33-[ ]
811-10119
As filed with the Securities and Exchange Commission on September 6, 2000
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / X /
Pre-Effective Amendment No. __ /___/
Post-Effective Amendment No. __ /___/
and/or
REGISTRATION STATEMENT UNDER
THE INVESTMENT COMPANY ACT OF 1940 / X /
Amendment No. __ /___/
(Check appropriate box or boxes)
Islamic Global Equity Fund
(Exact Name of Registrant as Specified in Charter)
21 Milk Street, Boston, Massachusetts 02109
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code: (617) 423-0800
Philip W. Coolidge, 21 Milk Street, Boston, Massachusetts 02109
(Name and Address of Agent for Service)
Copy to:
John E. Baumgardner, Jr.
Sullivan & Cromwell, 125 Broad Street, New York, NY 10004
Approximate Date of Proposed Public Offering: As soon as practicable after the
effective date of this registration statement under the Securities Act of 1933.
The Registrant hereby amends this registration statement on such date or dates
as may be necessary to delay its effective date until the Registrant shall file
a further amendment which specifically states that this registration statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the registration statement shall become
effective on such date as the Securities and Exchange Commission, acting
pursuant to Section 8(a), may determine.
<PAGE>
-------------------------------------------------------------------------------
PROSPECTUS
Islamic Global Equity Fund
21 Milk Street, Boston, Massachusetts 02109
The Islamic Global Equity Fund (the Fund) is designed to provide Muslim
investors with a cost-effective and convenient means to participate faithfully,
in the returns available from global equity markets. Shares of the Fund are
offered by this Prospectus.
The Islamic Global Equity Fund invests all of its assets in the Dow Jones
Islamic Market Index Portfolio (the Portfolio).
Shares of the Fund are offered at net asset value plus an initial sales
charge.
------------------------------------------------------------------------------
Neither The Securities And Exchange Commission Nor Any State Securities
Commission Has Approved Or Disapproved Of These Securities Or Passed Upon
The Adequacy Or Accuracy Of This Prospectus. Any Representation To The
Contrary Is A Criminal Offense.
------------------------------------------------------------------------------
The date of this Prospectus is [ ], 2000.
<PAGE>
TABLE OF CONTENTS
Page
--------
Investment Objective 1
Investment Strategies 1
Principal Risk Factors 2
Fund Performance 4
Fees and Expenses of the Fund 5
Investment Manager and Investment Adviser 6
Shareholder Information 6
Additional Information 9
Appendix 10
<PAGE>
INVESTMENT OBJECTIVE
The investment objective of the Fund is to provide investors with long-term
capital growth by matching the performance of the Dow Jones Islamic Market
Indexsm (the Index), a globally diversified compilation of equity securities
considered by Dow Jones' Shari'ah Supervisory Board to be in compliance with
Shari'ah principles.
INVESTMENT STRATEGIES
The Fund invests all of its assets in the Dow Jones Islamic Market Index
Portfolio, an investment company having the same investment objective as the
Fund. Under normal circumstances the Investment Manager fully invests in
securities which are included in the Index. Any uninvested cash is held in
non-interest bearing deposits or invested in a manner compliant with the
Shari'ah principles.
Dow Jones selection process begins by excluding those firms included in the
Dow Jones Global Index who do not meet specific business line and financial
requirements. The selection criteria and key features established by Dow Jones
for exclusion of a company from its Index and, in turn, the Portfolio and the
Fund are as follows.
Specifically, Dow Jones excludes firms with the following product lines:
o Alcohol
o Pork related products
o Conventional financial services (banking, insurance, etc.)
o Entertainment (hotels, casinos/gambling, cinema, pornography, music etc.)
o Tobacco
o Defense
These incompatible lines of business, represented by 18 of the 122 industry
groups within the Dow Jones Global Indexes are removed from the "universe" of
stocks considered for the Index. Other companies classified in other industry
groups may also be excluded if they are deemed to have a material ownership in
or revenues from prohibited business activities.
After removing companies with unacceptable primary business activities, the
remaining universe is tested by three financial-ratio "filters". The purpose is
to remove companies with unacceptable financial ratios.
The filters exclude companies if:
1. Total debt dividend by total assets is equal to or greater than 33%;
(Note: total debt = short term debt + current portion of long-term
debt + long-term debt)
2. Accounts receivables divided by total assets is equal to or greater
than 45%; or
(Note: accounts receivables = current receivables + long-term
receivables)
3. Non-operating interest income plus impure dividend income divided
by revenues is equal to or greater than 5%.
Companies that pass these screens are included in the Index investable
universe, from which Index components are selected.
Dow Jones' Shari'ah Supervisory Board has approved of the above criteria and
any changes in the Shari'ah Supervisory Board or the selection criteria are at
the sole discretion of Dow Jones. Members of the Dow Jones' Shari'ah Supervisory
Board on the date of this prospectus are listed in the Appendix. Changes by Dow
Jones in the selection criteria or the composition of the Index are reflected in
the composition of the Portfolio in a reasonable period of time.
There is no guarantee that the Fund will achieve the same return as the
Index. Due to the large number of stocks in the Index, the Portfolio may
purchase a sub-group of equities from those contained in the Index that the
Investment Manager believes will best track the Index. As the assets of the
Portfolio grow, it is anticipated the holdings of the Portfolio will be
increased to include more of the components of the Index.
In response to adverse market, economic, political or other conditions, the
Portfolio may make temporary investments that are not consistent with its
investment objective and principal investment strategies. Such investments may
prevent the Portfolio from achieving its investment objective.
PRINCIPAL RISK FACTORS
The principal risks of investing in the Fund and the circumstances reasonably
likely to adversely affect an investment are described below. The share price of
the Fund changes daily based on market conditions and other factors. A
shareholder may lose money by investing in the Fund.
The principal risks of investing in the Fund are:
o Market Risk
This is the risk that the price of a security falls due to changing
economic, political or market conditions, or due to a company's
individual situation.
o Index Investing Risk
Unlike other non-index investment portfolios, the Portfolio is not
engaged in buying and selling of securities based upon economic,
financial and market analysis and investment judgement. Instead the
Portfolio is invested under an indexed investment approach, which
attempts to approximate the investment performance of the Index.
Therefore, an investor should not expect to achieve the potentially
greater results that could be obtained by investment portfolios that
aggressively seek growth or investment portfolios that attempt to limit
losses in a falling market.
The Portfolio uses a model to evaluate the Index's risk factors and
construct a representative sample of the Index that has a similar risk
exposure to the Index. The strategy of investing in a representative
sample of Index components may result in some deviation between Portfolio
performance and that of the Index. The Portfolio's return is also likely
to be lower than that of the Index because the Portfolio incurs brokerage
commissions, transaction fees and other expenses. However, transaction
costs will likely be lower than typical stock funds because of lower
portfolio turnover. In addition, the Portfolio's ability to replicate the
Index return will depend to a certain extent on cash flow into and out of
the Portfolio. Even if the Portfolio's investments were fairly
representative of the Index its return could differ because of
differences in how the Portfolio and the Index are valued. The Index is
valued by Dow Jones, which may use different closing prices, currency
exchange rates or dividend reinvestment assumptions than the Portfolio
does.
o Foreign Investment Risk
Changes in political or social conditions, diplomatic relations,
confiscatory taxation, expropriation, nationalization, limitation on the
removal of funds or assets, or imposition of (or change in) exchange
control or tax regulations may adversely affect the value of such
investments. Changes in government administrations or economic or
monetary policies in the United States or other countries could result in
appreciation or depreciation of portfolio securities and could favorably
or unfavorably affect the operations of the Portfolio. The economies of
individual foreign nations differ from the U.S. economy, whether
favorably or unfavorably, in areas such as growth or gross domestic
product, rate of inflation, capital reinvestment, resource
self-sufficiency and balance of payments position. It may be more
difficult to obtain and enforce a judgment against a foreign company.
Dividends paid by foreign issuers may be subject to withholding and other
foreign taxes which may decrease the net return on foreign investments as
compared to dividends paid by domestic companies.
In addition, while the volume of transactions effected on foreign
stock exchanges has increased in recent years, in most cases it remains
appreciably below that of the New York Stock Exchange. Accordingly,
foreign investments are less liquid and their prices are more volatile
than comparable investments in securities of U.S. companies. Moreover,
the settlement periods for foreign securities, which are often longer
than those for securities of U.S. companies, may affect portfolio
liquidity. In buying and selling securities on foreign exchanges, fixed
commissions are normally paid that are generally higher than the
negotiated commissions charged in the United States. In addition, there
is generally less government supervision and regulation of securities
exchanges, brokers and companies in foreign countries than in the United
States.
The foreign investments made by the Portfolio are made in compliance
with the currency regulations and tax laws of the United States and
foreign governments. There may also be foreign government regulations and
laws that restrict the amounts and types of foreign investments.
Because securities in the Portfolio are denominated and pay dividends
in various currencies, and the Portfolio holds various foreign currencies
from time to time, the value of the net assets of the Portfolio as
measured in U.S. dollars is affected favorably or unfavorably by changes
in exchange rates. The Portfolio also incurs costs in connection with
conversion between various currencies.
o Developing Countries Investment Risk
The Portfolio may invest its assets in securities of issuers based in
developing countries. Investments in securities of issuers in developing
countries may involve a high degree of risk and many may be considered
speculative. These investments carry all of the risks of investing in
securities of foreign issuers outlined in this section to a heightened
degree. These heightened risks include: (i) greater risks of
expropriation, confiscatory taxation, nationalization, and less social,
political and economic stability; (ii) the small current size of the
markets for securities of issuers in developing countries and the
currently low or non-existent volume of trading resulting in lack of
liquidity and in price volatility; (iii) certain national policies which
may restrict the Portfolio's investment opportunities, including
restrictions on investing in issuers or industries deemed sensitive to
relevant national interests; and (iv) the absence of developed legal
structures governing private or foreign investment and private property.
o Non-Diversification Risk
The Portfolio is classified as "non-diversified" under the 1940 Act,
which means that it is not limited by the 1940 Act with respect to the
proportion of its assets which may be invested in securities of a single
issuer (although certain diversification requirements are imposed by the
Internal Revenue Code of 1986, as amended).
o Islamic Shari'ah Investment Risk
It is possible that the restrictions placed on investments, in
particular the prohibition on interest bearing investments and the cost
of donations by the Portfolio of parts of dividends which are
attributable to interest related activities, may result in the Portfolio
performing less well than portfolios with similar investment objectives
which are not subject to Islamic Shari'ah restrictions.
[TEXT APPEARS IN BOLDFACE]
Investments in the Fund are neither insured nor guaranteed by the U.S.
Government. Shares of the Fund are not deposits or obligations of, or guaranteed
by, Brown Brothers Harriman & Co. or any other bank, and the shares are not
insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board
or any other federal, state or other governmental agency.
<PAGE>
FUND PERFORMANCE
Historical total return information for any period or portion thereof prior to
the establishment of the Fund will be that of the Dow Jones Islamic Market Index
Portfolio adjusted to assume that all charges, expenses and fees which are
presently in effect were deducted during such periods, as permitted by
applicable SEC staff interpretations. Since the Fund has not been in existence
for a full calendar year, bar chart information is not included.
<TABLE>
<CAPTION>
------------------------------------------------------------------ ------------------------- -------------------------
Highest and Lowest Return
(Quarterly 1999-2000)
------------------------------------------------------------------ ------------------------- -------------------------
<S> <C> <C>
Return Quarter Ending
Highest 16.05% 12/31/99
Lowest 3.85% 9/30/99
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------- -------------------- ---------------------------------------------------
Average Annual Total Returns
(through December 31, 1999)
--------------------------------------------- -------------------- ---------------------------------------------------
<S> <C> <C>
Life of Fund Year to Date
(since 7/1/99) (through 6/30/00)
Islamic Global Equity Fund 11.59% -2.00%
Dow Jones Islamic Market Index 13.91% -2.15%
S&P 500 Index 7.70% -0.42%
--------------------------------------------- -------------------- ------------------------- -------------------------
</TABLE>
<PAGE>
FEES AND EXPENSES OF THE FUND
The tables below describe the fees and expenses that an investor may pay
if that investor buys and holds shares of the Fund.
SHAREHOLDER FEES
(Fees paid directly from an investor's account)
Maximum Sales Charge (Load)
Imposed on Purchases 4.50%
Maximum Deferred Sales Charge (Load) None
Maximum Sales Charge (Load)
Imposed on Reinvested Dividends None
Redemption Fee None
Exchange Fee None
ANNUAL FUND OPERATING EXPENSES1
(Expenses that are deducted from Fund assets as a percentage
of average net assets
Management Fees 0.40%
Distribution (12b-1) Fees2 0.50%
Other Expenses 0.60%
-----
Total Annual Fund Operating Expenses 1.50%
=====
1 The expenses shown for the Fund include the expenses of the Portfolio.
2 The Fund has adopted a distribution plan under Rule 12b-1 that permits it to
pay marketing and other fees to support the sale and distribution of shares
of the Fund and the services provided to shareholders by their financial
advisers (referred to as distribution and service fees).
EXAMPLE3
This example is intended to help an investor compare the cost of investing
in the Fund to the cost of investing in other mutual funds. The example assumes
that an investor invests $10,000 in the Fund for the time periods indicated and
then sells all of his shares at the end of those periods. The example also
assumes that an investment has a 5% return each year and that the Fund's
operating expenses remain the same as shown in the table above. Although actual
costs on an investor's investment may be higher or lower, based on these
assumptions the investor's costs would be:
1 year $153
3 years $474
----------------------------------------------------------------------------
3 The example above reflects the expenses of the Fund and the Portfolio.
<PAGE>
INVESTMENT MANAGEMENT
Investment Manager
The Investment Manager to the Portfolio is Brown Brothers Harriman & Co.,
Private Bankers, a New York limited partnership established in 1818. The firm is
subject to examination and regulation by the Superintendent of Banks of the
State of New York and by the Department of Banking of the Commonwealth of
Pennsylvania. The firm is also subject to supervision and examination by the
Commissioner of Banks of the Commonwealth of Massachusetts. The Investment
Adviser is located at 59 Wall Street, New York, NY 10005.
The Investment Manager provides portfolio management services to the
Portfolio. Subject to the general supervision of the Trustees of the Portfolio
and based upon advice given by Wafra Investment Advisory Group, Inc. (the
Investment Adviser or Wafra), the Investment Manager makes the day-to-day
investment decisions for the Portfolio, places the purchase and sale orders for
the portfolio transactions of the Portfolio, and generally manages the
Portfolio's investments. Brown Brothers Harriman & Co. provides a broad range of
investment management services for customers in the United States and abroad. At
June 30, 2000, it managed total assets of approximately $35 billion. Brown
Brothers Harriman & Co. has managed assets for Middle Eastern and Southeast
Asian clients for more than 40 years. Numbered among these clients are large
families and institutions who have chosen Brown Brothers Harriman & Co. to
manage their portfolios in compliance with Islamic Shari'ah principles. As
interest in Shari'ah has grown during the years, Brown Brothers Harriman & Co.
has expanded its product offerings to include global equity investing in
compliance with Shari'ah. The Fund brings this investment management expertise
to North American investors.
The Portfolio is managed on a day to day basis by a team of individuals
including Mr. Young Chin and Mr. Paul R. Lenz. Mr. Chin holds a B.A. and a
M.B.A. from the University of Chicago. He joined Brown Brothers Harriman & Co.
in 1999. Prior to joining Brown Brothers Harriman & Co., he worked at Blackrock
Financial Management. Mr. Lenz holds a B.S. from The State University of New
York, Stonybrook, a M.S. from the University of Oregon and a Ph.D. from the
University of Wisconsin, Madison. He joined Brown Brothers Harriman & Co. in
1996. Prior to joining Brown Brothers Harriman & Co., he worked for Arco
Investment Management Company.
Investment Adviser
The Investment Adviser of the Portfolio is Wafra Investment Advisory Group,
Inc., 345 Park Avenue, New York, NY 10154. Wafra is a U.S. registered investment
adviser beneficially owned by one of the largest Arab financial institutions.
Founded in 1985, Wafra is an investment management company offering an extensive
range of investment services including portfolio securities management, direct
equity investing, real estate and other structured products management, with a
special emphasis on Islamic investment management.
Originally founded to manage funds in the U.S. for financial institutions of
Kuwait and other Gulf States, Wafra has broadened its mission and now serves
over 30 institutional and private clients from around the world. Together with
its affiliates, Wafra manages in excess of $3 billion of assets.
By combining Wafra's strong ties to Islamic financial institutions with its
New York based multi-cultural investment professionals' skills, Wafra is
uniquely positioned to offer superior investment opportunities in accordance
with Islamic principles. Wafra has a thorough understanding of Islamic
restrictions and guidelines and through its management and sponsorship of its
Islamic investment products, is associated with several esteemed Shari'ah
Advisory Boards and large Islamic financial institutions.
The Investment Adviser will provide investment advisory services to the
Portfolio and the Investment Manager. For performing such investment advisory
services, the Investment Adviser receives such compensation from the Investment
Manager as from time to time is agreed upon.
For the services provided and the expenses borne, the Investment Manager and
the Investment Adviser jointly receive from the Portfolio as full compensation
therefor an aggregate fee at an annual rate equal to 0.40% of the Portfolio's
average daily net assets. This fee is computed based on net assets at 4:00P.M.
New York time on each day the New York Stock Exchange is open for trading, is
paid monthly during the succeeding calendar month and is shared between the
Investment Manager and Investment Adviser as from time to time may be agreed
upon by the Investment Manager and the Investment Adviser.
SHAREHOLDER INFORMATION
NET ASSET VALUE
The Fund determines its net asset value per share once daily at 4:00 P.M.,
New York time on each day the New York Stock Exchange is open for regular
trading. The determination of the Fund's net asset value is made by subtracting
from the value of the total net assets of the Fund the amount of its liabilities
and dividing the difference by the number of shares of the Fund outstanding at
the time the determination is made.
The Portfolio values its assets on the basis of their market quotations and
valuations provided by independent pricing services. If quotations are not
readily available, the assets are valued at fair value in accordance with
procedures established by the Portfolio's Trustees.
PURCHASE OF SHARES
The Fund offers its shares on a continuous basis at their net asset value
plus an initial sales charge. The Fund reserves the right to determine the
purchase orders for shares that it will accept. Investors may purchase shares on
any day the net asset value is calculated if the Fund receives the purchase
order, including acceptable payment for such order, prior to such calculation.
The Fund then executes purchases of its shares at the net asset value per share
next determined, plus an initial sales charge. Shares are entitled to dividends
declared, if any, starting as of the first business day following the day the
Fund executes the purchase order on the books of the Fund. The net asset value
may change on days when investors will not be able to invest in or withdraw
their investment from the Fund.
An investor who has an account with a financial intermediary may place
purchase orders for Fund shares through that financial intermediary which holds
such shares in its name on behalf of that customer pursuant to arrangements made
between that customer and that financial intermediary. Each financial
intermediary may establish and amend from time to time a minimum initial and a
minimum subsequent purchase requirement for its customers. Each financial
intermediary arranges payment for Fund shares on behalf of its customers. A
financial intermediary may charge a transaction fee on the purchase of Fund
shares.
An investor who does not have an account with a financial intermediary must
place purchase orders for Fund shares with the Fund through Forum Shareholder
Services, LLC, the Fund's Transfer Agent. Such an investor has such shares held
directly in the investor's name on the books of the Fund and is responsible for
arranging for the payment of the purchase price of Fund shares. The Fund
executes all purchase orders for initial and subsequent purchases at the net
asset value per share next determined, plus an initial sales charge, after the
Fund's Transfer Agent, has received payment in the form of a cashier's check
drawn on a U.S. bank, a check certified by a U.S. bank or a wire transfer. The
Fund has established a minimum initial purchase requirement of $100,000 and a
minimum subsequent purchase requirement of $25,000 for an investor who does not
have an account with a financial intermediary. These minimum purchase
requirements may be amended from time to time.
REDEMPTION OF SHARES
The Fund executes your redemption request at the next net asset value
calculated after the Fund receives your redemption request. Shares continue to
earn dividends declared, if any, through the business day that the Fund executes
the redemption request on the books of the Fund.
Shareholders must redeem shares held by a financial intermediary on behalf of
such shareholder pursuant to arrangements made between that shareholder and that
financial intermediary. The Fund pays proceeds of a redemption to that
shareholder's account at that financial intermediary on a date established by
the financial intermediary. A financial intermediary may charge a transaction
fee on the redemption of Fund shares.
Shareholders may redeem shares held directly in the name of a shareholder on
the books of the Fund by submitting a redemption request to the Transfer Agent.
The Fund pays proceeds resulting from such redemption directly to the
shareholder generally on the next business day after the redemption request is
executed, and in any event within seven days.
Redemptions by the Fund
The Fund has established a minimum account size of $100,000, which may be
amended from time to time. If the value of a shareholder's holdings in the Fund
falls below that amount because of a redemption of shares, the Fund may redeem
the shareholder's remaining shares. If such remaining shares are to be redeemed,
the Fund notifies the shareholder and allows the shareholder 60 days to make an
additional investment to meet the minimum requirement before the redemption is
processed. Each financial intermediary may establish and amend from time to time
for their respective customers a minimum account size, each of which may be
lower than that established by the Fund.
Further Redemption Information
Redemptions of shares are taxable events on which a shareholder may realize a
gain or a loss.
The Fund has reserved the right to pay the amount of a redemption from the
Fund, either totally or partially, by a distribution in kind of securities
(instead of cash) from the Fund.
The Fund may suspend a shareholder's right to receive payment with respect to
any redemption or postpone the payment of the redemption proceeds for up to
seven days and for such other periods as applicable law may permit. Redemptions
may be suspended or payment dates postponed when the NYSE is closed (other than
weekends or holidays), when trading on the NYSE is restricted, or as permitted
by the SEC.
DIVIDENDS AND DISTRIBUTIONS
The Fund declares and pays to shareholders substantially all of its net
income and any realized net short-term capital gains semi-annually as a
dividend, and substantially all of its realized net long-term capital gains, if
any, annually as a capital gains distribution. The Fund may make an additional
dividend and/or capital gains distribution in a given year to the extent
necessary to avoid the imposition of federal excise tax on the Fund. The Fund
pays dividends and capital gains distributions to shareholders of record on the
record date. The Fund's net income and realized net capital gains include that
Fund's pro rata share of the Portfolio's net income and realized net capital
gains.
Unless a shareholder whose shares are held directly in the shareholder's name
on the books of the Fund elects to have dividends and capital gains
distributions paid in cash, the Fund automatically reinvests dividends and
capital gains distributions in additional Fund shares without reference to the
minimum subsequent purchase requirement.
Each financial intermediary may establish its own policy with respect to the
reinvestment of dividends and capital gains distributions in additional Fund
shares.
TAXES
Dividends are taxable to shareholders of the Fund as ordinary income, whether
such dividends are paid in cash or reinvested in additional shares. Capital
gains may be taxable at different rates depending on the length of time the
Portfolio holds its assets. Capital gains distributions are taxable to
shareholders as long-term capital gains, whether paid in cash or reinvested in
additional shares and regardless of the length of time a particular shareholder
has held Fund shares.
The treatment of the Fund and its shareholders in those states which have
income tax laws might differ from treatment under the federal income tax laws.
Therefore, distributions to shareholders may be subject to additional state and
local taxes. Shareholders are urged to consult their tax advisors regarding any
state or local taxes.
Foreign Investors
The Fund is designed for investors who are either citizens of the United
States or aliens subject to United States income tax. Prospective investors who
are not citizens of the United States and who are not aliens subject to United
States income tax are subject to United States withholding tax on the entire
amount of all dividends. Therefore, such investors should not invest in the Fund
since alternative investments may be available which would not be subject to
United States withholding tax.
<PAGE>
ADDITIONAL INFORMATION
Other mutual funds or institutional investors may invest in the Portfolio on
the same terms and conditions as the Fund. However, these other investors may
have different aggregate performance results. The Fund may withdraw the its
investment in the Portfolio at any time as a result of changes in the
Portfolio's investment objective, policies or restrictions or if the Board of
Trustees determines that it is otherwise in the best interests of the Fund to do
so.
Trustees of the Fund
[NAMES AND CURRENT POSITIONS OF FUND TRUSTEES TO BE INSERTED]
<PAGE>
APPENDIX
<TABLE>
<CAPTION>
The Shari'ah Supervisory Board consists of:
<S> <C> <C>
Shaykh Abdul Sattar Abu Ghuddah, Senior advisor to Albaraka Investment Co. of Saudi Arabia and
Syria Syria
Shaykh Justice Muhammed Taqi Shaykh Usmani has been a member of the Supreme Court of
Usmani, Pakistan Pakistan since 1982. He is Deputy Chairman of the Islamic Fiqh
Academy, Jeddah, and chairman
or members of more than a dozen
Shari'ah supervisory boards.
Shaykh Yaquby, Bahrain Shaykh Mizam Yaquby is a renowned Shari'ah scholar and advisor
to numerous Islamic banks and companies, including Abu Dhabi
Islamic Bank, Islamic Investment Company of the Gulf, Bahrain
and the Arab Islamic Bank, Bahrain. He pursued traditional
Islamic studies in Mecca, India and Morocco under the guidance
of eminent Islamic scholars, including Shaykh Abdullah
Al-Farisi and Shaykh Muhammad Salah Al-Abbasi. He holds a B.A.
in Economics and Comparative Religion from McGill University,
Toronto. He is a Ph.D. candidate in Islamic Law at the
University of Wales. Shaykh Yaquby has published several books
on Islam law and is a frequent speaker at Islamic conferences.
Shaykh Dr. Mohamed Ali Dr. Mohamed Ali Elgari is the director of the Center for
Eligari, Saudi Arabia Research in Islamic Economics at King Abdulaziz University in
Jeddah. He is also a member of the OIC Fiqh Council. Dr.
Elgari serves as a consultant to Islamic banks and has served
on the consulting committee that counseled the Government of
Pakistan on the Islamization of its banking system. Dr. Elgari
holds a Ph.D. in Economics from the University of California.
Shaykh Yusuf Tala Shaykh Yusuf Talal DeLorenzo is currently a Shari'ah
DeLorenzo, United States consultant/advisor and translator/researcher for the
institution of Islamic Banking, London, and PCS Inc., Reston,
VA. He holds an M.A. in Islamic Studies from Jami'ah al Ulum al
Islamiyah (Karachi) and is a doctoral candidate at the
Hartford Seminary. Shaykh DeLorenzo produced the first
systematic academic translation in English of legal rulings
issued by Shari'ah advisory boards on the operations of
Islamic banks, entitled, A Compendium of Legal Rulings on
the Operations of Islamic Banks. He has also authored
original research in Islamic studies, including Islamic
banking and law, in English, Arabic and Urdu.
</TABLE>
<PAGE>
The Islamic Global
Equity Fund
More information on the Fund is available free upon request, including the
following:
o Annual/Semi-Annual Report
Describes the Fund's performance, lists portfolio holdings and contains a letter
from the Fund's Investment Manager discussing recent market conditions, economic
trends and Fund strategies that significantly affected the Fund's performance
during its last fiscal year.
o Statement of Additional Information (SAI)
Provides more details about the Fund and its policies. A current SAI is on file
with the Securities and Exchange Commission (SEC) and is incorporated by
reference (is legally considered part of this prospectus).
To obtain information or make shareholder inquiries:
o By telephone:
Call 1-800-575-1265
o By mail write to the Fund's Transfer Agent:
Forum Shareholder Services, LLC
Two Portland Square
Portland, ME 04101
o On the Internet:
Text-only versions of Fund documents can be viewed online or downloaded from
http://www.sec.gov
You can also review or obtain copies by visiting the SEC's Public Reference Room
in Washington, DC or by sending your request and a duplicating fee to the SEC's
Public Reference Section, Washington, DC 20549-0102. Information on the
operations of the Public Reference Room may be obtained by calling
1-202-942-8090. Additionally, this information is available on the EDGAR
database at the SEC's internet site at http://www.sec.gov. A copy may be
obtained, after paying a duplicating fee, by electronic request at the following
e-mail address: [email protected].
SEC file number: 811-
<PAGE>
Islamic Global Equity Fund
Prospectus
[ ], 2000
<PAGE>
---------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
ISLAMIC GLOBAL EQUITY FUND
21 Milk Street, Boston, Massachusetts 02109
---------------------------------------------------------------
The Islamic Global Equity Fund (the "Fund"), a Massachusetts business
trust organized on August 31, 2000 (the "Fund"), is a management investment
company registered under the Investment Company Act of 1940, as amended (the
"1940 Act"). The Fund's investment objective is to seek long-term capital gains
by matching the performance of the Dow Jones Islamic Market Index(SM) (the
"Index"), a globally diversified compilation of equity securities considered by
Dow Jones Shari'ah Supervisory Board to be in compliance with Shari'ah
principles. There can be no assurance that the investment objective of the Fund
will be achieved.
The Fund seeks to achieve its investment objective by investing all of
its assets in the Dow Jones Islamic Market Index Portfolio (the "Portfolio"), a
open-end investment company having the same investment objective as the Fund.
Brown Brothers Harriman & Co. is the investment manager (the
"Investment Manager") of the Portfolio. Wafra Investment Advisory Group, Inc. is
the investment adviser (the "Investment Adviser") of the Portfolio. This
Statement of Additional Information is not a prospectus and should be read in
conjunction with the Prospectus dated [ ], 2000 a copy of which may be obtained
from the Fund at the address noted above.
<TABLE>
<CAPTION>
Table of Contents
<S> <C> <C>
Cross-Reference
Page to Page in Prospectus
Investments
Investment Objective and Policies . . . . . . . . . 2 3
Investment Restrictions . . . . . . . . . . . . . . 7
Management
Trustees and Officers . . . . . . . . . . . . . . . 9
Investment Adviser and Investment Manager. . . . . . . . . . 13 6
Administrator . . . . . . . . . . . . . . . . . . . 15
Distributor . . . . . . . . . . . . . . . . . . . . 16
Distribution and Shareholder Servicing. . . . . . . . . . . . 15-18
Custodian, Transfer and Dividend Disbursing Agent 18
Independent Auditors 18
Net Asset Value; Redemption in Kind . . . . . . . . 18 6
Computation of Performance . . . . . . . . . . . . . 19
</TABLE>
The date of this Statement of Additional Information is [], 2000.
<PAGE>
<TABLE>
<CAPTION>
Table of Contents
<S> <C>
Page
Purchases and Redemptions 21
Federal Taxes . . . . . . . . . . . . . . . . . . . 21
Description of Shares . . . . . . . . . . . . . . . 24
Portfolio Brokerage Transactions . . . . . . . . . . . . . . . 26
Additional Information . . . . . . . . . . . . . . . 27
Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . 27
</TABLE>
The date of this Statement of Additional
Information is [ ], 2000.
<PAGE>
INVESTMENT OBJECTIVE AND POLICIES
---------------------------------------------------------------
The following supplements the information contained in the Prospectus
concerning the investment objective, policies and techniques of the Portfolio.
The investment objective of the Dow Jones Islamic Market Index
Portfolio (the "Portfolio") is to seek long-term capital gains by matching the
performance of the Dow Jones Islamic Market Index (SM) (the "Index"), a globally
diversified compilation of equity securities considered by Dow Jones' Shari'ah
Supervisory Board to be in compliance with Shari'ah principles.
<TABLE>
<CAPTION>
At the Portfolio's inception, the Shari'ah Supervisory Board consists
of:
<S> <C> <C>
Shaykh Abdul Sattar Abu Ghuddah, Senior advisor to Albaraka Investment Co. of Saudi Arabia
Syria and Syria
Shaykh Justice Muhammed Taqi Shaykh Usmani has been a member of the Supreme Court of
Usmani, Pakistan Pakistan since 1982. He is Deputy Chairman of the Islamic
Fiqh Academy, Jeddah, and
chairman or members of
more than a dozen Shari'ah
supervisory boards.
Shaykh Yaquby, Bahrain Shaykh Mizam Yaquby is a renowned Shari'ah scholar and advisor
to numerous Islamic banks and companies, including Abu Dhabi
Islamic Bank, Islamic Investment Company of the Gulf, Bahrain
and the Arab Islamic Bank, Bahrain. He pursued traditional
Islamic studies in Mecca, India and Morocco under the guidance
of eminent Islamic scholars, including Shaykh Abdullah
Al-Farisi and Shaykh Muhammad Salah Al-Abbasi. He holds a B.A.
in Economics and Comparative Religion from McGill University,
Toronto. He is a Ph.D. candidate in Islamic Law at the
University of Wales. Shaykh Yaquby has published several books
on Islam law and is a frequent speaker at Islamic conferences.
Shaykh Dr. Mohamed Ali Dr. Mohamed Ali Elgari is the director of the Center for
Eligari, Saudi Arabia Research in Islamic Economics at King Abdulaziz University in
Jeddah. He is also a member of the OIC Fiqh Council. Dr.
Elgari serves as a consultant to Islamic banks and has served
on the consulting committee that counseled the Government of
Pakistan on the Islamization of its banking system. Dr. Elgari
holds a Ph.D. in Economics from the University of California.
Shaykh Yusuf Tala Shaykh Yusuf Talal DeLorenzo is currently a Shari'ah
DeLorenzo, United States consultant/advisor and translator/researcher for the
institution of Islamic Banking, London, and PCS Inc., Reston,
VA. He holds an M.A. in Islamic Studies from Jami'ah al Ulum al
Islamiyah (Karachi) and is a doctoral candidate at the
Hartford Seminary. Shaykh DeLorenzo produced the first
systematic academic translation in English of legal rulings
issued by Shari'ah advisory boards on the operations of
Islamic banks, entitled, A Compendium of Legal Rulings on
the Operations of Islamic Banks. He has also authored
original research in Islamic studies, including Islamic
banking and law, in English,Arabic and Urdu.
</TABLE>
Periodic Review
The Index is reviewed quarterly and annually by the Shari'ah
Supervisory Board and by Dow Jones for consideration of exclusion or inclusion
of components. In addition, the Index is reviewed on an on-going basis to
contemplate changes as a result of extraordinary events (e.g. delisting,
bankruptcy, merger, takeover, etc.).
EQUITY INVESTMENTS
Equity investments may or may not pay dividends and may or may not
carry voting rights. Common stock occupies the most junior position in a
company's capital structure. Convertible securities entitle the holder to
exchange the securities for a specified number of shares of common stock,
usually of the same company, at specified prices within a certain period of time
and to receive interest or dividends until the holder elects to convert. The
provisions of any convertible security determine its ranking in a company's
capital structure. In the case of subordinated convertible debentures, the
holder's claims on assets and earnings are subordinated to the claims of other
creditors, and are senior to the claims of preferred and common shareholders. In
the case of convertible preferred stock, the holder's claims on assets and
earnings are subordinated to the claims of all creditors and are senior to the
claims of common shareholders.
FOREIGN EXCHANGE CONTRACTS
Foreign exchange contracts are made with currency dealers, usually
large commercial banks and financial institutions. Although foreign exchange
rates are volatile, foreign exchange markets are generally liquid with the
equivalent of approximately $500 billion traded worldwide on a typical day.
<PAGE>
OTHER INVESTMENT TECHNIQUES
Cash is held for the Portfolio in demand deposit accounts with Brown
Brothers Harriman & Co. as the Portfolio's custodian bank (the "Custodian").
RESTRICTED SECURITIES
Securities that have legal or contractual restrictions on their resale
may be acquired for the Portfolio. The price paid for these securities, or
received upon resale, may be lower than the price paid or received for similar
securities with a more liquid market. Accordingly, the valuation of these
securities reflects any limitation on their liquidity. (See "Investment
Restrictions".)
WHEN-ISSUED AND DELAYED DELIVERY SECURITIES
Securities may be purchased for the Portfolio on a when-issued or
delayed delivery basis. For example, delivery and payment may take place a month
or more after the date of the transaction. The purchase price and the interest
rate payable on the securities, if any, are fixed on the transaction date. The
securities so purchased are subject to market fluctuation and no income accrues
to the Portfolio until delivery and payment take place. At the time the
commitment to purchase securities on a when-issued or delayed delivery basis is
made, the transaction is recorded and thereafter the value of such securities is
reflected each day in determining the Portfolio's net asset value. The Portfolio
maintains with the Custodian a separate account with a segregated portfolio of
securities in an amount at least equal to these commitments. At the time of its
acquisition, a when-issued or delayed delivery security may be valued at less
than the purchase price. Commitments for such when-issued or delayed delivery
securities are made only when there is an intention of actually acquiring the
securities. On delivery dates for such transactions, such obligations are met
from maturities or sales of securities and/or from cash flow. If the right to
acquire a when- issued or delayed delivery security is disposed of prior to its
acquisition, the Portfolio could, as with the disposition of any other portfolio
obligation, incur a gain or loss due to market fluctuation. When-issued or
delayed delivery commitments for the Portfolio may not be entered into if such
commitments exceed in the aggregate 15% of the market value of its total assets,
less liabilities other than the obligations created by when-issued or delayed
delivery commitments.
INVESTMENT COMPANY SECURITIES
Subject to applicable statutory and regulatory limitations, the assets
of the Portfolio may be invested in shares of other investment companies. Under
the 1940 Act, assets of the Portfolio may be invested in shares of other
investment companies in connection with a merger, consolidation, acquisition or
reorganization or if immediately after such investment (i) 10% or less of the
market value of the Portfolio's total assets could be so invested, (ii) 5% or
less of the market value of the Portfolio's total assets would be invested in
the shares of any one such company, and (iii) 3% or less of the total
outstanding voting stock of any other investment company would be owned by the
Portfolio. As a shareholder of another investment company, the Portfolio would
bear, along with other shareholders, its pro rata portion of the other
investment company's expenses, including advisory fees. These expenses would be
in addition to the advisory and other expenses that the Portfolio bears directly
in connection with its own operations.
INVESTMENT RESTRICTIONS
The Portfolio is operated under the following investment restrictions
which are deemed fundamental policies and may be changed only with the approval
of the holders of a "majority of the outstanding voting securities" as defined
in the Investment Company Act of 1940, as amended (the "1940 Act"), of the
Portfolio. As used in this Statement of Additional Information, the term
"majority of the outstanding voting securities" as defined in the 1940 Act
currently means the vote of (i) 67% or more of the voting securities present at
a meeting, if the holders of more than 50% of the outstanding voting securities
are present in person or represented by proxy; or (ii) more than 50% of the
outstanding voting securities, whichever is less.
The Portfolio may not:
(1) borrow money or mortgage or hypothecate its assets except that in
an amount not to exceed 1/3 of the current value of its net assets and in a
manner not to contravene Islamic Shari'ah principles, it may borrow money as a
temporary measure for extraordinary or emergency purposes, and except that it
may pledge, mortgage or hypothecate not more than 1/3 of such assets to secure
such borrowings (it is intended that money will be borrowed only from banks and
only either to accommodate requests for the redemption of Fund shares or the
withdrawal of part or all of the Fund's interest in the Portfolio, as the case
may be, while effecting an orderly liquidation of portfolio securities or to
maintain liquidity in the event of an unanticipated failure to complete a
portfolio security transaction or other similar situations), and except that
assets may be pledged to secure letters of credit solely for the purpose of
participating in a captive insurance company sponsored by the Investment Company
Institute;
(2) earn interest on its capital;
(3) purchase any security which is not included in the Dow Jones
Islamic Market Index (SM);
(4) hold uninvested cash in interest bearing deposits or invest such
uninvested cash in a manner that would not be in compliance with Shari'ah
principles;
(5) acquire the securities of one issuer if upon such purchase the
value of the Portfolio's holdings of such securities would exceed 10% of its net
assets;
(6) invest in fixed income investments;
(7) underwrite securities issued by other persons except insofar as it
may technically be deemed an underwriter under the Securities Act of 1933, as
amended (the "1933 Act") in selling a portfolio security;
(8) make loans to other persons except (a) through the lending of its
portfolio securities and provided that any such loans not exceed 30% of its net
assets (taken at market value), (b) through the use of repurchase agreements or
the purchase of short-term obligations and provided that not more than 10% of
its net assets is invested in repurchase agreements maturing in more than seven
days, or (c) by purchasing, subject to the limitation in paragraph (6) below, a
portion of an issue of debt securities of types commonly distributed privately
to financial institutions, for which purposes the purchase of short-term
commercial paper or a portion of an issue of debt securities which are part of
an issue to the public shall not be considered the making of a loan;
(9) purchase or sell real estate (including limited partnership
interests but excluding securities secured by real estate or interests therein),
interests in oil, gas or mineral leases, commodities or commodity contracts in
the ordinary course of business (the freedom of action to hold and to sell real
estate acquired as a result of the ownership of securities is reserved);
(10) concentrate its investments in any particular industry, but if it
is deemed appropriate for the achievement of its investment objective, up to 25%
of its assets, at market value at the time of each investment, may be invested
in any one industry;
(11) issue any senior security (as that term is defined in the 1940
Act) if such issuance is specifically prohibited by the 1940 Act or the rules
and regulations promulgated thereunder.
NON-FUNDAMENTAL RESTRICTIONS. The Portfolio may not as a matter of
operating policy: (i) purchase securities of any investment company if such
purchase at the time thereof would cause more than 10% of its total assets
(taken at the greater of cost or market value) to be invested in the securities
of such issuers or would cause more than 3% of the outstanding voting securities
of any such issuer to be held for it; (iii) knowingly invest in securities which
are subject to legal or contractual restrictions on resale if, as a result
thereof, more than 10% of its net assets (taken at market value) would be so
invested; (iv) enter into forward contracts and write, purchase or sell any put
or call option or any combination thereof, provided that this shall not prevent
the purchase, ownership, holding or sale of warrants where the grantor of the
warrants is the issuer of the underlying securities; purchase any security or
evidence of interest therein on margin; or (v) make short sales of securities or
maintain a short position, unless at all times when a short position is open it
owns an equal amount of such securities or securities convertible into or
exchangeable, without payment of any further consideration, for securities of
the same issue as, and equal in amount to, the securities sold short, and unless
not more than 10% of its net assets (taken at market value) is represented by
such securities, or securities convertible into or exchangeable for such
securities, at any one time (it is the present intention of management to make
such sales only for the purpose of deferring realization of gain or loss for
federal income tax purposes; such sales would not be made of securities subject
to outstanding options).
These policies are not fundamental and may be changed without investor
approval.
PERCENTAGE RESTRICTIONS. If a percentage restriction on investment or
utilization of assets set forth above or referred to in Part A is adhered to at
the time an investment is made or assets are so utilized, a later change in
percentage resulting from changes in the value of the portfolio securities of a
portfolio security is not considered a violation of policy. If investment
restrictions relating to any particular investment practice or policy are
inconsistent between the Portfolio and an investor, the Portfolio will adhere to
the more restrictive limitation.
TRUSTEES AND OFFICERS
---------------------------------------------------------------
The Fund's Trustees, in addition to supervising the actions of the
Fund's Administrator and Distributor, as set forth below, decide upon matters of
general policy with respect to the Fund. The Portfolio's Trustees, in addition
to supervising the actions of the Portfolio's Investment Adviser and
Administrator, as set forth below, decide upon matters of general policy with
respect to the Portfolio.
Because of the services rendered to the Portfolio by the Investment
Adviser and to the Fund and the Portfolio by their respective Administrators,
the Fund and the Portfolio require no employees, and their respective officers,
other than the Chairman, receive no compensation from the Fund or the Portfolio.
The Trustees of the Fund and the Portfolio receive no compensation for
their services.
The Trustees of the Fund and the Portfolio and executive officers of
the Fund and the Portfolio, their principal occupations during the past five
years (although their titles may have varied during the period) and business
addresses are:
TRUSTEES OF THE FUND AND THE PORTFOLIO
[INFORMATION TO BE INSERTED FOR FUND TRUSTEES]
RICHARD L. CARPENTER** - Trustee of the Portfolio (since March 1999);
Director and Trustee of The 59 Wall Street Trust and The 59 Wall Street Fund,
Inc. (since October 1999); Trustee of BBH U.S. Money Market Portfolio, BBH U.S.
Equity Portfolio, BBH International Equity Portfolio, BBH European Equity
Portfolio, BBH Pacific Basin Equity Portfolio, BBH High Yield Fixed Income
Portfolio, BBH Broad Market Fixed Income Portfolio and BBH Global Equity
Portfolio; Retired; Director of Investments, Pennsylvania Public School
Employees' Retirement System (prior to December 1997). His business address is
12664 Lazy Acres Court, Nevada City, CA 95959.
CLIFFORD A. CLARK** - Trustee of the Portfolio (since March 1999);
Director and Trustee of The 59 Wall Street Trust and The 59 Wall Street Fund,
Inc. (since October 1999); Trustee of BBH U.S. Money Market Portfolio, BBH U.S.
Equity Portfolio, BBH International Equity Portfolio, BBH European Equity
Portfolio, BBH Pacific Basin Equity Portfolio, BBH High Yield Fixed Income
Portfolio, BBH Broad Market Fixed Income Portfolio and BBH Global Equity
Portfolio; Retired. His business address is 42 Clowes Drive, Falmouth, MA 02540.
J. ANGUS IVORY - Trustee of the Portfolio (since March 1999); Director
and Trustee of The 59 Wall Street Trust and The 59 Wall Street Fund, Inc. (since
October 1999); Trustee of BBH U.S. Money Market Portfolio, BBH U.S. Equity
Portfolio, BBH International Equity Portfolio, BBH European Equity Portfolio,
BBH Pacific Basin Equity Portfolio, BBH High Yield Fixed Income Portfolio, BBH
Broad Market Fixed Income Portfolio and BBH Global Equity Portfolio (since
October 1999); Retired; Director of Brown Brothers Harriman Ltd., subsidiary of
Brown Brothers Harriman & Co.; Director of Old Daily Saddlery; Advisor, RAF
Central Fund; Committee Member, St. Thomas Hospital Pain Clinic (since 1999).
OFFICERS OF THE FUND AND THE PORTFOLIO
PHILIP W. COOLIDGE - President; Chief Executive Officer and President
of Signature Financial Group, Inc. ("SFG"), Signature Broker-Dealer Services,
Inc. ("Signature Broker-Dealer Services") and 59 Wall Street Administrators,
Inc. ("59 Wall Street Administrators").
MOLLY S. MUGLER - Secretary; Legal Counsel and Secretary of SFG; and
Secretary of Signature Broker-Dealer Services and 59 Wall Street Administrators.
LINWOOD C. DOWNS - Treasurer; Senior Vice President and Treasurer of
SFG
SUSAN JAKUBOSKI - Assistant Treasurer; Assistant Treasurer and
Assistant Secretary of the Portfolio; Assistant Secretary, Assistant Treasurer
and Vice President of Signature Financial Group (Cayman) Limited.
CHRISTINE D. DORSEY - Assistant Secretary; Vice President of SFG (since
January 1996); Paralegal and Compliance Officer, various financial companies
(July 1992 to January 1996).
-------------------------
Each officer and Trustee of the Portfolio listed above holds the
equivalent position with The 59 Wall Street Trust, The 59 Wall Street Fund, Inc.
and each of BBH U.S. Money Market Portfolio, BBH U.S. Equity Portfolio, BBH
International Equity Portfolio, BBH European Equity Portfolio and BBH Pacific
Basin Equity Portfolio, BBH High Yield Fixed Income Portfolio, BBH Broad Market
Fixed Income Portfolio, BBH Global Equity Portfolio and the Portfolio. The
address of each officer of the Fund and the Portfolio is 21 Milk Street, Boston,
Massachusetts 02109. Messrs. Coolidge and Downs, and Mss. Jakuboski, Mugler and
Dorsey also hold similar positions with other investment companies for which
affiliates of Signature Broker-Dealer Services serve as the principal
underwriter.
By virtue of the responsibilities assumed by Brown Brothers Harriman &
Co. under the Investment Management Agreement with the Portfolio and the
Administration Agreement with the Fund, and by Brown Brothers Harriman Trust
Company under the Administration Agreement with the Portfolio (see "Investment
Adviser" and "Administrators"), neither the Fund nor the Portfolio requires
employees other than its officers, and none of its officers devote full time to
the affairs of the Fund or the Portfolio, as the case may be, or, other than the
Chairman, receives any compensation from the Fund or the Portfolio.
As of [ ], 2000, the Trustees and officers of the Fund and the
Portfolio as a group owned less than 1% of the outstanding shares of the Fund
and less than 1% of the aggregate beneficial interests in the Portfolio.
<PAGE>
INVESTMENT ADVISER
---------------------------------------------------------------
Under the Investment Management Agreement with the Portfolio, subject to the
general supervision of the Portfolio's Trustees and in conformance with the
stated policies of the Portfolio, Brown Brothers Harriman & Co. (the "Investment
Manager") provides investment management services to the Portfolio. The
Investment Manager will make all investment decisions for the Portfolio based
upon the advice given by Wafra Investment Advisory Group, Inc. (the "Investment
Adviser") but subject to the overall direction and control of the Trustees of
the Portfolio.
The investment management services of Brown Brothers Harriman & Co. to
the Portfolio are not exclusive under the terms of the Investment Management
Agreement. Brown Brothers Harriman & Co. is free to and does render investment
management services to others, including other registered investment companies.
The Investment Management Agreement between Brown Brothers Harriman &
Co. and the Portfolio is dated March 5, 1999 and remains in effect for two years
from such date and thereafter, but only as long as the agreement is specifically
approved at least (see "Investment Adviser") annually (i) by a vote of the
holders of a "majority of the outstanding voting securities as defined in the
1940 Act" of the Portfolio, or by the Portfolio's Trustees, and (ii) by a vote
of a majority of the Trustees of the Portfolio who are not parties to the
Investment Advisory Agreement or "interested persons" (as defined in the 1940
Act) of the Portfolio ("Independent Trustees"), cast in person at a meeting
called for the purpose of voting on such approval. The Investment Management
Agreement was most recently approved by the Independent Trustees on August 10,
1999. The Investment Management Agreement terminates automatically if assigned
and is terminable at any time without penalty by a vote of a majority of the
Trustees of the Portfolio or by a vote of the holders of a "majority of the
outstanding voting securities as defined in the 1940 Act" of the Portfolio on
three months' written notice to Brown Brothers Harriman & Co. and by Brown
Brothers Harriman & Co. on three months' written notice to the Portfolio.
The Glass-Steagall Act prohibits certain financial institutions from
engaging in the business of underwriting, selling or distributing securities and
from sponsoring, organizing or controlling a registered open-end investment
company continuously engaged in the issuance of its shares. There is presently
no controlling precedent prohibiting financial institutions such as Brown
Brothers Harriman & Co. from performing investment management or administrative
functions. If Brown Brothers Harriman & Co. were to terminate its Investment
Management Agreement with the Portfolio, or were prohibited from acting in such
capacity, it is expected that the Trustees of the Portfolio would recommend to
the investors that they approve a new investment manager agreement for the
Portfolio with another qualified manager.
Under its Investment Advisory Agreement with the Portfolio, subject to
the general supervision of the Portfolio's Trustees and in conformance with the
stated policies of the Portfolio, Wafra Investment Advisory Group, Inc. (the
"Investment Adviser") provides investment advisory services to the Portfolio.
The investment advisory services of the Investment Adviser to the
Portfolio are not exclusive under the terms of the Investment Advisory
Agreement. The Investment Adviser is free to and does render investment advisory
services to others, including other registered investment companies.
The Investment Advisory Agreement between Wafra Investment Advisory
Group, Inc. and the Portfolio is dated March 5, 1999 and remains in effect for
two years from such date and thereafter, but only as long as the agreement is
specifically approved at least annually in the same manner as the Investment
Management Agreement. The Investment Advisory Agreement was most recently
approved by the Independent Trustees on August 10, 1999. The Investment Advisory
Agreement terminates automatically if assigned and is terminable at any time
without penalty by a vote of a majority of the Trustees of the Portfolio or by a
vote of the holders of a "majority of the outstanding voting securities as
defined in the 1940 Act" of the Portfolio on 60 days' written notice to Brown
Brothers Harriman & Co. and by Brown Brothers Harriman & Co. on 90 days' written
notice to the Portfolio.
ADMINISTRATORS
---------------------------------------------------------------
Brown Brothers Harriman & Co. acts as Administrator of the Fund and
Brown Brothers Harriman Trust Company acts as Administrator of the Portfolio.
Brown Brothers Harriman Trust Company is a wholly-owned subsidiary of Brown
Brothers Harriman & Co.
In its capacity as Administrator of the Fund, Brown Brothers Harriman & Co.
administers all aspects of the Fund's operations subject to the supervision of
the Fund's Trustees except as set forth below under "Distributor". In connection
with its responsibilities as Administrator and at its own expense, Brown
Brothers Harriman & Co. (i) provides the Fund with the services of persons
competent to perform such supervisory, administrative and clerical functions as
are necessary in order to provide effective administration of the Fund,
including the maintenance of certain books and records; (ii) oversees the
performance of administrative and professional services to the Fund by others,
including the Fund's Transfer and Dividend Disbursing Agent; (iii) provides the
Fund with adequate office space and communications and other facilities; and
(iv) prepares and/or arranges for the preparation, but does not pay for, the
periodic updating of the Fund's registration statement and prospectus, the
printing of such documents for the purpose of filings with the Securities and
Exchange Commission and state securities administrators, and the preparation of
tax returns for the Fund and reports to shareholders and the Securities and
Exchange Commission.
Brown Brothers Harriman Trust Company, in its capacity as Administrator of
the Portfolio, administers all aspects of the Portfolio's operations subject to
the supervision of the Portfolio's Trustees except as set forth above under
"Investment Adviser". In connection with its responsibilities as Administrator
for the Portfolio and at its own expense, Brown Brothers Harriman Trust Company
(i) provides the Portfolio with the services of persons competent to perform
such supervisory, administrative and clerical functions as are necessary in
order to provide effective administration of the Portfolio, including the
maintenance of certain books and records, receiving and processing requests for
increases and decreases in the beneficial interests in the Portfolio,
notification to the Investment Adviser of available funds for investment,
reconciliation of account information and balances between the Custodian and the
Investment Adviser, and processing, investigating and responding to investor
inquiries; (ii) oversees the performance of administrative and professional
services to the Portfolio by others, including the Custodian; (iii) provides the
Portfolio with adequate office space and communications and other facilities;
and (iv) prepares and/or arranges for the preparation, but does not pay for, the
periodic updating of the Portfolio's registration statement for filing with the
Securities and Exchange Commission, and the preparation of tax returns for the
Portfolio and reports to investors and the Securities and Exchange Commission.
The Administration Agreement between the Fund and Brown Brothers Harriman &
Co. (dated [ ] [ ], 2000) will remain in effect for two years from such date and
thereafter, but only so long as such agreement is specifically approved at least
annually in the same manner as the Portfolio's Investment Advisory Agreement
(see "Investment Adviser"). The Administration Agreement between the Portfolio
and Brown Brothers Harriman Trust Company (dated March 5, 1999) shall remain in
effect for successive annual periods, but only so long as such agreement is
specifically approved at least annually in the same manner as the Portfolio's
Investment Advisory Agreement (see "Investment Adviser"). The Independent
Trustees most recently approved the Fund's Administration Agreement on [ ], 2000
and the Portfolio's Administration Agreement on August 10, 1999. Each agreement
will terminate automatically if assigned by either party thereto and is
terminable by the Fund or the Portfolio at any time without penalty by a vote of
a majority of the Trustees of the Fund or the Portfolio, as the case may be, or
by a vote of the holders of a "majority of the outstanding voting securities"
(as defined in the 1940 Act) of the Fund or the Portfolio, as the case may be
(see "Additional Information"). The Fund's Administration Agreement is
terminable by the Trustees of the Fund or shareholders of the Fund on 60 days'
written notice to Brown Brothers Harriman & Co. The Portfolio's Administration
Agreement is terminable by the Trustees of the Portfolio or by the Fund and
other investors in the Portfolio on 60 days' written notice to Brown Brothers
Harriman Trust Company. Each agreement is terminable by the respective
Administrator on 90 days' written notice to the Fund or the Portfolio, as the
case may be.
The administrative fee payable to Brown Brothers Harriman & Co. from
the Fund is calculated daily and payable monthly at an annual rate equal to [ ]%
of the Fund's average daily net assets.
For the services rendered to the Portfolio and related expenses borne
by Brown Brothers Harriman Trust Company as Administrator of the Portfolio,
Brown Brothers Harriman Trust Company receives from the Portfolio a fee,
computed daily and paid monthly, at an annual rate equal to 0.05% of the average
daily net assets of the Portfolio that are not in excess of $50 million and at
an annual rate equal to 0.01% of the average daily net assets of the Portfolio
in excess of $50 million. The Administrator shall receive a minimum annual fee
from the Portfolio equal to $20,000.
Pursuant to a Subadministrative Services Agreement with Brown Brothers
Harriman & Co., 59 Wall Street Administrators performs such subadministrative
duties for the Fund as are from time to time agreed upon by the parties. The
offices of 59 Wall Street Administrators are located at 21 Milk Street, Boston,
Massachusetts 02109. 59 Wall Street Administrators is a wholly-owned subsidiary
of Signature Financial Group, Inc. ("SFG"). SFG is not affiliated with Brown
Brothers Harriman & Co. 59 Wall Street Administrators' subadministrative duties
may include providing equipment and clerical personnel necessary for maintaining
the organization of the Fund, participation in the preparation of documents
required for compliance by the Fund with applicable laws and regulations,
preparation of certain documents in connection with meetings of Trustees and
shareholders of the Fund, and other functions that would otherwise be performed
by the Administrator as set forth above. For performing such subadministrative
services, 59 Wall Street Administrators receives such compensation from the Fund
as is from time to time agreed upon, but not in excess of the amount paid to the
Administrator from the Fund.
Pursuant to a Subadministrative Services Agreement with Brown Brothers
Harriman Trust Company, 59 Wall Street Administrators performs such
subadministrative duties for the Portfolio as are from time to time agreed upon
by the parties. The offices of 59 Wall Street Administrators are located at 21
Milk Street, Boston, MA 02109. 59 Wall Street Administrators is a wholly-owned
subsidiary of SFG. 59 Wall Street Administrators' subadministrative duties may
include providing equipment and clerical personnel necessary for maintaining the
organization of the Portfolio, participation in the preparation of documents
required for compliance by the Portfolio with applicable laws and regulations,
preparation of certain documents in connection with meetings of Trustees of and
investors in the Portfolio, and other functions that would otherwise be
performed by the Administrator of the Portfolio as set forth above. For
performing such subadministrative services, 59 Wall Street Administrators
receives such compensation from the Portfolio as is from time to time agreed
upon, but not in excess of the amount paid to the Administrator from the
Portfolio.
DISTRIBUTOR ---------------------------------------------------------------
Signature Broker-Dealer Services, Inc. acts as exclusive Distributor of
shares of the Fund. Its office is located at 21 Milk Street, Boston,
Massachusetts 02109. Signature Broker-Dealer Services is a wholly-owned
subsidiary of SFG. SFG and its affiliates currently provide administration and
distribution services for other registered investment companies. The Fund pays
for the preparation, printing and filing of copies of the Fund's registration
statement and prospectus as required under federal and state securities laws.
The Distribution Agreement (dated [ ] [ ], 2000) between the Fund and
Signature Broker-Dealer Services remains in effect indefinitely, but only so
long as such agreement is specifically approved at least annually in the same
manner as the Portfolio's Investment Advisory Agreement (see "Investment
Adviser"). The Distribution Agreement was most recently approved by the
Independent Trustees of the Fund on [ ] [ ], 2000. The agreement terminates
automatically if assigned by either party thereto and is terminable with respect
to the Fund at any time without penalty by a vote of a majority of the Trustees
of the Fund or by a vote of the holders of a "majority of the outstanding voting
securities" (as defined in the 1940 Act) of the Fund (see "Additional
Information"). The Distribution Agreement is terminable with respect to the Fund
by the Fund's Trustees or shareholders of the Fund on 60 days' written notice to
Signature Broker-Dealer Services. The agreement is terminable by Signature
Broker-Dealer Services on 90 days' written notice to the Fund. Signature
Broker-Dealer Services holds itself available to receive purchase orders for
Fund shares.
DISTRIBUTION AND SHAREHOLDER SERVICING
---------------------------------------------------------------
The Fund intends to enter into distribution agreements or shareholder
servicing agreements ("Agreements") with certain financial institutions
("Financial Intermediaries") to perform certain distribution, shareholder
servicing, administrative and accounting services for their customers
("Customers") who are beneficial owners of shares of the Fund.
A Financial Intermediary may charge a Customer one or more of the
following types of fees, as agreed upon by the Financial Intermediary and the
Customer, with respect to the cash management or other services provided by the
Financial Intermediary: (1) account fees (a fixed amount per month or per year;
(2) transaction fees (a fixed amount per transaction processed); (3)
compensating balance requirements (a minimum dollar amount a Customer must
maintain in order to obtain the services offered); or (4) account maintenance
fees (a periodic charge based upon the percentage of assets in the account or of
the dividend paid on those assets). A Customer of a Financial Intermediary
should read the Prospectus and SAI in conjunction with the service agreement and
other literature describing the services and related fees that will be provided
by the Financial Intermediary to its Customers prior to any purchase of shares.
No preference will be shown in the selection of portfolio investments for the
instruments of Financial Intermediaries.
Any distribution or shareholder servicing agreements will be governed
by a Distribution Plan or a Shareholder Services Plan (the "Plans"). The Plans
require that the Board of Trustees receive, at least quarterly, written reports
of amounts expended under the Plans and the purpose for which such expenditures
were made. A Plan will continue in effect for so long as its continuance is
specifically approved at least annually by the Board of Trustees, including a
majority of the Trustees who are not interested persons of the Trust and who
have no direct or indirect financial interest in the operation of the Plan. Any
material amendment of the Plans would require the approval of the Trustees in
the manner described above. A Plan may be terminated at any time, without
penalty, by vote of a majority of the Trustees or by a vote of a majority of the
outstanding voting shares of the Trust that have invested pursuant to the Plan.
The Manager and Administrator may also pay for distribution related costs out of
their revenues.
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT
---------------------------------------------------------------
Brown Brothers Harriman & Co. (the "Custodian"), 40 Water Street,
Boston, Massachusetts 02109, is Custodian for the Fund and the Portfolio.
As Custodian for the Fund, it is responsible for holding the Fund's assets
(i.e., cash and the Fund's interest in the Portfolio) pursuant to a custodian
agreement with the Fund. Cash is held for the Fund in demand deposit accounts at
the Custodian. Subject to the supervision of the Administrator of the Fund, the
Custodian maintains the accounting records for the Fund and each day computes
the net asset value per share of the Fund.
As Custodian for the Portfolio, it is responsible for maintaining books
and records of portfolio transactions and holding the Portfolio's securities and
cash pursuant to a custodian agreement with the Portfolio. Cash is held for the
Portfolio in demand deposit accounts at the Custodian. Subject to the
supervision of the Administrator of the Portfolio, the Custodian maintains the
accounting and portfolio transaction records for the Portfolio and each day
computes the net asset value and net income of the Portfolio.
Forum Shareholder Services, Inc., Two Portland Square, Portland, ME 04101
is the Transfer and Dividend Disbursing Agent for the Fund. As Transfer and
Dividend Disbursing Agent, it is responsible for maintaining the books and
records detailing the ownership of the Fund's shares.
INDEPENDENT AUDITORS
---------------------------------------------------------------
Deloitte & Touche LLP, Boston, Massachusetts are the independent
auditors for the Fund and the Portfolio.
CODE OF ETHICS
---------------------------------------------------------------
The Fund, the Portfolio, the Adviser and the Distributor each have adopted a
code of ethics pursuant to Rule 17j-1 under the 1940 Act. Each code of ethics
permits personnel subject to such code of ethics to invest in securities,
including securities that may be purchased or held by the Portfolio. However,
the codes of ethics contain provisions and requirements designed to identify and
address certain conflicts of interest between personal investment activities and
the interests of the Portfolio. Of course, there can be no assurance that the
codes of ethics will be effective in identifying and addressing all conflicts of
interest relating to personal securities transactions. The code of ethics of the
Fund, the Portfolio, the Adviser and the Placement Agent are on file with and
are available from the SEC.
NET ASSET VALUE; REDEMPTION IN KIND
---------------------------------------------------------------
The net asset value of the Fund's shares is determined each day the New
York Stock Exchange is open for regular trading. (As of the date of this
Statement of Additional Information, such Exchange is so open every weekday
except for the following holidays: New Year's Day, Martin Luther King, Jr. Day,
Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas.) This determination of net asset value of each
share of the Fund is made once during each such day as of the close of regular
trading on such Exchange by subtracting from the value of the Fund's total
assets (i.e., the value of its investment in the Portfolio and other assets) the
amount of its liabilities, including expenses payable or accrued, and dividing
the difference by the number of shares of the Fund outstanding at the time the
determination is made.
The value of the Portfolio's net assets (i.e., the value of its
securities and other assets less its liabilities, including expenses payable or
accrued) is determined at the same time and on the same days as the net asset
value per share of the Fund is determined. The value of the Fund's investment in
the Portfolio is determined by multiplying the value of the Portfolio's net
assets by the percentage, effective for that day, which represents the Fund's
share of the aggregate beneficial interests in the Portfolio. The value of the
Fund's investment in the Portfolio is determined once daily at 4:00 P.M., New
York time on each day the New York Stock Exchange is open for regular trading.
The value of investments listed on a domestic securities exchange is
based on the last sale prices as of the regular close of the New York Stock
Exchange (which is currently 4:00 p.m., New York time) or, in the absence of
recorded sales, at the average of readily available closing bid and asked prices
on such Exchange.
Unlisted securities are valued at the average of the quoted bid and
asked prices in the over-the-counter market. The value of each security for
which readily available market quotations exist is based on a decision as to the
broadest and most representative market for such security.
Securities or other assets for which market quotations are not readily
available are valued at fair value in accordance with procedures established by
and under the general supervision and responsibility of the Portfolio's
Trustees. Such procedures include the use of independent pricing services, which
use prices based upon yields or prices of securities of comparable quality,
coupon, maturity and type; indications as to values from dealers; and general
market conditions. Short-term investments which mature in 60 days or less are
valued at amortized cost if their original maturity was 60 days or less, or by
amortizing their value on the 61st day prior to maturity, if their original
maturity when acquired was more than 60 days, unless this is determined not to
represent fair value by the Trustees of the Portfolio.
Subject to the Fund's compliance with applicable regulations, the Fund
has reserved the right to pay the redemption price of shares of the Fund, either
totally or partially, by a distribution in kind of portfolio securities (instead
of cash). The securities so distributed would be valued at the same amount as
that assigned to them in calculating the net asset value for the shares being
sold. If a shareholder received a distribution in kind, the shareholder could
incur brokerage or other charges in converting the securities to cash. The Fund
has elected, however, to be governed by Rule 18f-1 under the 1940 Act, as a
result of which the Fund is obligated with respect to any one investor during
any 90 day period to redeem shares of the Fund solely in cash up to the lesser
of $250,000 or 1% of the Fund's net assets at the beginning of such 90 day
period.
COMPUTATION OF PERFORMANCE
---------------------------------------------------------------
The average annual total rate of return of the Fund is calculated for
any period by (a) dividing (i) the sum of the aggregate net asset value per
share on the last day of the period of shares purchased with a $1,000 payment on
the first day of the period and the aggregate net asset value per share on the
last day of the period of shares purchasable with dividends and capital gains
distributions declared during such period with respect to shares purchased on
the first day of such period and with respect to shares purchased with such
dividends and capital gains distributions, by (ii) $1,000, (b) raising the
quotient to a power equal to 1 divided by the number of years in the period, and
(c) subtracting 1 from the result.
The total rate of return of the Fund for any specified period is
calculated by (a) dividing (i) the sum of the aggregate net asset value per
share on the last day of the period of shares purchased with a $1,000 payment on
the first day of the period and the aggregate net asset value per share on the
last day of the period of shares purchasable with dividends and capital gains
distributions declared during such period with respect to shares purchased on
the first day of such period and with respect to shares purchased with such
dividends and capital gains distributions, by (ii) $1,000, and (b) subtracting 1
from the result.
Performance calculations should not be considered a representation of
the average annual or total rate of return of the Fund in the future since the
rates of return are not fixed. Actual total rates of return and average annual
rates of return depend on changes in the market value of, and dividends and
interest received from, the investments held by the Portfolio and the Fund's and
the Portfolio's expenses during the period.
Total and average annual rate of return information may be useful for
reviewing the performance of the Fund and for providing a basis for comparison
with other investment alternatives. However, unlike bank deposits or other
investments which pay a fixed yield for a stated period of time, the Fund's
total rate of return fluctuates, and this should be considered when reviewing
performance or making comparisons.
The Fund's performance may be used from time to time in shareholder
reports or other communications to shareholders or prospective investors.
Performance figures are based on historical earnings and are not intended to
indicate future performance. Performance information may include the Fund's
investment results and/or comparisons of its investment results to various
unmanaged indexes (such as the Standard & Poor's 500 Index and the Dow Jones
Islamic Market Index) and to investments for which reliable performance data is
available. Performance information may also include comparisons to averages,
performance rankings or other information prepared by recognized mutual fund
statistical services. To the extent that unmanaged indexes are so included, the
same indexes are used on a consistent basis. The Fund's investment results as
used in such communications are calculated on a total rate of return basis in
the manner set forth below.
Period and average annualized "total rates of return" may be provided
in such communications. The "total rate of return" refers to the change in the
value of an investment in The Fund over a stated period based on any change in
net asset value per share and including the value of any shares purchasable with
any dividends or capital gains distributions during such period. Period total
rates of return may be annualized. An annualized total rate of return is a
compounded total rate of return which assumes that the period total rate of
return is generated over a one year period, and that all dividends and capital
gains distributions are reinvested. An annualized total rate of return is
slightly higher than a period total rate of return if the period is shorter than
one year, because of the assumed investment.
Historical total return information for any period or portion thereof prior
to the establishment of the Fund will be that of the Portfolio, adjusted to
assume that all charges, expenses and fees of the Fund and the Portfolio which
are presently in effect were deducted during such periods, as permitted by
applicable SEC staff interpretations.
PURCHASES AND REDEMPTIONS
---------------------------------------------------------------
A confirmation of each purchase and redemption transaction is issued on
execution of that transaction. A shareholder's right to receive payment
with respect to any redemption may be suspended or the payment of
the redemption proceeds postponed: (i) during periods when the New York Stock
Exchange is closed for other than weekends and holidays or when regular trading
on such Exchange is restricted as determined by the Securities and Exchange
Commission by rule or regulation, (ii) during periods in which an emergency
exists which causes disposal of, or evaluation of the net asset value of, the
Fund's portfolio securities to be unreasonable or impracticable, or (iii) for
such other periods as the Securities and Exchange Commission may permit.
An investor should be aware that redemptions from the Fund may not be
processed if a completed account application with a certified taxpayer
identification number has not been received.
In the event a shareholder redeems all shares held in the Fund, future
purchases of shares of the Fund by such shareholder would be subject to the
Fund's minimum initial purchase requirements.
The value of shares redeemed may be more or less than the shareholder's
cost depending on Fund performance during the period the shareholder owned such
shares.
The Fund reserves the rights to discontinue, alter or limit the
automatic reinvestment privilege at any time, but will provide shareholders
prior written notice of any such discontinuance, alteration or limitation.
FEDERAL TAXES
---------------------------------------------------------------
Each year, the Fund intends to continue to qualify and elect that it be
treated as a separate "regulated investment company" under the Internal Revenue
Code of 1986, as amended (the "Code"). Accordingly, the Fund is not subject to
federal income taxes on its net income and realized net long-term capital gains
in excess of short-term capital losses that are distributed to its shareholders.
A 4% non-deductible excise tax is imposed on the Fund to the extent that certain
distribution requirements for the Fund for each calendar year are not met. The
Fund intends to continue to meet such requirements. The Portfolio is also not
required to pay any federal income or excise taxes. Under Subchapter M of the
Code the Fund is not subject to federal income taxes on amounts distributed to
shareholders.
Qualification as a regulated investment company under the Code
requires, among other things, that (a) at least 90% of the Fund's annual gross
income, without offset for losses from the sale or other disposition of
securities, be derived from interest, payments with respect to securities loans,
dividends and gains from the sale or other disposition of securities or other
income derived with respect to its business of investing in such securities; (b)
less than 30% of the Fund's annual gross income be derived from gains (without
offset for losses) from the sale or other disposition of securities held for
less than three months; and (c) the holdings of the Fund be diversified so that,
at the end of each quarter of its fiscal year, (i) at least 50% of the market
value of the Fund's assets be represented by cash, U.S. Government securities
and other securities limited in respect of any one issuer to an amount not
greater than 5% of the Fund's assets and 10% of the outstanding voting
securities of such issuer, and (ii) not more than 25% of the value of the Fund's
assets be invested in the securities of any one issuer (other than U.S.
Government securities and securities of other investment companies). In
addition, in order not to be subject to federal income tax, at least 90% of the
Fund's net investment income and net short-term capital gains earned in each
year must be distributed to the Fund's shareholders.
Dividends paid from the Fund may be eligible for the dividends-received
deduction allowed to corporate shareholders because all or a portion of the
Portfolio's net income may consist of dividends paid by domestic corporations.
Gains or losses on sales of securities are treated as long-term capital
gains or losses if the securities have been held for more than one year except
in certain cases where a put has been acquired or a call has been written
thereon. Other gains or losses on the sale of securities are treated as
short-term capital gains or losses. Gains and losses on the sale, lapse or other
termination of options on securities are generally treated as gains and losses
from the sale of securities. If an option written for the Portfolio lapses or is
terminated through a closing transaction, such as a repurchase of the option
from its holder, the Portfolio may realize a short-term capital gain or loss,
depending on whether the premium income is greater or less than the amount paid
in the closing transaction. If securities are sold pursuant to the exercise of a
call option written for them, the premium received would be added to the sale
price of the securities delivered in determining the amount of gain or loss on
the sale. The requirement that less than 30% of the Fund's gross income be
derived from gains from the sale of securities held for less than three months
may limit the Portfolio's ability to write options and engage in transactions
involving stock index futures.
Certain options contracts held for the Portfolio at the end of each fiscal
year are required to be "marked to market" for federal income tax purposes; that
is, treated as having been sold at market value. Sixty percent of any gain or
loss recognized on these deemed sales and on actual dispositions are treated as
long-term capital gain or loss, and the remainder are treated as short-term
capital gain or loss regardless of how long the Portfolio has held such options.
The Portfolio may be required to defer the recognition of losses on stock or
securities to the extent of any unrecognized gain on offsetting positions held
for it.
Return of Capital. Any dividend or capital gains distribution has the
effect of reducing the net asset value of Fund shares held by a shareholder by
the same amount as the dividend or capital gains distribution. If the net asset
value of shares is reduced below a shareholder's cost as a result of a dividend
or capital gains distribution from the Fund, such dividend or capital gains
distribution would be taxable even though it represents a return of invested
capital.
Redemption of Shares. Any gain or loss realized on the redemption of Fund
shares by a shareholder who is not a dealer in securities is treated as
long-term capital gain or loss if the shares have been held for more than one
year, and otherwise as short-term capital gain or loss. However, any loss
realized by a shareholder upon the redemption of Fund shares held one year or
less is treated as a long-term capital loss to the extent of any long-term
capital gains distributions received by the shareholder with respect to such
shares. Additionally, any loss realized on a redemption or exchange of Fund
shares is disallowed to the extent the shares disposed of are replaced within a
period of 61 days beginning 30 days before such disposition, such as pursuant to
reinvestment of a dividend or capital gains distribution in Fund shares.
Other Taxes. The Fund may be subject to state or local taxes in
jurisdictions in which it is deemed to be doing business. In addition, the
treatment of the Fund and its shareholders in those states which have income tax
laws might differ from treatment under federal income tax laws. Distributions to
shareholders may be subject to additional state and local taxes. Shareholders
should consult their own tax advisors with respect to any state or local taxes.
Other Information. Annual notification as to the tax status of capital
gains distributions, if any, is provided to shareholders shortly after December
31, the end of the Fund's fiscal year. Additional tax information is mailed to
shareholders in January. Under U.S. Treasury regulations, the Fund is required
to withhold and remit to the U.S. Treasury a portion (31%) of dividends and
capital gains distributions on the accounts of those shareholders who fail to
provide a correct taxpayer identification number (Social Security Number for
individuals) or to make required certifications, or who have been notified by
the Internal Revenue Service that they are subject to such withholdings.
Prospective investors should submit an IRS Form W-9 to avoid such withholding.
This tax discussion is based on the tax laws and regulations in effect
on the date of this Prospectus, however such laws and regulations are subject to
change. Shareholders and prospective investors are urged to consult their tax
advisors regarding specific questions relevant to their particular
circumstances.
DESCRIPTION OF SHARES
---------------------------------------------------------------
The Fund is an open-end management investment company organized as a
Massachusetts business trust on August 31, 2000. Its offices are located at 21
Milk Street, Boston, Massachusetts 02109; its telephone number is (617)
423-0800.
The Fund's Declaration of Trust permits the Fund's Board of Trustees to
issue an unlimited number of full and fractional shares of beneficial interest
and to divide or combine the shares into a greater or lesser number of shares
without thereby changing the proportionate beneficial interests in the Fund.
Each share represents an equal proportionate interest in the Fund with each
other share. Upon liquidation or dissolution of the Fund, the Fund's
shareholders are entitled to share pro rata in the Fund's net assets available
for distribution to its shareholders. The Fund reserves the right to create and
issue a number of series of shares, in which case the shares of each series
would participate equally in the earnings, dividends and assets of the
particular series (except for any differences among classes of shares of a
series). Shares of each series would be entitled to vote separately to approve
advisory agreements or changes in investment policy, but shares of all series
may vote together in the election or selection of the Trustees, principal
underwriters and auditors for the Fund. Upon liquidation or dissolution of the
Fund, the shareholders of each series would be entitled to share pro rata in the
net assets of their respective series available for distribution to
shareholders.
Shareholders of the Fund are entitled to one full vote for each full
share held and to a fractional vote for fractional shares. Shareholders in the
Fund do not have cumulative voting rights, and shareholders owning more than 50%
of the outstanding shares of the Fund may elect all of the Trustees of the Fund
if they choose to do so and in such event the other shareholders in the Fund
would not be able to elect any Trustee. The Fund is not required and has no
current intention to hold meetings of shareholders annually but the Fund will
hold special meetings of shareholders when in the judgment of the Fund's
Trustees it is necessary or desirable to submit matters for a shareholder vote
as may be required by the 1940 Act or as may be permitted by the Articles of
Incorporation or By-laws. Shareholders have under certain circumstances (e.g.,
upon application and submission of certain specified documents to the Trustees
by a specified number of shareholders) the right to communicate with other
shareholders in connection with requesting a meeting of shareholders for the
purpose of removing one or more Trustees. Shareholders also have the right to
remove one or more Trustees without a meeting by a declaration in writing by a
specified number of shareholders. Shares have no preemptive or conversion
rights. The rights of redemption are described in the Prospectus. Shares are
fully paid and non-assessable by the Fund. Stock certificates are not issued by
the Fund.
The By-laws of the Fund provide that the presence in person or by proxy
of the holders of record of one third of the shares of the Fund outstanding and
entitled to vote thereat shall constitute a quorum at all meeting of Fund
shareholders, except as otherwise required by applicable law. The Bylaws further
provide that all questions shall be decided by a majority of the votes cast at
any such meeting at which a quorum is present, except as otherwise required by
applicable law.
The Trustees of the Fund themselves have the power to alter the number
and the terms of the office of the Trustees of the Fund, to lengthen their own
terms, or to make their terms of unlimited duration subject to certain removal
procedures, and to appoint their own successors; provided that at least
two-thirds of the Trustees of the Fund have been elected by shareholders.
The Portfolio, in which all of the assets of the Fund are invested, is
organized as a trust under the law of the State of New York. The Portfolio's
Declaration of Trust provides that the Fund and other entities investing in the
Portfolio (e.g., other investment companies, insurance company separate accounts
and common and commingled trust funds) are each liable for all obligations of
the Portfolio. However, the risk of the Fund incurring financial loss on account
of such liability is limited to circumstances in which both inadequate insurance
existed and the Portfolio itself was unable to meet its obligations.
Accordingly, the Trustees of the Fund believe that neither the Fund nor its
shareholders will be adversely affected by reason of the investment of all of
the assets of the Fund in the Portfolio.
Each investor in the Portfolio, including the Fund, may add to or reduce
its investment in the Portfolio on each day the New York Stock Exchange is open
for regular trading. At 4:00 P.M., New York time on each such business day, the
value of each investor's beneficial interest in the Portfolio is determined by
multiplying the net asset value of the Portfolio by the percentage, effective
for that day, which represents that investor's share of the aggregate beneficial
interests in the Portfolio. Any additions or withdrawals, which are to be
effected on that day, are then effected. The investor's percentage of the
aggregate beneficial interests in the Portfolio is then recomputed as the
percentage equal to the fraction (i) the numerator of which is the value of such
investor's investment in the Portfolio as of 4:00 P.M., New York time on such
day plus or minus, as the case may be, the amount of any additions to or
withdrawals from the investor's investment in the Portfolio effected on such
day, and (ii) the denominator of which is the aggregate net asset value of the
Portfolio as of 4:00 P.M., New York time on such day plus or minus, as the case
may be, the amount of the net additions to or withdrawals from the aggregate
investments in the Portfolio by all investors in the Portfolio. The percentage
so determined is then applied to determine the value of the investor's interest
in the Portfolio as of 4:00 P.M., New York time on the following business day of
the Portfolio.
The Fund is an entity of the type commonly known as a "Massachusetts
business trust". Under Massachusetts law, shareholders of such a business trust
may, under certain circumstances, be held personally liable as partners for its
obligations and liabilities. However, the Declaration of Trust contains an
express disclaimer of shareholder liability for acts or obligations of the Fund
and provides for indemnification and reimbursement of expenses out of Fund
property for any shareholder held personally liable for the obligations of the
Fund. The Declaration of Trust also provides that the Fund shall maintain
appropriate insurance (for example, fidelity bonding and errors and omissions
insurance) for the protection of the Fund, its shareholders, Trustees, officers,
employees and agents covering possible tort and other liabilities. Thus, the
risk of a shareholder's incurring financial loss because of shareholder
liability is limited to circumstances in which both inadequate insurance existed
and the Fund itself was unable to meet its obligations.
Whenever the Fund is requested to vote on a matter pertaining to the
Portfolio, the Fund will vote its shares without a meeting of shareholders of
the Fund if the proposal is one, if which made with respect to the Fund, would
not require the vote of shareholders of the Fund, as long as such action is
permissible under applicable statutory and regulatory requirements. For all
other matters requiring a vote, the Fund will hold a meeting of shareholders of
the Fund and, at the meeting of investors in the Portfolio, the Fund will cast
all of its votes in the same proportion as the votes of the Fund's shareholders
even if all Fund shareholders did not vote. Even if the Fund votes all its
shares at the Portfolio meeting, other investors with a greater pro rata
ownership in the Portfolio could have effective voting control of the operations
of the Portfolio.
The Declaration of Trust further provides that obligations of the Fund are
not binding upon the Fund's Trustees individually but only upon the property of
the Fund and that the Fund's Trustees are not liable for any action or failure
to act, but nothing in the Declaration of Trust protects a Fund's Trustee
against any liability to which he would otherwise be subject by reason of wilful
misfeasance, bad faith, gross negligence, or reckless disregard of the duties
involved in the conduct of his office.
Interests in the Portfolio have no preference, preemptive, conversion or
similar rights, and are fully paid and non-assessable. The Portfolio is not
required to hold annual meetings of investors, but will hold special meetings of
investors when, in the judgment of its Trustees, it is necessary or desirable to
submit matters for an investor vote. Each investor is entitled to a vote in
proportion to the share of its investment in the Portfolio.
PORTFOLIO BROKERAGE TRANSACTIONS
---------------------------------------------------------------
The Portfolio is managed actively in pursuit of its investment
objective. Securities are not traded for short-term profits but, when
circumstances warrant, securities are sold, without regard to the length of time
held. A 100% annual turnover rate would occur, for example, if all portfolio
securities (excluding short-term obligations) were replaced once in a period of
one year. The amount of brokerage commissions and taxes on realized capital
gains to be borne by the shareholders of the Fund tend to increase as the
turnover rate increases.
In effecting securities transactions for the Portfolio, the Investment
Manager seeks to obtain the best price and execution of orders. In selecting a
broker, the Investment Manager considers a number of factors including: the
broker's ability to execute orders without disturbing the market price; the
broker's reliability for prompt, accurate confirmations and on-time delivery of
securities; the broker's financial condition and responsibility; the research
and other investment information provided by the broker; and the commissions
charged. Accordingly, the commissions charged by any such broker may be greater
than the amount another firm might charge if the Investment Manager determines
in good faith that the amount of such commissions is reasonable in relation to
the value of the brokerage services and research information provided by such
broker.
The Investment Manager may direct a portion of the Portfolio's
securities transactions to certain unaffiliated brokers which in turn use a
portion of the commissions they receive from the Portfolio to pay other
unaffiliated service providers on behalf of the Portfolio for services provided
for which the Portfolio would otherwise be obligated to pay. Such commissions
paid by the Portfolio are at the same rate paid to other brokers for effecting
similar transactions in listed equity securities.
Research services provided by brokers to which Brown Brothers Harriman
& Co. has allocated brokerage business in the past include economic statistics
and forecasting services, industry and company analyses, portfolio strategy
services, quantitative data, and consulting services from economists and
political analysts. Research services furnished by brokers are used for the
benefit of all the Investment Manager's clients and not solely or necessarily
for the benefit of the Portfolio. The Investment Manager believes that the value
of research services received is not determinable and such research does not
significantly reduce its expenses. The Portfolio does not reduce the fee paid to
the Investment Manager and Investment Adviser by any amount that might be
attributable to the value of such services.
Portfolio securities are not purchased from or sold to the
Administrator, Distributor, Investment Manager or Investment Adviser or any
"affiliated person" (as defined in the 1940 Act) of the Administrator,
Distributor, Investment Manager or Investment Adviser when such entities are
acting as principals, except to the extent permitted by law.
A committee, comprised of officers and partners of Brown Brothers
Harriman & Co. who are portfolio managers of some of Brown Brothers Harriman &
Co.'s managed accounts (the "Managed Accounts"), evaluates semi-annually the
nature and quality of the brokerage and research services provided by brokers,
and, based on this evaluation, establishes a list and projected ranking of
preferred brokers for use in determining the relative amounts of commissions to
be allocated to such brokers. However, in any semi-annual period, brokers not on
the list may be used, and the relative amounts of brokerage commissions paid to
the brokers on the list may vary substantially from the projected rankings.
The Trustees of the Portfolio review regularly the reasonableness of
commissions and other transaction costs incurred for the Portfolio in light of
facts and circumstances deemed relevant from time to time and, in that
connection, receive reports from the Investment Manager and published data
concerning transaction costs incurred by institutional investors generally.
Over-the-counter purchases and sales are transacted directly with
principal market makers, except in those circumstances in which, in the judgment
of the Investment Manager, better prices and execution of orders can otherwise
be obtained. If the Portfolio effects a closing transaction with respect to a
futures or option contract, such transaction normally would be executed by the
same broker-dealer who executed the opening transaction. The writing of options
by the Portfolio may be subject to limitations established by each of the
exchanges governing the maximum number of options in each class which may be
written by a single investor or group of investors acting in concert, regardless
of whether the options are written on the same or different exchanges or are
held or written in one or more accounts or through one or more brokers. The
number of options which the Portfolio may write may be affected by options
written by the Investment Manager for other investment advisory clients. An
exchange may order the liquidation of positions found to be in excess of these
limits, and it may impose certain other sanctions.
On those occasions when Brown Brothers Harriman & Co. deems the
purchase or sale of a security to be in the best interests of the Portfolio as
well as other customers, Brown Brothers Harriman & Co., to the extent permitted
by applicable laws and regulations, may, but is not obligated to, aggregate the
securities to be sold or purchased for the Portfolio with those to be sold or
purchased for other customers in order to obtain best execution, including lower
brokerage commissions, if appropriate. In such event, allocation of the
securities so purchased or sold as well as any expenses incurred in the
transaction are made by Brown Brothers Harriman & Co. in the manner it considers
to be most equitable and consistent with its fiduciary obligations to its
customers, including the Portfolio. In some instances, this procedure might
adversely affect the Portfolio
<PAGE>
ADDITIONAL INFORMATION
---------------------------------------------------------------
As used in this Statement of Additional Information and the Prospectus,
the term "majority of the outstanding voting securities" (as defined in the 1940
Act) currently means the vote of (i) 67% or more of the outstanding voting
securities present at a meeting, if the holders of more than 50% of the
outstanding voting securities of the Fund or Portfolio, as the case may be, are
present in person or represented by proxy; or (ii) more than 50% of the
outstanding voting securities of the Fund or Portfolio, as the case may be,
whichever is less.
Fund shareholders receive semi-annual reports containing unaudited
financial statements and annual reports containing financial statements audited
by independent auditors.
Other mutual funds or institutional investors may invest in the Portfolio
on the same terms and conditions as the Fund. However, these other investors may
have different sales commissions and other operating expenses which may generate
different aggregate performance results. Information concerning other investors
in the Portfolio is available from Brown Brothers Harriman & Co.
The Fund may withdraw it's investment in the Portfolio as a result of
certain changes in the Portfolio's investment objective, policies or
restrictions or if the Board of Trustees of the Fund determines that it is
otherwise in the best interests of the Fund to do so. Upon any such withdrawal,
the Board of Trustees of the Fund would consider what action might be taken,
including the investment of all of the assets of the Fund in another pooled
investment entity or the retaining of an investment adviser to manage the Fund's
assets in accordance with the investment policies of the Portfolio. In the event
the Trustees of the Fund were unable to accomplish either, the Trustees will
determine the best course of action.
With respect to the securities offered by the Prospectus, this
Statement of Additional Information and the Prospectus do not contain all the
information included in the Registration Statement filed with the Securities and
Exchange Commission under the Securities Act of 1933. Pursuant to the rules and
regulations of the Securities and Exchange Commission, certain portions have
been omitted. 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 Statement of Additional Information and
the Prospectus concerning the contents of any contract or other document are not
necessarily complete, and in each instance, reference is made to the copy of
such contract or other document filed as an exhibit to the Registration
Statement. Each such statement is qualified in all respects by such reference.
FINANCIAL STATEMENTS
The Fund's statement of assets and liabilities dated [ , 2000] included
herein has been included in reliance upon the report of Deloitte & Touche LLP,
independent auditors for the Fund.
WS5899
<PAGE>
PART C
ITEM 23. EXHIBITS.
(a) Declaration of Trust of the Registrant. (1)
(b) By-Laws of the Registrant. (2)
(c) Not Applicable.
(d) Not Applicable.
(e) Distribution Agreement between the Registrant and
Signature Broker-Dealer Services, Inc. (2)
(f) Not Applicable.
(g) Form of Custodian Agreement between the Registrant and
Brown Brothers Harriman & Co. (2)
(h) (1) Transfer Agency Agreement between the Registrant and Forum Shareholder
Services, LLP (2)
(h) (2) Administration Agreement between the Registrant and
Brown Brothers Harriman & Co. (2)
(h) (3) Subadministrative Services Agreement between the
Registrant and 59 Wall Street Administrators, Inc. (2)
(i) Opinion of Counsel (2)
(j) Independent auditors' consent (2)
(k) Not Applicable
(l) Representation letters from initial shareholders (2)
(m) Distribution Plan (2)
(n) Not Applicable.
(o) Not Applicable.
<PAGE>
(p) Code of Ethics of the Fund (2)
(p)(i) Code of Ethics of the Investment Adviser (2)
(p)(ii) Code of Ethics of the Investment Manager (2)
(p)(iii) Code of Ethics of the Distributor (2)
(1) Filed herewith.
(2) To be filed by Amendment.
ITEM 24. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH REGISTRANT.
See "Trustees and Officers" in the Statement of Additional
Information filed as part of this Registration Statement.
ITEM 25. INDEMNIFICATION.
Reference is made to Article VII of the Registrant's By-Laws
and to Section 5 of the Distribution Agreement between the Registrant and
Signature Broker-Dealer Services, Inc.
Registrant, its Trustees and officers, and persons affiliated
with them are insured against certain expenses in connection with the defense of
action, suits or proceedings, and certain liabilities that might be imposed as a
result of such actions, suits or proceedings.
Insofar as indemnification for liability arising under the
Securities Act of 1933, as amended (the "Act"), may be permitted to Trustees,
officers and controlling persons of the Registrant pursuant to the foregoing
provisions, or otherwise, the Registrant has been advised that in the opinion of
the Securities and Exchange Commission such indemnification is against public
policy as expressed in the Act and is, therefore, unenforceable. In the event
that a claim for indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a Trustee, officer of
controlling person of the Registrant in the successful defense of any action,
suit or proceeding) is asserted by such Trustee, officer or controlling person
in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question of whether
such indemnification by it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
ITEM 26. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.
The investment adviser of the Portfolio, Wafra Investment
Advisory Group, Inc., a U.S. registered investment adviser, acts as investment
adviser for numerous investment funds and managed accounts, including other
Islamic funds and products.
To the knowledge of the Registrant, none of the principals or
officers of Wafra Investment Advisory Group, Inc. is engaged in any other
business, profession, vocation or employment of a substantial nature.
ITEM 27. PRINCIPAL UNDERWRITERS.
1. (a) Signature Broker-Dealer Services, Inc. and its affiliates,
also serves as administrator and/or distributor
registered investment companies.
(b) Set forth below are the names, principal
business addresses and positions of each
Director and officer of Signature
Broker-Dealer Services, Inc. The principal
address of these individuals is c/o
Signature Broker-Dealer Services, Inc., 21
Milk Street, Boston, MA 02109. Unless
otherwise specified, no officer or Director
of Signature Broker-Dealer Services, Inc.
serves as an officer or Director of the
Registrant.
<TABLE>
<S> <C> <C>
Position and Offices with Position and Offices
Name Signature Broker-Dealer Services, Inc. with the Registrant
--------- -------------------------------------- -------------------
Philip W. Coolidge Chief Executive Officer, President President
And Director
Molly S. Mugler Secretary Secretary
Linwood C. Downs Treasurer Treasurer
Susan Jakuboski Assistant Treasurer Assistant Treasurer
Christine D. Dorsey -- Assistant Secretary
Robert Davidoff Director --
CMNY Capital L.P.
135 East 57th Street
New York, NY 10022
Donald Chadwick Director --
Scarborough & Company
110 East 42nd Street
New York, NY 10017
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C>
Position and Offices with Position and Offices
Name Signature Broker-Dealer Services, Inc. with the Registrant
--------- -------------------------------------- -------------------
Leeds Hackett Director --
National Credit
Management Corporation
10155 York Road
Cockeysville, MD 21030
Laurence E. Levine Director --
First International
Capital Ltd.
130 Sunrise Avenue
Palm Beach, FL 33480
</TABLE>
(c) Not Applicable.
ITEM 28. LOCATION OF ACCOUNTS AND RECORDS.
All accounts, books and other documents required to be
maintained by Section 31(a) of the Investment Company Act of 1940, as amended,
and the Rules thereunder are maintained at the offices of:
Islamic Global Equity Fund
21 Milk Street, 5th Floor
Boston, MA 02109
Brown Brothers Harriman & Co.
59 Wall Street
New York, NY 10005
(investment manager)
Brown Brothers Harriman Trust Company
63 Wall Street
New York, NY 10005
(administrator)
59 Wall Street Administrators, Inc.
21 Milk Street, 5th Floor
Boston, MA 02109
(subadministrator)
<PAGE>
Signature Broker-Dealer Services, Inc.
21 Milk Street, 5th Floor
Boston, MA 02109
(distributor)
Brown Brothers Harriman & Co.
40 Water Street
Boston, MA 02109
(custodian)
Forum Shareholder Services, LLP
Two Portland Square
Portland, ME 04101
(transfer agent)
ITEM 29. MANAGEMENT SERVICES.
Not Applicable.
ITEM 30. UNDERTAKINGS.
Not Applicable.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant has duly caused this registration
statement on Form N-1A to be signed on its behalf by the undersigned, thereto
duly authorized, in the City of Boston, Massachusetts on the 6th day of
September, 2000.
ISLAMIC GLOBAL EQUITY FUND
By: /s/PHILIP W. COOLIDGE
Philip W. Coolidge, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the date indicated above.
Signature Title
/s/PHILIP W. COOLIDGE President (Principal Executive
Philip W. Coolidge Officer)
/s/LINWOOD C. D OWNS Treasurer (Principal
Linwood C. Downs Accounting Officer)
/s/PHILIP W. COOLIDGE Trustee
Philip W. Coolidge
/s/MOLLY S. MUGLER Trustee
Molly S. Mugler
/s/CHRISTINE D. DORSEY Trustee
Christine D. Dorsey
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant has duly caused this registration
statement on Form N-1A to be signed on its behalf by the undersigned, thereto
duly authorized, in the City of Boston, Massachusetts on the 6th day of
September, 2000.
DOW JONES ISLAMIC MARKET INDEX PORTFOLIO
By: /s/ PHILIP W. COOLIDGE
Philip W. Coolidge, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the date indicated above.
Signature Title
/s/ RICHAR D L. CARPENTER Trustee
Richard L. Carpenter
/s/ CLIFFORD A. CLARK Trustee
Clifford A. Clark
/s/ J. ANGUS IVORY Trustee
J. Angus Ivory
/s/ PHILIP W. COOLIDGE President (Principal Executive
Philip W. Coolidge Officer)
/s/ LINWOOD C. DOWNS Treasurer (Principal
Linwood C. Downs Accounting Officer)
<PAGE>
INDEX TO EXHIBITS
EXHIBIT NO. DESCRIPTION OF EXHIBIT
EX-99.(a) Declaration of Trust of Registrant.