SOUTHTRUST VULCAN FUNDS
TREASURY OBLIGATIONS MONEY MARKET FUND
STOCK FUND
BOND FUND
- --------------------------------------------------------------------------------
SUPPLEMENT TO PROSPECTUS DATED JUNE 30, 1995.
A. Please delete the "Expense Summary" table on page 2 of the prospectus and
replace it with the following:
EXPENSE SUMMARY
Below is a summary of the projected expenses of each Fund for the current
fiscal year.
<TABLE>
<CAPTION>
TREASURY OBLIGATIONS
MONEY MARKET FUND STOCK FUND BOND FUND
<S> <C> <C> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price)...................... None 3.50% 3.50%
Maximum Sales Load Imposed on Reinvested Dividends
(as a percentage of offering price)...................... None None None
Contingent Deferred Sales Charges (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>
* 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>
TREASURY OBLIGATIONS
MONEY MARKET FUND STOCK FUND BOND FUND
<S> <C> <C> <C>
ANNUAL OPERATING EXPENSES (AS A PERCENTAGE OF PROJECTED AVERAGE NET ASSETS)+
Advisory Fees After Waivers*.................................... 0.30% 0.65% 0.55%
12b-1 Fees...................................................... None None None
Other Expenses.................................................. 0.20% 0.22% 0.33%
------ ------ ------
Total Fund Operating Expenses After Waivers..................... 0.50% 0.87% 0.88%
====== ====== ======
</TABLE>
* As stated under "Management of the Funds" in this Prospectus, the
Company has agreed to pay an advisory fee to the Adviser at an annual
rate of 0.50% of the average daily net assets of the TREASURY
OBLIGATIONS MONEY MARKET FUND, 0.75% with respect to the STOCK FUND,
and 0.60% with respect to the BOND FUND. Absent the voluntary waivers
by the Administrator, Other Expenses are expected to be 0.21%, 0.25%
and 0.36% 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 0.71%, 1.00%
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 0.43%, 0.74% and
0.75%, respectively, for the fiscal year ending April 30, 1995. Had the
Adviser and Administrator not voluntarily waived their fees, the annual
operating expenses would have been 0.73%, 1.13%, and 1.03%,
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, 1996. During the course of this period, expenses may be more
or less than the average amount shown.
EXAMPLE:
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:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
Treasury Obligations Money Market Fund............................... $ 5 $ 16 $ 28 $ 63
Stock Fund........................................................... $ 44 $ 62 $ 82 $ 138
Bond Fund............................................................ $ 44 $ 62 $ 82 $ 140
</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, 1996.
B. Please delete the sub-section entitled "INVESTMENT COMPANY SECURITIES"
under the "INVESTMENT ACTIVITIES" section on page 5 of the prospectus, in
its entirety and insert the following:
"INVESTMENT COMPANY SECURITIES. The Funds may invest in the securities of
other investment companies. The TREASURY MONEY MARKET FUND will invest only
in money market funds that seek to maintain a $1.00 net asset value per
share and that invest in short-term debt securities of the same or better
quality as those in which the TREASURY MONEY MARKET FUND may invest. The
Funds will limit their investment in other investment companies to not more
than 3% of the total outstanding voting stock of any investment company,
will invest no more than 5% of its total assets in any one investment
company, and will invest no more than 10% of its total assets in investment
companies in general. The Funds (other than TREASURY MONEY MARKET FUND)
will purchase securities of closed-end investment companies only in open
market transactions involving only customary brokers' commissions. However,
these limitations are not applicable if the securities are acquired in a
merger, consolidation, reorganization, or acquisition of assets. While it
is a policy to waive advisory fees on Fund assets invested in securities of
other open-end investment companies, it should be noted that investment
companies incur certain expenses such as custodian and transfer agency
fees, and, therefore, any investment by the Funds in shares of other
investment companies would be subject to such duplicate expenses."
C. Under the sub-section entitled "SALES CHARGE" under the section entitled
"HOW TO PURCHASE, EXCHANGE AND REDEEM SHARES", on page 12 of the prospectus,
please delete the sales charge table and replace it with the following:
<TABLE>
<CAPTION>
SALES CHARGE
SALES CHARGE AS % OF DEALER ALLOWANCE
AS % OF NET AMOUNT AS % OF
OFFERING PRICE INVESTED OFFERING PRICE
<S> <C> <C> <C>
$0 but less than $100,000....................... 3.50% 3.63% 3.00%
$100,000 but less than $250,000................. 3.00% 3.09% 2.50%
$250,000 but less than $500,000................. 2.50% 2.56% 2.00%
$500,000 but less than $1,000,000............... 2.00% 2.04% 1.50%
$1,000,000 or more.............................. 0* 0% 0%
</TABLE>
*A redemption fee of 1% may be imposed on certain redemptions made within
one year of purchase. See "Redemption of Shares"--"Redemption Fee."
D. The first two paragraphs under the sub-section entitled "LETTER OF INTENT"
under the section entitled "HOW TO PURCHASE, EXCHANGE AND REDEEM SHARES", on
page 13 of the prospectus, are deleted in their entirety and replaced with
the following:
"LETTER OF INTENT. If a Shareholder intends to purchase at least $100,000 of
shares in the BOND FUND or $50,000 of shares in the STOCK FUND over the next
13 months, the sales charge may be reduced by signing a Letter of Intent to
that effect. This Letter of Intent includes a provision for a sales charge
adjustment depending on the amount actually purchased within the 13-month
period and a provision for the custodian to hold 3.50% of the total amount
intended to be purchased in escrow (in shares) until such purchase is
completed.
E. The first two sentences of the sub-section entitled "EXCHANGING SHARES" on
page 14 of the prospectus under the section "HOW TO PURCHASE, EXCHANGE AND
REDEEM SHARES" are deleted in their entirety and replaced by the following:
"EXCHANGING SHARES. Shareholders who have purchased shares of the BOND FUND
or the STOCK FUND (a "load Fund") (including shares acquired through a
reinvestment of a dividend or distribution on such shares) may exchange
those shares for shares of another load Fund or a Liberty Fund identified
previously without paying an additional exchange or sales charge."
F. Please delete the first paragraph under the section entitled "PRICING OF
SHARES" on page 17 of the prospectus in its entirety and replace it with the
following:
"On Monday through Friday, the net asset value of the BOND FUND and STOCK
FUND is determined once daily at the close of trading on the New York Stock
Exchange, usually 4:00 p.m. (Eastern time), and the net asset value of the
TREASURY MONEY MARKET FUND is determined twice daily at 12:00 noon and 4:00
p.m. (Eastern time), 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 are
tendered for redemption and no orders to purchase shares are received; or
(iii) the following holidays: New Year's Day, Presidents' Day, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas
Day. The Funds' net asset value is calculated by adding the value of all
securities and other assets of the Fund, subtracting its liabilities and
dividing the result by the number of outstanding shares."
March 1, 1996
[LOGO] FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
CUSIP 844734202
CUSIP 844734301
CUSIP 844734103
G01341-03 (2/96) [RECYCLED PAPER LOGO] STH601095
SOUTHTRUST VULCAN FUNDS
INCOME FUND
SUPPLEMENT TO PROSPECTUS DATED DECEMBER 15, 1995.
A. Please delete in its entirety the sub-section entitled "INVESTMENT
COMPANY SECURITIES" under the "INVESTMENT ACTIVITIES" section on page 8 of
the prospectus, and insert the following:
"INVESTMENT COMPANY SECURITIES. The Fund may invest in the securities
of other investment companies. The Fund will limit its investment in other
investment companies to not more than 3% of the total outstanding voting
stock of any investment company, will invest no more than 5% of its total
assets in any one investment company, and will invest no more than 10% of
its total assets in investment companies in general. The FUND will
purchase securities of closed-end investment companies only in open market
transactions involving only customary brokers' commissions. However, these
limitations are not applicable if the securities are acquired in a merger,
consolidation, reorganization, or acquisition of assets. While it is a
policy to waive advisory fees on Fund assets invested in securities of
other open-end investment companies, it should be noted that investment
companies incur certain expenses such as custodian and transfer agency
fees, and, therefore, any investment by the Fund in shares of other
investment companies would be subject to such duplicate expenses."
B. The first two sentences of the sub-section entitled "EXCHANGING
SHARES" on page 14 under the section "HOW TO PURCHASE, EXCHANGE AND REDEEM
SHARES"are deleted in their entirety and replaced by the following:
"EXCHANGING SHARES. Shareholders who have purchased shares of the
Fund (including shares acquired through a reinvestment of a dividend or
distribution on such shares) may exchange those shares for shares of
another load Portfolio or a Liberty Fund identified previously without
paying an additional exchange or sales charge."
C. Please delete the first paragraph under the section entitled "PRICING
OF SHARES" on page 16 of the prospectus in its entirety and replace it with
the following:
"On Monday through Friday, the net asset value of the Fund is
determined once daily at the close of trading on the New York Stock
Exchange, usually 4:00 pm (Eastern time), 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 are tendered for redemption and no orders to
purchase shares are received; or (iii) the following holidays: New Year's
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day, and Christmas Day. The Fund's net asset value is
calculated by adding the value of all securities and other assets of the
Fund, subtracting its liabilities and dividing the result by the number of
outstanding shares."
March 1, 1996
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
Federated Investors Tower
PITTSBURGH, PA 15222-3779
CUSIP 844734400
G01341-04 (2/96) STH601375
