ALEXANDER HAMILTON MUNICIPAL INCOME FUND
(A PORTFOLIO OF ALEXANDER HAMILTON FUNDS)
Supplement to Prospectus dated February 10, 1994
On page 16 of the prospectus, following the sub-section entitled "Accounts
with Low Balances," please add the following:
Redemption in Kind
The Trust has elected to be governed by Rule 18f-1 of the Investment Company
Act of 1940 under which the Trust is obligated to redeem shares in cash up
to the lesser of $250,000 or 1% of a portfolio's net asset value, whichever
is less, for any one shareholder within a 90-day period. To the extent
available, such securities will be readily marketable.
Any redemption beyond this amount will also be in cash unless the Trustees
determine that payments should be in kind. In such a case, the Trust will
pay all or a portion of the remainder of the redemption in portfolio
instruments, valued in the same way that net asset value is determined. The
portfolio instruments will be selected in a manner that the Trustees deem
fair and equitable.
Redemption in kind is not as liquid as a cash redemption. If redemption is
made in kind, shareholders receiving their securities and selling them
before their maturity could receive less than the redemption value of their
securities and could incur certain transaction costs.
November 28, 1994
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
014622203
007136 (11/94)
