Federated American Leaders Fund, Inc.
Federated Equity Income Fund, Inc.

Federated Limited Term Municipal Fund
Federated Municipal Ultrashort Fund
Federated Strategic Income Fund
(Portfolios of Federated Fixed Income Securities, Inc.)

Federated Government Income Securities, Inc.
Federated High Income Bond Fund, Inc.

Federated Capital Income Fund
Federated Short-Term Income Fund
Federated Fund for U.S. Government Securities
(Portfolios of Federated Income Securities Trust)

Federated Government Ultrashort Duration Fund
(A portfolio of Federated Institutional Trust)

Federated International Bond Fund
Federated International Equity Fund
(A portfolio of Federated International Series, Inc.)

Federated Bond Fund
(A portfolio of Federated Investment Series Funds, Inc.)

Federated Municipal High Yield Advantage Fund, Inc.
Federated Municipal Securities Fund, Inc.

Federated Michigan Intermediate Municipal Trust
(Effective January 1, 2005 Shares of the fund will be
   reclassified as Class A Shares)
Federated California Municipal Income Fund
Federated New York Municipal Income Fund
Federated North Carolina Municipal Income Fund
Federated Ohio Municipal Income Fund
Federated Pennsylvania Municipal Income Fund
Federated Vermont Municipal Income Fund
(Portfolios of Federated Municipal Securities Income Trust)

Federated Stock and Bond Fund, Inc.

Federated Total Return Bond Fund
Federated Ultrashort Bond Fund
(Portfolios of Federated Total Return Series, Inc.)

Federated Global Equity Fund
Federated International Capital Appreciation Fund
Federated International High Income Fund
Federated International Small Company Fund
Federated International Value Fund
(Portfolios of Federated World Investment Series, Inc.)

Class A Shares and Class F Shares
- ------------------------------------------------------------------------------
Supplement to current prospectuses.

The following information is effective March 1, 2005.

Under the  subsection  entitled  "SALES CHARGE WHEN YOU  PURCHASE",  immediately
following the sales charge charts,  please delete the narrative  disclosure that
discusses the reduction and/or elimination of the sales charge up through to the
subsection  entitled  "SALES  CHARGE  WHEN  YOU  REDEEM"  and  replace  with the
following:


REDUCING THE SALES CHARGE WITH BREAKPOINT DISCOUNTS

Your  investment  may qualify for a reduction  and/or  elimination  of the sales
charge, also known as a breakpoint discount. The breakpoint discounts offered by
the Fund are indicated in the tables above. You or your investment  professional
must  notify  the  Fund's  Transfer  Agent  of  eligibility  for any  applicable
breakpoint discount at the time of purchase.

In order to receive the applicable  breakpoint discount,  it may be necessary at
the time of  purchase  for you to inform  your  investment  professional  or the
Transfer  Agent of the  existence of other  accounts in which there are holdings
eligible  to be  aggregated  to  meet a  sales  charge  breakpoint  ("Qualifying
Accounts"). Qualifying Accounts mean those Share accounts in the Federated funds
held   directly  or  through  an   investment   professional   or  a  through  a
single-participant  retirement account by you, your spouse, your parents (if you
are under age 21) and/or your  children  under age 21, which can be linked using
tax  identification  numbers (TINs),  social  security  numbers (SSNs) or broker
identification  numbers  (BINs).  Accounts held through 401(k) plans and similar
multi-participant  retirement  plans,  or through  "Section 529" college savings
plans or those accounts which cannot be linked using TINs, SSNs or BINs, are not
Qualifying Accounts.

In order to verify  your  eligibility  for a  breakpoint  discount,  you will be
required  to provide  to your  investment  professional  or the  Transfer  Agent
certain  information  on your New  Account  Form and may be  required to provide
account statements  regarding  Qualifying  Accounts.  If you purchase through an
investment professional,  you may be asked to provide additional information and
records as required by the  investment  professional.  Failure to provide proper
notification or verification of eligibility for a breakpoint discount may result
in your not receiving a breakpoint discount to which you are otherwise entitled.
Breakpoint  discounts  apply  only to your  current  purchase  and do not  apply
retroactively to previous purchases.  The sales charges applicable to the Shares
offered in this prospectus, and the breakpoint discounts offered with respect to
such Shares, are described in full in this prospectus. Because the prospectus is
available on  Federated's  website free of charge,  Federated  does not disclose
this information separately on the website.

Contingent upon notification to the Transfer Agent, the sales charge at purchase
of Class A Shares and/or Class F Shares, may be reduced or eliminated by:


Larger Purchases

     purchasing  Class A or Class F Shares in greater  quantities  to reduce the
     applicable sales charge;


Concurrent and Accumulated Purchases

     combining  concurrent  purchases of and/or current  investments in Class A,
     Class B, Class C, Class F and Class K Shares of any Federated  fund made or
     held by Qualifying  Accounts;  the purchase  amount used in determining the
     sales  charge on your  additional  Share  purchase  will be  calculated  by
     multiplying  the maximum public offering price times the number of Class A,
     Class  B,  Class  C,  Class F and  Class K  Shares  of any  Federated  fund
     currently held in Qualifying  Accounts and adding the dollar amount of your
     current purchase; or


Letter of Intent

     signing a letter of intent to  purchase a  qualifying  amount of Class A or
     Class F Shares  as  applicable  within  13  months  (call  your  investment
     professional or the Fund for more  information).  The Fund's custodian will
     hold Shares in escrow equal to the maximum  applicable sales charge. If you
     complete  the Letter of Intent,  the  Custodian  will release the Shares in
     escrow to your  account.  If you do not fulfill  the Letter of Intent,  the
     Custodian will redeem the appropriate amount from the Shares held in escrow
     to pay the sales charges that were not applied to your purchases.


ELIMINATING THE SALES CHARGE

Contingent upon  notification  to the Transfer  Agent,  the sales charge will be
eliminated when you purchase Shares:

|X|  as a shareholder  who owned Shares on September 30, 1989 (Class F Shares of
     Federated Capital Income Fund only);

|X|  within 120 days of redeeming Shares of an equal or greater amount;

|X|  through a financial  intermediary that did not receive a dealer reallowance
     on the purchase;

|X|  with reinvested dividends or capital gains;

|X|  as a shareholder that originally  became a shareholder of the Fund pursuant
     to the  terms of an  agreement  and plan of  reorganization  which  permits
     shareholders to acquire Shares at NAV;

|X|  as a Federated Life Member  (Federated  shareholders  who  originally  were
     issued shares through the "Liberty  Account,"  which was an account for the
     Liberty  Family of Funds on February 28, 1987,  or who invested  through an
     affinity group prior to August 1, 1987, into the Liberty  Account) (Class A
     Shares only);

|X|  as a Trustee/Director or employee of the Fund, the Adviser, the Distributor
     and their affiliates, an employee of any investment professional that sells
     Shares  according to a sales agreement with the  Distributor,  an immediate
     family member of these  individuals or a trust,  pension or  profit-sharing
     plan for these individuals; or

|X|  pursuant to an exchange privilege (as applicable to each Fund).





                                                                December 8, 2004

   Federated Securities Corp., Distributor
   Cusip 313914103
   Cusip 313914400
   Cusip 313915100
   Cusip 313915407
   Cusip 31417P874
   Cusip 31417P304
   Cusip 31417P403
   Cusip 31417P502
   Cusip 31417P809
   Cusip 313912206
   Cusip 313912107
   Cusip 314195108
   Cusip 31420C878
   Cusip 31420C845
   Cusip 31420C795
   Cusip 31420C704
   Cusip 31420B409
   Cusip 31420G408
   Cusip 31420G101
   Cusip 31420F103
   Cusip 31420F400
   Cusip 313910200
   Cusip 313910101
   Cusip 313913105
   Cusip 313923302
   Cusip 313923104
   Cusip 313923401
   Cusip 313923500
   Cusip 313923609
   Cusip 313923708
   Cusip 313923872
   Cusip 313911109
   Cusip 31428Q788
   Cusip 31428Q820
   Cusip 31428U870
   Cusip 31428U813
   Cusip 31428U771
   Cusip 31428U748
   Cusip 31428U847
   31570 (12/04)