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<PAGE> PAGE 7
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<PAGE> PAGE 12
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<PAGE> PAGE 13
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028 G040400 48
028 H000400 0
029 000400 N
030 A000400 0
030 B000400 0.00
030 C000400 0.00
031 A000400 0
031 B000400 0
032 000400 0
033 000400 0
045 000400 Y
046 000400 N
047 000400 Y
048 000400 0.000
048 A010400 100000
048 A020400 1.000
048 B010400 0
048 B020400 0.000
048 C010400 0
048 C020400 0.000
048 D010400 0
048 D020400 0.000
048 E010400 0
048 E020400 0.000
048 F010400 0
048 F020400 0.000
048 G010400 0
048 G020400 0.000
048 H010400 0
048 H020400 0.000
048 I010400 0
048 I020400 0.000
048 J010400 0
048 J020400 0.000
048 K010400 100000
048 K020400 1.000
049 000400 N
050 000400 N
051 000400 N
052 000400 N
053 A000400 N
<PAGE> PAGE 22
054 A000400 N
054 B000400 N
054 C000400 N
054 D000400 N
054 E000400 N
054 F000400 N
054 G000400 N
054 H000400 N
054 I000400 N
054 J000400 N
054 K000400 N
054 L000400 N
054 M000400 N
054 N000400 N
054 O000400 N
055 A000400 N
055 B000400 N
056 000400 Y
057 000400 N
058 A000400 N
058 B000400 N
058 C000400 N
058 D000400 N
058 E000400 N
059 000400 Y
060 A000400 Y
060 B000400 N
061 000400 1
062 A000400 N
062 B000400 0.0
062 C000400 0.0
062 D000400 0.0
062 E000400 0.0
062 F000400 0.0
062 G000400 0.0
062 H000400 0.0
062 I000400 0.0
062 J000400 0.0
062 K000400 0.0
062 L000400 0.0
062 M000400 0.0
062 N000400 0.0
062 O000400 0.0
062 P000400 0.0
062 Q000400 0.0
062 R000400 0.0
063 A000400 0
063 B000400 0.0
066 A000400 N
067 000400 N
068 A000400 N
<PAGE> PAGE 23
068 B000400 N
069 000400 N
070 A010400 N
070 A020400 N
070 B010400 N
070 B020400 N
070 C010400 N
070 C020400 N
070 D010400 N
070 D020400 N
070 E010400 N
070 E020400 N
070 F010400 N
070 F020400 N
070 G010400 N
070 G020400 N
070 H010400 N
070 H020400 N
070 I010400 N
070 I020400 N
070 J010400 N
070 J020400 N
070 K010400 N
070 K020400 N
070 L010400 N
070 L020400 N
070 M010400 N
070 M020400 N
070 N010400 N
070 N020400 N
070 O010400 N
070 O020400 N
070 P010400 N
070 P020400 N
070 Q010400 N
070 Q020400 N
070 R010400 N
070 R020400 N
071 A000400 11238
071 B000400 3699
071 C000400 6856
071 D000400 54
072 A000400 8
072 B000400 254
072 C000400 0
072 D000400 0
072 E000400 0
072 F000400 74
072 G000400 8
072 H000400 0
072 I000400 13
<PAGE> PAGE 24
072 J000400 33
072 K000400 0
072 L000400 0
072 M000400 0
072 N000400 12
072 O000400 0
072 P000400 0
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072 R000400 5
072 S000400 6
072 T000400 0
072 U000400 6
072 V000400 0
072 W000400 10
072 X000400 174
072 Y000400 0
072 Z000400 80
072AA000400 0
072BB000400 352
072CC010400 0
072CC020400 501
072DD010400 0
072DD020400 0
072EE000400 0
073 A010400 0.0000
073 A020400 0.0000
073 B000400 0.0000
073 C000400 0.0000
074 A000400 0
074 B000400 0
074 C000400 0
074 D000400 0
074 E000400 0
074 F000400 0
074 G000400 0
074 H000400 0
074 I000400 0
074 J000400 0
074 K000400 0
074 L000400 0
074 M000400 0
074 N000400 0
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074 P000400 0
074 Q000400 0
074 R010400 0
074 R020400 0
074 R030400 0
074 R040400 0
074 S000400 0
074 T000400 0
<PAGE> PAGE 25
074 U010400 0
074 U020400 0
074 V010400 0.00
074 V020400 0.00
074 W000400 0.0000
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074 Y000400 0
075 A000400 0
075 B000400 0
076 000400 0.00
008 A000501 VONTOBEL USA INC
008 B000501 A
008 C000501 801-21953
008 D010501 NEW YORK
008 D020501 NY
008 D030501 10022
015 A000501 BROWN BROTHERS HARRIMAN AND COMPANY
015 B000501 C
015 C010501 BOSTON
015 C020501 MA
015 C030501 02109
015 E010501 X
025 D000501 0
025 D000502 0
025 D000503 0
025 D000504 0
025 D000505 0
025 D000506 0
025 D000507 0
025 D000508 0
028 A010500 1
028 A020500 0
028 A030500 0
028 A040500 27
028 B010500 644
028 B020500 0
028 B030500 0
028 B040500 1
028 C010500 1
028 C020500 0
028 C030500 0
028 C040500 180
028 D010500 0
028 D020500 0
028 D030500 0
028 D040500 23
028 E010500 1
028 E020500 0
028 E030500 0
028 E040500 68
028 F010500 2
<PAGE> PAGE 26
028 F020500 0
028 F030500 0
028 F040500 42
028 G010500 649
028 G020500 0
028 G030500 0
028 G040500 341
028 H000500 0
029 000500 N
030 A000500 0
030 B000500 0.00
030 C000500 0.00
031 A000500 0
031 B000500 0
032 000500 0
033 000500 0
045 000500 Y
046 000500 N
047 000500 Y
048 000500 0.000
048 A010500 100000
048 A020500 1.250
048 B010500 0
048 B020500 0.000
048 C010500 0
048 C020500 0.000
048 D010500 0
048 D020500 0.000
048 E010500 0
048 E020500 0.000
048 F010500 0
048 F020500 0.000
048 G010500 0
048 G020500 0.000
048 H010500 0
048 H020500 0.000
048 I010500 0
048 I020500 0.000
048 J010500 0
048 J020500 0.000
048 K010500 500000
048 K020500 1.000
049 000500 N
050 000500 N
051 000500 N
052 000500 N
053 A000500 N
054 A000500 Y
054 B000500 N
054 C000500 N
054 D000500 N
<PAGE> PAGE 27
054 E000500 N
054 F000500 N
054 G000500 N
054 H000500 Y
054 I000500 N
054 J000500 N
054 K000500 N
054 L000500 N
054 M000500 N
054 N000500 N
054 O000500 Y
055 A000500 N
055 B000500 N
056 000500 Y
057 000500 N
058 A000500 N
058 B000500 N
058 C000500 N
058 D000500 N
058 E000500 N
059 000500 Y
060 A000500 N
060 B000500 N
061 000500 1
062 A000500 Y
062 B000500 0.0
062 C000500 0.0
062 D000500 0.0
062 E000500 0.0
062 F000500 0.0
062 G000500 0.0
062 H000500 0.0
062 I000500 0.0
062 J000500 0.0
062 K000500 0.0
062 L000500 0.0
062 M000500 0.0
062 N000500 0.0
062 O000500 0.0
062 P000500 43.9
062 Q000500 52.4
062 R000500 0.0
063 A000500 0
063 B000500 3.7
064 A000500 N
064 B000500 N
066 A000500 N
067 000500 N
068 A000500 N
068 B000500 Y
069 000500 N
<PAGE> PAGE 28
070 A010500 Y
070 A020500 N
070 B010500 Y
070 B020500 N
070 C010500 Y
070 C020500 N
070 D010500 Y
070 D020500 N
070 E010500 N
070 E020500 N
070 F010500 Y
070 F020500 N
070 G010500 Y
070 G020500 N
070 H010500 Y
070 H020500 N
070 I010500 N
070 I020500 N
070 J010500 Y
070 J020500 N
070 K010500 Y
070 K020500 N
070 L010500 Y
070 L020500 Y
070 M010500 Y
070 M020500 Y
070 N010500 Y
070 N020500 N
070 O010500 Y
070 O020500 N
070 P010500 N
070 P020500 N
070 Q010500 N
070 Q020500 N
070 R010500 N
070 R020500 N
071 A000500 4597
071 B000500 5987
071 C000500 7490
071 D000500 61
072 A000500 12
072 B000500 916
072 C000500 0
072 D000500 0
072 E000500 0
072 F000500 105
072 G000500 18
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<PAGE> PAGE 29
072 L000500 0
072 M000500 0
072 N000500 17
072 O000500 0
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072 R000500 5
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072 V000500 0
072 W000500 22
072 X000500 325
072 Y000500 121
072 Z000500 712
072AA000500 0
072BB000500 1076
072CC010500 0
072CC020500 424
072DD010500 0
072DD020500 0
072EE000500 0
073 A010500 0.0000
073 A020500 0.0000
073 B000500 0.0000
073 C000500 0.0000
074 A000500 0
074 B000500 0
074 C000500 0
074 D000500 9066
074 E000500 0
074 F000500 0
074 G000500 0
074 H000500 0
074 I000500 0
074 J000500 0
074 K000500 0
074 L000500 519
074 M000500 38
074 N000500 9623
074 O000500 0
074 P000500 0
074 Q000500 0
074 R010500 0
074 R020500 0
074 R030500 0
074 R040500 287
074 S000500 0
074 T000500 9336
074 U010500 1005
074 U020500 0
<PAGE> PAGE 30
074 V010500 9.29
074 V020500 0.00
074 W000500 0.0000
074 X000500 138
074 Y000500 0
075 A000500 0
075 B000500 8697
076 000500 0.00
008 A000601 VONTOBEL USA INC
008 B000601 A
008 C000601 801-21953
008 D010601 NEW YORK
008 D020601 NY
008 D030601 10022
015 A000601 BROWN BROTHERS HARRIMAN AND COMPANY
015 B000601 C
015 C010601 BOSTON
015 C020601 MA
015 C030601 02109
015 E010601 X
025 D000601 0
025 D000602 0
025 D000603 0
025 D000604 0
025 D000605 0
025 D000606 0
025 D000607 0
025 D000608 0
028 A010600 0
028 A020600 0
028 A030600 0
028 A040600 8
028 B010600 0
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028 B030600 0
028 B040600 3
028 C010600 0
028 C020600 0
028 C030600 0
028 C040600 47
028 D010600 1
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028 D040600 9
028 E010600 0
028 E020600 0
028 E030600 0
028 E040600 6
028 F010600 1017
028 F020600 0
028 F030600 0
<PAGE> PAGE 31
028 F040600 10
028 G010600 1018
028 G020600 0
028 G030600 0
028 G040600 83
028 H000600 0
029 000600 N
030 A000600 0
030 B000600 0.00
030 C000600 0.00
031 A000600 0
031 B000600 0
032 000600 0
033 000600 0
045 000600 Y
046 000600 N
047 000600 Y
048 000600 0.000
048 A010600 100000
048 A020600 1.250
048 B010600 0
048 B020600 0.000
048 C010600 0
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048 D010600 0
048 D020600 0.000
048 E010600 0
048 E020600 0.000
048 F010600 0
048 F020600 0.000
048 G010600 0
048 G020600 0.000
048 H010600 0
048 H020600 0.000
048 I010600 0
048 I020600 0.000
048 J010600 0
048 J020600 0.000
048 K010600 500000
048 K020600 1.000
049 000600 N
050 000600 N
051 000600 N
052 000600 N
053 A000600 Y
054 A000600 Y
054 B000600 N
054 C000600 N
054 D000600 N
054 E000600 N
054 F000600 N
<PAGE> PAGE 32
054 G000600 N
054 H000600 Y
054 I000600 N
054 J000600 N
054 K000600 N
054 L000600 N
054 M000600 N
054 N000600 N
054 O000600 Y
055 A000600 N
055 B000600 N
056 000600 Y
057 000600 N
058 A000600 N
058 B000600 N
058 C000600 N
058 D000600 N
058 E000600 N
059 000600 Y
060 A000600 Y
060 B000600 Y
061 000600 1
062 A000600 N
062 B000600 0.0
062 C000600 0.0
062 D000600 0.0
062 E000600 0.0
062 F000600 0.0
062 G000600 0.0
062 H000600 0.0
062 I000600 0.0
062 J000600 0.0
062 K000600 0.0
062 L000600 0.0
062 M000600 0.0
062 N000600 0.0
062 O000600 0.0
062 P000600 0.0
062 Q000600 0.0
062 R000600 0.0
063 A000600 0
063 B000600 0.0
066 A000600 Y
066 B000600 N
066 C000600 Y
066 D000600 N
066 E000600 N
066 F000600 N
066 G000600 N
067 000600 N
068 A000600 N
<PAGE> PAGE 33
068 B000600 N
069 000600 N
070 A010600 Y
070 A020600 N
070 B010600 Y
070 B020600 N
070 C010600 Y
070 C020600 N
070 D010600 Y
070 D020600 N
070 E010600 N
070 E020600 N
070 F010600 Y
070 F020600 N
070 G010600 Y
070 G020600 N
070 H010600 Y
070 H020600 N
070 I010600 N
070 I020600 N
070 J010600 Y
070 J020600 Y
070 K010600 Y
070 K020600 Y
070 L010600 Y
070 L020600 Y
070 M010600 Y
070 M020600 Y
070 N010600 Y
070 N020600 N
070 O010600 Y
070 O020600 N
070 P010600 N
070 P020600 N
070 Q010600 N
070 Q020600 N
070 R010600 N
070 R020600 N
071 A000600 10035
071 B000600 2612
071 C000600 2037
071 D000600 128
072 A000600 12
072 B000600 0
072 C000600 22
072 D000600 0
072 E000600 0
072 F000600 17
072 G000600 0
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072 I000600 7
<PAGE> PAGE 34
072 J000600 83
072 K000600 0
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072 R000600 5
072 S000600 2
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072 U000600 14
072 V000600 0
072 W000600 19
072 X000600 145
072 Y000600 95
072 Z000600 -28
072AA000600 166
072BB000600 1
072CC010600 295
072CC020600 0
072DD010600 0
072DD020600 0
072EE000600 0
073 A010600 0.0000
073 A020600 0.0000
073 B000600 0.0000
073 C000600 0.0000
074 A000600 2276
074 B000600 0
074 C000600 0
074 D000600 0
074 E000600 0
074 F000600 9428
074 G000600 0
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074 J000600 59
074 K000600 0
074 L000600 212
074 M000600 49
074 N000600 12024
074 O000600 1041
074 P000600 16
074 Q000600 0
074 R010600 0
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074 R030600 0
074 R040600 21
074 S000600 0
074 T000600 10946
<PAGE> PAGE 35
074 U010600 1130
074 U020600 0
074 V010600 9.69
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074 X000600 158
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075 A000600 0
075 B000600 1659
076 000600 0.00
SIGNATURE JOHN PASCO, III
TITLE CHAIRMAN
Index of Exhibits
Exhibit A: Financial Data Schedules
Exhibit B: Report of Independent Certified Public Accountants on
Internal Control Structure
Exhibit C: Reorganization Document Vontobel International Bond Fund
and Vontobel Eastern European Debt Fund
Exhibit D: Name Change Document Vontobel Emerging Markets Equity Fund
[ARTICLE] 6
<TABLE>
<S> <C> <C> <C> <C>
<C>
[PERIOD-TYPE] 12-MOS 12-MOS 12-MOS 8-MOS
12-MOS
[FISCAL-YEAR-END] DEC-31-1999 DEC-31-1999 DEC-31-1999 DEC-31-1999
DEC-31-1999
[PERIOD-END] DEC-31-1999 DEC-31-1999 DEC-31-1999 DEC-31-1999
DEC-31-1999
[INVESTMENTS-AT-COST] 33118980 105771921 66737087 0
9950308
[INVESTMENTS-AT-VALUE] 32182181 190447547 59381914 0
8982262
[RECEIVABLES] 1781290 930838 894894 0
519005
[ASSETS-OTHER] 15862 25010 16317 0
37752
[OTHER-ITEMS-ASSETS] 0 0 0 0
0
[TOTAL-ASSETS] 33979397 192808993 71795122 0
9622399
[PAYABLE-FOR-SECURITIES] 0 0 0 0
0
[SENIOR-LONG-TERM-DEBT] 0 0 0 0
0
[OTHER-ITEMS-LIABILITIES] 335373 271702 315233 0
286451
[TOTAL-LIABILITIES] 335373 271702 315233 0
286451
[SENIOR-EQUITY] 0 0 0 0
0
[PAID-IN-CAPITAL-COMMON] 81039090 107394892 81671547 0
10382050
[SHARES-COMMON-STOCK] 3610860 6873275 5009490 0
1005110
[SHARES-COMMON-PRIOR] 4045198 7853103 7932066 0
0
[ACCUMULATED-NII-CURRENT] 0 0 0 0
(1046102)
[OVERDISTRIBUTION-NII] 0 0 0 0
0
[ACCUMULATED-NET-GAINS] 0 0 0 0
0
[OVERDISTRIBUTION-GAINS] 0 0 0 0
0
[ACCUM-APPREC-OR-DEPREC] (47395066) 85142399 (10191484) 0
0
[NET-ASSETS] 33644024 192537291 71480063 0
9335948
[DIVIDEND-INCOME] 280571 1996668 1753518 0
0
[INTEREST-INCOME] 0 123742 1223444 0
915999
[OTHER-INCOME] 0 0 0 0
0
[EXPENSES-NET] 1009850 2078793 2447935 0
203584
[NET-INVESTMENT-INCOME] (729279) 41617 529027 0
712415
[REALIZED-GAINS-CURRENT] (20580372) 24547677 (2836311) 0
(1075953)
[APPREC-INCREASE-CURRENT] 4359209 66109706 (18597297) 0
(1499879)
[NET-CHANGE-FROM-OPS] 3629930 66151323 (20904581) 0
(787464)
[EQUALIZATION] 0 0 0 0
0
[DISTRIBUTIONS-OF-INCOME] 0 345700 725107 0
0
[DISTRIBUTIONS-OF-GAINS] 0 8366747 0 0
0
[DISTRIBUTIONS-OTHER] 0 0 0 0
0
[NUMBER-OF-SHARES-SOLD] 1024124 11858769 1958018 0
80625
[NUMBER-OF-SHARES-REDEEMED] 1864214 13362079 8975932 0
490700
[SHARES-REINVESTED] 0 351845 44006 0
643554
[NET-CHANGE-IN-ASSETS] (6139848) (26834678) (107353117) 0
2241527
[ACCUMULATED-NII-PRIOR] 0 0 0 0
0
[ACCUMULATED-GAINS-PRIOR] 0 0 0 0
0
[OVERDISTRIB-NII-PRIOR] 0 0 0 0
0
[OVERDIST-NET-GAINS-PRIOR] 0 0 0 0
0
[GROSS-ADVISORY-FEES] 387669 1474217 1224969 0
104623
[INTEREST-EXPENSE] 0 0 0 0
0
[GROSS-EXPENSE] 1044172 2089344 2447935 0
325029
[AVERAGE-NET-ASSETS] 31014000 162949000 130802000 0
8697000
[PER-SHARE-NAV-BEGIN] 8.14 20.18 16.73 0
10.21
[PER-SHARE-NII] (.20) .06 .07 0
.71
[PER-SHARE-GAIN-APPREC] 1.38 9.07 (2.42) 0
(1.63)
[PER-SHARE-DIVIDEND] 0 .05 .11 0
0
[PER-SHARE-DISTRIBUTIONS] 0 1.25 0 0
0
[RETURNS-OF-CAPITAL] 0 0 0 0
0
[PER-SHARE-NAV-END] 9.32 28.01 14.27 0
9.29
[EXPENSE-RATIO] 3.26 1.27 1.87 0
2.49
[AVG-DEBT-OUTSTANDING] 0 0 0 0
0
[AVG-DEBT-PER-SHARE] 0 0 0 0
0
</TABLE>
[ARTICLE] 6
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] DEC-31-1999
[PERIOD-END] DEC-31-1999
[INVESTMENTS-AT-COST] 9379502
[INVESTMENTS-AT-VALUE] 9428127
[RECEIVABLES] 270324
[ASSETS-OTHER] 12201
[OTHER-ITEMS-ASSETS] 37017
[TOTAL-ASSETS] 12023993
[PAYABLE-FOR-SECURITIES] 1040541
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 37216
[TOTAL-LIABILITIES] 1077757
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 11450679
[SHARES-COMMON-STOCK] 1129696
[SHARES-COMMON-PRIOR] 193897
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 48646
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] (553089)
[NET-ASSETS] 10946236
[DIVIDEND-INCOME] 22351
[INTEREST-INCOME] 0
[OTHER-INCOME] 0
[EXPENSES-NET] 50449
[NET-INVESTMENT-INCOME] (28098)
[REALIZED-GAINS-CURRENT] 164135
[APPREC-INCREASE-CURRENT] 461290
[NET-CHANGE-FROM-OPS] 433192
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 0
[DISTRIBUTIONS-OF-GAINS] 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 1033591
[NUMBER-OF-SHARES-REDEEMED] 124308
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 8902313
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 20888
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] 150104
[AVERAGE-NET-ASSETS] 1659000
[PER-SHARE-NAV-BEGIN] 7.31
[PER-SHARE-NII] .02
[PER-SHARE-GAIN-APPREC] 2.40
[PER-SHARE-DIVIDEND] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 9.69
[EXPENSE-RATIO] 3.01
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
ON INTERNAL CONTROL STRUCTURE
The Board of Directors
The Vontobel Funds
Richmond, Virginia
In planning and performing our audits of the financial statements of Vontobel
U.S. Value Fund, Vontobel Eastern European Equity Fund, Vontobel U.S. Equity
Fund, Vontobel Greater European Bond Fund and Vontobel International Equity Fund
(the "Funds"), each a series of shares of The Vontobel Funds, Inc., for the
periods ended December 31, 1999, we considered their internal control structure,
including procedures for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, not to provide
assurance on the internal control structure.
The management of the Funds is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of internal control structure policies and procedures. Two of the
objectives of an internal control structure are to provide management with
reasonable, but not absolute, assurance that assets are safeguarded against loss
from unauthorized use or disposition, and that transactions are executed in
accordance with management's authorization and recorded properly to permit
preparation of financial statements in conformity with generally accepted
accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that it may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce to
a relatively low level the risk that errors or irregularities in amounts that
would be material in relation to the financial statements being audited may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses, as defined above, as of
December 31, 1999.
This report is intended solely for the information and use of management and the
Securities and Exchange commission, and should not be used for any other
purpose.
Tait, Weller and Baker
Philadelphia, Pennsylvania
January 20, 2000
As filed with the Securities and Exchange Commission on August 2, 1999
File No.: 333-82107
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-14
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
[ ] Pre-Effective Amendment No. [ ] Post-Effective Amendment No.
(Check appropriate box or boxes)
VONTOBEL FUNDS, INC. (800) 527-9500
- --------------------------------------------------------------------------------
Exact Name of Registrant as Specified in Charter Area Code and Telephone
No.
1500 FOREST AVENUE, SUITE 223, RICHMOND, VIRGINIA 23229
- --------------------------------------------------------------------------------
Address of Principal Executive Offices: (Number, Street, City, State, Zip
Code)
Approximate Date of
Proposed Public Offering: As soon as practicable after this
Registration Statement becomes effective under the
Securities Act of 1933 and the reorganization is
approved by shareholders.
Name and Address
of Agent for service: John Pasco, III
Commonwealth Shareholder Services, Inc.
1500 Forest Avenue, Suie 223
Richmond, Virginia 23229
- --------------------------------------------------------------------------------
Copies to: Steven M. Felsenstein, Esquire
Stradley, Ronon, Stevens & Young, LLP
2600 One Commerce Square
Philadelphia, PA 19103
- --------------------------------------------------------------------------------
title of Securities Being Registered: Shares of Common Stock of the Vontobel
Eastern European Debt Fund series
of the Registrant
No filing fee is due because of reliance on Section 24(f) of the Investment
Company Act of 1940. Pursuant to Rule 429(a), this Registration Statement
relates to shares previouly registered on Form N-1A (Securities Act of 1933 File
No. 2-78931; Investment Company Act of 1940 File No. 811-3551)
It is proposed that this filing will become effective upon acceleration by the
Commission at the earliest possible time.
<PAGE>
VONTOBEL INTERNATIONAL BOND FUND
A SERIES OF VONTOBEL FUNDS, INC.
Dear Shareholder:
Enclosed is a Notice of a Special Meeting of Shareholders of the Vontobel
International Bond Fund. The Special Meeting has been called for August 24, 1999
at 10:00 a.m., at the offices of the Fund, located at 1500 Forest Avenue,
Richmond Virginia, Suite 223. The accompanying Combined Proxy
Statement/Prospectus describes a proposal to reorganize your Fund. To avoid
having your fund incur the expense and delay of further solicitations, we ask
you to give your prompt attention to this proposal, and vote by sending in the
enclosed proxy card.
PLEASE TAKE A MOMENT TO FILL OUT, SIGN AND RETURN THE ENCLOSED PROXY CARD NOW.
This meeting is very important to your Fund. You are being asked to consider and
approve a Plan of Reorganization which would result in the exchange of your
shares in the Vontobel International Bond Fund (the "Bond Fund") for those of a
separate fund presently called the Vontobel Eastern European Debt Fund (the
"Debt Fund"). Each of these Funds is managed by Vontobel USA Inc. (the
"Advisor"). If the proposal is approved, on the date of the exchange you will
receive shares in the Debt Fund equal in value to your shares of the Bond Fund
at that time. Prior to the date of the reorganization the Debt Fund will be
revising certain of its investment strategies to permit the Debt Fund to invest
in debt instruments issued by countries throughout Europe.
The transaction is being recommended by the Board of Directors of the
Funds
for three reasons: 1) cost-effectiveness; 2) the impact of advent of Euro;
and,
3) both funds seek the same investment objective, which is to seek to maximize
total return from capital growth and income.
Please take the time to review this document and vote now. To ensure that your
vote is counted, indicate your position on the enclosed proxy card. Sign and
return your card promptly. If you determine at a later date that you wish to
attend this meeting, you may revoke your proxy and vote in person.
Thank you for your attention to this matter.
Sincerely,
/s/ John Pasco, III
Chairman
<PAGE>
VONTOBEL FUNDS, INC.
1500 Forest Avenue, Suite 223
Richmond, Virginia 23229
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS OF
VONTOBEL INTERNATIONAL BOND FUND
To Be Held On August 24, 1999
To the Shareholders:
NOTICE IS HEREBY GIVEN that a Special Meeting of Shareholders of the Vontobel
International Bond Fund (the "Bond Fund") series of Vontobel Funds, Inc. (the
"Company"), will be held at the offices of the Company at 1500 Forest
Avenue,
Richmond, Virginia, Suite 223 on August 24, 1999, at 10:00 a.m. for the
following reasons:
To approve or disapprove a Plan of Reorganization providing for
the
transfer of substantially all of the assets of the Bond Fund to
the
Vontobel Eastern European Debt Fund series (the "Debt Fund") of
the
Company, in exchange for shares of the Debt Fund, followed by
the
distribution of such shares to the shareholders of the Bond Fund, and
the
liquidation of the Bond Fund.
To transact any other business as may properly come before the
Special
Meeting or any adjournment thereof.
The transaction contemplated by the Plan of Reorganization is described in the
attached Combined Proxy Statement/Prospectus. A copy of the Plan of
Reorganization is attached as Exhibit A thereto and information about the Debt
Fund is also attached.
Shareholders of record as of the close of business on August 3, 1999, are
entitled to notice of, and to vote at, the Special Meeting or any adjournment
thereof.
By Order of the Board of Directors,
John Pasco III
Chairman
August 4, 1999
The Board of Directors urges you to complete, date, sign and return the enclosed
proxy card(s) in the enclosed postage-paid return envelope. It is important that
you return your signed proxy promptly so that a quorum may be ensured. If you
attend the meeting, you may vote your shares in person.
<PAGE>
VONTOBEL FUNDS, INC.
VONTOBEL INTERNATIONAL BOND FUND SERIES
SPECIAL MEETING OF SHAREHOLDERS - AUGUST 24, 1999
The undersigned hereby revokes all previous proxies for shares and appoints John
Pasco, III and Darryl Peay, and each of them proxies of the undersigned, with
full power of substitution, to vote all shares of the Vontobel International
Bond Fund which the undersigned is entitled to vote at the Fund's Special
Meeting of Shareholders to be held at the offices of the Fund, 1500 Forest
Avenue, Richmond, Virginia, at 10:00 a.m. Eastern Time on the 24th day of
August, 1999, including any adjournments thereof, upon such business as may
legally be brought before the Meeting.
PLEASE SIGN AND PROMPTLY RETURN IN THE ACCOMPANYING ENVELOPE. NO
POSTAGE
REQUIRED IF MAILED IN THE U.S.
THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF DIRECTORS. IT WILL
BE
VOTED AS SPECIFIED. IF NO SPECIFICATION IS MADE, THIS PROXY SHALL BE
VOTED
IN FAVOR OF PROPOSAL NO. 1 AND WITHIN THE DISCRETION OF THE PROXYHOLDERS
AS
TO ANY OTHER ITEMS WHICH MAY PROPERLY COME BEFORE THE MEETING.
No. 1. To approve a Plan of Reorganization providing for the transfer of
substantially all of the assets of the Vontobel International Bond Fund (the
"International Bond Fund") to the Vontobel Eastern European Debt Fund (the "Debt
Fund") series of the Company, in exchange for shares of the Debt Fund, to be
followed by the distribution of such shares to the shareholders of the Bond
Fund, and the liquidation of the Bond Fund.
FOR [ ] AGAINST [ ] ABSTAIN [ ]
In their discretion, the Proxyholders are authorized to vote upon such other
matters as may legally come before the Meeting or any adjournment thereof.
- ----------------------------- ------------------------- ---------------------
Signature Signature (Joint Owner) Date
<PAGE>
COMBINED PROXY STATEMENT/PROSPECTUS
Dated August 4, 1999
Proposal for the Acquisition of the assets of the Vontobel International Bond
Fund by, and in exchange for shares of, the Vontobel Eastern European Debt
Fund (each a series of Vontobel Funds, Inc.)
This Combined Proxy Statement/Prospectus is being furnished to you by the Board
of Directors (the "Board") of Vontobel Funds, Inc., a registered open-end
investment company (the "Company"). The Board is recommending that shareholders
approve a proposed reorganization of the Vontobel International Bond Fund (the
"Bond Fund") into the Vontobel Eastern European Debt Fund (the "Debt Fund"). The
Funds are separate series of the Company and each is managed by Vontobel USA
Inc. (the "Advisor"). Prior to the date of the reorganization the Debt Fund will
be revising certain of its investment strategies to permit the Debt Fund to
invest in debt instruments issued by countries throughout Europe.
The transaction is recommended by the Board for three reasons: 1)
Cost-effectiveness: The Board has concluded that the size of the Bond Fund will
make it difficult to achieve desired investment returns for shareholders due in
part to the proportionally higher expenses of operating a small fund. The
Advisor has been voluntarily waiving its advisory fees and reimbursing Bond Fund
expenses in order to limit total annual operating expenses. This voluntary
arrangement for the benefit of the Bond Fund has expired. However, the Advisor
has entered into an expense limitation agreement with the Company to limit the
total operating expenses for the Debt Fund through May 1,2001. Although the Bond
fund had a lower expense ratio during its last fiscal year, it is now smaller
than it was at that time, and would have a higher expense ratio in the future.
Therefore, the Board has concluded that in the future the operating expenses of
the Debt Fund will be proportionally lower than the expenses of the Bond Fund if
it continued in operation. 2) Impact of advent of Euro on the Debt Fund's
diversification: Since its inception in 1994, the Bond Fund has invested a
substantial portion of its assets in instruments denominated in the major
European currencies, which provided an opportunity for liquidity and effective
pricing. These instruments, which presently comprise most of the Bond Fund's
portfolio, are now denominated in the Euro, which is the new currency of the
European Union. Investments in eastern european debt instruments will therefore
offer an opportunity for the Debt Fund to hold investments denominated in
currencies other than the Euro. The Board has concluded that the shareholders
will benefit from this effect if the Bond Fund is consolidated into the Debt
Fund, to be renamed Vontobel Greater European Bond Fund ("Greater European Bond
Fund"). Thus, shareholders will maintain their exposure to the major fixed
income markets in Europe, which are denominated in the Euro, while benefitting
from the convergence effect on the debt instruments of the developing markets of
Europe as they bring their fiscal and monetary policies into alignment with
those of the European Union; and, (3) Compatibility of investment objective: The
Board believes that consolidation of the Bond Fund into the larger Debt Fund
will continue to provide the benefits of the international fixed income
strategies developed by the Advisor since both funds share the same investment
objective: to maximize total return from capital growth and income.
All proxies received by the time of the Special Meeting will be voted at a
Special Meeting of Shareholders called to consider a Plan of Reorganization (the
"Plan"), which provides for the transfer of substantially all of the Bond Fund's
assets to the Debt Fund. Following the transfer, the Bond Fund's shareholders
will receive shares of the Debt Fund having a net asset value equal to the net
asset value of their shares of the Bond Fund at the time of the transaction, and
the Bond Fund will cease to exist.
VONTOBEL FUNDS, INC.
1500 Forest Avenue, Suite 223, Richmond, Va. 23229
804-285-8211 * 800-527-9500 * 804-285-8251 (fax)
VIA EDGAR
December 27, 1999
Filing Desk
U.S. Securities & Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
RE: Vontobel Funds, Inc.
File Number 2-78931
Filing Pursuant to Rule 497(e)
Gentlemen:
Transmitted herewith for electronic filing, please find enclosed, pursuant
to Rule 497(e) a copy of the Supplements to the Prospectus and Statement of
Additional Information for Vontobel Funds, Inc. These supplements affect only
the Vontobel Emerging Markets Equity Fund.
These Supplements dated December 27, 1999 to the Prospectus dated August
30, 1999 and the Statement of Additional Information dated August 30, 1999
advise shareholders of Vontobel Funds, Inc. of the name change for the Vontobel
Emerging Markets Equity Fund (the "Fund"). The new name for this Fund is the
Vontobel U.S. Equity Fund. The investment objctive for the Fund will remain the
same, but the policies and strategies designed to achieve the objective will
change.
Should you have any questions or require additional information, please
contact the undersigned.
Sincerely,
/s/ Darryl S. Peay
Darryl S. Peay
Assistant Secretary
