FEDERATED COMPLEX OF FUNDS

Supplement dated November 3, 2003 to Current Prospectuses

This supplement adds the following new section to the prospectuses for all funds
listed  below  (including  all  portfolios  and classes of shares  thereof;  the
"Funds").

Legal  Proceedings.  Like many other mutual fund  companies,  in September 2003,
Federated  Investors,  Inc.,  the  parent  company of the  Funds'  advisers  and
distributor   (collectively,   "Federated"),   received  detailed  requests  for
information on shareholder  trading  activities in the Funds from the Securities
and Exchange  Commission,  the New York State Attorney General, and the National
Association of Securities Dealers.  Federated  immediately retained the law firm
of Reed  Smith LLP to  conduct  an  internal  investigation,  which is  ongoing.
Additionally,  attorneys from the law firm of Dickstein Shapiro Morin & Oshinsky
LLP,  independent  counsel to the Funds, are  participating in the investigation
and are reporting to the independent directors of the Funds on their progress.

The internal  investigation is examining,  among other things,  circumstances in
which  it  appears  that  a  few  Fund  investors  were  granted  exceptions  to
Federated's  internal  procedures for limiting frequent  transactions,  and that
some of these  investors made additional  investments in other Federated  funds.
The  investigation  is also examining  instances in which it appears that orders
for Federated  variable net asset value funds were placed and accepted after the
funds'  closing time at 4:00 p.m.  Federated is taking steps to ensure that fund
shareholder trading policies are adhered to.

On October 22,  2003,  Federated  issued a press  release that  discusses  these
matters and announces  that  Federated is committed to taking  remedial  actions
when and as appropriate,  including  compensating  the Funds for any detrimental
impact these  transactions  may have had on them. Based upon the progress of the
investigation to date, Federated does not have sufficient  information regarding
these transactions to make a reasonable estimate of the amount, if any, by which
the Funds have been  impacted.  The press release is available in the "About Us"
section of Federated's website www.federatedinvestors.com,  and any future press
releases on this  subject  will also be posted  there.  Shortly  after the press
release  was  issued,  and  notwithstanding  Federated's  commitment  to  taking
remedial  actions,  Federated  and  various  Funds were named as  defendants  in
several class action  lawsuits filed in the United States District Court for the
Western  District of Pennsylvania  seeking damages of unspecified  amounts.  The
lawsuits were purportedly filed on behalf of people who purchased,  owned and/or
redeemed shares of  Federated-sponsored  mutual funds during  specified  periods
beginning  November 1, 1998.  The suits are  generally  similar in alleging that
Federated  engaged in illegal and improper  trading  practices  including market
timing and late  trading in concert with certain  institutional  traders,  which
allegedly caused financial injury to the mutual fund shareholders. Federated and
the  Funds  are  reviewing  the  allegations  and  will  respond  appropriately.
Additional  lawsuits based upon similar  allegations may be filed in the future.
Although  we do not believe  that these  lawsuits  will have a material  adverse
effect on the Funds,  there can be no assurance  that these  suits,  the ongoing
adverse  publicity  and/or  other  developments  resulting  from the  regulatory
investigations  will not result in increased Fund redemptions,  reduced sales of
Fund shares, or other adverse consequences for the Funds.

The Federated  Complex Of Funds  consists of the following  registrants  and all
portfolios and classes thereof:

Cash Trust Series, Inc.
Cash Trust Series II
Federated Adjustable Rate Securities Fund
Federated American Leaders Fund, Inc.
Federated Equity Funds
Federated Equity Income Fund, Inc.
Federated Fixed Income Securities, Inc.
Federated GNMA Trust
Federated Government Income Securities, Inc.
Federated High Income Bond Fund, Inc.
Federated High Yield Trust
Federated Income Securities Trust
Federated Income Trust
Federated Index Trust
Federated Institutional Trust
Federated Insurance Series
Federated International Series, Inc.
Federated Investment Series Funds, Inc.
Federated Limited Duration Government Fund, Inc.
Federated Managed Allocation Portfolios
Federated Municipal Opportunities Fund, Inc.
Federated Municipal Securities Fund, Inc.
Federated Municipal Securities Income Trust
Federated Short-Term Municipal Trust
Federated Stock and Bond Fund, Inc.
Federated Stock Trust
Federated Total Return Government Bond Fund
Federated Total Return Series, Inc.
Federated U.S. Government Bond Fund
Federated U.S. Government Securities Fund:  1-3 Years
Federated U.S. Government Securities Fund:  2-5 Years
Federated World Investment Series, Inc.
Intermediate Municipal Trust
Money Market Obligations Trust