THE BLANCHARD GROUP OF FUNDS
BLANCHARD AMERICAN EQUITY FUND
SUPPLEMENT TO PROSPECTUS DATED AUGUST 7, 1995
On May 15, 1996, the Board of Trustees of Blanchard Funds approved an
Agreement and Plan of Reorganization (the "Agreement") which provides for the
acquisition by The Style Manager: Large Cap Fund ("Large Cap"), a portfolio of
The Virtus Funds, of all of the assets of Blanchard American Equity Fund
("American Equity") in exchange for Investment Shares of Large Cap. American
Equity would then distribute the shares of Large Cap so received pro rata to
its shareholders and would liquidate and terminate its existence. The
Agreement also contemplates that no gain or loss will be recognized by either
Large Cap or American Equity or their shareholders as a result of
reorganization.
The Agreement will be presented for the approval of shareholders of American
Equity at a Special Meeting of Shareholders currently scheduled to be held in
June 1996. Shareholders of American Equity will receive a proxy statement
discussing the terms of and the reasons for the merger in detail, and will be
entitled to vote at the Special Meeting.
May 15, 1996
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
Federated Investors Tower
PITTSBURGH, PA 15222-3779
Cusip 093212207
