BLANCHARD FUNDS
497, 1996-06-21
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BLANCHARD GROUP OF FUNDS
     BLANCHARD ASSET ALLOCATION FUND


SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION DATED MAY 30, 1996
Please delete the sub-section entitled "Issuing Senior Securities" under the
section entitled "Investment Limitations" on page 6.

                                                                   June 21, 1996





FEDERATED INVESTORS
Federated Investors Tower
Pittsburgh, PA  15222-3779
Federated Securities Corp. is the distributor of the Fund
and is a subsidiary of Federated Investors.
Cusip 093212504



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