FILED PURSUANT TO RULE 497(e)
REGISTRATION FILE NO. 33-46407
January 17, 1995
FIRST PRAIRIE MUNICIPAL BOND FUND
Supplement to Prospectus Dated June 27, 1994
The following information supplements and supersedes
any
contrary information contained in the Prospectus.
The Fund's investment adviser is First Chicago
Investment
Management Company ("FCIMCO"), a newly formed registered,
investment adviser and a wholly-owned subsidiary of The First
National Bank of Chicago. FCIMCO employs substantially all the
investment personnel who previously provided advisory services to
the Fund. The Fund's administrator is Concord Holding
Corporation
(the "Administrator"). The Administrator, located at 125 West
55th
Street, New York, New York 10019, currently provides
administrative
or sub-administrative services to other investment companies with
over $31 billion in assets.
The Fund has agreed to pay FCIMCO a monthly advisory
fee
at the annual rate of .40% of the value of the Fund's average
daily
net assets. The Fund has agreed to pay the Administrator a
monthly
administration fee at the annual rate of .15% of the value of the
Fund's average daily net assets.
The Fund's distributor is Concord Financial Group, Inc.
Concord Financial Group, Inc., located at 125 West 55th Street,
New
York, New York 10019, is a wholly-owned subsidiary of the
Administrator and currently distributes the shares of other
investment companies with over $21 billion in assets.
Insured Series--Effective on or about January 27, 1995, the
Insured
Series will no longer be required to invest at least 65% of its
total assets in Municipal Obligations that are insured as to
timely
payment of principal and interest by recognized insurers of
Municipal Obligations. The Series will continue to invest in
Municipal Obligations rated at least investment grade by a
nationally recognized statistical rating organization. In
addition, effective on such date, the Insured Series is expected
to
be the only series of the Fund and will adopt the Fund's name,
which will be changed to Prairie Municipal Bond Fund, Inc.
Intermediate Series--The Fund's Board has approved, subject to
shareholder approval, the reorganization of the Intermediate
Series
as a separate series of Prairie Funds named Intermediate
Municipal
Bond Fund (the "New Series"). Prairie Funds is a newly-formed
registered investment company. If the transaction is
consummated,
former Intermediate Series shareholders will receive the same
number of shares of the New Series as they owned of the
Intermediate Series immediately before the transaction was
consummated. These shares initially will have the same net asset
value as the shares of the Intermediate Series owned before the
transaction was consummated. The transaction is expected to be
tax
free for Federal income tax purposes. If the transaction is
consummated, the Intermediate Series will be liquidated and its
existence terminated. Consummation of the transaction is
anticipated to occur on or about January 27, 1995.
