WORLD INVESTMENT SERIES INC, 497, 1999-07-30

WORLD INVESTMENT SERIES INC
497, 1999-07-30

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PROSPECTUS

Federated Asia Pacific Growth Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

A mutual fund seeking long-term growth of capital by investing primarily in
equity securities of Asian and Pacific Rim companies.

As with all mutual funds, the Securities and Exchange Commission has not
approved or disapproved these securities or passed upon the adequacy of this
prospectus, and any representation to the contrary is a criminal offense.

Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 5
What are the Specific Risks of Investing in the Fund? 7
What do Shares Cost? 8
How is the Fund Sold? 11
How to Purchase Shares 12
How to Redeem and Exchange Shares 14
Account and Share Information 17
Who Manages the Fund? 17
Financial Information 19

MARCH 31, 1999

REVISED JULY 31, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The Fund's investment objective is to provide long- term growth of capital.
While there is no assurance that the Fund will achieve its investment objective,
it endeavors to do so by following the investment strategies and policies
described in this prospectus.

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund pursues its investment objective by investing at least 65% of its
assets in equity securities of companies located in Asia and the Pacific Rim.
The adviser intends to focus its investments in the most developed capital
markets of Asia and the Pacific Rim.

In selecting countries in which to invest, the adviser reviews the county's
economic outlook, including its interest and inflation rates, and the political
and foreign exchange risk of investing in a particular country. In selecting
investments for the portfolio the adviser looks for companies which are
positioned for rapid growth in revenues or earnings and assets.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

All mutual funds take investment risks. Therefore, it is possible to lose money
by investing in the Fund. The primary factors that may reduce the Fund's returns
include: . investing in smaller, developing capital markets in Asian and Pacific
Rim countries, . fluctuations in the value of equity securities in foreign
securities markets; . fluctuations in the exchange rate between the U.S. dollar
and foreign currencies; . the foreign markets in which the Fund invests may be
subject to economic or political conditions which are less favorable than those
of the United States and may lack financial reporting standards or regulatory
requirements comparable to those applicable to U.S. companies; . prices of
emerging market securities in which the Fund invests can be significantly more
volatile than prices of securities in developed countries; . the Fund may invest
a significant portion of its assets in a particular geographic region, which
makes it subject to greater currency risk and more susceptible to adverse impact
from actions of foreign governments; and . the foreign securities in which the
Fund invests may trade infrequently and may be subject to greater fluctuation in
price than other securities.

The Shares offered by this prospectus are not deposits or obligations of any
bank, are not endorsed or guaranteed by any bank and are not insured or
guaranteed by the U.S. government, the Federal Deposit Insurance Corporation,
the Federal Reserve Board, or any other government agency.

Risk/Return Bar Chart and Table

The graphic presentation displayed here consists of a bar chart representing the
annual total returns of Class A Shares of Federated Asia Pacific Growth Fund as
of the calendar year-end for each of two years.

The `y' axis reflects the "% Total Return" beginning with "(30%)" and increasing
in increments of 6% up to 0%.

The `x' axis represents calculation periods from the earliest first full
calendar year end of the Fund's Class A Shares start of business through the
calendar year ended 1998. The light gray shaded chart features two distinct
vertical bars, each shaded in charcoal, and each visually representing by height
the total return percentages for the calendar year stated directly at its base.
The calculated total return percentage for the Fund for each calendar year is
stated directly at the top of each respective bar, for the calendar years 1997
through 1998, The percentages noted are: (26.97%) and (7.36%).

The bar chart shows the variability of the Fund's Class A Shares total returns
on a calendar year-end basis.

The Fund's Class A Shares are sold subject to a sales charge (load). The impact
of the sales charges are not reflected in the total returns above, and if these
amounts were reflected, returns would be less than those shown.

The Fund's Class A Shares total return from January 1, 1999 to June 30, 1999 was
42.21%. This total return reflects six months of performance.

Within the period shown in the Chart, the Fund's Class A Shares highest
quarterly return was 20.57% (quarter ended December 31, 1998). Its lowest
quarterly return was (25.93%) (quarter ended December 31, 1997).

Average Annual Total Return

Calendar Period 1 Year Start of
Performance/1/

<S> <C> <C>
Class A (12.48%) (14.40%)
Class B (13.05%) (14.46%)
Class C (8.63%) (13.09%)
MSCI-AP 0.53% (13.20%)
</TABLE>

1 The Fund's Class A, Class B and Class C Shares start of performance date was
February 28, 1996.

The table shows the Fund's Class A, Class B and Class C Shares average annual
total returns (reduced to reflect applicable sales charges) compared to the
Morgan Stanley Capital International Asia Pacific Index (MSCI-AP), for the
calendar periods ending December 31, 1998. The MSCI-AP is a market value-
weighted index of the performance of securities listed in the stock exchanges
of 15 countries in the Pacific and Asian regions.

Past performance does not necessarily predict future performance. This
information provides you with historical performance information so that you can
analyze whether the Fund's investment risks are balanced by its potential
rewards.

What are the Fund's Fees and Expenses?

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund's Class A, B, or C Shares.

Shareholder Fees Class A Class B Class C
Fees Paid Directly From Your Investment
<S> <C> <C> <C>
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 5.50% None None

Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price

or redemption proceeds, as applicable) 0.00% 5.50% 1.00%

Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions)

(as a percentage of offering price) None None None

Redemption Fee (as a percentage of amount redeemed, if applicable) None None None
Exchange Fee None None None

Annual Fund Operating Expenses (Before Reimbursements and Waivers)/1/
Expenses That are Deducted From Fund Assets (as a percentage of average net assets)

Management Fee/2/ 1.10% 1.10% 1.10%
Distribution (12b-1) Fee/3/ 0.25% 0.75% 0.75%
Shareholder Services Fee 0.25% 0.25% 0.25%
Other Expenses/4/ 4.28% 4.28% 4.28%
Total Annual Fund Operating Expenses 5.88% 6.38%/5/ 6.38%
1 Although not contractually obligated to do so, the adviser waived and reimbursed and the distributor waived certain amounts.

These are shown below along with the net expenses the Fund actually paid for
the fiscal year ended November 30, 1998. Reimbursements and Waivers of Fund
Expenses 4.03% 3.78% 3.78% Total Actual Annual Fund Operating Expenses
(after reimbursements and waivers) 1.85% 2.60% 2.60%

2 The adviser voluntarily waived a portion of the management fee. The adviser
can terminate this voluntary waiver at any time. The management fee paid by
the Fund (after the voluntary waiver) was 0.00% for the year ended November
30, 1998.

3 Class A Shares did not pay or accrue the distribution (12b-1) fee during the
fiscal year ended November 30, 1998. Class A Shares have no present
intention of paying or accruing the distribution (12b-1) fee during the year
ending November 30, 1999.

4 The adviser voluntarily reimbursed certain operating expenses of the Fund.
The adviser can terminate this voluntary reimbursement at any time. Total
other expenses paid by the Fund (after the voluntary reimbursement) were
1.60% for the year ended November 30, 1998.

5 Class B Shares convert to Class A Shares (which pay lower ongoing expenses)
approximately eight years after purchase. </TABLE>

EXAMPLE

The following Example is intended to help you compare the cost of investing in
the Fund's Class A Shares, Class B Shares and Class C Shares with the cost of
investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund's Class A, Class B,
and Class C Shares for the time periods indicated and then redeem all of your
Shares at the end of those periods. Expenses assuming no redemption are also
shown. The Example also assumes that your investment has a 5% return each year
and that the Fund's Class A, Class B, and Class C Shares operating expenses are
before reimbursements and waivers as shown in the Table and remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be: <TABLE> <CAPTION> Share Class 1 Year 3 Years 5 Years 10
Years Class A <S> <C> <C> <C> <C> Expenses assuming redemption $1,103 $2,195
$3,268 $5,868

Expenses assuming no

redemption $1,103 $2,195 $3,268 $5,868

Class B
Expenses assuming

redemption $1,184 $2,275 $3,282 $5,874

Expenses assuming no

redemption $ 634 $1,875 $3,082 $5,874

Class C
Expenses assuming

redemption $ 734 $1,875 $3,082 $5,957

Expenses assuming no

redemption $ 634 $1,875 $3,082 $5,957

</TABLE>

What are the Fund's Investment Strategies?

In selecting countries in which to invest, the adviser reviews the county's
economic outlook, including its interest and inflation rates, and the political
and foreign exchange risk of investing in a particular country. The adviser uses
the Morgan Stanley Asia Pacific Free Index (Index) as a benchmark in selecting
the weightings of countries contained in the portfolio. The adviser may deviate
from the country weightings in the Index when it believes that performance may
be enhanced by doing so. The adviser then analyzes companies located in each
particular country.

In selecting investments for the portfolio the adviser looks for companies
which are positioned for rapid growth in revenues or earnings and assets. The
adviser evaluates the quality of each company's management, its market share in
domestic and export markets, and the uniqueness of its product line. The adviser
may also meet with company representatives, company suppliers, customers, or
competitors. Based on this information, the adviser evaluates the sustainability
of the company's current growth trends and potential catalysts for increased
growth. Using this type of fundamental analysis, the adviser tries to select
securities that offer the best potential returns consistent with its general
portfolio strategy.

PORTFOLIO TURNOVER

The Fund actively trades its portfolio securities in an attempt to achieve its
investment objective. Active trading will cause the Fund to have an increased
portfolio turnover rate, which is likely to generate shorter-term gains (losses)
for its shareholders, which are taxed at a higher rate than longer-term gains
(losses). Actively trading portfolio securities increases the Fund's trading
costs and may have an adverse impact on the Fund's performance.

TEMPORARY DEFENSIVE INVESTMENTS

The Fund may temporarily depart from its principal investment strategies by
investing its assets in cash, cash items, and shorter-term, higher-quality debt
securities and similar obligations. It may do this to minimize potential losses
and maintain liquidity to meet shareholder redemptions during adverse market
conditions. This may cause the Fund to give up greater investment returns to
maintain the safety of principal, that is, the original amount invested by
shareholders.

What are the Principal Securities in Which the Fund Invests?

ASIAN AND PACIFIC RIM FOREIGN SECURITIES

The Fund considers an issuer to be an Asian or Pacific Rim company if:
. it is organized under the laws of, or has a principal office located in, an

Asian or Pacific Rim country;

. the principal trading market for its securities is in an Asian or Pacific

Rim country; or

. it (or its subsidiaries) derived in its most current fiscal year at least
50% of its total assets, capitalization, gross revenue or profit from goods
produced, services performed, or sales made in an Asian or Pacific Rim
country.

Asian and Pacific Rim securities are often denominated in foreign currencies.
Along with the risks normally associated with domestic equity securities, Asian
and Pacific Rim securities are subject to currency risks and risks of foreign
investing.

DEPOSITARY RECEIPTS

Depositary receipts represent interests in underlying securities issued by a
foreign company. Depositary receipts are not traded in the same market as the
underlying security. American Depositary Receipts (ADRs) provide a way to buy
shares of foreign- based companies in the United States rather than in overseas
markets. ADRs are also traded in U.S. dollars, eliminating the need for foreign
exchange transactions. The foreign securities underlying European Depositary
Receipts (EDRs), Global Depositary Receipts (GDRs), and International Depositary
Receipts (IDRs), are traded globally or outside the United States. Depositary
receipts involve many of the same risks of investing directly in foreign
securities, including currency risks and risks of foreign investing.

FOREIGN EXCHANGE CONTRACTS

In order to convert U.S. dollars into the currency needed to buy a foreign
security, or to convert foreign currency received from the sale of a foreign
security into U.S. dollars, the Fund may enter into spot currency trades. In a
spot trade, the Fund agrees to exchange one currency for another at the current
exchange rate. The Fund may also enter into derivative contracts in which a
foreign currency is an underlying asset. The exchange rate for currency
derivative contracts may be higher or lower than the spot exchange rate. Use of
these derivative contracts may increase or decrease the Fund's exposure to
currency risks.

EQUITY SECURITIES

Equity securities represent a share of an issuer's earnings and assets, after
the issuer pays its liabilities. The Fund cannot predict the income it will
receive from equity securities because issuers generally have discretion as to
the payment of any dividends or distributions. However, equity securities offer
greater potential for appreciation than many other types of securities, because
their value increases directly with the value of the issuer's business. The
following describes the principal types of equity securities in which the Fund
invests.

Common Stocks

Common stocks are the most prevalent type of equity security. Common stocks
receive the issuer's earnings after the issuer pays its creditors and any
preferred stockholders. As a result, changes in an issuer's earnings directly
influence the value of its common stock.

Preferred Stocks

Preferred stocks have the right to receive specified dividends or distributions
before the issuer makes payments on its common stock. Some preferred stocks also
participate in dividends and distributions paid on common stock. Preferred
stocks may also permit the issuer to redeem the stock.

Interests in Other Limited Liability Companies

Entities such as limited partnerships, limited liability companies, business
trusts and companies organized outside the United States may issue securities
comparable to common or preferred stock.

What are the Specific Risks of Investing in the Fund?

CURRENCY RISKS

Exchange rates for currencies fluctuate daily. The combination of currency risk
and market risks tends to make securities traded in foreign markets more
volatile than securities traded exclusively in the U.S.

STOCK MARKET RISKS

The value of equity securities in the Fund's portfolio will rise and fall. These
fluctuations could be a sustained trend or a drastic movement. The Fund's
portfolio will reflect changes in prices of individual portfolio stocks or
general changes in stock valuations. Consequently, the Fund's share price may
decline and you could lose money.

The adviser attempts to manage market risk by limiting the amount the Fund
invests in each company. However, diversification will not protect the Fund
against widespread or prolonged declines in the stock market.

RISKS OF FOREIGN INVESTING

Foreign securities pose additional risks because foreign economic or political
conditions may be less favorable that those of the United States. Foreign
financial markets may also have fewer investor protections. Securities in
foreign markets may also be subject to taxation policies that reduce returns for
U.S. investors.

Foreign companies may not provide information (including financial statements)
as frequently or to as great an extent as companies in the United States.
Foreign companies may also receive less coverage than United States companies by
market analysts and the financial press. In addition, foreign countries may lack
uniform accounting, auditing and financial reporting standards or regulatory
requirements comparable to those applicable to U.S. companies. These factors may
prevent the Fund and its adviser from obtaining information concerning foreign
companies that is as frequent, extensive and reliable as the information
available concerning companies in the United States.

Foreign countries may have restrictions on foreign ownership of securities or
may impose exchange controls, capital flow restrictions or repatriation
restrictions which could adversely affect the liquidity of the Fund's
investments.

EMERGING MARKET RISKS

Securities issued or traded in emerging markets generally entail greater risks
than securities issued or traded in developed markets. For example, their prices
can be significantly more volatile than prices in developed countries. Emerging
market economies may also experience more severe downturns (with corresponding
currency devaluations) than developed economies.

Emerging market countries may have relatively unstable governments and may
present the risk of nationalization of businesses, expropriation, confiscatory
taxation or, in certain instances, reversion to closed market, centrally planned
economies.

The Adviser is seeking information regarding the Year 2000 readiness of
countries, issuers, and Fund service providers located in emerging markets. The
Year 2000 problem is the potential for computer errors or failures because
certain computer systems may be unable to interpret dates after December 31,
1999, or experience other date-related problems. However, this information may
be incomplete, inaccurate or difficult to obtain. As a result, the Adviser might
not be able to assess accurately the potential effects of the Year 2000 problem
on these countries and companies, and these problems could result in material
losses to the Fund. REGIONAL RISKS

Certain risks associated with international investments and investing in
smaller, developing capital markets are heightened for investments in Asian and
Pacific Rim countries. For example, some of the currencies of Asian and Pacific
Rim countries have experienced steady devaluations relative to the U.S. dollar,
and major adjustments have been made in certain of these currencies
periodically.

Although there is a trend toward less government involvement in commerce,
governments of many Asian and Pacific Rim countries have exercised and continue
to exercise substantial influence over many aspects of the private sector. In
certain cases, the government still owns or controls many companies, including
some of the largest in the country. Accordingly, government actions in the
future could have a significant effect on economic conditions in Asian and
Pacific Rim countries, which could affect private sector companies and the Fund,
as well as the value of securities in the Fund's portfolio.

LIQUIDITY RISKS

Trading opportunities are more limited for equity securities that are not widely
held. This may make it more difficult to sell or buy a security at a favorable
price or time. Consequently, the Fund may have to accept a lower price to sell a
security, sell other securities to raise cash or give up an investment
opportunity, any of which could have a negative effect on the Fund's
performance. Infrequent trading of securities may also lead to an increase in
their price volatility.

What do Shares Cost?

You can purchase, redeem, or exchange Shares any day the New York Stock Exchange
(NYSE) is open. When the Fund receives your transaction request in proper form,
it is processed at the next calculated net asset value (NAV), plus any
applicable front-end sales charge (public offering price).

NAV is determined at the end of regular trading (normally 4:00 p.m. Eastern
time) each day the NYSE is open. The Fund's current NAV and public offering
price may be found in the mutual funds section in certain local newspapers under
"Federated" and the appropriate class designation listing.

The following table summarizes the minimum required investment amount and the
maximum sales charge, if any, that you will pay on an investment in the Fund.
Keep in mind that investment professionals may charge you fees for their
services in connection with your Share transactions. <TABLE> <CAPTION>

Minimum Maximum Sales Charge
Initial/ Contingent
Subsequent Front-End Deferred
Investment Sales Sales

Shares Offered Amounts/1/ Charge/2/ Charge/3/
<S> <C> <C> <C>
Class A $1,500/$100 5.50% 0.00%
Class B $1,500/$100 None 5.50%
Class C $1,500/$100 None 1.00%

</TABLE>

1 The minimum initial and subsequent investment amounts for retirement plans
are $250 and $100, respectively. The minimum subsequent investment amounts
for Systematic Investment Programs is $50. Investment professionals may
impose higher or lower minimum investment requirements on their customers
than those imposed by the Fund.

Orders for $250,000 or more will be invested in Class A Shares instead of Class
B Shares to maximize your return and minimize the sales charges and marketing
fees. Accounts held in the name of an investment professional may be treated
differently. Class B Shares will automatically convert into Class A Shares
after eight full years from the purchase date. This conversion is a non-taxable
event.

2 Front-End Sales Charge is expressed as a percentage of public offering price.
See "Sales Charge When You Purchase" below.

3 See "Sales Charge When You Redeem" below.

SALES CHARGE WHEN YOU PURCHASE

Class A Shares

Sales Charge

as a Percentage Sales Charge
of Public as a Percentage

Purchase Amount Offering Price of NAV
<S> <C> <C>
Less than $50,000 5.50% 5.82%

$50,000 but less than

$100,000 4.50% 4.71%

$100,000 but less than

$250,000 3.75% 3.90%

$250,000 but less than

$500,000 2.50% 2.56%

$500,000 but less than $1

million 2.00% 2.04%

$1 million or greater/1/ 0.00% 0.00%
</TABLE>

1 A contingent deferred sales charge of 0.75% of the redemption amount applies
to Class A Shares redeemed up to 24 months after purchase under certain
investment programs where an investment professional received an advance
payment on the transaction.

The sales charge at purchase may be reduced or eliminated by:
. purchasing Shares in greater quantities to reduce the applicable sales

charge;

. combining concurrent purchases of Shares:

- by you, your spouse, and your children under age 21; or - of the same
share class of two or more Federated Funds (other

than money market funds);

. accumulating purchases (in calculating the sales charge on an additional
purchase, include the current value of previous Share purchases still invested
in the Fund); or . signing a letter of intent to purchase a specific dollar
amount of Shares within 13 months (call your investment professional or the Fund
for more information). The sales charge will be eliminated when you purchase
Shares: . within 120 days of redeeming Shares of an equal or lesser amount; . by
exchanging shares from the same share class of another Federated Fund (other
than a money market fund); . through wrap accounts or other investment programs
where you pay the investment professional directly for services; . through
investment professionals that receive no portion of the sales charge; . as a
Federated Life Member (Class A Shares only) and their immediate family members;
or . as a Director or employee of the Fund, the Adviser, the Distributor and
their affiliates, and the immediate family members of these individuals.

If your investment qualifies for a reduction or elimination of the sales charge,
you or your investment professional should notify the Fund's Distributor,
Federated Securities Corp., at the time of purchase. If the Distributor is not
notified, you will receive the reduced sales charge only on additional
purchases, and not retroactively on previous purchases.

SALES CHARGE WHEN YOU REDEEM

Your redemption proceeds may be reduced by a sales charge, commonly referred to
as a contingent deferred sales charge (CDSC).

Class A Shares

<S> <C>
A CDSC of 0.75% of the redemption amount applies to Class A Shares

redeemed up to 24 months after purchase under certain investment programs where
an investment professional received an advance payment on the transaction.

Class B Shares

Shares Held Up To: CDSC
1 Year 5.50%
2 Years 4.75%
3 Years 4.00%
4 Years 3.00%
5 Years 2.00%
6 Years 1.00%
7 Years or More 0.00%

Class C Shares

You will pay a 1% CDSC if you redeem Shares within one year of the purchase
date.

</TABLE>

You will not be charged a CDSC when redeeming Shares:
. purchased with reinvested dividends or capital gains;

. purchased within 120 days of redeeming Shares of an equal or lesser amount;
. that you exchanged into the same share class of another Federated Fund

where the shares were held for the applicable CDSC holding period
(other than a money market fund);

. purchased through investment professionals who did not receive advanced
sales payments; or

. if after you purchase Shares, you become disabled as defined by the IRS.
In addition, you will not be charged a CDSC:
. if the Fund redeems your Shares and closes your account for not meeting the

minimum balance requirement;
. if your redemption is a required retirement

plan distribution;

. upon the death of the last surviving shareholder of the account.

If your redemption qualifies, you or your investment professional should notify
the Distributor at the time of redemption to eliminate the CDSC. If the
Distributor is not notified, the CDSC will apply.

To keep the sales charge as low as possible, the Fund redeems your Shares in
this order:

. Shares that are not subject to a CDSC; and

. Shares held the longest (to determine the number of years your Shares have
been held, include the time you held shares of other Federated Funds that have
been exchanged for Shares of this Fund). . The CDSC is then calculated using the
share price at the time of purchase or redemption, whichever is lower.

How is the Fund Sold?

The Fund offers three share classes: Class A Shares, Class B Shares, and Class C
Shares, each representing interests in a single portfolio of securities.

The Fund's Distributor markets the Shares described in this prospectus to
institutions or individuals, directly or through investment professionals. When
the Distributor receives sales charges and marketing fees, it may pay some or
all of them to investment professionals. The Distributor and its affiliates may
pay out of their assets other amounts (including items of material value) to
investment professionals for marketing and servicing Shares. The Distributor is
a subsidiary of Federated Investors, Inc. (Federated).

RULE 12B-1 PLAN

The Fund has adopted a Rule 12b-1 Plan, which allows it to pay marketing fees to
the Distributor and investment professionals for the sale, distribution and
customer servicing of the Fund's Shares. Because these Shares pay marketing fees
on an ongoing basis, your investment cost may be higher over time than other
shares with different sales charges and marketing fees.

How to Purchase Shares

You may purchase Shares through an investment professional, directly from the
Fund, or through an exchange from another Federated Fund. The Fund reserves the
right to reject any request to purchase or exchange Shares.

Where the Fund offers more than one share class and you do not specify the
class choice on your New Account Form or form of payment (e.g., Federal Reserve
wire or check), you automatically will receive Class A Shares.

THROUGH AN INVESTMENT PROFESSIONAL

. Establish an account with the investment professional; and . Submit your
purchase order to the investment professional before the end of regular trading
on the NYSE (normally 4:00 p.m. Eastern time). You will receive the next
calculated NAV if the investment professional forwards the order to the Fund on
the same day and the Fund receives payment within three business days. You will
become the owner of Shares and receive dividends when the Fund receives your
payment.

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

You will become the owner of Shares and your Shares will be priced at the next
calculated NAV after the Fund receives your wire or your check. If your check
does not clear, your purchase will be canceled and you could be liable for any
losses or fees the Fund or its transfer agent incurs.

An institution may establish an account and place an order by calling the Fund
and the Shares will be priced at the next calculated NAV after the Fund receives
the order.

By Wire Send your wire to:

State Street Bank and Trust Company
Boston, MA
Dollar Amount of Wire

ABA Number 011000028
Attention: EDGEWIRE

Wire Order Number, Dealer Number, or Group Number
Nominee/Institution Name
Fund Name and Number and Account Number

You cannot purchase Shares by wire on holidays when wire transfers are
restricted.

By Check

Make your check payable to The Federated Funds, note your account number on the
check, and mail it to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

If you send your check by a private courier or overnight delivery service that
requires a street address, mail it to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317

Payment should be made in U.S. dollars and drawn on a U.S. bank. The Fund will
not accept third-party checks (checks originally payable to someone other than
you or The Federated Funds).

THROUGH AN EXCHANGE

You may purchase Shares through an exchange from the same Share class of another
Federated Fund. You must meet the minimum initial investment requirement for
purchasing Shares and both accounts must have identical registrations.

BY SYSTEMATIC INVESTMENT PROGRAM

Once you have opened an account, you may automatically purchase additional
Shares on a regular basis by completing the Systematic Investment Program
section of the New Account Form or by contacting the Fund or your investment
professional.

BY AUTOMATED CLEARINGHOUSE (ACH)

Once you have opened an account, you may purchase additional Shares through a
depository institution that is an ACH member. This purchase option can be
established by completing the appropriate sections of the New Account Form.

RETIREMENT INVESTMENTS

You may purchase Shares as retirement investments (such as qualified plans and
IRAs or transfer or rollover of assets). Call your investment professional or
the Fund for information on retirement investments. We suggest that you discuss
retirement investments with your tax adviser. You may be subject to an annual
IRA account fee.

How to Redeem and Exchange Shares

You should redeem or exchange Shares:

. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

Submit your redemption or exchange request to your investment professional by
the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time). The
redemption amount you will receive is based upon the next calculated NAV after
the Fund receives the order from your investment professional.

DIRECTLY FROM THE FUND

By Telephone

You may redeem or exchange Shares by calling the Fund once you have completed
the appropriate authorization form for telephone transactions. If you call
before the end of regular trading on the NYSE (normally 4:00 p.m. Eastern time)
you will receive a redemption amount based on that day's NAV.

By Mail

You may redeem or exchange Shares by mailing a written request to the Fund. You
will receive a redemption amount based on the next calculated NAV after

the Fund receives your written request in proper form.
Send requests by mail to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

Send requests by private courier or overnight delivery service to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317 All requests must include:

. Fund Name and Share Class, account number and account registration;
. amount to be redeemed or exchanged;
. signatures of all shareholders exactly as
registered; and
. if exchanging, the Fund Name and Share Class, account number and account
registration into which you are exchanging.
Call your investment professional or the Fund if you need special instructions.

Signature Guarantees Signatures must be guaranteed if:

. your redemption will be sent to an address other than the address of
record;
. your redemption will be sent to an address of record that was changed
within the last 30 days;
. a redemption is payable to someone other than the shareholder(s) of record;
or
. if exchanging (transferring) into another fund with a different shareholder
registration.

A signature guarantee is designed to protect your account from fraud. Obtain a
signature guarantee from a bank or trust company, savings association, credit
union or broker, dealer, or securities exchange member. A notary public cannot
provide a signature guarantee.

PAYMENT METHODS FOR REDEMPTIONS

Your redemption proceeds will be mailed by check to your address of record. The
following payment options are available if you complete the appropriate section
of the New Account Form or an Account Service Options Form. These payment
options require a signature guarantee if they were not established when the
account was opened:

. an electronic transfer to your account at a financial institution that is
an ACH member; or
. wire payment to your account at a domestic commercial bank that is a
Federal Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:

. to allow your purchase to clear;
. during periods of market volatility; or

. when a shareholder's trade activity or amount adversely impacts the Fund's
ability to manage its assets. You will not accrue interest or dividends on
uncashed checks from the Fund if those checks are undeliverable and returned to
the Fund.

REDEMPTIONS FROM RETIREMENT ACCOUNTS

In the absence of your specific instructions, 10% of the value of your
redemption from a retirement account in the Fund may be withheld for taxes. This
withholding only applies to certain types of retirement accounts.

EXCHANGE PRIVILEGES

You may exchange Shares of the Fund into Shares of the same class of another
Federated Fund. To do this, you must:
. ensure that the account registrations are identical;
. meet any minimum initial investment requirements; and
. receive a prospectus for the fund into which you wish to exchange.
An exchange is treated as a redemption and a subsequent purchase, and is a
taxable transaction.

The Fund may modify or terminate the exchange privilege at any time. The
Fund's management or investment adviser may determine from the amount, frequency
and pattern of exchanges that a shareholder is engaged in excessive trading that
is detrimental to the Fund and other shareholders. If this occurs, the Fund may
terminate the availability of exchanges to that shareholder and may bar that
shareholder from purchasing other Federated Funds.

SYSTEMATIC WITHDRAWAL/
EXCHANGE PROGRAM

You may automatically redeem or exchange Shares in a minimum amount of $100 on a
regular basis. Complete the appropriate section of the New Account Form or an
Account Service Options Form or contact your investment professional or the
Fund. Your account value must meet the minimum initial investment amount at the
time the program is established. This program may reduce, and eventually
deplete, your account. Payments should not be considered yield or income.
Generally, it is not advisable to continue to purchase Shares subject to a sales
charge while redeeming Shares using this program.

Systematic Withdrawal Program (SWP) on Class B Shares
You will not be charged a CDSC on SWP redemptions if:
. you redeem 12% or less of your account value in a single year;
. you reinvest all dividends and capital gains distributions; and

. your account has at least a $10,000 balance when you establish the SWP.
(You cannot aggregate multiple Class B Share accounts to meet this minimum
balance).

You will be subject to a CDSC on redemption amounts that exceed the 12% annual
limit. In measuring the redemption percentage, your account is valued when you
establish the SWP and then annually at calendar year-end. You can redeem
monthly, quarterly, or semi-annually.

For SWP accounts established prior to April 1, 1999, your account must be at
least one year old in order to be eligible for the waiver of the CDSC.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

The Fund no longer issues share certificates. If you are redeeming or exchanging
Shares represented by certificates previously issued by the Fund, you must
return the certificates with your written redemption or exchange request. For
your protection, send your certificates by registered or certified mail, but do
not endorse them.

Account and Share Information

CONFIRMATIONS AND ACCOUNT STATEMENTS

You will receive confirmation of purchases, redemptions and exchanges (except
for systematic transactions). In addition, you will receive periodic statements
reporting all account activity, including systematic transactions, dividends and
capital gains paid.

DIVIDENDS AND CAPITAL GAINS

The Fund declares and pays any dividends annually to shareholders. Dividends are
paid to all shareholders invested in the Fund on the record date. The record
date is the date on which a shareholder must officially own Shares in order to
earn a dividend.

In addition, the Fund pays any capital gains at least annually. Your dividends
and capital gains distributions will be automatically reinvested in additional
Shares without a sales charge, unless you elect cash payments.

If you purchase Shares just before a Fund declares a dividend or capital gain
distribution, you will pay the full price for the Shares and then receive a
portion of the price back in the form of a taxable distribution, whether or not
you reinvest the distribution in Shares. Therefore, you should consider the tax
implications of purchasing Shares shortly before the Fund declares a dividend or
capital gain. Contact your investment professional or the Fund for information
concerning when dividends and capital gains will be paid.

ACCOUNTS WITH LOW BALANCES

Due to the high cost of maintaining accounts with low balances, non-retirement
accounts may be closed if redemptions or exchanges cause the account balance to
fall below the minimum initial investment amount. Before an account is closed,
you will be notified and allowed 30 days to purchase additional Shares to meet
the minimum.

TAX INFORMATION

The Fund sends an annual statement of your account activity to assist you in
completing your federal, state and local tax returns. Fund distributions of
dividends and capital gains are taxable to you whether paid in cash or
reinvested in the Fund. Dividends are taxable as ordinary income; capital gains
are taxable at different rates depending upon the length of time the Fund holds
its assets.

Fund distributions are expected to be primarily capital gains. Redemptions and
exchanges are taxable sales. Please consult your tax adviser regarding your
federal, state, and local tax liability.

Who Manages the Fund?

The Board of Directors governs the Fund. The Board selects and oversees the
Adviser, Federated Global Investment Management Corp. (formerly, Federated
Global Research Corp.). The Adviser manages the Fund's assets, including buying
and selling portfolio securities. The Adviser's address is 175 Water Street, New

York, NY 10038-4965.

THE FUND'S PORTFOLIO MANAGERS ARE:

Alexandre de Bethmann

Alexandre de Bethmann has been the Fund's portfolio manager since its inception.
Mr. de Bethmann joined Federated in 1995 as a Senior Portfolio Manager and a
Vice President of the Fund's Adviser.

Mr. de Bethmann served as Assistant Vice President/ Portfolio Manager for
Japanese and Korean equities at the College Retirement Equities Fund from 1994
to 1995. Mr. de Bethmann received his M.B.A. in Finance from Duke University.

Drew J. Collins

Drew J. Collins has been a member of the Fund's portfolio management team since
its inception. He is Vice President of the Corporation. Mr. Collins joined
Federated in 1995 as a Senior Portfolio Manager and a Senior Vice President of
the Fund's Adviser. Mr. Collins served as Vice President/Portfolio Manager of
international equity portfolios at Arnhold and Bleichroeder, Inc. from 1994 to
1995. He served as an Assistant Vice President/Portfolio Manager for
international equities at the College Retirement Equities Fund from 1986 to
1994. Mr. Collins is a Chartered Financial Analyst and received his M.B.A. in
finance from the Wharton School of The University of Pennsylvania.

The Adviser and other subsidiaries of Federated advise approximately 175
mutual funds and separate accounts, which total more than $111 billion in assets
as of December 31, 1998. Federated was established in 1955 and is one of the
largest mutual fund investment managers in the United States with approximately
1,900 employees. More than 4,000 investment professionals make Federated Funds
available to their customers.

ADVISORY FEES

The Adviser receives an annual investment advisory fee of 1.10% of the Fund's
average daily net assets. The Adviser may voluntarily waive a portion of its fee
or reimburse the Fund for certain operating expenses.

YEAR 2000 READINESS

While it is impossible to determine in advance all of the risks to the Fund,
the Fund could experience interruptions in basic financial and operational
functions. Fund shareholders could experience errors or disruptions in Fund
Share transactions or Fund communications.

The Fund's service providers are making changes to their computer systems to
fix any Year 2000 problems. In addition, they are working to gather information
from third-party providers to determine their Year 2000 readiness.

Year 2000 problems would also increase the risks of the Fund's investments. To
assess the potential effect of the Year 2000 problem, the Adviser is reviewing
information regarding the Year 2000 readiness of issuers of securities the Fund
may purchase.

However, this may be difficult with certain issuers. For example, funds
dealing with foreign service providers or investing in foreign securities will
have difficulty determining the Year 2000 readiness of those entities. This is
especially true of entities or issuers in emerging markets.

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

The Financial Highlights will help you understand the Fund's financial
performance for its past five fiscal years, or since inception, if the life of
the Fund is shorter. Some of the information is presented on a per share basis.
Total returns represent the rate an investor would have earned (or lost) on an
investment in the Fund, assuming reinvestment of all dividends and capital
gains.

This information has been audited by Ernst & Young LLP, whose report, along
with the Fund's audited financial statements, is included in the Annual Report.

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C> <C>
Year Ended November 30 1998 1997 1996/1/
Net Asset Value, Beginning of Period $ 7.81 $ 10.25 $10.00
Income From Investment Operations:

Net operating loss (0.05) (0.03) 0.00
Net realized and unrealized gain/(loss) on investments and
foreign currency transactions (1.36) (2.41) 0.25

TOTAL FROM INVESTMENT OPERATIONS (1.41) (2.44) 0.25
Net Asset Value, End of Period $ 6.40 $ 7.81 $10.25
Total Return/2/ (18.05%) (23.80%) 2.50%

Ratios to Average Net Assets:

Expenses 1.85% 1.85% 1.85%/4/
Net operating loss (0.35%) (0.53%) --
Expense waiver/reimbursement/3/ 3.78% 4.77% 7.02%/4/
Supplemental Data:

Net assets, end of period (000 omitted) $ 6,345 $ 7,297 $4,593
Portfolio turnover 347% 193% 99%
</TABLE>

1 Reflects operations for the period from February 28, 1996 (date of initial
public investment) to November 30, 1996.

2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

3 This voluntary expense decrease is reflected in both the expense and net
operating loss ratios shown above.

4 Computed on an annualized basis.

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C> <C>
Year Ended November 30 1998 1997 1996/1/
Net Asset Value, Beginning of Period $ 7.73 $ 10.19 $10.00
Income From Investment Operations:

Net operating loss (0.07) (0.08) (0.03)
Net realized and unrealized gain/(loss) on investments and
foreign currency transactions (1.37) (2.38) 0.22

TOTAL FROM INVESTMENT OPERATIONS (1.44) (2.46) 0.19
Net Asset Value, End of Period $ 6.29 $ 7.73 $10.19
Total Return/2/ (18.63%) (24.14%) 1.90%

Ratios to Average Net Assets:

Expenses 2.60% 2.60% 2.60%/4/
Net operating loss (1.10%) (1.25%) (0.86%)/4/
Expense waiver/reimbursement/3/ 3.78% 4.77% 7.02%/4/
Supplemental Data:

Net assets, end of period (000 omitted) $ 4,154 $ 3,606 $2,273
Portfolio turnover 347% 193% 99%
</TABLE>

1 Reflects operations for the period from February 28, 1996 (date of initial
public investment) to November 30, 1996.

2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

3 This voluntary expense decrease is reflected in both the expense and net
operating loss ratios shown above.

4 Computed on an annualized basis.

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C> <C>
Year Ended November 30 1998 1997 1996/1/
Net Asset Value, Beginning of Period $ 7.74 $ 10.20 $10.00
Income From Investment Operations:

Net operating loss (0.08) (0.12) (0.05)
Net realized and unrealized gain/(loss) on investments and
foreign currency transactions (1.35) (2.34) 0.25

TOTAL FROM INVESTMENT OPERATIONS (1.43) (2.46) 0.20
Net Asset Value, End of Period $ 6.31 $ 7.74 $10.20
Total Return/2/ (18.48%) (24.12%) 2.00%

Ratios to Average Net Assets:

Expenses 2.60% 2.60% 2.60%/4/
Net operating loss (1.10%) (1.22%) (0.90%)/4/
Expense waiver/reimbursement/3/ 3.78% 4.77% 7.02%/4/
Supplemental Data:

Net assets, end of period (000 omitted) $ 608 $ 511 $ 397
Portfolio turnover 347% 193% 99%
</TABLE>

1 Reflects operations for the period from February 28, 1996 (date of initial
public investment) to November 30, 1996.

2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

3 This voluntary expense decrease is reflected in both the expense and net
operating loss ratios shown above.

4 Computed on an annualized basis.

[logo of Federated]

Federated Asia Pacific Growth Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES

CLASS B SHARES

CLASS C SHARES

MARCH 31, 1999

REVISED JULY 31, 1999

A Statement of Additional Information (SAI) dated March 31, 1999, is
incorporated by reference into this prospectus. Additional information about the
Fund's investments is contained in the Fund's annual and semi-annual reports to
shareholders as they become available. The annual report discusses market
conditions and investment strategies that significantly affected the Fund's
performance during its last fiscal year. To obtain the SAI, the annual report,
semi-annual report and other information without charge, call your investment
professional or the Fund at 1-800-341-7400.

You can obtain information about the Fund (including the SAI) by visiting or
writing the Public Reference Room of the Securities and Exchange Commission in
Washington, DC 20549-6009 or from the Commission's Internet site at
http://www.sec.gov. You can call 1-800-SEC-0330 for information on the Public
Reference Room's operations and copying charges.

[logo of Federated]

Federated Asia Pacific Growth Fund

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

1-800-341-7400

www.federatedinvestors.com

Federated Securities Corp., Distributor

Investment Company Act File No. 811-7141
Cusip 981487507

Cusip 981487606
Cusip 981487705

G01470-02 (7/99)

Federated is a registered mark
of Federated Investors, Inc.
1999 (C)Federated Investors, Inc.

PROSPECTUS

Federated Latin American Growth Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

A mutual fund seeking high-term growth of capital by investing primarily in
equity securities of Latin American companies.

<TABLE>
<CAPTION>
CONTENTS

<S> <C>
Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 5
What are the Specific Risks of Investing in the Fund? 6
What do Shares Cost? 8
How is the Fund Sold? 11
How to Purchase Shares 12
How to Redeem and Exchange Shares 13
Account and Share Information 16
Who Manages the Fund? 17
Financial Information 19
</TABLE>
MARCH 31, 1999

REVISED JULY 31, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund pursues its investment objective by investing at least 65% of its
assets in equity securities of Latin American companies. Latin America is
defined as Mexico, Central America, South America, and the Spanish-speaking
islands of the Caribbean. The adviser intends to focus its investments in the
most developed capital markets of Latin America.

In selecting investments for the portfolio the adviser looks for companies
which are positioned for rapid growth in revenues or earnings and assets.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

. the foreign markets in which the Fund invests may be subject to economic or
political conditions which are less favorable than those of the United States
and may lack financial reporting standards or regulatory requirements comparable
to those applicable to U.S. companies;

. the Fund may invest a significant portion of its assets in a particular
geographic region, which makes it subject to greater currency risk and more
susceptible to adverse impact from actions of foreign governments;

. prices of emerging market securities in which the Fund invests can be
significantly more volatile than prices of securities in developed countries;
and . the foreign securities in which the Fund invests may trade infrequently
and may be subject to greater fluctuation in price than other securities.

Risk/Return Bar Chart and Table

The graphic presentation displayed here consists of a bar chart representing the
annual total returns of Class A Shares of Federated Latin America Growth Fund as
of the calendar year-end for each of two years.

The `y' axis reflects the "% Total Return" beginning with "(50%)" and increasing
in increments of 10% up to 30%.

The bar chart shows the variability of the Fund's Class A Shares total returns
on a calendar year-end basis.

The Fund's Class A Shares total return from January 1, 1999 to June 30, 1999 was
27.01%. This total return reflects six months of performance.

Within the period shown in the Chart, the Fund's Class A Shares highest
quarterly return was 21.31% (quarter ended June 30, 1997). Its lowest quarterly
return was (30.13%) (quarter ended September 30, 1998).

Average Annual Total Return

Start of

Calendar Period 1 Year Performance1

<S> <C> <C>
Class A (44.15%) (7.08%)
Class B (44.67%) (7.31%)
Class C (41.98%) (5.98%)
MSCI-LAF (35.11%) 0.17%
</TABLE>

1 The Fund's Class A, Class B and Class C Shares start of performance date was
February 28, 1996. The table shows the Fund's Class A, Class B and Class C
Shares average annual total returns (reduced to reflect applicable sales
charges) compared to the Morgan Stanley Capital International Latin American-
Free Index (MSCI-LAF) for the calendar periods ending December 31, 1998. The
MSCI-LAF is a market value-weighted index of the performance of securities
listed on the stock exchanges of seven countries in the Latin-American
region.

What are the Fund's Fees and Expenses?

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund's Class A, B, or C Shares.

Shareholder Fees Class A Class B Class C Fees Paid Directly From Your Investment
<S> <C> <C> <C> Maximum Sales Charge (Load) Imposed on Purchases (as a
percentage of offering price) 5.50% None None Maximum Deferred Sales Charge
(Load) (as a percentage of original purchase price or redemption 0.00% 5.50%
1.00%

proceeds, as applicable)

Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) None None None
(as a percentage of offering price)

Redemption Fee (as a percentage of amount redeemed, if applicable) None None None
Exchange Fee None None None

Annual Fund Operating Expenses (Before Reimbursements and Waivers)1
Expenses That are Deducted From Fund Assets (as a percentage of average net assets)

Management Fee2 1.25% 1.25% 1.25%
Distribution (12b-1) Fee3 0.25% 0.75% 0.75%
Shareholder Services Fee 0.25% 0.25% 0.25%
Other Expenses4 2.70% 2.70% 2.70%
Total Annual Fund Operating Expenses 4.45% 4.95%5 4.95%
1 Although not contractually obligated to do so, the adviser waived and reimbursed and the distributor waived certain amounts. These

are shown below along with the net expenses the Fund actually paid for the fiscal year ended November 30, 1998.
Reimbursements and Waivers of Fund Expenses 2.45% 2.20% 2.20%
Total Actual Annual Fund Operating Expenses (after reimbursements and waivers) 2.00% 2.75% 2.75%
2 The adviser voluntarily waived a portion of the management fee. The adviser
can terminate this voluntary waiver at any time. The management fee paid by
the Fund (after the voluntary waiver) was 0.00% for the year ended November
30, 1998.

3 Class A Shares did not pay or accrue the distribution (12b-1) fee during the
fiscal year ended November 30, 1998. Class A Shares have no present intention
of paying or accruing the distribution (12b-1) fee during the year ending
November 30, 1999.

4 The adviser voluntarily reimbursed certain operating expenses of the Fund. The
adviser can terminate this voluntary reimbursement at any time. Total other
expenses paid by the Fund (after the voluntary reimbursement) were 1.75% for
the year ended November 30, 1998.

5 Class B Shares convert to Class A Shares (which pay lower ongoing expenses)
approximately eight years after purchase. </TABLE>

EXAMPLE

The following Example is intended to help you compare the cost of investing in
the Fund's Class A Shares, Class B Shares and Class C Shares with the cost of
investing in other mutual funds.

redemption $ 972 $1,822 $2,682 $4,873
Expenses assuming
no redemption $ 972 $1,822 $2,682 $4,873
Class B
Expenses assuming

redemption $1,045 $1,886 $2,678 $4,866
Expenses assuming
no redemption $ 495 $1,486 $2,478 $4,866
Class C
Expenses assuming

redemption $ 595 $1,486 $2,478 $4,962
Expenses assuming
no redemption $ 495 $1,486 $2,478 $4,962
</TABLE>

What are the Fund's Investment Strategies?

In selecting countries in which to invest, the adviser reviews the country's
economic outlook, including its interest and inflation rates, and the political
and foreign exchange risk of investing in a particular country. The adviser
generally follows the country composition of the Morgan Stanley Latin America
Free Index in selecting the weightings of countries contained in the portfolio.
The adviser then analyzes companies located in each particular country.

PORTFOLIO TURNOVER

TEMPORARY DEFENSIVE INVESTMENTS

What are the Principal Securities in Which the Fund Invests?

LATIN AMERICAN SECURITIES

The Fund considers an issuer to be a Latin American company if:
. it is organized under the laws of, or has a principal office located in, a
Latin American country;
. the principal trading market for its securities is in a Latin American; or

. it (or its subsidiaries) derived in its most current fiscal year at least 50%
of its total assets, capitalization, gross revenue or profit from goods
produced, services performed, or sales made in a Latin American country.

Latin American securities are often denominated in foreign currencies. Along
with the risks normally associated with domestic equity securities, foreign
securities are subject to currency risks and risks of foreign investing.

DEPOSITARY RECEIPTS

FOREIGN EXCHANGE CONTRACTS

EQUITY SECURITIES

Common Stocks

Preferred Stocks

What are the Specific Risks of Investing in the Fund?

STOCK MARKET RISKS

CURRENCY RISKS

RISKS OF FOREIGN INVESTING

REGIONAL RISKS

Certain risks associated with international investments and investing in
smaller, developing capital markets are heightened for investments in Latin
America countries. For example, some of the currencies of Latin American
countries have experienced steady devaluations relative to the U.S. dollar, and
major adjustments have been made in certain of these currencies periodically.

Although there is a trend toward less government involvement in commerce,
governments of many Latin American countries have exercised and continue to
exercise substantial influence over many aspects of the private sector.
Accordingly, government actions in the future could have a significant effect on
economic conditions in Latin American countries, which could affect private
sector companies and the Fund, as well as the value of securities in the Fund's
portfolio.

The economies of individual Latin American countries may differ favorably or
unfavorably from the U.S. economy in such respects as the rate of growth of
gross domestic product and the rate of inflation. Although a number of Latin
American countries are currently experiencing lower rates of inflation and
higher rates of real growth in gross domestic product than they have in the
past, other Latin American countries continue to experience significant
problems, including high inflation and high interest rates.

EMERGING MARKET RISKS

LIQUIDITY RISKS

What do Shares Cost?

The public offering price is the net asset value (NAV) plus any applicable
sales charge. NAV is determined at the end of regular trading (normally 4:00
p.m. Eastern time) each day the NYSE is open. The Fund's current NAV and public
offering price may be found in the mutual funds section in certain local
newspapers under "Federated" and the appropriate class designation listing.

Maximum Sales Charge

Minimum
Initial/

Subsequent Contingent
Investment Front-End Deferred

Shares Offered Amounts1 Sales Charge2 Sales Charge3
<S> <C> <C> <C>
Class A $1,500/$100 5.50% 0.00%
Class B $1,500/$100 None 5.50%
Class C $1,500/$100 None 1.00%

</TABLE>

Orders for $250,000 or more should be invested in Class A Shares instead of
Class B Shares to maximize your return and minimize the sales charges and
marketing fees. Accounts held in the name of an investment professional may
be treated differently. Class B Shares will automatically convert into Class
A Shares after eight full years from the purchase date. This conversion is a
non-taxable event.

2 Front-End Sales Charge is expressed as a percentage of public offering price.
See "Sales Charge When You Purchase" below.

3 See "Sales Charge When You Redeem" below.

SALES CHARGE WHEN YOU PURCHASE

Class A Shares

Sales Charge

as a Percentage Sales Charge
of Public as a Percentage

Purchase Amount Offering Price of NAV
<S> <C> <C>
Less than $50,000 5.50% 5.82%
$50,000 but less than
$100,000 4.50% 4.71%

$100,000 but less than

$250,000 3.75% 3.90%

$250,000 but less than

$500,000 2.50% 2.56%

$500,000 but less than

$1 million 2.00% 2.04%

$1 million or greater1 0.00% 0.00%
</TABLE>

The sales charge at purchase may be reduced or eliminated by:
. purchasing Shares in greater quantities to reduce the applicable sales

charge;

. combining concurrent purchases of Shares:
- by you, your spouse, and your children under age 21; or
- of the same share class of two or more Federated Funds (other than money

market funds);

. accumulating purchases (in calculating the sales charge on an additional
purchase, include the current value of previous Share purchases still
invested in the Fund); or

. signing a letter of intent to purchase a specific dollar amount of Shares
within 13 months (call your investment professional or the Fund for more
information).

The sales charge will be eliminated when you purchase Shares:
. within 120 days of redeeming Shares of an equal or lesser amount;
. by exchanging shares from the same share class of another Federated Fund

(other than a money market fund);

. through wrap accounts or other investment programs where you pay the
investment professional directly for services;

. through investment professionals that receive no portion of the sales charge;
. as a Federated Life Member (Class A Shares only) and their immediate family

members; or

. as a Director or employee of the Fund, the Adviser, the Distributor and their
affiliates, and the immediate family members of these individuals.

SALES CHARGE WHEN YOU REDEEM

Your redemption proceeds may be reduced by a sales charge, commonly referred to
as a contingent deferred sales charge (CDSC).

Class A Shares

ACDSC of 0.75% of the redemption amount applies to Class A Shares redeemed up
to 24 months after purchase under certain investment programs where an
investment professional received an advance payment on the transaction.

Class B Shares

Shares Held Up To: CDSC
<S> <C>
1 Year 5.50%
2 Years 4.75%
3 Years 4.00%
4 Years 3.00%
5 Years 2.00%
6 Years 1.00%
7 Years or More 0.00%
</TABLE>

Class C Shares

You will pay a 1% CDSC if you redeem Shares within one year of the purchase
date.

You will not be charged a CDSC when redeeming Shares:
. purchased with reinvested dividends or capital gains;

. purchased within 120 days of redeeming Shares of an equal or lesser amount;
. that you exchanged into the same share class of another Federated Fund where

the original shares were held for the applicable CDSC holding period (other
than a money market fund);

. purchased through investment professionals who did not receive advanced sales
payments; or

. if after you purchase Shares, you become disabled as defined by the IRS.

In addition, you will not be charged a CDSC:

. if the Fund redeems your Shares and closes your account for not meeting the
minimum balance requirement;

. if your redemption is a required retirement plan distribution;
. upon the death of the last surviving shareholder of the account.

To keep the sales charge as low as possible, the Fund redeems your Shares in
this order:

. Shares that are not subject to a CDSC; and

. Shares held the longest (to determine the number of years your Shares have
been held, include the time you held shares of other Federated Funds that
have been exchanged for Shares of this Fund).

. The CDSC is then calculated using the share price at the time of purchase or
redemption, whichever is lower.

How is the Fund Sold?

The Fund offers three share classes: Class A Shares, Class B Shares, and Class C
Shares, each representing interests in a single portfolio of securities.

RULE 12B-1 PLAN

How to Purchase Shares

THROUGH AN INVESTMENT PROFESSIONAL

. Establish an account with the investment professional; and

. Submit your purchase order to the investment professional before the end of
regular trading on the NYSE (normally 4:00 p.m. Eastern time). You will
receive the next calculated NAV if the investment professional forwards the
order to the Fund on the same day and the Fund receives payment within three
business days. You will become the owner of Shares and receive dividends when
the Fund receives your payment.

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account

Form; and

. Send your payment to the Fund by Federal Reserve wire or check.

An institution may establish an account and place an order by calling the Fund
and the Shares will be priced at the next calculated NAV after the Fund receives
the order.

By Wire Send your wire to:

State Street Bank and Trust Company
Boston, MA
Dollar Amount of Wire

ABA Number 011000028
Attention: EDGEWIRE

Wire Order Number, Dealer Number, or Group Number
Nominee/Institution Name
Fund Name and Number and Account Number

You cannot purchase Shares by wire on holidays when wire transfers are
restricted.

By Check

Make your check payable to The Federated Funds, note your account number on the
check, and mail it to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

If you send your check by a private courier or overnight delivery service that
requires a street address, mail it to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317

Payment should be made in U.S. dollars and drawn on a U.S. bank. The Fund will
not accept third- party checks (checks originally payable to someone other than
you or The Federated Funds).

THROUGH AN EXCHANGE

BY SYSTEMATIC INVESTMENT PROGRAM

BY AUTOMATED CLEARINGHOUSE (ACH)

RETIREMENT INVESTMENTS

How to Redeem and Exchange Shares

You should redeem or exchange Shares:

. through an investment professional if you purchased Shares through an
investment professional; or

. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

DIRECTLY FROM THE FUND

By Telephone

By Mail

You may redeem or exchange Shares by mailing a written request to the Fund. You
will receive a redemption amount based on the next calculated NAV after

the Fund receives your written request in proper form.
Send requests by mail to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

Send requests by private courier or overnight delivery service to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317 All requests must include:

registration into which you are exchanging.

Call your investment professional or the Fund if you need special instructions.

Signature Guarantees Signatures must be guaranteed if:

. your redemption will be sent to an address other than the address of record;
. your redemption will be sent to an address of record that was changed within

the last 30 days;

. a redemption is payable to someone other than the shareholder(s) of record;

. if exchanging (transferring) into another fund with a different shareholder
registration.

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or

. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:

. to allow your purchase to clear;
. during periods of market volatility; or

. when a shareholder's trade activity or amount adversely impacts the Fund's
ability to manage its assets.

You will not accrue interest or dividends on uncashed checks from the Fund if
those checks are undeliverable and returned to the Fund.

REDEMPTIONS FROM RETIREMENT ACCOUNTS

EXCHANGE PRIVILEGES

SYSTEMATIC WITHDRAWAL/EXCHANGE PROGRAM

You may automatically redeem or exchange Shares in a minimum amount of $100 on a
regular basis. Complete the appropriate section of the New Account Form or an
Account Service Options Form or by contacting your investment professional or
the Fund. Your account value must meet the minimum initial investment amount at
the time the program is established. This program may reduce, and eventually
deplete, your account. Payments should not be considered yield or income.
Generally, it is not advisable to continue to purchase Shares subject to a sales
charge while redeeming Shares using this program.

Systematic Withdrawal Program (SWP) On Class B Shares
You will not be charged a CDSC on SWP redemptions if:
. you redeem 12% or less of your account value in a single year;
. you reinvest all dividends and capital gains distributions; and

. your account has at least a $10,000 balance when you establish the SWP. (You
cannot aggregate multiple Class B Share accounts to meet this minimum balance).

For SWP accounts established prior to April 1, 1999, account must be at least
one year old in order to be eligible for the waiver of the CDSC.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

Account and Share Information

CONFIRMATIONS AND ACCOUNT STATEMENTS

DIVIDENDS AND CAPITAL GAINS

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

Fund distributions are expected to be primarily capital gains. Redemptions and
exchanges are taxable sales. Please consult your tax adviser regarding your
federal, state, and local tax liability.

Who Manages the Fund?

York, NY 10038-4965.

THE FUND'S PORTFOLIO MANAGERS ARE:

Alexandre de Bethmann

Alexandre de Bethmann has been the Fund's portfolio manager since its inception.
Mr. de Bethmann joined Federated in 1995 as a Senior Portfolio Manager and a
Vice President of the Fund's Adviser. Mr. de Bethmann served as Assistant Vice
President/ Portfolio Manager for Japanese and Korean equities at the College
Retirement Equities Fund from 1994 to 1995. Mr. de Bethmann received his M.B.A.

in Finance from Duke University.

Drew J. Collins

Arminda Aviles

Arminda Aviles is a Senior Investment Analyst who assists the portfolio managers
in selecting and monitoring the securities in which the Fund invests. Ms. Aviles
joined Federated in September 1998. She served as a Latin America Equities
Investment Officer with Brown Brothers Harriman & Company from 1997 to August
1998 and as an Assistant Trade Analyst-Foreign Exchange Desk with the Federal
Reserve Bank during 1995 and 1996. From 1991 through 1994, she served as
Assistant Vice President in the Commercial Banking Division of Chemical Bank.
Ms. Aviles earned her Master of International Affairs from Columbia University.

ADVISORY FEES

The Adviser receives an annual investment advisory fee of 1.25% of the Fund's
average daily net assets. The Adviser may voluntarily waive a portion of its fee
or reimburse the Fund for certain operating expenses.

YEAR 2000 READINESS

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

This information has been audited by Ernst & Young LLP, whose report, along
with the Fund's audited financial statements, is included in the Annual Report.
Financial Highlighs Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

Year Ended November 30 1998 1997 1996/1/
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 13.39 $ 11.56 $10.00
Income From Investment Operations:

Net investment income/(net operating loss) 0.19/2/ (0.06) 0.12
Net realized and unrealized gain/(loss) on investments and
foreign currency transactions (4.48) 2.38/3/ 1.44

TOTAL FROM INVESTMENT OPERATIONS (4.29) 2.32 1.56
Less Distributions:
Distributions from net investment income -- (0.08) --
Distributions from net realized gain on investments and -- (0.41) --
foreign currency transactions

TOTAL DISTRIBUTIONS -- (0.49) --
Net Asset Value, End of Period $ 9.10 $ 13.39 $11.56
Total Return/4/ (32.04%) 20.76% 15.60%

Ratios to Average Net Assets:

Expenses 2.00% 2.17% 1.97%/6/
Net investment income/(net operating loss) 1.59% (0.32%) 1.49%/6/
Expense waiver/reimbursement/5/ 2.20% 1.91% 6.96%/6/
Supplemental Data:

Net assets, end of period (000 omitted) $ 6,400 $14,847 $4,836
Portfolio turnover 201% 79% 38%
</TABLE>

1 Reflects operations for the period from February 28, 1996 (date of initial
public investment) to November 30, 1996.

2 Per share information is based on average shares outstanding. 3 The amount
shown in this caption for a share outstanding does not correspond

with the aggregate net realized and unrealized gain (loss) on investments and
foreign currency for the period ended due to the timing of sales and
repurchases of Fund shares in relation to fluctuating market values of the
investments of the Fund.

4 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

5 This voluntary expense decrease is reflected in both the expense and net
investment income/(net operating loss) ratios shown above.

6 Computed on an annualized basis.

Financial Highlights Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

Year Ended November 30 1998 1997 1996/1/
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $13.24 $11.50 $10.00

Income From Investment Operations:

Net investment income/(net operating loss) 0.09/2/ (0.04) (0.05)
Net realized and unrealized gain/(loss) on investments and foreign currency
transactions (4.41) 2.24/3/ 1.55
TOTAL FROM INVESTMENT OPERATIONS (4.32) 2.20 1.50
Less Distributions:

Distributions from net investment income -- (0.05) --
Distributions from net realized gain on investments and -- (0.41) --
foreign currency transactions

TOTAL DISTRIBUTIONS -- (0.46) --
Net Asset Value, End of Period $ 8.92 $13.24 $11.50
Total Return/4/ (32.63%) 19.72% 15.00%

Ratios to Average Net Assets:

Expenses 2.75% 2.93% 2.72%/6/
Net investment income/(net operating loss) 0.84% (1.29%) (1.20%)/6/
Expense waiver/reimbursement/5/ 2.20% 1.90% 6.96%/6/
Supplemental Data:

Net assets, end of period (000 omitted) $ 4,704 $8,814 $1,355
Portfolio turnover 201% 79% 38%
</TABLE>

1 Reflects operations for the period from February 28, 1996 (date of initial
public investment) to November 30, 1996.

2 Per share information is based on average shares outstanding. 3 The amount
shown in this caption for a share outstanding does not correspond

4 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

5 This voluntary expense decrease is reflected in both the expense and net
investment income/(net operating loss) ratios shown above.

6 Computed on an annualized basis.

Financial Highlights Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

Year Ended November 30 1998 1997 1996/1/
<S> <C> <C> <C>
Net Asset Value, Beginning of Period $ 13.27 $11.48 $10.00

Income From Investment Operations:

Net investment income/(net operating loss) 0.09/2/ (0.04) (0.08)
Net realized and unrealized gain/(loss) on investments and foreign
currency transactions (4.41) 2.27/3/ 1.56
TOTAL FROM INVESTMENT OPERATIONS (4.32) 2.23 1.48
Less Distributions:

Distributions from net investment income -- (0.03) --
Distributions from net realized gain on investments and foreign currency -- (0.41) --
transactions

TOTAL DISTRIBUTIONS -- (0.44) --
Net Asset Value, End of Period $ 8.95 $13.27 $11.48
Total Return4 (32.55%) 19.97% 14.80%
Ratios to Average Net Assets:

Expenses 2.75% 2.93% 2.72%/6/
Net investment income/(net operating loss) 0.84% (1.23%) (1.30%)/6/
Expense waiver/reimbursement5 2.20% 1.90% 6.96%/6/
Supplemental Data:

Net assets, end of period (000 omitted) $ 723 $1,781 $ 260
Portfolio turnover 201% 79% 38%
</TABLE>

1 Reflects operations for the period from February 28, 1996 (date of initial
public investment) to November 30, 1996.

2 Per share information is based on average shares outstanding. 3 The amount
shown in this caption for a share outstanding does not correspond

4 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

5 This voluntary expense decrease is reflected in both the expense and net
investment income/(net operating loss) ratios shown above.

6 Computed on an annualized basis.

[Logo of Federated]

Federated

Latin American Growth Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

MARCH 31, 1999

REVISED JULY 31, 1999

[logo of Federated]

Federated Latin American Growth Fund
Federated Investors Funds
5800 Corporate Drive

Pittsburgh, PA 15237-7000

1-800-341-7400

www.federatedinvestors.com

Investment Company Act File No. 811-7141
Cusip 981487796

Cusip 981487788
Cusip 981487770

G01471-02 (7/99)

Federated is a registered mark
of Federated Investors, Inc.
1999 (C)Federated Investors, Inc.

PROSPECTUS

Federated Emerging Markets Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

A mutual fund seeking long-term growth of capital by investing primarily in
equity securities of issuers and companies located in countries having emerging
markets.

CONTENTS

Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 5
What are the Specific Risks of Investing in the Fund? 7
What do Shares Cost? 8
How is the Fund Sold? 11
How to Purchase Shares 11
How to Redeem and Exchange Shares 13
Account and Share Information 16
Who Manages the Fund? 17
Financial Information 18

MARCH 31, 1999

REVISED JULY 31, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The fund pursues its investment objective by investing at least 65% of its
assets in equity securities of issuers and companies located in countries having
emerging markets. Emerging markets are those which have gross domestic product
per capita lower than $10,000 per year.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

All mutual funds take investment risks. Therefore, it is possible to lose money
by investing in the Fund. The primary factors that may reduce the Fund's returns
include:
. investments in securities of emerging market countries,
. fluctuations in the value of equity securities in foreign securities markets;
. fluctuations in the exchange rate between the U.S. dollar and foreign
currencies;
. the foreign markets in which the Fund invests may be subject to economic or
political conditions which are less favorable than those of the United States
and may lack financial reporting standards or regulatory requirements comparable
to those applicable to U.S. companies; and
. the foreign securities in which the Fund invests may trade infrequently and
may be subject to greater fluctuation in price than other securities.

Risk/Return Bar Chart and Table

The graphic presentation displayed here consists of a bar chart representing the
annual total returns of Class A Shares of Federated Emerging Markets Fund as of
the calendar year-end for each of two years.

The `y' axis reflects the "% Total Return" beginning with "(30%)" and increasing
in increments of 6% up to 0%.

The bar chart shows the variability of the Fund's Class A Shares total returns
on a calendar year-end basis.

The Fund's Class A Shares total return from January 1, 1999 to June 30, 1999 was
37.49%. This total return reflects six months of performance.

Within the period shown in the Chart, the Fund's Class A Shares highest
quarterly return was 13.79% (quarter ended March 31, 1997). Its lowest quarterly
return was (25.24%) (quarter ended September 30, 1998).

Average Annual Total Return

Start of

Calendar Period 1 Year Performance/1/

<S> <C> <C>
Class A (29.14%) (7.38%)
Class B (29.74%) (7.61%)
Class C (26.37%) (6.23%)
IFCIC (22.01%) (12.81%)
</TABLE>

1 The Fund's Class A, Class B and Class C Shares start of performance date was
February 28, 1996.

The table shows the Fund's Class A, Class B and Class C Shares average annual
total returns (reduced to reflect applicable sales charges) compared to the
International Financial Corporation Investable Composite Index (IFCIC), a
broad-based index, for the calendar periods ending December 31, 1998. IFCIC
is an unmanaged market cap-weighted index of over 1,000 securities in 26

emerging market countries.

What are the Fund's Fees and Expenses?

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund's Class A, B, or C Shares.

Shareholder Fees Class A Class B Class C
Fees Paid Directly From Your Investment
<S> <C> <C> <C>
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 5.50% None None

Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or

redemption proceeds, as applicable) 0.00% 5.50% 1.00%
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions)

(as a percentage of offering price) None None None

Redemption Fee (as a percentage of amount redeemed, if applicable) None None None
Exchange Fee None None None

Annual Fund Operating Expenses (Before Waivers)/1/

Expenses That are Deducted From Fund Assets (as a percentage of average net assets)

Management Fee/2/ 1.25% 1.25% 1.25%
Distribution (12b-1) Fee/3/ 0.25% 0.75% 0.75%
Shareholder Services Fee 0.25% 0.25% 0.25%
Other Expenses 1.34% 1.34% 1.34%
Total Annual Fund Operating Expenses 3.09% 3.59%/4/ 3.59%
1 Although not contractually obligated to do so, the adviser and distributor waived certain amounts. These are shown below along

with the net expenses the Fund actually paid for the fiscal year ended
November 30, 1998.

Waivers of Fund Expenses 0.50% 0.25% 0.25%
Total Actual Annual Fund Operating Expenses (after waivers) 2.59% 3.34% 3.34%
2 The adviser voluntarily waived a portion of the management fee. The adviser
can terminate this voluntary waiver at any time. The management fee paid by
the Fund (after the voluntary waiver) was 1.00% for the year ended November
30, 1998.

3 Class A Shares did not pay or accrue the distribution (12b-1) fee during the
fiscal year ended November 30, 1998. Class A Shares have no present intention
of paying or accruing the distribution (12b-1) fee during the year ending
November 30, 1999.

4 Class B Shares convert to Class A Shares (which pay lower ongoing expenses)
approximately eight years after purchase. </TABLE>

EXAMPLE

The following Example is intended to help you compare the cost of investing in
the Fund's Class A Shares, Class B Shares and Class C Shares with the cost of
investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund's Class A, Class B,
and Class C Shares for the time periods indicated and then redeem all of your
Shares at the end of those periods. Expenses assuming no redemption are also
shown. The Example also assumes that your investment has a 5% return each year
and that the Fund's Class A, Class B, and Class C Shares operating expenses are
before waivers as shown in the Table and remain the same. Although your actual
costs may be higher or lower, based on these assumptions your costs would be:

Share Class 1 Year 3 Years 5 Years 10 Years
Class A

Expenses assuming

redemption $845 $1,451 $2,081 $3,765

Expenses assuming no

redemption $845 $1,451 $2,081 $3,765

Class B
Expenses assuming

redemption $912 $1,500 $2,059 $3,744

Expenses assuming no

redemption $362 $1,100 $1,859 $3,744

Class C
Expenses assuming

redemption $462 $1,100 $1,859 $3,854

Expenses assuming no

redemption $362 $1,100 $1,859 $3,854

</TABLE>

What are the Fund's Investment Strategies?

The adviser weighs several factors in selecting investments for the portfolio.
First, the adviser analyzes a country's general economic condition and outlook,
including its interest rates, foreign exchange rates and trade balance. In
connection with this analysis, the adviser also considers how developments in
other countries in the region or the world might affect these factors. Using its
analysis, the adviser tries to identify countries with favorable
characteristics, such as a strengthening economy, favorable inflation rate or
sound budget policy.

The adviser then evaluates available investments in these countries by
examining the issuer's liquidity, industry representation, performance relative
to its industry, and profitability as well its products, the quality of its
management, and its competitive position in the marketplace. Under normal market
conditions, the adviser manages the Fund so that its portfolio contains over 200
stocks. Under normal market conditions, the adviser expects to be invested in
more than 20 countries.

Companies may be grouped together in broad categories called economic sectors.
The adviser may emphasize certain economic sectors in the portfolio that exhibit
stronger growth potential or higher profit margins. The adviser allocates the
portfolio among five economic sectors: consumer, financial, industrial,
resources, and utilities. The adviser tries to select securities that offer the
best potential returns consistent with its general portfolio strategy.

PORTFOLIO TURNOVER

TEMPORARY DEFENSIVE INVESTMENTS

What are the Principal Securities in Which the Fund Invests?

FOREIGN SECURITIES

another country;

. the principal trading market for its securities is in another country; or
. it (or its subsidiaries) derived in its most current fiscal year at least 50%

of its total assets, capitalization, gross revenue or profit from goods
produced, services performed, or sales made in another country.

Foreign securities are often denominated in foreign currencies. Along with the
risks normally associated with domestic equity securities, foreign securities
are subject to currency risks and risks of foreign investing. Trading in certain
foreign markets is also subject to liquidity risks.

DEPOSITARY RECEIPTS

Depositary receipts represent interests in underlying securities issued by a
foreign company. Depositary receipts are not traded in the same market as the
underlying security. American Depositary Receipts (ADRs) provide a way to buy
shares of foreign-based companies in the United States rather than in overseas
markets. ADRs are also traded in U.S. dollars, eliminating the need for foreign
exchange transactions. The foreign securities underlying European Depositary
Receipts (EDRs), Global Depositary Receipts (GDRs), and International Depositary
Receipts (IDRs), are traded globally or outside the United States. Depositary
receipts involve many of the same risks of investing directly in foreign
securities, including currency risks and risks of foreign investing.

FOREIGN EXCHANGE CONTRACTS

EQUITY SECURITIES

Common Stocks

Preferred Stocks

What are the Specific Risks of Investing in the Fund?

STOCK MARKET RISKS

CURRENCY RISKS

The adviser attempts to manage currency risk by limiting the amount the Fund
invests in securities denominated in a particular currency. However,
diversification will not protect the Fund against a general increase in the
value of the U.S. dollar relative to other currencies.

RISKS OF FOREIGN INVESTING

EMERGING MARKET RISKS

The adviser is seeking information regarding the Year 2000 readiness of
countries, issuers, and Fund service providers located in emerging markets. The
Year 2000 problem is the potential for computer errors or failures because
certain computer systems may be unable to interpret dates after December 31,
1999, or experience other date related problems. However, this information may
be incomplete, inaccurate or difficult to obtain. As a result, the adviser may
not be able to assess accurately the potential effects of the Year 2000 problem
on these countries and companies, and these problems could result in material
losses to the Fund. LIQUIDITY RISKS

What do Shares Cost?

Minimum Maximum Sales Charge
Initial/ Contingent
Subsequent Front-End Deferred
Investment Sales Sales

Shares Offered Amounts/1/ Charge/2/ Charge/3/
<S> <C> <C> <C>
Class A $1,500/$100 5.50% 0.00%
Class B $1,500/$100 None 5.50%
Class C $1,500/$100 None 1.00%

</TABLE>

2 Front-End Sales Charge is expressed as a percentage of public offering price.
See "Sales Charge When You Purchase" below.

3 See "Sales Charge When You Redeem" below.

SALES CHARGE WHEN YOU PURCHASE

Class A Shares

Sales Charge

as a Percentage Sales Charge
of Public as a Percentage

Purchase Amount Offering Price of NAV
<S> <C> <C>
Less than $50,000 5.50% 5.82%
$50,000 but less than
$100,000 4.50% 4.71%

$100,000 but less than

$250,000 3.75% 3.90%

$250,000 but less than

$500,000 2.50% 2.56%

$500,000 but less than $1

million 2.00% 2.04%

$1 million or greater/1/ 0.00% 0.00%
</TABLE>

The sales charge at purchase may be reduced or eliminated by:
. purchasing Shares in greater quantities to reduce the applicable sales

charge;

. combining concurrent purchases of Shares:
- by you, your spouse, and your children under age 21; or
- of the same share class of two or more Federated Funds (other than money

market funds);

SALES CHARGE WHEN YOU REDEEM

Your redemption proceeds may be reduced by a sales charge, commonly referred to
as a contingent deferred sales charge (CDSC).

Class A Shares

<S> <C>
A CDSC of 0.75% of the redemption amount applies to Class A Shares

redeemed up to 24 months after purchase under certain investment programs where
an investment professional received an advance payment on the transaction.

Class B Shares

Shares Held Up To: CDSC
1 Year 5.50%
2 Years 4.75%
3 Years 4.00%
4 Years 3.00%
5 Years 2.00%
6 Years 1.00%
7 Years or More 0.00%

Class C Shares

You will pay a 1% CDSC if you redeem Shares within one year of the purchase
date.

</TABLE>

You will not be charged a CDSC when redeeming Shares:
. purchased with reinvested dividends or capital gains;

. purchased within 120 days of redeeming Shares of an equal or lesser amount;
. that you exchanged into the same share class of another Federated Fund

where the shares were held for

the applicable CDSC holding period (other than a money market fund);
. purchased through investment professionals who did not receive advanced sales
payments; or
. if after you purchase Shares, you become disabled as defined by the IRS.

In addition, you will not be charged a CDSC:

. if the Fund redeems your Shares and closes your account for not meeting the
minimum balance requirement;
. if your redemption is a required retirement plan distribution;
. upon the death of the last surviving shareholder of the account.

To keep the sales charge as low as possible, the Fund redeems your Shares in
this order:

. Shares that are not subject to a CDSC; and

. Shares held the longest (to determine the number of years your Shares have
been held, include the time you held shares of other Federated Funds that have
been exchanged for Shares of this Fund).

. The CDSC is then calculated using the share price at the time of purchase or
redemption, whichever is lower.

How is the Fund Sold?

The Fund offers three share classes: Class A Shares, Class B Shares, and Class C
Shares, each representing interests in a single portfolio of securities.

RULE 12B-1 PLAN

How to Purchase Shares

Where the Fund offers more than one share class and you do not specify the
class choice on your New Account Form or form of payment (e.g., Federal Reserve
wire and check), you automatically will receive Class A Shares.

THROUGH AN INVESTMENT PROFESSIONAL

. Establish an account with the investment professional; and

. Submit your purchase order to the investment professional before the end of
regular trading on the NYSE (normally 4:00 p.m. Eastern time). You will receive
the next calculated NAV if the investment professional forwards the order to the
Fund on the same day and the Fund receives payment within three business days.
You will become the owner of Shares and receive dividends when the Fund receives
your payment.

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

An institution may establish an account and place an order by calling the Fund
and the Shares will be priced at the next calculated NAV after the Fund receives
the order.

By Wire Send your wire to:

State Street Bank and Trust Company
Boston, MA
Dollar Amount of Wire

ABA Number 011000028
Attention: EDGEWIRE

Wire Order Number, Dealer Number, or Group Number
Nominee/Institution Name
Fund Name and Number and Account Number

You cannot purchase Shares by wire on holidays when wire transfers are
restricted.

By Check

Make your check payable to The Federated Funds, note your account number on the
check, and mail it to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

If you send your check by a private courier or overnight delivery service that
requires a street address, mail it to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317

Payment should be made in U.S. dollars and drawn on a U.S. bank. The Fund will
not accept third-party checks (checks originally payable to someone other than
you or The Federated Funds).

THROUGH AN EXCHANGE

BY SYSTEMATIC INVESTMENT PROGRAM

BY AUTOMATED CLEARINGHOUSE (ACH)

RETIREMENT INVESTMENTS

How to Redeem and Exchange Shares

You should redeem or exchange Shares:

. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

DIRECTLY FROM THE FUND

By Telephone

By Mail

You may redeem or exchange Shares by mailing a written request to the Fund. You
will receive a redemption amount based on the next calculated NAV after

the Fund receives your written request in proper form. Send requests by mail to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

Send requests by private courier or overnight delivery service to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317 All requests must include:

. Fund Name and Share Class, account number and account registration;
. amount to be redeemed or exchanged;
. signatures of all shareholders exactly as registered; and
. if exchanging, the Fund Name and Share Class, account number and account
registration into which you are exchanging.
Call your investment professional or the Fund if you need special instructions.

Signature Guarantees Signatures must be guaranteed if:

. your redemption will be sent to an address other than the address of record;
. your redemption will be sent to an address of record that was changed within
the last 30 days;
. a redemption is payable to someone other than the shareholder(s) of record;
or
. if exchanging (transferring) into another fund with a different shareholder
registration.

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or
. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:

. to allow your purchase to clear;
. during periods of market volatility; or

REDEMPTIONS FROM RETIREMENT ACCOUNTS

EXCHANGE PRIVILEGES

SYSTEMATIC WITHDRAWAL/
EXCHANGE PROGRAM

. your account has at least a $10,000 balance when you establish the SWP. (You
cannot aggregate multiple Class B Share accounts to meet this minimum balance).

For SWP accounts established prior to April 1, 1999, your account must be at
least one year old in order to be eligible for the waiver of the CDSC.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

Account and Share Information

CONFIRMATIONS AND ACCOUNT STATEMENTS

DIVIDENDS AND CAPITAL GAINS

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

Fund distributions are expected to be primarily capital gains. Redemptions and
exchanges are taxable sales. Please consult your tax adviser regarding your
federal, state, and local tax liability.

Who Manages the Fund?

York, NY 10038-4965.

THE FUND'S PORTFOLIO MANAGERS ARE:

Christopher Matyszewski

Christopher Matyszewski has been the Fund's portfolio manager since July 1999.
Mr. Matyszewski joined Federated in 1997 as an Investment Analyst. He was named
a Portfolio Manager and an Assistant Vice President of the Adviser in July 1999.
He was a Securities Trader for Brandes Investment from September 1994 through
January 1996; he served as a Medical Mission Coordinator with Operation Smile
International from January 1993 through March 1994. Mr. Matyszewski earned his
Masters of International Management from the American Graduate School for
International Management.

Drew J. Collins

Henry A. Frantzen

Henry A. Frantzen has been the Fund's portfolio manager since its inception in
February 1996. Mr. Frantzen joined Federated in 1995 as an Executive Vice
President of the Fund's adviser. Mr. Frantzen served as Chief Investment Officer
of international equities at Brown Brothers Harriman & Co. from 1992 until 1995.

ADVISORY FEES

YEAR 2000 READINESS

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

This information has been audited by Ernst & Young LLP, whose report, along
with the Fund's audited financial statements, is included in the Annual Report.

Financial Highlights--Class A Shares

(For a share outstanding throughout each period)
<TABLE>

<S> <C> <C> <C>
Year Ended November 30 1998 1997 1996/1/
Net Asset Value, Beginning of Period $ 11.64 $ 11.10 $ 10.00
Income From Investment Operations:

Net investment income 0.03 0.01 0.02
Net realized and unrealized gain/(loss) on investments and foreign currency (3.27) 0.53/2/ 1.08
TOTAL FROM INVESTMENT OPERATIONS (3.24) 0.54 1.10
Net Asset Value, End of Period $ 8.40 $ 11.64 $ 11.10
Total Return/3/ (28.02%) 4.86% 11.00%

Ratios to Average Net Assets:

Expenses 2.59% 2.14% 1.97%/5/
Net investment income 0.30% 0.13% 0.31%/5/
Expense waiver/reimbursement/4/ 0.25% 0.65% 3.34%/5/
Supplemental Data:

Net assets, end of period (000 omitted) $32,002 $48,525 $17,327
Portfolio turnover 163% 102% 32%
</TABLE>

1 Reflects operations for the period from February 28, 1996 (date of initial
public investment) to November 30, 1996.

2 The amount shown in this caption for a share outstanding does not correspond
with the aggregate net realized and unrealized gain (loss) on investments and
foreign currency for the period ended due to the timing of sales and
repurchases of Fund shares in relation to fluctuating market values of the
investments of the Fund.

3 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

5 Computed on an annualized basis.

Financial Highlights--Class B Shares

(For a share outstanding throughout each period)
<TABLE>

<S> <C> <C> <C>
Year Ended November 30 1998 1997 1996/1/
Net Asset Value, Beginning of Period $ 11.50 $ 11.04 $10.00
Income From Investment Operations:

Net operating loss (0.08) (0.04) (0.02)
Net realized and unrealized gain/(loss) on investments and foreign currency (3.19) 0.50/2/ 1.06
TOTAL FROM INVESTMENT OPERATIONS (3.27) 0.46 1.04
Net Asset Value, End of Period $ 8.23 $ 11.50 $11.04
Total Return/3/ (28.56%) 4.17% 10.40%

Ratios to Average Net Assets:

Expenses 3.34% 2.89% 2.72%/5/
Net operating loss (0.45%) (0.69%) (0.71%)/5/
Expense waiver/reimbursement/4/ 0.25% 0.65% 3.34%/5/
Supplemental Data:

Net assets, end of period (000 omitted) $10,884 $19,951 $3,747
Portfolio turnover 163% 102% 32%
</TABLE>

1 Reflects operations for the period from February 28, 1996 (date of initial
public investment) to November 30, 1996.

3 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

5 Computed on an annualized basis.

Financial Highlights--Class C Shares

(For a share outstanding throughout each period)
<TABLE>

<S> <C> <C> <C>
Year Ended November 30 1998 1997 1996/1/
Net Asset Value, Beginning of Period $ 11.50 $11.05 $10.00
Income From Investment Operations:

Net operating loss (0.09) (0.04) (0.02)
Net realized and unrealized gain/(loss) on investments and foreign currency (3.18) 0.49/2/ 1.07
TOTAL FROM INVESTMENT OPERATIONS (3.27) 0.45 1.05
Net Asset Value, End of Period $ 8.23 $11.50 $11.05
Total Return/3/ (28.62%) 4.07% 10.50%

Ratios to Average Net Assets:

Expenses 3.34% 2.89% 2.72%/5/
Net operating loss (0.45%) (0.65%) (0.77%)/5/
Expense waiver/reimbursement/4/ 0.25% 0.65% 3.34%/5/
Supplemental Data:

Net assets, end of period (000 omitted) $ 1,872 $3,943 $ 847
Portfolio turnover 163% 102% 32%
</TABLE>

1 Reflects operations for the period from February 28, 1996 (date of initial
public investment) to November 30, 1996.

3 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

4 This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

5 Computed on an annualized basis.

[logo of Federated]

Federated Emerging Markets Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

MARCH 31, 1999

REVISED JULY 31, 1999

[logo of Federated]

Federated Emerging Markets Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

1-800-341-7400

www.federatedinvestors.com

Federated Securities Corp., Distributor

Investment Company Act File No. 811-7141

Cusip 981487804
Cusip 981487887
Cusip 981487879

G01472-02 (7/99)

Federated is a registered mark
of Federated Investors, Inc.
1999 (C)Federated Investors, Inc.

PROSPECTUS

Federated International Growth Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

A mutual fund seeking long-term growth of capital by investing in shares of
other mutual funds, the portfolios of which consist primarily of foreign equity
securities.

CONTENTS

Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 5
What are the Specific Risks of Investing in the Fund? 6
What do Shares Cost? 9
How is the Fund Sold? 11
How to Purchase Shares 11
How to Redeem and Exchange Shares 13
Account and Share Information 15
Who Manages the Fund? 16
Financial Information 18

MARCH 31, 1999

REVISED JULY 31, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The Fund's investment objective is to provide long- term growth of capital. Any
income received from the portfolio is incidental. While there is no assurance
that the Fund will achieve its investment objective, it endeavors to do so by
following the investment strategies and policies described in this prospectus.

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund pursues its investment objective by investing at least 65% of its
assets in shares of other open- end management investment companies for which
affiliates of Federated Investors serve as adviser and principal underwriter
("underlying funds") that invest primarily in foreign equity securities. The
underlying funds in which the Fund will invest include, but are not limited to:

Federated Asia Pacific Growth Fund
Federated Emerging Market Fund
Federated European Growth Fund
Federated International Small Company Fund
Federated Latin American Growth Fund

Each underlying fund seeks to provide long-term growth of capital.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

All mutual funds take investment risks. Therefore, it is possible to lose money
by investing in the Fund. The primary factors that may reduce the Fund's returns
include: . fluctuations in the value of equity securities in foreign securities
markets; . fluctuations in the exchange rate between the U.S. dollar and foreign
currencies; . the foreign markets in which the Fund invests may be subject to
economic or political conditions which are less favorable than those of the
United States and may lack financial reporting standards or regulatory
requirements comparable to those applicable to U.S. companies; . the foreign
securities in which the Fund invests may trade infrequently and may be subject
to greater fluctuation in price than other securities; . the Fund may invest a
significant portion of its assets in a particular geographic region, which makes
it subject to greater currency risk and more susceptible to adverse impact from
actions of foreign governments; . prices of emerging market securities in which
the Fund invests can be significantly more volatile than prices of securities in
developed countries; . the smaller market capitalization of the companies in
which the Fund invests, which may mean that the companies' stock is less liquid
and subject to price volatility; and . the exchange rate between the Euro and
the U.S. dollar will have a significant impact on the value of the Fund's
investments because the Fund makes significant investments in securities
denominated in Euro.

Risk/Return Bar Chart and Table

The graphic presentation displayed here consists of a bar chart representing the
annual total return of Class A Shares of Federated International Growth Fund as
of the calendar year-end for the last year.

The `y' axis reflects the "% Total Return" beginning with "0.0%" and increasing
in increments of 0.1% up to 0.5%.

The `x' axis represents calculation periods from the earliest first full
calendar year end of the Fund's Class A Shares start of business through the
calendar year ended 1998. The light gray shaded chart features one distinct
vertical bar, shaded in charcoal, and visually representing by height the total
return percentage for the calendar year stated directly at its base. The
calculated total return percentage for the Fund for each calendar year is stated
directly at the top of each respective bar, for the calendar year 1998, The
percentage noted is: 0.49%.

The bar chart shows the variability of the Fund's Class A Shares total returns
on a calendar year-end basis.

The Fund's Class A Shares are sold subject to a sales charge (load). The impact
of the sales charge is not reflected in the total return above, and if this
amount was reflected, return would be less than that shown.

The Fund's Class A Shares total return from January 1, 1999 to June 30, 1999 was
15.63%. This total return reflects six months of performance.

Within the period shown in the Chart, the Fund's Class A Shares highest
quarterly return was 13.61% (quarter ended December 31, 1998). Its lowest
quarterly return was (15.92%) (quarter ended September 30, 1998).

Average Annual Total Return

Start of
1 Year Performance/1/

<S> <C> <C>
Class A (5.00%) (11.79%)
Class B (5.69%) (11.98%)
Class C (1.21%) (8.94%)
MSCI-ACW 14.46% 2.40%
MSCI-EAFE 20.00% 6.43%
</TABLE>

1 The Fund's Class A, Class B and Class C Shares start of performance date was
July 1, 1997.

The table shows the Fund's Class A, Class B and Class C Shares average annual
total returns (reduced to reflect sales charges) compared to the Morgan Stanley
Capital International All Country World Index (MSCI-ACW) and the Morgan Stanley
Capital International Europe Australia Far East Index (MSCI-EAFE), broad-based
indices, for the calendar periods ending December 31, 1998. The MSCI-ACW is a
market cap- weighted securities index of the performance, by industry, of
securities in the stock exchanges of 22 countries. The MSCI- EAFE is a market
cap-weighted foreign securities index widely used to measure the performance of
European, Australian, New Zealand, and Far Eastern stock markets.

What are the Fund's Fees and Expenses?

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund's Class A, B, or C Shares.

Shareholder Fees

Fees Paid Directly From Your Investment Class A Class B Class C
<S> <C> <C> <C>
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 5.50% None None
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or

redemption proceeds, as applicable) 0.00% 5.50% 1.00%
Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions) (as a None None None

percentage of offering price)

Redemption Fee (as a percentage of amount redeemed, if applicable) None None None
Exchange Fee None None None

Annual Fund Operating Expenses (Before Reimbursements and Waivers)/1/
Expenses That are Deducted From Fund Assets (as a percentage of average net assets)

Management Fee/2/ NA NA NA
Distribution (12b-1) Fee/3/ 0.25% 0.75% 0.75%
Shareholder Services Fee/4/ 0.25% 0.25% 0.25%
Other Expenses/5/ 1.75% 1.75% 1.75%
Total Annual Fund Operating Expenses 2.25% 2.75%/6/ 2.75%
1 Although not contractually obligated to do so, the adviser reimbursed and the distributor and shareholder services provider

waived certain amounts. These are shown below along with the net expenses the Fund actually paid for the fiscal year ended
November 30, 1998.
Reimbursements and Waivers of Fund Expenses 2.18% 1.93% 1.93%
Total Actual Annual Fund Operating Expenses (after reimbursements and waivers) 0.07% 0.82% 0.82%

2 Because the Fund does not invest in individual securities at the present
time, it pays the adviser no management fee. The management fee is
contingent upon the grant of certain exemptive relief from the SEC. If the
Fund were paying or accruing the management fee, the Fund would be able to
pay up to 1.25% of its average daily net assets which are invested in
individual stocks, bonds or money market instruments, and not on those
assets invested in shares of the underlying funds. The Fund may also charge
an asset allocation fee of 0.20% of its average daily net assets invested in
the underlying funds. The Fund did not pay or accrue the asset allocation
fee during the fiscal year ended November 30, 1998. The Fund has no present
intention of paying or accruing the asset allocation fee during the year
ending November 30, 1999.

4 The shareholder services fee for Class A, B and C Shares has been
voluntarily reduced. This voluntary reduction can be terminated at any time.
The shareholder services fee paid by the Fund's Class A, B and C Shares
(after the voluntary reduction) was 0.00% for the year ended November 30,
1998.

5 The adviser voluntarily reimbursed certain operating expenses of the Fund.
The adviser can terminate this voluntary reimbursement at any time. Total
other expenses paid by the Fund (after the voluntary reimbursement) were
0.07% for the year ended November 30, 1998.

6 Class B Shares convert to Class A Shares (which pay lower ongoing expenses)
approximately eight years after purchase. </TABLE>

EXAMPLE

The following Example is intended to help you compare the cost of investing in
the Fund's Class A, Class B, and Class C Shares with the cost of investing in
other mutual funds.

Expenses assuming no

redemption $766 $1,215 $1,689 $2,993

Class B
Expenses assuming

redemption $828 $1,253 $1,654 $2,960

Expenses assuming no

redemption $278 $ 853 $1,454 $2,960

Class C
Expenses assuming

redemption $378 $ 853 $1,454 $3,080

Expenses assuming no

redemption $278 $ 853 $1,454 $3,080

</TABLE>

What are the Fund's Investment Strategies?

Federated Asia Pacific Growth Fund
Federated Emerging Market Fund
Federated European Growth Fund
Federated International Small Company Fund
Federated Latin American Growth Fund

Each underlying fund seeks to provide long-term growth of capital.

The adviser believes that holding a diversified portfolio of international
equity funds may provide access to a wider range of companies, industries,
countries and markets than would be available through any one underlying fund.
The adviser will allocate the Fund's assets across the underlying funds such
that the Fund will be exposed to large and small capitalization stocks from both
developed and emerging markets outside of the United States. Market
capitalization is determined by multiplying the number of its outstanding shares
by the current market price per share.

From time to time, the adviser will alter the allocation percentages of the
underlying funds based on market risk, economic fundamentals and unique market
characteristics within the foreign markets and asset classes in which the
underlying funds invest. The adviser will first assess the relative
attractiveness of geographic regions and individual countries. After identifying
the most and least attractive regions or countries, consideration will be given
to expected returns and risks before deciding which areas, if any, to overweight
or underweight. By rebalancing the Fund through investment of the proceeds of
new purchases into the Fund, by making purchases and sales among the shares of
the underlying funds, or a combination of the two, the adviser will continually
manage the Fund's exposure to large and small capitalization stocks from both
developed and emerging markets.

PORTFOLIO TURNOVER

TEMPORARY DEFENSIVE INVESTMENTS

What are the Principal Securities in Which the Fund Invests?

The Fund invests at least 65% of its total assets in shares of the underlying
funds. The principal securities in which the underlying funds invest are:

FOREIGN SECURITIES

Foreign securities are securities of issuers based outside the United States.
The Fund considers an issuer to be based outside the United States if: . it is
organized under the laws of, or has a principal office located in, another
country; . the principal trading market for its securities is in another
country; or . it (or its subsidiaries) derived in its most current fiscal year
at least 50% of its total assets, capitalization, gross revenue or profit from
goods produced, services performed, or sales made in another country.

The fund may invest in foreign securities by investing in other mutual funds
that own foreign securities and that are advised by an affiliate of the Fund's
adviser. These other mutual funds are managed independently of the Fund and may
incur additional administrative expenses.

DEPOSITARY RECEIPTS

FOREIGN EXCHANGE CONTRACTS

EQUITY SECURITIES

Common Stocks

Preferred Stocks

Interests in Other Limited Liability Companies

Entities such as limited partnerships, limited liability companies, business
trusts and companies organized outside the United States may issue securities
comparable to common or preferred stock.

INVESTMENT RATINGS FOR INVESTMENT GRADE SECURITIES

The Adviser will determine whether a security is investment grade based upon the
credit ratings given by one or more nationally recognized rating services. For
example, Standard and Poor's, a rating service, assigns ratings to investment
grade securities (AAA, AA, A, and BBB) based on their assessment of the
likelihood of the issuer's inability to pay interest or principal (default) when
due on each security. Lower credit ratings correspond to higher credit risk. If
a security has not received a rating, the Fund must rely entirely upon the
Adviser's credit assessment that the security is comparable to investment grade.

What are the Specific Risks of Investing in the Fund?

STOCK MARKET RISKS

The value of equity securities in the underlying funds' portfolios will rise and
fall. These fluctuations could be a sustained trend or a drastic movement. The
underlying funds' portfolios will reflect changes in prices of individual
portfolio stocks or general changes in stock valuations. Consequently, the
Fund's share price may decline and you could lose money.

The adviser attempts to manage market risk by limiting the amount the Fund
invests in each underlying fund. However, diversification will not protect the
Fund against widespread or prolonged declines in the stock market.

CURRENCY RISKS

RISKS OF FOREIGN INVESTING

LIQUIDITY RISKS

Trading opportunities are more limited for equity securities that are not widely
held. This may make it more difficult to sell or buy a security at a favorable
price or time. Consequently, the underlying funds may have to accept a lower
price to sell a security, sell other securities to raise cash or give up an
investment opportunity, any of which could have a negative effect on an
underlying fund's performance. Infrequent trading of securities may also lead to
an increase in their price volatility.

REGIONAL RISKS

Certain risks associated with international investments and investing in
smaller, developing capital markets are heightened for investments in Latin
American or Asian or Pacific Rim countries. For example, some of the currencies
of these countries have experienced steady devaluations relative to the U.S.
dollar, and major adjustments have been made in certain of these currencies
periodically.

Although there is a trend toward less government involvement in commerce,
governments of many Latin American, Asian or Pacific Rim countries have
exercised and continue to exercise substantial influence over many aspects of
the private sector. In certain cases, the government still owns or controls many
companies, including some of the largest in the country. Accordingly, government
actions in the future could have a significant effect on economic conditions in
Latin American, Asian or Pacific Rim countries, which could affect private
sector companies and the Fund, as well as the value of securities in the Fund's
portfolio.

EMERGING MARKET RISKS

Generally, the smaller the market capitalization of a company, the fewer the
number of shares traded daily, the less liquid its stock and the more volatile
its price. Market capitalization is determined by multiplying the number of its
outstanding shares by the current market price per share.

Companies with smaller market capitalizations also tend to have unproven track
records, a limited product or service base and limited access to capital. These
factors also increase risks and make these companies more likely to fail than
larger, well capitalized companies.

EURO RISKS

The underlying funds may make significant investments in securities denominated
in the Euro, the new single currency of the European Monetary Union (EMU).
Therefore, the exchange rate between the Euro and the U.S. dollar may have a
significant impact on the value of the Fund's investments.

With the advent of the Euro, the participating countries in the EMU can no
longer follow independent monetary policies. This may limit these country's
ability to respond to economic downturns or political upheavals, and
consequently reduce the value of their foreign government securities.

EXPENSES OF THE FUND

An investor in the Fund should recognize that you may invest directly in
underlying funds and that, by investing in underlying funds indirectly through
the Fund, you will bear not only your proportionate share of the expenses of the
Fund, but also, indirectly, similar expenses of the underlying funds. In
addition, you will bear your proportionate share of expenses, if any, related to
the distribution of the Fund's shares, and also may indirectly bear expenses
paid by an underlying fund related to the distribution of its shares. You also
will bear your proportionate share of any sales charges incurred by the Fund
related to the purchase of shares of the underlying funds.

In certain instances, the Fund may be eligible to purchase underlying funds at
a reduced or no sales charge, whereas an individual investor would have to pay
the full sales charge if the investor directly invested in such underlying
funds. In those instances, it may be possible for an investor to bear greater
transaction and operating expenses by investing directly in the underlying funds
than if the investor were to invest indirectly through such underlying funds as
a shareholder in the Fund (even after aggregating the transaction and operating
expense of the Fund and the underlying funds). Finally, you should recognize
that, as a result of the Fund's policies of investing in other mutual funds, you
may receive taxable capital gains distributions to a greater extent than would
be the case if you invested directly in the underlying funds.

What do Shares Cost?

Minimum Maximum Sales Charge
Initial/ Contingent
Subsequent Front-End Deferred
Investment Sales Sales

Shares Offered Amounts/1/ Charge/2/ Charge/3/
<S> <C> <C> <C>
Class A $1,500/$100 5.50% 0.00%
Class B $1,500/$100 None 5.50%
Class C $1,500/$100 None 1.00%

</TABLE>

Orders for $250,000 or more should be invested in Class A Shares instead of
Class B Shares to maximize your return and minimize the sales charges and
marketing fees. Accounts held in the name of an investment professional may be
treated differently. Class B Shares will automatically convert into Class A
Shares after eight full years from the purchase date. This conversion is a
non-taxable event.

2 Front-End Sales Charge is expressed as a percentage of public offering price.
See "Sales Charge When You Purchase" below.

3 See "Sales Charge When You Redeem" below.

SALES CHARGE WHEN YOU PURCHASE

Class A Shares

Sales Charge

as a Percentage Sales Charge
of Public as a Percentage

Purchase Amount Offering Price of NAV
<S> <C> <C>
Less that $50,00 5.50% 5.82%
$50,000 but less than
$100,000 4.50% 4.71%

$100,000 but less than

$250,000 3.75% 3.90%

$250,000 but less than

$500,000 2.50% 2.56%

$500,000 but less than

$1 million 2.00% 2.04%

$1 million or greater/1/ 0.00% 0.00%
</TABLE>

The sales charge at purchase may be reduced or eliminated by:
. purchasing Shares in greater quantities to reduce the applicable

sales charge;

. combining concurrent purchases of Shares:
- by you, your spouse, and your children under age 21; or
- of the same share class of two or more Federated Funds (other

than money market funds);

SALES CHARGE WHEN YOU REDEEM

Your redemption proceeds may be reduced by a sales charge, commonly referred to
as a contingent deferred sales charge (CDSC).

Class A Shares

<S> <C>
A CDSC of 0.75% of the redemption amount applies to Class A

Shares redeemed up to 24 months after purchase under certain investment
programs where an investment professional received an advance payment on the
transaction.

Class B Shares

Shares Held Up To: CDSC
1 Year 5.50%
2 Years 4.75%
3 Years 4.00%
4 Years 3.00%
5 Years 2.00%
6 Years 1.00%
7 Years or More 0.00%

Class C Shares

You will pay a 1% CDSC if you redeem Shares within one year of the purchase
date.

</TABLE>

You will not be charged a CDSC when redeeming Shares:
. purchased with reinvested dividends or capital gains;
. purchased within 120 days of redeeming Shares of an equal or lesser
amount;
. that you exchanged into the same share class of another Federated Fund
where the original shares were held for the applicable CDSC holding period
(other than a money market fund);
. purchased through investment professionals who did not receive advanced sales
payments; or
. if after you purchase Shares, you become disabled as defined by the IRS.
In addition, you will not be charged a CDSC:
. if the Fund redeems your Shares and closes your account for not meeting the
minimum balance requirement;
. if your redemption is a required retirement plan distribution;
. upon the death of the last surviving shareholder of the account.

To keep the sales charge as low as possible, the Fund redeems your Shares in
this order:

. Shares that are not subject to a CDSC; and

. Shares held the longest (to determine the number of years your Shares have
been held, include the time you held shares of other Federated Funds that have
been exchanged for Shares of this Fund).

. The CDSC is then calculated using the share price at the time of purchase or
redemption, whichever is lower.

How is the Fund Sold?

The Fund offers three share classes: Class A Shares, Class B Shares, and Class C
Shares, each representing interests in a single portfolio of securities.

RULE 12B-1 PLAN

How to Purchase Shares

THROUGH AN INVESTMENT PROFESSIONAL

. Establish an account with the investment professional; and

. Submit your purchase order to the investment professional before the end of
regular trading on the NYSE (normally 4:00 p.m. Eastern time). You will receive
the next calculated NAV if the investment professional forwards the order to the
Fund on the same day and the Fund receives payment within three business days.
You will become the owner of Shares and receive dividends when the Fund receives
your payment.

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

An institution may establish an account and place an order by calling the Fund
and the Shares will be priced at the next calculated NAV after the Fund receives
the order.

By Wire Send your wire to:

State Street Bank and Trust Company
Boston, MA
Dollar Amount of Wire

ABA Number 011000028
Attention: EDGEWIRE

Wire Order Number, Dealer Number, or Group Number
Nominee/Institution Name
Fund Name and Number and Account Number

You cannot purchase Shares by wire on holidays when wire transfers are
restricted.

By Check

Make your check payable to The Federated Funds, note your account number on the
check, and mail it to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

If you send your check by a private courier or overnight delivery service that
requires a street address, mail it to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317

Payment should be made in U.S. dollars and drawn on a U.S. bank. The Fund will
not accept third- party checks (checks originally payable to someone other than
you or The Federated Funds).

THROUGH AN EXCHANGE

BY SYSTEMATIC INVESTMENT PROGRAM

BY AUTOMATED CLEARINGHOUSE (ACH)

RETIREMENT INVESTMENTS

How to Redeem and Exchange Shares

You should redeem or exchange Shares:

. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

DIRECTLY FROM THE FUND

By Telephone

By Mail

You may redeem or exchange Shares by mailing a written request to the Fund. You
will receive a redemption amount based on the next calculated NAV after

the Fund receives your written request in proper form.
Send requests by mail to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

Send requests by private courier or overnight delivery service to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317 All requests must include:

. Fund Name and Share Class, account number and account registration;
. amount to be redeemed or exchanged;
. signatures of all shareholders exactly as registered; and
. if exchanging, the Fund Name and Share Class, account number and account
registration into which you are exchanging.
Call your investment professional or the Fund if you need special instructions.

Signature Guarantees Signatures must be guaranteed if:

. your redemption will be sent to an address other than the address of record;
. your redemption will be sent to an address of record that was changed within
the last 30 days;
. a redemption is payable to someone other than the shareholder(s) of record;
or
. if exchanging (transferring) into another fund with a different shareholder
registration.

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or
. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:

. to allow your purchase to clear;
. during periods of market volatility; or

REDEMPTIONS FROM RETIREMENT ACCOUNTS

EXCHANGE PRIVILEGES

SYSTEMATIC WITHDRAWAL/EXCHANGE PROGRAM

You may automatically redeem or exchange Shares in a minimum amount of $100 on a
regular basis. Complete the appropriate section of the New Account Form or an
Account Service Options Form or by contacting your investment professional or
the Fund. Your account value must meet the minimum initial investment amount at
the time the program is established. This program may reduce, and eventually
deplete, your account. Payments should not be considered yield or income.
Generally, it is not advisable to continue to purchase Shares subject to a sales
charge while redeeming Shares using this program.

. your account has at least a $10,000 balance when you establish the SWP. (You
cannot aggregate multiple Class B Share accounts to meet this minimum balance).

For SWP accounts established prior to April 1, 1999, your account must be at
least one year old in order to be eligible for the waiver of the CDSC.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

Account and Share Information

CONFIRMATIONS AND ACCOUNT STATEMENTS

DIVIDENDS AND CAPITAL GAINS

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

Fund distributions are expected to be primarily capital gains. Redemptions and
exchanges are taxable sales. Please consult your tax adviser regarding your
federal, state, and local tax liability.

Who Manages the Fund?

York, NY 10038-4965.

The Fund's portfolio managers are:

Drew J. Collins

Drew J. Collins has been the Fund's portfolio manager since its inception. He is
Vice President of the Corporation. Mr. Collins joined Federated in 1995 as a
Senior Portfolio Manager and a Senior Vice President of the Fund's Adviser. Mr.
Collins served as Vice President/Portfolio Manager of international equity
portfolios at Arnhold and Bleichroeder, Inc. from 1994 to 1995. He served as an
Assistant Vice President/Portfolio Manager for international equities at the
College Retirement Equities Fund from 1986 to 1994. Mr. Collins is a Chartered
Financial Analyst and received his M.B.A. in finance from the Wharton School of
The University of Pennsylvania.

Henry A. Frantzen

Henry A. Frantzen has been the Fund's portfolio manager since its inception. Mr.
Frantzen joined Federated in 1995 as an Executive Vice President of the Fund's
Adviser. Mr. Frantzen served as Chief Investment Officer of international
equities at Brown Brothers Harriman & Co. from 1992 until 1995.

Alexandre de Bethmann

Alexandre de Bethmann has been the portfolio manager of Federated Asia Pacific
Growth Fund and Federated Latin American Growth Fund, underlying funds, since
their inception. Mr. de Bethmann joined Federated in 1995 as a Senior Portfolio
Manager and a Vice President of the Fund's Adviser.

Christopher Matyszewski

Frank Semack

Frank Semack has been the portfolio manager of Federated European Growth Fund,
an underlying fund, since its inception. Mr. Semack joined Federated in 1995 as
a Senior Portfolio Manager and a Vice President of the Fund's Adviser. Mr.
Semack served as an Investment Analyst at Omega Advisers, Inc. from 1993 to
1994. He was a portfolio manager and Associate Director of Wardley Investment
Services (HK) Ltd. between 1980 and 1993. Mr. Semack received his M.Sc. in
economics from the London School of Economics.

Leonardo Vila

Leonardo A.Vila has been the Fund's portfolio manager since July 1999. Mr. Vila
joined Federated in 1995 as a Quantitative Analyst. He served as an Assistant
Vice President of the Fund's Adviser from January 1998 to July 1999; in April
1998 he was named a Senior Investment Analyst. He was named a Portfolio Manager
and a Vice President of the Adviser in July 1999. From April 1994 to September
1995, Mr. Vila was an Equity Research Manager with the American Stock Exchange.
Mr. Vila earned his M.B.A. with an emphasis in quantitative research from St.

John's University.

ADVISORY FEES

The Adviser is entitled to an annual investment advisory fee equal to 1.25% of
the Fund's average daily net assets. This advisory fee applies only to assets
which are invested in individual stocks, bonds or money market instruments and
not to those assets invested in the underlying funds. Because the Fund does not
invest in individual securities at the present time, it pays the Adviser no
advisory fee.

The investment advisory fees of the underlying funds are not included in the
Fund's advisory fee. There are separate investment advisory fees paid by each
underlying fund. You would not incur the Fund's expenses if you were to invest
in the underlying funds directly.

ASSET ALLOCATION FEE

The Fund has no present intention of paying or accruing the asset allocation fee
during the fiscal year ending November 30, 1998. If an asset allocation fee were
to be charged to the Fund, it could range up to an annual fee of 0.20% of the
average daily net assets invested in the underlying funds. Before this fee would
be implemented, the Directors' approval would be required.

YEAR 2000 READINESS

The "Year 2000" problem is the potential for computer errors or failures because
certain computer systems may be unable to interpret dates after December 31,
1999 or experience other date- related problems. The Year 2000 problem may cause
systems to process information incorrectly and could disrupt businesses, such as
the Fund, that rely on computers. While it is impossible to determine in advance
all of the risks to the Fund, the Fund could experience interruptions in basic
financial and operational functions. Fund shareholders could experience errors
or disruptions in Fund Share transactions or Fund communications.

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

This information has been audited by Ernst & Young LLP, whose report, along
with the Fund's audited financial statements, is included in the Annual Report.

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C>
Year Ended November 30 1998 1997/1/
Net Asset Value, Beginning of Period $ 8.73 $ 10.00
Income From Investment Operations:

Net investment income/(net operating loss) 0.04/2/ (0.01)
Net realized and unrealized loss on investments (0.33) (1.26)

TOTAL FROM INVESTMENT OPERATIONS (0.29) (1.27)
Less Distributions:
Distributions from net investment income (0.06) --
Net Asset Value, End of Period $ 8.38 $ 8.73
Total Return/3/ (3.37%) (12.70%)

Ratios to Average Net Assets:

Expenses 0.08% 0.07%/5/
Net investment income/(net operating loss) 0.51% (0.01%)/5/
Expense waiver/reimbursement/4/ 1.92% 4.32%/5/
Supplemental Data:

Net assets, end of period (000 omitted) $19,440 $10,562
Portfolio turnover 31% 3%
</TABLE>

1 Reflects operations for the period from July 1, 1997 (date of initial public
investment) to November 30, 1997.

2 Per share information is based on average shares outstanding. 3 Based on net
asset value, which does not reflect the sales charge or

contingent deferred sales charge, if applicable.

4 This voluntary expense decrease is reflected in both the expense and net
investment income/(net operating loss) ratios shown above.

5 Computed on an annualized basis.

Financial Highlights--Class B Shares

(For a share outstanding throughout each period)
<TABLE>

<S> <C> <C>
Year Ended November 30 1998 1997/1/
Net Asset Value, Beginning of Period $ 8.71 $ 10.00
Income From Investment Operations:

Net operating loss (0.02)/2/ (0.01)
Net realized and unrealized loss on investments (0.34) (1.28)
TOTAL FROM INVESTMENT OPERATIONS (0.36) (1.29)
Less Distributions:
Distributions from net investment income (0.04) --
Net Asset Value, End of Period $ 8.31 $ 8.71
Total Return/3/ (4.14%) (12.90%)

Ratios to Average Net Assets:

Expenses 0.83% 0.82%/5/
Net operating loss (0.24%) (0.77%)/5/
Expense waiver/reimbursement/4/ 1.92% 2.78%/5/
Supplemental Data:

Net assets, end of period (000 omitted) $8,212 $ 5,036
Portfolio turnover 31% 3%
</TABLE>

1 Reflects operations for the period from July 1, 1997 (date of initial public
investment) to November 30, 1997.

2 Per share information is based on average shares outstanding. 3 Based on net
asset value, which does not reflect the sales charge or

contingent deferred sales charge, if applicable.

4 This voluntary expense decrease is reflected in both the expense and net
operating loss ratios shown above.

5 Computed on an annualized basis.

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C>
Year Ended November 30 1998 1997/1/
Net Asset Value, Beginning of Period $ 8.72 $ 10.00
Income From Investment Operations:

Net operating loss (0.02)/2/ (0.01)
Net realized and unrealized loss on investments (0.33) (1.27)
TOTAL FROM INVESTMENT OPERATIONS (0.35) (1.28)
Less Distributions:
Distributions from net investment income (0.04) --
Net Asset Value, End of Period $ 8.33 $ 8.72
Total Return/3/ (3.99%) (12.80%)

Ratios to Average Net Assets:

Expenses 0.83% 0.82%/5/
Net operating loss (0.24%) (0.77%)/5/
Expense waiver/reimbursement/4/ 1.92% 2.69%/5/
Supplemental Data:

Net assets, end of period (000 omitted) $1,154 $ 680
Portfolio turnover 31% 3%
</TABLE>

1 Reflects operations for the period from July 1, 1997 (date of initial public
investment) to November 30, 1997.

2 Per share information is based on average shares outstanding. 3 Based on net
asset value, which does not reflect the sales charge or

contingent deferred sales charge, if applicable.

4 This voluntary expense decrease is reflected in both the expense and net
operating loss ratios shown above.

5 Computed on an annualized basis.

[Logo of Federated]

Federated International Growth Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

MARCH 31, 1999

REVISED JULY 31, 1999

[logo of Federated]

Federated International Growth Fund

Federated Investors Funds

5800 Corporate Drive

Pittsburgh, PA 15237-7000

1-800-341-7400

www.federatedinvestors.com

Investment Company Act File No. 811-7141

Cusip 981487739

Cusip 981487721

Cusip 981487713

G02118-01-ABC (7/99)

Federated is a registered mark

of Federated Investors, Inc.

1999 (C)Federated Investors, Inc.

PROSPECTUS

Federated International High Income Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

A mutual fund seeking a high level of current income and a secondary objective
of capital appreciation by investing primarily in government and corporate debt
obligations of issuers in emerging market countries and developed foreign
countries.

<TABLE>
<CAPTION>
CONTENTS

<S> <C>
Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 5
What are the Specific Risks of Investing in the Fund? 7
What Do Shares Cost? 8
How is the Fund Sold? 11
How to Purchase Shares 12
How to Redeem and Exchange Shares 13
Account and Share Information 16
Who Manages the Fund? 17
Financial Information 18
</TABLE>
MARCH 31, 1999

REVISED JULY 31, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The Fund's investment objective is to seek a high level of current income. The
Fund has a secondary objective of capital appreciation. While there is no
assurance that the Fund will achieve its investment objective, it endeavors to
do so by following the strategies and policies described in this prospectus.

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund invests in foreign government and corporate debt obligations. The
securities may be denominated in foreign currency or in U.S. dollars. The
adviser looks primarily for securities offering higher interest rates. In
implementing this strategy, the Adviser will invest in emerging market
countries. Many emerging market countries issue securities rated below
investment grade. The Fund may invest up to 80% of its foreign securities
portfolio in emerging markets, with the balance invested in developed markets.
The Fund does not limit the amount it may invest in securities rated below
investment grade.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

All mutual funds take investment risks. Therefore, it is possible to lose money
by investing in the Fund. The primary factors that may reduce the Fund's returns
include:
. fluctuations in the exchange rate between the U.S. dollar and foreign
currencies;
. a general rise in interest rates;
. defaults or an increase in the risk of defaults on portfolio securities;
. prices of emerging market securities in which the Fund invests can be
significantly more volatile than prices of securities in developed countries;
. the foreign securities in which the Fund invests may trade infrequently and
may be subject to greater fluctuation in price than other securities;
. the foreign markets in which the Fund invests may be subject to economic or

are less favorable than those of the United States

and may lack financial reporting standards or regulatory requirements comparable
to those applicable to U.S. companies; . the Fund invests in the securities
rated below investment grade which may be subject to greater market, credit and
liquidity risks than investment grade securities; and . the possibility that a
certain sector may underperform other sectors or the market as a whole.

Risk/Return Bar Chart and Table

The graphic presentation displayed here consists of a bar chart representing the
annual total returns of Class A Shares of Federated International High Income
Fund as of the calendar year-end for each of two years.

The `y' axis reflects the "% Total Return" beginning with "(7%)" and increasing
in increments of 1% up to 3%.

The `x' axis represents calculation periods from the earliest first full
calendar year end of the Fund's Class B Shares start of business through the
calendar year ended 1998. The light gray shaded chart features two distinct
vertical bars, each shaded in charcoal, and each visually representing by height
the total return percentages for the calendar year stated directly at its base.
The calculated total return percentage for the Fund for each calendar year is
stated directly at the top of each respective bar, for the calendar years 1997
through 1998, The percentages noted are: 2.17% and (6.54%).

The bar chart shows the variability of the Fund's Class B Shares total returns
on a calendar year-end basis.

The Fund's Class B Shares are sold subject to a contingent deferred sales charge
(load). The impact of the contingent deferred sales charges are not reflected in
the total returns above, and if these amounts were reflected, the returns would
be less than those shown. The Fund's Class B Shares total return from
January 1, 1999 to June 30, 1999 was 2.06%. This total return reflects six
months of performance. Within the period shown in the Chart, the Fund's
Class B Shares highest quarterly return was 11.47% (quarter ended December 31,
1998). Its lowest quarterly return was (15.84%) (quarter ended September 30,
1998).

Average Annual Total Return

Start of
1 Year Performance/1/

<S> <C> <C>
Class A (10.05%) (1.70%)
Class B (11.17%) (1.85%)
Class C (7.38%) (0.43%)
JPM-EMB (14.35%) 0.98%
</TABLE>

1 The Fund's Class A, Class B and C Shares start of performance date was October
2, 1996.

The table shows the Fund's Class A, Class B and Class C Shares average annual
total returns (reduced to reflect applicable sales charges) compared to the JP
Morgan Emerging Markets Bond Index Plus (JPM-EMB), a broad-based market index,
comprised of 14 emerging market countries which track total returns of external
currency denominated debt instruments of the emerging markets.

What are the Fund's Fees and Expenses?

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund's Class A, B, or C Shares.

Shareholder Fees Class A Class B Class C
Fees Paid Directly From Your Investment
<S> <C> <C> <C>
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 4.50% None None
Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or

redemption proceeds, as applicable) 0.00% 5.50% 1.00%

Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions)

(as a percentage of offering price) None None None

Redemption Fee (as a percentage of amount redeemed, if applicable) None None None
Exchange Fee None None None

Annual Fund Operating Expenses (Before Waivers)1

Expenses That are Deducted From Fund Assets (as a percentage of average net assets)

Management Fee/2/ 0.85% 0.85% 0.85%
Distribution (12b-1) Fee/3/ 0.25% 0.75% 0.75%
Shareholder Services Fee 0.25% 0.25% 0.25%
Other Expenses 0.68% 0.68% 0.68%
Total Annual Fund Operating Expenses 2.03% 2.53%/4/ 2.53%
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 November 30, 1999.

Waivers of Fund Expenses 1.03% 0.78% 0.78%
Total Annual Fund Operating Expenses (after waivers) 1.00% 1.75% 1.75%
2 The adviser voluntarily expects to waive a portion of the management fee.
The adviser can terminate this voluntary waiver at any time. The management
fee the Fund expects to pay (after the voluntary waiver) is 0.07% for the
year ending November 30,1999.

3 Class A Shares did not pay or accrue the distribution (12b-1) fee during the
year ended November 30, 1998. Class A Shares has no present intention of
paying or accruing the distribution (12b-1) fee during the year ending
November 30, 1999.

4 Class B Shares convert to Class A Shares (which pay lower ongoing expenses)
approximately eight years after purchase. </TABLE>

EXAMPLE

The following Example is intended to help you compare the cost of investing in
the Fund's Class A Shares, Class B Shares and Class C Shares with the cost of
investing in other mutual funds.

The Example assumes that you invest $10,000 in the Fund's Class A Shares,
Class B Shares and Class C Shares for the time periods indicated and then redeem
all of your Shares at the end of those periods. Expenses assuming no redemption
are also shown. The Example also assumes that your investment has a 5% return
each year and that the Fund's Class A Shares, Class B Shares and Class C Shares
operating expenses are before waivers as shown in the Table and remain the same.
Although your actual costs may be higher or lower, based on these assumptions
your costs would be: <TABLE> <CAPTION> Share Class 1 Year 3 Years 5 Years 10
Years Class A <S> <C> <C> <C> <C> Expenses assuming redemption $647 $ 1,058
$1,494 $2,702

Expenses assuming no

redemption $647 $ 1,058 $1,494 $2,702

Class B
Expenses assuming

redemption $806 $ 1,188 $1,545 $2,743

Expenses assuming no

redemption $256 $ 788 $1,345 $2,743

Class C
Expenses assuming

redemption $356 $ 788 $1,345 $2,866

Expenses assuming no

redemption $256 $ 788 $1,345 $2,866

</TABLE>

What are the Fund's Investment Strategies?

The adviser attempts to manage the risks of these high yield securities in two
ways. First, by investing the portfolio in a large number of securities from a
wide range of foreign countries. Second, by allocating the portfolio among
countries whose markets, based on historical analysis, respond differently to
changes in the global economy.

The adviser weighs several factors in selecting investments for the portfolio.
First, the adviser analyzes a country's general economic condition and outlook,
including its interest rates, foreign exchange rates and current account
balance. The adviser then analyzes the country's financial condition, including
its credit ratings, government budget, tax base, outstanding public debt and the
amount of public debt held outside the country. In connection with this
analysis, the adviser also considers how developments in other countries in the
region or the world might affect these factors. Using its analysis, the adviser
tries to identify countries with favorable characteristics, such as a
strengthening economy, favorable inflation rate, sound budget policy or strong
public commitment to repay government debt. The adviser then analyzes the
business, competitive position, and financial condition of the issuer to assess
whether the security's risk is commensurate with its potential return.

PORTFOLIO TURNOVER

TEMPORARY DEFENSIVE INVESTMENTS

What are the Principal Securities in Which the Fund Invests?

FOREIGN SECURITIES

Foreign securities are often denominated in foreign currencies. Along with the
risks normally associated with domestic fixed income securities, foreign
securities are subject currency risks and risks of foreign investing. Trading in
certain foreign markets is also subject to liquidity risks.

FOREIGN EXCHANGE CONTRACTS

FIXED INCOME SECURITIES

Fixed income securities pay interest, dividends or distributions at a specified
rate. The rate may be a fixed percentage of the principal or adjusted
periodically. In addition, the issuer of a fixed income security must repay the
principal amount of the security, normally within a specified time.

A security's yield measures the annual income earned on a security as a
percentage of its price. A security's yield will increase or decrease depending
upon whether it costs less (a discount) or more (a premium) than the principal
amount. If the issuer may redeem the security before its scheduled maturity, the
price and yield on a discount or premium security may change based upon the
probability of an early redemption. Securities with higher risks generally have
higher yields.

The following describes the principal types of fixed income securities in
which the Fund invests.

Foreign Government Securities

Foreign government securities generally consist of fixed income securities
supported by national, state or provincial governments or similar political
subdivisions. Foreign government securities also include debt obligations of
supranational entities, such as international organizations designed or
supported by governmental entities to promote economic reconstruction or
development, international banking institutions and related government agencies.
Examples of these include, but are not limited to, the International Bank for
Reconstruction and Development (the World Bank), the Asian Development Bank, the
European Investment Bank and the Inter- American Development Bank.

Foreign government securities also include fixed income securities of
quasi-governmental agencies that are either issued by entities owned by a
national, state or equivalent government or are obligations of a political unit
that are not backed by the national government's full faith and credit. Further,
foreign government securities include mortgage-related securities issued or
guaranteed by national, state or provincial governmental instrumentalities,
including quasi-governmental agencies.

Corporate Debt Securities

Corporate debt securities are fixed income securities issued by businesses.
Notes, bonds, debentures and commercial paper are the most prevalent types of
corporate debt securities. The Fund may also purchase interests in bank loans to
companies. The credit risks of corporate debt securities vary widely among
issuers.

INVESTMENT RATINGS FOR INVESTMENT GRADE SECURITIES

What are the Specific Risks of Investing in the Fund?

CURRENCY RISKS

. Exchange rates for currencies fluctuate daily. The combination of currency
risk and market risks tends to make securities traded in foreign markets more
volatile than securities traded exclusively in the U.S.

. The adviser attempts to manage currency risk by limiting the amount the Fund
invests in securities denominated in a particular currency. However,
diversification will not protect the Fund against a general increase in the
value of the U.S. dollar relative to other currencies.

BOND MARKET RISKS

. Prices of fixed income securities rise and fall in response to interest rate
changes for similar securities. Generally, when interest rates rise, prices of
fixed income securities fall.

. Interest rate changes have a greater effect on the price of fixed income
securities with longer durations. Duration measures the price sensitivity of a
fixed income security to changes in interest rates.

CREDIT RISKS

. Credit risk is the possibility that an issuer will default on a security by
failing to pay interest or principal when due. If an issuer defaults, the Fund
will lose money.

. Many fixed income securities receive credit ratings from services such as
Standard & Poor's and Moody's Investor Services. These services assign ratings
to securities by assessing the likelihood of issuer default. Lower credit
ratings correspond to higher credit risk. If a security has not received a
rating, the Fund must rely entirely upon the Adviser's credit assessment.

. Fixed income securities generally compensate for greater credit risk by paying
interest at a higher rate. The difference between the yield of a security and
the yield of a U.S. Treasury security with a comparable maturity (the spread)
measures the additional interest paid for risk. Spreads may increase generally
in response to adverse economic or market conditions. A security's spread may
also increase if the security's rating is lowered, or the security is perceived
to have an increased credit risk. An increase in the spread will cause the price
of the security to decline.

RISKS OF FOREIGN INVESTING

. Foreign securities pose additional risks because foreign economic or political
conditions may be less favorable that those of the United States. Foreign
financial markets may also have fewer investor protections. Securities in
foreign markets may also be subject to taxation policies that reduce returns for
U.S. investors.

. Foreign companies may not provide information (including financial statements)
as frequently or to as great an extent as companies in the United States.
Foreign companies may also receive less coverage than United States companies by
market analysts and the financial press. In addition, foreign countries may lack
uniform accounting, auditing and financial reporting standards or regulatory
requirements comparable to those applicable to U.S. companies. These factors may
prevent the Fund and its adviser from obtaining information concerning foreign
companies that is as frequent, extensive and reliable as the information
available concerning companies in the United States.

. Foreign countries may have restrictions on foreign ownership or may impose
exchange controls, capital flow restrictions or repatriation restrictions which
could adversely affect the Fund's investments.

LIQUIDITY RISKS

. Trading opportunities are more limited for fixed income securities that have
not received any credit ratings, have received ratings below investment grade,
are not widely held or are issued by companies located in emerging markets.
These features may make it more difficult to sell or buy a security at a
favorable price or time. Consequently, the Fund may have to accept a lower price
to sell a security, sell other securities to raise cash or give up an investment
opportunity, any of which could have a negative effect on the Fund's
performance. Infrequent trading of securities may also increase their price
volatility.

SECTOR RISKS

. A substantial part of the Fund's portfolio may be comprised of securities
issued or credit enhanced by companies in similar businesses, or with other
similar characteristics. As a result, the Fund will be more susceptible to any
economic, business, political, or other developments which generally affect
these issuers.

RISKS ASSOCIATED WITH NONINVESTMENT GRADE SECURITIES

. Securities rated below investment grade, also known as junk bonds, generally
entail greater market, credit and liquidity risks than investment grade
securities. For example, their prices are more volatile, economic downturns and
financial setbacks may affect their prices more negatively, and their trading
market may be more limited.

EMERGING MARKET RISKS

. Securities issued or traded in emerging markets generally entail greater risks
than securities issued or traded in developed markets. For example, their prices
can be significantly more volatile than prices in developed countries. Emerging
market economies may also experience more severe downturns (with corresponding
currency devaluations) than developed economies.

. Emerging market countries may have relatively unstable governments and may
present the risk of nationalization of businesses, expropriation, confiscatory
taxation or, in certain instances, reversion to closed market, centrally planned
economies. . The Adviser is seeking information regarding the Year 2000
readiness of countries, issuers, and Fund service providers located in emerging
markets. The Year 2000 problem is the potential for computer errors or failures
because certain computer systems may be unable to interpret dates after December
31, 1999, or experience other date-related problems. However, this information
may be incomplete, inaccurate or difficult to obtain. As a result, the Adviser
might not be able to assess accurately the potential effects of the Year 2000
problem on these countries and companies, and these problems could result in
material losses to the Fund. What do Shares Cost?

Minimum Maximum Shares Charge
Initial/ Contingent
Subsequent Front-End Deferred

Shares Offered Investment Sales Sales
Amounts/1/ Charge/2/ Charge/3/

<S> <C> <C> <C>
Class A $ 1,500/$10 4.50% 0.00%
Class B $1,500/$100 None 5.50%
Class C $1,500/$100 None 1.00%
</TABLE>

2 Front-End Sales Charge is expressed as a percentage of public offering
price. See "Sales Charge When You Purchase."
3 See "Sales Charge When You Redeem."

SALES CHARGE WHEN YOU PURCHASE

Class A Shares

Purchase Amount Sales Charge

as a Percentage Sales Charge
of Public as a Percentage
Offering Price of NAV

<S> <C> <C>
Less than $100,000 4.50% 4.71%
$100,000 but less than
$250,000 3.75% 3.90%

$250,000 but less than

$500,000 2.50% 2.56%

$500,000 but less than $1

million 2.00% 2.04%

$1 million or greater/1/ 0.00% 0.00%
</TABLE>

1 A contingent deferred sales charge of 0.75% of the redemption amount
applies to Class A Shares redeemed up to 24 months after purchase under
certain investment programs where an investment professional received an
advance payment on the transaction.

The sales charge at purchase may be reduced or eliminated by:
. purchasing Shares in greater quantities to reduce the applicable

sales charge;

. combining concurrent purchases of Shares:
- by you, your spouse, and your children under age 21; or
- of the same share class of two or more Federated Funds (other than money

market funds);

SALES CHARGE WHEN YOU REDEEM

Your redemption proceeds may be reduced by a sales charge, commonly referred to
as a contingent deferred sales charge (CDSC).

Class A Shares

<S> <C>
A CDSC of 0.75% of the redemption amount applies to Class A Shares

redeemed up to 24 months after purchase under certain investment programs where
an investment professional received an advance payment on the transaction.

Class B Shares

Shares Held Up To: CDSC
1 Year 5.50%
2 Years 4.75%
3 Years 4.00%
4 Years 3.00%
5 Years 2.00%
6 Years 1.00%
7 Years or More 0.00%

Class C Shares

You will pay a 1% CDSC if you redeem Shares within one year of the purchase
date.

</TABLE>

You will not be charged a CDSC when redeeming Shares:
. purchased with reinvested dividends or capital gains;

. purchased within 120 days of redeeming Shares of an equal or lesser amount;
. that you exchanged into the same share class of another Federated Fund
where the shares were held for

In addition, you will not be charged a CDSC:

To keep the sales charge as low as possible, the Fund redeems your Shares in
this order:

. Shares that are not subject to a CDSC; and

. Shares held the longest (to determine the number of years your Shares have
been held, include the time you held shares of other Federated Funds that have
been exchanged for Shares of this Fund).

The CDSC is then calculated using the share price at the time of purchase or
redemption, whichever is lower.

How is the Fund Sold?

The Fund offers three share classes: Class A Shares, Class B Shares, and Class C
Shares, each representing interests in a single portfolio of securities.

RULE 12B-1 PLAN

How to Purchase Shares

THROUGH AN INVESTMENT PROFESSIONAL

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account
Form; and . Send your payment to the Fund by Federal Reserve wire or check.

An institution may establish an account and place an order by calling the Fund
and the Shares will be priced at the next calculated NAV after the Fund receives
the order.

By Wire Send your wire to:

State Street Bank and Trust Company
Boston, MA
Dollar Amount of Wire

ABA Number 011000028
Attention: EDGEWIRE

Wire Order Number, Dealer Number, or Group Number
Nominee/Institution Name
Fund Name and Number and Account Number

You cannot purchase Shares by wire on holidays when wire transfers are
restricted.

By Check

Make your check payable to The Federated Funds, note your account number on the
check, and mail it to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

If you send your check by a private courier or overnight delivery service that
requires a street address, mail it to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317

Payment should be made in U.S. dollars and drawn on a U.S. bank. The Fund will
not accept third-party checks (checks originally payable to someone other than
you or The Federated Funds).

THROUGH AN EXCHANGE

BY SYSTEMATIC INVESTMENT PROGRAM

Once you have opened an account, you may automatically purchase additional
Shares on a regular basis by completing the Systematic Investment Program (SIP)
section of the New Account Form or by contacting the Fund or your investment
professional. The minimum investment amount for SIPs is $50.

BY AUTOMATED CLEARINGHOUSE (ACH)

RETIREMENT INVESTMENTS

How to Redeem and Exchange Shares

You should redeem or exchange Shares:

. through an investment professional if you purchased Shares through an
investment professional; or
. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

DIRECTLY FROM THE FUND

By Telephone

By Mail

You may redeem or exchange Shares by mailing a written request to the Fund. You
will receive a redemption amount based on the next calculated NAV after

the Fund receives your written request in proper form. Send requests by mail to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

Send requests by private courier or overnight delivery service to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317 All requests must include:

. Fund Name and Share Class, account number and account registration;
. amount to be redeemed or exchanged;
. signatures of all shareholders exactly as registered; and
. if exchanging, the Fund Name and Share Class, account number and account
registration into which you are exchanging.
Call your investment professional or the Fund if you need special instructions.

Signature Guarantees Signatures must be guaranteed if:

. your redemption will be sent to an address other than the address of record;
. your redemption will be sent to an address of record that was changed within
the last 30 days;
. a redemption is payable to someone other than the shareholder(s) of record;
or
. if exchanging (transferring) into another fund with a different shareholder
registration.

A signature guarantee is designed to protect your account from fraud. Obtain a
signature guarantee from a bank or trust company, savings association, credit
union, or broker, dealer, or securities exchange member. A notary public cannot
provide a signature guarantee.

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or
. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:

. to allow your purchase to clear;
. during periods of market volatility; or

REDEMPTIONS FROM RETIREMENT ACCOUNTS

EXCHANGE PRIVILEGES

SYSTEMATIC WITHDRAWAL/
EXCHANGE PROGRAM

. your account has at least a $10,000 balance when you establish the SWP. (You
cannot aggregate multiple Class B Share accounts to meet this minimum balance).

For SWP accounts established prior to April 1, 1999, your account must be at
least one year old in order to be eligible for the waiver of the CDSC.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

Account and Share Information

CONFIRMATIONS AND ACCOUNT STATEMENTS

DIVIDENDS AND CAPITAL GAINS

The Fund declares daily and pays any dividends monthly to shareholders.
Dividends are paid to all shareholders invested in the Fund on the record date.
The record date is the date on which a shareholder must officially own Shares in
order to earn a dividend.

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

Fund distributions are expected to be primarily dividends. Redemptions and
exchanges are taxable sales. Please consult your tax adviser regarding your
federal, state, and local tax liability.

Who Manages the Fund?

York, NY 10038-4965.

THE FUND'S PORTFOLIO MANAGERS ARE:

Micheal W. Casey, Ph.D.

Micheal W. Casey, Ph.D. has been the Fund's portfolio manager since January
1997. Mr. Casey joined Federated Investors in 1996 as a Senior Investment
Analyst and an Assistant Vice President. Mr. Casey currently serves as a
Portfolio Manager and has been a Vice President of the Adviser since 1998. Mr.
Casey served as an International Economist and Portfolio Strategist for Maria
Fiorini Ramirez Inc. from 1990 to 1996. Mr. Casey earned a Ph.D. concentrating
in economics from The New School for Social Research and a M.Sc. from the London

School of Economics.

Robert M. Kowit

Robert M. Kowit has been the Fund's portfolio manager since its inception. Mr.
Kowit joined Federated Investors in 1995 as a Senior Portfolio Manager and a
Vice President of the Fund's Adviser. Mr. Kowit served as a Managing Partner of
Copernicus Global Asset Management from January 1995 through October 1995. From
1990 to 1994, he served as Senior Vice President/Portfolio Manager of
International Fixed Income and Foreign Exchange for John Hancock Advisers. Mr.
Kowit received his M.B.A. from Iona College with a concentration in finance.

Roberto Sanchez-Dahl

Roberto Sanchez-Dahl is a Senior Investment Analyst who assists the portfolio
managers in selecting and monitoring the securities in which the Fund invests.
Mr. Sanchez-Dahl joined Federated Investors in December 1997; from 1994 through
November 1997, he served as an Emerging Markets Credit Associate with Goldman
Sachs & Co. Mr. Sanchez-Dahl earned his M.B.A. from Columbia School of Business.

The Adviser and other subsidiaries of Federated advise approximately 175
mutual funds and separate accounts, which total approximately $111 billion in
assets as of December 31, 1998. Federated was established in 1955 and is one of
the largest mutual fund investment managers in the United States with
approximately 1,900 employees. More than 4,000 investment professionals make
Federated Funds available to their customers.

ADVISORY FEES

The Adviser receives an annual investment advisory fee of 0.85% of the Fund's
average daily net assets. The Adviser may voluntarily waive a portion of its fee
or reimburse the Fund for certain operating expenses.

YEAR 2000 READINESS

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

This information has been audited by Ernst & Young LLP, whose report, along
with the Fund's audited financial statements, is included in the Annual Report.

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C> <C>
Year Ended November 30 1998 1997 1996/1/
Net Asset Value, Beginning of Period $ 9.50 $10.12 $10.00
Income From Investment Operations:

Net investment income 0.94 1.18 0.17/2/
Net realized and unrealized gain/(loss) on investments (1.49) (0.78) 0.13
TOTAL FROM INVESTMENT OPERATIONS (0.55) 0.40 0.30
Less Distributions:
Distributions from net investment income (0.96) (1.02) (0.17)
Distributions in excess of net investment income (0.01)/3/
Distributions from net realized gain on investments and foreign

currency transactions (0.00)/4/ -- --

TOTAL DISTRIBUTIONS (0.96) (1.02) (0.18)
Net Asset Value, End of Period $ 7.99 $ 9.50 $10.12
Total Return/5/ (5.95%) 4.02% 2.99%

Ratios to Average Net Assets:

Expenses 0.82% 0.75% 0.75%/7/
Net investment income 11.07% 10.54% 9.19%/7/
Expense waiver/reimbursement/6/ 0.99% 2.03% 8.46%/7/
Supplemental Data:

Net assets, end of period (000 omitted) $11,052 $9,073 $ 599
Portfolio turnover 128% 93% 0%
</TABLE>

1 Reflects operations for the period from October 2, 1996 (date of initial
public offering) to November 30, 1996. 2 Per share information is based on the
average number of shares outstanding. 3 Distributions in excess of net
investment income were a result of certain book and tax timing differences.
These distributions

do not represent a return of capital for federal income tax purposes.
4 Per share amount does not round to $(0.01).
5 Based on net asset value, which does not reflect the sales charge or

contingent deferred sales charge, if applicable.

6This voluntary expense decrease is reflected in both the expense and net
investment income ratios shown above.

7 Computed on an annualized basis.

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C> <C>
Year Ended November 30 1998 1997 1996/1/
Net Asset Value, Beginning of Period $ 9.50 $ 10.12 $10.00
Income From Investment Operations:

Net investment income 0.89 0.96 0.18/2/
Net realized and unrealized gain/(loss) on investments (1.50) (0.63) 0.11
TOTAL FROM INVESTMENT OPERATIONS (0.61) 0.33 0.29
Less Distributions:
Distributions from net investment income (0.90) (0.95) (0.17)
Distributions from net realized gain on investments and foreign

currency transactions (0.00)/3/ -- --

TOTAL DISTRIBUTIONS (0.90) (0.95) (0.17)
Net Asset Value, End of Period $ 7.99 $ 9.50 $10.12
Total Return/4/ (6.67%) 3.24% 2.87%

Ratios to Average Net Assets:

Expenses 1.57% 1.50% 1.50%/6/
Net investment income 10.37% 9.73% 8.92%/6/
Expense waiver/reimbursement/5/ 0.99% 2.03% 8.46%/6/
Supplemental Data:

Net assets, end of period (000 omitted) $70,458 $49,929 $5,397
Portfolio turnover 128% 93% 0%
</TABLE>

1 Reflects operations for the period from October 2, 1996 (date of initial
public offering) to November 30, 1996. 2 Per share information presented is
based upon the average number of shares outstanding. 3 Per share amount does not
round to $(0.01). 4 Based on net asset value, which does not reflect the sales
charge or contingent deferred sales charge, if applicable. 5 This voluntary
expense decrease is reflected in both the expense and net

investment income ratios shown above.
6 Computed on an annualized basis.

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C> <C>
Year Ended November 30 1998 1997 1996/1/
Net Asset Value, Beginning of Period $ 9.50 $10.12 $10.00
Income From Investment Operations:

Net investment income 0.85 0.98 0.17/2/
Net realized and unrealized gain/(loss) on investments (1.46) (0.65) 0.12
TOTAL FROM INVESTMENT OPERATIONS (0.61) 0.33 0.29
Less Distributions:
Distributions from net investment income (0.90) (0.95) (0.17)
Distributions from net realized gain on investments and foreign

currency transactions (0.00)/3/ -- --
TOTAL DISTRIBUTIONS (0.90) (0.95) (0.17)
Net Asset Value, End of Period $ 7.99 $ 9.50 $10.12
Total Return/4/ (6.67%) 3.24% 2.87%

Ratios to Average Net Assets:

Expenses 1.57% 1.50% 1.50%/6/
Net investment income 10.35% 10.04% 8.67%/6/
Expense waiver/reimbursement/5/ 0.99% 2.03% 8.46%/6/
Supplemental Data:

Net assets, end of period (000 omitted) $8,106 $6,037 $ 83
Portfolio turnover 128% 93% 0%
</TABLE>

1 Reflects operations for the period from October 2, 1996 (date of initial
public investment) to November 30, 1996. 2 Per share information presented is
based upon the average number of shares outstanding. 3 Per share amount does not
round to $(0.01). 4 Based on net asset value, which does not reflect the sales
charge or contingent deferred sales charge, if applicable. 5 This voluntary
expense decrease is reflected in both the expense and net

investment income ratios shown above.
6 Computed on an annualized basis.

[logo of Federated]

Federated
International
High Income
Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

MARCH 31, 1999

REVISED JULY 31, 1999

A Statement of Additional Information (SAI) dated March 31, 1999, is
incorporated by reference into this prospectus. Additional information about the
Fund's investments is available in the Fund's annual and semi-annual reports to
shareholders as they become available. The annual report discusses market
conditions and investment strategies that significantly affected the Fund's
performance during its last fiscal year. To obtain the SAI, the annual report,
semi-annual report and other information without charge call your investment
professional or the Fund at 1-800-341-7400.

[logo of Federated]

Federated International High Income Fund

Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000

1-800-341-7400

www.federatedinvestors.com

Investment Company Act File No. 811-7141

Cusip 981487762
Cusip 981487754
Cusip 981487747

G01745-01 (7/99)

Federated is a registered mark
of Federated Investors, Inc.
1999 (C)Federated Investors, Inc.

PROSPECTUS

Federated World Utility Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

A mutual fund seeking total return by investing in securities issued by domestic
and foreign companies in the utilities industries.

CONTENTS

Risk/Return Summary 1
What are the Fund's Fees and Expenses? 3
What are the Fund's Investment Strategies? 4
What are the Principal Securities in Which the Fund Invests? 5
What are the Specific Risks of Investing in the Fund? 6
What do Shares Cost? 7
How is the Fund Sold? 10
How to Purchase Shares 11
How to Redeem and Exchange Shares 12
Account and Share Information 15
Who Manages the Fund? 16
Financial Information 17

MARCH 31, 1999

REVISED JULY 31, 1999

Risk/Return Summary

WHAT IS THE FUND'S INVESTMENT OBJECTIVE?

The Fund's investment objective is to provide total return. The Fund's total
return will consist of two components: (1) changes in the market value of its
portfolio securities and (2) income received from its portfolio securities. The
Fund expects that changes in the market value of its portfolio securities will
comprise the largest component of its total return. While there is no assurance
that the Fund will achieve its investment objective, it endeavors to do so by
following the strategies and policies described in this prospectus.

WHAT ARE THE FUND'S MAIN INVESTMENT STRATEGIES?

The Fund pursues its investment objective by investing at least 65% of its total
assets in securities issued by domestic and foreign companies in the utilities
sector. The Fund invests primarily, but not exclusively, in equity securities of
utility companies which are represented in the Financial Times/S&P World Utility
Index, an index of 175 global utility companies.

WHAT ARE THE MAIN RISKS OF INVESTING IN THE FUND?

All mutual funds take investment risks. Therefore, it is possible to lose money
by investing in the Fund. The primary factors that may reduce the Fund's returns
include:
. the possibility that the utilities sector may underperform other sectors or

the market as a whole;

. fluctuations in the value of equity securities in domestic and foreign
securities markets;

. fluctuations in the exchange rate between the U.S. dollar and foreign
currencies;

. prices of emerging market securities in which the Fund invests can be
significantly more volatile than prices of securities in developed countries;
and

Risk/Return Bar Chart and Table

The graphic presentation displayed here consists of a bar chart representing the
annual total returns of Class A Shares of Federated World Utility Fund as of the
calendar year-end for each of four years.

The `y' axis reflects the "% Total Return" beginning with "0%" and increasing in
increments of 5% up to 25%.

The `x' axis represents calculation periods from the earliest first full
calendar year end of the Fund's Class A Shares start of business through the
calendar year ended 1998. The light gray shaded chart features four distinct
vertical bars, each shaded in charcoal, and each visually representing by height
the total return percentages for the calendar year stated directly at its base.
The calculated total return percentage for the Fund for each calendar year is
stated directly at the top of each respective bar, for the calendar years 1995
through 1998, The percentages noted are: 23.46%, 17.64%, 21.11% and 23.69%.

The bar chart shows the variability of the Fund's Class A Shares total returns
on a yearly basis.

Within the period shown in the chart, the Fund's Class A Shares highest
quarterly return was 14.26% (quarter ended December 31, 1998). Its lowest
quarterly return was (4.54%) (quarter ended September 30, 1998).

Average Annual Total Return

Start of

Calendar Period 1 Year Performance/1/
<S> <C> <C>
Class A Shares 16.91% 15.55%
Class B Shares 17.29% 19.47%
Class C Shares 21.77% 20.00%
S&P 500 28.61% 26.73%
FTGU 36.75% 18.35%
LUFA 18.40% 15.77%
</TABLE>

1 The Fund's Class A Shares start of performance date was April 22, 1994. The
Fund's Class B and Class C Shares start of performance date was July 27,
1995.

The table shows the Fund's Class A, Class B and Class C Shares average annual
total returns (reduced to reflect applicable sales charges) compared to the
Standard and Poor's 500 Index (S&P 500), a broad-based index, the FT
Actuaries/S&P Global Utility Index (FTGU), a broad-based market index of
total return market cap-weighted index of 1,092 companies from 25 countries
and the Lipper Utility Funds Average (LUFA), an average of funds with similar
investment objectives which represents an average of the total returns
reported by all of the mutual funds designated by Lipper.

What are the Fund's Fees and Expenses?

FEES AND EXPENSES

This table describes the fees and expenses that you may pay if you buy and hold
shares of the Fund's Class A, B, or C Shares.

Shareholder Fees Class A Class B Class C
Fees Paid Directly From Your Investment
<S> <C> <C> <C>
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) 5.50% None None

Maximum Deferred Sales Charge (Load) (as a percentage of original purchase price or

redemption proceeds, as applicable) 0.00% 5.50% 1.00%

Maximum Sales Charge (Load) Imposed on Reinvested Dividends (and other Distributions)

(as a percentage of offering price) None None None

Redemption Fee (as a percentage of amount redeemed, if applicable) None None None
Exchange Fee None None None

Annual Fund Operating Expenses (Before Waivers)/1/

Expenses That are Deducted From Fund Assets (as a percentage of average net assets)

Management Fee/2/ 1.00% 1.00% 1.00%
Distribution (12b-1) Fee None 0.75% 0.75%
Shareholder Services Fee 0.25% 0.25% 0.25%
Other Expenses 1.08% 1.08% 1.08%
Total Annual Fund Operating Expenses 2.33% 3.08%/3/ 3.08%

1 Although not contractually obligated to do so, the adviser and distributor
waived certain amounts. These are shown below along with the net expenses
the Fund actually paid for the fiscal year ended November 30, 1998.

Waivers of Fund Expenses 0.81% 0.81% 0.81%
Total Actual Annual Fund Operating Expenses (after waivers) 1.52% 2.27% 2.27%
2 The adviser voluntarily waived a portion of the management fee. The adviser
can terminate this voluntary waiver at any time. The management fee paid by
the Fund (after the voluntary waiver) was 0.19% for the year ended November
30, 1998.

3 Class B Shares convert to Class A Shares (which pay lower ongoing expenses)
approximately eight years after purchase.

</TABLE>

EXAMPLE

The following Example is intended to help you compare the cost of investing in
the Fund's Class A Shares, Class B Shares and Class C Shares with the cost of
investing in other mutual funds.

Expenses assuming

no redemption $773 $1,237 $1,727 $3,069

Class B
Expenses assuming

redemption $861 $1,351 $1,816 $3,219

Expenses assuming

no redemption $311 $ 951 $1,616 $3,219

Class C
Expenses assuming

redemption $411 $ 951 $1,616 $3,392

Expenses assuming

no redemption $311 $ 951 $1,616 $3,392

</TABLE>

What are the Fund's Investment Strategies?

The Fund pursues its investment objective by investing at least 65% of its total
assets in securities issued by domestic and foreign companies in the utilities
sector. The Fund invests primarily in equity securities of utility companies
which are represented in the Financial Times/S&P World Utility Index (Index), an
index of 175 global utility stocks, including stocks issued by companies located
in emerging market countries.

The adviser uses a quantitative process to rate the future performance
potential of the 175 utility companies in the Index as well as utility companies
not represented in the Index. The adviser evaluates each company's earnings
relative to its current valuation to narrow the list of attractive companies.
The adviser then evaluates product positioning, management quality, earnings
diversification, dividend yield and sustainability of current growth trends of
these companies. In implementing this strategy, the adviser will invest in
emerging market countries. Using this type of fundamental analysis, the adviser
selects the most promising companies for the Fund's portfolio.

INDUSTRY CONCENTRATION

The Fund may invest 25% or more of its assets in securities of issuers in the
utilities industry.

PORTFOLIO TURNOVER

TEMPORARY DEFENSIVE INVESTMENTS

What are the Principal Securities in Which the Fund Invests?

EQUITY SECURITIES

Common Stocks

Foreign Securities

another country;

. the principal trading market for its securities is in another country; or
. it (or its subsidiaries) derived in its most current fiscal year at least

50% of its total assets, capitalization, gross revenue or profit from goods
produced, services performed, or sales made in another country.

Foreign securities are often denominated in foreign currencies. Foreign
securities are subject currency risks and risks of foreign investing.

Foreign Exchange Contracts

What are the Specific Risks of Investing in the Fund?

STOCK MARKET RISKS

CURRENCY RISKS

RISKS OF INVESTING IN UTILITY SECURITIES

Utility securities pose certain risks to investors. For instance, technological
innovations may cause existing plants, equipment or products to become less
competitive or obsolete. Energy conservation and environmental concerns may
reduce demand for services of utility companies or may impede planned growth by
such companies. Utilities which own nuclear facilities may be susceptible to
environmental and regulatory issues that could cause litigation or result in
fines being levied against the company. In addition, most utility companies in
the United States and in foreign countries are subject to government regulation
which seeks to ensure desirable levels of service and adequate capacity to meet
public demand. To this end, prices are often regulated to enable consumers to
obtain service at what is perceived to be a fair price, while attempting to
provide utility companies with a rate of return sufficient to attract capital
investment necessary for continued operation and necessary growth. Utility
companies may, therefore, be adversely affected by shifts in regulatory
policies, the adequacy of rate increases, and future regulatory initiatives.

SECTOR RISKS

Sector risk is the possibility that a certain sector may underperform other
sectors or the market as a whole. Because the Fund concentrates its investments
in utility companies, the Fund's performance will be more susceptible to any
economic, business or other developments which generally affect that sector. For
example, a global increase in the cost of natural resources used by utility
companies would reduce the value of utility companies more than companies in
other business sectors. This would cause the Fund to underperform other mutual
funds that do not concentrate in the utility sector.

RISKS OF FOREIGN INVESTING

EMERGING MARKET RISKS

The Adviser is seeking information regarding the Year 2000 readiness of
countries, issuers, and Fund service providers located in emerging markets. The
year 2000 problem is the potential for computer errors or failures because
certain computer systems may be unable to interpret dates after December 31,
1999, or experience other date-related problems. However, this information may
be incomplete, inaccurate or difficult to obtain. As a result, the Adviser might
not be able to assess accurately the potential effects of the Year 2000 problem
on these countries and companies, and these problems could result in material
losses to the Fund. What do Shares Cost?

Minimum Maximum Sales Charge
Initial/ Contingent
Subsequent Front-End Deferred
Investment Sales Sales

Shares Offered Amounts/1/ Charge/2/ Charge/3/
<S> <C> <C> <C>
Class A $1,500/$100 5.50% 0.00%
Class B $1,500/$100 None 5.50%
Class C $1,500/$100 None 1.00%

</TABLE>

Orders for $250,000 or more will be invested in Class A Shares instead of
Class B Shares to maximize your return and minimize the sales charges and
marketing fees. Accounts held in the name of an investment professional may
be treated differently. Class B Shares will automatically convert into Class
A Shares after eight full years from the purchase date. This conversion is a
non-taxable event.

2 Front-End Sales Charge is expressed as a percentage of public offering
price. See "Sales Charge When You Purchase."

3 See "Sales Charge When You Redeem."

SALES CHARGE WHEN YOU PURCHASE

Class A Shares

Sales Charge

as a Percentage Sales Charge
of Public as a Percentage

Purchase Amount Offering Price of NAV
<S> <C> <C>
Less than $50,000 5.50% 5.82%
$50,000 but less than
$100,000 4.50% 4.71%

$100,000 but less than

$250,000 3.75% 3.90%

$250,000 but less than

$500,000 2.50% 2.56%

$500,000 but less than

$1 million 2.00% 2.04%

$1 million or greater/1/ 0.00% 0.00%
</TABLE>

The sales charge at purchase may be reduced or eliminated by:
. purchasing Shares in greater quantities to reduce the applicable sales

charge;

. combining concurrent purchases of Shares:
- by you, your spouse, and your children under age 21; or
- of the same share class of two or more Federated Funds (other than money

market funds);

. accumulating purchases (in calculating the sales charge on an additional
purchase, include the current value of previous Share purchases still
invested in the Fund); or

. signing a letter of intent to purchase a specific dollar amount of Shares
within 13 months (call your investment professional or the Fund for more
information).

(other than a money market fund);

. through wrap accounts or other investment programs where you pay the
investment professional directly for services;

. through investment professionals that receive no portion of the sales charge;
. as a Federated Life Member (Class A Shares only) and their immediate family

members; or

. as a Director or employee of the Fund, the Adviser, the Distributor and their
affiliates, and the immediate family members of these individuals.

SALES CHARGE WHEN YOU REDEEM

Your redemption proceeds may be reduced by a sales charge, commonly referred to
as a contingent deferred sales charge (CDSC).

Class A Shares

<S> <C> A CDSC of 0.75% of the redemption amount applies to Class A Shares
redeemed up to 24 months after purchase under certain investment programs where
an investment professional received an advance payment on the transaction.

Class B Shares

Shares Held Up To: CDSC
1 Year 5.50%
2 Years 4.75%
3 Years 4.00%
4 Years 3.00%
5 Years 2.00%
6 Years 1.00%
7 Years or More 0.00%

Class C Shares

You will pay a 1% CDSC if you redeem Shares within one year of the purchase
date.

</TABLE>

You will not be charged a CDSC when redeeming Shares:
. purchased with reinvested dividends or capital gains;

. purchased within 120 days of redeeming Shares of an equal or lesser amount;
. that you exchanged into the same share class of another Federated Fund where

the shares were held for the applicable CDSC holding period (other than a
money market fund);

. purchased through investment professionals who did not receive advanced
sales payments; or

. if after you purchase Shares, you become disabled as defined by the IRS.
In addition, you will not be charged a CDSC:
. if the Fund redeems your Shares and closes your account for not meeting the

minimum balance requirement;

. if your redemption is a required retirement plan distribution;
. upon the death of the last surviving shareholder of the account.

To keep the sales charge as low as possible, the Fund redeems your Shares in
this order:

. Shares that are not subject to a CDSC; and

. Shares held the longest (to determine the number of years your Shares have
been held, include the time you held shares of other Federated Funds that
have been exchanged for Shares of this Fund).

The CDSC is then calculated using the share price at the time of purchase or
redemption, whichever is lower.

How is the Fund Sold?

The Fund offers three share classes: Class A Shares, Class B Shares, and Class C
Shares, each representing interests in a single portfolio of securities.

RULE 12B-1 PLAN

How to Purchase Shares

THROUGH AN INVESTMENT PROFESSIONAL

Investment professionals should send payments according to the instructions in
the sections "By Wire" or "By Check."

DIRECTLY FROM THE FUND

. Establish your account with the Fund by submitting a completed New Account

Form; and

. Send your payment to the Fund by Federal Reserve wire or check.

An institution may establish an account and place an order by calling the Fund
and the Shares will be priced at the next calculated NAV after the Fund receives
the order.

By Wire Send your wire to:

State Street Bank and Trust Company
Boston, MA
Dollar Amount of Wire

ABA Number 011000028
Attention: EDGEWIRE

Wire Order Number, Dealer Number,
or Group Number
Nominee/Institution Name
Fund Name and Number and Account Number

You cannot purchase Shares by wire on holidays when wire transfers are
restricted.

By Check

Make your check payable to The Federated Funds, note your account number on the
check, and mail it to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

If you send your check by a private courier or overnight delivery service that
requires a street address, mail it to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317

Payment should be made in U.S. dollars and drawn on a U.S. bank. The Fund will
not accept third- party checks (checks originally payable to someone other than
you or The Federated Funds).

THROUGH AN EXCHANGE

BY SYSTEMATIC INVESTMENT PROGRAM

BY AUTOMATED CLEARINGHOUSE (ACH)

RETIREMENT INVESTMENTS

How to Redeem and Exchange Shares

You should redeem or exchange Shares:

. through an investment professional if you purchased Shares through an
investment professional; or

. directly from the Fund if you purchased Shares directly from the Fund.

THROUGH AN INVESTMENT PROFESSIONAL

DIRECTLY FROM THE FUND

By Telephone

By Mail

You may redeem or exchange Shares by mailing a written request to the Fund. You
will receive a redemption amount based on the next calculated NAV after

the Fund receives your written request in proper form.
Send requests by mail to:

Federated Shareholder Services Company
P.O. Box 8600

Boston, MA 02266-8600

Send requests by private courier or overnight delivery service to:

Federated Shareholder Services Company
1099 Hingham Street

Rockland, MA 02370-3317 All requests must include:

. Fund Name and Share Class, account number and account registration;
. amount to be redeemed or exchanged;
. signatures of all shareholders exactly as registered; and
. if exchanging, the Fund Name and Share Class, account number and account
registration into which you are exchanging.
Call your investment professional or the Fund if you need special instructions.

Signature Guarantees Signatures must be guaranteed if:

. your redemption will be sent to an address other than the address of record;
. your redemption will be sent to an address of record that was changed within

the last 30 days;

. a redemption is payable to someone other than the shareholder(s) of record;

. if exchanging (transferring) into another fund with a different shareholder
registration.

PAYMENT METHODS FOR REDEMPTIONS

. an electronic transfer to your account at a financial institution that is an
ACH member; or

. wire payment to your account at a domestic commercial bank that is a Federal
Reserve System member.

Redemption in Kind

Although the Fund intends to pay Share redemptions in cash, it reserves the
right to pay the redemption price in whole or in part by a distribution of the
Fund's portfolio securities.

LIMITATIONS ON REDEMPTION PROCEEDS

Redemption proceeds normally are wired or mailed within one business day after
receiving a request in proper form. Payment may be delayed up to seven days:

. to allow your purchase to clear;
. during periods of market volatility; or

. when a shareholder's trade activity or amount adversely impacts the Fund's
ability to manage its assets.

You will not accrue interest or dividends on uncashed checks from the Fund if
those checks are undeliverable and returned to the Fund.

REDEMPTIONS FROM RETIREMENT ACCOUNTS

EXCHANGE PRIVILEGES

SYSTEMATIC WITHDRAWAL/ EXCHANGE PROGRAM

. your account has at least a $10,000 balance when you establish the SWP. (You
cannot aggregate multiple Class B Share accounts to meet this minimum
balance).

For SWP accounts established prior to April 1, 1999, your account must be at
least one year old in order to be eligible for the waiver of the CDSC.

ADDITIONAL CONDITIONS

Telephone Transactions

The Fund will record your telephone instructions. If the Fund does not follow
reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent telephone instructions.

Share Certificates

Account and Share Information

CONFIRMATIONS AND ACCOUNT STATEMENTS

DIVIDENDS AND CAPITAL GAINS

ACCOUNTS WITH LOW BALANCES

TAX INFORMATION

Fund distributions are expected to be both dividends and capital gains.
Redemptions and exchanges are taxable sales. Please consult your tax adviser
regarding your federal, state, and local tax liability.

Who Manages the Fund?

York, NY 10038-4965.

THE FUND'S PORTFOLIO MANAGERS ARE:

Richard J. Lazarchic

Richard J. Lazarchic has been a portfolio manager of the Fund since March 1998.
Mr. Lazarchic joined Federated Investors in 1998 as a Portfolio Manager and Vice
President of the Fund's Adviser. From May 1979 through October 1997, Mr.
Lazarchic was employed with American Express Financial Corp., initially as an
Analyst and then as a Vice President/ Senior Portfolio Manager. Mr. Lazarchic is
a Chartered Financial Analyst. He received his M.B.A. from Kent State
University.

Drew J. Collins

Drew J. Collins has been a member of the Fund's portfolio management team since
its inception. He is Vice President of the Corporation. Mr. Collins joined
Federated Investors in 1995 as a Senior Portfolio Manager and a Senior Vice
President of the Fund's Adviser. Mr. Collins served as Vice President/Portfolio
Manager of international equity portfolios at Arnhold and Bleichroeder, Inc.
from 1994 to 1995. He served as an Assistant Vice President/Portfolio Manager
for international equities at the College Retirement Equities Fund from 1986 to
1994. Mr. Collins is a Chartered Financial Analyst and received his M.B.A. in
finance from the Wharton School of The University of Pennsylvania.

Richard Winkowski

Richard Winkowski is a Senior Investment Analyst who assists the portfolio
managers in selecting and monitoring the securities in which the Fund invests.
Mr. Winkowski joined Federated Investors in April 1998; he served as a Senior
Research Analyst with Union Bank of Switzerland from October 1997 through March
1998. He was employed with American Express Financial Corp. as a Statistical
Analyst from April 1994 to January 1995 and then as a Portfolio Manager
Assistant until September 1997. Mr. Winkowski earned his B.A. from the
University of Wisconsin.

Peter Thoms

Peter Thoms is an Investment Analyst who assists the portfolio managers in
selecting and monitoring the securities in which the Fund invests. Mr. Thoms
joined Federated Investors in July 1998. From 1993 through mid-1996, Mr. Thoms
was a free-lance travel writer. He completed his M.B.A. at the University of
Virginia in May 1998.

ADVISORY FEES

The Adviser receives an annual investment advisory fee of 1.00% of the Fund's
average daily net assets. The Adviser may voluntarily waive a portion of its fee
or reimburse the Fund for certain operating expenses.

YEAR 2000 READINESS

The financial impact of these issues for the Fund is still being determined.
There can be no assurance that potential Year 2000 problems would not have a
material adverse effect on the Fund.

Financial Information

FINANCIAL HIGHLIGHTS

This information has been audited by Ernst & Young LLP, whose report, along
with the Fund's audited financial statements, is included in the Annual Report.

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C> <C> <C> <C>
Year Ended November 30 1998 1997 1996 1995 1994/1/
Net Asset Value, Beginning of Period $ 14.16 $ 12.69 $ 10.96 $ 9.67 $10.06
Income From Investment Operations:

Net investment income 0.23 0.28 0.43 0.42 0.24
Net realized and unrealized gain (loss) on 2.55 2.00 1.67 1.27 (0.46)
investments and foreign currency

TOTAL FROM INVESTMENT OPERATIONS 2.78 2.28 2.10 1.69 (0.22)
Less Distributions:
Distributions from net investment income (0.26) (0.38) (0.37) (0.40) (0.17)
Distributions from net realized gain on
investments and foreign currency transactions (0.44) (0.43) -- -- --
TOTAL DISTRIBUTIONS (0.70) (0.81) (0.37) (0.40) (0.17)
Net Asset Value, End of Period $ 16.24 $ 14.16 $ 12.69 $10.96 $ 9.67
Total Return/2/ 20.42% 19.08% 19.54% 17.94% (3.00%)

Ratios to Average Net Assets:

Expenses 1.52% 1.40% 1.05% 0.25% 0.25%/4/
Net investment income 1.71% 2.16% 3.87% 4.39% 5.10%/4/
Expense waiver/reimbursement/3/ 0.81% 1.49% 3.11% 4.78% 4.43%/4/
Supplemental Data:

Net assets, end of period (000 omitted) $28,022 $20,394 $12,671 $8,875 $4,948
Portfolio turnover 139% 52% 50% 46% 7%
</TABLE>

1 Reflects operations for the period from April 22, 1994 (date of initial
public investment) to November 30, 1994. For the period from the start of
business, March 17, 1994, to April 21, 1994, Class A had no public
investment.

2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

3 For the periods ended November 30, 1995 and 1994, the adviser waived all of
its investment advisory fee, 1.00% and 1.00%, respectively, and reimbursed
other operating expenses, 0.34% and 0.86%, respectively, to comply with
certain state expense limitations. The remainder of the reimbursement was
voluntary. This expense decrease is reflected in both the expenses and net
investment income ratios shown above.

4 Computed on an annualized basis.

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C> <C> <C>
Year Ended November 30 1998 1997 1996 1995/1/
Net Asset Value, Beginning of Period $ 14.12 $ 12.68 $10.95 $10.53
Income From Investment Operations:

Net investment income 0.12 0.21 0.35 0.11
Net realized and unrealized gain on investments and 2.54 1.95 1.67 0.41
foreign currency
TOTAL FROM INVESTMENT OPERATIONS 2.66 2.16 2.02 0.52
Less Distributions:
Distributions from net investment income (0.15) (0.29) (0.29) (0.10)
Distributions from net realized gain on investments and

foreign currency transactions (0.44) (0.43) -- --
TOTAL DISTRIBUTIONS (0.59) (0.72) (0.29) (0.10)
Net Asset Value, End of Period $ 16.19 $ 14.12 $12.68 $10.95
Total Return/2/ 19.53% 18.04% 18.79% 5.00%

Ratios to Average Net Assets:

Expenses 2.27% 2.15% 1.80% 1.00%/4/
Net investment income 0.96% 1.36% 3.18% 2.99%/4/
Expense waiver/reimbursement/3/ 0.81% 1.49% 3.11% 4.78%/4/
Supplemental Data:

Net assets, end of period (000 omitted) $22,793 $15,177 $4,091 $1,068
Portfolio turnover 139% 52% 50% 46%
</TABLE>

1 Reflects operations for the period from July 27, 1995 (date of initial public
investment) to November 30, 1995.

2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

3 For the periods ended November 30, 1995, the adviser waived all of its
investment advisory fee, 1.00%, and reimbursed other operating expenses,
0.34%, to comply with certain state expense limitations. The remainder of the
reimbursement was voluntary. This expense decrease is reflected in both the
expenses and net investment income ratios shown above.

4 Computed on an annualized basis.

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>

<S> <C> <C> <C> <C>
Year Ended November 30 1998 1997 1996 1995/1/
Net Asset Value, Beginning of Period $14.14 $12.67 $10.95 $10.53
Income From Investment Operations:

Net investment income 0.12 0.19 0.33 0.15
Net realized and unrealized gain on investments and foreign 2.54 2.00 1.68 0.37
currency

TOTAL FROM INVESTMENT OPERATIONS 2.66 2.19 2.01 0.52
Less Distributions:
Distributions from net investment income (0.15) (0.29) (0.29) (0.10)
Distributions from net realized gain on investments and

foreign currency transactions (0.44) (0.43) -- --
TOTAL DISTRIBUTIONS (0.59) (0.72) (0.29) (0.10)
Net Asset Value, End of Period $16.21 $14.14 $12.67 $10.95
Total Return/2/ 19.50% 18.24% 18.61% 4.92%

Ratios to Average Net Assets:

Expenses 2.27% 2.15% 1.80% 1.00%/4/
Net investment income 0.96% 1.39% 3.17% 3.03%/4/
Expense waiver/reimbursement/3/ 0.81% 1.49% 3.11% 4.77%/4/
Supplemental Data:

Net assets, end of period (000 omitted) $3,276 $1,923 $1,072 $ 374
Portfolio turnover 139% 52% 50% 46%
</TABLE>

1 Reflects operations for the period from July 27, 1995 (date of initial public
investment) to November 30, 1995.

2 Based on net asset value, which does not reflect the sales charge or
contingent deferred sales charge, if applicable.

4 Computed on an annualized basis.

[logo of Federated]

Federated World Utility Fund

A Portfolio of World Investment Series, Inc.

CLASS A SHARES
CLASS B SHARES
CLASS C SHARES

MARCH 31, 1999

REVISED JULY 31, 1999

[logo of Federated]

Federated World Utility Fund

Federated Investors Funds

5800 Corporate Drive

Pittsburgh, PA 15237-7000

1-800-341-7400

www.federatedinvestors.com

Investment Company Act File No. 811-7141

Cusip 981487762

Cusip 981487754

Cusip 981487747

G00440-03 (7/99)

Federated is a registered mark

of Federated Investors, Inc.

1999 (C)Federated Investors, Inc.