INDEPENDENCE ONE MUTUAL FUNDS
Supplement to Prospectuses dated June 30, 1994
The following information concerns Michigan National Bank ("MNB"),
investment adviser to Independence One Mutual Funds (the "Trust").
MNB is a wholly-owned subsidiary of Michigan National Corporation. On
February 4, 1995, the Board of Directors of Michigan National Corporation
approved a definitive agreement for the acquisition of that company by
National Australia Bank Limited ("NAB"), which is a transnational banking
organization, headquartered in Melbourne, Australia. As a result, upon
completion of the acquisition, Michigan National Corporation and its
subsidiaries, including MNB and its affiliate, Independence One Capital
Management Corporation, would become direct or indirect subsidiaries of NAB.
The agreement requires approval of the shareholders of Michigan National
Corporation, as well as the receipt of various regulatory approvals. A
shareholder meeting for Michigan National Corporation will be held as soon
as practicable, and it is anticipated that the merger will be completed in
the third or fourth quarter of 1995. It is also anticipated that operations
will continue to be conducted under the Michigan National Corporation and
Michigan National Bank names.
Under provisions of the Investment Company Act of 1940, completion of the
acquisition would result in an assignment, and termination, of the Trust's
current investment advisory contract with MNB with respect to each of the
investment portfolios ("Funds") that comprise the Trust. Accordingly, prior
to such completion, the Board of Trustees of the trust will meet to consider
matters relating to the continuation of investment advisory services to the
Trust. As soon as practicable after the Trustees' decision on these
matters, a meeting of shareholders of each Fund will be held for the purpose
of voting on a new investment advisory contract. MNB remains committed to
providing quality professional services to the Trust, and does not
anticipate that these events will result in any disruption to the Trust, the
Funds, and their shareholders.
February 28, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
G01036-01 (2/95)
