Filing pursuant to Rule 497
1933 Act File. No. 33-10754
1940 Act File No. 811-4933
Commonwealth Cash Reserve Fund, Inc.
Supplement to Prospectus dated August 1, 1998
Obligations of Banks. The Fund may purchase bankers' acceptances and
certificates of deposit. Bankers acceptances are time drafts or bills of
exchange created to finance trade goods and "accepted" by either a domestic
bank or a foreign bank with an agency domiciled in the United States.
Certificates of deposit are securities evidencing deposits in domestic banks
and domestic offices of foreign banks. Banks obligations will be considered
for purchase by the Fund only if the securities are rated at least A-1 by
Standard & Poor's and P-1 by Moody's Investor Services, Inc., in the case of
securities with maturities of one year or less. A rating of at least AA by
Standard & Poor's and Aa by Moody's Investor Services, Inc., will be
required before any bank obligation with a remaining maturity of over one
year will be considered for purchase by the Fund. The Fund will not invest
in any bank obligation with more than thirteen months remaining until
maturity.
Municipal Obligations. The Fund may invest in the stocks, bonds and notes and
other evidences of indebtedness of municipal entities including any state of
the United States or any city, county, town or district situated in any one
of the states of the United States upon which there is no default. See
"Investment Polocies" in the Additional Statement for a discussion of
additional criteria that municipal obligations must meet to be eligible for
investment by the Fund. Municipal Obligations will only be considered for
purchase if they are legal investments for governmental units in Virginia
under Section 2.1-328 of the Code of Virginia. Subject to certain limitations
specified under this provision, permitted investments include securities
issued or guaranteed as to the payment of principal and interest by the
Commonwealth or other states and securities issued by the governmental units
of the Commonwealth or such other states.
