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Filed pursuant to Rule 497(e)
Registration No. 2-59115
SUPPLEMENT DATED AUGUST 1, 1995
TO THE PROSPECTUS DATED MARCH 30, 1995 OF
IAI INSTITUTIONAL BOND FUND
(A PORTFOLIO OF IAI INVESTMENT FUNDS I, INC.)
The following is added to the first paragraph under "Additional
Information."
To reduce the volume of mail you receive, only one copy of most Fund
reports, such as the Fund's Annual Report, may be mailed to your household (same
surname, same address). Please call IAI Mutual Fund Shareholder Services at
1-800-945-3863 if you wish to receive additional shareholder reports.
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Filed pursuant to Rule 497(e)
Registration No. 2-59115
Registration No. 33-40496
SUPPLEMENT DATED AUGUST 1, 1995
TO THE JOINT PROSPECTUS DATED MARCH 30, 1995 OF
IAI BOND FUND (A PORTFOLIO OF IAI INVESTMENT FUNDS I, INC.)
IAI GOVERNMENT FUND AND IAI MINNESOTA TAX FREE FUND
(SEPARATE PORTFOLIOS OF IAI INVESTMENT FUNDS VI, INC.)
The following replaces the disclosure contained in the second and third
paragraphs under "Investment Objectives and Policies - Bond Fund."
Bond Fund pursues its objective by investing primarily in a diversified
portfolio of investment grade bonds and other debt securities of similar
quality. Investment grade securities are those securities rated within the four
highest grades assigned by Moody's Investors Service, Inc. ("Moody's") or
Standard & Poor's Corporation ("S&P"). Bond Fund may also invest in below
investment grade securities. Such securities are commonly referred to as junk
bonds. Bond Fund currently intends to limit such investments to 15% of its
total assets and not to invest in junk bonds rated lower than B by Moody's or
S&P.
Securities rated in the medium to lower rating categories of nationally
recognized statistical rating organizations and unrated securities of comparable
quality are predominately speculative with respect to the capacity to pay
interest and repay principal in accordance with the terms of the security and
generally involve a greater volatility of price than securities in higher rating
categories. See "Investment Objectives and Policies" in and Appendix A to the
Statement of Additional Information for additional information regarding ratings
of debt securities. In purchasing such securities, Bond Fund will rely on IAI's
judgment, analysis and experience in evaluating the creditworthiness of an
issuer of such securities. IAI will take into consideration, among other
things, the issuer's financial resources, its sensitivity to economic conditions
and trends, its operating history, the quality of the issuer's management and
regulatory matters.
The following is added to the first paragraph under "Additional
Information."
To reduce the volume of mail you receive, only one copy of most Fund
reports, such as the Funds' Annual Report, may be mailed to your household (same
surname, same address). Please call IAI Mutual Fund Shareholder Services at
1-800-945-3863 if you wish to receive additional shareholder reports.
