TOWER MUTUAL FUNDS
Supplement to Prospectuses dated October 31, 1993
A. Effective March 1, 1994, the Custodian for the portfolios of Tower
Mutual Funds will be Hibernia National Bank, New Orleans, Louisiana.
Please delete the reference to State Street Bank and Trust Company,
Boston, Massachusetts, as Custodian and replace it with Hibernia
National Bank, New Orleans, Louisiana, in all prospectuses.
B. On the inside back cover of all prospectuses, please include the
following address for Hibernia National Bank as Custodian:
Attention: Tower Mutual Funds
Trust Operations
P.O. Box 61540
New Orleans, Louisiana 70161
C. Effective March 1, 1994, the Transfer Agent for the portfolios of
Tower Mutual Funds will be Federated Services Company, Pittsburgh,
Pennsylvania. Please delete any reference to State Street Bank and
Trust Company, Boston, Massachusetts, as Transfer Agent and replace it
with Federated Services Company, Pittsburgh, Pennsylvania, in all
prospectuses.
March 11, 1994
FEDERATED SECURITIES CORP.
Distributor
4020211A (3/94)
TOWER MUTUAL FUNDS
Supplement to Statements of Additional Information dated October 31, 1993
A. Effective March 1, 1994, the Custodian for the portfolios of Tower
Mutual Funds will be Hibernia National Bank, New Orleans,
Louisiana. Please include a section entitled "Custodian" after
the section entitled "Administrative Services" and before the
section entitled "Brokerage Transactions" which states as follows:
"Custodian
Under the Custodian Agreement, Hibernia National Bank holds
the Fund's portfolio securities in safekeeping and keeps all
necessary records and documents relating to its duties. For
its services, Hibernia National Bank receives an annual fee,
payable monthly, of the Fund's average aggregate daily net
assets. Hibernia National Bank receives the fee based on the
following graduated scale:
Annual Fee Average
Aggregate Daily Net Assets
.025 % on the first $100 million
.020 % on the next $200 million
.010 % on the next $200 million
.005 % on assets in excess of $200
million
There is a minimum fee per Fund of $15,000. In addition,
Hibernia National Bank is reimbursed for its out-of-pocket
expenses."
B. Effective March 1, 1994, the Transfer Agent for the Fund will be
Federated Services Company, Pittsburgh, Pennsylvania. In the
section entitled "Redeeming Shares" please delete the reference to
State Street Bank and replace it with Federated Services Company.
March 11, 1994
FEDERATED SECURITIES CORP.
Distributor
4020211B (3/94)
