FEDERATED MANAGEMENT AGGRESSIVE GROWTH FUND
(A Portfolio of Managed Series Trust)
Select Shares
Supplement to Prospectus Dated March 11, 1994 for Missouri Investors
1. Replace the section "Small Company Stocks" on pages 3 and 4 of the
prospectus with the following:
Small Company Stocks. Small company stocks are common stocks
and securities convertible into or exchangeable for common
stocks, such as rights and warrants, of companies with a market
capitalization (market price x number of shares outstanding)
below the top 1,000 stocks that comprise the large and mid-range
capitalization sector of the United States equity market. These
stocks are comparable to, but not limited to, the stocks
comprising the Russell 2000 Index, an index of small
capitalization stocks. The Fund may invest up to 40 percent of
its total assets in small company stocks.
Investment Risks. Stocks in the small capitalization
sector of the United States equity market have
historically been more volatile in price than larger
capitalization stocks, such as those included in the
Standard & Poor's 500 Index. This is because, among other
things, small companies have less certain growth prospects
than larger companies; have a lower degree of liquidity in
the equity market; and tend to have a greater sensitivity
to changing economic conditions. Further, in addition to
exhibiting greater volatility, the stocks of small
companies may, to some degree, fluctuate independently of
the stocks of large companies; that is, the stocks of
small companies may decline in price as the price of large
company stocks rises or vice versa.
2. The following should be added as a subsection under the section "High Yield
Corporate Bonds" on page 5 of the prospectus:
Investment Risks. Lower-rated securities will usually offer
higher yields than higher-rated securities. However, there is
more risk associated with these investments. This is because of
reduced creditworthiness and increased risk of default. Lower-
rated securities generally tend to reflect short-term corporate
and market developments to a greater extent than higher rated
securities which react primarily to fluctuations in the general
level of interest rates. Short-term corporate and market
developments affecting the price or liquidity of lower-rated
securities could include adverse news affecting major issuers,
underwriters, or dealers of lower-rated corporate debt
obligations. In addition, since there are fewer investors in
lower-rated securities, it may be harder to sell the securities
at an optimum time. As a result of these factors, lower-rated
securities tend to have more price volatility and carry more
risk to principal than higher-rated securities.
Many corporate debt obligations, including many lower-rated
bonds, permit the issuers to call the security and thereby
redeem their obligations earlier than the stated maturity dates.
Issuers are more likely to call bonds during periods of
declining interest rates. In these cases, if the Fund owns a
bond which is called, the Fund will receive its return of
principal earlier than expected and would likely be required to
reinvest the proceeds at lower interest rates, thus reducing
income to the Fund.
July 11, 1994
FEDERATED SECURITIES CORP.
Distributor
56166K800
G00450-02-SEL (7/94)
FEDERATED MANAGED AGRESSIVE GROWTH FUND
(A Portfolio of Managed Series Trust)
Institutional Service Shares
Supplement to Prospectus Dated March 11, 1994 for Missouri Investors
1. Replace the section "Small Company Stocks" on pages 3 and 4 of the
prospectus with the following:
Small Company Stocks. Small company stocks are common stocks
and securities convertible into or exchangeable for common
stocks, such as rights and warrants, of companies with a market
capitalization (market price x number of shares outstanding)
below the top 1,000 stocks that comprise the large and mid-range
capitalization sector of the United States equity market. These
stocks are comparable to, but not limited to, the stocks
comprising the Russell 2000 Index, an index of small
capitalization stocks. The Fund may invest up to 40 percent of
its total assets in small company stocks.
Investment Risks. Stocks in the small capitalization
sector of the United States equity market have
historically been more volatile in price than larger
capitalization stocks, such as those included in the
Standard & Poor's 500 Index. This is because, among other
things, small companies have less certain growth prospects
than larger companies; have a lower degree of liquidity in
the equity market; and tend to have a greater sensitivity
to changing economic conditions. Further, in addition to
exhibiting greater volatility, the stocks of small
companies may, to some degree, fluctuate independently of
the stocks of large companies; that is, the stocks of
small companies may decline in price as the price of large
company stocks rises or vice versa.
2. The following should be added as a subsection under the section "High Yield
Corporate Bonds" on page 5 of the prospectus:
Investment Risks. Lower-rated securities will usually offer
higher yields than higher-rated securities. However, there is
more risk associated with these investments. This is because of
reduced creditworthiness and increased risk of default. Lower-
rated securities generally tend to reflect short-term corporate
and market developments to a greater extent than higher rated
securities which react primarily to fluctuations in the general
level of interest rates. Short-term corporate and market
developments affecting the price or liquidity of lower-rated
securities could include adverse news affecting major issuers,
underwriters, or dealers of lower-rated corporate debt
obligations. In addition, since there are fewer investors in
lower-rated securities, it may be harder to sell the securities
at an optimum time. As a result of these factors, lower-rated
securities tend to have more price volatility and carry more
risk to principal than higher-rated securities.
Many corporate debt obligations, including many lower-rated
bonds, permit the issuers to call the security and thereby
redeem their obligations earlier than the stated maturity dates.
Issuers are more likely to call bonds during periods of
declining interest rates. In these cases, if the Fund owns a
bond which is called, the Fund will receive its return of
principal earlier than expected and would likely be required to
reinvest the proceeds at lower interest rates, thus reducing
income to the Fund.
July 11, 1994
FEDERATED SECURITIES CORP.
Distributor
56166K701
G00450-01-SS (7/94)
FEDERATED MANAGED GROWTH FUND
(A Portfolio of Managed Series Trust)
Select Shares
Supplement to Prospectus Dated March 11, 1994 for Missouri Investors
1. Replace the section "Small Company Stocks" on page 4 of the prospectus
with the following:
Small Company Stocks. Small company stocks are common stocks
and securities convertible into or exchangeable for common
stocks, such as rights and warrants, of companies with a market
capitalization (market price x number of shares outstanding)
below the top 1,000 stocks that comprise the large and mid-range
capitalization sector of the United States equity market. These
stocks are comparable to, but not limited to, the stocks
comprising the Russell 2000 Index, an index of small
capitalization stocks. The Fund may invest up to 21 percent of
its total assets in small company stocks.
Investment Risks. Stocks in the small capitalization
sector of the United States equity market have
historically been more volatile in price than larger
capitalization stocks, such as those included in the
Standard & Poor's 500 Index. This is because, among other
things, small companies have less certain growth prospects
than larger companies; have a lower degree of liquidity in
the equity market; and tend to have a greater sensitivity
to changing economic conditions. Further, in addition to
exhibiting greater volatility, the stocks of small
companies may, to some degree, fluctuate independently of
the stocks of large companies; that is, the stocks of
small companies may decline in price as the price of large
company stocks rises or vice versa.
2. The following should be added as a subsection under the section "High Yield
Corporate Bonds" on page 5 of the prospectus:
Investment Risks. Lower-rated securities will usually offer
higher yields than higher-rated securities. However, there is
more risk associated with these investments. This is because of
reduced creditworthiness and increased risk of default. Lower-
rated securities generally tend to reflect short-term corporate
and market developments to a greater extent than higher rated
securities which react primarily to fluctuations in the general
level of interest rates. Short-term corporate and market
developments affecting the price or liquidity of lower-rated
securities could include adverse news affecting major issuers,
underwriters, or dealers of lower-rated corporate debt
obligations. In addition, since there are fewer investors in
lower-rated securities, it may be harder to sell the securities
at an optimum time. As a result of these factors, lower-rated
securities tend to have more price volatility and carry more
risk to principal than higher-rated securities.
Many corporate debt obligations, including many lower-rated
bonds, permit the issuers to call the security and thereby
redeem their obligations earlier than the stated maturity dates.
Issuers are more likely to call bonds during periods of
declining interest rates. In these cases, if the Fund owns a
bond which is called, the Fund will receive its return of
principal earlier than expected and would likely be required to
reinvest the proceeds at lower interest rates, thus reducing
income to the Fund.
July 11, 1994
FEDERATED SECURITIES CORP.
Distributor
56166K602
G00451-02-SEL (7/94)
FEDERATED MANAGED GROWTH FUND
(A Portfolio of Managed Series Trust)
Institutional Service Shares
Supplement to Prospectus Dated March 11, 1994 for Missouri Investors
1. Replace the section "Small Company Stocks" on page 4 of the prospectus
with the following:
Small Company Stocks. Small company stocks are common stocks
and securities convertible into or exchangeable for common
stocks, such as rights and warrants, of companies with a market
capitalization (market price x number of shares outstanding)
below the top 1,000 stocks that comprise the large and mid-range
capitalization sector of the United States equity market. These
stocks are comparable to, but not limited to, the stocks
comprising the Russell 2000 Index, an index of small
capitalization stocks. The Fund may invest up to 21 percent of
its total assets in small company stocks.
Investment Risks. Stocks in the small capitalization
sector of the United States equity market have
historically been more volatile in price than larger
capitalization stocks, such as those included in the
Standard & Poor's 500 Index. This is because, among other
things, small companies have less certain growth prospects
than larger companies; have a lower degree of liquidity in
the equity market; and tend to have a greater sensitivity
to changing economic conditions. Further, in addition to
exhibiting greater volatility, the stocks of small
companies may, to some degree, fluctuate independently of
the stocks of large companies; that is, the stocks of
small companies may decline in price as the price of large
company stocks rises or vice versa.
2. The following should be added as a subsection under the section "High Yield
Corporate Bonds" on page 5 of the prospectus:
Investment Risks. Lower-rated securities will usually offer
higher yields than higher-rated securities. However, there is
more risk associated with these investments. This is because of
reduced creditworthiness and increased risk of default. Lower-
rated securities generally tend to reflect short-term corporate
and market developments to a greater extent than higher rated
securities which react primarily to fluctuations in the general
level of interest rates. Short-term corporate and market
developments affecting the price or liquidity of lower-rated
securities could include adverse news affecting major issuers,
underwriters, or dealers of lower-rated corporate debt
obligations. In addition, since there are fewer investors in
lower-rated securities, it may be harder to sell the securities
at an optimum time. As a result of these factors, lower-rated
securities tend to have more price volatility and carry more
risk to principal than higher-rated securities.
Many corporate debt obligations, including many lower-rated
bonds, permit the issuers to call the security and thereby
redeem their obligations earlier than the stated maturity dates.
Issuers are more likely to call bonds during periods of
declining interest rates. In these cases, if the Fund owns a
bond which is called, the Fund will receive its return of
principal earlier than expected and would likely be required to
reinvest the proceeds at lower interest rates, thus reducing
income to the Fund.
July 11, 1994
FEDERATED SECURITIES CORP.
Distributor
56166K503
G00451-01-SS (7/94)
FEDERATED MANAGED GROWTH AND INCOME FUND
(A Portfolio of Managed Series Trust)
Select Shares
Supplement to Prospectus Dated March 11, 1994 for Missouri Investors
1. The following should be added as a subsection under the section "High Yield
Corporate Bonds" on page 4 of the prospectus:
Investment Risks. Lower-rated securities will usually offer
higher yields than higher-rated securities. However, there is
more risk associated with these investments. This is because of
reduced creditworthiness and increased risk of default. Lower-
rated securities generally tend to reflect short-term corporate
and market developments to a greater extent than higher rated
securities which react primarily to fluctuations in the general
level of interest rates. Short-term corporate and market
developments affecting the price or liquidity of lower-rated
securities could include adverse news affecting major issuers,
underwriters, or dealers of lower-rated corporate debt
obligations. In addition, since there are fewer investors in
lower-rated securities, it may be harder to sell the securities
at an optimum time. As a result of these factors, lower-rated
securities tend to have more price volatility and carry more
risk to principal than higher-rated securities.
Many corporate debt obligations, including many lower-rated
bonds, permit the issuers to call the security and thereby
redeem their obligations earlier than the stated maturity dates.
Issuers are more likely to call bonds during periods of
declining interest rates. In these cases, if the Fund owns a
bond which is called, the Fund will receive its return of
principal earlier than expected and would likely be required to
reinvest the proceeds at lower interest rates, thus reducing
income to the Fund.
2. Replace the section "Small Company Stocks" on page 5 of the prospectus
with the following:
Small Company Stocks. Small company stocks are common stocks
and securities convertible into or exchangeable for common
stocks, such as rights and warrants, of companies with a market
capitalization (market price x number of shares outstanding)
below the top 1,000 stocks that comprise the large and mid-range
capitalization sector of the United States equity market. These
stocks are comparable to, but not limited to, the stocks
comprising the Russell 2000 Index, an index of small
capitalization stocks. The Fund may invest up to 7.5 percent of
its total assets in small company stocks.
Investment Risks. Stocks in the small capitalization
sector of the United States equity market have
historically been more volatile in price than larger
capitalization stocks, such as those included in the
Standard & Poor's 500 Index. This is because, among other
things, small companies have less certain growth prospects
than larger companies; have a lower degree of liquidity in
the equity market; and tend to have a greater sensitivity
to changing economic conditions. Further, in addition to
exhibiting greater volatility, the stocks of small
companies may, to some degree, fluctuate independently of
the stocks of large companies; that is, the stocks of
small companies may decline in price as the price of large
company stocks rises or vice versa.
July 11, 1994
FEDERATED SECURITIES CORP.
Distributor
56166K404
G00452-02-SEL (7/94)
FEDERATED MANAGED GROWTH AND INCOME FUND
(A Portfolio of Managed Series Trust)
Institutional Service Shares
Supplement to Prospectus Dated March 11, 1994 for Missouri Investors
1. The following should be added as a subsection under the section "High Yield
Corporate Bonds" on page 4 of the prospectus:
Investment Risks. Lower-rated securities will usually offer
higher yields than higher-rated securities. However, there is
more risk associated with these investments. This is because of
reduced creditworthiness and increased risk of default. Lower-
rated securities generally tend to reflect short-term corporate
and market developments to a greater extent than higher rated
securities which react primarily to fluctuations in the general
level of interest rates. Short-term corporate and market
developments affecting the price or liquidity of lower-rated
securities could include adverse news affecting major issuers,
underwriters, or dealers of lower-rated corporate debt
obligations. In addition, since there are fewer investors in
lower-rated securities, it may be harder to sell the securities
at an optimum time. As a result of these factors, lower-rated
securities tend to have more price volatility and carry more
risk to principal than higher-rated securities.
Many corporate debt obligations, including many lower-rated
bonds, permit the issuers to call the security and thereby
redeem their obligations earlier than the stated maturity dates.
Issuers are more likely to call bonds during periods of
declining interest rates. In these cases, if the Fund owns a
bond which is called, the Fund will receive its return of
principal earlier than expected and would likely be required to
reinvest the proceeds at lower interest rates, thus reducing
income to the Fund.
2. Replace the section "Small Company Stocks" on page 5 of the prospectus
with the following:
Small Company Stocks. Small company stocks are common stocks
and securities convertible into or exchangeable for common
stocks, such as rights and warrants, of companies with a market
capitalization (market price x number of shares outstanding)
below the top 1,000 stocks that comprise the large and mid-range
capitalization sector of the United States equity market. These
stocks are comparable to, but not limited to, the stocks
comprising the Russell 2000 Index, an index of small
capitalization stocks. The Fund may invest up to 7.5 percent of
its total assets in small company stocks.
Investment Risks. Stocks in the small capitalization
sector of the United States equity market have
historically been more volatile in price than larger
capitalization stocks, such as those included in the
Standard & Poor's 500 Index. This is because, among other
things, small companies have less certain growth prospects
than larger companies; have a lower degree of liquidity in
the equity market; and tend to have a greater sensitivity
to changing economic conditions. Further, in addition to
exhibiting greater volatility, the stocks of small
companies may, to some degree, fluctuate independently of
the stocks of large companies; that is, the stocks of
small companies may decline in price as the price of large
company stocks rises or vice versa.
July 11, 1994
FEDERATED SECURITIES CORP.
Distributor
56166K305
G00452-01-SS (7/94)
FEDERATED MANAGED INCOME FUND
(A Portfolio of Managed Series Trust)
Select Shares
Supplement to Prospectus Dated March 11, 1994 for Missouri Investors
The following should be added as a subsection under the section "High Yield
Corporate Bonds" on page 4 of the prospectus:
Investment Risks. Lower-rated securities will usually offer
higher yields than higher-rated securities. However, there is
more risk associated with these investments. This is because of
reduced creditworthiness and increased risk of default. Lower-
rated securities generally tend to reflect short-term corporate
and market developments to a greater extent than higher rated
securities which react primarily to fluctuations in the general
level of interest rates. Short-term corporate and market
developments affecting the price or liquidity of lower-rated
securities could include adverse news affecting major issuers,
underwriters, or dealers of lower-rated corporate debt
obligations. In addition, since there are fewer investors in
lower-rated securities, it may be harder to sell the securities
at an optimum time. As a result of these factors, lower-rated
securities tend to have more price volatility and carry more
risk to principal than higher-rated securities.
Many corporate debt obligations, including many lower-rated
bonds, permit the issuers to call the security and thereby
redeem their obligations earlier than the stated maturity dates.
Issuers are more likely to call bonds during periods of
declining interest rates. In these cases, if the Fund owns a
bond which is called, the Fund will receive its return of
principal earlier than expected and would likely be required to
reinvest the proceeds at lower interest rates, thus reducing
income to the Fund.
July 11, 1994
FEDERATED SECURITIES CORP.
Distributor
56166K206
G00453-02-SEL (7/94)
FEDERATED MANAGED INCOME FUND
(A Portfolio of Managed Series Trust)
Institutional Service Shares
Supplement to Prospectus Dated March 11, 1994 for Missouri Investors
The following should be added as a subsection under the section "High Yield
Corporate Bonds" on page 4 of the prospectus:
Investment Risks. Lower-rated securities will usually offer
higher yields than higher-rated securities. However, there is
more risk associated with these investments. This is because of
reduced creditworthiness and increased risk of default. Lower-
rated securities generally tend to reflect short-term corporate
and market developments to a greater extent than higher rated
securities which react primarily to fluctuations in the general
level of interest rates. Short-term corporate and market
developments affecting the price or liquidity of lower-rated
securities could include adverse news affecting major issuers,
underwriters, or dealers of lower-rated corporate debt
obligations. In addition, since there are fewer investors in
lower-rated securities, it may be harder to sell the securities
at an optimum time. As a result of these factors, lower-rated
securities tend to have more price volatility and carry more
risk to principal than higher-rated securities.
Many corporate debt obligations, including many lower-rated
bonds, permit the issuers to call the security and thereby
redeem their obligations earlier than the stated maturity dates.
Issuers are more likely to call bonds during periods of
declining interest rates. In these cases, if the Fund owns a
bond which is called, the Fund will receive its return of
principal earlier than expected and would likely be required to
reinvest the proceeds at lower interest rates, thus reducing
income to the Fund.
July 11, 1994
FEDERATED SECURITIES CORP.
Distributor
56166K107
G00453-01-SS (7/94)
