CALIFORNIA MUNICIPAL CASH TRUST
(A PORTFOLIO OF FEDERATED MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
SUPPLEMENT TO PROSPECTUS DATED DECEMBER 31, 1995
Effective February 29, 1996, California Municipal Cash Trust, a portfolio of
Federated Municipal Cash Trust, added a new class of shares called
"Institutional Shares." Accordingly, the existing shares of California Municipal
Cash Trust are designated as "Institutional Service Shares." All references in
this prospectus to California Municipal Cash Trust are to the Institutional
Service Shares class of the portfolio. In this regard, please make the following
changes to the prospectus:
A. On page 1, please delete the section entitled "SUMMARY OF FUND EXPENSES" and
replace it with the following:
"SUMMARY OF FUND EXPENSES
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on Purchases (as a percentage of offering price)....... None
Maximum Sales Charge Imposed on Reinvested Dividends (as a percentage of offering
price)............................................................................ None
Contingent Deferred Sales Charge (as a percentage of original
purchase price or redemption proceeds as applicable).............................. None
Redemption Fee (as a percentage of amounts redeemed, if applicable)................. None
Exchange Fee........................................................................ None
ANNUAL FUND OPERATING EXPENSES
(As a percentage of average net assets)
Management Fee (after waiver)(1).................................................... 0.00%
12b-1 Fee........................................................................... None
Total Other Expenses (after expense reimbursement).................................. 0.45%
Shareholder Services Fee................................................. 0.25%
Total Operating Expenses(2)............................................... 0.45%
</TABLE>
(1) The management fee has been reduced to reflect the voluntary waiver of the
management fee. The adviser can terminate this voluntary waiver at any time at
it sole discretion. The maximum management fee is 0.50%.
(2) The total operating expenses in the table above are based on expenses
expected during the fiscal year ending October 31, 1996. The total operating
expenses were 0.59% for the fiscal year ended October 31, 1995 and would have
been 1.09% absent the voluntary waivers of a portion of the management fee and a
portion of the shareholder services fee.
The purpose of this table is to assist an investor in understanding the
various costs and expenses that a shareholder of Institutional Service Shares of
the Fund will bear, either directly or indirectly. For more complete
descriptions of the various costs and expenses, see "Fund Information." Wire-
transferred redemptions of less than $5,000 may be subject to additional fees.
<TABLE>
<CAPTION>
EXAMPLE 1 year 3 years 5 years 10 years
- -------------------------------------------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return and (2)
redemption at the end of each time period............. $5 $14 $25 $ 57
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN."
B. On page 3, please delete the first paragraph under the section entitled
"General Information" and replace it with the following:
"The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated September 1, 1989. The Declaration of Trust permits the Trust to
offer separate series of shares of beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to this Fund, as of the date of this
prospectus, the Trustees have established two classes of shares known as
Institutional Service Shares and Institutional Shares. This prospectus relates
only to Institutional Service Shares of the Fund, which are designed for banks
and other institutions that hold assets for individuals, trusts, estates, or
partnership as a convenient means of accumulating as interest in a
professionally managed, non-diversified portfolio in short-term California
municipal securities. The Fund may not be a suitable investment for retirement
plans or for non-California taxpayers because it invests in municipal securities
of that state. A minimum initial investment of $25,000 over a 90-day period is
required."
C. On page 10, please delete the fourth sentence of the sub-section entitled
"Purchasing Shares By Wire" and replace it with the following:
"Federal funds should be wired as follows: State Street Bank and Trust Company,
Boston, MA; Attention: EDGEWIRE; For Credit to: California Municipal Cash
Trust--Institutional Service Shares: Fund Number (this number can be found on
the account statement or by contacting the Fund); Group Number or Order Number;
Nominee or Institution Name; and ABA Number 011000028."
D. On page 10, please delete the second sentence of the sub-section entitled
"Purchasing Shares By Check" and replace it with the following:
"The check should be made payable to California Municipal Cash
Trust--Institutional Service Shares."
E. On page 14, following the section entitled "Performance Information", please
add the following:
"OTHER CLASSES OF SHARES
- --------------------------------------------------------------------------------
The Fund also offers another class of shares called Institutional Shares.
Institutional Shares are sold at net asset value primarily to financial
institutions and are subject to a minimum investment of $25,000 within a 90-day
period.
Both classes are subject to certain of the same expenses.
Institutional Shares are distributed with no 12b-1 Plan, but are subject to
shareholder services fees.
Expense differences between classes may affect the performance of each class.
To obtain more information and a prospectus for Institutional Shares, investors
may call 1-800-235-4669."
February 29, 1996
FEDERATED SECURITIES CORP.
(LOGO)
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
CUSIP 314229766
G00254-06-SS (2/96)
MICHIGAN MUNICIPAL CASH TRUST
(A PORTFOLIO OF FEDERATED MUNICIPAL TRUST)
- --------------------------------------------------------------------------------
SUPPLEMENT TO PROSPECTUS DATED DECEMBER 31, 1995
Effective February 29, 1996, Michigan Municipal Cash Trust, a portfolio of
Federated Municipal Cash Trust, added a new class of shares called
"Institutional Shares." Accordingly, the existing shares of Michigan Municipal
Cash Trust are designated as "Institutional Service Shares." All references in
this prospectus to Michigan Municipal Cash Trust are to the Institutional
Service Shares class of the portfolio. In this regard, please make the following
changes to the prospectus:
A. On page 1, please delete the section entitled "SUMMARY OF FUND EXPENSES" and
replace with the following:
"SUMMARY OF FUND EXPENSES
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INSTITUTIONAL SERVICE SHARES
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on Purchases (as a percentage of offering price)....... None
Maximum Sales Charge Imposed on Reinvested Dividends (as a percentage of offering
price)............................................................................ None
Contingent Deferred Sales Charge (as a percentage of original
purchase price or redemption proceeds as applicable).............................. None
Redemption Fee (as a percentage of amounts redeemed, if applicable)................. None
Exchange Fee........................................................................ None
ANNUAL OPERATING EXPENSES
(As a percentage of average net assets)
Management Fee (after waiver)(1).................................................... 0.00%
12b-1 Fee........................................................................... None
Total Other Expenses (after expense reimbursement).................................. 0.62%
Shareholder Services Fee................................................. 0.25%
Total Fund Operating Expenses(2).......................................... 0.62%
</TABLE>
(1) The management fee has been reduced to reflect the voluntary waiver of the
management fee. The adviser can terminate this voluntary waiver at any time at
it sole discretion. The maximum management fee is 0.50%.
(2) The total operating expenses in the table above are based on expenses
expected during the fiscal year ending October 31, 1996. The total operating
expenses were 0.32% for the fiscal year ended October 31, 1995 and would have
been 1.95% absent the voluntary waiver of the management fee and the voluntary
reinbursement of certain other operating expenses.
The purpose of this table is to assist an investor in understanding the
various costs and expenses that a shareholder of Institutional Service Shares of
the Fund will bear, either directly or indirectly. For more complete
descriptions of the various costs and expenses, see "Fund Information." Wire-
transferred redemptions of less than $5,000 may be subject to additional fees.
<TABLE>
<CAPTION>
EXAMPLE 1 year 3 years 5 years 10 years
- -------------------------------------------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000
investment assuming (1) 5% annual return and (2)
redemption at the end of each time period............. $6 $20 $35 $ 77
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN."
B. On page 3, please delete the first paragraph under the section entitled
"General Information" and replace it with the following:
"The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated September 1, 1989. The Declaration of Trust permits the Trust to
offer separate series of shares of beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to this Fund, as of the date of this
prospectus, the Trustees have established two classes of shares known as
Institutional Service Shares and Institutional Shares. This prospectus relates
only to Institutional Service Shares of the Fund, which are designed primarily
for financial institutions acting in an agency or fiduciary capacity as a
convenient means of accumulating as interest in a professionally managed,
non-diversified portfolio in short-term Michigan municipal securities. The Fund
may not be a suitable investment for retirement plans or for non-Michigan
taxpayers because it invests in municipal securities of that state. A minimum
initial investment of $10,000 over a 90-day period is required."
C. On page 10, please delete the fourth sentence of the sub-section entitled
"Purchasing Shares By Wire" and replace it with the following:
"Federal funds should be wired as follows: State Street Bank and Trust Company,
Boston, MA; Attention: EDGEWIRE; For Credit to: Michigan Municipal Cash
Trust--Institutional Service Shares: Fund Number (this number can be found on
the account statement or by contacting the Fund); Group Number or Order Number;
Nominee or Institution Name; and ABA Number 011000028."
D. On page 10, please delete the second sentence of the sub-section entitled
"Purchasing Shares By Check" and replace it with the following:
"The check should be made payable to Michigan Municipal Cash
Trust--Institutional Service Shares."
E. On page 14, following the section entitled "Performance Information", please
add the following:
"OTHER CLASSES OF SHARES
- --------------------------------------------------------------------------------
The Fund also offers another class of shares called Institutional Shares.
Institutional Shares are sold at net asset value primarily to financial
institutions and are subject to a minimum investment of $10,000 within a 90-day
period.
Both classes are subject to certain of the same expenses.
Institutional Shares are distributed with no 12b-1 Plan, but are subject to
shareholder services fees.
Expense differences between classes may affect the performance of each class.
To obtain more information and a prospectus for Institutional Shares, investors
may call 1-800-235-4669."
February 29, 1996
FEDERATED SECURITIES CORP.
(LOGO)
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
CUSIP 314229725
G01213-03 (2/96)
OHIO MUNICIPAL CASH TRUST
(A PORTFOLIO OF FEDERATED MUNICIPAL TRUST)
CASH II SHARES
- --------------------------------------------------------------------------------
SUPPLEMENT TO PROSPECTUS DATED DECEMBER 31, 1995
Effective February 29, 1996, Ohio Municipal Cash Trust, a portfolio of Federated
Municipal Cash Trust, added a new class of shares called "Institutional Shares."
Accordingly, the existing shares of Ohio Municipal Cash Trust are designated as
"Institutional Service Shares" and "Cash II Shares". All references in this
prospectus to Ohio Municipal Cash Trust are to the Class II Shares class of the
portfolio. In this regard, please make the following changes to the prospectus:
A. On page 1, please delete the section entitled "SUMMARY OF FUND EXPENSES" and
replace with the following:
"SUMMARY OF FUND EXPENSES
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
CASH II SHARES
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on Purchases (as a percentage of offering price)....... None
Maximum Sales Charge Imposed on Reinvested Dividends (as a percentage of offering
price)............................................................................ None
Contingent Deferred Sales Charge (as a percentage of original
purchase price or redemption proceeds as applicable).............................. None
Redemption Fee (as a percentage of amounts redeemed, if applicable)................. None
Exchange Fee........................................................................ None
ANNUAL OPERATING EXPENSES
(As a percentage of average net assets)
Management Fee (after waiver)(1).................................................... 0.16%
12b-1 Fee (after waiver)(2)......................................................... 0.25%
Total Other Expenses................................................................ 0.46%
Shareholder Services Fee................................................. 0.25%
Total Operating Expenses(3)............................................... 0.87%
</TABLE>
(1) The management fee has been reduced to reflect the voluntary waiver of a
portion of the management fee. The adviser can terminate this voluntary waiver
at any time at its sole discretion. The maximum management fee is 0.40%.
(2) The maximum 12b-1 fee is 0.30%.
(3) The total operating expenses in the table above are based on expenses
expected during the fiscal year ending October 31, 1996. The total operating
expenses were 0.87% for the fiscal year ended October 31, 1995 and would have
been 1.16% absent the voluntary waivers of a portion of the management fee and a
portion of the 12b-1 fee.
The purpose of this table is to assist an investor in understanding the
various costs and expenses that a shareholder of Class II Shares of the Fund
will bear, either directly or indirectly. For more complete descriptions of the
various costs and expenses, see "Fund Information." Wire-transferred redemptions
of less than $5,000 may be subject to additional fees.
<TABLE>
<CAPTION>
EXAMPLE 1 year 3 years 5 years 10 years
- -------------------------------------------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000
investment assuming (1) 5% annual return and (2)
redemption at the end of each time period............. $9 $28 $48 $107
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN."
B. On page 3, please delete the first paragraph under the section entitled
"General Information" and replace it with the following:
"The Trust was established as a Massachusetts business trust under a Declaration
of Trust dated September 1, 1989. The Declaration of Trust permits the Trust to
offer separate series of shares of beneficial interest representing interests in
separate portfolios of securities. The shares in any one portfolio may be
offered in separate classes. With respect to this Fund, as of the date of this
prospectus, the Trustees have established three classes of shares known as Class
II Shares, Institutional Service Shares, and Institutional Shares. This
prospectus relates only to Class II Shares of the Fund, which are designed
primarily for the retail customers of financial institutions as a convenient
means of accumulating as interest in a professionally managed, non-diversified
portfolio in short-term Ohio municipal securities. The Fund may not be a
suitable investment for retirement plans or for non-Ohio taxpayers because it
invests in municipal securities of that state. A minimum initial investment of
$25,000 over a 90-day period is required. The Fund attempts to stabilize the
value of a share at $1.00. Shares are currently sold and redeemed at that
price."
C. On page 14, of the section entitled "Other Classes of Shares", please add the
following:
"The Fund also offers two other classes of shares called Institutional Shares
and Institutional Service Shares. Institutional Shares are sold at net asset
value primarily to financial institutions and are subject to a minimum
investment of $25,000 within a 90-day period.
All classes are subject to certain of the same expenses.
Institutional Shares and Institutional Service Shares are distributed with no
12b-1 Plan, but are subject to shareholder services fees.
Expense differences between classes may affect the performance of each class.
To obtain more information and a prospectus for Institutional Shares or
Institutional Service Shares, investors may call 1-800-235-4669."
February 29, 1996
FEDERATED SECURITIES CORP.
(LOGO)
- ---------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
CUSIP 314229840
