Supplement Dated July 13, 1998
To Prospectus Dated September 30, 1997
Orbitex Strategic Natural Resources Fund,
Orbitex Info-Tech & Communications Fund,
Orbitex Growth Fund, Orbitex Asian High Yield Fund and
Orbitex Asian Select Advisors Fund (the "Funds")
The following information supplements the Prospectus dated September
30, 1997.
HOW TO PURCHASE SHARES, HOW TO REDEEM SHARES AND
SHAREHOLDER SERVICES
The "How to Purchase Shares," "How to Redeem Shares" and "Shareholder
Services" sections of the Prospectus are revised to reflect the following change
of address for correspondence with the Trust: P.O. Box 8069, Boston, MA
02266-8069.
PURCHASES THROUGH SELLING GROUP MEMBERS
The following paragraph is added after the paragraph entitled
"Purchases through selling group members" on page 20 of the prospectus:
The Distributor or the Adviser may, at their own expense, provide promotional
incentives to broker-dealers who have sales agreements with the Distributor or
the Advisor in connection with sales of shares of the Funds. In some instances,
these incentives may be made available only to certain broker-dealers or
investment executives who have sold or may sell significant amounts of such
shares.
PURCHASES BY WIRE
The "Purchases by Wire" section on page 20 of the Prospectus is revised
to reflect the following change of ABA Number for State Street Bank and Trust
Company: "ABA No. 011000028."
REDUCED SALES CHARGES
The following sentence is added to the end of the paragraph entitled
"Other Circumstances" on page 22 of the Prospectus:
From May 30, 1998 to July 31, 1998, in connection with purchases with
redemption proceeds from another mutual fund, as described in (9) above, the
Advisor (and not the Fund) may pay the broker/dealer, advisor or other person
who effects the purchase for the investor a fee of up to 0.75% of the purchase
price of the shares of the Fund.
SUB-ADVISORS
All references describing J.P. Morgan Investment Management, Inc. as
sub-advisor of the Asian Select Advisors Fund are deleted as of July 1, 1998.
The Asian High Yield Fund is managed solely by Orbitex Management, Inc. See
especially the "Sub-Advisors" Section on pages 26-27.
<PAGE>
PORTFOLIO MANAGERS
The paragraph describing the portfolio manager of the Info-Tech &
Communications Fund and the Growth Fund on page 28 of the Prospectus is deleted
and the following is substituted:
Orbitex Info-Tech and Communications Fund. Craig W. Ellis is the
portfolio manager for the Info-Tech and Communications Fund. Mr. Ellis joined
Orbitex Management, Inc. in 1998. Formerly he was with Alliance Capital
Management Corporation where from 1997 to 1998 he was a senior vice president
responsible for the firm's investments in the global communications technology
area. Prior to joining Alliance, Mr. Ellis was a managing director at Wheat
First Union where he served as a telecommunications services analyst.
Orbitex Growth Fund. Courtney D. Smith is the portfolio manager for the
Growth Fund. Mr. Smith joined Orbtiex Management, Inc. in 1996. Formerly, he was
President and Chief Investment Officer of Pinnacle Capital Management.
The paragraphs describing the portfolio managers for the Asian High
Yield Fund on page 29 are deleted and the following are substituted:
Asian High Yield Fund. Bashar N. Azzouz is a portfolio manager for the
Asian High Yield Fund. Prior to joining Orbitex Management, Inc. in 1997, Mr.
Azzouz was employed at various banking institutions as Vice President and
Director in the foreign exchange and options area, namely Swiss Bank Corp. and
Societe Generale. From 1987 to 1992, Mr. Azzouz worked as a trader for various
financial organizations including Tudor Investment Corporation, a U.S. hedge
fund management company.
Anya Page is a portfolio manager of the Asian High Yield Fund . Prior
to joining Orbitex Management, Inc. in 1998, Ms. Page worked as a fund manager
for credit Suisse Asset Management Limited since 1993. While at Credit Suisse,
she functioned as Lead Manager for the Asia Pacific Ex-Japan unit Trust and the
Asia Pacific debt Portfolio.
Courtney D. Smith is a portfolio manager for the Asian High Yield Fund.
Mr. Smith joined Orbtiex Management, Inc. in 1996. Formerly, he was President
and Chief Investment Officer of Pinnacle Capital Management.
<PAGE>
FINANCIAL HIGHLIGHTS
The following table of "Financial Highlights" supplements information
contained in the Prospectus dated September 30, 1997, and is from the Funds'
unaudited Financial Statements dated January 31, 1998.
For the period ended January 31, 1998 (Unaudited)
Selected Data based on a share outstanding throughout the period indicated.
<TABLE>
<CAPTION>
Strategic Asian
Natural Info-Tech & Asian Select
Resources Communications Growth High Yield Advisors
Fund (a) Fund (a) Fund (a) Fund (a) Fund (a)
------------- --------------------- ----------- ------------- ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period............ $15.00 $15.00 $15.00 $12.00 $15.00
------------- --------------------- ----------- ------------- ------------
Income (loss) from investment operations:
Net investment income (loss).................... 0.13 (0.06) (0.05) 0.27 (0.06)
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions.................................... (0.50) (0.49) 0.26 (1.51) (0.55)
------------- --------------------- ----------- ------------- ------------
Total income (loss) from investment
operations...................................... (0.37) (0.55) 0.21 (1.24) (0.61)
------------- --------------------- ----------- ------------- ------------
Less dividends from net investment
income.......................................... (0.03) 0.00 0.00 (0.19) 0.00
Less distributions from capital gains........... (0.03) 0.00 0.00 0.00 0.00
------------- --------------------- ----------- ------------- ------------
Total dividends/distributions from net
investment income and net capital
gains........................................... (0.06) 0.00 0.00 (0.19) 0.00
------------- --------------------- ----------- ------------- ------------
Net asset value, end of period.................. $14.57 $14.45 $15.21 $10.57 $14.39
============= ===================== =========== ============= ============
Total Return (b)................................ (2.44)% (3.64)% 1.41% (10.27)% (4.09)%
Ratios and Supplemental Data:
Net assets, end of period....................... $3,725,017 $501,232 $536,566 $2,228,823 $115,411
Ratio of operating expenses to average net
assets (c)(e) .................................. 2.40% 2.40% 1.60% 0.00% 2.50%
Ratio of net investment income (loss) (with
reimbursement) to average net assets
(c)............................................. 2.55% (1.45)% (1.08)% 8.89% (1.50)%
Portfolio turnover rate..................... 330% 149% 212% 223% 0%
Average broker commissions (d)............... $0.06 $0.06 $0.06 N/A $0.01
</TABLE>
(a) The commencement of investment operations was October 23, 1997, for
Strategic Natural Resources Fund, October 22, 1997, for Info-Tech &
Communications Fund and Growth Fund, October 20, 1997, for Asian High Yield
Fund and October 31, 1997, for Asian Select Advisors Fund.
(b) Total returns are historical and assume changes in share price, reinvestment
of dividends and capital gains distributions, and assume no sales charge.
Had the Advisor not absorbed a portion of expenses, total returns would have
been lower. Periods less than one year are not annualized.
(c) Annualized.
(d) A Fund is required to disclose its average commission rate per share for
trades on which commissions are charged.
(e) Ratio of operating expenses to average net assets is after waiver of fees
and reimbursement of certain fees and expenses. Had the fees not been waived
and the expenses reimbursed the ratio of expenses to average net assets
would have been as follows: Strategic Natural Resources Fund, 11.14%;
Info-Tech & Communications Fund 65.05%; Growth Fund 61.77%; Asian High Yield
Fund, 15.31%; and Asian Select Advisors Fund, 285.04%, respectively.
