SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Commission File No. 811-2886
Form N-2
1940 Act File No. 811-2886
Registration Statement Under the Investment Company Act of 1940
Annual Amendment # 18
DK INVESTORS, INC.
(Exact Name of Registrant as Specified in Charter)
205 LEXINGTON AVENUE
16TH FLOOR
NEW YORK, NY 10016
(Address of Principal Executive Offices) (Zip Code)
(212)779-4233
(Registrant's Telephone Number, include Area Code)
A Bond Fund
DK Investors, Inc.
205 Lexington Avenue
16th Floor
New York, NY 10016
Attn: Gene Nadler, President
(212) 779-4233
(Name and address of Agent for Service)
Items 1 - 7. Not Applicable
Item 8. General Information and History
1. a) DK Investors, Inc. ("Registrant"), was formerly named Donnkenny,
Inc., and was incorporated under the laws of the State of New York in the
year 1934.
b) The Registrant has engaged solely in the business of a closed end
diversified Investment Company since December 1, 1978.
c) Not applicable.
d) The following table sets forth the per share net asset value and
the per share market value of the Registrant's Common Stock on a quarterly
basis for the past 3 years. Registrant's securities are publicly held,
there being 197 shareholders at the time of this filing. Trading in
Registrant's stock, however, is very sporadic and sales take place only a
few times each year. There is no record of the volume of trading in
Registrant's stock. Shares of closed-end investment companies frequently
trade for amounts less than net asset value. The Company's shares are
listed on the Pink Sheets of the Over the Counter Market.
Table 1
Net Asset Value Price
High Low High Low
Year ended December 31, 1997
Quarter Ended March 31, 1997 13.24 13.04 9.0 8.5
Quarter Ended June 30, 1997 13.16 13.09 9.0 8.5
Quarter Ended September 30, 1997 13.20 13.11 9.125 9.5
Quarter Ended December 31, 1997 13.19 13.07 9.375 8.625
Year Ended December 31, 1996
Quarter Ended March 31, 1996 13.45 13.21 8.25 9.125
Quarter Ended June 30, 1996 13.27 13.13 8.625 9.375
Quarter Ended September 30, 1996 13.25 13.13 8.625 9.375
Quarter Ended December 31, 1996 13.31 13.17 8.625 9.375
Year Ended December 31, 1995
Quarter Ended March 31, 1995 13.34 13.16 8.25 8.0
Quarter Ended June 30, 1995 13.42 13.30 8.5 8.0
Quarter Ended September 30, 1995 13.42 13.39 8.5 8.0
Quarter Ended December 31, 1995 13.45 13.35 8.5 8.25
2. Investment Objectives and Policies
a) and b) Registrant's investment objectives and policies were set
forth on pages 22 through 25 of the Proxy Statement dated November 9,
1978, under the caption "INVESTMENT POLICIES." These are incorporated
herein by reference. Said investment objectives may not be changed
without the vote of stockholders. The Registrant intends to achieve its
objectives by investing in Tax Exempt Securities rated A or better.
Registrant does not intend to concentrate its investments in any one
state, municipality or agency.
c) For the fiscal year ended December 31, 1997, the portfolio
turnover rate was 29.9%; for the fiscal year ended December 31, 1995, the
portfolio turnover rate was 16.1%. The instability during the year as a
result of the substantial fluctuations in the stock and bond markets and
the fear of the Federal Reserve's raising of interest rates as well as the
maturity of some of our investments led our investment advisors to
recommend some repositioning of the company's holdings in an effort to
maintain the highest rate of income to be received by the Company from its
investments while being true to our investment policies. As with any
investment, a certain amount of risk must be assumed by shareholders.
However, Registrant, by investing in government bonds (state, municipal
and government agencies) with a rating of A or better hopes to minimize
the risks to shareholders. Registrant does not leverage any of its
investments.
3. Tax Status
a) The Registrant qualifies as a regulated investment company under
the Internal Revenue Code and, accordingly, it is free of Federal income
taxation. The Registrant anticipates no change in its tax-free status.
b) Interest income is tax-free to the Registrant. Dividends paid to
Shareholders are exempt interest dividends and, accordingly, are also
tax-free for Federal income tax purposes.
c) The Registrant does, and intends to continue to, distribute at
lease ninety (90%) percent of the income from its investments to its
shareholders on a quarterly dividend basis. The Registrant has no
dividend reinvestment plan. The Registrant has not made, and does not
intend to make, distributions of any realized capital gains.
4. Brokerage Allocation
a) Registrant paid aggregate brokerage commissions during the last
three fiscal years as follows:
1997 - None
1996 - None
1995 - None
1997 - None
1996 - None
1995 - None
1997 - None
1996 - None
1995 - None
b) All transactions were effected through Registrant's investment
advisor, Chase Asset Management (CAM), subsidiary of Chase Manhattan Bank
which was merged with Chemical Banks. Chase Asset Management, Inc., may
have used other brokers to consummate such transactions for them, however,
the selection of such brokers was solely up to Chase Asset Management,
Inc., Since Chase Asset Management, Inc., was paid a yearly fee for acting
as investment advisor to Registrant, no "extra" or "additional" services
were considered when brokerage commission was paid. Chase Asset
Management, Inc., did not charge commissions to Registrant for purchases
of securities. Chase Asset Management, Inc., may pay a commission to
brokers through whom they effect transactions on behalf of Registrant.
Such commissions however, may not be in excess of those charged by other
brokers who deal in such securities. Registrant "spot checks" such
commissions, if and when charged, by calling other brokers to verify same.
No commissions were paid in 1997.
c) Not applicable.
d) Not applicable.
e) Not applicable.
Item 9. Management
a) Control Persons and Principal Holders of Securities
As of December 31, 1997, the following tables set forth the persons
known to the management of the Registrant to be the beneficial owners of
more than 25% of the voting securities of the Registrant and the equity
holdings of all officers and directors of the Registrant as a group.
Registrant has no advisory board.
Table 2
Shares held both
of record % of
Name and Address of Beneficially Class
Murray Nadler 354,532 30.16
100 Sunrise Avenue (100 owned of record;
Palm Beach, Florida 354,432 owned by trust in
which Elizabeth Nadler
Gene Nadler and Harry
Nadler are trustees)
Ann Nadler died 1/11/96--shares owned by her were distributed to her
children and grandchildren and to a testamentary trust, no one of which
owns 25%.
b) The following Table sets forth the name and address of each
person, in addition to those named in Table 2 herein, owning either
beneficially or of record 5 percent or more of the stock of DK Investors,
Inc.
Table 3
Shares held both
of record % of
Name and Address of Beneficially Class
* Estate of 156,076
Glenn O. Thornhill (all owned of record) 13.27
Stonewall Forest
Officers and 596,553 50.74
Directors of a Group
* Glenn O. Thornhill died during 1997. His shares are owned by his
estate.
In addition to those named in Table 2 and Table 3 herein:
20,226 shares are owned by Mr. Murray Nadler's son, Gene, as his
separate property. Gene Nadler is the President of DK Investors, Inc.,
and a director.
19,401 shares are owned by Mr. Murray Nadler's son, Harry, as his
separate property. Harry Nadler is a director of DK Investors, Inc.
55,973 shares are owned by Ms. Sheila Nadler, Ann Nadler's daughter
as her separate property.
55,973 shares are owned by Mrs. Ann Nadler's daughter, Francine Yellon,
who is the wife of Leslie Yellon, as her separate property.
10,638 shares are owned by Mrs. Ann Nadler's son-in-law, Leslie Yellon,
as his separate property.
14,923 shares are owned by Ms. Debra David, granddaughter of Mrs. Ann
Nadler, as her separate property.
14,923 shares are owned by Irene Lipson, granddaughter of
Mrs. Ann Nadler, as her separate property.
A testamentary trust created under the Will of Ann Nadler for the
benefit of her children and grandchildren owns 153,000 shares. Gene
Nadler, Harry Nadler and H. B. Carroll are the Trustees. Ann Nadler's
Estate continues to own 100,000 shares. H. B. Carroll and Joseph Pomeranz
are the Executors.
Mona T. Armistead, daughter of Glenn O. Thornhill, as custodian under
the Uniform Gifts to Minors Act for her Son, Clay Armistead owns 42 shares
as the separate property of said child.
Wade O. Armistead, a grandson of Glenn O. Thornhill, Sr., owns 603
shares as his separate property.
Mona T. Armistead, a daughter of Glenn O. Thornhill, as custodian
under the Virginia Uniform Gifts to Minors Act, owns 1,100 shares on
on behalf of Robert Ashley Armistead and 1,100 shares on behalf of Wade
Owen Armistead.
Robert A. Armistead, husband, of Mona T. Armistead, owns 572 shares as
his separate property.
Mary Alice Bodenhorst, daughter of Glenn O. Thornhill, owns 11 shares
as custodian for the benefit of each of her children, Jeoffrey B.
Bodenhorst, Jr., Lisa M. Bodenhorst, and Mona B. Bodenhorst.
Mona T. Armistead and Robert A. Armistead, Trustees of a family trust
trust dated January 24, 1985, own 10,606 shares.
Mary Alice T. Bodenhorst, Glen O. Thornhill's daughter, as her
separate property, owns 10,780 shares.
Mary Alice T. Bodenhorst and Talfourd H. Kemper are co-trustees of a
trust owning 466 shares, of which Glenn O. Thornhill is the beneficiary.
Jonathan Clay Bruns, grandson of Glenn O. Thornhill, as his separate
property, owns 1,608 shares.
Wyatt Nelson Thornhill, a grandson of Glenn O. Thornhill, owns 1,616
shares as his separate property.
Christine H. Thornhill, a granddaughter of Glenn O. Thornhill, owns
1,100 shares as her separate property.
Glenn O. Thornhill, III, a grandson of Glenn O. Thornhill, Sr., owns
1,616 shares as his separate property.
Glenn O. Thornhill, Jr., and Talfourd Kemper, as trustees of various
trusts for the benefit of Glenn O. Thornhill, Sr., own 4,562 shares.
Joanne B. Thornhill, a granddaughter of Glenn O. Thornhill, Sr., owns
600 shares for the benefit of David T. Thornhill under the Uniform Gift to
Minors Act, 599 shares for the benefit of Kelly L. Thornhill.
Joanne B. Thornhill, Lorraine W. Thornhill and Suzanne P. Thornhill,
granddaughters of Glenn O. Thornhill, Sr., each own 5 shares as her
separate property.
Suzanne P. Thornhill, a granddaughter of Glenn O. Thornhill, Sr., owns
18 shares as custodian under the Uniform Gift to Minors Act for the
benefit of Laura G. Thornhill.
Directors, Officers and Advisory Board Members
Registrant does not have an Advisory Board. The following Table sets
forth the name and address, the position held with Registrant and the
principal occupation during the last five years of the officers and
directors of Registrant.
Table 4
Position Held Principal Occupation
Name and Address With Registrant During Past Five Years
Gene Nadler* President and Account Executive at
505 East 79th Street Director Smith Barney Shearson
New York, New York
Harry Nadler* Director and Involved in Real
388 Clayton Road Vice-President Estate and Real Estate
Scarsdale, New York Investments
Thomas B. Schulhof Director President & Director
Quadriga Art, Inc. of Quadriga Art, Inc.
11 East 26th Street Became a Director
New York, New York November, 1986.
Angelo Balafas Director Formerly Sr. Vice
355 North Avenue President--The
Fort Lee, New Jersey Portfolio Group and
Equity Investment
Manager
Joseph Kell Director International Freight
220 Madison Avenue
New York, New York
Andrew Brucker Director and An attorney (Partner
350 Fifth Avenue Secretary in the firm of
New York, New York Schechter, Brucker) and
a Director since 1993.
Francine Yellon Director Housewife and daughter
525 West 235th Street of Leon and Ann Nadler.
Bronx, New York Leon Nadler was a
founder of the Company.
He died January, 1984
Ann Nadler died January
11, 1996.
* Indicates interested persons as defined by Sec. 2(a) (19) of the 1940
Act.
b. No person listed in Table 4 holds any position with affiliated
persons or principal underwriters of Registrant, except that Angelo
Balafas owns shares of the stock of Chemical Bank (now Chase Manhattan
Bank).
c. Remuneration of Directors and Others
No director or officer received remuneration in excess of $40,000.00
from Registrant during the last fiscal year. Registrant has no advisory
Board.
No affiliated person received remuneration in excess of $40,000 from
Registrant during the last fiscal year.
d. Custodian, Transfer Agent and Dividend Paying Agent
Chase Manhattan Bank, 55 Water Street, New York, New York, holds all
portfolio securities of Registrant, as custodian.
On February 1, 1988, American Stock Transfer and Trust Company was
appointed as Transfer Agent and dividend paying agent.
e. Investment Advisory and other Services
As a result of the merger of Chemical Bank and Chase Manhattan Bank,
Chase Asset Management, Inc. (CAM) has replaced the Portfolio Group as
Investment Advisor. Chase Manhattan Bank ("Chase") is one of America's
leading banking institutions. Chase has been in existence, although under
varying names throughout the period, for more than a century and a half.
CAM has been registered as an investment adviser with the SEC since 1983.
CAM is a wholly-owned subsidiary of Chase Manhattan Bank and has
affiliations with Chase Manhattan Bank, Texas Commerce Bank, and Brown &
Company Securities Corporation.
CAM has approximately 8.46 billion dollars under management for 121
clients, which represents a wide range of clientele from registered mutual
funds and pension accounts to wealthy individuals. CAM has been a
nondiscretionary investment adviser to DK Investors, and DK Investors
closely follows their investment policy.
Chase Asset Management, Inc., Board of Directors
James W. Zeigon, Chairman of the Board
Executive Vice President of The Chase Manhattan Corporation and the
sector executive for Global Asset Management and The Chase Manhattan
Private Bank.
Senior Management of Chase Asset Management, Inc. (CAM)
Mark Richardson, Chief Investment Officer and Chief Executive Officer of
Global Asset Management. Mr. Richardson joined The Chase Manhattan Bank
in 1992 as Chief Investment Officer of the Private Bank. He assumed
additional responsibilities as Chief Investment Officer and co-head of
Chase Asset Management in 1994 and now fulfills the same role in Global
Asset Management following the merger with Chemical. He is responsible
for coordinating global investment strategy for the whole organization
and, through Chase Asset Management for the management of institutional
client portfolios and the Vista family of mutual funds and unit trusts.
Mr. Richardson was formerly Senior Investment Officer at the Olayan Group
in London. Prior to that, he spend 21 years with Lazard Brothers & Co.
Ltd.; London, where he served most recently as Director and Head of the
Institutional Funds Department. Mr. Richardson has a M.A. (Hons.) in
Philosophy, Politics and Economics from Oxford University.
Stephen E. Prostano, Chief Operating Officer of Global Asset Management,
is responsible for overall business management including the
Institutional, Funds, Private Banking and Advisory business, as well as
all operating issues with Global Asset Management. Mr. Prostano joined
the Chase Manhattan Private Bank in 1993 as the Chief Financial and
Administrative Officer for the U.S. Area. In 1994, Mr. Prostano
responsibilities expanded and he became Chief Operating Officer and
co-head of Chase Asset Management. Prior to joining Chase, he held
similar positions with the Boston Company and Mellon Bank. Additionally,
Mr. Prostano was a Senior Tax Manager with KPMG and a Professor at the
Boston College Carroll Graduate School of Management. Mr. Prostano
graduated Magna Cum Laude from Boston College wit a B.A. in Economics and
Philosophy. He completed his J.D. Cum Laude at the University of Miami
School of Law and received an LL.M. degree in Taxation from Boston
University Law School. In addition, Mr. Prostano is a Certified Public
Accountant.
Susan S. Huang, Director of U.S. Fixed Income, is in charge of developing
the investment strategy and overseeing the management of the firm's U.S.
fixed income portfolios. She has spend over 19 years in the investment
industry and has held senior investment positions at Equitable Capital
Management, CS First Boston Investment Management, and most recently,
Hyperion Capital Management. In addition to her investment expertise, Ms.
Huang has also spent much of her career developing the institutional
asset management business in these firms both in the U.S. and in the Asia.
She holds a degree in music from the Juilliard School of Music, B.A. Cum
Laude in Economics from Princeton University, and an M.B.A. in Finance
from Columbia University.
Michael H. Fara, Head of Insurance Investment Group, is responsible for
asset/liability management and analytics for the firm's insurance
portfolios. He is also involved in the evaluation and development of
analytic systems which support portfolio management and relative value
assessment. Mr. Fara has spent 13 years developing fixed income and
mortgage security modeling at Morgan Stanley and Smith Barney. Prior to
CAM, he was at Hyperion Capital Management where he was responsible for
portfolio analytics and management of the firm's insurance assets. He
holds a B.A. Cum Laude in History from Yale University and an M.B.A. in
Finance from New York University.
John G. Schmucker, III, Senior Taxable Trainer, supports both mutual fund,
institutional and Private Bank portfolio managers in trade executions,
manages fixed income portfolios for international clients, including
government and supranational agencies. Most recently, he was a fixed
income manager for international clients at The Portfolio Group, Inc.
Prior to TPG, he was Chief Investment Officer of Chemical Bank's Official
Institutions Group. Mr. Schmucker joined Chemical from Henry Kaufman &
Company, Inc. He received a B.A. in Mathematics from Pennsylvania State
University and completed post graduate work at the University of
Pennsylvania, Wharton Graduate Division.
Timothy N. Neumann, CFA, Head of Mortgage Strategies Group, is responsible
for the management of short-term and LIBOR-based investment portfolios.
He also directs the firm's futures and options strategies and is a co-head
of core taxable accounts. Mr. Neumann has spent his twelve-year career as
a manager of fixed income portfolios. He joined Chase Asset Management
from Lehman Brothers Global Asset Management, where he was the portfolio
manager for the firm's mortgage-backed securities accounts. Prior to
Lehman, he managed fixed income portfolios at Allstate Insurance. He
received a B.S. in Business Administration with a major in Accounting from
the University of Nebraska.
John Hallinan, Senior Portfolio Manager, manages the short/intermediate
core fixed income portfolios. He joined CAM from The Portfolio Group,
Inc., where he managed short/intermediate duration accounts for both
individuals and institutions. He began his career in 1977 at the Chase
Manhattan Institution Investment Advisory, and his investments expertise
has since included fixed income positions at Wertheim Asset Management;
Donaldson, Lufkin, and Jenrette; and Irving Trust. Mr. Hallinan
received an B.A. in Economic from Georgetown University and a M.B.A. in
Finance from American University.
Donald Quigley, Portfolio Manager, manages the insurance assets under
management. He also performs the risk analysis and attributions for all
the accounts managed in the Insurance Investment Group. Prior to joining
Chase in 1993, Mr. Quigley was a corporate and asset-backed bond trader
at Metropolitan Life Insurance Co. He has a B.A. from Boston University
and an M.B.A. from Fordham University.
Andrew Russell, Portfolio Manager, manages short and intermediate
institutional portfolios. He is also responsible for the trading and
market analysis of asset-backed securities. Mr. Russell joined Chase in
1990 and has held several positions within the organization. He received
a B.A. in Political Science and History from the University of Vermont.
He is also a candidate for the Chartered Financial Analyst designation.
Michael R. Bennis, Head of U.S. Taxable Fixed Income Trading, is also
responsible for the development of the firm's mortgage-backed investment
strategies. Prior to Chase Asset Management, Mr. Bennis was a senior
mortgage specialist at UBS Asset Management, where he actively
participated in the management of over $2 billion in fixed income assets.
He was also a fixed income analyst at Donaldson, Lufkin and Jenrette
during the prior three years. Mr. Bennis began his career as a trade
analyst in the partnership finance division at Merrill Lynch & Co., Inc.
He received a B.A. in Economics from New York University.
R. Russell Hurst, Head of Short-Term Credit Research, joined the bank in
1995 with 17 years of credit experience. Prior to Chase, he was Head of
Research for Financial Security Assurance (FSA). His prior experience
also includes positions as a senior analyst at Moody's Investment Service
and as a lending officer at the Irving Trust Company. In addition, Mr.
Hurst is a Series 7 and 63 Registered Representative of the National
Association of Securities Dealers/NYSE, and a member of the Fixed Income
Analyst's Society of New York. He holds a B.A. in Political Theory from
Tulane University and an M.B.A. in Finance from the Tulane Graduate School
of Business.
Dominick J. DeAlto, Senior Credit Analyst, is responsible for taxable
fixed income credit research. He also manages intermediate separate
accounts for institutional clients. He joined Chemical Bank from
Continental Asset Management where he was the corporate bond sector
specialist. Prior to that, Dominick was a senior high yield analyst with
the asset management subsidiary of the Long Term Credit Bank of Japan. He
began his career in 1987 with The Chase Manhattan Bank in their formal
Credit Training Program. Mr. DeAlto graduated with honors from the State
University of New York at Oneonta with a B.S. in both Economics and
Accounting, and did his graduate work at NYU's Stern School of Business.
Donald Fine, Chief Market Analyst, directs the firm's economic research.
He has 28 years' experience in the fields of economics, interest rate
analysis, and asset-liability planning at Chase. Mr. Fine is often quoted
in the media as an informational source, and specializes in client
presentations on the economic and Federal Research policy outlook. He
received his undergraduate degree in Economics from the University of
Michigan in 1964, and two graduate degrees in Economics from Columbia
University in 1966 and 1969, respectively.
Lynn J. Chen, CFA, Portfolio Manager, manages short-term and LIBOR-based
investment portfolios focusing primarily on the management of
international institutional accounts. She is also responsible for
evaluating the overall investment strategy and the relative value analysis
for the firm's mortgage-backed securities holdings. Prior to CAM, she
spent seven years as both a portfolio manager and an analyst at Nippon
Life Insurance Company, where she managed money market funds and provided
analysis of mortgage-backed and corporate securities. She received a B.A.
in History from Beijing University and an M.P.A. in Public and
International Affairs from Princeton University.
Patrick J. Quilty, Jr., Head of Corporate Strategies Group, manages the
Vista taxable fixed income funds and is a co-head of all core taxable
accounts. He joined CAM from ARM Capital Advisors where he managed
investment grade corporate bonds for both total return and insurance
assets. Prior to that, he was a portfolio strategist at Lehman Brothers,
responsible for indexed strategies and development of portfolio systems
analytics. He also spent two years with J. P. Morgan involved with
corporate tender offers and acquisitions. Mr. Quilty holds a B.S. in
Economics from Florida State University and is a member of the New York
Society of Security Analysts. He is a candidate for the Chartered
Financial Analyst designation.
Thomas Nelson, Head of Short Term Fixed Income, is responsible for
overseeing the management of money market funds, short term commingled
bank funds, and separately managed institutional cash and liquidity
accounts. Prior to this position, he was responsible for the cash
reinvestment of the Securities Lending Division, a position he held since
1995, while concurrently managing many of the bank's money market funds.
Mr. Nelson joined the bank in 1987 as a portfolio manager and trader for
individual fixed income accounts. He received his B.A. from Duke
University.
Richard G. Moschel, Portfolio Manager, manages short term fixed income
portfolios. He also works closely with portfolio managers to execute
trades and to monitor ongoing investment strategies. He joined CAM from
The Portfolio Group, Inc., and was at Manufacturers Hanover prior to
that. Previously, Mr. Moschel had been a fixed income trader at First
Fidelity Bank in the asset management department, and had begun his career
with The Reserve Group, Inc., where he managed both taxable and tax-exempt
money market funds. Mr. Moschel has a B.A. in Finance from St. John's
University.
Jonas Kolk, Senior Portfolio Manager, oversees the investment strategy of
all Vista money market funds and is directly responsible for the
management of the Vista taxable money market funds. Mr. Kolk joined Chase
in 1993 as a money market trader. Prior to Chase, Mr. Kolk worked at The
Metropolitan Life Insurance Company in trade support, cash forecasting,
and cash management. Mr. Kolk received his B.A. Cum Laude from the State
University of New York at Albany, and his M.B.A. in Finance from Fordham
University.
Nicholas Rabiecki, III, Senior Portfolio Manager, manages institutional
cash and liquidity portfolios and is co-head of institutional cash
accounts. Prior to rejoining Chase in 1996, he held senior portfolio
manager positions both at Lehman Brothers Global Asset Management, where
he also co-directed short and intermediate fixed income strategies, and at
Chase. Mr. Rabieck's institutional mutual fund portfolios achieved
consistent top rankings at both Chase and Lehman Brothers. He holds a
B.A. from Boston College and an M.B.A. from Fordham University.
Peter J. Moffat, Portfolio Manager, manages the Vista Treasury and
Treasury Plus Money Market Funds. Previously, he held a similar position
at the Portfolio Group, Inc., where he had managed several of the Hanover
money market funds. Prior to TPG, Mr. Moffat had been with Manufacturers
Hanover since the beginning of his career in 1983. He received a B.A. in
Psychology from St. Francis College in 1981.
Patricia Tracy, Portfolio Manager, manages the Vista New York and
California Tax-Free Mutual Funds. Most recently, she held a similar
position with The Portfolio Group, Inc., where she managed the Hanover New
York Tax Free Fund. Prior to TPG, Ms. Tracy was a taxable money market
manager in the Official Institutions Group at Chemical Bank. Ms. Tracy
has over 15 years of investment experience and has worked for Chemical
Bank since 1968.
Annalise M. Tapia, Taxable Fixed Income Trader, is responsible for short
term fixed income and money market trading. Prior to joining CAM, she was
an Associate at Goldman Sachs where she traded government repos. Ms.
Tapia holds a B.S. from St. Lawrence University.
Ellen M. Bermel, Senior Portfolio Manager, is responsible for short term
institutional portfolios and a co-head of institutional cash accounts.
Prior to CAM, she spent three and a half years at Lehman Brothers Global
Asset Management as a senior portfolio manager of both institutional money
market funds and separate managed accounts. Previously, Ms. Bermel spent
ten years at Smith Barney in the management of money market and longer
fixed income mutual funds. Ms. Bermel began her career at the Reserve
Fund, Inc., moving from customer service to portfolio management. She
holds a B.A. from Boston College and an M.B.A. from Adelphi University.
Thimothy R. Wilson, Senior Industrial Analyst, is responsible for
analyzing and reviewing all domestic and foreign short-term industrial
issues. Previously, Mr. Wilson was counterparty risk manager for Global
Asset Management and, before that, a client and credit manager with the
corporate finance group of Chase Canada. Mr. Wilson joined the bank in
1981 and currently has over ten years' investment research experience.
He holds a B.A. in Economics and Math and an M.B.A. from the University of
Toronto. Mr. Wilson has been designated a Chartered Financial Analyst.
Armand Ursino, Senior Financial Institutions Analyst, is responsible for
analyzing and reviewing all domestic and foreign short-term financial
institutions. Mr. Ursino joined CAM in 1995 with over 25 years of
investing research experience. His prior experience includes senior
analyst positions at the financial guaranty firms of AMBAC and FGIC, and
at Fitch and Moody's rating agencies. In addition, Mr. Ursino was a
National Bank Examiner with the U.S. Treasury and managed his own
consulting business. He holds a B.S. and an M.B.A. from Seton Hall
University.
May Lee, Senior Financial Institutions Analyst, is responsible for
analyzing and reviewing all domestic and foreign short-term financial
institutions. Ms. Lee joined CAM in 1997 with 8 years of credit
experience. Previously, she held analyst positions at Moody's Investors
Service and at Philip Morris in Asia. Ms. Lee is a member of the New York
Society of Security Analysts, the Association for Investment Management
and Research, and the International Society of Financial Analysts. She
holds a B.S. in Accounting and an M.B.A. in Finance and International
Business from New York University. Ms. Lee has been designated a
Chartered Financial Analyst.
Ruth Georgeson, Senior Credit Generalist, is responsible for managing the
group's research efforts in Texas, with an emphasis on the utility sector.
Ms. Georgeson joined Texas Commerce Bank in 1990 from Bankers Trust, where
she was a credit analyst. She is a member of the Houston Society of
Financial Analysts, the Association for Investment Management and Research,
and the scholastic honorary society Beta Gamma Sigma. Ms. Georgeson holds
a B.A. in Finance from Schiller International University and an M.B.A. in
Finance from the University of Calgary. She has been designated a
Chartered Financial Analyst.
Deborah Elwood, Research Associate, is responsible for the daily analysis
and research for credit approvals across all sectors. Ms. Elwood joined
Texas Commerce Bank (TCB) in 1996 and has significant accounting
experience. Prior to joining TCB, she performed labor cost analysis for
PanEnergy and payroll tax analysis for Young & Young, a CPA firm. Ms.
Elwood is a member of Beta Gamma Sigma. She holds a B.B.A. in Finance
from the University of Houston. Ms. Elwood is a Level One candidate for
Chartered Financial Analyst designation.
Joe Stassi, Research Associate, is responsible for the daily analysis and
research for credit approvals across many sectors. Mr. Stassi joined
Texas Commerce Bank (TCB) in 1996. Prior to joining TCB, he was a
Retirement Plans Representative at AIM Management Group since 1993. Mr.
Stassi holds a B.S. from the University of Texas, Austin, and an M.B.A. in
Finance from the University of Houston. He is a Level One candidate for
Chartered Financial Analyst designation.
Pamela Hunter, Head of Municipal Investments, is responsible for
overseeing the management of all taxable and tax-exempt municipal
portfolios. She joined Chase Investors Management Corporation in 1980,
providing tax exempt strategy and credit research. In 1984, she moved to
the Private Bank's newly-formed fixed income group as a senior fixed
income group as a senior fixed income portfolio manager. She has managed
individual and corporate accounts as well as mutual funds, and has helped
attract over $5 billion in client assets. Ms. Hunter holds a degree from
Edison State College.
William J. Morgan, Senior Municipal Bond Trader, is responsible for the
execution of tax-exempt bond trades for all mutual fund and institutional
portfolio managers, and for Private Bank trust officers throughout New
York, California, Connecticut, and Florida. Prior to Chase, his positions
included trader at E. F. Hutton & Co., Inc., municipal sales manager at
F. I. duPont and Co., and Underwriter for Pain Webber & Co. Mr. Morgan
received a joint B.S. degree Cum Laude in Economics and Finance from
Georgetown University.
Carolyn J. Gill, Senior Portfolio Manager, is responsible for tax-exempt
separately managed accounts and mutual funds, similar to the position she
has held with The Portfolio Group, Inc., since 1986. She began her career
in municipal finance in 1968 as a budget analyst for the State of Ohio,
where her duties involved bond issuance for the financing of various state
projects. In 1975, Ms. Gill joined National City Bank in Cleveland, where
she managed the bank's $500 million bond portfolio. Ms. Gill received a
B.A. Cum Laude from Ohio State University, and was named the outstanding
M.B.A. student in Finance.
John Kowalski, Municipal Fixed Income Analyst, joined CAM from Chemical
Bank's investment advisory subsidiary, The Portfolio Group, in February
1984. He spent most of his career at TPG on the trading desk with
experience in both the tax-exempt and taxable markets until he transferred
to the credit research area in 1993. Prior to joining TPG, John was a
Financial Analyst with Chemical Bank's World Banking Group. Mr. Kowalski
received a B.S. in Marketing in 1976 and an M.B.A. in Finance in 1983,
respectively, from St. John's University.
John Updegraff, Head of Municipal Credit Analysis, is responsible for
taxable and tax-exempt credit research for all municipal bond funds and
separately managed Private Bank and institutional portfolios. He also
performs tax-exempt bond market analysis. Prior to joining Chase in 1991,
Mr. Updegraff was employed by Strategic Research International. His
municipal research experience includes six years at the First Boston
Corporation in its municipal bond department and six years at Moody's
Investors Service as a research analyst. Mr. Updegraff has a B.S. in
Biology from Washington and Jefferson College.
No officers or directors of CAM or directors of Chase Manhattan Bank
own stock in DK Investors, Inc. Additionally none of the officers or
directors of DK Investors, Inc., own stock in Chase Manhattan Bank,
except Angelo Balafas, who owns a very small interest in Chase Manhattan
Bank stock.
The advisory fee is equal to four tenths (.4) of one percent of the
average daily net asset value of the registrant's assets payable quarter
annually. During the last three years, registrant paid investment
advisory fees to The Portfolio Group of Chemical Bank as follows:
1997 $ 60,696
1996 $ 61,464
1995 $ 61,534
The investment advisor recommends purchases and sales of securities to
the registrant and executes all purchases and sales on behalf of
registrant.
Item 10. Capital Stock, Long Term Debt and Other Securities
a. Registrant has only one class of stock, namely common stock. All
shareholders have one vote for each share of stock owned. There are no
pre-emptive rights, conversion rights or redemptive provisions attaching
to the shares nor are any shares subject to further calls or assessments
by Registrant. Registrant pays quarterly dividends to its shareholders.
The April dividend may include a supplemental dividend with respect to
income earned by Registrant during the prior calendar year. Registrant
does not have a dividend re-investment plan. All stock will share equally
in the event of liquidation.
b. Registrant has no long term debt.
c. Registrant invests solely in Federally Tax Exempt Securities and
distributes at least 90% of its income. All income to Registrant is
Federally Tax exempt (I.R.C. sub-chapter M) and dividends paid to
shareholders retains their tax exempt status.
Registrant is authorized to issue 3,500,000 shares. 1,175,667 of such
shares are presently issued and outstanding. All shares are fully paid
and non-assessable. Registrant has no subsidiaries.
Item 11. Defaults and Arrears
Registrant has not defaulted on any payments nor is it in
arrears with regard to any indebtedness.
Item 12. Legal Proceedings
None
Item 24. Financial Statements and Exhibits Annexed
b) EXHIBIT NUMBER DESCRIPTION
*A. Certificate of Incorporation
and Amendments
*B. By-Laws of Registrant
C. Inapplicable
*D. See Certificate of
Incorporation and Amendments
E. Inapplicable
F. Inapplicable
*G. Copy of Investment Advisory
Agreement
H. Inapplicable
I. Inapplicable
*J. Copy of Custodian Agreement
K. None
L. None
M. None
N. None
O. None
P. None
Q. None
* Incorporated by reference from prior filings by DK Investors, Inc.
Item 27. Persons controlled by or under Common Control of Registrant
None
Item 28. Number of Holders of Securities
(1) (2)
Title of Class Number of Record Holders
Common 211
Item 29. Indemnification
Article 7 of the Business Corporation Law of the State of New
York grants each corporation organized thereunder the power to indemnify
its directors and officers against liability for certain of their acts.
A Restated Certificate of Incorporation was filed with the Secretary of
State, New York State on September 30, 1987. The Certificate provides:
The corporation shall, to the fullest extent permitted
by Article 7 of the Business Corporation Law of the State of
New York, as the same may be amended and supplemented,
indemnify any and all persons whom it shall have power to
indemnify under said Article from and against any and all of
the expenses, liabilities, or other matters referred to in
or covered by said Article, and the indemnification provided
for herein shall not be deemed exclusive of any other rights
to which any person may be entitled under any By-law,
resolution of shareholders, resolution of directors,
agreement, or otherwise, as permitted by said Article as to
action in any capacity in which he served at the request of
the corporation.
Item 31. Location of Accounts and Records
All books of account and corporate records are maintained at the
office of the corporation, 205 Lexington Avenue, New York, NY 10016.
Item 30. Business and Other Connections of Investment Advisor
See Item 9 (e)
Item 32. Management Services
None except as set forth in Part I of this form.
Item 33. Undertakings
Not applicable
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and/or the
Investment Company Act of 1940, the Registrant has duly caused this
registration statement to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of New York, and State of New York,
on the day of , 1998.
Registrant
By
(Signature and Title)
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 15,215,926
<INVESTMENTS-AT-VALUE> 15,288,662
<RECEIVABLES> 299,483
<ASSETS-OTHER> 28,199
<OTHER-ITEMS-ASSETS> 102,074
<TOTAL-ASSETS> 15,718,418
<PAYABLE-FOR-SECURITIES> 103,371
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 245,784
<TOTAL-LIABILITIES> 349,155
<SENIOR-EQUITY> 11,486,799
<PAID-IN-CAPITAL-COMMON> 3,883,077
<SHARES-COMMON-STOCK> 1,175,664
<SHARES-COMMON-PRIOR> 1,175,664
<ACCUMULATED-NII-CURRENT> 24,577
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (1,273,590)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 72,736
<NET-ASSETS> 15,369,263
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 942,481
<OTHER-INCOME> 0
<EXPENSES-NET> 165,403
<NET-INVESTMENT-INCOME> 777,078
<REALIZED-GAINS-CURRENT> (104,260)
<APPREC-INCREASE-CURRENT> (11,876)
<NET-CHANGE-FROM-OPS> 660,942
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (776,561)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (115,619)
<ACCUMULATED-NII-PRIOR> 24,060
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 60,696
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 165,403
<AVERAGE-NET-ASSETS> 15,445
<PER-SHARE-NAV-BEGIN> 13.17
<PER-SHARE-NII> .66
<PER-SHARE-GAIN-APPREC> (.10)
<PER-SHARE-DIVIDEND> .66
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 5.0
<PER-SHARE-NAV-END> 13.07
<EXPENSE-RATIO> 1.08
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
