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stroke
LIBERTY MUNICIPAL SECURIITIES FUND, INC.
CLASS A SHARES
Supplement to Prospectus Dated May 5, 1993
1) Please delete the second sentence and list of funds in the section entitled
"Liberty Family of Funds
" on pages 3 and 4 and replace it with the following:
"The other funds in the Liberty Family of Funds are the Class A Shares of:
oAmerican Leaders Fund, Inc., providing growth of capital and
income through high-quality stocks;
oCapital Growth Fund, providing appreciation of capital
primarily through equity securities;
oFund for U.S. Government Securities, Inc., providing current
income through long-term U.S. government securities;
oInternational Equity Fund, providing long-term capital growth
and income through international securities;
oInternational Income Fund, providing a high level of current
income consistent with prudent investment risk through high-
quality debt securities denominated primarily in foreign
currencies;
oLiberty Equity Income Fund, Inc., providing above-average
income and capital appreciation through income producing equity
securities;
oLiberty High Income Bond Fund, Inc., providing high current
income through high-yielding, lower-rated corporate bonds;
oLiberty U.S. Government Money Market Trust, providing current
income consistent with stability of principal through high-
quality U.S. government securities;
oLiberty Utility Fund, Inc., providing current income and long-
term growth of income, primarily through electric, gas, and
communications utilities;
oLimited Term Fund, providing a high level of current income
consistent with minimum fluctuation in principal value through
investment grade securities;
oLimited Term Municipal Fund, providing a high level of current
income exempt from federal regular income tax consistent with
the preservation of principal, primarily limited to municipal
securities;
oMichigan Intermediate Municipal Trust, providing current income
exempt from federal regular income tax and the personal income
taxes imposed by the state of Michigan and Michigan
municipalities, primarily through Michigan municipal securities;
oPennsylvania Municipal Income Fund, providing current income
exempt from federal regular income tax and the personal income
taxes imposed by the Commonwealth of Pennsylvania, primarily
through Pennsylvania municipal securities;
oStrategic Income Fund, providing a high level of current income
, primarily through domestic and foreign corporate debt
obligations;
oTax-Free Instruments Trust, providing current income consistent
with stability of principal and exempt from federal income tax,
through high-qualty, short-term municipal securities; and
oWorld Utility Fund, providing total return through securities
issued by domestic and foreign companies in the utilities
iindustries."
2) Please delete the first paragraph of the section entitled "Dealer
Concession" which appears on page 10 of the prospectus and replace it with
the following:
"For sales of Shares a dealer will normally receive up to 90% of
the applicable sales charge. Any portion of the sales charge
which is not paid to the dealer will be retained by the
Distributor. However, the distributor may offer to pay dealers
up to one-hundred percent of the sales load retained by it.
Such payments may take the form of cash or promotional
incentives, such as payment of certain expenses of qualified
employees and their spouses to attend informational meetings
about the Fund or other special events at recreational-type
facilities, or of items of material value. In some instances,
these incentives will be made available only to dealers whose
employees have sold or may sell significant amount of Shares."
3) Please delete the last sentence of the section entitled "Purchases With
Proceeds From Redemption of
Unaffiliated Investment Companies," which appears on page 11, which states,
"Federated Securities Corp. will offer to pay dealers an amount equal to .50
of 1.00% of the net asset value of Shares purchased by their clients or
customers in this manner."
4) Please delete the last three sentences of the section entitled "Exchange
Privilege" on page 12 and replace them with the following:
"These exchanges are made at net asset value plus the difference
between the Fund's sales charge already paid and any sales
charge of the fund into which the Shares are to be exchanged, if
higher. Neither the Fund nor any of the funds in the Liberty
Family of Funds imposes any additional fees on exchanges. "
5) Please delete the first sentence of the first paragraph of the section
entitled "Redemption Fee" on page 15 and replace it with the following:
"Shareholders who purchased Shares with the proceeds of a
redemption of shares of a mutual fund sold with a sales charge
and not distributed by Federated Securities Corp. prior to June
1, 1994, will be charged a redemption fee by the Fund's
distributor of .50 of 1% for redemptions made within one year of
purchase. Purchases under the program made after that date will
not be subject to any type of redemption fee."
May 30, 1994
FEDERATED SECURITIES CORP.
Distributor
G00098-03 (5/94)
