1933 Act File No. 33-36451
1940 Act File No. 811-6158
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
Pre-Effective Amendment No.
Post-Effective Amendment No. 6 X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 X
Amendment No. 9 X
SIGNET SELECT FUNDS
(Exact Name of Registrant as Specified in Charter)
Federated Investors Tower, Pittsburgh, Pennsylvania 15222-3779
(Address of Principal Executive Offices)
(412) 288-1900
(Registrant's Telephone Number)
John W. McGonigle, Esquire,
Federated Investors Tower,
Pittsburgh, Pennsylvania 15222-3779
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b)
on _________________ pursuant to paragraph (b)
X 60 days after filing pursuant to paragraph (a)
on pursuant to paragraph (a) of Rule 485.
Registrant has filed with the Securities and Exchange Commission a
declaration pursuant to Rule 24f-2 under the Investment Company Act of
1940, and:
X filed the Notice required by that Rule on November 15, 1993; or
intends to file the Notice required by that Rule on or about
____________; or
during the most recent fiscal year did not sell any securities pursuant
to Rule 24f-2 under the Investment Company Act of 1940, and, pursuant to
Rule 24f-2(b)(2), need not file the Notice.
Copies to:
Thomas J. Donnelly, Esquire Charles H. Morin, Esquire
Houston, Houston & Donnelly Dickstein, Shapiro & Morin
2510 Centre City Tower 2101 L Street, N.W.
650 Smithfield Street Washington, D.C. 20037
Pittsburgh, Pennsylvania 15222
CROSS-REFERENCE SHEET
This Amendment to the Registration Statement of SIGNET SELECT FUNDS,
which is comprised of seven portfolios, (1) U.S. Government Income Fund (2)
Maryland Municipal Bond Fund, (3) Money Market Fund, (4) Treasury Money
Market Fund, (5) Value Equity Fund, and (6) Virginia Municipal Bond Fund,
all of which are offered in two separate classes of shares known as
Investment Shares and Trust Shares, and (7) Tax-Free Money Market Fund,
which does not currently offer separate classes of shares, relates only to
Tax-Free Money Market Fund, and is comprised of the following:
PART A. INFORMATION REQUIRED IN A PROSPECTUS.
Prospectus Heading
(Rule 404(c) Cross Reference)
Item 1. Cover Page (1-7) Cover Page.
Item 2. Synopsis (1-7) Summary of Fund Expenses.
Item 3. Condensed Financial
Information (1-6) Financial Highlights.
Item 4. General Description of
Registrant (1-7) General Information; Investment
Objective; Investment Policies;
Investment Limitations.
Item 5. Management of the Fund (1-7) Signet Select Funds Information;
(1-7) Management of the Trust; (1-7)
Distribution of Shares; (1-6)
Distribution Plan (Investment Shares
only); (7) Distribution Plan; (1-7)
Administration of the Fund; (1-6)
Expenses of the Fund and Shares; (7)
Expenses of the Fund.
Item 6. Capital Stock and Other
Securities (1-7) Dividends; Capital Gains;
Shareholder Information;
Voting Rights; Massachusetts
Partnership Law; Tax Information;
Federal Income Tax.
Item 7. Purchase of Securities Being
Offered (1-7) Net Asset Value; (1-6) Investing
in Shares; (7) Investing in the Fund;
(1-7) Share Purchases; (1-7) Minimum
Investment Required; (1-7) What Shares
Cost; (1-7) Certificates and
Confirmations; (1-6) Exchange
Privilege (Investment Shares Only);
(7) Exchange Privilege.
Item 8. Redemption or Repurchase (1-7) Redeeming Shares; (1-7) By
Telephone; (1-7) By Mail; (1-6)
Redemption Fee (Investment Shares
Only); (7) Contingent Deferred Sales
Charge; (1-6) Redemption Before
Purchase Instruments Clear; (1-7)
Systematic Withdrawal Program
(Investment Shares only); (7)
Systematic Withdrawal Program.
Item 9. Pending Legal Proceedings None.
PART B. INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION.
Item 10. Cover Page (1-7) Cover Page.
Item 11. Table of Contents (1-7) Table of Contents.
Item 12. General Information and
History (1-7) General Information About the
Trust.
Item 13. Investment Objectives and
Policies (1-7) Investment Objective and
Policies.
Item 14. Management of the Fund (1-7) Signet Select Funds Management.
Item 15. Control Persons and Principal
Holders of Securities Not Applicable.
Item 16. Investment Advisory and Other
Services (1-7) Investment Advisory Services;
Administrative Services.
Item 17. Brokerage Allocation (1-6) Brokerage Transactions.
Item 18. Capital Stock and Other
Securities Not applicable.
Item 19. Purchase, Redemption and
Pricing of Securities Being
Offered (1-6) Purchasing Shares; (1-7)
Determining Net Asset Value; (1-6)
Redeeming Shares; (1-6) Exchange
Privilege (Investment Shares only).
Item 20. Tax Status (1-7) Tax Status.
Item 21. Underwriters (1-6) Distribution Plan (Investment
Shares only); (7) Distribution Plan.
Item 22. Calculation of Performance
Data (1-7) Performance Comparisons.
Item 23. Financial Statements (1-6) Financial Statements; (7) To be
filed by amendment.
Signet Select Tax-Free Money Market
Fund
(A Portfolio of Signet Select Funds)
Prospectus
The shares of Signet Select Tax-Free Money Market Fund (the
"Fund") offered by this prospectus represent interests in a
non-diversified portfolio of Signet Select Funds (the
"Trust"), an open-end management investment company (a mutual
fund). The Fund invests in municipal securities to achieve
current income exempt from federal income tax consistent with
stability of principal and liquidity.
The shares offered by this prospectus are not deposits or
obligations of Signet Trust Company or Signet Bank, are not
endorsed or guaranteed by Signet Trust Company or Signet Bank,
and are not insured or guaranteed by the U.S. government, the
Federal Deposit Insurance Corporation, the Federal Reserve
Board, or any other government agency. Investment in these
shares involves investment risks including possible loss of
principal. The Fund attempts to maintain a stable net asset
value of $1.00 per share; there can be no assurance that the
Fund will be able to do so.
This prospectus contains the information you should read and
know before you invest in the Fund. Keep this prospectus for
future reference.
The Fund has also filed a Statement of Additional Information
dated June __, 1994, with the Securities and Exchange
Commission. The information contained in the Statement of
Additional Information is incorporated by reference into this
prospectus. You may request a copy of the Statement of
Additional Information free of charge, obtain other
information, or make inquiries about the Fund by writing to
the Fund or calling toll-free 1-800-723-9512.
Signet Asset Management, a division of Signet Trust Company,
is the investment adviser to the Fund. The Fund is
distributed by Federated Securities Corp., which is not
affiliated with Signet Trust Company.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
Prospectus dated June __, 1994
Summary of Fund Expenses 1
General Information 2
Investment Information 2
Investment Objective 2
Investment Policies 2
Investment Risks 4
Non-Diversification 5
Investment Limitations 5
Regulatory Compliance 5
Signet Select Funds Information 5
Management of the Trust 5
Distribution of the Fund 6
Administration of the Fund 6
Expenses of the Fund 7
Net Asset Value 7
Investing in the Fund 7
Share Purchases 7
Systematic Investment Program 8
Minimum Investment Required 8
What Shares Cost 8
Certificates and Confirmations 8
Dividends 8
Capital Gains 9
Exchange Privilege 9
Redeeming Shares 10
Contingent Deferred Sales Charge 11
Systematic Withdrawal Program 11
Accounts with Low Balances 12
Shareholder Information 12
Voting Rights 12
Massachusetts Partnership Law 12
Effect of Banking Laws 12
Tax Information 13
Federal Income Tax 13
State and Local Taxes 13
Performance Information 13
Addresses 15
Summary of Fund Expenses
Shareholder Transaction Expenses
Maximum Sales Load Imposed on Purchases (as a percentage of offering price)
None
Maximum Sales Load Imposed on Reinvested Dividends (as a
percentage of offering price)
None
Contingent Deferred Sales Charge (as a percentage of original purchase price or
redemption
proceeds, as applicable) (1)
___%
Redemption Fee (as a percentage of amount redeemed, if
applicable)
None
Exchange Fee
None
Annual Fund Operating Expenses
(As a percentage of projected average net assets)
Management Fee
___%
12b-1 Fees(after waiver) (2)
___%
Total Other Expenses.
___%
Total Operating Expenses*
___%
(1) A contingent deferred sales charge of ___% will be imposed only in limited
circumstances in which the shares being redeemed were acquired in exchange
for Investment Shares in those Signet Select Funds which charge a
contingent deferred sales charge. The contingent deferred sales charge is
2.00% of the lesser of the original purchase price or the net asset value
of the shares redeemed within five years of the purchase date. For a more
complete description, see "Redeeming Shares."
(2) As of the date of this prospectus, the Fund is not paying or accruing 12b-1
fees. The Fund will not accrue or pay 12b-1 fees until a separate class of
shares has been created for certain institutional investors. The Fund can
pay up to ___% as a 12b-1 fee to the distributor.
*Total Operating Expenses are based on average expenses expected to be incurred
during the fiscal year ending September 30, 1994. During the course of this
period, expenses may be more or less than the average amount shown.
The purpose of this table is to assist
an investor in understanding the various costs and expenses that a
shareholder of shares
of the Fund will bear, either directly or indirectly. For more complete
descriptions of
the various costs and expenses, see "Investing in the Fund" and "Signet
Select Funds
Information."
EXAMPLE 1 year 3 years
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. $ __ $ __
The above example should not
be considered a representation of past or future expenses. Actual expenses
may be
greater or less than those shown. This example is based on estimated data
for the
Fund's fiscal year ending September 30, 1994.
General Information
The Trust was established as a Massachusetts business trust
under a Declaration of Trust dated June 20, 1990. The
Declaration of Trust permits the Trust to offer separate
series of shares of beneficial interest representing interests
in separate portfolios of securities. The shares in any one
portfolio may be offered in separate classes. With respect to
this Fund, as of the date of this prospectus, the Board of
Trustees (the "Board" or the "Trustees") has not established
separate classes of shares. The Fund is designed for
institutional and retail customers of Signet Bank and its
affiliates as a convenient means of accumulating an interest
in a professionally managed, non-diversified portfolio
investing primarily in short-term municipal securities. The
Trust may not be a suitable investment for retirement plans
because it invests in municipal securities. A minimum initial
investment of $1,000 is required.
The Fund attempts to stabilize the value of a share at $1.00.
Shares are currently sold and redeemed at that price.
Investment Information
Investment Objective
The investment objective of the Fund is current income exempt
from federal income tax consistent with stability of principal
and liquidity. This investment objective cannot be changed
without shareholder approval. While there is no assurance that
the Fund will achieve its investment objective, it endeavors
to do so by following the investment policies described in
this prospectus.
Investment Policies
The Fund pursues its investment objective by investing in a
portfolio of municipal securities (as defined below) maturing
in 13 months or less. As a matter of investment policy, which
cannot be changed without shareholder approval, at least 80%
of the Fund's annual interest income will be exempt from
federal income tax. The average maturity of the securities in
the Fund's portfolio, computed on a dollar-weighted basis,
will be 90 days or less. Unless indicated otherwise,
investment policies may be changed by the Trustees without
shareholder approval. Shareholders will be notified before any
material change in these policies becomes effective.
Acceptable Investments. The Fund invests primarily in debt
obligations issued by or on behalf of states, territories, and
possessions of the United States, including the District of
Columbia, and any political subdivision or financing authority
of any of these, the income from which is, in the opinion of
qualified legal counsel, exempt from federal income tax
("Municipal Securities"). Examples of Municipal Securities
include, but are not limited to:
. tax and revenue anticipation notes ("TRANs") issued to finance
working capital needs in anticipation of receiving taxes or
other revenues;
. bond anticipation notes ("BANs") that are intended to be
refinanced through a later issuance of longer-term bonds;
. municipal commercial paper and other short-term notes;
. variable rate demand notes;
. municipal bonds (including bonds having serial maturities and
pre-refunded bonds) and leases;
. construction loan notes insured by the Federal Housing
Administration and financed by the Federal or Government
National Mortgage Associations; and
. participation, trust, and partnership interests in any of the
foregoing obligations.
Variable Rate Demand Notes. Variable rate demand notes are
long-term debt instruments that have variable or floating interest
rates and provide the Fund with the right to tender the security
for repurchase at its stated principal amount plus accrued
interest. Such securities typically bear interest at a rate that
is intended to cause the securities to trade at par. The interest
rate may float or be adjusted at regular intervals (ranging from
daily to annually), and is normally based on an interest index or
a stated percentage of a prime rate or another published rate.
Most variable rate demand notes allow the Fund to demand the
repurchase of the security on not more than seven days prior
notice. Other notes only permit the Fund to tender the security at
the time of each interest rate adjustment or at other fixed
intervals. See "Demand Features." The Fund treats variable rate
demand notes as maturing on the later of the date of the next
interest rate adjustment or the date on which the Fund may next
tender the security for repurchase.
Participation Interests. The Fund may purchase interests in
Municipal Securities from financial institutions such as
commercial and investment banks, savings and loan associations,
and insurance companies. These interests may take the form of
participations, beneficial interests in a trust, partnership
interests or any other form of indirect ownership that allows the
Fund to treat the income from the investment as exempt from
federal income tax. The Fund invests in these participation
interests in order to obtain credit enhancement or demand features
that would not be available through direct ownership of the
underlying Municipal Securities.
Municipal Leases. Municipal leases are obligations issued by state
and local governments or authorities to finance the acquisition of
equipment and facilities. They may take the form of a lease, an
installment purchase contract, a conditional sales contract, or a
participation interest in any of the above.
Ratings. The municipal securities in which the Fund invests
must be rated in one of the two highest short-term rating
categories by one or more nationally recognized statistical
rating organizations ("NRSROs"). An NRSRO's two highest rating
categories are determined without regard for sub-categories
and gradations. For example, securities rated SP-1+, SP-1, or
SP-2 by Standard & Poor's Corporation ("S&P"), MIG-1 or MIG-2
by Moody's Investors Service, Inc. ("Moody's"), or FIN-1+,
FIN-1, and FIN-2 by Fitch Investors Service, Inc. ("Fitch")
are all considered rated in one of the two highest short-term
rating categories. The Fund will follow applicable regulations
in determining whether a security rated by more than one NRSRO
can be treated as being in one of the two highest short-term
rating categories; currently, such securities must be rated by
two NRSROs in one of their two highest rating categories. See
"Regulatory Compliance."
Credit Enhancement. Certain of the Fund's acceptable
investments may be credit enhanced by a guaranty, letter of
credit, or insurance. The Fund typically evaluates the credit
quality and ratings of credit enhanced securities based upon
the financial condition and ratings of the party providing the
credit enhancement (the "credit enhancer"), rather than the
issuer. However, credit enhanced securities will not be
treated as having been issued by the credit enhancer for
diversification purposes, unless the Fund has invested more
than 10% of its assets in securities issued, guaranteed or
otherwise credit enhanced by the credit enhancer, in which
case the securities will be treated as having been issued by
both the issuer and the credit enhancer. The bankruptcy,
receivership, or default of the credit enhancer will adversely
affect the quality and marketability of the underlying
security.
Demand Features. The Fund may acquire securities that are
subject to puts and standby commitments ("demand features") to
purchase the securities at their principal amount (usually
with accrued interest) within a fixed period (usually seven
days) following a demand by the Fund. The demand feature may
be issued by the issuer of the underlying securities, a dealer
in the securities, or by another third party, and may not be
transferred separately from the underlying security. The Fund
uses these arrangements to provide the Fund with liquidity and
not to protect against changes in the market value of the
underlying securities. The bankruptcy, receivership, or
default by the issuer of the demand feature, or a default on
the underlying security or other event that terminates the
demand feature before its exercise, will adversely affect the
liquidity of the underlying security. Demand features that are
exercisable even after a payment default on the underlying
security may be treated as a form of credit enhancement.
When-Issued And Delayed Delivery Transactions. The Fund may
purchase securities on a when-issued or delayed delivery
basis. These transactions are arrangements in which the Fund
purchases securities with payment and delivery scheduled for a
future time. The seller's failure to complete these
transactions may cause the Fund to miss a price or yield
considered to be advantageous.
Restricted and Illiquid Securities. The Fund may invest in
restricted securities. Restricted securities are any
securities in which the Fund may invest pursuant to its
investment objective and policies but which are subject to
restrictions on resale under federal securities laws. Under
criteria established by the Trustees, certain restricted
securities are determined to be liquid. To the extent that
restricted securities are not determined to be liquid, the
Fund will limit their purchase, together with other illiquid
securities, to 10% of its net assets.
Temporary Investments. From time to time, when the investment
adviser determines that market conditions call for a temporary
defensive posture, the Fund may invest in tax-exempt or
taxable securities such as: obligations issued by or on behalf
of municipal or corporate issuers having the same quality
characteristics as described above; obligations issued or
guaranteed by the U.S. government, its agencies, or
instrumentalities; instruments issued by a U.S. branch of a
domestic bank or other deposit institutions having capital,
surplus, and undivided profits in excess of $100,000,000 at
the time of investment; and repurchase agreements
(arrangements in which the organization selling the Fund a
temporary investment agrees at the time of sale to repurchase
it at a mutually agreed upon time and price).
Although the Fund is permitted to make taxable, temporary
investments, there is no current intention to do so. However,
the interest from certain Municipal Securities is subject to
the federal alternative minimum tax, and up to 20% of the
Fund's income may be derived from such securities.
Municipal Securities
Municipal Securities are generally issued to finance public
works, such as airports, bridges, highways, housing,
hospitals, mass transportation projects, schools, streets, and
water and sewer works. They are also issued to repay
outstanding obligations, to raise funds for general operating
expenses, and to make loans to other public institutions and
facilities.
Municipal Securities include industrial development bonds
issued by or on behalf of public authorities to provide
financing aid to acquire sites or construct and equip
facilities for privately or publicly owned corporations. The
availability of this financing encourages these corporations
to locate within the sponsoring communities and thereby
increases local employment.
The two principal classifications of Municipal Securities are
"general obligation" and "revenue" bonds. General obligation
bonds are secured by the issuer's pledge of its full faith and
credit and taxing power for the payment of principal and
interest. Interest on and principal of revenue bonds, however,
are payable only from the revenue generated by the facility
financed by the bond or other specified sources of revenue.
Revenue bonds do not represent a pledge of credit or create
any debt of or charge against the general revenues of a
municipality or public authority. Industrial development bonds
are typically classified as revenue bonds.
Investment Risks
Yields on Municipal Securities depend on a variety of factors,
including: the general conditions of the short-term municipal
note market and of the municipal bond market; the size of the
particular offering; the maturity of the obligations; and the
rating of the issue. The ability of the Fund to achieve its
investment objective also depends on the continuing ability of
the issuers of Municipal Securities and participation
interests, or the credit enhancers of either, to meet their
obligations for the payment of interest and principal when
due. In addition, from time to time, the supply of Municipal
Securities acceptable for purchase by the Fund could become
limited.
The Fund may invest in Municipal Securities which are
repayable out of revenue streams generated from economically
related projects or facilities and/or whose issuers are
located in the same state. Sizable investments in these
Municipal Securities could involve an increased risk to the
Fund should any of these related projects or facilities
experience financial difficulties.
Obligations of issuers of Municipal Securities are subject to
the provisions of bankruptcy, insolvency, and other laws
affecting the rights and remedies of creditors. In addition,
the obligations of such issuers may become subject to laws
enacted in the future by Congress, state legislators, or
referenda extending the time for payment of principal and/or
interest, or imposing other constraints upon enforcement of
such obligations or upon the ability of states or
municipalities to levy taxes. There is also the possibility
that, as a result of litigation or other conditions, the power
or ability of any issuer to pay, when due, the principal of
and interest on its municipal securities may be materially
affected.
Non-Diversification
The Fund is non-diversified. An investment in the Fund,
therefore, will entail greater risk than would exist if it
were diversified because the higher percentage of investments
among fewer issuers may result in greater fluctuation in the
total market value of the Fund's portfolio. Any economic,
political, or regulatory developments affecting the value of
the securities in the Fund's portfolio will have a greater
impact on the total value of the portfolio than would be the
case if the portfolio were diversified among more issuers.
However, the Fund intends to comply with Subchapter M of the
Internal Revenue Code. This undertaking requires that, at the
end of each quarter of each taxable year, with regard to at
least 50% of the Fund's total assets, no more than 5% of its
total assets are invested in the securities of a single issuer
and that with respect to the remainder of the Fund's total
assets, no more than 25% of its total assets are invested in
the securities of a single issuer.
Investment Limitations
The Fund will not borrow money or pledge securities except,
under certain circumstances, the Fund may borrow up to
one-third of the value of its total assets and pledge assets
to secure such borrowings. This investment limitation cannot
be changed without shareholder approval.
Regulatory Compliance
The Fund may follow non-fundamental operational policies that
are more restrictive than its fundamental investment
limitations, as set forth in this prospectus and its Statement
of Additional Information, in order to comply with applicable
laws and regulations, including the provisions of and
regulations under the Investment Company Act of 1940, as
amended. In particular, the Fund will comply with the various
requirements of Rule 2a-7, which regulates money market mutual
funds. The Fund will determine the effective maturity of its
investments, as well as its ability to consider a security as
having received the requisite short-term ratings by NRSROs,
according to Rule 2a-7. The Fund may change these operational
policies to reflect changes in the laws and regulations
without the approval of its shareholders.
Signet Select Funds Information
Management of the Trust
Board of Trustees. The Board is responsible for managing the
business affairs of the Trust and for exercising all of the
powers of the Trust except those reserved for the
shareholders. The Executive Committee of the Board of Trustees
handles the Board's responsibilities between meetings of the
Board.
Investment Adviser. Investment decisions for the Trust are
made by Signet Asset Management, the Trust's investment
adviser (the "Adviser"), subject to direction by the Trustees.
The Adviser continually conducts investment research and
supervision for the Fund and is responsible for the purchase
or sale of portfolio instruments, for which it receives an
annual fee from the assets of the Fund.
Advisory Fees. The Adviser receives an annual investment
advisory fee at of .50 of 1% of the Fund's average net
assets. The investment advisory contract provides for the
voluntary waiver of expenses by the Adviser from time to
time. The Adviser can terminate this voluntary waiver of
expenses at any time with respect to the Fund at its sole
discretion. The Adviser has also undertaken to reimburse
the Fund for operating expenses in excess of
limitations established by certain states.
Adviser's Background. Signet Asset Management is a
division of Signet Trust Company, a wholly-owned
subsidiary of Signet Banking Corporation. Signet Banking
Corporation is a multi-state, multi-bank holding company
which has provided investment management services since
1956. Signet Trust Company, established in 1975, provides
trust and fiduciary services to individuals,
corporations and tax-exempt organizations throughout
Virginia and neighboring states. As of September 30,
1993, Signet Trust Company had $2.6 billion in total
trust assets. Signet Asset Management has investment
authority over $1.6 billion of the $2.6 billion. The
Adviser has managed Signet Select Funds since their
inception in 1990. The Adviser manages three equity
common trust funds with $47.5 million in assets and three
fixed income common trust funds with $204.7 million in
assets.
As part of their regular banking operations, Signet Asset
Management may make loans to public companies. Thus, it
may be possible, from time to time, for the Fund to hold
or acquire the securities of issuers which are also
lending clients of Signet Asset Management. The lending
relationship will not be a factor in the selection of
securities.
Distribution of the Fund
Federated Securities Corp. is the principal distributor for
the Fund. It is a Pennsylvania corporation organized on
November 14, 1969, and is the principal distributor for a
number of investment companies. Federated Securities Corp. is
a subsidiary of Federated Investors.
Distribution Plan. Under a distribution plan adopted in
accordance with Investment Company Act Rule 12b-1 (the
"Plan"), the distributor may select financial institutions
such as fiduciaries, custodians for public funds, investment
advisers and brokers/dealers to provide distribution and/or
administrative services as agents for their clients or
customers. Administrative services may include, but are not
limited to, the following functions: providing office space,
equipment, telephone facilities, and various personnel
including clerical, supervisory, and computer as necessary or
beneficial to establish and maintain shareholder accounts and
records; processing purchase and redemption transactions and
automatic investments of client account cash balances;
answering routine client inquiries regarding the Fund;
assisting clients in changing dividend options, account
designations, and addresses; and providing such other services
as the Fund reasonably requests for its shares.
The distributor will pay financial institutions a fee based
upon shares subject to the Plan and 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 Trustees, provided that for any period the total amount of
these fees shall not exceed an annual rate of .35 of 1% of the
average net asset value of shares subject to the Plan held
during the period by clients or customers of financial
institutions. Any fees paid by the distributor under the Plan
will be reimbursed from the assets of the Fund. The Plan will
not be activated unless and until a second class of shares of
the Fund, which will not have a Rule 12b-1 Plan, is created.
The distributor, in its sole discretion, may uniformly offer
to pay all brokers or dealers selling shares of the Fund
additional amounts predicated upon the amount of shares of the
Fund or certain other Funds of Signet Select Funds sold by the
broker or dealer. Such payments, if made, will be in addition
to amounts paid under the distribution plan and will not be an
expense of the Fund.
Administrative Arrangements. The distributor may pay
financial institutions a fee based upon the average net asset
value of shares of their customers invested in the Trust for
providing administrative services. This fee, if paid, will be
reimbursed by the Adviser and not the Trust.
Glass-Steagall Act. The Glass-Steagall Act prohibits a
depository institution (such as a commercial bank or a savings
and loan association) from being an underwriter or distributor
of most securities. In the event the Glass-Steagall Act is
deemed to prohibit depository institutions from acting in the
administrative capacities described above or should Congress
relax current restrictions on depository institutions, the
Board of Trustees will consider appropriate changes in the
administrative services.
State securities laws governing the ability of depository
institutions to act as underwriters or distributors of
securities may differ from interpretations given to the
Glass-Steagall Act and, therefore, banks and financial
institutions may be required to register as dealers pursuant
to state law.
Administration of the Fund
Administrative Services. Federated Administrative Services, a
subsidiary of Federated Investors, provides the Fund with
certain administrative personnel and services necessary to
operate the Fund. Such services include shareholder servicing
and certain legal and accounting services. Federated
Administrative Services provides these at an annual rate as
specified below:
Maximum Administrative Average Aggregate
Daily Net Assets
Fee
of the Trust
.15 of 1% on the first $250 million
.125 of 1% on the next $250 million
.10 of 1% on the next $250 million
.075 of 1% on assets in excess of $750
million
The administrative fee received by the Fund during any fiscal
year shall be at least $50,000. Federated Administrative
Services may voluntarily waive a portion of its fee.
Custodian. Signet Trust Company, Richmond, Virginia, is
custodian for the securities and cash of the Fund. Under the
Custodian Agreement, Signet Trust Company holds the Fund's
portfolio securities in safekeeping and keeps all necessary
records and documents relating to its duties.
Transfer Agent and Dividend Disbursing Agent. Federated
Services Company, Pittsburgh, Pennsylvania, is transfer agent
for the Fund and dividend disbursing agent for the Fund.
Legal Counsel. Legal counsel is provided by Houston, Houston
& Donnelly, Pittsburgh, Pennsylvania, and Dickstein, Shapiro &
Morin, Washington, D.C.
Independent Auditors. The independent auditors for the Fund
are Deloitte & Touche, Pittsburgh, Pennsylvania.
Expenses of the Fund
The Fund pays all of its own expenses and its allocable share
of Trust expenses. These expenses include, but are not limited
to the cost of: organizing the Trust and continuing its
existence; Trustees' fees; investment advisory and
administrative services; printing prospectuses and other
documents for shareholders; registering the Trust, the Fund,
and shares of the Fund; taxes and commissions; issuing,
purchasing, repurchasing and redeeming shares; fees for
custodians, transfer agents, dividend disbursing agents,
shareholder servicing agents, and registrars; printing,
mailing, auditing, accounting, and legal expenses; reports to
shareholders and government agencies; meetings of Trustees and
shareholders and proxy solicitations therefore; insurance
premiums; association membership dues; and such non-recurring
and extraordinary items as may arise.
Net Asset Value
The Fund attempts to stabilize the net asset value of its
shares at $1.00 by valuing its portfolio securities using the
amortized cost method. The net asset value for shares is
determined by adding the interest of the shares in the value
of all securities and other assets of the Fund, subtracting
the interest of the shares in the liabilities of the Fund and
those attributable to shares and dividing the remainder by the
total number of shares outstanding. Of course, the Fund cannot
guarantee that the net asset value will always remain at $1.00
per share.
Investing in the Fund
Share Purchases
Shares of the Fund are sold on days on which the New York
Stock Exchange is open for business except on Lee-Jackson-King
Day, Columbus Day and Veterans' Day. Shares of the Fund may be
purchased through Signet Financial Services, Inc. or Signet
Trust Company. In connection with the sale of shares of the
Fund, the distributor may from time to time offer certain
items of nominal value to any shareholder or investor.
Purchase orders must be received by Signet Financial Services,
Inc. or Signet Trust Company before 4:00 p.m. (Eastern time).
Payment for shares of the Fund may be made by check or by
wire. Orders are considered received after payment by check is
converted into federal funds and received by Signet Financial
Services, Inc. or Signet Trust Company. Payment must be
received by Signet Financial Services, Inc. or Signet Trust
Company on the next business day after placing the order. For
orders received by 11:00 a.m. (Eastern time), shareholders
will begin earning dividends on that day provided payment by
wire is received by Signet Financial Services, Inc. or Signet
Trust Company by 2:00 p.m. (Eastern time) on that day.
The Fund reserves the right to reject any purchase request.
To purchase shares of the Fund through Signet Financial
Services, Inc., call toll-free 1-800-723-9512. Trust and
institutional investors should contact their account officer
to make purchase requests through Signet Trust Company.
Payment for orders may be made:
By Mail. To purchase shares of the Fund by mail, send a check
made payable to Signet Select Tax-Free Money Market Fund to
Signet Financial Services, Inc., P.O. Box 26301, Richmond, VA
23260. Orders by mail should be accompanied by an account
application.
Orders by mail are considered received after payment by check
is converted by Signet Financial Services, Inc. into federal
funds. This is generally the next business day after Signet
Financial Services, Inc. receives the check.
By Wire. Payment by wire must be received by Signet Trust
Company before 2:00 p.m. (Eastern time). Shares of the Fund
cannot be purchased by Federal Reserve Wire on Columbus Day,
Veterans' Day or Lee-Jackson-King Day. To purchase shares by
wire, trust and institutional investors should contact their
trust investment adviser. All other shareholders should
contact Signet Financial Services, Inc.
Systematic Investment Program
Once an account has been opened, holders of shares may add to
their investment on a regular basis in a minimum amount of
$100. Under this program, funds may be automatically withdrawn
periodically from the shareholder's checking account and
invested in shares at the net asset value next determined
after an order is received by Signet Financial Services, Inc.
A Shareholder may apply for participation in this program
through Signet Financial Services, Inc..
Minimum Investment Required
The minimum initial investment in the Fund is $1,000.
Subsequent investments must be in amounts of at least $100. No
minimum investment is required for officers, directors and
employees (and their spouses and immediate family members) of
Signet Banking Corporation or its subsidiaries.
What Shares Cost
Shares of the Fund are sold at their net asset value next
determined after an order is received. There is no sales
charge imposed by the Fund.
The net asset value is determined at 1:00 p.m. (Eastern time)
and 4:00 p.m. (Eastern time), Monday through Friday, except
on: (i) days on which there are not sufficient changes in the
value of a Fund's portfolio securities that its net asset
value might be materially affected; (ii) days during which no
shares of a Fund are tendered for redemption and no orders to
purchase shares are received; or (iii) the following holidays:
New Year's Day, Lee-Jackson-King Day, Presidents' Day, Good
Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, and Christmas Day.
Certificates and Confirmations
As transfer agent for the Fund, Federated Services Company
maintains a share account for each shareholder of record.
Share certificates are not issued unless requested by
contacting Signet Financial Services, Inc. in writing. Monthly
confirmations are sent to report transactions such as
purchases and redemptions as well as dividends paid during the
month.
Dividends
Dividends are declared daily and paid monthly.
Shares purchased by wire before 2:00 p.m. (Eastern time) begin
earning dividends that day. Shares purchased by check begin
earning dividends on the day after the check is converted by
Signet Trust Company into federal funds.
Unless cash payments are requested by shareholders in writing
to the Fund, dividends are automatically reinvested in
additional shares of the Fund on payment dates at the
ex-dividend date net asset value without a sales charge.
Capital Gains
Capital gains, if any, could result in an increase in
dividends. Capital losses could result in a decrease in
dividends. If, for some extraordinary reason, the Fund
realizes net long-term capital gains, it will distribute them
at least once every 12 months.
Exchange Privilege
All holders of the Fund are shareholders of the Trust.
Shareholders have easy access to Investment Shares of the
other funds comprising the Trust ("participating funds")
through an exchange program.
Shares of the Fund may be exchanged for shares of
participating funds at net asset value without paying a
redemption fee or sales charge upon such exchange.
Shareholders who exercise this exchange privilege must
exchange shares having a net asset value of at least $1,000.
Prior to any exchange, the shareholder must receive a copy of
the current prospectus of the participating fund into which an
exchange is to be made.
Upon receipt by Signet Financial Services, Inc. of proper
instructions and all necessary supporting documents, shares
submitted for exchange will be redeemed at the next-determined
net asset value and invested in shares of the other
participating fund. If the exchanging shareholder does not
have an account in the participating fund whose shares are
being acquired, a new account will be established with the
same registration and reinvestment options for dividends and
capital gains as the account from which shares are exchanged,
unless otherwise specified by the shareholder. In the case
where the new account registration is not identical to that of
the existing account, a signature guarantee is required. (See
"Redeeming Shares By Mail".) Exercise of this privilege is
treated as a sale for federal income tax purposes and,
depending on the circumstances, a short- or long-term capital
gain or loss may be realized. The Fund reserves the right to
modify or terminate the exchange privilege at any time.
Shareholders will be notified prior to any modification or
termination of this privilege. Shareholders may obtain further
information on the exchange privilege by calling Signet
Financial Services, Inc.
By Telephone. Shareholders may provide instructions for
exchanges between participating funds by calling Signet
Financial Services, Inc. toll-free at 1- 800-723-9512. It is
recommended that investors request this privilege at the time
of their initial application. Information on this service can
be obtained through Signet Financial Services, Inc. Shares may
be exchanged by telephone only between fund accounts having
identical shareholder registrations. Exchange instructions
given by telephone may be electronically recorded. If
reasonable procedures are not followed by a 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 Signet Financial Services,
Inc. and deposited to the shareholder's mutual fund account
before being exchanged.
Telephone exchange instructions must be received by Signet
Financial Services, Inc. before 3:00 p.m. (Eastern time) for
shares to be exchanged the same day. The telephone exchange
privilege may be modified or terminated at any time.
Shareholders will be notified of such modification or
termination. Shareholders of a Fund may have difficulty in
making exchanges by telephone through banks, brokers, and
other financial institutions during times of drastic economic
or market changes. If a shareholder cannot contact his bank,
broker, or financial institution by telephone, it is
recommended that an exchange request be made in writing and
sent by overnight mail to Signet Financial Services, Inc.
Redeeming Shares
The Fund redeems shares at their net asset value next
determined after Signet Financial Services, Inc. receives the
redemption request. Redemptions will be made on days on which
the Fund computes its net asset value. Telephone or written
requests for redemption must be received in proper form by
Signet Financial Services, Inc.
By Telephone. To redeem shares of the Fund through Signet
Financial Services, Inc., call toll-free 1-800-444-7123. Trust
and institutional investors should contact their account
officer to make redemption requests through Signet Trust
Company. Shares will be redeemed at the net asset value next
determined after the Fund receives the redemption request from
Signet Financial Services, Inc.
Redemption requests received before 11:00 a.m. (Eastern time)
will be wired the same day, but will not be entitled to that
day's dividend. A redemption request must be received by the
Fund before 4:00 p.m. (Eastern time). Redemption requests
through registered broker/dealers must be received by the Fund
before 3:00 p.m. (Eastern time). Signet Financial Services,
Inc. is responsible for promptly submitting redemption
requests and providing proper written redemption instructions
to the Fund. Other registered broker/dealers may charge
customary fees and commissions for this service.
If, at any time, the Fund should determine it necessary to
terminate or modify this method of redemption, shareholders
would be promptly notified.
An authorization form permitting the Fund to accept telephone
redemption requests must first be completed. It is recommended
that investors request this privilege at the time of their
initial application. If not completed at the time of initial
application, authorization forms and information on this
service can be obtained through Signet Financial Services,
Inc. Telephone redemption 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.
In the event of drastic economic or market changes, a
shareholder may experience difficulty in redeeming by
telephone. If such a case should occur, another method of
redemption, such as "By Mail", should be considered.
By Mail. Shareholders may redeem shares of the Fund by sending
a written request to Signet Financial Services, Inc. The
written request should include the shareholder's name, the
Fund name, the account number, and the share or dollar amount
requested. If share certificates have been issued, they must
be properly endorsed and should be sent by registered or
certified mail with the written request to Signet Financial
Services, Inc. P.O. Box 26301, Richmond, VA 23260.
Shareholders requesting a redemption of $50,000 or more, a
redemption of any amount to be sent to an address other than
that on record with the Fund, or a redemption payable other
than to the shareholder of record must have signatures on
written redemption requests guaranteed by:
. a trust company or commercial bank whose deposits are insured
by the Bank Insurance Fund, which is administered by the Federal
Deposit Insurance Corporation ("FDIC");
. a member of the New York, American, Boston, Midwest, or
Pacific Stock Exchange;
. a savings bank or savings and loan association whose deposits
are insured by the Savings Association Insurance Fund, which is
administered by the FDIC; or
. any other "eligible guarantor institution," as defined in the
Securities Exchange Act of 1934.
The Fund does not accept signatures guaranteed by a notary
public.
The Fund and its transfer agent have adopted standards for
accepting signature guarantees from the above institutions.
The Fund may elect in the future to limit eligible signature
guarantors to institutions that are members of a signature
guarantee program. The Fund and its transfer agent reserve the
right to amend these standards at any time without notice.
Normally, a check for the proceeds is mailed to the
shareholder within one business day, but in no event more than
seven days, after receipt of a proper written redemption
request.
Contingent Deferred Sales Charge
A contingent deferred sales charge will be imposed only in
certain instances in which the Fund shares being redeemed
("Exchange Shares") were acquired in exchange for Shares of
those other Signet Select Funds which charge a contingent
deferred sales charge ("CDSC Shares"). If Shares of the Fund
were acquired in exchange for CDSC Shares, redemption of such
Exchange Shares, within five years of the purchase of the CDSC
Shares, will be charged a contingent deferred sales charge by
the Fund's distributor. The fee will be based upon the lesser
of the original purchase price or the net asset value of the
CDSC Shares, as follows:
Amount of Purchase Contingent Deferred Sales Charge
Under $100,000 2.00%
$100,000 - $249,999 1.50%
$250,000 - $399,999 1.00%
$400,000 - $499,999 0.50%
$500,000 or more None
Separate purchases will not be aggregated for purposes of
determining the applicable contingent deferred sales charge.
The contingent deferred sales charge will not be imposed on
Exchange Shares where the CDSC Shares were acquired (i)
through the reinvestment of dividends or distribution of
capital gains, (ii) prior to October 1, 1992, or (iii) in
exchange for shares acquired prior to October 1, 1992. In
computing the contingent deferred sales charge, if any,
redemptions are deemed to have occurred in the following
order: 1) Exchange Shares representing CDSC Shares acquired
through the reinvestment of dividends and long-term capital
gains, 2) Exchange Shares representing CDSC Shares purchased
prior to October 1, 1992 (including shares acquired in
exchange for shares purchased prior to October 1, 1992), 3)
Exchange Shares representing CDSC Shares purchased more than
five years before the date of redemption, and 4) Exchange
Shares representing CDSC Shares purchased after October 1,
1992 and redeemed within five years of the date of purchase,
determined on a first-in, first-out basis.
The contingent deferred sales charge will not be imposed on
redemption of shares (i) following the death or disability (as
defined in the Internal Revenue Code) of a shareholder; (ii)
to the extent that the redemption represents a minimum
required distribution from an IRA or other retirement plan to
a shareholder who has attained the age of 70 1/2; (iii) owned
by the Trust Division of Signet Trust Company or other
affiliates of Signet Banking Corporation representing funds
which are held in a fiduciary, agency, custodial, or similar
capacity, or owned by directors and employees of the Fund,
Signet Banking Corporation or Federated Securities Corp. or
their affiliates, or any bank or investment dealer who has a
sales agreement with Federated Securities Corp. with regard to
the Fund, and their spouses and children under 21; or (iv) if
the proceeds from the redemption are used to purchase a Signet
Select variable annuity within 10 days of the redemption.
There is no contingent deferred sales charge when Fund shares
are exchanged for shares of any other portfolio of the Signet
Select Funds or when redemptions are made by the Fund to
liquidate accounts with low balances.
Systematic Withdrawal Program
Shareholders who desire to receive payments of a predetermined
amount may take advantage of the Systematic Withdrawal
Program. Under this program, shares are redeemed to provide
for periodic withdrawal payments in an amount directed by the
shareholder. Depending upon the amount of the withdrawal
payments, the amount of dividends paid and capital gains
distributions with respect to shares, and the fluctuation of
the net asset value of shares redeemed under this program,
redemptions may reduce, and eventually deplete, the
shareholder's investment in shares of a Fund. For this reason,
payments under this program should not be considered as yield
or income on the shareholder's investment in shares of a Fund.
To be eligible to participate in this program, a shareholder
must have an account value of at least $10,000. A shareholder
may apply for participation in this program through Signet
Financial Services, Inc.
Accounts with Low Balances
Due to the high cost of maintaining accounts with low
balances, a Fund may redeem shares in any account, except
retirement plans, and pay the proceeds to the shareholder if
the account balance falls below the required minimum value of
$1,000 due to shareholder redemptions. This requirement does
not apply, however, if the balance falls below $1,000 because
of changes in the Fund's net asset value. Before shares are
redeemed to close an account, the shareholder is notified in
writing and allowed 30 days to purchase additional shares to
meet the minimum requirement.
Shareholder Information
Voting Rights
Each share of the Fund gives the shareholder one vote in
Trustee elections and other matters submitted to shareholders
for vote. All shares of all classes of each portfolio in the
Trust have equal voting rights, except that in matters
affecting only a particular Fund or class, only shareholders
of that Fund or class are entitled to vote. As a Massachusetts
business trust, the Trust is not required to hold annual
shareholder meetings. Shareholder approval will be sought only
for certain changes in the operation of the Trust or the Fund
and for the election of Trustees under certain circumstances.
Trustees may be removed by the Trustees or by shareholders at
a special meeting. A special meeting of the shareholders shall
be called by the Trustees upon the written request of
shareholders owning at least 10% of the Trust's outstanding
shares.
Massachusetts Partnership Law
Under certain circumstances, shareholders may be held
personally liable as partners under Massachusetts law for acts
or obligations of the Trust. To protect shareholders, the
Trust has filed legal documents with Massachusetts that
expressly disclaim the liability of shareholders for such acts
or obligations of the Trust. These documents require notice of
this disclaimer to be given in each agreement, obligation, or
instrument the Trust or its Trustees enter into or sign.
In the unlikely event a shareholder is held personally liable
for obligations of the Trust, the Trust is required to use its
property to protect or compensate the shareholder. On request,
the Trust will defend any claim made and pay any judgment
against a shareholder for any act or obligation of the Trust.
Therefore, financial loss resulting from liability as a
shareholder will occur only if the Trust cannot meet its
obligations to indemnify shareholders and pay judgments
against them from its assets.
Effect of Banking Laws
Banking laws and regulations presently prohibit a bank holding
company registered under the federal Bank Holding Company Act
of 1956 or any bank or non-bank affiliate thereof from
sponsoring, organizing, controlling or distributing the shares
of a registered, open-end investment company continuously
engaged in the issuance of its shares, and prohibit banks
generally from issuing, underwriting, or distributing
securities. However, such banking laws and regulations do not
prohibit such a holding company affiliate or banks generally
from acting as investment adviser, transfer agent or custodian
to such an investment company or from purchasing shares of
such a company as agent for and upon the order of such a
customer. Signet Trust Company is subject to such banking laws
and regulations.
Signet Trust Company believes, based on the advice of its
counsel, that Signet Asset Management may perform the services
for any Fund contemplated by its advisory agreement with the
Trust without violation of the Glass-Steagall Act or other
applicable banking laws or regulations. Changes in either
federal or state statutes and regulations relating to the
permissible activities of banks and their subsidiaries or
affiliates, as well as further judicial or administrative
decisions or interpretations of such or future statutes and
regulations, could prevent Signet Asset Management from
continuing to perform all or a part of the above services for
its customers and/or a Fund. If it were prohibited from
engaging in these customer-related activities, the Trustees
would consider alternative advisers and means of continuing
available investment services. In such event, changes in the
operation of a Fund may occur, including possible termination
of any automatic or other Fund share investment and redemption
services then being provided by Signet Asset Management. It is
not expected that existing shareholders would suffer any
adverse financial consequences (if another adviser with
equivalent abilities to Signet Asset Management is found) as a
result of any of these occurrences.
State securities laws governing the ability of depository
institutions to act as underwriters or distributors of
securities may differ from interpretations given to the
Glass-Steagall Act and, therefore, banks and financial
institutions may be required to register as dealers pursuant
to state law.
Tax Information
Federal Income Tax
The Fund will pay no federal income tax because it expects to
meet requirements of the Internal Revenue Code applicable to
regulated investment companies and to receive the special tax
treatment afforded to such companies.
The Fund will be treated as a single, separate entity for
federal income tax purposes so that income (including capital
gains) and losses realized by the Trust's other portfolios
will not be combined for tax purposes with those realized by
the Fund.
Shareholders are not required to pay the federal regular
income tax on any dividends received from the Fund that
represent net interest on tax-exempt municipal bonds.
However, under the Tax Reform Act of 1986, dividends
representing net interest earned on certain "private activity"
bonds issued after August 17, 1986, may be included in
calculating the federal individual alternative minimum tax or
the federal alternative minimum tax for corporations. The
Fund may purchase all types of municipal bonds, including
private activity bonds.
The alternative minimum tax applies when it exceeds the
regular tax for the taxable year. Alternative minimum taxable
income is equal to the regular taxable income of the taxpayer
increased by certain "tax preference" items not included in
regular taxable income and reduced by only a portion of the
deductions allowed in the calculation of the regular tax.
Dividends of the Fund representing net interest income earned
on some temporary investments and any realized net short-term
gains are taxed as ordinary income.
These tax consequences apply whether dividends are received in
cash or as additional shares.
State and Local Taxes
Because interest received by the Fund may not be exempt from
all state and local income taxes, shareholders may be required
to pay state and local taxes on dividend received from the
Fund. Shareholders are urged to consult their own tax
advisers regarding the status of their accounts under state
and local tax laws.
Performance Information
From time to time, the Fund may advertise its yield, effective
yield, and tax-equivalent yield.
The yield represents the annualized rate of income earned on
an investment in the Fund over a seven-day period. It is the
annualized dividends earned during the period on the
investment, shown as a percentage of the investment. The
effective yield is calculated similarly to the yield, but,
when annualized, the income earned on an investment in the
Fund is assumed to be reinvested daily. The effective yield
will be slightly higher than the yield because of the
compounding effect of this assumed reinvestment.
The tax equivalent yield of the Fund is calculated similarly
to the yield, but is adjusted to reflect the taxable yield
that the Fund would have had to earn to equal its actual
yield, assuming a specific tax rate.
Advertisements and other sales literature may also refer to
total return. Total return represents the change, over a
specified period of time, in the value of an investment in the
Fund after reinvesting all income distributions. It is
calculated by dividing that change by the initial investment
and is expressed as a percentage,
From time to time, the Fund may advertise its performance
using certain reporting services and compare its performances
to certain indices.
Addresses
Signet Select Funds
Tax-Free Money Market Fund Federated Investors Tower
Pittsburgh, Pennsylvania
15222-3779
Distributor
Federated Securities Corp. Federated Investors Tower
Pittsburgh, PA 15222
Investment Adviser
Signet Asset Management 7 North Eighth Street
Richmond , VA 23219
Custodian
Signet Trust Company 7 North Eighth Street
Richmond, VA 23219
Transfer Agent and Dividend Disbursing Agent
Federated Services Company Federated Investors Tower
Pittsburgh, PA 15222
Legal Counsel
Dickstein, Shapiro and Morin 2101 L Street NW
Washington, DC 20037
Legal Counsel
Houston, Houston and Donnelly 2510 Center City Tower
Pittsburgh, PA 15222
Independent Public Accountants
Deloitte & Touche 2500 One PPG Place
Pittsburgh, PA 15222
Signet Select Tax-Free
Money Market Fund
Prospectus
A non-diversified Portfolio of Signet Select Funds,
an Open-End Management Investment Company
Prospectus dated June __, 1994
Federated Securities Corp.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
Signet Select Tax-Free Money Market
Fund
(A Portfolio Of Signet Select Funds)
STATEMENT OF ADDITIONAL INFORMATION
This Statement of Additional Information should be read with
the prospectus of Signet Select Tax-Free Money Market Fund
(the "Fund") dated June __, 1994. This Statement is not a
prospectus. To receive a copy of a prospectus, write or call
the Fund.
Statement dated June __, 1994
FEDERATED INVESTORS TOWER
PITTSBURGH, PENNSYLVANIA 15222-3779
General Information About the Trust 1
Investment Objective and Policies 1
Acceptable Investments 1
When-Issued And Delayed Delivery Transactions 2
Reverse Repurchase Agreements 2
Investment Limitations 2
Selling Short and Buying on Margin 2
Issuing Senior Securities and Borrowing Money 2
Pledging Assets 2
Lending Cash or Securities 2
Concentration of Investments 2
Investing in Commodities 2
Underwriting 3
Investing in Restricted Securities 3
Investing in Illiquid Securities 3
Investing in New Issuers 3
Investing for Control 3
Investing in Issuers Whose Securities Are Owned by Officers of the Trust 3
Investing in Options 3
Investing in Minerals 3
Signet Select Funds Management 4
The Funds 7
Fund Ownership 8
Trustee Liability 8
Investment Advisory Services 8
Adviser to the Trust 8
Advisory Fees 8
Fund Administration 8
Distribution Plan 9
Determining Net Asset Value 9
Redemption in Kind 9
The Fund's Tax Status 10
Performance Information 10
Yield 10
Effective Yield 10
Tax-Equivalent Yield 10
Tax-Equivalency Table 10
Tax-Free Yield* vs. Taxable Yield 11
Total Return 11
Performance Comparisons 11
Appendix 12
General Information About the Trust
Signet Select Funds (the "Trust") was established as a
Massachusetts business trust under a Declaration of Trust
dated June 20, 1990. As of the date of the Statement, the
Trust consists of seven separate portfolios of securities
(collectively, the "Funds", individually, a "Fund") which are
as follows: Maryland Municipal Bond Fund, Money Market Fund,
Tax-Free Money Market Fund, Treasury Money Market Fund, U.S.
Government Income Fund, Value Equity Fund, and Virginia
Municipal Bond Fund .
Investment Objective and Policies
The Fund's investment objective is current income exempt from
federal income tax consistent with stability of principal and
liquidity.
Acceptable Investments
The Fund invests in a portfolio of municipal securities
maturing in 13 months or less. As a matter of investment
policy, which cannot be changed without shareholder approval,
at least 80% of the Fund's annual interest income will be
exempt from federal income tax. The average maturity of the
securities in the Fund's portfolio, computed on a
dollar-weighted basis, will be 90 days or less. Unless
indicated otherwise, the policies described below may be
changed by the Board of Trustees (the "Trustees") without
shareholder approval. Shareholders will be notified before any
material change in these policies becomes effective.
Municipal Leases
The Fund may purchase Municipal Securities in the form of
participation interests that represent an undivided
proportional interest in lease payments by a governmental or
nonprofit entity. The lease payments and other rights under
the lease provide for and secure payments on the certificates.
Lease obligations may be limited by municipal charter or the
nature of the appropriation for the lease. In particular,
lease obligations may be subject to periodic appropriation.
If the entity does not appropriate funds for future lease
payments, the entity cannot be compelled to make such
payments. Furthermore, a lease may provide that the
participants cannot accelerate lease obligations upon default.
The participants would only be able to enforce lease payments
as they became due. In the event of a default or failure of
appropriation, unless the participation intertests are
credit-enhanced, it is unlikely that the participants would be
able to obtain an acceptable substitute source of payment.
Participation Interests
The financial institutions from which the Fund purchases
participation interests frequently provide or secure from
another financial institution irrevocable letters of credit or
guarantees and give the Fund the right to demand payment of
the principal amounts of the participation interests plus
accrued interest on short notice (usually within seven days).
The municipal securities subject to the participation include
the right to demand payment from the issuers of those
interests. These financial institutions may charge certain
fees in connection with their repurchase commitments,
including a fee equal to the excess of the interest paid on
the municipal securities over the negotiated yield at which
the participation interests were purchased by the Fund. By
purchasing participation interests having a seven day feature,
the Fund is buying a security meeting the maturity and quality
requirements of the Fund and also is receiving the tax-free
benefits of the underlying securities.
Variable Rate Municipal Securities
Variable interest rates generally reduce changes in the market
value of municipal securities from their original purchase
prices. Accordingly, as interest rates decrease or increase,
the potential for capital appreciation or depreciation is less
for variable rate municipal securities than for fixed income
obligations.
Many municipal securities with variable interest rates
purchased by the Fund are subject to repayment of principal
(usually within seven days) on the Fund's demand. For
purposes of determining the Fund's average maturity, the
maturities of these variable rate demand municipal securities
(including participation interests) are the longer of the
periods remaining until the next readjustment of their
interest rates or the periods remaining until their principal
amounts can be recovered by exercising the right to demand
payment. The terms of these variable rate demand instruments
require the participation interests, or a guarantor of either
issuer.
When-Issued And Delayed Delivery Transactions
These transactions are made to secure what is considered to be
an advantageous price or yield for the Fund. Settlement dates
may be a month or more after entering into these transactions,
and the market values of the securities purchased may vary
from the purchase prices. No fees or other expenses, other
than normal transaction costs, are incurred. However, liquid
assets of the Fund sufficient to make payment for the
securities to be purchased are segregated on the Fund's
records at the trade date. These assets are marked to market
daily and are maintained until the transaction has been
settled. The Fund does not intend to engage in when-issued
and delayed delivery transactions to an extent that would
cause the segregation of more than 20% of the total value of
its assets.
Reverse Repurchase Agreements
The Fund may also enter into reverse repurchase agreements.
These transactions are similar to borrowing cash. In a
reverse repurchase agreement, the Fund transfers possession of
a portfolio instrument in return for a percentage of the
instrument's market value in cash and agrees that on a
stipulated date in the future the Fund will repurchase the
portfolio instrument by remitting the original consideration
plus interest at an agreed upon rate. The use of reverse
repurchase agreements may enable the Fund to avoid selling
portfolio instruments at a time when a sale may be deemed to
be disadvantageous, but does not ensure this result. When
effecting reverse repurchase agreements, liquid assets of the
Fund, in a dollar amount sufficient to make payment for the
obligations to be purchased, are: segregated on the Fund's
records at the trade date; marked to market daily; and
maintained until the transaction is settled.
Investment Limitations
Selling Short and Buying on Margin
The Fund will not sell any securities short or purchase any
securities on margin but may obtain such short-term credits as
are necessary for clearance of transactions.
Issuing Senior Securities and Borrowing Money
The Fund will not issue senior securities except that the Fund
may borrow money in amounts up to one-third of the value of
its total assets, including the amounts borrowed.
The Fund will not borrow money for investment leverage, but
rather as a temporary, extraordinary, or emergency measure or
to facilitate management of the portfolio by enabling the Fund
to meet redemption requests when the liquidation of portfolio
securities is deemed to be inconvenient or disadvantageous.
The Fund will not purchase any securities while borrowings in
excess of 5% of the value of its total assets are outstanding.
Pledging Assets
The Fund will not mortgage, pledge, or hypothecate any assets
except as necessary to secure permitted borrowings.
Lending Cash or Securities
The Fund will not lend any of its assets, except that it may
purchase or hold portfolio securities permitted by its
investment objective, policies, and limitations, or
Declaration of Trust.
Concentration of Investments
The Fund will not invest more than 25% of its total assets in
any one industry, except that it may invest more than 25% of
its total assets in securities issued or guaranteed by the
U.S. government, its agencies or instrumentalities and
industrial development bonds as long as they are not from the
same facility or similar types of facilities.
Investing in Commodities
The Fund will not purchase or sell commodities, commodity
contracts, or commodity futures contracts.
Underwriting
The Fund will not underwrite any issue of securities, except
as it may be deemed to be an underwriter under the Securities
Act of 1933 in connection with the sale of securities in
accordance with its investment objective, policies, and
limitations.
The above limitations cannot be changed without shareholder
approval. The following investment limitations, however, may
be changed by Trustees without shareholder approval.
Shareholders will be notified before any material change in
these limitations becomes effective.
Investing in Restricted Securities
The Fund will not invest more than 10% of its total assets in
securities subject to restrictions on resale under federal
securities law, except for restricted securities determined to
be liquid under criteria established by the Trustees.
Investing in Illiquid Securities
The Fund will not invest more than 10% of the value of its net
assets in illiquid securities.
Investing in New Issuers
The Fund will not invest more than 5% of the value of its
total assets in securities of issuers which have records of
less than three years of continuous operations, including the
operation of any predecessor.
Investing for Control
The Fund will not invest in securities of a company for the
purpose of exercising control or management.
Investing in Issuers Whose Securities Are Owned by Officers of
the Trust
The Fund will not purchase or retain the securities of any
issuer if the Officers and Trustees of the Trust or its
investment adviser owning individually more than .50 of 1% of
the issuer's securities together own more than 5% of the
issuer's securities.
Investing in Options
The Fund will not invest in puts, calls, straddles, spreads,
or any combination of them.
Investing in Minerals
The Fund will not purchase or sell interests in oil, gas, or
other mineral exploration or development programs or leases,
although it may purchase the securities of issuers which
invest in or sponsor such programs.
Except with respect to borrowing money, if a percentage
limitation is adhered to at the time of investment, a later
increase or decrease in percentage resulting from any change
in value or net assets will not result in a violation of such
limitation.
The Fund does not intend to borrow money or pledge securities
in excess of 5% of the value of its net assets during the
coming fiscal year.
Signet Select Funds Management
Officers and Trustees are listed with their addresses,
principal occupations, and present positions, including any
affiliation with Signet Asset Management, Signet Trust
Company, Federated Investors, Federated Securities Corp.,
Federated Services Company, and Federated Administrative
Services or the Funds (as defined below).
Positions with Principal Occupations
Name and Address the Fund During Past Five Years
John F. Donahue@* Chairman and Chairman and Trustee, Federated
Federated Investors Trustee Investors; Chairman and Trustee,
Tower Federated Advisers, Federated
Pittsburgh, PA Management, and Federated
Research; Director, AEtna Life
and Casualty Company; Chief
Executive Officer and Director,
Trustee, or Managing General
Partner of the Funds; formerly,
Director, The Standard Fire
Insurance Company. Mr. Donahue
is the father of J. Christopher
Donahue, Vice President
of the Fund.
John T. Conroy, Jr. Trustee President, Investment Properties
Wood/IPC Commercial Corporation; Senior Vice-President,
Department John R. Wood and Associates, Inc.,
John R. Wood and Realtors; President, Northgate
Associates, Inc., Realtors Village Development Corporation;
3255 Tamiami Trail North General Partner or Trustee in
Naples, FL private real estate ventures in
Southwest Florida; Director,
Trustee, or Managing General
Partner of the Funds; formerly,
President, Naples Property
Management, Inc.
William J. Copeland Trustee Director and Member of the
One PNC Plaza - 23rd Floor Executive Committee, Michael
Pittsburgh, PA Baker, Inc.; Director, Trustee,
or Managing General Partner of
the Funds; formerly, Vice
Chairman and Director, PNC
Bank, N.A., and PNC Bank Corp.
and Director, Ryan Homes, Inc.
James E. Dowd Trustee Attorney-at-law; Director, The
571 Hayward Mill Road Emerging Germany Fund, Inc.;
Concord, MA Director, Trustee, or Managing
General Partner of the Funds;
formerly, Director, Blue Cross
of Massachusetts, Inc.
Lawrence D. Ellis, M.D. Trustee Hematologist, Oncologist, and
3471 Fifth Avenue Internist, Presbyterian and
Suite 1111 Montefiore Hospitals; Clinical
Pittsburgh, PA Professor of Medicine and
Trustee, University of
Pittsburgh; Director, Trustee,
or Managing General Partner of
the Funds.
Edward L. Flaherty, Jr.@ Trustee Attorney-at-law; Partner, Meyer
5916 Penn Mall and Flaherty; Director, Eat'N
Pittsburgh, PA Park Restaurants, Inc., and
Statewide Settlement Agency,
Inc.; Director, Trustee, or
Managing General Partner of
the Funds; formerly, Counsel,
Horizon Financial, F.A.,
Western Region.
Edward C. Gonzales* President, Vice President, Treasurer, and
Federated Investors Treasurer, and Trustee, Federated Investors; Vice
Tower Trustee President and Treasurer, Federated
Pittsburgh, PA Advisers, Federated Management,
and Federated Research; Executive
Vice President, Treasurer, and
Director, Federated Securities Corp.;
Trustee, Federated Services
Company; Chairman, Treasurer,
and Director, Federated
Administrative Services;
Trustee or Director of some of the
Funds; Vice President and
Treasurer of the Funds.
Peter E. Madden Trustee Consultant; State Representative,
225 Franklin Street Commonwealth of Massachusetts;
Boston, MA Director, Trustee, or Managing
General Partner of the Funds;
formerly, President, State Street
Bank and Trust Company and
State Street Boston Corporation
and Trustee, Lahey Clinic
Foundation, Inc.
Gregor F. Meyer Trustee Attorney-at-law; Partner, Meyer
5916 Penn Mall and Flaherty; Chairman, Meritcare,
Pittsburgh, PA Inc.; Director, Eat'N Park
Restaurants, Inc.; Director, Trustee,
or Managing General Partner of the
Funds; formerly, Vice Chairman,
Horizon Financial, F.A.
Wesley W. Posvar Trustee Professor, Foreign Policy and
1202 Cathedral of Management Consultant; Trustee,
Learning Carnegie Endowment for
University of Pittsburgh International Peace, RAND
Pittsburgh, PA Corporation, Online Computer
Library Center, Inc., and U.S.
Space Foundation; Chairman,
Czecho Slovak Management
Center; Director, Trustee, or
Managing General Partner of the
Funds; President Emeritus,
University of Pittsburgh; formerly,
Chairman, National Advisory
Council for Environmental Policy
and Technology.
Marjorie P. Smuts Trustee Public relations/marketing
4905 Bayard Street consultant; Director, Trustee,
Pittsburgh, PA or Managing General Partner of
the Funds.
Craig P. Churman Vice President Vice President, Federated
Federated Investors and Assistant Administrative Services;
Tower Treasurer Vice President and
Pittsburgh, PA Assistant Treasurer of
some of the Funds.
J. Christopher Vice President and Trustee,
Donahue President Federated Investors; Trustee,
Federated Investors Federated Advisers, Federated
Tower Management, and Federated
Pittsburgh, PA Research; President and Director,
Federated Administrative Services;
Trustee, Federated Services
Company; President or Vice
President of the Funds; Director,
Trustee, or Managing General
Partner of some of the Funds.
Mr. Donahue is the son of John F.
Donahue, Chairman and
Trustee of the
Trust.
Richard B. Fisher Vice President Executive Vice President and
Federated Investors Trustee, Federated Investors;
Tower Chairman and Director,
Pittsburgh, PA Federated Securities Corp.;
President or Vice President of
the Funds; Director or Trustee
of some of the Funds.
John W. McGonigle Vice President Vice President, Secretary, General
Federated Investors and Secretary Counsel, and Trustee, Federated
Tower Investors; Vice President, Secretary,
Pittsburgh, PA and Trustee, Federated Advisers,
Federated Management, and
Federated Research; Trustee,
Federated Services Company;
Executive Vice President, Secretary,
and Director, Federated
Administrative Services;
Director and Executive Vice
President, Federated Securities
Corp.; Vice President and Secretary
of the Funds.
John A. Staley, IV Vice President Vice President and Trustee,
Federated Investors Federated Investors; Executive Vice
Tower President, Federated Securities
Pittsburgh, PA Corp.; President and Trustee,
Federated Advisers, Federated
Management, and Federated
Research; Vice President of the
Funds; Director, Trustee, or
Managing General Partner of some
of the Funds; formerly, Vice
President, The Standard Fire
Insurance Company and President
of its Federated Research Division.
of the Funds.
* This Trustee is deemed to be an "interested person" of the
Fund as defined in the Investment Company Act of 1940.
@ Member of the Executive Committee. The Executive Committee
of the Board of Trustees handles the responsibilities of
the Board of Trustees between meetings of the Board.
The Funds
A. T. Ohio Municipal Money Fund; American Leaders Fund, Inc.;
Annuity Management Series; Automated Cash Management Trust;
Automated Government Money Trust; The Boulevard Funds;
California Municipal Cash Trust; Cash Trust Series II; Cash
Trust Series, Inc.; DG Investor Series; Edward D. Jones & Co.
Daily Passport Cash Trust; Federated ARMs Fund; Federated
Exchange Fund, Ltd.; Federated GNMA Trust; Federated
Government Trust; Federated Growth Trust; Federated High Yield
Trust; Federated Income Securities Trust; Federated Income
Trust; Federated Index Trust; Federated Intermediate
Government Trust; Federated Master Trust; Federated Municipal
Trust; Federated Short-Intermediate Government Trust;
Federated Short-Term U.S. Government Trust; Federated Stock
Trust; Federated Tax-Free Trust; Federated U.S. Government
Bond Fund; First Priority Funds; Fixed Income Securities,
Inc.; Fortress Adjustable Rate U.S. Government Fund, Inc.;
Fortress Municipal Income Fund, Inc.; Fortress Utility Fund,
Inc.; Fund for U.S. Government Securities, Inc.; Government
Income Securities, Inc.; High Yield Cash Trust; Insight
Institutional Series, Inc.; Insurance Management Series;
Intermediate Municipal Trust; International Series, Inc.;
Investment Series Funds, Inc.; Investment Series Trust;
Liberty Equity Income Fund, Inc.; Liberty High Income Bond
Fund, Inc.; Liberty Municipal Securities Fund, Inc.; Liberty
U.S. Government Money Market Trust; Liberty Term Trust, Inc. -
1999; Liberty Utility Fund, Inc.; Liquid Cash Trust; Managed
Series Trust; Mark Twain Funds; Money Market Management, Inc.;
Money Market Obligations Trust; Money Market Trust; Municipal
Securities Income Trust; New York Municipal Cash Trust; 111
Corcoran Funds; Peachtree Funds; The Planters Funds; Portage
Funds; RIMCO Monument Funds; The Shawmut Funds; Short-Term
Municipal Trust; Signet Select Funds; Star Funds; The
Starburst Funds; The Starburst Funds II; Stock and Bond Fund,
Inc.; Sunburst Funds; Targeted Duration Trust; Tax-Free
Instruments Trust; Trademark Funds; Trust for Financial
Institutions; Trust For Government Cash Reserves; Trust for
Short-Term U.S. Government Securities; Trust for U.S. Treasury
Obligations.
Fund Ownership
Officers and Trustees own less than 1% of the Fund's
outstanding shares.
Trustee Liability
The Declaration of Trust provides that the Trustees will not
be liable for errors of judgment or mistakes or fact or law.
However, they are not protected against any liability to which
they would otherwise be subject by reason of willful
misfeasance, bad faith, gross negligence, or reckless
disregard of the duties involved in the conduct of their
office.
Investment Advisory Services
Adviser to the Trust
The Trust's investment adviser is Signet Asset Management (the
"Adviser"), which is a division of Signet Trust Company, a
wholly-owned subsidiary of Signet Banking Corporation.
The Adviser shall not be liable to the Trust, the Fund, or any
shareholder of the Fund for any losses that may be sustained
in the purchase, holding, or sale of any security or for
anything done or omitted by it, except for acts or omissions
involving willful misfeasance, bad faith, gross negligence, or
reckless disregard of the duties imposed upon it by its
contract with the Trust.
Because of the internal controls maintained by Signet Asset
Management to restrict the flow of non-public information,
Fund investments are typically made without any knowledge of
Signet Asset Management's or its affiliates' lending
relationships with an issuer.
Advisory Fees
For its advisory services, the Adviser receives an annual
investment advisory fee as described in the prospectus.
State Expense Limitations
The Adviser has undertaken to comply with the expense
limitations established by certain states for investment
companies whose shares are registered for sale in those
states. If the Fund's normal operating expenses
(including the investment advisory fee, but not including
brokerage commissions, interest, taxes, and extraordinary
expenses) exceed 2-1/2% per year of the first $30 million
of average net assets, 2% per year of the next $70
million of average net assets, and 1-1/2% per year of the
remaining average net assets, the Adviser will reimburse
the Fund for its expenses over the limitation.
If the Fund's monthly projected operating expenses exceed
this limitation, the investment advisory fee paid will be
reduced by the amount of the excess, subject to an annual
adjustment. If the expense limitation is exceeded, the
amount to be reimbursed by the Adviser will be limited,
in any single fiscal year, by the amount of the
investment advisory fees.
This arrangement is not part of the advisory contract and
may be amended or rescinded in the future.
Fund Administration
Federated Administrative Services, which is a subsidiary of
Federated Investors, provides administrative personnel and
services to the Fund for a fee as described in the prospectus.
John A. Staley, IV, an officer of the Trust, holds
approximately 15% of the outstanding common stock and serves
as a director of Commercial Data Services, Inc., a company
which provides computer processing services to Federated
Administrative Services.
Distribution Plan
The Fund has adopted a Plan pursuant to Rule 12b-1 which was
promulgated by the Securities and Exchange Commission pursuant
to the Investment Company Act of 1940. The Plan permits the
payment of fees to brokers for distribution and administrative
services and to administrators for administrative services.
The Plan is designed to (i) stimulate brokers to provide
distribution and administrative support services to
shareholders and (ii) stimulate administrators to render
administrative support services to shareholders. The
administrative services are provided by a representative who
has knowledge of the shareholder's particular circumstances
and goals. By adopting the Plan, the Board of Trustees
expects that the Fund will be able to achieve a more
predictable flow of cash for investment purposes and to meet
redemptions. This will facilitate more efficient portfolio
management and assist the Fund in seeking to achieve its
investment objectives. By identifying potential investors
whose needs are served by the Fund's objectives, and properly
servicing these accounts, the Fund may be able to curb sharp
fluctuations in rates of redemptions and sales. Other
benefits may include: (1) an efficient and effective
administrative system; (2) a more efficient use of shareholder
assets by having them rapidly invested with a minimum of delay
and administrative detail; and (3) an efficient and reliable
shareholder records system and prompt responses to shareholder
requests and inquiries concerning their accounts.
Custodian and Portfolio Recordkeeper. Signet Trust Company,
Richmond, VA is custodian for the securities and cash of the
Fund. Federated Services Company, Pittsburgh, PA provides
certain accounting and recordkeeping services with respect to
the Fund's portfolio investments.
As custodian, Signet Trust Company holds the Fund's portfolio
securities in safekeeping and keeps all necessary records and
documents relating to its duties. For its services, the
custodian receives a fee at an annual rate of .05 of 1% on the
first $10 million of average net assets of each of the seven
respective portfolios and .025 of 1% on average net assets in
excess of $10 million. There is a $20 fee imposed on each
transaction. The custodian fee received during any fiscal
year shall be at least $1,000 per Fund.
Determining Net Asset Value
The Trustees have decided that the best method for determining
the value of portfolio instruments is amortized cost. Under
this method, portfolio instruments are valued at the
acquisition cost as adjusted for amortization of premium or
accumulation of discount rather than at current market value.
Accordingly, neither the amount of daily income nor the net
asset value is affected by any unrealized appreciation or
depreciation of the portfolio. In periods of declining
interest rates, the indicated daily yield on shares of the
Fund computed by dividing the annualized daily income on the
Fund's portfolio by the net asset value computed as above may
tend to be higher than a similar computation made by using a
method of valuation based upon market prices and estimates. In
periods of rising interest rates, the opposite may be true.
The Fund's use of the amortized cost method of valuing
portfolio instruments depends on its compliance with certain
conditions in Rule 2a-7 (the "Rule") promulgated by the
Securities and Exchange Commission under the Investment
Company Act of 1940. Under the Rule, the Trustees must
establish procedures reasonably designed to stabilize the net
asset value per share, as computed for purposes of
distribution and redemption, at $1.00 per share, taking into
account current market conditions and the Fund's investment
objective. The procedures include monitoring the relationship
between the amortized cost value per share and the net asset
value per share based upon available indications of market
value. The Trustees will decide what, if any, steps should be
taken if there is a difference of more than 0.5 of 1% between
the two values. The Trustees will take any steps they consider
appropriate (such as redemption in kind or shortening the
average portfolio maturity) to minimize any material dilution
or other unfair results arising from differences between the
two methods of determining net asset value.
Redemption in Kind
The Fund is obligated to redeem shares solely in cash up to
$250,000 or 1% of the Fund's net asset value, whichever is
less, for any one shareholder within a 90-day period. Any
redemption beyond this amount will also be in cash unless the
Trustees determine that further payments should be in kind.
In such cases, the Fund will pay all or a portion of the
remainder of the redemption in portfolio instruments valued in
the same way as the Fund determines net asset value. The
portfolio instruments will be selected in a manner that the
Trustees deem fair and equitable. Redemption in kind is not
as liquid as a cash redemption. If redemption is made in
kind, shareholders who sell these securities could receive
less than the redemption value and could incur certain
transaction costs.
The Fund's Tax Status
To qualify for the special tax treatment afforded to regulated
investment companies, the Fund must, among other
requirements: derive at least 90% of its gross income from
dividends, interest, and gains from the sale of securities;
derive less than 30% of its gross income from the sale of
securities held less than three months; invest in securities
within certain statutory limits; and distribute to its
shareholders at least 90% of its net income earned during the
year.
Performance Information
Performance depends upon such variables as: portfolio quality;
average portfolio maturity; type of instruments in which the
portfolio is invested; changes in interest rates; changes in
expenses; and the relative amount of cash flow. To the extent
that financial institutions and broker/dealers charge fees in
connection with services provided in conjunction with an
investment in shares of the Fund, the performance will be
reduced for those shareholders paying those fees.
Yield
The Fund calculates its yield based upon the seven days ending
on the day of the calculation, called the "base period." This
yield is computed by: determining the net change in the value
of a hypothetical account with a balance of one share at the
beginning of the base period, with the net change excluding
capital changes but including the value of any additional
shares purchased with dividends earned from the original one
share and all dividends declared on the original and any
purchased shares; dividing the net change in the account's
value by the value of the account at the beginning of the base
period to determine the base period return; and multiplying
the base period return by 365/7.
Effective Yield
The Fund calculates its effective yield by compounding the
unannualized base period return by: adding 1 to the base
period return; raising the sum to the 365/7th power; and
subtracting 1 from the result.
Tax-Equivalent Yield
The Fund's tax-equivalent yield is calculated similarly to the
yield, but is adjusted to reflect the taxable yield that the
Fund would have had to earn to equal its actual yield,
assuming a 31% tax rate (the maximum effective federal rate
for individuals) and assuming that income is 100% tax-exempt.
Tax-Equivalency Table
The Fund may also use a tax-equivalency table in advertising
and sales literature. The interest earned by the municipal
bonds in the Fund's portfolio generally remain free from
federal regular income tax,* and is often free from state and
local taxes as well. As the table below indicates, a
"tax-free" investment is an attractive choice for investors,
particularly in times of narrow spreads between tax-free and
taxable yields.
Tax-Free Yield* vs. Taxable Yield
Federal Income Tax Bracket
15.00% 28.00% 31.00%
Joint Return $1-38,000 $38,001-91,850
$91,851-140,000
Single Return $1-22,750 $22,751-55,100
$55,101-115,000
Tax-Exempt
Yield Taxable Yield Equivalent
2.50% 2.94% 3.47% 3.62%
3.00 3.53 4.17 4.35
3.50 4.12 4.86 5.07
4.00 4.71 5.56 5.80
4.50 5.29 6.25 6.52
5.00 5.88 6.94 7.25
Note: The maximum marginal tax rate for each bracket was used in
calculating the taxable yield equivalent.
The chart above if for illustrative purposes only. It is not an
indicator of past or future performance of the Fund.
*Some portion of the Fund's income may be subject to the federal alternative
minimum tax and state and local taxes.
Total Return
Average annual total return is the average compounded rate of
return for a given period that would equate a $1,000 initial
investment to the ending redeemable value of that investment.
The ending redeemable value is compounded by multiplying the
number of shares owned at the end of the period by the net
asset value per share at the end of the period. The number of
shares owned at the end of the period is based on the number
of shares purchased at the beginning of the period with
$1,000, adjusted over the period by any additional shares,
assuming the monthly reinvestment of all dividends and
distributions.
Performance Comparisons
Investors may use financial publications and/or indices to
obtain a more complete view of the Fund's performance. When
comparing performance, investors should consider all relevant
factors such as the composition of any index used, prevailing
market conditions, portfolio compositions of other funds, and
methods used to value portfolio securities and compute net
asset value. The financial publications and/or indices which
the Fund uses in advertising may include:
. Lipper Analytical Services, Inc. ranks funds in various fund
categories by making comparative calculations using total
return. Total return assumes the reinvestment of all income
dividends and capital gains distributions, if any. From
time to time, the Fund will quote its Lipper ranking in the
"Tax-Free Money Market Funds" category in advertising and
sales literature.
. IBC/Donoghue's Money Fund Report publishes annualized yields
of hundreds of money market funds on a weekly basis, and
through its Money Market Insight publication, reports
monthly and 12-month-to-date investment results for the same
money funds.
. Money, a monthly magazine, regularly
ranks money market funds in various
categories based on the latest available
seven-day compound effective yield.
From time to time, the Fund will quote
its Money ranking in advertising and
sales literature.
. Salomon Brothers Six-Month Prime Muni Notes is an index of
selected municipal notes, maturing in six months, whose
yields are chosen as representative of this market.
Calculations are made weekly and monthly.
. Salomon Brothers One-Month Tax-Exempt Commercial Paper is an
index of selected tax-exempt commercial paper issues,
maturing in one month, whose yields are chosen as
representative of this particular market. It is a weekly
quote of the most representative yields for selected
securities, issued by the U.S. Treasury, maturing in 30
days. Calculations are made weekly and monthly.
Ehrlich-Bober & Co., Inc. also tracks this Salomon Brothers
Index.
Appendix
Standard & Poor's Corporation, Municipal Bond Ratings
AAA _ Debt rated AAA has the highest rating assigned by
Standard & Poor's. Capacity to pay interest and repay
principal is extremely strong.
AA _ Debt rated AA has a very strong capacity to pay interest
and repay principal and differs from the higher rated issues
only in small degree.
NR _ NR indicates that no public rating has been requested,
that there is insufficient information on which to base a
rating, or that S&P does not rate a particular type of
obligation as a matter of policy.
Plus (+) or minus (-): The ratings of AA may be modified by
the addition of a plus or minus sign to show relative standing
within the rating category.
Moody's Investors Service, Municipal Bond Ratings
Aaa _ Bonds which are rated Aaa are judged to be of the best
quality. They carry the smallest degree of investment risk
and are generally referred to as "gilt edge." Interest
payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various
protective elements are likely to change, such changes as can
be visualized are most unlikely to impair the fundamentally
strong position of such issues.
Aa _ Bonds which are rated Aa are judged to be of high quality
by all standards. Together with the Aaa group they comprise
what are generally known as high grade bonds. They are rated
lower than the best bonds because margins of protection may
not be as large as in Aaa securities or fluctuation of
protective elements may be of greater amplitude or there may
be other elements present which make the long term risks
appear somewhat larger than in Aaa securities.
NR _ Not rated by Moody's
Moody's applies numerical modifiers, 1, 2, and 3 in the
generic rating classification of "Aa" in its corporate or
municipal bond rating system. The modifier 1 indicates that
the security ranks in the higher end of its generic rating
category; the modifier 2 indicates a mid-range ranking; and
the modifier 3 indicates that the issue ranks in the lower end
of its generic rating category.
Fitch Investors Service, Inc., Long-Term Debt Ratings
AAA _ Bonds considered to be investment grade and of the
highest credit quality. The obligor has an exceptionally
strong ability to pay interest and repay principal, which is
unlikely to be affected by reasonably foreseeable events.
AA _ Bonds considered to be investment grade and of very high
quality. The obligor's ability to pay interest and repay
principal is very strong, although not quite as strong as
bonds rated AAA. Because bonds rated in the AAA and AA
categories are not significantly vulnerable to foreseeable
future developments, short-term debt of these issuers is
generally rated F-1+.
NR _ NR indicates that Fitch does not the specific issue.
Plus (+) or Minus (-): Plus and minus signs are used with a
rating symbol to indicate the relative position of a credit
within the rating category. Plus and minus signs, however,
are not used in AAA category.
Standard & Poor's Corporation, Municipal Note Ratings
SP-1 _ Very strong or strong capacity to pay principal and
interest. Those issues determined to possess overwhelming
safety characteristics will be given a plus (+) designation.
SP-2 _ Satisfactory capacity to pay principal and interest.
Moody's Investors Service, Short-Term Loan Ratings
MIG1/VMIG1 _ This designation denotes best quality. There is
present strong protection by established cash flows, superior
liquidity support or demonstrated broad-based access to the
market for refinancing.
MIG2/VMIG2 _ This designation denotes high quality. Margins
of protection are ample although not so large as in the
preceding group.
Fitch Investors Service, Inc., Short-Term Debt Ratings
F-1+ _ Exceptionally Strong Credit Quality. Issues assigned
this rating are regarded as having the strongest degree of
assurance for timely payment.
F-1 _ Very Strong Credit Quality. Issues assigned this rating
reflect an assurance of timely payment only slightly less in
degree than issues rated F-1+.
F-2 _ Good Credit Quality. Issues carrying this rating have a
satisfactory degree of assurance for timely payment, but the
margin of safety is not as great as the F-1 and F-1+
categories.
PART C. OTHER INFORMATION.
Item 24. Financial Statements and Exhibits:
(a) Financial Statements (to be filed by amendment)
(b) Exhibits:
(1) (i) Copy of Declaration of Trust of the
Registrant; (7)
(ii) Copy of Amendment No. 1, dated September 20,
1990, to the Declaration of Trust;(2)
(iii) Copy of Amendment No. 2, dated November 14,
1991, to the Declaration of Trust;(5)
(2) Copy of By-Laws of the Registrant;(1)
(3) Not applicable;
(4) Copy of Specimen Certificate for Shares of Beneficial
Interest of the Registrant;+
(5) Copy of Investment Advisory Contract of the Registrant
(to be filed by amendment);
(6) Copy of Distributor's Contract of the Registrant (to be
filed by amendment);
(7) Not applicable;
(8) Copy of Custodian Agreement of the Registrant (to be
filed by amendment);
(9) Copy of Transfer Agency and Service Agreement of the
Registrant (to be filed by amendment);
(10) Copy of Opinion and Consent of Counsel as to
legality of shares being registered;(2)
(11) (i) Copy of Consent of Independent
Auditors;(7)
(ii) Opinions of Special Tax Counsel;(2)
(12) Not applicable;
(13) Copy of Initial Capital Understanding;(2)
(14) Not applicable;
(15) (i) Copy of Distribution Plan (to be filed
by amendment);
(ii) Copy of 12b-1 Agreement (to be filed by
amendment);
(16) Schedule for Computation of Fund Performance
Data;(3)
(17) Power of Attorney;(6)
(18) Not applicable.
+ All exhibits have been filed electronically.
(1) Response is incorporated by reference to Registrant's Initial Registration
Statement on Form N-1A filed August 24, 1990. (File No. 33-36451 and
811-6158).
(2) Response is incorporated by reference to Registrant's Pre-Effective
Amendment No. 3 and Amendment No. 3 to its Registration Statement on
Form N-1A filed October 9, 1990. (File Nos. 33-36451 and 811-6158).
(3) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 1 and Amendment No. 4 to its Registration Statement on Form
N-1A filed on May 9, 1991. (File Nos. 33-36451 and 811-6158).
(4) Response is incorporated by reference to the Registrant's Post-Effective
Amendment No. 2 and Amendment No. 5 to its Registration Statement on Form
N-1A filed on October 9, 1991. (File Nos. 33-36451 and 811-6158).
(5) Response is incorporated by reference to the Registrant's Post-Effective
Amendment No. 3 and Amendment No. 6 to its Registration Statement on Form
N-1A filed on December 2, 1991. (File Nos. 33-36451 and 811-6158).
(6) Response is incorporated by reference to the Registrant's Post-Effective
Amendment No. 4 and Amendment No. 7 to its Registration Statement on Form
N-1A filed December 1, 1992. (File Nos. 33-36451 and 811-6158)
(7) Response is incorporated by reference to the Registrant's Post-Effective
Amendment No. 5 and Amendment No. 8 to its Registration Statement on Form
N-1A filed November 24, 1993. (File Nos. 33-36451 and 811-6158)
Item 25. Persons Controlled by or Under Common Control with Registrant:
No persons are controlled by the Registrant.
Item 26. Number of Holders of Securities:
Number of Record Holders
Title of Class as of April 8, 1994
Shares of beneficial interest U.S. Government Income Fund
- Trust Shares 4
U.S. Government Income Fund
- Investment Shares 4290
Maryland Municipal Bond Fund
- Trust Shares 4
Maryland Municipal Bond Fund
- Investment Shares 1,089
Money Market Fund
- Trust Shares 4
Money Market Fund
- Investment Shares 102
Treasury Money Market Fund
- Trust Shares 8
Treasury Money Market Fund
- Investment Shares 36
Value Equity Fund
- Trust Shares 5
Value Equity Fund
- Investment Shares
2,386
Virginia Municipal Bond Fund
- Trust Shares 4
Virginia Municipal Bond Fund
- Investment Shares
1,707
Item 27. Indemnification: (1.)
Item 28. Business and Other Connections of Investment Adviser:
(a) For a description of the other business of Signet Asset
Management, the investment adviser, see the section entitled
"Signet Select Funds Information - Management of Signet
Select Funds" in Part A.
(1) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 1 and Amendment No. 4 to its Registration Statement on
Form N-1A filed on May 9, 1991. (File Nos. 33-36451 and 811-6158).
The Officers of the investment adviser are:
Other Substantial
Positions with Business, Profession,
Name the Adviser Vocation or Employment
Leslie P. Hunter President
Raymond E. Williams, Jr. Senior Vice President
Frank Pipino Senior Vice President
Joe Rose Vice President
Bob Perrin Vice President
Betty Speegle Vice President
David E. Buffington Vice President
Joe Stork Vice President
Nancy Koble Trust Officer
Margaret M. Lynch Assistant Vice President
Tim Maris Assistant Vice President
Aleen Easterling Vice President
Deitra Mitchell Assistant Vice President
Eugenia Freiburger Vice President
Patty Holder Assistant Vice President
Ray Baker Assistant Vice President
Tucker Henley Assistant Vice President
C. Lunsford Johnson Assistant Vice President
Charlotte Harris Vice President
Beth King Trust Officer
Bill Petroff Vice President
Darlene Parrish Trust Finance Officer
Gregory Weirich Vice President
Cynthia Wright Assistant Vice President
Jerry Weaks Vice President
Jim Carscaddon Assistant Vice President
Tom Francy Vice President
Pegram Johnson Vice President
DIRECTORS
Name
David K. Hunt
Leslie P. Hunter
Wallace B. Millner, III
T. Gaylon Layfield, III
Stewart P. McEntee
John F. Vogel
Item 29. Principal Underwriters:
(a) Federated Securities Corp., the Distributor for shares of the
Registrant, also acts as principal underwriter for the
following open-end investment companies: A.T. Ohio Municipal
Money Fund; Alexander Hamilton Funds; American Leaders Fund,
Inc.; Annuity Management Series; Automated Cash Management
Trust; Automated Government Money Trust; BayFunds; The
Biltmore Funds; The Biltmore Municipal Funds; The Boulevard
Funds; California Municipal Cash Trust; Cambridge Series Trust;
Cash Trust Series, Inc.; Cash Trust Series II; DG Investor
Series; Edward D. Jones & Co. Daily Passport Cash Trust; FT
Series, Inc.; Federated ARMs Fund; Federated Exchange Fund,
Ltd.; Federated GNMA Trust; Federated Government Trust;
Federated Growth Trust; Federated High Yield Trust; Federated
Income Securities Trust; Federated Income Trust; Federated
Index Trust; Federated Intermediate Government Trust; Federated
Master Trust; Federated Municipal Trust; Federated
Short-Intermediate Government Trust; Federated Short-Term U.S.
Government Trust; Federated Stock Trust; Federated Tax-Free
Trust; Federated U.S. Government Bond Fund; Financial Reserves
Fund; First Priority Funds; First Union Funds; Fixed Income
Securities, Inc.; Fortress Adjustable Rate U.S. Government
Fund, Inc.; Fortress Municipal Income Fund, Inc.; Fortress
Utility Fund, Inc.; Fountain Square Funds; Fund for U.S.
Government Securities, Inc.; Government Income Securities,
Inc.; High Yield Cash Trust; Independence One Mutual Funds;
Insight Institutional Series, Inc.; Insurance Management
Series; Intermediate Municipal Trust; Investment Series Funds,
Inc.; Investment Series Trust; Liberty Equity Income Fund,
Inc.; Liberty High Income Bond Fund, Inc.; Liberty Municipal
Securities Fund, Inc.; Liberty U.S. Government Money Market
Trust; Liberty Utility Fund, Inc.; Liquid Cash Trust; Managed
Series Trust; Mark Twain Funds; Marshall Funds, Inc.; Money
Market Management, Inc.; Money Market Obligations Trust; Money
Market Trust; The Monitor Funds; Municipal Securities Income
Trust; New York Municipal Cash Trust; 111 Corcoran Funds;
Peachtree Funds; The Planters Funds; Portage Funds; RIMCO
Monument Funds; The Shawmut Funds; Short-Term Municipal Trust;
Signet Select Funds; SouthTrust Vulcan Funds; Star Funds; The
Starburst Funds; The Starburst Funds II; Stock and Bond Fund,
Inc.; Sunburst Funds; Targeted Duration Trust; Tax-Free
Instruments Trust; Tower Mutual Funds; Trademark Funds; Trust
for Financial Institutions; Trust for Government Cash Reserves;
Trust for Short-Term U.S. Government Securities; Trust for U.S.
Treasury Obligations; Vision Fiduciary Funds, Inc.; Vision
Group of Funds, Inc.; and World Investment Series, Inc.
Federated Securities Corp. also acts as principal underwriter
for the following closed-end investment company: Liberty Term
Trust, Inc.- 1999.
(b)
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address With Underwriter With Registrant
Richard B. Fisher Director, Chairman, Chief Vice President
Federated Investors Tower Executive Officer, Chief
Pittsburgh, PA 15222-3779 Operating Officer, and
Asst. Treasurer, Federated
Securities Corp.
Edward C. Gonzales Director, Executive Vice President, Federated
Investors Tower President, and Treasurer, Treasurer,
Pittsburgh, PA 15222-3779 Federated Securities and Trustee
Corp.
John W. McGonigle Director, Executive Vice Vice President and
Federated Investors Tower President, and Assistant Secretary
Pittsburgh, PA 15222-3779 Secretary, Federated
Securities Corp.
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address With Underwriter With Registrant
John A. Staley, IV Executive Vice President Vice President
Federated Investors Tower and Assistant Secretary,
Pittsburgh, PA 15222-3779 Federated Securities Corp.
John B. Fisher President-Institutional Sales, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James F. Getz President-Broker/Dealer, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mark R. Gensheimer Executive Vice President of --
Federated Investors Tower Bank/Trust
Pittsburgh, PA 15222-3779 Federated Securities Corp.
Mark W. Bloss Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Theodore Fadool, Jr. Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Bryant R. Fisher Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Christopher T. Fives Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James S. Hamilton Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James M. Heaton Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
H. Joseph Kennedy Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Keith Nixon Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Timothy C. Pillion Senior Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
James R. Ball Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address With Underwriter With Registrant
Richard W. Boyd Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Jane E. Broeren-Lambesis Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mary J. Combs Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
R. Edmond Connell, Jr. Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Laura M. Deger Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Jill Ehrenfeld Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mark D. Fisher Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Joseph D. Gibbons Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
David C. Glabicki Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Richard C. Gonzales Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Scott A. Hutton Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
William J. Kerns Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
William E. Kugler Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Dennis M. Laffey Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address With Underwriter With Registrant
Francis J. Matten, Jr. Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Mark J. Miehl Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
J. Michael Miller Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
R. Jeffrey Niss Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Michael P. O'Brien Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Solon A. Person, IV Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Robert F. Phillips Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Eugene B. Reed Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Paul V. Riordan Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Charles A. Robison Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
David W. Spears Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Jeffrey A. Stewart Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Thomas E. Territ Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
William C. Tustin Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
(1) (2) (3)
Name and Principal Positions and Offices Positions and Offices
Business Address With Underwriter With Registrant
Richard B. Watts Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Philip C. Hetzel Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
Ernest L. Linane Assistant Vice President, --
Federated Investors Tower Federated Securities Corp.
Pittsburgh, PA 15222-3779
S. Elliott Cohan Secretary, Federated Assistant
Federated Investors Tower Securities Corp. Secretary
Pittsburgh, PA 15222-3779
(c) Not applicable.
Item 30. Location of Accounts and Records: (1.)
Item 31. Management Services: Not applicable.
Item 32. Undertakings:
Registrant hereby undertakes to comply with the provisions of
Section 16(c) of the 1940 Act with respect to the removal of
Trustees and the calling of special shareholder meetings by
shareholders.
Registrant hereby undertakes to furnish each person to
whom a prospectus is delivered with a copy of the Registrant's
latest annual report to shareholders, upon request and without
charge.
(1) Response is incorporated by reference to Registrant's Post-Effective
Amendment No. 1 and Post-Effective Amendment No. 4 to its Registration
Statement on Form N-1A filed on May 9, 1991. (File Nos. 33-36451 and
811-6158).
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant, SIGNET SELECT FUNDS,
certifies that it meets all of the requirements for effectiveness of this
Amendment to its Registration Statement pursuant to Rule 485(b) under the
Securities Act of 1933 and has duly caused this Amendment to its
Registration Statement to be signed on its behalf by the undersigned,
thereunto duly authorized, all in the City of Pittsburgh and Commonwealth
of Pennsylvania, on the 21st day of April 1994.
SIGNET SELECT FUNDS
BY: /s/C. Grant Anderson
C. Grant Anderson, Assistant Secretary
Attorney in Fact for John F. Donahue
April 21, 1994
Pursuant to the requirements of the Securities Act of 1933, this
Amendment to its Registration Statement has been signed below by the
following person in the capacity and on the date indicated:
NAME TITLE DATE
By: /s/C. Grant Anderson
C. Grant Anderson Attorney In Fact April 21, 1994
ASSISTANT SECRETARY For the Persons
Listed Below
NAME TITLE
John F. Donahue* Chairman and Trustee
(Chief Executive Officer)
Edward C. Gonzales* President, Treasurer,
and Trustee (Principal
Financial and
Accounting Officer)
John T. Conroy, Jr.* Trustee
William J. Copeland* Trustee
James E. Dowd* Trustee
Lawrence D. Ellis, M.D.* Trustee
Edward L. Flaherty, Jr.* Trustee
Peter E. Madden* Trustee
Gregor F. Meyer* Trustee
Wesley W. Posvar* Trustee
Marjorie P. Smuts* Trustee
* By Power of Attorney
Exhibit 4 Under Form N-1A
Exhibit 3(c) Under Item 601/Reg. S-K
SIGNET SELECT FUNDS
SIGNET SELECT TAX-FREE MONEY MARKET FUND
Number
Shares
_____
_____
Account No. Alpha Code Organized Under the See Reverse Side For
Laws of the Certain Definitions
Commonwealth of
Massachusetts
THIS IS TO CERTIFY THAT is
the owner of
CUSIP (applied for)
Fully Paid and Non-Assessable Shares of Beneficial Interest of the SIGNET
SELECT TAX-FREE MONEY MARKET FUND portfolio of SIGNET SELECT FUNDS,
hereafter called the Trust, transferable on the books of the Trust by the
owner in person or by duly authorized attorney upon surrender of this
certificate properly endorsed.
The shares represented hereby are issued and shall be held subject to
the provisions of the Declaration of Trust and By-Laws of the Trust and all
amendments thereto, all of which the holder by acceptance hereof assents.
This Certificate is not valid unless countersigned by the Transfer
Agent.
IN WITNESS WHEREOF, the Trust has caused this Certificate to be signed
in its name by its proper officers and to be sealed with its seal.
Dated: SIGNET SELECT FUNDS
Corporate Seal
1990
Massachusetts
/s/ Edward C. Gonzales
/s/ John F. Donahue
President and Treasurer
Chairman
Countersigned: Federated Services
Company
Transfer Agent
By:
Authorized Signature
The following abbreviations, when used in the inscription on the face of
this Certificate, shall be construed as though they were written out in full
according to applicable laws or regulations;
TEN COM - as tenants in common UNIF GIFT MIN ACT-...Custodian...
TEN ENT - as tenants by the entireties (Cust) (Minors)
JT TEN - as joint tenants with right of under Uniform Gifts to Minors
survivorship and not as tenants Act.............................
in common (State)
Additional abbreviations may also be used though not in the above list.
For value received__________ hereby sell, assign, and transfer unto
Please insert social security or other
identifying number of assignee
______________________________________
_____________________________________________________________________________
(Please print or typewrite name and address, including zip code, of
assignee)
_____________________________________________________________________________
_____________________________________________________________________________
______________________________________________________________________
shares
of beneficial interest represented by the within Certificate, and do hereby
irrevocably constitute and appoint
__________________________________________
_____________________________________________________________________________
to transfer the said shares on the books of the within named Trust with full
power of substitution in the premises.
Dated______________________
NOTICE:______________________________
The signature to this assignment must
correspond with the name as written upon
the face of the certificate in every
particular, without alteration or
enlargement or any change whatever.
All persons dealing with SIGNET SELECT FUNDS, a Massachusetts business
trust, must look solely to the Trust property for the enforcement of any
claim against the Trust, as the Trustees, officers, agents or shareholders
of the Trust assume no personal liability whatsoever for obligations entered
into on behalf of the Trust.
THIS SPACE MUST NOT BE COVERED IN ANY WAY
DOCUMENT DESCRIPTION - SPECIMEN STOCK CERTIFICATE
Page One
A. The Certificate is outlined by an ______ one-half inch border.
B. The number in the upper left-hand corner and the number of shares in
the upper right-hand corner are outlined by octagonal boxes.
C. The cusip number in the middle right-hand area of the page is boxed.
D. The Massachusetts corporate seal appears in the bottom middle of the
page.
Page Two
The social security or other identifying number of the assignee
appears in a box in the top-third upper-left area of the page.
