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THE AMERICAN TIGER FUNDS
The American Tiger Funds (the "Fund") is an open-end management investment
company which offers its shares in a series of load, non-diversified portfolios
which invest in stocks which the Fund's investment advisor believes to be among
the best stocks available at any given time based on its quantitative analysis,
applying its proprietary modern portfolio theory analysis. The Fund is presently
offering its shares in one Portfolio: The American Tiger Top 20 ("Top 20"), a
non-diversified, open-end management company portfolio with the authority to
invest in a full range of equity securities. The investment objective is to
attain capital appreciation through investment in equity securities which the
investment advisor believes to represent the best investment opportunities at
any given time. Additional non-diversified or diversified portfolios may be
added to the Fund in the future. There can be no assurance that the Portfolios
of the Fund will achieve their investment objectives.
This Prospectus sets forth concisely the information about the Fund that a
prospective investor should know before investing and should be read and
retained for future reference.
A Statement of Additional Information about the Fund has also been filed
with the Securities and Exchange Commission. The Statement of Additional
Information is, and the Fund's Annual and Semi-Annual Reports will be, available
upon request and without charge by calling or writing The American Tiger Funds
c/o GSG Securities, Inc., 980 North Federal Highway, Suite 210, Boca Raton, FL
33432; Telephone: 1-800-723-3326. Shareholders may also call toll-free or write
to Chatfield Dean with any questions they may have.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
NO DEALER, SALESMAN, OR OTHER PERSON HAS BEEN AUTHORIZED TO GIVE ANY
INFORMATION OR TO MAKE ANY REPRESENTATIONS, OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS, AND, IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATIONS
MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY THE FUND, ITS INVESTMENT
ADVISER, OR ITS DISTRIBUTOR. THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO BUY
ANY OF THE SECURITIES OFFERED HEREBY IN ANY STATE TO ANY PERSON TO WHOM IT IS
UNLAWFUL TO MAKE SUCH AN OFFER IN SUCH STATE.
DISTRIBUTOR AND SALES INFORMATION
GSG SECURITIES, INC.
980 NORTH FEDERAL HIGHWAY, SUITE 210
BOCA RATON, FL 33432
1-800-723-3326
THE DATE OF THIS PROSPECTUS IS SEPTEMBER 30, 1998.
AS REVISED JANUARY 27, 1999
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TABLE OF CONTENTS
<TABLE>
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PAGE
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<S> <C>
SHAREHOLDER TRANSACTION EXPENSES AND ANNUAL FUND OPERATING EXPENSES....... 1
SUMMARY................................................................... 4
INVESTMENT OBJECTIVES AND POLICIES........................................ 6
SPECIAL INVESTMENT METHODS AND RISKS...................................... 8
INVESTMENT RESTRICTIONS................................................... 9
RISK FACTORS.............................................................. 10
PERFORMANCE............................................................... 13
MANAGEMENT OF THE FUND.................................................... 14
EXPENSES OF THE FUND...................................................... 15
REPORTS AND INFORMATION................................................... 16
DESCRIPTION OF SHARES..................................................... 17
DIVIDENDS AND DISTRIBUTIONS............................................... 18
TAXES..................................................................... 19
PURCHASE AND PRICING OF SHARES............................................ 21
REDEMPTION OF SHARES...................................................... 24
CERTAIN SERVICES PROVIDED TO SHAREHOLDERS................................. 26
ADDITIONAL INFORMATION.................................................... 27
ASSENT TO TRUST INSTRUMENT................................................ 28
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SHAREHOLDER TRANSACTION EXPENSES
AND ANNUAL FUND OPERATING EXPENSES
<TABLE>
<CAPTION>
THE
AMERICAN
TIGER TOP
20
PORTFOLIO
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<S> <C>
SHAREHOLDER TRANSACTION EXPENSES(1)
Maximum Sales Load Imposed on Purchases(5)
(as a percentage of offering price).............................................. 4.95%
Maximum Sales Load Imposed on Reinvested Dividends................................. None
Redemption Fees.................................................................... None
Exchange Fee(3).................................................................... 0-$5
ANNUAL FUND OPERATING EXPENSES
(AS A PERCENTAGE OF AVERAGE NET ASSETS)
Management Fees(4)................................................................. 1.00%
12b-1 Fees(2)...................................................................... 0.25%
Other Expenses..................................................................... 0.25%
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Total Fund Operating Expenses...................................................... 1.50%
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</TABLE>
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(1) The above table of fees and other expenses is provided to assist you in
understanding the various potential costs and expenses that an investor in
the Fund may bear directly or indirectly. The Investment Advisor may, but is
under no obligation to, reimburse the Fund's expenses now or in the future.
The American Tiger Top 20 Portfolio is a newly organized portfolio which has
been in existence since September 30, 1998 and has no operating history.
(2) The American Tiger Top 20 Portfolio charges an annual 0.25% 12b-1 fee
payable to the distributor or brokers who have signed a selling agreement
with the Fund. The applicable Portfolio of the Fund pays these brokers or
the distributor annually 0.25% of the value of the assets of the applicable
Portfolio of the Fund which were obtained by said broker or distributor. The
fee is paid to the broker or distributor for continuous personal services
and distribution services by such broker or distributor to investors in the
applicable Portfolio. Investors may also be charged a transaction fee if
they effect transactions in fund shares through a broker or agent. Long-term
shareholders in the Fund may pay more than the economic equivalent of the
maximum front-end sales charge permitted by the National Association of
Securities Dealers ("NASD").
(3) Shares of each of the portfolios may be exchanged for shares of each other
portfolio at net asset value without charge (up to five (5) exchanges per
account). There is a charge of $5 per exchange thereafter.
(4) Represents the advisory fee paid to Navellier Management, Inc. (See
"Expenses of the Fund-- Compensation of the Investment Advisor".)
(5) The American Tiger Top 20 Portfolio charges an initial sales load of 4.95%,
which sales load is reduced to 4.00% for purchases between $50,000 and
$99,999. The sales load is 3.50% for purchases between $100,000 and
$249,999. The sales load is 2.50% for purchases between $250,000 and
$499,999. The sales load is 2.00% for purchases between $500,000 and
$999,999. There is no sales load for Trustees of the Fund, the Distributor
or its employees, the Investment Advisor or its employees.
1
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EXAMPLES:
The following example indicates the direct and indirect expenses an investor
(who invests $1,000) could expect to incur in a single year and three-year
period for the applicable portfolio:
<TABLE>
<CAPTION>
THE
AMERICAN
TIGER
TOP 20
PORTFOLIO
-------------
<S> <C>
One-Year........................................................................... $ 64
Three-Year......................................................................... $ 95
Five-Year.......................................................................... *
Ten-Year........................................................................... *
</TABLE>
The foregoing examples assume (a) that an investor invested $1,000 in the
Portfolio; (b) a 4.95% sales load; (c) a 5% annual return; (d) percentage
amounts listed above for Annual Fund Operating Expenses remain constant (for all
periods shown above); (e) reinvestment of all dividends and distributions; and
(f) no exchanges between Portfolios.
THE EXAMPLES SHOWN ABOVE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST
OR FUTURE EXPENSES. ACTUAL EXPENSES OF EACH PORTFOLIO OF THE FUND MAY BE GREATER
OR LESS THAN THOSE SHOWN ABOVE.
* No estimates because the Portfolio had an operating history of less than 12
months.
2
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FINANCIAL HIGHLIGHTS
There is presently no financial history for The American Tiger Top 20
Portfolio since it is a newly organized portfolio with no operating history as
of September 30, 1998. The distribution of The American Tiger Top 20 Portfolio
shares commenced on October 2, 1998.
3
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SUMMARY
THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT THE FUND THAT A
PROSPECTIVE INVESTOR SHOULD KNOW BEFORE INVESTING AND SHOULD BE READ AND
RETAINED FOR FUTURE REFERENCE. THE CURRENT PORTFOLIO OF THE FUND IS DESIGNED FOR
LONG TERM INVESTORS AND NOT AS A TRADING VEHICLE AND IS NOT INTENDED TO PRESENT
A COMPLETE INVESTMENT PROGRAM FOR THE INVESTOR. AN INVESTMENT IN THE CURRENT
PORTFOLIO OF THE FUND INVOLVES CERTAIN SPECULATIVE CONSIDERATIONS; SEE "RISK
FACTORS". THE CURRENT PORTFOLIO EMPLOYS AN AGGRESSIVE INVESTMENT STRATEGY THAT
HAS THE POTENTIAL FOR YIELDING HIGH RETURNS. HOWEVER, SHARE PRICES OF THE
PORTFOLIO MAY ALSO EXPERIENCE SUBSTANTIAL FLUCTUATIONS INCLUDING DECLINES SO
THAT YOUR SHARES MAY BE WORTH LESS THAN WHEN YOU ORIGINALLY PURCHASED THEM.
(SEE INVESTMENT OBJECTIVES AND POLICIES PP. 6 FOR GREATER DETAIL.)
A STATEMENT OF ADDITIONAL INFORMATION ABOUT THE FUND HAS BEEN FILED WITH THE
SECURITIES AND EXCHANGE COMMISSION AND IS AVAILABLE UPON REQUEST AND WITHOUT
CHARGE BY CALLING OR WRITING THE AMERICAN TIGER FUNDS, C/O GSG SECURITIES, INC.,
980 NORTH FEDERAL HIGHWAY, SUITE 210, BOCA RATON, FL 33432; TELEPHONE:
800-723-3326. THE STATEMENT OF ADDITIONAL INFORMATION BEARS THE SAME DATE AS
THIS PROSPECTUS AND IS INCORPORATED BY REFERENCE INTO THIS PROSPECTUS IN ITS
ENTIRETY.
INVESTMENT ADVISOR
Navellier Management, Inc. (the "Investment Advisor") administers the assets
of the existing Portfolio of the Fund and has ultimate responsibility for
determining which securities will be selected as investments for the existing
Portfolio of the Fund. Louis Navellier, the President and CEO of the Investment
Advisor, refined the Modern Portfolio Theory investment strategy which is
applied in managing the assets of the current Portfolio. Louis Navellier sets
the strategies and guidelines for the current Portfolio and oversees the current
Portfolio Manager's activities. Louis Navellier and Alan Alpers are the
Portfolio Managers involved in the day-to-day investment activities of the
current Portfolio. Alan Alpers has been an analyst and portfolio manager for
Navellier & Associates, Inc. since 1989 and is responsible along with Mr.
Navellier for day-to-day management of over $1.5 billion in individual accounts
for Navellier & Associates, Inc. The Investment Advisor receives an annual
advisory fee, equal to 1.00% of the average daily net asset value of assets
under management for The American Tiger Top 20 Portfolio. The advisory fee for
the current Portfolio is payable monthly, based upon a percentage of that
Portfolio's average daily net assets.
DISTRIBUTION OF SHARES
GSG Securities, Inc. (the "Distributor") acts as the sole underwriter for
the shares of the current Portfolio of the Fund. The Distributor is a
corporation owned by JW Genesis Financial Corp. The Distributor may sell shares
of the current Portfolio of the Fund directly to investors or shares may be
purchased through a network of broker-dealers selected by the Distributor. The
Distributor will compensate these selected dealers for shareholder services by
paying them directly, or by allowing them to receive annually all or a portion
of the 0.25% annual 12b-1 fee paid on the current Portfolio
HOW TO INVEST
Shares of the current Portfolio of the Fund are continuously offered for
sale by the Distributor and through selected broker-dealers. The daily purchase
price for the current Portfolio is the net asset value next computed after
receipt of your order. Initial purchases must be at least $2,000 ($500 in the
case of IRA and other retirement plans or qualifying group plans) and subsequent
investments must be $100 or more.
4
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RISK FACTORS
Investment in the Portfolio involves special risks and there can be no
guarantee of profitability. Some of those risks are briefly described here.
Because The American Tiger Top 20 Portfolio is allowed to invest up to 10% of
the Portfolio's assets in any single company and/or up to 25% in the companies
of any single industry, there is potentially a greater risk of loss or
fluctuation in value of this portfolio.
Some of the small cap securities which the current Portfolio may purchase
may be difficult to liquidate on short notice or, on occasion, only a portion of
the shares of a company in which the Investment Advisor intends to trade may be
available to be bought or sold by the current Portfolio. There can be no
assurance of profitability or of what the Portfolio's total annual operating
expenses will be. Investments, if any, in securities of foreign issuers may pose
greater risks. The Investment Advisor's investment style could result in above
average portfolio turnover which could result in higher brokerage expenses. As
with any equity fund, the investments may decline, resulting in a loss of value
to the shareholder. (For more detail, see "Risk Factors".)
5
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INVESTMENT OBJECTIVES AND POLICIES
INVESTMENT OBJECTIVE OF THE AMERICAN TIGER TOP 20 PORTFOLIO
THE INVESTMENT OBJECTIVE OF THE AMERICAN TIGER TOP 20 PORTFOLIO IS TO
ACHIEVE LONG TERM GROWTH OF CAPITAL PRIMARILY THROUGH INVESTMENTS IN STOCKS OF
COMPANIES WITH APPRECIATION POTENTIAL.
The American Tiger Top 20 Portfolio is a non-diversified Portfolio, which
means it may invest a larger than normal percentage of its total assets in the
equity (including convertible debt) securities of any one company or companies
which the Investment Advisor believes represents an opportunity for significant
capital appreciation. The Investment Advisor can invest up to 10% of the
Portfolio's assets in the securities of any single company or up to 25% of its
assets in securities issued by companies in any one industry. Since the
Investment Advisor can invest more of the Portfolio's assets in the stock of a
single company, this Portfolio should be considered to offer greater potential
for capital appreciation as well as greater risk of loss due to the potential
increased investment of assets in a single company. This Portfolio, because of
its non-diversification, also poses a greater potential for volatility. This
Portfolio should not be considered suitable for investors seeking current
income. This Portfolio may invest its assets in the securities of a broad range
of companies without restriction on their capitalization. Under normal
circumstances, The American Tiger Top 20 Portfolio will invest at least 65% of
its total assets in securities of companies. However, that projected minimum
percentage could be lowered during adverse market conditions or for defensive
purposes and is not a fundamental policy of the Portfolio. Securities of issuers
include, but are not limited to, common and preferred stock, and convertible
preferred stocks that are convertible into common stock. While this Portfolio
intends to operate as a non-diversified open end management investment company
for the purposes of the 1940 Act, it also intends to qualify as a regulated
investment company under the Internal Revenue Code ("Code"). As a
non-diversified investment company under the 1940 Act, the Fund may invest more
than 5% and up to 10% of its assets in the securities of any one issuer at the
time of purchase. However, for purposes of the Internal Revenue Code, as of the
last day of any fiscal quarter, this Portfolio may not have more than 25% of its
total assets invested in any one issuer, and, with respect to 50% of its total
assets, the Portfolio may not have more than 5% of its total assets invested in
any one issuer, nor may it own more than 10% of the outstanding voting
securities of any one issuer. These limitations do not apply to investments in
securities issued or guaranteed by the U.S. Government or its agencies or
instrumentalities or the securities of investment companies that qualify as
regulated investment companies under the Code.
Investors in The American Tiger Top 20 Portfolio pay an initial sales charge
(load) and pay an annual 0.25% fee ("12b-1 fee").
OTHER INVESTMENTS
The American Tiger Top 20 Portfolio may, for temporary defensive purposes or
to maintain cash or cash equivalents to meet anticipated redemptions, also
invest in debt securities and money market funds if, in the opinion of the
Investment Advisor, such investment will further the cash needs or temporary
defensive needs of the Portfolio. In addition, when the Investment Advisor feels
that market or other conditions warrant it, for temporary defensive purposes,
the current Portfolio may retain cash or invest all or any portion of its assets
in cash equivalents, including money market mutual funds. Under normal
conditions, The American Tiger Top 20 Portfolio's holdings in such non-equity
securities should not exceed 35% of the total assets of the Portfolio. If the
current Portfolio's assets, or a portion thereof, are retained in cash or money
market funds or money market mutual funds, such cash will, in all probability,
be deposited in interest-bearing or money market accounts or Rushmore's money
market mutual funds. Rushmore Trust & Savings, FSB is also the Fund's Transfer
Agent and Custodian. Cash deposits by the Fund in interest bearing instruments
issued by Rushmore Trust & Savings ("Transfer Agent") will only be deposited
with the Transfer Agent if its interest rates, terms, and security are equal to
or better than could
6
<PAGE>
be received by depositing such cash with another savings institution. Money
market investments have no FDIC protection and deposits in Rushmore Trust &
Savings accounts have only $100,000 protection.
It is anticipated that, for the current Portfolio, all of its investments in
corporate debt securities (other than commercial paper) and preferred stocks
will be represented by debt securities and preferred stocks which have, at the
time of purchase, a rating within the four highest grades as determined by
Moody's Investors Service, Inc. (Aaa, Aa, A, Baa) or by Standard & Poor's
Corporation (AAA, AA, A, BBB; securities which are rated BBB/Baa have
speculative characteristics). Although investment-quality securities are subject
to market fluctuations, the risk of loss of income and principal is generally
expected to be less than with lower quality securities. In the event the rating
of a debt security or preferred stock in which the Portfolio has invested drops
below investment grade, the Portfolio will promptly dispose of such investment.
When interest rates go up, the market value of debt securities generally goes
down and long-term debt securities tend to be more volatile than short term debt
securities.
In determining the types of companies which will be suitable for investment
by The American Tiger Top 20 Portfolio, the Investment Advisor will screen over
9,000 stocks and will take into account various factors and base its stock
selection on its own model portfolio theory concepts to select from the twenty
stocks which have the highest ranking based on the Investment Advisor's
analysis. The current Portfolio invests primarily in what the Investment Advisor
believes are undervalued common stocks believed to have long-term appreciation
potential. Stocks are selected on the basis of an evaluation of factors such as
earnings growth, expanding profit margins, market dominance and/or factors that
create the potential for market dominance, sales growth, and other factors that
indicate a company's potential for growth or increased value. There are no
limitations on The American Tiger Top 20 Portfolio as to the type, operating
history, or dividend paying record of companies or industries in which this
Portfolio may invest; the principal criteria for investment is that the
securities provide opportunities for capital growth and that they rank in the
Investment Advisor's Top 20 highest rated investment opportunities at the time
the Investment Advisor makes its analysis, which analysis shall be made at least
monthly. The Portfolio will invest up to 100% of its capital in equity
securities selected for their growth or value potential. The Investment Advisor
will typically (but not always) purchase common stocks of issuers which have
records of profitability and strong earnings momentum. When selecting such
stocks for investment by the current Portfolio, the issuers may be lesser known
companies moving from a lower to a higher market share position within their
industry groups rather than the largest and best known companies in such groups.
The Investment Advisor, when investing for The American Tiger Top 20 Portfolio,
may also purchase common stocks of well known, highly researched, large
companies if the Investment Advisor believes such common stocks offer
opportunity for long-term capital appreciation.
7
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SPECIAL INVESTMENT METHODS AND RISKS
REPURCHASE AGREEMENTS
The Fund may enter into repurchase agreements, by which the Fund purchases a
security and obtains a simultaneous commitment from the seller (a bank or, to
the extent permitted by the Investment Company Act of 1940, as amended (the
"1940 Act"), a recognized securities dealer) to repurchase the security at an
agreed-upon price and date (usually seven days or less from the date of original
purchase). The resale price is in excess of the purchase price and reflects an
agreed-upon market rate unrelated to the coupon rate on the purchased security.
Such transactions afford the Fund the opportunity to earn a return on
temporarily available cash. Although the underlying security may be a bill,
certificate of indebtedness, note or bond issued by an agency, authority or
instrumentality of the U.S. Government, the obligation of the seller is not
guaranteed by the U.S. Government and there is a risk that the seller may fail
to repurchase the underlying security. In such event, the Fund would attempt to
exercise rights with respect to the underlying security, including possible
disposition in the market. However, the Fund may be subject to various delays
and risks of loss, including (a) possible declines in the value of the
underlying security during the period while the Fund seeks to enforce its rights
thereto and (b) inability to enforce rights and the expenses involved in
attempted enforcement.
LOANS OF PORTFOLIO SECURITIES
The Fund may lend some or all of its portfolio securities to broker-dealers.
Securities loans are made to broker-dealers pursuant to agreements requiring
that loans be continuously secured by collateral in cash or U.S. Government
securities at least equal at all times to the market value of the securities
lent. The borrower pays to the Fund an amount equal to any dividends or interest
received on the securities lent. When the collateral is cash, the Fund may
invest the cash collateral in interest-bearing, short-term securities. When the
collateral is U.S. Government securities, the Fund usually receives a fee from
the borrower. Although voting rights or rights to consent with respect to the
loaned securities passed to the borrower, the Fund retains the right to call the
loans at any time on reasonable notice, and it will do so in order that that
securities may be voted by the Fund if the holders of such securities are asked
to vote upon or consent to matters materially affecting the investment. The Fund
may also call such loans in order to sell the securities involved. The risks in
lending portfolio securities, as with other extensions of credit, include
possible delay in recovery of the securities or possible loss of rights in the
collateral should the borrower fail financially. However, such loans will be
made only to broker-dealers that are believed by the Investment Advisor to be of
relatively high credit standing.
8
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INVESTMENT RESTRICTIONS
The American Tiger Top 20 Portfolio can invest up to 10% of its assets in
securities of a single issuer and can invest up to 25% of its assets in
securities of companies in a single industry. The American Tiger Top 20
Portfolio may not make investments in real estate or commodities or commodity
contracts, including futures contracts, but may purchase securities of issuers
which deal in real estate or commodities. The American Tiger Top 20 Portfolio is
prohibited from investing in or selling puts, calls, straddles (or any
combination thereof). The American Tiger Top 20 Portfolio is prohibited from
investing in derivatives. The American Tiger Top 20 Portfolio may borrow money
only from banks for temporary or emergency (not leveraging) purposes provided
that, after each borrowing, there is an asset coverage in the borrowing
Portfolio of at least 300%. The American Tiger Top 20 Portfolio will not
purchase securities if the amount of borrowing by such Portfolio exceeds 5% of
total assets of such Portfolio. In order to secure any such borrowing, the
borrowing Portfolio may pledge, mortgage, or hypothecate up to 10% of the market
value of the assets of the Portfolio. The investment by The American Tiger Top
20 Portfolio in securities, including American Depository Receipts, of issuers
or any governmental entity or political subdivision thereof, located,
incorporated or organized outside of the United States is limited to 25% of the
net asset value of the Portfolio, provided that no such foreign securities may
be purchased unless they are traded on United States securities markets.
The Fund may not purchase for The American Tiger Top 20 Portfolio
"restricted securities" (as defined in Rule 144(a)(3) of the Securities Act of
1933) if, as a result of such purchase, more than 10% of the net assets (taken
at market value) of such Portfolio would be invested in such securities nor will
the Fund invest in illiquid or unseasoned securities if as a result of such
purchase more than 5% of the net assets of such portfolio would be invested in
either illiquid or unseasoned securities. The Board of Trustees will determine
whether these securities are liquid and will monitor liquidity on an ongoing
basis.
In addition to the investment restrictions described above, the investment
program of each Portfolio is subject to further restrictions which are described
in the Statement of Additional Information. The restrictions for each Portfolio
are fundamental and may not be changed without shareholder approval.
9
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RISK FACTORS
LACK OF OPERATING HISTORY
The American Tiger Top 20 Portfolio is a newly organized investment company
portfolio which went effective September 30, 1998. The Investment Advisor was
organized on May 28, 1993. Although the Investment Advisor sub-contracts a
substantial portion of its responsibilities for administrative services of the
Fund's operations to various agents, including the Transfer Agent and the
Custodian, the Investment Advisor still has overall responsibility for the
administration of each of the Portfolios and oversees the administrative
services performed by others as well as servicing customer's needs and, along
with each Portfolio's Trustees, is responsible for the selection of such agents
and their oversight. The Investment Advisor also has overall responsibility for
the selection of securities for investment for The American Tiger Top 20
Portfolio. The owner of the Investment Advisor has been in the business of
rendering advisory services to significant pools of capital such as retirement
plans and large investors since 1987.
The owner of the Investment Advisor is also the owner of another investment
advisory firm, Navellier & Associates Inc., which presently manages over $1.5
billion in investor funds. The owner of the Investment Advisor is also the owner
of another investment advisory firm, Navellier Fund Management, Inc., and
controls other investment advisory entities which manage assets and/or act as
sub-advisors, all of which firms employ the same basic modern portfolio theories
and select many of the same over-the-counter stocks and other securities which
the Investment Advisor intends to employ and invest in while managing the
Portfolios of the Fund. Because many of the over-the-counter and other
securities in which the Investment Advisor intends to, or may invest, have a
smaller number of shares available to trade than larger capitalized companies,
lack of shares available at any given time may result in The American Tiger Top
20 Portfolio of the Fund not being able to purchase or sell all shares which
Investment Advisor desires to trade at a given time or period of time, thereby
creating a potential liquidity problem which could adversely affect the
performance of The American Tiger Top 20 Portfolio. Since the Investment Advisor
will be trading on behalf of the Portfolio of the Fund in some or all of the
same securities at the same time that Navellier & Associates Inc., Navellier
Fund Management, Inc., other Navellier controlled investment entities are
trading, the potential liquidity problem could be exacerbated. In the event the
number of shares available for purchase or sale in a security or securities is
limited and therefore the trade order cannot be fully executed at the time it is
placed, i.e., where the full trade orders of Navellier & Associates Inc.,
Navellier Fund Management, Inc., and other Navellier controlled investment
entities and the Fund cannot be completed at the time the order is made,
Navellier & Associates, Inc., and the other Navellier controlled investment
entities and the Investment Advisor will allocate their purchase or sale orders
in proportion to the dollar value of the order made by the other Navellier
entities, and the dollar value of the order made by the Fund. For example, if
Navellier & Associates Inc., and Navellier Fund Management, Inc., each place a
$25,000 purchase order and Investment Advisor on behalf of the Fund places a
$50,000 purchase order for the same stock and only $50,000 worth of stock is
available for purchase, the order would be allocated $12,500 each of the stock
to Navellier & Associates Inc., and Navellier Fund Management, Inc., and $25,000
of the stock to the Fund. As the assets of each Portfolio of the Fund increase
the potential for shortages of buyers or sellers increases, which could
adversely affect the performance of the various Portfolios. While the Investment
Advisor generally does not anticipate liquidity problems (i.e., the possibility
that the Portfolio cannot sell shares of a company and therefore the value of
those shares drops) unless the Fund has assets in excess of two billion dollars
(although liquidity problems could still occur when the Fund has assets of
substantially less than two billion dollars), each investor is being made aware
of this potential risk in liquidity and should not invest in the Fund if he,
she, or it is not willing to accept this potentially adverse risk, and by
investing, acknowledges that he, she or it is aware of the risks.
An investment in shares of The American Tiger Top 20 Portfolio of the Fund
involves certain speculative considerations. There can be no assurance that The
American Tiger Top 20 Portfolio's objectives will be achieved or that the value
of the investment will increase. An investment in shares of The
10
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American Tiger Top 20 Portfolio may also involve a higher degree of risk than an
investment in shares of a more traditional open-end diversified investment
company because The American Tiger Top 20 Portfolio may invest up to 10% of its
assets in the securities of any single issuer and up to 25% of its assets in the
securities of any single industry, thereby potentially creating greater
volatility or increasing the chance of losses. As a non-diversified investment
Portfolio, The American Tiger Top 20 Portfolio may be subject to greater
fluctuation in the total market value of such Portfolio, and economic, political
or regulatory developments may have a greater impact on the value of this
Portfolio than would be the case if this Portfolio were diversified among a
greater number of issuers. The American Tiger Top 20 Portfolio intends to comply
with the diversification and other requirements applicable to regulated
investment companies under the Internal Revenue Code.
All securities in which the Fund's Portfolio may invest are inherently
subject to market risk, and the market value of the Fund's investments will
fluctuate. From time to time the Fund may choose to close a portfolio or
portfolios to new investors.
INVESTING IN SECURITIES OF FOREIGN ISSUERS
Investments in foreign securities (those which are traded principally in
markets outside of the United States), particularly those of non-governmental
issuers, involve considerations which are not ordinarily associated with
investing in domestic issuers. These considerations include, among others,
changes in currency rates, currency exchange control regulations, the
possibility of expropriation, the unavailability of financial information, the
difficulty of interpreting financial information prepared under laws applicable
to foreign securities markets, the impact of political, social, or diplomatic
developments, difficulties in invoking legal process abroad, and the difficulty
of assessing economic trends in foreign countries. Furthermore, issuers of
foreign securities are subject to different, and often less comprehensive,
accounting, reporting and disclosure requirements than domestic issuers. The
laws of some foreign countries may limit a Fund's ability to invest in
securities of certain issuers located in those countries. The securities of some
foreign issuers and securities traded principally in foreign securities markets
are less liquid and at times more volatile than securities of comparable U.S.
issuers and securities traded principally in U.S. securities markets. Foreign
brokerage commissions and other fees are also generally higher than those
charged in the United States. There are also special tax considerations which
apply to securities of foreign issuers and securities traded principally in
foreign securities markets.
The risks of investing in foreign securities may be intensified in the case
of investments in emerging markets or countries with limited or developing
capital markets. Prices of securities of companies in emerging markets can be
significantly more volatile than prices of securities of companies in the more
developed nations of the world, reflecting the greater uncertainties of
investing in less developed markets and economies. In particular, countries with
emerging markets may have relatively unstable governments, present the risk of
nationalization of businesses, restrictions on foreign ownership, or
prohibitions of repatriation of assets, and may have less protection of property
rights than more developed countries. The economies of countries with emerging
markets may be predominantly based on only a few industries or dependent on
revenues from particular commodities or on international aid or development
assistance, may be highly vulnerable to changes in local or global trade
conditions, and may suffer from extreme and volatile debt burdens or inflation
rates. Local securities markets may trade a small number of securities and may
be unable to respond effectively to increases in trading volume, potentially
making prompt liquidation of substantial holdings difficult or impossible at
times. Consequently, securities of issuers located in countries with emerging
markets may have limited marketability and may be subject to more abrupt or
erratic price movements. Also, such local markets typically offer less
regulatory protections for investors.
While to some extent the risks to the Fund of investing in foreign
securities may be limited, since The American Tiger Top 20 Portfolio may not
invest more than 25% of its net asset value in such securities and
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such Portfolio of the Fund may only invest in foreign securities which are
traded in the United States securities markets, the risks nonetheless exist.
The Investment Advisor will use the same basic selection criteria for
investing in foreign securities as it uses in selecting domestic securities as
described in the Investment Objectives and Policies section of this Prospectus.
NET ASSET VALUE
The net asset value of The American Tiger Top 20 Portfolio is determined by
adding the values of all securities and other assets of that specific Portfolio,
subtracting liabilities, and dividing by the number of outstanding shares of
that Portfolio. (See "Purchase and Pricing of Shares--Valuation of Shares" and
the Statement of Additional Information.)
PORTFOLIO TURNOVER
The Portfolio turnover rate for The American Tiger Top 20 Portfolio is
unknown since this is a newly organized Portfolio which only began operations on
September 30, 1998. The Investment Advisor estimates that the portfolio turnover
rate for The American Tiger Top 20 Portfolio will not exceed 300% per annum.
However, this is not a restriction on the Investment Advisor and if in the
Investment Advisor's judgment a higher annual portfolio turnover rate is
required in order to attempt to achieve a higher overall Portfolio performance,
then the Investment Advisor is permitted to do so. However, high portfolio
turnover (100% or more) will result in increased brokerage commissions, dealer
mark-ups, and other transaction costs on the sale of securities and on
reinvestment in other securities and could therefore adversely affect Portfolio
performance. To the extent that increased portfolio turnover results in sales at
a profit of securities held less than three months, the Fund's ability to
qualify as a "regulated investment company" under the Internal Revenue Code may
be affected. (See the Statement of Additional Information, "Taxes".)
SPECIAL RISK CONSIDERATIONS RELATING TO SECURITIES OF THE PORTFOLIO
For a description of certain other factors, including certain risk factors,
which investors should consider relating to the securities in which the
Portfolio will invest, see "Risk Factors".
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PERFORMANCE
From time to time the Fund may include the performance history of any
Portfolio (and if appropriate, the performance history of the Investment Advisor
and/or the Portfolio Manager in managing comparable asset accounts) in
advertisements, sales literature, or reports to prospective shareholders.
The "total return" of each Portfolio refers to the average annual compounded
rate of return of the Portfolio over some representative period that would
equate an initial payment of $1,000 at the beginning of a stated period to the
ending redeemable value of the investment, after giving effect to the
reinvestment of all dividends and distributions and deductions of expenses
during the period.
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MANAGEMENT OF THE FUND
THE BOARD OF TRUSTEES
The Fund's Board of Trustees directs the business and affairs of the current
Portfolio of the Fund and supervises the Investment Advisor, Distributor,
Transfer Agent and Custodian, as described below.
THE INVESTMENT ADVISOR
Navellier Management, Inc. acts as the Investment Advisor to the only
current Portfolio of the Fund. The Investment Advisor is registered as an
investment adviser under the Investment Advisors Act of 1940. The Investment
Advisor is responsible for selecting the securities which will constitute the
pool of securities which will be selected for investment for The American Tiger
Top 20 Portfolio. Pursuant to a separate Administrative Services Agreement, the
Investment Advisor provides The American Tiger Top 20 Portfolio with certain
administrative services, including accounting and bookkeeping services and
supervising the Custodian's and Transfer Agent's activities and The American
Tiger Top 20 Portfolio's compliance with its reporting obligations. The
Investment Advisor may sub-contract for the performance of such services by the
Custodian, Transfer Agent, or others and payment for such sub-contracted
services should be paid by the Investment Advisor out of its fees under the
Administrative Services Agreement. The Investment Advisor also provides each
Portfolio of the Fund with a continuous investment program based on its
investment research and management with respect to all securities and
investments. The Investment Advisor will determine from time to time what
securities and other investments will be selected to be purchased, retained, or
sold by The American Tiger Top 20 Portfolio of the Fund.
The Investment Advisor is owned and controlled by its sole shareholder,
Louis G. Navellier (a 100% stockholder). Louis Navellier is, and has been, in
the business of rendering investment advisory services to significant pools of
capital since 1987.
For information regarding the Fund's expenses and the fees paid to the
Investment Advisor see "Expenses of the Fund".
CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES
On September 3, 1998, in order to fulfill the requirements of Section
14(a)(1) of the Investment Company Act of 1940, one hundred percent (100%) of
the issued and outstanding shares of the only existing Portfolio of the Fund
(The American Tiger Top 20 Portfolio) was subscribed to for purchase by Louis
Navellier under an agreement dated September 3, 1998. Such subscription was made
for an aggregate of $100,000 allocated 100% for the Portfolio (to purchase
10,000 shares).
THE DISTRIBUTOR
GSG Securities, Inc. acts as the Fund's Distributor and is registered as a
broker-dealer under the Securities Exchange Act of 1934 and is a member of the
National Association of Securities Dealers ("NASD"). The Distributor renders its
services to the Fund pursuant to a distribution agreement under which it serves
as the principal underwriter of the shares of each existing Portfolio of the
Fund. The Distributor may sell certain of the Fund's Portfolio shares by direct
placements. Through a network established by the Distributor, each of the Fund's
Portfolio shares may also be sold through selected broker-dealers. (For
information regarding the Fund's expenses and the fees it pays to the
Distributor, see "Expenses of the Fund" following.)
THE CUSTODIAN AND THE TRANSFER AGENT
Rushmore Trust & Savings, FSB, 4922 Fairmont Avenue, Bethesda, Maryland,
20814, telephone: (301) 657-1510 or (800) 622-1386, is Custodian for the Fund's
securities and cash and Transfer Agent for the Fund shares. The Distributor
shall be responsible for the review of applications in order to guarantee that
all requisite and statistical information has been provided with respect to the
establishment of accounts.
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EXPENSES OF THE FUND
GENERAL
The American Tiger Top 20 Portfolio is responsible for the payment of its
own expenses. These expenses are deducted from the Portfolio's investment income
before dividends are paid. These expenses include, but are not limited to: fees
paid to the Investment Advisor, the Custodian and the Transfer Agent; Trustees'
fees; taxes; interest; brokerage commissions; organization expenses; securities
registration ("blue sky") fees; legal fees; auditing fees; printing and other
expenses which are not directly assumed by the Investment Advisor under its
investment advisory or expense reimbursement agreements with the Fund. General
expenses which are not associated directly with a specific Portfolio (including
fidelity bond and other insurance) are allocated to each Portfolio based upon
their relative net assets. The Investment Advisor may, but is not obligated to,
from time to time advance funds, or directly pay, for expenses of the Fund and
may seek reimbursement of or waive reimbursement of those advanced expenses.
COMPENSATION OF THE INVESTMENT ADVISOR
The Investment Advisor receives an annual 1.00% fee for investment
management of The American Tiger Top 20 Portfolio The fee is payable monthly,
based upon the Portfolio's average daily net assets. The Investment Advisor is
entitled to reimbursement for operating expenses it advances for the Fund.
DISTRIBUTION PLAN
THE DISTRIBUTION PLAN FOR THE AMERICAN TIGER TOP 20 PORTFOLIO
The American Tiger Top 20 Portfolio has adopted a Plan pursuant to Rule
12b-1 under the 1940 Act (the "Plan"), whereby such Portfolio compensates
Distributor or others in the amount of 0.25% per annum of the average daily net
assets of such Portfolio for expenses incurred and services rendered for the
promotion and distribution of the shares such Portfolio of the Fund, including,
but not limited to, the printing of prospectuses, statements of additional
information and reports used for sales purposes, expenses (including personnel
of Distributor) of preparation of sales literature and related expenses,
advertisements and other distribution-related expenses, including a prorated
portion of Distributor's overhead expenses attributable to the distribution of
such particular portfolio's shares. Such payments are made monthly. The 12b-1
fee includes, in addition to promotional activities, amounts such Portfolio pays
to Distributor or others as a service fee to compensate such parties for
personal services provided to shareholders of such Portfolio and/or the
maintenance of shareholder accounts. The total amount of 12b-1 fees paid for
such personal services and promotional services for such portfolio shall be
0.25% per year of the average daily net assets of such Portfolio. The
Distributor can keep all of said 12b-1 fees it receives to the extent it is not
required to pay others for such services. Such Rule 12b-1 fees are made pursuant
to the distribution plan and distribution agreements entered into between such
service providers and Distributor or such Portfolio directly. The 12b-1 Plan for
such Portfolio also covers payments by the Distributor and Investment Advisor to
the extent such payments are deemed to be for the financing of any activity
primarily intended to result in the sale of shares issued by such Portfolio
within the context of Rule 12b-1. The payments under the 12b-1 Plan for such
Portfolio are included in the maximum operating expenses which may be borne by
such Portfolio. Payments under the 12b-1 Plan for such Portfolio may exceed
actual expenses incurred by the Distributor, Investment Advisor or others.
BROKERAGE COMMISSIONS
The Investment Advisor may select selected broker-dealers to execute
portfolio transactions for the current Portfolio of the Fund, provided that the
commissions, fees, or other remuneration received by such party in exchange for
executing such transactions are reasonable and fair compared to those paid to
other brokers in connection with comparable transactions. In addition, when
selecting broker-dealers for Fund portfolio transactions, the Investment Advisor
may consider the record of such broker-dealers with respect to the sale of
shares of the Fund. (See the Statement of Additional Information.)
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REPORTS AND INFORMATION
The Fund will distribute to the shareholders of the current Portfolio
semi-annual reports containing unaudited financial statements and information
pertaining to matters of such Portfolio of the Fund. An annual report containing
financial statements for such Portfolio, together with the report of the
independent auditors for such Portfolio of the Fund is distributed to
shareholders each year. Shareholder inquiries should be addressed to The
American Tiger Funds at GSG Securities, Inc., 980 North Federal Highway, Suite
210, Boca Raton, FL 33432; 800-723-3326 or to the Transfer Agent, Rushmore Trust
& Savings, FSB, 4922 Fairmont Avenue, Bethesda, Maryland, 20814, Telephone:
(301) 657-1510 or (800) 622-1386.
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DESCRIPTION OF SHARES
The Fund is a Delaware business trust organized on September 4, 1998. The
Declaration of Trust permits the Trustees to issue an unlimited number of shares
of beneficial interest. The Board of Trustees has the power to designate one or
more classes ("Portfolios") of shares of beneficial interest and to classify or
reclassify any unissued shares with respect to such classes. Presently the Fund
is offering shares of one Portfolio--The American Tiger Top 20 Portfolio, which
is described above.
The shares of The American Tiger Top 20 Portfolio, when issued, are fully
paid and non-assessable, are redeemable at the option of the holder, are fully
transferable, and have no conversion or preemptive rights. Shares are also
redeemable at the option of such Portfolio of the Fund when a shareholder's
investment, as a result of redemptions in the Fund, falls below the minimum
investment required by the Fund (see "Redemption of Shares"). Each share of the
Portfolio is equal as to earnings, expenses, and assets of the Portfolio and, in
the event of liquidation of the Portfolio, is entitled to an equal portion of
all of the Portfolio's net assets. Shareholders of such Portfolio of the Fund
are entitled to one vote for each full share held and fractional votes for
fractional shares held, and will vote in the aggregate and not by Portfolio
except as other-wise required by law or when the Board of Trustees determines
that a matter to be voted upon affects only the interest of the shareholders of
a particular Portfolio. Voting rights are not cumulative, so that the holders of
more than 50% of the shares voting in any election of Trustees can, if they so
choose, elect all of the Trustees. While the Fund is not required, and does not
intend, to hold annual meetings of shareholders, such meetings may be called by
the Trustees at their discretion, or upon demand by the holders of 10% or more
of the outstanding shares of such Portfolio for the purpose of electing or
removing Trustees.
All shares (including reinvested dividends and capital gain distributions)
are issued or redeemed in full or fractional shares rounded to the second
decimal place. No share certificates will be issued. Instead, an account will be
established for each shareholder and all shares purchased will be held in
book-entry form by the Fund.
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DIVIDENDS AND DISTRIBUTIONS
All dividends and distributions with respect to the shares of The American
Tiger Top 20 Portfolio will be payable in shares at net asset value or, at the
option of the shareholder, in cash. Any shareholder who purchases shares of the
Portfolio prior to the close of business on the record date for a dividend or
distribution will be entitled to receive such dividend or distribution.
Dividends and distributions (whether received in shares or in cash) are treated
either as return of capital, ordinary income or long-term capital gain for
federal income tax purposes. Between the record date and the cash payment date,
such Portfolio retains the use and benefits of such monies as would be paid as
cash dividends.
The American Tiger Top 20 Portfolio will distribute all of its net
investment income and net realized capital gains, if any, annually in December.
If a cash payment is requested with respect to the Portfolio, a check will
be mailed to the shareholder. Unless otherwise instructed, the Transfer Agent
will mail checks or confirmations to the shareholder's address of record.
The federal income tax laws impose a four percent (4%) nondeductible excise
tax on each regulated investment company with respect to the amount, if any, by
which such company does not meet distribution requirements specified in the
federal income tax laws. The American Tiger Top 20 Portfolio intends to comply
with the distribution requirements and thus does not expect to incur the four
percent (4%) nondeductible excise tax, although the imposition of such excise
tax may possibly occur.
Shareholders will have their dividends and/or capital gain distributions
reinvested in additional shares of The American Tiger Top 20 Portfolio unless
they elect in writing to receive such distributions in cash. Shareholders whose
shares are held in the name of a broker or nominee should contact such broker or
nominee to determine whether they want dividends reinvested or distributed.
The automatic reinvestment of dividends and distributions will not relieve
participants of any income taxes that may be payable (or required to be
withheld) on dividends and distributions. (See "Taxes" following.)
In the case of foreign participants whose dividends are subject to U.S.
income tax withholding and in the case of any participants subject to 31%
federal backup withholding, the Transfer Agent will reinvest dividends after
deduction of the amount required to be withheld.
Experience may indicate that changes in the automatic reinvestment of
dividends are desirable. Accordingly, the Fund reserves the right to amend or
terminate this provision as applied to any dividend or distribution paid
subsequent to written notice of the change sent to shareholders at least 90 days
before the record date for such dividend or distribution.
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TAXES
FEDERAL TAXES
Each Portfolio of the Fund is a separate taxpayer and intends to meet the
requirements of Subchapter M of the Internal Revenue Code of 1986 (relating to
regulated investment companies) with respect to diversification of assets,
sources of income, and distributions of taxable income and will elect to be
taxed as a regulated investment company for federal income tax purposes.
Because each Portfolio of the Fund intends to distribute all of its net
investment income and net realized capital gains at least annually, it is not
expected that any Portfolio of the Fund will be required to pay federal income
tax for any year throughout which it was a regulated investment company nor, for
this reason, is it expected that any Portfolio will be required to pay the 4%
federal excise tax imposed on regulated investment companies that fail to
satisfy certain minimum distribution requirements. However, the possibility of
federal or state income tax and/or imposition of the federal excise tax does
exist.
If a Portfolio pays a dividend in January of any year which was declared in
the last three months of the previous year and was payable to shareholders of
record on a specified date in such a month, the dividend will be treated as
having been paid and received in the previous year.
Dividends (other than capital gains dividends) will be taxable to
shareholders as ordinary income, whether received in shares or cash and will, in
the case of corporate shareholders, generally qualify for the dividends-received
deduction to the extent paid out of qualifying dividends received by the
Portfolio.
Capital gains dividends will ordinarily be taxable to shareholders as
long-term capital gain, regardless of how long they have held their shares. A
dividend is a capital gains dividend if it is so designated by the Portfolio and
is paid out of the Portfolio 's net capital gain (that is, the excess of the
Portfolio's net long-term capital gain over its net short-term capital loss).
Any dividends paid shortly after a purchase by an investor may have the
effect of reducing the per share net asset value of the investor's shares by the
per share amount of dividends. Furthermore, such dividends, although in effect a
return of capital, are subject to federal income taxes. Therefore, prior to
purchasing shares of the Fund, the investor should carefully consider the impact
of dividends, including capital gains distributions, which are expected to be or
have been announced.
If the Fund redeems some or all of the shares held by any shareholder, the
transaction will generally be treated as a sale or exchange unless the
redemption fails to substantially reduce the shareholder's percentage ownership
interest in the Fund (determined for this purpose using certain specific rules
of constructive ownership). If a redemption of shares is not treated as a sale
or exchange, the amount paid for the shares will be treated as a dividend.
If a redemption is treated as a sale or exchange, the shareholder will
generally recognize gain or loss measured by the difference between the
redemption price and the basis of the shares. This gain or loss will generally
be treated as capital gain (long-term or short-term, depending upon the holding
period for the redeemed shares).
Shareholders will be subject to information reporting with respect to
dividends and redemptions, and may be subject to backup withholding with respect
to dividends at the rate of 31% unless (a) they are corporations or come within
other exempt categories or (b) they provide correct taxpayer identification
numbers, certify as to no loss of exemption from backup withholding, and
otherwise comply with applicable requirements of the law relating to backup
withholding. Any amounts paid as backup withholding will be creditable against
the federal income tax liabilities of the affected shareholders.
The Fund may pay taxes to foreign countries with respect to dividends or
interest it receives from foreign issuers or from domestic issuers that derive a
substantial amount of their revenues in foreign
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countries, or such taxes may be withheld at the source by such issuers. The Fund
will generally be entitled to deduct such taxes in computing its taxable income.
STATE AND LOCAL TAXES
Each Portfolio of the Fund may be subject to state or local taxation in
jurisdictions in which it may be deemed to be doing business. Taxable income of
each Portfolio of the Fund and its shareholders for state and local purposes may
be different from taxable income calculated for federal income tax purposes.
The foregoing is a general summary of possible federal, state and foreign
tax consequences of investing in The American Tiger Funds to shareholders who
are U.S. citizens or U.S. corporations. Each prospective investor is advised to
consult his or her tax adviser for advice as to the federal, state, local and
foreign taxation which may be applicable to such investor in connection with an
investment in the Fund.
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PURCHASE AND PRICING OF SHARES
PURCHASE OF SHARES
The Fund's portfolio shares are sold to the general public on a continuous
basis through the Distributor, the Transfer Agent and the Distributor's network
of broker-dealers.
PURCHASE BY MAIL
Investments in the Fund can be made directly to the Distributor or through
the transfer agent-- Rushmore Trust & Savings, FSB--or through selected
securities dealers who have the responsibility to transmit orders promptly and
who may charge a processing fee.
TO INVEST BY MAIL: Fill out an application designating which Portfolio you
are investing in and make a check payable to "The American Tiger Funds." Mail
the check along with the application to:
The American Tiger Funds
c/o Rushmore Trust & Savings, FSB
4922 Fairmont Avenue
Bethesda, MD 20814
Purchases by check will be credited to an account as of the date the
Portfolio's net asset value is next determined after receipt of payment and a
properly completed account application. Foreign checks will not be accepted. Be
certain to specify which Portfolio or Portfolios you are investing in.
Purchase orders which do not specify the Portfolio in which an investment is
to be made will be returned. (See "Purchase and Pricing of Shares--General
Purchasing Information".) Net asset value per share is calculated once daily as
of 4 p.m. E.S.T. on each business day. (See "Purchase and Pricing of
Shares--Valuation of Shares".)
THE AMERICAN TIGER FUNDS' PORTFOLIOS
The shares of The American Tiger Top 20 Portfolio are sold at their net
asset value per share next determined after an order in proper form (i.e., a
completely filled out application form) is received by the Transfer Agent.
If an order for shares of the Portfolio is received by the Transfer Agent by
4:00 p.m. on any business day, such shares will be purchased at the net asset
value determined as of 4:00 p.m. New York Time on that day. Otherwise, such
shares will be purchased at the net asset value determined as of 4:00 p.m New
York Time on the next business day. However, orders received by the Transfer
Agent from the Distributor or from dealers or brokers after the net asset value
is determined that day will receive such net asset value price if the orders
were received by the Distributor or broker or dealer from its customer prior to
such determination and were transmitted to and received by the Transfer Agent
prior to its close of business on that day (normally 4:00 p.m. New York Time).
Shares are entitled to receive any declared dividends on the day following the
date of purchase.
PURCHASES THROUGH SELECTED DEALERS
Shares purchased through Selected Dealers will be effected at the net asset
value next determined after the Selected Dealer receives the purchase order,
provided that the Selected Dealer transmits the order to the Transfer Agent and
the Transfer Agent accepts the order by 4:00 p.m. New York Time on the day of
determination. See "Valuation of Shares". If an investor's order is not
transmitted and accepted by 4:00 p.m. New York Time, the investor must settle
his or her entitlement to that day's net asset value with the Selected Dealer.
Investors may also purchase shares of the Fund by telephone through a Selected
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Dealer by having the Selected Dealer telephone the Transfer Agent with the
purchase order. Investors may be charged a transaction fee if they effect
transactions in Fund shares through a broker or agent.
Certain selected Dealers may effect transactions in shares of the Portfolios
through the National Securities Clearing Corporation's Fund/SERV system.
Purchases of shares through Selected Dealers not utilizing the National
Securities Clearing Corporation's Fund/SERV system will be effected when
received in proper form by the Transfer Agent, as described above, in the same
manner and subject to the same terms and conditions as are applicable to shares
purchased directly through the Transfer Agent. There is a 4.95% sales load
charged to the investor on purchases of the Fund's Portfolio, whether purchased
through a Selected Dealer or directly through the Transfer Agent; there is
however an ongoing Rule 12b-1 fee applicable to The American Tiger Top 20
Portfolio.
Shareholders who wish to transfer Fund shares from one broker-dealer to
another should contact the Fund's Transfer Agent at (800) 622-1386.
TO INVEST BY BANK WIRE: Request a wire transfer to:
Rushmore Trust & Savings FSB
4922 Fairmont Avenue
Bethesda, MD 20814
Routing Number: 055071084
For Account of: The American Tiger Funds
Account Number: 029385770
AFTER INSTRUCTING YOUR BANK TO TRANSFER MONEY BY WIRE, YOU MUST TELEPHONE
THE FUND AT (800) 622-1386 OR (301) 657-1510 BETWEEN 8:30 A.M. AND 4:00 P.M. NEW
YORK TIME AND TELL US THE AMOUNT YOU TRANSFERRED AND THE NAME OF THE BANK
SENDING THE TRANSFER. YOUR BANK MAY CHARGE A FEE FOR SUCH SERVICES. IF THE
PURCHASE IS CANCELLED BECAUSE YOUR WIRE TRANSFER IS NOT RECEIVED, YOU MAY BE
LIABLE FOR ANY LOSS THE FUND MAY INCUR.
Such wire should identify the name of the Portfolio, the account number, the
order number (if available), and your name.
TO INVEST BY AUTOMATIC MONTHLY INVESTMENT PLAN:
Shareholders may make automatic monthly purchases of a Portfolio's shares by
executing an automatic monthly withdrawal application authorizing his/her/its
bank to transfer money from his/her/its checking account to the Transfer Agent
for the automatic monthly purchase of shares of the Portfolio for the
shareholder. There is no charge by the Portfolio for this automatic monthly
investment plan and the shareholder can discontinue the service at any time.
GENERAL PURCHASING INFORMATION
The existing portfolio of the Fund, the American Tiger Top 20 Portfolio, has
established a minimum initial investment of $2,000 ($500 in the case of IRA and
other retirement plans or qualifying group plans) and $100 for subsequent
investments in such Portfolio. Orders for shares may be made by mail by
completing the Account Application included with this Prospectus and mailing the
completed application and the payment for shares to the Transfer Agent.
Documentation in addition to the information required by the Account Application
may be required when deemed appropriate by the Fund and/or the Transfer Agent
and the Account Application will not be deemed complete until such additional
information has been received. The Fund reserves the right to not accept an
applicant's proposed investment in any of the Fund's shares.
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VALUATION OF SHARES
The net asset value of the shares of The American Tiger Top 20 Portfolio of
the Fund is determined once daily as of 4 p.m. New York Time, on days when the
New York Stock Exchange is open for trading. In the event that the New York
Stock Exchange or the national securities exchanges on which Portfolio stocks
are traded adopt different trading hours on either a permanent or temporary
basis, the Trustees of the Fund will reconsider the time at which net asset
value is to be computed. The net asset value is determined by adding the values
of all securities and other assets of the Portfolio, subtracting liabilities,
and dividing by the number of outstanding shares of the Portfolio. The price at
which a purchase is effected is based on the next calculation of net asset value
after the order is received.
In determining the value of the assets of each Portfolio, the securities for
which market quotations are readily available are valued at market value. Debt
securities (other than short-term obligations) are normally valued on the basis
of valuations provided by a pricing service when such prices are believed to
reflect the fair value of such securities. All other securities and assets are
valued at their fair value as determined in good faith by the Trustees, although
the actual calculations may be made by persons acting pursuant to the direction
of the Trustees.
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REDEMPTION OF SHARES
GENERAL
A shareholder may redeem shares of each Portfolio at the net asset value
next determined after receipt of a notice of redemption in accordance with the
procedures set forth below and compliance with the further redemption
information and/or additional documentation requirements described in this
Section. As used in this Prospectus, the term "business day " refers to those
days on which stock exchanges trading stocks held by the Fund are open for
business. The Fund may change the following procedures at its discretion.
The shareholder will not be credited with dividends on those shares being
redeemed for the day on which the shares are redeemed by the Portfolio (but will
be credited with dividends on the day such shares were purchased). A check for
the proceeds of redemption will normally be mailed within seven days of receipt
of any redemption request received by the Transfer Agent. If shares to be
redeemed were purchased by check, the Fund may delay transmittal of redemption
proceeds only until such times as it is reasonably assured that good payment has
been collected for the purchase of such shares, which may be up to 15 days from
purchase date. Such delays can be avoided by wiring Federal Funds in effecting
share purchases.
If a shareholder wishes to redeem his or her entire shareholdings in a
Portfolio, he or she will receive, in addition to the net asset value of shares,
all declared but unpaid dividends thereon. The net asset value of the shares may
be more or less than a shareholder's cost depending on the market value of the
Portfolio securities at the time of the redemption.
REDEMPTION BY MAIL
A shareholder may redeem shares by mail on each day that the New York Stock
Exchange is open by submitting a written redemption request to:
The American Tiger Funds
c/o Rushmore Trust & Savings, FSB
4922 Fairmont Avenue
Bethesda, MD 20814
The request for redemption should include the name of the Portfolio, the
account name and number, and should be signed by all registered owners of the
shares in the exact names in which they are registered. Each request should
specify the number or dollar amount of shares to be redeemed or that all shares
in the account are to be redeemed.
REDEMPTIONS BY TELEPHONE
If you have indicated on your Account Application that you wish to establish
telephone redemption privileges, you may redeem shares by calling the Transfer
Agent at 1-800-622-1386 by 4:00 p.m. New York Time on any day the New York Stock
Exchange is open for business.
If any account has more than one owner, the Transfer Agent may rely on the
instructions of any one owner. The American Tiger Top 20 Portfolio of the Fund
employs reasonable procedures in an effort to confirm the authenticity of
telephone instructions, which may include giving some form of personal
identification prior to acting on the telephone instructions. If these
procedures are not followed, the Fund and the Transfer Agent may be responsible
for any losses because of unauthorized or fraudulent instructions. By requesting
telephone redemption privileges, you authorize the Transfer Agent to act upon
any telephone instructions it believes to be genuine, (1) to redeem shares from
your account and (2) to mail or wire transfer the redemption proceeds. You
cannot redeem shares by telephone until 30 days after you have notified the
Transfer Agent of any change of address.
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Telephone redemption is not available for shares held in IRAs. The Portfolio
may change, modify, or terminate its telephone redemption services at any time
upon 30 days' notice.
FURTHER REDEMPTION INFORMATION
Additional documentation (i.e., signature guarantee for redemptions in
excess of $1,000 or verification identification when redemption is by telephone)
regarding a redemption by any means may be required when deemed appropriate by
the Fund and/or the Transfer Agent, and the request for such redemption will not
be considered to have been received in proper form until such additional
documentation has been received. An investor should contact the Fund or the
Transfer Agent to inquire what, if any, additional documentation may be
required.
The Fund reserves the right to modify any of the methods of redemption upon
30 days' written notice to shareholders.
Due to the high cost of maintaining accounts of less than $2,000 ($500 for
IRA or other qualifying plan accounts), the Fund reserves the right to redeem
shares involuntarily in any such account at their then current net asset value.
Shareholders will first be notified and allowed 30 days to make additional share
purchases to bring their accounts to more than $2,000 ($500 for IRA or other
qualifying plan accounts). An account will not be redeemed involuntarily if the
balance falls below $2,000 ($500 for IRA or other qualifying plan accounts) by
virtue of fluctuations in net asset value rather than through investor
redemptions.
Under certain circumstances (i.e., when the applicable exchange is closed or
trading has been restricted, etc.), the right of redemption may be suspended or
the redemption may be satisfied by distribution of portfolio securities rather
than cash if a proper election pursuant to Rule 18F-1 of the Investment Company
Act has been made by the Fund. Information as to those matters is set forth in
the Statement of Additional Information.
Investors may redeem their shares and instruct the Fund or Transfer Agent,
in writing or by telephone, to either deposit the redemption proceeds in the
money market mutual fund--Fund for Government Investors, Inc.--a regulated
investment company custodied by Rushmore Trust & Savings, FSB, pending further
instructions as to the investor's desire to subsequently reinvest in the Fund or
the investor may direct some other disposition of said redemption proceeds.
OPTION TO MAKE SYSTEMATIC WITHDRAWALS
The owner of $25,000 or more worth of the shares of The American Tiger Top
20 Portfolio may provide for the payment from his/her account of any requested
dollar amount (but not less than $1,000) to him/her or his/her designated payee
monthly, quarterly, or annually. Shares will be redeemed on the last business
day of each month. Unless otherwise instructed, the Transfer Agent will mail
checks to the shareholder at his/her address of record. A sufficient number of
shares will be redeemed to make the designated payment.
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CERTAIN SERVICES PROVIDED TO SHAREHOLDERS
STATEMENTS OF ACCOUNT
Statements of Account for The American Tiger Top 20 Portfolio will be sent
to each shareholder at least quarterly.
DIVIDEND ELECTION
A shareholder may elect to receive dividends in shares or in cash. If no
election is made, dividends will automatically be credited to a shareholder's
account in additional shares of the Portfolio to which such dividend relates.
EXCHANGE PRIVILEGES
Shares of The American Tiger Top 20 Portfolio may be exchanged in the future
for the shares of another Portfolio, if any, of the Fund, at net asset value.
Exchanges among portfolios of the Fund may be made only in those states where
such exchanges may legally be made. The total value of shares being exchanged
must at least equal the minimum investment requirement of the Portfolio into
which they are being exchanged. Exchanges are made based on the net asset value
next determined of the shares involved in the exchange. Only one exchange in any
30-day period is permitted. The Fund reserves the right to restrict the
frequency or otherwise modify, condition, terminate, or impose charges upon the
exchange, upon 60 days' prior written notice to shareholders. Exchanges between
Portfolios will be subject to a $5 exchange fee after five (5) exchanges per
year. There is a limit of ten (10) exchanges per year. Exchanges will be
effected by the redemption of shares of the Portfolio held and the purchase of
shares of the other Portfolio. For federal income tax purposes, any such
exchange constitutes a sale upon which a gain or loss, if any, may be realized,
depending upon whether the value of the shares being exchanged is more or less
than the shareholder's adjusted cost basis. For this purpose, however, a
shareholder's cost basis may not include the sales charge, if any, if the
exchange is effectuated within 90 days of the acquisition of the shares.
Shareholders wishing to make an exchange should contact the Transfer Agent.
Exchange requests in the form required by the Transfer Agent and received by the
Transfer Agent prior to 4:00 p.m. New York Time will be effected at the next
determined net asset value.
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ADDITIONAL INFORMATION
The Statement of Additional Information, available upon request, without
charge from the Fund, provides a further discussion of certain sections of the
Prospectus and other information which may be of interest to certain investors.
This Prospectus and the Statement of Additional Information do not contain all
the information included in the Registration Statement filed with the Securities
and Exchange Commission with respect to the securities being sold, certain
portions of which have been omitted pursuant to the rules and regulations of the
Securities and Exchange Commission. The Registration Statement, including the
exhibits filed therewith, may be examined at the office of the Securities and
Exchange Commission in Washington, D.C.
Statements contained in this Prospectus as to the contents of any contract
or other document referred to are not necessarily complete, and, in each
instance, reference is made to the Statement of Additional Information and the
copy of such contract or other document filed as an exhibit to the Registration
Statement of which this Prospectus forms a part, each such statement being
qualified in all respects by such reference.
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ASSENT TO TRUST INSTRUMENT
Every Shareholder, by virtue of having purchased a Share or Interest shall
become a Shareholder and shall be held to have expressly assented and agreed to
be bound by the terms hereof.
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INVESTMENT ADVISOR
Navellier Management, Inc.
One East Liberty, Third Floor
Reno, NV 89501
(800) 887-8671
DISTRIBUTOR
GSG Securities, Inc.
980 North Federal Highway, Suite 210
Boca Raton, FL 33432
(800) 723-3326
INDEPENDENT AUDITORS
Tait, Weller & Baker
Certified Public Accountants
8 Penn Center, Suite 800
Philadelphia, PA 19103-2108
(215) 979-8800
TRANSFER AGENT AND CUSTODIAN
Rushmore Trust & Savings, FSB
4922 Fairmont Avenue
Bethesda, MD 20814
(800) 622-1386
COUNSEL
Samuel Kornhauser
Law Offices of Samuel Kornhauser
155 Jackson Street, Suite 1807
San Francisco, CA 94111
(415) 981-6281
SALES INFORMATION
GSG Securities, Inc.
980 North Federal Highway, Suite 210
Boca Raton, FL 33432
(800) 723-3326
SHAREHOLDER INQUIRIES
Rushmore Trust & Savings, FSB
4922 Fairmont Avenue
Bethesda, MD 20814
(800) 622-1386
THE AMERICAN TIGER FUNDS
[LOGO]
SEPTEMBER 30, 1998
