TOTAL RETURNS
3/31/97 ANNUALIZED TOTAL RETURN PERCENTAGES WITHOUT THE SALES LOAD:
Inception 1 year 3 year 5 year 10 year Since
Date Inception
FEDERATED 2/69 17.40% 20.13% 16.02% 12.02% 10.78%
AMERICAN LEADERS
FUND
Total return shown is for the Class A Shares and does not reflect the maximum
5.5% sales charge. The total returns including maximum sales charges for one,
three, five, ten years and since inception would have been: 10.95%, 17.88%,
14.71%, 11.39% and 10.56% respectively.
Inception 1 year 3 year 5 year 10 year Since
Date inception
FEDERATED BOND 6/95 6.54% na na na 6.83%
FUND -- A
FEDERATED BOND 5/87 6.51% 7.92% 8.96% na 9.57%
FUND --F
Although the William Penn Quality Income Fund is expected to be merged into
Class A Shares of Federated Bond Fund, performance is also shown for the Class F
Shares to demonstrate the long term performance of the portfolio. Performance of
the Class F Shares differs from that of the Class A Shares due to differences in
charges and expenses.
The above performance does not reflect the Class A Shares' maximum 4.5% sales
charge or the Class F Shares' maximum 1% sales charge or 1% contingent deferred
sales charge applicable to shares redeemed within four years of purchase. The
total returns including maximum sales charges for one, three, five, ten years
and since inception would have been: Federated Bond Fund -A: 1.77%, na, na, na
and 4.09% respectively; and Federated Bond Fund - F: 4.30%, 7.17%, 8.75%, na and
9.46% respectively. Expenses for Federated Bond Fund were 1.05% for A and
1.08% for F as of 3/31/97.
Inception 1 year 3 year 5 year 10 year Since
Date inception
FEDERATED FUND 10/69 4.88% 6.06% 5.29% 7.31% 7.67%
FOR US
GOVERNMENT
SECURITIES
Total return shown is for the Class A Shares and does not reflect the maximum
4.5% sales charge. The total returns including maximum sales charges for one,
three, five, ten years and since inception would have been: .12%, 4.46%, 4.33%,
6.82% and 7.49% respectively.
Inception 1 year 3 year 5 year 10 year Since
Date inception
FEDERATED 8/84 (0.75)% 3.04% 6.29% 5.28% 12.59%
INTERNATIONAL
EQUITY FUND
Total return shown is for the Class A Shares and does not reflect the maximum
5.5% sales charge. The total returns including maximum sales charges for one,
three, five, ten years and since inception would have been: (6.22)%, 1.12%,
5.10%, 4.68% and 12.08% respectively.
Inception 1 year 3 year 5 year 10 year Since
Date inception
FEDERATED 10/90 6.20% 7.39% 7.25% na 8.01%
PENNSYLVANIA
MUNI INCOME FUND
Total return shown is for the Class A Shares and does not reflect the maximum
4.5% sales charge. The total returns including maximum sales charges for one,
three, five, ten years and since inception would have been: 1.46%, 5.77%, 6.26%,
na and 7.25%.
Inception 1 year 3 year 5 year 10 year Since
Date inception
FEDERATED NEW 12/92 6.10% 6.59% na na 6.38%
YORK MUNI INCOME
FUND
Total return shown is for the Class F Shares and does not reflect the maximum
sales charge. The maximum sales charge for Federated New York Municipal Income
Fund is 1.00%. The total returns including maximum sales charges for one,
three, five, ten years and since inception would have been: 4.05%, 5.89%, na, na
and 6.14% respectively. Federated New York Municipal Income Fund also imposes a
contingent deferred sales charge of 1% on shares redeemed within four years of
purchase.
Past performance does not guarantee future results. Investment return and
principal value will fluctuate, so when shares are redeemed, they may be worth
more or less than their original cost.
015708 (4/97)
INVESTMENT SERIES FUNDS, INC.
Federated Investors
Federated Investors Tower
Pittsburgh, Pennsylvania 15222-3779
(412) 288-1900
April 10, 1997
EDGAR Operations Branch
Securities and Exchange Commission
Division of Investment Management
450 Fifth Street, N.W.
Washington, DC 20549
RE:Investment Series Funds, Inc. (the ``Corporation'')
1933 Act File No. 333-23815
1940 Act File No. 811-07021
Dear Sir or Madam:
Pursuant to Regulation 14a-6 of the Securities Exchange Act of 1934 (the
`1934 Act''), enclosed for filing electronically are additional proxy
solicitation materials for the above-referenced Corporation.
The enclosed information is expected to be mailed to shareholders of
Quality Income Portfolio, a portfolio of William Penn Interest Income Fund, on
or about April 25, 1997 in connection with the Special Meeting of Shareholders
to be held on May 29, 1997. The material is intended to supplement the
definitive Prospectus/Proxy, Statement of Additional Information, and form of
proxy of Federated Bond Fund, a portfolio of the above-referenced Corporation,
filed with the Commission on March 24, 1997.
Please note that the enclosed information contains performance information
regarding the Fund as of March 31, 1997, and will be used in lieu of the
performance information as of December 31, 1996 that was filed with the
Commission in the form of additional proxy materials pursuant to Regulation 14a-
6 of the 1934 Act on April 8, 1997.
Any questions or comments with respect to this filing may be directed to
the undersigned at (412) 288-4827.
Very truly yours,
/s/ Jody L. Petras
Jody L. Petras
Senior Compliance Analyst
cc: Byron Bowman
Matthew Hardin
Enclosures
