<PAGE>
Registration Nos. 33-70116
811-8036
As filed with the Securities and Exchange Commission on January 29, 1998
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
Pre-Effective Amendment No. / /
Post-Effective Amendment No. 13 /X/
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 /X/
Amendment No. 15 /X/
(Check appropriate box or boxes)
THE OFFITBANK INVESTMENT FUND, INC.
(Exact name of Registrant as specified in charter)
3435 Stelzer Road
Columbus, Ohio 43219
(Address of Principal Executive Offices with Zip Code)
-------------------------------------------
Registrant's Telephone Number, including Area Code: (800) 845-8406
-------------------------------------------
Stephen B. Wells, Esq.
OFFITBANK
520 Madison Avenue
New York, New York 10022
(Name and Address of Agent for Service)
-------------------------------------------
with a copy to:
Gary S. Schpero, Esq.
Simpson Thacher & Bartlett
425 Lexington Avenue
New York, New York 10017-3954
Approximate Date of Proposed Public Offering: As soon as practicable after the
effective date of this Registration Statement.
It is proposed that this filing will become effective:
X immediately upon filing pursuant to paragraph (b)
-----
on (date) pursuant to paragraph (b)
-----
on (date) pursuant to paragraph (a)(i)
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75 days after filing pursuant to paragraph (a)(ii)
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on (date) pursuant to paragraph (a)(ii) of rule 485
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60 days after filing pursuant to paragraph (a)(i)
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If appropriate, check the following box:
this post-effective amendment designates a new effective
-----
date for a previously filed post-effective amendment
<PAGE>
Pursuant to Rule 24f-2 under the Investment Company Act of 1940, the Registrant
has previously filed a declaration of registration of an indefinite number of
shares of Capital Stock, $.001 par value per share, of all series of the
Registrant, now existing or hereafter created. Registrant's 24f-2 Notice for
the fiscal year ended December 31, 1996 was filed on February 26, 1997. The
Registrant intends to file its 24f-2 Notice for the fiscal year ended December
31, 1997 on or before March 31, 1998.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
CROSS REFERENCE SHEET
PURSUANT TO RULE 495(a)
UNDER THE SECURITIES ACT OF 1933
N-1A ITEM NO. LOCATION
- ------------- --------
PART A PROSPECTUS CAPTION
- ------ ------------------
Item 1. Cover Page Cover Page
Item 2. Synopsis Prospectus Summary; Expense
Information
Item 3. Condensed Financial Financial Highlights
Information
Item 4. General Description of
Registrant Prospectus Summary; Investment
Objectives and Policies; Other
Investment Policies and Risks;
Special Risk Considerations; The
Transfer; Limiting Investment
Risks; Additional Information;
Appendix A; Appendix B
Item 5. Management of the Fund Management; Fund Expenses
Item 5A. Management's Discussion of
Fund Performance Not Applicable
Item 6. Capital Stock and Other Dividends and Distributions;
Securities Taxes;Additional Information;
Reports to Shareholders
Item 7. Purchase of Securities
Being Offered Management of shares; Shareholder
Services
Item 8. Redemption or Repurchase Redemption of Shares; Shareholder
Services
Item 9. Pending Legal Proceedings Not Applicable
<PAGE>
STATEMENT OF ADDITIONAL
PART B INFORMATION CAPTION
- ------ -----------------------
Item 10. Cover Page Cover Page
Item 11. Table of Contents Table of Contents
Item 12. General Information and
History Not Applicable
Item 13. Investment Objectives and
Policies Additional Information on Portfolio
Instruments and Techniques;
Additional Risk Considerations;
Investment Limitations
Item 14. Management of the Registrant Management of the Fund
Item 15. Control Persons and Principal
Holders of Securities General Information
Item 16. Investment Advisory and
Other Services Management of the Fund
Item 17. Brokerage Allocation Portfolio Transactions
Item 18. Capital Stock and Other
Securities General Information
Item 19. Purchase, Redemption and
Pricing of Securities
Being Offered Management; Purchase of Shares;
Redemption of Shares; Shareholder
Services
Item 20. Tax Status Additional Information Concerning
Taxes
Item 21. Underwriters Distributor
Item 22. Calculation of Performance
Data Performance Information
Item 23. Financial Statements Report of Independent Accountants;
Financial Information
PART C
- ------
Information required to be included in Part C is set forth under the
appropriate Item, so numbered, in Part C of the Registration Statement.
<PAGE>
PART A
<PAGE>
PRELIMINARY NOTE
The Registrant's Prospectus dated May 1, 1997, as supplemented August 29, 1997
and October 20, 1997, to which the interim financial statements contained herein
are added by Post-Effective Amendment No. 13, is incorporated by reference to
the Registrant's filing of definitive copies under Rule 497(c).
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
U.S. GOVERNMENT SECURITIES FUND
MORTGAGE SECURITIES FUND
Supplement Dated January 29, 1998
to the Prospectus Dated May 1, 1997 as Supplemented August 29, 1997
and October 20, 1997
FINANCIAL HIGHLIGHTS
(UNAUDITED)
The table below of Financial Highlights (unaudited) sets forth per-share data
for a share of capital stock outstanding for the U.S. Government Securities Fund
and Mortgage Securities Fund (the "Funds"), portfolios of The OFFITBANK
Investment Fund, Inc. (the "Company"), for the period ended December 31, 1997.
Financial highlights are not presented for the Advisor Shares since no such
shares were outstanding during the period presented. This Supplement is
provided to update, and should be read in conjunction with, the information
provided in the Prospectus and the related financial statements and notes
thereto appearing in the Funds' Statement of Additional Information covering the
period ended December 31, 1997. The Statement of Additional Information may be
obtained from the Company free of charge by calling (800) 618-9510.
<TABLE>
<CAPTION>
SELECTED RATIOS AND DATA FOR A SHARE OF CAPITAL STOCK OUTSTANDING THROUGH THE PERIOD:
- --------------------------------------------------------------------------------
MORTGAGE U.S. GOVERNMENT
SECURITIES FUND SECURITIES FUND
(SELECT SHARES) (SELECT SHARES)
--------------------- ---------------------
FOR THE PERIOD FROM FOR THE PERIOD FROM
JULY 1, 1997* THROUGH JULY 1, 1997* THROUGH
DECEMBER 31, 1997 DECEMBER 31, 1997
--------------------- ---------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD. . . . $ 10.00 $10.00
----------- -----------
Net investment income . . . . . . . . . 0.29 0.27
Net realized and unrealized gains . . . 0.22 0.19
----------- -----------
Total from investment operations. . . . 0.51 0.46
----------- -----------
LESS DIVIDENDS AND DISTRIBUTIONS FROM:
Net investment income . . . . . . . . . (0.30) (0.28)
Realized gains. . . . . . . . . . . . . (0.04) (0.01)
----------- -----------
NET ASSET VALUE, END OF PERIOD. . . . . . . $ 10.17 $10.17
----------- -----------
----------- -----------
TOTAL INVESTMENT RETURN**:. . . . . . . . . 5.10% 4.71%
RATIOS/ SUPPLEMENTAL DATA:
Net assets, end of period (in thousands) $17,037 $3,955
Ratios to average net assets:
Expenses. . . . . . . . . . . . . . . . 0.50%(1) (2) 0.50%(1) (2)
Net investment income . . . . . . . . . 5.80%(1) 5.32%(1)
PORTFOLIO TURNOVER RATE . . . . . . . . . . 80% 153%
</TABLE>
* Commencement of operations.
** Not annualized. Total return is based on the change in net asset value
during the period and assumes reinvestment of all dividends and
distributions.
(1) Annualized.
(2) During the period, certain fees were voluntarily reduced and/ or
reimbursed. If such voluntary fee reductions and/ or reimbursements had
not occurred, the ratio would have been higher.
<PAGE>
PART B
<PAGE>
PRELIMINARY NOTE
The Registrant's Statement of Additional Information dated May 1, 1997, as
supplemented August 29, 1997 and October 20, 1997, to which the interim
financial statements contained herein are added by Post-Effective Amendment No.
13, is incorporated by reference to the Registrant's filing of definitive copies
under Rule 497(c).
-1-
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
SUPPLEMENT DATED JANUARY 29, 1998
TO STATEMENT OF ADDITIONAL INFORMATION DATED MAY 1, 1997
AS SUPPLEMENTED AUGUST 29, 1997 AND OCTOBER 20, 1997
This Supplement is provided to update, and should be read in conjunction
with, the information provided in the Statement of Additional Information.
PLEASE NOTE, THE FOLLOWING REVISIONS REGARDING THE "PERFORMANCE CALCULATIONS"
SECTION ON PAGES 50 THROUGH 52 OF THE STATEMENT OF ADDITIONAL INFORMATION:
TOTAL RETURN (Pages 50 through 52):
The following tables for the U.S. Government Securities Fund and Mortgage
Securities Fund, respectively, sets forth the aggregate total return for each
class of shares for each Fund for the period ended December 31, 1997.
U.S. Government Securities Fund
--------------------------------
Select Advisor
Shares Shares*
------ -------
Since inception (July 1, 1997) . . . . . 4.71% 4.71%
Mortgage Securities Fund
--------------------------------
Select Advisor
Shares Shares*
------ -------
Since inception (July 1, 1997) . . . . . 5.10% 5.10%
- ----------
* The return figures do not reflect the distribution and service fees
currently paid with respect to the Advisor Shares of the Fund. At December
31, 1997, no Advisor Shares for the U.S. Government Securities Fund or
Mortgage Securities Fund had been issued to the public.
The 30-day yield for the Select Shares of the U.S. Government Securities Fund
and Mortgage Securities Fund for the period ended December 31, 1997, were 5.71%
and 6.01%, respectively.
PLEASE NOTE, THE FOLLOWING REVISIONS REGARDING THE "GENERAL INFORMATION" SECTION
ON PAGES 56 THROUGH 59 OF THE STATEMENT OF ADDITIONAL INFORMATION:
CERTAIN OWNERS OF SHARES OF THE COMPANY (This section on Pages 57 through 59 now
reads as follows):
As of January 5, 1998, to the knowledge of the Administrator, the Officers
and the Directors of the Company, as a group, own less than 1% of the
outstanding voting shares of each Fund. As of January 5, 1998, the following
persons owned of record or beneficially 5% or more of the outstanding shares of
any class of shares of a Fund of the Company:
High Yield Fund (Advisor Shares) Shares Owned Percentage
- -------------------------------- ------------ ----------
Donaldson Lufkin & Jenrette Securities Corp 1,446.480 100% (1)
One Pershing Plaza
Jersey City, New Jersey 07399
-2-
<PAGE>
Emerging Markets Fund (Select Shares) Shares Owned Percentage
- ------------------------------------- ------------ ----------
GAF Corporation Master Retirement Trust 1,362,954.325 6.46%
34 Exchange Place
Jersey City, New Jersey 07302
Mall Investment LP 2,589,588.629 12.27%
215 Keo Way
Des Moines, IA 50309
Latin America Equity Fund (Select Shares) Shares Owned Percentage
- ----------------------------------------- ------------ ----------
Stephen Knight Pond Revocable Trust 199,666.727 5.12%
900 Rockford Road
High Point, N.C. 27262
The Noyce Foundation 230,675.244 5.92%
450 Sheridan
Palo Alto, CA 94304
Taube Family Trust 300,768.889 7.72%
1050 Ralston Avenue
Belmont, CA 94002
Lighthouse Inc. 344,844.397 8.85%
111 East 59th Street
New York, N.Y. 10022
Latin America Equity Fund (Adviser Shares) Shares Owned Percentage
- ------------------------------------------ ------------ ----------
Donaldson Lufkin & Jenrette Securities Corp 1,276.817 100% (1)
One Pershing Plaza
Jersey City, New Jersey 07399
Investment Grade Global Debt Fund (Select Shares) Shares Owned Percentage
- ------------------------------------------------- ------------ ----------
BISYS Fund Services 3,200 100% (2)
3435 Stelzer Road
Columbus, OH 43219
U.S. Government Securities Fund (Select Shares) Shares Owned Percentage
- ----------------------------------------------- ------------ ----------
Sonia Grinberg 19,665.683 5.02%
101 Central Park West
New York, N.Y. 10023
Roger Blumencranz IRA Rollover 23,095.159 5.90%
465 East Shore Boulevard
Kings Point, N.Y. 11024
Burton Resnick 24,847.557 6.35%
110 East 59th Street
New York, N.Y. 10022
Cole & Deitz Retirement Trust 30,072.209 7.68%
52 Longview Road
Port Washington, N.Y. 11050
Light & Co 41,072.036 10.49%
P.O. Box 1596
Baltimore, Maryland 21203
-3-
<PAGE>
Real Estate Board of New York, Inc. 55,175.440 14.10%
12 East 41st Street
New York, N.Y. 10017
Zenkel Foundation 67,062.765 17.14%
15 West 53 Street
New York, N.Y. 10019
City Parks Foundations, Inc. 77,590.270 19.83%
830 Fifth Avenue
New York, N.Y. 10021
Mortgage Securities Fund (Select Shares) Shares Owned Percentage
- ---------------------------------------- ------------ ----------
Ellen Liman IRA Rollover 89,310.180 5.30%
1060 Fifth Avenue
New York, N.Y. 10028
Wise Metals Co. Inc. 137,214.597 8.14%
800 Central Avenue
Linthioum, Maryland 21090
City Parks Foundations, Inc. 152,776.245 9.06%
830 Fifth Avenue
New York, N. Y. 10021
Gladys Cole IRA Rollover 194,732.456 11.56%
1211 Avenue of Americas
New York, N.Y. 10036
Danielle Rich Trust 256,868.115 15.24%
36 South Charles Street
Baltimore, Maryland 21201
Ilona Rich Trust 256,868.115 15.24%
36 South Charles Street
Baltimore, Maryland 21201
California Municipal Fund (Select Shares) Shares Owned Percentage
- ----------------------------------------- ------------ ----------
Adam Wetsman 37,536.748 7.00%
2019 San Ysidro Drive
Beverly Hills, California 90210
Dennis Lavinthal 56,222.057 10.48%
14958 Venture Boulevard
Sherman Oaks, California 91403
John Calley and Margaret Calley 98,686.032 18.40%
350 Park Avenue
New York, New York 10022
Elisa Zaffaroni Trust 103,453.649 19.29%
950 Page Mill Road
Palo Alto, California 94304
OFFITBANK Capital 212,773.921 39.69% (2)
520 Madison Avenue
New York, NY 10022
-4-
<PAGE>
New York Municipal Fund (Select Shares) Shares Owned Percentage
- --------------------------------------- ------------ ----------
Sylvia Slifka 207,824.574 5.20%
870 Fifth Avenue
New York, N.Y. 10021
Lawrence Weinbach and Patricia Weinbach 400,455.817 10.03%
136 East 79th Street
New York, N.Y. 10021
OFFITBANK Capital 656,067.124 16.43%
520 Madison Avenue
New York, N.Y. 10022
National Municipal Fund (Select Shares) Shares Owned Percentage
- --------------------------------------- ------------ ----------
Nancy Zeckendorf 74,519.632 26.99% (2)
502 Park Avenue
New York, N.Y. 10022
OFFITBANK CAPITAL 201,560.181 73.00% (2)
520 Madison Avenue
New York, N.Y. 10022
(1) Disclaims beneficial ownership.
(2) Accountholder may be deemed to have "control" as defined under the
Securities Act of 1933.
FINANCIAL INFORMATION (This section on Pages 59 now reads as follows):
The audited financial statements and independent accountant's report thereto
of the Company for the fiscal year ended December 31, 1996 are incorporated
herein by reference to those contained in the Annual Report for the year ended
December 31, 1996 filed with the Securities and Exchange Commission (the
"Commission"). The unaudited financial statements of the California Municipal
Fund for the period ended June 30, 1997 are incorporated by reference to those
contained in the Semi-Annual Report for the 6 month period ended June 30, 1997
filed with the Commission. The unaudited financial statements of the U.S.
Government Securities Fund and Mortgage Securities Fund for the period ended
December 31, 1997 are included herein.
-5-
<PAGE>
OFFITBANK
U.S. GOVERNMENT SECURITIES FUND(UNAUDITED)
Schedule of Portfolio Investments
December 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT VALUE
------ -----
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION (13.9%)
Federal National Mortgage Assoc., Discount Notes, 01/05/98 550,000 $ 549,559
-----------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (COST $549,647) 549,559
-----------
U.S. TREASURY NOTES (81.9%)
Notes, 5.625%, 02/28/01 685,000 683,075
Notes, 6.50%, 08/31/01 695,000 712,153
Notes, 5.75%, 08/15/03 500,000 500,115
Notes, 7.50%, 02/15/05 630,000 692,446
Notes, 7.00%, 07/15/06 605,000 652,928
-----------
TOTAL U.S. TREASURY NOTES (COST $3,210,136) 3,240,717
-----------
BANK SWEEP ACCOUNT (2.9%)
Bank of New York Cash Reserve MM Sweep 113,412 113,412
-----------
TOTAL BANK SWEEP ACCOUNT (COST $113,412) 113,412
-----------
TOTAL INVESTMENTS (COST $3,873,195) (a) - 98.7% 3,903,688
OTHER ASSETS IN EXCESS OF LIABILITIES 1.3% 50,988
-----------
TOTAL NET ASSETS - 100.0% $ 3,954,676
-----------
-----------
</TABLE>
- ----------------
Percentages indicated are based on net assets of $3,954,676.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - DECEMBER 31, 1997 (UNAUDITED)
U.S. GOVERNMENT SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
ASSETS:
Investments, at market value (cost $3,873,195) $3,903,688
Interest and dividends receivable 76,948
Unamortized organization expense 19,400
----------
Total Assets $4,000,036
LIABILITIES:
Dividends payable 19,097
Payable to Adviser 1,540
Fund accounting fees payable 2,271
Transfer agent fees payable 113
Audit fees payable 19,700
Other payables and accrued expenses 2,639
----------
Total Liabilities 45,360
----------
NET ASSETS $3,954,676
----------
----------
Net Assets consist of:
Shares of capital stock, $0.001 par value per share, 388,932 issued
and outstanding $ 389
Additional paid-in capital 3,919,212
Accumulated distributions in excess of net investment income 51,576
Accumulated net realized gains on investment transactions 8,522
Net unrealized appreciation on investments 30,493
----------
NET ASSETS $4,010,192
----------
----------
NET ASSET VALUE (OFFERING AND REDEMPTION PRICE PER SHARE) $ 10.31
----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
U.S. GOVERNMENT SECURITIES FUND
For the period from July 1, 1997* through December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest $59,760
Dividend 958
-------
Total Income $60,718
EXPENSES:
Advisory 3,596
Administration 1,541
Fund accounting 15,049
Transfer agent 230
Audit 19,700
Registration and filing 2,749
Amortization of organization expenses 2,183
Miscellaneous 1,626
-------
Total expenses before waivers/ reimbursements 46,674
Less expenses waived/ reimbursed (41,472)
-------
Net expenses 5,202
-------
NET INVESTMENT INCOME 55,516
-------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS:
Net realized gains on investment transactions 13,802
Net change in unrealized appreciation on investments 30,493
-------
Net realized and unrealized gains on investments 44,295
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $99,811
-------
-------
</TABLE>
* Commencement of operations.
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS (UNAUDITED)
U.S. GOVERNMENT SECURITIES FUND
For the period from
July 1, 1997* through
December 31, 1997
- --------------------------------------------------------------------------------
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 55,516
Net realized gains on investment transactions 13,802
Net change in unrealized appreciation of investments 30,493
----------
Net increase in net assets resulting from operations 99,811
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (55,516)
Excess of net investement income (3,940)
Realized gains (5,280)
----------
Net decrease in net assets from shareholder distributions (64,736)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued 3,943,065
Dividends reinvested 45,655
Cost of shares redeemed (69,119)
----------
Net increase in net assets from capital share transactions 3,919,601
----------
Total increase in net assets 3,954,676
NET ASSETS:
Beginning of period -
----------
End of period $3,954,676
----------
----------
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
U.S. GOVERNMENT SECURITIES FUND
For the period from
July 1, 1997* through
December 31, 1997
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
--------
Income from Investment Operations:
Net investment income 0.25
Net realized and unrealized gains
on investment transactions 0.21
--------
Total income from investment operations 0.46
--------
Less Dividends from:
Net investment income (0.26)
Excess of net investment income (0.02)
Realized gains (0.01)
--------
Net change in net asset value per share 0.17
--------
NET ASSET VALUE, END OF PERIOD $ 10.17
--------
--------
TOTAL RETURN (a) 4.71% (b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $ 3,955
Ratios to average net assets:
Expenses** 0.50% (c)
Net investment income 5.32% (c)
Portfolio turnover rate 153%
- ----------------------------------------------------------------
* Commencement of operations.
** During the period, certain fees were voluntarily reduced and/or
reimbursed. If such voluntary fee reductions and/or reimbursements had
not occurred, the ratio would have been higher.
(a) Total return is based on the change in net asset value during the period
and assumes reinvestment of all dividends and distributions.
(b) Not annualized.
(c) Annualized.
The accompanying notes are an integral part of the financial statements.
<PAGE>
OFFITBANK
MORTGAGE SECURITIES FUND (UNAUDITED)
Schedule of Portfolio Investments
December 31, 1997
<TABLE>
<CAPTION>
SHARES
OR
PRINCIPAL MARKET
AMOUNT VALUE
------ -----
<S> <C> <C>
CORPORATE BONDS (5.3%)
Danske Kredit, 8.00%, 10/01/26 1,900,000 $ 285,199
NYKredit Mortgage, 8.00%, 10/01/26 2,080,000 312,432
Unikredit Realkredit, 8.00%, 10/01/26 2,073,000 311,379
-----------
TOTAL CORPORATE BONDS (COST $950,944) 909,010
-----------
FEDERAL HOME LOAN BANKS (2.7%)
Federal Home Loan Bank, Discount Note, 01/02/98 465,000 464,851
-----------
TOTAL FEDERAL HOME LOAN BANKS (COST $464,926) 464,851
-----------
FEDERAL HOME LOAN MORTGAGE CORPORATION (27.5%)
Federal Home Loan Mortgage Corp., 7.00%, 07/01/12, Gold Pool#E00497 312,251 317,016
Federal Home Loan Mortgage Corp., 7.00%, 08/01/12, #E67369 986,280 1,001,360
Federal Home Loan Mortgage Corp., 7.00%, 09/01/12, #E67493 993,870 1,009,076
Federal Home Loan Mortgage Corp., 6.00%, 02/01/26, Gold Pool#D68418 445,331 430,078
Federal Home Loan Mortgage Corp., 6.00%, 03/01/26, Gold Pool#D69408 476,563 459,873
Federal Home Loan Mortgage Corp., 6.00%, 03/01/26, Gold Pool#D69088 477,859 461,755
Federal Home Loan Mortgage Corp., 6.00%, 05/01/26, Gold Pool#D71231 50,997 49,326
Federal Home Loan Mortgage Corp., 6.00%, 10/01/27 324,054 312,521
Federal Home Loan Mortgage Corp., 6.00%, 12/01/27 685,945 652,720
-----------
TOTAL FEDERAL HOME LOAN MORTGAGE CORPORATION (COST $4,643,660) 4,693,725
-----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION (37.9%)
Federal National Mortgage Assoc., Discount Notes, 01/05/98 935,000 934,251
Federal National Mortgage Assoc., 6.50%, 11/01/03 147,693 148,014
Federal National Mortgage Assoc., 6.50%, 01/01/04 439,568 440,522
Federal National Mortgage Assoc., 6.50%, 12/01/04 198,000 198,416
Federal National Mortgage Assoc., 6.50%, 09/01/04 302,382 303,042
Federal National Mortgage Assoc., 6.50%, 10/01/04 408,337 409,227
Federal National Mortgage Assoc., 7.50%, 07/01/12, Pool#370718 288,554 296,007
Federal National Mortgage Assoc., 6.50%, 05/01/26, Pool#345964 192,042 189,697
Federal National Mortgage Assoc., 7.00%, 02/01/27, Pool 369025 677,089 681,951
Federal National Mortgage Assoc., 6.50%, 08/01/27, Pool#378287 503,092 496,658
Federal National Mortgage Assoc., 7.00%, 10/01/27, Pool 376790 997,936 1,005,100
Federal National Mortgage Assoc., 7.00%, 10/01/27, Pool 397741 330,403 332,775
Federal National Mortgage Assoc., 7.00%, 12/01/97 29,042 29,160
Federal National Mortgage Assoc., 7.00%, 12/01/27 965,542 969,465
-----------
TOTAL FEDERAL NATIONAL MORTGAGE ASSOCIATION (COST $6,392,891) 6,434,285
-----------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (12.0%)
Government National Mortgage Assoc., 9.00%, 10/15/27, Pool # 452816 487,768 521,521
Government National Mortgage Assoc. II, ARM, 6.00%, 10/20/27, Pool 1,008,330 1,017,778
#80122
Government National Mortgage Assoc. II, ARM, 6.00% 11/20/27 495,000 499,639
-----------
TOTAL GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (COST $2,030,864) 2,038,938
-----------
U.S. TREASURY NOTES (13.6%)
Notes, 7.00%, 07/15/06 2,150,000 2,320,323
-----------
TOTAL U.S. TREASURY NOTES (COST $2,299,148) 2,320,323
-----------
BANK SWEEP ACCOUNT (0.5%)
Bank of New York Cash Reserve MM Sweep 87,263 87,263
-----------
TOTAL BANK SWEEP ACCOUNT (COST $87,263) 87,263
-----------
TOTAL INVESTMENTS (COST $16,869,697) (A) - 99.5% 16,948,395
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
OTHER ASSETS IN EXCESS OF LIABILITIES 0.5% 89,024
-----------
TOTAL NET ASSETS - 100.0% $17,037,419
-----------
-----------
</TABLE>
________________
Percentages indicated are based on net assets of $17,037,419.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES - DECEMBER 31, 1997 (UNAUDITED)
MORTGAGE SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Assets:
Investments, at market value (cost $16,869,697) $16,948,395
Interest and dividends receivable 150,197
Receivable for forward currency contracts 25,307
Receivable from Adviser 7,388
Unamortized organization expenses 19,400
Unrealized appreciation on forward currency contracts 3,716
Foreign tax reclaim receivable 987
Prepaid expenses and other assets 348
-----------
Total Assets $17,155,738
Liabilities:
Dividends payable 89,913
Fund accounting fees payable 1,525
Transfer agent fees payable 370
Audit fees payable 19,700
Registration and filing fees payable 5,463
Other payables and accrued expenses 1,348
-----------
Total Liabilities 118,319
-----------
Net Assets $17,037,419
-----------
-----------
Net Assets consist of:
Shares of capital stock, $0.001 par value per share, 1,675,581 issued
and outstanding $ 1,676
Additional paid-in capital 16,908,007
Accumulated distributions in excess of net investment income (13,631)
Accumulated net realized gains on investment transactions 59,242
Net unrealized appreciation of investments and foreign currency translations 82,125
-----------
Net Assets $17,037,419
-----------
-----------
Net Asset Value (offering and redemption price per share) $ 10.17
-----------
-----------
</TABLE>
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
STATEMENT OF OPERATIONS (UNAUDITED)
MORTGAGE SECURITIES FUND
For the period from July 1, 1997* through December 31, 1997
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
INVESTMENT INCOME:
Interest $359,692
Dividend 4,975
--------
Total Income $364,667
EXPENSES:
Advisory 20,098
Administration 8,613
Fund accounting 15,050
Transfer agent 634
Audit 19,717
Registration and filing 7,053
Custodian 3,603
Amortization of organization expenses 2,183
Miscellaneous 1,904
--------
Total expenses before waivers/ reimbursements 78,855
Less expenses waived/ reimbursed (50,010)
--------
Net expenses 28,845
--------
NET INVESTMENT INCOME 335,822
--------
REALIZED AND UNREALIZED GAINS ON INVESTMENTS:
Net realized gains on investment transactions 116,935
Net realized gains on foreign currency transactions 671
Net change in unrealized appreciation on investments 78,698
Net change in unrealized appreciation on foreign currency translations 3,427
--------
NET REALIZED AND UNREALIZED GAINS ON INVESTMENTS 199,731
--------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $535,553
--------
--------
</TABLE>
* Commencement of operations.
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS (unaudited)
MORTGAGE SECURITIES FUND
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
JULY 1, 1997* THROUGH
DECEMBER 31, 1997
- ---------------------------------------------------------------------------------------------------------------
<S> <C>
INVESTMENT ACTIVITIES:
OPERATIONS:
Net investment income $ 335,822
Net realized gains on investment and foreign currency transactions 117,606
Net change in unrealized appreciation of investment and foreign currency transactions 82,125
-----------
Net increase in net assets resulting from operations 535,553
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (335,822)
Excess of net investment income (13,631)
Realized gains (58,364)
-----------
Net decrease in net assets from shareholder distributions (407,817)
CAPITAL SHARE TRANSACTIONS:
Proceeds from shares issued 16,626,836
Dividends reinvested 307,847
Cost of shares redeemed (25,000)
-----------
Net increase in net assets from capital share transactions 16,909,683
-----------
Total increase in net assets 17,037,419
NET ASSETS:
Beginning of period 0
-----------
End of period $17,037,419
-----------
-----------
</TABLE>
* Commencement of operations
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
FINANCIAL HIGHLIGHTS (UNAUDITED)
MORTGAGE SECURITIES FUND
FOR THE PERIOD FROM
JULY 1, 1997* THROUGH
DECEMBER 31, 1997
- --------------------------------------------------------------------------------
NET ASSET VALUE, BEGINNING OF PERIOD $ 10.00
--------
Income from Investment Operations:
Net investment income 0.28
Net realized and unrealized gains
on investment transactions 0.23
--------
Total income from investment operations 0.51
--------
Less Dividends from:
Net investment income (0.29)
Excess of net investment income (0.01)
Realized gains (0.04)
--------
Net change in net asset value per share 0.17
--------
NET ASSET VALUE, END OF PERIOD $ 10.17
--------
--------
TOTAL RETURN (a) 5.10% (b)
RATIOS/SUPPLEMENTAL DATA:
Net assets at end of year (in thousands) $ 17,037
Ratios to average net assets:
Expenses** 0.50% (c)
Net investment income 5.80% (c)
Portfolio turnover rate 80%
- ---------------------------------------------
* Commencement of operations.
** During the period, certain fees were voluntarily reduced and/ or
reimbursed. If such voluntary fee reductions and/ or reimbursements had
not occurred, the ratio would have been higher.
(a) Total return is based on the change in net asset value during the
period and assumes reinvestment of all dividends and distributions.
(b) Not annualized.
(c) Annualized.
The accompanying notes are an integral part of the financial statements.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1 - ORGANIZATION
The OFFITBANK Investment Fund, Inc. (the "Company") was incorporated in
Maryland on September 8, 1993. The Company is registered under the Investment
Company Act of 1940, as amended (the "1940" Act) and operates as a
non-diversified, no-load and open-end management investment company. The
Company consists of eleven separately managed funds, of which two, OFFITBANK
U.S. Government Securities Fund, and OFFITBANK Mortgage Securities Fund
(individually, a "Fund", and collectively, the "Funds") are discussed herein.
The Funds commenced operations on July 1, 1997.
The U.S. Government Securities Fund seeks to provide shareholders with current
income. The Mortgage Securities Fund's investment objective is to maximize
total return from a combination of investment income and capital appreciation.
OFFITBANK (the "Adviser") serves as the Funds' investment adviser. BISYS Fund
Services, Limited Partnership ("BISYS"), serves as the Funds' administrator.
OFFIT Funds Distributor, Inc. (the "Distributor"), serves as the distributor of
the Funds' shares. BISYS Fund Services, Inc. serves as fund accountant and
transfer and dividend disbursing agent of the Funds. BISYS, the Distributor,
and BISYS Fund Services, Inc. are each a wholly-owned subsidiary of The BISYS
Group, Inc.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by the
Funds in the preparation of their financial statements. The policies are in
conformity with generally accepted accounting principles. The preparation of
financial statements requires management to make estimates and assumptions that
affect the reported amounts and disclosures. Actual results could differ from
those estimates. The financial statements reflect all normal recurring
adjustments, which are, in the opinion of management, necessary to a fair
statement of the results for the period presented.
PORTFOLIO VALUATIONS:
Equity securities held by a Fund are valued at the last reported sales price on
the securities exchange or in the principal over-the-counter market in which
such securities are traded, as of the close of business on the day the
securities are being valued or, lacking any sales, at the last available bid
price. Debt securities held by a Fund generally are valued based on quoted bid
prices. Short-term debt investments having maturities of 60 days or less are
valued at amortized cost, which approximates market value, and, if applicable,
adjusted for foreign exchange translation. Securities for which market
quotations are not readily available are valued at fair value determined in good
faith by or under the direction of the Company's Board of Directors. Securities
may be valued by independent pricing services, approved by the Company's Board
of Directors, which use prices provided by market-makers or estimates of market
value obtained from yield data relating to instruments or securities with
similar characteristics.
SECURITIES TRANSACTIONS AND RELATED INCOME:
The Fund records securities transactions on a trade date basis. Interest
income, including accretion of discount and amortization of premium is accrued
daily. Dividend income is recognized on the ex- dividend date. Realized gains
and losses from securities transactions are recorded on the identified cost
basis.
EXPENSES:
The company accounts separately for the assets, liabilities and operations of
each Fund. Direct expenses of a Fund are charged to that Fund, while general
Company expenses are allocated among the Company's respective portfolios.
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
- --------------------------------------------------------------------------------
The investment income and expenses of a fund (other than class specific
expenses) and realized and unrealized gains and losses on investments of a fund
are allocated to each class of shares based upon their relative net asset value
on the date income is earned or expenses are realized and unrealized gains and
losses are incurred.
ORGANIZATION COSTS:
Costs incurred in connection with the organization and initial registration of
the Funds have been deferred and are being amortized over a sixty-month period,
beginning with each Fund's commencement of operations.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from the U.S. Government Securities and the Mortgage Securities Funds'
net investment income, if any, are declared daily and paid monthly. Net realized
gains on portfolio securities, if any, are distributed at least annually by the
Funds. However, to the extent net realized gains can be offset by capital loss
carryovers, such gains will not be distributed. Dividends and distributions are
recorded by the Funds on the ex-dividend date.
The amount of dividends from net investment income and distributions from net
realized gains are determined in accordance with federal income tax regulations
which may differ from generally accepted accounting principles. These
"book/tax" differences are either considered temporary or permanent in nature.
To the extent these differences are permanent in nature, such amounts are
reclassified within the composition of net assets based on their federal
tax-basis treatment; temporary differences do not require a reclassification.
Distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
distributions in excess of net investment income or net realized gains. To the
extent they exceed net investment income and net realized capital gains for tax
purposes, they are reported as distributions of capital.
FEDERAL INCOME TAXES:
It is the Funds' policy to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute timely, all
of its net investment company taxable income and net capital gains to
shareholders. Therefore, no federal income tax provision is required.
FOREIGN CURRENCY TRANSLATION:
The accounting records of the Funds are maintained in U.S. dollars. Foreign
currency amounts are translated into U.S. dollars at the current rate of
exchange to determine the value of investments, assets and liabilities.
Purchases and sales of securities, and income and expenses are translated at the
prevailing rate of exchange on the respective dates of such transactions. The
Funds do not isolate that portion of the results of operations resulting from
changes in foreign exchange rates on investments from the fluctuations arising
from changes in market prices of securities held. Such fluctuations are
included with the net realized and unrealized gains or losses from investments.
Reported net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities and forward currency contracts, sales of
foreign currencies, currency gains or losses realized between the trade and
settlement dates on securities transactions, and the difference between the
amounts of dividends, interest and foreign withholding amounts actually received
or paid. Net unrealized foreign exchange gains and losses arise from changes in
the value of assets and liabilities, other than investments in securities,
resulting from changes in the exchange rate.
REPURCHASE AGREEMENTS:
The Funds may purchase instruments from financial institutions, such as banks
and broker-dealers, subject to the seller's agreement to repurchase them at an
agreed upon time and price ("repurchase agreements"). The seller under a
repurchase agreement is required to maintain the value of the securities
subject to the agreement at not less than the
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
- --------------------------------------------------------------------------------
repurchase price. Default by the seller would, however, expose the relevant
Funds to possible loss because of adverse market action or delay in connection
with the disposition of the underlying obligations.
DERIVATIVE INSTRUMENTS:
Each Fund may invest in various financial instruments including positions in
forward currency contracts, enter into currency swaps and purchase foreign
currency options. The Funds enter into such contracts for the purposes of
hedging exposures to changes in foreign currency exchange rates on their
portfolio holdings.
A forward foreign exchange contract is a commitment to sell or buy a foreign
currency at a future date at a negotiated exchange rate. The Fund bears the
market risk which arises from possible changes in foreign exchange values.
Risks may arise from the potential inability of counterparties to meet the terms
of their contracts and from unanticipated movements in the value of the foreign
currency relative to the U.S. dollar. Forward foreign exchange contracts may
involve market or credit risk in excess of the amounts reflected on the Fund's
statement of assets and liabilities.
The gain or loss from the difference between the cost of original contracts and
the amount realized upon the closing of such contracts is included in net
realized gain on foreign currency transactions. Fluctuations in the value of
forward contracts held at December 31, 1997 are recorded for financial reporting
purposes as unrealized gains and losses by the Funds.
At December 31, 1997, there were no outstanding forward currency contracts for
the U.S. Government Securities Fund. The table below indicates the Mortgage
Securities Fund's outstanding forward currency contract positions at December
31, 1997
MORTGAGE SECURITIES FUND
<TABLE>
<CAPTION>
VALUE ON VALUE AT UNREALIZED
CONTRACT MATURITY ORIGINATION DECEMBER 31, APPRECIATION
CURRENCY AMOUNTS DATE DATE 1997 (DEPRECIATION)
------------ ------------ ----------- ------------- --------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
Sell DAK (6,075,000) 4/1/98 $(893,382) $(889,666) $3,716
</TABLE>
A purchased option contract gives the Fund the right to sell (puts) or purchase
(calls) a specified amount of foreign currency at a fixed price. The maximum
exposure to loss for any purchased option is limited to the premium initially
paid for the option. Such options are reflected at value in the Fund's
portfolio of investments.
NOTE 3 -- AGREEMENTS AND OTHER TRANSACTIONS WITH AFFILIATES
The Company has entered into investment advisory agreements (the "Investment
Advisory Agreements") with the Adviser. Pursuant to the terms of the Investment
Advisory Agreements the Adviser is entitled to a fee that is calculated daily
and paid monthly based on the average daily net assets of each Fund, at the
annual rate of 0.35%. For the period ended December 31, 1997, the Adviser
earned and waived fees of $3,596 and $20,098 for the U.S. Government Securities
Fund and Mortgage Securities Fund, respectively.
BISYS provides the Company with administrative services pursuant to an
administration agreement (the "Administration Agreement"). The services under
the Administration Agreement are subject to the supervision of the Company's
Board of Directors and officers and include the day-to-day administration of
matters related to the corporate existence of the Company, maintenance of its
records, preparation of reports, supervision of the Company's arrangements with
its custodian and assistance in the preparation of the Company's registration
statements under federal and state laws. Pursuant to the Administration
Agreement, the Company pays BISYS a monthly fee for its services at an annual
rate of 0.15% of the aggregate average daily net assets of the Funds. For the
period ended December 31, 1997, BISYS earned and waived fees of $1,541 and
$8,613, for the U.S. Government Securities Fund and Mortgage Securities Fund,
respectively
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
- --------------------------------------------------------------------------------
BISYS Fund Services, Inc., provides the Funds with fund accounting and related
services pursuant to a fund accounting agreement with the Company. For these
services BISYS was paid a fee of $2,500 per month per Fund. For the period
ended December 31, 1997, BISYS Fund Services, Inc. earned fees, including
reimbursement of out of pocket expenses, of $15,049 and $15,050, for the U.S.
Government Securities Fund and Mortgage Securities Fund, respectively.
BISYS Fund Services, Inc., also serves as transfer agent for the Funds and
pursuant to a transfer agency agreement with the Company, receives a per account
fee of $15.00 per year plus reimbursement of certain expenses. For the period
ended December 31, 1997, BISYS Fund Services, Inc. earned fees, including
reimbursement of out of pocket expenses, of $230 and $634, for the U.S.
Government Securities Fund and Mortgage Securities Fund, respectively.
Shares in each Fund are sold on a continuous basis by the Distributor. Solely
for the purpose of reimbursing the Distributor for activities primarily intended
to result in the sale of its shares, each Fund is authorized to spend up to
0.25% of its net assets annually with respect to each class of shares of the
Fund in accordance with a Plan of Distribution (the "Plan") pursuant to Rule
12b-1 promulgated under the 1940 Act. Activities for which the Distributor may
be reimbursed include (but are not limited to) the development and
implementation of direct mail promotions and advertising for the Funds and the
preparation, printing and distribution of prospectuses for the Funds to
recipients other than existing shareholders. For the year December 31, 1997, no
distribution costs were incurred.
Pursuant to a Shareholder Servicing Plan adopted by the Board of Directors of
the Company, the Company may enter into Shareholder Servicing Agreements with
financial institutions ("Shareholder Servicing Agents") with respect to Advisor
Shares. Shareholder administrative support services will be performed by
Shareholder Servicing Agents for their customers who beneficially own Advisor
Shares. For the services provided, the Company's Shareholder Servicing Plan
permits each Fund to pay fees to Shareholder Servicing Agents at an annual rate
of up to 0.25% of the average daily net asset value of Advisor Shares of the
Fund for which such Shareholder Servicing Agents provide services for the
benefit of customers. Shareholder Servicing Agents will provide their customers
with a schedule of any credits, fees or of the terms or conditions that may be
applicable to the investments of customers assets in each Fund's Advisor Shares.
For the year ended December 31, 1997, no shareholder servicing fees were
incurred.
OFFITBANK has voluntarily agreed to limit the expenses ratios for the U.S.
Government Securities Fund and Mortgage Securities Fund at 0.50%. In order to
maintain this ratio, the Adviser has waived its advisory fee and has also agreed
to reimburse the Funds $36,335 and $21,299 respectively.
NOTE 4 -- SECURITIES TRANSACTIONS
For the period ended December 31, 1997, the cost of purchases and the proceeds
from sales of the Funds' portfolio securities (excluding short-term
investments), were as follows:
Purchases Sales
--------- -----
U.S. Government Securities Fund $ 6,146,143 $2,946,063
Mortgage Securities Fund 23,354,225 7,947,670
NOTE 5 -- CAPITAL STOCK TRANSACTIONS.
The Company's Articles of Incorporation, permit the Company to issue ten billion
shares (par value $0.001). Transactions in shares of common stock for the
periods ended December 31, 1997 and December 31, 1996 were as follows:
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)(UNAUDITED)
- --------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES FUND SELECT SHARES
-----------------------------------------------------
PERIOD ENDED
DECEMBER 31, 1997
-----------------------------------------------------
SHARES AMOUNT
---------------- ------------------
Shares issued....... 391,245 3,943,065
Shares reinvested... 4,514 45,655
Shares redeemed..... (6,827) (69,119)
---------------- ------------------
Net increase........ 388,932 3,919,601
---------------- ------------------
---------------- ------------------
MORTGAGE SECURITIES FUND SELECT SHARES
-----------------------------------------------------
PERIOD ENDED
DECEMBER 31, 1997
-----------------------------------------------------
SHARES AMOUNT
---------------- ------------------
Shares issued....... 1,647,704 16,626,836
Shares reinvested... 30,335 307,847
Shares redeemed..... (2,458) (25,000)
---------------- ------------------
Net increase........ 1,675,581 16,909,683
---------------- ------------------
---------------- ------------------
6. OTHER MATTERS. The Mortgage Securities Fund invest in obligations of
foreign entities and securities denominated in foreign currencies. Such
investments involve risk not typically involved in domestic investments. Such
risks include fluctuations in foreign exchange rates, ability to convert
proceeds into U.S. dollars, application of foreign tax laws, foreign investment
restrictions, less publicly available information about foreign financial
instruments, less liquidity resulting from substantially less trading volume,
more volatile prices and generally less government supervision of foreign
securities markets and issuers.
<PAGE>
PART C
<PAGE>
PART C
OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS:
Included in the Prospectus:
(1) Financial Highlights for the periods ended December 31, 1994, December
31, 1995 and December 31, 1996 (audited).
(2) Financial Highlights for the California Municipal Fund for the period
ended June 30, 1997 (unaudited).
(3) Financial Highlights for the U.S. Government Securities Fund and
Mortgage Securities Fund for the period ended December 31, 1997
(unaudited).
Included in the Statement of Additional Information:
(1) Portfolios of Investments dated December 31, 1996 (audited).*
(2) Statements of Assets and Liabilities dated December 31, 1996
(audited).*
(3) Statements of Operations for the period ended December 31, 1996
(audited).*
(4) Statement of Changes in Net Assets for the periods ended December 31,
1995 and December 31, 1996 (audited).*
(5) Financial Highlights for the periods ended December 31, 1994, December
31, 1995 and December 31, 1996 (audited).*
(6) Notes to Financial Statements dated December 31, 1996 (audited).*
(7) Report of Independent Accountants to Financial Statements for the
period ended December 31, 1996.*
(8) Portfolios of Investments for the California Municipal Fund dated June
30, 1997 (unaudited).**
(9) Statements of Assets and Liabilities for the California Municipal Fund
dated June 30, 1997 (unaudited).**
(10) Statements of Operations for the California Municipal Fund for the
period ended June 30, 1997 (unaudited).**
(11) Statement of Changes in Net Assets for the California Municipal Fund
for the period ended June 30, 1997 (unaudited).**
(12) Financial Highlights for the California Municipal Fund for the period
ended June 30, 1997 (unaudited).**
(13) Notes to Financial Statements for the California Municipal Fund dated
June 30, 1997 (unaudited).**
(14) Portfolios of Investments for the U.S. Government Securities Fund and
Mortgage Securities Fund dated December 31, 1997 (unaudited).
(15) Statements of Assets and Liabilities for the U.S. Government
Securities Fund and Mortgage Securities Fund dated December 31, 1997
(unaudited).
(16) Statements of Operations for the U.S. Government Securities Fund and
Mortgage Securities Fund for the period ended December 31, 1997
(unaudited).
(17) Statement of Changes in Net Assets for the U.S. Government Securities
Fund and Mortgage Securities Fund for the period ended December 31,
1997 (unaudited).
(18) Financial Highlights for the U.S. Government Securities Fund and
Mortgage Securities Fund for the period ended December 31, 1997
(unaudited).
(19) Notes to Financial Statements for the U.S. Government Securities Fund
and Mortgage Securities Fund dated December 31, 1997 (unaudited).
C-1
<PAGE>
(b) EXHIBITS:
Exhibit
Number Description
------- -----------
1(a) -- Registrant's Articles of Incorporation.(1)
1(b) -- Registrant's Amended and Restated Articles of
Incorporation.(3)
1(c) -- Registrant's Form of Articles Supplementary.(5)
1(d) -- Registrant's Form of Articles Supplementary. (8)
2(a) -- Registrant's By-Laws.(1)
2(b) -- Registrant's Amended and Restated By-Laws.(3)
3 -- None.
4(a) -- Form of Stock Certificate for shares of Class A stock.(3)
4(b) -- Form of Stock Certificate for shares of Class B stock.(5)
4(c) -- Form of Stock Certificate for shares of Class C stock.(3)
4(e) -- Form of Stock Certificate for shares of Class E stock.(5)
4(f) -- Form of Stock Certificate for shares of Class F stock.(5)
4(g) -- Form of Stock Certificate for shares of Class G stock.(5)
4(h) -- Form of Stock Certificate for shares of Class H stock.(5)
4(i) -- Form of Stock Certificate for shares of Class I stock.(8)
4(j) -- Form of Stock Certificate for shares of Class J stock.(8)
4(k) -- Form of Stock Certificate for shares of Class K stock.(8)
5(a) -- Form of Advisory Agreement between Registrant and OFFITBANK
with respect to the High Yield, Global Debt and Emerging
Markets Funds.(3)
5(b) -- Form of Advisory Agreement between the Registrant and
OFFITBANK with respect to the Global Convertible, Latin
America Equity, National Municipal, California Municipal and
New York Municipal Funds.(5)
5(c) -- Agreement to Advisory Agreement between the Registrant
and OFFITBANK reflecting the change in name of the Latin
AmericaEquity, to Latin America Total Return Fund.(6)
5(d) -- Form of Advisory Agreement between Registrant and OFFITBANK
U.S. Government Securities Fund, OFFITBANK Mortgage
Securities Fund and OFFITBANK Total Return Fund.(8)
6(a) -- Form of Supplement to the Distribution Agreement between
Registrant and OFFIT Funds Distributor, Inc. with respect
to the Global Convertible, Latin America Equity, National
Municipal, California Municipal and New York Municipal
Funds.(5)
6(b) -- Amendment to the Distribution Agreement between Registrant
and OFFIT Funds Distributor, Inc. reflecting the change in
name of the Latin America Equity Fund to Latin America Total
Return Fund.(6)
6(c) -- Amendment to the Distribution Agreement in connection with
the reclassification of existing shares of each Fund as
"Select Shares" as of the close of business May 1, 1996, and
the creation of Advisor Shares.(7)
6(d) -- Form of Distribution Agreement between Registrant and OFFIT
Funds Distributor, Inc.(8)
7 -- None.
8(a) -- Form of Custodian Agreement between Registrant and The Chase
Manhattan Bank, N.A. (the "Custodian") with respect to the
High Yield, Global Debt and Emerging Markets Funds.(3)
8(b) -- Form of Custodian Agreement between Registrant and the
Custodian with respect to the Global Convertible, Latin
America Equity, National Municipal, California Municipal and
New York Municipal Funds.(5)
8(c) -- Form of Custodian Agreement between Registrant and The Bank
of New York. (9)
8(d) -- Form of Amendment to the Custodian Agreement between
Registrant and The Bank of New York with respect to the
Emerging Markets Fund. (10)
C-2
<PAGE>
9(a) -- Form of Shareholder Servicing Agreement between the
Registrant and Shareholder Servicing Agents.(7)
9(b) -- Form of Fund Administration Agreement between Registrant and
BISYS Fund Services.(8)
9(c) -- Form of Transfer Agency Agreement between Registrant and
BISYS Fund Services.(8)
9(d) -- Form of Fund Accounting Agreement between Registrant and
BISYS Fund Services.(8)
10 -- Opinion and Consent of Piper & Marbury.(3)
11(a) -- Consent of Price Waterhouse LLP, filed herewith.
11(b) -- Powers of Attorney for Messrs. Landau and Morton.(2)
12 -- None.
13(a) -- Form of Share Purchase Agreement between Registrant and
Furman Selz Incorporated with respect to the High Yield,
Global Debt and
Emerging Markets Funds.(3)
13(b) -- Form of Share Purchase Agreement between Registrant and
Furman Selz Incorporated with respect to the Global
Convertible, Latin America Equity, National Municipal,
California Municipal and New York Municipal Funds.(5)
13(c) -- Form of Share Purchase Agreement between the Registrant and
OFFIT Funds Distributor with respect to U.S. Government
Securities Fund, Mortgage Securities Fund and Total Return
Fund.(8)
14 -- None.
15(a) -- Form of Plan Distribution.(2)
15(b) -- Amendment to Plan of Distribution.(7)
16(a) -- Schedule of computation for the High Yield, Emerging Markets
and New York Municipal Funds.(6)
16(b) -- Schedule of computation for the Latin America Total Return
Fund.(9)
16(c) -- Schedule of computation for the California Municipal Fund.
(10)
16(d) -- Schedule of computation for the U.S. Government Securities
Fund and Mortgage Securities Fund, filed herewith.
18 -- Form of Amended Multiclass Plan Pursuant to Rule 18f-3.(7)
27 -- Financial Data Schedules, filed herewith.
- ----------
* Incorporated in the Statement of Additional Information by reference to the
Registrant's Annual Report filed with the Securities and Exchange
Commission on March 3,1997.
** Incorporated in the Statement of Additional Information by reference to the
Registrant's Semi-Annual Report filed with the Securities and Exchange
Commission on June 30,1997.
(1) Exhibit is incorporated herein by reference to the Registrant's
Registration Statement on Form N-1A, filed October 8, 1993, Registration
Nos. 33-70116 and 811-8036 (the "Registration Statement").
(2) Exhibit is incorporated herein by reference to Pre-Effective Amendment No.
1, filed November 24, 1993 to the Registration Statement.
(3) Exhibit is incorporated herein by reference to Pre-Effective Amendment No.
2, filed January 31 1994, to the Registration Statement.
(4) Exhibit is incorporated herein by reference to Post-Effective Amendment No.
2, filed on August 26, 1994, to the Registration Statement.
(5) Exhibit is incorporated herein by reference to Post-Effective Amendment No.
3, filed on November 25, 1994, to the Registration Statement.
(6) Exhibit is incorporated herein by reference to Post-Effective Amendment No.
6, filed on February 29, 1996, to the Registration Statement.
(7) Exhibit is incorporated herein by reference to Post-Effective Amendment No.
7, filed on April 27, 1996, to the Registration Statement.
(8) Exhibit is incorporated herein by reference to Post-Effective Amendment No.
10, filed on February 14, 1997.
C-3
<PAGE>
(9) Exhibit is incorporated herein by reference to Post-Effective Amendment No.
11, filed on April 30, 1997.
(10) Exhibit is incorporated herein by reference to Post-Effective Amendment No.
12, filed on August 29, 1997.
(11) To be filed by subsequent amendment.
ITEM 25. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH
REGISTRANT.
None.
ITEM 26. NUMBER OF HOLDERS OF SECURITIES.
<TABLE>
<CAPTION>
Number of Record Holders
Title of Class at January 5, 1998
-------------- ------------------
<S> <C>
Select Shares of OFFITBANK High Yield Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 1195
Advisor Shares of OFFITBANK High Yield Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 0
Select Shares of OFFITBANK Emerging Markets Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 272
Advisor Shares of OFFITBANK Emerging Markets Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 0
Select Shares of OFFITBANK Investment Grade Global Debt Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 1
Advisor Shares of OFFITBANK Investment Grade Global Debt Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 0
Select Shares of OFFITBANK Latin America Equity Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 137
Advisor of OFFITBANK Latin America Equity Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 1
Select Shares of OFFITBANK Global Convertible Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 1
Advisor Shares of OFFITBANK Global Convertible Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 0
Select Shares of OFFITBANK National Municipal Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 3
Advisor Shares of OFFITBANK National Municipal Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 0
Select Shares of OFFITBANK California Municipal Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 9
Advisor Shares of OFFITBANK California Municipal Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 0
Select Shares of OFFITBANK New York Municipal Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 71
C-4
<PAGE>
Advisor Shares of OFFITBANK New York Municipal Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 0
Select Shares of OFFITBANK Mortgage Securities Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 31
Advisor Shares of OFFITBANK Mortgage Securities Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 0
Select Shares of OFFITBANK U.S. Government Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 17
Advisor Shares of OFFITBANK U.S. Government Fund,
par value $.001 per share . . . . . . . . . . . . . . . . . 0
</TABLE>
ITEM 27. INDEMNIFICATION.
Reference is made to Article VII of Registrant's Articles of
Incorporation (Exhibit 1 hereto), Article IV of Registrant's By-Laws (Exhibit 2
hereto) and Paragraph 4 of the Form of Distribution Agreement between Registrant
and OFFIT Funds Distributor, Inc. (Exhibit 6(e) hereto).
Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended (the "Securities Act"), may be permitted to
directors, officers and controlling persons of the Registrant pursuant to the
foregoing provisions, or otherwise, Registrant understands that in the opinion
of the Securities and Exchange Commission such indemnification is against public
policy as expressed in the Securities Act and is, therefore, unenforceable. In
the event that a claim for indemnification against such liabilities (other than
the payment by Registrant of expenses incurred or paid by a director, officer or
controlling person of 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 appropriate jurisdiction the question whether such
indemnification by it is against policy as expressed in the Securities Act and
will be governed by the final adjudication of such issue.
ITEM 28. BUSINESS AND OTHER CONNECTIONS OF INVESTMENT ADVISER.
The Adviser provides a wide range of asset management services to
individuals, institutions and retirement benefit
plans.
To the knowledge of Registrant, none of the Directors or executive
officers of the Adviser except those described below, are or have been, at any
time during the past two years, engaged in any other business, profession,
vocation or employment of a substantial nature.
C-5
<PAGE>
<TABLE>
<CAPTION>
Principal Occupation
or Other Employment
of a Substantial
Position with Nature During the
Name Offitbank Past Two Years
---- --------- --------------
<S> <C> <C>
H. Furlong Baldwin Director Chairman of the Board,
Mercantile Bankshares Inc. Mercantile Bankshares
Two Hopkins Plaza
Baltimore, MD 21201
Marchese Alessandro di Montezemolo Director Private Investor
P.O. Box 5057
New York, New York 11969
David I. Margolis Director Chairman and Chief
147 East 48th Street Executive Officer,
New York, New York 10017 Coltec Industries, Inc.
Harvey M. Meyerhoff Director Chairman of the Board,
Magna Holdings, Inc. Magna Holdings, Inc.
25 South Charles Street
Suite 2100
Baltimore, MD 21201
Morris W. Offit, C.F.A. Director Chairman of the Board
OFFITBANK OFFITBANK
520 Madison Avenue
New York, New York 10022
Dr. George Randolph Packard Director Professor, The Paul H.
4425 Garfield Street, N.W. Nitze School of Advanced
Washington, D.C. 20007 International Studies,
Johns Hopkins University
Edward V. ("Ned") Regan Director President
The Jerome Levy Economics The Jerome Levy Economics
Institute of Bard College Institute of Bard
31 West 52nd Street, 17th Street College
New York, New York 10019
B. Lance Sauerteig, Esq. Director President, First Spring
130 Edgehill Road Corporation
New Haven, CT 06511
Ricardo Steinbruch Director Private Investor
Grupo Vicuhna
Rua Itacolomi 412, Higienopolis
Sao Paulo, S.P. 01239-020
Brazil
</TABLE>
ITEM 29. PRINCIPAL UNDERWRITER.
(a) Not applicable.
(b) The information required by Item 29(b) with respect to each director,
officer or partner of OFFIT Funds Distributor, Inc. is incorporated by reference
to Schedule A on Form BD filed by OFFIT Funds Distributor, Inc. pursuant to the
Securities Exchange Act of 1934 (SEC File No. 8-46960)
C-6
<PAGE>
<TABLE>
<CAPTION>
Positions and
Name and Principal Positions and Offices Offices with
Business Address with Underwriter Registrant
- ---------------- ---------------- ----------
<S> <C> <C>
Lynn J. Mangum Chairman/CEO None
150 Clove Road
Little Falls, NJ 07424
Robert J. McMullan Executive Vice President/ None
150 Clove Road Treasurer
Little Falls, NJ 07424
J. David Huber President None
3435 Stelzer Road
Columbus, Ohio 43219
Kevin J. Dell Vice President/ General None
150 Clove Road Counsel/Secretary
Little Falls, NJ 07424
Mark J. Rybarczyk Senior Vice President None
11 Greenway Plaza
Suite 300
Houston, TX 77046
Dennis Sheehan Senior Vice President None
150 Clove Road
Little Falls, NJ 07424
William Tomko Senior Vice President None
3435 Stelzer Road
Columbus, Ohio 43219
George Martinez Senior Vice President None
3435 Stelzer Road
Columbus, Ohio 43219
Dale Smith Vice President None
3435 Stelzer Road
Columbus, Ohio 43219
Michael Burns Vice President None
3435 Stelzer Road
Columbus, Ohio 43219
Bruce Treff Assistant Secretary None
3435 Stelzer Road
Columbus, Ohio 43219
Annamaria Porcaro Assistant Secretary None
150 Clove Road
Little Falls, NJ 07424
(c) Not applicable.
</TABLE>
C-7
<PAGE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS.
All accounts, books and other documents required to be maintained by
Section 31(a) of the Investment Company Act of 1940, as amended (the "1940
Act"), and the rules thereunder will be maintained at the offices of:
(1) The OFFITBANK Investment Fund, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
(records relating to the Company)
(2) OFFITBANK
520 Madison Avenue
New York, New York 10022
(advisory records)
(3) OFFIT Funds Distributor, Inc.
3435 Stelzer Road
Columbus, Ohio 43219
(records of principal underwriter)
ITEM 31. MANAGEMENT SERVICES.
Not applicable.
ITEM 32. UNDERTAKINGS.
(a) Registrant undertakes to call a meeting of shareholders for the
purpose of voting upon the question of removal of one or more of Registrant's
directors when requested in writing to do so by the holders of at least 10% of
Registrant's outstanding shares of common stock and, in conjunction with such
meeting, to assist in communications with other shareholders in this regard, as
provided under Section
16(c) of the 1940 Act.
(b) Registrant undertakes to furnish each person to whom a prospectus
is delivered with a copy of the Registrant's annual report to shareholders, upon
request and without charge.
(c) Registrant hereby undertakes to file a post-effective amendment,
using financial statements which need not be audited, within four to six months
from the start of operations of the Total Return Fund, Global Debt Fund, Global
Convertible Fund and the National Municipal Fund.
C-8
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, as amended, the Registrant certifies that it
meets all the requirements for effectiveness of this Registration Statement
pursuant to Rule 485(b) under Securities Act of 1933 and has duly caused this
Registration Statement 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 29th day
of January, 1998.
THE OFFITBANK INVESTMENT FUND, INC.
By: /s/ Morris W. Offit
----------------------------------
Morris W. Offit, President
Pursuant to the requirements of the Securities Act of 1933, this Amendment
to its Registration Statement has been signed below by the following persons in
the capacities and on the 29th day of January, 1998.
SIGNATURE TITLE
- --------- -----
Morris W. Offit * Director, Chairman of
- ------------------------------ the Board and President
Morris W. Offit
(Principal Executive Director)
Edward J. Landau * Director
- ------------------------------
Edward J. Landau
The Very Reverend James Parks Morton * Director
- --------------------------------------
The Very Reverend James Parks Morton
/s/ Wallace Mathai-Davis Treasurer and Secretary
- ------------------------------
Wallace Mathai-Davis
/s/ Morris W. Offit
- ------------------------------
Attorney-in-fact
THE OFFITBANK INVESTMENT FUND, INC.
- ----------------------------------------
* Pursuant to Power of Attorney filed with Pre-Effective Amendment No. 1 dated
November 24, 1993.
C-9
<PAGE>
INDEX TO EXHIBITS
Exhibit Sequentially
Number Description of Exhibit
- ------ ----------------------
11(a) Consent of Price Waterhouse, LLP.
16(d) Schedule of Computation for U.S. Government
Securities Fund and Mortgage Securities Fund.
27 Financial Data Schedules.
C-10
<PAGE>
EXHIBIT 11(a)
Consent of Price Waterhouse LLP
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference into the Prospectus and the
Statement of Additional Information constituting parts of this Post-Effective
Amendment No. 13 to the registration statement on Form N-1A (the "Registration
Statement") of our report dated February 14, 1997 relating to the financial
statements and financial highlights appearing in the December 31, 1996 Annual
Report of the OFFITBANK High Yield Fund, OFFITBANK Emerging Markets Fund,
OFFITBANK Latin America Total Return Fund, and OFFITBANK New York Municipal Fund
(each constituting a portfolio of The OFFITBANK Investment Fund, Inc.), which
are also incorporated by reference into the Registration Statement. We also
consent to the references to us under the heading "Independent Accountants" in
the Statement of Additional Information and under the heading "Financial
Highlights" in the Prospectus.
PRICE WATERHOUSE LLP
New York, New York
January 23, 1998
<PAGE>
EXHIBIT 16(d)
Schedule of Computation for U.s. Government Securities Fund and
Mortgage Securities Fund
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
EXHIBIT 16
TOTAL RETURN
U.S. GOVERNMENT SECURITIES FUND - SELECT SHARES
AGGREGATE TOTAL RETURN
WITH SALES CHARGE OF: 0.00%
- -----------------------------------
T = (ERV/P)^1/N - 1
WHERE: T = TOTAL RETURN
ERV = ENDING REDEEMABLE VALUE AT THE END
OF THE PERIOD OF A HYPOTHETICAL
$1,000 INVESTMENT MADE AT THE
BEGINNING OF THE PERIOD.
P = A HYPOTHETICAL INITIAL PAYMENT OF $1,000.
N = NUMBER OF DAYS
EXAMPLE:
SINCE INCEPTION: ( 07/01/97 TO 12/31/97 ):
( 1,023.3 /1000^(1/( 183 /365))-1) = 4.71%
<PAGE>
THE OFFITBANK INVESTMENT FUND, INC.
EXHIBIT 16
TOTAL RETURN
MORTGAGE SECURITI ES FUND - SELECT SHARES
AGGREGATE TOTAL RETURN
WITH SALES CHARGE OF: 0.00%
- -----------------------------------
T = (ERV/P)^1/N - 1
WHERE: T = TOTAL RETURN
ERV = ENDING REDEEMABLE VALUE AT THE END
OF THE PERIOD OF A HYPOTHETICAL
$1,000 INVESTMENT MADE AT THE
BEGINNING OF THE PERIOD.
P = A HYPOTHETICAL INITIAL PAYMENT OF $1,000.
N = NUMBER OF DAYS
EXAMPLE:
SINCE INCEPTION: ( 07/01/97 TO 12/31/97 ):
( 1,025.3 /1000^(1/( 183 /365))-1) = 5.10%
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000912521
<NAME> OFFITBANK INVESTMENT FUND, INC.
<SERIES>
<NUMBER> 01
<NAME> MORTGAGE SECURITIES FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 16869697
<INVESTMENTS-AT-VALUE> 16948395
<RECEIVABLES> 183879
<ASSETS-OTHER> 23464
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 17155738
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 118319
<TOTAL-LIABILITIES> 118319
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 16909683
<SHARES-COMMON-STOCK> 1675581
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 13631
<ACCUMULATED-NET-GAINS> 59242
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 82125
<NET-ASSETS> 7037419
<DIVIDEND-INCOME> 4975
<INTEREST-INCOME> 359692
<OTHER-INCOME> 0
<EXPENSES-NET> 28845
<NET-INVESTMENT-INCOME> 335822
<REALIZED-GAINS-CURRENT> 117606
<APPREC-INCREASE-CURRENT> 82125
<NET-CHANGE-FROM-OPS> 535553
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 349453
<DISTRIBUTIONS-OF-GAINS> 58364
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1647704
<NUMBER-OF-SHARES-REDEEMED> 2458
<SHARES-REINVESTED> 30335
<NET-CHANGE-IN-ASSETS> 17037419
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 20098
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 78855
<AVERAGE-NET-ASSETS> 11554521
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.29
<PER-SHARE-GAIN-APPREC> 0.22
<PER-SHARE-DIVIDEND> 0.30
<PER-SHARE-DISTRIBUTIONS> 0.04
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.17
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000912521
<NAME> OFFITBANK INVESTMENT FUND, INC.
<SERIES>
<NUMBER> 02
<NAME> U.S. GOVERNMENT SECURITIES FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JUL-01-1997
<PERIOD-END> DEC-31-1997
<INVESTMENTS-AT-COST> 3873195
<INVESTMENTS-AT-VALUE> 3903688
<RECEIVABLES> 76948
<ASSETS-OTHER> 19400
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 4000036
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 45360
<TOTAL-LIABILITIES> 45360
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 3919601
<SHARES-COMMON-STOCK> 388932
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 3940
<ACCUMULATED-NET-GAINS> 8522
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 30493
<NET-ASSETS> 3954676
<DIVIDEND-INCOME> 958
<INTEREST-INCOME> 59760
<OTHER-INCOME> 0
<EXPENSES-NET> 5202
<NET-INVESTMENT-INCOME> 55516
<REALIZED-GAINS-CURRENT> 13802
<APPREC-INCREASE-CURRENT> 30493
<NET-CHANGE-FROM-OPS> 99811
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 59456
<DISTRIBUTIONS-OF-GAINS> 5280
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 391245
<NUMBER-OF-SHARES-REDEEMED> 6827
<SHARES-REINVESTED> 4514
<NET-CHANGE-IN-ASSETS> 3954676
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 3596
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 46674
<AVERAGE-NET-ASSETS> 2083054
<PER-SHARE-NAV-BEGIN> 10.00
<PER-SHARE-NII> 0.27
<PER-SHARE-GAIN-APPREC> 0.19
<PER-SHARE-DIVIDEND> 0.28
<PER-SHARE-DISTRIBUTIONS> 0.01
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.17
<EXPENSE-RATIO> 0.50
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
