FEDERATED MASTER TRUST
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1998
At a meeting to be held on March 22, 1999, shareholders of the Fund will be
asked to vote on the changes described below. If approved by shareholders, these
changes will take effect as of April 1, 1999, except Proposal 6, which will
occur on or after April 23, 1999. Shareholders will be notified if any of these
changes are not approved.
Please keep this supplement for your records.
Shareholders will be asked to consider proposals:
(1) To elect nine Trustees.
(2) To ratify the selection of the Trust's independent auditors.
(3) To make changes to the Trust's fundamental investment policies:
(a) To amend the Trust's fundamental investment policy on diversification
of its investments;
(b) To make non-fundamental, and to amend, the Trust's fundamental
investment policy regarding maturity of money market instruments;
(c) To make non-fundamental the Trust's fundamental investment policy
prohibiting investment in securities to exercise control of an issuer;
(d) To make non-fundamental, and to amend, the Trust's ability to invest
in the securities of other investment companies;
(e) To make non-fundamental the Trust's fundamental investment policy
regarding the types of money market instruments which the Trust is
permitted to purchase;
(f) To make non-fundamental the Trust's ability to invest in unrated
securities;
(g) To make non-fundamental the Trust's fundamental investment policy
regarding the description of bank instruments that the Trust may
purchase;
(h) To make non-fundamental the Trust's fundamental investment policy
regarding the description of commercial paper that the Trust may
purchase; and
(i) To make non-fundamental, and to amend, the Trust's fundamental
investment policy regarding pledging assets to secure permitted
borrowings.
(4) To eliminate the Trust's fundamental investment policy on concentration and
to reserve freedom to concentrate investments in the domestic banking
industry.
(5) To approve an amendment and restatement to the Trust's Declaration of Trust
to require the approval of a "1940 Act" majority of shareholders in the
event of the sale and conveyance of the assets of the Trust to another
trust or corporation;
(6) To approve a proposed Agreement and Plan of Reorganization between the
Trust and Money Market Obligations Trust, on behalf of its series,
Federated Master Trust (the "New Fund"), whereby the New Fund would acquire
all of the assets of the Trust in exchange for shares of the New Fund to be
distributed PRO RATA by the Trust to its shareholders in complete
liquidation and termination of the Trust.
January 21, 1999
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Federated Investors
Federated Securities Corp., Distributor
Federated Investors, Inc.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
www.federatedinvestors.com
Cusip 314214107
G02544-02(1/99)
