MARSHALL SHORT-TERM INCOME FUND
MARSHALL GOVERNMENT INCOME FUND
MARSHALL INTERMEDIATE BOND FUND
(PORTFOLIOS OF MARSHALL FUNDS, INC.)
Supplement to Income Funds Combined Prospectus dated December 31, 1993
1) Please add the following as the third paragraph under the section
"Adviser's Background" on page 15:
"Mark D. Pittman, C.F.A., who is an Assistant Vice President of
M&I Investment Management Corp., co-manages the Short-Term Income
Fund as of July 1994. Mr. Pittman joined M&I Investment
Management Corp. in June 1994. Prior to that time, he spent five
years with Valley Trust Company managing fixed income portfolios
and common trust funds. In addition, he was a member of the
Valley Trust Company Investment Committee and Asset Allocation
Committee. Mr. Pittman is a Chartered Financial Analyst and holds
M.B.A. and B.B.A. degrees in Finance from the University of
Wisconsin-Madison."
2) Please delete the second sentence of the second paragraph of the sub-
section entitled "Share Purchases" under the section "Investing in the Funds"
on page 17 and replace it with the following:
"Texas residents must purchase shares through M&I Brokerage
Services, Inc. at 1-800-236-8560."
3) An investor's minimum initial investment and minimum account balance for
the Short-Term Income Fund has been lowered from $25,000 to $1,000. Please
make this change in the following sections:
A. "Synopsis" on page 1;
B. "Minimum Investment Required" on page 17;
C. "Exchange Privilege" on page 18; and
D. "Accounts with Low Balances" on page 20.
4) Please add the following before the section entitled "Accounts with Low
Balances" on page 20 and insert the heading "Redemption Before Purchase
Instruments Clear" into the Table of Contents:
"Redemption Before Purchase Instruments Clear
When shares of a Fund are purchased by check or through the
Automated Clearing House system, the proceeds from the redemption
of those shares (whether redeemed by mail or by telephone) are not
available, and the shares may not be exchanged, until MFIS is
reasonably certain that the purchase check has cleared, which
could take up to seven calendar days."
July 25,1994
FEDERATED SECURITIES CORP.
Distributor
G00479-01 (7/94)
SRI ID# MAR404047
