SSgA FUNDS
SUPPLEMENT DATED AUGUST 29, 1997
TO PROSPECTUS DATED JUNE 2, 1997
SSgA LIFE SOLUTIONS INCOME AND GROWTH FUND
SSgA LIFE SOLUTIONS BALANCED FUND
SSgA LIFE SOLUTIONS GROWTH FUND
Effective September 2, 1997, the Annual Life Solutions Fund Operating Expense
Table (After Fee Reimbursement) is replaced with the attached Annual Life
Solutions Operating Expense Table (After Fee Reimbursement).
In addition, the following is added as a fifth paragraph to the Distribution,
Services and Shareholder Servicing Arrangements section:
Investment Company has entered into a Service Agreement with State Street
Solutions ("Solutions") to obtain the services described above with respect
to Fund shares held by or for customers. In return for these services,
Investment Company pays Solutions .15% of the average daily value of all
Life Solution Fund shares held by or for customers of Solutions.
<PAGE>
ANNUAL LIFE SOLUTIONS FUND OPERATING EXPENSES
(AFTER FEE REIMBURSEMENT)
The following expense table lists the various costs and expenses that an
investor in the Life Solutions Funds will incur directly or indirectly. In
addition to the expenses identified below, each Life Solutions Fund will
indirectly bear its pro rata share of the expense of the Underlying Funds in
which the Life Solutions Fund invests. The amounts shown are based on estimates
of each Life Solutions Fund's operating expenses for its first full year of
operation. The examples should not be considered a statement of actual past or
future expenses. Actual expenses may be greater or less than those shown. For
additional information, see "General Management."
<TABLE>
<CAPTION>
Shareholder Transaction Expenses:
- --------------------------------
Income and
Growth Balanced Growth
---------- -------- ------
<S> <C> <C> <C>
Sales Charge Imposed on Purchases None None None
Sales Charge Imposed on Reinvested
Dividends None None None
Deferred Sales Charge None None None
Redemption Fees None None None
Exchange Fee None None None
Annual Life Solutions Fund Operating Expenses:
- ---------------------------------------------
(as a percentage of average daily net assets)
Advisory Fees None None None
12b-1 Fees(1),(2) .15% .15% .15%
Other Expenses (After Fee Reimbursement)(1),(3) .30 .30 .30
---- ---- ----
Total Operating Expenses (After Reimbursement)(3) .45% .45% .45%
==== ==== ====
</TABLE>
- --------------
(1) The ratios for 12b-1 Fees and Other Expenses are based upon estimated
amounts for the current year. The Rule 12b-1 Plan permits charges of up to
.25% in distribution and shareholder servicing fees.
(2) Rule 12b-1 Fees may include expenses for shareholder servicing
activities. Investors purchasing Life Solutions Fund shares through a
financial intermediary, such as a bank or an investment advisor, may also
be required to pay additional fees for services provided by the
intermediary. Such investors should contact the intermediary for
information concerning what additional fees, if any, will be charged.
(3) The Advisor has voluntarily agreed to cap Life Solutions Funds'
expenses (except for 12b-1 expenses) at .30%. The Other Expenses and Total
Operating Expenses of the Life Solutions Income and Growth, Balanced and
Growth Funds absent the reimbursement would be .67%, .60% and .41%,
respectively, of average daily net assets on an annual basis. The fee
reimbursement agreement will be in effect for the current fiscal year.
Long-term shareholders of the Life Solutions Funds may pay more in Rule 12b-1
fees than the economic equivalent of the maximum front-end sales charge
permitted by the National Association of Securities Dealers, Inc.
