BILTMORE BALANCED FUND
(A Portfolio of The Biltmore Funds)
Supplement to Prospectus dated January 31, 1995
A. Please delete the final sentence of the section "Purchases at Net Asset
Value" on page 14 of the Prospectus, and replace it with the following:
"Trustees, officers, directors and employees of the Distributor
and its affiliates , and any bank or investment dealer who has a
sales agreement with the Distributor relating to the Fund, may
also purchase shares at their net asset value. Finally,
effective July 31, 1995, purchases made by participants in
401(k) Defined Contribution Plans (each a "Delaware/Wachovia
401(k) Plan" or "Plan") which have in excess of an aggregate
investment of $1 million in certain Delaware Group Funds
("Eligible Delaware Funds") and certain portfolios of the Trust,
including the Fund ("Eligible Biltmore Funds" together, the
"Eligible Funds") by offering investment options that include
the Eligible Funds will be made at net asset value, without the
imposition of the sales charge otherwise provided in the table
above. "Eligible Biltmore Funds" refers to the Fund, the
Biltmore Emerging Markets Fund, the Biltmore Equity Fund, the
Biltmore Fixed Income Fund, the Biltmore Special Values Fund,
and the Investment Shares class of the Biltmore Money Market
Fund (the "Money Fund")."
B. Please insert the following section after "Concurrent Purchases" and
before "Systematic Investment Program" on page 15 of the Prospectus:
"Plan Right of Accumulation. Effective July 31, 1995, purchases
of the Fund by a Delaware/Wachovia 401(k) Plan will be
aggregated with the current value of all shares of the Eligible
Funds already held by, and being concurrently purchased by, the
Plan in order to compute reduced sales charges as shown in the
table in this prospectus under the section entitled "What Shares
Cost." However, participants in a Delaware/Wachovia 401(k) Plan
or any other employee benefit plan may not combine their
holdings in, or purchases through, the Plan with Fund purchases
made outside the Plan for the purpose of obtaining reduced sales
charges."
C. Please insert the following paragraph as the sixth paragraph in the
section "Exchange Privilege" on page 16 of the Prospectus:
"In addition to the exchange privilege described above,
effective July 31, 1995, participants in a Delaware/Wachovia
401(k) Plan are, with respect to the Plan, permitted to: (1)
exchange all or part of their Class A shares of other Eligible
Delaware Funds, as well as Eligible Biltmore Funds, at net asset
value; and (2) exchange all or part of their Eligible Biltmore
Fund shares into Class A shares of the Eligible Delaware Funds,
at net asset value, without payment of a front-end sales charge.
However, a participant in any Plan that has an aggregate
investment of $1 million or less in the Eligible Funds who
exchanges into an Eligible Fund from the Money Fund must pay the
applicable front-end sales charge at the time of the exchange
(unless the Money Fund shares were acquired in an exchange from
an Eligible Fund subject to a front-end sales charge or by
reinvestment of dividends)."
July 31, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
Cusip 090297821
G00807-06 (7/95)
BILTMORE EQUITY FUND
(A Portfolio of The Biltmore Funds)
Supplement to Prospectus dated January 31, 1995
A. Please delete the final sentence of the section "Purchases at Net Asset
Value" beginning on page 10 of the Prospectus, and replace it with the
following:
"Trustees, officers, directors and employees of the Distributor
and its affiliates , and any bank or investment dealer who has a
sales agreement with the Distributor relating to the Fund, may
also purchase shares at their net asset value. Finally,
effective July 31, 1995, purchases made by participants in
401(k) Defined Contribution Plans (each a "Delaware/Wachovia
401(k) Plan" or "Plan") which have in excess of an aggregate
investment of $1 million in certain Delaware Group Funds
("Eligible Delaware Funds") and certain portfolios of the Trust,
including the Fund ("Eligible Biltmore Funds" together, the
"Eligible Funds") by offering investment options that include
the Eligible Funds will be made at net asset value, without the
imposition of the sales charge otherwise provided in the table
above. "Eligible Biltmore Funds" refers to the Fund, the
Biltmore Balanced Fund, the Biltmore Emerging Markets Fund, the
Biltmore Fixed Income Fund, the Biltmore Special Values Fund,
and the Investment Shares class of the Biltmore Money Market
Fund (the "Money Fund")."
B. Please insert the following section after "Concurrent Purchases" and
before "Systematic Investment Program" on page 12 of the Prospectus:
"Plan Right of Accumulation. Effective July 31, 1995, purchases
of the Fund by a Delaware/Wachovia 401(k) Plan will be
aggregated with the current value of all shares of the Eligible
Funds already held by, and being concurrently purchased by, the
Plan in order to compute reduced sales charges as shown in the
table in this prospectus under the section entitled "What Shares
Cost." However, participants in a Delaware/Wachovia 401(k) Plan
or any other employee benefit plan may not combine their
holdings in, or purchases through, the Plan with Fund purchases
made outside the Plan for the purpose of obtaining reduced sales
charges."
C. Please insert the following paragraph as the sixth paragraph in the
section "Exchange Privilege" on page 13 of the Prospectus:
"In addition to the exchange privilege described above,
effective July 31, 1995, participants in a Delaware/Wachovia
401(k) Plan are, with respect to the Plan, permitted to: (1)
exchange all or part of their Class A shares of other Eligible
Delaware Funds, as well as Eligible Biltmore Funds, at net asset
value; and (2) exchange all or part of their Eligible Biltmore
Fund shares into Class A shares of the Eligible Delaware Funds,
at net asset value, without payment of a front-end sales charge.
However, a participant in any Plan that has an aggregate
investment of $1 million or less in the Eligible Funds who
exchanges into an Eligible Fund from the Money Fund must pay the
applicable front-end sales charge at the time of the exchange
(unless the Money Fund shares were acquired in an exchange from
an Eligible Fund subject to a front-end sales charge or by
reinvestment of dividends)."
July 31, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
Cusip 090297839
G00807-07 (7/95)
BILTMORE FIXED INCOME FUND
(A Portfolio of The Biltmore Funds)
Supplement to Prospectus dated January 31, 1995
A. Please delete the final sentence of the section "Purchases at Net Asset
Value" on page 13 of the Prospectus, and replace it with the following:
"Trustees, officers, directors and employees of the Distributor
and its affiliates , and any bank or investment dealer who has a
sales agreement with the Distributor relating to the Fund, may
also purchase shares at their net asset value. Finally,
effective July 31, 1995, purchases made by participants in
401(k) Defined Contribution Plans (each a "Delaware/Wachovia
401(k) Plan" or "Plan") which have in excess of an aggregate
investment of $1 million in certain Delaware Group Funds
("Eligible Delaware Funds") and certain portfolios of the Trust,
including the Fund ("Eligible Biltmore Funds" together, the
"Eligible Funds") by offering investment options that include
the Eligible Funds will be made at net asset value, without the
imposition of the sales charge otherwise provided in the table
above. "Eligible Biltmore Funds" refers to the Fund, the
Biltmore Balanced Fund, the Biltmore Emerging Markets Fund, the
Biltmore Equity Fund, the Biltmore Special Values Fund, and the
Investment Shares class of the Biltmore Money Market Fund (the
"Money Fund")."
B. Please insert the following section after "Concurrent Purchases" and
before "Systematic Investment Program" on page 14 of the Prospectus:
"Plan Right of Accumulation. Effective July 31, 1995, purchases
of the Fund by a Delaware/Wachovia 401(k) Plan will be
aggregated with the current value of all shares of the Eligible
Funds already held by, and being concurrently purchased by, the
Plan in order to compute reduced sales charges as shown in the
table in this prospectus under the section entitled "What Shares
Cost." However, participants in a Delaware/Wachovia 401(k) Plan
or any other employee benefit plan may not combine their
holdings in, or purchases through, the Plan with Fund purchases
made outside the Plan for the purpose of obtaining reduced sales
charges."
C. Please insert the following paragraph as the sixth paragraph in the
section "Exchange Privilege" on page 15 of the Prospectus:
"In addition to the exchange privilege described above,
effective July 31, 1995, participants in a Delaware/Wachovia
401(k) Plan are, with respect to the Plan, permitted to: (1)
exchange all or part of their Class A shares of other Eligible
Delaware Funds, as well as Eligible Biltmore Funds, at net asset
value; and (2) exchange all or part of their Eligible Biltmore
Fund shares into Class A shares of the Eligible Delaware Funds,
at net asset value, without payment of a front-end sales charge.
However, a participant in any Plan that has an aggregate
investment of $1 million or less in the Eligible Funds who
exchanges into an Eligible Fund from the Money Fund must pay the
applicable front-end sales charge at the time of the exchange
(unless the Money Fund shares were acquired in an exchange from
an Eligible Fund subject to a front-end sales charge or by
reinvestment of dividends)."
July 31, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
Cusip 090297854
G00807-08 (7/95)
BILTMORE SPECIAL VALUES FUND
(A Portfolio of The Biltmore Funds)
Supplement to Prospectus dated January 31, 1995
A. Please delete the final sentence of the section "Purchases at Net Asset
Value" on page 11 of the Prospectus, and replace it with the following:
"Trustees, officers, directors and employees of the Distributor
and its affiliates , and any bank or investment dealer who has a
sales agreement with the Distributor relating to the Fund, may
also purchase shares at their net asset value. Finally,
effective July 31, 1995, purchases made by participants in
401(k) Defined Contribution Plans (each a "Delaware/Wachovia
401(k) Plan" or "Plan") which have in excess of an aggregate
investment of $1 million in certain Delaware Group Funds
("Eligible Delaware Funds") and certain portfolios of the Trust,
including the Fund ("Eligible Biltmore Funds" together, the
"Eligible Funds") by offering investment options that include
the Eligible Funds will be made at net asset value, without the
imposition of the sales charge otherwise provided in the table
above. "Eligible Biltmore Funds" refers to the Fund, the
Biltmore Balanced Fund, the Biltmore Emerging Markets Fund, the
Biltmore Equity Fund, the Biltmore Fixed Income Fund, and the
Investment Shares class of the Biltmore Money Market Fund (the
"Money Fund")."
B. Please insert the following section after "Concurrent Purchases" and
before "Systematic Investment Program" on page 12 of the Prospectus:
"Plan Right of Accumulation. Effective July 31, 1995, purchases
of the Fund by a Delaware/Wachovia 401(k) Plan will be
aggregated with the current value of all shares of the Eligible
Funds already held by, and being concurrently purchased by, the
Plan in order to compute reduced sales charges as shown in the
table in this prospectus under the section entitled "What Shares
Cost." However, participants in a Delaware/Wachovia 401(k) Plan
or any other employee benefit plan may not combine their
holdings in, or purchases through, the Plan with Fund purchases
made outside the Plan for the purpose of obtaining reduced sales
charges."
C. Please insert the following paragraph as the sixth paragraph in the
section "Exchange Privilege" on page 13 of the Prospectus:
"In addition to the exchange privilege described above,
effective July 31, 1995, participants in a Delaware/Wachovia
401(k) Plan are, with respect to the Plan, permitted to: (1)
exchange all or part of their Class A shares of other Eligible
Delaware Funds, as well as Eligible Biltmore Funds, at net asset
value; and (2) exchange all or part of their Eligible Biltmore
Fund shares into Class A shares of the Eligible Delaware Funds,
at net asset value, without payment of a front-end sales charge.
However, a participant in any Plan that has an aggregate
investment of $1 million or less in the Eligible Funds who
exchanges into an Eligible Fund from the Money Fund must pay the
applicable front-end sales charge at the time of the exchange
(unless the Money Fund shares were acquired in an exchange from
an Eligible Fund subject to a front-end sales charge or by
reinvestment of dividends)."
July 31, 1995
FEDERATED SECURITIES CORP.
Distributor
A subsidiary of Federated Investors
Federated Investors Tower
Pittsburgh, PA 15222-3779
Cusip 090297870
G00807-09 (7/95)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
BILTMORE MONEY MARKET FUND
BILTMORE TAX-FREE MONEY MARKET FUND
BILTMORE U.S. TREASURY MONEY MARKET FUND
(PORTFOLIOS OF THE BILTMORE FUNDS)
SUPPLEMENT TO COMBINED INVESTMENT SHARES PROSPECTUS DATED JANUARY 31, 1995
A. Please replace the Summary of Fund Expenses tables on pages 1 through
3 and replace with the following Summary of Fund Expenses tables:
------------------------------------------------------------------------
------------------------------------------------------------------------
BILTMORE MONEY MARKET FUND
SUMMARY OF FUND EXPENSES
<TABLE>
<S> <C>
INVESTMENT SHARES
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price).................................................... None
Maximum Sales Load Imposed on Reinvested
Dividends (as a percentage of offering price).......................................... None
Contingent Deferred Sales Charge (as a percentage of original
purchase price or redemption proceeds, as applicable).................................. None
Redemption Fees (as a percentage of amount redeemed, if applicable)...................... None
Exchange Fee............................................................................. None
ANNUAL INVESTMENT SHARES OPERATING EXPENSES
(As a percentage of average net assets)
Management Fee (after waiver) (1)........................................................ 0.15%
12b-1 Fees (after waiver) (2)............................................................ 0.33%
Other Expenses........................................................................... 0.23%
Total Investment Shares Operating Expenses
(after waivers) (3)........................................................ 0.71%
</TABLE>
(1) The management fee has been reduced to reflect the voluntary
waiver by the investment adviser. The adviser can terminate this
voluntary waiver at any time at its sole discretion. The maximum
management fee is 0.50%.
(2) The Fund can pay up to 0.40% of average daily net assets of
Investment Shares as a 12b-1 fee.
(3) The Annual Investment Shares Operating Expenses were 0.68% for
the fiscal year ended November 30, 1994. The Annual Investment
Shares Operating Expenses in the table above reflect the
cessation of the voluntary waiver of the administrative fee for
the fiscal year ending November 30, 1995. The Annual Investment
Shares Operating Expenses are expected to be 1.13%, absent, the
voluntary waivers described above in notes 1 and 2.
For more complete descriptions of the various costs and expenses, see
"The Biltmore Funds Information" and "Investing in Investment
Shares."
Long-term shareholders may pay more than the economic equivalent of
the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc. However, in order
for a Fund investor to exceed the NASD's maximum front-end sales
charge of 6.25%, a continuous investment in the Fund for 125 years
would be required.
<TABLE>
<CAPTION>
Example 1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return and (2)
redemption at the end of each time period. The Fund charges
no redemption fees for Investment Shares. $7 $23 $40 $88
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST
OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN.
The information set forth in the foregoing table and example relates
only to Investment Shares of the Money Market Fund. The Fund also
offers another class of shares called Institutional Shares.
Investment Shares and Institutional Shares are subject to certain of
the same expenses, however, Institutional Shares are not subject to a
12b-1 fee. See "Other Classes of Shares."
------------------------------------------------------------------------
------------------------------------------------------------------------
BILTMORE TAX-FREE MONEY MARKET FUND
SUMMARY OF FUND EXPENSES
<TABLE>
<S> <C>
INVESTMENT SHARES
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price).................................................... None
Maximum Sales Load Imposed on Reinvested
Dividends (as a percentage of offering price).......................................... None
Contingent Deferred Sales Charge (as a percentage of original
purchase price or redemption proceeds, as applicable).................................. None
Redemption Fees (as a percentage of amount redeemed, if applicable)...................... None
Exchange Fee............................................................................. None
ANNUAL INVESTMENT SHARES OPERATING EXPENSES
(As a percentage of average net assets)
Management Fee (after waiver) (1)........................................................ 0.05%
12b-1 Fees (after waiver) (2)............................................................ 0.33%
Other Expenses........................................................................... 0.27%
Total Investment Shares Operating Expenses
(after waivers) (3)........................................................ 0.65%
</TABLE>
(1) The management fee has been reduced to reflect the voluntary
waiver by the investment adviser. The adviser can terminate this
voluntary waiver at any time at its sole discretion. The maximum
management fee is 0.50%.
(2) The Fund can pay up to 0.40% of average daily net assets of
Investment Shares as a 12b-1 fee.
(3) The Annual Investment Shares Operating Expenses were 0.68% for
the fiscal year ended November 30, 1994. The Annual Investment
Shares Operating Expenses in the table above reflect the
cessation of the voluntary waiver of the administrative fee for
the fiscal year ending November 30, 1995. The Annual Investment
Shares Operating Expenses are expected to be 1.17% absent the
voluntary waivers described above in notes 1 and 2.
The purpose of this table is to assist an investor in understanding
the various costs and expenses that a shareholder of Investment
Shares of the Tax-Free Fund will bear, either directly or indirectly.
For more complete descriptions of the various costs and expenses, see
"The Biltmore Funds Information" and "Investing in Investment
Shares."
Long-term shareholders may pay more than the economic equivalent of
the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc. However, in order
for a Fund investor to exceed the NASD's maximum front-end sales
charge of 6.25%, a continuous investment in the Fund for 125 years
would be required.
<TABLE>
<CAPTION>
Example 1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return and (2)
redemption at the end of each time period. As shown in the
table above, the Fund charges no redemption fees for
Investment Shares. $7 $21 $36 $81
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST
OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN.
The information set forth in the foregoing table and example relates
only to Investment Shares of the Tax-Free Fund. The Fund also offers
another class of shares called Institutional Shares. Investment
Shares and Institutional Shares are subject to certain of the same
expenses, however, Institutional Shares are not subject to a 12b-1
fee. See "Other Classes of Shares."
------------------------------------------------------------------------
------------------------------------------------------------------------
BILTMORE U.S. TREASURY MONEY MARKET FUND
SUMMARY OF FUND EXPENSES
<TABLE>
<S> <C>
INVESTMENT SHARES
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases
(as a percentage of offering price).................................................... None
Maximum Sales Load Imposed on Reinvested
Dividends (as a percentage of offering price).......................................... None
Contingent Deferred Sales Charge (as a percentage of original
purchase price or redemption proceeds, as applicable).................................. None
Redemption Fees (as a percentage of amount redeemed, if applicable)...................... None
Exchange Fee............................................................................. None
ANNUAL INVESTMENT SHARES OPERATING EXPENSES
(As a percentage of average net assets)
Management Fee (after waiver) (1)........................................................ 0.05%
12b-1 Fees (after waiver) (2)............................................................ 0.33%
Other Expenses........................................................................... 0.27%
Total Investment Shares Operating Expenses
(after waivers) (3)........................................................ 0.65%
</TABLE>
(1) The management fee has been reduced to reflect the voluntary
waiver by the investment adviser. The adviser can terminate this
voluntary waiver at any time at its sole discretion. The maximum
management fee is 0.50%.
(2) The Fund can pay up to 0.40% of average daily net assets of
Investment Shares as a 12b-1 fee.
(3) The Annual Investment Shares Operating Expenses were 0.66% for
the fiscal year ended November 30, 1994. The Annual Investment
Shares Operating Expenses in the table above reflect the
cessation of the voluntary waiver of the administrative fee for
the fiscal year ending November 30, 1995. The Annual Investment
Shares Operating Expenses are expected to be 1.17%, absent the
voluntary waiver described above in notes 1 and 2.
The purpose of this table is to assist an investor in understanding
the various costs and expenses that a shareholder of Investment
Shares of the U.S. Treasury Fund will bear, either directly or
indirectly. For more complete descriptions of the various costs and
expenses, see "The Biltmore Funds Information" and "Investing in
Investment Shares."
Long-term shareholders may pay more than the economic equivalent of
the maximum front-end sales charge permitted under the rules of the
National Association of Securities Dealers, Inc. However, in order
for a Fund investor to exceed the NASD's maximum front-end sales
charge of 6.25%, a continuous investment in the Fund for 125 years
would be required.
<TABLE>
<CAPTION>
Example 1 Year 3 Years 5 Years 10 Years
<S> <C> <C> <C> <C>
You would pay the following expenses on a $1,000
investment, assuming (1) 5% annual return and (2)
redemption at the end of each time period. The Fund charges
no redemption fees for Investment Shares. $7 $21 $36 $81
</TABLE>
THE ABOVE EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST
OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN.
The information set forth in the foregoing table and example relates
only to Investment Shares of the U.S. Treasury Fund. The Fund also
offers another class of shares called Institutional Shares.
Investment Shares and Institutional Shares are subject to certain of
the same expenses, however, Institutional Shares are not subject to a
12b-1 fee. See "Other Classes of Shares."
- --------------------------------------------------------------------------------
B. Please insert the following as the third paragraph in the section
"Exchanges" on page 19 of the Prospectus:
"In addition to the exchange privilege described above, effective July
31, 1995, participants in 401(k) Defined Contribution Plans (each a
"Delaware/Wachovia 401(k) Plan" or "Plan") are, with respect to the
Plan, permitted to: (1) exchange all or part of their Class A shares
of certain other Delaware Group Funds ("Eligible Delaware Funds"), as
well as Eligible Biltmore Funds, at net asset value; and (2) exchange
all or part of their Eligible Biltmore Fund shares into Class A shares
of the Eligible Delaware Funds, at net asset value, without payment of
a front-end sales charge. However, a participant in a Plan that has an
aggregate investment of $1 million or less in Eligible Delaware Funds
and/or Eligible Biltmore Funds who exchanges into the Eligible
Delaware Funds or Eligible Biltmore Funds from the Money Market Fund
must pay the applicable front-end sales charge at the time of the
exchange (unless the Money Market Fund shares were acquired in an
exchange from an Eligible Delaware Fund or Eligible Biltmore Fund
subject to a front-end sales charge or by reinvestment of dividends).
Eligible Biltmore Funds refer to the Investment Shares class of the
Money Market Fund, the Biltmore Balanced Fund, the Biltmore Emerging
Markets Fund, the Biltmore Equity Fund, the Biltmore Fixed Income
Fund, and the Biltmore Special Values Fund."
July 31, 1995
FEDERATED SECURITIES CORP.
--------------------------------------------------------------------------
Distributor
A subsidiary of FEDERATED INVESTORS
FEDERATED INVESTORS TOWER
PITTSBURGH, PA 15222-3779
090297201
090297409
090297888
G00807-10 (7/95)
