[LOGO]
THE PRINCOR MUTUAL FUNDS
August 11, 1997
Dear Shareholder
Proxy material for the Princor Funds' Special Meeting of Shareholders to be held
on September 16, 1997 was mailed to you recently. According to our records, your
completed proxy ballot for this meeting has not yet been received. Enclosed for
your convenience is a duplicate proxy ballot and a postage-paid return envelope.
For the reasons set forth in the proxy statement dated July 7, 1997 which was
included in the initial mailing, your Directors believe passage of the proposals
on the agenda is in the best interest of the Funds and its shareholders and
recommends a vote FOR the proposals.
Regardless of the number of shares you may own, it is important that they be
represented. We urge you to sign, date, and mail the enclosed proxy ballot
promptly. Shareholders may vote by phone by calling our proxy solicitor, D.F.
King & Co., Inc. at 1-800-659-5550.
If you have recently mailed your proxy ballot, you may disregard this mailing.
We appreciate your support as a shareholder and for selecting the Princor Funds
to help reach your financial goals.
Sincerely
/s/ STEPHAN L. JONES
Stephan L. Jones
President
