MULTIPLE INDEX TRUST
TREASURIES TRUST
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(804) 846-1361
(800) 544-6060
API Trust (the "Trust") is an open-end, management investment company. This
Prospectus offers the Consultants Class of shares of the Multiple Index Trust
and the Treasuries Trust (each a "Fund" and collectively, the "Funds"), each a
separately managed, diversified portfolio of the Trust.
MULTIPLE INDEX TRUST -- This Fund's investment objective is to maximize
total return from capital growth and income. The Fund seeks to achieve its
objective by investing at least 65% of its total assets in shares of other
open-end investment companies ("underlying funds") whose portfolios mirror those
of one index or another of market securities. An investor in the Fund will bear
not only his proportionate share of the expenses of the Fund but also,
indirectly, similar expenses of the underlying funds.
TREASURIES TRUST -- This Fund's investment objective is to seek current
income while limiting credit risk. The Fund seeks to achieve its objective by
investing in obligations of the U.S. Treasury that are guaranteed as to
principal and interest by the full faith and credit of the U.S. Government.
No assurance can be given that either Fund will achieve its investment
objective.
Shares of the Funds are offered through Yorktown Distributors, Inc.
("Distributors"). Each Fund's minimum initial investment is $5,000; subsequent
investments must be at least $1,000.
This Prospectus sets forth concisely the information about the Trust and
the Funds that a prospective investor should know before investing. It should be
read and retained for future reference. A Statement of Additional Information,
dated June 1, 1997, has been filed with the Securities and Exchange Commission
and, as amended from time to time, is incorporated by reference herein. It is
available, at no charge, by contacting the Trust at the address or telephone
numbers provided above.
FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR ENDORSED OR GUARANTEED
BY, ANY BANK, NOR ARE THEY FEDERALLY INSURED OR OTHERWISE PROTECTED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
This Prospectus is dated June 1, 1997.
<PAGE>
TABLE OF CONTENTS
TOPIC PAGE
----- ----
TABLE OF FUND EXPENSES............................................. 3
EXAMPLE............................................................ 3
MULTIPLE INDEX TRUST............................................... 4
TREASURIES TRUST................................................... 6
OTHER INFORMATION.................................................. 6
MANAGEMENT OF THE FUNDS............................................ 7
PURCHASE OF FUND SHARES............................................ 8
REDEMPTION OF FUND SHARES.......................................... 11
DIVIDENDS, OTHER DISTRIBUTIONS AND TAXES........................... 12
PERFORMANCE INFORMATION............................................ 14
FUND SHARES........................................................ 15
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT.................. 15
GENERAL INFORMATION................................................ 15
<PAGE>
TABLE OF FUND EXPENSES
The following tables are intended to assist investors in understanding the
expenses associated with investing in the Funds.
<TABLE>
<CAPTION>
MULTIPLE TREASURIES
INDEX TRUST TRUST
----------- ----------
<S> <C>
SHAREHOLDER TRANSACTION EXPENSES
Maximum sales charge imposed on purchases
(as a % of offering price)......................................... 1.50%(1) 1.50%(1)
Redemption Fees....................................................... None None
Sales load imposed on reinvested dividends............................ None None
Exchange Fees......................................................... None None
<CAPTION>
MULTIPLE TREASURIES
INDEX TRUST TRUST
----------- ----------
<S> <C>
ANNUAL FUND OPERATING EXPENSES
(as a % of average net assets)
Management Fees....................................................... 0.70% 0.40%
12b-1 Fees............................................................ 0.00% 0.00%
Other Expenses (after waivers)(2)..................................... 0.46% 0.46%
----------- ----------
Total Fund Operating Expenses......................................... 1.16% 0.86%
----------- ----------
----------- ----------
</TABLE>
(1) Sales charge waivers and reduced sales charge purchase plans are
available. Purchases of $1 million or more are not subject to an initial sales
charge.
(2) Other Expenses is based on estimated amounts (after waivers) for the
current fiscal year. Without waivers, Other Expenses and Total Fund Operating
Expenses are estimated to be 0.70% and 1.40%, respectively, for the Multiple
Index Trust and 0.70% and 1.10%, respectively, for the Treasuries Trust.
EXAMPLE
A Shareholder would pay the following expenses on a $1,000 investment
assuming (1) a 5% annual return; (2) deduction at the time of investment of the
maximum sales charge of 1.50%; and (3) redemption at the end of each period.
MULTIPLE TREASURIES
INDEX TRUST TRUST
----------- ----------
After 1 year............ $27 $ 24
After 3 years........... 51 42
The Example assumes that all dividends and other distributions are
reinvested and that the percentage amounts listed under Annual Fund Operating
Expenses remain the same in the years shown. The tables above and the assumption
in the Example of a 5% annual return are required by regulations of the
Securities and Exchange Commission ("SEC") applicable to all mutual funds; the
assumed 5% annual return is not a prediction of, and does not represent, the
projected or actual performance of the Funds' shares. THE EXAMPLE SHOULD NOT BE
CONSIDERED A REPRESENTATION OF FUTURE EXPENSES. THE ACTUAL EXPENSES OF THE FUNDS
MAY BE MORE OR LESS THAN THOSE SHOWN.
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MULTIPLE INDEX TRUST
INVESTMENT OBJECTIVE AND POLICIES
The Multiple Index Trust's investment objective is to maximize total return
from capital growth and income. The Fund seeks to achieve its objective by
investing primarily in shares of underlying funds whose portfolios mirror those
of one index or another of market securities, such as the Standard & Poor's 500
Composite Stock Price Index, the New York Stock Exchange Composite Index, the
Nasdaq Composite Index or the Russell 4500 Index. Normally, the Fund will invest
in 10 to 15 such underlying funds; although the Fund may invest up to 25% of its
total assets in any one underlying fund. Such funds generally are not managed in
the traditional sense, using economic, financial and market analysis, nor will
the adverse financial situation of an issuer directly result in its elimination
from the index and consequently the Fund.
The Multiple Index Trust's investment adviser, Yorktown Management &
Research Company, Inc. ("Adviser"), selects underlying funds in which to invest
the assets of the Fund based, in part, upon its analysis of their past
performance, their investment objectives, policies, and the relative prospects
for performance of the indexes sought to be replicated by the funds. The Adviser
also considers other factors in the selection of underlying funds including the
underlying funds' size, cost structure, shareholder services, liquidity and the
reputation and stability of their investment advisers. The underlying funds in
which the Fund invests may include new funds or funds with limited operating
history. Underlying funds in which the Fund may invest may, but normally will
not, have the same investment objectives, policies and limitations as the Fund.
All of the Trust's series that invest in underlying funds, including the
Multiple Index Trust, may invest in shares of the same underlying fund; however,
the percentage of each series' assets so invested may vary, and the Fund and
other funds that are affiliates of the Fund may not own more than 3% of an
underlying fund's outstanding shares at the time of purchase. If the Fund owns
more than 1% of an underlying fund's shares, the underlying fund will be
obligated to redeem only 1% of the underlying fund's outstanding securities held
by the Fund during any period of less than 30 days. Any shares of an underlying
fund held by the Fund in excess of 1% of the underlying fund's outstanding
shares, therefore, will be considered not readily marketable securities that,
together with other such securities, may not exceed 15% of the value of the
Fund's net assets. Further, in accordance with the Investment Company Act of
1940, as amended ("1940 Act"), if an underlying fund submits a matter to
shareholders for vote, the Fund will either vote the shares (i) in accordance
with instructions received from Fund shareholders or (ii) in the same proportion
as the vote of all other holders of such securities.
The Fund intends only to invest in underlying funds that intend to qualify
as regulated investment companies ("RICs") under the Internal Revenue Code of
1986, as amended ("Code"). If an underlying fund fails to qualify for treatment
as a RIC, it may be subject to federal income tax and may adversely affect the
Fund's ability to qualify for that treatment. No assurance can be given,
however, that an underlying fund will qualify for treatment as a RIC.
RISKS AND OTHER CONSIDERATIONS
Any investment in a mutual fund involves risk, and, although the Fund
invests in a number of underlying funds, this practice does not eliminate
investment risk. Investment decisions by the investment advisers of the
underlying funds are made independently of the Fund and the Adviser. Therefore,
the
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<PAGE>
investment adviser of one underlying fund may be purchasing shares of the same
issuer whose shares are being sold by the investment adviser of another
underlying fund. The result of this would be an indirect expense to the Fund
without accomplishing any investment purpose.
Some of the underlying funds also could incur more risks than others. For
example, they may engage in investment practices that entail greater risks or
invest in companies whose securities and other investments are more volatile.
Moreover, while the Fund has a policy of investing no more than 25% of its total
assets in the securities of underlying funds that invest 25% or more of their
total assets in any one industry, the Fund, through its investments in
underlying funds, indirectly may invest more than 25% of its assets in any one
industry. In addition, the underlying funds in which the Fund invests may have
policies themselves that, among other things, permit them to invest up to 100%
of their assets in securities of foreign issuers and to engage in foreign
currency transactions with respect to their investments; invest up to 15% of
their net assets in illiquid securities; lend their portfolio securities; borrow
money in amounts up to 33% of their assets for investment purposes leverage;
invest 25% or more of their total assets in one industry; write (sell) or
purchase call or put options on securities or on stock or bond indexes; enter
into futures contracts; write (sell) or purchase options on futures contracts;
sell securities short; invest up to 5% of their assets in warrants; and invest
in convertible securities. The risks associated with certain of these investment
practices are described in the Statement of Additional Information.
Under certain circumstances, an underlying fund may pay the Fund for
redemption of its shares wholly or partly by a distribution in kind of
securities from its portfolio, in lieu of cash, in conformity with the rules of
the SEC. In such cases, the Fund may hold securities distributed by an
underlying fund until the Adviser determines that it is appropriate to dispose
of such securities. Such disposition generally will entail additional costs to
the Fund.
The Fund may purchase shares of underlying funds that impose, and others
that do not impose, a front-end sales load. Any underlying fund is currently
permitted under the rules of the NASD to impose front-end sales loads as high as
8.5% of the public offering price (9.29% of the net amount invested), provided
that it does not also impose an asset-based sales charge. The Adviser
anticipates, however, investing the Fund's assets in funds that impose no
front-end sales load or impose a front-end sales load on shares purchased by the
Fund of no more than 1% of the public offering price of the shares. Fund
purchases may often qualify for so-called quantity discounts whereby a lower
front-end sales load is applied to purchases of, for example, $50,000 or more.
Additionally, where possible, the Adviser will seek to reduce the front-end
sales load imposed by purchasing shares pursuant to (i) letters of intent,
permitting it to obtain reduced front-end sales loads by aggregating its
intended purchases over time; (ii) rights of accumulation, permitting it to
obtain reduced front-end sales loads as it purchases additional shares of an
underlying fund; and (iii) rights to obtain reduced front-end sales loads by
aggregating its purchases of several funds within a family of mutual funds. In
addition to any front-end sales load imposed by an underlying fund, the
underlying fund may impose annual distribution and service fees of up to 1% of
the fund's average daily net assets. Moreover, the Fund may invest in shares of
underlying funds that are sold with a contingent deferred sales charge of up to
1.0%.
Front-end sales loads generally are split into the dealer reallowance
(which typically comprises at least 80% of the amount of the charge) and the
underwriter's retention. Distributors generally will be designated as the dealer
entitled to receive the dealer reallowance portion of the sales charge on
purchases of load fund shares by the Fund. However, Distributors will not retain
any dealer reallowance in excess of 1% of the public offering price on any
transaction, nor will it be designated as the dealer entitled to
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<PAGE>
receive the dealer reallowance portion of the sales charge where such
reallowance would exceed 1% of the public offering price.
Investing in the Fund also involves certain additional expenses and certain
tax consequences that would not be present in a direct investment in the
underlying funds. An investor in the Fund should recognize that he may invest
directly in any underlying mutual fund and that, by investing in an underlying
fund indirectly through the Fund, he will bear not only his proportionate share
of the expenses of the Fund (including operating costs and investment advisory
and administrative fees) but also indirectly similar expenses of the underlying
funds as well as sales loads and distribution fee expenses.
TREASURIES TRUST
The Treasuries Trust's investment objective is to seek current income while
limiting credit risk. Under normal conditions, the Fund invests at least 65%
(and normally 100%) of its total assets in obligations of the U.S. Treasury
(such as Treasury bills, notes and bonds) that are guaranteed as to principal
and interest by the full faith and credit of the U.S. Government. Treasury
bills, notes and bonds historically have involved little risk of loss of
principal if held to maturity. Such securities, however, are subject to
variations in market value due to interest rate fluctuations. If interest rates
fall, the market value of fixed-income securities tends to rise; if interest
rates rise, the market value of fixed-income securities tends to fall. Moreover,
the longer the remaining maturity of a fixed-income debt security, the greater
the effect of interest rate changes on the market value of the security. This
market risk affects all fixed-income securities, but U.S. Government securities
are generally subject to less market risk.
OTHER INFORMATION
Pending investment, for liquidity or when the Adviser believes market
conditions warrant a defensive position, each Fund temporarily may hold cash or
invest all or a portion of its assets in money market mutual funds or in money
market instruments, including repurchase agreements. A repurchase agreement is a
transaction in which a Fund purchases securities from a bank or recognized
securities dealer and simultaneously commits to resell the securities to the
bank or dealer at an agreed-upon date and price reflecting a market rate of
interest unrelated to the coupon rate or maturity of the purchased securities.
Although repurchase agreements carry certain risks not associated with direct
investments in securities, including possible decline in the market value of the
underlying securities and delays and costs to a Fund if the other party to the
repurchase agreement becomes bankrupt, each Fund intends to enter into
repurchase agreements only with banks and dealers in transactions believed by
the Adviser to present minimal credit risks in accordance with guidelines
established by the Trust's Board of Trustees.
Each Fund may borrow money for temporary purposes from a bank and may
engage in reverse repurchase agreements, but not in excess of 10% of its total
assets. Each Fund, however, will not purchase securities while borrowings in
excess of 5% of its total assets are outstanding. Each Fund may invest up to 15%
of its net assets in securities that cannot be disposed of within seven days in
the ordinary course of business at approximately the amount at which a Fund has
valued the securities and includes, among other things, repurchase agreements
maturing in more than seven days and restricted securities. A considerable
period may elapse between a Fund's decision to sell such securities and the time
when a Fund is able to sell such securities. If, during such a period, adverse
market conditions were to develop, a Fund may obtain a less favorable price than
prevailed when it decided to sell.
6
<PAGE>
Each Fund's investment objective and certain investment limitations, as
described in the Statement of Additional Information, are fundamental and may
not be changed without the affirmative vote of a majority of the Fund's
"outstanding voting securities" as defined in the 1940 Act. All other investment
policies, unless otherwise noted, are nonfundamental and may be changed by the
Trust's Board of Trustees without shareholder approval.
The Adviser anticipates that the annual portfolio turnover rate for each
Fund will not exceed 100%, but may vary from year to year, and will not be a
limiting factor when the Adviser deems portfolio changes appropriate. A high
portfolio turnover rate (100% or more), whether incurred by a Fund or an
underlying fund (Multiple Index Trust only), involves correspondingly greater
transaction costs, which will be borne directly by the Fund or underlying fund
(Multiple Index Trust only), and increases the potential for short-term capital
gains and taxes.
MANAGEMENT OF THE FUNDS
INVESTMENT ADVISORY ARRANGEMENTS
The Trust's Board of Trustees has overall responsibility for the operation
of the Trust. Pursuant to that responsibility, the Board has selected the
Adviser to act as investment adviser and administrator for the Funds. The
Adviser supervises all matters relating to the operation of each Fund and is
responsible for making investment decisions for each Fund, furnishing corporate
officers and clerical staff and providing office space, office equipment and
office services.
The Adviser receives a monthly fee for its services, calculated daily,
payable at an annual rate of 0.70% of the average daily net assets of the
Multiple Index Trust and at an annual rate of 0.40% of the average daily net
assets of the Treasuries Trust. Each Fund incurs various other expenses in its
operations, such as custody and transfer agency fees, brokerage commissions,
professional fees, expenses of board and shareholder meetings, fees and expenses
relating to the registration of its shares, taxes and governmental fees, fees
and expenses of the trustees, costs of obtaining insurance, expenses of printing
and distributing shareholder materials, organizational expenses and
extraordinary expenses, including costs or losses in litigation.
The Adviser is located at 2303 Yorktown Avenue, Lynchburg, Virginia 24501
and is controlled by David D. Basten. Mr. Basten currently serves as each Fund's
portfolio manager. He is also the portfolio manager of the Trust's other series.
The Adviser places orders for the purchase and sale of portfolio
investments for a Fund's account with brokers or dealers, selected by it in its
discretion, including Distributors. With respect to the Multiple Index Trust,
where Distributors acts as the dealer with respect to the purchases of load fund
shares, it will retain dealer reallowances on those purchases up to a maximum of
1% of the public offering price of the shares. Distributors may not be
designated as the dealer on any sales where such reallowance exceeds 1% of the
public offering price. In the event Distributors is unable to act as dealer with
respect to a particular transaction, the Adviser will direct such order to
another broker-dealer. Factors in the selection of such a broker-dealer include
the receipt of research, analysis and advice and similar services and the sale
of Fund shares by such broker-dealer. Distributors also may receive distribution
payments from the underlying funds or their underwriter in accordance with the
Rule 12b-1 distribution plans of those funds.
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<PAGE>
DISTRIBUTION ARRANGEMENTS
Distributors is the distributor of shares of the Funds and is located at
2303 Yorktown Avenue, Lynchburg, Virginia 24501. Distributors is an affiliate of
the Adviser and is controlled by David D. Basten. As distributor, Distributors
collects the sales charges imposed on purchases of shares and reallows the sales
charge to brokers that have sold such shares in accordance with the schedule set
forth below under "Purchase of Fund Shares." In addition to such compensation,
Distributors pays a broker a monthly fee based on the value of investments
maintained in the Fund by clients of such broker. With respect to the Treasuries
Trust, Distributors pays such fee at an annual rate of up to 0.30% of the
average amount of client assets maintained in the Fund during the month. With
respect to the Multiple Index Trust, Distributors pays such fee at the annual
rate of up to 0.50% of the average amount of client assets maintained in the
Fund during the month.
Distributors may also pay certain broker-dealers, banks, fiduciaries,
custodians for public funds and investment advisers a fee for distribution,
administrative or other services. In addition, Distributors may provide
additional incentives to brokers that sell shares of the Funds. In some
instances, these incentives may be offered only to brokers which have sold or
may sell significant amounts of shares. Brokers may also be named the dealer of
record on underlying fund shares purchased by the Multiple Index Trust, with the
result that those brokers could receive commissions or fees from the
underwriters of those underlying funds. These commissions could be paid as long
as the Multiple Index Trust held the underlying fund shares in its portfolio.
Applicable banking laws prohibit certain deposit-taking institutions from
underwriting or distributing securities. There is currently no precedent
prohibiting banks from performing administrative services in connection with the
distribution of Fund shares. If a bank were prohibited from performing such
administrative services, its shareholder clients would be permitted to remain
shareholders of the Funds and alternate means of servicing such shareholders
would be sought. It is not expected that shareholders would suffer any adverse
financial consequences as a result of any of these occurrences.
PURCHASE OF FUND SHARES
HOW SHARES MAY BE PURCHASED
The public offering price of each Fund's shares is the net asset value per
share plus an initial sales charge next determined after receipt by Fund
Services, Inc., the Funds' transfer agent, of a completed and signed purchase
application together with a check to cover the purchase. The initial sales
charge is calculated as follows:
<TABLE>
<CAPTION>
SALES CHARGE AS
PERCENTAGE OF DEALER
---------------------- REALLOWANCE AS
OFFERING NET PERCENTAGE OF
AMOUNT OF PURCHASE AT THE PUBLIC OFFERING PRICE PRICE INVESTMENT OFFERING PRICE
- -------------------------------------------------------------------- -------- ---------- -----------------
<S> <C> <C> <C>
Less than $100,000.................................................. 1.50% 1.52% 1.50%
$100,000 but less than $250,000..................................... 1.25 1.27 1.25
$250,000 but less than $1 million................................... 1.00 1.01 1.00
$1 million or more.................................................. 0.00 0.00 0.00
</TABLE>
To the extent that Distributors reallows more than 90% of the sales charge
to a broker-dealer, such broker-dealer may be deemed an underwriter under the
Securities Act of 1933, as amended. In addition to
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the front-end sales charge imposed by a Fund, a broker-dealer may charge its
client a fee for selling Fund shares. A broker-dealer is responsible for the
prompt transmission of a purchase order to the Fund's transfer agent. The Trust
and Distributors reserve the right to reject any purchase order.
Investors who are purchasing shares of both Funds may combine those
purchases to receive a reduced sales charge. Investors who already own shares in
one or both Funds may combine the amount they are currently purchasing with the
value of such previously owned shares to qualify for a reduced sales charge. To
determine the sales charge reduction in either case, please refer to the chart
above.
Investors may also qualify for a reduced sales charge when they combine
their purchases with those of:
o their spouses, parents or children under age 21;
o their individual retirement accounts (IRAs);
o certain employee benefit plans, including 401(k) plans;
o any company controlled by the investor; and
o trusts created by the investor; and
o Uniform Gifts to Minors Act/Uniform Transfers to Minors Act
accounts created by the investor or group of individuals for the
benefit of the investors' children; or accounts with the same
adviser.
Employers who own shares for one or more of their qualified retirement
plans may also qualify for a reduced sales charge.
No sales charge will apply when the investor:
o is an employee, director, trustee or officer of the Adviser, its
affiliates or the Trust;
o is the spouse, parent or child of any of the above;
o is an employer establishing an employee benefit plan qualified
under section 401 (including a salary reduction plan qualified
under section 401(k)) or section 403(b) of the Code. (This waiver
is subject to minimum requirements, with respect to the number of
employees and investment amount, established by the Adviser.);
o acquires shares of a Fund through an investment program that is
not sponsored by Distributors or its affiliates and that charges
participants a fee for program services, provided that the program
sponsor has entered into a written agreement with Distributors
permitting the sale of shares at net asset value to that program;
or
o acquires shares in connection with a reorganization pursuant to
which a Fund acquires substantially all of the assets and
liabilities of another investment company in exchange solely for
shares of the Fund.
Application forms for the purchase of Fund shares can be obtained from
Distributors or from a broker-dealer that has entered into an agreement with
Distributors. Each Fund's minimum initial investment is $5000 and the minimum
for additional investments is $1000. An exception to these minimums is granted
for investments made pursuant to special plans or if approved by Distributors.
When shares of a Fund are initially purchased, an account with that Fund is
automatically established for the shareholder. Any shares of that Fund
subsequently purchased or received as a distribution are
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<PAGE>
credited directly to the shareholder account. No share certificates are issued
unless specifically requested in writing to the Trust. Certificates are issued
in full shares only. In addition, no certificates are issued for shares
purchased by check until 15 business days have elapsed, unless the Trust is
reasonably assured that payment for the shares has been collected. There is no
charge for certificate issuance.
SYSTEMATIC INVESTMENT PLAN
Shareholders may purchase Fund shares through a Systematic Investment Plan.
Under such Plan, Fund Services, Inc., at regular intervals, will automatically
debit a shareholder's bank checking account in an amount of $1,000 or more
(subject to the $5,000 minimum initial investment), as specified by the
shareholder. A shareholder may elect to invest the specified amount monthly or
quarterly. The purchase of Fund shares will be effected at their offering price
at the close of normal trading on the New York Stock Exchange, Inc. ("NYSE") on
or about the 15th day of the month. To obtain an application for the Systematic
Investment Plan, write to Distributors at the address shown on the back cover of
this Prospectus.
EXCHANGE PRIVILEGES
Shares of each Fund may be exchanged for shares of the other Fund and the
Trust's series listed below without an exchange fee. The Trust's series with
which exchanges may be made are:
Capital Income Fund, which seeks primarily high current income and
secondarily growth of capital and income. Like the Multiple Index Trust,
the Capital Income Fund seeks to achieve its investment objective by
investing in shares of underlying funds.
Growth Fund, which seeks growth of capital. Like the Multiple Index Trust,
the Growth Fund seeks to achieve its investment objective by investing in
shares of underlying funds.
T-1 Treasury Trust, which seeks current income while limiting credit risk.
The T-1 Treasury Trust seeks to achieve its objective by investing in U.S.
Treasury securities with remaining maturities of one year or less.
Yorktown Classic Value Trust, which primarily seeks growth of capital and
seeks income as a secondary objective. The Yorktown Classic Value Trust
seeks to achieve these objectives by investing primarily in equity
securities which the Adviser believes are undervalued in relation to the
quality of the securities and the long-term earning power of their issuers,
regardless of short-term indicators.
Shareholders must place exchange orders in writing with the transfer agent,
Fund Services, Inc., P.O. Box 26305, Richmond, Virginia 23260. Telephone
exchanges are not available. All permitted exchanges will be effected based on
the net asset value per share of each Fund that is next computed after receipt
by the transfer agent of the exchange request in "good order."
An exchange request is considered in "good order" only if:
1. The dollar amount or number of shares to be purchased is indicated.
2. The written request is signed by the registered owner and by any
co-owner of the account in exactly the same name or names used in
establishing the account.
3. Where share certificates have been issued, the written request is
accompanied by the certificates for shares to be redeemed, properly
endorsed in form for transfer, and either the share certificates
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<PAGE>
or separate instructions of assignment (stock powers) signed by each
registered owner and co-owner exactly as the shares are registered.
4. The signatures on the written exchange request and on any share
certificates (or on accompanying stock powers) are guaranteed by a bank,
broker, dealer, municipal securities dealer, municipal securities
broker, government securities dealer, government securities broker,
credit union (if authorized under state law), national securities
exchange, registered securities association, clearing agency or savings
association. Signature guarantees from a notary public are not
acceptable.
Other supporting legal documents may be required from corporations or other
organizations, fiduciaries or persons other than the stockholder of record
making the exchange request.
The Trust reserves the right to terminate or modify the exchange offer
described herein and will give shareholders 60 days' notice when required by SEC
rules. (See the Statement of Additional Information for further details.) Before
making any exchange, shareholders should contact Distributors or their broker to
obtain more information about exchanges and prospectuses of the Trust's series
to be acquired through the exchange. For tax purposes, an exchange is treated as
a redemption and a subsequent purchase. Any capital gains or losses on the
shares exchanged should be reported for tax purposes. The price of the acquired
shares is the new cost basis for income tax purposes.
DETERMINING NET ASSET VALUE
The net asset value of each Fund is determined as of the close of normal
trading (currently 4:00 p.m. eastern time) on the NYSE each day that the NYSE is
open for business. The net asset value per share is computed by dividing the
value of a Fund's securities plus any cash and other assets (including dividends
accrued but not yet collected) minus all liabilities (including accrued
expenses) by the total number of a Fund's shares outstanding.
The assets of the Multiple Index Trust consist primarily of shares of
open-end funds. Shares of open-end funds are valued at their respective net
asset values under the 1940 Act. An open-end fund values securities in its
portfolio for which market quotations are readily available at their current
market value (generally the last reported sales price) and all other securities
and assets at fair value pursuant to methods established in good faith by the
board of directors of the underlying fund. Money market funds with portfolio
securities that mature in 397 days or less may use the amortized cost or
penny-rounding methods to value their securities.
Other assets of the Multiple Index Trust and the assets of the Treasuries
Trust are valued based on their current market value when market quotations are
readily available. If such value cannot be established, assets are valued at
fair value as determined in good faith by or under the direction of the Trust's
Board of Trustees. Securities having 60 days or less remaining to maturity are
valued at their amortized cost.
REDEMPTION OF FUND SHARES
HOW SHARES MAY BE REDEEMED
Shares of either Fund may be redeemed by mailing a redemption request to
the Fund's transfer agent, Fund Services, Inc., at P.O. Box 26305, Richmond,
Virginia 23260. Upon receipt at the offices of Fund Services, Inc. of a
redemption request in "good order," as described in "Exchange Privileges" above,
the
11
<PAGE>
shares will be redeemed at the net asset value per share computed at the close
of normal trading on the NYSE on that day. Redemption requests received after
the close of normal trading will be executed at the net asset value per share
next computed. The signature(s) on all redemption requests of $10,000 or more
must be guaranteed as described above.
Redemption proceeds will be forwarded by check within five days of the
receipt of a redemption request. If the shares to be redeemed were paid for by
check, then to allow for clearance of the check the redemption proceeds may be
delayed for up to 15 days after the purchase date. The redemption proceeds may
be more or less than the original cost.
Other supporting legal documents may be required from corporations or other
organizations, fiduciaries or persons other than the stockholder of record
making the redemption request. If there is a question concerning the redemption
of Fund shares, contact Distributors, your broker or Fund Services, Inc.
Because of the high cost of maintaining small accounts, the Trust reserves
the right to redeem shareholder accounts of less than $100 net asset value
resulting from redemptions or exchanges. If the Trust elects to redeem such
shares, it will notify the shareholder of its intention to do so and provide the
shareholder with the opportunity to increase the amount invested to $100 or more
within 30 days of notice.
SYSTEMATIC WITHDRAWAL PLAN
An investor who has made an initial investment of at least $10,000 in a
Fund or otherwise has accumulated shares valued at no less than $10,000 is
eligible for a Systematic Withdrawal Plan. If so eligible, the investor may
arrange for fixed withdrawal payments (minimum payment -- $100; maximum payment
- -- 1% per month or 3% per quarter of the total net asset value of the Fund
shares in the shareholder account at inception of the Systematic Withdrawal
Plan) at regular monthly or quarterly intervals. Withdrawal payments are made to
the investor or to the beneficiaries designated by him. An investor is not
eligible for a Systematic Withdrawal Plan if he is making regular purchase
payments pursuant to the Systematic Investment Plan described above.
DIVIDENDS, OTHER DISTRIBUTIONS AND TAXES
DIVIDENDS AND OTHER DISTRIBUTIONS
Dividends from the Treasuries Trust's net investment income, if any, are
declared and distributed at least quarterly. Dividends from the Multiple Index
Trust's net investment income, if any, are declared and distributed at least
annually. Any net capital gain (the excess of net long-term capital gain over
net short-term capital loss and any net short-term capital gain) realized from
the sale of portfolio securities by either Fund is distributed at least
annually. Unless the Trust receives instructions to the contrary from a
shareholder before the record date, it will be assumed that the shareholder
wishes to, and the shareholder will, receive both dividends and capital gain
distributions declared by a Fund in additional shares of that Fund. Instructions
continue in effect until the Trust is notified in writing that a change is
desired. All reinvested dividends and capital gain distributions are reinvested
in additional shares of the distributing Fund on the payment date at those
shares' net asset value on that day. Account statements are mailed to
shareholders evidencing each reinvestment.
12
<PAGE>
TAXATION OF THE FUNDS
Each Fund is treated as a separate corporation for federal income tax
purposes and intends to qualify for treatment as a RIC under the Code, so that
it will be relieved of federal income tax on that part of its investment company
taxable income (consisting generally of net investment income and net short-term
capital gain) and net capital gain that is distributed to its shareholders. To
the extent, however, that a Fund does not distribute to its shareholders by the
end of any calendar year substantially all of its ordinary income for that year
and substantially all of its capital gain net income for the one-year period
ending on October 31 of that year, plus certain other amounts, a 4% federal
excise tax will be imposed on that Fund.
TAXATION WITH RESPECT TO UNDERLYING FUNDS (MULTIPLE INDEX TRUST ONLY)
The Multiple Index Trust intends only to invest in underlying funds that
intend to qualify for treatment as RICs under the Code. No assurance can be
given, however, that an underlying fund will qualify for treatment as a RIC. If
an underlying fund fails to qualify for treatment as a RIC, it may be subject to
federal income tax and may adversely affect the Fund's ability to satisfy the
diversification requirement applicable to RICs (see "Taxation" in the Statement
of Additional Information) and thereby its ability to qualify as a RIC.
If the Multiple Index Trust realizes gain from the disposition of shares of
any underlying fund held as capital assets for more than one year, or if it
receives a distribution from any underlying fund that is designated as a capital
gain distribution (regardless of how long the Multiple Index Trust held the
shares thereof), the amount of that gain or distribution is included in the
Fund's net capital gain. Any other gain on disposition of shares of an
underlying fund and any other distribution received therefrom is included in the
Multiple Index Trust's investment company taxable income.
TAXATION OF SHAREHOLDERS
Shareholders, other than tax-exempt entities (including those that hold
shares pursuant to qualified retirement plans), are subject to current taxation
on dividends paid, and capital gain distributions made, by a Fund. Dividends
from a Fund's investment company taxable income are taxable as ordinary income
to its shareholders, whether received in cash or in additional Fund shares, to
the extent of the Fund's earnings and profits. Distributions of a Fund's net
capital gain are taxable as long-term capital gain to its shareholders, whether
received in cash or in additional Fund shares, regardless of the period of time
the shares have been held. The portion of the dividends paid by the Treasuries
Trust attributable to interest earned on its investments that are direct
obligations of the U.S. government generally are not subject to state and local
income taxes, although distributions by that Fund to its shareholders of net
realized gains on the disposition of those investments are fully subject to
those taxes.
Each Fund advises its shareholders of the tax status of distributions
following the end of each calendar year. Each Fund is required to withhold 31%
of all dividends, capital gain distributions and redemption proceeds payable to
any individuals and certain other noncorporate shareholders who do not provide
the Fund with a correct taxpayer identification number. Such withholding is also
required from dividends and capital gain distributions payable to such
shareholders who otherwise are subject to backup withholding.
A redemption of Fund shares will result in taxable gain or loss to the
redeeming shareholder, depending on whether the redemption proceeds are more or
less than the shareholder's adjusted basis for the redeemed shares (which
normally includes any initial sales charge paid on the shares). Similar tax
consequences will result on an exchange of shares of one Fund for shares of
another series of the Trust. However,
13
<PAGE>
special rules apply when a shareholder disposes of Fund shares through a
redemption or exchange within 90 days after purchase thereof and subsequently
reacquires shares of that Fund or acquires shares of another series of the Trust
without paying a sales charge due to the reinvestment or exchange privileges. In
these cases, any gain on the disposition of the original Fund shares would be
increased, or loss decreased, by the amount of the sales charge paid when those
shares were acquired, and that amount will increase the adjusted basis of the
shares subsequently acquired. In addition, if shares of a Fund are bought within
30 days before or after selling other shares of the Fund at a loss, all or a
portion of that loss will not be deductible and will increase the basis of the
newly purchased shares.
The foregoing is only a summary of some of the important federal tax
considerations generally affecting the Funds and their shareholders; see the
Statement of Additional Information for a further discussion. There may be other
federal, state or local tax considerations applicable to a particular investor.
Investors therefore are urged to consult their own tax advisers.
QUALIFIED RETIREMENT PLANS
An investment in shares of either Fund may be appropriate for individual
retirement accounts, tax deferred annuity plans under section 403(b) of the
Code, self-employed individual retirement plans (commonly referred to as "Keogh
plans"), simplified employee pension plans, savings incentive match plans for
employees ("SIMPLEs") and other qualified retirement plans (including section
401(k) plans). Capital gain distributions and dividends received on Fund shares
held by any of these accounts or plans are automatically reinvested in
additional Fund shares, and taxation thereof generally is deferred until
distributed by the account or plan. Investors who are considering establishing
such an account or plan may wish to consult their attorneys or other tax
advisers with respect to individual tax questions. The option of investing in
these accounts or plans through regular payroll deductions may be arranged with
Distributors and the employer.
PERFORMANCE INFORMATION
From time to time, quotations of each Fund's average annual total return
("Standardized Return") may be included in advertisements, sales literature or
shareholder reports. Standardized Return shows percentage rates reflecting the
average annual change in the value of an assumed initial investment of $1,000,
assuming the investment has been held for periods of one year, five years and
ten years as of a stated ending date. If a five- and/or ten-year period has not
yet elapsed, data will be provided as of the end of a shorter period
corresponding to the life of a Fund. Standardized Return reflects deduction of a
Fund's minimum initial sales charge at the time of purchase. Standardized Return
also assumes that all dividends and capital gain distributions were reinvested
in shares of a Fund.
In addition, other total return performance data ("Non-Standardized
Return") regarding a Fund may be included in advertisements, sales literature or
shareholder reports. Non-Standardized Return shows a percentage rate of return
encompassing all elements of return (i.e., income and capital appreciation or
depreciation), and it assumes reinvestment of all dividends and capital gain
distributions. Non-Standardized Return may be quoted for the same or different
periods as those for which Standardized Return is quoted. Non-Standardized
Return may consist of cumulative returns, annual rates, year-by-year rates or
any combination thereof. Cumulative total return represents the cumulative
change in value of an investment in a Fund for various periods. Average annual
total return refers to the annual compound rate of
14
<PAGE>
return of an investment in a Fund. Non-Standardized Return does not reflect
deduction of a Fund's initial sales charge and would be lower if such charge was
included.
The Treasuries Trust may also advertise its yield. Yield reflects
investment income net of expenses over a 30-day period on a share, expressed as
an annualized percentage of the net asset value per share at the end of the
period. Yield computations differ from other accounting methods and therefore
may differ from dividends actually paid or reported net income.
Total return and yield figures are based on historical performance of a
Fund, show the performance of a hypothetical investment and are not intended to
indicate future performance.
FUND SHARES
The Trust was organized as a Massachusetts business trust in January 1985
under the name American Pension Investors Trust and is registered with the SEC
under the 1940 Act as an open-end management investment company. The Trust
currently consists of seven separate series: the Multiple Index Trust, the
Treasuries Trust, the Growth Fund, the Capital Income Fund, the T-1 Treasury
Trust, the Yorktown Classic Value Trust and the Yorktown Value Income Trust. The
Board of Trustees may elect to add additional series to the Trust in the future.
The Trust is authorized to issue an unlimited number of shares of
beneficial interest without par value. Shares of beneficial interest of a Fund,
when issued, are fully paid, nonassessable, fully transferable, redeemable at
the option of the shareholder and have equal dividend, liquidation and
noncumulative voting rights. The shares of each Fund will be voted separately
except when an aggregate vote of all of the Trust's portfolios is required by
the 1940 Act or otherwise.
The Trust does not hold annual meetings of shareholders. There will
normally be no meetings of shareholders for the purpose of electing trustees
unless and until such time as less than a majority of the trustees holding
office have been elected by shareholders, at which time the trustees then in
office will call a shareholders' meeting for the election of trustees. Under the
1940 Act shareholders of record of no less than two-thirds of the outstanding
shares of the Trust may remove a trustee by vote cast in person or by proxy at a
meeting called for that purpose.
CUSTODIAN, TRANSFER AND DIVIDEND DISBURSING AGENT
Custodial Trust Company, 101 Carnegie Center, Princeton, New Jersey
08540-6231, serves as each Fund's custodian. Fund Services, Inc., 1500 Forest
Avenue, Suite 111, Richmond, Virginia 23229, is the Trust's transfer and
dividend disbursing agent.
GENERAL INFORMATION
Fund shareholders are kept informed through semi-annual and annual reports.
Any inquiries should be directed in writing to the Trust at P.O. Box 2529, 2303
Yorktown Avenue, Lynchburg, Virginia 24501. Shareholders may direct general
telephone inquiries to the Trust at the numbers listed on the back cover of this
Prospectus. Telephone inquiries regarding shareholder account information should
be directed to the Trust's transfer agent at the number listed on the back cover
to this Prospectus.
15
<PAGE>
API MULTIPLE INDEX TRUST/TREASURIES TRUST ACCOUNT APPLICATION
Please Make Checks Payable to and Addressed to: API TRUST
P.O. Box 26305, Richmond, Virginia 23260
For Questions Please Call: (800) 544-6060
<TABLE>
<S> <C>
Amount: $ Confirm #:
----------------------------------------- -------------------------
Minimum Initial Investment $5000, Subsequent $1000
ACCOUNT REGISTRATION
TYPE OF ACCOUNT CHECK ONE: [ ] [ ] JOINT [ ] GIFTS/TRANSFERS TO A
INDIVIDUAL TENANTS MINOR [ ] TRUST [ ] BUSINESS
COMPLETE A COMPLETE D COMPLETE E
ONLY COMPLETE A & B COMPLETE C ONLY ONLY ONLY
</TABLE>
A
<TABLE>
<S> <C> - -
- --------------------------------------------------- --- --- --- --- --- --- --- --- ---------------
First Name, Middle Initial, Last Name Social Security Number (Required) Date of Birth
</TABLE>
B
<TABLE>
<S> <C> - -
- --------------------------------------------------- --- --- --- --- --- --- --- --- ---------------
First Name, Middle Initial, Last Name Social Security Number (Required) Date of Birth
</TABLE>
Joint account holders will be considered "joint tenants with rights of
survivorship" unless otherwise specified. Joint account holders may elect to
register their account as an "either/or" account. Such an election permits
shares to be redeemed and certain instructions to be honored upon the request of
any one of the account holders. By electing "either/or" status, checks or some
written requests with only one signature, from one tenant will be honored. If
"either/or" is elected, the joint account holders agree that the Fund, its
transfer agent and principal underwriter shall not be held liable for any loss
sustained as a result of complying with these instructions.
[ ] "Either/or" election [ ] All signatures required
<TABLE>
<S> <C>
C
- --------------------------------------------------- ----------------------------------------
Custodian's Name (only one permitted) As Custodian For Minor's Name (only one permitted)
under the _______ Uniform Gifts/Transfers to Minors Act.
- ------------------------------------ ----------------------------------------- --------------------------
State Minor's Social Security Number (Required) Minor's Date of Birth
D
- --------------------------------------------------- ---------------------------------------------------
Name of Trustee Name of Trust
- --------------------------------------------------- ------------------------- ------------------------------
Name of Second Trustee (if any) Date of Trust (Required) Taxpayer Identification Number
(Required)
E
[ ] Corporation [ ] Partnership [ ] Other
- --------------------------------------------------- ---------------
Name of Business Specify
- --------------------------------------------------- ---------------------------------------------------
Taxpayer Identification Number Person to Contact Concerning Account
- --------------------------------------------------------------------------------
MAILING ADDRESS
- ------------------------------------------------- --------------- --------------- ---------------
Street Address and Apartment Number or Box Number City State Zip Code
I am a: [ ] U.S. Citizen [ ] Resident Alien
------------------------------ ---------------------------
(Area Code) Day Phone (Area Code) Evening Phone
</TABLE>
[ ] Non-Resident Alien
----------------------------
Please Specify Country
(ADDITIONAL INFORMATION REQUIRED ON REVERSE)
<PAGE>
CORPORATE AND TRUST CERTIFICATION
I hereby certify: (i) that I am the duly qualified Secretary of
- ------------------- , a corporation duly organized and existing under the laws
of ------------------- , or (ii) that -------------------is/are the currently
acting trustee(s) of ------------------- , and that all actions by shareholders,
directors, trustees and other bodies necessary to execute this Application and
establish an account with API Trust have been taken; and further, that any one
of the following officers or trustees, unless a greater number is specified, is,
and until further notice to API Trust, will be duly authorized and empowered to
purchase, sell, assign, transfer, and withdraw securities and funds from the
account established hereby.
Dated this --- day of ------------------- , 19 ---
<TABLE>
<S> <C>
- ---------------------------------------------------- ----------------------------------------------------
Name Title Signature of Secretary or Trust Officer
</TABLE>
If more than one signature is required on the account, please specify the number
of signatures required and identify the individuals below:
<TABLE>
<S> <C>
- ---------------------------------------------------- ----------------------------------------------------
Name Title Signature
- ---------------------------------------------------- ----------------------------------------------------
Name Title Signature
</TABLE>
LIMITED AUTHORIZATION
I hereby authorize API Trust, its transfer agent and its principal underwriter
to transmit information (such as statements) and to honor redemption
instructions from the party designated below concerning my account:
Broker/Dealer [ ] Investment Adviser [ ]
<TABLE>
<S> <C>
- ---------------------------------------------------- ----------------------------------------------------
Firm Name Firm Address
( )
- ---------------------------------------------------- ----------------------------------------------------
Main Office Phone Number Client Securities Firm Account No.
- ---------------------------------------------------- ----------------------------------------------------
Registered Representative Name
</TABLE>
DISTRIBUTION OPTIONS
If no box below is checked, all distributions (dividends and capital gains) will
be reinvested in additional shares.
[ ] I would like all dividends and capital gains (if any) reinvested in my
account.
[ ] I would like all dividends and capital gains (if any) paid to me in cash.
[ ] I would like all dividends (if any) paid to me in cash and all capital gains
(if any) reinvested in my account.
AUTOMATIC INVESTMENT PLAN
Purchases through the Automatic Investment Plan are effected on the 15th day of
the month (or the following business day). Check one:
[ ] Monthly Investment [ ] Quarterly Investment (March, June, September,
December)
Amount of Systematic Investment $ ($1,000 Minimum)
----------------------
PLEASE ATTACH A VOIDED CHECK TO THIS APPLICATION.
SYSTEMATIC WITHDRAWAL PLAN
(The minimum initial investment or public offering price of any existing account
must be $10,000 or more.)
[ ] Check here if you would like additional information and the Application for
Systematic Withdrawal Plan sent to you.
SIGNATURES
I acknowledge receipt of a current prospectus of API Multiple Index
Trust/Treasuries Trust and agree to be bound by its terms and the terms set
forth herein. As required by law and under penalties of perjury, I certify that
(1) the Social Security or other taxpayer identification number (TIN) provided
on this application is my correct TIN, and (2) currently I am not under IRS
notification that I am subject to backup withholding. (Please strike out clause
(2) if you are currently under notification.)
<TABLE>
<S> <C>
- ---------------------------------------------------- ----------------------------------------------------
Applicant Date Joint Applicant Date
- ---------------------------------------------------- ----------------------------------------------------
Other Authorized Signature Date Other Authorized Signature Date
</TABLE>
<PAGE>
EXECUTIVE OFFICERS
American Pension Investors Trust
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
INVESTMENT ADVISOR
Yorktown Management & Research
Company, Inc.
P.O. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
(800) 544-6060
DISTRIBUTOR
Yorktown Distributors, Inc.
P.O.. Box 2529
2303 Yorktown Avenue
Lynchburg, Virginia 24501
TRANSFER AND DIVIDEND
DISBURSING AGENT
Fund Services, Inc.
P.O. Box 26305
Richmond, Virginia 23260
(800) 628-4077
CUSTODIAN
Custodial Trust Company
101 Carnegie Center
Princeton, New Jersey 08540-6231
INDEPENDENT AUDITORS
Coopers & Lybrand L.L.P.
217 E. Redwood Street
Baltimore, Maryland 21202-3316
No person has been authorized to give any information or to make any
representations not contained in this Prospectus in connection with the offering
made by this Prospectus and, if given or made, such information and
representations must not be relied upon as having been authorized by the Trust
or its distributor. This Prospectus does not constitute an offering by the Trust
or its distributor in any jurisdiction to any person to whom such offering may
not lawfully be made.
<PAGE>
MULTIPLE INDEX TRUST
TREASURIES TRUST
PROSPECTUS
[LOGO]
This Prospectus is dated June 1, 1997.
*************************************************************************
APPENDIX--Photo on back cover is of different kinds of money.
