As filed with the Securities and Exchange Commission on December 16, 1998
File Nos. 33-6540
811-5033
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM N-1A
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 27
AND
REGISTRATION STATEMENT UNDER THE INVESTMENT
COMPANY ACT OF 1940
AMENDMENT NO. 28
CITIFUNDS FIXED INCOME TRUST*
(EXACT NAME OF REGISTRANT AS SPECIFIED IN CHARTER)
21 MILK STREET, 5TH FLOOR, BOSTON, MASSACHUSETTS 02109
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 617-423-1679
PHILIP W. COOLIDGE, 21 MILK STREET, 5TH FLOOR, BOSTON, MASSACHUSETTS 02109
(NAME AND ADDRESS OF AGENT FOR SERVICE)
COPY TO:
ROGER P. JOSEPH, BINGHAM DANA LLP, 150 FEDERAL STREET,
BOSTON, MASSACHUSETTS 02110
It is proposed that this filing will become effective on December 16,
1998, pursuant to paragraph (b) of Rule 485.
The Premium Portfolios, on behalf of Government Income Portfolio and
U.S. Fixed Income Portfolio, has also executed this registration statement.
- -------------------------------------------------------------------------
* Formerly, Landmark Fixed Income Funds.
<PAGE>
The Prospectus dated March 2, 1998, as supplemented November 1, 1998, of
CitiFunds Intermediate Income Portfolio is incorporated in this Post-Effective
Amendment No. 27 by reference to the Prospectus of CitiFunds Intermediate
Income Portfolio filed by the Registrant pursuant to Rule 497(c) under the
Securities Act of 1933, as amended (File No. 33-6540), with the Securities and
Exchange Commission on March 2, 1998 and to the supplement to the Prospectus of
CitiFunds Intermediate Income Portfolio filed by the Registrant pursuant to
Rule 497(e) under the Securities Act of 1933, as amended (File No. 33-6540),
with the Securities and Exchange Commission on October 30, 1998.
The Prospectus dated March 2, 1998 of CitiFunds Short-Term U.S. Government
Income Portfolio is incorporated in this Post-Effective Amendment No. 27 by
reference to the Prospectus of CitiFunds Short-Term U.S. Government Income
Portfolio filed by the Registrant pursuant to Rule 497(c) under the Securities
Act of 1933, as amended (File No. 33-6540), with the Securities and Exchange
Commission on March 2, 1998.
The Prospectus dated September 21, 1998 of CitiFunds Diversified Income
Portfolio is incorporated in this Post-Effective Amendment No. 27 by reference
to the Prospectus of CitiFunds Diversified Income Portfolio filed by the
Registrant pursuant to Rule 485(a) under the Securities Act of 1933, as amended
(File No. 33-6540), with the Securities and Exchange Commission on July 21,
1998.
<PAGE>
The Statement of Additional Information dated March 2, 1998 of CitiFunds
Intermediate Income Portfolio is incorporated in this Post-Effective Amendment
No. 27 by reference to the Statement of Additional Information of CitiFunds
Intermediate Income Portfolio filed by the Registrant pursuant to Rule 497(c)
under the Securities Act of 1933, as amended (File No. 33-6540), with the
Securities and Exchange Commission on March 2, 1998.
The Statement of Additional Information dated March 2, 1998 of CitiFunds
Short-Term U.S. Government Income Portfolio is incorporated in this
Post-Effective Amendment No. 27 by reference to the Statement of Additional
Information of CitiFunds Short-Term U.S. Government Income Portfolio filed by
the Registrant pursuant to Rule 497(c) under the Securities Act of 1933, as
amended (File No. 33-6540), with the Securities and Exchange Commission on
March 2, 1998.
The Statement of Additional Information dated September 21, 1998 of CitiFunds
Diversified Income Portfolio is incorporated in this Post-Effective Amendment
No. 27 by reference to the Statement of Additional Information of CitiFunds
Diversified Income Portfolio filed by the Registrant pursuant to Rule 485(a)
under the Securities Act of 1933, as amended (File No. 33-6540), with the
Securities and Exchange Commission on July 21, 1998.
<PAGE>
SUPPLEMENT DATED JANUARY 4, 1999
TO
PROSPECTUS DATED MARCH 2, 1998
FOR
CITIFUNDSSM SHORT-TERM U.S. GOVERNMENT INCOME PORTFOLIO
Beginning on January 4, 1999, CitiFunds Short-Term U.S. Government
Income Portfolio will offer Class A shares, which will be subject to an initial
sales charge.
Shares of the Fund that are outstanding on January 4, 1999 will be
classified as Class A shares. No sales charge will be payable as a result of
this classification. Investors holding Fund shares on that date will be able to
exchange those shares, and any shares acquired through capital appreciation and
the reinvestment of dividends and capital gains distributions on those shares,
into Class A shares of other CitiFunds and mutual funds managed or advised by
Citibank, N.A. without paying a sales charge.
EXPENSE SUMMARY. The following tables summarize estimated shareholder
transaction and annual operating expenses for Class A shares of the Fund and
the underlying Portfolio in which the Fund invests. For more information on
costs and expenses, see "Management" -page 14 of the Prospectus and "General
Information -Expenses" -page 20 of the Prospectus.*
SHAREHOLDER TRANSACTION EXPENSES CLASS A
Maximum sales load imposed on purchases
(as a percentage of offering price) 1.50%
Maximum sales load imposed on reinvested
dividends none
Maximum deferred sales load (as a percentage
of original purchase price or redemption proceeds,
whichever is less) none1
Redemption fee none
Exchange fee none
- ------------------------
1 Except for purchases of $500,000 or more. See "Class A Shares" below.
<PAGE>
--------------------------------
CITIFUNDS
SHORT-TERM U.S. GOVERNMENT
INCOME PORTFOLIO
CLASS A
- -------------------------------------------------------------------------------
ANNUAL FUND OPERATiNG EXPENSES (AS A
PERCENTAGE OF AVERAGE NET ASSETS)
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Management Fees 0.35%
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12b-1 Fees (after fee waivers and
reimbursements)(1)(2) 0.00%
- -------------------------------------------------------------------------------
Other Expenses
Shareholder Servicing Agent Fees 0.25%
Other Operating Expenses (after fee
waivers and reimbursements)(2) 0.20%
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Total Fund Operating Expenses (after fee
waivers and reimbursements)(2) 0.80%
- -------------------------------------------------------------------------------
* These tables are intended to assist investors in understanding the
various costs and expenses that a shareholder of the Fund will bear,
either directly or indirectly. The tables show the fees paid to various
service providers after giving effect to expected voluntary partial fee
waivers and reimbursements. There can be no assurance that the fee
waivers and reimbursements reflected in the tables will continue at
these levels. The information in the tables and in the example below is
based on the Fund's expenses for the fiscal year ended December 31,
1997, as revised to reflect current fees.
(1) 12b-1 distribution fees are asset-based sales charges. Long-term
shareholders in the Fund could pay more in sales charges than the
economic equivalent of the maximum front-end sales charges permitted by
the National Association of Securities Dealers, Inc.
(2) Absent fee waivers, 12b-1 Fees, Other Operating Expenses and Total Fund
Operating Expenses would be 0.20%, 0.50% and 1.60%, respectively.
Example: A shareholder would pay the following expenses on a $1,000 investment,
assuming a 5% annual return and redemption at the end of each period indicated
below:
- -------------------------------------------------------------------------------
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
- -------------------------------------------------------------------------------
CITIFUNDS SHORT-TERM U.S.
GOVERNMENT INCOME PORTFOLIO
Class A $23 $40 $59 $112
- -------------------------------------------------------------------------------
The Example assumes that all dividends are reinvested. Without waivers and
reimbursements, the amounts in the Example would be $31, $65, $101 and $202.
The assumption of a 5% annual return is required by the Securities and Exchange
Commission for all mutual funds, and is not a prediction of the Fund's future
<PAGE>
performance. THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES OF THE FUND. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN.
CLASS A SHARES. Beginning on January 4, 1999, the Fund will offer Class
A shares. Class A shares have a front-end, or initial, sales charge. This sales
charge may be reduced or eliminated in certain circumstances.
o Class A shares are sold at net asset value plus a front-end, or
initial, sales charge. The percentage sales charge goes down as
the amount of your investment in Class A shares goes up. See the
chart below for the percentage sales charge. After the initial
sales charge is deducted from your investment, the balance of your
investment is invested in the Fund.
The sales charge may also be reduced or eliminated in certain
circumstances, as described in "Class A Shares - Sales Charge
Reductions" below.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
SALES CHARGE SALES CHARGE BROKER/DEALER
AS A % OF AS A % OF COMMISSION AS
AMOUNT OF OFFERING PRICE YOUR A % OF
YOUR INVESTMENT INVESTMENT OFFERING PRICE
- ---------------------------------------------------------------------------------
<S> <C> <C> <C>
Less than $50,000 1.50% 1.52% 1.35%
- ---------------------------------------------------------------------------------
$50,000 to less than $250,000 1.00% 1.01% 0.90%
- ---------------------------------------------------------------------------------
$250,000 to less than $500,000 0.50% 0.51% 0.45%
- ---------------------------------------------------------------------------------
$500,000 or more none* none* up to .45%
- ---------------------------------------------------------------------------------
</TABLE>
*A contingent deferred sales charge may apply in certain
instances. See below.
o Class A shares pay distribution and service fees of up to 0.15% of
the average daily net assets represented by the Class A shares.
These fees are currently being waived in full. This fee waiver is
voluntary and may be terminated at any time.
o Purchases of $500,000 or more are not subject to an initial sales
charge, but are subject to a 1% contingent deferred sales charge
in the event of certain redemptions within 12 months following
purchase. See below.
o The Distributor will pay commissions to brokers, dealers and other
institutions that sell Class A shares of the Fund as shown in the
table above. The Distributor retains approximately 10% of the
sales charge.
CLASS A SHARES - SALES CHARGE REDUCTIONS:
o Reinvestment. The sales charge does not apply to Class A shares
acquired through the reinvestment of dividends and capital gains
distributions.
<PAGE>
o Eligible Purchasers. Class A shares may be purchased without a
sales charge by:
[] tax exempt organizations under Section 501(c)(3-13) of the
Internal Revenue Code
[] trust accounts for which Citibank, N.A or any subsidiary or
affiliate of Citibank acts as trustee and exercises
discretionary investment management authority
[] accounts for which Citibank or any subsidiary or affiliate of
Citibank performs investment advisory services or charges fees
for acting as custodian
[] directors or trustees (and their immediate families) of any
investment company for which Citibank or any subsidiary or
affiliate of Citibank serves as the investment adviser or as a
service or shareholder servicing agent
[] employees of Citibank and its affiliates, CFBDS, Inc. and its
affiliates or any Shareholder Servicing Agent and its
affiliates (including immediate families of any of the
foregoing)
[] investors participating in a fee-based or promotional
arrangement sponsored or advised by Citibank or its affiliates
[] investors participating in a rewards program that offers Fund
shares as an investment option based on an investor's balances
in selected Citigroup Inc. products and services
[] employees of members of the National Association of Securities
Dealers, Inc., provided that such sales are made upon the
assurance of the purchaser that the purchase is made for
investment purposes and that the securities will not be resold
except through redemption or repurchase
[] separate accounts used to fund certain unregistered variable
annuity contracts
[] direct rollovers by plan participants from a 401(k) plan
offered to Citigroup employees
[] shareholder accounts established through a reorganization or
similar form of business combination approved by the Fund's
Board of Trustees or by the Board of Trustees of any other
CitiFund or mutual fund managed or advised by Citibank (all of
such funds being referred to herein as CitiFunds) the terms of
which entitle those shareholders to purchase shares of the
Fund or any other CitiFund at net asset value without a sales
charge
[] employee benefit plans qualified under Section 401 of the
Internal Revenue Code, including salary reduction plans
qualified under Section 401(k) of the Code, subject to minimum
requirements as may be established by CFBDS with respect to
the number of employees or amount of purchase; currently,
these criteria require that:
+ the employer establishing the qualified plan have at least
50 eligible employees, or
<PAGE>
+ the amount invested by the qualified plan in the Fund or
in any combination of CitiFunds totals a minimum of
$500,000
[] investors purchasing $500,000 or more of Class A shares;
however, a contingent deferred sales charge will be imposed on
the investments in the event of certain share redemptions
within 12 months following the share purchase, at the rate of
1% of the lesser of the value of the shares redeemed (not
including reinvested dividends and capital gains
distributions) or the total cost of the shares; the contingent
deferred sales charge on Class A shares will be waived under
certain circumstances, as described below; in determining
whether a contingent deferred sales charge on Class A shares
is payable, and if so, the amount of the charge:
+ it is assumed that shares not subject to the contingent
deferred sales charge are the first redeemed followed by
other shares held for the longest period of time
+ all investments made during a calendar month will age one
month on the last day of the month and each subsequent
month
+ any applicable contingent deferred sales charge will be
deferred upon an exchange of Class A shares for Class A
shares of another CitiFund and deducted from the
redemption proceeds when the exchanged shares are
subsequently redeemed (assuming the contingent deferred
sales charge is then payable)
+ the holding period of Class A shares so acquired through
an exchange will be aggregated with the period during
which the original Class A shares were held
[] subject to appropriate documentation, investors where the
amount invested represents redemption proceeds from a mutual
fund (other than a CitiFund), if:
+ the redeemed shares were subject to an initial sales
charge or a deferred sales charge (whether or not actually
imposed), and
+ the redemption has occurred no more than 60 days prior to
the purchase of Class A shares of the Fund
[] an investor who has a business relationship with an investment
consultant or other registered representative who joined a
broker-dealer which has a sales agreement with CFBDS from
another investment firm within six months prior to the date of
purchase by the investor, if:
+ the investor redeems shares of another mutual fund sold
through the investment firm that previously employed that
investment consultant or other registered representative,
and either paid an initial sales charge or was at some
time subject to, but did not actually pay, a deferred
<PAGE>
sales charge or redemption fee with respect to the
redemption proceeds,
+ the redemption is made within 60 days prior to the
investment in the Fund, and
+ the net asset value of the shares of the Fund sold to that
investor without a sales charge does not exceed the
proceeds of the redemption
o Reduced Sales Charge Plan. A qualified group may purchase shares
as a single purchaser under the reduced sales charge plan. The
purchases by the group are lumped together and the sales charge is
based on the lump sum. A qualified group must:
[] have been in existence for more than six months
[] have a purpose other than acquiring Fund shares at a discount
[] satisfy uniform criteria that enable CFBDS to realize
economies of scale in its costs of distributing shares
[] have more than ten members
[] be available to arrange for group meetings between
representatives of the Fund and the members
[] agree to include sales and other materials related to the Fund
in its publications and mailings to members at reduced or no
cost to the Distributor
[] seek to arrange for payroll deduction or other bulk
transmission of investments to the Fund
o Right of Accumulation. Eligible investors are permitted to
purchase Class A shares of the Fund at the public offering price
applicable to the total of:
[] the dollar amount then being purchased, plus
[] an amount equal to the then-current net asset value or cost
(whichever is higher) of the purchaser's combined holdings in
certain CitiFunds
See the Statement of Additional Information for more information.
o Letter of Intent. If an investor anticipates purchasing $25,000 or
more of Class A shares of the Fund alone or in combination with
any of the classes of certain other CitiFunds within a 13-month
period, by completing a letter of intent the investor may obtain
the shares at the same reduced sales charge as though the total
quantity were invested in one lump sum, subject to granting a
power of attorney to redeem shares if the intended purchases are
not completed. See the Statement of Additional Information for
more information.
o Reinstatement Privilege. Shareholders who have redeemed Class A
shares may reinstate their Fund account without a sales charge up
to the dollar amount redeemed (with a credit for any contingent
deferred sales charge paid) by purchasing Class A shares of the
<PAGE>
Fund within 90 days after the redemption. To take advantage of
this reinstatement privilege, shareholders must notify their
Shareholder Servicing Agent in writing at the time the privilege
is exercised.
o Waivers of the Contingent Deferred Sales Charge. The contingent
deferred sales charge on Class A shares will be waived in
connection with:
[] exchanges into Class A shares of certain CitiFunds
[] a total or partial redemption made within one year of the
death of the shareholder; this waiver is available where the
deceased shareholder is either the sole shareholder or owns
the shares with his or her spouse as a joint tenant with right
of survivorship, and applies only to redemption of shares held
at the time of death
[] a lump sum or other distribution in the case of an Individual
Retirement Account (IRA), a self-employed individual
retirement plan (Keogh Plan) or a custodian account under
Section 403(b) or the Internal Revenue Code, in each case
following attainment of age 59 1/2
[] a total or partial redemption resulting from any distribution
following retirement in the case of a tax-qualified retirement
plan
[] a redemption resulting from a tax-free return of an excess
contribution to an IRA
EXCHANGES
o Shares of the Fund may be exchanged for Class A shares of certain
other CitiFunds, or may be acquired through an exchange of Class A
shares of those funds. Class A shares also may be exchanged for
shares of certain CitiFunds money market funds that offer only a
single class of shares, unless the Class A shares are subject to a
contingent deferred sales charge. No initial sales charge is
imposed on shares being acquired through an exchange unless Class
A shares are being acquired and the sales charge for Class A
shares of the fund being exchanged into is greater than the
current sales charge of the Fund (in which case an initial sales
charge will be imposed at a rate equal to the difference).
Investors whose shares are outstanding on January 4, 1999 will be
able to exchange those Class A shares, and any shares acquired
through capital appreciation and the reinvestment of dividends and
capital gains distributions on those shares, into Class A shares
of the other funds without paying and sales charge. No contingent
deferred sales charge is imposed on Class A shares that are
subject to a CDSC when they are exchanged for Class A shares of
certain other CitiFunds. This exchange privilege may be changed or
terminated at any time with at least 60 days' notice, when notice
is required by applicable rules and regulations.
DISTRIBUTION PLAN. The Fund has adopted a Distribution Plan for Class A
shares in accordance with Rule 12b-1 under the 1940 Act. Under the Plan, the
<PAGE>
Fund may pay monthly fees at an annual rate not to exceed 0.15% of the average
daily net assets represented by Class A shares of the Fund. These fees may be
used to make payments to the Distributor for distribution services and to
others as compensation for the sale of shares of the applicable class of the
Fund, for advertising, marketing or other promotional activity, and for
preparation, printing and distribution of prospectuses, statements of
additional information and reports for recipients other than regulators and
existing shareholders. The Fund also may make payments to the Distributor and
others for providing personal service or the maintenance of shareholder
accounts. Under the Plan, Class A shares may also pay an additional fee of up
to 0.05% of the average daily net assets represented by the Class A shares in
anticipation of, or as reimbursement for, expenses incurred in connection with
print or electronic media advertising in connection with the sale of Class A
shares. The Fund did not pay this fee during its most recent fiscal year, and
does not anticipate paying it during the current fiscal year.
The amounts paid to each recipient may vary based upon certain factors,
including, among other things, the levels of sales of Fund shares and/or
shareholder services provided.
The Distributor provides to the Trustees quarterly a written report of
amounts expended pursuant to the Plan and the purposes for which the
expenditures were made.
During the period they are in effect, the Plan and related Distribution
Agreement obligate the Fund to pay fees to the Distributor and others as
compensation for their services, not as reimbursement for specific expenses
incurred. Thus, even if these entities' expenses exceed the fees provided for
under the Plan, the Fund will not be obligated to pay more than those fees and,
if their expenses are less than the fees paid to them, they will realize a
profit. The Fund will pay the fees to the Distributor and others until the Plan
or Distribution Agreement is terminated or not renewed. In that event, the
Distributor's or other recipient's expenses in excess of fees received or
accrued through the termination date will be the Distributor's or other
recipient's sole responsibility and not obligations of the Fund.
<PAGE>
CONDENSED FINANCIAL INFORMATION. The information in the following table
supplements the financial information contained in "Condensed Financial
Information" in the Fund's prospectus. The numbers in the table below are
unaudited. For more recent performance information, call 1-800-625-4554.
- ------------------------------------------------------------------------
CITIFUNDS SHORT-TERM
U.S. GOVERNMENT INCOME
PORTFOLIO -
SIX MONTHS ENDED JUNE
30, 1998
(UNAUDITED)
- ------------------------------------------------------------------------
Net Asset Value, beginning of period $9.61
- ------------------------------------------------------------------------
Income from Operations:
Net investment income 0.237
Net realized and unrealized gain (loss) on
investments 0.023
- ------------------------------------------------------------------------
Total from operations 0.260
- ------------------------------------------------------------------------
Less Distributions From:
Net investment income (0.240)
Net realized gain --
- ------------------------------------------------------------------------
Total distributions (0.240)
- ------------------------------------------------------------------------
Net Asset Value, end of period $9.63
- ------------------------------------------------------------------------
- ------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- ------------------------------------------------------------------------
Net assets, end of period (000's omitted) $23,801
- ------------------------------------------------------------------------
Ratio of expenses to average net assets (A) 0.80%*
- ------------------------------------------------------------------------
Ratio of net investment income to average net
assets 5.06%*
- ------------------------------------------------------------------------
Portfolio turnover 159%
- ------------------------------------------------------------------------
Total Return 2.73%**
- ------------------------------------------------------------------------
Note: If certain agents of the Fund and its underlying portfolio had
not voluntarily agreed to waive all or a portion of their fees for the
periods indicated and expenses were not reduced for fees paid
indirectly, the net investment income per share and the ratios would
have been as follows:
- ------------------------------------------------------------------------
Net investment income per share $0.234
- ------------------------------------------------------------------------
RATIOS:
- ------------------------------------------------------------------------
Expenses to average net assets (A) 1.60%*
- ------------------------------------------------------------------------
Net investment income to average net assets 4.26%*
- ------------------------------------------------------------------------
(A) Includes allocated expenses for the period indicated from the Government
Income Portfolio.
* Annualized
** Not annualized
<PAGE>
SUPPLEMENT DATED JANUARY 4, 1999
TO
STATEMENT OF ADDITIONAL INFORMATION DATED MARCH 2, 1998
FOR
CITIFUNDSSM SHORT-TERM U.S. GOVERNMENT INCOME PORTFOLIO
SALES CHARGES. Shares of the Fund are sold at net asset value, plus a
front-end, or initial, sales charge that may be reduced on purchases involving
substantial amounts and that may be eliminated in certain circumstances.
PERFORMANCE. Total rates of return for the Fund may be calculated on
investments at various sales charge levels or at net asset value. Any
performance data which is based on a reduced sales charge or net asset value
would be reduced if the maximum sales charge were taken into account.
LETTER OF INTENT. If an investor anticipates purchasing $25,000 or more
of Class A shares of the Fund alone or in combination with any of the classes
of other CitiFunds or of any other mutual fund managed or advised by Citibank
(all of such funds being referred to herein as CitiFunds) within a 13-month
period, the investor may obtain the shares at the same reduced sales charge as
though the total quantity were invested in one lump sum by completing a letter
of intent on the terms described below. Subject to acceptance by CFBDS, Inc.,
the Fund's distributor, and the conditions mentioned below, each purchase will
be made at a public offering price applicable to a single transaction of the
dollar amount specified in the letter of intent.
o The shareholder's Shareholder Servicing Agent must inform CFBDS
that the letter of intent is in effect each time shares are
purchased.
o The shareholder makes no commitment to purchase additional shares,
but if his or her purchases within 13 months plus the value of
shares credited toward completion of the letter of intent do not
total the sum specified, an increased sales charge will apply as
described below.
o A purchase not originally made pursuant to a letter of intent may
be included under a subsequent letter of intent executed within 90
days of the purchase if CFBDS is informed in writing of this
intent within the 90-day period.
o The value of shares of the Fund presently held, at cost or maximum
offering price (whichever is higher), on the date of the first
purchase under the letter of intent, may be included as a credit
toward the completion of the letter, but the reduced sales charge
applicable to the amount covered by the letter is applied only to
new purchases.
<PAGE>
o Instructions for issuance of shares in the name of a person other
than the person signing the letter of intent must be accompanied
by a written statement from the Shareholder Servicing Agent
stating that the shares were paid for by the person signing the
letter.
o Neither income dividends nor capital gains distributions taken in
additional shares will apply toward the completion of the letter
of intent.
o The value of any shares redeemed or otherwise disposed of by the
purchaser prior to termination or completion of the letter of
intent are deducted from the total purchases made under the letter
of intent.
If the investment specified in the letter of intent is not completed
(either prior to or by the end of the 13-month period), the Shareholder
Servicing Agent will redeem, within 20 days of the expiration of the letter of
intent, an appropriate number of the shares in order to realize the difference
between the reduced sales charge that would apply if the investment under the
letter of intent had been completed and the sales charge that would normally
apply to the number of shares actually purchased. By completing and signing the
letter of intent, the shareholder irrevocably grants a power of attorney to the
Shareholder Servicing Agent to redeem any or all shares purchased under the
letter of intent, with full power of substitution.
RIGHT OF ACCUMULATION. A shareholder qualifies for cumulative quantity
discounts on the purchase of Class A shares when his or her new investment,
together with the current offering price value of all holdings of that
shareholder in the CitiFunds, reaches a discount level. For example, if a Fund
shareholder owns shares valued at $200,000 and purchases an additional $50,000
of Class A shares of the Fund, the sales charge for the additional $50,000
purchase would be at the rate of 0.50% (the rate applicable to single
transactions from $250,000 to less than $500,000). A shareholder must provide
the Shareholder Servicing Agent with information to verify that the quantity
sales charge discount is applicable at the time the investment is made.
SERVICE FEES. The Fund pays fees for distribution and shareholder
servicing pursuant to a Distribution Plan adopted with respect to Class A
shares of the Fund in accordance with Rule 12b-1 under the Investment Company
Act of 1940, as amended. The Plan provides that the Fund may pay monthly fees
at an annual rate not to exceed 0.15% of the average daily net assets
represented by Class A shares of the Fund. Under the Plan, Class A shares may
also pay an additional fee of up to 0.05% of the average daily net assets
represented by the Class A shares in anticipation of, or as reimbursement for,
expenses incurred in connection with print or electronic media advertising in
connection with the sale of Class A shares. The Fund did not pay this fee
during its most recent fiscal year, and does not anticipate paying it during
the current fiscal year.
<PAGE>
FINANCIAL STATEMENTS. The financial statements (unaudited) for
CitiFunds Short-Term U.S. Government Income Portfolio (Portfolio of Investments
at June 30, 1998, Statement of Assets and Liabilities at June 30, 1998,
Statement of Operations for the six months ended June 30, 1998, Statement of
Changes in Net Assets for the six months ended June 30, 1998 and the year ended
December 31, 1997, and Financial Highlights for the six months ended June 30,
1998, the years ended December 31, 1997, 1996, 1995 and 1994 and the period
June 25, 1993 (commencement of operations) to December 31, 1993), which are
included in the Semi-Annual Report to Shareholders of CitiFunds Short-Term U.S.
Government Income Portfolio, are incorporated herein by reference.
<PAGE>
SUPPLEMENT DATED JANUARY 4, 1999
TO
PROSPECTUS DATED MARCH 2, 1998 FOR
CITIFUNDSSM INTERMEDIATE INCOME PORTFOLIO
AND
PROSPECTUS DATED SEPTEMBER 21, 1998 FOR
CITIFUNDSSM DIVERSIFIED INCOME PORTFOLIO
Beginning on January 4, 1999, CitiFunds Intermediate Income Portfolio
and CitiFunds Diversified Income Portfolio will each offer two classes of
shares: Class A and Class B.
Shares of each Fund that are outstanding on January 4, 1999 will be
classified as Class A shares. No sales charge will be payable as a result of
this classification. Investors holding Fund shares on that date will be able to
exchange those shares, and any shares acquired through capital appreciation and
the reinvestment of dividends and capital gains distributions on those shares,
into Class A shares of other CitiFunds and mutual funds managed or advised by
Citibank, N.A. without paying a sales charge.
Investors purchasing shares of the Funds on or after January 4, 1999
may select Class A or Class B shares, with different sales charges and expense
levels. Please determine which class of shares best fits your particular
situation. See "Classes of Shares" below.
EXPENSE SUMMARY. The following tables summarize estimated shareholder
transaction and annual operating expenses for Class A and Class B shares of the
Funds. For more information on the costs and expenses of each Fund, see
"Management" and "General Information - Expenses" in each Fund's Prospectus.*
<TABLE>
<CAPTION>
SHAREHOLDER TRANSACTION EXPENSES CLASS A CLASS B
<S> <C> <C>
Maximum sales load imposed on purchases
(as a percentage of offering price) 4.50% none
Maximum sales load imposed on reinvested
dividends none none
Maximum deferred sales load (as a percentage
of original purchase price or redemption proceeds,
whichever is less) none1 4.50%
Redemption fee none none
Exchange fee none none
</TABLE>
- ------------------------
1 Except for purchases of $500,000 or more. See "Class A Shares" below.
<PAGE>
-----------------------------------------------
CITIFUNDS
INTERMEDIATE CITIFUNDS
INCOME DIVERSIFIED INCOME
PORTFOLIO PORTFOLIO
CLASS A CLASS B CLASS A CLASS B
- ------------------------------------------------------------------------
ANNUAL FUND OPERATING
EXPENSES (AS A
PERCENTAGE OF
AVERAGE NET ASSETS)
- ------------------------------------------------------------------------
Management Fees (after
fee waivers and
reimbursements)
(1)(2) 0.28% 0.28% 0.60% 0.60%
- ------------------------------------------------------------------------
12b-1 Fees (including
service fees)(3) 0.25% 0.75% 0.25% 0.75%
- ------------------------------------------------------------------------
Other Expenses (after
fee waivers and
reimbursements)(2) 0.37% 0.37% 0.25% 0.25%
- ------------------------------------------------------------------------
Total Fund Operating
Expenses (after fee
waivers and
reimbursements)(2) 0.90% 1.40% 1.10% 1.60%
- ------------------------------------------------------------------------
* These tables are intended to assist investors in understanding the
various costs and expenses that a shareholder will bear, either
directly or indirectly. The tables show the fees paid to various
service providers after giving effect to expected voluntary partial fee
waivers and reimbursements. There can be no assurance that the fee
waivers and reimbursements reflected in the tables will continue at
these levels. The information in the tables and in the example below
for CitiFunds Intermediate Income Portfolio is based on the Fund's
expenses for the fiscal year ended December 31, 1997, as revised to
reflect current fees. Because CitiFunds Diversified Income Portfolio is
newly organized, all amounts in the tables and in the example below are
estimated for the current fiscal year and information is given in the
example below only for one and three year periods.
(1) A combined fee for investment advisory and administrative services.
(2) Absent fee waivers, management fees, other expenses and total fund
operating expenses would be 0.70%, 0.37% and 1.32%, respectively, for
Class A shares of CitiFunds Intermediate Income Portfolio; 0.70%, 0.37%
and 1.82%, respectively, for Class B shares of CitiFunds Intermediate
Income Portfolio; 0.75%, 0.89% and 1.89%, respectively, for Class A
shares of CitiFunds Diversified Income Portfolio; and 0.75%, 0.89% and
2.39%, respectively, for Class B shares of CitiFunds Diversified Income
Portfolio.
(3) Includes fees for distribution and shareholder servicing. Long-term
shareholders in the Funds could pay more in sales charges than the
economic equivalent of the maximum front-end sales charges permitted by
the National Association of Securities Dealers, Inc.
<PAGE>
Example: A shareholder would pay the following expenses on a $1,000 investment,
assuming a 5% annual return and redemption at the end of each period indicated
below:
- -------------------------------------------------------------------------------
ONE THREE FIVE TEN
YEAR YEARS YEARS YEARS
- -------------------------------------------------------------------------------
CITIFUNDS INTERMEDIATE
INCOME PoRTFOLIO
Class A $54 $72 $93 $151
Class B
Assuming redemption at end
of period $59 $74 $87 $147
Assuming no redemption $14 $44 $77 $147
- -------------------------------------------------------------------------------
CITIFUNDS DIVERSIFIED INCOME
PORTFOLIO
Class A $56 $78 N/A N/A
Class B
Assuming redemption at
end of period $61 $80 N/A N/A
Assuming no redemption $16 $50 N/A N/A
- -------------------------------------------------------------------------------
The Example assumes that all dividends are reinvested. Without waivers and
reimbursements, the amounts in the Example would be $58, $85, $114 and $197 for
Class A shares of CitiFunds Intermediate Income Portfolio; $63, $87, $109 and
$190 for Class B shares of CitiFunds Intermediate Income Portfolio, assuming
redemption at the end of the period ($18, $57, $99 and $190 assuming no
redemption); $63 and $102 for Class A shares of CitiFunds Diversified Income
Portfolio; and $69 and $105 for Class B shares of CitiFunds Diversified Income
Portfolio, assuming redemption at the end of the period ($24 and $75 assuming
no redemption). For Class B shares, where redemption at the end of the period
is assumed, amounts in the Example assume deduction of the maximum applicable
contingent deferred sales charge, and all ten year amounts in the Example
assume conversion to Class A shares approximately eight years after purchase.
The assumption of a 5% annual return is required by the Securities and Exchange
Commission for all mutual funds, and is not a prediction of any Fund's future
performance. THE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES OF THE FUNDS. ACTUAl EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN.
CLASSES OF SHARES. Beginning on January 4, 1999, each Fund will offer
two classes of shares, Class A and Class B. The main features of the classes
are summarized in this paragraph. More detailed information appears below.
Please determine which class of shares best fits your particular circumstances.
Class A shares have a front-end, or initial, sales charge. This sales charge
may be reduced or eliminated in certain circumstances. Class A shares have
lower annual expenses than Class B shares. Class B shares have no front-end
sales charge, but are subject to a deferred sales charge if you sell within
five years of purchase. Class B shares have higher annual expenses than Class A
shares. Class B shares automatically convert into Class A shares after eight
years. Both classes of shares are sold at net asset value for that class. Net
asset value may differ by class because Class B shares have higher expenses.
<PAGE>
When you place purchase orders and make redemption requests, please
specify whether you wish to purchase or redeem Class A or Class B shares. If
you fail to specify, purchase orders will be deemed to be for Class A shares,
and Class A shares will be redeemed first.
CLASS A SHARES:
o Class A shares are sold at net asset value plus a front-end, or
initial, sales charge. The percentage sales charge goes down as
the amount of your investment in Class A shares goes up. See the
chart below for the percentage sales charge. After the initial
sales charge is deducted from your investment, the balance of
your investment is invested in the Fund.
The sales charge may also be reduced or eliminated in certain
circumstances, as described in "Class A Shares - Sales Charge
Reductions" below. If you qualify to purchase Class A shares
without a sales load, you should purchase Class A shares rather
than Class B shares because Class A shares pay lower fees.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SALES CHARGE SALES CHARGE BROKER/DEALER
AS A % OF AS A % OF COMMISSION AS
AMOUNT OF OFFERING PRICE YOUR A % OF
YOUR INVESTMENT INVESTMENT OFFERING PRICE
<S> <C> <C> <C>
- -------------------------------------------------------------------------------
Less than $25,000 4.50% 4.71% 4.05%
- -------------------------------------------------------------------------------
$25,000 to less than $50,000 4.00% 4.16% 3.60%
- -------------------------------------------------------------------------------
$50,000 to less than $100,000 3.50% 3.59% 3.15%
- -------------------------------------------------------------------------------
$100,000 to less than $250,000 2.50% 2.56% 2.25%
- -------------------------------------------------------------------------------
$250,000 to less than $500,000 1.50% 1.52% 1.35%
- -------------------------------------------------------------------------------
$500,000 or more none* none* up to 1.00%
- -------------------------------------------------------------------------------
</TABLE>
*A contingent deferred sales charge may apply in certain
instances. See below.
o Class A shares pay service fees of up to 0.25% of the average
daily net assets represented by the Class A shares.
o Purchases of $500,000 or more are not subject to an initial sales
charge, but are subject to a 1% contingent deferred sales charge
in the event of certain redemptions within 12 months following
purchase. See below.
o The Distributor will pay commissions to brokers, dealers and other
institutions that sell Class A shares of the Funds as shown in the
table above. The Distributor retains approximately 10% of the
sales charge. Entities that sell Class A shares will also receive
the service fee payable under the Class A Service Plan at an
annual rate equal to 0.25% of the average daily net assets
represented by the Class A shares sold by them.
<PAGE>
CLASS A SHARES - SALES CHARGE REDUCTIONS:
o Reinvestment. The sales charge does not apply to Class A shares
acquired through the reinvestment of dividends and capital gains
distributions.
o Eligible Purchasers. Class A shares may be purchased without a
sales charge by:
[] tax exempt organizations under Section 501(c)(3-13) of the
Internal Revenue Code
[] trust accounts for which Citibank, N.A or any subsidiary or
affiliate of Citibank acts as trustee and exercises
discretionary investment management authority
[] accounts for which Citibank or any subsidiary or affiliate of
Citibank performs investment advisory services or charges fees
for acting as custodian
[] directors or trustees (and their immediate families) of any
investment company for which Citibank or any subsidiary or
affiliate of Citibank serves as the investment adviser or as a
service agent
[] employees of Citibank and its affiliates, CFBDS, Inc. and its
affiliates or any Service Agent and its affiliates (including
immediate families of any of the foregoing)
[] investors participating in a fee-based or promotional
arrangement sponsored or advised by Citibank or its affiliates
[] investors participating in a rewards program that offers Fund
shares as an investment option based on an investor's balances
in selected Citigroup Inc. products and services
[] employees of members of the National Association of Securities
Dealers, Inc., provided that such sales are made upon the
assurance of the purchaser that the purchase is made for
investment purposes and that the securities will not be resold
except through redemption or repurchase
[] separate accounts used to fund certain unregistered variable
annuity contracts
[] direct rollovers by plan participants from a 401(k) plan
offered to Citigroup employees
[] shareholder accounts established through a reorganization or
similar form of business combination approved by a Fund's
Board of Trustees or by the Board of Trustees of any other
CitiFund or mutual fund managed or advised by Citibank (all of
such funds being referred to herein as CitiFunds) the terms of
which entitle those shareholders to purchase shares of a Fund
or any other CitiFund at net asset value without a sales
charge
[] employee benefit plans qualified under Section 401 of the
Internal Revenue Code, including salary reduction plans
qualified under Section 401(k) of the Code, subject to minimum
requirements as may be established by CFBDS with respect to
<PAGE>
the number of employees or amount of purchase; currently,
these criteria require that:
+ the employer establishing the qualified plan have at least
50 eligible employees, or
+ the amount invested by the qualified plan in a Fund or in
any combination of CitiFunds totals a minimum of $500,000
[] investors purchasing $500,000 or more of Class A shares;
however, a contingent deferred sales charge will be imposed on
the investments in the event of certain share redemptions
within 12 months following the share purchase, at the rate of
1% of the lesser of the value of the shares redeemed (not
including reinvested dividends and capital gains
distributions) or the total cost of the shares; the contingent
deferred sales charge on Class A shares will be waived under
the same circumstances as the contingent deferred sales charge
on Class B shares will be waived; in determining whether a
contingent deferred sales charge on Class A shares is payable,
and if so, the amount of the charge:
+ it is assumed that shares not subject to the contingent
deferred sales charge are the first redeemed followed by
other shares held for the longest period of time
+ all investments made during a calendar month will age one
month on the last day of the month and each subsequent
month
+ any applicable contingent deferred sales charge will be
deferred upon an exchange of Class A shares for Class A
shares of another CitiFund and deducted from the
redemption proceeds when the exchanged shares are
subsequently redeemed (assuming the contingent deferred
sales charge is then payable)
+ the holding period of Class A shares so acquired through
an exchange will be aggregated with the period during
which the original Class A shares were held
[] subject to appropriate documentation, investors where the
amount invested represents redemption proceeds from a mutual
fund (other than a CitiFund), if:
+ the redeemed shares were subject to an initial sales
charge or a deferred sales charge (whether or not actually
imposed), and
+ the redemption has occurred no more than 60 days prior to
the purchase of Class A shares of the Fund
[] an investor who has a business relationship with an investment
consultant or other registered representative who joined a
broker-dealer which has a sales agreement with CFBDS from
another investment firm within six months prior to the date of
purchase by the investor, if:
<PAGE>
+ the investor redeems shares of another mutual fund sold
through the investment firm that previously employed that
investment consultant or other registered representative,
and either paid an initial sales charge or was at some
time subject to, but did not actually pay, a deferred
sales charge or redemption fee with respect to the
redemption proceeds,
+ the redemption is made within 60 days prior to the
investment in a Fund, and
+ the net asset value of the shares of the Fund sold to that
investor without a sales charge does not exceed the
proceeds of the redemption
o Reduced Sales Charge Plan. A qualified group may purchase shares
as a single purchaser under the reduced sales charge plan. The
purchases by the group are lumped together and the sales charge is
based on the lump sum. A qualified group must:
[] have been in existence for more than six months
[] have a purpose other than acquiring Fund shares at a discount
[] satisfy uniform criteria that enable CFBDS to realize
economies of scale in its costs of distributing shares
[] have more than ten members
[] be available to arrange for group meetings between
representatives of the Funds and the members
[] agree to include sales and other materials related to the
Funds in its publications and mailings to members at reduced
or no cost to the Distributor
[] seek to arrange for payroll deduction or other bulk
transmission of investments to the Funds
o Right of Accumulation. Eligible investors are permitted to
purchase Class A shares of a Fund at the public offering price
applicable to the total of:
[] the dollar amount then being purchased, plus
[] an amount equal to the then-current net asset value or cost
(whichever is higher) of the purchaser's combined holdings in
certain CitiFunds
See the Statement of Additional Information for the applicable
Fund for more information.
o Letter of Intent. If an investor anticipates purchasing $25,000 or
more of Class A shares of a Fund alone or in combination with
Class B shares of the Fund or any of the classes of certain other
CitiFunds within a 13-month period, by completing a letter of
intent the investor may obtain the shares at the same reduced
sales charge as though the total quantity were invested in one
lump sum, subject to granting a power of attorney to redeem shares
<PAGE>
if the intended purchases are not completed. See the Statement of
Additional Information for the applicable Fund for more
information.
o Reinstatement Privilege. Shareholders who have redeemed Class A
shares may reinstate their Fund account without a sales charge up
to the dollar amount redeemed (with a credit for any contingent
deferred sales charge paid) by purchasing Class A shares of the
same Fund within 90 days after the redemption. To take advantage
of this reinstatement privilege, shareholders must notify the
Transfer Agent or, if they are customers of a Service Agent, their
Service Agent in writing at the time the privilege is exercised.
CLASS B SHARES:
o Class B shares are sold at net asset value without a front-end
sales charge, but they are subject to a contingent deferred sales
charge.
o Class B shares pay a combined distribution and service fee of up
to 0.75% of the average daily net assets represented by the Class
B shares.
o Class B shares have a contingent deferred sales charge (CDSC).
This sales charge goes down the longer you hold your Class B
shares. See the chart below for the amount of the sales charge.
The sales charge is deducted from your redemption proceeds if you
redeem your Class B shares within five years of purchasing them.
- --------------------------------------------------------------------------
REDEMPTION DURING CDSC ON SHARES BEING SOLD
- --------------------------------------------------------------------------
1st year since purchase 4.50%
- --------------------------------------------------------------------------
2nd year since purchase 4.00%
- --------------------------------------------------------------------------
3rd year since purchase 3.00%
- --------------------------------------------------------------------------
4th year since purchase 2.00%
- --------------------------------------------------------------------------
5th year since purchase 1.00%
- --------------------------------------------------------------------------
6th year (or later) since purchase None
- --------------------------------------------------------------------------
o The CDSC is based on the original purchase price or the current
market value of the shares being sold, whichever is less.
o There is no CDSC on Class B shares representing capital
appreciation or on Class B shares acquired through reinvestment of
dividends or capital gains distributions.
o Each Fund will assume that a redemption of Class B shares is made:
[] first, of Class B shares representing capital appreciation
[] next, of shares representing the reinvestment of dividends and
capital gains distributions
[] finally of other shares held by the investor for the longest
period of time
<PAGE>
o The holding period of Class B shares of a Fund acquired through an
exchange with another CitiFund will be calculated from the date
that the Class B shares were initially acquired in the other
CitiFund, and Class B shares being redeemed will be considered to
represent, as applicable, capital appreciation or dividend and
capital gains distribution reinvestments in the other fund. When
determining the amount of the CDSC, each Fund will use the CDSC
schedule of any fund from which you have exchanged shares that
would result in you paying the highest CDSC.
o Class B shares automatically convert to Class A shares of the same
Fund approximately eight years after issuance, together with a pro
rata portion of all Class B shares representing dividends and
other distributions paid in additional Class B shares. Shares are
converted based on the relative net asset values per share of the
two classes on the first business day of the month in which the
eighth anniversary of the issuance of the Class B shares occurs.
Because the net asset value of a Class A share may be higher than
that of a Class B share, you may receive fewer Class A shares than
the number of Class B shares converted, but the dollar value will
be the same.
o Commissions will be paid to brokers, dealers and other
institutions that sell Class B shares in the amount of 4.00% of
the purchase price of Class B shares sold by these entities. These
commissions are not paid on exchanges from other CitiFunds or on
sales of Class B shares to investors exempt from the CDSC.
Entities that sell Class B shares will also receive a portion of
the service fee payable under the Class B Service Plan at an
annual rate equal to 0.25% of the average daily net assets
represented by the Class B shares sold by them.
CLASS B SHARES - CDSC ELIMINATION:
o Reinvestment. There is no CDSC on shares representing capital
appreciation or on shares acquired through reinvestment of
dividends or capital gains distributions.
o Waivers. The CDSC will be waived in connection with:
[] exchanges into certain CitiFunds
[] a total or partial redemption made within one year of the
death of the shareholder; this waiver is available where the
deceased shareholder is either the sole shareholder or owns
the shares with his or her spouse as a joint tenant with right
of survivorship, and applies only to redemption of shares held
at the time of death
[] a lump sum or other distribution in the case of an Individual
Retirement Account (IRA), a self-employed individual
retirement plan (Keogh Plan) or a custodian account under
Section 403(b) of the Internal Revenue Code, in each case
following attainment of age 59 1/2
<PAGE>
[] a total or partial redemption resulting from any distribution
following retirement in the case of a tax-qualified retirement
plan
[] a redemption resulting from a tax-free return of an excess
contribution to an IRA
EXCHANGES
o Shares of each Fund may be exchanged for shares of the same class
of certain other CitiFunds, or may be acquired through an exchange
of shares of the same class of those funds. Class A shares also
may be exchanged for shares of certain CitiFunds money market
funds that offer only a single class of shares, unless the Class A
shares are subject to a contingent deferred sales charge. Class B
shares may not be exchanged for shares of CitiFunds money market
funds that offer only a single class of shares. No initial sales
charge is imposed on shares being acquired through an exchange
unless Class A shares are being acquired and the sales charge for
Class A shares of the fund being exchanged into is greater than
the current sales charge of the Fund (in which case an initial
sales charge will be imposed at a rate equal to the difference).
Investors whose shares are outstanding on January 4, 1999 will be
able to exchange those Class A shares, and any shares acquired
through capital appreciation and the reinvestment of dividends and
capital gains distributions on those shares, into Class A shares
of the other funds without paying any sales charge. No contingent
deferred sales charge is imposed on Class B shares when they are
exchanged for Class B shares of certain other CitiFunds. This
exchange privilege may be changed or terminated at any time with
at least 60 days' notice, when notice is required by applicable
rules and regulations.
SERVICE PLANS. The Funds maintain separate Service Plans, which have
been adopted in accordance with Rule 12b-1 under the 1940 Act, for Class A and
Class B shares. Under the Class A Service Plans, each Fund may pay monthly fees
at an annual rate not to exceed 0.25% of the average daily net assets
represented by Class A shares of the Fund. Under the Class B Service Plans,
each Fund may pay monthly a combined distribution and service fee of up to
0.75% of the average daily net assets represented by the Class B shares. These
fees may be used to make payments to the Distributor for distribution services
and to Service Agents and others as compensation for the sale of shares of the
applicable class of each Fund, for advertising, marketing or other promotional
activity, and for preparation, printing and distribution of prospectuses,
statements of additional information and reports for recipients other than
regulators and existing shareholders. Each Fund also may make payments to the
Distributor, Service Agents and others for providing personal service or the
maintenance of shareholder accounts.
The amounts paid to each Service Agent and other recipient may vary
based upon certain factors, including, among other things, the levels of sales
of Fund shares and/or shareholder services provided by the Service Agent.
<PAGE>
Service Agents and others may receive different compensation for sales of Class
A and Class B shares.
The Distributor provides to the Trustees quarterly a written report of
amounts expended pursuant to the Service Plans and the purposes for which the
expenditures were made.
During the period they are in effect, the Service Plans and related
Distribution Agreements obligate each Fund to pay fees to the Distributor,
Service Agents and others as compensation for their services, not as
reimbursement for specific expenses incurred. Thus, even if these entities'
expenses exceed the fees provided for under the Service Plans, the Funds will
not be obligated to pay more than those fees and, if their expenses are less
than the fees paid to them, they will realize a profit. The Funds will pay the
fees to the Distributor, Service Agents and others until the Service Plans or
Distribution Agreements are terminated or not renewed. In that event, the
Distributor's or Service Agent's expenses in excess of fees received or accrued
through the termination date will be the Distributor's or Service Agent's sole
responsibility and not obligations of any Fund.
<PAGE>
CONDENSED FINANCIAL INFORMATION. The information in the following table
supplements the financial information contained in "Condensed Financial
Information" in the prospectus for CitiFunds Intermediate Income Portfolio. The
numbers in the table below are unaudited.
For more current performance information, call 1-800-625-4554.
- -------------------------------------------------------------------------
CITIFUNDS INTERMEDIATE
INCOME PORTFOLIO -
SIX MONTHS ENDED JUNE
30, 1998
(UNAUDITED)
- -------------------------------------------------------------------------
Net Asset Value, beginning of period $9.72
- -------------------------------------------------------------------------
Income from Operations:
Net investment income 0.271
Net realized and unrealized gain (loss) on
investments 0.116
- -------------------------------------------------------------------------
Total from operations 0.387
- -------------------------------------------------------------------------
Less Dividends From:
Net investment income (0.267)
Net realized gain on investments --
- -------------------------------------------------------------------------
Total from distributions (0.267)
- -------------------------------------------------------------------------
Net Asset Value, end of period $9.84
- -------------------------------------------------------------------------
- -------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
- -------------------------------------------------------------------------
Net assets, end of period (000's omitted) $45,988
- -------------------------------------------------------------------------
Ratio of expenses to average net assets 0.91%*
- -------------------------------------------------------------------------
Ratio of expenses to average net assets after
fees paid indirectly 0.90%*
- -------------------------------------------------------------------------
Ratio of net investment income (loss) to
average net assets 5.50%*
- -------------------------------------------------------------------------
Portfolio turnover 78%
- -------------------------------------------------------------------------
Total Return 4.03%**
- -------------------------------------------------------------------------
Note: If certain agents of the Fund had not voluntarily agreed to waive
all or a portion of their fees for the periods indicated and expenses
were not reduced for fees paid indirectly, the net investment income
per share and the ratios would have been as follows:
- -------------------------------------------------------------------------
Net investment income per share $0.250
- -------------------------------------------------------------------------
RATIOS:
- -------------------------------------------------------------------------
Expenses to average net assets 1.32%*
- -------------------------------------------------------------------------
Net investment income to average net assets 5.08%*
- -------------------------------------------------------------------------
- ------------------------
* Annualized
** Not annualized
<PAGE>
SUPPLEMENT DATED JANUARY 4, 1999
TO
STATEMENT OF ADDITIONAL DATED MARCH 2, 1998 FOR
CITIFUNDSSM INTERMEDIATE INCOME PORTFOLIO
AND
STATEMENT OF ADDITIONAL INFORMATION DATED SEPTEMBER 21, 1998 FOR
CITIFUNDSSM DIVERSIFIED INCOME PORTFOLIO
SALES CHARGES. Shares of each Fund are sold at net asset value, plus,
in the case of Class A shares, a front-end, or initial, sales charge that may
be reduced on purchases involving substantial amounts and that may be
eliminated in certain circumstances. A contingent deferred sales charge is
imposed on redemptions of certain Class B shares made within five years of
purchase.
PERFORMANCE. Total rates of return for each of the Funds may be
calculated on investments at various sales charge levels or at net asset value.
Any performance data which is based on a reduced sales charge or net asset
value would be reduced if the maximum sales charge were taken into account.
DETERMINATION OF NET ASSET VALUE. Net asset value is calculated
separately for each class. Per share net asset value of the classes of each
Fund's shares can be expected to differ because the Class B shares bear higher
expenses than Class A shares.
LETTER OF INTENT. If an investor anticipates purchasing $25,000 or more
of Class A shares of a Fund alone or in combination with Class B shares of the
Fund or any of the classes of other CitiFunds or mutual funds managed or
advised by Citibank (all of such funds being referred to herein as CitiFunds)
within a 13-month period, the investor may obtain the shares at the same
reduced sales charge as though the total quantity were invested in one lump sum
by completing a letter of intent on the terms described below. Subject to
acceptance by CFBDS, Inc., the Funds' distributor, and the conditions mentioned
below, each purchase will be made at a public offering price applicable to a
single transaction of the dollar amount specified in the letter of intent.
o The shareholder or, if the shareholder is a customer of a Service
Agent, his or her Service Agent must inform CFBDS that the letter
of intent is in effect each time shares are purchased.
o The shareholder makes no commitment to purchase additional shares,
but if his or her purchases within 13 months plus the value of
shares credited toward completion of the letter of intent do not
total the sum specified, an increased sales charge will apply as
described below.
<PAGE>
o A purchase not originally made pursuant to a letter of intent may
be included under a subsequent letter of intent executed within 90
days of the purchase if CFBDS is informed in writing of this
intent within the 90-day period.
o The value of shares of a Fund presently held, at cost or maximum
offering price (whichever is higher), on the date of the first
purchase under the letter of intent, may be included as a credit
toward the completion of the letter, but the reduced sales charge
applicable to the amount covered by the letter is applied only to
new purchases.
o Instructions for issuance of shares in the name of a person other
than the person signing the letter of intent must be accompanied
by a written statement from the Transfer Agent or a Service Agent
stating that the shares were paid for by the person signing the
letter.
o Neither income dividends nor capital gains distributions taken in
additional shares will apply toward the completion of the letter
of intent.
o The value of any shares redeemed or otherwise disposed of by the
purchaser prior to termination or completion of the letter of
intent are deducted from the total purchases made under the letter
of intent.
If the investment specified in the letter of intent is not completed
(either prior to or by the end of the 13-month period), the Transfer Agent will
redeem, within 20 days of the expiration of the letter of intent, an
appropriate number of the shares in order to realize the difference between the
reduced sales charge that would apply if the investment under the letter of
intent had been completed and the sales charge that would normally apply to the
number of shares actually purchased. By completing and signing the letter of
intent, the shareholder irrevocably grants a power of attorney to the Transfer
Agent to redeem any or all shares purchased under the letter of intent, with
full power of substitution.
RIGHT OF ACCUMULATION. A shareholder qualifies for cumulative quantity
discounts on the purchase of Class A shares when his or her new investment,
together with the current offering price value of all holdings of that
shareholder in the CitiFunds, reaches a discount level. For example, if a Fund
shareholder owns shares valued at $50,000 and purchases an additional $50,000
of Class A shares of the Fund, the sales charge for the additional $50,000
purchase would be at the rate of 2.50% (the rate applicable to single
transactions from $100,000 to less than $250,000). A shareholder must provide
the Transfer Agent with information to verify that the quantity sales charge
discount is applicable at the time the investment is made.
CONVERSION OF CLASS B SHARES. A shareholder's Class B shares will
automatically convert to Class A shares in the same Fund approximately eight
years after the date of issuance, together with a pro rata portion of all Class
<PAGE>
B shares representing dividends and other distributions paid in additional
Class B shares. The conversion will be effected at the relative net asset
values per share of the two classes on the first business day of the month in
which the eighth anniversary of the issuance of the Class B shares occurs. If a
shareholder effects one or more exchanges among Class B shares of the CitiFunds
during the eight-year period, the holding periods for the shares so exchanged
will be counted toward the eight-year period. Because the per share net asset
value of the Class A shares may be higher than that of the Class B shares at
the time of conversion, a shareholder may receive fewer Class A shares than the
number of Class B shares converted, although the dollar value will be the same.
SERVICE FEES. The Funds pay fees for distribution and shareholder
servicing pursuant to a Service Plan adopted with respect to each class of
shares of the Funds in accordance with Rule 12b-1 under the Investment Company
Act of 1940, as amended. The Service Plan with respect to Class A shares
provides that each Fund may pay monthly fees at an annual rate not to exceed
0.25% of the average daily net assets represented by Class A shares of the
Fund. The Service Plan with respect to Class B shares provides that each Fund
may pay monthly a combined distribution and service fee of up to 0.75% of the
average daily net assets represented by the Class B shares.
FINANCIAL STATEMENTS. The financial statements (unaudited) for
CitiFunds Intermediate Income Portfolio (Portfolio of Investments at June 30,
1998, Statement of Assets and Liabilities at June 30, 1998, Statement of
Operations for the six months ended June 30, 1998, Statement of Changes in Net
Assets for the six months ended June 30, 1998 and the year ended December 31,
1997, and Financial Highlights for the six months ended June 30, 1998, the
years ended December 31, 1997, 1996, 1995 and 1994 and for the period June 25,
1993 (commencement of operations) to December 31, 1993) which are included in
the Semi-Annual Report to Shareholders of CitiFunds Intermediate Income
Portfolio, are incorporated herein by reference.
<PAGE>
PART C
<TABLE>
<CAPTION>
Item 24. Financial Statements and Exhibits.
<S> <C> <C>
(a) Financial Statements Included in Part A:
Condensed Financial Information - Financial Highlights (unaudited) of CitiFunds Intermediate
Income Portfolio and CitiFunds Short-Term U.S. Government Income Portfolio (for the six
months ended June 30, 1998).
Financial Statements Included in Part B:
CITIFUNDS INTERMEDIATE INCOME PORTFOLIO
Portfolio of Investments at June 30, 1998*
Statement of Assets and Liabilities at June 30, 1998*
Statement of Operations for the six months ended June 30, 1998*
Statement of Changes in Net Assets for the six months ended June 30, 1998 and the year ended
December 31, 1997*
Financial Highlights for the six months ended June 30, 1998, the four-year period ended
December 31, 1997 and for the period from June 25, 1993 (commencement of operations) to
December 31, 1993*
CITIFUNDS SHORT-TERM U.S. GOVERNMENT INCOME PORTFOLIO
Statement of Assets and Liabilities at June 30, 1998*
Statement of Operations for the six months ended June 30, 1998*
Statement of Changes in Net Assets for the six months ended June 30, 1998 and the year ended
December 31, 1997*
Financial Highlights for the six months ended June 30, 1998, the four-year period ended
December 31, 1997, the four months ended December 31, 1993 and the year ended August
31, 1993*
GOVERNMENT INCOME PORTFOLIO
Portfolio of Investments at June 30, 1998*
Statement of Assets and Liabilities at June 30, 1998*
Statement of Operations for the six months ended June 30, 1998*
Statement of Changes in Net Assets for the six months ended June 30, 1998 and the year ended
December 31, 1997*
Financial Highlights for the six months ended June 30, 1998, the three-year period ended
December 31, 1997, and the period May 1, 1994 (commencement of operations) to
December 31, 1994*
------------------
* Incorporated by reference to the Registrant's Semi-Annual Reports to Shareholders of
CitiFunds Intermediate Income Portfolio and CitiFunds Short-Term U.S. Government Income
Portfolio, as filed with the Commission on August 20, 1998 (accession number 0000950156-
98-000512).
(b) Exhibits
*** 1(a) Declaration of Trust of Registrant
*** 1(b) Amendments to Registrant's Declaration of Trust
**** 1(c) Form of Establishment and Designation of Series of the Registrant
*** 2(a) Amended and Restated By-Laws of Registrant
*** 2(b) Amendments to Amended and Restated By-Laws of Registrant
<PAGE>
5(a) Management Agreement between the Registrant and Citibank, N.A., as manager
to CitiFunds Intermediate Income Portfolio
**** 5(b) Form of Management Agreement between the Registrant and Citibank, N.A., as
manager to CitiFunds Diversified Income Portfolio
6(a) Form of Amended and Restated Distribution Agreement between the Registrant
and CFBDS, Inc. ("CFBDS"), as distributor with respect to Class A shares of
CitiFunds Short-Term U.S. Government Income Portfolio
6(b) Form of Amended and Restated Distribution Agreement between the Registrant
and CFBDS, as distributor with respect to Class A shares of CitiFunds
Intermediate Income Portfolio and CitiFunds Diversified Income Portfolio
6(c) Form of Distribution Agreement between the Registrant and CFBDS, as
distributor with respect to Class B shares of CitiFunds Intermediate Income
Portfolio and CitiFunds Diversified Income Portfolio
*** 8(a) Custodian Contract between the Registrant and State Street Bank and Trust
Company ("State Street"), as custodian
**** 8(b) Form of letter agreement adding CitiFunds Diversified Income Portfolio to the
Custodian Contract with State Street
*** 9(a) Amended and Restated Administrative Services Plan of the Registrant with
respect to CitiFunds Short-Term U.S. Government Income Portfolio
*** 9(b) Administrative Services Agreement between the Registrant and CFBDS, as
administrator with respect to CitiFunds Short-Term U.S. Government Income
Portfolio
*** 9(c) Sub-Administrative Services Agreement between Citibank, N.A. and CFBDS
with respect to CitiFunds Short-Term U.S. Government Income Portfolio
* 9(d)(i) Form of Shareholder Servicing Agreement between the Registrant and Citibank,
N.A., as shareholder servicing agent for CitiFunds Short-Term U.S. Government
Income Portfolio
* 9(d)(ii) Form of Shareholder Servicing Agreement between the Registrant and a federal
savings bank, as shareholder servicing agent for CitiFunds Short-Term U.S.
Government Income Portfolio
* 9(d)(iii) Form of Shareholder Agreement between the Registrant and CFBDS, as
shareholder servicing agent for CitiFunds Short-Term U.S. Government Income
Portfolio
** 9(d)(iv) Form of Shareholder Servicing Agreement between the Registrant and a
national banking association or subsidiary thereof or state chartered banking
association, as shareholder servicing agent for CitiFunds Short-Term U.S.
Government Income Portfolio
**** 9(e) Form of Amended and Restated Sub-Administrative Services Agreement
between Citibank, N.A. and CFBDS
*** 9(f) Transfer Agency and Service Agreement between the Registrant and State Street,
as transfer agent
**** 9(g) Form of letter agreement adding CitiFunds Diversified Income Portfolio to the
Transfer Agency and Service Agreement with State Street
*** 9(h) Accounting Services Agreement between the Registrant and State Street, as
Fund accounting agent
10 Opinion and consent of counsel
11 Independent Accountants' consent
15(a) Form of Amended and Restated Distribution Plan of the Registrant for Class A
Shares of CitiFunds Short-Term U.S. Government Income Portfolio
15(b) Form of Amended and Restated Service Plan of the Registrant for Class A
Shares of CitiFunds Intermediate Income Portfolio and CitiFunds Diversified
Income Portfolio
15(c) Form of Service Plan of the Registrant for Class B Shares of CitiFunds
Intermediate Income Portfolio and CitiFunds Diversified Income Portfolio
<PAGE>
18 Form of Multiple Class Plan of the Registrant
*** 25(a) Powers of Attorney for the Registrant
25(b) Powers of Attorney for The Premium Portfolios
</TABLE>
- ---------------------
* Incorporated herein by reference to Post-Effective Amendment
No. 18 to the Registrant's Registration Statement on Form N-1A
(File No. 33-6540) as filed with the Securities and Exchange
Commission on April 18, 1994.
** Incorporated herein by reference to Post-Effective Amendment
No. 22 to the Registrant's Registration Statement on Form N-1A
(File No. 33-6540) as filed with the Securities and Exchange
Commission on April 29, 1996.
*** Incorporated herein by reference to Post-Effective Amendment
No. 24 to the Registrant's Registration Statement on Form N-1A
(File No. 33-6540) as filed with the Securities and Exchange
Commission on February 20, 1998.
**** Incorporated herein by reference to Post-Effective Amendment
No. 25 to the Registrant's Registration Statement on Form N-1A
(File No. 33-6540) as filed with the Securities and Exchange
Commission on June 29, 1998.
Item 25. Persons Controlled by or under Common Control with Registrant.
Not applicable.
Item 26. Number of Holders of Securities.
Title of Class Number of Record Holders
Shares of Beneficial Interest
(without par value) As of November 20, 1998
CitiFunds Intermediate Income Portfolio 7
CitiFunds Short-Term U.S. Government
Income Portfolio 7
CitiFunds Diversified Income Portfolio 0
Item 27. Indemnification.
Reference is hereby made to (a) Article V of the Registrant's Declaration
of Trust, filed as an Exhibit to Post-Effective Amendment No. 24 to its
Registration Statement on Form N-1A; (b) Section 6 of the Distribution
Agreements between the Registrant and CFBDS, filed as Exhibits hereto; and (c)
the undertaking of the Registrant regarding indemnification set forth in its
Registration Statement on Form N-1A.
The Trustees and officers of the Registrant and the personnel of the
Registrant's administrator are insured under an errors and omissions liability
insurance policy. The Registrant and its officers are also insured under the
fidelity bond required by Rule 17g-1 under the Investment Company Act of 1940.
<PAGE>
Item 28. Business and Other Connections of Investment Adviser.
Citibank, N.A. ("Citibank") is a commercial bank offering a wide range of
banking and investment services to customers across the United States and
around the world. Citibank is a wholly-owned subsidiary of Citicorp, which is,
in turn, a wholly-owned subsidiary of Citigroup Inc. Citibank also serves as
investment adviser to the following registered investment companies (or series
thereof): Asset Allocation Portfolios (Large Cap Value Portfolio, Small Cap
Value Portfolio, International Portfolio, Foreign Bond Portfolio, Intermediate
Income Portfolio and Short-Term Portfolio), The Premium Portfolios (U.S. Fixed
Income Portfolio, Growth & Income Portfolio, Balanced Portfolio, Large Cap
Growth Portfolio, International Equity Portfolio, Government Income Portfolio
and Small Cap Growth Portfolio), Tax Free Reserves Portfolio, U.S. Treasury
Reserves Portfolio, Cash Reserves Portfolio, CitiFundsSM Tax Free Income Trust
(CitiFundsSM New York Tax Free Income Portfolio, CitiFundsSM National Tax Free
Income Portfolio and CitiFundsSM California Tax Free Income Portfolio),
CitiFundsSM Multi-State Tax Free Trust (CitiFundsSM California Tax Free
Reserves, CitiFundsSM New York Tax Free Reserves and CitiFundsSM Connecticut
Tax Free Reserves), CitiFundsSM Institutional Trust (CitiFundsSM Institutional
Cash Reserves) and Variable Annuity Portfolios (CitiSelect VIP Folio 200,
CitiSelect VIP Folio 300, CitiSelect VIP Folio 400, CitiSelect VIP Folio 500
and CitiFundsSM Small Cap Growth VIP Portfolio). Citibank and its affiliates
manage assets in excess of $290 billion worldwide. The principal place of
business of Citibank is located at 399 Park Avenue, New York, New York 10043.
John S. Reed is the Chairman and a Director of Citibank. Victor J. Menezes
is the President and a Director of Citibank. William R. Rhodes and H. Onno
Ruding are Vice Chairmen and Directors of Citibank. The other Directors of
Citibank are Paul J. Collins, Vice Chairman of Citigroup Inc. and Robert I.
Lipp, Chairman and Chief Executive Officer of The Travelers Insurance Group
Inc. and of Travelers Property Casualty Corp.
Each of the individuals named above is also a Director of Citigroup Inc.
In addition, the following persons have the affiliations indicated:
<TABLE>
<CAPTION>
<S> <C>
Paul J. Collins Director, Kimberly-Clark Corporation
Robert I. Lipp Chairman, Chief Executive Officer and President, Travelers
Property Casualty Co.
John S. Reed Director, Monsanto Company
Director, Philip Morris Companies
Incorporated
Stockholder, Tampa Tank & Welding, Inc.
William R. Rhodes Director, Private Export Funding
Corporation
H. Onno Ruding Supervisory Director, Amsterdamsch Trustees Cantoor B.V.
Director, Pechiney S.A.
Advisory Director, Unilever NV and Unilever PLC
Director, Corning Incorporated
</TABLE>
For information as to the business, profession, vocation or employment of
a substantial nature of each of the officers and directors of Salomon Brothers
Asset Management Inc ("SBAM"), a subadviser to CitiFunds Diversified Income
Portfolio, reference is made to SBAM's current Form ADV filed under the
Investment Advisers Act of 1940, incorporated herein by reference.
<PAGE>
Item 29. Principal Underwriters.
(a) CFBDS, the Registrant's Distributor, is also the distributor for
CitiFundsSM International Growth & Income Portfolio, CitiFundsSM International
Growth Portfolio, CitiFundsSM U.S. Treasury Reserves, CitiFundsSM Cash
Reserves, CitiFundsSM Premium U.S. Treasury Reserves, CitiFundsSM Premium
Liquid Reserves, CitiFundsSM Institutional U.S. Treasury Reserves, CitiFundsSM
Institutional Liquid Reserves, CitiFundsSM Institutional Cash Reserves,
CitiFundsSM Tax Free Reserves, CitiFundsSM Institutional Tax Free Reserves,
CitiFundsSM California Tax Free Reserves, CitiFundsSM Connecticut Tax Free
Reserves, CitiFundsSM New York Tax Free Reserves, CitiFundsSM New York Tax Free
Income Portfolio, CitiFundsSM National Tax Free Income Portfolio, CitiFundsSM
California Tax Free Income Portfolio, CitiFundsSM Balanced Portfolio,
CitiFundsSM Small Cap Value Portfolio, CitiFundsSM Growth & Income Portfolio,
CitiFundsSM Large Cap Growth Portfolio, CitiFundsSM Small Cap Growth Portfolio,
CitiSelect VIP Folio 200, CitiSelect VIP Folio 300, CitiSelect VIP Folio 400,
CitiSelect VIP Folio 500, CitiFundsSM Small Cap Growth VIP Portfolio,
CitiSelect Folio 200, CitiSelect Folio 300, CitiSelect Folio 400, and
CitiSelect Folio 500. CFBDS is also the placement agent for Large Cap Value
Portfolio, Small Cap Value Portfolio, International Portfolio, Foreign Bond
Portfolio, Intermediate Income Portfolio, Short-Term Portfolio, Growth & Income
Portfolio, U.S. Fixed Income Portfolio, Large Cap Growth Portfolio, Small Cap
Growth Portfolio, International Equity Portfolio, Balanced Portfolio,
Government Income Portfolio, Tax Free Reserves Portfolio, Cash Reserves
Portfolio and U.S. Treasury Reserves Portfolio. CFBDS also serves as the
distributor for the following funds: The Travelers Fund U for Variable
Annuities, The Travelers Fund VA for Variable Annuities, The Travelers Fund BD
for Variable Annuities, The Travelers Fund BD II for Variable Annuities, The
Travelers Fund BD III for Variable Annuities, The Travelers Fund BD IV for
Variable Annuities, The Travelers Fund ABD for Variable Annuities, The
Travelers Fund ABD II for Variable Annuities, The Travelers Separate Account PF
for Variable Annuities, The Travelers Separate Account PF II for Variable
Annuities, The Travelers Separate Account QP for Variable Annuities, The
Travelers Separate Account TM for Variable Annuities, The Travelers Separate
Account TM II for Variable Annuities, The Travelers Separate Account Five for
Variable Annuities, The Travelers Separate Account Six for Variable Annuities,
The Travelers Separate Account Seven for Variable Annuities, The Travelers
Separate Account Eight for Variable Annuities, The Travelers Fund UL for
Variable Annuities, The Travelers Fund UL II for Variable Annuities, The
Travelers Variable Life Insurance Separate Account One, The Travelers Variable
Life Insurance Separate Account Two, The Travelers Variable Life Insurance
Separate Account Three, The Travelers Variable Life Insurance Separate Account
Four, The Travelers Separate Account MGA, The Travelers Separate Account MGA
II, The Travelers Growth and Income Stock Account for Variable Annuities, The
Travelers Quality Bond Account for Variable Annuities, The Travelers Money
Market Account for Variable Annuities, The Travelers Timed Growth and Income
Stock Account for Variable Annuities, The Travelers Timed Short-Term Bond
Account for Variable Annuities, The Travelers Timed Aggressive Stock Account
for Variable Annuities, The Travelers Timed Bond Account for Variable
Annuities, Emerging Growth Fund, Government Fund, Growth and Income Fund,
International Equity Fund, Municipal Fund, Balanced Investments, Emerging
Markets Equity Investments, Government Money Investments, High Yield
Investments, Intermediate Fixed Income Investments, International Equity
Investments, International Fixed Income Investments, Large Capitalization
Growth Investments, Large Capitalization Value Equity Investments, Long-Term
Bond Investments, Mortgage Backed Investments, Municipal Bond Investments,
Small Capitalization Growth Investments, Small Capitalization Value Equity
Investments, Appreciation Portfolio, Diversified Strategic Income Portfolio,
Emerging Growth Portfolio, Equity Income Portfolio, Equity Index Portfolio,
Growth & Income Portfolio, Intermediate High Grade Portfolio, International
Equity Portfolio, Money Market Portfolio, Total Return Portfolio, Smith Barney
<PAGE>
Adjustable Rate Government Income Fund, Smith Barney Aggressive Growth Fund
Inc., Smith Barney Appreciation Fund, Smith Barney Arizona Municipals Fund
Inc., Smith Barney California Municipals Fund Inc., Balanced Portfolio,
Conservative Portfolio, Growth Portfolio, High Growth Portfolio, Income
Portfolio, Global Portfolio, Select Balanced Portfolio, Select Conservative
Portfolio, Select Growth Portfolio, Select High Growth Portfolio, Select Income
Portfolio, Concert Social Awareness Fund, Smith Barney Large Cap Blend Fund,
Smith Barney Fundamental Value Fund Inc., Large Cap Value Fund, Short-Term High
Grade Bond Fund, U.S. Government Securities Fund, Smith Barney Balanced Fund,
Smith Barney Convertible Fund, Smith Barney Diversified Strategic Income Fund,
Smith Barney Exchange Reserve Fund, Smith Barney High Income Fund, Smith Barney
Municipal High Income Fund, Smith Barney Premium Total Return Fund, Smith
Barney Total Return Bond Fund, Cash Portfolio, Government Portfolio, Municipal
Portfolio, Concert Peachtree Growth Fund, Smith Barney Contrarian Fund, Smith
Barney Government Securities Fund, Smith Barney Hansberger Global Small Cap
Value Fund, Smith Barney Hansberger Global Value Fund, Smith Barney Investment
Grade Bond Fund, Smith Barney Special Equities Fund, Smith Barney Intermediate
Maturity California Municipals Fund, Smith Barney Intermediate Maturity New
York Municipals Fund, Smith Barney Large Capitalization Growth Fund, Smith
Barney S&P 500 Index Fund, Smith Barney Mid Cap Blend Fund, Smith Barney
Managed Governments Fund Inc., Smith Barney Managed Municipals Fund Inc., Smith
Barney Massachusetts Municipals Fund, Cash Portfolio, Government Portfolio,
Retirement Portfolio, California Money Market Portfolio, Florida Portfolio,
Georgia Portfolio, Limited Term Portfolio, New York Money Market Portfolio, New
York Portfolio, Pennsylvania Portfolio, Smith Barney Municipal Money Market
Fund, Inc., Smith Barney Natural Resources Fund Inc., Smith Barney New Jersey
Municipals Fund Inc., Smith Barney Oregon Municipals Fund, Zeros Plus Emerging
Growth Series 2000, Smith Barney Security and Growth Fund, Smith Barney Small
Cap Blend Fund, Inc., Smith Barney Telecommunications Income Fund, Income and
Growth Portfolio, Reserve Account Portfolio, U.S. Government/High Quality
Securities Portfolio, Emerging Markets Portfolio, European Portfolio, Global
Government Bond Portfolio, International Balanced Portfolio, International
Equity Portfolio, Pacific Portfolio, AIM Capital Appreciation Portfolio,
Alliance Growth Portfolio, GT Global Strategic Income Portfolio, MFS Total
Return Portfolio, Putnam Diversified Income Portfolio, Smith Barney High Income
Portfolio, Smith Barney Large Cap Value Portfolio, Smith Barney International
Equity Portfolio, Smith Barney Large Capitalization Growth Portfolio, Smith
Barney Money Market Portfolio, Smith Barney Pacific Basin Portfolio, TBC
Managed Income Portfolio, Van Kampen American Capital Enterprise Portfolio,
Centurion Tax-Managed U.S. Equity Fund, Centurion Tax-Managed International
Equity Fund, Centurion U.S. Protection Fund, Centurion International Protection
Fund, Global High-Yield Bond Fund, International Equity Fund, Emerging
Opportunities Fund, Core Equity Fund, Long-Term Bond Fund, Global Dimensions
Fund L.P., Citicorp Private Equity L.P., AIM V.I. Capital Appreciation Fund,
AIM V.I. Government Series Fund, AIM V.I. Growth Fund, AIM V.I. International
Equity Fund, AIM V.I. Value Fund, Fidelity VIP Growth Portfolio, Fidelity VIP
High Income Portfolio, Fidelity VIP Equity Income Portfolio, Fidelity VIP
Overseas Portfolio, Fidelity VIP II Contrafund Portfolio, Fidelity VIP II Index
500 Portfolio, MFS World Government Series, MFS Money Market Series, MFS Bond
Series, MFS Total Return Series, MFS Research Series, MFS Emerging Growth
Series, Salomon Brothers Institutional Money Market Fund, Salomon Brothers Cash
Management Fund, Salomon Brothers New York Municipal Money Market Fund, Salomon
Brothers National Intermediate Municipal Fund, Salomon Brothers U.S. Government
Income Fund, Salomon Brothers High Yield Bond Fund, Salomon Brothers Strategic
Bond Fund, Salomon Brothers Total Return Fund, Salomon Brothers Asia Growth
Fund, Salomon Brothers Capital Fund Inc, Salomon Brothers Investors Fund Inc,
Salomon Brothers Opportunity Fund Inc, Salomon Brothers Institutional High
Yield Bond Fund, Salomon Brothers Institutional Emerging Markets Debt Fund,
Salomon Brothers Variable Investors Fund, Salomon Brothers Variable Capital
Fund, Salomon Brothers Variable Total Return Fund, Salomon Brothers Variable
High Yield Bond Fund, Salomon Brothers Variable Strategic Bond Fund, Salomon
Brothers Variable U.S. Government Income Fund, and Salomon Brothers Variable
Asia Growth Fund.
(b) The information required by this Item 29 with respect to each director
and officer of CFBDS is incorporated by reference to Schedule A of Form BD
filed by CFBDS pursuant to the Securities and Exchange Act of 1934 (File No.
8-32417).
(c) Not applicable.
Item 30. Location of Accounts and Records.
The accounts and records of the Registrant are located, in whole or in
part, at the office of the Registrant and the following locations:
<PAGE>
NAME ADDRESS
CFBDS, Inc. 21 Milk Street, 5th Floor
(administrator and distributor) Boston, MA 02109
State Street Bank and Trust Company 1776 Heritage Drive
(transfer agent, and fund accounting agent) North Quincy, MA 02171
Citibank, N.A. 153 East 53rd Street
(investment adviser) New York, NY 10043
Item 31. Management Services.
Not applicable.
Item 32. Undertakings.
(a) Not applicable.
(b) Not applicable.
(c) The Registrant hereby undertakes, if requested to do so by the record
holders of not less than 10% of the Registrant's outstanding shares,
to call a meeting of shareholders for the purpose of voting upon the
question of removal of a trustee or trustees, and to assist in
communications with other shareholders as required by Section 16(c)
of the Investment Company Act of 1940. The Registrant further
undertakes to furnish to each person to whom a prospectus of
CitiFunds Intermediate Income Portfolio, CitiFunds Short-Term U.S.
Government Income Portfolio or CitiFunds Diversified Income Portfolio
is delivered with a copy of the respective Fund's latest Annual
Report to Shareholders, upon request without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all
requirements for effectiveness of this Post-Effective Amendment to the
Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933
and has duly caused this Post-Effective Amendment to be signed on its behalf by
the undersigned, thereunto duly authorized, in the City of Boston and
Commonwealth of Massachusetts on the 14th day of December, 1998.
CITIFUNDS FIXED INCOME TRUST
By: Philip W. Coolidge
------------------------------
Philip W. Coolidge
President
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment to the Registration Statement has been signed below by
the following persons in the capacities indicated below on December 14, 1998.
<TABLE>
<CAPTION>
Signature Title
<S> <C>
Philip W. Coolidge President, Principal Executive Officer and Trustee
--------------------------
Philip W. Coolidge
John R. Elder Principal Financial Officer and Principal
-------------------------- Accounting Officer
John R. Elder
Riley C. Gilley* Trustee
--------------------------
Riley C. Gilley
Diana R. Harrington* Trustee
--------------------------
Diana R. Harrington
Susan B. Kerley* Trustee
--------------------------
Susan B. Kerley
C. Oscar Morong, Jr.* Trustee
--------------------------
C. Oscar Morong, Jr.
E. Kirby Warren* Trustee
--------------------------
E. Kirby Warren
William S. Woods, Jr.* Trustee
--------------------------
William S. Woods, Jr.
*By: Philip W. Coolidge
--------------------
Philip W. Coolidge
Executed by Philip W. Coolidge on behalf of
those indicated pursuant to Powers of
Attorney.
</TABLE>
<PAGE>
SIGNATURES
The Premium Portfolios has duly caused this Post-Effective Amendment to
the Registration Statement on Form N-1A of CitiFunds Fixed Income Trust to be
signed on its behalf by the undersigned, thereunto duly authorized, in Grand
Cayman, Cayman Islands, on the 14th day of December, 1998.
THE PREMIUM PORTFOLIOS
on behalf of Government Income Portfolio and U.S.
Fixed Income Portfolio
By: Tamie Ebanks-Cunningham
---------------------------------
Tamie Ebanks-Cunningham,
Assistant Secretary of
The Premium Portfolios
This Post-Effective Amendment to the Registration Statement on Form N-1A
of CitiFunds Fixed Income Trust has been signed by the following persons in the
capacities indicated on December 14, 1998.
<TABLE>
<CAPTION>
Signature Title
<S> <C>
Philip W. Coolidge* President, Principal Executive Officer and Trustee
--------------------------------
Philip W. Coolidge
John R. Elder* Principal Financial Officer and Principal
-------------------------------- Accounting Officer
John R. Elder
Elliott J. Berv* Trustee
--------------------------------
Elliott J. Berv
Mark T. Finn* Trustee
--------------------------------
Mark T. Finn
C. Oscar Morong, Jr.* Trustee
--------------------------------
C. Oscar Morong, Jr.
Walter E. Robb, III* Trustee
---------------------------------
Walter E. Robb, III
E. Kirby Warren* Trustee
---------------------------------
E. Kirby Warren
*By: Tamie Ebanks-Cunningham
-------------------------
Tamie Ebanks-Cunningham
Executed by Tamie Ebanks-Cunningham
on behalf of those indicated as attorney in
fact.
</TABLE>
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No.: Description:
<S> <C>
5(a) Management Agreement between the Registrant and Citibank, N.A., as manager
to CitiFunds Intermediate Income Portfolio
6(a) Form of Amended and Restated Distribution Agreement between the Registrant
and CFBDS, Inc. ("CFBDS"), as distributor with respect to Class A shares of
CitiFunds Short-Term U.S. Government Income Portfolio
6(b) Form of Amended and Restated Distribution Agreement between the Registrant
and CFBDS, as distributor with respect to Class A shares of CitiFunds
Intermediate Income Portfolio and CitiFunds Diversified Income Portfolio
6(c) Form of Distribution Agreement between the Registrant and CFBDS, as
distributor with respect to Class B shares of CitiFunds Intermediate Income
Portfolio and CitiFunds Diversified Income Portfolio
10 Opinion and consent of counsel
11 Independent Accountants' consent
15(a) Form of Amended and Restated Distribution Plan of the Registrant for Class A
Shares of CitiFunds Short-Term U.S. Government Income Portfolio
15(b) Form of Amended and Restated Service Plan of the Registrant for Class A
Shares of CitiFunds Intermediate Income Portfolio and CitiFunds Diversified
Income Portfolio
15(c) Form of Service Plan of the Registrant for Class B Shares of CitiFunds
Intermediate Income Portfolio and CitiFunds Diversified Income Portfolio
18 Form of Multiple Class Plan of the Registrant
25(b) Powers of Attorney for The Premium Portfolios
</TABLE>
Exhibit 5(a)
MANAGEMENT AGREEMENT
LANDMARK FIXED INCOME FUNDS
Landmark Intermediate Income Fund
MANAGEMENT AGREEMENT, dated as of January 1, 1998, by and between Landmark
Fixed Income Funds, a Massachusetts business trust (the "Trust"), and Citibank,
N.A., a national banking association ("Citibank" or the "Manager").
W I T N E S S E T H:
WHEREAS, the Trust engages in business as an open-end management
investment company and is registered as such under the Investment Company Act
of 1940, as amended (collectively with the rules and regulations promulgated
thereunder and any exemptive orders thereunder, the "1940 Act"), and
WHEREAS, the Trust wishes to engage Citibank to provide certain investment
advisory and administrative services for the series of the Trust designated as
Landmark Intermediate Income Fund (the "Fund"), and Citibank is willing to
provide such investment advisory and administrative services for the Fund on
the terms and conditions hereinafter set forth.
NOW, THEREFORE, in consideration of the mutual covenants and agreements of
the parties hereto as herein set forth, the parties covenant and agree as
follows:
1. Duties of Citibank. (a) Citibank shall act as the Manager for the Fund
and as such shall furnish continuously an investment program and shall
determine from time to time what securities shall be purchased, sold or
exchanged and what portion of the assets of the Fund shall be held uninvested,
subject always to the restrictions of the Trust's Declaration of Trust, dated
as of June 23, 1986, and By-laws, as each may be amended from time to time
(respectively, the "Declaration" and the "By-Laws"), the provisions of the 1940
Act, and the then-current Registration Statement of the Trust with respect to
the Fund. The Manager shall also make recommendations as to the manner in which
voting rights, rights to consent to corporate action and any other rights
<PAGE>
pertaining to the Fund's portfolio securities shall be exercised. Should the
Board of Trustees of the Trust at any time, however, make any definite
determination as to investment policy applicable to the Fund and notify the
Manager thereof in writing, the Manager shall be bound by such determination
for the period, if any, specified in such notice or until similarly notified
that such determination has been revoked. The Manager shall take, on behalf of
the Fund, all actions which it deems necessary to implement the investment
policies determined as provided above, and in particular to place all orders
for the purchase or sale of securities for the Fund's account with the brokers
or dealers selected by it, and to that end the Manager is authorized as the
agent of the Trust to give instructions to the custodian or any subcustodian of
the Fund as to deliveries of securities and payments of cash for the account of
the Fund. In connection with the selection of such brokers or dealers and the
placing of such orders, brokers or dealers may be selected who also provide
brokerage and research services (as those terms are defined in Section 28(e) of
the Securities Exchange Act of 1934) to the Fund and/or the other accounts over
which the Manager or its affiliates exercise investment discretion. The Manager
is authorized to pay a broker or dealer who provides such brokerage and
research services a commission for executing a portfolio transaction for the
Fund which is in excess of the amount of commission another broker or dealer
would have charged for effecting that transaction if the Manager determines in
good faith that such amount of commission is reasonable in relation to the
value of the brokerage and research services provided by such broker or dealer.
This determination may be viewed in terms of either that particular transaction
or the overall responsibilities which the Manager and its affiliates have with
respect to accounts over which they exercise investment discretion. In making
purchases or sales of securities or other property for the account of the Fund,
the Manager may deal with itself or with the Trustees of the Trust or the
Trust's underwriter or distributor, to the extent such actions are permitted by
the 1940 Act. In providing the services and assuming the obligations set forth
herein, the Manager may employ, at its own expense, or may request that the
Trust employ at the Fund's expense, one or more subadvisers; provided that in
each case the Manager shall supervise the activities of each subadviser. Any
agreement between the Manager and a subadviser shall be subject to the renewal,
termination and amendment provisions applicable to this Agreement. Any
agreement between the Trust on behalf of the Fund and a subadviser may be
terminated by the Manager at any time on not more than 60 days' nor less than
30 days' written notice to the Trust and the subadviser.
<PAGE>
(b) Subject to the direction and control of the Board of Trustees of the
Trust, Citibank shall perform such administrative and management services as
may from time to time be reasonably requested by the Trust, which shall include
without limitation: (i) providing office space, equipment and clerical
personnel necessary for maintaining the organization of the Trust and for
performing the administrative and management functions herein set forth; (ii)
supervising the overall administration of the Trust, including negotiation of
contracts and fees with and the monitoring of performance and billings of the
Trust's transfer agent, shareholder servicing agents, custodian and other
independent contractors or agents; (iii) preparing and, if applicable, filing
all documents required for compliance by the Trust with applicable laws and
regulations, including registration statements, prospectuses and statements of
additional information, semi-annual and annual reports to shareholders, proxy
statements and tax returns; (iv) preparation of agendas and supporting
documents for and minutes of meetings of Trustees, committees of Trustees and
shareholders; and (v) arranging for maintenance of books and records of the
Trust. Notwithstanding the foregoing, Citibank shall not be deemed to have
assumed any duties with respect to, and shall not be responsible for, the
distribution of shares of beneficial interest in the Fund, nor shall Citibank
be deemed to have assumed or have any responsibility with respect to functions
specifically assumed by any transfer agent, fund accounting agent, custodian or
shareholder servicing agent of the Trust or the Fund. In providing
administrative and management services as set forth herein, Citibank may, at
its own expense, employ one or more subadministrators; provided that Citibank
shall remain fully responsible for the performance of all administrative and
management duties set forth herein and shall supervise the activities of each
subadministrator.
2. Allocation of Charges and Expenses. Citibank shall furnish at its own
expense all necessary services, facilities and personnel in connection with its
responsibilities under Section 1 above. Except as provided in the foregoing
sentence, it is understood that the Trust will pay from the assets of the Fund
all of its own expenses allocable to the Fund including, without limitation,
organization costs of the Fund; compensation of Trustees who are not
"affiliated persons" of Citibank; governmental fees; interest charges; loan
commitment fees; taxes; membership dues in industry associations allocable to
the Trust; fees and expenses of independent auditors, legal counsel and any
transfer agent, distributor, shareholder servicing agent, registrar or dividend
disbursing agent of the Trust; expenses of issuing and redeeming shares of
beneficial interest and servicing shareholder accounts; expenses of preparing,
typesetting, printing and mailing prospectuses, statements of additional
information, shareholder reports, notices, proxy statements and reports to
<PAGE>
governmental officers and commissions and to existing shareholders of the Fund;
expenses connected with the execution, recording and settlement of security
transactions; insurance premiums; fees and expenses of the custodian for all
services to the Fund, including safekeeping of funds and securities and
maintaining required books and accounts; expenses of calculating the net asset
value of the Fund (including but not limited to the fees of independent pricing
services); expenses of meetings of the Fund's shareholders; expenses relating
to the registration and qualification of shares of the Fund; and such
nonrecurring or extraordinary expenses as may arise, including those relating
to actions, suits or proceedings to which the Trust on behalf of the Fund may
be a party and the legal obligation which the Trust may have to indemnify its
Trustees and officers with respect thereto.
3. Compensation of Citibank. For the services to be rendered and the
facilities to be provided by Citibank hereunder, the Trust shall pay to
Citibank from the assets of the Fund a management fee computed daily and paid
monthly at an annual rate equal to 0.70% of the Fund's average daily net assets
for the Fund's then-current fiscal year. If Citibank provides services
hereunder for less than the whole of any period specified in this Section 3,
the compensation to Citibank shall be accordingly adjusted and prorated.
4. Covenants of Citibank. Citibank agrees that it will not deal with
itself, or with the Trustees of the Trust or the Trust's principal underwriter
or distributor, as principals in making purchases or sales of securities or
other property for the account of the Fund, except as permitted by the 1940
Act, will not take a long or short position in shares of beneficial interest in
the Fund except as permitted by the Declaration, and will comply with all other
provisions of the Declaration and By-Laws and the then-current Registration
Statement applicable to the Fund relative to Citibank and its directors and
officers.
5. Limitation of Liability of Citibank. Citibank shall not be liable for
any error of judgment or mistake of law or for any loss arising out of any
investment or for any act or omission in the execution of securities
transactions for the Fund, except for willful misfeasance, bad faith or gross
negligence in the performance of its duties, or by reason of reckless disregard
of its obligations and duties hereunder. As used in this Section 5, the term
"Citibank" shall include directors, officers and employees of Citibank as well
as Citibank itself.
<PAGE>
6. Activities of Citibank. The services of Citibank to the Fund are not to
be deemed to be exclusive, Citibank being free to render investment advisory,
administrative and/or other services to others. It is understood that Trustees,
officers, and shareholders of the Trust are or may be or may become interested
in Citibank, as directors, officers, employees, or otherwise and that
directors, officers and employees of Citibank are or may become similarly
interested in the Trust and that Citibank may be or may become interested in
the Trust as a shareholder or otherwise.
7. Duration, Termination and Amendments of this Agreement. This Agreement
shall become effective as of the day and year first above written, shall govern
the relations between the parties hereto thereafter and shall remain in force
until August 8, 1999, on which date it will terminate unless its continuance
after August 8, 1999 is "specifically approved at least annually" (a) by the
vote of a majority of the Trustees of the Trust who are not "interested
persons" of the Trust or of Citibank at a meeting specifically called for the
purpose of voting on such approval, and (b) by the Board of Trustees of the
Trust or by "vote of a majority of the outstanding voting securities" of the
Fund.
This Agreement may be terminated at any time without the payment of any
penalty by the Trustees or by the "vote of a majority of the outstanding voting
securities" of the Fund, or by Citibank, in each case on not more than 60 days'
nor less than 30 days' written notice to the other party. This Agreement shall
automatically terminate in the event of its "assignment."
This Agreement may be amended only if such amendment is approved by the
"vote of a majority of the outstanding voting securities" of the Fund (except
for any such amendment as may be effected in the absence of such approval
without violating the 1940 Act).
The terms "specifically approved at least annually," "vote of a majority
of the outstanding voting securities," "assignment," "affiliated person," and
"interested persons," when used in this Agreement, shall have the respective
meanings specified in, and shall be construed in a manner consistent with, the
1940 Act, subject, however, to such exemptions as may be granted by the
Securities and Exchange Commission under said Act.
Each party acknowledges and agrees that all obligations of the Trust under
this Agreement are binding only with respect to the Fund; that any liability of
the Trust under this Agreement, or in connection with the transactions
<PAGE>
contemplated herein, shall be discharged only out of the assets of the Fund;
and that no other series of the Trust shall be liable with respect to this
Agreement or in connection with the transactions contemplated herein.
The undersigned officer of the Trust has executed this Agreement not
individually, but as an officer under the Declaration and the obligations of
this Agreement are not binding upon any of the Trustees, officers or
shareholders of the Trust individually.
8. Governing Law. This Agreement shall be construed and the provisions
thereof interpreted under and in accordance with the laws of The Commonwealth
of Massachusetts.
9. Use of Name. The Trust hereby acknowledges that any and all rights in
or to the name "Citi" which exist on the date of this Agreement or which may
arise hereafter are, and under any and all circumstances shall continue to be,
the sole property of Citibank; that Citibank may assign any or all of such
rights to another party or parties without the consent of the Trust; and that
Citibank may permit other parties, including other investment companies, to use
the word "Citi" in their names. If Citibank, or its assignee as the case may
be, ceases to serve as the adviser to and administrator of the Trust, the Trust
hereby agrees to take promptly any and all actions which are necessary or
desirable to change its name so as to delete the word "Citi."
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered in their names and on their behalf by the undersigned,
thereunto duly authorized, all as of the day and year first above written.
LANDMARK FIXED INCOME FUNDS CITIBANK, N.A.
By: Philip Coolidge By: Lawrence Keblusek
Title: President Title: U.S. C.I.O.
Exhibit 6(a)
FORM OF AMENDED AND RESTATED
DISTRIBUTION AGREEMENT
AGREEMENT, dated as of June 24, 1986 and amended and restated as of
_________ __, 19__, by and between CitiFunds Fixed Income Trust (formerly,
Landmark Fixed Income Funds), a Massachusetts business trust (the "Trust"), and
CFBDS, Inc., a Massachusetts corporation ("Distributor"). This Agreement
relates solely to Shares of Beneficial Interest designated "Class A."
WHEREAS, the Trust engages in business as an openend management investment
company and is registered as such under the Investment Company Act of 1940, as
amended (the "1940 Act");
WHEREAS, the Trust's shares of beneficial interest ("Shares") are divided
into separate series representing interests in separate funds of securities and
other assets;
WHEREAS, the Trust wishes to retain the services of a distributor for
Class A Shares of each of the Trust's series listed on Exhibit A hereto (the
"Funds") and has registered the Shares of the Funds under the Securities Act of
1933, as amended (the "1933 Act");
WHEREAS, the Trust has adopted an Amended and Restated Distribution Plan
pursuant to Rule 12b1 under the 1940 Act (the "Distribution Plan") and may
enter into related agreements providing for the distribution and servicing of
Shares of the Funds;
WHEREAS, Distributor has agreed to act as distributor of the Class A
Shares of the Funds for the period of this Agreement;
NOW, THEREFORE, it is hereby agreed between the parties hereto as follows:
1. Appointment of Distributor.
(a) The Trust hereby appoints Distributor its exclusive agent for the
distribution of Class A Shares of the Funds in jurisdictions wherein such
Shares may be legally offered for sale; provided, however, that the Trust in
its absolute discretion may issue Shares of the Funds in connection with (i)
the payment or reinvestment of dividends or distributions; (ii) any merger or
consolidation of the Trust or of the Funds with any other investment company or
<PAGE>
trust or any personal holding company, or the acquisition of the assets of any
such entity or another series of the Trust; or (iii) any offer of exchange
permitted by Section 11 of the 1940 Act.
(b) Distributor hereby accepts such appointment as exclusive agent for the
distribution of Class A Shares of the Funds and agrees that it will sell the
Shares as agent for the Trust at prices determined as hereinafter provided and
on the terms hereinafter set forth, all according to the then-current
prospectus and statement of additional information of each Fund (collectively,
the "Prospectus" and the "Statement of Additional Information"), applicable
laws, rules and regulations and the Declaration of Trust of the Trust.
Distributor agrees to use its best efforts to solicit orders for the sale of
Shares of the Funds, and agrees to transmit promptly to the Trust (or to the
transfer agent of the Funds, if so instructed in writing by the Trust) any
orders received by it for purchase or redemption of Shares.
(c) Distributor may sell Shares of the Funds to or through qualified
securities dealers, financial institutions or others. Distributor will require
each dealer or other such party to conform to the provisions of this Agreement,
the Prospectus, the Statement of Additional Information and applicable law; and
neither Distributor nor any such dealers or others shall withhold the placing
of purchase orders for Shares so as to make a profit thereby.
(d) Distributor shall order Shares of the Funds from the Trust only to the
extent that it shall have received unconditional purchase orders therefor.
Distributor will not make, or authorize any dealers or others to make: (i) any
short sales of Shares; or (ii) any sales of Shares to any Trustee or officer of
the Trust, any officer or director of Distributor or any corporation or
association furnishing investment advisory, managerial or supervisory services
to the Trust, or to any such corporation or association, unless such sales are
made in accordance with the Prospectus and the Statement of Additional
Information.
(e) Distributor is not authorized by the Trust to give any information or
make any representations regarding Shares of the Funds, except such information
or representations as are contained in the Prospectus, the Statement of
Additional Information or advertisements and sales literature prepared by or on
behalf of the Trust for Distributor's use.
(f) The Trust agrees to execute any and all documents, to furnish any and
all information and otherwise to take all actions which may be reasonably
necessary in the discretion of the Trust's officers in connection with the
<PAGE>
qualification of Shares of each Fund for sale in such states as Distributor and
the Trust agree.
(g) No Shares of any Fund shall be offered by either Distributor or the
Trust under this Agreement, and no orders for the purchase or sale of such
Shares hereunder shall be accepted by the Trust, if and so long as the
effectiveness of the Trust's then current registration statement as to Shares
of that Fund or any necessary amendments thereto shall be suspended under any
of the provisions of the 1933 Act, or if and so long as a current prospectus
for Shares of that Fund as required by Section 10 of the 1933 Act is not on
file with the Securities and Exchange Commission; provided, however, that
nothing contained in this paragraph (g) shall in any way restrict the Trust's
obligation to repurchase any Shares from any shareholder in accordance with the
provisions of the applicable Fund's Prospectus or charter documents.
(h) Notwithstanding any provision hereof, the Trust may terminate, suspend
or withdraw the offering of Shares of any Fund whenever, in its sole
discretion, it deems such action to be desirable.
2. Offering Price of Shares. All Fund Shares sold under this Agreement
shall be sold at the public offering price per Share in effect at the time of
the sale, as described in the Prospectus. The public offering price of the
Class A Shares of each Fund shall be the net asset value of such Shares plus
the amount of any applicable sales charge, as provided in the Prospectus. The
excess, if any, of the public offering price of the Shares over the net asset
value of the Shares, and any contingent deferred sales charge applicable to
Class A Shares of any Fund as set forth in the applicable Fund's Prospectus,
may be paid to, or retained by, the Distributor, securities dealers, financial
institutions (including banks) and others, as partial compensation for their
services in connection with the sale of Class A Shares. At no time shall the
Trust receive less than the full net asset value of the Shares of each Fund,
determined in the manner set forth in the Prospectus and the Statement of
Additional Information. Distributor also may receive such compensation under
the Trust's Distribution Plan for Class A Shares as may be authorized by the
Trustees of the Trust from time to time.
3. Furnishing of Information.
(a) The Trust shall furnish to Distributor copies of any information,
financial statements and other documents that Distributor may reasonably
request for use in connection with the sale of Shares of the Funds under this
Agreement. The Trust shall also make available a sufficient number of copies of
the Funds' Prospectus and Statement of Additional Information for use by the
Distributor.
<PAGE>
(b) The Trust agrees to advise Distributor immediately in writing:
(i) of any request by the Securities and Exchange Commission for
amendments to any registration statement concerning a Fund or to a
Prospectus or for additional information;
(ii) in the event of the issuance by the Securities and Exchange
Commission of any stop order suspending the effectiveness of any such
registration statement or Prospectus or the initiation of any proceeding
for that purpose;
(iii) of the happening of any event which makes untrue any statement
of a material fact made in any such registration statement or Prospectus
or which requires the making of a change in such registration statement or
Prospectus in order to make the statements therein not misleading; and
(iv) of all actions of the Securities and Exchange Commission with
respect to any amendments to any such registration statement or Prospectus
which may from time to time be filed with the Securities and Exchange
Commission.
4. Expenses.
(a) The Trust will pay or cause to be paid the following expenses:
organization costs of the Funds; compensation of Trustees who are not
"affiliated persons" of the Distributor; governmental fees; interest charges;
loan commitment fees; taxes; membership dues in industry associations allocable
to the Trust; fees and expenses of independent auditors, legal counsel and any
transfer agent, distributor, shareholder servicing agent, registrar or dividend
disbursing agent of the Trust; expenses of issuing and redeeming shares of
beneficial interest and servicing shareholder accounts; expenses of preparing,
typesetting, printing and mailing prospectuses, statements of additional
information, shareholder reports, notices, proxy statements and reports to
governmental officers and commissions and to existing shareholders of the
Funds; expenses connected with the execution, recording and settlement of
security transactions; insurance premiums; fees and expenses of the custodian
for all services to the Funds, including safekeeping of funds and securities
and maintaining required books and accounts; expenses of calculating the net
asset value of the Funds (including but not limited to the fees of independent
pricing services); expenses of meetings of shareholders; expenses relating to
the issuance, registration and qualification of shares; and such non-recurring
or extraordinary expenses as may arise, including those relating to actions,
<PAGE>
suits or proceedings to which the Trust may be a party and the legal obligation
which the Trust may have to indemnify its Trustees and officers with respect
thereto.
(b) Except as otherwise provided in this Agreement and except to the
extent such expenses are borne by the Trust pursuant to the Distribution Plan,
Distributor will pay or cause to be paid all expenses connected with its own
qualification as a dealer under state and federal laws and all other expenses
incurred by Distributor in connection with the sale of Shares of each Fund as
contemplated by this Agreement.
(c) Distributor shall prepare and deliver reports to the Trustees of the
Trust on a regular basis, at least quarterly, showing the expenditures with
respect to each Fund pursuant to the Distribution Plan and the purposes
therefor, as well as any supplemental reports that the Trustees of the Trust,
from time to time, may reasonably request.
5. Repurchase of Shares. Distributor as agent and for the account of the
Trust may repurchase Shares of the Funds offered for resale to it and redeem
such Shares at their net asset value, subject to the imposition of any deferred
sales charge.
6. Indemnification by the Trust. In the absence of willful misfeasance,
bad faith, gross negligence or reckless disregard of obligations or duties
hereunder on the part of Distributor, the Trust agrees to indemnify
Distributor, its officers and directors, and any person which controls
Distributor within the meaning of the 1933 Act against any and all claims,
demands, liabilities and expenses that any such indemnified party may incur
under the 1933 Act, or common law or otherwise, arising out of or based upon
any alleged untrue statement of a material fact contained in the registration
statement for any Fund, any Prospectus or Statement of Additional Information,
or any advertisements or sales literature prepared by or on behalf of the Trust
for Distributor's use, or any omission to state a material fact therein, the
omission of which makes any statement contained therein misleading, unless such
statement or omission was made in reliance upon and in conformity with
information furnished to the Trust in connection therewith by or on behalf of
Distributor. Nothing herein contained shall require the Trust to take any
action contrary to any provision of its Declaration of Trust or any applicable
statute or regulation.
7. Indemnification by Distributor. Distributor agrees to indemnify the
Trust, its officers and Trustees and any person which controls the Trust within
the meaning of the 1933 Act against any and all claims, demands, liabilities
and expenses that any such indemnified party may incur under the 1933 Act, or
<PAGE>
common law or otherwise, arising out of or based upon (i) any alleged untrue
statement of a material fact contained in the registration statement for any
Fund, any Prospectus or Statement of Additional Information, or any
advertisements or sales literature prepared by or on behalf of the Trust for
Distributor's use, or any omission to state a material fact therein, the
omission of which makes any statement contained therein misleading, if such
statement or omission was made in reliance upon and in conformity with
information furnished to the Trust in connection therewith by or on behalf of
Distributor; and (ii) any act or deed of Distributor or its sales
representatives that has not been authorized by the Trust in any Prospectus or
Statement of Additional Information or by this Agreement.
8. Term and Termination.
(a) Unless terminated as herein provided, this Agreement shall continue in
effect as to each Fund until November 13, 1999 and shall continue in effect for
successive periods of one year, but only so long as each such continuance is
specifically approved by votes of a majority of both the Trustees of the Trust
and the Trustees of the Trust who are not parties to this Agreement or
interested persons (as defined in the 1940 Act) of any such party and who have
no direct or indirect financial interest in this Agreement or in the operation
of the Distribution Plan or in any agreement related thereto ("Independent
Trustees"), cast in person at a meeting called for the purpose of voting on
such approval.
(b) This Agreement may be terminated as to any Fund on not less than
thirty days' nor more than sixty days' written notice to the other party.
(c) This Agreement shall automatically terminate in the event of its
assignment (as defined in the 1940 Act).
9. Limitation of Liability. The obligations of the Trust hereunder shall
not be binding upon any of the Trustees, officers or shareholders of the Trust
personally, but shall bind only the assets and property of the particular Fund
in question, and not any other Fund or series of the Trust. The term "CitiFunds
Fixed Income Trust" means and refers to the Trustees from time to time serving
under the Declaration of Trust of the Trust, a copy of which is on file with
the Secretary of the Commonwealth of Massachusetts. The execution and delivery
of this Agreement has been authorized by the Trustees, and this Agreement has
been signed on behalf of the Trust by an authorized officer of the Trust,
acting as such and not individually, and neither such authorization by such
Trustees nor such execution and delivery by such officer shall be deemed to
have been made by any of them individually or to impose any liability on any of
<PAGE>
them personally, but shall bind only the assets and property of the Trust as
provided in the Declaration of Trust.
10. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts and the
provisions of the 1940 Act.
IN WITNESS THEREOF, the parties hereto have caused this Agreement to be
executed as of the date first written above.
CitiFunds Fixed Income Trust
By:_______________________________
CFBDS, Inc.
By:_______________________________
<PAGE>
Exhibit A
Funds
CitiFunds Short-Term U.S. Government Income Portfolio
Exhibit 6(b)
FORM OF AMENDED AND RESTATED
DISTRIBUTION AGREEMENT
AGREEMENT, dated as of June 24, 1986 and amended and restated as of
_________ __, 19__, by and between CitiFunds Fixed Income Trust (formerly,
Landmark Fixed Income Funds), a Massachusetts business trust (the "Trust"), and
CFBDS, Inc., a Massachusetts corporation ("Distributor"). This Agreement
relates solely to (i) Shares of Beneficial Interest of each series of the Trust
with Shares that are not divided into classes and (ii) Shares of Beneficial
Interest of each series of the Trust that are divided into classes which are
designated "Class A" ("Shares").
WHEREAS, the Trust engages in business as an openend management investment
company and is registered as such under the Investment Company Act of 1940, as
amended (the "1940 Act");
WHEREAS, the Trust's shares of beneficial interest are divided into
separate series representing interests in separate funds of securities and
other assets;
WHEREAS, the Trust wishes to retain the services of a distributor for
Shares of each of the Trust's series listed on Exhibit A hereto (the "Funds")
and has registered the Shares of the Funds under the Securities Act of 1933, as
amended (the "1933 Act");
WHEREAS, the Trust has adopted an Amended and Restated Service Plan
pursuant to Rule 12b1 under the 1940 Act (the "Service Plan") and may enter
into related agreements providing for the distribution and servicing of Shares
of the Funds;
WHEREAS, Distributor has agreed to act as distributor of the Shares of the
Funds for the period of this Agreement;
NOW, THEREFORE, it is hereby agreed between the parties hereto as follows:
1. Appointment of Distributor.
(a) The Trust hereby appoints Distributor its exclusive agent for the
distribution of Shares of the Funds in jurisdictions wherein such Shares may be
legally offered for sale; provided, however, that the Trust in its absolute
discretion may issue Shares of the Funds in connection with (i) the payment or
<PAGE>
reinvestment of dividends or distributions; (ii) any merger or consolidation of
the Trust or of the Funds with any other investment company or trust or any
personal holding company, or the acquisition of the assets of any such entity
or another series of the Trust; or (iii) any offer of exchange permitted by
Section 11 of the 1940 Act.
(b) Distributor hereby accepts such appointment as exclusive agent for the
distribution of Shares of the Funds and agrees that it will sell the Shares as
agent for the Trust at prices determined as hereinafter provided and on the
terms hereinafter set forth, all according to the then-current prospectus and
statement of additional information of each Fund (collectively, the
"Prospectus" and the "Statement of Additional Information"), applicable laws,
rules and regulations and the Declaration of Trust of the Trust. Distributor
agrees to use its best efforts to solicit orders for the sale of Shares of the
Funds, and agrees to transmit promptly to the Trust (or to the transfer agent
of the Funds, if so instructed in writing by the Trust) any orders received by
it for purchase or redemption of Shares.
(c) Distributor may sell Shares of the Funds to or through qualified
securities dealers, financial institutions or others. Distributor will require
each dealer or other such party to conform to the provisions of this Agreement,
the Prospectus, the Statement of Additional Information and applicable law; and
neither Distributor nor any such dealers or others shall withhold the placing
of purchase orders for Shares so as to make a profit thereby.
(d) Distributor shall order Shares of the Funds from the Trust only to the
extent that it shall have received unconditional purchase orders therefor.
Distributor will not make, or authorize any dealers or others to make: (i) any
short sales of Shares; or (ii) any sales of Shares to any Trustee or officer of
the Trust, any officer or director of Distributor or any corporation or
association furnishing investment advisory, managerial or supervisory services
to the Trust, or to any such corporation or association, unless such sales are
made in accordance with the Prospectus and the Statement of Additional
Information.
(e) Distributor is not authorized by the Trust to give any information or
make any representations regarding Shares of the Funds, except such information
or representations as are contained in the Prospectus, the Statement of
Additional Information or advertisements and sales literature prepared by or on
behalf of the Trust for Distributor's use.
(f) The Trust agrees to execute any and all documents, to furnish any and
all information and otherwise to take all actions which may be reasonably
<PAGE>
necessary in the discretion of the Trust's officers in connection with the
qualification of Shares of each Fund for sale in such states as Distributor and
the Trust agree.
(g) No Shares of any Fund shall be offered by either Distributor or the
Trust under this Agreement, and no orders for the purchase or sale of such
Shares hereunder shall be accepted by the Trust, if and so long as the
effectiveness of the Trust's then current registration statement as to Shares
of that Fund or any necessary amendments thereto shall be suspended under any
of the provisions of the 1933 Act, or if and so long as a current prospectus
for Shares of that Fund as required by Section 10 of the 1933 Act is not on
file with the Securities and Exchange Commission; provided, however, that
nothing contained in this paragraph (g) shall in any way restrict the Trust's
obligation to repurchase any Shares from any shareholder in accordance with the
provisions of the applicable Fund's Prospectus or charter documents.
(h) Notwithstanding any provision hereof, the Trust may terminate, suspend
or withdraw the offering of Shares of any Fund whenever, in its sole
discretion, it deems such action to be desirable.
2. Offering Price of Shares. All Fund Shares sold under this Agreement
shall be sold at the public offering price per Share in effect at the time of
the sale, as described in the Prospectus. The public offering price of the
Shares of each Fund shall be the net asset value of such Shares plus the amount
of any applicable sales charge, as provided in the Prospectus. The excess, if
any, of the public offering price of the Shares over the net asset value of the
Shares, and any contingent deferred sales charge applicable to Shares of any
Fund as set forth in the applicable Fund's Prospectus, may be paid to, or
retained by, the Distributor, securities dealers, financial institutions
(including banks) and others, as partial compensation for their services in
connection with the sale of Shares. At no time shall the Trust receive less
than the full net asset value of the Shares of each Fund, determined in the
manner set forth in the Prospectus and the Statement of Additional Information.
Distributor also may receive such compensation under the Trust's Service Plan
for Shares as may be authorized by the Trustees of the Trust from time to time.
3. Furnishing of Information.
(a) The Trust shall furnish to Distributor copies of any information,
financial statements and other documents that Distributor may reasonably
request for use in connection with the sale of Shares of the Funds under this
Agreement. The Trust shall also make available a sufficient number of copies of
<PAGE>
the Funds' Prospectus and Statement of Additional Information for use by the
Distributor.
(b) The Trust agrees to advise Distributor immediately in writing:
(i) of any request by the Securities and Exchange Commission for
amendments to any registration statement concerning a Fund or to a
Prospectus or for additional information;
(ii) in the event of the issuance by the Securities and Exchange
Commission of any stop order suspending the effectiveness of any such
registration statement or Prospectus or the initiation of any proceeding
for that purpose;
(iii) of the happening of any event which makes untrue any statement
of a material fact made in any such registration statement or Prospectus
or which requires the making of a change in such registration statement or
Prospectus in order to make the statements therein not misleading; and
(iv) of all actions of the Securities and Exchange Commission with
respect to any amendments to any such registration statement or Prospectus
which may from time to time be filed with the Securities and Exchange
Commission.
4. Expenses.
(a) The Trust will pay or cause to be paid the following expenses:
organization costs of the Funds; compensation of Trustees who are not
"affiliated persons" of the Distributor; governmental fees; interest charges;
loan commitment fees; taxes; membership dues in industry associations allocable
to the Trust; fees and expenses of independent auditors, legal counsel and any
transfer agent, distributor, shareholder servicing agent, registrar or dividend
disbursing agent of the Trust; expenses of issuing and redeeming shares of
beneficial interest and servicing shareholder accounts; expenses of preparing,
typesetting, printing and mailing prospectuses, statements of additional
information, shareholder reports, notices, proxy statements and reports to
governmental officers and commissions and to existing shareholders of the
Funds; expenses connected with the execution, recording and settlement of
security transactions; insurance premiums; fees and expenses of the custodian
for all services to the Funds, including safekeeping of funds and securities
and maintaining required books and accounts; expenses of calculating the net
asset value of the Funds (including but not limited to the fees of independent
pricing services); expenses of meetings of shareholders; expenses relating to
<PAGE>
the issuance, registration and qualification of shares; and such non-recurring
or extraordinary expenses as may arise, including those relating to actions,
suits or proceedings to which the Trust may be a party and the legal obligation
which the Trust may have to indemnify its Trustees and officers with respect
thereto.
(b) Except as otherwise provided in this Agreement and except to the
extent such expenses are borne by the Trust pursuant to the Service Plan,
Distributor will pay or cause to be paid all expenses connected with its own
qualification as a dealer under state and federal laws and all other expenses
incurred by Distributor in connection with the sale of Shares of each Fund as
contemplated by this Agreement.
(c) Distributor shall prepare and deliver reports to the Trustees of the
Trust on a regular basis, at least quarterly, showing the expenditures with
respect to each Fund pursuant to the Service Plan and the purposes therefor, as
well as any supplemental reports that the Trustees of the Trust, from time to
time, may reasonably request.
5. Repurchase of Shares. Distributor as agent and for the account of the
Trust may repurchase Shares of the Funds offered for resale to it and redeem
such Shares at their net asset value, subject to the imposition of any deferred
sales charge.
6. Indemnification by the Trust. In the absence of willful misfeasance,
bad faith, gross negligence or reckless disregard of obligations or duties
hereunder on the part of Distributor, the Trust agrees to indemnify
Distributor, its officers and directors, and any person which controls
Distributor within the meaning of the 1933 Act against any and all claims,
demands, liabilities and expenses that any such indemnified party may incur
under the 1933 Act, or common law or otherwise, arising out of or based upon
any alleged untrue statement of a material fact contained in the registration
statement for any Fund, any Prospectus or Statement of Additional Information,
or any advertisements or sales literature prepared by or on behalf of the Trust
for Distributor's use, or any omission to state a material fact therein, the
omission of which makes any statement contained therein misleading, unless such
statement or omission was made in reliance upon and in conformity with
information furnished to the Trust in connection therewith by or on behalf of
Distributor. Nothing herein contained shall require the Trust to take any
action contrary to any provision of its Declaration of Trust or any applicable
statute or regulation.
7. Indemnification by Distributor. Distributor agrees to indemnify the
Trust, its officers and Trustees and any person which controls the Trust within
<PAGE>
the meaning of the 1933 Act against any and all claims, demands, liabilities
and expenses that any such indemnified party may incur under the 1933 Act, or
common law or otherwise, arising out of or based upon (i) any alleged untrue
statement of a material fact contained in the registration statement for any
Fund, any Prospectus or Statement of Additional Information, or any
advertisements or sales literature prepared by or on behalf of the Trust for
Distributor's use, or any omission to state a material fact therein, the
omission of which makes any statement contained therein misleading, if such
statement or omission was made in reliance upon and in conformity with
information furnished to the Trust in connection therewith by or on behalf of
Distributor; and (ii) any act or deed of Distributor or its sales
representatives that has not been authorized by the Trust in any Prospectus or
Statement of Additional Information or by this Agreement.
8. Term and Termination.
(a) Unless terminated as herein provided, this Agreement shall continue in
effect as to each Fund until November 13, 1999 and shall continue in effect for
successive periods of one year, but only so long as each such continuance is
specifically approved by votes of a majority of both the Trustees of the Trust
and the Trustees of the Trust who are not parties to this Agreement or
interested persons (as defined in the 1940 Act) of any such party and who have
no direct or indirect financial interest in this Agreement or in the operation
of the Service Plan or in any agreement related thereto ("Independent
Trustees"), cast in person at a meeting called for the purpose of voting on
such approval.
(b) This Agreement may be terminated as to any Fund on not less than
thirty days' nor more than sixty days' written notice to the other party.
(c) This Agreement shall automatically terminate in the event of its
assignment (as defined in the 1940 Act).
9. Limitation of Liability. The obligations of the Trust hereunder shall
not be binding upon any of the Trustees, officers or shareholders of the Trust
personally, but shall bind only the assets and property of the particular Fund
in question, and not any other Fund or series of the Trust. The term "CitiFunds
Fixed Income Trust" means and refers to the Trustees from time to time serving
under the Declaration of Trust of the Trust, a copy of which is on file with
the Secretary of the Commonwealth of Massachusetts. The execution and delivery
of this Agreement has been authorized by the Trustees, and this Agreement has
been signed on behalf of the Trust by an authorized officer of the Trust,
acting as such and not individually, and neither such authorization by such
Trustees nor such execution and delivery by such officer shall be deemed to
<PAGE>
have been made by any of them individually or to impose any liability on any of
them personally, but shall bind only the assets and property of the Trust as
provided in the Declaration of Trust.
10. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts and the
provisions of the 1940 Act.
IN WITNESS THEREOF, the parties hereto have caused this Agreement to be
executed as of the date first written above.
CitiFunds Fixed Income Trust
By:_______________________________
CFBDS, Inc.
By:_______________________________
<PAGE>
Exhibit A
Funds
CitiFunds Intermediate Income Portfolio
CitiFunds Diversified Income Portfolio
Exhibit 6(c)
FORM OF DISTRIBUTION AGREEMENT
AGREEMENT, dated as of ________ __, 199_, by and between CitiFunds Fixed
Income Trust (formerly, Landmark Fixed Income Funds), a Massachusetts business
trust (the "Trust"), and CFBDS, Inc., a Massachusetts corporation
("Distributor"). This Agreement relates solely to Shares of Beneficial Interest
designated "Class B."
WHEREAS, the Trust engages in business as an openend management investment
company and is registered as such under the Investment Company Act of 1940, as
amended (the "1940 Act");
WHEREAS, the Trust's shares of beneficial interest ("Shares") are divided
into separate series representing interests in separate funds of securities and
other assets;
WHEREAS, the Trust wishes to retain the services of a distributor for
Class B Shares of each of the Trust's series listed on Exhibit A hereto (the
"Funds") and has registered the Shares of the Funds under the Securities Act of
1933, as amended (the "1933 Act");
WHEREAS, the Trust has adopted a Service Plan pursuant to Rule 12b1 under
the 1940 Act (the "Service Plan") and may enter into related agreements
providing for the distribution and servicing of Shares of the Funds;
WHEREAS, Distributor has agreed to act as distributor of the Class B
Shares of the Funds for the period of this Agreement;
NOW, THEREFORE, it is hereby agreed between the parties hereto as follows:
1. Appointment of Distributor.
(a) The Trust hereby appoints Distributor its exclusive agent for the
distribution of Class B Shares of the Funds in jurisdictions wherein such
Shares may be legally offered for sale; provided, however, that the Trust in
its absolute discretion may issue Shares of the Funds in connection with (i)
the payment or reinvestment of dividends or distributions; (ii) any merger or
consolidation of the Trust or of the Funds with any other investment company or
trust or any personal holding company, or the acquisition of the assets of any
<PAGE>
such entity or another series of the Trust; or (iii) any offer of exchange
permitted by Section 11 of the 1940 Act.
(b) Distributor hereby accepts such appointment as exclusive agent for the
distribution of Class B Shares of the Funds and agrees that it will sell the
Shares as agent for the Trust at prices determined as hereinafter provided and
on the terms hereinafter set forth, all according to the then-current
prospectus and statement of additional information of each Fund (collectively,
the "Prospectus" and the "Statement of Additional Information"), applicable
laws, rules and regulations and the Declaration of Trust of the Trust.
Distributor agrees to use its best efforts to solicit orders for the sale of
Shares of the Funds, and agrees to transmit promptly to the Trust (or to the
transfer agent of the Funds, if so instructed in writing by the Trust) any
orders received by it for purchase or redemption of Shares.
(c) Distributor may sell Shares of the Funds to or through qualified
securities dealers, financial institutions or others. Distributor will require
each dealer or other such party to conform to the provisions of this Agreement,
the Prospectus, the Statement of Additional Information and applicable law; and
neither Distributor nor any such dealers or others shall withhold the placing
of purchase orders for Shares so as to make a profit thereby.
(d) Distributor shall order Shares of the Funds from the Trust only to the
extent that it shall have received unconditional purchase orders therefor.
Distributor will not make, or authorize any dealers or others to make: (i) any
short sales of Shares; or (ii) any sales of Shares to any Trustee or officer of
the Trust, any officer or director of Distributor or any corporation or
association furnishing investment advisory, managerial or supervisory services
to the Trust, or to any such corporation or association, unless such sales are
made in accordance with the Prospectus and the Statement of Additional
Information.
(e) Distributor is not authorized by the Trust to give any information or
make any representations regarding Shares of the Funds, except such information
or representations as are contained in the Prospectus, the Statement of
Additional Information or advertisements and sales literature prepared by or on
behalf of the Trust for Distributor's use.
(f) The Trust agrees to execute any and all documents, to furnish any and
all information and otherwise to take all actions which may be reasonably
necessary in the discretion of the Trust's officers in connection with the
qualification of Shares of each Fund for sale in such states as Distributor and
the Trust agree.
<PAGE>
(g) No Shares of any Fund shall be offered by either Distributor or the
Trust under this Agreement, and no orders for the purchase or sale of such
Shares hereunder shall be accepted by the Trust, if and so long as the
effectiveness of the Trust's then current registration statement as to Shares
of that Fund or any necessary amendments thereto shall be suspended under any
of the provisions of the 1933 Act, or if and so long as a current prospectus
for Shares of that Fund as required by Section 10 of the 1933 Act is not on
file with the Securities and Exchange Commission; provided, however, that
nothing contained in this paragraph (g) shall in any way restrict the Trust's
obligation to repurchase any Shares from any shareholder in accordance with the
provisions of the applicable Fund's Prospectus or charter documents.
(h) Notwithstanding any provision hereof, the Trust may terminate, suspend
or withdraw the offering of Shares of any Fund whenever, in its sole
discretion, it deems such action to be desirable.
2. Offering Price of Shares. All Fund Shares sold under this Agreement
shall be sold at the public offering price per Share in effect at the time of
the sale, as described in the Prospectus. The public offering price of the
Class B Shares of each Fund shall be the net asset value of such Shares, as
provided in the Prospectus. Any contingent deferred sales charge applicable to
Class B Shares of any Fund as set forth in the applicable Fund's Prospectus,
may be paid to, or retained by, the Distributor, securities dealers, financial
institutions (including banks) and others, as partial compensation for their
services in connection with the sale of Class B Shares. At no time shall the
Trust receive less than the full net asset value of the Shares of each Fund,
determined in the manner set forth in the Prospectus and the Statement of
Additional Information. Distributor also may receive such compensation under
the Trust's Service Plan for Class B Shares as may be authorized by the
Trustees of the Trust from time to time.
3. Furnishing of Information.
(a) The Trust shall furnish to Distributor copies of any information,
financial statements and other documents that Distributor may reasonably
request for use in connection with the sale of Shares of the Funds under this
Agreement. The Trust shall also make available a sufficient number of copies of
the Funds' Prospectus and Statement of Additional Information for use by the
Distributor.
(b) The Trust agrees to advise Distributor immediately in writing:
<PAGE>
(i) of any request by the Securities and Exchange Commission for
amendments to any registration statement concerning a Fund or to a
Prospectus or for additional information;
(ii) in the event of the issuance by the Securities and Exchange
Commission of any stop order suspending the effectiveness of any such
registration statement or Prospectus or the initiation of any proceeding
for that purpose;
(iii) of the happening of any event which makes untrue any statement
of a material fact made in any such registration statement or Prospectus
or which requires the making of a change in such registration statement or
Prospectus in order to make the statements therein not misleading; and
(iv) of all actions of the Securities and Exchange Commission with
respect to any amendments to any such registration statement or Prospectus
which may from time to time be filed with the Securities and Exchange
Commission.
4. Expenses.
(a) The Trust will pay or cause to be paid the following expenses:
organization costs of the Funds; compensation of Trustees who are not
"affiliated persons" of the Distributor; governmental fees; interest charges;
loan commitment fees; taxes; membership dues in industry associations allocable
to the Trust; fees and expenses of independent auditors, legal counsel and any
transfer agent, distributor, shareholder servicing agent, registrar or dividend
disbursing agent of the Trust; expenses of issuing and redeeming shares of
beneficial interest and servicing shareholder accounts; expenses of preparing,
typesetting, printing and mailing prospectuses, statements of additional
information, shareholder reports, notices, proxy statements and reports to
governmental officers and commissions and to existing shareholders of the
Funds; expenses connected with the execution, recording and settlement of
security transactions; insurance premiums; fees and expenses of the custodian
for all services to the Funds, including safekeeping of funds and securities
and maintaining required books and accounts; expenses of calculating the net
asset value of the Funds (including but not limited to the fees of independent
pricing services); expenses of meetings of shareholders; expenses relating to
the issuance, registration and qualification of shares; and such non-recurring
or extraordinary expenses as may arise, including those relating to actions,
suits or proceedings to which the Trust may be a party and the legal obligation
which the Trust may have to indemnify its Trustees and officers with respect
thereto.
<PAGE>
(b) Except as otherwise provided in this Agreement and except to the
extent such expenses are borne by the Trust pursuant to the Service Plan,
Distributor will pay or cause to be paid all expenses connected with its own
qualification as a dealer under state and federal laws and all other expenses
incurred by Distributor in connection with the sale of Shares of each Fund as
contemplated by this Agreement.
(c) Distributor shall prepare and deliver reports to the Trustees of the
Trust on a regular basis, at least quarterly, showing the expenditures with
respect to each Fund pursuant to the Service Plan and the purposes therefor, as
well as any supplemental reports that the Trustees of the Trust, from time to
time, may reasonably request.
5. Repurchase of Shares. Distributor as agent and for the account of the
Trust may repurchase Shares of the Funds offered for resale to it and redeem
such Shares at their net asset value, subject to the imposition of any deferred
sales charge.
6. Indemnification by the Trust. In the absence of willful misfeasance,
bad faith, gross negligence or reckless disregard of obligations or duties
hereunder on the part of Distributor, the Trust agrees to indemnify
Distributor, its officers and directors, and any person which controls
Distributor within the meaning of the 1933 Act against any and all claims,
demands, liabilities and expenses that any such indemnified party may incur
under the 1933 Act, or common law or otherwise, arising out of or based upon
any alleged untrue statement of a material fact contained in the registration
statement for any Fund, any Prospectus or Statement of Additional Information,
or any advertisements or sales literature prepared by or on behalf of the Trust
for Distributor's use, or any omission to state a material fact therein, the
omission of which makes any statement contained therein misleading, unless such
statement or omission was made in reliance upon and in conformity with
information furnished to the Trust in connection therewith by or on behalf of
Distributor. Nothing herein contained shall require the Trust to take any
action contrary to any provision of its Declaration of Trust or any applicable
statute or regulation.
7. Indemnification by Distributor. Distributor agrees to indemnify the
Trust, its officers and Trustees and any person which controls the Trust within
the meaning of the 1933 Act against any and all claims, demands, liabilities
and expenses that any such indemnified party may incur under the 1933 Act, or
common law or otherwise, arising out of or based upon (i) any alleged untrue
statement of a material fact contained in the registration statement for any
Fund, any Prospectus or Statement of Additional Information, or any
<PAGE>
advertisements or sales literature prepared by or on behalf of the Trust for
Distributor's use, or any omission to state a material fact therein, the
omission of which makes any statement contained therein misleading, if such
statement or omission was made in reliance upon and in conformity with
information furnished to the Trust in connection therewith by or on behalf of
Distributor; and (ii) any act or deed of Distributor or its sales
representatives that has not been authorized by the Trust in any Prospectus or
Statement of Additional Information or by this Agreement.
8. Term and Termination.
(a) Unless terminated as herein provided, this Agreement shall continue in
effect as to each Fund until November 13, 1999 and shall continue in effect for
successive periods of one year, but only so long as each such continuance is
specifically approved by votes of a majority of both the Trustees of the Trust
and the Trustees of the Trust who are not parties to this Agreement or
interested persons (as defined in the 1940 Act) of any such party and who have
no direct or indirect financial interest in this Agreement or in the operation
of the Service Plan or in any agreement related thereto ("Independent
Trustees"), cast in person at a meeting called for the purpose of voting on
such approval.
(b) This Agreement may be terminated as to any Fund on not less than
thirty days' nor more than sixty days' written notice to the other party.
(c) This Agreement shall automatically terminate in the event of its
assignment (as defined in the 1940 Act).
9. Limitation of Liability. The obligations of the Trust hereunder shall
not be binding upon any of the Trustees, officers or shareholders of the Trust
personally, but shall bind only the assets and property of the particular Fund
in question, and not any other Fund or series of the Trust. The term "CitiFunds
Fixed Income Trust " means and refers to the Trustees from time to time serving
under the Declaration of Trust of the Trust, a copy of which is on file with
the Secretary of the Commonwealth of Massachusetts. The execution and delivery
of this Agreement has been authorized by the Trustees, and this Agreement has
been signed on behalf of the Trust by an authorized officer of the Trust,
acting as such and not individually, and neither such authorization by such
Trustees nor such execution and delivery by such officer shall be deemed to
have been made by any of them individually or to impose any liability on any of
them personally, but shall bind only the assets and property of the Trust as
provided in the Declaration of Trust.
<PAGE>
10. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts and the
provisions of the 1940 Act.
IN WITNESS THEREOF, the parties hereto have caused this Agreement to be
executed as of the date first written above.
CitiFunds Fixed Income Trust
By:_______________________________
CFBDS, Inc.
By:_______________________________
<PAGE>
Exhibit A
Funds
CitiFunds Intermediate Income Portfolio
CitiFunds Diversified Income Portfolio
Exhibit 10
BINGHAM DANA LLP
150 Federal Street
Boston, Massachusetts 02110
December 16, 1998
CitiFunds Fixed Income Trust
21 Milk Street, 5th Floor
Boston, Massachusetts 02109
Ladies and Gentlemen:
We have acted as counsel to CitiFunds Fixed Income Trust, a Massachusetts
business trust (the "Trust"), in connection with the Trust's Registration
Statement on Form N-1A and Post-Effective Amendment No. 27 thereto filed with
the Securities and Exchange Commission on December 16, 1998 (as amended, the
"Registration Statement"), with respect to the Class A and Class B shares (the
"Shares") of the separate series of the Trust designated as CitiFunds
Short-Term U.S. Government Income Portfolio, CitiFunds Intermediate Income
Portfolio and CitiFunds Diversified Income Portfolio (collectively, the
"Funds").
In connection with this opinion, we have examined the following described
documents:
(a) the Registration Statement;
(b) a certificate of the Secretary of State of the Commonwealth of
Massachusetts as to the existence of the Trust;
(c) copies, certified by the Secretary of State of the Commonwealth of
Massachusetts, of the Trust's Declaration of Trust and of all amendments
thereto on file in the office of the Secretary of State; and
(d) a certificate executed by the President of the Trust, certifying as
to, and attaching copies of, the Trust's By-Laws and certain votes of the
Trustees of the Trust authorizing the issuance of the Shares.
<PAGE>
In such examination, we have assumed the genuineness of all signatures,
the conformity to the originals of all of the documents reviewed by us as
copies, the authenticity and completeness of all documents reviewed by us in
original or copy form and the legal competence of each individual executing any
document.
This opinion is based entirely on our review of the documents listed
above. We have made no other review or investigation of any kind whatsoever,
and we have assumed, without independent inquiry, the accuracy of the
information set forth in such documents.
This opinion is limited solely to the laws of the Commonwealth of
Massachusetts (other than the Massachusetts Uniform Securities Act, as to which
we express no opinion) as applied by courts in such Commonwealth to the extent
such laws may apply to or govern the matters covered by this opinion.
We understand that all of the foregoing assumptions and limitations are
acceptable to you.
Based upon and subject to the foregoing, please be advised that it is our
opinion that the Shares, when issued and sold in accordance with the
Registration Statement and the Trust's Declaration of Trust and By-laws, will
be legally issued, fully paid and non-assessable, except that, as set forth in
the Registration Statement, shareholders of the Funds may under certain
circumstances be held personally liable for the Trust's obligations.
We hereby consent to the filing of this opinion as an exhibit to the
Registration Statement.
Very truly yours,
/s/ Bingham Dana LLP
BINGHAM DANA LLP
Exhibit 11
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in this Post Effective Amendment
No. 27 to Registration Statement No. 33-6540 of CitiFunds Fixed Income Trust of
our report dated January 30, 1998 appearing in the annual report to
shareholders for the year ended December 31, 1997 of CitiFunds Intermediate
Income Portfolio, (a separate series of CitiFunds Fixed Income Trust), and to
the references to us under the headings "Condensed Financial Information" in
the Prospectus and "Independent Accountants and Financial Statements" in the
Statement of Additional Information, both of which are part of such
Registration Statement.
Deloitte & Touche LLP
Boston, Massachusetts
December 11, 1998
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Prospectus and
Statement of Additional Information constituting parts of this Post-Effective
Amendment No. 27 to the registration statement on Form N-1A (the "Registration
Statement") of CitiFunds Fixed Income Trust (formerly Landmark Fixed Income
Funds) of our report dated February 2, 1998, relating to the financial
statements and financial highlights of CitiFunds Short-Term U.S. Government
Income Portfolio (formerly Landmark U.S. Government Income Fund) appearing in
the December 31, 1997 Annual Report of Landmark U.S. Government Income Fund,
which are also incorporated by reference into the Registration Statement. We
also consent to the references to us under the headings "Condensed Financial
Information" and "Counsel and Independent Auditors" in the Prospectus and under
the headings "Auditors" and "Independent Accountants and Financial Statements"
in the Statement of Additional Information.
PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 14, 1998
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Statement of
Additional Information constituting part of this Post-Effective Amendment No.
27 to the registration statement on Form N-1A (the "Registration Statement") of
CitiFunds Fixed Income Trust (formerly Landmark Fixed Income Funds) of our
report dated February 2, 1998, relating to the financial statements and
financial highlights of the Government Income Portfolio appearing in the
December 31, 1997 Annual Report of Landmark U.S. Government Income Fund, which
are also incorporated by reference into the Registration Statement. We also
consent to the references to us under the headings "Auditors" and "Independent
Accountants and Financial Statements" in the Statement of Additional
Information.
PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP Chartered Accountants
Toronto, Ontario
December 14, 1998
Exhibit 15(a)
FORM OF AMENDED AND RESTATED
DISTRIBUTION PLAN
DISTRIBUTION PLAN, dated as of June 24, 1986 and amended and restated
effective as of __________ __, 199_, of CitiFunds Fixed Income Trust, a
Massachusetts business trust (the "Trust"), with respect to shares of
beneficial interest of its series CitiFunds Short-Term U.S. Government Income
Portfolio and any other series of the Trust adopting this plan (the "Series").
This Plan relates solely to shares of beneficial interest of each Series which
are designated "Class A" ("Shares").
WHEREAS, the Trust engages in business as an openend management investment
company and is registered as such under the Investment Company Act of 1940, as
amended (the "1940 Act");
WHEREAS, the Trust's shares of beneficial interest are divided into
separate series representing interests in separate funds of securities and
other assets;
WHEREAS, the Trust intends to distribute Shares in accordance with Rule
12b-1 under the 1940 Act, and wishes to adopt this Plan as a plan of
distribution pursuant to Rule 12b-1;
WHEREAS, the Trustees of the Trust as a whole, and the Trustees who are
not interested persons of the Trust (as defined in the 1940 Act) and who have
no direct or indirect financial interest in the operation of this Plan or in
any agreement relating hereto (the "NonInterested Trustees"), having
determined, in the exercise of reasonable business judgment and in light of
their fiduciary duties under state law and under Section 36(a) and (b) of the
1940 Act, that there is a reasonable likelihood that this Plan will benefit the
Trust and the shareholders of the Series, have approved this Plan by votes cast
at a meeting called for the purpose of voting hereon and on any agreements
related hereto;
WHEREAS, an initial sales charge may be paid by investors who purchase
Shares, and CFBDS, Inc. (the "Distributor"), broker-dealers, banks and other
financial intermediaries may receive such sales charge as partial compensation
for their services in connection with the sale of Shares;
WHEREAS, each Series or the Distributor may impose certain deferred sales
charges in connection with the repurchase of Shares by such Series, and the
Series may pay to the Distributor, dealers and others, or the Series may permit
such persons to retain, as the case may be, all or any portion of such deferred
sales charges;
<PAGE>
NOW, THEREFORE, the Trust hereby adopts this Plan as a plan of
distribution in accordance with Rule 12b-1 under the 1940 Act, with the terms
of the Plan being as follows:
1. Distribution and Servicing Activities. Subject to the supervision of
the Trustees of the Trust, the Trust may:
(a) engage, directly or indirectly, in any activities primarily
intended to result in the sale of Shares of the Series, which activities
may include, but are not limited to (i) payments to the Trust's
Distributor for distribution services, (ii) payments to securities
dealers, financial institutions (which may include banks) and others in
respect of the sale of Shares of the Series, (iii) payments for
advertising, marketing or other promotional activity, and (iv) payments
for preparation, printing, and distribution of prospectuses and statements
of additional information and reports of the Trust for recipients other
than regulators and existing shareholders of the Trust; and
(b) make payments, directly or indirectly, to the Trust's
Distributor, securities dealers, financial institutions (which may include
banks) and others for providing personal service and/or the maintenance of
shareholder accounts.
The Trust is authorized to engage in the activities listed above either
directly or through other persons with which the Trust has entered into
agreements related to this Plan.
2. Sales Charges. It is understood that, under certain circumstances, an
initial sales charge may be paid by investors who purchase Shares of each
Series, and the Series may pay to the Distributor, securities dealers,
financial institutions (including banks) and others, or the Series may permit
such persons to retain, as the case may be, such sales charge as partial
compensation for their services in connection with the sale of Shares. It is
also understood that, under certain circumstances, each Series or the
Distributor may impose certain deferred sales charges in connection with the
repurchase of Shares of such Series, and the Series may pay to the Distributor,
securities dealers, financial institutions (including banks) and others, or the
Series may permit such persons to retain, as the case may be, all or any
portion of such deferred sales charges.
<PAGE>
3. Maximum Expenditures. In addition to the sales charges discussed in
Section 2 above, as consideration for services performed and expenses incurred
in the performance of its obligations under the Distribution Agreement with the
Distributor, except in connection with print or electronic media advertising,
the Trust shall pay the Distributor from the assets of each Series a
distribution fee periodically at an annual rate not to exceed 0.15% of the
average daily net assets represented by Shares for its then-current fiscal
year. The Trust may also make payments directly to securities dealers,
financial institutions (including banks) and others in respect of the sale of
Shares of each Series and for providing personal service and/or the maintenance
of shareholder accounts, provided that the aggregate amount of such payments
made pursuant to this Plan, when added to the distribution fee paid pursuant to
the immediately preceding sentence, shall not exceed 0.15% of the average daily
net assets represented by Shares of each Series for its then-current fiscal
year. The Trust shall pay the Distributor an additional fee from the assets of
each Series at an annual rate not to exceed 0.05% of the average daily assets
represented by Shares of each Series for its then-current fiscal year in
anticipation of, or as reimbursement for, expenses incurred by the Distributor
in connection with print or electronic media advertising in connection with the
sale of Shares of such Series.
As partial consideration for the personal services and/or account
maintenance services performed by each broker-dealer, bank or other financial
intermediary in the performance of its obligations under its dealer or agency
agreement with the Distributor, each Series (excluding CitiFunds Short-Term
U.S. Government Income Portfolio) may pay each broker-dealer, bank or other
financial intermediary a service fee periodically at a rate not to exceed 0.25%
per annum of the portion of the average daily net assets of such Series that is
represented by Shares that are owned by investors for whom such broker-dealer,
bank or other financial intermediary is the holder or intermediary of record
("Service Fees"). That portion of each such Series' average daily net assets on
which the fees payable under this paragraph are calculated may be subject to
certain minimum amount requirements as may be determined and additional or
different dealer qualification standards that may be established from time to
time by the Series or the Distributor. The Distributor shall be entitled to be
paid any fees payable under this paragraph with respect to Shares for which no
intermediary of record exists or qualification standards have not been met as
partial consideration for personal services and/or account maintenance services
provided by the Distributor with respect to the Shares. The Service Fees
payable pursuant to this paragraph may from time to time be paid by each Series
either to the Distributor and the Distributor will then pay these fees on
<PAGE>
behalf of such Series, or directly to the applicable broker-dealer, bank or
other financial intermediary.
4. Trust's Expenses. The Trust shall pay all expenses of its operations,
including the following, and such expenses shall not constitute expenditures
under this Plan: organization costs of each Series; compensation of Trustees;
governmental fees; interest charges; loan commitment fees; taxes; membership
dues in industry associations allocable to the Trust; fees and expenses of
independent auditors, legal counsel and any transfer agent, distributor,
shareholder servicing agent, registrar or dividend disbursing agent of the
Trust; expenses of issuing and redeeming shares of beneficial interest and
servicing shareholder accounts; expenses of preparing, typesetting, printing
and mailing prospectuses, statements of additional information, shareholder
reports, notices, proxy statements and reports to governmental officers and
commissions and to existing shareholders of the Series; expenses connected with
the execution, recording and settlement of security transactions; insurance
premiums; fees and expenses of the custodian for all services to the Series,
including safekeeping of funds and securities and maintaining required books
and accounts; expenses of calculating the net asset value of the Series
(including but not limited to the fees of independent pricing services);
expenses of meetings of shareholders; expenses relating to the issuance,
registration and qualification of shares; and such non-recurring or
extraordinary expenses as may arise, including those relating to actions, suits
or proceedings to which the Trust may be a party and the legal obligation which
the Trust may have to indemnify its Trustees and officers with respect thereto.
5. Term and Termination. (a) Unless terminated as herein provided, this
Plan shall continue in effect until November 13, 1999 and shall continue in
effect for successive periods of one year, but only so long as each such
continuance is specifically approved by votes of a majority of both the
Trustees of the Trust and the Non-Interested Trustees, cast in person at a
meeting called for the purpose of voting on such approval.
(b) This Plan may be terminated at any time with respect to any Series by
a vote of a majority of the NonInterested Trustees or by a vote of a majority
of the outstanding voting securities, as defined in the 1940 Act, of Shares of
the applicable Series.
6. Amendments. This Plan may not be amended to increase materially the
maximum expenditures permitted by Section 3 hereof unless such amendment is
approved by a vote of the majority of the outstanding voting securities, as
defined in the 1940 Act, of Shares of the applicable Series, and no material
<PAGE>
amendment to this Plan shall be made unless approved in the manner provided for
annual renewal of this Plan in Section 5(a) hereof.
7. Selection and Nomination of Trustees. While this Plan is in effect, the
selection and nomination of the Non-Interested Trustees of the Trust shall be
committed to the discretion of such Non-Interested Trustees.
8. Quarterly Reports. The Treasurer of the Trust shall provide to the
Trustees of the Trust and the Trustees shall review quarterly a written report
of the amounts expended pursuant to this Plan and any related agreement and the
purposes for which such expenditures were made.
9. Recordkeeping. The Trust shall preserve copies of this Plan and any
related agreement and all reports made pursuant to Section 8 hereof, for a
period of not less than six years from the date of this Plan. Any such related
agreement or such reports for the first two years will be maintained in an
easily accessible place.
10. Governing Law. This Plan shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts and the
provisions of the 1940 Act.
Exhibit 15(b)
FORM OF AMENDED AND RESTATED
SERVICE PLAN
SERVICE PLAN, dated as of August 8, 1997 and amended and restated
effective as of __________ __, 199_, of CitiFunds Fixed Income Trust, a
Massachusetts business trust (the "Trust"), with respect to shares of
beneficial interest of its series CitiFunds Intermediate Income Portfolio and
CitiFunds Diversified Income Portfolio and any other series of the Trust
adopting this plan (the "Series"). This Plan relates solely to (i) shares of
beneficial interest of the Series that are not divided into Classes and (ii)
shares of beneficial interest of each of the Series that are divided into
Classes which are designated "Class A" ("Shares").
WHEREAS, the Trust engages in business as an openend management investment
company and is registered as such under the Investment Company Act of 1940, as
amended (the "1940 Act");
WHEREAS, the Trust's shares of beneficial interest are divided into
separate series representing interests in separate funds of securities and
other assets;
WHEREAS, the Trust intends to distribute Shares in accordance with Rule
12b-1 under the 1940 Act, and wishes to adopt this Plan as a plan of
distribution pursuant to Rule 12b-1;
WHEREAS, the Trustees of the Trust as a whole, and the Trustees who are
not interested persons of the Trust (as defined in the 1940 Act) and who have
no direct or indirect financial interest in the operation of this Plan or in
any agreement relating hereto (the "NonInterested Trustees"), having
determined, in the exercise of reasonable business judgment and in light of
their fiduciary duties under state law and under Section 36(a) and (b) of the
1940 Act, that there is a reasonable likelihood that this Plan will benefit the
Trust and the shareholders of the Series, have approved this Plan by votes cast
at a meeting called for the purpose of voting hereon and on any agreements
related hereto;
WHEREAS, an initial sales charge may be paid by investors who purchase
Shares, and CFBDS, Inc. (the "Distributor"), broker-dealers, banks and other
financial intermediaries may receive such sales charge as partial compensation
for their services in connection with the sale of Shares;
<PAGE>
WHEREAS, each Series or the Distributor may impose certain deferred sales
charges in connection with the repurchase of Shares by such Series, and the
Series may pay to the Distributor, dealers and others, or the Series may permit
such persons to retain, as the case may be, all or any portion of such deferred
sales charges;
NOW, THEREFORE, the Trust hereby adopts this Plan as a plan of
distribution in accordance with Rule 12b-1 under the 1940 Act, with the terms
of the Plan being as follows:
1. Distribution and Servicing Activities. Subject to the supervision of
the Trustees of the Trust, the Trust may:
(a) engage, directly or indirectly, in any activities primarily
intended to result in the sale of Shares of the Series, which activities
may include, but are not limited to (i) payments to the Trust's
Distributor for distribution services, (ii) payments to securities
dealers, financial institutions (which may include banks) and others in
respect of the sale of Shares of the Series, (iii) payments for
advertising, marketing or other promotional activity, and (iv) payments
for preparation, printing, and distribution of prospectuses and statements
of additional information and reports of the Trust for recipients other
than regulators and existing shareholders of the Trust; and
(b) make payments, directly or indirectly, to the Trust's
Distributor, securities dealers, financial institutions (which may include
banks) and others for providing personal service and/or the maintenance of
shareholder accounts.
The Trust is authorized to engage in the activities listed above either
directly or through other persons with which the Trust has entered into
agreements related to this Plan.
2. Sales Charges. It is understood that, under certain circumstances, an
initial sales charge may be paid by investors who purchase Shares of each
Series, and the Series may pay to the Distributor, securities dealers,
financial institutions (including banks) and others, or the Series may permit
such persons to retain, as the case may be, such sales charge as partial
compensation for their services in connection with the sale of Shares. It is
also understood that, under certain circumstances, each Series or the
Distributor may impose certain deferred sales charges in connection with the
repurchase of Shares of such Series, and the Series may pay to the Distributor,
securities dealers, financial institutions (including banks) and others, or the
<PAGE>
Series may permit such persons to retain, as the case may be, all or any
portion of such deferred sales charges.
3. Maximum Expenditures. The expenditures to be made by the Trust pursuant
to this Plan and the basis upon which payment of such expenditures will be made
shall be determined by the Trustees of the Trust, but in no event may such
expenditures exceed an amount calculated at the rate of 0.25% per annum of the
average daily net assets of the Shares of each Series. Payments pursuant to
this Plan may be made directly by the Trust to the Distributor or to other
persons with which the Trust has entered into agreements related to this Plan.
For purposes of determining the fees payable under this Plan, the value of each
Series' average daily net assets shall be computed in the manner specified in
the applicable Series' then-current prospectus and statement of additional
information.
4. Trust's Expenses. The Trust shall pay all expenses of its operations,
including the following, and such expenses shall not constitute expenditures
under this Plan: organization costs of each Series; compensation of Trustees;
governmental fees; interest charges; loan commitment fees; taxes; membership
dues in industry associations allocable to the Trust; fees and expenses of
independent auditors, legal counsel and any transfer agent, distributor,
shareholder servicing agent, registrar or dividend disbursing agent of the
Trust; expenses of issuing and redeeming shares of beneficial interest and
servicing shareholder accounts; expenses of preparing, typesetting, printing
and mailing prospectuses, statements of additional information, shareholder
reports, notices, proxy statements and reports to governmental officers and
commissions and to existing shareholders of the Series; expenses connected with
the execution, recording and settlement of security transactions; insurance
premiums; fees and expenses of the custodian for all services to the Series,
including safekeeping of funds and securities and maintaining required books
and accounts; expenses of calculating the net asset value of the Series
(including but not limited to the fees of independent pricing services);
expenses of meetings of shareholders; expenses relating to the issuance,
registration and qualification of shares; and such non-recurring or
extraordinary expenses as may arise, including those relating to actions, suits
or proceedings to which the Trust may be a party and the legal obligation which
the Trust may have to indemnify its Trustees and officers with respect thereto.
5. Term and Termination. (a) Unless terminated as herein provided, this
Plan shall continue in effect until November 13, 1999 and shall continue in
effect for successive periods of one year, but only so long as each such
continuance is specifically approved by votes of a majority of both the
<PAGE>
Trustees of the Trust and the Non-Interested Trustees, cast in person at a
meeting called for the purpose of voting on such approval.
(b) This Plan may be terminated at any time with respect to any Series by
a vote of a majority of the NonInterested Trustees or by a vote of a majority
of the outstanding voting securities, as defined in the 1940 Act, of Shares of
the applicable Series.
6. Amendments. This Plan may not be amended to increase materially the
maximum expenditures permitted by Section 3 hereof unless such amendment is
approved by a vote of the majority of the outstanding voting securities, as
defined in the 1940 Act, of Shares of the applicable Series, and no material
amendment to this Plan shall be made unless approved in the manner provided for
annual renewal of this Plan in Section 5(a) hereof.
7. Selection and Nomination of Trustees. While this Plan is in effect, the
selection and nomination of the Non-Interested Trustees of the Trust shall be
committed to the discretion of such Non-Interested Trustees.
8. Quarterly Reports. The Treasurer of the Trust shall provide to the
Trustees of the Trust and the Trustees shall review quarterly a written report
of the amounts expended pursuant to this Plan and any related agreement and the
purposes for which such expenditures were made.
9. Recordkeeping. The Trust shall preserve copies of this Plan and any
related agreement and all reports made pursuant to Section 8 hereof, for a
period of not less than six years from the date of this Plan. Any such related
agreement or such reports for the first two years will be maintained in an
easily accessible place.
10. Governing Law. This Plan shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts and the
provisions of the 1940 Act.
Exhibit 15(c)
FORM OF SERVICE PLAN
SERVICE PLAN, dated as of _________ __, ____, of CitiFunds Fixed Income
Trust, a Massachusetts business trust (the "Trust"), with respect to shares of
beneficial interest of its series CitiFunds Intermediate Income Portfolio and
CitiFunds Diversified Income Portfolio and any other series of the Trust
adopting this plan (the "Series"). This Plan relates solely to shares of
beneficial interest of each Series which are designated "Class B" ("Shares").
WHEREAS, the Trust engages in business as an openend management investment
company and is registered as such under the Investment Company Act of 1940, as
amended (the "1940 Act");
WHEREAS, the Trust's shares of beneficial interest are divided into
separate series representing interests in separate funds of securities and
other assets;
WHEREAS, the Trust intends to distribute Shares in accordance with Rule
12b-1 under the 1940 Act, and wishes to adopt this Plan as a plan of
distribution pursuant to Rule 12b-1;
WHEREAS, the Trustees of the Trust as a whole, and the Trustees who are
not interested persons of the Trust (as defined in the 1940 Act) and who have
no direct or indirect financial interest in the operation of this Plan or in
any agreement relating hereto (the "NonInterested Trustees"), having
determined, in the exercise of reasonable business judgment and in light of
their fiduciary duties under state law and under Section 36(a) and (b) of the
1940 Act, that there is a reasonable likelihood that this Plan will benefit the
Trust and the shareholders of the Series, have approved this Plan by votes cast
at a meeting called for the purpose of voting hereon and on any agreements
related hereto;
WHEREAS, each Series or CFBDS, Inc. (the "Distributor") may impose certain
deferred sales charges in connection with the repurchase of Shares by such
Series, and the Series may pay to the Distributor, dealers and others, or the
Series may permit such persons to retain, as the case may be, all or any
portion of such deferred sales charges;
NOW, THEREFORE, the Trust hereby adopts this Plan as a plan of
distribution in accordance with Rule 12b-1 under the 1940 Act, with the terms
of the Plan being as follows:
<PAGE>
1. Distribution and Servicing Activities. Subject to the supervision of
the Trustees of the Trust, the Trust may:
(a) engage, directly or indirectly, in any activities primarily
intended to result in the sale of Shares of the Series, which activities
may include, but are not limited to (i) payments to the Trust's
Distributor for distribution services, (ii) payments to securities
dealers, financial institutions (which may include banks) and others in
respect of the sale of Shares of the Series, (iii) payments for
advertising, marketing or other promotional activity, and (iv) payments
for preparation, printing, and distribution of prospectuses and statements
of additional information and reports of the Trust for recipients other
than regulators and existing shareholders of the Trust; and
(b) make payments, directly or indirectly, to the Trust's
Distributor, securities dealers, financial institutions (which may include
banks) and others for providing personal service and/or the maintenance of
shareholder accounts.
The Trust is authorized to engage in the activities listed above either
directly or through other persons with which the Trust has entered into
agreements related to this Plan.
2. Sales Charges. It is understood that, under certain circumstances, each
Series or the Distributor may impose certain deferred sales charges in
connection with the repurchase of Shares of such Series, and the Series may pay
to the Distributor, securities dealers, financial institutions (including
banks) and others, or the Series may permit such persons to retain, as the case
may be, all or any portion of such deferred sales charges.
3. Maximum Expenditures. The expenditures to be made by the Trust pursuant
to this Plan and the basis upon which payment of such expenditures will be made
shall be determined by the Trustees of the Trust, but in no event may such
expenditures exceed an amount calculated at the rate of 0.75% per annum of the
average daily net assets of the Shares of each Series. Payments pursuant to
this Plan may be made directly by the Trust to the Distributor or to other
persons with which the Trust has entered into agreements related to this Plan.
For purposes of determining the fees payable under this Plan, the value of each
Series' average daily net assets shall be computed in the manner specified in
the applicable Series' then-current prospectus and statement of additional
information.
<PAGE>
4. Trust's Expenses. The Trust shall pay all expenses of its operations,
including the following, and such expenses shall not constitute expenditures
under this Plan: organization costs of each Series; compensation of Trustees;
governmental fees; interest charges; loan commitment fees; taxes; membership
dues in industry associations allocable to the Trust; fees and expenses of
independent auditors, legal counsel and any transfer agent, distributor,
shareholder servicing agent, registrar or dividend disbursing agent of the
Trust; expenses of issuing and redeeming shares of beneficial interest and
servicing shareholder accounts; expenses of preparing, typesetting, printing
and mailing prospectuses, statements of additional information, shareholder
reports, notices, proxy statements and reports to governmental officers and
commissions and to existing shareholders of the Series; expenses connected with
the execution, recording and settlement of security transactions; insurance
premiums; fees and expenses of the custodian for all services to the Series,
including safekeeping of funds and securities and maintaining required books
and accounts; expenses of calculating the net asset value of the Series
(including but not limited to the fees of independent pricing services);
expenses of meetings of shareholders; expenses relating to the issuance,
registration and qualification of shares; and such non-recurring or
extraordinary expenses as may arise, including those relating to actions, suits
or proceedings to which the Trust may be a party and the legal obligation which
the Trust may have to indemnify its Trustees and officers with respect thereto.
5. Term and Termination. (a) This Plan shall become effective as to a
Series upon (i) approval by a vote of at least a majority of the outstanding
voting securities (as defined in the 1940 Act) of Shares of the particular
Series, and (ii) approval by a majority of the Trustees of the Trust and a
majority of the Non-Interested Trustees cast in person at a meeting called for
the purpose of voting on this Plan. Unless terminated as herein provided, this
Plan shall continue in effect until November 13, 1999 and shall continue in
effect for successive periods of one year, but only so long as each such
continuance is specifically approved by votes of a majority of both the
Trustees of the Trust and the Non-Interested Trustees, cast in person at a
meeting called for the purpose of voting on such approval.
(b) This Plan may be terminated at any time with respect to any Series by
a vote of a majority of the NonInterested Trustees or by a vote of a majority
of the outstanding voting securities, as defined in the 1940 Act, of Shares of
the applicable Series.
6. Amendments. This Plan may not be amended to increase materially the
maximum expenditures permitted by Section 3 hereof unless such amendment is
approved by a vote of the majority of the outstanding voting securities, as
<PAGE>
defined in the 1940 Act, of Shares of the applicable Series, and no material
amendment to this Plan shall be made unless approved in the manner provided for
annual renewal of this Plan in Section 5(a) hereof.
7. Selection and Nomination of Trustees. While this Plan is in effect, the
selection and nomination of the Non-Interested Trustees of the Trust shall be
committed to the discretion of such Non-Interested Trustees.
8. Quarterly Reports. The Treasurer of the Trust shall provide to the
Trustees of the Trust and the Trustees shall review quarterly a written report
of the amounts expended pursuant to this Plan and any related agreement and the
purposes for which such expenditures were made.
9. Recordkeeping. The Trust shall preserve copies of this Plan and any
related agreement and all reports made pursuant to Section 8 hereof, for a
period of not less than six years from the date of this Plan. Any such related
agreement or such reports for the first two years will be maintained in an
easily accessible place.
10. Governing Law. This Plan shall be governed by and construed in
accordance with the laws of the Commonwealth of Massachusetts and the
provisions of the 1940 Act.
Exhibit 18
CITIFUNDS FIXED INCOME TRUST
FORM OF MULTIPLE CLASS PLAN
MULTIPLE CLASS PLAN, dated as of November 13, 1998, of CitiFunds Fixed
Income Trust, a Massachusetts business trust (the "Trust"), with respect to
each of its series whether now existing or hereafter established (collectively,
the "Funds").
W I T N E S S E T H:
WHEREAS, the Trust is engaged in business as an open-end management
investment company and is registered under the Investment Company Act of 1940,
as amended (collectively with the rules and regulations promulgated thereunder,
the "1940 Act"); and
WHEREAS, the shares of beneficial interest (without par value) of the
Trust (the "Shares") are divided into separate series and may be divided into
one or more separate classes;
WHEREAS, the Trust desires to adopt this Multiple Class Plan (the "Plan")
on behalf of the Funds as a plan pursuant to Rule 18f-3 in order that the Funds
may issue multiple classes of Shares;
WHEREAS, the Board of Trustees of the Trust, in considering whether the
Trust should adopt and implement this Plan, has evaluated such information and
considered such pertinent factors as it deemed necessary to an informed
evaluation of this Plan and determination as to whether this Plan should be
adopted and implemented, and has determined that the adoption and
implementation of this Plan, including the expense allocation contemplated
herein, are in the best interests of each class of Shares individually, as well
as the best interests of the Funds;
NOW THEREFORE, the Trust hereby adopts this Plan pursuant to Rule 18f-3
under the 1940 Act, on the following terms and conditions:
1. The Funds may issue Shares in one or more classes (each, a "Class" and
collectively, the "Classes"). Shares so issued will have the rights and
preferences set forth in the Establishment and Designation of Classes and the
Trust's then current registration statement relating to the Funds.
<PAGE>
2. Shares issued in Classes will be issued subject to and in accordance
with the terms of Rule 18f-3 under the 1940 Act, including, without limitation:
(a) Each Class shall have a different arrangement for shareholder
services or the distribution of securities or both, and shall pay all of
the expenses of that arrangement;
(b) Each Class may pay a different share of other expenses, not
including advisory or custodial fees or other expenses related to the
management of the Trust's assets, if these expenses are actually incurred
in a different amount by that Class, or if the Class receives services of
a different kind or to a different degree than other Classes;
(c) Each Class shall have exclusive voting rights on any matter
submitted to shareholders that relates solely to its arrangement;
(d) Each Class shall have separate voting rights on any matter
submitted to shareholders in which the interests of one Class differ from
the interests of any other Class; and
(e) Except as otherwise permitted under Rule 18f-3 under the 1940
Act, each Class shall have the same rights and obligations as each other
Class.
3. Nothing herein contained shall be deemed to require the Trust to take
any action contrary to its Declaration of Trust or By-Laws or any applicable
statutory or regulatory requirement to which it is subject or by which it is
bound, or to relieve or deprive the Board of Trustees of the responsibility for
and control of the conduct of the affairs of the Trust.
4. This Plan shall become effective as to the Funds upon the later to
occur of (a) approval by a vote of the Board of Trustees and vote of a majority
of the Trustees who are not "interested persons" of the Trust (the "Qualified
Trustees"), and (b) __________.
5. This Plan shall continue in effect indefinitely unless terminated by a
vote of the Board of Trustees of the Trust. This Plan may be terminated at any
time with respect to the Funds by a vote of the Board of Trustees of the Trust.
This Plan supercedes any and all other multiple class plans heretofore approved
by the Board of Trustees of the Trust with respect to the Funds.
<PAGE>
6. This Plan may be amended at any time by the Board of Trustees of the
Trust, provided that any material amendment of this Plan shall be effective
only upon approval by a vote of the Board of Trustees of the Trust and a
majority of the Qualified Trustees.
7. This Plan shall be construed in accordance with the laws of the
Commonwealth of Massachusetts and the applicable provisions of the 1940 Act.
8. If any provision of this Plan shall be held or made invalid by a court
decision, statute, rule or otherwise, the remainder of the Plan shall not be
affected thereby.
Exhibit 25(b)
THE PREMIUM PORTFOLIOS
The undersigned hereby constitutes and appoints Philip W. Coolidge, John R.
Elder, Susan Jakuboski, Tamie Ebanks-Cunningham, Molly S. Mugler and Linda T.
Gibson, and each of them, with full powers of substitution as his true and
lawful attorneys and agents to execute in his name and on his behalf in any and
all capacities the Registration Statements on Form N-1A, and any and all
amendments thereto, filed by The Premium Portfolios (on behalf of each of its
series now or hereinafter created) (the "Registrant") with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended, the
Registration Statements on Form N-1A, and any and all amendments thereto, to be
executed by the Registrant and filed by another registrant with the Securities
and Exchange Commission under the Investment Company Act of 1940, as amended,
or under the Securities Act of 1933, as amended, and any and all other
instruments which such attorneys and agents, or any of them, deem necessary or
advisable to enable the Registrant to comply with the Investment Company Act of
1940, as amended, the rules, regulations and requirements of the Securities and
Exchange Commission, and the securities or Blue Sky laws of any state or other
jurisdiction; and the undersigned hereby ratifies and confirms as his own act
and deed any and all that such attorneys and agents, or any of them, shall do
or cause to be done by virtue hereof. Any one of such attorneys and agents
shall have, and may exercise, all of the powers hereby conferred.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 7th day of
August, 1998.
C. Oscar Morong, Jr.
- ------------------------
C. Oscar Morong, Jr.
At Paget, Bermuda
<PAGE>
THE PREMIUM PORTFOLIOS
The undersigned hereby constitutes and appoints Philip W. Coolidge, Susan
Jakuboski, Tamie Ebanks-Cunningham, Molly S. Mugler and Linda T. Gibson, and
each of them, with full powers of substitution as his true and lawful attorneys
and agents to execute in his name and on his behalf in any and all capacities
the Registration Statements on Form N-1A, and any and all amendments thereto,
filed by The Premium Portfolios (on behalf of each of its series now or
hereinafter created) (the "Registrant") with the Securities and Exchange
Commission under the Investment Company Act of 1940, as amended, the
Registration Statements on Form N-1A, and any and all amendments thereto, to be
executed by the Registrant and filed by another registrant with the Securities
and Exchange Commission under the Investment Company Act of 1940, as amended,
or under the Securities Act of 1933, as amended, and any and all other
instruments which such attorneys and agents, or any of them, deem necessary or
advisable to enable the Registrant to comply with the Investment Company Act of
1940, as amended, the rules, regulations and requirements of the Securities and
Exchange Commission, and the securities or Blue Sky laws of any state or other
jurisdiction; and the undersigned hereby ratifies and confirms as his own act
and deed any and all that such attorneys and agents, or any of them, shall do
or cause to be done by virtue hereof. Any one of such attorneys and agents
shall have, and may exercise, all of the powers hereby conferred.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 7th day of
August, 1998.
John R. Elder
- ------------------------
John R. Elder
At Paget, Bermuda
<PAGE>
THE PREMIUM PORTFOLIOS
The undersigned hereby constitutes and appoints Philip W. Coolidge, John R.
Elder, Susan Jakuboski, Tamie Ebanks-Cunningham, Molly S. Mugler and Linda T.
Gibson, and each of them, with full powers of substitution as his true and
lawful attorneys and agents to execute in his name and on his behalf in any and
all capacities the Registration Statements on Form N-1A, and any and all
amendments thereto, filed by The Premium Portfolios (on behalf of each of its
series now or hereinafter created) (the "Registrant") with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended, the
Registration Statements on Form N-1A, and any and all amendments thereto, to be
executed by the Registrant and filed by another registrant with the Securities
and Exchange Commission under the Investment Company Act of 1940, as amended,
or under the Securities Act of 1933, as amended, and any and all other
instruments which such attorneys and agents, or any of them, deem necessary or
advisable to enable the Registrant to comply with the Investment Company Act of
1940, as amended, the rules, regulations and requirements of the Securities and
Exchange Commission, and the securities or Blue Sky laws of any state or other
jurisdiction; and the undersigned hereby ratifies and confirms as his own act
and deed any and all that such attorneys and agents, or any of them, shall do
or cause to be done by virtue hereof. Any one of such attorneys and agents
shall have, and may exercise, all of the powers hereby conferred.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 7th day of
August, 1998.
Elliott J. Berv
- ------------------------
Elliott J. Berv
At Paget, Bermuda
<PAGE>
THE PREMIUM PORTFOLIOS
The undersigned hereby constitutes and appoints Philip W. Coolidge, John R.
Elder, Susan Jakuboski, Tamie Ebanks-Cunningham, Molly S. Mugler and Linda T.
Gibson, and each of them, with full powers of substitution as his true and
lawful attorneys and agents to execute in his name and on his behalf in any and
all capacities the Registration Statements on Form N-1A, and any and all
amendments thereto, filed by The Premium Portfolios (on behalf of each of its
series now or hereinafter created) (the "Registrant") with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended, the
Registration Statements on Form N-1A, and any and all amendments thereto, to be
executed by the Registrant and filed by another registrant with the Securities
and Exchange Commission under the Investment Company Act of 1940, as amended,
or under the Securities Act of 1933, as amended, and any and all other
instruments which such attorneys and agents, or any of them, deem necessary or
advisable to enable the Registrant to comply with the Investment Company Act of
1940, as amended, the rules, regulations and requirements of the Securities and
Exchange Commission, and the securities or Blue Sky laws of any state or other
jurisdiction; and the undersigned hereby ratifies and confirms as his own act
and deed any and all that such attorneys and agents, or any of them, shall do
or cause to be done by virtue hereof. Any one of such attorneys and agents
shall have, and may exercise, all of the powers hereby conferred.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 7th day of
August, 1998.
Mark T. Finn
- ------------------------
Mark T. Finn
At Paget, Bermuda
<PAGE>
THE PREMIUM PORTFOLIOS
The undersigned hereby constitutes and appoints Philip W. Coolidge, John R.
Elder, Susan Jakuboski, Tamie Ebanks-Cunningham, Molly S. Mugler and Linda T.
Gibson, and each of them, with full powers of substitution as his true and
lawful attorneys and agents to execute in his name and on his behalf in any and
all capacities the Registration Statements on Form N-1A, and any and all
amendments thereto, filed by The Premium Portfolios (on behalf of each of its
series now or hereinafter created) (the "Registrant") with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended, the
Registration Statements on Form N-1A, and any and all amendments thereto, to be
executed by the Registrant and filed by another registrant with the Securities
and Exchange Commission under the Investment Company Act of 1940, as amended,
or under the Securities Act of 1933, as amended, and any and all other
instruments which such attorneys and agents, or any of them, deem necessary or
advisable to enable the Registrant to comply with the Investment Company Act of
1940, as amended, the rules, regulations and requirements of the Securities and
Exchange Commission, and the securities or Blue Sky laws of any state or other
jurisdiction; and the undersigned hereby ratifies and confirms as his own act
and deed any and all that such attorneys and agents, or any of them, shall do
or cause to be done by virtue hereof. Any one of such attorneys and agents
shall have, and may exercise, all of the powers hereby conferred.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 7th day of
August, 1998.
Walter E. Robb, III
- ------------------------
Walter E. Robb, III
At Paget, Bermuda
<PAGE>
THE PREMIUM PORTFOLIOS
The undersigned hereby constitutes and appoints John R. Elder, Susan Jakuboski,
Tamie Ebanks-Cunningham, Molly S. Mugler and Linda T. Gibson, and each of them,
with full powers of substitution as his true and lawful attorneys and agents to
execute in his name and on his behalf in any and all capacities the
Registration Statements on Form N-1A, and any and all amendments thereto, filed
by The Premium Portfolios (on behalf of each of its series now or hereinafter
created) (the "Registrant") with the Securities and Exchange Commission under
the Investment Company Act of 1940, as amended, the Registration Statements on
Form N-1A, and any and all amendments thereto, to be executed by the Registrant
and filed by another registrant with the Securities and Exchange Commission
under the Investment Company Act of 1940, as amended, or under the Securities
Act of 1933, as amended, and any and all other instruments which such attorneys
and agents, or any of them, deem necessary or advisable to enable the
Registrant to comply with the Investment Company Act of 1940, as amended, the
rules, regulations and requirements of the Securities and Exchange Commission,
and the securities or Blue Sky laws of any state or other jurisdiction; and the
undersigned hereby ratifies and confirms as his own act and deed any and all
that such attorneys and agents, or any of them, shall do or cause to be done by
virtue hereof. Any one of such attorneys and agents shall have, and may
exercise, all of the powers hereby conferred.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand this 7th day of
August, 1998.
Philip W. Coolidge
- ------------------------
Philip W. Coolidge
At Paget, Bermuda
<PAGE>
THE PREMIUM PORTFOLIOS
The undersigned hereby constitutes and appoints Philip W. Coolidge, John R.
Elder, Susan Jakuboski, Tamie Ebanks-Cunningham, Molly S. Mugler and Linda T.
Gibson, and each of them, with full powers of substitution as his true and
lawful attorneys and agents to execute in his name and on his behalf in any and
all capacities the Registration Statements on Form N-1A, and any and all
amendments thereto, filed by The Premium Portfolios (on behalf of each of its
series now or hereinafter created) (the "Registrant") with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended, the
Registration Statements on Form N-1A, and any and all amendments thereto, to be
executed by the Registrant and filed by another registrant with the Securities
and Exchange Commission under the Investment Company Act of 1940, as amended,
or under the Securities Act of 1933, as amended, and any and all other
instruments which such attorneys and agents, or any of them, deem necessary or
advisable to enable the Registrant to comply with the Investment Company Act of
1940, as amended, the rules, regulations and requirements of the Securities and
Exchange Commission, and the securities or Blue Sky laws of any state or other
jurisdiction; and the undersigned hereby ratifies and confirms as his own act
and deed any and all that such attorneys and agents, or any of them, shall do
or cause to be done by virtue hereof. Any one of such attorneys and agents
shall have, and may exercise, all of the powers hereby conferred.
IN WITNESS WHEREOF, the undersigned has hereunto set his hand as of the 1st day
of September, 1998.
E. Kirby Warren
- ------------------------
E. Kirby Warren
At Hamilton, Bermuda
