BAYFUNDS MONEY MARKET PORTFOLIO
BAYFUNDS U.S. TREASURY MONEY MARKET PORTFOLIO
INVESTMENT SHARES
Supplement to Combined Prospectus dated April 22, 1994
1. Please replace the "Money Market Funds - Summary of Fund
Expenses" found on page 2 of the prospectus with the
following:
Investment Shares Money Market Treasury
Shareholder Transaction Expenses Fund Fund
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price) None None
Maximum Sales Load Imposed on Reinvested Dividends
(as a percentage of offering price) None None
Contingent Deferred Sales Charge
(as a percentage of original
purchase price or redemption
proceeds, as applicable) None None
Redemption Fees (as a percentage of amount
redeemed, if applicable) None None
Exchange Fees None None
Annual Investment Shares Operating Expenses
(As a percentage of average net assets)
Management Fees (after waiver) (1) 0.36% 0.20%
12b-1 Fees None None
Total Other Expenses 0.46% 0.44%
Shareholder Servicing Fees (after waiver) (2) 0.18% 0.25%
Total Investment Shares Operating Expenses (3) 0.82% 0.64%
(1)The management fee has been reduced to
reflect the voluntary waiver of the
management fee for the Money Market Fund.
The adviser can terminate this voluntary waiver at any time at its sole
discretion. The maximum management fee for the Money Market Fund is 0.40%.
(2)The Funds can pay up to 0.25% of Investment Shares average daily net assets
for shareholders servicing agent fees. See "Shareholder Servicing
Arrangements."
(3)The Total Investment Shares Operating Expenses would be 0.93% for the Money
Market Fund, absent the voluntary waiver of expenses described in
notes (1) and (2) above.
The Annual Investment Shares Operating Expenses for the Money
Market Fund and Treasury Fund were 0.62% and 0.62%,
respectively, for the fiscal year ended December 31, 1993. The
Operating Expenses in the table above are based on estimated
expenses expected during the fiscal year ending December 31,
1994.
The above table can help you to understand the various costs
and expenses that a shareholder of Investment Shares will bear,
either directly or indirectly. For more complete descriptions
of the various costs and expenses, see "BayFunds Information"
and "Investing in Shares." Wire-transferred redemptions may be
subject to additional fees.
EXAMPLE
You would pay the following expenses on a
$1,000 investment assuming (1) 5% annual Money
return and (2) redemption at the end of each
time period. As noted in the table above, Market Treasury
the Funds charge no redemption fees for
Investment Shares. Fund Fund
1 Year $8 $7
3 Years $26 $20
5 Years $46 $36
10 Years $101 $80
The above example should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown.
The information set forth in the foregoing table and example
relates only to Money Market Fund and Treasury Fund Investment
Shares. The Funds also offer another class of shares called
Trust Shares and Institutional Shares, respectively. Trust
Shares of the Money Market Fund and Institutional Shares of the
Treasury Fund and Investment Shares of both Funds are generally
subject to the same expenses. However, Trust Shares and
Institutional Shares are not subject to a shareholder servicing
fee. See "Other Classes of Shares."
August 29, 1994
FEDERATED SECURITIES CORP.
Distributor
G00508-02-IV (8/94)
BAYFUNDS MONEY MARKET PORTFOLIO
TRUST SHARES
BAYFUNDS U.S. TREASURY MONEY MARKET PORTFOLIO
INSTITUTIONAL SHARES
Supplement to Combined Prospectus dated April 22, 1994
1. Please replace the "Money Market Funds - Summary of Fund
Expenses" found on page 2 of the prospectus with the
following:
Money Market Fund Treasury Fund
Shareholder Transaction Expenses Trust Shares Institutional Shares
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price) None None
Maximum Sales Load Imposed on Reinvested
Dividends (as a percentage of
offering price) None None
Contingent Deferred Sales Charge
(as a percentage of original purchase
price or redemption proceeds, as
applicable) None None
Redemption Fees (as a percentage of
amount redeemed, if applicable) None None
Exchange Fees None None
Annual Operating Expenses
(As a percentage of average net assets)
Management Fees (after waiver) (1) 0.36% 0.20%
12b-1 Fees None None
Total Other Expenses 0.28% 0.19%
Total Operating Expenses (2) 0.64% 0.39%
(1)The management fee has been reduced to reflect the voluntary waiver of the
management fee for the Money Market Fund. The adviser can terminate
this voluntary waiver at any time at its sole discretion.
The maximum management fee for the Money Market Fund is 0.40%.
(2)Total Operating Expenses for the Money Market Fund Trust Shares would be
0.68% absent the voluntary waiver described in note (1) above.
The Annual Operating Expenses for the Money Market Fund Trust
Shares and Treasury Fund Institutional Shares were 0.59% and
0.35%, respectively, for the fiscal year ended December 31,
1993. The Annual Operating Expenses in the table above are
based on estimated expenses expected during the fiscal year
ending December 31, 1994.
The above table can help you to understand the various costs
and expenses that a shareholder of Money Market Fund Trust
Shares and Treasury Fund Institutional Shares will bear, either
directly or indirectly. For more complete descriptions of the
various costs and expenses, see "BayFunds Information" and
"Investing in Shares." Wire-transferred redemptions may be
subject to additional fees.
EXAMPLE
You would pay the following expenses
on a $1,000 investment assuming
(1) 5% annual return and
(2) redemption at the end of
each time period. Money Market Fund Treasury Fund
The Funds charge no redemption fees. Trust Shares Institutional Shares
1 Year $7 $4
3 Years $20 $13
5 Years $36 $22
10 Years $80 $49
The above example should not be considered a representation of past or future
expenses. Actual expenses may be greater or less than those shown.
The information set forth in the foregoing table and example
relates only to Money Market Fund Trust Shares and Treasury Fund
Institutional Shares. The Funds also offer another class of
shares called Investment Shares. Money Market Fund Trust Shares
and Investment Shares and Treasury Fund Institutional Shares and
Investment Shares are subject to the same expenses. However,
Investment Shares of both Funds are subject to a shareholder
servicing fee. See "Other Classes of Shares."
August 29, 1994
FEDERATED SECURITIES CORP.
Distributor
G00508-01-A (8/94)
