SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 15 to 33-10888
and
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Post-Effective Amendment No. 15 to 33-10888
THE EHRENKRANTZ TRUST
(Exact Name of Registrant as Specified in Chapter)
598 Madison Ave., Fourteenth Floor, New York, NY 10022
(Name and Address of Principal Executive Office)
(800) 867-8600
(Registrant's Telephone Number, including area code)
JOAN KING
598 Madison Avenue, Fourteenth Floor, New York, NY 10022
(Name and Address of Agent for Service)
Approximate Date of Proposed Public Offering:
As soon as practicable after Amendment becomes effective.
It is proposed that this filing will become effective:
___X____immediately upon filing pursuant to paragraph (b)
_______on (date) pursuant to paragraph (b)
_______60 days after filing pursuant to paragraph (a)
_______on (date) pursuant to paragraph (a) of Rule 485.
The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to Rule 24f-2.
The Notice required by Rule 24f-2 was filed with the Commission on
February 17, 2000.
<PAGE>
PROSPECTUS
THE EHRENKRANTZ TRUST
Investment Strategy
GROWTH The Ehrenkrantz Growth Fund
May 1, 2000
LIKE ALL MUTUAL FUND SHARES, THE SEC HAS NOT APPROVED OR DISAPPROVED
THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE>
CONTENTS
THE FUND
- -------------------------
Information about the Goals and Strategies
fund you should know
before investing Main Risks
Performance
Fees and Expenses
Management
Financial Highlights
Distribution and tax
information for the
fund;
YOUR ACCOUNT
- -------------------------
Information about Buying Shares
sales charges, account
transactions and services Investor Services
Selling Shares
Account Policies
Questions
FOR MORE INFORMATION
- -------------------------
Where to learn more Back Cover
about the Fund
<PAGE>
THE EHRENKRANTZ GROWTH FUND
GOALS AND STRATEGIES
- --------------------
GOAL
The fund's investment goal is capital appreciation.
PRINCIPLE INVESTMENTS
The fund will normally invest primarily in the equity
securities of companies believed by the manager to offer
favorable possibilities of capital appreciation. These
securities may either be listed or unlisted. In selecting
securities, the manager considers factors such as historical
and potential growth in revenues and earnings; assessment
of strength and quality of management; and determination
of a company's strategic positioning in its industry.
In selecting portfolio securities for the Fund the
manager goes beyond traditional financial analysis and
brings other disciplines into the selection process. This
investment philosophy involves principles of history,
the humanities, social sciences and technology. The
manager believes that these principles, when applied, allows
it to anticipate social trends and, consequently, select
portfolio securities which will benefit from the evolution
of these trends.
The fund may invest up to 40% of its assets in smaller
companies, as well as in new and emerging industries where growth
is expected to be above average. For this fund, smaller company
stocks are generally those with capitalizations of less that $100
million. From time to time the fund may have a significant
portion of its assets invested in cash or cash equivalents. The
fund generally does not, but may, invest up to 10% of its assets
in foreign securities.
Equity securities generally entitle the holder to
participate in a company's general operating results. These
include common stocks, preferred stocks and convertible
securities. Depending upon current market conditions, the
fund may invest a portion of its assets in debt securities.
Debt securities represent an obligation of the issurer to
repay a loan of money to it, and generally provide for the
payment of interest. These include bonds, notes and
debentures.
THE FUND NORMALLY INVESTS PRIMARILY IN EQUITY SECURITIES OF
COMPANIES BELIEVED TO OFFER FAVORABLE POSSIBILITIES FOR
CAPITAL APPRECIATION.
TEMPORARY INVESTMENTS
The manager may take a temporary defensive position when
it believes the markets or the economy are experiencing excessive
volatility or a prolonged general decline, or other adverse
conditions exist. Under these circumstances, the fund may be
unable to pursue its investment goal because it may not invest or
may invest less in equity securities.
MAIN RISKS
- --------------
STOCKS
While stocks have historically outperformed other asset
clases over the long term, they tend to go up and down more
dramatically over the shorter term. These price movements may
result from factors affecting individual companies, industries
or the securities market as a whole.
SMALLER COMPANIES
Historically, smaller company securities have been more
volatile in price than larger company securities, especially
over the short-term. Among the reasons for the greater price
volatility are the less certain growth prospects of smaller
companies, the lower degree of liquidity in the markets for such
securities and the greater sensitivity of smaller companies to
changing economic conditions.
In addition, small companies may lack depth of management,
they may be unable to generate funds necessary for growth or
development, or they may be developing or marketing new products
or services for which markets are not yet established and may
never become established.
Therefore, while smaller companies may offer greater
opportunities for capital growth than larger, more established
companies, they also involve greater risks and should be
considered speculative.
BECAUSE THE SECURITIES THE FUND HOLDS FLUCTUATE IN PRICE, THE VALUE
OF YOUR INVESTMENT IN THE FUND WILL GO UP AND DOWN. THIS MEANS
YOU COULD LOSE MONEY OVER SHORT OR EVEN EXTENDED PERIODS.
<PAGE>
ITEREST RATE - BONDS
When interest rates rise, debt security prices fall. When
interest rates fall, debt security prices go up. Generally,
interest rates rise during times of inflation or a growing economy,
and fall during an economic slowdown or recession. Securities
with longer maturities usually are more sensitive to interest
rate changes that securities with shorter maturities.
INVESTMENT PHILOSOPHY
The manager's investment strategy involves, to an extent,
the anticipation of social trends. This anticipation could, of
course, be wrong. In this event shareholders would be subject
to risk of loss.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF OR GUARANTEED
OR ENDORSED BY, ANY BANK, AND ARE NOT FEDERALLY INSURED BY THE
FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD,
OR ANY OTHER AGENCY OF THE U.S. GOVERNMENT. MUTUAL FUND SHARES
INVOLVE RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPLE.
More detailed information about the fund, its policies, including
temporary investments, and risks can be found in the fund's Statement of
Additional Information (SAI).
<PAGE>
FOREIGN SECURITIES
Securities of companies and governments located outside the
U.S. may involve risks that can increase the potential for losses
in the fund.
Country. General securities market movements in any country where
the fund has investments are likely to affect the value of the
securities the fund owns which trade in that country.
Company. Foreign companies are not subject to the same accounting,
auditing and financial reporting standards and practices as U.S.
companies and their stocks may not be as liquid as stocks of
similar U.S. companies. Foreign markets and their participants
generally have less government supervision and regulation in
the U.S.
Currency. To the extent the fund's investments are denominated
in foreign currencies, changes in foreign currency exchange rates
will affect the value of what the fund owns and the fund's share
price. Generally, when the U.S. dollar rises in value against a
foreign currency, an investment in that country loses value
because that currency is worth fewer U.S. dollars. Devaluation
of a currency by a country's government or banking authority also
has a significant impact on the value of any securities
denominated in that currency.
Euro. On January 1, 1999, the European Monetary Union (EMU)
introduced a new single currency, the euro, which will replace
the national currency for participating member countries. If
the fund holds investments in countries with currencies
replaced by the euro, the investment process, including trading,
foreign exchange, payments, settlements, cash accounts, custody
and accounting will be impacted.
Because this change to a single currency is new and
untested, the establishment of the euro may result in market
volatility. For the same reason, it is not possible to predict
the impact of the euro on the business or financial condition
of European issuers which the fund may hold in its portfolio,
and their impact on the value of fund shares. To the extent
the fund holds non-U.S. dollar (euro or other) denominated
securities, it will still be exposed to currency risk due to
fluctuations in those currencies versus the U.S. dollar
<PAGE>
PERFORMANCE
This bar chart and table show the volatility of the fund's
returns, which is one indicator of the risks of investing
in the fund. The bar chart shows changes in the fund's
returns from year to year over the past 10 calendar years. The
table shows how the fund's average annual total returns compare
to those of a broad-based securities market index. Of course,
past performance cannot predict or guarantee future results.
ANNUAL TOTAL RETURNS*
- --------------
<TABLE>
<S> <C>
Year Percent
1990 -1.0%
1991 9.5%
1992 8.6%
1993 9.7%
1994 3.2%
1995 16.1%
1996 4.3%
1997 8.3%
1998 4.7%
1999 21.04%
</TABLE>
<TABLE>
During the 10 year period shown in the bar chart the highest return for a
quarter was 13.54% (quarter ending 12/31/99) and the lowest return for a
quarter was (3.6%) (quarter ending 12/31/94).
AVERAGE ANNUAL TOTAL RETURNS
For the periods ended December 31, 1999
<S> <C> <C> <C>
1 Year 5 Years 10 Years
Ehrenkrantz Growth Fund 21.04% 11.9% 7.9%
S&P 500 Index** 19.53% 26.31% 16.13%
<FN>
* All fund performance assumes reinvestment of dividends
and capital gains.
** Source: Standard & Poor's Micropal. The S&P 500 Index
is an unmanaged group of widely held common stocks covering
a variety of industries. It includes reinvested dividends.
One cannot invest directly in an index, nor is an index
representative of the fund's portfolio.
</FN>
</TABLE>
<PAGE>
FEES AND EXPENSES
This table describes the fees and expenses that you may pay
if you buy and hold shares of the fund.
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum sales charge (load) *
as a percentage of offering price None
Load imposed on purchases None
Maximum Deferred Sales Charge (load) None
Exchange fee None
ANNUAL FUND OPERATING EXPENSES (expenses deducted from fund assets)
Management fees .98%
Distribution and Service (12b-1) fees None
Other Expenses 1.72%
Total annual fund operating expenses ** 2.70%
EXAMPLE
This example can help you compare the cost of investing in the fund
with the cost of investing in other mutual funds.
The example assumes you invest $10,000 for the periods shown and
then sell all of your shares at the end of those periods. The
example also assumes your investment has a 5% return each year
and the fund's operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions
your costs would be:
<TABLE>
<S> <C> <C> <C> <C>
1 year 3 Years 5 Years 10 Years
Assuming you sold your
shares at the end of
the period $ 284 $ 840 $ 1,421 $ 2,988
Assuming you stayed in
the fund $ 284 $ 840 $ 1,421 $ 2,988
<FN>
NOTE: This example should not be considered a representation of past or
future expenses. Actual expenses may be greater or less than those
shown above.
* The Fund eliminated a 4.5% sales load effective January 1, 1994.
** The Advisor assumed certain operating expenses. It intends to
continue to do so but may discontinue such practice at any time upon
thirty days written notice to shareholders. In that event, the Fund
could be responsible for total expenses up to 2.50%. This assumes
that 2.50% is representative of annual Fund operating expenses as
a percentage of the average net assets.
</FN>
</TABLE>
<PAGE>
MANAGEMENT
Ehrenkrantz King Nussbaum, Inc. ("EKN") (Investment Advisor),
598 Madison Ave., 14th Floor, New York, New York, 10022 is the
fund's investment manager.
The team responsible for the fund's management is:
Joan King, Chief Operating Officer and Secretary of EKN
Ms. King has been a Member of the Investment Committee
of the fund since its inception in 1986.
Irwin Nussbaum, Chief Executive Officer of EKN
Mr. Nussbaum has been a Member of the Investment
Committee of the fund since its inception in 1986.
The Fund pays the EKN a fee for managing the fund's assets and
making its investment decisions. For the fiscal year ended
December 31, 1999, the fund paid 0.98% of its average monthly net
assets to the manager.
<PAGE>
FINANCIAL HIGHLIGHTS
The following table provides information about the Fund's financial
performance for the past five years. It is based upon a single share
outstanding throughout each calendar year. This information has been
audited by Roy G. Hale, CPA.
<TABLE>
Year ended December 31
<S> <C> <C> <C> <C> <C>
1999 1998 1997 1996 1995
NET SHARE DATA:
Net Asset Value, beginning
of year 5.27 5.07 5.44 5.42 5.18
Investment & operating income (0.37) 0.035 0.052 0.059 0.095
Net realized & unrealized
gain (loss) on investments 1.269 0.203 0.398 0.173 0.739
Total from investment
operations 1.232 0.238 0.45 0.232 0.834
Dividends from investment
operations 0.000 0.000 0.034 0.037 0.106
Distributions fron net
realized gains 0.246 0.038 0.783 0.171 0.487
Total distributions 0.246 0.038 0.817 0.208 0.593
NAV end of period 6.26 5.270 5.070 5.440 5.420
Total return 21.04% 4.69% 8.3% 4.30% 16.10%
RATIOS/SUPPLEMENTAL DATA:
Net Assets 5,402,645 5,222,328 5,585,952 6,362,747 6,902,576
Ratio to average net assets:
Investment expenses 2.7% 2.4% 2.5% 2.4% 2.1%
Net investment &
operating income (0.7%) 0.7% 1.0% 1.1% 1.8%
Portfolio turnover 69.7% 135 112% 84% 79%
</TABLE>
<PAGE>
DISTRIBUTIONS AND TAXES;
- ----------------------------
INCOME AND CAPITAL GAINS DISTRIBUTION
The fund intends to pay a dividend at least annually
representing substantially all of the fund's net investment
income. Capital gains, if any, may be distributed annually by
the fund. The amount of the fund's distributions will vary and
there is no guarantee the funds will pay dividends.
To receive a distribution you must be a shareholder on
the record date. The record dates for the fund's distributions
will vary. Please keep in mind that if you invest in the fund
shortly before the record date of a distribution, any distribution
will lower the value of the fund's shares by the amount of the
distribution and you will receive some of your investment back
in the form of a taxable distribution. If you would like
information on upcoming record dates for the fund's distributions,
please call 1-888-278-2696.
TAX CONSIDERATIONS
In general, fund distributions are taxable to you as
either ordinary income or capital gains. This is true whether
you reinvest your distributions in additional shares of a fund
or receive them in cash. Any capital gains a fund distributes
are taxable to you as long-term capital gains no matter how
long you have owned your shares.
Every January, you will receive a statement that shows
the tax status of distributions you received for the previous
year. Distributions declared in December but paid in January
are taxable as if they were paid in December.
<PAGE>
When you sell your shares, you may have a capital gain
or loss. The individual tax rate on any gain from the sale of
your shares depends on how long you have held your shares.
Fund distributions and gains from the sale of your
shares will generally be subject to state and local income tax.
Any foreign taxes the fund pays on its investments may be passed
through to you as a foreign tax credit. Non-U.S. investors may
be subject to U.S. withholding and estate tax. You should
consult your tax advisor about federal, state, and local or
foreign tax consequences.
BACKUP WITHHOLDING
BY LAW, THE FUND MUST WITHHOLD 31% OF YOUR TAXABLE DISTRIBUTIONS
AND PROCEEDS IF YOU DO NOT PROVIDE YOUR CORRECT TAXPAYER
IDENTIFICATION NUMBER (TIN) OR CERTIFY THAT YOUR TIN IS CORRECT,
OR IF THE IRS INSTRUCTS THE FUND TO DO SO.
<PAGE>
YOUR ACCOUNT
ACCOUNT APPLICATION
If you are opening a new account, please complete and sign
the enclosed account application. To save time, you can sign up
now for services you may want on your account by completing the
appropriate sections of the application (see next page).
BUYING SHARES
Through your investment representative:
Opening an account - contact your investment representative
Adding to an account - Contact your investment representative
By Mail:
Opening an account - Make your check payable to the
Ehrenkrantz Growth Fund.
Mail the check and your signed
application to the fund at:
Ehrenkrantz Growth Fund
c/o American Data Services, Inc.
150 Motor Parkway, Suite 109
PO Box 5536
Hauppage, NY 11788-0132
Adding to an account - Make your check payable to the fund.
Include your account number on the
check.
Fill out the deposit slip from your
account statement. If you do not have
a slip, include a note with your name,
the fund name, and your account number.
Mail the check and deposit slip or note
to the fund at
c/o American Data Services, Inc.
150 Motor Parkway, Suite 109
Hauppage, NY 11788-0132
By Wire
1-888-278-2696
Opening an account - Call to receive instructions
Adding to an account- Call to receive a wire control number
and wire instructions
<PAGE>
DISTRIBUTION OPTIONS
You may reinvest distributions you receive from the fund
in an existing account of the fund. You can also have your
distributions mailed by check.
Please indicate on your application the distribution
option you have chosen, otherwise we will reinvest your
distributions.
RETIREMENT PLAN
The Fund offers a prototype IRA plan for individuals and
businesses. These plans require separate applications and their
policies and procedures may be different than those described in
this prospectus. For more information, including a free retirement
plan brochure or application, please call the fund at 1-888-278-2696.
TELEPHONE PRIVILEGES
You may elect telephone privileges when you open your
account, allowing you to sell your shares and make certain other
changes to your account by phone.
For accounts with more than one registered owner, telephone
privileges also allow the fund to accept written instructions
signed by only one owner for transactions and account changes that
could otherwise be made by phone. For all other transactions
and changes, all registered owners must sign the instructions.
As long as we take certain measures to verify telephone
requests, we will not be responsible for any losses that may
occur from unauthorized requests. Of course, you can choose not
to elect telephone exchange or redemption privileges on your
account application.
<PAGE>
SELLING SHARES
You can sell your shares at any time.
SELLING SHARES IN WRITING
Requests to sell $10,000 or less can generally be made
over the phone or with a simple letter. Sometimes, however, to
protect you and the fund we will need written instructions
signed by all registered owners, with a signature guarantee for
each owner, if:
you are selling more than $10,000 worth of shares
you want your proceeds paid to someone who is not a
registered owner
you want to send your proceeds somewhere other than the
address of record, or preauthorized bank or brokerage
firm account
you have changed the address on your account by phone
within the last 15 days
We may also require a signature guarantee on instructions
we receive from an agent, not the registered owners, or when we
believe it would protect the fund against potential claims based
on the instructions received.
A SIGNATURE GUARANTEE HELPS PROTECT YOUR ACCOUNT AGAINST FRAUD.
YOU CAN OBTAIN A SIGNATURE GUARANTEE AT MOST BANKS AND SECURITIES
DEALERS. A NOTARY PUBLIC CANNOT PROVIDE A SIGNATURE GUARANTEE.
SELLING RECENTLY PURCHASED SHARES
If you sell shares recently purchased with a check or
draft, we may delay sending you the proceeds until your check
or draft has cleared, which may take seven business days or
more. A certified or cashier's check may clear in less time.
REDEMPTION PROCEEDS
Your redemption check will be sent within seven
business days after we receive your request in proper form. We
are not able to receive or pay out cash in the form of currency.
Redemption proceeds may be delayed if we have not yet received
your signed account application.
RETIREMENT PLANS
You may need to complete additional forms to sell shares in
a retirement plan. For participants under Age 59 1/2, tax
penalties may apply. Call 1-888-278-2696 for details.
<PAGE>
SELLING SHARES
To sell some or all of your shares
Through your investment representative - Contact your investment
representative.
By mail - Send written instructions and endorsed share certificates
(if you have share certificates) to the fund at 150 Motor
Motor Parkway, Suite 109, PO Box 5536, Hauppauge, NY 11788-0132,
partnership or trust accounts may need to send additional
information.
Specify the account number and the dollar value or
number of shares you wish to sell. Be sure to include
all necessary signatures and any additional documents,
as well as signature guarantees if required.
A check will be mailed to the name(s) and address on
the account, or otherwise according to your instructions.
By phone - 1-888-278-2696
As long as your transaction is for $40,000 or less,
you do not hold share certificates and you have not
changed your address by phone within the last 15
days, you can sell your shares by phone.
A check will be mailed to the name(s) and address on
the account. Written instructions, with a signature
guarantee, are required to send the check to another
address or to make it payable to another person.
ACCOUNT POLICIES
CALCULATING SHARE PRICE
The fund calculates the net asset value per share (NAV)
each business day at the close of trading on the New York Stock
Exchange (normally 4:00 p.m. New York time). NAV is calculated by
dividing net assets by the number of shares outstanding.
The fund's assets are generally valued at their market
value. If market prices are unavailable, or if an event occurs
after the close of the trading market that materially affects the
values, assets may be valued at their fair value. If the fund
holds securities listed primarily on a foreign exchange that
trades on days when the fund is not open for business, the value
of your shares may change on days that you cannot buy or sell
shares.
Requests to buy and sell shares are processed at the NAV
next calculated after we receive your request in proper form.
WHEN YOU BUY SHARES, YOU PAY THE OFFERING PRICE. THE OFFERING
PRICE IS THE NAV.
WHEN YOU SELL SHARES, YOU RECEIVE THE NAV.
<PAGE>
ACCOUNTS WITH LOW BALANCES
If the value of your account falls below $500 because
you sell some of your shares, we may mail you a notice asking you
to bring the account back up to its applicable minimum investment
amount. If you choose not to do so within 30 days, we may close
your account and mail the proceeds to the address of record.
STATEMENT AND REPORTS
You will receive confirmations and account statements that
show your account transactions. You will also receive the fund's
financial reports every six months.
If there is a dealer or other investment representative
of record on your account, he or she will also receive
confirmations, account statements and other information about
your account directly from the fund.
<PAGE>
JOINT ACCOUNTS
Unless you specify a different registration, accounts with two or
more owners are registered as "joint tenants with right of survivorship"
shown as "Jt Ten" on your account statement). To make any ownership changes
to a joint account, all owners must agree in writing, regardless of the law
in your state.
ADDITIONAL POLICIES
Please note that the fund maintains additional policies and reserve
certain rights, including:
The fund may refuse any order to buy shares.
At any time, the fund may change its investment minimums or waive
or lower its minimums for certain purchases.
You may only buy shares of the fund where it is eligible for sale
in your state or juridiction.
In unusual circumstances, we may temporarily suspend redemptions, or
postpone the payment of proceeds, as allowed by federal securities
laws.
For redemptions over a certain amount, the fund reserves
the right to make payments in securities or other assets
of the fund, in the case of an emergency or if the
payment by check would be harmful to existing shareholders.
QUESTIONS
If you have any questions about the funds or your account,
you can write to us at c/o American Data Services, Inc., 150 Motor
Parkway, Suite 109, PO Box 5536, Hauppage, NY 11788-0132.
You can also call us at 1-888-278-2696. For your protection and
to help ensure we provide you with quality service, all calls may
be monitored or recorded.
<PAGE>
INVESTMENT APPLICATION
THE EHRENKRANTZ GROWTH FUND
c/o American Data Services, Inc. Please type or print
PO Box 5536
Hauppage, NY 11788-0132
Make check payable to the Ehrenkrantz Growth Fund
Amount of Investment $___________ ACCOUNT NUMBER_____________
($500 minimum) FOR FUND USE ONLY
INDIVIDUAL AND JOINT ACCOUNTS Joint Accounts must complete both
lines 1 and 2
1. INDIVIDUAL _______________________________________________________
First Name Middle Initial Last name Individual's
Social
Security
Number
2. JOINT OWNER - Joint accounts may be registered as "AND"
(for which both signatures are required for
every transaction), or as "OR" (for which
either signature will be acceptable).
(Check one) __ "AND" __ "OR" _____________________________________
First Middle Last
Name Initial Name
Joint ownership will be "JOINT TENANTS WITH RIGHTS OF SURVIVORSHIP"
and not "TENANTS IN COMMON" unless otherwise specified.
CORPORATIONS, ORGANIZATIONS, TRUSTS, AND PERSONS ACTING AS
FIDUCIARIES
___________________________________________________________________
Legal name Tax Identification Number
___________________________________________________________________
Name of Authorized Officer, Title
Partner, Trustee, etc.
___________________________________________________________________
Name of Authorized Officer, Title
Partner, Trustee, etc.
___________________________________________________________________
Name of Authorized Officer, Title
Partner, Trustee, etc.
___________________________________________________________________
Name of Authorized Officer, Title
Partner, Trustee, etc.
GIFTS TO MINORS (CUSTODIAL ACCOUNTS)
There may be only one custodian and one minor for each account.
__________________________ Custodian for___________________________
First Middle Last First Middle Last
Name Initial Name Name Initial Name
under the ____________ Uniform Gifts to Minors Act.________________
Donor's State Minor's Social
of Residence Security Number
<PAGE>
MAILING ADDRESS TELEPHONE NUMBERS
____________________________ Home:( )_________
Street address Office:( )_________
____________________________
City, State and Zip Code
TELEPHONE REDEMPTION PRIVILEGE
I/We hereby authorize the Fund and its disbursement agents to
honor telephone instructions to redeem shares in the Fund. I/We
elect to receive the proceeds as follows:
__ In the form of redemption check payable to the registered
shareholder and mailed to the address of record, or
__ to be transmitted by bank wire in the amount of $5,000 or
more (service charges on wires less than $5,000) to the
following bank account.
Bank Account Registration
___________________________________________________________________
Bank Account Number Routing Number
___________________________________________________________________
Name of Bank
___________________________________________________________________
Street City State Zip
I agree that neither the Fund nor its disbursement agent will be
liable for any loss, liability, cost or expense for acting upon
such instructions.
DIVIDEND REINVESTMENT
I understand that dividends and capital gains distributions to which
I am entitled will be automatically reinvested in additional shares
to be added to my account unless I specify otherwise below.
___ Pay dividends and capital gains in cash.
I have received a current prospectus and have read, understood and
agreed to its provisions. I am over 18 years of age.
Signature(s) Date Title(s),
if applicable
_____________________ ________ ___________________
_____________________ ________ ___________________
_____________________ ________ ___________________
<PAGE>
FOR MORE INFORMATION
You can learn more about the fund in the following documents:
ANNUAL/SEMIANNUAL REPORT TO SHAREHOLDERS
Includes a discussion of recent market conditions and fund
strategies, financial statements, detailed performance
information, portfolio holdings, and the auditor's report.
STATEMENT OF ADDITIONAL INFORMATION
Contains more information about the fund, its investments and
policies. It is incorporated by reference (is legally a part
of this prospectus).
For a free copy of the current annual/semiannual report or the
SAI, please call us at the number below.
Ehrenkrantz King Nussbaum, Inc.
1-800-867-8600
You can also obtain information about the fund by visiting the
SEC's Public Reference Room in Washington, DC (phone 1-800/
SEC-0330) or by sending your request and a duplicating fee to the
SEC's Public Reference Section, Washington, DC 20549-6009.
You can also visit the SEC's Internet site at http://www.sec.gov.
Investment Company Act file #811-4938
<PAGE>
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
THE EHRENKRANTZ TRUST
This Statement of Additional Information is not a prospectus and
should be read in conjunction with the prospectus of The Ehrenkrantz
Trust dated May 1, 2000, a copy of which may be obtained without
charge by calling 1-888-278-2696 or writing to the Fund at c/o
American Data Services, Inc., 150 Motor Parkway, Suite 109, PO Box 5536,
Hauppage, NY 11788-0132.
<PAGE>
THE EHRENKRANTZ TRUST
Table of Contents
Page
FUND HISTORY 1
DESCRIPTION OF THE FUND 1
INVESTMENT RESTRICTIONS 1
INVESTMENTS 3
TRUSTEES AND OFFICERS OF THE TRUST 5
PRINCIPAL SHAREHOLDERS 6
INVESTMENT ADVISOR 7
PORTFOLIO TRANSACTIONS AND BROKERAGE 9
CUSTODIAN 12
TAX STATUS 12
DETERMINATION OF THE NET ASSET VALUE 13
DIVIDENDS 14
SHAREHOLDER ACCOUNTS 14
AUDITORS 14
LEGAL COUNSEL 14
FEDERAL & STATE REGISTRATION OF SHARES 14
CAPITAL STOCK AND VOTING RIGHTS 14
PERFORMANCE INFORMATION 16
FINANCIAL STATEMENTS Appended
<PAGE>
FUND HISTORY
The Fund is a series of the Ehrenkrantz Trust which was
organized as a Massachusetts Business Trust on December 9, 1986.
It commenced operations on January 1, 1987.
DESCRIPTION OF THE FUND
The Fund is a diversified fund that seeks long-term capital
growth. It is an open-end, management investment company.
INVESTMENT RESTRICTIONS
In seeking to achieve its investment objective, the Fund has
adopted the following restrictions which are matters of fundamental
policy and cannot be changed without approval by the holders of the
lesser of: (i) 67% of a Fund's shares present or represented at
a shareholders' meeting at which the holders of more than 50% of
such shares are present or represented; or (ii) more than 50% of
the outstanding shares of the Fund.
The Fund may not:
1. Purchase the securities of any issuer if such purchase would
cause more than 5% of the value of the Fund's total assets to be
invested in securities of any one issuer (except securities of
the United States Government or any instrumentality thereof),
nor purchase more than 10% of the outstanding securities of any
one issuer.
2. Purchase securities of other investment companies.
3. Purchase or retain the securities of any issuer if those
trustees, officers or directors of the Trust or the Advisor owning
individually more than 1/2 of 1% of the securities of such issuer
together own more than 5% of the securities of such issuer.
4. Purchase, hold or deal in commodities or commodity contracts
or in real estate, but this shall not prohibit the Fund from
investing in marketable securities of companies engaged in
real estate activities or investments.
5. Borrow money except from banks for temporary or emergency
purposes (but not for the purchase of securities) and then only
in an amount not to
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exceed 5% of the value of the Fund's net assets at the time
the borrowings incurred.
6. Pledge, mortgage, hypothecate or otherwise encumber any of
it's assets.
7. Lend any money or other assets except through the purchase of
a portion of an issue of publicly distributed bonds, debentures
or other debt securities, or private issues of debt securities
(subject to the limitation in Section 8 below), or the acquisition
of repurchase agreements and commercial paper of corporations.
8. Invest in restricted securities (restricted as to disposition
under Federal securities laws) or illiquid or other securities
without readily available market quotations, including repurchase
agreements maturing in more than seven days, if as a result of
any such investment, more than 10% of the Fund's total assets
would be invested in restricted, illiquid or other securities
without readily available market quotations.
9. Act as an underwriter of securities of other issuers.
10. Invest in the securities of a company for the purpose of
management or the exercise of control.
11. Concentrate its investments in any particular industry or
industries, except that the Fund may invest not more than 25% of
the value of its total assets in a single industry.
12. Participate on a joint or joint and several basis in any
trading account in any securities.
13. Sell securities short except where a long position is held in
the same security which equals or exceeds the number of shares sold
short.
14. Purchase any securities on margin.
15. Purchase the warrants of any issuer if, as a result, more than
2% of the value of the total assets of the Fund would be invested
in warrants which are not listed on the New York Stock Exchange or
American Stock Exchange, or more than 5% of the value of the total
assets of the Fund would be invested in warrants whether or not so
listed, such warrants in each case to be valued at the lower of cost
or market, but assigning no value to
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warrants acquired by the Fund in units with or attached to debt
securities.
16. Invest in interests in oil or other mineral exploration programs.
If a percentage restriction is adhered to at the time of investment,
a later increase or decrease in percentage resulting from a change
in market value of the investment or the total assets will not
constitute a violation of that restriction.
INVESTMENTS
The following information supplements the discussion of the Fund's
investment objectives and strategy which are described in the
prospectus.
WARRANTS
The Fund may invest in warrants; however, not more than 5% of its
assets (at the time of purchase) will be invested in warrants other
than warrants acquired in units or attached to other securities.
Of such 5% not more than 2% of assets at the time of purchase may
be invested in warrants that are not listed on the New York or
American Stock Exchanges. Warrants are pure speculation in that
they have no voting rights, pay no dividends and have no right with
respect to the assets of the corporation issuing them. Warrants
basically are options to purchase equity securities at a specific
price valid for a specific period of time. They do not represent
ownership of the securities, but only the right to buy them. The
prices of warrants do not necessarily move parallel to the prices
of the underlying securities.
The Fund may sell (write) covered call options on specific
equity securities. A call option gives the holder (buyer) the
right to purchase a security at a specified price (the exercise
price) at any time before a certain date (the expiration date).
The Fund receives a premium (less a commission) for writing the
option which premium would partially or completely offset any
decline in price. If, for example, the Fund wrote an option at
$50 on the same 100 shares of ABC bought at $40 per share and now
selling for $50 per share, it might receive a premium of
approximately $600. If the market price of the
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underlying security declined to $45, the option will not be
exercised and the Fund could offset the unrealized loss of $500
by the $600 premium. On the other hand, if the market price of
the underlying security increases to $55, the option would be
exercised and the Fund will have foregone the unrealized $1,500
gain for $1,000 gain plus the $600 premium. The Fund can also
close out its position in the call option by repurchasing the
option contract separately and independent of any transaction
in the underlying security and, therefore, realize capital gain
or loss. If the Fund could not enter into such a closing
purchase transaction, it may be required to hold a security that
it may otherwise have sold to protect against depreciation.
Brokerage commissions associated with selling options are
proportionately higher than those associated with general
securities transactions.
PRIVATE PLACEMENTS (RESTRICTED SECURITIES)
The Fund may invest in restricted securities (privately placed
securities) and other securities without readily available market
quotations but will not acquire such securities and other illiquid
securities or securities without readily available market
quotations, such as repurchase agreements maturing in more than
seven days, if as a result they would comprise more than 10% of
the value of the Fund's total assets.
Restricted securities may be sold only in privately negotiated
transactions or in a public
offering with respect to which a registration statement is in effect
under the Securities Act of 1933. Where registration is required,
the Fund may be obligated to pay all or part of the registration
expenses and a considerable period may elapse between the time of
the decision to sell and the time the Fund may be permitted to sell
a security under an effective registration statement. If, during
such a period, adverse market conditions were to develop, the
Fund might obtain a less favorable price than prevailed when it
decided to sell. Restricted securities will be priced at fair
value as determined in good faith by the Board of Trustees. If
through the appreciation of restricted securities or the
depreciation of unrestricted securities, the Fund should be in a
position where more than 10% of the value
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of its net assets are invested in illiquid assets, including
restricted securities, the Fund will take appropriate steps to
protect liquidity.
TRUSTEES AND OFFICERS OF THE TRUST
Trustees and Officers of the Trust, together with their principal
business occupations during the last five years, and other
information are shown below. Each Trustee who is deemed an
"interested person," as defined in the Investment Company Act of
1940 (the "Act") is indicated by an asterisk *:
Irwin Nussbaum, Trustee and President *
Mr. Nussbaum was employed by E. Lowitz & Co., a New York Stock
Exchange, Inc. ("NYSE") member firm, from 1955 to 1972. In addition
to his other responsibilities, he supervised the over-the-counter
trading department. In 1972, he became the Manager of Retail Sales
at Ross Low Bull, Inc. (Member NYSE). From November 1973 through
September 1982, Mr. Nussbaum was Director of Institutional Sales
and a Registered Representative at Shoenberg, Hieber Inc. (Member
NYSE). In October 1982, Mr. Nussbaum joined Reich & Co., Inc.
as co-director of the retail sales division and later as Executive
Director of the Ehrenkrantz & King Division and a Vice-President
of Reich. Mr. Nussbaum left
Reich & Co. in October of 1990 and joined Ladenburg, Thalmann & Co.,
Inc. as an Executive Marketing Director. He resigned his position
at Ladenburg in August 1993. Mr. Nussbaum is also a partner in
United Research Capital Investors, a partnership formed to acquire
an Options Trading Right on the NYSE's Options Exchange, and he was
the Options Right Holder on that Exchange. Mr. Nussbaum is
Chief Executive Officer and a director of the Advisor.
Joan King, Trustee, Vice-President, Treasurer and Secretary *
Ms. King was a Registered Representative and General Partner of Ross
Low Bull & Co. from January 1965 through May 1971. She served as
Executive Vice-President and Chief Financial Officer of Ross Low
Bull, Inc. from June 1971 through October 1973. During that period,
she became the first female Associate Member of the American
Stock Exchange. In November 1973, she became an officer and
director of Shoenberg, Hieber Inc. In October 1982, she joined
Reich & Co., Inc. as co-director of the retail sales division and
later as a
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Director of the Ehrenkrantz & King Division and a Vice-
President of Reich. Ms. King is a partner in United Research
Capital Investors. She left Reich & Co. in October of 1990 and
joined Ladenburg, Thalmann & Co., Inc. as an Executive Marketing
Director. She resigned her position at Ladenburg in August 1993.
She is Chairman, President, Secretary, Treasurer and a director of the
Advisor.
Stanley H. Brown
Mr. Brown is a financial journalist and editorial consultant.
He was formerly Senior Editor of Forbes Magazine, associate
editor of Fortune Magazine and news editor of Business Week.
Arthur Walsh, Trustee *
Mr. Walsh has been an account executive with Gruntal & Co., Inc.,
Roseland, NJ since 1979.
Vincent E. Jay, Trustee
Mr. Jay is a private investor.
As of February 15, 2000, the Officers and Trustees of the
Trust owned shares of beneficial interest in the Trust as follows:
TRUSTEE SHARES
Joan King 2,089
Irwin Nussbaum 9,327
Arthur Walsh 854
Trustees and Officers of the Trust who are officers or stockholders
of the Advisor do not receive any direct remuneration from the Trust
for serving as Trustees or officers but they may be considered to
have received remuneration indirectly. Those Trustees who are not
so affiliated with the Advisor may receive a fee for each Board of
Trustees' meeting attended, plus reimbursement for out-of-pocket
expenses in attending meetings. During the year ended December 31,
1999, they received no such fees or expense reimbursements.
PRINCIPAL SHAREHOLDERS
As of February 15, 2000, the Advisor, Ehrenkrantz King Nussbaum,
Inc., 598 Madison Ave., 14th Floor, New York, NY 10022, owned
5.76% of the
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outstanding shares of the Fund. As of February 15,
2000, Anne Jackson Wallach, Eli Wallach, and H & E Eisenstodt
owned 11.92%, 20.31%, and 6.88% respectively of the outstanding
shares of the Fund. No other person owns more than 5% of the
Fund's Shares.
INVESTMENTS ADVISOR
The Advisor to the Trust is Ehrenkrantz King Nussbaum, Inc. ("EKN"),
formerly King Capital, Inc. The principal stockholders of the Advisor are
the Estate of Mr. Louis Ehrenkrantz, Mr. Irwin Nussbaum, Ms. Joan King,
Mr. Francis M. Trotta, Mr. Richard Weiner and Investor Resources Services,
Inc. The address of each is 598 Madison Ave., 14th Floor, New York, NY.
The Advisory Agreement is dated December 9, 1986. It is required to be
approved annually by the Board of Trustees or by vote of a majority of the
Fund's outstanding voting securities. In addition, and in either case, each
annual renewal must be approved by the vote of a majority of the Trustees who
are not parties to the Advisory Agreement or interested persons of any such
party, cast in person at a meeting called for the purpose of voting on such
approval. The Advisory Agreement is terminable without penalty, on 60 days'
written notice, by the Trustees, by vote of a majority of the Fund's
outstanding voting securities, or by the Advisor, and will terminate
automatically in the event of its assignment.
Under the terms of the Advisory Agreement, the Advisor manages the day
to day operations of the Fund pursuant to direction by the Fund's Board of
Trustees. The Advisor is responsible for investment decisions and supplies
investment research and portfolio management.
Under the terms of the Advisory Agreement, the Trust pays all of its
ordinary expenses of operation, such expenses of operation including, but not
being limited to, the following: (i) the expenses of maintaining its own
books of account; (ii) the expenses of maintaining one or more of its
custodians, transfer agents, agents for administration of shareholder accounts
and dividend disbursing agents; (iii) the expenses of computing the
daily net asset value of shares of the Trust; (iv) the fees and expenses
of its Trustees, excluding
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those Trustees who also may be Directors of the
Advisor, and the fees and expenses of the members of any Committee of
the Trust excluding any members who also may be Directors or officers
or employees (or all of these) of the Advisor, and who perform services
therefore and are compensated thereby; (v) the expenses of meetings of
its shareholders; (vi) the expenses of printing and mailing of all
shareholder reports and other required reports and documents provided
shareholders, including, but not limited to, the cost of printing and mailing
prospectuses to shareholders; (vii) taxes of any kind assessed against
the Trust; (viii) interest and commissions; (ix) Securities
and Exchange Commission fees; (x) State registration fees; (xi) the expenses
of Trust existence; (xii) all or part of the salaries of the Trust officers
and other employees who also may be directors or officers or employees (or all
of these) of the Advisor; (xiii) the fees of its auditors; (xiv) the fees of
its legal counsel; (xv) travel, entertainment, publications, telephone, and
communications expense; (xvi) office space rent, and (xvii) all other ordinary
expenses of operation. The Trust also pays all extraordinary expenses of
whatever kind or nature, unless such expenses have been specifically assumed
by the Advisor. For the fiscal year ended December 31, 1999, the Advisor has
assumed some of the expenses of the Fund. It may discontinue doing so at any
time upon thirty days notice to shareholders.
The assets of the Trust received for the issue or sale of each series
(Fund) and all income, earnings, profits and proceeds thereof, subject only
to the rights of creditors, are especially allocated to such series, and
constitute the underlying assets of such series. The underlying assets of
each series are required to be segregated on the books of account, and are to
be charged with the liabilities in respect of such series and with a share of
the general liabilities of the Trust. Liabilities in respect to any two
series are to be allocated in proportion to the asset value of the respective
series except where direct expenses can otherwise be fairly made. The
Trustees have the right to determine which liabilities are allocable to a
given series, and which are general or allocable to both series.
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Because of various state law requirements, the Advisor must reimburse
the Fund for annual expenses to the extent that aggregate operating expenses
of the Fund (excluding interest, taxes, brokerage commissions and extraordinary
expenses such as litigation costs) exceed in any fiscal year 2.5% of the first
$30 million of net assets of the Fund; 2% of the next $70 million, and 1.5% of
average annual net assets of the Fund in excess of $100 million. For the
purpose of determining whether the Fund is entitled to reimbursement, the
expenses of the Fund are calculated on a yearly basis. If the Fund is entitled
to reimbursement, such reimbursement will be made within 120 days of fiscal
year end.
As compensation for its services, the Trust pays to the Advisor a
monthly advisory fee computed at the annual rate of 1% of the Fund's average
daily net asset value. The advisory fees paid by the Fund for the years 1999,
1998, 1997, were $52,219, $52,817, and $57,592 respectively.
PORTFOLIO TRANSACTIONS AND BROKERAGE
The Advisor is responsible for decisions to buy and sell securities
for the Fund and for the placement of its portfolio business and the
negotiation of the commissions to be paid on such transactions. It is the
policy of the Advisor to seek the best execution at the best security price
available with respect to each transaction, in light of the overall quality of
brokerage and research services provided to the Advisor or the Fund. The best
price to the Fund means the best net price without regard to the mix between
purchase or sale price and commission, if any. In selecting broker-dealers
and in negotiating commission, the Advisor considers the firm's reliability,
the quality of its execution services on a continuing basis and its financial
condition. Brokerage may be allocated based on the sale of Fund shares
subject to the above constraints.
The Advisor intends to direct certain of the Fund's portfolio brokerage
business to EKN in its capacity as a broker dealer. The Fund will not deal
with EKN in any transaction in which EKN acts as a principal; that is, an
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order will not be placed with EKN if execution of the trade involves EKN
serving as a principal with respect to any part of the Fund's order, nor will
the Fund buy or sell over-the-counter securities with EKN acting as market
maker. If EKN is participating in an underwriting or selling group, the Fund
may not buy portfolio securities from the group except in accordance with
rules of the SEC. The Advisor believes that the limitation will not affect
the Fund's ability to achieve its investment objective.
The portfolio transactions effected through EKN are subject to certain
policies and procedures incorporating the standards of Rule 17e-1 promulgated
under the Investment Company Act of 1940 which requires that the commissions
paid EKN must be "reasonable and fair compared to the commission, fee or
other remuneration received or to be received by other brokers in connection
with comparable transactions involving similar securities during a comparable
period of time". Rule 17e-1 also contains requirements for the review of such
transactions by the Board of Trustees and requires the Advisor to furnish
reports and to maintain records in connection with such reviews. Pursuant to
rules promulgated under Section 11(a) of the Securities Exchange Act of 1934,
the Trustees have approved a written agreement that permits EKN to effect
Portfolio Transactions on National Securities Exchanges and to retain
compensation in connection with such transactions.
Mr. Nussbaum, Ms. King and Mr. Trotta, principal shareholders
of the Advisor maintain employment relationships with EKN. Hence, they may
share, indirectly, in commissions paid by the Fund to EKN. As a result of the
existence of the foregoing relationships among Mr. Nussbaum,
Ms. King, Mr. Trotta and EKN, it is conceivable that conflicts of interests
may arise from time to time between the Fund and such parties.
Section 28(e) of the Securities Exchange Act of 1934 ("Section 28(e)")
permits an investment advisor, under certain circumstances, to cause an account
to pay a broker or dealer who supplies brokerage and research services a
commission for effecting a transaction in excess of the amount of commission
another broker or dealer would have charged for effecting the transaction.
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Brokerage and research services, include (a) furnishing advice as to the value
of securities, the advisability of investing, purchasing or selling securities,
and the availability of securities or purchasers or sellers of securities, (b)
furnishing analyses and reports concerning issuers, industries, securities,
economic factors and trends, portfolio strategy, and the performance of
accounts and (c) effecting securities transactions and performing functions
incidental thereto (such as clearance, settlement and custody).
The Advisor may cause the Fund to pay a broker which provides brokerage
and research services to the Advisor a commission for effecting a securities
transaction in excess of the amount another broker would have charged for
effecting the transaction. The Advisor is of the opinion that the continued
receipt of supplemental investment research services from broker-dealers is
essential to its provision of high quality portfolio management services to
the Fund. Such higher commissions will not be paid by the Fund unless (a) the
Advisor determines in good faith that the amount is reasonable in relation to
the services in terms of the particular transaction or in terms of the
Advisor's overall responsibilities with respect to the accounts as to which it
exercises investment discretion, (b) such payment is made in compliance with
the provisions of Section 28(e), other applicable state and federal laws, and
the Advisory Agreement and (c) in the opinion of the Advisor, the total
commissions paid by the Fund will be reasonable in relation to the benefits to
the Fund over the long term. The investment advisory fee paid by the Fund
under the Advisory Agreement is not reduced as a result of the Advisor's
receipt of research services.
The Advisor seeks to allocate portfolio transactions equitably whenever
concurrent decisions are made to purchase or sell securities by the Fund. In
some cases, this procedure could have an adverse effect on the price or the
amount of securities available to a particular Fund.
In making such allocations between the Fund and such other client, the main
factors considered by the Advisor are the respective investment objectives,
the relative size of portfolio holdings of the same or comparable securities,
the availability of
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cash for investment, the size of investment commitments
generally held, and opinions of the persons responsible for recommending
the investment. During 1997, 1998 and 1999, the Fund paid an aggregate of
$6,625, $7,621 and $10,163 respectively in commissions to broker-dealers for
execution of portfolio transactions. In 1998 and 1999, EKN effected
transactions involving $3,667 and $778 or 44% and 7.6% respectively of
aggregate commissions. The portfolio turnover rate of the Fund for each of
the last three years has been 1999 - 69.7%, 1998 - 135%, and 1997 - 112%.
CUSTODIAN
As custodian of the Fund's assets, The Riggs National Bank of
Washington has custody of all securities and cash of the Fund, delivers and
receives payment for securities sold, receives and pays for securities
purchased, collects income from investments and performs other duties, all as
directed by officers of the Fund. The custodian is in no way responsible for
any of the investment policies or decisions of the Fund.
TAX STATUS
The Fund intends to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended.
Dividends paid by the Fund may be eligible for the dividends-received
deduction for corporate shareholders. For tax purposes, it does not make any
difference whether dividends and capital gain distributions are paid in cash or
in additional shares. The Fund must declare dividends equal to at least 98%
of ordinary income (as of December 31) and capital gains (as of October 31) in
order to avoid a federal excise tax and distribute 100% of ordinary income and
capital gains as of December 31 to avoid federal income tax.
At the time of your purchase, the Fund's net asset value may reflect
undistributed income, capital gains or net unrealized appreciation of
securities held by the Fund. A subsequent distribution to you of such amounts,
although constituting a return of your investment, would be taxable as either
dividends or capital gain distributions. For federal income tax purposes, the
Fund is permitted to carry forward its net realized capital losses, if any,
for
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eight years and realize net capital gains up to the amount of such losses
without being required to pay taxes on, or distribute such gains. On December
31, 1999, the books of the Fund indicated that the Fund's aggregate net assets
included unrealized appreciation of $1,347,986.
If, in any taxable year, the Fund should not qualify as a regulated
investment company under the Code: (i) the Fund would be taxed at normal
corporate rates on the entire amount of its taxable income without deduction
for dividends or other distributions to shareholders; and (ii) the Fund's
distributions to the extent made out of the Fund's current or ordinary
dividends (regardless of whether they would otherwise have been considered
capital gain dividends).
Taxation of Foreign Shareholders
The Code provides that dividends from net income will be subject to
U. S. tax. For shareholders who are not engaged in a business in the U. S.,
this tax would be imposed at the rate of 30% upon the gross amount of the
dividends in the absence of a Tax Treaty providing for a reduced rate or
exemption from U. S. taxation. Distributions of net long-term capital gains
realized by the Fund are not subject to tax unless the foreign shareholder is
a nonresident alien individual who was physically present in the U. S. during
the tax year for more than 182 days.
DETERMINATION OF NET ASSET VALUE
As set forth in the Prospectus under the caption "Determination of
Net Asset Value" the net asset value of the Fund will be determined as of the
close of trading on each day the New York Stock Exchange is open for trading.
The New York Stock Exchange is open for trading Monday through Friday except
New Year's Day, Washington's Birthday, Good Friday, Memorial Day, Independence
Day, Labor Day, Thanksgiving Day and Christmas Day. Additionally, if any of
the aforementioned holidays falls on a Saturday, the New York Stock Exchange
will not be open for trading on the
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preceding Friday and when any such holiday
falls on a Sunday, the New York Stock Exchange will not be open for trading on
the succeeding Monday, unless unusual business conditions exist, such as the
ending of a monthly or the yearly accounting period.
DIVIDENDS
All income dividends and capital gain distributions will be invested
automatically in additional Fund shares, unless the Fund is otherwise notified
in writing.
SHAREHOLDER ACCOUNTS
A shareholder's account may be terminated by the Fund on not less than
30 days' notice if, at the time of any transfer or redemption of shares in the
account, the value of the remaining shares in the account, at the current
offering price, falls below $500, provided that such reduction in net asset
value below $500 is the result of withdraws and not market fluctuations. Upon
any such termination, the shares will be redeemed at the then current net
asset value and a check for the proceeds of redemption sent within seven days
of such redemption.
AUDITORS
Roy G. Hale, CPA, La Plata, MD, has been selected as the auditor for
the Fund.
LEGAL COUNSEL
Thomas C. Henry, Esquire, whose address is 504 Talbot Street, St.
Michaels, MD 21663, is legal counsel to the Fund.
FEDERAL AND STATE REGISTRATION OF SHARES
The Fund's shares are registered for sale under the Securities Act of
1933, and the Fund or its shares are registered under the laws of those states
which require registration and in which Fund shares are offered for sale.
CAPITAL STOCK AND VOTING RIGHTS
The Fund's declaration of trust permits the Trustees to issue an unlimited
number of full and fractionsl shares of beneficial interest without par value,
which may be issued in any number or series (called Funds). The Ehrenkrantz
Growth Fund is currently the only series, although the Board of Trustees may
from time to time issue other series, the assets and liabilities
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of which will be separate and distinct from any other series. Shares issued
by a Fund have no preemptive, conversion or sinking fund rights.
Shareholders of a Fund have equal and exclusive rights as to dividends and
distributions as declared by that Fund and to the net assets of the Fund
upon liquidation or dissolution.
Shares do not have cumulative voting rights, which means that holders
of more than 50 percent of the shares voting for the election of Trustees can
elect all Trustees. Shares are transferable but have no preemptive,
conversion or subscription rights with respect to the election of Trustees
and the ratification of the selection of independent accountants. Meetings of
shareholders normally will not be held 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.
Shareholders of record of no less than two-thirds of the outstanding shares of
the Fund may remove a Trustee through a declaration in writing or by vote
cast in person or by proxy at a meeting called for that purpose. Under the
Trust Agreement, the Trustees are required to call a meeting of shareholders
for the purpose of voting on the question of removal of any such Trustee when
requested in writing to do so by the shareholders of record of not less than
10 percent of the Trust's outstanding shares.
Massachusetts law provides that shareholders could, under certain
circumstances, be held personally liable for the obligations of the Trust.
However, the Trust Agreement disclaims shareholder liability for acts or
obligations of the Trust and requires that notice of such disclaimer be given
in each agreement, obligation or instrument entered into or executed by the
Trust or a Trustee. The Trust Agreement provides for indemnification from the
Fund's property for all losses and expenses of any shareholder held personally
liable for the obligations of the Trust. Thus, the risk of a shareholder
incurring financial loss on account of shareholder liability is limited to
circumstances in which the Trust itself would be unable to meet its
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<PAGE>
obligations, a possibility that the Trust believes is remote. Upon payment
of any liability incurred by the Trust, the shareholder paying the liability
will be entitled to reimbursement from the general assets of the Trust. The
Trustees intend to conduct the operations of the Trust in a manner so as to
avoid, as far as possible, ultimate liability of the shareholders for
liabilities of the Trust.
PERFORMANCE INFORMATION
From time to time, quotations of the Fund's performance may be included in
advertisements, sales literature or reports to shareholders or prospective
investors. These performance figures are calculated in the following manner:
AVERAGE TOTAL RETURN
Average annual total return is the average annual compounded rate of return
for periods of one year, five years and ten years, all ended on the last day
of a recent calendar quarter. Average annual total return quotations reflect
changes in the price of the Fund's shares and assume that all dividends and
capital gains distributions during the respective periods were reinvested in
Fund shares. Average annual total return is calculated by computing the
average annual compounded rates of return of a hypothetical investment over
such periods, according to the following formula (average annual total
return is expressed as a percentage):
1/n
T=-----------
(ERV/P)-1
Where:
T = average annual total return
P = a hypothetical initial investment of $1,000
n = number of years
ERV = ending redeemable value: ERV is the value, at the end of
the applicable period, of a hypothetical $1,000 investment
made at the beginning of the applicable period.
16
<PAGE>
It should be noted that average annual total return is based on historical
earnings and is not intended to indicate future performance. Average annual
total return for the Fund will vary based on changes in market conditions
and the level of the Fund's expenses.
In connection with communicating its average annual total return to current
or prospective shareholders, the Fund also may compare these figures to the
performance of other mutual funds tracked by mutual fund rating services or to
unmanaged indices which may assume reinvestment of dividends but generally do
not reflect deductions for administrative and management costs.
COMPARISON OF PORTFOLIO PERFORMANCE
Comparison of the quoted non-standardized performance of various investments
is valid only if performance is calculated in the same manner. Since there
are different methods used to calculate performance when comparing performance
of the Fund with performance quoted with respect to other investment
companies or types of investments.
In Connection with communicating its performance to current or prospective
shareholders, the Fund also may compare these figures to the performance of
unmanaged indices which may assume reinvestment of dividends or interest but
generally do not reflect deductions for administrative and management costs.
Examples include, but are not limited to the Dow Jones Industrial Average, the
Consumer Price Index, Standard & Poor's 500 Composite Stock Price Index
(S&P 500), the NASDAQ OTC Composite Index, the NASDAQ Industrials Index, and
the Russell 2000 Index.
From time to time, in advertising, marketing and other Fund literature, the
performance of the Fund may be compared to the performance of broad groups of
mutual funds with similar investment goals, as tracked by independent
organizations such as Investment Company Data, Inc., Lipper Analytical
Services, Inc., CDA Investment Technologies, Inc., Morningstar, Inc.,
Value Line Mutual Fund Survey and other independent organizations. When
these organizations' tracking results are used, a Fund will be compared to
the appropriate fund category, that is, by fund objective and portfolio
holdings or the appropriate volatility
17
<PAGE>
grouping, where volatility is a measure of the Fund's risk. From time to
time, the average price-earnings ratio and other attributes of the Fund's
or the model portfolio's securities, may be compared to the average
price-earnings ratio and other attributes of the securities that comprise
the S&P 500 Index.
Statistical and other information, as provided by the Social Security
Administration, may be used in marketing materials pertaining to retirement
planning in order to estimate future payouts of social security benefits.
Estimates may be used on demographic and economic data.
Marketing and other Fund literature may include a description of the
potential risks and rewards associated with an investment in the Fund. The
description may include a "risk/return spectrum" which compares the Fund to
broad categories of funds, such as money market, bond or equity funds, in
terms of potential risks and returns. Money market funds are designed to
maintain a constant $1.00 share price and have a fluctuating yield. Share
price, yield and total return of a bond fund will fluctuate. The
description may also compare the Fund to bank products, such as certificates
of deposit. Unlike mutual funds, certificates of deposit are insured up
to $100,000 by the U.S. government and offer a fixed rate of return.
Risk/return spectrums also may depict funds that invest in both domestic and
foreigh securities or a combination of bond and equity securities.
The total return for the fiscal period ended December 31, 1999 for the Fund
was 21.04%. Returns for the Fund are based on net change in NAV and are
unannualized. Performance figures reflect voluntary fee waivers. In
the absence of fee waivers, total returns would be reduced. The investment
return and principal value of an investment in the Fund will fluctuate
so that an investor's shares, when redeemed, may be worth more or less than
their original cost.
18
<PAGE>
THE EHRENKRANTZ TRUST
COMPRISED OF
THE EHRENKRANTZ GROWTH FUND
FINANCIAL STATEMENTS
DECEMBER 31, 1999
<PAGE>
STOCK PERFORMANCE GRAPH
The following graph compares the cumulative total stockholder return on
the Fund's Common Stock (consisting solely of stock price performance) for
the last ten years with the cumulative total return (including the
reinvestment of all dividends) of (i) Standard & Poor's 500
Stock index and (ii) the Wilshire 5000 Total Market Index. There can be no
assurance that the performance of the Fund will continue into the future
with the same or similar trends depicted in the graph below.
Ten Year Cumulative Return
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Ehrenkrantz Trust 11,860 11,602 13,321 13,969 14,122 16,382 17,037 18,400 19,265 23,773
S&P 500 12,700 18,811 14,882 15,478 16,598 22,259 27,100 36,142 45,781 51,269
Wilshire 5000 9,070 11,738 12,543 13,625 13,284 17,222 21,071 27,224 33,132 40,454
</TABLE>
Assumes $10,000 invested on January 1, 1990 in each of (i) the Fund's stock;
(ii) the S&P 500 Composite Stock Index and (iii) the Wilshire 5000 Total
Market Index.
<PAGE>
MANAGEMENT'S DISCUSSION OF FUND PERFORMANCE
We are pleased to report that our continuing belief in the communications
and electronics sectors of the market rendered an average total return of
23.4% for shareholders in 1999.
As we enter 2000, the behavior of the market continues on its momentum course
led by the staggering rise in prices of new issues of Internet-related
stocks. The distorted values of these issues has caused a meteoric rise in
NASDAQ Averages, overshadowing the rest of the market.
The standards used to evaluate stocks have changed. Investment analysis,
as we know it, is not being applied to many Internet related issues. Price
earnings ratios have been disregarded in favor of price times revenues for
".com" companies that have no earnings and are not expected to generate any
for the forseeable future.
We believe this disparity is creating capital appreciation opportunities in
the out-of-favor stocks of some of America's finest corporations. Often
referred to as value stocks (many with p/e ratios of under 0) we are convinced
they will become the leaders when the current rash of over-inflated Internet-
related issues lose their luster and only a handful survive. We are
devoted to seeking out both the new leaders and the survivors for our
shareholders.
It is with much sadness that we report our dear friend and colleague,
Louis Ehrenkrantz passed away on August 22, 999 after a heroic battle with
cancer. He is sorely missed by all of us.
/s/ Irwin Nussbaum
Irwin Nussbaum
President
February 24, 2000
<PAGE>
EHRENKRANTZ GROWTH FUND
Portfolio of Investments
DECEMBER 31, 1999
Market
Common Stocks - 100% Shares Value
Chemicals - 7.21%
DuPont (EI) deNemours 2,334 153,752
Monsanto Company 4,000 142,500
-------
296,252
-------
Communications - 24.54%
AT&T Corporation-Liberty Media Group 2,000 113,500
Charter Communications, Inc. 8,000 175,000
U.S. West, Inc. 10,000 720,000
-------
1,008,500
---------
Electronics & Electrical Equipment - 16.72%
3 Com Corporation 6,000 282,000
Compaq Computer Corporation 5,000 135,313
Koninklijke Philips Electronics 2,000 270,000
-------
687,313
-------
Energy - 9.10%
AES Corporation 5,000 373,750
-------
Manufacturing - 10.93%
Tellabs, Inc. 7,000 449,313
-------
Oil & Gas Exploration and Services - 2.17%
Union Pacific Resources Group, Inc. 7,000 89,250
------
Publishing - 5.95%
Gannet Company 3,000 244,688
-------
Telecommunications - 23.38%
Nortel Networks Corporation 8,000 808,000
Young Broadcasting, Inc. (Class A) 3,000 153,000
-------
961,000
-------
Total Portfolio of Investments 4,110,066
=========
The accompanying notes are an integral part of the financial statement.
-1-
<PAGE>
THE EHRENKRANTZ GROWTH FUND
Statement of Assets and Liabilities
For the year ended December 31, 1999
Assets:
Investments at market value (cost 4,110,066
$2,762,080) (Note 1)
Cash and Cash equivalents 1,303,791
Dividents and interest receivable 7,367
---------
Total Assets 5,421,224
Liabilities
Accrued expenses 18,579
----------
Total Liabilities 18,579
----------
Net Assets applicable to outstanding shares $5,402,645
----------
Net Asset Value (NAV) per share based on
863,608 shares of beneficial interest
outstanding (offering and redemption price) $ 6.26
==========
The accompanying notes are an integral part of the financial statements.
<2>
<PAGE>
The Ehrenkrantz Growth Fund
Statement of Assets and Liabilities
Page 2
Net assets consist of
Unrealized appreciation on investments $ 1,347,986
(Note 3)
Paid in Capital 4,054,659
----------
Net Assets $5,402,645
----------
The accompanying notes are an integral part of the financial statements.
<3>
<PAGE>
THE EHRENKRANTZ GROWTH FUND
Statement of Operations
For the year ended December 31, 1999
Investment income:
Dividends $ 33,085
Interest 77,781 $ 110,816
---------
Expenses:
Management fees (Note 2) 52,219
Shareholder services & fund
accounting fees 41,250
Legal fees 25,648
Audit fees 11,158
Taxes 1,211
Custodian fees 4,359
Blue Sky registration fees 5,150
Printing expense 3,718
Miscellaneous expense 1,191
---------
Total Expenses 145,904
-------
Net investment income ( 35,088)
Net realized gain on security
transactions 345,545
Net change in unrealized appreciation
on investments 840,367
Net gain on investments 1,185,912
--------
Net increase in net assets resulting
from operations $1,150,824
The accompanying notes are an integral part of the financial statements.
-4-
<PAGE>
THE EHRENKRANTZ GROWTH FUND
Statement of Changes in Net Assets
for the years ending December 31, 1999 and 1998
<TABLE>
<S> <C> <C>
1999 1998
Operations:
Net investment income $( 35,088) $ 37,357
Net realized gain/(loss) from
investments 345,545 (142,570)
Net change in unrealized
appreciation from investments 840,367 358,881
---------- ---------
Net change in net assets resulting
from operations 1,150,824 253,668
Distribution to shareholders ( 229,665) ( 40,000)
Increase (decrease) in net assets
from trust share transactions (Note 4) (769,560) ( 584,584)
Change in net assets 151,609 ( 334,916)
Net assets at the beginning of
the period 5,251,036 5,585,952
Net assets at the end of period $5,402,645 5,251,036
---------- ----------
<FN>
The accompanying notes are an integral part of the financial statements.
</FN>
</TABLE>
-5-
<PAGE>
THE EHRENKRANTZ GROWTH FUND
Notes to Financial Statements
For the year ending December 31, 1999
1. Significant accounting policies.
The Ehrenkrantz Trust was organized on December 9, 1986 under the laws of the
Commonwealth of Massachusetts and is a business entity commonly known as a
"Massachusetts Business Trust" with the authority to issue an unlimited number
of shares of beneficial interest of separate series, without par value. The
Trust consists of the Ehrenkrantz Growth Fund.
Security valuation.
Investments in securities are valued at the last reported sales price, for
NYSE, AMEX and NASDAQ National Market listed securities, on the last business
day of the period, or, in the absence of a recorded sale, and for securities
traded in the over-the-counter market, at the most recent reported bid price;
call options written are valued at the last quoted asked price. Short-term
investments are carried at no cost, which, when combined with accrued interest
receivable, approximates market value.
Federal income taxes.
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its taxable income and long-term capital gains to its
shareholders. Therefore, federal income tax provisions are not reflected in
the financial statements.
Other.
Security transactions are accounted for on the date the securities are
purchased or sold. Dividend income is recorded on the ex-dividend date.
In determining the net realized gain and loss from sale of securities, the
cost of securities sold is determined on the basis of identifying the specific
certificates delivered against each sale.
The accompanying notes are an integral part of the financial statements.
-6-
<PAGE>
THE EHRENKRANTZ GROWTH FUND
Notes to Financial Statements - (Continued)
2. Investment advisory agreement.
The Ehrenkrantz Growth Fund has entered into an investment advisory agreement
with Ehrenkrantz King Nussbaum, Inc. Under the terms of the advisory
agreement, the advisor manages the day to day operations of the Fund pursuant
to direction by the Ehrenkrantz Trust's Board of Trustees. The advisor is
responsible for investment decisions and supplies investment research and
portfolio management. As compensation for its services, the Fund pays to the
advisor a monthly advisory fee computed at the rate of 1% of the Fund's
average daily net asset value. The fee will be reduced for any fiscal year if
the Fund's expenses, as defined, exceed certain limitations.
3. Investment transactions.
Unrealized appreciation at
December 31, 1999 $ 1,384,074
Unrealized depreciation at
December 31, 1999 36,088
Net appreciation $ 1,347,986
----------
Purchase and sale of securities other than short-term investments for the year
ended December 31, 1999 aggregated $3,714,674 and $3,910,807 respectively.
To the extent consistent with applicable law, statute, and regulations, the
Ehrenkrantz Trust's Board of Trustees determined that portfolio transactions
would be effected primarily through the firm of Ehrenkrantz King Nussbaum, Inc.
Over-the-counter purchases and sales are transacted directly with principal
market makers except in those cases in which better prices and executions may
be obtained elsewhere.
The accompanying notes are an integral part of the financial statements.
-7-
<PAGE>
THE EHRENKRANTZ GROWTH FUND
Notes to Financial Statements - (Continued)
4. Trust shares.
Transactions in trust shares were as follows:
<TABLE>
1999 1998
<S> <C> <C> <C> <C>
Shares Amount Shares Amount
Shares sold 1,984 $ 10,418 2,102 $ 10,651
Shares issued
from investment
of dividends 37,260 229,655 7,667 39,636
Shares
repurchased (180,797) (1,009,633) (127,002) (627,579)
Total change
in shares (141,553) $(769,560) (117,233) $(577,292)
</TABLE>
<TABLE>
Shares outstanding:
<S> <C> <C>
1999 1998
Beginning of year 1,005,161 1,122,394
--------- ---------
End of year 863,608 1,005,161
</TABLE>
The accompanying notes are an integral part of the financial statements.
-8-
<PAGE>
THE EHRENKRANTZ GROWTH FUND
Supplementary Information
1. Selected data for each trust share outstanding throughout calendar years
1999 and 1998.
<TABLE>
<S> <C> <C>
1999 1998
Investment income $ .119 $ .159
Expenses .156 .124
------- -------
Net income ( .037) .035
Distribution to shareholders ( .246) ( .038)
Net realized and unrealized
gain on securities 1.269 .203
-------- --------
Net increase (decrease) in net
asset value $ .986 .200
-------- --------
Net asset value:
Beginning of the period $ 5.27 $ 5.07
-------- --------
End of period $ 6.26 $ 5.27
Average annual total return 23.4% 4.7%
Ratio of operating expenses to
average net assets 2.7% 2.4%
Ratio of net investment income
to average net assets ( 0.7%) 0.7%
Portfolio turnover rate 69.7% 135.0%
Number of shares outstanding
at end of the period 863,608 1,005,161
</TABLE>
The accompanying notes are an integral part of the financial statements.
-9-
<PAGE>
ROY G. HALE
Certified Public Accountant
PO Box 2634
La Plata, MD 20646
301-870-3374
800-286-4602
Trustees and Shareholders
The Ehrenkrantz Trust
New York, New York
INDEPENDENT AUDITOR'S REPORT
I have audited the accompanying statement of assets and liabilities of
The Ehrenkrantz Trust, including the schedule of portfolio investments, as of
December 31, 1999, and the related statement of operations for the year then
ended, the statement of changes in net assets for each of the two years in the
period then ended, and selected per share data and ratios. The financial
statements and selected data and ratios are the responsibility of the Trust's
management. My responsibility is to express an opinion on the financial
statements and selected per share data and ratios based on my audit.
The audit was conducted in accordance with generally accepted auditing
standards, including confirmation of securities owned as of December 31, 1999,
by correspondence with the custodian. Those standards require that I plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and selected per share data are free of material misstatement. An
audit includes examining evidence, on a test basis, supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. I believe
that the audit provides a reasonable basis for my opinion.
In my opinion, the financial statements and selected per share data and
ratios referred to above present fairly, in all material aspects, the financial
position of The Ehrenkrantz Trust as of December 31, 1999, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and selected per share data and
ratios, in conformity with generally accepted accounting principles.
/s/ Roy G. Hale
Roy G. Hale
Certified Public Accountant
February 24, 2000
La Plata, Maryland
<PAGE>
Form N-1A
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits.
(a) Financial Statements:
Statement of Assets and Liabilities, Statement of Operations,
Statement of Changes in Net Assets, Condensed Financial
Information, Portfolio of Investments and related notes,
included in Part B of this Registration Statement.
(b) Exhibits:
(1) Agreements and Declaration of Trust (incorporated by
reference to Regis. State. No. 33-10888)
(2) By-Laws (incorporated by reference to Regis. State. No.
33-10888)
(4) Specimen Share Certificate (incorporated by reference to
Regis. State. No. 33-10888)
(5) Investment Advisory Agreement (incorporated by reference
to Regis. State. No. 33-10888)
(7) Distribution Agreement (incorporated by reference to
Regis. State. No. 3-10888, Amendment 5)
(8) Custodian Agreement (incorporated by reference to Regis.
State. No. 33-10888)
(10) Opinion and Consent of Counsel
(11) Consent of Independent Certified Public Accountants
Item 25. Persons Controlled by or under Common Control with Registrant.
As of February 15, 2000, Ehrenkrantz King Nussbaum, Inc.
(EKN), a Delaware Corporation and the Trust's Advisor, owned 5.76% of
the Fund's shares. The principal shareholders of EKN are the Estate of
Louis Ehrenkrantz (7.52%), Joan King (7.52%), Irwin Nussbaum (7.52%),
Francis M. Trotta (7.52%), Richard Weiner (7.87%) and Investor Resources
Services, Inc. (7.87%).
Item 26. Number of Holders of Securities.
As of December 31, 1999, there were 381 shareholders of record.
Item 27. Indemnification.
Please see Article VI of By-Laws (Exhibit 2). Pursuant to Rule
484 under the Securities Act of 1933, as amended, the Registrant furnishes the
following undertaking:
"Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to trustees, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or otherwise,
the Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a trustee, officer of controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such trustee, officer or controlling person in
connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the Act
and will be governed by the final adjudication of such issue."
Notwithstanding the provisions contained in the Registrant's
By-Laws, in the absence of authorization by the appropriate court on the
merits pursuant to Sections 4 and 5 of Article VI of said By-Laws, any
indemnification under said Article shall be
<PAGE>
made by Registrant only if authorized in the manner provided in either
subsection (a) or (b) of Section 6 of Article VI.
Item 28. Business and Other Connections of Investment Advisor.
Please see Parts A and B of this Registration Statement for
discussion of Investment Advisor.
Item 29. Principal Underwriters.
None
Item 30. Locations of Accounts and Records.
The accounts, books or other documents required to be
maintained by Section 31(a) of the Investment Company Act of 1940 and the
Rules thereunder will be kept by the Registrant at its offices, 598 Madison
Ave., 14th Floor, New York, NY.
The Riggs National Bank, Washington, DC, acting as custodian
will maintain records relating to such activities. American Data Services,
Inc., 150 Motor Parkway, Suite 109, Hauppauge, NY 11788 acting as Transfer
Agent and Agent for Administration of shareholder accounts, will maintain
records relating to such activities.
Item 31. Management Services.
There are no management-related service contracts not discussed
in Part A or Part B of this Registration Statement.
Item 32. Undertakings.
None.
<PAGE>
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all of
the requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this
Amendment to its Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of New York, the State of
New York, this 28th day of April, 2000.
THE EHRENKRANTZ TRUST
(Registrant)
By: /s/ Irwin Nussbaum
Irwin Nussbaum
Pursuant to the requirements of the Securities Act of 1933, this
Amendment to said Registration Statement has been signed below by the following
persons in the capacities and on the date indicated.
SIGNATURE TITLE DATE
/s/ Irwin Nussbaum President and Trustee April 28, 2000
Irwin Nussbaum
/s/ Joan King Vice-President, Secretary, April 28, 2000
Joan King and Treasurer
/s/ Stanley Brown Trustee April 28, 2000
Stanley Brown
/s/ Arthur Walsh Trustee April 28, 2000
Arthur Walsh
/s/ Vincent E. Jay Trustee April 28, 2000
Vincent E. Jay
Law Offices
Roberts & Henry
504 Talbot St.
P.O. Box 1138
St. Michaels, MD 21663
(410) 822-4456
April 29, 2000
The Ehrenkrantz Trust
598 Madison Ave., Fourteenth Floor
New York, NY 10022
Gentlemen:
The undersigned understands that The Ehrenkrantz Trust (the
"Registrant") has filed with the Securities and Exchange Commission,
Washington, DC a Post-Effective Amendment No. 15 to its Registration
Statement, on Form N-1A, under the Securities Act of 1933 and the Investment
Company Act of 1940.
The undersigned has examined the Registrant's agreement and
Declaration of Trust, By-Laws, the Registration Statement of Form N-1A
including all exhibits thereto, as well as such other records and documents
as have been deemed necessary. Based upon such examinations, the undersigned
is of the opinion that:
1. The Registrant has been duly organized and is validly
existing in good standing as a business trust under the laws of the
Commonwealth of Massachusetts; and
2. The shares of beneficial interest of the Registrant (or of
any series thereunder) to be offered to the public will be legally issued,
fully paid and non-assessable when said shares have been issued and sold in
accordance with the terms and in the manner set forth in the Registrant's
Registration Statement on Form N-1A.
The undersigned hereby consents to the filing of this opinion as an
exhibit to the Registrant's Registration Statement of Form N-1A.
Sincerely,
Roberts & Henry
By: /s/ Thomas C. Henry
Thomas C. Henry
ROY G. HALE
Certified Public Accountant
301-870-3374 P.O. Box 2634
800-286-4602 LaPlata, MD 20646
CONSENT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNT
I hereby consent to the inclusion of my report, dated February 24, 2000, in
the Registration Statement being filed under the Securities Act of 1933 and
the Investment Company Act of 1940 by The Ehrenkrantz Growth Fund relating to
the financial statements, as of December 31, 1999, referred to therein.
I also consent to the reference to my practice as an independent certified
public accountant.
Roy G. Hale
Certified Public Accountant
March 6, 2000
La Plata, Maryland
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-END> DEC-31-1999
<INVESTMENTS-AT-COST> 2,762,080
<INVESTMENTS-AT-VALUE> 4,110,066
<RECEIVABLES> 7,367
<ASSETS-OTHER> 1,303,791
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 5,421,224
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 18,579
<TOTAL-LIABILITIES> 18,579
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 4,054,659
<SHARES-COMMON-STOCK> 863,608
<SHARES-COMMON-PRIOR> 1,005,161
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 1,347,986
<NET-ASSETS> 5,402,645
<DIVIDEND-INCOME> 33,035
<INTEREST-INCOME> 77,781
<OTHER-INCOME> 0
<EXPENSES-NET> 145,904
<NET-INVESTMENT-INCOME> (35,088)
<REALIZED-GAINS-CURRENT> 345,545
<APPREC-INCREASE-CURRENT> 840,367
<NET-CHANGE-FROM-OPS> 1,150,824
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 229,655
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1,984
<NUMBER-OF-SHARES-REDEEMED> 180,797
<SHARES-REINVESTED> 37,260
<NET-CHANGE-IN-ASSETS> 151,609
<ACCUMULATED-NII-PRIOR> 28,737
<ACCUMULATED-GAINS-PRIOR> (141,403)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 52,219
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 145,904
<AVERAGE-NET-ASSETS> 5,312,487
<PER-SHARE-NAV-BEGIN> 5.20
<PER-SHARE-NII> (0.04)
<PER-SHARE-GAIN-APPREC> 1.37
<PER-SHARE-DIVIDEND> (0.27)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 6.26
<EXPENSE-RATIO> 2.7
</TABLE>
