VISION FIDUCIARY FUNDS INC
485BPOS, 1994-06-27
Previous: PUTNAM MASTER INTERMEDIATE INCOME TRUST, DEF 14A, 1994-06-27
Next: COLONIAL INTERMEDIATE HIGH INCOME FUND, NSAR-A, 1994-06-27





                                   1933 Act File No. 33-20627
                                   1940 Act File No. 811-5513

              SECURITIES AND EXCHANGE COMMISSION
                    Washington, D.C. 20549

                           Form N-1A

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
X

   Pre-Effective Amendment No.

   Post-Effective Amendment No.   12                      X

                            and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940         X

   Amendment No.   10                                     X

                 VISION FIDUCIARY FUNDS, INC.

      (Exact Name of Registrant as Specified in Charter)

Federated Investors Tower, Pittsburgh, Pennsylvania 15222-3779
           (Address of Principal Executive Offices)

                        (412) 288-1900
                (Registrant's Telephone Number)

                   Joseph M. Huber, Esquire,
                  Federated Investors Tower,
              Pittsburgh, Pennsylvania 15222-3779
            (Name and Address of Agent for Service)

It is proposed that this filing will become effective:

    immediately upon filing pursuant to paragraph (b)
 X  on June 30, 1994, pursuant to paragraph (b)
    60 days after filing pursuant to paragraph (a)
    on                 pursuant to paragraph (a) of Rule 485.

Registrant has filed with the Securities and Exchange
Commission a declaration pursuant to Rule 24f-2 under the
Investment Company Act of 1940, and:

 X  filed the Notice required by that Rule on June 15, 1994;
or
    intends to file the Notice required by that Rule on or
   about ____________; or
    during the most recent fiscal year did not sell any
 securities pursuant to Rule 24f-2 under the Investment
 Company Act of 1940, and, pursuant to Rule 24f-2(b)(2), need
 not file the Notice.

                          Copies to:

Thomas J. Donnelly, Esquire     Charles H. Morin, Esquire
Houston, Houston & Donnelly     Dickstein, Shapiro & Morin,
L.L.P.
2510 Centre City Tower          2101 L Street, N.W.
650 Smithfield Street           Washington, D.C.  20037
Pittsburgh, Pennsylvania 15222


                     CROSS-REFERENCE SHEET


     This Amendment to the Registration Statement of VISION
FIDUCIARY FUNDS, INC., which is comprised of one portfolio, Vision
Fiduciary Money Market Fund, is comprised of the following:

PART A. INFORMATION REQUIRED IN A PROSPECTUS.

                                   Prospectus Heading
                                   (Rule 404(c) Cross Reference)

Item 1.   Cover Page               Cover Page
Item 2.   Synopsis                 Summary of Fund Expenses
Item 3.   Condensed Financial
            Information            Financial Highlights;
                                   Performance Information.
Item 4.   General Description of
            Registrant             General Information; Investment
                                   Information; Investment
                                   Objective; Investment Policies;
                                    Other Investment Techniques;
                                   Investment Limitations;
                                   Regulatory Compliance.

Item 5.   Management of the Fund   Fund Information; Management of
                                   the Fund; Distribution of Fund
                                   Shares; Administration of the
                                   Fund.
Item 6.   Capital Stock and Other
            Securities             Dividends; Capital Gains;
                                   Retirement Plans; Description
                                   of Fund Shares; Voting Rights;
                                   Tax Information; Federal Income
                                   Tax;  Maryland Corporation
                                   Information.

Item 7.   Purchase of Securities Being
            Offered                Net Asset Value; Investing in
                                   the Fund; Share Purchases;
                                   Minimum Investment Required;
                                   What Shares Cost; Customer
                                   Agreements; Certificates and
                                   Confirmations.

Item 8.   Redemption or Repurchase Redeeming Shares; Telephone
                                   Redemption; Written Requests;
                                   Involuntary Redemption.

Item 9.   Pending Legal Proceedings     None.
PART B. INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL
INFORMATION.

Item 10.  Cover Page               Cover Page.
Item 11.  Table of Contents        Table of Contents.
Item 12.  General Information and
            History(1-2)           General Information About the
                                   Fund.
Item 13.  Investment Objectives and
            Policies               Investment Objective and
                                   Policies; Investment
                                   Limitations.
Item 14.  Management of the Fund   Vision Fiduciary Funds, Inc.
                                   Management.
Item 15.  Control Persons and Principal
            Holders of Securities  Not applicable.
Item 16.  Investment Advisory and Other
            Services               Investment Advisory Services;
                                   Administrative Services.
Item 17.  Brokerage Allocation     Brokerage Transactions.
Item 18.  Capital Stock and Other
            Securities             Description of Fund Shares.
Item 19.  Purchase, Redemption and
          Pricing of Securities
          Being Offered            Purchasing Shares; Determining
                                   Net Asset Value; Redeeming
                                   Shares.
Item 20.  Tax Status               Tax Status.
Item 21.  Underwriters             Not applicable.
Item 22.  Calculation of Performance
            Data                   Performance Comparisons;
                                   Effective Yield; Appendix.
Item 23.  Financial Statements     Financial Statements(Filed in
                                   Part A).



   
VISION FIDUCIARY MONEY MARKET FUND
    

   
(A PORTFOLIO OF VISION FIDUCIARY FUNDS, INC.)
    
   
PROSPECTUS
    

Vision Fiduciary Money Market Fund (the "Fund") is a portfolio offered by Vision
Fiduciary Funds, Inc. (the "Company"), a no-load, diversified, open-end
management investment company (a mutual fund), investing in high-quality money
market instruments with remaining maturities of 397 days or less to seek current
income with liquidity and stability of principal.

AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT. THE FUND ATTEMPTS TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER
SHARE, HOWEVER, THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE TO DO SO.

The shares offered by this prospectus are not deposits or obligations of
Manufacturers and Traders Trust Company ("M & T Bank"), are not endorsed or
guaranteed by M & T Bank, and are not insured by the Federal Deposit Insurance
Corporation, the Federal Reserve Board, or any other government agency.

This Prospectus contains the information you should read and know before you
invest in the Fund. Keep this Prospectus for future reference.

Shares of the Fund ("shares") are sold by Federated Securities Corp. ("FSC")
only to M&T Bank and its affiliated banks, acting on behalf of certain customers
("Customer Accounts") for which they exercise substantial investment discretion.

   
The Fund has also filed a Statement of Additional Information dated June 30,
1994, with the Securities and Exchange Commission. The information contained in
the Statement of Additional Information is incorporated by reference into this
Prospectus. You may request a copy of the Statement of Additional Information
free of charge, obtain other information, or make inquiries about the Fund by
writing or calling the Fund.
    

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.

   
Prospectus dated June 30, 1994
    

TABLE OF CONTENTS
- --------------------------------------------------------------------------------

SUMMARY OF FUND EXPENSES                                                       1
- ------------------------------------------------------

   
FINANCIAL HIGHLIGHTS                                                           2
    
- ------------------------------------------------------

GENERAL INFORMATION                                                            3
- ------------------------------------------------------

INVESTMENT INFORMATION                                                         3
- ------------------------------------------------------

  Investment Objective                                                         3
  Investment Policies                                                          3
     Acceptable Investments                                                    3
     Foreign Investments                                                       3
     Repurchase Agreements                                                     4
     Variable Amount Demand Master Notes  4
     Asset-Backed Securities                                                   4
  Other Investment Techniques                                                  4
     Credit Enhancement                                                        4
     Demand Features                                                           4
  Investment Limitations                                                       4
  Regulatory Compliance                                                        5

FUND INFORMATION                                                               6
- ------------------------------------------------------

  Management of the Fund                                                       6
     Board of Directors                                                        6
     Investment Adviser                                                        6
     Advisory Fees                                                             6
     Adviser's Background                                                      6
     Glass-Steagall Act                                                        6
  Distribution of Fund Shares                                                  6
  Administration of the Fund                                                   6
     Administrative Services                                                   6
   
     Custodian                                                                 7
    
   
     Transfer Agent and Dividend
    
   
       Disbursing Agent                                                        7
    
     Legal Counsel                                                             7
     Independent Auditors                                                      7

NET ASSET VALUE                                                                7
- ------------------------------------------------------

INVESTING IN THE FUND                                                          7
- ------------------------------------------------------

  Share Purchases                                                              7
     By Wire                                                                   7
  Minimum Investment Required                                                  7
  What Shares Cost                                                             7
  Customer Agreements                                                          8
  Certificates and Confirmations                                               8
  Dividends                                                                    8
  Capital Gains                                                                8
  Retirement Plans                                                             8

REDEEMING SHARES                                                               8
- ------------------------------------------------------

  Telephone Redemption                                                         8
  Written Requests                                                             9
     Signatures                                                                9
     Receiving Payment                                                         9
   
  Involuntary Redemption                                                       9
    

DESCRIPTION OF FUND SHARES                                                     9
- ------------------------------------------------------

  Voting Rights                                                                9

TAX INFORMATION                                                               10
- ------------------------------------------------------

  Federal Income Tax                                                          10

MARYLAND CORPORATION INFORMATION                                              10
- ------------------------------------------------------

PERFORMANCE INFORMATION                                                       11
- ------------------------------------------------------

FINANCIAL STATEMENTS                                                          12
- ------------------------------------------------------

INDEPENDENT AUDITORS' REPORT                                                  19
- ------------------------------------------------------

   
ADDRESSES                                                      Inside Back Cover
    
- ------------------------------------------------------


   
SUMMARY OF THE FUND'S EXPENSES
    
- --------------------------------------------------------------------------------

   
<TABLE>
<S>                                                                             <C>      <C>
                               SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases (as a percentage of offering price)...........     None
Maximum Sales Load Imposed on Reinvested Dividends
  (as a percentage of offering price).................................................     None
Contingent Deferred Sales Charge (as a percentage of original purchase price or
  redemption proceeds, as applicable).................................................     None
Redemption Fees (as a percentage of amount redeemed, if applicable)...................     None
Exchange Fee..........................................................................     None
                                ANNUAL FUND OPERATING EXPENSES
                            (As a percentage of average net assets)
Management Fee........................................................................    0.00%
12b-1 Fees............................................................................     None
Other Expenses........................................................................    0.30%
          Total Fund Operating Expenses...............................................    0.30%
</TABLE>
    

     The Annual Fund Operating Expenses were 0.28% for the fiscal year ended
April 30, 1994. The Annual Fund Operating Expenses in the table above are based
on estimated expenses expected during the fiscal year ending April 30, 1995.

   
     The table above can help you understand the various costs and expenses that
a shareholder in the Fund will bear, either directly or indirectly. For more
complete descriptions of the various costs and expenses see the section "Fund
Information" on page 6. Wire-transferred redemptions of less than $5,000 may be
subject to additional fees.
    

<TABLE>
<CAPTION>
                    EXAMPLE                        1 year     3 years      5 years      10 years
- ------------------------------------------------   ------     --------     --------     ---------
<S>                                                <C>        <C>          <C>          <C>
You would pay the following expenses on a $1,000
  investment assuming (1) 5% annual return and
  (2) redemption at the end of each time period.
  As noted in the table above, the Fund charges
  no redemption fees............................     $3         $10          $17          $38
</TABLE>

     THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.


VISION FIDUCIARY MONEY MARKET FUND

FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
   
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
    

   
Reference is made to the Report of Ernst & Young, Independent Auditors on page
19.
    

   
<TABLE>
<CAPTION>
                                                             YEAR ENDED APRIL 30,
                                          ----------------------------------------------------------
                                           1994       1993      1992      1991      1990      1989*
                                          -------   --------   -------   -------   -------   -------
<S>                                       <C>        <C>       <C>       <C>       <C>       <C>
NET ASSET VALUE, BEGINNING OF PERIOD        $1.00      $1.00     $1.00     $1.00     $1.00     $1.00
- ----------------------------------------
INCOME FROM INVESTMENT OPERATIONS
- ----------------------------------------
  Net investment income                      0.03       0.03      0.05      0.07      0.08      0.07
- ----------------------------------------    -----      -----     -----     -----     -----     -----
LESS DISTRIBUTIONS
- ----------------------------------------
  Dividends to shareholders from net
  investment income                         (0.03)     (0.03)    (0.05)    (0.07)    (0.08)    (0.07)
- ----------------------------------------    -----      -----     -----     -----     -----     -----
NET ASSET VALUE, END OF PERIOD              $1.00      $1.00     $1.00     $1.00     $1.00     $1.00
- ----------------------------------------    -----      -----     -----     -----     -----     -----
TOTAL RETURN**                               3.02%      3.25%     5.22%     7.64%     8.85%     7.70%
- ----------------------------------------
RATIOS TO AVERAGE NET ASSETS
- ----------------------------------------
  Expenses                                   0.28%      0.32%     0.21%     0.41%     0.47%     0.56%(a)
- ----------------------------------------
  Net investment income                      2.97%      3.18%     5.14%     7.38%     8.45%     8.14%(a)
- ----------------------------------------
SUPPLEMENTAL DATA
- ----------------------------------------
  Net assets, end of period (000
  omitted)                                $86,586   $109,596   $58,760   $78,138   $87,682   $73,417
- ----------------------------------------
</TABLE>
    

   
  * Reflects operations for the period from June 1, 1988 (date of initial public
    offering) to April 30, 1989.
    

 ** Based on net asset value which does not reflect the sales load or contingent
    deferred sales charge, if applicable.

(a) Computed on an annualized basis.

(See Notes which are an integral part of the Financial Statements)


GENERAL INFORMATION
- --------------------------------------------------------------------------------

The Company was organized as a Maryland corporation on February 23, 1988, and
the Fund commenced operations on June 1, 1988. The Company's Articles of
Incorporation permit the Company to offer separate series of shares of capital
stock in separate portfolios of securities of which the Fund is such a
portfolio. This Prospectus relates only to the Fund. The Fund is designed as a
convenient means of accumulating an interest in a professionally managed,
diversified portfolio limited to money market instruments maturing in 397 days
or less.

The Fund attempts to stabilize the value of a share at $1.00. Fund shares are
currently sold and redeemed at that price.

INVESTMENT INFORMATION
- --------------------------------------------------------------------------------

   
INVESTMENT OBJECTIVE
    

The investment objective of the Fund is to seek current income with liquidity
and stability of principal by investing in high quality money market
instruments. The Fund pursues this investment objective by investing in a broad
range of government, bank and commercial obligations (money market instruments)
maturing in 397 days or less, although securities subject to repurchase
agreements may bear longer maturities. The average maturity of the money market
instruments in the Fund's portfolio, computed on a dollar-weighted basis, will
be 90 days or less. While there is no assurance that the Fund will achieve its
investment objective, it endeavors to do so by following the investment policies
described in this Prospectus. The investment objective and the policies and
limitations described below cannot be changed without approval of shareholders.

   
INVESTMENT POLICIES
    

ACCEPTABLE INVESTMENTS.  The Fund invests in high-quality money market
instruments which include, but are not limited to, the following:

     - commercial paper (short-term promissory notes issued by corporations)
       rated A-2 or better by Standard & Poor's Corporation, Prime-2 or better
       by Moody's Investors Service, Inc., money market instruments (including
       commercial paper) which are not rated but are determined by Manufacturers
       and Traders Trust Company ("M&T Bank"), the Fund's investment adviser, to
       be of comparable quality pursuant to guidelines approved by the Board of
       Directors, and variable amount demand master notes;

     - instruments of domestic banks and savings and loans (such as certificates
       of deposit, time deposits, and bankers' acceptances) if they have
       capital, surplus, and undivided profits of over $100,000,000 and if their
       deposits are insured by the Bank Insurance Fund ("BIF") or the Savings
       Association Insurance Fund ("SAIF"), both of which are administered by
       the Federal Deposit Insurance Corporation ("FDIC"). The Fund may also
       make interest-bearing savings deposits in commercial and savings banks
       not in excess of 5% of the Fund's total assets. In addition, the Fund may
       purchase bank obligations, including U.S. dollar-denominated instruments
       issued or supported by the credit of U.S. or foreign banks or savings
       institutions having total assets at the time of purchase in excess of $1
       billion;

     - obligations issued or guaranteed by the U.S. government, its agencies or
       instrumentalities, including certain of these obligations purchased on a
       when-issued or delayed delivery basis; and

     - repurchase agreements.

FOREIGN INVESTMENTS.  While the Fund will invest in an obligation of a foreign
bank or a foreign branch of a U.S. bank only if the investment adviser deems the
instrument to present minimal credit risks, such an investment may nevertheless
subject the Fund to risks that are different from those of investments in
domestic obligations of U.S. banks due to differences in political, regulatory,
and economic systems and conditions. Such risks include future adverse political
and economic developments, the possible imposition of withholding taxes on
interest income, the possible seizure or nationalization of foreign deposits,
the possible establishment of exchange controls or the adoption of other foreign
governmental restrictions which might adversely affect the payment of principal
and interest on such obligations. In addition, foreign branches of U.S. banks
and foreign banks may be subject to less stringent reserve requirements and to
different accounting, auditing, reporting and recordkeeping standards than those
applicable to domestic branches of U.S. banks. Investments by the


Fund in the obligations of foreign banks and foreign branches of U.S. banks will
be limited to less than 25% of the value of the Fund's total assets at the time
of purchase.

REPURCHASE AGREEMENTS.  Repurchase agreements are arrangements in which banks,
broker/dealers, and other recognized financial institutions sell U.S. government
securities or certificates of deposit to the Fund and agree at the time of sale
to repurchase them at a mutually agreed upon time and price within one year from
the date of acquisition. The Fund or its custodian will take possession of the
securities subject to repurchase agreements and these securities will be marked
to market daily. To the extent that the original seller does not repurchase the
securities from the Fund, the Fund could receive less than the repurchase price
on any sale of such securities. In the event that such a defaulting seller filed
for bankruptcy or became insolvent, disposition of such securities by the Fund
might be delayed pending court action. The Fund believes that under the regular
procedures normally in effect for custody of the Fund's portfolio securities
subject to repurchase agreements, a court of competent jurisdiction would rule
in favor of the Fund and allow retention or disposition of such securities. The
Fund will only enter into repurchase agreements with banks and other recognized
financial institutions approved by the Board of Directors.

VARIABLE AMOUNT DEMAND MASTER NOTES.  Variable amount demand master notes
represent a borrowing arrangement between a commercial paper issurer (borrower)
and an institutional lender such as the Fund (lender). These notes are payable
upon demand. The lender typically has the right to increase the amount under the
note at any time up to the full amount provided by the note agreement. Both the
lender and borrower have the right to reduce the amount of outstanding
indebtedness at any time. In some instances, however, the lender and borrower
may agree that the amount of outstanding indebtedness remain fixed. Variable
amount demand master notes provide that the interest rate on the amount
outstanding varies depending upon a stated short-term interest rate index.

ASSET-BACKED SECURITIES.  Asset-backed securities are securities issued by
special purpose entities whose primary assets consist of a pool of loans or
accounts receivable. The securities may take the form of beneficial interest in
a special purpose trust, limited partnership interests or commercial paper or
other debt securities issued by a special interest corporation. Although the
securities often have some form of credit or liquidity enhancement, payments on
the securities depend predominantly upon collections of the loans and
receivables held by the issuers.

OTHER INVESTMENT TECHNIQUES

CREDIT ENHANCEMENT.  Certain of the Fund's acceptable investments may have been
credit enhanced by a guaranty, letter of credit or insurance. The Fund typically
evaluates the credit quality and ratings of credit enhanced securities based
upon the financial condition and ratings of the party providing the credit
enhancement (the "credit enhancer"), rather than the issuer. Generally, the Fund
will not treat credit enhanced securities as having been issued by the credit
enhancer for diversification purposes. However, under certain circumstances
applicable regulations may require the Fund to treat the securities as having
been issued by both the issuer and the credit enhancer. The bankruptcy,
receivership or default of the credit enhancer will adversely affect the quality
and marketability of the underlying security.

DEMAND FEATURES.  The Fund may acquire securities that are subject to puts and
standby commitments ("demand features") to purchase the securities at their
principal amount (usually with accrued interest) within a fixed period (usually
seven days) following a demand by the Fund. The demand feature may be issued by
the issuer of the underlying securities, a dealer in the securities or by
another third party, and may not be transferred separately from the underlying
security. The Fund uses these arrangements to provide the Fund with liquidity
and not to protect against changes in the market value of the underlying
securities. The bankruptcy, receivership or default by the issuer of the demand
feature, or a default on the underlying security or other event that terminates
the demand feature before its exercise, will adversely affect the liquidity of
the underlying security. Demand features that are exercisable even after a
payment default on the underlying security may be treated as a form of credit
enhancement.

INVESTMENT LIMITATIONS

The Fund is subject to a number of investment restrictions that may be changed
only by a vote of a majority of outstanding shares of the Fund. Other investment
limitations that can be changed only with such a vote of shareholders are
contained in the Statement of Additional Information under "Investment Objective
and Policies."


The Fund may not:

     - borrow money or issue senior securities, except, that the Fund may borrow
       from banks or enter into reverse repurchase agreements for temporary
       purposes in amounts up to 10% of the value of its total assets at the
       time of such borrowing; or mortgage, pledge or hypothecate any assets,
       except in connection with any such borrowing and in amounts not in excess
       of the lesser of the dollar amounts borrowed or 10% of the value of the
       Fund's total assets at the time of its borrowing. The Fund will not
       purchase securities while its borrowings (including reverse repurchase
       agreements) are outstanding;

     - purchase any securities which would cause 25% or more of the value of the
       Fund's total assets at the time of purchase to be invested in the
       securities of one or more issuers conducting their principal business
       activities in the same industry, provided that (a) there is no limitation
       with respect to obligations issued or guaranteed by the U.S. government,
       its agencies or instrumentalities, domestic bank certificates of deposit,
       bankers' acceptances, and repurchase agreements secured by domestic bank
       instruments or obligations of the U.S. government, its agencies or
       instrumentalities; (b) wholly-owned finance companies will be considered
       to be in the industries of their parents if their activities are
       primarily related to financing the activities of their parents; and (c)
       utilities will be divided according to their services; for example, gas,
       gas transmission, electric and gas, electric, and telephone will each be
       considered a separate industry.

     - invest more than 5% of its total assets in securities of one issuer
       (other than obligations of the U.S. government, its agencies or
       instrumentalities), except that up to 25% of the value of the Fund's
       total assets may be invested without regard to this limitation; or

     - enter into repurchase agreements providing for settlement more than seven
       days after notice, if such investment, together with other illiquid
       securities in the Fund, exceed 10% of the Fund's total assets.

REGULATORY COMPLIANCE

The Fund is a money market fund. The Fund's investment policies, which are
fundamental and cannot be changed without vote of shareholders, were constructed
so as to comply with Rules promulgated by the Securities and Exchange Commission
("SEC") governing mutual funds' use of the amortized cost method of accounting
as were in effect at the time the Fund was created. (The section of the
Statement of Additional Information entitled "Determining Net Asset Value"
provides a more complete discussion of the amortized cost method of accounting.)
The SEC subsequently revised Rule 2a-7 under the Investment Company Act of 1940
which governs money market funds' use of the amortized cost method of
accounting. As a result of the revisions, the Fund will adhere to certain
nonfundamental operating policies in order to comply with revised Rule 2a-7.
Since the Fund may follow such operating policies without violating its
fundamental investment policies and limitations, the Fund does not presently
intend to ask for shareholder approval of changes to the Fund's investment
policies or limitations.

The Fund will invest in money market instruments (as described under "Acceptable
Investments" above) that are either rated in one of the two highest short-term
rating categories by one or more national recognized statistical rating
organizations ("NRSROs") or are of comparable quality to securities having such
rating. The two highest rating categories for NRSROs are determined without
regard to sub-categories and gradations. A description of the ratings categories
can be found in the Appendix to the Statement of Additional Information. The
Fund will limit its investments in securities rated in the second highest
short-term rating category, e.g., A-2 by Standard & Poor's Corporation, Prime-2
by Moody's Investors Service, Inc. or F-2 by Fitch Investors Service, Inc., to
not more than 5% of its total assets, with not more than 1% invested in the
securities of any one issuer. The Fund will follow applicable regulations in
determining whether a security rated by more than one NRSRO can be treated as
being in the highest short-term rating category.

In addition, with limited exceptions, the Fund will not invest more than 5% of
the Fund's total assets in the securities of any one issuer, although the Fund's
investment limitation requires such 5% diversification with respect to 75% of
its assets. The Fund will invest more than 5% of its assets in any one issuer
only under the circumstances permitted by Rule 2a-7. The Fund will also
determine the effective maturity of its investments, as well as its ability to
consider a security as having received the requisite short-term ratings by
NRSROs, according to Rule 2a-7. The Fund may change these operating policies to
reflect changes in the laws and regulations without the approval of its
shareholders, unless such changes are more permissive than the Fund's
fundamental policies.


FUND INFORMATION
- --------------------------------------------------------------------------------

MANAGEMENT OF THE FUND

BOARD OF DIRECTORS.  The Fund is managed by a Board of Directors. The Directors
are responsible for managing the Fund's business affairs and for exercising all
the Fund's powers except those reserved for the shareholders.

INVESTMENT ADVISER. Investment decisions for the Fund are made by M&T Bank, the
Fund's investment adviser, subject to direction by the Directors. The adviser
continually conducts investment research and supervision for the Fund and is
responsible for the purchase or sale of portfolio instruments

ADVISORY FEES.  Pursuant to its advisory agreement with M&T Bank, the Fund pays
no fee for the services of or expenses assumed by M&T Bank as investment
adviser. As investment adviser, M&T Bank manages the Fund's investment portfolio
and is responsible for all purchases and sales of the Fund's portfolio
securities. M&T Bank has agreed to pay all expenses incurred by it in connection
with its advisory activities, other than the cost of securities (including any
brokerage commissions) purchased for the Fund.

ADVISER'S BACKGROUND.  The current investment advisory contract between the Fund
and M&T Bank, previously approved by shareholders of the Fund, was executed on
April 25, 1988.

   
M&T Bank is the primary banking subsidiary of First Empire State Corporation, a
$10.4 billion bank holding company, as of December 31, 1993, headquartered in
Buffalo, New York. M&T Bank had $8.6 billion in assets, as of December 31, 1993,
and over 120 offices throughout New York State plus offices in New York City and
the Bahamas. First Empire State Corporation also owns The East New York Savings
Bank, which has 19 offices throughout metropolitan New York City as of December
31, 1993.
    

   
M&T Bank was founded in 1856 and provides comprehensive banking and financial
services to individuals, governmental entities and businesses throughout New
York State. The Fund's investments are managed through the Trust & Investment
Services Division of M&T Bank. As part of its regular banking operations, M&T
Bank may make loans to public companies. Thus, it may be possible, from time to
time, for the Fund to hold or acquire the securities of issuers which are also
lending clients of M&T Bank. The lending relationship will not be a factor in
the selection of securities.
    

GLASS-STEAGALL ACT.  The Glass-Steagall Act limits the ability of a depository
institution (such as a commercial bank or savings bank) to become an underwriter
or distributor of securities. The Glass-Steagall Act also limits the ability of
affiliates of a bank that is a member of the Federal Reserve System (such as M&T
Bank) to become an underwriter or distributor of securities.

Under current judicial and regulatory interpretations of the Glass-Steagall Act,
banks and their affiliates are allowed to act as investment advisers to mutual
funds and to act as agents for customers in the purchase or redemption of shares
of mutual funds. If the Glass-Steagall Act were amended or interpreted in the
future to prohibit depository institutions from acting in the capacities
described herein or to increase the allowable activities of banks and their
affiliates, the Directors will consider appropriate changes in the services,
which may affect the services of M&T Bank described herein.

DISTRIBUTION OF FUND SHARES

Federated Securities Corp. is the principal distributor for shares of the Fund.
Shares of the Fund are sold on a continuous basis by Federated Securities Corp.
It is a Pennsylvania corporation organized on November 14, 1969, and is the
principal distributor for a number of investment companies. Federated Securities
Corp. is a subsidiary of Federated Investors.

ADMINISTRATION OF THE FUND

ADMINISTRATIVE SERVICES.  Federated Administrative Services, a subsidiary of
Federated Investors, provides the Fund with certain administrative personnel and
services necessary to operate the Fund.


Such services include shareholder servicing and certain legal and accounting
services. Federated Administrative Services provides these services at an annual
rate as specified below.

<TABLE>
<CAPTION>
                                 AVERAGE AGGREGATE DAILY
 ADMINISTRATIVE FEE             NET ASSETS OF THE COMPANY
- ---------------------      ------------------------------------
<S>                        <C>
      .15% of 1%                on the first $250 million
     .125% of 1%                 on the next $250 million
      .10% of 1%                 on the next $250 million
     .075% of 1%           on assets in excess of $750 million
</TABLE>

The administrative fee received during any fiscal year shall be at least $50,000
per Fund. Federated Administrative Services may choose voluntarily to waive a
portion of its fee at any time.

   
CUSTODIAN.  State Street Bank and Trust Company, Boston, Massachusetts, is
custodian for the securities and cash of the Fund.
    

   
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT.  Federated Services Company,
Pittsburgh, Pennsylvania, a subsidiary of Federated Investors, is the transfer
agent for the shares of the Fund, and dividend disbursing agent responsible for
distributing dividends to the Fund's shareholders.
    

   
LEGAL COUNSEL.  Legal counsel is provided by Houston, Houston & Donnelly,
Pittsburgh, PA and Dickstein, Shapiro & Morin, L.L.P., Washington, D.C.
    

INDEPENDENT AUDITORS.  The independent auditors for the Fund are Ernst & Young,
Pittsburgh, PA.

NET ASSET VALUE
- --------------------------------------------------------------------------------

The Fund attempts to stabilize the net asset value of its shares at $1.00 by
valuing the portfolio securities using the amortized cost method. The net asset
value per share is determined by subtracting total liabilities from total assets
and dividing the remainder by the number of shares outstanding. Under this
method of valuation, the portfolio value of the assets normally will not change
in response to fluctuating interest rates. In connection with its use of this
valuation method, however, the Fund monitors the deviation between the amortized
cost value of its assets and their market value (which can be expected to vary
inversely with change in the prevailing interest rates). The Fund, of course,
cannot guarantee that its net asset value will always remain at $1.00 per share.

INVESTING IN THE FUND
- --------------------------------------------------------------------------------

SHARE PURCHASES

Fund shares are sold on all business days except on days which the New York
Stock Exchange is closed and federal holidays restricting wire transfers. Shares
may be purchased either by wire or mail.

   
To purchase shares of the Fund, contact the Trust Division of M&T Bank at
800-365-6332. Shares of both Portfolios are sold to customer accounts in which
M&T Bank's Trust Division or an affiliate exercises investment discretion. Texas
residents must purchase shares through Federated Securities Corp. at
1-800-618-8573.
    

BY WIRE.  To purchase shares of the Fund by Federal Reserve wire, call M&T
Bank's Trust Division before 11:00 a.m. (Buffalo time) to place an order. The
order is considered received immediately. Payment by federal funds must be
received before 3:00 p.m. (Buffalo time) that same day. Shares cannot be
purchased by Federal Reserve wire on Columbus Day, Veterans Day, or Martin
Luther King Day.

MINIMUM INVESTMENT REQUIRED

   
There is no minimum initial investment requirement in the Fund.
    

WHAT SHARES COST

Fund shares are sold at their net asset value next determined after an order is
received. There is no sales charge imposed by the Fund.

The Fund's net asset value is determined at 12:00 noon (Buffalo time), 3:00 p.m.
(Buffalo time), and 4:00 p.m. (Buffalo time), Monday through Friday, except on:
(i) days on which there are not sufficient changes in the value of the Fund's
portfolio securities that its net asset value might be materially affected; (ii)
days on which no shares are tendered for redemption and no orders to purchase
shares


are received; or (iii) the following holidays: New Year's Day, Martin Luther
King Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day, and Christmas Day.

CUSTOMER AGREEMENTS

Prospective purchasers of Fund shares will normally acquire shares through
different types of customer accounts at M&T Bank and its affiliates. This
Prospectus should, therefore, be read together with any agreement between the
customer and the institution with regard to the services provided, the fees
charged for those services, and any restrictions and limitations imposed.

CERTIFICATES AND CONFIRMATIONS

   
As transfer agent for the Fund, Federated Services Company maintains a share
account for each shareholder. Share certificates are not issued unless requested
by contacting the Fund in writing.
    

Monthly confirmations are sent to report transactions such as purchases and
redemptions as well as dividends paid during the month.

DIVIDENDS

Dividends are declared daily and paid monthly. Shares purchased by wire before
3:00 p.m. (Buffalo time) begin earning dividends that day. Shares purchased by
check begin earning dividends on the day after the check is converted into
federal funds.

CAPITAL GAINS

Capital gains, if any, could result in an increase in dividends. Capital losses
could result in a decrease in dividends. If for some extraordinary reason the
Fund realizes net long-term capital gains, it will distribute them at least once
every 12 months. The Fund does not foresee realizing any capital gains and,
therefore, does not foresee paying any "capital gains dividends" as described in
the Internal Revenue Code.

RETIREMENT PLANS

Individuals can purchase shares of the Fund as an investment for their
retirement plans or for their IRA accounts. For further details, including
prototype retirement plans, contact an M&T Bank account representative and
consult a tax adviser.

REDEEMING SHARES
- --------------------------------------------------------------------------------

Shares of the Fund may be redeemed by contacting the Trust Division of M&T Bank.
The Fund redeems shares at their net asset value per share next determined after
the Fund receives the redemption request. Redemptions will be made on days on
which the Fund computes its net asset value. Redemption requests cannot be
executed on days on which the New York Stock Exchange is closed or on federal
holidays restricting wire transfers. Redemption requests must be received in
proper form and can be made by telephone request or by written request with
respect to Fund shares.

TELEPHONE REDEMPTION

Provided no share certificates have been issued, a shareholder of record may
have the payment of redemption requests wired directly to M&T Bank or another
domestic commercial bank account previously designated by the shareholder.
Shareholders of record may redeem their shares by telephoning M&T Bank's Mutual
Fund Services at 800-365-6332 before 11:00 a.m. (Buffalo time). The proceeds
will be wired the same day to the shareholder's account at a domestic commercial
bank that is a member of the Federal Reserve System. The Fund reserves the right
to charge a fee for wire transfers to a commercial bank other than M&T Bank.

A daily dividend will be paid on shares redeemed if the redemption request is
received after 11:00 a.m. (Buffalo time). However, the proceeds are not wired
until the following business day. Redemption requests received before 11:00 a.m.
(Buffalo time) will be paid the same day but will not be entitled to that day's
dividend. If at any time, the Fund shall determine it necessary to terminate or
modify this method of redemption, shareholders will be promptly notified.

An authorization form permitting the Fund to accept telephone requests must
first be completed. Authorization forms and information on this service are
available from M&T Bank. Telephone redemption instructions may be recorded.
While shareholders may withdraw various amounts by telephone, check, or written
request, accounts may only be closed by written request.


In the event of drastic economic or market changes, a shareholder may experience
difficulty in redeeming by telephone. If such a case should occur, another
method of redemption should be considered, such as "Written Requests."

If reasonable procedures are not followed by the Fund, it may be liable for
losses due to unauthorized or fraudulent telephone instructions.

WRITTEN REQUESTS

Fund shares may also be redeemed by writing the Trust Division of M&T Bank.

   
SIGNATURES.  Shareholders requesting a redemption of $50,000 or more, a
redemption of any amount to be sent to an address other than that on record with
the Fund, a transfer of registration, or a redemption payable other than to the
shareholder of record must have signatures on written redemption requests
guaranteed by:
    

     - a trust company or commercial bank whose deposits are insured by the Bank
       Insurance Fund ("BIF"), which is administered by the Federal Deposit
       Insurance Corporation ("FDIC");

     - a member firm of the New York, American, Boston, Midwest, or Pacific
       Stock Exchanges;

     - a savings bank or savings and loan association whose deposits are insured
       by the Savings Association Insurance Fund ("SAIF"), which is administered
       by the FDIC; or

     - any other "eligible guarantor institution," as defined in the Securities
       Exchange Act of 1934.

The Fund does not accept signatures guaranteed by a notary public.

The Fund and its transfer agent have adopted standards for accepting signature
guarantees from the above institutions. The Fund may elect in the future to
limit eligible signature guarantors to institutions that are members of a
signature guarantee program. The Fund and its transfer agent reserve the right
to amend these standards at any time without notice.

   
RECEIVING PAYMENT.  Normally, a check for the proceeds is mailed within one
business day, but in no event more than seven days, after receipt of a proper
written redemption request, provided the Fund or its agent have received payment
from the shareholder.
    

INVOLUNTARY REDEMPTION

The Fund may redeem shares involuntarily or make payment for redemption in
securities if it otherwise appears appropriate to do so in light of the Fund's
responsibilities under the Investment Company Act of 1940.

DESCRIPTION OF FUND SHARES
- --------------------------------------------------------------------------------

   
The Company has authorized capital of 10 billion shares of Common Stock, $.001
par value per share, of which 2 billion shares have been classified into two
classes of 1 billion shares each. Shares of Class A Common Stock represent
interest in the Fund. Shares of Class B Common Stock represent interest in the
Company's Vision Fiduciary New York Tax-Free Money Market Fund (the "Tax-Free
Portfolio"). The Tax-Free Portfolio no longer has any assets or shares
outstanding.
    

   
Each Fund share represents an equal proportionate interest in the Fund with
other shares of the same class, and is entitled to such dividends and
distributions out of the income earned on the assets belonging to the Fund as
are declared in the discretion of the Company's Board of Directors. Shareholders
of the Fund are entitled to one vote for each full share held, and fractional
votes for fractional shares held, and will vote in the aggregate and not by
class except as otherwise expressly required by law or when the Board of
Directors determines that the matter to be voted upon effects only the interests
of the shareholders of a particular class. (See the Statement of Additional
Information under "Description of Fund Shares" for examples where the Investment
Company Act of 1940 requires voting by class.) Voting rights are not cumulative
and, accordingly, the holders of more than 50% of the aggregate number of shares
of the Fund may elect all of the Directors if they choose to do so and, in such
event, the holders of the remaining shares would not be able to elect any person
or persons to the Board of Directors.
    

VOTING RIGHTS

   
Each share of the Fund is entitled to one vote at all meetings of shareholders.
As of June 4, 1994, Tice & Co., Buffalo, New York, owned 100% of the voting
securities of the Fund, and, therefore, may, for certain purposes, be deemed to
control the Fund and be able to affect the outcome of certain matters presented
for a vote of shareholders.
    


Each share of the Fund gives the shareholder one vote in Director elections and
other matters submitted to shareholders for vote. As a Maryland corporation, the
Company is not required to hold annual shareholder meetings. Shareholder
approval will be sought only for certain changes in the Fund's operation and for
the election of Directors under certain circumstances.

Directors may be removed by the Directors or by shareholders at a special
meeting. A special meeting of the Fund shall be called by the Directors upon the
written request of shareholders owning at least 10% of the Fund's outstanding
shares.

TAX INFORMATION
- --------------------------------------------------------------------------------

FEDERAL INCOME TAX

The Fund will pay no federal income tax because it expects to meet requirements
of the Internal Revenue Code applicable to regulated investment companies and to
receive the special tax treatment afforded to such companies.

The Fund will be treated as a single, separate entity for federal income tax
purposes so that income (including capital gains) and losses realized by the
Company's other portfolio will not be combined for tax purposes with those
realized by the Fund.

Unless otherwise exempt, shareholders are required to pay federal income tax on
any dividends and other distributions, including capital gains distributions, if
any, received. This applies whether dividends and distributions are received in
cash or as additional shares.

No attempt has been made to present a detailed explanation of the federal,
state, and local income tax treatment of the Fund or its shareholders, and this
discussion is not intended as a substitute for careful tax planning.
Shareholders will be advised annually as to the federal income tax consequences
of distributions made during the year.

MARYLAND CORPORATION INFORMATION
- --------------------------------------------------------------------------------

As a result of an amendment to the Maryland General Corporation Law effective
July 1, 1987, the Fund is not required to hold annual meetings of shareholders
unless the Investment Company Act of 1940 requires action by the shareholders in
such year. Under such act, action by shareholders is required in order to make
changes in the Fund's investment advisory agreement, to replace the Fund's
independent certified public accountants and to elect members of the Board of
Directors under certain circumstances.

   
As used in this Prospectus, "assets belonging to the Fund" means the
consideration received by the Company upon the issuance or sale of shares in the
Fund, together with all income, earnings, profits and proceeds derived from the
investment thereof, including any proceeds from the sale, exchange or
liquidation of such investments, and any funds or payments derived from any
reinvestment of such proceeds, and a portion of any general assets of the
Company not belonging to the Fund or any other existing portfolio of the
Company. Assets belonging to the Fund are charged with the direct liabilities in
respect of the Fund and with a share of the general liabilities of the Company
allocated in proportion to the relative asset values of any other portfolio of
the Company at the time the expense or liability is incurred. The management of
the Company makes determinations with respect to the Fund as to the direct and
allocable liabilities at the time the expense or liability is incurred and as to
the allocable portion of any general assets at the time the asset is acquired.
Such determinations are reviewed and approved annually by the Company's Board of
Directors and are conclusive.
    


PERFORMANCE INFORMATION
- --------------------------------------------------------------------------------

From time to time the Fund advertises its yield and effective yield.

The yield of the Fund represents the annualized rate of income earned on an
investment in the Fund over a seven-day period. It is the annualized dividends
earned during the period on the investment, shown as a percentage of the
investment. The effective yield is calculated similarly to the yield, but, when
annualized, the income earned on an investment in the Fund is assumed to be
reinvested daily. The effective yield will be slightly higher than the yield
because of the compounding effect of this assumed reinvestment.

Advertisements and other sales literature may also refer to total return. Total
return represents the change, over a specified period of time, in the value of
an investment in the Fund after reinvesting all income distributions. It is
calculated by dividing that change by the initial investment and is expressed as
a percentage.

From time to time, the Fund may advertise its performance using certain
financial publications and/or compare its performance to certain indices.


   
VISION FIDUCIARY MONEY MARKET FUND
    

PORTFOLIO OF INVESTMENTS
APRIL 30, 1994
- --------------------------------------------------------------------------------

   
<TABLE>
<CAPTION>
PRINCIPAL
  AMOUNT                                                                                 VALUE
- ----------      -------------------------------------------------------------------   -----------
<C>        <C>  <S>                                                                   <C>
*CORPORATE OBLIGATIONS--78.4%
- -----------------------------------------------------------------------------------
                BANKING--15.0%
                -------------------------------------------------------------------
$4,000,000      BancOne Diversified Services, 3.68%, 5/25/94                          $ 3,990,187
                -------------------------------------------------------------------
 4,000,000   ** Huntington National Bank, 3.76%, 3/15/95                                4,000,000
                -------------------------------------------------------------------
 4,000,000   ** Society Bank, N.A., 3.76%, 3/16/95                                      4,000,000
                -------------------------------------------------------------------
 1,000,000      Wachovia Bank, N.A., 4.70%, 10/31/94                                    1,005,556
                -------------------------------------------------------------------   -----------
                Total                                                                  12,995,743
                -------------------------------------------------------------------   -----------
</TABLE>
    

   
<TABLE>
<C>        <C>  <S>                                                                   <C>
                DIVERSIFIED--4.0%
                -------------------------------------------------------------------
 3,500,000      General Electric Capital Corp., 3.77%, 5/9/94                           3,497,068
                -------------------------------------------------------------------   -----------
                ELECTRONICS--4.0%
                -------------------------------------------------------------------
 3,500,000      Hewlett Packard Co., 3.58%, 5/11/94                                     3,496,519
                -------------------------------------------------------------------   -----------
                FINANCE--RETAIL--17.0%
                -------------------------------------------------------------------
 3,800,000      American General Finance Corp., 3.65%, 5/6/94                           3,798,073
                -------------------------------------------------------------------
 3,900,000   ** Associates Corp. North America, 3.66%, 6/1/94                           3,900,000
                -------------------------------------------------------------------
 4,000,000   ** Beneficial Corp., 4.02%, 1/20/95                                        4,000,000
                -------------------------------------------------------------------
 3,000,000      Norwest Financial Inc., 7.95%, 6/15/94                                  3,015,465
                -------------------------------------------------------------------   -----------
                Total                                                                  14,713,538
                -------------------------------------------------------------------   -----------
                FINANCE--AUTOMOTIVE--0.4%
                -------------------------------------------------------------------
   336,896      Premier Auto Trust, 3.21%, 9/2/94                                         336,896
                -------------------------------------------------------------------   -----------
                FUNDING CORPORATION--4.6%
                -------------------------------------------------------------------
 4,000,000      CIESCO LP, 3.70%, 5/3/94                                                3,999,178
                -------------------------------------------------------------------   -----------
                LEASING--4.6%
                -------------------------------------------------------------------
 4,000,000      PHH Corp., 3.82%, 5/19/94                                               3,992,360
                -------------------------------------------------------------------   -----------
                OIL & OIL FINANCE--12.1%
                -------------------------------------------------------------------
 3,500,000      Texaco Inc., 3.54%, 5/3/94                                              3,499,312
                -------------------------------------------------------------------
 3,500,000      Amoco Credit Corp., 3.75%, 5/18/94                                      3,493,802
                -------------------------------------------------------------------
 3,500,000      Chevron Oil Finance Co., 3.77%, 5/16/94                                 3,494,502
                -------------------------------------------------------------------   -----------
                Total                                                                  10,487,616
                -------------------------------------------------------------------   -----------
                PHARMACEUTICALS & HEALTH CARE--4.6%
                -------------------------------------------------------------------
 4,000,000      Abbott Laboratories, 3.83%, 6/14/94                                     3,981,275
                -------------------------------------------------------------------   -----------
                TELECOMMUNICATIONS--3.5%
                -------------------------------------------------------------------
 3,000,000      Bell South Telecommunications, Inc., 3.75%, 5/9/94                      2,997,500
                -------------------------------------------------------------------   -----------
</TABLE>
    


   
VISION FIDUCIARY MONEY MARKET FUND
    
   
- --------------------------------------------------------------------------------
    

   
<TABLE>
<CAPTION>
PRINCIPAL
  AMOUNT                                                                                 VALUE
- ----------      -------------------------------------------------------------------   -----------
<C>        <C>  <S>                                                                   <C>
*CORPORATE OBLIGATIONS--CONTINUED
- -----------------------------------------------------------------------------------
                TOBACCO--4.0%
                -------------------------------------------------------------------
$3,500,000      BAT Capital Corp., 3.60%, 5/17/94                                     $ 3,494,400
                -------------------------------------------------------------------   -----------
</TABLE>
    

   
<TABLE>
<C>        <C>  <S>                                                                   <C>
                UTILITIES--4.6%
                -------------------------------------------------------------------
 4,000,000      Houston Lighting & Power Co., 3.75%, 5/2/94                             3,999,583
                -------------------------------------------------------------------   -----------
                TOTAL CORPORATE OBLIGATIONS                                            67,991,676
                -------------------------------------------------------------------   -----------
U.S. GOVERNMENT AGENCIES--3.5%
- -----------------------------------------------------------------------------------
 1,500,000      Federal Home Loan Bank, 2.88%, 6/23/94                                  1,500,000
                -------------------------------------------------------------------
 1,500,000   ** Student Loan Marketing Association, 4.12%, 5/14/96                      1,500,000
                -------------------------------------------------------------------   -----------
                TOTAL U.S. GOVERNMENT AGENCIES                                          3,000,000
                -------------------------------------------------------------------   -----------
U.S. TREASURY OBLIGATIONS--6.8%
- -----------------------------------------------------------------------------------
 6,000,000      U.S. Treasury Bills, 6/30/94--11/17/94                                  5,916,806
                -------------------------------------------------------------------   -----------
***REPURCHASE AGREEMENT--11.3%
- -----------------------------------------------------------------------------------
 9,762,000      Kidder, Peabody & Co, Inc., 3.55%, dated 4/29/94, due 5/2/94, (Note
                2B)                                                                     9,762,000
                -------------------------------------------------------------------   -----------
                TOTAL INVESTMENTS, AT AMORTIZED COST                                  $86,670,482+
                -------------------------------------------------------------------   -----------
</TABLE>
    

  * Each issue, with the exception of variable rate securities, shows the coupon
    or rate of discount at the time of purchase.

 ** Denotes variable rate securities which show current rate and next demand
    date.

*** The repurchase agreement is fully collateralized by U.S. government and/or
    agency obligations based on market prices at the date of the portfolio.

  + Also represents cost for federal tax purposes.

Note: The categories of investments are shown as a percentage of net assets
      ($86,586,328) at April 30, 1994.

(See Notes which are an integral part of the Financial Statements)


VISION FIDUCIARY MONEY MARKET FUND

STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1994
- --------------------------------------------------------------------------------

   
<TABLE>
<S>                                                                   <C>            <C>
ASSETS:
- -------------------------------------------------------------------
Investments in securities                                             $76,908,482
- -------------------------------------------------------------------
Investment in repurchase agreement (Note 2B)                            9,762,000
- -------------------------------------------------------------------   -----------
     Total Investments, at amortized cost and value (Note 2A)                        $86,670,482
- ---------------------------------------------------------------------------------
Cash                                                                                       1,193
- ---------------------------------------------------------------------------------
Interest receivable                                                                      183,005
- ---------------------------------------------------------------------------------    -----------
     Total assets                                                                     86,854,680
- ---------------------------------------------------------------------------------
LIABILITIES:
- ---------------------------------------------------------------------------------
Dividends payable                                                     $   227,753
- -------------------------------------------------------------------
Payable to transfer and dividend disbursing agent (Note 4)                  4,292
- -------------------------------------------------------------------
Accrued expenses                                                           36,307
- -------------------------------------------------------------------   -----------
     Total liabilities                                                                   268,352
- ---------------------------------------------------------------------------------    -----------
NET ASSETS for 86,586,328 shares of capital stock outstanding                        $86,586,328
- ---------------------------------------------------------------------------------    -----------
NET ASSET VALUE, Offering Price, and Redemption Price Per Share:
($86,586,328 / 86,586,328 shares of capital stock outstanding)                             $1.00
- ---------------------------------------------------------------------------------    -----------
</TABLE>
    

(See Notes which are an integral part of the Financial Statements)


VISION FIDUCIARY MONEY MARKET FUND
STATEMENT OF OPERATIONS
YEAR ENDED APRIL 30, 1994
- --------------------------------------------------------------------------------

   
<TABLE>
<S>                                                             <C>        <C>         <C>
INVESTMENT INCOME:
- -----------------------------------------------------------------------------------
Interest income (Note 2C)                                                              $2,992,224
- -----------------------------------------------------------------------------------
EXPENSES:
- -----------------------------------------------------------------------------------
Administrative personnel and services fees (Note 4)                        $138,220
- -----------------------------------------------------------------------
Directors' fees                                                               8,578
- -----------------------------------------------------------------------
Custodian and recordkeeping fees and expenses                                55,327
- -----------------------------------------------------------------------
Transfer and dividend disbursing agent fees and expenses (Note 4)            19,773
- -----------------------------------------------------------------------
Insurance premiums                                                            5,678
- -----------------------------------------------------------------------
Printing and postage                                                          3,799
- -----------------------------------------------------------------------
Auditing fees                                                                13,168
- -----------------------------------------------------------------------
Legal fees                                                                    5,828
- -----------------------------------------------------------------------
Taxes                                                                         5,010
- -----------------------------------------------------------------------
Miscellaneous                                                                 2,707
- -----------------------------------------------------------------------    --------
     Total expenses                                                                       258,088
- -----------------------------------------------------------------------------------    ----------
          Net Investment Income                                                        $2,734,136
- -----------------------------------------------------------------------------------    ----------
</TABLE>
    

(See Notes which are an integral part of the Financial Statements)


VISION FIDUCIARY MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------

   
<TABLE>
<CAPTION>
                                                                     YEAR ENDED APRIL 30,
                                                                -------------------------------
                                                                    1994              1993
                                                                -------------     -------------
<S>                                                             <C>               <C>
INCREASE (DECREASE) IN NET ASSETS:
- --------------------------------------------------------------
OPERATIONS--
- --------------------------------------------------------------
Net investment income                                           $  2,734,136     $  2,536,765
- --------------------------------------------------------------  ------------     ------------
DISTRIBUTIONS TO SHAREHOLDERS (NOTE 2C)--
- --------------------------------------------------------------
Dividends to shareholders from net investment income              (2,734,136)      (2,536,765)
- --------------------------------------------------------------  ------------     ------------
CAPITAL STOCK TRANSACTIONS (NOTE 3)--
- --------------------------------------------------------------
Net proceeds from sale of shares                                 217,374,132      237,793,445
- --------------------------------------------------------------
Cost of shares redeemed                                         (240,383,985)    (186,957,563)
- --------------------------------------------------------------  ------------     ------------
     Change in net assets resulting from capital stock
       transactions                                              (23,009,853)      50,835,882
- --------------------------------------------------------------  ------------     ------------
          Change in net assets                                   (23,009,853)      50,835,882
- --------------------------------------------------------------
NET ASSETS:
- --------------------------------------------------------------
Beginning of period                                              109,596,181       58,760,299
- --------------------------------------------------------------  ------------     ------------
End of period                                                   $ 86,586,328     $109,596,181
- --------------------------------------------------------------  ------------     ------------
</TABLE>
    

   
(See Notes which are an integral part of the Financial Statements)
    


   
VISION FIDUCIARY MONEY MARKET FUND
    

NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1994
- --------------------------------------------------------------------------------

(1) ORGANIZATION

   
Vision Fiduciary Funds, Inc. (the "Company") is registered under the Investment
Company Act of 1940, as amended, as an open-end, management investment company.
The Company consists of one diversified portfolio, Vision Fiduciary Money Market
Fund (the "Fund").
    

   
(2) SIGNIFICANT ACCOUNTING POLICIES
    

   
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles (GAAP).
    

   
<TABLE>
<S>  <C>
A.   INVESTMENT VALUATIONS--The Fund's use of the amortized cost method to value their
     portfolio securities is in accordance with Rule 2a-7 under the Investment Company Act of
     1940.
B.   REPURCHASE AGREEMENTS--It is the policy of the Fund to require the custodian bank to take
     possession, to have legally segregated in the Federal Reserve Book Entry System or to
     have segregated within the custodian bank's vault, all securities held as collateral in
     support of repurchase agreement investments. Additionally, procedures have been
     established by the Fund to monitor on a daily basis, the market value of each repurchase
     agreement's underlying collateral to ensure the value at least equals the principal
     amount of the repurchase agreement, including accrued interest.
     The Fund will only enter into repurchase agreements with banks and other recognized
     financial institutions such as broker/dealers which are deemed by the Fund's adviser to
     be creditworthy pursuant to guidelines established by the Board of Directors
     ("Directors"). Risks may arise from the potential inability of counterparties to honor
     the terms of the repurchase agreement. Accordingly, the Fund could receive less than the
     repurchase price on the sale of collateral securities.
C.   INVESTMENT INCOME, EXPENSES AND DISTRIBUTIONS--Interest income and expenses are accrued
     daily. Bond premium and discount are amortized as required by the Internal Revenue Code,
     as amended ("Code"). Distributions to shareholders are recorded on the ex-dividend date.
D.   FEDERAL TAXES--It is the Fund's policy to comply with the provisions of the Code
     applicable to regulated investment companies and to distribute to shareholders each year
     substantially all of its taxable income. Accordingly, no provisions for federal tax are
     necessary.
E.   WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS--The Fund may engage in when-issued or
     delayed delivery transactions. The Fund records when-issued securities on the trade date
     and maintains security positions such that sufficient liquid assets will be available to
     make payment for the securities purchased. Securities purchased on a when-issued or
     delayed delivery basis are marked to market daily and begin earning interest on the
     settlement date.
F.   OTHER--Investment transactions are accounted for on the trade date.
</TABLE>
    

   
    

   
VISION FIDUCIARY MONEY MARKET FUND
    
- --------------------------------------------------------------------------------

   
(3) CAPITAL STOCK
    

   
At April 30, 1994, there were 1,000,000,000 shares of $0.001 par value capital
stock authorized. Capital paid-in aggregated $86,499,742, par value was $86,586.
Transactions in capital stock were as follows:
    

   
<TABLE>
<CAPTION>
                                                                      YEAR ENDED APRIL 30,
                                                                  ----------------------------
                                                                      1994            1993
- ----------------------------------------------------------------  ------------    ------------
<S>                                                               <C>             <C>
Shares sold                                                        217,374,132     237,793,445
- ----------------------------------------------------------------
Shares issued to shareholders in payment of dividends declared         --              --
- ----------------------------------------------------------------
Shares redeemed                                                   (240,383,985)   (186,957,563)
- ----------------------------------------------------------------  ------------    ------------
Net change resulting from capital stock transactions               (23,009,853)     50,835,882
- ----------------------------------------------------------------  ------------    ------------
</TABLE>
    

   
(4) INVESTMENT ADVISORY FEE AND OTHER TRANSACTIONS WITH AFFILIATES
    

INVESTMENT ADVISORY FEE--Investment advisory services are provided to the Fund
by M&T Bank, the Fund's investment adviser ("Adviser"), pursuant to an
investment advisory agreement dated April 25, 1988. Under the terms of such
agreement, the Fund pays no fee for the services provided by the Adviser.

ADMINISTRATIVE FEE--Federated Administrative Services ("FAS") provides the Fund
with certain administrative personnel and services. The fee is based on the
level of average aggregate net assets of the Company for the period. FAS may
voluntarily choose to waive a portion of its fee.

TRANSFER AND DIVIDEND DISBURSING AGENT FEES--Federated Services Company
("FServ") serves as transfer and dividend disbursing agent for the Fund. The fee
is based on the size, type and number of accounts and transactions made by
shareholders.

Certain of the Officers and Directors of the Company are Officers and Directors
or Trustees of the above companies.


VISION FIDUCIARY MONEY MARKET FUND

REPORT OF ERNST & YOUNG, INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------

To the Board of Directors and Shareholders of

VISION FIDUCIARY MONEY MARKET FUND:

   
We have audited the accompanying statement of assets and liabilities of Vision
Fiduciary Money Market Fund, a portfolio of Vision Fiduciary Funds, Inc.,
including the portfolio of investments, as of April 30, 1994, and the related
statement of operations for the year then ended, the statement of changes in net
assets for each of the two years in the period then ended, and the financial
highlights for each of the six years in the period then ended. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
    

   
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of April
30, 1994, by correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
    

   
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Vision
Fiduciary Money Market Fund of Vision Fiduciary Funds, Inc. at April 30, 1994,
and the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and the financial
highlights for each of the six years in the period then ended, in conformity
with generally accepted accounting principles
    

                                                                   ERNST & YOUNG

Pittsburgh, Pennsylvania
   
June 3, 1994
    


   
ADDRESSES
    
- --------------------------------------------------------------------------------

   
<TABLE>
<S>             <C>                                          <C>
                Vision Fiduciary Money Market Fund           P.O. Box 4556
                                                             Buffalo, New York 14240-4556
- ------------------------------------------------------------------------------------------------
Distributor
                Federated Securities Corp.                   Federated Investors Tower
                                                             Pittsburgh, Pennsylvania 15222-3779
- ------------------------------------------------------------------------------------------------
Investment Adviser
                Manufacturers and Traders                    One M&T Plaza
                Trust Company                                Buffalo, New York 14240
- ------------------------------------------------------------------------------------------------
Custodian
                State Street Bank and                        P.O. Box 8609
                Trust Company                                Boston, Massachusetts 02266-8609
- ------------------------------------------------------------------------------------------------
Transfer Agent and Dividend Disbursing Agent
                Federated Services Company                   Federated Investors Tower
                                                             Pittsburgh, Pennsylvania 15222-3779
- ------------------------------------------------------------------------------------------------
Legal Counsel
                Houston, Houston & Donnelly                  2510 Centre City Tower
                                                             Pittsburgh, Pennsylvania 15222
- ------------------------------------------------------------------------------------------------
Legal Counsel
                Dickstein, Shapiro & Morin, L.L.P.           2101 L Street, N.W.
                                                             Washington, D.C. 20037
- ------------------------------------------------------------------------------------------------
Independent Auditors
                Ernst & Young                                One Oxford Centre
                                                             Pittsburgh, Pennsylvania 15219
- ------------------------------------------------------------------------------------------------
</TABLE>
    

   
                                      VISION FIDUCIARY
                                      MONEY MARKET FUND
    
   
                                      PROSPECTUS
    

   
                                      (A Portfolio of Vision Fiduciary Funds,
                                      Inc.)
    

   
                                      June 30, 1994
    

   
      FEDERATED SECURITIES CORP.
    
   
                                      MANUFACTURERS AND TRADERS
    

   
(LOGO)
    
- ---------------------------------------------
   
                                      TRUST COMPANY
    
   
      Distributor
    
                                      ------------------------------------------
   
      A subsidiary of FEDERATED INVESTORS
    
   
                                      Investment Adviser
    
   
                                      A subsidiary of First Empire State
                                      Corporation
    
   
      FEDERATED INVESTORS TOWER
    

   
      PITTSBURGH, PA 15222-3779
    
      0072401A (6/94)




                       VISION FIDUCIARY MONEY MARKET FUND


                 (A PORTFOLIO OF VISION FIDUCIARY FUNDS, INC.)

                      STATEMENT OF ADDITIONAL INFORMATION

   
This Statement of Additional Information should be read with the Prospectus of
the Vision Fiduciary Money Market Fund dated June 30, 1994 into which this
Statement is incorporated by reference. This Statement is not a Prospectus
itself. To receive a copy of the Prospectus, write or call the Vision Fiduciary
Money Market Fund.
    

P.O. BOX 4556
BUFFALO, NEW YORK 14240-4556

   
                         Statement dated June 30, 1994
    

MANUFACTURERS AND TRADERS
TRUST COMPANY
- ----------------------------------------------------
Investment Adviser
A subsidiary of First Empire State Corporation


Federated Securities Corp. is distributor of the fund.


TABLE OF CONTENTS
- --------------------------------------------------------------------------------

GENERAL INFORMATION ABOUT THE FUND                                             1
- ---------------------------------------------------------------

INVESTMENT OBJECTIVE AND POLICIES                                              1
- ---------------------------------------------------------------

  Types of Investments                                                         1

  U.S. Government Obligations                                                  1


  When-Issued and Delayed Delivery
     Transactions                                                              1


  Reverse Repurchase Agreements                                                1


  Asset-Backed Securities                                                      2


  Investment Limitations                                                       2



VISION FIDUCIARY FUNDS, INC. MANAGEMENT                                        4

- ---------------------------------------------------------------


  Officers and Directors                                                       4


  Fund Ownership                                                               4


  Director Liability                                                           4



INVESTMENT ADVISORY SERVICES                                                   5

- ---------------------------------------------------------------


  Adviser to the Fund                                                          5


  Advisory Fees                                                                5



ADMINISTRATIVE SERVICES                                                        5


- ---------------------------------------------------------------


   
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT                                   5
    
- ---------------------------------------------------------------


BROKERAGE TRANSACTIONS                                                         6

- ---------------------------------------------------------------


DESCRIPTION OF FUND SHARES                                                     6

- ---------------------------------------------------------------


PURCHASING SHARES                                                              7

- ---------------------------------------------------------------


  Conversion to Federal Funds                                                  7


  Cash Sweep Program                                                           7



DETERMINING NET ASSET VALUE                                                    8


- ---------------------------------------------------------------


  Use of the Amortized Cost Method                                             8



REDEEMING SHARES                                                               8

- ---------------------------------------------------------------


TAX STATUS                                                                     9

- ---------------------------------------------------------------


  The Fund's Tax Status                                                        9


  Shareholders' Tax Status                                                     9



YIELD                                                                          9

- ---------------------------------------------------------------


EFFECTIVE YIELD                                                                9

- ---------------------------------------------------------------


PERFORMANCE COMPARISONS                                                        9

- ---------------------------------------------------------------


APPENDIX                                                                      11

- ---------------------------------------------------------------



GENERAL INFORMATION ABOUT THE FUND

- --------------------------------------------------------------------------------

Vision Fiduciary Money Market Fund (the "Fund") is a portfolio of Vision
Fiduciary Funds, Inc. (the "Company"). The Company was established as a Maryland
Corporation under Articles of Incorporation dated February 23, 1988.

INVESTMENT OBJECTIVE AND POLICIES
- --------------------------------------------------------------------------------

The Fund's investment objective is to seek current income with liquidity and
stability of principal by investing in high-quality money market instruments.

TYPES OF INVESTMENTS

The Fund invests in money market instruments which mature in 397 days or less
and which include, but are not limited to, commercial paper and variable amount
demand master notes, bank instruments, U.S. government obligations, and
repurchase agreements.

The instruments of banks and savings and loans that are members of the Federal
Deposit Insurance Corporation such as certificates of deposit, demand and time
deposits, savings shares, and bankers' acceptances, are not necessarily
guaranteed by those organizations.

U.S. GOVERNMENT OBLIGATIONS

The types of U.S. government obligations in which the Fund may invest generally
include direct obligations of the U.S. Treasury (such as U.S. Treasury bills,
notes, and bonds) and obligations issued or guaranteed by U.S. government
agencies or instrumentalities. These securities are backed by:

- - the full faith and credit of the U.S. Treasury;

- - the issuer's right to borrow from the U.S. Treasury;

- - the discretionary authority of the U.S. government to purchase certain
  obligations of agencies or instrumentalities; or

- - the credit of the agency or instrumentality issuing the obligations.

Examples of agencies and instrumentalities which may not always receive
financial support from the U.S. government are:

- - Federal Farm Credit Banks;

- - Federal Home Loan Banks;

- - Federal National Mortgage Association;

- - Student Loan Market Association; and

- - Federal Home Loan Mortgage Corporation.

WHEN ISSUED AND DELAYED DELIVERY TRANSACTIONS

The Fund may purchase short-term U.S. government obligations on a when-issued or
delayed delivery basis. These transactions are arrangements in which the Fund
purchases securities with payment and delivery scheduled for a future time.
Settlement dates may be a month or more after entering into these transactions,
and the market values of the securities purchased may vary from the purchase
prices.

These transactions are made to secure what is considered to be an advantageous
price and yield for the Fund. The Fund engages in when-issued and delayed
delivery transactions only for the purpose of acquiring portfolio securities
consistent with the Fund's investment objective and policies, not for investment
leverage.

No fees or other expenses, other than normal transaction costs, are incurred.
However, liquid assets of the Fund sufficient to make payment for the securities
to be purchased are segregated on the Fund's records at the trade date. These
securities are marked to market daily and maintained until the transaction is
settled.

   
In when-issued and delayed delivery transactions, the Fund relies on the seller
to complete the transactions. The seller's failure to complete the transaction
may cause the Fund to miss a price or yield considered to be advantageous. The
Fund may engage in these transactions to an extent that would cause the
segregation of an amount up to 20% of the total value of its assets.
    

REVERSE REPURCHASE AGREEMENTS

The Fund may also enter into reverse repurchase agreements. This transaction is
similar to borrowing cash. In a reverse repurchase agreement the Fund transfers
possession of a portfolio instrument to another person, such as a financial
institution, broker, or dealer, in return for a percentage of the instrument's
market value in cash, and agrees that on a stipulated date in the future the
Fund will repurchase the portfolio instrument by remitting the original
consideration plus interest at an agreed upon rate. The use of reverse
repurchase agreements may enable the Fund to avoid selling portfolio instruments
at a time when a sale may be deemed to be disadvantageous, but the ability to


- --------------------------------------------------------------------------------

enter into reverse repurchase agreements does not ensure that the Fund will be
able to avoid selling portfolio instruments at a disadvantageous time.

When effecting reverse repurchase agreements, liquid assets of the Fund, in a
dollar amount sufficient to make payment for the obligations to be purchased,
are segregated on the Fund's records at the trade date. These securities are
marked to market daily and maintained until the transaction is settled.

The above investment objective and policies cannot be changed without approval
of a majority of the outstanding shares of the Fund.

ASSET-BACKED SECURITIES

The Fund may invest in asset-backed securities including, but not limited to,
interests in pools of receivables, such as motor vehicle installment purchase
obligations and credit card receivables. These securities may be in the form of
pass-through instruments or asset backed bonds. The securities are issued by
non-governmental entities and carry no direct or indirect government guarantee.

Asset-backed securities generally pay back principal and interest over the life
of the security. At the time the Fund reinvests the payments and any unscheduled
prepayments of principal received, the Fund may receive a rate of interest which
is actually lower than the rate of interest paid on these securities
("prepayment risks"). Asset-backed securities are subject to higher prepayment
risks than most other types of debt instruments with prepayment risks because
the underlying loans or the collateral supporting asset-backed securities may be
prepaid without penalty or premium. Prepayment risks on asset-backed securities
tend to increase during periods of declining interest rates because many
borrowers refinance their obligations to take advantage of the more favorable
rates. Prepayments on asset-backed securities are also affected by other
factors, such as the frequency with which people elect to make unscheduled
payments on their obligations.

Credit card receivables are generally unsecured and the debtors are entitled to
the protection of a number of state and federal consumer credit laws, many of
which give such debtors the right to set off certain amounts owed on the credit
cards, thereby reducing the balance due. Most issuers of asset-backed securities
backed by motor vehicle installment purchase obligations permit the servicer of
such receivables to retain possession of the underlying obligations. If the
servicer sells these obligations to another party, there is a risk that the
purchaser would acquire an interest superior to that of the holders of the
related asset-backed securities. Further, if a vehicle is registered in one
state and is then reregistered because the owner and obligor moves to another
state, such reregistration could defeat the original security interest in the
vehicle in certain cases. In addition, because of the large number of vehicles
involved in a typical issuance and technical requirements under state laws, the
trustee for the holders of asset-backed securities backed by automobile
receivables may not have a proper security interest in all of the obligations
backing such receivables. Therefore, there is the possibility that recoveries on
repossessed collateral may not, in some cases, be available to support payments
on the securities.

INVESTMENT LIMITATIONS

The Fund will not change any of the investment limitations described below
without approval of a majority of the outstanding shares of the Fund.


    SELLING SHORT AND BUYING ON MARGIN

       The Fund will not sell any securities short or purchase any securities on
       margin, or participate on a joint or joint and several basis in any
       securities trading account.

    BORROWING MONEY

       The Fund may borrow funds for temporary purposes by entering into reverse
       repurchase agreements in accordance with the terms described in the
       Prospectus. The Fund does not anticipate entering into reverse repurchase
       agreements in excess of 5% of its net assets.

    PLEDGING SECURITIES

       The Fund will not mortgage, pledge, or hypothecate any assets, except in
       connection with any such borrowing and in amounts not in excess of the
       lesser of the dollar amounts borrowed or 10% of the value of the Fund's
       total assets at the time of its borrowing. The Fund will not purchase
       securities while its borrowings including reverse repurchase agreements
       are outstanding.

    INVESTING IN COMMODITIES, COMMODITY CONTACTS, OR REAL ESTATE

       The Fund will not invest in commodities, commodity contracts (including
       futures contracts), real estate, oil, gas or mineral exploration or
       development programs, except that it may purchase marketable securities
       of companies that engage in such activities.


- --------------------------------------------------------------------------------

    UNDERWRITING

       The Fund will not underwrite securities.

    LENDING CASH OR SECURITIES

       The Fund will not make loans, except that it may purchase or hold debt
       instruments, including repurchase agreements in accordance with its
       investment objective and policies.

    INVESTING IN SECURITIES OF OTHER INVESTMENT COMPANIES

       The Fund will not invest in securities issued by any other investment
       company, except as part of a merger, consolidation, reorganization, or
       acquisition of assets.

    DIVERSIFICATION OF INVESTMENTS

       The Fund will not purchase securities issued by any one issuer (other
       than cash, cash items, or securities issued or guaranteed by the U.S.
       government, its agencies, or instrumentalities and repurchase agreements
       collateralized by such securities) if as a result more than 5% of the
       value of its total assets would be invested in the securities of that
       issuer, except that up to 25% of the value of the Fund's total assets may
       be invested without regard to this limitation.

    CONCENTRATION OF INVESTMENTS

       The Fund will not invest more than 25% of the value of its total assets
       in any one industry. Utilities, however, will be divided according to
       their services; for example, gas, gas transmission, electric and gas,
       electric, and telephone will each be considered a separate industry.

       In addition, the Fund may invest more than 25% of the value of its total
       assets in cash or cash items (including instruments issued by a U.S.
       branch of a domestic bank or savings and loan association and bankers'
       acceptances), securities issued or guaranteed by the U.S. government, its
       agencies, or instrumentalities, or instruments secured by these money
       market instruments, such as repurchase agreements.

    ISSUING SENIOR SECURITIES

       The Fund will not issue senior securities.

    INVESTING IN RESTRICTED SECURITIES

       The Fund will not invest in securities subject to legal or contractual
       restrictions.

    INVESTING IN ISSUERS WHOSE SECURITIES ARE OWNED BY OFFICERS AND DIRECTORS OF
    THE FUND

       The Fund will not purchase or retain the securities of any issuer if the
       officers or Directors of the Company or its investment adviser owning
       beneficially more than 1/2 of 1% of the issuer's securities together own
       beneficially more than 5% of such securities.

    DEALING IN PUTS AND CALLS

       The Fund will not write or purchase put or call options.

    INVESTING IN NEW ISSUERS

       The Fund will not invest more than 10% of the value of its total assets
       in securities of issuers which have records of less than three years of
       continuous operations, including the operation of any predecessor.

    VOTING SECURITIES AND REVENUE BONDS

       The Fund will not buy common stock or voting securities of state,
       municipal or industrial revenue bond issuers.

    PURCHASING SECURITIES TO EXERCISE CONTROL

       The Fund will not invest in any issuer for purposes of exercising control
       or management.

Except with respect to borrowing money, if a percentage limitation is adhered to
at the time of investment, a later increase or decrease in percentage resulting
from any change in value or net assets will not result in a violation of such
restriction.

   
The Fund did not borrow money in excess of 5% of the value of its net assets
during the last fiscal year and has no present intent to do so in the coming
fiscal year.
    


VISION FIDUCIARY FUNDS, INC. MANAGEMENT
- --------------------------------------------------------------------------------

OFFICERS AND DIRECTORS

   
Officers and Directors are listed with their addresses, principal occupations
and present positions, including any affiliation with Manufacturers and Traders
Trust Company, Federated Investors, Federated Securities Corp., Federated
Services Company and Federated Administrative Services.
    

   
<TABLE>
<CAPTION>
                                          POSITIONS WITH        PRINCIPAL OCCUPATIONS
       NAME AND ADDRESS                   THE COMPANY           DURING PAST FIVE YEARS
<S>    <C>                                <C>                   <C>
- ---------------------------------------------------------------------------------------------------------------
       Randall I. Benderson               Director              Senior Vice President and Chief Operating
       570 Delaware Avenue                                      Officer, Benderson Development Company, Inc.
       Buffalo, NY
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
    

   
<TABLE>
<S>    <C>                                <C>                   <C>
       Joseph J. Castiglia                Director              President and Chief Executive Officer, Pratt &
       75 Tonawanda Avenue                                      Lambert, Inc.
       Buffalo, NY
- ---------------------------------------------------------------------------------------------------------------
       Daniel R. Gernatt, Jr.             Director              President and CFO of Gernatt Asphalt Products,
       Richardson & Taylor Hollow Roads                         Inc.; Executive Vice President, Dan Gernatt
       Collins, NY                                              Gravel Products, Inc.; Vice President,
                                                                Countryside Sand & Gravel, Inc.
- ---------------------------------------------------------------------------------------------------------------
       George K. Hambleton, Jr.           Director              President, Brand Name Sales, Inc.; President,
       670 Young Street                                         Hambleton & Carr, Inc.
       Tonawanda, NY
- ---------------------------------------------------------------------------------------------------------------
       Edward C. Gonzales                 President and         Vice President, Treasurer, and Trustee,
       Federated Investors Tower          Treasurer             Federated Investors; Vice President and
       Pittsburgh, PA                                           Treasurer, Federated Advisers, Federated
                                                                Management, and Federated Research; Executive
                                                                Vice President, Treasurer, and Director,
                                                                Federated Securities Corp.; Trustee, Federated
                                                                Services Company; Chairman, Treasurer, and
                                                                Director, Federated Administrative Services;
                                                                Vice President and Treasurer of certain
                                                                investment companies organized or advised by
                                                                Federated Investors or its affiliates
                                                                ("Federated Funds"); Trustee or Director of
                                                                some of the Federated Funds.
- ---------------------------------------------------------------------------------------------------------------
       Charles L. Davis, Jr.              Vice President and    Director, Private Label Management, Federated
       Federated Investors Tower          Assistant Treasurer   Investors; formerly Vice President, Product
       Pittsburgh, PA                                           Management, MNC Financial, Inc.; formerly Vice
                                                                President and Director of Investor Relations,
                                                                MNC Financial Inc.
- ---------------------------------------------------------------------------------------------------------------
       Joseph M. Huber                    Secretary             Corporate Counsel, Federated Investors.
       Federated Investors Tower
       Pittsburgh, PA
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
    

FUND OWNERSHIP

Officers and Directors own less than 1% of the Fund's outstanding shares. All of
the Company's Directors and officers hold like positions with Vision Group of
Funds, Inc.

   
As of June 4, 1994, the following shareholder of record owned 5% or more of the
Fund's outstanding shares: Tice & Co., Buffalo, New York, owned approximately
82,866,282 shares (100%).
    

DIRECTOR LIABILITY

With respect to the removal of a Director of the Company, the Company's By-Laws
provide, in accordance with applicable law, that a Director may be removed from
the Board at a meeting of shareholders called for that purpose upon the majority
vote of the shareholders of the Company entitled to vote at such meeting. Such a
meeting shall be called by the President or the Board of Directors or at the
request in writing of shareholders entitled to cast at least


- --------------------------------------------------------------------------------

ten percent (10%) of the votes entitled to be cast at such meeting. Such
shareholders' request shall state the purpose of the proposed meeting, and the
Company shall inform those shareholders of the reasonably estimated cost of
preparing and mailing a notice of the meeting to the other shareholders and, on
payment of these costs, shall notify each shareholder entitled to notice of the
meeting.

INVESTMENT ADVISORY SERVICES
- --------------------------------------------------------------------------------

ADVISER TO THE FUND

Investment advisory services are provided to the Fund by Manufacturers and
Traders Trust Company ("M&T Bank") pursuant to an investment advisory agreement
dated April 25, 1988. The advisory services provided and the expenses assumed by
M&T Bank are described in the Fund's Prospectus. M&T Bank receives no fee from
the Fund with respect to such services or expenses.

   
The investment advisory agreement provides that M&T Bank shall not be liable for
any error of judgment or mistake of law or for any loss suffered by the Fund in
connection with its performance under the advisory agreement, except a loss
resulting from a breach of fiduciary duty with respect to the receipt of
compensation for services or a loss resulting from willful misfeasance, bad
faith or gross negligence on the part of M&T Bank in the performance of its
duties or from reckless disregard by it of its duties and obligations
thereunder. Because of internal controls maintained by M&T Bank to restrict the
flow of non-public information, Fund investments are typically made without any
knowledge of M&T Bank's or its affiliates' lending relationships with an issuer.
    

Unless sooner terminated, the advisory agreement between the Fund and M&T Bank
will continue in effect from year to year if such continuance is approved at
least annually by the Corporation's Board of Directors, or by vote of a majority
of the outstanding shares of the Fund (as defined in the Prospectus), and by a
majority of the Directors who are not parties to the advisory agreement or
interested persons (as defined in the Investment Company Act of 1940) of any
party to the advisory agreement, by vote cast in person at a meeting called for
such purpose. The advisory agreement is terminable at any time on sixty days'
written notice without penalty by the Directors, by vote of a majority of the
outstanding shares of the Fund, or by M&T Bank. The advisory agreement also
terminates automatically in the event of its assignment, as defined in the
Investment Company Act of 1940.

ADVISORY FEES

The advisory services provided and the expenses assumed by M&T Bank are
described in the Fund's Prospectus. M&T Bank receives no fee from the Fund with
respect to such services or expenses.

    STATE EXPENSE LIMITATIONS

       The adviser has undertaken to comply with the expense limitations
       established by certain states for investment companies whose shares are
       registered for sale in those states. If the Fund's normal operating
       expenses (including the investment advisory fee, but not including
       brokerage commissions, interest, taxes, and extraordinary expenses)
       exceed 2 1/2% per year of the first $30 million of average net assets, 2%
       per year of the next $70 million of average net assets, and 1 1/2% per
       year of the remaining average net assets, the adviser will reimburse the
       Fund for its expenses over the limitation.

       If the Fund's monthly projected operating expenses exceed this
       limitation, the investment advisory fee paid will be reduced by the
       amount of the excess, subject to an annual adjustment. If the expense
       limitation is exceeded, the amount to be reimbursed by the adviser will
       be limited, in any single fiscal year, by the amount of the investment
       advisory fee.

       This arrangement is not part of the advisory contract and may be amended
       or rescinded in the future.

ADMINISTRATIVE SERVICES
- --------------------------------------------------------------------------------

   
Federated Administrative Services ("FAS"), a subsidiary of Federated Investors,
provides administrative personnel and services to the Fund for the fees set
forth in the Prospectus. For the fiscal years ended April 30, 1994, 1993 and
1992, FAS received fees from the Fund equal to $138,220, $119,544 and $100,900,
respectively.
    

   
TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
    
- --------------------------------------------------------------------------------

   
Federated Services Company serves as transfer agent for shares of the Fund and
dividend disbursing agent responsible for distributing dividends to the Fund's
shareholders. Prior to March 31, 1994, State Street Bank and Trust Company
served in this capacity. There were no changes in the transfer agency fees
charged as a result of this change.
    


BROKERAGE TRANSACTIONS
- --------------------------------------------------------------------------------

Pursuant to the Fund's advisory agreement, M&T Bank determines which securities
are to be sold and purchased by the Fund and which brokers are to be eligible to
execute its portfolio transactions. Portfolio securities are normally purchased
directly from the issuer or from an underwriter or market maker for the
securities. Purchases from underwriters of portfolio securities include a
commission or concession paid by the issuer to the underwriter and purchases
from dealers serving as market makers may include the spread between the bid and
asking price. While M&T Bank generally seeks competitive spreads or commissions,
the Fund may not necessarily pay the lowest spread or commission available on
each transaction for reasons discussed below.

When selecting brokers and dealers to handle the purchase and sale of portfolio
instruments, the adviser looks for prompt execution of the order at a favorable
price. In working with dealers, the adviser will generally use those who are
recognized dealers in specific portfolio instruments, except when a better price
and execution of the order can be obtained elsewhere. The adviser makes
decisions on portfolio transactions and selects brokers and dealers subject to
review by the Board of Directors.

The adviser may select brokers and dealers who offer brokerage and research
services. These services may be furnished directly to the Fund or to the
adviser. This information is in addition to and not in lieu of services required
to be performed by M&T Bank. Such information may be useful to M&T Bank in
serving both the Fund and other clients, and conversely, supplemental
information obtained by the placement of business of other clients may be useful
to M&T Bank in carrying out its obligations to the Fund. This information may
include:

- - advice as to the advisability of investing in securities;

- - security analysis and reports;

- - economic studies;

- - industry studies;

- - receipt of quotations for portfolio evaluations; and

- - similar services.

The adviser and its affiliates exercise reasonable business judgment in
selecting brokers and dealers who offer brokerage and research services to
execute securities transactions. They determine in good faith that commissions
charged by such persons are reasonable in relationship to the value of the
brokerage and research services provided.

The Fund will not execute portfolio transactions through, acquire portfolio
securities issued by, make savings deposits in, or enter into repurchase or
reverse repurchase agreements with M&T Bank, or its affiliates, and will not
give preference to M&T Bank's correspondents with respect to such transactions,
securities, savings deposits, repurchase agreements and reverse repurchase
agreements. While serving as investment adviser to the Fund, M&T Bank has agreed
to maintain its policy and practice of conducting its Trust and Investment
Services Division independently of its commercial department. The Fund's
advisory agreement provides that, in making investment recommendations for the
Fund, Trust and Investment Services Division personnel will not inquire or take
into consideration whether the issuer of securities proposed for purchase or
sale by the Fund is a customer of the commercial department and, in dealing with
its commercial customers, the commercial department will not inquire or take
into consideration whether securities of such customers are held by the Fund.

Investment decisions for the Fund are made independently from those for any
other investment portfolios or accounts managed by M&T Bank. Such other
portfolios or accounts may also invest in the same securities as the Fund. When
a purchase or sale of the same security is made at substantially the same time
on behalf of the Fund and another portfolio or account, the transaction will be
averaged as to price, and available investments allocated as to amount, in a
manner which M&T Bank believes to be equitable to the Fund and such other
portfolio or account. In some instances, this investment procedure may adversely
affect the price paid or received by the Fund or the size of the position
obtained or sold by the Fund. To the extent permitted by law, M&T Bank may
aggregate the securities to be sold or purchased for the Fund with those to be
sold or purchased for other portfolios or accounts in order to obtain the best
execution.

The Fund does not intend to seek profits through short-term trading. The Fund's
annual portfolio turnover will be relatively high but portfolio turnover is not
expected to have a material effect on the net income of the Fund. The Fund's
portfolio turnover rate is expected to be zero for regulatory reporting
purposes.

DESCRIPTION OF FUND SHARES
- --------------------------------------------------------------------------------

   
The Company's Articles of Incorporation authorize the Board of Directors to
issue up to 10 billion full and fractional shares of Common Stock, of which 2
billion shares have been classified into two classes of 1 billion shares each,
as described in the Fund's Prospectus. Eight billion shares remain unclassified
at this time. Shares of Class A Common Stock represent interest in the Fund and
shares of Class B Common Stock represent interest in the Company's Vision
Fiduciary New York Tax-Free Portfolio, which no longer has any assets or shares
outstanding.
    


- --------------------------------------------------------------------------------

The Board of Directors may classify or reclassify any unissued shares of the
Company into one or more additional classes by setting or changing in any one or
more respects their respective preferences, conversion or other rights, voting
powers, restrictions, limitations as to dividends, qualifications, and terms and
conditions of redemption.

   
Shares have no subscription or pre-emptive rights and only such conversion or
exchange rights as the Board may grant in its discretion. When issued for
payment as described in the Fund's Prospectus and this Statement of Additional
Information, the Fund's shares will be fully paid and non-assessable. In the
event of a liquidation or dissolution of the Company, shares of the Fund are
entitled to receive the assets available for distribution belonging to the Fund,
and a proportionate distribution, based upon the relative asset values of the
Fund and any other portfolio of the Company, of any general assets not belonging
to any particular portfolio which are available for distribution.
    

Rule 18f-2 under the Investment Company Act of 1940 provides that, any matter
required to be submitted to the holders of the outstanding voting securities of
an investment company such as the Company shall not be deemed to have been
effectively acted upon unless approved by the holders of a majority of the
outstanding shares of each portfolio affected by the matter. A portfolio is
affected by a matter unless it is clear that the interests of each portfolio in
the matter are identical, or that the matter does not affect any interest of the
portfolio. Under Rule 18f-2 the approval of an investment advisory agreement or
any change in a fundamental investment policy would be effectively acted upon
with respect to a portfolio only if approved by a majority of the outstanding
shares of such portfolio. However, Rule 18f-2 also provides that the
ratification of independent certified public accountants, the approval of
principal underwriting contracts and the election of directors may be
effectively acted upon by shareholders of the Company voting without regard to
class.

   
Notwithstanding any provision of Maryland law requiring a greater vote of the
Company's shares (or of any class voting as a class) in connection with any
corporate action, unless otherwise provided by law (for example, by Rule 18f-2)
or by the Company's Articles of Incorporation, the Company may take or authorize
such action upon the favorable vote of the holders of more than 50% of the
outstanding Common Stock of the Fund and any other portfolio of the Company
(voting together without regard to class).
    

PURCHASING SHARES
- --------------------------------------------------------------------------------

   
Shares are sold at their net asset value without a sales charge on days the New
York Stock Exchange and the Federal Reserve wire system are open for business.
The procedure for purchasing shares of the Fund is explained in the Prospectus
under "Investing in the Fund." Shares are sold to customer accounts in which M&T
Bank's Trust Division or an affiliate exercises investment discretion.
    

   
CONVERSION TO FEDERAL FUNDS
    

   
It is the Fund's policy to be as fully invested as possible so that maximum
interest may be earned. To this end, all payments from shareholders must be in
federal funds or be converted into federal funds. M&T Bank and Federated
Services Company act as the shareholders' agents in depositing checks and
converting them to federal funds.
    

CASH SWEEP PROGRAM

The Fund reserves the right to create a Cash Sweep Program in the future. For
participating accounts, cash accumulations in demand deposit accounts with M&T
Bank would be automatically invested in shares of the Fund on a day selected by
M&T Bank and its customer, or when the demand deposit account reaches a
predetermined dollar amount (e.g., $5,000).

    PARTICIPATING DEPOSITORY INSTITUTIONS

       Participating depository institutions would be responsible for prompt
       transmission of orders relating to the program. These depository
       institutions would be the record owners of the shares of the Fund.
       Depository institutions participating in this program would be able to
       charge their customers for services relating to the program. This
       Statement of Additional Information should, therefore, be read together
       with any agreement between the customer and the depository institution
       with regard to the services to be provided, the fees to be charged for
       those services, and any restrictions and limitations that would be
       imposed. Beneficial ownership of Fund shares held by M&T Bank and other
       institutional investors on behalf of their customers would be recorded by
       the institutions and reflected in the regular account statements provided
       by institutions to their customers.


DETERMINING NET ASSET VALUE
- --------------------------------------------------------------------------------

The Fund attempts to stabilize the value of a share at $1.00. The days on which
net asset value is calculated by the Fund are described in the Prospectus.

USE OF THE AMORTIZED COST METHOD

The Directors have decided that the best method for determining the value of
portfolio instruments is amortized cost. Under this method, portfolio
instruments are valued at the acquisition cost as adjusted for amortization of
premium or accumulation of discount rather than at current market value. The
Board of Directors continually assesses this method of valuation and recommends
changes where necessary to assure that the Fund's portfolio instruments are
valued at their fair value as determined in good faith by the Directors.

The Fund's use of the amortized cost method of valuing portfolio instruments
depends on its compliance with certain conditions of Rule 2a-7 (the "Rule")
promulgated by the Securities and Exchange Commission under the Investment
Company Act of 1940. Under the Rule, the Directors must establish procedures
reasonably designed to stabilize the net asset value per share, as computed for
purposes of distribution and redemption, at $1.00 per share, taking into account
current market conditions and the Fund's investment objective.

Under the Rule, the Fund is permitted to purchase instruments which are subject
to demand features or standby commitments. As defined by the Rule, a demand
feature entitles the Fund to receive the principal amount of the instrument from
the issuer or a third party on (1) no more than 30 days' notice or (2) at
specified intervals not exceeding one year on no more than 30 days' notice. A
standby commitment entitles the Fund to achieve same day settlement and to
receive an exercise price equal to the amortized cost of the underlying
instrument plus accrued interest at the time of exercise.

    MONITORING PROCEDURES

       The Directors' procedures include monitoring the relationship between the
       amortized cost value per share and the net asset value per share based
       upon available indications of market value. The Directors will decide
       what, if any, steps should be taken if there is a difference of more than
       0.5% between the two values. The Directors will take any steps they
       consider appropriate (redemption in kind or shortening the average
       portfolio maturity) to minimize any material dilution or other unfair
       results arising from differences between the two methods of determining
       net asset value.

    INVESTMENT RESTRICTIONS

       The Rule requires that the Fund limit its investments to instruments
       that, in the opinion of the Directors, present minimal credit risk and
       have received the requisite rating from one or more nationally recognized
       statistical rating organization. If the instruments are not rated, the
       Directors must determine that they are of comparable quality. The Rule
       also requires the Fund to maintain a dollar-weighted average portfolio
       maturity (not more than 90 days) appropriate to the objective of
       maintaining a stable net asset value of $1.00 per share. In addition,
       no instrument with a remaining maturity of more than 397 days can be
       purchased by the Fund.

       Should the disposition of a portfolio security result in a
       dollar-weighted average portfolio maturity of more than 90 days, the Fund
       will invest its available cash to reduce the average maturity to 90 days
       or less as soon as possible.

It is the Fund's usual practice to hold portfolio securities to maturity and
realize par, unless the investment adviser determines that sale or other
disposition is appropriate in light of the Fund's investment objective. Under
the amortized cost method of valuation, neither the amount of daily income nor
the net asset value is affected by any unrealized appreciation or depreciation
of the portfolio.

In periods of declining interest rates, the indicated daily yield on shares of
the Fund computed by dividing the annualized daily income on the Fund's
portfolio by the net asset value computed as above may tend to be higher than a
similar computation made by using a method of valuation based upon market prices
and estimates.

In periods of rising interest rates, the indicated daily yield on shares of the
Fund computed the same way may tend to be lower than a similar computation made
by using a method of calculation based upon market prices and estimates.

REDEEMING SHARES
- --------------------------------------------------------------------------------

Shares of the Fund may be redeemed by contacting the Trust Division of M&T Bank.
The Fund redeems shares at the next computed net asset value after the Fund
receives the redemption request. Redemption procedures are explained in the
Prospectus under "Redeeming Shares."


TAX STATUS
- --------------------------------------------------------------------------------

THE FUND'S TAX STATUS

The Fund will pay no federal income tax because it expects to meet the
requirements of Subchapter M of the Internal Revenue Code applicable to
regulated investment companies and to receive the special tax treatment afforded
to such companies. To qualify for this treatment, the Fund must, among other
requirements:

- - derive at least 90% of its gross income from dividends, interest, and gains
  from the sale of securities;

- - derive less than 30% of its gross income from the sale of securities held less
  than three months;

- - invest in securities within certain statutory limits; and

- - distribute to its shareholders at least 90% of its net income earned during
  the year.

SHAREHOLDERS' TAX STATUS

Shareholders are subject to federal regular income tax on dividends received as
cash or additional shares. No portion of any income dividend paid by the Fund is
eligible for the dividends received deduction available to corporations. These
dividends, and any short-term capital gains, are taxable as ordinary income. Net
income for dividend purposes includes (i) interest and dividends accrued and
discount earned on the Fund's assets (including both original issue and market
discount), less (ii) amortization of any premium and accrued expenses directly
attributable to the Fund, and the general expenses (e.g. legal, accounting and
directors' fees) of the Company prorated to the Fund on the basis of its
relative net assets.

    CAPITAL GAINS

       Capital gains experienced by the Fund could result in an increase in
       dividends. Capital losses could result in a decrease in dividends. If for
       some extraordinary reason the Fund realizes net long-term capital gains,
       it will distribute them at least once every 12 months.

YIELD
- --------------------------------------------------------------------------------

   
The Fund's yield for the seven-day period ended April 30, 1994 was 3.43%.
    

The Fund calculates its yield daily, based upon the seven days ending on the day
of the calculation, called the "base period." This yield is computed by:

- - determining the net change in the value of a hypothetical account with a
  balance of one share at the beginning of the base period, with the net change
  excluding capital changes but including the value of any additional shares
  purchased with dividends earned from the original one share and all dividends
  declared on the original and any purchased shares;

- - dividing the net change in the account's value by the value of the account at
  the beginning of the base period to determine the base period return; and

- - multiplying the base period return by (365/7).

To the extent that financial institutions and broker/dealers charge fees in
connection with services provided in conjunction with an investment in the Fund,
the performance will be reduced for those shareholders paying those fees.

EFFECTIVE YIELD
- --------------------------------------------------------------------------------

The Fund's effective yield for the seven-day period ended April 30, 1994 was
3.49%.

The Fund's effective yield is computed by compounding the unannualized base
period return by:

- - adding 1 to the base period return;

- - raising the sum to the 365/7th power; and

- - subtracting 1 from the result.

PERFORMANCE COMPARISONS
- --------------------------------------------------------------------------------

The Fund's performance depends upon such variables as:

- - portfolio quality;

- - average portfolio maturity;

- - type of instruments in which the portfolio is invested;

- - changes in interest rates on money market instruments;

- - changes in Fund expenses; and

- - the relative amount of Fund cash flow.


- --------------------------------------------------------------------------------

   
Investors may use financial publications and/or indices to obtain a more
complete view of the Fund's performance. When comparing performance, investors
should consider all relevant factors such as the composition of any index used,
prevailing market conditions, portfolio compositions of other funds, and methods
used to value portfolio securities and compute offering price. The financial
publications and/or indices which the Fund uses in advertising may include:
    

- - LIPPER ANALYTICAL SERVICES, INC. ranks funds in various fund categories by
  making comparative calculations using total return. Total return assumes the
  reinvestment of all income dividends and capital gains distributions, if any.
  From time to time, the Fund will quote its Lipper ranking in the "money market
  instrument funds" category in advertising and sales literature.

   
From time to time as it deems appropriate, the Fund may advertise the
performance of its shares using charts, graphs and descriptions, compared to
federally insured bank products, including certificates of deposit and time
deposits, and to money market funds using the Lipper Analytical Services money
market instruments average. Unlike federally insured bank products, the shares
of the Fund are not insured.
    

Advertisements and other sales literature for the Fund may refer to total
return. Total return is the historic change in the value of an investment in the
Fund based on the monthly reinvestment of dividends over a specified period of
time.


   
APPENDIX
    
- --------------------------------------------------------------------------------

   
STANDARD AND POOR'S CORPORATION COMMERCIAL PAPER RATING DEFINITIONS
    

   
A-1--This highest category indicates that the degree of safety regarding timely
payment is strong. Those issues determined to possess extremely strong safety
characteristics are denoted with a plus sign (+) designation.
    

   
A-2--Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as for
issues designated "A-1".
    

   
MOODY'S INVESTORS SERVICE, INC. COMMERCIAL PAPER RATING DEFINITIONS
    

   
PRIME-1--Issuers rated PRIME-1 (or related supporting institutions) have a
superior capacity for repayment of short-term promissory obligations. PRIME-1
repayment capacity will normally be evidenced by the following characteristics:
    

   
- - Leading market positions in well established industries.
    

   
- - High rates of return of funds employed.
    

   
- - Conservative capitalization structure with moderate reliance on debt and ample
  asset protection.
    

   
- - Broad margins in earnings coverage of fixed financial charges and high
  internal cash generation.
    

   
- - Well-established access to a range of financial markets and assured sources of
  alternate liquidity.
    

   
PRIME-2--Issuers rated PRIME-2 (or related supporting institutions) have a
strong capacity for repayment of short-term promissory obligations. This will
normally be evidenced by many of the characteristics cited above, but to a
lesser degree. Earnings trends and coverage ratios, while sound, may be more
subject to variation. Capitalization characteristics, while still appropriate,
may be more affected by external conditions. Ample alternate liquidity is
maintained.
    

   
FITCH INVESTORS SERVICE COMMERCIAL PAPER RATING DEFINITIONS
    

   
F-1--VERY STRONG CREDIT QUALITY. Issues assigned this rating reflect an
assurance for timely payment only slightly less in degree than issues rated
F-1+.
    

   
F-2--GOOD CREDIT QUALITY. Issues carrying this rating have a satisfactory degree
of assurance for timely payment, but the margin of safety is not as great as for
issues assigned F-1+ and F-1 ratings.
    

   
0072401B (6/94)
    



PART C. OTHER INFORMATION.

Item 24.  Financial Statements and Exhibits:

          (a)  Financial Statements (Filed in Part A)
          (b)  Exhibits:
               (1)  Paper copy of Articles of Incorporation of
                    the Registrant (1);
               (2)  Paper copy of By-Laws of the Registrant
                    (3);
               (3)  Not applicable;
               (4)  Paper copy of Specimen Certificate for
                    Shares of Capital Stock of the Registrant
                    (2);
               (5)  Conformed Copy of Investment Advisory
                    Contract of the Registrant; +
               (6)  (i)  Paper Copy of Distributor's
                         Contract of the Registrant (5);
                    (ii) Paper Copy of Administrative
                         Agreement (6);
               (7)  Not applicable;
               (8)  Paper Copy of Custodian Agreement of the
                    Registrant (5);
               (9)  Conformed Copy of Assignment of Transfer
                    Agency and Service Agreement of the
                    Registrant; +
               (10) Paper copy of of Opinion and Consent of
                    Counsel as to legality of shares being
                    registered (3);
               (11) Copy of Consent of Independent
                         Auditors;+
               (12) Not applicable;
               (13) Paper copy of Initial Capital
                    Understanding (2);
               (14) Not applicable;
               (15) Not applicable;
               (16) Paper copy of Schedule for Computation
                    of Fund Performance Data (3);
               (17) Conformed copy of Power of Attorney; +
               (18) Conformed copy of Opinion and Consent of
                    Counsel as to Availability of Rule
                    485(b).+

Item 25.  Persons Controlled by or Under Common Control with
                                   Registrant

          None



+    All exhibits have been filed electronically.
1.   Response is incorporated by reference to Registrant's
     Initial Registration Statement on Form N-1A filed March 14,
     1988.  (File Nos. 33-20627 and 811-5513)
2.   Response is incorporated by reference to Registrant's Pre-
     Effective Amendment No. 1 on Form N-1A filed on April 28,
     1988.  (File Nos. 33-20627 and 811-5513)
3.   Response is incorporated by reference to Registrant's Post-
     Effective Amendment No. 1 on Form N-1A filed November 23,
     1988.  (File Nos. 33-20627 and 811-5513)
4.   Response is incorporated by reference to Registrant's Post-
     Effective Amendment No. 3 on Form N-1A filed June 30, 1989.
     (File Nos. 33-20627 and 811-5513)
5.   Response is incorporated by reference to Registrant's Post-
     Effective Amendment No. 4 on Form N-1A filed August 10,
     1990.  (File Nos. 33-20627 and 811-5513)
6.   Response is incorporated by reference to Registrant's Post-
     Effective Amendment No. 7 on Form N-1A filed June 26, 1991.
     (File Nos. 33-20627 and 811-5513)
Item 26.  Number of Holders of Securities:

                                        Number of Record Holders
          Title of Class                  as of June 4, 1994
          Shares of capital stock
          ($0.001 per Share par value)

          Vision Fiduciary Money Market           4
            Fund


Item 27.  Indemnification:  (6).

Item 28.  Business and Other Connections of Investment Adviser:

          (a)         Manufacturers & Traders Trust Company
             ("M&T Bank") performs investment advisory services
             for the Registrant.  M&T Bank is the primary
             banking subsidiary of First Empire State
             Corporation, a $10.4 billion bank holding company,
             as of December 31, 1993, headquartered in Buffalo,
             New York.  M&T Bank had $1.6 billion in assets, as
             of December 31, 1993, and over 120 offices
             throughout New York State plus offices in New York
             City and the Bahamas.

             M&T Bank was founded in 1856 and provides
             comprehensive banking and financial services to
             individuals, governmental entities and businesses
             throughout western New York.  Except for Vision
             Group of Funds, Inc. and the Company, M&T Bank
             does not presently provide investment advisory
             services to any other registered investment
             companies.  The Fund's investments are managed
             through the Trust & Investment Services Division
             of M&T Bank.

             The principal executive Officers and Directors of
             M&T Bank  are set forth in the following tables.
             Unless otherwise noted, the position listed under
             Other Substantial Business, Profession, Vocation
             or Employment is with the M & T Bank.

                                             Other Substantial
                          Position with      Business,
Profession,
     Name                 the Adviser        Vocation or
Employment

Brent D. Baird            Director           Private Investor
1350 One M&T Plaza
Buffalo, NY  14203-2396

Sister Angela Bontempo    Director           Former Administrator-
460 West 41st Street                         Health Services
New York, NY  10036-6898                     Covenant House

William A. Buckingham     Executive Officer  Executive Vice
President
One M&T Plaza                                First Empire State
Buffalo, NY  14203-2399                      Corporation and
                                             Manufacturers and
                                             Traders Trust
Company




6.   Response is incorporated by reference to Registrant's Post-
     Effective Amendment No. 7 on Form N-1A filed June 26, 1991.
     (File Nos. 33-20627 and 811-5513)

                                             Other Substantial
                          Position with      Business, Profession,
     Name                 the Adviser        Vocation or Employment

David N. Campbell         Director           Chairman of the
Board
800 Delaware Avenue                          and Chief Executive
Buffalo, NY  14209-2094                      Officer
                                             Computer Task Group, Inc

Atwood Collins, III       Executive Officer  Executive Vice
President
41 West 42nd Street                          and Chief Operating
28th Floor                                   Officer The East New
New York, NY  10036-8003                     York Savings Bank

Barber B. Conable, Jr.    Director           Former Member of
P.O. Box 218                                 Congress; Retired
Alexander, NY  14005-0218                    President
                                             The World Bank

Richard E. Garman         Director           President and Chief
2544 Clinton Street                          Executive Officer
Buffalo, NY  14224-1092                      Buffalo Crushed Stone, Inc.

James V. Glynn            Director           President
151 Buffalo Avenue                           Maid of the Mist
Suite 204                                    Corporation
Niagara Falls, NY  14303-1288

Brian E. Hickey           Executive Officer  President -
Rochester
44 Exchange Street                           Division-
Manufacturers
Rochester, NY  14614                         and Traders Trust
                                             Company

Patrick W.E. Hodgson      Director           President
248 Pall Mall Street                         Cinnamon Investments
Suite 400                                    Limited
London, Ontario
CANADA  N6A 5P6

James L. Hoffman          Executive Officer  President-Hudson Valley
P.O. Box 10090                               Division
Newburgh, NY  12552-0090                     Manufacturers and Traders
                                             Trust Company

Robert J. Irwin           Advisory Director  Retired President and
Ellicott Station                             Chief Executive
Officer
P.O. Box 1210                                Niagara Share Corportion
Buffalo, NY  14205-1210

Wilfred J. A. Larson      Director           Retired President and
100 Forest Avenue                            Chief Executive
Officer
Buffalo, NY  14213-1091                      Westwood-Squibb
                                             Pharmaceuticals Inc.

Barbara L.Laughlin        Executive Officer  Executive Vice President
One M&T Plaza                                First Empire State
Buffalo, NY  14203-2399                      Corportion and
                                             Manufacturers and Traders
                                             Trust Company

Donald P. Quinlan         Director           Retired Chairman of the
P.O. Box 1271                                Board and Chief Executive
Buffalo, NY  14240-1271                      Officer Graphic Controls
                                             Corporation

Paul B. Murray            Executive Officer  Chairman of the Board,
41 West 42nd Street                          President and Chief
28th Floor                                   Executive Officer
New York, NY  10036-8003                     The East New York Savings
                                             Bank

Jorge G. Pereira          Director           Vice Chairman of the
654 Madison Avenue                           Board First Empire State
2nd Floor                                    Corporation and
New York, NY  10021-8463                     Manufacturers and
                                             Traders Trust Company

William C. Rappolt        Executive Officer  Executive Vice President
One M&T Plaza                                and Treasurer
Buffalo, NY 14203-2399                       First Empire State
                                             Corporation and
                                             Manufacturers and Traders

Melinda R. Rich           Director           Vice President, Corporate
P.O. Box 245                                 Services, Rich Products
Buffalo, NY  14240-0245                      Corp. Trust Company

Robert E. Sadler, Jr.     Executive Officer  Executive Vice President
One M&T Plaza                                First Empire State
Buffalo, NY  14203-2399                      Corporation and
                                             Manufacturers and Traders
                                             Trust Company

Harry R. Stainrook        Executive Officer  Executive Vice President
One M&T Plaza                                First Empire State
Buffalo, NY  14203-2399                      Corportion and
                                             Manufacturers and Traders
                                             Trust Company

Raymond D. Stevens, Jr.   Director           Chairman of the Board
P.O. Box 22                                  Pratt & Lambert, Inc.
Buffalo, NY  14240-0022

Harry S. Tishelman        Executive Officer  Senior Vice President
135 Main Street                              Manufacturers and Traders
Nyack, NY  10960-3115                        Trust Company

Peter Tower               Director           Private Investor
50 Muirfield Road
East Aurora, NY  14052-9422

Richard D. Trent          Director           President Emeritus
City University of New York                            Medgar
Evers College
Brooklyn, NY  11210-2889

James L. Vardon           Executive Officer  Executive Vice President
One M&T Plaza                                and Chief Financial
19th Floor                                   Officer First Empire
Buffalo, NY  14203-2399                      State Corporation and
                                             Manufacturers and
                                             Traders Trust
Company

John L. Wehle, Jr.        Director           Chairman of the
445 St. Paul Street                          Board,
   President &
Rochester, NY  14605-1775                    Chief Executive
                                                Officer,
   Genessee
                                                Corporation

Robert G. Wilmers         Director and       Chairman of the Board,
One M&T Plaza             Executive Officer  President and Chief
19th Floor                                   Executive Officer
Buffalo, NY  14203-2399                      First Empire State
                                             Corporation and
                                             Manufacturers and
                                             Traders Trust
Company

Item 29.  Principal Underwriters:

          (a)         Federated Securities Corp., the
             Distributor for shares of the Registrant, also
             acts as principal underwriter for the following
             open-end investment companies: Alexander Hamilton
             Funds; American Leaders Fund, Inc.; Annuity
             Management Series; Automated Cash Management
             Trust; Automated Government Money Trust; BayFunds;
             The Biltmore Funds; The Biltmore Municipal Funds;
             The Boulevard Funds; California Municipal Cash
             Trust; Cambridge Series Trust; Cash Trust Series,
             Inc.; Cash Trust Series II; DG Investor Series;
             Edward D. Jones & Co. Daily Passport Cash Trust;
             Federated ARMs Fund;  Federated Exchange Fund,
             Ltd.; Federated GNMA Trust; Federated Government
             Trust; Federated Growth Trust; Federated High
             Yield Trust; Federated Income Securities Trust;
             Federated Income Trust; Federated Index Trust;
             Federated Intermediate Government Trust; Federated
             Master Trust;  Federated Municipal Trust;
             Federated Short-Intermediate Government Trust;
             Federated Short-Term U.S. Government Trust;
             Federated Stock Trust; Federated Tax-Free Trust;
             Federated U.S. Government Bond Fund; First
             Priority Funds; First Union Funds; Fixed Income
             Securities, Inc.; Fortress Adjustable Rate U.S.
             Government Fund, Inc.; Fortress Municipal Income
             Fund, Inc.; Fortress Utility Fund, Inc.; Fountain
             Square Funds; Fund for U.S. Government Securities,
             Inc.; Government Income Securities, Inc.; High
             Yield Cash Trust; Independence One Mutual Funds;
             Insight Institutional Series, Inc.; Insurance
             Management Series; Intermediate Municipal Trust;
             International Series Inc.; Investment Series
             Funds, Inc.; Investment Series Trust; Liberty
             Equity Income Fund, Inc.; Liberty High Income Bond
             Fund, Inc.; Liberty Municipal Securities Fund,
             Inc.; Liberty U.S. Government Money Market Trust;
             Liberty Utility Fund, Inc.; Liquid Cash Trust;
             Managed Series Trust; Mark Twain Funds; Marshall
             Funds, Inc.; Money Market Management, Inc.; Money
             Market Obligations Trust; Money Market Trust; The
             Monitor Funds; Municipal Securities Income Trust;
             New York Municipal Cash Trust; 111 Corcoran Funds;
             Peachtree Funds; The Planters Funds; Portage
             Funds; RIMCO Monument Funds; The Shawmut Funds;
             Short-Term Municipal Trust; Signet Select Funds;
             SouthTrust Vulcan Funds; Star Funds; The Starburst
             Funds; The Starburst Funds II; Stock and Bond
             Fund, Inc.; Sunburst Funds; Targeted Duration
             Trust; Tax-Free Instruments Trust; Tower Mutual
             Funds; Trademark Funds; Trust for Financial
             Institutions; Trust for Government Cash Reserves;
             Trust for Short-Term U.S. Government Securities;
             Trust for U.S. Treasury Obligations; Vision Group
             of Funds, Inc.; and World Investment Series, Inc.

             Federated Securities Corp. also acts as principal
             underwriter for the following closed-end
             investment company:  Liberty Term Trust, Inc.-
             1999.



          (b)

       (1)                      (2)                   (3)
Name and Principal        Positions and Offices   Positions and Offices
 Business Address            With Underwriter     With Registrant

Richard B. Fisher         Director, Chairman, Chief         --
Federated Investors Tower Executive Officer, Chief
Pittsburgh, PA 15222-3779 Operating Officer, and
                          Asst. Treasurer, Federated
                          Securities Corp.

Edward C. Gonzales        Director, Executive Vice     President and
Federated Investors Tower President, and Treasurer,    Treasurer
Pittsburgh, PA 15222-3779 Federated Securities
                          Corp.

John W. McGonigle         Director, Executive Vice          --
Federated Investors Tower President, and Assistant
Pittsburgh, PA 15222-3779 Secretary, Federated
                          Securities Corp.

John A. Staley, IV        Executive Vice President          --
Federated Investors Tower and Assistant Secretary,
Pittsburgh, PA 15222-3779 Federated Securities Corp.

John B. Fisher            President-Institutional Sales,    --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

James F. Getz             President-Broker/Dealer,          --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Mark R. Gensheimer        Executive Vice President of       --
Federated Investors Tower Bank/Trust
Pittsburgh, PA 15222-3779 Federated Securities Corp.

Mark W. Bloss             Senior Vice President,       --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Theodore Fadool, Jr.      Senior Vice President,       --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Bryant R. Fisher          Senior Vice President,       --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Christopher T. Fives      Senior Vice President,       --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

James S. Hamilton         Senior Vice President,       --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

James M. Heaton           Senior Vice President,       --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

H. Joseph Kennedy         Senior Vice President,       --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Keith Nixon               Senior Vice President,       --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Timothy C. Pillion        Senior Vice President,       --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

James R. Ball             Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Richard W. Boyd           Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Jane E. Broeren-Lambesis  Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Mary J. Combs             Vice President,              --
Federated Investors Tower Federated Securities Corp.             
Pittsburgh, PA 15222-3779

R. Edmond Connell, Jr.    Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Laura M. Deger            Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Jill Ehrenfeld            Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Mark D. Fisher            Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Joseph D. Gibbons         Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

David C. Glabicki         Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Richard C. Gonzales       Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Scott A. Hutton           Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

William J. Kerns          Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

William E. Kugler         Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Dennis M. Laffey          Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Francis J. Matten, Jr.    Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Mark J. Miehl             Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

J. Michael Miller         Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

R. Jeffrey Niss           Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Michael P. O'Brien        Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Solon A. Person, IV       Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Robert F. Phillips        Vice President,              --
Federated Investors Tower  Federated Securities Corp.
Pittsburgh, PA 15222-3779

Eugene B. Reed            Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Paul V. Riordan           Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Charles A. Robison        Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

David W. Spears           Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Jeffrey A. Stewart        Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Thomas E. Territ          Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

William C. Tustin         Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Richard B. Watts          Vice President,              --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Philip C. Hetzel          Assistant Vice President,         --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

Ernest L. Linane          Assistant Vice President,         --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779

S. Elliott Cohan          Secretary, Federated    Assistant
Federated Investors Tower Securities Corp.        Secretary
Pittsburgh, PA 15222-3779



(c)  Not applicable.

Item 30.  Location of Accounts and Records:

All accounts and records required to be maintained by Section
31(a) of the Investment Company Act of 1940 and Rules 31a-1
through 31a-3 promulgated thereunder are maintained at one of
the following locations:

Vision Fiduciary Funds, Inc.   Federated Investors Tower
                               Pittsburgh, Pennsylvania  15222-3779

Federated Services Company     Federated Investors Tower
("Transfer Agent, Dividend     Pittsburgh, Pennsylvania  15222-3779
Disbursing Agent and Portfolio
Recordkeeper")

Federated Administrative Services  Federated Investors Tower
("Administrator")              Pittsburgh, Pennsylvania  15222-3779

Manufacturers and Traders Trust    One M&T Plaza
Company                        Buffalo, New York  14240
("Adviser")

State Street Bank and Trust Company     P.O. Box 8604
("Custodian")                  Boston, Massachusetts  02266-8604

Item 31.  Management Services:  Not applicable.

Item 32.  Undertakings:  Registrant hereby undertakes to comply
          with the provisions of Section 16(c) of the 1940 Act
          with respect to the removal of Directors and the
          calling of special shareholder meetings by
          shareholders.



                         SIGNATURES

   Pursuant to the requirements of the Securities Act of
1933 and the Investment Company Act of 1940, the Registrant,
VISION FIDUCIARY FUNDS, INC., certifies that it meets all of
the requirements for effectiveness of this Amendment to its
Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1933 and has duly caused this Amendment to
its Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, all in the City of
Pittsburgh and Commonwealth of Pennsylvania, on the 24th day
of June, 1994.

                VISION FIDUCIARY FUNDS, INC.

               BY: /s/Victor R. Siclari
               Victor R. Siclari, Assistant Secretary
               Attorney in Fact for Edward C. Gonzales
               June 24, 1994




   Pursuant to the requirements of the Securities Act of
1933, this Amendment to its Registration Statement has been
signed below by the following person in the capacity and on
the date indicated:

   NAME                       TITLE               DATE

By:  /s/Victor R. Siclari
   Victor R. Siclari        Attorney In Fact      June 24, 1994
   ASSISTANT SECRETARY      For the Persons
                            Listed Below

   NAME                       TITLE


Edward C. Gonzales*         President and Treasurer
                            (Principal Financial and
                            Accounting Officer)

Charles L. Davis, Jr.*      Vice President

Randall I. Benderson*       Director

Joseph J. Castiglia*        Director

Daniel R. Gernatt, Jr.*     Director

George K. Hambleton, Jr.*   Director

* By Power of Attorney






                              Exhibit 11 under Form N-1A
                              Exhibit 23 under Item 601/Reg. S-K



        CONSENT OF ERNST & YOUNG, INDEPENDENT AUDITORS



We consent to the references to our firm under the captions
"Financial Highlights" and "Independent Auditors" and to the
use of our report dated June 3, 1994, in Post-Effective
Amendment Number 12 to the Registration Statement (Form N-1A
Number 33-20627) of Vision Fiduciary Money Market Fund, a
portfolio of Vision Fiduciary Funds, Inc.



/s/ Ernst & Young
Pittsburgh, Pennsylvania
June 22, 1994




                                        Exhibit 18 under Form N-1A
                                        Exhibit 99 under Item 601/Reg. S-K


              HOUSTON, HOUSTON & DONNELLY
                    ATTORNEYS AT LAW
                 2510 CENTRE CITY TOWER
WILLIAM McC. HOUSTONPITTSBURGH, PA.  15222
FRED CHALMERS HOUSTON, JR.__________
THOMAS J. DONNELLY
JOHN F. MECK         (412) 471-5828      FRED CHALMERS
HOUSTON
                    FAX (412) 471-0736     (1914 - 1971)


MARIO SANTILLI, JR.
THEODORE M. HAMMER

June 22, 1994



Vision Fiduciary Funds, Inc.
Federated Investors Tower
Pittsburgh, PA  15222-3779

Gentlemen:

     As counsel to Vision Fiduciary Funds, Inc. ("Trust") we
have reviewed Post-effective Amendment No. 12 to the Trust's
Registration Statement to be filed with the Securities and
Exchange Commission under the Securities Act of 1933 (File
No. 33-20627).  The subject Post-effective Amendment will be
filed pursuant to Paragraph (b) of Rule 485 and become
effective pursuant to said Rule on June 30, 1994.

     Our review also included an examination of other
relevant portions of the amended 1933 Act Registration
Statement of the Trust and such other documents and records
deemed appropriate.  On the basis of this review we are of
the opinion that Post-effective Amendment No. 12 does not
contain disclosures which would render it ineligible to
become effective pursuant to Paragraph (b) of Rule 485.

     We hereby consent to the filing of this representation
letter as a part of the Trust's Registration Statement filed
with the Securities and Exchange Commission under the
Securities Act of 1933 and as part of any application or
registration statement filed under the Securities Laws of
the States of the United States.

                                   Very truly yours,

                                   Houston, Houston & Donnelly



                                   By:  Thomas J. Donnelly


TJD:heh



                                  Exhibit 17 under Form N-1A
                          Exhibit 24 under Item 601/Reg. S-K
                              
                              
                      POWER OF ATTORNEY

     Each person whose signature appears below hereby
constitutes and appoints the Secretary and Assistant
Secretary of VISION FIDUCIARY FUNDS, INC. and the Assistant
General Counsel of Federated Investors, Inc., and each of
them, their true and lawful attorneys-in-fact and agents,
with full power of substitution and resubstitution for them
and in their names, place and stead, in any and all
capacities, to sign any and all documents to be filed with
the Securities and Exchange Commission pursuant to the
Securities Act of 1933, the Securities Exchange Act of 1934
and the Investment Company Act of 1940, by means of the
Securities and Exchange Commission's electronic disclosure
system known as Edgar; and to file the same, with all
exhibits thereto and other documents in connection
therewith, with the Securities and Exchange Commission,
granting unto said attorneys-in-fact and agents, and each of
them, full power and authority to sign and perform each and
every act and thing requisite and necessary to be done in
connection therewith, as fully to all intents and purposes
as each of them might or could do in person, hereby
ratifying and confirming all that said attorneys-in-fact and
agents, or any of them, or their or his substitute or
substitutes, may lawfully do or cause to be done by virtue
thereof.


SIGNATURES               TITLE                     DATE



/s/ Edward C. Gonzales   President, Treasurer August 20, 1993
Edward C. Gonzales
                        (Principal Financial and
                         Accounting Officer)


/s/ Randall I. Benderson       Director
Randall I. Benderson



/s/ Joseph J. Castiglia  Director
Joseph J. Castiglia


/s/ Daniel R. Gernatt, Jr.       Director
Daniel R. Gernatt, Jr.



/s/ George K. Hambleton, Jr.      Director
George K. Hambleton, Jr.



Sworn to and subscribed before me this 20th day of August,
1993



/s/ Loretta Y. Crum
Loretta Y. Crum
Notary Public



                                   Exhibit 9 under Form N-1A
                          Exhibit 10 under Item 601/Reg. S-K
                              
   ASSIGNMENT OF THE TRANSFER AGENCY AND SERVICE AGREEMENT
            FOR THE VISION FIDUCIARY FUNDS, INC.


This Agreement is made as of March 31, 1994.

      1.   Assignment.  For good and valuable consideration,
State  Street Bank and Trust Company, with principal offices
at  225  Franklin Street, Boston, Massachusetts  02110  (the
"Bank"), does hereby sell, assign, and transfer to Federated
Services   Company  with  principal  offices  at   Federated
Investors   Tower,   Pittsburgh,  Pennsylvania    15222-3779
("Federated"),  all  of  its right, duties  and  obligations
under the Transfer Agency and Service Agreement made by  the
Bank  with  the Vision Fiduciary Funds, Inc. (the  "Funds"),
dated  July  5,  1990,  concerning the  performance  of  all
transfer agent functions for the Funds (the "Contract").

      2,    Assignee Assumes Duties and Obligations.  By the
acceptance   of  this  assignment,  Federated  assumes   the
performance  of  all  of the Bank's duties  and  obligations
under the assigned Contract, and will indemnify and hold the
Bank harmless from any liability or loss resulting from  the
performance   or   nonperformance  of   these   duties   and
obligations.

      3.    Consent for Assignment.  Per Article 7.C. of the
Contract, the Funds hereby provide their written consent  of
this assignment of the Contract by the Bank to Federated  as
stated herein.

IN  WITNESS  WHEREOF,  the parties hereto  have  caused  the
Agreement  to be executed in their name and on their  behalf
by and through their duly authorized officers, as of the day
and year first above written.

                               STATE STREET BANK
                               AND TRUST COMPANY

                               By: /s/ Michael E. Hagerty
                               Name:  Michael E. Hagerty
                               Title:  Vice President

Attest:   /s/ D. Hufnagel

                               FEDERATED SERVICES COMPANY

                               By:  /s/ James J. Dolan
                               Name:   James J. Dolan
                               Title:  President

Attest:   /s/ Joseph M. Huber

                               VISION FIDUCIARY FUNDS, INC.

                               By:  /s/ Edward C. Gonzales
                               Name:   Edward C. Gonzales
                               Title:  President

Attest:   /s/ Joseph M. Huber



                                   Exhibit 5 under Form N-1A
                          Exhibit 10 under Item 601/Reg. S-K
                              
                              
                VISION FIDUCIARY FUNDS, INC.
                              
                INVESTMENT ADVISORY AGREEMENT
                              
                              

          AGREEMENT made as of April 25, 1988 between VISION
FIDUCIARY FUNDS, INC., a Maryland corporation (the "Fund"),
and M&T BANK, a national banking association with its
principal offices in Buffalo, New York (the "Investment
Adviser").

          WHEREAS, the Fund is registered as an open-end,
diversified, management company under the Investment Company
Act of 1940, as amended ("1940 Act"); and

          WHEREAS, the Fund desires to retain the Investment
Adviser to furnish investment advisory and administrative
services with respect to each of the portfolios offered by
the Fund, and the Investment Adviser is willing to so
furnish such services;

          NOW, THEREFORE, in consideration of the premises
and mutual covenants herein contained, it is agreed between
the parties hereto as follows:

          1.   Appointment.  The Fund hereby appoints the
Investment Adviser to act as investment adviser to the Fund
for the period and on the terms set forth in this Agreement.

          2.   Delivery of Documents.  The Fund has
furnished the Investment Adviser with copies properly
certified or authenticated of each of the following:

               (a)  The Fund's Articles of Incorporation, as
     filed with the Secretary of State of Maryland on
     February 23, 1988, and all amendments thereto;

               (b)  The Fund's By-Laws and amendments
     thereto, as presently in effect and as they shall from
     time to time be amended (the "By-Laws");

               (c)  Resolutions of the Fund's Board of
     Directors authorizing the appointment of the Investment
     Adviser and approving this Agreement;

               (d)  The Fund's Notification of Registration
     on Form N-8A under the 1940 Act as filed with the
     Securities and Exchange Commission on March 14, 1988;

               (e)  The Fund's Registration Statement on
     Form N-1A under the Securities Act of 1933 as amended
     ("1933 Act") (File No. 33-20627) and under the 1940 Act
     as filed with the Securities and Exchange Commission
     and all amendments thereto; and

               (f)  The Fund's most recent prospectus (such
     prospectus, as presently in effect and all amendments
     and supplements thereto, are herein called the
     "Prospectus").

          The Fund will furnish the Investment Adviser from
     time to time with copies of all amendments of or
     supplements to the foregoing.

          3.   Management.  Subject to the supervision of
     the Fund's Board of Directors, the Investment Adviser
     will provide a continuous investment program for the
     Fund, including investment research and management with
     respect to all securities and investments and cash
     equivalents in the portfolio.  The Investment Adviser
     will determine from time to time what securities and
     other investments will be purchased, retained or sold
     by the Fund.  The Investment Adviser will provide the
     services under this Agreement in accordance with the
     Fund's investment objective, policies and restrictions
     as stated in the Prospectus and resolutions of the
     Fund's Board of Directors.  The Investment Adviser
     further agrees that it:

               (a)  will conform with all applicable Rules
     and Regulations of the Securities and Exchange
     Commission and will in addition conduct its activities
     under this Agreement in accordance with any regulations
     of the Comptroller of the Currency pertaining to the
     investment advisory activities of national banks;

               (b)  will not make loans to any person for
     the purpose of purchasing Fund shares or make loans to
     the Fund;

               (c)  will place orders pursuant to the
     investment determinations for the Fund either directly
     with the issuer or with a broker or dealer.  In placing
     orders with brokers and dealers the Investment Adviser
     will attempt, under the circumstances, to obtain the
     execution of orders in an effective manner at the most
     favorable price.  Consistent with this obligation, when
     the execution and price offered by two or more brokers
     or dealers are comparable, the Investment Adviser may,
     in its discretion, purchase and sell portfolio
     securities to and from brokers and dealers who provide
     the Investment Adviser with research advice and other
     services.  In no instance will portfolio securities be
     purchased from or sold to the Fairfield Group, Inc.,
     M&T Bank, or any affiliated person of either the Fund,
     the Fairfield Group, Inc., or M&T Bank.

               (d)  will, together with any sub-advisers,
     maintain all books and records with respect to the
     Fund's securities transactions and will furnish the
     Fund's Board of Directors such periodic and special
     reports as the Board may request;

               (e)  will treat confidentially and as
     proprietary information of the Fund all records and
     other information relative to the Fund and prior,
     present or potential shareholders, and will not use
     such records and information for any purpose other than
     performance of its responsibilities and duties
     hereunder, except after prior notification to, and
     approval in writing by, the Fund, which approval shall
     not be unreasonably withheld and may not be withheld
     where the Investment Adviser may be exposed to civil or
     criminal contempt proceedings for failure to comply,
     when requested to divulge such information by duly
     constituted authorities, or when so requested by the
     Fund; and

               (f)  will maintain its policy and practice of
     conducting its Trust Investment Division independently
     of its Commercial Department.  In making investment
     recommendations of the Fund, Trust Division personnel
     will not inquire or take into consideration whether the
     issuer of securities proposed for purchase or sale for
     the Fund's account are customers of the Commercial
     Department.  In dealing with commercial customers, the
     Commercial Department will not inquire or take into
     consideration whether securities of those customers are
     held by the Fund.

          4.  Services Not Exclusive.  The investment
management services furnished by the Investment Adviser
hereunder are not to be deemed exclusive, and the Investment
Adviser shall be free to furnish similar services to others
whether or not for compensation so long as its services
under this Agreement are not impaired thereby.

          5.  Books and Records.  In compliance with the
requirements of Rule 31a-3 under the 1940 Act, the
Investment Adviser hereby agrees that all records which it
maintains for the Fund are the property of the Fund and
further agrees to surrender promptly to the Fund any of such
records upon the Fund's request.  The Investment Adviser
further agrees to preserve for the periods prescribed by
Rule 31a-2 under the 1940 Act the records required by Rule
31a-1 to be maintained under the 1940 Act.

          6.  Expenses.  During the term of this Agreement,
the Investment Adviser will pay all expenses incurred by it
in connection with its activities under this Agreement other
than the cost of securities (including brokerage
commissions, if any) purchased for the Fund.

          7.  Compensation.  The Fund and the Investment
Adviser expressly agree that the Investment Adviser shall
receive no compensation for its services or reimbursement
for its expenses in connection with this Agreement.

          If in any fiscal year the aggregate expenses of
the Fund (as defined under the securities regulations of any
state having jurisdiction over the Fund) exceed the expense
limitations of any such state, the Investment Adviser will
reimburse the Fund for a portion of such excess expenses
equal to such excess times the ratio of the fees, if any,
otherwise payable to the Investment Adviser hereunder to the
aggregate fees otherwise payable to the Investment Adviser
hereunder and to Fairfield Group, Inc. under an
Administration Agreement between it and the Fund.  The
obligation of the Investment Adviser to reimburse the Fund
hereunder is limited in any fiscal year to the amount of its
fee hereunder for such fiscal year, provided, however, that
notwithstanding the foregoing, the Investment Adviser shall
reimburse the Fund for such proportion of such excess
expenses regardless of the amount of fees paid to it during
such fiscal year to the extent that the securities
regulations of any state having jurisdiction over the Fund
so require.  Such expense reimbursement, if any, will be
estimated daily and reconciled and paid on a monthly basis.

          8.  Limitation of Liability.  The Investment
Adviser shall not be liable for any error of judgment or
mistake of law or for any loss suffered by the Fund in
connection with the performance of this Agreement, except a
loss resulting from a breach of fiduciary duty with respect
to the receipt of compensation for services or a loss
resulting from willful misfeasance, bad faith or gross
negligence on the part of the Investment Adviser in the
performance of its duties or from reckless disregard by it
of its obligations and duties under this Agreement.
Notwithstanding the foregoing, the Investment Adviser shall
be liable to the Fund for the acts and omissions of any sub-
investment adviser to the extent that such sub-investment
adviser is liable to the Investment Adviser for such acts or
omissions under any sub-advisory agreement.

          9.  Duration and Termination.  This Agreement
becomes effective April 25, 1988, provided that it shall
have been approved by the shareholders of the Fund, in
accordance with the requirements under the 1940 Act, and,
unless sooner terminated as provided herein, shall continue
in effect until April 25, 1990.  Thereafter, if not
terminated, this Agreement shall continue in effect for
successive periods of twelve months each ending on April
25th each year, provided such continuance is specifically
approved at least annually (a) by the vote of a majority of
those members of the Fund's Board of Directors who are not
parties to this Agreement or interested persons of any party
to this Agreement, cast in person at a meeting called for
the purpose of voting on such approval, and (b) by the
Fund's Board of Directors or by vote of a majority of the
outstanding voting securities of the Fund.  Notwithstanding
the foregoing, this Agreement may be terminated any time,
without the payment of any penalty, by the Fund (by vote of
the Fund's Board of Directors or by vote of a majority of
the outstanding voting securities of the Fund) or by the
Investment Adviser on sixty days' written notice.  This
Agreement will immediately terminate in the event of its
assignment.  (As used in this Agreement, the terms "majority
of the outstanding voting securities," "interested persons"
and "assignment" shall have the same meaning of such terms
in the 1940 Act.)

          10.  Amendment of this Agreement.  No provision of
this Agreement may be changed, waived, discharged or
terminated orally, but only by an instrument in writing
signed by the party against which enforcement of the change,
waiver, discharge or termination is sought.  No amendment of
this Agreement shall be effective until approved by vote of
a majority of the outstanding voting securities of the Fund.

          11.  Severability.  In the event that this
Agreement is not approved by the majority of the outstanding
voting securities of a portfolio of the Fund, such
disapproval shall not render this Agreement invalid or
unenforceable with respect to other portfolios of the
fund for which shareholder approval of this Agreement has
been obtained.

          12.  Miscellaneous.  The captions in this
Agreement are included for convenience of reference only and
in no way define or delimit any of the provisions hereof or
otherwise affect their construction or effect.  If any
provision of this Agreement shall be held or made invalid by
a court decision, statute, rule or otherwise, the remainder
of this Agreement shall not be affected thereby.  This
Agreement shall be binding upon and shall inure to the
benefit of the parties hereto and their respective
successors and shall be governed by Pennsylvania law.

          IN WITNESS WHEREOF, the parties hereto have caused
this instrument to be executed by their officers designated
below as of the day and year first above written.

                            VISION FIDUCIARY FUNDS, INC.



                            By:/s/ Frank Bruzda
                               As Its President



                            M&T BANK



                            By:/s/ William Newman
                               As Its Chief Investment
                                     Officer and Senior Vice
                                     President




© 2022 IncJournal is not affiliated with or endorsed by the U.S. Securities and Exchange Commission