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SAFECO TAXABLE BOND TRUST
SAFECO MANAGED BOND TRUST
SUPPLEMENT TO THE PROSPECTUS DATED SEPTEMBER 30, 1996
SUPPLEMENT DATED NOVEMBER 25, 1996
The following information supplements the Trusts' No-Load Prospectus:
1. The following information replaces the sentence following the third bullet
under the subheading "The Funds" on page 5:
"Has a minimum initial investment requirement of $1,000 for regular
accounts, $250 for individual retirement accounts ("IRAs") and
accounts established under the Uniform Gift to Minors Act ("UGMA") or
Uniform Transfer to Minors Act ("UTMA")."
2. The following information replaces the first three sentences under the
subheading "Initial Purchases" on page 33:
"MINIMUM INITIAL INVESTMENT $1,000 (IRA, UGMA AND UTMA $250).
Minimum initial investments are negotiable for retirement accounts
other than IRAs.
No minimum initial investment is required to establish the Automatic
Investment Method (except for certain UGMA or UTMA accounts) or
Payroll Deduction Plan."
3. The following information replaces the first sentence under the subheading
"Additional Purchases" on page 33:
"MINIMUM ADDITIONAL INVESTMENT $100 FOR ALL ACCOUNTS, EXCEPT FOR UGMA
OR UTMA AUTOMATIC INVESTMENT METHOD ("AIM") ACCOUNTS OPENED WITH AN
INITIAL INVESTMENT OF $250 OR MORE. THESE ACCOUNTS HAVE A MINIMUM
ADDITIONAL INVESTMENT OF ONLY $50. THERE IS NO MINIMUM INVESTMENT FOR
DIVIDEND REINVESTMENTS."
4. The following information replaces the sentence under the subheading
"Automatic Investment Method" on page 38:
"AIM enables you to make regular monthly investments by authorizing
SAFECO Services to withdraw a specific amount from your bank account
and invest the amount in any Fund. AIM has a minimum of $100 per
withdrawal per Fund for all accounts ( except UGMA and UTMA accounts
which have a lower $50 minimum for additional investments, provided
that the account was opened with an initial investment of at least
$250)."
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5. The following information replaces the first paragraph under the subheading
"High-Yield Bond Fund" on page 32:
"The portfolio managers for the High-Yield Bond Fund are John Stoeser,
Assistant Vice President, SAM, and Robert Kern, a securities analyst
for SAM. Mr. Stoeser has served as a securities analyst and portfolio
manager for SAM since 1992. From 1989 to 1992 he was an
administrative assistant to the President of SAM. Mr. Kern has
served as a securities analyst for SAM since 1994. From 1988 to 1994,
Mr. Kern was engaged by the SAFECO Insurance Companies in the
Controller's Department."
6. The following information replaces the discussion following the first
sentence in Item 1, page 25 under the subheading "Common Investment
Practices":
"A Fund may purchase these short-term securities as a cash management
technique under those circumstances where it has cash to manage for a
short time period, for example, after receiving proceeds from the sale
of securities, interest payments or dividend distributions from
portfolio securities or cash from the sale of Fund shares to
investors. Interest earned from these short-term securities will be
taxable to investors as ordinary income when distributed. With
respect to repurchase agreements, the Managed Bond Fund will invest no
more than 5% of its total assets in repurchase agreements and will not
purchase repurchase agreements which mature in more than seven days."
