Rule 497(e)
Securities Act Reg. No. 33-12
1940 Act File No. 811-4401
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
SUPPLEMENT DATED JULY 3, 2000
TO PROSPECTUS DATED MAY 1, 2000
PORTFOLIO MANAGER CHANGE FOR GOVERNMENT PORTFOLIO AND TAX-EXEMPT PORTFOLIO
As a result of the pending retirement of Mr. Thomas P. Sancomb, who
participates with a team in the management of the Government Portfolio and
serves as the portfolio manager of the Tax-Exempt Portfolio, effective July 3,
2000, Ziegler Asset Management, Inc. will reassign personnel responsible for the
management of those Portfolios.
GOVERNMENT PORTFOLIO. The Government Portfolio will be managed by a team
of managers led by Mr. Brian K. Andrew, CFA, CCM, Executive Vice President and
Chief Investment Officer of Ziegler Asset Management, Inc. Mr. Andrew joined
Ziegler Asset Management, Inc. in 1994, following seven years of service in both
bank trust companies and investment advisory firms. In those former roles, Mr.
Andrew managed personal trust, employee benefit and institutional portfolios.
In addition to serving as Ziegler Asset Management, Inc.'s Chief Investment
Officer and the head of its Asset Management Group, Mr. Andrew is a member of
Ziegler Asset Management's Fixed Income Committee and its Equity Committee. Mr.
Andrew has been an instructor in the area of asset investment management for the
past seven years for the American Institute of Banking. He received a B.S. in
Finance from the University of Minnesota.
Mr. Andrew's team will include Mr. Craig S. Vanucci, CFA, Senior Vice
President of Ziegler Asset Management, Inc., and Mr. Robert G. Leuty, CFA, Vice
President, Ziegler Asset Management, Inc. Mr. Vanucci joined Ziegler Asset
Management, Inc. in 1994 and has over 18 years of experience managing personal
trusts, employee benefit and institutional portfolios. Mr. Vanucci currently
serves as a fixed income portfolio manager specializing in the management of
health care, senior living, municipal and corporate accounts. He is the
Chairman of Ziegler Asset Management, Inc.'s Fixed Income Committee. Prior to
joining Ziegler Asset Management, Inc., Mr. Vanucci spent six years with a major
regional bank holding company and served as manager of its Institutional
Investments Division. Mr. Vanucci received a B.S. in Finance from Bowling Green
State University and his Masters of Business from the University of Toledo.
Mr. Leuty joined Ziegler Asset Management, Inc. in 2000, and has over ten
years of experience in the investment industry. He currently serves as a fixed
income portfolio manager, managing institutional fixed income portfolios for
health care, senior living and corporate accounts. He is a member of Ziegler
Asset Management, Inc.'s Fixed Income Committee. Prior to joining Ziegler Asset
Management, Inc., Mr. Leuty spent ten years with a major national bank holding
company and served as a portfolio manager in its Investment Management Division
managing over $8.0 billion in various money market mutual funds. Mr. Leuty
received a B.B.A. in Accounting from the University of Wisconsin-Madison and his
M.B.A. from the University of St. Thomas.
TAX-EXEMPT PORTFOLIO. The Tax-Exempt Portfolio will be managed by Mr.
Craig S. Vanucci.
