WORLD INVESTMENT SERIES, INC. FEDERATED ASIA PACIFIC GROWTH FUND FEDERATED
EMERGING MARKETS FUND FEDERATED EUROPEAN GROWTH FUND FEDERATED GLOBAL EQUITY
INCOME FUND FEDERATED GLOBAL FINANCIAL SERVICES FUND FEDERATED INTERNATIONAL
GROWTH FUND FEDERATED INTERNATIONAL HIGH INCOME FUND FEDERATED INTERNATIONAL
SMALL COMPANY FUND FEDERATED LATIN AMERICAN GROWTH FUND FEDERATED WORLD UTILITY
FUND
SUPPLEMENT TO PROSPECTUSES DATED MARCH 31, 1999
I. At a special meeting of shareholders to be held on November 18, 1999,
shareholders of the above-named Funds will be asked to vote on the
changes described below. If approved by shareholders, these changes
will take effect on or after December 1, 1999. Shareholders will be
notified if any of these changes are not approved at the special
meeting or any adjournment thereof. Please keep this supplement for
your records.
Shareholders will be asked to consider the following proposals:
(1) To elect seven Directors.
(2) To make changes to the fundamental investment policies of each
Fund (except as otherwise noted):
(a)To amend the Funds' fundamental investment policies regarding
diversification to read as follows (for each Fund EXCEPT
Federated Global Equity Income Fund, Federated Global
Financial Services Fund and Federated International Growth
Fund):
"With respect to securities comprising 75% of the value of its
total assets, the Fund will not purchase securities of any one
issuer (other than cash; cash items; securities issued or
guaranteed by the government of the United States or its
agencies or instrumentalities and repurchase agreements
collateralized by such U.S. government securities; and
securities of other investment companies) if, as a result,
more than 5% of the value of its total assets would be
invested in the securities of that issuer, or the Fund would
own more than 10% of the outstanding voting securities of that
issuer."
(b) To amend the Funds' fundamental investment policies regarding
borrowing money and issuing senior securities to read as follows:
"The Fund may borrow money, directly or indirectly, and issue
senior securities to the maximum extent permitted under the 1940 Act."
(c) To amend the Funds' fundamental investment policies regarding
investments in real estate to read as follows:
"The Fund may not purchase or sell real estate, provided that
this restriction does not prevent the Fund from investing in
issuers which invest, deal, or otherwise engage in
transactions in real estate or interests therein, or investing
in securities that are secured by real estate or interests
therein. The Fund may exercise its rights under agreements
relating to such securities, including the right to enforce
security interests and to hold real estate acquired by reason
of such enforcement until that real estate can be liquidated
in an orderly manner."
(d) To amend the Funds' fundamental investment policies regarding
investments in commodities to read as follows:
"The Fund may not purchase or sell physical commodities,
provided that the Fund may purchase securities of companies that deal in
commodities."
(e) To amend the Funds' fundamental investment policies regarding
underwriting securities to read as follows:
"The Fund may not underwrite the securities of other issuers,
except that the Fund may engage in transactions involving the
acquisition, disposition or resale of its portfolio
securities, under circumstances where it may be considered to
be an underwriter under the Securities Act of 1933."
(f) To amend the Funds' fundamental investment policies regarding
lending by the Funds to read as follows:
"The Fund may not make loans, provided that this restriction
does not prevent the Fund from purchasing debt obligations,
entering into repurchase agreements, lending its assets to
broker/dealers or institutional investors and investing in
loans, including assignments and participation interests."
(g)To amend the Funds' fundamental investment policies regarding
concentration of the Funds' investments in the securities of
companies in the same industry to read as follows:
For all Funds EXCEPT Federated Global Financial Services Fund,
Federated International Growth Fund and Federated World Utility Fund:
"The Fund will not make investments that will result in the
concentration of its investments in the securities of issuers
primarily engaged in the same industry. Government securities,
municipal securities and bank instruments will not be deemed
to constitute an industry."
For Federated Global Financial Services Fund:
"The Fund will not make investments that will result in the
concentration of its investments in the securities of issuers
primarily engaged in the same industry, provided that the Fund
may concentrate its investments in issuers in the financial
services industry. Government securities, municipal securities
and bank instruments will not be deemed to constitute an
industry."
For Federated International Growth Fund:
"The Fund will not make investments that will result in the
concentration of its investments in the securities of issuers
primarily engaged in the same industry, provided that the Fund
may concentrate its investments in investment company
securities. Government securities, municipal securities and
bank instruments will not be deemed to constitute an
industry."
For Federated World Utility Fund:
"The Fund will not make investments that will result in the
concentration of its investments in the securities of issuers
primarily engaged in the same industry, provided that the Fund
may concentrate its investments in issuers in the utilities
industry. Government securities, municipal securities and bank
instruments will not be deemed to constitute an industry."
(h) To amend, and to make non-fundamental, the Funds' fundamental
investment policies regarding buying securities on margin to read as follows:
"The Fund will not purchase securities on margin, provided
that the Fund may obtain short-term credits necessary for the
clearance of purchases and sales of securities, and further
provided that the Fund may make margin deposits in connection
with its use of financial options and futures, forward and
spot currency contracts, swap transactions and other financial
contracts or derivative instruments."
(i) To amend, and to make non-fundamental, the Funds' fundamental
investment policies regarding pledging assets to read as follows:
"The Fund will not mortgage, pledge, or hypothecate any of its
assets, provided that this shall not apply to the transfer of
securities in connection with any permissible borrowing or to
collateral arrangements in connection with permissible
activities."
(3) To eliminate the Funds' fundamental investment policies regarding
selling securities short (for each Fund EXCEPT Federated World
Utility Fund).
(4) To approve an amendment to the Articles of Incorporation of World
Investment Series, Inc. to permit the Board of Directors to
liquidate assets of a series or class without seeking shareholder
approval to the extent permitted under Maryland law.
II. The following actions have been taken by the Board of Directors with
regard to certain non-fundamental investment policies and limitations of the
Funds:
(1) Approved the elimination of the following non-fundamental investment
limitations of the Funds:
(a) Removed the policies on purchasing put options (for each Fund
EXCEPT Federated World Utility Fund);
(b) Removed the policies on writing call options; and
(c) Removed the policies on investing for control or management.
(2) Approved revisions to the Funds' non-fundamental investment policies
regarding investments in illiquid securities to read as follows:
"The Fund will not purchase securities for which there is no
readily available market, or enter into repurchase agreements or
purchase time deposits maturing in more than seven days, if
immediately after and as a result, the value of such securities
would exceed, in the aggregate, 15% of the Fund's net assets."
(3) Approved the elimination of the following undertakings for the
Funds:
All Funds EXCEPT Federated World Utility Fund:
"The Fund has no present intent to borrow money, pledge
securities, or invest in reverse repurchase agreements in excess
of 5% of the value of its total assets in the coming fiscal year.
In addition, the Fund expects to lend not more than 5% of its
total assets in the coming fiscal year."
Federated World Utility Fund:
"The Fund does not intend to borrow money, pledge securities, or invest in
securities of other investment companies in excess of 5% of the value of its
total assets in the coming fiscal year."
(4) Approved the adoption of the following non-fundamental investment
limitations pertaining to concentration for the Funds:
For all Funds EXCEPT Federated Global Financial Services Fund and
Federated World Utility Fund:
"(a) utility companies will be divided according to their
services (for example, gas, gas transmission, electric and
telephone will be considered a separate industry); (b) financial
service companies will be classified according to the end users
of their services (for example, automobile finance, bank finance
and diversified finance will each be considered a separate
industry); and (c) asset-backed securities will be classified
according to the underlying assets securing such securities. To
conform to the current view of the SEC staff that only domestic
bank instruments may be excluded from industry concentration
limitations, as a matter of non-fundamental policy, the Fund will
not exclude foreign bank instruments from industry concentration
limitation tests so long as the policy of the SEC remains in
effect. In addition, investments in bank instruments, and
investments in certain industrial development bonds funded by
activities in a single industry, will be deemed to constitute
investment in an industry, except when held for temporary
defensive purposes. The investment of more than 25% of the value
of the Fund's total assets in any one industry will constitute
`concentration.'"
For Federated Global Financial Services Fund:
"(a) utility companies will be divided according to their
services (for example, gas, gas transmission, electric and
telephone will be considered a separate industry); and (b)
asset-backed securities will be classified according to the
underlying assets securing such securities. To conform to the
current view of the SEC staff that only domestic bank instruments
may be excluded from industry concentration limitations, as a
matter of non-fundamental policy, the Fund will not exclude
foreign bank instruments from industry concentration limitation
tests so long as the policy of the SEC remains in effect. In
addition, investments in bank instruments, and investments in
certain industrial development bonds funded by activities in a
single industry, will be deemed to constitute investment in an
industry, except when held for temporary defensive purposes. The
investment of more than 25% of the value of the Fund's total
assets in any one industry will constitute `concentration.'"
For Federated World Utility Fund:
"(a) financial service companies will be classified according to
the end users of their services (for example, automobile finance,
bank finance and diversified finance will each be considered a
separate industry); and (b) asset-backed securities will be
classified according to the underlying assets securing such
securities. To conform to the current view of the SEC staff that
only domestic bank instruments may be excluded from industry
concentration limitations, as a matter of non-fundamental policy,
the Fund will not exclude foreign bank instruments from industry
concentration limitation tests so long as the policy of the SEC
remains in effect. In addition, investments in bank instruments,
and investments in certain industrial development bonds funded by
activities in a single industry, will be deemed to constitute
investment in an industry, except when held for temporary
defensive purposes. The investment of more than 25% of the value
of the Fund's total assets in any one industry will constitute
`concentration.'"
(5) Approved the addition of the following non-fundamental
investment limitation for each Fund when applying its commodities
restriction:
"As a matter of non-fundamental operating policy, for purposes of
the commodities policy, investments in transactions involving
futures contracts and options, forward currency contracts, swap
transactions and other financial contracts that settle by payment
of cash are not deemed to be investments in commodities."
(6) Approved the restatement of the Funds' diversification policies
to read as follows (for Federated Global Equity Income Fund,
Federated Global Financial Services Fund and Federated
International Growth Fund ONLY):
"With respect to securities comprising 75% of the value of its
total assets, the Fund will not purchase securities of any one
issuer (other than cash; cash items; securities issued or
guaranteed by the government of the United States or its agencies
or instrumentalities and repurchase agreements collateralized by
such U.S. government securities; and securities of other
investment companies) if, as a result, more than 5% of the value
of its total assets would be invested in the securities of that
issuer, or the Fund would own more than 10% of the outstanding
voting securities of that issuer."
<PAGE>
September 24, 1999
Federated Investors
Federated Securities Corp., Distributor
Federated Investors, Inc.
Federated Investors Tower
1001 Liberty Avenue
Pittsburgh, PA 15222-3779
Cusip 981487507 Cusip 981487739
Cusip 981487606 Cusip 981487721
Cusip 981487705 Cusip 981487713
Cusip 981487804 Cusip 981487762
Cusip 981487887 Cusip 981487754
Cusip 981487879 Cusip 981487747
Cusip 981487861 Cusip 981487838
Cusip 981487853 Cusip 981487820
Cusip 981487846 Cusip 981487812
Cusip 981487697 Cusip 981487796
Cusip 981487689 Cusip 981487788
Cusip 981487671 Cusip 981487770
Cusip 981487663 Cusip 981487101
Cusip 981487655 Cusip 981487309
Cusip 981487648 Cusip 981487408
