FEDERATED MASTER TRUST
SUPPLEMENT TO PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION AS
APPROPRIATE, DATED JANUARY 31, 1999
At the March 22, 1999 shareholder meeting, shareholders approved the following:
(1) Elected nine Trustees.
(2) Ratified the selection of the Trust's independent
auditors.
(3) Made changes to the Trust's fundamental investment
policies:
(a) Amended the Trust's fundamental investment policy on
diversification of its investments;
(b) Made non-fundamental, and amended, the Trust's
fundamental investment policy regarding maturity of money market instruments;
(c) Made non-fundamental the Trust's fundamental
investment policy prohibiting investment in securities to exercise control of an
issuer;
(d) Made non-fundamental, and amended, the Trust's ability
to invest in the securities of other investment companies;
(e) Made non-fundamental the Trust's fundamental
investment policy regarding the types of money market
instruments which the Trust is permitted to purchase;
(f) Made non-fundamental the Trust's ability to invest in
unrated securities;
(g) Made non-fundamental the Trust's fundamental
investment policy regarding the description of bank instruments that the Trust
may purchase;
(h) Made non-fundamental the Trust's fundamental
investment policy regarding the description of commercial paper that the Trust
may purchase; and
(i) Made non-fundamental, and amended, the Trust's
fundamental investment policy regarding pledging assets to secure permitted
borrowings.
(4) Eliminated the Trust's fundamental investment policy
on concentration and reserved the freedom to
concentrate investments in the domestic banking
industry.
(5) Approved 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) Approved an 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.
March 22, 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
G02544-03 (3/99)
