INSTITUTIONAL GOVERNMENT ADJUSTABLE FUND
A SERIES OF
PIPER INSTITUTIONAL FUNDS INC.
Supplement dated January 25, 1996 to
Prospectus dated November 1, 1995
The section of the prospectus on page 27 entitled "Special Purchase Plans --
Purchases by Other Individuals Without a Sales Charge" is amended by adding the
following paragraph:
American Government Term Trust Inc. ("AGT"), a closed-end fund which
was managed by the Adviser, recently dissolved and distributed its net
assets to shareholders. Former AGT shareholders may invest the
distributions received by them in connection with such dissolution in
shares of the Fund without payment of a sales charge. (Any such sales
are subject to the eligibility of Fund share purchases in the
shareholder's state as well as the minimum investment requirements and
other applicable terms set forth in this Prospectus.)
