<PAGE>
[LOGO OF HANSBERGER APPEARS HERE] --------------------
Hansberger
--------------------
Institutional
Series
--------------------
PROSPECTUS
MAY 1, 1999
International Fund
Emerging Markets Fund
Foreign Small Cap Fund
All Countries FundSM
Adviser: Hansberger Global Investors, Inc.
The Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the adequacy of this Prospectus. Any representation
to the contrary is a criminal offense.
<PAGE>
TABLE OF CONTENTS
Hansberger Institutional Series is a mutual fund that offers shares in four
separate investment portfolios (Funds). This prospectus gives you important
information about the Funds that you should know before investing and has been
arranged into different sections so that you can easily review this important
information. On the next page, there is some general information you should
know about before investing in the Funds, including information common to each
of the Funds.
For more detailed information about the Funds, please see:
<TABLE>
<S> <C>
International Fund........................................................ 2
Emerging Markets Fund..................................................... 5
Foreign Small Cap Fund.................................................... 8
All Countries Fund SM..................................................... 10
</TABLE>
For more detailed information about the following topics, please see:
<TABLE>
<S> <C>
The Funds' Other Investments.............................................. 12
More Information About Risk............................................... 12
The Investment Adviser.................................................... 13
Purchasing, Selling and Exchanging Fund Shares............................ 15
Dividends, Distributions and Taxes........................................ 19
Financial Highlights...................................................... 21
</TABLE>
To obtain more information about Hansberger Institutional Series, please refer
to the back cover of this prospectus.
PLEASE READ THIS PROSPECTUS AND KEEP IT FOR FUTURE REFERENCE.
<PAGE>
INTRODUCTION--PRINCIPAL RISKS COMMON TO ALL FUNDS
Each Fund is a mutual fund. A mutual fund pools shareholders' money and, using
a professional investment manager, invests it in securities like stocks and
bonds. The Funds are appropriate for long-term institutional investors who
seek exposure to global markets and are comfortable with the risks described
here. Before you invest, you should know a few things about investing in
mutual funds.
MANAGEMENT RISK
Each Fund seeks long-term capital growth as its investment goal and has its
own strategies for reaching that goal. Each Fund's assets are managed under
the direction of Hansberger Global Investors, Inc. (the "Adviser"). Still,
investing in a Fund involves risks, and there is no guarantee that a Fund will
achieve its goal. The Adviser makes judgments about several factors with
respect to each investment it makes on behalf of each Fund, including the
economy, but these judgments may not anticipate actual market movements or the
impact of economic conditions on issuers. In fact, no matter how good a job
the Adviser does, you could lose money on your investment in a Fund, just as
you could with other investments.
PRICE VOLATILITY
The value of your investment in a Fund is based on the market value (or price)
of the securities the Fund holds. These prices change daily due to economic
and other events that affect the securities markets generally, as well as
those that affect particular companies or governments. These price movements
sometimes called volatility, will vary depending on the types of securities
the Fund owns and the markets in which they trade. Historically, the equity
markets have moved in cycles, and the value of a Fund's equity securities may
fluctuate drastically from day-to-day. Individual companies may report poor
results or be negatively affected by industry and/or economic trends and
developments. The prices of securities issued by such companies may suffer a
decline in response. These factors contribute to price volatility, which is
the principal risk of investing in the Funds.
INTERNATIONAL INVESTING
Investing in foreign countries poses distinct risks since political and
economic events unique to a country or region will affect those markets and
their issuers. These events will not necessarily affect the U.S. economy or
similar issuers located in the United States. In addition, investments in
foreign countries are generally denominated in a foreign currency. As a
result, changes in the value of those currencies compared to the U.S. dollar
may affect (positively or negatively) the value of a Fund's investments. These
currency movements may happen separately from and in response to events that
do not otherwise affect the value of the security in the issuer's home
country.
EMERGING MARKETS
Emerging market countries are countries that the World Bank or the United
Nations considers to be emerging or developing. Emerging markets may be more
likely to experience political turmoil or rapid changes in market or economic
conditions than more developed countries. In addition, the financial stability
of issuers (including governments) in emerging market countries may be more
precarious than in other countries. As a result, there will tend to be an
increased risk of price volatility in the Fund's investments in emerging
market countries, which may be magnified by currency fluctuations relative to
the U.S. dollar.
1
<PAGE>
- -------------------------------------------------------------------------------
INTERNATIONAL FUND
- -------------------------------------------------------------------------------
FUND SUMMARY
INVESTMENT GOAL Long-term capital growth
RELATIVE SHARE PRICE VOLATILITY Medium to High
PRINCIPAL INVESTMENT STRATEGY Investing primarily in a diversified portfolio
of stocks and debt obligations of companies and
governments domiciled outside the United States
which the Adviser believes are undervalued
- -------------------------------------------------------------------------------
INVESTMENT STRATEGY
In selecting investments for the Fund, the Adviser, by engaging in its own
research and by reviewing research obtained through outside sources, seeks to
identify securities of companies that have a market value which the Adviser
believes is less than a company's intrinsic value based on its long-term
potential. The Adviser's portfolio investment decisions rely heavily on a
fundamental analysis of securities with a long-term investment perspective.
Fundamental analysis includes evaluating a company's prospects by focusing on
the quality of a company's management, its competitive position within its
industry, the financial strength of the company, the quality of its earnings
and the outlook for the company's future based on these and other similar
factors. The objective of this analysis is to identify undervalued securities
for the Fund, to hold them for the long-term and to achieve long-term capital
growth as the marketplace realizes the value of these securities over time.
The Adviser will also consider other factors in making portfolio investment
decisions including country and political risks, and economic and market
conditions.
The Adviser seeks to broaden the scope and increase the effectiveness of this
fundamental analysis by searching for undervalued securities in many countries
around the world. This global search provides the Adviser with more diverse
opportunities and flexibility to shift portfolio investments not only from
company to company and industry to industry, but also country to country, in
search of undervalued securities. Under normal market conditions, the Fund
will invest more than 80% of its assets in issuers located in at least three
countries other than the United States. This 80% does not include the cash
position of the Fund.
WHAT ARE THE RISKS OF INVESTING IN THE INTERNATIONAL FUND?
The Fund is exposed to management risk, price volatility, emerging markets
risk and the general risks of international investing.
2
<PAGE>
- -------------------------------------------------------------------------------
INTERNATIONAL FUND
- -------------------------------------------------------------------------------
PERFORMANCE INFORMATION
The bar chart and the performance table below illustrate the variability of
the International Fund's returns. Of course, the Fund's past performance does
not necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the total returns for the performance of the
Fund from year to year for two years.
[Chart Appears Here]
1997 1998
---- ----
- -1.46% -6.96%
<TABLE>
<CAPTION>
BEST QUARTER WORST QUARTER
------------ -------------
<S> <C>
14.54% -20.50%
fourth quarter third quarter
1998 1998
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
This table compares the Fund's average annual total return for the year ending
December 31, 1998, to those of the MSCI EAFE Index.
<TABLE>
<CAPTION>
SINCE FUND
INCEPTION
1 YEAR (12/30/96)
------ ----------
<S> <C> <C>
International Fund -6.96% -4.26%
MSCI EAFE Index* 20.33% 10.82%
</TABLE>
- --------
* MSCI EAFE Index is a widely-recognized index comprised of stocks traded in
the developed markets of Europe, Asia, and the Far East.
AN INDEX MEASURES THE MARKET
PRICES OF A SPECIFIC GROUP OF
SECURITIES IN A PARTICULAR MARKET
OR SECURITIES IN A MARKET SECTOR.
YOU CANNOT INVEST DIRECTLY IN AN
INDEX. UNLIKE A MUTUAL FUND, AN
INDEX DOES NOT HAVE AN INVESTMENT
ADVISER AND DOES NOT PAY ANY
EXPENSES OR IF AN INDEX HAD
EXPENSES, ITS PERFORMANCE WOULD BE
LOWER.
FUND FEES AND EXPENSES
Every mutual fund has operating expenses to pay for professional advisory,
shareholder, distribution, administration and custody services and other costs
of doing business. This table describes the highest fees and expenses that you
may currently pay if you hold shares of the Fund.
SHAREHOLDER FEES
<TABLE>
<S> <C>
Maximum Sales Charge (Load) None
Purchase Fee (as a percentage of amount purchased)+ 0.50%
Redemption Fee (as a percentage of amount redeemed)+ 0.50%
</TABLE>
- --------
+ These transaction fees represent the Adviser's estimate of transaction
costs, which include the costs of acquiring and disposing of the Fund's
portfolio securities. THE TRANSACTION FEES ARE NOT A SALES CHARGE OR LOAD,
AND ARE RETAINED BY THE FUND. The fees do not apply to, and are not charged
in connection with exchanges from one Fund to another, certain
insignificant transactions, including the reinvestment of dividends or
capital gain distributions, or transactions involving shareholders who
previously purchased shares that were not subject to the transaction fees.
3
<PAGE>
- -------------------------------------------------------------------------------
INTERNATIONAL FUND
- -------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
<TABLE>
<S> <C>
Management Fees 0.75%
Distribution and Service (12b-1) Fees None
Other Expenses 0.35%
----
Total Annual Fund Operating Expenses* 1.10%
</TABLE>
- --------
* The Fund's total actual annual fund operating expenses for the most recent
fiscal year were less than the amount shown above because the Adviser is
voluntarily waiving a portion of its fees and reimbursing other expenses in
order to keep total operating expenses at a specified level. The Adviser
may discontinue all or part of these waivers and reimbursements at any
time. With these fee waivers, the International Fund's actual total
operating expenses are 1.00%.
For more information about these fees, see "The Investment Adviser" and
"Purchasing, Selling and Exchanging Fund Shares."
EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated. The Example also
assumes that each year your investment has a 5% return and Fund expenses
remain the same. Although your actual costs and returns might be different,
your approximate costs of investing $10,000 in the Fund, if you redeem at the
end of one of the indicated time periods, would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C>
$214 $456 $717 $1,464
</TABLE>
and, your approximate costs of investing $10,000 in the Fund, if you do not
redeem at the end of one of the indicated time periods, would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C>
$162 $400 $656 $1,390
</TABLE>
4
<PAGE>
- -------------------------------------------------------------------------------
EMERGING MARKETS FUND
- -------------------------------------------------------------------------------
INVESTMENT SUMMARY
INVESTMENT GOAL Long-term capital growth
RELATIVE SHARE PRICE VOLATILITY High
PRINCIPAL INVESTMENT STRATEGY Investing primarily in a diversified portfolio
of publicly traded equity securities of
companies located in emerging markets that the
Adviser believes are undervalued and, to a
lesser degree, investing in private placement
emerging market equity securities
- -------------------------------------------------------------------------------
INVESTMENT STRATEGY
In selecting investments for the Fund, the Adviser, by engaging in its own
research and by reviewing research obtained through outside sources, seeks to
identify securities of companies that have a market value which the Adviser
believes is less than a company's intrinsic value based on its long-term
potential. The Adviser's portfolio investment decisions rely heavily on a
fundamental analysis of securities with a long-term investment perspective.
Fundamental analysis includes evaluating a company's prospects by focusing on
the quality of a company's management, its competitive position within its
industry, the financial strength of the company, the quality of its earnings
and the outlook for the company's future based on these and other similar
factors. The objective of this analysis is to identify undervalued securities
for the Fund, to hold them for the long-term and to achieve long-term capital
growth as the marketplace realizes the value of these securities over time.
The Adviser will also consider other factors in making portfolio investment
decisions including country and political risks, and economic and market
conditions.
The Adviser seeks to broaden the scope and increase the effectiveness of this
fundamental analysis by searching for undervalued securities in many countries
around the world. This global search provides the Adviser with more diverse
opportunities and flexibility to shift portfolio investments not only from
company to company and industry to industry, but also country to country, in
search of undervalued securities. The Fund's investments generally will
reflect a broad cross-section of countries, industries, and companies in order
to minimize risk.
WHAT ARE THE RISKS OF INVESTING IN THE EMERGING MARKETS FUND?
The Fund is exposed to management risk, price volatility, emerging markets
risk and the general risks of international investing.
5
<PAGE>
- -------------------------------------------------------------------------------
EMERGING MARKETS FUND
- -------------------------------------------------------------------------------
PERFORMANCE INFORMATION
The bar chart and the performance table below illustrate the variability of
the Emerging Markets Fund's returns. Of course, the Fund's past performance
does not necessarily indicate how the Fund will perform in the future.
This bar chart shows changes in the total returns for the performance of the
Fund from year to year for two years.
[Chart Appears Here]
1997 1998
---- ----
-15.11 -30.20
<TABLE>
<CAPTION>
BEST QUARTER WORST QUARTER
------------ --------------
<S> <C>
20.06% -26.07%
fourth quarter fourth quarter
1998 1997
</TABLE>
AVERAGE ANNUAL TOTAL RETURN
This table compares the Fund's average annual total return for the year ending
December 31, 1998, to those of the MSCI Emerging Markets Free Index.
<TABLE>
<CAPTION>
SINCE FUND
INCEPTION
1 YEAR (12/30/96)
------ ----------
<S> <C> <C>
Emerging Markets Fund -30.20% -23.04%
MSCI Emerging Markets Free Index* -25.34% -18.75%
</TABLE>
- --------
* MSCI Emerging Markets Free Index is a widely recognized index comprised of
stocks traded in the developing markets of the world that are open to
foreign investment.
AN INDEX MEASURES THE MARKET
PRICES OF A SPECIFIC GROUP OF
SECURITIES IN A PARTICULAR MARKET
OR SECURITIES IN A MARKET SECTOR.
YOU CANNOT INVEST DIRECTLY IN AN
INDEX. UNLIKE A MUTUAL FUND, AN
INDEX DOES NOT HAVE AN INVESTMENT
ADVISER AND DOES NOT PAY ANY
EXPENSES OR IF AN INDEX HAD
EXPENSES, ITS PERFORMANCE WOULD BE
LOWER.
FUND FEES AND EXPENSES
Every mutual fund has operating expenses to pay for professional advisory,
shareholder, distribution, administration and custody services and other costs
of doing business. This table describes the highest fees and expenses that you
may currently pay if you hold shares of the Fund.
SHAREHOLDER FEES
<TABLE>
<S> <C>
Maximum Sales Charge (Load) None
Purchase Fee (as a percentage of amount purchased)+ 1.00%
Redemption Fee (as a percentage of amount redeemed)+ 1.00%
</TABLE>
- --------
+ These transaction fees represent the Adviser's estimate of transaction
costs, which include the costs of acquiring and disposing of the Fund's
portfolio securities. THE TRANSACTION FEES ARE NOT A SALES CHARGE OR LOAD,
AND ARE RETAINED BY THE FUND. The fees do not apply to, and are not charged
in connection with exchanges from one Fund to another, certain
insignificant transactions, including the reinvestment of dividends or
capital gain distributions, or transactions involving shareholders who
previously purchased shares that were not subject to the transaction fees.
6
<PAGE>
- -------------------------------------------------------------------------------
EMERGING MARKETS FUND
- -------------------------------------------------------------------------------
ANNUAL FUND OPERATING EXPENSES
<TABLE>
<S> <C>
Management Fees 1.00%
Distribution and Service (12b-1) Fees None
Other Expenses 0.68%
----
Total Annual Fund Operating Expenses 1.68%*
</TABLE>
- --------
* The Fund's total actual annual fund operating expenses for the most recent
fiscal year were less than the amount shown above because the Adviser is
voluntarily waiving a portion of its fees and reimbursing other expenses in
order to keep total operating expenses at a specified level. The Adviser
may discontinue all or part of these waivers and reimbursements at any
time. With these fee waivers, the Emerging Markets Fund's actual total
operating expenses are 1.25%.
For more information about these fees, see "The Investment Adviser" and
"Purchasing, Selling and Exchanging Fund Shares."
EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated. The Example also
assumes that each year your investment has a 5% return and Fund expenses
remain the same. Although your actual costs and returns might be different,
your approximate costs of investing $10,000 in the Fund, if you redeem at the
end of one of the indicated time periods, would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C>
$374 $740 $1,130 $2,226
</TABLE>
and, your approximate costs of investing $10,000 in the Fund, if you do not
redeem at the end of one of the indicated time periods, would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C>
$271 $630 $1,013 $2,087
</TABLE>
7
<PAGE>
- -------------------------------------------------------------------------------
FOREIGN SMALL CAP FUND
- -------------------------------------------------------------------------------
FUND SUMMARY
INVESTMENT GOAL Long-term capital growth
RELATIVE SHARE PRICE VOLATILITY Medium to High
PRINCIPAL INVESTMENT STRATEGY Investing primarily in a diversified portfolio
of equity securities of issuers with relatively
small market capitalizations (share price times
number of equity securities outstanding)
located outside the United States which the
Adviser believes are undervalued
- -------------------------------------------------------------------------------
INVESTMENT STRATEGY
In selecting investments for the Fund, the Adviser, by engaging in its own
research and by reviewing research obtained through outside sources, seeks to
identify securities of companies that have a market value which the Adviser
believes is less than a company's intrinsic value based on its long-term
potential. The Adviser's portfolio investment decisions rely heavily on a
fundamental analysis of securities with a long-term investment perspective.
Fundamental analysis includes evaluating a company's prospects by focusing on
the quality of a company's management, its competitive position within its
industry, the financial strength of the company, the quality of its earnings
and the outlook for the company's future based on these and other similar
factors. The objective of this analysis is to identify undervalued securities
for the Fund, to hold them for the long-term and to achieve long-term capital
growth as the marketplace realizes the value of these securities over time.
The Adviser will also consider other factors in making portfolio investment
decisions including country and political risks, and economic and market
conditions.
The Adviser seeks to broaden the scope and increase the effectiveness of this
fundamental analysis by searching for undervalued securities in many countries
around the world. This global search provides the Adviser with more diverse
opportunities and flexibility to shift portfolio investments not only from
company to company and industry to industry, but also country to country, in
search of undervalued securities. Under normal market conditions, the Fund
will invest at least 70% of the value of its total assets in (1) companies
located in developing countries with individual market capitalizations of less
than $1.5 billion USD (at the time of purchase) and (2) companies located in
developed countries, other than the United States, with individual market
capitalizations of less than $1.5 billion USD (at the time of purchase).
WHAT ARE THE RISKS OF INVESTING IN THE FOREIGN SMALL CAP FUND?
Because the Fund may invest without limit in smaller capitalization stocks,
the Fund is exposed to certain risks in addition to management risk, price
volatility, emerging markets risk and the general risks of international
investing.
SMALLER CAPITALIZATION STOCKS
The Fund's investments in smaller capitalization stocks can involve greater
risk than investing in stocks of larger, more established companies. For
example, smaller capitalization companies often have limited product lines,
markets, or financial resources, may be dependent on management by one or a
few key persons, and can be more susceptible to losses. Also, their securities
may be thinly traded (and therefore have to be sold at a discount from current
prices or sold in small lots over an extended period of time), may be followed
by fewer investment research analysts (limiting the information available to
the Adviser to analyze) and may be subject to wider price swings and thus may
create a greater chance of loss than securities of larger capitalization
companies. Finally, the cost of purchasing and selling stocks of smaller
capitalization companies (transaction costs) may be higher than those of
larger capitalization companies.
8
<PAGE>
- -------------------------------------------------------------------------------
FOREIGN SMALL CAP FUND
- -------------------------------------------------------------------------------
PERFORMANCE INFORMATION
The Foreign Small Cap Fund has not commenced operations and, therefore, does
not yet have a performance history.
FUND FEES AND EXPENSES
Every mutual fund has operating expenses to pay for professional advisory,
shareholder, distribution, administration and custody services and other costs
of doing business. This table describes the highest fees and expenses that you
may currently pay if you hold shares of the Fund.
SHAREHOLDER FEES
<TABLE>
<S> <C>
Maximum Sales Charge (Load) None
Purchase Fee (as a percentage of amount purchased)+ 1.00%
Redemption Fee (as a percentage of amount redeemed)+ 1.00%
</TABLE>
- --------
+ These transaction fees represent the Adviser's estimate of transaction
costs, which include the costs of acquiring and disposing of the Fund's
portfolio securities. The transaction fees are not a sales charge or load,
and are retained by the Fund. The fees do not apply to, and are not charged
in connection with exchanges from one Fund to another, certain
insignificant transactions, including the reinvestment of dividends or
capital gain distributions, or transactions involving shareholders who
previously purchased shares that were not subject to the transaction fees.
ANNUAL FUND OPERATING EXPENSES
<TABLE>
<S> <C>
Management Fees 0.90%
Distribution and Service (12b-1) Fees None
Other Expenses* 0.35%
----
Total Annual Fund Operating Expenses 1.25%
</TABLE>
- --------
* Other expenses are based on estimated amounts for the current fiscal year.
For more information about these fees, see "The Investment Adviser" and
"Purchasing, Selling and Exchanging Fund Shares."
EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated. The Example also
assumes that each year your investment has a 5% return and Fund expenses
remain the same. Although your actual costs and returns might be different,
your approximate costs of investing $10,000 in the Fund, if you redeem at the
end of one of the indicated time periods, would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS
------ -------
<S> <C>
$331 $608
</TABLE>
and, your approximate costs of investing $10,000 in the Fund, if you do not
redeem at the end of one of the indicated time periods, would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS
------ -------
<S> <C>
$227 $497
</TABLE>
9
<PAGE>
- -------------------------------------------------------------------------------
ALL COUNTRIES FUND SM
- -------------------------------------------------------------------------------
FUND SUMMARY
INVESTMENT GOAL Long-term capital growth
RELATIVE SHARE PRICE VOLATILITY Medium to High
PRINCIPAL INVESTMENT STRATEGY Investing primarily in a diversified
portfolio of stocks and debt obligations of
companies and governments domiciled in any
country which the Adviser believes are
undervalued, including the United States
- -------------------------------------------------------------------------------
INVESTMENT STRATEGY
In selecting investments for the Fund, the Adviser, by engaging in its own
research and by reviewing research obtained through outside sources, seeks to
identify securities of companies that have a market value which the Adviser
believes is less than a company's intrinsic value based on its long-term
potential. The Adviser's portfolio investment decisions rely heavily on a
fundamental analysis of securities with a long-term investment perspective.
Fundamental analysis includes evaluating a company's prospects by focusing on
the quality of a company's management, its competitive position within its
industry, the financial strength of the company, the quality of its earnings
and the outlook for the company's future based on these and other similar
factors. The objective of this analysis is to identify undervalued securities
for the Fund, to hold them for the long-term and to achieve long-term capital
growth as the marketplace realizes the value of these securities over time.
The Adviser will also consider other factors in making portfolio investment
decisions including country and political risks, and economic and market
conditions. The Adviser seeks to broaden the scope and increase the
effectiveness of this fundamental analysis by searching for undervalued
securities in many countries around the world. This global search provides the
Adviser with more diverse opportunities and flexibility to shift portfolio
investments not only from company to company and industry to industry, but
also country to country, in search of undervalued securities. Under normal
market conditions the Fund will invest its assets in at least three countries,
which may include the United States.
WHAT ARE THE RISKS OF INVESTING IN THE ALL COUNTRIES FUND?
The Fund is exposed to management risk, price volatility, emerging markets
risk and the general risks of international investing.
10
<PAGE>
- -------------------------------------------------------------------------------
ALL COUNTRIES FUND SM
- -------------------------------------------------------------------------------
PERFORMANCE INFORMATION
The All Countries Fund SM has not commenced operations and, therefore, does
not yet have a performance history.
FUND FEES AND EXPENSES
Every mutual fund has operating expenses to pay for professional advisory,
shareholder, distribution, administration and custody services and other costs
of doing business. This table describes the highest fees and expenses that you
may currently pay if you hold shares of the Fund.
SHAREHOLDER FEES
<TABLE>
<S> <C>
Maximum Sales Charge (Load) None
Purchase Fee (as percentage of amount purchased)+ .50%
Redemption Fee (as a percentage of amount redeemed)+ .50%
</TABLE>
- --------
+ These transaction fees represent the Adviser's estimate of transaction
costs, which include the costs of acquiring and disposing of the Fund's
portfolio securities. THE TRANSACTION FEES ARE NOT A SALES CHARGE OR LOAD,
AND ARE RETAINED BY THE FUND. The fees do not apply to, and are not charged
in connection with exchanges from one Fund to another, certain
insignificant transactions, including the reinvestment of dividends or
capital gain distributions, or transactions involving shareholders who
previously purchased shares that were not subject to the transaction fees.
ANNUAL FUND OPERATING EXPENSES
<TABLE>
<S> <C>
Management Fees 0.75%
Distribution and Service (12b-1) Fees None
Other Expenses* 0.25%
----
Total Annual Fund Operating Expenses 1.00%
</TABLE>
- --------
* Other expenses are based on estimated amounts for the current fiscal year.
For more information about these fees, see "The Investment Adviser" and
"Purchasing, Selling and Exchanging Fund Shares."
EXAMPLE
This Example is intended to help you compare the cost of investing in the Fund
with the cost of investing in other mutual funds. The Example assumes that you
invest $10,000 in the Fund for the time periods indicated. The Example also
assumes that each year your investment has a 5% return and Fund expenses
remain the same. Although your actual costs and returns might be different,
your approximate costs of investing $10,000 in the Fund, if you redeem at the
end of one of the indicated time periods, would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS
------ -------
<S> <C>
$204 $425
</TABLE>
and, your approximate costs of investing $10,000 in the Fund, if you do not
redeem at the end of one of the indicated time periods, would be:
<TABLE>
<CAPTION>
1 YEAR 3 YEARS
------ -------
<S> <C>
$152 $368
</TABLE>
11
<PAGE>
THE FUNDS' OTHER INVESTMENTS
This prospectus describes each Fund's primary investment strategies and the
Funds will normally invest at least 65% of their assets in the types of
securities described in this prospectus. However, although each Fund generally
invests in common stock, a Fund may also invest in preferred stocks and
certain debt securities, rated or unrated, such as convertible bonds and bonds
selling at a discount, when the Adviser believes the potential for
appreciation will equal or exceed that available from investments in common
stock. Each Fund may also invest in warrants or rights to subscribe to or
purchase such securities, and sponsored or unsponsored American Depositary
Receipts ("ADRs"), European Depositary Receipts ("EDRs"), Global Depositary
Receipts ("GDRs") and other depositary receipts (collectively, "Depositary
Receipts"). Each Fund may also lend its portfolio securities, sell securities
short, and borrow money for investment purposes (i.e., "leverage" its
portfolio). In addition, each Fund may invest in closed-end investment
companies holding foreign securities, and enter into transactions in options
on securities, securities indices and foreign currencies, forward foreign
currency contracts, futures contracts and related options, and swap
transactions, as well as other derivative instruments. When deemed appropriate
by the Adviser, the Fund may invest cash balances in repurchase agreements and
other money market investments to maintain liquidity in an amount sufficient
to meet expenses or for day-to-day operating purposes. These investment
techniques are described in detail in the Statement of Additional Information
(SAI). Of course, there is no guarantee that any Fund will achieve its
investment goal.
The investments and strategies described throughout this prospectus are those
that the Funds use under normal conditions. During unusual economic or market
conditions, or for temporary defensive or liquidity purposes, each Fund may
invest up to 100% of its assets in cash, money market instruments, repurchase
agreements and short-term obligations that would not ordinarily be consistent
with the Funds' objectives. The Funds will do so only if the Adviser believes
that the risk of loss outweighs the opportunity for gains or income.
MORE INFORMATION ABOUT RISK
INTERNATIONAL INVESTING
Each of the Funds invests primarily in equity securities of issuers located in
foreign countries. Investment in securities of foreign issuers involves some
risks different from, or in addition to, those affecting investments in
securities of U.S. issuers, including:
Regulation There may be less government supervision and
regulation of foreign securities exchanges,
brokers and listed companies than in the U.S.
Political/Economy A foreign jurisdiction might impose or change
withholding taxes or other levies on income
payable in connection with foreign securities.
There are risks of seizure, nationalization or
expropriation of a foreign issuer or foreign
deposits, and adoption of foreign governmental
restrictions such as capital or exchange
controls. Many emerging or developing countries
have less stable political and economic
environments than some more developed
countries.
Liquidity and Concentration Many foreign securities markets have
substantially less volume than U.S. national
securities exchanges. Available investments in
emerging countries may be highly concentrated
in a small number of issuers, or the issuers
may be unseasoned and/or have significantly
smaller market capitalization than in the U.S.
or more developed countries.
12
<PAGE>
Taxes
Dividends and interest paid by foreign issuers
may be subject to withholding and other foreign
taxes, which may decrease the net return on
foreign investments.
Brokerage Brokerage Commissions and other transaction
costs on foreign securities exchanges are
generally higher than in the U.S.
YEAR 2000 RISKS
Like other mutual funds (and most organizations around the world), the Funds
could be affected by computer problems related to the transition to the year
2000. While no one knows if these problems will have any impact on the Funds
or on the financial markets in general, the Funds are taking steps to protect
investors. These include efforts to ensure that the Funds' own systems are
prepared to make the transition to the year 2000, and to determine that the
problem will not affect the systems used by the Funds' major service
providers. Whether these steps will be effective can only be known for certain
in the year 2000. Please note that Year 2000-related computer problems may
have a greater negative impact on investments in foreign countries, especially
in emerging markets.
THE INVESTMENT ADVISER
Hansberger Global Investors, Inc. is the Investment Adviser to the Trust. The
Adviser, with principal offices at 515 East Las Olas Blvd., Fort Lauderdale,
Florida, conducts a worldwide portfolio management business that provides a
broad range of portfolio management services to customers in the United States
and abroad. See "INVESTMENT ADVISER" in the SAI.
The Adviser provides each Fund with investment advice and portfolio management
services pursuant to an Investment Advisory Agreement (the "Advisory
Agreement"), and, subject to the supervision of the Board of Trustees, makes
each Fund's day-to-day investment decisions, arranges for the execution of
portfolio transactions and generally manages each Fund's investments. Under
the terms of its Advisory Agreement, each Fund pays the Adviser a monthly
advisory fee, accrued daily based on the Fund's average daily net assets, at
the annual rates set forth in the table below. Because each Fund invests
internationally, these advisory fees are higher than those of most investment
companies, but the Adviser believes the fees are comparable to those of
investment companies with similar objectives and policies.
<TABLE>
<CAPTION>
FUND ADVISORY FEE
---- ------------
<S> <C>
International Fund 0.75%
Emerging Markets Fund 1.00%
Foreign Small Cap Fund 0.90%
All Countries Fund SM 0.75%
</TABLE>
13
<PAGE>
PORTFOLIO MANAGEMENT TEAMS
Emerging THOMAS L. HANSBERGER is the Chairman and Chief Executive
Markets All Officer of the Adviser and the Trust. Mr. Hansberger is
Countries primarily responsible for the day-to-day management of the
Emerging Markets and All Countries Funds. Before forming the
Adviser in 1994, Mr. Hansberger had served as Chairman,
President and Chief Executive Officer of Templeton
Worldwide, Inc., the parent holding company of the Templeton
group of companies, from 1985 to 1992. While at Templeton,
Mr. Hansberger served as director of research and was an
officer, director or primary portfolio manager for several
Templeton Mutual Funds.
International JAMES E. CHANEY joined the Adviser in 1996 as Chief
Investment Officer and is primarily responsible for the day
to day management of the International Fund. From 1993 to
1996, prior to joining the Adviser, he was Executive Vice
President for Templeton Worldwide and a senior member of its
Portfolio Management/Strategy Committee. While at Templeton,
Mr. Chaney managed numerous accounts, including the $2.5
billion Templeton Institutional Funds Inc. Foreign Equity
Series.
Foreign Small
Cap LAURETTA (RETZ) REEVES joined the Adviser in 1996 as a
Managing Director, portfolio manager and research analyst.
She also serves as Director of Research for the Adviser. Ms.
Reeves is primarily responsible for the day-to-day
management of the Foreign Small Cap Fund. From 1987 to 1996,
prior to joining the Adviser, she was Senior Vice President
of Templeton Worldwide in the research and portfolio
management group with primary responsibility for numerous
industries and countries, including global chemicals and
European banks.
Emerging FRANCISCO ALZURU joined the Adviser in 1994 as a Managing
Markets All Director of Latin America, portfolio manager and research
Countries analyst, specializing in Latin America. From 1990 to 1994,
prior to joining the Adviser, he worked at Vestcorp Partners
as their Latin American analyst.
Emerging
Markets All AJIT DAYAL joined the Adviser in 1998 as Managing Director
Countries of India. From 1995 to 1998, prior to joining the Adviser,
he was portfolio manager of a venture capital fund for
Walden International Investment Group, and before that, from
1992 to 1995, he was a Director of all Jardine Fleming
companies in India, with direct responsibility for research
and investment management.
International JOHN FENLEY joined the Adviser in 1997 as a research
analyst, responsible for research coverage of global
equities. From 1995 to 1997, prior to joining the Adviser,
he was the portfolio manager for the Institutional
Investment Management Department of Sun Trust Bank, and
before that, from 1990 to 1995, served as a portfolio
manager and equity analyst for Fifth Third Bank.
14
<PAGE>
Emerging
Markets AUREOLE FOONG joined the Adviser in 1997 as Director of
Asian Research. From 1994 to 1997, prior to joining the
Adviser, he was a Director of Peregrine Asset Management
where he was responsible for several mutual fund and private
accounts investing in regional Asian markets.
International VICTORIA GRETZKY joined the Adviser in 1996 as a research
analyst. From 1993 to 1996, prior to joining the Adviser,
she was a research analyst for Optimum Consulting, a Russian
based firm which specialized in restructuring Russian
companies during privatization.
Foreign Small CHARLES F. GULDEN joined the Adviser in 1996 as a Managing
Cap Director, portfolio manager and research analyst. From 1989
to 1996, prior to joining the Adviser, he was Vice President
and Director of Templeton Worldwide in the research and
portfolio management group with primary research
responsibility for global health care services and
agricultural chemical sectors.
International
JOHN HOCK joined the Adviser in 1996 as a research analyst.
From 1990 to 1996, prior to joining the Adviser, he was a
Vice President and senior analyst in global securities
research and economics group at Merrill Lynch.
Foreign Small RON HOLT joined the Adviser in 1997 as a research analyst.
Cap From 1991 to 1997, prior to joining the Adviser, he was a
Vice President in the Corporate and Institutional Client
Group at Merrill Lynch.
Emerging
Markets All ROBERT MAZUELOS joined the Adviser in 1995 as a research
Countries analyst. From 1991 to 1995, prior to joining the Adviser, he
was a performance analyst at Templeton Investment Counsel,
Inc. where he was responsible for return analysis on
separate accounts and mutual funds.
Emerging VLADIMIR TYURENKOV joined the Adviser in 1995 as Managing
Markets Director of Eastern Europe and Russia, portfolio manager and
Foreign Small research analyst. From 1990 to 1993, prior to joining the
Cap Adviser, he worked for the Russian Government and from 1993
to 1995 he worked extensively on the Pepperdine University
Russian Conversion and Privatization Program.
PURCHASING, SELLING AND EXCHANGING FUND SHARES
You may purchase, sell (redeem) and exchange shares of each Fund on any day
when the New York Stock Exchange ("NYSE") is open for business (a "business
day") so long as the Custodian is also open for business that day. The
purchase price of shares is a Fund's net asset value per share next determined
after receipt of your purchase order, plus any applicable transaction fee; the
amount of any transaction fee is deducted from the total amount of your
investment, and the remaining amount of your investment is invested in Fund
shares. The redemption price of shares is a Fund's net asset value per share
next determined after receipt of your redemption request, less any applicable
transaction fee. Each Fund's net asset value per share is determined on each
business day at the regular close of trading of the NYSE (currently 4:00 p.m.,
Eastern time). Purchase orders and redemption requests received prior to this
time on any business day will be executed at the price computed on that day;
orders and requests received after the regular close of the NYSE will be
executed at the price computed on the next business day. The Trust reserves
the right to refuse any order for purchase of Shares.
15
<PAGE>
HOW TO PURCHASE FUND SHARES
How to Open an Account. To open an account, you must complete an Account
Registration Form and send it to the Trust, and either send in your check or
arrange for a wire transfer. Your initial investment must be for at least
$1,000,000 unless you have received a waiver from the Adviser. For purposes of
meeting the required minimum investments, the Trust will aggregate all
accounts under common ownership or control, including accounts of spouses and
minor children. There is no minimum for employer sponsored 401(k) plans that
have more than 100 employee participants.
BY CHECK Make your check (or other negotiable bank draft or money
order) payable to "Hansberger Institutional Series," and
mail it with your completed and signed Account Registration
Form to:
Hansberger Institutional Series
c/o Chase Global Funds Services Company
P.O. Box 2973
73 Tremont Street
Boston, MA 02208
Checks must be drawn on U.S. banks.
BY WIRE Have your bank send a Federal Funds wire or a bank wire to
the Trust, and mail your completed and signed Account
Registration Form to:
Hansberger Institutional Series
c/o Chase Global Funds Services Company
P.O. Box 2973
73 Tremont Street
Boston, MA 02208
The Trust will accept your purchase order before receiving
you Account Registration Form only if you have provided
certain information with your wire.
You must follow these steps to purchase shares by wire:
First, telephone the Trust at 1-800-414-6927 to receive a
wire control number. To be issued an account number, you
will need to provide a written application with your name,
address, telephone number, Social Security or Tax
Identification Number, the amount being wired, and the name
of the bank sending the wire. Second, instruct your bank to
wire the specified amount to the following account and/or
wire control number (be sure to have your bank include your
account number and the Fund's name):
The Chase Manhattan Bank
ABA Number 021000021
DDA Number 910 2 777076
Attn: Hansberger Institutional Series
Ref: (Fund name, account number, account name,
wire control number).
Federal Funds wires cannot be made on any federal holiday
restricting wire transfers, even if the NYSE is open on that
day. Liability of the Fund or its agents for fraudulent or
unauthorized wire instructions may be limited. See
"Telephone Transactions."
Your bank may charge a service fee for sending a Federal
Funds wire or bank wire.
16
<PAGE>
Letter of Intent. You may make an initial investment of less than $1 million
if you execute a letter of intent ("Letter") which expresses your intention to
invest at least $1 million in the Funds within 13 months. The minimum initial
investment under a Letter is $100,000. If you do not invest at least $1
million in shares of the Funds or other funds advised by the Adviser within
the 13-month period from execution of the Letter, the shares actually
purchased may be involuntarily redeemed and the proceeds sent to you at your
address of record. Any redemptions you make during the 13-month period will be
subtracted from the amount of Shares purchased for purposes of determining
whether the terms of the Letter have been completed.
How to Add to Your Investment. You may purchase additional shares for your
account at any time by mailing a check or by wiring funds to the Fund
according to the procedures above. If wiring funds, please call 1-800-414-6927
to receive a wire control number. Your check, a cover letter, or your wire
instructions must specify the name of the Fund, the name on your account and
your account number, and you must call the Fund before wiring funds. Your
check or wire must be for at least $100,000.
OTHER PURCHASE INFORMATION
Payment for shares of a Fund must be in United States dollars, unless you have
received the Fund's prior written approval to make payment in other currencies
or by tendering securities.
No share certificates will be issued. All shares purchased for your account
will be confirmed to you and credited to your account on the Fund's books
maintained by the Transfer Agent.
To ensure that checks are collected, you may not redeem shares purchased by
check until payment for the purchase has been received; receipt may take up to
eight business days after purchase. If your purchase is canceled due to
nonpayment or because your check does not clear, you will be responsible for
any loss incurred by the Trust or its agents, and you may be restricted from
making future investments in the Trust. If you are already a shareholder, the
Trust may redeem shares from your account(s) as reimbursement for any such
loss.
If an investment in the Funds is made through a broker that has executed a
dealer agreement with the Trust, the Adviser or one of its affiliates may make
a payment out of its own resources to such dealer in an amount not to exceed
0.25% of the amount invested. Dealers may contact the Adviser for additional
information.
Investors may also purchase shares of a Fund through banks and registered
broker-dealers who do not have a dealer agreement with the Funds. Those banks
and broker-dealers, who make purchases for their customers, may charge a fee
for such services.
The Trust reserves the right to reject any purchase order for shares if the
Trust or its agents determine that accepting such order would not be in the
best interest of a Fund or its existing shareholders.
HOW THE FUNDS CALCULATE NAV
NAV for one Fund share is the value of that share's portion of all of the net
assets in a Fund. In calculating NAV, the Funds generally value a Fund's
portfolio securities at their market price. If market prices are unavailable
or are unreliable, fair value prices may be determined in good faith using
methods approved by the Board of Trustees. The Funds hold portfolio securities
that are listed on foreign exchanges. These securities may trade on weekends
or other days when the Funds do not calculate NAV. As a result, the value of
these investments may change on days when you cannot purchase or sell Fund
shares.
17
<PAGE>
MINIMUM PURCHASES
To purchase shares of the Funds for the first time, you must invest at least
$1,000,000 in any such Fund. To purchase additional shares of the Funds, you
must invest at least $100,000. The Funds may accept investments of smaller
amounts at their discretion.
HOW TO SELL YOUR FUND SHARES
You may sell (usually called "redeem") your shares on any Business Day by
contacting the Funds directly by mail or telephone. Your redemption proceeds
may be more or less than the purchase price of your shares depending on, among
other factors, the market value of the investment securities held by the Fund
at the time you redeem. The sale price of each share will be the next NAV
determined after the Funds receive your request.
BY MAIL Send your redemption request to:
Hansberger Institutional Series
c/o Chase Global Funds Services Company
P.O. Box 2973
73 Tremont Street
Boston, MA 02208
BY TELEPHONE If you have telephone transaction privileges, you can
request a redemption of your shares by calling the Fund at
1-800-414-6927 prior to 4:00 P.M. Eastern Time, to receive
that day's closing net asset value; redemption proceeds will
be mailed to you or wired to your bank.
RECEIVING YOUR MONEY
Normally, the Funds will send your sale proceeds within five Business Days
after they receive your request. Your proceeds can be wired to a bank account
or sent to you by check. IF YOU RECENTLY PURCHASED YOUR SHARES BY CHECK,
REDEMPTION PROCEEDS MAY NOT BE AVAILABLE UNTIL YOUR CHECK HAS CLEARED (WHICH
MAY TAKE UP TO 15 BUSINESS DAYS).
REDEMPTIONS IN KIND
Each Fund may, although it does not intend to do so under normal
circumstances, pay redemption proceeds in whole or in part by a distribution
in kind of securities held in its portfolio, in conformity with applicable SEC
rules.
SUSPENSION OF YOUR RIGHT TO SELL YOUR SHARES
The Funds may suspend your right to sell your shares if the NYSE restricts
trading, the SEC declares an emergency or for other reasons. More information
about this is in the SAI.
CLOSING SMALL ACCOUNTS
Due to the relatively high cost of maintaining smaller accounts, the Trust
reserves the right to redeem all of your shares if your redemptions cause your
account value to drop below the minimum required investment. The Trust will
not redeem an account whose value has dropped solely because of market
reductions in net asset value. If at any time your account value does not
equal or exceed the required minimum, you may be notified of this fact. You
will be allowed at least 60 days to add to your investment before any
involuntary redemption is processed.
18
<PAGE>
SIGNATURE GUARANTEES
To protect your account, the Trust and its agents from fraud, signature
guarantees are required for certain redemptions to verify the identity of the
person who has authorized a redemption from your account. A signature
guarantee is not required for redemptions of $50,000 or less, requested by and
payable to all Shareholders of record. Please contact the Trust for further
information.
HOW TO EXCHANGE YOUR SHARES
You may exchange your shares of any Fund for shares of any other Fund on any
Business Day by contacting the Funds directly by mail or telephone. This
exchange privilege may be changed or canceled at any time upon 60 days'
notice. When you exchange shares, you are really selling your shares and
buying other Fund shares. So, your sale price and purchase price will be based
on the NAV next calculated after the Funds receive your exchange request.
PURCHASES OR EXCHANGES BY TIMING ACCOUNTS
Market timing or allocation services ("Timing Accounts") generally include
accounts administered so as to redeem or purchase Shares based upon certain
predetermined market indicators. The Trust reserves the right to temporarily
or permanently terminate the exchange privilege or reject any specific
purchase order for any Timing Account or any person whose transactions seem to
follow a timing pattern. In addition, the Trust reserves the right to refuse
the purchase side of a redemption and purchase request by any Timing Account,
person, or group if, in the Adviser's judgement, a Fund would be unable to
invest effectively in accordance with its investment objectives and policies,
or would otherwise potentially be adversely affected. A Shareholder's
exchanges into a Fund may be restricted or refused if a Fund receives or
anticipates simultaneous orders affecting significant portions of the Fund's
assets. In particular, a pattern of exchanges, purchases and redemptions that
coincides with a "market timing" strategy may be disruptive to a Fund and
therefore may be refused.
TELEPHONE TRANSACTIONS
Purchasing, selling and exchanging Fund shares over the telephone is extremely
convenient, but not without risk. Although we have certain safeguards and
procedures to confirm the identity of callers and the authenticity of
instructions, the Funds are not responsible for any losses or costs incurred
by following telephone instructions the Funds reasonably believe to be
genuine. If you transact with the Funds over the telephone, you will generally
bear the risk of any loss.
DIVIDENDS, DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS
Each Fund expects to distribute substantially all of its net investment income
in the form of dividends at least annually. Net capital gains, if any, will be
distributed annually.
You will receive dividends and distributions in the form of additional Fund
shares unless you elect to receive payment in cash. To elect cash payment, you
must check off the appropriate box in the Distribution Option Section on the
Account Registration Form or notify the Fund in writing prior to the date of
the distribution. Your election will be effective for dividends and
distributions paid after the Fund receives your written notice. To cancel your
election, simply send the Funds written notice.
TAXES
PLEASE CONSULT YOUR TAX ADVISER REGARDING YOUR SPECIFIC QUESTIONS ABOUT
FEDERAL, STATE AND LOCAL INCOME TAXES. Below we have summarized some important
tax issues that affect the Funds and their shareholders. This summary is based
on current tax laws, which may change.
19
<PAGE>
Each Fund is treated as a separate entity for federal income tax purposes.
Each Fund intends to qualify for the special tax treatment afforded regulated
investment companies under Subchapter M of the Internal Revenue Code of 1986,
as amended (the "Code"), so that each Fund will be relieved of federal income
tax on that part of its net investment income and net capital gain (the excess
of net long-term capital gain over net short-term capital loss) that is
distributed to shareholders.
Each Fund distributes substantially all of its net investment income
(including, for this purpose, net short-term capital gain) to shareholders.
Dividends from a Fund's net investment income are taxable to shareholders as
ordinary income, whether received in cash or in additional shares.
Distributions of net capital gain are taxable to shareholders as long-term
capital gain, regardless of how long shareholders have held their shares. Each
Fund sends reports annually to its shareholders of the federal income tax
status of all distributions made during the preceding year.
Each Fund intends to make sufficient distributions or deemed distributions of
its ordinary income and capital gain net income (the excess of short-term and
long-term capital gains over short-term and long-term capital losses) as to
avoid the 4 percent excise tax imposed on undistributed income of regulated
investment companies.
Dividends and other distributions declared by a Fund in October, November or
December of any year and payable to shareholders of record on a date in such
month will be deemed to have been paid by the Fund and received by the
shareholders on the last day of that year if the distributions are paid by the
Fund at any time during the following January.
The sale or redemption of shares may result in taxable gain or loss to the
redeeming shareholder, depending upon whether the fair market value of the
redemption proceeds exceeds or is less than the shareholder's adjusted basis
in the redeemed shares. The character of such a gain or loss for tax purposes
will depend on how long you have held your shares.
Investment income received by a Fund from sources within foreign countries may
be subject to foreign income taxes withheld at the source. Information on
taxation of a Fund by certain foreign countries is set out in the SAI. To the
extent that a Fund is liable for foreign income taxes so withheld, the Fund
intends to operate so as to meet the requirements of the Code to pass through
to the shareholders credit for foreign income taxes paid. Although each Fund
intends to meet Code requirements to pass through credit for such taxes, there
can be no assurance that each Fund will be able to do so.
THE TAX DISCUSSION SET FORTH ABOVE IS INCLUDED HEREIN FOR GENERAL INFORMATION
ONLY. YOU SHOULD CONSULT YOUR OWN TAX ADVISERS ABOUT THE TAX CONSEQUENCES OF
AN INVESTMENT IN THE FUND. Each Fund will distribute substantially all of its
income and capital gains, if any. The dividends and distributions you receive
may be subject to federal, state and local taxation, depending upon your tax
situation. Capital gains distributions may be taxable at different rates
depending on the length of time a Fund holds its portfolio securities. EACH
SALE OR EXCHANGE OF FUND SHARES IS A TAXABLE EVENT.
MORE INFORMATION ABOUT TAXES IS IN THE FUNDS' STATEMENT OF ADDITIONAL
INFORMATION.
20
<PAGE>
FINANCIAL HIGHLIGHTS
The tables that follow present performance information about the International
Fund and the Emerging Markets Fund. This information is intended to help you
understand each Fund's financial performance for the past two years. Some of
this information reflects financial information for a single Fund share. The
total returns in the tables represent the return that you would have earned on
an investment in a Fund, assuming you reinvested all of your dividends and
distributions.
This information has been audited by Arthur Andersen LLP, independent public
accountants. Their report, along with each Fund's financial statements,
appears in the annual report that accompanies the Statement of Additional
Information. You can obtain the annual report, which contains more performance
information, at no charge by calling 1-800-414-6927.
For a Share Outstanding Throughout each Period.
<TABLE>
<CAPTION>
INTERNATIONAL FUND
--------------------------------
1/1/98 1/1/97 12/30/96
TO TO TO
12/31/98 12/31/97 12/31/96*+
-------- -------- ----------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD....... $ 9.79 $ 10.12 $10.12
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income ..................... 0.14 0.10 --
Net Realized and Unrealized Loss .......... (0.81) (0.25) --
-------- -------- ------
Total from Investment Operations......... (0.67) (0.15) --
-------- -------- ------
LESS DISTRIBUTIONS FROM:
Net Investment Income...................... (0.11) (0.08) --
In Excess of Net Investment Income......... -- -- ++ --
Capital Gains.............................. (0.04) (0.10) --
-------- -------- ------
Total Distributions...................... (0.15) (0.18) --
-------- -------- ------
Net Asset Value, End of Period............. $ 8.97 $ 9.79 $10.12
======== ======== ======
TOTAL RETURN............................... (6.96)% (1.46)% 0.00%
RATIOS AND SUPPLEMENTAL DATA:+
Net Assets, End of Period (in Thousands)... $280,493 $186,559 $4,296
RATIO OF EXPENSES TO AVERAGE NET
ASSETS (1)................................ 1.00% 1.00% 1.00%**
Ratio of Net Investment Income to Average
Net Assets (1)............................ 1.82% 1.84% 3.50%**
Portfolio Turnover Rate.................... 32% 14% 0.00%
- --------
(1) Effect of voluntary expense limitation during the period:
Ratio of Expenses to Average Net Assets.. 1.10% 1.29% 77.13%**
Ratio of Net Income (Loss) to Average Net
Assets ................................. 1.72% 1.55% (72.63)%**
</TABLE>
* The Fund commenced operations on December 30, 1996.
** Annualized.
+ The per share amounts for the two day period ended December 31, 1996 are
based on average outstanding shares.
++ Amount represents less than $0.01 per share.
21
<PAGE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout each Period.
<TABLE>
<CAPTION>
EMERGING MARKETS FUND
--------------------------------
1/1/98 1/1/97 12/30/96
TO TO TO
12/31/98 12/31/97 12/31/96*+
-------- -------- ----------
<S> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD........ $ 8.50 $ 10.12 $10.12
INCOME FROM INVESTMENT OPERATIONS:
Net Investment Income....................... 0.04 0.05 --
Net Realized and Unrealized Loss............ (2.61) (1.58) --
-------- ------- -------
Total from Investment Operations.......... (2.57) (1.53) --
-------- ------- -------
LESS DISTRIBUTIONS FROM:
Net Investment Income....................... (0.02) (0.07) --
In Excess of Net Investment Income.......... -- ++ -- --
Capital Gains............................... -- (0.02) --
-------- ------- -------
Total Distributions....................... (0.02) (0.09) --
-------- ------- -------
Net Asset Value, End of Period.............. $ 5.91 $ 8.50 $10.12
======== ======= =======
TOTAL RETURN................................ (30.20)% (15.11)% 0.00%
RATIOS AND SUPPLEMENTAL DATA:+
Net Assets, End of Period (in Thousands).... $142,671 $36,720 $5,233
RATIO OF EXPENSES TO AVERAGE NET ASSETS(1).. 1.25% 1.50% 1.50%**
Ratio of Net Investment Income to Average
Net Assets(1).............................. 1.08% 1.12% 2.87%**
Portfolio Turnover Rate..................... 44% 15% 0.00%
- --------
(1) Effect of voluntary expense limitation during the period:
Ratio of Expenses to Average Net Assets... 1.68% 2.18% 65.28%**
Ratio of Net Income (Loss) to Average Net
Assets .................................. 0.65% 0.44% (60.91)%**
</TABLE>
* The Fund commenced operations on December 30, 1996.
** Annualized.
+ The per share amounts for the two day period ended December 31, 1996 are
based on average outstanding shares.
++ Amount represents less than $0.01 per share.
22
<PAGE>
[LOGO OF HANSBERGER APPEARS HERE]
ADVISER
Hansberger Global Investors, Inc.
CUSTODIAN
The Chase Manhattan Bank
INDEPENDENT ACCOUNTANTS
Arthur Andersen LLP
LEGAL COUNSEL
Morgan, Lewis & Bockius LLP
More information about the Funds is available without charge through the
following:
STATEMENT OF ADDITIONAL INFORMATION (SAI)
The SAI dated May 1, 1999, includes more detailed information about Hansberger
Institutional Series. The SAI is on file with the SEC and is incorporated by
reference into this prospectus. This means that the SAI, for legal purposes,
is a part of this prospectus.
ANNUAL AND SEMI-ANNUAL REPORTS
Additional information about each Fund is available in the Fund's annual and
semi-annual reports to shareholders. In the Funds' annual report you will find
a discussion of the market conditions and investment strategies that
significantly affected a Fund's performance during the last fiscal year. You
may obtain either or both of these reports at no cost by calling 1-800-414-
6927.
TO REQUEST INFORMATION OR ASK QUESTIONS:
BY TELEPHONE: Call 1-800-414-
6927
BY MAIL: Write to the Funds at:
Hansberger Institutional Series
c/o Chase Global Funds Services
Company P.O. Box 2973
73 Tremont Street
Boston, MA 02208
FROM THE SEC: You can also
obtain the SAI or the Annual and
Semi-Annual Reports of, as well
as other information about,
Hansberger Institutional Series
from the SEC's website
("http://www.sec.gov").* You may
review and copy documents at the
SEC Public Reference Room in
Washington, DC (for information
call 1-800-SEC-0330). You may
request documents by mail from
the SEC, upon payment of a
duplicating fee, by writing to:
Securities and Exchange
Commission, Public Reference
Section, Washington, DC 20549-
6009.
*The Funds' Investment Company Act registration number is 811-7729.
