Sunburst short-intermediate government bond fund
(A Portfolio of Sunburst Funds )
Supplement to Prospectus dated October 28, 1993
1. On page 1 of the prospectus, please make the following changes to the
"Summary of Fund Expenses":
(a) Delete the first
entry under the section entitled "Shareholder Transaction
Expenses" and insert the following information in its place:
"Maximum Sales Load Imposed on Purchases
(as a percentage of offering
price).....................................................
................1.00%"
(b) Delete the
current 1 year and 3 year figures in the "Example" and
replace them with the following:
"EXAMPLE 1 year 3
years
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. The Fund charges no redemption
fees.......$20 $40"
2. On page 10 of the prospectus, please delete the first sentence and the
subsequent table in the section entitled "What Shares Cost," and replace
them with the following:
"Shares are sold at their net asset value next determined after
an order is received, plus a sales charge of 1.00% of the public
offering price (1.01% of the net amount invested). Any
unfulfilled purchases under a previously executed letter of
intent will be subject to this 1.00% sales charge."
3. On page 11 of the prospectus, please delete the first paragraph under the
section entitled "Reducing the Sales Charge" and the subsequent
subsections entitled "Quantity Discounts and Accumulated Purchases" and
"Letter of Intent," and replace the deleted language with the following:
"The sales charge can be reduced on the purchase of Fund shares
by using the reinvestment privilege."
April 15, 1994
FEDERATED SECURITIES CORP.
Distributor
4040506A(4/94)
