As filed with the Securities and Exchange Commission on June 23, 1997
1933 Act Registration No. 33-68704
1940 Act Registration No. 811-8006
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [_]
Pre-Effective Amendment No. ___ [_]
Post-Effective Amendment No. 17 [X]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT
OF 1940 [_]
Amendment No. 19 [X]
(Check appropriate box or boxes)
MORGAN GRENFELL INVESTMENT TRUST
(Exact name of registrant as specified in Charter)
885 Third Avenue
New York, New York 10022
(Address of Principal Executive Offices)
Registrant's Telephone Number,
including Area Code: 212-230-2600
Copy to:
James E. Minnick Ernest V. Klein, Esq.
Morgan Grenfell Capital Management, Inc. Hale and Dorr
885 Third Avenue Sixty State Street
New York, New York 10022 Boston, Massachusetts 02109
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
[X] on June 23, 1997 pursuant to paragraph (b) of Rule 485.
Registrant has registered an indefinite number of shares pursuant to Rule 24f-2
under the Investment Company Act of 1940, as amended. Registrant filed a Rule
24f-2 Notice for its fiscal year ended October 31, 1996 on December 23, 1996.
<PAGE>
CROSS REFERENCE SHEET FOR PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
COVERING INSTITUTIONAL SHARES OF MORGAN GRENFELL INVESTMENT TRUST
(as required by Rule 495)
Morgan Grenfell Investment Trust
<TABLE>
<CAPTION>
N-1A Item No. Location
- ------------- --------
<S> <C> <C>
Part A
Item 1. Cover Page Cover Page
Item 2. Synopsis Expense Information
Item 3. Condensed Financial Information Financial Highlights
Item 4. General Description of Registrant Cover Page; Investment Objectives and
Policies; Description of Securities and
Investment Techniques and Related
Risks; Additional Investment
Information; Organization and Shares of
the Trust
Item 5. Management of the Fund Management of the Funds; Microcap
Investment Results
Item 6. Capital Stock and Other Securities Dividends, Distributions and Taxes;
Organization and Shares of the Trust;
Purchase of Shares
Item 7. Purchase of Securities Being Purchase of Shares;
Offered Net Asset Value
Item 8. Redemption or Repurchase Redemption of Shares
Item 9. Pending Legal Proceedings Not Applicable
Part B
Item 10. Cover Page Cover Page
Item 11. Table of Contents Table of Contents
Item 12. General Information and History Not Applicable
N-1A Item No. Location
- ------------- --------
<PAGE>
Item 13. Investment Objectives and Policies Additional Information on Fund
Investments and Strategies and Related
Risks; Investment Restrictions;
Investment Advisory and Other Services
Item 14. Management of the Fund Trustees and Officers
Item 15. Control Persons and Principal Trustees and Officers;
Holders of Securities General Information About
The Trust
Item 16. Investment Advisory and Investment Advisory and
Other Services Other Services; Additional Information
Item 17. Brokerage Allocation and Other Portfolio Transactions
Practices
Item 18. Capital Stock and Other General Information About
Securities the Trust
Item 19. Purchase, Redemption and Net Asset Value
Pricing of Securities Being
Offered
Item 20. Tax Status Taxes
Item 21. Underwriters Investment Advisory and Other Services
Item 22. Calculation of Performance Data Performance Information
Item 23. Financial Statements Financial Statements
Part C
</TABLE>
Information required to be included in Part C is set forth under the appropriate
Item, so numbered, in Part C to this Registration Statement.
-2-
<PAGE>
CROSS REFERENCE SHEET FOR PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION
COVERING SERVICE SHARES OF MORGAN GRENFELL INVESTMENT TRUST
(as required by Rule 495)
Morgan Grenfell Investment Trust
<TABLE>
<CAPTION>
N-1A Item No. Location
- ------------- --------
<S> <C> <C>
Part A
Item 1. Cover Page Cover Page
Item 2. Synopsis Expense Information
Item 3. Condensed Financial Information Financial Highlights
Item 4. General Description of Registrant Cover Page; Investment Objectives and
Policies; Description of Securities and
Investment Techniques and Related
Risks; Additional Investment
Information; Organization and Shares of
the Trust
Item 5. Management of the Fund Management of the Funds; Microcap
Investment Results
Item 6. Capital Stock and Other Securities Dividends, Distributions and Taxes;
Organization and Shares of the Trust;
Purchase of Service Shares
Item 7. Purchase of Securities Being Purchase of Service Shares;
Offered Net Asset Value
Item 8. Redemption or Repurchase Redemption of Service Shares
Item 9. Pending Legal Proceedings Not Applicable
Part B
Item 10. Cover Page Cover Page
Item 11. Table of Contents Table of Contents
Item 12. General Information and History Not Applicable
N-1A Item No. Location
- ------------- --------
-3-
<PAGE>
Item 13. Investment Objectives and Policies Additional Information on Fund
Investments and Strategies and Related
Risks; Investment Restrictions;
Investment Advisory and Other Services
Item 14. Management of the Fund Trustees and Officers
Item 15. Control Persons and Principal Trustees and Officers;
Holders of Securities General Information About
The Trust
Item 16. Investment Advisory and Investment Advisory and
Other Services Other Services; Additional Information
Item 17. Brokerage Allocation and Other Portfolio Transactions
Practices
Item 18. Capital Stock and Other General Information About
Securities the Trust
Item 19. Purchase, Redemption and Net Asset Value
Pricing of Securities Being
Offered
Item 20. Tax Status Taxes
Item 21. Underwriters Investment Advisory and Other Services
Item 22. Calculation of Performance Data Performance Information
Item 23. Financial Statements Financial Statements
Part C
</TABLE>
Information required to be included in Part C is set forth under the appropriate
Item, so numbered, in Part C to this Registration Statement.
-4-
<PAGE>
SUPPLEMENT DATED JUNE 23, 1997
TO PROSPECTUS DATED MARCH 7, 1997 FOR
INSTITUTIONAL SHARES OF THE FOLLOWING FUNDS:
Morgan Grenfell Fixed Income Fund
Morgan Grenfell Municipal Bond Fund
Morgan Grenfell Short-Term Fixed Income Fund
Morgan Grenfell Short-Term Municipal Bond Fund
Morgan Grenfell Smaller Companies Fund
Morgan Grenfell Microcap Fund
Morgan Grenfell Large Cap Growth Fund
Morgan Grenfell Capital Management, Inc. ("MGCM") has agreed, effective as
of July 1, 1997, to change the limit on annual operating expenses for
institutional shares of Morgan Grenfell Microcap Fund from 1.75% to 1.49% of
average daily net assets attributable to such shares. Accordingly, beginning on
July 1, 1997, the following disclosure should be substituted for the operating
expense information that currently appears for the Fund in the expense table on
page 4 of the Prospectus and the example information that currently appears for
the Fund on page 5 of the Prospectus:
Annual Fund Operating Expenses Microcap
(as a percentage of average net assets) Fund*
--------
Advisory Fees ......................................................... 1.50%
Other Expense ......................................................... 0.66%
Reduction of Advisory Fee and
Expense Limitation by Adviser** ....................................... (0.67)%
Net Fund Operating Expenses (after
advisory fee reduction and expense
limitation)** ......................................................... 1.49%
- ----------
* Microcap Fund was not operational during the fiscal year ended October 31,
1996.
** MGCM has agreed to reduce its advisory fee and to make arrangments to
limit certain other expenses to the extent necessary to limit Fund Operating
Expenses for institutional shares of Microcap Fund, on an annual basis, to 1.49%
of the Fund's assets attributable to such shares. The above table and the
following example reflect this voluntary agreement. In its sole discretion, MGCM
may terminate or modify this agreement at any time after October 31, 1997. The
purpose of the agreement is to enhance the Fund's total return during the period
when, because of its smaller size, fixed expenses have a more significant impact
on total return. After giving effect to MGCM's voluntary agreement, the Fund's
advisory fee is 0.83%. If MGCM's voluntary agreement were not in effect, the
Fund Operating Expenses for institutional shares of the Fund would be 2.16%.
<PAGE>
Example:
Investors in institutional shares would pay the following expenses on a
$1,000(1) investment assuming (1) a 5% annual return and (2) redemption at the
end of each time period:
1 Year 3 Years
------ -------
Morgan Grenfell Microcap Fund $15 $47
- ----------
(1) The minimum initial investment required for institutional shares of
Microcap Fund is $250,000. Exchanges may be made in amounts as low as $50,000.
See "Purchase of Institutional Shares--Exchange Privilege" in the Prospectus.
* * * * * *
Selected unaudited data for an outstanding institutional share of Morgan
Grenfell Microcap Fund are presented below for the period commencing December
18, 1996 and ending April 30, 1997. This information should be read in
conjunction with the Fund's unaudited financial statements as of April 30, 1997
and the notes thereto, which appear in the Funds' Statement of Additional
Information. The Funds' Statement of Additional Information and annual and
semi-annual reports, which contain additional performance information, are
available free of charge by calling 1-800-550-6426.
FOR AN INSTITUTIONAL SHARE OUTSTANDING THROUGHOUT THE PERIOD COMMENCING
DECEMBER 18, 1996 AND ENDED APRIL 30, 1997
<TABLE>
<CAPTION>
NET DISTRIBUTIONS
NET ASSET NET REALIZED DISTRIBUTIONS FROM RATIO OF
VALUE INVESTMENT AND FROM NET REALIZED NET ASSET NET ASSETS EXPENSES
BEGINNING INCOME/ UNREALIZED INVESTMENT CAPITAL VALUE END TOTAL END OF TO AVERAGE
OF PERIOD (LOSS) GAINS (LOSSES) INCOME GAINS OF PERIOD RETURN PERIOD (000) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------
MICROCAP FUND:
- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997(1) $10.00 $(0.01) $(0.74) $ -- $ -- $ 9.25 (7.5)% $1,983 1.75%
RATIO OF
RATIO OF NET INVESTMENT
RATIO OF EXPENSES INCOME/(LOSS)
NET TO AVERAGE TO AVERAGE
INVESTMENT NET ASSETS NET ASSETS
INCOME/(LOSS) (EXCLUDING (EXCLUDING PORTFOLIO AVERAGE
TO AVERAGE EXPENSE EXPENSE TURNOVER COMMISSION
NET ASSETS LIMITATIONS) LIMITATIONS) RATE RATE*
- --------------------------------------------------------------------------------------
- ---------------
MICROCAP FUND:
- ---------------
<S> <C> <C> <C> <C> <C>
1997(1) (0.27)% 3.08% (1.60)% 26% $0.0077
<FN>
(1) MICROCAP FUND COMMENCED OPERATIONS ON 12/18/96. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
* AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES DURING THE PERIOD.
</FN>
</TABLE>
* * * * * *
Effective April 22, 1997, Robert Kern left MGCM to pursue other
opportunities. Accordingly, Mr. Kern is no longer a member of the team that
manages Morgan Grenfell Smaller Companies Fund and Morgan Grenfell Microcap
Fund. Effective June 16, 1997, John P. Callaghan joined MGCM and became a member
of the team that manages these Funds (joining Audrey M. T. Jones and David A.
Baratta). Prior to joining MGCM, Mr. Callaghan worked as a portfolio manager for
Odyssey Partners and Weiss Peck & Greer.
* * * * * *
As of June 5, 1997, the Adviser owned 65.55% and Deutsche Morgan Grenfell
C. J. Lawrence Inc. owned 29.70% of the outstanding shares of the Smaller
Companies Fund, Bankers Trust Company owned 45.50% of the outstanding shares of
the Municipal Bond Fund and Deutsche Morgan Grenfell C. J. Lawrence Inc. owned
54.29% of the outstanding shares of the Microcap Fund.
<PAGE>
The Prospectus, dated March 7, 1997, for institutional shares of Morgan
Grenfell Fixed Income Fund, Morgan Grenfell Municipal Bond Fund, Morgan Grenfell
Short-Term Fixed Income Fund, Morgan Grenfell Short-Term Municipal Bond Fund,
Morgan Grenfell Smaller Companies Fund, Morgan Grenfell Mircrocap Fund and
Morgan Grenfell Large Cap Growth Fund is incorporated by reference into this
Post-Effective Amendment No. 17 to the Registrant's Registration Statement on
Form N-1A from Post-Effective Amendment No. 16 to such Registration Statement.
<PAGE>
SUPPLEMENT DATED JUNE 23, 1997
TO STATEMENT OF ADDITIONAL INFORMATION
DATED JANUARY 16, 1997 FOR
INSTITUTIONAL SHARES OF THE FOLLOWING FUNDS:
Morgan Grenfell Fixed Income Fund
Morgan Grenfell Municipal Bond Fund
Morgan Grenfell Short-Term Fixed Income Fund
Morgan Grenfell Short-Term Municipal Bond Fund
Morgan Grenfell Smaller Companies Fund
Morgan Grenfell Microcap Fund
Morgan Grenfell Large Cap Growth Fund
The Trustees of Morgan Grenfell Investment Trust (the "Trust") have
approved the removal of the nonfundamental investment restrictions shown as:
(i) restrictions (b), (d), (f), (g), (h), (j) and (k) on pages 24 and 25
of the Statement of Additional Information for each Fund other than Morgan
Grenfell Fixed Income Fund and Morgan Grenfell Municipal Bond Fund; and
(ii) restriction (2) on page 26 of the Statement of Additional Information
for Morgan Grenfell Fixed Income Fund and Morgan Grenfell Municipal Bond Fund.
Accordingly, these restrictions no longer apply to the Funds.
* * * * * *
Morgan Grenfell Microcap Fund's unaudited financial statements for the
period commencing December 18, 1996 (commencement of the Fund's operations) and
ended April 30, 1997 are included in, and incorporated by reference into, the
Statement of Additional Information. For this period, the average annual total
return of institutional shares of the Fund was (7.5)%.
* * * * * *
As of June 1, 1997, the Trustees and officers of the Trust owned, as a
group, less than one percent of the outstanding shares of each Fund other than
Morgan Grenfell Short-Term Municipal Bond Fund and the Morgan Grenfell Smaller
Companies Fund. On such date, the Trustees and officers of the Trust owned, as a
group, 3.57% of the outstanding shares of Morgan Grenfell Short-Term Municipal
Bond Fund and 2.48% of the outstanding shares of the Morgan Grenfell Smaller
Companies Fund.
<PAGE>
As of June 5, 1997, the following shareholders owned the following
respective percentages of the outstanding shares of Morgan Grenfell Fixed Income
Fund, Morgan Grenfell Municipal Bond Fund, Morgan Grenfell Short-Term Fixed
Income Fund, Morgan Grenfell Short-Term Municipal Bond Fund, Morgan Grenfell
Smaller Companies Fund and Morgan Grenfell Microcap Fund:
Fixed Income Fund:
- ------------------
BATRUS & Co. 5.98%
c/o Bankers Trust Company
PO Box 9005
Church Street Station
New York, NY 10006
San Mateo County Employees 7.65%
Retirement Association
2317 Broadway St STE 115
Redwood City, CA 94063-1613
Municipal Bond Fund:
- --------------------
SEI Trust Company 7.72%
1 Freedom Valley Drive
Oaks, PA 19456
Batrus & Co. 45.50%
c/o Bankers Trust Co.
PO Box 9005
Church Street Station
New York, NY 10006
INFID & Co. 5.33%
c/o Bankers Trust Co.
PO Box 9005
Church Street Station
New York, NY 10006
Charles Schwab & Co. Inc. 9.93%
101 Montgomery Street
San Francisco, CA 94104-4122
Short-Term Municipal Bond Fund:
- -------------------------------
SEI Trust Company 5.85%
1 Freedom Valley Drive
Oaks, PA 19456
<PAGE>
Rocco A. Ortenzio 18.34%
c/o Select Capital Corp
4718 Old Gettysburg Rd
Mechanicsburg, PA 17055
Robert A. Ortenzio 6.11%
c/o Select Capital Corp
4718 Old Gettysburg Rd
Mechanicsburg, PA 17055
Charles Schwab & Co. Inc. 16.50%
101 Montgomery Street
San Francisco, CA 94104-4122
David W. Baldt 8.47%
677 Lippincott Ave
Moorestown, NJ 08057-1921
Short-Term Fixed Income Fund:
- -----------------------------
BATRUS & Co. 18.56%
c/o Bankers Trust
PO Box 9005
Church Street Station
New York, NY 10006
SEI Trust Company 5.74%
1 Freedom Valley Drive
Oaks, PA 19456
Saxon & Co. 17.07%
P.O. Box 7780-1888
Philadelphia, PA 19182
Patterson & Co. 7.04%
P.O. Box 7829
Philadelphia, PA 19101-7829
TBON & Co. 8.50%
401 Church St
PO Box 198986
Nashville TN 37219-8986
Smaller Companies Fund:
- -----------------------
Morgan Grenfell Capital Management, Inc. 65.55%
(Delaware Corporation)
885 Third Avenue
Suite 3200
New York, NY 10022-4834
<PAGE>
Deutsche Morgan Grenfell 29.70%
CJ Lawrence Inc.
1290 Avenue of the Americas
New York, NY 10104-0101
Microcap Fund:
- --------------
Deutsche Morgan Grenfell 54.29%
C. J. Lawrence Inc.
1290 Avenue of the Americas
New York, NY 10104-0101
Morgan Grenfell Capital Management Inc. 16.20%
885 Third Avenue
Suite 3200
New York, NY 10022-4834
Elizabeth Lugar Schater 11.60%
336 Parkway St
Charlottesville, VA 22902-4631
Miter & Co. 11.36%
Deutsche Bank
P.O. Box 2977
Milwaukee, WI 53201-2977
<PAGE>
The Statement of Additional Information, dated January 16, 1997, for
institutional shares of Morgan Grenfell Fixed Income Fund, Morgan Grenfell
Municipal Bond Fund, Morgan Grenfell Short-Term Fixed Income Fund, Morgan
Grenfell Short-Term Municipal Bond Fund, Morgan Grenfell Smaller Companies Fund
and Morgan Grenfell Microcap Fund is incorporated by reference into this
Post-Effective Amendment No. 17 to the Registrant's Registration Statement on
Form N-1A from Post-Effective Amendment No. 15 to such Registration Statement.
<PAGE>
The financial statements of the Trust for the periods ended on and prior to
October 31, 1996 are incorporated by reference into the preceding Statement of
Additional Information from the Trust's 1996 Annual Report to Shareholders for
the year ended October 31, 1996 (filed electronically on December 30, 1996; file
no. 812-10080; accession no. 0000935069-96-000172), and will be attached to each
copy of such Statement of Additional Information that is distributed.
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- APRIL 30, 1997 (UNAUDITED)
MICROCAP FUND
- --------------------------------------------------------------------------------
MARKET VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 76.1%
BUILDING & CONSTRUCTION SUPPLIES -- 2.4%
DR Horton 4,900 $ 48
--------
CONSUMER -- 15.9%
Conso Products* 1,500 20
Culp Incoporated 700 12
Damark International* 3,000 28
Delia's* 2,500 43
Fresh America* 2,600 36
Garden Ridge* 6,100 50
Genesco* 1,900 22
Richey Electronics * 6,200 63
Sonic* 1,300 17
Sport-Haley* 1,500 24
--------
315
--------
CREDIT SENSITIVE -- 6.3%
American Business Financial* 100 2
Ameritrade Holding, Class A* 200 3
ISB Financial 2,000 45
Pennfed Financial Services 1,400 33
R & G Financial, Class B* 1,800 42
--------
125
--------
ENTERTAINMENT -- 0.0%
Rio Hotel and Casino* 100 1
--------
HOTELS & LODGING -- 1.5%
ShoLodge* 2,600 29
--------
MEDICAL PRODUCTS & SERVICES -- 5.8%
Accumed International* 10,800 34
New West Eyeworks* 1,700 9
Sabratek* 1,800 39
Thermedics Detection* 1,800 18
Wesley Jessen* 1,100 15
--------
115
--------
PETROLEUM & FUEL PRODUCTS -- 7.6%
Basin Exploration* 4,800 32
Cairn Energy USA* 2,800 31
Lomak Petroleum 2,000 34
Numar 1,000 21
Wiser Oil 2,000 33
--------
151
--------
PROCESS INDUSTRIES -- 3.5%
NuCo2* 5,000 69
--------
SERVICE -- 11.8%
First Aviation* 2,400 20
Lodgenet Entertainment* 2,500 22
Mail Boxes Etc* 1,400 26
MDSI Mobile Data Solutions* 4,600 76
- --------------------------------------------------------------------------------
SHARES/FACE MARKET VALUE
DESCRIPTION AMOUNT (000) (000)
- --------------------------------------------------------------------------------
Saga Communications
Incorporated, Class A* 2,625 $ 46
Smithway Motor Express, Class A* 1,700 15
World Access* 3,000 29
--------
234
--------
<PAGE>
TECHNOLOGY -- 21.3%
AFC Cable Systems* 1,200 26
Aware* 5,500 58
BTG* 3,000 45
Ceradyne* 9,300 44
Channell Commercial* 1,200 13
Datum Inc* 1,300 30
ISG International Software* 2,500 26
Micrel* 700 31
PCD* 2,000 30
Specialty Teleconstructors* 5,900 58
Speedfam International* 1,500 36
V-One 5,100 26
--------
423
--------
Total Common Stocks
(Cost $1,655) 1,510
--------
COMMERCIAL PAPER -- 18.8%
Northern Trust
5.351%, 05/01/97 $ 372 372
--------
Total Commercial Paper
(Cost $372) 372
--------
Total Investments -- 94.9%
(Cost $2,027) 1,882
--------
OTHER ASSETS AND LIABILITIES -- 5.1%
Investment securities sold 106
Administration fee payable (1)
Receivable due from advisor 1
Other assets and liabilities (5)
--------
Other Assets and Liabilities, Net 101
--------
NET ASSETS:
Capital Shares -- InstitutionalShares
(unlimited authorization --
$.001 par value) based on 214,300
outstanding shares of beneficial interest 2,194
Undistributed net investment loss (2)
Accumulated net realized loss on investments (65)
Net unrealized depreciation on investments (144)
---------
Total Net Assets -- 100.0% $ 1,983
=========
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Shares $ 9.25
=========
* NON-INCOME PRODUCING SECURITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
1
<PAGE>
STATEMENT OF OPERATIONS (000)
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- FOR THE PERIOD ENDED APRIL 30,
1997 (UNAUDITED)
----------
MICROCAP
FUND (1)
----------
INVESTMENT INCOME:
Interest $ 9
Dividends 1
--------
Total Investment Income 10
--------
EXPENSES:
Investment advisory fees 10
Investment advisory fee reduction (10)
Administration fees 5
Custodian fees 1
Transfer agent fees 4
Professional fees --
Registration & filing fees --
Printing fees --
Trustee fees --
Pricing fees --
Other expenses 2
--------
Total expenses 12
Less: Reimbursement from Advisor --
--------
Total Net Expenses 12
--------
NET INVESTMENT LOSS (2)
--------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized loss on investments:
Security transactions (65)
Option transactions --
Net change in unrealized depreciation on investments (144)
--------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (211)
========
(1) MICROCAP FUND COMMENCED OPERATIONS ON 12/18/96.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- FOR THE PERIOD ENDED APRIL 30,
1997 (UNAUDITED)
-----------
MICROCAP
FUND (2)
-----------
1997
----
OPERATIONS:
Net investment loss $ (2)
Net realized loss from security transactions (65)
Net change in unrealized depreciation on investments (144)
----------
Net decrease in net assets from operations (211)
----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income --
Net realized gains --
----------
Total Distributions --
----------
CAPITAL SHARE TRANSACTIONS (1):
Proceeds from shares issued 2,194
Shares issued in lieu of cash distributions --
Cost of shares repurchased --
----------
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS 2,194
----------
Net increase (decrease) in net assets 1,983
----------
NET ASSETS:
Beginning of period --
----------
End of period $ 1,983
==========
(1) CAPITAL SHARE TRANSACTIONS:
Shares issued 214
Shares issued in lieu of cash distributions --
Shares repurchased --
----------
Net increase in capital shares 214
==========
(2) MICROCAP FUND COMMENCED OPERATIONS ON 12/18/96.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
3
<PAGE>
FINANCIAL HIGHLIGHTS
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- FOR THE PERIOD ENDED APRIL 30,
1997 (UNAUDITED)
FOR AN INSTITUTIONAL SHARE OUTSTANDING THROUGHOUT THE PERIOD COMMENCING
DECEMBER 18, 1996 AND ENDED APRIL 30, 1997
<TABLE>
<CAPTION>
NET DISTRIBUTIONS
NET ASSET NET REALIZED DISTRIBUTIONS FROM RATIO OF
VALUE INVESTMENT AND FROM NET REALIZED NET ASSET NET ASSETS EXPENSES
BEGINNING INCOME/ UNREALIZED INVESTMENT CAPITAL VALUE END TOTAL END OF TO AVERAGE
OF PERIOD (LOSS) GAINS (LOSSES) INCOME GAINS OF PERIOD RETURN PERIOD (000) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------
MICROCAP FUND:
- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997(1) $10.00 $(0.01) $(0.74) $ -- $ -- $ 9.25 (7.5)% $1,983 1.75%
RATIO OF
RATIO OF NET INVESTMENT
RATIO OF EXPENSES INCOME/(LOSS)
NET TO AVERAGE TO AVERAGE
INVESTMENT NET ASSETS NET ASSETS
INCOME/(LOSS) (EXCLUDING (EXCLUDING PORTFOLIO AVERAGE
TO AVERAGE EXPENSE EXPENSE TURNOVER COMMISSION
NET ASSETS LIMITATIONS) LIMITATIONS) RATE RATE*
- --------------------------------------------------------------------------------------
- ---------------
MICROCAP FUND:
- ---------------
<S> <C> <C> <C> <C> <C>
1997(1) (0.27)% 3.08% (1.60)% 26% $0.0077
<FN>
(1) MICROCAP FUND COMMENCED OPERATIONS ON 12/18/96. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
* AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES DURING THE PERIOD.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- APRIL 30, 1997 (UNAUDITED)
1. ORGANIZATION
Morgan Grenfell Investment Trust (the "Trust") was organized as a Delaware
business trust on September 13, 1993. The Trust is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company consisting of eighteen investment portfolios: Morgan Grenfell Municipal
Bond Fund, Morgan Grenfell Fixed Income Fund, Morgan Grenfell Short-Term
Municipal Bond Fund, Morgan Grenfell Short-Term Fixed Income Fund, Morgan
Grenfell Large Cap Growth Fund, Morgan Grenfell Smaller Companies Fund and
Morgan Grenfell Microcap Fund (collectively the "Domestic Funds"); Morgan
Grenfell International Equity Fund, Morgan Grenfell European Equity Fund, Morgan
Grenfell Global Equity Fund, Morgan Grenfell Pacific Basin Equity Fund, Morgan
Grenfell International Small Cap Equity Fund, Morgan Grenfell European Small Cap
Equity Fund, Morgan Grenfell Japanese Small Cap Equity Fund, Morgan Grenfell
Emerging Markets Equity Fund, Morgan Grenfell Global Fixed Income Fund, Morgan
Grenfell International Fixed Income Fund and Morgan Grenfell Emerging Markets
Debt Fund (collectively the "International Funds"). The Domestic Funds and
International Funds are hereafter referred to collectively as the "Funds". At
April 30, 1997, the Large Cap Growth Fund, Global Equity Fund, Pacific Basin
Equity Fund and Japanese Small Cap Equity Fund had not yet commenced operations.
The Funds' prospectuses provide a description of each Fund's investment
objectives, policies and strategies. These financial statements relate only to
the Microcap Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires Trust management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies followed by the Funds.
SECURITY VALUATION--Securities listed on a securities exchange for which
market quotations are readily available are valued at the last quoted sales
price on the principal exchange on which they are traded on the valuation date
or, if there is no such reported sale on the valuation date, at the most recent
quoted bid price. Unlisted securities for which market quotations are readily
availableare valued at the most recent quoted bid price. Certain debt and fixed
income investments owned by the Fundsare valued at prices supplied by
independent pricing agents selected by Morgan Grenfell Capital Management, Inc.
and Morgan Grenfell Investment Services Limited (the "Advisors"), which prices
reflect broker-dealer supplied valuations. Short-term investments are valued at
amortized cost which approximates market value. Other securities for which
market value is not readily available or securities whose market value does not,
in the opinion of the applicable Advisor, reflect fair value are valued at fair
value using methods determined in good faith by the valuation committee of the
Board of Trustees.
INCOME TAXES--It is the intention of each Fund to continue to qualify as a
regulated investment company and to distribute all of its taxable income.
Accordingly, no provision for Federal income taxes is considered necessary.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- APRIL 30, 1997 (UNAUDITED)
The International Funds may be subject to taxes imposed by countries in
which they invest with respect to their investments in issuers existing or
operating in such countries. Such taxes are generally based on either income
earned or repatriated. The International Funds accrue such taxes when the
related income is earned.
NET ASSET VALUE PER SHARE--The net asset value per share is calculated on a
daily basis by dividing the assets of each Fund, less its liabilities, by the
number of outstanding shares of the Fund.
REPURCHASE AGREEMENTS--Securities pledged as collateral for repurchase
agreements are held by the custodian banks until maturity of the repurchase
agreements. Provisions of the repurchase agreements and procedures adopted by
the Trust require that the market value of the collateral, including accrued
interest thereon, is sufficient in the event of default by the counterparty.
The Funds may also invest in tri-party repurchase agreements. Securities
held as collateral for tri-party repurchase agreements are maintained in a
segregated account by the broker's custodian bank until maturity of the
repurchase agreement. Provisions of the agreements require that the market value
of the collateral, including accrued interest thereon, is sufficient in the
event of default.
If the counterparty defaults and the value of the collateral declines or if
the counterparty enters an insolvency proceeding, realization of the collateral
by the Funds may be delayed or limited.
FOREIGN CURRENCY TRANSLATION--The books and records of the International
Funds are maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars on the following basis: (I) market value of investment
securities, other assets and liabilities at the current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at the
relevant rates of exchange prevailing on the respective dates of such
transactions.
The International Funds do not isolate that portion of gains and losses on
investments in securities which is due to changes in the foreign exchange rates
from that which is due to changes in market prices of such securities. The
International Funds do isolate the effect of fluctuations in foreign currency
rates when determining the gain or loss upon sale or maturity of foreign
currency denominated debt obligations pursuant to the Federal income tax
regulations. Such amounts are categorized as foreign currency gain or loss for
both financial reporting and income tax reporting purposes.
The International Funds report gains and losses on foreign currency related
transactions as realized and unrealized gains and losses for financial reporting
purposes, whereas such gains and losses, to the extent realized, are treated as
ordinary income or loss for Federal income tax purposes.
FORWARD FOREIGN CURRENCY CONTRACTS--The International Funds enter into
forward foreign currency contracts as hedges against portfolio positions as well
as for non-hedging purposes. The aggregate principal amounts of the contracts
are not recorded as the Funds do not intend to hold the contracts to maturity.
All commitments are "marked-to-market" daily at the applicable foreign exchange
rate and any resulting unrealized gains or losses are recorded currently. The
Funds realize gains or losses at the time forward contracts are extinguished,
except that gains or losses on certain open contracts are required to be
recognized for U.S. Federal income tax purposes at the close of the Fund's
taxable year and are generally treated as ordinary income for such purposes.
FOREIGN CURRENCY OPTIONS--The premium paid by a Fund for the purchase of an
option is included in the Fund's Statement of Net Assets as an investment and
subsequently marked to market to reflect the current market value of the option.
For an option held by a Fund on the stipulated expiration date, the Fund
realizes a loss. If the Fund enters into a closing sale transaction, it realizes
a gain or loss, depending on whether the proceeds from the sale are greater or
less than the cost of the purchased option. If the Fund exercises a purchased
put option, it realizes a gain or loss from the sale of the underlying
investment and proceeds from such sale will be decreased by the premium
originally paid. If the Fund exercises a purchased call option, the cost of the
underlying investment which the Fund purchases upon exercise will be increased
by the premium originally paid. Certain foreign currency options may be required
to be marked-to-market for Federal income tax purposes at the close of a Fund's
taxable year, giving rise to a gain or loss that may, depending upon whether
certain elections are made, be capital or ordinary in character.
6
<PAGE>
DISTRIBUTIONS--Distributions from net investment income and net realized
capital gains are determined in accordance with U.S. Federal income tax
regulations, which may differ from those amounts determined under generally
accepted accounting principles. These book/tax differences are either temporary
or permanent in nature. To the extent these differences are permanent, they are
charged or credited to paid in capital in the period that the difference arises.
EXPENSES--Expenses that are directly related to a Fund are charged directly
to that Fund. Other operating expenses of the Trust are prorated to the Funds on
the basis of relative net assets. Morgan Grenfell Capital Management, Inc.
absorbed all expenses of organizing the Trust.
OTHER--Security transactions are accounted for on the date the security is
purchased or sold (trade date). Costs used in determining net realized capital
gains and losses on the sale of investment securities are those of the specific
securities sold adjusted for the accretion and amortization of original issue
discounts and purchase premiums during the respective holding period. Original
issue discounts and purchase premiums on securities held by the Funds are
accreted and amortized ratably to maturity using the effective interest method.
Dividend income is recognized on the ex-dividend date and interest income is
recognized using the accrual method.
3. ADMINISTRATION, INVESTMENT ADVISORY, AND DISTRIBUTION AGREEMENTS The
Trust has entered into an administration agreement with SEI Financial Management
Corporation (the "Administrator"), pursuant to which the Administrator receives
an annual fee based on the aggregate average daily net assets of all the Funds
as follows: 0.12% up to $1 billion; 0.08% from $1 billion to $1.5 billion; 0.06%
from $1.5 billion to $2.5 billion; and 0.04% in excess of $2.5 billion. Each
Fund pays the Administrator a minimum annual fee of $60,000 (after a one-year
phase in period).
The Administrator generally assists in all matters relating to the
administration of the Funds, including the coordination and monitoring of any
third parties furnishing services to the Funds, preparation and maintenance of
financial accounting records, and the provision of necessary office space,
equipment and personnel to perform administrative and clerical functions.
Under advisory agreements with the Trust, Morgan Grenfell Capital
Management, Inc. serves as the Advisor for the Domestic Funds and Morgan
Grenfell Investment Services Limited serves as the Advisor for the International
Funds (collectively referred to as "Advisors). For these services, the Advisors
are entitled to a monthly fee at an annual rate of each Fund's average daily net
assets as follows:
Municipal Bond Fund 0.40%
Fixed Income Fund 0.40%
Short-Term Municipal Bond Fund 0.40%
Short-Term Fixed Income Fund 0.40%
Smaller Companies Fund 1.00%
Microcap Fund 1.50%
International Equity Fund 0.70%
European Equity Fund 0.70%
International Small Cap Equity Fund 1.00%
European Small Cap Equity Fund 1.00%
Emerging Markets Equity Fund 1.00%
Global Fixed Income Fund 0.50%
International Fixed Income Fund 0.50%
Emerging Markets Debt Fund 1.00%*
*1.50% PRIOR TO MARCH 1, 1997.
The Advisors have voluntarily agreed to reduce their advisory fees and/or
reimburse each Fund to the extent necessary to limit the Fund's operating
expenses to a specified percentage of its average net assets as follows:
Municipal Bond Fund 0.55%
Fixed Income Fund 0.55%
Short-Term Municipal Bond Fund 0.55%
Short-Term Fixed Income Fund 0.55%
Smaller Companies Fund 1.25%
Microcap Fund 1.75%
International Equity Fund 0.90%
European Equity Fund 0.90%
International Small Cap Equity Fund 1.25%
European Small Cap Equity Fund 1.25%
Emerging Markets Equity Fund 1.25%
Global Fixed Income Fund 0.65%
International Fixed Income Fund 0.65%
Emerging Markets Debt Fund 1.25%*
*1.50% PRIOR TO MARCH 1, 1997.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded)
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- APRIL 30, 1997 (UNAUDITED)
Certain officers and/or Trustees of the Trust are affiliated with the
Administrator or Advisors.
SEI Financial Services Company (the "Distributor") serves as the distributor
of shares of the Funds pursuant to a distribution agreement with the Trust and
assists in the sale of shares of the Funds. The Advisors, and not the Trust, are
responsible for payment of any expenses or fees incurred in the marketing and
distribution of shares of the Trust.
During the period ended April 30, 1997, certain portfolios of the Trust
purchased securities from and sold securities to other portfolios of the Trust
or other accounts managed by the Advisor at market value.
4. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
other than short-term investments and U.S. Government securities, during the
period ended April 30, 1997, were as follows:
PURCHASES SALES
(000) (000)
--------- ------
Microcap Fund $2,091 $371
For Federal income tax purposes, the cost of securities owned at April 30,
1997 and the net realized gains or losses on securities sold for the period then
ended was not materially different from the amounts reported for financial
reporting purposes. The aggregate gross unrealized appreciation and depreciation
at April 30, 1997 for each Fund is as follows:
NET
UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION/
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
------------ ------------ -------------
Microcap Fund $77 $(221) $(144)
8
<PAGE>
SUPPLEMENT DATED JUNE 23, 1997
TO PROSPECTUS DATED MARCH 7, 1997
FOR SERVICE SHARES OF THE FOLLOWING FUNDS:
Morgan Grenfell Fixed Income Fund
Morgan Grenfell Municipal Bond Fund
Morgan Grenfell Short-Term Fixed Income Fund
Morgan Grenfell Short-Term Municipal Bond Fund
Morgan Grenfell Smaller Companies Fund
Morgan Grenfell Microcap Fund
Morgan Grenfell Large Cap Growth Fund
Morgan Grenfell Capital Management, Inc. ("MGCM") has agreed, effective as
of July 1, 1997, to change the limit on annual operating expenses for service
shares of Morgan Grenfell Microcap Fund from 2.00% to 1.74% of average daily net
assets attributable to such shares. Accordingly, beginning on July 1, 1997, the
following disclosure should be substituted for the operating expense information
that currently appears for the Fund in the expense table on page 3 of the
Prospectus and the example information that currently appears for the Fund on
page 4 of the Prospectus:
Annual Fund Operating Expenses Microcap
(as a percentage of average net assets) Fund*
--------
Advisory Fees ......................................................... 1.50%
Other Expenses** ...................................................... 0.91%
Reduction of Advisory Fee and
Expense Limitation by Adviser*** ...................................... (0.67)%
Net Fund Operating Expenses (after
advisory fee reduction and expense
limitation) ........................................................... 1.74%
- ----------
* Microcap Fund was not operational during the fiscal year ended October 31,
1996.
** The figure shown as other expenses includes service fees of 0.25% of
the Fund's average net assets attributable to service shares. For more
information on service fees and a description of the circumstances in which
service shares will be converted to institutional shares (another class of Fund
shares), see "Management of the Funds--Service Plans" in the Prospectus.
*** MGCM has agreed to reduce its advisory fee and to make arrangments to
limit certain other expenses to the extent necessary to limit Fund Operating
Expenses for service shares of Microcap Fund, on an annual basis, to 1.74% of
the Fund's assets attributable to such shares. The above table and the following
example reflect this voluntary agreement. In its sole discretion, MGCM may
terminate or modify
<PAGE>
this agreement at any time after October 31, 1997. The purpose of the agreement
is to enhance the Fund's total return during the period when, because of its
smaller size, fixed expenses have a more significant impact on total return.
After giving effect to MGCM's voluntary agreement, the Fund's advisory fee is
0.83%. If MGCM's voluntary agreement were not in effect, the Fund Operating
Expenses for service shares of the Fund would be 2.41%.
Example:
Investors in service shares would pay the following expenses on a $1,000
investment assuming (1) a 5% annual return and (2) redemption at the end of each
time period:
1 Year 3 Years
------ -------
Morgan Grenfell Microcap Fund $18 $55
* * * * * *
Selected unaudited data for an outstanding institutional share of Morgan
Grenfell Microcap Fund are presented below for the period commencing December
18, 1996 and ending April 30, 1997. This information should be read in
conjunction with the Fund's unaudited financial statements as of April 30, 1997
and the notes thereto, which appear in the Funds' Statement of Additional
Information. The Funds' Statement of Additional Information and annual and
semi-annual reports, which contain additional performance information, are
available free of charge by calling 1-800-550-6426.
FOR AN INSTITUTIONAL SHARE OUTSTANDING THROUGHOUT THE PERIOD COMMENCING
DECEMBER 18, 1996 AND ENDED APRIL 30, 1997
<TABLE>
<CAPTION>
NET DISTRIBUTIONS
NET ASSET NET REALIZED DISTRIBUTIONS FROM RATIO OF
VALUE INVESTMENT AND FROM NET REALIZED NET ASSET NET ASSETS EXPENSES
BEGINNING INCOME/ UNREALIZED INVESTMENT CAPITAL VALUE END TOTAL END OF TO AVERAGE
OF PERIOD (LOSS) GAINS (LOSSES) INCOME GAINS OF PERIOD RETURN PERIOD (000) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------
MICROCAP FUND:
- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997(1) $10.00 $(0.01) $(0.74) $ -- $ -- $ 9.25 (7.5)% $1,983 1.75%
RATIO OF
RATIO OF NET INVESTMENT
RATIO OF EXPENSES INCOME/(LOSS)
NET TO AVERAGE TO AVERAGE
INVESTMENT NET ASSETS NET ASSETS
INCOME/(LOSS) (EXCLUDING (EXCLUDING PORTFOLIO AVERAGE
TO AVERAGE EXPENSE EXPENSE TURNOVER COMMISSION
NET ASSETS LIMITATIONS) LIMITATIONS) RATE RATE*
- --------------------------------------------------------------------------------------
- ---------------
MICROCAP FUND:
- ---------------
<S> <C> <C> <C> <C> <C>
1997(1) (0.27)% 3.08% (1.60)% 26% $0.0077
<FN>
(1) MICROCAP FUND COMMENCED OPERATIONS ON 12/18/96. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
* AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES DURING THE PERIOD.
</FN>
</TABLE>
* * * * * *
Effective April 22, 1997, Robert Kern left MGCM to pursue other
opportunities. Accordingly, Mr. Kern is no longer a member of the team that
manages Morgan Grenfell Smaller Companies Fund and Morgan Grenfell Microcap
Fund. Effective June 16, 1997, John P. Callaghan joined MGCM and became a member
of the team that manages these Funds (joining Audrey M. T. Jones and David A.
Baratta). Prior to joining MGCM, Mr. Callaghan worked as a portfolio manager for
Odyssey Partners and Weiss Peck & Greer.
* * * * * *
As of June 5, 1997, the Adviser owned 65.55% and Deutsche Morgan Grenfell
C. J. Lawrence Inc. owned 29.70% of the outstanding shares of the Smaller
Companies Fund, Bankers Trust Company owned 45.50% of the outstanding shares of
the Municipal Bond Fund and Deutsche Morgan Grenfell C. J. Lawrence Inc. owned
54.29% of the outstanding shares of the Microcap Fund.
<PAGE>
The Prospectus, dated March 7, 1997, for service shares of Morgan Grenfell
Fixed Income Fund, Morgan Grenfell Municipal Bond Fund, Morgan Grenfell
Short-Term Fixed Income Fund, Morgan Grenfell Short-Term Municipal Bond Fund,
Morgan Grenfell Smaller Companies Fund, Morgan Grenfell Microcap Fund and Morgan
Grenfell Large Cap Growth Fund is incorporated by reference into this
Post-Effective Amendment No. 17 to the Registrant's Registration Statement on
Form N-1A from Post-Effective Amendment No. 16 to such Registration Statement.
<PAGE>
SUPPLEMENT DATED JUNE 23, 1997
TO STATEMENT OF ADDITIONAL INFORMATION
DATED MARCH 7, 1997 FOR
SERVICE SHARES OF THE FOLLOWING FUNDS:
Morgan Grenfell Fixed Income Fund
Morgan Grenfell Municipal Bond Fund
Morgan Grenfell Short-Term Fixed Income Fund
Morgan Grenfell Short-Term Municipal Bond Fund
Morgan Grenfell Smaller Companies Fund
Morgan Grenfell Microcap Fund
Morgan Grenfell Large Cap Growth Fund
The Trustees of Morgan Grenfell Investment Trust (the "Trust") have
approved the removal of the nonfundamental investment restrictions shown as:
(i) restrictions (b), (d), (f), (g), (h), (j) and (k) on pages 24 and 25
of the Statement of Additional Information for each Fund other than Morgan
Grenfell Fixed Income Fund and Morgan Grenfell Municipal Bond Fund; and
(ii) restriction (2) on page 26 of the Statement of Additional Information
for Morgan Grenfell Fixed Income Fund and Morgan Grenfell Municipal Bond Fund.
Accordingly, these restrictions no longer apply to the Funds.
* * * * * *
Morgan Grenfell Microcap Fund's unaudited financial statements for the
period commencing December 18, 1996 (commencement of the Fund's operations) and
ended April 30, 1997 are included in, and incorporated by reference into, the
Statement of Additional Information. For this period, the average annual total
return of institutional shares of the Fund was (7.5)%.
* * * * * *
As of June 1, 1997, the Trustees and officers of the Trust owned, as a
group, less than one percent of the outstanding shares of each Fund other than
Morgan Grenfell Short-Term Municipal Bond Fund and the Morgan Grenfell Smaller
Companies Fund. On such date, the Trustees and officers of the Trust owned, as a
group, 3.57% of the outstanding shares of Morgan Grenfell Short-Term Municipal
Bond Fund and 2.48% of the outstanding shares of the Morgan Grenfell Smaller
Companies Fund.
<PAGE>
As of June 5, 1997, the following shareholders owned the following
respective percentages of the outstanding shares of Morgan Grenfell Fixed Income
Fund, Morgan Grenfell Municipal Bond Fund, Morgan Grenfell Short-Term Fixed
Income Fund, Morgan Grenfell Short-Term Municipal Bond Fund, Morgan Grenfell
Smaller Companies Fund and Morgan Grenfell Microcap Fund:
Fixed Income Fund:
- ------------------
BATRUS & Co. 5.98%
c/o Bankers Trust Company
PO Box 9005
Church Street Station
New York, NY 10006
San Mateo County Employees 7.65%
Retirement Association
2317 Broadway St STE 115
Redwood City, CA 94063-1613
Municipal Bond Fund:
- --------------------
SEI Trust Company 7.72%
1 Freedom Valley Drive
Oaks, PA 19456
Batrus & Co. 45.50%
c/o Bankers Trust Co.
PO Box 9005
Church Street Station
New York, NY 10006
INFID & Co. 5.33%
c/o Bankers Trust Co.
PO Box 9005
Church Street Station
New York, NY 10006
Charles Schwab & Co. Inc. 9.93%
101 Montgomery Street
San Francisco, CA 94104-4122
Short-Term Municipal Bond Fund:
- -------------------------------
SEI Trust Company 5.85%
1 Freedom Valley Drive
Oaks, PA 19456
<PAGE>
Rocco A. Ortenzio 18.34%
c/o Select Capital Corp
4718 Old Gettysburg Rd
Mechanicsburg, PA 17055
Robert A. Ortenzio 6.11%
c/o Select Capital Corp
4718 Old Gettysburg Rd
Mechanicsburg, PA 17055
Charles Schwab & Co. Inc. 16.50%
101 Montgomery Street
San Francisco, CA 94104-4122
David W. Baldt 8.47%
677 Lippincott Ave
Moorestown, NJ 08057-1921
Short-Term Fixed Income Fund:
- -----------------------------
BATRUS & Co. 18.56%
c/o Bankers Trust
PO Box 9005
Church Street Station
New York, NY 10006
SEI Trust Company 5.74%
1 Freedom Valley Drive
Oaks, PA 19456
Saxon & Co. 17.07%
P.O. Box 7780-1888
Philadelphia, PA 19182
Patterson & Co. 7.04%
P.O. Box 7829
Philadelphia, PA 19101-7829
TBON & Co. 8.50%
401 Church St
PO Box 198986
Nashville TN 37219-8986
Smaller Companies Fund:
- -----------------------
Morgan Grenfell Capital Management, Inc. 65.55%
(Delaware Corporation)
885 Third Avenue
Suite 3200
New York, NY 10022-4834
<PAGE>
Deutsche Morgan Grenfell 29.70%
CJ Lawrence Inc.
1290 Avenue of the Americas
New York, NY 10104-0101
Microcap Fund:
- --------------
Deutsche Morgan Grenfell 54.29%
C. J. Lawrence Inc.
1290 Avenue of the Americas
New York, NY 10104-0101
Morgan Grenfell Capital Management Inc. 16.20%
885 Third Avenue
Suite 3200
New York, NY 10022-4834
Elizabeth Lugar Schater 11.60%
336 Parkway St
Charlottesville, VA 22902-4631
Miter & Co. 11.36%
Deutsche Bank
P.O. Box 2977
Milwaukee, WI 53201-2977
<PAGE>
The Statement of Additional Information, dated March 7, 1997, for service
shares of Morgan Grenfell Fixed Income Fund, Morgan Grenfell Municipal Bond
Fund, Morgan Grenfell Short-Term Fixed Income Fund, Morgan Grenfell Short-Term
Municipal Bond Fund, Morgan Grenfell Smaller Companies Fund and Morgan Grenfell
Microcap Fund is incorporated by reference into this Post-Effective Amendment
No. 17 to the Registrant's Registration Statement on Form N-1A from
Post-Effective Amendment No. 16 to such Registration Statement.
<PAGE>
The financial statements of the Trust for the periods ended on and prior to
October 31, 1996 are incorporated by reference into the preceding Statement of
Additional Information from the Trust's 1996 Annual Report to Shareholders for
the year ended October 31, 1996 (filed electronically on December 30, 1996; file
no. 812-10080; accession no. 0000935069-96-000172), and will be attached to each
copy of such Statement of Additional Information that is distributed.
<PAGE>
STATEMENT OF NET ASSETS
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- APRIL 30, 1997 (UNAUDITED)
MICROCAP FUND
- --------------------------------------------------------------------------------
MARKET VALUE
DESCRIPTION SHARES (000)
- --------------------------------------------------------------------------------
COMMON STOCKS -- 76.1%
BUILDING & CONSTRUCTION SUPPLIES -- 2.4%
DR Horton 4,900 $ 48
--------
CONSUMER -- 15.9%
Conso Products* 1,500 20
Culp Incoporated 700 12
Damark International* 3,000 28
Delia's* 2,500 43
Fresh America* 2,600 36
Garden Ridge* 6,100 50
Genesco* 1,900 22
Richey Electronics * 6,200 63
Sonic* 1,300 17
Sport-Haley* 1,500 24
--------
315
--------
CREDIT SENSITIVE -- 6.3%
American Business Financial* 100 2
Ameritrade Holding, Class A* 200 3
ISB Financial 2,000 45
Pennfed Financial Services 1,400 33
R & G Financial, Class B* 1,800 42
--------
125
--------
ENTERTAINMENT -- 0.0%
Rio Hotel and Casino* 100 1
--------
HOTELS & LODGING -- 1.5%
ShoLodge* 2,600 29
--------
MEDICAL PRODUCTS & SERVICES -- 5.8%
Accumed International* 10,800 34
New West Eyeworks* 1,700 9
Sabratek* 1,800 39
Thermedics Detection* 1,800 18
Wesley Jessen* 1,100 15
--------
115
--------
PETROLEUM & FUEL PRODUCTS -- 7.6%
Basin Exploration* 4,800 32
Cairn Energy USA* 2,800 31
Lomak Petroleum 2,000 34
Numar 1,000 21
Wiser Oil 2,000 33
--------
151
--------
PROCESS INDUSTRIES -- 3.5%
NuCo2* 5,000 69
--------
SERVICE -- 11.8%
First Aviation* 2,400 20
Lodgenet Entertainment* 2,500 22
Mail Boxes Etc* 1,400 26
MDSI Mobile Data Solutions* 4,600 76
- --------------------------------------------------------------------------------
SHARES/FACE MARKET VALUE
DESCRIPTION AMOUNT (000) (000)
- --------------------------------------------------------------------------------
Saga Communications
Incorporated, Class A* 2,625 $ 46
Smithway Motor Express, Class A* 1,700 15
World Access* 3,000 29
--------
234
--------
<PAGE>
TECHNOLOGY -- 21.3%
AFC Cable Systems* 1,200 26
Aware* 5,500 58
BTG* 3,000 45
Ceradyne* 9,300 44
Channell Commercial* 1,200 13
Datum Inc* 1,300 30
ISG International Software* 2,500 26
Micrel* 700 31
PCD* 2,000 30
Specialty Teleconstructors* 5,900 58
Speedfam International* 1,500 36
V-One 5,100 26
--------
423
--------
Total Common Stocks
(Cost $1,655) 1,510
--------
COMMERCIAL PAPER -- 18.8%
Northern Trust
5.351%, 05/01/97 $ 372 372
--------
Total Commercial Paper
(Cost $372) 372
--------
Total Investments -- 94.9%
(Cost $2,027) 1,882
--------
OTHER ASSETS AND LIABILITIES -- 5.1%
Investment securities sold 106
Administration fee payable (1)
Receivable due from advisor 1
Other assets and liabilities (5)
--------
Other Assets and Liabilities, Net 101
--------
NET ASSETS:
Capital Shares -- InstitutionalShares
(unlimited authorization --
$.001 par value) based on 214,300
outstanding shares of beneficial interest 2,194
Undistributed net investment loss (2)
Accumulated net realized loss on investments (65)
Net unrealized depreciation on investments (144)
---------
Total Net Assets -- 100.0% $ 1,983
=========
Net Asset Value, Offering and Redemption
Price Per Share -- Institutional Shares $ 9.25
=========
* NON-INCOME PRODUCING SECURITY
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
1
<PAGE>
STATEMENT OF OPERATIONS (000)
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- FOR THE PERIOD ENDED APRIL 30,
1997 (UNAUDITED)
----------
MICROCAP
FUND (1)
----------
INVESTMENT INCOME:
Interest $ 9
Dividends 1
--------
Total Investment Income 10
--------
EXPENSES:
Investment advisory fees 10
Investment advisory fee reduction (10)
Administration fees 5
Custodian fees 1
Transfer agent fees 4
Professional fees --
Registration & filing fees --
Printing fees --
Trustee fees --
Pricing fees --
Other expenses 2
--------
Total expenses 12
Less: Reimbursement from Advisor --
--------
Total Net Expenses 12
--------
NET INVESTMENT LOSS (2)
--------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS:
Net realized loss on investments:
Security transactions (65)
Option transactions --
Net change in unrealized depreciation on investments (144)
--------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (211)
========
(1) MICROCAP FUND COMMENCED OPERATIONS ON 12/18/96.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
2
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS (000)
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- FOR THE PERIOD ENDED APRIL 30,
1997 (UNAUDITED)
-----------
MICROCAP
FUND (2)
-----------
1997
----
OPERATIONS:
Net investment loss $ (2)
Net realized loss from security transactions (65)
Net change in unrealized depreciation on investments (144)
----------
Net decrease in net assets from operations (211)
----------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income --
Net realized gains --
----------
Total Distributions --
----------
CAPITAL SHARE TRANSACTIONS (1):
Proceeds from shares issued 2,194
Shares issued in lieu of cash distributions --
Cost of shares repurchased --
----------
INCREASE (DECREASE) IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS 2,194
----------
Net increase (decrease) in net assets 1,983
----------
NET ASSETS:
Beginning of period --
----------
End of period $ 1,983
==========
(1) CAPITAL SHARE TRANSACTIONS:
Shares issued 214
Shares issued in lieu of cash distributions --
Shares repurchased --
----------
Net increase in capital shares 214
==========
(2) MICROCAP FUND COMMENCED OPERATIONS ON 12/18/96.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
3
<PAGE>
FINANCIAL HIGHLIGHTS
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- FOR THE PERIOD ENDED APRIL 30,
1997 (UNAUDITED)
FOR AN INSTITUTIONAL SHARE OUTSTANDING THROUGHOUT THE PERIOD COMMENCING
DECEMBER 18, 1996 AND ENDED APRIL 30, 1997
<TABLE>
<CAPTION>
NET DISTRIBUTIONS
NET ASSET NET REALIZED DISTRIBUTIONS FROM RATIO OF
VALUE INVESTMENT AND FROM NET REALIZED NET ASSET NET ASSETS EXPENSES
BEGINNING INCOME/ UNREALIZED INVESTMENT CAPITAL VALUE END TOTAL END OF TO AVERAGE
OF PERIOD (LOSS) GAINS (LOSSES) INCOME GAINS OF PERIOD RETURN PERIOD (000) NET ASSETS
- ------------------------------------------------------------------------------------------------------------------------------------
- --------------
MICROCAP FUND:
- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1997(1) $10.00 $(0.01) $(0.74) $ -- $ -- $ 9.25 (7.5)% $1,983 1.75%
RATIO OF
RATIO OF NET INVESTMENT
RATIO OF EXPENSES INCOME/(LOSS)
NET TO AVERAGE TO AVERAGE
INVESTMENT NET ASSETS NET ASSETS
INCOME/(LOSS) (EXCLUDING (EXCLUDING PORTFOLIO AVERAGE
TO AVERAGE EXPENSE EXPENSE TURNOVER COMMISSION
NET ASSETS LIMITATIONS) LIMITATIONS) RATE RATE*
- --------------------------------------------------------------------------------------
- ---------------
MICROCAP FUND:
- ---------------
<S> <C> <C> <C> <C> <C>
1997(1) (0.27)% 3.08% (1.60)% 26% $0.0077
<FN>
(1) MICROCAP FUND COMMENCED OPERATIONS ON 12/18/96. ALL RATIOS FOR THE PERIOD HAVE BEEN ANNUALIZED.
* AVERAGE COMMISSION RATE PAID PER SHARE FOR SECURITY PURCHASES AND SALES DURING THE PERIOD.
</FN>
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
4
<PAGE>
NOTES TO FINANCIAL STATEMENTS
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- APRIL 30, 1997 (UNAUDITED)
1. ORGANIZATION
Morgan Grenfell Investment Trust (the "Trust") was organized as a Delaware
business trust on September 13, 1993. The Trust is registered under the
Investment Company Act of 1940, as amended, as an open-end management investment
company consisting of eighteen investment portfolios: Morgan Grenfell Municipal
Bond Fund, Morgan Grenfell Fixed Income Fund, Morgan Grenfell Short-Term
Municipal Bond Fund, Morgan Grenfell Short-Term Fixed Income Fund, Morgan
Grenfell Large Cap Growth Fund, Morgan Grenfell Smaller Companies Fund and
Morgan Grenfell Microcap Fund (collectively the "Domestic Funds"); Morgan
Grenfell International Equity Fund, Morgan Grenfell European Equity Fund, Morgan
Grenfell Global Equity Fund, Morgan Grenfell Pacific Basin Equity Fund, Morgan
Grenfell International Small Cap Equity Fund, Morgan Grenfell European Small Cap
Equity Fund, Morgan Grenfell Japanese Small Cap Equity Fund, Morgan Grenfell
Emerging Markets Equity Fund, Morgan Grenfell Global Fixed Income Fund, Morgan
Grenfell International Fixed Income Fund and Morgan Grenfell Emerging Markets
Debt Fund (collectively the "International Funds"). The Domestic Funds and
International Funds are hereafter referred to collectively as the "Funds". At
April 30, 1997, the Large Cap Growth Fund, Global Equity Fund, Pacific Basin
Equity Fund and Japanese Small Cap Equity Fund had not yet commenced operations.
The Funds' prospectuses provide a description of each Fund's investment
objectives, policies and strategies. These financial statements relate only to
the Microcap Fund.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements in accordance with generally accepted
accounting principles requires Trust management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies followed by the Funds.
SECURITY VALUATION--Securities listed on a securities exchange for which
market quotations are readily available are valued at the last quoted sales
price on the principal exchange on which they are traded on the valuation date
or, if there is no such reported sale on the valuation date, at the most recent
quoted bid price. Unlisted securities for which market quotations are readily
availableare valued at the most recent quoted bid price. Certain debt and fixed
income investments owned by the Fundsare valued at prices supplied by
independent pricing agents selected by Morgan Grenfell Capital Management, Inc.
and Morgan Grenfell Investment Services Limited (the "Advisors"), which prices
reflect broker-dealer supplied valuations. Short-term investments are valued at
amortized cost which approximates market value. Other securities for which
market value is not readily available or securities whose market value does not,
in the opinion of the applicable Advisor, reflect fair value are valued at fair
value using methods determined in good faith by the valuation committee of the
Board of Trustees.
INCOME TAXES--It is the intention of each Fund to continue to qualify as a
regulated investment company and to distribute all of its taxable income.
Accordingly, no provision for Federal income taxes is considered necessary.
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Continued)
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- APRIL 30, 1997 (UNAUDITED)
The International Funds may be subject to taxes imposed by countries in
which they invest with respect to their investments in issuers existing or
operating in such countries. Such taxes are generally based on either income
earned or repatriated. The International Funds accrue such taxes when the
related income is earned.
NET ASSET VALUE PER SHARE--The net asset value per share is calculated on a
daily basis by dividing the assets of each Fund, less its liabilities, by the
number of outstanding shares of the Fund.
REPURCHASE AGREEMENTS--Securities pledged as collateral for repurchase
agreements are held by the custodian banks until maturity of the repurchase
agreements. Provisions of the repurchase agreements and procedures adopted by
the Trust require that the market value of the collateral, including accrued
interest thereon, is sufficient in the event of default by the counterparty.
The Funds may also invest in tri-party repurchase agreements. Securities
held as collateral for tri-party repurchase agreements are maintained in a
segregated account by the broker's custodian bank until maturity of the
repurchase agreement. Provisions of the agreements require that the market value
of the collateral, including accrued interest thereon, is sufficient in the
event of default.
If the counterparty defaults and the value of the collateral declines or if
the counterparty enters an insolvency proceeding, realization of the collateral
by the Funds may be delayed or limited.
FOREIGN CURRENCY TRANSLATION--The books and records of the International
Funds are maintained in U.S. dollars. Foreign currency amounts are translated
into U.S. dollars on the following basis: (I) market value of investment
securities, other assets and liabilities at the current rate of exchange; and
(II) purchases and sales of investment securities, income and expenses at the
relevant rates of exchange prevailing on the respective dates of such
transactions.
The International Funds do not isolate that portion of gains and losses on
investments in securities which is due to changes in the foreign exchange rates
from that which is due to changes in market prices of such securities. The
International Funds do isolate the effect of fluctuations in foreign currency
rates when determining the gain or loss upon sale or maturity of foreign
currency denominated debt obligations pursuant to the Federal income tax
regulations. Such amounts are categorized as foreign currency gain or loss for
both financial reporting and income tax reporting purposes.
The International Funds report gains and losses on foreign currency related
transactions as realized and unrealized gains and losses for financial reporting
purposes, whereas such gains and losses, to the extent realized, are treated as
ordinary income or loss for Federal income tax purposes.
FORWARD FOREIGN CURRENCY CONTRACTS--The International Funds enter into
forward foreign currency contracts as hedges against portfolio positions as well
as for non-hedging purposes. The aggregate principal amounts of the contracts
are not recorded as the Funds do not intend to hold the contracts to maturity.
All commitments are "marked-to-market" daily at the applicable foreign exchange
rate and any resulting unrealized gains or losses are recorded currently. The
Funds realize gains or losses at the time forward contracts are extinguished,
except that gains or losses on certain open contracts are required to be
recognized for U.S. Federal income tax purposes at the close of the Fund's
taxable year and are generally treated as ordinary income for such purposes.
FOREIGN CURRENCY OPTIONS--The premium paid by a Fund for the purchase of an
option is included in the Fund's Statement of Net Assets as an investment and
subsequently marked to market to reflect the current market value of the option.
For an option held by a Fund on the stipulated expiration date, the Fund
realizes a loss. If the Fund enters into a closing sale transaction, it realizes
a gain or loss, depending on whether the proceeds from the sale are greater or
less than the cost of the purchased option. If the Fund exercises a purchased
put option, it realizes a gain or loss from the sale of the underlying
investment and proceeds from such sale will be decreased by the premium
originally paid. If the Fund exercises a purchased call option, the cost of the
underlying investment which the Fund purchases upon exercise will be increased
by the premium originally paid. Certain foreign currency options may be required
to be marked-to-market for Federal income tax purposes at the close of a Fund's
taxable year, giving rise to a gain or loss that may, depending upon whether
certain elections are made, be capital or ordinary in character.
6
<PAGE>
DISTRIBUTIONS--Distributions from net investment income and net realized
capital gains are determined in accordance with U.S. Federal income tax
regulations, which may differ from those amounts determined under generally
accepted accounting principles. These book/tax differences are either temporary
or permanent in nature. To the extent these differences are permanent, they are
charged or credited to paid in capital in the period that the difference arises.
EXPENSES--Expenses that are directly related to a Fund are charged directly
to that Fund. Other operating expenses of the Trust are prorated to the Funds on
the basis of relative net assets. Morgan Grenfell Capital Management, Inc.
absorbed all expenses of organizing the Trust.
OTHER--Security transactions are accounted for on the date the security is
purchased or sold (trade date). Costs used in determining net realized capital
gains and losses on the sale of investment securities are those of the specific
securities sold adjusted for the accretion and amortization of original issue
discounts and purchase premiums during the respective holding period. Original
issue discounts and purchase premiums on securities held by the Funds are
accreted and amortized ratably to maturity using the effective interest method.
Dividend income is recognized on the ex-dividend date and interest income is
recognized using the accrual method.
3. ADMINISTRATION, INVESTMENT ADVISORY, AND DISTRIBUTION AGREEMENTS The
Trust has entered into an administration agreement with SEI Financial Management
Corporation (the "Administrator"), pursuant to which the Administrator receives
an annual fee based on the aggregate average daily net assets of all the Funds
as follows: 0.12% up to $1 billion; 0.08% from $1 billion to $1.5 billion; 0.06%
from $1.5 billion to $2.5 billion; and 0.04% in excess of $2.5 billion. Each
Fund pays the Administrator a minimum annual fee of $60,000 (after a one-year
phase in period).
The Administrator generally assists in all matters relating to the
administration of the Funds, including the coordination and monitoring of any
third parties furnishing services to the Funds, preparation and maintenance of
financial accounting records, and the provision of necessary office space,
equipment and personnel to perform administrative and clerical functions.
Under advisory agreements with the Trust, Morgan Grenfell Capital
Management, Inc. serves as the Advisor for the Domestic Funds and Morgan
Grenfell Investment Services Limited serves as the Advisor for the International
Funds (collectively referred to as "Advisors). For these services, the Advisors
are entitled to a monthly fee at an annual rate of each Fund's average daily net
assets as follows:
Municipal Bond Fund 0.40%
Fixed Income Fund 0.40%
Short-Term Municipal Bond Fund 0.40%
Short-Term Fixed Income Fund 0.40%
Smaller Companies Fund 1.00%
Microcap Fund 1.50%
International Equity Fund 0.70%
European Equity Fund 0.70%
International Small Cap Equity Fund 1.00%
European Small Cap Equity Fund 1.00%
Emerging Markets Equity Fund 1.00%
Global Fixed Income Fund 0.50%
International Fixed Income Fund 0.50%
Emerging Markets Debt Fund 1.00%*
*1.50% PRIOR TO MARCH 1, 1997.
The Advisors have voluntarily agreed to reduce their advisory fees and/or
reimburse each Fund to the extent necessary to limit the Fund's operating
expenses to a specified percentage of its average net assets as follows:
Municipal Bond Fund 0.55%
Fixed Income Fund 0.55%
Short-Term Municipal Bond Fund 0.55%
Short-Term Fixed Income Fund 0.55%
Smaller Companies Fund 1.25%
Microcap Fund 1.75%
International Equity Fund 0.90%
European Equity Fund 0.90%
International Small Cap Equity Fund 1.25%
European Small Cap Equity Fund 1.25%
Emerging Markets Equity Fund 1.25%
Global Fixed Income Fund 0.65%
International Fixed Income Fund 0.65%
Emerging Markets Debt Fund 1.25%*
*1.50% PRIOR TO MARCH 1, 1997.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS (Concluded)
================================================================================
MORGAN GRENFELL INVESTMENT TRUST -- APRIL 30, 1997 (UNAUDITED)
Certain officers and/or Trustees of the Trust are affiliated with the
Administrator or Advisors.
SEI Financial Services Company (the "Distributor") serves as the distributor
of shares of the Funds pursuant to a distribution agreement with the Trust and
assists in the sale of shares of the Funds. The Advisors, and not the Trust, are
responsible for payment of any expenses or fees incurred in the marketing and
distribution of shares of the Trust.
During the period ended April 30, 1997, certain portfolios of the Trust
purchased securities from and sold securities to other portfolios of the Trust
or other accounts managed by the Advisor at market value.
4. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
other than short-term investments and U.S. Government securities, during the
period ended April 30, 1997, were as follows:
PURCHASES SALES
(000) (000)
--------- ------
Microcap Fund $2,091 $371
For Federal income tax purposes, the cost of securities owned at April 30,
1997 and the net realized gains or losses on securities sold for the period then
ended was not materially different from the amounts reported for financial
reporting purposes. The aggregate gross unrealized appreciation and depreciation
at April 30, 1997 for each Fund is as follows:
NET
UNREALIZED
APPRECIATED DEPRECIATED APPRECIATION/
SECURITIES SECURITIES (DEPRECIATION)
(000) (000) (000)
------------ ------------ -------------
Microcap Fund $77 $(221) $(144)
8
<PAGE>
FORM N-1A
PART C. OTHER INFORMATION
-----------------
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
The financial highlights for institutional shares of the
Registrant are included in Part A of the Registration Statement
for periods ending on or prior to October 31, 1996 and, in the
case of Morgan Grenfell Microcap Fund, for the period commencing
December 18, 1996 and ended April 30, 1997. The financial
statements of the Registrant are included in, and, except for the
financial statements covering the six-month period ended April
30, 1997, incorporated by reference into, Part B of the
Registration Statement from the 1996 Annual Report to
Shareholders for the year ended October 31, 1996 (filed
electronically on December 30, 1996; file no. 812-10080;
accession no. 0000935069-96-000172).
(b) Exhibits:
Except as noted, the following exhibits are being filed herewith:
**1. Agreement and Declaration of Trust of Registrant dated
September 13, 1993, as amended.
**2. Amended By-Laws of Registrant.
**5(a). Management Contract dated January 3, 1994, as amended as
of April 25, 1994, April 1, 1995 and September 1, 1995,
between Morgan Grenfell Investment Services Limited and
Registrant, on behalf of Morgan Grenfell International
Equity Fund, Morgan Grenfell Global Equity Fund, Morgan
Grenfell European Equity Fund, Morgan Grenfell Pacific Basin
Equity Fund, Morgan Grenfell International Small Cap Equity
Fund, Morgan Grenfell Japanese Small Cap Equity Fund, Morgan
Grenfell European Small Cap Equity Fund, Morgan Grenfell
Emerging Markets Equity Fund, Morgan Grenfell Global Fixed
Income Fund, Morgan Grenfell International Fixed Income Fund
and Morgan Grenfell Emerging Markets Debt Fund.
C-1
<PAGE>
**5(b). Management Contract dated as of December 28, 1994 between
Morgan Grenfell Capital Management, Inc. and Registrant, on
behalf of Morgan Grenfell Fixed Income Fund and Morgan
Grenfell Municipal Bond Fund.
**5(c). Management Contract dated as of December 28, 1994 between
Morgan Grenfell Capital Management, Inc. and Registrant, on
behalf of Morgan Grenfell Large Cap Growth Fund, Morgan
Grenfell Smaller Companies Fund, Morgan Grenfell Short-Term
Fixed Income Fund and Morgan Grenfell Short-Term Municipal
Bond Fund.
***5(d). Management Contract between Morgan Grenfell Capital
Management, Inc. and Registrant, on behalf of Morgan
Grenfell Microcap Fund (previously filed with the SEC on
November 1, 1996 pursuant to Post-Effective Amendment No. 12
to Registrant's Registration Statement).
*6. Distribution Agreement dated as of December 30, 1993 between
SEI Financial Services Company and Registrant, on behalf of
all of its series.
**8(a). Custody Agreement dated as of December 29, 1993 between
The Northern Trust Company and Registrant, on behalf of
Morgan Grenfell International Equity Fund, Morgan Grenfell
Global Equity Fund, Morgan Grenfell European Equity Fund,
Morgan Grenfell Pacific Basin Equity Fund, Morgan Grenfell
International Small Cap Equity Fund, Morgan Grenfell
Japanese Small Cap Equity Fund, Morgan Grenfell European
Small Cap Equity Fund, Morgan Grenfell Emerging Markets
Equity Fund, Morgan Grenfell Global Fixed Income Fund,
Morgan Grenfell International Fixed Income Fund and Morgan
Grenfell Emerging Markets Fixed Income Fund, and form of
amendment effective as of December 28, 1994, causing Custody
Agreement to apply to Morgan Grenfell Short-Term Fixed
Income Fund, Morgan Grenfell Short-Term Municipal Bond Fund,
Morgan Grenfell Large Cap Growth Fund and Morgan Grenfell
Smaller Companies Fund.
**8(b). Custody Agreement dated as of December 28, 1994 between
CoreStates Bank, N.A. and
C-2
<PAGE>
Registrant, on behalf of Morgan Grenfell Fixed Income Fund
and Morgan Grenfell Municipal Bond Fund.
***9(a). Administration Agreement between SEI Financial
Management Corporation and Registrant, on behalf of Morgan
Grenfell International Equity Fund, Morgan Grenfell Global
Equity Fund, Morgan Grenfell European Equity Fund, Morgan
Grenfell Pacific Basin Equity Fund, Morgan Grenfell
International Small Cap Equity Fund, Morgan Grenfell
Japanese Small Cap Equity Fund, Morgan Grenfell European
Small Cap Equity Fund, Morgan Grenfell Emerging Markets
Equity Fund, Morgan Grenfell Global Fixed Income Fund,
Morgan Grenfell International Fixed Income Fund and Morgan
Grenfell Emerging Markets Debt Fund, Morgan Grenfell Large
Cap Growth Fund, Morgan Grenfell Smaller Companies Fund,
Morgan Grenfell Fixed Income Fund, Morgan Grenfell
Short-Term Fixed Income Fund, Morgan Grenfell Municipal Bond
Fund, Morgan Grenfell Short-Term Municipal Bond Fund and
Morgan Grenfell Microcap Fund (previously filed with the SEC
on November 1, 1996 pursuant to Post-Effective Amendment No.
12 to Registrant's Registration Statement).
***9(b). Transfer Agency Agreement dated as of December 30, 1993
between Supervised Service Company, Inc. and Registrant, on
behalf of Morgan Grenfell International Equity Fund, Morgan
Grenfell Global Equity Fund, Morgan Grenfell European Equity
Fund, Morgan Grenfell Pacific Basin Equity Fund, Morgan
Grenfell International Small Cap Equity Fund, Morgan
Grenfell Japanese Small Cap Equity Fund, Morgan Grenfell
European Small Cap Equity Fund, Morgan Grenfell Emerging
Markets Equity Fund, Morgan Grenfell Global Fixed Income
Fund, Morgan Grenfell International Fixed Income Fund and
Morgan Grenfell Emerging Markets Fixed Income Fund
(previously filed with the SEC on November 1, 1996 pursuant
to Post-Effective Amendment No. 12 to Registrant's
Registration Statement).
C-3
<PAGE>
***9(c). Transfer Agency Agreement dated as of December 28, 1994
between Supervised Service Company, Inc. and Registrant, on
behalf of Morgan Grenfell Large Cap Growth Fund, Morgan
Grenfell Smaller Companies Fund, Morgan Grenfell Fixed
Income Fund, Morgan Grenfell Short-Term Fixed Income Fund,
Morgan Grenfell Municipal Bond Fund, Morgan Grenfell
Short-Term Municipal Bond Fund and Morgan Grenfell Microcap
Fund (previously filed with the SEC on November 1, 1996
pursuant to Post-Effective Amendment No. 12 to Registrant's
Registration Statement).
10. Not Applicable.
11. Consent of Independent Accountants.
12. Not Applicable.
***13. Share Purchase Agreement dated as of December 29, 1993
between Registrant and SEI Financial Management Corporation
(previously filed with the SEC on February 11, 1997 pursuant
to Post-Effective Amendment No. 16 to Registrant's
Registration Statement).
***16. Schedule of Performance Computations (previously filed
with the SEC on February 11, 1997 pursuant to Post-Effective
Amendment No. 16 to Registrant's Registration Statement).
17. Financial Data Schedule.
***18. Form of Amended Rule 18f-3 Plan (previously filed with the
SEC on February 11, 1997 pursuant to Post-Effective
Amendment No. 16 to Registrant's Registration Statement).
**19(a). Powers of Attorney of Graham E. Jones, William N.
Searcy, Paul K. Freeman, Theresa M. Messina, Patrick W.
Disney, James E. Minnick, Hugh G. Lynch, Edward T. Tokar and
Jeffrey A. Cohen.
***19(b). Power of Attorney of John G. Alshefski (previously
filed with the SEC on November 1, 1996 pursuant to
Post-Effective Amendment No. 12 to Registrant's Registration
Statement)
C-4
<PAGE>
- ----------
* Previously filed with the SEC on June 11, 1996 and
incorporated by reference herein.
** Previously filed with the SEC on February 14, 1996 and
incorporated by reference herein.
*** Previously filed with the SEC on the dates indicated and
incorporated by reference herein.
Item 25. Persons Controlled By or Under
Common Control With Registrant
------------------------------
The Registrant does not directly or indirectly control any person. On
the effective date of this Registration Statement, 100% of the shares of the
following series of the Registrant will be owned by SEI Financial Management
Corporation, a Delaware corporation: Morgan Grenfell Global Equity Fund, Morgan
Grenfell Pacific Basin Equity Fund and Morgan Grenfell Japanese Small Cap Equity
Fund. SEI Financial Management Corporation is a wholly-owned subsidiary of SEI
Corporation, a Delaware corporation, which also controls the distributor of the
Registrant, SEI Financial Services Company, and other corporations engaged in
providing various financial and recordkeeping services, primarily to bank trust
departments, pension plan sponsors and investment managers.
Item 26. Number of Holders of Securities
-------------------------------
On June 2, 1997, the number of record holders of shares of each series
of the Registrant was as follows:
Number of
Fund Record Holders
- ---- --------------
Morgan Grenfell International Equity Fund 22
Morgan Grenfell Global Equity Fund 1
Morgan Grenfell European Equity Fund 6
Morgan Grenfell Pacific Basin Equity Fund 1
Morgan Grenfell International Small Cap Equity Fund 21
Morgan Grenfell Japanese Small Cap Equity Fund 1
Morgan Grenfell European Small Cap Equity Fund 13
Morgan Grenfell Emerging Markets Equity Fund 39
Morgan Grenfell Global Fixed Income Fund 85
Morgan Grenfell International Fixed Income Fund 23
Morgan Grenfell Emerging Markets Debt Fund 59
Morgan Grenfell Fixed Income Fund 264
Morgan Grenfell Municipal Bond Fund 136
Morgan Grenfell Short-Term Fixed Income Fund 54
Morgan Grenfell Short-Term Municipal Bond Fund 58
C-5
<PAGE>
Morgan Grenfell Smaller Companies Fund 23
Morgan Grenfell Microcap Fund 23
Morgan Grenfell Large Cap Growth Fund 0
Item 27. Indemnification
---------------
Article III, Section 7 and Article VII, Section 2 of the Registrant's
Agreement and Declaration of Trust and Article VI of the Registrant's By-Laws
provide for indemnification of the Registrant's trustees and officers under
certain circumstances.
Item 28. Business and Other Connections of Investment Advisers
-----------------------------------------------------
All of the information required by this item is set forth in the Form
ADV, as amended, of Morgan Grenfell Investment Services Limited (File No.
801-12880) and in the Form ADV, as amended, of Morgan Grenfell Capital
Management, Inc. (File No. 801-27291). The following sections of each such Form
ADV are incorporated herein by reference:
(a) Items 1 and 2 of Part II
(b) Section 6, Business Background, of each Schedule D.
Item 29. Principal Underwriter
---------------------
(a) The Registrant's distributor is SEI Financial Services Company
("SFS"), which also acts as distributor for SEI Daily Income
Trust, SEI Liquid Asset Trust, SEI Tax Exempt Trust, SEI Index
Funds, SEI Institutional Managed Trust, SEI International Trust,
The Advisors' Inner Circle Fund, The Pillar Funds, CUFUND, STI
Classic Funds, CoreFunds, Inc., First American Funds, Inc., First
American Investment Funds, Inc., The Arbor Fund, Boston 1784
Funds(R), The PBHG Funds, Inc., Marquis Funds(R), The Achievement
Funds Trust, Bishop Street Funds, CrestFunds, Inc., STI Classic
Variable Trust, ARK Funds, Monitor Funds, FMB Funds, Inc., SEI
Asset Allocation Trust, TIP Funds, SEI Institutional Investments
Trust, First American Strategy Funds, Inc., High Mark Funds and
Armada Funds pursuant to distribution agreements dated July 15,
1982, November 29, 1982, December 3, 1982, July 10, 1985, January
22, 1987, August 30, 1988, November 14, 1991, February 28, 1992,
May 1, 1992, May 29, 1992, October 30, 1992, November 1, 1992,
November 1, 1992, January 28, 1993, June 1,
C-6
<PAGE>
1993, July 16, 1993, August 17, 1993, December 27, 1994, January
27, 1995, March 1, 1995, August 18, 1995, November 1, 1995,
January 11, 1996, March 1, 1996, April 1, 1996, April 28, 1996,
June 14, 1996, October 1, 1996, February 15, 1997 and March 8,
1997, respectively.
(b) The following table lists, for each director and officer of SFS,
the information indicated.
Name and Positions and
Principal Business Position and Offices Office with
Address* with Underwriter Registrant
- ------------------ -------------------- -------------
Alfred P. West, Jr. Director, Chairman and None
Chief Executive Officer
Henry H. Greer Director, President and None
Chief Operating Officer
Carmen V. Romeo Director, Executive Vice None
President, President -
Investment Advisory Group
Gilbert L. Beebower Executive Vice President None
Richard B. Lieb Executive Vice President, None
President - Investment
Services Division
Leo J. Dolan, Jr. Senior Vice President None
Carl A. Guarino Senior Vice President None
David G. Lee Senior Vice President None
A. Keith McDowell Senior Vice President None
Dennis J. McGonigle Executive Vice President None
Hartland J. McKeown Senior Vice President None
Kevin P. Robins Senior Vice President, None
General Counsel and
Secretary
Robert Wagner Senior Vice President None
Patrick K. Walsh Senior Vice President None
Robert Crudup Vice President and
Managing Director None
Barbara Doyne Vice President None
Vic Galef Vice President and None
Managing Director
Kim Kirk Vice President and None
Managing Director
John Krzeminski Vice President and None
C-7
<PAGE>
Managing Director
Carolyn McLaurin Vice President and None
Managing Director
Barbara Moore Senior Vice President None
Donald Pepin Vice President and None
Managing Director
Mark Samuels Vice President and None
Managing Director
Wayne M. Withrow Vice President and None
Managing Director
Robert Aller Vice President None
W. Kelso Morrill Vice President None
Joanne Nelson Vice President None
Gordon W. Carpenter Vice President None
Barbara A. Nugent Vice President and None
Assistant Secretary
Todd Cipperman Vice President and None
Assistant Secretary
Jeff Drennen Vice President None
Kathy Heilig Vice President and None
Treasurer
Larry Hutchison Senior Vice President None
Michael Kantor Vice President None
Samuel King Vice President None
Donald H. Korytowski Vice President None
Jack May Senior Vice President None
Sandra K. Orlow Vice President and None
Assistant Secretary
Kim Rainey Vice President None
Steve Smith Vice President None
Daniel Spaventa Vice President None
Kathryn L. Stanton Vice President and None
Assistant Secretary
James Dougherty Director of Brokerage Services None
Marc H. Cahn Vice President and None
Assistant Secretary
- ----------
* The principal business address of each of the listed persons is SEI
Financial Services Company, 680 East Swedesford Road, Wayne, Pennsylvania
19087-1658.
(c) Not applicable.
C-8
<PAGE>
Item 30. Location of Accounts and Records
--------------------------------
The Agreement and Declaration of Trust, By-Laws and minute books of
the Registrant are in the physical possession of Morgan Grenfell Capital
Management, Inc., 885 Third Avenue, New York, New York 10022. All other books,
records, accounts and other documents required to be maintained under Section
31(a) of the Investment Company Act of 1940 and the rules promulgated thereunder
will be in the physical possession of the Registrant's custodians: The Northern
Trust Company, Fifty South LaSalle Street, Chicago, Illinois 60675, and
CoreStates Bank, N.A., Broad and Chestnut Streets, Philadelphia, Pennsylvania
19101, except for certain transfer agency and fund accounting records which are
in the physical possession of DST Systems, Inc., 811 Main Street, Kansas City,
Missouri 64105, the Registrant's transfer agent, and SEI Financial Management
Corporation, the Trust's administrator, 1 Freedom Valley Drive, Oaks,
Pennsylvania 19456-0100, respectively.
Item 31. Management Services
-------------------
Not Applicable.
Item 32. Undertaking
-----------
(a) Within four to six months from the later of (i) the effective
date of this Post-Effective Amendment under the Securities Act of 1933 and (ii)
the actual date that shares of a series are first sold to the public or
operations otherwise begin with respect to such series, the Registrant
undertakes to file a post-effective amendment covering each series of Registrant
that has not commenced operations prior to the effective date of this
Post-Effective Amendment, using financial statements which need not be
certified.
(b) Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to directors, 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 such 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 director, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, 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
C-9
<PAGE>
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in such Act and will be governed by the final
adjudication of such issue.
(c) The Registrant undertakes to furnish, upon request and without
charge, to each person to whom a prospectus is delivered a copy of the latest
annual report to shareholders of such series (except to the extent a series has
not by such time been required to issue an annual report).
C-10
<PAGE>
SIGNATURES
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
Post-Effective Amendment to be signed on its behalf by the undersigned,
thereunto duly authorized, in the City of New York and State of New York, on the
16th day of June 1997.
MORGAN GRENFELL INVESTMENT TRUST
By: /s/ James E. Minnick
--------------------
James E. Minnick
President
Pursuant to the requirements of the Securities Act of 1933, this
Post-Effective Amendment No. 17 to the Registrant's Registration Statement has
been signed by the following persons in the capacities and on the dates
indicated:
Signature Title Date
--------- ----- ----
/s/ James E. Minnick )
- --------------------- )
James E. Minnick Chief Executive Officer )
(Principal Executive )
Officer) and Trustee )
)
)
/s/ John G. Alshefski ) June 16, 1997
- --------------------- )
John G. Alshefski Treasurer and Chief )
Financial Officer )
(Principal Financial and )
Accounting Officer) )
)
Paul K. Freeman* )
- ---------------- )
Paul K. Freeman Trustee )
)
)
Graham E. Jones* )
- ---------------- )
Graham E. Jones Trustee )
<PAGE>
Signature Title Date
--------- ----- ----
William N. Searcy* )
- ------------------ )
William N. Searcy Trustee )
)
)
Patrick W. Disney* )
- ------------------ )
Patrick W. Disney Trustee )
)
)
Hugh G. Lynch* )
- -------------- )
Hugh G. Lynch Trustee )
)
)
Edward T. Tokar* )
- ---------------- )
Edward T. Tokar Trustee )
- ------------
Dated: June 16, 1997
*By: /s/ James E. Minnick
--------------------
James E. Minnick, Attorney-in-Fact, pursuant to powers of attorney.
<PAGE>
Exhibit Index
-------------
Exhibit
Number Document Title
- ------- --------------
11. Consent of Independent Accountants.
17. Financial Data Schedule.
Consent of Independent Accountants
We hereby consent to the incorporation by reference in the Prospectuses and in
the Statements of Additional Information which are incorporated by reference in
this Post-Effective Amendment No. 17 to the registration statement on Form N-1A
(the "Registration Statement") of our report dated December 23, 1996 relating to
the financial statements and financial highlights of Municipal Bond Fund, Fixed
Income Fund, Short-Term Municipal Bond Fund, Short-Term Fixed Income Fund,
Smaller Companies Fund, International Equity Fund, European Equity Fund,
International Small Cap Equity Fund, European Small Cap Equity Fund, Emerging
Markets Equity Fund, Global Fixed Income Fund, International Fixed Income Fund
and Emerging Markets Debt Fund (comprising Morgan Grenfell Investment Trust),
which are incorporated by reference in such Statements of Additional
Information. We also consent to the references to us under the headings
"Financial Statements" and "Independent Accountants" in such Statements of
Additional Information and to the reference to us under the heading "Financial
Highlights" in such Prospectuses.
/s/ Price Waterhouse LLP
- ------------------------
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York 10036
June 20, 1997
<TABLE> <S> <C>
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<NAME> MORGAN GRENFELL MICROCAP FUND
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<PER-SHARE-NII> (.01)
<PER-SHARE-GAIN-APPREC> (.74)
<PER-SHARE-DIVIDEND> 0
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<PER-SHARE-NAV-END> 9.25
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<AVG-DEBT-PER-SHARE> 0
</TABLE>
