plan for Retail B Shares at an annual rate of up to .80% of
the average daily net asset value of the Fund's outstanding Retail B
Shares, (iii) A Prime Shares of the Fund bear the expenses incurred under
Galaxy's Distribution Plan for A Prime Shares at an annual rate of up to
.25% of the average daily net asset value of the Fund's outstanding A
Prime Shares, (iv) B Prime Shares of the Fund bear the expenses incurred
under Galaxy's Distribution
<PAGE>
and Services Plan for B Prime Shares at an annual rate of up to 1.00% of
the average daily net asset value of the Fund's outstanding B Prime
Shares, and (v) Trust Shares, Retail A Shares, Retail B Shares, A Prime
Shares and B Prime Shares bear differing transfer agency expenses. Retail
A Shares and Retail B Shares and A Prime Shares and B Prime Shares are
offered under separate prospectuses.
3. The second paragraph under the heading "Investment Objective and
Policies" on page 6 of the Prospectus is amended and restated in its
entirety to read as follows:
The Fund will invest substantially all of its assets in debt
obligations that are rated, at the time of purchase, within the four
highest rating categories assigned by S&P ("AAA," "AA," "A" and "BBB") or
Moody's ("Aaa", "Aa", "A" and "Baa") (or, if unrated, are determined by
Fleet to be of comparable quality) and in obligations issued or
guaranteed by the U.S. Government, its agencies or instrumentalities and
"money market" instruments such as those listed below under "Other
Investment Policies and Risk Considerations." Debt obligations rated in
the lowest of the four highest rating categories assigned by S&P or
Moody's are considered to have speculative characteristics, even though
they are of investment grade quality, and changes in economic conditions
or other circumstances are more likely to lead to a weakened capacity to
make principal and interest payments than is the case with higher grade
debt obligations. Under normal market and economic conditions, the Fund
will invest at least 65% of its total assets in high quality debt
obligations that are rated at the time of purchase within the two highest
rating categories assigned by S&P or Moody's (or which, if unrated, are
determined by Fleet to be of comparable quality). Unrated securities will
be determined to be of comparable quality to high quality debt
obligations if, among other things, other outstanding obligations of the
issuers of such securities are rated AA/Aa or better. When, in Fleet's
opinion, a defensive investment posture is warranted, the Fund may invest
temporarily and without limitation in high quality, short-term "money
market" instruments. See Appendix A to the Statement of Additional
Information for a description of S&P's and Moody's rating categories.
4. The second sentence of the third paragraph under the heading "Taxes"
on page 19 of the Prospectus is deleted.
5. The third sentence of the second paragraph under the heading
"Management of the Fund-- Administrator" on page 21 of the Prospectus is
amended and restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly,
at the annual rate of .09% of the first $2.5 billion of combined average
daily net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of
combined average daily net assets, .075% of the next $7 billion of
combined average daily net assets, .065% of the next $3 billion of
combined average daily net assets, .06% of the next $3 billion of
combined average daily net assets and .0575% of combined average daily
net assets in excess of $18 billion.
6. The first three paragraphs under the heading "Description of Galaxy
and Its Shares" on pages 21-22 of the Prospectus are amended and restated in
their entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series
of the Fund as follows: Class J-Series 1 shares (Trust Shares) Class
J-Series 2 shares (Retail A Shares), Class J-Series 3 shares (Retail B
Shares), Class J-Series 4 shares (A Prime Shares) and Class J-Series 5
shares (B Prime Shares), each series representing interests in the Fund.
The Fund is classified as a diversified company under the 1940 Act.
2
<PAGE>
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares and these
other portfolios, which are offered through separate prospectuses,
contact FD Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a
series of shares of the Fund bear fees that are paid under any
distribution and/or shareholder servicing plans applicable to such
series. In addition, each series of shares of the Fund may bear differing
transfer agency expenses. Each series of shares of the Fund may also have
different sales charges, conversion features, exchange and other
privileges. The differences in expenses and sales charges of each series
of shares will affect their performance. Standardized yield and total
return quotations are computed separately for each series of shares.
7. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 24 of the Prospectus is amended and restated
to read as follows:
Performance data will be computed separately for Trust Shares, Retail
A Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
8. The following paragraph is added under the heading "Miscellaneous"
on page 25 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if
the computer systems used by Fleet and Galaxy's other service providers
do not properly process and calculate date-related information and data
from and after January 1, 2000. This is commonly known as the "Year 2000
Problem." Fleet is taking steps to address the Year 2000 Problem with
respect to the computer systems that it uses and to obtain assurance that
comparable steps are being taken by Galaxy's other major service
providers. At this time, however, there can be no assurance that these
steps will be sufficient to avoid any adverse impact on Galaxy as a
result of the Year 2000 Problem.
3
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
CORPORATE BOND FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The name of the bank to which Direct Investors should arrange to
transmit federal funds in order to purchase Trust Shares by wire as shown
under "How to Purchase and Redeem Shares-- Purchase Procedures--Direct
Investors--Purchases by Wire" on page 19 of the Prospectus has been changed
to Fleet National Bank. All other information with respect to the wiring of
federal funds to purchase Trust Shares remains the same.
2. The first paragraph under the heading "Information Services--Galaxy
Shareholder Services" on page 22 of the Prospectus is amended and restated
in its entirety to read as follows:
For account information, Direct Investors can call Galaxy Shareholder
Services Monday through Friday, between the hours of 8:00 a.m. to 6:00
p.m. (Eastern Time) at 1-800-628-0414.
3. The second sentence of the third paragraph under the heading "Taxes"
on page 23 of the Prospectus is deleted.
4. The third sentence of the second paragraph under the heading
"Management of the Fund-- Administrator" on page 25 of the Prospectus is
amended and restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly,
at the annual rate of .09% of the first $2.5 billion of combined average
daily net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of
combined average daily net assets, .075% of the next $7 billion of
combined average daily net assets, .065% of the next $3 billion of
combined average daily net assets, .06% of the next $3 billion of
combined average daily net assets and .0575% of combined average daily
net assets in excess of $18 billion.
5. The following paragraph is added under the heading "Miscellaneous"
on page 29 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if
the computer systems used by Fleet and Galaxy's other service providers
do not properly process and calculate date-related information and data
from and after January 1, 2000. This is commonly known as the "Year 2000
Problem." Fleet is taking steps to address the Year 2000 Problem with
respect to the computer systems that it uses and to obtain assurance that
comparable steps are being taken by Galaxy's other major service
providers. At this time, however, there can be no assurance that these
steps will be sufficient to avoid any adverse impact on Galaxy as a
result of the Year 2000 Problem.
<PAGE>
THE GALAXY FUND
("GALAXY")
RETAIL SHARES OF THE
TAX-EXEMPT BOND FUND,
NEW JERSEY MUNICIPAL BOND FUND,
NEW YORK MUNICIPAL BOND FUND,
CONNECTICUT MUNICIPAL BOND FUND,
MASSACHUSETTS MUNICIPAL BOND FUND AND
RHODE ISLAND MUNICIPAL BOND FUND
(THE "FUNDS")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The sixth and seventh sentences of the ninth paragraph on the cover page
of the Prospectus are amended and restated to read as follows:
Galaxy is also authorized to issue an additional series of shares, Trust
Shares, in each Fund and three additional series of shares, Trust Shares, A
Prime Shares and B Prime Shares, in the Tax-Exempt Bond Fund. Trust Shares
are offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc. A Prime Shares and B Prime Shares are offered through selected
broker-dealers to individual and institutional customers. Retail A Shares,
Retail B Shares, Trust Shares, A Prime Shares and/or B Prime Shares in a
Fund represent equal pro rata interests in the Fund, except they bear
different expenses which reflect the differences in the range of services
provided to them. Trust Shares and A Prime Shares and B Prime Shares are
offered under separate prospectuses.
2. The first paragraph under the heading "Financial Highlights" on page 5
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Retail A Shares in each Fund and the
Retail B Shares in the Tax-Exempt Bond Fund. Galaxy is also authorized to
issue an additional series of shares, Trust Shares, in each Fund, and three
additional series of shares, Trust Shares, A Prime Shares and B Prime
Shares, in the Tax-Exempt Bond Fund. As described below under "Description
of Galaxy and Its Shares," Retail A Shares, Retail B Shares, Trust Shares, A
Prime Shares and B Prime Shares represent equal pro rata interests in a
Fund, except that (i) effective October 1, 1994 Retail A Shares of a Fund
bear the expenses incurred under Galaxy's Shareholder Services Plan for
Retail A Shares and Trust Shares at an annual rate of up to .15% of the
average daily net asset value of the Fund's outstanding Retail A Shares,
(ii) Retail B Shares of the Tax-Exempt Bond Fund bear the expenses incurred
under Galaxy's Distribution and Services Plan for Retail B Shares at an
annual rate of up to .80% of the average daily net asset value of the Fund's
outstanding Retail B Shares, (iii) A Prime Shares of the Tax-Exempt Bond
Fund bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the
Tax-Exempt Bond Fund bear the expenses incurred under Galaxy's Distribution
and Services Plan for B Prime Shares at an annual rate of up to 1.00% of the
average daily net asset value of the Fund's outstanding B Prime Shares, and
(v) Retail A Shares, Retail B Shares, Trust Shares, A Prime Shares and B
Prime Shares bear differing transfer agency expenses. Trust Shares and A
Prime Shares and B Prime Shares are offered under separate prospectuses.
1
<PAGE>
3. The first paragraph under the heading "Information Services--Galaxy
Shareholder Services" on page 33 of the Prospectus is amended and restated in
its entirety to read as follows:
For account information and recent exchange transactions, Direct
Investors can call Galaxy Shareholder Services Monday through Friday,
between the hours of 8:00 a.m. to 6:00 p.m. (Eastern Time) at
1-800-628-0414.
4. The third sentence of the second paragraph under the heading "Management
of the Funds-- Administrator" on pages 36-37 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Funds, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Funds and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
5. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on page 37 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Funds as follows: Class M-Series 1 shares (Trust Shares), Class M-Series
2 shares (Retail A Shares), Class M-Series 3 shares (Retail B Shares), Class
M-Series 4 shares (A Prime Shares) and Class M-Series 5 shares (B Prime
Shares), each series representing interests in the Tax-Exempt Bond Fund;
Class O-Series 1 shares (Trust Shares) and Class O-Series 2 shares (Retail A
Shares), each series representing interests in the New York Municipal Bond
Fund; Class P-Series 1 shares (Trust Shares) and Class P-Series 2 shares
(Retail A Shares), each series representing interests in the Connecticut
Municipal Bond Fund; Class Q-Series 1 shares (Trust Shares) and Class
Q-Series 2 shares (Retail A Shares), each series representing interests in
the Massachusetts Municipal Bond Fund; Class R-Series 1 shares (Trust
Shares) and Class R-Series 2 shares (Retail A Shares), each series
representing interests in the Rhode Island Municipal Bond Fund; and Class
Y-Series 1 shares (Trust Shares) and Class Y-Series 2 shares (Retail A
Shares), each series representing interests in the New Jersey Municipal Bond
Fund. The Tax-Exempt Bond Fund is classified as a diversified company and
the New Jersey Municipal Bond, New York Municipal Bond, Connecticut
Municipal Bond, Massachusetts Municipal Bond and Rhode Island Municipal Bond
Funds are classified as non-diversified companies under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Funds' Trust Shares, A
Prime Shares and/or B Prime Shares and these other portfolios, which are
offered through separate prospectuses, contact FD Distributors at
1-800-628-0414.
Shares of each series in a Fund bear their pro rata portion of all
operating expenses paid by that Fund except as follows: Holders of a series
of shares of a Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of a Fund may bear differing transfer agency expenses. Each
series of shares of the Funds may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
2
<PAGE>
6. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 39 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and/or B Prime Shares of the Funds.
7. The following paragraph is added under the heading "Miscellaneous" on
page 39 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
3
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
TAX-EXEMPT BOND FUND,
NEW JERSEY MUNICIPAL BOND FUND,
NEW YORK MUNICIPAL BOND FUND,
CONNECTICUT MUNICIPAL BOND FUND,
MASSACHUSETTS MUNICIPAL BOND FUND AND
RHODE ISLAND MUNICIPAL BOND FUND
(THE "FUNDS")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The first paragraph on page 2 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in each Fund. Trust Shares
are offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc. Galaxy is also authorized to issue an additional series of shares,
Retail A Shares, in the New Jersey Municipal Bond, New York Municipal Bond,
Connecticut Municipal Bond, Massachusetts Municipal Bond and Rhode Island
Municipal Bond Funds and four additional series of shares, Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares, in the Tax-Exempt Bond
Fund. Retail A Shares and Retail B Shares are offered primarily to
individuals, corporations or other entities purchasing either for their own
accounts or for the accounts of others and to FIS Securities, Inc., Fleet
Securities, Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its
affiliates, their correspondent banks and other qualified banks, savings and
loan associations and broker/dealers on behalf of their customers. A Prime
Shares and B Prime Shares are offered through selected broker-dealers to
individual and institutional customers. Trust Shares, Retail A Shares,
Retail B Shares, A Prime Shares and/or B Prime Shares in a Fund represent
equal pro rata interests in the Fund, except they bear different expenses
which reflect the differences in the range of services provided to them.
Retail A Shares and Retail B Shares and A Prime Shares and B Prime Shares
are offered under separate prospectuses. See "Financial Highlights,"
"Management of the Funds" and "Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page 5
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in each Fund. Galaxy is also
authorized to issue an additional series of shares, Retail A Shares, in the
New Jersey Municipal Bond Fund, New York Municipal Bond Fund, Connecticut
Municipal Bond Fund, Massachusetts Municipal Bond Fund and Rhode Island
Municipal Bond Fund, and four additional series of shares, Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares, in the Tax-Exempt Bond
Fund. As described below under "Description of Galaxy and Its Shares," Trust
Shares, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares
represent equal pro rata interests in a Fund, except that (i) effective
October 1, 1994 Retail A Shares of a Fund bear the expenses incurred under
Galaxy's Shareholder Services Plan for Retail A Shares and Trust Shares at
an annual rate of up to .15% of the average daily net asset value of the
Fund's outstanding Retail A Shares, (ii) Retail B Shares of the Tax-Exempt
Bond Fund bear the expenses incurred under Galaxy's Distribution and
Services Plan for Retail B Shares at an annual rate of up to .80% of the
average daily net asset value of the Fund's outstanding Retail B Shares,
(iii) A Prime Shares of the Tax-Exempt Bond Fund bear the expenses incurred
under Galaxy's Distribution Plan for A Prime Shares at an annual rate of up
to .25% of the average daily net asset value of the Fund's outstanding A
Prime Shares, (iv) B Prime Shares of the Tax-Exempt Bond Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for B Prime
Shares at
<PAGE>
an annual rate of up to 1.00% of the average daily net asset value of the
Fund's outstanding B Prime Shares, and (v) Trust Shares, Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares bear differing transfer
agency expenses. Retail A Shares and Retail B Shares and A Prime Shares and
B Prime Shares are offered under separate prospectuses.
3. The third sentence of the second paragraph under the heading "Management
of the Funds-- Administrator" on pages 35-36 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Funds, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Funds and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
4. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on page 36 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Funds as follows: Class M-Series 1 shares (Trust Shares), Class M-Series
2 shares (Retail A Shares), Class M-Series 3 shares (Retail B Shares), Class
M-Series 4 shares (A Prime Shares) and Class M-Series 5 shares (B Prime
Shares), each series representing interests in the Tax-Exempt Bond Fund;
Class O-Series 1 shares (Trust Shares) and Class O-Series 2 shares (Retail A
Shares), each series representing interests in the New York Municipal Bond
Fund; Class P-Series 1 shares (Trust Shares) and Class P-Series 2 shares
(Retail A Shares), each series representing interests in the Connecticut
Municipal Bond Fund; Class Q-Series 1 shares (Trust Shares) and Class
Q-Series 2 shares (Retail A Shares), each series representing interests in
the Massachusetts Municipal Bond Fund; Class R-Series 1 shares (Trust
Shares) and Class R-Series 2 shares (Retail A Shares), each series
representing interests in the Rhode Island Municipal Bond Fund; and Class
Y-Series 1 shares (Trust Shares) and Class Y-Series 2 shares (Retail A
Shares), each series representing interests in the New Jersey Municipal Bond
Fund. The Tax-Exempt Bond Fund is classified as a diversified company and
the New Jersey Municipal Bond, New York Municipal Bond, Connecticut
Municipal Bond, Massachusetts Municipal Bond and Rhode Island Municipal Bond
Funds are classified as non-diversified companies under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Funds' Retail A Shares,
Retail B Shares, A Prime Shares and/or B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in a Fund bear their pro rata portion of all
operating expenses paid by that Fund except as follows: Holders of a series
of shares of a Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of a Fund may bear differing transfer agency expenses. Each
series of shares of the Funds may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
5. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 38 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and/or B Prime Shares of the Funds.
<PAGE>
6. The following paragraph is added under the heading "Miscellaneous" on
page 39 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
<PAGE>
THE GALAXY FUND
("GALAXY")
RETAIL SHARES OF THE
MONEY MARKET FUND,
GOVERNMENT FUND,
U.S. TREASURY FUND,
TAX-EXEMPT FUND,
CONNECTICUT MUNICIPAL MONEY MARKET FUND AND
MASSACHUSETTS MUNICIPAL MONEY MARKET FUND
(THE "FUNDS")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The first paragraph under the heading "Information Services--Galaxy
Shareholder Services" on page 30 of the Prospectus is amended and restated in
its entirety to read as follows:
For account information and recent exchange transactions, Direct
Investors can call Galaxy Shareholder Services Monday through Friday,
between the hours of 8:00 a.m. and 6:00 p.m. (Eastern Time) at
1-800-628-0414.
2. The third sentence of the second paragraph under the heading "Management
of the Funds-- Administrator" on page 33 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Funds, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Funds and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
3. The following paragraph is added under the heading "Miscellaneous" on
page 36 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
MONEY MARKET FUND,
GOVERNMENT FUND,
U.S. TREASURY FUND AND
TAX-EXEMPT FUND
(THE "FUNDS")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third sentence of the second paragraph under the heading "Management
of the Funds-- Administrator" on pages 24-25 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Funds, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Funds and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
2. The following paragraph is added under the heading "Miscellaneous" on
page 28 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
MONEY MARKET FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on page 16 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
2. The following paragraph is added under the heading "Miscellaneous" on
page 20 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
GOVERNMENT FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third sentence of the second paragraph under the heading
"Management of the Fund--Administrator" on page 14 of the Prospectus is
amended and restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly,
at the annual rate of .09% of the first $2.5 billion of combined average
daily net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of
combined average daily net assets, .075% of the next $7 billion of
combined average daily net assets, .065% of the next $3 billion of
combined average daily net assets, .06% of the next $3 billion of
combined average daily net assets and .0575% of combined average daily
net assets in excess of $18 billion.
2. The following paragraph is added under the heading "Miscellaneous"
on page 17 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if
the computer systems used by Fleet and Galaxy's other service providers
do not properly process and calculate date-related information and data
from and after January 1, 2000. This is commonly known as the "Year 2000
Problem." Fleet is taking steps to address the Year 2000 Problem with
respect to the computer systems that it uses and to obtain assurance that
comparable steps are being taken by Galaxy's other major service
providers. At this time, however, there can be no assurance that these
steps will be sufficient to avoid any adverse impact on Galaxy as a
result of the Year 2000 Problem.
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
U.S. TREASURY FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third sentence of the second paragraph under the heading "Management
of the Fund--Administrator" on page 13 of the Prospectus is amended and restated
to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
2. The following paragraph is added under the heading "Miscellaneous" on
page 16 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
<PAGE>
THE GALAXY FUND
("GALAXY")
INSTITUTIONAL GOVERNMENT
MONEY MARKET FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third sentence of the second paragraph under the heading
"Management of the Fund-- Administrator" on pages 12-13 of the Prospectus is
amended and restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly,
at the annual rate of .09% of the first $2.5 billion of combined average
daily net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of
combined average daily net assets, .075% of the next $7 billion of
combined average daily net assets, .065% of the next $3 billion of
combined average daily net assets, .06% of the next $3 billion of
combined average daily net assets and .0575% of combined average daily
net assets in excess of $18 billion.
2. The following paragraph is added under the heading "Miscellaneous"
on page 14 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if
the computer systems used by Fleet and Galaxy's other service providers
do not properly process and calculate date-related information and data
from and after January 1, 2000. This is commonly known as the "Year 2000
Problem." Fleet is taking steps to address the Year 2000 Problem with
respect to the computer systems that it uses and to obtain assurance that
comparable steps are being taken by Galaxy's other major service
providers. At this time, however, there can be no assurance that these
steps will be sufficient to avoid any adverse impact on Galaxy as a
result of the Year 2000 Problem.
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
EQUITY VALUE FUND, EQUITY GROWTH FUND,
EQUITY INCOME FUND, INTERNATIONAL EQUITY FUND,
SMALL COMPANY EQUITY FUND, ASSET ALLOCATION FUND,
SMALL CAP VALUE FUND, GROWTH AND INCOME FUND AND
STRATEGIC EQUITY FUND
(THE "FUNDS")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The sixth and eighth paragraphs on page 1 of the Prospectus are amended
and restated in their entirety to read as follows:
The SMALL COMPANY EQUITY FUND'S investment objective is to seek capital
appreciation. The Fund attempts to achieve this objective by investing
primarily in the securities of companies with market value capitalizations
of $1.5 billion or less that the Fund's investment adviser believes
represent the potential for significant capital appreciation. Under normal
market and economic conditions, the Fund will invest at least 65% of its
assets in the equity securities of companies with market value
capitalizations of $1.5 billion or less.
The SMALL CAP VALUE FUND'S investment objective is to provide long-term
capital appreciation. The Fund attempts to achieve this objective by
investing, under normal market and economic conditions, at least 65% of its
total assets in equity securities of companies that have a market value
capitalization of up to $1.5 billion.
2. The second paragraph on page 2 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in each Fund. Trust Shares
are offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in each
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares in a Fund represent equal pro rata
interests in the Fund, except they bear different expenses which reflect the
differences in the range of services provided to them. Retail A Shares and
Retail B Shares and A Prime Shares and B Prime Shares are offered under
separate prospectuses. See "Financial Highlights," "Management of the Funds"
and "Description of Galaxy and Its Shares" herein.
3. The second sentence of the third paragraph on page 2 of the Prospectus
is amended and restated to read as follows:
Oechsle International Advisors, LLC serves as the sub-adviser to the
International Equity Fund.
1
<PAGE>
4. The first paragraph under the heading "Financial Highlights" on page 5
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in each Fund. Galaxy is also
authorized to issue four additional series of shares in each Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in a Fund, except that (i) effective October 1, 1994
Retail A Shares of a Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .30% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of a Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .95% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of a Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of a Fund bear
the expenses incurred under Galaxy's Distribution and Services Plan for B
Prime Shares at an annual rate of up to 1.00% of the average daily net asset
value of the Fund's outstanding B Prime Shares, and (v) Trust Shares, Retail
A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear differing
transfer agency expenses. Retail A Shares and Retail B Shares and A Prime
Shares and B Prime Shares are offered under separate prospectuses.
5. The first sentence of the first paragraph under the heading "Investment
Objectives and Policies" on page 15 of the Prospectus has been amended and
restated to read as follows:
Fleet Investment Advisors Inc. ("Fleet"), the Funds' investment adviser,
and with respect to the International Equity Fund, Oechsle International
Advisors, LLC ("Oechsle"), the Fund's sub-adviser, will use their best
efforts to achieve each Fund's investment objective, although such
achievement cannot be assured.
6. The first two paragraphs under the heading "Investment Objectives and
Policies--Small Company Equity Fund" on page 18 of the Prospectus are amended
and restated in their entirety to read as follows:
The Small Company Equity Fund's investment objective is to seek capital
appreciation. The Fund attempts to achieve its investment objective by
investing primarily in the securities of companies with market value
capitalizations of $1.5 billion or less ("Small Capitalization Securities")
which Fleet believes represent the potential for significant capital
appreciation.
Small Capitalization Securities in which the Fund may invest include
common stock, preferred stock, securities convertible into common stock,
rights and warrants. Under normal market and economic conditions, at least
65% of the Fund's total assets will be invested in the equity securities of
companies with market value capitalizations of $1.5 billion or less. For
temporary defensive purposes, the Fund may also invest in corporate debt
obligations.
7. The first paragraph under the heading "Investment Objectives and
Policies--Small Cap Value Fund" on page 20 of the Prospectus is amended and
restated in its entirety to read as follows:
The Small Cap Value Fund's investment objective is to provide long-term
capital appreciation. The Fund attempts to achieve its investment objective
by investing, under normal market and economic conditions, at least 65% of
its assets in equity securities of companies that have a market value
capitalization of up to $1.5 billion.
8. The following two paragraphs are added under the heading "Investment
Objectives and Policies--Special Risk Considerations" on pages 22-23 of the
Prospectus:
2
<PAGE>
EUROPEAN CURRENCY UNIFICATION
Many European countries are about to adopt a single European currency,
the euro. On January 1, 1999, the euro will become legal tender for all
countries participating in the Economic and Monetary Union ("EMU"). A new
European Central Bank will be created to manage the monetary policy of the
new unified region. On the same date, the exchange rates will be irrevocably
fixed between the EMU member countries. National currencies will continue to
circulate until they are replaced by euro coins and bank notes by the middle
of 2002.
This change is likely to significantly impact the European capital
markets in which the International Equity Fund invests and may result in the
Fund facing additional risks in pursuing its investment objective. These
risks, which include, but are not limited to, uncertainty as to the proper
tax treatment of the currency conversion, volatility of currency exchange
rates as a result of the conversion, uncertainty as to capital market
reaction, conversion costs that may affect issuer profitability and
creditworthiness, and lack of participation by some European countries, may
increase the volatility of the Fund's net asset value per share.
9. The second sentence of the third paragraph under the heading "Taxes" on
pages 39-40 of the Prospectus is deleted.
10. The third, fourth and fifth sentences of the fifth paragraph under the
heading "Management of the Funds--Investment Adviser and Sub-Adviser"on pages
41-42 of the Prospectus are amended and restated in their entirety to read as
follows:
Pursuant to such authorization, Fleet has appointed Oechsle, a Delaware
limited liability company, with principal offices at One International
Place, Boston, Massachusetts 02210, as the sub-adviser to the International
Equity Fund. The manager member of Oechsle is Oechsle Group, LLC. Fleet
Financial Group, Inc. owns a 35% non-voting interest in Oechsle. Oechsle is
the successor to Oechsle International Advisors, L.P. ("Oechsle L.P."),
which had discretionary management authority over approximately $12.6
billion in assets as of June 30, 1998.
11. The second sentence of the seventh paragraph under the heading
"Management of the Funds-- Investment Adviser and Sub-Adviser" on page 42 of the
Prospectus is amended and restated to read as follows:
For the fiscal year ended October 31, 1997, Oechsle L.P. received
sub-advisory fees from Fleet at the effective annual rate of .36% of the
Fund's average daily net assets.
12. The third and fourth sentences of the eleventh paragraph under the
heading "Management of the Funds--Investment Adviser and Sub-Adviser" on page 42
of the Prospectus are amended and restated to read as follows:
Mr. Keesler, Member and Portfolio Manager, has been with Oechsle and its
predecessor since 1986. Ms. Harris has been a Portfolio Manager at Oechsle
and its predecessor since 1995.
13. The third sentence of the second paragraph under the heading "Management
of the Funds-- Administrator" on page 44 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Funds, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Funds and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
3
<PAGE>
14. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on pages 44-45 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Funds as follows: Class C shares (Trust Shares), Class C-Special Series
1 shares (Retail A Shares), Class C-Special Series 2 shares (Retail B
Shares), Class C-Special Series 3 shares (A Prime Shares) and Class
C-Special Series 4 shares (B Prime Shares), each series representing
interests in the Equity Value Fund; Class G-Series 1 shares (Trust Shares),
Class G-Series 2 shares (Retail A Shares), Class G-Series 3 shares (Retail B
Shares), Class G-Series 4 shares (A Prime Shares) and Class G-Series 5
shares (B Prime Shares), each series representing interests in the
International Equity Fund; Class H-Series 1 shares (Trust Shares), Class
H-Series 2 shares (Retail A Shares), Class H-Series 3 shares (Retail B
Shares), Class H-Series 4 shares (A Prime Shares) and Class H-Series 5
shares (B Prime Shares), each series representing interests in the Equity
Growth Fund; Class I-Series 1 shares (Trust Shares), Class I-Series 2 shares
(Retail A Shares), Class I-Series 3 shares (Retail B Shares), Class I-Series
4 shares (A Prime Shares) and Class I-Series 5 shares (B Prime Shares), each
series representing interests in the Equity Income Fund; Class K-Series 1
shares (Trust Shares), Class K-Series 2 shares (Retail A Shares), Class
K-Series 3 shares (Retail B Shares), Class K-Series 4 shares (A Prime
Shares) and Class K-Series 5 shares (B Prime Shares), each series
representing interests in the Small Company Equity Fund; Class N-Series 1
shares (Trust Shares), Class N-Series 2 shares (Retail A Shares), Class
N-Series 3 shares (Retail B Shares), Class N-Series 4 shares (A Prime
Shares) and Class N-Series 5 shares (B Prime Shares), each series
representing interests in the Asset Allocation Fund; Class U-Series 1 shares
(Trust Shares), Class U-Series 2 shares (Retail A Shares), Class U-Series 3
shares (Retail B Shares), Class U-Series 4 shares (A Prime Shares) and Class
U-Series 5 shares (B Prime Shares), each series representing interests in
the Growth and Income Fund; Class X-Series 1 shares (Trust Shares), Class
X-Series 2 shares (Retail A Shares), Class X-Series 3 shares (Retail B
Shares), Class X-Series 4 shares (A Prime Shares) and Class X-Series 5
shares (B Prime Shares), each series representing interests in the Small Cap
Value Fund; and Class AA-Series 1 shares (Trust Shares), Class AA-Series 2
shares (Retail A Shares), Class AA-Series 3 shares (Retail B Shares), Class
AA-Series 4 shares (A Prime Shares) and Class AA-Series 5 shares (B Prime
Shares), each series representing interests in the Strategic Equity Fund.
Each Fund is classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Funds' Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in a Fund bear their pro rata portion of all
operating expenses paid by that Fund except as follows: Holders of a series
of shares of a Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of a Fund may bear differing transfer agency expenses. Each
series of shares of the Funds may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
15. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 47 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Funds.
4
<PAGE>
16. The following paragraph is added under the heading "Miscellaneous" on
page 48 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
5
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
EQUITY VALUE FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third paragraph on page 1 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page 3
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is also
authorized to issue four additional series of shares in the Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in the Fund, except that (i) effective October 1, 1994
Retail A Shares of the Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .30% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of the Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .95% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution and Services Plan for
B Prime Shares at an annual rate of up to 1.00% of the average daily net
asset value of the Fund's outstanding B Prime Shares, and (v) Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear
differing transfer agency expenses. Retail A Shares and Retail B Shares and
A Prime Shares and B Prime Shares are offered under separate prospectuses.
3. The second sentence of the third paragraph under the heading "Taxes" on
pages 16-17 of the Prospectus is deleted.
<PAGE>
4. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on page 19 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
5. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on pages 19-20 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Fund as follows: Class C shares (Trust Shares), Class C-Special Series 1
shares (Retail A Shares), Class C-Special Series 2 shares (Retail B Shares),
Class C-Special Series 3 shares (A Prime Shares) and Class C-Special Series
4 shares (B Prime Shares), each series representing interests in the Fund.
The Fund is classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
6. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 22 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
7. The following paragraph is added under the heading "Miscellaneous" on
page 23 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
2
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
EQUITY GROWTH FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third paragraph on page 1 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page 3
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is also
authorized to issue four additional series of shares in the Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in the Fund, except that (i) effective October 1, 1994
Retail A Shares of the Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .30% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of the Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .95% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution and Services Plan for
B Prime Shares at an annual rate of up to 1.00% of the average daily net
asset value of the Fund's outstanding B Prime Shares, and (v) Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear
differing transfer agency expenses. Retail A Shares and Retail B Shares and
A Prime Shares and B Prime Shares are offered under separate prospectuses.
3. The second sentence of the third paragraph under the heading "Taxes" on
pages 16-17 of the Prospectus is deleted.
4. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on page 19 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of
<PAGE>
combined average daily net assets of the Fund and the other portfolios
offered by Galaxy (collectively, the "Portfolios"), .085% of the next $2.5
billion of combined average daily net assets, .075% of the next $7 billion
of combined average daily net assets, .065% of the next $3 billion of
combined average daily net assets, .06% of the next $3 billion of combined
average daily net assets and .0575% of combined average daily net assets in
excess of $18 billion.
5. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on pages 19-20 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Fund as follows: Class H-Series-1 shares (Trust Shares), Class H-Series
2 shares (Retail A Shares), Class H-Series 3 shares (Retail B Shares), Class
H-Series 4 shares (A Prime Shares) and Class H-Series 5 shares (B Prime
Shares), each series representing interests in the Fund. The Fund is
classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
6. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 22 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
7. The following paragraph is added under the heading "Miscellaneous" on
page 23 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
2
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
EQUITY INCOME FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third paragraph on page 1 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page 3
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is also
authorized to issue four additional series of shares in the Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in the Fund, except that (i) effective October 1, 1994
Retail A Shares of the Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .30% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of the Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .95% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution and Services Plan for
B Prime Shares at an annual rate of up to 1.00% of the average daily net
asset value of the Fund's outstanding B Prime Shares, and (v) Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear
differing transfer agency expenses. Retail A Shares and Retail B Shares and
A Prime Shares and B Prime Shares are offered under separate prospectuses.
3. The second sentence of the third paragraph under the heading "Taxes" on
pages 16-17 of the Prospectus is deleted.
<PAGE>
4. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on page 19 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
5. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on pages 19-20 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Fund as follows: Class I-Series 1 shares (Trust Shares), Class I-Series
2 shares (Retail A Shares), Class I-Series 3 shares (Retail B Shares), Class
I-Series 4 shares (A Prime Shares) and Class I-Series 5 shares (B Prime
Shares), each series representing interests in the Fund. The Fund is
classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
6. The second sentence of the second paragraph under the heading
"Performance Reporting" on pages 21-22 of the Prospectus is amended and restated
to read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
7. The following paragraph is added under the heading "Miscellaneous" on
page 22 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
2
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
INTERNATIONAL EQUITY FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third paragraph on page 1 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The second sentence of the fourth paragraph on page 1 of the Prospectus
is amended and restated to read as follows:
Oechsle International Advisors, LLC serves as the sub-adviser to the
Fund.
3. The first paragraph under the heading "Financial Highlights" on page 3
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is also
authorized to issue four additional series of shares in the Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in the Fund, except that (i) effective October 1, 1994
Retail A Shares of the Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .30% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of the Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .95% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution and Services Plan for
B Prime Shares at an annual rate of up to 1.00% of the average daily net
asset value of the Fund's outstanding B Prime Shares, and (v) Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear
differing transfer agency expenses. Retail A Shares and Retail B Shares and
A Prime Shares and B Prime Shares are offered under separate prospectuses.
<PAGE>
4. The first sentence of the last paragraph under the heading "Investment
Objective and Policies-- In General" on pages 5-6 of the Prospectus has been
amended and restated to read as follows:
Fleet Investment Advisors Inc. ("Fleet"), the Fund's investment adviser,
and Oechsle International Advisors, LLC ("Oechsle"), the Fund's sub-adviser,
will use their best efforts to achieve the Fund's investment objective,
although such achievement cannot be assured.
5. The following two paragraphs are added under the heading "Investment
Objective and Policies-- Special Risk Considerations" on pages 6-7 of the
Prospectus:
EUROPEAN CURRENCY UNIFICATION
Many European countries are about to adopt a single European currency,
the euro. On January 1, 1999, the euro will become legal tender for all
countries participating in the Economic and Monetary Union ("EMU"). A new
European Central Bank will be created to manage the monetary policy of the
new unified region. On the same date, the exchange rates will be irrevocably
fixed between the EMU member countries. National currencies will continue to
circulate until they are replaced by euro coins and bank notes by the middle
of 2002.
This change is likely to significantly impact the European capital
markets in which the Fund invests and may result in the Fund facing
additional risks in pursuing its investment objective. These risks, which
include, but are not limited to, uncertainty as to the proper tax treatment
of the currency conversion, volatility of currency exchange rates as a
result of the conversion, uncertainty as to capital market reaction,
conversion costs that may affect issuer profitability and creditworthiness,
and lack of participation by some European countries, may increase the
volatility of the Fund's net asset value per share.
6. The second sentence of the third paragraph under the heading "Taxes" on
pages 17-18 of the Prospectus is deleted.
7. The third, fourth and fifth sentences of the fifth paragraph under the
heading "Management of the Fund--Investment Adviser and Sub-Adviser" on page 20
of the Prospectus are amended and restated in their entirety to read as follows:
Pursuant to such authorization, Fleet has appointed Oechsle, a Delaware
limited liability company, with principal offices at One International
Place, Boston, Massachusetts 02210, as the sub-adviser to the Fund. The
manager member of Oechsle is Oechsle Group, LLC. Fleet Financial Group, Inc.
owns a 35% non-voting interest in Oechsle. Oechsle is the successor to
Oechsle International Advisors, L.P. ("Oechsle L.P."), which had
discretionary management authority over approximately $12.6 billion in
assets as of June 30, 1998.
8. The second sentence of the seventh paragraph under the heading
"Management of the Fund-- Investment Adviser and Sub-Adviser" on page 20 of the
Prospectus is amended and restated to read as follows:
For the fiscal year ended October 31, 1997, Oechsle L.P. received
sub-advisory fees from Fleet at the effective annual rate of .36% of the
Fund's average daily net assets.
9. The third and fourth sentences of the eleventh paragraph under the
heading "Management of the Fund-- Investment Adviser and Sub-Adviser" on page 20
of the Prospectus are amended and restated to read as follows:
Mr. Keesler, Member and Portfolio Manager, has been with Oechsle and its
predecessor since 1986. Ms. Harris has been a Portfolio Manager at Oechsle
and its predecessor since 1995.
2
<PAGE>
10. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on page 21 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
11. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on pages 21-22 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Fund as follows: Class G-Series 1 shares (Trust Shares) Class G-Series 2
shares (Retail A Shares), Class G-Series 3 shares (Retail B Shares), Class
G-Series 4 shares (A Prime Shares) and Class G-Series 5 shares (B Prime
Shares), each series representing interests in the Fund. The Fund is
classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
12. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 24 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
13. The following paragraph is added under the heading "Miscellaneous" on
pages 24-25 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
3
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
SMALL COMPANY EQUITY FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The second and third paragraphs on page 1 of the Prospectus are amended
and restated in their entirety to read as follows:
The Fund's investment objective is to seek capital appreciation. The
Fund attempts to achieve this objective by investing primarily in the
securities of companies with market value capitalizations of $1.5 billion or
less that the Fund's investment adviser believes represent the potential for
significant capital appreciation. Under normal market and economic
conditions, the Fund will invest at least 65% of its assets in the equity
securities of companies with market value capitalizations of $1.5 billion or
less.
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page 3
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is also
authorized to issue four additional series of shares in the Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in the Fund, except that (i) effective October 1, 1994
Retail A Shares of the Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .30% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of the Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .95% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution and Services Plan for
B Prime Shares at an annual rate of up to 1.00% of the average daily net
asset value of the Fund's outstanding B Prime Shares, and (v) Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear
differing transfer agency expenses. Retail A Shares and Retail B Shares and
A Prime Shares and B Prime Shares are offered under separate prospectuses.
<PAGE>
3. The first two paragraphs under the heading "Investment Objective and
Policies--In General" on page 5 of the Prospectus are amended and restated in
their entirety to read as follows:
The Fund's investment objective is to seek capital appreciation. The
Fund attempts to achieve its investment objective by investing primarily in
the securities of companies with market value capitalizations of $1.5
billion or less ("Small Capitalization Securities") that Fleet Investment
Advisors Inc. ("Fleet"), the Fund's investment adviser, believes represent
the potential for significant capital appreciation.
Small Capitalization Securities in which the Fund may invest include
common stock, preferred stock, securities convertible into common stock,
rights and warrants. Under normal market and economic conditions, at least
65% of the Fund's total assets will be invested in the equity securities of
companies with market value capitalizations of $1.5 billion or less. For
temporary defensive purposes, the Fund may also invest in corporate debt
obligations.
4. The second sentence of the third paragraph under the heading "Taxes" on
page 17 of the Prospectus is deleted.
5. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on page 19 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
6. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on pages 19-20 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Fund as follows: Class K-Series 1 shares (Trust Shares), Class K-Series
2 shares (Retail A Shares), Class K-Series 3 shares (Retail B Shares), Class
K-Series 4 shares (A Prime Shares) and Class K-Series 5 shares (B Prime
Shares), each series representing interests in the Fund. The Fund is
classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
2
<PAGE>
7. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 22 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
8. The following paragraph is added under the heading "Miscellaneous" on
page 23 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
3
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
ASSET ALLOCATION FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third paragraph on page 1 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page 4
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is also
authorized to issue four additional series of shares in the Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in the Fund, except that (i) effective October 1, 1994
Retail A Shares of the Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .30% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of the Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .95% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution and Services Plan for
B Prime Shares at an annual rate of up to 1.00% of the average daily net
asset value of the Fund's outstanding B Prime Shares, and (v) Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear
differing transfer agency expenses. Retail A Shares and Retail B Shares and
A Prime Shares and B Prime Shares are offered under separate prospectuses.
3. The second sentence of the third paragraph under the heading "Taxes" on
page 19 of the Prospectus is deleted.
<PAGE>
4. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on pages 21-22 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
5. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on page 22 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Fund as follows: Class N-Series 1 shares (Trust Shares), Class N-Series
2 shares (Retail A Shares), Class N-Series 3 shares (Retail B Shares), Class
N-Series 4 shares (A Prime Shares) and Class N-Series 5 shares (B Prime
Shares), each series representing interests in the Fund. The Fund is
classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
6. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 24 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
7. The following paragraph is added under the heading "Miscellaneous" on
page 25 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
2
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
SMALL CAP VALUE FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The second and third paragraphs on page 1 of the Prospectus are amended
and restated in their entirety to read as follows:
The Fund's investment objective is to provide long-term capital
appreciation. The Fund attempts to achieve this objective by investing,
under normal market and economic conditions, at least 65% of its total
assets in equity securities of companies that have a market value
capitalization of up to $1.5 billion.
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page 3
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is also
authorized to issue four additional series of shares in the Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in the Fund, except that (i) effective October 1, 1994
Retail A Shares of the Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .30% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of the Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .95% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution and Services Plan for
B Prime Shares at an annual rate of up to 1.00% of the average daily net
asset value of the Fund's outstanding B Prime Shares, and (v) Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear
differing transfer agency expenses. Retail A Shares and Retail B Shares and
A Prime Shares and B Prime Shares are offered under separate prospectuses.
<PAGE>
3. The first paragraph under the heading "Investment Objectives and
Policies" on page 5 of the Prospectus is amended and restated in its entirety to
read as follows:
The Fund's investment objective is to provide long-term capital
appreciation. The Fund seeks to achieve its investment objective by
investing, under normal market and economic conditions, at least 65% of its
total assets in equity securities of companies that have a market value
capitalization of up to $1.5 billion.
4. The second sentence of the third paragraph under the heading "Taxes" on
page 18 of the Prospectus is deleted.
5. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on pages 20-21 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
6. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on page 21 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Fund as follows: Class X-Series 1 shares (Trust Shares), Class X-Series
2 shares (Retail A Shares), Class X-Series 3 shares (Retail B Shares), Class
X-Series 4 shares (A Prime Shares) and Class X-Series 5 shares (B Prime
Shares), each series representing interests in the Fund. The Fund is
classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
7. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 23 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
2
<PAGE>
8. The following paragraph is added under the heading "Miscellaneous" on
page 24 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
3
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
GROWTH AND INCOME FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third paragraph on page 1 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The first paragraph under the heading "Financial Highlights" on page 3
of the Prospectus is amended and restated in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Galaxy is also
authorized to issue four additional series of shares in the Fund, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares. As described
below under "Description of Galaxy and Its Shares," Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares represent equal
pro rata interests in the Fund, except that (i) effective October 1, 1994
Retail A Shares of the Fund bear the expenses incurred under Galaxy's
Shareholder Services Plan for Retail A Shares and Trust Shares at an annual
rate of up to .30% of the average daily net asset value of the Fund's
outstanding Retail A Shares, (ii) Retail B Shares of the Fund bear the
expenses incurred under Galaxy's Distribution and Services Plan for Retail B
Shares at an annual rate of up to .95% of the average daily net asset value
of the Fund's outstanding Retail B Shares, (iii) A Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution Plan for A Prime
Shares at an annual rate of up to .25% of the average daily net asset value
of the Fund's outstanding A Prime Shares, (iv) B Prime Shares of the Fund
bear the expenses incurred under Galaxy's Distribution and Services Plan for
B Prime Shares at an annual rate of up to 1.00% of the average daily net
asset value of the Fund's outstanding B Prime Shares, and (v) Trust Shares,
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares bear
differing transfer agency expenses. Retail A Shares and Retail B Shares and
A Prime Shares and B Prime Shares are offered under separate prospectuses.
3. The second sentence of the third paragraph under the heading "Taxes" on
page 18 of the Prospectus is deleted.
4. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on pages 20-21 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of
<PAGE>
combined average daily net assets of the Fund and the other portfolios
offered by Galaxy (collectively, the "Portfolios"), .085% of the next $2.5
billion of combined average daily net assets, .075% of the next $7 billion
of combined average daily net assets, .065% of the next $3 billion of
combined average daily net assets, .06% of the next $3 billion of combined
average daily net assets and .0575% of combined average daily net assets in
excess of $18 billion.
5. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on page 21 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of shares in each series of
the Fund as follows: Class U-Series 1 shares (Trust Shares), Class U-Series
2 shares (Retail A Shares), Class U-Series 3 shares (Retail B Shares), Class
U-Series 4 shares (A Prime Shares) and Class U-Series 5 shares (B Prime
Shares), each series representing interests in the Fund. The Fund is
classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's Retail A Shares,
Retail B Shares, A Prime Shares and B Prime Shares and these other
portfolios, which are offered through separate prospectuses, contact FD
Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
6. The second sentence of the second paragraph under the heading
"Performance Reporting" on page 23 of the Prospectus is amended and restated to
read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
7. The following paragraph is added under the heading "Miscellaneous" on
page 24 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
2
<PAGE>
THE GALAXY FUND
("GALAXY")
TRUST SHARES OF THE
STRATEGIC EQUITY FUND
(THE "FUND")
SUPPLEMENT DATED OCTOBER 31, 1998
TO PROSPECTUS DATED FEBRUARY 28, 1998
1. The third paragraph on page 1 of the Prospectus is amended and restated
in its entirety to read as follows:
This Prospectus describes the Trust Shares in the Fund. Trust Shares are
offered to investors maintaining qualified accounts at bank and trust
institutions, including institutions affiliated with Fleet Financial Group,
Inc., and to participants in employer-sponsored defined contribution plans.
Galaxy is also authorized to issue four additional series of shares in the
Fund, Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares.
Retail A Shares and Retail B Shares are offered primarily to individuals,
corporations or other entities purchasing either for their own accounts or
for the accounts of others and to FIS Securities, Inc., Fleet Securities,
Inc., Fleet Enterprises, Inc., Fleet Financial Group, Inc., its affiliates,
their correspondent banks and other qualified banks, savings and loan
associations and broker/dealers on behalf of their customers. A Prime Shares
and B Prime Shares are offered through selected broker-dealers to individual
and institutional customers. Trust Shares, Retail A Shares, Retail B Shares,
A Prime Shares and B Prime Shares represent equal pro rata interests in the
Fund, except they bear different expenses which reflect the differences in
the range of services provided to them. Retail A Shares and Retail B Shares
and A Prime Shares and B Prime Shares are offered under separate
prospectuses. See "Financial Highlights," "Management of the Fund" and
"Description of Galaxy and Its Shares" herein.
2. The second sentence of the third paragraph under the heading "Taxes" on
pages 15-16 of the Prospectus is deleted.
3. The third sentence of the second paragraph under the heading "Management
of the Fund-- Administrator" on page 18 of the Prospectus is amended and
restated to read as follows:
For the services provided to the Fund, Investor Services Group is
entitled to receive administration fees, computed daily and paid monthly, at
the annual rate of .09% of the first $2.5 billion of combined average daily
net assets of the Fund and the other portfolios offered by Galaxy
(collectively, the "Portfolios"), .085% of the next $2.5 billion of combined
average daily net assets, .075% of the next $7 billion of combined average
daily net assets, .065% of the next $3 billion of combined average daily net
assets, .06% of the next $3 billion of combined average daily net assets and
.0575% of combined average daily net assets in excess of $18 billion.
4. The first three paragraphs under the heading "Description of Galaxy and
Its Shares" on pages 18-19 of the Prospectus are amended and restated in their
entirety to read as follows:
Galaxy was organized as a Massachusetts business trust on March 31,
1986. Galaxy's Declaration of Trust authorizes the Board of Trustees to
classify or reclassify any unissued shares into one or more classes or
series of shares. Pursuant to such authority, the Board of Trustees has
authorized the issuance of an unlimited number of sares in each series of
the Fund as follows: Class AA-Series 1 shares (Trust Shares), Class
AA-Series 2 shares (Retail A Shares), Class AA-Series 3 shares (Retail B
Shares), Class AA-Series 4 shares (A Prime Shares) and Class AA-Series 5
shares (B Prime Shares), each series representing interests in the Fund. The
Fund is classified as a diversified company under the 1940 Act.
The Board of Trustees has also authorized the issuance of additional
classes and series of shares representing interests in other investment
portfolios of Galaxy. For information concerning the Fund's
<PAGE>
Retail A Shares, Retail B Shares, A Prime Shares and B Prime Shares and
these other portfolios, which are offered through separate prospectuses,
contact FD Distributors at 1-800-628-0414.
Shares of each series in the Fund bear their pro rata portion of all
operating expenses paid by the Fund except as follows: Holders of a series
of shares of the Fund bear fees that are paid under any distribution and/or
shareholder servicing plans applicable to such series. In addition, each
series of shares of the Fund may bear differing transfer agency expenses.
Each series of shares of the Fund may also have different sales charges,
conversion features, exchange and other privileges. The differences in
expenses and sales charges of each series of shares will affect their
performance. Standardized yield and total return quotations are computed
separately for each series of shares.
5. The second sentence of the second paragraph under the heading
"Performance Reporting" on pages 20-21 of the Prospectus is amended and restated
to read as follows:
Performance data will be computed separately for Trust Shares, Retail A
Shares, Retail B Shares, A Prime Shares and B Prime Shares of the Fund.
6. The following paragraph is added under the heading "Miscellaneous" on
page 21 of the Prospectus:
YEAR 2000 RISKS
Like other investment companies, financial and business organizations
and individuals around the world, Galaxy could be adversely affected if the
computer systems used by Fleet and Galaxy's other service providers do not
properly process and calculate date-related information and data from and
after January 1, 2000. This is commonly known as the "Year 2000 Problem."
Fleet is taking steps to address the Year 2000 Problem with respect to the
computer systems that it uses and to obtain assurance that comparable steps
are being taken by Galaxy's other major service providers. At this time,
however, there can be no assurance that these steps will be sufficient to
avoid any adverse impact on Galaxy as a result of the Year 2000 Problem.
2
