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STEPSTONE FUNDS
INVESTMENT CLASS
CALIFORNIA INTERMEDIATE TAX-FREE BOND FUND
LIMITED MATURITY GOVERNMENT FUND
INTERMEDIATE-TERM BOND FUND
GOVERNMENT SECURITIES FUND
BALANCED FUND
VALUE MOMENTUM FUND
GROWTH EQUITY FUND
EMERGING GROWTH FUND
SUPPLEMENT DATED JANUARY 1, 1997 TO THE PROSPECTUSES DATED MAY 28, 1996
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED
IN THE PROSPECTUSES AND SHOULD BE RETAINED AND READ IN CONJUNCTION WITH SUCH
PROSPECTUS.
The Board of Trustees of Stepstone Funds has determined that it is in the best
interests of the Limited Maturity Government Fund (the "Fund") and its
shareholders that the Fund be closed to new investors and thereafter be
liquidated. Accordingly, effective January 10, 1997, the Fund will be closed to
new investors, and effective February 26, 1997, the Fund will liquidate and
distribute the net liquidation proceeds to shareholders. All distributions made
by the Fund that are currently being reinvested in Fund shares will continue to
be reinvested in Fund shares until the Fund is liquidated.
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Effective January 1, 1997, the WAIVER OF SALES LOAD section in the prospectuses
should be replaced with the following:
WAIVER OF SALES LOAD. No sales charge is imposed on Investment Class
shares of the Fund; (i) issued in plans of reorganization, such as
mergers, asset acquisitions and exchange offers, to which the Trust is a
party; (ii) sold to dealers or brokers that have a sales agreement with
the Distributor, for their own account or for retirement plans for their
employees or sold to employees (or their spouses) of dealers or brokers
that certify to the Distributor at the time of purchase that such
purchase is for their own account (or for the benefit of such employees'
minor children); (iii) in aggregate purchases of $1 million or more by
tax-exempt organizations enumerated in Section 501(c) of the Code, or
employee benefit plans created under Sections 401 403(b) or 457 of the
Code; (iv) sold to employees and families of the Advisor and its
affiliates; (v) sold to fiduciary accounts of the Advisor and its
affiliates; (vi) purchased with proceeds from the recent redemption of
shares of a mutual fund with similar investment objectives and policies
for which a sales charge was paid; (vii) purchased by investment
advisors or financial planners regulated by a federal or state
governmental authority who are purchasing shares for their own account
or for an account for which they are authorized to
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make investment decisions (i.e., a discretionary account) and who charge
a management, consulting or other fee for their services, and clients of
such investment advisors or financial planners who place trades for
their own accounts if the accounts are linked to the master account of
such investment advisor or financial planner on the books and records of
a broker or agent; and (viii) sold to purchasers of Investment Class
Shares of the Growth Equity Fund that are sponsors of other investment
companies that are unit investment trusts for deposit by such sponsors
into such unit investment trusts, and to purchases of Investment Class
Shares of the Growth Equity Fund that are holders of such unit
investment trusts that invest distributions from such investment trusts
in Investment Class Shares of the Growth Equity Fund.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
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STEPSTONE FUNDS
INSTITUTIONAL CLASS
LIMITED MATURITY GOVERNMENT FUND
SUPPLEMENT DATED JANUARY 1, 1997 TO THE PROSPECTUS DATED MAY 28, 1996
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED
IN THE PROSPECTUSES AND SHOULD BE RETAINED AND READ IN CONJUNCTION WITH SUCH
PROSPECTUS.
The Board of Trustees of Stepstone Funds has determined that it is in the best
interests of the Limited Maturity Government Fund (the "Fund") and its
shareholders that the Fund be closed to new investors and thereafter be
liquidated. Accordingly, effective January 10, 1997, the Fund will be closed to
new investors, and effective February 26, 1997, the Fund will liquidate and
distribute the net liquidation proceeds to shareholders. All distributions made
by the Fund that are currently being reinvested in Fund shares will continue to
be reinvested in Fund shares until the Fund is liquidated.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
