LEHMAN BROTHERS INSTITUTIONAL FUNDS GROUP TRUST
PRIME MONEY MARKET FUND TREASURY INSTRUMENTS MONEY MARKET
FUND II
PRIME VALUE MONEY MARKET FUND TAX-FREE MONEY MARKET FUND
GOVERNMENT OBLIGATIONS MONEY MARKET FUND MUNICIPAL MONEY MARKET FUND
CASH MANAGEMENT FUND
Supplement Dated September 11, 1996
to Prospectus Dated May 30, 1996
Please be advised that the Board of Trustees of Lehman Brothers
Institutional Funds Group Trust (the "Trust") has unanimously endorsed a
proposal (a) to combine three of its funds with three portfolios of a trust
sponsored by Federated Investors and (b) to change the investment adviser
of three other funds from Lehman Brothers Global Asset Management to
Federated Management. Each transaction requires shareholder approval and
will also involve the election of new Trustees of the Trust.
With respect to Prime Money Market Fund, Prime Value Money Market
Fund, and Municipal Money Market Fund, shareholders will be asked to
approve adoption of a new investment advisory contract with Federated
Management, an investment advisory subsidiary of Federated Investors, and
the election of the new Trustees to the Trust.
With respect to Government Obligations Money Market Fund, Treasury
Instruments Money Market Fund II, and Tax-Free Money Market Fund
(individually, the "Fund"), shareholders of each Fund, will be asked to
approve a proposed Agreement and Plan of Reorganization between the Trust,
on behalf of each Fund, and Money Market Obligations Trust, on behalf of
one of its portfolios (the "Portfolio"), whereby a Portfolio of Money
Market Obligations Trust would acquire all of the assets of the relevant
Fund in exchange for Institutional Shares and Institutional Service Shares
of the Portfolio to be distributed pro rata by the Fund to holders of Class
A Shares and Class B Shares, respectively, in complete liquidation of the
Fund.
Federated Investors, founded in 1955, is a Pittsburgh-based investment
manager with approximately $70 billion in assets under management.
Federated has been a pioneer in cash management, having created the first
institutional money market fund in 1976. Federated currently offers over
40 money market funds managed specifically to meet the requirements of the
institutional market.
INVESTORS SHOULD RETAIN THIS SUPPLEMENT
WITH THEIR PROSPECTUS FOR FUTURE REFERENCE
Lehman Brothers Institutional Funds Group Trust is distributed by Lehman
Brothers Inc.
