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
and amended November 27, 1996
Navigator Shares of Legg Mason U.S. Government Intermediate-Term Portfolio
are currently offered for sale only to institutional clients of the Fairfield
Group, Inc. for investment of their own monies and monies for which they act in
a fiduciary capacity, to clients of Legg Mason Trust Company ("Trust Company")
for which Trust Company exercises discretionary investment management
responsibility, to qualified retirement plans managed on a discretionary basis
and having net assets of at least $200 million, to clients of Bartlett & Co.
("Bartlett") who, as of December 19, 1996, were shareholders of Bartlett Short
Term Bond Fund or Bartlett Fixed Income Fund and for whom Bartlett acts as ERISA
fiduciary, and to The Legg Mason Profit Sharing Plan and Trust.
December 19, 1996
