FEDERATED NEW YORK MUNICIPAL INCOME FUND
A Portfolio of Federated Municipal Securities Income Trust
(formerly, Municipal Securities Income Trust)
CLASS A SHARES
SUPPLEMENT TO PROSPECTUS DATED OCTOBER 31, 1999
Please delete the "What are the Fund's Fees and Expenses?" and the "Example"
which appear on pages 3 and 4 of the current prospectus and replace with the
following "What are the Fund's Fees and Expenses?" and "Example":
WHAT ARE THE FUND'S FEES AND EXPENSES?
FEDERATED NEW YORK MUNICIPAL INCOME FUND
FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and
hold Class A Shares of the Fund. SHAREHOLDER FEES FEES PAID DIRECTLY FROM YOUR
INVESTMENT Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of
4.50% offering price) Maximum Deferred Sales Charge (Load) (as a percentage of
original purchase None price or redemption proceeds, as applicable) Maximum
Sales Charge (Load) Imposed on Reinvested Dividends (and other None
Distributions) (as a percentage of offering price) Redemption Fee (as a
percentage of amount redeemed, if applicable) None Exchange Fee None
ANNUAL FUND OPERATING EXPENSES (BEFORE REIMBURSEMENTS/WAIVERS)1 Expenses That
are Deducted From Fund Assets (as percentage of average net assets) Management
Fee2 0.40% Distribution (12b-1) Fee3 0.50% Shareholder Services Fee4 0.25% Other
Expenses5 1.16% Total Annual Fund Operating Expenses 2.31% 1Although not
contractually obligated to do so, the adviser, distributor and shareholder
services provider will waive and reimburse certain amounts. These are shown
below along with the net expenses the Fund EXPECTS TO PAY for the fiscal year
ending August31, 2000.
Total Reimbursement and Waiver of Fund Expenses 1.40% Total Annual Fund
Operating Expenses (after reimbursements and waivers) 0.91% 2The adviser expects
to voluntarily waive the management fee. The adviser can terminate this
voluntary waiver at any time. The management fee the Fund expects to pay (after
the voluntary waiver) is 0.00% for the fiscal year ending August31, 2000. 3The
distributor expects to voluntarily waive a portion of the distribution
(12b-1) fee. The distributor can terminate this voluntary waiver at any time.
The distribution (12b-1) fee the Fund expects to pay (after the voluntary
waiver) is 0.02% for the fiscal year ending August31, 2000.
4The shareholder services provider expects to voluntarily waive a portion of the
shareholder services fee. The shareholder services provider can terminate
this voluntary waiver at any time. The shareholder services fee the Fund
expects to pay (after the voluntary waiver) is 0.23% for the fiscal year
ending August31, 2000.
5The adviser expects to voluntarily reimburse other operating expenses of the
Fund. The adviser can terminate this voluntary reimbursement of other
operating expenses at any time. The other operating expenses the Fund expects
to pay (after the voluntary reimbursement) are 0.66% for the fiscal year
ending August31, 2000.
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EXAMPLE
This Example is intended to help you compare the cost of investing in the
Fund's Class A Shares with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund's Class A Shares for
the time periods indicated and then redeem all of your Shares at the end of
those periods. The Example also assumes that your investment has a 5% return
each year and that the Fund's Shares operating expenses are before WAIVERS
AND REIMBURSEMENTS as shown in the table and remain the same. Although your
actual costs may be higher or lower, based on these assumptions your costs
would be:
1 Year $ 674
3 Years $1,139
5 Years $1,630
10 Years $2,977
January 7, 2000
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CUSIP 313923401
25063 (1/00)
