THE BLANCHARD GROUP OF FUNDS
                           BLANCHARD WORLDWIDE EMERGING MARKETS FUND
SUPPLEMENT TO PROSPECTUS DATED AUGUST 7, 1995, AS SUPPLEMENTED ON AUGUST 11,
1995 FOR MARYLAND INVESTORS ONLY

          The following is to be read and is deemed to be a part of the
Prospectus.
RISK FACTORS AND SPECIAL CONSIDERATIONS

LOWER QUALITY FIXED INCOME SECURITIES.
      The FUND may invest up to 35% of its assets in lower quality fixed income 
securities.  The lower quality fixed income securities that
may comprise all of the fixed income sector's investments generally produce
a higher current yield than do fixed income securities of higher quality.
However, these high risk/high return securities are considered speculative
because they involve greater price volatility and risk than do higher quality
fixed income securities and yields on these fixed income securities will tend
to fluctuate over time.  Although the market value of all fixed income
securities varies as a result of changes in prevailing interest rates (e.g.,
when interest rates rise, the market value of fixed income securities can be
expected to decline), values of lower quality fixed income securities tend to
react differently than the values of higher quality fixed income securities.
Conversely, lower quality fixed income securities also involve a greater risk
of default by the issuer in the payment of principal and income and are more
sensitive to economic downturns and recessions than higher quality fixed
income securities.  The financial stress resulting from an economic downturn
could have a greater negative effect on the ability of issuers of lower
quality fixed income securities to service their principal and interest
payments, to meet projected business goals and to obtain additional financing
than on more creditworthy issuers.  In the event of an issuer's default in
payment of principal or interest on such securities, or any other fixed income
securities in the FUND's portfolio, the net asset value of the FUND will be
negatively affected.  Moreover, as the market for lower quality fixed income
securities is relatively new one, a severe economic downturn might increase
the number of defaults, thereby adversely affecting the value of all
outstanding lower quality fixed income securities and disrupting the market
for such securities.  Fixed income securities purchased by the FUND as part of
an initial underwriting present an additional risk due to their lack of market
history.  These risks are exacerbated with respect to fixed income securities
rated Caa or lower by Moody's or CCC or lower by S&P.  Unrated fixed income
securities generally carry the same risks as do lower rated fixed income
securities.
      Lower quality fixed income securities are typically traded among a smaller
number of broker-dealers rather than in a broad secondary
market.  Purchasers of lower quality fixed income securities tend to be
institutions, rather than individuals, a factor that further limits the
secondary market.  To the extent that no established retail secondary market
exists, many lower quality fixed income securities may not be as liquid as
Treasury and investment grade bonds.  The ability of the FUND to sell lower
quality fixed income securities will be adversely affected to the extent that
such securities are thinly traded or illiquid.  Moreover, the ability of the
FUND to value lower quality fixed income securities becomes more difficult,
and judgment plays a greater role in valuation, as there is less reliable,
objective data available with respect to such securities that are thinly
traded or illiquid.  Unrated fixed income securities are not necessarily of
lower quality than rated fixed income securities, but they may not be
attractive to as many buyers.
      Because investors may perceive that there are greater risks associated 
with the lower quality fixed income securities of the type in which the FUND
may invest, the yields and
prices of such securities may tend to fluctuate more than those for lower
quality fixed income securities.  Changes in perception of issuers'
creditworthiness tend to occur more frequently and in a more pronounced manner
in the lower quality segments of the fixed income securities market than do
changes in higher quality segments of the fixed income securities market,
resulting in greater yield and price volatility.  The speculative
characteristics of lower rated fixed income securities are set forth in
Appendix A.
      OFFITBANK believes that the risk of investing in such high yielding, 
fixed income securities may
be minimized through careful analysis of prospective issuers.  Although the
opinion of ratings services such as Moody's and S&P is considered in selecting
portfolio securities, they evaluate the safety of the principal and the
interest payments of the security, not their market value risk.  Additionally,
credit rating agencies may experience slight delays in updating ratings to
reflect current events.  OFFITBANK relies, primarily, on its own credit
analysis.  This may suggest, however, that the achievement of one portion of
the FUND's investment objective is more dependent on OFFITBANK's proprietary
credit analysis, than is otherwise the case for a fund that invests
exclusively in higher quality fixed income securities.
      Once the rating of a portfolio security or the quality determination 
ascribed by OFFITBANK to an
unrated fixed income security has been downgraded, OFFITBANK will consider all
circumstances deemed relevant in determining whether to continue to hold the
security.
      Investors should recognize that investing in securities of companies 
in emerging countries involves certain special considerations and risk factors,
including those set forth
below, which are not typically associated with investing in securities of U.S.
companies.

FOREIGN CURRENCY CONSIDERATIONS
      The FUND's assets will be invested principally in securities of entities 
in emerging markets and
substantially all of the income received by the FUND will be in foreign
currencies.  However, the FUND will compute and distribute its income in U.S.
dollars, and the computation of income will be made on the date that the
income is earned by the FUND at the foreign exchange rate in effect on that
date.  Therefore, if the value of the foreign currencies in which the FUND
receives its income falls relative to the U.S. dollar between the earning of
the income and the time at which the FUND converts the foreign currencies to
U.S. dollars, the FUND will be required to liquidate securities in order to
make distributions if the FUND has insufficient cash in U.S. dollars to meet
distribution requirements.  The liquidation of investments, if required, may
have an adverse impact of the FUND's performance.  In addition, if the
liquidated investments include securities that have been held less than three
months, such sales may jeopardize the FUND's status as a regulated investment
company under the Code.  See "Tax Matters".
      Since the FUND will invest in securities denominated or quoted in 
currencies other than the U.S. dollar, changes in foreign currency exchange 
rates will affect the value of
securities in the FUND's portfolio and the unrealized appreciation or
depreciation of investments.  Further, the FUND may incur costs in connection
with conversions between various currencies.  Foreign exchange dealers realize
a profit based on the difference between the prices at which they are buying
and selling various currencies.  Thus, a dealer normally will offer to sell a
foreign currency to the FUND at one rate, while offering a lesser rate of
exchange should the FUND desire immediately to resell that currency to the
dealer.  The FUND will conduct its foreign currency exchange transactions
either on a spot (i.e., cash) basis at the spot rate prevailing in the foreign
currency exchange market or through entering into forward, futures or options
contracts to purchase or sell foreign currencies.
      The FUND may seek to protect the value of some portion or all of its 
portfolio holdings against
currency exchange contracts and currency futures contracts and options on such
futures contracts, as well as purchase put or call options on currencies, in
U.S. or foreign markets.  In order to hedge against adverse market shifts, the
FUND may purchase put and call options on stocks, write covered call options
on stocks and enter into stock index futures contracts and related options.
There can be no guarantee that instruments suitable for hedging currency or
market shifts will be available at the time when the FUND wishes to use them.
Moreover, investors should be aware that in most emerging countries the
markets for certain of these hedging instruments are not highly developed and
that in many emerging countries no such markets currently exist.

INVESTMENT AND REPATRIATION RESTRICTIONS
      Some emerging market countries have laws and regulations that currently 
preclude direct foreign
investment in the securities of their companies.  However, indirect foreign
investment in the securities of companies listed and traded on the stock
exchange in these countries is permitted by certain emerging market countries
through investment funds which have been specifically authorized.  The FUND
may invest in these investment funds subject to the provisions of the 1940
Act.  If the FUND invests in such investment funds, the FUND's shareholders
will bear not only their proportionate share of the expenses of the FUND
(including operating expenses and the fees of the Manager), but also will
indirectly bear similar expenses of the underlying investment funds.  See also
"Tax Matters" for a discussion of passive foreign investment companies.
      In addition, prior governmental approval for foreign investments may be 
required under certain c
ircumstances in some emerging market countries, and the extent of foreign
investment in domestic companies may be subject to limitation in other
emerging countries.  Foreign ownership limitations also may be imposed by the
charters of individual companies in emerging market countries to prevent,
among other concerns, violation of foreign investment limitations.
      Repatriation of investment income, capital and the proceeds of sales 
by foreign investors may require governmental registration and/or approval 
in some emerging market
countries.  The FUND could be adversely affected by delays in or a refusal to
grant any required governmental registration or approval for such repatriation
or by withholding taxes imposed by emerging market countries on interest or
dividends paid on securities held by the FUND or gains from the disposition of
such securities.  See "Tax Matters".

EMERGING MARKET SECURITIES MARKETS
Trading volume in emerging market securities markets is substantially less 
than that in the United States.  Further, securities of some emerging market 
country companies are
less liquid and more volatile than securities of comparable U.S. companies.
Commissions for trading on emerging market country stock exchanges are
generally higher than commissions for trading on U.S. exchanges, although the
Portfolio Adviser will endeavor to achieve the most favorable net results on
the FUND's portfolio transactions and may, in certain instances, be able to
purchase its portfolio investments on other stock exchanges where commissions
are negotiable.
      Companies in emerging market countries are not generally subject to 
uniform accounting, auditing
and financial reporting standards, practices and disclosure requirements
comparable to those applicable to U.S. companies.  Consequently, there may be
less publicly available information about an emerging market country company
than about a U.S. company.  Further, there is generally less government
supervision and regulation of foreign stock exchanges, brokers and listed
companies than in the United States.

INVESTMENTS IN UNLISTED SECURITIES
      Although the Fund expects to invest primarily in listed securities, it 
may invest up to 15% of its
total assets in the aggregate in unlisted Emerging Market Equity
Securities, including investments in new and early stage companies, which may
involve a high degree of business and financial risk that can result in
substantial losses.  Because of the absence of any trading market for these
investments, the FUND may take longer to liquidate these positions than would
be the case for the publicly traded securities.  Although these securities may
be resold in privately negotiated transactions, the prices realized on these
sales could be less than those originally paid by the FUND.  Further,
companies whose securities are not publicly traded may not be subject to
public disclosure and other investor protection requirements applicable to
publicly traded securities.

ECONOMIC AND POLITICAL RISKS.
      The economies of individual emerging market countries may differ
favorable or unfavorably from the U.S. economy in such respects as growth of
gross domestic product, rate of
inflation, currency depreciation, capital reinvestment, resource self-
sufficiency and balance of payments position.  Further, the economies of
developing countries generally are heavily dependent upon international trade
and, accordingly, have been and may continue to be adversely affected by trade
barriers, exchange controls, managed adjustments in relative currency values
and other protectionist measures imposed or negotiated by the countries with
which they trade.  These economies also have been and may continue to be
adversely affected by economic conditions in the countries with which they
trade.
      With respect to any emerging market country, there is the possibility 
of nationalization, expropriation or confiscatory taxation, political 
changes, government regulation,
social instability or diplomatic developments (including war) which could
affect adversely the economies of such countries or the value of the FUND's
investment in those countries.  In addition, it may be difficult to obtain and
enforce a judgment in a court outside of the United States.
August 11, 1995


    FEDERATED SECURITIES CORP.

    Distributor
    A subsidiary of Federated Investors
    Federated Investors Tower
    Pittsburgh, PA  15222-3779
    
    G01335-10 (8/95)




THE BLANCHARD GROUP OF FUNDS
                           BLANCHARD WORLDWIDE EMERGING MARKETS FUND
SUPPLEMENT TO PROSPECTUS DATED AUGUST 7, 1995, AS SUPPLEMENTED ON AUGUST 11,
1995 FOR TEXAS INVESTORS ONLY

     I.  The first sentence of the fifth paragraph under the heading
"Investment Objective and Policies" at page 6 of the Prospectus is amended to
read as follows:
     
                  " The Portfolio Adviser for Fixed Income
                  Securities may invest all of the fixed income
                  sector's total assets in lower-quality fixed
                  income securities, commonly referred to as "junk
                  bonds," if the Portfolio Adviser deems that such
                  high yield/high risk securities present
                  attractive investment opportunities."

     II.  The section of the Prospectus "Risk Factors and Special
Considerations" on pages 16 and 17 should be read and is deemed a part of the
sub-section of the Prospectus "Risk Factor and Special Considerations" on page
7.
     
     August 11, 1995


    FEDERATED SECURITIES CORP.

    Distributor
    A subsidiary of Federated Investors
    Federated Investors Tower
    Pittsburgh, PA  15222-3779
    
    G01335-10 (8/95)



THE BLANCHARD GROUP OF FUNDS
         BLANCHARD WORLDWIDE EMERGING MARKETS FUND
SUPPLEMENT DATED AUGUST 11, 1995 TO THE PROSPECTUS DATED AUGUST 7, 1995 FOR
VERMONT INVESTORS ONLY

The Blanchard Worldwide Emerging Markets Fund is not presently being offered
to Vermont investors.
August 11, 1995


    FEDERATED SECURITIES CORP.

    Distributor
    A subsidiary of Federated Investors
    Federated Investors Tower
    Pittsburgh, PA  15222-3779
    G01335-10 (8/95)



THE BLANCHARD GROUP OF FUNDS
                                      BLANCHARD  SHORT-TERM BOND FUND
                                       BLANCHARD FLEXIBLE INCOME FUND
SUPPLEMENT TO PROSPECTUS DATED AUGUST 7, 1995, AS SUPPLEMENTED ON AUGUST 11,
1995 FOR MISSOURI INVESTORS ONLY

      The FUND may engage in active short-term trading to benefit from yield
disparities among different issues of securities, to seek short-term profits
during periods of fluctuating interest rates, or for other reasons.  Such
trading will increase the FUND's rate of turnover and the possible incidence
of short-term capital gains taxable as ordinary income.  The FUND's Manager
anticipates that the annual turnover in the FUND will not be in excess of
200%.  An annual turnover rate of 200% occurs, for example, when the dollar
equivalent of all the securities in the FUND's portfolio are replaced two
times in a period of one year.  A high rate of portfolio turnover involves
correspondingly greater expenses than a lower rate, including brokerage
commissions or dealer mark-ups and other transaction costs on the sale of
securities and reinvestment in other securities, which expenses must be borne
by the FUND and its shareholders.  High portfolio turnover rate also may
result in the realization of substantial net short-term capital gains.  In
order to continue to qualify as a regulated investment company for Federal Tax
purposes, less than 30% of the annual gross income of the FUND must be derived
from the sale of securities held by the FUND for less than three months.
     August 11, 1995



    FEDERATED SECURITIES CORP.

    Distributor
    A subsidiary of Federated Investors
    Federated Investors Tower
    Pittsburgh, PA  15222-3779
    
    G01335-05 (8/95)



 THE BLANCHARD GROUP OF FUNDS
                      BLANCHARD AMERICAN EQUITY FUND
SUPPLEMENT TO PROSPECTUS DATED AUGUST 7, 1995, AS SUPPLEMENTED ON AUGUST 11,
1995 FOR  MISSOURI INVESTORS ONLY

      The Fund's objective is to achieve long-term growth of capital.  The
Fund's portfolio is primarily composed of equity securities of companies of
various sizes which are currently experiencing a rate of earnings growth
greater than the average of such rate for all companies included in Standard &
Poor's 500-Stock Index.

      The Fund's strategy does not prelude investment in large, seasoned 
companies which in the judgment of the Fund's portfolio adviser possess 
superior potential returns similar
to companies with formative growth profiles.  The Fund may also invest in
established smaller companies and in small-to medium size growth companies.

      Investors should realize that equity securities of small-to medium-size
companies may involve greater risk than is associated with investing in more
established companies.  Small-to medium-size companies often have limited
product and market diversification, fewer financial resources or may be
dependent on a few key managers.  Any one of the foregoing may change suddenly
having an immediate impact on the value of the company's securities.
Furthermore, whenever the securities markets are experiencing rapid price
changes due to national economic trends, secondary growth securities have
historically been subject to exaggerated price changes.

      As a result of the Fund's policy to invest in companies in the small- to
medium-size category, the market prices of many of the securities purchased
and held by the Fund may fluctuate widely.  Any income received from
securities held by the Fund will be incidental, and an investor should not
consider a purchase of shares of the Fund as equivalent to a complete
investment program.

      The Fund's management fee is higher than that paid by most other
domestic equity funds.  However, the allocation of the Funds's assets in small-
to medium-size companies requires substantial research and analysis on the
part of the Fund's investment adviser in respect of such companies.

August  11, 1995



    FEDERATED SECURITIES CORP.

    Distributor
    A subsidiary of Federated Investors
    Federated Investors Tower
    Pittsburgh, PA  15222-3779
    
    G01335-02 (8/95)