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stroke
LIMITED TERM FUND
(A PORTFOLIO OF FIXED INCOME SECURITIES, INC.)
INVESTMENT SHARES
Supplement to Prospectus dated January 31, 1994
1.) In your prospectus, please change all references to
"Investment Shares" to be a reference to "Class A Shares."
2.) Immediately following the section entitled "General
Information" on page 3, please insert the following
"Liberty Family of Funds" section. In addition, please add
the heading "Liberty Family of Funds" to the Table of
Contents page after the heading "General Information."
"Liberty Family of Funds
This Fund is a member of a family of mutual
funds, collectively known as the Liberty Family
of Funds. The other funds in the Liberty Family
of Funds are the Class A Shares of:
o American Leaders Fund, Inc., providing
growth of capital and income through high-
quality stocks;
o Capital Growth Fund, providing appreciation
of capital primarily through equity
securities;
o Fund for U.S. Government Securities, Inc.,
providing current income through long-term
U.S. government securities;
o International Equity Fund, providing long-
term capital growth and income through
international securities;
o International Income Fund, providing a high
level of current income consistent with
prudent investment risk through high-quality
debt securities denominated primarily in
foreign currencies;
o Liberty Equity Income Fund, Inc., providing
above-average income and capital appreciation
through income producing equity securities;
o Liberty High Income Bond Fund, Inc.,
providing high current income through high-
yielding, lower-rated corporate bonds;
o Liberty Municipal Securities Fund, Inc.,
providing a high level of current income
exempt from federal regular income tax
through municipal bonds;
o Liberty U.S. Government Money Market Trust,
providing current income consistent with
stability of principal through high-quality
U.S. government securities;
o Liberty Utility Fund, Inc., providing
current income and long-term growth of
income, primarily through electric, gas, and
communications utilities;
o Limited Term Municipal Fund, providing a
high level of current income exempt from
federal regular income tax consistent with
the preservation of principal, primarily
limited to municipal securities;
o Michigan Intermediate Municipal Trust,
providing current income exempt from federal
regular income tax and the personal income
taxes imposed by the state of Michigan and
Michigan municipalities, primarily through
Michigan municipal securities;
o Pennsylvania Municipal Income Fund,
providing current income exempt from federal
regular income tax and the personal income
taxes imposed by the Commonwealth of
Pennsylvania, primarily through Pennsylvania
municipal securities;
o Strategic Income Fund, providing a high
level of current income , primarily through
domestic and foreign corporate debt
obligations;
o Tax-Free Instruments Trust, providing
current income consistent with stability of
principal and exempt from federal income tax,
through high-quality, short-term municipal
securities; and
o World Utility Fund, providing total return
through securities issued by domestic and
foreign companies in the utilities
industries.
Prospectuses for these funds are available by
writing to Federated Securities Corp.
Each of the funds may also invest in certain
other types of securities as described in each
fund's prospectus.
The Liberty Family of Funds provides flexibility
and diversification for an investor's long-term
investment planning. It enables an investor to
meet the challenges of changing market conditions
by offering convenient exchange privileges which
give access to various investment vehicles and by
providing the investment services of a proven,
professional investment adviser."
3.) Please add the following as the final two sentences of the paragraph under
the section entitled "Dealer Concession," which appears on page 14:
"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 the Shares outstanding at each month end."
4.) Immediately following the section entitled "Reinvestment
Privilege" on page 15, please add the following section. In addition, p
lease add the heading "Purchases With Proceeds from
Redemptions of Unaffiliated Investment Companies" to the
Table of Contents page after the heading "Reinvestment
Privilege."
"Purchases With Proceeds from Redemptions of
Unaffiliated Investment Companies. Investors may
purchase Shares at net asset value, without a
sales charge, with the proceeds from the
redemption of shares of a mutual fund which was
sold with a sales charge or commission and was
not distributed by Federated Securities Corp.
(This does not include shares of a mutual fund
which were or would be subject to a contingent
deferred sales charge upon redemption.) The
purchase must be made within 60 days of the
redemption, and Federated Securities Corp. must
be notified by the investor in writing, or by his
financial institution, at the time the purchase
is made."
5.) Please delete in its entirety the section entitled
"Exchange Privilege" on page 15 and delete its reference
from the Table of Contents page.
6.) Please insert the following section entitled "Exchange
Privilege" on page 16 following the section entitled
"Retirement Plans" and before the section entitled
"Redeeming Investment Shares." In addition, please add the
heading "Exchange Privilege " to the Table of Contents page
after the heading "Retirement Plans."
"Exchange Privilege
Class A shareholders may exchange all or some of
their Shares for Class A Shares in other funds in
the Liberty Family of Funds at net asset value.
Neither the Fund nor any of the funds in the
Liberty Family of Funds imposes any additional
fees on exchanges.
Requirements for Exchange
Shareholders using this privilege must exchange
Shares having a net asset value at least equal
to the minimum investment requirements of the
fund into which the exchange is being made.
Before the exchange, the shareholder must receive
the prospectus of the fund into which the
exchange is being made.
This privilege is available to shareholders
resident in any state in which the fund shares
being acquired may be sold. Upon receipt of
proper instructions and required supporting
documents, Shares submitted for exchange are
redeemed and the proceeds invested in Class A
Shares of the other fund. The exchange privilege
may be modified or terminated at any time.
Shareholders will be notified of the modification
or termination of the exchange privilege.
Further information on the exchange privilege and
prospectuses for the Liberty Family of Funds or
certain Federated Funds are available by
contacting the Fund.
Tax Consequences
An exercise of the exchange privilege is treated
as a sale for federal income tax purposes.
Depending upon the circumstances, a capital gain
or loss may be realized.
Making an Exchange
Instructions for exchanges may be given in
writing or by telephone. Written instructions
may require a signature guarantee. Shareholders
of the Fund may have difficulty in making
exchanges by telephone through brokers and other
financial institutions during times of drastic
economic or market changes. If a shareholder
cannot contact his broker or financial
institution by telephone, it is recommended that
an exchange request be made in writing to
Federated Services Company, c/o State Street Bank
and Trust Company, P.O. Box 8604, Boston,
Massachusetts 02266-8604.
Telephone Instructions. Telephone instructions
made by the investor may be carried out only if a
telephone authorization form completed by the
investor is on file with the transfer agent. If
the instructions are given by a broker, a
telephone authorization form completed by the
broker must be on file with the transfer agent.
Shares may be exchanged between two funds by
telephone only if the two funds have identical
shareholder registrations.
Any Shares held in certificate form cannot be
exchanged by telephone, but must be forwarded to
Federated Services Company, c/o State Street Bank
and Trust Company, P.O. Box 8604, Boston,
Massachusetts 02266-8604, and deposited to the
shareholder's account before being exchanged.
Telephone exchange instructions are recorded and
will be binding upon the shareholder. Such
instructions will be processed by 4:00 p.m.
(Eastern time) and must be received by the
transfer agent before that time for Shares to be
exchanged the same day. Shareholders exchanging
into a fund will not receive any dividend that is
payable to shareholders of record on that date.
This privilege may be modified or terminated at
any time.
If reasonable procedures are not followed by the
Fund, it may be liable for losses due to
unauthorized or fraudulent telephone
instructions."
7.) Please delete in its entirety the section entitled
"Redemptions Before Purchase Instruments Clear" on page 18
and delete its reference from the Table of Contents.
8.) Please delete in its entirety the section entitled
"Exchanges for Shares of Other Funds" on page 18 and delete
its reference from the Table of Contents.
9.) Please insert the following section entitled "Other
Payments to Financial Institutions" on page 20 following
the section entitled "Distribution Plan" and before the
section entitled "Administration of the Fund." In
addition, please add the heading "Other Payments to
Financial Institutions" to the Table of Contents page after
the heading "Distribution Plan."
"Other Payments to Financial Institutions. The Adviser or its
affiliates may offer to pay a fee from their own assets
to financial institutions as financial assistance
for providing substantial marketing, sales, and
operational support to the distributor. The
support may include participating in sales,
educational and training seminars at recreational-
type facilities, providing sales literature, and
engineering computer software programs that
emphasize the attributes of the Fund. Such
assistance will be predicated upon the amount of
Shares the financial institution sells or may
sell, and/or upon the type and nature of sales or
operational support furnished by the financial
institution."
10.) Please replace the paragraph following the section entitled
"Administrative Services" on page 20, with the following:
"Federated Administrative Services, a subsidiary
of Federated Investors, provides administrative
personnel and services (including certain legal
and financial reporting services) necessary to
operate the Fund. Federated Administrative
Services provides these at an annual rate which
relates to the average aggregate daily net assets
of all funds advised by subsidiaries of Federated
Investors ("Federated Funds") as specified below:
Maximum Administrative Fee Average Aggregate Daily
Net Assets
of the Federated Funds
0.15 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.10 of 1% on the next $250 million
0.075 of 1% on assets in excess of
$750 million
The administrative fee received during any fiscal
year shall be at least $125,000 per portfolio and
$30,000 per each additional class of shares.
Federated Administrative Services may choose
voluntarily to waive a portion of its fee."
May 31, 1994
FEDERATED SECURITIES CORP.
Distributor
G00138-01 (5/94)
LIMITED TERM FUND
(A PORTFOLIO OF FIXED INCOME SECURITIES, INC.)
FORTRESS SHARES
Supplement to Prospectus dated January 31, 1994
1.) In your prospectus, please change all references to
"Investment Shares" to be a reference to "Class A Shares."
2.) Please delete in its entirety the section entitled
"Redemptions Before Purchase Instruments Clear" on page 20
and delete its reference from the Table of Contents.
3.) Please change the heading "Administrative Arrangements" on
page 22 and the heading "Administrative Arrangements" on
the Table of Contents page to the heading "Other Payments
to Financial Institutions."
4.) Please insert the following as the last three sentences to
first paragraph under the new heading "Other Payments to
Financial Institutions" on page 22:
"Furthermore, the Adviser or its affiliates may offer to pay a fee fro
m their own assets to financial institutions as
financial assistance for providing substantial
marketing, sales, and operational support to the
distributor. The support may include
participating in sales, educational and training
seminars at recreational-type facilities,
providing sales literature, and engineering
computer software programs that emphasize the
attributes of the Fund. Such assistance will be
predicated upon the amount of Shares the
financial institution sells or may sell, and/or
upon the type and nature of sales or operational
support furnished by the financial institution."
5.) Please replace the paragraph following the section entitled
"Administrative Services" on page 23 with the following:
"Federated Administrative Services, a subsidiary
of Federated Investors, provides administrative
personnel and services (including certain legal
and financial reporting services) necessary to
operate the Fund. Federated Administrative
Services provides these at an annual rate which
relates to the average aggregate daily net assets
of all funds advised by subsidiaries of Federated
Investors ("Federated Funds") as specified below:
Maximum Administrative Fee Average Aggregate Daily
Net Assets
of the Federated Funds
0.15 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.10 of 1% on the next $250 million
0.075 of 1% on assets in excess of
$750 million
The administrative fee received during any fiscal
year shall be at least $125,000 per portfolio and
$30,000 per each additional class of shares.
Federated Administrative Services may choose
voluntarily to waive a portion of its fee."
May 31, 1994
FEDERATED SECURITIES CORP.
Distributor
G00138-02 (5/94)
LIMITED TERM FUND
(A PORTFOLIO OF FIXED INCOME SECURITIES, INC.)
Supplement to Combined Statement of Additional Information dated
January 31, 1994
1.) In your Combined Statement of Additional Information,
please change all references to "Investment Shares" to be a
reference to "Class A Shares."
May 31, 1994
FEDERATED SECURITIES CORP.
Distributor
G00138-03 (5/94)
Limited Term Municipal Fund
(A Portfolio of Fixed Income Securities, Inc.)
INVESTMENT SHARES
Supplement to Prospectus dated January 31, 1994
1.)In your prospectus, please change all references to "Investment Shares" to
be a reference to "Class A Shares."
2.)Immediately following the section entitled "General Information" on page 3,
please insert the following "Liberty Family of Funds" section. In
addition, please add the heading "Liberty Family of Funds" to
the Table of Contents page after the heading "General
Information."
"Liberty Family of Funds
This Fund is a member of a family of mutual funds, collectively
known as the Liberty Family of Funds. The other funds in the
Liberty Family of Funds are the Class A Shares of:
o American Leaders Fund, Inc., providing growth of capital and
income through high-quality stocks;
o Capital Growth Fund, providing appreciation of capital
primarily through equity securities;
o Fund for U.S. Government Securities, Inc., providing current
income through long-term U.S. government securities;
o International Equity Fund, providing long-term capital growth
and income through international securities;
o International Income Fund, providing a high level of current
income consistent with prudent investment risk through high-
quality debt securities denominated primarily in foreign
currencies;
o Liberty Equity Income Fund, Inc., providing above-average
income and capital appreciation through income producing equity
securities;
o Liberty High Income Bond Fund, Inc., providing high current
income through high-yielding, lower-rated corporate bonds;
o Liberty Municipal Securities Fund, Inc., providing a high
level of current income exempt from federal regular income tax
through municipal bonds;
o Liberty U.S. Government Money Market Trust, providing current
income consistent with stability of principal through high-
quality U.S. government securities;
o Liberty Utility Fund, Inc., providing current income and long-
term growth of income, primarily through electric, gas, and
communications utilities;
o Limited Term Fund, providing a high level of current income
consistent with minimum fluctuation in principal value through
investment grade securities;
o Michigan Intermediate Municipal Trust, providing current
income exempt from federal regular income tax and the personal
income taxes imposed by the state of Michigan and Michigan
municipalities, primarily through Michigan municipal securities;
o Pennsylvania Municipal Income Fund, providing current income
exempt from federal regular income tax and the personal income
taxes imposed by the Commonwealth of Pennsylvania, primarily
through Pennsylvania municipal securities;
o Strategic Income Fund, providing a high level of current
income , primarily through domestic and foreign corporate debt
obligations;
o Tax-Free Instruments Trust, providing current income
consistent with stability of principal and exempt from federal
income tax, through high-quality, short-term municipal
securities; and
o World Utility Fund, providing total return through securities
issued by domestic and foreign companies in the utilities
industries.
Prospectuses for these funds are available by writing to
Federated Securities Corp.
Each of the funds may also invest in certain other types of
securities as described in each fund's prospectus.
The Liberty Family of Funds provides flexibility and
diversification for an investor's long-term investment planning.
It enables an investor to meet the challenges of changing market
conditions by offering convenient exchange privileges which give
access to various investment vehicles and by providing the
investment services of a proven, professional investment
adviser."
3.) Please add the following as the final two sentences of the paragraph
under the section entitled "Dealer Concession," which appears on page 14:
"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 the Shares outstanding at each
month end."
4.) Immediately following the section entitled "Reinvestment Privilege
" on page 15, please add the following section. In addition,
please add the heading "Purchases With Proceeds from Redemptions
of Unaffiliated Investment Companies" to the Table of Contents
page after the heading "Reinvestment Privilege."
"Purchases With Proceeds from Redemptions of Unaffiliated
Investment Companies. Investors may purchase Shares at net
asset value, without a sales charge, with the proceeds from the
redemption of shares of a mutual fund which was sold with a
sales charge or commission and was not distributed by Federated
Securities Corp. (This does not include shares of a mutual fund
which were or would be subject to a contingent deferred sales
charge upon redemption.) The purchase must be made within 60
days of the redemption, and Federated Securities Corp. must be
notified by the investor in writing, or by his financial
institution, at the time the purchase is made."
5.)Please delete in its entirety the section entitled "Exchange Privilege" on
page 15 and delete its reference from the Table of Contents page.
6.)Please insert the following section entitled "Exchange Privilege" on page 16
before the section entitled "Redeeming Investment Shares." In
addition, please add the heading "Exchange Privilege " to the
Table of Contents page before the heading "Redeeming Investment
Shares."
"Exchange Privilege
Class A shareholders may exchange all or some of their Shares
for Class A Shares in other funds in the Liberty Family of Funds
at net asset value. Neither the Fund nor any of the funds in
the Liberty Family of Funds imposes any additional fees on
exchanges.
Requirements for Exchange
Shareholders using this privilege must exchange Shares having a
net asset value at least equal to the minimum investment
requirements of the fund into which the exchange is being made.
Before the exchange, the shareholder must receive the prospectus
of the fund into which the exchange is being made.
This privilege is available to shareholders resident in any
state in which the fund shares being acquired may be sold. Upon
receipt of proper instructions and required supporting
documents, Shares submitted for exchange are redeemed and the
proceeds invested in Class A Shares of the other fund. The
exchange privilege may be modified or terminated at any time.
Shareholders will be notified of the modification or termination
of the exchange privilege.
Further information on the exchange privilege and prospectuses
for the Liberty Family of Funds or certain Federated Funds are
available by contacting the Fund.
Tax Consequences
An exercise of the exchange privilege is treated as a sale for
federal income tax purposes. Depending upon the circumstances,
a capital gain or loss may be realized.
Making an Exchange
Instructions for exchanges may be given in writing or by
telephone. Written instructions may require a signature
guarantee. Shareholders of the Fund may have difficulty in
making exchanges by telephone through brokers and other
financial institutions during times of drastic economic or
market changes. If a shareholder cannot contact his broker or
financial institution by telephone, it is recommended that an
exchange request be made in writing to Federated Services
Company, c/o State Street Bank and Trust Company, P.O. Box 8604,
Boston, Massachusetts 02266-8604.
Telephone Instructions. Telephone instructions made by the
investor may be carried out only if a telephone authorization
form completed by the investor is on file with the transfer
agent. If the instructions are given by a broker, a telephone
authorization form completed by the broker must be on file with
the transfer agent. Shares may be exchanged between two funds
by telephone only if the two funds have identical shareholder
registrations.
Any Shares held in certificate form cannot be exchanged by
telephone, but must be forwarded to Federated Services Company,
c/o State Street Bank and Trust Company, P.O. Box 8604, Boston,
Massachusetts 02266-8604, and deposited to the shareholder's
account before being exchanged. Telephone exchange instructions
are recorded and will be binding upon the shareholder. Such
instructions will be processed by 4:00 p.m. (Eastern time) and
must be received by the transfer agent before that time for
Shares to be exchanged the same day. Shareholders exchanging
into a fund will not receive any dividend that is payable to
shareholders of record on that date. This privilege may be
modified or terminated at any time.
If reasonable procedures are not followed by the Fund, it may be
liable for losses due to unauthorized or fraudulent telephone
instructions."
7.)Please delete in its entirety the section entitled "Redemption Before
Purchase Instruments Clear" on page 17 and delete its reference from the
Table of Contents.
8.)Please delete in its entirety the section entitled "Exchanges for Shares of
Other Funds" on page 18 and delete its reference from the Table of
Contents.
9.)Please insert the following section entitled "Other Payments to Financial
Institutions" on page 20 following the section entitled "Distribution
Plan" and before the section entitled "Administration of the
Fund." In addition, please add the heading "Other Payments to
Financial Institutions" to the Table of Contents page after the
heading "Distribution Plan." "Other Payments to Financial Institutions.
The Adviser or its affiliates may offer to pay
a fee from their own assets to financial institutions as
financial assistance for providing substantial marketing, sales,
and operational support to the distributor. The support may
include participating in sales, educational and training
seminars at recreational-type facilities, providing sales
literature, and engineering computer software programs that
emphasize the attributes of the Fund. Such assistance will be
predicated upon the amount of Shares the financial institution
sells or may sell, and/or upon the type and nature of sales or
operational support furnished by the financial institution."
10.)Please replace the paragraph following the section entitled
"Administrative Services" on page 20, with the following:
"Federated Administrative Services, a subsidiary of Federated
Investors, provides administrative personnel and services
(including certain legal and financial reporting services)
necessary to operate the Fund. Federated Administrative
Services provides these at an annual rate which relates to the
average aggregate daily net assets of all funds advised by
subsidiaries of Federated Investors ("Federated Funds") as
specified below:
Maximum Administrative Fee Average Aggregate Daily Net
Assets of the Federated Funds
0.15 of 1%on the first $250 million
0.125 of 1%on the next $250 million
0.10 of 1%on the next $250 million
0.075 of 1%on assets in excess of $750 million
The administrative fee received during any fiscal year shall be
at least $125,000 per portfolio and $30,000 per each additional
class of shares. Federated Administrative Services may choose
voluntarily to waive a portion of its fee."
May 31, 1994
FEDERATED SECURITIES CORP.
Distributor
G00140-01 (5/94)
LIMITED TERM MUNICIPAL FUND
(A PORTFOLIO OF FIXED INCOME SECURITIES, INC.)
FORTRESS SHARES
Supplement to Prospectus dated January 31, 1994
1.) In your prospectus, please change all references to
"Investment Shares" to be a reference to "Class A Shares."
2.) Please delete in its entirety the section entitled
"Redemptions Before Purchase Instruments Clear" on page 20
and delete its reference from the Table of Contents.
3.) Please change the heading "Administrative Arrangements" on
page 22 and the heading "Administrative Arrangements" on
the Table of Contents page to the heading "Other Payments
to Financial Institutions."
4.) Please insert the following as the last three sentences to
first paragraph under the new heading "Other Payments to
Financial Institutions" on page 22:
"Furthermore, the Adviser or its affiliates may offer to pay a fee
from their own assets to financial institutions as
financial assistance for providing substantial
marketing, sales, and operational support to the
distributor. The support may include
participating in sales, educational and training
seminars at recreational-type facilities,
providing sales literature, and engineering
computer software programs that emphasize the
attributes of the Fund. Such assistance will be
predicated upon the amount of Shares the
financial institution sells or may sell, and/or
upon the type and nature of sales or operational
support furnished by the financial institution."
5.) Please replace the paragraph following the section entitled
"Administrative Services" on page 23 with the following:
"Federated Administrative Services, a subsidiary
of Federated Investors, provides administrative
personnel and services (including certain legal
and financial reporting services) necessary to
operate the Fund. Federated Administrative
Services provides these at an annual rate which
relates to the average aggregate daily net assets
of all funds advised by subsidiaries of Federated
Investors ("Federated Funds") as specified below:
Maximum Administrative Fee Average Aggregate Daily
Net Assets
of the Federated Funds
0.15 of 1% on the first $250 million
0.125 of 1% on the next $250 million
0.10 of 1% on the next $250 million
0.075 of 1% on assets in excess of
$750 million
The administrative fee received during any fiscal
year shall be at least $125,000 per portfolio and
$30,000 per each additional class of shares.
Federated Administrative Services may choose
voluntarily to waive a portion of its fee."
May 31, 1994
FEDERATED SECURITIES CORP.
Distributor
G00140-02 (5/94)
LIMITED TERM MUNICIPAL FUND
(A PORTFOLIO OF FIXED INCOME SECURITIES, INC.)
Supplement to Combined Statement of Additional Information dated
January 31, 1994
1.) In your Combined Statement of Additional Information,
please change all references to "Investment Shares" to be a
reference to "Class A Shares."
May 31, 1994
FEDERATED SECURITIES CORP.
Distributor
G00140-03 (5/94)
