SUNBURST SHORT-INTERMEDIATE GOVERNMENT BOND FUND
(A PORTFOLIO OF SUNBURST FUNDS)
Supplement to Prospectus dated January 31, 1995
On February 16, 1995, the Board of Trustees of Sunburst Funds approved a
proposed Agreement and Plan of Reorganization (the "Agreement") for the merger
of Sunburst Short-Intermediate Government Bond Fund (the "Fund") into the
Institutional Shares of Federated Short-Intermediate Government Trust
("FSIGT"). The Agreement contemplates that FSIGT would acquire all of the net
assets of the Fund in exchange for Institutional Shares of FSIGT, which would
be distributed pro rata by the Fund to its shareholders in complete
liquidation and dissolution of the Fund. The Agreement also contemplates that
Fund shareholders will not recognize any gain or loss because the merger will
be a tax-free reorganization.
The Agreement will be presented for the approval of shareholders of the Fund
at a Special Meeting of Shareholders to be held on or about June 29, 1995. It
is anticipated that shareholders of record as of May 16, 1995, will receive a
proxy statement discussing the terms of and the reasons for the merger in
detail, and will be entitled to vote at the Special Meeting.
March 2, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
867094104
008066 (3/95)
SRT 502090
