<PAGE>
Rule 497(e) File Nos. 33-5819 and 811-5034
Supplement
DATED SEPTEMBER 5, 2000 TO
PROSPECTUS DATED MAY 1, 2000
CITI(SM) NATIONAL TAX FREE INCOME FUND
(formerly CitiFunds(R) National Tax Free Income Portfolio)
The name of the Fund has been changed to Citi National Tax Free Income Fund. All
front-end sales charges on Class A shares are waived effective July 14, 2000,
and all Class B shares have been converted to Class A shares without imposition
of any contingent deferred sales charge. Class B shares are no longer available.
Effective September 11, 2000, exchanges into certain of the CitiFunds or other
mutual funds previously available for exchange will no longer be allowed. Please
consult your Service Agent for more information.
CITITRADE PROGRAM. Effective September 5, 2000, shares may be purchased through
the Cititrade Program by customers that have established a Cititrade Account.
For more detailed information on how to open a Cititrade Account, please visit
the Cititrade website at www.mycititrade.com, or call a Cititrade account
representative at 1-888-663-CITI[2484].
Once you open your Cititrade Account, you will be subject to the general account
requirements of the Cititrade Program, as described in the Cititrade account
application, and will have access to all the electronic financial services made
available from time to time over the Internet by the Cititrade Program. The
prospectus for the Fund is readily available for viewing and printing on the
Cititrade website. Please note that www.mycititrade.com is an inactive textual
reference only, meaning that the information contained on the website is not
part of the prospectus for the Fund and is not incorporated therein or herein by
reference.
Investors who have established an account with Cititrade may receive shareholder
information about the Fund they invest in electronically, unless they otherwise
request to receive the information in paper format. Shareholder information
includes prospectuses, financial reports, confirmations, proxy solicitations and
financial statements. Cititrade shareholders may also receive other Fund-related
correspondence through their e-mail account.
You may incur costs imposed by your Internet service provider for on-line access
to shareholder documents and maintaining an e-mail account. The Fund reserves
the right to deliver paper-based documents to investors in certain
circumstances, at no cost to you.
<PAGE>
Rule 497(e) File Nos. 33-5819 and 811-5034
Supplement
DATED SEPTEMBER 5, 2000 TO
PROSPECTUS DATED MAY 1, 2000
CITI(SM) NEW YORK TAX FREE INCOME FUND
(formerly CitiFunds(R) New York Tax Free Income Portfolio)
The name of the Fund has been changed to Citi New York Tax Free Income Fund. All
front-end sales charges on Class A shares are waived effective July 14, 2000,
and all Class B shares have been converted to Class A shares without imposition
of any contingent deferred sales charge. Class B shares are no longer available.
Effective September 11, 2000, exchanges into certain of the CitiFunds or other
mutual funds previously available for exchange will no longer be allowed. Please
consult your Service Agent for more information.
CITITRADE PROGRAM. Effective September 5, 2000, shares may be purchased through
the Cititrade Program by customers that have established a Cititrade Account.
For more detailed information on how to open a Cititrade Account, please visit
the Cititrade website at www.mycititrade.com, or call a Cititrade account
representative at 1-888-663-CITI[2484].
Once you open your Cititrade Account, you will be subject to the general account
requirements of the Cititrade Program, as described in the Cititrade account
application, and will have access to all the electronic financial services made
available from time to time over the Internet by the Cititrade Program. The
prospectus for the Fund is readily available for viewing and printing on the
Cititrade website. Please note that www.mycititrade.com is an inactive textual
reference only, meaning that the information contained on the website is not
part of the prospectus for the Fund and is not incorporated therein or herein by
reference.
Investors who have established an account with Cititrade may receive shareholder
information about the Fund they invest in electronically, unless they otherwise
request to receive the information in paper format. Shareholder information
includes prospectuses, financial reports, confirmations, proxy solicitations and
financial statements. Cititrade shareholders may also receive other Fund-related
correspondence through their e-mail account.
You may incur costs imposed by your Internet service provider for on-line access
to shareholder documents and maintaining an e-mail account. The Fund reserves
the right to deliver paper-based documents to investors in certain
circumstances, at no cost to you.
<PAGE>
Rule 497(e) File Nos. 33-5819 and 811-5034
Supplement
DATED SEPTEMBER 5, 2000 TO
PROSPECTUS DATED MAY 1, 2000
CITI(SM) CALIFORNIA TAX FREE INCOME FUND
(formerly CitiFunds(R) California Tax Free Income Portfolio)
The name of the Fund has been changed to Citi California Tax Free Income Fund.
All front-end sales charges on Class A shares are waived effective July 14,
2000, and all Class B shares have been converted to Class A shares without
imposition of any contingent deferred sales charge. Class B shares are no longer
available.
Effective September 11, 2000, exchanges into certain of the CitiFunds or other
mutual funds previously available for exchange will no longer be allowed. Please
consult your Service Agent for more information.
CITITRADE PROGRAM. Effective September 5, 2000, shares may be purchased through
the Cititrade Program by customers that have established a Cititrade Account.
For more detailed information on how to open a Cititrade Account, please visit
the Cititrade website at www.mycititrade.com, or call a Cititrade account
representative at 1-888-663-CITI[2484].
Once you open your Cititrade Account, you will be subject to the general account
requirements of the Cititrade Program, as described in the Cititrade account
application, and will have access to all the electronic financial services made
available from time to time over the Internet by the Cititrade Program. The
prospectus for the Fund is readily available for viewing and printing on the
Cititrade website. Please note that www.mycititrade.com is an inactive textual
reference only, meaning that the information contained on the website is not
part of the prospectus for the Fund and is not incorporated therein or herein by
reference.
Investors who have established an account with Cititrade may receive shareholder
information about the Fund they invest in electronically, unless they otherwise
request to receive the information in paper format. Shareholder information
includes prospectuses, financial reports, confirmations, proxy solicitations and
financial statements. Cititrade shareholders may also receive other Fund-related
correspondence through their e-mail account.
You may incur costs imposed by your Internet service provider for on-line access
to shareholder documents and maintaining an e-mail account. The Fund reserves
the right to deliver paper-based documents to investors in certain
circumstances, at no cost to you.
<PAGE>
Rule 497(e) File Nos. 33-5819 and 811-5034
Supplement
DATED SEPTEMBER 5, 2000 TO
STATEMENT OF ADDITIONAL INFORMATION DATED MAY 3, 2000
CITI(SM) NATIONAL TAX FREE INCOME FUND
(formerly CitiFunds(R) National Tax Free Income Portfolio)
CITI(SM) NEW YORK TAX FREE INCOME FUND
(formerly CitiFunds(R) New York Tax Free Income Portfolio)
CITI(SM) CALIFORNIA TAX FREE INCOME FUND
(formerly CitiFunds(R) California Tax Free Income Portfolio)
The Funds have changed their names to Citi National Tax Free Income Fund, Citi
New York Tax Free Income Fund and Citi California Tax Free Income Fund.
Effective September 5, 2000, the Funds have new business addresses, new officers
and new distributors. More information is provided below.
ADDRESS.
CitiFunds Tax Free Income Trust
388 Greenwich Street
New York, New York 10013
Telephone 800-451-2010
DISTRIBUTOR. The new Distributor for the Funds is Salomon Smith Barney, Inc.
("Salomon Smith Barney"), 388 Greenwich Street, New York, New York 10013.
Salomon Smith Barney will serve as the Distributor of each Fund's shares
pursuant to Distribution Agreements with CitiFunds Tax Free Income Trust (the
"Trust") with respect to the Funds (the "Distribution Agreements"). Under the
Distribution Agreements, Salomon Smith Barney is obligated to use its best
efforts to sell shares of the Funds.
The Distribution Agreements are terminable with or without cause, without
penalty, on 60 days' notice by the Board of Trustees of the Trust or by vote of
holders of a majority of the relevant Fund's outstanding voting securities, or
on 90 days' notice by Salomon Smith Barney. Unless otherwise terminated, each
Distribution Agreement shall continue for successive annual periods so long as
such continuance is specifically approved at least annually by (a) the Trust's
Board of Trustees, or (b) by a vote of a majority (as defined in the Investment
Company Act of 1940, as amended (the "1940 Act")) of the relevant Fund's
outstanding voting securities, provided that in either event the continuance is
also approved by a majority of the Board members of the Trust who are not
interested persons (as defined in the 1940 Act) of any party to the Distribution
Agreement, by vote cast in person at a meeting called for the purpose of voting
on such approval. The Distribution Agreements will terminate automatically in
the event of their assignment, as defined in the 1940 Act and the rules and
regulations thereunder.
OFFICERS. The new officers of the Trust and their principal occupations during
the past five years will be as set forth below. Their titles may have varied
during that period. Asterisks indicate that those officers are "interested
persons" (as defined in the 1940 Act) of the Funds. Unless otherwise indicated
below, the address of each officer is 388 Greenwich Street, New York, New York
10013.
HEATH B. McLENDON* (age 66) - President of the Trust; Chairman, President, and
Chief Executive Officer of SSB Citi Fund Management LLC ("SSB Citi") (since
March 1996); Managing Director of Salomon Smith Barney (since August 1993);
President of Travelers Investment Adviser, Inc. ("TIA"); Chairman or Co-
Chairman of the Board of seventy-one investment companies associated with
Salomon Smith Barney. His address is 7 World Trade Center, New York, New York
10048.
LEWIS E. DAIDONE* (age 42) - Senior Vice President and Treasurer of the Trust;
Managing Director of Salomon Smith Barney; Chief Financial Officer of the Smith
Barney mutual funds; Treasurer and Senior Vice President or Executive Vice
President of sixty-one investment companies associated with Citigroup; Director
and Senior Vice President of SSB Citi and TIA. His address is 125 Broad Street,
New York, New York 10004.
IRVING DAVID* (age 39) - Controller of the Trust; Director of Salomon Smith
Barney; formerly Assistant Treasurer of First Investment Management Company.
Controller or Assistant Treasurer of fifty-three investment companies associated
with Citigroup. His address is 125 Broad Street, New York, New York 10004.
FRANCES GUGGINO* (age 42) - Assistant Controller of the Trust; Vice President of
Citibank, N.A. since February, 1991.
PAUL BROOK* (age 46) - Assistant Controller of the Trust; Director of Salomon
Smith Barney; Controller or Assistant Treasurer of forty-three investment
companies associated with Citigroup; from 1997-1998 Managing Director of AMT
Capital Services Inc.; prior to 1997 Partner with Ernst & Young LLP. His address
is 125 Broad Street, New York, New York 10004.
ANTHONY PACE* (age 35); Assistant Treasurer of the Trust. Mr. Pace is Vice
President - Mutual Fund Administration for Salomon Smith Barney Inc. Since 1986,
when he joined the company as a Fund Accountant, Mr. Pace has been responsible
for accounts payable, financial reporting and performance of mutual funds and
other investment products.
MARIANNE MOTLEY* (age 41) -- Assistant Treasurer of the Trust. Ms. Motley is
Director - Mutual Fund Administration for Salomon Smith Barney Inc. Since 1994,
when she joined the company as a Vice President, Ms. Motley has been responsible
for accounts payable, financial reporting and performance of mutual funds and
other investment products.
ROBERT I. FRENKEL, ESQ.* (age 45) -- Secretary of the Trust Mr. Frenkel is a
Managing Director and General Counsel - Global Mutual Funds for SSB Citi Asset
Management Group. Since 1994, when he joined Citibank as a Vice President and
Division Counsel, he has been responsible for legal affairs relating to mutual
funds and other investment products.
THOMAS C. MANDIA, ESQ.* (age 38) -- Assistant Secretary of the Trust. Mr. Mandia
is a Vice President and Associate General Counsel for SSB Citi Asset Management
Group. Since 1992, he has been responsible for legal affairs relating to mutual
funds and other investment products.
ROSEMARY D. EMMENS, ESQ.* (age 30) -- Assistant Secretary of the Trust. Ms.
Emmens has been a Vice President and Associate General Counsel of SSB Citi Asset
Management Group since 1998, where she has been responsible for legal affairs
relating to mutual funds and other investment products. Before joining Citibank,
Ms. Emmens was Counsel at The Dreyfus Corporation since 1995.
HARRIS GOLDBLAT, ESQ.* (age 30) -- Assistant Secretary of the Trust. Associate
General Counsel at SSB Citi Asset Management Group since April 2000. From June
1997 to March 2000, he was an associate at the law firm of Stroock & Stroock &
Lavan LLP, New York City, and from September 1996 to May 1997, he was an
associate at the law firm of Sills Cummis Radin Tischman Epstein & Gross,
Newark, NJ. From August 1995 to September 1996, Mr. Goldblat served as a law
clerk to the Honorable James M. Havey, P.J.A.D., in New Jersey.
The officers of the Trust also hold comparable positions with certain other
funds for which Salomon Smith Barney or its affiliates serve as the distributor
or administrator.
