File No. 033-30394
Under Rule 497(e) of Regulation C
[Logo]
Columbia
CMC HIGH YIELD FUND
Portfolio of CMC Fund Trust
Supplement to the Prospectus dated December 16, 1996
MANAGEMENT OF THE FUND. The section of the Prospectus entitled "MANAGEMENT OF
THE FUND," appearing on page 11, is amended by replacing the first two
paragraphs of that section with the following:
"The Fund is managed under the general supervision of the Trustees of
the Trust. The Trust has contracted with CMC to provide investment advisory
services to the Fund. CMC has acted as an investment adviser since 1969 and
acts as investment manager for approximately $14 billion of assets of other
institutions. CMC is an indirect wholly owned subsidiary of Fleet Financial
Group, Inc., a publicly owned multibank holding company registered under
the Bank Holding Company Act of 1956 with total assets of approximately $85
billion at December 31, 1996. The address of CMC is 1300 S.W. Sixth Avenue,
P.O. Box 1350, Portland, Oregon 97207-1350.
Under the investment contract with the Trust, the Adviser provides
research, advice and supervision with respect to investment matters and
determines what securities to purchase or sell and what portion of the
Fund's assets to invest. The Adviser provides office space and pays all
executive salaries and expenses and ordinary expenses of the Fund."
TRANSFER AGENT. The section of the Prospectus entitled "TRANSFER AGENT,"
appearing on page 12, is amended by replacing the section with the following:
"Columbia Trust Company (the "Trust Company") acts as transfer agent
and dividend paying agent for the Fund. Its address is 1301 S.W. Fifth
Avenue, P.O. Box 1350, Portland, Oregon 97207-1350. The Trust Company is an
indirect wholly owned subsidiary of Fleet Financial Group, Inc."
December 10, 1997
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[Logo]
Columbia
CMC HIGH YIELD FUND
Portfolio of CMC Fund Trust
Supplement to the Statement of Additional
Information dated December 16, 1996
MANAGEMENT. The section of the Statement of Additional Information entitled
"MANAGEMENT," appearing on page 2 is amended by replacing the first 12
paragraphs with the following:
"The trustees and officers of the Trust are listed below, together
with their principal business occupations. All principal business positions
have been held for more than five years, except as follows: Columbia Small
Cap Fund, Inc. since August 1996; Columbia Real Estate Equity Fund, Inc.
since April 1994; Columbia High Yield Fund, Inc. since July 1993; and
except as otherwise indicated. The term "Columbia Funds" refers to Columbia
High Yield Fund, Inc., Columbia Balanced Fund, Inc., Columbia Common Stock
Fund, Inc., Columbia International Stock Fund, Inc., Columbia Municipal
Bond Fund, Inc., Columbia Real Estate Equity Fund, Inc., Columbia U.S.
Government Securities Fund, Inc., Columbia Special Fund, Inc., Columbia
Growth Fund, Inc., Columbia Daily Income Company, Columbia Small Cap Fund,
Inc., and Columbia Fixed Income Securities Fund, Inc.
J. JERRY INSKEEP, JR.,* Chairman, President, Secretary, and Trustee of the
Trust; Chairman, President, Secretary, and Director of each of the Columbia
Funds; Consultant for Fleet Financial Group, Inc. (since December 1997);
formerly Chairman and a Director of Columbia Management Co. (the
"Adviser"), the investment adviser of the Fund, Columbia Funds Management
Company ("CFMC"), Columbia Trust Company (the "Trust Company"); and
formerly a Director of Columbia Financial Center ("Columbia Financial").
Mr. Inskeep's business address is 1300 S.W. Sixth Avenue, P.O. Box 1350,
Portland, Oregon 97207.
RICHARD L. WOOLWORTH, Trustee of the Trust (since July 1993); Director of
each of the Columbia Funds; Chairman and Chief Executive Officer of Blue
Cross and Blue Shield of Oregon; and Chairman and Chief Executive Officer
of the Regence Group, health insurers. Mr. Woolworth's address is 100 S. W.
Market Street, Portland, Oregon 97201.
THOMAS R. MACKENZIE, Trustee of the Trust (since December 1997); Director
of each of the Columbia Funds; and Chairman of the Board of Directors of
Group Mackenzie (architecture, planning, interior design, engineering). Mr.
Mackenzie's address is 0690 S.W. Bancroft Street, Portland, Oregon 97201.
<PAGE>
JAMES C. GEORGE, Trustee of the Trust (since December 1997) and Director of
each of the Columbia Funds (since June 1994). Mr. George, former investment
manager of the Oregon State Treasury (1962-1992), is an investment
consultant. Mr. George's business address is 1001 S.W. Fifth Avenue,
Portland, Oregon 97204.
*Mr. Inskeep is an "interested person" as defined by the Investment
Company Act of 1940 (the "1940 Act") and receives no trustee fees or
salaries from the Fund."
INVESTMENT ADVISORY AND OTHER FEES PAID TO AFFILIATES. The section of the
Statement of Additional Information entitled "INVESTMENT ADVISORY AND OTHER FEES
PAID TO AFFILIATES," appearing on page 3 is amended by replacing the sixth and
seventh paragraphs with the following:
"The Adviser and the Trust Company are indirect wholly owned
subsidiaries of Fleet Financial Group, Inc. ("Fleet"). Fleet and its
affiliates provide a wide range of banking, financial and investment
products and services to individuals and businesses. Their principal
activities include customer and commercial banking, mortgage lending and
servicing, trust administration, investment management, retirement plan
services, brokerage and clearing services, securities underwriting, private
and corporate financing and advisory activities, and insurance services.
The Adviser acts as an investment manager for approximately $14
billion of assets. The Fund is intended to provide investment vehicles for
certain client accounts managed by the Adviser. An independent fiduciary of
those client accounts, after careful review of the Fund's Prospectus,
Statement of Additional Information, and fees arrangement, approves the
investment in the Fund. The independent fiduciary then authorizes the
Adviser to purchase and sell shares of the Fund at its discretion for the
client's portfolio, subject to any limitations imposed by the
authorization.
The Trust Company acts as transfer agent and dividend crediting agent
for the Fund. Its address is 1301 SW Fifth Avenue, P.O. Box 1350, Portland,
Oregon 97207. It issues certificates for shares of the Fund, if requested,
and records and disburses dividends for the Fund. The Trust pays the Trust
Company a per account fee of $1 per month for each shareholder account with
the Fund existing at any time during the month, with a minimum aggregate
fee of $1,500 per month. In addition, the Trust pays the Trust Company for
extra administrative services performed at cost in accordance with a
schedule set forth in the agreement between the Trust Company and the Trust
and reimburses the Trust Company for certain out-of-pocket expenses
incurred in carrying out its duties under that agreement. The Trust paid
$18,000 to the Trust Company for services performed for fiscal 1997 under
the transfer agent agreement relating to the Fund."
December 10, 1997
2
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[Logo]
Columbia
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
Supplement to the Prospectus dated December 16, 1996
MANAGEMENT OF THE FUNDS. The section of the Prospectus entitled "MANAGEMENT OF
THE FUNDS," appearing on page 13, is amended by replacing the first two
paragraphs of that section with the following:
"Each Fund is managed under the general supervision of the Trustees of
the Trust. The Trust has contracted with CMC to provide investment advisory
services to the Funds. CMC has acted as an investment adviser since 1969
and acts as investment manager for approximately $14 billion of assets of
other institutions. CMC is an indirect wholly owned subsidiary of Fleet
Financial Group, Inc., a publicly owned multibank holding company
registered under the Bank Holding Company Act of 1956 with total assets of
approximately $85 billion at December 31, 1996. The address of CMC is 1300
S.W. Sixth Avenue, P.O. Box 1350, Portland, Oregon 97207-1350.
Under the investment contract with the Trust, the Adviser provides
research, advice and supervision with respect to investment matters and
determines what securities to purchase or sell and what portion of the
Fund's assets to invest. The Adviser provides office space and pays all
executive salaries and expenses and ordinary expenses of each Fund."
TRANSFER AGENT. The section of the Prospectus entitled "TRANSFER AGENT,"
appearing on page 14, is amended by replacing the section with the following:
"Columbia Trust Company (the "Trust Company") acts as transfer agent
and dividend paying agent for the Funds. Its address is 1301 S.W. Fifth
Avenue, P.O. Box 1350, Portland, Oregon 97207-1350. The Trust Company is an
indirect wholly owned subsidiary of Fleet Financial Group, Inc."
December 10, 1997
<PAGE>
[Logo]
Columbia
CMC SMALL CAP FUND
CMC INTERNATIONAL STOCK FUND
Portfolios of CMC Fund Trust
Supplement to the Statement of Additional
Information dated December 16, 1996
MANAGEMENT. The section of the Statement of Additional Information entitled
"MANAGEMENT," appearing on page 2 is amended by replacing the first 12
paragraphs with the following:
"The trustees and officers of the Trust are listed below, together
with their principal business occupations. All principal business positions
have been held for more than five years, except as follows: Columbia Small
Cap Fund, Inc. since August 1996; Columbia Real Estate Equity Fund, Inc.
since April 1994; Columbia High Yield Fund, Inc. since July 1993; and
except as otherwise indicated. The term "Columbia Funds" refers to Columbia
High Yield Fund, Inc., Columbia Balanced Fund, Inc., Columbia Common Stock
Fund, Inc., Columbia International Stock Fund, Inc., Columbia Municipal
Bond Fund, Inc., Columbia Real Estate Equity Fund, Inc., Columbia U.S.
Government Securities Fund, Inc., Columbia Special Fund, Inc., Columbia
Growth Fund, Inc., Columbia Daily Income Company, Columbia Small Cap Fund,
Inc., and Columbia Fixed Income Securities Fund, Inc.
J. JERRY INSKEEP, JR.,* Chairman, President, Secretary, and Trustee of the
Trust; Chairman, President, Secretary, and Director of each of the Columbia
Funds; Consultant for Fleet Financial Group, Inc. (since December 1997);
formerly Chairman and a Director of Columbia Management Co. (the
"Adviser"), the investment adviser of the Funds, Columbia Funds Management
Company ("CFMC"), Columbia Trust Company (the "Trust Company"); and
formerly a Director of Columbia Financial Center ("Columbia Financial").
Mr. Inskeep's business address is 1300 S.W. Sixth Avenue, P.O. Box 1350,
Portland, Oregon 97207.
RICHARD L. WOOLWORTH, Trustee of the Trust (since July 1993); Director of
each of the Columbia Funds; Chairman and Chief Executive Officer of Blue
Cross and Blue Shield of Oregon; and Chairman and Chief Executive Officer
of the Regence Group, health insurers. Mr. Woolworth's address is 100 S. W.
Market Street, Portland, Oregon 97201.
THOMAS R. MACKENZIE, Trustee of the Trust (since December 1997); Director
of each of the Columbia Funds; and Chairman of the Board of Directors of
Group Mackenzie (architecture, planning, interior design, engineering). Mr.
Mackenzie's address is 0690 S.W. Bancroft Street, Portland, Oregon 97201.
<PAGE>
JAMES C. GEORGE, Trustee of the Trust (since December 1997) and Director of
each of the Columbia Funds (since June 1994). Mr. George, former investment
manager of the Oregon State Treasury (1962-1992), is an investment
consultant. Mr. George's business address is 1001 S.W. Fifth Avenue,
Portland, Oregon 97204.
*Mr. Inskeep is an "interested person" as defined by the Investment
Company Act of 1940 (the "1940 Act") and receives no trustee fees or
salaries from the Fund."
INVESTMENT ADVISORY AND OTHER FEES PAID TO AFFILIATES. The sixth and seventh
paragraph of the Statement of Additional Information entitled "INVESTMENT
ADVISORY AND OTHER FEES PAID TO AFFILIATES," appearing on page 4 of the
Statement of Additional Information is amended by replacing those paragraphs
with the following:
"The Adviser and the Trust Company are indirect wholly owned
subsidiaries of Fleet Financial Group, Inc. ("Fleet"). Fleet and its
affiliates provide a wide range of banking, financial and investment
products and services to individuals and businesses. Their principal
activities include customer and commercial banking, mortgage lending and
servicing, trust administration, investment management, retirement plan
services, brokerage and clearing services, securities underwriting, private
and corporate financing and advisory activities, and insurance services.
The Adviser acts as an investment manager for approximately $14
billion of assets. The Funds are intended to provide investment vehicles
for certain client accounts managed by the Adviser. An independent
fiduciary of those client accounts, after careful review of the Funds'
Prospectus, Statement of Additional Information, and fees arrangement,
approves the investment in the Funds. The independent fiduciary then
authorizes the Adviser to purchase and sell shares of the Fund at its
discretion for the client's portfolio, subject to any limitations imposed
by the authorization.
The Trust Company acts as transfer agent and dividend crediting agent
for the Funds. Its address is 1301 SW Fifth Avenue, P.O. Box 1350,
Portland, Oregon 97207. It issues certificates for shares of the Funds, if
requested, and records and disburses dividends for the Funds. The Trust
pays the Trust Company a per account fee of $1 per month for each
shareholder account with the Fund existing at any time during the month,
with a minimum aggregate fee of $1,500 per month. In addition, the Trust
pays the Trust Company for extra administrative services performed at cost
in accordance with a schedule set forth in the agreement between the Trust
Company and the Trust and reimburses the Trust Company for certain
out-of-pocket expenses incurred in carrying out its duties under that
agreement. The Trust paid $18,000 and $18,000 to the Trust Company for
services performed for fiscal 1997 under the transfer agent agreement
relating to the Small Cap Fund and the International Stock Fund,
respectively."
December 10, 1997
2
