WACHOVIA EQUITY FUND
WACHOVIA GROWTH & INCOME FUND
WACHOVIA EMERGING MARKETS FUND
WACHOVIA BALANCED FUND
WACHOVIA INTERMEDIATE FIXED INCOME FUND
(PORTFOLIOS OF THE WACHOVIA FUNDS)
WACHOVIA VIRGINIA MUNICIPAL BOND FUND (PORTFOLIOS OF THE WACHOVIA MUNICIPAL
FUNDS) Class A Shares and Class B Shares Supplement to Combined Prospectus dated
March 7, 1998
A. Effective immediately, Michael O. Mercer, F. Stanley King, Joseph H.
Waterfill, John F. Hageman, Daniel S. Earthman, Russell L. Kimbro and Matthew
McGuinness will manage the Equity Fund and Balanced Fund and effective July 1,
1998, will manage the Growth & Income Fund. Accordingly, please delete
references to all other portfolio managers of these Funds.
B. Please add the following as the second full paragraph on page 29:
"Matthew J. McGuinness is a portfolio manager of the Equity Fund, Balanced Fund
and Growth & Income Fund. He is a Vice President and Portfolio Manger in
Personal Trust Portfolio Management for Wachovia Asset Management. Mr.
McGuinness joined Wachovia in 1991 in the Estates/Closely-Held Unit. In 1994, he
became responsible for managing Personal Financial Services investment
portfolios. He received an MBA from the University of North Carolina at Chapel
Hill and is a Chartered Financial Analyst.
C. Please add the following as the last paragraph of the section entitled
"Performance Information" on page 39:
"Performance Information for Predecessor Mutual Funds
The Growth & Income Fund, Intermediate Fixed Income Fund and Virginia Municipal
Bond Fund (the "Successor Funds") are the successors to portfolios of the
MarketWatch Funds, which were previously managed by the Adviser. On March 27,
1998, the assets and liabilities of the respective MarketWatch Funds were
transferred to the Successor Funds in exchange for each Fund's shares,
respectively. The Adviser has represented that the each Successor Fund's
investment objective, policies and limitations are in all material respects
equivalent to those of the respective MarketWatch Fund.
The Growth & Income Fund's average annual total returns for the one-, three-,
and five-year periods ended April 30, 1998, and since inception (January 29,
1993), reflecting the maximum sales charge (i.e., 4.50%) were 32.59%, 28.92,%,
20.74% and 18.73%, respectively. The Growth & Income Fund's average annual total
returns for the one-, and five-year periods ended April 30, 1998, and since
inception (January 29, 1993), without reflecting the sales charge were 38.81%,
30.91%, 20.74% and 19.77%, respectively. The Intermediate Fixed Income Fund's
average annual total returns for the one-, three-, and five--year periods ended
April 30, 1998, and since inception (January 29, 1993), reflecting the maximum
sales charge (i.e., 4.50%) were 5.60%, 5.73,%, 4.34% and 4.61%, respectively.
The Intermediate Fixed Income Fund's average annual total returns for the one-,
and five-year periods ended April 30, 1998, and since inception (January 29,
1993), without reflecting the sales charge were 10.54%, 7.36%, 5.31% and 5.52%,
respectively. The Virginia Municipal Bond Fund's average annual total returns
for the one-, three-and five-year periods ended April 30, 1998, and since
inception (February 1, 1993), reflecting the maximum sales charge (i.e., 4.50%)
were 3.34%, 4.62,%, 3.54% and 3.81%, respectively. The Virginia Municipal Bond
Fund's average annual total returns for the one-, and five-year periods ended
April 30, 1998, and since inception (February 1, 1993), without reflecting the
sales charge were 8.23%, 6.23%, 4.50% and 4.72%, respectively. The quoted
performance data includes the performance of the Successor Funds for periods
after the past performance data shown above is not necessarily indicative of the
Successor Funds' future performance. The MarketWatch Funds did not offer
separate classes of shares and were subject to different expenses, and
therefore, performance may vary."
June 16, 1998
Cusip 929901601
929901502
929901734
929901742
929901759
929901692
929901718
929901726
929901650
929901643
929901676
929901668
929902708
929902807
G02165-07 (6/98)
[GRAPHIC OMITTED]
<PAGE>
THE WACHOVIA FUNDS
THE WACHOVIA MUNICIPAL FUNDS
Class Y Shares
Supplement to Combined Prospectus dated March 7, 1998
A. Please add the following as the second to the last sentence of the first
paragraph of the section entitled "General Information" on page 6:
"Class Y Shares are also offered to participants in qualified retirement
plans that offer a Wachovia Fund as an investment option through a program
known as "Institutional Solutions" marketed by Delaware Investment and
Retirement Services, Inc."
B. Effective immediately, Michael O. Mercer, F. Stanley King, Joseph H.
Waterfill, John F. Hageman, Daniel S. Earthman, Russell L. Kimbro and Matthew
McGuinness will manage the Equity Fund and Balanced Fund and effective July 1,
1998, will manage the Growth & Income Fund. Accordingly, please delete
references to all other portfolio managers of these Funds.
C. Please add the following as the fifth full paragraph on page 25:
"Matthew J. McGuinness is a portfolio manager of the Equity Fund, Balanced Fund
and Growth & Income Fund. He is a Vice President and Portfolio Manger in
Personal Trust Portfolio Management for Wachovia Asset Management. Mr.
McGuinness joined Wachovia in 1991 in the Estates/Closely-Held Unit. In 1994, he
became responsible for managing Personal Financial Services investment
portfolios. He received an MBA from the University of North Carolina at Chapel
Hill and is a Chartered Financial Analyst.
D. Please add the following as the last paragraph of the section entitled
"Performance Information" on page 32:
"Performance Information for Predecessor Mutual Fund
The Growth & Income Fund, Intermediate Fixed Income Fund and Virginia Municipal
Bond Fund (the "Successor Funds") are the successors to portfolios of the
MarketWatch Funds, which were previously managed by the Adviser. On March 27,
1998, the assets and liabilities of the respective MarketWatch Funds were
transferred to the Successor Funds in exchange for each Fund's shares,
respectively. The Adviser has represented that the each Successor Fund's
investment objective, policies and limitations are in all material respects
equivalent to those of the respective MarketWatch Fund.
The Growth & Income Fund's average annual total returns for the one-, three-,
and five-year periods ended April 30, 1998, and since inception (January 29,
1993), were 38.81%, 30.91,%, 20.74% and 19.77%, respectively. The Intermediate
Fixed Income Fund's average annual total returns for the one-, three-, and
five-year periods ended April 30, 1998, and since inception (January 29, 1993),
were 10.54%, 7.36,%, 5.31% and 5.52%, respectively. The Virginia Municipal Bond
Fund's average annual total returns for the one-, three-, and five-year periods
ended April 30, 1998, and since inception (February 1, 1993), were 8.23%,
6.23,%, 4.50% and 4.72%, respectively. The quoted performance data includes the
performance of the Successor Funds for periods after the Successor Funds'
registration statement became effective, as adjusted to reflect the Successor
Funds' Class Y Shares' anticipated expenses as set forth in the "Expenses of the
Funds'" section of this prospectus. The past performance data shown above is not
necessarily indicative of the Successor Funds' future performance. The
MarketWatch Funds did not offer separate classes of shares and were subject to
different expenses, and therefore, performance may vary."
June 16, 1998
Cusip 929901601 929901784
929901502 929901841
929901734 929901858
929901742 929901767
929901759 929901775
929901692 929901783
929901718 929901791
929901726 929901817
929901650 929901809
929901643 929901882
929901676 929901700
929901668 929902104
929902708 929902203
929902807 929902500
929901866 929902609
929902401 929902302
G02165-08 (6/98)
[GRAPHIC OMITTED]
