Limited Term Fund
(A portfolio of Fixed Income Securities, Inc.)
Class A Shares
Supplement to Prospectus dated January 31, 1995
1. Please add footnote (4) to the Summary of Fund Expenses table on page 1 of
the prospectus and replace it with the following:
"(4) 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.Please delete the first paragraph of the section entitled "What Shares Cost,"
which begins on page 15 of the prospectus, and replace it with the following:
"Shares are sold at their net asset value next determined after an order is
received, plus a sales load of 1% of the offering price (which is 1.
01% of the net amount invested). There is no sales load for purchases of
$1 million or more. In addition, 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. Please delete the section entitled "Contingent Deferred Sales
Charge" on page 20, and replace it with the following:
"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")."
4. Please insert the following as a new section immediately following the
section
entitled "Contingent Deferred Sales Charge." In addition, please insert the
heading "Elimination of Contingent Deferred Sales Charge" into the Table of
Contents page immediately following the heading "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 30, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
338319106
G00138-04 (6/95)
CMR506013
