[QUARLES & BRADY LETTERHEAD]
August 14, 1998
VIA EDGAR
Securities and Exchange Commission
Division of Investment Management
Judiciary Plaza
450 Fifth Street, N.W.
Washington DC 20549
Re: PRINCIPAL PRESERVATION PORTFOLIOS, INC. (THE "REGISTRANT")
1933 ACT REG. NO. 33-12; 1940 ACT FILE NO. 811-4401
RULE 497(E) PROSPECTUS SUPPLEMENT
Ladies and Gentlemen:
Pursuant to Rule 497(e), enclosed for filing on behalf of the above-named
Registrant is a Supplement, dated August 14, 1998, to its Prospectus, dated July
20, 1998. The Prospectus was included in Post-Effective Amendment No. 45 to the
Registrant's Registration Statement on Form N-1A, which was filed with the
Commission under Rule 485(a)(1) on June 30, 1998 and became effective pursuant
to the Commission's order for accelerated effectiveness on July 20, 1998.
Please call the undersigned at (414) 277-5309 if you have any questions
regarding this filing.
Very truly yours,
QUARLES & BRADY
/s/ Fredrick G. Lautz
Fredrick G. Lautz
291:ba
760314.40007
Enclosure
cc (w/enc): Mr. Kevin C. Rupert (via UPS)
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
SUPPLEMENT DATED AUGUST 14, 1998 TO
PROSPECTUS DATED JULY 20, 1998
PORTFOLIO MANAGER CHANGE FOR GOVERNMENT PORTFOLIO
Effective as of the date of this Prospectus Supplement, changes are being
implemented in the advisory personnel participating in the investment team
responsible for the management of the assets of the Government Portfolio. Mr.
Thomas P. Sancomb will step into the role of team leader, and will be assisted
by Mr. Marc Dion and Mr. Thomas R. Paprocki. Mr. Sancomb also serves as
Portfolio Manager of the Tax-Exempt Portfolio. Mr. Dion participates in the
management of the Dividend Achievers and S&P 100 Plus Portfolios. Biographical
information regarding Mr. Sancomb is included in the Prospectus under the
caption "Tax-Exempt Portfolio - Portfolio Manager," and regarding Mr. Dion under
the caption "S&P 100 Plus Portfolio - Portfolio Manager."
Mr. Paprocki is Vice President of Ziegler Asset Management, Inc. He has
over twenty years of capital markets experience, including portfolio management,
trading, research and sales and training management. Prior to joining Ziegler
Asset Management, Mr. Paprocki served as President of The Huntington Capital
Corp., a subsidiary of Huntington Bancshares, Columbus, Ohio, where he managed
all capital markets activities including institutional securities sales and
trading, investment banking and retail brokerage services. Prior thereto, Mr.
Paprocki served as Senior Vice President and head bond trader for Robert W.
Baird & Co. Incorporated in Milwaukee, Wisconsin.
CORRECTIONS AFFECTING THE SELECT VALUE PORTFOLIO
In the section of the Prospectus captioned "Select Value Portfolio - Annual
Advisory Fee" (page 14), the last break point for the sub-advisory fees that
Ziegler Asset Management pays to Skyline is corrected to read "0.325 of 1% of
average daily net assets in excess of $500 million," rather than "0.325 of 1% of
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average daily net assets in excess of $250 million."
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In that same section of the Prospectus (page 15), the Expense Example
presented for the Select Value Portfolio is corrected to reflect that the
expenses that you would incur on a $1,000 investment in Class A Shares after one
year is $65, rather than the $6 presented in the table.
