WORLDWIDE INDEX FUNDSSM
Supplement dated December 30, 1998 to
the Prospectus dated September 1, 1998
This supplement provides new and additional information beyond that contained in
the Prospectus. It should be retained and read in conjunction with the
Prospectus.
(All page numbers are in reference to the prospectus, unless otherwise noted)
On page 2, delete the second full paragraph in the second column, and replace
with the following:
Each Fund of Index Funds will invest in I Class shares of its
underlying Country Index Funds and will allocate its investments in
equal proportion to each of the underlying Country Index Funds in which
it invests. Therefore, the Europe Index Fund, which invests in eight
underlying Country Index Funds, will invest one-eighth (12.5%) of its
assets in each of the eight underlying Funds. The International Index
Fund, which invests in eleven underlying Country Index Funds, will
invest one-eleventh (9.1%) of its assets in each of the eleven
underlying Funds. Each Fund of Index Funds will reallocate its
investments at least quarterly.
In the FUNDS OF INDEX FUNDS table at the bottom of page 7, delete the following
parenthetical statement:
(and approximate allocation percentage as of June 30, 1998)
In the same table, delete the percentage figures following each Underlying
Country Index Fund.
Under the sub-headings Classes on page 10, and Purchase of Shares on page 11,
insert the following:
The minimum initial investment is changed to $1,000 for R Class shares
of any Fund, including individual retirement accounts ("IRAs") and Roth
IRAs.
Under the sub-heading Redemption of Shares on page 13, delete the italicized
paragraph in the second column.
Under the sub-heading Procedures for Redemptions on page 13, insert the
following:
The time by which telephone redemption requests must be made is changed
to 4:00 p.m., Eastern Time (1:00 p.m., Pacific Time), on any Business
Day.
Following the paragraph under the sub-heading Transactions Over the Telephone
on page 14, insert the following:
Exchanges
You may exchange R Class shares of a Fund for R Class shares of any
other Fund, and you may exchange I Class shares of a Fund for I Class
shares of any other Fund. Exchanges will be based on the respective net
asset values of the shares involved. Exchanges may be made by letter or
by telephone subject to the procedures set forth below. There will be
no purchase fee charged for exchanges.
Money Market Fund Option -- You may also exchange R Class and I Class
shares of any Fund for shares of a money market fund, the Government
Obligations Fund managed by Federated Management (the "Money Market
Fund"). Shares of the Money Market Fund may then be exchanged for
shares of any Fund. No purchase fee will be charged on exchanges of
assets that have previously been invested in the Funds and were charged
a purchase fee. Assets that have not been invested previously in a Fund
will be charged a purchase fee the first time they are invested in a
Fund through either a purchase or an exchange. Information regarding
the Money Market Fund is found in a separate prospectus which is
available from the Distributor. You should review the Money Market Fund
prospectus before making any investment. Nonetheless, to the extent
that this supplement conflicts with any disclosure in the Money Market
Fund prospectus, this supplement shall govern.
Please note that orders for purchases, redemptions and exchanges must
be received by 4:00 p.m. Eastern Time. Purchases of, and exchanges
into, shares of the Money Market Fund are subject to a $1,000 minimum
investment limit. When purchasing shares of the Money Market Fund,
federal funds received before 4:00 p.m. Eastern Time will begin earning
dividends on the next business day and will earn dividends through the
day of redemption. Proceeds from redemption requests made before 4:00
p.m. Eastern Time will be wired the next business day. If shares are
purchased by check, funds will not be available for redemptions until
the purchase payment has been collected, which may take up to 10
business days from the purchase date.
Exchange Procedures -- To exchange your shares, you (or your Financial
Intermediary) need to provide certain information, including the name
on the account, the account number (or your taxpayer identification
number), the number or dollar value of shares (or the percentage of the
total value of your account) you want to exchange, and the names of the
Funds involved in the exchange transaction. Exchanges may be made only
between identically registered accounts.
Exchange orders for exchanges into another Fund must be received by
4:00 p.m., Eastern Time. The exchange privilege may be modified or
discontinued at any time.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
