CAPSTONE GOVERNMENT INCOME FUND
A SERIES OF CAPSTONE FIXED INCOME SERIES, INC.
SUPPLEMENT DATED JANUARY 2, 1996
TO
PROSPECTUS DATED MAY 1, 1995
AND
SUPPLEMENTED AUGUST 24, 1995
Effective January 1, 1996, Capstone Financial Services, Inc. ("CFS"),
parent of the Adviser, acquired a majority interest in New Castle Advisers, Inc.
("NCA"), the Fund's Subadviser, thereby automatically terminating the Fund's
Subadvisory Agreement. Mr. Howard Potter, the Fund's portfolio manager, will
continue to provide these services to the Fund as Managing Director of the
Adviser, Capstone Asset Management Company, which now provides all investment
advisory services to the Fund pursuant to the Advisory Agreement for the same
total fee. The acquisition of NCA by CFS should therefore have no significant
effect on the management of the Fund.
