HIBERNIA FUNDS
Hibernia Capital Appreciation Fund
Hibernia Louisiana Municipal Income Fund
Hibernia Mid Cap Equity Fund
Hibernia Total Return Bond Fund
Hibernia U.S. Government Income Fund
Hibernia Cash Reserve Fund
Hibernia U.S. Treasury Money Market Fund
Supplement to Prospectus Dated October 31, 1998
At a Special Meeting of Shareholders to be held on September 13, 1999,
shareholders of the above-referenced Funds will be asked to vote on the changes
described below. If approved by shareholders, these changes will take effect on
or after September 14, 1999. Please keep this supplement for your records.
Shareholders will be asked to consider the following proposals:
(1) To elect two Trustees.
(2) To make changes to the Funds' fundamental investment
policies:
(a) To amend the Funds' fundamental investment
policies regarding diversification
(Louisiana Municipal Income Fund is a
non-diversified fund, therefore its
shareholders will not vote on this
Proposal.);
(b) To amend the Funds' fundamental investment policies
regarding borrowing money and issuing senior
securities;
(c) To amend the Funds' fundamental investment
policies regarding investments in real
estate;
(d) To amend the Funds' fundamental investment
policies regarding investing in commodities;
(e) To amend the Funds' fundamental investment
policies regarding underwriting securities;
(f) To amend the Funds' fundamental investment
policies regarding lending by the Funds;
(g) To amend, and to make non-fundamental, the
Funds' (except U.S. Treasury Money Market
Fund) fundamental investment policies
regarding buying securities on margin;
(h) To amend, and to make non-fundamental, the
Funds' (except U.S. Treasury Money Market
Fund) fundamental investment policies
regarding pledging assets;
(i) To amend, and to make non-fundamental, the
Louisiana Municipal Income Fund's
fundamental investment policy regarding
investing in restricted securities (Only
shareholders of Louisiana Municipal Income
Fund are entitled to vote on this
Proposal.); and
(j) To amend, and to make non-fundamental, Cash
Reserve Fund's fundamental investment policy
regarding acquiring securities (Only
shareholders of Cash Reserve Fund are
entitled to vote on this Proposal.).
(3) To eliminate certain of the Funds' fundamental
investment policies:
(a) To remove the Funds' (except U.S. Treasury Money Market
Fund) fundamental investment policies on selling
securities short; and
(b) To remove the Capital Appreciation Fund's, Louisiana
Municipal Income Fund's and U.S. Government Income
Fund's fundamental investment policies on investing in
oil, gas, and minerals. (Only shareholders of the
Capital Appreciation Fund, Louisiana Municipal Income
Fund and U.S. Government Income Fund are entitled to
vote on this Proposal.)
To transact such other business as may properly come
before the meeting or any adjournment thereof.
August 27, 1999
Federated Securities Corp., Distributor
Federated Investors, Inc.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
Cusip 428661102 Cusip 428661201 Cusip 428661508 Cusip 428661607 Cusip 428661706
Cusip 428661805 Cusip 428661888 Cusip 428661300 Cusip 428661409 Cusip 428661870
G01034-12 (8/99)
