THE BILTMORE BALANCED FUND
THE BILTMORE EQUITY FUND
(Portfolios of The Biltmore Funds)
Supplement to The Biltmore Funds and The Biltmore Municipal Funds combined
prospectuses dated July 22, 1996
Effective immediately, Mr. John F. Hageman, who is currently a portfolio
manager of the Biltmore Balanced Fund, will also manage the Biltmore Equity
Fund. On October 1, 1996, Mr. Joseph H. Waterfill will assume portfolio
management of the Biltmore Balanced Fund, replacing Mr. Hageman.
Accordingly, please delete the fourth paragraph of the sub-section entitled
`Advisers' Background'' which begins on page 24 of the combined prospectus
for Class A Shares and Class B Shares, and page 21 of the Class Y Shares
combined prospectus.
Please add the following as the last paragraph of the sub-section:
`Joseph H. Waterfill is a Senior Vice President of Wachovia Financial
Management in Atlanta. He serves as an institutional portfolio manager in
the Asset Management Group. Mr. Waterfill became the portfolio manager of
the Balanced Fund in October 1996. Mr. Waterfill joined Wachovia in 1976 as
an employee benefit portfolio manager. He was elected Senior Vice President
in 1990. Mr. Waterfill received a bachelor of science degree from the U.S.
Naval Academy in 1963 and an MBA from Vanderbilt University in 1973.''
September 13, 1996
G01727-03 (9/96)
