<PAGE>
2002 TARGET TERM TRUST INC.
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED APRIL 6, 1995
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY INFORMATION
CONTAINED IN THE STATEMENT OF ADDITIONAL INFORMATION:
1. FUNDAMENTAL INVESTMENT RESTRICTIONS. At the annual meeting of shareholders
scheduled for April 11, 1996 (the 'Annual Meeting'), shareholders of 2002 Target
Term Trust Inc. ('Trust') will be asked to approve changes to the Trust's
fundamental investment restrictions. If approved, the following investment
restrictions will supersede and replace the restrictions listed in the section
in the Trust's Statement of Additional Information entitled 'Investment
Limitations':
(1) The Trust will not purchase securities of any one issuer if, as a
result, more than 5% of the Trust's total assets would be invested in
securities of that issuer or the Trust would own or hold more than 10%
of the outstanding voting securities of that issuer, except that up to
25% of the Trust's total assets may be invested without regard to this
limitation, and except that this limitation does not apply to
securities issued or guaranteed by the U.S. government, its agencies
and instrumentalities or to securities issued by other investment
companies.
The following interpretations apply to, but are not a part of, this
fundamental limitation:
Each state (including the District of Columbia and Puerto Rico),
territory and possession of the United States, each political
subdivision, agency, instrumentality and authority thereof, and each
multi-state agency of which a state is a member is a separate 'issuer.'
When the assets and revenues of an agency, authority, instrumentality or
other political subdivision are separate from the government creating
the subdivision and the security is backed only by the assets and
revenues of the subdivision, such subdivision would be deemed to be the
sole issuer. Similarly, in the case of an Industrial Development Bond or
Private Activity Bond, if that bond is backed only by the assets and
revenues of the non-governmental user, then that non-governmental user
would be deemed to be the sole issuer. However, if the creating
government or another entity guarantees a security, then to the extent
that the value of all securities issued or guaranteed by that government
or entity and owned by the Trust exceeds 10% of the Trust's total
assets, the guarantee would be considered a separate security and would
be treated as issued by that government or entity.
Mortgage- and asset-backed securities will not be considered to have
been issued by the same issuer by reason of the securities having the
same sponsor, and mortgage- and asset-backed securities issued by a
finance or other special purpose subsidiary that are not guaranteed by
the parent company will be considered to be issued by a separate issuer
from the parent company.
(2) The Trust will not purchase any security if, as a result of that
purchase, 25% or more of the Trust's total assets would be invested in
securities of issuers having their principal business activities in the
same industry, except that this limitation does not apply to securities
issued or guaranteed by the U.S. government, its agencies or
instrumentalities or to municipal securities, and except that the
Trust, under normal circumstances, will invest 25% or more of its total
assets in mortgage- and asset-backed securities, which (whether or not
issued or guaranteed by an agency or instrumentality of the U.S.
government) shall be considered a single industry for purposes of this
limitation.
(3) The Trust will not issue senior securities or borrow money, except as
permitted under the 1940 Act and then not in excess of 33 1/3% of the
Trust's total assets (including the amount of the senior securities
issued but reduced by any liabilities not constituting senior
securities) at the time of the issuance or borrowing, except that the
Trust may borrow up to an additional 5% of its total assets (not
including the amount borrowed) for temporary or emergency purposes.
(4) The Trust will not make loans, except through loans of portfolio
securities or through repurchase agreements, provided that for purposes
of this restriction, the acquisition of bonds, debentures, other debt
securities or instruments, or participations or other interests therein
and investments in government obligations, commercial paper,
certificates of deposit, bankers' acceptances or similar instruments
will not be considered the making of a loan.
<PAGE>
(5) The Trust will not engage in the business of underwriting securities of
other issuers, except to the extent that the Trust might be considered
an underwriter under the federal securities laws in connection with its
disposition of portfolio securities.
(6) The Trust will not purchase or sell real estate, except that
investments in securities of issuers that invest in real estate and
investments in mortgage-backed securities, mortgage participations or
other instruments supported by interests in real estate are not subject
to this limitation, and except that the Trust may exercise rights under
agreements relating to such securities, including the right to enforce
security interests and to hold real estate acquired by reason of such
enforcement until that real estate can be liquidated in an orderly
manner.
(7) The Trust will not purchase or sell physical commodities unless
acquired as a result of owning securities or other instruments, but the
Trust may purchase, sell or enter into financial options and futures,
forward and spot currency contracts, swap transactions and other
financial contracts or derivative instruments.
2. NON-FUNDAMENTAL INVESTMENT RESTRICTIONS. If the foregoing fundamental
restrictions are approved by the Trust's shareholders, the Trust would become
subject to the non-fundamental investment restrictions listed below. These
non-fundamental restrictions would replace certain of the Trust's current
fundamental restrictions and would be in addition to the non-fundamental
policies and restrictions already described in the Statement of Additional
Information.
The following investment restrictions are not fundamental and may be
changed by the Trust's Board of Directors without shareholder approval.
The Fund will not:
o purchase securities on margin, except for short-term credit
necessary for clearance of portfolio transactions and except that
the Trust may make margin deposits in connection with its use of
financial options and futures, forward and spot currency contracts,
swap transactions and other financial contracts or derivative
instruments.
o engage in short sales of securities or maintain a short position,
except that the Trust may (a) sell short 'against the box' and (b)
maintain short positions in connection with its use of financial
options and futures, forward and spot currency contracts, swap
transactions and other financial contracts or derivative
instruments.
Dated: March 1, 1996
2
<PAGE>
ALL-AMERICAN TERM TRUST INC.
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED JUNE 1, 1995
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY INFORMATION
CONTAINED IN THE STATEMENT OF ADDITIONAL INFORMATION:
1. FUNDAMENTAL INVESTMENT RESTRICTIONS. At a special meeting of shareholders
scheduled for April 11, 1996 (the 'Special Meeting'), shareholders of
All-American Term Trust Inc. ('Trust') will be asked to approve changes to the
Trust's fundamental investment restrictions. If approved, the following
investment restrictions will supersede and replace the restrictions listed in
the section in the Trust's Statement of Additional Information entitled
'Investment Limitations':
The Trust will not:
(1) purchase securities of any one issuer if, as a result, more than
5% of the Trust's total assets would be invested in securities of
that issuer or the Trust would own or hold more than 10% of the
outstanding voting securities of that issuer, except that up to
25% of the Trust's total assets may be invested without regard to
this limitation, and except that this limitation does not apply to
securities issued or guaranteed by the U.S. government, its
agencies and instrumentalities or to securities issued by other
investment companies.
The following interpretations apply to, but are not a part of,
this fundamental restriction:
Each state (including the District of Columbia and Puerto Rico),
territory and possession of the United States, each political
subdivision, agency, instrumentality and authority thereof, and
each multi-state agency of which a state is a member is a separate
'issuer.' When the assets and revenues of an agency, authority,
instrumentality or other political subdivision are separate from
the government creating the subdivision and the security is backed
only by the assets and revenues of the sub-division, such
subdivision would be deemed to be the sole issuer. Similarly, in
the case of an Industrial Development Bond or Private Activity
Bond, if that bond is backed only by the assets and revenues of
the non-governmental user, then that non-governmental user would
be deemed to be the sole issuer. However, if the creating
government or another entity guarantees a security, then to the
extent that the value of all securities issued or guaranteed by
that government or entity and owned by the Trust exceeds 10% of
the Trust's total assets, the guarantee would be considered a
separate security and would be treated as issued by that
government or entity.
Mortgage- and asset-backed securities will not be considered to
have been issued by the same issuer by reason of the securities
having the same sponsor, and mortgage- and asset-backed securities
issued by a finance or other special purpose subsidiary that are
not guaranteed by the parent company will be considered to be
issued by a separate issuer from the parent company.
(2) purchase any security if, as a result of that purchase, 25% or
more of the Trust's total assets would be invested in securities
of issuers having their principal business activities in the same
industry, except that this limitation does not apply to securities
issued or guaranteed by the U.S. government, its agencies or
instrumentalities or to municipal securities.
(3) issue senior securities or borrow money, except as permitted under
the 1940 Act and then not in excess of 33 1/3% of the Trust's
total assets (including the amount of the senior securities issued
but reduced by any liabilities not constituting senior securities)
at the time of the issuance or borrowing, except that the Trust
may borrow up to an additional 5% of its total assets (not
including the amount borrowed) for temporary or emergency
purposes.
(4) make loans, except through loans of portfolio securities or
through repurchase agreements, provided that for purposes of this
restriction, the acquisition of bonds, debentures, other debt
securities or instruments, or participations or other interests
therein and investments in government obligations, commercial
paper, certificates of deposit, bankers' acceptances or similar
instruments will not be considered the making of a loan.
<PAGE>
(5) engage in the business of underwriting securities of other
issuers, except to the extent that the Trust might be considered
an underwriter under the federal securities laws in connection
with its disposition of portfolio securities.
(6) purchase or sell real estate, except that investments in
securities of issuers that invest in real estate and investments
in mortgage-backed securities, mortgage participations or other
instruments supported by interests in real estate are not subject
to this limitation, and except that the Trust may exercise rights
under agreements relating to such securities, including the right
to enforce security interests and to hold real estate acquired by
reason of such enforcement until that real estate can be
liquidated in an orderly manner.
(7) purchase or sell physical commodities unless acquired as a result
of owning securities or other instruments, but the Trust may
purchase, sell or enter into financial options and futures,
forward and spot currency contracts, swap transactions and other
financial contracts or derivative instruments.
2. NON-FUNDAMENTAL INVESTMENT RESTRICTIONS. If the foregoing fundamental
restrictions are approved by the Trust's shareholders, the Trust would become
subject to the non-fundamental investment restrictions listed below. These
non-fundamental restrictions would replace certain of the Trust's current
fundamental restrictions and would be in addition to the non-fundamental
policies and restrictions already described in the Statement of Additional
Information.
The following investment restrictions are not fundamental and may be
changed by the Trust's Board of Directors without shareholder approval.
The Fund will not:
o purchase securities on margin, except for short-term credit
necessary for clearance of portfolio transactions and except that
the Trust may make margin deposits in connection with its use of
financial options and futures, forward and spot currency contracts,
swap transactions and other financial contracts or derivative
instruments.
o engage in short sales of securities or maintain a short position,
except that the Trust may (a) sell short 'against the box' and (b)
maintain short positions in connection with its use of financial
options and futures, forward and spot currency contracts, swap
transactions and other financial contracts or derivative
instruments.
Dated: March 1, 1996
2
<PAGE>
MANAGED HIGH YIELD FUND INC.
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED DECEMBER 1, 1995
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY INFORMATION
CONTAINED IN THE STATEMENT OF ADDITIONAL INFORMATION.
1. FUNDAMENTAL INVESTMENT RESTRICTIONS. At a special meeting of shareholders
scheduled for April 11, 1996 (the 'Special Meeting'), shareholders of Managed
High Yield Fund Inc. ('Fund') will be asked to approve changes to the Fund's
fundamental investment restrictions. If approved, the following investment
restrictions will supersede and replace the restrictions listed in the section
in the Fund's Statement of Additional Information entitled 'Investment
Limitations':
The Fund will not:
(1) purchase securities of any one issuer if, as a result, more than
5% of the Fund's total assets would be invested in securities of
that issuer or the Fund would own or hold more than 10% of the
outstanding voting securities of that issuer, except that up to
25% of the Fund's total assets may be invested without regard to
this limitation, and except that this limitation does not apply to
securities issued or guaranteed by the U.S. government, its
agencies and instrumentalities or to securities issued by other
investment companies.
(2) purchase any security if, as a result of that purchase, 25% or
more of the Fund's total assets would be invested in securities of
issuers having their principal business activities in the same
industry, except that this limitation does not apply to securities
issued or guaranteed by the U.S. government, its agencies or
instrumentalities or to municipal securities.
(3) issue senior securities or borrow money, except as permitted under
the 1940 Act and then not in excess of 33 1/3% of the Fund's total
assets (including the amount of the senior securities issued but
reduced by any liabilities not constituting senior securities) at
the time of the issuance or borrowing, except that the Fund may
borrow up to an additional 5% of its total assets (not including
the amount borrowed) for temporary or emergency purposes.
(4) make loans, except through loans of portfolio securities or
through repurchase agreements, provided that for purposes of this
restriction, the acquisition of bonds, debentures, other debt
securities or instruments, or participations or other interests
therein and investments in government obligations, commercial
paper, certificates of deposit, bankers' acceptances or similar
instruments will not be considered the making of a loan.
(5) engage in the business of underwriting securities of other
issuers, except to the extent that the Fund might be considered an
underwriter under the federal securities laws in connection with
its disposition of portfolio securities.
(6) purchase or sell real estate, except that investments in
securities of issuers that invest in real estate and investments
in mortgage-backed securities, mortgage participations or other
instruments supported by interests in real estate are not subject
to this limitation, and except that the Fund may exercise rights
under agreements relating to such securities, including the right
to enforce security interests and to hold real estate acquired by
reason of such enforcement until that real estate can be
liquidated in an orderly manner.
(7) purchase or sell physical commodities unless acquired as a result
of owning securities or other instruments, but the Fund may
purchase, sell or enter into financial options and futures,
forward and spot currency contracts, swap transactions and other
financial contracts or derivative instruments.
2. NON-FUNDAMENTAL INVESTMENT RESTRICTIONS. If the foregoing fundamental
restrictions are approved by the Fund's shareholders, the Fund would become
subject to the non-fundamental investment restrictions listed below. These
non-fundamental restrictions would replace certain of the Fund's current
fundamental restrictions and would be in addition to the non-fundamental
policies and restrictions already described in the Statement of Additional
Information.
<PAGE>
The following investment restrictions are not fundamental and may be
changed by the Fund's Board of Directors without shareholder approval.
The Fund will not:
o mortgage, pledge or hypothecate any assets except in connection with
permitted borrowings or the issuance of senior securities.
o purchase securities on margin, except for short-term credit
necessary for clearance of portfolio transactions and except that
the Fund may make margin deposits in connection with its use of
financial options and futures, forward and spot currency contracts,
swap transactions and other financial contracts or derivative
instruments.
o engage in short sales of securities or maintain a short position,
except that the Fund may (a) sell short 'against the box' and (b)
maintain short positions in connection with its use of financial
options and futures, forward and spot currency contracts, swap
transactions and other financial contracts or derivative
instruments.
o invest in oil, gas or mineral exploration or development programs or
leases, except that investments in securities of issuers that invest
in such programs or leases and investments in asset-backed
securities supported by receivables generated from such programs or
leases are not subject to this prohibition.
Dated: March 1, 1996
2
<PAGE>
STRATEGIC GLOBAL INCOME FUND, INC.
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED MARCH 31, 1995
THE FOLLOWING INFORMATION SUPPLEMENTS AND SUPERSEDES ANY CONTRARY INFORMATION
CONTAINED IN THE STATEMENT OF ADDITIONAL INFORMATION:
1. FUNDAMENTAL INVESTMENT RESTRICTIONS. At the annual meeting of shareholders
scheduled for April 11, 1996 (the 'Annual Meeting'), shareholders of Strategic
Global Income Fund, Inc. ('Fund') will be asked to approve changes to the Fund's
fundamental investment restrictions. If approved, the following investment
restrictions will supersede and replace the restrictions listed in the section
in the Fund's Statement of Additional Information entitled 'Investment
Limitations':
The Fund will not:
(1) purchase any security if, as a result of that purchase, 25% or
more of the Fund's total assets would be invested in securities of
issuers having their principal business activities in the same
industry, except that this limitation does not apply to securities
issued or guaranteed by the U.S. government, its agencies or
instrumentalities or to municipal securities.
(2) issue senior securities or borrow money, except as permitted under
the 1940 Act and then not in excess of 33 1/3% of the Fund's total
assets (including the amount of the senior securities issued but
reduced by any liabilities not constituting senior securities) at
the time of the issuance or borrowing, except that the Fund may
borrow up to an additional 5% of its total assets (not including
the amount borrowed) for temporary or emergency purposes.
(3) make loans, except through loans of portfolio securities or
through repurchase agreements, provided that for purposes of this
restriction, the acquisition of bonds, debentures, other debt
securities or instruments, or participations or other interests
therein and investments in government obligations, commercial
paper, certificates of deposit, bankers' acceptances or similar
instruments will not be considered the making of a loan.
(4) engage in the business of underwriting securities of other
issuers, except to the extent that the Fund might be considered an
underwriter under the federal securities laws in connection with
its disposition of portfolio securities.
(5) purchase or sell real estate, except that investments in
securities of issuers that invest in real estate and investments
in mortgage-backed securities, mortgage participations or other
instruments supported by interests in real estate are not subject
to this limitation, and except that the Fund may exercise rights
under agreements relating to such securities, including the right
to enforce security interests and to hold real estate acquired by
reason of such enforcement until that real estate can be
liquidated in an orderly manner.
(6) purchase or sell physical commodities unless acquired as a result
of owning securities or other instruments, but the Fund may
purchase, sell or enter into financial options and futures,
forward and spot currency contracts, swap transactions and other
financial contracts or derivative instruments.
2. NON-FUNDAMENTAL INVESTMENT RESTRICTIONS. If the foregoing fundamental
restrictions are approved by the Fund's shareholders, the Fund would become
subject to the non-fundamental investment restrictions listed below. These
non-fundamental restrictions would replace certain of the Fund's current
fundamental restrictions and would be in addition to the non-fundamental
policies and restrictions already described in the Statement of Additional
Information.
The following investment restrictions are not fundamental and may be
changed by the Fund's Board of Directors without shareholder approval.
The Fund will not:
o purchase securities on margin, except for short-term credit
necessary for clearance of portfolio transactions and except that
the Fund may make margin deposits in connection with its use of
<PAGE>
financial options and futures, forward and spot currency contracts,
swap transactions and other financial contracts or derivative
instruments.
o engage in short sales of securities or maintain a short position,
except that the Fund may (a) sell short 'against the box' and (b)
maintain short positions in connection with its use of financial
options and futures, forward and spot currency contracts, swap
transactions and other financial contracts or derivative
instruments.
o invest in oil, gas or mineral exploration or development programs or
leases, except that investments in securities of issuers that invest
in such programs or leases and investments in asset-backed
securities supported by receivables generated from such programs or
leases are not subject to this prohibition.
Dated: March 1, 1996
2
