INDEPENDENCE ONE MICHIGAN MUNICIPAL BOND FUND
(A Portfolio of Independence One Mutual Funds)
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SUPPLEMENT TO THE COMBINED PROSPECTUS DATED JUNE 30, 1997
Effective immediately, please be advised that the current investment
advisory fee waiver on the Fund will be reduced by 25 basis points.
Accordingly, please delete the "Summary of Fund Expenses" table on
page 3 of the prospectus and replace it with the following:
SUMMARY OF FUND EXPENSES
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<TABLE>
<CAPTION>
MICHIGAN
GOVERNMENT FIXED INCOME MUNICIPAL
SECURITIES FUND FUND BOND FUND
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on Purchases
(as a percentage of offering price)................................... None None None
Maximum Sales Charge Imposed on Reinvested Dividends
(as a percentage of offering price)................................... None None None
Contingent Deferred Sales Charge (as a percentage of original purchase
price or redemption proceeds, as applicable).......................... None None None
Redemption Fee (as a percentage of amount redeemed, if applicable)...... None None None
Exchange Fee............................................................ None None None
<CAPTION>
ANNUAL FUND OPERATING EXPENSES
(As a percentage of average net assets)
<S> <C> <C> <C>
Management Fees (after waiver) (1)...................................... 0.25% 0.25% 0.25%
12b-1 Fees.............................................................. None None None
Total Other Expenses (after waiver) (2)................................. 0.33% 0.31% 0.64%
Total Fund Operating Expenses (after waivers) (3)............... 0.58% 0.56% 0.89%
</TABLE>
(1) The management fees for Government Securities Fund, Fixed Income
Fund and Michigan Municipal Bond Fund have been reduced to reflect
the anticipated voluntary waiver by the Adviser. The Adviser can
terminate this voluntary waiver at any time at its sole
discretion. The maximum management fee for Government Securities
Fund is 0.70%. The maximum management fee for the Fixed Income
Fund and Michigan Municipal Bond Fund is 0.75%.
(2) Total Other Expenses for Michigan Municipal Bond Fund have been
reduced to reflect the voluntary waiver of a portion of the
administrative fee. The administrator can terminate this voluntary
waiver at any time at its sole discretion.
(3) The Total Fund Operating Expenses in the table above for
Government Securities Fund, Fixed Income Fund and Michigan
Municipal Bond Fund are based on expenses expected to be incurred
during the fiscal year ending April 30, 1998, and are expected to
be 1.03%, 1.06% and 1.48%, respectively, absent the voluntary
waivers described in Notes 1 and 2 above. During the course of
this period, expenses may be more or less than the amounts shown.
The Total Fund Operating Expenses for Government Securities Fund,
Fixed Income Fund and Michigan Municipal Bond Fund for the fiscal
year ended April 30, 1997 were 0.57%, 0.55% and 0.70%,
respectively. The Total Fund Operating Expenses for Government
Securities Fund and Fixed Income Fund for the fiscal year ended
April 30, 1997 were 1.02% and 1.05%, respectively, absent the
voluntary waiver of the management fee. The Total Fund Operating
Expenses for Michigan Municipal Bond Fund for the fiscal year
ended April 30, 1997 were 1.64% absent the voluntary waivers of
the management fee and administrative fee.
THE PURPOSE OF THIS TABLE IS TO ASSIST AN INVESTOR IN UNDERSTANDING THE
VARIOUS COSTS AND EXPENSES THAT A SHAREHOLDER OF THE FUNDS WILL BEAR, EITHER
DIRECTLY OR INDIRECTLY. FOR MORE COMPLETE DESCRIPTIONS OF THE VARIOUS COSTS AND
EXPENSES, SEE "INVESTING IN THE FUNDS."
EXAMPLE 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.
<TABLE>
<CAPTION>
MICHIGAN
GOVERNMENT FIXED INCOME MUNICIPAL
SECURITIES FUND FUND BOND FUND
<S> <C> <C> <C>
1 Year................................................................ $6 $6 $9
3 Years............................................................... $19 $18 $28
5 Years............................................................... $32 $31 $49
10 Years.............................................................. $73 $70 $110
</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.
September 23, 1997
[FEDERATED LOGO]
Federated Securities Corp., Distributor
Cusip 453777856
G01184-15 (9/97) [RECYCLED LOGO]
