NEW ENGLAND ADJUSTABLE RATE U.S. GOVERNMENT FUND
                     NEW ENGLAND GOVERNMENT SECURITIES FUND
                  NEW ENGLAND LIMITED TERM U.S. GOVERNMENT FUND


     Supplement dated May 28, 1997 to the New England Bond Fund Prospectuses
               (Classes A, B and C and Class Y) dated May 1, 1997

Effective immediately, Joel A. Damiani, Vice President of Back Bay Advisors,
L.P. ("Back Bay Advisors"), has assumed day-to-day responsibility for the
management of New England Government Securities Fund. A Chartered Financial
Analyst, Mr. Damiani specializes in mortgage and mortgage derivative securities.
He has been employed by Back Bay Advisors since 1991.

Also effective immediately, James S. Welch, Senior Vice President, and Scott A.
Millimet, Executive Vice President, of Back Bay Advisors, have assumed
day-to-day responsibility for the management of New England Limited Term U.S.
Government Fund. Prior to joining Back Bay Advisors in 1993, Mr. Welch was a
Vice President and Portfolio Manager at the Putnam Companies. A specialist in
short- to intermediate-term fixed-income securities, Mr. Welch's experience
includes extensive secondary market trading as well as developing investment
strategy. Prior to joining Back Bay Advisors in 1994, Mr. Millimet was employed
by BT Futures, Inc. as a Vice President. Prior to December 1993, Mr. Millimet
worked for Carroll McEntee & McGinley as a Senior Vice President where he
managed the floor trading operations. He also served as Regional Manager and
Senior Trader/Asia for Carroll McEntee & McGinley's Tokyo office.

IN THE SECTION ENTITLED "FUND DETAILS - INCOME TAX CONSIDERATIONS", THE FIRST
SENTENCE IN THE PARAGRAPH ENTITLED "ADJUSTABLE RATE FUND" IS REVISED TO READ AS
FOLLOWS:

While many states grant tax-free status to dividends paid to shareholders of
mutual funds from interest income earned by a Fund from direct obligations of
the U.S. Government, less than 20% of the distributions of the Adjustable Rate
Fund during the current fiscal year are expected to qualify for such tax-free
treatment.

THE FOLLOWING PERTAINS ONLY TO THE BOND FUNDS CLASS A, B AND C PROSPECTUS:

On page 42 of the prospectus, the first two sentences in the right hand column
are revised to read as follows:

If Back Bay Advisors, or Loomis Sayles in the case of the Strategic Income and
High Income Funds, determines, in its sole discretion, that it would be
detrimental to the best interests of the remaining shareholders of the Fund to
make payment wholly or partly in cash, the Fund may pay the redemption price in
whole or in part by a distribution in kind of readily marketable securities held
by the Fund in lieu of cash. Securities used to redeem Fund shares in kind will
be valued in accordance with the Funds' procedures for valuation described under
"Fund Details - How Fund Share Price Is Determined." Securities distributed by a
Fund in kind will be selected by Back Bay Advisors, or Loomis Sayles in the case
of Strategic Income and High Income Funds, in light of the Fund's objective and
will not generally represent a pro rata distribution of each security held in
the Fund's portfolio.