[LOGO]
September 24, 1999 Rule 497(b)
File No. 333-47467
THE NEVIS FUND, INC.
The Nevis Fund, Inc. is a no-load mutual fund seeking long-term capital
appreciation.
This prospectus gives you important information about the Fund that you
should know before investing. Please read this prospectus and keep it for future
reference.
The Securities and Exchange Commission has not approved or disapproved the
Fund's shares or determined whether this prospectus is accurate or complete.
It is a crime for anyone to tell you otherwise.
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Nevis Capital Management, Inc.
Investment Adviser
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AN OVERVIEW OF THE FUND
This section describes the Fund's investment goals and strategies and the
principal risks of investing in the Fund.
INVESTMENT GOALS AND STRATEGIES OF THE FUND
The Fund's goal is long-term capital appreciation. The Fund generally
follows a growth strategy in selecting securities but may select stocks based
upon value-oriented criteria.
The Fund's investment strategy is founded on the belief that over time the
performance of a company's stock will track the growth of its earnings. The
Fund's investment adviser will select investments for the Fund characterized by
businesses that generate high returns on invested capital and have strong,
positive cash flows. When analyzing a company's earnings growth, the investment
adviser attempts to determine its sustainable rate of growth of operating
earnings. The investment adviser is not interested in companies that report
unsustainable earnings growth attributable to investment income, extraordinary
gains or accounting legerdemain. The Fund generally invests in companies with
market capitalizations of more than $100 million, but may invest in companies of
any size.
The Fund's investment strategy also requires the investment adviser to be
sensitive to valuation when selecting stocks for the Fund's portfolio.
Typically, the stocks purchased by the Fund will have a price earnings (P/E)
multiple no greater than 75% of the company's long-term sustainable growth rate.
The Fund's investment adviser pays careful attention to a company's capital
structure, preferring companies with conservatively capitalized balance sheets
that are self-financing.
The Fund's investment adviser will generally sell a security when the
investment criteria no longer applies. The Fund takes a long-term approach to
investing, and as a result, the Fund expects it will generally experience
relatively low portfolio turnover.
PRINCIPAL RISKS OF INVESTING IN THE FUND
You may lose money on your investment in the Fund, just as you could with
other investments. As with all mutual funds, Fund shares are not bank deposits
and are not insured or guaranteed by the FDIC or any government agency.
The value of your investment in the Fund is based on the market prices of
the securities the Fund holds. Since it purchases equity securities, the Fund is
subject to the risk that stock prices will fall over short or extended periods
of time. These price movements, sometimes called volatility, may be greater or
lesser depending on the types of securities the Fund owns and the markets in
which they trade. Historically, the equity markets have moved in cycles, and the
value of the Fund's equity securities may fluctuate significantly from day to
day. Individual companies may report poor results or be negatively affected by
industry and/or economic trends and developments. The prices of securities
issued by such companies may suffer a decline in response. These factors
contribute to price volatility, which is the principal risk of investing in the
Fund.
The smaller capitalization companies the Fund invests in may be more
vulnerable to adverse business or economic events than larger, more established
companies. These companies typically have relatively lower revenues, limited
product lines and lack of management depth, and may have a smaller share of the
market for their products or services, than larger capitalization companies.
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The Fund may select a security based upon value-oriented criteria. The
principal risk of value investing is that the security may remain undervalued.
The Fund is non-diversified, which means that it may invest in the
securities of relatively few companies. As a result, the Fund may be more
susceptible to a single adverse economic or regulatory occurrence affecting one
or more of these companies and may experience increased volatility due to its
investments in those securities.
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FEES AND EXPENSES
OF THE FUND
This table describes the fees and expenses that you may pay if you buy and
hold shares. You would pay these fees directly from your investment in the Fund:
Shareholder Fees (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases
(as a % of offering price)............................................ None
Maximum DeferredSales Charge (Load)
(as a % of net asset value)........................................... None
Maximum Sales Charge (Load) Imposed on Reinvested Dividends
and other Distributions (as a % of offering price).................... None
Redemption Fee (as a % of amount redeemed).............................. 1.00%*
Annual Fund Operating Expenses (expenses that
are deducted from fund assets)
Management Fees......................................................... 1.50%
Distribution and Service
(12b-1) Fees.......................................................... .00%
Other Expenses.......................................................... .00%**
Total Annual Fund Operating
Expenses.............................................................. 1.50%**
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*Shares redeemed within 90 days of their purchase are subject to a 1%
redemption fee which may be waived by the Fund. See "Purchasing and
Selling Fund Shares - Selling Shares."
**The Fund's investment adviser has contractually agreed to pay all
ordinary expenses of the Fund's operations. For more information about
fees and expenses, see "Fund Management - Investment Adviser."
Example
This example is intended to help you compare the cost of investing in the
Fund with the cost of investing in other mutual funds. The example assumes that
you invest $10,000 in the Fund for the time periods indicated and that you sell
your shares at the end of the period.
The example also assumes that each year your investment has a 5% return and
Fund expenses remain the same. Although your actual costs and returns might be
different, your approximate costs of investing $10,000 in the Fund would be:
1 Year 3 Years 5 Years 10 Years
$153 $474 $818 $1,791
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THE FUND'S INVESTMENTS AND STRATEGIES
The Fund's primary investments and strategies are described above under "An
Overview of the Fund." The Fund will normally invest at least 65% of its assets
in the types of securities described in this prospectus. However, the Fund also
may invest in other securities, use other strategies and engage in other
investment practices. These investments and strategies, as well as those
described in this prospectus, are described in detail in our Statement of
Additional Information. Of course there is no guarantee that the Fund will
achieve its investment goal.
EQUITY SECURITIES
Equity securities are the fundamental unit of ownership in a company. They
represent a share of the company's earnings and assets, after it pays its
liabilities. Equity securities offer greater potential for appreciation than
other types of securities because their value increases directly with the value
of the company's business. Equity securities include publicly and privately
issued common and preferred stocks, warrants, rights to subscribe to common
stock and convertible securities, as well as instruments that attempt to track
the price movement of equity indices.
Common stocks are the most prevalent type of equity security. Common
stockholders receive the residual value of the company's earnings and assets
after the company pays its creditors and any preferred stockholders. As a
result, changes in an issuer's earnings directly influence the value of its
common stock.
Holders of preferred stocks have the right to receive specified dividends
before the company makes payments on its common stock. Some preferred stocks
also participate in dividends and other distributions paid on common stock.
Preferred stocks may permit the company to redeem the stock.
Warrants give the Fund the option to buy a company's equity securities at a
specified price (the exercise price) at a specified future date (the expiration
date). The Fund may buy the designated securities by paying the exercise price
before the expiration date. Warrants may become worthless if the price of the
stock does not rise above the exercise price by the expiration date. This
increases the market risks of warrants as compared to the underlying security.
Rights are the same as warrants, except companies typically issue rights to
existing shareholders.
TEMPORARY INVESTMENTS
The investments and strategies described in this prospectus are those that
we use under normal conditions. During unusual economic or market conditions, or
for temporary defensive or liquidity purposes, the Fund may invest up to 100% of
its assets in cash and short-term securities that may not ordinarily be
consistent with the Fund's goals. The Fund may not achieve its investment goal
when so invested. The Fund will make such investments if the investment adviser
believes that the risk of loss outweighs the opportunity for gains.
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MORE ABOUT RISK
There are risks associated with investing in the types of securities in
which the Fund invests. As a result, the Fund is a suitable investment only for
those investors who have long-term investment goals. Prospective investors who
are uncomfortable with an investment that will fluctuate in value should not
invest in the Fund.
MARKET RISK
Investments in equity securities are subject to market risks that may cause
their prices to fluctuate over time. The value of securities convertible into
equity securities, such as warrants or convertible debt, also is affected by
prevailing interest rates, the credit quality of the issuer and any call
provision. From time to time "value" investing falls out of favor with
investors. When it does, there is the risk that the market will not recognize a
company's improving fundamentals as quickly as it normally would. During these
periods, the Fund's relative performance may suffer.
Fluctuations in the value of equity securities in which the Fund invests
will cause the Fund's net asset value to fluctuate. An investment in a portfolio
of equity securities may be more suitable for long-term investors who can bear
the risk of these share price fluctuations.
SMALLER CAPITALIZATION COMPANY RISK
The Fund may invest in smaller capitalization companies. These companies
may be more vulnerable to adverse business or economic events than larger, more
established companies. Smaller capitalization companies typically have
relatively lower revenues, limited product lines and lack of management depth,
and may have a smaller share of the market for their products or services, than
larger capitalization companies. Therefore, small-cap stocks may be more
volatile than those of larger companies. The stocks of smaller capitalization
companies tend to have less trading volume than the stocks of larger companies.
Less trading volume may make it more difficult for the Fund to sell a small-cap
stock at its quoted market price. Finally, there are periods when investing in
small-cap stocks falls out of favor with investors and these stocks
underperform.
NON-DIVERSIFICATION RISK
The Fund is a non-diversified investment company. As such it likely will
invest in the securities of relatively fewer companies than diversified funds
and its performance may be more volatile. If the securities in which the Fund
invests perform poorly, the Fund could incur greater losses than it would have
incurred had it invested in a greater number of companies.
YEAR 2000 RISK
The Fund depends upon the smooth functioning of computer systems in almost
every aspect of its business. Like other mutual funds, businesses and
individuals around the world, the Fund could be adversely affected if the
computer systems used by its service providers do not properly process dates on
and after January 1, 2000, and do not distinguish between the year 2000 and the
year 1900. The Fund has asked its mission critical service providers whether
they expect to have their computer systems adjusted for the year 2000
transition, and has sought and received assurances from such service providers
that they are devoting significant resources to prevent material adverse
consequences to the Fund. While such assurances have been received, the Fund and
its shareholders may experience losses if these assurances prove to be incorrect
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or as a result of year 2000 computer difficulties experienced by issuers of
securities or third parties, such as custodians, banks, broker-dealers or others
with which the Fund does business.
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PURCHASING AND SELLING FUND SHARES
HOW TO CONTACT THE FUND
Write to us at:
The Nevis Fund, Inc.
P.O. Box 446
Portland, ME 04112
Telephone us toll-free at:
(877) 44-NEVIS
Wire investments (or ACH payments) to us at:
First Union National Bank
ABA #031201467
For Credit to:
Account # 2014215593095
The Nevis Fund, Inc.
(Your name)
(Your account number)
(Your Social Security number or tax
identification number)
GENERAL INFORMATION
You pay no sales charge to purchase or sell (redeem) shares of the Fund.
The Fund purchases and sells shares at the net asset value per share or NAV next
calculated after the Fund's transfer agent receives your transaction request in
proper form. For instance, if the transfer agent receives your transaction
request in proper form prior to 4:00 p.m., your transaction will be priced at
that day's NAV. If the transfer agent receives your request after 4:00 p.m.,
your transaction will be priced at the next day's NAV. Purchases and redemptions
of Fund shares may be made on any day on which both the Federal Reserve Banks
and the New York Stock Exchange are open. The Fund will not accept orders that
request a particular day or price for the transaction or any other special
conditions.
Shares redeemed within 90 days of their purchase are subject to a
redemption fee equal to 1% of the NAV next calculated after receipt of the
redemption request in proper form. The Fund may waive the redemption fee if it
is in the best interests of the Fund and its shareholders to do so.
The Fund does not issue share certificates.
You will receive quarterly statements and a confirmation of each
transaction. You should verify the accuracy of all transactions in your account
as soon as you receive your confirmation.
The Fund reserves the right to impose minimum investment amounts and may
temporarily suspend (during unusual market conditions) or discontinue any
service or privilege.
When and How NAV is Determined. The Fund calculates its NAV as of the close
of the New York Stock Exchange (normally 4:00 p.m., Eastern time) on each
weekday except days when either the New York Stock Exchange or the Federal
Reserve Banks is closed. The time at which NAV is calculated may be changed in
case of an emergency. The Fund's NAV is determined by taking the market value of
all securities owned by the Fund (plus all other assets such as cash),
subtracting all liabilities and then dividing the result (net assets) by the
number of shares outstanding. The Fund values securities for which market
quotations are readily available at current market value. If market quotations
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are not readily available, the Fund values securities at fair value using
methods approved by the Fund's board of directors.
Transactions Through Third Parties. You may purchase and redeem shares of
the Fund through a broker or an agent, including banks, retirement plans and
financial advisers. You may be charged a fee if you make a purchase or
redemption of shares of the Fund through a broker or an agent. Such fees may
vary among brokers and agents but in all cases will be retained by the broker or
agent and not remitted to the Fund or the Fund's investment adviser. The Fund
may authorize one or more brokers, financial institutions or other service
providers (Processing Intermediaries), who may designate other Processing
Intermediaries, to accept purchase and redemption orders on behalf of the Fund.
In such event, the Fund will be deemed to have received a purchase or redemption
order when accepted by the Processing Intermediary and the order will be priced
at the Fund's NAV next calculated after the order is accepted by the Processing
Intermediary. Consult a representative of your financial institution or
retirement plan for further information.
Retirement Accounts. The Fund offers IRA accounts, including traditional
and Roth IRAs. Fund shares may also be an appropriate investment for other
retirement plans. Before investing in any IRA or other retirement plan, you
should consult your tax adviser. Whenever making an investment in an IRA, be
sure to indicate the year in which the contribution is made.
PURCHASING SHARES
All investments must be in U.S. dollars and checks must be drawn on U.S.
banks.
Checks. For individual or UGMA/UTMA accounts, the check must be made
payable to "The Nevis Fund, Inc." or to one or more owners of the account and
endorsed to "The Nevis Fund, Inc." For all other accounts, the check must be
made payable on its face to "The Nevis Fund, Inc." No other method of check
payment is acceptable (for instance, you may not pay by travelers check).
Purchases by Automated Clearing House (ACH). This service allows the
purchase of additional shares through an electronic transfer of money from a
checking or savings account. When an additional purchase is made by telephone,
the Fund's transfer agent will automatically debit the pre-designated bank
account for the desired amount. Shareholders may call (877) 44-NEVIS to request
an ACH transaction.
Wires. Instruct your financial institution to wire payment to us. Your
financial institution may charge you a fee for this service.
Minimum Investments. The Fund accepts payments in the following minimum
amounts:
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Minimum Minimum
Initial Additional
Investment Investment
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Standard Accounts $10,000 $500
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Traditional and Roth
IRA Accounts $2,000 None
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Automatic Investment
Plans $10,000 $50
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Automatic Redemption
Plans $25,000 $50
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Management of the Fund may choose to waive the investment minimum.
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ACCOUNT REQUIREMENTS
<TABLE>
<CAPTION>
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Type of Account Requirements
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<S> <C>
Individual, Sole Proprietorship and Joint o Individual accounts are owned by one person,
Accounts as are sole proprietorship accounts
o Joint accounts can have two or more owners
(tenants)
o Instructions must be signed by all persons
required to sign (you choose who must sign)
exactly as each name appears on the account
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Gifts or Transfers to a Minor (UGMA, UTMA) o Depending on state laws, you can set up a
These custodial accounts provide a way to give custodial account under the Uniform Gift to
money to a child and obtain tax benefits. You can Minors Act or the Uniform Transfers to
give up to $10,000 a year per child without paying Minors Act
Federal gift tax. o The trustee must sign instructions in a manner
indicating trustee capacity
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Business Entities o For entities with officers, provide an original or
certified copy of a resolution that identifies the
authorized signers for the account
o For entities with partners or similar parties,
provide a certified partnership agreement or
organizational document, or certified pages
from the partnership agreement or organiza-
tional document, that identify the partners or
similar parties
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Trusts o The trust must be established before an
account can be opened
o Provide a certification for trust, or the pages
from the trust document that identify the
trustees
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INVESTMENT PROCEDURES
<TABLE>
<CAPTION>
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To Open an Account To Add to Your Account
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<S> <C>
By Check By Check
o Call or write us for an account application o Fill out an investment slip from a confirmation
o Complete the application statement or write a letter to us
o Mail us your application and a check o Write your account number on your check
o Mail us the slip (or your letter) and a check
By Wire By Wire
o Call or write us for an account application o Call to notify us of your incoming wire
o Complete the application o Instruct your bank to wire your money to us
o Call us and you will be assigned an account
number
o Mail us your application
o Instruct your bank to wire your money to us
By ACH Payment By Automatic Investment
o Call or write us for an account application o Complete the Automatic Investment Plan (AIP)
o Complete the application section on your account application
o Call us and you will be assigned an account o Complete the application
number o Attach a voided check to your application
o Mail us your application o Mail us the application and the voided check
o Make an ACH payment
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</TABLE>
Automatic Investments. You may invest a specified amount of money in the
Fund once or twice a month on specified dates. These payments are taken from
your bank account by ACH payment. Automatic investments must be for at least
$50.
Limitations on Purchases. The Fund reserves the right to refuse any
purchase request, particularly requests that could adversely affect the Fund or
its operations. This includes those from any individual or group who, in the
Fund's view, are likely to engage in excessive trading (usually defined as more
than four transactions out of the Fund within a calendar year).
Canceled or Failed Payments. The Fund accepts checks and ACH transfers at
full value subject to collection. If your payment for shares is not received or
you pay with a check or ACH transfer that does not clear, your purchase will be
canceled. You will be responsible for any losses or expenses incurred by the
Fund or its transfer agent, and the Fund may redeem shares you own in the
account as reimbursement. The Fund and its agents have the right to reject or
cancel any purchase or redemption due to nonpayment.
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SELLING SHARES
The Fund processes redemption orders promptly and you will generally
receive redemption proceeds within a week. Delays may occur in cases of very
large redemptions, excessive trading or during unusual market conditions. If the
Fund has not yet collected payment for the shares you are selling, however, it
may delay sending redemption proceeds for up to 15 calendar days.
<TABLE>
<CAPTION>
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To Sell Shares from Your Account
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<S> <C>
By Mail By Telephone
o Prepare a written request including: o Call us with your request (unless you declined
o Your name(s) and signature(s) telephone redemption privileges on your
o Your account number account application)
o The Fund name
o The dollar amount or number of shares you o Provide the following information:
want to sell o Your account number
o How and where to send your proceeds o Exact name(s) in which account is registered
o Obtain a signature guarantee (if required) o Additional form of identification
o Obtain other documentation (if required) o Your proceeds will be:
o Mail us your request and documentation o Mailed to you or
o Wired to you (unless you have declined
By Wire telephone redemption privileges
o Wire requests are only available if: -- See "By Wire")
o You did not decline wire redemption privileges
on your account application Automatically
and o Complete the Automatic Redemption Plan
o Your request is for $5,000 or more (ARP) section on your account application
o Call us with your request (unless you have o Attach a voided check to your form
declined telephone redemption privileges o Mail us your form and the voided check
-- See "By Telephone") or
o Mail us your request (See "By Mail")
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Telephone Redemption Privileges. You may redeem your shares by telephone
unless you declined redemption privileges on your account application or a
separate form. You may be responsible for any fraudulent telephone order as long
as the Fund's transfer agent takes reasonable measures to verify the order.
Wire Redemption Privileges. You may redeem shares by wire unless you
declined wire redemption privileges on your account application or a separate
form. The minimum amount you may request by wire is $5,000. If you wish to make
your wire request by telephone, you must also elect telephone redemption
privileges.
Automatic Redemption. If you own shares of the Fund with an aggregated
value of at least $25,000, you may request a specified amount of money from your
account once a month or quarter or semi-annual or annual period on a specified
date. These payments are sent from your account to a designated bank account by
ACH payment. Automatic requests must be for at least $50.
Signature Guarantee Requirements. To protect you and the Fund against
fraud, signatures on certain requests must have a "signature guarantee." For
requests made in writing, a signature guarantee is required for any of the
following:
o Redeeming shares worth over $50,000
o Redeeming shares from your account if you have changed the address or
account registration within the last 30 days
o Sending proceeds to any person, address, brokerage firm or bank account
not on record
o Sending proceeds to an account with a different registration (name or
ownership) from yours
o Changing wire or ACH instructions on an account
o Changing the distribution, telephone requests or exchange option or any
other election in connection with your account
A signature guarantee verifies the authenticity of your signature. You can
obtain one from most banking institutions or securities brokers, but not from a
notary public.
Small Accounts. If the value of your account falls below $10,000 (with the
exception of an IRA account), the Fund may ask you to increase your balance. If
the account value is still below $10,000 after 60 days, the Fund may close your
account and send you the proceeds. The Fund will not close your account if it
falls below these amounts solely as a result of a reduction in your account's
market value.
Redemption In Kind. The Fund reserves the right to make redemptions "in
kind" -- payment of redemption proceeds in portfolio securities rather than cash
- -- if the amount requested is large enough to affect the Fund's operations (for
example, if it represents more than 1% of the Fund's assets).
Lost Accounts. The Fund's transfer agent will consider your account "lost"
if correspondence to your address of record is returned as undeliverable, unless
the transfer agent determines your new address. When an account is "lost," all
distributions on the account will be reinvested in additional shares of the
Fund. In addition, the amount of any outstanding (unpaid for six months or more)
checks for distributions that have been returned to the Fund's transfer agent
will be reinvested and the checks will be canceled.
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DIVIDENDS, DISTRIBUTIONS
AND TAXES
DIVIDENDS AND DISTRIBUTIONS
The Fund distributes substantially all of its investment income and capital
gains annually.
Your dividends and capital gains distributions will be automatically
reinvested in additional Fund shares, unless you elect to receive payment in
cash. To elect cash payment, you must notify the Fund in writing prior to the
date of distribution. Your election will be effective for dividends and
distributions paid after the Fund receives your written notice. To cancel your
election, simply send the Fund written notice.
TAXES
Please consult your tax adviser regarding your specific questions about
Federal, state and local income taxes. Below we have summarized some important
tax issues that affect the Fund and its shareholders. This summary is based on
current tax laws, which may change.
The Fund will distribute substantially all of its income and capital gains,
if any. The dividends and distributions you receive may be subject to Federal,
state and local taxation, depending upon your tax situation. Distributions you
receive from the Fund may be taxable whether or not you reinvest them in
additional Fund shares. Income distributions are generally taxable at ordinary
income tax rates. Capital gains distributions are generally taxable at the rates
applicable to long-term capital gains. Each sale of shares is a taxable event.
More information about taxes is in the Statement of Additional Information.
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FUND MANAGEMENT
BOARD OF DIRECTORS
The business and affairs of the Fund are managed under the supervision of
its board of directors. The board approves all significant agreements between
the Fund and its service providers, including agreements with the Fund's
investment adviser, distributor, administrator, transfer agent and custodian. A
majority of the Fund's directors are not affiliated with the investment adviser
or the distributor of the Fund.
INVESTMENT ADVISER
Nevis Capital Management, Inc. (the Adviser) is the Fund's investment
adviser. As investment adviser to the Fund, the Adviser manages the Fund's
investment portfolio. It makes decisions as to which securities to buy and which
securities to sell.
During the last fiscal year, the Fund paid the Adviser an annual investment
advisory fee equal to 1.50% of the Fund's average daily net assets. The Adviser
has contractually agreed to pay all ordinary expenses incurred in the conduct of
the Fund's operations. The Fund will bear any extraordinary expenses incurred in
the course of its business.
The Adviser was founded in 1991 by David R. Wilmerding, III and Jon C.
Baker to provide a vehicle for investing in superior growth companies in a
focused manner. The Adviser provides investment advisory services to
institutional investors, as well as high net worth individual investors. The
Adviser acts as investment adviser to private accounts and investment company
portfolios with aggregate assets of approximately $720 million as of August 31,
1999.
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Messrs. Wilmerding and Baker, as portfolio managers, are primarily
responsible for the day-to-day management of the Fund's portfolio. Mr.
Wilmerding is President of the Adviser. He has more than 15 years of investment
experience and has been a portfolio manager with the Adviser since July 1991.
Mr. Baker is Senior Vice President of the Adviser. He has more than 12 years of
investment experience and has been a portfolio manager with the Adviser since
September 1991.
PRIOR PERFORMANCE OF INVESTMENT ADVISER
The chart below shows the performance of all accounts managed by the
Adviser using substantially the same goals, policies and strategies as the Fund.
This information does not represent the performance of the Fund and you should
not consider it as an indication of how the Fund will perform in the future. The
Fund's performance for the period June 29, 1998 (commencement of operations)
through May 31, 1999 is contained in the Fund's 1999 annual report.
Year Ended Nevis Russell
December 31 Composite(1) S&P 500(2) 2000(3)
1991* 10.2% 8.4% 5.4%
1992 13.0% 7.6% 16.4%
1993 32.3% 10.1% 17.0%
1994 15.8% 1.3% -3.2%
1995 57.4% 37.5% 26.2%
1996 35.0% 23.0% 14.7%
1997 10.1% 33.4% 20.5%
1998 12.2% 28.5% -3.5%
Cumulative
Returns
(since 9/30/91) 400.8% 277.1% 133.9%
Compound
Annual Returns
(since 9/30/91) 24.9% 20.1% 12.4%
Average Annual
Total Returns
1 Year 12.2% 28.5% -3.5%
5 Years 24.9% 24.0% 10.3%
Since Inception 24.9% 20.1% 12.4%
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*For the period October 1, 1991 through December 31, 1991. The Adviser began
managing accounts included in the Nevis Composite on October 1, 1991.
(1)The Nevis Composite was developed from the aggregate performance of all
accounts that are managed by the Adviser with full discretionary authority
and substantially the same investment goals, policies and strategies as the
Fund. Investment advisory fees and other expenses have been deducted. These
fees and expenses generally are lower than those incurred by the Fund, and
the returns would have been lower if the accounts had been subject to the
higher fees and expenses. In addition, if the accounts were regulated
investment companies under the Federal securities and tax laws, the
performance of the accounts might have been adversely affected by the tax
restrictions and investment limitations to which the Fund is subject. The net
investment performance represents total return, assuming reinvestment of all
dividends and proceeds from capital transactions.
(2)The S&P 500 Index is composed of 500 selected common stocks, most of which
are listed on the New York Stock Exchange. The S&P 500 Index assigns relative
weightings to the common stocks included, and the value fluctuates with
changes in the market values of those common stocks.
(3)The Russell 2000 Index is composed of the 2,000 smallest companies in the
Russell 3000 Index, representing 7% of the Russell 3000 total market
capitalization. The Russell 3000 Index is composed of 3,000 large U.S.
companies ranked by market capitalization, representing approximately 98% of
the U.S. equity market.
DISTRIBUTION OF FUND SHARES
Shares of the Fund are distributed through SEI Investments Distribution Co.
The Fund's distributor markets shares of the Fund to institutions and
individuals, directly or through brokers and other financial institutions that
have an agreement with the distributor. The Fund does not pay the distributor or
others for distribution services. The Adviser may pay fees to brokers and other
financial institutions selling Fund shares to compensate them for services they
provide to their customers.
The Fund's distributor may from time to time, in its sole discretion,
institute one or more promotional incentive programs for dealers, which will be
paid for by the distributor from any source available to it. Under any such
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13
<PAGE>
program, the distributor may provide incentives, in the form of cash or other
compensation, including merchandise, airline vouchers, trips and vacation
packages, to dealers selling shares of the Fund.
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FINANCIAL HIGHLIGHTS
The table that follows presents performance information about the Fund
shares and is intended to help you understand the Fund's financial performance
for the period of its operations. Some information reflects financial results
for a single Fund share. The total returns in the table represent the rate that
an investor would have earned (or lost) on an investment in the Fund, assuming
reinvestment of all of dividends and distributions. This information has been
audited by Arthur Andersen LLP, whose report, along with the Fund's financial
statements, are included in the Fund's annual report which is available upon
request.
For the Period
Ended May 31, 1999*
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Net Asset Value,
Beginning of Period $10.00
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Increase/Decrease from
Operations:
Net Investment Income (Loss) (0.01)
Net Realized and Unrealized
Gains on Securities 9.02
Total From Investment
Operations 9.01
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Less Distributions:
Dividends (from net
investment income) --
Distributions (from capital gains) --
Total Distributions --
Net Asset Value, End of Period 19.01
Total Return 90.10%
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Ratios/Supplemental Data:
Net Assets, End of Period $9,975,000
Ratio of Expenses to
Average Net Assets(1) 1.50%
Ratio of Net Investment Income (Loss)
to Average Net Assets(2) (1.03)%
Portfolio Turnover Rate 251.60%
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*For the period June 29, 1998 (commencement of operations) through May 31, 1999.
All ratios for the period have been annualized. Total return for the period has
not been annualized.
(1)The annualized expense ratio without waivers and reimbursements for the
period ended May 31, 1999 would have been 10.18%.
(2)The annualized net investment income (loss) ratio without waivers and
reimbursements for the period ended May 31, 1999 would have been (9.71)%.
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WHERE TO FIND MORE
INFORMATION
More information about the Fund is available without charge through the
following:
STATEMENT OF ADDITIONAL INFORMATION (SAI)
The SAI dated September 24, 1999, includes detailed information about the
Fund. The SAI is on file with the SEC and is incorporated by reference into this
prospectus. This means that the SAI, for legal purposes, is a part of this
prospectus.
ANNUAL AND SEMI-ANNUAL REPORTS
These reports list the Fund's holdings and contain information from the
Fund's investment adviser about strategies and recent market conditions and
trends. The reports also contain detailed financial information about the Fund.
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14
<PAGE>
TO OBTAIN MORE INFORMATION
By Telephone: Call toll-free at (877) 44-NEVIS
By Mail: Write to us:
The Nevis Fund, Inc.
c/o SEI Investments Mutual
Fund Services
530 East Swedesford Road
Wayne, PA 19087
By Internet: www.nevisfund.com
From the SEC: You also can obtain the SAI or the annual and semi-annual
reports, as well as other information about the Fund, from the SEC's Web site
("http://www.sec.gov"). You may review and copy documents at the SEC Public
Reference Room in Washington, DC (for information call 1-800-SEC-0330). You may
request documents by mail from the SEC, upon payment of a duplicating fee, by
writing to: Securities and Exchange Commission, Public Reference Section,
Washington, DC 20549-6009. The Fund's Investment Company Act registration number
is 811-08689.
INVESTMENT ADVISER
Nevis Capital Management, Inc.
1119 St. Paul Street
Baltimore, MD 21202
DISTRIBUTOR
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
TRANSFER AGENT
Forum Shareholder Services, LLC
Two Portland Square
Portland, ME 04101
CUSTODIAN
First Union National Bank
123 South Broad Street
Philadelphia, PA 19109
INDEPENDENT PUBLIC ACCOUNTANTS
Arthur Andersen LLP
1601 Market Street
Philadelphia, PA 19103
LEGAL COUNSEL
Piper & Marbury L.L.P.
36 S. Charles Street
Baltimore, MD 21201
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15
<PAGE>
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TABLE OF CONTENTS
An Overview of the Fund........................ 2
Fees and Expenses of the Fund.................. 3
The Fund's Investments and Strategies.......... 4
More About Risk................................ 5
Purchasing and Selling Fund Shares............. 6
Dividends, Distributions and Taxes............. 12
Fund Management................................ 12
Financial Highlights........................... 14
Where to Find More Information................. 14
NEV-F-001-02
THE NEVIS FUND, INC.
PROSPECTUS
September 24, 1999
