BILTMORE EQUITY FUND
(A Portfolio of The Biltmore Funds)
SUPPLEMENT TO PROSPECTUS DATED JANUARY 31, 1995
Effective immediately, Frank N. Donnelly has assumed co-management
responsibilities for the Biltmore Equity Fund. Accordingly, please replace the
fourth paragraph under the sub-heading "Adviser's Background" which begins on
page 7 with the following:
"The Fund's portfolio managers are Frank N. Donnelly, F. Stanley King and
Michael O. Mercer. Mr. Donnelly assumed co-management responsibilities in
1995. Mr. King and Mr. Mercer have co-managed the Fund since its
inception."
In addition, please add the following biography as the fifth paragraph:
"Mr. Donnelly is Senior Vice President and Senior Investment Officer
in institutional portfolio management for Wachovia Asset Management in
Atlanta. Mr. Donnelly joined Wachovia Capital Management as a
counselor in 1987. He became an institutional portfolio manager in
Atlanta in 1990. He received his bachelor of science degree in
economics from Siena College in 1971 and an MBA from Babcock School of
Management, Wake Forest University in 1983."
December 6, 1995
FEDERATED SECURITIES CORP.
Distributor RA
A subsidiary of FEDERATED
INVESTORS
Federated Investors Tower
PITTSBURGH, PA 15222-3779
Cusip 090297839
