FEDERATED COMPLEX FUNDS
SUPPLEMENT TO STATEMENTS OF ADDITIONAL INFORMATION
Please add the following paragraphs under the section entitled "SPECIAL
TRANSACTIONS":
"INTER-FUND BORROWING AND LENDING ARRANGEMENTS
The SEC has granted an exemption that permits the Fund and all other funds
advised by subsidiaries of Federated Investors, Inc. ("Federated funds") to lend
and borrow money for certain temporary purposes directly to and from other
Federated funds. Participation in this inter-fund lending program is voluntary
for both borrowing and lending funds, and an inter-fund loan is only made if it
benefits each participating fund. Federated administers the program according to
procedures approved by the Fund's Board, and the Board monitors the operation of
the program. Any inter-fund loan must comply with certain conditions set out in
the exemption, which are designed to assure fairness and protect all
participating funds.
For example, inter-fund lending is permitted only (a) to meet shareholder
redemption requests, and (b) to meet commitments arising from "failed" trades.
All inter-fund loans must be repaid in seven days or less. The Fund's
participation in this program must be consistent with its investment policies
and limitations, and must meet certain percentage tests. Inter-fund loans may be
made only when the rate of interest to be charged is more attractive to the
lending fund than market-competitive rates on overnight repurchase agreements
(the "Repo Rate") AND more attractive to the borrowing fund than the rate of
interest that would be charged by an unaffiliated bank for short-term borrowings
(the "Bank Loan Rate"), as determined by the Board. The interest rate imposed on
inter-fund loans is the average of the Repo Rate and the Bank Loan Rate."
<TABLE>
<CAPTION>
FEDERATED COMPLEX FUNDS
<S> <C>
Cash Trust Series II Federated Municipal Securities Income Trust
Cash Trust Series, Inc. Federated Municipal Trust
Edward D. Jones & Co. Daily Passport Cash Trust Federated Short-Term Municipal Trust
Federated Adjustable Rate U.S. Government Fund, Inc. Federated Stock and Bond Fund, Inc.
Federated American Leaders Fund, Inc. Federated Stock Trust
Federated ARMS Fund Federated U.S. Government Bond Fund
Federated Equity Funds Federated U.S. Government Securities Fund: 1-3 Years
Federated Equity Income Fund, Inc. Federated U.S. Government Securities Fund: 2-5 Years
Federated Fund for U.S. Government Securities, Inc. Federated U.S. Government Securities Fund: 5-10 Years
Federated GNMA Trust Federated Utility Fund, Inc.
Federated Government Income Securities, Inc. Fixed Income Securities, Inc.
Federated High Income Bond Fund, Inc. Intermediate Municipal Trust
Federated High Yield Trust International Series, Inc.
Federated Income Securities Trust Investment Series Funds, Inc.
Federated Income Trust Managed Series Trust
Federated Index Trust Money Market Management, Inc.
Federated Institutional Trust Money Market Obligations Trust
Federated Insurance Series Money Market Trust
Federated Municipal Opportunities Fund, Inc. Tax-Free Instruments Trust
Federated Municipal Securities Fund, Inc. World Investment Series, Inc.
</TABLE>
november 18, 1999
022390 (11/99)
