As filed with the Securities and Exchange Commission on March 27, 1998
Registration Nos. 811-8037, 333-20635
------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER
THE SECURITIES ACT OF 1933 / /
Pre-Effective Amendment No. / /
Post-Effective Amendment No. 1 /X/
and
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940 / /
Amendment No. 3 /X/
(Check appropriate box or boxes)
-------------------------------------------
ORBITEX GROUP OF FUNDS
(Exact Name of Registrant as Specified in Charter)
410 Park Avenue, 18th Floor, New York, New York 10022
(Address of Principal Executive Office)
Registrant's Telephone Number, including Area Code:
(212) 207-4000
----------------------------------
James L. Nelson
410 Park Avenue, 18th Floor,
New York, New York 10022
(Name and Address of Agent for Service)
Copies to:
Joseph J. McBrien, Esq. Leonard B. Mackey, Jr., Esq.
Vice President & Counsel Rogers & Wells
State Street Bank and Trust Company 200 Park Avenue
1776 Heritage Drive, AFB 4 New York, New York 10166
North Quincy, Massachusetts 02171
Approximate Date of Proposed Public Offering: As soon as practicable after this
Registration Statement becomes effective. It is proposed that this filing will
become effective: (check appropriate box)
_____ on __________ pursuant to paragraph (a)(1) of Rule 485
_____ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
_____ 75 days after filing pursuant to paragraph (a)(2) of Rule 485
_____ on __ days after filing pursuant to paragraph (a)(2) of Rule 485
X immediately upon filing pursuant to paragraph (b) of Rule 485
-----
_____ on __________ pursuant to paragraph (b) of Rule 485
<PAGE>
ORBITEX GROUP OF FUNDS
CROSS-REFERENCE SHEET
<TABLE>
<CAPTION>
Form N-1A Item No. Caption in Prospectus
- ------------------ ---------------------
<S> <C> <C>
1. Cover Page Cover Page
2. Synopsis Cover Page; The Funds at a Glance
3. Condensed Financial Information Financial Highlights
4. General Description of Registrant The Funds at a Glance; Investment Objectives
Strategies and Policies; Description of Securities;
Other Investment Policies and Risk Considerations
5. Management of the Fund How the Trust is Managed
6. Capital Stock and Other Securities Organization of the Trust; Dividends, Distributions,
and Taxes; How to Purchase Shares
7. Purchase of Securities How to Purchase Shares; Shareholder Services; How
Each Fund's Net Asset Value is Determined
8. Redemption or Repurchase Shareholder Services; How to
Redeem Shares
9. Pending Legal Proceedings Not Applicable
Caption in Statement of
Form N-1A Item No. Additional Information
- ------------------ ----------------------
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and History General Information and History
13. Investment Objectives and Policies Investment Restrictions; Description
of Securities, Other Investment Policies
and Risk Considerations
14. Management of the Fund Management of the Trust
<PAGE>
Caption in Statement of
Form N-1A Item No. Additional Information
- ------------------ ----------------------
15. Control Persons and Principal Principal Holders of Securities
Holders of Securities
16. Investment Advisory and Other Investment Management and Other
Services Services
17. Brokerage Allocation and Other Brokerage Allocation and Other
Practices Practices
18. Capital Stock and Other Organization of the Trust
Securities
19. Purchase, Redemption and Pricing Purchase and Redemption of Securities
of Securities Being Offered Being Offered; Determination of Net Asset Value
20. Tax Status Taxes
21. Underwriters Distribution of Shares
22. Calculation of Performance Data Performance Information About the
Funds
23. Financial Statements Financial Statements
</TABLE>
<PAGE>
The purpose of this filing is to comply with an undertaking pursuant to Item
32(b) of Form N-1A to file a post-effective amendment containing unaudited
financial statements within four to six months from the effective date of the
Registration Statement with respect to Orbitex Group of Funds. The Prospectus
and the Statement of Additional Information, dated September 30, 1997, are
incorporated into Part A and Part B, respectively, by reference to the
Registration Statement.
PART A
Supplement Dated March 27, 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.
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 April 1, 1998 to May 30, 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.
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.
A-1
<PAGE>
Orbitex Growth Fund. Nicholas E. Moore is the portfolio manager for the Growth
Fund. Mr. Moore joined Orbitex Management, Inc. in 1998. Prior to joining
Orbitex Management, Inc., he worked for the Franklin Templeton Group for 11
years where he was most recently co-manager of the Franklin California Growth
Fund, assistant manager of the Franklin Small Cap Growth Fund and was the
software, networking and Internet analyst for all of the Franklin Funds. Mr.
Moore was previously a securities analyst and senior securities analyst at
Franklin covering numerous industries. His areas of expertise include aerospace,
defense, airlines, automobiles, data services, railroads, shipping and trucking.
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. David Tan and Kimberly Conroy are the portfolio managers
of the Asian High Yield Fund.
Mr. Tan joined J.P. Morgan Investment Management, Inc. in October 1997 as a
fixed-income portfolio manager. Mr. Tan graduated with a MA degree in Economics
from the University of Cambridge, and obtained his MSc in Economics from the
London School of Economics. He has been working in the fixed-income market since
1984 when he joined Morgan Guaranty Trust ("MGT") in Singapore. After leaving
MGT 1986, Mr. Tan worked at Lehman Brothers in Tokyo. Subsequently, he worked in
London as an Economic Advisor in the Debt and Reserves Management Division of
the UK Treasury, providing advice on gilts issuance and foreign exchange
reserves management from 1989 through 1995. Since his return to Singapore in
1995, Mr. Tan has specialized in Asian bonds.
Ms. Conroy is an Emerging Markets Portfolio Manager within the Fixed Income
Group of J.P. Morgan Investment Management, Inc. She moved to Fixed Income in
1997 after spending four years with J.P. Morgan's Global Credit Group where she
established and managed an emerging markets fixed income portfolio. Ms. Conroy
is a graduate of Dartmouth College, and has an MBA with honors, from Columbia
University.
A-2
<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).......................................... 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.
A-3
<PAGE>
PART B
Supplement Dated March 27, 1998
To the Statement of Additional Information 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")
FINANCIAL STATEMENTS
The following financial statements supplement the information contained
in the Statement of Additional Information dated September 30, 1997, and is from
the Funds' unaudited Financial Statements dated January 31, 1998. The statements
included are: (1) the Schedules of Investments for the Orbitex Group of Funds as
of January 31, 1998, (2) the Statements of Assets and Liabilities as of January
31, 1998, (3) the Statements of Operations as of January 31, 1998, (4) the
Statements of Changes in Net Assets as of January 31, 1998, (5) the Financial
Highlights as of January 31, 1998 and (6) the Notes to the Financial Statements.
ORBITEX GROUP OF FUNDS
STRATEGIC NATURAL RESOURCES FUND
SCHEDULE OF INVESTMENTS
January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Market
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS - 94.05%
Aluminum - 1.87%
Alumax, Inc. (a) ............................... 2,000 $ 69,625
--------
Chemicals - 7.03%
Dow Chemical Co. ............................... 700 63,000
Du Pont (E.I.) de Nemours and Co. .............. 1,200 67,950
FMC Corp. (a) .................................. 1,000 67,250
Lyondell Petrochemical Co....................... 2,500 63,750
--------
261,950
--------
Domestic Oil - 4.28%
Amerada Hess Corp. ............................. 1,500 82,031
Pennzoil Co. ................................... 1,200 77,550
--------
159,581
--------
Electric Utilities - 8.29%
Cinergy Corp. .................................. 5,000 173,425
St. Joseph Light & Power Co. ................... 7,500 135,469
--------
308,894
--------
Gas & Pipeline Utilities - 4.09%
Enron Corp. .................................... 1,000 41,438
Providence Energy Corp. ........................ 5,000 110,837
--------
152,275
--------
B-1
<PAGE>
ORBITEX GROUP OF FUNDS
STRATEGIC NATURAL RESOURCES FUND
SCHEDULE OF INVESTMENTS (continued)
January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Market
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS - 94.05%
International Oil - 5.84%
Exxon Corp. .................................... 1,200 $ 71,175
Mobil Corp. .................................... 1,000 68,125
Texaco, Inc. ................................... 1,500 78,094
--------
217,394
--------
Mining - 6.92%
Barrick Gold Corp. ............................. 4,000 77,500
Compania De Minas Buenaventura SA .............. 3,500 41,562
Getchell Gold Corp. (a) ........................ 2,000 51,000
Newmont Mining Corp. ........................... 2,000 57,000
TVX Gold, Inc. (a) ............................. 10,000 30,625
--------
257,687
--------
Natural Gas- 3.60%
Canadian 88 Energy Corp. (a) ................... 20,000 74,189
Renaissance Energy Ltd. (a) .................... 3,000 59,969
--------
134,158
--------
Oil & Gas Drilling - 3.22%
Marine Drilling Co., Inc. (a) .................. 4,000 72,000
Noble Drilling Corp. (a) ....................... 1,800 48,150
--------
120,150
--------
Oil & Gas Exploration & Production - 22.82%
Anadarko Petroleum Corp. ....................... 1,500 88,500
Anderson Exploration Ltd. (a) .................. 5,000 51,176
Coho Energy, Inc. (a) .......................... 8,000 65,500
Edge Petroleum Corp. (a) ....................... 6,000 65,625
EEX Corp. (a) .................................. 9,000 75,938
Forcenergy, Inc. (a) ........................... 2,500 55,781
Mallon Resources Corp. (a) ..................... 5,000 39,375
Noble Affiliates, Inc. ......................... 2,000 72,750
Oryx Energy Co. (a) ............................ 2,500 60,000
Pacalta Resources Ltd. (a) ..................... 3,800 26,495
Pogo Producing Co. ............................. 1,500 42,563
Ranger Oil Ltd. ................................ 10,000 59,375
Santa Fe Energy Resources, Inc. ................ 6,000 63,000
Triton Energy Ltd. (a) ......................... 3,000 83,812
--------
849,890
--------
Oil Field Machine & Equipment Manufacturing - 4.87%
Cooper Cameron Corp. (a) ....................... 500 25,719
Global Industries, Inc. (a) .................... 5,000 73,750
Varco International, Inc. (a) .................. 4,000 82,000
--------
181,469
--------
B-2
<PAGE>
STRATEGIC NATURAL RESOURCES FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Shares or Market
Principal Amount Value
- --------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Oil Field Service - 7.25%
Baker Hughes, Inc. ............................. 1,500 $ 57,844
Schlumberger Ltd. .............................. 1,000 73,687
Shaw Group, Inc. (a) ........................... 2,000 43,875
Stolt Comex Seaway, SA (a) ..................... 1,500 32,250
Western Atlas, Inc. ............................ 1,000 62,313
----------
269,969
----------
Paper & Related Products - 8.19%
Champion International Corp. ................... 1,500 76,781
Louisiana-Pacific Corp. ........................ 3,000 60,188
Union Camp Corp. ............................... 1,200 68,625
Weyerhaeuser Co. ............................... 2,000 99,625
----------
305,219
----------
Petroleum Services - 1.49%
Veritas DGC, Inc. (a) .......................... 1,500 55,406
----------
Pollution Control - 1.48%
USA Waste Services, Inc. (a) ................... 1,500 55,125
----------
Steel - 2.81%
AK Steel Holding Corp. ......................... 2,500 44,687
Steel Dynamics, Inc. (a) ....................... 3,000 60,000
----------
TOTAL COMMON STOCKS - (Cost $3,460,139) $3,503,479
----------
SHORT TERM INVESTMENT - 19.27%
United States Treasury Bill, 4.51%,
2/5/1998 (b) ................................... $718,000 $ 717,641
----------
TOTAL SHORT TERM INVESTMENT - (Cost $717,641) $ 717,641
----------
Total Investments (Cost $4,177,780) - 113.32% 4,221,120
Other Assets Less Liabilities - (13.32)% (496,103)
----------
Net Assets - 100.00% $3,725,017
==========
(a) Non-Income producing security.
(b) Rate represents annualized yield at date of purchase.
B-3
<PAGE>
INFO-TECH & COMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS
January 31, 1998 (Unaudited)
- -------------------------------------------------------------------------
Market
Shares Value
- -------------------------------------------------------------------------
COMMON STOCKS - 95.26%
Communication Services - 7.03%
American Communications Services (a) ... 900 $ 14,063
Metronet Communications Corp. (a) ...... 1,000 21,156
-----------
35,219
-----------
Computers & Business Equipment - 3.77%
Cisco Systems, Inc. (a) ................ 300 18,919
-----------
Electronics - 8.83%
Advanced Fibre Communications (a) ...... 700 20,825
Lexmark International Group, Inc. (a) .. 600 23,438
-----------
44,263
-----------
Networking - 3.80%
Bay Networks, Inc. (a) ................. 700 19,031
-----------
Telecommunications Equipment - 19.67%
Lucent Technologies, Inc. .............. 200 17,700
Nokia Corp. ............................ 200 15,200
Northern Telecom Ltd. .................. 400 18,050
Pairgain Technologies, Inc. (a) ........ 1,200 22,050
Tellabs, Inc. (a) ...................... 500 25,594
-----------
98,594
-----------
Telecommunications Services - 11.53%
At Home Corp. (a) ...................... 900 20,812
BCE, Inc. .............................. 500 15,625
Tel-Save Holdings, Inc. (a) ............ 900 21,375
-----------
57,812
-----------
Telephone - 36.71%
AT&T Corp. ............................. 400 25,050
Bell Atlantic Corp. .................... 300 27,769
NEXTLINK Communications, Inc. (a) ...... 800 19,900
Powertel, Inc. (a) ..................... 1,000 20,500
SBC Communications, Inc. ............... 300 23,325
Sprint Corp. ........................... 400 23,750
Telecomunicacoes Brasileiras ........... 200 22,200
WorldCom, Inc. ......................... 600 21,487
-----------
183,981
-----------
Unit Investment Trust - 3.92%
SPDR Trust Series 1 .................... 200 19,656
-----------
TOTAL COMMON STOCKS - (Cost $449,812) $ 477,475
-----------
B-4
<PAGE>
INFO-TECH & COMMUNICATIONS FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Principal Market
Amount Value
- --------------------------------------------------------------------------------
SHORT TERM INVESTMENT - 41.28%
United States Treasury Bill, 4.51%, 2/5/1998 (b) ... 207,000 $ 206,897
---------
TOTAL SHORT TERM INVESTMENT - (Cost $206,897) $ 206,897
---------
Total Investments (Cost $656,709) - 136.54% 684,372
Other Assets Less Liabilities - (36.54)% (183,140)
---------
Net Assets - 100.00% $ 501,232
=========
(a) Non-Income producing security.
(b) Rate represents annualized yield at date of purchase.
B-5
<PAGE>
GROWTH FUND
SCHEDULE OF INVESTMENTS
January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Market
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS - 86.81%
Air Travel - 2.35%
AMR Corp. (a) .......................... 100 $ 12,625
--------
Banks - 13.44%
AmSouth Bancorporation ................. 300 16,200
Comerica, Inc. ......................... 100 9,438
FirstFed Financial Corp. (a) ........... 500 17,562
Fleet Financial Group, Inc. ............ 200 14,325
Norwest Corp. .......................... 100 3,650
U.S. Bancorp ........................... 100 10,950
--------
72,125
--------
Building Construction - 3.51%
Centex Corp. ........................... 300 18,825
--------
Chemicals - 3.28%
Goodrich (B.F.) Co. .................... 420 17,614
--------
Computers & Business Equipment - 7.20%
Cisco Systems, Inc. (a) ................ 300 18,919
International Business Machines ........ 200 19,737
--------
38,656
--------
Containers & Glass - 3.34%
ZERO Corp. ............................. 700 17,938
--------
Drugs & Health Care - 6.38%
Cellegy Pharmaceuticals, Inc. (a) ...... 2,600 18,525
Healthsouth Corp. (a) .................. 700 15,706
--------
34,231
--------
Electronics - 4.37%
Lexmark International Group, Inc. (a) .. 600 23,438
--------
Financial Services - 3.69%
Travelers Group, Inc. .................. 400 19,800
--------
Food & Beverages - 4.93%
International Home Foods, Inc. (a) ..... 1,000 26,438
--------
Insurance - 1.67%
MedPartners, Inc. (a) .................. 900 8,944
--------
Lease Rental Obligations - 4.45%
United Rentals, Inc. (a) ............... 1,000 23,875
--------
Machinery - 3.73%
Tokheim Corp. (a) ...................... 1,000 20,000
--------
B-6
<PAGE>
GROWTH FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Market
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS - (Continued)
Unit Investment Trust - 3.66%
SPDR Trust Series 1 ..................... 200 $ 19,656
---------
Retail - 8.78%
Longs Drug Stores Corp. ................. 600 17,362
Ross Stores, Inc. ....................... 200 6,500
Viking Office Products, Inc. (a) ........ 1,000 23,250
---------
47,112
---------
Software - 4.46%
Computer Associate International, Inc. .. 450 23,934
---------
Telephone - 7.57%
AT&T Corp. .............................. 400 25,050
SBC Communications, Inc. ................ 200 15,550
---------
40,600
---------
TOTAL COMMON STOCKS - (Cost $461,849) $ 465,811
---------
Total Investments (Cost $461,849) - 86.81% 465,811
Other Assets Less Liabilities - 13.19% 70,755
---------
Net Assets - 100.00% $ 536,566
=========
(a) Non-Income producing security.
B-7
<PAGE>
ASIAN HIGH YIELD FUND
SCHEDULE OF INVESTMENTS
January 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
Principal Market
Amount Value
- -----------------------------------------------------------------------------------------------------------
<S> <C> <C>
FOREIGN BONDS AND NOTES - 80.30%
China - 3.82%
Finance - 1.87%
Guangdong International Trust & Investment Corp., 8.750% due
10/24/2016 (a)..................................................... 50,000 $ 41,687
---------
Municipal - 1.95%
Zhuhai Highway Co., Ltd., 11.500% due 7/1/2008 (a) ................... 50,000 43,500
---------
India - 9.59%
Energy - 7.57%
Tata Electric Co., 7.875% due 8/19/2007 (a)........................... 200,000 168,700
---------
Industrials - 2.02%
Reliance Industries, Ltd., 8.125% due 9/27/2005 (a)................... 50,000 45,000
---------
Indonesia - 3.92%
Food, Beverage & Tobacco - 1.30%
Sampoerna International Financial Co., 8.375% due 6/15/2006 (a)....... 50,000 29,000
---------
Retail - 2.62%
Matahari International Financial Co., 11.250% due 3/15/2001 (a) ...... 90,000 58,500
---------
Korea - 23.55%
Banks - 4.25%
Korea Development Bank, 7.000% due 7/15/1999 ......................... 100,000 94,750
---------
Energy - 3.41%
Korea Electric Power Corp., 6.375% due 12/1/2003 ..................... 90,000 76,050
---------
Industrials - 8.00%
Pohang Iron & Steel, Ltd., 7.500% due 8/1/2002 ....................... 200,000 178,250
---------
Telephone - 7.89%
SK Telecom Co., Ltd., 7.750% due 4/29/2004 ........................... 200,000 175,750
---------
Malaysia - 4.14%
Industrials - 4.14%
Petroliam Nasional Berhad, 7.125% due 8/15/2005 (a)................... 100,000 92,200
---------
Philippines - 16.98%
Energy - 4.20%
Ce Casecnan Water & Energy, Inc., Senior Note, 11.450% due
11/15/2005 ........................................................ 100,000 93,744
---------
Government - 3.72%
Bangko Sentral Ng Philipinas, 8.600% due 6/15/2027 ................... 100,000 83,000
---------
Telephone - 9.06%
Philippine Long Distance Telephone, 10.625% due 6/2/2004 ............. 200,000 202,000
---------
B-8
<PAGE>
ASIAN HIGH YIELD FUND
SCHEDULE OF INVESTMENTS (CONTINUED)
January 31, 1998 (Unaudited)
- ---------------------------------------------------------------------------------------------------------
Principal Market
Amount Value
- ---------------------------------------------------------------------------------------------------------
FOREIGN BONDS AND NOTES - (Continued)
Thailand - 7.22%
Banks - 7.22%
Bangkok Bank Public Co., Ltd., 7.250% due 9/15/2005 (a) .............. $200,000 $ 160,880
----------
Turkey - 8.91%
Government - 8.91%
Republic of Turkey, 10.000% due 9/19/2007 ............................ 100,000 101,250
Sultan, Ltd., Floating Rate Note, 8.687% due 6/11/1999 (b) ........... 100,000 97,300
----------
198,550
----------
United Kingdom - 2.17%
Corporate - 2.17%
Cheung Kong Finance, 5.500% due 9/30/1998 ............................ 50,000 48,313
----------
TOTAL FOREIGN BONDS AND NOTES - (Cost $1,918,807) $1,789,874
----------
SHORT TERM INVESTMENT - 22.96%
United States Treasury Bill, 4.87%, 3/19/1998 (c) .................... 515,000 511,818
----------
TOTAL SHORT TERM INVESTMENT - (Cost $511,818) $ 511,818
----------
Total Investments (Cost $2,430,625) - 103.26% 2,301,692
Other Assets Less Liabilities - (3.26)% (72,869)
----------
Net Assets - 100.00% $2,228,823
==========
</TABLE>
(a) Pursuant to Rule 144A of the Securities Act of 1933, these securities may be
resold in transactions exempt from registration, normally to qualified
institutional buyers. At January 31, 1998, these securities amounted to
$639,467 or 28.69% of the Fund's net assets.
(b) Floating rate note. Rate noted represents rate at January 31, 1998.
(c) Rate represents annualized yield at date of purchase.
B-9
<PAGE>
ORBITEX GROUP OF FUNDS
ASIAN SELECT ADVISORS FUND
SCHEDULE OF INVESTMENTS
January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
Market
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS - 25.22%
Hong Kong - 20.27%
Conglomerates - 5.09%
Hutchison Whampoa .............................. 1,000 $ 5,881
---------
Diversified - 4.94%
Citic Pacific, Ltd. ............................ 1,000 2,869
Wharf Holdings ................................. 2,000 2,831
---------
5,700
---------
Real Estate - 4.18%
New World Development Co., Ltd. ................ 2,000 4,821
---------
Telephone - 6.06%
China Telecom, Ltd. (a) ........................ 2,000 2,830
Hong Kong Telecomm ............................. 2,000 4,162
---------
6,992
---------
Singapore - 4.95%
Building Construction - 1.31%
Keppel Land, Ltd. .............................. 2,000 1,516
---------
Conglomerates - 3.64%
Singapore Technologies Engineering, Ltd. (a) ... 5,137 4,195
---------
TOTAL COMMON STOCKS - (Cost $33,609) $ 29,105
---------
Total Investments (Cost $33,609) - 25.22% 29,105
Other Assets Less Liabilities - 74.78% 86,306
---------
Net Assets - 100.00% $ 115,411
=========
(a) Non-Income producing security.
B-10
<PAGE>
ORBITEX GROUP OF FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
January 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Strategic
Natural Info-Tech & Asian High Asian
Resources Communications Growth Yield Select Advisors
Fund Fund Fund Fund Fund
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at market
(Cost $4,177,780, $656,709, $461,849,
$2,430,625, and $33,609, respectively).... $ 4,221,120 $ 684,372 $ 465,811 $ 2,301,692 $ 29,105
Cash, including foreign currency............ 70,286 676 69,893 2,171 84,096
Receivable for securities sold.............. 202,111 0 0 0 0
Interest receivable......................... 0 0 0 49,251 0
Dividends receivable........................ 19,458 573 298 0 0
Receivable for fund shares sold............. 4,712 0 0 0 0
Receivable from investment advisor.......... 32,083 39,723 42,795 45,858 38,610
Prepaid expenses............................ 7,814 7,778 7,110 7,037 7,455
Deferred organization expenses.............. 13,334 13,330 13,330 13,321 13,370
------------ ----------- ------------ ----------- ------------
TOTAL ASSETS.......................... 4,570,918 746,452 599,237 2,419,330 172,636
LIABILITIES
Payable for securities purchased............ 773,116 184,157 0 127,097 0
Payable to investment advisor............... 29,533 29,533 28,865 28,865 28,865
Accounts payable and other
accrued expenses.......................... 43,252 31,530 33,806 34,545 28,360
------------ ----------- ------------ ----------- ------------
TOTAL LIABILITIES..................... 845,901 245,220 62,671 190,507 57,225
------------ ----------- ------------ ----------- ------------
NET ASSETS............................ $ 3,725,017 $ 501,232 $ 536,566 $ 2,228,823 $ 115,411
============ =========== ============ =========== ============
NET ASSETS CONSIST OF:
Paid-in capital ($.01 par value),
unlimited number of shares
authorized................................ 4,092,703 520,174 529,394 2,478,726 120,324
Undistributed net investment income
(loss).................................... 16,919 (1,954) (1,600) 16,627 (456)
Accumulated net realized gain (loss)
on investments............................ (426,402) (44,651) 4,810 (137,597) 47
Net unrealized appreciation
(depreciation) on investments and foreign
currency related transactions............. 41,797 27,663 3,962 (128,933) (4,504)
------------ ----------- ------------ ----------- ------------
NET ASSETS............................ $ 3,725,017 $ 501,232 $ 536,566 $ 2,228,823 $ 115,411
============ =========== ============ =========== ============
NET ASSET VALUE PER SHARE
Net Asset Value per share
(based on shares of beneficial
interest outstanding)..................... $ 14.57 $ 14.45 $ 15.21 $ 10.57 $ 14.39
------------ ----------- ------------ ----------- ------------
Offering Price Per Share
($14.57/.9425, $14.45/.9425,
$15.21/.9425, $10.57/.9525,
$14.39/.9425 respectively)................ $ 15.46 $ 15.33 $ 16.14 $ 11.10 $ 15.27
------------ ----------- ------------ ----------- ------------
Total shares outstanding at end
of period................................. 255,634 34,679 35,274 210,882 8,022
</TABLE>
B-11
<PAGE>
ORBITEX GROUP OF FUNDS
STATEMENTS OF OPERATIONS
For the Period Ended January 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Strategic
Natural Info-Tech & Asian High Asian
Resources Communications Growth Yield Select Advisors
Fund* Fund* Fund* Fund* Fund*
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest Income............................. $ 18,084 $ 569 $ 401 $ 54,242 $ 79
Dividend income............................. 28,520 713 379 0 227
Foreign taxes withheld...................... 0 0 0 (179) 0
------------ ----------- ------------ ----------- ------------
Total Investment Income..................... 46,604 1,282 780 54,063 306
EXPENSES
Investment advisor fee...................... 11,788 1,685 1,116 7,723 457
Administration fees......................... 23,257 23,364 23,364 23,575 22,355
Professional fees........................... 12,758 12,817 12,817 12,932 12,264
Custodian fees.............................. 23,380 20,769 23,488 19,311 25,466
Trustees' fees.............................. 1,063 1,068 1,068 1,078 1,022
Transfer agent fees......................... 10,366 10,414 10,413 10,508 9,964
Distribution fees........................... 3,772 539 595 1,854 122
Amortization of organization expense........ 931 935 935 944 895
Miscellaneous expenses...................... 17,908 16,115 17,989 15,127 14,346
------------ ----------- ------------ ----------- ------------
Total operating expenses before
waivers and reimbursements................ 105,223 87,706 91,785 93,052 86,891
Less: Expenses waived
and reimbursed............................ (82,685) (84,470) (89,405) (93,052) (86,129)
------------ ----------- ------------ ----------- ------------
Net Expenses................................ 22,538 3,236 2,380 0 762
------------ ----------- ------------ ----------- ------------
Net Investment Income (Loss)................ 24,066 (1,954) (1,600) 54,063 (456)
------------ ----------- ------------ ----------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on:
Investments............................... (419,429) (44,651) 4,810 (137,597) 0
Foreign currency related transactions..... (57) 0 0 0 47
------------ ----------- ------------ ----------- ------------
(419,486) (44,651) 4,810 (137,597) 47
------------ ----------- ------------ ----------- ------------
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency related transactions............. 41,797 27,663 3,962 (128,933) (4,504)
------------ ----------- ------------ ----------- ------------
Net realized and unrealized gain (loss)
on investments and foreign currency
related transactions...................... (377,689) (16,988) 8,772 (266,530) (4,457)
------------ ----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations................... $ (353,623) $ (18,942) $ 7,172 $ (212,467) $ (4,913)
============ =========== ============ =========== ============
</TABLE>
* The commencement of investment operations was October 23, 1997, for the
Strategic Natural Resources Fund, October 22, 1997, for the Info-Tech &
Communications Fund and the Growth Fund, October 20, 1997, for the Asian High
Yield Fund, and October 31, 1997 for the Asian Select Advisors Fund.
B-12
<PAGE>
ORBITEX GROUP OF FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
For the Period Ended January 31, 1998 (Unaudited)
<TABLE>
<CAPTION>
Strategic
Natural Info-Tech & Asian High Asian
Resources Communications Growth Yield Select Advisors
Fund* Fund* Fund* Fund* Fund*
----- ----- ----- ----- -----
<S> <C> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From Operations:
Net investment income (loss)................... $ 24,066 $ (1,954) $ (1,600) $ 54,063 $ (456)
Net realized gain (loss) on investments
and foreign currency
related transactions........................ (419,486) (44,651) 4,810 (137,597) 47
Net change in unrealized appreciation
(depreciation) on investments and foreign
currency related transactions............... 41,797 27,663 3,962 (128,933) (4,504)
------------ ----------- ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from operations................... (353,623) (18,942) 7,172 (212,467) (4,913)
------------ ----------- ------------ ----------- ------------
Distributions to Shareholders:
From net investment income..................... (7,147) 0 0 (37,436) 0
From capital gains............................. (6,916) 0 0 0 0
------------ ----------- ------------ ----------- ------------
Total distributions from net investment income
and net capital gains....................... (14,063) 0 0 (37,436) 0
------------ ----------- ------------ ----------- ------------
From Fund Share Transactions:
Proceeds from fund shares sold................. 9,194,988 500,174 509,394 4,347,959 100,324
Net asset value of shares issued to shareholders
in reinvestment of distributions............ 10,136 0 0 12,910 0
Cost of shares redeemed........................ (5,132,421) 0 0 (1,902,143) 0
------------ ----------- ------------ ----------- ------------
Net increase in net assets from Fund
share transactions.......................... 4,072,703 500,174 509,394 2,458,726 100,324
------------ ----------- ------------ ----------- ------------
Total increase in net assets................... 3,705,017 481,232 516,566 2,208,823 95,411
------------ ----------- ------------ ----------- ------------
Net Assets:
Beginning of period (Note 7)................... 20,000 20,000 20,000 20,000 20,000
------------ ----------- ------------ ----------- ------------
End of period.................................. $ 3,725,017 $ 501,232 $ 536,566 $ 2,228,823 $ 115,411
============ =========== ============ =========== ============
Number of Fund Shares:
Shares outstanding at beginning of period...... 1,333 1,333 1,333 1,667 1,333
------------ ----------- ------------ ----------- ------------
Shares sold.................................... 605,440 33,346 33,941 376,418 6,689
Shares issued to shareholders in reinvestment
of distributions............................ 712 0 0 1,263 0
Shares redeemed................................ (351,851) 0 0 (168,466) 0
------------ ----------- ------------ ----------- ------------
Net increase in shares outstanding............. 254,301 33,346 33,941 209,215 6,689
------------ ----------- ------------ ----------- ------------
Total shares outstanding at end of period...... 255,634 34,679 35,274 210,882 8,022
============ =========== ============ =========== ============
</TABLE>
* The commencement of investment operations was October 23, 1997, for the
Strategic Natural Resources Fund, October 22, 1997, for the Info-Tech &
Communications Fund and the Growth Fund, October 20, 1997, for the Asian High
Yield Fund, and October 31, 1997 for the Asian Select Advisors Fund.
B-13
<PAGE>
ORBITEX GROUP OF FUNDS
FINANCIAL HIGHLIGHTS
For the period ended January 31, 1998 (Unaudited)
Selected data based on a shares 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) 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.
B-14
<PAGE>
Orbitex Group of Funds
Notes to Financial Statements
January 31, 1998 (Unaudited)
1. Organization
Orbitex Group of Funds (the "Trust") was incorporated in Delaware in December
1996 and is registered under the Investment Company Act of 1940 (the "1940
Act"), as amended, as an open-end management investment company. The Trust is
comprised of five portfolios (collectively the "Funds" and individually the
"Fund") as follows: Orbitex Strategic Natural Resources Fund, Orbitex Info-Tech
& Communications Fund, Orbitex Growth Fund, Orbitex Asian High Yield Fund and
Orbitex Asian Select Advisors Fund. Each Fund operates as a diversified
investment company except the Asian High Yield Fund which operates as a
non-diversified investment company. All Funds are offered at net asset value
plus a maximum sales load of 5.75%, except for the Asian High Yield Fund, which
is offered at net asset value plus a maximum sales load of 4.75%.
2. Summary of Significant Accounting Policies
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results may differ from those estimates. The
following summarizes the significant accounting policies of the Trust:
Security Valuation and Transactions
Equity securities are valued at the last sale price on the exchange or in the
over-the-counter market in which such securities are primarily traded, as of the
close of business on the day the securities are being valued, or lacking any
sales, at the last available bid price. Long-term debt obligations are valued at
the mean of representative quoted bid and asked prices for such securities.
Short term debt investments with less than 60 days to maturity are valued at
amortized cost or original cost plus accrued interest, each of which
approximates fair value.
Foreign securities are valued on the basis of market quotations from the primary
market in which they are traded, and are translated from the local currency into
U.S. dollars using current exchange rates.
If market quotations are not readily available or if the values have been
materially affected by events occurring after the closing of a foreign market,
securities and other assets are valued as determined in good faith by or under
the direction of the Board of Trustees of the Trust.
Investment security transactions are accounted for as of the trade date. Cost is
determined and gains and losses are based upon the specific identification
method for both financial statement and federal income tax purposes.
Foreign Currency Translation
The accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are translated into U.S. dollars at the prevailing rates of exchange at period
end. Income receipts and expense payments are translated into U.S. dollars at
the prevailing exchange rate on the respective dates of the transactions.
Purchases and sales of securities are translated into U.S. dollars at the
contractual currency rate established at the time of the trade.
B-15
<PAGE>
Orbitex Group of Funds
Notes to Financial Statements (continued)
January 31, 1998 (Unaudited)
2. Summary of Significant Accounting Policies (continued)
Foreign Currency Translation (continued)
Net realized gains and losses on foreign currency transactions represent net
gains and losses from currency gains and losses realized between the trade and
settlement dates on securities transactions. The effects of changes in foreign
currency exchange rates on investments in securities are included with the net
realized and unrealized gain or loss on investment securities.
Income Taxes
It is each Fund's policy to comply with all sections of the Internal Revenue
Code applicable to regulated investment companies and to distribute all of its
taxable income and gains to its shareholders and therefore, no provision for
federal income tax has been made. Each Fund is treated as a separate taxpayer
for federal income tax purposes.
Investment Income
Corporate actions (including cash dividends) are recorded net of nonreclaimable
tax withholdings on the ex-dividend date, except for certain foreign securities
for which corporate actions are recorded as soon after ex-dividend date as such
information is available. Dividend and interest income are recorded on the
accrual basis. Original issue discount and premium are accreted and amortized
respectively, on a yield to maturity basis. Market discount is recognized at
disposition using the straight line method.
Expenses
Expenses of the Trust which are directly identifiable to a specific Fund are
allocated to that Fund. Expenses which are not readily identifiable to a
specific Fund are allocated in such a manner as deemed equitable, taking into
consideration the nature and type of expense and the relative sizes of the
Funds.
Distributions to Shareholders
Income dividends will normally be declared and distributed quarterly for the
Asian High Yield Fund and annually for each of the other Funds. All Funds
declare and pay net realized capital gain distributions annually. The character
of income and gains to be distributed are determined in accordance with income
tax regulations which may differ from generally accepted accounting principles.
Deferred Organizational Costs
Estimated organizational expenses will be deferred and amortized over a period
of five years commencing with operations. Orbitex Management, Inc. (the
"Advisor") has agreed with respect to each of the Funds that, if any of the
initial shares of a Fund are redeemed during such amortization period by the
holder thereof, the redemption proceeds will be reduced for any unamortized
organization expenses in the same ratio as the number of shares redeemed bears
to the number of initial shares held at the time of redemption. The Advisor has
paid all of the organizational costs of the Funds and will be reimbursed by the
Funds.
B-16
<PAGE>
Orbitex Group of Funds
Notes to Financial Statements (continued)
January 31, 1998 (Unaudited)
2. Summary of Significant Accounting Policies (continued)
Repurchase Agreements
Each Fund may enter into repurchase agreements. In a repurchase agreement, a
Fund buys a security and the seller simultaneously agrees to repurchase the
security on a specified future date at an agreed-upon price. The repurchase
price reflects an agreed-upon interest rate during the time the Fund's money is
invested in the security. Because the security constitutes collateral for the
repurchase obligation, a repurchase agreement can be considered a collateralized
loan. The Fund's risk is the ability of the seller to pay the agreed-upon price
on the delivery date. If the seller is unable to make a timely repurchase, the
Fund could experience delays in the receipt of expected proceeds, suffer a loss
in principal or current interest, or incur costs in liquidating the collateral.
The Board of Trustees of the Trust has established criteria to evaluate the
creditworthiness of parties with which the Funds may enter into repurchase
agreements.
Other
There are certain additional risks involved when investing in foreign securities
that are not inherent in domestic securities. These risks may involve foreign
currency exchange rate fluctuations, adverse political and economic developments
and the imposition of unfavorable foreign governmental laws and restrictions.
The Orbitex Strategic Natural Resources Fund and the Orbitex Info-Tech &
Communications Fund may focus their investments in certain industries,
subjecting them to greater risk than funds that are more diversified.
3. Fees and Compensation Paid to Affiliates and Other Parties
Advisory Fees
Each Fund has entered into an Investment Advisory Agreement with the Advisor. As
compensation for the services rendered, facilities furnished, and expenses borne
by the Advisor, the Funds will pay the Advisor a fee accrued daily and paid
monthly, at the annualized rate of 1.25% for the Strategic Natural Resources
Fund, 1.25% for the Info-Tech & Communications Fund, 0.75% for the Growth Fund,
1.25% for the Asian High Yield Fund, and 1.50% for the Asian Select Advisors
Fund. The Advisory Agreement also provides that the Advisor may retain
Sub-Advisers at the Advisor's own cost and expense, for the purpose of managing
the investment of the assets of one or more Funds of the Trust.
The Advisor has agreed to waive or limit its fees and to pay certain operating
expenses to the extent necessary to limit total fund operating expenses to
2.40%, 2.40%, 1.60%, 2.00%, and 2.50% for the Strategic Natural Resources Fund,
Info-Tech & Communications Fund, Growth Fund, Asian High Yield Fund and Asian
Select Advisors Fund, respectively, subject to possible reimbursement by the
Funds in future years if such reimbursement can be achieved within the foregoing
expense limits. The Advisor has agreed to waive or limit its fees and to pay all
operating expenses of the Asian High Yield Fund for the first one hundred fifty
days of Fund operations. The waivers for the period ended January 31, 1998
amounted to $11,788, $1,685, $1,116, $7,723 and $457 for Orbitex Strategic
Natural Resources Fund, Orbitex Info-Tech & Communications Fund, Orbitex Growth
Fund, Orbitex Asian High Yield Fund and Orbitex Asian Select Advisors Fund,
respectively. The reimbursements for the period ended January 31, 1998 amounted
to $32,083, $39,723, $42,795, $45,858 and $38,610 for Orbitex Strategic Natural
Resources Fund, Orbitex Info-Tech & Communications Fund, Orbitex Growth Fund,
Orbitex Asian High Yield Fund and Orbitex Asian Select Advisors Fund,
respectively.
B-17
<PAGE>
Orbitex Group of Funds
Notes to Financial Statements (continued)
January 31, 1998 (Unaudited)
3. Fees and Compensation Paid to Affiliates and Other Parties (continued)
Sub-Advisory Fees
Pursuant to separate Sub-Advisory Agreements among each Sub-Advisor, the Advisor
and the Trust, each Sub-Advisor is responsible for the selection and management
of portfolio investments for a Fund, or for its segment of a particular Fund, in
accordance with the Fund's investment objective and policies and under the
supervision of the Advisor.
On a monthly basis, each Sub-Advisor receives a sub-advisory fee, paid by the
Advisor, based on the applicable Fund's average daily net assets at the
annualized rate of: .70% of the average daily net assets of the portion of the
Asian Select Advisors Fund advised by Bankers Trust Company; and .50% of the
average daily net assets of the portion of the Asian Select Advisors Fund
advised by Asia Strategic Investment Management Limited; .50% on the first $50
million of average daily net assets of the Asian High Yield Fund, .45% on next
$50 million of net assets, and .40% of net assets over $100 million for J.P.
Morgan Investment Management Inc.
Administration Fees
State Street Bank and Trust Company ("State Street") serves as the Administrator
of the Trust. For providing administrative services to the Funds, State Street
will receive from each Fund, a monthly fee at an annual rate of .10% of the
first $100 million of each Fund's average daily net assets, plus .08% of the
next $100 million of each Fund's average daily net assets, plus .06% of each
Fund's average daily net assets in excess of $200 million, subject to certain
minimum requirements. The waivers for the period ended January 31, 1998 amounted
to $22,319, $23,229, $23,215, $22,966 and $22,321 for Orbitex Strategic Natural
Resources Fund, Orbitex Info-Tech & Communications Fund, Orbitex Growth Fund,
Orbitex Asian High Yield Fund and Orbitex Asian Select Advisors Fund,
respectively.
Custodian Fees
State Street serves as the Trust's custodian, including holding all portfolio
securities and cash assets of the Trust and providing accounting services
including daily variation of the shares of each Fund, for which it receives an
annual accounting fee. The waivers for the period ended January 31, 1998
amounted to $16,495, $19,833, $22,279, $16,505 and $24,741 for Orbitex Strategic
Natural Resources Fund, Orbitex Info-Tech & Communications Fund, Orbitex Growth
Fund, Orbitex Asian High Yield Fund and Orbitex Asian Select Advisors Fund,
respectively.
Distributor
Funds Distributor, Inc. (the "Distributor") serves as the distributor of the
shares of each Fund pursuant to a Distribution Plan and Agreement, pursuant to
Rule 12b-1 under the 1940 Act, between the Distributor and the Trust. The Rule
12b-1 Plan and Agreement provides for payment of a fee to the Distributor at an
annualized rate of 0.30% of the average daily net assets of the Asian High Yield
Fund and 0.40% of the average daily net assets of each of the other Funds.
Trustees Fees
The Funds pay no compensation to the Trustees who are employees of the Advisor
or Sub-Advisor. Trustees who are not Advisor or Sub-Advisor employees receive an
annual fee of $5,000.
B-18
<PAGE>
Orbitex Group of Funds
Notes to Financial Statements (continued)
January 31, 1998 (Unaudited)
4. Aggregate Unrealized Appreciation and Depreciation
Aggregate gross unrealized appreciation/(depreciation) of investments for each
Fund at January 31, 1998, were as follows:
<TABLE>
<CAPTION>
Net
Gross Gross Unrealized
Unrealized Unrealized Appreciation
Appreciation Depreciation (Depreciation)
- --------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Orbitex Strategic Natural Resources Fund $ 131,609 $ 88,269 $ 43,340
Orbitex Info-Tech & Communications Fund 30,167 2,504 27,663
Orbitex Growth Fund 34,863 30,901 3,962
Orbitex Asian High Yield Fund 10,365 139,298 (128,933)
Orbitex Asian Select Advisors Fund 1,196 5,700 (4,504)
</TABLE>
The aggregate cost of each Fund's investments was substantially the same for
book and federal income tax purposes at January 31, 1998.
5. Investment Transactions
The cost of purchases and the proceeds from sales of investments, other than
U.S. Government obligations and short term securities, for the period ended
January 31, 1998, were:
Purchases Sales
- ---------------------------------------------------------------------------
Orbitex Strategic Natural Resources Fund $ 9,912,778 $6,033,218
Orbitex Info-Tech & Communications Fund 808,433 313,970
Orbitex Growth Fund 1,094,176 637,138
Orbitex Asian High Yield Fund 3,815,835 1,760,849
Orbitex Asian Select Advisors Fund 33,610 0
6. Beneficial Interest
The following schedule shows the number of shareholders each owning 5% or more
of a Fund and the total percentage of the Fund held by such shareholders:
5% or Greater Shareholders
----------------------------
Number % of Fund Held
- ----------------------------------------------------------------------------
Orbitex Strategic Natural Resources Fund 2 68%
Orbitex Info-Tech & Communications Fund 1 96%
Orbitex Growth Fund 1 94%
Orbitex Asian High Yield Fund 3 90%
Orbitex Asian Select Advisors Fund 2 100%
B-19
<PAGE>
Orbitex Group of Funds
Notes to Financial Statements (continued)
January 31, 1998 (Unaudited)
6. Beneficial Interest (continued)
The following schedule shows the number of affiliates each owning 10% or more of
a Fund and the total percentage of the Fund held by such affiliates:
<TABLE>
<CAPTION>
10% or Greater Affiliates
-------------------------
Fund Name % of Fund Held
- --------------------------------------------------------------------------------------------------------
<S> <C> <C>
Orbitex Strategic Natural Resources Fund Westmount Investments Limited 41%
Orbitex Info-Tech & Communications Fund Cresta Limited 96%
Orbitex Growth Fund Cresta Limited 94%
Orbitex Select Advisors Fund Konrad Krill 83%
Orbitex Select Advisors Fund Orbitex Management, Inc. 17%
</TABLE>
7. Initial Capitalization and Offering of Shares
During the period May 29, 1997 to commencement of investment operations for each
of the Funds, each Fund had no operations other than those related to
organizational matters, including the initial capital contribution of $20,000
for each Fund and the issuance of 1,333 shares for each of the Funds, with the
exception of the Orbitex Asian High Yield Fund which issued 1,667 shares. There
were no additional transactions until commencement of investment operations for
each of the Funds.
B-20
<PAGE>
PART C
OTHER INFORMATION
Item 24. Financial Statements and Exhibits.
(a) (1) Financial Statements for the Orbitex Group of Funds
as of January 31, 1998, included in the Prospectus:
1. Financial Highlights
(2) Financial Statements for the Oribtex Group of Funds
as of January 31, 1998, included in the Statement of
Additional Information:
1. Schedules of Investments
2. Statements of Assets and Liabilities
3. Statements of Operations
4. Statements of Changes in Net Assets
5. Financial Highlights
6. Notes to Financial Statements
(b) Exhibits:
1. Declaration of Trust of Orbitex Group of Funds (the
"Trust") previously filed in the Registration
Statement on January 29, 1997 is incorporated herein
by reference.
2. By-Laws of the Trust previously filed in the
Registration Statement on January 29, 1997 are
incorporated herein by reference.
3. Not applicable.
4. Not applicable.
5(a). Form of Investment Advisory Agreement by and between
the Trust on behalf of each Fund and Orbitex
Management, Inc. previously filed in Pre-Effective
Amendment No. 1 to the Registration Statement on
April 14, 1997 is incorporated herein by reference.
5(b). Form of Sub-Advisory Agreement among the Trust, on
behalf of the Asian High Yield Fund, Orbitex
Management, Inc. and J.P. Morgan Investment
Management, Inc. previously filed in Pre-Effective
Amendment No. 2 to the Registration Statement dated
September 26, 1997 is incorporated herein by
reference.
5(c). Form of Sub-Advisory Agreement among the Trust, on
behalf of Asian Select Advisors Fund, Orbitex
Management, Inc. and Asian Strategic Investment
Management (HK) Limited previously filed in
Pre-Effective
C-1
<PAGE>
Amendment No. 1 to the Registration Statement on
April 14, 1997 is incorporated herein by reference.
5(d). Form of Sub-Advisory Agreement among the Trust, on
behalf of the Asian Select Advisors Fund, Orbitex
Management, Inc. and Bankers Trust Company previously
filed in Pre-Effective Amendment No. 2 to the
Registration Statement dated September 26, 1997 is
incorporated herein by reference.
5(e). Form of Sub-Subadvisory Agreement among the Trust, on
behalf of the Asian Select Advisors Fund, Orbitex
Management, Inc., Bankers Trust Company and BT Fund
Managers International Limited previously filed in
Pre-Effective Amendment No. 2 to the Registration
Statement dated September 26, 1997 is incorporated
herein by reference.
6(a) Form of Distribution Agreement between the Trust and
Funds Distributor, Inc. previously filed in the
Registration Statement on January 29, 1997 is
incorporated herein by reference.
6(b) Form of Selected Dealers Agreement previously filed
in the Registration Statement on January 29, 1997 is
incorporated herein by reference.
7. Not applicable.
8. Form of Custodian Contract by and between the Trust
and State Street Bank and Trust Company previously
filed in the Registration Statement on January 29,
1997 is incorporated herein by reference.
9(a). Form of Transfer Agency and Service Agreement by and
between the Trust and State Street Bank and Trust
Company previously filed in the Registration
Statement on January 29, 1997 is incorporated herein
by reference.
9(b). Form of Administration Agreement by and between the
Trust and State Street Bank and Trust Company
previously filed in the Registration Statement on
January 29, 1997 is incorporated herein by reference.
10. Opinion and Consent of Rogers & Wells regarding the
legality of the securities being registered
previously filed in Pre-Effective Amendment No. 2 to
the Registration Statement dated September 26, 1997
is incorporated herein by reference.
11. Not applicable.
12. Not applicable.
C-2
<PAGE>
13. Form of Shareholder Subscription Agreement by and
between Orbitex Management, Inc. and the Trust on
behalf of each Fund previously filed in Pre-Effective
Amendment No. 2 to the Registration Statement dated
September 26, 1997 is incorporated herein by
reference.
14. Form of Individual Retirement Account Agreement
previously filed in Pre-Effective Amendment No. 2 to
the Registration Statement dated September 26, 1997
is incorporated herein by reference.
15(a). Distribution Plan and Agreement Pursuant to Rule
12b-1 under the Investment Company Act of 1940
previously filed in Pre-Effective Amendment No. 2 to
the Registration Statement dated September 26, 1997
is incorporated herein by reference.
15(b). Form of Distribution Sub-Agreement previously filed
in Pre-Effective Amendment No. 2 to the Registration
Statement dated September 26, 1997 is incorporated
herein by reference.
16. Schedule for Computation of Performance Quotation is
filed herewith.
17. Financial Data Schedule is filed herewith.
18. Not applicable.
19. Powers of Attorney previously filed in Pre-Effective
Amendment No. 2 to the Registration Statement dated
September 26, 1997 is incorporated herein by
reference.
Item 25. Persons Controlled by or under Common Control with Registrant.
None.
Item 26. Number of Holders of Securities as of January 31, 1998.
<TABLE>
<CAPTION>
Title of Class Number of Record Holders
-------------- ------------------------
<S> <C>
Orbitex Strategic Natural Resources Fund 107
Orbitex Info-Tech & Communications Fund 8
Orbitex Growth Fund 9
Orbitex Asian High Yield Fund 15
Orbitex Asian Select Advisors Fund 8
</TABLE>
Item 27. Indemnification.
Reference is made to Article VI of the Registrant's Amended
Declaration of Trust filed herein as Exhibit 1 to this
Registration Statement.
C-3
<PAGE>
The Registrant will indemnify its Trustees and officers to the
extent permitted by law. Indemnification may not be made if
the Trustee or officer has incurred liability by reason of
willful misfeasance, bad faith, gross negligence or reckless
disregard of duties in the conduct of his office ("Disabling
Conduct"). The means of determining whether indemnification
shall be made are (1) a final decision on the merits by a
court or other body before whom the proceeding is brought that
the Trustee or officer was not liable by reason of Disabling
Conduct, or (2) in the absence of such a decision, a
reasonable determination, based on a review of the facts, that
the Trustee or officer was not liable by reason of Disabling
Conduct. Such latter determination may be made either by (a)
vote of a majority of Trustees who are neither interested
persons (as defined in the Investment Company Act of 1940) nor
parties to the proceeding or (b) independent legal counsel in
a written opinion. The advancement of legal expenses may not
occur unless the Trustee or officer agrees to repay the
advance (if it is determined that he is not entitled to the
indemnification) and one of three other conditions is
satisfied: (1) he provides security for his agreement to
repay; (2) the Registrant is insured against loss by reason of
lawful advances; or (3) the Trustees who are not interested
persons and are not parties to the proceedings, or independent
counsel in a written opinion, determine that there is reason
to believe that the Trustee or officer will be found entitled
to indemnification.
Insofar as indemnification for liability arising under the
Securities Act of 1933 (the "1933 Act") may be permitted to
Trustees, officers, controlling persons of the Registrant
pursuant to the foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is
against public policy as expressed in the 1933 Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a
Trustee, officer or controlling person of the Registrant in
the successful defense of any action, suit or proceeding) is
asserted by such Trustee, officer or controlling person in
connection with the securities being registered, the
Registrant will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in
the 1933 Act and will be governed by the final adjudication of
such issue.
Item 28. Business and Other Connections of the Advisor and the
Sub-Advisors.
(a) Certain information pertaining to business and other
connections of the Registrant's Advisor, Orbitex Management,
Inc., is hereby incorporated herein by reference to the
section of the Prospectus captioned "How the Trust is Managed"
and to the section of the Statement of Additional Information
captioned "Investment Management and Other Services." The
information required by this Item 28 with respect to each
director, officer or partner of Orbitex Management, Inc. is
incorporated by reference to Form ADV filed by Orbitex
Management, Inc. with the Securities and Exchange Commission
pursuant to the Investment Advisers Act of 1940, as amended
(File No. 801-52312).
C-4
<PAGE>
(b) Certain information pertaining to business and other
connections of Asia Strategic Investment Management Limited,
one of the Registrant's Sub-Advisors, is hereby incorporated
herein by reference to the section of the Prospectus captioned
"How the Trust is Managed" and to the section of the Statement
of Additional Information captioned "Investment Management and
Other Services." Set forth below is a list of each director
and officer of Asia Strategic Investment Management Limited
indicating each business, profession, vocation, or employment
of a substantial nature in which each such person has been, at
any time during the past two fiscal years, engaged for his own
account or in the capacity of director, officer, partner, or
trustee. The principal business address of each individual
listed in the table below, unless otherwise indicated, is
Chekiang First Bank Center, 1 Duddell Street, Hong Kong.
<TABLE>
<CAPTION>
Position with Asian Strategic Investment
Management Limited ("ASIM") and
Name Other Positions within Last Two Years
---- -------------------------------------
<S> <C>
Michael Tze Hau Lee Managing Director, ASIM, 1995 - present; Director/Equity
Partner, Lloyd George Management (Hong Kong) Ltd., 1992 -
1995.
Patrick Wai Cheong Shum Chief Investment Officer, ASIM, 1995 - present;
Director/Senior Fund Manager, Barclays de Zoete Wedd
Investment Management Hong Kong Limited, 1990 - 1995.
James Kuang Kuo Cheng Research Director, ASIM, April 1996 - present; Executive
Director/Senior Fund Manager, Morgan Stanley Asset
Management (Singapore) Ltd., 1988 - 1996.
Peter King Wah Woo Director, ASIM, 1995 - present; Director/Associate
Director, Kim Eng Securities (Hong Kong) Ltd., 1993 - 1995.
The Honourable Dr. David K.P. Non-executive director, ASIM; Chairman and Chief
Li Executive of the Bank of East Asia, Limited.
Samson Kai Cheong Li Non-executive director, ASIM; Senior General Manager of
the Bank of East Asia, Limited.
</TABLE>
(c) Certain information pertaining to business and other
connections of Bankers Trust Company, one of the Registrant's
Sub-Advisors, is hereby incorporated herein by reference to
the section of the Prospectus captioned "How the Trust is
Managed" and to the section of the Statement of Additional
Information captioned "Investment Management and Other
Services." Set forth
C-5
<PAGE>
below is a list of each director and officer of Bankers Trust
Company indicating each business, profession, vocation, or
employment of a substantial nature in which each such person
has been, at any time during the past two fiscal years,
engaged for his own account or in the capacity of director,
officer, partner, or trustee. The principal business address
of each individual listed in the table below, unless otherwise
indicated, is One Bankers Trust Plaza, New York, New York
10006.
<TABLE>
<CAPTION>
Position with Bankers Trust Company and
Name Business and Other Positions within Last Two Years
---- --------------------------------------------------
<S> <C>
David Marshall Chief information officer of Bankers Trust New York
Corporation (the "Corporation"). Executive vice president of
the Corporation and a senior managing director of Bankers
Trust Company. A member of Bankers Trust's Management
Committee. Has responsibility for Bankers Trust's technology
infrastructure and for the operations units of its
Investment Banking, Trading & Sales and Risk Management
Services businesses, as well as for the further development
of the firm's technology strategy. Previously, executive
vice president and chief information officer of Canadian
Imperial Bank of Commerce. Earlier with Unitel
Communications Inc. and with the Canadian government from
1977 to 1993, serving consecutively as the country's
assistant auditor general; assistant deputy minister,
Information Technology for Revenue Canada and assistant
deputy minister, Information Technology for Employment and
Immigration Canada. Also, previously with Toronto Dominion
Bank from 1966 to 1977. Member of the Advisory Boards of
Hewlett Packard, IBM Canada and Microsoft.
Richard H. Daniel Chief Financial Officer, Bankers Trust New York Corporation.
Vice chairman and chief financial officer of both Bankers
Trust Company and the parent, Bankers Trust New York
Corporation. Joined Bankers Trust as chief financial officer
in February of 1996 from Federal Home Loan Mortgage
Corporation, where he had been chief financial officer since
June of 1994. Previously executive vice president and
director of financial analysis and planning at BankAmerica
Corporation from 1987 to 1994, and was earlier with Federal
National Mortgage Corporation, from 1983 to 1987, as senior
vice president for mortgage-backed securities.
C-6
<PAGE>
Position with Bankers Trust Company and
Name Business and Other Positions within Last Two Years
---- --------------------------------------------------
With Wells Fargo Bank from 1973 to 1983. Beneficial owner,
General Partner of Daniel Brothers, Daniel Lingo &
Associates, Daniel Pelt and Associates and a beneficial
owner of Rhea C. Daniel Trust.
Donald L. Staheli Chairman of the Board and Chief Executive Officer,
Continental Grain Company. Director of Bankers Trust
Company. Also a director of ContiFinancial Corporation,
Prudential Life Insurance Company of America, Fresenius
Medical Care, A.g., America-China Society, National
Committee on United States-China Relations and the New York
City Partnership; chairman of the U.S.-China Business
Council on Foreign Relations and the National Advisory
Council of Brigham Young University's Marriott School of
Management; vice chairman of The Points of Light Foundation;
and a trustee of the American Graduate School of
International Management.
Patricia Carry Stewart Former Vice President, The Edna McConnell Clark Foundation
(a charitable foundation). Director of Bankers Trust. Also a
director of CVS Corporation and of the Community Foundation
for Palm Beach and Martin Counties, and a trustee emerita of
Cornell University.
George J. Vojta Vice Chairman of the Corporation, Bankers Trust Company.
Director of Bankers Trust Company. Also a director of
Alicorp S.A., Northwest Airlines, Private Export Funding
Corp., the New York State Banking Board and St.
Lukes-Roosevelt Hospital Center; a partner of New York City
Partnership; and chairman, Wharton Financial Services
Center.
Paul A. Volcker Director of Various Corporations. Director of Bankers Trust
Company. Former Chairman and Chief Executive Officer of
Wolfensohn & Co., Inc. and former Chairman of the Board of
Governors of the Federal Reserve System. Also a director of
the American Stock Exchange, Nestle S.A., Prudential
Insurance Company and UAL Corporation; chairman of Group of
30; North American Chairman of the Trilateral Commission;
co-chairman of Bretton Woods Committee and U.S./Hong Kong
Economic Cooperation Committee; director of
C-7
<PAGE>
Position with Bankers Trust Company and
Name Business and Other Positions within Last Two Years
---- --------------------------------------------------
American Council on Germany, the Aspen Institute, Council on
Foreign Relations, and The Japan Society; trustee of The
American Assembly; and member of Senior Advisory Board of
The Arthritis Foundation.
Hamish Maxwell Retired Chairman and Chief Executive Officer, Philip Morris
Companies, Inc. Director of Bankers Trust Company. Also a
director of The News Corporation Limited and Sola
International Inc., and chairman of WWP Group plc.
Frank N. Newman Chairman of the Board, Chief Executive Officer and President
of the Corporation, Bankers Trust Company. Director of
Bankers Trust Company. Former deputy secretary of the United
States Treasury and former vice chairman of the board and
director of BankAmerica Corporation and Bank of America
NT&SA. Also a director of Dow-Jones, Inc. and Carnegie Hall.
N.J. Nicholas Jr. Investor. Director of Bankers Trust Company. Former co-chief
executive officer of Time Warner Inc. Also a director of
Boston Scientific Corporation and Xerox Corporation.
Russell E. Palmer Chairman and Chief Executive Officer, The Palmer Group.
Director of Bankers Trust Company. Former Dean of The
Wharton School, University of Pennsylvania and former chief
executive officer of Touche Ross & Co. (now Deloitte &
Touche). Also a director of Allied-Signal Inc., Federal Home
Loan Mortgage Corporation, GTE Corporation, The May
Department Stores Company and Safeguard Scientifics, Inc.;
member, advisory board of the Controller General of the
United States; and a trustee, the University of
Pennsylvania.
George B. Beitzel Director of Various Corporations. Director of Bankers Trust
Company. Retired senior vice president and director,
International Business Machines Corporation. Also a director
of Computer Task Group, Phillips Petroleum Company, Caliber
Systems, Inc. (formerly Roadway Services, Inc.), Rohm and
Haas Company and TIG Holdings; chairman emeritus of Amherst
College;
C-8
<PAGE>
Position with Bankers Trust Company and
Name Business and Other Positions within Last Two Years
---- --------------------------------------------------
and chairman of the Colonial Williamsburg Foundation.
Phillip A. Grifiths Director, Institute for Advanced Study. Director of Bankers
Trust Company. Chairman, Committee on Science, Engineering
and Public Policy of the National Academies of Sciences and
Engineering & the Institute of Medicine; member, National
Academy of Sciences, American Academy of Arts and Sciences
and American Philosophical Society; member and chairman of
the Nominations Committee and Committee on Science and
Engineering Indicators, National Science Board; and trustee
of North Carolina School of Science and Mathematics and the
Woodward Academy. Former member of the board of directors,
Research Triangle Institute.
William R. Howell Chairman Emeritus, J.C. Penny Company, Inc. Director of
Bankers Trust Company. Also a director of Exxon Corporation,
Halliburton Company, Warner-Lambert Company, The Williams
Companies, Inc. and the National Retail Federation.
Vernon E. Jordan, Jr. Senior Partner, Akin Gump, Strauss, Hauer & Feld, LLP,
Attorneys-at-law Washington, D.C. and Dallas, Texas.
Director of Bankers Trust Company. Former president of the
National Urban League, Inc. Also a director of American
Express Company, Dow-Jones, Inc., J.C. Penny Company, Inc.,
Revlon Group Incorporated, Ryder Systems, Inc. Sara Lee
Corporation, Union Carbide Corporation and Xerox
Corporation; and a trustee of Brookings Institution, The
Ford Foundation and Howard University.
Melvin A. Yellin Senior Managing Director and General Counsel, Bankers Trust
Company. Director of 1136 Tenants Corporation and ABA
Securities Association.
</TABLE>
(d) Certain information pertaining to business and other
connections of J.P. Morgan Investment Management Inc., one of
the Registrant's Sub-Advisors, is hereby incorporated herein
by reference to the section of the Prospectus captioned "How
the Trust is Managed" and to the section of the Statement of
Additional Information captioned "Investment Management and
Other Services." The information required by this Item 28 with
respect to each director, officer or
C-9
<PAGE>
partner of J.P. Morgan Investment Management Inc. is
incorporated by reference to Form ADV filed by J.P. Morgan
Investment Management Inc. with the Securities and Exchange
Commission pursuant to the Investment Advisers Act of 1940, as
amended (File No. 801-21011).
Item 29. Principal Underwriters.
(a) Funds Distributor, Inc. (the "Funds Distributor")
acts as principal underwriter for the following
investment companies.
American Century California Tax-Free and Municipal Funds
American Century Capital Portfolios, Inc.
American Century Government Income Trust
American Century International Bond Funds
American Century Investment Trust
American Century Municipal Trust
American Century Mutual Funds, Inc.
American Century Premium Reserves, Inc.
American Century Quantitative Equity Funds
American Century Strategic Assets Allocations, Inc.
American Century Target Maturities Trust
American Century Variable Portfolios, Inc.
American Century World Mutual Funds, Inc.
BJB Investment Funds
The Brinson Funds
Dresdner RCM Capital Funds, Inc.
Dresdner RCM Equity Funds, Inc.
Harris Insight Funds Trust
HT Insight Funds, Inc. d/b/a Harris Insight Funds
J.P. Morgan Institutional Funds
J.P. Morgan Funds
The JPM Series Trust
The JPM Series Trust II
LaSalle Partners Funds, Inc.
Monetta Fund, Inc.
Monetta Trust
The Montgomery Funds
The Montgomery Funds II
The Munder Framlington Funds
The Munder Funds Trust
The Munder Funds, Inc.
Orbitex Group of Funds
St. Clair Funds, Inc.
The Skyline Funds
Waterhouse Investors Family of Funds, Inc.
WEBS Index Fund, Inc.
C-10
<PAGE>
Funds Distributor is registered with the Securities and
Exchange Commission as a broker-dealer and is a member of the
National Association of Securities Dealers. Funds Distributor
is located at 60 State Street, Suite 1300, Boston,
Massachusetts 02109. Funds Distributor is an indirect
wholly-owned subsidiary of Boston Institutional Group, Inc. a
holding company all of whose outstanding shares are owned by
key employees.
(b) The following is a list of the executive directors,
officers, and partners of Funds Distributor, Inc.
Director, President and Chief -Marie E. Connolly
Executive Officer
Executive Vice President -Richard W. Ingram
Executive Vice President -Donald R. Roberson
Executive Vice President -William S. Nichols
Senior Vice President -Michael S. Petrucelli
Director, Senior Vice President, -Joseph F. Tower, III
Treasurer and Chief
Financial Officer
Senior Vice President -Paula R. David
Senior Vice President -Allen B. Closser
Senior Vice President -Bernard A. Whalen
Director -William J. Nutt
(c) Not applicable.
Item 30. Location of Accounts and Records.
The following entities prepare, maintain and preserve the
records required by Section 31(a) of the 1940 Act for the
Registrant. These services are provided to the Registrant
through written agreements between the parties to the effect
that such services will be provided to the Registrant for such
periods prescribed by the rules and regulations of the
Securities and Exchange Commission under the 1940 Act and such
records are the property of the entity required to maintain
and preserve such records and will be surrendered promptly on
request.
State Street Bank and Trust Company ("State Street") provides
custodian and accounting services pursuant to a Custodian
Contract between State Street and the Trust and provides
transfer agent and dividend disbursing services pursuant to a
Transfer Agency and Service Agreement between State Street and
the Trust. In such capacities, State Street provides pricing
for each Fund's portfolio securities, keeps records regarding
securities and other assets in custody and in transfer, bank
statements, canceled checks, financial books and records, and
keeps records of each shareholder's account and all
disbursements made to shareholders. Orbitex Management, Inc.,
pursuant to its Investment Advisory Agreement with respect to
each Fund, maintains all records required pursuant to such
agreement. Each Sub-Advisor, pursuant to its Sub-Advisory
Agreement with Orbitex Management, Inc.
C-11
<PAGE>
and the Trust with regard to each Fund, maintains all records
required pursuant to such agreement. State Street, pursuant to
its Administration Agreement with the Trust, maintains all
records required pursuant to such agreement. Funds
Distributor, Inc., as principal underwriter for the Trust,
maintains all records required to be kept pursuant to the
Distribution Agreement with the Trust, and such other records
as must be maintained pursuant to the Trust's Distribution
Plan and Agreement adopted pursuant to Rule 12b-1 under the
1940 Act.
Item 31. Management Services.
Not applicable.
Item 32. Undertakings.
(a) Not applicable.
(b) Registrant undertakes to furnish each person to whom
a prospectus is delivered with a copy of the Registrant's
latest annual report to shareholders, upon request and without
charge, beginning with the fiscal year ending April 30, 1998.
C-12
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly casued this amendment
to its Registration Statement to be signed on its behalf by the undersigned,
thereto duly authorized in the City of New York, and the State of New York on
the 16th day of March 1998.
ORBITEX GROUP OF FUNDS
By: /s/ James L. Nelson
---------------------
James L. Nelson
Trustee and President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the date indicated.
<TABLE>
<CAPTION>
Signature Title Date
- ---------- ----- ----
<S> <C> <C>
Otto J. Felber* Trustee March 16, 1998
- ---------------
Otto J. Felber
/s/ James L. Nelson Trustee, President, Assistant March 16, 1998
- --------------------------- Treasurer & Assistant Secretary
James L. Nelson
/s/ Mark Breault Secretary March 16, 1998
- ---------------------------
Mark Breault
/s/ James Kegley Treasurer March 16, 1998
- ---------------------------
James Kegley
Ronald Altbach* Trustee March 16, 1998
- ---------------------------
Ronald Altbach
Thomas Bachmann* Trustee March 16, 1998
- ---------------------------
Thomas Bachmann
Robert Raucci* Trustee March 16, 1998
- ---------------------------
Robert Raucci
* By: /s/ James L. Nelson
- -------------------------------------------------
James L. Nelson, Attorney-in-Fact
</TABLE>
C-13
<PAGE>
EXHIBIT LIST
Exhibit
Number Description
- ------ -----------
16 Schedule for Computation of Performance Quotation.
17 Financial Data Schedule.
C-14
EXHIBIT 16
The Orbitex Group of Funds
Schedule of Computation of Performance Quotation
1. Average Annual Total Return:
Formula: P(1+T)n=ERV
T = average total return;
ERV = ending redeemable value of a hypothetical
$1,000 payment made at the beginning of the
1, 5 or 10 year (or other) periods at the
end of the applicable period (or a
fractional portion thereof);
P = hypothetical initial payment of $1,000; and
n = period covered by the computation, expressed
in years and portion of a year
2. Aggregate Total Return:
Formula: (ERV/P)-1
C-15
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001029068
<NAME> ORBITEX GROUP OF FUNDS
<SERIES>
<NUMBER> 1
<NAME> STRATEGIC
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Apr-30-1998
<PERIOD-START> May-01-1997
<PERIOD-END> Jan-31-1998
<INVESTMENTS-AT-COST> 4,177,780
<INVESTMENTS-AT-VALUE> 4,221,120
<RECEIVABLES> 258,364
<ASSETS-OTHER> 21,148
<OTHER-ITEMS-ASSETS> 70,286
<TOTAL-ASSETS> 4,570,918
<PAYABLE-FOR-SECURITIES> 773,116
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 72,785
<TOTAL-LIABILITIES> 845,901
<SENIOR-EQUITY> 2,556
<PAID-IN-CAPITAL-COMMON> 4,090,147
<SHARES-COMMON-STOCK> 255,634
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 16,919
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (426,402)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 41,797
<NET-ASSETS> 3,725,017
<DIVIDEND-INCOME> 28,520
<INTEREST-INCOME> 18,084
<OTHER-INCOME> 0
<EXPENSES-NET> 22,538
<NET-INVESTMENT-INCOME> 24,066
<REALIZED-GAINS-CURRENT> (419,486)
<APPREC-INCREASE-CURRENT> 41,797
<NET-CHANGE-FROM-OPS> (353,623)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (7,147)
<DISTRIBUTIONS-OF-GAINS> (6,916)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 9,194,988
<NUMBER-OF-SHARES-REDEEMED> (5,132,421)
<SHARES-REINVESTED> 10,136
<NET-CHANGE-IN-ASSETS> 3,705,017
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 11,788
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 105,223
<AVERAGE-NET-ASSETS> 3,412,891
<PER-SHARE-NAV-BEGIN> 15.00
<PER-SHARE-NII> 0.13
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001029068
<NAME> ORBITEX GROUP OF FUNDS
<SERIES>
<NUMBER> 2
<NAME> INFO-TECH AND
<S> <C>
<PERIOD-TYPE> 9-MOS
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<PERIOD-END> Jan-31-1998
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<ACCUMULATED-NII-CURRENT> (1,954)
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<NET-INVESTMENT-INCOME> (1,954)
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001029068
<NAME> ORBITEX GROUP OF FUNDS
<SERIES>
<NUMBER> 3
<NAME> ASIAN SELECT
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Apr-30-1998
<PERIOD-START> May-01-1997
<PERIOD-END> Jan-31-1998
<INVESTMENTS-AT-COST> 33,609
<INVESTMENTS-AT-VALUE> 29,105
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<OVERDISTRIBUTION-GAINS> 0
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<EXPENSES-NET> 762
<NET-INVESTMENT-INCOME> (456)
<REALIZED-GAINS-CURRENT> 47
<APPREC-INCREASE-CURRENT> (4,504)
<NET-CHANGE-FROM-OPS> (4,913)
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<INTEREST-EXPENSE> 0
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<AVERAGE-NET-ASSETS> 119,642
<PER-SHARE-NAV-BEGIN> 15.00
<PER-SHARE-NII> (0.06)
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001029068
<NAME> ORBITEX GROUP OF FUNDS
<SERIES>
<NUMBER> 4
<NAME> ASIAN HIGH
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Apr-30-1998
<PERIOD-START> May-01-1997
<PERIOD-END> Jan-31-1998
<INVESTMENTS-AT-COST> 2,430,625
<INVESTMENTS-AT-VALUE> 2,301,692
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<REALIZED-GAINS-CURRENT> (137,597)
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<NUMBER-OF-SHARES-SOLD> 4,347,959
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<AVERAGE-NET-ASSETS> 2,133,628
<PER-SHARE-NAV-BEGIN> 12.00
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<PER-SHARE-GAIN-APPREC> (1.51)
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0001029068
<NAME> ORBITEX GROUP OF FUNDS
<SERIES>
<NUMBER> 5
<NAME> GROWTH FUND
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> Apr-30-1998
<PERIOD-START> May-01-1997
<PERIOD-END> Jan-31-1998
<INVESTMENTS-AT-COST> 461,849
<INVESTMENTS-AT-VALUE> 465,811
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<OTHER-ITEMS-ASSETS> 69,893
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<TOTAL-LIABILITIES> 62,671
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<SHARES-COMMON-STOCK> 35,274
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<ACCUMULATED-NII-CURRENT> (1,600)
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<OVERDISTRIBUTION-GAINS> 0
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<EXPENSES-NET> 2,380
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<REALIZED-GAINS-CURRENT> 4,810
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<EXPENSE-RATIO> 1.60
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</TABLE>
