Portfolio of Investments
The Elite Growth & Income Fund
March 31, 1996
(unaudited)
Market Value
SHARES Note 2A
- ------ ------------
COMMON STOCK 93.3%
BASIC INDUSTRY 10.2%
20,000 Aluminum Company of America $ 1,252,500
12,000 Dow Chemical 1,042,500
8,000 Potash of Saskatchewan 500,000
14,000 W.R. Grace & Co 1,095,500
-----------
Total Basic Industry 3,890,500
-----------
CAPITAL GOODS 18.4%
20,000 Arrow Electronics* 940,000
12,000 General Electric 934,500
11,000 Hewlett Packard 1,034,000
10,000 Intel Corporation 567,500
6,000 International Business Machines 666,750
9,500 Microsoft* 978,500
6,000 Seagate Technologies* 876,000
6,000 XactLabs Corporation* (a) 300,000
6,000 Xerox Corporation 753,000
-----------
Total Capital Goods 7,050,250
-----------
CONSUMER GOODS & SERVICES 14.4%
28,000 Ford Motor Co 962,500
16,000 General Motors 852,000
16,000 Kimberly-Clark 1,192,000
30,000 Manpower Inc. 930,000
35,000 Optiva Corporation * (a) 175,000
50,000 Resound Corporation* 550,000
20,000 Viacom-B* 842,500
-----------
Total Consumer Goods & Services 5,504,000
-----------
<PAGE>
Portfolio of Investments
The Elite Growth & Income Fund
March 31, 1996 - Continued
Market Value
SHARES Note 2A
- ------ ------------
ENERGY GOODS & SERVICES 7.2%
14,200 Anadarko Petroleum 788,100
50,000 Enserch Corporation 812,500
10,000 Mobil Corporation 1,158,750
-----------
Total Energy Goods & services 2,759,350
-----------
FINANCIAL INTERMEDIARIES 21.4%
24,000 Ace Limited (Insurance) 1,071,000
8,000 American International Group 749,000
12,000 Federal Home Loan Mortage 1,023,000
32,000 Federal National Mortgage 1,020,000
16,000 Frontier Insurance 490,000
20,000 ITT Hartford 980,000
30,000 Key Corporation 1,158,750
20,000 Mellon Bank 1,102,500
50,000 Royce Value Trust 612,500
-----------
Total Financial Intermediaries 8,206,750
-----------
HEALTH CARE GOODS & SERVICES 21.8%
10,000 American Home Products 1,083,750
14,000 Bristol-Myers 1,198,750
22,000 Foundation Health* 838,750
16,000 ICN Pharmaceutical 354,000
13,800 Merck & Co. 859,050
16,000 Pfizer Inc. 1,072,000
10,000 Schering - Plough 581,250
30,000 Sierra Health* 978,750
50,000 Value Health* 1,375,000
-----------
Total Health Care Goods & Services 8,341,300
-----------
Total Common Stock (Cost $27,250,799) 35,752,150
-----------
OPTIONS - COVERED CALLS ( 1.0%)
9,500 Microsoft ($80 4-20-96) (222,063)
16,000 Pfizer Inc. ($ 60 6-15-96) (132,000)
30,000 Sierra Health ($35 6-15-96) ( 35,625)
-----------
Total Value of Calls (Cost $ 366,150) (389,688)
-----------
<PAGE>
Portfolio of Investments
The Elite Growth & Income Fund
March 31, 1996 - Continued
PAR VALUE Market Value
- --------- Note 2A
------------
CORPORATE BONDS 2.3%
$2,800,000 Bonneville Pacific Corp.**
7.75% Due 8/15/09 (cost $172,551) 616,000
-----------
Total Investments
(Cost $27,057,199***) 93.9% 35,978,463
Cash and receivables
in excess of liabilities 6.1
2,336,357
------ -----------
NET ASSETS 100.0% $38,314,820
====== ===========
(a) Restricted security ( see note 3)
* Non - income producing
** This security is in arrears and is not currently paying interest.
The Company has filed for protection under Chapter 11 of the
bankruptcy code.
*** Cost for Federal Income Tax purposes is the same. At March 31, 1996,
unrealized appreciation of securities for Federal Income Tax
purposes is as follows:
Unrealized appreciation $ 9,118,754
Unrealized depreciation (197,491)
-----------
Net unrealized appreciation $ 8,921,263
===========
See Notes to Financial Statement
<PAGE>
Portfolio of Investments
The Elite Income Fund
March 31, 1996
(unaudited)
Market Value
Note 2A
------------
PAR VALUE
- ---------
BONDS 90.8%
U.S. GOVERNMENT NOTES AND BONDS 37.7%
$ 150,000 U.S. Treasury Note
9.375% due 04/15/96 $ 150,237
200,000 U.S. Treasury Note
8.750% due 10/15/97 208,028
1,800,000 U.S. Treasury Note
6.375% due 01/15/99 1,820,106
1,205,000 U.S. Treasury Note
7.875% due 11/15/99 1,275,046
1,250,000 U.S. Treasury Bond
7.250% due 05/15/16 1,304,637
-----------
Total U.S. Government Notes and Bonds 4,758,054
-----------
ELECTRIC UTILITIES 23.9%
500,000 Texas Utilities
5.875% due 04/01/98 495,000
500,000 Portland General Electric
8.880% due 08/12/99 536,250
500,000 Commonwealth Edison
7.500% due 01/01/01 504,375
350,000 S. California Edison Capital Notes
7.375% due 12/15/03 355,688
500,000 Hawaiian Electric
6.660% due 12/05/05 478,125
650,000 Appalachian Power Co.
6.800% due 03/01/06 649,188
-----------
Total Electric Bonds 3,018,626
-----------
GAS UTILITIES 15.0%
250,000 Consumer Power
8.750% due 02/15/98 260,000
170,000 Consumer Power
8.875% due 11/15/99 181,687
500,000 Louisiana Power & Light
6.000% due 03/01/00 491,875
500,000 Long Island Lighting
7.050% due 03/15/03 467,500
500,000 Pacific Gas Transmission
7.100% due 06/01/05 500,000
-----------
Total Gas Utilities 1,901,062
-----------
<PAGE>
Portfolio of Investments
The Elite Income Fund
March 31, 1996 - Continued
Market Value
Note 2A
------------
PAR VALUE
- ---------
FINANCIAL/CORPORATE BONDS 14.2%
500,000 General Motors Acceptance Corp.
8.000% due 10/01/96 505,620
200,000 Federal National Mortgage
8.350% due 11/10/99 213,558
500,000 Ford Motor Credit
8.200% due 02/15/02 533,750
550,000 Federal Home Loan (Mortgage Backed)
6.100% due 02/15/24 537,042
-----------
Total Financial/Corporate Bonds 1,789,970
-----------
Total Value Bonds (Cost $11,435,924) 11,463,512
-----------
SHARES
PREFERRED STOCK 7.5%
2,415 Cleveland Electric 9.125 244,410
4,286 Gulf States Utilities 8.64 415,742
11,700 Public Service New Hampshire Series A 292,500
-----------
Total Value Preferreds (Cost $1,041,834) 952,652
-----------
Total Investments
(Cost $12,477,757***) 98.3% 12,421,164
Cash and receivables
in excess of liabilities 1.7% 209,952
------ -----------
NET ASSETS 100.0% $12,631,116
====== ===========
***Cost for Federal Income Tax purposes is the same.
At March 31, 1996, unrealized appreciation (depreciation) of securities for
Federal Income Tax purposes is as follows:
Unrealized appreciation $ 161,691
Unrealized depreciation (218,284)
----------
Net unrealized depreciation $ ( 56,593)
==========
See Notes to Financial Statements
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
March 31, 1996
(unaudited)
THE ELITE GROWTH THE ELITE
& INCOME FUND INCOME FUND
---------------- -----------
ASSETS:
Investments in securities
at value (notes 2A, 3 )
(Cost $27,057,199 and $12,477,757) $35,978,464 $12,421,164
Cash and cash equivalent (Note 2E) 2,671,926 152,205
Receivables:
Securities sold 843,643 --
Interest 12,397 231,672
Dividends 60,682 7,751
Capital stock sold ( 5,752) 23,752
----------- -----------
Total Assets 39,561,360 12,836,545
----------- -----------
LIABILITIES:
Payables:
Securities purchased 1,170,903 --
Capital stock reacquired 23,057 10,000
Distributions 41,193 192,448
Accrued expenses 11,387 2,981
----------- -----------
Total Liabilities 1,246,540 205,429
----------- -----------
NET ASSETS:
The Elite Growth & Income Fund-
applicable to 2,059,656
shares outstanding $38,314,820
===========
The Elite Income Fund-
applicable to 1,282,986
shares outstanding $12,631,116
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
(Net assets / shares outstanding) $ 18.60 $ 9.85
=========== ===========
At March 31, 1996 the components
of net assets were as follows:
Paid-in capital $27,403,801 $12,678,348
Accumulated net realized
gain on investments 1,975,067 4,704
Undistributed net investment income 14,688 4,657
Net unrealized appreciation
(depreciation) 8,921,263 (56,593)
----------- -----------
Net assets $38,314,820 $12,631,116
=========== ===========
See Notes to Financial Statements
<PAGE>
STATEMENT OF OPERATIONS
For the Six Months Ended March 31, 1996
(unaudited)
THE ELITE GROWTH THE ELITE
& INCOME FUND INCOME FUND
---------------- -----------
INVESTMENT INCOME:
Income:
Interest $ 68,328 $392,233
Dividends 271,565 51,984
---------- --------
Total Income 339,893 444,217
---------- --------
Expenses:
Investment management fee (Note 6) 172,344 45,022
Transfer agent fees 8,300 6,655
Custodian fees 9,990 4,084
Professional fees (Note 6) 24,180 5,405
Trustees fees and expenses 6,646 2,553
Record keeping services 20,875 7,220
Shareholder reports 3,415 473
Registration fees and other 2,150 737
---------- --------
Total Expenses 247,900 72,149
---------- --------
Expenses Reimbursed --- (7,255)
---------- --------
Net Expenses 247,900 64,894
---------- --------
Net Investment Income 91,993 379,323
---------- --------
REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENT
SECURITIES AND OPTIONS CONTRACT
Net realized gain (loss):
Investment securities 1,860,926 10,348
Expired and closed covered call
options written (Note 5) 74,706 ---
---------- --------
Net realized gain on
investment securities
and option contracts 1,935,632 10,348
---------- --------
Net increase (decrease)
in unrealized appreciation
of investment securities 1,871,135 (172,384)
---------- --------
Net increase in net assets
resulting from operations $3,898,760 $217,287
========== ========
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
THE ELITE
GROWTH & INCOME FUND
(unaudited)
Six Months Ended Year Ended
March 31, 1996 Sept 30, 1995
----------------- --------------
OPERATIONS:
Net investment income $ 91,993 $ 313,361
Net realized gain on investment
securities and options contracts 1,935,632 11,070
Net increase in unrealized
appreciation of investment securities 1,871,135 4,767,526
------------ ------------
Net increase in net assets
resulting from operations 3,898,760 5,091,957
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income (80,319) (315,833)
Distributions from net realized gains on
investment transactions (1,974,649)
CAPITAL SHARE TRANSACTIONS:
Increase in net assets
resulting from capital
share transactions (a) 3,313,904 3,000,541
------------ ------------
Total increase in net assets 7,132,345 5,802,016
NET ASSETS:
Beginning of period 31,182,475 25,380,459
------------ ------------
End of period (including undistributed
net investment income of $14,688 and
$3,015 respectively). $38,314,820 $31,182,475
============= ============
(a)Transactions in capital stock were as follows:
Six Months Ended Year Ended
March 31, 1996 September 30,1995
------------------ -----------------
Shares Value Shares Value
------ ----- ------ -----
Shares sold 239,106 $4,244,400 246,266 $3,895,405
Shares issued
in reinvestment
of distributions 1,990 35,771 169,510 2,258,207
-------- ----------- -------- ---------
241,096 4,280,171 433,776 6,154,612
Shares redeemed ( 55,217) (966,276) (220.131) (3,154,071)
-------- ----------- -------- ----------
Net increase 185,879 $3,313,904 213,645 $3,000,541
======== =========== ======== ==========
See Notes to Financial Statements
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
THE ELITE
INCOME FUND
(unaudited)
Six Months Ended Year Ended
March 31, 1996 Sept. 30, 1995
---------------- --------------
OPERATIONS:
Net investment income $ 379,323 $ 731,551
Net realized gain on
investment securities 10,348 53,544
Net increase (decrease) in unrealized
appreciation of investment securities (172,384) 570,087
----------- -----------
Net increase (decrease) in net assets
resulting from operations 217,287 1,355,182
NET EQUALIZATION CREDITS (DEBITS)
(NOTE 2d) 2,695 (3,798)
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income (398,595) (712,510)
Distributions from net realized gains on
investment transactions (69,580) ---
CAPITAL SHARE TRANSACTIONS:
Increase in net assets
resulting from capital
share transactions (a) 516,488 221,770
----------- -----------
Total increase (decrease)
in net assets 265,600 860,644
NET ASSETS:
Beginning of period 12,365,517 11,504,873
----------- -----------
End of period
(including undistributed
net investment income of $4,657 and
$20,132 respectively). $12,631,116 $12,365,517
=========== ===========
(a)Transactions in capital stock were as follows:
Six Months Ended Year Ended
March 31,1996 September 30, 1995
---------------- ------------------
Shares Value Shares Value
------ ----- ------ -----
Shares sold 164,019 $1,669,920 216,852 $2,116,294
Shares issued in reinvestment
of distributions 26,383 268,053 70,878 689,314
------- ---------- ------- ----------
190,402 1,937,973 287,730 2,805,608
Shares redeemed (140,143) (1,421,485) (268,361) (2,583,838)
------- ---------- ------- ----------
Net increase 50,259 $ 516,488 19,369 $ 221,770
======= ========== ======= ==========
See Notes to Financial Statement
<PAGE>
FINANCIAL HIGHLIGHTS
THE ELITE
GROWTH & INCOME FUND
For a share outstanding throughout each period
(unaudited)
Years Ended September 30
<TABLE>
<S> <C> <C> <C> <C> <C>
*1996 1995 1994 1993 1992
Net asset value, beginning of year $16.64 $15.29 $14.44 $13.07 $12.52
------------- ------------- ------------- -------------- ------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .05 .18 .11 .10 .12
Net gains on securities
(both realized and unrealized) 1.95 2.52 1.56 1.65 .81
------------- ------------- ------------- -------------- ------------
Total from investment
operations 2.00 2.70 1.67 1.75 .93
------------- ------------- ------------- -------------- ------------
LESS DISTRIBUTIONS
Dividends from net investment
income (.04) (.18) (.10) (.09) (.11)
Distributions from capital gains --- (1.17) (.72) (.29) (.27)
------------- ------------- ------------- -------------- ------------
Total distributions (.04) (1.35) (.82) (.38) (.38)
------------- ------------- ------------- -------------- ------------
Net asset value, end of year $18.60 $16.64 $15.29 $14.44 $13.07
============= ============= ============= ============== ============
Total Return 12.03% 19.92% 11.80% 13.54% 7.50%
RATIOS/SUPPLEMENTAL DATA
Net asset value, end of year
(in 000's) $ 38,314 $31,182 $25,380 $17,989 $ 12,673
Ratio of expenses to average
net assets 1.43% (a) 1.42%** 1.42% 1.36% 1.37%
Ratio of net investment income
to average net assets .53% (a) 1.18% .73% .69% .91%
Portfolio turnover 132.76% (a) 137.56% 153.34% 172.00% 168.01%
</TABLE>
* For the six months ended March 31, 1996
** Ratio reflects fees paid through a directed brokerage arrangement. Expense
Ratios for 1994-1991 exclude these payments. Expense ratio for 1995 after
reduction of fees paid through the directed brokerage arrangement was 1.35%
(a) annualized
See Notes to Financial Statements
<PAGE>
FINANCIAL HIGHLIGHTS
THE ELITE
INCOME FUND
For a share outstanding throughout each period
(unaudited)
Years Ended September 30
<TABLE>
<S> <C> <C> <C> <C> <C>
*1996 1995 1994 1993 1992
Net asset value, beginning of year $10.03 $ 9.48 $10.61 $10.28 $10.08
------------ ------------ ------------ ------------ ----------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .30 .62 .61 .59 .61
Net gains on securities
(both realized and unrealized) (.12) .54 (1.03) .35 .23
------------ ------------ ------------ ------------ ----------
Total from investment
operations .18 1.16 (.42) .94 .84
------------ ------------ ------------ ------------ ----------
LESS DISTRIBUTIONS
Dividends from net investment
income (.31) (.61) (.61) (.58) (.61)
Distributions from capital gains (.05) -- (.10) (.03) (.03)
------------ ------------ ------------ ------------ ----------
Total distributions (.36) (.61) (.71) (.61) (.64)
------------ ------------ ------------ ------------ ----------
Net asset value, end of year $ 9.85 $10.03 $ 9.48 $10.61 $10.28
============ ============ ============ ============ ==========
Total Return 1.80% 12.56% (4.07%) 9.41% 8.67%
RATIOS/SUPPLEMENTAL DATA
Net asset value, end of year
(in 000's) $12,631 $12,366 $11,505 $11,751 $10,090
Ratio of expenses to average
net assets 1.04%(a)(b) 1.12%** 1.11% 1.02% .98%
Ratio of net investment income
to average net assets 6.06%(a)(b) 6.34% 5.98% 5.66% 6.03%
Portfolio turnover 36.71%(a) 42.24% 40.88% 73.26% 21.83%
</TABLE>
* For the six months ended March 31, 1996
** Ratio reflects fees paid through a directed brokerage arrangement. Expense
Ratios for 1994-1991 exclude these payments. Expense ratio for 1995 after
reduction of fees paid through the directed brokerage arrangement was .08%.
(a) annualized
(b) The manager has elected to reimburse the fund $7255. Without reimbursement
the expense ratio would have been 1.15 % and the net investment income
5.95%.
See Notes to Financial Statement
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
Note 1 - Organization
The Elite Growth and Income Fund and The Elite Income Fund (the
"Funds") are two series of shares of beneficial interests of The Elite Group
(the "Trust"), which is registered under the Investment Company Act of 1940, as
amended, as a diversified open-end management company. The Trust was organized
in Massachusetts as a business trust on August 8, 1986. The Trust is authorized
to issue an unlimited number of no par shares of beneficial interest of any
number of series. Currently, the Trust has authorized only the two series above.
Note 2 - Significant Accounting Policies
The following is a summary of significant accounting policies
consistently followed by the Funds. The policies are in conformity with
generally accepted accounting principles.
A. Security Valuation - Investments in securities traded on a national
securities exchange are valued at the last reported sales price. Securities
which are traded over- the counter are valued at the bid price. Securities for
which reliable quotations are not readily available are valued at their
respective fair value as determined in good faith by, or under procedures
established by the Board of Trustees.
B. Federal Income Taxes - The Funds intend to comply with the
requirements of the Internal Revenue Code applicable to regulated investment
companies and distribute all its taxable income to its shareholders. Therefore
no federal income tax provision is required.
C. Option Accounting Principles (The Elite Growth & Income Fund) - When
the Fund sells an option, an amount equal to the premium received by the Fund is
included as an asset and an equivalent liability. The amount of the liability is
marked-to-market to reflect the current market value of the options written. The
current market value of a traded option is the last sale price. When an option
expires on its stipulated expiration date or the Fund enters into a closing
purchase transaction, the Fund realizes a gain (or loss if the cost of a closing
purchase transaction exceeds the premium received when the option was sold)
without regard to any unrealized gain or loss on the underlying security, and
the liability related to such option is extinguished. If an option is exercised,
the Fund realizes a gain or loss from the sale of the underlying security and
the proceeds of the sale are increased by the premium received. The Elite Growth
& Income Fund as a writer of an option may have no control over whether the
underlying security may be sold (call) or purchased (put) and as a result bears
the market risk of an unfavorable change in the price of the security underlying
the written option.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
D. Equalization (The Elite income Fund) - The Fund follows the
practice known as "equalization" by which a portion of the proceeds from sales
and costs of repurchases of shares of the Fund is credited or charged to
income on the date of the transaction so that undistributed net income per
share is unaffected by shares of the Fund sold or repurchased.
E. Cash Equivalent - Consists of investment in mutual fund money
market accounts.
F. Other - As is common in the industry, security transactions are
accounted for on the trade date. Dividend Income and distributions to
shareholders are recorded on the ex-dividend date. Income distributions and
capital gain distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
These differences are primarily due to differing treatments for post - October
losses. Interest income and estimated expenses are accrued daily.
Note 3 - Restricted Securities
The Funds may invest in restricted securities. Restricted securities
are securities which have not been registered under the Securities Act of 1933,
as amended, and as a result are subject to restrictions on resale. Investments
in restricted securities are valued at fair value as determined in good faith by
the Trust's Board of Trustees. There are no unrestricted securities of these
issuers. At March 31, 1996, the Elite Growth and Income Fund had investments in
restricted securities with the date of acquisition, cost, fair value and
percentage of net assets listed below:
Dates of Percentage of
Acquisition Cost Value Net Assets
STOCKS
6,000 XactLabs Services, Inc. 08/29/94 $216,000 $300,000 .78%
35,000 Optiva Corporation 04/25/94 148,750 175,000 .46%
-------- -------- -----
Total $364,750 $475,000 1.24%
======== ======== =====
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
Note 4 - Purchases and Sales of Securities
For the six months ended March 31, 1996, purchases and sales of
securities, other than options and short-term notes were as follows:
Purchases Sales
The Elite Growth and Income Fund $29,365,748 $26,068,972
The Elite Income Fund $4,371,464 $3,715,886
For The Elite Growth & Income Fund, transactions in covered call and
put options written were as follows:
Number of
Contracts* Premiums
---------- --------
Options outstanding at
beginning of year 1,260 $ 789,425
Options written 2,230 1,114,312
Options terminated in
closing purchase transactions (1,978) (1,279,342)
Options exercised (287) 76,548
Options expired (670) (334,793)
-------- -----------
Options outstanding
at September 30,1995 555 $ 366,150
======== ===========
* Each Contract represents 100 shares of common stock
Note 5 - Investment Management Fee and Other Transactions with Affiliates
The Funds retain McCormick Capital Management Inc. as their Investment
Manager. Under an Investment Management Agreement, the investment Manager
furnishes each Fund with Investment advice, office space and salaries of
non-executive personnel needed by the Funds to provide general office services.
As compensation for its services, the Manager is paid a monthly fee based upon
the average daily net assets
of each Fund. For The Elite Growth & Income Fund and The Elite Income Fund, the
rates are 1% and 7/10 of 1%, respectively, up to $250 million; 3/4 of 1% and
5/8% of 1%, respectively, over $250 million up to $500 million; and 1/2 of 1%
over $500 million for each Fund.
The Manager has undertaken that the operating expenses of each Fund for
each fiscal year (including management fees, but excluding taxes, interest and
brokerage commissions), expressed as a percentage of average daily net assets,
will not exceed the lowest rate prescribed by any state in which shares of the
Funds are qualified for sale. Currently, such limitation is 2.5% of the first
$30 million of such assets, 2% of the next $70 million, and 1.5% of any net
assets in excess of $100 million.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
March 31, 1996
Continued
Certain officers and trustees of the Funds are also officers and/or
directors of the Manager. The Law firm of Foster, Pepper & Shefelman, of which
Joseph M. Gaffney, Assistant Secretary of the Funds, is a member, received fees
of $1,343 and $553 from the Elite Growth & Income Fund and The Elite Income
Fund, respectively, for legal services rendered for the year March 31, 1996.
NOTE 6 - Concentration
Although both of the funds have a diversified investment portfolio,
there are certain credit risks due to the manner in which the portfolio is
invested which may subject the funds more significantly to economic changes
occurring in certain industries or sectors. The Elite Growth & Income Fund has
investments in excess of 10% in basic goods, capital goods, consumer goods and
services, financial intermediaries, and health care service industries. The
Elite Income Fund has investments in excess of 10% in Electric Utilities and Gas
Utilities.
