Vision U.S. Government Securities Fund Vision New York Municipal Income Fund
Vision Growth & Income Fund Vision Capital Appreciation Fund Vision Equity
Income Fund (Portfolios of Vision Group of Funds, Inc.)
Supplement to Combined Prospectus dated August 31, 1998
1. Effective June 1, 1999, all shares of VISION U.S. GOVERNMENT SECURITIES FUND,
VISION NEW YORK MUNICIPAL INCOME FUND, VISION GROWTH & INCOME FUND, VISION
CAPITAL APPRECIATION FUND, and VISION EQUITY INCOME FUND were redesignated as
Class A Shares.
2. The Vision Group of Funds, Inc. has added a new portfolio, the VISION LARGE
CAP GROWTH FUND. Although this fund was declared effective by the Securities
and Exchange Commission on June 1, 1999, it is not yet available to the
public for investment.
3. Clarifications have been made to the VISION GROWTH & INCOME FUND to reflect
its percentage emphasis on mid-cap stocks that are undervalued. Accordingly,
please delete the first sentence in paragraph three under the VISION GROWTH &
INCOME FUND'S "Investment Policies" section on page 11 of the prospectus and
replace with the following:
"In selecting investments, the Adviser intends to invest at least 65% of
the Fund's total assets in mid-size (mid-cap) companies that are
regarded as "undervalued." It is anticipated that the Fund's portfolio
companies will have an average weighted market capitalization of $1
billion to $10 billion at the time of investment, which could be
considered the mid-capitalization sector of the market."
In addition, please delete the following from paragraph five under the
VISION GROWTH & INCOME FUND'S "Investment Policies" section on page 11 of the
prospectus:
"Although the Adviser may focus on a "value" approach in selecting
investments, the Adviser may also invest in growth stocks because they
can offer greater potential for price appreciation than value stocks due
to favorable market conditions or new products and services."
4. Clarifications have been made to the VISION CAPITAL APPRECIATION FUND to
reflect its percentage emphasis on mid-cap stocks that offer growth
opportunities. Accordingly, please revise the last sentence in paragraph one
under the VISION CAPITAL APPRECIATION FUND'S "Investment Policies" section on
page 12 of the prospectus to read as follows:
"The Adviser, may, however, select for purchase common stocks of
well-known companies with individual market capitalizations of over $10
billion, as well as companies that have individual market
capitalizations as low as $250 million, if it believes such common
stocks offer particular opportunities for long-term capital appreciation
(growth). At least 65% of the Fund's total assets will be in
mid-capitalization securities that are regarded as having growth
opportunities."
5. Please add the following as the sixth bullet point under the VISION CAPITAL
APPRECIATION FUND'S "Acceptable Investments" section on page 12 of the
prospectus:
"o asset backed securities."
<PAGE>
6. Clarifications have been made to the VISION EQUITY INCOME FUND to reflect its
emphasis on stocks that are undervalued. Accordingly, please revise the third
sentence in paragraph two under the VISION EQUITY INCOME FUND'S "Investment
Policies" section on page 13 of the prospectus to read as follows:
"In selecting investments, the Adviser intends to invest at least 65% of
the Fund's total assets in large capitalization ("large-cap") companies
that are regarded as "undervalued." Large cap companies are those
companies with a market capitalization of at least $10 billion or more
at the time of investment."
7. Effective June 1999, John J. Clark, III became the sole portfolio manager of
the VISION CAPITAL APPRECIATION FUND. Mr. Clark joined M&T Bank as Vice
President and Senior Portfolio Manager of M&T Capital Advisors Group in April
1998. Most of his 16-plus years of investment experience took place at
Cornell University where he was part of the in-house investment organization
where he helped to manage the University's endowment. Immediately prior to
joining M&T Bank, Mr. Clark was with Marine Midland Bank as a Senior
Portfolio Manager from 1994 to April 1998. Mr. Clark obtained his B.S. from
Cornell University and M.B.A. from Virginia Commonwealth University and is
also a Chartered Financial Analyst.
June 29, 1999
Federated Securities Corp.
Distributor
Federated Investors Tower
Pittsburgh, PA 15222-3779
92830F406
92830F505
92830F604
92830F703 Manufacturers and Traders Trust Company
92830F802 Investment Adviser
G00996-07 (6/99) A subsidiary of M&T Bank Corporation
Vision Capital Appreciation Fund
(A Portfolio of Vision Group of Funds, Inc.)
- -----------------------------------------------------------------------
Supplement to Combined Class A Shares Prospectus dated June 1, 1999
1. Effective June 1999, John J. Clark, III became the sole portfolio manager of
the VISION CAPITAL APPRECIATION FUND. Mr. Clark joined M&T Bank as Vice
President and Senior Portfolio Manager of M&T Capital Advisors Group in April
1998. Most of his 16-plus years of investment experience took place at
Cornell University where he was part of the in-house investment organization
where he helped to manage the University's endowment. Immediately prior to
joining M&T Bank, Mr. Clark was with Marine Midland Bank as a Senior
Portfolio Manager from 1994 to April 1998. Mr. Clark obtained his B.S. from
Cornell University and M.B.A. from Virginia Commonwealth University and is
also a Chartered Financial Analyst.
2. Please add the following as the fourth bullet point to the VISION EQUITY
INCOME FUND'S "Acceptable Investments" section on page 14 of the
prospectus:
"o domestic issues of corporate debt obligations (including convertible
bonds and debentures) rated, at the time of purchase, investment
grade by an NRSRO (e.g., Baa or higher by Moody's, or BBB or higher
by S&P or Fitch) or, if unrated, of comparable quality as determined
by the Adviser."
June 29, 1999
Federated Securities Corp.
Distributor
Federated Investors Tower
Pittsburgh, PA 15222-3779
Manufacturers and Traders Trust Company
92830F703 Investment Adviser
G00996-08 (6/99) A subsidiary of M&T Bank Corporation
