WORLD UTILITY FUND
(A Portfolio of World Investment Series, Inc.)
Class A Shares
- --------------------------------------------------------------------------------
Supplement to Prospectus dated April 15, 1994
A. Please delete the Summary of Fund Expenses table on page 1 and insert
the following:
Summary of Fund Expenses
-------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
Class A Shares
Shareholder Transaction Expenses
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price).......................... 5.50%
Maximum Sales Load Imposed on Reinvested Dividends
(as a percentage of offering price).......................... None
Contingent Deferred Sales Charge (as a percentage of original
purchase
price or redemption proceeds as applicable).................. None
Redemption Fee (as a percentage of amount redeemed, if appli-
cable)........................................................ None
Exchange Fee.................................................. None
Annual Class A Shares Operating Expenses*
(As a percentage of projected average net assets)
Management Fee (after waiver) (1)............................. 0.39%
12b-1 Fee..................................................... None
Total Other Expenses.......................................... 0.60%
Shareholder Services Fee.................................... 0.25%
Total Class A Shares Operating Expenses (2)............... 0.99%
</TABLE>
(1)The estimated management fee has been reduced to reflect the
anticipated voluntary waiver of a portion of the management fee. The
adviser can terminate this voluntary waiver at any time at its sole
discretion. The maximum management fee is 1.00%.
(2)The total Class A Shares operating expenses are estimated to be 1.60%
absent the anticipated voluntary waiver of a portion of the
management fee.
* Total Class A Shares Operating Expenses are estimated based on average
expenses expected to be incurred during the period ending November 30,
1994. During the course of this period, expenses may be more or less
than the average amount shown.
The purpose of this table is to assist an investor in understanding
the various costs and expenses that a shareholder of Class A Shares of
the Fund will bear, either directly or indirectly. For more complete
descriptions of the various costs and expenses, see "Investing in Class
A Shares" and "World Investment Series, Inc. Information." Wire-
transferred redemptions of less than $5,000 may be subject to additional
fees.
<TABLE>
<CAPTION>
EXAMPLE 1 year 3 years
------- ------ -------
<S> <C> <C>
You would pay the following expenses on a $1,000 investment,
assuming
(1) 5% annual return and (2) redemption at the end of each
time period................................................. $65 $85
</TABLE>
The above example should not be considered a representation of past or
future expenses. Actual expenses may be greater or less than those
shown. This example is based on estimated data for the Fund's fiscal
year ending November 30, 1994.
The information set forth in the foregoing table and example relates
only to Class A Shares of the Fund. The Fund also offers another class
of shares called Fortress Shares. Class A Shares and Fortress Shares are
subject to certain of the same expenses; however, Fortress Shares are
subject to a maximum sales load of 1.00%, a contingent deferred sales
charge of 1.00%, and a 12b-1 fee of 0.25%. See "Other Classes of
Shares."
B. Please delete the table in the section entitled "What Shares Cost" on
page 17 and insert the following table in its place:
<TABLE>
<CAPTION>
Dealer Concession
Sales Load as Sales Load as a as a Percentage of
Amount of a Percentage of Percentage of Net Public Offering
Transaction Public Offering Price Amount Invested Price
----------- --------------------- ----------------- ------------------
<S> <C> <C> <C>
Less than $50,000 5.50% 5.82% 5.00%
$50,000 but less than
$100,000 4.50% 4.71% 4.00%
$100,000 but less than
$250,000 3.75% 3.90% 3.25%
$250,000 but less than
$500,000 2.50% 2.56% 2.25%
$500,000 but less than
$1,000,000 2.00% 2.04% 1.80%
$1,000,000 or greater 0.00% 0.00% 0.25%*
</TABLE>
*See sub-section entitled "Dealer Concession" below.
C. Please delete the fourth paragraph of the section entitled "What Shares
Cost": and insert the following:
"No sales charge is imposed for Shares purchased through bank trust
departments or 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. However, investors who purchase
Shares through a trust department or investment adviser may be charged
an additional service fee by that institution."
D. Please delete the first two sentences of the sub-section entitled
"Dealer Concession" on page 17, revise the third sentence to read as
follow, and insert the following information:
"In addition to the dealer concession as noted in the table above, the
distributor may offer to pay dealers up to 100% of the sales load
retained by it. Such payments may take the form of cash or promotional
incentives, such as payment of certain expenses of qualified employees
and their spouses to attend informational meetings about the Fund or
other special events at recreational-type facilities, or of items of
material value. In some instances, these incentives will be made
available only to dealers whose employees have sold or may sell
significant amount of Shares. On purchases of $1 million or more, the
investor pays no sales charge; however, the distributor will make twelve
monthly payments to the dealer totaling 0.25% of the public offering
price over the first year following the purchase. Such payments are
based on the original purchase price of the Shares outstanding at each
month end.
The sales charge for Shares sold other than through registered
broker/dealers will be retained by Federated Securities Corp. Federated
Securities Corp. may pay fees to banks out of the sales charge in
exchange for sales and/or administrative services performed on behalf of
the bank's customers in connection with the initiation of customer
accounts and purchasers of Shares."
E. Please add the following information to the first paragraph of the sub-
section entitled "Dealer Concession:"
"On purchases of $1 million or more, the investor pays no sales load;
however, the distributor will make twelve monthly payments to the dealer
totaling 0.25% of the public offering price over the first year
following the purchase. Such payments are based on the original purchase
price of Shares outstanding at each month end."
F. Please delete the first two paragraphs of the sub-section entitled
"Letter of Intent" on page 18 and insert the following:
"If a shareholder intends to purchase at least $50,000 of shares in the
funds in the Liberty Family of Funds over the next 13 months, the sales
load may be reduced by signing a letter of intent to that effect. This
letter of intent includes a provision for a sales load adjustment
depending on the amount actually purchased within the 13-month period
and a provision for the custodian to hold 5.5% of the total amount
intended to be purchased in escrow (in shares) until such purchase is
completed.
The 5.5% held in escrow will be applied to the shareholder's account at
the end of the 13-month period unless the amount specified in the letter
of intent is not purchased. In this event, an appropriate number of
escrowed shares may be redeemed in order to realize the difference in
the sales load."
G. Please delete the second sentence of the first paragraph in the sub-
section entitled "Concurrent Purchases" on page 19 and replace it with
the following:
"For example, if a shareholder concurrently invested $30,000 in one of the
other Liberty Funds with a sales load, and $20,000 in this Fund, the sales
load would be reduced."
September 30, 1994
[logo] FEDERATED SECURITIES CORP.
Distributors
981487101
G00671-10 (9/94)
AMERICAN LEADERS FUND, INC.
Class B Shares
Class C Shares
Fortress Shares
CAPITAL GROWTH FUND
(A Portfolio of Investment Series Funds, Inc.)
Class C Shares
Investment Shares
WORLD UTILITY FUND
(A Portfolio of World Investment Series, Inc.)
Fortress Shares
Supplement to Prospectuses dated July 31, 1994, December 31,
1993, and April 15, 1994, respectively
A.Please revise the last paragraph of the Summary of Fund
Expenses table on page one of the prospectuses to reflect
that Class A Shares of the Fund are subject to a maximum
sales load of 5.5%.
B. Please delete the first sentence of the
second paragraph of the section entitled" Other Classes of
Shares" on page 21 of the American Leaders Fund, Inc.
prospectuses, page 22 of Capital Growth Fund Class C Shares
prospectus, page 19 of Capital Growth Fund Investment
Shares prospectus, and page 25 of World Utility Fund
Fortress Shares prospectus, respectively, and insert the
following in its place:
"Class A Shares offered by the Fund are sold to customers of
financial institutions subject to a front-end sales load of
up to 5.50% ."
September 30, 1994
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated
Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
027128404
027128206
027128305
461444408
461444101
981487200
G00671-02 (9/94)
