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SUPPLEMENT
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January 22, 1998
to prospectuses dated
November 24, 1997
[LOGO]
Piper Funds Inc.
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Small Company Growth Fund
Emerging Growth Fund
Growth Fund
Growth and Income Fund
Balanced Fund
Government Income Fund
Intermediate Bond Fund
National Tax-Exempt Fund
Minnesota Tax-Exempt Fund
Money Market Fund
U.S. Government Money
Market Fund
Tax-Exempt Money Market Fund
Piper Funds Inc.-II
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Adjustable Rate Mortgage
Securities Fund
Piper Global Funds Inc.
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Emerging Markets Growth Fund
Pacific-European Growth Fund
PENDING ACQUISITION OF PIPER JAFFRAY COMPANIES INC.
Piper Jaffray Companies is the parent company of Piper Capital Management
Incorporated, the investment advisor to each of the Piper funds listed in this
supplement. On December 15, 1997, Piper Jaffray Companies announced that it had
entered into an agreement to be acquired by U.S. Bancorp. It is anticipated that
this acquisition will be completed in the second quarter of 1998, subject to
regulatory approvals, the approval of Piper Jaffray Companies shareholders, and
customary closing conditions.
U.S. Bancorp is a multi-state bank holding company headquartered in Minneapolis,
Minnesota, with a geographic service area spanning 17 states. As of September
30, 1997, U.S. Bancorp was the 15th largest U.S. commercial bank holding
company, with assets of approximately $70 billion. U.S. Bank National
Association (U.S. Bank), a wholly owned subsidiary of U.S. Bancorp, currently
acts as the investment advisor to 32 mutual funds in the First American Funds
family. As of December 31, 1997, U.S. Bank, acting through its First American
Asset Management group, managed more than $55 billion in assets, including
approximately $20.5 billion in assets of the First American Funds.
Under the Investment Company Act of 1940, as amended, the acquisition of Piper
Jaffray Companies by U.S. Bancorp will result in the automatic termination of
the Piper funds' investment advisory agreements with Piper Capital and the
sub-advisory agreements between Piper Capital and Edinburgh Fund Managers plc
relating to Emerging Markets Growth Fund and Pacific-European Growth Fund.
Consequently, subject to approval by the funds' board of directors, it is
anticipated that fund shareholders will be asked to approve new advisory
agreements and, if applicable, sub-advisory agreements containing the same fees
and other substantive terms as the current agreements. Fund shareholders also
may be asked to vote on other matters, including the possible combination of one
or more of the funds into one or more of the First American Funds.
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PIPER FUNDS 222 South Ninth Street
Minneapolis, MN 55402-3804 Toll Free 800 866-7778
