RANSON MANAGED PORTFOLIOS
485BPOS, 1997-11-28
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                                              1933 Act Registration No. 33-36324
                                              1940 Act Registration No. 811-6153

                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                   Form N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT          /__ /
  OF 1933
     Pre-Effective Amendment No. ____                    /__ /
   
     Post-Effective Amendment No. 34                     / X /    

                                    and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY     /__ /
  ACT OF 1940
     Amendment No. 36                                   / X /    

                           Ranson Managed Portfolios
              (Exact Name of Registrant as Specified in Charter)

                    1 North Main, Minot, North Dakota 58703
                   (Address of Principal Executive Offices)

Registrant's Telephone Number, including Area Code:  (701) 852-5292

                         Robert E. Walstad
                         Ranson Managed Portfolios
                         1 North Main
                         Minot, North Dakota 58703

                    (Name and Address of Agent for Service)

        
It is proposed that this filing will be effective (check appropriate box):

        / X /   immediately upon filing pursuant to paragraph (b)
        /__ /   on (date) pursuant to paragraph (b)
        /__ /   60 days after filing pursuant to paragraph (a)
        /__ /   on (date) pursuant to paragraph (a), of Rule 485

Declaration Pursuant to Rule 24f-2
   
Pursuant to the provisions of Rule 24f-2 under the Investment Company Act of
1940, Registrant has elected to register an indefinite number of shares and
filed its Rule 24f-2 Notice for the fiscal year ended July 31, 19967with the
Commission on or about January 31, 1998.     

                           RANSON MANAGED PORTFOLIOS

                     The Kansas Insured Intermediate Fund

                             Cross Reference Sheet

           Pursuant to Rule 495(a) under the Securities Act of 1933

<TABLE> 
<CAPTION> 

Form N-1A, Part A, Item Number                      Heading in Prospectus
- - ------------------------------                      ---------------------

<S>  <C>                                           <C> 
  1  Cover Page                                     Cover

  2  Synopsis                                       Highlights of the Fund and Prospectus Summary; 
                                                    Fee and Expense Table

  3  Condensed Financial Information                Condensed Financial Information; Calculation 
                                                    of Fund Performance Data

  4  General Description of Registrant              The Fund; Investment Objective and Policies

  5  Management of the Fund                         The Fund; Dividends and Taxes; Fund Management

  6  Capital Stock and Other Securities             Description of Shares and Rights

  7  Purchase of Securities Being Offered           Special Programs; Purchase of Shares

  8  Redemption or Repurchase                       Redemption of Shares

  9  Pending Legal Proceedings                      *


Form N-1A, Part B, Item Number                      Heading in Statement of Additional Information
- - ------------------------------                      ----------------------------------------------

 10  Cover Page                                     Cover

 11  Table of Contents                              Table of Contents

 12  General Information and History                The Fund and Its Shares

 13  Investment Objectives and Policies             Investment Objective, Policies and Restrictions

 14  Management of the Fund                         Officers and Trustees

 15  Control Persons and Principal Holders          The Fund and Its Shares
     of Securities

 16  Investment Advisory and Other Services         Management and Investment Advisory Agreement

 17  Brokerage Allocation and Other Practices       Portfolio Transactions
               
 18  Capital Stock and Other Securities             Additional Information Regarding Shares and Rights
</TABLE> 

                                      -i-

<TABLE> 
<CAPTION> 
 
Form N-1A, Part B, Item Number                      Heading in Statement of Additional Information
- - ------------------------------                      ----------------------------------------------

<S>  <C>                                           <C>      
  19  Purchase, Redemption and Pricing              Net Asset Value, in Prospectus;
      of Shares Being Offered                       Purchase of Shares, in Prospectus;
                                                    Redemption of Shares, in Prospectus

  20  Tax Status                                    Dividends and Taxes, in Prospectus

  21  Underwriters                                  Purchase of Shares, in Prospectus;
                                                    The Distributor, in Prospectus

  22  Calculations of Performance Data              Performance Data

  23  Financial Statements                          Financial Statements


Form N-1A, Part C, Item Number                      Heading in Other Information
- - ------------------------------                      ----------------------------

  24  Financial Statements and Exhibits             Financial Statements and Exhibits

  25  Persons Controlled by or Under                Persons Controlled by or Under
      Common Control with Registrant                Common Control with Registrant

  26  Number of Holders of Securities               Number of Holders of Securities

  27  Indemnification                               Indemnification

  28  Business and Other Connections of             Business and Other Connections of
      Investment Adviser                            Investment Advisor

  29  Principal Underwriters                        Principal Underwriters

  30  Location of Accounts and Records              Location of Accounts and Records

  31  Management Services                           Management Services

  32  Undertakings                                  Undertakings


_____________________
*Not applicable.
</TABLE> 
                                     -ii-

[LOGO OF THE KANSAS INSURED INTERMEDIATE FUND]

                           Ranson Managed Portfolios
                     THE KANSAS INSURED INTERMEDIATE FUND
    1 North Main  Minot, North Dakota 58703  (701) 857-0230  (800) 601-5593

   
Prospectus                                               November 28, 1997    

      The Kansas Insured Intermediate Fund is an investment portfolio of Ranson
Managed Portfolios which is an unincorporated business trust organized under the
laws of Massachusetts on August 10, 1990. Ranson Managed Portfolios is an open-
end series non-diversified management company, known as a mutual fund. The term
"the Fund" as used herein refers to either Ranson Managed Portfolios or The
Kansas Insured Intermediate Fund Series of Ranson Managed Portfolios, as the
context may require. The investment objective of the Fund is to provide its
shareholders with as high a level of current income that is exempt from both
federal income tax and Kansas income tax as is consistent with preservation of
capital. In pursuit of this objective, the Fund invests at least 95% of its
total assets in Kansas Municipal Securities (as defined herein) which are either
covered by insurance guaranteeing the timely payment of principal and interest
thereon or backed by an escrow or trust account containing sufficient U.S.
Government or U.S. Government agency securities to ensure timely payment of
principal and interest. Kansas Municipal Securities backed by an escrow or trust
account will not constitute more than 15% of the Fund's total assets. A
substantial portion of the income produced by the Fund may be includable in the
calculation of alternative minimum taxable income. Shares of the Fund,
therefore, would not ordinarily be a suitable investment for investors who are
subject to the alternative minimum tax.

      A maximum sales load of 2.75% will be imposed on purchases (2.83% of the
net amount invested). The minimum initial investment is $1,000. See "Purchase of
Shares."

      Ranson Capital Corporation (the "Manager") is the Fund's manager. ND
Resources, Inc., (the "Transfer Agent"), serves as the Fund's transfer agent.
First Western Bank & Trust ("Custodian"), is the Fund's custodian. For more
information concerning the Transfer Agent and the Custodian, see "Shareholder
Services and Reports."

     SHARES OF THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK AND ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.

     READ AND RETAIN THIS PROSPECTUS FOR FUTURE REFERENCE. THE PROSPECTUS
CONCISELY SETS FORTH INFORMATION INVESTORS SHOULD KNOW BEFORE INVESTING IN THE
FUND.
   
     A Statement of Additional Information dated November 28, 1997, regarding
the Fund (which is incorporated herein by reference) has been filed with the
Securities and Exchange Commission and is available upon request and without
charge by writing the Fund at the above mailing address or by telephoning the
Manager at either of the numbers set forth above.     

     THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.     

 
                             FEE AND EXPENSE TABLE

     The following table sets forth (i) the non-recurring shareholder
transaction expenses, (ii) the recurring annual Fund operating expenses and
(iii) the estimated expenses paid directly and indirectly by a shareholder with
a hypothetical $1,000 investment that is subject to the maximum sales load over
1, 3, 5 and 10-year periods.

     The example should not be considered a representation of past or future
expenses. Actual expenses may be greater or lesser than those shown.

Shareholder Transaction Expenses 
Maximum Sales Load Imposed on Purchases (as a percentage 
of offering price)                                                  2.75%

     There is no sales charge on reinvested dividends, deferred sales charge,
redemption fee or exchange fee. The maximum sales load may be reduced or
eliminated as described in "Purchase of Shares" and "Special Programs."

   
Annual Fund Operating Expenses
(as a percentage of average net assets)    The Kansas Insured Intermediate Fund
                                                  Expenses After Reimbursements
Management Fees                                              0.50%
Other Expenses                                               0.25%
                                                             ----
        Total Fund Operating Expenses                        
           (after reimbursements)                            0.75%
                                                             =====    

<TABLE>
<CAPTION>
Example
                                                  1 Year  3 Years  5 Years  10 Years
                                                  ------  -------  -------  --------
<S>                                               <C>     <C>      <C>      <C>
Shareholders would pay the following expenses
   after expense reimbursements
   on a $1,000 investment, assuming a 5%
   annual return:                                   $35     $50      $68      $99
</TABLE> 
   
     The purpose of this table is to assist the investor in understanding the
various costs and expenses that an investor in the Fund will bear directly or
indirectly. The calculation presumes expenses for the current year at the
projected rate of .75% for the Fund after reimbursement of certain expenses by
the Manager. Management Fees, Other Expenses and Total Fund Operating Expenses
for the Fund are estimated to be .50%, .50% and 1.00% before expense
reimbursements. These costs and expenses and the degree of expense
reimbursement and fee waiver, if any, may be greater or less in the future. See
"Purchase of Shares" for information relating to sales load discounts and "Fund
Management" for the level of management fees.     


                                       2

                 HIGHLIGHTS OF THE FUND AND PROSPECTUS SUMMARY

     The highlights and summary information below should be read in conjunction
with the detailed information appearing elsewhere in this Prospectus.

     THE INVESTMENT OBJECTIVE of the Fund is to provide its shareholders with as
high a level of current income that is exempt from both federal income tax and
Kansas income tax as is consistent with preservation of capital. There is no
assurance that the Fund's investment objective will be achieved. See "Investment
Objective and Policies - Investment Objective."

     THE INVESTMENT POLICY of the Fund is to invest substantially all (at least
95%) of its total assets in Kansas Municipal Securities (as defined herein)
which are either covered by insurance guaranteeing the timely payment of
principal and interest thereon or backed by an escrow or trust account
containing sufficient U.S. Government or U.S. Government agency securities to
ensure timely payment of principal and interest. Kansas Municipal Securities
backed by an escrow or trust account will not constitute more than 15% of the
Fund's total assets. See "Investment Objective and Policies - Kansas Municipal
Securities" for a description of Kansas Municipal Securities. Under normal
market conditions, the Fund will maintain a dollar weighted average maturity of
no more than 10 years and no less than 3 years. In certain circumstances the
Fund may enter into when-issued or delayed delivery transactions and purchase
taxable securities. The Fund may, for hedging purposes, enter into financial
futures contracts, options on such futures, municipal bond index futures
contracts and options on securities. These investments entail certain risks. See
"Investment Objective and Policies - Future Contracts and Options." The interest
on certain Kansas Municipal Securities in the Fund's portfolio may constitute an
item of preference for determining the federal alternative minimum tax for
individuals and corporations. See "Dividends and Taxes."

     THE FUND'S SHARES MAY BE PURCHASED through Ranson Capital Corporation and
selected dealers at the public offering price, which is equal to the net asset 
value next determined, plus a sales charge of 2.75% of the public offering price
(2.83% of the net amount invested). See "Purchase of Shares."
    
     THE MINIMUM INITIAL INVESTMENT is $1,000, and the minimum additional
investment is $50. See "Purchase of Shares." The initial and minimum investments
will be less under certain conditions described under "Purchase of Shares" and
"Special Programs."     

     AN OPEN ACCOUNT PROGRAM will be established for each investor unless the
investor elects not to participate in such program as is provided under
"Purchase of Shares - Open Account Program/Certificates."

     SPECIAL PROGRAMS of the Fund include: a reinvestment program for those who
have invested in any Series of The Kansas Tax-Exempt Trust; a group program; a
systematic withdrawal program; a preauthorized investment program; a rights of
accumulation program; and a reinstatement privilege. See "Special Programs."

     DISTRIBUTIONS for the Fund will be declared daily from net investment
income and will be paid monthly; net capital gains, if any, will be distributed
at least annually. See "Dividends and Taxes."

                                       3

CONFIRMATION STATEMENTS will be sent to all investors who have had purchase
or redemption activity in their accounts.

     REDEMPTIONS can be made at net asset value without charge. The Fund may
require redemption of shares if the value of an account is reduced to $1,000 or
less (for any reason other than fluctuations in the market value of the Fund's
portfolio securities). See "Redemption of Shares." Ranson Capital Corporation
will act as the Fund's Evaluator. See "Net Asset Value."

      THE FUND'S MANAGER AND INVESTMENT ADVISER is Ranson Capital Corporation
(the "Manager") which receives a monthly management and investment advisory fee
equivalent on an annual basis to .50 of 1% of the Fund's average daily net
assets. Under the terms of the Management and Investment Advisory Agreement
between the Fund and the Manager, the Manager pays all expenses of the Fund,
including the Fund's management and investment advisory fee and the Fund's
dividend disbursing, administrative and accounting services fees (but excluding
taxes and brokerage fees and commissions, if any) that exceed .75% of the Fund's
average daily net assets on an annual basis. The Manager may assume additional
Fund expenses or waive portions of its fees in its discretion. See "Fund
Management." The procedures of the Evaluator and its valuations are reviewed by
the officers of the Fund under the general supervision of the Board of Trustees.
See "Net Asset Value."

      RISK FACTORS: The Fund is subject to the risks of primarily concentrating
its investments in Kansas Municipal Securities and does not have the benefit of
geographical investment diversification (see "Investment Objective And
Policies"). Also, as a non-diversified investment company, the Fund has the
ability to concentrate investments in particular issuers which may be
advantageous when investing in Kansas Municipal Securities, but which involves
an increased risk of loss to the Fund should an issuer be unable to make
interest or principal payments or should the market value of such securities
decline. The Fund has the ability to purchase new issues of Kansas Municipal
Securities on a "when-issued" basis as well as outstanding issues on a delayed
delivery basis, both of which involve the potential risk of loss of principal.
In the event either that the value of such securities to be purchased declines
prior to the settlement date or if such securities should ultimately not be
issued or delivered and the price of comparable securities has increased, the
cost of substitute securities having comparable par amounts, ratings and yields
will be greater than was originally contracted for. A substantial portion of the
Kansas Municipal Securities in the Fund's portfolio may derive their payment
from mortgage loans or from hospitals and other health care facilities, both of
which entail certain risks (see "Investment Objective and Policies--Kansas
Municipal Securities"). The Fund may from time to time invest in participations
in municipal leases. Municipal leases are less liquid than many other municipal
securities and therefore will be subject to the risks of illiquidity referred to
in the next paragraph. Also, municipal leases are subject to the risk of "non-
appropriation" which allows the municipal lessee to terminate the lease and
eliminate its obligation to continue to make lease payments (see "Investment
Objective and Policies--Kansas Municipal Securities").

     An investment in the Fund should be made with an understanding that the
value of the underlying portfolio may decline with increases in interest
rates. In recent years there have been wide fluctuations in interest rates and
thus in the value of fixed-rate, debt obligations generally. The Manager cannot
predict whether these fluctuations will continue in the future. The principal
trading market for the Kansas Municipal Securities will generally be in the 
over-the-counter market. As a result, the existence of a liquid trading market
for the Kansas

                                       4

Municipal Securities may depend on whether dealers will make a market in such
securities. There can be no assurance that a market will be made for any of the
Kansas Municipal Securities, that any market for the Kansas Municipal Securities
will be maintained or of the liquidity of the Kansas Municipal Securities in any
markets made. In addition, certain of the Kansas Municipal Securities may be
subject to extraordinary optional and/or mandatory redemptions at par if certain
events should occur. To the extent securities were purchased at a price in
excess of the par value thereof and are subsequently redeemed at par as a result
of an extraordinary redemption, the Fund would suffer a loss of principal.

     The Fund may invest in financial futures contracts and related options
thereon for hedging purposes. A risk in employing futures contracts to protect
against the price volatility of portfolio securities is that the prices of
securities subject to futures contracts may not correlate perfectly with the
behavior of the cash prices of the Fund's portfolio securities. The risk of
imperfect correlation may be increased by the fact that the Fund may trade in
futures contracts on taxable securities, and there is no guarantee that the
prices of taxable securities will move in a manner similar to the prices of tax-
exempt securities. Another risk is that the Manager could be incorrect in its
expectations as to the direction or extent of various interest rate movements or
the time span within which the movements take place. For example, if the Fund
sold futures contracts in anticipation of an increase in interest rates, and
then interest rates went down, causing bond prices to rise, the Fund would lose
money and incur transaction costs on the sale.

      INVESTORS MAY CALL (800) 601-5593 for daily yield and daily net asset
value quotations. For information on account balances, call (800) 601-5593.

                                       5

   
                        CONDENSED FINANCIAL INFORMATION
                      SELECTED PER SHARE DATA AND RATIOS
                (For a share outstanding throughout the period)

<TABLE>
<CAPTION>
                                                                                                           For the Period
                                                                                                           Since Inception
                                             For the         For the         For the         For the       (Nov. 23, 1992)
                                            Year Ended      Year Ended      Year Ended      Year Ended            to
                                           July 31, 1997   July 31, 1996   July 31, 1995   July 31, 1994    July 31, 1993
                                           -------------------------------------------------------------------------------
<S>                                        <C>             <C>             <C>             <C>              <C>
NET ASSET VALUE, BEGINNING OF PERIOD       $     12.19     $     12.04     $     11.92     $     12.24      $     11.59
                                           -------------------------------------------------------------------------------
Income from Investment Operations:
     Net investment income                 $       .53     $       .53     $       .54     $       .52      $       .32
     Net realized and unrealized gain
      (loss) on investments                        .04             .15             .12            (.30)             .65
                                           -------------------------------------------------------------------------------
        Total From Investment Operations   $       .57     $       .68     $       .66     $       .22      $       .97
                                           -------------------------------------------------------------------------------
Less Distributions:
     Dividends from net investment income  $      (.53)    $      (.53)    $      (.54)    $      (.52)     $      (.32)
     Distributions from net capital gains          .00             .00             .00            (.02)             .00
                                           -------------------------------------------------------------------------------
        Total Distributions                $      (.53)    $      (.53)    $      (.54)    $      (.54)     $      (.32)
                                           -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD             $     12.23     $     12.19     $     12.04     $     11.92      $     12.24
                                           ===============================================================================
Total Return                               4.76%(A)        5.75%(A)        5.72%(A)        1.81%(A)         13.50%(A)(B)

RATIOS/SUPPLEMENTAL DATA:
     Net assets, end of period
      (in thousands)                       $25,533         $30,564         $30,678         $31,216          $22,110 
     Ratio of net expenses (after
      expense assumption) to average
      net assets                           0.76%(C)        0.69%(C)        0.62% (C)       0.51% (C)        0.33%(B)(C)
     Ratio of net investment income to
      average net assets                   4.33%           4.37%           4.57%           4.26%            4.41%(B)
     Portfolio turnover rate              28.68%          19.96%          63.00%          56.00%          152.00%
</TABLE>

(A)  Excludes maximum sales charge of 2.75%.
(B)  Ratio was annualized.
(C)  During the periods indicated above, ND Holdings, Inc. or Ranson Capital
     Corporation assumed expenses of  $40,608, $71,943, $112,745, $136,079 ,
     and $68,286, respectively. If the expenses had not been assumed, the
     annualized ratios of total expenses to average net assets would have been
     0.90%, 0.92%, 0.98%, 0.99%, and 1.24%, respectively.     

                                       6

                                   THE FUND
   
     Ranson Managed Portfolios is an unincorporated business trust organized
under the laws of Massachusetts on August 10, 1990. It is an open-end non-
diversified series management investment company or "mutual fund." The Kansas
Insured Intermediate Fund is one of five portfolios or series (the "Series")
available at this time. Like other mutual funds, the Fund sells its shares to
investors and uses the proceeds to invest in various securities as described in
this Prospectus. The Fund is subject to the overall direction and monitoring
function of the Board of Trustees (the "Trustees").
    
   

     Information regarding the Fund is available by telephoning or writing the
Fund at the phone number or address shown on the front cover of this Prospectus.


                       INVESTMENT OBJECTIVE AND POLICIES

Investment Objective

     The investment objective of the Fund is to provide its shareholders with as
high a level of current income that is exempt from both federal income tax and
Kansas income tax as is consistent with preservation of capital. The Fund seeks
to achieve its investment objective by investing at least 95% of its total
assets in Kansas Municipal Securities (as further described below) which are
either covered by insurance guaranteeing the timely payment of principal and
interest thereon or backed by an escrow or trust account containing sufficient
U.S. Government or U.S. Government agency securities to ensure timely payment of
principal and interest. Kansas Municipal Securities backed by an escrow or trust
account will not constitute more than 15% of the Fund's total assets. Kansas law
provides that to the extent dividends paid by the Fund are derived from Kansas
Municipal Securities, they shall be exempt from Kansas income tax.

     A shareholder will receive taxable income in the event of capital gains
distributions by the Fund. In addition, the Fund has not established any limit
on the percentage of its portfolio that may be invested in Kansas Municipal
Securities subject to the alternative minimum tax provisions of federal tax law,
and a substantial portion of the income produced by the Fund may be includable
in the calculation of alternative minimum taxable income. Shares of the Fund
therefore would not ordinarily be a suitable investment for investors who are
subject to the alternative minimum tax. The suitability of shares of the Fund
for these investors will depend upon a comparison of the yield likely to be
provided from the Fund with the yield from comparable tax-exempt investments not
subject to the alternative minimum tax, and with the yield from comparable fully
taxable investments, in light of each such investor's tax position.

     Under normal market conditions, the Fund will maintain a dollar weighted
average maturity of no more than 10 years and no less than 3 years.

Kansas Municipal Securities

    
   
     As used in this Prospectus, the term "Kansas Municipal Securities" refers
to debt obligations the interest payable on which is, in the opinion of bond
counsel to the issuer, exempt from both federal income taxation and Kansas
income taxation. The Term "Kansas Municipal Securities" also includes
obligations of the Commonwealth of Puerto Rico, the United States Virgin Islands
and Guam. The Fund will not invest more than 

                                       7

15% of its total assets in Kansas Municipal Securities which are obligations of
the Commonwealth of Puerto Rico, the United States Virgin Islands or Guam. 
Kansas Municipal Securities include debt obligations of Kansas, its political 
subdivisions, municipalities, agencies and authorities issued to obtain funds 
for various public purposes, including the construction or improvement of a wide
range of public facilities such as airports, bridges, highways, hospitals,
housing, jails, mass transportation, nursing homes, parks, public buildings,
recreational facilities, school facilities, streets and water and sewer works.
Other public purposes for which Kansas Municipal Securities may be issued 
include the refunding of outstanding obligations, the anticipation of taxes or
state aids, the payment of judgments, the funding of student loans, community
redevelopment, the purchase of street maintenance and firefighting equipment or
any authorized corporate purpose of the issuer except for the payment of current
expenses. In addition, certain types of industrial development and other revenue
bonds may be issued by or on behalf of public corporations to finance privately
operated housing facilities, air or water pollution control facilities and 
certain local facilities for water supply, gas, electricity or sewage or solid
waste disposal.  Other types of industrial development bonds, the proceeds of 
which are used for the construction, equipping, repair or improvement of 
privately operated industrial, commercial or office facilities, constitute 
Kansas Municipal Securities, although current federal income tax laws place 
substantial limitations on the size of such issues.     

     Since the Fund will invest substantially all of its assets in Kansas
Municipal Securities, the Fund is susceptible to political and economic factors
affecting issuers of Kansas Municipal Securities. As of 1994, 2,554,047 people
lived in Kansas. Based on these numbers, Kansas ranked thirty-first in the
nation in population size. Based on statistics provided by the Kansas Department
of Commerce, Kansas ranked twenty-first in the nation in terms of per capita
income. Historically, agriculture and mining constituted the principal
industries in Kansas. Since the 1950's, however, manufacturing, governmental
services and the services industry have steadily grown and as of 1994
approximately 24% of Kansas workers were in the trade (wholesale and retail)
sector, 24% in the services sector, 20% in the government sector, 16% in the
manufacturing sector, while financial and real estate, farming, mining,
transportation and public utilities and construction accounted for the remaining
16% of the work force. The August 1996 unemployment rate was 4%. By
constitutional mandate, Kansas must operate within a balanced budget and public
debt may only be incurred for extraordinary purposes and then only to a maximum
of $1 million. As of November 15, 1996, Kansas had no general obligation bonds
outstanding.

     Over 25% of the Kansas Municipal Securities in the Fund's portfolio may be
health care revenue bonds. Ratings of bonds issued for health care facilities
are sometimes based on feasibility studies that contain projections of occupancy
levels, revenues and expenses. A facility's gross receipts and net income
available for debt service may be affected by future events and conditions
including among other things, demand for services, the ability of the facility
to provide the services required, physicians' confidence in the facility,
management capabilities, competition with other hospitals, efforts by insurers
and governmental agencies to limit rates, legislation establishing state rate-
setting agencies, expenses, government regulation, the cost and possible
unavailability of malpractice insurance and the termination of restriction of
governmental financial assistance, including that associated with Medicare,
Medicaid and other similar third party payor programs. Pursuant to recent
federal legislation, Medicare reimbursements are currently calculated on a
prospective basis utilizing a single nationwide schedule of rates. Prior to such
legislation Medicare reimbursements were based on the actual costs incurred by
the health facility. The current legislation may adversely affect reimbursements
to hospitals and other facilities for services provided under the Medicare
program.

                                       8

     Over 25% of the Kansas Municipal Securities in the Fund's portfolio may
derive their payment from mortgage loans. Certain of the Kansas Municipal
Securities in the Fund's portfolio may be single family mortgage revenue bonds,
which are issued for the purpose of acquiring from originating financial
institutions notes secured by mortgages on residences located within the
issuer's boundaries and owned by persons of low or moderate income. Mortgage
loans are generally partially or completely prepaid prior to their final
maturities as a result of events such as sale of the mortgaged premises,
default, condemnation or casualty loss. Because these bonds are subject to
extraordinary mandatory redemption in whole or in part from such prepayments of
mortgage loans, a substantial portion of such bonds will probably be redeemed
prior to their scheduled maturities or even prior to their ordinary call dates.
The redemption price of such issues may be more or less than the offering price
of such bonds. Extraordinary mandatory redemption without premium could also
result from the failure of the originating financial institutions to make
mortgage loans in sufficient amounts within a specified time period or, in some
cases, from the sale by the bond issuer of the mortgage loans. Failure of the
originating financial institutions to make mortgage loans would be due
principally to the interest rates on mortgage loans funded from other sources
becoming competitive with the interest rates on the mortgage loans funded with
the proceeds of the single family mortgage revenues available for the payment of
the principal of or interest on such mortgage revenue bonds. Single family
mortgage revenue bonds issued after December 31, 1980, were issued under Section
103A of the Internal Revenue Code, which Section contains certain ongoing
requirements relating to the use of the proceeds of such bonds in order for the
interest on such bonds to retain its tax-exempt status. In each case, the issuer
of the bonds has covenanted to comply with applicable ongoing requirements, and
bond counsel to such issuer has issued an opinion that the interest on the bonds
is exempt from federal income tax under existing laws and regulations. There can
be no assurances that the ongoing requirements will be met. The failure to meet
these requirements could cause the interest on the bonds to become taxable,
possibly retroactively from the date of issuance.

     Certain of the Kansas Municipal Securities in the Fund's portfolio may be
obligations of issuers whose revenues are primarily derived from mortgage loans
to housing projects for low to moderate income families. The ability of such
issuers to make debt service payments will be affected by events and conditions
affecting financed projects, including, among other things, the achievement and
maintenance of sufficient occupancy levels and adequate rental income, increases
in taxes, employment and income conditions prevailing in local labor markets,
utility costs and other operating expenses, the managerial ability of project
managers, changes in laws and governmental regulations, the appropriation of
subsidies and social and economic trends affecting the localities in which the
projects are located. The occupancy of housing projects may be adversely
affected by high rent levels and income limitations imposed under federal and
state programs. Like single family mortgage revenue bonds, multi-family mortgage
revenue bonds are subject to redemption and call features, including
extraordinary mandatory redemption features, upon prepayment, sale or non-
origination of mortgage loans as well as upon the occurrence of other events.
Certain issuers of single or multi-family housing bonds have considered various
ways to redeem bonds they have issued prior to the stated first redemption dates
for such bonds. In one situation, the New York City Housing Development
Corporation, in reliance on its interpretation of certain language in the
indenture under which one of its bond issues was created, redeemed all of such
issue at par in spite of the fact that such indenture provided that the first
optional redemption was to include a premium over par and could not occur prior
to 1992.

     The Kansas Municipal Securities in which the Fund invests include Kansas
tax-exempt bonds, notes, commercial paper and participation interests in
municipal leases. Kansas tax-exempt notes and commercial paper are generally
used to provide for short-term capital needs and ordinarily have a maturity of
up to one

                                       9

year. These include notes issued in anticipation of tax revenue, revenue from
other government sources or revenue from bond offerings and short-term,
unsecured commercial paper, which is often used to finance seasonal working
capital needs or to provide interim construction financing. Kansas tax-exempt
leases are obligations of state and local government units incurred to lease or
purchase equipment or other property utilized by such governments. The Fund will
not originate leases as a lessor, but will instead purchase a participation
interest in the regular payment stream of the underlying lease from a bank,
equipment lessor or other third party. General obligation bonds are secured by
the issuer's pledge of its faith, credit and taxing power for the payment of
principal and interest. Revenue bonds are payable from the revenue derived from
a particular facility or class of facilities or, in some cases, from the
proceeds of a special excise or other specific revenue source, but not from the
general taxing power. Tax-exempt industrial development bonds are in most cases
revenue bonds and generally do not carry the pledge of the credit of the issuing
municipality. The revenues from which such bonds are paid generally constitute
an obligation of the corporate entity on whose behalf the bonds are issued.

     Although the participations in municipal leases which the Fund may purchase
(hereinafter called "lease obligations") do not constitute general obligations
of the municipality for which the municipality's taxing power is pledged, a
lease obligation lease is ordinarily backed by the municipality's covenant to
budget for, appropriate and make the payments due under the lease obligation.
However, certain lease obligations contain "non-appropriation" clauses which
provide that the municipality has no obligation to make lease payments in future
years unless money is appropriated for such purpose on a yearly basis. In
addition to the "non-appropriation" risk, these securities represent a
relatively new type of financing that has not yet developed the depth of
marketability associated with more conventional bonds. Although "non-
appropriation" lease obligations are secured by the leased property, disposition
of the property in the event of foreclosure might prove difficult. The Fund will
only purchase lease obligations which are rated in the top rating category by
either Standard & Poor's Corporation or Moody's Investor Service, Inc. The Fund
will not invest more than 10% of its net investment assets in lease obligations
(including, but not limited to those lease obligations which contain "non-
appropriation clauses") or any other illiquid securities.

     The Fund will only purchase lease obligations which are covered by an
existing opinion of legal counsel experienced in municipal lease transactions
that, as of the date of issue or purchase of each participation interest in a
municipal lease, the interest payable on such obligation is exempt from both
federal income tax and Kansas income tax and that the underlying lease was the
valid and binding obligation of the governmental issuer.

Investment Policies

     It is a fundamental policy of the Fund, which may not be changed without
the approval of the majority of the Fund's shares, that under normal
circumstances at least 95% of the Fund's total assets will be invested in Kansas
Municipal Securities which are either covered by insurance guaranteeing the
timely payment of principal and interest thereon or backed by an escrow or trust
account containing sufficient U.S. Government or U.S. Government agency
securities to ensure timely payment of principal and interest. Kansas Municipal
Securities backed by an escrow or trust account will not constitute more than
15% of the Fund's total assets. While the Fund attempts, under normal market
conditions, to invest all of its assets in Kansas Municipal Securities, the Fund
may temporarily invest up to 100% of its total assets in taxable fixed-income
securities or hold up to 100% of its total assets in cash during periods of
abnormal market conditions that dictate taking a

                                      10

defensive posture by investing in such taxable obligations or cash. In addition,
pending the investment or reinvestment in Kansas Municipal Securities of
proceeds of sales of shares or sales of portfolio securities or in order to
avoid the necessity of liquidating portfolio investments to meet shareholders'
redemption requests, the Fund may invest up to 20% of its total assets in
taxable fixed income securities or cash.

     Taxable obligations which the Fund may purchase for temporary liquidity
purposes, or for temporary defensive purposes, may include: obligations of the
U.S. Government, its agencies or instrumentalities; other debt securities of
issuers having, at the time of purchase, a rating within the highest grade of
Moody's or S & P; commercial paper rated P-1 or better by Moody's or A-1 or
better by S & P; certificates of deposit of domestic banks, including foreign
branches of domestic banks, which have capital, surplus and undivided profits of
over $100 million; time deposits; bankers' acceptances, repurchase agreements
and obligations of Kansas with respect to any of the foregoing investments.
Interest earned from taxable obligations will be taxable to investors, except
that interest earned from certain taxable Kansas obligations will be exempt from
Kansas income tax.

     The Kansas Municipal Securities which the Fund may purchase include
floating and variable rate demand notes from municipal and nongovernmental
issuers. These notes normally have a stated maturity in excess of one year but
permit the holder to demand payment of principal plus accrued interest upon a
specified number of days' notice. Frequently, such obligations are secured by
letters of credit or other credit support arrangements provided by banks. Use of
letters of credit or other credit support arrangements will generally not
adversely affect the tax-exempt status of these obligations. The Manager will
rely upon the opinion of the issuer's bond counsel to determine whether such
notes are exempt from federal and Kansas income taxation. The issuer of floating
and variable rate demand notes normally has a corresponding right, after a given
period, to prepay in its discretion the outstanding principal amount of the note
plus accrued interest upon a specified number of days' notice to the
noteholders. The interest rate on a floating rate demand note is based on a
known lending rate, such as a bank's prime rate, and is adjusted automatically
each time such rate is adjusted. The interest rate on a variable rate demand
note is adjusted at specified intervals, based upon a known lending rate. The
Manager will monitor the creditworthiness of the issuers of floating and
variable rate demand notes. The Fund will not invest in derivative financial
instruments other than in connection with its hedging activities.

     The yields on Kansas Municipal Securities are dependent on a variety of
factors, including general money market conditions, the financial condition of
the issuer, general conditions of the Kansas tax-exempt obligation market, the
size of a particular offering, the maturity of the obligation and the rating of
the issue or issuer. The ratings of Moody's and S&P represent their opinions as
to the quality of the Kansas Municipal Securities which they undertake to rate.
It should be emphasized, however, that ratings are general, and not absolute,
standards of quality. Consequently, Kansas Municipal Securities of the same
maturity, interest rate and rating may have different yields, while Kansas
Municipal Securities of the same maturity and interest rate with different
ratings may have the same yield. Subsequent to their purchase by the Fund,
particular Kansas Municipal Securities or other investments may cease to be
rated or their ratings may be reduced below the minimum rating required for
purchase by the Fund.

     The Fund is a non-diversified investment company, but intends to comply
with Subchapter M of the Internal Revenue Code. Because of the relatively small
number of issuers of Kansas Municipal Securities in which the Fund may invest,
the Fund will probably use its ability as a non-diversified fund to concentrate
its assets in the securities of certain issuers which the Fund's Manager deems
to be attractive investments, rather than invest in securities of a large number
of issuers merely to satisfy diversification requirements. Although the Fund's

                                      11

Manager believes that the ability to concentrate the investments of the Fund in
particular issuers is advantageous when investing in Kansas Municipal
Securities, such concentration involves an increased risk of loss to the Fund
should the issuer be unable to make interest or principal payments or should the
market value of such securities decline. Investment in a non-diversified
investment company such as the Fund may therefore entail greater risks than
investment in a "diversified" fund.

     Each insured Kansas Municipal Security held by the Fund will be covered by
an insurance policy applicable to the specific security, whether obtained by the
issuer of the security or a third party at the time of original issuance
("Original Issue Insurance") or by the Fund or a third party subsequent to the
time of original issuance ("Secondary Market Insurance"). In any event, the Fund
will only purchase Kansas Municipal Securities insured by insurers having total
admitted assets of at least $75 million, capital and surplus of at least $50
million and claims-paying ability ratings of "Aaa" by Moody's Investors Service,
Inc. ("Moody's"), "AAA" by Standard & Poor's Corporation ("S&P"), "AAA" by Fitch
Investors Service, Inc. ("Fitch") or "AAA" by Duff & Phelps ("D&P"). The Fund
currently intends to obtain insurance policies only from mono-line insurers
specializing in insuring municipal debt. Kansas Municipal Securities covered by
Original Issue Insurance or Secondary Market Insurance are themselves assigned a
rating of "Aaa" or "AAA", as the case may be, by virtue of the "Aaa" or "AAA"
claims-paying ability of the insurer and would generally be assigned a lower
rating if the rating were based primarily upon the credit characteristics of the
issuer without regard to the insurance feature.

     The Fund's policy of investing in Kansas Municipal Securities insured by
insurers whose claims-paying ability is rated "Aaa" and "AAA" will apply only at
the time of the purchase of a security, and the Fund will not be required to
dispose of securities in the event Moody's, S&P, Fitch or D&P, as the case may
be, downgrades its assessment of the claims-paying ability of a particular
insurer or the credit characteristics of a particular issuer. In this
connection, it should be noted that in the event Moody's, S&P, Fitch or D&P or
all should downgrade their assessments of the claims-paying ability of a
particular insurer, such entity or entities could also be expected to downgrade
the ratings assigned to Kansas Municipal Securities insured under Original Issue
Insurance or Secondary Market Insurance issued by such insurer. Moody's, S&P,
Fitch and D&P continually assess the claims-paying ability of insurers and the
credit characteristics of issuers, and there can be no assurance that they will
not downgrade their assessments subsequent to the time the Fund purchases
securities. See "Bond Insurance" in the Fund's Statement of Additional
Information.

     In addition to insured Kansas Municipal Securities, the Fund may invest up
to 15% of the Fund's total assets in Kansas Municipal Securities rated "Aaa" or
"AAA" that are entitled to the benefit of an escrow or trust account which
contains securities issued or guaranteed by the U.S. Government or U.S.
Government agencies and backed by the full faith and credit of the United States
sufficient in amount to ensure the payment of interest and principal on the
original interest payment and maturity dates ("collateralized obligations").
Such collateralized obligations generally will not be insured and will include,
but are not limited to, Kansas Municipal Securities that have been (1) advance
refunded where the proceeds of the refunding have been used to purchase U.S.
Government or U.S. Government agency securities that are placed in escrow and
whose interest or maturing principal payments, or both, are sufficient to cover
the remaining scheduled debt service on the Kansas Municipal Securities, or (2)
issued under state or local housing finance programs which use the issuance
proceeds to fund mortgages that are then exchanged for U.S. Government or U.S.
Government agency securities and deposited with a trustee as security for the
Kansas Municipal Securities. Such collateralized obligations are normally
regarded as having the credit characteristics of the underlying U.S. Government
or U.S. Government agency securities.

                                      12

     The Fund may invest up to 10% of its total assets in the securities of
other investment companies. Any investment by the Fund in securities issued by
other investment companies will result in the duplication of certain fees and
expenses.

Futures Contracts and Options

     The Fund may invest in financial futures contracts ("futures contracts")
and related options thereon for hedging purposes. It is not the intent of the
Manager to speculate in futures contracts and related options as an aggressive
investment strategy, but rather as described below. The Fund may sell a futures
contract or a call option thereon or purchase a put option on such futures
contract, if the Manager anticipates that interest rates will rise, as a hedge
against a decrease in the value of the Fund's portfolio securities. If the
Manager anticipates that interest rates will decline, the Fund may purchase a
futures contract or a call option thereon or sell a put option on such futures
contract, to protect against an increase in the price of the securities the Fund
intends to purchase. These futures contracts and related options thereon will be
used only as a hedge against anticipated interest rate changes. A futures
contract sale creates an obligation by the Fund, as seller, to deliver the
specific type of instrument called for in the contract at a specified future
time for a specified price. Purchase of a futures contract creates an obligation
by the Fund, as purchaser, to take delivery of the specific type of financial
instrument at a specified future time at a specified price. A purchaser or
seller of a futures contract is required to make daily payments of cash to
reflect the change in the value of the underlying contract. The specific
securities delivered or taken, respectively, at settlement date would not be
determined until or near that date. The determination would be in accordance
with the rules of the exchange on which the futures contract sale or purchase
was effected.

     Although the terms of futures contracts specify actual delivery or receipt
of securities, in most instances the contracts are closed out before the
settlement date without the making or taking of delivery of the securities.
Closing out of a futures contract is effected by entering into an offsetting
purchase or sale transaction prior to the expiration of the contract.

     Unlike a futures contract, which requires the parties to buy and sell a
security on a set date unless offset, an option on a futures contract entitles
its purchaser to decide on or before a future date whether to enter into such a
contract (a long position in the case of a call option and a short position in
the case of a put option). If the purchaser decides not to enter into the
contract, the premium paid for the option on the contract is lost if it expires.
Since the cost of the option is fixed, there are no daily payments of cash by
the purchaser to reflect the change in the value of the underlying contract as
there are by a purchaser or seller of a futures contract. The seller of the
option, however, may be required to make daily maintenance margin payments to
reflect the change in value of the underlying contract. The value of the option
is reflected in the net asset value of the Fund.

     A risk in employing futures contracts to protect against the price
volatility of portfolio securities is that the prices of securities subject to
futures contracts may not correlate perfectly with the behavior of the cash
prices of the Fund's portfolio securities. The risk of imperfect correlation may
be increased by the fact that the Fund may trade in futures contracts on taxable
securities, and there is no guarantee that the prices of taxable securities will
move in a manner similar to the prices of tax-exempt securities. The correlation
may be distorted in part by the fact that the futures market is influenced by
short-term traders seeking to profit from the difference between a contract or
security price objective and their cost of borrowed funds. Such distortions
generally are minor and should diminish as the contract approaches maturity.

                                      13

     Another risk is that the Manager could be incorrect in its expectations as
to the direction or extent of various interest rate movements or the time span
within which the movements take place. For example, if the Fund sold futures
contracts in anticipation of an increase in interest rates, and then interest
rates went down, causing bond prices to rise, the Fund would lose money,
including transaction costs, on the sale.

     The Fund may not enter into futures contracts or purchase related options
thereon if immediately thereafter the amount committed to initial margin plus
the amount paid for premiums for unexpired options on futures contracts exceed
5% of the value of the Fund's total assets. Similarly, the Fund may not purchase
or sell futures contracts or related options thereon if, immediately thereafter,
more than one-third of its net assets would be hedged.

FORWARD COMMITMENTS 

     The Fund may purchase new issues of Kansas Municipal Securities and other
securities on a "when-issued" or delayed delivery basis, with delivery and
payment for the securities normally taking place within 45 days after the date
of the commitment to purchase. The payment obligation and the interest rate that
will be received on such securities are fixed at the time the buyer enters into
the commitment. The Fund may enter into such "forward commitments" if it holds,
and maintains until the settlement date in a segregated account with its
custodian, cash or high-grade, short-term obligations in an amount sufficient to
meet the purchase price. There is no percentage limitation on the Fund's total
assets which may be invested in forward commitments. Forward commitments involve
a risk of loss if the value of the Kansas Municipal Securities or other security
to be purchased declines prior to the settlement date, which risk is in addition
to the risk of decline in the value of the Fund's other assets. Although the
Fund will generally enter into forward commitments with the intention of
acquiring Kansas Municipal Securities or other securities for its portfolio, the
Fund may dispose of a commitment prior to settlement if the Manager deems it
appropriate to do so. The Fund may realize short-term profits or losses upon the
sale of forward commitments, which profits or losses may constitute capital
gains or ordinary income depending upon a number of factors, including the
number of sales of such commitments.

PORTFOLIO TURNOVER

     Portfolio transactions will be undertaken principally to accomplish the
Fund's objective in relation to anticipated movements in the general level of
interest rates, but the Fund may also engage in short-term trading consistent
with its objective. Securities may be sold in anticipation of a market decline
(a rise in interest rates) or purchased in anticipation of a market rise (a
decline in interest rates) and later sold. In addition, a security may be sold
and another purchased at approximately the same time to take advantage of what
the Manager believes to be a temporary disparity in the normal yield
relationship between the two securities. Yield disparities may occur for reasons
not directly related to the investment quality of particular issues or the
general movement of interest rates, due to such factors as changes in the
overall demand for or supply of various types of Kansas Municipal Securities or
changes in the investment objectives of investors.

     The Fund's investment policies may lead to frequent changes in investments,
particularly in periods of rapidly fluctuating interest rates. A change in
securities held by the Fund is known as "portfolio turnover" and may involve the
payment by the Fund of dealer mark-ups or underwriting commissions and other
transaction costs on the sale of securities, including Kansas Municipal
Securities, as well as on the reinvestment of the proceeds in other securities.
The Fund anticipates that its annual portfolio turnover rate will not exceed
75%. Portfolio turnover rate for a fiscal year is the ratio of the lesser of the
dollar amount of the purchases or sales of portfolio securities to the monthly
average of the value of portfolio securities--excluding securities whose

                                       14

maturities at acquisition were one year or less. The Fund's portfolio turnover
rate will not be a limiting factor when the Fund deems it desirable to sell or
purchase securities. Frequent changes in the Fund's portfolio securities may
result in higher transaction costs for the Fund. In addition, in order to
qualify as a regulated investment company under the Internal Revenue Code, the
Fund must limit the portion of its gross income derived from the sale or other
disposition of stock or securities held for less than three months. If the Fund
were unable to satisfy this condition, among others, the Fund would be subject
to tax on its taxable income without deduction for distributions to
shareholders. See "Dividends and Taxes" in this Prospectus and "Portfolio
Transactions" in the Fund's Statement of Additional Information.

REPURCHASE AGREEMENTS

     The Fund may enter into repurchase agreements with respect to not more than
10% of its total assets (taken at current value), except when investing for
temporary defensive purposes during times of adverse market conditions. A
repurchase agreement is a contract under which the Fund would acquire a security
for a relatively short period, and the seller would agree to repurchase such
security at the Fund's cost plus interest within a specified time (generally one
day). Under the Investment Company Act of 1940, repurchase agreements are
considered loans by the Fund. The Fund will not enter into any repurchase
agreement in an amount which would jeopardize the Fund's status as a regulated
investment company or its ability to distribute tax-exempt dividends. Although
the Fund may enter into repurchase agreements with respect to any securities
which it may acquire consistent with its investment policies and restrictions,
it is the Fund's present intention to enter into repurchase agreements only with
respect to obligations of the U.S. Government or its agencies or
instrumentalities and with respect to Kansas Municipal Securities. The Fund's
Custodian will hold the securities underlying any repurchase agreement in a
segregated account. In investing in repurchase agreements, the Fund's risk is
limited to the ability of the seller to pay the agreed-upon price at the
maturity of the repurchase agreement. In the opinion of the Manager, the risk is
not material, since in the event of default, barring extraordinary
circumstances, the Fund would be entitled to sell the underlying securities or
otherwise receive adequate protection under federal bankruptcy laws for its
interest in such securities. To the extent that proceeds from any sale upon a
default are less than the repurchase price, however, the Fund could suffer a
loss. In addition, the Fund may incur certain delays in obtaining direct
ownership of the collateral.

     The Fund's Board of Trustees may change any of the foregoing policies that
are not fundamental without an affirmative vote of a "majority of the Fund's
outstanding voting shares," as defined in "Investment Objective, Policies and
Restrictions" in the Fund's Statement of Additional Information.

                                NET ASSET VALUE

     The net asset value per share of the Fund is determined by calculating the
total value of the Fund's assets, deducting total liabilities, and dividing the
result by the number of shares outstanding. Fixed income securities for which
quotations are readily available are valued at the mean between the quoted bid
and asked price. Securities for which quotations are not readily available
(which will constitute a majority of the securities held by the Fund) are valued
at fair value as determined by Ranson Capital Corporation (the "Evaluator")
pursuant to procedures adopted by the Board of Trustees using methods which
include consideration of the following: yields or prices of municipal bonds of
comparable quality, type of issue, coupon, maturity and rating, indications as
to value from dealers and general market conditions. The Evaluator may employ
electronic data processing techniques and/or a matrix system to determine
valuations. The procedures utilized by the Evaluator and its valuations are
reviewed by the officers of the Fund under the general supervision of the Board
of Trustees and

                                       15

are periodically reviewed by the Board of Trustees. Short-term securities with
remaining maturities of less than 60 days are valued at amortized cost. Other
assets are valued at fair value as determined in good faith by the Trustees of
the Fund. The net asset value of the Fund is computed once daily as of 3:00 p.m.
Central time on each day that the New York Stock Exchange is open for trading.
The public offering price based thereon becomes effective as of the time of such
computation. The New York Stock Exchange is closed on weekends and on the
following days: New Year's Day, Washington's Birthday, Good Friday, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The Fund
reserves the right to calculate the net asset value and to adjust the public
offering price based thereon more frequently than once each day if deemed
desirable.

PURCHASE OF SHARES

     Shares may be purchased at the public offering price through any
securities dealer having a sales agreement with Ranson Capital Corporation (the
"Distributor"). Shares may also be purchased through banks and certain other
financial institutions that have agency agreements with the Distributor. These
financial institutions will receive transaction fees that are the same as
commissions to dealers and may charge their customers service fees relating to
investments in the Fund. Purchase requests should be addressed to the dealer or
agent from which this Prospectus was received which has a sales agreement with
the Distributor. Such dealer or agent may place a telephone order with the
Distributor for the purchase of Fund shares. It is a dealer's or broker's
responsibility to promptly forward payment and registration instructions (or
completed applications) to the Transfer Agent for shares being purchased in
order for investors to receive the next determined net asset value. Reference
should be made to the wire order to ensure proper settlement of the trade.
Payment must be received within seven days of the order or the trade may be
cancelled and the dealer or broker placing the trade will be liable for any
losses. The public offering price is the net asset value per share next
determined plus a sales charge that will be a percentage of the public offering
price and will vary as shown below. Current sales charge rates are:
<TABLE>
<CAPTION>                                                       Sales Charge
                                                                ------------
                                                    As a                              As a                        Dealer
                                                Percentage of                     Percentage of                  Allowance
                                                  Offering                       Net Asset Value             as Percentage of
<S>                                                 Price                           Invested                  Offering Price
Amount of Purchase                              -------------                    ---------------             ----------------
- - ------------------                                <C>                            <C>                         <C>
Less than $50,000                                   2.75%                             2.83%                        2.50%
$50,000 but less than $100,000                      2.25%                             2.30%                        2.00%
$100,000 but less than $250,000                     1.75%                             1.78%                        1.50%
$250,000 but less than $500,000                     1.25%                             1.27%                        1.10%
$500,000 but less than $1,000,000                   0.75%                             0.76%                        0.65%
$1,000,000 or more                                  0.25%                             0.25%                        0.25%
</TABLE>

     The minimum initial investment is $1,000, and there is a $50 minimum on all
additional investments (excluding reinvestment of dividends and capital gains).
The Fund reserves the right to redeem Fund accounts that are reduced to a value
of less than $1,000 (for any reason other than fluctuation in the market value
of the Fund's portfolio securities). Should the Fund elect to exercise this
right, the investor will be notified before such redemption is processed that
the value of the investor's account is less than $1,000 and that the investor
will have sixty days to increase the account to at least the $1,000 minimum
amount before the account is redeemed.     

                                       16

     Shares of the Fund may be sold at net asset value to the officers and
Trustees of the Fund, to any subsidiary companies of Ranson Capital Corporation
and to any employees of Ranson Capital Corporation or to members of their
immediate families. Immediate family members shall include spouses, children,
fathers, mothers, brothers or sisters. Shares of the Fund may also be sold at
their net asset value to broker-dealers having sales agreements with Ranson
Capital Corporation, and registered representatives and other employees of such
broker-dealers, including their spouses and children; to financial institutions
having sales agreements with Ranson Capital Corporation, and employees of such
financial institutions, including their spouses and children; and to any
broker-dealer, financial institution, or other qualified firm which receives no
commissions for selling shares to its clients.

     Financial institutions may purchase shares of the Fund for their own
account or as a record owner on behalf of fiduciary or custody accounts may
purchase shares of the Fund with a sales charge equal to .75% of the public
offering price (.76% of the net amount invested), which includes a dealer
allowance of .70% of the public offering price. State securities laws may
require financial institutions purchasing for their customers to register as
dealers. Financial institutions which purchase shares of the Fund for accounts
of their customers may impose separate charges on these customers for account
services. Corporate payroll plans which qualify as Group Programs as described
below under "Special Programs" may also purchase shares of the Fund.

     From time to time the Distributor may implement programs under which
dealers and their representatives may be eligible to participate in which such
firms may win nominal awards for certain sales efforts or under which the
Distributor will reallow additional concessions to any dealer that sponsors
sales contests or recognition programs conforming to criteria established by the
Distributor or participates in sales programs sponsored by the Distributor.
These programs will not change the price that an investor pays for shares or the
amount that the Fund will receive from such sale.  

Letters of Intent

     An investor may qualify for a reduced sales charge immediately by stating
his or her intention to invest in one or more series of the Fund, during a
13-month period, an amount that would qualify for a reduced sales charge and by
signing a nonbinding Letter of Intent, which may be signed at any time within
90 days after the first investment to be included under the Letter of Intent.
After signing the Letter of Intent, each investment made by an investor will be
entitled to the sales charge applicable to the total investment indicated in
the Letter of Intent. If an investor does not complete the purchases under the
Letter of Intent within the 13-month period, the sales charge will be adjusted
upward, corresponding to the amount actually purchased. When an investor signs
a Letter of Intent, shares of a series of the Fund with a value of up to 5% of
the amount specified in the Letter of Intent will be restricted. If the total
purchases made by an investor under the Letter of Intent, less redemptions,
equals or exceeds the amount specified in the Letter of Intent, the restriction
on the shares will be removed. In addition, if the total purchases exceed the
amount specified and qualify for a further quantity discount, the Distributor
will make a retroactive price adjustment and will apply the adjustment to
purchase additional shares at the then current applicable offering price. If an
investor does not complete purchases under a Letter of Intent, the sales charge
is adjusted upward, and if after written notice to the investor, he or she does
not pay the increased sales charge, sufficient restricted shares will be
redeemed at the current net asset value to pay such charge. In connection with
the determination of sales charges applicable to the purchase of shares of the
Fund, the Letter of Intent program will take into account investments in shares
of any other mutual fund carrying a sales load of which Ranson Capital
Corporation is the Distributor.

                                       17

Concurrent Purchases

     An investor who concurrently purchases shares of the Fund, shares of The
Kansas Municipal Fund and units of any unit investment trust sponsored by
Ranson Capital Corporation will be charged the sales charge on the respective
purchase at the level specified in the respective prospectus based on the
aggregate dollar value of the combined purchases.

     An investor or his or her dealer or agent must notify the Transfer Agent
whenever a quantity discount is applicable to purchases. Upon such
notification, an investor will receive the lowest applicable sales charge.
Quantity discounts may be modified or terminated by the Distributor at any
time. For more information about quantity discounts, contact the dealer or
agent from which this Prospectus was obtained or the Distributor.

Open Account Program/Certificates

     All investors in the Fund will be enrolled in an Open Account Program when
they make their first investment in the Fund, unless they elect otherwise.
Investors may then make additional purchases whenever they wish, but they are
not obligated to make any additional investments. Whenever investors make an
investment in the Fund, full and fractional shares will be purchased for
their account at the next determined public offering price applicable to their
purchase after the Fund receives their order.

     If an investor elects not to be enrolled in the Open Account Program by
notifying the Transfer Agent in written form, he or she will be sent share
certificates representing the full shares of the Fund and will be required to
surrender the certificates to redeem such shares. Fund share certificates will
be mailed within 10 days of an investor's request. Certificates will not be sent
outside of the United States. Investors should promptly notify the Fund if
certificates are not received. The Fund will not file a mail loss claim later
than one year after the issuance of Fund share certificates. After one year,
investors requesting replacement certificates may be required to post an
insurance bond in the amount of 2% of the market value of the certificated
shares.

   
Exchange Privilege

     By contacting the Transfer Agent, a shareholder may exchange some or all 
of his shares into any of the funds underwritten by ND Capital, Inc. or Ranson
Capital Corporation at net asset value, subject to these conditions: (1) When 
exchanging into shares of a back-end load fund, no contingent deferred sales 
charge will be imposed upon redemption of the newly acquired shares.  (2) Shares
must be held for at least six months prior to exchange when exchanging into a 
higher-load fund.  (3) When exchanging into another single-state municipal fund,
the shareholder must be a resident of that state or any other state in which 
the Fund is registered.     

     Each exchange involves the redemption of fund shares to be exchanged and 
the purchases of fund shares.  As a result, any gain or loss on the redemption 
of fund shares exchanged is reportable on the shareholder's federal income tax
return.  The exchange privilege may be changed or discontinued upon 60 days 
written notice to shareholders and is available only to shareholders in states
where such exchanges may be legally made.  A shareholder considering an 
exchange should obtain and read the prospectus of the fund and consider the 
differences between it and the fund whose shares he owns before making an 
exchange.

     For further information on how to exercise the exchange privilege, contact
the Transfer Agent.

                                       18

                                 SPECIAL PROGRAMS

Unit Investment Trust Reinvestment

     Investors in any Series of The Kansas Tax-Exempt Trust may reinvest
distributions of principal and interest from such trust in shares of the Fund
with no sales charge and no minimum investment. The Fund reserves the right to
modify or terminate this program at any time.

Redemptions From Other Funds

     Shares of the Fund may be purchased at net asset value where the amount
invested is documented to the Fund to be proceeds from the redemption of shares
of an unrelated investment company which does not impose a contingent deferred
sales charge or redemption fee and where the investor paid an initial sales
charge.  Purchases must be made within 60 days of the redemption date.  The
Fund reserves the right to modify or terminate this privilege at any time

     Shares of the Fund may be purchased at net asset value where the amount
invested is documented to the Fund to be proceeds from the redemption of shares
of The Kansas Municipal Fund.  Purchases must be made within 60 days of the
redemption date.  The Fund reserves the right to modify or terminate this
privilege at any time.

Group Program

     The Fund has a group investment and reinvestment program (the "Group
Program") which allows investors to purchase shares of a Series of the Fund with
a lower minimum initial investment and with a lower sales charge if the investor
and the Group Program of which he or she is a participant meet the cost saving
criteria set forth below.

     Description of Group Program. If the investor's Group Program (such as an
employee investment program) meets the requirements described below, a series of
the Fund will modify the $1,000 initial investment requirement to such minimum
investment as may be determined by the Fund. The sales charge set forth under
"Purchase of Shares" for each purchase by a participant of a Group Program will
be based on (i) the combined current purchases of such group of shares together
with (ii) the combined net asset value of shares of such group at the time of
such investment. The dealer or agent, if any, through which the Group Program
was initiated will be entitled to a dealer concession or agency commission based
on the sales charges paid by participants of such Group Program. The sales
charge applicable to purchases by participants in corporate payroll plans which
qualify as "Group Programs" is set forth above under "Purchase of Shares."

     Criteria for the Group Program. The cost savings criteria to the Fund that
must be met in order for a Group Program to qualify for the benefits set forth
above are:

     (a) The administrator of an investor's investment program must have entered
into an agreement with the Distributor.

     (b) Such agreement must provide that the administrator must submit a single
order and make payment with a single remittance for all investments during each
investment period (e.g., each pay period or distribution period) by all
investors who choose to invest through the Group Program.

                                      19

     (c) Such agreement must provide that the administrator will provide the
Transfer Agent with appropriate backup data for each participating investor in a
computerized format compatible with the Transfer Agent's processing system

      Additional Criteria for the Group Program. As further requirements for
obtaining these special benefits under the Group Program, the Fund requires that
investments be in the form of an Open Account (with no share certificates being
issued), that all dividends and other distributions be reinvested in additional
shares without any systematic withdrawal program described herein and that the
minimum new investment in shares of the Fund by each participant in an employee
investment program be at least $25 per month. The Fund reserves the right to
modify or terminate this program at any time.


Systematic Withdrawal Program

     The owner of $5,000 or more of shares of the Fund (which may not be in
certificated form) may provide for the payment from his or her account of any
requested dollar amount to his or her designated payee monthly, quarterly or
annually. Sufficient shares will be redeemed from the investor's account for the
designated amount so that the payee will receive it approximately the first of
each month. Dividend distributions automatically will be reinvested under this
program. Depending upon the size of the payments requested, redemptions for the
purpose of making such payments may reduce or even exhaust the account. The
program may be terminated at any time by the investor. If an investor desires to
utilize this program, he or she may so indicate on the Account Application 
included with this Prospectus.

     It ordinarily will be disadvantageous to an investor to purchase shares
(except through reinvestment of distributions) while participating in a
systematic withdrawal program because he or she will be paying a sales charge to
purchase shares at the same time that shares are being redeemed upon which such
investor may already have paid a sales charge. Therefore, the Fund will not
knowingly permit an investor to make additional investments of less than $5,000
if an investor is at the same time making systematic withdrawals at a rate
greater than the dividend distributions being paid on such investor's shares.
The Fund reserves the right to amend or terminate the systematic withdrawal
program on thirty days' notice, and investors may withdraw from the program at
any time. The Fund reserves the right to modify or terminate this program at any
time.

Preauthorized Investment Program

     An investor may establish an automatic investment program with his or her
Fund account. With the Preauthorized Investment Program, monthly investments
(minimum $50) are made automatically from an investor's account at a bank,
savings and loan or credit union into such investor's Fund account. By enrolling
in the Preauthorized Investment Program, the investor authorizes the Fund and
its agents to take money out of his or her predesignated bank, savings and loan
or credit union account and invest that money in his or her Fund account. If an
investor also has expedited wire transfer redemption privileges with his or her
Fund account, such investor must designate the same bank, savings and loan or
credit union account for both the Preauthorized Investment Program and wire
redemption programs. Any account owner may terminate this privilege simply by
sending written notice to the Transfer Agent. Termination will become effective
as soon as the Transfer Agent has had a reasonable time to act upon the request.
The Preauthorized Investment Program may not be used with passbook savings
accounts. Fund shares purchased by the Preauthorized Investment Program must be
owned for 15 days before they may be redeemed. If an investor desires to utilize
this program, he or she may so indicate on the Account Application included with
this Prospectus. The Fund reserves the right to modify or terminate this program
at any time.      

                                      20

Rights of Accumulation

     A purchase of shares may qualify for a cumulative quantity discount. The
applicable sales charge will be based on the total of:

     (a) the investor's current purchase; and

     (b) the net asset value (at the close of business on the previous day) of
         the shares of the Fund held by an investor

     For example, if an investor owned shares worth $40,000 at the current net
asset value and purchased an additional $10,000 of shares, the sales charge for
the $10,000 purchase would be at the rate applicable to a single $50,000
purchase.

     To qualify for the cumulative quantity discount on a purchase through a
broker-dealer, when each purchase is made, the investor or broker-dealer must
provide the Fund with sufficient information to verify that the purchase
qualifies for the discount

Reinstatement Privilege

     An investor who has redeemed shares of the Fund may reinvest up to the full
amount of such redemption at net asset value at the time of reinvestment. An
investor using this privilege a year or more after such investor redeemed shares
of the Fund must file a new account application and provide proof that such
investor was a shareholder of the Fund. See "Dividends and Taxes" regarding the
potential tax implications of exercising this privilege. The Fund reserves the
right to modify or terminate this privilege at any time.


                             REDEMPTION OF SHARES

     Upon receipt of a redemption request in proper form addressed to the
Transfer Agent, shares of the Fund will be redeemed by the Fund. The redemption
price for shares of the Fund is based on the net asset value per share next
determined after receipt of the redemption request. It is a broker's or dealer's
responsibility to promptly forward the redemption requests to the Transfer Agent
for shares being redeemed in order for shareholders to receive the next
determined net asset value. Redemption requests must be in writing, accompanied
by any issued certificates (for investor protection, certificates should be sent
by registered mail). Redemption requests and any certificates or stock power
must be endorsed by all registered owners with signatures guaranteed by a member
firm of a national securities exchange or by a commercial bank, savings and loan
association or trust company. Further documentation may be requested from
corporations, executors, administrators, trustees or guardians.

     Alternatively, an investor may place an order to sell shares (whether in
certificate or book entry form) through his or her dealer or agent which has a
sales agreement with the Distributor and from which this Prospectus was
received, which dealer or agent will telephone such request to the Distributor.
The investor will receive the net asset value next determined after the
Distributor receives such sell order from the dealer or agent. The Fund does not
charge for this transaction.

                                      21
   
Whether shares are redeemed by the Fund or sold through an investor's
dealer or agent, a check for the proceeds ordinarily will be mailed to an
investor or his or her dealer or agent within three calendar days after a
redemption request or repurchase order and share certificates (if any) are
received in proper form as set forth above.     

     If a request to redeem shares is received shortly after the purchase of
such shares, the Fund will not mail the proceeds until checks received for the
purchase of shares have cleared, which may take up to 15 days. The proceeds of a
redemption may be more or less than the cost of the shares.

     The right of redemption or resale of the Fund may be suspended or the date
of payment postponed during any period when the New York Share Exchange is
closed.

                              DIVIDENDS AND TAXES

Dividends

     The Fund will declare distributions on a daily basis to shareholders of
record on the date of each declaration and will pay such distributions on a
monthly basis. The monthly distribution will be composed of the investment
income earned by the Fund less the expenses of the Fund plus all or a portion of
net short-term capital gains (such net short-term capital gains reduced by net
long-term capital losses, if any, and carryover capital losses from previous
years) realized by the Fund on transactions in securities. The Fund will also
declare and make distributions of net long-term capital gains, if any, at least
annually. Net long-term capital gain distributions consist of the realized long-
term capital gains on transactions in securities of the Fund, net of certain
realized capital losses and less certain carryover capital losses from previous
years.

     The Fund automatically will credit monthly distributions and any capital
gain distributions to an investor's account in additional shares of the Fund
valued at net asset value on the date such distributions are payable, without
sales charge, unless an investor elects to the Transfer Agent of the Fund to
have distributions received in cash. Distributions that are reinvested are
treated as cash distributions for income tax purposes. If an investor elects to
change the method of distribution, such change will be effective only with
regard to distributions for which the payment date is seven or more business
days after the Transfer Agent has received the written request.

     A check will be generated on the date on which distributions are payable
for dividends to be received in cash. An investor can expect to receive this
check within seven days. If the U. S. Postal Service cannot deliver the check or
if the checks remain uncashed for six months, the checks will be reinvested in
the investor's account at the then-current net asset value and all future
dividends will be reinvested.

     Distribution checks may be sent to parties other than the investor. The
Transfer Agent of the Fund can provide investors with a "Dividend Order" form
for such purposes. After the Transfer Agent receives this completed form with a
signature guarantee, distribution checks will be sent to the bank or other
person designated as an investor.

                                      22
   
      If a shareholder has elected to receive dividends and/or capital gain 
distributions in cash and the postal or other delivery service is unable to 
deliver checks to the shareholder's address of record, such shareholder's
distribution option will automatically be converted to having all dividend and
other distributions reinvested in additional shares.  No interest will accrue 
on amounts represented by uncashed distribution or redemption checks.     

Taxes

     The Fund has elected and intends to qualify each year as a regulated
investment company under Subchapter M of the Internal Revenue Code of 1986 (the
"Code") and, if so qualified, will generally not be liable for federal income
taxes to the extent it timely distributes its earnings. If in any year the Fund
should fail to qualify under Subchapter M for tax treatment as a regulated
investment company, the Fund would incur a regular corporate federal income tax
upon its taxable income for that year, and distributions to shareholders of the
Fund would be taxable to such shareholders as ordinary income to the extent of
the earnings and profits of the Fund, including distributions that would
otherwise qualify as exempt-interest dividends. For shareholders of the Fund
that are corporations, such distributions would be eligible for the dividends-
received deduction. In addition, the Fund intends to invest in sufficient
municipal securities so that it will qualify to pay "exempt-interest dividends"
(as defined in the Code) to shareholders. The Fund's dividends payable from net
tax-exempt interest earned from municipal securities will qualify as exempt-
interest dividends if, at the close of each quarter of the taxable year of the
Series, at least 50% of the value of the Fund's total assets consists of tax-
exempt municipal securities. Insurance proceeds received by the Fund under any
insurance policies which represent maturing interest on defaulted obligations 
held by the Fund will be excludable from federal gross income if and to the same
extent as such interest would have been so excludable if paid by the issuer of 
the defaulted obligation, provided that at the time such policies are purchased,
the amounts paid for such policies are reasonable, customary and consistent with
the reasonable expectation that the issuer of the obligation, rather than the 
insurer, will pay debt service on the bonds.

     Exempt-interest dividends distributed to shareholders generally are not
subject to federal income tax except to the extent such interest is subject to
the alternative minimum tax, as discussed hereinafter. The percentage of income
that is tax-exempt is applied uniformly to all distributions made during each
calendar year and thus is an annual average for the Fund rather than a day-by-
day determination for each shareholder whether received in shares or in cash.
The percentage of all distributions of earnings other than exempt-interest
dividends paid by the Fund, such as net realized investment income received from
investments in debt securities other than municipal securities, and any net
realized short-term capital gains (including certain amounts deemed distributed)
will generally be taxable to the shareholders as ordinary income. Any
distribution of net realized long-term capital gains (including amounts deemed
distributed) will generally be subject to federal taxation as long-term capital
gains ("long-term capital gain distributions"), regardless of the length of time
the investor has held such shares.

     "The Revenue Reconciliation Act of 1993" (the "Tax Act") subjects tax-
exempt municipal securities to the market discount rules of the Code effective
for municipal securities purchased after April 30, 1993. In general, market
discount is the amount (if any) by which the stated redemption price at maturity
exceeds an investor's purchase price (except to the extent that such difference,
if any, is attributable to original issue discount not yet accrued), subject to
a statutory de minimus rule. Market discount can arise based on the price the
Fund pays for municipal securities. Under the Tax Act, accretion of market
discount is taxable as ordinary income; under prior law the accretion had been
treated as capital gain. Market discount that accretes while the Fund holds a
municipal security would be recognized as ordinary income by the Fund when
principal payments are received on the municipal security or upon sale or at
redemption (including early redemption), unless the Fund elects to.

                                      23

include market discount in taxable income as it accrues. Distributions to 
shareholders of the Fund, to the extent of any market discount that is included 
in the Fund's taxable income, would be taxable to shareholders as ordinary 
income

     For both individuals and corporations, interest paid on certain "private
activity bonds" issued on or after August 8, 1986, will be treated as an item of
tax preference and may, therefore, be subject to the alternative minimum tax. To
the extent provided by regulations to be issued by the Secretary of the
Treasury, exempt-interest dividends paid by the Fund will be treated as interest
on private activity bonds to the extent of the proportionate amount of interest
on such private activity bonds received by the Fund. Such exempt-interest
dividends constitute a tax preference item subject to both the individual and
corporate alternative minimum tax. The Fund will annually supply shareholders
with a report indicating the percentage of Fund income attributable to bonds
subject to the alternative minimum tax

     Exempt-interest dividends received by a shareholder which are not with
respect to certain "private activity bonds" are not treated as a tax preference
item. However, for certain corporate shareholders such dividends will be
included in the computation of an adjustment item used in determining such
corporation's alternative minimum tax and environmental tax (the "Superfund
Tax"). The adjustment item is 75% of the excess of such corporate shareholder's
"adjusted current earnings" over its other alternative minimum taxable income
with certain adjustments. Although exempt-interest dividends received by a
shareholder will not be included in the gross income of corporations for federal
income tax purposes, "adjusted current earnings" include all tax-exempt
interest, including exempt-interest dividends received from the Fund. Corporate
shareholders are advised to consult their tax advisers with respect to the tax
consequences of the alternative minimum tax, the Superfund Tax and the branch
profits tax under Section 884 of the Code.

     For taxpayers other than corporations, net capital gains are presently
subject to a maximum stated marginal tax rate of 28%. All taxpayers are required
to disclose to the Internal Revenue Service on their tax returns the amount of
tax-exempt interest earned during the year including exempt-interest dividends
from the Fund.

     The hedging activities and transactions in options and futures contracts of
the Fund are subject to special tax provisions that may accelerate or defer
recognition of certain taxable gains or losses, alter the holding periods of
certain of the Fund's securities or convert capital gain into ordinary income
and convert short-term capital losses into long-term capital losses. These rules
could therefore affect the amount, timing and character of distributions to
shareholders. Recognition of unrealized taxable gains by the Fund under the
"mark to market" rules of the Code may increase the difficulty of compliance
with requirements which must be satisfied in order for the Fund to continue to
qualify as a regulated investment company, thus requiring the Fund to limit its
hedging activities. Such activities also may be limited by the requirement that
the Fund derive less than 30% of its annual gross income from the sale or other
disposition of securities held for less than three months in order to qualify as
a regulated investment company under the Code.

     Although dividends generally will be treated as distributed when paid,
dividends declared in October, November or December, payable to shareholders of
record on a specified date in one of those months and paid during January of the
following year, will be treated as having been distributed by the Fund (and
received by the shareholders) on December 31 of the year such dividends are
declared.

                                      24

     Distributions from the Fund will not generally be eligible for the
dividends received deduction for corporations.

     The Fund is required by law to withhold a specified percentage of taxable
dividends and certain other payments, including redemption payments, paid to 
non-corporate investors who do not certify to the Fund their correct taxpayer
identification number (in the case of individuals, their social security number)
and in certain other circumstances

     Under Section 86 of the Code, up to 85% of a social security recipient's
benefits may be included in gross income for a benefit recipient if the sum of
his adjusted gross income, income from tax-exempt sources such as tax-exempt
bonds and distributions made by the Fund plus 50% of his social security
benefits exceeds certain base amounts. Income from the Fund is still tax-exempt
to the extent described above; it is only included in the calculation of whether
a recipient's income exceeds certain established amounts

     Redemption of shares of the Fund will be a taxable transaction for federal
income tax purposes, and such investors will generally recognize gain or loss in
an amount equal to the difference between the basis of the shares and the amount
received. Assuming that investors hold such shares as a capital asset, the gain
or loss will be a capital gain or loss and will generally be long-term if 
investors have held such shares for a period of more than one year. In the case 
of shareholders holding shares of the Fund for six months or less and 
subsequently selling those shares at a loss after receiving an exempt-interest 
dividend, the loss will be disallowed to the extent of the exempt-interest 
dividends received. If such loss is not entirely disallowed, it will be treated 
as a long-term capital loss to the extent any long-term capital gain 
distribution is made with respect to such shares during the six-month period or
less that the investor owns the shares. If a loss is realized on the redemption
of Fund shares, the reinvestment in additional Fund shares or the acquisition 
of a contract or option to acquire securities that are substantially identical 
to Fund shares within 30 days before or after the redemption may be subject to 
the "wash sale" rules of the Code, resulting in a postponement of the 
recognition of such loss for federal income investor cannot take into account 
any sales or similar charge incurred in acquiring shares of the Fund (a "load 
charge," such charge does not include amounts paid with respect to the 
reinvestment of mutual fund share dividends) in computing gain or loss on the 
sale of shares of the Fund if the investor sells such shares within 90 days of 
the date the shares are acquired and the investor obtains and subsequently 
exercises the right to reinvest in shares of any mutual fund without the payment
of a load charge or with the payment of a reduced charge (However, such charges
shall be treated as incurred in connection with the reinvestment in shares.).

     The Tax Act raised tax rates on ordinary income while capital gains remain
subject to a 28 percent maximum stated rate. Because some or all capital gains
are taxed at a comparatively lower rate under the Tax Act, the Tax Act includes
a provision that recharacterizes capital gains as ordinary income in the case of
certain financial transactions that are "conversion transactions" effective for
transactions entered into after April 30, 1993. It is possible that this
provision could result in the recharacterization of amounts or distributions
otherwise characterized as capital gains by the Fund or a shareholder as
ordinary income. Shareholders of the Fund should consult with their advisers
regarding the potential effect of this provision on their investment in shares
of the Fund.

     Interest on indebtedness which is incurred to purchase or carry shares of a
mutual fund which distributes exempt-interest dividends during the year is not
deductible for federal income tax purposes. Further, the Fund may not be an
appropriate investment for persons who are "substantial users" of facilities
financed by industrial 

                                      25

development bonds held by the Fund or are "related persons" to such users; such
persons should consult their tax advisers before investing in the Fund.

     State and Local Tax Aspects. To the extent that exempt-interest dividends
are derived from interest on Kansas Municipal Securities or insurance proceeds
under any insurance policies which represent maturing interest on defaulted
Kansas Municipal Securities that are exempt from Kansas income taxes, such
dividends will also qualify as exempt from Kansas income taxes. Otherwise, both
the nonqualifying exempt-interest dividends and dividends taxable for federal
income tax purposes as ordinary income will be subject to income tax in the
hands of the shareholders of the Fund. Distributions treated as long-term
capital gains for federal income tax purposes will generally receive the same
characterization under Kansas law. The foregoing discussion of Kansas law does
not apply to shareholders which are corporations or banks, for which dividends
from the Fund are not exempt. Corporations and banks are urged to consult their
own tax advisers before investing in the Fund.

     Except as described above with respect to Kansas income taxation, the
exemption from federal income tax for exempt-interest dividends does not
necessarily result in exemption for such dividends under the income or other tax
laws of any state or local taxing authority. Taxpayers should consult their own
advisers regarding the consequences under such taxes with respect to the
purchase, ownership and disposition of shares of the Fund.

     The tax discussion set forth above is for general information only.
Annually, shareholders of the Fund receive information as to the tax status of
distributions made by the Fund in each calendar year. The foregoing relates to
federal income taxation and to Kansas income taxation as in effect as of the
date of this Prospectus. Investors should consult their own tax advisers
regarding the federal, state, local, foreign and other tax consequences of an
investment in the Fund, including the effects of any change or any proposed
change, in the tax laws.


                       DESCRIPTION OF SHARES AND RIGHTS

     The Fund's Agreement and Declaration of Trust ("Trust Agreement") permits
its Trustees to issue an unlimited number of shares, without par value, from
each Series that is designated by the Board of Trustees. Each share of a Series
represents an equal proportionate interest in the assets and liabilities
belonging to the Series with each other share of such Series and is entitled to
such dividends and distributions out of the income belonging to the Series as
are declared by the Trustees. The shares do not have cumulative voting rights
nor any preemptive rights. In case of a liquidation, subject to the rights of
creditors, the holders of the shares of the Series being liquidated will be
entitled to receive a distribution out of the net assets belonging to the Series
being liquidated. Should additional Series be designated by the Board of
Trustees, the net asset value of the shares of each of such Series will be
computed based only upon the net assets of each such Series.

     Under Massachusetts law, if certain conditions prevail, shareholders of a
Massachusetts business trust could be deemed to have the same type of personal
liability for the obligations of the Fund as does a partner of a partnership.
The Trust Agreement contains an express disclaimer of liability on the part of
Fund shareholders and provides that the Fund shall assume the defense on behalf
of its shareholders. Thus, the risk of Fund shareholder liability is slight and
limited to a circumstance where a Series itself is unable to meet its
obligations.

     As a Massachusetts business trust, the Fund is not required to and does not
intend to hold annual shareholders' meetings. However, the Trust Agreement
provides for Fund shareholder voting with respect to certain matters, including:
(a) the election or removal of Trustees if a meeting is called for that purpose;
(b) any. contract as to which shareholder approval is required by the Investment

                                      26

Company Act of 1940, as amended (the "1940 Act"); (c) any termination or
reorganization of the Fund or any Series of the Fund to the extent provided in
the Trust Agreement; and (d) any amendment of the Trust Agreement (other than
amendments designating new Series, changing the name of the Fund or any Series
of the Fund, supplying any omission, curing any ambiguity, or curing, correcting
or supplementing any provisions inconsistent with the 1940 Act or the Code).
Meetings of shareholders may be called upon written application specifying the
purpose of the meeting by shareholders holding at least 25% (or 10% if the
purpose of the meeting is to determine if a Trustee is to be removed from
office) of the shares then outstanding. In connection with the shareholders'
right to remove a Trustee, shareholders will be assisted with their
communications in such manner

                                FUND MANAGEMENT
   
     The business and affairs of the Fund will be managed under the direction of
the Board of Trustees. The Trustees are subject to the fiduciary
responsibilities imposed by the laws of the Commonwealth of Massachusetts.
Subject to the Trustees' authority, Ranson Capital Corporation, a Kansas
Corporation, 1 North Main, Minot, North Dakota 58703 (the "Manager") will
supervise and implement the Fund's investment activities and will be responsible
for overall management of the Fund's business affairs. Ranson Capital
Corporation is also the investment adviser of the Fund and will perform certain
evaluations of the securities held by the Fund. The Fund will pay the Manager a
monthly management and investment advisory fee equivalent on an annual basis to
 .33 of 1% of its average daily net assets. For the year ended July 31, 1997, the
Fund paid the Manager management and investment advisory fees equal to .50% of
the average net asset value of the Fund.     
   
     Overall portfolio management strategy for the Ranson Fund is determined by
Ranson Capital under the general supervision and direction of Robert E. Walstad,
the President of the Ranson Fund and of Ranson Capital since January 5, 1996.
Mr. Walstad is also the President of five other open-end funds and of ND Money
Management, Inc., their investment adviser, and has supervised and directed the
management of their portfolios since they commenced operations. Mr. Walstad
started in the securities business with Paine Webber in 1972 as a retail broker.
He became branch manager with Dean Witter Reynolds in 1977 and spent ten years
in that capacity. In 1987, Mr. Walstad founded ND Holdings, which is also
sponsor of Integrity Mutual Funds. The day-to-day management of Ranson Fund,
including credit analysis and the execution of portfolio transactions, is the
responsibility of a portfolio management team consisting of Monte L. Avery and
W.  Dan Korgel. Mr. Avery started in the securities business with Paine Webber 
in 1981 as a retail broker and transferred to Dean Witter in 1982. In 1988, Mr. 
Avery joined First American Bank & Trust (Minot, ND) to help start their Invest
Center. He transferred back to Dean Witter in 1993 until joining ND Holdings in
1995.  Mr. Avery is responsible for the daily pricing of the Integrity Mutual 
Funds as well as their portfolio trading. He is also portfolio manager for the 
Integrity Fund of Funds. Mr. Korgel was employed in the trust banking business 
for 12 years prior to joining ND Holdings. He was with the trust department of 
First American Bank & Trust (Minot, ND) for two years as head of investments and
operations. Mr. Korgel joined ND Holdings in May 1988, and is the portfolio 
manager of four of the mutual funds which are sponsored by ND Holdings. He is 
responsible for the daily portfolio management of those funds. He is also 
Corporate Treasurer for ND Holdings. All portfolio management decisions
are subject to weekly review by Mr. Walstad and to quarterly review by the
Ranson Fund's Board of Trustees.     
   
     The Manager is a broker-dealer registered with the Securities and Exchange
Commission and a wholly-owned subsidiary of The Ranson Company, Inc., a Kansas
corporation. All of the outstanding shares of stock of The Ranson Company, Inc.,
are owned by ND Holdings, Inc., a North Dakota corporation. The Manager was
 .
                                      27

formed in 1990 and until December 29, 1995, served as sponsor, portfolio
supervisor and securities evaluator for Series 1 through 78 of The Kansas Tax-
Exempt Trust and Series 1 through 5 of The Nebraska Tax Exempt Trust. The
Manager is also the investment adviser for The Kansas Municipal Fund, The
Nebraska Municipal Fund, The Oklahoma Municipal Fund and newly formed The 
Illinois Municipal, Fund which have current net asset values of $126,514,377, 
$27,903,261, $10,674,397 and $9,575 respectively. The Manager has not retained 
the right to withdraw from the Fund the use of the name "Ranson," but the 
Manager may grant the use of the name "Ranson" to another investment company
    

     Under the terms of the Management and Investment Advisory Agreement, the
Manager has agreed to pay all expenses of the Fund, including the Fund's
dividend disbursing, administrative and accounting services fees (but excluding
taxes and brokerage fees and commissions, if any) that exceed .75% of the Fund's
average daily net assets on an annual basis. Reimbursements by the Manager for
such Fund expenses will be paid monthly based on annualized year to date
expenses. All other expenses shall be paid by the Fund. From time to time and
subject to discontinuance at any time, the Manager may voluntarily assume
certain expenses of the Fund. This will have the effect of lowering the overall
expense ratio of the Fund and of increasing yield to investors. The Fund's
expenses include, among others, taxes, brokerage fees and commissions, if any,
fees of Disinterested Trustees, expenses of Trustees' and shareholders'
meetings, insurance premiums, expenses of redemption of shares, expenses of
issue and sale of shares (to the extent not borne by the Distributor), expenses
of printing and mailing certificates, association membership dues, charges of
the Fund's Custodian, and bookkeeping, auditing and legal expenses, and the fees
and expenses of registering the Fund and its shares with the Securities and
Exchange Commission, registering or qualifying its shares under state securities
laws and the expenses of preparing and mailing prospectuses and reports to
shareholders.

     ND Resources, Inc. ("Resources"), a wholly-owned subsidiary of ND Holdings,
Inc., a North Dakota corporation, acts as the Fund's administrative and
accounting services agent. For these services, Resources receives an
administrative and accounting services fee payable monthly from the Fund equal
to the sum of (i) $2,000 per month and (ii) 0.05% of the Fund's average daily
net assets on an annual basis for the Fund's first $50 million of average daily
net assets, 0.04% of the Fund's average daily net assets on an annual basis for
the Fund's next $50 million of average daily net assets, 0.03% of the Fund's
average daily net assets on an annual basis for the Fund's next $100 million of
average daily net assets, 0.02% of the Fund's average daily net assets on an
annual basis for the Fund's next $300 million of average daily net assets, and
0.01% of the Fund's average daily net assets on an annual basis for the Fund's
average daily net assets in excess of $500 million, together with reimbursement
of Resource's out-of-pocket expenses. This fee and reimbursement are in addition
to the investment advisory and management fee received by the Manager, which is
also indirectly owned by ND Holdings, Inc., from the Fund.

     The Board of Trustees has the authority, without shareholder approval, to
determine who will perform the following services for the Fund: securities
evaluator; custodian of the Fund's securities and cash; and dividend disbursing,
administrative and accounting services agent.

     In effecting purchases and sales of the Fund's portfolio securities, the
Manager and the Fund may place orders with and pay brokerage commissions to
brokers which are affiliated with the Fund, the Manager, the Distributor or
selected dealers participating in the offering of the Fund's shares. In
addition, in selecting among firms to handle a particular transaction, the
Manager and the Fund may take into account whether the firm has sold or is
selling shares of the Fund. Subject to rules adopted by the Securities and
Exchange Commission, the Fund may also purchase municipal securities from other
members of underwriting syndicates of which the Distributor or other affiliates
of the Fund are members.

                                      28


                                   THE DISTRIBUTOR

     Shares of the Fund are offered on a continuous basis through Ranson Capital
Corporation, a Kansas Corporation, 1 North Main, Minot, North Dakota 58703.
Pursuant to a Distribution and Services Agreement, the Distributor will purchase
shares of the Fund for resale to the public, either directly or through 
securities dealers or agents, and is obligated to purchase only those shares 
for which it has received purchase orders. In addition to agreements with 
securities dealers, the Distributor may enter into agreements with banks or bank
affiliates with respect to the sale of shares of the Fund. Under the 
Glass-Steagall Act, banks and bank affiliates are prohibited from underwriting 
Fund shares; however, the Glass-Steagall Act does permit certain agency 
transactions and the banking regulators have not indicated that these particular
agency transactions are not permitted under such Act. In the event the 
Glass-Steagall Act should prevent banks or bank affiliates from acting in any 
capacity or providing investor administrative and shareholder services, the
Fund's Trustees will consider what action, if any, is appropriate in order to
provide efficient services to the Fund. It is anticipated that a termination of
a relationship with a bank or bank affiliate would not result in a loss to
investors or a change in net asset value.

     Under the Distribution and Services Agreement between the Fund and the
Distributor, the Distributor pays the expenses of distribution of the Fund's
shares, including preparation and distribution of literature relating to the
Fund and its investment performance and advertising and public relations
material. The Fund bears the expenses of registration of its shares with the
Securities and Exchange Commission and of sending prospectuses to existing
shareholders. The Distributor will permit its officers and employees to serve
without compensation as Trustees and officers of the Fund if duly elected to
such positions. The Fund will pay the cost of qualifying and maintaining
qualification of the shares for sale under the securities laws of the various
states if necessary.

     The Distribution and Services Agreement continues in effect from year to
year if specifically approved at least annually by the shareholders or Board of
Trustees of the Fund and by the Fund's Disinterested Trustees in compliance with
the Investment Company Act of 1940. The Distribution and Services Agreement may
be terminated without penalty upon sixty days' written notice by the Fund or by
the Distributor and will automatically terminate if it is assigned.

                       SHAREHOLDER SERVICES AND REPORTS

     First Western Bank & Trust (the "Custodian"), 900 South Broadway, Minot,
North Dakota 58701, serves as Custodian of the Fund and has custody of all
securities and cash of the Fund and attends to the collection of principal and
income and payment for and collection of proceeds of securities bought and sold
by the Fund.

     ND Resources, Inc., (the "Transfer Agent"), 1 North Main, Minot, North
Dakota 58703, serves as the Transfer Agent for the Fund and performs
bookkeeping, data processing and administrative services related to the
maintenance of shareholder accounts. When an investor makes an initial
investment in the Fund, an account will be opened on the Fund's books and the
investor will receive a confirmation of the opening of the account. An investor
will receive confirmation statements giving details of all activity in his or
her account whenever investments in or withdrawals from such account are made.
The statement with tax information for the year will be mailed to investors by
January 31 and will also be filed with the Internal Revenue Service.

     As a rule, the Fund will not issue share certificates. However, upon
written request to the Transfer Agent, a share certificate will be issued for
any or all of the full shares credited to an investor's account. Share
certificates which have been issued may be returned at any time.

                                       29

     Investors will receive annual financial statements, together with a report
of independent auditors, and semi-annual unaudited financial statements.
Investors will also receive notices of shareholders' meetings. Shareholder
inquiries regarding their account should be directed to the Transfer Agent.

                     CALCULATION OF FUND PERFORMANCE DATA

     From time to time, the Fund may advertise several types of performance
information. These are "current yield," "distribution return," "tax equivalent
yield," "average annual total return" and "total return." Each of these figures
is based upon historical results and is not necessarily representative of the
future performance of the Fund.

     Current yield is determined by annualizing net investment income earned per
share for a stated period (normally one month or thirty days) and dividing the
result by the maximum public offering price at the end of the evaluation period.

     Tax equivalent yield is determined by dividing that portion of current
yield which is tax-exempt by one minus a stated combined state and federal
income tax rate and adding that portion of the current yield, if any, that is
not tax-exempt.
   
     The Fund's distribution return is computed by dividing the income per share
by the number of days in the current month and the quotient is multiplied by
360. The result is divided by the offering price per share on the last day of
the month.     

     Average annual total return and total return figures measure both the net
investment income generated by the Fund and the effect of any realized or
unrealized appreciation or depreciation of the underlying investments in the
portfolio of the Fund for the period in question, assuming the reinvestment of
all dividends and capital gains distributions. Thus, these figures reflect the
change in the value of an investment in the Fund during a specified period.
Average annual total return will be quoted for at least the one, five and ten
year periods ending on a recent calendar quarter (or if such periods have not
yet elapsed, at the end of a shorter period corresponding to the life of the
Fund). Average annual total return figures are annualized and, therefore,
represent the average annual percentage change over the period in question.
Total return figures are not annualized and represent the aggregate percentage
or dollar value change over the period in question.

     From time to time, the Fund's performance may be compared to that of the
Consumer Price Index or various unmanaged bond indexes and may also be compared
to the performance of other fixed income or government bond mutual funds or
mutual fund indexes as reported by entities such as Lipper Analytical Services,
Inc. ("Lipper"). Lipper is a widely recognized independent mutual fund reporting
service. Lipper performance calculations are based upon changes in net asset
value with all dividends reinvested and do not include the effect of any sales
charges.

     The Fund's shares are sold at net asset value plus a maximum sales charge
of 2.75% of the offering price. While the maximum sales charge is normally
reflected in the Fund's performance figures, certain total return calculations
may not include such charge and those results would be reduced if it were
included. The Fund's returns and net asset value will fluctuate. Shares of the
Fund are redeemable by an investor at the then current net asset value, which
may be more or less than original cost.

                                       30

                             SUMMARY OF PROCEDURES

     The following summary is intended as a reference guide for investors. It is
not intended to be comprehensive. Investors should read the main body of the
Prospectus and consult with their dealer, agent or the Fund's customer service
representatives as necessary.

Purchases

     Initial investments of $1,000 or more and an account application
(indicating phone order information as applicable) should be mailed to the
dealer or agent from which this Prospectus was received which has a sales
agreement with the Distributor or directly mailed to the Transfer Agent.
Investors qualifying for reduced initial minimum investments or reduced sales
charges should indicate their qualification on the application. Additional
investments should be sent to the same address. Investors should include the
purchase form from the bottom of their monthly statement and should include
their account number on the check.


     Checks should be made payable to The Kansas Insured Intermediate Fund.

Redemptions 

     REDEMPTION REQUESTS must be signed by all registered owners, accompanied by
signature guarantee(s). Fund shares held in certificate form must be submitted
in proper form to effect redemption. The Transfer Agent may request such other
documentation from corporations, executors, administrators, trustees or
guardians as is deemed necessary to determine the authority of the individual
making the request.

     REDEMPTION REQUESTS AND OTHER TRANSFER AGENT INQUIRIES should be sent to
the Fund, c/o the Transfer Agent.

Other

     ADDRESS CHANGES: A new address should be indicated on the remittance advice
on the bottom of an investor's monthly statement (or on a copy of the monthly
statement) and mailed to the Transfer Agent at the above address. All other
requests must be signature guaranteed.

     REGISTRATION CHANGES: A new account is opened whenever there is a change in
registration. Therefore, the procedures for redemption by mail should be
followed indicating the requested registration changes. Shares will be
transferred to the new account at net asset value on the same date as the
closing of the old account.

               SALES INFORMATION, PERFORMANCE DATA, PRIOR DAY'S
                      OFFERING PRICE AND NET ASSET VALUE,
                    CALL (701) 857-0230 or (800) 601-5593.

         FOR INFORMATION ON ACCOUNT BALANCES AND ALL OTHER INQUIRIES, 
                             CALL (800) 601-5593.

                                       31

<TABLE>   
<CAPTION>
<S>                                         <C>

                                            ====================================================
Fund Manager and Investment Adviser                                                             
    Ranson Capital Corporation                                                                  
           1 North Main                                                                         
    Minot, North Dakota 58703                                  RANSON MANAGED                   
                                                                 PORTFOLIOS                     
          Transfer Agent                                                                        
        ND Resources, Inc.                                       THE KANSAS                     
           1 North Main                                            INSURED                      
    Minot, North Dakota 58703                                   INTERMEDIATE                    
                                                                    FUND                        
             Custodian                                                                          
    First Western Bank & Trust                                                                  
       900 South Broadway                   
    Minot, North Dakota 58701                            
                                            
      Independent Auditors                                                                      
  Brady, Martz & Associates, P.C.                                                               
       24 West Central Avenue                                                                   
     Minot, North Dakota 58701                           -----------------------------     
                                                          
          Legal Counsel                                          PROSPECTUS                                              
        Chapman and Cutler                                   November 28, 1997                    
      111 West Monroe Street                             
     Chicago, Illinois 60603                             -----------------------------

TABLE OF CONTENTS                     Page                                                      
Fee and Expense Table................   2                    [SYMBOL APPEARS HERE]              
Highlights of the Fund and                                                                      
     Prospectus Summary..............   3                                                       
Condensed Financial Information......   6                                                       
The Fund.............................   7                                                       
Investment Objective and Policies....   7                                                       
Net Asset Value......................  15                                                       
Purchase of Shares...................  16                                                       
Special Programs.....................  19                                                       
Redemption of Shares.................  21                                                       
Dividends and Taxes..................  22                        Distributor                    
Description of Shares and Rights.....  26                 RANSON CAPITAL CORPORATION            
Fund Management......................  27                       1 North Main                    
The Distributor......................  29                  Minot, North Dakota 58703            
Shareholder Services and Reports.....  29   
Calculation of Fund Performance Data.  30   
Summary of Procedures................  31   


================================================================================================
</TABLE>    

INITIAL APPLICATION             RANSON MANAGED PORTFOLIOS     
                                            THE KANSAS INSURED INTERMEDIATE FUND
ACCOUNT APPLICATION
   
Mail to:
 The Kansas Insured Intermediate Fund, P.O. Box 759, Minot, ND 58702-0759
    
================================================================================
1.  Account Registration (Please print) - NOTE: The name(s) and address shown
    below must read exactly in accordance with the registration of Shareholder
    Account (if any) currently on file.

    [_] Individual or joint* account

    --------------------------------------   -----------------------------------
    Name                                      Joint Owner's name
    *Joint tenants with rights of survivorship, unless you specify otherwise.

    [_] Check here if purchaser is employee of Broker/Dealer.

    [_] Gift or transfer to a minor (UGMA/UTMA)

    __________________________________ as custodian for_________________________
    Custodian's name                                     Minor's name

    under the ________________________
              State   

    Uniform Gifts/Transfers to Minors Act

    [_] Trust

    ____________________________ as trustee(s) of ______________________________
    Trustee's name(s)  Name of trust agreement    Date of trust agreement

    Please include copy of first and last page of trust agreement.

    [_] Corporation/other entity

    _____________________________________   ____________________________________
    Name of corporation or other entity     Type of organization 
                                            (i.e. corporation, non-profit, 
                                            partnership)

    Please attach a certified copy of your corporate resolution showing the
    person(s) authorized to act on this account.

    [_] TOD(transfer on Death)*transfer on Death form available upon request.
    
================================================================================
   
2.  Address: ____________________________   City, State, Zip: __________________

                                            Day telephone number:_______________
    
================================================================================
   
3.  Initial Investment
    
    ______ Check enclosed for $__________ (Minimum initial investment is $1,000;
    thereafter $50.) Make check payable to The Nebraska Municipal Fund.     
    ______ The dealer firm named below ordered my initial purchase of __________
    shares by wire on ____________________.
                           Date

    ______ Reinvestment of [_] Principal and Interest [_] Principal Only 
    [_] Interest Only at Net Asset Value From the Following Unit Investment
    Trust(s) ___________________________________________________________________

    This authorization will be sent to the Trustee to change Reinvestment
    instructions on the indicated UIT Series.
    
================================================================================
   
4.  Dividend and Distribution Options. All dividends and capital gains
    reinvested unless indicated.

              Dividends            Capital Gains
              [_] Reinvest         [_] Reinvest
              [_] Cash             [_] Cash

    All cash distributions to shareowner of record unless indicated below

    Name    ____________________________________________________________________

    Address ____________________________________________________________________

    City    _____________________________ State _______________  Zip ___________

    Account number (if applicable) _____________ Attach voided check if payable
    to your bank account.
</>
================================================================================

    
   
5.  Letter of Intent

    I request establishment of a Letter of Intent to purchase shares of Ranson
    Managed Portfolios-The Nebraska Municipal Fund as described in this
    Prospectus. These shares will be purchased over a thirteen-month period; the
    aggregate amount of these purchases will be at least equal to the amount
    indicated below:

    ______ $50,000  ______ $100,000 ______ $250,000 ______ $500,000 
      
    ______ $1,000,000

    ______ This is an amended Letter of Intent
    
================================================================================
   
6.  Rights of Accumulation

    If this account qualifies for a reduced sales charge under the Rights of
    Accumulation as described in this Prospectus, please give the following
    information:

     Account Number of Related Accounts            Relationship to Investor

    ___________________________________     ___________________________________

    ___________________________________     ___________________________________

    ___________________________________     ___________________________________
    
================================================================================
   
7.  Systematic Withdrawal Plan
    
    ______ Systematic Withdrawal (Available only for accounts of $5,000 or 
    more)-Redeem sufficient shares on or about the 25th of the month and send
    check to the owner listed above: ______ Monthly: ______Quarterly (Jan.,
    Apr., July & Oct.) for $______________ (Minimum $50). The first redemption
    to take place on the 25th of (indicate month) __________________________    

    (Note: All distributions from the Fund must be reinvested)

    ______ Payment to a different payee or account (Optional)-If systematic
    withdrawal checks are to be payable to person or address other than as
    registered above, make checks payable to:

    Name    ____________________________________________________________________

    Address ____________________________________________________________________

    City ________________________________   State__________________ Zip_________

    Account Number ______________________ (if applicable)
    
================================================================================
   
8.  Preauthorized Investment Program

    I hereby authorize the Transfer Agent to draw from my account monthly
    beginning on the [_] 5th or [_] 20th of ____________________________________

         Amount               Name of Bank                 ABA Number

    ____________________  ________________________  ____________________________
    
       (Minimum $50)     

        Bank Address                                     Bank Account No.

    ____________________________________  ______________________________________

    Name shown on bank records

    ____________________________________________________________________________

    Attached is one of unsigned checks marked "Void" to ensure the correct
    encoding.

    ____________________________________  ______________________________________
    Signature               Date          Signature Co-depositor       Date
    
================================================================================
   
9.  Your Signature and Tax Certifications

    See enclosed substitute Instructions and Important Notice. The Fund reserves
    the right to refuse to open an account without either a certified taxpayer
    identification number ("TIN") or a certification of foreign status. Failure
    to provide the tax certifications in this section may result in backup
    withholding on payments relating to your account and/or in your inability to
    qualify for treaty withholding rates.

    ____________________________________   OR   ________________________________
       Social Security Number                    Employer Identification Number

    I am a citizen of: [_] U.S. [_] _____________ My Country of residence for
    tax purposes is: [_]U.S. [_] ________________

    Check one of the following:

    [_] The number shown above is my correct TIN. I am not subject to backup
        withholding due to underreporting of interest or dividend income either
        because no notification has been received from the IRS or because the
        IRS has notified me that I am no longer subject to backup withholding.
        (If you are subject to backup withholding, please cross out the second
        sentence.)

    [_] Awaiting TIN. A TIN has not been issued to me, but I am in the process
        of applying for a TIN from either the appropriate Internal Revenue
        Service Center or Social Security Administration Office. I understand
        that if I do not provide a TIN to the Fund within 60 days, the Fund is
        required to commence backup withholding until I provide a certified TIN.
        I am not subject to backup withholding due to underreporting of interest
        or dividend income either because no notification has been received from
        the IRS or because the IRS has notified me that I am no longer subject
        to backup withholding. (If you are subject to backup withholding, please
        cross out the third sentence.)

    [_] Exempt Recipient. I am an exempt recipient. The instructions give a list
        of the most common exempt recipients. (You should still provide a TIN.)

    [_] Exempt Foreign Person. I am an exempt foreign person as explained in the
        instructions.

    Under the penalties of perjury, I certify that (1) the information provided
    on this application is true, correct and complete, (2) I have read the
    Prospectus for the Fund in which I am investing and agree to the terms
    thereof, and (3) I am of legal age or an emancipated minor.

                                                DATE: __________________________

    ______________________________              ________________________________
           Signature                                       Signature
    
================================================================================
   
10. Broker/Dealer Use Only: (Please print)       Ranson Dealer #

    We hereby submit this application for the purchase of shares of The Kansas
    Insured Intermediate Fund indicated in accordance with the terms of our
    selling agreement with Ranson Managed Portfolios and with the Prospectus
    for The Kansas Insured Intermediate Fund. We agree to notify Distributor
    of any purchases made under a letter of intent or right of accumulation.

    Wire Order Only: The attached check for $_____________ should be applied
    against wire order

      Confirmation Number ______________ Dated ____________ For ________ Shares
                                                            
    Securities Dealer Name  _______________________________   __________________
                                                                 Account No.
    Main Office Address     _______________________________ 
                                                            ____________________
    Branch # _________ Rep #____________                    Salesman's Last Name

    Representative Name ___________________________________

    Branch Address ________________________________________

    Telephone Number ______________________________________

    Authorized Signature, Securities Dealer _______________
                                                               
    Title _________________________________________________ ____________________
                                                                 R.R. No.

ACCEPTED: Ranson Managed Portfolios  By ___________________

    Date _______________
    
================================================================================
   
11. Additional Information

    Each time there is a transaction in a shareholder account, the shareholder
    will receive a confirmation statement showing the current transaction.

    Certificates can be issued for full and fractional shares.  These 
    certificates will be sent to the shareholder only upon specific request.

    The method of delivery of share certificates is at the option and risk of
    the shareholder. If sent by mail, registered and insured mail is suggested.

    All correspondence regarding shareholder accounts should be addressed to the
    Fund, c/o ND Resources, Inc., P.O. Box 759, Minot, North Dakota 58702-0759.

    This form is not authorized for distribution to prospective purchasers of
    shares of the portfolio in states where such shares are not qualified for
    sale.
    
================================================================================

                      STATEMENT OF ADDITIONAL INFORMATION

                           RANSON MANAGED PORTFOLIOS

                     THE KANSAS INSURED INTERMEDIATE FUND

     The Kansas Insured Intermediate Fund is an investment portfolio of Ranson
Managed Portfolios, a management investment company. The term "the Fund" as used
herein refers to either Ranson Managed Portfolios or The Kansas Insured
Intermediate Fund Series of Ranson Managed Portfolios, as the context may
require. The investment objective of The Kansas Insured Intermediate Fund is to
provide its shareholders with as high a level of current income that is exempt
from both federal income tax and Kansas income tax as is consistent with
preservation of capital. The Fund's manager is Ranson Capital Corporation.
   
     This Statement of Additional Information is not a prospectus but should be
read in conjunction with the Prospectus for the Fund dated November 28, 1997,
(the "Prospectus"). A copy of the Prospectus may be obtained without charge by
calling the Fund at (701) 852-5292.     

     The Prospectus and this Statement of Additional Information omit certain of
the information contained in the registration statement filed with the
Securities and Exchange Commission, Washington, D.C. These items may be obtained
from the Commission upon payment of the fee prescribed or inspected at the
Commission's office at no charge.

   
                               TABLE OF CONTENTS
<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
The Fund and Its Shares...................................................     2
Investment Objective, Policies and Restrictions...........................     2
Bond Insurance............................................................     5
Officers and Trustees.....................................................     7
Custodian.................................................................     8
Independent Auditors......................................................     8
Management and Investment Advisory Agreement..............................     9
Portfolio Transactions....................................................     9
Additional Information Regarding Shares and Rights........................    10
Expenses of the Fund......................................................    12
Performance Data..........................................................    12
Report of Brady, Martz & Associates, P.C..................................    14
Financial Statements......................................................    15
</TABLE>    
   
     This Statement of Additional Information is dated November 28, 1997.     

                            THE FUND AND ITS SHARES

     The Fund is an open-end, non-diversified management investment company
organized as an unincorporated business trust under the laws of Massachusetts on
August 10, 1990.
   
     To the best of the Fund's knowledge, as of November 14, 1997, the following
persons owned of record 5% or more of the shares of the Fund:     

<TABLE>   
<CAPTION> 
          Name               Address                 Percent Ownership
          ----               -------                 -----------------
<S>                      <C>                         <C>  
          Careco         c/o Sunflower Bank                12.42%
                         P. O. Box 800
                         Salina, KS 67402

</TABLE>    

                INVESTMENT OBJECTIVE, POLICIES AND RESTRICTIONS

     The following information supplements and should be read in conjunction
with the section in the Fund's Prospectus entitled "Investment Objective And
Policies."

     The investment objective of the Fund is to provide its shareholders with as
high a level of current income that is exempt from both federal income tax and
Kansas income tax as is consistent with preservation of capital.
   
     The investment policy of the Fund is to invest at least 95% of its total
assets in a portfolio of Kansas Municipal Securities (as defined in the
Prospectus) which are either covered by insurance guaranteeing the timely
payment of principal and interest thereon or backed by an escrow or trust
account containing sufficient U.S. Government agency securities to ensure timely
payment of principal and interest. Kansas Municipal Securities generally include
debt obligations of the State of Kansas, its political subdivisions,
municipalities, agencies and authorities, and certain industrial development and
other revenue bonds, short-term municipal notes, municipal leases and tax-exempt
commercial paper issued by such entities and obligations of the Commonwealth of
Puerto Rico, the United States Virgin Islands and Guam. Kansas Municipal 
Securities backed by an escrow or trust account will not constitute more than
15% of the Fund's total assets.     

     Futures Contracts, Options on Futures and Municipal Bond Index Futures. The
Fund may purchase or sell financial futures contracts ("futures contracts") and
related options thereon. These futures contracts and related options thereon
will be used only as a hedge against anticipated interest rate changes. In
general a futures contract sale creates an obligation by the Fund, as seller, to
deliver the specific type of instrument called for in the contract at a
specified future time for a specified price. A futures contract purchase would
generally create an obligation by the Fund, as purchaser, to take delivery of
the specific type of financial instrument at a specified future time at a
specified price. The specific securities delivered or taken, respectively, at
settlement date would not be determined until on or near that date. The
determination would be in accordance with the rules of the exchange on which the
futures contract sale or purchase was effected.

     Although the terms of futures contracts specify actual delivery or receipt
of securities, in most instances the contracts are closed out before the
settlement date without the making or taking of delivery of the securities.
Closing out a futures contract is usually effected by entering into an
offsetting transaction. An offsetting transaction for a futures contract sale is
effected by the Fund entering into a futures contract purchase for the same
aggregate amount of the specific type of financial instrument at the same
delivery date. If the price in the sale exceeds the price in the offsetting
purchase, the Fund immediately is paid the difference and thus realizes a
gain. If the offsetting purchase price exceeds the sale price, the Fund pays the
difference and realizes a loss. Similarly, the closing out of a futures contract
purchase is effected by the Fund entering into a futures contract sale. If the
offsetting sale price exceeds the purchase price, the Fund realizes a gain, and
if the offsetting sale price is less than the purchase price, the Fund realizes
a loss.

                                       2

     Unlike a futures contract, which requires the parties to buy and sell an
instrument on a set date, an option on a futures contract entitles its holder to
decide on or before a future date whether to enter into such a contract (a long
position in the case of a call option and a short position in the case of a put
option). If the holder decides not to enter into the contract, the premium paid
for the contract is lost. Since the cost of the option is fixed, there are no
daily payments of cash by the purchaser to reflect the change in the value of
the underlying contract, as discussed below for futures contracts. The seller of
the option, however, may be required to make daily maintenance margin payments
to reflect the change in the value of the underlying contract. The value of the
option is reflected in the net asset value of the Fund.

     The Fund is required to maintain margin deposits with brokerage firms
through which it effects futures contracts and options thereon. The initial
margin requirements vary according to the type of the underlying instrument. In
addition, due to current industry practice, daily variations in gains and losses
on open contracts are required to be reflected in cash in the form of variation
margin payments. The Fund may be required to make additional margin payments
during the term of the contract.

     Currently, futures contracts can be purchased on debt securities such as
U.S. Treasury bills and bonds, U.S. Treasury notes with maturities between 6-1/2
and 10 years, certificates of the Government National Mortgage Association, bank
certificates of deposit and on a municipal bond index (see below). The Fund may
purchase or sell interest rate futures contracts covering these types of
financial instruments as well as new types of contracts that become available in
the future.

     Financial futures contracts and related options contracts are traded in an
auction environment on the floors of several futures exchanges--principally, the
Chicago Board of Trade, the Chicago Mercantile Exchange and the New York Futures
Exchange.

     A risk in employing futures contracts to protect against the price
volatility of portfolio securities is that the prices of securities subject to
futures contracts may not correlate perfectly with the behavior of the cash
prices of the Fund's portfolio securities. The correlation may be distorted in
part by the fact that the futures market is influenced by short-term traders
seeking to profit from the difference between a contract or security price
objective and their cost of borrowed funds. This would reduce the value of
futures contracts for hedging purposes over a short time period. The correlation
may be further distorted since the futures contracts that are being used to
hedge are not based on municipal obligations.

     Another risk is that the Manager could be incorrect in its expectations as
to the direction or extent of various interest rate movements or the time span
within which the movements take place. For example, if the Fund sold futures
contracts in anticipation of an increase in interest rates, and then interest
rates went down, causing bond prices to rise, the Fund would lose money,
including transaction costs, on the sale.

     In addition to the risks associated with investing in options on
securities, there are particular risks associated with trading in options on
futures. In particular, the ability to establish and close out positions on such
options will be subject to the development and maintenance of a liquid market in
such options. It is not certain that this market will develop.

     A substantial majority (i.e., approximately 75%) of all anticipatory hedge
transactions (transactions in which the Fund does not own, at the time of the
transaction, but expects to acquire the securities corresponding to the relevant
futures contract) involving the purchase of futures contracts, call options or
written put options thereon will be completed by the purchase of securities
which are the subject of the hedge.

     The Fund may not enter into futures contracts or related options thereon
if, immediately thereafter, the amount committed to initial margin plus the
amount paid for option premiums on open contracts exceeds 5% of the value of the
Fund's total assets. In instances involving the purchase of futures contracts by
the Fund, an amount equal to the gross market value of the futures contract will
be deposited in a segregated account of cash

                                       3

and cash equivalents and thereby ensure that the use of such futures is 
unleveraged. The Fund may not purchase or sell futures contracts or related 
positions if, immediately thereafter, more than one-third of its net assets 
would be hedged.

     The Fund may utilize trading in municipal bond index futures contracts for
hedging purposes. The strategy in employing such contracts will be similar to
that discussed above with respect to financial futures and options thereon. A
municipal bond index is a method of reflecting in a single number the market
value (based on an average of quotations from certain dealers) of many different
municipal bonds. The index fluctuates in response to changes in the market
values of the bonds included within the index. Unlike futures contracts on
particular financial instruments, futures on a municipal bond index will be
settled in cash if held until the close of trading in the contract. However, as
in any other futures contract, a position in the contract may be closed out by
purchase or sale of an offsetting contract for the same delivery month prior to
expiration of the contract. Because trading in municipal bond index futures
contracts has been taking place only for a short time, the Fund's ability to
utilize such contracts will be dependent upon the development and maintenance of
a market in such contracts.

     The Securities and Exchange Commission generally requires that when
investment companies, such as the Fund, effect transactions of the foregoing
nature, such funds must either segregate cash or high quality, readily
marketable portfolio securities with its custodian in the amount of its
obligation under such transactions or cover such obligations by maintaining
positions in portfolio securities, futures contracts or options that would serve
to satisfy or offset the risk of such obligations. When effecting transactions
of the foregoing nature, the Fund will comply with such segregation or cover
requirements.

     Investment Restrictions. Fundamental investment restrictions limiting the
investments of the Fund provide that the Fund may not:

     1.  Borrow money, except from banks for temporary or emergency (not
         leveraging) purposes and then in an amount not exceeding 10% of the
         value of the Fund's total assets (including the amount borrowed). The
         Fund will not borrow for leveraging purposes, and securities will not
         be purchased while borrowings are outstanding. Interest paid on any
         money borrowed will reduce the Fund's net income.

     2.  Pledge, hypothecate, mortgage or otherwise encumber its assets in
         excess of 10% of the value of its total assets (taken at the lower of
         cost or current value) and then only to secure borrowings for temporary
         or emergency purposes.

     3.  Purchase securities on margin, except such short-term credits as may be
         necessary for the clearance of purchases and sales of securities. The
         deposit of initial or maintenance margin by the Fund in connection with
         financial futures contracts and related options transactions, including
         municipal bond index futures contracts or related options transactions,
         is not considered the purchase of a security on margin.

     4.  Make short sales of securities or maintain a short position for the
         account of the Fund including any short sales "against the box."

     5.  Underwrite the securities of other issuers, except to the extent that
         in connection with the disposition of its portfolio investments, it may
         be deemed to be an underwriter under federal securities laws.

     6.  Purchase or sell real estate, but this shall not prevent the Fund from
         investing in securities which are secured by real estate or interests
         therein.

     7.  Purchase or sell commodities or commodity contracts except to the
         extent the options and futures contracts the Fund may trade in are
         considered to be commodities or commodities contracts

                                       4

     8.  Make loans to others except through the purchase of qualified debt
         obligations and the entry into repurchase agreements referred to in the
         Prospectus.

     9.  Invest more than 25% of its total assets in the securities of issuers
         in any single industry; provided that there shall be no such limitation
         on the purchase of securities issued or guaranteed by the U.S.
         Government, its agencies or instrumentalities. (The Fund may, from time
         to time, invest more than 25% of its total assets in a particular
         segment of the municipal bond market; however, the Fund will not invest
         more than 25% of its total assets in industrial development bonds in a
         single industry.)

     10. Invest in securities of any issuer if, to the knowledge of the Fund,
         officers and Trustees of the Fund or officers and directors of the
         Manager who beneficially own more than 1/2 of 1% of the securities of
         that issuer together own more than 5%.

     11. Purchase securities restricted as to resale, if, as a result, such
         investment would exceed 5% of the value of such Fund's total net
         assets.

     12. Invest in (a) securities which at the time of such investment are not
         readily marketable, including participation interests in municipal
         leases, (b) securities the disposition of which is restricted under
         federal securities laws (as described in fundamental restriction (11)
         above) and (c) repurchase agreements maturing in more than seven days,
         if, as a result, more than 10% of such Fund's total net assets (taken
         at current value) would be invested in securities described in (a), (b)
         and (c) above.

     13. Issue senior securities, except as described in paragraph 4 above.

     The Fund may not change any of these investment restrictions without the
approval of the lesser of (i) more than 50% of the Fund's outstanding shares or
(ii) 67% of the Fund's shares present or represented by proxy at a meeting at
which the holders of more than 50% of the outstanding shares are present or
represented by proxy. As long as the percentage restrictions described above are
satisfied at the time of the investment or borrowing, the Fund will be
considered to have abided by those restrictions even if, at a later time, a
change in values or net assets causes an increase or decrease in percentage
beyond that allowed.

     The following investment restrictions of the Fund may be changed by the
Board of Trustees of the Fund.

     The Fund will not:

     1.  Invest more than 5% of its total assets in the securities of any other
         single investment company, nor more than 10% of its total assets in the
         securities of two or more other investment companies, except as part of
         a merger, consolidation or acquisition of assets.

     2.  Buy or sell oil, gas or other mineral leases, rights or royalty
         contracts.

     An advisory fee will be charged for assets invested in securities of other
investment companies. However, the Fund will not invest more than 10% of its
total assets in such securities.

                                BOND INSURANCE

     Each insured Kansas Municipal Security in which the Fund will invest will
be covered by Original Issue Insurance or Secondary Market Insurance. In any
event, the Fund will invest in Kansas Municipal Securities insured by insurers
having total admitted assets of at least $75 million, capital and surplus of at
least $50 million and claims-paying ability ratings of "Aaa" by Moody's, "AAA"
by S&P, "AAA" by Fitch or "AAA" by Duff & Phelps. There is no limitation on the
percentage of the Fund's assets that may be invested in Kansas Municipal
Securities insured by any given insurer.

                                       5

     Original Issue Insurance. Original Issue Insurance is purchased with
respect to a particular issue of municipal obligations by the issuer thereof or
a third party in conjunction with the original issuance of such municipal
obligations. Under such insurance, the insurer unconditionally guarantees to the
holder of the municipal obligation the timely payment of principal and interest
on such obligation when and as such payments shall become due but shall not be
paid by the issuer, except that in the event of any acceleration of the due date
of the principal by reason of mandatory or optional redemption (other than
acceleration by reason of a mandatory sinking fund payment), default or
otherwise, the payments guaranteed may be made in such amounts and at such times
as payments of principal would have been due had there not been such
acceleration. The insurer is responsible for such payments less any amounts
received by the holder from any trustee for the municipal obligation issuers or
from any other source. Original Issue Insurance does not guarantee payment on an
accelerated basis, the payment of any redemption premium (except with respect to
certain premium payments in the case of certain small issue industrial
development and pollution control municipal obligations), the value of the
shares of the Fund or the market value of municipal obligations or payments of
any tender purchase price upon the tender of the municipal obligations. Original
Issue Insurance also does not insure against nonpayment of principal of or
interest on municipal obligations resulting from the insolvency, negligence or
any other act or omission of the trustee or other paying agent for such
obligations.

     In the event that interest on or principal of a Kansas Municipal Security
covered by insurance is due for payment but is unpaid by reason of nonpayment by
the issuer thereof, the applicable insurer will make payments to its fiscal
agent (the "Fiscal Agent") equal to such unpaid amounts or principal and
interest not later than one business day after the insurer has been notified
that such nonpayment has occurred (but not earlier than the date such payment is
due). The Fiscal Agent will disburse to the Fund the amount of principal and
interest which is then due for payment but is unpaid upon receipt by the Fiscal
Agent of (i) evidence of the Fund's right to receive payment of such principal
and interest and (ii) evidence, including any appropriate instruments of
assignment, that all of the rights of payment of such principal or interest then
due for payment shall thereupon vest in the insurer. Upon payment by the insurer
of any principal or interest payments with respect to any Kansas Municipal
Securities, the insurer shall succeed to the rights of the Fund with respect to
such payment.

     Original Issue Insurance remains in effect as long as the Kansas Municipal
Securities covered thereby remain outstanding and the insurer remains in
business, regardless of whether the Fund ultimately disposes of such Kansas
Municipal Securities. Consequently, Original Issue Insurance may be considered
to represent an element of market value with respect to the Kansas Municipal
Securities so insured, but the exact effect, if any, of this insurance on such
market value cannot be estimated.

     Secondary Market Insurance. Subsequent to the time of original issuance of
a Kansas Municipal Security, the Fund or a third party may, upon the payment of
a single premium, purchase insurance on such Kansas Municipal Security.
Secondary Market Insurance generally provides the same type of coverage as is
provided by Original Issue Insurance and, as is the case with Original Issue
Insurance, Secondary Market Insurance remains in effect as long as the Kansas
Municipal Securities covered thereby remain outstanding and the insurer remains
in business, regardless of whether the Fund ultimately disposes of such Kansas
Municipal Securities.

                                       6

                             OFFICERS AND TRUSTEES

     The officers and Trustees of the Fund and their principal occupations for
the last five years are as follows:

<TABLE>     
<CAPTION> 
                                                                Principal Occupation(s)
Name, Address                      Position(s) Held                   During Past
   and Age                        with Registrant (1)                 5 Years (2)
- - -------------------------------------------------------------------------------------------------------
   
<S>                               <C>                     <C> 
Lynn W. Aas                       Trustee                 Retired; Attorney; Director, ND 
904 NW 27th                                               Tax-Free Fund, Inc., ND Insured Income
Minot, North Dakota 58701                                 Fund, Inc., Montana Tax-Free Fund, Inc.,
76                                                        South Dakota Tax-Free Fund, Inc. and
                                                          Integrity Fund of Funds, Inc.; 
                                                          Director, First Western Bank & Trust
                            
Orlin W. Backes                   Trustee                 Attorney; Director, ND Tax-Free Fund,
15 2nd Ave. SW, Suite 305                                 Inc., ND Insured Income Fund, Inc.,
Minot, North Dakota 58701                                 Montana Tax-Free Fund, Inc., South
62                                                        Dakota Tax-Free Fund, Inc. and
                                                          Integrity Fund of Funds, Inc.; 
                                                          Director, First Western Bank & Trust
                            
Arthur A. Link                    Trustee                 Director, ND Tax-Free Fund, Inc.,
2001 Grimsrud Drive                                       ND Insured Income Fund, Inc., Montana
Bismarck, North Dakota 58501                              Tax-Free Fund, Inc., South Dakota
83                                                        Tax-Free Fund, Inc. and Integrity Fund
                                                          of Funds, Inc.; Director, Bank Center 
                                                          First; Formerly Governor of the State
                                                          of North Dakota
                            
*Peter A. Quist                   Vice President          Director and Vice President, ND Holdings,
 1 North Main                     and Secretary           Inc.; Director, Vice President and Secretary,
 Minot, North Dakota 58703                                ND Money Management, Inc., ND Capital,
 63                                                       Inc., ND Resources, Inc., ND Tax-Free
                                                          Fund, Inc., ND Insured Income Fund, Inc.,
                                                          Montana Tax-Free Fund, Inc., South Dakota
                                                          Tax-Free Fund, Inc., Integrity Fund of 
                                                          Funds, Inc., The Ranson Company, Inc.
                                                          and Ranson Capital Corporation
                            
*Robert E. Walstad                Trustee, Chairman,      Director and President, ND Holdings, Inc.;
 1 North Main                     President and           Director, President and Treasurer, ND
 Minot, North Dakota 58703        Treasurer               Money Management, Inc., ND Capital, Inc.,
 53                                                       ND Resources, Inc., ND Tax-Free Fund,
                                                          Inc., ND Insured Income Fund, Inc.,
                                                          Montana Tax-Free Fund, Inc., South Dakota
                                                          Tax-Free Fund, Inc. and Integrity Fund of
                                                          Funds, Inc.; Director, President, CEO and
                                                          Treasurer, The Ranson Company, Inc., and
                                                          Ranson Capital Corporation
</TABLE>    

*"Interested Person" of the Fund as that term is defined in the Investment
Company Act of 1940

                                       7

     (1) The Trustees were elected at a joint special meeting of the
shareholders of The Kansas Municipal Fund, The Kansas Insured Municipal Fund -
Limited Maturity and The Nebraska Municipal Fund of Ranson Managed Portfolios
held on December 11, 1995, but did not assume office until the closing of the
Stock Purchase Agreement between the shareholders of The Ranson Company, Inc.,
and ND Holdings, Inc., on January 5, 1996. Prior to that time, the Board of
Trustees consisted of J. Joseph Hannah, H. Dene Heskett, Harrison F. Johnson,
Kevin F. Mitchelson, John A. Ranson and John S. Ranson.

     (2) Lynn W. Aas and Orlin W. Backes were elected to the boards of directors
of the above-named funds (the "Funds") in 1994 and 1995, respectively. Arthur A.
Link has served on the boards of directors of the Funds since their inceptions.
Peter A. Quist has served as a director and as the Vice President and Secretary
of the Funds since their inceptions, except that he was not elected to the board
of directors of South Dakota Tax-Free Fund, Inc., until 1995. Robert E. Walstad
has served as a director and as the President and Treasurer of the Funds since
their inceptions. Messrs. Quist and Walstad were elected as directors and
officers of The Ranson Company, Inc., and Ranson Capital Corporation on January
5, 1996.

                            Compensation Table (2)
   
<TABLE>     
<CAPTION> 
                                Aggregate Compensation   Total Compensation From
Name of Person,                From The Kansas Insured       Registrant and
 Position (1)                  Intermediate Fund Series       Fund Complex
- - --------------------------------------------------------------------------------
<S>                            <C>                       <C> 
 Lynn W. Aas                           789                       10,000
 Orlin W. Backes                       789                       10,000
 Arthur A. Link                        789                       10,000
*Robert E. Walstad                      0                           0
- - --------------------------------------------------------------------------------
</TABLE>    

*"Interested person" as defined in the Investment Company Act of 1940
   
     (1) Each of the named persons acted in the capacity of a Trustee.      
   
     (2) The compensation of any Trustee who is not an "interested person" as
that term is defined in the Investment Company Act of 1940 is paid by the
Fund. Until the closing of the Stock Purchase Agreement (see note (1) above),
Trustees who were not interested persons of the Fund or the Distributor (the
"Disinterested Trustees") were paid $500 plus expenses per meeting of the Board
of Trustees and committees thereof attended by such Trustee. None of the
Trustees who are interested persons received compensation for services as
Trustees. Each of the Disinterested Trustees will be paid a fee of $10,000 for
the calendar year ending December 31, 1997, plus any expenses incurred in
attending meetings. The $10,000 fee is apportioned among the ten funds
comprised in the Integrity Mutual Funds group on the basis of gross assets,
subject to a minimum fee of $500 per Disinterested Trustee per fund.     
   
     As of November 14, 1997, the officers and Trustees of the Fund owned, as a
group, less than 1% of the shares of the Fund.     

                                   CUSTODIAN

     First Western Bank & Trust, 900 South Broadway, Minot, North Dakota 58701,
serves as the Custodian of the Fund and has custody of all securities and cash
of the Fund. The Custodian, among other things, attends to the collection of
principal and income and payment for and collection of proceeds of securities
bought and sold by the Fund.

                              INDEPENDENT AUDITORS

     Shareholders will receive annual financial statements, together with a
report of independent auditors, and semi-annual unaudited financial statements
of the Fund. The independent auditors for the Fund were Allen, Gibbs & Houlik,
L.C., 301 North Main, Suite 1700, Wichita, Kansas 67202. At a joint special
meeting of The Kansas Municipal Fund, The Kansas Insured Municipal Fund - 
Limited Maturity and The Nebraska Municipal

                                       8

Fund held on December 11, 1995, the Fund's shareholders voted to ratify the 
selection of Brady, Martz & Associates, P.C., 24 West Central Avenue, Minot,
North Dakota 58701, as independent auditors for the Fund for the fiscal year 
ending July 31, 1996. There were no disagreements at any time between the Fund 
and Allen, Gibbs & Houlik, L.C., on any matters of accounting principles or 
practices, financial statement disclosure or auditing scope or procedure. The 
independent auditors will report on the Fund's annual financial statements, 
review certain regulatory reports and the Fund's income tax returns, and perform
other professional accounting, auditing, tax and advisory services when engaged
to do so by the Fund.

                 MANAGEMENT AND INVESTMENT ADVISORY AGREEMENT

     The Management and Investment Advisory Agreement (the "Agreement") between
the Manager and the Fund provides that the Manager will supply investment
research and portfolio management, including the selection of securities for the
Fund to purchase, hold or sell, and the selection of brokers through whom the
Fund's portfolio transactions are executed. The Manager also administers the
business affairs of the Fund, furnishes offices, necessary facilities and
equipment, provides administrative services, and permits its officers and
employees to serve without compensation as directors and officers of the Fund if
duly elected to such positions. Fees and expense limitations under the Agreement
are described in the Prospectus.

     The Agreement was submitted to the shareholders of the Fund for their
approval at the first shareholder's meeting. The Agreement will continue in
effect from year to year if specifically approved by the Fund's Trustees or the
Fund's shareholders and by the Fund's Disinterested Trustees in compliance with
the requirements of the Investment Company Act of 1940 (the "1940 Act"). The
Agreement may be terminated without penalty upon 60 days' written notice by
either party and will automatically terminate in the event of assignment.

     Ranson Capital Corporation serves as the Fund Manager and is a wholly-owned
subsidiary of The Ranson Company, Inc., a Kansas corporation. ND Holdings, Inc.,
a North Dakota corporation, owns all of the outstanding shares of common stock
of The Ranson Company, Inc.

                            PORTFOLIO TRANSACTIONS

     The Manager will place orders for portfolio transactions for the Fund with
broker-dealer firms giving consideration to the quality, quantity and nature of
each firm's professional services. These services include execution, clearance
procedures, wire service quotations and statistical and other research
information provided to the Fund and the Manager including quotations necessary
to determine the value of the Fund's net assets. Any research benefits derived
are available for all clients of the Manager. Since statistical and other
research information is only supplementary to the research efforts of the
Manager and still must be analyzed and reviewed by one of its staff, the receipt
of research information is not expected to materially reduce the Manager's 
expenses. In selecting among the firms believed to meet the criteria for 
handling a particular transaction, the Manager may take into consideration
that certain firms have sold or are selling shares of the Fund and that certain
firms provide market, statistical or other research information to the Fund and
the Manager and may select firms that are affiliated with the Fund or the
Manager.

     If it is believed to be in the best interests of the Fund, the Manager may
place portfolio transactions with brokers who provide the types of service 
described above, even if it means the Fund will have to pay a higher commission
(or, if the broker's profit is part of the cost of the security, will have to
pay a higher price for the security) than would be the case if no weight were 
given to the broker's furnishing of these services. This will be done, however,
 only if, in the opinion of the Manager, the amount of additional commission or
increased cost is reasonable in relation to the value of the services.

                                       9

     If purchases or sales of securities of the Fund and of one or more other
portfolios of the Fund, investment companies or clients supervised by the
Manager are considered at or about the same time, transactions in such
securities will be allocated among the several portfolios of the Fund,
investment companies and clients in a manner deemed equitable to all by the
Manager, taking into account the respective sizes of the funds and the amount of
securities to be purchased or sold. Although it is possible that in some cases
this procedure could have a detrimental effect on the price or volume of the
security as far as the Fund is concerned, it is also possible that the ability
to participate in volume transactions and to negotiate lower brokerage
commissions will be beneficial to the Fund. The Fund expects that its portfolio
transactions in Kansas Municipal Securities will generally be effected on a
principal (as opposed to agency) basis and, accordingly, does not expect to
incur significant brokerage commissions.

     While the Manager will be primarily responsible for the placement of the
Fund's business, the policies and practices in this regard must be consistent
with the foregoing and will at all times be subject to review by the Trustees of
the Fund.

     The Board of Trustees has adopted certain policies incorporating the
standards of Rule 17e-1 issued by the Securities and Exchange Commission under
the 1940 Act which require that the commissions paid to the Distributor and
other affiliates of the Fund must be reasonable and fair compared to the
commissions, fees or other remuneration received or to be received by other
brokers in connection with comparable transactions involving similar securities
during a comparable period of time. The Rule and procedures also contain review
requirements and require the Manager to furnish reports to the Board of Trustees
and to maintain records in connection with such reviews. After consideration of
all factors deemed relevant, the Board of Trustees will consider from time to
time whether the advisory fee will be reduced by all or a portion of the
brokerage commission given to affiliated brokers.

              ADDITIONAL INFORMATION REGARDING SHARES AND RIGHTS
   
     The Fund is a non-diversified, open-end investment company established
under Massachusetts law by an Agreement and Declaration of Trust ("Trust
Agreement") dated August 10, 1990, and is the type of organization commonly
known as a "Massachusetts business trust." It is a series company as
contemplated under Rule 18f-2 under the 1940 Act, having five series (the
"Series") of shares at this time known as "The Kansas Insured Intermediate
Fund", "The Kansas Municipal Fund", "The Nebraska Municipal Fund", "The Oklahoma
Municipal Fund" and "The Illinois Municipal Fund". The Trust Agreement provides
that each shareholder, by virtue of becoming such, will be held to have 
expressly assented and agreed to the terms of the Trust Agreement and to have 
become a party thereto.     

     The Trust Agreement permits the Trustees to issue an unlimited number of
full and fractional shares, without par value, from each portfolio. Each share
of a portfolio represents an equal proportionate interest in the assets and
liabilities belonging to such portfolio with each other share of such portfolio
and is entitled to such dividends and distributions out of the income belonging
to such portfolio as are declared by the Trustees. The shares do not have 
cumulative voting rights nor any preemptive rights. In case of a liquidation,
subject to the rights of creditors, the holders of shares of each portfolio 
being liquidated will be entitled to receive as a Series a distribution out of 
the net assets belonging only to that portfolio. Under the Trust Agreement,
expenses attributable to any specific portfolio (whether start-up for a new 
portfolio or on-going operating expenses) will be borne by that portfolio. Any 
general expenses of the Fund not readily identifiable as belonging to a 
particular portfolio are allocated by or under the direction of the Trustees in
such manner as the Trustees determine to be fair and equitable, usually in 
proportion to the portfolio's relative net assets. The net asset value of the 
shares of any portfolio will be computed based only upon the net assets of such
portfolio.

     As a general matter, the Fund will not hold annual or other meetings of the
Fund's shareholders. This is because the Trust Agreement provides for Fund
shareholders voting only (a) for the election or removal of one

                                      10

or more Trustees if a meeting is called for that purpose; (b) with respect to 
any contract as to which shareholder approval is required by the 1940 Act (such
as the Fund's Management and Investment Advisory Agreement and the Distribution
and Services Agreement); (c) with respect to any termination or reorganization 
of the Fund or any portfolio to the extent and as provided in the Trust 
Agreement; (d) with respect to any amendment of the Trust Agreement (other than
amendments establishing and designating new portfolios, changing the name of the
Fund or the name of any portfolio, supplying any omission, curing any ambiguity,
or curing, correcting or supplementing any provision thereof which is internally
inconsistent with the 1940 Act or with the requirements of the Internal Revenue
Code and applicable regulations for the Fund to obtain the most favorable
treatment thereunder available to regulated investment companies), which
amendments require approval by more than 50% of the shares entitled to vote; (e)
to the same extent as the stockholders; of a Massachusetts business corporation
as to whether or not a court action, proceeding or claim should or should not be
brought or maintained derivatively or as a class action on behalf of the Fund or
the shareholders; and (f) with respect to such additional matters relating to
the Fund as may be required by the 1940 Act (such as changes in the Fund's
investment policies and restrictions), the Trust Agreement, the by-laws of the
Fund, or any registration of the Fund with the Securities and Exchange
Commission or any state or as the Trustees may consider necessary or desirable.

     Each Trustee serves until the next meeting of shareholders, if any, called
for the purpose of considering the election or reelection of such Trustee or of
a successor to such Trustee, and until the election and qualification of his
successor, if any, elected at such meeting, or until such Trustee sooner dies,
resigns, retires or is removed by the shareholders or two-thirds of the
Trustees.

     The Trust Agreement provides that on any matter submitted to a vote of the
shareholders, all Fund shares entitled to vote, irrespective of portfolio, shall
be voted in the aggregate and not by portfolio except that (a) as to any matter
with respect to which a separate vote of any portfolio is required by the 1940
Act, such requirements as to a separate vote by that portfolio shall apply in
lieu of the aggregate voting as described above, and (b) when the Trustees have
determined that the matter affects only the interests of one or more portfolios,
then only shareholders of the affected portfolios shall be entitled to vote
thereon.

     Rule 18f-2 under the 1940 Act provides that any matter required to be
submitted by the provisions of the 1940 Act or applicable state law, or
otherwise, to the holders of the outstanding voting securities of an investment
company with separate portfolios like this Fund, shall not be deemed to have
been effectively acted upon unless approved by the holders of a majority of the
outstanding shares (as defined below) of each portfolio "affected by" such
matter. Rule 18f-2 further provides that a portfolio shall be deemed to be
affected by a matter unless the interests of each portfolio in the matter are
substantially identical or the matter does not affect any interests of such
portfolio. The Rule specifically exempts the selection of independent auditors,
the approval of principal underwriting contracts and the election of trustees
from such separate voting requirements and specifically provides that any
required approval of the Fund's Management and Investment Advisory Agreement and
the Distribution and Services Agreement is subject to such separate voting
requirements. In addition, changes in the Fund's investment policies are also
subject to separate voting requirements.

     The Trust Agreement provides that the presence at a meeting of shareholders
in person or by proxy of shareholders entitled to vote at least thirty percent
(30%) of the votes entitled to be cast on a matter (or if voting is to be by
portfolio, shareholders of each portfolio entitled to vote at least thirty
percent (30%) of the votes entitled to be cast by each portfolio) shall
constitute a quorum. This permits a meeting of shareholders of the Fund to take
place even if less than a majority of the shareholders are present on its
scheduled date. Shareholders would in such a case be permitted to take action
which does not require a larger vote than a majority of a quorum (the election
of Trustees and the ratification of the selection of independent public
accountants are examples). Some matters requiring a larger vote under the Trust
Agreement, such as termination or reorganization of the Fund and certain
amendments of the Trust Agreement, would not be affected by this provision. This
is also true with respect to matters which under the 1940 Act require the vote
of a majority of the outstanding voting shares (as defined below) of the Fund or
a particular portfolio.

                                      11

     As used in the Prospectus and this Statement of Additional Information, the
term "majority of the outstanding shares" of either the Fund or a particular
portfolio of the Fund means the vote of the lesser of (i) 67% or more of the
shares of the Fund or such portfolio present or represented by proxy at a
meeting, if the holders of more than 50% of the outstanding shares of the Fund
or of such portfolio are present or represented by proxy, or (ii) more than 50%
of the outstanding shares of the Fund or such portfolio.

     Under the terms of the Trust Agreement, a Trustee is liable for his own
willful misfeasance, bad faith, gross negligence or reckless disregard of the
duties involved in the conduct of his office, and for nothing else, and shall
not be liable for errors of judgment or mistakes of fact or of law. The Trust
Agreement provides for indemnification by the Fund of the Trustees and the
officers of the Fund except with respect to any matter as to which such person
did not act in good faith in the reasonable belief that his action was in or not
opposed to the best interests of the Fund (or the predecessor corporation) but
such person may not be indemnified against any liability to the Fund or the Fund
shareholders to which he would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence or reckless disregard of the duties
involved in the conduct of his office. The Trust Agreement also provides that
any agreement or undertaking by the Trustees on behalf of the Fund is binding
upon the Fund only and not on the Trustees personally.

                             EXPENSES OF THE FUND

     The Fund's expenses include, among others, management and investment
advisory fees, accounting and administrative fees, taxes, brokerage fees and
commissions, if any, fees of Disinterested Trustees, expenses of Trustees' and
shareholders' meetings, insurance premiums, expenses of redemption of shares,
expenses of issue and sale of shares (to the extent not borne by the
Distributor), expenses of printing and mailing certificates, association
membership dues, charges of the Fund's Custodian and bookkeeping, auditing and
legal expenses, and the fees and expenses of registering the Fund and its shares
with the Securities and Exchange Commission, registering or qualifying its
shares under state securities laws and the expenses of preparing and mailing
prospectuses and reports to shareholders.
   
     For the period from the commencement of operations on November 23, 1992, to
July 31, 1993, and for the year ended July 31, 1994, 1995, 1996,and 1997 the 
Manager earned $37,664, $143,411, $155,780, $156,871,and $138,457 respectively,
in management and investment advisory fees, of which $37,664, $124,579, 
$106,100, $0, and $0 respectively, was waived by the Manager.     
    
     For the period from the commencement of operations on November 23, 1992, to
July 31, 1993, and for the year ended July 31, 1994, 1995, 1996, and 1997, the
ND Resources earned $23,616, $48,608, $59,157, $47,195, and $37,836 
respectively, in administrative and accounting services fees of which $16,116,
$7,370, $3,960, $0, and $0, respectively, was waived by the ND Resources.     

In addition, in connection with sales of shares of the Fund, Ranson Capital
Corporation retained $58,473, $37,930, $5,167, $3,554, and $2,162 respectively,
of underwriting commissions paid by shareholders during the period from the
commencement of operations on November 23, 1992, to July 31, 1993, and for year
ended July 31, 1994, 1995, 1996, and 1997, respectively.     

                               PERFORMANCE DATA

     As described in the Prospectus, the Fund's historical performance may be
shown in the form of "current yield," "tax equivalent yield," "distribution
return," "average annual total return" and "total return" figures. These
various measures of performance are described below.

                                      12

   
     Current yield is determined in accordance with a standardized method
prescribed by rules of the Securities and Exchange Commission by annualizing net
investment income earned per share for a stated period (normally one month or
thirty days) and dividing the result by the maximum public offering price at the
end of the evaluation period. The Securities and Exchange Commission's rules for
calculating current yield require the use of certain standardized accounting
practices which are not necessarily consistent with those used by the Fund in
the preparation of its audited financial statements or federal tax return. The
Fund's current yield figure is based upon historical results and is not
necessarily representative of future performance. The current yield for the one-
month period ending July 31, 1997, was 3.69%.    
   
     Tax equivalent yield is determined by dividing that portion of current
yield which is tax-exempt by one minus a stated income tax rate and adding that
portion of current yield, if any, that is not tax-exempt. The tax equivalent
yield for the one-month period ending July 31, 1997, was 8.48%.    
   
     The Fund's distribution return is computed by dividing the income per share
by the number of days in the current month, and the quotient is multiplied by
360 The result is divided by the offering price per share on the last day of
the month. The distribution return for the one-month period ending July 31,
1997, was 4.23%.    
   
     The Fund's average annual total return quotation is computed in accordance
with a standardized method prescribed by rules of the Securities and Exchange
Commission. The average annual total return for the Fund for a specific period
is found by first taking a hypothetical $1,000 investment ("initial investment")
in the Fund's shares on the first day of the period reduced by the maximum sales
charge in effect on that date and computing the "redeemable value" of that
investment at the end of the period. The redeemable value is then divided by the
initial investment, and the quotient is taken to the Nth root (N representing
the number of years in the period) and 1 is subtracted from the result, which is
then expressed as a percentage. The calculation assumes that all income and
capital gains dividends paid by the Fund have been reinvested at net asset value
on the reinvestment dates during the period. The average annual total return for
the period from November 23, 1992, to July 31, 1997, was 4.98%.    
   
     The Fund's total return quotation is computed by aggregating the percentage
or dollar value change over the period in question, exclusive of the initial
sales charge. The total return for the period from November 23, 1992, to July
31, 1997, was 29.12%.    

     The Fund's performance figures are based upon historical results and are
not necessarily representative of future performance. The Fund's shares are sold
at net asset value plus a maximum sales charge of 2.75% of the offering price.
Returns and net asset value will fluctuate. Factors affecting the Fund's
performance include general market conditions, operating expenses and investment
management. Any additional fees charged by a dealer or other financial services
firm would reduce the returns described in this section. Shares of the Fund are
redeemable at net asset value, which may be more or less than original cost.

                                      13
   
INDEPENDENT AUDITOR'S REPORT

To the Shareholders and Board of Trustees of
The Kansas Insured Intermediate Fund

We have audited the accompanying statement of assets and liabilities of The
Kansas Insured Intermediate Fund, (one of the portfolios constituting the
Ranson Managed Portfolios), including the schedule of investments, as of July
31, 1997, the related statement of operations for the period then ended, the
statement of changes in net assets for each of the two years in the period
then ended, and the financial highlights for the two years in the period
then ended. These financial statements and financial highlights are the
responsibility of the Company's management.  Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audit.  The financial highlights for each of the periods in the
years ended July 31, 1995, 1994, and 1993, were audited by other auditors
whose report dated September 11, 1995, expressed an unqualified opinion on
those statements.

We conducted our audit in accordance with generally accepted auditing
standards.  Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement.  An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements.  Our procedures included confirmation of securities
owned as of July 31, 1997, by correspondence with the custodian.  An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation.  We believe that our audit provides a reasonable basis
for our opinion.

In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of The
Kansas Insured Intermediate Fund of the Ranson Managed Portfolios, as of July
31, 1997, the results of its operations for  the year then ended, the changes
in its net assets for each of the two years in the period then ended, and the
financial highlights for the two years in the period then ended, in conformity
with generally accepted accounting principles.


BRADY, MARTZ & ASSOCIATES, P.C.

September 10, 1997    

                                      14
   
                             FINANCIAL STATEMENTS
                           RANSON MANAGED PORTFOLIOS
                     THE KANSAS INSURED INTERMEDIATE FUND
                           PORTFOLIO OF INVESTMENTS
                                 July 31, 1997
<TABLE>
<CAPTION>
Schedule of Investments  July 31, 1997

                                                                 Ratings
                                                               (Unaudited)
Name of Issuer                                               ---------------
Percentages represent the market value                                  Std. &   Coupon                 Principal      Market
of each investment category to total net assets               Moody's   Poor's    Rate    Maturity       Amount        Value
- -----------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>       <C>      <C>      <C>           <C>            <C>
KANSAS MUNICIPAL BONDS (103.1%)

Bourbon Co., KS USD #234 (Fort Scott) Building FSA Insured   Aaa        AAA      6.000%   09/01/10   $   380,000  $   410,130
Bourbon Co., KS USD #234 (Fort Scott) Building FSA Insured   Aaa        AAA      6.000    09/01/11       400,000      431,232
Butler Co., KS (Augusta) USD #402 G.O. AMBAC Insured         Aaa        AAA      5.400    10/01/06       200,000      211,662
Chanute, KS Electric Light, Water & Gas Sys. Ref. Rev.
 MBIA Insured                                                Aaa        AAA      5.875    05/01/04       500,000      527,780
Derby, KS Sewer Utility System Rev. AMBAC Insured            Aaa        AAA      5.000    08/01/08       340,000      343,142
Douglas Co., KS USD #491 (Eudora) G.O. School Bldg.
 Ref. & Imp. AMBAC Insured                                   Aaa        AAA      7.750    03/01/01       190,000      211,557
*Douglas Co., KS USD #491 (Eudora) G.O. School Bldg.
 Ref. & Imp. AMBAC Insured                                   Aaa        AAA      7.750    03/01/03       255,000      296,241
*Douglas Co., KS (Lawrence) USD #497 G.O. FGIC Insured       Aaa        AAA      7.200    09/01/02     1,370,000    1,541,743
Franklin Co., KS G.O. FGIC Insured                           Aaa        AAA      6.100    09/01/02       100,000      104,185
Johnson/Miami Cos., KS (Spring Hill) G.O. FGIC Insured       Aaa        AAA      5.250    12/01/05       350,000      364,210
Johnson Co., KS (DeSoto) USD #232 G.O. CGIC Insured          Aaa        AAA      5.400    03/01/03       100,000      105,223
Johnson Co., KS (DeSoto) USD #232 G.O. MBIA Insured          Aaa        NR       5.100    09/01/08       425,000      437,087
Johnson Co., KS (DeSoto) USD #232 G.O. MBIA Insured          Aaa        NR       5.150    09/01/09       510,000      525,188
Johnson Co., KS (DeSoto) USD #232 G.O. MBIA Insured          Aaa        NR       5.200    09/01/10       600,000      618,864
Johnson Co., KS (Olathe) USD #233 G.O. AMBAC Insured         Aaa        AAA      5.650    09/01/03     1,485,000    1,579,995
Johnson Co., KS (Olathe) USD #233 G.O. AMBAC Insured         Aaa        AAA      6.150    03/01/07       300,000      325,110
Kansas City, KS (Srs. of Prov.-St. Margaret Hlth. Ctr.)
 AMBAC Insured                                               Aaa        AAA      5.700    08/01/03       250,000      263,500
Kansas City, KS Special Obligation ESCROWED in U.S. Govts.   Aaa        AAA      6.000    02/15/03       200,000      214,746
KS Devl. Finance Auth. (Stormont Vail) Hlth. Rev.
 MBIA Insured                                                Aaa        AAA      5.700    11/15/08       450,000      480,807
KS Devl. Finance Auth. (Stormont Vail) Hlth. Rev.
 MBIA Insured                                                Aaa        AAA      5.300    11/15/04       250,000      259,802
KS Devl. Finance Auth. (Stormont Vail) Hlth. Rev.
 MBIA Insured                                                Aaa        AAA      5.400    11/15/05       475,000      497,420
KS Devl. Finance Auth. (Stormont Vail) Hlth. Rev.
 MBIA Insured                                                Aaa        AAA      5.600    11/15/07       100,000      106,661
KS Devl. Finance Auth. Pooled Ref. Lease Rev. MBIA Insured   Aaa        AAA      5.500    10/01/05       250,000      265,533
KS Devl. Finance Auth. MultiFamily Hsg. Rev.                 NR         AAA      5.700    12/01/09       325,000      327,353
KS Devl. Finance Auth. (Hays Med. Ctr.) Rev. MBIA Insured    Aaa        AAA      5.200    11/15/08       375,000      387,525
KS Devl. Finance Auth. (Hays Med. Ctr.) Rev. MBIA Insured    Aaa        AAA      5.300    11/15/09       375,000      386,786
KS State Turnpike Auth. Rev. FGIC Insured                    Aaa        AAA      5.450    09/01/10       200,000      209,256
Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev.
 MBIA Insured                                                Aaa        AAA      5.200    11/15/02       160,000      166,523
Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev.
 MBIA Insured                                                Aaa        AAA      5.300    11/15/03       170,000      177,623
Larned, KS (Catholic Hlth. Corp.) Hlth. Facs. Rev.
 MBIA Insured                                                Aaa        AAA      5.400    11/15/04       155,000      163,038
Leavenworth Co., KS USD #469 (Lansing) FSA Insured           NR         AAA      5.050    09/01/11       500,000      503,405
Lenexa, KS (Barrington Park) MultiFamily Hsg. Rev. Ref.
 ASSET GUAR. Insured                                         Aaa        AAA      5.875    02/01/04       500,000      513,690
Lenexa, KS (Barrington Park) MultiFamily Hsg. Rev. Ref.
 ASSET GUAR. Insured                                         Aaa        AAA      5.950    02/01/05       250,000      258,775
Linn Co., KS (Prairie View) USD #362 G.O. ASSET
 GUAR. Insured                                               Aaa        AA       5.500    11/01/09       500,000      519,735
McPherson Co., KS (McPherson) USD #418 G.O. CGIC Insured     Aaa        AAA      5.500    09/01/05       100,000      106,852
McPherson Co., KS (McPherson) USD #418 G.O. CGIC Insured     Aaa        AAA      5.700    09/01/06       400,000      430,972
McPherson Co., KS USD #448 G.O. FSA Insured                  Aaa        NR       5.950    09/01/10       365,000      394,700
McPherson Co., KS USD #448 G.O. FSA Insured                  Aaa        NR       5.950    09/01/11       390,000      420,900
</TABLE>    

                     See Notes to Financial Statements

 .                                  15

   
                          RANSON MANAGED PORTFOLIOS
                     THE KANSAS INSURED INTERMEDIATE FUND
                           PORTFOLIO OF INVESTMENTS
                                 July 31, 1997
<TABLE>
<CAPTION>
Schedule of Investments  July 31, 1997

                                                                 Ratings
                                                               (Unaudited)
Name of Issuer                                               ---------------
Percentages represent the market value                                  Std. &   Coupon                 Principal      Market
of each investment category to total net assets               Moody's   Poor's    Rate    Maturity       Amount        Value
- -----------------------------------------------------------------------------------------------------------------------------
<S>                                                           <C>       <C>      <C>      <C>           <C>            <C>
Miami Co., KS Rural Water Dist. #2 Ref ASSET GUAR. Insured   Aaa        AA       5.750    12/01/04       225,000      233,183
Olathe, KS (Evang. Luth. Good Samaritan Soc.)
 AMBAC Insured                                               Aaa        AAA      5.200    05/01/01       140,000      144,591
Olathe, KS (Evang. Luth. Good Samaritan Soc.) AMBAC Insured  Aaa        AAA      5.400    05/01/02       150,000      156,746
Olathe, KS (Evang. Luth. Good Samaritan Soc.) AMBAC Insured  Aaa        AAA      5.500    05/01/03       110,000      115,843
Olathe, KS (Medical Center) Hlth. Facs. Rev. Ref.
 AMBAC Insured                                               Aaa        AAA      5.600    09/01/05     1,000,000    1,064,440
Salina, KS (Asbury-Salina Regl. Med. Ctr.) Hosp. Rev.
 Ref. AMBAC Insured                                          Aaa        AAA      5.000    10/01/04       300,000      308,184
Sedgwick/Shawnee Cos., KS Coll. Single Family Mtg.
 GNMA Gtd.                                                   Aaa        AAA      5.250    11/01/04       175,000      176,005
Sedgwick Co., KS (Maize) USD #266 G.O. CGIC Insured          Aaa        AAA      5.500    09/01/05       300,000      320,037
Sedgwick Co., KS (Maize) USD #266 G.O. CGIC Insured          Aaa        AAA      5.600    09/01/06       200,000      214,740
Sedgwick Co., KS (Renwick) USD #267 G.O. AMBAC Insured       Aaa        AAA      5.850    11/01/06       290,000      313,954
Sedgwick Co., KS (Renwick) USD #267 G.O. AMBAC Insured       Aaa        AAA      6.000    11/01/07       570,000      604,485
Seward Co., KS G.O. Hospital Ref. AMBAC Insured              Aaa        AAA      5.600    08/15/04       100,000      105,478
Seward Co., KS G.O. Hospital Ref. AMBAC Insured              Aaa        AAA      5.600    08/15/04       150,000      158,217
Shawnee Co. KS USD #437 (Auburn-Wash) AMBAC Insured          Aaa        AAA      6.700    09/01/00       415,000      446,768
Shawnee Co. KS USD #437 (Auburn-Wash) AMBAC Insured          Aaa        AAA      6.625    09/01/01       475,000      516,838
Shawnee Co., KS (Shawnee Heights) USD #450 G.O.
 CGIC Insured                                                Aaa        AAA      6.500    09/01/00       250,000      267,778
Shawnee Co., KS (Topeka) USD #501 G.O. FGIC Insured          Aaa        AAA      5.550    02/01/07       820,000      870,643
Wichita, KS Airport Auth. Facs Ref. Rev. ASSET
 GUAR. Insured                                               Aaa        AAA      7.000    03/01/05       100,000      106,814
Wichita, KS (St. Francis Regl. Med. Ctr.) Hosp. Facs.
 Imp. & Ref. MBIA Insured                                    Aaa        AAA      6.000    10/01/03       250,000      263,125
Wichita, KS (St. Francis Regl. Med. Ctr.) Hosp. Facs.
 Imp. & Ref. MBIA Insured                                    Aaa        AAA      6.100    10/01/04       775,000      821,888
Wichita, KS Multifamily Housing Rev. FNMA Insured            NR         AAA      5.375    07/01/10       625,000      627,769
Wichita, KS Water & Sewer Util. Ref. & Imp. Rev.
 FGIC Insured                                                Aaa        AAA      5.600    04/01/05       610,000      648,442
Wichita, KS Water & Sewer Util. Ref. & Imp. Ref.
 FGIC Insured                                                Aaa        AAA      5.750    10/01/06       150,000      159,162
Wichita, KS Water & Sewer Util. Rev. FGIC Insured            Aaa        AAA      5.000    10/01/11       500,000      500,675
Winfield, KS Electric Sys. Ref. Rev. AMBAC Insured           Aaa        AAA      5.000    09/01/04       580,000      599,024
Wyandotte Co., KS G.O. Ref. & Imp. FGIC Insured              Aaa        AAA      7.000    09/01/05     1,020,000    1,072,397
Wyandotte Co., KS USD #204 (Bonner Springs) AMBAC Insured    Aaa        AAA      5.200    09/01/04       400,000      419,168
                                                                                                                  -----------
TOTAL KANSAS MUNICIPAL BONDS (COST: $25,368,986)                                                                  $26,325,345
                                                                                                                  -----------
SHORT TERM SECURITIES (0.7%)
Federated Intermediate Municipal Trust                                                                            $    73,476
Federated Tax-Free Trust                                                                                               93,350
                                                                                                                  -----------
TOTAL SHORT TERM SECURITIES (COST:  $166,266)                                                                     $   166,826
                                                                                                                  -----------
TOTAL INVESTMENTS IN SECURITIES (COST:  $25,535,252)                                                              $26,492,171

OTHER ASSETS LESS LIABILITIES(-3.8%)                                                                                (958,753)
                                                                                                                  -----------
NET ASSETS                                                                                                        $25,533,418
                                                                                                                  ===========
</TABLE>    
*Indicates bonds are segregated by the custodian to cover when-issued or
 delayed-delivery purchases.
The accompanying notes are an integral part of these financial statements.


                     See Notes to Financial Statement

                                      16
   

                           RANSON MANAGED PORTFOLIOS
                     THE KANSAS INSURED INTERMEDIATE FUND
                      STATEMENT OF ASSETS AND LIABILITIES
                                 July 31, 1997

<TABLE>
<CAPTION>
Assets
<S>                                                                    <C>
     Investment in securities, at value (cost: $25,535,252)            $     26,492,171
     Cash                                                                        27,421
     Accrued dividends receivable                                                 1,900
     Accrued interest receivable                                                468,310
     Deferred organization costs                                                  1,551
                                                                       ----------------
        Total Assets                                                   $     26,991,353
                                                                       ----------------

Liabilities
     Dividends payable                                                 $         92,993
     Accrued expenses                                                            16,020
     Payable for fund shares redeemed                                             5,017
     Security purchases payable                                               1,343,902
     Commissions payable                                                              3
                                                                       ----------------
        Total Liabilities                                              $      1,457,935
                                                                       ----------------

Net Assets                                                             $     25,533,418
                                                                       ================
       Net asset value per share, 2,086,938 shares outstanding         $          12.23
                                                                       ================


                       See Notes to Financial Statement

                                      17

                           RANSON MANAGED PORTFOLIOS
                     THE KANSAS INSURED INTERMEDIATE FUND
                            STATEMENT OF OPERATIONS
                                 July 31, 1997
INVESTMENT INCOME
     Interest                                                          $      1,387,755
     Dividends                                                                   18,227
                                                                       ----------------
         Total Investment Income                                       $      1,405,982
                                                                       ----------------

EXPENSES
     Investment advisory fees                                          $        138,457
     Custodian fees                                                               5,481
     Transfer agent fees                                                         38,157
     Accounting service fees                                                     37,836
     Audit and legal fees                                                         5,820
     Trustees' fees                                                               2,985
     Printing & postage                                                           9,802
     License, fees & registrations                                                2,047
     Insurance                                                                    1,503
     Amortization of organization costs                                           7,715
                                                                       ----------------
        Total Expenses                                                 $        249,803
      Less expenses waived  or absorbed
      by the Fund's manager                                                      40,608
                                                                       ----------------
        Total Net Expenses                                             $        209,195
                                                                       ----------------
NET INVESTMENT INCOME                                                  $      1,196,787
                                                                       ----------------

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FUTURES 
     Net realized gain (loss) from:
     Investment transactions                                           $         36,621
     Futures transactions                                                      (448,223)
     Net unrealized appreciation (depreciation) on investments                  525,690
                                                                       ----------------
          Net Realized and Unrealized Gain (Loss) on Investments
           and Futures                                                 $        114,088
                                                                       ----------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS                                              $      1,310,875
                                                                       ================
</TABLE>    
The accompanying notes are an integral part of these financial statements.


                      See Notes to Financial Statements

                                     18

   
                           RANSON MANAGED PORTFOLIOS
                     THE KANSAS INSURED INTERMEDIATE FUND
                      STATEMENT OF CHANGES IN NET ASSETS
              For the years ended July 31, 1997 and July 31, 1996


<TABLE>
<CAPTION>
                                                                          For The             For The
                                                                         Year Ended          Year Ended 
                                                                        July 31, 1997       July 31, 1996
                                                                        ----------------------------------
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS
<S>                                                                     <C>                 <C>
     Net investment income                                              $    1,196,787      $    1,366,829
     Net realized gain (loss) on investment and futures transactions          (411,602)             46,810
     Net unrealized appreciation (depreciation) on investments                 525,690             340,266
                                                                        ----------------------------------
Net Increase (Decrease) in Net Assets Resulting From Operations         $    1,310,875      $    1,753,905
                                                                        ----------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
     Dividends from net investment income                               $   (1,196,787)     $   (1,366,829)
     Distributions from net realized gain on investment transactions                 0                   0
                                                                        ----------------------------------
     Total Dividends and Distributions                                  $   (1,196,787)     $   (1,366,829)
                                                                        ----------------------------------
CAPITAL SHARE TRANSACTIONS
     Proceeds from sale of shares                                       $    1,355,388      $    2,780,585
     Proceeds from reinvested dividends                                        720,398             811,269
     Cost of shares redeemed                                                (7,220,379)         (4,093,311)
                                                                        ----------------------------------
     Net Increase (Decrease) in Net Assets Resulting
     From Capital Share Transactions                                    $   (5,144,593)     $     (501,457)
                                                                        ----------------------------------
TOTAL INCREASE (DECREASE) IN NET ASSETS                                 $   (5,030,505)     $     (114,381)

NET ASSETS, BEGINNING OF PERIOD                                             30,563,923          30,678,304
                                                                        ----------------------------------
NET ASSETS, END OF PERIOD                                               $   25,533,418      $   30,563,923
                                                                        ==================================
</TABLE>    
The accompanying notes are an integral part of these financial statements.


                      See Notes to Financial Statement

                                      19
   
                          RANSON MANAGED PORTFOLIOS
                     THE KANSAS INSURED INTERMEDIATE FUND
                         NOTES TO FINANCIAL STATEMENTS
                                 July 31, 1997

Note 1.     ORGANIZATION

Business Operations -The Kansas Insured Intermediate Fund (the "Fund") is an
investment portfolio of Ranson Managed Portfolios (the "Trust") registered
under the Investment Company Act of 1940, as amended, as a non-diversified,
open-end management investment company.  The Trust may offer multiple
portfolios; currently four portfolios are offered.  Ranson Managed Portfolios
is an unincorporated business trust organized under Massachusetts law on
August 10, 1990.  The Fund had no operations from that date to November 23,
1992, other than matters relating to organization and registration.  On
November 23, 1992, the Fund commenced its Public Offering of capital shares.
The investment objective of the Fund is to provide its shareholders with as
high a level of current income exempt from both federal and Kansas income tax
as is consistent with preservation of capital.  The Fund will seek to achieve
this objective by investing primarily in a portfolio of Kansas insured
securities.  Shares of the Fund are offered at net asset value plus a maximum
sales charge of 2.75% of the offering price.

Note 2.     SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Investment security valuation - Investments in securities traded on national
securities exchanges are valued at the last reported sales price at the close
of each business day. Securities for which market quotations are not readily
available are valued at fair value as determined in good faith by the
portfolio management team.  The Fund follows industry practice and records
security transactions on the trade date.

The Fund concentrates its investments in a single state.  This concentration
may result in the Fund investing a relatively high percentage of its assets
in a limited number of issuers.

Deferred organization costs - Costs incurred by the Fund in connection with
its organization are being amortized over a 60-month period on the straight
line basis.  Accumulated amortization at July 31, 1997 totaled $35,949. 

Federal and state income taxes - The Fund's policy is to comply with the
requirements of the Internal Revenue Code that are applicable to regulated
investment companies, and to distribute all of its net investment income and
any net realized gain on investments, to its shareholders.  Therefore, no
provision for income taxes is required.  The Fund has available at July 31,
1997, a net capital loss carryforward totaling $717,376, which may be used
to offset capital gains realized during subsequent years through July 31,
2005. 

Distributions to shareholders - Dividends from net investment income,
declared daily and payable monthly, are reinvested in additional shares of the
Fund at net asset value or paid in cash.  Capital gains, when available, are
distributed at least annually.

Investment income - Dividend income is recognized on the ex-dividend date and
interest income is recognized daily on an accrual basis.  Premiums and
discounts on securities purchased are amortized using the effective interest
method over the life of the respective securities, unless callable, in which
case they are amortized to the earliest call date.

Futures contracts - The Fund may purchase and sell financial futures to hedge
against changes in the values of tax-exempt municipal securities the Fund owns
or expects to purchase.

A futures contract is an agreement between two parties to buy or sell units
of a particular index or a certain amount of U.S. Government or municipal
securities at a set price on a future date.  Upon entering into a futures
contract, the Fund is required to deposit with a broker an amount of cash or
securities equal to the minimum "initial margin" requirement of the futures
exchange on which the contract is traded.  Subsequent payments ("variation
margin") are made or received by the Fund, dependent on the fluctuations in
the value of the underlying index.  Daily fluctuations in value are recorded
for financial reporting purposes as unrealized gains or losses by the Fund.
When entering into a closing transaction, the Fund will realize, for book
purposes, a gain or loss equal to the difference between the value of the
futures contracts sold and the futures contracts to buy. Unrealized
appreciation (depreciation) related to open futures contracts is required to
be treated as realized gain (loss) for Federal income tax purposes.
 
Certain risks may arise upon entering into futures contracts.  These risks
may include changes in the value of the futures contracts that may not
directly correlate with changes in the value of the underlying securities.     

                                20

   
                          RANSON MANAGED PORTFOLIOS
                     THE KANSAS INSURED INTERMEDIATE FUND
                         NOTES TO FINANCIAL STATEMENTS
                                 July 31, 1997

Use of Estimates - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period.  Actual results could differ from those estimates.

Note 3.     CAPITAL SHARE TRANSACTIONS

As of July 31, 1997, there were unlimited shares of no par authorized;
2,086,938 and 2,507,133 shares were outstanding at July 31, 1997 and July 31,
1996, respectively.

Transactions in capital shares were as follows:

                                                           Shares
                                                ------------------------------
                                                   For The         For The
                                                  Year Ended      Year Ended
                                                July 31, 1997    July 31, 1996
                                                ------------------------------
Shares sold                                        110,692          227,680
Shares issued on reinvestment of dividends          58,878           66,410
Shares redeemed                                   (589,765)        (335,874)
                                                ------------------------------
Net increase (decrease)                           (420,195)         (41,784)
                                                ==============================

Note 4.      INVESTMENT ADVISORY FEES AND OTHER TRANSACTIONS WITH AFFILIATES
Ranson Capital Corporation, the Fund's investment adviser and underwriter, and
ND Resources, Inc., the Fund's transfer and accounting services agent, are
subsidiaries of ND Holdings, Inc., the Fund's sponsor.

The Fund has engaged Ranson Capital Corporation, to provide investment
advisory and management services to the Fund.  The Investment Advisory
Agreement provides for fees to be computed at an annual rate of 0.50% of
the Fund's average daily net assets.  The Fund has recognized $138,457 of
investment advisory fees for the year ended July 31, 1997. The Fund has a
payable to Ranson Capital Corporation of $10,680 at July 31, 1997 for
investment advisory fees.  Certain officers and trustees of the Fund are also
officers and directors of the investment adviser.

ND Resources, Inc., (the transfer agent), provides shareholder services for a
monthly fee equal to an annual rate of 0.16% of the Fund's first $10 million
of net assets, 0.13% of the Fund's net assets on the next $15 million, 0.11%
of the Fund's net assets on the next $15 million,  0.10% of the Fund's net
assets on the next $10 million, and 0.09% of the Fund's net assets in excess
of $50 million. The Fund has recognized $38,157 of transfer agency fees for
the year ended July 31, 1997. ND Resources, Inc. also acts as the Fund's
accounting services agent for a monthly fee equal to the sum of a fixed fee of
$2,000, and a variable fee equal to 0.05% of the Fund's average daily net
assets on an annual basis for the Fund's first $50 million and at a lower
rate on the average daily net assets in excess of $50 million.  The Fund has
recognized $37,836 of accounting service fees for the year ended July 31,
1997. 

Note 5.     INVESTMENT SECURITY TRANSACTIONS

The cost of purchases and proceeds from the sales of investment securities
(excluding short-term securities) aggregated $7,745,107 and $11,372,800,
respectively, for the year ended July 31, 1997.

Note 6.     INVESTMENT IN SECURITIES

At July 31, 1997, the aggregate cost of securities for federal income tax
purposes was $25,535,252, and the net unrealized appreciation of investments
based on the cost was $956,919, which is comprised of $956,919 aggregate
gross unrealized appreciation.     

                                    21

   
                            RANSON MANAGED PORTFOLIOS
                       THE KANSAS INSURED INTERMEDIATE FUND
                             FINANCIAL HIGHLIGHTS
                       SELECTED PER SHARE DATA AND RATIOS

<TABLE>
<CAPTION>
                                                                                                           For the Period
                                                                                                           Since Inception
                                             For the         For the         For the         For the       (Nov. 23, 1992)
                                            Year Ended      Year Ended      Year Ended      Year Ended            to
                                           July 31, 1997   July 31, 1996   July 31, 1995   July 31, 1994    July 31, 1993
                                           -------------------------------------------------------------------------------
<S>                                        <C>             <C>             <C>             <C>              <C>
NET ASSET VALUE, BEGINNING OF PERIOD       $     12.19     $     12.04     $     11.92     $     12.24      $     11.59
                                           -------------------------------------------------------------------------------
Income from Investment Operations:
     Net investment income                 $       .53     $       .53     $       .54     $       .52      $       .32
     Net realized and unrealized gain
      (loss) on investments                        .04             .15             .12            (.30)             .65
                                           -------------------------------------------------------------------------------
        Total From Investment Operations   $       .57     $       .68     $       .66     $       .22      $       .97
                                           -------------------------------------------------------------------------------
Less Distributions:
     Dividends from net investment income  $      (.53)    $      (.53)    $      (.54)    $      (.52)     $      (.32)
     Distributions from net capital gains          .00             .00             .00            (.02)             .00
                                           -------------------------------------------------------------------------------
        Total Distributions                $      (.53)    $      (.53)    $      (.54)    $      (.54)     $      (.32)
                                           -------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD             $     12.23     $     12.19     $     12.04     $     11.92      $     12.24
                                           ===============================================================================
Total Return                               4.76%(A)        5.75%(A)        5.72%(A)        1.81%(A)         13.50%(A)(B)

RATIOS/SUPPLEMENTAL DATA:
     Net assets, end of period
      (in thousands)                       $25,533         $30,564         $30,678         $31,216          $22,110 
     Ratio of net expenses (after
      expense assumption) to average
      net assets                           0.76%(C)        0.69%(C)        0.62% (C)       0.51% (C)        0.33%(B)(C)
     Ratio of net investment income to
      average net assets                   4.33%           4.37%           4.57%           4.26%            4.41%(B)
     Portfolio turnover rate              28.68%          19.96%          63.00%          56.00%          152.00%
</TABLE>

(A)  Excludes maximum sales charge of 2.75%.
(B)  Ratio was annualized.
(C)  During the periods indicated above, ND Holdings, Inc. or Ranson Capital
     Corporation assumed expenses of  $40,608, $71,943, $112,745, $136,079 ,
     and $68,286, respectively. If the expenses had not been assumed, the
     annualized ratios of total expenses to average net assets would have been
     0.90%, 0.92%, 0.98%, 0.99%, and 1.24%, respectively.     


                                     22

                          INCORPORATION BY REFERENCE
   
The following financials of The Kansas Insured Intermediate Fund filed on
September 10, 1997, for the period ending July 31, 1997 are incorporated by
reference in this Post-effective Amendment #34 dated November 28, 1997.>

     Schedule of Investments July 31, 1997 
     Statement of Assets and Liabilities July 31, 1997 
     Statement of Operations July 31, 1997 
     Statement of Changes in Net Assets
         For year ended July 31, 1997
     Notes to Financial Statements July 31, 1997 
     Financial Highlights    

                                       23

PART C................. OTHER INFORMATION

ITEM 24.  Financial Statements and Exhibits.

(a)  Financial Statements:

     (i)  Financial Statements included in Part A of the Registration Statement:

          Condensed Financial Information

     (ii) Financial Statements included in Part B of the Registration Statement:

     Report of Independent Auditors
   
     Portfolio of Investments dated July 31, 1997

     Statement of Assets and Liabilities dated July 31, 1997

     Statement of Operations dated July 31, 1997

     Statement of Changes in Net Assets dated July 31, 1997
    

     Schedules 2, 3, 4, 5, 6 and 7 have been omitted as the required information
is not applicable.

(b)  Exhibits:

        1.  Agreement and Declaration of Trust dated August 10, 1990*
        2.  By-Laws*
        3.  Inapplicable
        4.  Inapplicable
        5.  Form of Management and Investment Advisory Agreement between
            Registrant and Ranson Capital Corporation*
        6.  (a)  Distribution and Services Agreement between Registrant and
                 Ranson Capital Corporation*
            (b)  Form of Dealer Agreement*
        7.  Inapplicable
        8.  Form of Custodian Agreement between Ranson Managed Portfolios and
            and First Western Bank and Trust*
        9.  (a) Form of Accounting and Administrative Services Agreement between
            Registrant and Ranson Capital Corporation*
            (b) Form of Agency Agreement between Registrant and ND Resources, 
            Inc*.      
       10. Opinion of Chapman and Cutler*
       11. Consent of Independent Auditors
       12. Inapplicable
       13. Inapplicable
       14. Inapplicable
       15. Shareholder Services Plan*
       16. Computation of Performance Data*
        *Previously filed

ITEM 25.  Persons Controlled by or Under Common Control With Registrant.
   
     To the best of Registrant's knowledge, as of November 14, 1997, no person
is either directly or indirectly controlled by or under common control with
Registrant.     

                                      C-1

ITEM 26.  Number of Holders of Securities.
   
     As of November 14, 1997, the number of record holders of Registrant was as
follows:

          The Kansas Municipal Fund: 4,187
          The Kansas Insured Intermediate Fund: 707  
          The Nebraska Municipal Fund: 1,192      
          The Oklahoma Municipal Fund: 184
          The Illinois Municipal Fund: 1    

ITEM 27.  Indemnification.

     The following is a summary of the rights of indemnification set forth in
the Agreement and Declaration of Trust of Registrant (see Exhibit 1). Article
VIII of the Agreement and Declaration of Trust of Registrant provides generally
that any person who is or has been a Trustee or officer of Registrant (including
persons who serve at the request of Registrant as directors, Trustees or
officers of another organization and including persons who served as officers
and directors of the Registrant) shall be indemnified by Registrant to the
fullest extent permitted by law against liabilities and expenses reasonably
incurred by such person in connection with any claim, suit or proceeding in
which such person becomes involved as a party or otherwise by virtue of being or
having been such a Trustee, director or officer and against amounts incurred in
settlement thereof. It is further provided in such Agreement and Declaration of
Trust that no indemnification shall be provided in the event that it is
determined that such person was engaged in willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of his
office or that such person did not act in good faith in the reasonable belief
that his action was in the best interests of Registrant. In the event of a
settlement or other disposition not involving a final determination of the
foregoing matters by a court or other body, no indemnification shall be provided
unless such determination is made by a vote of a majority of the Disinterested
Trustees acting on the matter or a written opinion of independent legal counsel.
The right to indemnification as so provided may be insured against by policies
maintained by the Registrant and shall continue as to any person who has ceased
to be a Trustee or officer of Registrant.

     Expenses of preparation and presentation of a defense by a person claiming
indemnification may be advanced by Registrant provided generally that such
person undertakes to repay any such advances if it is ultimately determined that
he is not entitled to indemnification and provided that either such undertaking
is secured by appropriate security or a majority of the Disinterested Trustees
acting on the matter or independent legal counsel in a written opinion
determines that there is reason to believe that such person ultimately will be
found entitled to indemnification.

     The Agreement and Declaration of Trust provides further that in the event
that any shareholder or former shareholder shall be found to be personally
liable solely by reason of his being a shareholder and not because of acts or
omissions of such person, such shareholder shall be entitled out of assets of
the Registrant to be indemnified against all loss and expense arising from such
liability (provided there is no liability to reimburse any shareholder for taxes
paid by reason of such shareholder's ownership of shares or for losses suffered
by reason of any changes in value of any of Registrant's assets).

     The Agreement and Declaration of Trust (Article IV, Section 2(o)) provides
specifically that the Trustees have the power to purchase and pay for insurance
out of assets of Registrant as they deem necessary or appropriate for the
conduct of its business including policies insuring shareholders, Trustees,
officers, employees, agents, investment managers, principal underwriters or
independent contracts or Registrant against claims or liabilities arising by
reason of such persons holding or having held any such office or position with
Registrant or by reason of any action alleged to have been taken or omitted by
such person in such office or position including any action taken or omitted
that may be determined to constitute negligence whether or not the Registrant
would have the power to indemnify such person against such liability.

     The provisions with respect to indemnification in the Agreement and
Declaration of Trust of Registrant do not affect any rights of indemnification
that persons other than those specifically covered may have whether under
contract or otherwise under law.

                                      C-2

     Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to Trustees, officers, and controlling persons of the
Registrant pursuant to the provisions of Registrant's Agreement and Declaration
of Trust, or otherwise, Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy
as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In
the event that a claim for indemnification against such liability (other than 
the payment by the Registrant of expenses incurred or paid by a Trustee, officer
or controlling person of Registrant in the successful defense of any action, 
suit or proceeding) as asserted by such Trustee, officer or controlling person
in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling 
precedent, submit to a court of appropriate jurisdiction the question of whether
such indemnification by it is against public policy as expressed in the 
Securities Act of 1933 and will be governed by the final adjudication of such
issue.

ITEM 28.  Business and Other Connections of Investment Adviser.

     The names of the directors and officers of the Manager and their
businesses, professions, vocations and employment during the past two fiscal
years, either for their own account or as directors, officers, employees,
partners or Trustees, are as follows:
   
<TABLE>
<CAPTION>
                                                                         (3)
       (1)                        (2)                         Other Business Profession
Name and Principal          Affiliation with                        Vocation or
Business Address           Investment Adviser                  Employment Connection
<S>                      <C>                         <C>


Richard D. Olson        Assistant Vice President -
1 North Main            Sales
Minot, ND 58703

Peter A. Quist          Director, Vice President        Director and Vice President, ND Holdings, 
1 North Main            and Secretary                   Inc.; Director, Vice President and Secretary,
Minot, ND 58703                                         ND Money Management, Inc., ND Capital,
                                                        Inc., ND Resources, Inc., ND Tax-Free
                                                        Fund, Inc., ND Insured Income Fund, Inc.,
                                                        Montana Tax-Free Fund, Inc., South Dakota
                                                        Tax-Free Fund, Inc., Integrity Fund of
                                                        Funds, Inc. and The Ranson Company, Inc.;
                                                        Vice President and Secretary, Ranson
                                                        Managed Portfolios

Shannon D. Radke        Assistant Vice President -
1 North Main            Finance
Minot, ND 58703

     Robert E. Walstad       Director, President, CEO        Director and President, ND Holdings, Inc.;
     1 North Main            and Treasurer                   Director, President and Treasurer, ND
     Minot, ND 58703                                         Money Management, Inc., ND Capital, Inc.,
                                                             ND Resources, Inc., ND Tax-Free Fund, 
                                                             Inc., ND Insured Income Fund, Inc.,
                                                             Montana Tax-Free Fund, Inc., South Dakota
                                                             Tax-Free Fund, Inc. and Integrity Fund of
                                                             Funds, Inc.; Director, President, CEO and
                                                             Treasurer, The Ranson Company, Inc.; 
                                                             Trustee, Chairman, President and Treasurer,
                                                             Ranson Managed Portfolios
</TABLE>    
                                      C-3

ITEM 29.  Principal Underwriters.
   
     (a) Ranson Capital Corporation acts as investment adviser and Manager of
The Kansas Municipal Fund, The Kansas Insured Intermediate Fund, The Nebraska
Municipal Fund, The Oklahoma Municipal Fund, and The Illinois Municipal Fund 
having net assets of $126,514,377, $23,423,645, $27,903,261, and $10,674,397,
and $9,575, respectively, as of November 14, 1997, and also acted as investment
adviser for The Kansas Tax-Exempt Trust Series 1-78 and The Nebraska Tax-Exempt
Trust Series 1-5 until December 29, 1995.      

     (b) The information required by the following table is provided with
respect to each director, officer or partner of each principal underwriter named
in the answer to Item 21.

                          Ranson Capital Corporation

<TABLE> 
<CAPTION> 
       (1)                       (2)                           (3)
                            Positions and 
                            Offices with                  Positions and
Name and Principal          Ranson Capital                   Offices
 Business Address            Corporation                 with Registrant
- - --------------------------------------------------------------------------------
<S>                   <C>                           <C>         
1 North Main
Minot, ND 58703


Richard D. Olson      Assistant Vice President -
                      Sales
Peter A. Quist        Director, Vice President      Vice President and Secretary
                      and Secretary
Shannon D. Radke      Assistant Vice President -
                      Finance

Robert E. Walstad     Director, President, CEO      Trustee, Chairman, President
                      and Treasurer                 and Treasurer
</TABLE>     

ITEM 30.  Location of Accounts and Records.

     First Western Bank & Trust, (the "Custodian"), 900 South Broadway, Minot,
North Dakota 58701, serves as Registrant's Custodian and will maintain all
records related to that function. ND Resources, Inc. ("Resources"), serves as
Registrant's Transfer Agent. Resources also serves as Registrant's accounting
services agent and maintains all records related to that function. Ranson
Capital Corporation serves as Registrant's investment adviser and Manager, as
well as the Distributor and principal underwriter of its shares, and maintains
all records related to those functions. Registrant maintains all of its
corporate records. The address of Resources, Ranson Capital Corporation and
Registrant is 1 North Main, Minot, North Dakota 58703.

ITEM 31.  Management Services.

     Inapplicable.

ITEM 32.  Undertakings.

     Registrant hereby undertakes to furnish each person to whom a Prospectus is
delivered with a copy of the Registrant's latest annual report to shareholders
upon request and without charge.


                                      C-4

                         SIGNATURES AND POWER OF ATTORNEY
   
     Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, Registrant has duly caused this Post-effective
Amendment No. 34 to Registration Statement No. 33-36324 on Form N-1A to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Minot, State of North Dakota, on the 14th day of November, 1997.     


                                       RANSON MANAGED PORTFOLIOS


                                       By /s/ Robert E. Walstad
                                         --------------------------------
                                         Robert E. Walstad
                                         President


     The undersigned each hereby constitutes and appoints Robert E. Walstad his 
attorney-in-fact and agent, for him and in his name, place, and stead, in any 
and all capacities, to sign any and all amendments (including post-effective 
amendments) to Registration Statement No. 33-36324 and to file the same with all
exhibits thereto, and other documents in connection therewith, with the 
Securities and Exchange Commission, granting unto said attorney-in-fact and 
agent full power and authority to do and perform each and every act and thing 
requisite and necessary to be done, as fully to all intents and purposes as he 
might or could do in person, hereby ratifying and confirming all that said 
attorney-in-fact and agent or any of them, or their or his substitute or 
substitutes, may lawfully do or cause to be done by virtue hereof.
   
     Pursuant to the requirements of the Securities Act of 1933 and the 
Investment Company Act of 1940, this Post-effective Amendment No. 34 to 
Registration Statement No. 33-36324 and Power of Attorney have been signed 
below by the following persons in the capacities indicated on November 14, 1997.
    

/s/ Lynn W. Aas                           Trustee
- - ----------------------------------     
Lynn W. Aas

/s/ Orlin W. Backers                      Trustee
- - -----------------------------------            
Orlin W. Backes 

/s/ Arthur A. Link                        Trustee
- - -----------------------------------    
Arthur A. Link 

/s/ Robert E. Walstad                     Trustee, Chairman of the Board,
- - -----------------------------------       President and Treasure         
Robert E. Walstad                                          
                                                                                
                                      C-5

                                 EXHIBIT INDEX

1.   Agreement and Declaration of Trust dated August 10, 1990*

2.   By-Laws*

3.   Inapplicable

4.   Inapplicable

5.   Form of Management and Investment Advisory Agreement between Registrant
     and Ranson Capital Corporation*

6.   (a)  Distribution and Services Agreement between Registrant and Ranson
          Capital Corporation*
     (b)  Form of Dealer Agreement*

7.   Inapplicable
   
8.   Form of Custodian Agreement between Ranson Managed Portfolios and
     First Western Bank and Trust*

9.   (a)  Form of Accounting and Administrative Services Agreement between
          Registrant and Ranson Capital Corporation* 
     (b)  Form of Agency Agreement between Registrant and ND Resources, 
          Inc.*     
    
10.  Opinion of Chapman and Cutler*

11.  Consent of Independent Auditors

12.  Inapplicable

13.  Inapplicable

14.  Inapplicable

15.  Shareholder Services Plan*

16.  Computation of Performance Data*


*Previously filed

                                      C-6


                                                                    EXHIBIT (11)






                   CONSENT OF INDEPENDENT PUBLIC ACCOUNTANT
                   ----------------------------------------

[Letterhead of Brady Martz]
   
We hereby consent to the use in the Statement of Additional Information 
constituting part of this Post-effective Amendment No. 34 to the registration 
statement on Form N-1A (the "Registration Statement") of our report dated 
September 10, 1997 relating to the financial statements and selected per share
data and rations of Kansas Insured Municipal Fund, which appears in such 
Statement of Additional Information and to the incorporation by reference of 
our report into the Prospectus which constitutes part of the Registration 
Statement.  We also consent to the reference to us under the heading 
"Accountant and Reports to Shareholders" in such Statement of Additional 
Information and to the reference to us under the heading "Financial 
Highlights" in the Prospectus and on the back cover of the Prospectus.



/s/  BRADY, MARTZ
- - ------------------------------------
     BRADY, MARTZ & ASSOCIATES, P.C.

November 18, 1997    

<TABLE> <S> <C>


        <S> <C>

<PAGE>
<ARTICLE> 6
       
<S>                             <C>
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          JUL-31-1997
<PERIOD-END>                               JUL-31-1997
<INVESTMENTS-AT-COST>                         25535252
<INVESTMENTS-AT-VALUE>                        26492171
<RECEIVABLES>                                   470210
<ASSETS-OTHER>                                   28972
<OTHER-ITEMS-ASSETS>                                 0
<TOTAL-ASSETS>                                26991353
<PAYABLE-FOR-SECURITIES>                       1343902
<SENIOR-LONG-TERM-DEBT>                              0
<OTHER-ITEMS-LIABILITIES>                       114033
<TOTAL-LIABILITIES>                            1457935
<SENIOR-EQUITY>                                      0
<PAID-IN-CAPITAL-COMMON>                             0
<SHARES-COMMON-STOCK>                          2086938
<SHARES-COMMON-PRIOR>                          2507133
<ACCUMULATED-NII-CURRENT>                            0
<OVERDISTRIBUTION-NII>                               0
<ACCUMULATED-NET-GAINS>                       (717376)
<OVERDISTRIBUTION-GAINS>                             0
<ACCUM-APPREC-OR-DEPREC>                        956919
<NET-ASSETS>                                  25533418
<DIVIDEND-INCOME>                                18227
<INTEREST-INCOME>                              1387755
<OTHER-INCOME>                                       0
<EXPENSES-NET>                                (209195)
<NET-INVESTMENT-INCOME>                        1196787
<REALIZED-GAINS-CURRENT>                      (411602)
<APPREC-INCREASE-CURRENT>                       525690
<NET-CHANGE-FROM-OPS>                          1310875
<EQUALIZATION>                                       0
<DISTRIBUTIONS-OF-INCOME>                    (1196787)
<DISTRIBUTIONS-OF-GAINS>                             0
<DISTRIBUTIONS-OTHER>                                0
<NUMBER-OF-SHARES-SOLD>                         110692
<NUMBER-OF-SHARES-REDEEMED>                     589765
<SHARES-REINVESTED>                              58878
<NET-CHANGE-IN-ASSETS>                       (5030505)
<ACCUMULATED-NII-PRIOR>                              0
<ACCUMULATED-GAINS-PRIOR>                            0
<OVERDISTRIB-NII-PRIOR>                              0
<OVERDIST-NET-GAINS-PRIOR>                           0
<GROSS-ADVISORY-FEES>                           138457
<INTEREST-EXPENSE>                                   0
<GROSS-EXPENSE>                                 249803
<AVERAGE-NET-ASSETS>                          27657523
<PER-SHARE-NAV-BEGIN>                            12.19
<PER-SHARE-NII>                                    .53
<PER-SHARE-GAIN-APPREC>                            .04
<PER-SHARE-DIVIDEND>                             (.53)
<PER-SHARE-DISTRIBUTIONS>                          .00
<RETURNS-OF-CAPITAL>                               .00
<PER-SHARE-NAV-END>                              12.23
<EXPENSE-RATIO>                                    .76<F1>
<AVG-DEBT-OUTSTANDING>                               0
<AVG-DEBT-PER-SHARE>                                 0
<FN>
<F1>Ratio of net expenses to average net assets.
</FN>
        

</TABLE>


<PAGE>

                                                                    Exhibit 99.1
 
                    AVERAGE ANNUAL TOTAL RETURN CALCULATION
   
     The Kansas Insured Intermediate Fund Series' average annual total return
     for the period from the commencement of operations on November 23, 1992,
     to July 31, 1997, was 4.98%, calculated as follows:     

     P(1+T)n = ERV

Where:
    
     P  = a hypothetical initial payment of $1,000
   
     T  = average annual total return = 4.98%
     n  = number of years = 4.69 years
   ERV  = ending redeemable value of a hypothetical $1,000 payment made at the 
                  beginning of the base period, assuming reinvestment of all
                  dividends and distributions = $1,255.69    


                           TOTAL RETURN CALCULATION
   
     The total return for the period from commencement of operations on November
     23, 1992, to July 31, 1997, for The Kansas Insured Intermediate Fund was
     29.12%, calculated as follows:     


     TR =  ERV - P
           -------
              P

Where:
   
     TR   = Total return = 29.12%.
     ERV  = ending redeemable value of a hypothetical $1,000 payment made at the
             beginning of the base period, assuming reinvestment of all
             dividends and distributions = $1,291.19
     P    = a hypothetical initial payment of $1,000    


                                 CURRENT YIELD

   
     The current yield for the one-month period ending July 31, 1997, was 3.69%
calculated as follows:     
                                   ___         ___
                                   |(a-b    )6   |  
                            CY = 2 |(--- + 1) - 1|
                                   |(cd     )    |
                                   ___         ___

Where:
   
     a = Dividends and interest earned during the one-month period ending July
         31, 1997

     b = Expenses accrued for the one-month period ending July 31, 1997

     c = Average daily number of shares outstanding during the one-month period
         July 31, 1997, that were entitled to receive dividends

     d = The maximum offering price per share on July 31, 1997    


                             TAX EQUIVALENT YIELD

   
     The tax equivalent yield for the one-month period ending July 31, 1997, was
     8.48%, calculated as follows:     

        TEY = CY
            ---------
            (1-SITR)

    Where:
   
        TEY = Tax equivalent yield = 8.48%
        CY  = Current yield = 3.69%     
        SITR = Stated Income tax rate = 43.50%    


                              DISTRIBUTION RETURN
   
     The distribution return for the one-month period ending July 31, 1997 was
     4.23%.    

DR =     IPS(360)/30  
         ------------
              POP

Where:    

DR =    Distribution return = 4.23%
IPS =   Income per share = .044442
POP =   Public offering price per share = 12.60    


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