Federated Equity Funds  (ICA No. 811-4017)
               Federated American Leaders Fund, Inc.  (ICA No. 811-1704)
               Federated International Series, Inc. (ICA No. 811-3984)
               Federated Investment Series Funds, Inc.   (ICA No. 811-07021)
               Federated Stock and Bond Fund, Inc.   (ICA No. 811-1)
               Money Market Obligations Trust  (ICA No. 811-5950)


INITIAL SHAREHOLDER LETTER

Date

Dear IAI Mutual Fund Shareholder:

     We are pleased to announce that  Federated  Investors,  Inc. and Investment
Advisers,  Inc. have agreed to a  transaction  merging the IAI Mutual Funds into
Federated  Mutual Funds.  Upon your approval,  Federated will be responsible for
portfolio management and shareholder servicing of the funds.

     With  $125  billion  in  assets  and  45  years  of  investment  management
experience,  Federated  offers the economy of scale we believe is  necessary  to
succeed in today's  increasingly  competitive  financial  marketplace.  Based on
managed assets,  Federated ranks in the top 5% of equity managers and the top 6%
of fixed income  managers.*  It is the 10th  largest  mutual fund company in the
country** and has made a significant  commitment to the  development of superior
portfolio management strategies and world-class shareholder services.

     Federated has considerable experience in smoothly managing transitions such
as this.  Federated has won customer  service awards from DALBAR, a research and
publishing  firm that  monitors  the mutual  fund  business.  In their 1999 Bank
Study, Federated earned high honors for the eighth consecutive year by capturing
#1 rankings in 18 out of 53 categories.

     Following  this  merger,  Investment  Advisers,  Inc.  will  continue as an
institutional   money  manager,   managing  large  accounts  for  corporate  and
non-profit clients.

IMPORTANT POINTS CONCERNING THE MERGER

o     If approved, it will be completed during September 2000.
o     It is designed to be a tax-free event for shareholders.
o     The Federated Funds have substantially similar investment objectives and
      management  styles when compared with the corresponding IAI Funds.

WHAT TO EXPECT

     During the month of July,  you will  receive a proxy  statement  asking for
your  approval of this  merger.  The proxy will  provide you with details of the
proposed  merger  so that  you can  make an  informed  decision.  The  Board  of
Directors of the IAI Mutual Funds has  carefully  considered  this  proposal and
unanimously  recommends  that you vote to approve the  merger.  We would like to
highlight  what  we  believe  are  the  most  important  benefits  to  you  as a
shareholder:

o     COMPETITIVE PERFORMANCE HISTORY

      While past performance is no guarantee of future performance, we are
      impressed with the quality of intensive, bottom-up research and
      fundamental analysis that characterizes Federated's world-class investment
      process. We believe that you can look forward to the continued opportunity
      for competitive performance with Federated's team.

o     COMPETITIVE FUND EXPENSES

      All Federated Funds have expense ratios competitive with industry
      averages.

O     A DIVERSIFIED PRODUCT LINE

      Federated manages and distributes funds that span the full spectrum of
      investment objectives and asset classes, allowing investors to construct
      well-diversified portfolios to suit their individual risk tolerance.

PURCHASE AND EXCHANGE INTO PRODUCTS AT NAV

     IAI  shareholders of record at the time of the acquisition  will be allowed
to  purchase  or  exchange  into any other  Federated  Fund on a NO-LOAD  BASIS,
provided the amount  invested meets the fund's  minimum dollar amount.  You will
not pay a sales charge to become a shareholder of the Federated  funds, nor will
you have to pay any sales  charge in the  future if you wish to make  additional
purchases or exchanges  into other  Federated  funds.  This is of great  benefit
because most of Federated's  funds have a front-end load,  which is being waived
for IAI shareholders.

     YOU  SOON  WILL  BE  RECEIVING   DETAILED  PROXY   INFORMATION   ABOUT  THE
ACQUISITION. WE ENCOURAGE YOU TO READ THE MATERIAL CAREFULLY BECAUSE IT CONTAINS
IMPORTANT INFORMATION. IN ADDITION, YOU CAN OBTAIN A FREE COPY OF THE PROXY FROM
THE SEC BY ACCESSING  THEIR WEB SITE AT WWW.SEC.GOV.  For your own  information,
the attached  supplement includes a list of the IAI and Federated funds affected
by this merger.  In all cases,  except for the money market fund,  reference the
Class A shares of the Federated fund. IAI Investor Services has set up a hotline
to field questions  regarding the merger - you can call  1-800-945-3863 or visit
the IAI Web site at WWW.IAIFUNDS.COM.  You may also call 1-800-245-5777 to speak
directly with an IAI  representative.  For more complete  information  about the
Federated funds,  including charges and expenses,  call for a prospectus,  check
your  local  paper  or  access  their  Web  site at  WWW.FEDERATEDINVESTORS.COM.
Investors should read the prospectus carefully before investing.

     We believe this is a good  opportunity for our  shareholders  and trust you
will too.  Again,  we sincerely  appreciate your business and thank you for your
confidence  in our firm and  products.  It has been a  privilege  to serve  each
shareholder in the IAI mutual funds.

Sincerely,


J. Peter Thompson                         Keith Wirtz
Chairman                                  President
IAI Mutual Funds Board of Directors       IAI Mutual Funds




Federated Securities Corp., distributor of the Federated funds.

*Strategic Insight, 4/28/00
**Investment Company Institute 4/28/00

IAI Investment Funds II, Inc.
File No. 33-61834
IAI Investment Funds IV, Inc.
File No. 2-66885
IAI Investment Funds VI, Inc.
File No. 33-40496
IAI Investment Funds VII, Inc.
File No. 2-39560
IAI Investment Funds VIII, Inc.
File No. 2-84589

SUPPLEMENT DATED JUNE 19, 2000
TO THE JOINT PROSPECTUS DATED AUGUST 1, 1999
OF

IAI CAPITAL APPRECIATION FUND (a portfolio of IAI Investment Funds VI, Inc.) IAI
EMERGING GROWTH FUND (a portfolio of IAI Investment Funds VI, Inc.) IAI GROWTH
FUND (a portfolio of IAI Investment Funds II, Inc.) IAI GROWTH AND INCOME FUND
(a portfolio of IAI Investment Funds VII, Inc.) IAI MIDCAP GROWTH FUND (a
portfolio of IAI Investment Funds VI, Inc.) IAI REGIONAL FUND (a portfolio of
IAI Investment Funds IV, Inc.) IAI LONG TERM GROWTH FUND (formerly known as IAI
Value Fund) (a portfolio of IAI Investment Funds VIII, Inc.)

Proposed Combinations with Federated Funds

On June 12, 2000, the Board of Directors of the Funds named above approved
certain transactions (the "Reorganizations") in which the Funds will be combined
into certain funds (the "Federated Funds") which are advised by subsidiaries of
Federated Investors, Inc. ("Federated") and which have investment objectives and
policies substantially similar to those of the Funds. The Reorganizations were
proposed in conjunction with the sale by Investment Advisers, Inc. ("IAI"), the
investment adviser to the Funds, of its mutual fund advisory business to
Federated. On June 16, 2000 IAI and Federated reached a definitive agreement
covering such a sale.

In the Reorganizations, Fund shareholders will receive, in exchange for their
Fund shares, Class A shares of the corresponding Federated Funds which have an
equivalent net asset value at the closing date. The Federated Funds into which
the respective Funds are proposed to be combined are as follows:

      IAI Capital Appreciation Fund Federated Aggressive Growth Fund IAI
      Emerging Growth Fund Federated Aggressive Growth Fund IAI Growth Fund
      Federated Large Cap Growth Fund IAI Growth and Income Fund Federated
      American Leaders Fund IAI Midcap Growth Fund Federated Growth Strategies
      Fund IAI Regional Fund Federated Capital Appreciation Fund IAI Long Term
      Growth Fund (formerly Federated Aggressive Growth Fund

         known as IAI Value Fund)

The Reorganizations are expected to be tax-free to Fund shareholders. In
addition, Fund shareholders will not bear any of the expenses of the
Reorganizations. After the Reorganizations, Fund shareholders will be permitted
to purchase additional shares of the Federated Funds and of other funds advised
by subsidiaries of Federated without paying any front-end sales loads.

The Reorganizations will take place only if Fund shareholders approve them. The
Funds' Board of Directors has called a special meeting of Fund shareholders to
be held on September 8, 2000, at which shareholders will vote on the
Reorganizations. Proxy materials for the special meeting will be mailed to
shareholders in July. These proxy materials will contain more complete
information concerning the Reorganizations, and you should review them carefully
before casting your vote on the Reorganizations. You do not need to take any
action regarding the Reorganizations before you receive these proxy materials.
If shareholders approve the Reorganizations, the Reorganizations are expected to
be completed shortly thereafter, assuming that other customary closing
conditions are satisfied.

Federated is one of the largest mutual fund companies in the United States,
managing over $125 billion in approximately 175 mutual funds and separate
accounts as of March 31, 2000. Federated, a publicly held company, was founded
in 1955 and is headquartered in Pittsburgh, Pennsylvania.

Change in Name of Former IAI Value Fund

Also on June 12, 2000, the Board of Directors approved changing the name of IAI
Value Fund to IAI Long Term Growth Fund. The Board also approved changes in
certain of this Fund's non-fundamental investment policies. As a result of these
changes, the Principal Investment Strategies and Principal Risks of the IAI Long
Term Growth Fund are the same as those for the IAI Capital Appreciation Fund set
forth at page 3 of the August 1, 1999 Prospectus.

IAI Investment Funds VI, Inc.
File No. 33-40496


SUPPLEMENT DATED JUNE 19, 2000
TO THE PROSPECTUS DATED AUGUST 1, 1999
OF

IAI BALANCED FUND (a portfolio of IAI Investment Funds VI, Inc.)

Proposed Combination with Federated Stock and Bond Fund, Inc.

On June 12, 2000, the Board of Directors of IAI Investment Funds VI, Inc.
approved a transaction (the "Reorganization") in which IAI Balanced Fund (the
"Fund") will be combined into Federated Stock and Bond Fund, Inc. (the
"Federated Fund"), which is advised by a subsidiary of Federated Investors, Inc.
("Federated") and which has investment objectives and policies substantially
similar to those of the Fund. The Reorganization was proposed in conjunction
with the sale by Investment Advisers, Inc. ("IAI"), the investment adviser to
the Fund, of its mutual fund advisory business to Federated. On June 16, 2000
IAI and Federated reached a definitive agreement covering such a sale.

In the Reorganization, Fund shareholders will receive, in exchange for their
Fund shares, Class A shares of the Federated Fund which have an equivalent net
asset value at the closing date. The Reorganization is expected to be tax-free
to Fund shareholders. In addition, Fund shareholders will not bear any of the
expenses of the Reorganization. After the Reorganization, Fund shareholders will
be permitted to purchase additional shares of the Federated Fund and of other
funds advised by subsidiaries of Federated without paying any front-end sales
loads.

The Reorganization will take place only if Fund shareholders approve it. The
Fund's Board of Directors has called a special meeting of Fund shareholders to
be held on September 8, 2000, at which shareholders will vote on the
Reorganization. Proxy materials for the special meeting will be mailed to
shareholders in July. These proxy materials will contain more complete
information concerning the Reorganization, and you should review them carefully
before casting your vote on the Reorganization. You do not need to take any
action regarding the Reorganization before you receive these proxy materials. If
shareholders approve the Reorganization, the Reorganization is expected to be
completed shortly thereafter, assuming that other customary closing conditions
are satisfied.

Federated is one of the largest mutual fund companies in the United States,
managing over $125 billion in approximately 175 mutual funds and separate
accounts as of March 31, 2000. Federated, a publicly held company, was founded
in 1955 and is headquartered in Pittsburgh, Pennsylvania.

IAI Investment Funds I, Inc.
File No. 2-59115

SUPPLEMENT DATED JUNE 19, 2000
TO THE PROSPECTUS DATED APRIL 1, 2000
OF

IAI BOND FUND (a portfolio of IAI Investment Funds I, Inc.)

Proposed Combination with Federated Bond Fund (a portfolio of Federated
Investment Series Funds, Inc.)

On June 12, 2000, the Board of Directors of IAI Investment Funds I, Inc.
approved a transaction (the "Reorganization") in which IAI Bond Fund (the
"Fund") will be combined into Federated Bond Fund (the "Federated Fund"), a
portfolio of Federated Investment Series Funds, Inc. which is advised by a
subsidiary of Federated Investors, Inc. ("Federated") and which has investment
objectives and policies substantially similar to those of the Fund. The
Reorganization was proposed in conjunction with the sale by Investment Advisers,
Inc. ("IAI"), the investment adviser to the Fund, of its mutual fund advisory
business to Federated. On June 16, 2000 IAI and Federated reached a definitive
agreement covering such a sale.

In the Reorganization, Fund shareholders will receive, in exchange for their
Fund shares, Class A shares of the Federated Fund which have an equivalent net
asset value at the closing date. The Reorganization is expected to be tax-free
to Fund shareholders. In addition, Fund shareholders will not bear any of the
expenses of the Reorganization. After the Reorganization, Fund shareholders will
be permitted to purchase additional shares of the Federated Fund and of other
funds advised by subsidiaries of Federated without paying any front-end sales
loads.

The Reorganization will take place only if Fund shareholders approve it. The
Fund's Board of Directors has called a special meeting of Fund shareholders to
be held on September 8, 2000, at which shareholders will vote on the
Reorganization. Proxy materials for the special meeting will be mailed to
shareholders in July. These proxy materials will contain more complete
information concerning the Reorganization, and you should review them carefully
before casting your vote on the Reorganization. You do not need to take any
action regarding the Reorganization before you receive these proxy materials. If
shareholders approve the Reorganization, the Reorganization is expected to be
completed shortly thereafter, assuming that other customary closing conditions
are satisfied.

Federated is one of the largest mutual fund companies in the United States,
managing over $125 billion in approximately 175 mutual funds and separate
accounts as of March 31, 2000. Federated, a publicly held company, was founded
in 1955 and is headquartered in Pittsburgh, Pennsylvania.

IAI Investment Funds III, Inc.
File No. 33-10207

SUPPLEMENT DATED JUNE 19, 2000
TO THE PROSPECTUS DATED MARCH 1, 2000
OF

IAI INTERNATIONAL FUND (a portfolio of IAI Investment Funds III, Inc.)

Proposed Combination with Federated International Equity Fund (a portfolio of
Federated International Series Inc.)

On June 12, 2000, the Board of Directors of IAI Investment Funds III, Inc.
approved a transaction (the "Reorganization") in which IAI International Fund
(the "Fund") will be combined into Federated International Equity Fund (the
"Federated Fund"), a portfolio of Federated International Series Inc. which is
advised by a subsidiary of Federated Investors, Inc. ("Federated") and which has
investment objectives and policies substantially similar to those of the Fund.
The Reorganization was proposed in conjunction with the sale by Investment
Advisers, Inc. ("IAI"), the investment adviser to the Fund, of its mutual fund
advisory business to Federated. On June 16, 2000 IAI and Federated reached a
definitive agreement covering such a sale.

In the Reorganization, Fund shareholders will receive, in exchange for their
Fund shares, Class A shares of the Federated Fund which have an equivalent net
asset value at the closing date. The Reorganization is expected to be tax-free
to Fund shareholders. In addition, Fund shareholders will not bear any of the
expenses of the Reorganization. After the Reorganization, Fund shareholders will
be permitted to purchase additional shares of the Federated Fund and of other
funds advised by subsidiaries of Federated without paying any front-end sales
loads.

The Reorganization will take place only if Fund shareholders approve it. The
Fund's Board of Directors has called a special meeting of Fund shareholders to
be held on September 8, 2000, at which shareholders will vote on the
Reorganization. Proxy materials for the special meeting will be mailed to
shareholders in July. These proxy materials will contain more complete
information concerning the Reorganization, and you should review them carefully
before casting your vote on the Reorganization. You do not need to take any
action regarding the Reorganization before you receive these proxy materials. If
shareholders approve the Reorganization, the Reorganization is expected to be
completed shortly thereafter, assuming that other customary closing conditions
are satisfied.

Federated is one of the largest mutual fund companies in the United States,
managing over $125 billion in approximately 175 mutual funds and separate
accounts as of March 31, 2000. Federated, a publicly held company, was founded
in 1955 and is headquartered in Pittsburgh, Pennsylvania.

IAI Investment Funds VI, Inc.
File No. 33-40496

SUPPLEMENT DATED JUNE 19, 2000
TO THE PROSPECTUS DATED JUNE 1, 2000
OF

IAI MONEY MARKET FUND (a portfolio of IAI Investment Funds VI, Inc.)

Proposed Combination with Automated Cash Management Trust
(a portfolio of Money Market Obligations Trust)

On June 12, 2000, the Board of Directors of IAI Investment Funds VI, Inc.
approved a transaction (the "Reorganization") in which IAI Money Market Fund
(the "Fund") will be combined into Automated Cash Management Trust (the
"Federated Fund"), a portfolio of Money Market Obligations Trust which is
advised by a subsidiary of Federated Investors, Inc. ("Federated") and which has
investment objectives and policies substantially similar to those of the Fund.
The Reorganization was proposed in conjunction with the sale by Investment
Advisers, Inc. ("IAI"), the investment adviser to the Fund, of its mutual fund
advisory business to Federated. On June 16, 2000 IAI and Federated reached a
definitive agreement covering such a sale.

In the Reorganization, Fund shareholders will receive, in exchange for their
Fund shares, Institutional Service Shares of the Federated Fund which have an
equivalent net asset value at the closing date. The Reorganization is expected
to be tax-free to Fund shareholders. In addition, Fund shareholders will not
bear any of the expenses of the Reorganization. After the Reorganization, Fund
shareholders will be permitted to purchase additional shares of the Federated
Fund and of other funds advised by subsidiaries of Federated without paying any
front-end sales loads.

The Reorganization will take place only if Fund shareholders approve it. The
Fund's Board of Directors has called a special meeting of Fund shareholders to
be held on September 8, 2000, at which shareholders will vote on the
Reorganization. Proxy materials for the special meeting will be mailed to
shareholders in July. These proxy materials will contain more complete
information concerning the Reorganization, and you should review them carefully
before casting your vote on the Reorganization. You do not need to take any
action regarding the Reorganization before you receive these proxy materials. If
shareholders approve the Reorganization, the Reorganization is expected to be
completed shortly thereafter, assuming that other customary closing conditions
are satisfied.

Federated is one of the largest mutual fund companies in the United States,
managing over $125 billion in approximately 175 mutual funds and separate
accounts as of March 31, 2000. Federated, a publicly held company, was founded
in 1955 and is headquartered in Pittsburgh, Pennsylvania.

                            SCHEDULE 14A INFORMATION

   Proxy                         Statement Pursuant to Section 14(a) of the
                                 Securities Exchange Act of 1934 (Amendment
                                 No.______)

Filed by the Registrant [  X  ]
Filed by a Party other than the Registrant [    ]

Check the appropriate box:

[  ]  Preliminary Proxy Statement

[  ]  Confidential, for Use of the Commission Only (as permitted by
      Rule 14a-6(e)(2))
[  ]  Definitive Proxy Statement
[  ]  Definitive Additional Materials

[ X]  Soliciting Material Pursuant to Sec. 240.14a-11(c) or
      Sec. 240.14a-12


Federated American Leaders Fund, Inc.
 ............................................................................
(Name of Registrant as Specified In Its Charter)


Federated Investors, Inc.
- ----------------------------------------------------------------------------
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

 [ X ]No fee required.
 [    ] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.

      1. Title of each class of securities to which transaction applies:

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      3. Per unit price or other underlying value of transaction computed
         pursuant to Exchange Act Rule 0-11 (set forth the amount on which the
         filing fee is calculated and state how it was determined):

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[ ] Fee paid previously with preliminary proxy materials.

[     ] Check box if any part of the fee is offset as provided by Exchange Act
      Rule 0-11(a)(2) and identify the filing for which the offsetting fee was
      paid previously. Identify the previous filing by registration statement
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      1) Amount Previously Paid:
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