WORLDWIDE INDEX FUNDSSM
Supplement dated December 17, 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.
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.
WA05/62749.4
