R O C H D A L E
INVESTMENT TRUST
ROCHDALE MAGNA PORTFOLIO
ROCHDALE ALPHA PORTFOLIO
ROCHDALE ATLAS PORTFOLIO
PROSPECTUS
JULY 9, 1999
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ROCHDALE INVESTMENT TRUST
ROCHDALE MAGNA PORTFOLIO
ROCHDALE ALPHA PORTFOLIO
ROCHDALE ATLAS PORTFOLIO,
SERIES OF ROCHDALE INVESTMENT TRUST
Rochdale Magna Portfolio is a large-cap domestic equity fund.
Rochdale Alpha Portfolio is a small- to medium-cap domestic equity fund.
Rochdale Atlas Portfolio is a foreign equity fund.
Each Portfolio seeks to provide investors with long-term capital appreciation.
TABLE OF CONTENTS
An Overview of the Portfolios................................................ 2
Fees and Expenses............................................................ 5
Investment Objectives and Principal Investment Strategies.................... 6
Principal Risks of Investing in the Portfolios............................... 10
Investment Advisor........................................................... 11
Shareholder Information...................................................... 11
Pricing of Portfolio Shares.................................................. 15
Dividends and Distributions.................................................. 15
Tax Consequences............................................................. 15
Distribution Arrangements.................................................... 15
Financial Highlights......................................................... 16
AS WITH ALL MUTUAL FUNDS, THE SECURITIES AND EXCHANGE COMMISSION DOES NOT
APPROVE OR DISAPPROVE OF THESE SHARES OR DETERMINE WHETHER THE INFORMATION IN
THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. IT IS A CRIMINAL OFFENSE FOR ANYONE TO
INFORM YOU OTHERWISE.
THE DATE OF THIS PROSPECTUS IS JULY 9, 1999
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AN OVERVIEW OF THE PORTFOLIOS
ROCHDALE MAGNA PORTFOLIO
INVESTMENT GOAL
The Portfolio seeks long-term capital appreciation.
INVESTMENT STRATEGIES
The Portfolio invests primarily in equity securities of larger U.S. companies.
The Portfolio selects from the S&P 500 universe approximately 50 attractively
valued companies that Rochdale considers industry leaders across both cyclical
and steady growth industry groups. As an enhanced approach to broad market
investing, the Portfolio expects over the long term to generate incremental
returns greater than the S&P 500, although there can be no assurance that the
Portfolio will do so.
PRINCIPAL RISKS
As with all funds, there is the risk that you could lose money on your
investment in the Portfolio. For example, the following risks could affect the
value of your investment:
* The stock market goes down.
* Interest rates rise, which can result in a decline in the equity market.
* The market undervalues the stocks held by the Portfolio.
* The stocks held by the Portfolio fail to grow their earnings.
WHO MAY WANT TO INVEST
The Portfolio may be appropriate for investors who:
* Are pursuing a long-term investment goal.
* Want to create a large company foundation for their equity portfolio.
* Are seeking broad-based industry, sector, and market cycle exposure.
* Are willing to accept swings in the value of their portfolio, commensurate
with that of the broad market, with the offsetting goal of earning higher
long-term total return.
The Portfolio may not be appropriate for investors who:
* Are pursuing a short-term goal.
* Wish to have their equity allocation invested more aggressively, in smaller
companies only.
* Need regular income.
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ROCHDALE ALPHA PORTFOLIO
INVESTMENT GOAL
The Portfolio seeks long-term capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
The Portfolio invests primarily in equity securities of small and medium-size
U.S. companies. Companies are selected through intensive research and due
diligence, with a focus on a company's fundamental characteristics. Companies
selected are expected to grow earnings at a rate above that of larger, more
established companies, and therefore the Portfolio expects over the long term to
generate returns greater than that of the broad market, although there can be no
assurance that the Portfolio will do so. Commensurate with these higher expected
returns comes greater volatility.
PRINCIPAL RISKS
As with all funds, there is the risk that you could lose money on your
investment in the Portfolio. For example, the following risks could affect the
value of your investment:
* The stock market goes down.
* Interest rates rise, which can result in a decline in the equity market.
* The market undervalues the stocks held by the Portfolio.
* The stocks held by the Portfolio fail to grow their earnings.
* The stocks held by the Portfolio exhibit characteristics typical of small
companies. Smaller companies are typically more volatile and less liquid
than larger companies.
WHO MAY WANT TO INVEST
The Portfolio may be appropriate for investors who:
* Are pursuing a long-term investment goal.
* Want to diversify their equity portfolio and enhance return potential by
investing in small and medium-size companies.
* Are willing to accept swings in the value of their portfolio with the
offsetting goal of earning higher long-term total return.
The Portfolio may not be appropriate for investors who:
* Are pursuing a short-term goal.
* Need regular income.
* Wish to have their equity allocation invested in large companies only.
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ROCHDALE ATLAS PORTFOLIO
INVESTMENT GOAL
The Portfolio seeks long-term capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
The Portfolio invests primarily in equity securities of foreign companies,
including those in emerging markets. In selecting securities, Rochdale focuses
on those countries that appear attractively valued relative to other countries.
Rochdale then selects securities to represent each selected country's broad
market. The Portfolio invests a minimum of 40% of its assets in securities of
foreign developed markets. The Portfolio may also invest in options, futures,
and other types of derivatives, as well as country funds, as a way to
efficiently adjust its exposure to various securities, markets, and currencies.
PRINCIPAL RISKS
As with all funds, there is the risk that you could lose money on your
investment in the Portfolio. For example, the following risks could affect the
value of your investment:
* The stock market goes down.
* Interest rates rise, which can result in a decline in the equity market.
* The market undervalues the stocks held by the Portfolio.
* Adverse developments occur in foreign markets. These investments involve
greater risk, including currency fluctuation risk, which may affect the
value of securities held by the Portfolio.
* Derivatives held by the Portfolio vary from Rochdale's expectation of
movements in securities, foreign exchange, and interest rate markets.
WHO MAY WANT TO INVEST
The Portfolio may be appropriate for investors who:
* Are pursuing a long-term investment goal.
* Want to diversify their equity portfolio and enhance return potential by
investing in foreign markets.
* Are seeking access to world economic growth.
* Are willing to accept swings in the value of their portfolio with the
offsetting goal of earning higher long-term total return.
The Portfolio may not be appropriate for investors who:
* Are pursuing a short-term goal.
* Need regular income.
* Wish to have their equity allocation invested in domestic stocks only.
* Do not want to invest in emerging markets.
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PERFORMANCE
Because the Portfolios have been operating for less than a full calendar year,
no performance data is shown.
FEES AND EXPENSES
This table describes the fees and expenses that you may pay if you buy and hold
shares of the Portfolios.
<TABLE>
<CAPTION>
Rochdale Magna Rochdale Alpha Rochdale Atlas
Portfolio Portfolio Portfolio
-------------- -------------- --------------
<S> <C> <C> <C>
SHAREHOLDER FEES
(fees paid directly from your investment)
Maximum sales charge (load) imposed on
purchases (as a percentage of offering price).... None None None
Maximum deferred sales charge (load)
(as a percentage of the lower of original
purchase price or redemption proceeds) .......... None None None
Redemption Fee (as a percentage of amount
redeemed)* ...................................... 2.00% 2.00% 2.00%
ANNUAL FUND OPERATING EXPENSES**
(expenses that are deducted from Portfolio assets)
Management Fees ................................... 1.00% 1.00% 1.00%
Distribution and Service (12b-1) Fees ............. 0.25% 0.25% 0.25%
Other Expenses .................................... 1.25% 1.50% 1.75%
---- ---- ----
Total Annual Fund Operating Expenses .............. 2.50% 2.75% 3.00%
---- ---- ----
Fee Reduction and/or Expense Reimbursement ........ (0.75)% (0.90)% (1.05)%
---- ---- ----
Net Expenses ...................................... 1.75% 1.85% 1.95%
==== ==== ====
</TABLE>
- ----------
* The redemption fee applies only to those shares that you have held for
eighteen months or less. The fee is payable to the Portfolios and is intended to
benefit the remaining shareholders by reducing the costs of short-term trading.
** Other expenses have been estimated for the first full fiscal year of the
Portfolios. Rochdale has contractually agreed to reduce its fees and/or pay
expenses for each Portfolio's total annual operating expenses (excluding
interest and taxes) to the net expense amounts shown. This contract has a
one-year term, renewable annually.
EXAMPLE
This Example is intended to help you compare the costs of investing in the
Portfolios with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in a Portfolio for the time periods
indicated, that your investment has a 5% return each year and that the
Portfolio's operating expenses remain the same. This Example uses net annual
operating expenses for the first year and total operating expenses for three
years. Assuming the Advisor continues to reimburse the Portfolios, your actual
expenses could be lower. Although your actual costs may be higher or lower,
under the assumptions, your costs would be:
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Rochdale Magna Rochdale Alpha Rochdale Atlas
Portfolio Portfolio Portfolio
-------------- -------------- --------------
If you redeem your shares:
One Year ........................ $378 $388 $398
Three Years ..................... $779 $582 $927
If you do not redeem your shares:
One Year ........................ $178 $188 $198
Three Years ..................... $779 $582 $927
INVESTMENT OBJECTIVES AND PRINCIPAL INVESTMENT STRATEGIES
ROCHDALE MAGNA PORTFOLIO
INVESTMENT OBJECTIVE
The Rochdale Magna Portfolio seeks long-term capital appreciation.
INVESTMENT PHILOSOPHY
Through investment in select large, leading U.S. companies across a wide variety
of industries, the Portfolio attempts to realize attractive long-term
performance relative to the S&P 500 universe as a whole.
The Portfolio takes an enhanced approach to broad market investing. Rochdale
believes that exposure to the most attractive companies within both the cyclical
and steady growth industries provides the best opportunity for long-term capital
appreciation in the large company asset class. In the shorter term, the market's
preference for either industry group fluctuates. Longer-term investors require
effective exposure to a wide variety of economic sectors in both cyclical and
steady growth industry groups.
INVESTMENT STRATEGY
Companies are considered cyclical or steady growth based on specific industry
characteristics. Cyclical growth companies experience greater fluctuations
related to the economy, while steady growth companies are less influenced by
economic cycles.
Rochdale employs two distinct proprietary fundamental methodologies to select
companies from the cyclical and steady growth industry groups. The fundamental
measures predictive of superior performing companies differ between these
industry groups. Steady growth companies are evaluated on earnings growth, price
momentum, and analyst sentiment. Cyclical growth companies are evaluated based
on their ability to generate cash flow growth and their price momentum, which
helps identify those companies most likely to achieve earlier market recognition
for their growth.
Rochdale's sensitivity to the different predictors between the cyclical and
steady growth industries leads the Portfolio to invest in only the most
attractive companies from these industry groups. The leading companies that are
selected from these two universes are screened further for their appropriateness
in light of expected economic and market conditions. The companies selected are
then subject to the process of portfolio optimization, a sophisticated technique
used to achieve broad economic sector diversification and managed variability in
line with the characteristics of the S&P 500.
The Portfolio invests primarily in equity securities of U.S. companies that have
a market capitalization in excess of $1 billion. The companies selected for
investment generally will have characteristics similar to companies included in
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the S&P 500 Index universe. Investments in common stock are emphasized, but the
Portfolio may also buy other types of equity securities, including preferred
stocks, convertible securities, or warrants.
Although not principal investment strategies, the Portfolio may also invest in
smaller companies and in foreign securities, including those of emerging
markets, as well as sell securities short, use derivative instruments and
related investment techniques to hedge equity exposure, for investment gain, or
for other purposes considered appropriate by Rochdale to meet the Portfolio's
investment goal. Although the Portfolio is diversified, at times, as a result of
the Portfolio's strategy or due to price volatility, the Portfolio may have more
than 5% of its assets invested in a single issuer.
Under normal conditions, the Portfolio will stay fully invested in accordance
with its investment strategy. However, the Portfolio may temporarily depart from
its principal investment strategies by making short-term investments in cash
equivalents in response to adverse market, economic, or political conditions.
This may result in the Portfolio not achieving its investment objective.
Rochdale continuously monitors the fundamentals and business performance of each
company and will replace a company whose fundamentals change materially with a
more attractive company. Under normal market conditions, portfolio turnover is
not expected to exceed 50%. This should result in the realization and
distribution to shareholders of lower capital gains, which would be considered
tax efficient. Less frequent trading also leads to lower transaction costs,
which could contribute to performance.
ROCHDALE ALPHA PORTFOLIO
INVESTMENT OBJECTIVE
The Rochdale Alpha Portfolio seeks long-term capital appreciation.
INVESTMENT PHILOSOPHY
Through investment in select small and medium-size companies, the Portfolio
attempts to capture the higher returns associated with faster-growing, smaller
companies in prospering economic sectors.
Long-term investment success in small and medium-size companies requires
intensive research and due diligence, as well as investor patience to realize a
company's growth potential. Rochdale's approach to small and medium-size company
research involves comprehensive analysis of each company, including earnings
growth, management interviews, and valuation.
INVESTMENT STRATEGY
Rochdale uses information from a variety of sources - including financial
statements, industry studies, and discussions with company management and their
competitors, suppliers, and customers - to assess the prospects for growth in
revenue and earnings, as well as potential stock price appreciation.
Each company selected for investment is subject to Rochdale's proprietary
research process. Rochdale evaluates key company and industry attributes within
eight categories, including business dynamics, operational practices, earnings
growth, operating environment, revenue growth, balance sheet, management
quality, and valuation. For those companies that meet Rochdale's fundamental
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criteria, Rochdale develops proprietary financial models to determine the
valuation level at which it considers the stock attractively priced. The
qualities that Rochdale looks for include:
* fundamentally strong business
* sustainable competitive advantage
* above-average industry growth
* experienced management
* growing earnings
* attractive valuation
The Portfolio invests primarily in equity securities of U.S. companies that have
a market capitalization less than $10 billion. The companies selected for
investment generally will have characteristics similar to companies included in
the S&P MidCap 400 and S&P SmallCap 600 Indices universe. Although not principal
investment strategies, the Portfolio may also invest in larger companies and in
foreign securities, including those of emerging markets, as well as sell
securities short, use derivative instruments and related investment techniques
to hedge equity exposure, for investment gain, or for other purposes considered
appropriate by Rochdale to meet the Portfolio's investment goal. Although the
Portfolio is diversified, at times, as a result of the Portfolio's strategy or
due to price volatility, the Portfolio may have more than 5% of its assets
invested in a single issuer.
Under normal conditions, the Portfolio will stay fully invested in accordance
with its investment strategy. However, the Portfolio may temporarily depart from
its principal investment strategies by making short-term investments in cash
equivalents in response to adverse market, economic, or political conditions.
This may result in the Portfolio not achieving its investment objective.
Once purchased, companies are monitored for changes in their fundamentals and in
industry conditions. The Portfolio will continue to own a company as long as its
revenue and earnings growth continue in line with expectations, valuation is
attractive, and industry trends remain favorable. It is anticipated that the
Portfolio's turnover will not exceed 150%, consistent with similar smaller stock
investment strategies. A higher portfolio turnover rate (100% or more) can
result in higher transaction costs and higher tax liability.
ROCHDALE ATLAS PORTFOLIO
INVESTMENT OBJECTIVE
The Rochdale Atlas Portfolio seeks long-term capital appreciation.
INVESTMENT PHILOSOPHY
Through investment in blue-chip foreign companies of select developed and
emerging foreign markets, the Portfolio attempts to achieve long-term
performance in excess of broad world markets.
The Portfolio has a unique approach to investing internationally. Rochdale's
research focuses on country selection, which empirical studies demonstrate is
the key to earning competitive international returns. The Portfolio invests in
leading companies selected from only those foreign developed and emerging
markets Rochdale identifies as most attractive, based on measures of valuation
and economic growth. Such selectivity creates a greater potential for higher
returns as compared to investing across many markets.
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INVESTMENT STRATEGY
Rochdale uses its proprietary country analysis methodology, analyzing each
country's aggregate macroeconomic, company fundamental, and market sentiment
measures, to determine which foreign markets are likely to generate the highest
returns. The foreign markets most worthy of investment have:
* higher forecasted GDP
* lower valuation relative to growth
* higher equity risk premiums
* higher current account relative to GDP
* positive analyst sentiment
After identifying those countries worthy of investment, Rochdale uses a global
equity optimization process to invest in each country's leading companies across
the industries driving economic growth. This sophisticated process enables
Rochdale to develop a portfolio that captures substantially all of the combined
top-ranked countries' stock market movements with only a few companies per
selected country. The Portfolio invests in the blue-chip companies in each
country. Each company must meet Rochdale's standards for market and industry
representation, financial condition, credit rating, and liquidity. A minimum of
40% is invested in developed markets.
The Portfolio invests primarily in equity securities of foreign-domiciled,
publicly traded companies worldwide. Equity securities include common stocks,
Depositary Receipts, warrants, convertible bonds, debentures, and convertible
preferred stocks. In general, countries and companies eligible for investment
are those included in the Dow Jones World Index, excluding the U.S.
Depending on the circumstances and opportunities that might arise, and given the
volatile nature of foreign markets, the Portfolio may use country funds,
futures, derivative instruments, or other securities as deemed appropriate by
Rochdale in seeking to maximize the efficiency of its country selection process
or hedge equity or currency exposure. An investment in an underlying mutual fund
will involve payment by the Portfolio of its pro rata share of advisory and
administrative fees charged by such country fund. Although not a principal
investment strategy, the Portfolio may also sell securities short. Although the
Portfolio is diversified, at times, as a result of the Portfolio's strategy or
due to price volatility, the Portfolio may have more than 5% of its assets
invested in a single issuer.
The Portfolio intends to be fully invested in accordance with its investment
strategy. However, the Portfolio may temporarily depart from its principal
investment strategies by making short-term investments in cash equivalents in
response to adverse market, economic, or political conditions. This may result
in the Portfolio not achieving its investment objective.
The Portfolio sells a holding if another company provides more suitable country
representation or if a country is no longer an attractive investment. Due to the
longer-term nature of the country and stock selection criteria, the Portfolio
expects to have a turnover rate of less than 100%. A lower portfolio turnover
rate should result in the realization and distribution to shareholders of lower
capital gains and lower resultant tax liability. Less frequent trading also
leads to lower transaction costs, which could contribute to performance.
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PRINCIPAL RISKS OF INVESTING IN THE PORTFOLIOS
The principal risks of investing in the Portfolios that may adversely affect a
Portfolio's net asset value or total return are discussed above in "An Overview
of the Portfolios." These risks are discussed in more detail below.
MARKET RISK. The risk that the market value of a security may move up and down,
sometimes rapidly and unpredictably. These fluctuations may cause a security to
be worth less than the price originally paid for it, or less than it was worth
at an earlier time. Market risk may affect a single issuer, industry or sector
of the economy, or the market as a whole.
SMALL AND MEDIUM-SIZE COMPANIES RISK. Although each of the Portfolios may invest
in the securities of small and medium-size companies, the Rochdale Alpha
Portfolio will concentrate its investments in these types of securities.
Investing in securities of small- and mid-capitalization companies involves
greater risk than investing in larger companies, because small companies can be
subject to more abrupt or erratic share price changes than can larger companies.
Smaller companies typically have more limited product lines, markets, or
financial resources than larger companies, and their management may be dependent
on a limited number of key individuals. Small companies may have limited market
liquidity, and their prices may be more volatile. These risks are greater when
investing in the securities of newer small companies. As a result, small company
stocks, and therefore a Portfolio, may fluctuate significantly more in value
than will larger company stocks and mutual funds that focus on them.
FOREIGN SECURITIES RISK. Although each of the Portfolios may invest in foreign
securities, the Rochdale Atlas Portfolio will concentrate its investments in the
securities of foreign companies. The risk of investing in the securities of
foreign companies is greater than the risk of investing in domestic companies.
Some of these risks include: (1) unfavorable changes in currency exchange rates,
(2) economic and political instability, (3) less publicly available information,
(4) less strict auditing and financial reporting requirements, (5) less
governmental supervision and regulation of securities markets, (6) higher
transaction costs, and (7) greater possibility of not being able to sell
securities on a timely basis. These risks are more pronounced when investing in
foreign securities in emerging markets.
DERIVATIVES RISK. The use of derivative instruments involves risks different
from, or greater than, the risks associated with investing directly in
securities and other more traditional investments. Derivatives are subject to a
number of risks described elsewhere in this section, including market risk,
liquidity risk, and the credit risk of the counterparty to the derivatives
contract. Since their value is calculated and derived from the value of other
assets, instruments or references, there is greater risk that derivatives will
be improperly valued. Derivatives also involve the risk that changes in the
value of the derivative may not correlate perfectly with relevant assets, rates
or indices they are designed to hedge or to closely track.
Specific risks associated with the use of derivatives include:
CREDIT AND COUNTERPARTY RISK. If the issuer of, or the counterparty to, the
derivative does not make timely principal, interest or other payment when due,
or otherwise fulfill its obligations, a Portfolio could lose money on its
investment. A Portfolio is exposed to credit risk, especially when it uses
over-the-counter derivatives (such as swap contracts) or it engages to a
significant extent in the lending of Portfolio securities or use of repurchase
agreements.
LIQUIDITY RISK. Liquidity risk exists when particular investments are difficult
to purchase or sell due to a limited market or to legal restrictions, such that
a Portfolio may be prevented from selling particular securities at the price at
which a Portfolio values them.
MANAGEMENT RISK. The Advisor may fail to use derivatives effectively. For
example, the Advisor may choose to hedge or not to hedge at inopportune times.
This will adversely affect the Portfolios' performance.
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YEAR 2000 RISK. The Portfolios could be adversely affected if the computer
systems used by the Advisor and other service providers do not properly process
and calculate information related to dates beginning January 1, 2000. This is
commonly known as the "Y2K Problem." This situation may negatively affect the
companies in which the Portfolios invest and, by extension, the value of the
Portfolios' shares. Although the Portfolios' service providers are taking steps
to address this issue, there may still be some risk of adverse effects. To the
extent the Portfolios invest in foreign companies, there will be a greater
degree of Y2K Problem risk, because foreign countries are not as advanced in
dealing with this issue as is the U.S.
INVESTMENT ADVISOR
Rochdale Investment Management Inc. is the investment advisor to the Portfolios.
Rochdale is located at 570 Lexington Avenue, New York, NY 10022-6837. Rochdale
currently manages assets of more than $700 million for individual and
institutional investors. Rochdale provides advice on buying and selling
securities. Rochdale also furnishes the Portfolios with office space and certain
administrative services and provides most of the personnel needed by the
Portfolios. For its services, each Portfolio pays Rochdale a monthly management
fee based upon the average daily net assets of the Portfolio at the rate of
1.00% annually.
PORTFOLIO MANAGERS
Mr. Carl Acebes and Mr. Garrett R. D'Alessandro are responsible for the
day-to-day management of the Portfolios. Mr. Acebes has been Rochdale's Chairman
and Chief Investment Officer since its founding. Mr. D'Alessandro is Rochdale's
President, Chief Executive Officer, and Director of Research, and is a Chartered
Financial Analyst. Mr. D'Alessandro joined Rochdale in 1986.
PORTFOLIO EXPENSES
Each Portfolio is responsible for its own operating expenses. Rochdale has
contractually agreed to reduce its fees and/or pay expenses of the Portfolios to
ensure that each Portfolio's aggregate annual operating expenses (excluding
interest and tax expenses) will not exceed the limits set forth in the Expense
Table. Any reduction in advisory fees or payment of expenses made by Rochdale is
subject to reimbursement by the Portfolio if requested by Rochdale in subsequent
fiscal years. Rochdale may request this reimbursement if the aggregate amount
actually paid by a Portfolio toward operating expenses for such fiscal year
(taking into account the reimbursements) does not exceed the applicable
limitation on Portfolio expenses. Rochdale is permitted to be reimbursed for fee
reductions and/or expense payments made in the prior three fiscal years. (After
startup, each Portfolio is permitted to look for longer periods of four and five
years.) The Trustees will review any such reimbursement. Each Portfolio must pay
its current ordinary operating expenses before Rochdale is entitled to any
reimbursement of fees and/or expenses.
SHAREHOLDER INFORMATION
HOW TO BUY SHARES
You may open a Portfolio account with $10,000. You may make add to your account
at any time with investments of at least $5,000. The minimum investment
requirements may be waived from time to time at the Advisor's discretion.
INVESTMENT ADVISORY CLIENTS OF ROCHDALE SHOULD CONTACT THEIR FINANCIAL ADVISOR
OR ROCHDALE DIRECTLY FOR INVESTMENT INSTRUCTIONS.
There are several ways to purchase shares of the Portfolios. An Application
Form, which accompanies this Prospectus, is used if you send money directly to
the Portfolios by mail or by wire. To open an account by wire, to open a
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retirement plan account, or to purchase shares by overnight mail, or if you have
questions about how to invest or about how to complete the Application Form,
please call Rochdale at (212) 702-3500. You may also buy shares of the
Portfolios through your financial representative. After your account is open,
you may add to it at any time.
You may send money for investment by mail. If you are making an initial
investment in a Portfolio, complete the Application Form and mail it with a
check (made payable to Rochdale Magna Portfolio, Rochdale Alpha Portfolio, or
Rochdale Atlas Portfolio) to the following address:
Rochdale Magna Portfolio OR
Rochdale Alpha Portfolio OR
Rochdale Atlas Portfolio
State Street Bank
P.O. Box 1978
Boston, MA 02105-1978
If you wish to send your check via an overnight delivery service, you should
call Rochdale at (212) 702-3500 for instructions.
You may add to your account by mailing the stub attached to your account
statement, together with your check made payable to Rochdale Magna Portfolio,
Rochdale Alpha Portfolio, or Rochdale Atlas Portfolio, to the address noted
above. Your account number should be written on your check.
INVESTMENT ADVISORY CLIENTS OF ROCHDALE SHOULD CONTACT THEIR FINANCIAL ADVISOR
OR ROCHDALE DIRECTLY REGARDING SUBSEQUENT INVESTMENTS.
You may purchase shares of the Portfolios by tendering payment in the form of
shares of stock, bonds, or other securities. You may do this provided the
security being offered for the purchase of Portfolio shares is readily
marketable, its acquisition is consistent with the Portfolio's investment
objective, and the Advisor, at its discretion, finds it acceptable.
You may wire money to the Portfolios. If you are making an initial investment in
a Portfolio, you should call (212) 702-3500 between 9:00 a.m. and 4:00 p.m.,
Eastern time, on a day when the New York Stock Exchange ("NYSE") is open for
trading, in order to receive an account number. It is important to call and
receive this account number, because if your wire is sent without it or without
the name of the Portfolio, there may be a delay in investing the money you wire.
You should notify the Portfolios before making any wire transfer. You should
then ask your bank to wire money to:
State Street Bank
ABA Routing Number: 01 1000028, for credit to
Rochdale Alpha Portfolio, DDA #58407768 OR
Rochdale Atlas Portfolio, DDA #58407768 OR
Rochdale Magna Portfolio, DDA #58407768
for further credit to [your name and account number]
You should advise your bank to include the name of the Portfolio and your
account number with the wire. Your bank may charge you a fee for sending a wire
to the Portfolios.
You may buy and sell shares of the Portfolios through certain brokers (and their
agents) that have made arrangements with the Portfolios to sell their shares.
When you place your order with such a broker or its authorized agent, your order
is treated as if you had placed it directly with the Portfolios' Transfer Agent,
and you will pay or receive the next price calculated by the Portfolio. The
broker (or agent) holds your shares in an omnibus account in the broker's (or
agent's) name, and the broker (or agent) maintains your individual ownership
records. The Portfolios may pay the broker (or its agent) for maintaining these
records as well as providing other shareholder services. The broker (or its
agent) may charge you a fee for handling your order. The broker (or agent) is
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responsible for processing your order correctly and promptly, keeping you
advised regarding the status of your individual account, confirming your
transactions, and ensuring that you receive copies of the Portfolios'
prospectus.
AUTOMATIC INVESTMENT PLAN
For your convenience, the Portfolios offer an Automatic Investment Plan. Under
this Plan, after your initial investment, you authorize the Portfolio to
withdraw from your personal checking account each month an amount that you wish
to invest, which must be at least $1,000. If you wish to enroll in this Plan,
please contact the Distributor for an application. The Portfolios may terminate
or modify this privilege at any time. You may elect to terminate your
participation in the Plan at any time by notifying the Transfer Agent in
writing. The Transfer Agent must receive your termination letter sufficiently in
advance of the next scheduled withdrawal.
RETIREMENT PLANS
The Portfolios offer Individual Retirement Account ("IRA") and Roth IRA plans.
You may obtain information about opening an IRA account by contacting the
Distributor. If you wish to open another type of retirement plan, please contact
your securities dealer.
HOW TO EXCHANGE SHARES
INVESTMENT ADVISORY CLIENTS OF ROCHDALE SHOULD CONTRACT THEIR FINANCIAL ADVISOR
OR ROCHDALE DIRECTLY FOR INSTRUCTIONS ON HOW TO EXCHANGE SHARES.
You may exchange your Portfolio shares for shares of any other Portfolio offered
by this Prospectus on any day the Portfolios and the NYSE are open for business.
Your exchange of shares is considered a taxable event for you. In addition, an
exchange of shares held less than 18 months is subject to a 2.00% redemption
fee.
You may exchange your shares by sending a written request to the Portfolios. You
should give your account number and the number of shares or dollar amount to be
exchanged. The letter should be signed by all of the shareholders whose names
appear in the account registration.
If your account has telephone privileges, you may also exchange your shares by
calling (212) 702-3500 between the hours of 9:00 a.m. and 4:00 p.m. (Eastern
time). If you are exchanging shares by telephone, you will be subject to certain
identification procedures which are listed below under "How to Sell Shares." The
Portfolios may modify, restrict, or terminate the exchange privilege at any
time.
HOW TO SELL SHARES
INVESTMENT ADVISORY CLIENTS OF ROCHDALE SHOULD CONTACT THEIR FINANCIAL ADVISOR
OR ROCHDALE DIRECTLY FOR INSTRUCTIONS ON HOW TO REDEEM SHARES.
You may sell (redeem) your Portfolio shares on any day the Portfolio and the
NYSE are open for business either directly to the Portfolio or through your
investment representative. You will pay a 2.00% redemption fee if you are
redeeming shares that you purchased in the past eighteen months. This fee is
paid to the Portfolio. The Portfolios impose a redemption fee in order to reduce
the transaction costs and tax effects of a short-term investment in the
Portfolios.
REDEMPTIONS BY MAIL
You may redeem your shares by sending a written request to the Portfolios. You
should give your account number and state whether you want all or some of your
shares redeemed. The letter should be signed by all of the shareholders whose
names appear in the account registration. You should send your redemption
request to the Portfolios at the following address:
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<PAGE>
Rochdale Magna Portfolio OR
Rochdale Alpha Portfolio OR
Rochdale Atlas Portfolio
State Street Bank
P.O. Box 1978
Boston, MA 02105-1978
REDEMPTIONS BY TELEPHONE
If you have completed the Redemption by Telephone portion of the Account
Application, you may redeem some or all of your shares by telephone. You may
redeem by calling Rochdale at (212) 702-3500 between the hours of 9:00 a.m. and
4:00 p.m., Eastern time. Redemption proceeds will be mailed to the address that
appears on the Transfer Agent's records. You may also request that your
redemption proceeds be wired to a predesignated bank. The minimum amount that
may be wired is $1,000. Wire charges, if any, will be deducted from your
redemption proceeds. Telephone redemptions cannot be made if you notify the
Transfer Agent of a change of address within 30 days before the redemption
request. You may not use the telephone redemption for retirement accounts.
When you establish telephone privileges, you are authorizing the Portfolios and
their Transfer Agent to act upon the telephone instructions of the person or
persons you have designated in your Account Application. Such persons may
request that the shares in your account be exchanged or redeemed. Redemption
proceeds will be transferred to the bank account you have designated on your
Account Application.
Before executing an instruction received by telephone, the Portfolios and the
Transfer Agent may use procedures to confirm that the telephone instructions are
genuine. These procedures will include recording the telephone call and asking
the caller for a form of personal identification. If the Portfolios and the
Transfer Agent follow these procedures, they will not be liable for any loss,
expense, or cost arising out of any telephone redemption or exchange request
that is reasonably believed to be genuine. This includes any fraudulent or
unauthorized request.
You may request telephone redemption privileges after your account is opened by
contacting the Distributor for an authorization form. You will be required to
submit the completed authorization form with a signature guarantee.
You may have difficulties in making a telephone redemption during periods of
abnormal market activity. If this occurs, you may make your redemption request
in writing.
Payment of your redemption proceeds will be made promptly, but not later than
seven days after receipt of your written request in proper form. If you request
a redemption in writing, your request must have a signature guarantee attached
if the amount to be redeemed exceeds $5,000. Other documentation may be required
for certain types of accounts. If you did not purchase your shares with a
certified check or wire, the Portfolios may delay payment of your redemption
proceeds up to 15 days from the date of purchase or until your check has
cleared, whichever occurs first.
Each Portfolio may redeem the shares in your account if the value of your
account is less than $5,000 as a result of redemptions you have made. This does
not apply to retirement plan or Uniform Gifts or Transfers to Minors Act
accounts. You will be notified that the value of your account is less than
$5,000 before the Portfolio makes an involuntary redemption. You will then have
30 days in which to make an additional investment to bring the value of your
account to at least $5,000 before the Portfolio takes any action.
The Portfolios have the right to pay redemption proceeds in whole or in part by
a distribution of securities from its portfolio. It is not expected that the
Portfolios would do so except in unusual circumstances.
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<PAGE>
PRICING OF PORTFOLIO SHARES
The price of each Portfolio's shares is based on the Portfolio's net asset
value. The net asset value of the Portfolio's shares is determined by dividing
the Portfolio's assets, minus its liabilities, by the number of shares
outstanding. The Portfolio's assets are the market value of securities it holds,
plus any cash and other assets. The Portfolio's liabilities are fees and
expenses it owes. The number of Portfolio shares outstanding is the amount of
shares that have been issued to shareholders. The price you will pay to buy
Portfolio shares or the amount you will receive when you sell your Portfolio
shares is based on the net asset value next calculated after your order is
received by the Transfer Agent with complete information and meeting all the
requirements discussed in this Prospectus.
The net asset value of each Portfolio's shares is determined as of the close of
regular trading on the NYSE. This is normally 4:00 p.m., Eastern time. Portfolio
shares will not be priced on days that the NYSE is closed for trading (including
certain U.S. holidays).
DIVIDENDS AND DISTRIBUTIONS
The Portfolios will make distributions of dividends and capital gains, if any,
annually, usually on or about December 31. Distributions are automatically
reinvested in shares of the Portfolio making the distribution. If you wish to
receive your distributions in cash, contact Rochdale at (212) 702-3500 before
the payment of the distribution.
TAX CONSEQUENCES
Dividends are taxable to you as ordinary income. The rate you pay on capital
gain distributions will depend on how long the Portfolio held the securities
that generated the gains, not on how long you owned your Portfolio shares. You
will be taxed in the same manner whether you receive your dividends and capital
gain distributions in cash or reinvest them in additional Portfolio shares.
If you sell or exchange your Portfolio shares, it is considered a taxable event
for you. Depending on the purchase price and the sale price of the shares you
sell or exchange, you may have a gain or a loss on the transaction. You are
responsible for any tax liabilities generated by your transaction.
DISTRIBUTION ARRANGEMENTS
The Portfolios have adopted a distribution plan under Rule 12b-1. This rule
allows the Portfolios to pay distribution fees for the sale and distribution of
their shares and for services provided to their shareholders. The distribution
and service fee is at an annual rate of 0.25% of each Portfolio's average daily
net assets, which is payable to the Advisor, as Distributor. Because these fees
are paid out of a Portfolio's assets on an ongoing basis, over time these fees
will increase the cost of your investment and may cost you more than paying
other types of sales charges. The Advisor does not expect to charge a
distribution fee during the Portfolios' first year of operations.
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<PAGE>
FINANCIAL HIGHLIGHTS
The tables below show the performance of the Rochdale Magna Portfolio and the
Rochdale Atlas Portfolio during their past fiscal period. The Rochdale Alpha
Portfolio commenced operations on June 1, 1999, and, accordingly, has no
financial information to report. "Total return" shows how much your investment
in a Portfolio would have increased or decreased during that period, assuming
you have reinvested all dividends and distributions. This information has been
audited by Tait, Weller & Baker, Independent Certified Public Accountants. Their
reports and the Portfolios' financial statements are included in the Annual
Report, which is available upon request.
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING THROUGHOUT THE PERIOD
- ------------------------------------------------------------------------------------------
ROCHDALE ROCHDALE
MAGNA ATLAS
PORTFOLIO PORTFOLIO
-------------------------------------
June 29, 1998* through March 31, 1999
- ------------------------------------------------------------------------------------------
<S> <C> <C>
Net asset value, beginning of period .............. $25.00 $25.00
------ ------
Income from investment operations:
Net investment loss ............................. (0.02) --
Net realized and unrealized gain ................ 4.30 5.52
------ ------
Total from investment operations .................. 4.30 5.52
------ ------
Net asset value, end of period .................... $29.28 $30.52
====== ======
Total return ...................................... 17.12%** 20.08%***
Ratios/supplemental data:
Net assets, end of period (millions) ............ $ 8.1 $ 10.1
Portfolio turnover rate ........................... 47.81% 22.90%
Ratio of expenses to average net assets:
Before expense reimbursement and waivers ........ 6.19%++ 7.79%++
After expense reimbursement and waivers ......... 1.60%++ 1.61%++
Ratio of net investment loss to average net assets:
Before expense reimbursement and waivers ........ (4.88%)++ (6.26%)++
After expense reimbursement and waivers ......... (0.29%)++ (0.08%)++
</TABLE>
* Inception of Portfolios.
** Commencement of investment operations, October 23, 1998.
*** Commencement of investment operations, October 2, 1998.
++ Annualized.
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ADVISOR
Rochdale Investment Management Inc.
570 Lexington Avenue
New York, New York 10022-6837
(212) 702-3500
--
DISTRIBUTOR
Rochdale Investment Management Inc.
570 Lexington Avenue
New York, New York 10022-6837
(212) 702-3500
--
CUSTODIAN AND TRANSFER AGENT
State Street Bank & Trust
1776 Heritage Drive
North Quincy, Massachusetts 02171
--
AUDITORS
Tait, Weller & Baker
8 Penn Center, Suite 800
Philadelphia, Pennsylvania 19103
--
LEGAL COUNSEL
Paul, Hastings, Janofsky & Walker LLP
345 California Street, 29th Floor
San Francisco, California 94104
<PAGE>
ROCHDALE INVESTMENT TRUST
570 Lexington Avenue
New York, NY 10022-6837
800-245-9888
www.rochdale.com
You can discuss your questions about the Portfolios, and request other
information, including Statement of Additional Information (SAI), Annual Report
or Semi-Annual Report, free of charge, by calling the Portfolios at 800-245-9888
or visiting our Web site at www.rochdale.com. In the Portfolios' Annual Reports,
you will find a discussion of the market conditions and investment strategies
that significantly affected the Portfolios' performance during their last fiscal
year. The SAI provides detailed information about the Portfolios and is
incorporated into this Prospectus by reference.
You can review and copy information about the Portfolios, including the
Portfolios' reports and SAI, at the Public Reference Room of the Securities and
Exchange Commission, or get copies for a fee, by writing or calling the Public
Reference Room of the Commission, Washington, DC 20549-6009 (1-800-SEC-0330).
You can obtain the same information free of charge from the Commission's
Internet Web site at http://www.sec.gov.
(The Trust's SEC Investment Company Act file number is 811-8685)
