<PAGE>
GROWTH AND INCOME FUND
BALANCED FUND
SUPPLEMENT DATED MARCH 10, 1997 TO PROSPECTUS DATED FEBRUARY 18, 1997
The Prospectus is amended as follows:
John K. Schonberg has resigned as a portfolio manager of Growth and Income
Fund and Balanced Fund. Mr. Schonberg has been replaced by Steven B. Markusen,
who has been appointed as a portfolio manager for Growth and Income Fund and for
the equity portion of Balanced Fund's portfolio, and by Brent Mellum, who has
been appointed as a portfolio manager for Growth and Income Fund. Other
portfolio managers for the Funds remain unchanged. See "Portfolio Management"
on page 18 of the Prospectus.
Mr. Markusen has been a Senior Vice President of the Adviser since 1993.
Prior to that, he had been with Investment Advisers, Inc., Minneapolis,
Minnesota, since 1989, where he served as a Senior Vice President and was
responsible for managing institutional equity and balanced portfolios and the
IAI Growth Fund. In addition, he was responsible for a group which managed $2.5
billion in large capitalization growth equity assets. He is a Chartered
Financial Analyst ("CFA") and has 13 years of financial experience. Mr. Mellum
has been a Vice President of the Adviser since 1996, prior to which he had been
an Assistant Vice President from 1995 to 1996 and a credit analyst from 1993 to
1995. Prior to his employment by the Adviser, Mr. Mellum earned a BS in
business administration and an MBA in finance from the University of Texas. He
is a CFA and has three years of investment experience. 30313
<PAGE>
GROWTH AND INCOME FUND
SUPPLEMENT DATED MARCH 10, 1997 TO PROSPECTUS DATED FEBRUARY 18, 1997
The Prospectus is amended as follows:
John K. Schonberg has resigned as a portfolio manager of Growth and Income
Fund. Mr. Schonberg shared primary responsibility for the day-to-day management
of the Fund with Paul A. Dow, who will continue to act as a portfolio manager of
the Fund. See "Portfolio Management" on page 13 of the Prospectus. In
addition, Steven B. Markusen and Brent Mellum have been appointed as portfolio
managers of the Fund.
Mr. Markusen has been a Senior Vice President of the Adviser since 1993.
Prior to that, he had been with Investment Advisers, Inc., Minneapolis,
Minnesota, since 1989, where he served as a Senior Vice President and was
responsible for managing institutional equity and balanced portfolios and the
IAI Growth Fund. In addition, he was responsible for a group which managed $2.5
billion in large capitalization growth equity assets. He is a Chartered
Financial Analyst ("CFA") and has 13 years of financial experience. Mr. Mellum
has been a Vice President of the Adviser since 1996, prior to which he had been
an Assistant Vice President from 1995 to 1996 and a credit analyst from 1993 to
1995. Prior to his employment by the Adviser, Mr. Mellum earned a BS in
business administration and an MBA in finance from the University of Texas. He
is a CFA and has three years of investment experience. 30303
