SOUTHTRUST VULCAN TREASURY OBLIGATIONS MONEY MARKET FUND
SOUTHTRUST VULCAN BOND FUND
SOUTHTRUST VULCAN STOCK FUND
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SUPPLEMENT TO PROSPECTUS DATED JUNE 30, 1994
1. Please replace the Expense Summary on page 2 with the following Expense
Summary:
"EXPENSE SUMMARY
Below is a summary of the projected expenses of each Fund for the
current fiscal year.
<TABLE>
<CAPTION>
TREASURY OBLIGATIONS
SHAREHOLDER TRANSACTION EXPENSES MONEY MARKET FUND STOCK FUND BOND FUND
<S> <C> <C> <C>
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price).......... None 4.50% 4.00%
Maximum Sales Load Imposed on Reinvested
Dividends (as a percentage of offering
price)......................................... None None None
Deferred Sales Load (as a percentage of
original
purchase price or redemption proceeds,
as applicable)............................... None None None
Redemption Fee (as a percentage of amount
redeemed, if applicable)..................... None 1.00%* 1.00%*
Exchange Fee................................... None None None
</TABLE>
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* Applies only to shares of the STOCK FUND and the BOND FUND purchased
at net asset value which are redeemed within one year of purchase.
See "How to Purchase, Exchange, and Redeem Shares."
The following Expense Table and Example are intended to assist
investors in understanding the expenses the Funds pay and that
investors bear directly or indirectly.
<TABLE>
<CAPTION>
ANNUAL OPERATING EXPENSES (as a percentage TREASURY OBLIGATIONS
of projected average net assets)+ MONEY MARKET FUND STOCK FUND BOND FUND
<S> <C> <C> <C>
Advisory Fees After Waivers*................... 0.30% 0.55% 0.55%
12b-1 Fees..................................... None None None
Other Expenses................................. 0.20% 0.32% 0.31%
------ ------ ------
Total Fund Operating Expenses After Waivers.... 0.50% 0.87% 0.86%
------ ------ ------
</TABLE>
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* As stated below under "Management of the Funds," the Company has
agreed to pay an advisory fee to the Adviser at an annual rate of
.50% of the average daily net assets of the TREASURY OBLIGATIONS
MONEY MARKET FUND, .75% with respect to the STOCK FUND, and .60% with
respect to the BOND FUND. Absent the voluntary waivers by the
Administrator, Other Expenses are expected to be .23%, .37%, and .36%
for the TREASURY OBLIGATIONS MONEY MARKET, STOCK and BOND FUNDS,
respectively. The Administrator may terminate these waivers at any
time at its sole discretion. Absent the anticipated voluntary fee
waivers by the Adviser and by the Administrator, Total Fund Operating
Expenses for the current fiscal year are expected to be 0.73%, 1.12%
and 0.96% for the TREASURY OBLIGATIONS MONEY MARKET, STOCK and BOND
FUNDS, respectively.
+ The Annual Fund Operating Expenses for the TREASURY OBLIGATIONS MONEY
MARKET FUND, the STOCK FUND and the BOND FUND were 0.40%, 0.48% and
0.51%, respectively, for the fiscal year ending April 30, 1994. Had
the Adviser not voluntarily waived its fee, the annual operating
expenses would have been 0.73%, 1.17%, and 1.09%, respectively. The
Annual Fund Operating Expenses in the table above are based on
expenses expected to be incurred during the fiscal year ending April
30, 1995. During the course of this period, expenses may be more or
less than the average amount shown.
<TABLE>
<CAPTION>
EXAMPLE
<S> <C> <C> <C> <C>
An investor would pay the following expenses on a $1,000 investment, assuming (1) a hypothetical 5%
annual return and (2) redemption at the end of each time period:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
Treasury Obligations Money Market Fund......................... $5 $16 $28 $ 63
Stock Fund..................................................... $53 $72 $91 $147
Bond Fund...................................................... $48 $66 $86 $142
</TABLE>
SouthTrust Bank or a SouthTrust Vulcan Funds Dealer may charge
customer accounts for other services provided to investors.
The amount of "Other Expenses" in the table above is based on
estimated expenses and projected assets for the current fiscal year.
See "Management of the Funds" in this Prospectus and the Statement of
Additional Information for a further description of the Funds'
operating expenses.
THE EXAMPLE SHOWN ABOVE SHOULD NOT BE CONSIDERED A REPRESENTATION OF
FUTURE INVESTMENT RETURN OR OPERATING EXPENSES. ACTUAL INVESTMENT
RETURN AND OPERATING EXPENSES MAY BE MORE OR LESS THAN THOSE SHOWN. THE
HYPOTHETICAL RETURNS IN THE EXAMPLE REFLECT FEE WAIVERS AT THE
ANTICIPATED RATES. THIS EXAMPLE IS BASED ON ESTIMATED DATA FOR THE
COMPANY'S FISCAL YEAR ENDING APRIL 30, 1995."
2. Please replace the paragraph "Investment Company Securities" on page 5 with
the following:
"INVESTMENT COMPANY SECURITIES. In connection with the management of
daily cash positions, each Fund may invest in securities issued by
other investment companies that invest in short-term debt securities
and that seek to maintain a $1.00 net asset value per share (i.e.,
"money market funds"). Securities of other investment companies will be
acquired within limits prescribed by the Investment Company Act of
1940, as amended (the "1940 Act"). These limitations, among other
matters, restrict investments in securities of other investment
companies to no more than 10% of the value of a Fund's total assets,
with no more than 5% invested in the securities of any one investment
company. As a shareholder of another investment company, a Fund would
bear along with other shareholders in that investment company, its pro
rata portion of the other investment company's expenses, including
advisory fees. When investing in other investment companies, certain
fund expenses, such as custodian fees and administrative fees, may be
duplicated (that is, these expenses would be in addition to the
expenses each Fund bears directly in connection with its own
operations). The Adviser will waive its investment advisory fee on
those Fund assets that are invested in securities of other investment
companies. The TREASURY MONEY FUND will invest only in money market
funds which invest in securities of the same or better quality as those
in which the TREASURY MONEY FUND may invest."
December 28, 1994
[LOGO] FEDERATED SECURITIES CORP.
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Distributor
844734103
844734202
844734301
007409 (12/94)
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