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stroke
American Leaders Fund
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 page 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:
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 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 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-
quality, short-term municipal securities; and
oWorld 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 Redemption of
Unaffiliated Investment Companies," which appears on pages 9 and 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."
3) Please delete the first sentence of the first paragraph of the section
entitled "Redemption Fee" on page 13 of the prospectus 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."
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 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."
5) Please delete the first paragraph under the section entitled "Dealer
Concession" which appears on page 8 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 expenses, 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.
6) Please add the following as a final paragraph under the section entitled
"Dealer Concession" which app
ears on page 8 of the prospectus:
"Effective June 1, 1994, and until further notice, the entire amount of
the applicable sales charge will be reallowed to dealers. In addition,
the distributor will pay dealers additional bonus payments in an
amount equal to 0.50 of 1% of the public offering price of the Shares
sold."
May 30, 1994
FEDERATED SECURITIES CORP.
Distributor
G00098-01 (5/94)
