% Crop Marks
.5 setlinewidth
/markl 9 def
/whitel 4 def
/top 72 def
/bottom 122 def
/left 45 def
/right 45 def
%horizontals
left markl sub whitel sub wp$y wp$top sub moveto markl 0 rlineto
wp$x right sub left sub whitel 2 mul add 0 rmoveto markl 0
rlineto
left markl sub whitel sub bottom moveto markl 0 rlineto
wp$x right sub left sub whitel 2 mul add 0 rmoveto markl 0
rlineto
%verticals
left bottom markl sub whitel sub moveto 0 markl rlineto
0 wp$y wp$top sub bottom sub whitel 2 mul add rmoveto 0 markl
rlineto
wp$x right sub bottom markl sub whitel sub moveto 0 markl
rlineto
0 wp$y wp$top sub bottom sub whitel 2 mul add rmoveto 0 markl
rlineto
stroke
FEDERATED ARMS FUND
Institutional Shares
Supplement to the Prospectus dated October 31, 1993
Please delete the second paragraph of the section entitled
"General Information" on page 3 of the prospectus and replace it
with the following:
"Shares are sold primarily to accounts for which
financial institutions act in a fiduciary or agency
capacity, and other accounts where a financial
institution maintains master accounts with an
aggregate investment of at least $400 million in
certain mutual funds which are advised or distributed
by affiliates of Federated Investors. Shares are also
made available to financial intermediaries, public,
and private organizations. An investment in the Fund
serves as a convenient means of accumulating an
interest in a professionally managed, diversified
portfolio which invests at least 65% of the value of
its total assets in U.S. government securities, all of
which government securities will be adjustable and
floating rate mortgage securities which are issued or
guaranteed as to payment of principal and interest by
the U.S. government, its agencies or
instrumentalities. In addition, the Fund is designed
to provide an appropriate investment for particular
financial institutions that are subject to government
agency regulations, including credit unions, savings
associations, and national banks. A minimum initial
investment of $25,000 over a 90-day period is
required. "
September 7, 1994
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated
Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
314082108
G00624-01 (9/94 )
