N-Q 1 form.htm FWISI4848FORM form.htm

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

Form N-Q
Quarterly Schedule of Portfolio Holdings of Registered Management Investment Companies




811-7141

(Investment Company Act File Number)


Federated World Investment Series, Inc.
_______________________________________________________________

(Exact Name of Registrant as Specified in Charter)



Federated Investors Funds
5800 Corporate Drive
Pittsburgh, Pennsylvania 15237-7000
(Address of Principal Executive Offices)


(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:  11/30/08


Date of Reporting Period:  Quarter ended 2/29/08







Item 1.                      Schedule of Investments



Federated International High Income Fund
 
Portfolio of Investments
 
February 29, 2008 (unaudited)
 
 
Shares or
Foreign
Currency
Par Amount
       
Value in
U.S. Dollars
     
COMMON STOCKS--0.5%
     
     
Telecommunications & Cellular--0.5%
     
 
1,285,485
1
Jazztel PLC
 
$
585,468
 
2,500
1
Satelites Mexicanos SA de CV, Class INS
   
125,000
     
TOTAL COMMON STOCKS (IDENTIFIED COST $2,361,575)
   
710,468
     
CORPORATE BONDS--26.6%
     
     
Aerospace & Defense--0.7%
     
$
1,000,000
 
Embraer Overseas Ltd., Sr. Unsecd. Note, 6.375%, 1/24/2017
   
977,500
     
Banking--3.8%
     
 
1,750,000
2,3
Banco Credito del Peru, Sub. Note, 6.95%, 11/7/2021
   
1,874,039
 
2,000,000
2,3
ICICI Bank Ltd., Note, Series 144A, 6.625%, 10/3/2012
   
1,997,360
 
500,000
2,3
Kazkommerts International BV, Company Guarantee, Series 144A, 8.00%, 11/3/2015
   
411,250
 
1,500,000
2,3
VTB Capital SA, Bond, 6.25%, 6/30/2035
   
1,452,900
     
TOTAL
   
5,735,549
     
Broadcast Radio & TV--2.0%
     
 
2,500,000
 
Grupo Televisa S.A., Sr. Note, 8.50%, 3/11/2032
   
3,008,250
     
Building Materials--0.7%
     
 
1,000,000
2,3
Votorantim Overseas IV, Note, Series 144A, 7.75%, 6/24/2020
   
1,068,500
     
Cable & Wireless Television--0.5%
     
 
1,210,424
 
Satelites Mexicanos SA, Sr. Note, 10.125%, 11/30/2013
   
792,828
     
Container & Glass Products--1.5%
     
 
1,300,000
 
Vitro SA, Note, 11.75%, 11/1/2013
   
1,355,250
 
1,000,000
 
Vitro SA, Sr. Unsecd. Note, 9.125%, 2/1/2017
   
883,500
     
TOTAL
   
2,238,750
     
Hotels, Motels, Inns & Casinos--1.0%
     
 
1,500,000
2,3
Grupo Posadas SA de C.V., Sr. Note, 8.75%, 10/4/2011
   
1,563,750
     
Metals & Mining--2.6%
     
 
2,000,000
 
Alrosa Finance SA, Company Guarantee, 8.875%, 11/17/2014
   
2,165,600
 
1,750,000
 
Vale Overseas Ltd., 6.875%, 11/21/2036
   
1,655,762
     
TOTAL
   
3,821,362
     
Oil & Gas--7.8%
     
 
2,960,000
2,3
Gazprom, Note, Series 144A, 8.625%, 4/28/2034
   
3,443,960
 
2,200,000
2,3
Gazprom, Note, Series 144A, 9.625%, 3/1/2013
   
2,510,640
 
1,250,000
2,3
Gazprom, Series 144A, 5.03%, 2/25/2014
   
1,719,401
 
3,000,000
2,3
Petrozuata Finance, Inc., Company Guarantee, Series 144A, 8.22%, 4/1/2017
   
3,015,000
 
1,000,000
2,3
Transportadora de Gas de Sur S.A., Series 144A, 7.875%, 5/14/2017
   
862,500
     
TOTAL
   
11,551,501
     
Sovereign--2.2%
     
 
3,000,000
 
United Mexican States, Series MTNA, 6.75%, 9/27/2034
   
3,313,500
     
State/Provincial--0.3%
     
 
1,000,000,000
2,3
Bogota Distrito Capital, Sr. Note, Series 144A, 9.75%, 7/26/2028
   
471,052
     
Steel--2.4%
     
 
1,200,000
2,3
CSN Islands IX Corp., Sr. Note, Series 144A, 10.50%, 1/15/2015
   
1,428,000
 
1,825,000
2,3
CSN Islands VIII Corp., Company Guarantee, Series 144A, 9.75%, 12/16/2013
   
2,089,625
     
TOTAL
   
3,517,625
     
Telecommunications & Cellular--0.4%
     
 
5,500,000
 
America Movil S.A.B. de C.V., Bond, 9.00%, 1/15/2016
   
539,526
     
Utilities--0.7%
     
 
1,000,000
2,3
ISA Capital DO Brasil SA, Series 144A, 8.80%, 1/30/2017
   
1,052,500
     
TOTAL CORPORATE BONDS (IDENTIFIED COST $38,425,582)
   
39,652,193
     
FLOATING RATE LOANS—1.6%
     
 
900,000
4
Carolbrl, 4.051%, 3/3/2008
   
895,500
 
1,500,000
4
National Factoring Co., 4.625%, 3/28/2008
   
1,486,875
     
TOTAL FLOATING RATE LOANS (IDENTIFIED COST $2,393,333)
   
2,382,375
     
GOVERNMENTS/AGENCIES--65.2%
     
     
Sovereign--65.2%
     
 
2,217,777
 
Argentina, Government of, Note, 8.28%, 12/31/2033
   
1,964,950
 
6,837,000
 
Brazil Nota Do Tesouro Nacional, Note, 6.00%, 5/15/2011
   
6,743,895
 
5,875,000
 
Brazil, Government of, 6.00%, 1/17/2017
   
6,051,250
 
2,000,000
 
Colombia, Government of, 8.25%, 12/22/2014
   
2,311,000
 
2,821,000,000
 
Colombia, Government of, 9.85%, 6/28/2027
   
1,416,558
 
2,400,000
 
Colombia, Government of, Note, 7.375%, 1/27/2017
   
2,644,320
 
1,200,000
 
El Salvador, Government of, Bond, 7.75%, 1/24/2023
   
1,338,000
 
12,415
5
Letra Tesouro Nacional, 11.210%, 4/1/2008
   
7,279,781
 
3,200,000
 
Mexico, Government of, Note, 8.125%, 12/30/2019
   
4,015,040
 
1,376,000
 
Peru, Government of, 6.55%, 3/14/2037
   
1,417,280
 
3,110,000
 
Philippines, Government of, 9.00%, 2/15/2013
   
3,599,825
 
1,250,000
 
Philippines, Government of, 9.875%, 1/15/2019
   
1,598,437
 
1,600,000
 
Philippines, Government of, Bond, 9.50%, 10/21/2024
   
2,038,000
 
1,400,000
 
Philippines, Government of, Note, 8.25%, 1/15/2014
   
1,586,200
 
2,900,000
 
Republic of Ecuador, 10.00%, 8/15/2030
   
2,842,000
 
2,237,000
 
Republica Oriental del Uruguay, 7.625%, 3/21/2036
   
2,307,466
 
10,296,000
2,3
Russia, Government of, Unsub., 7.50%, 3/31/2030
   
11,795,612
 
3,760,000
 
Turkey, Government of, 10.00%, 2/15/2012
   
3,342,565
 
1,600,000
 
Turkey, Government of, 6.75%, 4/3/2018
   
1,626,000
 
3,280,000
 
Turkey, Government of, 6.875%, 3/17/2036
   
3,058,600
 
3,000,000
 
Turkey, Government of, 7.00%, 9/26/2016
   
3,157,500
 
3,500,000
 
Turkey, Government of, Note, 7.375%, 2/5/2025
   
3,583,125
 
9,500,000
 
United Mexican States, Note, 5.625%, 1/15/2017
   
9,911,350
 
1,950,000
 
United Mexican States, Note, 6.05%, 1/11/2040
   
1,937,813
 
2,150,000
 
Venezuela, Government of, 9.375%, 1/13/2034
   
2,112,375
 
3,750,000
 
Venezuela, Government of, Bond, 9.25%, 9/15/2027
   
3,693,750
 
4,300,000
 
Venezuela, Government of, Note, 7.65%, 4/21/2025
   
3,721,650
     
TOTAL GOVERNMENT/AGENCIES (IDENTIFIED COST $92,819,900)
   
97,094,342
     
MUTUAL FUND--4.1%
     
 
6,118,299
6,7
Prime Value Obligations Fund, Institutional Shares, 3.57%
(AT NET ASSET VALUE)
   
6,118,299
     
TOTAL INVESTMENTS—98.0%
(IDENTIFIED COST $142,118,689)8
   
145,957,677
     
OTHER ASSETS AND LIABILITIES – NET—2.0%9
   
3,025,047
     
TOTAL NET ASSETS—100%
 
$
148,982,724

 
 

 

 
At February 29, 2008, the Fund had the following outstanding credit default swap contracts:
 
Credit Default Swap
Counterparty
Reference Entity
Buy/Sell
Pay/ Receive
Fixed Rate
Expiration Date
Notional Amount
Unrealized
Appreciation/
(Depreciation)
 
Lehman Brothers, Inc./Merrill Lynch, Pierce, Fenner & Smith
Government of Turkey
Buy
2.35%
2/20/2013
$5,360,000
$   21,230
 
Goldman Sachs & Co.
Government of Turkey
Buy
2.38%
2/20/2013
$2,680,000
$7,074
 
Citibank N.A., New York
Government of Brazil
Buy
1.52%
2/20/2013
$3,000,000
$(9,634)
 
NET UNREALIZED APPRECIATION ON SWAP CONTRACTS
$18,670

 
 
At February 29, 2008, the Fund had outstanding foreign exchange contracts as follows:
 
Settlement Date
 
Foreign Currency
Units to Receive
In Exchange For
Unrealized Appreciation/
(Depreciation)
 
Contracts Purchased:
     
 
3/3/2008
538,848,000 Hungarian Forint
$3,096,828
$(4,471)
 
3/3/2008
3,961,650 New Turkish Lira
$3,274,091
$(28,167)
 
3/4/2008
24,002,072 Brazilian Real
$14,391,457
$(198,286)
 
3/10/2008
544,722,000 Hungarian Forint
$2,989,036
$133,157
 
Contracts Sold:
     
 
3/3/2008
538,848,000 Hungarian Forint
$3,009,147
$(82,059)
 
3/3/2008
3,961,650 New Turkish Lira
$3,276,935
$34,327
 
3/4/2008
24,002,072 Brazilian Real
$13,419,099
$(764,873)
 
3/4/2008
3,927,907 Euro
628,661,453 JPY
$90,309
 
3/6/2008
3,604,000,000 Colombian Peso
$1,888,394
$(68,363)
 
3/10/2008
538,848,000 Hungarian Forint
$3,093,627
$5,102
 
3/10/2008
544,722,000 Hungarian Forint
$3,000,000
$(122,193)
 
3/10/2008
3,961,650 New Turkish Lira
$3,266,532
$31,638
 
3/11/2008
3,983,850  Euro
628,661,453 JPY
$9,332
 
3/26/2008
1,000,000 Euro
$1,479,244
$(37,741)
 
NET UNREALIZED DEPRECIATION ON FOREIGN EXCHANGE CONTRACTS
$(1,002,288)

Net Unrealized Appreciation/Depreciation on swap contracts and currency forwards is included in “Other Assets and Liabilities – Net”.

1
Non-income producing security.
2
Denotes a restricted security that either: (a) cannot be offered for public sale without first being registered, or being able to take advantage of an exemption from registration, under the Securities Act of 1933; or (b) is subject to a contractual restriction on public sales. At February 29, 2008, these restricted securities amounted to $36,756,089, which represented 24.7% of total net assets.
3
Denotes a restricted security that may be resold without restriction to “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933 and that the Fund has determined to be liquid under criteria established by the Fund’s Board of Directors. At February 29, 2008, these liquid restricted securities amounted to $36,756,089, which represented 24.7% of total net assets.
4
The rate shown represents a weighted average coupon rate on settled positions at year end.  Remaining maturities of floating rate loans may be less than stated maturities shown as a result of contractual or optional prepayments by the borrower. Such prepayments cannot be predicted with certainty.  These loans may be subject to restrictions on resale.  Floating rate loans generally have rates of interest which are determined periodically by reference to a base lending rate plus a premium.
5
Zero coupon bond, reflects effective rate at time of purchase.
6
Affiliated company.
7
7-Day net yield.
8
At February 29, 2008, the cost of investments for federal tax purposes was $142,275,298. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation/depreciation resulting from changes in foreign currency exchange rates and swap contracts was $3,682,379. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $7,534,794 and net unrealized depreciation from investments for those securities having an excess of cost over value of $3,852,415.
9
Assets, other than investments in securities, less liabilities.

 
Note: The categories of investments are shown as a percentage of total net assets at February 29, 2008.

 
Investment Valuation
 

In calculating its net asset value (NAV), the Fund generally values investments as follows:
 
·  
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Directors (the “Directors”).
 
·  
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
 
·  
Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
 
·  
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
 
·  
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Directors.
 
·  
Shares of other mutual funds are valued based upon their reported NAVs.
 
If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund’s NAV.
 
 
Fair Valuation and Significant Events Procedures
 
The Directors have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV.  Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions.  Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation).  Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation).  The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities.  The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts.  In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Directors.
 
The Directors also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
 

 
·  
With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
 
·  
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
 
·  
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
 
·  
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
 
The Directors have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Directors.
 

Various inputs are used in determining the value of the Fund’s investments.  These inputs are summarized in the three broad levels listed below:
·  
Level 1 – quoted prices in active markets for identical securities
·  
Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
·  
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of February 29, 2008, in valuing the Fund’s assets carried at fair value:

 
 
Valuation Inputs
Investments in
Securities
Other Financial
Instruments*
Level 1 – Quoted Prices
$6,703,767
$(1,002,288)
Level 2 – Other Significant Observable Inputs
$139,253,910
$18,670
Level 3 – Significant Unobservable Inputs
 
0
 
0
    Total
$145,957,677
$(983,618)

* Other financial instruments include currency forwards and swap contracts..
 

 
 
 

Federated International Small Company Fund
 
Portfolio of Investments
 
February 29, 2008 (unaudited)
 
 
Shares
       
Value

     
COMMON STOCKS--98.6%
     
     
Automobiles & Components--1.3%
     
 
190,350
 
Nokian Renkaat Oyj
 
$
7,852,738
     
Banks--1.4%
     
 
289,361
 
Bank of Cyprus Public Co. Ltd.
   
3,484,148
 
291,247
 
Commercial International Bank Egypt
   
4,910,040
     
TOTAL
   
8,394,188
     
Capital Goods--25.3%
     
 
278,349
 
Abengoa SA
   
9,465,358
 
126,400
 
Andritz AG
   
7,053,192
 
49,730
 
Arcadis NV
   
3,048,781
 
1,443,609
 
Ashtead Group PLC
   
2,167,431
 
48,773
 
Bauer AG
   
3,068,087
 
21,800
 
Bekaert NV
   
2,872,257
 
180,004
 
Boskalis Westminster
   
9,946,422
 
97,209
 
Carbone Lorraine
   
4,045,896
 
506,000
 
Chiyoda Corp.
   
5,082,639
 
643,531
 
Fenner PLC
   
3,291,374
 
257,013
 
Gamesa Corporacion Tecnologica SA
   
10,433,802
 
3,587,500
 
Gamuda BHD
   
4,369,409
 
315,182
 
Haulotte Group
   
6,640,455
 
1,436,350
 
IJM Corp. Berhad
   
3,229,699
 
372,000
 
JGC Corp.
   
6,014,442
 
128,350
 
Konecranes Oyj
   
4,680,108
 
97,544
 
MTU Aero Engines GmbH
   
4,941,171
 
5,886,900
1
Malaysian Res Cp
   
3,645,094
 
31,137
 
Nexans SA
   
3,409,309
 
99,230
 
Obrascon Huarte Lain, SA
   
3,323,340
 
243,681
1
Prysmian SpA
   
4,740,423
 
85,326
1
Q-Cells AG
   
6,796,065
 
173,131
1
SGL Carbon AG
   
9,493,760
 
105,200
 
SNC-Lavalin Group, Inc.
   
4,598,124
 
2,972,200
 
Sembcorp Marine Ltd.
   
7,613,605
 
134,304
 
Solarworld AG
   
5,989,003
 
3,893
 
Sulzer AG
   
4,477,290
 
74,645
 
Tecnicas Reunidas SA
   
5,081,641
 
2,136,600
 
Zelan Bhd
   
2,203,567
 
50,100
 
Zodiac SA
   
2,608,490
     
TOTAL
   
154,330,234
     
Consumer Durables & Apparel--4.0%
     
 
4,377,000
1
China Dongxiang Group Co.
   
2,474,733
 
4,847,000
 
China Hongxing Sports Ltd.
   
2,200,077
 
378,340
 
Geox SpA
   
5,544,352
 
291,443
1
Gildan Activewear, Inc.
   
10,990,316
 
53,442
 
Tod's SpA
   
3,261,878
     
TOTAL
   
24,471,356
     
Consumer Services--4.1%
     
 
209,895
 
Intralot SA
   
3,903,518
 
16,742
 
MegaStudy Co. Ltd.
   
5,805,891
 
174,431
 
Punch Taverns PLC
   
2,218,344
 
3,299,000
 
Raffles Education Corp. Ltd.
   
6,188,057
 
659,200
 
Rezidor Hotel Group AB
   
3,998,208
 
190,945
 
Sol Melia SA
   
2,880,584
     
TOTAL
   
24,994,602
     
Diversified Financials--2.9%
     
 
167,750
 
Arques Industries AG
   
3,520,533
 
33,240
 
Partners Group
   
4,538,093
 
76,400
 
TSX Group, Inc.
   
3,437,127
 
85,700
1
Vostok Gas Ltd., GDR
   
6,281,481
     
TOTAL
   
17,777,234
     
Energy--10.5%
     
 
555,500
 
Banpu Public Co. Ltd., GDR
   
8,347,056
 
9,521,000
1
Bumi Resources Tbk
   
7,864,554
 
545,389
1
Dragon Oil PLC
   
4,894,554
 
233,774
 
ERG SPA
   
4,497,248
 
106,600
 
Fred Olsen Energy ASA
   
5,963,286
 
101,600
 
Fugro NV
   
7,658,292
 
4,350,000
 
PT Tambang Batubara Bukit Asam Tbk
   
5,373,355
 
738,600
1
Paladin Resources Ltd.
   
4,142,313
 
120,680
 
SBM Offshore NV
   
3,886,409
 
2,306,000
1
Swiber Holdings Ltd.
   
3,922,546
 
941,900
 
Wood Group (John) PLC
   
7,712,937
     
TOTAL
   
64,262,550
     
Food, Beverage & Tobacco--4.2%
     
 
482,400
 
Davide Campari - Milano SpA
   
4,128,954
 
44,242
 
Hite Brewery Co.
   
5,495,018
 
1,247,000
 
Kuala Lumpur Kepong Bhd
   
7,164,580
 
2,105
 
Lindt & Spruengli AG
   
7,021,674
 
3,405,000
 
Synear Food Holdings Ltd.
   
1,604,090
     
TOTAL
   
25,414,316
     
Health Care Equipment & Services--1.9%
     
 
70,800
 
China Medical Technologies, Inc., ADR
   
3,256,800
 
204,888
 
Getinge AB, Class B
   
5,217,500
 
204,888
1
Getinge AB Rights, Rights
   
78,917
 
419,142
 
Southern Cross Healthcare Ltd.
   
3,219,324
     
TOTAL
   
11,772,541
     
Household & Personal Products--0.8%
     
 
1,220,000
 
Hengan Intlernational Group Co. Ltd.
   
4,797,224
     
Insurance--0.7%
     
 
125,300
 
Industrial Alliance Life Insurance Co.
   
4,481,138
     
Materials--15.7%
     
 
248,200
 
Agrium, Inc.
   
18,368,187
 
480,000
 
Aquarius Platinum Ltd.
   
7,214,261
 
62,144
 
Boehler-Uddeholm AG
   
6,345,446
 
5,710,000
1
China Energy Ltd.
   
3,567,675
 
6,425,000
1
China XLX Fertiliser Ltd.
   
3,962,003
 
4,408,000
1
Hidili Industry International Development Ltd.
   
7,622,745
 
198,200
1
HudBay Minerals, Inc.
   
3,785,786
 
69,211
 
K&S AG
   
19,794,710
 
475,635
1
Lundin Mining Corp.
   
4,064,100
 
800,000
 
Tubacex Esp Tubos
   
7,461,465
 
265,000
 
Umicore
   
13,486,948
     
TOTAL
   
95,673,326
     
Media--0.9%
     
 
56,597
1
Central European Media Enterprises Ltd., Class A
   
5,202,396
     
Pharmaceuticals, Biotechnology & Life Sciences--6.5%
     
 
177,250
1
Actelion Ltd.
   
9,260,099
 
314,072
1
Grifols SA
   
7,164,002
 
71,700
1
ICON PLC, ADR
   
4,739,370
 
70,873
 
Ipsen SA
   
4,285,531
 
209,054
1
Laboratorios Almirall SA
   
4,406,180
 
230,056
1
Qiagen NV
   
5,100,404
 
67,525
 
Stada Arzneimittel AG
   
4,746,749
     
TOTAL
   
39,702,335
     
Real Estate--3.5%
     
 
34,600
1
E-House China Holdings Ltd., ADR
   
562,596
 
1,916,000
 
Great Eagle Holdings
   
5,802,430
 
4,430,500
1
KWG Property Holding Ltd.
   
4,352,963
 
6,390,000
 
Mah Sing Group Bhd
   
3,667,228
 
28,876
 
Orco Property
   
2,942,180
 
2,579,700
 
S P Setia Berhad Group
   
3,972,802
     
TOTAL
   
21,300,199
     
Retailing--2.0%
     
 
1,069
 
Dena Co. Ltd.
   
6,924,556
 
1,394,595
 
Game Group PLC
   
5,151,258
     
TOTAL
   
12,075,814
     
Software & Services--6.9%
     
 
448,336
1
Autonomy Corp. PLC
   
8,333,029
 
195,800
 
Capcom Co. Ltd.
   
5,366,136
 
375,600
1
Giant Interactive Group, Inc., ADR
   
3,909,996
 
440,811
 
Indra Sistemas SA
   
12,214,033
 
145,400
 
Square Enix Co. Ltd.
   
4,833,857
 
87,569
1
UbiSoft Entertainment SA
   
7,337,124
     
TOTAL
   
41,994,175
     
Technology, Hardware & Equipment--2.8%
     
 
43,472
 
EVS Broadcast Equipment SA
   
4,456,242
 
153,700
1
NICE-Systems Ltd., ADR
   
4,961,436
 
75,850
 
Neopost SA
   
7,854,111
     
TOTAL
   
17,271,789
     
Transportation--2.5%
     
 
4,411,200
1
Airasia BHD
   
2,134,775
 
1,692,000
 
Cosco Corp (Singapore) Ltd.
   
4,778,872
 
1,676,000
1
Malaysian Airline System
   
2,141,666
 
35,469
 
Panalpina Welttransport Holding AG
   
5,940,721
     
TOTAL
   
14,996,034
     
Utilities--0.7%
     
 
1,864,300
 
YTL Corp., Bhd
   
4,461,956
     
TOTAL COMMON STOCKS (IDENTIFIED COST $451,328,183)
   
601,226,145
     
MUTUAL FUND-1.4%
     
 
8,691,363
2,3
Prime Value Obligations Fund, Institutional Shares, 3.57%                                                              (AT NET ASSET VALUE)
   
8,691,363
     
TOTAL INVESTMENTS—100.0%                                                                                  (IDENTIFIED COST $460,019,546)4
   
609,917,508
     
OTHER ASSETS AND LIABILITIES---NET—(0.0)%5
   
(199,138)
     
TOTAL NET ASSETS---100%
 
$
609,718,370

1
Non-income producing security.
2
Affiliated company.
3
7-Day net yield.
4
At February 29, 2008, the cost of investments for federal tax purposes was $460,019,546. The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation resulting from changes in foreign currency exchange rates was $149,897,962. This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $189,651,657 and net unrealized depreciation from investments for those securities having an excess of cost over value of $39,753,695.
5
Assets, other than investments in securities, less liabilities.


 
Note:         The categories of investments are shown as a percentage of total net assets at February 29, 2008.

Investment Valuation
In calculating its net asset value (NAV), the Fund generally values investments as follows:
·  
Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
·  
Shares of other mutual funds are valued based upon their reported NAVs.
·  
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Directors (the “Directors”).
·  
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
·  
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
·  
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Directors.
 
If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund’s NAV.
 
Fair Valuation and Significant Events Procedures
The Directors have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV. Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions. Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation). Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation). The Fund normally uses bid evaluations for U.S. Treasury and Agency securities, mortgage-backed securities and municipal securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts. In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is
determined in accordance with procedures adopted by the Directors.
The Directors also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
·  
With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
·  
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
·  
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
·  
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
The Directors have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Directors.

Various inputs are used in determining the value of the Fund’s investments.  These inputs are summarized in the three broad levels listed below:

·  
Level 1 – quoted prices in active markets for identical securities
·  
Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
·  
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of February 29, 2008, in valuing the Fund’s assets carried at fair value:

 
 
Valuation Inputs
Investments in
Securities
Level 1 – Quoted Prices
$85,191,048
Level 2 – Other Significant Observable Inputs
 
524,726,460
Level 3 – Significant Unobservable Inputs
 
0
    Total
$609,917,508

 
The following acronyms are used throughout this portfolio:
 
ADR
--American Depositary Receipt
GDR
--Global Depository Receipt


 
 

Federated International Value Fund
 
Portfolio of Investments
 
February 29, 2008 (unaudited)
 
 
Shares
       
Value in
U.S. Dollars
     
COMMON STOCKS--94.8%
     
     
Automobiles & Components--2.9%
     
 
78,945
 
Bayerische Motoren Werke AG
 
$
4,321,524
     
Banks--8.0%
     
 
22,770
 
BNP Paribas SA
   
2,045,439
 
158,423
 
Banco Santander Central Hispano, SA
   
2,831,706
 
342,116
 
HSBC Holdings PLC
   
5,208,234
 
245,898
 
Unicredito Italiano SpA
   
1,804,132
     
TOTAL
   
11,889,511
     
Commercial Services & Supplies--3.7%
     
 
67,142
 
Adecco SA
   
3,515,396
 
370,050
 
Michael Page International PLC
   
2,044,610
     
TOTAL
   
5,560,006
     
Consumer Durables & Apparel--3.6%
     
 
66,383
 
Compagnie Financiere Richemont AG
   
3,832,602
 
25,700
 
Tod's SpA
   
1,568,621
     
TOTAL
   
5,401,223
     
Consumer Services--3.5%
     
 
33,967
 
Accor SA
   
2,410,889
 
92,115
 
InterContinental Hotels Group PLC
   
1,403,011
 
236,873
 
Ladbrokes PLC
   
1,429,012
     
TOTAL
   
5,242,912
     
Diversified Financials--15.2%
     
 
68,152
 
Credit Suisse Group
   
3,346,678
 
204,044
 
Invesco PLC
   
5,225,567
 
76,120
 
Janus Capital Group, Inc.
   
1,843,626
 
85,556
 
Julius Baer Holding Ltd., Zurich, Class B
   
6,333,540
 
21,995
 
Morgan Stanley
   
926,429
 
162,600
 
Schroders PLC
   
3,065,690
 
57,915
 
UBS AG
   
1,896,341
     
TOTAL
   
22,637,871
     
Energy--5.1%
     
 
37,600
 
Tidewater, Inc.
   
2,111,240
 
18,000
 
Total SA, Class B
   
1,359,208
 
29,641
1
Transocean Sedco Forex, Inc.
   
4,164,857
     
TOTAL
   
7,635,305
     
Food Beverage & Tobacco--11.7%
     
 
348,295
 
Cadbury Schweppes PLC
   
3,869,363
 
238,914
 
Diageo PLC
   
4,878,631
 
31,134
 
Heineken NV
   
1,755,503
 
10,000
 
Nestle SA
   
4,779,414
 
20,640
 
Pernod-Ricard
   
2,196,543
     
TOTAL
   
17,479,454
     
Household & Personal Products--1.1%
     
 
13,500
 
L'Oreal SA
   
1,599,641
     
Insurance--7.5%
     
 
68,118
 
AXA
   
2,296,853
 
717,010
 
Benfield Group PLC
   
3,798,773
 
56,714
 
Sun Life Financial Services of Canada
   
2,710,929
 
72,500
 
Willis Group Holdings Ltd.
   
2,381,625
     
TOTAL
   
11,188,180
     
Materials--4.1%
     
 
49,300
 
Akzo Nobel NV
   
3,610,160
 
2,431
 
Givaudan SA
   
2,441,318
     
TOTAL
   
6,051,478
     
Media--8.6%
     
 
53,500
 
Asatsu, Inc.
   
1,725,098
 
48,400
 
Corus Entertainment, Inc., Class B
   
991,358
 
161,600
 
Grupo Televisa SA, GDR
   
3,555,200
 
80,249
 
Vivendi SA
   
3,168,792
 
285,619
 
WPP Group PLC
   
3,355,492
     
TOTAL
   
12,795,940
     
Pharmaceuticals Biotechnology & Life Sciences--7.8%
     
 
196,568
 
GlaxoSmithKline PLC
   
4,309,739
 
92,197
 
Novartis AG
   
4,531,416
 
49,700
 
Takeda Pharmaceutical Co., Ltd.
   
2,762,656
     
TOTAL
   
11,603,811
     
Real Estate--1.5%
     
 
132,086
 
Sun Hung Kai Properties
   
2,304,506
     
Retailing--1.8%
     
 
329,212
 
JJB Sports PLC
   
797,024
 
1,525,389
 
Signet Group PLC
   
1,833,398
     
TOTAL
   
2,630,422
     
Semiconductors & Semiconductor Equipment--2.7%
     
 
6,746
 
Samsung Electronics Co.
   
3,960,330
     
Telecommunication Services--3.3%
     
 
1,526,862
 
Vodafone Group PLC
   
4,900,328
     
Transportation--2.7%
     
 
78,200
 
Grupo Aeroportuario del Sureste SAB de CV, Class B, ADR
   
4,060,144
     
TOTAL COMMON STOCKS (IDENTIFIED COST $108,395,578)
   
141,262,586
     
EXCHANGE TRADED FUND--5.0%
     
 
599,612
 
iShares MSCI Japan (IDENTIFIED COST $6,821,089)
   
7,513,138
     
MUTUAL FUND—0.3%
     
 
382,666
2,3
Prime Value Obligations Fund, Institutional Shares, 3.57% (AT NET ASSET VALUE)
   
382,666
     
TOTAL INVESTMENTS --- 100.1%
(IDENTIFIED COST $115,599,333)4
   
149,158,390
     
OTHER ASSETS AND LIABILITIES — NET— (0.1%)5
   
(92,775)
     
TOTAL NET ASSETS --- 100%
 
$
149,065,615

1
Non-income producing security.
2
Affiliated company.
3
7-Day net yield.
4
At February 29, 2008, the cost of investments for federal tax purposes was $115,599,333.  The net unrealized appreciation of investments for federal tax purposes excluding any unrealized appreciation resulting from changes in foreign currency exchange rates was $33,559,057.  This consists of net unrealized appreciation from investments for those securities having an excess of value over cost of $43,017,346 and net unrealized depreciation from investments for those securities having an excess of cost over value of $9,458,289.
5
Assets, other than investments in securities, less liabilities.

 
Note: The categories of investments are shown as a percentage of total net assets at February 29, 2008.

 
Investment Valuation
 
In calculating its net asset value (NAV), the Fund generally values investments as follows:
 
·  
Equity securities listed on an exchange or traded through a regulated market system are valued at their last reported sale price or official closing price in their principal exchange or market.
 
·  
Shares of other mutual funds are valued based upon their reported NAVs.
 
·  
Derivative contracts listed on exchanges are valued at their reported settlement or closing price.
 
·  
Over-the-counter (OTC) derivative contracts are fair valued using price evaluations provided by a pricing service approved by the Directors.
 
·  
Fixed-income securities acquired with remaining maturities greater than 60 days are fair valued using price evaluations provided by a pricing service approved by the Board of Directors (the “Directors”).
 
·  
Fixed-income securities acquired with remaining maturities of 60 days or less are valued at their cost (adjusted for the accretion of any discount or amortization of any premium).
 
If the Fund cannot obtain a price or price evaluation from a pricing service for an investment, the Fund may attempt to value the investment based upon the mean of bid and asked quotations or fair value the investment based on price evaluations, from one or more dealers. If any price, quotation, price evaluation or other pricing source is not readily available when the NAV is calculated, the Fund uses the fair value of the investment determined in accordance with the procedures described below. There can be no assurance that the Fund could purchase or sell an investment at the price used to calculate the Fund’s NAV.
 
 
Fair Valuation and Significant Events Procedures
 
The Directors have authorized the use of pricing services to provide evaluations of the current fair value of certain investments for purposes of calculating the NAV.  Factors considered by pricing services in evaluating an investment include the yields or prices of investments of comparable quality, coupon, maturity, call rights and other potential prepayments, terms and type, reported transactions, indications as to values from dealers, and general market conditions.  Some pricing services provide a single price evaluation reflecting the bid-side of the market for an investment (a “bid” evaluation).  Other pricing services offer both bid evaluations and price evaluations indicative of a price between the prices bid and asked for the investment (a “mid” evaluation).  The Fund normally uses bid evaluations for U.S. Treasury and Agency securities and mortgage-backed securities. The Fund normally uses mid evaluations for other types of fixed-income securities and OTC derivative contracts.  In the event that market quotations and price evaluations are not available for an investment, the fair value of the investment is determined in accordance with procedures adopted by the Directors.
 
The Directors also have adopted procedures requiring an investment to be priced at its fair value whenever the Adviser determines that a significant event affecting the value of the investment has occurred between the time as of which the price of the investment would otherwise be determined and the time as of which the NAV is computed. An event is considered significant if there is both an affirmative expectation that the investment’s value will change in response to the event and a reasonable basis for quantifying the resulting change in value. Examples of significant events that may occur after the close of the principal market on which a security is traded, or after the time of a price evaluation provided by a pricing service or a dealer, include:
 
·  
With respect to securities traded in foreign markets, significant trends in U.S. equity markets or in the trading of foreign securities index futures or options contracts;
 
·  
With respect to price evaluations of fixed-income securities determined before the close of regular trading on the NYSE, actions by the Federal Reserve Open Market Committee and other significant trends in U.S. fixed-income markets;
 
·  
Political or other developments affecting the economy or markets in which an issuer conducts its operations or its securities are traded; and
 
·  
Announcements concerning matters such as acquisitions, recapitalizations, litigation developments, a natural disaster affecting the issuer’s operations or regulatory changes or market developments affecting the issuer’s industry.
 
The Directors have approved the use of a pricing service to determine the fair value of equity securities traded principally in foreign markets when the Adviser determines that there has been a significant trend in the U.S. equity markets or in index futures trading. For other significant events, the Fund may seek to obtain more current quotations or price evaluations from alternative pricing sources. If a reliable alternative pricing source is not available, the Fund will determine the fair value of the investment using another method approved by the Directors.
 

Various inputs are used in determining the value of the Fund’s investments.  These inputs are summarized in the three broad levels listed below:

·  
Level 1 – quoted prices in active markets for identical securities
·  
Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
·  
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used, as of February 29, 2008, in valuing the Fund’s assets carried at fair value:

 
 
Valuation Inputs
Investments in
Securities
Level 1 – Quoted Prices
$35,866,780
Level 2 – Other Significant Observable Inputs
 
113,291,610
Level 3 – Significant Unobservable Inputs
 
--
    Total
$149,158,390

 
The following acronyms are used throughout this portfolio:
 
ADR
--American Depositary Receipt
GDR
--Global Depository Receipt



 
 
 

Item 2.                      Controls and Procedures

(a) The registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the registrant’s disclosure controls and procedures (as defined in rule 30a-3(c) under 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-Q.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in rule 30a-3(d) under the Act) during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3.                      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 World Investment Series, Inc.
   
By
/S/ Richard A. Novak
 
Richard A. Novak
 
Principal Financial Officer
   
Date
April 23, 2008


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
 
J. Christopher Donahue
 
Principal Executive Officer
   
Date
April 23, 2008
   
By
/S/ Richard A. Novak
 
Richard A. Novak
 
Principal Financial Officer
   
Date
April 23, 2008