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 "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 manages assets, 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 Fund) to 7.38%.
February 13, 1996
PA
EDGEWOOD SERVICES, INC.
Distributor
A subsidiary of FEDERATED
INVESTORS
Federated Investors Tower
PITTSBURGH, PA 15222-3779
CUSIP 57061E105
CUSIP 57061E204
CUSIP 57061E303
CUSIP 57061D107
