<PAGE>
497(e) File Nos. 33-5819 and 811-5034
Supplement dated September 24, 1998 to Prospectus dated March 2, 1998
CitiFunds(SM) National Tax Free Income Portfolio
The "Prospectus Summary -- Dividends" section on page 3 of the Prospectus is
replaced with the following:
DIVIDENDS: Dividends, if any, are declared daily and paid monthly. Net
capital gains, if any, are distributed annually. See "Dividends and
Distributions."
The first sentence of the "Dividends and Distributons" section on page 12 of
the Prospectus is replaced with the following:
Substantially all of the Fund's net income from dividends and
interest, if any, is declared daily and paid to its shareholders of
record as a dividend monthly, on or about the last day of each month.
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497(e) File Nos. 33-5819 and 811-5034
Supplement dated September 24, 1998 to Prospectus dated March 2, 1998
CitiFunds(SM) New York Tax Free Income Portfolio
The "Prospectus Summary -- Dividends" section on page 3 of the Prospectus is
replaced with the following:
DIVIDENDS: Dividends, if any, are declared daily and paid monthly. Net
capital gains, if any, are distributed annually. See "Dividends and
Distributions."
The first sentence of the "Dividends and Distributons" section on page 14 of
the Prospectus is replaced with the following:
Substantially all of the Fund's net income from dividends and
interest, if any, is declared daily and paid to its shareholders of
record as a dividend monthly, on or about the last day of each month.
