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THE GALAXY FUND
GALAXY SHORT-TERM BOND FUND
GALAXY INTERMEDIATE GOVERNMENT INCOME FUND
GALAXY HIGH QUALITY BOND FUND
GALAXY CORPORATE BOND FUND
RETAIL A SHARES, RETAIL B SHARES AND/OR TRUST SHARES
SUPPLEMENT DATED JUNE 20, 2000
TO STATEMENT OF ADDITIONAL INFORMATION DATED FEBRUARY 29, 2000
1. The following paragraphs are added to the section entitled "Investment
Strategies, Policies and Risks - Other Investment Policies and Risk
Considerations" immediately after the paragraphs entitled "Zero Coupons
Bonds" on page 21 of the Statement of Additional Information:
U.S. TREASURY ROLLS
Each Fund may hold certain investments in connection with U.S.
Treasury rolls. In U.S. Treasury rolls, a Fund sells outstanding U.S.
Treasury securities and buys back on a delayed settlement basis the
same U.S. Treasury securities. During the period prior to the delayed
settlement date, the assets from the sale of the U.S. Treasury
securities are invested in certain cash equivalent instruments. U.S.
Treasury rolls entail the risk that a Fund could suffer an opportunity
loss if the counterparty to the roll failed to perform its obligations
on the settlement date, and if market conditions changed adversely.
Each Fund intends, however, to enter into U.S. Treasury rolls only
with U.S. Government securities dealers recognized by the Federal
Reserve Bank or with member banks of the Federal Reserve System. Each
Fund will hold and maintain in a segregated account until the
settlement date cash or other liquid assets in an amount equal to the
forward purchase price.
For financial reporting and tax purposes, the Funds propose to
treat U.S. Treasury rolls as two separate transactions, one involving
the purchase of a security and a separate transaction involving a
sale. The Funds do not currently intend to enter into U.S. Treasury
rolls that are accounted for as a financing.
2. The second full paragraph on page 24 of the Statement of Additional
Information is amended to read as follows:
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With respect to Investment Limitation No. 2 above, (a) each Fund
intends to limit any borrowings (including reverse repurchase
agreements) to not more than 10% of the value of its total assets at
the time of such borrowing, and (b) mortgage dollar rolls and U.S.
Treasury rolls entered into by a Fund that are not accounted for as
financings shall not constitute borrowings.
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THE GALAXY FUND
GALAXY ASSET ALLOCATION FUND
GALAXY EQUITY INCOME FUND
GALAXY GROWTH AND INCOME FUND
GALAXY STRATEGIC EQUITY FUND
GALAXY EQUITY VALUE FUND
GALAXY EQUITY GROWTH FUND
GALAXY INTERNATIONAL EQUITY FUND
GALAXY SMALL CAP VALUE FUND
GALAXY SMALL COMPANY EQUITY FUND
RETAIL A SHARES, RETAIL B SHARES AND TRUST SHARES
SUPPLEMENT DATED JUNE 20, 2000
TO STATEMENT OF ADDITIONAL INFORMATION DATED FEBRUARY 29, 2000
1. The following paragraphs are added to the section entitled "Investment
Strategies, Policies and Risks - Other Investment Policies and Risk
Considerations" immediately after the paragraphs entitled "Restricted and
Illiquid Securities" on page 30 of the Statement of Additional Information:
U.S. TREASURY ROLLS
The Asset Allocation Fund may hold certain investments in
connection with U.S. Treasury rolls. In U.S. Treasury rolls, the Fund
sells outstanding U.S. Treasury securities and buys back on a delayed
settlement basis the same U.S. Treasury securities. During the period
prior to the delayed settlement date, the assets from the sale of the
U.S. Treasury securities are invested in certain cash equivalent
instruments. U.S. Treasury rolls entail the risk that the Fund could
suffer an opportunity loss if the counterparty to the roll failed to
perform its obligations on the settlement date, and if market
conditions changed adversely. The Fund intends, however, to enter into
U.S. Treasury rolls only with U.S. Government securities dealers
recognized by the Federal Reserve Bank or with member banks of the
Federal Reserve System. The Fund will hold and maintain in a
segregated account until the settlement date cash or other liquid
assets in an amount equal to the forward purchase price.
For financial reporting and tax purposes, the Fund proposes to
treat U.S. Treasury rolls as two separate transactions, one involving
the purchase of a security and a separate transaction involving a
sale. The
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Fund does not currently intend to enter into U.S. Treasury rolls that
are accounted for as a financing.
2. The first full paragraph on page 37 of the Statement of Additional
Information is amended to read as follows:
With respect to Investment Limitation No. 2 above, (a) the Equity
Value Fund intends to limit any borrowings (including reverse
repurchase agreements) to not more than 10% of the value of its total
assets at the time of such borrowing and each of the Asset Allocation,
Equity Income, Strategic Equity, Equity Growth, International Equity
and Small Company Equity Funds intends to limit any borrowings
(including reverse repurchase agreements) to not more than 33% of the
value of its total assets at the time of such borrowing, and (b)
mortgage dollar rolls and U.S. Treasury rolls entered into by the
Asset Allocation Fund that are not accounted for as financings shall
not constitute borrowings.
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THE GALAXY FUND
GALAXY ASSET ALLOCATION FUND
GALAXY EQUITY INCOME FUND
GALAXY GROWTH AND INCOME FUND
GALAXY STRATEGIC EQUITY FUND
GALAXY EQUITY VALUE FUND
GALAXY EQUITY GROWTH FUND
GALAXY INTERNATIONAL EQUITY FUND
GALAXY SMALL CAP VALUE FUND
GALAXY SMALL COMPANY EQUITY FUND
GALAXY SHORT-TERM BOND FUND
GALAXY INTERMEDIATE GOVERNMENT INCOME FUND
GALAXY HIGH QUALITY BOND FUND
GALAXY TAX-EXEMPT BOND FUND
PRIME A SHARES AND PRIME B SHARES
SUPPLEMENT DATED JUNE 20, 2000
TO STATEMENT OF ADDITIONAL INFORMATION DATED FEBRUARY 29, 2000
1. The following paragraphs are added to the section entitled "Investment
Strategies, Policies and Risks - Other Investment Policies and Risk
Considerations" immediately after the paragraphs entitled "Restricted and
Illiquid Securities" on page 40 of the Statement of Additional Information:
U.S. TREASURY ROLLS
The Asset Allocation, Short-Term Bond, Intermediate Government
Income and High Quality Bond Funds may hold certain investments in
connection with U.S. Treasury rolls. In U.S. Treasury rolls, a Fund
sells outstanding U.S. Treasury securities and buys back on a delayed
settlement basis the same U.S. Treasury securities. During the period
prior to the delayed settlement date, the assets from the sale of the
U.S. Treasury securities are invested in certain cash equivalent
instruments. U.S. Treasury rolls entail the risk that the Fund could
suffer an opportunity loss if the counterparty to the roll failed to
perform its obligations on the settlement date, and if market
conditions changed adversely. Each Fund intends, however, to enter
into U.S. Treasury rolls only with U.S. Government securities dealers
recognized by the Federal Reserve Bank or with member banks of the
Federal Reserve System. Each Fund will hold and maintain in a
segregated account until the settlement date cash or other liquid
assets in an amount equal to the forward purchase price.
<PAGE>
For financial reporting and tax purposes, the Funds propose to
treat U.S. Treasury rolls as two separate transactions, one involving
the purchase of a security and a separate transaction involving a
sale. The Funds do not currently intend to enter into U.S. Treasury
rolls that are accounted for as a financing.
2. The second full paragraph on page 50 of the Statement of Additional
Information is amended to read as follows:
With respect to Investment Limitation No. 2 above, (a) the Equity
Value Fund intends to limit any borrowings (including reverse
repurchase agreements) to not more than 10% of the value of its total
assets at the time of such borrowing and each of the Asset Allocation,
Equity Income, Strategic Equity, Equity Growth, International Equity
and Small Company Equity Funds intends to limit any borrowings
(including reverse repurchase agreements) to not more than 33% of the
value of its total assets at the time of such borrowing, and (b)
mortgage dollar rolls and U.S. Treasury rolls entered into by the
Asset Allocation Fund that are not accounted for as financings shall
not constitute borrowings.
3. The carryover paragraph on pages 50-51 of the Statement of Additional
Information is amended to read as follows:
With respect to Investment Limitation No. 34 above, (a) each of
the Short-Term Bond, Intermediate Government Income and High Quality
Bond Funds intends to limit any borrowings (including reverse
repurchase agreements) to not more than 10% of the value of its total
assets at the time of such borrowing, and (b) mortgage dollar rolls
and U.S. Treasury rolls entered into by a Fund that are not accounted
for as financings shall not constitute borrowings.
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THE GALAXY FUND
GALAXY MONEY MARKET FUND
GALAXY U.S. TREASURY FUND
GALAXY TAX-EXEMPT FUND
GALAXY SHORT-TERM BOND FUND
GALAXY INTERMEDIATE GOVERNMENT INCOME FUND
GALAXY HIGH QUALITY BOND FUND
GALAXY RHODE ISLAND MUNICIPAL BOND FUND
GALAXY ASSET ALLOCATION FUND
GALAXY GROWTH AND INCOME FUND
GALAXY INTERNATIONAL EQUITY FUND
BKB SHARES
SUPPLEMENT DATED JUNE 20, 2000
TO STATEMENT OF ADDITIONAL INFORMATION DATED FEBRUARY 28, 2000
1. The following paragraphs are added to the section entitled "Investment
Strategies, Policies and Risks - Other Investment Policies and Risk
Considerations" immediately after the paragraph entitled "Bank Investment
Contracts" on page 41 of the Statement of Additional Information:
U.S. TREASURY ROLLS
The Asset Allocation, Short-Term Bond, Intermediate Government
Income and High Quality Bond Funds may hold certain investments in
connection with U.S. Treasury rolls. In U.S. Treasury rolls, a Fund
sells outstanding U.S. Treasury securities and buys back on a delayed
settlement basis the same U.S. Treasury securities. During the period
prior to the delayed settlement date, the assets from the sale of the
U.S. Treasury securities are invested in certain cash equivalent
instruments. U.S. Treasury rolls entail the risk that the Fund could
suffer an opportunity loss if the counterparty to the roll failed to
perform its obligations on the settlement date, and if market
conditions changed adversely. Each Fund intends, however, to enter
into U.S. Treasury rolls only with U.S. Government securities dealers
recognized by the Federal Reserve Bank or with member banks of the
Federal Reserve System. Each Fund will hold and maintain in a
segregated account until the settlement date cash or other liquid
assets in an amount equal to the forward purchase price.
<PAGE>
For financial reporting and tax purposes, the Funds propose to
treat U.S. Treasury rolls as two separate transactions, one involving
the purchase of a security and a separate transaction involving a
sale. The Funds do not currently intend to enter into U.S. Treasury
rolls that are accounted for as a financing.
2. The first full paragraph following the numbered paragraphs on page 46 of
the Statement of Additional Information is amended to read as follows:
With respect to Investment Limitation No. 19 above, (a) each of
the Short-Term Bond, Intermediate Government Income and High Quality
Bond Funds intends to limit any borrowings (including reverse
repurchase agreements) to not more than 10% of the value of its total
assets at the time of such borrowing, and (b) mortgage dollar rolls
and U.S. Treasury rolls entered into by a Fund that are not accounted
for as financings shall not constitute borrowings.
3. The first full paragraph following the numbered paragraphs on page 50 of
the Statement of Additional Information is amended to read as follows:
With respect to Investment Limitation No. 45 above, (a) each of
the Asset Allocation and International Equity Funds intends to limit
any borrowings (including reverse repurchase agreements) to not more
than 33% of the value of its total assets at the time of such
borrowing, and (b) mortgage dollar rolls and U.S. Treasury rolls
entered into by the Asset Allocation Fund that are not accounted for
as financings shall not constitute borrowings.
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