FEDERATED MANAGED AGGRESSIVE GROWTH FUND
(A PORTFOLIO OF MANAGED SERIES TRUST)
INSTITUTIONAL SERVICE SHARES
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995 FOR MINNESOTA INVESTORS
Investors in the state of Minnesota should be aware of the following:
1. The maximum fees that may be charged by the Fund absent the anticipated
voluntary waivers are:
Management Fee 0.75%
Absent the anticipated voluntary waiver, the Total Institutional Service
Shares Operating Expenses are estimated to be 2.61%.
For more information on Institutional Service Shares expenses, see
"Summary of Fund Expenses" on page 1 of the Prospectus.
2. With regard to the "Asset Category" table on page 4 of the Prospectus,
the category "High Yield Corporate Bonds" under the main category "Bonds"
should be expanded to read as follows:
"High Yield Corporate Bonds (commonly known as junk bonds)".
3. The following sentence should be added after the "Asset Category" table
on page 4 of the Prospectus":
"THE FUND MAY ALSO WRITE COVERED CALL OPTIONS AND SECURED PUT OPTIONS
ON UP TO 25% OF ITS NET ASSETS AND MAY PURCHASE PUT AND CALL OPTIONS
PROVIDED THAT NO MORE THAN 5% OF THE FAIR MARKET VALUE OF ITS NET
ASSETS MAY BE INVESTED IN PREMIUMS ON SUCH OPTIONS."
For more information on options, refer to page 13 of the Prospectus under
the section entitled "Options."
4. RISKS
Investors should be aware of the risks involved with investing in the
following types of securities which the Fund is permitted to purchase.
SMALL COMPANY STOCKS. 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. See "Small Company Stocks" on pages 4 and 5 of the
Prospectus.
LOWER RATED CORPORATE BONDS. Lower rated corporate bonds (commonly known
as "junk bonds") usually offer higher yields in return for increased
risk. This is because of reduced creditworthiness and increased risk of
default. See "Investment Risks", a subsection of "High Yield Corporate
Bonds" on page 6 of the Prospectus.
FOREIGN SECURITIES. Investments in foreign securities involve special
risks that differ from those associated with investments in domestic
securities. These risks relate to political and economic developments
abroad, as well as those that result from the differences between the
regulation of domestic securities and issuers and foreign securities and
issuers. See "Investment Risks", a subsection of "Foreign Securities" on
pages 7 and 8 of the Prospectus.
MORTGAGE-BACKED SECURITIES. Mortgage-backed securities have certain
features which cause them to be less effective as a means of "locking in"
attractive long-term interest rates than fixed income securities which
pay only a stated amount of interest until maturity, when the entire
principal amount is returned. See "Characteristics of Mortgage-Backed
Securities" on page 10 of the Prospectus.
FOREIGN CURRENCY RISKS To the extent that debt securities purchased by
the Fund are denominated in currencies other than the U.S. dollar,
changes in foreign currency exchange rates will affect the Fund's net
asset value; the value of interest earned; gains and losses realized on
the sale of securities; and net investment income and capital gains, if
any, to be distributed to shareholders by the Fund. See "Currency Risks"
which is a subsection of "Foreign Currency Transactions" on page 12 of
the Prospectus.
FUTURES AND OPTIONS ON FUTURES. When the Fund uses futures and options
on futures as hedging devices, there is a risk that the prices of the
securities subject to the futures contracts may not correlate perfectly
with the prices of securities in the Fund's portfolio. See "Risks", a
subsection of "Futures and Options on Futures" on page 14 of the
Prospectus.
January 31, 1995
FEDERATED SECURITIES CORP.
Distributor
56166K701
G00250-01-SS (1/95)
FEDERATED MANAGED AGGRESSIVE GROWTH FUND
(A PORTFOLIO OF MANAGED SERIES TRUST)
SELECT SHARES
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995 FOR MINNESOTA INVESTORS
Investors in the state of Minnesota should be aware of the following:
1. The maximum fees that may be charged by the Fund absent the anticipated
voluntary waivers are:
Management Fee 0.75%
12b-1 fee 0.75%
Absent the anticipated voluntary waivers, the Total Select Shares
Operating Expenses are estimated to be 3.61%.
For more information on Select Shares expenses, see "Summary of Fund
Expenses" on page 1 of the Prospectus.
2. With regard to the "Asset Category" table on page 4 of the Prospectus,
the category "High Yield Corporate Bonds" under the main category "Bonds"
should be expanded to read as follows:
"High Yield Corporate Bonds (commonly known as junk bonds)".
3. The following sentence should be added after the "Asset Category" table
on page 4 of the Prospectus":
"THE FUND MAY ALSO WRITE COVERED CALL OPTIONS AND SECURED PUT OPTIONS
ON UP TO 25% OF ITS NET ASSETS AND MAY PURCHASE PUT AND CALL OPTIONS
PROVIDED THAT NO MORE THAN 5% OF THE FAIR MARKET VALUE OF ITS NET
ASSETS MAY BE INVESTED IN PREMIUMS ON SUCH OPTIONS."
For more information on options, refer to page 12 of the Prospectus under
the section entitled "Options."
4. RISKS
Investors should be aware of the risks involved with investing in the
following types of securities which the Fund is permitted to purchase.
SMALL COMPANY STOCKS. 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. See "Small Company Stocks" on pages 4 and 5 of the
Prospectus.
LOWER RATED CORPORATE BONDS. Lower rated corporate bonds (commonly known
as "junk bonds") usually offer higher yields in return for increased
risk. This is because of reduced creditworthiness and increased risk of
default. See "Investment Risks", a subsection of "High Yield Corporate
Bonds" on page 6 of the Prospectus.
FOREIGN SECURITIES. Investments in foreign securities involve special
risks that differ from those associated with investments in domestic
securities. These risks relate to political and economic developments
abroad, as well as those that result from the differences between the
regulation of domestic securities and issuers and foreign securities and
issuers. See "Investment Risks", a subsection of "Foreign Securities" on
page 7 of the Prospectus.
MORTGAGE-BACKED SECURITIES. Mortgage-backed securities have certain
features which cause them to be less effective as a means of "locking in"
attractive long-term interest rates than fixed income securities which
pay only a stated amount of interest until maturity, when the entire
principal amount is returned. See "Characteristics of Mortgage-Backed
Securities" on page 9 of the Prospectus.
FOREIGN CURRENCY RISKS To the extent that debt securities purchased by
the Fund are denominated in currencies other than the U.S. dollar,
changes in foreign currency exchange rates will affect the Fund's net
asset value; the value of interest earned; gains and losses realized on
the sale of securities; and net investment income and capital gains, if
any, to be distributed to shareholders by the Fund. See "Currency Risks"
which is a subsection of "Foreign Currency Transactions" on page 12 of
the Prospectus.
FUTURES AND OPTIONS ON FUTURES. When the Fund uses futures and options
on futures as hedging devices, there is a risk that the prices of the
securities subject to the futures contracts may not correlate perfectly
with the prices of securities in the Fund's portfolio. See "Risks", a
subsection of "Futures and Options on Futures" on page 14 of the
Prospectus.
January 31, 1995
FEDERATED SECURITIES CORP.
Distributor
56166K800
G00250-02-SE(1/95)
FEDERATED MANAGED GROWTH FUND
(A PORTFOLIO OF MANAGED SERIES TRUST)
INSTITUTIONAL SERVICE SHARES
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995 FOR MINNESOTA INVESTORS
Investors in the state of Minnesota should be aware of the following:
1. The maximum fees that may be charged by the Fund absent the anticipated
voluntary waivers are:
Management Fee 0.75%
Absent the anticipated voluntary waiver, the Total Institutional Service
Shares Operating Expenses are estimated to be 1.79%.
For more information on Institutional Service Shares expenses, see
"Summary of Fund Expenses" on page 1 of the Prospectus.
2. With regard to the "Asset Category" table on page 4 of the Prospectus,
the category "High Yield Corporate Bonds" under the main category "Bonds"
should be expanded to read as follows:
"High Yield Corporate Bonds (commonly known as junk bonds)".
3. The following sentence should be added after the "Asset Category" table
on page 4 of the Prospectus":
"THE FUND MAY ALSO WRITE COVERED CALL OPTIONS AND SECURED PUT OPTIONS
ON UP TO 25% OF ITS NET ASSETS AND MAY PURCHASE PUT AND CALL OPTIONS
PROVIDED THAT NO MORE THAN 5% OF THE FAIR MARKET VALUE OF ITS NET
ASSETS MAY BE INVESTED IN PREMIUMS ON SUCH OPTIONS."
For more information on options, refer to page 13 of the Prospectus under
the subsection entitled "Options."
4. RISKS
Investors should be aware of the risks involved with investing in the
following types of securities which the Fund is permitted to purchase.
SMALL COMPANY STOCKS. 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. See "Small Company Stocks" on page 5 of the
Prospectus.
LOWER RATED CORPORATE BONDS. Lower rated corporate bonds (commonly known
as "junk bonds") usually offer higher yields in return for increased
risk. This is because of reduced creditworthiness and increased risk of
default. See "Investment Risks", a subsection of "High Yield Corporate
Bonds" on page 7 of the Prospectus.
FOREIGN SECURITIES. Investments in foreign securities involve special
risks that differ from those associated with investments in domestic
securities. These risks relate to political and economic developments
abroad, as well as those that result from the differences between the
regulation of domestic securities and issuers and foreign securities and
issuers. See "Investment Risks", a subsection of "Foreign Securities" on
page 7 of the Prospectus.
MORTGAGE-BACKED SECURITIES. Mortgage-backed securities have certain
features which cause them to be less effective as a means of "locking in"
attractive long-term interest rates than fixed income securities which
pay only a stated amount of interest until maturity, when the entire
principal amount is returned. See "Characteristics of Mortgage-Backed
Securities" on page 10 of the Prospectus.
FOREIGN CURRENCY RISKS To the extent that debt securities purchased by
the Fund are denominated in currencies other than the U.S. dollar,
changes in foreign currency exchange rates will affect the Fund's net
asset value; the value of interest earned; gains and losses realized on
the sale of securities; and net investment income and capital gains, if
any, to be distributed to shareholders by the Fund. See "Currency Risks"
which is a subsection of "Foreign Currency Transactions" on page 12 of
the Prospectus.
FUTURES AND OPTIONS ON FUTURES. When the Fund uses futures and options
on futures as hedging devices, there is a risk that the prices of the
securities subject to the futures contracts may not correlate perfectly
with the prices of securities in the Fund's portfolio. See "Risks", a
subsection of "Futures and Options on Futures" on page 14 of the
Prospectus.
January 31, 1995
FEDERATED SECURITIES CORP.
Distributor
56166K503
G00251-01-SS (1/95)
FEDERATED MANAGED GROWTH FUND
(A PORTFOLIO OF MANAGED SERIES TRUST)
SELECT SHARES
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995 FOR MINNESOTA INVESTORS
Investors in the state of Minnesota should be aware of the following:
1. The maximum fees that may be charged by the Fund absent the anticipated
voluntary waivers are:
Management Fee 0.75%
12b-1 fee 0.75%
Absent the anticipated voluntary waivers, the Total Select Shares
Operating Expenses are estimated to be 2.85%.
For more information on Select Shares expenses, see "Summary of Fund
Expenses" on page 1 of the Prospectus.
2. With regard to the "Asset Category" table on page 4 of the Prospectus,
the category "High Yield Corporate Bonds" under the main category "Bonds"
should be expanded to read as follows:
"High Yield Corporate Bonds (commonly known as junk bonds)".
3. The following sentence should be added after the "Asset Category" table
on page 4 of the Prospectus":
"THE FUND MAY ALSO WRITE COVERED CALL OPTIONS AND SECURED PUT OPTIONS
ON UP TO 25% OF ITS NET ASSETS AND MAY PURCHASE PUT AND CALL OPTIONS
PROVIDED THAT NO MORE THAN 5% OF THE FAIR MARKET VALUE OF ITS NET
ASSETS MAY BE INVESTED IN PREMIUMS ON SUCH OPTIONS."
For more information on options, refer to page 13 of the Prospectus under
the section entitled "Options."
4. RISKS
Investors should be aware of the risks involved with investing in the
following types of securities which the Fund is permitted to purchase.
SMALL COMPANY STOCKS. 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. See "Small Company Stocks" on page 5 of the
Prospectus.
LOWER RATED CORPORATE BONDS. Lower rated corporate bonds (commonly known
as "junk bonds") usually offer higher yields in return for increased
risk. This is because of reduced creditworthiness and increased risk of
default. See "Investment Risks", a subsection of "High Yield Corporate
Bonds" on page 6 of the Prospectus.
FOREIGN SECURITIES. Investments in foreign securities involve special
risks that differ from those associated with investments in domestic
securities. These risks relate to political and economic developments
abroad, as well as those that result from the differences between the
regulation of domestic securities and issuers and foreign securities and
issuers. See "Investment Risks", a subsection of "Foreign Securities" on
page 7 of the Prospectus.
MORTGAGE-BACKED SECURITIES. Mortgage-backed securities have certain
features which cause them to be less effective as a means of "locking in"
attractive long-term interest rates than fixed income securities which
pay only a stated amount of interest until maturity, when the entire
principal amount is returned. See "Characteristics of Mortgage-Backed
Securities" on page 10 of the Prospectus.
FOREIGN CURRENCY RISKS To the extent that debt securities purchased by
the Fund are denominated in currencies other than the U.S. dollar,
changes in foreign currency exchange rates will affect the Fund's net
asset value; the value of interest earned; gains and losses realized on
the sale of securities; and net investment income and capital gains, if
any, to be distributed to shareholders by the Fund. See "Currency Risks"
a subsection of "Foreign Currency Transactionsons" on page 12 of the
Prospectus.
FUTURES AND OPTIONS ON FUTURES. When the Fund uses futures and options
on futures as hedging devices, there is a risk that the prices of the
securities subject to the futures contracts may not correlate perfectly
with the prices of securities in the Fund's portfolio. See "Risks", a
subsection of "Futures and Options on Futures" on page 15 of the
Prospectus.
January 31, 1995
FEDERATED SECURITIES CORP.
Distributor
56166K404
G00251-02-SE (1/95)
FEDERATED MANAGED INCOME FUND
(A PORTFOLIO OF MANAGED SERIES TRUST)
INSTITUTIONAL SERVICE SHARES
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995 FOR MINNESOTA INVESTORS
Investors in the state of Minnesota should be aware of the following:
1. The maximum fees that may be charged by the Fund absent the anticipated
voluntary waivers are:
Management Fee 0.75%
Absent the anticipated voluntary waiver, the Total Institutional Service
Shares Operating Expenses are estimated to be 1.68%.
For more information on Institutional Service Shares expenses, see
"Summary of Fund Expenses" on page 1 of the Prospectus.
2. With regard to the "Asset Category" table on page 4 of the Prospectus,
the category "High Yield Corporate Bonds" under the main category "Bonds"
should be expanded to read as follows:
"High Yield Corporate Bonds (commonly known as junk bonds)".
3. The following sentence should be added after the "Asset Category" table
on page 4 of the Prospectus":
"THE FUND MAY ALSO WRITE COVERED CALL OPTIONS AND SECURED PUT OPTIONS
ON UP TO 25% OF ITS NET ASSETS AND MAY PURCHASE PUT AND CALL OPTIONS
PROVIDED THAT NO MORE THAN 5% OF THE FAIR MARKET VALUE OF ITS NET
ASSETS MAY BE INVESTED IN PREMIUMS ON SUCH OPTIONS."
For more information on options, refer to page 13 of the Prospectus under
the section entitled "Options."
4. RISKS
Investors should be aware of the risks involved with investing in the
following types of securities which the Fund is permitted to purchase.
LOWER RATED CORPORATE BONDS. Lower rated corporate bonds (commonly known
as "junk bonds") usually offer higher yields in return for increased
risk. This is because of reduced creditworthiness and increased risk of
default. See "Investment Risks", a subsection of "High Yield Corporate
Bonds" on page 5 of the Prospectus.
MORTGAGE-BACKED SECURITIES. Mortgage-backed securities have certain
features which cause them to be less effective as a means of "locking in"
attractive long-term interest rates than fixed income securities which
pay only a stated amount of interest until maturity, when the entire
principal amount is returned. See "Characteristics of Mortgage-Backed
Securities" on pages 8 and 9 of the Prospectus.
FOREIGN SECURITIES. Investments in foreign securities involve special
risks that differ from those associated with investments in domestic
securities. These risks relate to political and economic developments
abroad, as well as those that result from the differences between the
regulation of domestic securities and issuers and foreign securities and
issuers. See "Investment Risks", a subsection of "Foreign Securities" on
page 10 of the Prospectus.
FOREIGN CURRENCY RISKS To the extent that debt securities purchased by
the Fund are denominated in currencies other than the U.S. dollar,
changes in foreign currency exchange rates will affect the Fund's net
asset value; the value of interest earned; gains and losses realized on
the sale of securities; and net investment income and capital gains, if
any, to be distributed to shareholders by the Fund. See "Currency Risks"
which is a subsection of "Foreign Currency Transactions" on page 12 of
the Prospectus.
FUTURES AND OPTIONS ON FUTURES. When the Fund uses futures and options
on futures as hedging devices, there is a risk that the prices of the
securities subject to the futures contracts may not correlate perfectly
with the prices of securities in the Fund's portfolio. See "Risks", a
subsection of "Futures and Options on Futures" on page 14 of the
Prospectus.
January 31, 1995
FEDERATED SECURITIES CORP.
Distributor
56166K107
G00253-01-SS (1/95)
FEDERATED MANAGED INCOME FUND
(A PORTFOLIO OF MANAGED SERIES TRUST)
SELECT SHARES
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995 FOR MINNESOTA INVESTORS
Investors in the state of Minnesota should be aware of the following:
1. The maximum fees that may be charged by the Fund absent the anticipated
voluntary waivers are:
Management Fee 0.75%
12b-1 fee 0.75%
Absent the anticipated voluntary waivers, the Total Select Shares
Operating Expenses are estimated to be 2.68%.
For more information on Select Shares expenses, see "Summary of Fund
Expenses" on page 1 of the Prospectus.
2. With regard to the "Asset Category" table on page 4 of the Prospectus,
the category "High Yield Corporate Bonds" under the main category "Bonds"
should be expanded to read as follows:
"High Yield Corporate Bonds (commonly known as junk bonds)".
3. The following sentence should be added after the "Asset Category" table
on page 4 of the Prospectus":
"THE FUND MAY ALSO WRITE COVERED CALL OPTIONS AND SECURED PUT OPTIONS
ON UP TO 25% OF ITS NET ASSETS AND MAY PURCHASE PUT AND CALL OPTIONS
PROVIDED THAT NO MORE THAN 5% OF THE FAIR MARKET VALUE OF ITS NET
ASSETS MAY BE INVESTED IN PREMIUMS ON SUCH OPTIONS."
For more information on options, refer to page 13 of the Prospectus under
the section entitled "Options."
4. RISKS
Investors should be aware of the risks involved with investing in the
following types of securities which the Fund is permitted to purchase.
LOWER RATED CORPORATE BONDS. Lower rated corporate bonds (commonly known
as "junk bonds") usually offer higher yields in return for increased
risk. This is because of reduced creditworthiness and increased risk of
default. See "Investment Risks", a subsection of "High Yield Corporate
Bonds" on page 5 of the Prospectus.
MORTGAGE-BACKED SECURITIES. Mortgage-backed securities have certain
features which cause them to be less effective as a means of "locking in"
attractive long-term interest rates than fixed income securities which
pay only a stated amount of interest until maturity, when the entire
principal amount is returned. See "Characteristics of Mortgage-Backed
Securities" on page 8 of the Prospectus.
FOREIGN SECURITIES. Investments in foreign securities involve special
risks that differ from those associated with investments in domestic
securities. These risks relate to political and economic developments
abroad, as well as those that result from the differences between the
regulation of domestic securities and issuers and foreign securities and
issuers. See "Investment Risks", a subsection of "Foreign Securities" on
pages 10 of the Prospectus.
FOREIGN CURRENCY RISKS To the extent that debt securities purchased by
the Fund are denominated in currencies other than the U.S. dollar,
changes in foreign currency exchange rates will affect the Fund's net
asset value; the value of interest earned; gains and losses realized on
the sale of securities; and net investment income and capital gains, if
any, to be distributed to shareholders by the Fund. See "Currency Risks"
which is a subsection of "Foreign Currency Transactions" on page 12 of
the Prospectus.
FUTURES AND OPTIONS ON FUTURES. When the Fund uses futures and options
on futures as hedging devices, there is a risk that the prices of the
securities subject to the futures contracts may not correlate perfectly
with the prices of securities in the Fund's portfolio. See "Risks", a
subsection of "Futures and Options on Futures" on page 14 of the
Prospectus.
January 31, 1995
FEDERATED SECURITIES CORP.
Distributor
56166K206
G00253-02-SE(1/95)
FEDERATED MANAGED GROWTH AND INCOME FUND
(A PORTFOLIO OF MANAGED SERIES TRUST)
INSTITUTIONAL SERVICE SHARES
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995 FOR MINNESOTA INVESTORS
Investors in the state of Minnesota should be aware of the following:
1. The maximum fees that may be charged by the Fund absent the anticipated
voluntary waivers are:
Management Fee 0.75%
Absent the anticipated voluntary waiver, the Total Institutional Service
Shares Operating Expenses are estimated to be 1.47%.
For more information on Institutional Service Shares expenses, see
"Summary of Fund Expenses" on page 1 of the Prospectus.
2. With regard to the "Asset Category" table on page 4 of the Prospectus,
the category "High Yield Corporate Bonds" under the main category "Bonds"
should be expanded to read as follows:
"High Yield Corporate Bonds (commonly known as junk bonds)".
3. The following sentence should be added after the "Asset Category" table
on page 4 of the Prospectus":
"THE FUND MAY ALSO WRITE COVERED CALL OPTIONS AND SECURED PUT OPTIONS
ON UP TO 25% OF ITS NET ASSETS AND MAY PURCHASE PUT AND CALL OPTIONS
PROVIDED THAT NO MORE THAN 5% OF THE FAIR MARKET VALUE OF ITS NET
ASSETS MAY BE INVESTED IN PREMIUMS ON SUCH OPTIONS."
For more information on options, refer to page 13 of the Prospectus under
the section entitled "Options."
4. RISKS
Investors should be aware of the risks involved with investing in the
following types of securities which the Fund is permitted to purchase.
LOWER RATED CORPORATE BONDS. Lower rated corporate bonds (commonly known
as "junk bonds") usually offer higher yields in return for increased
risk. This is because of reduced creditworthiness and increased risk of
default. See "Investment Risks", a subsection of "High Yield Corporate
Bonds" on page 5 of the Prospectus.
SMALL COMPANY STOCKS. 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. See "Small Company Stocks" on page 6 of the
Prospectus.
MORTGAGE-BACKED SECURITIES. Mortgage-backed securities have certain
features which cause them to be less effective as a means of "locking in"
attractive long-term interest rates than fixed income securities which
pay only a stated amount of interest until maturity, when the entire
principal amount is returned. See "Characteristics of Mortgage-Backed
Securities" on page 8 of the Prospectus.
FOREIGN SECURITIES. Investments in foreign securities involve special
risks that differ from those associated with investments in domestic
securities. These risks relate to political and economic developments
abroad, as well as those that result from the differences between the
regulation of domestic securities and issuers and foreign securities and
issuers. See "Investment Risks", a subsection of "Foreign Securities" on
page 10 of the Prospectus.
FOREIGN CURRENCY RISKS To the extent that debt securities purchased by
the Fund are denominated in currencies other than the U.S. dollar,
changes in foreign currency exchange rates will affect the Fund's net
asset value; the value of interest earned; gains and losses realized on
the sale of securities; and net investment income and capital gains, if
any, to be distributed to shareholders by the Fund. See "Currency Risks"
which is a subsection of "Foreign Currency Transactions" on page 12 of
the Prospectus.
FUTURES AND OPTIONS ON FUTURES. When the Fund uses futures and options
on futures as hedging devices, there is a risk that the prices of the
securities subject to the futures contracts may not correlate perfectly
with the prices of securities in the Fund's portfolio. See "Risks", a
subsection of "Futures and Options on Futures" on pages 13 and 14 of the
Prospectus.
January 31, 1995
FEDERATED SECURITIES CORP.
Distributor
56166K305
G00252-01-SS (1/95)
FEDERATED MANAGED GROWTH AND INCOME FUND
(A PORTFOLIO OF MANAGED SERIES TRUST)
SELECT SHARES
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995 FOR MINNESOTA INVESTORS
Investors in the state of Minnesota should be aware of the following:
1. The maximum fees that may be charged by the Fund absent the anticipated
voluntary waivers are:
Management Fee 0.75%
12b-1 fee 0.75%
Absent the anticipated voluntary waivers, the Total Select Shares
Operating Expenses are estimated to be 2.48%.
For more information on Select Shares expenses, see "Summary of Fund
Expenses" on page 1 of the Prospectus.
2. With regard to the "Asset Category" table on page 4 of the Prospectus,
the category "High Yield Corporate Bonds" under the main category "Bonds"
should be expanded to read as follows:
"High Yield Corporate Bonds (commonly known as junk bonds)".
3. The following sentence should be added after the "Asset Category" table
on page 4 of the Prospectus":
"THE FUND MAY ALSO WRITE COVERED CALL OPTIONS AND SECURED PUT OPTIONS
ON UP TO 25% OF ITS NET ASSETS AND MAY PURCHASE PUT AND CALL OPTIONS
PROVIDED THAT NO MORE THAN 5% OF THE FAIR MARKET VALUE OF ITS NET
ASSETS MAY BE INVESTED IN PREMIUMS ON SUCH OPTIONS."
For more information on options, refer to page 13 of the Prospectus under
the section entitled "Options."
4. RISKS
Investors should be aware of the risks involved with investing in the
following types of securities which the Fund is permitted to purchase.
LOWER RATED CORPORATE BONDS. Lower rated corporate bonds (commonly known
as "junk bonds") usually offer higher yields in return for increased
risk. This is because of reduced creditworthiness and increased risk of
default. See "Investment Risks", a subsection of "High Yield Corporate
Bonds" on page 5 of the Prospectus.
SMALL COMPANY STOCKS. 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. See "Small Company Stocks" on page 6.
MORTGAGE-BACKED SECURITIES. Mortgage-backed securities have certain
features which cause them to be less effective as a means of "locking in"
attractive long-term interest rates than fixed income securities which
pay only a stated amount of interest until maturity, when the entire
principal amount is returned. See "Characteristics of Mortgage-Backed
Securities" on pages 8 and 9 of the Prospectus.
FOREIGN SECURITIES. Investments in foreign securities involve special
risks that differ from those associated with investments in domestic
securities. These risks relate to political and economic developments
abroad, as well as those that result from the differences between the
regulation of domestic securities and issuers and foreign securities and
issuers. See "Investment Risks", a subsection of "Foreign Securities" on
page 10 of the Prospectus.
FOREIGN CURRENCY RISKS To the extent that debt securities purchased by
the Fund are denominated in currencies other than the U.S. dollar,
changes in foreign currency exchange rates will affect the Fund's net
asset value; the value of interest earned; gains and losses realized on
the sale of securities; and net investment income and capital gains, if
any, to be distributed to shareholders by the Fund. See "Currency Risks"
which is a subsection of "Foreign Currency Transactions" on page 12 of
the Prospectus.
FUTURES AND OPTIONS ON FUTURES. When the Fund uses futures and options
on futures as hedging devices, there is a risk that the prices of the
securities subject to the futures contracts may not correlate perfectly
with the prices of securities in the Fund's portfolio. See "Risks", a
subsection of "Futures and Options on Futures" on pages 13 and 14 of the
Prospectus.
January 31, 1995
FEDERATED SECURITIES CORP.
Distributor
56166K602
G00252-02-SE (1/95)
