Bank of America is investment advisor for new family of "life-style" mutual funds.

LOS ANGELES--(BUSINESS WIRE)--Sept. 27, 1995--Bank of America is the investment advisor for a new family of "life-style" mutual funds, which are designed to help consumers take the guesswork out of investing to achieve financial goals over specific periods of time.

The new funds, called the Time Horizon Funds, consist of three portfolios. Each of these seeks to provide long-term investors with maximum total return over a stated investment time period, while also increasingly emphasizing capital preservation as each fund approaches its target time horizon.

-- Time Horizon Portfolio 1 is managed for individuals investing for a financial goal expected near the year 2005.

-- Time Horizon Portfolio 2 was developed for investors who have financial objectives they wish to achieve close to the year 2015.

-- Time Horizon Portfolio 3 targets goals expected to occur around the year 2025.

Time Horizon Funds are sponsored and distributed by Concord Financial Group, Inc., which is unaffiliated with Bank of America NT&SA, the Funds' investment advisor.

"Time Horizon Funds managed by Bank of America should appeal to both first-time and sophisticated investors who are looking for a simple and convenient way to invest in mutual funds. We've designed the funds to take the anxiety out of the process of selecting the right fund at the right time because the funds are actively managed around time frames to help consumers achieve their long-term financial goals," said Debra McGinty-Poteet, senior vice president and managing director of Funds Management at Bank of America.

"Deciding where and how much to invest requires more time and expertise than most people have. The Time Horizon Funds seek to make these investing decisions easy for investors," McGinty-Poteet added.

Depending on their financial objectives and the time available to achieve them, investors can use Time Horizon Funds to invest for a myriad of life's future needs, such as sending a child through college, purchasing a larger home, having enough money to retire, starting or acquiring a business, or buying a mountain retreat.

The Time Horizon Funds use an asset allocation strategy, but with a very important difference. The investment mix of the Time Horizon Funds, which is comprised primarily of equity and fixed-income securities, will be adjusted over time to reflect where each fund is in its "life cycle."

During the early years, for example, the Time Horizon portfolios will be managed relatively aggressively in order to seek to grow the funds, but as the funds approach their time horizon target dates, the management objectives will be shifted gradually to more conservative investments to help preserve the capital in each fund.

With most other mutual funds the investment objective remains the same over time. For example, if someone invested in a typical growth mutual fund for 20 years, the philosophy for that entire period would be to grow the investment as aggressively in year 20 as in year one.

According to McGinty-Poteet, Time Horizon Funds are designed to be a simple, convenient solution for investors. For the beginning investor, the Time Horizon Funds provide a fully structured portfolio at the outset, while for an experienced investor the funds can offer added portfolio diversification.

Following are highlights of the Time Horizon Funds:

Investors have two ways to establish a Time Horizon Account:

- They can open a Time Horizon account with only $500 and make subsequent purchases for as little $50, any time they want.

- Or, investors may choose the Portfolio Builder Program. This reduces the amount needed to open a Time Horizon account to just $50. Investors can participate in this program by linking their Time Horizon account to a bank account, which enables them to start investing with just $50 and continue investing at least $50 per month automatically into their Time Horizon account.

Securities in the three funds are selected primarily from these asset classes:

- Stocks of small, mid-sized, and large companies that the Time Horizon Funds' portfolio managers believe have growth potential or are undervalued.

- Stocks and debt securities of international companies

- Short-, intermediate-, and long-term term government and corporate bonds

- Cash and cash equivalents

Each Time Horizon Fund has a strategic mix of its investments allocated principally to two asset classes: equity securities and fixed income securities.

- The strategic asset allocation mix for each Fund varies over time as the Fund moves closer to its target time horizon. Typically, the more distant a Fund's target time horizon, the greater the allocation to assets with higher growth potential and more risk, such as equity securities. Conversely, the closer a Fund's target time horizon, the greater the emphasis on capital preservation assets such as short-term fixed income securities.

Investors have a choice of purchasing either Class A shares or Class B shares in Time Horizon Funds.

- Class A shares carry a 4.5% maximum front-end sales load. In addition, total annual fund operating expenses are estimated to be 1 percent for Class A shares.

- Class B shares carry a maximum 5.0% contingent deferred sales charge. Class B shares that are redeemed within six years of purchase are subject to this charge. Over this interval, the rate applied to the contingent deferred sales charge declines until year 6, when the charge is no longer applied. In addition, total annual fund operating expenses are estimated to be 1.75 percent for Class B shares, which include a .75 percent 12b-1 distribution fee. Class B shares convert to A shares after eight years.

"Time Horizon Funds are designed to make investing as anxiety-free as possible for consumers," said McGinty-Poteet. "These funds help alleviate much of the confusion typically encountered in investing for long-term financial goals. Consumers have been telling us they need a simpler, easier-to-understand approach to investing. We think the Time Horizon Funds do just that."

For more Information about Time Horizon Funds, investors can call BA Investment Services, Inc., toll free at 1-800-205-8463, from 8 a.m. to 6 p.m. Pacific Standard Time, and receive a prospectus, an application form, and have their questions answered.

Once they have established a Time Horizon account, investors can call 1-800-247-9728 toll-free, seven days a week, 24-hours a day and receive current price and performance data as well as account information.

Time Horizon Facts

September 27, 1995

Portfolios: The Time Horizon Funds consist of three portfolios. - Time Horizon Portfolio 1 is managed for investors with a goal near the year 2005 - Time Horizon Portfolio 2 is managed for investors with a goal around year 2015 - Time Horizon Portfolio 3 is managed for investors with a goal close to the year 2025.

Investment Style/Objective: The Time Horizon Funds use an asset allocation strategy using equity and fixed income securities. The investment objective is to provide long-term investors with maximum total return over a stated investment time period while also increasingly emphasizing capital preservation as each Fund approaches its target time horizon.

Types of Investments: Securities in the portfolios can include: - Stocks from large, mid-sized, and small companies believed to have growth potential - Stocks of international companies - Long-term government and corporate bonds - Intermediate-term government and corporate bonds - Short-term government and corporate bonds - Cash and cash equivalents

Getting Started: There are several ways to invest in Time Horizon Funds. - Customers should talk to the BA Investment Services (BAIS) representative in their retail branch or they can call 1-800-205-8463 to talk to a BAIS Fund Specialist. - Customers can open an account with $500 and make subsequent purchases for as little as $50. - Investors can also open an account through the Portfolio Builder Program with just $50 by linking their Time Horizon account to a bank account and continue investing a minimum of $50 per month automatically.

Pricing: - Class A shares carry a 4.5% maximum front-end sales load. In addition, total annual fund operating expenses are estimated to be 1 percent for Class A shares.

- Class B shares carry a maximum 5.0% contingent deferred sales charge. Class B shares that are redeemed within six years of purchase are subject to this charge. Over this interval, the rate applied to the contingent deferred sales charge declines until year 6, when the charge is no longer applied. In addition, total annual fund operating expenses are estimated to be 1.75 percent for Class B shares, which include a .75 percent 12b-1 distribution fee. Class B shares convert to A shares after eight years.

Toll-Free Information: - For more information about Time Horizon Funds, investors can call BA Investment Services, Inc. at 1-800-205-8463, from 8:00 a.m. to 6:00 p.m. PST, to receive a prospectus, an application form, and have their questions answered. - Once they have opened a Time Horizon account, investors can call 1-800-247-9728 toll free seven days a week, 24 hours a day and receive current price and performance information.

Fund Manager: - Bank of America NT&SA.

Fund Distributor: - Concord Financial Group, Inc.

Broker-Dealer: - BA Investment Services, Inc. is a wholly owned subsidiary of Bank of America NT&SA. BA Investment Services, Inc. is a registered broker-dealer and member of NYSE and SIPC.

Time Horizon Funds are sponsored and distributed by Concord Financial Group, Inc., which is unaffiliated with Bank of America NT&SA, the funds' investment advisor. BA Investment Services, Inc. is a wholly owned subsidiary of Bank of America, a registered broker-dealer and a member of NYSE and SIPC.

Shares of the Funds are NOT deposits of, or guaranteed or endorsed by, Bank of America or its affiliates. The Funds are not insured by the FDIC or any other governmental agency. An investment in mutual fund shares involves investment risks, including possible loss of principal.

The Funds prospectus contains more information about the funds, including fees and expenses, and should be read carefully before investing. A systematic investment plan, such as the Portfolio Builder Program, cannot guarantee a profit or protect against a loss.



CONTACT: Bank of America

Jack Houseman, 415/622-5324

Shirley Norton, 415/622-4041