NAVIGATOR TAXABLE INCOME FUNDS
Legg Mason U.S. Government Intermediate-Term Portfolio
Legg Mason Investment Grade Income Portfolio
Legg Mason High Yield Portfolio
Supplement to the Prospectus dated May 1, 1996
Under the section entitled "Expenses," page 3, footnote A is revised to read:
A The expense ratio at December 31, 1995 for Navigator Shares of Government
Intermediate and Investment Grade would have been 0.74% and 0.88%,
respectively, had the Funds' Manager not agreed to waive management fees
and reimburse other expenses. The reimbursement agreement, wherein the
Manager has agreed to continue to waive fees and/or assume other expenses
to the extent the expenses attributable to Navigator Shares (exclusive of
taxes, interest, brokerage and extraordinary expenses) exceed during any
month an annual rate of 0.50% of average daily net assets for such month,
will remain in effect until the earlier of December 31, 1997, or, with
respect to Government Intermediate, until its net assets reach $400
million and, with respect to Investment Grade, until its net assets reach
$100 million, and unless extended will terminate on that date. If
Government Intermediate's assets total $400 million before December 31,
1997, the Manager has agreed not to increase this "cap" by more than 10
basis points. The Manager does not anticipate that Government
Intermediate's assets will total $400 million before December 31, 1997,
although there can be no assurance that this will be the case.
Under the section entitled "Manager," page 22, the first and second sentences of
the second paragraph are revised to read:
The Manager has agreed that until December 31, 1997 or when Government
Intermediate reaches net assets of $400 million, whichever occurs first, it will
continue to reimburse fees and/or assume other expenses to the extent the Fund's
expenses relating to Navigator Shares (exclusive of taxes, interest, brokerage
and extraordinary expenses) exceed during any month an annual rate of 0.50% of
the Fund's average daily net assets for such month. If the Fund's assets total
$400 million before December 31, 1997, the Manager has agreed not to increase
this "cap" by more than 10 basis points. The Manager does not anticipate that
the Fund's assets will total $400 million before December 31, 1997, although
there can be no assurance that this will be the case. The Manager has also
agreed that until December 31, 1997 or when Investment Grade reaches net assets
of $100 million, whichever occurs first, it will continue to reimburse fees
and/or assume other expenses to the extent the Fund's expenses relating to
Navigator Shares (exclusive of taxes, interest, brokerage and extraordinary
expenses) exceed during any month an annual rate of 0.50% of the Fund's average
daily net assets for such month.
Under the section entitled "Investment Adviser," page 23, the third sentence of
the first paragraph is revised to read:
For these services, the Manager (not the Fund) pays the Adviser a fee, computed
daily and payable, at an annual rate equal to: 0.20% of Government
Intermediate's average daily net assets, not to exceed the fee paid to the
Manager; 40% of the fee received by the Manager, or 0.24% of Investment Grade's
average daily net assets; and 77% of the fee received by the Manager, or 0.50%
of High Yield's average daily net assets.
November 27, 1996
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THE LEGG MASON INCOME TRUST, INC.:
U.S. GOVERNMENT INTERMEDIATE-TERM PORTFOLIO
INVESTMENT GRADE PORTFOLIO
HIGH YIELD PORTFOLIO
(Primary Shares and Navigator Shares)
AND
U.S. GOVERNMENT MONEY MARKET PORTFOLIO
Supplement to the Statement of Additional Information dated May 1, 1996
The following information is inserted on page 53 in the section entitled
"Management Agreement" (which begins on page 51):
The current expense limits for both Primary Shares and Navigator Shares of
the Government Intermediate and Investment Grade Portfolios have been extended
to December 31, 1997. In addition, if Government Intermediate's assets total
$400 million before December 31, 1997, the Manager has agreed not to increase
this "cap" by more than 10 basis points. The Manager does not anticipate that
Government Intermediate's assets will total $400 million before December 31,
1997, although there can be no assurance that this will be the case.
The following information is inserted in the section entitled "Investment
Advisory Agreement," page 54:
For the Adviser's services to Government Intermediate, the Manager (not the
Fund) pays the Adviser a fee, computed daily and payable monthly, at an annual
rate equal to 0.20% of the Fund's average daily net assets, not to exceed the
fee paid to the Manager.
November 27, 1996
