FEDERATED WORLD INVESTMENT SERIES INC, N-30D, 2000-07-31

FEDERATED WORLD INVESTMENT SERIES INC
N-30D, 2000-07-31

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Federated Investors
World-Class Investment Manager

Richard B. Fisher

President

Federated Asia Pacific Growth Fund

President's Message

Dear Fellow Shareholder:

Federated Asia Pacific Growth Fund was created in 1996, and I am pleased to present its fourth Semi-Annual Report. As of May 31, 2000, the fund's net assets totaled $52.2 million with 49% of the fund's holdings in Japan. This stock fund provides investors with significant long-term opportunities from an extremely well-researched portfolio of more than 90 corporations across 12 Asian and Pacific Rim countries. The stocks selected, in many cases, are internationally recognized industry leaders with a median market capitalization of over $2 billion.

This report covers the first half of the fund's fiscal year, which is the six-month reporting period from December 1, 1999 through May 31, 2000. It begins with an interview with the fund's portfolio manager, Alexandre de Bethmann, Vice President of Federated Global Investment Management Corp. Following his discussion, which covers international market conditions and fund strategy, are two additional items of shareholder interest. First is a complete listing of the fund's investments, and second is the publication of the fund's financial statements.

The last six months proved to be volatile for the world's markets, including the Asian Pacific region. However, the fund's management team sees many signs of a continued recovery. While there will inevitably be periods of difficulty, we believe that the rewards go to the patient investor in such strong corporations such as: NEC, Samsung Electronics, Sony, and SK Telecom.¹

1 International investing involves special risks including currency risk, increased volatility of foreign securities, and differences in auditing and other financial standards. Funds that invest a significant portion of their assets in a particular geographic region may be subject to greater currency risk and more susceptible to adverse impact from actions of foreign governments.

Individual share class total return performance for the six-month reporting period, including realized gains, is as follows:²

	Total Return	Net Asset Value Change
Class A Shares	(17.60%)	$13.58 to $11.19 = (17.60%)
Class B Shares	(17.98%)	$13.24 to $10.86 = (17.98%)
Class C Shares	(18.00%)	$13.28 to $10.89 = (18.00%)

I recommend that you add to your account on a regular basis to take advantage of price fluctuations and to use the dollar-cost averaging method of investing. By investing the same amount on a regular basis, you can buy more fund shares when prices are low, and fewer when prices are high.³

As we continue to emerge from a volatile period, I thank you for the patience you have shown as a shareholder of Federated Asia Pacific Growth Fund. The fund's strong performance of 1999 would be difficult to repeat in 2000, however, over the long-term, the average annual return of the fund has been positive. Also, with over half of the world's population in India and mainland China, we are very optimistic about the potential for export opportunities for the Pacific Rim countries.

Sincerely,

Richard B. Fisher

Richard B. Fisher
President
July 15, 2000

2 Performance quoted is based on net asset value, represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on offering price (i.e., less any applicable sales charge), for Class A, B and C Shares were (22.13%), (22.49%) and (18.82%), respectively.

3 Dollar-cost averaging does not ensure a profit or protect against loss in declining markets. Since such a plan of investing involves continuous investing regardless of fluctuating price levels, investors should consider whether to continue to invest in periods of low price levels.

Alexandre de Bethmann

Vice President

Federated Global Investment Management Corp.

Investment Review

What are your comments on the first half of the fund's fiscal year and the state of the Asian economy?

The fund's performance, which in 1999 benefited handsomely from its technology exposure, so far this year has been hurt by the same allocation. We are still bullish on technology, however, we have since consolidated a number of our positions.

Regarding the state of the Asian economy, we believe that the recovery for the region is well on track. Specifically, we have seen the Japanese recovery led so far by public spending with consumption still lagging. We expect consumption to pick-up modestly over the next 12 months. Slow, ongoing corporate restructuring in Japan moving forward creates further upside to the outlook.

Economies in Hong Kong and Singapore continue to lag in the overall region's recovery, though exports have been strongly fueled by growth in the United States.

On a purely growth basis, Korea has been accelerating forward. This economic growth, however, has been tempered by concerns over the Chaebol economy and investment trust restructuring.

Growth in Taiwan has been driven by electronic exports, and China continues to show a 7% growth, while World Trade Organization's acceptance further strengthened the country's prospects.

Finally, countries like Thailand, Malaysia and Indonesia continue to have significant systematic risk factors which limit growth, in our view.

How did Federated Asia Pacific Growth Fund perform?

The six-month total return for Class A Shares was (17.60)% based on net asset value. The total returns for Class B Shares and Class C Shares based on net asset value were (17.98%) and (18.00%), respectively.¹ The fund's returns underperformed the (8.76%) average total return of 50 Pacific Region funds tracked by Lipper Analytical Services² and were also below the (5.61%) total return of the fund's benchmark, the Morgan Stanley Capital International Combined Asia Pacific Index.³ The technology sector's growth, though strong in 1999, just did not continue in the Pacific Rim countries following the sell-off in the U.S. technology sector.

What is your current strategy?

We will continue to identify attractively priced companies with solid financial positions, improving market shares and good earnings growth, such as SK Telecom, Sony, Samsung Electronics and ERG Ltd.

What countries were represented in the fund's portfolio as of May 31, 2000?

As of May 31, 2000, the country allocations were:

Country	Percentage of Net Assets as of May 31, 2000	Percentage of Net Assets as of Nov. 30, 1999
Japan (developed)	49.12%	59.50%
Hong Kong (developed)	7.27%	5.18%
Taiwan (emerging)	6.83%	0.23%
Korea (emerging)	6.62%	8.08%
Australia (developed)	5.03%	9.53%
United States (developed)	5.01%	5.44%
Singapore (developed)	3.87%	7.25%
India (emerging)	3.10%	5.36%
Malaysia (emerging)	2.93%	0.00%
Indonesia (emerging)	1.60%	1.76%
China (emerging)	1.52%	0.51%
Thailand (emerging)	0.00%	0.49%
Philippines (emerging)	0.00%	0.41%

1 Past performance is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on offering price (i.e., less any applicable sales charge), for Class A, B, and C Shares were (22.13%), (22.49%) and (18.82%), respectively.

2 Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper Analytical Services, Inc. as falling into the category indicated. Lipper returns do not take sales charges into account.

3 The Morgan Stanley Capital International Combined Asia Pacific Index is an unmanaged, market value-weighted average of the performance of securities listed on the stock exchange of 13 countries in the Pacific and Asian regions. Investments cannot be made in an index.

What were the fund's top ten holdings as of May 31, 2000?

The fund's top ten holdings were:

Security Name	Country	Sector	Percentage of Net Assets
NEC Corp.	Japan	Technology Hardware & Equipment	2.9%
Kyocera Corp.	Japan	Technology Hardware & Equipment	2.4%
Tokyo Electric Power Co.	Japan	Utilities	2.3%
Hirose Electric Co.	Japan	Technology Hardware & Equipment	2.1%
Shinkawa Ltd.	Japan	Technology Hardware & Equipment	2.1%
Samsung Electronics Co.	Korea	Technology Hardware & Equipment	2.0%
Sumitomo Metal Mining Co.	Japan	Materials	1.9%
Nippon Electric Glass Co., Ltd.	Japan	Capital Goods	1.8%
Taiyo Yuden Co.	Japan	Technology Hardware & Equipment	1.8%
NTT Mobile Communication Network, Inc.	Japan	Telecommunication Services	1.7%
TOTAL			21.0%

What is your current outlook for Asian Pacific markets?

We continue to see upside in the Asian Pacific markets on a select basis. Specifically, we remain optimistic on the Japanese arena given reasonable valuation levels of their equities, economic recovery potential, and continued corporate restructuring. While we remain bullish on established technology names such as NEC Corp. and Shinkawa Ltd., we believe that further rotation into old economy names is a prudent approach.

Moreover, a peaking in U.S. interest rates in the second half should help dollar-linked markets like Hong Kong perform. The potential for a recovery in the Hong Kong economy also provides upside. Short-term, we see opportunities in Taiwan, while Korea looks like a good long-term bet once visibility concerning the Chaebol economy restructuring occurs. Finally, it is important to remember that the Asian recovery, for the most part, has been export driven. A significant slowdown in the United States could dampen the region's growth prospects unless a domestic consumption recovery accelerates.

Portfolio of Investments

MAY 31, 2000 (UNAUDITED)

Shares

Value in
U.S. Dollars

COMMON STOCKS--88.3%

Automobiles & Components--2.0%

1,167,000

Brilliance China Automotive Holdings, Ltd.

182,712

102,000

Yamaha Motor Co.

866,534

TOTAL

1,049,246

Banking--2.9%

905

Australia & New Zealand Banking Group, Melbourne

6,274

45,500

Dao Heng Bank Group Ltd.

184,517

28,000

Housing & Commercial Bank, Korea

508,189

3,000,000

PT Bank Central Asia

486,957

171,000

Wing Hang Bank Ltd.

339,048

TOTAL

1,524,985

Capital Goods--15.1%

89,000

Amada Co., Ltd.

768,488

48,000

Asahi Glass Co., Ltd.

445,216

17,000

Canon Inc.

782,879

14,000

Enplas Corp.

721,415

133,800

ERG Ltd.

632,667

600,000

Flextech Holdings Ltd.

363,458

102,000

Hong Leong Industries Berhad

346,263

88,000

Makita Corp.

835,839

50,000

Nippon Electric Glass Co., Ltd.

924,748

59,000

Nippon Thompson

735,685

480,000

Renong Berhad

298,105

5,600

Sony Corp.

506,940

31,000

Tostem Corp.

510,886

TOTAL

7,872,589

Commercial Services & Supplies--0.8%

554,000

Cosco Pacific Ltd.

412,358

Kumho Electric

460

TOTAL

412,818

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Consumer Durables & Apparel--1.7%

48,000

Sharp Corp.

864,584

Diversified Financials--1.5%

18,700

Hutchison Whampoa Ltd.

215,384

29,400

ICICI Ltd., ADR

573,300

TOTAL

788,684

Energy - Oil & Gas--0.9%

55,000

Fuji Oil Co., Ltd.

469,291

Food Beverage & Tobacco--2.1%

20,200

Coca-Cola West Japan Co., Ltd.

618,913

20,000

Katokichi Co.

501,369

TOTAL

1,120,282

Hotels Restaurants & Leisure--0.6%

115,000

Tanjong PLC

323,816

Materials--3.3%

1,473,000

Shanghai Petrochemical Co., Ltd., Class H

181,473

239,000

Sumitomo Metal Mining Co.

1,009,656

138,000

Toray Industries, Inc.

525,324

TOTAL

1,716,453

Media--7.5%

539,000

BMCMedia.com Ltd.

215,438

4,980

Cheil Communications, Inc.

590,810

547,015

Isis Communications Ltd.

156,173

41,000

News Corp. Ltd.

463,748

550

Nippon TV Network, New Shares

365,628

280

Nippon TV Network

192,117

68,000

Publishing and Broadcasting Ltd.

500,881

22,100

Singapore Press Holdings Ltd.

332,772

73,500

Television Broadcasting

476,339

98,000

Toei Co.

646,024

TOTAL

3,939,930

Mining--0.5%

1,450,000

Yanzhou Coal Mining Co., Class H

256,794

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Pharmaceuticals & Biotechnology--1.1%

113,600

China Pharmaceutical Enterprise and Investment Corp., Ltd., Warrants

1,137

15,900

Ono Pharmaceutical Co., Ltd.

575,739

TOTAL

576,876

Real Estate--3.2%

740,000

Amoy Properties Ltd.

439,218

83,000

Hunet, Inc.

604,939

19,600

Meiwa Estate

616,907

TOTAL

1,661,064

Retailing--2.0%

19,400

Autobacs Seven Co.

563,781

28,500

Shimachu Co.

475,772

TOTAL

1,039,553

Services--1.0%

15,000

Focus Systems Corp.

515,296

Software & Services--3.4%

1,712

Aptech Ltd.

25,302

24,200

Daiwabo Information System Co., Ltd.

375,229

717

Handysoft Corp.

19,647

111

Jang Media Interactive Corp., Rights

1,720

10,000

NIIT Ltd.

441,984

376,200

PowerLan Ltd.

234,143

31,000

ST Assembly Test Services Ltd.

92,105

6,300

ST Assembly Test Services Ltd., ADR

194,513

111,510

Securenet Ltd.

416,352

TOTAL

1,800,995

Technology Hardware & Equipment--24.8%

22,900

Anam Semiconductor, Inc.

280,801

81,500

Chartered Semiconductor Manufacturing

775,810

575,000

GES International Ltd.

457,784

7,900

Hirose Electric

1,106,829

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Technology Hardware & Equipment--continued

11,950

Hyundai Electronics Industries Co.

186,206

7,500

Kyocera Corp.

1,245,068

50,000

Malaysian Pacific Industries

562,500

22,500

^{1, 2}

Mosel Vitelic, Inc., GDR

604,688

60,000

NEC Corp.

1,520,821

15,000

Nikon Corp.

413,630

3,855

Samsung Electronics Co.

1,051,209

23,200

Shinkawa Ltd.

1,087,786

131,839

Taiwan Semiconductor Manufacturing Co.

671,818

6,900

Taiwan Semiconductor Manufacturing Co., ADR

243,656

12,000

Taiyo Yuden Co.

911,378

284,600

United Microelectronics Corp.

863,684

213,000

Varitronix International Ltd.

367,654

19,980

^{1, 2}

Winbond Electronics Corp., GDR

603,096

TOTAL

12,954,418

Telecommunication Services--9.5%

60,000

China Telecom (Hong Kong) Ltd.

448,523

DDI Corp.

714,916

NTT Mobile Communication Network, Inc.

877,582

Nippon Telegraph & Telephone Corp.

570,447

51,800

PT Telekomunikasi Indonesia, Class CS, ADR

349,650

2,400

SK Telecom Co., Ltd.

818,061

20,200

Videsh Sanchar Nigam Ltd.

577,466

330,000

Yageo Corp.

578,384

TOTAL

4,935,029

Transportation--1.4%

432,000

New World Infrastructure

360,358

2,756,000

Zhejiang Expressway Co., Ltd.

353,685

TOTAL

714,043

Utilities--3.0%

2,420,000

Beijing Datang Power

369,572

47,000

Tokyo Electric Power Co.

1,173,855

TOTAL

1,543,427

TOTAL COMMON STOCKS (IDENTIFIED COST $45,434,354)

46,080,173

Principal
Amount

Value in
U.S. Dollars

REPURCHASE AGREEMENT--4.6%³

2,420,000

Paribas Corp., 6.58%, dated 5/31/2000, due 6/1/2000 (at amortized cost)

2,420,000

TOTAL INVESTMENTS (IDENTIFIED COST $47,854,354)⁴

48,500,173

1 Non-income producing security.

2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund's Board of Directors. At May 31, 2000, these securities amounted to $1,577,356 which represents 3.0% of net assets.

3 The repurchase agreement is fully collateralized by U.S. government and/or agency obligations based on market prices at the date of the portfolio. The investment in the repurchase agreement is through participation in a joint account with other Federated funds.

4 The cost of investments for federal tax purposes amounts to $47,854,354. The net unrealized appreciation of investments on a federal tax basis amounts to $645,819 which is comprised of $4,858,882 appreciation and $4,213,063 depreciation at May 31, 2000.

Note: The categories of investments are shown as a percentage of net assets ($52,202,580) at May 31, 2000.

The following acronyms are used throughout this portfolio:

ADR	--American Depositary Receipt
GDR	--Global Depositary Receipt

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

MAY 31, 2000 (UNAUDITED)

Assets:

Total investments in securities, at value (identified and tax cost $47,854,354)

48,500,173

Cash

9,934

Cash denominated in foreign currencies (identified cost $2,879,810)

2,854,859

Income receivable

61,538

Receivable for investments sold

1,938,119

Receivable for shares sold

408,447

Deferred organizational costs

8,365

TOTAL ASSETS

53,781,435

Liabilities:

Payable for investments purchased

1,473,884

Payable for shares redeemed

93,223

Net payable for foreign currency exchange contracts

884

Accrued expenses

10,864

TOTAL LIABILITIES

1,578,855

Net assets for 4,739,116 shares outstanding

52,202,580

Net Assets Consist of:

Paid-in capital

47,409,060

Net unrealized appreciation of investments and translation of assets and liabilities in foreign currency

654,737

Accumulated net realized gain on investments and foreign currency transactions

4,509,761

Accumulated net operating loss

(370,978

)

TOTAL NET ASSETS

52,202,580

Net Asset Value, Offering Price and Redemption Proceeds Per Share

Class A Shares:

Net Asset Value Per Share ($23,893,704 ÷ 2,134,868 shares outstanding)

$11.19

Offering Price Per Share (100/94.50 of $11.19)¹

$11.84

Redemption Proceeds Per Share

$11.19

Class B Shares:

Net Asset Value Per Share ($17,781,449 ÷ 1,637,464 shares outstanding)

$10.86

Offering Price Per Share

$10.86

Redemption Proceeds Per Share (94.50/100 of $10.86)¹

$10.26

Class C Shares:

Net Asset Value Per Share ($10,527,427 ÷ 966,784 shares outstanding)

$10.89

Offering Price Per Share

$10.89

Redemption Proceeds Per Share (99.00/100 of $10.89)¹

$10.78

1 See "What Do Shares Cost?" in Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)

Investment Income:

Dividends (net of foreign taxes withheld of $21,069)

202,388

Interest

114,562

TOTAL INCOME

316,950

Expenses:

Investment adviser fee

324,211

Administrative personnel and services fee

92,501

Custodian fees

43,636

Transfer and dividend disbursing agent fees and expenses

26,228

Directors'/Trustees' fees

442

Auditing fees

8,718

Legal fees

5,701

Portfolio accounting fees

40,277

Distribution services fee--Class B Shares

78,128

Distribution services fee--Class C Shares

48,774

Shareholder services fee--Class A Shares

31,415

Shareholder services fee--Class B Shares

26,042

Shareholder services fee--Class C Shares

16,258

Share registration costs

27,989

Printing and postage

18,691

Insurance premiums

538

Taxes

2,107

Miscellaneous

7,636

TOTAL EXPENSES

799,292

Waiver:

Waiver of investment adviser fee

(123,983

)

Net expenses

675,309

Net operating loss

(358,359

)

Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:

Net realized gain on investments and foreign currency transactions (net of foreign taxes withheld of $433,419)

6,295,429

Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency

(15,064,563

)

Net realized and unrealized loss on investments and foreign currency transactions

(8,769,134

)

Change in net assets resulting from operations

(9,127,493

)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Six Months
Ended
(unaudited)
May 31,
2000

Year Ended
November 30,
1999

Increase (Decrease) in Net Assets

Operations:

Net operating loss

(358,359

)

(262,366

)

Net realized gain on investments and foreign currency transactions ($6,295,429 and $(5,078,119) respectively, as computed for federal tax purposes)

6,295,429

5,049,405

Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency

(15,064,563

)

14,356,477

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS

(9,127,493

)

19,143,516

Share Transactions:

Proceeds from sale of shares

107,775,407

95,821,836

Cost of shares redeemed

(100,960,279

)

(71,557,870

)

CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS

6,815,128

24,263,966

Change in net assets

(2,312,365

)

43,407,482

Net Assets:

Beginning of period

54,514,945

11,107,463

End of period

52,202,580

54,514,945

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended November 30,

Period Ended
November 30,

2000

1999

1998

1997

1996

Net Asset Value, Beginning of Period

$13.58

$ 6.40

$ 7.81

$10.25

$10.00

Income From Investment Operations:

Net operating loss

(0.05

)

(0.07

)²

(0.05

)

(0.03

)

(0.00

)³

Net realized and unrealized gain (loss) on investments and foreign currency transactions

(2.34

)

7.25

(1.36

)

(2.41

)

0.25

TOTAL FROM INVESTMENT OPERATIONS

(2.39

)

7.18

(1.41

)

(2.44

)

0.25

Net Asset Value, End of Period

$11.19

$13.58

$ 6.40

$ 7.81

$10.25

Total Return⁴

(17.60

112.19

(18.05

(23.80

2.50

Ratios to Average Net Assets:

Expenses

1.86

%⁵

1.85

%⁵

Net operating loss

(0.78

%)⁵

(0.78

(0.35

(0.53

Expense waiver/reimbursement⁶

0.42

%⁵

1.90

3.78

4.77

7.02

%⁵

Supplemental Data:

Net assets, end of period (000 omitted)

$23,894

$25,883

$6,345

$7,297

$4,593

Portfolio turnover

191

260

347

193

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

2 Per share amount is based on average 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended November 30,

Period Ended
November 30,

2000

1999

1998

1997

1996

Net Asset Value, Beginning of Period

$13.24

$ 6.29

$ 7.73

$10.19

$10.00

Income From Investment Operations:

Net operating loss

(0.08

)

(0.14

)²

(0.07

)

(0.08

)

(0.03

)

Net realized and unrealized gain (loss) on investments and foreign currency transactions

(2.30

)

7.09

(1.37

)

(2.38

)

0.22

TOTAL FROM INVESTMENT OPERATIONS

(2.38

)

6.95

(1.44

)

(2.46

)

0.19

Net Asset Value, End of Period

$10.86

$13.24

$ 6.29

$ 7.73

$10.19

Total Return³

(17.98

110.49

(18.63

(24.14

1.90

Ratios to Average Net Assets:

Expenses

2.61

%⁴

2.60

%⁴

Net operating loss

(1.53

%)⁴

(1.53

(1.10

(1.25

(0.86

%)⁴

Expense waiver/reimbursement⁵

0.42

%⁴

1.90

3.78

4.77

7.02

%⁴

Supplemental Data:

Net assets, end of period (000 omitted)

$17,781

$16,414

$4,154

$3,606

$2,273

Portfolio turnover

191

260

347

193

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

2 Per share amount 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended November 30,

Period Ended
November 30,

2000

1999

1998

1997

1996

Net Asset Value, Beginning of Period

$13.28

$ 6.31

$ 7.74

$10.20

$10.00

Income From Investment Operations:

Net operating loss

(0.11

)

(0.16

)²

(0.08

)

(0.12

)

(0.05

)

Net realized and unrealized gain (loss) on investments and foreign currency transactions

(2.28

)

7.13

(1.35

)

(2.34

)

0.25

TOTAL FROM INVESTMENT OPERATIONS

(2.39

)

6.97

(1.43

)

(2.46

)

0.20

Net Asset Value, End of Period

$10.89

$13.28

$ 6.31

$ 7.74

$10.20

Total Return³

(18.00

110.46

(18.48

(24.12

2.00

Ratios to Average Net Assets:

Expenses

2.61

%⁴

2.60

%⁴

Net operating loss

(1.55

%)⁴

(1.53

(1.10

(1.22

(0.90

%)⁴

Expense waiver/reimbursement⁵

0.42

%⁴

1.90

3.78

4.77

7.02

%⁴

Supplemental Data:

Net assets, end of period (000 omitted)

$10,527

$12,218

$608

$511

$397

Portfolio turnover

191

260

347

193

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

2 Per share amount 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

MAY 31, 2000 (UNAUDITED)

ORGANIZATION

Federated World Investment Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Corporation consists of nine portfolios. The financial statements included herein are only those of Federated Asia Pacific Growth Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held.

The Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares. The investment objective of the Fund is to provide long-term growth of capital.

SIGNIFICANT ACCOUNTING POLICIES

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. These policies are in conformity with generally accepted accounting principles.

Investment Valuation

Foreign and domestic equity securities are valued at the last sale price reported on a national securities exchange or over-the-counter market. In the absence of recorded sales for equity securities, they are valued according to the mean between the last closing bid and asked prices. Short-term foreign and domestic securities are valued at the prices provided by an independent pricing service. However, short-term foreign and domestic securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value.

Repurchase Agreements

It is the policy of the Fund to require the custodian bank to take possession, to have legally segregated in the Federal Reserve Book Entry System, or to have segregated within the custodian bank's vault, all securities held as collateral under repurchase agreement transactions. Additionally, procedures have been established by the Fund to monitor, on a daily basis, the market value of each repurchase agreement's collateral to ensure that the value of collateral at least equals the repurchase price to be paid under the repurchase agreement.

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to guidelines and/or standards reviewed or established by the Board of Directors (the "Directors"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. Bond premium and discount, if applicable, are amortized as required by the Internal Revenue Code, as amended (the "Code"). Dividend income and distributions to shareholders are recorded on the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at fair value. The Fund offers multiple classes of shares, which differ in their respective distribution and service fees. All shareholders bear the common expenses of the Fund based on average daily net assets of each class, without distinction between share classes. Dividends are declared separately for each class. No class has preferential dividend rights; differences in per share dividend rates are generally due to differences in separate class expenses.

Federal Taxes

It is the Fund's policy to comply with the provisions of the Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

Withholding taxes on foreign interest and dividends have been provided for in accordance with the applicable country's tax rules and rates.

At November 30, 1999, the Fund, for federal tax purposes, had a capital loss carryforward of $1,646,959, which will reduce the Fund's taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire in 2006.

When-Issued and Delayed Delivery Transactions

The Fund may engage in when-issued or delayed delivery transactions. The Fund records when-issued securities on the trade date and maintains security positions such that sufficient liquid assets will be available to make payment for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked to market daily and begin earning interest on the settlement date. Losses may occur on these transactions due to changes in market conditions or the failure of counterparties to perform under the contract.

Foreign Exchange Contracts

The Fund may enter into foreign currency commitments for the delayed delivery of securities or foreign currency exchange transactions. Purchased contracts are used to acquire exposure to foreign currencies; whereas, contracts to sell are used to hedge the Fund's securities against currency fluctuations. Risks may arise upon entering these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency transactions are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date.

At May 31, 2000, the Fund had outstanding foreign currency commitments as set forth below:

Settlement Date	Contract to Receive	In Exchange For	Contracts at Value	Unrealized Depreciation
Contract Purchased:
6/2/2000	43,522,833 Japanese Yen	$404,977	$404,093	$(884)

Foreign Currency Translation

The accounting records of the Fund are maintained in U.S. Dollars. All assets and liabilities denominated in foreign currencies ("FC") are translated into U.S. Dollars based on the rates of exchange of such currencies against U.S. Dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the U.S. Dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from the registration. Such restricted securities may be determined to be liquid under criteria established by the Directors. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Fund's pricing committee.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets, liabilities, expenses and revenues reported in the financial statements. Actual results could differ from those estimated.

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2000, par value shares ($0.001 per share) authorized were as follows:

Share Class Name		Number of Shares of Par Value Capital Stock Authorized
Class A		100,000,000
Class B		100,000,000
Class C		50,000,000
TOTAL		250,000,000

Transactions in capital stock were as follows:

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class A Shares:

Shares

Amount

Shares

Amount

Shares sold

5,888,527

78,916,459

3,513,629

37,092,463

Shares redeemed

(5,658,930

)

(78,242,715

)

(2,599,262

)

(26,900,386

)

NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS

229,597

673,744

914,367

10,192,077

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class B Shares:

Shares

Amount

Shares

Amount

Shares sold

1,067,138

14,593,216

4,590,130

43,254,286

Shares redeemed

(669,260

)

(8,992,070

)

(4,010,557

)

(38,130,180

)

NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS

397,878

5,601,146

579,573

5,124,106

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class C Shares:

Shares

Amount

Shares

Amount

Shares sold

1,045,589

14,265,732

1,569,939

15,475,087

Shares redeemed

(998,538

)

(13,725,494

)

(746,556

)

(6,527,304

)

NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS

47,051

540,238

823,383

8,947,783

NET CHANGE RESULTING FROM SHARE TRANSACTIONS

674,526

6,815,128

2,317,323

24,263,966

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Global Investment Management Corp., the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 1.10% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Funds with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp., ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Class A Shares, Class B Shares and Class C Shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC.

Share Class Name		Percentage of Average Daily Net Assets of Class
Class A Shares		0.25%
Class B Shares		0.75%
Class C Shares		0.75%

Class A Shares did not incur a distribution services fee for the period ended May 31, 2000, and has no present intention of paying or accruing a distribution services fee.

Shareholder Services Fee

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary FSSC, serves as transfer and dividend disbursing agent for the Fund. The fee paid to FSSC is based on the size, type, and number of accounts and transactions made by shareholders.

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

Organizational Expenses

Organizational expenses of $48,248 were borne initially by the Adviser. The Fund has reimbursed the Adviser for these expenses. These expenses have been deferred and are being amortized over the five-year period following the Fund's effective date. For the period ended May 31, 2000, the Fund expensed $6,275 of organizational expenses.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the period ended May 31, 2000, were as follows:

Purchases		$	101,244,092
Sales		$	100,458,095

CONCENTRATION OF CREDIT RISK

The Fund invests in securities of non-U.S. issuers. The political or economic developments within a particular country or region may have an adverse effect on the ability of domiciled issuers to meet their obligations. Additionally, political or economic developments may have an effect on the liquidity and volatility of portfolio securities and currency holdings.

LINE OF CREDIT

Effective November 29, 1999, the Corporation entered into a $75,000,000 unsecured committed revolving line of credit ("LOC") agreement with the State Street Corporation. The LOC was made available for the extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.50% over the federal funds rate. The LOC includes a commitment fee of 0.08% per annum on the daily unused portion. The Corporation did not utilize the LOC during the period ended May 31, 2000.

Directors

JOHN F. DONAHUE

THOMAS G. BIGLEY

JOHN T. CONROY, JR.

NICHOLAS P. CONSTANTAKIS

JOHN F. CUNNINGHAM

J. CHRISTOPHER DONAHUE

LAWRENCE D. ELLIS, M.D.

PETER E. MADDEN

CHARLES F. MANSFIELD, JR.

JOHN E. MURRAY, JR., J.D., S.J.D.

MARJORIE P. SMUTS

JOHN S. WALSH

Officers

JOHN F. DONAHUE

Chairman

RICHARD B. FISHER

President

HENRY A. FRANTZEN

Chief Investment Officer

J. CHRISTOPHER DONAHUE

Executive Vice President

EDWARD C. GONZALES

Executive Vice President

JOHN W. MCGONIGLE

Executive Vice President and Secretary

RICHARD J. THOMAS

Treasurer

G. ANDREW BONNEWELL

Assistant Secretary

Mutual funds are not bank deposits or obligations, are not 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. Investment in mutual funds involves investment risk, including the possible loss of principal.

This report is authorized for distribution to prospective investors only when preceded or accompanied by the fund's prospectus which contains facts concerning its objective and policies, management fees, expenses and other information.

Federated
World-Class Investment Manager

SEMI-ANNUAL REPORT

AS OF MAY 31, 2000

Federated Asia Pacific Growth Fund

Established 1996

4TH SEMI-ANNUAL REPORT

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

Cusip 31428U102
Cusip 31428U201
Cusip 31428U300

G01934-02 (7/00)

Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.

Federated Investors
World-Class Investment Manager

Richard B. Fisher

President

Federated European Growth Fund

President's Message

Dear Fellow Shareholder:

Federated European Growth Fund was created in 1996, and I am pleased to present its fourth Semi-Annual Report. As of May 31, 2000, the fund's net assets totaled $85.4 million and were invested in over 70 securities in Europe selected for their capital appreciation potential.

This report covers the first half of the fund's fiscal year, which is the six-month period from December 1, 1999 through May 31, 2000. It begins with an interview with the fund's portfolio manager, Frank Semack, Vice President of Federated Global Investment Management Corp. Following his discussion of European market conditions and fund strategy are two additional items of shareholder interest. First is a complete listing of the fund's investments, and second is the publication of the fund's financial statements.

The fund offers shareholders significant long-term growth opportunities from a select portfolio of stocks issued by European companies.¹ Despite the volatility that was present in the world's markets, the fund posted positive returns that were ahead of its benchmark index. Individual share class total return performance for the six-month reporting period, including realized gains, follows:²

	Total Return	Capital Gains	Net Asset Value Change
Class A Shares	6.16%	$1.05	$17.60 to $17.65 = 0.28%
Class B Shares	5.73%	$1.05	$17.11 to $17.06 = (0.29%)
Class C Shares	5.75%	$1.05	$17.06 to $17.01 = (0.29%)

1 Foreign investing involves special risks including currency risk, increased volatility of foreign securities and differences in auditing and other financial standards.

2 Performance quoted is based on net asset value, represents past performance, and is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on the offering price (i.e., less any applicable sales charge), for Class A, B, and C Shares were 0.35%, 0.25%, and 4.75%, respectively.

While the fund has provided shareholders with strong returns since its inception on February 28, 1996, it is important to remember that, as we have just experienced, there will inevitably be periods of short-term fluctuation. My recommendation to all mutual fund shareholders is to add to your investment account on a regular basis to take advantage of price fluctuations and to use the dollar-cost averaging method of investing.³

Thank you for your continued confidence in Federated European Growth Fund.

Sincerely,

Richard B. Fisher

Richard B. Fisher
President
July 15, 2000

Frank Semack

Vice President

Federated Global Investment Management Corp.

Investment Review

The last six months looked like a roller-coaster ride. Why?

The "new economy" trinity of technology, media and telecommunications sectors ("TMT") contributed more than 100% of the markets' performance up to mid-March, while returns in the remaining sectors were, in most cases, negative.¹

TMT surged, especially in February, with scant regard to valuations. A violent rotation in March out of TMT into the wasteland of "old economy" stocks narrowed the gap between old and new sector valuations and performance. Small-cap growth stocks were mauled so badly as to suggest the possible start of a bear market in that particular sub-sector.

At the same time, cyclically sensitive stocks lost massively in the first two months of the year, in stark contrast with the normal seasonal pattern. Energy stocks withered despite a run-up in oil prices from $25/barrell to $33/barrell by mid-March. Then, the sector started to do better just as oil prices gave back some strength. Defensive stocks, at best, elicited little more than a collective yawn from investors in the early part of the year before benefiting from "refugee" money from the TMT sector.

Financial stocks also had a tough time early in the year in the face of two 25 basis point hikes in official interest rates by the European Central Bank from 3% to 3.5% in the eurozone, and from 5.5% to 6.0% in the United Kingdom, by the end of the first quarter. There was a further rise in rates in Europe in late April to 3.75%.

1 Funds that have a higher concentration of investments in a specific industry or sector, such as technology, may be subject to a higher degree of market risk than funds whose investments are more diversified.

The following "bargain" chart clearly displays the performance of various sectors during the period from November 30, 1999 to the "Ides of March," and the reversal of performance from March 10, 2000 through May 31, 2000. It was not an easy time for any money manager.

[Graphic Representation Omitted - See Appendix]

Source: Dow Jones Stoxx Index, Bloomberg

What changed in March to account for such a shift?

Nothing and everything, so to speak. The whole world had essentially behaved like a warrant on the NASDAQ and the Dow Jones Industrial Average, and the new economy/old economy switch that occurred in the United States was replicated overseas. There were other similarities, too. For instance, a corporate reporting season that generally went better than expected. Economic growth is running at a high rate in most Organization of Economic Cooperation and Development (OECD) countries, and inflation is still generally tame. However, the markets finally found it impossible to carry on rising indiscriminately against the trend of rising interest rates, especially in areas with extremely high valuations resting on little more than optimistic earnings estimates years into the future. Something had to give eventually--but of course, one could have argued that point just as convincingly at the end of 1999. Furthermore, Federal Reserve Board Chairman Alan Greenspan increased interest rates six times in the last 12 months, which reminded us of his fear of inflation time and time again.

What can you report about corporate activity in Europe?

It has continued at a high level. The most significant event was Vodafone's victory in its bid for Mannesmann, which signified the continuing moves towards consolidation throughout Europe. Additionally, France Telecom acquired Orange from Vodafone as part of the requirement for Vodafone's acquisition of Mannesmann.

Unfortunately, there were also important examples of failed mergers. For instance, an announced merger between Deutsche Bank and Dresdner Bank in Germany quickly ran into trouble and collapsed before shareholders had a chance to vote on it, while the Spanish government prevented a mooted combination between Spain's Telefonica and KPN of the Netherlands. Shortly thereafter, NTT DoCoMo of Japan bid for 15% of KPN's mobile unit.

Speaking of the telecommunications sector, do not forget the immense importance of the outcome of the third-generation licenses in the United Kingdom which raised £22.5bn, or around ten times the initially expected total for their government, thus putting unexpected additional financial burdens on the winners--Vodafone, British Telecom, Orange, and Deutsche Telekom through its subsidiary One-2-One. The whole sector subsequently came under pressure in Europe as investors began to worry about the implications of this for operators in Germany, France and elsewhere, although the licensing procedures will vary from market to market.

How did Federated European Growth Fund perform during the six-month reporting period from December 1, 1999 through May 31, 2000?

The fund produced six-month total returns of 6.16% for Class A Shares, 5.73% for Class B Shares, and 5.75% for Class C Shares, based on net asset value.² These returns outperformed the overall return of the European market, as measured by the Morgan Stanley Capital International Europe Index, of 4.61%.³ The average total return of the 107 European region funds tracked by Lipper Analytical Services, Inc. was 10.88%.⁴

2 Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on the offering price (i.e., less any applicable sales charge), for Class A, B and C Shares were 0.35%, 0.25% and 4.75%, respectively.

3 MSCI Europe Index is an unmanaged, market value-weighted average of over 530 securities listed on the stock exchanges of 15 countries in the European region. Investments cannot be made in an index.

4 Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper Analytical Services, Inc. as falling into the category indicated. Lipper returns do not take sales charges into account.

How was Federated European Growth Fund allocated among sectors and what were the top ten holdings as of May 31, 2000?

The sector breakdown was as follows:

Sector		Percentage of Net Assets
Telecommunication Services		20.5%
Banks		16.6%
Technology Hardware & Equipment		10.4%
Media		8.4%
Food & Drug Retailing		5.4%
Utilities		4.4%
Energy		4.3%
Pharmaceuticals & Biotechnology		3.9%
Food, Beverage & Tobacco		3.5%

Sector		Percentage of Net Assets
Capital Goods		3.4%
Insurance		3.3%
Software & Services		2.5%
Materials		2.0%
Health Care Equipment & Services		0.8%

The top ten holdings were as follows:

Name	Country	Percentage of Net Assets	Market Capitalization ($ billion)
Telefonica SA	Spain	2.55%	$ 66.8

Vodafone Air Touch PLC	United Kingdom	2.54%	279.6

Credit Lyonnais SA	France	2.33%	13.3

Nokia Oyj	Finland	2.13%	241.8

Bouygues SA	France	2.06%	17.6

Energis PLC	United Kingdom	2.05%	11.8

Portugal Telecom SA	Portugal	2.05%	10.2

TotalFina SA, Class B	France	1.99%	113.4

Establissements Economiques du Casino Guichard-Perrachon	France	1.95%	6.8

Continente Cent Co.	Spain	1.93%	1.7

TOTAL		21.53%

What were some of the fund's recent stock purchases?

Some of the fund's recent purchases included the following companies:

Den Danske Bank (1.36% of net assets): Den Danske Bank is a Danish bank with good loan growth and low loan loss provisions, 15% earnings growth, and 15% return on equity. At 9.5 times price/earnings and 1.3 times book value, the stock is not expensive.

WPP Group (0.9% of net assets): WPP is a global advertising company based in the United Kingdom and is involved in industry consolidation through its recent acquisition of Young & Rubicam in the United States. WPP continues to benefit from a buoyant advertising market.

Alleanza (1.50% of net assets): Alleanza is a leader in the life insurance business in Italy with an improving expense ratio and strong balance sheet. The stock trades at a 20% discount to its appraisal value.

What is your outlook and current strategy?

As mentioned earlier, the economic situation in Europe remains favorable even though the weakness of the euro and surging oil prices have had a negative impact on short-term inflation prospects. There is no structural reason for the weakness of the euro except possibly the fact that currency rates nowadays appear to be largely driven by flows among equity markets. Until and unless Europe begins to be viewed as a much better alternative for equity investors than the United States or Japan, there may not be sufficient capital inflows at the margin to boost the euro.

As for the equity markets themselves, the volatility of share prices among the smaller TMT stocks more than doubled to around 50% annualized by the end of the first quarter, and volatility for the broad market also roughly doubled to around 25% annualized. These levels rose further in the second quarter, signifying the high degree of uncertainty among investors as to what returns they could reasonably expect. The fund had a high exposure to the TMT area in the first quarter, which benefited its performance in the first two months of the year. We reduced exposure in March in light of the growing uncertainties and volatility.

The Year 2000 TMT price to earnings ("P/E") ratios of around 45 are still nearly three times the level of non-TMT stocks' P/E ratios. The valuation disparities narrow considerably when adjusted for medium-term growth prospects, but even so, European TMT valuations are 1.5 times more expensive than in the United States. There may be some rotation back into technology issues on a more differentiated basis than was the case in the first part of 2000, but a sustained upturn is unlikely until the second half of the year. Performance from this point on is likely to be fully dependent on the ability of NASDAQ stocks to stabilize.

Two Ways You May Seek to Invest for Success:

INITIAL INVESTMENT

If you had made an initial investment of $5,000 in the Class A Shares of Federated European Growth Fund on 2/28/96, reinvested your dividends and capital gains, and did not redeem any shares, your account would have been worth $9,831 on 5/31/00. You would have earned a 17.21%¹ average annual total return for the investment life span.

One key to investing wisely is to reinvest all distributions in fund shares. This increases the number of shares on which you can earn future dividends and you gain the benefit of compounding.

As of 6/30/00, the Class A Shares' 1-year, 3-year and since inception (2/28/96) average annual total returns were 18.32%, 14.82% and 17.74%, respectively. Class B Shares' 1-year, 3-year and since inception (2/28/96) average annual total returns were 18.74%, 15.11% and 18.10%, respectively. Class C Shares' 1-year, 3-year and since inception (2/28/96) average annual total returns were 23.26%, 16.05% and 18.30%, respectively.²

[Graphic Representation Omitted - See Appendix]

1 Total returns represent the change in the value of an investment after reinvesting all income and capital gains, and take into account the 5.50% sales charge applicable to an initial investment in Class A Shares. Data quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate, so an investor's shares, when redeemed, may be worth more or less than their original cost.

2 The total returns stated take into account all applicable sales charges. The maximum sales charges and contingent deferred sales charges for the fund are as follows: Class A Shares, 5.50% sales charge; Class B Shares, 5.50% contingent deferred sales charge and Class C Shares, 1.00% contingent deferred sales charge.

ONE STEP AT A TIME

$1,000 initial investment and subsequent investments of $1,000 each year for three years (reinvesting all dividends and capital gains) grew to $6,735.

With this approach, the key is consistency.

If you had started investing $1,000 annually in the Class A Shares of Federated European Growth Fund on 2/28/96, reinvested your dividends and capital gains and did not redeem any shares, you would have invested only $4,000, but your account would have reached a total value of $6,735¹ by 5/31/00. You would have earned an average annual total return of 13.34%.

A practical investment plan helps you pursue long-term capital growth through a diversified portfolio primarily invested in equity securities of European companies. Through systematic investing, you buy shares on a regular basis and reinvest all earnings. An investment plan can work for you when you invest only $1,000 annually. You can take it one step at a time. Put time, money, and compounding to work.

[Graphic Representation Omitted - See Appendix]

1 This chart assumes that the subsequent annual investments are made on the last day of each anniversary month. No method of investing can guarantee a profit or protect against loss in down markets.

Portfolio of Investments

MAY 31, 2000 (UNAUDITED)

Shares				Value in U.S. Dollars
			COMMON STOCKS--89.4%
			Banks--16.6%
	111,000		Abbey National Bank PLC, London	$	1,477,906
	280		Banco Santander Central Hispano, SA		2,745
	98,400		Bank of Scotland, Edinburgh		927,927
	13,200		Banque Nationale de Paris		1,191,470
	52,147		Barclays PLC		1,357,397
	79,978		Bca Fideuram Spa		1,210,263
	223,000		Christiania Bank OG Kreditkasse		1,149,034
	46,350	¹	Credit Lyonnais SA		1,990,872
	10,000		Den Danske Bank Group		1,162,224
	18,000		Deutsche Bank AG		1,387,949
	37,600		Dresdner Bank AG, Frankfurt		1,543,472
	5,700		UBS AG		769,061

			TOTAL		14,170,320

			Capital Goods--3.4%
	5,200		Legrand		1,070,691
	7,000		Siemens AG		1,026,683
	22,000		Skanska Ab, Class B		817,898

			TOTAL		2,915,272

			Energy--4.3%
	2,500		Elf Aquitaine SA		520,819
	177,500		Shell Transport & Trading Co.		1,469,934
	10,800		TotalFina SA, Class B		1,701,812

			TOTAL		3,692,565

			Food & Drug Retailing--5.4%
	12,500		Carrefour SA		884,553
	90,040		Continente Cent Co.		1,646,455
	18,720		Etablissements Economiques du Casino Guichard-Perrachon		1,667,890
	95,400		Sainsbury (J) PLC		435,538

			TOTAL		4,634,436

Shares				Value in U.S. Dollars
			COMMON STOCKS--continued
			Food Beverage & Tobacco--3.5%
	101,000		Gallaher Group PLC	$	526,113
	71,000		Imperial Tobacco Group PLC		624,373
	120,000		Scottish & Newcastle PLC		1,038,215
	121,000		Unilever PLC		799,186

			TOTAL		2,987,887

			Health Care Equipment & Services--0.8%
	90		Straumann Holding AG		111,967
	640		Tecan AG		559,242

			TOTAL		671,209

			Insurance--3.3%
	111,098		Alleanza Assicurazioni		1,279,027
	1,600		Baloise Holdings Ltd.		1,499,526
	1,600		Baloise Holdings Ltd., Warrants		5,299

			TOTAL		2,783,852

			Materials--2.0%
	29,000		Bayer AG		1,120,100
	35,000		CRH PLC		610,616

			TOTAL		1,730,716

			Media--8.4%
	11,600		EM.TV & Merchandising		779,200
	1,400		M6 Metropole Television		795,433
	65,000		Reuters Group PLC		969,060
	1,300		Tf1 - Tv Francaise		836,856
	120,500		United News & Media PLC		1,521,424
	66,000		WPP Group PLC		803,179
	61,017		Wolters Kluwer NV		1,492,024

			TOTAL		7,197,176

			Pharmaceuticals & Biotechnology--3.9%
	16,150		Aventis SA		1,050,180
	27,500	¹	Celltech PLC		400,108
	20,100	¹	Elan Corp. Plc, ADR		800,231
	7,020		Schering AG		1,052,474
	303		Smithkline Beecham Corp.		3,873

			TOTAL		3,306,866

Shares				Value in U.S. Dollars
			COMMON STOCKS--continued
			Software & Services--2.5%
	2,944	¹	Articon Information Sytems AG	$	179,903
	75,200		CMG PLC		1,050,213
	2,180		Intershop Communications AG		880,649

			TOTAL		2,110,765

			Technology Hardware & Equipment--10.4%
	1,700	¹	ADVA AG Optical Networking		904,028
	28,500	¹	ASM Lithography Holding NV		1,049,205
	29,500		Alcatel		1,632,056
	11,800		Koninklijke (Royal) Philips Electronics NV		526,882
	77	¹	Kudelski SA		856,443
	35,000		Nokia Oyj		1,822,051
	14,200	¹	STMicroelectronics NV		850,225
	61,200		Telefonaktiebolaget LM Ericsson		1,243,210

			TOTAL		8,884,100

			Telecommunication Services--20.5%
	2,700		Bouygues SA		1,672,592
	135	¹	Bouygues SA		83,378
	105,324		British Telecommunication PLC		1,527,669
	96,000		Cable & Wireless PLC		1,602,227
	24,464		Deutsche Telekom AG		1,517,775
	46,100	¹	Energis PLC		1,752,720
	14,900		KPN NV		1,345,612
	160,198		Portugal Telecom SA		1,748,643
	70,000	²	Telecel - Comunicacoes Pessoais SA		1,136,333
	121,000		Telecom Italia SpA		750,698
	106,167		Telefonica SA		2,179,067
	474,600		Vodafone AirTouch PLC		2,166,734

			TOTAL		17,483,448

Shares or Principal Amount				Value in U.S. Dollars
			COMMON STOCKS--continued
			Utilities--4.4%
	104,500		Scottish Power PLC	$	829,030
	8,000		Suez Lyonnaise des Eaux		1,343,448
	15,000		Vivendi		1,609,338

			TOTAL		3,781,816

			TOTAL COMMON STOCKS (IDENTIFIED COST $74,911,492)		76,350,428

			REPURCHASE AGREEMENTS--10.7%³
$	9,150,000		Paribas Corp., 6.58%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		9,150,000

			TOTAL INVESTMENTS (IDENTIFIED COST $84,061,492)⁴	$	85,500,428

1 Non-income producing security.

2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. This security has been deemed liquid based upon criteria approved by the fund's Board of Directors. At May 31, 2000, this security amounted to $1,136,333 which represents 1.3% of net assets.

4 The cost of investments for federal tax purposes amounts to $84,061,492. The net unrealized appreciation of investments on a federal tax basis amounts to $1,438,936 which is comprised of $6,484,796 appreciation and $5,045,860 depreciation at May 31, 2000.

Note: The categories of investments are shown as a percentage of net assets ($85,407,648) at May 31, 2000.

The following acronym is used throughout this portfolio:

ADR	--American Depositary Receipt

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

MAY 31, 2000 (UNAUDITED)

Assets:
Investments in repurchase agreements	$	9,150,000
Investments in securities		76,350,428

Total investments in securities, at value (identified and tax cost $84,061,492)			$	85,500,428
Cash denominated in foreign currencies (identified cost $340,931)				342,496
Income receivable				118,865
Receivable for investments sold				2,851,114
Receivable for shares sold				1,353,362
Deferred organizational costs				7,426

TOTAL ASSETS				90,173,691

Liabilities:
Payable for investments purchased		3,340,086
Payable for shares redeemed		13,446
Net payable for foreign currency contracts		8,182
Payable to bank		1,343,175
Accrued expenses		61,154

TOTAL LIABILITIES				4,766,043

Net assets for 4,911,841 shares outstanding			$	85,407,648

Net Assets Consist of:
Paid in capital			$	72,516,391
Net unrealized appreciation of investments and translation of assets and liabilities in foreign currency				1,413,421
Accumulated net realized gain on investments and foreign currency transactions				11,728,771
Accumulated net operating loss				(250,935	)

TOTAL NET ASSETS			$	85,407,648

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net Asset Value Per Share ($48,893,106 ÷ 2,769,993 shares outstanding)				$17.65

Offering Price Per Share (100/94.50 of $17.65)¹				$18.68

Redemption Proceeds Per Share				$17.65

Class B Shares:
Net Asset Value Per Share ($26,630,015 ÷ 1,560,655 shares outstanding)				$17.06

Offering Price Per Share				$17.06

Redemption Proceeds Per Share (94.50/100 of $17.06)¹				$16.12

Class C Shares:
Net Asset Value Per Share ($9,884,527 ÷ 581,193 shares outstanding)				$17.01

Offering Price Per Share				$17.01

Redemption Proceeds Per Share (99.00/100 of $17.01)¹				$16.84

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)

Investment Income:
Dividends (net of foreign taxes withheld of $97,643)				$	483,365
Interest					201,596

TOTAL INCOME					684,961

Investment adviser fee	$	418,412
Administrative personnel and services fee		92,501
Custodian fees		51,324
Transfer and dividend disbursing agent fees and expenses		57,556
Directors'/Trustees' fees		825
Auditing fees		7,836
Legal fees		3,273
Portfolio accounting fees		40,612
Distribution services fee--Class B Shares		97,810
Distribution services fee--Class C Shares		31,264
Shareholder services fee--Class A Shares		61,578
Shareholder services fee--Class B Shares		32,604
Shareholder services fee--Class C Shares		10,421
Share registration costs		20,197
Printing and postage		23,107
Insurance premiums		597
Taxes		3,158
Interest expense--line of credit		3,880
Miscellaneous		7,904

TOTAL EXPENSES		964,859

Waiver of investment adviser fee		(60,184	)

Net expenses					904,675

Net operating loss					(219,714	)

Realized and Unrealized Gain (Loss) on Investments and Foreign Currency:
Net realized gain on investments and foreign currency transactions					11,766,052
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency					(8,298,999	)

Net realized and unrealized gain on investments and foreign currency					3,467,053

Change in net assets resulting from operations				$	3,247,339

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999
Increase (Decrease) in Net Assets
Operations:
Net operating loss	$	(219,714	)	$	(373,480	)
Net realized gain on investments and foreign currency transactions ($11,766,052 and $4,508,856, respectively, as computed for federal tax purposes)		11,766,052			4,380,564
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency		(8,298,999	)		4,650,605

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		3,247,339			8,657,689

Distributions to Shareholders:
Distributions from net realized gains on investments and foreign currency transactions
Class A Shares		(2,425,698	)		(1,455,402	)
Class B Shares		(1,282,023	)		(704,605	)
Class C Shares		(348,050	)		(98,397	)

CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(4,055,771	)		(2,258,404	)

Share Transactions:
Proceeds from sale of shares		150,151,950			68,140,970
Net asset value of shares issued to shareholders in payment of distributions declared		3,746,473			2,042,096
Cost of shares redeemed		(131,326,885	)		(73,859,459	)

CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		22,571,538			(3,676,393	)

Change in net assets		21,763,106			2,722,892

Net Assets:
Beginning of period		63,644,542			60,921,650

End of period	$	85,407,648		$	63,644,542

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,			Year Ended November 30,
	2000			1999			1998			1997			1996	¹
Net Asset Value, Beginning of Period	$17.60			$15.79			$13.33			$11.80			$10.00
Income From Investment Operations:
Net investment income (net operating loss)	(0.04	)		(0.06	)²		0.04			0.06	²		0.14
Net realized and unrealized gain on investments and foreign currency transactions	1.14			2.47			2.84			1.93			1.66

TOTAL FROM INVESTMENT OPERATIONS	1.10			2.41			2.88			1.99			1.80

Less Distributions:
Distributions from net investment income	--			--			--			(0.09	)		--
Distributions from net realized gain on investments and foreign currency transactions	(1.05	)		(0.60	)		(0.42	)		(0.37	)		--

TOTAL DISTRIBUTIONS	(1.05	)		(0.60	)		(0.42	)		(0.46	)		--

Net Asset Value, End of Period	$17.65			$17.60			$15.79			$13.33			$11.80

Total Return³	6.16	%		15.68	%		22.13	%		17.54	%		18.00	%


Ratios to Average Net Assets:

Expenses	1.86	%⁴		1.84	%		1.85	%		1.91	%		1.75	%⁴

Net investment income (net operating loss)	(0.23	%)⁴		(0.36	%)		0.24	%		0.50	%		1.60	%⁴

Expense waiver/reimbursement⁵	0.14	%⁴		0.44	%		0.63	%		2.79	%		11.10	%⁴

Supplemental Data:

Net assets, end of period (000 omitted)	$48,893		$37,555			$40,543			$17,008			$3,318

Portfolio turnover	188	%		226	%		175	%		119	%		58	%

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 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.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,			Year Ended November 30,
	2000			1999			1998			1997			1996	¹
Net Asset Value, Beginning of Period	$17.11			$15.48			$13.18			$11.74			$10.00
Income From Investment Operations:
Net investment income (net operating loss)	(0.05	)		(0.16	)²		(0.00	)³		(0.03	)²		0.01
Net realized and unrealized gain on investments and foreign currency transactions	1.05			2.39			2.72			1.91			1.73

TOTAL FROM INVESTMENT OPERATIONS	1.00			2.23			2.72			1.88			1.74

Less Distributions:
Distributions from net investment income	--			--			--			(0.07	)		--
Distributions from net realized gain on investments and foreign currency transactions	(1.05	)		(0.60	)		(0.42	)		(0.37	)		--

TOTAL DISTRIBUTIONS	(1.05	)		(0.60	)		(0.42	)		(0.44	)		--

Net Asset Value, End of Period	$17.06			$17.11			$15.48			$13.18			$11.74

Total Return⁴	5.73	%		14.80	%		21.14	%		16.61	%		17.40	%


Ratios to Average Net Assets:

Expenses	2.61	%⁵		2.59	%		2.60	%		2.66	%		2.50	%⁵

Net investment income (net operating loss)	(0.97	%)⁵		(1.11	%)		(0.51	%)		(0.25	%)		0.08	%⁵

Expense waiver/reimbursement⁶	0.14	%⁵		0.44	%		0.63	%		2.79	%		11.10	%⁵

Supplemental Data:

Net assets, end of period (000 omitted)	$26,630		$20,765			$17,952			$5,781			$1,215

Portfolio turnover	188	%		226	%		175	%		119	%		58	%

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 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,			Year Ended November 30,
	2000			1999			1998			1997			1996	¹
Net Asset Value, Beginning of Period	$17.06			$15.43			$13.15			$11.73			$10.00
Income From Investment Operations:
Net investment income (net operating loss)	(0.02	)		(0.17	)²		(0.00	)³		(0.03	)²		0.01
Net realized and unrealized gain on investments and foreign currency transactions	1.02			2.40			2.70			1.90			1.72

TOTAL FROM INVESTMENT OPERATIONS	1.00			2.23			2.70			1.87			1.73

Less Distributions:
Distributions from net investment income	--			--			--			(0.08	)		--
Distributions from net realized gain on investments and foreign currency transactions	(1.05	)		(0.60	)		(0.42	)		(0.37	)		--

TOTAL DISTRIBUTIONS	(1.05	)		(0.60	)		(0.42	)		(0.45	)		--

Net Asset Value, End of Period	$17.01			$17.06			$15.43			$13.15			$11.73

Total Return⁴	5.75	%		14.85%			21.03	%		16.55	%		17.30	%


Ratios to Average Net Assets:

Expenses	2.61	%⁵		2.59	%		2.60	%		2.66	%		2.50	%⁵

Net investment income (net operating loss)	(0.88	%)⁵		(1.11	%)		(0.51	%)		(0.23	%)		0.09	%⁵

Expense waiver/reimbursement⁶	0.14	%⁵		0.44	%		0.63	%		2.79	%		11.06	%⁵

Supplemental Data:

Net assets, end of period (000 omitted)	$9,885		$5,325			$2,426			$768			$176

Portfolio turnover	188	%		226	%		175	%		119	%		58	%

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 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

MAY 31, 2000 (UNAUDITED)

ORGANIZATION

Federated World Investment Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act") as an open-end, management investment company. The Corporation consists of nine portfolios. The financial statements included herein are only those of Federated European Growth Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held.

The Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares.

The investment objective of the Fund is to provide long-term growth of capital.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

Repurchase Agreements

Investment Income, Expenses and Distributions

Federal Taxes

Withholding taxes on foreign interest and dividends have been provided for in accordance with the applicable country's tax rules and rates.

When-Issued and Delayed Delivery Transactions

Foreign Exchange Contracts

The Fund may enter into foreign currency commitments for the delayed delivery of securities or foreign currency exchange transactions. The Fund may enter into foreign currency contract transactions to protect assets against adverse changes in foreign currency exchange rates or exchange control regulations. Purchased contracts are used to acquire exposure to foreign currencies; whereas, contracts to sell are used to hedge the Fund's securities against currency fluctuations. Risks may arise upon entering these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency transactions are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date.

At May 31, 2000, the Fund had outstanding foreign currency commitments set forth below:

Settlement Date	Contracts to Deliver	In Exchange For	Contracts at Value	Unrealized Depreciation
Contracts Sold:
6/1/2000	31,424 Pound Sterling	$ 46,256	$ 47,037	$ (781)

6/2/2000	26,363 Pound Sterling	$376,336	$383,737	$ (7,401)

NET UNREALIZED DEPRECIATION ON FOREIGN EXCHANGE CONTRACTS:				$(8,182)

Foreign Currency Translation

The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies ("FC") are translated into U.S. dollars based on the rates of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Directors. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Fund's pricing committee.

USE OF ESTIMATES

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2000, par value shares ($0.001 per share) authorized were as follows:

Share Class Name		Number of Par Value Capital Stock Authorized
Class A Shares		100,000,000
Class B Shares		100,000,000
Class C Shares		100,000,000
TOTAL		300,000,000

Transactions in capital stock were as follows:

	Six Months Ended May 31, 2000					Year Ended November 30, 1999
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	6,632,818		$	124,955,347		1,985,022		$	31,450,041
Shares issued to shareholders in payment of distributions declared	124,901			2,233,122		83,205			1,309,645
Shares redeemed	(6,120,964	)		(115,774,905	)	(2,502,252	)		(39,556,935	)

NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	636,755		$	11,413,564		(434,025	)	$	(6,797,249	)


	Six Months Ended May 31, 2000					Year Ended November 30, 1999
Class B Shares:	Shares			Amount		Shares			Amount
Shares sold	421,602		$	7,892,967		981,270		$	15,029,609
Shares issued to shareholders in payment of distributions declared	68,822			1,192,000		41,728			643,449
Shares redeemed	(143,151	)		(2,649,162	)	(969,066	)		(14,848,134	)

NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	347,273		$	6,435,805		53,932		$	824,924


	Six Months Ended May 31, 2000					Year Ended November 30, 1999
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	949,442		$	17,303,636		1,414,104		$	21,661,320
Shares issued to shareholders in payment of distributions declared	18,618			321,351		5,794			89,002
Shares redeemed	(699,059	)		(12,902,818	)	(1,264,995	)		(19,454,390	)

NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	269,001		$	4,722,169		154,903		$	2,295,932

NET CHANGE RESULTING FROM SHARE TRANSACTIONS	1,253,029		$	22,571,538		(225,190	)	$	(3,676,393	)

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Global Investment Management Corp., the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 1.00% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Fund with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc., subject to a $125,000 minimum per portfolio and $30,000 per each additional class.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Class A Shares, Class B Shares, and Class C Shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC.

Share Class Name		Percentage of Average Daily Net Assets of Class
Class A Shares		0.25%
Class B Shares		0.75%
Class C Shares		0.75%

Class A Shares did not incur a distribution services fee for the six-month period ended May 31, 2000, and has no present intention of paying or accruing a distribution services fee.

Shareholder Services Fee

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

Organizational Expenses

Organizational expenses of $42,822 were borne initially by the Adviser. The Fund has reimbursed the Adviser for these expenses. These expenses have been deferred and are being amortized over the five-year period following the Fund's effective date. For the period ended May 31, 2000, the Fund paid $5,569 pursuant to this agreement.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the six-month period ended May 31, 2000, were as follows:

Purchases	$	151,021,480

Sales	$	139,901,431

CONCENTRATION OF CREDIT RISK

At May 31, 2000, the diversification of countries was as follows:

Country		Percentage of Net Assets
Denmark		1.4%
Finland		2.1%
France		22.1%
Germany		12.2%
Ireland		1.6%
Italy		3.8%
Netherlands		5.2%
Norway		1.3%
Portugal		3.4%
Spain		4.5%
Sweden		2.4%
Switzerland		4.5%
United Kingdom		24.9%
United States		10.7%

LINE OF CREDIT

Effective November 29, 1999, the Corporation entered into a $75,000,000 unsecured committed revolving line of credit ("LOC") agreement with State Street Corporation. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.50% over the federal funds rate. The LOC includes a commitment fee of 0.08% per annum on the daily unused portion. As of May 31, 2000, there were no outstanding loans. During the six-month period ended May 31, 2000, the maximum outstanding borrowings were $6,455,000. The Fund had an average outstanding daily balance of $6,455,000 with a high and low interest rate of 6.81%, representing only the days that the LOC was utilized. Interest expense totaled $3,880 for the six-month period ended May 31, 2000.

Directors

JOHN F. DONAHUE

THOMAS G. BIGLEY

JOHN T. CONROY, JR.

NICHOLAS P. CONSTANTAKIS

JOHN F. CUNNINGHAM

J. CHRISTOPHER DONAHUE

LAWRENCE D. ELLIS, M.D.

PETER E. MADDEN

CHARLES F. MANSFIELD, JR.

JOHN E. MURRAY, JR., J.D., S.J.D.

MARJORIE P. SMUTS

JOHN S. WALSH

Officers

JOHN F. DONAHUE

Chairman

RICHARD B. FISHER

President

HENRY A. FRANTZEN

Chief Investment Officer

J. CHRISTOPHER DONAHUE

Executive Vice President

EDWARD C. GONZALES

Executive Vice President

JOHN W. MCGONIGLE

Executive Vice President and Secretary

RICHARD J. THOMAS

Treasurer

G. ANDREW BONNEWELL

Assistant Secretary

Federated
World-Class Investment Manager

SEMI-ANNUAL REPORT

AS OF MAY 31, 2000

Federated European Growth Fund

Established 1996

4TH SEMI-ANNUAL REPORT

Federated
Federated European Growth Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated Securities Corp., Distributor

Cusip 31428U706
Cusip 31428U805
Cusip 31428U888

G01742-02 (7/00)

Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.

Federated Investors
World-Class Investment Manager

Richard B. Fisher

President

Federated Emerging Markets Fund

President's Message

Dear Fellow Shareholder:

Federated Emerging Markets Fund was created in 1996, and I am pleased to present its fourth Semi-Annual Report. The fund provides investors easy access to stock and bond investments in 20-30 emerging markets located in Africa, Latin America, most of Asia and parts of Europe. Currently, the fund's equity holdings represent 31 countries and over 170 securities, and the fund's net assets stood at $81.3 million as of May 31, 2000.¹

This report covers the six-month period from December 1, 1999 through May 31, 2000. It begins with an interview with the fund's portfolio manager, Chris Matyszewski, Vice President of Federated Global Investment Management Corp. Following his discussion of the emerging market economic conditions and the fund's investment strategy are two additional items of shareholder interest. First is a complete listing of the fund's investments, and second is the publication of the fund's financial statements.

The volatility that the domestic markets experienced during the reporting period was also felt overseas. However, as a long-term investor, these short-term fluctuations are to be expected and should not distract you from pursuing long-term growth through a diversified portfolio of emerging market securities. Individual share class total return performance for the six-month reporting period follows.²

	Total Return	Net Asset Value Increase
Class A Shares	0.81%	$12.29 to $12.39 = 0.81%
Class B Shares	0.42%	$11.95 to $12.00 = 0.42%
Class C Shares	0.33%	$11.97 to $12.01 = 0.33%

1 International investing involves special risks including currency risk, increased volatility of foreign securities and differences in auditing and other financial standards. Prices of emerging market securities can be significantly more volatile than the prices of securities in developed countries.

Investing in emerging international markets, in which there is so much potential for growth, is clearly a long-term proposition. There will inevitably be volatile periods like we have experienced in the first half of the fund's fiscal year. In this investment environment, I recommend that you add to your account on a regular basis to take advantage of price fluctuations and to utilize the dollar-cost averaging method of investing. By investing the same amount regularly, you buy more fund shares when prices are low and fewer when prices are high. Adding to your account regularly is a convenient, painless way to "pay yourself first" and enjoy the benefit of compounding.³

Thank you for your continued confidence in Federated Emerging Markets Fund, and we appreciate your entrusting a portion of your wealth with the fund.

Sincerely,

Richard B. Fisher

Richard B. Fisher
President
July 15, 2000

3 Systematic investing does not assure a profit or protect against loss in declining markets. Because dollar-cost averaging involves continuous investing regardless of fluctuating price levels, investors should consider whether to continue purchases during periods of low price levels.

Christopher Matyszewski

Vice President

Federated Global Investment Management Corp.

Investment Review

What are your comments on the emerging marketplace for the first half of the fund's fiscal year?

Over the last six months, the global emerging marketplace has felt the influence of two very distinct forces. While an improved macroeconomic environment for many economies acted as a positive catalyst, a heightened level of correlation with developed markets ultimately caused these markets to correct. For example, the emerging markets' benchmark, the International Finance Corporation ("IFC") Investable Composite Index, declined 0.8% for the reporting period.¹

As the fund's fiscal year began in December 1999, a large emphasis was being placed on millennium bug concerns. Specifically, many reports pointed to emerging markets as the place most likely to experience Y2K-related problems. While this view would eventually be determined false, it did reduce liquidity in a number of smaller markets. Despite this, investors focused on recent accomplishments in emerging economies, such as improved sovereign debt levels, successful corporate restructurings, and the resurgence of a domestic retail investor in a number of countries. In Turkey, for example, local investors proved a powerful force, as shares nearly doubled following loan agreements with both the International Monetary Fund and the World Bank.

1 The IFC Investable Composite Index is an investable, unmanaged market capitalization-weighted index of over 1,000 securities in 26 emerging market countries. Investments cannot be made in an index.

In addition to these trends, investors were also realizing the integral role emerging countries and companies held in the recent global technology advance.² World-class firms, such as computer hardware manufacturers in Korea and Taiwan including Samsung Electronics and Winbond, and software designers in India and South Africa like Dimension Data, not only were global leaders in their respective fields, they were also trading at substantial discounts to global peers. As a result, technology-related shares provided investors with strong performance as we entered into the new calendar year.

However, as technology became a growing global focal point, the correlation between emerging and developed markets increased. Thus, as rising interest rates and equity valuations caused alarm for technology investors elsewhere, emerging market investors shared in the negative sentiment.

What regions or countries in particular felt the technology correction?

The ensuing correction was felt the hardest in Asia, where Korean and Indian securities declined in value dramatically.

In Korea, for example, despite the positive pricing outlook for computer chips, stock prices of companies such as Samsung Electronics and Hyundai Electronics failed to benefit. In addition to global technology concerns, losses faced by investment trust companies ("ITCs"), as well as the Hyundai group's involvement in bailing out their own ITC, focused investment attention on the country's age-old issue of corporate governance.

While investors in Taiwan also shared the concern of the technology correction, the island's presidential elections were of greater importance. In March, Taiwanese voters elected pro-independence candidate Chen, ending the long-standing Nationalist party rule of the KMT. While this was viewed as a positive step for democracy on the island, concern toward relations with the Chinese mainland caused many investors to adopt a "wait and see" stance. In China, however, investors began to focus on the positive impact of the nation's inclusion into the World Trade Organization.

As for Latin America, Mexico ended the reporting period slightly lower, while Brazilian shares realized modest gains. While Mexico enjoyed the status of being upgraded to investment grade during this period, pending elections and political uncertainty kept investors at bay. In addition, France Telecom's sale of a 10% stake in Telmex, Mexico's largest stock, created a hangover on the entire market. Mexico and Brazil both suffered from the concern of a hike in global interest rates, as higher rates in the United States might cause a stemming in the much needed investment flow to the region.

The Europe, Middle East and Africa regions, as a whole, declined during the first half of the fund's fiscal year. Investment flight drove stock values in South Africa lower, as negative sentiment due to farmer/land disputes in Zimbabwe weighed heavy on the region. Turkey, however, did stand out with its initial strong performance. Equities soared as interest rates declined from triple-digit levels, and the economy was seen to be on track to meet aggressive inflation targets. Delays in the privatization of Turkcell, the country's largest wireless telecommunication provider, and political concerns did bring a slight correction to the market later.

2 Funds that have a higher concentration of investments in a specific industry or sector, such as technology, may be subject to a higher degree of market risk than funds whose investments are more diversified.

How did the fund's total return compare to that of its benchmark index over the six-month reporting period?

The returns for the fund based on net asset value were: Class A Shares, 0.81%; Class B Shares, 0.42%; and Class C Shares, 0.33%.³ The fund's returns were less than the 2.93% average total return of the 180 emerging market mutual funds tracked by Lipper Analytical Services, Inc.⁴ The fund's benchmark, the IFC Investable Composite Index, produced a (0.8%) return for the reporting period.

The fund ended the six-month reporting period relatively in line with its benchmark index. During this time, the fund's exposure to technology shares in India, Korea and Taiwan acted to provide both initial positive returns and a later means of correction. An overweight in Turkish equities provided some of the strongest positive contribution.

As a risk-control measure, the fund is broadly diversified among markets and securities. What countries and holdings had the greatest influence on the fund's performance during the six-month reporting period?

While the fund maintained broad diversification to countries and sectors across emerging markets, our belief in the secular growth story and the importance of technology to emerging markets was one important driver to the fund's performance. While long-term fundamentals for a number of these companies remained strong and valuations relatively more attractive than global peers, shares in these companies were not able to escape the global correction. Specifically, shares in larger capitalized markets, such as India, Korea and Taiwan, witnessed a high correlation with the NASDAQ in the United States. Also of great influence was the fund's overweight in Turkish equities, where initial local optimism drove share prices beyond a number of our price targets.

Accordingly, we have consolidated our positions in technology into those companies with the strongest fundamentals and liquidity, while realizing substantial profits in Turkey.

Can you highlight a few noteworthy additions to the portfolio during the report period?

Teva Pharmaceuticals (Israel, 0.9% of net assets): Manufactures and markets both branded and generic pharmaceuticals. Teva is one of the world's leading marketers in the generic sector, and the company is also rapidly gaining market share with its Multiple Sclerosis drugs.

Usinas Siderurgicas de Minas Gerais (Brazil, 0.9% of net assets): Produces flat steel and galvanized steel products. While global steel companies have been under pressure, Usiminas has done extremely well. As a supplier of steel to the domestic Brazilian automotive sector, the company is benefiting from the strength in local consumption and Brazil's declining interest rate environment.

Korea Telecom (Korea, 0.5% of net assets): An incumbent fixed-line telecommunication company, Korea Telecom is cheap relative to global peers, and the company is aggressively rolling out broadband lines, which will provide future long-term growth.

3 Past performance is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on offering price (i.e., less any applicable sales charge), for Class A, B and C Shares were (4.77%), (5.08%) and (0.67%), respectively.

4 Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper Analytical Services Inc. as falling into the respective categories indicated. Lipper returns do not take sales charges into account.

What were the fund's country allocations as of May 31, 2000?

The portfolio was well diversified across the following countries:

Country		Percentage of Net Assets
Korea		12.1%
Brazil		10.1%
Mexico		9.1%
Taiwan		8.7%
United States		8.0%
Hong Kong		5.8%
India		5.5%
Turkey		4.3%
South Africa		3.4%
Israel		3.2%
Hungary		3.1%
Russia		2.8%
Egypt		2.7%
Malaysia		2.7%
Country		Percentage of Net Assets
Greece		2.1%
Poland		1.5%
Chile		1.4%
China		1.4%
Argentina		1.1%
Mauritius		1.1%
Thailand		1.1%
Czech Republic		0.6%
Kenya		0.6%
Croatia		0.5%
Indonesia		0.5%
Pakistan		0.4%
Venezuela		0.4%
Ghana		0.3%
Philippines		0.2%
Malawi		0.2%
Zimbabwe		0.1%

What were the fund's top holdings?

Name	Country	Percentage of Net Assets	Industry
Samsung Electronics Co.	Korea	3.52%	Technology Hardware and Equipment
Telefonos de Mexico, Class L, ADR	Mexico	2.87%	Media
China Telecom (Hong Kong) Ltd.	Hong Kong	2.21%	Telecommunication Services
SK Telecom Co. Ltd.	Korea	2.10%	Telecommunication Services
Taiwan Semiconductor Manufacturing Co.	Taiwan	1.87%	Technology Hardware and Equipment
Lukoil Holding Co. ADR	Russia	1.75%	Energy Sources
Mobinil	Egypt	1.43%	Telecommunication Services
United Microelectronics Corp. Ltd.	Taiwan	1.42%	Technology Hardware and Equipment
Tele Norte Leste Participacoes SA, ADR	Brazil	1.40%	Telecommunication Services
Hindustan Lever Ltd.	India	1.40%	Household & Personal Products
TOTAL		19.97%

As we reach the mid-point of 2000, what is your outlook for emerging markets for the rest of the year?

In Asia, we still believe that technology stocks will continue the recent recovery we have witnessed across all markets. The chip companies in Korea and Taiwan have become dominant players in an industry that is consolidating. The demand created by the Internet for new appliances and cellular phones has been a bonanza for chip makers around the globe. We expect this demand to grow at healthy rates for the near future. We have consolidated our positions in this sector into globally competitive market leaders we believe will benefit from this trend.

The expected soft-landing in the United States should end the recent increasing rate environment, a fact that should bode well for both Mexico and Brazil during the second half. Brazil, in fact, is now experiencing rate cuts. In addition, Mexico will benefit by rising oil prices, as well as a successful democratic process. The presidential elections in Mexico should provide a positive catalyst regardless of who wins. Our belief is that Mexico will have a bright future under the new president, benefiting from increased foreign investment and lower levels of corruption. In addition, the country's recent investment upgrade should help attract foreign investment.

Russia should be a beneficiary of higher oil prices as well. In addition, a new decisive leadership under Mr. Putin will provide the first step in restructuring tax codes and restoring investor confidence.

Turkey should also do well in the second half of 2000. With the Turkcell privatization completed in early July, fresh liquidity from foreign investors should drive equity levels there higher.

Globally, we believe that the positive macroeconomic scenario will continue for emerging markets, and as the recent, and unmerited, heightened correlations begin to decline with developed country stock markets, excellent opportunities and returns will follow into this arena.

Portfolio of Investments

MAY 31, 2000 (UNAUDITED)

Shares					Value in U.S. Dollars
			COMMON STOCKS--83.7%
			Automobiles--1.2%
	100,000		Mahindra and Mahindra Ltd., GDR	$	542,500
	20,690	¹	North American Bus Industries		406,431

			TOTAL		948,931

			Banking--8.9%
	10,275		Alpha Credit Bank SA		436,734
	23,200		Banco Santiago ADR		348,000
	250,000		Bank Leumi Le-Israel		545,433
	120,000		Commerce Asset - Holdings Berhad		344,211
	28,000		Commercial International Bank Egypt		289,991
	123,200		Grupo Financiero Banamex Accival, SA de CV, Class O		402,246
	600,000		Grupo Financiero Bancomer, SA de CV		307,886
	100,000		Malayan Banking Berhad		426,316
	62,800		Mauritius Commercial Bank		211,317
	9,050		National Bank of Greece		426,154
	15,800		Nedcor Ltd.		301,492
	11,000		OTP Bank RT		593,434
	370,154	¹	PT Bank Pan Indonesia Tbk, Warrants		43
	26,400		Shinhan Bank		197,503
	549,600		State Bank of Mauritius Ltd.		367,746
	1,900,000		Tansas Izmir Buyukeshir Belediyesi Ic ve Dis Ticaret AS		331,763
	51,000,000		Turkiye Garanti Bankasi AS		654,430
	17,100		Unibanco Uniao de Bancos Brasileiros SA, GDR		413,606
	52,250,000		Yapi ve Kredi Bankasi AS		645,009

			TOTAL		7,243,314

			Building Materials & Components--0.2%
	360,000		China Merchants Holdings International Co., Ltd.		205,589

Shares					Value in U.S. Dollars
			COMMON STOCKS--continued
			Capital Goods--2.4%
	100,000		Alfa, SA de C.V., Class A	$	272,871
	221,942	¹	Aluworks Ghana Ltd.		122,049
	101,000		Citic Pacific Ltd.		479,579
	20,000		Elektrim Spolka Akcyina SA		262,116
	130,000		Grupo Carso SA de CV		396,425
	25,000	¹	Sterlite Industries (India) Ltd.		381,698

			TOTAL		1,914,738

			Commercial Services & Supplies--0.6%
	500,000		Cosco Pacific Ltd.		372,165
	262,000		Education Investment Corp. Ltd.		80,818
	2,475,900		Interfresh		64,561

			TOTAL		517,544

			Consumer Durables & Apparel--0.5%
	1,200,000		Vestel Elektronik Sanayi Ve Ticaret AS		375,213

			Diversified Financials--3.0%
	100,000		AMMB Holdings Bhd		413,158
	100,000		African Bank Investments Ltd.		200,861
	128,000		Beijing Enterprises		129,770
	10,200		Europejski Fundusz Leas, GDR		160,650
	719,280		Home Finance Co. Ltd.		138,440
	15,000		IDB Development Corp. Ltd.		632,942
	21,830	²	Press Corp., GDR		120,065
	123,200		Saambou Holdings Ltd.		186,479
	23,630		Samsung Securities Co., Ltd.		447,704

			TOTAL		2,430,069

			Energy Sources--3.8%
	34,100		AO Tatneft, ADR		351,656
	26,000		Lukoil Holding Co., ADR		1,426,880
	3,000,000	¹	PetroChina Co. Ltd.		608,297
	27,000	²	Polski Koncern Naftowy SA, GDR		253,125
	34,000		Surgutneftegaz		486,200

			TOTAL		3,126,158

Shares					Value in U.S. Dollars
			COMMON STOCKS--continued
			Food & Drug Retailing--1.0%
	650,000		Migros Turk	$	395,923
	782,000		Ng Fung Hong Ltd.		376,335

			TOTAL		772,258

			Food Beverage & Tobacco--2.9%
	12,400		Cheil Jedang Corp.		468,774
	20,000		Coca-Cola Femsa SA, ADR		303,750
	24,000		Compania Cervecerias Unidas SA, ADR		534,000
	71,100		Fomento Economico Mexicano, SA de C.V.		269,148
	14,480	¹	Guiness Ghana Ltd.		2,986
	32,100	¹	International Foods Co. (Hostess)		377,154
	45,000	¹	Nestle India Ltd.		389,462
	67,500	¹	Standard Foods Taiwan Ltd.		42,941

			TOTAL		2,388,215

			Health Care Equipment & Services--0.2%
	30,000		Apollo Hospitals Enterprise Ltd.		135,875

			Hotels Restaurants & Leisure--0.9%
	17,000		Danubius Hotels Rt.		345,566
	108,000		Genting Berhad		403,579
	71,500		Innscor Africa Ltd.		15,847

			TOTAL		764,992

			Household & Personal Products--2.0%
	170,000		Coreana Cosmetics Co. Ltd.		490,659
	20,000		Hindustan Lever Ltd.		1,150,224

			TOTAL		1,640,883

			Insurance--0.2%
	11,000	¹	Enterprise Insurance Co. Ltd.		4,374
	116,394		Swan Insurance Co., Ltd.		178,271

			TOTAL		182,645

			Manufacturing--0.6%
	12,000		Hankuk Electric Glass Co., Ltd.		460,027

Shares					Value in U.S. Dollars
			COMMON STOCKS--continued
			Materials--5.6%
	21,000		Aracruz Cellulose, ADR	$	351,750
	483,461		Athi River Mining Ltd.		37,820
	108,200		Billiton PLC		363,254
	193,200		Cemex SA de C.V.		818,713
	10,000	¹	Cemex SA de C.V., Warrants		5,783
	8,800		Egyptian Financial & Industrial		100,842
	17,500		Grupo Mexico SA, Class B		59,622
	21,770		Impala Platinum Holdings Ltd.		727,749
	42,200		KGHM Polska Miedz SA		307,258
	10,000		Pohang Iron and Steel Co. Ltd., ADR		205,000
	50,000		Sappi Ltd.		373,027
	25,520		Suez Cement Co.		287,035
	18,600		Tiszai Vegyi Kombinat Rt.		277,043
	42,550		Votorantim Celulose e Papel SA, ADR		675,481

			TOTAL		4,590,377

			Media--7.7%
	180,000		ABS-CBN Broadcasting Corp.		183,587
	3,900		Cheil Communications, Inc.		462,683
	30,000,000	¹	Dogan Yayin Holding		548,201
	35,600		Grupo Radio Centro SA - SP, ADR		391,600
	15,000		Grupo Televisa SA, GDR		835,313
	28,493,830		Hurriyet Gazetecilik ve Matbaacilik AS		520,678
	9,200	¹	Lambrakis Media Group		337,782
	70,000		New Straits Times		210,000
	600		Sri Adhikari Brothers Television Network Ltd.		5,824
	100	¹	Sriven Multi-Tech Ltd.		277
	100,000		Star Publications (Malaysia)		392,105
	48,000		Telefonos de Mexico, Class L, ADR		2,337,000

			TOTAL		6,225,050

			Mining--0.4%
	1,816,000		Yanzhou Coal Mining Co., Class H		321,612

Shares					Value in U.S. Dollars
			COMMON STOCKS--continued
			Pharmaceuticals & Biotechnology--2.7%
	4,000		Gedeon Richter RT	$	234,503
	640,000		PT Tempo Scan Pacific Tbk		285,681
	32,800	²	Pliva D.D., GDR		380,552
	42,000		Ranbaxy Laboratories Ltd.		517,937
	14,700		Teva Pharmaceutical Industries Ltd.		737,291

			TOTAL		2,155,964

			Retailing--2.3%
	364,400		Big C Supercenter PLC		139,421
	8,200		Companhia Brasileira de Distribuicao Groupo Pao de Acucar, ADR		246,000
	45,300		Grupo Elektra SA de C.V., GDR		362,400
	375,400		Profurn Ltd.		204,665
	225,000		Siam Makro		249,649
	320,000		Wal-Mart de Mexico		658,843

			TOTAL		1,860,978

			Software & Services--2.5%
	15,000		Aladdin Knowledge Systems		211,875
	1,600	¹	Check Point Software Technologies Ltd.		300,600
	12,000	¹	China.com Corp., Class A		285,750
	3,850	¹	Daum Communications Corp.		274,732
	45,000		Dimension Data Holdings Ltd.		313,128
	37,500	¹	Frontier Information Technology		34,431
	12,000	¹	Graphisoft NV		229,506
	2,240		Infosys Technologies Ltd.		351,067
	31,600	¹	Innosoft Technologies Ltd.		42,334
	400		Software Solutions Integrated		20,039

			TOTAL		2,063,462

			Technology Hardware & Equipment--14.3%
	120,000		Acer Peripherals, Inc.		498,539
	30,000		Ambit Microsystems Corp.		296,008
	43,000		Asustek Computer, Inc.		434,047
	7,100		Intracom SA		296,964
	95,620		Korea Circuit Co.		483,391
	240,000		Legend Holdings Ltd.		243,319
Shares					Value in U.S. Dollars
			COMMON STOCKS--continued
			Technology Hardware & Equipment--continued
	142,000	¹	Macronix International Co. Ltd.	$	440,149
	155,000		Mirae Co.		607,924
	100,000	¹	Pro Mos Technologies, Inc.		428,432
	9,750		Samsung Display Devices		371,182
	10,500		Samsung Electronics Co.		2,863,214
	37,000		Shinawatra Computer Co.		184,977
	35,000	^{1, 2}	Siliconware Precision Industries Co., GDR		363,125
	298,239	¹	Taiwan Semiconductor Manufacturing Co.		1,519,750
	11,520	¹	Taiwan Semiconductor Manufacturing Co., ADR		406,800
	1,128		Trigem Computer, Inc.		23,768
	384,000	¹	United Microelectronics Corp. Ltd.		1,165,336
	40,000	¹	Universal Scientific Industry Co. Ltd.		92,178
	30,000	¹	Via Technologies, Inc.		518,014
	128,560	¹	Winbond Electronics Corp.		388,058

			TOTAL		11,625,175

			Telecommunication Services--16.0%
	30,000		Advanced Information Service PCL		344,344
	240,000	¹	China Telecom (Hong Kong) Ltd.		1,794,090
	10,000		Compania Anonima Nacional Telefonos de Venezuela, Class D, ADR		284,375
	20,000		Compania Telecomunicacion Chile, ADR		395,000
	12,000	¹	Ectel Ltd.		199,500
	12,000	¹	Embratel Participacoes SA, ADR		251,250
	20,000	^{1, 2}	Hellenic Telecommunication Organization SA, ADR		241,250
	1,000		Himachal Futuristic Communications Ltd.		22,309
	22,500	¹	Himachal Futuristic Communications Ltd.		522,772
	5,300		Korea Telecom Corp.		394,157
	63,900		Matav RT		442,553
	28,600	¹	Mobinil		1,174,948
	20,000		PT Telekomunikasi Indonesia, Class CS, ADR		135,000
	650,000		Pakistan Telecommunications Corp., Class A		315,292
	5,000		SK Telecom Co. Ltd.		1,704,294
	24,500	¹	SPT Telecom AS		458,387
	39,200	¹	Tele Centro Oeste Celular Participacoes SA, ADR		399,350
	7,000	¹	Tele Centro Sul Participacoes SA, ADR		420,000
Shares					Value in U.S. Dollars
			COMMON STOCKS--continued
			Telecommunication Services--continued
	58,759		Tele Norte Leste Participacoes SA, ADR	$	1,153,146
	22,650		Telecom Argentina SA, ADR		557,756
	7,000		Telecomunicacoes Brasileiras SA, ADR		810,250
	31,000	¹	Telekomunikacja Polska SA		222,185
	23,000		Videsh Sanchar Nigam Ltd., GDR		359,375
	256,000		Yageo Corp.		448,685

			TOTAL		13,050,268

			Transportation--0.7%
	200,000		Air Mauritius Ltd.		116,032
	4,079,000		Kenya Airways Ltd.		430,768

			TOTAL		546,800

			Utilities--3.1%
	81,700		Companhia Paranaense de Energia-Copel, ADR		658,706
	2,820,000		Companhia de Saneamento Basico do Estado de Sao Paulo		205,471
	20,000		Empresa Nacional Electricidad SA, ADR		236,250
	1,750,000		Huaneng Power International, Inc.		437,935
	15,000		Korea Electric Power Corp.		402,391
	3,800,000	¹	Shandong International Power Development Co., Ltd.		380,378
	2,000,000		Shenyang Public Utility Holdings Co. Ltd.		220,733

			TOTAL		2,541,864

			TOTAL COMMON STOCKS (IDENTIFIED COST $65,466,190)		68,088,001

			PREFERRED STOCKS--3.3%
			Banks--1.1%
	7,350,000		Banco Itau SA, Preference		553,615
	12,020,000		Banco Estado de Sao Paulo, Preference		358,855

			TOTAL		912,470

			Energy--0.8%
	2,692,000		Petroleo Brasileiro SA, Preference		617,884

Shares or Principal Amount					Value in U.S. Dollars
			PREFERRED STOCKS--continued
			Materials--1.4%
	630,000		Companhia Siderurgica Belgo-Mineira	$	54,179
	425,000		Klabin Fabricadora		360,860
	158,700		Usinas Siderurgicas de Minas Gerais SA, Preference		695,481

			TOTAL		1,110,520

			TOTAL PREFERRED STOCKS (IDENTIFIED COST $2,741,766)		2,640,874

			CORPORATE BONDS--0.0%
			Materials--0.0%
	15,900		Companhia Vale Do Rio Doce, Conv. Deb., 12/12/2009 (identified cost $137)		87

			REPURCHASE AGREEMENTS--8.0%³
$	6,530,000		Paribas Corp., 6.58%, dated 5/31/2000, due 6/1/2000 (at amortized cost)		6,530,000

			TOTAL INVESTMENTS (IDENTIFIED COST $74,738,093)	$	77,258,962

1 Non-income producing security.

2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. These securities have been deemed liquid based upon criteria approved by the fund's board of directors. At May 31, 2000, these securities amounted to $1,358,117 which represents 1.7% of net assets.

4 The cost of investments for federal tax purposes amounts to $74,738,093. The net unrealized appreciation of investments on a federal tax basis amounts to $2,520,869 which is comprised of $8,528,277 appreciation and $6,007,408 depreciation at May 31, 2000.

Note: The categories of investments are shown as a percentage of net assets ($81,321,851) at May 31, 2000.

The following acronyms are used throughout this portfolio:

ADR	--American Depositary Receipt
GDR	--Global Depositary Receipt

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

MAY 31, 2000 (UNAUDITED)

Assets:
Total investments in securities, at value (identified and tax cost $74,738,093)			$	77,258,962
Cash				18,608
Cash denominated in foreign currencies (idendified cost $5,173,146)				5,150,853
Income receivable				253,766
Receivable for investments sold				4,630,410
Receivable for shares sold				108,279
Deferred organizational costs				5,684

TOTAL ASSETS				87,426,562

Liabilities:
Payable for investments purchased	$	5,149,538
Payable for shares redeemed		7,973
Payable for taxes withheld		886,797
Accrued expenses		60,403

TOTAL LIABILITIES				6,104,711

Net assets for 6,620,339 shares outstanding			$	81,321,851

Net Assets Consist of:
Paid in capital				$86,802,709
Net unrealized appreciation of investments				2,476,083	¹
Accumulated net realized loss on investments				(7,153,969	)
Accumulated net operating loss				(802,972	)

TOTAL NET ASSETS			$	81,321,851

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net Asset Value Per Share ($60,127,720 ÷ 4,854,621 shares outstanding)				$12.39

Offering Price Per Share (100/94.50 of $12.39)²				$13.11

Redemption Proceeds Per Share				$12.39

Class B Shares:
Net Asset Value Per Share ($18,564,642 ÷ 1,546,790 shares outstanding)				$12.00

Offering Price Per Share				$12.00

Redemption Proceeds Per Share (94.50/100 of $12.00)²				$11.34

Class C Shares:
Net Asset Value Per Share ($2,629,489 ÷ 218,928 shares outstanding)				$12.01

Offering Price Per Share				$12.01

Redemption Proceeds Per Share (99.00/100 of $12.01)²				$11.89

1 Includes $4,210,783 of unrealized appreciation at February 25, 2000, related to the merger of Federated Latin American Growth Fund.

2 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)

Investment Income:
Dividends (net of foreign taxes withheld of $41,590)			$	592,031
Interest				104,086

TOTAL INCOME				696,117

Expenses:
Investment adviser fee	$	518,410
Administrative personnel and services fee		92,501
Custodian fees		165,554
Transfer and dividend disbursing agent fees and expenses		57,874
Directors'/Trustees' fees		856
Auditing fees		9,010
Legal fees		7,161
Portfolio accounting fees		46,696
Distribution services fee--Class B Shares		69,915
Distribution services fee--Class C Shares		10,295
Shareholder services fee--Class A Shares		76,945
Shareholder services fee--Class B Shares		23,305
Shareholder services fee--Class C Shares		3,432
Share registration costs		19,672
Printing and postage		24,323
Insurance premiums		583
Taxes		2,509
Loan commitment fee		597
Interest-line of credit		119
Miscellaneous		10,522

TOTAL EXPENSES		1,140,279

Net operating loss				(444,162	)

Realized and Unrealized Gain on Investments and Foreign Currency:
Net realized gain on investments and foreign currency transactions (net of foreign taxes withheld of $2,736,288)				7,387,122
Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency				(10,533,883	)

Net realized and unrealized gain on investments and foreign currency				(3,146,761	)

Change in net assets resulting from operations			$	(3,590,923	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999
Increase (Decrease) in Net Assets
Operations:
Net investment operating loss	$	(444,162	)	$	(171,634	)
Net realized gain on investments and foreign currency transactions ($7,387,122 and $10,253,629), respectively, as computed for federal tax purposes)		7,387,122			10,228,831
Net change in unrealized appreciation/depreciation of investments and translation of assets and liabilities in foreign currency		(10,533,883	)		8,770,479

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(3,590,923	)		18,827,676

Share Transactions:
Proceeds from sale of shares		51,546,651			50,482,615
Proceeds from shares issued in connection with the merger of Federated Latin American Growth Fund		13,448,203	¹		--
Cost of shares redeemed		(40,653,173	)		(53,497,435	)

CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		24,341,681			(3,014,820	)

Change in net assets		20,750,758			15,812,856

Net Assets:
Beginning of period		60,571,093			44,758,237

End of period	$	81,321,851		$	60,571,093

1 Includes $4,210,783 of unrealized appreciation at February 25, 2000, related to the merger of Federated Latin American Growth Fund.

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,		Year Ended November 30,
	2000		1999		1998		1997		1996	¹
Net Asset Value, Beginning of Period	$12.29		$ 8.40		$11.64		$11.10		$10.00
Income From Investment Operations:
Net investment income (net operating loss)	(0.06	)	(0.01	)	0.03		0.01		0.02
Net realized and unrealized gain (loss) on investments and foreign currency	0.16		3.90		(3.27	)	0.53	²	1.08

TOTAL FROM INVESTMENT OPERATIONS	0.10		3.89		(3.24	)	0.54		1.10

Net Asset Value, End of Period	$12.39		$12.29		$ 8.40		$11.64		$11.10

Total Return³	0.81	%	46.31	%	(28.02	%)	4.86	%	11.00	%


Ratios to Average Net Assets:

Expenses	2.56	%⁴	2.61	%	2.59	%	2.14	%	1.97	%⁴

Net investment income (net operating loss)	(0.89	%)⁴	(0.15	%)	0.30	%	0.13	%	0.31	%⁴

Expense waiver/reimbursement⁵	--		0.59	%	0.25	%	0.65	%	3.34	%⁴

Supplemental Data:

Net assets, end of period (000 omitted)	$60,128		$46,076		$32,002		$48,525		$17,327

Portfolio turnover	232	%	289	%	163	%	102	%	32	%

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 did 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,		Year Ended November 30,
	2000		1999		1998		1997		1996	¹
Net Asset Value, Beginning of Period	$11.95		$ 8.23		$11.50		$11.04		$10.00
Income From Investment Operations:
Net operating loss	(0.00	)²	(0.13	)	(0.08	)	(0.04	)	(0.02	)
Net realized and unrealized gain (loss) on investments and foreign currency	0.05		3.85		(3.19	)	0.50	³	1.06

TOTAL FROM INVESTMENT OPERATIONS	0.05		3.72		(3.27	)	0.46		1.04

Net Asset Value, End of Period	$12.00		$11.95		$ 8.23		$11.50		$11.04

Total Return⁴	0.42	%	45.20	%	(28.56	%)	4.17	%	10.40	%


Ratios to Average Net Assets:

Expenses	3.31	%⁵	3.36	%	3.34	%	2.89	%	2.72	%⁵

Net operating loss	(1.64	%)⁵	(0.90	%)	(0.45	%)	(0.69	%)	(0.71	%)⁵

Expense waiver/reimbursement⁶	--		0.59	%	0.25	%	0.65	%	3.34	%⁵

Supplemental Data:

Net assets, end of period (000 omitted)	$18,565		$12,458		$10,884		$19,951		$3,747

Portfolio turnover	232	%	289	%	163	%	102	%	32	%

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

2 Amount does not round to $(0.01).

3 The amount shown in this caption for a share outstanding did 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,		Year Ended November 30,
	2000		1999		1998		1997		1996	¹
Net Asset Value, Beginning of Period	$11.97		$ 8.23		$11.50		$11.05		$10.00
Income From Investment Operations:
Net operating loss	(0.03	)	(0.15	)	(0.09	)	(0.04	)	(0.02	)
Net realized and unrealized gain (loss) on investments and foreign currency	0.07		3.89		(3.18	)	0.49	²	1.07

TOTAL FROM INVESTMENT OPERATIONS	0.04		3.74		(3.27	)	0.45		1.05

NET ASSET VALUE, END OF PERIOD	$12.01		$11.97		$ 8.23		$11.50		$11.05

Total Return³	0.33	%	45.44	%	(28.62	%)	4.07	%	10.50	%


Ratios to Average Net Assets:

Expenses	3.31	%⁴	3.36	%	3.34	%	2.89	%	2.72	%⁴

Net operating loss	(1.64	%)⁴	(0.90	%)	(0.45	%)	(0.65	%)	(0.77	%)⁴

Expense waiver/reimbursement⁵	--		0.59	%	0.25	%	0.65	%	3.34	%⁴

Supplemental Data:

Net assets, end of period (000 omitted)	$2,629		$2,037		$1,872		$3,943		$847

Portfolio turnover	232	%	289	%	163	%	102	%	32	%

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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

MAY 31, 2000 (UNAUDITED)

ORGANIZATION

Federated World Investment Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act") as an open-end, management investment company. The Corporation consists of nine portfolios. The financial statements included herein are only those of Federated Emerging Markets Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares. The investment objective of the Fund is to provide long-term growth of capital.

On February 25, 2000, the Fund acquired all the assets of the Federated Latin American Growth Fund ("Acquired Fund") pursuant to a plan of reorganization approved by the Acquired Fund's shareholders. The acquisition was accomplished by a tax-free exchange of 841,740 Shares of the Fund (valued at $13,448,203) for the 1,066,252 shares of the Acquired Fund Shares outstanding on February 25, 2000. The Acquired Fund's net assets of $13,448,203 which consisted of $9,237,420 of paid-in capital and $4,210,783 of unrealized appreciation, at that date were combined with those of the Fund. The aggregate net assets of the Fund and the Acquired Fund immediately before the acquisition were $81,315,402 and $13,448,203, respectively. Immediately after the acquisition, the combined aggregate net assets of the Fund were $94,763,605.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

Foreign equity securities are valued according to the last sale price reported in the market in which they are primarily traded. If no sale on a recognized exchange is reported or if the security is traded over-the-counter, the foreign securities are valued at the mean between the last closing bid and asked prices. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturity of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value.

Repurchase Agreements

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Directors (the "Directors"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions

Federal Taxes

Withholding taxes on foreign interest and dividends have been provided for in accordance with the applicable country's tax rules and rates.

At November 30, 1999, the Fund, for federal tax purposes, had a capital loss carryforward of $14,046,073 which will reduce the Fund's taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:

Expiration Year	Expiration Amount
2003	$ 1,565,048	1

2006	$12,481,025

1 Capital loss carryforward is attributable to the acquisition of the assets of The Blanchard Worldwide Emerging Market Fund and is limited to $391,262 that can be used in future periods to offset income arising from net realized gains.

When-Issued and Delayed Delivery Transactions

Foreign Exchange Contracts

At May 31, 2000, the Fund had no outstanding foreign currency commitments.

Foreign Currency Translation

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities; sales and maturities of short-term securities; sales of FCs; currency gains or losses realized between the trade and settlement dates on securities transactions; the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books; and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Directors. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Fund's pricing committee.

Use of Estimates

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2000, par value shares ($0.001 per share) authorized were as follows:

Class Name		Number of Par Value Capital Stock Authorized
Class A Shares		100,000,000
Class B Shares		100,000,000
Class C Shares		100,000,000
TOTAL		300,000,000

Transactions in capital stock were as follows:

	Six Months Ended May 31, 2000					Year Ended November 30, 1999
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	3,138,516		$	42,621,583		4,209,107		$	44,005,028
Shares issued in connection with the merger of Federated Latin American Growth Fund	458,808			7,428,081		--			--
Shares redeemed	(2,491,174	)		(37,345,680	)	(4,270,739	)		(43,904,255	)

NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	1,106,150		$	12,703,984		(61,632	)	$	100,773


	Six Months Ended May 31, 2000					Year Ended November 30, 1999
Class B Shares:	Shares			Amount		Shares			Amount
Shares sold	322,788		$	6,821,450		561,635		$	5,909,875
Shares issued in connection with the merger of Federated Latin American Growth Fund	341,493			5,368,279		--			--
Shares redeemed	(159,624	)		(2,283,064	)	(842,656	)		(8,437,675	)

NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	504,657		$	6,822,050		(281,021	)	$	(2,527,800	)


	Six Months Ended May 31, 2000					Year Ended November 30, 1999
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	77,078		$	977,450		57,391		$	567,712
Shares issued in connection with the merger of Federated Latin American Growth Fund	41,439			651,843		--			--
Shares redeemed	(69,847	)		(1,024,429	)	(114,622	)		(1,155,505	)

NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	48,670		$	604,864		(57,231	)	$	(587,793	)

NET CHANGE RESULTING FROM SHARE TRANSACTIONS	1,659,477		$	20,130,898		(399,884	)	$	(3,014,820	)

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Global Investment Management Corp., the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 1.25% of the Fund's average daily net assets.

Administrative Fee

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Class A Shares, Class B Shares and Class C Shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC.

Share Class Name		Percentage of Average Daily Net Assets of Class
Class A Shares		0.25%
Class B Shares		0.75%
Class C Shares		0.75%

Class A Shares did not incur a distribution services fee for the six-month period ended May 31, 2000, and has no present intention of paying or accruing a distribution services fee.

Shareholder Services Fee

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

Organizational Expenses

Organizational expenses of $48,748 were borne initially by the Adviser. The Fund has reimbursed the Adviser for the expenses. These expenses have been deferred and are being amortized over the five-year period following the Fund's effective date. For the six-month period ended May 31, 2000, the Fund expensed $6,339 of organizational expenses.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the six-month period ended May 31, 2000, were as follows:

Purchases	$	180,615,404

Sales	$	179,384,234

CONCENTRATION OF CREDIT RISK

LINE OF CREDIT

Effective November 29, 1999, the Corporation entered into a $75,000,000 unsecured committed revolving line of credit ("LOC") agreement with the State Street Corporation. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.50% over the federal funds rate. The LOC includes a commitment fee of 0.08% per annum on the daily unused portion. As of May 31, 2000, there were no outstanding loans.

During the six-month period ended May 31, 2000, the maximum outstanding borrowings were $1,180,548. The Fund had an average outstanding daily balance of $527,881 with a high and low interest rate of 6.25% and 6.00%, respectively, representing only the days that the LOC was utilized. Interest expense totaled $119 for the six-month period ended May 31, 2000.

Directors

JOHN F. DONAHUE

THOMAS G. BIGLEY

JOHN T. CONROY, JR.

NICHOLAS P. CONSTANTAKIS

JOHN F. CUNNINGHAM

J. CHRISTOPHER DONAHUE

LAWRENCE D. ELLIS, M.D.

PETER E. MADDEN

CHARLES F. MANSFIELD, JR.

JOHN E. MURRAY, JR., J.D., S.J.D.

MARJORIE P. SMUTS

JOHN S. WALSH

Officers

JOHN F. DONAHUE

Chairman

RICHARD B. FISHER

President

HENRY A. FRANTZEN

Chief Investment Officer

J. CHRISTOPHER DONAHUE

Executive Vice President

EDWARD C. GONZALES

Executive Vice President

JOHN W. MCGONIGLE

Executive Vice President and Secretary

RICHARD J. THOMAS

Treasurer

G. ANDREW BONNEWELL

Assistant Secretary

Federated
World-Class Investment Manager

SEMI-ANNUAL REPORT

AS OF MAY 31, 2000

Federated Emerging Markets Fund

Established 1996

4TH SEMI-ANNUAL REPORT

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

Cusip 31428U409
Cusip 31428U508
Cusip 31428U607

G01967-02 (7/00)

Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.

Federated Investors
World-Class Investment Manager

Richard B. Fisher

President

Federated Global Equity Income Fund

President's Message

Dear Fellow Shareholder:

Federated Global Equity Income Fund was created in 1998, and I am pleased to present its second Semi-Annual Report. As of May 31, 2000, the fund's net assets were $56 million and were invested in more than 100 corporations in 13 countries with a median market capitalization of over $30 billion.¹ These corporations have strong earnings and a history of dividend payments to shareholders. The fund's shareholders can easily recognize a majority of the fund's holdings. The fund is managed for long-term growth of capital and offers shareholders significant opportunities for capital appreciation and income by investing in high-quality corporations from around the world.

This report covers the six-month reporting period from December 1, 1999 through May 31, 2000. It begins with an interview with Richard J. Lazarchic, Vice President, who co-manages the fund with Richard M. Winkowski, both of Federated Global Investment Management Corp. Following their discussion covering the fund's objective, strategy, and market conditions are two additional items of shareholder interest. First is a complete listing of the fund's investments, and second is the publication of the fund's financial statements.

It was a volatile period for stocks in general, as technology holdings turned downward during the reporting period. However, prudent stock selection allowed the fund to post strong returns for the period which were well ahead of the average global equity income fund and the fund's benchmark index. Individual share class total return performance for the six-month reporting period, including realized gains, is as follows:²

	Total Return	Capital Gains	Net Asset Value Change
Class A Shares	10.41%	$2.21	$14.36 to $13.63 = (5.08%)
Class B Shares	10.15%	$2.21	$14.29 to $13.52 = (5.39%)
Class C Shares	10.17%	$2.21	$14.27 to $13.50 = (5.40%)

1 International investing involves special risks including currency risk, increased volatility of foreign securities, and differences in auditing and other financial standards.

2 Performance quoted is based on net asset value, represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on offering price (i.e., less any applicable sales charge), for Class A, B and C Shares were 4.31%, 4.94% and 9.23%, respectively.

I recommend adding to your account on a regular basis to take advantage of price fluctuations and to use the dollar-cost averaging method of investing.³ By investing the same amount on a regular basis, you buy more fund shares when prices are low and fewer when prices are high. Adding to your account is a convenient, painless way to "pay yourself first" and enjoy the benefit of compounding.

Thank you for your investment in Federated Global Equity Income Fund and for the confidence you have placed in our firm, and I urge you to review this semi-annual report.

Sincerely,

Richard B. Fisher

Richard B. Fisher
President
July 15, 2000

3 Systematic investing does not assure a profit or protect against loss in declining markets. Because dollar-cost averaging involves continuous investment regardless of fluctuating price levels, investors should consider their financial ability to continue purchases during periods of low price levels.

Richard J. Lazarchic, CFA

Vice President

Federated Global Investment Management Corp.

Richard M. Winkowski

Vice President

Federated Global Investment Management Corp.

Investment Review

What is your review of the global equity marketplace during the first half of the fund's fiscal year?

The equity markets in most of the developed countries were divided into different but distinctive periods. The periods roughly approximated a one-month period for the "new economy" technology stocks and a three-month period for the "old economy" stocks with volatility narrowing in both areas since mid-year 2000. The NASDAQ market, and its clones worldwide, reached a double-top in March 2000, followed by a rapid decline through April, with a bottoming in late May. This took the NASDAQ from a level of over 5000 to a level slightly over 3000 in about two months, as excess Year 2000-related Federal Reserve Board (the "Fed") liquidity was reversed, and investors actually began to worry about the earnings in the price-to-earnings ratios. After a short respite, the market gained almost 20% in two days as a feeding frenzy of cash came off the sidelines.

The Dow Jones Industrial Average, and its more developed clones, followed a different track. The Dow peaked in mid-January, bottomed in mid-March, and gained ground profusely, while the NASDAQ was declining from then until mid-April when it got to within 5% of its peak. The NASDAQ then drifted in a narrowing range through the end of May.

Like the proceeding period, the technology, media and telecommunications sectors ("TMT") have been the most volatile markets both on the downside and on the upside. However, again, Europe and the United States continued to differ due probably more to higher valuations overseas than to a scarcity factor. TMT sectors have declined in value more and remained devalued longer.

In the more traditional areas outside of TMT, we have also seen a divergence of winners and losers due to differing valuation levels and the timing of deregulation and/or adaptation of new technologies.

Since we continue to find it difficult to locate good companies at reasonable valuations outside the United States, the fund has concentrated its efforts in the domestic market.

How did the fund perform against its benchmarks?

Federated Global Equity Income Fund produced a six-month total return of 10.41% for Class A Shares based on net asset value. The total returns for Class B Shares and Class C Shares based on net asset value were 10.15% and 10.17%, respectively.¹ Federated Global Equity Income Fund outperformed both its index and peer group during the six-month reporting period, as the fund's returns were greater than the 2.05% return of the Morgan Stanley Capital International World Equity Index² and the 5.61% return of the 64 global equity funds tracked by Lipper Analytical Services, Inc.³

Like the NASDAQ, which the fund emulated quite closely on the upside, the fund had a re-rating in the mid-March to mid-April time period. Even though we were dampening down the volatility in the fund during the first quarter and accelerated it when the market peaked, the fund was caught in the initial downdraft and failed to catch the updraft of the Dow Jones Industrial Average. Since then, we have increased the fund's exposure substantiality to the consumer staples, financials, energy and utility sectors and have reduced the telecommunications holdings and readdressed some technology issues held in the fund.

What were the fund's top ten holdings as of May 31, 2000, and how were the assets allocated among different countries?

Name	Country	Percentage of Net Assets
General Electric Co.	United States	2.70%
Enron Corp.	United States	2.13%
Warner-Lambert Co.	United States	1.90%
Royal Dutch Petroleum Co., ADR	Netherlands	1.68%
Total SA	France	1.66%
Fannie Mae	United States	1.57%
Mellon Financial Corp.	United States	1.55%
Bristol-Myers Squibb Co.	United States	1.53%
Dynegy, Inc.	United States	1.53%
Williams Cos., Inc. (The)	United States	1.51%
TOTAL		17.76%

1 Performance quoted is based on net asset value, represents past performance and is no guarantee of future results. Investment return and principal value will fluctuate so an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on offering price (i.e., less any applicable sales charge), for Class A, B, and C Shares were 4.31%, 4.94%, and 9.23%, respectively.

2 The MSCI World Equity Index is an unmanaged index that reflects the stock markets of 22 countries including the United States, Europe, Canada, Australia, New Zealand, and the Far East comprising approximately 1,482 securities with values expressed in U.S. dollars. Investments cannot be made in an index.

3 Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper Analytical Services, Inc. as falling into the category indicated. Lipper returns do not take sales charges into account.

The fund's assets were allocated as follows:

Country		Percentage of Net Assets
United States		89.5%
France		3.7%
Netherlands		3.2%
Spain		1.4%
Germany		1.2%
United Kingdom		1.2%
Canada		0.9%
Australia		0.8%
Finland		0.7%
Sweden		0.7%
Japan		0.7%
Portugal		0.5%
New Zealand		0.5%

What were some of the fund's recent purchases?

Our recent purchases included the following:

Mellon Financial Corp. (United States; Banking; 1.55% of portfolio): Mellon provides wealth management and global asset management for individual and institutional investors. The company also provides global investment services for businesses and institutions, as well as custody, retirement, and benefits consulting services. In addition, Mellon offers banking services for individuals, businesses, and institutions.

Calpine Corp. (United States; Utility; 1.38% of portfolio): Calpine acquires, develops, owns, and operates power generation facilities, and also sells electricity in the United States. In addition, the company provides thermal energy for industrial customers.

Anheuser-Busch Cos., Inc. (United States; Food and Beverage: 1.48% of portfolio): Anheuser-Busch produces and distributes beer under brand names such as Budweiser, Michelob, and Busch. The company also manufactures beverage cans, recycles aluminum cans for conversion into new can sheet, manufactures labels, and operates rice milling and barley seed processing plants. In addition, Anheuser-Busch owns and operates theme parks.

Johnson & Johnson (United States; Pharmaceuticals & Biotechnology: 1.36% of portfolio): Johnson & Johnson manufactures health care products and provides related services. The company sells its products to the consumer, pharmaceutical and professional markets in countries around the world. Johnson & Johnson's principal consumer products include Band-Aid adhesive bandages, Tylenol acetaminophen products and Johnson's baby products.

What is your outlook for global equity stocks and strategy for the fund as we reach the mid-point of 2000?

Although there continues to be an above average amount of volatility in the markets, it has narrowed substantially in the last two months. Selected new economy technology names continue to outperform their old economy brethren, but the Fed's actions have put an element of risk to the financial landscape.

Historians and skeptics can scare you severely with market jargon about current valuations and growth rates compared to previous cycles, but evolutionary changes taking place worldwide puts us more at the beginning than at the end of a technology-driven world.

Arguing about whether the glass is half full or half empty is a subject for academics, but in the real world of investing, one needs to take a stand. Ours is that this third coming of a major technology change within our lifetimes, as well as the previous changes that have taken place politically and economically worldwide, will prolong our current investment cycle. This is why we have tried to utilize both out-of-favor and maybe out-of-sync consumer stocks, as well as the higher-than-normal energy, and even the higher yet valued technology stocks in our portfolio.

Portfolio of Investments

MAY 31, 2000 (UNAUDITED)

Shares

Value

COMMON STOCKS--100.1%

Banking--3.9%

8,900

Bank America Corp.

494,506

8,700

Bank of New York Co., Inc.

408,356

11,200

Fleet Boston Financial Corp.

423,500

22,500

Mellon Financial Corp.

867,656

TOTAL

2,194,018

Broadcasting & Publishing--4.5%

7,500

AT&T Corp. - Liberty Media Group, Inc., Class A

332,344

7,500

Clear Channel Communications, Inc.

561,562

3,700

General Motors Corp., Class H

364,219

10,100

News Corp. Ltd., ADR

460,181

23,000

Spanish Broadcasting System, Inc.

391,000

6,700

Viacom, Inc., Class B

415,400

TOTAL

2,524,706

Business & Public Service--0.5%

5,300

America Online, Inc.

280,900

Commercial Services--1.1%

7,108

Dycom Industries, Inc.

344,294

177,000

Waste Management NZ Ltd.

279,464

TOTAL

623,758

Consumer Discretionary--3.3%

9,900

Home Depot, Inc.

483,244

8,900

McGraw-Hill Cos., Inc.

457,794

11,000

Tandy Corp.

466,813

8,000

Wal-Mart Stores, Inc.

461,000

TOTAL

1,868,851

Data Processing & Reproduction--1.6%

10,700

Convergys Corp.

480,831

5,800

DST Systems, Inc.

435,362

TOTAL

916,193

Electrical & Electronics--2.9%

7,900

Nokia Oyj, Class A, ADR

410,800

3,690

Nortel Networks Corp.

196,483

Shares

Value

COMMON STOCKS--continued

Electrical & Electronics--continued

2,600

Qualcomm, Inc.

172,575

1,300

Sony Corp.

117,683

5,525

STMicroelectronics NV

329,376

19,000

Telefonaktiebolaget LM Ericsson, Class B, ADR

389,500

TOTAL

1,616,417

Electronic Components, Instruments--3.7%

10,500

ASM Lithography Holding NV, ADR

373,406

4,350

Applied Materials, Inc.

363,225

5,900

Cisco Systems, Inc.

335,931

3,000

EMC Corp. Mass

348,937

3,700

Intel Corp.

461,344

4,300

KLA-Tencor Corp.

213,119

TOTAL

2,095,962

Energy--6.5%

7,400

Coastal Corp.

454,175

4,200

Exxon Mobil Corp.

349,912

23,000

MCN Energy Group, Inc.

524,688

19,000

Repsol SA

405,395

15,100

Royal Dutch Petroleum Co., ADR

942,806

5,900

Total SA

929,694

TOTAL

3,606,670

Financials--9.2%

5,600

Chase Manhattan Corp.

418,250

10,500

Citigroup, Inc.

652,969

14,600

Fannie Mae

877,825

13,800

Federal Home Loan Mortgage Corp.

614,100

11,000

Firstar Corp.

281,187

7,300

Franklin Resources, Inc.

219,000

8,000

ING Group N.V.

478,491

2,650

Lehman Brothers Holdings, Inc.

204,547

4,000

Merrill Lynch & Co., Inc.

394,500

6,500

PNC Bank Corp.

327,438

7,200

Schwab (Charles) Corp.

207,000

11,000

Wells Fargo Co.

497,750

TOTAL

5,173,057

Shares

Value

COMMON STOCKS--continued

Food & Household Products--9.8%

10,700

Anheuser-Busch Cos., Inc.

829,250

14,200

Coca-Cola Co.

757,925

9,500

Coors Adolph Co., Class B

534,375

16,800

General Mills, Inc.

666,750

12,000

Keebler Foods Co.

435,000

16,500

McDonald's Corp.

590,906

16,300

Molson Cos. Ltd., Class A

282,929

16,800

PepsiCo, Inc.

683,550

5,550

Quaker Oats Co.

408,272

10,800

Tricon Global Restaurants, Inc.

316,575

TOTAL

5,505,532

Health & Personal Care--11.0%

5,500

Amgen, Inc.

349,937

15,600

Bristol-Myers Squibb Co.

858,975

17,000

Celltech PLC

247,339

8,500

Johnson & Johnson

760,750

2,150

Medimmune, Inc.

334,056

10,300

Merck & Co., Inc.

768,638

12,800

Pharmacia Corp.

664,800

14,500

Schering Plough Corp.

701,438

8,700

Warner-Lambert Co.

1,062,488

9,600

Watson Pharmaceuticals, Inc.

423,600

TOTAL

6,172,021

Industrials--1.2%

6,300

Emerson Electric Co.

371,700

1,940

Siemens AG

284,538

TOTAL

656,238

Information Technology--4.4%

11,200

Compaq Computer Corp.

294,000

3,900

Computer Sciences Corp.

374,156

7,400

Electronic Data Systems Corp.

475,912

4,900

Gateway, Inc.

242,550

6,400

iGATE Capital Corp.

437,600

Shares

Value

COMMON STOCKS--continued

Information Technology--continued

2,600

Oracle Corp.

186,875

13,500

SunGard Data Systems, Inc.

458,156

TOTAL

2,469,249

Insurance--1.5%

5,500

AXA

810,733

Multi-Industry--3.5%

28,700

General Electric Co.

1,510,337

9,000

Tyco International Ltd.

423,563

TOTAL

1,933,900

Technology Hardware & Equipment--3.7%

2,700

Corning, Inc.

522,281

6,900

Dell Computer Corp.

297,562

4,600

International Business Machines Corp.

493,638

4,700

Plantronics, Inc.

401,263

4,400

Sun Microsystems, Inc.

337,150

TOTAL

2,051,894

Telecommunications--11.4%

5,100

Allegiance Telecom, Inc.

269,662

16,100

Cable & Wireless Communications PLC

268,707

2,200

Exodus Communications, Inc.

155,237

9,500

GTE Corp.

600,875

9,600

Global Crossing Ltd.

240,600

4,200

Level 3 Communications, Inc.

320,513

13,000

MCI Worldcom, Inc.

489,125

1,550

Mannesmann AG

404,900

19,500

McLeodUSA, Inc., Class A

390,000

11,800

Metromedia Fiber Network, Inc.

365,063

3,900

NEXTLINK Communications, Inc.

273,244

Nippon Telegraph & Telephone Corp.

261,455

26,800

Portugal Telecom SA

292,536

8,200

Qwest Communications International, Inc.

346,963

12,656

SBC Communications, Inc.

552,909

18,081

Telefonica SA

371,111

35,740

Vodafone AirTouch PLC

163,167

Shares

Value

COMMON STOCKS--continued

Telecommunications--continued

7,400

Western Wireless Corp., Class A

353,813

8,175

WinStar Communications, Inc.

231,966

TOTAL

6,351,846

Telecommunications Equipment--1.5%

3,000

Harmonic, Inc.

134,062

12,500

Lucent Technologies, Inc.

717,188

TOTAL

851,250

Utilities--14.9%

7,500

AES Corp.

654,375

26,000

CMS Energy Corp.

591,500

7,300

Calpine Corp.

773,344

12,800

Columbia Energy Group

828,000

9,900

Duke Energy Corp.

576,675

11,100

Dynegy, Inc.

856,087

15,000

El Paso Energy Corp.

772,500

16,400

Enron Corp.

1,195,150

8,700

FPL Group, Inc.

430,650

27,500

KeySpan Corp.

838,750

20,400

Williams Cos., Inc. (The)

847,875

TOTAL

8,364,906

TOTAL COMMON STOCKS (IDENTIFIED COST $54,915,594)

56,068,101

MUTUAL FUND--4.9%²

2,769,219

Prime Value Obligations Fund, Class IS (at net asset value)

2,769,219

TOTAL INVESTMENTS (IDENTIFIED COST $57,684,813)³

58,837,320

1 Non-income producing security.

2 Pursuant to an exemptive order, the fund may invest in Prime Value Obligations Fund which is managed by Federated Investment Management Company, an affiliate of the fund's adviser. The adviser has agreed to reimburse certain investment adviser fees as a result of these transactions.

3 The cost of investments for federal tax purposes amounts to $57,684,813. The net unrealized appreciation of investments on a federal tax basis amounts to $1,152,507 which is comprised of $4,159,945 appreciation and $3,007,438 depreciation at May 31, 2000.

Note: The categories of investments are shown as a percentage of net assets ($56,025,860) at May 31, 2000.

The following acronym is used throughout this portfolio:

ADR	--American Depositary Receipt

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

MAY 31, 2000 (UNAUDITED)

Assets:

Total investments in securities, at value (identified and tax cost $57,684,813)

58,837,320

Cash

17,816

Cash denominated in foreign currencies (identified cost $6,873)

6,962

Income receivable

66,943

Receivable for investments sold

1,668,262

Receivable for shares sold

248,270

TOTAL ASSETS

60,845,573

Liabilities:

Payable for investments purchased

4,743,467

Payable for shares redeemed

28,562

Accrued expenses

47,684

TOTAL LIABILITIES

4,819,713

Net assets for 4,114,162 shares outstanding

56,025,860

Net Assets Consist of:

Paid-in capital

50,205,905

Net unrealized appreciation of investments and translation of assets and liabilities in foreign currency

1,148,200

Accumulated net realized gain on investments and foreign currency transactions

4,999,389

Accumulated net operating loss

(327,634

)

TOTAL NET ASSETS

56,025,860

Net Asset Value, Offering Price and Redemption Proceeds Per Share

Class A Shares:

Net Asset Value Per Share ($50,344,868 ÷ 3,693,732 shares outstanding)

$13.63

Offering Price Per Share (100/94.50 of $13.63)¹

$14.42

Redemption Proceeds Per Share

$13.63

Class B Shares:

Net Asset Value Per Share ($3,802,413 ÷ 281,251 shares outstanding)

$13.52

Offering Price Per Share

$13.52

Redemption Proceeds Per Share (94.50/100 of $13.52)¹

$12.78

Class C Shares:

Net Asset Value Per Share ($1,878,579 ÷ 139,179 shares outstanding)

$13.50

Offering Price Per Share

$13.50

Redemption Proceeds Per Share (99.00/100 of $13.50)¹

$13.37

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)

Investment Income:

Dividends (net of foreign taxes withheld of $6,770)

166,278

Interest

56,116

TOTAL INCOME

222,394

Expenses:

Investment adviser fee

248,598

Administrative personnel and services fee

92,501

Custodian fees

12,254

Transfer and dividend disbursing agent fees and expenses

52,220

Auditing fees

7,308

Legal fees

3,282

Portfolio accounting fees

39,343

Distribution services fee--Class A Shares

57,897

Distribution services fee--Class B Shares

9,207

Distribution services fee--Class C Shares

3,552

Shareholder services fee--Class A Shares

57,897

Shareholder services fee--Class B Shares

3,069

Shareholder services fee--Class C Shares

1,184

Share registration costs

25,039

Printing and postage

20,847

Insurance premiums

765

Taxes

1,968

Miscellaneous

2,394

TOTAL EXPENSES

639,325

Waiver:

Waiver of investment adviser fee

(132,537

)

Net expenses

506,788

Net operating loss

(284,394

)

Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:

Net realized gain on investments and foreign currency transactions

5,026,104

Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency

(2,747,793

)

Net realized and unrealized gain on investments and foreign currency transactions

2,278,311

Change in net assets resulting from operations

1,993,917

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Six Months
Ended
(unaudited)
May 31,
2000

Year Ended
November 30,
1999

Increase (Decrease) in Net Assets

Operations:

Net operating loss

(284,394

)

(154,625

)

Net realized gain on investments and foreign currency transactions ($5,026,104 and $5,697,730, respectively, as computed for federal tax purposes)

5,026,104

5,656,519

Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency

(2,747,793

)

2,936,562

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS

1,993,917

8,438,456

Distributions to Shareholders:¹

Distributions from net investment income

Class A Shares

(19,389

)

Distributions from net realized gain on investments and foreign currency transactions

Class A Shares

(5,348,241

)

(14,020

)

Class B Shares

(189,501

)

Class C Shares

(30,263

)

CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS

(5,568,005

)

(33,409

)

Share Transactions:

Proceeds from sale of shares

25,136,421

11,245,353

Net asset value of shares issued to shareholders in payment of distributions declared

5,193,839

32,098

Cost of shares redeemed

(6,283,790

)

(2,987,531

)

CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS

24,046,470

8,289,920

Change in net assets

20,472,382

16,694,967

Net Assets:

Beginning of period

35,553,478

18,858,511

End of period

56,025,860

35,553,478

1 Distributions from net investment income and distributions from net realized gain on investments and foreign currency transactions did not round to $1.00 for Class B Shares or Class C Shares for the fiscal year ended November 30, 1999 due to the low number of shares outstanding of Class B Shares and Class C Shares on the record date of the distributions.

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended
November 30,

Period Ended
November 30,

2000

1999

1998

Net Asset Value, Beginning of Period

$14.36

$10.55

$10.00

Income From Investment Operations:

Net investment income (net operating loss)

(0.08

)²

(0.07

)²

0.01

Net realized and unrealized gain on investments and foreign currency transactions

1.56

3.90

0.54

TOTAL FROM INVESTMENT OPERATIONS

1.48

3.83

0.55

Less Distributions:

Distributions from net investment income

(0.01

)

Distributions from net realized gain on investments and foreign currency transactions

(2.21

)

(0.01

)

TOTAL DISTRIBUTIONS

(2.21

)

(0.02

)

Net Asset Value, End of Period

$13.63

$14.36

$10.55

Total Return³

10.41

36.34

5.50

Ratios to Average Net Assets:

Expenses

2.00

%⁴

2.00

%⁴

Net investment income (net operating loss)

(1.12

%)⁴

(0.58

0.44

%⁴

Expense waiver/reimbursement⁵

0.53

%⁴

1.37

4.07

%⁴

Supplemental Data:

Net assets, end of period (000 omitted)

$50,345

$34,303

$18,858

Portfolio turnover

122

187

1 Reflects operations for the period from October 27, 1998 (date of initial public investment) to November 30, 1998.

2 Per share amount 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended
November 30,

2000

1999

Net Asset Value, Beginning of Period

$14.29

$10.55

Income From Investment Operations:

Net operating loss

(0.11

)²

(0.15

)²

Net realized and unrealized gain on investments and foreign currency transactions

1.55

3.91

TOTAL FROM INVESTMENT OPERATIONS

1.44

3.76

Less Distributions:

Distributions from net investment income

(0.01

)

Distributions from net realized gain on investments and foreign currency transactions

(2.21

)

(0.01

)

TOTAL DISTRIBUTIONS

(2.21

)

(0.02

)

Net Asset Value, End of Period

$13.52

$14.29

Total Return³

10.15

35.62

Ratios to Average Net Assets:

Expenses

2.50

%⁴

2.50

Net operating loss

(1.50

%)⁴

(1.08

Expense waiver/reimbursement⁵

0.53

%⁴

1.37

Supplemental Data:

Net assets, end of period (000 omitted)

$3,802

$1,060

Portfolio turnover

122

187

1 Financial Highlights for Class B Shares are not presented for the period from October 27, 1998 (start of performance) to November 30, 1998, as Class B Shares had no public investments during that period.

2 Per share amount 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended
November 30,

2000

1999

Net Asset Value, Beginning of Period

$14.27

$10.55

Income From Investment Operations:

Net operating loss

(0.10

)²

(0.16

)²

Net realized and unrealized gain on investments and foreign currency transactions

1.54

3.90

TOTAL FROM INVESTMENT OPERATIONS

1.44

3.74

Less Distributions:

Distributions from net investment income

(0.01

)

Distributions from net realized gain on investments and foreign currency transactions

(2.21

)

(0.01

)

TOTAL DISTRIBUTIONS

(2.21

)

(0.02

)

Net Asset Value, End of Period

$13.50

$14.27

Total Return³

10.17

35.43

Ratios to Average Net Assets:

Expenses

2.50

%⁴

2.50

Net operating loss

(1.40

%)⁴

(1.08

Expense waiver/reimbursement⁵

0.53

%⁴

1.37

Supplemental Data:

Net assets, end of period (000 omitted)

$1,879

$191

Portfolio turnover

122

187

1 Financial Highlights for Class C Shares are not presented for the period from October 27, 1998 (start of performance) to November 30, 1998, as Class C Shares had no public investments during that period.

2 Per share amount 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

MAY 31, 2000 (UNAUDITED)

ORGANIZATION

Federated World Investment Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Corporation consists of nine portfolios. The financial statements included herein are only those of Federated Global Equity Income Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held.

The Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares. The Fund's objective is to provide capital appreciation and above-average income.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuations

Listed equity securities are valued at the last sale price reported on a national securities exchange. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. Investments in other open-end regulated investment companies are valued at net asset value. With respect to valuation of foreign securities, trading in foreign cities may be completed at times which vary from the closing of the New York Stock Exchange. Therefore, foreign securities are valued at the latest closing price on the exchange on which they are traded prior to the closing of the New York Stock Exchange. Foreign securities quoted in foreign currencies are translated into U.S. Dollars at the foreign exchange rate in effect at noon, eastern time, on the day the value of the foreign security is determined.

Investment Income, Expenses and Distributions

Federal Taxes

Withholding taxes on foreign interest and dividends have been provided for in accordance with the applicable country's tax rules and rates.

When-Issued and Delayed Delivery Transactions

Foreign Exchange Contracts

Foreign Currency Translation

Use of Estimates

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2000, par value shares ($0.001 per share) authorized were as follows:

Share Class Name		Number of Par Value Capital Stock Authorized
Class A Shares		100,000,000
Class B Shares		100,000,000
Class C Shares		100,000,000
TOTAL		300,000,000

Transactions in capital stock were as follows:

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class A Shares:

Shares

Amount

Shares

Amount

Shares sold

1,238,398

18,540,330

737,809

8,916,311

Shares issued to shareholders in payment of distributions declared

368,179

4,974,095

2,918

32,098

Shares redeemed

(301,874

)

(4,464,107

)

(138,629

)

(1,706,232

)

NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS

1,304,703

19,050,318

602,098

7,242,177

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class B Shares:

Shares

Amount

Shares

Amount

Shares sold

206,200

3,157,588

74,673

918,828

Shares issued to shareholders in payment of distributions declared

14,109

189,491

Shares redeemed

(13,198

)

(193,804

)

(543

)

(7,113

)

NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS

207,111

3,153,275

74,130

911,715

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class C Shares:

Shares

Amount

Shares

Amount

Shares sold

231,495

3,438,503

107,962

1,410,214

Shares issued to shareholders in payment of distributions declared

2,258

30,253

Shares redeemed

(107,930

)

(1,625,879

)

(94,616

)

(1,274,186

)

NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS

125,823

1,842,877

13,346

136,028

NET CHANGE RESULTING FROM SHARE TRANSACTIONS

1,637,637

24,046,470

689,574

8,289,920

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Administrative Fee

Distribution Services Fee

Share Class Name		Percentage of Average Daily Net Assets of Class
Class A Shares		0.25%
Class B Shares		0.75%
Class C Shares		0.75%

Shareholder Services Fee

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the period ended May 31, 2000, were as follows:

Purchases	$	76,651,497

Sales	$	58,736,006

CONCENTRATION OF CREDIT RISK

LINE OF CREDIT AGREEMENT

Directors

JOHN F. DONAHUE

THOMAS G. BIGLEY

JOHN T. CONROY, JR.

NICHOLAS P. CONSTANTAKIS

JOHN F. CUNNINGHAM

J. CHRISTOPHER DONAHUE

LAWRENCE D. ELLIS, M.D.

PETER E. MADDEN

CHARLES F. MANSFIELD, JR.

JOHN E. MURRAY, JR., J.D., S.J.D.

MARJORIE P. SMUTS

JOHN S. WALSH

Officers

JOHN F. DONAHUE

Chairman

RICHARD B. FISHER

President

HENRY A. FRANTZEN

Chief Investment Officer

J. CHRISTOPHER DONAHUE

Executive Vice President

EDWARD C. GONZALES

Executive Vice President

JOHN W. MCGONIGLE

Executive Vice President and Secretary

RICHARD J. THOMAS

Treasurer

G. ANDREW BONNEWELL

Assistant Secretary

Federated
World-Class Investment Manager

SEMI-ANNUAL REPORT

AS OF MAY 31, 2000

Federated Global Equity Income Fund

Established 1998

2ND SEMI-ANNUAL REPORT

Federated
Federated Global Equity Income Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated Securities Corp., Distributor

Cusip 31428U870
Cusip 31428U862
Cusip 31428U854

G02336-05 (7/00)

Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.

Federated Investors
World-Class Investment Manager

Richard B. Fisher

President

Federated Global Financial Services Fund

President's Message

Dear Fellow Shareholder:

Federated Global Financial Services Fund was created in 1998, and I am pleased to present its second Semi-Annual Report. As of May 31, 2000, the fund's net assets of $28.3 million were invested in over 90 issues, of which almost 68% was invested in domestic securities. This fund offers investors the opportunity for capital appreciation and dividend growth by investing in financial services companies including banks, insurance companies, brokerage firms and asset management companies across as many as five regional markets, including the United States, Asia, Europe, Latin America and Eastern Europe. The fund may be ideal for investors seeking some international exposure but not willing to take the risks associated with investing exclusively outside the United States.¹

This report covers the six-month period from December 1, 1999 through May 31, 2000. It begins with an interview with the fund's portfolio manager, Marc Halperin, Vice President of Federated Global Investment Management Corp. Following his discussion, which covers the fund's objective and strategy and market conditions, are two additional items of shareholder interest. First is a complete listing of the fund's investments, and second is the publication of the fund's financial statements.

Federated Global Financial Services Fund offers investors a unique, timely opportunity to invest in a sector that is evolving and poised to experience rapid growth. The management team focuses on fundamental, bottom-up research and prefers companies with strong business franchises, sound asset quality, and reputable management.

1 Foreign investing involves special risks including currency risk, increased volatility of foreign securities, and differences in auditing and other financial standards. In addition, funds whose investments are concentrated in a specific industry may be subject to a higher degree of market risk than funds whose investments are diversified.

Individual share class total return performance for the six-month reporting period, including realized gains, is as follows:²

	Total Return	Capital Gains	Net Asset Value Change
Class A Shares	(2.37%)	$0.26	$13.21 to $12.64 = (4.31%)
Class B Shares	(2.78%)	$0.26	$13.09 to $12.47 = (4.74%)
Class C Shares	(2.70%)	$0.26	$13.11 to $12.50 = (4.65%)

I recommend adding to your account on a regular basis to take advantage of price fluctuations and to use the dollar-cost averaging method of investing.³ By investing the same amount on a regular basis, you can buy more fund shares when prices are low and fewer when prices are high. Adding to your account is a convenient, painless way to "pay yourself first" and enjoy the benefit of compounding. You may add to your investment account at any time and thus increase the number of shares you own for potential future income.

I would also like to point out that the U.S. market's performance, although very positive, has been surpassed by the market returns in many other nations. In Federated Global Financial Services Fund, you have an opportunity to increase your international exposure and long-term capital appreciation.

Thank you for your investment in Federated Global Financial Services Fund and for the confidence you have placed in our firm.

Sincerely,

Richard B. Fisher

Richard B. Fisher
President
July 15, 2000

3 Systematic investing does not assure a profit or protect against loss in declining markets. Because dollar-cost averaging involves continuous investment, regardless of fluctuating price levels, investors should consider their financial ability to continue purchases during periods of low price levels.

Marc Halperin

Vice President

Federated Global Investment Management Corp.

Investment Review

What is your review of the global financial services stocks during the first half of the fund's fiscal year?

Despite the looming threat of further interest rate hikes by the Federal Reserve Board (the "Fed"), U.S. financial stocks staged a remarkable rally during the first half of the fund's fiscal year. In particular, the asset management companies were strong performers on the back of a continuing consolidation of their sector. Beyond the U.S. market, the financial sector remained weak, as concerns over interest rates and asset quality forced stocks in both Europe and Japan downward.

How did the fund perform for the period compared to its benchmark?

The fund's total returns, based on net asset value, for Class A, B and C Shares were (2.37%), (2.78%) and (2.70%), respectively.¹ The fund's benchmark is the Morgan Stanley Capital International All Country World Finance Index, which produced a total return of (2.35%) for the six-month reporting period.²

1 Performance quoted is based on net asset value, represents past performance, and is no guarantee of future results. Investment return and principal value will fluctuate so an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on offering price (i.e., less any applicable sales charge), for Class A, B and C Shares were (7.75%), (8.02%) and (3.65%), respectively.

2 The MSCI All Country World Finance Index is a medium- to large-cap unmanaged index comprising the banking, financial services, insurance and real estate industries diversified across 46 countries and more than 400 companies. All values are expressed in U.S. dollars. Investments cannot be made in an index.

What were the fund's top five holdings in the United States and top five holdings outside the United States as of May 31, 2000?

Our top five U.S. holdings were as follows:

Name	Country	Percentage of Net Assets
Countrywide Credit Industries, Inc.	U.S.	3.3%
Mellon Financial Corp.	U.S.	3.1%
Fannie Mae	U.S.	2.9%
Washington Mutual, Inc.	U.S.	2.7%
Wells Fargo Co.	U.S.	2.4%
TOTAL		14.4%

Our top five holdings outside the United States were as follows:

Name	Country	Percentage of Net Assets
Sun Life Financial Services of Canada	CA	2.6%
Standard Chartered PLC	UK	1.8%
HSBC Holdings	UK	1.4%
News Corp. Ltd., ADR	AU	1.4%
Sun Hung Kai Properties	HK	1.3%
TOTAL		8.5%

What were the fund's regional breakdowns and country allocations as of May 31, 2000?

Region		Percentage of Net Assets
United States and Canada		70.86%
Asia Pacific		12.59%
Europe		11.61%
Australia		1.71%

Country	Percentage of Net Assets
United States	67.97%	Developed
Hong Kong	8.06%	Developed
United Kingdom	4.97%	Developed
France	3.16%	Developed
Singapore	3.08%	Developed
Canada	2.89%	Developed
Australia	1.71%	Developed
Germany	0.82%	Developed
Italy	0.80%	Developed
Indonesia	0.57%	Emerging
Thailand	0.45%	Emerging
Spain	0.44%	Developed
Japan	0.43%	Developed
Austria	0.42%	Developed
Switzerland	0.35%	Developed
Brazil	0.34%	Developed
Netherlands	0.19%	Developed
Ireland	0.12%	Developed

What are some recent additions to the fund's portfolio?

Mellon Financial (3.1% of portfolio): Regional bank and major asset management company with approximately $500 billion under management.

Countrywide Credit Industries (3.3% of portfolio): Largest independent mortgage banking company in the U.S. servicing approximately $275 billion in mortgages.

Fannie Mae (2.9% of portfolio): Buys and sells mortgages while issuing and selling guaranteed mortgaged-back securities to facilitate housing ownership.

Sun Hung Kai Properties (1.3% of portfolio): Hong Kong's largest property company with a land bark of approximately 35 million square feet of developable space.

HSBC Holdings (1.4% of portfolio): Asia's largest banking institution with major presence in the United States, United Kingdom, Latin America and now Europe with the acquisition in the second quarter of CCF, France's third largest bank.

As we reach the mid-point of 2000, what is your outlook for global financial services stocks and the current strategy for the fund?

We remain optimistic about global financial services. The effect of six rate hikes by the Fed is already beginning to effect the U.S. economy with a marked slowdown in consumer spending and new home sales. Any stabilization of interest rates would only be good for the financial sector. We continue, therefore, to overweight the United States and Hong Kong given the high rate-sensitive component of these markets.

Portfolio of Investments

MAY 31, 2000 (UNAUDITED)

Shares

Value in
U.S. Dollars

COMMON STOCKS--89.8%

Banking--20.0%

18,721

Amsouth Bancorporation

338,148

12,625

Banco Santander Central Hispano, SA

123,792

2,490

Bank Austria AG

118,243

5,685

Bank of Ireland

33,150

3,710

Banque Nationale de Paris

334,875

9,044

Barclays PLC

235,417

7,650

Comerica, Inc.

387,281

1,120

Credit Commerical De France

158,930

5,940

Cullen Frost Bankers, Inc.

157,410

15,500

DBS Group Holdings Ltd.

154,700

83,000

DBS Land Ltd.

94,811

57,600

Dah Sing Financial Group

209,932

1,700

Eaton Vance Corp.

73,950

8,350

Federal Home Loan Mortgage Corp.

371,575

1,500

First Tennessee National Corp.

30,750

19,000

Guoco Group

37,794

35,606

HSBC Holdings PLC

392,969

22,920

Mellon Financial Corp.

883,852

46,000

Overseas Union Bank Ltd.

157,902

40,270

Standard Chartered PLC

518,995

14,900

Wells Fargo Co.

674,225

89,000

Wing Hang Bank Ltd.

176,464

TOTAL

5,665,165

Banks (Major Regional)--5.8%

7,340

Bank One Corp.

242,679

8,216

Fleet Boston Financial Corp.

310,668

12,300

KeyCorp

258,300

12,100

PNC Bank Corp.

609,538

7,540

Summit Bancorp

216,304

TOTAL

1,637,489

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Banks (Money Center)--2.0%

5,310

BankAmerica Corp.

295,037

2,675

Chase Manhattan Corp.

199,789

2,000

First Union Corp.

70,375

TOTAL

565,201

Banks (Regional)--4.4%

6,250

Compass Bancshares, Inc.

126,562

9,875

First Virginia Bank, Inc.

391,914

13,500

Hibernia Corp., Class A

173,813

20,510

SouthTrust Corp.

555,052

TOTAL

1,247,341

Beverages & Tobacco--0.2%

35,000

PT Hanjaya Mandala Sampoerna

44,638

Broadcasting & Publishing--1.6%

20,600

BEC World Public Company Ltd.

126,106

2,000

Nippon Broadcasting System

120,886

30,000

Television Broadcasting

194,424

TOTAL

441,416

Consumer Discretionary--8.6%

29,200

Belo (A.H.) Corp., Series A

469,025

16,400

Centex Corp.

340,300

18,800

D. R. Horton, Inc.

245,575

12,000

Masco Corp.

236,250

6,200

McGraw-Hill Cos., Inc.

318,913

8,550

News Corp. Ltd., ADR

389,559

3,000

Rogers Communications, Inc., Class B

78,410

12,300

Spanish Broadcasting System, Inc.

209,100

7,680

Toll Brothers, Inc.

148,800

TOTAL

2,435,932

Financial--11.4%

15,000

Banca Fideuram Spa

226,987

36,600

Commercial Federal Corp.

583,312

30,000

Countrywide Credit Industries, Inc.

922,500

8,000

Gallagher (Arthur J.) & Co.

309,500

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Financial--continued

14,300

Hutchison Whampoa Ltd.

164,705

11,394

Royal Bank of Scotland PLC, Edinburgh

187,606

49,314

Sun Life Financial Services of Canada

739,710

4,000

Unibanco Uniao de Bancos Brasileiros SA, GDR

96,750

TOTAL

3,231,070

Financial (Diversified)--7.1%

3,600

American Express Co.

193,725

13,740

Fannie Mae

826,118

17,850

Franklin Resources, Inc.

535,500

3,920

Morgan Stanley Dean Witter & Co.

281,995

6,600

Waddell & Reed Financial, Inc., Class A

181,088

TOTAL

2,018,426

Financial Services--6.0%

14,500

Dun & Bradstreet Corp.

445,875

5,150

Kansas City Southern Industries, Inc.

346,338

10,880

Pioneer Group, Inc.

453,560

22,850

Raymond James Financial, Inc.

448,431

TOTAL

1,694,204

Information Technology--0.3%

20,098

Erg Ltd.

95,032

Insurance--4.9%

648

Allianz AG

231,906

1,465

AXA

215,950

1,990

Fortis NV

52,355

11,325

Lincoln National Corp.

438,844

2,980

Marsh & McLennan Cos., Inc.

327,986

100,000

Pacific Century Insurance

32,083

200

Zurich Allied AG

98,341

TOTAL

1,397,465

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Insurance (Multi-Line)--3.5%

2,037

American International Group, Inc.

229,290

7,275

Citigroup, Inc.

452,414

5,250

Hartford Financial Services Group, Inc.

310,406

TOTAL

992,110

Investment Banking/Brokerage--1.7%

12,535

Affiliated Managers Group

419,922

1,753

Bear Stearns Cos., Inc.

69,044

TOTAL

488,966

Leisure & Tourism--0.7%

129,000

Hong Kong Land Holding Ltd.

199,950

Merchandising--0.4%

90,000

PT Ramayana Lestari Sentosa

46,696

157,500

PT Tempo Scan Pacific Tbk

70,304

TOTAL

117,000

Multi-Industry--0.9%

43,000

Swire Pacific Ltd., Class A

247,772

Real Estate--4.9%

26,000

Cheung Kong

237,736

137,000

Hang Lung Development Co.

86,150

59,000

Henderson Land Development Co., Ltd.

230,935

275,370

Sino Land Co.

92,765

60,086

Sun Hung Kai Properties Ltd.

365,501

114,171

Wharf Holdings Ltd.

205,126

281,000

Wing Tai Holdings, Ltd.

183,188

TOTAL

1,401,401

Savings & Loan Companies--2.6%

26,145

Washington Mutual, Inc.

751,669

Telecommunications--2.1%

5,000

British Telecommunication PLC

72,522

66,253

Clipsal Industries Ltd.

80,649

2,700

Telephone and Data System, Inc.

286,200

3,100

Western Wireless Corp., Class A

148,219

TOTAL

587,590

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Utilities--0.7%

680

Suez Lyonnaise des Eaux

114,193

650

Vivendi

69,738

TOTAL

183,931

TOTAL COMMON STOCKS (IDENTIFIED COST $24,408,657)

25,443,768

MUTUAL FUND--6.9%²

1,952,705

Prime Value Obligations Fund, Class IS (at net asset value)

1,952,705

TOTAL INVESTMENTS (IDENTIFIED COST $26,361,362)³

27,396,473

1 Non-income producing security.

2 Pursuant to an Exemptive order, the fund may invest in Prime Value Obligations Fund which is managed by Federated Investment Management Company, an affiliate of the fund's adviser. The adviser has agreed to reimburse certain investment adviser fees as a result of these transactions.

3 The cost of investments for federal tax purposes amounts to $26,361,362. The net unrealized appreciation of investments on a federal tax basis amounts to $1,035,111 comprised of $2,749,524 appreciation and $1,714,413 depreciation at May 31, 2000.

Note: The categories of investments are shown as a percentage of net assets ($28,319,846) at May 31, 2000.

The following acronyms are used throughout this portfolio:

ADR	--American Depositary Receipt
GDR	--Global Depositary Receipt

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

MAY 31, 2000 (UNAUDITED)

Assets:

Total investments in securities, at value (identified and tax cost $26,361,362)

27,396,473

Cash denominated in foreign currency (identified cost $35,496)

35,297

Income receivable

74,504

Receivable for investments sold

632,832

Receivable for shares sold

428,057

TOTAL ASSETS

28,567,163

Liabilities:

Payable for investments purchased

223,804

Payable for shares redeemed

230

Accrued expenses

23,283

TOTAL LIABILITIES

247,317

Net assets for 2,257,392 shares outstanding

28,319,846

Net Assets Consist of:

Paid in capital

26,970,816

Net unrealized appreciation of investments and translation of assets and liabilities in foreign currency

1,034,306

Accumulated net realized gain on investments and foreign currency transactions

263,548

Undistributed net investment income

51,176

TOTAL NET ASSETS

28,319,846

Net Asset Value, Offering Price and Redemption Proceeds Per Share

Class A Shares:

Net Asset Value Per Share ($12,083,677 ÷ 956,023 shares outstanding)

$12.64

Offering Price Per Share (100/94.50 of $12.64)¹

$13.38

Redemption Proceeds Per Share

$12.64

Class B Shares:

Net Asset Value Per Share ($14,319,129 ÷ 1,147,987 shares outstanding)

$12.47

Offering Price Per Share

$12.47

Redemption Proceeds Per Share (94.50/100 of $12.47)¹

$11.78

Class C Shares:

Net Asset Value Per Share ($1,917,040 ÷ 153,382 shares outstanding)

$12.50

Offering Price Per Share

$12.50

Redemption Proceeds Per Share (99.00/100 of $12.50)¹

$12.38

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)

Investment Income:

Dividends (net of foreign taxes withheld of $11,277)

227,505

Interest

62,432

TOTAL INCOME

289,937

Expenses:

Investment adviser fee

108,018

Administrative personnel and services fee

92,501

Custodian fees

14,817

Transfer and dividend disbursing agent fees and expenses

42,232

Directors'/Trustees' fees

162

Auditing fees

7,316

Legal fees

3,273

Portfolio accounting fees

39,877

Distribution services fee --Class B Shares

43,440

Distribution services fee --Class C Shares

5,114

Shareholder services fee --Class A Shares

10,820

Shareholder services fee --Class B Shares

14,480

Shareholder services fee --Class C Shares

1,705

Share registration costs

19,488

Printing and postage

13,503

Insurance premiums

383

Taxes

848

Miscellaneous

2,137

TOTAL EXPENSES

420,114

Waiver and Reimbursement:

Waiver of investment adviser fee

(108,023

)

Reimbursement of other operating expenses

(90,504

)

TOTAL WAIVER AND REIMBURSEMENT

(198,527

)

Net expenses

221,587

Net investment income

68,350

Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:

Net realized gain on investments and foreign currency transactions (net of foreign taxes withheld of $350)

274,879

Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency

(607,091

)

Net realized and unrealized loss on investments and foreign currency

(332,212

)

Change in net assets resulting from operations

(263,862

)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Six
Months
Ended
(unaudited)
May 31,
2000

Year Ended
November 30,
1999

Increase (Decrease) in Net Assets

Operations:

Net investment income

68,350

38,335

Net realized gain on investments and foreign currency transactions ($274,879 and $338,266, respectively, as computed for federal tax purposes)

274,879

282,608

Net change in unrealized appreciation/depreciation of investments and translation of assets and liabilities in foreign currency

(607,091

)

654,937

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS

(263,862

)

975,880

Distributions to Shareholders:

Distributions from net realized gains on investments and foreign currency transactions

Class A Shares

(131,447

)

(26,326

)

Class B Shares

(197,705

)

(17,518

)

Class C Shares

(20,230

)

(2,376

)

CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS

(349,382

)

(46,220

)

Share Transactions:

Proceeds from sale of shares

18,200,023

15,301,925

Net asset value of shares issued to shareholders in payment of distributions declared

319,639

23,764

Cost of shares redeemed

(6,487,313

)

(5,702,680

)

CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS

12,032,349

9,623,009

Change in net assets

11,419,105

10,552,669

Net Assets:

Beginning of period

16,900,741

6,348,072

End of period (including undistributed net investment income of $51,176 and $0, respectively)

28,319,846

16,900,741

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended
November 30,

Period Ended
November 30,

2000

1999

1998

Net Asset Value, Beginning of Period

$13.21

$11.99

$10.00

Income From Investment Operations:

Net investment income

0.04

0.09

0.01

Net realized and unrealized gain (loss) on investments and foreign currency

(0.35

)

1.21

1.98

TOTAL FROM INVESTMENT OPERATIONS

(0.31

)

1.30

1.99

Less Distributions:

Distributions from net realized gain on investments and foreign currency transactions

(0.26

)

(0.08

)

Net Asset Value, End of Period

$12.64

$13.21

$11.99

Total Return³

(2.37

10.87

19.90

Ratios to Average Net Assets:

Expenses

1.60

%⁴

1.60

%⁴

Net investment income

1.11

%⁴

0.79

0.85

%⁴

Expense waiver/reimbursement⁵

1.84

%⁴

3.37

11.49

%⁴

Supplemental Data:

Net assets, end of period (000 omitted)

$12,084

$6,333

$4,094

Portfolio turnover

1 Reflects operations for the period from September 30, 1998 (date of initial public investment) to November 30, 1998.

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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended
November 30,

Period Ended
November 30,

2000

1999

1998

Net Asset Value, Beginning of Period

$13.09

$11.98

$10.00

Income From Investment Operations:

Net investment income

0.03

0.01

0.00

^{2, 3}

Net realized and unrealized gain (loss) on investments and foreign currency

(0.39

)

1.18

1.98

TOTAL FROM INVESTMENT OPERATIONS

(0.36

)

1.19

1.98

Less Distributions:

Distributions from net realized gain on investments and foreign currency transactions

(0.26

)

(0.08

)

Net Asset Value, End of Period

$12.47

$13.09

$11.98

Total Return⁴

(2.78

9.96

19.80

Ratios to Average Net Assets:

Expenses

2.35

%⁵

2.35

%⁵

Net investment income

0.31

%⁵

0.04

0.10

%⁵

Expense waiver/reimbursement⁶

1.84

%⁵

3.37

11.49

%⁵

Supplemental Data:

Net assets, end of period (000 omitted)

$14,319

$9,563

$1,911

Portfolio turnover

1 Reflects operations for the period from September 30, 1998 (date of initial public investment) to November 30, 1998.

2 Per share information is based on average 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended
November 30,

Period Ended
November 30,

2000

1999

1998

Net Asset Value, Beginning of Period

$13.11

$11.98

$10.00

Income From Investment Operations:

Net investment income

0.04

0.01

0.00

^{2, 3}

Net realized and unrealized gain (loss) on investments and foreign currency

(0.39

)

1.20

1.98

TOTAL FROM INVESTMENT OPERATIONS

(0.35

)

1.21

1.98

Less Distributions:

Distributions from net realized gain on investments and foreign currency transactions

(0.26

)

(0.08

)

Net Asset Value, End of Period

$12.50

$13.11

$11.98

Total Return⁴

(2.70

10.13

19.80

Ratios to Average Net Assets:

Expenses

2.35

%⁵

2.35

%⁵

Net investment income

0.36

%⁵

0.04

0.10

%⁵

Expense waiver/reimbursement⁶

1.84

%⁵

3.37

11.49

%⁵

Supplemental Data:

Net assets, end of period (000 omitted)

$1,917

$1,005

$343

Portfolio turnover

1 Reflects operations for the period from September 30, 1998 (date of initial public investment) to November 30, 1998.

2 Per share information is based on average 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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

MAY 31, 2000 (UNAUDITED)

ORGANIZATION

Federated World Investment Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act") as an open-end, management investment company. The Corporation consists of nine portfolios. The financial statements included herein are only those of Federated Global Financial Services Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held.

The Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares. The investment objective of the Fund is to provide long-term growth of capital.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuations

Listed equity securities are valued at the last sale price reported on a national securities exchange. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. With respect to valuation of foreign securities, trading in foreign cities may be completed at times which vary from the closing of the New York Stock Exchange. Therefore, foreign securities are valued at the latest closing price on the exchange on which they are traded prior to the closing of the New York Stock Exchange. Foreign securities quoted in foreign currencies are translated into U.S. dollars at the foreign exchange rate in effect at noon, eastern time, on the day the value of the foreign security is determined. Investments in other open-end regulated investment companies are valued at net asset value.

Investment Income, Expenses and Distributions

Federal Taxes

Withholding taxes on foreign interest and dividends have been provided for in accordance with the applicable country's tax rules and rates.

When-Issued and Delayed Delivery Transactions

Foreign Exchange Contracts

Foreign Currency Translation

The accounting records of the Fund are maintained in U.S. dollars. All assets and liabilities denominated in foreign currencies ("FC") are translated into U.S. dollars based on the rate of exchange of such currencies against U.S. dollars on the date of valuation. Purchases and sales of securities, income and expenses are translated at the rate of exchange quoted on the respective date that such transactions are recorded. Differences between income and expense amounts recorded and collected or paid are adjusted when reported by the custodian bank. The Fund does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments.

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at this period end, resulting from changes in the exchange rate.

Use of Estimates

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2000, par value shares ($0.001 per share) authorized were as follows:

Class Name		Number of Par Value Capital Stock Authorized
Class A Shares		100,000,000
Class B Shares		100,000,000
Class C Shares		100,000,000
TOTAL		300,000,000

Transactions in capital stock were as follows:

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class A Shares:

Shares

Amount

Shares

Amount

Shares sold

726,685

9,104,027

455,958

5,757,599

Shares issued to shareholders in payment of distributions declared

9,818

125,564

505

6,189

Shares redeemed

(259,866

)

(3,288,673

)

(318,686

)

(3,915,384

)

NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS

476,637

5,940,918

137,777

1,848,404

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class B Shares:

Shares

Amount

Shares

Amount

Shares sold

531,159

6,559,152

704,800

8,841,323

Shares issued to shareholders in payment of distributions declared

13,849

175,211

1,303

15,948

Shares redeemed

(127,634

)

(1,569,332

)

(134,984

)

(1,687,785

)

NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS

417,374

5,165,031

571,119

7,169,486

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class C Shares:

Shares

Amount

Shares

Amount

Shares sold

205,775

2,536,844

55,959

703,003

Shares issued to shareholders in payment of distributions declared

1,486

18,864

162

1,627

Shares redeemed

(130,488

)

(1,629,308

)

(8,162

)

(99,511

)

NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS

76,773

926,400

47,959

605,119

NET CHANGE RESULTING FROM SHARE TRANSACTIONS

970,784

12,032,349

756,855

9,623,009

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Global Investment Management Corp., the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 1.00% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee and/or reimburse certain operating expenses of the Fund. The Adviser can modify or terminate this voluntary waiver and/or reimbursement at any time at its sole discretion.

Administrative Fee

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Class A, Class B and Class C Shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC.

Share Class Name		Percentage of Average Daily Net Assets of Class
Class A Shares		0.25%
Class B Shares		0.75%
Class C Shares		0.75%

Class A Shares did not incur a distribution services fee for the six months ended May 31, 2000, and has no present intention of paying or accruing the distribution services fee.

Shareholder Services Fee

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the six months ended May 31, 2000, were as follows:

Purchases	$	15,630,628

Sales	$	5,507,968

CONCENTRATION OF CREDIT RISK

LINE OF CREDIT AGREEMENT

Directors

JOHN F. DONAHUE

THOMAS G. BIGLEY

JOHN T. CONROY, JR.

NICHOLAS P. CONSTANTAKIS

JOHN F. CUNNINGHAM

J. CHRISTOPHER DONAHUE

LAWRENCE D. ELLIS, M.D.

PETER E. MADDEN

CHARLES F. MANSFIELD, JR.

JOHN E. MURRAY, JR., J.D., S.J.D.

MARJORIE P. SMUTS

JOHN S. WALSH

Officers

JOHN F. DONAHUE

Chairman

RICHARD B. FISHER

President

HENRY A. FRANTZEN

Chief Investment Officer

J. CHRISTOPHER DONAHUE

Executive Vice President

EDWARD C. GONZALES

Executive Vice President

JOHN W. MCGONIGLE

Executive Vice President and Secretary

RICHARD J. THOMAS

Treasurer

G. ANDREW BONNEWELL

Assistant Secretary

Federated
World-Class Investment Manager

SEMI-ANNUAL REPORT

AS OF MAY 31, 2000

Federated Global Financial Services Fund

Established 1998

2ND SEMI-ANNUAL REPORT

Federated
Federated Global Financial Services Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated Securities Corp., Distributor

Cusip 31428U847
Cusip 31428U839
Cusip 31428U821

G02455-04 (7/00)

Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.

Federated Investors
World-Class Investment Manager

Richard B. Fisher

President

Federated International Growth Fund

President's Message

Dear Shareholder:

Federated International Growth Fund was created in 1997, and I am pleased to present its third Semi-Annual Report. This is a "fund of funds" approach, whereby shareholders own an interest in four funds, i.e., Federated Asia Pacific Growth Fund, Federated Emerging Markets Fund, Federated European Growth Fund, and Federated International Small Company Fund. This fund is broadly diversified by company, by country, by continent, and by market (both developed and emerging), and by market capitalization.¹ Over 500 companies in 60 countries-- truly a world-class portfolio. As of May 31, 2000, the fund's net assets totaled $72.8 million.

This report covers the six-month reporting period from December 1, 1999 through May 31, 2000. It begins with an interview with the fund's portfolio manager, Stephen Auth, Senior Vice President of Federated Global Investment Management Corp. Following his discussion, which presents his outlook on international economic and market conditions along with the fund's strategy, you will find two additional items of shareholder interest. First is a complete listing of the fund's investments, and second is the publication of the fund's financial statements.

As a long-term investor, you know that short-term volatility, like we have experienced this year, is to be expected. However, the fund's management team feels that once investors begin to focus on the more favorable fundamental conditions in the international arena, international equities will provide investors with the opportunity for high returns.

1 International investing involves special risks including currency risk, increased volatility of foreign securities, and differences in auditing and other financial standards.

Individual share class total return performance for the six-month reporting period, including income distributions, is as follows:²

	Total Return	Income	Net Asset Value Change
Class A Shares	0.49%	$0.56	$12.35 to $11.91 = (3.56%)
Class B Shares	0.06%	$0.49	$12.24 to $11.81 = (3.51%)
Class C Shares	(0.01)%	$0.51	$12.28 to $11.83 = (3.66%)

I recommend adding to your account on a regular basis to take advantage of price fluctuations and to use the dollar-cost averaging method of investing.³ By investing the same amount on a regular basis, you buy more fund shares when prices are low and fewer when prices are high. Adding to your account like this is a convenient, painless way to "pay yourself first" and enjoy the benefit of compounding.

In the past six months, almost every international market has been effected by the six rate increases imposed by the Federal Reserve Board ("the Fed"), though international markets do not normally correlate with domestic markets. The effects of the Fed's six rate increases to fend off fears of U.S. inflation and slow U.S. economic growth effects markets worldwide. We believe the international markets will assert themselves as their respective economies mimic the United States' growth, and in many markets, international equity prices become more attractive than U.S. stock valuations.

Thank you for your investment in Federated's "fund of funds" and for the confidence you have placed in our firm.

Sincerely,

Richard B. Fisher

Richard B. Fisher
President
July 15, 2000

2 Performance quoted is based on net asset value, represents past performance, and is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period based on offering price for Class A, B and C Shares were (5.05%), (5.25%), and (0.98%), respectively.

Stephen F. Auth

Senior Vice President

Federated Global Investment Management Corp.

Investment Review

What is your analysis of the international marketplace over the first half of the fund's fiscal year?

The first half of the fund's fiscal year was very much a tale of two markets. During the first three months, the fund experienced strong gains as the international markets continued their rally from 1999. Our biggest gains during this period occurred in stocks within the technology, media, and telecommunications sectors that also dominated the performance charts last year. During the following three months, a sharp correction in the U.S. markets, particularly in the NASDAQ, spilled over into the international markets; many stocks and indexes closed the six-month reporting period lower in the end.

The primary issue driving the global equity market correction was growing concerns that the Federal Reserve Board ("the Fed") would keep raising interest rates until the U.S. economy slowed. This created concerns about both high market valuations and potentially softening corporate earnings growth. In periods of high market volatility like this, the international markets will often follow the U.S. market's lead, even when fundamentals abroad are quite different. This reporting period was no exception. However, once the volatility in the domestic market begins to abate, we think investors will again focus on the more favorable fundamental conditions in the international arena, and international equities' performance should improve.

How did Federated International Growth Fund perform during the six-month reporting period compared to the overall international equity market?

Federated International Growth Fund produced a six-month total return of 0.49% for Class A Shares based on net asset value. The total returns for Class B Shares and Class C Shares based on net asset value were 0.06% and (0.01%), respectively.¹ These returns were more than the (7.67%) return of the Morgan Stanley Capital International Europe, Australia, and Far East Index (EAFE) for the same period.² The fund's returns also outpaced the (8.63%) average return of the 562 international equity funds tracked by Lipper Analytical Services, Inc.³

What funds in Federated International Growth Fund's portfolio made the greatest impact on the fund's performance during the reporting period?

The strongest contributor to the fund's performance over the period was the Federated European Growth Fund. This fund has been one of our largest holdings with roughly one-third of our assets allocated to it. The weakest performer over the period was Federated Asia Pacific Growth Fund. The Pacific Rim markets were down in sympathy with the U.S. markets, partly because they are less liquid and probably overreacted. Fortunately, Federated Asia Pacific Growth Fund was our smallest holding during the period, although we recently increased our exposure here from 11% to 15%. The other two portfolios, Federated International Small Company Fund and Federated Emerging Markets Fund, were roughly flat over the period.

How were the fund's assets diversified among the four different Federated-managed funds at the end of the reporting period?

As of May 31, 2000, the assets were allocated as follows:

Name		Percentage of Net Assets
Federated International Small Company Fund		32.4%
Federated European Growth Fund		32.1%
Federated Emerging Markets Fund		16.6%
Federated Asia Pacific Growth Fund		10.8%

1 Performance quoted is based on net asset value, represents past performance, and is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period based on offering price for Class A, B and C Shares was (5.05%), (5.25%), and (0.98%), respectively.

2 The MSCI Europe, Australia, and Far East Index is a market capitalization-weighted foreign securities index widely used to measure the performance of European, Australian, New Zealand, and Far Eastern stock markets. The index covers approximately 1,020 companies drawn from 18 countries in the above regions. The index values its securities daily in both U.S. dollars and local currency and calculates total returns monthly. This index is unmanaged and investments cannot be made in an index.

What were the fund's top holdings as of May 31, 2000?

The top two holdings by individual fund were as follows:

Fund	Name of Holding	Country	Percentage of Net Assets
Federated Asia Pacific Growth Fund	NEC Corp.	Japan	2.1%
	Kyocera Corp.	Japan	1.7
Federated Emerging Markets Fund	Samsung Electronics Co.	South Korea	3.9
	Telefonos de Mexico, Class L, ADR	Mexico	3.2
Federated European Growth Fund	Telefonica SA	Spain	3.0
	Vodafone AirTouch PLC	United Kingdom	3.8
Federated Int'l Small Company Fund	Vestas Wind Systems AS	Denmark	39.3
	Matalan	United Kingdom	22.7

As we pass the mid-point of 2000, what is your outlook for international equities? And how have you structured the fund's allocations?

We expect the domestic stock market to remain relatively volatile for the next few months, as investors continue to try to ascertain whether the Fed has reached the end of its rate tightening cycle, and if so, what the impact will be on corporate earnings growth. We think the likelihood of a U.S. "soft landing" is relatively high, with the result that the U.S. market is likely to remain in a trading range for the time being. This may lead investors to begin focusing again on stock market fundamentals offshore.

We remain very bullish on the European markets. The European economy is continuing to accelerate, and may soon outgrow the U.S. economy, which is being slowed down by the Fed's actions. In addition, corporate restructuring and the shift towards the "new economy" stocks continue apace in Europe, and should help drive double-digit earnings growth this year and next. Finally, the European currency is trading almost 20% below its inaugural level from January 1999 and is showing signs of bottoming. A turnaround here could further boost returns on European stocks for American investors. We expect to increase the fund's exposure to Europe.

We are also optimistic about the Asian markets, which have sold off in sympathy with the United States. In addition, Japan's economy remains in recovery mode, and we think corporate earnings growth there is in the early stages of a longer bull cycle. We have used the weakness in these markets to increase exposure to the Pacific Rim region.

Finally, the outlook for emerging markets is also good, as both economies and earnings are recovering. We have increased our exposure here as well.

We have funded these additions to the portfolio both with incoming cashflows, as well as with excess cash available in Federated International Small Company Fund. This fund remains our second largest fund exposure, although our current exposure is now below our previous peak level. We plan to re-look at increasing our exposure later this year, once market volatility begins to abate.

Portfolio of Investments

MAY 31, 2000 (UNAUDITED)

Shares					Value in U.S Dollars
			MUTUAL FUND SHARES--98.9%
	702,787		Federated Asia Pacific Growth Fund, Class A	$	7,864,189
	974,926		Federated Emerging Markets Fund, Class A		12,079,331
	1,323,960		Federated European Growth Fund, Class A		23,367,900
	755,913		Federated International Small Company Fund, Class A		23,576,918
	5,078,916	¹	Prime Value Obligations Fund, Class IS		5,078,916

			TOTAL INVESTMENTS (IDENTIFIED COST $61,311,244)²	$	71,967,254

1 Pursuant to an exemptive order, the fund may invest in Prime Value Obligations Fund which is managed by Federated Investment Management Company, an affiliate of the fund's adviser. The adviser has agreed to reimburse certain investment adviser fees as a result of these transactions

2 The cost of investments for federal tax purposes amounts to $61,311,244. The net unrealized appreciation of investments on a federal tax basis amounts to $10,656,010 which is comprised of $11,453,169 appreciation and $797,159 depreciation at May 31, 2000.

Note: The categories of investments are shown as a percentage of net assets ($72,800,141) at May 31, 2000.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

MAY 31, 2000 (UNAUDITED)

Assets:
Total investments in securities, at value (identified and tax cost $61,311,244)	$	71,967,254
Income receivable		4,406
Receivable for shares sold		748,223
Deferred organizational costs		19,523
Prepaid expenses		142,400

TOTAL ASSETS		72,881,806

Liabilities:
Accrued expenses		81,665

Net assets for 6,127,435 shares outstanding	$	72,800,141

Net Assets Consist of:
Paid-in capital	$	65,399,400
Net unrealized appreciation of investments		10,656,010
Accumulated net realized loss on investments		(3,386,961	)
Undistributed net investment income		131,692

TOTAL NET ASSETS	$	72,800,141

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net Asset Value Per Share ($50,358,712 ÷ 4,228,200 shares outstanding)		$11.91

Offering Price Per Share (100/94.50 of $11.91)¹		$12.60

Redemption Proceeds Per Share		$11.91

Class B Shares:
Net Asset Value Per Share ($17,080,520 ÷ 1,446,223 shares outstanding)		$11.81

Offering Price Per Share		$11.81

Redemption Proceeds Per Share (94.50/100 of $11.81)¹		$11.16

Class C Shares:
Net Asset Value Per Share ($5,360,909 ÷ 453,012 shares outstanding)		$11.83

Offering Price Per Share		$11.83

Redemption Proceeds Per Share (99.00/100 of $11.83)¹		$11.71

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)

Investment Income:
Dividends						$	2,507,131
Interest							190,815

TOTAL INCOME							2,697,946

Expenses:
Administrative personnel and services fee			$	92,501
Custodian fees				3,030
Transfer and dividend disbursing agent fees and expenses				60,321
Directors'/Trustees' fees				571
Auditing fees				6,568
Legal fees				4,149
Portfolio accounting fees				40,956
Distribution services fee--Class B Shares				63,084
Distribution services fee--Class C Shares				15,267
Shareholder services fee--Class A Shares				62,065
Shareholder services fee--Class B Shares				21,028
Shareholder services fee--Class C Shares				5,089
Share registration costs				18,779
Printing and postage				24,775
Insurance premiums				587
Taxes				2,396
Miscellaneous				8,804

TOTAL EXPENSES				429,970

Waivers and Reimbursements:
Waiver of shareholder services fee--Class A Shares	(62,065	)
Waiver of shareholder services fee--Class B Shares	(21,028	)
Waiver of shareholder services fee--Class C Shares	(5,089	)
Reimbursement of other operating expenses	(236,981	)

TOTAL WAIVERS AND REIMBURSEMENTS				(325,163	)

Net expenses							104,807

Net investment income						$	2,593,139

Realized and Unrealized Gain (Loss) on Investments:
Net realized gain on investments							1,180,999
Net change in unrealized appreciation of investments							(5,389,505	)

Net realized and unrealized loss on investments							(4,208,506	)

Change in net assets resulting from operations						$	(1,615,367	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	2,593,139		$	151,593
Net realized gain on investments ($1,180,999 and $274,266, respectively, as computed for federal tax purposes)		1,180,999			314,023
Net change in unrealized appreciation of investments		(5,389,505	)		14,901,475

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(1,615,367	)		15,367,091

Distributions to Shareholders:
Distributions from net investment income
Class A Shares		(1,841,394	)		(145,393	)
Class B Shares		(520,002	)		(2,171	)
Class C Shares		(103,847	)		(233	)

CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(2,465,243	)		(147,797	)

Share Transactions:
Proceeds from sale of shares		56,158,641			32,174,691
Net asset value of shares issued to shareholders in payment of distributions declared		1,633,208			92,098
Cost of shares redeemed		(34,897,296	)		(22,306,048	)

CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		22,894,553			9,960,741

Change in net assets		18,813,943			25,180,035

Net Assets:
Beginning of period		53,986,198			28,806,163

End of period (including undistributed net investment income of $131,692 and $3,796, respectively)	$	72,800,141		$	53,986,198

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,		Year Ended November 30,				Period Ended November 30,
	2000		1999		1998		1997	¹
Net Asset Value, Beginning of Period	$12.35		$ 8.38		$ 8.73		$10.00
Income From Investment Operations:
Net investment income (net operating loss)	0.58		0.07		0.04	²	(0.01	)
Net realized and unrealized gain (loss) on investments	(0.46	)	3.96		(0.33	)	(1.26	)

TOTAL FROM INVESTMENT OPERATIONS	0.12		4.03		(0.29	)	(1.27	)

Less Distributions:
Distributions from net investment income	(0.56	)	(0.06	)	(0.06	)	--

Net Asset Value, End of Period	$11.91		$12.35		$ 8.38		$ 8.73

Total Return³	0.49	%	48.44	%	(3.37	%)	(12.70	%)


Ratios to Average Net Assets:
Expenses	0.08	%⁴	0.07	%	0.08	%	0.07	%⁴

Net investment income (net operating loss)	7.81	%⁴	0.65	%	0.51	%	(0.01	%)⁴

Expense waiver/reimbursement⁵	0.92	%⁴	1.49	%	1.92	%	4.32	%⁴

Supplemental Data:

Net assets, end of period (000 omitted)	$50,359		$39,386		$19,440		$10,562

Portfolio turnover	1	%	12	%	31	%	3	%

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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,		Year Ended November 30,				Period Ended November 30,
	2000		1999		1998		1997	¹
Net Asset Value, Beginning of Period	$12.24		$ 8.31		$ 8.71		$10.00
Income From Investment Operations:
Net investment income (net operating loss)	0.51		(0.00	)²	(0.02	)³	(0.01	)
Net realized and unrealized gain (loss) on investments	(0.45	)	3.93		(0.34	)	(1.28	)

TOTAL FROM INVESTMENT OPERATIONS	0.06		3.93		(0.36	)	(1.29	)

Less Distributions:
Distributions from net investment income	(0.49	)	(0.00	)²	(0.04	)	--

Net Asset Value, End of Period	$11.81		$12.24		$ 8.31		$ 8.71

Total Return⁴	0.06	%	47.33	%	(4.14	%)	(12.90	%)


Ratios to Average Net Assets:

Expenses	0.83	%⁵	0.82	%	0.83	%	0.82	%⁵

Net investment income (net operating loss)	6.52	%⁵	(0.10	%)	(0.24	%)	(0.77	%)⁵

Expense waiver/reimbursement⁶	0.92	%⁵	1.49	%	1.92	%	2.78	%⁵

Supplemental Data:

Net assets, end of period (000 omitted)	$17,081		$12,317		$8,212		$5,036

Portfolio turnover	1	%	12	%	31	%	3	%

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

2 Per share amount does not round to $(0.01).

3 Per share information is based on average shares outstanding.

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

5 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,		Year Ended November 30,				Period Ended November 30,
	2000		1999		1998		1997	¹
Net Asset Value, Beginning of Period	$12.28		$ 8.33		$ 8.72		$10.00
Income From Investment Operations:
Net investment income (net operating loss)	0.52		(0.00	)²	(0.02	)³	(0.01	)
Net realized and unrealized gain (loss) on investments	(0.46	)	3.95		(0.33	)	(1.27	)

TOTAL FROM INVESTMENT OPERATIONS	0.06		3.95		(0.35	)	(1.28	)

Less Distributions:
Distributions from net investment income	(0.51	)	(0.00	)²	(0.04	)	--

Net Asset Value, End of Period	$11.83		$12.28		$ 8.33		$ 8.72

Total Return⁴	(0.01	%)	47.45	%	(3.99	%)	(12.80	%)


Ratios to Average Net Assets:

Expenses	0.83	%⁵	0.82	%	0.83	%	0.82	%⁵

Net investment income (net operating loss)	5.18	%⁵	(0.10	%)	(0.24	%)	(0.77	%)⁵

Expense waiver/reimbursement⁶	0.92	%⁵	1.49	%	1.92	%	2.69	%⁵

Supplemental Data:

Net assets, end of period (000 omitted)	$5,361		$2,284		$1,154		$680

Portfolio turnover	1	%	12	%	31	%	3	%

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

2 Per share amount does not round to $(0.01).

3 Per share information is based on average shares outstanding.

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

5 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

MAY 31, 2000 (UNAUDITED)

ORGANIZATION

Federated World Investment Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Corporation consists of nine portfolios. The financial statements included herein are only those of Federated International Growth Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held.

The Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares. The investment objective of the Fund is to provide long-term growth of capital. The Fund pursues its investment objective by investing in shares of other open-end management investment companies for which affiliates of Federated Investors, Inc. serve as investment adviser, transfer and dividend disbursing agent, portfolio accountant, and principal underwriter (the "Federated Funds," herein referred to as the "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 Markets Fund, Federated European Growth Fund and Federated International Small Company Fund.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

Investments in other open-end regulated investment companies are valued at net asset value. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may by valued at amortized cost, which approximates fair market value.

Investment Income, Expenses and Distributions

Federal Taxes

At November 30, 1999, the Fund, for federal tax purposes, had a capital loss carryforward of $4,101,553, which will reduce the Fund's taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire in 2006.

When-Issued and Delayed Delivery Transactions

Use of Estimates

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2000, par value shares ($0.001 per share) authorized were as follows:

Share Class Name		Number of Par Value Capital Stock Authorized
Class A Shares		100,000,000
Class B Shares		100,000,000
Class C Shares		100,000,000
TOTAL		300,000,000

Transactions in capital stock were as follows:

	Six Months Ended May 31, 2000					Year Ended November 30, 1999
Class A Shares:	Shares			Amount			Shares			Amount
Shares sold	2,920,347		$	39,526,768			2,660,753		$	26,693,042
Shares issued to shareholders in payment of distributions declared	78,860			1,055,154			10,444			89,817
Shares redeemed	(1,960,656	)		(27,270,861	)		(1,800,577	)		(17,702,441	)

NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	1,038,551		$	13,311,061			870,620		$	9,080,418


	Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class B Shares:	Shares			Amount			Shares			Amount
Shares sold	508,578		$	6,985,600			273,359		$	2,722,015
Shares issued to shareholders in payment of distributions declared	37,244			496,087			241			2,065
Shares redeemed	(105,951	)		(1,432,862	)		(255,138	)		(2,367,708	)

NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	439,871		$	6,048,825			18,462		$	356,372


	Six Months Ended May 31, 2000						Year Ended November 30, 1999
Class C Shares:	Shares			Amount			Shares			Amount
Shares sold	722,543		$	9,646,273			257,750		$	2,759,634
Shares issued to shareholders in payment of distributions declared	6,140			81,967			25			216
Shares redeemed	(461,638	)		(6,193,573	)		(210,253	)		(2,235,899	)

NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	267,045		$	3,534,667			47,522		$	523,951

NET CHANGE RESULTING FROM SHARE TRANSACTIONS	1,745,467		$	22,894,553			936,604		$	9,960,741

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Global Investment Management Corp. is the Fund's investment adviser (the "Adviser"). The investment adviser fee is contingent upon the grant of certain exemptive relief from the Securities and Exchange Commission. If the Fund were paying or accruing the investment adviser 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 investments, and not on those assets invested in shares of the underlying funds. 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. The Fund did not pay or accrue the asset allocation fee during the period ended May 31, 2000.

Administrative Fee

Federated Services Company ("FServ"), under the Administrative Services Agreement, provides the Funds with administrative personnel and services. The fee paid to FServ is based on a scale that ranges from 0.15% to 0.075% of the average aggregate daily net assets of all funds advised by subsidiaries of Federated Investors, Inc. subject to a $125,000 minimum per portfolio and $30,000 per each additional class.

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Class A Shares, Class B Shares and Class C Shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC.

Share Class Name		Percentage of Average Daily Net Assets of Class
Class A Shares		0.25%
Class B Shares		0.75%
Class C Shares		0.75%

Class A Shares did not pay or accrue the distribution services fee during the period ended May 31, 2000, and has no present intention of paying or accruing a distribution services fee.

Shareholder Services Fee

Under the terms of a Shareholder Services Agreement with Federated Shareholder Services Company ("FSSC"), the Fund will pay FSSC up to 0.25% of average daily net assets of the Fund for the period. The fee paid to FSSC is used to finance certain services for shareholders and to maintain shareholder accounts. FSSC may voluntarily choose to waive any portion of its fee. FSSC can modify or terminate this voluntary waiver at any time at its sole discretion.

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

Organizational Expenses

Organizational expenses of $42,732 were borne initially by the Adviser. The Fund has reimbursed the Adviser for these expenses. These expenses have been deferred and are being amortized over the five-year period following the Fund's effective date. For the period ended May 31, 2000, the Fund expensed $4,622 of organizational expenses.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the period ended May 31, 2000, were as follows:

Purchases	$	25,297,365

Sales	$	500,000

LINE OF CREDIT AGREEMENT

Directors

JOHN F. DONAHUE

THOMAS G. BIGLEY

JOHN T. CONROY, JR.

NICHOLAS P. CONSTANTAKIS

JOHN F. CUNNINGHAM

J. CHRISTOPHER DONAHUE

LAWRENCE D. ELLIS, M.D.

PETER E. MADDEN

CHARLES F. MANSFIELD, JR.

JOHN E. MURRAY, JR., J.D., S.J.D.

MARJORIE P. SMUTS

JOHN S. WALSH

Officers

JOHN F. DONAHUE

Chairman

RICHARD B. FISHER

President

HENRY J. FRANTZEN

Chief Investment Officer

J. CHRISTOPHER DONAHUE

Executive Vice President

EDWARD C. GONZALES

Executive Vice President

JOHN W. MCGONIGLE

Executive Vice President and Secretary

RICHARD J. THOMAS

Treasurer

G. ANDREW BONNEWELL

Assistant Secretary

Federated
World-Class Investment Manager

SEMI-ANNUAL REPORT

AS OF MAY 31, 2000

Federated International Growth Fund

Established 1997

3RD SEMI-ANNUAL REPORT

Federated
Federated International Growth Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated Securities Corp., Distributor

Cusip 31428U813
Cusip 31428U797
Cusip 31428U789

G02418-01 (7/00)

Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.

Federated Investors
World-Class Investment Manager

Richard B. Fisher

President

Federated International High Income Fund

President's Message

Dear Fellow Shareholder:

Federated International High Income Fund was created in 1996, and I am pleased to present its fourth Semi-Annual Report. The fund provides shareholders significant monthly income from a select portfolio of carefully researched international bonds issued by companies and governments outside the United States--primarily in the emerging markets.¹ As of May 31, 2000, the fund's $86.3 million in assets were invested in 34 government bonds and 26 international corporate issues across 27 countries.

This report covers the six-month period from December 1, 1999 through May 31, 2000. It begins with an interview with Robert Kowit, Vice President, who co-manages the fund with Micheal Casey, Vice President, both of Federated Global Investment Management Corp. Following their discussion covering international economic and market conditions along with the fund's strategy are two additional items of shareholder interest. First is a complete listing of the fund's international bond investments, and second is the publication of the fund's financial statements.

While it has been a difficult period for bond investors--in the United States and abroad--Federated International High Income Fund gives you the opportunity to increase your international exposure with a diversified portfolio of fixed income securities. The bonds in the fund have not only been generous income-paying issues, but also offer the potential for long-term capital appreciation. In recent months, interest rates in many countries rose, and all bond prices declined. However, the main engine driving U.S. rates up may have come to its last stop, and with a resulting slower U.S. economy, demand for money by businesses and demand for funds by the U.S. government should decrease. We believe rates will fall globally, and yes, bond prices will rise. We are optimistic about the potential for appreciation in the fund's holdings.

Individual share class total return performance for the six-month reporting period, including income distributions, follows.²

	Total Return	Income	Net Asset Value Change
Class A Shares	(0.26%)	$0.39	$7.71 to $7.31 = (5.19%)
Class B Shares	(0.64%)	$0.36	$7.71 to $7.31 = (5.19%)
Class C Shares	(0.65%)	$0.36	$7.71 to $7.31 = (5.19%)

If you are not already doing so, I invite you to join the many shareholders who reinvest their monthly dividends and/or add to their accounts to compound their shares in order to own more shares for future income. Adding to your account on a regular basis allows you to take advantage of price fluctuations and to employ the dollar-cost averaging method of investing.³ By investing the same amount regularly, you buy more fund shares when prices are low and fewer when prices are high.

Thank you for your investment in Federated International High Income Fund and for the continued confidence you have shown by investing a portion of your wealth in the fund.

Sincerely,

Richard B. Fisher

Richard B. Fisher
President
July 15, 2000

2 Performance quoted is based on net asset value, represents past performance, and is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on offering price (i.e., less any applicable sales charge), for Class A, B and C Shares were (4.71%), (5.86%) and (1.59%), respectively.

Micheal W. Casey

Vice President

Federated Global Investment Management Corp.

Robert M. Kowit

Vice President

Federated Global Investment Management Corp.

Investment Review

The fund invests in three relatively uncorrelated sectors of the international fixed income markets--emerging markets, European high yield, and non-dollar developed markets. How did these markets perform?

Developed market debt suffered from the strength of the U.S. dollar and returned a negative 4.49%, as defined by the J.P. Morgan Non-Dollar Bond Index through May 31, 2000. The same index, hedged into U.S. dollars, returned a positive 3.50%. Emerging markets, as defined by the J.P. Morgan Emerging Market Bond Index, returned 2.88%. The euro high-yield market does not have a generally accepted index, but the bonds we held had a positive return of 1%-3% for the reporting period.¹

The Federal Reserve Board's actions of increasing interest rates had more impact on developed markets than emerging markets. In the months ahead, we look for lower interest rates globally.

1 The J.P. Morgan Non-Dollar Bond Index is a total return, unmanaged trade-weighted index of over 360 government and high-grade bonds in 12 developed countries. The J.P. Morgan Emerging Market Bond Index is an unmanaged index that tracks the total returns of external currency denominated debt instruments of 14 emerging market countries. Investments cannot be made in an index.

How did Federated International High Income Fund perform over the first half of its fiscal year?

For the six-month period ended May 31, 2000, the fund's returns were: Class A Shares (0.26%); Class B Shares (0.64%); and Class C Shares (0.65%).² These returns were greater than the (4.49%) return of the developed markets, as measured by the J.P. Morgan Non-Dollar Bond Index. The average return of all international high income bond funds tracked by Lipper Analytical Services, Inc. was 7.92%.³

Income is a primary consideration for shareholders. What level of income did the fund provide during the reporting period?

The fund paid a healthy income stream totaling $0.39 per share for Class A Shares, $0.36 per share for Class B Shares and $0.36 per share for Class C Shares. From a yield perspective, the fund's 30-day SEC yield as of May 31, 2000 was 10.72%, based on offering price, and 11.23%, based on net asset value, for Class A Shares, 10.45%, based on net asset value, for Class B Shares and 10.46%, based on net asset value, for Class C Shares.

The fund maintains a general allocation of 20%-30% to developed markets and 70%-80% to emerging markets. What is the fund's current allocation and why?

The fund had an allocation of about 80% emerging markets and 20% developed markets. Economic fundamentals in emerging market countries continue to improve and should outperform most other classes of debt.

What were the fund's top five international government and corporate holdings as of May 31, 2000?

The fund's top five international government holdings were:

Country	Coupon/Maturity	Percentage of Net Assets
Brazil	12.75% due 1/15/2020	6.39%
Brazil	12.25% due 3/6/2030	4.60%
Brazil	14.50% due 10/15/2009	3.58%
Russia	12.75% due 6/24/2028	3.57%
Kazakstan	11.125% due 5/11/2007	3.54%
TOTAL		21.68%

2 Performance quoted is based on net asset value, represents past performance, and is no guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on offering price (i.e., less any applicable sales charge), for Class A, B and C Shares were (4.71%), (5.86%) and (1.59%), respectively.

The fund's top five international corporate holdings were:

Name	Coupon/Maturity	Country	Percentage of Net Assets
Empresa Nacional Electricidad SA	8.50% due 4/1/2009	Chile	2.72%
Vicap SA, Sr. Note	11.375% due 5/15/2007	Mexico	2.70%
Kowloon Canton Railway, Note	8.00% due 3/15/2010	Hong Kong	2.48%
Maxcom Telecomunicacione, Unit, Sr. Note	13.75% due 4/1/2007	Mexico	2.47%
Turkcell Iletisim Hizmet, Series REGS	12.75% due 8/1/2005	Turkey	2.31%
TOTAL			12.68%

Describe some of the fund's recent purchases, and comment on some attractive opportunities you have found in specific countries or markets.

Russia continues to show signs of economic recovery supported in part by higher oil prices during this year. Improved domestic growth figures have translated into a lower budget deficit, and allowed for a significant drop in inflation rates compared to last year.

Increase in exposure to Russia was in the form of long dated dollar-denominated Eurobonds, such as Government of Russia 12.75%, due 6/24/2028.

Kazakhstan continues to benefit from high oil and commodity prices and robust global demand. The country continues to enjoy stable exchange rates and considerable reduction of inflation, reflecting an improved fiscal performance, solid trade surpluses, and sustainable foreign direct investment. The recent discovery of potentially sizable oil reserves in the Caspian Sea could significantly improve the country's credit outlook.

Investment was in the form of the dollar-denominated Eurobond, Government of Kazakhstan 11.125% due 5/11/2007.

The telecommunication sector in Europe has undergone significant changes in the last two years with most of the local markets now open for competition. We believe the sector offers attractive opportunities in selected markets characterized by a small number of competitors and strong demand growth for telecommunication services. During the reporting period the fund participated in a bond offering for Enitel, now the second largest telecom operator in Norway offering voice, data and Internet services primarily to small and medium size enterprises. The company should benefit from early mover advantage and a strong brand name. The bonds are Enitel 12.5% due 4/15/2010.

As we reach the mid-point of 2000, what is your outlook for the emerging and developed bond markets?

Emerging market debt should continue to do well as economic fundamentals improve in most developing countries, and we anticipate the lowering of interest rates globally. The developed markets should benefit from the gradual weakening of the U.S. dollar, as global growth differentials shrink. Both markets are attractive, and together should provide positive returns.

Portfolio of Investments

MAY 31, 2000 (UNAUDITED)

Foreign Currency Par Amount				Value in U.S. Dollars
		CORPORATE BONDS--35.1%
		Broadcast Radio & TV--1.4%
500,000	^{2, 3}	Globo Communicacoes Part Sr. Note, 10.625%, 12/5/2008	$	383,125
1,000,000		Globo Communicacoes Part, Sr. Note, 10.625%, 12/5/2008		825,552

		TOTAL		1,208,677

		Chemicals & Plastics--1.7%
1,500,000		Huntsman ICI Chemicals, Sr. Sub., 10.125%, 7/1/2009		1,467,297

		Conglomerates--0.7%
1,260,000		Brierley Investments Ltd., Bond, 9.00%, 3/15/2002		576,034

		Container & Glass Products--2.7%
2,750,000		Vicap SA, Sr. Note, 11.375%, 5/15/2007		2,330,625

		Electronics--1.3%
150,000		Erg Ltd., 7.50%, 10/1/2005		1,100,602

		Food & Drug Retailers--2.2%
2,000,000	^{2, 3}	Premier Intl Foods PLC, 12.00%, 9/1/2009		1,910,000

		Forest Products--1.5%
1,300,000		Grupo Industrial Durango SA de CV, 12.625%, 8/1/2003		1,278,940

		Government Agency--1.1%
1,000,000		China Development Bank, 8.25%, 5/15/2009		975,340

		Surface Transportation--2.5%
2,200,000		Kowloon-Canton Railway, Note, 8.00%, 3/15/2010		2,144,142

		Technology Services--1.5%
1,500,000	^{2, 3}	Hyundai Semiconductor, Series 144A, 8.625%, 5/15/2007		1,321,545

		Telecommunications & Cellular--15.8%
1,500,000		Alestra SA, 12.625%, 5/15/2009		1,320,000
2,200,000		Clearnet Communications, Inc., Sr. Disc. Note, 8/13/2007		1,013,419
1,000,000		Enitel ASA, 12.50%, 4/15/2010		932,950
1,000,000	^{2, 3}	Jazztel PLC, Sr. Note, 13.25%, 12/15/2009		858,314
500,000	²	Jazztel PLC, Sr. Note, 14.00%, 4/1/2009		443,151
2,500,000	^{2, 3}	Level 3 Communications, Inc., 144A, 10.75%, 3/15/2008		2,110,799
Foreign Currency Par Amount				Value in U.S. Dollars
		CORPORATE BONDS--continued
		Telecommunications & Cellular--continued
2,500,000		Maxcom Telecomunicacione, Unit, Sr. Note, 13.75%, 4/1/2007	$	2,131,250
600,000		Netia Holdings, Series B, 0/11.25%, 11/1/2007		411,000
1,000,000		Nuevo Grupo Iusacell SA de CV, Series REGS, 14.25%, 12/1/2006		995,000
5,250,000		Telkom SA Ltd., 10.00%, 3/31/2008		590,180
2,000,000		Turkcell Iletisim Hizmet, Series REGS, 12.75%, 8/1/2005		1,990,000
1,000,000	^{2, 3}	Viatel, Inc., Sr. Note, Series 144A, 12.75%, 4/15/2008		867,643

		TOTAL		13,663,706

		Utilities--2.7%
2,500,000		Empresa Nacional Electricidad SA, 8.50%, 4/1/2009		2,345,650

		TOTAL CORPORATE BONDS (IDENTIFIED COST $33,512,003)		30,322,558

		SOVEREIGN GOVERNMENTS--61.1%
1,700,000		Argentina, Government of, Discount Bond, 7.875%, 3/31/2023		1,411,000
2,000,000		Argentina, Government of, Global Bond Deb., 9.75%, 9/19/2027		1,511,864
3,012,000		Brazil, Government of, 14.50%, 10/15/2009		3,087,300
4,500,000		Brazil, Government of, Bond, 12.25%, 3/6/2030		3,971,250
6,000,000		Brazil, Government of, Bond, 12.75%, 1/15/2020		5,520,000
2,462,820		Brazil, Government of, C Bond, 8.00%, 4/15/2014		1,723,974
2,000,000	^{2, 3}	Buenos Aires, City of, MTN Sr. Unsub., Series, 11.25%, 4/11/2007		1,700,000
2,800,000		Bulgaria, Government of, 2.75%, 7/28/2012		1,885,019
1,250,000		El Salvador, Government of, Note, 9.50%, 8/15/2006		1,262,500
150,000,000		Hungary, Government of, 13.50%, 1/12/2001		547,582
172,500,000		Hungary, Government of, Bond, 14.00%, 12/12/2002		671,505
100,000,000		Hungary, Government of, Bond, 14.00%, 6/24/2002		384,961
3,000,000	^{2, 3}	Kazakhstan, Government of, Bond, 11.125%, 5/11/2007		3,052,500
1,500,000		Lesotho Water Authority, Bond, 12.50%, 4/15/2002		212,088
2,600,000		Lesotho Water Authority, Foreign Gov't. Guarantee, 13.00%, 9/15/2010		332,433
1,100,000		Mexico, Government of, 10.375%, 2/17/2009		1,112,375
2,400,000		Mexico, Government of, 11.375%, 9/15/2016		2,577,000
1,000,000		Mexico, Government of, Foreign Gov't. Guarantee, 6.9023%, 12/31/2019		977,500
1,500,000		Panama, Government of, Bond, 8.875%, 9/30/2027		1,151,250
1,000,000		Panama, Government of, Deb., 4.25%, 7/17/2014		760,000
2,000,000		Peru, Government of, 3/7/2017		1,112,500
3,500,000		Philippines, Government of, Note, 10.625%, 3/16/2025		2,878,645
5,500,000		Poland, Government of, 10.00%, 6/12/2004		1,060,580
Foreign Currency Par Amount				Value in U.S. Dollars
		SOVEREIGN GOVERNMENTS--continued
3,500,000		Poland, Government of, Bond, 12.00%, 10/12/2003	$	715,927
1,000,000		Poland, Government of, Bond, 12.00%, 6/12/2002		206,826
4,000,000		Poland, Government of, Bond, 12.00%, 6/12/2003		818,203
2,000,000		Russia, Government of, 10.00%, 6/26/2007		1,375,000
4,000,000		Russia, Government of, Unsub., 12.75%, 6/24/2028		3,080,000
3,500,000		South Africa, Government of, 13.50%, 9/15/2015		474,032
2,000,000		South Africa, Government of, Bond, 12.50%, 1/15/2002		287,250
2,700,000		South Africa, Government of, Sr. Unsub., 9.125%, 5/19/2009		2,548,530
1,000,000		Turkey, Government of, Sr. Unsub., 11.875%, 1/15/2030		1,045,000
2,000,000		Turkey, Government of, Sr. Unsub., 12.375%, 6/15/2009		2,078,780
1,523,800		Venezuela, Government of, Deb., 7.00%, 12/18/2007		1,196,182

		TOTAL SOVEREIGN GOVERNMENTS (IDENTIFIED COST $55,011,282)		52,729,556

		MUTUAL FUND--1.8%⁴
1,521,637		Prime Value Obligations Fund, Series IS (at net asset value)		1,521,637

		TOTAL INVESTMENTS (IDENTIFIED COST $90,044,922)⁵	$	84,573,751

1 Non-income producing security.

2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. At May 31, 2000, these securities amounted to $12,647,077 which represents 14.6% of net assets. Included in these amounts, securities which have been deemed liquid amounted to $12,203,926 which represents 14.1% of net assets.

3 Denotes a restricted security that has been deemed liquid by criteria approved by the fund's Board of Directors.

4 Pursuant to an Exemptive order, the fund may invest in Prime Value Obligations Fund which is managed by Federated Investment Management Company, an affiliate of the fund's adviser. The adviser has agreed to reimburse certain investment adviser fees as a result of these transactions.

5 The cost of investments for federal tax purposes amounts to $90,044,922. The net unrealized depreciation of investments on a federal tax basis amounts to $5,471,171 which is comprised of $636,497 appreciation and $6,107,668 depreciation at May 31, 2000.

Note: The categories of investments are shown as a percentage of net assets ($86,331,699) at May 31, 2000.

The following acronym is used throughout this portfolio:

MTN	--Medium Term Note

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

MAY 31, 2000 (UNAUDITED)

Assets:
Total investments in securities, at value (identified and tax cost $90,044,922)			$	84,573,751
Cash				5
Income receivable				2,954,247
Receivable for investments sold				1,819,897
Receivable for shares sold				39,743
Prepaid expenses				121,464
Deferred organizational costs				14,361

TOTAL ASSETS				89,523,468

Liabilities:
Payable for investments purchased	$	2,408,580
Payable for shares redeemed		191,252
Income distribution payable		498,397
Accrued expenses		93,540

TOTAL LIABILITIES				3,191,769

Net assets for 11,813,477 shares outstanding			$	86,331,699

Net Assets Consist of:
Paid in capital			$	112,081,520
Net unrealized depreciation of investments and translation of assets and liabilities in foreign currency				(5,500,890	)
Accumulated net realized loss on investments and foreign currency transactions				(19,343,084	)
Accumulated distributions in excess of net investment income				(905,847	)

TOTAL NET ASSETS			$	86,331,699

Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net asset value per share ($17,996,674 ÷ 2,462,213 shares outstanding)				$7.31

Offering price per share (100/95.50 of $7.31)¹				$7.65

Redemption proceeds per share				$7.31

Class B Shares:
Net asset value per share ($62,552,871 ÷ 8,560,174 shares outstanding)				$7.31

Offering price per share				$7.31

Redemption proceeds per share (94.50/100 of $7.31)¹				$6.91

Class C Shares:
Net asset value per share ($5,782,154 ÷ 791,090 shares outstanding)				$7.31

Offering price per share				$7.31

Redemption proceeds per share (99.00/100 of $7.31)¹				$7.24

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)

Investment Income:
Interest				$	4,995,358

Expenses:
Investment adviser fee	$	393,150
Administrative personnel and services fee		92,501
Custodian fees		31,645
Transfer and dividend disbursing agent fees and expenses		34,083
Directors'/Trustees' fees		953
Auditing fees		8,391
Legal fees		38,268
Portfolio accounting fees		41,528
Distribution services fee--Class B Shares		258,343
Distribution services fee--Class C Shares		23,231
Shareholder services fee--Class A Shares		21,774
Shareholder services fee--Class B Shares		86,114
Shareholder services fee--Class C Shares		7,744
Share registration costs		14,423
Printing and postage		24,886
Insurance premiums		543
Taxes		4,882
Interest -- Line of credit		626
Miscellaneous		8,745

TOTAL EXPENSES		1,091,830

Waiver of investment adviser fee		(346,903	)

Net expenses					744,927

Net investment income					4,250,431

Realized and Unrealized Gain (Loss) on Investments and Foreign Currency:
Net realized loss on investments and foreign currency transactions (net of foreign taxes withheld of $113,334)					(6,928,124	)
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency					2,363,183

Net realized and unrealized gain (loss) on investments and foreign currency					(4,564,941	)

Change in net assets resulting from operations				$	(314,510	)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) May 31, 2000			Year Ended November 30, 1999
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	4,250,431		$	10,927,190
Net realized loss on investments and foreign currency transactions ($(6,928,124) and $(9,858,320), respectively, as computed for federal tax purposes)		(6,928,124	)		(11,742,170	)
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency		2,363,183			7,020,034

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		(314,510	)		6,205,054

Distributions to Shareholders:
Distributions from net investment income
Class A Shares		(883,657	)		(1,625,090	)
Class B Shares		(3,213,384	)		(6,725,976	)
Class C Shares		(289,030	)		(657,826	)
Distributions from paid-in capital:
Class A Shares		--			(131,312	)
Class B Shares		--			(543,479	)
Class C Shares		--			(53,154	)

CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(4,386,071	)		(9,736,837	)

Share Transactions:
Proceeds from sale of shares		18,460,819			45,603,157
Net asset value of shares issued to shareholders in payment of distributions declared		1,346,899			2,735,426
Cost of shares redeemed		(24,694,572	)		(38,504,202	)

CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(4,886,854	)		9,834,381

Change in net assets		(9,587,435	)		6,302,598

Net Assets:
Beginning of period		95,919,134			89,616,536

End of period	$	86,331,699		$	95,919,134

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,		Year Ended November 30,
	2000			1999		1998		1997		1996	¹
Net Asset Value, Beginning of Period	$ 7.71			$ 7.99		$ 9.50		$10.12		$10.00
Income From Investment Operations:
Net investment income	0.38			0.93	²	0.94		1.18		0.17	²
Net realized and unrealized gain (loss) on investments and foreign currency transactions	(0.39	)		(0.37	)	(1.49	)	(0.78	)	0.13

TOTAL FROM INVESTMENT OPERATIONS	(0.01	)		0.56		(0.55	)	0.40		0.30

Less Distributions:
Distributions from net investment income	(0.39	)		(0.78	)	(0.96	)	(1.02	)	(0.17	)
Distributions in excess of net investment income	--			--		--		--		(0.01	)³
Distributions from paid-in capital⁴	--			(0.06	)²	--		--		--
Distributions from net realized gain on investments and foreign currency transactions	--			--		(0.00	)⁵	--		--

TOTAL DISTRIBUTIONS	(0.39	)		(0.84	)	(0.96	)	(1.02	)	(0.18	)

Net Asset Value, End of Period	$ 7.31			$ 7.71		$ 7.99		$ 9.50		$10.12

Total Return⁶	(0.26	%)		7.55	%	(5.95%	)	4.02	%	2.99	%


Ratios to Average Net Assets:

Expenses	1.00	%⁷		0.96	%	0.82	%	0.75	%	0.75	%⁷

Net investment income	9.78	%⁷		12.09	%	11.07	%	10.54	%	9.19	%⁷

Expense waiver/reimbursement⁸	0.75	%⁷		0.79	%	0.99	%	2.03	%	8.46	%⁷

Supplemental Data:

Net assets, end of period (000 omitted)	$17,997			$17,793		$11,052		$9,073		$599

Portfolio turnover	102	%		87	%	128	%	93	%	0	%

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 did not represent a return of capital for federal income tax purposes.

4 Represents a return of capital for federal income tax purposes.

5 Per share amount does not round to $(0.01).

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

7 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,		Year Ended November 30,
	2000			1999		1998		1997		1996	¹
Net Asset Value, Beginning of Period	$ 7.71			$ 7.99		$ 9.50		$10.12		$10.00
Income From Investment Operations:
Net investment income	0.34			0.88	²	0.89		0.96		0.18	²
Net realized and unrealized gain (loss) on investments and foreign currency transactions	(0.38	)		(0.38	)	(1.50	)	(0.63	)	0.11

TOTAL FROM INVESTMENT OPERATIONS	(0.04	)		0.50		(0.61	)	0.33		0.29

Less Distributions:
Distributions from net investment income	(0.36	)		(0.72	)	(0.90	)	(0.95	)	(0.17	)
Distributions from paid-in capital³	--			(0.06	)²	--		--		--
Distributions from net realized gain on investments and foreign currency transactions	--			--		(0.00	)⁴	--		--

TOTAL DISTRIBUTIONS	(0.36	)		(0.78	)	(0.90	)	(0.95	)	(0.17	)

Net Asset Value, End of Period	$ 7.31			$ 7.71		$ 7.99		$ 9.50		$10.12

Total Return⁵	(0.64	%)		6.73	%	(6.67	%)	3.24	%	2.87	%


Ratios to Average Net Assets:

Expenses	1.75	%⁶		1.71	%	1.57	%	1.50	%	1.50	%⁶

Net investment income	9.05	%⁶		11.34	%	10.37	%	9.73	%	8.92	%⁶

Expense waiver/reimbursement⁷	0.75	%⁶		0.79	%	0.99	%	2.03	%	8.46	%⁶

Supplemental Data:

Net assets, end of period (000 omitted)	$62,553			$71,881		$70,458		$49,929		$5,397

Portfolio turnover	102	%		87	%	128	%	93	%	0	%

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 Represents a return of capital for federal income tax purpose.

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.

6 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

	Six Months Ended (unaudited) May 31,		Year Ended November 30,
	2000			1999		1998		1997		1996	¹
Net Asset Value, Beginning of Period	$ 7.71			$ 7.99		$ 9.50		$10.12		$10.00
Income from Investment Operations:
Net investment income	0.35			0.88	²	0.85		0.98		0.17	²
Net realized and unrealized gain (loss) on investments and foreign currency transactions	(0.39	)		(0.38	)	(1.46	)	(0.65	)	0.12

TOTAL FROM INVESTMENT OPERATIONS	(0.04	)		0.50		(0.61	)	0.33		0.29

Less Distributions:
Distributions from net investment income	(0.36	)		(0.72	)	(0.90	)	(0.95	)	(0.17	)
Distributions from paid-in capital³	--			(0.06	)²	--		--		--
Distributions from net realized gain on investments and foreign currency transactions	--			--		(0.00	)⁴	--		--

TOTAL DISTRIBUTIONS	(0.36	)		(0.78	)	(0.90	)	(0.95	)	(0.17	)

Net Asset Value, End of Period	$ 7.31			$ 7.71		$ 7.99		$ 9.50		$10.12

Total Return⁵	(0.65	%)		6.73	%	(6.67	%)	3.24%		2.87	%


Ratios to Average Net Assets:

Expenses	1.75	%⁶		1.71	%	1.57	%	1.50	%	1.50	%⁶

Net investment income	9.06	%⁶		11.34	%	10.35	%	10.04	%	8.67	%⁶

Expense waiver/reimbursement⁷	0.75	%⁶		0.79	%	0.99	%	2.03	%	8.46	%⁶

Supplemental Data:

Net assets, end of period (000 omitted)	$5,782			$6,246		$8,106		$6,037		$83

Portfolio turnover	102	%		87	%	128	%	93	%	0	%

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 Represents 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.

6 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

MAY 31, 2000 (UNAUDITED)

ORGANIZATION

Federated World Investment Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act") as an open-end, management investment company. The Corporation consists of nine portfolios. The financial statements included herein are only those of Federated International High Income Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held. The investment objective of the Fund is to seek a high level of current income.

The Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

U.S. government securities, listed corporate bonds, (other fixed income and asset-backed securities), and unlisted securities and private placement securities are generally valued at the mean of the latest bid and asked price as furnished by an independent pricing service. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. With respect to valuation of foreign securities, trading in foreign cities may be completed at times which vary from the closing of the New York Stock Exchange. Therefore, foreign securities are valued at the latest closing price on the exchange on which they are traded prior to the closing of the New York Stock Exchange. Foreign securities quoted in foreign currencies are translated into U.S. dollars at the foreign exchange rate in effect at noon, eastern time, on the day the value of the foreign security is determined. Investments in other open-end regulated investment companies are valued at net asset value.

Investment Income, Expenses and Distributions

Federal Taxes

Withholding taxes on foreign interest and dividends have been provided for in accordance with the applicable country's tax rules and rates.

At November 30, 1999, the Fund, for federal tax purposes, had a capital loss carryforward of $12,401,211, which will reduce the Fund's taxable income arising from future net gains on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of the distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal tax. Pursuant to the Code, such capital loss carryforward will expire as follows:

Expiration Year		Expiration Amount
2006		$2,542,891

2007		$9,858,320

When-Issued and Delayed Delivery Transactions

Foreign Exchange Contracts

Foreign Currency Translation

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Board of Directors (the "Directors"). The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Fund's pricing committee.

Additional information on each restricted security held at May 31, 2000 is as follows:

Security	Acquisition Date	Acquisition Cost
Jazztel PLC	4/1/1999	$539,537

Use of Estimates

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2000, par value shares ($0.001 per share) authorized were as follows:

Share Class Name		Number of Par Value Capital Stock Authorized
Class A Shares		100,000,000
Class B Shares		100,000,000
Class C Shares		100,000,000
TOTAL		300,000,000

Transactions in capital stock were as follows:

	Six Months Ended May 31, 2000					Year Ended November 30, 1999
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	1,530,549		$	11,931,641		2,849,099		$	22,174,915
Shares issued to shareholders in payment of distributions declared	42,799			327,345		63,306			489,301
Shares redeemed	(1,420,255	)		(11,060,135	)	(1,986,043	)		(15,363,119	)

NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	153,093		$	1,198,851		926,362		$	7,301,097


	Six Months Ended May 31, 2000					Year Ended November 30, 1999
Class B Shares:	Shares			Amount		Shares			Amount
Shares sold	738,730		$	5,706,756		2,775,564		$	21,581,257
Shares issued to shareholders in payment of distributions declared	119,256			913,944		250,505			1,936,099
Shares redeemed	(1,626,544	)		(12,560,426	)	(2,512,932	)		(19,426,004	)

NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	(768,558	)	$	(5,939,726	)	513,137		$	4,091,352


	Six Months Ended May 31, 2000					Year Ended November 30, 1999
	Six Months Ended May 31, 2000					Year Ended November 30, 1999
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	105,909		$	822,422		237,307		$	1,846,985
Shares issued to shareholders in payment of distributions declared	13,793			105,610		40,084			310,026
Shares redeemed	(139,185	)		(1,074,011	)	(481,064	)		(3,715,079	)

NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	(19,483	)	$	(145,979	)	(203,673	)	$	(1,558,068	)

NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(634,948	)	$	(4,886,854	)	1,235,826		$	9,834,381

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Global Investment Management Corp., the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.85% of the Fund's average daily net assets. The Adviser may voluntarily choose to waive any portion of its fee. The Adviser can modify or terminate this voluntary waiver at any time at its sole discretion.

Administrative Fee

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Class A Shares, Class B Shares and Class C Shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC.

Share Class Name		Percentage of Average Daily Net Assets of Class
Class A Shares		0.25%
Class B Shares		0.75%
Class C Shares		0.75%

Class A Shares did not incur a distribution services fee for the period ended May 31, 2000, and has no present intention of paying or accruing a distribution services fee.

Shareholder Services Fee

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

Organizational Expenses

Organizational and start-up administrative service expenses of $34,676 were borne initially by Adviser. The Fund has agreed to reimburse the Adviser for these expenses. These expenses have been deferred and are being amortized over five year period following effective date. For the six months ended May 31, 2000, the Fund paid $5,641 pursuant to this agreement.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the six months ended May 31, 2000, were as follows:

Purchases	$	89,598,587

Sales	$	93,510,446

CONCENTRATION OF CREDIT RISK

Line of Credit

Effective November 29, 1999, the Corporation entered into a $75,000,000 unsecured committed revolving line of credit ("LOC") agreement with State Street Corporation. The LOC was made available for extraordinary or emergency purposes, primarily for financing redemption payments. Borrowings are charged interest at a rate of 0.50% over the federal funds rate. The LOC includes a commitment fee of 0.08% per annum on the daily unused portion. As of May 31, 2000, there were no outstanding loans. During the six-month period ended May 31, 2000, the maximum outstanding borrowings were $1,830,000. The Fund had an average outstanding daily balance of $1,604,875 with a high and low interest rate of 6.31% and 4.50%, respectively, representing only the days the LOC was utilized. Interest expense totaled $626 for the six-month period ended May 31, 2000.

Directors

JOHN F. DONAHUE

THOMAS G. BIGLEY

JOHN T. CONROY, JR.

NICHOLAS P. CONSTANTAKIS

JOHN F. CUNNINGHAM

J. CHRISTOPHER DONAHUE

LAWRENCE D. ELLIS, M.D.

PETER E. MADDEN

CHARLES F. MANSFIELD, JR.

JOHN E. MURRAY, JR., J.D., S.J.D.

MARJORIE P. SMUTS

JOHN S. WALSH

Officers

JOHN F. DONAHUE

Chairman

RICHARD B. FISHER

President

HENRY A. FRANTZEN

Chief Investment Officer

J. CHRISTOPHER DONAHUE

Executive Vice President

EDWARD C. GONZALES

Executive Vice President

JOHN W. MCGONIGLE

Executive Vice President and Secretary

RICHARD J. THOMAS

Treasurer

G. ANDREW BONNEWELL

Assistant Secretary

Federated
World-Class Investment Manager

SEMI-ANNUAL REPORT

AS OF MAY 31, 2000

Federated International High Income Fund

Established 1996

4TH SEMI-ANNUAL REPORT

Federated
Federated International High Income Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated Securities Corp., Distributor

Cusip 31428U771
Cusip 31428U763
Cusip 31428U755

G01949-02 (7/00)

Federated is a registered mark of Federated Investors, Inc. 2000 ©Federated Investors, Inc.

Federated Investors
World-Class Investment Manager

Richard B. Fisher

President

Federated International Small Company Fund

President's Message

Dear Fellow Shareholder:

Federated International Small Company Fund was created in 1996, and I am pleased to present its fourth Semi-Annual Report. This fund's managers select well-researched small-cap international stocks from countries outside the United States.¹ These companies are not easily recognized, however, the average market cap is +$800 million and represent various industry sectors from health care products to technology to airlines. These exciting companies ignite your imagination. Furthermore, these stocks are in areas that have historically experienced remarkable investment growth: domestic consumption, product and service leaders, and technology. As of May 31, 2000, this $1.5 billion fund was invested in more than 290 small-cap stocks in 31 countries across 4 continents.

This report covers the six-month period from December 1, 1999 through May 31, 2000. It begins with an interview with the fund's portfolio manager, Leonardo A. Vila, Vice President of Federated Global Investment Management Corp. Following his discussion, which covers international market conditions and fund strategy, are three additional items of shareholder interest. First is a series of graphs showing the fund's investment performance. Second is a complete listing of the fund's global investments, and third is the publication of the fund's financial statements.

Broad diversification and outstanding stock selection continue to be the hallmarks of this fund and the fund has earned an overall 5-star Morningstar Rating™ out of 1,148 international equity funds as of June 30, 2000.² Individual share class total return performance for the six-month reporting period, including realized gains, follows.³

	Total Return	Capital Gains	Net Asset Value Change
Class A Shares	(1.94%)	$3.61	$35.17 to $31.19 = (11.32%)
Class B Shares	(2.35%)	$3.61	$34.21 to $30.12 = (11.96%)
Class C Shares	(2.39%)	$3.61	$34.19 to $30.09 = (11.99%)

While this fund has provided shareholders with strong returns since it began operation on February 28, 1996, I remind you that investing in international small companies can be volatile. There will inevitably be periods of negative short-term fluctuations, as well as the opportunity for highly positive returns such as those experienced since the fund's inception. Our group of global investment managers are optimistic about many countries' economic outlooks and continued enthusiasm for capitalism.

2 Morningstar proprietary ratings reflect historical risk-adjusted performance as of June 30, 2000. The ratings are subject to change every month. Past performance is no guarantee of future results. The Overall Morningstar Rating™ is a weighted average of the fund's three-, five-, and ten-year (if applicable) annual returns in excess of 90-day U.S. Treasury bill returns with appropriate fee adjustments, and a risk factor that reflects fund performance below 90-day U.S. Treasury bill returns. The fund received five stars for the three-year period out of 1,148 international equity funds. The top 10% of the funds in a broad asset class receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars, and the last 10% receive one star. Ratings are for the A Share Class only; other classes may vary. Source: Morningstar, Inc.© 2000. Morningstar does not guarantee the accuracy of this information. Past performance cannot guarantee future results. Morningstar is not affiliated with Federated.

[Graphic Representation Omitted - See Appendix]

3 Performance quoted is based on net asset value, represents past performance, and is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on the offering price (i.e., less any applicable sales charge), for Class A, B and C Shares were (7.34%), (7.20%) and (3.27%), respectively.

In this investment environment, I recommend that you add to your account on a regular basis to take advantage of price fluctuations by using the dollar-cost averaging method of investing, and to consider increasing a portion of your international investable dollars in the world's attractive markets.⁴

In the past six months, almost every international market has been effected by the six rate increases imposed by the Federal Reserve Board (the "Fed"), though international markets do not normally correlate with domestic markets. The effects of the Fed's six rate increases to fend off fears of U.S. inflation and to slow U.S. economic growth, influenced markets worldwide. We believe that the international markets will assert themselves as their respective economies mimic the United States' growth, and in many markets, international equity prices should become more attractive than U.S. stock valuations.

Thank you for participating in Federated International Small Company Fund. We hope that you are pleased with your investment.

Sincerely,

Richard B. Fisher

Richard B. Fisher
President
July 15, 2000

4 Systematic investing does not assure a profit or protect against loss in declining markets. Because dollar-cost averaging involves continuous investing regardless of fluctuating price levels, investors should consider their financial ability to continue purchases during periods of low price levels.

Leonardo A. Vila

Vice President

Federated Global Investment Management Corp.

Investment Review

What is your review of international small-cap stocks over the first half of the fund's fiscal year? Did volatility in the technology sector severely affect the fund?

International small companies began the new millennium quite strongly by continuing their upward charge from the fourth quarter of 1999, as the Year 2000 phenomena came and went unnoticed. Stock performance in Japan and Australia was disappointing, but this was offset by relatively strong performances in Europe. In the beginning of March, however, small-cap stocks were hit particularly hard by the sell-off in the highly rated growth sector, particularly the technology, media and telecommunications sectors (TMT).¹ This negatively impacted the fund's performance as we were heavily weighted in the TMT sectors. The sell-off continued into May as these sectors were out-of-favor with a rotation into "old economy" stocks.

How did Federated International Small Company Fund perform during the six-month period from December 1, 1999 through May 31, 2000?

The fund produced six-month total returns of (1.94%) for Class A Shares, (2.35%) for Class B Shares and (2.39%) for Class C Shares, based on net asset value.² These returns slightly underperformed the (1.61%) return of the small-cap international market, as represented by the MSCI Small Cap World ex-US Index.³ The fund also underperformed the 7.92% return of the 68 small company international funds as tracked by Lipper Analytical Services, Inc.⁴

What strategies and holdings accounted for the fund's performance?

An overweight position in TMT, which provided superior returns last year, hurt the fund's performance during the second quarter as the entire sector around the world sold off. However, we reduced our exposure in the TMT sectors significantly from 63.2% (as of March 31, 2000) to 38.5% (as of May 31, 2000) by selling or reducing our positions in companies like Securenet, Start Technology, Harmonic Drive Systems, ARM Holdings, Business Objects and Imagination Technologies.

Meanwhile, we found opportunities in defensive growth areas where volatility is much less of a factor. During the past three months we purchased companies like Hisamitsu Pharmaceutical, Elior, Jomed, Wedeco, and Proffice. The increase in gasoline prices prompted us to look at opportunities in the oil exploration and production sector, which have proven to be good investments for the fund. We built positions in companies like Gulf Canada Resources, Ensign Resource Service Group, TGS Nopec Geophysical and Fugro.

Can you highlight a few noteworthy additions to the portfolio during the reporting period?

The fund added the following holdings during the reporting period:

ERG Ltd. (Australia; Technology Hardware & Equipment; 0.33% of net assets): ERG manufactures, markets, installs and services automated fare collection equipment and systems. ERG also manufactures smart card systems and services and manufactures and markets telecommunication equipment while offering telecommunications and broadband infrastructure services.

2 Past performance is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on the offering price (i.e., less any applicable sales charge), for Class A, B and C Shares were (7.34%), (7.20%) and (3.27%), respectively.

3 The Morgan Stanley Capital International Small Cap World ex-U.S. Index is an unmanaged index of companies in 23 developed markets with U.S. dollar market capitalization of $200-$800 million. Investments cannot be made in an index.

4 Lipper figures represents the average of the total returns reported by all of the mutual funds designated by Lipper Analytical Services, Inc. as falling into the category indicated. Lipper figures do not take into account any sales charges.

Air Canada (Canada; Transportation; 0.44% of net assets): Air Canada provides international carrier service for scheduled and charter air transportation for passengers and cargo in Canada, the United States, Europe, Asia, the Middle East and the Caribbean islands.

Straumann Holding AG (Switzerland; Healthcare Equipment & Services; 0.63% of net assets): Straumann develops, produces and sells surgical implants and instruments for dental medicine along with jaw and facial surgery. The group has subsidiaries throughout Europe and North America and sells its products worldwide.

Pinguely-Haulotte (France; Capital Goods; 0.55% of net assets): Pinguely-Haulotte manufactures boom and platform trucks for lifting materials or reaching high places. The company's vehicles include scissors platforms, articulated booms, telescopic booms and vertical mast work platforms. These vehicles are used in steel frame construction, roofing, painting, pruning and industrial maintenance.

Where were the fund's assets invested as of May 31, 2000, and what were the fund's top ten holdings?

The portfolio was well-diversified across the following 31 countries.

Country	Percentage of Net Assets	Significant Change since November 30, 1999
United States	16.75%
Japan	11.23%	down from 29.4%
Switzerland	10.85%	up from 3.0%
Germany	10.77%
Canada	7.79%
United Kingdom	6.94%	down from 13.2%
France	5.05%
Sweden	4.69%
Denmark	3.57%
Hong Kong	3.42%	down from 6.0%
Netherlands	2.69%
Finland	2.18%
Spain	1.46%
Australia	1.42%	down from 6.3%
Norway	1.37%
Singapore	1.03%	down from 3.1%
Korea	0.98%	down from 2.7%
Ireland	0.75%
Taiwan	0.67%
Egypt	0.59%
Malaysia	0.47%
Israel	0.36%
New Zealand	0.30%
China	0.22%
Austria	0.22%
Hungary	0.18%
Italy	0.16%
Brazil	0.01%
Greece	0.00%¹
Indonesia	0.00%¹
India	0.00%¹

1 Amount represents less than 0.01%.

The regional breakdown as of May 31, 2000 was as follows:

Europe		50.88%
North America		24.54%
Asia/Pacific		19.74%
Mid-East Africa		0.95%
Latin America		0.01%

As of May 31, 2000, the fund's top ten holdings were:

Security Name	Country	Percentage of Assets	Industry
Vestas Wind Systems AS	Denmark	1.9%	Energy Sources
Matalan	United Kingdom	1.1%	Retailing
Tecis Holding AG	Germany	1.1%	Diversified Financials
Swisslog Holding AG	Switzerland	1.0%	Industrial Components
Kudelski SA	Switzerland	0.9%	Electronic, Components Instruments
Teligent AB	Sweden	0.8%	Technology Hardware & Equipment
Zapf Creation AG	Germany	0.8%	Consumer Durables & Apparel
Perlos Oyj	Finland	0.8%	Electronic, Components Instruments
Micronas Semiconductor Holding AG	Switzerland	0.8%	Technology Hardware & Equipment
Logitech International SA	Switzerland	0.8%	Technology Hardware & Equipment
TOTAL		10.0%

As we reach the mid-point of 2000, what is your outlook for the remainder of the year? And what themes will drive the fund's strategy?

In the short term, continued nervousness surrounding the TMT sectors should weigh on the fund's performance. Equally, uncertainty of the interest rate environment, and hence, the economic growth of the global economy, will continue to be a cloud. We remain positive, however, over the long term as we believe that small companies are the engines of growth for many economies. We continue to look for companies with a clear business model, focused on their core activities, and operating in either a niche market or in those in which they can display clear market share presence. Contrary to current market movements, we remain focused in the growth sector. Short-term weakness is inevitable, but following the tech "free-fall," some excellent buying opportunities have emerged.

Two Ways You May Seek to Invest for Success

INITIAL INVESTMENT

If you had made an initial investment of $5,000 in the Class A Shares of Federated International Small Company Fund on 2/28/96, reinvested dividends and capital gains, and did not redeem any shares, your account would have been worth $16,634 on 5/31/00. You would have earned a 32.48%¹ average annual total return for the investment life span.

One key to investing wisely is to reinvest all distributions in fund shares. This increases the number of shares on which you can earn future dividends, and you gain the benefit of compounding.

As of 6/30/00, the Class A Shares' average annual 1-year, 3-year, and since inception (2/28/96) total returns were 36.10%, 31.82%, and 32.60%, respectively. Class B Shares' average annual 1-year, 3-year, and since inception (2/28/96) total returns were 37.49%, 32.60%, and 33.17%, respectively. Class C Shares' average annual 1-year, 3-year, and since inception (2/28/96) total returns were 41.92%, 33.34%, and 33.32%, respectively.²

[Graphic Representation Omitted - See Appendix]

1 Total return represents the change in the value of an investment after reinvesting all income and capital gains, and takes into account the 5.50% sales charge applicable to an initial investment in Class A Shares. Data quoted represents past performance and does not guarantee future results. Investments return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost.

2 The total returns stated take into account all applicable sales charges. The maximum sales charges and contingent deferred sales charges for the fund are as follows: Class A Shares, 5.50% sales charge; Class B Shares, 5.50% contingent deferred sales charge; and, Class C Shares, 1.00% contingent deferred sales charge.

ONE STEP AT A TIME

$1,000 initial investment and subsequent investments of $1,000 each year for three years (reinvesting all dividends and capital gains) grew to $10,129.

With this approach, the key is consistency.

If you had started investing $1,000 annually in the Class A Shares of Federated International Small Company Fund on 2/28/96, reinvested your dividends and capital gains, and did not redeem any shares, you have invested only $5,000, but your account would have reached a total value of $10,129¹ by 5/31/00. You would have earned an average annual total return of 32.21%.

A practical investment plan helps you pursue long-term capital growth through stocks of small international companies. Through systematic investing, you buy shares on a regular basis and reinvest all earnings. An investment plan works for you when you invest only $1,000 annually. You can take it one step at a time. Put time, money, and compounding to work.

[Graphic Representation Omitted - See Appendix]

1 This chart assumes that the subsequent annual investments are made on the last day of each anniversary month. No method of investing can guarantee a profit or protect against loss in down markets.

Portfolio of Investments

MAY 31, 2000 (UNAUDITED)

Shares

Value in
U.S. Dollars

COMMON STOCKS--79.3%

Automobiles & Components--0.6%

231,250

Brembo SPA

2,459,489

106,600

Nokian Renkaat

3,281,931

180,000

Telecomunicaciones Y Energia SA

3,308,240

TOTAL

9,049,660

Banks--1.2%

165,900

AGF Management Ltd.

4,097,937

2,507

Bank Sarasin & Cie

5,955,610

163,061

Entrium Direct Bankers AG

7,834,578

100

HDFC Bank Ltd.

512

1,436,850

PT Bank Pan Indonesia, Warrants

14,160

TOTAL

17,902,797

Business & Public Services--4.0%

29,400

Cheil Communications, Inc.

3,487,915

45,000

Falck AS

6,832,752

81,650

GFK AG

3,328,863

305,000

^{1, 2}

Guardian IT

6,003,488

88,758

IPSOS

9,605,584

1,867,196

Saatchi & Saatchi PLC

8,859,867

2,402,000

Scoot.com PLC

5,581,908

736,000

Sembcorp Logistics Ltd.

4,246,113

854,000

Skillsgroup

2,134,776

1,397,000

Taylor Nelson

5,206,835

610,800

Trafficmaster PLC

4,580,520

TOTAL

59,868,621

Capital Goods--5.2%

785,000

Berisford

3,877,588

590,000

Bunka Shutter Co., Ltd.

1,161,320

226,750

Elcoteq Network Corp., Class A

5,711,752

100,000

Enplas Corp.

5,152,964

3,000,000

Furukawa Co.

5,403,649

183,800

GSI Lumonics Inc.

3,926,564

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Capital Goods--continued

10,000

Geberit International AG

3,210,900

815,000

Hitachi Koki Co.

2,799,777

96,000

Jenoptik AG

2,955,585

90,000

NEG Micon AS

3,711,619

1,535,000

Nachi Fujikoshi Corp.

2,636,600

450,000

Pinguely-Haulotte

8,228,618

9,000

Rieter Holdings Ltd.

5,918,246

10,400

Saurer Ag Arbon

5,914,692

47,000,000

Shenzhen International Holdings Ltd.

3,076,133

2,100,000

Tsugami Corp.

9,651,362

555,000

Uralita SA

3,857,514

TOTAL

77,194,883

Commercial Services & Supplies--1.7%

160,000

Buhrmann NV

4,873,730

5,000,000

Cosco Pacific Ltd.

3,721,646

31,160

DIS Deutsche Industrie Service

3,750,123

98,900

Proffice AB

2,972,284

242,000

Sato Corp.

6,628,290

1,617,462

Securicor PLC

2,905,316

TOTAL

24,851,389

Consumer Durables & Apparel--1.8%

225,800

Amer Group Ltd., Class A

6,088,076

1,400,000

Gunze Ltd.

4,185,507

2,700,000

Nisseki House Industry Co., Ltd.

3,534,655

238,029

Zapf Creation AG

12,491,388

TOTAL

26,299,626

Construction & Housing--0.3%

158,675

Abengoa SA

4,515,093

Diversified Financials--1.8%

416,000

Man (ED&F) Group PLC

3,163,261

2,400,000

Nichiei Co., Ltd.

5,704,470

1,610

OZ Holding AG

1,802,666

126,925

Tecis Holding AG

15,808,357

TOTAL

26,478,754

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Electronic, Components, Instruments--4.9%

9,619

ADVA AG Optical Networking

5,115,205

29,550

CE Consumer Electronic AG

3,832,045

2,686

CE Consumer Electronic AG, Rights

350,826

1,163,000

Datacraft Asia Ltd.

8,082,850

37,000

GFT Ges Fuer Technologiecon AG

6,903,829

450,000

Information Highway AB

4,057,213

176,745

Integra - Net SA

2,687,776

882,480

JOT Automation Group Oyj

5,170,384

1,274

Kudelski SA

14,170,231

342,000

Perlos Oyj

12,284,151

1,616

Phonak Holding AG

3,829,384

8,000

SEZ Holding AG

6,161,137

TOTAL

72,645,031

Energy Equipment & Services--3.9%

36,300

Bonavista Petroleum Ltd.

639,776

262,000

Canadian Hunter Exploration Ltd.

6,078,176

190,700

Crestar Energy Inc.

2,832,682

110,000

Ensign Resource Service Group, Inc.

3,822,351

625,000

Fletcher Challenge Energy

1,644,679

84,000

Fugro NV

4,694,230

475,400

Genesis Exploration Ltd.

3,697,450

227,500

Gulf Canada Resources Ltd.

1,131,501

193,000

Precision Drilling Corp.

7,453,802

1,113,000

Ranger Oil Ltd.

5,647,106

399,400

Renaissance Energy Ltd.

4,092,924

298,200

Rio Alto Exploration Ltd.

5,962,407

1,400,000

Santos Ltd.

3,597,299

285,200

TGS Nopec Geophysical Co. ASA

3,769,656

110,000

Talisman Energy Inc.

3,524,935

TOTAL

58,588,974

Energy Sources--1.9%

781,000

Vestas Wind Systems AS

28,597,333

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Food & Household Products--1.8%

117,000

Danisco

4,225,621

124,060

Hite Brewery Co.

4,009,022

250,000

Kamps AG

6,647,268

212,000

Kirin Beverage Corp.

5,481,825

92,000

Nutreco Holding NV

3,574,877

72,000

Rock Field Co.

3,543,011

TOTAL

27,481,624

Health Care Equipment & Services--2.9%

110,100

Card-Guard Scientific Survival Ltd.

4,761,434

960

Disetronic Holdings AG

6,139,337

101,200

Jomed NV

3,896,919

245,000

Santen Pharmaceutical Co., Ltd.

5,004,410

7,534

Straumann Holding AG

9,372,867

11,393

Tecan AG

9,955,376

4,280

Unilabs AG

4,485,379

TOTAL

43,615,722

Hotels Restaurants & Leisure--1.2%

20,000

Club Mediterranee

2,518,964

74,000

Four Seasons Hotels Inc.

4,391,882

8,838

Kuoni Reisen, Rights

3,560,332

48,000

People Co., Ltd.

3,480,618

982

Reiseburo Kuoni AG, Class B

425,844

89,700

Saint Marc Co., Ltd.

3,139,771

Yoshinoya D&C Co., Ltd.

612,785

TOTAL

18,130,196

Industrial Components--1.5%

658,000

Nippon Thompson

8,204,763

32,050

Swisslog Holding AG

14,904,769

TOTAL

23,109,532

Materials--4.1%

357,000

Abitibi-Consolidated Inc.

3,634,589

418,000

Agrium Inc.

4,618,399

190,025

Arkivator AB

4,759,085

4,000,000

Daido Steel Co.

8,430,435

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Materials--continued

2,734,000

Dowa Mining Co.

8,122,927

5,791

Gretag-Macbeth Holding AG

4,044,780

600,000

Honam Petrochem Cp

4,462,151

142,100

Kloeckner Werke

2,664,701

5,758

Mikron Holding AG

4,328,733

64,000

Muehl Product & Service AG

2,585,391

1,300,000

Nippon Denko Co., Ltd.

1,955,341

180,000

Nova Chemicals Corp.

3,677,148

1,100,000

Pacific Metals Co., Ltd.

2,808,598

897,376

Phoenix Mining Ltd., Rights

28,182

897,376

Phoenix Mining Ltd.

56,364

2,761,345

Rotternos AB

2,827,735

198,750

Smurfit Stone Container Corp.

2,819,766

TOTAL

61,824,325

Media--3.1%

1,489,500

Asia Satellite Telecommunications Holdings Ltd.

4,472,944

200,000

Capital Radio

3,770,174

49,311

Computec Media AG

897,091

101,700

Corus Entertainment, Inc., Class B

2,698,828

1,012,500

HIT Entertainment PLC

5,414,337

75,000

Kinowelt Medien AG

3,848,418

41,310

LG Ad Inc.

2,739,371

176,420

Modern Times Group, Class B

7,903,946

4,800

NRJ SA

2,642,114

3,790

Pegasus Publishing

38,370

176,700

Quebecor World, Inc.

4,158,272

210,000

Schibsted AS

4,092,971

1,348,000

Shaw Brothers (Hong Kong) Ltd.

1,254,195

613,000

Star Publications (Malaysia)

2,403,605

TOTAL

46,334,636

Merchandising--0.7%

Delta Galil Industries Ltd.

2,716,000

Esprit Asia Holdings Ltd.

2,753,556

4,619,200

Giordano International Ltd.

7,232,088

TOTAL

9,985,653

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Pharmaceuticals & Biotechnology--4.5%

165,000

Cambridge Antibody Technology Group PLC

5,692,892

1,664,000

China Pharmaceutical Enterprise and Investment Corp. Ltd., Warrants

16,657

600,000

Dainippon Pharmaceutical Co., Ltd.

6,378,534

61,800

EGIS

2,668,106

45,000

Genset SA

3,350,223

280,000

Hisamitsu Pharmaceutical Co., Inc.

8,397,010

55,000

Kobayashi Pharmaceutical Co., Ltd.

4,876,747

102,850

NeuroSearch AS

7,454,854

713,000

Nutri Pharma ASA

2,747,376

22,300

Oridion Systems Ltd.

543,629

116,000

Oxford GlycoSciences PLC

2,517,700

69,000

Sanochemia Pharmazeutika AG

3,218,677

397,000

Shire Pharmaceuticals Group PLC

5,883,066

2,440,000

SkyePharma PLC

3,424,042

204,000

Zeltia SA

10,058,505

TOTAL

67,228,018

Real Estate--0.3%

92,000

Meiwa Estate

2,895,687

83,000

Sumisho Lease Co., Ltd.

1,309,289

TOTAL

4,204,976

Retailing--3.9%

87,000

Beter Bed Holding NV

2,909,824

1,789

Jelmoli Holding AG

2,321,037

2,486,000

Li & Fung Ltd.

10,655,767

85,000

Macintosh Confect

2,299,721

2,115,000

Matalan

16,525,664

31,144

Medion AG

2,847,467

50,000

Nitori Co.

1,880,136

68,000

Right On Co.

4,924,562

1,600,000

Seiyu

6,521,517

15,500

Toys `R' Us - Japan Ltd.

2,489,671

375,000

Uny Co.

4,623,741

TOTAL

57,999,107

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Software & Services--11.2%

5,202,849

Access1 Ltd.

1,812,204

19,953

Alten

3,283,712

432,500

Aspiro AB

2,305,961

55,800

Autonomy Corp.

6,054,300

25,050

Biodata Information Technology AG

7,338,303

87,201

Brokat Infosystems AG

9,762,499

145,500

Cognicase Inc.

2,816,944

54,190

Comroad AG

5,814,003

12,067

Cross Systems Co.

2,048,939

239,300

DataMirror Corp.

2,795,747

46,200

Descartes Systems Group, Inc.

1,279,992

22,420

Distefora Holding AG

5,963,614

100,000

Diversinet Corp.

678,125

25,655

Enea Data AB

4,306,293

57,500

FI System

2,733,193

147,000

Fimatex

2,498,757

75,100

Fluxx.com AG

3,853,549

31,535

Heyde AG Beratung

4,736,712

703,345

ITG Group PLC

6,864,265

320,000

Infosources

3,373,547

68,300

Jet Multimedia

4,262,900

217,200

MGI Software Corp.

2,610,054

144,200

Microforum Inc., Warrants

963

542,700

Mosaic Group, Inc.

6,630,222

29,100

Nippon Systemware Co., Ltd.

1,842,644

245,000

Nocom AB, Class B

681,768

75,580

Norcom Information Technology AG

5,640,988

168,200

Norman ASA

2,637,692

30,100

Opticom ASA

3,000,728

170,000

Ordina Beheer NV

5,551,052

143,800

RM PLC

1,437,849

1,016,400

Readsoft AB

7,240,605

12,931

SR Teleperformance

4,168,103

982,932

Securenet Ltd.

3,670,040

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Software & Services--continued

112,200

Sigma AB, Class B

3,184,662

59,549

Sinnerschrader AG

1,780,577

239,400

Tecsys Inc.

1,885,920

1,184,000

Telelogic AB

8,566,340

25,000

Teleplan International NV

4,151,627

38,500

Telesens AG

1,698,948

46,600

Tiscon Infosystems

4,608,399

24,800

Unilog SA

2,579,793

82,000

Unit 4

3,274,281

290,000

Valtech

3,923,054

185,400

XRT-CERG

1,364,725

TOTAL

166,714,593

Technology Hardware & Equipment--12.0%

2,365,000

ASM Pacific Technology Ltd.

8,498,187

1,283

Ascom Holding AG

3,876,363

26,025

Avenir Telecom

5,827,205

198,050

BE Semiconductor Industries NV

3,159,579

1,500,000

D-Link Corp.

4,965,920

760,000

Dainippon Screen Manufacturing Co., Ltd.

5,927,301

90,000

Dialog Semiconductor PLC

4,366,205

80,500

Elmos Semiconductor AG

4,017,982

1,030,354

ERG Ltd.

4,871,977

2,399

Esec Holding AG

4,761,049

13,320

Feintool International Holding AG

5,831,445

40,900

Gretag Imaging Group

7,753,555

55,000

Infineon Technologies AG

3,596,988

42,000

Ingenico

3,996,757

26,213

Intercall

1,714,324

97,200

Kontron Embedded Computers AG

6,846,546

13,600

LPKF Laser & Electronics

3,527,297

3,048,000

Legend Holdings Ltd.

3,090,147

19,750

Logitech International SA

11,524,733

1,100,000

Microelectronics

5,069,782

23,150

Micronas Semiconductor Holding AG

11,794,431

Shares

Value in
U.S. Dollars

COMMON STOCKS--continued

Technology Hardware & Equipment--continued

34,500

Micronic Laser Systems AB

645,147

239,800

Mitel Corp.

4,378,483

105,000

Moritex Corp.

8,754,468

Net One Systems Co., Ltd.

1,941,414

460,000

Pace Micro Technology PLC

6,265,810

15,300

Pandatel AG

1,477,373

65,350

Partner Tech AB

989,270

15,989

Silicon-On-Insulator Technologies (SOITEC)

4,558,615

8,150,000

Stone Electronic Technology

2,248,709

249,435

SwitchCore AB

3,248,430

164,000

Tandberg ASA

2,966,788

501,300

Teligent AB

12,554,820

82,000

Tomen Electronics Corp.

3,540,226

120,000

Toyo Corp.

3,710,134

210,300

Trintech Group PLC, ADR

4,284,863

127,000

Wi-Lan Inc.

2,306,162

TOTAL

178,888,485

Telecommunication Services--3.4%

722,850

AAPT, Ltd.

2,439,336

74,500

Clearnet Communications Inc.

2,141,875

2,250,000

Digi Swisscom Berhad

4,559,211

1,465,000

FiberTel Ltd.

943,589

3,736,000

Global Tech Holdings, Ltd.

4,051,359

2,662,000

Keppel Telecom & Transport

3,071,509

197,300

Manitoba Telecom Services

3,477,348

78,000

Metabox AG

6,207,288

215,554

MobiNil

8,855,411

3,941,000

Open Telecommunications Ltd.

3,803,024

504,500

SR Telecom Inc.

2,694,439

127,500

Utfors AB

3,689,893

157,550

Versatel Telecom International NV

5,688,368

TOTAL

51,622,650

Shares or
Principal
Amount

Value in
U.S. Dollars

COMMON STOCKS--continued

Transportation--1.1%

499,000

Air Canada

6,512,751

2,800,000

Air New Zealand Ltd., Class B

2,806,310

60,900

Bergesen d.y. AS, Class B

1,186,962

30,000,000

China Eastern Airlines Corp., Ltd.

3,310,982

93,600

DSV, De Sammensluttede Vognmad AS

2,456,417

TOTAL

16,273,422

Utilities--0.3%

130,000

Wedeco AG Water Technology

4,560,259

TOTAL COMMON STOCKS (IDENTIFIED COST $1,015,184,060)

1,183,965,359

PREFERRED STOCKS--0.2%

Capital Goods--0.0%

156,600

Construtora Sultepa SA, Preference

122,672

Retailing--0.2%

90,000

Fielmann AG, Pfd.

3,358,619

TOTAL PREFERRED STOCKS (IDENTIFIED COST $3,498,393)

3,481,291

REPURCHASE AGREEMENT--16.6%³

247,170,000

Paribas Corp., 6.58%, dated 5/31/2000, due 6/1/2000 (at amortized cost)

247,170,000

TOTAL INVESTMENTS (IDENTIFIED COST $1,265,852,453)⁴

1,434,616,650

1 Non-income producing security.

4 The cost of investments for federal tax purposes amounts to $1,265,852,453. The net unrealized appreciation of investments on a federal tax basis amounts to $168,764,197 which is comprised of $297,980,387 appreciation and $129,216,190 depreciation at May 31, 2000.

Note: The categories of investments are shown as a percentage of net assets ($1,492,690,374) at May 31, 2000.

The following acronym is used throughout this portfolio:

ADR	--American Depositary Receipt

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

MAY 31, 2000 (UNAUDITED)

Assets:

Investment in repurchase agreement

247,170,000

Investments in securities

1,187,446,650

Total investments in securities, at value (identified and tax cost $1,265,852,453)

1,434,616,650

Cash

3,087

Cash denominated in foreign currencies (identified cost $45,704,833)

47,178,353

Income receivable

732,171

Receivable for investments sold

25,130,514

Receivable for shares sold

3,995,396

Deferred organizational costs

8,328

TOTAL ASSETS

1,511,664,499

Liabilities:

Payable for investments purchased

14,470,800

Payable for shares redeemed

1,196,094

Net payable for foreign currency exchange contracts

16,036

Accrued expenses

3,291,195

TOTAL LIABILITIES

18,974,125

Net assets for 48,725,406 shares outstanding

1,492,690,374

Net Assets Consist of:

Paid-in capital

1,182,005,541

Net unrealized appreciation of investments and translation of assets and liabilities in foreign currency

170,079,706

Accumulated net realized gain on investments and foreign currency transactions

153,501,540

Accumulated net operating loss

(12,896,413

)

TOTAL NET ASSETS

1,492,690,374

Net Asset Value, Offering Price and Redemption Proceeds Per Share

Class A Shares:

Net Asset Value Per Share ($738,028,387 ÷ 23,664,088 shares outstanding)

$31.19

Offering Price Per Share (100/94.50 of $31.19)¹

$33.01

Redemption Proceeds Per Share

$31.19

Class B Shares:

Net Asset Value Per Share ($561,345,716 ÷ 18,636,677 shares outstanding)

$30.12

Offering Price Per Share

$30.12

Redemption Proceeds Per Share (94.50/100 of $30.12)¹

$28.46

Class C Shares:

Net Asset Value Per Share ($193,316,271 ÷ 6,424,641 shares outstanding)

$30.09

Offering Price Per Share

$30.09

Redemption Proceeds Per Share (99.00/100 of $30.09)¹

$29.79

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)

Investment Income:

Dividends (net of foreign taxes withheld of $351,942)

3,103,118

Interest

3,083,238

TOTAL INCOME

6,186,356

Expenses:

Investment adviser fee

9,945,106

Administrative personnel and services fee

599,108

Custodian fees

482,113

Transfer and dividend disbursing agent fees and expenses

606,677

Directors'/Trustees' fees

2,212

Auditing fees

9,610

Legal fees

5,687

Portfolio accounting fees

141,169

Distribution services fee--Class A Shares

521,900

Distribution services fee--Class B Shares

2,349,068

Distribution services fee--Class C Shares

786,881

Shareholder services fee--Class A Shares

421,804

Shareholder services fee--Class B Shares

783,023

Shareholder services fee--Class C Shares

262,294

Share registration costs

154,339

Printing and postage

109,595

Insurance premiums

2,521

Taxes

56,740

Miscellaneous

32,126

TOTAL EXPENSES

17,271,973

Net operating loss

(11,085,617

)

Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:

Net realized gain on investments and foreign currency transactions (net foreign taxes withheld of $3,003,542)

155,232,947

Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency

(255,828,563

)

Net realized and unrealized loss on investments and foreign currency transactions

(100,595,616

)

Change in net assets resulting from operations

(111,681,233

)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Six Months
Ended
(unaudited)
May 31,
2000

Year Ended
November 30,
1999

Increase (Decrease) in Net Assets

Operations:

Net operating loss

(11,085,617

)

(9,114,675

)

Net realized gain on investments and foreign currency transactions ($155,232,947 and $129,930,928, respectively, as computed for federal tax purposes)

155,232,947

131,618,106

Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency

(255,828,563

)

368,102,747

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS

(111,681,233

)

490,606,178

Distributions to Shareholders:

Distributions from net realized gain on investments and foreign currency transactions

Class A Shares

(54,105,916

)

(2,408,765

)

Class B Shares

(50,121,718

)

(3,131,436

)

Class C Shares

(15,799,858

)

(807,825

)

CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS

(120,027,492

)

(6,348,026

)

Share Transactions:

Proceeds from sale of shares

1,944,961,159

895,563,251

Net asset value of shares issued to shareholders in payment of distributions declared

105,355,672

5,607,305

Cost of shares redeemed

(1,438,792,945

)

(657,706,270

)

CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS

611,523,886

243,464,286

Change in net assets

379,815,161

727,722,438

Net Assets:

Beginning of period

1,112,875,213

385,152,775

End of period

1,492,690,374

1,112,875,213

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended November 30,

2000

1999

1998

1997

1996

Net Asset Value, Beginning of Period

$35.17

$17.56

$14.25

$12.26

$10.00

Income From Investment Operations:

Net operating loss

(0.19

)

(0.26

)²

(0.17

)²

(0.11

)

(0.02

)

Net realized and unrealized gain (loss) on investments and foreign currency transactions

(0.18

)

18.15

3.48

2.10

2.28

TOTAL FROM INVESTMENT OPERATIONS

(0.37

)

17.89

3.31

1.99

2.26

Less Distributions:

Distributions from net realized gain on investments and foreign currency transactions

(3.61

)

(0.28

)

Net Asset Value, End of Period

$31.19

$35.17

$17.56

$14.25

$12.26

Total Return³

(1.94%

)

103.45

23.23

16.23

22.60

Ratios to Average Net Assets:

Expenses

1.78

%⁴

2.03

1.95

2.12

1.97

%⁴

Net operating loss

(0.99

%)⁴

(1.05

(0.97

(1.08

(0.48

%)⁴

Expense waiver/reimbursement⁵

0.21

3.38

%⁴

Supplemental Data:

Net assets, end of period (000 omitted)

$738,028

$506,117

$147,490

$91,707

$16,399

Portfolio turnover

128

321

380

286

174

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 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.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended November 30,

2000

1999

1998

1997

1996

Net Asset Value, Beginning of Period

$34.21

$17.20

$14.07

$12.20

$10.00

Income From Investment Operations:

Net operating loss

(0.25

)

(0.41

)²

(0.29

)²

(0.12

)

(0.04

)

Net realized and unrealized gain (loss) on investments and foreign currency transactions

(0.23

)

17.70

3.42

1.99

2.24

TOTAL FROM INVESTMENT OPERATIONS

(0.48

)

17.29

3.13

1.87

2.20

Less Distributions:

Distributions from net realized gain on investments and foreign currency transactions

(3.61

)

(0.28

)

Net Asset Value, End of Period

$30.12

$34.21

$17.20

$14.07

$12.20

Total Return³

(2.35%

)

102.11

22.25

15.33

22.00

Ratios to Average Net Assets:

Expenses

2.53

%⁴

2.78

2.70

2.87

2.72

%⁴

Net operating loss

(1.76

%)⁴

(1.80

(1.72

(1.81

(1.61

%)⁴

Expense waiver/reimbursement⁵

0.17

3.38

%⁴

Supplemental Data:

Net assets, end of period (000 omitted)

$561,346

$462,524

$189,965

$120,939

$16,721

Portfolio turnover

128

321

380

286

174

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 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.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended November 30,

2000

1999

1998

1997

1996

Net Asset Value, Beginning of Period

$34.19

$17.19

$14.06

$12.19

$10.00

Income From Investment Operations:

Net operating loss

(0.24

)

(0.42

)²

(0.29

)²

(0.12

)

(0.05

)

Net realized and unrealized gain (loss) on investments and foreign currency tranasctions

(0.25

)

17.70

3.42

1.99

2.24

TOTAL FROM INVESTMENT OPERATIONS

(0.49

)

17.28

3.13

1.87

2.19

Less Distributions:

Distributions from net realized gain on investments and foreign currency transactions

(3.61

)

(0.28

)

Net Asset Value, End of Period

$30.09

$34.19

$17.19

$14.06

$12.19

Total Return³

(2.39

102.11

22.26

15.34

21.90

Ratios to Average Net Assets:

Expenses

2.53

%⁴

2.78

2.70

2.87

2.72

%⁴

Net operating loss

(1.75

%)⁴

(1.80

(1.72

(1.85

(1.58

%)⁴

Expense waiver/reimbursement⁵

0.17

3.38

%⁴

Supplemental Data:

Net assets, end of period (000 omitted)

$193,316

$144,234

$47,697

$27,412

$3,040

Portfolio turnover

128

321

380

286

174

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 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.

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

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

MAY 31, 2000 (UNAUDITED)

ORGANIZATION

Federated World Investment Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act"), as an open-end, management investment company. The Corporation consists of nine portfolios. The financial statements included herein are only those of Federated International Small Company Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held.

The Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares. The investment objective of the Fund is to provide long-term growth of capital.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuation

Foreign equity securities are valued at the last sale price reported in the market in which they are primarily traded. If no sale on the recognized exchange is reported or the security is traded over-the-counter, the foreign securities are valued at the mean between the last closing bid and asked prices. Short-term securities are valued at the prices provided by an independent pricing service. However, short-term foreign and domestic securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value.

Repurchase Agreements

The Fund will only enter into repurchase agreements with banks and other recognized financial institutions, such as broker/dealers, which are deemed by the Fund's adviser to be creditworthy pursuant to the guidelines and/or standards reviewed or established by the Board of Directors (the "Directors"). Risks may arise from the potential inability of counterparties to honor the terms of the repurchase agreement. Accordingly, the Fund could receive less than the repurchase price on the sale of collateral securities. The Fund, along with other affiliated investment companies, may utilize a joint trading account for the purpose of entering into one or more repurchase agreements.

Investment Income, Expenses and Distributions

Federal Taxes

Withholding taxes on foreign interest and dividends have been provided for in accordance with the applicable country's tax rules and rates.

When-Issued and Delayed Delivery Transactions

Foreign Exchange Contracts

At May 31, 2000, the Fund had outstanding foreign currency commitments as set forth below:

Settlement Date	Contracts to Receive	In Exchange For	Contracts at Value	Unrealized Appreciation (Depreciation)
Contracts Sold:
6/1/2000	270,026 Australian Dollars	$155,670	$154,185	$ 1,485

6/1/2000	27,118,361 Japanese Yen	254,108	251,784	2,324

6/1/2000	351,283 Pound Sterling	517,097	525,818	(8,721	)

6/2/2000	31,854,164 Japanese Yen	296,401	295,754	647

6/2/2000	436,323 Pound Sterling	641,404	653,109	(11,705	)

6/5/2000	265,580 Pound Sterling	397,467	397,533	(66	)

NET UNREALIZED DEPRECIATION ON FOREIGN EXCHANGE CONTRACTS				$(16,036	)

Foreign Currency Translation

Restricted Securities

Restricted securities are securities that may only be resold upon registration under federal securities laws or in transactions exempt from such registration. In some cases, the issuer of restricted securities has agreed to register such securities for resale, at the issuer's expense either upon demand by the Fund or in connection with another registered offering of the securities. Many restricted securities may be resold in the secondary market in transactions exempt from registration. Such restricted securities may be determined to be liquid under criteria established by the Directors. The Fund will not incur any registration costs upon such resales. The Fund's restricted securities are valued at the price provided by dealers in the secondary market or, if no market prices are available, at the fair value as determined by the Fund's pricing committee.

Use of Estimates

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2000, par value shares ($0.001 per share) authorized were as follows:

Share Class Name		Number of Par Value Capital Stock Authorized
Class A Shares		100,000,000
Class B Shares		100,000,000
Class C Shares		100,000,000
TOTAL		300,000,000

Transactions in capital stock were as follows:

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class A Shares:

Shares

Amount

Shares

Amount

Shares sold

40,557,868

1,534,098,802

24,254,356

608,752,260

Shares issued to shareholders in payment of distributions declared

1,332,849

45,568,854

110,993

2,000,099

Shares redeemed

(32,615,347

)

(1,238,909,450

)

(18,375,105

)

(463,768,227

)

NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS

9,275,370

340,758,206

5,990,244

146,984,132

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class B Shares:

Shares

Amount

Shares

Amount

Shares sold

6,009,081

229,347,131

7,129,755

170,058,067

Shares issued to shareholders in payment of distributions declared

1,367,014

45,289,193

162,104

2,859,519

Shares redeemed

(2,257,897

)

(84,322,925

)

(4,817,613

)

(111,397,855

)

NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS

5,118,198

190,313,399

2,474,246

61,519,731

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class C Shares:

Shares

Amount

Shares

Amount

Shares sold

4,911,885

181,515,226

5,126,323

116,752,924

Shares issued to shareholders in payment of distributions declared

437,790

14,497,625

42,410

747,687

Shares redeemed

(3,143,069

)

(115,560,570

)

(3,724,929

)

(82,540,188

)

NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS

2,206,606

80,452,281

1,443,804

34,960,423

NET CHANGE RESULTING FROM SHARE TRANSACTIONS

16,600,174

611,523,886

9,908,294

243,464,286

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Administrative Fee

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp. ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Fund's Class A Shares, Class B Shares and Class C Shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC.

Share Class Name		Percentage of Average Daily Net Assets of Class
Class A Shares		0.25%
Class B Shares		0.75%
Class C Shares		0.75%

Shareholder Services Fee

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

Organizational Expenses

Organizational expenses of $47,932 were borne initially by the Adviser. The Fund has reimbursed the Adviser for these expenses. These expenses have been deferred and are being amortized over the five-year period following the Fund's effective date. For the period ended May 31, 2000, the Fund expensed $6,246 of organizational expenses.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the six-month period ended May 31, 2000, were as follows:

Purchases	$	1,959,799,245

Sales	$	1,786,147,593

CONCENTRATION OF CREDIT RISK

LINE OF CREDIT AGREEMENT

Directors

JOHN F. DONAHUE

THOMAS G. BIGLEY

JOHN T. CONROY, JR.

NICHOLAS P. CONSTANTAKIS

JOHN F. CUNNINGHAM

J. CHRISTOPHER DONAHUE

PETER E. MADDEN

CHARLES F. MANSFIELD, JR.

JOHN E. MURRAY, JR., J.D., S.J.D.

MARJORIE P. SMUTS

JOHN S. WALSH

Officers

JOHN F. DONAHUE

Chairman

RICHARD B. FISHER

President

HENRY A. FRANTZEN

Chief Investment Officer

J. CHRISTOPHER DONAHUE

Executive Vice President

EDWARD C. GONZALES

Executive Vice President

JOHN W. MCGONIGLE

Executive Vice President and Secretary

RICHARD J. THOMAS

Treasurer

G. ANDREW BONNEWELL

Assistant Secretary

Federated
World-Class Investment Manager

SEMI-ANNUAL REPORT

AS OF MAY 31, 2000

Federated International Small Company Fund

Established 1996

4TH SEMI-ANNUAL REPORT

Federated
Federated International Small Company Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated Securities Corp., Distributor

Cusip 31428U748
Cusip 31428U730
Cusip 31428U722

G01743-02 (7/00)

Federated Investors
World-Class Investment Manager

Richard B. Fisher

President

Federated World Utility Fund

President's Message

Dear Fellow Shareholder:

Federated World Utility Fund was created in 1994, and I am pleased to present its seventh Semi-Annual Report. As of May 31, 2000, the fund's net assets totaled $142.2 million and were invested in over 65 stocks in ten countries. This fund provides opportunities for income and capital growth by owning a diversified portfolio of recognizable utility corporations (domestic and international) stocks and convertible securities in the electric, natural gas, water, and telecommunications sectors.¹ Typical holdings include: Enron, Columbia Energy, GTE, Dynegy and Peco Energy.

This report covers the six-month reporting period from December 1, 1999 through May 31, 2000. It begins with an interview with Richard J. Lazarchic, Vice President, who co-manages the fund with Richard M. Winkowski, Vice President, both of Federated Global Investment Management Corp. Following their discussion are three additional items of shareholder interest. First is a series of graphs showing the fund's long-term investment performance. Second is a complete listing of the fund's global investments, and third is the publication of the fund's financial statements.

The fund's performance was affected by the volatility in the technology sector during the reporting period. The fund's assets remained focused on the United States (95.3% of net assets) for defensive purposes and includes a combination of value-oriented electric and natural gas stocks, and growth-intensive telecommunications holdings. Individual share class total return performance for the six-month reporting period, including capital gains, is as follows:²

	Total Return	Capital Gains	Net Asset Value Change
Class A Shares	1.17%	$2.67	$19.61 to $17.23 = (12.14%)
Class B Shares	0.83%	$2.67	$19.47 to $17.03 = (12.53%)
Class C Shares	0.83%	$2.67	$19.48 to $17.04 = (12.53%)

1 International investing involves special risks including currency risk, increased volatility of foreign securities, and differences in auditing and other financial standards. Funds whose investments are concentrated in a specific industry or sector may be subject to a higher degree of market risk than funds whose investments are diversified. In addition, utility securities are interest rate sensitive and a rise in interest rates can cause their value to fall.

2 Performance quoted is based on net asset value, represents past performance, and is no guarantee of future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. Total returns for the period, based on offering price (i.e., less any applicable sales charge), for Class A, B, and C Shares were (4.39%), (3.98%), and (0.05%), respectively.

Thank you for joining the growing number of shareholders who have entrusted this global utility fund with a portion of their wealth. Remember, adding to your investment account and reinvesting your dividends in additional shares is a convenient, painless way to "pay yourself first" and enjoy the benefit of compounding from the shares you buy today.

We welcome your comments and suggestions.

Sincerely,

Richard B. Fisher

Richard B. Fisher
President
July 15, 2000

Richard Lazarchic

Vice President

Federated Global Investment Management Corp.

Richard Winkowski

Vice President

Federated Global Investment Management Corp.

Investment Review

What are your comments on the global utility market? Have utility and telecommunications stocks experienced volatility as other equity sectors have?

There was a drastic change in the utility landscape during the second quarter. The first change was a rapid continuation of sharp drops in many of the fast-growing CLECs (Competitive Local Exchange Carriers), which had led the NASDAQ charge in the preceding six months (i.e., the NASDAQ reached a level of 5000 at its peak). The other major change was on the electric utility side, where many of the distributed energy stocks, like fuel cells and microturbine manufacturers, also gave back many of their gains. The one offsetting sector in the industry was in the natural gas area, where elevated natural gas prices and warmer-than-normal weather throughout the country led to electricity price spikes and interest in the whole energy area.

Technology continues to change both the telecommunication and electric utility markets. In the former area, bandwidth continues to drive wire line growth, while 3G (Third Generation) is beginning to add a new dimension to the fast-growing wireless arena. In the latter area, distributed energy, or high lines reliability, is being demanded more and more from suppliers. Technology will be used to transform today's one-way electric grid into an intelligent, managed power network. In order to achieve this, elaborate backup systems are being formulated utilizing among other devices, fuel cells (still costly), microturbines (small jet engines), fly wheels (bulky, but cheap), solar panels (expensive to install), advanced battery systems and exotic superconductors. All of these combine power storage, superconductivity, and high-speed switching, which will be facilitated by the Internet and advanced communication networks, many of which already exist. Thus, even the stodgy electric utility area is using technology to provide power reliability that, in many cases, now exceeds power costs as a firm's chief consideration.

What were the fund's returns for the six-month reporting period ended on May 31, 2000?

The fund's six-month total returns for Class A, B, and C Shares were 1.17%, 0.83%, and 0.83%, respectively, based on net asset value.¹ These returns underperformed the 5.58% average total return of the 100 utility funds tracked by Lipper Analytical Services.² The fund's returns were, however, greater than the (3.37%) return of the overall world utility market as measured by FT/S&P Global Utility Index.³

What accounted for the fund's performance?

Although Federated World Utility Fund underperformed the domestic utility index, it did outperform its primary benchmark, FT/S&P Global Utility Index, due to changes in the make up of the fund. Even though we had been selling down our overweighted telecommunication positions and adding to natural gas and electric utilities, we were not nimble enough to avoid the huge NASDAQ sell-off during the last two weeks of March. During that time and also during the first half of April, our weighting in telecommunication services went from roughly 75% to 25%, while our traditional utility weighting went from about 10% to over 40% by May 31, 2000.

2 Lipper figures represent the average of the total returns reported by all of the mutual funds designated by Lipper Analytical Services as falling into the category indicated. Lipper returns do not take sales charges into account.

3 FT/S&P Global Utility Index is an unmanaged, market cap-weighted index of utility securities from 24 countries, both developed and emerging markets, with approximately 174 companies. Investments cannot be made in an index.

What were some of the fund's recent purchases?

Recent purchases included the following companies:

Columbia Energy Group (United States; Natural Gas; 4.1% of net assets): Columbia Energy Group is involved in natural gas transmission, natural gas distribution, and exploration for and production of natural gas and oil. The company is also involved in related energy businesses including the marketing of natural gas and electricity, the generation of electricity (primarily fueled by natural gas), and the distribution of propane.

AES Corporation (United States; Electric; 3.5% of net assets): AES and its subsidiaries make up a global power company. AES's electricity generation business consists of sales to wholesale customers (electric utilities, regional electric companies or wholesale commodity markets) for further resale to end users. AES also sells electricity directly to end users through its distribution business.

Dynegy Inc. Class A (United States; Electric; 3.2% of net assets): Dynegy provides energy products and services in North America and the United Kingdom. The company markets natural gas, electricity, coal, natural gas liquids, crude oil, liquid petroleum gas, and related services.

Calpine Corporation (United States; Electric; 2.9% of net assets): Calpine acquires, develops, owns, and operates power generation facilities, as well as sells electricity in the United States. The company also provides thermal energy for industrial customers.

What were the fund's top ten holdings as of May 31, 2000?

The top ten holdings were as follows:

Security name	Country	Percentage of Net assets	Industry
Enron Corporation	United States	4.9%	Utilities
Columbia Energy Corp.	United States	4.1%	Utilities
Peco Energy Co.	United States	3.7%	Electric Utilities: East
KeySpan Corp.	United States	3.5%	Utilities
AES Corporation	United States	3.5%	Utilities
GTE Corp.	United States	3.4%	Major U.S. Telecommunications
Dynegy, Inc., Class A	United States	3.2%	Utilities
CMS Energy Corp.	United States	3.1%	Electric Utilities: Central
Calpine Corporation	United States	2.9%	Utilities
Williams Companies, Inc. (The)	United States	2.8%	Utilities
TOTAL		35.1%

What is your current strategy for the fund's region and country weightings?

We have and continue to feel that we should continue to overweight the United States in our portfolio. This is basically due to the following:

1) Domestic utilities--whether they are in the energy, electric or the telecommunications area--are by far the most numerous and cheapest utilities available worldwide. This is an especially prudent strategy in a uncertain market environment.

2) Worldwide money flows continue to come into the domestic equity markets.

3) Due to the strength of the U.S. dollar and the number of utility companies available, acquisition targets are becoming more home grown.

As of May 31, 2000, the fund's regional and country weightings were as follows:

Region		Percentage of Net Assets
United States		95.3%
Europe		5.1%
Japan		0.6%
Asia (ex-Japan)		0.5%

Country		Percentage of Net Assets
United States		95.3%
Spain		1.3%
United Kingdom		1.0%
Germany		0.8%
Portugal		0.7%
Finland		0.7%
Japan		0.6%
Sweden		0.6%
New Zealand		0.5%

As we reach the mid-point of 2000, what are your comments on telecommunications and Internet-related stocks, which have taken center stage in the utility industry?

Although there continues to be a significant amount of action in both of the main utility sectors, the Internet and advanced technologies are the driving force behind them. Just as people want more and faster telecommunications services, they also want greater electricity reliability. In either case, price is not necessarily the initial driving factor. Normally, it starts out as either a convenience factor (faster, more adaptable Internet connections), or mobile portability, or a loss of forced outages of any length. Ultimately, price becomes a factor, as differing technologies drive down the cost to the point where only the strong survive.

We are keeping track of the technologies as they develop and grow. Because of this, turnover may increase as utilities today are not like the utilities of old, where yield and P/E ratios were the driving forces to a firm's performance. Today, having the right technology, the most reliability, the best patent, or license base may be more important to investors. Thus, our barbell approach of utilizing both old technology companies with new wrinkle, as well as new technology companies with cash availability, seems like the best strategy.

Two Ways You May Seek to Invest for Success:

INITIAL INVESTMENT

If you had made an initial investment of $7,000 in the Class A Shares of Federated World Utility Fund on 4/22/94, reinvested dividends and capital gains, and did not redeem any shares, your account would have been worth $17,246¹ on 5/31/00. You would have earned a 15.90% average annual total return for the investment life span.

One key to investing wisely is to reinvest all distributions in fund shares. This increases the number of shares on which you can earn future dividends and you gain the benefit of compounding.

As of 6/30/00, the Class A Shares' 1-year, 5-year and since inception (4/22/94) average annual total returns were 5.20%, 18.04% and 15.47%, respectively. Class B Shares' 1-year and since inception (7/27/95) average annual total returns were 5.27% and 18.08%, respectively. Class C Shares' 1-year and since inception (7/27/95) average annual total returns were 9.58% and 18.26%, respectively.²

[Graphic Representation Omitted - See Appendix]

1 Total return represents the change in the value of an investment after reinvesting all income and capital gains, and takes into account the 5.50% sales charge applicable to an initial investment in Class A Shares. Data quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost.

2 The total returns stated take into account all applicable sales charges. The maximum sales charges and contingent deferred sales charges for the fund are as follows: Class A Shares, 5.50% sales charge; Class B Shares, 5.50% contingent deferred sales charge; Class C Shares, 1.00% contingent deferred sales charge.

ONE STEP AT A TIME

$1,000 initial investment and subsequent investments of $1,000 each year for six years (reinvesting all dividends and capital gains) grew to $11,857.

With this approach, the key is consistency.

If you had started investing $1,000 annually in the Class A Shares of Federated World Utility Fund on 4/22/94, reinvested your dividends and capital gains, and did not redeem any shares, you would have invested only $7,000, but your account would have reached a total value of $11,857¹ by 5/31/00. You would have earned an average annual total return of 16.78%.

A practical investment plan helps you pursue income through a diversified portfolio primarily invested in domestic and international utility securities. Through systematic investing, you buy shares on a regular basis and reinvest all earnings. An investment plan can work for you when you invest only $1,000 annually. You can take it one step at a time. Put time, money, and compounding to work.

[Graphic Representation Omitted - See Appendix]

1 This chart assumes that the subsequent annual investments are made on the last day of each anniversary month. No method of investing can guarantee a profit or protect against loss in down markets.

Hypothetical Investor Profile--Investing for Growth

Carol and Vince Snow--a dual-income suburban couple--are building a nest egg for their son Nick's college education.

Carol and Vince invested $10,000 in the Class A Shares of Federated World Utility Fund on April 22, 1994. At the end of each April thereafter, Carol and Vince have added $2,000 to their investment. By May 31, 2000, their account had grown to $43,459, giving them an annual total return of 16.29%.

Now the Snows can feel confident that they can afford a quality education for Nick--whether or not he gets the soccer scholarship that he is hoping for.

The couple is fictional, but the figures are real.

[Graphic Representation Omitted - See Appendix]

This hypothetical scenario is provided for illustrative purposes only and does not represent the results obtained by any particular shareholder. Past performance does not guarantee future results.

Portfolio of Investments

MAY 31, 2000 (UNAUDITED)

Shares

Value

COMMON STOCKS--94.4%

Broadcasting & Publishing--0.7%

10,600

General Motors Corp., Class H

1,043,437

Capital Goods--0.5%

481,000

Waste Management NZ Ltd.

759,447

Cellular Telephone--0.6%

18,700

Western Wireless Corp., Class A

894,094

Commercial Services--0.7%

19,387

Dycom Industries, Inc.

939,058

Electric Utilities: Central--4.1%

193,000

CMS Energy Corp.

4,390,750

73,000

Utilicorp United, Inc.

1,432,625

TOTAL

5,823,375

Electric Utilities: East--6.7%

40,000

Constellation Energy Group

1,372,500

40,000

DQE, Inc.

1,690,000

56,000

Energy East Corp.

1,197,000

120,000

Peco Energy Co.

5,272,500

TOTAL

9,532,000

Electric Utilities: South--12.4%

60,000

Duke Energy Corp.

3,495,000

68,000

El Paso Energy Corp.

3,502,000

108,000

Entergy Corp.

3,132,000

63,000

FPL Group, Inc.

3,118,500

100,000

OGE Energy Corp.

1,950,000

83,000

Reliant Energy, Inc.

2,365,500

TOTAL

17,563,000

Electric Utilities: West--1.0%

37,500

Montana Power Co.

1,417,969

Shares

Value

COMMON STOCKS--continued

Energy--5.0%

101,100

Atmos Energy Corp.

1,851,394

47,000

Coastal Corp.

2,884,625

55,000

MCN Energy Group, Inc.

1,254,687

34,000

Peoples Energy Corp.

1,153,875

TOTAL

7,144,581

Major U.S. Telecommunications-7.6%

34,000

AT&T Corp.

1,179,375

76,500

GTE Corp.

4,838,625

87,000

MCI Worldcom, Inc.

3,273,375

26,000

Sprint Corp.

1,573,000

TOTAL

10,864,375

Non-U.S. Utilities--0.6%

40,000

Union Elec Fenosa

834,057

Technology--1.5%

9,000

Harmonic Lightwaves, Inc.

402,187

31,000

Lucent Technologies, Inc.

1,778,625

TOTAL

2,180,812

Technology Hardware & Equipment--2.2%

6,300

Corning, Inc.

1,218,656

Nortel Networks Corp.

12,900

Plantronics, Inc.

1,101,338

40,000

Telefonaktiebolaget LM Ericsson, Class B, ADR

820,000

TOTAL

3,140,037

Shares

Value

COMMON STOCKS--continued

Telecommunication Services--19.3%

20,150

Allegiance Telecom, Inc.

1,065,431

22,000

Alltel Corp.

1,439,625

42,100

BroadWing, Inc.

1,002,506

51,400

Cable & Wireless Communications PLC

857,859

23,000

CenturyTel, Inc.

621,000

33,000

Firstcom Corp.

459,937

55,500

Global Crossing Ltd.

1,390,969

17,200

Level 3 Communications, Inc.

1,312,575

4,200

Mannesmann AG

1,097,149

14,500

Mastec, Inc.

991,437

81,100

McLeodUSA, Inc., Class A

1,622,000

45,000

Metromedia Fiber Network, Inc.

1,392,187

18,600

NEXTLINK Communications, Inc.

1,303,162

Nippon Telegraph & Telephone Corp.

891,324

17,800

Nokia Oyj, Class A, ADR

925,600

94,000

Portugal Telecom SA

1,026,058

37,000

Qwest Communications International, Inc.

1,565,563

71,276

SBC Communications, Inc.

3,113,870

48,000

Telefonica SA

985,195

7,500

Telephone and Data System, Inc.

795,000

29,000

U.S. West, Inc.

2,088,000

120,490

Vodafone AirTouch PLC

550,084

31,500

WinStar Communications, Inc.

893,813

TOTAL

27,390,344

Shares

Value

COMMON STOCKS--continued

Utilities--31.5%

57,000

AES Corp.

4,973,250

38,000

Avista Corp.

850,250

38,500

Calpine Corp.

4,078,594

90,000

Columbia Energy Group

5,821,875

25,000

Consolidated Water Co.

182,812

80,000

DTE Energy Co.

2,765,000

43,200

Dominion Resources, Inc.

1,976,400

59,000

Dynegy, Inc.

4,550,375

36,600

Energen Corp.

809,775

95,000

Enron Corp.

6,923,125

165,000

KeySpan Corp.

5,032,500

45,000

NICOR, Inc.

1,650,938

64,000

Vectren Corp.

1,200,000

95,000

Williams Cos., Inc. (The)

3,948,438

TOTAL

44,763,332

TOTAL COMMON STOCKS (IDENTIFIED COST $124,346,860)

134,289,918

MUTUAL FUND--7.1%²

10,054,737

Prime Value Obligations Fund, Class IS

10,054,737

TOTAL INVESTMENTS (IDENTIFIED COST $134,401,597)³

144,344,655

1 Non-income producing security.

3 The cost of investments for federal tax purposes amounts to $134,401,597. The net unrealized appreciation of investments on a federal tax basis amounts to $9,943,058, which is comprised of $14,121,618 appreciation and $4,178,560, depreciation at May 31, 2000.

Note: The categories of investments are shown as a percentage of net assets ($142,247,305) at May 31, 2000.

The following acronym is used throughout this portfolio:

ADR	--American Depositary Receipt

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

MAY 31, 2000 (UNAUDITED)

Assets:

Total investments in securities, at value (identified and tax cost $134,401,597)

144,344,655

Cash denominated in foreign currencies (identified cost $25,390)

25,717

Income receivable

317,165

Receivable for investments sold

2,377,368

Receivable for shares sold

456,160

TOTAL ASSETS

147,521,065

Liabilities:

Payable for investments purchased

5,064,006

Payable for shares redeemed

189,571

Accrued expenses

20,183

TOTAL LIABILITIES

5,273,760

Net assets for 8,298,974 shares outstanding

142,247,305

Net Assets Consist of:

Paid in capital

125,310,449

Net unrealized appreciation of investments and translation of assets and liabilities in foreign currency

9,945,322

Accumulated net realized gain on investments and foreign currency transactions

7,423,328

Net operating loss

(431,794

)

TOTAL NET ASSETS

142,247,305

Net Asset Value, Offering Price and Redemption Proceeds Per Share

Class A Shares:

Net Asset Value Per Share ($77,957,052 ÷ 4,523,583 shares outstanding)

$17.23

Offering Price Per Share (100/94.50 of $17.23)¹

$18.23

Redemption Proceeds Per Share

$17.23

Class B Shares:

Net Asset Value Per Share ($54,033,522 ÷ 3,173,540 shares outstanding)

$17.03

Offering Price Per Share

$17.03

Redemption Proceeds Per Share (94.50/100 of $17.03)¹

$16.09

Class C Shares:

Net Asset Value Per Share ($10,256,731 ÷ 601,851 shares outstanding)

$17.04

Offering Price Per Share

$17.04

Redemption Proceeds Per Share (99.00/100 of $17.04)¹

$16.87

1 See "What Do Shares Cost?" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

SIX MONTHS ENDED MAY 31, 2000 (UNAUDITED)

Investment Income:

Dividends (net of foreign taxes withheld of $16,234)

954,766

Interest

172,714

TOTAL INCOME

1,127,480

Expenses:

Investment adviser fee

710,808

Administrative personnel and services fee

92,501

Custodian fees

18,894

Transfer and dividend disbursing agent fees and expenses

60,440

Directors'/Trustees' fees

976

Auditing fees

8,443

Legal fees

4,947

Portfolio accounting fees

40,237

Distribution services fee--Class A Shares

98,849

Distribution services fee--Class B Shares

200,349

Distribution services fee--Class C Shares

36,209

Shareholder services fee--Class A Shares

98,849

Shareholder services fee--Class B Shares

66,783

Shareholder services fee--Class C Shares

12,070

Share registration costs

26,136

Printing and postage

28,604

Insurance premiums

719

Taxes

5,432

Miscellaneous

7,910

TOTAL EXPENSES

1,519,156

Waivers and Reimbursements:

Waiver of distribution services fee--Class A Shares

(98,849

)

Reimbursement of investment advisory fee

(18

)

TOTAL WAIVERS AND REIMBURSEMENTS

(98,867

)

Net expenses

1,420,289

Net operating loss

(292,809

)

Realized and Unrealized Gain (Loss) on Investments and Foreign Currency:

Net realized gain on investments and foreign currency transactions

7,642,038

Net change in unrealized appreciation (depreciation) of investments and translation of assets and liabilities in foreign currency

(9,646,978

)

Net realized and unrealized loss on investments and foreign currency

(2,004,940

)

Change in net assets resulting from operations

(2,297,749

)

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

Six Months
Ended
(unaudited)
May 31,
2000

Year Ended
November 30,
1999

Increase (Decrease) in Net Assets

Operations:

Net operating loss

(292,809

)

(94,634

)

Net realized gain on investments and foreign currency transactions ($7,642,038 and $16,270,614, respectively, as computed for federal tax purposes)

7,642,038

15,963,051

Net change in unrealized appreciation of investments and translation of assets and liabilities in foreign currency

(9,646,978

)

8,167,969

CHANGE IN NET ASSETS RESULTING FROM OPERATIONS

(2,297,749

)

24,036,386

Distributions to Shareholders:

Distributions from net investment income

Class A Shares

(86,379

)

Class B Shares

Class C Shares

Class F Shares

(17,931

)¹

Distributions from net realized gain on investments and foreign currency transactions

Class A Shares

(8,931,646

)

(2,235,269

)

Class B Shares

(6,033,088

)

(1,829,263

)

Class C Shares

(965,046

)

(272,174

)

Class F Shares

(930,397

)¹

CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS

(15,929,780

)

(5,371,413

)

Share Transactions:

Proceeds from sale of shares

69,542,682

81,045,813

Net asset value of shares issued to shareholders in payment of distributions declared

14,138,734

4,734,104

Cost of shares redeemed

(39,067,979

)

(54,340,186

)

CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS

44,613,437

31,439,731

Change in net assets

26,385,908

50,104,704

Net Assets:

Beginning of period

115,861,397

65,756,693

End of period

142,247,305

115,861,397

1 Reflects changes in net assets for the period from December 1, 1998 to February 28, 1999. On March 1, 1999, Class F Shares were reclassified as Class A Shares.

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class A Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended November 30,

2000

1999

1998

1997

1996

1995

Net Asset Value, Beginning of Period

$19.61

$16.24

$14.16

$12.69

$10.96

$ 9.67

Income From Investment Operations:

Net investment income (net operating loss)

(0.01

)

0.03

0.23

0.28

0.43

0.42

Net realized and unrealized gain on investments and foreign currency transactions

0.30

4.68

2.55

2.00

1.67

1.27

TOTAL FROM INVESTMENT OPERATIONS

0.29

4.71

2.78

2.28

2.10

1.69

Less Distributions:

Distributions from net investment income

(0.04

)

(0.26

)

(0.38

)

(0.37

)

(0.40

)

Distributions from net realized gain on investments and foreign currency transactions

(2.67

)

(1.30

)

(0.44

)

(0.43

)

TOTAL DISTRIBUTIONS

(2.67

)

(1.34

)

(0.70

)

(0.81

)

(0.37

)

(0.40

)

Net Asset Value, End of Period

$17.23

$19.61

$16.24

$14.16

$12.69

$10.96

Total Return¹

1.17

31.41

20.42

19.08

19.54

17.94

Ratios to Average Net Assets:

Expenses

1.67

%²

1.61

1.52

1.40

1.05

0.25

Net investment income (net operating loss)

(0.08

%)²

0.21

1.71

2.16

3.87

4.39

Expense waiver/reimbursement³

0.25

%²

0.37

0.81

1.49

3.11

4.78

Supplemental Data:

Net assets, end of period (000 omitted)

$77,957

$65,071

$28,022

$20,394

$12,671

$8,875

Portfolio turnover

117

169

139

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

2 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class B Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended November 30,

2000

1999

1998

1997

1996

1995

Net Asset Value, Beginning of Period

$19.47

$16.19

$14.12

$12.68

$10.95

$10.53

Income From Investment Operations:

Net investment income (net operating loss)

(0.04

)

(0.07

)

0.12

0.21

0.35

0.11

Net realized and unrealized gain on Investments and foreign currency transactions

0.27

4.65

2.54

1.95

1.67

0.41

TOTAL FROM INVESTMENT OPERATIONS

0.23

4.58

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

(2.67

)

(1.30

)

(0.44

)

(0.43

)

TOTAL DISTRIBUTIONS

(2.67

)

(1.30

)

(0.59

)

(0.72

)

(0.29

)

(0.10

)

Net Asset Value, End of Period

$17.03

$19.47

$16.19

$14.12

$12.68

$10.95

Total Return²

0.83

30.57

19.53

18.04

18.79

5.00

Ratios to Average Net Assets:

Expenses

2.42

%³

2.36

2.27

2.15

1.80

1.00

%³

Net investment income (net operating loss)

(0.82

%)³

(0.54

0.96

1.36

3.18

2.99

%³

Expense waiver/reimbursement⁴

0.37

0.81

1.49

3.11

4.78

%³

Supplemental Data:

Net assets, end of period (000 omitted)

$54,034

$43,969

$22,793

$15,177

$4,091

$1,068

Portfolio turnover

117

169

139

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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Financial Highlights--Class C Shares

(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

Six Months
Ended
(unaudited)
May 31,

Year Ended November 30,

2000

1999

1998

1997

1996

1995

Net Asset Value, Beginning of Period

$19.48

$16.21

$14.14

$12.67

$10.95

$10.53

Income From Investment Operations:

Net investment income (net operating loss)

(0.03

)

(0.06

)

0.12

0.19

0.33

0.15

Net realized and unrealized gain on investment and foreign currency transactions

0.26

4.63

2.54

2.00

1.68

0.37

TOTAL FROM INVESTMENT OPERATIONS

0.23

4.57

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

(2.67

)

(1.30

)

(0.44

)

(0.43

)

TOTAL DISTRIBUTIONS

(2.67

)

(1.30

)

(0.59

)

(0.72

)

(0.29

)

(0.10

)

Net Asset Value, End of Period

$17.04

$19.48

$16.21

$14.14

$12.67

$10.95

Total Return²

0.83

30.46

19.50

18.24

18.61

4.92

Ratios to Average Net Assets:

Expenses

2.42

%³

2.36

2.27

2.15

1.80

1.00

%³

Net investment income (net operating loss)

(0.82

%)³

(0.54

0.96

1.39

3.17

3.03

%³

Expense waiver/reimbursement⁴

0.37

0.81

1.49

3.11

4.77

%³

Supplemental Data:

Net assets, end of period (000 omitted)

$10,257

$6,821

$3,276

$1,923

$1,072

$374

Portfolio turnover

117

169

139

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 Computed on an annualized basis.

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

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

MAY 31, 2000 (UNAUDITED)

ORGANIZATION

Federated World Investment Series, Inc. (the "Corporation") is registered under the Investment Company Act of 1940, as amended (the "Act") as an open-end, management investment company. The Corporation consists of nine portfolios. The financial statements included herein are only those of Federated World Utility Fund (the "Fund"), a diversified portfolio. The financial statements of the other portfolios are presented separately. The assets of each portfolio are segregated and a shareholder's interest is limited to the portfolio in which shares are held.

The Fund offers three classes of shares: Class A Shares, Class B Shares and Class C Shares. The Fund's investment objective is to provide total return.

SIGNIFICANT ACCOUNTING POLICIES

Investment Valuations

Market values of the Fund's foreign and domestic equity securities are determined according to the last reported sale price on a recognized securities exchange, if available. If unavailable, or if the securities trade over-the-counter, the securities are generally valued according to the mean between the last closing bid and asked prices. Short-term foreign and domestic securities are valued at the prices provided by an independent pricing service. However, short-term foreign and domestic securities with remaining maturities of 60 days or less at the time of purchase may be valued at amortized cost, which approximates fair market value. Investments in other open-end regulated investment companies are valued at net asset value.

Investment Income, Expenses and Distributions

Federal Taxes

Withholding taxes on foreign interest and dividends have been provided for in accordance with the applicable country's tax rules and rates.

When-Issued and Delayed Delivery Transactions

Foreign Exchange Contracts

The Fund may enter into foreign currency commitments for the delayed delivery of securities or foreign currency exchange transactions. The Fund may enter into foreign currency contract transactions to protect assets against adverse changes in foreign currency exchange rates or exchange control regulations. Purchased contracts are used to acquire exposure to foreign currencies; whereas, contracts to sell are used to hedge the securities against currency valuations. Risks may arise upon entering these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency transactions are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date. At May 31, 2000, the Fund had no outstanding foreign currency commitments.

Foreign Currency Translation

Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of FCs, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund's books, and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities at fiscal year end, resulting from changes in the exchange rate.

Use of Estimates

Other

Investment transactions are accounted for on a trade date basis.

CAPITAL STOCK

At May 31, 2000, par value shares ($0.001 per share) authorized were as follows:

Class Name		Number of Par Value Capital Stock Authorized
Class A		200,000,000
Class B		100,000,000
Class C		100,000,000
TOTAL		400,000,000

Transactions in capital stock were as follows:

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class A Shares:

Shares

Amount

Shares

Amount

Shares sold

2,453,857

47,388,728

2,252,972

53,363,120

Shares issued to shareholders in payment of distributions declared

450,164

7,945,400

138,771

2,105,391

Shares redeemed

(1,698,437

)

(32,661,504

)

(799,200

)

(33,311,972

)

NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS

1,205,584

22,672,624

1,592,543

22,156,539

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class B Shares:

Shares

Amount

Shares

Amount

Shares sold

879,011

16,864,741

1,119,611

19,106,919

Shares issued to shareholders in payment of distributions declared

304,021

5,317,330

108,531

1,642,078

Shares redeemed

(268,187

)

(5,188,817

)

(376,905

)

(6,504,935

)

NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS

914,845

16,993,254

851,237

14,244,062

Six Months Ended
May 31, 2000

Year Ended
November 30, 1999

Class C Shares:

Shares

Amount

Shares

Amount

Shares sold

268,142

5,289,213

198,302

3,440,959

Shares issued to shareholders in payment of distributions declared

50,029

876,004

16,370

248,016

Shares redeemed

(66,411

)

(1,217,658

)

(66,625

)

(1,168,143

)

NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS

251,760

4,947,559

148,047

2,520,832

Six Months Ended
May 31, 2000

Period Ended
February 28, 1999¹

Class F Shares:

Shares

Amount

Shares

Amount

Shares sold

55,364

5,134,815

Shares issued to shareholders in payment of distributions declared

48,754

738,619

Shares redeemed

(822,654

)

(13,355,136

)

NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS

(718,536

)

(7,481,702

)

NET CHANGE RESULTING FROM SHARE TRANSACTIONS

2,372,189

44,613,437

1,873,291

31,439,731

1 On March 1, 1999, Class F Shares were reclassified as Class A Shares.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Administrative Fee

Distribution Services Fee

The Fund has adopted a Distribution Plan (the "Plan") pursuant to Rule 12b-1 under the Act. Under the terms of the Plan, the Fund will compensate Federated Securities Corp., ("FSC"), the principal distributor, from the net assets of the Fund to finance activities intended to result in the sale of the Corporation's Class B Shares and Class C Shares. The Plan provides that the Fund may incur distribution expenses according to the following schedule annually, to compensate FSC.

Share Class Name

Percentage of Average
Daily Net Assets of Class

Class B Shares

0.75%

Class C Shares

0.75%

The distributor may voluntarily choose to waive any portion of its fee. The distributor can modify or terminate this voluntary waiver at any time at its sole discretion.

Shareholder Services Fee

Transfer and Dividend Disbursing Agent Fees and Expenses

Portfolio Accounting Fees

FServ maintains the Fund's accounting records for which it receives a fee. The fee is based on the level of the Fund's average daily net assets for the period, plus out-of-pocket expenses.

General

Certain of the Officers and Directors of the Corporation are Officers and Directors or Trustees of the above companies.

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding short-term securities (and in-kind contributions), for the six months ended May 31, 2000, were as follows:

Purchases	$	179,311,605

Sales	$	158,817,670

CONCENTRATION OF CREDIT RISK

LINE OF CREDIT AGREEMENT

Directors

JOHN F. DONAHUE

THOMAS G. BIGLEY

JOHN T. CONROY, JR.

NICHOLAS P. CONSTANTAKIS

JOHN F. CUNNINGHAM

J. CHRISTOPHER DONAHUE

LAWRENCE D. ELLIS, M.D.

PETER E. MADDEN

CHARLES F. MANSFIELD, JR.

JOHN E. MURRAY, JR., J.D., S.J.D.

MARJORIE P. SMUTS

JOHN S. WALSH

Officers

JOHN F. DONAHUE

Chairman

RICHARD B. FISHER

President

HENRY A. FRANTZEN

Chief Investment Officer

J. CHRISTOPHER DONAHUE

Executive Vice President

EDWARD C. GONZALES

Executive Vice President

JOHN W. MCGONIGLE

Executive Vice President and Secretary

RICHARD J. THOMAS

Treasurer

G. ANDREW BONNEWELL

Assistant Secretary

Federated
World-Class Investment Manager

SEMI-ANNUAL REPORT

AS OF MAY 31, 2000

Federated World Utility Fund

Established 1994

7TH SEMI-ANNUAL REPORT

Federated
Federated World Utility Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
1-800-341-7400
www.federatedinvestors.com
Federated Securities Corp., Distributor

Cusip 31428U672
Cusip 31428U664
Cusip 31428U656

G00259-05 (7/00)


                                    APPENDIX

FEDERATED EUROPEAN GROWTH FUND SEMI-ANNUAL REPORT

PAGE 8. The graphic presentation here displayed consists of a boxed legend in
the upper left quadrant indicating the components of the corresponding mountain
chart. The color coded mountain chart is a visual representation of the
narrative text above it. The "x" axis reflects computation periods from 2/28/96
to 5/31/00. The "y" axis is measured in increments of $2,000 ranging from $0 to
$12,000 and indicates that the ending value of a hypothetical initial investment
of $5,000 in Federated European Growth Fund's Class A Shares, assuming the
reinvestment of capital gains and dividends, would have grown to $9,831 on May
31, 2000.

PAGE 9. The graphic presentation here displayed consists of a boxed legend in
the upper left quadrant indicating the components of the corresponding mountain
chart. The color coded mountain chart is a visual representation of the
narrative text above it. The "x" axis reflects computation periods from 2/28/96
to 5/31/00. The "y" axis is measured in increments of $1,000 ranging from $0 to
$8,000 and indicates that the ending value of a hypothetical initial investment
of $1,000 and three subsequent investments of $1,000 in Federated European
Growth Fund's Class A Shares, assuming the reinvestment of capital gains and
dividends, would have grown to $6,735 on May 31, 2000.

FEDERATED INTERNATIONAL SMALL COMPANY FUND SEMI-ANNUAL REPORT

PAGE 8. The graphic presentation here displayed consists of a boxed legend in
the upper left quadrant indicating the components of the corresponding mountain
chart. The color coded mountain chart is a visual representation of the
narrative text above it. The "x" axis reflects computation periods from 2/28/96
to 5/31/00. The "y" axis is measured in increments of $5,000 ranging from $0 to
$25,000 and indicates that the ending value of a hypothetical initial investment
of $5,000 in Federated International Small Company Fund's Class A Shares,
assuming the reinvestment of capital gains and dividends, would have grown to
$16,634 on May 31, 2000.

PAGE 9. The graphic presentation here displayed consists of a boxed legend in
the upper left quadrant indicating the components of the corresponding mountain
chart. The color coded mountain chart is a visual representation of the
narrative text above it. The "x" axis reflects computation periods from 2/28/96
to 5/31/00. The "y" axis is measured in increments of $1,000 ranging from $0 to
$15,000 and indicates that the ending value of a hypothetical initial investment
of $1,000 and three subsequent investments of $1,000 in Federated International
Small Company Fund's Class A Shares, assuming the reinvestment of capital gains
and dividends, would have grown to $10,129 on May 31, 2000.

FEDERATED WORLD UTILITY FUND SEMI-ANNUAL REPORT

PAGE 8. The graphic presentation here displayed consists of a boxed legend in
the upper left quadrant indicating the components of the corresponding mountain
chart. The color coded mountain chart is a visual representation of the
narrative text above it. The "x" axis reflects computation periods from 4/22/94
to 5/31/00. The "y" axis is measured in increments of $5,000 ranging from $0 to
$20,000 and indicates that the ending value of a hypothetical initial investment
of $7,000 in Federated World Utility Fund's Class A Shares, assuming the
reinvestment of capital gains and dividends, would have grown to $17,146 on May
31, 2000.

PAGE 8. The graphic presentation here displayed consists of a boxed legend in
the upper left quadrant indicating the components of the corresponding mountain
chart. The color coded mountain chart is a visual representation of the
narrative text above it. The "x" axis reflects computation periods from 4/22/94
to 5/31/00. The "y" axis is measured in increments of $3,000 ranging from $0 to
$15,000 and indicates that the ending value of a hypothetical initial investment
of $1,000 and six subsequent investments of $1,000 in Federated World Utility
Fund's Class A Shares, assuming the reinvestment of capital gains and dividends,
would have grown to $11,857 on May 31, 2000.

PAGE 9. The graphic presentation here displayed consists of a boxed legend in
the upper left quadrant indicating the components of the corresponding mountain
chart. The color coded mountain chart is a visual representation of the
narrative text above it. The "x" axis reflects computation periods from 4/22/94
to 5/31/00. The "y" axis is measured in increments of $10,000 ranging from $0 to
$50,000 and indicates that the ending value of a hypothetical initial investment
of $10,000 on 4/22/94 and six subsequent investments of $2,000 in Federated
World Utility Fund's Class A Shares, assuming the reinvestment of capital gains
and dividends, would have grown to $43,459 on May 31, 2000.