Rule 497(e) File Nos. 33-6540 and 811-5033
Supplement

DATED SEPTEMBER 5, 2000 TO
PROSPECTUS DATED MAY 1, 2000

CITI(SM) SHORT-TERM U.S. GOVERNMENT INCOME FUND
(formerly CitiFunds(R) Short-Term U.S. Government Income Portfolio)

The Fund has changed its name to Citi Short-Term U.S. Government Income Fund.
All front-end sales charges on Fund shares are waived, effective
July 14, 2000.

Effective September 11, 2000, exchanges into certain of the CitiFunds or other
mutual funds previously available for exchange will no longer be allowed. Please
consult your Service Agent for more information.

CITITRADE PROGRAM. Effective September 5, 2000, shares may be purchased through
the Cititrade Program by customers that have established a Cititrade Account.
For more detailed information on how to open a Cititrade Account, please visit
the Cititrade website at www.mycititrade.com, or call a Cititrade account
representative at 1-888-663-CITI[2484].

Once you open your Cititrade Account, you will be subject to the general account
requirements of the Cititrade Program, as described in the Cititrade account
application, and will have access to all the electronic financial services made
available from time to time over the Internet by the Cititrade Program. The
prospectus for the Fund is readily available for viewing and printing on the
Cititrade website. Please note that www.mycititrade.com is an inactive textual
reference only, meaning that the information contained on the website is not
part of the prospectus for the Fund and is not incorporated therein or herein by
reference.

Investors who have established an account with Cititrade may receive shareholder
information about the Fund they invest in electronically, unless they otherwise
request to receive the information in paper format. Shareholder information
includes prospectuses, financial reports, confirmations, proxy solicitations and
financial statements. Cititrade shareholders may also receive other Fund-related
correspondence through their e-mail account.

You may incur costs imposed by your Internet service provider for on-line access
to shareholder documents and maintaining an e-mail account. The Fund reserves
the right to deliver paper-based documents to investors in certain
circumstances, at no cost to you.

                                     Rule 497(e) File Nos. 33-6540 and 811-5033

Supplement

DATED SEPTEMBER 5, 2000 TO
STATEMENT OF ADDITIONAL INFORMATION DATED MAY 3, 2000

CITI(SM) SHORT-TERM U.S. GOVERNMENT INCOME FUND
(formerly CitiFunds(R) Short-Term U.S. Government Income Portfolio)

The Fund has changed its name to Citi Short-Term U.S. Government Income Fund.
Effective September 5, 2000, the Fund and Government Income Portfolio have new
business addresses, new officers and new administrators and distributors. More
information is provided below.

ADDRESSES.

    CitiFunds Fixed Income Trust
    388 Greenwich Street
    New York, New York 10013
    Telephone 800-451-2010

    Government Income Portfolio
    388 Greenwich Street
    New York, New York 10013
    Telephone 800-451-2010

ADMINISTRATOR. The new administrator for the Fund and the Government Income
Portfolio (the "Portfolio") is Citibank, N.A. ("Citibank"). Pursuant to
administrative services agreements (the "Administrative Services Agreements"),
Citibank provides CitiFunds Fixed Income Trust (the "Trust") and the Portfolio
with general office facilities and Citibank supervises the overall
administration of the Trust and the Portfolio, including, among other
responsibilities, the negotiation of contracts and fees with, and the monitoring
of performance and billings of, the Trust's and the Portfolio's independent
contractors and agents; the preparation and filing of all documents required for
compliance by the Trust and the Portfolio with applicable laws and regulations;
and arranging for the maintenance of books and records of the Trust and the
Portfolio. Citibank provides persons satisfactory to the Board of Trustees of
the Trust and the Portfolio to serve as Trustees and officers of the Trust and
the Portfolio. Such Trustees and officers, as well as certain other employees
and Trustees of the Trust and the Portfolio, may be directors, officers or
employees of Citibank or its affiliates.

The fees payable to Citibank under the Administrative Services Agreements are
0.25% of the average daily net assets of the Fund, and 0.05% of the average
daily net assets of the Portfolio, accrued daily and paid monthly, in each case
on an annualized basis for the Fund's or the Portfolio's then-current fiscal
year. However, Citibank has voluntarily agreed to waive a portion of the fees
payable as necessary to maintain the projected rate of total operating expenses.

The Administrative Services Agreements with the Trust and the Portfolio provide
that Citibank may render administrative services to others. These Administrative
Services Agreements continue in effect as to the Fund or the Portfolio, as
applicable, if such continuance is specifically approved at least annually by
the Trust's or the Portfolio's Board of Trustees or by a vote of a majority of
the outstanding voting securities of the Fund or the Portfolio and, in either
case, by a majority of the Trustees of the Trust or Portfolio who are not
parties to the applicable Administrative Services Agreement or interested
persons of any such party. The Administrative Services Agreements with the Trust
and the Portfolio terminate automatically if they are assigned and may be
terminated by the Trust or the Portfolio without penalty by vote of a majority
of the outstanding voting securities of the Fund or Portfolio, as applicable, or
by either party thereto on not more than 60 days' nor less than 30 days' written
notice. The Administrative Services Agreements with the Trust and the Portfolio
also provide that Citibank and its personnel shall not be liable for any error
of judgment or mistake of law or for any act or omission in the administration
or management of the Trust or the Portfolio, except for willful misfeasance, bad
faith or gross negligence in the performance of its or their duties or by reason
of reckless disregard of its or their obligations and duties under the
Administrative Services Agreements.

DISTRIBUTOR.  The new Distributor for the Fund is Salomon Smith Barney, Inc.
("Salomon Smith Barney"), 388 Greenwich Street, New York, New York 10013.
Salomon Smith Barney will serve as the Distributor of the Fund's shares
pursuant to a Distribution Agreement with the Trust with respect to the Fund
(the "Distribution Agreement"). Under the Distribution Agreement, Salomon
Smith Barney is obligated to use its best efforts to sell shares of the Fund.

The Distribution Agreement is terminable with or without cause, without penalty,
on 60 days' notice by the Board of Trustees of the Trust or by vote of holders
of a majority of the Fund's outstanding voting securities, or on 90 days' notice
by Salomon Smith Barney. Unless otherwise terminated, the Distribution Agreement
shall continue for successive annual periods so long as such continuance is
specifically approved at least annually by (a) the Trust's Board of Trustees, or
(b) by a vote of a majority (as defined in the Investment Company Act of 1940,
as amended (the "1940 Act")) of the Fund's outstanding voting securities,
provided that in either event the continuance is also approved by a majority of
the Board members of the Trust who are not interested persons (as defined in the
1940 Act) of any party to the Distribution Agreement, by vote cast in person at
a meeting called for the purpose of voting on such approval. The Distribution
Agreement will terminate automatically in the event of its assignment, as
defined in the 1940 Act and the rules and regulations thereunder.

OFFICERS. The new officers of the Trust and the Portfolio and their principal
occupations during the past five years will be as set forth below. Their titles
may have varied during that period. Asterisks indicate that those officers are
"interested persons" (as defined in the 1940 Act) of the Fund. Unless otherwise
indicated below, the address of each officer is 388 Greenwich Street, New York,
New York 10013.

HEATH B. McLENDON* (age 66) - President of the Trust and the Portfolio;
Chairman, President, and Chief Executive Officer of SSB Citi Fund Management LLC
("SSB Citi") (since March 1996); Managing Director of Salomon Smith Barney
(since August 1993); President of Travelers Investment Adviser, Inc. ("TIA");
Chairman or Co-Chairman of the Board of seventy-one investment companies
associated with Salomon Smith Barney. His address is 7 World Trade Center, New
York, New York 10048.

LEWIS E. DAIDONE* (age 42) - Senior Vice President and Treasurer of the Trust
and the Portfolio; Managing Director of Salomon Smith Barney; Chief Financial
Officer of the Smith Barney mutual funds; Treasurer and Senior Vice President or
Executive Vice President of sixty-one investment companies associated with
Citigroup; Director and Senior Vice President of SSB Citi and TIA. His address
is 125 Broad Street, New York, New York 10004.

IRVING DAVID* (age 39) - Controller of the Trust and the Portfolio; Director of
Salomon Smith Barney; formerly Assistant Treasurer of First Investment
Management Company. Controller or Assistant Treasurer of fifty-three investment
companies associated with Citigroup. His address is 125 Broad Street, New York,
New York 10004.

FRANCES GUGGINO* (age 42) - Assistant Controller of the Trust and the Portfolio;
Vice President of Citibank, N.A. since February, 1991.

PAUL BROOK* (age 46) - Assistant Controller of the Trust and the Portfolio;
Director of Salomon Smith Barney; Controller or Assistant Treasurer of forty-
three investment companies associated with Citigroup; from 1997-1998 Managing
Director of AMT Capital Services Inc.; prior to 1997 Partner with Ernst & Young
LLP. His address is 125 Broad Street, New York, New York 10004.

ANTHONY PACE* (age 35); Assistant Treasurer of the Trust and the Portfolio. Mr.
Pace is Vice President - Mutual Fund Administration for Salomon Smith Barney
Inc. Since 1986, when he joined the company as a Fund Accountant, Mr. Pace has
been responsible for accounts payable, financial reporting and performance of
mutual funds and other investment products.

MARIANNE MOTLEY* (age 41) -- Assistant Treasurer of the Trust and the Portfolio.
Ms. Motley is Director - Mutual Fund Administration for Salomon Smith Barney
Inc. Since 1994, when she joined the company as a Vice President, Ms. Motley has
been responsible for accounts payable, financial reporting and performance of
mutual funds and other investment products.

ROBERT I. FRENKEL, ESQ.* (age 45) -- Secretary of the Trust and the Portfolio.
Mr. Frenkel is a Managing Director and General Counsel - Global Mutual Funds for
SSB Citi Asset Management Group. Since 1994, when he joined Citibank as a Vice
President and Division Counsel, he has been responsible for legal affairs
relating to mutual funds and other investment products.

THOMAS C. MANDIA, ESQ.* (age 38) -- Assistant Secretary of the Trust and the
Portfolio. Mr. Mandia is a Vice President and Associate General Counsel for SSB
Citi Asset Management Group. Since 1992, he has been responsible for legal
affairs relating to mutual funds and other investment products.

ROSEMARY D. EMMENS, ESQ.* (age 30) -- Assistant Secretary of the Trust and the
Portfolio. Ms. Emmens has been a Vice President and Associate General Counsel of
SSB Citi Asset Management Group since 1998, where she has been responsible for
legal affairs relating to mutual funds and other investment products. Before
joining Citibank, Ms. Emmens was Counsel at The Dreyfus Corporation since 1995.

HARRIS GOLDBLAT, ESQ.* (age 30) -- Assistant Secretary of the Trust and the
Portfolio. Associate General Counsel at SSB Citi Asset Management Group since
April 2000. From June 1997 to March 2000, he was an associate at the law firm of
Stroock & Stroock & Lavan LLP, New York City, and from September 1996 to May
1997, he was an associate at the law firm of Sills Cummis Radin Tischman Epstein
& Gross, Newark, NJ. From August 1995 to September 1996, Mr. Goldblat served as
a law clerk to the Honorable James M. Havey, P.J.A.D., in New Jersey.

The officers of the Trust and the Portfolio also hold comparable positions with
certain other funds for which Salomon Smith Barney or its affiliates serve as
the distributor or administrator.