BILTMORE EQUITY FUND
BILTMORE SPECIAL VALUES FUND
(PORTFOLIOS OF THE BILTMORE FUNDS)
BILTMORE GEORGIA MUNICIPAL BOND FUND
BILTMORE NORTH CAROLINA MUNICIPAL BOND FUND
BILTMORE SOUTH CAROLINA MUNICIPAL BOND FUND
(PORTFOLIOS OF THE BILTMORE MUNICIPAL FUNDS)
SUPPLEMENT TO PROSPECTUSES DATED JANUARY 31, 1997
Effective immediately, R. Emery Pike no longer serves as
portfolio manager of The Biltmore Municipal Funds. Mr. Pike will
continue to serve as portfolio manager for The Biltmore Fixed Income
Fund. Michael W. Holt will serve as the portfolio manager of The
Biltmore Municipal Funds. Therefore, please add the following
biographical information for Mr. Holt:
"Michael W. Holt is the Portfolio Manager of THE BILTMORE
MUNICIPAL FUNDS. Mr. Holt joined South Carolina National Bank in
February 1991 and assumed his present position as fixed income
portfolio manager for Wachovia Investment Management in January 1992.
He is a graduate of the University of Tennessee where he majored in
economics and received an MBA in Finance. Mr. Holt is a Chartered
Financial Analyst."
In addition, effective immediately, Scott C. Satterwhite no
longer serves as portfolio manager of the Special Values Fund and
co-manager of the Equity Fund. Therefore, please delete Mr.
Satterwhite's biographical information and replace with the following:
"Michael J. Tierney is an Executive Vice President of Wachovia
Bank of North Carolina, N.A. and Chief Investment Officer with
Wachovia Asset Management. He joined Wachovia Bank of North Carolina,
N.A. in 1981. Mr. Tierney is a portfolio manager of the EMERGING
MARKETS FUND and the SPECIAL VALUES FUND. Mr. Tierney is a graduate of
the University of Connecticut, and has more than 25 years of
experience managing equity and fixed income investments.
Russell L. Kimbro, Jr. is a Senior Vice President and Portfolio
Manager for Personal Financial Services and is a portfolio manager of
the EQUITY FUND. Having been with Wachovia since 1985, Mr. Kimbro
worked previously as an account executive and operations manager at
Prudential Bache Securities and as an instructor of corporate finance
at the University of North Carolina at Greensboro. He received a
bachelor's degree in economics from Virginia Polytechnical Institute
and State University and an MBA from UNCG. Mr. Kimbro is a member of
the North Carolina Society of Financial Analysts."
John F. Hageman, F. Stanley King, Michael O. Mercer and Joseph H.
Waterfill remain as portfolio co-managers of the Equity Fund.
July 1, 1997
FEDERATED INVESTORS
Federated Securities Corp., Distributor
G02033-02 (7/97)
