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 # 19
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, 1998
Quarter ended March 31, 1998 13.16 13.01
Quarter ended June 30, 1998 13.11 12.99
Quarter ended September 30, 1998 13.12 13.01
Quarter ended December 31, 1998 13.13 12.99
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
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, 1998, the portfolio
turnover rate was 27.0%; for the fiscal year ended December 31, 1997,
the turnover rate was 29.9%. The drop in interest rates during 1998 and
the gyrations of the stock market have caused may of the bonds owned by
the Company to be called. These bonds have been replaced with bonds
paying a lower rate of interest. Our investment advisor has recommended
to the Board of Directors that the Company ladder its investments by
structuring its portfolio so that one-third is invested in bonds maturing
within five (5) years and the two-thirds balance be invested in bonds
maturing in six (6) to ten (10) years. It is believed that this strategy
will help DK Investors, Inc., attain the highest rate of return while
still adhering to its stated 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:
1998 - None
1997 - None
1996 - None
1998 - None
1997 - None
1996 - None
1998 - None
1997 - None
1996 - 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 Bank. 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 1998.
c) Not applicable.
d) Not applicable.
e) Not applicable.
Item 9. Management
a) Control Persons and Principal Holders of Securities
As of December 31, 1998, 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
Glenn O. Thornhill 156,076 13.27
Stonewall Forest (all owned of
record)
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
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 dated January 24, 1985, own 8,406 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 1,577 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 4,665
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
505 East 79th Street Director at Salomon Smith Barney
New York, New York
Harry Nadler* Director and Involved in Real
388 Clayton Road Secretary 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, NY 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, NY
Andrew Brucker Director and An attorney (Partner
350 Fifth Avenue Vice-President in the firm of
New York, NY Schechter, Brucker) and a
Director since 1993.
Francine Yellon Director Housewife and daughter
525 West 235th Street of Leon and Ann Nadler.
Bronx, NY 10463 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 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 9.27 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.
Senior Management of Chase Asset Management, Inc. (CAM)
Deborah L. Duncan, Executive Vice President of The Chase Manhattan
Corporation, has responsibility for managing the company's Global Asset
Management and Mutual Funds organization. The mission of this organization
is to develop, distribute and manage investment products that meet the needs
of Chase's clients from around the world, including wealthy individuals,
mutual funds investors, corporations, and institutions.
Ms. Duncan is also a member of the corporation's Policy Council, a 25-
member group that works to review corporate and financial performance,
communicate and share information on corporate issues, and provide input
on broad policy and strategic issues.
Ms. Duncan joined Chase in 1979 and has served in a variety of increasingly
responsible managerial and administrative positions in Chase offices around
the world. Most recently, she served as Chase's corporate treasurer and
senior executive responsible for all external reporting, accounting, taxes
and insurance. Prior to that position, she served as co-head of Chase's
global markets business with responsibility for worldwide trading
activities. Other assignments during her 19-year career at Chase include:
Western Hemisphere treasurer; treasurer of individual banking; treasurer
of Chase Tokyo; manager of derivative products--Asia; Asian treasury
coordinator; and financial analyst for Europe and Asia. Ms. Duncan was
appointed a senior vice president in 1991 and an executive vice president
in 1994.
Ms. Duncan is a member of the board of directors of both the United Way of
Tri-State and the YMCA of Greater New York. In 1997, she managed Chase's
United Way campaign, which raised almost $7 million in contributions from
employees--an 18% increase over the previous year.
Ms. Duncan holds a B.A. in Economics from Smith College and an M.S. in
Accounting from the Leonard N. Stern School of Business at New York
University. She lives in New York City.
Sarah E. Jones is Managing Director of Sales and Marketing for Global Asset
Management and Mutual Funds. In these capacities, she is responsible for
the management of Chase's global mutual fund group encompassing Vista
Mutual Funds, Chase Manhattan Vista Funds, and Chase Funds.
Prior to joining Chase's global mutual group, Ms. Jones was Managing
Director for the Global Asset Management and Private Banking Division of
The Chase Manhattan Bank. Responsible for Private Investor Advisory
Services, Planning Services, Private Capital Investing, and its wholly-
owned discount brokerage subsidiary, Brown & Co., Ms. Jones joined Chase's
merger partner, Chemical Bank, in 1977. At Chemical, she held increasingly
responsible positions, most recently serving as Chief of Staff for
Relationship Banking, a key unit encompassing Middle Market Banking,
GeoServe, and the former Chemical New Jersey.
Previously, Ms. Jones was President and Chief Operating Officer of Chemical
Technologies Corporation, a 350-employee company. The company's
subsidiaries included a leading payroll processor, ECS, Inc., which was
subsequently sold to ADP, and a private labeler of corporate banking
services to financial institutions worldwide, BankLink, Inc., which was
subsequently sold the FISERV. Among her other accomplishments at Chemical,
she was Director of ChemLink, where she conceived, developed and
implemented innovative cash management and investment programs for
corporate clients worldwide. Prior to joining Chemical, Ms. Jones was an
Operations Consultant at Citibank and a Systems Analyst at Liberty Mutual.
In addition to having earned an M.B.A. in Finance from the Wharton School of
Business and a B.A. in Economics from Smith College, she completed Harvard
University's Advanced Management Program in 1994.
Among her other achievements, Ms. Jones was a chairperson of the Domestic
Money Transfer subcommittee of the New York Clearing House. She was
selected for the David Rockefeller Fellows Program for 1996-1997, wherein
she is actively involved with other corporate executives in the New York
City Partnership, a public/private group dedicated to the future of New
York City. She was a 1993 honoree of the YWCA Academy of Women Achievers
and a volunteer Associate Professor at Queens College.
Mark Richardson is Chase Asset Management's Chief Investment Officer. Mr.
Richardson is responsible for coordinating Chase's global investment
strategy for institutional and mutual fund investors. Prior to joining
Chase in 1992, Mr. Richardson was the Senior Investment Officer at the
Olayan Group in London. Prior to that, he spent 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 is Chase Asset Management's Chief Operating Officer.
Mr. Prostano is responsible for the finance, risk management, internal
controls and compliance, performance measurement, and administration
activities. Prior to joining Chase in 1993, 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 with 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.
Donald Fine, Chief Market Analyst and Marketing Director, is responsible
for the firm's economic and market analysis. He has 30 years of financial
market experience at Chase, and specializes in the analysis and forecasting
of economic and interest rate trends. Mr. Fine is frequently quoted in the
media as an informational source, and is a sought-after speaker for
presentations on the economic outlook and Federal Reserve policy. 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.
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 been active in the asset management
business since 1978, 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 Asia. She holds a degree in Music from the Juilliard School of
Music, a 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 began his career in 1979 and has spent most of his
time in the development of fixed income and mortgage securities modeling
at Morgan Stanley and Smith Barney. Prior to CAM, he was at Hyperion
Capital Management for three years, 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 Trader, supports mutual fund,
institutional and Private Bank portfolio managers in trade executions.
Most recently, he was a fixed income manager for international
institutional 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 Taxable Core Investment Group, is also
manager of the short-term and LIBOR based investment portfolios, and
directs the firm's futures and options strategies. Mr. Neumann has been
active in the asset management business since 1984, with experience in
both managing and trading fixed income portfolios. He was most recently
at 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, 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
Institutional Investment Advisory, and his investment 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 Economics from Georgetown University and an 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/intermediate and aggregate
core fixed income institutional portfolios and mutual funds. Mr. Russell
joined Chase in 1990 and has held trading and analyst 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, Senior Portfolio Manager, 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 since 1993. 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.
Scott L. Shiffman, CFA, Head of Core Taxable Credit Research, is in charge
of overseeing the firm's taxable credit research process. Mr. Shiffman
joined CAM in 1998 from Schroeder Capital Management, where he was
responsible for both short and long term global credit research. Prior to
that, he was a senior audit and equity analyst at Midlantic Bank since
1993. In addition, Mr. Shiffman is a Chartered Financial Analyst and is
a member of the Association for Investment Management and Research and the
New York Society of Security Analysts. He holds a B.S. degree in Economics
from Rutgers University as well as an M.B.A. in Finance from Rutgers
University's Graduate School of Management.
R. Russell Hurst, Structured Investment Group, joined the bank in 1995 with
experience in credit analysis since 1978. 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 Investors 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. Mr. DeAlto 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 Economics and Accounting, and did his graduate work
at New York University's Stern School of Business.
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.
Leonard Lovito, Senior Portfolio Manager, is also responsible for the
development of the firm's corporate investment strategies. Mr. Lovito
joined Chase in 1998 from J & W Seligman & Co. Inc., where he was a
Portfolio Manager for a number of fixed income institutional portfolios
and mutual funds since 1984. Prior to joining Seligman, Mr. Lovito was in
the Investment Department of the Dime Savings Bank of New York. He
received a B.A. in Economics and an M.B.A. from Fordham University.
Thomas M. Nelson, Head of Short Term Investments, is responsible for
overseeing the management of the Vista money market funds, as well as the
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 Chase in 1987 as a portfolio manager and trader for individual fixed
income accounts. He received his B.A. from Duke 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, Assistant Vice President, manages the Vista 100% U.S.
Treasury Money Market Fund and Vista Treasury Plus Money Market Funds and
U.S. Government Money Market Fund. Previously, he held a similar position
at The Portfolio Group, Inc., where he managed taxable 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, Ms.
Tapia 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.
Timothy R. Wilson, Senior Industrial Analyst, is responsible for analyzing
and reviewing all domestic and foreign short-term industrial issuers.
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.
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 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 in Business Administration 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 Paine Webber & Co. Mr. Morgan received
a joint B.S. degree cum laude in Economics and Finance from Georgetown
University.
Richard Taormina, Municipal Portfolio Manager and Municipal Portfolio
Analyst, is responsible for managing municipal mutual funds and
institutional fixed income accounts. He is also responsible for
quantitative analysis. He began his career as a Certified Financial
Planner at Financial Advisory Group, where he was an investment analyst.
Prior to joining Chase in 1997, Mr. Taormina was the senior trader at
The Vanguard Group of Investment Companies. He has a B.A. in Economics
from the University of Delaware and an M.B.A. from Wilmington College.
Carolyn J. Gill, Senior Portfolio Manager, is responsible for tax-exempt
separately managed accounts and mutual funds, a similar 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 J. 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 and an M.B.A. in Finance from St. John's
University in 1976 and 1983, respectively.
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.
M. May Lee, CFA, Senior Financial Institutions Analyst of Short-Term Credit
Research, analyzes and reviews domestic and foreign financial institutions,
including sovereign credits. She joined the Bank in 1997 with ten years
of credit experience. Prior to joining Chase, Ms. Lee held analyst
positions in the Banking Group at Moody's Investors Service and the
Strategic Planning Group at Philip Morris in Asia. She holds a B.S. in
Accounting and an M.B.A. in Finance and International Business from New
York University. Ms. Lee is also a member of the New York Society of
Security Analysts, The Association for Investment Management and Research,
and the International Society of Financial Analysts.
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 Chase Asset Management as follows:
1998 $ 45,379
1997 $ 60,696
1996 $ 61,464
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 , 1999.
Registrant
By
(Signature and Title)
