AMERICAN LEADERS FUND, INC.
(A Portfolio of American Leaders Fund, Inc.) Class A Shares
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SUPPLEMENT TO PROSPECTUS DATED JULY 31, 1994
A. Please delete the SUMMARY OF FUND EXPENSES table on page 1 and insert
the following:
SUMMARY OF FUND EXPENSES
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<TABLE>
<CAPTION>
CLASS A SHARES
SHAREHOLDER TRANSACTION EXPENSES
<S> <C> <C>
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price).................... 5.50%
Maximum Sales Load Imposed on Reinvested Dividends
(as a percentage of offering price).................... None
Contingent Deferred Sales Charge (as a percentage of
original purchase
price or redemption proceeds, as applicable) (1)....... 0.00%
Redemption Fee (as a percentage of amount redeemed, if
applicable)............................................. None
Exchange Fee............................................ None
<CAPTION>
ANNUAL CLASS A SHARES OPERATING EXPENSES*
(As a percentage of average net assets)
<S> <C> <C>
Management Fee.......................................... 0.67%
12b-1 Fee............................................... None
Total Other Expenses.................................... 0.52%
Shareholder Services Fee (2).......................... 0.17%
Total Class A Shares Operating Expenses (3)......... 1.19%
</TABLE>
(1) Shareholders who purchased Shares with the proceeds of a redemp-
tion of shares of a mutual fund sold with a sales load and not
distributed by Federated Securities Corp., prior to June 1,
1994, will be charged a contingent deferred sales charge by the
Fund's distributor of .50 of 1% for redemptions made within one
year of purchase. See "Contingent Deferred Sales Charge" on page
14.
(2) The maximum shareholder services fee is 0.25%.
(3) The total Class A Shares operating expenses in the table above
are based on expenses expected during the fiscal year ending
March 31, 1995. The total Class A Shares operating expenses were
1.18% for the fiscal year ended March 31, 1994.
THE PURPOSE OF THIS TABLE IS TO ASSIST AN INVESTOR IN UNDERSTAND-
ING THE VARIOUS COSTS AND EXPENSES THAT A SHAREHOLDER OF CLASS A
SHARES OF THE FUND WILL BEAR, EITHER DIRECTLY OR INDIRECTLY. FOR
MORE COMPLETE DESCRIPTIONS OF THE VARIOUS COSTS AND EXPENSES, SEE
"INVESTING IN CLASS A SHARES" AND "FUND INFORMATION." Wire-trans-
ferred redemptions of less than $5,000 may be subject to additional
fees.
<TABLE>
<CAPTION>
EXAMPLE 1 year 3 years 5 years 10 years
------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
You would pay the following expenses on
a $1,000 investment, assuming(1) 5%
annual return and
(2) redemption at the end of each time
period.................................. $71 $91 $117 $191
You would pay the following expenses on
the same investment assuming no
redemption.............................. $66 $91 $117 $191
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF
PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN
THOSE SHOWN.
The information set forth in the foregoing table and example re-
lates only to Class A Shares of the Fund. The Fund also offers three
additional classes of shares called Class B Shares, Class C Shares,
and Fortress Shares. Class A Shares, Class B Shares, Class C Shares,
and Fortress Shares are all subject to certain of the same expenses.
However, Class B Shares are subject to a 12b-1 fee of up to 0.75%
and a maximum contingent deferred sales charge of 5.50%, but are not
subject to a sales load. Class C Shares are subject to a 12b-1 fee
of 0.75% and a maximum contingent deferred sales charge of 1.00% but
are not subject to a sales load. Fortress Shares are subject to a
maximum sales load of 1.00% and a contingent deferred sales charge
of 1.00% but are not subject to a 12b-1 fee. See "Other Classes of
Shares."
B. Please delete the last paragraph of the section entitled "LIBERTY
FAMILY OF FUNDS" which begins on page 3.
C. Please delete the table in the section entitled "WHAT SHARES COST" on
page 8 and insert the following table in its place:
<TABLE>
<CAPTION>
Dealer Concession
Sales Load as Sales Load as a as a Percentage of
Amount of a Percentage of Percentage of Net Public Offering
Transaction Public Offering Price Amount Invested Price
----------- --------------------- ----------------- ------------------
<S> <C> <C> <C>
Less than $50,000 5.50% 5.82% 5.00%
$50,000 but 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%*
</TABLE>
*See sub-section entitled "DEALER CONCESSION" below.
D. Please delete the first two sentences of the sub-section entitled
"DEALER CONCESSION" on page 9 and revise the third sentence to read as
follows:
"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."
E. Please delete the first two paragraphs of the sub-section entitled
"LETTER OF INTENT" on page 10 and insert the following:
"If a shareholder intends to purchase at least $50,000 of shares in
the funds in the Liberty Family of Funds over the next 13 months, the
sales load may be reduced by signing a letter of intent to that
effect. This letter of intent includes a provision for a sales load
adjustment depending on the amount actually purchased within the 13-
month period and a provision for the custodian to hold 5.5% of the
total amount intended to be purchased in escrow (in shares) until such
purchase is completed.
The 5.5% held in escrow will be applied to the shareholder's account
at the end of the 13-month period unless the amount specified in the
letter of intent is not purchased. In this event, an appropriate
number of escrowed shares may be redeemed in order to realize the
difference in the sales load."
F. Please delete the second sentence of the first paragraph in the sub-
section entitled "CONCURRENT PURCHASES" on page 10 and replace it with
the following:
"For example, if a shareholder concurrently invested $30,000 in one of
the other Liberty Funds with a sales load, and $20,000 in this Fund,
the sales load would be reduced."
September 30, 1994
[LOGO] FEDERATED SECURITIES CORP.
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Distributor
027128107
G00671-01 (9/94)
AMERICAN LEADERS FUND, INC.
Class B Shares
Class C Shares
Fortress Shares
CAPITAL GROWTH FUND
(A Portfolio of Investment Series Funds, Inc.)
Class C Shares
Investment Shares
WORLD UTILITY FUND
(A Portfolio of World Investment Series, Inc.)
Fortress Shares
Supplement to Prospectuses dated July 31, 1994, December 31,
1993, and April 15, 1994, respectively
A.Please revise the last paragraph of the Summary of Fund
Expenses table on page one of the prospectuses to reflect
that Class A Shares of the Fund are subject to a maximum
sales load of 5.5%.
B. Please delete the first sentence of the
second paragraph of the section entitled" Other Classes of
Shares" on page 21 of the American Leaders Fund, Inc.
prospectuses, page 22 of Capital Growth Fund Class C Shares
prospectus, page 19 of Capital Growth Fund Investment
Shares prospectus, and page 25 of World Utility Fund
Fortress Shares prospectus, respectively, and insert the
following in its place:
"Class A Shares offered by the Fund are sold to customers of
financial institutions subject to a front-end sales load of
up to 5.50% ."
September 30, 1994
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated
Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
027128404
027128206
027128305
461444408
461444101
981487200
G00671-02 (9/94)
