FIRST OMAHA FUNDS
Supplement
DATED MAY 25, 1999
to the Prospectus
DATED JULY 10, 1998
THE BOARD OF DIRECTORS OF THE FIRST OMAHA FUNDS, INC. HAS APPROVED CERTAIN
CHANGES RELATING TO THE FIRST OMAHA U.S. GOVERNMENT OBLIGATIONS FUND (THE
"FUND"). THESE CHANGES ARE DESCRIBED BELOW. EACH OF THE CHANGES WILL BE
EFFECTIVE COMMENCING ON JUNE 15, 1999. THIS SUPPLEMENT SHOULD BE RETAINED FOR
FUTURE REFERENCE.
- -CHANGE OF NAME. The name of the First Omaha U.S. Government Obligations Fund
will be changed to the First Omaha U.S. Government Money Market Fund. The
purpose of the change is to make it easier to identify the Fund by its name as
a money market fund.
- -EXPANSION OF INVESTMENT POLICIES. The First Omaha U.S. Government Obligations
Fund's authority to invest in the securities of agencies or instrumentalities
of the U.S. government is currently limited to those which are backed by the
full faith and credit of the U.S. government. The Fund's investment adviser
has indicated it may be able to increase the yield of the Fund if its
investment policies are expanded to permit investments in agency or
instrumentality securities that are not backed by the full faith and credit of
the U.S. government. No assurances can be given that these obligations will be
used and if used that the Fund's yield will actually increase. Under the
expanded policies adopted by the Board, the Fund may invest not only in
obligations of certain agencies and instrumentalities of the U.S. government
which are backed by the full faith and credit of the U.S. government, but also
in such obligations that are supported only by the right
of the issuer to borrow from the U.S. Treasury (such as those of the Federal
National Mortgage Association), by the discretionary authority of the U.S.
government to purchase the agency's obligations (such as those of the Student
Loan Marketing Association and the Federal Home Loan Banks), or by the credit
of the instrumentality (such as those of the Federal Farm Credit Banks). No
assurance can be given that the U.S. government would provide financial
support to U.S. government-sponsored agencies or instrumentalities if it is
not obligated to do so by law. The First Omaha U.S. Government Obligations
Fund will invest in the obligations of such agencies or instrumentalities only
when the Fund's investment adviser determines that they present minimal credit
risks.
- -VALUATION OF SHARES. The Board of Directors has approved a change in the time
at which the First Omaha U.S. Government Obligations Fund's net asset value is
determined and its shares are priced from 2:00 p.m. Eastern Time to 4:00 p.m.
Eastern Time on each "Business Day" (as that term is defined in the
Prospectus). Pursuant to this change, any orders to purchase shares of the
Fund received prior to 4:00 p.m. on any Business Day will be executed at the
net asset value determined that day, and any orders received after 4:00 p.m.
will be executed at the next determined net asset value.
If you have questions about these new policies, please call First Omaha Funds at
1-800-OMAHA-03.
(LOGO) FIRST OMAHA
FAMILY OF FUNDS
507630
