File No. 333-61751
                                               Rule 497(e)


            STEIN ROE FLOATING RATE INCOME FUND

          Supplement to Nov. 20, 1998 Prospectus
              ________________________________

     REDUCTION OF FEES.  Effective August 3, 1999, the annual
management fee was decreased from 0.85% of average net assets to
0.45%; and the annual administrative fee was reduced from 0.25% of
average net assets to 0.20%.

     MULTIPLE CLASSES OF SHARES.  Stein Roe Floating Rate Income
Fund has applied for exemptive relief from the Securities and
Exchange Commission to allow the Fund to issue multiple classes of
shares and, in the case of subsequently authorized classes of
shares only, charge asset-based distribution fees and early
withdrawal charges.  The exemptive relief would not affect the
fees and expenses of the Shares offered in this prospectus.  As a
condition to the exemptive relief, the Fund would be required to
comply with certain regulations that would not otherwise be
applicable to the Fund.  There can be no assurance that the
exemptive relief will be granted.  If the relief is not granted,
the Fund does not intend to issue multiple classes of shares or
charge asset-based distribution fees or early withdrawal charges.

     REPURCHASE REQUEST DEADLINES.  Quarterly Repurchase Request
Deadlines will be on the 15th day in each of the months of March,
June, September and December.  If the 15th is a weekend or
holiday, the Repurchase Request Deadline will be the next business
day.


               This Supplement is Dated August 3, 1999