SUNBURST SHORT-INTERMEDIATE GOVERNMENT BOND FUND
(A PORTFOLIO OF SUNBURST FUNDS)
Supplement to Prospectus dated October 28, 1993
Sunburst Bank, Mississippi, ("Adviser") is the investment adviser for
Sunburst Short-Intermediate Government Bond Fund (the "Fund") and is a
subsidiary of Grenada Sunburst System Corporation ("GSSC"). GSSC recently
executed a definitive agreement with Union Planters Corporation ("UPC"), a
bank holding company headquartered in Memphis, Tennessee, for its acquisition
by UPC (the "Acquisition"). As a result, upon completion of the Acquisition,
all existing subsidiaries of GSSC, including the Adviser, would become
subsidiaries of UPC. The Acquisition is expected to be completed on or
before December 31, 1994, pending approval by both companies' shareholders as
well as the receipt of various regulatory approvals and the completion of
other closing conditions.
Under provisions of the Investment Company Act of 1940, completion of the
Acquisition would result in an assignment, and automatic termination, of the
Adviser's current investment advisory contract with the Fund (the
"Termination"). Accordingly, prior to the completion of the Acquisition, the
Board of Trustees of the Fund will meet to consider matters relating to the
Termination. Additional information will be forthcoming as soon as
practicable after the Trustees' decision on these matters.
August 5, 1994
FEDERATED SECURITIES CORP.
Distributor
G00521-01 (8/94)
