<PAGE>
LETTER FROM THE MANAGEMENT OF THE ORBITEX GROUP OF FUNDS 1
--------------------------------------------------------------------------------
Dear Shareholder:
WE ARE PLEASED TO PRESENT YOU WITH
THE ANNUAL REPORT FOR THE ORBITEX
GROUP OF FUNDS FOR THE PERIOD ENDED
APRIL 30, 2000.
We are pleased with the performance of the Orbitex Group of Funds during a
period notable for market volatility, especially in the technology and health
care sectors. Shareholders should realize that short-term fluctuations sometimes
involve an over-reaction to unexpected surprises, for example, a federal judge's
ruling against Microsoft. Looking ahead, we reiterate our belief that technology
in particular will be the primary engine powering the U.S. and world economies
for the foreseeable future.
The Orbitex Group of Funds have also been helped by the rebound of Asian
economies, which has led to increased demand for a wide variety of goods and
services. In particular, the ORBITEX STRATEGIC NATURAL RESOURCES FUND has
benefited from rising demand and higher prices for raw materials.
Recognizing the market's volatility, we seek to manage risk in the Funds in two
broad ways. First, we seek to reduce risk through diversification within each
sector or investment specialty. Second, we use our experience and judgment in
purchasing stocks whose valuations are grounded in companies with credible
earnings potential.
I am pleased to tell you that the Board of Trustees has approved the creation of
four new mutual funds. Each of these highly focused funds will cover a distinct
sector or specialty area: the INTERNET, EMERGING TECHNOLOGIES, FINANCIAL
SERVICES, and STRATEGIC INFRASTRUCTURE and will be opened later this year. I am
further pleased to announce the addition of two funds managed by our affiliate,
Clarke Lanzen Skalla: the ORBITEX AMERIGO FUND and the ORBITEX CLERMONT FUND,
which are both asset allocation funds. Both are currently open for investment
and can be accessed via your investment representative. With these additions, we
are confident the Orbitex Group of Funds will be better able to meet your
long-term investment needs.
The Board of Trustees of the Orbitex Group of Funds also voted on two
administrative matters that bear mention.
- The fiscal year-end of the ORBITEX FOCUS 30 FUND has been changed to coincide
with the other Funds. This will help reduce costs associated with different
reporting schedules.
- The ORBITEX STRATEGIC NATURAL RESOURCES FUND has been renamed the ORBITEX
ENERGY & BASIC MATERIALS FUND, effective June 5, 2000. This better represents
the Fund's existing investment strategy.
Separately, I am pleased to tell you that as of May 22, 2000, Glen Frey has
joined our team as the new portfolio manager of the ORBITEX INFO-TECH &
COMMUNICATIONS FUND.
Thank you for your investment in the Orbitex Group of Funds. All of us at
ORBITEX are eager to serve your investment needs in the future.
Sincerely
/s/ Richard Stierwalt
RICHARD STIERWALT
PRESIDENT
ORBITEX MANAGEMENT, INC.
<PAGE>
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ANNUALIZED TOTAL RETURNS AS OF APRIL 30, 2000
---------------------------------------------------------------------------------------------------
1 YEAR 5 YEAR SINCE INCEPTION INCEPTION DATE
<S> <C> <C> <C> <C> <C>
CLASS A SHARES 63.32% NA 34.89% 10/22/97
ORBITEX (incl. max. 5.75%
GROWTH sales charge)
FUND
CLASS B SHARES 68.22% NA 53.96% 9/16/98
CLASS C SHARES NA NA -40.22%* 3/14/00
---------------------------------------------------------------------------------------------------
ORBITEX CLASS A SHARES 94.55% NA 73.26% 10/22/97
INFO-TECH (incl. max. 5.75%
& sales charge)
COMMUNICATIONS
FUND CLASS B SHARES 100.25% NA 113.40% 9/16/98
CLASS C SHARES NA NA 7.61%* 1/14/00
---------------------------------------------------------------------------------------------------
ORBITEX CLASS A SHARES 17.62% NA 7.95% 10/23/97
STRATEGIC NATURAL (incl. max. 5.75%
RESOURCES sales charge)
FUND
CLASS B SHARES 19.03% NA 30.47% 9/21/98
---------------------------------------------------------------------------------------------------
CLASS A SHARES NA NA -7.83%* 7/12/99
ORBITEX (incl. max. 5.75%
FOCUS 30 sales charge)
FUND(1)
CLASS B SHARES NA NA -6.63%* 7/12/99
CLASS D SHARES 0.82% 20.05% 13.00% 3/4/91
---------------------------------------------------------------------------------------------------
ORBITEX CLASS A SHARES NA NA 63.15%* 7/15/99
HEALTH (incl. max. 5.75%
& sales charge)
BIOTECHNOLOGY
FUND CLASS B SHARES NA NA 67.50%* 7/15/99
CLASS C SHARES NA NA 4.63%* 1/18/00
---------------------------------------------------------------------------------------------------
</TABLE>
* Cumulative Return
Results represent past performance and do not indicate future returns. 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.
Total return is calculated assuming reinvestment of all dividends. Total returns
would have been lower had the Adviser (Orbitex Management, Inc.), the
Distributor (Funds Distributor, Inc.), 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 or fees
paid by the shareholders investing in each class.
Class A Shares are subject to the current, maximum 5.75% initial sales charge.
Class B Shares are subject to no initial sales charge, but subject to a
contingent deferred sales charge ("CDSC") declining from 5% to 0% over six
years. These shares have higher fees and expenses than Class A Shares.
Class C Shares are subject to no initial sales charge, but are subject to a CDSC
of 1% on shares redeemed within 18 months of purchase. These shares have higher
fees and expenses than Class A Shares.
Class D Shares are subject to neither an initial sales charge nor a CDSC.
(1) Before the close of business on July 9, 1999, the Fund operated as a
separate fund called the ASM Index 30 Fund ("ASM Fund"). On July 12, 1999,
the Fund was reorganized as a new Fund of the Orbitex Group of Funds and
existing shareholders of the ASM Fund received Class D Shares in exchange
for their ASM Fund Shares. Upon the effectiveness of the organization, the
investment policy of the Fund changed from the "passive" investment in an
equal number of shares of each of the companies in the Dow Jones Industrial
Average to the "active" investment in some or all of those companies based
on the Adviser's assessment of the prospects for those companies.
Additionally, the ASM Fund was subject to a different level of fees than are
applied to the Fund.
Past performance does not necessarily indicate how the Fund will perform in
the future. Furthermore, because of the change in investment policy and
different fee level, the performance shown above prior to July 12, 1999,
which reflects the Fund's previous "passive" investment policy, should not
be considered indicative of the performance of the Fund as an actively
managed Fund.
<PAGE>
3
--------------------------------------------------------------------------------
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 (assuming reinvestment of all dividends and
distributions and a one-time sales charge) versus the Fund's benchmark index.
[GRAPH]
<TABLE>
<CAPTION>
10/22/97 11/30/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98
11/30/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Mlt-Cap Growth IX $9,432.32 $9,512.49 $9,554.35 $10,349.27 $10,854.32 $10,980.23 $10,562.98 $11,105.91
S & P 500 Index P $9,885.00 $10,055.02 $10,166.63 $10,899.65 $11,457.71 $11,573.43 $11,374.37 $11,836.17
GROWTH FUND (CLASS A) $9,758.02 $9,940.23 $9,557.71 $10,499.45 $10,970.70 $11,266.02 $11,002.12 $11,485.93
<CAPTION>
6/30/98 7/31/98 8/31/98 9/30/98 10/31/98 11/30/98 12/31/98 1/31/99
7/31/98 8/31/98 9/30/98 10/31/98 11/30/98 12/31/98 1/31/99 2/28/99
Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Mlt-Cap Growth IX $10,834.93 $8,829.38 $9,465.98 $9,997.97 $10,693.83 $11,872.29 $12,602.44 $11,945.85
S & P 500 Index P $11,709.52 $10,018.67 $10,657.86 $11,525.41 $12,225.00 $12,929.16 $13,469.60 $13,050.69
GROWTH FUND (CLASS A) $11,705.85 $9,695.18 $10,122.45 $10,468.03 $10,857.60 $11,346.23 $12,156.20 $11,682.07
<CAPTION>
2/28/99 3/31/99 4/30/99 5/31/99 6/30/99 7/31/99 8/31/99 9/30/99
3/31/99 4/30/99 5/31/99 6/30/99 7/31/99 8/31/99 9/30/99 10/31/99
Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Mlt-Cap Growth IX $12,625.57 $12,932.37 $12,682.77 $13,569.30 $13,263.99 $13,131.35 $13,056.50 $13,976.99
S & P 500 Index P $13,572.72 $14,097.99 $13,765.27 $14,530.62 $14,075.81 $14,006.84 $13,623.05 $14,485.39
GROWTH FUND (CLASS A) $12,617.16 $12,287.90 $11,721.58 $12,630.33 $12,920.08 $13,479.82 $13,532.50 $15,152.45
<CAPTION>
10/31/99 11/30/99 12/31/99 1/31/00 2/29/00 3/31/00
11/30/99 12/31/99 1/31/00 2/29/00 3/31/00 4/30/00
Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C>
Lipper Mlt-Cap Growth IX $15,097.94 $17,377.73 $17,202.21 $19,952.85 $19,875.03 $18,209.50
S & P 500 Index P $14,782.34 $15,650.07 $14,864.43 $14,583.50 $16,009.76 $15,527.87
GROWTH FUND (CLASS A) $17,451.90 $22,502.45 $23,103.06 $36,876.17 $28,296.98 $21,287.58
</TABLE>
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. The Lipper Multi-Cap Growth 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]
<TABLE>
<CAPTION>
10/22/97 11/30/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98
11/30/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Sci & Tech Fd Inx $8,970.60 $8,550.78 $8,702.12 $9,737.68 $9,817.53 $10,238.70 $9,488.20 $10,044.21
S & P 500 Index P $9,885.00 $10,055.02 $10,166.63 $10,899.65 $11,457.71 $11,573.43 $11,374.37 $11,836.17
Info-Tech & Communications
(Class A)* $8,878.35 $8,859.50 $9,081.56 $10,706.80 $11,498.50 $12,327.90 $11,611.60 $12,918.53
<CAPTION>
6/30/98 7/31/98 8/31/98 9/30/98 10/31/98 11/30/98 12/31/98 1/31/99
7/31/98 8/31/98 9/30/98 10/31/98 11/30/98 12/31/98 1/31/99 2/28/99
Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Sci & Tech Fd Inx $9,949.79 $8,082.22 $9,035.92 $9,725.36 $10,815.57 $12,565.53 $14,192.77 $12,711.04
S & P 500 Index P $11,709.52 $10,018.67 $10,657.86 $11,525.41 $12,225.00 $12,929.16 $13,469.60 $13,050.69
Info-Tech & Communications
(Class A)* $12,987.65 $10,656.53 $11,077.52 $12,239.93 $12,786.58 $13,481.90 $16,163.06 $15,567.25
<CAPTION>
2/28/99 3/31/99 4/30/99 5/31/99 6/30/99 7/31/99 8/31/99 9/30/99
3/31/99 4/30/99 5/31/99 6/30/99 7/31/99 8/31/99 9/30/99 10/31/99
Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Sci & Tech Fd Inx $14,006.30 $14,181.38 $14,161.53 $16,001.11 $15,996.31 $16,876.10 $17,105.62 $18,906.84
S & P 500 Index P $13,572.72 $14,097.99 $13,765.27 $14,530.62 $14,075.81 $14,006.84 $13,623.05 $14,485.39
Info-Tech & Communications
(Class A)* $17,189.89 $19,408.40 $19,769.65 $21,766.26 $21,417.65 $22,311.37 $22,209.95 $24,536.17
<CAPTION>
10/31/99 11/30/99 12/31/99 1/31/00 2/29/00 3/31/00
11/30/99 12/31/99 1/31/00 2/29/00 3/31/00 4/30/00
CUM CUM CUM CUM CUM CUM
TOT RETURN TOT RETURN TOT RETURN TOT RETURN TOT RETURN TOT RETURN
<S> <C> <C> <C> <C> <C> <C>
Lipper Sci & Tech Fd Inx $21,710.73 $26,877.88 $26,595.66 $33,760.53 $32,734.21 $28,914.13
S & P 500 Index P $14,782.34 $15,650.07 $14,864.43 $14,583.50 $16,009.76 $15,527.87
Info-Tech & Communications
(Class A)* $28,970.54 $36,101.69 $36,223.90 $48,982.05 $44,901.35 $40,073.75
</TABLE>
The Lipper Science & 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.
"S&P 500 Index" is a registered trademark of McGraw-Hill Co., Inc.
<PAGE>
PERFORMANCE HIGHLIGHTS
--------------------------------------------------------------------------------
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 (assuming reinvestment of all dividends and
distributions and a one-time sales charge) versus the Fund's benchmark index.
[GRAPH]
<TABLE>
<CAPTION>
10/23/97 11/30/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98
11/30/97 12/31/97 1/31/98 2/28/98 3/31/98 4/30/98 5/31/98 6/30/98
Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Nat Res Fd Index $9,095.23 $9,172.54 $8,615.77 $9,057.76 $9,518.79 $9,771.99 $9,258.97 $8,899.72
S & P 500 Index P $10,070.00 $10,243.20 $10,356.90 $11,103.64 $11,672.14 $11,790.03 $11,587.24 $12,057.68
STRATEGIC NATURAL RESOURCES
(CLASS A) $8,912.67 $8,760.59 $8,666.47 $8,995.73 $9,631.91 $9,834.06 $9,831.43 $9,396.02
<CAPTION>
6/30/98 7/31/98 8/31/98 9/30/98 10/31/98 11/30/98 12/31/98 1/31/99
7/31/98 8/31/98 9/30/98 10/31/98 11/30/98 12/31/98 1/31/99 2/28/99
Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Nat Res Fd Index $7,847.77 $6,331.58 $7,456.70 $7,722.16 $7,201.69 $7,051.17 $6,625.99 $6,394.08
S & P 500 Index P $11,928.67 $10,206.17 $10,857.32 $11,741.11 $12,453.79 $13,171.13 $13,721.68 $13,294.94
STRATEGIC NATURAL RESOURCES
(CLASS A) $8,197.06 $6,878.21 $7,799.51 $7,988.82 $7,471.38 $7,506.14 $7,201.32 $7,271.57
<CAPTION>
2/28/99 3/31/99 4/30/99 5/31/99 6/30/99 7/31/99 8/31/99 9/30/99
3/31/99 4/30/99 5/31/99 6/30/99 7/31/99 8/31/99 9/30/99 10/31/99
Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Nat Res Fd Index $7,697.83 $9,003.38 $8,731.48 $9,140.11 $9,334.80 $9,572.84 $9,232.04 $8,884.92
S & P 500 Index P $13,826.74 $14,361.83 $14,022.89 $14,802.57 $14,339.25 $14,268.98 $13,878.01 $14,756.49
STRATEGIC NATURAL RESOURCES
(CLASS A) $8,294.54 $9,721.49 $9,434.80 $9,734.52 $9,897.41 $10,242.75 $10,001.67 $9,617.24
<CAPTION>
10/31/99 11/30/99 12/31/99 1/31/00 2/29/00 3/31/00
11/30/99 12/31/99 1/31/00 2/29/00 3/31/00 4/30/00
CUM Cum Cum Cum Cum Cum
TOT RETURN Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C>
Lipper Nat Res Fd Index $8,794.29 $9,413.41 $9,012.40 $9,144.88 $10,525.76 $10,422.60
S & P 500 Index P $15,059.00 $15,942.96 $15,142.63 $14,856.43 $16,309.39 $15,818.48
STRATEGIC NATURAL RESOURCES
(CLASS A) $9,770.62 $10,395.94 $10,239.61 $10,343.83 $11,926.67 $12,128.59
</TABLE>
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]
<TABLE>
<CAPTION>
3/4/91 3/31/91 4/30/91 5/31/91 6/30/91 7/31/91 8/31/91 9/30/91 10/31/91
3/31/91 4/30/91 5/31/91 6/30/91 7/31/91 8/31/91 9/30/91 10/31/91 11/30/91
Cum Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $9,949.26 $9,968.16 $10,384.83 $9,862.48 $10,322.07 $10,574.96 $10,494.59 $10,692.94 $10,244.90
Dow Jones Ind Dly Reinv $9,839.58 $9,771.69 $10,294.47 $9,897.11 $10,308.83 $10,429.44 $10,352.26 $10,541.71 $9,993.54
FOCUS 30 FUND (CLASS A) $7,790.00 $8,790.00
<CAPTION>
11/30/91 12/31/91 1/31/92 2/29/92 3/31/92 4/30/92 5/31/92 6/30/92 7/31/92
12/31/91 1/31/92 2/29/92 3/31/92 4/30/92 5/31/92 6/30/92 7/31/92 8/31/92
Cum Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $11,353.40 $11,269.38 $11,472.23 $11,215.26 $11,421.62 $11,509.56 $11,256.35 $11,694.22 $11,454.49
Dow Jones Ind Dly Reinv $10,958.91 $11,159.46 $11,361.45 $11,269.42 $11,715.69 $11,898.45 $11,640.26 $11,916.13 $11,496.68
FOCUS 30 FUND (CLASS A) $9,733.42
<CAPTION>
8/31/92 9/30/92 10/31/92 11/30/92 12/31/92 1/31/93 2/28/93 3/31/93 4/30/93
9/30/92 10/31/92 11/30/92 12/31/92 1/31/93 2/28/93 3/31/93 4/30/93 5/31/93
Cum Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $11,589.66 $11,667.31 $12,146.83 $12,333.89 $12,475.73 $12,598.00 $12,964.60 $12,723.46 $13,066.99
Dow Jones Ind Dly Reinv $11,565.66 $11,417.62 $11,757.87 $11,762.57 $11,802.56 $12,076.38 $12,328.78 $12,307.82 $12,728.75
FOCUS 30 FUND (CLASS A) $9,385.15 $9,986.82
<CAPTION>
5/31/93 6/30/93 7/31/93 8/31/93 9/30/93 3/31/94 4/30/94 5/31/94 6/30/94
6/30/93 7/31/93 8/31/93 9/30/93 10/31/93 4/30/94 5/31/94 6/30/94 7/31/94
Cum Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $13,125.79 $13,086.41 $13,615.11 $13,664.12 $13,899.14 $13,661.76 $13,858.49 $13,524.50 $13,919.42
Dow Jones Ind Dly Reinv $12,709.66 $12,802.44 $13,267.17 $12,939.47 $13,402.70 $13,591.38 $13,935.24 $13,464.23 $13,993.37
FOCUS 30 FUND (CLASS A) $10,763.25 $10,692.06
<CAPTION>
7/31/94 8/31/94 9/30/94 10/31/94 11/30/94 12/31/94 1/31/95 2/28/95 3/31/95
8/31/94 9/30/94 10/31/94 11/30/94 12/31/94 1/31/95 2/28/95 3/31/95 4/30/95
Cum Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $14,483.16 $14,105.14 $14,336.47 $13,837.56 $13,993.92 $14,245.81 $14,775.76 $15,121.51 $15,561.55
Dow Jones Ind Dly Reinv $14,610.48 $14,375.25 $14,632.57 $14,061.90 $14,450.01 $14,499.14 $15,192.20 $15,778.62 $16,409.76
FOCUS 30 FUND (CLASS A) $11,210.00 $12,272.29
<CAPTION>
4/30/95 5/31/95 6/30/95 7/31/95 8/31/95 9/30/95 3/31/96 4/30/96 5/31/96
5/31/95 6/30/95 7/31/95 8/31/95 9/30/95 10/31/95 4/30/96 5/31/96 6/30/96
Cum Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $16,138.88 $16,489.10 $17,010.15 $17,113.91 $17,728.30 $17,586.48 $19,911.80 $20,280.17 $20,292.34
Dow Jones Ind Dly Reinv $17,025.13 $17,403.09 $17,996.53 $17,688.79 $18,406.95 $18,289.15 $21,668.73 $22,032.76 $22,107.67
FOCUS 30 FUND (CLASS A) $13,261.30 $15,359.88
<CAPTION>
6/30/96 7/31/96 8/31/96 9/30/96 10/31/96 11/30/96 12/31/96 1/31/97 2/28/97
7/31/96 8/31/96 9/30/96 10/31/96 11/30/96 12/31/96 1/31/97 2/28/97 3/31/97
Cum Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $19,496.88 $20,003.80 $20,983.98 $21,426.74 $22,960.90 $22,572.86 $23,712.79 $23,902.49 $22,989.42
Dow Jones Ind Dly Reinv $21,638.99 $22,045.80 $23,123.84 $23,720.44 $25,727.19 $25,469.92 $26,921.70 $27,255.53 $26,132.60
FOCUS 30 FUND (CLASS A) $16,576.98
<CAPTION>
3/31/97 4/30/97 5/31/97 6/30/97 7/31/97 8/31/97 9/30/97 3/31/98 4/30/98
4/30/97 5/31/97 6/30/97 7/31/97 8/31/97 9/30/97 10/31/97 4/30/98 5/31/98
Cum Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $24,012.44 $25,395.56 $26,454.56 $28,449.23 $27,231.60 $28,625.86 $27,761.36 $32,654.08 $32,098.96
Dow Jones Ind Dly Reinv $27,841.67 $29,194.78 $30,590.29 $32,801.97 $30,482.87 $31,814.97 $29,807.45 $36,621.30 $36,046.34
FOCUS 30 FUND (CLASS A) $19,331.01 $20,754.37 $25,406.05
<CAPTION>
5/31/98 6/30/98 7/31/98 8/31/98 9/30/98 10/31/98 11/30/98 12/31/98 1/31/99
6/30/98 7/31/98 8/31/98 9/30/98 10/31/98 11/30/98 12/31/98 1/31/99 2/28/99
Cum Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $32,699.21 $32,133.51 $27,747.29 $29,081.93 $31,411.40 $33,013.38 $34,287.69 $34,856.87 $34,058.65
Dow Jones Ind Dly Reinv $36,302.27 $36,040.90 $30,667.20 $31,952.15 $35,032.34 $37,256.90 $37,569.85 $38,313.74 $38,191.13
FOCUS 30 FUND (CLASS A) $24,309.77
<CAPTION>
2/28/99 3/31/99 4/30/99 5/31/99 6/30/99 7/31/99 8/31/99 9/30/99 10/31/99
3/31/99 4/30/99 5/31/99 6/30/99 7/31/99 8/31/99 9/30/99 10/31/99 11/30/99
Cum Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $35,094.03 $37,161.07 $36,525.62 $38,136.39 $37,053.32 $36,378.95 $35,032.93 $36,721.52 $36,850.04
Dow Jones Ind Dly Reinv $40,215.26 $44,353.41 $43,510.70 $45,259.83 $43,978.98 $44,801.38 $42,821.16 $44,469.78 $45,167.95
FOCUS 30 FUND (CLASS A) $30,370.41 $30,164.46
<CAPTION>
11/30/99 12/31/99 1/31/00 2/29/00 3/31/00
12/31/99 1/31/00 2/29/00 3/31/00 4/30/00
Cum Cum Cum Cum CUM
Tot Return Tot Return Tot Return Tot Return TOT RETURN
<S> <C> <C> <C> <C> <C>
Lipper Lg-Cap Value IX $37,985.02 $36,378.26 $34,846.73 $38,038.69 $37,616.46
Dow Jones Ind Dly Reinv $47,792.21 $45,493.40 $42,195.13 $45,553.87 $44,797.67
FOCUS 30 FUND (CLASS A) $30,618.19
</TABLE>
The Lipper Large Cap Value 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.
"Dow Jones Industrial Average" is the property of Dow Jones & Company. The
Orbitex Focus 30 Fund is neither affiliated with, nor endorsed by, Dow Jones &
Company.
"S&P 500 Index" is a registered trademark of McGraw-Hill Co., Inc.
<PAGE>
5
[GRAPH]
<TABLE>
<CAPTION>
7/15/99 7/31/99 8/31/99 9/30/99 10/31/99 11/30/99 12/31/99 1/31/00
7/31/99 8/31/99 9/30/99 10/31/99 11/30/99 12/31/99 1/31/00 2/29/00
Cum Cum Cum Cum Cum Cum Cum Cum
Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return Tot Return
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Lipper Hlth/Biotch Fd IX $9,632.77 $9,896.71 $9,182.17 $9,617.40 $10,022.29 $10,536.44 $11,288.74 $12,853.36
S & P 500 Index P $9,429.00 $9,382.80 $9,125.71 $9,703.37 $9,902.29 $10,483.55 $9,957.28 $9,769.08
HEALTH & BIOTECHNOLOGY (CLASS A) $9,038.64 $9,613.57 $9,198.86 $9,651.27 $11,187.56 $12,950.05 $16,116.87 $26,757.78
<CAPTION>
2/29/00 3/31/00
3/31/00 4/30/00
Cum Cum
Tot Return Tot Return
<S> <C> <C>
Lipper Hlth/Biotch Fd IX $11,529.46 $11,411.86
S & P 500 Index P $10,724.50 $10,401.69
HEALTH & BIOTECHNOLOGY (CLASS A) $17,172.48 $16,314.80
</TABLE>
The Lipper Health & Biotechnology 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.
"S&P 500 Index" is a registered trademark of McGraw-Hill Co., Inc.
<PAGE>
LETTER FROM FUND MANAGEMENT ORBITEX GROWTH FUND
--------------------------------------------------------------------------------
Dear Shareholder:
The ORBITEX GROWTH FUND seeks to achieve capital growth through selective
investment in companies of all sizes that offer potential for growth. For the
12 months ended April 30, 2000, the Fund's total return (Class A Shares) was
63.32 percent.*
INVESTMENT ENVIRONMENT During the past 12 months, tremendous volatility has
characterized the markets. Euphoria overtook the technology and biotechnology
sectors from November to February, leaving all other sectors behind. During
March and April, energy, basic materials and natural gas sectors led the market.
However, it is important to note that much of this volatility had more to do
with interest rates and inflation than with company fundamentals. As we look for
continued momentum throughout the year, fundamental earnings prospects for
selected companies in both the technology and biotechnology areas appear to be
outstanding.
<TABLE>
<CAPTION>
TOP 10 PORTFOLIO HOLDINGS**
-------------------------------------------------
<S> <C>
Infospace, Inc. 3.16%
-------------------------------------------------
i2 Technologies, Inc. 3.04%
-------------------------------------------------
PMC-Sierra, Inc. 2.94%
-------------------------------------------------
E-Tek Dynamics, Inc. 2.85%
-------------------------------------------------
Applied Micro Circuits Corp. 2.61%
-------------------------------------------------
DoubleClick Inc. 2.49%
-------------------------------------------------
RF Micro Devices, Inc. 2.46%
-------------------------------------------------
QLogic Corp. 2.41%
-------------------------------------------------
Art Technology Group, Inc. 2.38%
-------------------------------------------------
Conexant Systems, Inc. 2.19%
-------------------------------------------------
</TABLE>
All holdings as of 4/30/00. Portfolio holdings are subject to change and
should not be considered a recommendation to buy individual securities.
* Stated return includes the maximum sales charge of 5.75%.
** Based on total investment value of the Fund as of 4/30/00.
<PAGE>
7
--------------------------------------------------------------------------------
PORTFOLIO POSITIONING During the period, we continued to significantly
overweight the technology and biotechnology sectors. We also invested in
specific retailers, as we believe that, ultimately, the consumer will continue
to fuel this bull market. In line with our expectations for rising interest
rates, we are underweight in the financial sector.
INVESTMENT OUTLOOK Based on our analysis of current long-term bull market
trends, we believe that the Fund's investment in technology and biotechnology
should yield the best results. As we expect modest inflation and increasing
productivity, our outlook remains as bullish as ever. We will stay the course
and remain fully invested. We continue to emphasize companies with sound
fundamentals in the sectors with the best growth opportunities: technology,
telecommunications, biotechnology and retailers.
Sincerely,
RICHARD A. BEGUN
PORTFOLIO MANAGER
[CHART]
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION*
<S> <C>
Advertising 2.50%
Retail 2.53%
Computer Services 2.62%
Communication Services 3.18%
Retail Food 3.84%
Computer Networks 4.96%
Drugs & Health Care 6.68%
Electronics 7.31%
Computer Equipment 7.71%
Internet 9.55%
Biotechnology 10.71%
Other 10.88%
Software 10.98%
Semiconductor 16.55%
</TABLE>
* Based on total net assets of the Fund as of 4/30/00.
<PAGE>
LETTER FROM FUND MANAGEMENT ORBITEX INFO-TECH & COMMUNICATIONS FUND
--------------------------------------------------------------------------------
Dear Shareholder:
The ORBITEX INFO-TECH & COMMUNICATIONS FUND seeks to achieve superior long-term
capital growth through selective investments in companies engaged in the
communication, information and related technology industries. The Fund's return
(Class A Shares) for the 12 months ended April 30, 2000, was 94.55 percent.*
INVESTMENT ENVIRONMENT The past 12 months have been an extraordinary time to be
invested in the Internet and communications technology arenas. It was also very
challenging. We attribute the Fund's overall performance to a fundamental theme
shift made in mid-October. Our new investment theme redefined the Internet from
a commerce model to a software and network model. The concept of the paperless
business market proved to be the overwhelming driver of the market.
PORTFOLIO POSITIONING The declines in the Nasdaq market during March and April
proved frustrating even for the most experienced market traders. Stronger
inflation and GDP results, along with the proposed break-up and weak results of
Microsoft, sent the market into a surprising and disappointing tailspin.
However, we continue to believe strongly in the outlook for communications and
technology as economic growth around the world clearly benefits from the
deployment of fiber networks and the fundamental growth of the Internet. We
believe that the communication technology sector is, in turn, entering its
second phase of development.
<TABLE>
<CAPTION>
TOP 10 PORTFOLIO HOLDINGS**
-------------------------------------------------
<S> <C>
Bookham Technology 6.06%
-------------------------------------------------
Oracle Corp. 5.05%
-------------------------------------------------
Advanced Micro Devices, Inc. 4.87%
-------------------------------------------------
Tellabs, Inc. 4.15%
-------------------------------------------------
Cisco Systems, Inc. 4.03%
-------------------------------------------------
Sun Microsystems, Inc. 3.95%
-------------------------------------------------
CIENA Corp. 3.75%
-------------------------------------------------
TIBCO Software Inc. 3.55%
-------------------------------------------------
Hewlett-Packard Co. 2.86%
-------------------------------------------------
webMethods, Inc. 2.73%
-------------------------------------------------
</TABLE>
All holdings as of 4/30/00. Portfolio holdings are subject to change and
should not be considered a recommendation to buy individual securities.
* Stated return includes the maximum sales charge of 5.75%.
** Based on total investment value of the Fund as of 4/30/00.
<PAGE>
9
--------------------------------------------------------------------------------
Phase one was the birthing phase that occurred over the past two years. The
second phase is simply recognizing that the "exuberant euphoria" surrounding
many of the stocks is over and that the investment community will return to more
fundamental analysis regarding the valuation of each company. Therefore, we are
consolidating our holdings in the Fund back to 40 to 45 stocks, focusing on
fundamentals and striving to support the intrinsic value of all of our holdings.
Excessive valuations will not hold water within the investment community going
forward.
INVESTMENT OUTLOOK Hence, we believe it will be more of a stock picker's
market, as opposed to a momentum market. With the rapid changes occurring in
technology and the fundamental benefits being gained worldwide as a result, we
believe that technology, as an investment theme, will outperform the broad
market both this year and on a secular basis. During the March-April sell-off,
we took advantage of the weak pricing in the Bookham initial public offering and
placed it in our top 10 holdings. Bookham is the first company to put optical
switching on a semiconductor chip and one we have followed for two years. The
stock has risen from our purchase price and moved into our #1 holding, a
position we are very comfortable with and which has already made a valuable
contribution to the Fund.
Sincerely,
CRAIG W. ELLIS
PORTFOLIO MANAGER
[GRAPH]
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION*
<S> <C>
Broadcasting 2.05%
Computer Services 2.14%
Other 3.00%
Electronics 6.12%
Computer Equipment 6.88%
Internet 7.17%
Semiconductor 14.04%
Communication Services 14.46%
Software 19.95%
Computer Networks 24.19%
</TABLE>
* Based on total net assets of the Fund as of 4/30/00.
Funds whose investments are concentrated in a specific industry or sector are
subject to a higher degree of risk than funds whose investments are diversified
and may not be suitable for all investors. In addition, technology securities
tend to be relatively volatile as compared with other types of investments.
<PAGE>
LETTER FROM FUND MANAGEMENT ORBITEX STRATEGIC NATURAL RESOURCES FUND
--------------------------------------------------------------------------------
Dear Shareholder:
The ORBITEX STRATEGIC NATURAL RESOURCES FUND seeks to achieve capital growth
through a flexible policy of investing primarily in common stocks of companies
engaged in, or supportive of, natural resource companies. For the 12 months
ended April 30, 2000, the Fund's total return (Class A Shares) was 17.62
percent.*
INVESTMENT ENVIRONMENT During the period covered by this report, the market has
seen tremendous volatility and a rethinking of how to set valuations for both
"old" and "new" economy stocks. We believe that investors will begin to
emphasize earnings and returns. For example, among out of fashion steel stocks,
companies such as Ispat International are trading at less than six times this
year's earnings estimates and less than 2.5 times cash flow. Low valuations
persist despite a tremendous recovery in world markets, led by Asia and Europe.
PORTFOLIO POSITIONING We have positioned the Fund to take advantage of several
domestic and international trends that help create significant positive earnings
surprises. This strategy has propelled our paper and natural gas holdings in
particular. We sold out of a number of "high-flying" stocks in the Fund and
purchased names with low price-to-earnings ratios and price-to-cash flows. These
moves significantly helped the Fund's performance.
<TABLE>
<CAPTION>
TOP 10 PORTFOLIO HOLDINGS**
-------------------------------------------------
<S> <C>
Allegheny Technologies, Inc. 5.59%
-------------------------------------------------
Ispat International 5.17%
-------------------------------------------------
Abitibi-Consolidated Inc. 4.87%
-------------------------------------------------
Apache Corp. 4.75%
-------------------------------------------------
AK Steel Holding Corp. 4.73%
-------------------------------------------------
EOG Resources, Inc. 4.42%
-------------------------------------------------
Bethlehem Steel Corp. 4.39%
-------------------------------------------------
Union Pacific Resources Group Inc. 4.18%
-------------------------------------------------
Corus Group 4.18%
-------------------------------------------------
El Paso Energy Corp. 3.91%
-------------------------------------------------
</TABLE>
All holdings as of 4/30/00. Portfolio holdings are subject to change and
should not be considered a recommendation to buy individual securities.
* Stated return includes the maximum sales charge of 5.75%.
** Based on total investment value of the Fund as of 4/30/00.
<PAGE>
11
--------------------------------------------------------------------------------
With the price of paper, pulp and metals up by between 50%-200% over the past
year, normally the shares of companies in these industries would soar. Actually
the price of many of these companies declined over the past year and only
recently has started to recover. There currently exists an unprecedented gap
between the price of commodities and the valuation of companies selling those
products. We believe that a major closing of the gap between fundamentals and
share valuations is imminent, and have positioned the Fund to take advantage of
this trend.
INVESTMENT OUTLOOK We strongly believe that, as investors leave hype for
profits, those companies with significant earnings and cash flows will benefit.
Therefore, a key focus of the Fund is to buy those companies taking best
advantage of the global commodity price inflation.
Sincerely,
KENNETH W. HOFFMAN, CFA
PORTFOLIO MANAGER
[GRAPH]
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION*
<S> <C>
Mining 2.45%
Other 3.00%
Oil Production 6.72%
Paper & Related Products 16.31%
Natural Gas 20.60%
Steel 25.26%
Oil & Gas Exploration 25.66%
and Production
</TABLE>
* Based on total net assets of the Fund as of 4/30/00.
Funds whose investments are concentrated in a specific industry or sector are
subject to a higher degree of risk than funds whose investments are diversified
and may not be suitable for all investors.
<PAGE>
LETTER FROM FUND MANAGEMENT ORBITEX FOCUS 30 FUND
--------------------------------------------------------------------------------
Dear Shareholder:
The ORBITEX FOCUS 30 FUND seeks to achieve long-term capital growth and
current income through focused investment in some or all of the companies
comprising the Dow Jones Industrial Average.* For the 12 months ended April 30,
2000, the Fund's total return (Class D Shares) was 0.82 percent.
INVESTMENT ENVIRONMENT Market volatility has been the cornerstone during the
past six months. Performance of "New Economy" stocks led the market from
November to February, while "Old Economy" stocks outperformed during March and
April. We believe that the recent downturn in New Economy stocks was the result
of concerns about valuation. Our parallel view is that the euphoria in Old
Economy stocks is justified as a long-overdue expansion of price-to-earnings
multiples. In our opinion, the divergence in valuation between Old and New
companies will continue to shrink, and the highest-quality companies with the
best fundamentals will be the optimal performers.
<TABLE>
<CAPTION>
TOP 10 PORTFOLIO HOLDINGS**
-------------------------------------------------
<S> <C>
Intel Corp. 6.93%
-------------------------------------------------
General Electric Co. 6.74%
-------------------------------------------------
Hewlett-Packard Co. 5.91%
-------------------------------------------------
American Express Co. 5.11%
-------------------------------------------------
J.P. Morgan & Co. 5.01%
-------------------------------------------------
Amgen, Inc. 4.66%
-------------------------------------------------
International Business Machines Corp. 4.44%
-------------------------------------------------
Cisco Systems, Inc. 4.10%
-------------------------------------------------
Exxon Mobil Corp. 3.82%
-------------------------------------------------
General Motors Corp. 3.77%
-------------------------------------------------
</TABLE>
All holdings as of 4/30/00. Portfolio holdings are subject to change and
should not be considered a recommendation to buy individual securities.
* "Dow Jones Industrial Average" is the property of Dow Jones & Company. The
Orbitex Focus 30 Fund is neither affiliated with, nor endorsed by, Dow
Jones & Company.
** Based on total investment value of the Fund as of 4/30/00.
<PAGE>
13
--------------------------------------------------------------------------------
PORTFOLIO POSITIONING During the period, we continued to overweight technology
and service companies because we believe that the consumer remains the driving
force in both of these rapidly growing areas. As the Federal Reserve Board
completes its cycle of interest rate hikes, companies in the financial sector
will again become a focal point for the Fund.
INVESTMENT OUTLOOK As interest rate increases moderate and evidence continues
to show that inflation is under control, we believe that the markets are primed
for a rally into the end of 2000. High-quality, large-cap Old Economy stocks
that implement New Economy technology will be the clear leaders. We remain fully
invested and bullish for the future.
Sincerely,
RICHARD A. BEGUN
PORTFOLIO MANAGER
[GRAPH]
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION*
<S> <C>
Energy 3.83%
Communication Services 4.38%
Other 5.63%
Basic Materials 6.97%
Consumer Staples 7.22%
Consumer Cyclicals 10.11%
Health Care 10.70%
Financial 12.75%
Capital Goods 13.99%
Technology 24.42%
</TABLE>
* Based on total net assets of the Fund as of 4/30/00.
<PAGE>
LETTER FROM FUND MANAGEMENT ORBITEX HEALTH & BIOTECHNOLOGY FUND
--------------------------------------------------------------------------------
Dear Shareholder:
The ORBITEX HEALTH & BIOTECHNOLOGY FUND seeks to achieve capital growth through
a flexible policy of investing primarily in common stocks of companies engaged
in, or supportive of, health care and biotechnology companies. The cumulative
returns of the Fund's Class A shares, from their inception on July 15, 1999
through April 30, 2000, was 63.15 percent.*
INVESTMENT ENVIRONMENT So far the new millennium has brought considerable
volatility to the equity markets. We expect this volatility to persist at a more
moderate level going forward. We will continue to use volatility to the Fund's
advantage by buying stocks that appear unjustly depressed yet contain the
potential for significant success over the next 12 to 18 months.
During the period covered by this report, the Fund has enjoyed strong
performance due to the rally in biotechnology stocks. Investors have begun to
recognize that the efforts of the biotechnology industry are nearing fruition
and that an increasing number of companies are likely to have successful
products on the market within the next few years. This upswing was a sharp
contrast from the rest of the health care sector, which posted generally
lackluster performance. Drug companies continue to be hampered by declining
earnings growth and the specter of increased regulation emanating from election
year campaign rhetoric. HMO and nursing home stocks are being suppressed by
regulatory efforts to tighten health care expenses.
<TABLE>
<CAPTION>
TOP 10 PORTFOLIO HOLDINGS**
-------------------------------------------------
<S> <C>
Enzon, Inc. 5.05%
-------------------------------------------------
Protein Design Labs, Inc. 5.01%
-------------------------------------------------
MedQuist, Inc. 4.73%
-------------------------------------------------
ICOS Corp. 4.50%
-------------------------------------------------
American Home Products Corp. 4.48%
-------------------------------------------------
Medarex, Inc. 4.42%
-------------------------------------------------
Titan Pharmaceuticals, Inc. 4.36%
-------------------------------------------------
Sepracor, Inc. 4.33%
-------------------------------------------------
Boston Scientific Corp. 4.27%
-------------------------------------------------
ChiRex, Inc. 3.94%
-------------------------------------------------
</TABLE>
All holdings as of 4/30/00. Portfolio holdings are subject to change and
should not be considered a recommendation to buy individual securities.
* Stated return includes the maximum sales charge of 5.75%.
** Based on total investment value of the Fund as of 4/30/00.
<PAGE>
15
--------------------------------------------------------------------------------
PORTFOLIO POSITIONING We continue to weight Biotechnology (including Genomics)
heavily, which we feel is the most attractive area within health care due to the
increasing number of future product launches. The Fund also has a solid
weighting in Medical Instruments, a very innovative segment that is experiencing
strong growth in earnings and cash flows. Pharmaceutical stocks are a quite
limited portion of the portfolio, due to the threat of increased regulation and
decelerating earnings growth. We are not invested in heavily regulated nursing
home, HMO or hospital stocks.
INVESTMENT OUTLOOK The rate of scientific advancement is accelerating as new
technologies within research and development laboratories are "industrializing"
the discovery process, which is enhancing productivity. With a record number
of new biotechnology products currently in the R&D pipeline, the stage is set
for strong earnings growth over the next five years. Therefore, we have
dedicated a large portion of Fund assets to biotechnology. In addition, we
are emphasizing technology-oriented areas of health care that have limited
exposure to regulation, such as medical devices and vendors to large
pharmaceutical companies. We are quite bullish for these health care segments
over the next few years.
Sincerely,
TIMOTHY F. BEPLER, CFA
PORTFOLIO MANAGER
[GRAPH]
<TABLE>
<CAPTION>
PORTFOLIO COMPOSITION*
<S> <C>
Other 8.70%
Pharmaceutical 4.51%
Health Care Services 10.84%
Biotechnology 43.53%
Medical Instruments 11.88%
Genomics 20.54%
</TABLE>
* Based on total net assets of the Fund as of 4/30/00.
Funds whose investments are concentrated in a specific industry or sector are
subject to a higher degree of risk than funds whose investments are diversified
and may not be suitable for all investors.
<PAGE>
ORBITEX GROWTH FUND 16
--------------------------------------------------------------------------------
Schedule of Investments
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value (Note 2)
<S> <C> <C>
------------------------------------------------------------------------------------------
COMMON STOCKS--97.84%
ADVERTISING--2.50%
DoubleClick Inc. (a) 11,000 $ 834,625
-----------
BIOTECHNOLOGY--10.71%
Alkermes, Inc. (a) 3,950 210,338
ArQule, Inc. (a) 37,700 445,331
Corvas International, Inc. (a) 57,475 513,683
IVAX Corp. (a) 24,000 657,000
PE Corp-PE Biosystems Group 2,375 142,500
Progenics Pharmaceuticals, Inc. (a) 9,325 428,950
Protein Design Labs, Inc. (a) 6,275 636,912
Titan Pharmaceuticals, Inc. (a) 16,775 536,800
-----------
3,571,514
-----------
BUSINESS SERVICES--0.96%
Tetra Tech, Inc. (a) 13,525 318,683
-----------
COMMUNICATION SERVICES--3.18%
InfoSpace, Inc. (a) 14,780 1,061,389
-----------
COMPUTER EQUIPMENT--7.71%
Avanex Corp. (a) 2,875 350,391
Crossroads Systems, Inc. (a) 7,225 510,266
RADCOM, Ltd. (a) 42,325 272,467
Silicon Storage Technology, Inc. (a) 4,400 429,000
VERITAS Software Corp. (a) 6,525 699,908
Wave Systems Corp., Class A (a) 1,200 23,025
Wave Systems Corp., Class A (144A)(a) 15,000 287,812
-----------
2,572,869
-----------
COMPUTER NETWORKS--4.96%
Akamai Technologies, Inc. (a) 3,008 297,445
Ariba, Inc. (a) 6,500 482,219
Efficient Networks, Inc. (a) 5,575 366,556
Sycamore Networks, Inc. (a) 6,475 508,287
-----------
1,654,507
-----------
COMPUTER SERVICES--2.62%
Computer & Technologies Holdings, Ltd. 206,775 236,263
Numerical Technologies, Inc. (a) 100 4,175
VeriSign, Inc. (a) 4,541 632,902
-----------
873,340
-----------
DRUGS & HEALTH CARE--6.68%
CardioDynamics International Corp. (a) 45,650 253,928
Pharmacyclics, Inc. (a) 13,775 625,041
Schering-Plough Corp. 13,050 526,078
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX GROWTH FUND 17
--------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value (Note 2)
<S> <C> <C>
------------------------------------------------------------------------------------------
DRUGS & HEALTH CARE (Continued)
Sepracor, Inc. (a) 6,100 $ 561,200
Transkaryotic Therapies, Inc. (a) 8,800 263,450
-----------
2,229,697
-----------
EDUCATION--1.83%
Prosoft Training.com (a) 36,450 610,537
-----------
ELECTRIC UTILITIES--1.98%
Calpine Corp. (a) 7,225 661,087
-----------
ELECTRONICS--7.31%
Applied Materials, Inc. (a) 6,550 666,872
Broadcom Corp. (a) 1,925 331,822
E-Tek Dynamics, Inc. (a) 4,675 957,206
Next Level Communications, Inc., Class A (a) 6,065 482,926
-----------
2,438,826
-----------
FINANCIAL SERVICES--0.00% (b)
American International Group, Inc. 1 110
-----------
GENOMICS--1.97%
Maxygen, Inc. (a) 7,325 306,277
Myriad Genetics, Inc. (a) 5,425 349,234
-----------
655,511
-----------
INTERNET--9.55%
724 Solutions, Inc. (a) 6,400 323,200
Aether Systems, Inc. (a) 4,005 666,770
Art Technology Group, Inc. (a) 13,150 798,862
IFX Corp. (a) 13,724 269,334
Optibase, Ltd. (a) 26,700 505,631
Priceline.com, Inc. (a) 9,825 621,431
-----------
3,185,228
-----------
RETAIL--2.53%
Circuit City Stores-Circuit City Group 6,800 399,925
Intimate Brands, Inc. 11,550 444,675
-----------
844,600
-----------
RETAIL FOOD--3.84%
Costco Wholesale Corp. (a) 12,550 678,485
Safeway, Inc. (a) 13,627 601,291
-----------
1,279,776
-----------
SEMICONDUCTOR--16.55%
Applied Micro Circuits Corp. (a) 6,800 876,350
Bookham Technology PLC, ADR (a) 13,375 695,500
Conexant Systems, Inc. (a) 12,275 734,966
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX GROWTH FUND 18
--------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value (Note 2)
<S> <C> <C>
------------------------------------------------------------------------------------------
SEMICONDUCTOR (Continued)
PMC-Sierra, Inc. (a) 5,150 988,156
QLogic Corp. (a) 8,050 $ 807,516
RF Micro Devices, Inc. (a) 7,920 824,175
TelCom Semiconductor, Inc. (a) 24,175 593,798
-----------
5,520,461
-----------
SOFTWARE--10.98%
Actuate Corp. (a) 13,750 411,641
Allaire Corp. (a) 2,725 150,045
HNC Software, Inc. (a) 7,775 384,862
i2 Technologies, Inc. (a) 7,885 1,019,136
Netegrity, Inc. (a) 15,255 676,941
Software.com, Inc. (a) 4,825 390,222
Tibco Software, Inc. (a) 7,050 627,891
-----------
3,660,738
-----------
TELECOMMUNICATIONS--1.98%
International FiberCom, Inc. (a) 36,375 661,570
------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS--(cost $39,336,443) 32,635,068
------------------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
---------
SHORT TERM INVESTMENT (cost $935,000)--2.80%
<S> <C> <C>
COMMERCIAL PAPER--2.80%
CIT Group Holdings, Inc., 5.90% due 5/1/2000 $935,000 935,000
-------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $40,271,443)--100.64% 33,570,068
-------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES--(0.64)% (214,429)
-------------------------------------------------------------------------------------------
NET ASSETS--100.00% $33,355,639
-------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(a) Denotes non-income producing security
(b) Amount shown represents less than 0.01%
ADR--American Depositary Receipt
144A--Security is purchased pursuant to Rule 144A of the Securities Act of 1933 and
may be resold only to qualified institutional buyers.
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX INFO-TECH & COMMUNICATIONS FUND 19
--------------------------------------------------------------------------------
Schedule of Investments
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value (Note 2)
<S> <C> <C>
----------------------------------------------------------------------------------------------
COMMON STOCKS--97.00%
BROADCASTING--2.05%
AT&T Corp.--Liberty Media Group, Class A (a) 44,000 $ 2,197,250
UnitedGlobalCom, Inc., Class A (a) 110,000 5,843,750
------------
8,041,000
------------
COMMUNICATION SERVICES--14.46%
Amdocs, Ltd. (a) 135,000 9,137,812
Arch Communications Group, Inc. (a) 400,000 2,975,000
AT&T Corp., Series A 100,000 4,668,750
AT&T Wireless Group (a) 10,000 318,125
Equant NV, NY Shares (a) 80,000 6,240,000
Ericsson LM Telephone Co., ADR 45,000 3,979,687
Grupo Iusacell SA de CV, ADR (a) 79,470 1,266,553
Metrocall, Inc. (a) 300,000 1,800,000
MRV Communications, Inc. (a) 95,000 6,549,063
NTL, Inc. (a) 110,000 8,415,000
Paging Network, Inc. (a) 1,650,000 2,784,375
Telesp Celular Participacoes SA, ADR 195,000 8,604,375
------------
56,738,740
------------
COMPUTER EQUIPMENT--6.88%
Hewlett-Packard Co. 84,000 11,340,000
Sun Microsystems, Inc. (a) 170,000 15,629,375
------------
26,969,375
------------
COMPUTER NETWORKS--24.19%
3Com Corp. (a) 130,000 5,126,875
Brocade Communications Systems, Inc. (a) 36,000 4,464,000
Cabletron Systems, Inc. (a) 250,000 5,718,750
CIENA Corp. (a) 120,000 14,835,000
Cisco Systems, Inc. (a) 230,000 15,945,469
JDS Uniphase Corp. (a) 97,368 10,095,844
Juniper Networks, Inc. (a) 48,500 10,315,344
Sycamore Networks, Inc. (a) 110,900 8,705,650
Tellabs, Inc. (a) 300,000 16,443,750
TranSwitch Corp. (a) 36,500 3,214,281
------------
94,864,963
------------
COMPUTER SERVICES--2.14%
Numerical Technologies, Inc. (a) 150 6,263
Palm, Inc. (a) 1,400 38,150
VeriSign, Inc. (a) 60,000 8,362,500
------------
8,406,913
------------
ELECTRONICS--6.12%
Bookham Technology PLC, ADR (a) 461,800 24,013,600
------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX INFO-TECH & COMMUNICATIONS FUND 20
--------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value (Note 2)
<S> <C> <C>
----------------------------------------------------------------------------------------------
INTERNET--7.17%
Euro909.com A/S, ADR (a) 136,400 $ 1,312,850
Exodus Communications, Inc. (a) 70,000 6,190,625
Inktomi Corp. (a) 32,000 4,926,000
Priceline.com, Inc. (a) 35,000 2,213,750
VerticalNet, Inc. (a) 80,000 4,320,000
Vignette Corp. (a) 190,000 9,155,625
------------
28,118,850
------------
SEMICONDUCTOR--14.04%
Advanced Micro Devices, Inc. (a) 220,000 19,305,000
Lattice Semiconductor Corp. (a) 100,000 6,737,500
PMC-Sierra, Inc. (a) 30,000 5,756,250
Rambus, Inc. (a) 40,000 9,200,000
RF Micro Devices, Inc. (a) 65,000 6,764,062
Xilinx, Inc. (a) 100,000 7,325,000
------------
55,087,812
------------
SOFTWARE--19.95%
Active Software, Inc. (a) 187,000 7,538,437
BEA Systems, Inc. (a) 170,000 8,202,500
Evolving Systems, Inc. (a) 74,500 633,250
i2 Technologies, Inc. (a) 79,500 10,275,375
Mercator Software, Inc. (a) 62,000 2,282,375
Niku Corp. (a) 10,600 211,338
Oracle Corp. (a) 250,000 19,984,375
Sapient Corp. (a) 48,000 3,801,000
Software Technologies Corp. (a) 25,000 446,875
TIBCO Software Inc. (a) 158,000 14,071,875
webMethods, Inc. (a) 120,200 10,818,000
------------
78,265,400
----------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS--(cost $323,599,225) 380,506,653
----------------------------------------------------------------------------------------------
PREFERRED STOCKS--0.19%
NETWORKING PRODUCTS--0.19%
U.S. Wireless Data, Inc, Series C (a) (b) (c) 75,000 750,000
U.S. Wireless Data, Inc. warrants, expiration date
03/17/2007 (a) (b) (c) 125,000 0
----------------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS (Cost $750,000) 750,000
----------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX INFO-TECH & COMMUNICATIONS FUND 21
--------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value (Note 2)
<S> <C> <C>
----------------------------------------------------------------------------------------------
SHORT TERM INVESTMENT (cost $14,832,000)--3.78%
COMMERCIAL PAPER--3.78%
CIT Group Holdings, Inc., 5.900% due 5/1/2000 $14,832,000 $ 14,832,000
----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $339,181,225)--100.97% 396,088,653
----------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES--(0.97)% (3,831,552)
----------------------------------------------------------------------------------------------
NET ASSETS--100.00% $392,257,101
----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(a) Denotes non-income producing security
(b) Fair valued under the direction of the Board of Trustees
(c) Private Placement Security purchased 4/10/00 as a unit at a
cost of $750,000
ADR--American Depositary Receipt
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX STRATEGIC NATURAL RESOURCES FUND 22
--------------------------------------------------------------------------------
Schedule of Investments
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value (Note 2)
<S> <C> <C>
-------------------------------------------------------------------------------------------
COMMON STOCKS--97.00%
MINING--2.45%
Rio Tinto PLC, ADR 2,275 $ 147,591
----------
NATURAL GAS--20.60%
Apache Corp. 5,850 283,360
Coastal Corp. 2,650 132,997
El Paso Energy Corp. 5,500 233,750
EOG Resources, Inc. 10,600 263,675
Newfield Exploration Co. (a) 3,450 140,156
Western Gas Resources, Inc. 11,350 189,403
----------
1,243,341
----------
OIL & GAS EXPLORATION AND PRODUCTION--25.66%
Barrett Resources Corp. (a) 6,800 215,900
Burlington Resources, Inc. 5,700 224,081
Cabot Oil & Gas Corp., Class A 10,000 186,225
Chieftain International, Inc. (a) 11,175 212,325
Devon Energy Corp. 2,525 121,673
Kerr-Mcgee Corp. 3,000 155,250
Santa Fe Snyder Corp. (a) 20,000 183,750
Union Pacific Resources Group Inc. 13,000 249,438
----------
1,548,642
----------
OIL PRODUCTION--6.72%
Broken Hill Proprietary Co., Ltd., ADR 8,758 185,560
Conoco, Inc., Class A 4,425 105,370
Unocal Corp. 3,550 114,710
----------
405,640
----------
PAPER & RELATED PRODUCTS--16.31%
Abitibi-Consolidated Inc. 26,725 290,634
Bowater, Inc. 3,925 215,875
Canfor Corp. 11,000 133,702
Georgia Pacific Corp. 4,225 155,269
Tembec, Inc., Class A (a) 16,450 188,838
----------
984,318
----------
STEEL--25.26%
AK Steel Holding Corp. 25,516 282,271
Allegheny Technologies, Inc. 13,800 333,787
Bethlehem Steel Corp. 48,750 262,031
Corus Group PLC, ADR 18,150 248,428
Ispat International NV 26,396 308,503
Novamerican Steel, Inc. (a) 9,036 89,231
----------
1,524,251
-------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS--(cost $5,382,526) 5,853,783
-------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX STRATEGIC NATURAL RESOURCES FUND 23
--------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value (Note 2)
<S> <C> <C>
--------------------------------------------------------------------------------------------
SHORT TERM INVESTMENT (cost $117,000)--1.94%
TIME DEPOSIT--1.94%
State Street Bank and Trust Co., 5.500% due 5/1/2000 $117,000 $ 117,000
--------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $5,499,526)--98.94% 5,970,783
--------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES--1.06% 63,669
--------------------------------------------------------------------------------------------
NET ASSETS--100.00% $6,034,452
--------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(a) Denotes non-income producing security
ADR--American Depositary Receipt
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX FOCUS 30 FUND 24
--------------------------------------------------------------------------------
Schedule of Investments
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value (Note 2)
<S> <C> <C>
-------------------------------------------------------------------------------------------
COMMON STOCKS--94.37%
BASIC MATERIALS--6.97%
Alcoa Inc. 7,000 $ 454,125
DuPont (E.I.) de Nemours and Co. 7,650 362,897
International Paper Co. 8,350 306,862
------------
1,123,884
------------
CAPITAL GOODS--13.99%
Caterpillar Inc. 6,000 236,625
General Electric Co. 6,925 1,088,956
Honeywell International Inc. 6,300 352,800
Minnesota Mining & Manufacturing Co. 6,650 575,225
------------
2,253,606
------------
COMMUNICATION SERVICES--4.38%
AT&T Corp. 8,550 399,201
SBC Communications Inc. 7,000 306,688
------------
705,889
------------
CONSUMER CYCLICALS--10.11%
General Motors Corp. 6,500 608,562
The Home Depot, Inc. 8,462 474,401
Wal-Mart Stores Inc. 9,850 545,444
------------
1,628,407
------------
CONSUMER STAPLES--7.22%
Disney (Walt) Co. 11,000 476,437
McDonald's Corp. 7,025 267,828
Procter & Gamble Co. 7,025 418,866
------------
1,163,131
------------
ENERGY--3.83%
Exxon Mobil Corp. 7,950 617,616
------------
FINANCIAL--12.75%
American Express Co. 5,500 825,344
Citigroup Inc. 7,075 420,520
J.P. Morgan & Co. 6,300 808,763
------------
2,054,627
------------
HEALTH CARE--10.70%
Amgen Inc. (a) 13,425 751,800
Johnson & Johnson 6,100 503,250
Merck & Co., Inc. 6,750 469,125
------------
1,724,175
------------
TECHNOLOGY--24.42%
Cisco Systems, Inc. (a) 9,550 662,084
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX FOCUS 30 FUND 25
--------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value (Note 2)
<S> <C> <C>
-------------------------------------------------------------------------------------------
TECHNOLOGY (Continued)
Hewlett-Packard Co. 7,075 $ 955,125
Intel Corp. 8,825 1,119,120
International Business Machines Corp. 6,425 717,191
Microsoft Corp. (a) 6,900 481,275
------------
3,934,795
-------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS--(cost $10,732,407) 15,206,130
-------------------------------------------------------------------------------------------
<CAPTION>
Principal
Amount
---------
SHORT TERM INVESTMENT (cost $943,000)--5.85%
<S> <C> <C>
COMMERCIAL PAPER--5.85%
CIT Group Holdings, Inc., 5.90%, due 5/1/2000 $943,000 943,000
-------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $11,675,407)--100.22% 16,149,130
-------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES--(0.22)% (35,592)
-------------------------------------------------------------------------------------------
NET ASSETS--100.00% $ 16,113,538
-------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(a) Denotes non-income producing security
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX HEALTH & BIOTECHNOLOGY FUND 26
--------------------------------------------------------------------------------
Schedule of Investments
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Shares Value (Note 2)
<S> <C> <C>
------------------------------------------------------------------------------------------
COMMON STOCKS--91.30%
BIOTECHNOLOGY--43.53%
Alkermes, Inc. (a) 100,800 $ 5,367,600
Biogen, Inc. (a) 119,675 7,038,386
Celgene Corp. (a) 84,250 3,965,016
Enzon, Inc. (a) 245,200 9,133,700
ICOS Corp. (a) 202,575 8,153,644
Immune Response Corp. (The) (a) 310,850 2,603,369
Medarex, Inc. (a) 150,900 7,997,700
Progenics Pharmaceuticals, Inc. (a) 138,800 6,384,800
Protein Design Labs, Inc. (a) 89,425 9,076,637
Sepracor Inc. (a) 85,200 7,838,400
Titan Pharmaceuticals, Inc. (a) 246,850 7,899,200
XOMA Ltd. (a) 685,725 2,785,758
------------
78,244,210
------------
GENOMICS--20.54%
Affymetrix, Inc. (a) 40,375 5,453,148
CYTOGEN Corp. (a) 538,907 3,536,577
Genome Therapeutics Corp. (a) 274,800 4,705,950
Maxygen Inc. (a) 133,925 5,599,739
Millenium Pharmaceuticals, Inc. (a) 41,000 3,254,375
Myriad Genetics, Inc. (a) 73,675 4,742,828
PE Corp. - Celera Genomics Group (a) 64,025 5,282,063
Visible Genetics Inc. (a) 118,525 4,348,386
------------
36,923,066
------------
HEALTHCARE SERVICES--10.84%
ChiRex Inc. (a) 420,055 7,140,935
Express Scripts, Inc. (a) 105,500 3,771,625
MedQuist Inc. (a) 241,700 8,565,244
------------
19,477,804
------------
MEDICAL INSTRUMENTS--11.88%
Boston Scientific Corp. (a) 291,925 7,736,013
Coherent, Inc. (a) 90,750 5,246,484
MiniMed Inc. (a) 26,050 3,202,522
PE Corp. - PE Biosystems Group 86,000 5,160,000
------------
21,345,019
------------
PHARMACEUTICAL--4.51%
American Home Products Corp. 144,350 8,110,665
------------------------------------------------------------------------------------------
TOTAL COMMON STOCKS--(cost $194,866,806) $164,100,764
------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX HEALTH & BIOTECHNOLOGY FUND 27
--------------------------------------------------------------------------------
Schedule of Investments (continued)
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount Value (Note 2)
<S> <C> <C>
----------------------------------------------------------------------------------------------
SHORT TERM INVESTMENT (cost $16,941,000)--9.43%
COMMERCIAL PAPER--9.43%
CIT Group Holdings, Inc., 5.90%, due 5/1/2000 $16,941,000 $ 16,941,000
----------------------------------------------------------------------------------------------
TOTAL INVESTMENTS (cost $211,807,806)--100.73% 181,041,764
----------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES--(0.73)% (1,306,330)
----------------------------------------------------------------------------------------------
NET ASSETS--100.00% $179,735,434
----------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<S> <C>
(a) Denotes non-income producing security
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX GROUP OF FUNDS 28
--------------------------------------------------------------------------------
Statements of Assets and Liabilities
April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Info-Tech & Health &
Communications Strategic Natural Focus 30 Biotechnology
Growth Fund Fund Resources Fund Fund Fund
----------- -------------- ----------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in
securities, at value
(Note 2)............... $32,635,068 $381,256,653 $5,853,783 $15,206,130 $164,100,764
Short term investments
(Note 2)............... 935,000 14,832,000 117,000 943,000 16,941,000
--------------------------------------------------------------------------------------------------------
Total investments........ 33,570,068 396,088,653 5,970,783 16,149,130 181,041,764
--------------------------------------------------------------------------------------------------------
Cash..................... 2,940 3,555,436 250 893 8,465
Receivable for securities
sold................... 295,712 -- 353,332 -- 9,630,477
Interest and dividends
receivable............. -- 67,660 3,868 10,307 34,753
Receivable for fund
shares sold............ 347,333 2,808,891 579 225,794 2,002,976
Receivable due from
adviser (Note 3)....... 14,416 -- 14,443 87,258 --
Deferred organizational
expenses (Note 2)...... 9,059 9,023 9,084 -- --
Prepaid expenses and
other assets........... 115 9,283 638 64,857 68,553
--------------------------------------------------------------------------------------------------------
TOTAL ASSETS............. 34,239,643 402,538,946 6,352,977 16,538,239 192,786,988
--------------------------------------------------------------------------------------------------------
LIABILITIES
Payable for securities
purchased.............. 741,466 9,106,460 246,515 -- 11,772,681
Payable to adviser (Note
3)..................... -- 193,231 -- -- 126,355
Payable for fund shares
redeemed............... 60,583 438,197 36,710 130,703 867,092
Payable for distribution
fees................... 36,094 352,063 5,912 1,434 146,670
Payable for trustee fees
(Note 3)............... 750 750 750 675 585
Accrued reserve
liability.............. -- -- -- 256,886 --
Accrued expenses and
other liabilities...... 45,111 191,144 28,638 35,003 138,171
--------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES........ 884,004 10,281,845 318,525 424,701 13,051,554
--------------------------------------------------------------------------------------------------------
COMMITMENTS AND
CONTINGENCIES (NOTE 9)
--------------------------------------------------------------------------------------------------------
NET ASSETS............... $33,355,639 $392,257,101 $6,034,452 $16,113,538 $179,735,434
--------------------------------------------------------------------------------------------------------
NET ASSETS
Paid-in capital.......... $41,070,201 $291,113,004 $5,031,483 $11,363,764 $232,509,174
Undistributed net
investment income
(loss)................. -- -- (38) (256,886) --
Accumulated net realized
gain (loss) on
investments............ (1,013,187) 44,236,669 531,750 532,937 (22,007,698)
Net unrealized
appreciation
(depreciation) on
investments............ (6,701,375) 56,907,428 471,257 4,473,723 (30,766,042)
--------------------------------------------------------------------------------------------------------
NET ASSETS............... $33,355,639 $392,257,101 $6,034,452 $16,113,538 $179,735,434
--------------------------------------------------------------------------------------------------------
CLASS A SHARES:
Net assets............... $20,065,462 $182,181,507 $3,657,761 $ 1,125,554 $ 66,418,135
Net asset value per share
(based on shares of
beneficial interest
outstanding, no par
value per share)....... $ 31.19 $ 58.99 $ 18.62 $ 19.17 $ 17.33
Maximum sales charge
(Note 1)............... 5.75% 5.75% 5.75% 5.75% 5.75%
--------------------------------------------------------------------------------------------------------
Offering price per
share.................. $ 33.09 $ 62.59 $ 19.76 $ 20.34 $ 18.39
--------------------------------------------------------------------------------------------------------
Total shares outstanding
at end of period....... 643,268 3,088,425 196,459 58,706 3,833,466
--------------------------------------------------------------------------------------------------------
CLASS B SHARES:
Net assets............... $12,461,031 $185,507,714 $2,376,691 $ 913,893 $ 74,924,775
Net asset value and
offering price per
share (based on shares
of beneficial interest
outstanding, no par
value per share)....... $ 31.10 $ 58.35 $ 18.58 $ 19.12 $ 17.28
--------------------------------------------------------------------------------------------------------
Total shares outstanding
at end of period....... 400,717 3,179,493 127,917 47,801 4,335,313
--------------------------------------------------------------------------------------------------------
CLASS C SHARES:
Net assets............... $ 829,146 $ 24,567,880 $ -- $ -- $ 38,392,524
Net asset value and
offering price per
share (based on shares
of beneficial interest
outstanding, no par
value per share)....... $ 31.19 $ 58.38 $ -- $ -- $ 17.28
--------------------------------------------------------------------------------------------------------
Total shares outstanding
at end of period....... 26,583 420,800 -- -- 2,221,980
--------------------------------------------------------------------------------------------------------
CLASS D SHARES:
Net assets............... $ -- $ -- $ -- $14,074,091 $ --
Net asset value and
offering price per
share (based on shares
of beneficial interest
outstanding, no par
value per share)....... $ -- $ -- $ -- $ 19.21 $ --
--------------------------------------------------------------------------------------------------------
Total shares outstanding
at end of period....... -- -- -- 732,682 --
--------------------------------------------------------------------------------------------------------
INVESTMENTS, AT COST..... $40,271,443 $339,181,225 $5,499,526 $11,675,407 $211,807,806
--------------------------------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
29
ORBITEX GROUP OF FUNDS
--------------------------------------------------------------------------------
Statements of Operations
Year Ended April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Info-Tech & Health &
Communications Strategic Natural Focus 30 Focus 30 Biotechnology
Growth Fund Fund Resources Fund Fund(1) Fund(2)(a) Fund(3)
----------- -------------- ----------------- ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Interest Income.......... $ 25,924 $ 704,460 $ 20,961 $ 8,822 $ 10,114 $ 227,808
Dividend income.......... 12,271 152,379 74,804 103,661 379,099 56,256
Foreign taxes withheld... (880) -- (1,296) -- -- --
---------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT
INCOME................. 37,315 856,839 94,469 112,483 389,213 284,064
---------------------------------------------------------------------------------------------------------------------
EXPENSES
Investment adviser fee
(Note 3)............... 93,179 2,370,726 79,206 64,077 53,750 533,345
Registration fees........ 67,842 137,197 31,606 35,600 28,454 117,965
Transfer agent fee (Note
3)..................... 62,614 171,896 55,732 61,077 40,559 183,707
Professional fees........ 44,786 97,771 47,664 28,054 197,387 37,052
Distribution fees
(Note 3):
Class A Shares......... 36,418 384,481 20,172 1,009 34 64,591
Class B Shares......... 32,409 890,333 12,934 1,155 16 184,847
Class C Shares......... 784 45,047 -- -- -- 80,351
Administration fee
(Note 3)............... 22,318 153,932 15,645 19,451 23,958 71,546
Custodian fee............ 15,421 355,990 18,893 28,892 36,791 63,244
Printing expense......... 12,067 159,457 8,069 12,214 34,454 12,579
Amortization of
organizational expenses
(Note 2)............... 4,052 4,088 4,037 -- -- --
Trustees' fee (Note 3)... 2,875 4,253 3,078 1,655 24,848 2,872
Reserve expense (Notes 2
and 3)................. -- -- -- 251,000 474,938 --
General operating expense
(Note 3)............... -- -- -- -- 81,875 --
Miscellaneous expense.... 3,784 18,196 4,567 2,459 10,151 726
---------------------------------------------------------------------------------------------------------------------
Total expenses before
waivers and
reimbursements......... 398,549 4,793,367 301,603 506,643 1,007,215 1,352,825
Expenses waived and
reimbursed (Note 3).... (130,525) (454,223) (167,401) (193,994) (295,957) (340,354)
---------------------------------------------------------------------------------------------------------------------
NET EXPENSES............. 268,024 4,339,144 134,202 312,649 711,258 1,012,471
---------------------------------------------------------------------------------------------------------------------
NET INVESTMENT LOSS...... (230,709) (3,482,305) (39,733) (200,166) (322,045) (728,407)
---------------------------------------------------------------------------------------------------------------------
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss)
on:
Investments............ (765,893) 56,211,808 1,170,785 933,012 3,402,567 (22,007,698)
Written options........ (228) -- 3,201 -- -- --
---------------------------------------------------------------------------------------------------------------------
Total net realized gain
(loss)................. (766,121) 56,211,808 1,173,986 933,012 3,402,567 (22,007,698)
---------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation
(depreciation) on
investments............ (6,842,236) 48,485,153 11,795 (577,835) 2,685,880 (30,766,042)
---------------------------------------------------------------------------------------------------------------------
NET REALIZED AND
UNREALIZED GAIN
(LOSS)................. (7,608,357) 104,696,961 1,185,781 355,177 6,088,447 (52,773,740)
---------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE)
IN NET ASSETS RESULTING
FROM OPERATIONS........ $(7,839,066) $101,214,656 $1,146,048 $ 155,011 $5,766,402 $(53,502,147)
---------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the six months ended April 30, 2000.
(2) For the year ended October 31, 1999.
(3) For the period July 15, 1999 (commencement of operations) through April 30,
2000.
(a) This information prior to July 12, 1999 reflects the operations of the ASM
Index 30 Fund, Inc.
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
30
ORBITEX GROUP OF FUNDS
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
Year Ended April 30, 2000
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Info-Tech & Health &
Communications Strategic Natural Focus 30 Focus 30 Biotechnology
Growth Fund Fund Resources Fund Fund* Fund** Fund***
----------- -------------- ----------------- -------------- --------------- -------------
<S> <C> <C> <C> <C> <C> <C>
INCREASE (DECREASE) IN
NET ASSETS:
FROM OPERATIONS:
Net investment loss...... $ (230,709) $ (3,482,305) $ (39,733) $ (200,166) $ (322,045) $ (728,407)
Net realized gain (loss)
on investments......... (766,121) 56,211,808 1,173,986 933,012 3,402,567 (22,007,698)
Net change in unrealized
appreciation
(depreciation) on
investments............ (6,842,236) 48,485,153 11,795 (577,835) 2,685,880 (30,766,042)
-------------------------------------------------------------------------------------------------------------------------
Net increase (decrease)
in net assets resulting
from operations........ (7,839,066) 101,214,656 1,146,048 155,011 5,766,402 (53,502,147)
-------------------------------------------------------------------------------------------------------------------------
DISTRIBUTIONS TO
SHAREHOLDERS:
From net realized gains
Class A................ (156,791) (6,961,619) -- (36,322) -- --
Class B................ (10,977) (6,343,511) -- (6,378) -- --
Class D................ -- -- -- (2,501,434) (1,720,263) --
In excess of net realized
gains
Class A................ (141,124) -- -- -- -- --
Class B................ (9,881) -- -- -- -- --
-------------------------------------------------------------------------------------------------------------------------
Total dividends and
distributions to
shareholders........... (318,773) (13,305,130) -- (2,544,134) (1,720,263) --
-------------------------------------------------------------------------------------------------------------------------
Fund Share Transactions
(Note 6)............... 40,037,615 251,108,437 194,396 4,054 (15,082,593) 233,237,581
-------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease)
in Net Assets.......... 31,879,776 339,017,963 1,340,444 (2,385,069) (11,036,454) 179,735,434
-------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of period...... 1,475,863 53,239,138 4,694,008 18,498,607 29,535,061 --
-------------------------------------------------------------------------------------------------------------------------
End of period............ $33,355,639 $392,257,101 $6,034,452 $16,113,538 $ 18,498,607 $179,735,434
-------------------------------------------------------------------------------------------------------------------------
Undistributed net
investment income
(loss) at end of
period................. $ -- $ -- $ (38) $ (256,886) $ -- $ --
-------------------------------------------------------------------------------------------------------------------------
</TABLE>
* For the six months ended April 30, 2000.
** For the year ended October 31, 1999. Information prior to July 12, 1999
reflects the operations of the ASM Index 30 Fund, Inc.
*** For the period July 15, 1999 (commencement of operations) through April 30,
2000.
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX GROUP OF FUNDS 31
--------------------------------------------------------------------------------
Statements of Changes in Net Assets
Year Ended April 30, 1999
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Info-Tech &
Communications Strategic Natural
Growth Fund Fund Resources Fund Focus 30 Fund*
----------- -------------- ----------------- --------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss)............................. $ (9,228) $ (142,509) $ (531) $ 527,096
Net realized gain (loss) on investments and foreign
currency transactions.................................. 171,323 5,142,360 (319,476) 3,568,516
Net change in unrealized appreciation (depreciation) on
investments and foreign currency....................... (14,256) 8,116,172 67,879 592,550
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
operations............................................. 147,839 13,116,023 (252,128) 4,688,162
---------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income:
Class A................................................ (12,649) -- (107,147) --
Class B................................................ (425) -- (1,462) --
Class D................................................ -- -- -- (453,542)
Net realized gains:
Class A................................................ (41,958) (132,847) (158) --
Class B................................................ (1,304) (25,118) (2) --
Class D................................................ -- -- -- (1,846,825)
---------------------------------------------------------------------------------------------------------------------------------
Total dividends and distributions to shareholders........ (56,336) (157,965) (108,769) (2,300,367)
---------------------------------------------------------------------------------------------------------------------------------
Fund Share Transactions (Note 6)......................... 493,720 37,840,738 (642,929) 6,020,444
---------------------------------------------------------------------------------------------------------------------------------
Total Increase (Decrease) in Net Assets.................. 585,223 50,798,796 (1,003,826) 8,408,239
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS:
Beginning of year........................................ 890,640 2,440,342 5,697,834 21,126,822
---------------------------------------------------------------------------------------------------------------------------------
End of year.............................................. $1,475,863 $53,239,138 $ 4,694,008 $29,535,061
---------------------------------------------------------------------------------------------------------------------------------
Undistributed net investment income (loss) at end of
year................................................... $ -- $ -- $ (198) $ --
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<C> <S>
* For the year ended October 31, 1998
</TABLE>
--------------------------------------------------------------------------------
See Notes to Financial Statements.
<PAGE>
ORBITEX GROWTH FUND 32
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class A Shares
--------------------------------------------------------------
Year Ended Year Ended Period Ended
April 30, 2000 (b) April 30, 1999 (b) April 30, 1998 (a)
------------------ ------------------ ------------------
<S> <C> <C> <C>
Net asset value, beginning of period........................ $ 18.66 $17.93 $15.00
------- ------ ------
Income (loss) from investment operations:
Net investment income (loss).............................. (0.57) (0.15) 0.26(e)
Net realized and unrealized gain on investments and
foreign currency transactions............................ 14.12(f) 1.70 2.67
------- ------ ------
Total income from investment operations................... 13.55 1.55 2.93
------- ------ ------
Less distributions from net investment income............... -- (0.19) --
Less distributions from net realized gains.................. (0.54) (0.63) --
Less distributions in excess of net realized gains.......... (0.48) -- --
------- ------ ------
Total distributions from net investment income and net
realized gains.......................................... (1.02) (0.82) --
------- ------ ------
Net asset value, end of period.............................. $ 31.19 $18.66 $17.93
======= ====== ======
Total Return(c)............................................. 73.29% 9.07% 19.53%
======= ====== ======
Ratios and Supplemental Data:
Net assets, end of period (in 000's)...................... $20,065 $1,422 $ 891
Ratio of expenses to average net assets(d)................ 2.00% 1.93% 2.11%
Ratio of total expenses to average net assets before
waivers and reimbursements(d)........................... 3.21% 23.92% 50.13%
Ratio of net investment income (loss) to average net
assets(d)............................................... (1.68)% (0.85)% 4.41% (e)
Portfolio turnover rate................................... 254% 957% 448%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) The commencement of investment operations was October 22,
1997.
(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) Per share amounts are not in accord with the aggregate net
loss on investments for the period due to the timing of
sales and redemptions for Fund shares in relation to
fluctuating market values of the Fund's investments.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
33
ORBITEX GROWTH FUND
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class B Shares
--------------------------------------------
Year Ended Period Ended
April 30, 2000 (b) April 30, 1999 (a)(b)
------------------- ---------------------
<S> <C> <C>
Net asset value, beginning of period........................ $ 18.61 $16.46
------- ------
Income (loss) from investment operations:
Net investment loss....................................... (0.95) (0.12)
Net realized and unrealized gain on investments and
foreign currency transactions........................... 14.46(e) 3.11
------- ------
Total income from investment operations................... 13.51 2.99
------- ------
Less distributions from net investment income............... -- (0.21)
Less distributions from net realized gains.................. (0.54) (0.63)
Less distributions in excess of net realized gains.......... (0.48) --
------- ------
Total distributions from net investment income and net
realized gains.......................................... (1.02) (0.84)
------- ------
Net asset value, end of period.............................. $ 31.10 $18.61
======= ======
Total Return(c)............................................. 73.28% 18.61%
======= ======
Ratios and Supplemental Data:
Net assets, end of period (in 000's)...................... $12,461 $ 54
Ratio of expenses to average net assets(d)................ 2.60% 2.03%
Ratio of total expenses to average net assets before
waivers, and reimbursements(d).......................... 3.20% 18.75%
Ratio of net investment income (loss) to average net
assets(d)............................................... (2.34)% (1.05)%
Portfolio turnover rate................................... 254% 957%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) The commencement of investment operations was September 16,
1998.
(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) Per share amounts are not in accord with the aggregate net
loss on investments for the period due to the timing of
sales and redemptions for Fund shares in relation to
fluctuating market values of the Fund's investments.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
ORBITEX GROWTH FUND 34
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class C Shares
---------------------
Period Ended
April 30, 2000 (a)(b)
---------------------
<S> <C>
Net asset value, beginning of period........................ $51.65
------
Income (loss) from investment operations:
Net investment loss....................................... (0.11)
Net realized and unrealized loss on investments........... (20.35)
------
Total loss from investment operations..................... (20.46)
------
Less distributions from net investment income............... --
Less distributions from net realized gains.................. --
------
Total distributions from net investment income and net
realized gains.......................................... --
------
Net asset value, end of period.............................. $31.19
======
Total Return(c)............................................. (39.61)%
======
Ratios and Supplemental Data:
Net assets, end of period (in 000's)...................... $ 829
Ratio of expenses to average net assets(d)................ 2.60%
Ratio of total expenses to average net assets before
waivers and reimbursements(d)........................... 4.23%
Ratio of net investment income (loss) to average net
assets(d)............................................... (2.41)%
Portfolio turnover rate................................... 254%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) The commencement of investment operations was March 14,
2000.
(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
and Administrator 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.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
ORBITEX INFO-TECH & COMMUNICATIONS FUND 35
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class A Shares
----------------------------------------------------------
Year Ended Year Ended Period Ended
April 30, 2000 (b) April 30, 1999 April 30, 1998 (a)
------------------ -------------- ------------------
<S> <C> <C> <C>
Net asset value, beginning of period........................ $ 30.62 $ 19.62 $15.00
-------- ------- ------
Income (loss) from investment operations:
Net investment income (loss).............................. (0.77) (0.08) 0.00
Net realized and unrealized gain on investments and
foreign currency transactions........................... 32.60 11.26 4.62
-------- ------- ------
Total income from investment operations................... 31.83 11.18 4.62
-------- ------- ------
Less distributions from net investment income............... -- -- --
Less distributions from net realized gains.................. (3.46) (0.18) --
-------- ------- ------
Total distributions from net investment income and net
realized gains.......................................... (3.46) (0.18) --
-------- ------- ------
Net asset value, end of period.............................. $ 58.99 $ 30.62 $19.62
======== ======= ======
Total Return(c)............................................. 106.44% 57.43% 30.80%
======== ======= ======
Ratios and Supplemental Data:
Net assets, end of period (in 000's)...................... $182,182 $34,335 $2,440
Ratio of expenses to average net assets(d)................ 2.00% 2.07% 2.88%
Ratio of total expenses to average net assets before
waivers and reimbursements(d)........................... 2.29% 4.04% 39.06%
Ratio of net investment income (loss) to average net
assets(d)............................................... (1.55)% (0.70)% (1.27)%
Portfolio turnover rate................................... 222% 360% 76%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) The commencement of investment operations was October 22,
1997.
(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.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
36
ORBITEX INFO-TECH & COMMUNICATIONS FUND
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class B Shares
----------------------------------------
Year Ended Period Ended
April 30, 2000 (b) April 30, 1999 (a)
------------------ ------------------
<S> <C> <C>
Net asset value, beginning of period........................ $ 30.48 $ 18.23
-------- -------
Income (loss) from investment operations:
Net investment loss....................................... (1.10) (0.08)
Net realized and unrealized gain on investments and
foreign currency transactions........................... 32.43 12.51
-------- -------
Total income from investment operations................... 31.33 12.43
-------- -------
Less distributions from net investment income............... -- --
Less distributions from net realized gains.................. (3.46) (0.18)
-------- -------
Total distributions from net investment income and net
realized gains.......................................... (3.46) (0.18)
-------- -------
Net asset value, end of period.............................. $ 58.35 $ 30.48
======== =======
Total Return(c)............................................. 105.25% 68.67%
======== =======
Ratios and Supplemental Data:
Net assets, end of period (in 000's)...................... $185,508 $18,904
Ratio of expenses to average net assets(d)................ 2.60% 2.41%
Ratio of total expenses to average net assets before
waivers, and reimbursements(d).......................... 2.80% 4.41%
Ratio of net investment income (loss) to average net
assets(d)............................................... (2.15)% (1.40)%
Portfolio turnover rate................................... 222% 360%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) The commencement of investment operations was September 16,
1998.
(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.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
37
ORBITEX INFO-TECH & COMMUNICATIONS FUND
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class C Shares
---------------------
Period Ended
April 30, 2000 (a)(b)
---------------------
<S> <C>
Net asset value, beginning of period........................ $ 53.75
-------
Income (loss) from investment operations:
Net investment loss....................................... (0.42)
Net realized and unrealized gain on investments........... 5.05
-------
Total income from investment operations................... 4.63
-------
Less distributions from net investment income............... --
Less distributions from net realized gains.................. --
-------
Total distributions from net investment income and net
realized gains.......................................... --
-------
Net asset value, end of period.............................. $ 58.38
=======
Total Return(c)............................................. 8.61%
=======
Ratios and Supplemental Data:
Net assets, end of period (in 000's)...................... $24,568
Ratio of expenses to average net assets(d)................ 2.60%
Ratio of total expenses to average net assets before
waivers and reimbursements(d)........................... 2.93%
Ratio of net investment income (loss) to average net
assets(d)............................................... (2.20)%
Portfolio turnover rate................................... 222%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) The commencement of investment operations was January 14,
2000.
(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
and Administrator 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.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
ORBITEX STRATEGIC NATURAL RESOURCES FUND 38
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class A Shares
--------------------------------------------------------------
Year Ended Year Ended Period Ended
April 30, 2000 (b) April 30, 1999 (b) April 30, 1998 (a)
------------------ ------------------ ------------------
<S> <C> <C> <C>
Net asset value, beginning of period........................ $14.92 $16.54 $15.00
------ ------ ------
Income (loss) from investment operations:
Net investment income (loss).............................. (0.07) 0.00 (f) 0.38 (e)
Net realized and unrealized gain (loss) on investments and
foreign currency transactions........................... 3.77 (1.25) 1.22
------ ------ ------
Total income (loss) from investment operations............ 3.70 (1.25) 1.60
------ ------ ------
Less distributions from net investment income............... -- (0.37) (0.03)
Less distributions from net realized gains.................. -- 0.00 (f) (0.03)
------ ------ ------
Total distributions from net investment income and net
realized gains.......................................... -- (0.37) (0.06)
------ ------ ------
Net asset value, end of period.............................. $18.62 $14.92 $16.54
====== ====== ======
Total Return(c)............................................. 24.80% (6.86)% 10.74%
====== ====== ======
Ratios and Supplemental Data:
Net assets, end of period (in 000's)...................... $3,658 $4,286 $5,698
Ratio of expenses to average net assets(d)................ 2.00% 2.19% 2.45%
Ratio of total expenses to average net assets before
waivers and reimbursements(d)........................... 4.80% 8.76% 9.27%
Ratio of net investment income (loss) to average net
assets(d)............................................... (0.48)% 0.00% 6.12 % (e)
Portfolio turnover rate................................... 735% 921% 519%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) The commencement of investment operations was October 23,
1997.
(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.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
39
ORBITEX STRATEGIC NATURAL RESOURCES FUND
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class B Shares
--------------------------------------------
Year Ended Period Ended
April 30, 2000 (b) April 30, 1999 (a)(b)
------------------ ----------------------
<S> <C> <C>
Net asset value, beginning of period........................ $14.98 $12.22
------ ------
Income (loss) from investment operations:
Net investment loss....................................... (0.18) (0.05)
Net realized and unrealized gain on investments and
foreign currency transactions........................... 3.78 3.21 (e)
------ ------
Total income (loss) from investment operations............ 3.60 3.16
------ ------
Less distributions from net investment income............... -- (0.40)
Less distributions from net realized gains.................. -- 0.00 (f)
------ ------
Total distributions from net investment income and net
realized gains.......................................... -- (0.40)
------ ------
Net asset value, end of period.............................. $18.58 $14.98
====== ======
Total Return(c)............................................. 24.03% 26.92%
====== ======
Ratios and Supplemental Data:
Net assets, end of period (in 000's)...................... $2,377 $ 408
Ratio of expenses to average net assets(d)................ 2.60% 2.40%
Ratio of total expenses to average net assets before
waivers and reimbursements(d)........................... 4.67% 8.49%
Ratio of net investment loss to average net assets(d)..... (1.12)% (0.66)%
Portfolio turnover rate................................... 735% 921%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) The commencement of investment operations was September 21,
1998.
(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) 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.
(f) Amount represents less than $0.01 per share.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
ORBITEX FOCUS 30 FUND 40
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class A Shares Class B Shares
------------------------------------------ ------------------------------------------
Period Ended Period Ended Period Ended Period Ended
April 30, 2000 (b) October 31, 1999 (a) April 30, 2000 (b) October 31, 1999 (a)
------------------ -------------------- ------------------ --------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period............................. $21.96 $22.76 $21.94 $22.76
------ ------ ------ ------
Income (loss) from investment
operations:
Net investment loss................ (0.71) (0.08) (1.22) (0.10)
Net realized and unrealized gain
(loss) on investments............ 1.17 (0.72) 1.65 (0.72)
------ ------ ------ ------
Total income (loss) from investment
operations....................... 0.46 (0.80) 0.43 (0.82)
------ ------ ------ ------
Less distributions from net
investment income.................. -- -- --
Less distributions in excess of net
income............................. -- -- -- --
Less distributions from net realized
gains.............................. (3.25) -- (3.25) --
------ ------ ------ ------
Total distributions from net
investment income and net
realized gains................... (3.25) -- (3.25) --
------ ------ ------ ------
Net asset value, end of period....... $19.17 $21.96 $19.12 $21.94
====== ====== ====== ======
Total Return(c)...................... 1.36% (3.51)% 1.22% (3.60)%
====== ====== ====== ======
Ratios and Supplemental Data:
Net assets, end of period (in
000's)........................... $1,126 $ 60 $ 914 $ 10
Ratio of expenses to average net
assets(d)(e)..................... 8.35% 3.58% 13.22% 4.58%
Ratio of total expenses to average
net assets before waivers and
reimbursements(d)................ 10.75% 6.22% 15.62% 7.28%
Ratio of net investment income
(loss) to average net
assets(d)........................ (7.19)% (2.60)% (12.23)% (3.53)%
Portfolio turnover rate............ 30% 61% 30% 61%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) The commencement of investment operations was July 12, 1999
for Class A and B shares.
(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 Advisor,
Administrator and Custodian 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.
(e) Ratio includes amounts relating to the general reserve
expense recognized in the period (see Note 3). If such
expenses had not been incurred, the ratios of expenses to
average net assets for Classes A and B would be 1.13% and
1.00%, and 1.74% and 1.60%, respectively.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
41
ORBITEX FOCUS 30 FUND
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class D Shares (a)
------------------------------------------------------------------------------------------
Year Ended October 31
Period Ended ------------------------------------------------------------------
April 30, 2000 (b) 1999 1998 1997 1996 1995 (g)
------------------ ---------- ---------- ---------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period........................... $ 21.97 $ 19.02 $ 17.21 $ 14.13 $11.37 $ 9.78
------- ------- ------- ------- ------ ------
Income (loss) from investment
operations:
Net investment income (loss)..... (0.21) (0.27) 0.32 0.18 0.08 --
Net realized and unrealized gain
on investments................. 0.70 4.62 2.54 3.34 2.76 1.77
------- ------- ------- ------- ------ ------
Total income from investment
operations..................... 0.49 4.35 2.86 3.52 2.84 1.77
------- ------- ------- ------- ------ ------
Less distributions from net
investment income................ -- -- (0.27) (0.18) (0.07) (0.05)
Less distributions in excess of net
income........................... -- -- -- (0.11) (0.01) (0.13)
Less distributions from net
realized gains................... (3.25) (1.40) (0.78) (0.15) -- --
------- ------- ------- ------- ------ ------
Total distributions from net
investment income and net
realized gains................. (3.25) (1.40) (1.05) (0.44) (0.08) (0.18)
------- ------- ------- ------- ------ ------
Net asset value, end of period..... $ 19.21 $ 21.97 $ 19.02 $ 17.21 $14.13 $11.37
======= ======= ======= ======= ====== ======
Total Return(c).................... 1.50% 24.08% 17.13% 25.18% 25.01% 18.10%
======= ======= ======= ======= ====== ======
Ratios and Supplemental Data:
Net assets, end of period (in
000's)......................... $14,074 $18,429 $29,535 $21,127 $9,315 $9,704
Ratio of expenses to average net
assets......................... 3.38%(d)(e) 3.11%(e) 0.18% 0.42% 1.86% 3.01%(f)
Ratio of total expenses to
average net assets before
waivers and reimbursements..... 5.65%(d) 4.41% 0.91% 1.05% 2.59% 5.77%
Ratio of net investment income
(loss) to average net assets... (2.06)%(d) (1.41)% 1.60% 1.51% 0.53% 0.04%
Portfolio turnover rate.......... 30% 61% 196% 265% 391% 340%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) This information prior to July 12, 1999 reflects the
operations of the ASM Index 30 Fund, Inc., which was
reorganized into Class D shares of the Orbitex Focus 30
Fund.
(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 Advisor
and Administrator not absorbed a portion of the expenses,
total returns would have been lower.
(d) Annualized.
(e) Ratio includes amounts relating to the general operating
expense and general reserve expense recognized as a result
of the termination of the investment advisory agreement with
the former Adviser (see Note 3). If such expenses had not
been incurred, the ratio of expense to average net assets
would be 0.70% and 1.03%, respectively.
(f) Includes $50,460 of interest expense not subject to expense
reimbursement agreement.
(g) Audited by predecessor auditor.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
ORBITEX HEALTH & BIOTECHNOLOGY FUND 42
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data based on a share outstanding throughout each period indicated
<TABLE>
<CAPTION>
Class A Shares Class B Shares Class C Shares
--------------------- --------------------- ---------------------
Period Ended Period Ended Period Ended
April 30, 2000 (a)(c) April 30, 2000 (a)(c) April 30, 2000 (b)(c)
--------------------- --------------------- ---------------------
<S> <C> <C> <C>
Net asset value, beginning of period.................. $ 10.00 $ 10.00 $ 16.33
------- ------- -------
Income (loss) from investment operations:
Net investment income (loss)........................ (0.21) (0.31) (0.12)
Net realized and unrealized gain (loss) on
investments and foreign currency related
transactions(f)................................... 7.54 7.59 1.07
------- ------- -------
Total income (loss) from investment operations...... 7.33 7.28 0.95
------- ------- -------
Less distributions from net investment income......... -- -- --
Less distributions from net realized gains............ -- -- --
------- ------- -------
Total distributions from net investment income and
net realized gains................................ -- -- --
------- ------- -------
Net asset value, end of period........................ $ 17.33 $ 17.28 $ 17.28
======= ======= =======
Total Return(d)....................................... 73.30% 72.80% 5.82%
======= ======= =======
Ratios and Supplemental Data:
Net assets, end of period (in 000's)................ $66,418 $74,925 $38,393
Ratio of expenses to average net assets(e).......... 2.00% 2.60% 2.60%
Ratio of total expenses to average net assets before
waivers and reimbursements(e)..................... 3.02% 3.37% 3.00%
Ratio of net investment income (loss) to average net
assets(e)......................................... (1.33)% (1.94)% (1.94)%
Portfolio turnover rate............................. 144% 144% 144%
</TABLE>
---------------
<TABLE>
<C> <S>
(a) The commencement of investment operations was July 15, 1999
for Class A and B shares.
(b) The commencement of investment operations was January 18,
2000 for Class C shares.
(c) Per share numbers have been calculated using the average
shares method, which more appropriately presents the per
share data for the period.
(d) 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
and Administrator not absorbed a portion of the expenses,
total returns would have been lower. Total returns for
periods less than one year are not annualized.
(e) Annualized for periods less than one year.
(f) Per share amounts are not in accord with the aggregate net
loss on investments for the period due to the timing of
sales and redemptions for Fund shares in relation to
fluctuating market values of the Fund's investments.
</TABLE>
--------------------------------------------------------------------------------
<PAGE>
ORBITEX GROUP OF FUNDS 43
--------------------------------------------------------------------------------
Notes to Financial Statements
April 30, 2000
------------------------------------------
------------------------------------------
1. ORGANIZATION
Orbitex Group of Funds (the "Trust" or the "Funds") 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 six funds (collectively the "Funds" and each individually a
"Fund"), only five of which are currently operational, as follows: Growth Fund,
Info-Tech & Communications Fund, Strategic Natural Resources Fund (which will
change its name effective June 5, 2000, to Energy & Basic Materials Fund),
Focus 30 Fund and Health & Biotechnology Fund. Each Fund operates as a
diversified investment company, except Health & Biotechnology Fund, which
operates as a non-diversified investment company. The primary objective of the
Growth Fund is to provide long-term growth of capital through selective
investment in securities of companies of all sizes that offer potential for
growth. The primary objective of the Info-Tech & Communications Fund is
long-term growth of capital through selective investment in the securities of
communications, information and related technology companies. The primary
objective of the Strategic Natural Resources Fund is long-term growth of capital
through selective investment in the securities of companies engaged in natural
resources industries and industries supportive to natural resource industries.
The primary objective of the Focus 30 Fund is long-term growth of capital and
current income through focused investment in the securities of some or all of
the 30 companies listed on the New York Stock Exchange that make up the Dow
Jones Industrial Average. The Focus 30 Fund is not an index fund. The primary
objective of the Health & Biotechnology Fund is long-term growth of capital
through selective investment in the securities of companies engaged in the
healthcare, health products, pharmaceuticals, medical research and biotechnology
research development and implementation and other areas related to the health
industry. Prior to the close of business on July 9, 1999, the Focus 30 Fund
operated as a separate fund called the ASM Index 30 Fund ("ASM"). On July 9,
1999, ASM was reorganized as a new portfolio of the Trust and existing
shareholders of ASM received Class D shares of the Focus 30 Fund in exchange for
their shares of ASM.
All Funds currently 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 eight years. The Growth Fund, the Info-Tech &
Communications Fund and the Health & Biotechnology Fund offer Class C Shares.
Class C Shares are offered subject to a contingent deferred sales charge. The
Focus 30 Fund also offers Class D shares which are only available to
shareholders who previously were shareholders of ASM at the time of the
reorganization as of the close of business on July 9, 1999 (see Note 10),
employees of Orbitex Financial Services Group, Inc. ("OFSG") and its affiliates
and certain institutional investors. Class D Shares are offered at net asset
value.
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
<PAGE>
ORBITEX GROUP OF FUNDS 44
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
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 are
valued at fair value as determined in good faith by or under the direction of
the Trust's Board of Trustees ("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 Trust 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 versus
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.
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
charged 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.
<PAGE>
ORBITEX GROUP OF FUNDS 45
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
RESERVE EXPENSE
On December 23, 1998, at a meeting of the independent members of the ASM Board,
the Directors voted to notify Vector Index Advisors, Inc. ("Vector"), the prior
adviser, of the termination of its advisory agreement which became effective on
February 28, 1999. During this interim period, the Directors solicited proposals
from other funds and advisers and considered alternative arrangements for the
Fund. Such alternatives included the approval of a new advisory relationship
with another adviser, the reorganization of the Fund with another fund or, in
the absence of such options, the termination of the Fund and distribution of its
assets to the shareholders. The Directors established an expense reserve to
cover the cost of these extraordinary items (see Note 3). Prior to the Fund's
reorganization as of the close of business on July 9, 1999, certain legal
proceedings were initiated against the Fund (see Note 9) which caused the
directors to re-evaluate and increase the reserve expense for the ongoing legal
fees associated with defending the claims. Included in the reserve expense
account for the period ended April 30, 2000 and year ended October 31, 1999 are
legal expenses related to the Fund's defense in these suits.
DISTRIBUTIONS TO SHAREHOLDERS
Income will normally be declared and distributed annually for each of the Funds,
except for the Focus 30 Fund, which will normally declare and distribute income
quarterly. All Funds declare and pay net realized capital gain distributions
annually. The character of income and gains to be distributed is determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to the timing of the
recording of certain expenses and realized losses.
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 applicable Fund, 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.
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.
<PAGE>
ORBITEX GROUP OF FUNDS 46
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
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 Info-Tech & Communications Fund, Strategic Natural Resources Fund and Health
& Biotechnology 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 Orbitex
Management, Inc. (the "Adviser"). As compensation for the services rendered,
facilities furnished, and expenses borne by the Adviser, the Funds pay the
Adviser a fee accrued daily and paid monthly, at the annualized rate of 0.75%
for the Growth Fund and the Focus 30 Fund, and 1.25% for the Info-Tech &
Communications Fund, Strategic Natural Resources Fund and Health & Biotechnology
Fund.
Except for the Focus 30 Fund, 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 custody credits, to an annualized
rate of 2.00%, 2.60% and
<PAGE>
ORBITEX GROUP OF FUNDS 47
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
2.60% of the average daily net assets of each Fund's Class A, Class B and
Class C shares, respectively. These limits will remain in effect until
December 31, 2000. Prior to July 7, 1999, the limits for Class B shares of the
Growth Fund, Info-Tech & Communications Fund and Strategic Natural Resources
Fund were 2.00%, 2.40% and 2.40%, respectively.
Effective January 1, 2000, 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 of the Focus 30 Fund, net of waivers and custody credits and
excluding extraordinary or non-recurring expenses, to an annualized rate of
1.15%, 1.75% and 0.75% of the average daily net assets of the Fund's Class A,
Class B and Class D shares, respectively. These limits will remain in effect
until December 31, 2000. For the period July 12, 1999 to January 1, 2000, the
expense limits for Class A, Class B and Class D shares were 1.00%, 1.60% and
0.60%, respectively. Under the prior investment advisory agreement in effect
through February 28, 1999, Vector agreed to limit expenses of the Focus 30 Fund
to 0.18% of the Fund's average daily net assets.
Fees waived and/or expenses reimbursed by the Adviser for the period ended April
30, 2000 amounted to $130,525, $454,223, $167,401, $151,335 and $131,989 for the
Growth Fund, Info-Tech & Communications Fund, Strategic Natural Resources Fund,
Focus 30 Fund and Health & Biotechnology Fund, respectively.
For the period July 12, 1999 through October 31, 1999, the Adviser waived fees
and reimbursed expenses of approximately $129,000 for the Focus 30 Fund. For the
period November 1, 1999 through February 28, 1999, Vector waived fees and
expenses of approximately $155,000 which were determined to be uncollectible
from Vector and were written off, net of management fees due Vector, through the
reserve expense.
Due to Vector's inability to meet its financial commitments, the Focus 30 Fund
incurred operating expenses of $81,875 for the year ended October 31, 1999 for
salaries, rent and other administrative expenses, normally payable by Vector, to
continue the management of the Fund prior to the commencement of the Advisory
Agreement with the Adviser.
ADMINISTRATION, FUND ACCOUNTING AND TRANSFER AGENT FEES
Prior to July 12, 1999, State Street Bank and Trust Company ("State Street")
served as the administrator of the Trust, except for the Focus 30 Fund whose
administrator was Mutual Fund Service Company. Effective July 12, 1999, American
Data Services ("ADS"), an affiliate of the Adviser, serves as the administrator
of the Trust. The Administration agreement provides that ADS may retain
Sub-Administrators for the purpose of providing such services to one or more
Funds of the Trust. For providing administration services to the Trust, ADS or
the Sub-Administrator receives from each Fund a monthly fee at an annual rate of
0.10% of the first $100 million of the Fund's average daily net assets, and at
reduced rates thereafter, subject to certain minimum requirements.
ADS also acts as the fund accounting agent and transfer agent of the Focus 30
Fund and the Health & Biotechnology Fund. For providing fund accounting
services, the Funds pay ADS a fixed monthly fee for average net assets less than
$25 million plus out-of-pocket expenses. For providing transfer agent services,
the Funds pay ADS a minimum monthly or per account fee plus certain transaction
fees.
ADS has contractually agreed to waive certain of its service fees up to $44,000
for Fund assets less than $50 million for a period up to three years, and
voluntarily waive fees exceeding these amounts. Fees waived by ADS for the
period ended April 30, 2000 amounted to $42,659 and $208,365 for the Focus 30
Fund and Health & Biotechnology Fund, respecitively. For the period July 12,
1999 through October 31, 1999, the Focus 30 Fund incurred fees to ADS of
<PAGE>
ORBITEX GROUP OF FUNDS 48
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
approximately $29,000, of which ADS waived $11,000.
DISTRIBUTOR
The Trust has adopted Distribution Plans and Agreements pursuant to Rule 12b-l
under the 1940 Act. The Plans and Agreements provide for the payment of a
distribution fee to the distributor at an annualized rate of 0.40%, 0.75% and
0.75% of the average daily net assets attributable to the shares of Class A,
Class B and Class C, respectively. The Plans and Agreements for Class B and
Class C also provide for the payment of a shareholder service fee at an
annualized rate of 0.25% of the average daily net assets attributable to the
shares of Class B and Class C. Class D shares do not pay any 12b-1 distribution
or shareholder service fee.
TRUSTEES FEES
The Funds pay no compensation to their Trustees who are employees of the
Adviser. Trustees who are not Adviser employees receive a fee of $1,250 for each
regular and special meeting of the Board that the Trustee attends. The Trust
also reimburses each such Trustee for travel and other expenses incurred in
attending meetings of the Board.
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, 2000, were as follows:
<TABLE>
<CAPTION>
NET
GROSS GROSS UNREALIZED
IDENTIFIED UNREALIZED UNREALIZED APPRECIATION
COST APPRECIATION DEPRECIATION (DEPRECIATION)
------------ ------------ ------------ --------------
<S> <C> <C> <C> <C>
Growth Fund................... $ 40,605,562 $ 2,403,318 $ (9,438,812) $ (7,035,494)
Info-Tech & Communications
Fund........................ 339,453,310 89,731,011 (33,095,668) 56,635,343
Strategic Natural Resources
Fund........................ 5,540,106 560,951 (130,274) 430,677
Focus 30 Fund................. 11,949,083 4,668,960 (468,913) 4,200,047
Health & Biotechnology Fund... 228,646,984 6,000,340 (53,605,560) (47,605,220)
</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, 2000, were as follows:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Growth Fund............................. $ 67,364,999 $ 30,967,272
Info-Tech & Communications Fund......... 623,698,373 391,528,013
Strategic Natural Resources Fund........ 42,970,824 42,936,904
Focus 30 Fund*.......................... 4,977,949 7,747,799
Health & Biotechnology Fund**........... 296,512,933 79,638,429
</TABLE>
*For the six months ended April 30, 2000.
**For the period July 15, 1999 (commencement of operations) through April 30,
2000.
<PAGE>
ORBITEX GROUP OF FUNDS 49
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
For the year ended April 30, 2000, the following options were written:
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS PREMIUM
--------- -------
<S> <C> <C>
GROWTH FUND:
Balance as of April 30, 1999.......... -- $ --
Written............................... 8 414
Bought Back........................... 8 (414)
---- -----
Balance as of April 30, 2000.......... -- $ --
==== =====
</TABLE>
<TABLE>
<CAPTION>
NUMBER OF
CONTRACTS PREMIUM
--------- ---------
<S> <C> <C>
STRATEGIC NATURAL RESOURCES FUND:
Balance as of April 30, 1999.......... -- $ --
Written............................... 35 2,586
Closed and Expired.................... 35 (2,586)
---- -------
Balance as of April 30, 2000.......... -- $ --
==== =======
</TABLE>
6. SHAREHOLDERS' TRANSACTIONS
Following is a summary of shareholder transactions for each Fund:
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, 2000 APRIL 30, 1999
--------------------- ------------------
SHARES DOLLARS SHARES DOLLARS
-------- ----------- ------- ---------
<S> <C> <C> <C> <C>
GROWTH
CLASS A SHARES:
Shares sold................. 439,339 $19,748,021 50,700 $ 868,063
Shares issued in acquisition
of American Diversified
Global Value Fund
(Note 11)................. 251,174 5,338,412 -- --
Shares issued to
shareholders in
reinvestment.............. 10,363 287,294 2,764 47,377
Shares redeemed............. (133,781) (4,210,367) (26,965) (473,892)
-------- ----------- ------- ---------
Net increase.............. 567,095 $21,163,360 26,499 $ 441,548
======== =========== ======= =========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 2000 APRIL 30, 1999*
--------------------- ------------------
SHARES DOLLARS SHARES DOLLARS
-------- ----------- ------- ---------
<S> <C> <C> <C> <C>
CLASS B SHARES:
Shares sold................. 420,712 $18,613,958 3,387 $ 61,207
Shares issued to
shareholders in
reinvestment.............. 748 20,672 46 781
Shares redeemed............. (23,656) (906,041) (520) (9,816)
-------- ----------- ------- ---------
Net increase.............. 397,804 $17,728,589 2,913 $ 52,172
======== =========== ======= =========
</TABLE>
<PAGE>
ORBITEX GROUP OF FUNDS 50
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 2000**
------------------
SHARES DOLLARS
------ ----------
<S> <C> <C>
CLASS C SHARES:
Shares sold........................... 26,996 $1,156,885
Shares issued to shareholders in
reinvestment........................ -- --
Shares redeemed....................... (413) (11,219)
------ ----------
Net increase........................ 26,583 $1,145,666
====== ==========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, 2000 APRIL 30, 1999
----------------------- ----------------------
SHARES DOLLARS SHARES DOLLARS
--------- ------------ --------- -----------
<S> <C> <C> <C> <C>
INFO-TECH AND COMMUNICATIONS
CLASS A SHARES:
Shares sold................. 2,591,163 $131,741,450 1,256,122 $27,412,569
Shares issued to
shareholders in
reinvestment.............. 131,222 6,349,724 5,899 123,229
Shares redeemed............. (755,197) (38,166,403) (265,173) (5,107,233)
--------- ------------ --------- -----------
Net increase.............. 1,967,188 $ 99,924,771 996,848 $22,428,565
========= ============ ========= ===========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 2000 APRIL 30, 1999*
----------------------- ----------------------
SHARES DOLLARS SHARES DOLLARS
--------- ------------ --------- -----------
<S> <C> <C> <C> <C>
CLASS B SHARES:
Shares sold................. 2,725,886 $133,837,609 627,210 $15,591,987
Shares issued to
shareholders in
reinvestment.............. 127,675 6,124,484 1,194 24,861
Shares redeemed............. (294,308) (16,074,247) (8,164) (204,675)
--------- ------------ --------- -----------
Net increase.............. 2,559,253 $123,887,846 620,240 $15,412,173
========= ============ ========= ===========
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 2000**
--------------------
SHARES DOLLARS
------- -----------
<S> <C> <C>
CLASS C SHARES:
Shares sold........................... 455,536 $29,346,420
Shares issued to shareholders in
reinvestment........................ -- --
Shares redeemed....................... (34,736) (2,050,600)
------- -----------
Net increase........................ 420,800 $27,295,820
======= ===========
</TABLE>
<PAGE>
ORBITEX GROUP OF FUNDS 51
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
APRIL 30, 2000 APRIL 30, 1999
--------------------- ---------------------
SHARES DOLLARS SHARES DOLLARS
-------- ----------- -------- -----------
<S> <C> <C> <C> <C>
STRATEGIC NATURAL RESOURCES
CLASS A SHARES:
Shares sold................. 269,505 $ 4,240,566 131,711 $ 1,760,548
Shares issued to
shareholders in
reinvestment.............. -- -- 6,077 69,465
Shares redeemed............. (360,245) (5,660,095) (195,053) (2,799,209)
-------- ----------- -------- -----------
Net decrease.............. (90,740) $(1,419,529) (57,265) $ (969,196)
======== =========== ======== ===========
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED PERIOD ENDED
APRIL 30, 2000 APRIL 30, 1999*
------------------- ----------------
SHARES DOLLARS SHARES DOLLARS
------- ---------- ------ --------
<S> <C> <C> <C> <C>
CLASS B SHARES:
Shares sold................. 137,839 $2,204,511 28,871 $345,007
Shares issued to
shareholders in
reinvestment.............. -- -- 129 1,461
Shares redeemed............. (37,132) (590,586) (1,790) (20,201)
------- ---------- ------ --------
Net increase.............. 100,707 $1,613,925 27,210 $326,267
======= ========== ====== ========
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
SIX MONTHS ENDED OCTOBER 31,
APRIL 30, 2000 1999***
------------------- ---------------
SHARES DOLLARS SHARES DOLLARS
------- ---------- ------ -------
<S> <C> <C> <C> <C>
FOCUS 30
CLASS A SHARES:
Shares sold................. 70,818 $1,433,748 2,818 $63,428
Shares issued to
shareholders in
reinvestment.............. 1,800 36,322 -- --
Shares redeemed............. (16,648) (317,958) (82) (1,802)
------- ---------- ----- -------
Net increase.............. 55,970 $1,152,112 2,736 $61,626
======= ========== ===== =======
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
SIX MONTHS ENDED OCTOBER 31,
APRIL 30, 2000 1999***
------------------- ---------------
SHARES DOLLARS SHARES DOLLARS
------- ---------- ------ -------
<S> <C> <C> <C> <C>
CLASS B SHARES:
Shares sold................. 63,832 $1,275,138 450 $10,023
Shares issued to
shareholders in
reinvestment.............. 316 6,378 -- --
Shares redeemed............. (16,797) (330,822) -- --
------- ---------- ----- -------
Net increase.............. 47,351 $ 950,694 450 $10,023
======= ========== ===== =======
</TABLE>
<PAGE>
ORBITEX GROUP OF FUNDS 52
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 2000 OCTOBER 31, 1999
--------------------- ------------------------
SHARES DOLLARS SHARES DOLLARS
-------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
CLASS D SHARES:
Shares sold................. 23,672 $ 480,654 551,613 $ 11,302,402
Shares issued to
shareholders in
reinvestment.............. 117,112 2,366,841 89,132 1,682,128
Shares redeemed............. (246,765) (4,946,247) (1,354,990) (28,138,772)
-------- ----------- ---------- ------------
Net decrease.............. (105,981) $(2,098,752) (714,245) $(15,154,242)
======== =========== ========== ============
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED
OCTOBER 31, 1998
------------------------
SHARES DOLLARS
---------- ------------
<S> <C> <C>
CLASS D SHARES:
Shares sold........................... 4,211,829 $ 79,003,347
Shares issued to shareholders in
reinvestment........................ 99,745 1,766,644
Shares redeemed....................... (3,986,563) (74,749,547)
---------- ------------
Net increase........................ 325,011 $ 6,020,444
========== ============
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 2000****
-----------------------
SHARES DOLLARS
--------- ------------
<S> <C> <C>
HEALTH & BIOTECHNOLOGY
CLASS A SHARES:
Shares sold........................... 4,559,919 $ 99,288,073
Shares issued to shareholders in
reinvestment........................ -- --
Shares redeemed....................... (726,453) (14,117,731)
--------- ------------
Net increase........................ 3,833,466 $ 85,170,342
========= ============
</TABLE>
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 2000****
-----------------------
SHARES DOLLARS
--------- ------------
<S> <C> <C>
CLASS B SHARES:
Shares sold........................... 4,788,993 $103,248,275
Shares issued to shareholders in
reinvestment........................ -- --
Shares redeemed....................... (453,680) (9,660,664)
--------- ------------
Net increase........................ 4,335,313 $ 93,587,611
========= ============
</TABLE>
<PAGE>
ORBITEX GROUP OF FUNDS 53
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
<TABLE>
<CAPTION>
PERIOD ENDED
APRIL 30, 2000**
----------------------
SHARES DOLLARS
--------- -----------
<S> <C> <C>
CLASS C SHARES:
Shares sold........................... 2,624,684 $63,358,809
Shares issued to shareholders in
reinvestment........................ -- --
Shares redeemed....................... (402,704) (8,879,181)
--------- -----------
Net increase........................ 2,221,980 $54,479,628
========= ===========
</TABLE>
*The commencement of investment operations was September 16, 1998 for Growth
Fund Class B Shares and Info-Tech & Communications Fund Class B Shares, and
September 21, 1998 for Strategic Natural Resources Fund Class B Shares.
**The commencement of investment operations was March 14, 2000 for Growth Fund
Class C Shares, January 14, 2000 for Info-Tech & Communications Class C Shares,
and January 18, 2000 for Health & Biotechnology Fund Class C Shares.
***The commencement of operations was July 12, 1999 for Focus 30 Fund Class A
and B Shares.
****The commencement of investment operations was July 15, 1999 for Health &
Biotechnology Fund Class A and B Shares.
7. BENEFICIAL INTEREST
At April 30, 2000, one shareholder in the Strategic Natural Resources Fund owned
11% of the Fund's net assets.
There were no affiliated shareholders as of April 30, 2000.
8. CAPITAL LOSS CARRYFORWARD
At April 30, 2000, the Growth Fund had available for federal income tax purposes
unused capital losses of $377,179, of which $130,051 expires in 2002 and
$247,128 expires in 2006, and the Health & Biotechnology Fund had unused capital
losses of $91,688, expiring in 2008.
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, 2000, the following Funds have elected to defer
losses occurring between November 1, 1999 and April 30, 2000 under these rules,
as follows:
<TABLE>
<CAPTION>
CAPITAL CURRENCY
LOSSES LOSSES
NAME OF FUND DEFERRED DEFERRED
------------ ---------- --------
<S> <C> <C>
Growth Fund............................. $ 679,068 --
Strategic Natural Resources Fund........ -- $38
Health & Biotechnology Fund............. $5,076,832 --
</TABLE>
Such deferred losses will be treated as arising on the first day of the fiscal
year ending April 30, 2001.
9. COMMITMENTS AND CONTINGENCIES - LEGAL PROCEEDINGS
On February 8, 1999 and on June 2, 1999, suits were filed in the Thirteenth
Judicial Circuit Court, Hillsborough County, Florida, against Steven H. Adler, a
former director and officer of ASM, Vector, the ASM
<PAGE>
ORBITEX GROUP OF FUNDS 54
--------------------------------------------------------------------------------
Notes to Financial Statements (continued)
April 30, 2000
------------------------------------------
------------------------------------------
Index 30 Fund, and, in the case of the latter suit, Mutual Funds Service Co.,
the former administrator, fund accountant, and transfer agent, alleging that Mr.
Adler wrongfully diverted monies intended for or previously invested in the ASM
Index 30 Fund. On February 9, 2000, the second suit was amended to allege claims
against the former directors of ASM for failure to supervise. The relief sought
is the recovery of the investment amounts of approximately $2.7 million and
interest thereon, additional general, consequential, incidental, and treble
damages under RICO, legal costs and disbursements, and declaratory and
injunctive relief to preclude the Fund dissipation of its assets. The Focus 30
Fund succeeded to the obligations of ASM with respect to these suits, including
obligations of ASM to indemnify its officers and directors for which no officers
and directors' insurance policy was in effect. At the present time, the
liability of the Focus 30 Fund, if any, is not readily determinable.
10. REORGANIZATION
As of the close of business on July 9, 1999, the Focus 30 Fund, a newly created
portfolio, acquired all the net assets of ASM pursuant to a plan of
reorganization approved by the shareholders of ASM on July 2, 1999. The
acquisition was accomplished by a tax-free exchange, the details of which are
outlined in the following schedule:
<TABLE>
<CAPTION>
AT CLOSE OF BUSINESS JULY 9, 1999
----------------------------------------------------
ASM FOCUS 30--CLASS D SHARES MERGED ASSETS
----------- ------------------------ -------------
<S> <C> <C> <C>
Net Assets......................... $19,898,870 -- $19,898,870
Shares Outstanding................. 874,960 -- 874,960
Net Asset Value Per Share.......... $ 22.74 -- $ 22.74
</TABLE>
The financial statements of the Focus 30 Fund reflect the historical financial
results of ASM prior to the reorganization. In 2000, the fiscal year end of the
Focus 30 Fund was changed for financial reporting and tax purposes from
October 31 to April 30 to coincide with the other Funds in the Trust.
11. FUND ACQUISITION
As of the close of business on September 17, 1999, the Growth Fund acquired all
the net assets of the American Diversified Global Value Fund ("ADGVF") pursuant
to a plan of reorganization approved by the shareholders of ADGVF on
September 10, 1999. The acquisition was completed by a tax-free exchange, the
details of which are outlined in the following schedule:
<TABLE>
<CAPTION>
AT CLOSE OF BUSINESS SEPTEMBER 17, 1999
------------------------------------------------------
ADGVF GROWTH FUND--CLASS A SHARES MERGED ASSETS
---------- --------------------------- -------------
<S> <C> <C> <C>
Net Assets......................... $5,338,412 $1,210,513 $6,548,925
Unrealized Appreciation............ $ 96,531 -- --
Shares Outstanding................. 362,910 56,973 308,147
Net Asset Value Per Share.......... $ 14.71 $ 21.25 $ 21.25
</TABLE>
<PAGE>
ORBITEX GROUP OF FUNDS 55
--------------------------------------------------------------------------------
Report of Independent Accountants
April 30, 2000
------------------------------------------
------------------------------------------
To the Trustees and Shareholders of the 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 Orbitex Growth Fund, Orbitex
Info-Tech & Communications Fund, Orbitex Strategic Natural Resources Fund
(currently known as Orbitex Energy & Basic Materials Fund), Orbitex Focus 30
Fund and Orbitex Health & Biotechnology Fund (the "Funds") at April 30, 2000,
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 accounting principles generally accepted in the United States. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' 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 auditing standards generally accepted in the United States, 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, 2000 by correspondence with the custodian and
brokers, provide a reasonable basis for the opinion expressed above.
As disclosed in Note 9 to the financial statements, on February 8, 1999 and
June 2, 1999, suits were filed alleging that a former officer and director of
the ASM Index 30 Fund, Inc. ("ASM") wrongfully diverted monies intended for or
previously invested in ASM. On February 9, 2000, one of the suits was amended to
allege claims against the former directors of ASM for failure to supervise. The
relief sought is recovery of the investment amounts of approximately $2.7
million and interest thereon, additional general, consequential, incidental and
treble damages under RICO, legal costs and disbursements, and declaratory and
injunctive relief to preclude ASM dissipation of its assets. At the present
time, the liability of the Focus 30 Fund which succeeded to the obligations of
ASM with respect to these suits, if any, is not readily determinable nor is it
readily determinable whether other individuals may file additional suits or make
additional claims alleging similar improprieties. Accordingly, no provision for
any liability that may result upon adjudication has been recorded in the
accompanying financial statements.
PricewaterhouseCoopers LLP
Boston, Massachusetts
June 19, 2000
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
[LOGO]
Distributed by Funds Distributor, Inc.
ANNUAL REPORT APRIL 30, 2000
----------------------------------
[GRAPHIC]
ORBITEX-Registered Trademark-
GROUP OF FUNDS
ORBITEX GROWTH FUND
ORBITEX INFO-TECH &
COMMUNICATIONS FUND
ORBITEX STRATEGIC
NATURAL RESOURCES FUND
ORBITEX FOCUS 30 FUND
ORBITEX HEALTH &
BIOTECHNOLOGY FUND
ORB-AR-OGF-0400
