1933 Act Registration No. 33-12
1940 Act File No. 811-4401
Rule 497(e)
PRINCIPAL PRESERVATION PORTFOLIOS, INC.
WISCONSIN TAX-EXEMPT PORTFOLIO
SUPPLEMENT DATED DECEMBER 31, 2000
TO PROSPECTUS DATED MAY 1, 2000
CONSOLIDATION OF SUB-ADVISOR AND ADVISOR
As disclosed in the Prospectus, the Wisconsin Tax-Exempt Portfolio
presently is managed by B.C. Ziegler & Company ("B.C. Ziegler") as investment
advisor. Day-to-day investment decisions and the management of the Portfolio's
assets are performed by Ziegler Asset Management, Inc. ("ZAMI"), as sub-advisor,
under the direction of B.C. Ziegler and the Board of Directors. The Ziegler
Companies, Inc., the parent company of both B.C. Ziegler and ZAMI, is engaging
in a corporate restructuring in order to gain some operational and managerial
efficiencies that it believes will better serve its business plan. In
connection with this restructuring, ZAMI will merge with and into B.C. Ziegler,
effective January 1, 2001.
As a result of this merger, the Sub-Advisory Agreement under which ZAMI
serves as sub-advisor to the Portfolio will terminate, and B.C. Ziegler will
assume direct responsibility for the day to day investment decisions and
management of the assets of the Portfolio under its existing investment advisory
agreement. Mr. Craig Vanucci, who presently serves as portfolio manager, and
the investment personnel who assist him will continue to manage the assets of
the Portfolio under the same investment objectives, policies and programs as
presently are in effect. The existing Investment Advisory Agreement between the
Portfolio and B.C. Ziegler will continue in full force and effect, meaning that
the scope of investment advisory services that B.C. Ziegler provides to the
Portfolio and the fees that the Portfolio pays for those services will remain
the same. In short, this restructuring simply consolidates into a single
corporate entity the services that B.C. Ziegler and ZAMI presently provide to
the Portfolio through two separate corporate entities, and will have no
substantive impact on the Portfolio.
