FORTRESS BOND FUND
(A Portfolio of Investment Series Funds, Inc.)
Supplement to Prospectus dated December 31, 1993
1. Please insert the following sub-section after the sub-
section entitled "Adviser's Background" on page 20:
"Other Payments to Financial Institutions. The
Distributor will pay financial institutions, for
distribution and/or administrative services, an amount
equal to 1.00% of the offering price of the shares
acquired by their clients or customers on purchases up
to $1,999,999, .50% of the offering price on purchases
of $2,000,000 to $4,999,999, and .25% of the offering
price on purchases of $5,000,000 or more. (This fee
is in addition to the 1.00% sales load on purchases of
less than $1 million.) The financial institutions may
elect to waive the initial payment described above;
such waiver will result in the waiver by the Fund of
the otherwise applicable contingent deferred sales
charge.
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
sponsoring sales, educational and training seminars
for their employees, 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 dealer sells
or may sell, and/or upon the type and nature of sales
or operational support furnished by the dealer."
2. Please replace the sub-section entitled "Administrative
Services" on page 20 with the following:
"Administrative Services. 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:
Average Aggregate Daily Net
Maximum Administrative Fee 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."
June 15, 1994
FEDERATED SECURITIES CORP.
Distributor
G00244-01 (6/94)
