<PAGE>
- ---------------------------------------------------ORBITEX-Registered Trademark-
GROUP OF FUNDS
FUNDS DISTRIBUTOR, INC., DISTRIBUTOR
ANNUAL REPORT APRIL 30, 1999
THE
ORBITEX-Registered Trademark-
GROUP OF FUNDS
ORBITEX
STRATEGIC
NATURAL
RESOURCES
FUND
ORBITEX
INFO-TECH &
COMMUNICATIONS
FUND
ORBITEX
GROWTH
FUND
THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION UNLESS
PRECEEDED OR ACCOMPANIED BY A PROSPECTUS.
<PAGE>
Letter from the Management of the Orbitex Group of Funds 1
- --------------------------------------------------------------------------------
- -----------------------------------------
Dear Shareholder:
- -----------------------------------------
We are pleased to provide you with
- -----------------------------------------
the Annual Report of the Orbitex Group
- -----------------------------------------
of Funds for the 12 months ended
- -----------------------------------------
April 30, 1999.
- -----------------------------------------
The three equity Funds reflected the upward trending equity markets in general.
Two of the Funds, in particular, delivered strong performance relative to their
benchmarks. We believe the Funds are well positioned to take advantage of
continuing growth of the domestic U.S. economy, as well as the economic
resurgence underway in emerging markets around the world. Assets of two Orbitex
Funds, the Asian Select Advisors Funds and the Asian High Yield Fund, were
returned to shareholders due to the severe economic conditions in Asia.
The Orbitex Group of Funds are pleased to announce the introduction of two
new equity portfolios, the Orbitex Focus 30 Fund and the Orbitex Health &
Biotechnology Fund.
Thank you for choosing the Orbitex Group of Funds to help meet your
investment goals. Should you have any questions or wish to learn more about any
of the Funds, please contact your investment professional or the Orbitex Group
of Funds at 1-888-ORBITEX (672-4839).
Sincerely,
/s/ Richard Stierwalt
RICHARD STIERWALT
CHIEF EXECUTIVE OFFICER
ORBITEX MANAGEMENT, INC.
<PAGE>
Performance Highlights
- --------------------------------------------------------------------------------
TOTAL RETURNS AS OF APRIL 30, 1999
<TABLE>
<CAPTION>
1 YEAR SINCE INCEPTION INCEPTION DATE
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ORBITEX
STRATEGIC Class A Shares (12.22%) (1.86%) 10/23/97
NATURAL (incl. max. 5.75% sales charge)
RESOURCES
FUND Class B Shares NA 26.92% 9/21/98
- ---------------------------------------------------------------------------------------------------------------
ORBITEX Class A Shares 48.36% 54.51% 10/22/97
INFO-TECH (incl. max. 5.75% sales charge)
&
COMMUNICATIONS Class B Shares NA 68.67% 9/16/98
FUND
- ---------------------------------------------------------------------------------------------------------------
ORBITEX Class A Shares 2.82% 14.46% 10/22/97
GROWTH (incl. max. 5.75% sales charge)
FUND
Class B Shares NA 18.61% 9/16/98
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
Total return is calculated assuming reinvestment of all dividends. Total returns
would have been lower had the Advisor (Orbitex Management, Inc.), the
Distributor (Funds Distributor, Inc.) and the Administrator and Custodian (State
Street Bank and Trust Company) not waived or reimbursed a portion of their fees.
The performance of each class may vary based on differences in loads and fees
paid by the shareholders investing in each class. Results represent past
performance and do not indicate future results. The value of an investment in
the Funds and the return on investment both will fluctuate and redemption
proceeds may be higher or lower than an investor's original cost.
<PAGE>
- --------------------------------------------------------------------------------
GROWTH OF A $10,000 INVESTMENT
These charts illustrate a comparison of a hypothetical investment of $10,000 in
each of the Orbitex Group of Funds (assumes reinvestment of all dividends and
distributions and a one-time sales charge) versus the Fund's benchmark index.
[GRAPH]
Strategic Natural
Resources Fund Lipper Natural
(incl. 5.75% sales charge) Resources Fund Category S&P 500 Index
- -------------------------------------------------------------------------------
10/23/97 $9,425.00 $10,000.00 $10,000.00
11/30/97 $8,912.67 $9,087.00 $10,463.00
12/31/97 $8,760.59 $9,011.00 $10,643.00
01/31/98 $8,666.47 $8,645.00 $10,760.00
02/28/98 $8,995.73 $9,001.00 $11,536.00
03/31/98 $9,631.91 $9,332.00 $12,127.00
04/30/98 $9,834.06 $9,620.00 $12,249.00
05/31/98 $9,831.43 $8,420.00 $11,587.00
06/30/98 $9,396.02 $7,960.00 $12,058.00
07/31/98 $8,197.06 $7,143.00 $11,929.00
08/31/98 $6,878.21 $5,767.00 $10,207.00
09/30/98 $7,799.51 $6,747.00 $10,858.00
10/31/98 $7,988.82 $6,992.00 $11,742.00
11/30/98 $7,471.38 $6,684.00 $12,454.00
12/31/98 $7,506.14 $6,545.00 $13,171.00
01/31/99 $7,201.32 $6,235.00 $13,721.00
02/28/99 $7,271.57 $6,068.00 $13,295.00
03/31/99 $8,294.54 $6,961.00 $13,827.00
04/30/99 $9,721.49 $8,176.00 $14,362.00
STRATEGIC NATURAL RESOURCES FUND
The Lipper Natural Resources Funds Index is an equal-weighted performance index,
adjusted for capital-gain distributions and income dividends, of the largest
qualifying funds having this investment objective, and is compiled by Lipper,
Inc.
[GRAPH]
Info-Tech &
Communications Fund Lipper Science &
(incl. 5.75% sales charge) Technology Index S&P 500 Index
- -------------------------------------------------------------------------------
10/22/97 $9,425.00 $10,000.00 $10,000.00
11/30/97 $8,878.35 $9,895.00 $10,463.00
12/31/97 $8,859.50 $9,548.00 $10,643.00
01/31/98 $9,081.56 $9,788.00 $10,760.00
02/28/98 $10,706.80 $10,931.00 $11,536.00
03/31/98 $11,498.50 $11,158.00 $12,127.00
04/30/98 $12,327.90 $11,609.00 $12,249.00
05/31/98 $11,611.60 $9,780.00 $11,587.00
06/30/98 $12,918.53 $10,352.00 $12,058.00
07/31/98 $12,987.65 $10,255.00 $11,929.00
08/31/98 $10,656.53 $8,330.00 $10,207.00
09/30/98 $11,077.52 $9,313.00 $10,858.00
10/31/98 $12,239.93 $10,024.00 $11,742.00
11/30/98 $12,786.58 $11,147.00 $12,454.00
12/31/98 $13,481.90 $12,950.00 $13,171.00
01/31/99 $16,163.06 $14,628.00 $13,721.00
02/28/99 $15,567.25 $13,101.00 $13,295.00
03/31/99 $17,189.89 $14,436.00 $13,827.00
04/30/99 $19,408.40 $14,617.00 $14,362.00
INFO-TECH & COMMUNICATIONS FUND
The Lipper Science and Technology Funds Index is an equal-weighted performance
index, adjusted for capital-gain distributions and income dividends, of the
largest qualifying funds having this investment objective, and is compiled by
Lipper, Inc.
[GRAPH]
Growth Fund
(incl. 5.75% sales charge) S&P 500 Index
- -----------------------------------------------------
10/22/97 $9,425.00 $10,000.00
11/30/97 $9,758.02 $10,463.00
12/31/97 $9,940.23 $10,643.00
01/31/98 $9,557.71 $10,760.00
02/28/98 $10,499.45 $11,536.00
03/31/98 $10,970.70 $12,127.00
04/30/98 $11,266.02 $12,249.00
05/31/98 $11,002.12 $11,587.00
06/30/98 $11,485.93 $12,058.00
07/31/98 $11,705.85 $11,929.00
08/31/98 $9,695.18 $10,207.00
09/30/98 $10,122.45 $10,858.00
10/31/98 $10,468.03 $11,742.00
11/30/98 $10,857.60 $12,454.00
12/31/98 $11,346.23 $13,171.00
01/31/99 $12,156.20 $13,721.00
02/28/99 $11,682.07 $13,295.00
03/31/99 $12,617.16 $13,827.00
04/30/99 $12,287.90 $14,362.00
GROWTH FUND
The S&P 500-Registered Trademark- Index is an unmanaged index. Index returns
assume reinvestment of dividends; unlike the Fund's returns, however, they do
not reflect any fees or expenses.
<PAGE>
Letter from Fund Management ORBITEX STRATEGIC NATURAL RESOURCES FUND
- --------------------------------------------------------------------------------
- -----------------------------------------
Dear Shareholder:
- -----------------------------------------
The Orbitex Strategic Natural Resources
- -----------------------------------------
Fund outperformed the Lipper Natural
- -----------------------------------------
Resources Funds Average for the 12
- -----------------------------------------
months ended April 30, 1999. The Fund's
- -----------------------------------------
total return (Class A shares) was (6.86%)
- -----------------------------------------
versus (11.47%) for the Lipper average.
- -----------------------------------------
The Fund seeks to achieve capital growth
- -----------------------------------------
through a flexible policy of investing
- -----------------------------------------
primarily in common stock of companies
- -----------------------------------------
engaged in, or supportive of, natural
- -----------------------------------------
resource industries.
- -----------------------------------------
<TABLE>
<CAPTION>
TOP 10 PORTFOLIO HOLDINGS*
<S> <C>
- -----------------------------------------
Exxon Corp. 3.9%
- -----------------------------------------
Vastar Resources, Inc. 3.4%
- -----------------------------------------
USX-Marathon Group 3.2%
- -----------------------------------------
Williams Companies, Inc. 2.9%
- -----------------------------------------
Chevron Corp. 2.5%
- -----------------------------------------
Champion International Corp. 2.3%
- -----------------------------------------
Reynolds Metals Co. 2.2%
- -----------------------------------------
Royal Dutch Petroleum Co. 2.1%
- -----------------------------------------
Boise Cascade Corp. 2.1%
- -----------------------------------------
Fort James Corp. 2.0%
- -----------------------------------------
</TABLE>
All holdings as of 4/30/99. Portfolio holdings subject to change and should not
be considered a recommendation to buy individual securities.
* Based on total investment value of the Fund as of 4/30/99.
INVESTMENT ENVIRONMENT The past 12 months have been difficult for most natural
resource commodities and the companies that mine, drill or explore, as well as
those that service the sector. Prices for oil, gas, base and precious metals,
paper, steel and chemicals have collapsed. The Commodities Resource Board Index,
a measure of major natural resources, fell to a 21-year low in 1998. Behind the
soft commodity prices and low demand lie the deep recession in Asian emerging
markets, among other factors.
PORTFOLIO POSITIONING With low commodity prices, consolidation picked up as
companies sought to take advantage of low valuations and improving fundamentals.
The Fund benefited from its holdings in Atlantic Richfield, Mobil, Vastar and
J.R. McDermott. The economies of many Pacific Rim countries have stopped
contracting and, in many instances, are now beginning to expand.
<PAGE>
5
- --------------------------------------------------------------------------------
The Fund emphasized large capitalization, value-oriented securities across the
natural resource sector. During the period, the Fund benefited from its focus on
the oil, natural gas and paper industries, while underweighting precious metals,
due to expected central bank sales of gold. Contributing to the Fund's
performance were Exxon, BP Amoco, Enron, Williams Companies, Boise Cascade,
Champion, DuPont and Alcoa. We were disappointed by returns from investments in
Monsanto, Newmont Mining and Valero Energy.
INVESTMENT OUTLOOK We believe that low valuations, both relative and absolute,
along with sustained global growth, will lead to a strong recovery in
resource-based stocks. As global economies strengthen, demand for most
commodities should also increase while supply declines. Should natural resource
prices stay at current levels or trend higher, we expect to see more
consolidations, restructuring and joint ventures. We believe that international
economic activity will increase, which should benefit our Fund.
Sincerely,
KONRAD KRILL
PORTFOLIO MANAGER
[GRAPHIC]
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION*
<S> <C>
STEEL 2.88%
SHORT-TERM INVESTMENTS 4.05%
MINING 5.49%
PETROLEUM SERVICES 4.56%
OIL 8.44%
PAPER & RELATED PRODUCTS 8.60%
OIL & GAS DRILLING 4.98%
OIL FIELD SERVICES 3.08%
OIL FIELD MACHINE &
EQUIPMENT MANUFACTURING 1.20%
OIL & GAS EXPLORATION
AND PRODUCTION 21.99%
LIFE SCIENCES 1.87%
INTERNATIONAL OIL 14.33%
GOLD 1.62%
ALUMINUM 4.12%
GAS & PIPELINE UTILITIES 4.16%
ELECTRONICS 1.78%
BUILDING CONSTRUCTION 0.98%
ELECTRIC UTILITIES 1.45%
CHEMICALS 4.42%
</TABLE>
* Based on total investment value of the Fund as of 4/30/99.
<PAGE>
Letter from Fund Management ORBITEX INFO-TECH & COMMUNICATIONS FUND
- --------------------------------------------------------------------------------
- -----------------------------------------
Dear Shareholder:
- -----------------------------------------
The Orbitex Info-Tech & Communications
- -----------------------------------------
Fund significantly outperformed the Lipper
- -----------------------------------------
Science & Technology Funds Average for
- -----------------------------------------
the 12 months ended April 30, 1999. The
- -----------------------------------------
Fund's total return (Class A shares) was
- -----------------------------------------
57.43% compared with 38.51% for the
- -----------------------------------------
Lipper average. The Fund seeks to achieve
- -----------------------------------------
superior long-term capital growth through
- -----------------------------------------
selective investment in companies
- -----------------------------------------
engaged in the communication, informa-
- -----------------------------------------
tion and related technology industries.
- -----------------------------------------
<TABLE>
<CAPTION>
TOP 10 PORTFOLIO HOLDINGS*
<S> <C>
- -----------------------------------------
FORE Systems, Inc. 5.52%
- -----------------------------------------
Intermedia Communications, Inc. 4.98%
- -----------------------------------------
MCI WorldCom, Inc. 4.73%
- -----------------------------------------
CIENA Corp. 4.20%
- -----------------------------------------
Applied Materials, Inc. 4.15%
- -----------------------------------------
QUALCOMM, Inc. 3.97%
- -----------------------------------------
WinStar Communications, Inc. 3.86%
- -----------------------------------------
ICG Communications, Inc. 3.15%
- -----------------------------------------
Omnipoint Corp. 3.04%
- -----------------------------------------
CISCO Systems, Inc. 2.94%
- -----------------------------------------
</TABLE>
All holdings as of 4/30/99. Portfolio holdings subject to change and should not
be considered a recommendation to buy individual securities.
* Based on total investment value of the Fund as of 4/30/99.
INVESTMENT ENVIRONMENT Communications networks, computers, and software - the
infrastructure that enables the Internet - are being deployed around the world
at tremendous speed and expense. During the period, this asset base provided the
support behind the valuations of many stocks within the sector. Technology is no
longer about just computers and software, it is about networks.
PORTFOLIO POSITIONING By using the deployment of global networks as our
timeline and analyzing the companies that might benefit, we have been able to
invest successfully across a broad spectrum of network, Internet, global
telephone and media companies.
We focused heavily on telecommunications companies and network stocks, which
were benefiting from strong consumer demand for Internet usage and corporate
demand for greater fiber optic network capacity. Names that were
<PAGE>
7
- --------------------------------------------------------------------------------
emphasized included MCI WorldCom, AT&T, AirTouch, Omnipoint, CISCO, FORE
Systems, QUALCOMM, UNIPHASE and JDS FITEL. Then, later in the year, we shifted
heavily into hardware and semiconductor stocks, benefiting from positions in
Dell, Microsoft, EMC, Sun Microsystems, Hewlett-Packard, PMC Sierra, and Micron
Technology. Throughout the year, the Fund maintained an emphasis on Internet
names, such as OzEmail (acquired by MCI WorldCom), RealNetworks, VerticalNet,
and Priceline.com. Emerging market telecom stocks were largely avoided. The Fund
achieved less than expected returns from our investment in Peoplesoft and
Evolving Systems.
INVESTMENT OUTLOOK We believe strongly that the global deployment of
communications networks, from fiber optics to wireless, has only just begun. We
expect to see continued global mergers across a range of industries,
extraordinary pressure on the existing computer infrastructures of corporations,
and exuberant demand for high-speed networks (bandwidth) from consumers and
businesses alike. This is what we call the "FutureNet," and we anticipate being
fully invested in the companies that are bringing technology solutions to the
marketplace.
Sincerely,
CRAIG ELLIS
PORTFOLIO MANAGER
[GRAPHIC]
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION*
<S> <C>
SHORT-TERM INVESTMENTS 11.95%
BROADCASTING 4.61%
BUSINESS SERVICES 0.88%
COMPUTERS & BUSINESS EQUIPMENT 5.95%
PREFERRED STOCKS 1.81%
ELECTRONICS 14.48%
TELEPHONE 20.50%
FINANCIAL SERVICES 2.01%
FOOD & BEVERAGES 1.71%
GAS & PIPELINE UTILITIES 2.81%
NETWORKING PRODUCTS 9.51%
TELECOMMUNICATIONS SERVICES 19.75%
SOFTWARE 4.03%
</TABLE>
* Based on total investment value of the Fund as of 4/30/99.
<PAGE>
Letter from Fund Management ORBITEX GROWTH FUND
- --------------------------------------------------------------------------------
- -----------------------------------------
Dear Shareholder:
- -----------------------------------------
In the 12 months ended April 30, 1999,
- -----------------------------------------
the Fund underperformed its benchmark,
- -----------------------------------------
the S&P 500-Registered Trademark- Index.
- -----------------------------------------
During that period, the Fund's total
- -----------------------------------------
return (Class A shares) was 9.07%, versus
- -----------------------------------------
a total return of 21.82% for the S&P 500
- -----------------------------------------
Index. The Fund seeks to achieve
- -----------------------------------------
long-term growth of capital through
- -----------------------------------------
investment in U.S. equity securities
- -----------------------------------------
having significant appreciation potential,
- -----------------------------------------
in the opinion of Orbitex Management, Inc.
- -----------------------------------------
<TABLE>
<CAPTION>
TOP 10 PORTFOLIO HOLDINGS*
<S> <C>
- -----------------------------------------
MCI WorldCom 9.54%
- -----------------------------------------
Citigroup Inc. 5.14%
- -----------------------------------------
Chevron Corp. 4.77%
- -----------------------------------------
Lowe's Companies, Inc. 4.32%
- -----------------------------------------
Intel Corp. 4.18%
- -----------------------------------------
Staples, Inc. 4.15%
- -----------------------------------------
Lucent Technologies, Inc. 4.11%
- -----------------------------------------
Home Depot, Inc. 4.09%
- -----------------------------------------
SBC Communications, Inc. 4.02%
- -----------------------------------------
Pfizer, Inc. 3.93%
- -----------------------------------------
</TABLE>
All holdings as of 4/30/99. Portfolio holdings subject to change and should not
be considered a recommendation to buy individual securities.
* Based on total investment value of the Fund as of 4/30/99.
INVESTMENT ENVIRONMENT The U.S. economy continued to show incredible strength.
Inflation is low. However, the strength of the economy is leading to fears that
the Federal Reserve Bank will raise interest rates. We believe that the economy
will cool enough to forestall any move by the Fed. The stock market had one of
the most dramatic shifts in leadership during the first months of 1999 with
cyclicals taking the lead from growth and technology stocks.
<PAGE>
- --------------------------------------------------------------------------------
PORTFOLIO POSITIONING The Fund uses proprietary techniques to find stocks that
we believe will have exceptional potential for our clients. These techniques
continued to show their value for our clients. Over the long run, the Fund will
focus on the twin drivers of the economy, technology and health care. In
addition, we are also positioned in key specialty and discount retailers, as
well as overweighting certain natural resource stocks. These sectors contributed
to the profits in the Fund. However, investments in the energy sector, including
oil service stocks, were a drag on performance.
INVESTMENT OUTLOOK The outlook remains bullish for U.S. equities with low
inflation, moderate earnings growth, and the possibility of lower interest
rates. There will be the inevitable short-term declines, but we view these as
buying opportunities in a long-term secular bull market.
Sincerely,
COURTNEY SMITH
PORTFOLIO MANAGER
[GRAPHIC]
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION*
<S> <C>
BROADCASTING 2.32%
COMPUTERS & BUSINESS EQUIPMENT 4.18%
COSMETICS & TOILETRIES 2.88%
SHORT-TERM INVESTMENTS 11.89%
DIVERSIFIED MANUFACTURING 3.60%
DRUGS & HEALTH CARE 3.93%
FINANCIAL SERVICES 8.51%
TELEPHONE 19.73%
FOOD & BEVERAGES 3.00%
INSURANCE 3.61%
TELECOMMUNICATIONS
EQUIPMENT 4.11%
INTERNATIONAL OIL 4.77%
OIL FIELD SERVICE 3.29%
SOFTWARE 11.61%
RETAIL 12.57%
</TABLE>
* Based on total investment value of the Fund as of 4/30/99.
<PAGE>
ORBITEX STRATEGIC NATURAL RESOURCES FUND 10
- --------------------------------------------------------------------------------
Schedule of Investments
April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Value
<S> <C> <C>
- -----------------------------------------------------------------
COMMON STOCKS--98.81%
ALUMINUM--4.25%
Alcoa, Inc. 1,500 $ 93,375
Reynolds Metals Co. 1,700 106,038
-------------
199,413
-------------
BUILDING CONSTRUCTION--1.01%
J. Ray McDermott SA (a) 1,500 47,250
-------------
CHEMICALS--4.55%
Cytec Industries, Inc. (a) 1,000 28,437
Du Pont (E.I.) de Nemours and Co. 1,000 70,625
Imperial Chemical Industries PLC, ADR 1,000 43,062
Potash Corp of Saskatchewan, Inc. 750 45,375
Union Carbide Corp. 500 25,938
-------------
213,437
-------------
ELECTRIC UTILITIES--1.49%
Duke Energy Corp. 1,250 70,000
-------------
ELECTRONICS--1.83%
Corning, Inc. 1,500 85,875
-------------
GAS & PIPELINE UTILITIES--4.29%
Consolidated Natural Gas Co. 1,000 59,500
Williams Companies, Inc. 3,000 141,750
-------------
201,250
-------------
GOLD--1.67%
Agnico-Eagle Mines, Ltd. 5,000 30,625
Homestake Mining Co. 5,000 47,813
-------------
78,438
-------------
INTERNATIONAL OIL--14.76%
Chevron Corp. 1,200 119,700
Mobil Corp. 750 78,563
Ocean Energy, Inc. (a) 4,000 37,250
Petro-Canada 1,500 20,625
Ranger Oil, Ltd. (a) 10,000 51,875
Royal Dutch Petroleum Co., NY Shares 1,750 102,703
Texaco, Inc. 1,000 62,750
USX-Marathon Group 5,000 156,250
YPF Sociedad Anonima, ADR 1,500 63,000
-------------
692,716
-------------
LIFE SCIENCES--1.93%
Monsanto Co. 2,000 90,500
-------------
MINING--5.66%
CONSOL Energy Inc. (a) 1,000 16,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX STRATEGIC NATURAL RESOURCES FUND 11
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Value
<S> <C> <C>
- -----------------------------------------------------------------
MINING (Continued)
Cyprus Amax Minerals Co. 3,000 $ 46,125
Freeport-McMoRan Copper & Gold, Inc.,
Class A 2,500 36,406
Newmont Mining Corp. 2,000 48,125
Placer Dome, Inc. 3,000 42,375
Rio Tinto Plc, ADR 500 34,062
Stillwater Mining Co. (a) 1,500 42,469
-------------
265,562
-------------
OIL--8.69%
Atlantic Richfield Co. 1,000 83,937
Canadian 88 Energy Corp. (a) 17,500 73,212
Exxon Corp. 2,250 186,891
Halliburton Co. 1,500 63,937
-------------
407,977
-------------
OIL & GAS DRILLING--5.12%
Ensco International, Inc. 2,000 37,125
Marine Drilling Co., Inc. (a) 2,500 42,969
Nabors Industries, Inc. (a) 2,000 41,125
Precision Drilling Corp. (a) 2,000 34,500
R&B Falcon Corp. (a) 4,000 40,000
Smith International, Inc. (a) 1,000 44,875
-------------
240,594
-------------
OIL & GAS EXPLORATION AND PRODUCTION--22.64%
Anadarko Petroleum Corp. 2,500 94,844
Apache Corp. 1,000 30,687
Benz Energy, Ltd. (a) 15,000 4,218
BP Amoco Plc, ADR 500 56,594
Burlington Resources, Inc. 2,000 92,125
Coastal Corp. 1,500 57,375
Columbia Energy Group 1,250 60,078
Enron Corp. 1,000 75,250
Enron Oil & Gas Company 3,000 57,000
Global Industries, Inc. (a) 4,000 49,250
Gulf Canada Resources, Ltd. 5,000 20,000
Nuevo Energy Co. (a) 4,000 63,500
Swift Energy Co. (a) 4,000 46,000
Total SA, ADR 600 40,800
Union Pacific Resources Group, Inc. 4,500 63,000
Valero Energy Corp. 2,000 44,625
Vastar Resources, Inc. 3,000 164,625
Vintage Petroleum, Inc. 4,000 43,000
-------------
1,062,971
-------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX STRATEGIC NATURAL RESOURCES FUND 12
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Value
<S> <C> <C>
- -----------------------------------------------------------------
OIL FIELD MACHINE & EQUIPMENT MANUFACTURING--1.23%
Cooper Cameron Corp. (a) 1,500 $ 57,938
-------------
OIL FIELD SERVICES--3.18%
BJ Services Co. (a) 2,500 66,875
Newpark Resources, Inc. (a) 2,000 18,375
Schlumberger Ltd. 1,000 63,875
-------------
149,125
-------------
PAPER & RELATED PRODUCTS--8.86%
Boise Cascade Corp. 2,500 100,625
Champion International Corp. 2,000 109,375
Fort James Corp. 2,500 95,000
Mead Corp. 1,000 41,812
Temple-Inland, Inc. 1,000 69,000
-------------
415,812
-------------
PETROLEUM SERVICES--4.69%
Callon Petroleum Co. (a) 3,000 32,813
McDermott International, Inc. 1,500 43,500
Phillips Petroleum Co. 1,250 63,281
Varco International, Inc. (a) 4,000 45,250
Veritas DGC, Inc. (a) 1,750 35,437
-------------
220,281
-------------
STEEL--2.96%
Bethlehem Steel Corp. (a) 6,000 54,750
Steel Dynamics, Inc. (a) 5,000 84,375
-------------
139,125
- -----------------------------------------------------------------
TOTAL COMMON STOCKS--(cost $4,178,803) 4,638,264
- -----------------------------------------------------------------
<CAPTION>
Principal
Amount
--------
<S> <C> <C>
SHORT TERM INVESTMENTS (cost $196,000)--4.18%
TIME DEPOSIT--4.18%
State Street Bank and Trust Co., 4.500%
due 5/3/1999 $196,000 196,000
- -----------------------------------------------------------------
TOTAL INVESTMENTS (cost $4,374,803)--102.99% 4,834,264
- -----------------------------------------------------------------
OTHER ASSETS AND LIABILITIES--(2.99)% (140,256)
- -----------------------------------------------------------------
NET ASSETS--100.00% $4,694,008
- -----------------------------------------------------------------
</TABLE>
(a) Denotes non-income producing security
ADR--American Depository Receipt
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX INFO-TECH & COMMUNICATIONS FUND 13
- --------------------------------------------------------------------------------
Schedule of Investments
April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Value
<S> <C> <C>
- -------------------------------------------------------------------
COMMON STOCKS--81.67%
BROADCASTING--4.37%
AT&T Corp.--Liberty Media Group, Class A
(a) 20,000 $ 1,277,500
CBS Corp. (a) 23,000 1,047,938
-------------
2,325,438
-------------
BUSINESS SERVICES--0.84%
Nokia Corp., ADR (a) 6,000 445,125
-------------
COMPUTERS & BUSINESS EQUIPMENT--5.63%
Computer Sciences Corp. 16,000 953,000
Equant NV, NY Shares (a) 13,000 1,160,250
Extreme Networks, Inc. (a) 16,000 887,000
-------------
3,000,250
-------------
ELECTRONICS--13.71%
Applied Materials, Inc. (a) 39,000 2,091,375
CIENA Corp. (a) 90,000 2,115,000
JDS Fitel, Inc. (a) 20,000 1,207,050
PMC-Sierra, Inc. (a) 6,000 575,250
Uniphase Corp. (a) 8,500 1,031,688
Vitesse Semiconductor Corp. (a) 6,000 277,875
-------------
7,298,238
-------------
FINANCIAL SERVICES--1.90%
MBNA Corp. 36,000 1,014,750
-------------
FOOD & BEVERAGES--1.62%
Seagram Company, Ltd. 15,000 860,625
-------------
GAS & PIPELINE UTILITIES--2.66%
Williams Companies, Inc. 30,000 1,417,500
-------------
NETWORKING PRODUCTS--9.00%
Cisco Systems, Inc. (a) 13,000 1,482,812
FORE Systems, Inc. (a) 82,500 2,784,375
Gemstar International Group Ltd (a) 5,000 526,875
-------------
4,794,062
-------------
SOFTWARE--3.82%
Evolving Systems, Inc. (a) 74,500 353,875
ISS Group, Inc. (a) 6,000 318,375
Marimba, Inc. (a) 500 30,375
PeopleSoft, Inc. (a) 70,000 958,125
Razorfish, Inc., Class A (a) 375 16,313
Sybase, Inc. (a) 40,000 310,000
USinternetworking, Inc. (a) 875 44,734
-------------
2,031,797
-------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX INFO-TECH & COMMUNICATIONS FUND 14
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Value
<S> <C> <C>
- -------------------------------------------------------------------
TELECOMMUNICATIONS SERVICES--18.70%
AirTouch Communications, Inc. (a) 5,000 $ 466,875
China Telecom Hong Kong, Ltd., ADR (a) 25,000 1,143,750
ICG Communications, Inc. (a) 72,000 1,588,500
IXC Communications, Inc. (a) 26,000 1,030,250
Metronet Communications Corp., Class B
(a) 2,000 111,000
NTL, Inc. (a) 14,000 1,067,500
Omnipoint Corp. (a) 86,200 1,530,050
QUALCOMM, Inc. 10,000 2,000,000
Scientific-Atlanta, Inc. 32,000 1,016,000
-------------
9,953,925
-------------
TELEPHONE--19.42%
ALLTEL Corp. 9,400 633,913
AT&T Corp., Series A 21,307 1,076,003
Intermedia Communications, Inc. (a) 78,000 2,510,625
MCI WorldCom, Inc. (a) 29,000 2,383,437
McLeodUSA, Inc. (a) 7,000 392,438
Powertel, Inc. (a) 30,600 665,550
SBC Communications, Inc. 13,000 728,000
Telecomunicacoes Brasileiras, ADR 10,000 781
WinStar Communications, Inc. (a) 40,000 1,945,000
-------------
10,335,747
- -------------------------------------------------------------------
TOTAL COMMON STOCKS--(cost $35,049,783) 43,477,457
- -------------------------------------------------------------------
PREFERRED STOCKS--(cost $917,274)--1.71%
TELEPHONE--1.71%
Telecomunicacoes Brasileiras, ADR 10,000 911,875
-------------
<CAPTION>
Principal
Amount
----------
<S> <C> <C>
SHORT TERM INVESTMENTS (cost $6,023,000)--11.31%
TIME DEPOSIT--11.31%
State Street Bank and Trust Co., 4.500%
due 5/3/1999 $6,023,000 6,023,000
- -------------------------------------------------------------------
TOTAL INVESTMENTS (COST $41,990,057)--94.69% 50,412,332
OTHER ASSETS AND LIABILITIES--5.31% 2,826,806
- -------------------------------------------------------------------
NET ASSETS--100.00% $53,239,138
- -------------------------------------------------------------------
</TABLE>
(a) Denotes non-income producing security
ADR--American Depository Receipt
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX GROWTH FUND 15
- --------------------------------------------------------------------------------
Schedule of Investments
April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Value
<S> <C> <C>
- --------------------------------------------------------------------
COMMON STOCKS--87.39%
BROADCASTING--2.30%
United States Satellite Broadcasting
Company, Inc., Class A (a) 1,900 $ 33,963
-------------
COMPUTERS & BUSINESS EQUIPMENT--4.15%
Intel Corp. 1,000 61,187
-------------
COSMETICS & TOILETRIES--2.86%
Procter & Gamble Co. 450 42,216
-------------
DIVERSIFIED MANUFACTURING--3.58%
General Electric Co. 500 52,750
-------------
DRUGS & HEALTH CARE--3.90%
Pfizer, Inc. 500 57,531
-------------
FINANCIAL SERVICES--8.44%
Citigroup, Inc. 1,000 75,250
Hambrecht & Quist Group (a) 1,400 49,350
-------------
124,600
-------------
FOOD & BEVERAGES--2.97%
Anheuser-Busch Companies, Inc. 600 43,875
-------------
INSURANCE--3.58%
American International Group, Inc. 450 52,847
-------------
INTERNATIONAL OIL--4.73%
Chevron Corp. 700 69,825
-------------
OIL FIELD SERVICE--3.26%
BJ Services Co. (a) 1,800 48,150
-------------
RETAIL--12.47%
Home Depot, Inc. 1,000 59,937
Lowe's Companies, Inc. 1,200 63,300
Staples, Inc. (a) 2,025 60,750
-------------
183,987
-------------
SOFTWARE--11.51%
America Online, Inc 400 57,100
Electronic Arts, Inc. (a) 900 45,731
Microsoft Corp. (a) 700 56,919
pcOrder.com, Inc., Class A (a) 50 3,091
Ziff-Davis, Inc. (a) 200 7,050
-------------
169,891
-------------
TELECOMMUNICATIONS EQUIPMENT--4.07%
Lucent Technologies, Inc. 1,000 60,125
-------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX GROWTH FUND 16
- --------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Market Value
<S> <C> <C>
- --------------------------------------------------------------------
TELEPHONE--19.57%
AT&T Corp. 300 $ 15,150
MCI WorldCom, Inc. (a) 1,700 139,719
Qwest Communications International, Inc.
(a) 400 34,175
SBC Communications, Inc. 1,050 58,800
Sprint Corp. 400 41,025
-------------
288,869
- --------------------------------------------------------------------
TOTAL COMMON STOCKS--(Cost $1,245,486) 1,289,816
- --------------------------------------------------------------------
<CAPTION>
Principal
Amount
----------
<S> <C> <C>
SHORT TERM INVESTMENTS (COST $174,000)--11.79%
TIME DEPOSIT--11.79%
State Street Bank and Trust Co., 4.500%
due 5/3/1999 $ 174,000 174,000
- --------------------------------------------------------------------
TOTAL INVESTMENTS (Cost $1,419,486)--99.18% 1,463,816
- --------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES--0.82% 12,047
- --------------------------------------------------------------------
NET ASSETS--100.00% $1,475,863
- --------------------------------------------------------------------
</TABLE>
(a) Denotes non-income producing security.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
17
ORBITEX GROUP OF FUNDS
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strategic Natural Info-Tech &
Resources Fund Communications Fund Growth Fund
------------------ -------------------- ------------
<S> <C> <C> <C>
ASSETS
Investments in securities, at value
(Note 2)......................... $4,638,264 $44,389,332 $1,289,816
Short term investments (Note 2).... 196,000 6,023,000 174,000
- ---------------------------------------------------------------------------------------------
Total investments.................. 4,834,264 50,412,332 1,463,816
- ---------------------------------------------------------------------------------------------
Cash............................... 330 585 443
Foreign currency, at value......... 38 -- --
Receivable for securities sold..... 344,363 3,099,481 --
Interest and dividends
receivable....................... 1,343 14,826 380
Receivable for fund shares sold.... 16,419 1,384,139 195
Receivable due from advisor (Note
3)............................... 39,336 48,865 40,378
Deferred organizational expenses
(Note 2)......................... 13,121 13,111 13,111
Other assets....................... 5,276 2,165 2,163
- ---------------------------------------------------------------------------------------------
TOTAL ASSETS....................... 5,254,490 54,975,504 1,520,486
- ---------------------------------------------------------------------------------------------
LIABILITIES
Payable for securities purchased... 509,548 1,560,535 --
Payable for fund shares redeemed... -- 30,445 --
Payable for professional fees...... 24,863 24,863 24,863
Payable for custodian fees......... 5,490 49,837 2,572
Payable for distribution fees...... 3,436 37,443 1,374
Payable for Trustee fees (Note
3)............................... 1,251 1,251 1,251
Accrued expenses and other
liabilities...................... 15,894 31,992 14,563
- ---------------------------------------------------------------------------------------------
TOTAL LIABILITIES.................. 560,482 1,736,366 44,623
- ---------------------------------------------------------------------------------------------
NET ASSETS......................... $4,694,008 $53,239,138 $1,475,863
- ---------------------------------------------------------------------------------------------
NET ASSETS
Paid-in capital.................... $4,837,542 $40,005,073 $1,269,888
Undistributed net investment income
(loss)........................... (198) -- --
Accumulated net realized gain
(loss) on investments............ (602,798) 4,811,790 161,645
Net unrealized appreciation
(depreciation) on investments.... 459,462 8,422,275 44,330
- ---------------------------------------------------------------------------------------------
NET ASSETS......................... $4,694,008 $53,239,138 $1,475,863
- ---------------------------------------------------------------------------------------------
CLASS A SHARES:
Net assets......................... $4,286,408 $34,334,869 $1,421,648
Net asset value per share (based on
shares of beneficial interest
outstanding, par value $.01 per
share)........................... 14.92 30.62 18.66
Maximum sales charge (Note 1)...... 5.75% 5.75% 5.75%
- ---------------------------------------------------------------------------------------------
Offering price per share........... $ 15.83 $ 32.49 $ 19.80
- ---------------------------------------------------------------------------------------------
Total shares outstanding at end of
period........................... 287,199 1,121,237 76,173
- ---------------------------------------------------------------------------------------------
CLASS B SHARES:
Net assets......................... $ 407,600 $18,904,269 $ 54,215
Net asset value and offering price
per share (based on shares of
beneficial interest outstanding,
par value $.01 per share)........ $ 14.98 $ 30.48 $ 18.61
- ---------------------------------------------------------------------------------------------
Total shares outstanding at end of
period........................... 27,210 620,240 2,913
- ---------------------------------------------------------------------------------------------
INVESTMENTS, AT COST............... $4,374,803 $41,990,057 $1,419,486
- ---------------------------------------------------------------------------------------------
FOREIGN CURRENCY, AT COST.......... $ 37 $ -- $ --
- ---------------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
18
ORBITEX GROUP OF FUNDS
- --------------------------------------------------------------------------------
Statements of Operations
For the Year Ended April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Info-Tech &
Strategic Natural Communications
Resources Fund Fund Growth Fund
------------------ --------------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME
Interest income.................... $ 20,863 $ 165,805 $ 5,041
Dividend income.................... 59,590 55,574 5,997
Foreign taxes withheld............. (924) (1,863) (26)
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME............ 79,529 219,516 11,012
- ----------------------------------------------------------------------------------------
EXPENSES
Administration fee (Note 3)........ 62,858 62,711 62,711
Custodian fee (Note 3)............. 62,781 153,056 51,268
Transfer agent fee................. 48,662 72,375 45,755
Professional fees.................. 47,487 48,403 48,387
Investment advisor fee (Note 3).... 46,098 211,768 8,089
Registration fees.................. 24,430 35,014 23,811
Distribution fees (Note 3):
Class A Shares................... 14,495 53,772 4,257
Class B Shares................... 641 34,918 143
Trustees' fee (Note 3)............. 4,117 4,117 4,117
Amortization of organizational
expenses (Note 2)................ 3,770 3,770 3,770
Miscellaneous expense.............. 7,528 16,970 4,921
- ----------------------------------------------------------------------------------------
Total expenses before waivers,
reimbursements and custodial
credits.......................... 322,867 696,874 257,229
Expenses waived and reimbursed
(Note 3)......................... (241,943) (334,057) (236,419)
Fees reduced by credits allowed by
the custodian.................... (864) (792) (570)
- ----------------------------------------------------------------------------------------
NET EXPENSES....................... 80,060 362,025 20,240
- ----------------------------------------------------------------------------------------
NET INVESTMENT LOSS................ (531) (142,509) (9,228)
- ----------------------------------------------------------------------------------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain (loss) on:
Investments...................... (285,496) 5,050,603 170,778
Written options.................. (33,980) 91,757 545
- ----------------------------------------------------------------------------------------
Total net realized gain (loss)..... (319,476) 5,142,360 171,323
- ----------------------------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation) on
investment transactions and
foreign currency................. 67,879 8,116,172 (14,256)
- ----------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN
(LOSS)........................... (251,597) 13,258,532 157,067
- ----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM
OPERATIONS....................... $(252,128) $13,116,023 $ 147,839
- ----------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
19
ORBITEX GROUP OF FUNDS
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
For the Year Ended April 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Strategic Natural Info-Tech &
Resources Communications
Fund Fund Growth Fund
------------------ --------------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment loss................ $ (531) $ (142,509) $ (9,228)
Net realized gain (loss) on
investment and foreign currency
related transactions............. (319,476) 5,142,360 171,323
Net change in unrealized
appreciation (depreciation) on
investment transactions.......... 67,879 8,116,172 (14,256)
- ----------------------------------------------------------------------------------------
Net increase (decrease) in net
assets resulting from
operations....................... (252,128) 13,116,023 147,839
- ----------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income:
Class A.......................... (107,147) -- (12,649)
Class B.......................... (1,462) -- (425)
Net realized gains................. (160) (157,965) (43,262)
- ----------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders.................. (108,769) (157,965) (56,336)
- ----------------------------------------------------------------------------------------
Fund Share Transactions (Note 6)... (642,929) 37,840,738 493,720
- ----------------------------------------------------------------------------------------
Total Increase (Decrease) in Net
Assets........................... (1,003,826) 50,798,796 585,223
- ----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year.................. 5,697,834 2,440,342 890,640
- ----------------------------------------------------------------------------------------
End of year........................ $ 4,694,008 $53,239,138 $1,475,863
- ----------------------------------------------------------------------------------------
Undistributed net investment income
(loss) at end of year............ $ (198) $ -- $ --
- ----------------------------------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
20
ORBITEX GROUP OF FUNDS
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
For the Period Ended April 30, 1998*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Info-Tech &
Strategic Natural Communications
Resources Fund Fund Growth Fund
------------------ --------------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)....... $ 127,318 $ (5,210) $ 14,172
Net realized gain (loss) on
investment and foreign currency
related transactions............. (291,457) (30,284) 41,526
Net change in unrealized
appreciation (depreciation) on
investment transactions.......... 391,583 306,103 58,586
- ----------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations........ 227,444 270,609 114,284
- ----------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS FROM:
Net investment income.............. (7,147) -- --
Distributions in excess of net
realized gains................... (6,916) -- --
- ----------------------------------------------------------------------------------------
Total dividends and distributions
to shareholders.................. (14,063) -- --
- ----------------------------------------------------------------------------------------
Fund Share Transactions (Note 6)... 5,464,453 2,149,733 756,356
- ----------------------------------------------------------------------------------------
Total Increase in Net Assets....... 5,677,834 2,420,342 870,640
- ----------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period................ 20,000 20,000 20,000
- ----------------------------------------------------------------------------------------
End of period...................... $5,697,834 $2,440,342 $890,640
- ----------------------------------------------------------------------------------------
Undistributed net investment income
at end of period................. $ 119,210 $ -- $ 13,074
- ----------------------------------------------------------------------------------------
</TABLE>
* The commencement of investment operations was October 23, 1997 for
Strategic Natural Resources Fund and October 22, 1997 for Info-Tech &
Communications Fund and Growth Fund.
- --------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
21
ORBITEX STRATEGIC NATURAL RESOURCES FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class A Shares Class A Shares Class B Shares
------------------- ------------------- ----------------------
For the Year For the Period For the Period
Ended Ended Ended
April 30, 1999 (b) April 30, 1998 (a) April 30, 1999 (a)(b)
------------------- ------------------- ----------------------
<S> <C> <C> <C>
Net asset value, beginning of
period........................... $ 16.54 $ 15.00 $ 12.22
------- ------- -------
Income (Loss) from investment
operations:
Net investment gain (loss)....... 0.00 0.38(e) (0.05)
Net realized and unrealized gain
(loss) on investments and
foreign currency related
transactions................... (1.25) 1.22 3.21(g)
------- ------- -------
Total income (loss) from
investment operations........ (1.25) 1.60 3.16
------- ------- -------
Less distributions from net
investment income................ (0.37) (0.03) (0.40)
Less distributions from net
realized gains................... 0.00(f) (0.03) 0.00(f)
------- ------- -------
Total distributions from net
investment income and net
realized gains................. (0.37) (0.06) (0.40)
------- ------- -------
Net asset value, end of period..... $ 14.92 $ 16.54 $ 14.98
------- ------- -------
------- ------- -------
Total Return(c).................... (6.86)% 10.74% 26.92%
Ratios and Supplemental Data:
Net assets, end of period (in
000's)......................... $ 4,286 $ 5,698 $ 408
Ratio of expenses to average net
assets(d)...................... 2.19% 2.45% 2.40%
Ratio of net expenses to average
net assets (net of custodial
credits)(d).................... 2.17% 2.40% 2.40%
Ratio of total expenses to
average net assets before
waivers, reimbursements and
custodial credits(d)........... 8.76% 9.27% 8.49%
Ratio of net investment income
(loss) to average net
assets(d)...................... 0.00% 6.12% (e) (0.66)%
Portfolio turnover rate.......... 921% 519% 921%
</TABLE>
- ---------------
(a) The commencement of investment operations was October 23, 1997 and
September 21, 1998 for Strategic Natural Resources Fund Class A Shares and
Class B Shares, respectively.
(b) Per share numbers have been calculated using the average shares method,
which more appropriately presents the per share data for the period.
(c) Total returns are historical and assume changes in share price,
reinvestment of dividends and capital gains distributions, and assume no
sales charge. Had the Adviser, Administrator, Custodian and Distributor not
absorbed a portion of the expenses, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(d) Annualized for periods less than one year.
(e) Net investment income per share and the net investment income ratio would
have been lower without a certain investment strategy followed by the
Adviser during the current fiscal year.
(f) Amount represents less than $0.01 per share.
(g) The amount shown may not accord with the change in aggregate gains and
losses of portfolio securities due to the timing of sales and redemptions
of Fund shares.
- --------------------------------------------------------------------------------
<PAGE>
22
ORBITEX INFO-TECH & COMMUNICATIONS FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class A Shares Class A Shares Class B Shares
--------------- ------------------- -------------------
For the Year For the Period For the Period
Ended Ended Ended
April 30, 1999 April 30, 1998 (a) April 30, 1999 (a)
--------------- ------------------- -------------------
<S> <C> <C> <C>
Net asset value, beginning of
period........................... $ 19.62 $ 15.00 $ 18.23
--------------- ------- --------
Income (Loss) from investment
operations:
Net investment loss.............. (0.08) 0.00 (0.08)
Net realized and unrealized gain
on investments and foreign
currency related
transactions................... 11.26 4.62 12.51
--------------- ------- --------
Total income from investment
operations..................... 11.18 4.62 12.43
--------------- ------- --------
Less distributions from net
investment income................ -- -- --
Less distributions from net
realized gains................... (0.18) -- (0.18)
--------------- ------- --------
Total distributions from net
investment income and net
realized gains................. (0.18) -- (0.18)
--------------- ------- --------
Net asset value, end of period..... $ 30.62 $ 19.62 $ 30.48
--------------- ------- --------
--------------- ------- --------
Total Return(b).................... 57.43% 30.80% 68.67%
Ratios and Supplemental Data:
Net assets, end of period (in
000's)......................... $ 34,335 $ 2,440 $ 18,904
Ratio of expenses to average net
assets(c)...................... 2.07% 2.88% 2.41%
Ratio of net expenses to average
net assets (net of custodial
credits)(c).................... 2.07% 2.40% 2.40%
Ratio of total expenses to
average net assets before
waivers, reimbursements and
custodial credits(c)........... 4.04% 39.06% 4.41%
Ratio of net investment loss to
average net assets(c).......... (0.70)% (1.27)% (1.40)%
Portfolio turnover rate.......... 360% 76% 360%
</TABLE>
- ---------------
(a) The commencement of investment operations was October 22, 1997 and
September 16, 1998 for Info-Tech & Communications Fund Class A Shares and
Class B Shares, respectively.
(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 Adviser, Administrator, Custodian and Distributor not
absorbed a portion of the expenses, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(c) Annualized for periods less than one year.
- --------------------------------------------------------------------------------
<PAGE>
23
ORBITEX GROWTH FUND
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class A Shares Class A Shares Class B Shares
------------------- ------------------- ---------------------
For the Year For the Period For the Period
Ended Ended Ended
April 30, 1999 (b) April 30, 1998 (a) April 30, 1999(a)(b)
------------------- ------------------- ---------------------
<S> <C> <C> <C>
Net asset value, beginning of
period........................... $ 17.93 $ 15.00 $ 16.46
------- ------- -------
Income (Loss) from investment
operations:
Net investment income (loss)..... (0.15) 0.26(e) (0.12)
Net realized and unrealized gain
on investments and foreign
currency related
transactions................... 1.70 2.67 3.11
------- ------- -------
Total income from investment
operations..................... 1.55 2.93 2.99
------- ------- -------
Less distributions from net
investment income................ (0.19) -- (0.21)
Less distributions from net
realized gains................... (0.63) -- (0.63)
------- ------- -------
Total distributions from net
investment income and net
realized gains................. (0.82) -- (0.84)
------- ------- -------
Net asset value, end of period..... $ 18.66 $ 17.93 $ 18.61
------- ------- -------
------- ------- -------
Total Return(c).................... 9.07% 19.53% 18.61%
Ratios and Supplemental Data:
Net assets, end of period (in
000's)......................... $ 1,422 $ 891 $ 54
Ratio of expenses to average net
assets(d)...................... 1.93% 2.11% 2.03%
Ratio of net expenses to average
net assets (net of custodial
credits)(d).................... 1.88% 1.60% 2.00%
Ratio of total expenses to
average net assets before
waivers, reimbursements and
custodial credits(d)........... 23.92% 50.13% 18.75%
Ratio of net investment income
(loss) to average net
assets(d)...................... (0.85)% 4.41% (e) (1.05)%
Portfolio turnover rate.......... 957% 448% 957%
</TABLE>
- ---------------
(a) The commencement of investment operations was October 22, 1997 and
September 16, 1998 for Growth Fund Class A Shares and Class B Shares,
respectively.
(b) Per share numbers have been calculated using the average shares method,
which more appropriately presents the per share data for the period.
(c) Total returns are historical and assume changes in share price,
reinvestment of dividends and capital gains distributions, and assume no
sales charge. Had the Adviser, Administrator, Custodian and Distributor not
absorbed a portion of the expenses, total returns would have been lower.
Total returns for periods less than one year are not annualized.
(d) Annualized for periods less than one year.
(e) Net investment income per share and the net investment income ratio would
have been lower without a certain investment strategy followed by the
Adviser during the current fiscal year.
- --------------------------------------------------------------------------------
<PAGE>
ORBITEX GROUP OF FUNDS 24
- --------------------------------------------------------------------------------
Notes to Financial Statements
April 30, 1999
- ------------------------------------------
- ------------------------------------------
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 and is
authorized to issue an unlimited number of shares. The Trust is comprised of
three funds (collectively the "Funds" and each individually a "Fund") as
follows: Strategic Natural Resources Fund, Info-Tech & Communications Fund and
Growth Fund. Each Fund operates as a diversified investment company. The Funds
offer both Class A and Class B Shares. Class A Shares are offered at net asset
value plus a maximum sales load of 5.75%. Class B Shares are offered subject to
a contingent deferred sales charge and will automatically convert to Class A
Shares after seven years.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Trust in the preparation of its financial statements:
The preparation of financial statements in accordance with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts and disclosures in the financial statements. Actual
results could differ from those estimates.
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, the last available bid price. Long-term debt obligations are valued at
the mean of representative quoted bid and asked prices for such securities or,
if such prices are not available, at prices for securities of comparable
maturity, quality and type; however, when the Adviser or Sub-Adviser deems it
appropriate, prices obtained from an independent pricing service will be used.
Short-term debt investments with maturities less than 60 days 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.
Securities for which current market quotations are not readily available or for
which quotations are not deemed by Orbitex Management, Inc. (the "Adviser") to
be representative of market values are valued at fair value as determined in
good faith by or under the direction of the Trustees.
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 TRANSLATIONS
The accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in a foreign currency,
and 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 rates established at the approximate time of the trade.
Net realized gains and losses on foreign currency transactions represent net
gains and losses from currency realized between the trade and settlement dates
on securities transactions and the difference between income accrued and income
received. 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.
<PAGE>
ORBITEX GROUP OF FUNDS 25
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 1999
- ------------------------------------------
- ------------------------------------------
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 non-reclaimable
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. Interest income is recorded on the accrual basis.
Market discount, original issue discount and premiums are amortized on a yield
to maturity basis. The value of additional securities received as interest or
dividend payments is recorded as income and as the cost basis of such
securities.
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. Each Fund's income, expenses (other than the class specific distribution
fees) and realized and unrealized gains and losses are allocated proportionally
each day between the classes based upon the relative net assets of each class.
DISTRIBUTIONS TO SHAREHOLDERS
Income will normally be declared and distributed annually for each of the 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. These differences are primarily due to differing treatments of
income and gains on various investment securities held by the Funds, timing
differences and differing characterization of distributions made by each Fund.
DEFERRED ORGANIZATIONAL COSTS
Organizational expenses have been deferred and are being amortized over a period
of five years commencing with operations. The Adviser 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.
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 maturity 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 Trustees have established criteria to evaluate the creditworthiness of
parties with which the Funds may enter into repurchase agreements.
<PAGE>
ORBITEX GROUP OF FUNDS 26
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 1999
- ------------------------------------------
- ------------------------------------------
OPTIONS
Each Fund may enter into options contracts. An option contract is a contract in
which the writer of the option grants the buyer of the option the right to
purchase from (call option), or sell to (put option), the writer a designated
instrument at a specified price within a specified period of time. Certain
options, including options on indices, will require cash settlement by the Fund
if the option is exercised.
If the Fund writes an option and the option expires unexercised, the Fund will
realize income, in the form of a capital gain, to the extent of the amount
received for the option (the "premium"). If the Fund elects to close out the
option it would recognize a gain or loss based on the difference between the
cost of closing the option and the initial premium received. If the Fund
purchased an option and allows the option to expire, it would realize a loss to
the extent of the premium paid. If the Fund elects to close out the option, it
would recognize a gain or loss equal to the difference between the cost of
acquiring the option and the amount realized upon the sale of the option.
The gain or loss recognized by the Fund upon the exercise of a written call or
purchased put option is adjusted for the amount of the option premium. If a
written put or purchased call option is exercised, the Fund's cost basis of the
acquired security or currency would be the exercise price adjusted for the
amount of the option premium.
The liability representing the Fund's obligation under an exchange traded
written option or investment in a purchased option is valued at the last sale
price or, in the absence of a sale, the closing bid price or at the most recent
asked price (bid for purchased options) if no bid and asked price are available.
Over-the-counter written or purchased options are valued using dealer supplied
quotations.
When the Fund writes a covered call option, the Fund foregoes, in exchange for
the premium, the opportunity to profit during the option period from an increase
in the market value of the underlying security or currency above the exercise
price. When the Fund writes a put option it accepts the risk of a decline in the
market value of the underlying security or currency below the exercise price.
Over-the-counter options have the risk of the potential inability of
counterparties to meet the terms of their contracts. The Fund's maximum exposure
to purchased options is limited to the premium initially paid. In addition,
certain risks may arise upon entering into option contracts including the risk
that an illiquid secondary market will limit the Fund's ability to close out an
option contract prior to the expiration date and, that a change in the value of
the option contract may not correlate exactly with changes in the value of the
securities or currencies hedged.
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 Strategic Natural Resources Fund and 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 Adviser. As
compensation for the services rendered, facilities furnished, and expenses borne
by the Adviser, the Funds will pay the Adviser a
<PAGE>
ORBITEX GROUP OF FUNDS 27
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 1999
- ------------------------------------------
- ------------------------------------------
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
and 0.75% for the Growth Fund. The Advisory Agreement also provides that the
Adviser may retain Sub-Advisers at the Adviser's own cost and expense, for the
purpose of managing the investment of the assets of one or more Funds of the
Trust.
Through September 21, 1998 for the Strategic Natural Resources Fund and
September 16, 1998 for the Info-Tech & Communications and Growth Funds, the
Adviser had agreed to waive or limit its fees and to pay certain operating
expenses to the extent necessary to limit total fund operating expenses, net of
waivers and custodial credits, to an annualized rate of 2.40%, 2.40%, and 1.60%,
for Class A Shares of the Strategic Natural Resources Fund, Info-Tech &
Communications Fund, and Growth Fund, respectively, subject to possible
reimbursement by the Funds if such reimbursement can be achieved within the
foregoing expense limits. Effective September 21, 1998 for the Strategic Natural
Resources Fund and September 16, 1998 for the Info-Tech & Communications and
Growth Funds, the Adviser changed the expense limit on Class A Shares of the
Strategic Natural Resources Fund, Info-Tech & Communications Fund, and Growth
Fund, to 2.00% annually of the Funds' relative average daily net assets.
The Adviser has agreed to waive or limit its fees and to pay certain operating
expenses to the extent necessary to limit total fund operating expenses, net of
waivers and custodial credits, to an annualized rate of 2.40%, 2.40%, and 2.00%,
for Class B Shares of the Strategic Natural Resources Fund, Info-Tech &
Communications Fund, and Growth Fund, respectively, subject to possible
reimbursement by the Funds if such reimbursement can be achieved within the
foregoing expense limits.
The waivers for the Adviser's fee for the year ended April 30, 1999 amounted to
$46,098, $211,768, and $8,089 for Strategic Natural Resources Fund, Info-Tech &
Communications Fund and Growth Fund, respectively. The reimbursements for the
year ended April 30, 1999 amounted to $162,323, $15,471 and $205,802 for
Strategic Natural Resources Fund, Info-Tech & Communications Fund and Growth
Fund, respectively.
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 0.10% of the
first $100 million of the Funds average daily net assets, plus 0.08% of the next
$100 million of the Funds average daily net assets, plus 0.06% of the Funds
average daily net assets in excess of $200 million, subject to certain minimum
requirements. State Street agreed to waive certain fees for the year ended April
30, 1999, which amounted to $18,386, $18,128, and $18,128 for Strategic Natural
Resources Fund, Info-Tech & Communications Fund and Growth Fund, respectively.
CUSTODIAN FEES
State Street also serves as the Trust's custodian, including holding all
portfolio securities and cash assets of the Trust and providing accounting
services which includes daily valuation of the shares of each Fund. For its
services State Street receives an annual custody and accounting fee which is
paid monthly.
The Funds have entered into arrangements with its' custodian whereby credits
realized as a result of uninvested cash balances were used to reduce a portion
of the Funds' expenses. During the year ended April 30, 1999, fees reduced by
credits allowed by the custodian amounted to $864, $792 and $570 for Strategic
Natural Resources Fund, Info-Tech & Communications Fund and Growth Fund,
respectively.
<PAGE>
ORBITEX GROUP OF FUNDS 28
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 1999
- ------------------------------------------
- ------------------------------------------
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 for Class A Shares provides for payment of a fee to the
Distributor at an annualized rate of 0.40% of the average daily net assets of
the Class A Shares of each Fund. The Rule 12b-1 Plan and Agreement for Class B
Shares provides for payment of a fee to the Distributor at an annualized rate of
1.00% of the average daily net assets of the Class B Shares of each Fund. During
the fiscal year ended April 30, 1999 distribution fees were waived which
amounted to $15,136, $88,690, and $4,400 for Strategic Natural Resources Fund,
Info-Tech & Communications Fund and Growth Fund, respectively.
For the year ended April 30, 1999, the Funds have been informed that the
Distributor received sales charges in the amount of $976, $3,771 and $229 from
Strategic Natural Resources Fund, Info-Tech & Communications Fund and Growth
Fund, respectively.
TRUSTEES FEES
The Funds pay no compensation to their Trustees who are employees of the Adviser
or Sub-Advisers. Trustees who are not Adviser or Sub-Adviser employees receive
an annual fee of $5,000.
4. AGGREGATE UNREALIZED APPRECIATION AND DEPRECIATION
The identified cost of investments in securities owned by each Fund for federal
income tax purposes, and their respective gross unrealized appreciation and
depreciation at April 30, 1999, were as follows:
<TABLE>
<CAPTION>
GROSS GROSS
IDENTIFIED UNREALIZED UNREALIZED NET UNREALIZED
COST APPRECIATION DEPRECIATION APPRECIATION
----------- ------------- ------------- ---------------
<S> <C> <C> <C> <C>
Strategic Natural Resources
Fund........................ $ 4,425,602 $ 433,962 $ (25,300) $ 408,662
Info-Tech & Communications
Fund........................ 42,068,721 9,462,445 (1,118,834) 8,343,611
Growth Fund................... 1,425,609 61,581 (23,374) 38,207
</TABLE>
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 year ended April
30, 1999, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
----------- -----------
<S> <C> <C>
Strategic Natural Resources Fund........ $31,075,570 $31,416,769
Info-Tech & Communications Fund......... 81,671,486 52,201,320
Growth Fund............................. 9,215,524 8,987,678
</TABLE>
During the year ended April 30, 1999, the following options were written:
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS PREMIUM
----------- -----------
<S> <C> <C>
STRATEGIC NATURAL RESOURCES FUND:
Balance as of April 30, 1998.......... -- $ --
Written............................... 266 33,981
Closed and Expired.................... 266 (33,981)
----------- -----------
Balance as of April 30, 1999.......... -- $ --
----------- -----------
----------- -----------
</TABLE>
<PAGE>
ORBITEX GROUP OF FUNDS 29
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 1999
- ------------------------------------------
- ------------------------------------------
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS PREMIUM
----------- -----------
<S> <C> <C>
INFO-TECH & COMMUNICATIONS FUND:
Balance as of April 30, 1998.......... -- $ --
Written............................... 80 91,757
Closed and Expired.................... 80 (91,757)
----------- -----------
Balance as of April 30, 1999.......... -- $ --
----------- -----------
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS PREMIUM
----------- -----------
<S> <C> <C>
GROWTH FUND:
Balance as of April 30, 1998.......... -- $ --
Written............................... 14 545
Closed and Expired.................... 14 (545)
----------- -----------
Balance as of April 30, 1999.......... -- $ --
----------- -----------
----------- -----------
</TABLE>
6. SHAREHOLDER'S TRANSACTIONS
Following is a summary of shareholder transactions for each Fund:
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 1999 APRIL 30, 1998*
--------------------- ---------------------
SHARES DOLLARS SHARES DOLLARS
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
STRATEGIC NATURAL RESOURCES
CLASS A SHARES:
Shares sold............... 131,711 $ 1,760,548 709,678 $10,833,321
Shares issued to
shareholders in
reinvestment............ 6,077 69,465 713 12,051
Shares redeemed........... (195,053) (2,799,209) (367,260) (5,380,919)
-------- ----------- -------- -----------
Net increase (decrease)... (57,265) $ (969,196) 343,131 $ 5,464,453
-------- ----------- -------- -----------
-------- ----------- -------- -----------
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 1999
**
----------------
SHARES DOLLARS
------ --------
<S> <C> <C>
CLASS B SHARES:
Shares sold........................... 28,871 $345,007
Shares issued to shareholders in
reinvestment........................ 129 1,461
Shares redeemed....................... (1,790) (20,201)
------ --------
Net increase.......................... 27,210 $326,267
------ --------
------ --------
</TABLE>
<PAGE>
ORBITEX GROUP OF FUNDS 30
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 1999
- ------------------------------------------
- ------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 1999 APRIL 30, 1998*
----------------------- --------------------
SHARES DOLLARS SHARES DOLLARS
---------- ----------- -------- ----------
<S> <C> <C> <C> <C>
INFO-TECH AND COMMUNICATIONS
CLASS A SHARES:
Shares sold................... 1,256,122 $27,412,569 124,204 $2,171,752
Shares issued to shareholders
in reinvestment............. 5,899 123,229 -- --
Shares redeemed............... (265,173) (5,107,233) (1,148) (22,019)
---------- ----------- -------- ----------
Net increase................ 996,848 $22,428,565 123,056 $2,149,733
---------- ----------- -------- ----------
---------- ----------- -------- ----------
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 1999 **
------------------------
SHARES DOLLARS
----------- -----------
<S> <C> <C>
CLASS B SHARES:
Shares sold............................. 627,210 $15,591,987
Shares issued to shareholders in
reinvestment.......................... 1,194 24,861
Shares redeemed......................... (8,164) (204,675)
----------- -----------
Net increase.......................... 620,240 $15,412,173
----------- -----------
----------- -----------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 1999 APRIL 30, 1998*
------------------ ----------------
SHARES DOLLARS SHARES DOLLARS
------- --------- ------ --------
<S> <C> <C> <C> <C>
GROWTH
CLASS A SHARES:
Shares sold............... 50,700 $ 868,063 48,341 $756,356
Shares issued to
shareholders in
reinvestment............ 2,764 47,377 -- --
Shares redeemed........... (26,965) (473,892) -- --
------- --------- ------ --------
Net increase............ 26,499 $ 441,548 48,341 $756,356
------- --------- ------ --------
------- --------- ------ --------
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 1999
**
---------------
SHARES DOLLARS
------ -------
<S> <C> <C>
CLASS B SHARES:
Shares sold........................... 3,387 $61,207
Shares issued to shareholders in
reinvestment........................ 46 781
Shares redeemed....................... (520 ) (9,816)
------ -------
Net increase........................ 2,913 $52,172
------ -------
------ -------
</TABLE>
*The commencement of investment operations was October 23, 1997 for Strategic
Natural Resources Fund Class A Shares, October 22, 1997 for Info-Tech &
Communications Fund Class A Shares and October 22, 1997 for Growth Fund Class A
Shares.
**The commencement of investment operations was September 21, 1998 for Strategic
Natural Resources Fund Class B Shares, September 16, 1998 for Info-Tech &
Communications Fund Class B Shares and September 16, 1998 for Growth Fund Class
B Shares.
<PAGE>
ORBITEX GROUP OF FUNDS 31
- --------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 1999
- ------------------------------------------
- ------------------------------------------
7. 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:
<TABLE>
<CAPTION>
5% OR GREATER SHAREHOLDERS
----------------------------------------
NUMBER OF
SHAREHOLDERS % OF FUND HELD
-------------------- -----------------
CLASS A CLASS B CLASS A CLASS B
----------- ------- ------- -------
<S> <C> <C> <C> <C>
Strategic Natural Resources
Fund........................ 2 7 33% 59%
Info-Tech & Communications
Fund........................ 1 1 10% 5%
Growth Fund................... 5 5 76% 99%
</TABLE>
There were no affiliated shareholders as of April 30, 1999.
8. CAPITAL LOSS CARRYFORWARD
At April 30, 1999, the Strategic Natural Resources Fund had available for
federal income tax purposes unused capital losses of $544,733, expiring in the
Year 2007.
Under current tax law, capital losses realized after October 31, may be deferred
and treated as occurring on the first day of the following fiscal year. For the
fiscal year ended April 30, 1999, the following Funds have elected to defer
losses occurring between
November 1, 1998 and April 30, 1999 under these rules, as follows:
<TABLE>
<CAPTION>
CAPITAL CURRENCY
LOSSES LOSSES
NAME OF FUND DEFERRED DEFERRED
- ---------------------------------------- --------- ---------
<S> <C> <C>
Strategic Natural Resources Fund........ $7,266 $198
</TABLE>
Such deferred losses will be treated as arising on the first day of the fiscal
year ending April 30, 2000.
9. SUBSEQUENT EVENT
The Adviser has entered into an agreement to merge the assets of the ASM Index
30 Fund, Inc. (the "ASM Fund") with and into a newly created series of the
Trust, the Orbitex Focus 30 Fund. A proxy statement regarding this transaction
has been filed with the Securities and Exchange Commission. The transaction is
pending the approval of the ASM Fund shareholders.
The ASM Fund has been named in a pending litigation relating to alleged
misappropriation of funds by the former advisor. If the merger transaction is
approved, the Orbitex Focus 30 Fund may succeed to the obligations, if any, of
the ASM Fund with respect to the pending litigation, including obligations of
the ASM Fund to indemnify its officers and directors. At the present time, the
liability of the Orbitex Focus 30 Fund, if any, is not readily determinable.
Neither the current Orbitex Funds nor Orbitex Management have been named in the
suit.
<PAGE>
ORBITEX GROUP OF FUNDS 32
- --------------------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of Orbitex Group of Funds:
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of the Strategic Natural Resources
Fund, Info-Tech & Communications Fund, and Growth Fund (each a "Fund"), each a
series of the Orbitex Group of Funds (the "Trust") at April 30, 1999, and the
results of each of their operations, the changes in each of their net assets and
the financial highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Trust's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at April 30, 1999 by
correspondence with the custodian and brokers, provide a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
June 11, 1999
<PAGE>
ORBITEX GROUP OF FUNDS 33
- --------------------------------------------------------------------------------
MEETING OF SHAREHOLDERS
ORBITEX GROUP OF FUNDS
A special meeting of the shareholders of the Trust was held on December 2, 1998
at the offices of the Trust, 410 Park Avenue, New York, New York. The matters
voted upon by the shareholders and the resulting votes are presented below:
PROPOSAL 1--TO ELECT A BOARD OF TRUSTEES:
<TABLE>
<CAPTION>
# OF SHARES VOTED % OF SHARES VOTED
------------------ -------------------
<S> <C> <C>
Ronald S. Altbach
Affirmative 644,487.6263 99.600%
Withheld 2,633.0000 0.400
------------------ --------
Total 647,120.6263 100.000%
------------------ --------
------------------ --------
Thomas T. Bachmann
Affirmative 643,748.2260 99.500%
Withheld 3,372.4003 0.500
------------------ --------
Total 647,120.6263 100.000%
------------------ --------
------------------ --------
Otto J. Felber
Affirmative 644,487.6263 99.600%
Withheld 2,633.0000 0.400
------------------ --------
Total 647,120.6263 100.000%
------------------ --------
------------------ --------
Stephen H. Hamrick
Affirmative 644,487.6263 99.600%
Withheld 2,633.0000 0.400
------------------ --------
Total 647,120.6263 100.000%
------------------ --------
------------------ --------
John D. Morgan
Affirmative 644,487.6263 99.600%
Withheld 2,633.0000 0.400
------------------ --------
TOTAL 647,120.6263 100.000%
------------------ --------
------------------ --------
James L. Nelson
Affirmative 644,487.6263 99.600%
Withheld 2,633.0000 0.400
------------------ --------
Total 647,120.6263 100.000%
------------------ --------
------------------ --------
Richard E. Stierwalt
Affirmative 644,487.6263 99.600%
Withheld 2,633.0000 0.400
------------------ --------
Total 647,120.6263 100.000%
------------------ --------
------------------ --------
</TABLE>
PROPOSAL 2--TO RATIFY THE SELECTION OF PRICEWATERHOUSECOOPERS LLP AS INDEPENDENT
ACCOUNTANTS OF THE TRUST:
<TABLE>
<CAPTION>
# OF SHARES VOTED % OF SHARES VOTED
------------------ -------------------
<S> <C> <C>
Affirmative 640,354.6263 98.955%
Withheld 1,624.0000 0.250
Abstain 5,142.0000 0.795
------------------ --------
Total 647,120.6263 100.000%
------------------ --------
------------------ --------
</TABLE>
