FPS SERVICES, INC.
3200 Horizon Drive
P.O. Box 61503
King of Prussia, PA 19406-0903.
July 10, 1997
Securities and Exchange Commission
Judiciary Plaza
Public Filing Desk
450 Fifth Street, NW
Washington, DC 20549
RE: IAA Trust Taxable Fixed Income Series Fund, Inc. (the "Fund")
1933 Act File No. 2-73768
1940 Act File No. 811-3186
Ladies and Gentlemen of the Commission:
In accordance with the provisions of Rule 497(e) of the Securities Act of 1933,
as amended, enclosed for filing on behalf of the Registrant is the EDGAR
transmission of the Supplement dated July 10, 1997, to the Fund's Prospectus
dated October 28, 1996, as supplemented January 1, 1997 and June 27, 1997.
The purpose of this supplement is to update the "OPERATING EXPENSES TABLE" and
"FINANCIAL HIGHLIGHTS" in the Prospectus with respect to the Registrant's
Short-Term Government Bond Series and the Long-Term Bond Series.
Should you have any questions, comments or require further information, I can
be reached directly at (610) 239-4748. Thank you for your continued courtesy
and cooperation.
Sincerely,
Martin M. Fawzy
Corporate Compliance Administrator
IAA TRUST TAXABLE FIXED INCOME SERIES FUND, INC.
Short-Term Government Bond Series and Long-Term Bond Series:
Prospectus Supplement Dated July 10, 1997, to Prospectus Dated October 28,
1996, as supplemented on January 1, 1997 and on June 27, 1997.
Operating Expenses Table. The table below sets forth new expense data for each
of the Short-Term Government Bond Series and the Long-Term Bond Series.
OPERATING EXPENSES TABLE
Taxable Fixed Income Series Fund
Short-Term Government Long-Term
Bond Series(1) Bond Series(1)
Shareholder Transaction Expenses:
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price) none none
Maximum Sales Load Imposed
on Reinvested Dividends . . . . . none none
Deferred Sales Load . . . . . . . . . none none
Redemption Fee. . . . . . . . . . . . none none
Exchange Fee. . . . . . . . . . . . . none none
Annual Fund Operating Expenses:
(as a percentage of average net assets)
Management Fees . . . . . . . 0.50% 0.75%
Waiver of Management Fees . . (0.30%) (0.46%)
12b-1 Fees. . . . . . . . . . 0.25% 0.25%
Other Expenses. . . . . . . . 0.53% 0.44%
Total Fund Operating Expenses. 0.98% 0.98%
(1) With respect to Short-Term Government Bond Series and Long-Term Bond
Series, the ratios shown reflect voluntary advisory fee waivers and any
expense reimbursements by the advisor which became effective July 1, 1997.
Example:
You would pay the following expenses
on a $1,000 investment, assuming a 1 year $10 $10
5% annual return.. . . . . . . 3 years $31 $31
The above information supplements the "OPERATING EXPENSES TABLE" in the
Prospectus.
Financial Highlights (Footnotes). The following sentence revises the
net expense ratios for Short-Term Government Bond Series and Long-Term
Bond Series and should be inserted as the third sentence in the footnote marked
with the symbol "+" in the Supplement dated June 27, 1997 to the Prospectus:
"The Advisor has voluntarily agreed to continue its advisory fee waivers and
any expense reimbursements so that the ratio of expenses to average net assets
will not exceed 0.98% for Short-Term Government Bond Series and Long-Term Bond
Series during the period from July 1, 1997 through June 30, 1998."
The above sentence further supplements "FINANCIAL HIGHLIGHTS" in
the Prospectus.
