Filed Pursuant to Rule 497(e)
1933 Act Registration No. 33-40496
SUPPLEMENT DATED APRIL 1, 1996
TO THE PROSPECTUS DATED AUGUST 1, 1995
OF
IAI BALANCED FUND (a separate portfolio of IAI Investment Funds
VI, Inc.)
On March 21, 1996, the shareholders of the above-referenced
Fund approved IAI's proposal, effective April 1, 1996, to
eliminate the Fund's Plan of Distribution and corresponding
underwriting agreement with IAI Securities, Inc. and to replace
the Fund's management and administrative agreements with a new
contract between the Fund and IAI. Under this new contract, IAI
will provide, or arrange for the provision of, all services
required by the Fund in exchange for one all-inclusive fee. The
new contracts are not intended to result in a fee change.
Because of these changes, certain portions of this Prospectus
have been updated as set forth below.
FUND EXPENSE INFORMATION
The following replaces the material after the table
"Shareholder Transaction Expenses".
<TABLE>
<CAPTION>
Annual Fund Operating Expenses*
<S> <C>
IAI Balanced
Fund
Management Fee 1.25%
Rule 12b-1 Fee None
Other Expenses None
Total Fund Operating Expenses 1.25%
____________________________________________
<FN>
<FN1>
* as a percentage of average daily net assets
</FN>
</TABLE>
Example:
Based upon the levels of Total Fund Operating Expenses
listed above, you would pay the following expenses on a $1,000
investment, assuming a five percent annual return and redemption
at the end of each period:
<TABLE>
<S> <C> <C> <C>
<C>
1 Year 3 5 10
Years Years Years
Balanced Fund $ 13 $ 40 $ 69 $ 151
</TABLE>
The purpose of the above table is to assist you in
understanding the various costs and expenses that an investor in
the Fund will bear directly or indirectly. The information in
the table has been restated to reflect the Fund's fees as amended
effective April 1, 1996. The example should not be considered a
representation of past or future expenses. Actual expenses may
be greater or less than those shown.
Further information concerning fees paid by the Fund is set
forth in the section "Management" below and in the Statement of
Additional Information.
MANAGEMENT
The following replaces the discussion of Fund
administrative and advisory fees, as well as Fund costs.
Effective April 1, 1996, the Fund has entered into a written
agreement with IAI (the "Management Agreement"), under which IAI
provides the Fund with investment advisory services and is
responsible for the overall management of the Fund's business
affairs subject to the authority of the Board of Directors. The
Management Agreement also provides that, except for brokerage
commissions and other expenditures in connection with the
purchase and sale of portfolio securities, interest and, in
certain circumstances, taxes and extraordinary expenses, IAI
shall pay all of the Fund's operating expenses. As compensation
under the Management Agreement, the Fund will pay IAI 1.25% of
its average daily net assets, which fee declines to 1.10% of
average daily net assets as the amount of assets in the Fund
grows. Because IAI is paying Fund operating expenses, these fees
represent the Fund's total expenses. With respect to certain of
the services for which it is responsible under the Management
Agreement, IAI may also pay qualifying broker-dealers, financial
institutions and other entities for providing such services to
Fund shareholders.
Under the replaced Advisory Agreement, for the fiscal year
ended March 31, 1996, the Fund paid IAI advisory fees of .75% of
the Fund's average month-end net assets. Under the replaced
Administrative Agreement, for the fiscal year ended March 31,
1996, the Fund paid IAI administrative fees of .20% of such
Fund's average month-end net assets.
PLAN OF DISTRIBUTION
The entire section, except the last paragraph, is
eliminated.
Filed Pursuant to Rule 497(e)
1933 Act Registration No. 33-40496
SUPPLEMENT DATED APRIL 1, 1996
TO THE STATEMENT OF ADDITIONAL INFORMATION DATED AUGUST 1, 1995
OF
IAI BALANCED FUND (a separate portfolio of IAI Investment Funds
VI, Inc.)
On March 21, 1996, the shareholders of the above-referenced
Fund approved IAI's proposal, effective April 1, 1996, to
eliminate the Fund's Plan of Distribution and corresponding
underwriting agreement with IAI Securities, Inc. and to replace
the Fund's management and administrative agreements with a new
contract between the Fund and IAI. Under this new contract, IAI
will provide, or arrange for the provision of, all services
required by the Fund in exchange for one all-inclusive fee. The
new contract is not intended to result in a fee change. Because
of these changes, this Statement of Additional Information has
been updated as set forth below.
Management Agreement
Effective April 1, 1996, the Fund entered into new written
agreement with IAI (the "Management Agreement"). Pursuant to the
Management Agreement between the Fund and IAI, IAI has agreed to
provide the Fund with investment advice, statistical and research
facilities, and certain equipment and services, including, but
not limited to, office space and necessary office facilities,
equipment, and the services of required personnel and, in
connection therewith, IAI has the sole authority and
responsibility to make and execute investment decisions for the
Fund within the framework of such Fund's investment policies,
subject to review by the directors of the Fund. In addition, IAI
has agreed to provide or arrange for the provision of all
required administrative, stock transfer, redemption, dividend
disbursing, accounting, and shareholder services including,
without limitation, the following: (1) the maintenance of the
Fund's accounts, books and records; (2) the calculations of the
daily net asset value in accordance with the Fund's current
Prospectus and Statement of Additional Information; (3) daily and
periodic reports; (4) all information necessary to complete tax
returns, questionnaires and other reports requested by the Fund;
(5) the maintenance of stock registry records; (6) the processing
of requested account registration changes, stock certificate
issuances and redemption requests; and (7) the administration of
payments and dividends and distributions declared by the Fund;
(8) answering shareholder questions, (9) providing reports and
other information and (10) other services designed to maintain
shareholder accounts. IAI may also pay qualifying broker-
dealers, financial institutions and other entities that provide
such services. In return for such services, the Fund has agreed
to pay IAI an annual fee as a percentage of such Fund's average
daily net assets as set forth below:
<TABLE>
<CAPTION>
Daily Net Assets Fee IAI Receives
Annually
<C> <C>
For the first $250 million 1.25%
For the next $250 million 1.20%
Above $500 million 1.10%
</TABLE>
Except for brokerage commissions and other expenditures in
connection with the purchase and sale of portfolio securities,
interest expense, and, subject to the specific approval of a
majority of the disinterested directors of the Fund, taxes and
extraordinary expenses, IAI has agreed to pay all of the Fund's
other costs and expenses, including, for example, costs incurred
in the purchase and sale of assets, taxes, charges of the
custodian of the Fund's assets, costs of reports and proxy
material sent to Fund shareholders, fees paid for independent
accounting and legal services, costs of printing Prospectuses for
Fund shareholders and registering Fund shares, postage, insurance
premiums, and costs of attending investment conferences. The
Management Agreement further provides that IAI will either
reimburse the Fund for the fees and expenses it pays to directors
who are not "interested persons" of such Fund or reduce its fee
by an equivalent amount. IAI is not liable for any loss suffered
by the Fund in the absence of willful misfeasance, bad faith or
negligence in the performance of its duties and obligations.
