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LIFE & ANNUITY TRUST RULE 497(E)
ASSET ALLOCATION FUND FILE NO. 33-70988
U.S. GOVERNMENT ALLOCATION FUND
SUPPLEMENT DATED JUNE 23, 1995
TO PROSPECTUS DATED MAY 1, 1995
On June 21, 1995, Wells Fargo & Co. and The Nikko Securities Co., Ltd.
signed a definitive agreement to sell their joint venture interest in Wells
Fargo Nikko Investment Advisors ("WFNIA") to Barclays PLC of the U.K. The sale,
which is subject to the approval of appropriate regulatory authorities, is
expected to close in the fourth quarter of 1995.
Barclays is the largest clearing bank in the U.K., with $259 billion in
total assets. Barclays has announced its intention to combine WFNIA with the
quantitative group of BZW Asset Management ("BZWAM"), its international asset
management arm. BZWAM is the largest quantitative fund manager in Europe, with
approximately $32 billion of quantitative funds under management, as of March
31, 1995. The BZW Division of Barclays, of which BZWAM forms a part, is the
investment banking arm of Barclays and offers a full range of investment
banking, capital markets and asset management services.
Under the Investment Company Act of 1940, this proposed change of control
of WFNIA would result in an assignment and termination of the current
Sub-Investment Advisory Agreement between WFNIA, Wells Fargo Bank and the Funds.
Subject to the approval of Life & Annuity Trust's Board of Trustees, it is
contemplated that a special meeting of shareholders of the Funds will be
convened to consider a new Sub-Investment Advisory Agreement with WFNIA, which
will become effective only upon the change of control of WFNIA. It is not
anticipated that the proposed change of control will change the investment
objective or overall investment strategy of the Funds.
