SSgA FUNDS
SUPPLEMENT DATED MAY 2, 2000
SSgA S&P 500 INDEX FUND
PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
DATED DECEMBER 17, 1999
On May 2, 2000, shareholders(1) of the SSgA S&P 500 Index Fund passed several
proposals that require revisions to the Fund's prospectus and SAI. Therefore,
effective June 1, 2000, the following information is hereby added to the Fund's
prospectus and SAI, as noted below:
Prospectus
"Principal Investment Strategies" is amended to add the following information:
Notwithstanding any investment strategy described below or any other applicable
investment restriction, the fund may invest substantially all of its investable
assets in a management investment company with substantially the same investment
objectives, policies and restrictions as the fund.
In this structure, the fund will be a "feeder" fund that invests exclusively in
a corresponding "master" portfolio with identical investment objectives. The
master portfolio may accept investments from multiple feeder funds, which bear
the master portfolio's expenses in proportion to their assets.
Each feeder fund and its master portfolio expect to maintain consistent
investment objectives, but if they do not, the fund will withdraw from the
master portfolio, receiving either cash or securities in exchange for its
interest in the master portfolio. The fund's trustees would then consider
whether the fund should hire its own investment adviser, invest in a different
master portfolio, or take other action.
"Principal Risks of Investing in the Fund" is amended to add the following
information:
Investments in the Other Investment Company Funds. The investments of the fund
may be concentrated in the shares of another investment company with
substantially the same investment objectives, policies and restrictions as the
fund. In that case, the fund's investment performance is directly related to the
investment performance of the investment company shares that it holds (the
"Master Fund"). The ability of the fund to meet its investment objective is
directly related to the ability of the Master Fund to meet its objective. There
can be no assurance that the investment objective of the fund or the Master Fund
will be achieved.
Affiliated Persons. SSgA and the officers and trustees of the fund also serve as
investment advisor, officers and trustees, respectively, of the Master Fund.
Therefore, conflicts may arise as these persons fulfill their fiduciary
responsibilities to the fund and the Master Fund. The Trustees believe they have
structured the fund to avoid these concerns. If a situation arises that may
result in a conflict, the Trustees and officers of the fund will carefully
analyze the situation and take all necessary steps to minimize or eliminate the
potential conflicts.
The "Annual Fund Operating Expenses" portion of the "Fees and Expenses of the
Fund" Section is amended in its entirety as follows:
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(1) A majority of the shareholders of record of the Fund as of the close of
business on March 3, 2000.
<PAGE>
<TABLE>
<CAPTION>
Annual Fund Operating Expenses
(expenses that are deducted from fund assets)
(as a percentage of average daily net assets)
<S> <C>
Management/Custody/Administration Fee(1) .045%
Distribution and Service (12b-1) Fees(1, 2) .090
Other Expenses(1) .057
------
Gross Expenses .192
------
Less Contractual Management Fee Reimbursement (.012)
------
Total Net Annual Fund Operating Expenses(1) .180%
======
</TABLE>
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(1) The Advisor has contractually agreed to reimburse the fund for all expenses
in excess of .18% of average daily net assets on an annual basis until
December 31, 2002. The total annual expenses shown above have been restated
to reflect current fees and the reimbursement.
(2) The ratio includes .04% for 12b-1 Distribution and .05% for 12b-1
Shareholder Servicing Fees
Example
This example is intended to help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
The example assumes that you invest $10,000 in the fund for the time periods
indicated, and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and that the
fund's operating expenses remain the same. Although your actual costs may be
higher or lower, based on these assumptions, your costs would be:
<TABLE>
<CAPTION>
1 year 3 years 5 years 10 years
<S> <C> <C> <C>
$18 $58 $157 $356
=== === ==== ====
</TABLE>
The prospectus is further amended to correct a typographical error. The Average
Annual Total Return for the S&P 500 Index as compared to the SSgA S&P 500 Index
Fund for the period since the Fund's inception to December 31, 1998 should read
21.62% in the individual prospectus. The number appearing in the combined
prospectus is correct.
Statement of Additional Information
"Investment Restrictions" is amended in its entirety as follows:
The fund is subject to the following investment restrictions. Restrictions 1
through 10 are fundamental and restrictions 11 through 13 are nonfundamental.
Unless otherwise noted, these restrictions apply at the time an investment is
made.
1. The fund will not invest 25% or more of the value of its total assets in
securities of companies primarily engaged in any one industry (other than
the US Government, its agencies and instrumentalities). Concentration may
occur as a result of changes in the market value of portfolio securities,
but may not result from investment. Notwithstanding the foregoing general
restrictions, the Fund will concentrate in particular industries to the
extent its underlying index concentrates in those industries.
<PAGE>
2. The fund will not borrow more than 33-1/3% of the value of its total assets
less all liabilities and indebtedness (other than such borrowings).
3. With respect to 75% of its total assets, the fund will not invest in
securities of any one issuer (other than securities issued by the US
Government, its agencies, and instrumentalities), if immediately after and
as a result of such investment (i) the current market value of the Fund's
holdings in the securities of such issuer exceeds 5% of the value of the
Fund's assets or (ii) the Fund holds more than 10% of the voting securities
of the issuer.
4. The fund will not make loans to any person or firm; provided, however, that
the making of a loan shall not include (i) the acquisition for investment
of bonds, debentures, notes or other evidences of indebtedness of any
corporation or government which are publicly distributed or of a type
customarily purchased by institutional investors, or (ii) the entry into
repurchase agreements or reverse repurchase agreements. A Fund may lend its
portfolio securities to broker-dealers or other institutional investors if
the aggregate value of all securities loaned does not exceed 33-1/3% of the
value of the Fund's total assets.
5. The fund will not purchase or sell commodities or commodity futures
contracts except that the Fund may enter into futures contracts and options
thereon to the extent provided in their respective Prospectuses.
6. The fund will not purchase or sell real estate or real estate mortgage
loans; provided, however, that the Fund may invest in securities secured by
real estate or interests therein or issued by companies which invest in
real estate or interests therein.
7. The fund will not engage in the business of underwriting securities issued
by others, except that a Fund will not be deemed to be an underwriter or to
be underwriting on account of the purchase of securities subject to legal
or contractual restrictions on disposition.
8. The fund will not issue senior securities, except as permitted by its
investment objective, policies and restrictions, and except as permitted by
the 1940 Act.
9. The fund will not purchase from or sell portfolio securities to its
officers or directors or other interested persons (as defined in the 1940
Act) of the Fund, including their investment advisers and affiliates,
except as permitted by the 1940 Act and exemptive rules or orders
thereunder.
10. Notwithstanding the investment policies and restrictions of the fund, the
fund may invest all or part of its investable assets in a management
investment company with substantially the same investment objective,
policies and restrictions as the fund.
11. The fund will not invest in securities issued by other investment companies
except in connection with a merger, consolidation, acquisition of assets,
or other reorganization approved by the Fund's shareholders, except that
the Fund may invest in such securities to the extent permitted by the 1940
Act.
12. The fund will not invest more than 15% of its net assets in the aggregate
in illiquid securities or securities that are not readily marketable,
including repurchase agreements and time deposits of more than seven days'
duration.
13. The fund will not make investments for the purpose of gaining control of an
issuer's management.
With respect to the industry concentration outlined in Investment Restriction
No. 1, the Advisor treats US domestic banks and foreign branches of US banks as
a separate industry from foreign banks. To the extent these restrictions reflect
matters of operating policy which may be changed without shareholder vote, these
restrictions may be amended upon approval by the Board of Trustees and notice to
shareholders. If a percentage restriction is adhered to at the time of
investment, a subsequent increase or decrease in a percentage resulting from a
change in the values of assets will not constitute a violation of that
restriction, except as otherwise noted.
<PAGE>
SSgA YIELD PLUS FUND
PROSPECTUS DATED DECEMBER 17, 1999
Effective immediately, the portfolio manager primarily responsible for
investment decisions regarding the SSgA Yield Plus Fund is Ms. Maria Pino, CFA
and Principal of State Street Global Advisors. Ms. Pino managed non-ERISA assets
in a short term (1 to 5 year) fixed income fund and a money market fund at
Partners HealthCare System/Bringham and Women's Hospital since 1993. Prior to
that, she managed fixed income assets for the Commonwealth of Massachusetts
State Employees and Teachers Pension Fund. Ms. Pino has been working in the
investment management field since 1981.
Ms. Pino holds a BS in Accounting from Providence College, an MA in Economics
from Northeastern University, and an MBA from Boston University. Ms. Pino is a
member of the Association for Investment Management and Research and the Boston
Security Analysts Society. There are 10 other portfolio managers who assist in
managing the Fund.
SSgA SPECIAL EQUITY FUND
PROSPECTUS DATED DECEMBER 17, 1999
Effective immediately, the portfolio manager primarily responsible for
investment decisions regarding the SSgA Special Equity Fund is Mr. David Smith,
CFA and Principal of State Street Global Advisors. He joined the firm in 1990.
Previously, Mr. Smith, was the portfolio manager of the SSgA Tuckerman Active
REIT Fund. He also has had extensive experience as an equity analyst in SSgA's
Global Fundamental Strategies group with coverage experience in several
industries including, financial services, REITs, communications, business
services and cable television. He also has experience in managing diversified
equity and fixed income portfolios for both SSgA's Private Asset Management and
Charitable Asset Management clients. Mr. Smith holds a BA in Economics with a
concentration in Financial Markets from the University of Massachusetts/Amherst
and an MS in Finance from the Sawyer School of Management at Suffolk University.
There are four other portfolio managers assisting with the management of the
fund.
SSgA TUCKERMAN ACTIVE REIT FUND
PROSPECTUS DATED DECEMBER 17, 1999
Effective immediately, the portfolio manager primarily responsible for
investment decisions regarding the SSgA Tuckerman Active REIT Fund is Mr. Arthur
Hurley, CFA and Principal of State Street Global Advisors. He joined the firm in
1995. Mr. Hurley has worked on the SSgA Tuckerman Active REIT Fund team since
its inception. Prior to his current responsibilities, Mr. Hurley was the lead
analyst covering the apartment, retail, health care, and self-storage property
types. Prior to joining the REIT team, Mr. Hurley worked for SSgA's Active Fixed
Income Group, where he managed portfolios, traded fixed income instruments, and
conducted credit analyses. Mr. Hurley graduated cum laude from the University of
Massachusetts/ Dartmouth with a BA in Finance. There are two other portfolio
managers who assist in managing the fund.
<PAGE>
SSgA LIFE SOLUTIONS BALANCED FUND
SSgA LIFE SOLUTIONS GROWTH FUND
SSgA LIFE SOLUTIONS INCOME AND GROWTH FUND
PROSPECTUS DATED DECEMBER 17, 1999
Effective immediately, the following table is revised in its entirety as
follows, to reflect that: (1) the range of total international equities in which
the applicable Underlying Funds can invest begins at 0%; and (2) the SSgA IAM
SHARES Fund is hereby added as an Underlying Fund:
<TABLE>
<CAPTION>
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Asset Class/Underlying Fund Income and Balanced Growth
Growth
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<S> <C> <C> <C>
Range of Total Equities 20-60% 40-80% 60-100%
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Weightings in each Underlying Fund
as of August 31, 1999 (%)
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US Equities
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S&P 500 Index Fund 3.51 7.26 10.68
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Matrix Equity Fund 15.63 23.96 32.57
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Small Cap Fund 4.43 6.08 8.25
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Growth and Income Fund 0.00 0.00 0.00
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Special Equity Fund 0.00 0.00 0.00
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Tuckerman Active REIT Fund 0.00 0.00 0.00
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Aggressive Equity Fund 2.24 3.39 4.79
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IAM SHARES Fund(1) -- -- --
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International Equities(2) 0-15% 0-20% 0-25%
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Active International Fund 9.05 13.23 17.74
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Emerging Markets Fund 0.91 1.58 2.17
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International Growth 0.00 0.00 0.00
Opportunities Fund
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Range of Bonds 40-80% 20-60% 0-40%
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Bond Market Fund 52.74 35.52 18.21
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Intermediate Fund 3.33 3.82 2.36
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High Yield Bond Fund 6.56 4.45 2.33
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SSgA Yield Plus Fund 0.00 0.00 0.00
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Range of Short Term Assets 0-20% 0-20% 0-20%
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SSgA Money Market Fund 1.60 0.71 0.90
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SSgA US Government Money Market Fund(3) 0.00 0.00 0.00
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</TABLE>
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(1) Added as an Underlying Fund effective May 2, 2000 with a weighting of 0.00
across each Life Solutions Fund.
(2) International equities are included in the total equity exposure indicated
above and should not exceed the listed percentages.
(3) Information about the SSgA US Government Money Market Fund is contained in
its prospectus, which you may obtain by calling (800) 647-7327 or by
accessing the SSgA Funds online at www.ssgafunds.com.
