HIBERNIA FUNDS
Supplement to Prospectus
The fourth, fifth and sixth paragraphs under "Redeeming Shares - By Telephone"
on page 40 of your prospectus are hereby deleted and replaced in their entirety
by the following:
"With respect to the Money Market Funds, redemption requests must be
transmitted to the appropriate Fund before 2:00 p.m. (Central Standard
Time) in order for shares to be redeemed at that day's net asset value.
HISI or the broker/dealer is responsible for promptly submitting
redemption requests and providing proper written redemption
instructions to the Fund. Registered broker/dealers may charge
customary fees and commissions for this service.
For calls received before 2:00 p.m. (Central Standard Time), proceeds
will normally be wired the same day to the shareholder's account at a
domestic commercial bank that is a member of the Federal Reserve Wire
System or a check will be sent to the address of record. For calls
received after 2:00 p.m. (Central Standard Time), proceeds will
normally be wired the following business day. Proceeds from redemption
requests received on holidays when wire transfers are restricted will
be wired the following business day. In no event will proceeds be wired
more than five days after a proper request for redemption has been
received.
A daily dividend will be paid on shares of the Money Market Funds
redeemed if the redemption request is received after 2:00 p.m. (Central
Standard Time). However, the proceeds are normally not wired until the
following business day. Redemption requests received before 2:00 p.m.
(Central Standard Time) will normally be paid the same day but will not
be entitled to that day's dividend. If at any time, the Money Market
Funds shall determine it necessary to terminate or modify this method
of redemption, shareholders would be promptly notified."
Please be advised that effective May 24, 1999, the Funds' adviser, Hibernia
National Bank, announced that the Hibernia Cash Reserve Fund, Hibernia U.S.
Government Income Fund and Hibernia U.S. Treasury Money Market Fund will be
managed by a committee of investment professionals from Hibernia National Bank.
<PAGE>
Accordingly, the sixth paragraph under the section entitled "Adviser's
Background" on page 28 of your prospectus is hereby deleted and replaced it in
its entirety by the following:
"The Cash Reserve Fund, U.S. Government Income Fund and the U.S. Treasury
Money Market Fund are managed by a committee of investment professionals from
Hibernia National Bank."
June 1, 1999
[Graphic]
Federated Investors
Federated Securities Corp., Distributor
Cusip 428661888
Cusip 428661300
Cusip 428661409
Cusip 428661870
G01034-10 (6/99)
