THE VIRTUS FUNDS
INVESTMENT SHARES
TRUST SHARES
SUPPLEMENT TO PROSPECTUS DATED MARCH 1, 1995
1. Please delete the section entitled "Investing in Securities of Other
Investment Companies" on page 16 of the prospectus, and replace it with
the following:
"INVESTING IN SECURITIES OF OTHER INVESTMENT COMPANIES
The Funds may invest in the securities of other investment
companies, but will not own more than 3% of the total outstanding
voting stock of any investment company, invest more than 5% of
total assets in any one investment company, or invest more than
10% of total assets in investment companies in general. The Funds
will invest in other investment companies primarily for the
purpose of investing short-term cash which has not yet been
invested in other portfolio instruments. It should be noted that
investment companies incur certain expenses, and therefore, any
investment by a Fund in shares of another investment company would
be subject to certain duplicate expenses, particularly transfer
agent and custodian fees. The adviser will waive its investment
advisory fee on assets invested in securities of open-end
investment companies."
2. Please delete the last sentence of the third paragraph under the heading
entitled "Synopsis" on page 1, and replace it with the following:
"The Funds are advised by Virtus Capital Management, Inc."
3. Effective March 6, 1995, a new portfolio of the Trust, The Strategic
Stock Fund, will offer a single class 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, diversified portfolio investing primarily in common stocks of
large, medium and small capitalization companies. The shares will be
offered pursuant to a separate prospectus.
March 15, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
G00564-08 (3/95)
