INTERNATIONAL EQUITY FUND
(A Portfolio of International Series, Inc.)
Class A Shares and Class C Shares
SUPPLEMENT TO PROSPECTUSES DATED JANUARY 31, 1995
1. Please add the following as a second footnote to the Summary of Fund
Expenses table located on page 1 of the Class A Share's prospectus:
"(1) Class A Shares purchased with proceeds of a redemption of shares of an
unaffiliated investment company purchased and redeemed with a sales load and
not distributed by Federated Securities Corp. may be charged a Contingent
Deferred Sales Charge of .50 of 1.00% for redemptions made within one full
year of purchase. See "Contingent Deferred Sales Charge."
2. Under the section entitled "What Shares Cost" on pages 15 and 16 of the
Class A Share's prospectus, please delete the fourth and last paragraphs and
insert the following:
"No sales load is imposed for Class A 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, or to shareholders designated as
Liberty Life Members. However, investors who purchase Shares through a
trust department, investment adviser, or retirement plan may be charged an
additional service fee by the institution. Additionally, no sales load is
imposed for Class A Shares purchased through "wrap accounts" or similar
programs, under which clients pay a fee or fees for services."
3. Under the section entitled "Dealer Concession" on page 16 of the Class A
Share's prospectus, please delete the last paragraph and insert the
following:
"Effective June 1, 1995, and until further notice, the entire amount of the
applicable sales load will be reallowed to dealers. In addition, the
distributor will pay dealers additional bonus payments in an amount equal to
.50 of 1.00% of the public offering price of shares sold."
4. Please insert the following after the section entitled "Directly from the
Fund" on page 22 of the Class A Share's prospectus. In addition, please
insert the heading "Contingent Deferred Sales Charge" into the Table of
Contents page immediately following the heading "Directly from the Fund."
"CONTINGENT DEFERRED SALES CHARGE
Class A Shares purchased under a periodic special offering with the proceeds
of a redemption of shares of an unaffiliated investment company purchased or
redeemed with a sales load and not distributed by Federated Securities Corp.
may be charged a contingent deferred sales charge of .50 of 1.00% for
redemptions made within one full year of purchase. Any applicable
contingent deferred sales charge will be imposed on the lesser of the net
asset value of the redeemed Shares at the time of purchase or the net asset
value of the redeemed Shares at the time of redemption.
The contingent deferred sales charge will be deducted from the redemption
proceeds otherwise payable to the shareholder and will be retained by the
distributor. The contingent deferred sales charge will not be imposed with
respect to: (1) Shares acquired through the reinvestment of dividends or
distributions of long-term capital gains; and (2) Shares held for more than
one full year from the date of purchase with respect to applicable Class A
Shares. Redemptions will be processed in a manner intended to maximize the
amount of redemption which will not be subject to a contingent deferred
sales charge. In computing the amount of the applicable contingent deferred
sales charge, redemptions are deemed to have occurred in the following
order: (1) Shares acquired through the reinvestment of dividends and
long-term capital gains; (2) Shares held for more than one full year from
the date of purchase with respect to applicable Class A Shares; and (3)
Shares held for less than one full year from the date of purchase with
respect to applicable Class A Shares on a first-in, first-out basis. A
contingent deferred sales charge is not assessed in connection with an
exchange of Fund Shares for shares of other funds in the Liberty Family of
Funds in the same class (see "Exchange Privilege"). Any contingent deferred
sales charge imposed at the time the exchanged-for shares are redeemed is
calculated as if the shareholder had held the shares from the date on which
he became a shareholder of the exchanged-from shares. Moreover, the
contingent deferred sales charge will be eliminated with respect to certain
redemptions (see "Elimination of Contingent Deferred Sales Charge")."
5. In the Class C Share's prospectus, please delete the section entitled
"Contingent Deferred Sales Charge," beginning on page 19, and replace with
the following:
"CONTINGENT DEFERRED SALES CHARGE
Shareholders redeeming Class C Shares from their Fund accounts within one
full year of the purchase date of those Shares will be charged a contingent
deferred sales charge by the Fund's distributor of 1.00%. Any applicable
contingent deferred sales charge will be imposed on the lesser of the net
asset value of the redeemed Shares at the time of purchase or the net asset
value of the redeemed Shares at the time of redemption.
The contingent deferred sales charge will be deducted from the redemption
proceeds otherwise payable to the shareholder and will be retained by the
distributor. The contingent deferred sales charge will not be imposed with
respect to: (1) Shares acquired through the reinvestment of dividends or
distributions of long-term capital gains; and (2) Shares held for more than
one full year from the date of purchase with respect to Class C Shares.
Redemptions will be processed in a manner intended to maximize the amount of
redemption which will not be subject to a contingent deferred sales charge.
In computing the amount of the applicable contingent deferred sales charge,
redemptions are deemed to have occurred in the following order: (1) Shares
acquired through the reinvestment of dividends and long-term capital gains;
(2) Shares held for more than one full year from the date of purchase with
respect to Class C Shares; and (3) Shares held for less than one full year
from the date of purchase with respect to Class C Shares on a first-in,
first-out basis. A contingent deferred sales charge is not assessed in
connection with an exchange of Fund Shares for shares of other funds in the
Liberty Family of Funds in the same class (see "Exchange Privilege"). Any
contingent deferred sales charge imposed at the time the exchanged-for
shares are redeemed is calculated as if the shareholder had held the shares
from the date on which he became a shareholder of the exchanged-from shares.
Moreover, the contingent deferred sales charge will be eliminated with
respect to certain redemptions (see "Elimination of Contingent Deferred
Sales Charge")."
6. In both the Class A Share's and Class C Share's prospectuses, please
insert the following after the section entitled "Contingent Deferred Sales
Charge." In addition, please insert the heading "Elimination of Contingent
Deferred Sales Charge" into each Table of Contents page after
"Contingent Deferred Sales Charge."
"ELIMINATION OF CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge will not be charged in connection with
exchanges of like Shares in other Liberty Family Funds.
The contingent deferred sales charge will be eliminated with respect to the
following redemptions:(1) redemptions following the death or
disability, as defined in Section 72(m)(7) of the Internal Revenue
Code of 1986, as amended, of a shareholder; (2) redemptions representing
minimum required distributions from an Individual Retirement Account or
other retirement plan to a shareholder who has attained the age of 70-1/2;
and (3) involuntary redemptions by the Fund of Shares in shareholder
accounts that do not comply with the minimum balance requirements. No
contingent deferred sales charge will be imposed on redemptions of Shares
held by Directors, employees, and sales representatives of the Fund, the
distributor, or affiliates of the Fund or distributor; employees of any
financial institution that sells Shares of the Fund pursuant to a sales
agreement with the distributor; and spouses and children under the age of 21
of the aforementioned persons. Finally, no contingent deferred sales charge
will be imposed on the redemption of Shares originally purchased through a
bank trust department, an investment adviser registered under the Investment
Advisers Act of 1940, as amended, or any other financial institution, to the
extent that no payments were advanced for purchases made through such
entities. The Directors reserve the right to discontinue elimination of the
contingent deferred sales charge. Shareholders will be notified of such
elimination. Any Shares purchased prior to the termination of such waiver
would have the contingent deferred sales charge eliminated as provided in
the Fund's prospectus at the time of the purchase of the Shares. If a
shareholder making a redemption qualifies for an elimination of the
contingent deferred sales charge, the shareholder must notify Federated
Securities Corp. or the transfer agent in writing that he is entitled to
such elimination."
June 16, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
46031P308
46031P407
G01199-01 (6/95)
