[LOGO] ASM INDEX 30 FUND
SEMI-ANNUAL REPORT
April 30, 1999
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ASM INDEX 30 FUND, INC.
Portfolio of Investments
April 30, 1999
(Unaudited)
Percent of Shares Value
Total Net
COMMON STOCKS: Assets
AEROSPACE
Boeing Co. 11,600 $ 471,250
United Technologies Corp. 11,600 1,680,550
7.8% 2,151,800
ALUMINUM
Aluminum Company of America 2.6% 11,600 722,100
AUTO AND TRUCK
General Motors Corp. 3.8% 11,600 1,031,675
BANKING
J.P. Morgan & Co. 5.7% 11,600 1,563,100
BEVERAGE
Coca-Cola Co. 2.9% 11,600 788,800
CHEMICAL
E.I. du Pont de Nemours & Co. 11,600 819,250
Union Carbide Corp. 11,600 601,750
5.2% 1,421,000
COMPUTER & PERIPHERALS
International Business Machines Corp. 8.8% 11,600 2,426,575
CONSUMER PRODUCTS
Procter & Gamble Co. 4.0% 11,600 1,088,225
DIVERSIFIED
AlliedSignal, Inc. 11,600 681,500
Minnesota Mining & Manufacturing Co. 11,600 1,032,400
6.2% 1,713,900
DRUG
Merck & Co., Inc. 3.0% 11,600 814,900
ELECTRICAL EQUIPMENT
General Electric Co. 4.5% 11,600 1,223,800
FINANCIAL SERVICES
American Express Co. 5.5% 11,600 1,515,975
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
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ASM INDEX 30 FUND, INC.
Portfolio of Investments
April 30, 1999
(Unaudited)
Percent of Shares Value
Total Net
COMMON STOCKS (continued): Assets
HEALTH
Johnson & Johnson 4.1% 11,600 $1,131,000
INSURANCE
Citigroup, Inc. 3.2% 11,600 872,900
MACHINERY
Caterpillar Inc. 2.7% 11,600 746,750
MULTIMEDIA
Walt Disney Co. 1.3% 11,600 368,300
OFFICE AUTOMATION & EQUIPMENT
Hewlett-Packard Co. 3.3% 11,600 914,950
OIL/GAS
Chevron Corp. 11,600 1,157,100
Exxon Corp. 11,600 963,525
7.7% 2,120,625
PAPER & FOREST PRODUCTS
International Paper Co. 2.3% 11,600 618,425
PHOTOGRAPHIC EQUIPMENT AND SUPPLIES
Eastman Kodak Co. 3.2% 11,600 865,650
RESTAURANT
McDonald's Corp. 1.8% 11,600 491,550
RETAIL STORE
Sears, Roebuck & Co. 11,600 533,600
Wal-Mart Stores, Inc. 11,600 533,600
3.9% 1,067,200
TELECOMMUNICATION SERVICES
AT&T Corp. 2.1% 11,600 585,825
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
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ASM INDEX 30 FUND, INC.
Portfolio of Investments
April 30, 1999
(Unaudited)
Percent of Shares or Value
Total Net Principal
COMMON STOCKS (continued): Assets Amount
TIRE AND RUBBER
Goodyear Tire & Rubber Co. 2.4% 11,600 $ 663,375
TOBACCO
Philip Morris Companies, Inc. 1.5% 11,600 406,725
TOTAL COMMON STOCKS
(Cost $20,229,459) 99.6%* 27,315,125
SHORT-TERM INVESTMENT
Firstar Bank
Treasury Fund $ 123,566 123,566
TOTAL SHORT-TERM INVESTMENT 0.5% 123,566
(Cost $123,566)
TOTAL INVESTMENTS 100.0% 27,438,691
(Cost $20,353,025)
LIABILITIES IN EXCESS OF OTHER ASSETS -0.0% (12,201)
TOTAL NET ASSETS 100.0% $27,426,490
* Total consists of individual percentages which have been rounded.
The accompanying notes are an integral part of these financial statements.
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ASM INDEX 30 FUND, INC.
Statement of Assets and Liabilities
April 30, 1999
(Unaudited)
Assets:
Investments in common stocks, at market $ 27,315,125
value (cost $20,229,459)
Short-term investment, at cost 123,566
Interest and dividends receivable 16,241
Prepaid expenses and other assets 58,986
Total Assets 27,528,918
Liabilities:
Payable for capital shares redeemed 12,646
Payable to current investment advisor 1,874
Accrued reserve and general operating expenses 37,667
Accrued expenses 50,241
Total Liabilities 102,428
Net Assets $ 27,426,490
Components of Net Assets:
Capital paid-in $ 20,174,631
Accumulated distributions in excess of net investment income (354,214)
Accumulated undistributed net realized gains from
investment transactions 520,407
Net unrealized appreciation of investments 7,085,666
Total Net Assets $ 27,426,490
Capital Shares Outstanding
($0.001 par value, 1,000,000,000 shares authorized) 1,239,963
Net Asset Value - Offering and Redemption Price Per Share$ 22.12
The accompanying notes are an integral part of these financial statements.
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ASM INDEX 30 FUND, INC.
Statement of Operations
For the Six Months Ended April 30, 1999
(Unaudited)
Investment Income:
Dividends $ 212,746
Interest 3,799
Total investment income 216,545
Expenses:
Management fees 10,111
Audit fees 9,858
Custodian fees 13,258
Trustee fees 19,601
Legal expense 66,440
Administrative fees 8,217
Registration and filing fees 16,575
Transfer agent and accounting fees 22,164
Printing and postage 2,456
General operating expense 85,603
Reserve expense 260,000
Other expenses 1,305
Total expenses 515,588
Less: Reimbursement of expenses by advisor (155,975)
Total expenses--net 359,613
Investment loss--net (143,068)
Realized and Unrealized Gains from Investments:
Net realized gains from investment transactions 1,309,158
Change in unrealized appreciation of investments 4,719,988
Net realized and unrealized gains from investments 6,029,146
Net Increase in Net Assets Resulting from Operations $ 5,886,078
The accompanying notes are an integral part of these financial statements.
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ASM INDEX 30 FUND, INC.
Statements of Changes in Net Assets
Six Months Year
Ended Ended
April 30, 1999 October 31,
(Unaudited) 1998
Increase in net assets:
Operations:
Net investment income (loss) $ (143,068) $ 527,096
Net realized gains from investment transactions 1,309,158 3,568,516
Change in unrealized appreciation of investments 4,719,988 592,550
Net increase in net assets resulting from 5,886,078 4,688,162
operations
Distributions to shareholders:
From net investment income (211,146) (453,542)
From net realized gains (1,509,117) (1,846,825)
Net decrease in net assets resulting from (1,720,263) (2,300,367)
distributions
Capital share transactions:
Proceeds from shares issued 6,822,124 79,003,347
Reinvestment of distributions 1,682,128 1,766,644
Cost of shares redeemed (14,778,638) (74,749,547)
Net increase (decrease) in net assets (6,274,386) 6,020,444
resulting from capital share transactions
Total increase (decrease) in net assets (2,108,571) 8,408,239
Net assets - beginning of period 29,535,061 21,126,822
Net assets - end of period $ 27,426,490 $ 29,535,061
Accumulated distributions in excess of net $ (354,214)$ 0
investment income
Changes in shares outstanding:
Shares issued 347,473 4,211,829
Shares issued in connection with reinvestment 89,132 99,745
of distributions
Shares redeemed (749,550) (3,986,563)
Net increase (decrease) in shares outstanding (312,945) 325,011
The accompanying notes are an integral part of these financial statements.
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ASM INDEX 30 FUND, INC.
Financial Highlights
<TABLE>
<CAPTION>
Six Months Years Ended October 31,
Ended April
April 30,
1999 (b) 1998 1997 1996 1995 (a) 1994 (a)
(Unaudited)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.02 $ 17.21 $ 14.13 $ 11.37 $ 9.78 $ 10.07
Investment operations:
Net investment income (loss) (0.12) 0.32 0.18 0.08 0.00 0.56
Net gains (losses) from investments
(realized and unrealized) 4.62 2.54 3.34 2.76 1.77 (0.16)
Total from investment operations 4.50 2.86 3.52 2.84 1.77 0.40
Distributions:
From net investment income (0.17) (0.27) (0.18) (0.07) (0.05) (0.52)
In excess of net investment income 0.00 0.00 (0.11) (0.01) (0.13) 0.00
From net realized gains (1.23) (0.78) (0.15) 0.00 0.00 0.00
Tax return of capital 0.00 0.00 0.00 0.00 0.00 (0.17)
Total distributions (1.40) (1.05) (0.44) (0.08) (0.18) (0.69)
Net asset value, end of period $ 22.12 $ 19.02 $ 17.21 $ 14.13 $ 11.37 $ 9.78
Total return 24.93%(1) 17.13% 25.18% 25.01% 18.10% 3.97%
Ratios/supplemental data:
Net assets, end of period (000) $ 27,426 $ 29,535 $21,127 $ 9,315 $ 9,704 $ 7,277
Ratio of expenses to average net assets * 2.85%(2)(c) 0.18% 0.42% 1.86% 3.01%** 0.75%
Ratio of net investment income (loss) to average
net assets * (1.14%)(2) 1.60% 1.51% 0.53% 0.04% 2.17%
Portfolio turnover rate *** 30% (1) 196% 265% 391% 340% 1193%
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*Ratios are presented net of fees voluntarily reduced. If such voluntary fee reductions had not occured,
the ratios would have been as follows:
Ratio of expenses to average net assets 4.09%(2) 0.91% 1.05% 2.59% 5.77% 2.94%
Ratio of net investment income (loss)
to average net assets (2.38%)(2) 0.87% 0.88% (0.20%) (2.72%) (0.02%)
As a result of certain tax adjustments necessitated by the Fund's failure
to qualify as a regulated investment company for the years ended October
31, 1995 and 1994, as well as other adjustments, the gross expense ratios
previously reported for these periods have been restated.
<FN>
**Includes $50,460 of interest expense not subject to the expense reimbursement
agreement.
***The Fund continues to be as fully invested in equities as possible.
Therefore, portfolio turnover is higher than most equity mutual funds because
purchases and sales of securities are necessary for settlement of transactions
requested by Fund shareholders.
(1) Not Annualized
(2) Annualized
(a) Audited by predecessor auditor.
(b) Prior to March 1, 1999, Vector Index Advisors, Inc. served the Fund as
investment advisor.
(c) Ratio includes amounts related to the general operating expense and general
reserve expense recognized as a result of the termination of the investment
advisory agreement with the former Advisor (see Note 2 of the Notes to
Financial Statements). If such expenses had not been incurred, the ratio of
expenses to average net assets would be 0.57% (annualized).
</FN>
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
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ASM INDEX 30 FUND, INC.
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 1999
(UNAUDITED)
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ASM Index 30 Fund, Inc. (the "Fund") was incorporated in Maryland on April
25, 1990 and is registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), as a no-load, diversified, open-end management investment
company. The Fund has an investment objective of providing total return through
a combination of capital appreciation and current income.
1. MANAGEMENT OF THE FUND
The Fund is managed by the Board of Directors (the "Board") which is
responsible for protecting the interests of shareholders. The members of the
Board are experienced businesspersons who meet throughout the year to oversee
the Fund's activities, review contractual arrangements with companies that
provide services to the Fund, and review Fund performance.
On December 23, 1998, at a meeting of the Board, the Board voted to notify
Vector Index Advisors, Inc. (the "former Advisor") of the termination of its
investment advisory agreement effective at the close of business on February 28,
1999. During the intervening period, the Board solicited proposals from other
funds and advisors, and considered alternative arrangements. Such alternatives
included a recommendation that shareholders vote to approve a new investment
advisory relationship with another advisor. On February 26, 1999, the Board
appointed ORBITEX Management, Inc. ("ORBITEX") to serve as the investment
advisor (the "advisor") to the Fund commencing March 1, 1999, for an interim
period of up to 120 days.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements. The policies are in
conformity with generally accepted accounting principles. Preparation of the
financial statements requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of income and expenses for the
period.
SECURITY VALUATION
Portfolio securities are valued at the closing price, as reported by the
New York Stock Exchange, on the day of valuation.
SECURITY TRANSACTIONS
The Fund records purchases and sales of investments one business day after
trade date. Realized gains and losses from sales of investments are calculated
on the specific identification basis. Interest income is recognized on the
accrual basis, and dividend income is recorded on the ex-dividend date.
REPURCHASE AGREEMENTS
Repurchase agreements are transactions in which the Fund purchases
securities from a bank or recognized securities dealer and simultaneously
commits to resell that security to the bank or dealer at an agreed-upon date and
price reflecting a market rate of interest unrelated to the coupon rate or
maturity of the purchased security. The Fund may invest in repurchase agreements
with institutions believed by ORBITEX to present minimum credit risk. Each
repurchase agreement is recorded at cost. The Fund requires that the securities
purchased in a repurchase agreement be transferred to the custodian in a manner
sufficient to enable the Fund to obtain those securities in the event of a
counterparty default. The seller, under the repurchase agreement, is required to
maintain the value of the securities at least equal to the repurchase price,
including accrued interest.
CASH AND CASH EQUIVALENTS
Cash and cash equivalents consist of cash on deposit with the custodian.
EXPENSES
The Fund had received a commitment from its former Advisor (the "expense
commitment") that the former Advisor would waive payment of its advisory fee, or
would otherwise pay to the Fund amounts by which the actual expenses of the Fund
exceed 0.18% of the Fund's average net assets. In December 1998, the Board was
<PAGE>
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ASM INDEX 30 FUND, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 1999
(UNAUDITED)
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advised by the former Advisor of financial information that required the Board
to consider whether the former Advisor would be able to continue to fulfill the
expense commitment in the future.
Due to the aforementioned situation, the Board established a general
reserve and an operating reserve for expenses so that the Fund could continue
operations. The general reserve is used to pay legal, audit and other fees
associated with the termination of the investment advisory agreement with the
former Advisor. The operating reserve is used to pay certain operating expenses
of the former Advisor.
On March 10, 1999, the Board voted to eliminate the expense commitment.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions to shareholders are recorded on the ex-dividend date. On a
quarterly basis, the Fund declares and pays dividends from net investment
income, if any. On an annual basis, the Fund declares and pays net capital gain
dividends, if any.
Dividends from net investment income and net capital gain dividends are
determined in accordance with federal income tax regulations that may differ
from generally accepted accounting principles. These differences are primarily
due to deferrals of certain losses and the Fund's use of the accounting practice
of tax equalization, whereby a portion of the costs of capital shares redeemed
is attributable to distributions to shareholders. Permanent book and tax basis
differences have been reclassified among the components of net assets.
FEDERAL INCOME TAXES
The Fund intends to continue to comply with the requirements of the
Internal Revenue Code that are applicable to regulated investment companies and
to distribute all of its taxable income to its shareholders.
3. INVESTMENT ADVISORY FEES
The Fund operates under an Investment Management Agreement (the
"Agreement") with ORBITEX. The Agreement provides for compensation to ORBITEX at
an annual rate of 0.08% of the Fund's average daily net assets. Pursuant to the
Agreement, ORBITEX provides continuous supervision of the investment portfolio
and pays the cost of compensation of the officers of the Fund, and occupancy and
certain clerical and administrative costs involved in portfolio management. The
Fund bears all other costs and expenses.
The interim Agreement dated February 28, 1999 between the Fund and ORBITEX
became effective on March 1, 1999, and is effective for no more than 120 days
pending a shareholder meeting and vote regarding a new investment management
agreement. Certain officers of the Fund are also officers of the advisor.
4. INVESTMENT TRANSACTIONS
For the six months ended April 30, 1999, purchases and sales of investment
securities (excluding short-term securities) were $7,752,814 and $14,754,408,
respectively. As of April 30, 1999, the aggregate cost basis of investments for
Federal income tax purposes was $21,141,777 and net unrealized appreciation of
investments for Federal income tax purposes was comprised of the following:
Gross unrealized appreciation of investments $ 7,332,686
Gross unrealized depreciation of investments (1,035,771)
-------------------
Net unrealized appreciation of investments $ 6,296,915
===================
5. FINANCIAL HIGHLIGHTS RESTATEMENT
During the year ended October 31, 1996, the Fund, in consultation with its
auditors and legal counsel, determined, based on information available at the
time, that the Fund did not qualify as a regulated investment company under the
Internal Revenue Code for the years ended October 31, 1995 and 1994. As such,
the Fund would be subject to accrued Federal income taxes and interest of
approximately $1,312. The former Advisor has agreed to pay these costs.
<PAGE>
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ASM INDEX 30 FUND, INC.
NOTES TO FINANCIAL STATEMENTS, CONTINUED
APRIL 30, 1999
(UNAUDITED)
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Also, advisory fees in the amount of $23,443 for the period from April 16,
1995 to October 31, 1995 should not have been accrued by the Fund nor reimbursed
by the former Advisor. As a result, the expense ratios before reimbursement in
the Financial Highlights have been restated to reflect these changes. Prior to
restatement, such ratios were 5.94% and 2.55% for the years ended October 31,
1995 and 1994, respectively. All amounts discussed above as well as amounts due
under statutory and voluntary expense limitations are reflected in the
receivable from advisor on the Statement of Assets and Liabilities.
6. LEGAL PROCEEDINGS
On February 8, 1999 and on June 2, 1999 suits were filed in the Thirteenth
Judicial Circuit Court, Hillsborough County, Florida against, Steve H. Adler, a
former director and officer of the Fund, Vector Index Advisors, Inc., the former
investment advisor of the Fund, the Fund, and, in the case of the latter suit,
Mutual Funds Service Co., the administrator, fund accountant, and transfer
agent, alleging that Mr. Adler wrongfully diverted monies intended for or
previously invested in the Fund. The relief sought is the recovery of the
investment amounts and interest thereon, additional general, consequential and
incidental damages, legal costs and disbursements, and declaratory and
injunctive relief to preclude the Fund dissipation of its assets. With the
possible exception of the former director and officer of the Fund, the Fund had
no knowledge of these alleged misappropriations. At present time, the liability
of the Fund, if any, is not readily determinable.
7. MERGER
A meeting of the shareholders of the Fund is scheduled for July 2, 1999 for
the principal purpose of voting to merge the assets and liabilities of the Fund
into a series of the ORBITEX Group of Funds, the ORBITEX Focus 30 Fund (the
"Focus 30 Fund") in a tax-free reorganization. If the merger is approved,
shareholders as of the date of the merger will become shareholders of the Focus
30 Fund's Class D shares and will not be subject to a sales charge. ORBITEX
Management, Inc., as the investment advisor to the Focus 30 Fund, will continue
to supervise the investment of the Fund's assets.
<PAGE>
PLEASE CONTACT US
ASM INDEX 30 FUND, INC.
c/o ORBITEX MANAGEMENT, INC.
410 PARK AVENUE
NEW YORK CITY, NY
10022
(212) 891-7900
TRANSFER AGENT
MUTUAL FUND SERVICES CO., INC.
6000 MEMORIAL DRIVE
DUBLIN, OHIO 43017
1-800-333-4276
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INDEX 30 FUND
This report must be preceded or accompanied by the Prospectus of ASM Index
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