<PAGE> 1
SAFECO Institutional Series Trust - Fixed-Income Portfolio
SUPPLEMENT TO THE PROSPECTUS DATED APRIL 29, 1996
SUPPLEMENT DATED MAY 31, 1996
The last sentence in the third full paragraph under the heading "Information
About Share Ownership And Companies That Provide Services To The Trust" on page
16 is changed to read as follows:
SAFECO Services receives a fee from the Portfolio for every shareholder account
held in the Portfolio.
<PAGE> 2
SAFECO Institutional Series Trust
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED APRIL 29, 1996
SUPPLEMENT DATED MAY 31, 1996
The second sentence in the last paragraph on page 15, the first full sentence on
the top of page 16, and the table on page 16 are changed to read as follows:
SAFECO Services provides, or through subcontracts makes provision for, all
required transfer agent activity, including maintenance of records of each
Fund's shareholders, records of transactions involving each Fund's shares, and
the compilation, distribution, or reinvestment of income dividends or capital
gains distributions. SAFECO Services is paid a fee for these services equal to
$32.00 per shareholder account, but not to exceed .30% of the Portfolio's
average net assets. The following table shows the fees paid by the Portfolio to
SAFECO Services for year ending December 31, 1995 and for the period from
February 28, 1994 (initial public offering) to December 31, 1994:
Fees Paid to SAFECO Services*
<TABLE>
<CAPTION>
Period From February 28, 1994
(Initial Public Offering)
Year Ending December 31, 1995 December 31, 1994
- ----------------------------- -----------------------------
<S> <C>
$309 $96
</TABLE>
*Table reflects fees of $3.10 per shareholder transaction payable pursuant to
the prior fee schedule.
