FEDERATED ULTRASHORT BOND FUND
A portfolio of Federated Total Return Series, Inc.
INSTITUTIONAL SERVICE SHARES
SUPPLEMENT TO THE PROSPECTUS DATED NOVEMBER 30, 1999
The Fund now offers two classes of shares: Institutional Shares and
Institutional Service Shares, each representing interests in a single portfolio
of securities. Each Share class has different expenses, which affect their
performance. Contact your investment professional or call 1-800-341-7400 for
more information concerning the other class.
The Fund's Institutional Service Shares expect to pay and accrue the
distribution (12b-1) fee for the fiscal year ending September 30, 2000. This
action will not increase the overall expenses of the Fund. Accordingly, please
replace the Fund's Fees and Expenses table in your prospectus with the
following:
WHAT ARE THE FUND'S FEES AND EXPENSES?
FEDERATED ULTRASHORT BOND FUND
FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and hold
Shares of the Fund's Institutional Service Shares.
SHAREHOLDER FEES
FEES PAID DIRECTLY FROM YOUR INVESTMENT
<TABLE>
<CAPTION>
<S> <C>
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of None
offering price)..........................................
Maximum Deferred Sales Charge (Load) (as a percentage of original
purchase price or redemption proceeds, as applicable) None
................................................................................
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other
Distributions) (as a percentage of offering None
price).........................................................................
Redemption Fee (as a percentage of amount redeemed, if None
applicable)..................................................................
Exchange Fee.................................................. None
ANNUAL FUND OPERATING EXPENSES (Before Waivers)1
EXPENSES THAT ARE DEDUCTED FROM FUND ASSETS (AS A PERCENTAGE OF AVERAGE
NET ASSETS)
Management Fee2.................................................................0.60%
Distribution (12b-1) Fee3.......................................................0.25%
Shareholder Services Fee........................................................0.25%
Other Expenses..................................................................0.19%
Total Annual Fund Operating Expenses4...........................................1.29%
1 Although not contractually obligated to do so, the Adviser and
distributor will waive certain amounts. These are shown below along with the
net expenses the Fund EXPECTS TO PAY for the fiscal year ending September 30,
2000.
Total Waiver of Fund Expenses.................................................0.49%
Total Actual Annual Fund Operating Expenses (after 0.80%
waivers)......................................................................
</TABLE>
2 The Adviser expects to voluntarily waive a portion of the management fee. The
Adviser can terminate this anticipated voluntary waiver at any time. The
management fee the Fund expects to pay (after the anticipated voluntary
waiver) is 0.16% for the fiscal year ending September 30, 2000.
3 The distributor expects to voluntarily waive a portion of the distribution
(12b-1) fee. The distributor can terminate this anticipated voluntary waiver
at any time. The distribution (12b-1) fee the Fund's Institutional Service
Shares expect to pay (after the anticipated voluntary waiver) is 0.20% for the
fiscal year ending September 30, 2000.
4 For the fiscal year ended September 30, 1999, the Fund had Total Annual Fund
Operating Expenses and Total Actual Annual Fund Operating Expenses of 1.51%
and 0.77%, respectively.
EXAMPLE
This example is intended to help you compare the cost of investing in the Fund's
Institutional Service Shares with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Fund's Institutional Service
Shares for the time periods indicated and then redeem all of your Shares at the
end of those periods. The Example also assumes that your investment has a 5%
return each year and that the Fund's Institutional Service Shares operating
expenses are BEFORE WAIVERS as estimated in the table and remain the same.
Although your actual costs and returns may be higher or lower, based on these
assumptions your costs would be:
1 Year 3 Years 5 Years 10 Years
$131 $409 $708 $1,556
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May 30, 2000
Cusip 31428Q606
25483(5/00)
