FEDERATED U. S. GOVERNMENT SECURITIES: 1-3 YEARS
INSTITUTIONAL SHARES
INSTITUTIONAL SERVICE SHARES
SUPPLEMENT TO PROSPECTUSES DATED APRIL 30, 1999
At a Special Meeting of Shareholders to be held on June 21, 1999, shareholders
of the Trust will be asked to vote on the changes described below. If approved
by shareholders, these changes will take effect as of July 1, 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 the following proposals:
1. To elect seven 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 regarding
borrowing money and issuing senior securities;
b. To amend the Trust's fundamental investment policy regarding
lending by the Trust;
c. To amend, and to make non-fundamental, the Trust's fundamental
investment policy on buying securities on margin;
d. To amend, and to make non-fundamental, the Trust's fundamental
investment policy on pledging assets;
e. To amend, and to make non-fundamental, the Trust's fundamental
investment policy regarding U.S. government securities; and
f. To amend, and to make non-fundamental, the Trust's fundamental
investment policy regarding investing in repurchase agreements.
4. To eliminate certain of the Trust's fundamental investment policies:
a. To remove the Trust's fundamental investment policy regarding
selling securities short; and
b. To remove the Trust's fundamental investment policy regarding
portfolio trading.
5. To approve an amendment and restatement to the Trust's Declaration of
Trust to permit the Board of Trustees to liquidate assets of the Trust
without seeking shareholder approval;
6. To transact such other business as may properly come before the
meeting or any adjournment thereof.
April 23, 1999
Cusip 31428M100
31428M209
G02641-02(4/99)
