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stroke
LIBERTY HIGH INCOME BOND 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 three and four and replace it with the following:
"The other funds in the Liberty Family of Funds are the Class A Shares of:
o American Leaders Fund, Inc., providing growth of capital and income
through high-quality stocks;
o Capital Growth Fund, providing appreciation of capital primarily
through equity securities;
o Fund for U.S. Government Securities, Inc., providing current income
through long-term U.S. government securities;
o International Equity Fund, providing long-term capital growth and
income through international securities;
o International Income Fund, providing a high level of current income
consistent with prudent investment risk through high-quality debt
securities denominated primarily in foreign currencies;
o Liberty Equity Income Fund, Inc., providing above-average income and
capital appreciation through income producing equity securities;
o Liberty Municipal Securities Fund, Inc., providing a high level of
current income exempt from federal regular income tax through municipal
bonds;
o Liberty U.S. Government Money Market Trust, providing current income
consistent with stability of principal through high-quality U.S.
government securities;
o Liberty Utility Fund, Inc., providing current income and long-term
growth of income, primarily through electric, gas, and communications
utilities;
o Limited Term Fund, providing a high level of current income consistent
with minimum fluctuation in principal value through investment grade
securities;
o Limited 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;
o Michigan 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;
o Pennsylvania 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;
o Strategic Income Fund, providing a high level of current income,
primarily through domestic and foreign corporate debt obligations;
o Tax-Free Instruments Trust, providing current income consistent with
stability of principal and exempt from federal income tax, through high-
quality, short-term municipal securities; and
o World Utility Fund, providing total return through securities issued by
domestic and foreign companies in the utilities industries."
2) Please delete the last sentence of the section entitled "Purchases With
Proceeds from Redemptions of Unaffiliated Investment Companies," which
appears on page 12, which states, "Federated Securities Corp. will offer to
pay dealers an amount equal to .50 of 1% of the net asset value of Shares
purchased by their clients or customers in this manner."
3) Please delete the last three sentences of the section entitled "Exchange
Privilege" on page 13 and rep
lace 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. Participants in a plan under the Liberty
Family Retirement Program may exchange all or some of their Shares for
Class A Shares of other funds offered under the plan at net asset
value."
4) Please delete the first sentence of the first paragraph of the section
entitled "Redemption Fee" on pa
ge 16 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
G00098-02 (5/94)
