FEDERATED INSTITUTIONAL SHORT DURATION GOVERNMENT FUND
(A PORTFOLIO OF FEDERATED INSTITUTIONAL TRUST)
SUPPLEMENT TO PROSPECTUS DATED SEPTEMBER 30, 1998
At a Special Meeting of Shareholders to be held on June 21, 1999, shareholders
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 Fund's fundamental investment policies:
(a) To amend the Fund's fundamental investment policy regarding
diversification;
(b) To amend the Fund's fundamental investment policy regarding borrowing
money and issuing senior securities;
(c) To amend the Fund's fundamental investment policy regarding
investments in real estate;
(d) To amend the Fund's fundamental investment policy concerning
investments in commodities;
(e) To amend the Fund's fundamental investment policy regarding
underwriting securities;
(f) To amend the Fund's fundamental investment policy regarding lending by
the Fund;
(g) To amend the Fund's fundamental investment policy regarding
concentration of the Fund's investments in the securities of companies
in the same industry;
(h) To amend, and to make non-fundamental, the Fund's fundamental
investment policy on buying securities on margin; and
(i) To amend, and to make non-fundamental, the Fund's fundamental
investment policy on pledging assets.
(4) To eliminate the Fund's fundamental investment policy on selling securities
short.
(5) To transact such other business as may properly come before the meeting or
any adjournment thereof.
April 23, 1999
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Federated Investors
Federated Securities Corp., Distributor
Federated Investors, Inc.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
Cusip 31420B102
G02640-02
