SIGNET SELECT FUNDS
INVESTMENT SHARES
Supplement to Combined Prospectus dated November 30, 1993
1. Please replace the sections entitled "Acceptable Investments" and "Common
Stocks" under the heading "Value Equity Fund" on page 11 of the prospectus
with the following:
"Acceptable Investments. The Fund pursues its investment
objective by investing in common stocks of large, medium and
small capitalization companies which are either listed on
the New York or American Stock Exchange or trade in the over-
the-counter markets. The Fund's investment approach is
based upon the conviction that, over the long term, the
economy will continue to expand and develop and that this
economic growth will be reflected in the growth of the
revenues and earnings of publicly held corporations. The
securities in which the Fund invests include, but are not
limited to, the following securities.
Common Stocks. The Fund invests primarily in common stocks
of companies selected by the Fund's investment adviser on
the basis of investment research techniques, including
assessment of earnings and dividend growth prospects of the
companies. Factors such as product position, market share,
potential earnings growth, or asset values will be
considered by the investment adviser. At least 65% of the
Fund's portfolio will be invested in common stocks, unless
it is in a defensive position."
2.Please insert the following as the final two sections under the heading "Value
Equity Fund" which begins on page 11 and continues on page 12 of the
prospectus. In addition, add the headings "Portfolio Turnover" and
"Investment Considerations" to the Table of Contents.
"Portfolio Turnover. Although the Fund does not intend to
invest for the purpose of seeking short-term profits,
securities in its portfolio will be sold whenever the
Adviser believes it is appropriate to do so in light of the
Fund's investment objective, without regard to the length of
time a particular security may have been held. The Adviser
anticipates that the Fund's annual portfolio turnover rate
for the 1994 and subsequent fiscal years will be
significantly higher than the Fund's turnover rates of 67%
and 38% recorded in its 1993 and 1992 fiscal years. A high
portfolio turnover rate may lead to increased costs and may
also result in higher taxes paid by the Fund's shareholders.
Investment Considerations. As with other mutual funds that
invest primarily in equity securities, the Fund is subject
to market risks. That is, the possibility exists that
common stocks will decline over short or even extended
periods of time. The United States equity market tends to
be cyclical, experiencing both periods when stock prices
generally increase and periods when stock prices generally
decrease. However, because the Fund invests a portion of
its assets in small capitalization stocks, there are some
additional risk factors associated with investments in the
Fund. In particular, stocks in the small capitalization
sector of the United States equity market have historically
been more volatile in price than larger capitalization
stocks, such as those included in the Standard & Poor's 500
Composite Stock Price Index ("Standard & Poor's 500 Index").
This is because, among other things, small companies have
less certain growth prospects than larger companies; have a
lower degree of liquidity in the equity market; and tend to
have a greater sensitivity to changing economic conditions."
July 22, 1994
FEDERATED SECURITIES CORP.
Distributor
SIGNET SELECT FUNDS
TRUST SHARES
Supplement to Combined Prospectus dated November 30, 1993
1. Please replace the sections entitled "Acceptable Investments" and "Common
Stocks" under the heading "Value Equity Fund" on page 10 of the prospectus
with the following:
"Acceptable Investments. The Fund pursues its investment
objective by investing in common stocks of large, medium and
small capitalization companies which are listed either on
the New York or American Stock Exchange or trade in the over-
the-counter markets. The Fund's investment approach is
based upon the conviction that, over the long term, the
economy will continue to expand and develop and that this
economic growth will be reflected in the growth of the
revenues and earnings of publicly held corporations. The
securities in which the Fund invests include, but are not
limited to, the following securities.
Common Stocks. The Fund invests primarily in common stocks
of companies selected by the Fund's investment adviser on
the basis of investment research techniques, including
assessment of earnings and dividend growth prospects of the
companies. Factors such as product position, market share,
potential earnings growth, or asset values will be
considered by the investment adviser. At least 65% of the
Fund's portfolio will be invested in common stocks, unless
it is in a defensive position."
2.Please insert the following as the final two sections under the heading "Value
Equity Fund" which begins on page 10 and continues on page 11 of the
prospectus. In addition, add the headings "Portfolio Turnover" and
"Investment Considerations" to the Table of Contents.
"Portfolio Turnover. Although the Fund does not intend to
invest for the purpose of seeking short-term profits,
securities in its portfolio will be sold whenever the
Adviser believes it is appropriate to do so in light of the
Fund's investment objective, without regard to the length of
time a particular security may have been held. The Adviser
anticipates that the Fund's annual portfolio turnover rate
for the 1994 and subsequent fiscal years will be
significantly higher than the Fund's turnover rates of 67%
and 38% recorded in its 1993 and 1992 fiscal years. A high
portfolio turnover rate may lead to increased costs and may
also result in higher taxes paid by the Fund's shareholders.
Investment Considerations. As with other mutual funds that
invest primarily in equity securities, the Fund is subject
to market risks. That is, the possibility exists that
common stocks will decline over short or even extended
periods of time. The United States equity market tends to
be cyclical, experiencing both periods when stock prices
generally increase and periods when stock prices generally
decrease. However, because the Fund invests a portion of
its assets in small capitalization stocks, there are some
additional risk factors associated with investments in the
Fund. In particular, stocks in the small capitalization
sector of the United States equity market have historically
been more volatile in price than larger capitalization
stocks, such as those included in the Standard & Poor's 500
Composite Stock Price Index ("Standard & Poor's 500 Index").
This is because, among other things, small companies have
less certain growth prospects than larger companies; have a
lower degree of liquidity in the equity market; and tend to
have a greater sensitivity to changing economic conditions."
July 22, 1994
FEDERATED SECURITIES CORP.
Distributor
