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stroke
INTERNATIONAL INCOME FUND
Class C Shares
LIBERTY HIGH INCOME BOND FUND, INC.
Class C Shares
Supplement to Prospectuses dated March 29, 1994 and July 31, 1994,
respectively
1. Please delete the first sentence of the fifth paragraph on the cover
pages of the above-noted prospectuses and insert the following:
"The Fund has also filed a Combined Statement of Additional
Information for Class A Shares, Class B Shares, and Class C
Shares, dated September 27, 1994, with the Securities and
Exchange Commission."
2. Please revise the last paragraph of the Summary of Fund Expenses table
on page 1 of the prospectuses to reflect that Class B Shares of the
Fund are subject to a 12b-1 fee of up to 0.75% and a maximum
contingent deferred sales charge of 5.5%.
3. On page 3 of the above-noted prospectuses, please delete the next to
last sentence of the first paragraph under the section entitled
"General Information" and replace with the following:
"With respect to the Fund, as of the date of this prospectus,
the Board of Directors "the "Directors") has established three
classes of shares, known as Class A Shares, Class B Shares and
Class C Shares."
4. On page 12 of the International Income Fund prospectus and page 9 of
the Liberty High Income Bond Fund, Inc. prospectus, please delete the
third sentence of section entitled "Net Asset Value" and replace it
with the following:
"The net asset value for Class A Shares may differ from that of
Class B Shares and Class C Shares due to the variance in daily
net income realized by each class."
5. On page 25 of the International Income Fund prospectus, please revise
the first sentence of the section entitled "Shareholder Services Plan"
and replace it with the following:
"The Fund has adopted a Shareholder Services Plan (the "Services
Plan") with respect to Class C Shares."
6. Please delete the fifth paragraph of the section entitled "Performance
Information" on page 28 of the International Income Fund prospectus
and replace it with the following:
"Total return and yield will be calculated separately for Class
A Shares, Class B Shares, and Class C Shares. Because Class A
Shares may be subject to lower 12b-1 fees, the yield for Class A
Shares, for the same period, may exceed that of Class B Shares
and Class C Shares. Because Class A Shares are subject to a
front-end sales load, the total return for Class B Shares and
Class C Shares, for the same period, may exceed that of Class A
Shares. Depending on the dollar amount invested and the time
period for which any class of shares is held, the total return
for any particular class may exceed that of another."
7. Please delete the fourth paragraph of the section entitled
"Performance Information" on page 23 of the Liberty High Income Bond
Fund, Inc. prospectus and replace it with the following:
Total return and yield will be calculated separately for Class A
Shares, Class B Shares, and Class C Shares. Because Class B
Shares and Class C Shares are subject to a rule 12b-1 fee, the
yield for Class A Shares, for the same period, may exceed that
of Class B Shares and Class C Shares. Because Class A Shares
are subject to a front-end sales load, the total return for
Class B Shares and Class C Shares, for the same period, may
exceed that of Class A Shares. Depending on the dollar amount
invested and the time period for which any class of shares is
held, the total return for any particular class may exceed that
of another."
8. Please revise the section entitled "Other Classes of Shares" to
include the following information:
"Class B Shares are sold primarily to customers of financial
institutions, subject to a maximum contingent deferred sales
charge of 5.5%. Each of the Funds has also adopted a Rule 12b-1
plan whereby the distributor is paid a fee of up to .75 of 1%
and a Shareholder Services fee of up to .25 of 1% of the Class B
Shares' average daily net assets with respect to Class B Shares.
Investments in Class B Shares are subject to a minimum initial
investment of $1,500, unless the investment is in a retirement
account, in which case the minimum investment is $50."
September 30, 1994
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
46031P209
530565209
G00671-08 (9/94)
INTERNATIONAL INCOME FUND
Class A Shares
LIBERTY HIGH INCOME BOND FUND, INC.
Class A Shares
Supplement to Prospectuses dated March 29, 1994 and July 31, 1994,
respectively
1.Please delete the first sentence of the fifth paragraph on the cover pages of
the above-noted prospectuses and insert the following:
"The Fund has also filed a Combined Statement of Additional
Information for Class A Shares, Class B Shares, and Class C
Shares, dated September 27, 1994, with the Securities and
Exchange Commission."
2.Effective September 27, 1994, the above-noted Funds are offered in Class B
Shares.
Please revise the last paragraph of the Summary of Fund Expenses table
on page 1 of the prospectus to reflect that Class B Shares of the
Fund are subject to a 12b-1 fee of up to 0.75% and a maximum
contingent deferred sales charge of 5.5%.
3.On page 3 of the above-noted prospectuses, please delete the next to last
sentence of the first paragraph
under the section entitled "General Information" and replace it with
the following:
"With respect to the Fund, as of the date of this prospectus,
the Board of Directors (the "Directors") has established three
classes of shares, known as Class A Shares, Class B Shares and
Class C Shares."
4.On page 5 of the Liberty High Income Bond Fund, Inc. prospectus, please add
the following as the second
sentence of the second paragraph of the sub-section entitled
"Acceptable Investments."
"There is no limit to portfolio maturity."
5.On page 7 of the Liberty High Income Bond Fund, Inc. prospectus, please add
the following as the fourth
sentence of the first paragraph of the section entitled "Investment
Risks."
"Companies who have received the lowest rating have failed to
satisfy their obligations under the bond indenture."
6.On page 12 of the International Income Fund prospectus and page 9 of the
Liberty High Income Bond Fund,
Inc. prospectus, please delete the third sentence of section entitled
"Net Asset Value" and replace it with the following:
"The net asset value for Class A Shares may differ from that of
Class B Shares and Class C Shares due to the variance in daily
net income realized by each class."
7.Please delete the table in the section entitled "What Shares Cost" on page
13 of the International Income
Fund prospectus and page 10 of the Liberty High Income Bond Fund,
Inc. prospectus and insert the following table in its place:
Sales Load as Sales Load as Dealer Concession
Amount of a Percentage of a Percentage ofas a Percentage of
Transaction Offering Price Net Amount Invested Public Off
ering Price
Less than $100,000 4.50% 4.71% 4.00%
$100,000 but less than $250,000 3.75% 3.90%
3.25%
$250,000 but less than $500,000 2.50% 2.56%
2.25%
$500,000 but less than $1,000,000 2.00% 2.04%
1.80%
$1,000,000 or greater 0.00% 0.00% 0.25%*
*See sub-section entitled "Dealer Concession"
below.
8.Please delete the third paragraph of the section entitled "What Shares Cost"
on page 14 of the International
Income Fund prospectus and insert the following in its place.
"No sales load is imposed for Fund Shares purchased through bank
trust departments, investment advisers registered under the
Investment Advisers Act of 1940, as amended, or retirement plans
where the third party administrator has entered into certain
arrangements with Federated Securities Corp. or its affiliates.
In addition, certain institutions such as insurance companies
and certain associations are exempt from the sales load for
purchases of Shares. However, investors who purchase Shares
through a trust department or investment adviser or retirement
plan may be charged an additional service fee by that
institution."
9.Please delete the first paragraph of the sub-section entitled "Dealer
Concession" on page 14 of the International Income Fund prospectus
and insert the following in its place:
"Dealer Concession. In addition to the dealer concession as
noted in the table above, the distributor, in its sole
discretion, may uniformly offer to pay all dealers selling
Shares additional amounts, all or a portion of which may be paid
from the sales charge it normally retains or any other source
available to it. Such additional payments may take the form of
cash or promotional incentives, such as reimbursement of certain
expenses of qualified employees and their spouses to attend
informational meetings about the Fund or other special events at
recreational-type facilities, or items of material value. In
some instances, these incentives will be made available only to
dealers whose employees have sold or may sell significant amount
of Shares. On purchases of $1 million or more, the investor
pays no sales load; however, the distributor will make twelve
monthly payments to the dealer totaling 0.25% of the public
offering price over the first year following the purchase. Such
payments are based on the original purchase price of Shares
outstanding at each month end."
10.Please delete the first three sentences of the sub-section entitled
"Dealer Concession" on page 11 of the Liberty High Income Bond Fund,
Inc. prospectus and insert the following as the first sentence:
"In addition to the dealer concession as noted in the table
above, the distributor may offer to pay dealers up to 100% of
the sales load retained by it."
11.On page 27 of the International Income Fund prospectus, please revise the
first sentence of the section
entitled "Shareholder Services Plan" and replace it with the
following:
"The Fund has adopted a Shareholder Services Plan (the "Services
Plan") with respect to Class A Shares."
12.Please delete the fifth paragraph of the section entitled "Performance
Information" on page 30 of the
International Income Fund prospectus and replace it with the
following:
"Total return and yield will be calculated separately for Class
A Shares, Class B Shares, and Class C Shares. Because Class A
Shares may be subject to lower 12b-1 fees, the yield for Class A
Shares, for the same period, may exceed that of Class B Shares
and Class C Shares. Because Class A Shares are subject to a
front-end sales load, the total return for Class B Shares and
Class C Shares, for the same period, may exceed that of Class A
Shares. Depending on the dollar amount invested and the time
period for which any class of shares is held, the total return
for any particular class may exceed that of another."
13.Please delete the fifth paragraph of the section entitled "Performance
Information" on page 24 of the
Liberty High Income Bond Fund, Inc. prospectus and replace it with the
following:
Total return and yield will be calculated separately for Class A
Shares, Class B Shares, and Class C Shares. Because Class B
Shares and Class C Shares are subject to a rule 12b-1 fee, the
yield for Class A Shares, for the same period, may exceed that
of Class B Shares and Class C Shares. Because Class A Shares
are subject to a front-end sales load, the total return for
Class B Shares and Class C Shares, for the same period, may
exceed that of Class A Shares. Depending on the dollar amount
invested and the time period for which any class of shares is
held, the total return for any particular class may exceed that
of another."
14. Please revise the section entitled "Other Classes of Shares" to include
the following information:
"Class B Shares are sold primarily to customers of financial
institutions, subject to a maximum contingent deferred sales
charge of 5.5%. The Fund has also adopted a Rule 12b-1 plan
whereby the distributor is paid a fee of up to .75 of 1% and a
Shareholder Services fee of up to .25 of 1% of the Class B
Shares' average daily net assets with respect to Class B Shares.
Investments in Class B Shares are subject to a minimum initial
investment of $1,500, unless the investment is in a retirement
account, in which case the minimum investment is $50."
September 30, 1994
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
46031P100
530565100
G00671-07 (9/94)
