FOUNDERS FUNDS, INC.
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1997
The section of the Funds' Statement of Additional Information entitled
"Brokerage Allocation and Portfolio Turnover Rates" is hereby amended on page 52
to add the following paragraph as a new ninth paragraph of the section:
The staff of the Securities and Exchange Commission has been
conducting an investigation concerning possible violations of the
federal securities laws in connection with brokerage transactions
Founders effected for certain of its private account clients during
the period 1992 through mid-1995. The Commission has not yet made any
determination as to whether any violations have occurred and, if so,
whether any action is appropriate. Founders currently is engaged
in discussions with the staff concerning the staff's possible
recommendations to the Commission.
The date of this Supplement is January 6, 1998.
