WORLD UTILITY FUND
(A portfolio of World Investment Series, Inc.)
Class A Shares
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995
1. Please insert the following footnote to the Summary of Fund Expenses
table on page 1. In addition, insert "(3)" after the line item "Contingent D
eferred Sales Charge (as a percentage of original purchase price or
redemption proceeds, as applicable)."
"(3) Class A Shares purchased with proceeds of a redemption of shares of an
unaffiliated investment company purchased and redeemed with a sales load and
not distributed by Federated Securities Corp. may be charged a Contingent
Deferred Sales Charge of .50 of 1.00% for redemptions made within one full
year of purchase. See "Contingent Deferred Sales Charge."
2. Please delete the last two paragraphs of the section entitled "What
Shares Cost," which begins on page 12, and replace them with the following:
"No sales load is imposed for Class A Shares purchased through bank trust
departments, 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, or to shareholders designated as
Liberty Life Members. However, investors who purchase Shares through a
trust department, investment adviser, or retirement plan may be charged an
additional service fee by the institution. Additionally, no sales load is
imposed for Class A Shares purchased through "wrap accounts" or similar
programs, under which clients pay a fee or fees for services."
3. Please insert the following as the last paragraph of the section entitled
"Dealer Concession" on page 13:
"Effective June 1, 1995, and until further notice, the entire amount of the
applicable sales load will be reallowed to dealers. In addition, the
Distributor will pay dealers additional bonus payments in an amount equal to
.50 of 1.00% of the public offering price of Shares sold."
4. Please delete the section entitled "Contingent Deferred Sales Charge," on
page 18, and replace it with the following:
"CONTINGENT DEFERRED SALES CHARGE
Class A Shares purchased under a periodic special offering with the proceeds
of a redemption of shares of an unaffiliated investment company purchased or
redeemed with a sales load and not distributed by Federated Securities Corp.
may be charged a contingent deferred sales charge of .50 of 1.00% for
redemptions made within one full year of purchase. Any applicable
contingent deferred sales charge will be imposed on the lesser of the net
asset value of the redeemed Shares at the time of purchase or the net asset
value of the redeemed Shares at the time of redemption.
The contingent deferred sales charge will be deducted from the redemption
proceeds otherwise payable to the shareholder and will be retained by the
distributor. The contingent deferred sales charge will not be imposed with
respect to: (1) Shares acquired through the reinvestment of dividends or
distributions of long-term capital gains; and (2) Shares held for more than
one full year from the date of purchase with respect to applicable Class A
Shares. Redemptions will be processed in a manner intended to maximize the
amount of redemption which will not be subject to a contingent deferred
sales charge. In computing the amount of the applicable contingent deferred
sales charge, redemptions are deemed to have occurred in the following
order: (1) Shares acquired through the reinvestment of dividends and long-
term capital gains; (2) Shares held for more than one full year from the
date of purchase with respect to applicable Class A Shares; and (3) Shares
held for less than one full year from the date of purchase with respect to
applicable Class A Shares on a first-in, first-out basis. A contingent
deferred sales charge is not assessed in connection with an exchange of Fund
Shares for shares of other funds in the Liberty Family of Funds in the same
class (see "Exchange Privilege"). Any contingent deferred sales charge
imposed at the time the exchanged-for shares are redeemed is calculated as
if the shareholder had held the shares from the date on which he became a
shareholder of the exchanged-from shares. Moreover, the contingent deferred
sales charge will be eliminated with respect to certain redemptions (see
"Elimination of Contingent Deferred Sales Charge")."
5. Please insert the following immediately following the section entitled
"Contingent Deferred Sales Charge," on page 18. In addition, please insert
the heading "Elimination of Contingent Deferred Sales Charge" into the Table of
Contents page immediately following the heading "Contingent Deferred Sales
Charge."
"ELIMINATION OF CONTINGENT DEFERRED SALES CHARGE
A contingent deferred sales charge will not be charged in connection with
exchanges of Shares for Class A Shares in other Liberty Family Funds.
The contingent deferred sales charge will be eliminated with respect to the
following redemptions: (1) redemptions following the death or
disability, as defined in Section 72(m)(7) of the Internal Revenue Code of
1986, as amended, of a shareholder; (2) redemptions representing minimum
required distributions from an Individual Retirement Account or other
retirement plan to a shareholder who has attained the age of 70-1/2; and (3)
involuntary redemptions by the Fund of Shares in shareholder accounts that
do not comply with the minimum balance requirements. No contingent deferred
sales charge will be imposed on redemptions of Shares held by Directors,
employees, and sales representatives of the Fund, the Distributor, or
affiliates of the Fund or Distributor; employees of any financial
institution that sells Shares of the Fund pursuant to a sales agreement with
the Distributor; and spouses and children under the age of 21 of the
aforementioned persons. Finally, no contingent deferred sales charge will be
imposed on the redemption of Shares originally purchased through a bank
trust department, an investment adviser registered under the Investment
Advisers Act of 1940, as amended, or any other financial institution, to the
extent that no payments were advanced for purchases made through such
entities. The Directors reserve the right to discontinue elimination of the
contingent deferred sales charge. Shareholders will be notified of such
elimination. Any Shares purchased prior to the termination of such waiver
would have the contingent deferred sales charge eliminated as provided in
the Fund's prospectus at the time of the purchase of the Shares. If a
shareholder making a redemption qualifies for an elimination of the
contingent deferred sales charge, the shareholder must notify Federated
Securities Corp. or the transfer agent in writing that he is entitled to
such elimination."
June 2, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
981487101
G01174-01 (5/95)
