THE PANAGORA INSTITUTIONAL FUNDS
SUPPLEMENT DATED FEBRUARY 22, 1996
TO THE PROSPECTUS DATED AUGUST 1, 1995
The following is inserted at the end of the first paragraph
under "Description of Securities and Investment Techniques and
Related Risks - Forward Foreign Currency Transactions" on page
16.
These transactions will require that a Fund
segregate cash or high-grade debt securities to the extent the
Fund's obligations are not otherwise "covered", by the Fund
owning or having the right to acquire or sell the underlying
currency.
The following is inserted at the end of the first paragraph
under "Description of Securities and Investment Techniques and
Related Risks - Futures and Options on Futures" on page 19.
These transactions will require that a Fund segregate cash or
high-grade debt securities to the extent the Fund's obligations
are not otherwise "covered", by the Fund owning or having the
right to acquire or sell the underlying security or financial
instrument.
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THE PANAGORA INSTITUTIONAL FUNDS
SUPPLEMENT DATED FEBRUARY 22, 1996
TO THE STATEMENT OF ADDITIONAL INFORMATION DATED AUGUST 1, 1995
The second sentence in the third paragraph under "Additional
Information on Fund Investments and Strategies and Related Risks
- - Other Considerations" on page 13 is replaced with the
following.
These transactions involve brokerage costs and
require margin deposits. To eliminate potential investment
leverage, a Fund using futures contracts and options is required
to (i) segregate cash or high-grade debt securities with the
Trust's custodian in an amount at least equal to the Fund's
commitment, or (ii) otherwise "cover" the commitment by owning
or having the right to acquire or sell, as applicable, the
underlying security or financial instrument in accordance with
policies established by the staff of the Securities and Exchange
Commission.
The last sentence in the second paragraph under "Additional
Information on Fund Investments and Strategies and Related Risks
- - Currency Transactions" on page 14 is replaced with the
following.
To eliminate potential investment leverage, a Fund using
forward currency exchange contracts is required to (i) segregate
cash or high-grade debt securities with the Trust's custodian
in an amount at least equal to the Fund's commitment, or (ii)
otherwise "cover" the commitment by owning or having the right
to acquire or sell, as applicable, the underlying currency in
accordance with policies established by the staff of the
Securities and Exchange Commission.
