File No. 333-13331
Rule 497(e)
STEIN ROE INSTITUTIONAL TRUST
Stein Roe Institutional High Yield Fund
Supplement to Prospectus Dated January 2, 1997
_________________________
Stephen F. Lockman was named portfolio manager of SR&F
High Yield Portfolio and Stein Roe Income Fund on March 3,
1997.
Associate portfolio manager of High Yield Portfolio
since its inception in November 1996 and of Income Fund since
October 1995, Mr. Lockman joined the Adviser in January 1994.
As a senior research analyst for the Adviser's fixed income
department from 1994 to 1997, Mr. Lockman has broad expertise
in the fixed income markets, with specialties in the high
yield sector and the aerospace, broadcasting, entertainment,
insurance, mining/metals, paper/forest products, printing,
publishing and real estate industries. In addition, he
served as the fixed income department's sovereign debt
analyst from 1994 to 1997, evaluating securities for its more
than $1 billion portfolio of dollar-denominated foreign
investments. Mr. Lockman previously served as portfolio
manager for the Illinois State Board of Investment from 1987
to 1994, and as a trust investment officer for LaSalle
National Bank from 1983 to 1987. A chartered financial
analyst, Mr. Lockman earned a bachelor's degree in 1983 from
the University of Illinois and a master's degree in 1986 from
DePaul University.
This Supplement is Dated March 4, 1997
