The Blanchard Group of Funds
Blanchard Global Growth Fund
Blanchard Precious Metals Fund,Inc.
Blanchard 100% Treasury Money Market Fund
Blanchard Short-Term Global Income Fund
Blanchard American Equity Fund
Blanchard Flexible Income Fund
Blanchard Short-Term Flexible Income Fund
Blanchard Flexible Tax-Free Bond Fund
Blanchard Worldwide Emerging Markets Fund
Supplement to the Prospectus dated August 7, 1995
1. Under the section entitled "How to Invest" on page 32 please delete the
second and third sentences and replace with the following:
"You may also purchase shares from broker-dealers who have entered into a dealer
agreement with the Distributor at net asset value, which is determined as of the
close of trading (normally 4:00 p.m., Eastern time) on the New York Stock
Exchange. If your order is received after the above time, your shares will be
purchased at the net asset value on the next business day."
2. Under the section entitled "Purchases By Mail" on page 33 please delete the
first paragraph and replace with the following:
"To purchase shares of a Fund by mail, simply send a completed Application
(included with this Prospectus or obtainable from the Fund), to the Blanchard
Group of Funds, P.O. Box 8612, Boston, MA 02266-8612, together with a check
payable to the Blanchard Group of Funds in payment for the shares. If you need
assistance in completing the application, call 1-800-829-3863."
3. Under the section entitled "Purchases By Mail" on page 33 please delete the
third paragraph and replace with the following:
"Orders by mail are considered received after payment by check is converted into
Federal funds. This is generally the next business day after the Transfer Agent
receives the check."
4. Under the section entitled "Purchases By Mail" on page 33 please delete the
second paragraph and replace with the following:
"You should instruct your bank to wire Federal funds to: State Street Bank and
Trust Company, ABA #011000028, DDA #0627-975-6, Boston, MA, indicating the name
of the Fund, your account number and the account registration."
5. Please delete the section entitled "Electronic Funds Transfers (EFT)" which
begins on page 33, and replace with the following:
"By Telephone. This service allows you to purchase additional shares quickly and
conveniently through an electronic transfer of money. When you make an
additional purchase by telephone, Blanchard will automatically debit your
predesignated bank account for the desired amount. To establish the telephone
purchase option on your new account you must complete the section on the
application and attach a "voided" check from your bank account. If your account
is already established, please call 1-800-829-3863 to request the appropriate
form. This option will become effective 15 calendar days after the form is
processed."
6. Under the section entitled "Automatic Withdrawal Plan" on page 34 please
delete the first sentence of the second paragraph and replace with the
following:
"Your specified withdrawal payments are made monthly or quarterly in any amount
you choose, but not less than $100 per month or $300 quarterly."
7. Under the section entitled "Exchange Privilege" on page 35 please delete the
first paragraph and replace with the following:
"You may exchange your Fund shares for shares of another Fund in the Blanchard
Group of Funds or for Investment Shares of the Virtus Funds' money market
portfolios, which consist of The Money Market Fund, The Treasury Money Market
Fund and The Tax-Free Money Market Fund, on the basis of relative net asset
values per share at the time of exchange. No fees are charged when you exchange
from one Fund to another within the Blanchard Group of Funds or into one of the
above mentioned portfolios of the Virtus Funds. Before making an exchange, you
should read the Prospectus concerning the participating Fund into which your
exchange is being made."
8. Under the section entitled "Exchange Privilege" on page 35 please delete the
sixth paragraph and replace with the following:
"Check-Writing Privilege. If you are a shareholder of Blanchard Short-Term
Global Income Fund, Blanchard Flexible Income Fund, Blanchard Short-Term
Flexible Income Fund (formerly Blanchard Short-Term Bond Fund), or Blanchard
100% Treasury Money Market Fund (other than IRAs, Keoghs and other qualified
pension plan shareholders), you may elect a service which allows you to write an
unlimited number of checks in any amount of $250 or more which will clear
through the Transfer Agent. There is no charge for this service for regular
checks; special checkbooks are assessed a $60 check printing fee. If the amount
of your check is less than $250 the check will be cleared but you will be
assessed a $10 charge. If the check exceeds the value of the shares in your
account, your check will be returned and a $10 fee deducted from your account.
You may not use the Check-Writing Privilege to close out your account as you
will not be able to ascertain the exact account balance of your account on the
date your check clears. To close out your account completely, you should use the
telephone or mail redemption procedures described below. Stop orders may be
placed on checks for a fee of $10. For further information on this service,
please call Investors' Services at 1-800-829-3863."
9. Under the section entitled "By Telephone" on page 36 please delete the first
sentence and replace with the following:
"You may redeem your shares by telephone by calling 1-800-829-3863, prior to
4:00 p.m. Eastern time."
10. Under the section entitled "By Mail" on page 36 please delete the first
sentence and replace with the following:
"All other redemption requests should be made in writing to the Blanchard Group
of Funds, P.O. Box 8612, Boston, MA 02266-8612."
11. Under the section entitled "General Information" on page 37 please delete
the first sentence and replace with the following:
"Your redemption request becomes effective when it is received in proper form by
the Funds' Transfer Agent prior to 4:00 p.m. Eastern time or your redemption
will occur on the following business day."
12. Under the section entitled "General Information" on page 37 please delete
the third sentence and replace with the following:
"However, we may delay the forwarding of redemption proceeds on shares which
were recently purchased until the purchase check has cleared, which may take up
to 7 calendar days or more."
13. Please delete the section entitled "Custodian, Transfer Agent and Dividend
Disbursing Agent" on page 43 and replace with the following:
"Custodian. Signet Trust Company, Richmond, Virginia, is custodian for the
securities and cash of the Funds. Under the Custodian Agreement, Signet Trust
Company holds the Funds' portfolio securities in safekeeping and keeps all
necessary records and documents relating to its duties.
Transfer Agent and Dividend Disbursing Agent. Federated Services Company,
Pittsburgh, Pennsylvania, is transfer agent for the Funds and dividend
disbursing agent for the Funds."
October 18, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
093265106 093212306
093254100 093212405
093215101 093212603
093265205 093212702
093212207
G01335-16 (10/95)
THE BLANCHARD GROUP OF FUNDS
Blanchard Global Growth Fund
Blanchard Precious Metals Fund, Inc.
Blanchard 100% Treasury Money Market Fund
Blanchard Short-Term Global Income Fund
Blanchard American Equity Fund
Blanchard Flexible Income Fund
Blanchard Short-Term Flexible Income Fund
Blanchard Flexible Tax-Free Bond Fund
Blanchard Worldwide Emerging Markets Fund
Supplement to Statements of Additional Information dated August 7, 1995
1. On page one of the Statement of Additional Information, please change the
Custodian to the following:
"Signet Trust Company"
2. On page one of the Statement of Additional Information, please change the
Transfer Agent to the following:
"Federated Services Company"
3. Please insert the following section directly before the section entitled
"Administrative Services":
"Custodian
Signet Trust Company is custodian for the securities and cash of the Funds.
Under the Custodian Agreement, Signet Trust Company holds the Funds' portfolio
securities in safekeeping and keeps all necessary records and documents
relating to its duties. The custodian receives a fee at an annual rate of
.05 of 1% on the first $10 million of average net assets of each of the six
respective portfolios and .025 of 1% on average net assets in excess of
$10 million. There is a $20 fee imposed on each transaction. The custodian fee
received during any fiscal year should be at least $1,000 per Fund"
October 18, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
093265106 093212306
093254100 093212405
093215101 093212603
093265205 093212702
093212207
