% Crop Marks
.5 setlinewidth
/markl 9 def
/whitel 4 def
/top 72 def
/bottom 122 def
/left 45 def
/right 45 def
%horizontals
left markl sub whitel sub wp$y wp$top sub moveto markl 0 rlineto
wp$x right sub left sub whitel 2 mul add 0 rmoveto markl 0
rlineto
left markl sub whitel sub bottom moveto markl 0 rlineto
wp$x right sub left sub whitel 2 mul add 0 rmoveto markl 0
rlineto
%verticals
left bottom markl sub whitel sub moveto 0 markl rlineto
0 wp$y wp$top sub bottom sub whitel 2 mul add rmoveto 0 markl
rlineto
wp$x right sub bottom markl sub whitel sub moveto 0 markl
rlineto
0 wp$y wp$top sub bottom sub whitel 2 mul add rmoveto 0 markl
rlineto
stroke
MICHIGAN MUNICIPAL INCOME FUND
(A PORTFOLIO OF MUNICIPAL SECURITIES INCOME TRUST)
Supplement to Prospectus dated October 31, 1993
1. Effective June 1, 1994, the name of the Fund will be
changed to Michigan Intermediate Municipal Trust.
2. Please insert the following section after the section
entitled "General Information" on page 3 of the prospectus
and add the title "Liberty Family of Funds" to the Table
of Contents following the section entitled "General
Information":
Liberty Family of Funds
This Fund is a member of a family of mutual funds,
collectively known as the Liberty Family of Funds.
The other funds in the Liberty Family of Funds are:
o American Leaders Fund, Inc., providing growth
of capital and income through high-quality
stocks;
o Capital Growth Fund, providing appreciation of
capital primarily through equity securities;
o Fund for U.S. Government Securities, Inc.,
providing current income through long-term U.S.
government securities;
o International Equity Fund, providing long-term
capital growth and income through international
securities;
o International Income Fund, providing a high
level of current income consistent with prudent
investment risk through high-quality debt
securities denominated primarily in foreign
currencies;
o Liberty Equity Income Fund, Inc., providing
above-average income and capital appreciation
through income producing equity securities;
o Liberty High Income Bond Fund, Inc., providing
high current income through high-yielding, lower-
rated corporate bonds;
o Liberty Municipal Securities Fund, Inc.,
providing a high level of current income exempt
from federal regular income tax through
municipal bonds;
o Liberty U.S. Government Money Market Trust,
providing current income consistent with
stability of principal through high-quality U.S.
government securities;
o Liberty Utility Fund, Inc., providing current
income and long-term growth of income, primarily
through electric, gas, and communications
utilities;
o Limited Term Fund, providing a high level of
current income consistent with minimum
fluctuation in principal value through
investment grade securities;
o Limited Term Municipal Fund, providing a high
level of current income exempt from federal
regular income tax consistent with the
preservation of principal, primarily limited to
municipal securities;
o Pennsylvania Municipal Income Fund, providing
current income exempt from federal regular
income tax and the personal income taxes imposed
by the Commonwealth of Pennsylvania, primarily
through Pennsylvania municipal securities;
o Strategic Income Fund, providing a high level
of current income, primarily through domestic
and foreign corporate debt obligations;
o Tax-Free Instruments Trust, providing current
income consistent with stability of principal
and exempt from federal income tax, through high-
quality, short-term municipal securities; and
o World Utility Fund, providing total return
through securities issued by domestic and
foreign companies in the utilities industries.
Prospectuses for these funds are available by
writing to Federated Securities Corp.
Each of the funds may also invest in certain other
types of securities as described in each fund's
prospectus.
The Liberty Family of Funds provides flexibility and
diversification for an investor's long-term
investment planning. It enables an investor to meet
the challenges of changing market conditions by
offering convenient exchange privileges which give
access to various investment vehicles and by
providing the investment services of a proven,
professional investment adviser.
3. Please delete the sales charge table on page 8 of the
prospectus in the section entitled "What Shares Cost" and
replace it with the following:
Sales Charge as Sales Charge
as
a Percentage of a Percentage
of
Amount of Transaction Public
Offering Price Net Amount Invested
Less than $50,000 3.00% 3.09%
$50,00 but less than $100,000 2.50%
2.56%
$100,000 but less than $250,000 2.00%
2.04%
$250,000 but less than $500,000 1.50%
1.52%
$500,000 but less than $1 million 1.00%
1.01%
$1 million or greater 0.00% 0.00%
4. Please add the following as the final two sentences of the
paragraph under the section entitled "Dealer Concession,"
which appears on page 8 of the prospectus:
On purchases of $1 million or more, the investor
pays no sales charge; however, the distributor will
make twelve monthly payments to the dealer totaling
0.25% of the public offering price over the first
year following the purchase. Such payments are based
on the original purchase price of the shares
outstanding at each month end.
5. Please delete the last sentence of the section entitled
"Purchases With Proceeds From Redemption of Unaffiliated
Investment Companies," which appears on page 9 of the
prospectus, which states, "Federated Securities Corp. will
offer to pay dealers an amount equal to .50 of 1% of the
net asset value of shares purchased by their clients or
customers in this manner."
6. Please replace the section entitled "Exchange Privilege"
on page 10 of the prospectus with the following:
Exchange Privilege
Shareholders may exchange all or some of their
shares for Class A Shares in other funds in the
Liberty Family of Funds. Neither the Fund nor any
of the funds in the Liberty Family of Funds
imposes any additional fees on exchanges.
Requirements for Exchange
Shareholders using this privilege must exchange
shares having a net asset value equal to the
minimum investment requirements of the fund into
which the exchange is being made. Before the
exchange, the shareholder must receive the
prospectus of the fund into which the exchange is
being made. This privilege is available to
shareholders resident in any state in which the
fund shares being acquired may be sold. Upon
receipt of proper instructions and required
supporting documents, shares submitted for
exchange are redeemed and the proceeds invested in
shares of the other fund. The exchange privilege
may be modified or terminated at any time.
Shareholders will be notified of the modification
or termination of the exchange privilege.
Further information on the exchange privilege and
prospectuses for the Liberty Family of Funds are
available by contacting the Fund.
Tax Consequences
An exercise of the exchange privilege is treated
as a sale for federal income tax purposes.
Depending upon circumstances, a capital gain or
loss may be realized.
Making an Exchange
Instructions for exchanges for the Liberty Family
of Funds may be given in writing or by telephone.
Written instructions may require a signature
guarantee. Shareholders of the Fund may have
difficulty in making exchanges by telephone
through brokers and other financial institutions
during times of drastic economic or market
changes. If a shareholder cannot contact his
broker or financial institution by telephone, it
is recommended that an exchange request be made in
writing and sent by overnight mail to Federated
Services Company, State Street Bank and Trust
Company, P.O. Box 8604, Boston, Massachusetts
02266-8604.
Telephone Instructions. Telephone instructions
made by the investor may be carried out only if a
telephone authorization form completed by the
investor is on file with the Fund. If the
instructions are given by a broker, a telephone
authorization form completed by the broker must be
on file with the Fund. Shares may be exchanged
between two funds by telephone only if the two
funds have identical shareholder registrations.
Telephone exchange instructions may be recorded.
If reasonable procedures are not followed by the
Fund, it may be liable for losses due to
unauthorized or fraudulent telephone
instructions.
Any shares held in certificate form cannot be
exchanged by telephone, but must be forwarded to
Federated Services Company, State Street Bank and
Trust Company, P.O. Box 8604, Boston,
Massachusetts 02266-8604, and deposited to the
shareholder's account before being exchanged.
Telephone instructions will be processed by 4:00
p.m. (Eastern Time) and must be received by the
Fund before that time for shares to be exchanged
the same day. Shareholders exchanging into a fund
will not receive any dividend that is payable to
shareholders of record on that date. This
privilege may be modified or terminated at any
time.
7. Please delete the first paragraph of the section entitled
"Redemption Fee" on page 12 of the prospectus and replace
it with the following:
Shareholders who purchased shares with the proceeds
of a redemption of shares of a mutual fund sold with
a sales charge and not distributed by Federated
Securities Corp. prior to June 1, 1994, will be
charged a contingent deferred sales charge by the
Fund's distributor of .50 of 1% for redemptions made
within one year of purchase. Purchases under the
program made after that date will not be subject to
any type of contingent deferred sales charge.
8. Please insert the following as the final paragraph under
the section entitled "Adviser's Background" on page 14 of
the prospectus and add the sub-heading "Other Payments to
Financial Institutions" to the Table of Contents after the
sub-heading "Adviser's Background."
Other Payments to Financial Institutions. The
distributor may offer to pay a fee from its own
assets to financial institutions as financial
assistance for providing substantial marketing
and sales support. The support may include
sponsoring sales, educational and training
seminars for their employees, providing sales
literature, and engineering computer software
programs that emphasize the attributes of the
Fund. Such assistance will be predicated upon
the amount of Shares the financial institution
sells or may sell, and/or upon the type and
nature of sales or marketing support furnished by
the financial institution. Any payments made by
the distributor may be reimbursed by the Fund's
investment adviser or its affiliates.
9. Please insert the following after the section entitled
"Administrative Services" on page 14 of the prospectus and
add the sub-heading "Shareholder Services Plan" to the
Table of Contents after the sub-heading "Administrative
Services.":
Shareholder Services Plan. The Fund has adopted a
Shareholder Services Plan (the "Services Plan")
under which it may make payments up to 0.25 of 1% of
the average daily net asset value of the Fund to
obtain certain personal services for shareholders
and the maintenance of shareholder accounts
("shareholder services"). The Fund has entered into
a Shareholder Services Agreement with Federated
Shareholder Services, a subsidiary of Federated
Investors, under which Federated Shareholder
Services will either perform shareholder services
directly or will select financial institutions to
perform shareholder services. Financial
institutions will receive fees based upon shares
owned by their clients or customers. The schedules
of such fees and the basis upon which such fees will
be paid will be determined from time to time by the
Fund and Federated Shareholder Services.
- OVER -
10. Please delete in its entirety the section entitled
"Administrative Services" on page 14 of the prospectus and
replace with the following:
Administrative Services. Federated
Administrative Services, a subsidiary of
Federated Investors, provides administrative
personnel and services (including certain legal
and financial reporting services) necessary to
operate the Trust. Federated Administrative
Services provides these at an annual rate which
relates to the average aggregate daily net assets
of all funds advised by subsidiaries of Federated
Investors ("Federated Funds") as specified below:
Average Aggregate Daily
Net Assets
Maximum Administrative Fee of the
Federated Funds
0.15 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.10 of 1% on the next $250 million
0.075% of 1% on assets in excess of $750
million
The administrative fee received during any fiscal
year shall be at least $125,000 per portfolio and
$30,000 per each additional class of shares.
Federated Administrative Services may choose
voluntarily to waive a portion of its fee.
FEDERATED SECURITIES CORP.
Distributor
003994A(5/94)
PENNSYLVANIA MUNICIPAL INCOME FUND
(A PORTFOLIO OF MUNICIPAL SECURITIES INCOME TRUST)
Investment Shares
Supplement to Prospectus dated October 31, 1993
1.In your prospectus and Statement of Additional Information, please change
all references of "Investment Shares" to "Class A Shares."
2.Please insert the following section after the section entitled "General
Information" on page 3 of the prospectus and add the title "Liberty Family of
Funds" to the Table of Contents following the section entitled
"General Information":
Liberty Family of Funds
This Fund is a member of a family of mutual funds, collectively
known as the Liberty Family of Funds. The other funds in the
Liberty Family of Funds are:
o American Leaders Fund, Inc., providing growth of capital and
income through high-quality stocks;
o Capital Growth Fund, providing appreciation of capital
primarily through equity securities;
o Fund for U.S. Government Securities, Inc., providing current
income through long-term U.S. government securities;
o International Equity Fund, providing long-term capital growth
and income through international securities;
o International Income Fund, providing a high level of current
income consistent with prudent investment risk through high-
quality debt securities denominated primarily in foreign
currencies;
o Liberty Equity Income Fund, Inc., providing above-average
income and capital appreciation through income producing equity
securities;
o Liberty High Income Bond Fund, Inc., providing high current
income through high-yielding, lower-rated corporate bonds;
o Liberty Municipal Securities Fund, Inc., providing a high
level of current income exempt from federal regular income tax
through municipal bonds;
o Liberty U.S. Government Money Market Trust, providing current
income consistent with stability of principal through high-
quality U.S. government securities;
o Liberty Utility Fund, Inc., providing current income and long-
term growth of income, primarily through electric, gas, and
communications utilities;
o Limited Term Fund, providing a high level of current income
consistent with minimum fluctuation in principal value through
investment grade securities;
o Limited Term Municipal Fund, providing a high level of current
income exempt from federal regular income tax consistent with
the preservation of principal, primarily limited to municipal
securities;
o Michigan Intermediate Municipal Trust, providing current
income exempt from federal regular income tax and the personal
income taxes imposed by the state of Michigan and Michigan
municipalities, primarily through Michigan municipal securities;
o Strategic Income Fund, providing a high level of current
income , primarily through domestic and foreign corporate debt
obligations;
o Tax-Free Instruments Trust, providing current income
consistent with stability of principal and exempt from federal
income tax, through high-quality, short-term municipal
securities; and
o World Utility Fund, providing total return through securities
issued by domestic and foreign companies in the utilities
industries.
Prospectuses for these funds are available by writing to
Federated Securities Corp.
Each of the funds may also invest in certain other types of
securities as described in each fund's prospectus.
The Liberty Family of Funds provides flexibility and
diversification for an investor's long-term investment planning.
It enables an investor to meet the challenges of changing market
conditions by offering convenient exchange privileges which give
access to various investment vehicles and by providing the
services of a proven, professional investment adviser.
3.Please delete the last sentence of the section entitled "Purchases With
Proceeds From Redemption of Unaffiliated Investment Companies," which appears
on page 10 of the prospectus, which states, "Federated
Securities Corp. will offer to pay dealers an amount equal to
.50 of 1% of the net asset value of Shares purchased by their
clients or customers in this manner."
4.Please replace the section entitled "Exchange Privilege" on page 11 of the
prospectus with the following:
Exchange Privilege
Class A shareholders may exchange all or some of their Shares
for Class A Shares in other funds in the Liberty Family of
Funds. Neither the Fund nor any of the funds in the Liberty
Family of Funds imposes any additional fees on exchanges.
Requirements for Exchange
Shareholders using this privilege must exchange Shares having a
net asset value equal to the minimum investment requirements of
the fund into which the exchange is being made. Before the
exchange, the shareholder must receive the prospectus of the
fund into which the exchange is being made. This privilege is
available to shareholders resident in any state in which the
fund shares being acquired may be sold. Upon receipt of proper
instructions and required supporting documents, Shares submitted
for exchange are redeemed and the proceeds invested in shares of
the other fund. The exchange privilege may be modified or
terminated at any time. Shareholders will be notified of the
modification or termination of the exchange privilege.
Further information on the exchange privilege and prospectuses
for the Liberty Family of Funds are available by contacting the
Fund.
Tax Consequences
An exercise of the exchange privilege is treated as a sale for
federal income tax purposes. Depending upon circumstances, a
capital gain or loss may be realized.
Making an Exchange
Instructions for exchanges for the Liberty Family of Funds may
be given in writing or by telephone. Written instructions may
require a signature guarantee. Shareholders of the Fund may
have difficulty in making exchanges by telephone through brokers
and other financial institutions during times of drastic
economic or market changes. If a shareholder cannot contact his
broker or financial institution by telephone, it is recommended
that an exchange request be made in writing and sent by
overnight mail to Federated Services Company, State Street Bank
and Trust Company, P.O. Box 8604, Boston, Massachusetts 02266-
8604.
Telephone Instructions. Telephone instructions made by the
investor may be carried out only if a telephone authorization
form completed by the investor is on file with the Fund. If the
instructions are given by a broker, a telephone authorization
form completed by the broker must be on file with the Fund.
Shares may be exchanged between two funds by telephone only if
the two funds have identical shareholder registrations.
Telephone exchange instructions may be recorded. If reasonable
procedures are not followed by the Fund, it may be liable for
losses due to unauthorized or fraudulent telephone
instructions.
Any Shares held in certificate form cannot be exchanged by
telephone, but must be forwarded to Federated Services Company,
State Street Bank and Trust Company, P.O. Box 8604, Boston,
Massachusetts 02266-8604, and deposited to the shareholder's
account before being exchanged. Telephone instructions will be
processed by 4:00 p.m. (Eastern Time) and must be received by
the Fund before that time for Shares to be exchanged the same
day. Shareholders exchanging into a fund will not receive any
dividend that is payable to shareholders of the record on that
date. This privilege may be modified or terminated at any time.
5.Please delete the first sentence of the first paragraph of the section
entitled "Redemption Fee" on page 13 of the prospectus and replace it with the
following:
Shareholders who purchased Shares with the proceeds of a
redemption of shares of a mutual fund sold with a sales load and
not distributed by Federated Securities Corp. prior to June 1,
1994, will be charged a contingent deferred sales charge by the
Fund's distributor of .50 of 1% for redemptions made within one
year of purchase. Purchases under the program made after that
date will not be subject to any type of contingent deferred
sales charge.
- - OVER -
6.Please delete in its entirety the section entitled "Administrative Services"
on page 16 of the prospectus and replace with the following:
Administrative Services. Federated Administrative Services, a
subsidiary of Federated Investors, provides administrative
personnel and services (including certain legal and financial
reporting services) necessary to operate the Trust. Federated
Administrative Services provides these at an annual rate which
relates to the average aggregate daily net assets of all funds
advised by subsidiaries of Federated Investors ("Federated
Funds") as specified below:
Average Aggregate Daily
Net Assets
Maximum Administrative Fee
of the Federated Funds
0.15 of 1%on the first $250 mi
llion
0.125 of 1%on the next $250 mil
lion
0.10 of 1% on the next $250 mil
lion
0.075% of 1%on assets in exces
s of $750 million
The administrative fee received during any fiscal year shall be
at least $125,000 per portfolio and $30,000 per each additional
class of shares. Federated Administrative Services may choose
voluntarily to waive a portion of its fee.
May 31, 1994
FEDERATED SECURITIES CORP.
Distributor
003993A(5/94)
