Supplement to
Prospectus dated May 1, 1996
of State Bond Common Stock Fund
***
Prospectus of Federated Growth Strategies Fund
Proxy Statement of State Bond Common Stock Fund
dated November 2, 1996
On November 15, 1996, after taking into account the relatively large
percentage of unrealized capital gains in the portfolio of State Bond Common
Stock Fund (the `Fund''), the continued strong performance of the stock market
generally, the proposed reorganization (the `Reorganization'') with the
Federated Growth Strategies Fund (the `Federated Fund''), and concerns
expressed on behalf of the Federated Fund with respect to the Fund's unrealized
capital gains position, the Board of Directors of the Fund determined that it
would be in the best interests of the Fund and its shareholders to realize a
portion of the unrealized capital gains prior to the Reorganization. The Board
anticipates that under current market conditions, capital gains for the year
will be realized by the Fund in the range of approximately $1.80 to $2.30 per
share. Any capital gains so realized will be distributed to the Fund's
shareholders by year end, and will be subject to federal income tax. Any
unrealized capital gains as of the date of the Reorganization would be
transferred to the Federated Fund in the Reorganization. If there are any
questions regarding this distribution, shareholders should consult their tax
advisors as to their personal tax situation.
The Reorganization is subject to a number of conditions to closing,
including receipt of approval from the shareholders of the Fund.
In view of the above, the Board of Directors also determined to temporarily
suspend sales of shares of the Fund.
The date of this supplement is November 15, 1996.
