Federated Fixed Income Securities N-CSR Certified annual shareholder report (management investment company)

                               United States
                    Securities and Exchange Commission
                          Washington, D.C. 20549

                                Form N-CSR
Certified Shareholder Report of Registered Management Investment Companies




                                 811-6447

                   (Investment Company Act File Number)


                  Federated Fixed Income Securities, Inc.
      _______________________________________________________________

            (Exact Name of Registrant as Specified in Charter)


                         Federated Investors Funds
                           5800 Corporate Drive
                    Pittsburgh, Pennsylvania 15237-7000


                              (412) 288-1900
                      (Registrant's Telephone Number)


                        John W. McGonigle, Esquire
                         Federated Investors Tower
                            1001 Liberty Avenue
                    Pittsburgh, Pennsylvania 15222-3779
                  (Name and Address of Agent for Service)
             (Notices should be sent to the Agent for Service)






                     Date of Fiscal Year End: 11/30/03


            Date of Reporting Period: Six months ended 5/31/03




Item 1.     Reports to Stockholders

Federated Investors
World-Class Investment Manager

Federated Limited Term Fund

Established 1991

A Portfolio of Federated Fixed Income Securities, Inc.

12TH SEMI-ANNUAL SHAREHOLDER REPORT

May 31, 2003

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

Financial Highlights -- Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)		Year Ended November 30,
	5/31/2003		2002		2001		2000		1999		1998
Net Asset Value, Beginning of Period	$9.13		$9.51		$9.30		$9.45		$9.82		$9.95
Income From Investment Operations:
Net investment income	0.17		0.41		0.54		0.63		0.57		0.60
Net realized and unrealized gain (loss) on investments and futures contracts	(0.09	)	(0.37	)	0.20		(0.14	)	(0.35	)	(0.13	)
TOTAL FROM INVESTMENT OPERATIONS	0.08		0.04		0.74		0.49		0.22		0.47
Less Distributions:
Distributions from net investment income	(0.17	)	(0.42	)	(0.53	)	(0.64	)	(0.59	)	(0.60	)
Net Asset Value, End of Period	$9.04		$9.13		$9.51		$9.30		$9.45		$9.82
Total Return1	0.86	%	0.44	%	8.18	%	5.42	%	2.31	%	4.81	%
Ratios to Average Net Assets:
Expenses	1.09	%2	1.05	%	1.18	%	1.17	%	1.10	%	1.10	%
Net investment income	3.75	%2	4.46	%	5.25	%	6.68	%	5.98	%	6.02	%
Expense waiver/reimbursement3	0.29	%2	0.28	%	0.24	%	0.40	%	0.37	%	0.47	%
Supplemental Data:
Net assets, end of period (000 omitted)	$260,543		$322,540		$432,539		$114,137		$139,452		$101,213
Portfolio turnover	37	%	38	%	24	%	30	%	29	%	93	%

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 ratios shown above.

See Notes which are an integral part of the Financial Statements

Financial Highlights -- Class F Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)		Year Ended November 30,
	5/31/2003		2002		2001		2000		1999		1998
Net Asset Value, Beginning of Period	$9.13		$9.51		$9.30		$9.45		$9.82		$9.95
Income From Investment Operations:
Net investment income	0.17		0.43		0.51		0.64		0.57		0.61
Net realized and unrealized gain (loss) on investments and futures contracts	(0.09	)	(0.38	)	0.25		(0.14	)	(0.34	)	(0.13	)
TOTAL FROM INVESTMENT OPERATIONS	0.08		0.05		0.76		0.50		0.23		0.48
Less Distributions:
Distributions from net investment income	(0.17	)	(0.43	)	(0.55	)	(0.65	)	(0.60	)	(0.61	)
Net Asset Value, End of Period	$9.04		$9.13		$9.51		$9.30		$9.45		$9.82
Total Return1	0.91	%	0.54	%	8.32	%	5.52	%	2.42	%	4.91	%
Ratios to Average Net Assets:
Expenses	0.99	%2	0.95	%	1.02	%	1.07	%	1.00	%	1.00	%
Net investment income	3.85	%2	4.55	%	5.59	%	6.78	%	6.00	%	6.09	%
Expense waiver/reimbursement3	0.04	%2	0.03	%	0.05	%	0.15	%	0.12	%	0.22	%
Supplemental Data:
Net assets, end of period (000 omitted)	$10,100		$10,337		$12,609		$7,960		$9,520		$13,358
Portfolio turnover	37	%	38	%	24	%	30	%	29	%	93	%

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 ratios shown above.

See Notes which are an integral part of the Financial Statements

Portfolio of Investments

May 31, 2003 (unaudited)

Principal Amount				Value
			ADJUSTABLE RATE MORTGAGES--0.2%
			Federal Home Loan Mortgage Corp.--0.2%
$	217,664		FHLMC ARM, 4.082%, 9/1/2019	$	224,886
	228,468		FHLMC ARM, 4.176%, 12/1/2018		235,711
			TOTAL		460,597
			Federal National Mortgage Assoc.--0.0%
	65,836		FNMA ARM, 4.250%, 12/1/2020		67,637
			TOTAL ADJUSTABLE RATE MORTGAGES (IDENTIFIED COST $520,808)		528,234
			ASSET-BACKED SECURITIES--26.4%
			Automotive--8.5%
	3,029,296		ANRC Auto Owner Trust 2001-A, Class A3, 3.76%, 10/17/2005		3,053,530
	219,767		AmSouth Auto Trust 2000-1, Class A3, 6.67%, 7/15/2004		220,749
	3,000,000		Americredit Automobile Receivables Trust 2001-B, Class A4, 5.37%, 6/12/2008		3,129,562
	1,410,192		Chase Manhattan Auto Owner Trust 2001-A, Class A3, 4.55%, 8/15/2005		1,428,962
	1,431,059		DaimlerChrysler Auto Trust 2000-E, Class A3, 6.11%, 11/8/2004		1,442,207
	2,000,000	3	DaimlerChrysler Master Owner Trust 2002-A, Class A, 1.37%, 5/15/2007		2,000,460
	1,863,236	1	First Tennessee Financial Auto Securitization Trust 2002-A, Class A, 3.55%, 7/15/2008		1,900,203
	971,316		Isuzu Auto Owner Trust 2001-1, Class A3, 4.88%, 11/22/2004		975,357
	2,446,565	1,2	Long Beach Acceptance Auto Receivables Trust 2001-1, Class A3, 5.198%, 3/31/2006		2,483,655
	1,500,000		M&I Auto Loan Trust 2001-1, Class B, 5.88%, 6/20/2008		1,570,875
	1,169,500		MMCA Automobile Trust 2000-2, Class B, 7.42%, 8/15/2005		1,215,866
	968,129		MMCA Automobile Trust 2001-2, Class B, 5.75%, 6/15/2007		987,978
	166,512		Mellon Auto Grantor Trust 2000-1, Class B, 7.43%, 10/15/2006		172,097
	1,479,368		Mellon Auto Grantor Trust 2000-2, Class B, 6.67%, 7/15/2007		1,540,244
	836,390		Navistar Financial Corp. Owner Trust 2001-A, Class A3, 4.99%, 8/15/2005		841,768
	59,303	1	Paragon Auto Receivables Owner Trust 1998-A, Class B, 7.47%, 11/15/2004		59,303
	76,418	1	Paragon Auto Receivables Owner Trust 1998-B, Class B, 7.03%, 3/15/2005		79,085
	62,108		Paragon Auto Receivables Owner Trust 1999-A, Class A, 5.95%, 11/15/2005		62,486
			TOTAL		23,164,387
Principal Amount				Value
			ASSET-BACKED SECURITIES--continued
			Credit Card--1.9%
$	246,702	1	Banco Nacional de Mexico S.A., Credit Card Merchant Voucher Receivables Master Trust Series 1996-A, Class A1, 6.25%, 12/1/2003	$	247,143
	1,790,881		Fingerhut Master Trust 1998-2, Class A, 6.23%, 2/15/2007		1,806,819
	2,000,000	1	MBNA Master Credit Card Trust 1999-M, Class C, 7.45%, 4/16/2007		2,131,280
	1,000,000		MBNA Master Credit Card Trust 2000-A, Class A, 7.35%, 7/16/2007		1,095,560
			TOTAL		5,280,802
			Equipment Leasing--0.7%
	1,826,233	1	Great America Leasing Receivables 2002-1, Class C, 4.91%, 7/15/2007		1,879,693
			Home Equity Loan--7.4%
	27,200,619		ACE Securities Corp. 2001-HE1, Class AIO, 6.00%, 8/20/2004		1,384,240
	902,264	1	AQ Finance NIM Trust 2002-1, Class NOT, 9.50%, 6/25/2032		884,787
	19,531,250		Ameriquest Mortgage Securities, Inc. 2002-3, Class S, 6.00%, 8/25/2032		1,614,453
	21,800,000		Asset Backed Funding Certificate 2002-OPT1, Class AIO, 6.00%, 3/25/2005		1,344,624
	30,769,231		Centex Home Equity 2002-B, Class AIO, 6.00%, 11/25/2003		656,000
	27,690,250		Centex Home Equity 2002-C, Class AIO, 6.00%, 8/25/2004		1,176,836
	322,518	3	Chase Funding Mortgage Loan Asset-Backed Certificates 1999-1, Class IIB, 4.07%, 6/25/2028		324,621
	112,299		Cityscape Home Equity Loan Trust 1997-4, Class B, 7.94%, 10/25/2018		115,894
	1,477,532		Conseco Finance 2001-B, Class 1A3, 5.808%, 6/15/2032		1,487,198
	22,384,615		Conseco Finance 2001-D, Class AIO, 8.80%, 11/15/2032		1,389,861
	52,284		EQCC Home Equity Loan Trust 1995-4, Class A4, 6.95%, 3/15/2012		53,225
	26,000,000		Equity One ABS, Inc. 2001-3, Class AIO, 5.00%, 10/25/2031		644,540
	575,412	1	First Franklin NIM Trust 2001-FF2, Class NOT, 8.35%, 11/26/2031		575,412
	782,252	1	First Plus Home Loan Trust 1997-3, Class B2, 8.50%, 11/10/2023		791,600
	2,339,154		First Plus Home Loan Trust 1997-4, Class M1, 7.14%, 9/11/2023		2,405,562
	2,000,000		Green Tree Home Improvement Loan Trust 1997-C, Class HEB2, 7.59%, 8/15/2028		1,473,000
	200,308		Independent National Mortgage Corp. Home Equity 1997-A, Class BF, 7.39%, 10/25/2028		201,636
	18,038,000		Irwin Home Equity 2001-2, Class AIO, 10.00%, 3/25/2004		1,325,252
	889,162		Mellon Bank Home Equity Installment Loan Trust 1997-1, Class A4, 6.84%, 7/25/2012		917,980
Principal Amount				Value
			ASSET-BACKED SECURITIES--continued
			Home Equity Loan--continued
$	249,344	1	NC Finance Trust 1999-1, Class B, 8.75%, 1/25/2029	$	59,843
	1,006,228	1	Saxon Asset Securities Trust 1998-1, Class BF2, 7.68%, 3/25/2028		1,002,132
	133,096	3	Saxon Asset Securities Trust 2000-2, Class AV1, 1.58%, 7/25/2030		133,497
			TOTAL		19,962,193
			Manufactured Housing--1.8%
	750,000		Green Tree Financial Corp. 1995-3, Class B1, 7.85%, 8/15/2025		598,530
	1,250,000		Green Tree Financial Corp. 1996-2, Class B-1, 7.55%, 4/15/2027		338,288
	1,374,271		Green Tree Financial Corp. 1997-1, Class A5, 6.86%, 3/15/2028		1,408,422
	2,250,000		Green Tree Financial Corp. 1997-3, Class B1, 7.51%, 3/15/2028		446,715
	500,344		Green Tree Financial Corp. 1998-2, Class A5, 6.24%, 11/1/2016		508,825
	4,000,000		Green Tree Financial Corp. 1999-5, Class B1, 9.20%, 4/1/2031		408,880
	2,000,000	1	Merit Securities Corp. 12, Class 1B, 7.98%, 7/28/2033		600,000
	500,000	3	Vanderbilt Mortgage Finance 1999-A, Class 2B2, 3.91%, 6/7/2016		473,266
			TOTAL		4,782,926
			Non-Agency Mortgage--2.2%
	3,000,000	1,3	Harwood Street Funding I LLC 2001-1A, Class CTF, 3.118%, 9/20/2004		2,979,390
	2,770,125	3	Impac CMB Trust 2002-7, Class A, 1.75%, 11/25/2032		2,778,297
	430,089	1,2,3	SMFC Trust Asset-Backed Certificates, Series 1997-A, Class 4, 4.746%, 1/20/2035		330,365
			TOTAL		6,088,052
			Other--2.2%
	626,779	1	CapitalSource Commercial Loan Trust 2002-2A, Class A, 1.868%, 9/20/2010		626,779
	1,735,313		Caterpillar Financial Asset Trust 2001-A, Class A3, 4.85%, 4/25/2007		1,773,597
	27,309,040		Conseco Recreational Enthusiast Consumer Trust 2001-A, Class AIO, 5.00%, 8/15/2025		1,415,728
	2,366,249	1	FMAC Loan Receivables Trust 1997-A, Class A-X, 1.00%, 4/01/2019		82,819
	2,200,000		Green Tree Home Improvement Loan Trust 1996-F, Class HIB2, 7.70%, 11/15/2027		1,985,984
			TOTAL		5,884,907
Principal Amount				Value
			ASSET-BACKED SECURITIES--continued
			Rate Reduction Bond--1.7%
$	2,780,000		California Infrastructure & Economic Development Bank Special Purpose Trust SCE-1, Class A6, 6.38%, 9/25/2008	$	3,027,225
	414,035		California Infrastructure & Economic Development Bank Special Purpose Trust SDG&E-1 1997-1, Class A5, 6.19%, 9/25/2005		417,517
	1,000,000		California Infrastructure & Economic Development Bank Special Purpose Trust SDG&E-1 1997-1, Class A6, 6.31%, 9/25/2008		1,087,680
			TOTAL		4,532,422
			TOTAL ASSET-BACKED SECURITIES (IDENTIFIED COST $81,480,357)		71,575,382
			COLLATERALIZED MORTGAGE OBLIGATIONS--9.5%
			Commercial Mortgage--0.0%
	3,033,771		First Union Lehman Brothers Commercial Mortgage Trust 1997-C1, Class IO, 0.99%, 6/18/2029		134,948
			Federal Home Loan Mortgage Corp.--4.2%
	12,832,992		Federal Home Loan Mortgage Corp., Series 2416, Class PI, 6.00%, 8/15/2012		233,773
	1,670,693		Federal Home Loan Mortgage Corp., Series 2603, Class AC, 2.00%, 12/15/2008		1,665,096
	3,000,000		Federal Home Loan Mortgage Corp., Series SF1, Class A3, 2.00%, 12/15/2008		2,996,250
	5,000,000		Federal Home Loan Mortgage Corp. Structured Pass Through H008, Class A3, 2.29%, 6/15/2007		5,013,500
	1,500,000		Federal Home Loan Mortgage Corp. Structured Pass Through H009, Class A2, 1.876%, 3/15/2008		1,496,250
			TOTAL		11,404,869
			Non-Agency Mortgage--5.3%
	784,146	1	Bayview Financial Acquisition Trust 1998-1, Class MI3, 8.21%, 5/25/2029		711,856
	410,458	3	Citicorp Mortgage Securities, Inc. 1992-18, Class A1, 4.316%, 11/25/2022		422,329
	270,113	1	GE Capital Mortgage Services, Inc. 1994-3, Class B4, 6.50%, 1/25/2024		247,953
	1,868,945		GE Capital Mortgage Services, Inc. 1998-16, Class A3, 6.50%, 11/25/2013		1,937,759
	2,699,002		GSR Mortgage Loan Trust 2002-10, Class A2B, 3.322%, 11/25/2032		2,714,666
Principal Amount				Value
			COLLATERALIZED MORTGAGE OBLIGATIONS--continued
			Non-Agency Mortgage--continued
$	2,876,435		PNC Mortgage Securities Corp. 1997-2, Class B1, 7.50%, 3/25/2027	$	3,060,182
	995,183	1,2,3	RESI Finance LP 2002-A, Class B3, 2.91%, 10/10/2034		996,427
	214,713	1	Resecuritization Mortgage Trust 1998-A, Class B3, 7.860%, 10/26/2023		167,274
	288,153		Residential Funding Mortgage Securities I 1996-S1, Class A11, 7.10%, 1/25/2026		292,211
	393,394		Residential Funding Mortgage Securities I 1997-S17, Class A14, 7.00%, 11/25/2027		393,180
	67,240		Structured Asset Securities Corp. 1999-ALS2, Class A2, 6.75%, 7/25/2029		67,490
	1,250,000		Washington Mutual 2003-AR1, Class A2, 2.92%, 3/25/2033		1,279,726
	2,000,000		Washington Mutual 2003-AR3, Class A2, 2.828%, 4/25/2033		1,997,640
			TOTAL		14,288,693
			TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS (IDENTIFIED COST $26,380,560)		25,828,510
			CORPORATE BONDS--31.2%
			Basic Industries - Metals & Mining--0.6%
	1,500,000		Noranda, Inc., Deb., 8.125%, 6/15/2004		1,564,875
			Basic Industries - Paper--1.2%
	1,000,000		International Paper Co., 8.125%, 7/8/2005		1,123,110
	2,000,000		Weyerhaeuser Co., Note, 5.50%, 3/15/2005		2,117,320
			TOTAL		3,240,430
			Beverage & Tobacco--0.4%
	1,000,000		Diageo Capital PLC, 3.375%, 3/20/2008		1,029,130
			Capital Goods - Diversified Manufacturing--0.6%
	1,500,000		Tyco International Group, Sr. Note, 6.25%, 6/15/2003		1,503,750
			Capital Goods- Aerospace & Defense--1.3%
	1,250,000		General Dynamics Corp., 2.125%, 5/15/2006		1,257,913
	2,000,000		Raytheon Co., Note, 6.30%, 3/15/2005		2,148,020
			TOTAL		3,405,933
			Communications - Media & Cable--0.4%
	1,100,000		Comcast Corp., 6.375%, 1/30/2006		1,203,796
Principal Amount				Value
			CORPORATE BONDS--continued
			Communications - Media Noncable--0.6%
$	1,650,000		Clear Channel Communications, Inc., 7.25%, 9/15/2003	$	1,674,816
			Communications - Telecom Wirelines--0.5%
	1,250,000		Citizens Communications Co., Note, 8.50%, 5/15/2006		1,451,175
			Consumer Cyclical - Automotive--1.2%
	1,500,000		DaimlerChrysler North America Holding Corp., Unsecd. Note, 7.40%, 1/20/2005		1,624,620
	1,500,000	4	Hertz Corp., Jr. Sub. Note, 7.00%, 7/15/2003		1,506,705
			TOTAL		3,131,325
			Consumer Cyclical - Entertainment--0.8%
	850,000		AOL Time Warner, Inc., 5.625%, 5/1/2005		900,040
	1,250,000		Viacom, Inc., Sr. Note, 7.75%, 6/1/2005		1,398,850
			TOTAL		2,298,890
			Consumer Cyclical - Retailers--1.5%
	1,000,000		CVS Corp., 5.625%, 3/15/2006		1,097,740
	750,000		Target Corp., 3.375%, 3/1/2008		775,342
	2,000,000		Wal-Mart Stores, Inc., 4.15%, 6/15/2005		2,101,400
			TOTAL		3,974,482
			Consumer Non - Food/Beverage--0.5%
	1,300,000		Kellogg Co., Note, 6.00%, 4/1/2006		1,438,996
			Consumer Non - Supermarkets--0.4%
	1,000,000		Meyer (Fred), Inc., Sr. Note, 7.375%, 3/1/2005		1,090,340
			Consumer Products--0.4%
	1,000,000		Albecca, Inc., Company Guarantee, 10.75%, 8/15/2008		1,071,250
			Cosmetics & Toiletries--0.4%
	1,100,000	4	Gillette Co., 2.875%, 3/15/2008		1,121,329
			Energy - Integrated--1.2%
	3,000,000		Conoco, Inc., 5.45%, 10/15/2006		3,315,030
			Finance - Automotive--1.1%
	2,000,000		Ford Motor Credit Co., Note, 6.625%, 6/30/2003		2,006,940
	1,000,000		General Motors Acceptance Corp., Note, 6.75%, 1/15/2006		1,067,510
			TOTAL		3,074,450
Principal Amount				Value
			CORPORATE BONDS--continued
			Finance - Other--0.5%
$	1,200,000		Mellon Funding Corp., 7.50%, 6/15/2005	$	1,340,172
			Financial Institutions - Banking--0.9%
	1,000,000		PNC Funding Corp., 5.75%, 8/1/2006		1,105,710
	1,100,000		Wachovia Bank N.A., Sr. Note, 4.85%, 7/30/2007		1,200,903
			TOTAL		2,306,613
			Financial Institutions - Brokerage--2.2%
	2,000,000		Amvescap PLC, Sr. Note, 6.60%, 5/15/2005		2,163,360
	1,200,000	4	Merrill Lynch & Co., Inc., Note, 6.00%, 11/15/2004		1,275,924
	2,500,000		Salomon Smith Barney Holdings, Inc., Note, 7.00%, 3/15/2004		2,612,425
			TOTAL		6,051,709
			Financial Institutions - Finance Captive--0.9%
	1,250,000		American Express Co., 3.75%, 11/20/2007		1,312,250
	1,000,000		Capital One Bank, Sr. Note, 8.25%, 6/15/2005		1,077,550
			TOTAL		2,389,800
			Financial Institutions - Insurance - Life--0.4%
	1,000,000	1,2	Metropolitan Life Insurance Co., 7.00%, 11/1/2005		1,115,430
			Financial Institutions - Insurance - P&C--0.9%
	1,100,000	1,2	Allstate Financial Global, Note, Series 144A, 7.125%, 9/26/2005		1,224,828
	1,200,000		Marsh & McLennan Cos., Inc., 5.375%, 3/15/2007		1,326,432
			TOTAL		2,551,260
			Financial Institutions - Reits--1.7%
	3,000,000		EOP Operating LP, 7.375%, 11/15/2003		3,070,560
	1,250,000		Simon Property Group, Inc., 6.375%, 11/15/2007		1,401,850
			TOTAL		4,472,410
			Financial Intermediaries--0.9%
	1,150,000		Texaco Capital, Inc., 5.70%, 12/1/2008		1,252,304
	1,000,000		Wells Fargo & Co., Sr. Note, 7.25%, 8/24/2005		1,121,060
			TOTAL		2,373,364
Principal Amount				Value
			CORPORATE BONDS--continued
			Financial Services--2.0%
$	1,500,000		General Electric Capital Corp., 5.35%, 3/30/2006	$	1,633,650
	1,250,000	1,2	Goldman Sachs Group LP, 6.75%, 2/15/2006		1,388,250
	1,000,000		Morgan Stanley, Unsub., 6.10%, 4/15/2006		1,107,240
	1,100,000		SLM Corporation, 5.625%, 4/10/2007		1,229,305
			TOTAL		5,358,445
			Food & Drug Retailers--1.2%
	2,000,000		Albertsons, Inc., Sr. Note, 6.55%, 8/1/2004		2,102,980
	975,000		Safeway, Inc., 6.15%, 3/1/2006		1,063,530
			TOTAL		3,166,510
			Food Products--0.4%
	1,100,000		General Mills, Inc., 3.875%, 11/30/2007		1,152,063
			Insurance--0.8%
	1,250,000		Equitable Cos., Inc., Note, 6.50%, 4/1/2008		1,413,700
	750,000		HSB Group, Inc., Company Guarantee, 2.19875%, 7/15/2027		705,045
			TOTAL		2,118,745
			Pharmaceutical--0.4%
	1,000,000		Johnson & Johnson, Deb., 8.72%, 11/1/2024		1,158,180
			Real Estate--0.9%
	2,175,000		Security Capital Group, Inc., Sr. Note, 6.95%, 6/15/2005		2,396,524
			Sovereign--0.5%
	1,200,000		Quebec, Province of, 5.50%, 4/11/2006		1,312,800
			State/Provincial--0.4%
	1,000,000		Ontario, Province of, 2.35%, 6/30/2006		1,014,430
			Technology Services--0.8%
	1,000,000		Computer Sciences Corp., 7.50%, 8/8/2005		1,115,510
	1,000,000	1,2	FIserv, Inc., 4.00%, 4/15/2008		1,037,790
			TOTAL		2,153,300
Principal Amount				Value
			CORPORATE BONDS--continued
			Telecommunications & Cellular--1.7%
$	1,300,000		AT&T Wireless Services, Inc., 6.875%, 4/18/2005	$	1,395,394
	1,150,000		SBC Communications, Inc., Note, 5.75%, 5/2/2006		1,269,842
	2,000,000		Verizon Wireless, Inc., Note, 1.65875%, 12/17/2003		2,001,040
			TOTAL		4,666,276
			Utility - Electric--0.6%
	500,000		Alabama Power Co., 2.65%, 2/15/2006		510,445
	1,000,000		PSEG Power LLC, 6.875%, 4/15/2006		1,116,560
			TOTAL		1,627,005
			TOTAL CORPORATE BONDS (IDENTIFIED COST $81,947,562)		84,315,033
			MORTGAGE BACKED SECURITIES--0.1%
			Government National Mortgage Assoc.--0.1%
	174,787		Government National Mortgage Association, Pool 423843, 8.50%, 8/15/2026 (identified cost $181,068)		191,283
			GOVERNMENT AGENCIES--7.1%
			Federal Home Loan Mortgage Corp.--2.3%
	6,000,000		Federal Home Loan Mortgage Corp., 2.375%, 4/15/2006		6,113,940
			Federal National Mortgage Assoc.--4.8%
	4,000,000		Federal National Mortgage Association, Note, 5.125%, 2/13/2004		4,111,960
	8,000,000		Federal National Mortgage Association, Note, 6.00%, 12/15/2005		8,877,040
			TOTAL		12,989,000
			TOTAL GOVERNMENT AGENCIES (IDENTIFIED COST $18,696,740)		19,102,940
			U.S. TREASURY NOTES--13.4%
	12,500,000	4	2.125%, 10/31/2004		12,666,000
	10,000,000	4	3.25%, 8/15/2007		10,490,600
	3,000,000	4	3.50%, 11/15/2006		3,174,840
	9,000,000	4	5.75%, 11/15/2005		9,937,980
			TOTAL U.S. TREASURY NOTES (IDENTIFIED COST $35,215,428)		36,269,420
Shares				Value
			MUTUAL FUNDS--26.3%
	2,085,584		Federated Mortgage Core Portfolio	$	21,439,802
	1,499,709		High Yield Bond Portfolio		9,808,095
	592,358		Prime Value Obligations Fund, Class IS		592,358
	39,317,510		Prime Value Obligations Fund, Class IS (held as collateral for securities lending)		39,317,510
			TOTAL MUTUAL FUNDS (IDENTIFIED COST $72,235,454)		71,157,765
			TOTAL INVESTMENTS--114.2% (IDENTIFIED COST $316,657,977)5		308,968,567
			OTHER ASSETS AND LIABILITIES -- NET--(14.2)%		(38,325,185	)
			TOTAL NET ASSETS--100%	$	270,643,382

1 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. At May 31, 2003, these securities amounted to $23,603,297 which represents 8.7% of total net assets. Included in these amounts are securities which have been deemed liquid (amounting to $8,576,745 and representing 3.2% of total net assets).

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

3 Denotes variable rate securities, which shows current rate and final maturity date.

4 Certain principal amounts are temporarily on loan to unaffiliated broker/dealers.

5 The cost of investments for federal tax purposes amounts to $316,657,977.

Note: The categories of investments are shown as a percentage of total net assets at May 31, 2003.

The following acronyms are used throughout this portfolio:

ARM	- --Adjustable Rate Mortgage
FHLMC	- --Federal Home Loan Mortgage Corporation
FNMA	- --Federal National Mortgage Association

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

May 31, 2003 (unaudited)

Assets:
Total investments in securities, at value including $38,520,215 of securities loaned (identified cost $316,657,977)			$	308,968,567
Income receivable				2,546,914
Receivable for investments sold				220,131
Receivable for shares sold				2,659,641
Receivable for daily variation margin				15,506
TOTAL ASSETS				314,410,759
Liabilities:
Payable for shares redeemed	$	4,160,057
Income distribution payable		229,197
Payable for collateral due to broker		39,317,510
Accrued expenses		60,613
TOTAL LIABILITIES				43,767,377
Net assets for 29,944,138 shares outstanding			$	270,643,382
Net Assets Consist of:
Paid in capital			$	297,568,923
Net unrealized depreciation of investments				(7,689,410	)
Accumulated net realized loss on investments and futures contracts				(18,856,549	)
Distributions in excess of net investment income				(379,582	)
TOTAL NET ASSETS			$	270,643,382
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net asset value per share ($260,543,231÷ 28,826,687 shares outstanding)				$9.04
Offering price per share (100/99.00 of $9.04)1				$9.13
Redemption proceeds per share				$9.04
Class F Shares:
Net asset value per share ($10,100,151 ÷ 1,117,451 shares outstanding)				$9.04
Offering price per share (100/99.00 of $9.04)1				$9.13
Redemption proceeds per share (99.00/100 of $9.04)1				$8.95

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, 2003 (unaudited)

Investment Income:
Dividends							$	536,452
Interest (including income on securities loaned of $24,225)								6,828,426
TOTAL INCOME								7,364,878
Expenses:
Investment adviser fee				$	608,499
Administrative personnel and services fee					114,398
Custodian fees					11,335
Transfer and dividend disbursing agent fees and expenses					100,828
Directors'/Trustees' fees					2,751
Auditing fees					7,507
Legal fees					2,456
Portfolio accounting fees					45,643
Distribution services fee--Class A Shares					734,895
Distribution services fee--Class F Shares					7,719
Shareholder services fee--Class A Shares					367,447
Shareholder services fee--Class F Shares					12,865
Share registration costs					26,997
Printing and postage					24,255
Insurance premiums					801
Taxes					9,468
Miscellaneous					1,145
TOTAL EXPENSES					2,079,009
Waivers and Reimbursement:
Waiver of investment adviser fee	$	(17,628	)
Waiver of distribution services fee--Class A Shares		(411,541	)
Waiver of distribution services fee--Class F Shares		(1,544	)
Reimbursement of investment adviser fee		(2,398	)
TOTAL WAIVERS AND REIMBURSEMENT					(433,111	)
Net expenses								1,645,898
Net investment income								5,718,980
Realized and Unrealized Gain (Loss) on Investments and Futures Contracts:
Net realized loss on investments								(1,903,472	)
Net realized loss on futures contracts								(34,494	)
Net change in unrealized appreciation (depreciation) of investments and futures contracts								(1,181,790	)
Net realized and unrealized loss on investments and futures contracts								(3,119,756	)
Change in net assets resulting from operations							$	2,599,224

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) 5/31/2003				Year Ended 11/30/2002
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	5,718,980		$	17,305,479
Net realized gain loss on investments and futures contracts		(1,937,966	)		(8,228,149	)
Net change in unrealized appreciation/depreciation of investments and futures contracts		(1,181,790	)		(7,634,223	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		2,599,224			1,443,107
Distributions to Shareholders:
Distributions from net investment income
Class A Shares		(5,442,468	)		(17,051,526	)
Class F Shares		(195,944	)		(490,417	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(5,638,412	)		(17,541,943	)
Share Transactions:
Proceeds from sale of shares		131,288,488			371,181,365
Net asset value of shares issued to shareholders in payment of distributions declared		4,758,590			11,336,343
Cost of shares redeemed		(195,240,984	)		(478,689,854	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		(59,193,906	)		(96,172,146	)
Change in net assets		(62,233,094	)		(112,270,982	)
Net Assets:
Beginning of period		332,876,476			445,147,458
End of period (including distributions in excess of net investment income of $(379,582) and $(460,150), respectively)	$	270,643,382		$	332,876,476

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

May 31, 2003 (unaudited)

ORGANIZATION

Federated Fixed Income Securities, 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 four portfolios. The financial statements included herein are only those of Federated Limited Term 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 two classes of shares: Class A Shares and Class F Shares. The investment objective of the Fund is to seek a high level of current income consistent with minimum fluctuation in principal value through compilation of a portfolio, the weighted-average duration of which will at all times be limited to three years or less.

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 ("GAAP").

Investment Valuation

United States government securities, listed corporate bonds, other fixed-income and asset backed securities, 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. Investments in other open-end registered investment companies are valued at net asset value. Securities for which no quotations are readily available are valued at fair value as determined in good faith using methods approved by the Board of Directors (the "Directors").

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund may invest in Federated Core Trust, ("Core Trust") which is managed by Federated Investment Management Company, the Fund's Adviser. Core Trust is an open-end management company, registered under the Investment Company Act of 1940, available only to registered investment companies and other institutional investors. The investment objective of High Yield Bond Portfolio, a series of Core Trust, is to seek high current income by investing primarily in a diversified portfolio of lower rated fixed income securities. The investment objective of Federated Mortgage Core Portfolio, a series of Core Trust, is to seek total return by investing in a diversified portfolio of mortgage-backed fixed income securities. Federated receives no advisory or administrative fees on behalf of Core Trust. Income distributions from Core Trust are declared daily and paid monthly, and are recorded by the Fund as dividend income. Capital gain distributions, if any, from Core Trust are declared and paid annually, and are recorded by the Fund as capital gains. Additional information regarding High Yield Bond Portfolio and/or Federated Mortgage Core Portfolio is available upon request.

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 the guidelines and/or standards reviewed or established by 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. 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.

Premium and Discount Amortization/Paydown Gains and Losses

All premiums and discounts are amortized/accreted. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

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.

Futures Contracts

The Fund purchases bond futures contracts to manage cash flows, enhance yield and to potentially reduce transaction costs. Upon entering into a bond futures contract with a broker, the Fund is required to deposit in a segregated account a specified amount of cash or U.S. government securities. Futures contracts are valued daily and unrealized gains or losses are recorded in a "variation margin" account. The Fund receives from or pays to the broker a specified amount of cash based upon changes in the variation margin account. When a contract is closed, the Fund recognizes a realized gain or loss. For the six months ended May 31, 2003, the Fund had realized losses of $34,494 for futures contracts.

Futures contracts have market risks, including the risk that the change in the value of the contract may not correlate with changes in the value of the underlying securities.

At May 31, 2003, the Fund had no outstanding futures contracts.

Securities Lending

The Fund participates in a securities lending program providing for the lending of corporate bonds, equity and government securities to qualified brokers. Collateral for securities is invested in an affiliated money market fund. Collateral is maintained at a minimum level of 102% of the market value on investments loaned, plus interest, if applicable. Earnings on collateral are allocated between the custodian securities lending agent, as a fee for its services under the program, and the Fund, according to agreed-upon rates.

As of May 31, 2003, securities subject to this type of arrangement and related collateral were as follows:

Market Value of Securities Loaned	Market Value of Collateral
$38,520,215	$39,317,510

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 in good faith using methods approved by the Directors.

Additional information on each restricted illiquid security held at May 31, 2003 is as follows:

Security	Acquisition Date	Acquisition Cost
AQ Finance NIM Trust 2002-1, 9.50%, 6/25/2032	3/15/2002	$  901,732
Banco Nacional de Mexico S.A., Credit Card Merchant Voucher Receivables Master Trust Series 1996-A, 6.25%, 12/1/2003	1/9/1997	241,421
Bayview Financial Acquisition Trust 1998-1, 8.21%, 5/25/2029	5/14/1998	783,779
CapitalSource Commercial Loan Trust 2002-2A, 1.868%, 09/20/2010	10/25/2002	626,779
First Franklin NIM Trust 2001-FF2, 8.35%, 11/26/2031	11/14/2001	575,412
First Plus Home Loan Trust 1997-3, 8.50%, 11/10/2023	9/27/2001	776,386
First Tennessee Financial Auto Securitization Trust 2002-A, 3.55%, 7/15/2008	6/10/2002	1,862,945
FMAC Loan Receivables Trust 1997-A, 1.00%, 4/15/2019	6/16/1997	358,660
GE Capital Mortgage Services, Inc. 1994-3, 6.50%, 1/25/2024	7/10/1997	183,263
Great American Leasing Receivables 2002-1, 4.91%, 7/15/2007	3/22/2002	1,826,033
Harwood Street Funding I LLC 2001-1A, 3.118%, 9/20/2004	11/30/2001	3,000,000
MBNA Master Credit Card Trust 1999-M, 7.45%, 4/16/2007	2/23/2000	999,773
Merit Securities Corp., 7.98%, 7/28/2033	5/18/1999	1,987,990
NC Finance Trust 1999-1, 8.75%, 1/25/2029	2/23/1999	248,139
Paragon Auto Receivables Owner Trust 1998-A, 7.47%, 11/15/2004	5/14/1998	59,299
Paragon Auto Receivables Owner Trust 1998-B, 7.03%, 3/15/2005	9/9/1998	76,409
Resecuritization Mortgage Trust 1998-A, 7.86%, 10/26/2023	2/12/1999	158,786
Saxon Asset Securities Trust 1998-1, 7.68%, 3/25/2028	3/5/1998 -- 5/21/1999	931,857

Use of Estimates

The preparation of financial statements in conformity with GAAP 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, 2003, par value shares ($0.001 per share) authorized were as follows:

Share Class Name	Number of Par Value Capital Stock Authorized
Class A	1,000,000,000
Class F	1,000,000,000
TOTAL	2,000,000,000

Transactions in capital stock were as follows:

	Six Months Ended 5/31/2003					Year Ended 11/30/2002
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	14,297,452		$	129,878,189		39,196,361		$	366,581,379
Shares issued to shareholders in payment of distributions declared	507,961			4,621,983		1,183,189			11,053,827
Shares redeemed	(21,313,233	)		(193,560,813	)	(50,535,697	)		(471,969,830	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	(6,507,820	)	$	(59,060,641	)	(11,156,147	)	$	(94,334,624	)
	Six Months Ended 5/31/2003					Year Ended 11/30/2002
Class F Shares:	Shares			Amount		Shares			Amount
Shares sold	154,563		$	1,410,299		493,378		$	4,599,986
Shares issued to shareholders in payment of distributions declared	15,018			136,607		30,241			282,516
Shares redeemed	(184,557	)		(1,680,171	)	(717,528	)		(6,720,024	)
NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS	(14,976	)	$	(133,265	)	(193,909	)	$	(1,837,522	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	(6,522,796	)	$	(59,193,906	)	(11,350,056	)	$	(96,172,146	)

FEDERAL TAX INFORMATION

At May 31, 2003, the cost of investments for federal tax purposes was $316,657,977. The unrealized depreciation of investments for federal tax purposes was $7,689,410. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $4,566,881 and net unrealized depreciation from investments for those securities having an excess of cost over value of $12,256,291.

At May 31, 2003, the Fund had a capital loss carryforward of $16,956,174, 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	$  1,407,407
2004	$  97,949
2005	$  261,311
2007	$3,092,726
2008	$ 1,717,623
2009	$2,001,771
2010	$ 8,377,387

OTHER TAXES

As an open-end management investment company incorporated in the state of Maryland but domiciled in Pennsylvania, the Fund is subject to the Pennsylvania Franchise Tax. This franchise tax is assessed annually on the value of the Fund, as represented by average net assets for the tax year.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.40% 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.

Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the Fund may invest in Prime Value Obligations Fund, which is managed by the Adviser. The Adviser has agreed to reimburse certain investment adviser fees as a result of these transactions.

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 0.150% 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 and Class F 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	0.50%
Class F Shares	0.15%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion.

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 the 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.

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.

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 long-term U.S. government securities and short-term obligations (and in-kind contributions), for the six months ended May 31, 2003, were as follows:

Purchases	$	85,607,575
Sales	$	143,011,011

Purchases and sales of long-term U.S. government securities for the six months ended May 31, 2003, were as follows:

Purchases	$	25,040,643
Sales	$	8,777,426

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 prospectus, which contains facts concerning its objective and policies, management fees, expenses and other information.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the householding program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of householding. Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of householding at any time by calling 1-800-341-7400.

Federated Investors
World-Class Investment Manager

Federated Limited Term Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 31417P106
Cusip 31417P205

Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.

3070201 (7/03)

Federated Investors
World-Class Investment Manager

Federated Limited Term Municipal Fund

Established 1993

A Portfolio of Federated Fixed Income Securities, Inc.

10TH SEMI-ANNUAL SHAREHOLDER REPORT

May 31, 2003

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

Financial Highlights--Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended November 30,
	5/31/2003			2002			2001			2000			1999			1998
Net Asset Value, Beginning of Period	$9.83			$9.74			$9.56			$9.60			$9.86			$9.78
Income From Investment Operations:
Net investment income	0.11			0.26	1		0.34			0.39			0.39			0.40
Net realized and unrealized gain (loss) on investments and futures contracts	0.14			0.09	1		0.18			(0.04	)		(0.26	)		0.08
TOTAL FROM INVESTMENT OPERATIONS	0.25			0.35			0.52			0.35			0.13			0.48
Less Distributions:
Distributions from net investment income	(0.11	)		(0.26	)		(0.34	)		(0.39	)		(0.39	)		(0.40	)
Net Asset Value, End of Period	$9.97			$9.83			$9.74			$9.56			$9.60			$9.86
Total Return2	2.57	%		3.59	%		5.53	%		3.75	%		1.29	%		4.95	%
Ratios to Average Net Assets:
Expenses	0.98	%3		0.98	%		0.98	%		0.95	%		0.90	%		0.90	%
Net investment income	2.23	%3		2.58	%1		3.42	%		4.12	%		3.94	%		4.08	%
Expense waiver/reimbursement4	0.11	%3		0.16	%		0.28	%		0.40	%		0.31	%		0.50	%
Supplemental Data:
Net assets, end of period (000 omitted)	$245,651		$225,572			$148,914			$54,995			$97,612			$72,174
Portfolio turnover	11	%		39	%		39	%		6	%		25	%		25	%

1 Effective December 1, 2001, the Fund has adopted the provisions of the American Institute of Certified Public Accountants ("AICPA") Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premiums on long-term debt securities. For the year ended November 30, 2002, this effect had no change on the net investment income per share, net realized and unrealized gain (loss) on investments per share, or the ratio of net investment income to average net assets. Per share, ratios and supplemental data for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation.

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 F Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended November 30,
	5/31/2003			2002			2001			2000			1999			1998
Net Asset Value, Beginning of Period	$9.83			$9.74			$9.56			$9.60			$9.86			$9.78
Income From Investment Operations:
Net investment income	0.12			0.28	1		0.37			0.42			0.41			0.42
Net realized and unrealized gain (loss) on investments and futures contracts	0.14			0.09	1		0.18			(0.04	)		(0.26	)		0.08
TOTAL FROM INVESTMENT OPERATIONS	0.26			0.37			0.55			0.38			0.15			0.50
Less Distributions:
Distributions from net investment income	(0.12	)		(0.28	)		(0.37	)		(0.42	)		(0.41	)		(0.42	)
Net Asset Value, End of Period	$9.97			$9.83			$9.74			$9.56			$9.60			$9.86
Total Return2	2.70	%		3.85	%		5.80	%		4.01	%		1.54	%		5.21	%
Ratios to Average Net Assets:
Expenses	0.73	%3		0.73	%		0.73	%		0.70	%		0.65	%		0.65	%
Net investment income	2.48	%3		2.85	%1		3.72	%		4.37	%		4.18	%		4.28	%
Expense waiver/reimbursement4	0.26	%3		0.31	%		0.43	%		0.55	%		0.46	%		0.65	%
Supplemental Data:
Net assets, end of period (000 omitted)	$18,575		$17,416			$18,955			$15,164			$28,006			$28,964
Portfolio turnover	11	%		39	%		39	%		6	%		25	%		25	%

1 Effective December 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premiums on long-term debt securities. For the year ended November 30, 2002, this effect had no change on the net investment income per share, net realized and unrealized gain (loss) on investments per share, or the ratio of net investment income to average net assets. Per share, ratios and supplemental data for the periods prior to December 1, 2001 have not been restated to reflect this change in presentation.

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

Portfolio of Investments

May 31, 2003 (unaudited)

Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--95.1%
			Alabama--2.8%
$	1,000,000		Alabama State Public School & College Authority, Revenue Bonds, 5.00%, 2/1/2008	AA/Aa3		$	1,127,130
	334,890	2	Birmingham, AL, Fire Equipment Lease Obligation No. 1, 5.60%, 11/5/2004	NR			349,156
	2,865,000		DCH Health Care Authority, Health Care Facilities Revenue Bonds, 4.00%, 6/1/2007	A+/A1			3,024,924
	405,000		Huntsville, AL, Health Care Authority, Revenue Bonds, 5.25% (Huntsville Hospital System), 6/1/2005	NR/A2			429,665
	945,000		Huntsville, AL, Health Care Authority, Revenue Bonds, 5.25% (Huntsville Hospital System), 6/1/2006	NR/A2			1,024,720
	1,500,000		Mobile, AL, IDB, (1994 Series A), 2.70% TOBs (International Paper Co.), Optional Tender 6/1/2003	BBB/Baa2			1,502,310
			TOTAL				7,457,905
			Alaska--1.5%
	4,000,000		Valdez, AK, Marine Terminal, (1994 Series B), 2.00% TOBs (Phillips Transportation Alaska, Inc.)/ (ConocoPhillips GTD), Optional Tender 1/1/2004	A-/A3			4,013,760
			Arizona--4.1%
	2,000,000		Maricopa County, AZ, IDA, 1.30% CP (American Water Capital Corp.), Mandatory Tender 9/2/2003	BBB+/Baa1			2,000,000
	3,000,000		Maricopa County, AZ, Pollution Control Corp., (Series 1994D), 1.75% TOBs (Arizona Public Service Co.), Optional Tender 4/5/2004	A-/A3			3,001,830
	2,500,000		Salt River Project, AZ, Agricultural Improvement & Power District, Electric System Refunding Revenue Bonds, (Series 2001A), 5.00%, 1/1/2004	AA/Aa2			2,558,050
	1,000,000		Salt River Project, AZ, Agricultural Improvement & Power District, Electric System Refunding Revenue Bonds, (Series 2002D), 5.00%, 1/1/2007	AA/Aa2			1,110,450
	1,000,000		Yavapai, AZ, IDA, Solid Waste Disposal Revenue Bonds, 3.65% TOBs (Waste Management, Inc.), Mandatory Tender 3/1/2006	BBB/Baa3			1,014,630
	1,000,000		Yavapai, AZ, IDA, Solid Waste Disposal Revenue Bonds, 4.45% TOBs (Waste Management, Inc.), Mandatory Tender 3/1/2008	BBB/Baa3			1,026,220
			TOTAL				10,711,180
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Arkansas--1.4%
$	500,000		Arkansas Development Finance Authority, Exempt Facilities Revenue Bonds, 3.50% TOBs (Waste Management, Inc.), Mandatory Tender 8/1/2003	BBB/NR		$	500,810
	1,475,000		Pulaski County, AR, Hospital Refunding Revenue Bonds, (Series 2002B), 4.25% (Arkansas Children's Hospital), 3/1/2006	A/A2			1,554,488
	1,530,000		Pulaski County, AR, Hospital Refunding Revenue Bonds, (Series 2002B), 4.50% (Arkansas Children's Hospital), 3/1/2007	A/A2			1,627,660
			TOTAL				3,682,958
			California--3.2%
	1,500,000		California State Department of Water Resources Power Supply Program, Power Supply Revenue Bonds, (Insured Series), 5.25% (MBIA INS), 5/1/2007	AAA/Aaa			1,691,205
	1,000,000		California State Department of Water Resources Power Supply Program, Power Supply Revenue Bonds, (Series A), 5.50%, 5/1/2005	BBB+/A3			1,072,470
	2,000,000		California State, Refunding UT GO Bonds, 5.00%, 2/1/2008	A/A2			2,211,380
	1,000,000		California Statewide Communities Development Authority, Solid Waste Facilities Disposal Revenue Bonds, 4.95% TOBs (Waste Management, Inc.), Mandatory Tender 4/1/2004	BBB/NR			1,019,780
	200,000		Delta Counties, CA, Home Mortgage Finance Authority, Single Family Mortgage Revenue Bonds, (Series 1998A), 4.85% (GNMA Collateralized Home Mortgage Program COL)/(MBIA INS), 12/1/2008	AAA//Aaa			202,960
	1,250,000		Santa Clara County, CA, Financing Authority, Special Obligation Bonds, (Series 2003), 4.00% (Measure B Transportation Improvement Program), 8/1/2005	NR/A2			1,313,200
	1,000,000		Santa Clara County, CA, Financing Authority, Special Obligation Bonds, (Series 2003), 4.00% (Measure B Transportation Improvement Program), 8/1/2006	NR/A2			1,064,530
			TOTAL				8,575,525
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Colorado--2.5%
$	125,000		Colorado HFA, Single Family Mortgage Revenue Bond, (Series C-1), 7.65%, 12/1/2025	NR/Aa2		$	129,235
	515,000		Colorado HFA, Single Family Program Senior Bonds, (Series 1998C-1), 4.70%, 5/1/2020	NR/Aa2			527,633
	1,000,000		Colorado Health Facilities Authority, Revenue Bonds, 4.00% (Catholic Health Initiatives), 9/1/2004	AA/Aa2			1,029,640
	2,000,000		Countrydale, CO, Metropolitan District, LT GO Refunding Bonds, 3.50% TOBs (Compass Bank, Birmingham LOC), Mandatory Tender 12/1/2007	NR/A1			2,059,020
	215,000		Denver, CO, Health & Hospital Authority, Healthcare Revenue Bonds, (Series 2001A), 5.00%, 12/1/2004	BBB+/Baa2			222,099
	305,000		Denver, CO, Health & Hospital Authority, Healthcare Revenue Bonds, (Series 2001A), 5.25%, 12/1/2005	BBB+/Baa2			324,462
	140,000		Denver, CO, Health & Hospital Authority, Healthcare Revenue Bonds, (Series 2001A), 5.25%, 12/1/2006	BBB+/Baa2			151,515
	200,000		Denver, CO, Health & Hospital Authority, Healthcare Revenue Bonds, (Series 2001A), 5.25%, 12/1/2007	BBB+/Baa2			217,354
	1,865,000		Dove Valley Metropolitan District, CO, Refunding UT GO Bonds, 3.30% TOBs (BNP Paribas SA LOC), Mandatory Tender 11/1/2005	AA-/NR			1,931,021
			TOTAL				6,591,979
			Delaware--1.7%
	4,000,000		Delaware State, UT GO Bonds, (Series 2002A), 5.00%, 7/1/2006	AAA/Aaa			4,437,880
			Florida--4.9%
	1,065,000		Escambia County, FL, Health Facilities Authority, Revenue Bonds, (Series 2003A), 5.00% (Ascension Health Credit Group), 11/15/2008	AA/Aa2			1,193,695
	4,420,000		Florida State Board of Education Lottery, Revenue Bonds, (Series A), 5.50% (FGIC INS), 7/1/2004	AAA/Aaa			4,633,044
	1,455,000		Highlands County, FL, Health Facilities Authority, Hospital Revenue Bonds, (Series 2002B), 3.50% (Adventist Health System), 11/15/2004	A/A3			1,492,772
	1,000,000		Lee County, FL, School Board, Refunding Certificate of Participation (Series 1996A), 4.60% (FSA INS)/ (Original Issue Yield: 4.65%), 8/1/2004	AAA/Aaa			1,041,160
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Florida--continued
$	500,000		Miami Beach, FL, Health Facilities Authority, Hospital Revenue Bonds, (Series 2001B), 5.50% TOBs (Mt. Sinai Medical Center, FL), Mandatory Tender 5/15/2005	BB/Ba3		$	484,535
	2,000,000		Miami-Dade County, FL, Capital Asset Acquisition Special Obligation Bonds, (Series 2002A), 5.00% (AMBAC INS), 4/1/2008	AAA/Aaa			2,263,860
	1,680,000		Palm Beach County, FL, Health Facilities Authority, Hospital Refunding Revenue Bonds, (Series 2001), 5.00% (BRCH Corporation Obligated Group), 12/1/2005	A/NR			1,803,077
			TOTAL				12,912,143
			Georgia--1.6%
	1,300,000		Atlanta, GA, UT GO Bonds, 4.50% (MBIA INS), 12/1/2004	AAA/Aaa			1,365,533
	1,640,000		Decatur County-Bainbridge, GA IDA, Revenue Bonds, 4.00% TOBs (John B. Sanifilippo & Son)/(Lasalle Bank, N.A. LOC), Mandatory Tender 6/1/2006	A+/NR			1,641,804
	1,000,000		Municipal Electric Authority of Georgia, Combustion Turbine Project Revenue Bonds, (Series 2002A), 5.00% (MBIA INS), 11/1/2008	AAA/Aaa			1,142,570
			TOTAL				4,149,907
			Hawaii--0.2%
	525,000		Hawaii State Department of Budget & Finance, Special Purpose Revenue Bonds, 4.65% (G.N. Wilcox Memorial Hospital), 7/1/2003	BBB+/Baa1			526,207
			Idaho--1.2%
	2,000,000		Boise City, ID, Housing Authority, Multifamily Housing Revenue Bonds, (Series 2002A), 3.25% TOBs (Civic Plaza Housing Project)/(Key Bank, N.A. LOC) 3/27/2006	NR/A1			2,046,740
	225,000		Idaho Health Facilities Authority, Hospital Revenue Bonds, (Series 1998), 4.70% (Idaho Elks Rehabilitation Hospital)/(Original Issue Yield: 4.75%), 7/15/2004	BBB/NR			230,945
	910,000		Idaho Housing Agency, SFM Bonds, (Series B-2), 4.65%, 7/1/2028	NR/Aaa			913,294
			TOTAL				3,190,979
			Illinois--4.3%
	1,730,000		Broadview, IL, Tax Increment Financing Revenue Bonds, 4.60%, 7/1/2004	NR			1,778,648
	275,000		Chicago, IL, Collateralized SFM Revenue Bonds, (Series 1997B), 5.10% (GNMA Collateralized Home Mortgage Program COL), 9/1/2007	NR/Aaa			280,981
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Illinois--continued
$	1,000,000		Chicago, IL, Transit Authority, Capital Grant Receipts Revenue Bonds, (Series B), 4.25% (AMBAC INS), 6/1/2008	AAA/Aaa		$	1,050,060
	475,000	2	Illinois Development Finance Authority, IDB, (Series 1995) Revenue Bonds, 5.80% (Catholic Charities Housing Development Corp.), 1/1/2007	NR			475,808
	235,000		Illinois Development Finance Authority, IDB, Mortgage Revenue Refunding Bonds, (Series 1997A), 5.20% (MBIA INS)/(FHA LOC), 7/1/2008	NR/Aaa			252,540
	1,000,000		Illinois Development Finance Authority, PCR, (Illinois Power Co.), (Series A), 4/1/2032 (MBIA INS)	AAA/Aaa			1,000,000
	2,000,000		Illinois Development Finance Authority, PCR, (Illinois Power Co.), (Series B), 4/1/2032 (MBIA INS)	AAA/Aaa			2,000,000
	2,000,000		Illinois Health Facilities Authority, Revenue Bonds, 5.25% (Advocate Health Care Network)/ (Original Issue Yield: 5.33%), 11/15/2006	AA/Aa3			2,210,480
	2,000,000		Illinois State, UT GO Bonds (First Series of July 2002), 5.00% (MBIA INS), 7/1/2007	AAA/Aaa			2,243,040
			TOTAL				11,291,557
			Indiana--1.6%
	1,000,000		Indiana Development Finance Authority, Refunding Revenue Bonds, (Series 1998A), 4.75% TOBs (Southern Indiana Gas & Electric Co.), Mandatory Tender 3/1/2006	BBB+/Baa1			1,043,900
	500,000		Indiana Development Finance Authority, Solid Waste Disposal Revenue Bonds, 3.45% TOBs (Waste Management, Inc.), Mandatory Tender 10/1/2003	BBB/NR			501,490
	1,260,000		Indiana Health Facility Financing Authority, Health System Revenue Bonds, (Series 2001), 5.00% (Sisters of St. Francis Health Services, Inc.), 11/1/2005	NR/Aa3			1,353,933
	725,000		Indiana Health Facility Financing Authority, Hospital Revenue Bonds, (Series 2001A), 5.50% (Community Foundation of Northwest Indiana), 8/1/2005	BBB-/NR			749,490
	575,000		Indiana Health Facility Financing Authority, Hospital Revenue Refunding Bonds, 4.50% (Floyd Memorial Hospital, IN)/(Original Issue Yield: 4.53%), 2/15/2005	A/NR			590,709
			TOTAL				4,239,522
			Iowa--0.7%
	1,815,000		Iowa Finance Authority, Iowa State Revolving Fund, (Series 2001A), 4.75%, 2/1/2005	AAA/Aaa			1,923,083
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Kansas--2.8%
$	1,000,000		Burlington, KS, Refunding Revenue Bonds, (Series 1998B), 4.75% TOBs (Kansas City Power And Light Co.), Mandatory Tender 10/1/2007	BBB/A2		$	1,063,330
	1,000,000		Burlington, KS, Refunding Revenue Bonds, (Series 1998C), 4.50% TOBs (Kansas City Power And Light Co.), Mandatory Tender 9/1/2003	BBB/A2			1,005,870
	2,465,000		Johnson County, KS, Unified School District No. 233, Refunding UT GO Bonds, 5.00% (FGIC INS), 3/1/2005	AAA/Aaa			2,628,356
	1,155,000		Kansas Development Finance Authority, Revenue Bonds, 5.50% (Sisters of Charity, Leavenworth)/ (MBIA INS), 12/1/2005	AAA/Aaa			1,269,206
	1,000,000		La Cygne, KS, Environmental Improvement Revenue Refunding Bonds Series 1994, 3.90% TOBs (Kansas City Power And Light Co.), Mandatory Tender 9/1/2004	BBB/A1			1,019,370
	370,000		Newton, KS, Hospital Revenue Refunding Bonds, (Series 1998), 4.80% (Newton Healthcare Corp.)/(Original Issue Yield: 4.90%), 11/15/2003	BBB-/NR			373,974
	80,000		Sedgwick & Shawnee Counties, KS, SFM Revenue Bonds, Mortgage-Backed Securities Program, (Series 1998 A-1), 5.00% (GNMA Collateralized Home Mortgage Program COL), 6/1/2013	NR/Aaa			84,736
			TOTAL				7,444,842
			Kentucky--0.3%
	875,000		Kentucky Economic Development Finance Authority, Revenue Bonds, 4.00% (Catholic Health Initiatives), 9/1/2004	AA/Aa2			902,816
			Louisiana--2.8%
	1,000,000		Calcasieu Parish, LA, IDB, PCR Refunding Bonds, (Series 2001), 4.80% (Occidental Petroleum Corp.), 12/1/2006	BBB+/Baa2			1,082,020
	1,000,000		Louisiana State Correctional Facilities Corp., Refunding Lease Revenue Bonds, 5.00% (Radian Asset Assurance INS), 12/15/2004	AA/NR			1,050,150
	2,000,000		Louisiana State Offshore Terminal Authority, Deep Water Port Refunding Revenue Bonds, (Series 2003D), 4.00% TOBs (Loop LLC), Mandatory Tender 9/1/2008	A/A3			2,099,040
	1,000,000		St. Charles Parish, LA, PCR Refunding Bonds, (Series 1999-C), 5.35% TOBs (Entergy Louisiana, Inc.), Mandatory Tender 10/1/2003	BBB-/Baa3			1,009,190
	2,000,000		St. Charles Parish, LA, PCR Refunding Bonds, (Series 1999A), 4.90% TOBs (Entergy Louisiana, Inc.), Mandatory Tender 6/1/2005	BBB-/Baa3			2,039,340
			TOTAL				7,279,740
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Maryland--0.3%
$	850,000		Prince Georges County, MD, IDRB, (Series 1993), 3.10% TOBs (International Paper Co.), Optional Tender 7/15/2003	BBB/Baa2		$	852,116
			Massachusetts--2.7%
	1,000,000		Commonwealth of Massachusetts, Construction Loan UT GO Bonds, (Series 2002D), 5.25%, 8/1/2007	AA-/Aa2			1,129,150
	2,000,000		Massachusetts HEFA, Revenue Bonds, (Series 1999A), 5.25% (Caritas Christi Obligated Group), 7/1/2004	BBB/Baa3			2,026,880
	1,115,000		Massachusetts HEFA, Revenue Bonds, (Series C), 5.00% (Milton Hospital), 7/1/2005	BBB+/NR			1,174,207
	1,090,000		Massachusetts Municipal Wholesale Electric Co., Power Supply Project Revenue Bonds, Nuclear Project 5-A, 5.00% (MBIA INS), 7/1/2004	AAA/Aaa			1,135,333
	1,000,000		Massachusetts Municipal Wholesale Electric Co., Power Supply Project Revenue Bonds, Stony Brook Intermediate Project, 5.00% (MBIA INS), 7/1/2004	AAA/Aaa			1,041,590
	500,000		Massachusetts Water Pollution Abatement Trust Pool, Pool Program Bonds, (Series 8), 5.00%, 8/1/2006	AAA/Aaa			554,090
			TOTAL				7,061,250
			Michigan--2.8%
	1,000,000		Detroit, MI, Capital Improvement LT, GO Bonds, (Series 2002A), 5.00% (MBIA INS), 4/1/2007	AAA/Aaa			1,115,910
	1,250,000		Michigan Public Power Agency, Belle River Project Refunding Revenue Bonds, (Series 2002A), 5.00% (MBIA INS), 1/1/2007	AAA/Aaa			1,387,138
	1,810,000		Michigan Public Power Agency, Belle River Project Refunding Revenue Bonds, (Series 2002A), 5.00%, 1/1/2005	AA/A1			1,916,681
	1,000,000		Michigan State Hospital Finance Authority, Hospital Refunding Revenue Bonds, (Series 2003A), 5.00% (Henry Ford Health System, MI), 3/1/2008	A-/A1			1,096,850
	250,000		Michigan State Hospital Finance Authority, Hospital Refunding Revenue Bonds, 5.00% (Sparrow Obligated Group, MI), 11/15/2003	A/A1			253,835
	500,000		Michigan State Hospital Finance Authority, Hospital Refunding Revenue Bonds, 5.00% (Sparrow Obligated Group, MI), 11/15/2004	A/A1			523,330
	1,000,000		Michigan Strategic Fund, Revenue Bonds, 4.20% TOBs (Waste Management, Inc.), Mandatory Tender 8/1/2004	BBB/NR			1,018,400
			TOTAL				7,312,144
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Minnesota--1.2%
$	1,500,000		Maplewood, MN, Health Care Facility Revenue Bonds, (Series 1996), 5.95% (Healtheast, MN), 11/15/2006	BB-/Ba2		$	1,469,325
	1,530,000		Minneapolis, MN, Health Care System, Revenue Bonds (Series 2002A), 5.00% (Allina Health System, MN), 11/15/2007	NR/A3			1,678,073
			TOTAL				3,147,398
			Missouri--3.7%
	960,000		Cape Girardeau County, MO, IDA, Health Care Facilities Revenue Bonds, (Series A), 5.00% (St. Francis Medical Center, MO), 6/1/2007	A/NR			1,047,734
	115,000		Kansas City, MO, IDA, PCR Bonds, 6.05% (General Motors Corp.), 4/1/2006	BBB/Baa1			115,105
	1,750,000		Missouri State Environmental Improvement & Energy Authority, (AmerenUE), (Series 1998 C), 9/1/2033	BBB+/A2			1,750,000
	4,000,000		Missouri State Environmental Improvement & Energy Authority, (AmerenUE), (Series 1998A), 9/1/2033	BBB+/A2			4,000,000
	1,000,000		Missouri State Environmental Improvement & Energy Authority, (AmerenUE), (Series 2000C), 3/1/2035	BBB+/A2			1,000,000
	1,000,000		Missouri State HEFA, Educational Facilities Revenue Bonds, (Series 1998B), 4.40% TOBs (Rockhurst High School)/(Allied Irish Banks PLC LOC), Optional Tender 6/1/2003	NR/Aa3			1,000,090
	440,000		West Plains, MO, IDA, Hospital Revenue Bonds, 4.85% (Ozarks Medical Center)/ (Original Issue Yield: 4.95%), 11/15/2003	BB+/NR			441,857
	425,000		West Plains, MO, IDA, Hospital Revenue Bonds, 5.05% (Ozarks Medical Center)/ (Original Issue Yield: 5.125%), 11/15/2005	BB+/NR			430,393
			TOTAL				9,785,179
			Nebraska--0.6%
	426,495	2,3	Energy America, NE, Gas Supply Revenue Bonds, (Series 1998B), 5.10% (Nebraska Public Gas Agency), 10/15/2005	NR			413,291
	1,000,000		Nebraska Public Power District, General Revenue Bonds, (Series 2002B), 4.00% (AMBAC INS), 1/1/2006	AAA/Aaa			1,065,410
			TOTAL				1,478,701
			Nevada--0.4%
	1,000,000		Clark County, NV, IDRBs, (Series 2003D), 3.35% TOBs (Southwest Gas Corp.), Mandatory Tender 9/1/2004	BBB-/Baa2			1,002,780
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			New Hampshire--0.8%
$	2,000,000		New Hampshire Business Finance Authority, PCR Refunding Bonds, 4.55% TOBs (United Illuminating Co.), Mandatory Tender 2/1/2004	NR/A3		$	2,024,440
			New York--9.3%
	1,000,000		Dutchess County, NY, IDA, Revenue Bonds, 2.80% (Marist College), 7/1/2006	NR/Baa1			1,022,160
	1,120,000		Dutchess County, NY, IDA, Revenue Bonds, 3.55% (Marist College), 7/1/2008	NR/Baa1			1,157,666
	1,110,000		Dutchess County, NY, IDA, Revenue Bonds, 4.00% (Marist College), 7/1/2009	NR/Baa1			1,160,294
	2,000,000		Long Island Power Authority, Electric System General Revenue Bonds, (Series 2003A), 3.00%, 6/1/2004	A-/Baa1			2,028,900
	1,750,000		Long Island Power Authority, Electric System General Revenue Bonds, (Series 2003A), 4.50%, 6/1/2005	A-/Baa1			1,841,052
	1,000,000		New York City, NY Transitional Finance Authority, Future Tax Secured Bonds, (Series 2003C), 5.00%, 8/1/2006	AA+/Aa2			1,106,120
	1,000,000		New York City, NY, UT GO Bonds, (Series 2001F), 5.00%, 8/1/2007	A/A2			1,100,370
	1,000,000		New York City, NY, UT GO Bonds, (Series D), 5.00%, 8/1/2006	A/A2			1,090,310
	1,000,000		New York City, NY, UT GO Bonds, (Series E), 5.00%, 8/1/2007	A/A2			1,100,370
	1,000,000		New York City, NY, UT GO Bonds, (Series F), 5.00%, 8/1/2008	A/A2			1,104,140
	1,620,000		New York State Dormitory Authority, Revenue Bonds, (Series 2003), 4.00% (Kateri Residence)/(Allied Irish Banks PLC LOC), 7/1/2008	NR/Aa3			1,726,969
	5,000,000		New York State Dormitory Authority, Revenue Bonds, 5.25% (State University of New York), 5/15/2004	AA-/A3			5,192,900
	535,000		New York State Mortgage Agency, Homeowner Mortgage Revenue Bonds, (Series 71), 4.75%, 10/1/2021	NR/Aa1			577,393
	2,000,000		New York State Thruway Authority, Local Highway & Bridge Service Contract Revenue Bonds, (Series 2002), 5.00%, 4/1/2006	AA-/A3			2,195,080
	2,000,000		New York State Thruway Authority, Local Highway & Bridge Service Contract Revenue Bonds, (Series 2002), 5.00%, 4/1/2007	AA-/A3			2,229,460
			TOTAL				24,633,184
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			North Carolina--1.4%
$	1,500,000		North Carolina Eastern Municipal Power Agency, Revenue Refunding Bonds, (Series C), 5.25% (Original Issue Yield: 5.40%), 1/1/2004	BBB/Baa3		$	1,530,810
	460,000		North Carolina HFA, SFM Revenue Bonds, (Series 1997TT), 4.90%, 9/1/2024	AA/Aa2			461,734
	1,500,000		North Carolina State, UT GO Bonds, (Series 1997A), 5.20% (Original Issue Yield: 5.35%), 3/1/2013	AAA/Aa1			1,714,170
			TOTAL				3,706,714
			North Dakota--0.3%
	435,000		North Dakota State HFA, Housing Finance Program Bonds, (Series 1997C), 4.70%, 1/1/2022	NR/Aa2			436,727
	405,000		North Dakota State HFA, Housing Finance Program Bonds, (Series 1998A), 4.60%, 1/1/2023	NR/Aa2			412,310
			TOTAL				849,037
			Ohio--5.4%
	315,000		Franklin County, OH, Health Care Facilities, Revenue Refunding Bonds, 4.80% (Ohio Presbyterian Retirement Services)/(Original Issue Yield: 4.90%), 7/1/2003	BBB/NR			315,617
	460,000		Franklin County, OH, Health Care Facilities, Revenue Refunding Bonds, 5.00% (Ohio Presbyterian Retirement Services), 7/1/2004	BBB/NR			470,865
	3,000,000		Hamilton County, OH, Local Cooling Facilities Revenue Bonds, (Series 1998), 4.90% TOBs (Trigen-Cinergy Solutions of Cincinnati LLC)/(Cinergy Corp. GTD), Mandatory Tender 6/1/2004	BBB/Baa2			3,043,710
	125,000		Ohio Enterprise Bond Fund, (Series 1995-3) State Economic Development Revenue Bonds, 5.60% (Smith Steelite), 12/1/2003	A-/NR			127,459
	650,000		Ohio HFA, Residential Mortgage Revenue Bonds, (Series 1998A-1), 4.90% (GNMA Collateralized Home Mortgage Program COL), 9/1/2025	AAA/Aaa			677,833
	1,000,000		Ohio State Air Quality Development Authority, Refunding Revenue Bonds, (Series 2002A), 3.85% TOBs (Pennsylvania Power Co.), Mandatory Tender 7/1/2003	BBB-/Baa2			1,000,950
	2,000,000		Ohio State Revenue, Major New State Infrastructure Revenue Bonds, 5.00%, 6/15/2006	AA/Aa3			2,209,180
	1,000,000		Ohio State Water Development Authority Pollution Control Facilities, Refunding Revenue Bonds, (Series 1999B), 4.50% TOBs (Toledo Edison Co.), Mandatory Tender 9/1/2005	BBB-/Baa3			1,000,020
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Ohio--continued
$	1,000,000		Ohio State Water Development Authority Pollution Control Facilities, Refunding Revenue Bonds, (Series B), 4.40% TOBs (Ohio Edison Co.), Mandatory Tender 12/1/2003	BBB-/Baa2		$	1,008,480
	2,000,000		Ohio State Water Development Authority, Refunding Facility PCR Bonds, 2.25% TOBs (Ohio Edison Co.), Mandatory Tender 6/2/2005	BBB/Baa1			2,000,060
	2,000,000		Ohio State, Higher Education Capital Facilities UT GO Bonds, (Series II-A), 5.00%, 12/1/2008	AA/Aa2			2,291,540
			TOTAL				14,145,714
			Oklahoma--0.8%
	1,000,000		Tulsa, OK, International Airport, General Revenue Bonds, 5.00% (FGIC INS), 6/1/2003	AAA/Aaa			1,000,110
	1,000,000		Tulsa, OK, International Airport, General Revenue Bonds, 5.00% (FGIC INS), 6/1/2004	AAA/Aaa			1,035,730
			TOTAL				2,035,840
			Oregon--0.7%
	1,000,000		Clackamas County, OR, Hospital Facilities Authority, Revenue Refunding Bonds, (Series 2001), 5.00% (Legacy Health System), 5/1/2006	AA/Aa3			1,085,890
	750,000		Port of Portland, OR, 3.00% TOBs (Union Pacific Railroad Co.)/(Union Pacific Corp. GTD), Optional Tender 12/1/2003	BBB/NR			751,155
			TOTAL				1,837,045
			Pennsylvania--5.6%
	1,345,000		Allegheny County, PA, HDA, Revenue Bonds, (Series 2003B), 5.50% (UPMC Health System), 6/15/2007	A/NR			1,496,285
	1,020,000		Commonwealth of Pennsylvania, UT GO Bonds, 5.25%, 10/15/2006	AA/Aa2			1,145,011
	1,420,000		Erie County, PA, UT GO Bonds, 5.25% (AMBAC INS), 9/1/2004	AAA/Aaa			1,493,968
	830,000		Grove City Area Hospital Authority, Hospital Revenue Bonds, (Series 1998), 4.50% (United Community Hospital)/(Original Issue Yield: 4.60%), 7/1/2003	BBB/NR			830,506
	1,000,000		Montgomery County, PA, IDA, PCR Refunding Bonds, (Series 1999A), 5.20% TOBs (Peco Energy Co.), Mandatory Tender 10/1/2004	BBB+/A3			1,038,800
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Pennsylvania--continued
$	2,000,000		Montgomery County, PA, IDA, PCR Refunding Bonds, (Series 1999B), 5.30% TOBs (Peco Energy Co.), Mandatory Tender 10/1/2004	BBB+/A3		$	2,074,980
	315,000		Pennsylvania EDFA, Exempt Facilities Revenue Bonds, (Series 2001A), 6.00% (Amtrak), 11/1/2005	BBB-/A3			320,286
	1,200,000		Pennsylvania EDFA, Resource Recovery Refunding Revenue Bonds, (Series B), 6.75% (Northampton Generating), 1/1/2007	BBB-/NR			1,236,864
	1,005,000		Pennsylvania State Higher Education Facilities Authority, Revenue Bonds, (Series 2001A), 5.75% (UPMC Health System), 1/15/2008	A/NR			1,121,781
	1,000,000		Pennsylvania State, Refunding UT GO Bonds, 5.125% (AMBAC INS)/(Original Issue Yield: 5.35%), 9/15/2011	AAA/Aaa			1,112,250
	435,000		Philadelphia, PA, Authority for Industrial Development, Revenue Bonds, 4.55% (Franklin Institute), 6/15/2003	NR/Baa2			435,570
	785,000		Sayre, PA, Health Care Facilities Authority, Revenue Bonds, (Series 2002A), 4.50% (Guthrie Healthcare System, PA), 12/1/2003	A-/NR			796,320
	1,400,000		Sayre, PA, Health Care Facilities Authority, Revenue Bonds, (Series 2002A), 5.50% (Guthrie Healthcare System, PA), 12/1/2004	A-/NR			1,472,142
	320,000		Scranton-Lackawanna, PA, Health & Welfare Authority, Revenue Bonds, 7.125% (Allied Services Rehabilitation Hospitals, PA), 7/15/2005	BB+			328,672
			TOTAL				14,903,435
			Rhode Island--1.3%
	2,000,000		Johnston, RI, (2002 Series), 3.00% BANs, 6/19/2003	NR/Baa3			2,001,460
	400,000		Rhode Island State Health and Educational Building Corp., Hospital Financing Revenue Bonds, (Series 2002), 5.00% (Lifespan Obligated Group), 8/15/2005	BBB/Baa2			419,472
	500,000		Rhode Island State Health and Educational Building Corp., Hospital Financing Revenue Bonds, (Series 2002), 5.25% (Lifespan Obligated Group), 8/15/2006	BBB/Baa2			534,110
	510,000		Rhode Island State Health and Educational Building Corp., Hospital Financing Revenue Bonds, (Series 2002), 5.50% (Lifespan Obligated Group), 8/15/2007	BBB/Baa2			551,907
			TOTAL				3,506,949
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			South Carolina--1.6%
$	2,000,000		Piedmont Municipal Power Agency, SC, Refunding Electric Revenue Bonds, (Series 2002A), 5.00% (FGIC INS), 1/1/2005	AAA/Aaa		$	2,115,620
	1,000,000		Richland County, SC, Environmental Improvement Revenue Refunding Bonds, (Series 2002A), 4.25% (International Paper Co.), 10/1/2007	BBB/Baa2			1,040,020
	1,000,000		South Carolina Jobs-EDA, Hospital Facilities Revenue Bonds, (Series 2000A), 7.00% (Palmetto Health Alliance), 12/15/2004	BBB/Baa2			1,045,440
			TOTAL				4,201,080
			South Dakota--0.5%
	1,255,000		South Dakota State Health & Educational Authority, Revenue Bonds, 4.50% (Avera Health)/ (AMBAC INS), 7/1/2005	AAA/Aaa			1,332,421
			Tennessee--1.7%
	400,000		Clarksville, TN, Natural Gas Acquisition Corp., Gas Refunding Revenue Bonds, 5.00% (Dominion Resources, Inc.), 11/1/2003	BBB+/NR			405,148
	640,000		Knox County, TN, Health Education & Housing Facilities Board, Refunding Improvement Revenue Bonds, (Series 2003A), 4.00% (East Tennessee Children's Hospital), 7/1/2006	BBB+/Baa1			671,738
	915,000		Montgomery County, TN, HEFA Board, Hospital Revenue Refunding Bonds, 4.55% (Clarksville Regional Hospital)/(Original Issue Yield: 4.65%), 1/1/2004	BBB/Baa2			927,252
	730,000		Montgomery County, TN, HEFA Board, Hospital Revenue Refunding Bonds, 4.65% (Clarksville Regional Hospital)/(Original Issue Yield: 4.75%), 1/1/2005	BBB/Baa2			756,842
	1,605,000		Sullivan County, TN, Health Educational & Housing Facilities Board, Hospital Refunding Revenue Bonds, 4.50% (Wellmont Health System), 9/1/2006	BBB+/NR			1,691,510
			TOTAL				4,452,490
			Texas--9.7%
	3,000,000		Austin, TX, Water and Wastewater System, Refunding Revenue Bonds, (Series 2002A), 5.25% (AMBAC INS), 11/15/2007	AAA/Aaa			3,420,060
	2,000,000		Brazos River Authority, TX, Refunding Revenue Bonds, (Series A), 4.95% TOBs (TXU Energy), Mandatory Tender 4/1/2004	BBB/Baa2			2,035,540
	1,000,000		Gulf Coast, TX, Waste Disposal Authority, Environmental Facilities Refunding Revenue Bonds, 4.20% (Occidental Petroleum Corp.), 11/1/2006	BBB+/Baa2			1,053,120
	2,380,000		Gulf Coast, TX, Waste Disposal Authority, Revenue Bonds, (Series 2002), 5.00% (Bayport Area System)/ (AMBAC INS), 10/1/2008	AAA/Aaa			2,710,511
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Texas--continued
$	3,000,000		Matagorda County, TX, Navigation District Number One, PCR Refunding Bonds, (Series 1999A), 3.75% TOBs (Central Power & Light Co.), Mandatory Tender 11/1/2003	BBB/Baa2		$	3,004,230
	750,000		Sabine River Authority, TX, PCR Revenue Refunding Bonds, (Series 2001C), 4.00% TOBs (TXU Energy), Mandatory Tender 11/1/2003	BBB/Baa2			752,640
	2,000,000		San Antonio, TX, Electric & Gas System, Refunding Revenue Bonds, 5.00%, 2/1/2004	AA+/Aa1			2,052,980
	1,585,000		Texas State Public Finance Authority, Refunding UT GO Bonds, (Series 2001A), 5.00% (Texas State), 10/1/2006	AA/Aa1			1,764,549
	1,675,000		Texas State Public Finance Authority, Revenue Financing System Bonds, (Series 2002), 4.50% (Texas Southern University)/(MBIA INS), 11/1/2005	NR/Aaa			1,804,360
	2,000,000		Texas Turnpike Authority, Second Tier Bond Anticipation Notes (Series 2002), 5.00%, 6/1/2008	AA/Aa3			2,260,680
	1,500,000		Texas Water Development Board, State Revolving Fund Revenue Bonds, (Series B), 5.50%, 7/15/2007	AAA/Aaa			1,715,160
	2,740,000		University of Texas, Financing System Revenue Bonds, (Series 2001B), 5.00%, 8/15/2007	AAA/Aaa			3,084,281
			TOTAL				25,658,111
			Utah--0.7%
	735,000		Intermountain Power Agency, UT, Power Supply Revenue Refunding Bonds, (Series B) 6.00% (MBIA LOC), 7/1/2006	AAA/Aaa			834,254
	1,000,000		Utah Associated Municipal Power Systems, Revenue Bonds, (Series 2003A), 5.00% (Payson Power Project)/(Financial Security Assurance, Inc. INS), 4/1/2009	AAA/Aaa			1,137,850
			TOTAL				1,972,104
			Virginia--1.2%
	1,000,000		Chesterfield County, VA, IDA, PCR Bonds, 4.95% (Virginia Electric & Power Co.), 12/1/2007	BBB+/A3			1,049,490
	1,000,000		Louisa, VA, IDA, Solid Waste & Sewage Disposal Revenue Bonds, (Series 2000A), 1.85% TOBs (Virginia Electric & Power Co.), Mandatory Tender 4/1/2004	BBB+/A3			999,580
	1,000,000		Louisa, VA, IDA, Solid Waste & Sewer Disposal Revenue Bonds, (Series 2001 A), 3.40% TOBs (Virginia Electric & Power Co.), Mandatory Tender 3/1/2004	NR/A3			1,011,140
			TOTAL				3,060,210
Principal Amount				Credit Rating	1		Value
			LONG-TERM MUNICIPALS--continued
			Washington--2.0%
$	2,035,000		Washington State, Refunding UT GO Bonds, (Series R-2000A), 5.00%, 1/1/2005	AA+/Aa1		$	2,156,286
	2,000,000		Washington State, Refunding UT GO Bonds, 5.25%, 9/1/2005	AA+/Aa1			2,176,700
	1,000,000		Washington State, Various Purpose Refunding UT GO Bonds, (Series R-2003A), 3.50% (MBIA INS), 1/1/2007	AAA/Aaa			1,056,810
			TOTAL				5,389,796
			Wisconsin--1.3%
	1,030,000		Green Bay, WI, Area Public School District, Refunding UT GO Bonds, 5.10%, 4/1/2007	NR/Aa2			1,121,897
	965,000		Pleasant Prairie, WI, Water & Sewer System, Bond Anticipation Notes, 4.00%, 10/1/2007	NR/A3			1,016,888
	1,245,000		Wisconsin State HEFA, Refunding Revenue Bonds, 5.00% (Wheaton Franciscan Services), 8/15/2005	A/A2			1,328,266
			TOTAL				3,467,051
			Wyoming--1.5%
	1,500,000		Albany County, WY, PCR Bonds, (Series 1985), 3.00% TOBs (Union Pacific Railroad Co.)/(Union Pacific Corp. GTD), Optional Tender 12/1/2003	BBB/NR			1,502,310
	2,500,000		Lincoln County, WY, PCR Refunding Bonds, (Series 1991), 3.40% TOBs (Pacificorp), Mandatory Tender 6/1/2010	A/A3			2,505,725
			TOTAL				4,008,035
			TOTAL LONG-TERM MUNICIPALS (IDENTIFIED COST $245,267,352)				251,155,207
			SHORT-TERM MUNICIPALS--5.2%
			Arizona--0.9%
	1,150,000		Prescott, AZ, IDA, (Series A) Weekly VRDNs (Prescott Convention Center, Inc.)/ (Household Finance Corp. GTD)	A-1/NR			1,150,000
	1,150,000		Prescott, AZ, IDA, (Series B) Weekly VRDNs (Prescott Convention Center, Inc.)/ (Household Finance Corp. GTD)	A-1/NR			1,150,000
			TOTAL				2,300,000
			Idaho--1.9%
	5,000,000		Boise City, ID, Industrial Development Corp., Multi-Mode Variable Rate Industrial Development Revenue Bonds, (Series 1998) Weekly VRDNs (Multiquip Inc.)/ (Bank of Tokyo-Mitsubishi Ltd. LOC)	A-2/NR			5,000,000
Principal Amount				Credit Rating	1		Value
			SHORT-TERM MUNICIPALS--continued
			Illinois--0.4%
$	1,000,000		Chicago, IL, Gas Supply Revenue (Series B), 1.40% TOBs (Peoples Gas Light & Coke Co.), Mandatory Tender 6/26/2003	A-2/VMIG1		$	1,000,000
			Tennessee--1.1%
	3,000,000		Carter County, TN, IDB, (Series 1983) Weekly VRDNs (Inland Container Corp.)/(Temple-Inland, Inc. GTD)	A-2/NR			3,000,000
			Utah--0.9%
	2,500,000		Emery County, UT, (Series 1994) Daily VRDNs (Pacificorp)/(AMBAC INS)/ (Bank of Nova Scotia, Toronto LIQ)	A-1+//VMIG1			2,500,000
			TOTAL SHORT-TERM MUNICIPALS (AT AMORTIZED COST)				13,800,000
			TOTAL INVESTMENTS--100.3% (IDENTIFIED COST $259,067,352)4				264,955,207
			OTHER ASSETS AND LIABILITIES -- NET--(0.3)%				(729,373)
			TOTAL NET ASSETS--100%			$	264,225,834

Securities that are subject to the AMT represent 15.6% of the portfolio as calculated based upon total portfolio market value.

1 Please refer to the Appendix of the Statement of Additional Information for an explanation of the credit ratings. Current credit ratings are unaudited.

2 Denotes a restricted security which is subject to restrictions on resale under federal securities laws. At May 31, 2003, these securities amounted to $1,238,255 which represents 0.5% of net assets. Included in these amounts are restricted securities which have been deemed liquid amounting to $413,291 and representing 0.2% of net assets.

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

4 The cost of investments for federal tax purposes amounts to $259,067,194.

Note: The categories of investments are shown as a percentage of total net assets at May 31, 2003.

The following acronyms are used throughout this portfolio:

AMBAC	- --American Municipal Bond Assurance Corporation
BANs	- --Bond Anticipation Notes
COL	- --Collateralized
CP	- --Commercial Paper
EDA	- --Economic Development Authority
EDFA	- --Economic Development Financing Authority
FGIC	- --Financial Guaranty Insurance Company
FHA	- --Federal Housing Administration
FSA	- --Financial Security Assurance
GNMA	- --Government National Mortgage Association
GO	- --General Obligation
GTD	- --Guaranteed
HDA	- --Hospital Development Authority
HEFA	- --Health and Education Facilities Authority
HFA	- --Housing Finance Authority
IDA	- --Industrial Development Authority
IDB	- --Industrial Development Bond
IDRB(s)	- --Industrial Development Revenue Bond(s)
INS	- --Insured
LIQ	- --Liquidity Agreement
LOC	- --Letter of Credit
LT	- --Limited Tax
MBIA	- --Municipal Bond Investors Assurance
PCR	- --Pollution Control Revenue
SFM	- --Single Family Mortgage
TOBs	- --Tender Option Bonds
UT	- --Unlimited Tax
VRDNs	- --Variable Rate Demand Notes

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

May 31, 2003 (unaudited)

Assets:
Total investments in securities, at value (identified cost $259,067,352)			$	264,955,207
Cash				55,105
Income receivable				3,162,712
Receivable for investments sold				1,165,000
Receivable for shares sold				3,312,098
TOTAL ASSETS				272,650,122
Liabilities:
Payable for investments purchased	$	6,672,856
Payable for shares redeemed		1,485,076
Income distribution payable		147,182
Accrued expenses		119,174
TOTAL LIABILITIES				8,424,288
Net assets for 26,512,064 shares outstanding			$	264,225,834
Net Assets Consist of:
Paid in capital			$	262,324,992
Net unrealized appreciation of investments				5,887,855
Accumulated net realized loss on investments				(4,028,974	)
Undistributed net investment income				41,961
TOTAL NET ASSETS			$	264,225,834
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net asset value per share ($245,651,039 ÷ 24,648,271 shares outstanding)				$9.97
Offering price per share (100/99.00 of $9.97)1				$10.07
Redemption proceeds per share				$9.97
Class F Shares:
Net asset value per share ($18,574,795 ÷ 1,863,793 shares outstanding)				$9.97
Offering price per share				$9.97
Redemption proceeds per share (99.00/100 of $9.97)1				$9.87

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, 2003 (unaudited)

Investment Income:
Interest							$	4,133,452
Expenses:
Investment adviser fee				$	511,914
Administrative personnel and services fee					96,240
Custodian fees					5,967
Transfer and dividend disbursing agent fees and expenses					28,045
Directors'/Trustees' fees					2,280
Auditing fees					8,155
Legal fees					3,011
Portfolio accounting fees					47,812
Distribution services fee--Class A Shares					297,350
Distribution services fee--Class F Shares					13,557
Shareholder services fee--Class A Shares					297,350
Shareholder services fee--Class F Shares					22,595
Share registration costs					37,933
Printing and postage					17,730
Insurance premiums					890
Taxes					9,135
Miscellaneous					785
TOTAL EXPENSES					1,400,749
Waivers:
Waiver of investment adviser fee	$	(135,538	)
Waiver of distribution services fee--Class F Shares		(13,557	)
Waiver of transfer and dividend disbursing agent fees and expenses		(781	)
TOTAL WAIVERS					(149,876	)
Net expenses								1,250,873
Net investment income								2,882,579
Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments								(104,453	)
Net change in unrealized appreciation of investments								3,693,990
Net realized and unrealized gain on investments								3,589,537
Change in net assets resulting from operations							$	6,472,116

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

		Six Months Ended (unaudited) 5/31/2003			Year Ended 11/30/2002
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	2,882,579		$	4,840,351
Net realized loss on investments		(104,453	)		(380,132	)
Net change in unrealized appreciation/depreciation of investments		3,693,990			1,577,896
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		6,472,116			6,038,115
Distributions to Shareholders:
Distributions from net investment income
Class A Shares		(2,685,969	)		(4,322,564	)
Class F Shares		(226,917	)		(525,346	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(2,912,886	)		(4,847,910	)
Share Transactions:
Proceeds from sale of shares		114,307,938			257,745,916
Net asset value of shares issued to shareholders in payment of distributions declared		2,046,073			3,305,946
Cost of shares redeemed		(98,675,245	)		(187,122,627	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		17,678,766			73,929,235
Change in net assets		21,237,996			75,119,440
Net Assets:
Beginning of period		242,987,838			167,868,398
End of period (including undistributed net investment income of $41,961 and $72,268, respectively)	$	264,225,834		$	242,987,838

See Notes which are an integral part of the Financial Statements

Notes To Financial Statements

May 31, 2003 (unaudited)

ORGANIZATION

Federated Fixed Income Securities, 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 four portfolios. The financial statements included herein are only those of Federated Limited Term Municipal 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 two classes of shares: Class A and Class F Shares. The investment objective of the Fund is to provide a high level of current income which is exempt from federal regular income tax consistent with the preservation of principal.

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 ("GAAP").

Investment Valuation

Municipal bonds are valued by an independent pricing service, taking into consideration yield, liquidity, risk, credit quality, coupon, maturity, type of issue, and any other factors or market data the pricing service deems relevant. 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. Securities for which no quotations are readily available are valued at fair value as determined in good faith using methods approved by the Board of Directors (the "Directors").

Investment Income, Expenses and Distributions

Interest income and expenses are accrued daily. 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.

Premium and Discount Amortization

All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") and to distribute to shareholders each year substantially all of its income. Accordingly, no provision for federal tax is necessary.

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.

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 in good faith using methods approved by the Directors.

Additional information on each restricted illiquid security held at May 31, 2003 is as follows:

Security	Acquisition Date	Acquisition Cost
Birmingham, AL, Fire Equipment Lease Obligation No. 1, 5.60%, 11/5/2004	11/9/1999	$334,890
Illinois Development Finance Authority, IDB, (Series 1995) Revenue Bonds, 5.80% (Catholic Charities Housing Development Corp.), 1/1/2007	11/9/1995	$475,000

Use of Estimates

The preparation of financial statements in conformity with GAAP 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.

CHANGE IN ACCOUNTING POLICY

Effective December 1, 2001, the Fund has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies (the "Guide"). For financial statement purposes, the revised Guide requires the Fund to amortize premium and discount on all fixed income securities.

Upon initial adoption, the Fund adjusted its cost of fixed income securities by the cumulative amount of amortization that would have been recognized had amortization been in effect from the purchase date of each holding with a corresponding reclassification between unrealized appreciation/depreciation on investments and undistributed net investment income. Adoption of these accounting principles does not affect the Fund's net asset value or distributions but changes the classification of certain amounts between investment income and realized and unrealized gain/loss on the Statement of Operations. The cumulative effect to the Fund resulting from the adoption of premium and discount amortization is as follows:

	As of 12/1/2001		For the Year Ended 11/30/2002
	Cost of Investments	Undistributed Net Investment Income	Net Investment Income	Net Unrealized Appreciation (Depreciation)	Net Realized Loss
Increase (Decrease)	$1,032	$1,032	$173	$855	$(1,028)

The Statement of Changes in Net Assets and Financial Highlights for prior periods have not been restated to reflect this change in presentation.

CAPITAL STOCK

At May 31, 2003, par value shares ($0.001 per share) authorized were as follows:

Share Class Name	Shares of Par Value Capital Stock Authorized
Class A Shares	1,000,000,000
Class F Shares	1,000,000,000
TOTAL	2,000,000,000

Transactions in capital stock were as follows:

	Six Months Ended 5/31/2003					Year Ended 11/30/2002
Class A Shares:	Shares		Amount			Shares		Amount
Shares sold	11,309,997		$	112,084,857		25,172,187		$	246,646,176
Shares issued to shareholders in payment of distributions declared	193,352			1,918,723		311,338			3,050,635
Shares redeemed	(9,813,771	)		(97,225,239	)	(17,813,144	)		(174,063,397	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	1,689,578		$	16,778,341		7,670,381		$	75,633,414
	Six Months Ended 5/31/2003					Year Ended 11/30/2002
Class F Shares:	Shares		Amount			Shares		Amount
Shares sold	224,452		$	2,223,081		1,132,541		$	11,099,740
Shares issued to shareholders in payment of distributions declared	12,834			127,350		26,061			255,311
Shares redeemed	(146,078	)		(1,450,006	)	(1,331,893	)		(13,059,230	)
NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS	91,208		$	900,425		(173,291	)	$	(1,704,179	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	1,780,786		$	17,678,766		7,497,090		$	73,929,235

FEDERAL TAX INFORMATION

At May 31, 2003, the cost of investments for federal tax purposes was $259,067,194. The net unrealized appreciation of investments for federal tax purposes was $5,888,013. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $5,970,764 and net unrealized depreciation from investments for those securities having an excess of cost over value of $82,751.

At November 30, 2002, the Fund had a capital loss carryforward of $3,924,700 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Code, and thus will reduce the amount of 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	$  439,009
2007	$2,004,917
2008	$  938,717
2009	$  162,953
2010	$  379,104

OTHER TAXES

As an open-end management investment company incorporated in the state of Maryland but domiciled in Pennsylvania, the Fund is subject to the Pennsylvania Franchise Tax. This franchise tax is assessed annually on the value of the Fund, as represented by average net assets for the tax year.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, the Fund's investment adviser (the "Adviser"), receives for its services an annual investment adviser fee equal to 0.40% 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 0.150% 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 and Class F 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 F Shares	0.15%

FSC may voluntarily choose to waive any portion of its fee. FSC can modify or terminate this voluntary waiver at any time at its sole discretion.

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.

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. 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.

Interfund Transactions

During the six months ended May 31, 2003, the Fund engaged in purchase and sale transactions with funds that have a common investment adviser (or affiliated investment advisers), common Directors/Trustees, and/or common Officers. These purchase and sale transactions complied with Rule 17a-7 under the Act and amounted to $82,600,000 and $86,711,700, respectively.

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 long-term U.S. government securities and short-term obligations (and in-kind contributions), for the six months ended May 31, 2003, were as follows:

Purchases	$	48,888,043
Sales	$	24,384,241

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.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the householding program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of householding. Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of householding at any time by calling 1-800-341-7400.

Federated Investors
World-Class Investment Manager

Federated Limited Term Municipal Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 31417P304
Cusip 31417P403

Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.

G00278-01 (7/03)

Federated Investors
World-Class Investment Manager

Federated Strategic Income Fund

Established 1994

A Portfolio of Federated Fixed Income Securities, Inc.

9TH SEMI-ANNUAL SHAREHOLDER REPORT

May 31, 2003

FINANCIAL HIGHLIGHTS

FINANCIAL STATEMENTS

Financial Highlights -- Class A Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended November 30
	5/31/2003			2002			2001			2000			1999			1998
Net Asset Value, Beginning of Period	$7.57			$8.00			$8.10			$9.19			$9.79			$10.41
Income From Investment Operations:
Net investment income	0.30			0.69	1,2		0.81			0.84			0.87			0.83
Net realized and unrealized gain (loss) on investments and foreign currency transactions	0.88			(0.42	)1		(0.12	)		(1.12	)		(0.65	)		(0.54	)
TOTAL FROM INVESTMENT OPERATIONS	1.18			0.27			0.69			(0.28	)		0.22			0.29
Less Distributions:
Distributions from net investment income	(0.34	)		(0.70	)		(0.76	)		(0.81	)		(0.82	)		(0.81	)
Distributions in excess of net investment income3	--			--			--			--			--			(0.07	)
Distributions from paid in capital4	--			--			(0.03	)		--			--			--
Distributions from net realized gain on investments and foreign currency transactions	--			--			--			--			--			(0.03	)
TOTAL DISTRIBUTIONS	(0.34	)		(0.70	)		(0.79	)		(0.81	)		(0.82	)		(0.91	)
Net Asset Value, End of Period	$8.41			$7.57			$8.00			$8.10			$9.19			$9.79
Total Return5	15.90	%		3.48	%		8.77	%		(3.37	)%		2.30	%		2.94	%
Ratios to Average Net Assets:
Expenses	1.26	%6		1.26	%		1.23	%		1.19	%		1.16	%		1.13	%
Net investment income	7.57	%6		8.83	%1		9.93	%		9.44	%		8.93	%		8.12	%
Expense waiver/reimbursement7	0.07	%6		0.07	%		0.13	%		0.19	%		0.21	%		0.24	%
Supplemental Data:
Net assets, end of period (000 omitted)	$242,654		$167,387			$138,295			$127,397			$148,365			$141,065
Portfolio turnover	18	%		50	%		58	%		60	%		51	%		93	%

1 Effective December 1, 2001, the Fund adopted the provisions of the American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premium on long-term debt securities. The effect of this change for the year ended November 30, 2002 was to decrease net investment income per share by $0.03, increase net realized and unrealized gain/loss per share by $0.03, and decrease the ratio of net investment income to average net assets from 9.31% to 8.83%. Per share, ratios and supplemental data for periods prior to November 30, 2002 have not been restated to reflect this change in presentation.

2 Based on average shares outstanding.

3 Distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles ("GAAP"). These distributions do not represent a return of capital for federal income tax purposes.

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

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 B Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended November 30,
	5/31/2003			2002			2001			2000			1999			1998
Net Asset Value, Beginning of Period	$7.57			$8.00			$8.10			$9.19			$9.79			$10.40
Income From Investment Operations:
Net investment income	0.28			0.63	1,2		0.76			0.77			0.80			0.75
Net realized and unrealized gain (loss) on investments and foreign currency transactions	0.87			(0.42	)1		(0.13	)		(1.12	)		(0.65	)		(0.53	)
TOTAL FROM INVESTMENT OPERATIONS	1.15			0.21			0.63			(0.35	)		0.15			0.22
Less Distributions:
Distributions from net investment income	(0.31	)		(0.64	)		(0.71	)		(0.74	)		(0.75	)		(0.73	)
Distributions in excess of net investment income3	--			--			--			--			--			(0.07	)
Distributions from paid in capital4	--			--			(0.02	)		--			--			--
Distributions from net realized gain on investments and foreign currency transactions	--			--			--			--			--			(0.03	)
TOTAL DISTRIBUTIONS	(0.31	)		(0.64	)		(0.73	)		(0.74	)		(0.75	)		(0.83	)
Net Asset Value, End of Period	$8.41			$7.57			$8.00			$8.10			$9.19			$  9.79
Total Return5	15.47	%		2.70	%		7.97	%		(4.10	)%		1.54	%		2.17	%
Ratios to Average Net Assets:
Expenses	2.01	%6		2.01	%		1.98	%		1.94	%		1.91	%		1.88	%
Net investment income	6.84	%6		8.08	%1		9.18	%		8.70	%		8.18	%		7.37	%
Expense waiver/reimbursement7	0.07	%6		0.07	%		0.13	%		0.19	%		0.21	%		0.24	%
Supplemental Data:
Net assets, end of period (000 omitted)	$642,446		$550,731			$592,565			$581,077			$733,507			$689,687
Portfolio turnover	18	%		50	%		58	%		60	%		51	%		93	%

1 Effective December 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premium on long-term debt securities. The effect of this change for the year ended November 30, 2002 was to decrease net investment income per share by $0.04, increase net realized and unrealized gain/loss per share by $0.04, and decrease the ratio of net investment income to average net assets from 8.55% to 8.08%. Per share, ratios and supplemental data for periods prior to November 30, 2002 have not been restated to reflect this change in presentation.

2 Based on average shares outstanding.

3 Distributions are determined in accordance with income tax regulations which may differ from GAAP. These distributions do not represent a return of capital for federal income tax purposes.

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

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)			Year Ended November 30,
	5/31/23003			2002			2001			2000			1999			1998
Net Asset Value, Beginning of Period	$7.57			$8.00			$8.10			$9.19			$9.79			$10.41
Income From Investment Operations:
Net investment income	0.27			0.63	1,2		0.76			0.77			0.80			0.75
Net realized and unrealized gain (loss) on investments and foreign currency transactions	0.88			(0.42	)1		(0.13	)		(1.12	)		(0.65	)		(0.54	)
TOTAL FROM INVESTMENT OPERATIONS	1.15			0.21			0.63			(0.35	)		0.15			0.21
Less Distributions:
Distributions from net investment income	(0.31	)		(0.64	)		(0.71	)		(0.74	)		(0.75	)		(0.73	)
Distributions in excess of net investment income3	--			--			--			--			--			(0.07	)
Distributions from paid in capital4	--			--			(0.02	)		--			--			--
Distributions from net realized gain on investments and foreign currency transactions	--			--			--			--			--			(0.03	)
TOTAL DISTRIBUTIONS	(0.31	)		(0.64	)		(0.73	)		(0.74	)		(0.75	)		(0.83	)
Net Asset Value, End of Period	$8.41			$7.57			$8.00			$8.10			$9.19			$  9.79
Total Return5	15.47	%		2.70	%		7.97	%		(4.10	)%		1.54	%		2.18	%
Ratios to Average Net Assets:
Expenses	2.02	%6		2.01	%		1.98	%		1.94	%		1.91	%		1.88	%
Net investment income	6.84	%6		8.08	%1		9.18	%		8.66	%		8.18	%		7.37	%
Expense waiver/reimbursement7	0.07	%6		0.07	%		0.13	%		0.19	%		0.21	%		0.24	%
Supplemental Data:
Net assets, end of period (000 omitted)	$67,494		$52,300			$52,146			$52,697			$70,531			$73,509
Portfolio turnover	18	%		50	%		58	%		60	%		51	%		93	%

1 Effective December 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premium on long-term debt securities. The effect of this change for the year ended November 30, 2002 was to decrease net investment income per share by $0.04, increase net realized and unrealized gain/loss per share by $0.04, and decrease the ratio of net investment income to average net assets from 8.56% to 8.08%. Per share, ratios and supplemental data for periods prior to November 30, 2002 have not been restated to reflect this change in presentation.

2 Based on average shares outstanding.

3 Distributions are determined in accordance with income tax regulations which may differ from GAAP. These distributions do not represent a return of capital for federal income tax purposes.

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

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 F Shares

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited)			Year Ended November 30,
	5/31/2003			2002			2001			2000			1999			1998
Net Asset Value, Beginning of Period	$7.55			$7.99			$8.09			$9.18			$9.79			$10.41
Income From Investment Operations:
Net investment income	0.30			0.69	1,2		0.82			0.84			0.87			0.82
Net realized and unrealized gain (loss) on investments and foreign currency transactions	0.88			(0.43	) 1		(0.13	)		(1.12	)		(0.66	)		(0.53	)
TOTAL FROM INVESTMENT OPERATIONS	1.18			0.26			0.69			(0.28	)		0.21			0.29
Less Distributions:
Distributions from net investment income	(0.34	)		(0.70	)		(0.76	)		(0.81	)		(0.82	)		(0.81	)
Distributions in excess of net investment income3	--			--			--			--			--			(0.07	)
Distributions from paid in capital4	--			--			(0.03	)		--			--			--
Distributions from net realized gain on investments and foreign currency transactions	--			--			--			--			--			(0.03	)
TOTAL DISTRIBUTIONS	(0.34	)		(0.70	)		(0.79	)		(0.81	)		(0.82	)		(0.91	)
Net Asset Value, End of Period	$8.39			$7.55			$7.99			$8.09			$9.18			$  9.79
Total Return5	15.94	%		3.36	%		8.78	%		(3.38	)%		2.20	%		2.94	%
Ratios to Average Net Assets:
Expenses	1.26	%6		1.26	%		1.23	%		1.19	%		1.16	%		1.13	%
Net investment income	7.60	%6		8.83	%1		9.93	%		9.42	%		8.92	%		8.12	%
Expense waiver/reimbursement7	0.57	%6		0.57	%		0.63	%		0.69	%		0.71	%		0.74	%
Supplemental Data:
Net assets, end of period (000 omitted)	$23,214		$20,569			$24,885			$27,560			$34,034			$35,941
Portfolio turnover	18	%		50	%		58	%		60	%		51	%		93	%

1 Effective December 1, 2001, the Fund adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premium on long-term debt securities. The effect of this change for the year ended November 30, 2002 was to decrease net investment income per share by $0.03, increase net realized and unrealized gain/loss per share by $0.03, and decrease the ratio of net investment income to average net assets from 9.30% to 8.83%. Per share, ratios and supplemental data for periods prior to November 30, 2002 have not been restated to reflect this change in presentation.

2 Based on average shares outstanding.

3 Distributions are determined in accordance with income tax regulations which may differ from GAAP. These distributions do not represent a return of capital for federal income tax purposes.

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

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

Portfolio of Investments

May 31, 2003 (unaudited)

Principal Amount				Value in U.S. Dollars
			U.S. CORPORATE BONDS--8.4%
			Aerospace & Defense--0.2%
$	2,000,000		Raytheon Co., 8.200%, 3/1/2006	$	2,305,060
			Automotive--0.1%
	775,000		General Motors Corp., Note, 9.450%, 11/1/2011		898,210
			Banking--0.7%
	3,000,000		FirstBank Puerto Rico, Sub. Note, 7.625%, 12/15/2005		3,178,980
	2,209,878	1	Regional Diversified Funding, 9.250%, 3/15/2030		2,696,604
	1,000,000	1	Swedbank, Sub. Note, 7.500%, 11/29/2049		1,147,380
			TOTAL		7,022,964
			Basic Industry - Chemicals--0.1%
	1,450,000	1	Fertinitro Finance, Company Guarantee, 8.290%, 4/1/2020		634,375
			Basic Industry - Metals & Mining--1.2%
	1,000,000		Barrick Gold Corp., Deb., 7.500%, 5/1/2007		1,161,930
	3,425,000		Great Central Mining, 8.875%, 4/1/2008		1,729,625
	1,950,000		INCO Ltd., Note, 9.600%, 6/15/2022		2,049,957
	1,000,000		Noranda, Inc., Deb., 8.125%, 6/15/2004		1,043,250
	2,300,000	1	Normandy Finance Ltd., Company Guarantee, 7.500%, 7/15/2005		2,454,123
	3,000,000		Placer Dome, Inc., Bond, 8.500%, 12/31/2045		3,710,940
			TOTAL		12,149,825
			Basic Industry - Paper--0.1%
	250,000		Pope & Talbot, Inc., 8.375%, 6/1/2013		231,250
	450,000		Westvaco Corp., Sr. Deb., 7.500%, 6/15/2027		522,171
			TOTAL		753,421
			Capital Goods - Diversified Manufacturing--0.2%
	1,500,000	1	Hutchison Whampoa Ltd., 6.500%, 2/13/2013		1,602,405
			Capital Goods - Environmental--0.3%
	2,700,000		Waste Management, Inc., Deb., 8.750%, 5/1/2018		3,290,301
			Chemicals & Plastics--0.1%
	1,250,000	1	Reliance Industries Ltd., Bond, 8.250%, 1/15/2027		1,386,263
			Communications - Media & Cable--0.8%
	2,500,000		CF Cable TV, Note, 9.125%, 7/15/2007		2,512,500
	2,000,000		Comcast Corp., 5.300%, 1/15/2014		2,063,340
	1,000,000		Comcast Corp., 7.050%, 3/15/2033		1,123,930
	2,000,000		Continental Cablevision, Sr. Deb., 9.500%, 8/1/2013		2,369,600
			TOTAL		8,069,370
Principal Amount				Value in U.S. Dollars
			U.S. CORPORATE BONDS--continued
			Communications -- Media Noncable--0.5%
$	1,000,000		News America Hldgs., Inc., Note, 8.150%, 10/17/2036	$	1,264,750
	880,000		News America Holdings, Company Guarantee, 8.000%, 10/17/2016		1,128,248
	2,000,000		Univision Communications, Inc., 7.850%, 7/15/2011		2,400,180
			TOTAL		4,793,178
			Consumer Cyclical - Entertainment--0.4%
	2,000,000		AOL Time Warner, Inc., 5.625%, 5/1/2005		2,117,740
	1,500,000		International Speedway Co, 7.875%, 10/15/2004		1,603,335
			TOTAL		3,721,075
			Consumer Cyclical - Retailers--0.2%
	2,300,000		Shopko Stores, Sr. Note, 9.250%, 3/15/2022		2,058,500
			Consumer Products--0.4%
	4,000,000		Albecca, Inc., Company Guarantee, 10.750%, 8/15/2008		4,285,000
			Energy - Independent--0.2%
	1,000,000	1	EOG Company of Canada, Company Guarantee, Series 144A, 7.000%, 12/1/2011		1,141,620
	650,000		Pemex Project Funding Master, Company Guarantee, 9.125%, 10/13/2010		794,625
			TOTAL		1,936,245
			Energy - Integrated--0.3%
	500,000		Conoco Funding Co., 7.250%, 10/15/2031		641,420
	600,000		Husky Oil Ltd., Deb., 7.550%, 11/15/2016		760,794
	1,250,000		Husky Oil Ltd., Sr. Note, 7.125%, 11/15/2006		1,407,162
			TOTAL		2,809,376
			Finance - Automotive--0.1%
	1,000,000		General Motors Acceptance, 8.000%, 11/1/2031		1,038,800
			Financial Institutions - Finance Noncaptive--0.1%
	500,000		Capital One Financial Corp., Sr. Note, 7.250%, 12/1/2003		504,625
			Financial Institutions - Insurance - Life--0.8%
	550,000		AXA-UAP, Sub. Note, 8.600%, 12/15/2030		711,980
	3,164,000		Delphi Financial Group, Note, 8.000%, 10/1/2003		3,208,011
	750,000		Delphi Funding, 9.310%, 3/25/2027		617,437
	2,000,000	1	Life Re Capital Trust I, Company Guarantee, 8.720%, 6/15/2027		2,308,640
	500,000	1	Union Central Life Ins. Co., Note, 8.200%, 11/1/2026		548,195
			TOTAL		7,394,263
			Financial Institutions - Insurance - Property & Casualty--0.5%
	500,000		AFC Capital Trust I, Bond, 8.207%, 2/3/2027		390,125
	1,500,000		CNA Financial Corp., Bond, 6.950%, 1/15/2018		1,438,125
	1,000,000	2	Conseco Finance Corp., Unsecd. Note, 8.796%, 4/1/2027		12,500
Principal Amount or Foreign Currency Par Amount				Value in U.S. Dollars
			U.S.CORPORATE BONDS--continued
			Financial Institutions - Insurance - Property & Casualty--continued
$	1,300,000		Travelers Property Casualty, Sr. Note, 6.375%, 3/15/2033	$	1,466,114
	500,000	1	USF&G Cap, 8.312%, 7/1/2046		593,620
	500,000		USF&G Corp., Company Guarantee, 8.470%, 1/10/2027		582,060
			TOTAL		4,482,544
			Financial Institutions -- REITs--0.1%
	500,000		SUSA Partnership, L.P., 8.200%, 6/1/2017		677,870
			Technology--0.2%
	1,650,000		Unisys Corp., 8.125%, 6/1/2006		1,757,250
			Telecommunications & Cellular--0.1%
	1,137,000		Tritel PCS, Inc., Sr. Sub. Note, 10.375%, 1/15/2011		1,372,928
			Utility - Electric--0.7%
	1,800,000		Duke Energy Corp., Note, 6.250%, 1/15/2012		2,031,678
	1,750,000		Homer City Funding, Sr. Secd. Note, 8.734%, 10/1/2026		1,785,000
	550,000	1	Israel Electric Corp. Ltd., Sr. Note, 7.875%, 12/15/2026		538,384
	500,000	1	Israel Electric Corp. Ltd., Sr. Secd. Note, 7.750%, 3/1/2009		555,495
	1,000,000		Oncor, Inc., Deb., 7.000%, 9/1/2022		1,150,170
	1,000,000	1	Tenaga Nasional, Deb., 7.500%, 1/15/2096		879,520
			TOTAL		6,940,247
			TOTAL U.S. CORPORATE BONDS (IDENTIFIED COST $80,797,067)		81,884,095
			INTERNATIONAL BONDS--27.4%
			AUSTRALIAN DOLLAR--0.2%
			Sovereign--0.2%
	2,000,000		Australia, Government of, Series 808, 8.750%, 8/15/2008		1,547,240
			State/Provincial--0.0%
	550,000		Victoria, State of, Local Gov't. Guarantee, 10.250%, 11/15/2006		422,144
			TOTAL AUSTRALIAN DOLLAR		1,969,384
			CANADIAN DOLLAR--0.3%
			Forest Products--0.3%
	3,750,000		Avenor Inc., Deb., 10.850%, 11/30/2014		3,100,303
			DANISH KRONE--0.1%
			Sovereign--0.1%
	5,250,000		Denmark, Government of, Bullet, 8.000%, 3/15/2006		950,500
			EURO--3.5%
			Oil & Gas--0.5%
	4,750,000	1	Petroplus Funding BV, Bond, Series 144A, 10.500%, 10/15/2010		4,525,816
Foreign Currency Par Amount				Value in U.S. Dollars
			INTERNATIONAL BONDS--continued
			EURO--continued
			Sovereign--2.6%
	1,000,000		Austria, Government of, Bond, 6.250%, 7/15/2027	$	1,457,137
	2,250,000		Austria, Government of, Bond, Series 97 5, 5.625%, 7/15/2007		2,923,222
	3,476,784		Germany, Government of, Deb., 6.250%, 1/4/2024		5,092,547
	476,308		Ireland, Government of, Deb., 4.000%, 4/18/2010		580,264
	2,704,542		Ireland, Government of, Deb., 9.000%, 9/1/2006		3,810,202
	335,696		Italy, Government of, 7.750%, 11/1/2006		459,640
	4,699,749		Italy, Government of, Bond, 10.500%, 9/1/2005		6,516,780
	1,247,895		Netherlands, Government of, Bond, Series 1&2, 8.500%, 6/1/2006		1,716,708
	1,361,340		Netherlands, Government of, Bond, 7.500%, 4/15/2010		2,008,887
	680,670		Netherlands, Government of, Bond, Series 1&2A, 8.250%, 2/15/2007		954,450
			TOTAL		25,519,837
			Telecommunications & Cellular--0.4%
	692,852		Jazztel PLC, 12.000%, 10/30/2012		403,014
	2,500,000		PTC International Finance, Company Guarantee, Series EUR, 11.250%, 12/1/2009		3,242,178
			TOTAL		3,645,192
			TOTAL EURO		33,690,845
			HUNGARIAN FORINT--0.4%
			Banking--0.2%
	400,000,000		European Investment Bank, Series 3, 11.750%, 6/25/2004		1,982,207
			Sovereign--0.2%
	450,000,000		Hungary, Government of, Bond, Series 03/I, 13.000%, 7/24/2003		2,143,248
			TOTAL HUNGARIAN FORINT		4,125,455
			NEW ZEALAND DOLLAR--0.1%
			Sovereign--0.1%
	2,300,000		New Zealand, Government of, Deb., 8.000%, 11/15/2006		1,449,675
			POLISH ZLOTY--0.5%
			Sovereign--0.5%
	17,750,000		Poland, Government of, Bond, 12.000%, 10/12/2003		4,863,462
			SOUTH AFRICAN RAND--0.7%
			Government Agency--0.3%
	11,000,000		Lesotho Water Authority, Foreign Gov't. Guarantee, 13.000%, 9/15/2010		1,601,636
	10,000,000	1	Telkom SA Ltd., 10.000%, 3/31/2008		1,252,582
			TOTAL		2,854,218
Foreign Currency Par Amount or Principal Amount				Value in U.S. Dollars
			INTERNATIONAL BONDS--continued
			SOUTH AFRICAN RAND--continued
			Sovereign--0.4%
	10,000,000		South Africa, Government of, 12.000%, 2/28/2005	$	1,283,439
	15,000,000		South Africa, Government of, 13.500%, 9/15/2015		2,409,555
			TOTAL		3,692,994
			TOTAL SOUTH AFRICAN RAND		6,547,212
			SWEDISH KRONA--0.3%
			Sovereign--0.3%
	10,500,000		Sweden, Government of, Bond, 8.000%, 8/15/2007		1,588,458
	7,500,000		Sweden, Government of, Deb., Series 1038, 6.500%, 10/25/2006		1,060,125
			TOTAL SWEDISH KRONA		2,648,583
			U.S. DOLLAR--21.3%
			Broadcast Radio & TV--0.1%
$	1,200,000		Central European Media Enterprises Ltd., Sr. Note, 9.375%, 8/15/2004		1,206,000
			Cable & Wireless Television--1.3%
	9,000,000		Innova S De R.L., Sr. Note, 12.875%, 4/1/2007		9,050,562
	8,000,000		Satelites Mexicanos SA, Sr. Note, Series B, 10.125%, 11/1/2004		3,600,000
			TOTAL		12,650,562
			Consumer Cyclical - Retailers--0.6%
	5,600,000	3	Grupo Elektra S.A. de C., Sr. Note, 12.000%, 4/1/2008		5,572,000
			Container & Glass Products--0.2%
	1,700,000		Vicap SA, Sr. Note, Series EXCH, 11.375%, 5/15/2007		1,504,500
			Oil & Gas--2.0%
	7,200,000		Bluewater Finance Ltd., Company Guarantee, 10.250%, 2/15/2012		7,344,000
	4,200,000	1	Companhia Petrolifera Marlim, 12.250%, Series 144A, 9/26/2008		4,557,000
	4,400,000		Gazprom, Note, Series 144A, 9.625%, 3/1/2013		4,906,000
	2,000,000	1	Petronas Capital Ltd., Company Guarantee, Series 144A, 7.875%, 5/22/2022		2,387,300
			TOTAL		19,194,300
			Paper Products--0.6%
	11,500,000	2	Corporacion Durango SA de CV, Sr. Note, Series 144A, 13.750%, 7/15/2009		6,095,000
			Rail Industry--0.1%
	1,350,000		Transportacion Ferroviaria Mexicana SA de CV, Company Guarantee, 11.750%, 6/15/2009		1,383,750
			Sovereign--14.6%
	13,914,933		Brazil, Gov Brady, C Bond, 8.000%, 4/15/2014		12,300,801
	10,550,000		Brazil, Government of, 10.125%, 5/15/2027		9,358,905
Principal Amount				Value in U.S. Dollars
			INTERNATIONAL BONDS--continued
			U.S. DOLLAR--continued
			Sovereign--continued
$	7,975,000		Brazil, Government of, Bond, 11.500%, 3/12/2008	$	8,433,562
	1,500,000		Brazil, Government of, Note, 10.000%, 1/16/2007		1,545,000
	4,850,000		Brazil, Government of, Note, 11.000%, 1/11/2012		4,947,000
	7,600,000		Brazil, Government of, Note, 12.000%, 4/15/2010		8,094,000
	1,000,000	1	Bulgaria, Government of, Bond, Series 144A, 8.250%, 1/15/2015		1,186,000
	4,850,000		Colombia, Government of, 10.000%, 1/23/2012		5,444,125
	3,500,000		Colombia, Government of, Bond, 10.375%, 1/28/2033		4,026,750
	1,700,000		El Salvador, Government, Bond, Series REGS, 8.250%, 4/10/2032		1,700,000
	1,000,000	1	El Salvador, Government of, Bond, Series 144a, 7.750%, 1/24/2023		1,068,750
	2,350,000		Mexico, Government of, Bond, 8.000%, 9/24/2022		2,703,088
	1,000,000		Mexico, Government of, Bond, Series MTN, 8.300%, 8/15/2031		1,188,750
	2,800,000		Mexico, Government of, Note, 4.625%, 10/8/2008		2,906,400
	4,400,000		Peru, Government of, Note, 9.875%, 2/6/2015		5,119,400
	1,200,000		Philippines, Government, 9.875%, 1/15/2019		1,329,000
	3,150,000		Philippines, Government of, Note, 8.375%, 3/12/2009		3,370,500
	12,800,000		Russia, Government of, Series REGS, 8.250%, 3/31/2010		14,976,000
	9,050,000		Russia, Government of, Unsub., Series REGS, 12.750%, 6/24/2028		15,326,175
	16,000,000	1	Russia, Government of, Unsub., Series REGS, 5.000%, 3/31/2030		15,635,200
	2,750,000		South Africa, Government, Note, 7.375%, 4/25/2012		3,262,187
	1,950,000		Turkey, Government of, 11.000%, 1/14/2013		2,015,813
	5,760,000		Turkey, Government of, Sr. Unsub., 11.875%, 1/15/2030		6,184,800
	14,500,000		Venezuela, Government of, Bond, 9.250%, 9/15/2027		10,403,750
			TOTAL		142,525,956
			Telecommunications & Cellular--1.8%
	900,000		Cellco Finance NV, Sr. Sub. Note, 15.000%, 8/1/2005		846,000
	1,762,000		PTC Intl. Finance BV, 10.750%, 7/1/2007		1,858,910
	6,500,000		Partner Communications, Sr. Sub. Note, 13.000%, 8/15/2010		7,475,000
	2,100,000		Philippine Long Distance, Sr. Unsub., 11.375%, 5/15/2012		2,152,500
	5,100,000		Vimpelcom, Note, Series REGS, 10.450%, 4/26/2005		5,546,250
			TOTAL		17,878,660
			TOTAL U.S. DOLLAR		208,010,728
			TOTAL INTERNATIONAL BONDS (IDENTIFIED COST $238,396,217)		267,356,147
Principal Amount or Shares				Value in U.S. Dollars
			ASSET BACKED CERTIFICATE--0.0%
			Non-Agency Mortgage--0.0%
$	151,015	1	SMFC Trust Asset-Backed Certificates, Series 1997-A 4, 4.746%, 1/28/2025 (IDENTIFIED COST $138,022)	$	115,999
			ASSET BACKED NOTE--0.3%
			Asset-Backed Securities--0.1%
	1,169,551	1	125 Home Loan Owner Trust 1998-1A B1, 9.260%, 2/15/2029		1,229,304
			Home Equity Loan--0.1%
	404,620		New Century Home Equity Loan Trust 1997-NC5 M2, 7.240%, 10/25/2028		429,742
			Manufactured Housing--0.1%
	2,000,000		Green Tree Financial Corp. 1993-4 B2, 8.550%, 1/15/2019		1,308,440
			TOTAL ASSET BACKED NOTE (IDENTIFIED COST $3,589,547)		2,967,486
			COMMON STOCK--0.6%
			Telecommunications & Cellular--0.6%
	298		AT&T Canada, Inc., Class A		8,621
	16,082		AT&T Canada, Inc., Class B		466,378
	4,026,252		Jazztel PLC		1,539,226
	4,452,094		Netia Holdings SA		3,869,254
			TOTAL COMMON STOCK (IDENTIFIED COST $2,598,853)		5,883,479
			U.S. GOVERNMENT AGENCIES--0.0%
			Long-Term Government Obligations--0.0%
$	253,733		Government National Mortgage Association Pool 780360, 11.000%, 30 Year, 9/15/2015 (IDENTIFIED COST $285,133)		283,070
			US TREASURY OBLIGATIONS--7.6%
			U.S. Treasury Bonds--7.6%
	3,500,000		United States Treasury Bond, 10.750%, 8/15/2005		4,213,125
	14,725,000	3	United States Treasury Bond, 11.625%, 11/15/2004		16,926,829
	6,800,000	3	United States Treasury Bond, 11.875%, 11/15/2003		7,127,488
	15,000,000	3	United States Treasury Bond, 12.000%, 5/15/2005		18,107,850
	10,910,000	3	United States Treasury Bond, 12.375%, 5/15/2004		12,064,933
	13,230,000		United States Treasury Bond, 13.750%, 8/15/2004		15,220,718
			TOTAL U.S. TREASURY OBLIGATIONS (IDENTIFIED COST $80,928,076)		73,660,943
			MUNICIPALS--0.2%
			Municipal Services--0.1%
	750,000		Atlanta & Fulton County, GA Recreation Authority, (Downtown Arena Project), Taxable Revenue Bonds, Series 1997, 7.000%, 12/1/2028		859,282
	250,000		McKeesport, PA, Taxable GO Series B 1997, 7.300%, 3/1/2020		272,818
			TOTAL		1,132,100
Principal Amount or Shares				Value in U.S. Dollars
			MUNICIPALS--continued
			Real Estate--0.1%
$	855,000		North Central, TX Housing Finance Corp., (Tiffany Square Apartments), Housing Revenue Bonds (Series 1999-B), 9.100%, 12/1/2014	$	1,012,705
			TOTAL MUNICIPALS (IDENTIFIED COST $1,847,355)		2,144,805
			MUTUAL FUNDS--57.4%
	6,519,482		Emerging Markets Fixed Income Core Fund		89,335,698
	4,706,970		Federated Mortgage Core Portfolio		48,387,658
	56,205,111		High Yield Bond Portfolio		367,581,429
	19,502,641		Prime Value Obligations Fund, Class IS		19,502,641
	35,481,909		Prime Value Obligations Fund, Class IS (held as collateral for securities lending)		35,481,909
			TOTAL MUTUAL FUNDS (IDENTIFIED COST $683,607,464)		560,289,335
			PREFERRED STOCK--0.3%
			Financial Institutions - Brokerage--0.2%
	40,000		Lehman Brothers Holdings, Pfd. 5.670%		2,068,752
			Financial Institutions -- REITs--0.1%
	9,900		Prologis Trust, REIT Perpetual Pfd. Stock, Series C		571,725
			TOTAL PREFERRED STOCK (IDENTIFIED COST $2,146,407)		2,640,477
			WARRANTS--0.0%
			U.S. DOLLAR--0.0%
			Insurance--0.0%
	2,013	2	Arcadia Financial Ltd. -- Warrants		20
			Sovereign--0.0%
	250	2	Nigeria, Government of, Warrants 11/15/2020		0
			TOTAL WARRANTS (IDENTIFIED COST $0)		20
			TOTAL INVESTMENTS--102.2% (IDENTIFIED COST $1,094,334,141)4		997,225,856
			OTHER ASSETS AND LIABILITIES -- NET--(2.2)%		(21,418,272	)
			TOTAL NET ASSETS--100%	$	975,807,584

1 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, 2003 these securities amounted to $48,444,575 which represents 5.0% of net assets.

2 Non-income producing security.

3 Certain principal amounts are temporarily on loan to unaffiliated broker/dealers.

4 The cost of investments for federal tax purposes amounts to $1,104,885,409.

Note: The categories of investments are shown as a percentage of total net assets at May 31, 2003.

The following acronyms are used throughout this portfolio:

GO	- --General Obligation
MTN	- --Medium Term Note
REIT	- --Real Estate Investment Trust

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities

May 31, 2003 (unaudited)

Assets:
Total investments in securities, at value, including $34,772,837 of securities loaned (identified cost $1,094,334,141)			$	997,225,856
Income receivable				9,179,408
Receivable for shares sold				10,079,297
TOTAL ASSETS				1,016,484,561
Liabilities:
Payable for shares redeemed	$	1,680,419
Income distribution payable		2,825,958
Payable on collateral due to broker		35,481,909
Accrued expenses		688,691
TOTAL LIABILITIES				40,676,977
Net assets for 116,057,859 shares outstanding			$	975,807,584
Net Assets Consist of:
Paid in capital			$	1,147,481,855
Net unrealized depreciation of investments and translation of assets and liabilities in foreign currency				(96,977,301	)
Accumulated net realized loss on investments and foreign currency transactions				(64,176,921	)
Distributions in excess of net investment income				(10,520,049	)
TOTAL NET ASSETS			$	975,807,584
Net Asset Value, Offering Price and Redemption Proceeds Per Share
Class A Shares:
Net asset value per share ($242,654,228 ÷ 28,852,614 shares outstanding)				$8.41
Offering price per share (100/95.50 of $8.41)1				$8.81
Redemption proceeds per share				$8.41
Class B Shares:
Net asset value per share ($642,445,519 ÷ 76,413,181 shares outstanding)				$8.41
Offering price per share				$8.41
Redemption proceeds per share (94.50/100 of $8.41)2				$7.95
Class C Shares:
Net asset value per share ($67,493,607 ÷ 8,024,961 shares outstanding)				$8.41
Offering price per share (100/99.00 of $8.41)1				$8.49
Redemption proceeds per share (99.00/100 of $8.41)2				$8.33
Class F Shares:
Net asset value per share ($23,214,230 ÷ 2,767,103 shares outstanding)				$8.39
Offering price per share (100/99.00 of $8.39)1				$8.47
Redemption proceeds per share (99.00/100 of $8.39)2				$8.31

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

2 See "Contingent Deferred Sales Charge" in the Prospectus.

See Notes which are an integral part of the Financial Statements

Statement of Operations

Six Months Ended May 31, 2003 (unaudited)

Investment Income:
Dividends							$	17,485,729
Interest (including income on securities loaned of $12,910 and net of foreign taxes withheld of $6,473)								17,188,489
Income allocated from partnership								3,331,154
TOTAL INCOME								38,005,372
Expenses:
Investment adviser fee				$	3,647,364
Administrative personnel and services fee					322,684
Custodian fees					57,697
Transfer and dividend disbursing agent fees and expenses					375,858
Directors'/Trustees' fees					4,380
Auditing fees					9,402
Legal fees					2,498
Portfolio accounting fees					82,296
Distribution services fee--Class B Shares					2,192,302
Distribution services fee--Class C Shares					210,676
Distribution services fee--Class F Shares					54,052
Shareholder services fee--Class A Shares					244,736
Shareholder services fee--Class B Shares					730,767
Shareholder services fee--Class C Shares					70,225
Shareholder services fee--Class F Shares					27,026
Share registration costs					50,961
Printing and postage					52,347
Insurance premiums					1,161
Taxes					30,507
Miscellaneous					2,992
EXPENSES BEFORE ALLOCATION					8,169,931
Expenses allocated from partnership					19,703
TOTAL EXPENSES					8,189,634
Waivers and Reimbursement:
Waiver of investment adviser fee	$	(282,935	)
Waiver of transfer and dividend disbursing agent fees and expenses		(146	)
Waiver of distribution services fee--Class F Shares		(54,052	)
Reimbursement of investment adviser fee		(2,113	)
TOTAL WAIVERS AND REIMBURSEMENT					(339,246	)
Net expenses								7,850,388
Net investment income								30,154,984
Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions:
Net realized loss on investments and foreign currency transactions								(7,510,263	)
Net realized gain allocated from partnership								892,459
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency								102,198,089
Net realized and unrealized gain (loss) on investments and foreign currency transactions								95,580,285
Change in net assets resulting from operations							$	125,735,269

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets

	Six Months Ended (unaudited) 5/31/2003			Year Ended 11/30/2002
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	30,154,984		$	65,687,863
Net realized loss on investments and foreign currency transactions including allocation from partnership		(6,617,804	)		(4,302,353	)
Net change in unrealized appreciation/depreciation of investments and translation of assets and liabilities in foreign currency		102,198,089			(38,788,443	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		125,735,269			22,597,067
Distributions to Shareholders:
Distributions from net investment income
Class A Shares		(8,345,695	)		(13,243,187	)
Class B Shares		(22,621,193	)		(47,127,763	)
Class C Shares		(2,178,722	)		(4,143,227	)
Class F Shares		(919,625	)		(2,030,170	)
CHANGE IN NET ASSETS RESULTING FROM DISTRIBUTIONS TO SHAREHOLDERS		(34,065,235	)		(66,544,347	)
Share Transactions:
Proceeds from sale of shares		169,123,866			270,782,658
Net asset value of shares issued to shareholders in payment of distributions declared		17,802,174			32,616,865
Cost of shares redeemed		(93,775,197	)		(276,355,801	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		93,150,843			27,043,722
Change in net assets		184,820,877			(16,903,558	)
Net Assets:
Beginning of period		790,986,707			807,890,265
End of period (including distributions in excess of net investment income of $(10,520,049) and $(6,609,798), respectively)	$	975,807,584		$	790,986,707

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements

May 31, 2003 (unaudited)

ORGANIZATION

Federated Fixed Income Securities, 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 four portfolios. The financial statements included herein are only those of Federated Strategic 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 four classes of shares: Class A Shares, Class B Shares, Class C Shares and Class F Shares. The investment objective of the Fund is to seek a high level of current income.

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 ("GAAP").

Investment Valuation

Domestic and foreign equity securities are valued at the last sale price reported in the market in which they are primarily traded (either a national securities exchange or over-the-counter market), if available. If unavailable, the security is generally valued at the mean between the last closing bid and asked prices. 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 foreign security is determined. Fixed income, listed corporate bonds, 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. Investments in other open-end regulated investment companies are valued at net asset value. Securities for which no quotations are readily available, or whose values have been affected by a significant event occurring after the close of their primary markets, are valued at fair value as determined in good faith using methods approved by the Board of Directors (the "Directors").

Pursuant to an Exemptive Order issued by the Securities and Exchange Commissions ("SEC"), the Fund may invest in Federated Core Trust ("Core Trust") which is independently managed by Federated Investment Management Company, the Fund's adviser. Core Trust is an open-end management company, registered under the Act, available only to registered investment companies and other institutional investors. The investment objective of High Yield Bond Portfolio, a series of Core Trust, is to seek high current income by investing primarily in a diversified portfolio of lower rated fixed income securities. The investment objective of Federated Mortgage Core Portfolio, a series of Core Trust, is to seek total return by investing in a diversified portfolio of mortgage-backed fixed income securities. Federated receives no advisory or administrative fees on behalf of Core Trust. Income distributions from Core Trust are declared daily and paid monthly, and are recorded by the Fund as dividend income. Capital gain distributions, if any, from Core Trust are declared annually, and are recorded by the Fund as capital gains received. Additional information regarding High Yield Bond Portfolio and/or Federated Mortgage Core Portfolio is available upon request.

The Fund may also invest in Federated Core Trust II, L.P. ("Core Trust II"), pursuant to a separate Exemptive Order issued by the SEC. Core Trust II is managed independently by Federated Investment Management Company, the Fund's adviser. Core Trust II is a limited partnership established under the laws of the state of Delaware, on November 13, 2000, registered under the Act, and is offered only to registered investment companies and other accredited investors. The Fund may invest in emerging market fixed income securities primarily by investing in the Emerging Markets Fixed Income Core Fund, (formerly known as International High Income Core Fund) a portfolio of Core Trust II. The investment objective of the Emerging Markets Fixed Income Core Fund is to achieve total return on assets and high levels of income. The Fund records daily its proportionate share of income, expenses, unrealized gains and losses and realized gains and losses from Emerging Markets Fixed Income Core Fund. The financial statements of Emerging Markets Fixed Income Core Fund are included within this report to illustrate the security holdings, financial condition, results of operations and changes in net assets of the partnership in which the Fund shares a majority interest. The financial statements of Emerging Markets Fixed Income Core Fund should be read in conjunction with the Fund's financial statements. The valuation of securities held by Emerging Markets Fixed Income Core Fund is discussed in the notes to its financial statements.

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 the guidelines and/or standards reviewed or established by 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. 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.

Premium and Discount Amortization/Paydown Gains and Losses

All premiums and discounts on fixed income securities are amortized/accreted for financial statement purposes. Gains and losses realized on principal payment of mortgage-backed securities (paydown gains and losses) are classified as part of investment income.

Federal Taxes

It is the Fund's policy to comply with the Subchapter M provision of the Internal Revenue Code (the "Code") 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.

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.

Securities Lending

The Fund participates in a securities lending program providing for the lending of corporate bonds, equity and government securities to qualified brokers. Collateral for securities loaned is invested in an affiliated mutual fund. Collateral is maintained at a minimum level of 102% of the market value on investments loaned, plus interest, if applicable. Earnings on collateral are allocated between the custodian securities lending agent, as a fee for its services under the program, and the Fund, according to agreed-upon rates.

As of May 31, 2003, securities subject to this type of arrangement and related collateral were as follows:

Market Value of Securities Loaned	Market Value of Collateral
$34,772,837	$35,481,909

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 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.

For the six months ended May 31, 2003, the Fund had no outstanding foreign currency 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. 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 in good faith using methods approved by the Directors.

Use of Estimates

The preparation of financial statements in conformity with GAAP 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.

CHANGE IN ACCOUNTING POLICY

Effective December 1, 2001, the Corporation adopted the provisions of the revised American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guide for Investment Companies (the "Guide"). For financial statement purposes, the revised Guide requires the Fund to amortize premium and discount on all fixed income securities and to classify gains and losses realized on principal payments received on mortgage-backed securities (paydown gains and losses) as part of interest income.

Upon initial adoption, the Fund adjusted its cost of fixed income securities by the cumulative amount of amortization that would have been recognized had amortization been in effect from the purchase date of each holding with a corresponding reclassification between unrealized appreciation/depreciation on investments and undistributed net investment income. Adoption of these accounting principles does not affect the Fund's net asset value or distributions, but changes the classification of certain amounts between interest income and realized and unrealized gain/loss on the Statement of Operations. The cumulative effect to the Fund resulting from the adoption of premium and discount amortization and recognition of paydown gains and losses as part of interest income on the financial statements is as follows:

	As of 12/1/2001			For the Year Ended 11/30/2002
	Cost of Investments	Accumulated Net Realized Gain (Loss)	Undistributed Net Investment Income	Net Investment Income	Net Unrealized Appreciation/ Depreciation	Net Realized Gain (Loss)
Increase (Decrease)	$(11,048,862)	$(12,545)	$(11,036,317)	$(3,757,000)	$(379,541)	$4,136,541

The Statements of Changes in Net Assets and Financial Highlights for prior periods have not been restated to reflect this change in presentation.

CAPITAL STOCK

At May 31, 2003, par value shares ($0.001 per share) authorized were as follows:

Share Class Name	Number of Par Value Capital Stock Authorized
Class A Shares	1,000,000,000
Class B Shares	2,000,000,000
Class C Shares	1,000,000,000
Class F Shares	1,000,000,000
TOTAL	5,000,000,000

Transactions in capital stock were as follows:

	Six Months Ended 5/31/2003					Year Ended 11/30/2002
Class A Shares:	Shares			Amount		Shares			Amount
Shares sold	9,901,667		$	79,173,650		16,171,308		$	124,833,804
Shares issued to shareholders in payment of distributions declared	753,846			5,977,185		1,079,335			8,355,404
Shares redeemed	(3,907,550	)		(31,075,380	)	(12,431,280	)		(96,456,617	)
NET CHANGE RESULTING FROM CLASS A SHARE TRANSACTIONS	6,747,963		$	54,075,455		4,819,363		$	36,732,591
	Six Months Ended 5/31/2003					Year Ended 11/30/2002
Class B Shares:	Shares			Amount		Shares			Amount
Shares sold	9,146,244		$	72,990,608		14,308,817		$	111,427,764
Shares issued to shareholders in payment of distributions declared	1,287,100			10,179,271		2,704,834			21,002,904
Shares redeemed	(6,774,461	)		(53,649,466	)	(18,343,338	)		(141,800,656	)
NET CHANGE RESULTING FROM CLASS B SHARE TRANSACTIONS	3,658,883		$	29,520,413		(1,329,687	)	$	(9,369,988	)
	Six Months Ended 5/31/2003					Year Ended 11/30/2002
Class C Shares:	Shares			Amount		Shares			Amount
Shares sold	1,912,514		$	15,458,575		4,291,889		$	33,316,949
Shares issued to shareholders in payment of distributions declared	162,420			1,285,207		319,392			2,479,557
Shares redeemed	(956,540	)		(7,526,479	)	(4,222,050	)		(33,045,950	)
NET CHANGE RESULTING FROM CLASS C SHARE TRANSACTIONS	1,118,394		$	9,217,303		389,231		$	2,750,556
	Six Months Ended 5/31/2003					Year Ended 11/30/2002
Class F Shares:	Shares			Amount		Shares			Amount
Shares sold	188,941		$	1,501,033		155,669		$	1,204,141
Shares issued to shareholders in payment of distributions declared	45,676			360,511		100,518			779,000
Shares redeemed	(191,873	)		(1,523,872	)	(646,722	)		(5,052,578	)
NET CHANGE RESULTING FROM CLASS F SHARE TRANSACTIONS	42,744		$	337,672		(390,535	)	$	(3,069,437	)
NET CHANGE RESULTING FROM SHARE TRANSACTIONS	11,567,984		$	93,150,843		3,488,372		$	27,043,722

FEDERAL TAX INFORMATION

At May 31, 2003, the cost of investments for federal tax purposes was $1,104,885,409. The net unrealized depreciation of investments for federal tax purposes was $107,659,553. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $64,231,239 and net unrealized depreciation from investments for those securities having an excess of cost over value of $171,890,792.

The difference between book-basis and tax-basis unrealized appreciation/depreciation is attributable primarily to the the realization for tax purposes of unrealized gains on certain forward foreign currency contracts and the amortization/accretion tax elections on fixed income securities.

At November 30, 2002, the Fund had a capital loss carryforward of $44,945,339 which will reduce the Fund's taxable income arising from future net realized gains on investments, if any, to the extent permitted by the Internal Revenue Code and thus will reduce the amount of 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
2007	$ 16,617,166
2008	$  7,257,665
2009	$15,741,297
2010	$  5,329,211

OTHER TAXES

As an open-end management investment company incorporated in the state of Maryland but domiciled in Pennsylvania, the Fund is subject to the Pennsylvania Franchise Tax. This franchise tax is assessed annually on the value of the Fund, as represented by average net assets for the tax year.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company, 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.

Under the terms of a sub-adviser agreement between the Adviser and the Federated Global Investment Management Corp. ("FGIMC"), FGIMC receives an allocable portion of the Fund's investment adviser fee. Such allocation is based on the amount of foreign securities which FGIMC manages for the Fund. This fee is paid by the Adviser out of its resources and is not an incremental Fund expense.

Pursuant to an Exemptive Order issued by the SEC, the Fund may invest in Prime Value Obligations Fund, which is managed by the Fund's Adviser. The Adviser has agreed to reimburse certain investment adviser fees as a result of these transactions.

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 0.150% 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 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 B Shares, Class C Shares and Class F 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%
Class F Shares	0.50%

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

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

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. 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.

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 long-term U.S. government and short-term obligations (and in-kind contributions), for the six months ended May 31, 2003, were as follows:

Purchases	$	201,622,304
Sales	$	146,413,773

Purchases and sales of long-term U.S. government securities for the six months ended May 31, 2003 were as follows:

Purchases	$	14,537,298
Sales	$	6,500,000

CONCENTRATION OF CREDIT RISK

The Fund invests in securities of non-U.S. issuers. Although the Fund maintains a diversified investment portfolio, 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.

Financial Highlights -- Emerging Markets Fixed Income Core Fund

(For a Share Outstanding Throughout Each Period)

	Six Months Ended (unaudited) 5/31/2003		Period Ended 11/30/2002	1
Net Asset Value, Beginning of Period	$10.98		$10.00
Income From Investment Operations:
Net investment income	0.45		0.83	2
Net realized and unrealized gain on investments and foreign currency transactions	2.27		0.15	2
TOTAL FROM INVESTMENT OPERATIONS	2.72		0.98
Net Asset Value, End of Period	$13.70		$10.98
Total Return3	24.77	%	9.80	%
Ratios to Average Net Assets:
Expenses	0.05	%4	0.05	%4
Net investment income	9.31	%4	10.58	%2,4
Expense waiver/reimbursement5	0.12	%4	0.42	%4
Supplemental Data:
Net assets, end of period (000 omitted)	$111,240		$80,515
Portfolio turnover	41	%	178	%

1 Reflects operations for the period from January 14, 2002 (date of initial investment) to November 30, 2002.

2 Effective January 14, 2002, the Fund adopted the provisions of the American Institute of Certified Public Accountants (AICPA) Audit and Accounting Guide for Investment Companies and began accreting discount/amortizing premium on long-term debt securities. The effect of this change for the period ended November 30, 2002 was to increase net investment income per share by $0.01, decrease net realized and unrealized gain/loss per share by $0.01, and increase the ratio of net investment income to average net assets from 10.39% to 10.58%.

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

Portfolio of Investments -- Emerging Markets Fixed Income Core Fund

May 31, 2003 (unaudited)

Principal Amount				Value in U.S. Dollars
			CORPORATE BONDS--15.4%
			Broadcast Radio & TV--1.3%
$	1,400,000		Grupo Televisa SA, Sr. Note, 8.50%, 3/11/2032	$	1,510,250
			Cable & Wireless Television--1.3%
	1,400,000		Innova S De R.L., Sr. Note, 12.875%, 4/1/2007		1,407,865
			Container & Glass Products--1.3%
	1,600,000		Vicap SA, Sr. Note, Series EXCH, 11.375%, 5/15/2007		1,416,000
			Oil & Gas--7.6%
	2,000,000		Gazprom, Note, Series 144A, 9.625%, 3/1/2013		2,230,000
	3,000,000		Pemex Project Funding Master, Company Guarantee, 7.375%, 12/15/2014		3,333,570
	1,500,000	1	Petronas Capital Ltd., Company Guarantee, Series 144A, 7.875%, 5/22/2022		1,790,475
	1,300,000	1	Petrozuata Finance Inc., Company Guarantee, Series 144A, 8.22%, 4/1/2017		1,066,000
			TOTAL		8,420,045
			Paper Products--0.5%
	600,000	2	Corporacion Durango SA De CV, Sr. Note, 13.125%, 8/1/2006		327,000
	500,000	2	Corporacion Durango SA De CV, Sr. Note, Series 144A, 13.75%, 7/15/2009		265,000
			TOTAL		592,000
			Retailers--0.9%
	1,000,000		Grupo Elektra SA de CV, Sr. Note, 12.00%, 4/1/2008		995,000
			Telecommunications & Cellular--2.5%
	1,300,000		PCCW-HKTC Capital Ltd., Company Guarantee, Series REGS, 7.75%, 11/15/2011		1,474,057
	1,300,000		Philippine Long Distance Telephone Co., Sr. Unsub., 11.375%, 5/15/2012		1,332,500
			TOTAL		2,806,557
			TOTAL CORPORATE BONDS (IDENTIFIED COST $15,913,753)		17,147,717
			GOVERNMENT AGENCY--0.7%
	600,000		Banque Centrale de Tunisie, Unsub., 7.375%, 4/25/2012 (IDENTIFIED COST $592,182)		703,500
			SOVEREIGN GOVERNMENTS--81.0%
	5,850,000		Brazil, Government of, 10.125%, 5/15/2027		5,189,535
	3,100,000		Brazil, Government of, Bond, 11.50%, 3/12/2008		3,278,250
	5,726,057		Brazil, Government of, C Bond, 8.00%, 4/15/2014		5,061,834
	500,000		Brazil, Government of, Note, 10.00%, 1/16/2007		515,000
	2,710,000		Brazil, Government of, Note, 11.00%, 1/11/2012		2,764,200
	3,400,000		Brazil, Government of, Note, 12.00%, 4/15/2010		3,621,000
Principal Amount				Value in U.S. Dollars
			SOVEREIGN GOVERNMENTS--continued
$	550,000		Bulgaria, Government of, Bond, 8.25%, 1/15/2015	$	656,920
	1,100,000	1	Bulgaria, Government of, Bond, 8.25%, 1/15/2015		1,304,600
	3,380,000		Colombia, Government of, 10.00%, 1/23/2012		3,794,050
	1,140,000		Dominican Republic, Government of, Bond, 9.50%, 9/27/2006		1,145,700
	1,400,000		El Salvador, Government of, Bond, 8.25%, 4/10/2032		1,400,000
	4,000,000		Mexico, Government of, Bond, 8.00%, 9/24/2022		4,601,000
	3,500,000		Mexico, Government of, Bond, 8.30%, 8/15/2031		4,160,625
	2,600,000		Mexico, Government of, Note, 4.625%, 10/8/2008		2,698,800
	1,400,000		Mexico, Government of, Note, 7.50%, 1/14/2012		1,629,600
	3,650,000		Mexico, Government of, Note, 8.375%, 1/14/2011		4,462,125
	3,200,000		Mexico, Government of, Note, 9.875%, 2/1/2010		4,160,800
	1,115,000		Panama, Government of, Bond, 9.375%, 1/16/2023		1,265,525
	1,800,000		Peru, Government of, Note, 9.875%, 2/6/2015		2,094,300
	1,450,000		Philippines, Government of, 9.875%, 1/15/2019		1,605,875
	1,225,000		Philippines, Government of, Note, 10.625%, 3/16/2025		1,428,227
	2,000,000		Russia, Government of, 10.00%, 6/26/2007		2,454,600
	4,550,000		Russia, Government of, 8.25%, 3/31/2010		5,323,500
	2,500,000		Russia, Government of, Unsub., 12.75%, 6/24/2028		4,233,750
	9,950,000		Russia, Government of, Unsub., 5.00%, 3/31/2030		9,723,140
	1,000,000		South Africa, Government of, Note, 7.375%, 4/25/2012		1,186,250
	1,500,000		South Africa, Government of, Note, 8.50%, 6/23/2017		1,910,625
	610,000		Turkey, Government of, 11.00%, 1/14/2013		630,587
	2,330,000		Turkey, Government of, Sr. Unsub., 11.875%, 1/15/2030		2,501,838
	448,002		Ukraine, Government of, Sr. Note, 11.00%, 3/15/2007		500,105
	6,700,000		Venezuela, Government of, Bond, 9.25%, 9/15/2027		4,807,250
			TOTAL SOVEREIGN GOVERNMENTS (IDENTIFIED COST $76,830,318)		90,109,611
Principal Amount				Value in U.S. Dollars
			REPURCHASE AGREEMENT--1.0%
$	1,133,000		Interest in $515,000,001 joint repurchase agreement with Bank of America LLC, 1.35%, dated 5/30/2003, to be repurchased at $1,133,127 on 6/2/2003, collateralized by U.S. Government Agency Obligations with various maturities to 6/25/2033 (AT AMORTIZED COST)	$	1,133,000
			TOTAL INVESTMENTS--98.1% (IDENTIFIED COST $94,469,253)3		109,093,828
			OTHER ASSETS AND LIABILITIES -- NET--1.9%		2,146,032
			TOTAL NET ASSETS--100%	$	111,239,860

1 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 Trustees. At May 31, 2003 these securities amounted to $4,161,075 which represents 3.7% of net assets.

2 Non-income producing security.

3 The cost of investments for federal tax purposes amounts to $94,370,986.

Note: The categories of investments are shown as a percentage of total net assets at May 31, 2003.

See Notes which are an integral part of the Financial Statements

Statement of Assets and Liabilities--Emerging Markets Fixed Income Core Fund

May 31, 2003 (unaudited)

Assets:
Total investments in securities, at value (identified cost $94,469,253)			$	109,093,828
Cash				29
Income receivable				2,107,818
Receivable for investments sold				60,664
TOTAL ASSETS				111,262,339
Liabilities:
Accrued expenses	$	22,479
TOTAL LIABILITIES				22,479
Net assets for 8,117,990 shares outstanding			$	111,239,860
Net Assets Consist of:
Paid in capital			$	82,840,678
Net unrealized appreciation of investments and translation of assets and liabilities in foreign currency				14,624,575
Accumulated net realized gain on investments and foreign currency transactions				3,394,857
Accumulated net investment income				10,379,750
TOTAL NET ASSETS			$	111,239,860
Net Asset Value, Offering Price and Redemption Proceeds Per Share:
Net asset value per share ($111,239,860 ÷ 8,117,990 shares outstanding)				$13.70

See Notes which are an integral part of the Financial Statements

Statement of Operations--Emerging Markets Fixed Income Core Fund

Six Months Ended May 31, 2003 (unaudited)

Investment Income:
Interest				$	4,317,993
Expenses:
Custodian fees	$	16,562
Transfer and dividend disbursing agent fees and expenses		10,154
Directors'/Trustees' fees		4,014
Auditing fees		8,777
Legal fees		3,252
Portfolio accounting fees		24,589
Insurance premiums		770
Professional service fee		12,902
Miscellaneous		525
TOTAL EXPENSES		81,545
Reimbursement:
Reimbursement of other operating expenses		(56,228	)
Net expenses					25,317
Net investment income					4,292,676
Realized and Unrealized Gain on Investments and Foreign Currency Transactions:
Net realized gain on investments and foreign currency transactions					1,134,407
Net change in unrealized depreciation of investments and translation of assets and liabilities in foreign currency					15,298,246
Net realized and unrealized gain on investments and foreign currency					16,432,653
Change in net assets resulting from operations				$	20,725,329

See Notes which are an integral part of the Financial Statements

Statement of Changes in Net Assets -- Emerging Markets Fixed Income Core Fund

	Six Months Ended (unaudited) 5/31/2003			Period Ended 11/30/2002		1
Increase (Decrease) in Net Assets
Operations:
Net investment income	$	4,292,676		$	6,087,074
Net realized gain on investments and foreign currency transactions		1,134,407			2,260,450
Net change in unrealized appreciation/depreciation of investments and translation of assets and liabilities in foreign currency		15,298,246			(673,671	)
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS		20,725,329			7,673,853
Share Transactions:
Proceeds from contributions		23,000,000			133,407,699
Fair value of withdrawals		(13,000,000	)		(60,567,021	)
CHANGE IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS		10,000,000			72,840,678
Change in net assets		30,725,329			80,514,531
Net Assets:
Beginning of period		80,514,531			--
End of period	$	111,239,860		$	80,514,531

1 For the period from January 14, 2002 (date of initial investment) to November 30, 2002.

See Notes which are an integral part of the Financial Statements

Notes to Financial Statements--Emerging Markets Fixed Income Core Fund

May 31, 2003 (unaudited)

ORGANIZATION

Emerging Markets Fixed Income Core Fund (the "Fund") is a non-diversified portfolio of Federated Core Trust II, L.P. (the "Trust"). The Trust is registered under the Investment Company Act of 1940, as amended (the "Act"). The Trust is a limited partnership that was established under the laws of the state of Delaware on November 13, 2000 and is offered only to registered investment companies and other accredited investors.

The Fund's investment objective is to achieve total return on assets and a high level of income, by investing in an unhedged portfolio of foreign, high-yield, fixed-income securities. Currently, the Fund is only available for purchase by other Federated funds and their affiliates.

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 ("GAAP").

Investment Valuation

Fixed income securities (government securities, asset back securities and other fixed income securities), listed corporate bonds, 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. With respect to valuation of foreign securities, trading in foreign cities may be completed at times that 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. 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. Securities for which no quotations are readily available, or whose values have been affected by a significant event occurring after the close of their primary markets, are valued at fair value as determined in good faith using methods approved by the Board of Trustees (the "Trustees").

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 the guidelines and/or standards reviewed or established by the Trustees. 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. All net income and gain/loss (realized and unrealized) will be allocated daily to the shareholders based on their capital contributions to the Fund. The Fund does not currently intend to declare and pay distributions.

Premium and Discount Amortization

All premiums and discounts on fixed income securities are amortized/accreted for financial reporting purposes.

Federal Taxes

As a partnership, the Fund is not subject to U.S. federal income tax. Instead, each investor reports separately on its own federal income tax return its allocated portion of the Fund's income, gains, losses, deductions and credits (including foreign tax credits for creditable foreign taxes imposed on the Fund).

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. 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 purpose as unrealized until the settlement date.

At May 31, 2003, the Fund had not outstanding foreign currency commitments.

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. 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 Trustees. 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 in good faith using methods approved by the Trustees.

Use of Estimates

The preparation of financial statements in conformity with GAAP 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.

CHANGE IN ACCOUNTING POLICY

Effective January 14, 2002, the Fund adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies (the "Guide"). For financial statement purposes, the revised Guide requires the Fund to amortize premium and discount on all fixed income securities.

Upon initial adoption, the Fund adjusted its cost of fixed income securities by the cumulative amount of amortization that would have been recognized had amortization been in effect from the purchase date of each holding with a corresponding reclassification between unrealized appreciation/depreciation on investments and undistributed net investment income. Adoption of these accounting principles does not affect the Fund's net asset value or distributions, but changes the classification of certain amounts between interest income and realized and unrealized gain/loss on the Statement of Operations. The cumulative effect to the Fund resulting from the adoption of premium and discount amortization on the financial statements is as follows:

	For the Period Ended 11/30/2002
	Net Investment Income	Net Unrealized Appreciation (Depreciation)	Net Realized Gain (Loss)
Increase (Decrease)	$108,955	$(71,193)	$(37,762)

CONTRIBUTIONS/WITHDRAWALS

Transactions in shares were as follows:

	Six Months Ended 5/31/2003		Period Ended 11/30/2002	1
Proceeds from contributions	1,863,046		13,036,698
Fair value of withdrawals	(1,074,757	)	(5,706,997	)
TOTAL CHANGE RESULTING FROM CONTRIBUTIONS/WITHDRAWALS	788,289		7,329,701

1 For the period from January 14, 2002 (date of initial investment) to November 30, 2002.

FEDERAL TAX INFORMATION

At May 31, 2003, the cost of investments for federal tax purposes was $94,370,986. The net unrealized appreciation of investments for federal tax purposes was $14,722,842. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $15,216,837 and net unrealized depreciation from investments for those securities having an excess of cost over value of $493,995.

The difference between book-basis and tax-basis unrealized appreciation/depreciation is attributable primarily to the amortization/accretion tax elections on fixed income securities.

INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Adviser Fee

Federated Investment Management Company is the Fund's investment adviser (the "Adviser") subject to the direction of the Trustees. The Adviser provides investment adviser services at no fee. The Adviser may voluntarily choose to reimburse certain operating expenses of the Fund. The Adviser can modify or terminate this reimbursement at any time at its sole discretion.

Administrative Fee

Federated Services Company ("FServ"), a subsidiary of Federated Investors, Inc., provides administrative personnel and services (including certain legal and financial reporting services) necessary to operate the Fund. FServ provides these services at no fee.

Transfer and Dividend Disbursing Agent Fees and Expenses

FServ, through its subsidiary Federated Shareholder Services Company ("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.

General

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

INVESTMENT TRANSACTIONS

Purchases and sales of investments, excluding long-term U.S. government securities and short-term obligations (and in-kind contributions), for the six months ended May 31 2003, were as follows:

Purchases	$	50,193,445
Sales	$	36,658,644

CONCENTRATION OF CREDIT RISK

Compared to diversified mutual funds, the Fund may invest a higher percentage of its assets among fewer issuers of portfolio securities. This increases the Fund's risk by magnifying the impact (positively or negatively) that any one issuer has on the Fund's share price and performance. 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 or volatility of portfolio securities and currency holdings.

At May 31, 2003, the diversification of countries was as follows:

Country	Percentage of Net Assets
Mexico	27.8%
Russia	21.6%
Brazil	18.4%
Venezuela	5.3%
Philippines	3.9%
Colombia	3.4%
Turkey	2.8%
South Africa	2.8%
Peru	1.9%
Bulgaria	1.8%
Malaysia	1.6%
Hong Kong	1.3%
El Salvador	1.3%
Panama	1.1%
Dominican Republic	1.0%
Tunisia	0.6%
Ukraine	0.5%

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.

IMPORTANT NOTICE ABOUT FUND DOCUMENT DELIVERY

In an effort to reduce costs and avoid duplicate mailings, the Fund(s) intend to deliver a single copy of certain documents to each household in which more than one shareholder of the Fund(s) resides (so-called "householding"), as permitted by applicable rules. The Fund's "householding" program covers its/their Prospectus and Statement of Additional Information, and supplements to each, as well as Semi-Annual and Annual Reports and any Proxies or information statements. Shareholders must give their written consent to participate in the householding program. The Fund is also permitted to treat a shareholder as having given consent ("implied consent") if (i) shareholders with the same last name, or believed to be members of the same family, reside at the same street address or receive mail at the same post office box, (ii) the Fund gives notice of its intent to "household" at least sixty (60) days before it begins "householding" and (iii) none of the shareholders in the household have notified the Fund(s) or their agent of the desire to "opt out" of householding. Shareholders who have granted written consent, or have been deemed to have granted implied consent, can revoke that consent and opt out of householding at any time by calling 1-800-341-7400.

Federated Investors
World-Class Investment Manager

Federated Strategic Income Fund
Federated Investors Funds
5800 Corporate Drive
Pittsburgh, PA 15237-7000
www.federatedinvestors.com

Contact us at 1-800-341-7400 or
www.federatedinvestors.com/contact

Federated Securities Corp., Distributor

Cusip 31417P502
Cusip 31417P601
Cusip 31417P700
Cusip 31417P809

Federated is a registered mark of Federated Investors, Inc. 2003 ©Federated Investors, Inc.

G00324-01 (7/03)

Item 2.     Code of Ethics

            Not Applicable

Item 3.     Audit Committee Financial Expert

            Not Applicable

Item 4.     Principal Accountant Fees and Services

            Not Applicable

Items 5-6   [Reserved]

Item 7.     Disclosure of Proxy Voting Policies and Procedures for
            Closed-End Management Investment Companies

            Not Applicable

Item 8.     [Reserved]

Item 9.     Controls and Procedures

(a)  The   registrant's   President  and  Treasurer   have  concluded  that  the
     registrant's  disclosure  controls and procedures (as defined in rule 30a-2
     under the  Investment  Company Act of 1940 (the  "Act")) are  effective  in
     design  and  operation  and  are  sufficient  to  form  the  basis  of  the
     certifications  required  by Rule  30a-2  under  the  Act,  based  on their
     evaluation of these  disclosure  controls and procedures  within 90 days of
     the filing date of this report on Form N-CSR.

(b)  There were no significant changes in the registrant's internal controls, or
     the internal  controls of its service  providers,  or in other factors that
     could  significantly  affect these controls subsequent to the date of their
     evaluation,  including any  corrective  actions with regard to  significant
     deficiencies and material weaknesses.

Item 10.    Exhibits




SIGNATURES

Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.

Registrant  Federated Fixed Income Securities, Inc.

By          /S/ Richard J. Thomas, Principal Financial Officer

Date        July 28, 2003

Pursuant to the  requirements  of the  Securities  Exchange  Act of 1934 and the
Investment  Company  Act of  1940,  this  report  has been  signed  below by the
following  persons on behalf of the  registrant and in the capacities and on the
dates indicated.


By          /S/ J. Christopher Donahue, Principal Executive Officer


Date        July 28, 2003


By          /S/ Richard J. Thomas, Principal Financial Officer


Date        July 28, 2003