FILED PURSUANT TO RULE 497(e)
REGISTRATION FILE NO. 2-95547
January 17, 1995
FIRST PRAIRIE DIVERSIFIED ASSET FUND
Supplement to Prospectus
Dated April 22, 1994
The following information supplements and supersedes
any
contrary information contained in the Prospectus.
The Fund's investment adviser is First Chicago
Investment
Management Company ("FCIMCO"), a newly formed registered,
investment adviser and a wholly-owned subsidiary of The First
National Bank of Chicago. FCIMCO employs substantially all the
investment personnel who previously provided advisory services to
the Fund. The Fund's administrator is Concord Holding
Corporation
(the "Administrator"). The Administrator, located at 125 West
55th
Street, New York, New York 10019, currently provides
administrative
or sub-administrative services to other investment companies with
over $31 billion in assets.
The Fund has agreed to pay FCIMCO a monthly advisory
fee
at the annual rate of .65% of the value of the Fund's average
daily
net assets. The Fund has agreed to pay the Administrator a
monthly
administration fee at the annual rate of .15% of the value of the
Fund's average daily net assets.
The Fund's distributor is Concord Financial Group, Inc.
Concord Financial Group, Inc., located at 125 West 55th Street,
New
York, New York 10019, is a wholly-owned subsidiary of the
Administrator and currently distributes the shares of other
investment companies with over $21 billion in assets.
The Fund's Board has approved, subject to shareholder
approval, the reorganization of the Fund as a separate series of
Prairie Funds named Managed Assets Income Fund (the "New
Series").
Prairie Funds is a newly-formed registered investment company.
If
the transaction is consummated, former Fund shareholders will
receive the same number of shares of the New Series as they owned
of the Fund immediately before the transaction was consummated.
These shares initially will have the same net asset value as the
shares of the Fund owned before the transaction was consummated.
The transaction is expected to be tax free for Federal income tax
purposes. If the transaction is consummated, the Fund will be
liquidated and its existence terminated. Consummation of the
transaction is anticipated to occur on or about May 1, 1995.
