BAIRD CAPITAL DEVELOPMENT FUND, INC.
CROSS REFERENCE SHEET
(Pursuant to Rule 495 showing the location in the Prospectus and the
Statement of Additional Information of the responses to the Items of Parts A and
B of Form N-1A.)
Caption or Subheading in Prospectus or
Item No. on Form N-1A Statement of Additional Information
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Part A - INFORMATION REQUIRED IN PROSPECTUS
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1. Cover Page Cover Page
2. Synopsis Expense Information
3. Condensed Financial Financial Highlights; Performance
Information Information
4. General Description of Introduction; Recent Developments;
Registrant Investment Objectives and Policies;
Portfolio Securities and Investment
Practices; Prospectus Supplement
dated May 14, 1996
5. Management of the Fund Management of the Funds; Financial
Highlights; Purchase of Shares
5A. Management's Discussion of Management's Discussion of Performance of
Fund Performance the Funds
6. Capital Stock and Other Dividend Reinvestment; Dividends,
Securities Distributions and Taxes; Capital
Structure; Shareholder Reports
7. Purchase of Securities Being Cover Page; Management of the Funds;
Offered Determination of Net Asset Value; Purchase
of Shares; Reinstatement Privilege;
Dividend Reinvestment; Directed
Reinvestment; Exchange Privilege;
Individual Retirement Account and
Simplified Employee Pension Plan; Defined
Contribution Retirement and 401(k) Plan
8. Redemption or Repurchase Redemption and Repurchase of Shares;
Systematic Withdrawal Plan; Automatic
Exchange Plan
9. Legal Proceedings *<F1>
PART B - INFORMATION REQUIRED IN STATEMENT OF ADDITIONAL INFORMATION
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and Recent Developments; also included in
History Prospectus under "Introduction," "Recent
Developments" and Prospectus Supplement
dated May 14, 1996
13. Investment Objectives and Investment Restrictions
Policies
14. Management of the Registrant Directors and Officers of the Fund
15. Control Persons and Directors and Officers of the Fund
Principal Holders of
Securities
16. Investment Advisory and Directors and Officers of the Fund;
Other Services Investment Adviser and Sub-Adviser;
Distribution of Shares; Custodian;
Independent Accountants
17. Brokerage Allocation and Allocation of Portfolio Brokerage
Other Practices
18. Capital Stock and Other Included in Prospectus under "Capital
Securities Structure" and Shareholder Meetings
19. Purchase, Redemption and Included in Prospectus under "Determination
Pricing of Securities Being of Net Asset Value; "Purchase of Shares";
Offered "Dividend Reinvestment"; "Directed
Reinvestment"; "Exchange Privilege";
"Systematic Withdrawal Plan"; "Automatic
Exchange Plan"; "Individual Retirement
Account and Simplified Employee Pension
Plan"; "Defined Contribution Retirement
and 401(k) Plan"; Determination of Net
Asset Value and Performance
20. Tax Status Taxes
21. Underwriters Distribution of Shares
22. Calculations of Performance Determination of Net Asset Value
Data and Performance
23. Financial Statements Financial Statements
*<F1> Answer negative or inapplicable
BAIRD CAPITAL DEVELOPMENT FUND, INC.
SUPPLEMENT DATED MAY 14, 1996 TO
PROSPECTUS DATED JANUARY 22, 1996
On December 20, 1995, the Baird Capital Development Fund, Inc. (the "Fund")
entered into an Agreement and Plan of Reorganization (the "Plan") pursuant to
which the Fund would transfer substantially all of its net assets to AIM Capital
Development Fund, a newly-created portfolio of AIM Equity Funds, Inc. At a
special meeting held on March 15, 1996, the Shareholders of the Fund approved
the Plan and the reorganization was to close before June 30, 1996. In the
process of preparing to close the reorganization, the parties discovered that
the Fund had been administratively dissolved on November 12, 1993 by the
Wisconsin Secretary of State due to a deficiency in making non-tax
filings. Although the Fund could have been reinstated upon request to the
Wisconsin Secretary of State at any time within two years of its dissolution, by
the time the Fund became aware of the dissolution this two-year period had
expired.
The administrative dissolution does not affect the Fund's net asset value or
its income distribution and redemption policies. The Fund's assets continue to
be managed by Fiduciary Management, Inc. and Robert W. Baird & Co. Incorporated,
as investment advisor and sub-advisor, respectively, in accordance with the
Fund's investment objective and policies.
Efforts to have the administrative dissolution retroactively vacated are
under way. If these efforts are successful, the reorganization with the AIM
Capital Development Fund can be closed on its original terms, although the
closing would occur after June 30, 1996. If these efforts are not successful,
the parties presently intend to proceed with the transaction on the basis of
mutually satisfactory legal opinions and amended agreements. In such event,
shareholders of the Fund will receive supplemental disclosure describing the
revised terms of the reorganization and related matters, and will be asked to
reapprove the transaction with AIM. Expenses of the Shareholders meeting to
reapprove the transaction would not be borne by the Fund.
Similar reorganizations involving the Baird Blue Chip Fund, Inc. and the
Baird Quality Bond Fund are expected to close on or about June 3, 1996. After
the closing of those reorganizations, exchanges between the Baird Capital
Development Fund, Inc. and those two funds will no longer be possible. In
addition, pending resolution of this matter, the Board of Directors has
suspended sales of Fund shares. In the event that efforts to retroactively
vacate the administrative dissolution are not successful, and if the
reorganization with AIM Capital Development Fund is not completed, the Fund will
consider such other options as may be available to it at the time.
The circumstances giving rise to the administrative dissolution date back to
1992. The Fund has no record of having received annual report forms from the
Wisconsin Secretary of State for that year, and the Fund's required annual
report and related $25 fee were not filed for that year. Although the Wisconsin
Secretary of State sent notices of the pending administrative dissolution and of
the final dissolution to the Fund, those notices were returned by the U.S.
Postal Service to the Wisconsin Secretary of State as undeliverable. As a
result, the Fund received no notice that it was in danger of being, or that it
had been, administratively dissolved, and was unaware of that fact until
recently.
