MARKETVEST GROUP OF FUNDS
MARKETVEST EQUITY FUND
MARKETVEST PENNSYLVANIA INTERMEDIATE MUNICIPAL BOND FUND
MARKETVEST SHORT-TERM BOND FUND
MARKETVEST INTERMEDIATE U.S. GOVERNMENT BOND FUND
(PORTFOLIOS OF MARKETVEST FUNDS, INC. AND MARKETVEST FUNDS)
SUPPLEMENT TO COMBINED PROSPECTUS DATED JANUARY 5, 1996
1.Please delete the last sentence of the sub-section entitled "Risk Factors,"
which begins on page 1 of the prospectus, and replace it with the
following:
"These risks and those associated with investing in mortgage-backed
securities, when-issued securities, options, variable rate securities,
and securities which may be considered to be "derivatives" are described
under the sections "Investment Objective and Policies of Each Fund,"
"Portfolio Investments and Strategies," and "Derivative Contracts and
Securities."
2. On page 23 of the prospectus, please delete the first sentence of the
section entitled "PURCHASES AT NET ASSET VALUE." and replace with the
following:
"Shares of the Funds may be purchased at net asset value, without a
sales charge, by the Trust and Financial Services Division of Dauphin
Deposit and their affiliates for accounts which the Trust and Financial
Services Division serves in the capacity of Trustee, Guardian, Attorney-
in-fact, Executor, Administrator, Investment Manager, Investment
Advisor, Managing Agent, or Custodian under the Uniform Gifts to Minors
Act, by trust companies, by trust departments of other financial
institutions, and by banks and savings and loans (savings associations)
for their own accounts."
3. On page 25 of the prospectus, please insert the following after the
section entitled "Systematic Investment Program" and add the title
"Exchanging Securities for Fund Shares" to the Table of Contents on page I
of the prospectus.
"EXCHANGING SECURITIES FOR FUND SHARES
The Funds may accept securities in exchange for Fund shares. A Fund will
allow such exchanges only upon the prior approval of the Fund and a
determination by the Fund and the Adviser that the securities to be
exchanged are acceptable.
Any securities exchanged must meet the investment objective and policies
of the Fund, must have a readily ascertainable market value, must be
liquid, and must not be subject to restrictions on resale. The market
value of any securities exchanged in an initial investment, plus any
cash, must be at least $25,000.
Securities accepted by the Fund will be valued in the same manner as the
Fund values its assets. The basis of the exchange will depend upon the
net asset value of Fund shares on the day the securities are valued. One
share of the Fund will be issued for each equivalent amount of
securities accepted.
Any interest earned on the securities prior to the exchange will be
considered in valuing the securities. All interest, dividends,
subscription or other rights attached to the securities become the
property of the Fund, along with the securities."
4.On page 35 of the prospectus, please revise the since inception average
annual total return (reflecting load) for the Employee Benefit Short-Term
Fixed Income Fund (Marketvest Short-Term Bond Fund) to 7.08%. In addition,
please revise the since inception average annual total return (without
load) for the Employee Benefit Short-Term Fixed Income Fund
(Marketvest Short-Term Bond RE Fund) to 7.38%.
February 15, 1996
EDGEWOOD SERVICES, INC.
Distributor
A subsidiary of FEDERATED INVESTORS
Federated Investors Tower
PITTSBURGH, PA 15222-3779
CUSIP 57061E105
CUSIP 57061E204
CUSIP 57061E303
CUSIP 57061D107
