Filed by:  Federated Short-Term Municipal Trust

Pursuant to Rule 425 under the Securities Act of 1933 and deemed filed pursuant
to Rule 14a-6 of the Securities Act of 1934

Subject Company:  Federated Limited Term Municipal Fund
Commission File No. 811-3181




          RE: COMBINATION OF FEDERATED LIMITED TERM MUNICIPAL FUND AND
                      FEDERATED SHORT-TERM MUNICIPAL TRUST

Dear Investment Representative:

I am writing to let you know that your clients who are shareholders of Federated
Limited Term Municipal Fund (LTMF) will be receiving a Prospectus/Proxy
Statement requesting their approval of a reorganization which will combine their
fund into Federated Short-Term Municipal Trust (STMT).  Both funds seek to
provide income exempt from federal regular income tax by investing in a
portfolio of investment grade tax-exempt securities.*

WE BELIEVE THE COMBINATION WILL BE IN LTMF SHAREHOLDERS' BEST INTERESTS FOR
SEVERAL REASONS.  First, it will decrease the likelihood that redemptions will
disrupt the portfolio management of these relatively small funds.  Second, for
holders of LTMF Class F Shares, the reorganization will result in lower fees and
expenses.  In both cases, the reorganization will not change the net asset value
of their investments.

LTMF's Class A Shareholders will become owners of Class A Shares of STMT, while
owners of LTMF's Class F Shares will become owners of Institutional Service
Shares of STMT.   The reorganization will be a tax-free transaction for federal
income tax purposes.  Shareholders of LTMF should consult their tax advisors
regarding the effect, if any, of the reorganization in light of their individual
circumstances.

You should note that as a result of the reorganization, the minimum account size
for LTMF Class F shareholders who receive Institutional Service Shares of STMT
will increase from $1,500 to $25,000, and any Systematic Investment Plan (SIP)
for their shares will be terminated.  The minimum account size for Class A
shareholders will remain at $1,500, and SIPs will continue to be available.

A special meeting of the shareholders of LTMF will be held on December 8, 2006.

If you have any questions about this reorganization or about any other Federated
products, please contact your Federated representative or visit
www.federatedinvestors.com.  Thank you for your support of Federated funds.

Sincerely,

Thomas Territ
President
Federated Securities Corp.

*   Income may be subject to the federal alternative minimum tax.

INSTITUTIONAL SALES MATERIAL.  Not to be shown to the public.
Federated Securities Corp., Distributor  Federated is a registered mark of
Federated Investors, Inc. 2006 {copyright} Federated Investors, Inc.
35604 (11/06)

A PROSPECTUS/PROXY STATEMENT DATED OCTOBER 26, 2006 AND RELATING TO THE PROPOSED
REORGANIZATION  HAS BEEN MAILED TO SHAREHOLDERS OF LTMF.  INVESTORS ARE URGED TO
READ THE PROSPECTUS/PROXY STATEMENT BECAUSE IT CONTAINS IMPORTANT INFORMATION. A
COPY OF THE  PROSPECTUS/PROXY  STATEMENT MAY BE OBTAINED  WITHOUT CHARGE THROUGH
THE  INTERNET  AT  WWW.SEC.GOV  OR AT  WWW.FEDERATEDINVESTORS.COM  OR BY CALLING
1-800-245-5000.