SANFORD C. BERNSTEIN INC.
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Supplement dated as of October 2, 2000 filed pursuant to Rule 497(e) of the
Securities and Exchange Act of 1933 to the Regular Prospectus, Fixed Income
Institutional Services Prospectus and Statement of Additional Information, each
dated February 1, 2000 pursuant to Post-Effective Amendment No. 21 (File Nos.
33-21844; 811-5555) that was filed with the Securities and Exchange Commission
on January 28, 2000.
Regular Prospectus
Both paragraphs under the heading "Illiquid Securities" on pages 40-41 of the
Prospectus shall be deleted and replaced in their entirety with the following:
"Securities that are not readily marketable may be illiquid
securities. Each of the Fixed-Income Portfolios may invest as much as
15% of its net assets in illiquid securities.
Examples of illiquid securities include guaranteed investment
contracts ("GICs"), bank investment contracts ("BICs") and certain
private placement securities. A GIC is a contract issued by an
insurance company that guarantees payment of interest and repayment of
principal. A BIC is a contract issued by a bank that guarantees payment
of interest and repayment of principal. Private placement securities
are securities that are exempt from registration with the Securities
and Exchange Commission and may be sold only in privately negotiated
transactions."
Fixed-Income Institutional Services Prospectus
Both paragraphs under the heading "Illiquid Securities" on pages 10-11 of the
Fixed-Income Prospectus shall be replaced in their entirety with the following:
"Securities that are not readily marketable may be illiquid securities.
Each of the Portfolios may invest as much as 15% of its net assets in illiquid
securities.
Examples of illiquid securities include guaranteed investment contracts
("GICs"), bank investment contracts ("BICs") and certain private placement
securities. A GIC is a contract issued by an insurance company that guarantees
payment of interest and repayment of principal. A BIC is a contract issued by a
bank that guarantees payment of interest and repayment of principal. Private
placement securities are securities that are exempt from registration with the
Securities and Exchange Commission and may be sold only in privately negotiated
transactions."
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Statement of Additional Information ("SAI")
The eleventh and twelfth item under the section entitled "Investment
Restrictions of the Fixed-Income Portfolios (other than the Short Duration
Municipal Portfolios')" on page B-24 of the SAI shall be deleted in their
entirety and replaced with the following: "Intentionally left blank."
The last paragraph under the section entitled "Investment Restrictions of the
Fixed-Income Portfolios (other than the Short Duration Municipal Portfolios')"
on page B-25 of the SAI related to non-fundamental policies for the Fixed-Income
Portfolios shall be deleted in its entirety and replaced with the following:
"The following investment limitations are not fundamental, and
may be changed without shareholder approval. None of the Fixed-Income
Portfolios has or currently intends to:
1) Purchase any security if, as a result, the Portfolio would
then have more than 15% of its net assets (at current value) invested
in securities restricted as to disposition under federal securities
laws (excluding restricted securities eligible for resale pursuant to
Rule 144A under the Securities Act of 1933 ("144A securities") that
have been determined to be liquid under procedures adopted by the Board
of Directors based on the trading market for the security) or otherwise
illiquid or not readily marketable, including repurchase agreements
with maturities of more than 7 days; and
2) Invest in a reverse repurchase agreement if the amount
received by the Portfolio through such an agreement, together with all
other borrowings, will exceed 5% of the Portfolio's total assets."
