Federated Strategic Income Fund
Class A Shares
Class B Shares
Class C Shares
Class F Shares
(A Portfolio of Fixed Income Securities, Inc.)
Supplement to Prospectuses dated January 31, 1999
1. Please revise paragraph eight under the section entitled "What are the Fund's
Investment Strategies?" to read as follows:
"In implementing this strategy, the Adviser may invest up to 100% of its
foreign securities allocation in emerging market countries. Many
emerging market countries issue securities rated below investment
grade."
2. Please add the following immediately after the paragraph entitled "Risks of
Foreign Investing" under the section entitled "What are the Specific Risks
of Investing in the Fund?":
"RISKS OF INVESTING IN EMERGING MARKET COUNTRIES
OSecurities issued or traded in emerging markets generally entail
greater risks than securities issued or traded in developed markets. For
example, the prices of such securities may be significantly more
volatile than prices of securities in developed countries. Emerging
market economies may also experience more severe downturns (with
corresponding currency devaluations) than developed economies.
OEmerging market countries may have relatively unstable governments and
may present the risks of nationalization of businesses, expropriation,
confiscatory taxation or, in certain instances, reversion to closed
market, centrally planned economies.
oThe Adviser is seeking information regarding the Year 2000 readiness of
issuers or Fund service providers located in emerging market countries.
The year 2000 problem is the potential for computer errors or failures
because certain computer systems may be unable to interpret dates after
December 31, 1999, or may experience other date-related problems.
However, such Year 2000 information may not exist, or may be incomplete,
inaccurate or difficult to obtain. As a result, the Adviser might not be
able to assess accurately or avoid the potential effects of the Year
2000 problem on these companies, and this problem could result in
material losses to the Fund."
September 30, 1999
Cusip 338319700
Cusip 338319866
Cusip 338319809
Cusip 338319882
G01055-09 (9/99)
