FUND FOR U.S. GOVERNMENT SECURITIES, 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 of the prospectus 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;
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 Municipal Securities Fund, Inc., providing a high level of
current income exempt from federal regular income tax through
municipal bonds;
oLiberty U.S. Government Money Market Trust, providing current
ncome 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 min
imum 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 9 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
amounts 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 10 of the prospectus, 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 11 of the prospectus and replace them with the
following:
"These exchanges are made at net asset value plus the difference between
the Fun
d'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."
5) Please delete the first sentence of the first paragraph of the section
entitled "Redemption Fee" on page 14 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
G00098-04 (5/94)
