FOUNDERS FUNDS, INC.
Supplement to Statement of Additional Information Dated August 12, 1996
The second Non-Fundamental investment restriction applicable to all of the
Funds, appearing on page 17 of the section of the Funds' Statement of Additional
Information entitled "Investment Restrictions," is hereby amended to provide
that each Fund may not:
2. With the exception of Money Market Fund, invest more than 15% of the
market value of its net assets in securities that are not readily marketable,
including repurchase agreements maturing in over seven days. Money Market Fund
may invest up to 10% of its net assets in repurchase agreements maturing in over
seven days.
The first Non-Fundamental investment restriction applicable to Founders Growth
Fund, appearing on page 28 of the section of the Funds' Statement of Additional
Information entitled "Investment Restrictions," is hereby amended to provide
that the Fund may not:
1. Sell puts, calls, straddles, spreads or combinations thereof.
The information concerning David L. Ray appearing on page 35 of the section of
the Funds' Statement of Additional Information entitled "Directors and Officers"
is hereby amended as follows, and the following additional information is hereby
added to that section:
DAVID L. RAY
Vice President and Treasurer
Vice President, Assistant Secretary and Treasurer of Founders.
Until January 1990, President, United Shareholder Services, Inc.,
a mutual fund transfer agent, San Antonio, Texas, and Vice
President, United Services Advisors, Inc., investment adviser,
San Antonio, Texas. Born: July 10, 1957
KENNETH R. CHRISTOFFERSEN
Secretary
Vice President and General Counsel of Founders. Formerly,
assistant general counsel (February 1993 to May 1996), vice
president (April 1995 to May 1996) and assistant vice president
(February 1993 to April 1995) of INVESCO Funds Group, Inc. and
INVESCO Trust Company, Denver, Colorado, and partner (January
1989 to February 1993) and associate (August 1981 to December
1988) with the law firm of Davis, Graham & Stubbs, Denver,
Colorado. Born: September 30, 1955.
The date of this Supplement is September 10, 1996.
