497(e) File Nos. 033-05819 and 811-05034
Supplement Dated June 15, 1998 to Statement of Additional Information Dated
March 2, 1998
CitiFunds (SM) National Tax Free Income Portfolio
CitiFunds (SM) New York Tax Free Income Portfolio
The paragraph entitled "Participation Interests" on pages 5 and 6 of the
Statement of Additional Information is replaced in its entirety with the
following:
The Trust may purchase from banks on behalf of each Fund participation
interests in all or part of specific holdings of Municipal Obligations. The
Trust has the right to sell the participation interest back to the bank and
draw on the letter of credit or guarantee for all or any part of the full
principal amount of the participation interest in the security, plus accrued
interest. In some cases, these rights may not be exercisable in the event of a
default on the underlying Municipal Obligations; in these cases, the underlying
Municipal Obligations must meet the Funds' credit standards at the time of
purchase of the participation interests. Each participation interest is backed
by an irrevocable letter of credit or guarantee of the selling bank.
Participation interests will only be purchased if in the opinion of counsel
interest income on such interests will be taxexempt when distributed as
dividends to shareholders of the Funds. Participation interests include
municipal lease obligations which are deemed to be illiquid unless otherwise
determined by the Board of Trustees.
