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FINANCIAL INVESTORS TRUST March 31, 1997
370 Seventeenth Street
Suite 2700
Denver, Colorado 80202
For additional information, call (800)298-3442
U.S. GOVERNMENT MONEY MARKET FUND
This Prospectus describes the U.S. Government Money Market Fund (the
"Fund"), a diversified no-load money market fund offered to municipal and other
institutional investors by Financial Investors Trust (the "Trust") (formerly
Institutional Investors Trust), a Delaware business trust. Shares of the Fund
are sold without the imposition of Rule 12b-1 fees or other sales-related
charges.
The Fund seeks to provide investors with as high a level of current income
as is consistent with the preservation of capital and liquidity by investing
exclusively in obligations issued or guaranteed as to principal and interest by
the U.S. Government or by any of its agencies or instrumentalities and
repurchase agreements collateralized to 102% by these obligations. The Fund is
required to maintain a dollar-weighted average portfolio maturity of 90 days or
less and seeks to maintain its net asset value per share at $1.00 for purposes
of purchases and redemptions.
Shares of the Fund are sold primarily to municipal investors, including
municipalities, counties and state agencies, as well as other institutional
investors such as broker/dealers, corporations, investment advisers, credit
unions, banks, insurance companies and other financial institutions.
The Fund is sponsored and distributed by ALPS Mutual Funds Services, Inc.
("ALPS" or the "Administrator" or "Distributor") and is advised by GE Investment
Management Incorporated ("GEIM" or the "Adviser").
SHARES IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT INSURED BY THE FDIC, THE FEDERAL RESERVE
BOARD, OR ANY OTHER AGENCY OR INSURER AND THEY MAY INVOLVE INVESTMENT RISKS
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
This Prospectus sets forth concisely the information you should consider
before investing in the Fund. Please read this Prospectus and keep it for future
reference. Additional information about the Fund is contained in a Statement of
Additional Information (the "Statement of Additional Information") which has
been filed with the Securities and Exchange Commission and is available upon
request without charge by writing to or calling the Trust at the address and
telephone number listed above. The Statement of Additional Information bears the
same date as this Prospectus and is incorporated herein by reference.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE
ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE. AN INVESTMENT IN THE FUND IS NEITHER INSURED NOR GUARANTEED
BY THE U.S. GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL BE ABLE
TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
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TABLE OF CONTENTS
Page
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EXPENSE SUMMARY. . . . . . . . . . . . . . . . . . . . . . . . . 3
FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . 4
FUND OPERATIONS. . . . . . . . . . . . . . . . . . . . . . . . . 6
SUITABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . 9
MANAGEMENT OF THE FUND . . . . . . . . . . . . . . . . . . . . . 9
HOW TO INVEST IN THE FUND. . . . . . . . . . . . . . . . . . . . 10
HOW TO REDEEM SHARES . . . . . . . . . . . . . . . . . . . . . . 11
SHAREHOLDER SERVICES . . . . . . . . . . . . . . . . . . . . . . 13
TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . 14
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EXPENSE SUMMARY
The summary below shows shareholder transaction expenses imposed by the
Fund and annual Fund operating expenses based on the actual operating expenses
for the fiscal year ended April 30, 1996, adjusted to reflect current fees of
the Fund. A hypothetical example based on the summary is also shown.
"Shareholder Transaction Expenses" are charges you pay when buying or selling
shares of the Fund whereas "Annual Fund Operating Expenses" are paid out of the
Fund's assets and include fees for portfolio management, Fund administration and
other services.
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load on Purchases
of Fund Shares None
Deferred Sales Load None
Redemption Fees None
Exchange Fee None
ANNUAL FUND OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS)
The Management Fees described in the table below are based
upon the average daily net assets of the Fund for the fiscal year
ended April 30, 1996. Management Fees may be higher to the extent
the Fund's average net assets exceed $500 million. Please read the
following Annual Fund Operating Expenses summary and accompanying
footnotes carefully before investing.
Management Fees(1)
0.04%
12b-1 Fees None
All Other Expenses(2)
(Net of Fee Waivers and Reimbursements) 0.16%
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Total Fund Operating Expenses
(Net of Fee Waivers and Reimbursements)(2) 0.20%
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(1) The Fund is obligated to pay management fees to GEIM at the maximum
annual rate of 0.08% of the Fund's average net assets. Under its Investment
Advisory Agreement with the Fund, GEIM is entitled to receive management fees of
0.04% on the first $500 million of average net assets of the Fund, 0.06% on the
next $500 million and 0.08% on average net assets in excess of $1 billion.
(2) The amount for "All Other Expenses" includes administration fees
payable to the Administrator calculated daily and payable monthly, at an
annual rate of the greater of $90,000 or 0.18% of average daily net assets of
the Trust up to $500 million, 0.15% of average daily net assets of the Trust
in excess of $500 million up to $1 billion and 0.12% of average daily net
assets of the Trust in excess of $1 billion. The Administrator has stated
that it will voluntarily waive a portion of the administration fees otherwise
payable by the Fund, as well as voluntarily assume a portion of the Fund
expenses, to the extent necessary for the Fund to maintain a total expense
ratio of not more than 0.20% of the average net assets of the Fund. Without
this voluntary fee waiver and assumption of expenses, and assuming payment of
the maximum management fee, All Other Expenses and Total Fund Operating
Expenses would be 0.44% and 0.52%, respectively, of the average net assets of
the Fund. The Administrator reserves the right to modify or terminate the fee
waiver and assumption of expenses at any time.
THE FOLLOWING EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF FUTURE
EXPENSES. THE EXPENSES SET FORTH ABOVE AND THE EXAMPLE SET FORTH BELOW REFLECT
THE NON-IMPOSITION OF CERTAIN FEES AND EXPENSES. THE ACTUAL EXPENSES MAY BE
GREATER OR LESSER THAN THOSE SHOWN.
EXAMPLE:
Based upon the above summary of expenses and assuming a 5% annual rate of
return, redemption at the end of each time period and the reinvestment of all
dividends and distributions, you would pay the following expenses on a
$2,000,000 investment in the Fund.
1 Year $4,100
3 Years $12,899
5 Years $22,563
10 Years $51,079
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OTHER INFORMATION:
The Expense Summary and Example are intended to help you understand the
expenses you would bear either directly (as with the Transaction Expenses) or
indirectly (as with the Annual Fund Operating Expenses) as a Fund shareholder.
As stated above, the Fund does not impose any sales-related charges in
connection with purchases of its shares, although certain service institutions
may charge their clients fees in connection with purchases and sales for the
accounts of their clients. These fees are in addition to the expenses shown in
the Expense Summary and Example. For a more complete description of the Fund's
operating expenses, see "Management of the Fund" in this Prospectus and the
Statement of Additional Information.
FINANCIAL HIGHLIGHTS
The financial highlights have been derived from the Fund's financial
statements, which have been audited by Deloitte & Touche LLP, independent
auditors, whose report on the financial statement of the Fund is included in
the Statement of Additional Information. The financial highlights reflect the
operations of the Fund as the Short-Term U.S. Government Income Fund when it
was not a money market fund and had different investment policies and
expenses, and a fluctuating net asset value not maintained at $1.00 per
share. The Fund was changed to a money market fund on July 10, 1996 following
a special meeting of the Fund's shareholders on June 27, 1996. The financial
highlights also reflect the operations of the Fund while the Fund's
investment adviser was FGIC Advisors, Inc. GEIM was approved as the Fund's
investment adviser at a Special Meeting of shareholders of the Fund on March
21, 1997. You should read the financial highlights with the financial
statements and related notes included in the Statement of Additional
Information. Further information about the performance of the Fund is
available in the annual report to shareholders. You may obtain both the
Statement of Additional Information and the annual report to shareholders
free of charge by calling or writing to the Trust at the telephone or address
listed on the first page.
THE FINANCIAL HIGHLIGHTS CONTINUE ON PAGE 5.
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FINANCIAL HIGHLIGHTS
U.S. GOVERNMENT MONEY MARKET FUND
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
<TABLE>
<CAPTION>
For the Year Ended For the Period Ended
April 30, 1996 April 30, 1995(1)
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<S> <C> <C>
Net asset value - beginning of period 9.97 $10.00
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INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.55 0.44
Net realized and unrealized loss on investments 0.00 (0.03)
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Total income from investment operations 0.55 0.41
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DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.55) (0.44)
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Net asset value - end of period $9.97 $9.97
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Total Return 5.65% 4.73%(2)
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RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $31,082 $41,893
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Ratio of expenses to average net assets 0.60% 0.45%(2)
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Ratio of net investment income to average net assets 5.38% 5.23%(2)
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Ratio of expenses to average net assets without fee waivers 0.85% 0.65%(2)
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Ratio of net investment income to average net assets without fee waivers 5.12% 5.03%(2)
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Portfolio turnover rate (3) 0.00% 827.35%(2)
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- -------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Operations commenced on June 7, 1994.
(2) Annualized.
(3) A portfolio turnover rate is, in general, the percentage computed by taking
the lesser of purchases or sales of portfolio securities (excluding securities
with a maturity date of one year or less at the time of acquisition) for a
period and dividing it by the monthly average of the market value of such
securities during the period. Purchases and sales of investment securities
(excluding short-term securities) for the period ended April 30, 1996 were
$11,996,249 and $0, respectively.
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FUND OPERATIONS
At a special meeting held on June 27, 1996, the shareholders of the Fund
approved changing the investment objective and investment policies of the Fund
consistent with their approval to operate the Fund as a money market fund.
INVESTMENT OBJECTIVE
The Adviser will use its best efforts to achieve the investment objective
of the Fund as described below, although the achievement of the investment
objective, of course, cannot be assured. You should not consider the Fund, by
itself, to be a complete investment program. The Fund is a diversified, open-end
management investment company.
The Fund's investment objective is to seek as high a level of current
income as is consistent with the preservation of capital and liquidity. The
securities held by the Fund have remaining maturities of thirteen months or
less. The average weighted maturity of the securities held by the Fund will not
exceed 90 days. The Fund's investment objective may not be changed without
approval of a majority of the Fund's outstanding shares.
In seeking to achieve its investment objective, the Fund will invest
exclusively in obligations issued or guaranteed as to principal and interest by
the U.S. Government or by any of its agencies or instrumentalities, and may
engage in repurchase agreement transactions with respect to such obligations.
U.S. Government securities are high quality debt securities issued or
guaranteed by the U.S. Treasury or by an agency or instrumentality of the U.S.
Government. Not all U.S. Government securities are backed by the full faith and
credit of the United States. Some U.S. Government securities, such as those
issued by the Federal National Mortgage Association, are supported by an
instrumentality's or agency's right to borrow money from the U.S. Treasury under
certain circumstances. Other U.S. Government securities may be supported only by
the credit of the entity that issues them. Due to fluctuations in interest
rates, the market value of such securities may vary during the period a
shareholder owns shares of the Fund. Neither the United States, nor any agency
or instrumentality thereof, has guaranteed, sponsored or approved the Fund or
its shares. The Fund will seek to maintain a stable net asset value at $1.00 per
share. There is no assurance that the Fund's investment objectives will be
achieved.
The Fund, may, consistent with its respective investment objective and
policies, invest in mortgage-related securities issued or guaranteed by the U.S.
Government or its agencies or instrumentalities.
Mortgage-related securities represent pools of mortgage loans assembled for
sale to investors by various governmental agencies such as the Government
National Mortgage Association and government-related organizations such as the
Federal National Mortgage Association and the Federal Home Loan Mortgage
Corporation, as well as by nongovernmental issuers such as commercial banks,
savings and loan institutions, mortgage bankers, and private mortgage insurance
companies. Although certain mortgage-related securities are guaranteed by a
third party or otherwise similarly secured, the market value of the security,
which may fluctuate, is not so secured. If the Fund purchases a mortgage-related
security at a premium, that portion may be lost if there is a decline in the
market value of the security whether resulting from changes in interest rates or
prepayments in the underlying mortgage collateral. To an even greater extent
than other interest-bearing securities, the prices of such securities may be
extremely sensitive to, and inversely affected by, changes in interest rates.
However, though the value of a mortgage-related security may decline when
interest rates rise, the converse is not necessarily true since in periods of
declining interest rates the mortgages underlying the securities are prone to
prepayment. For this and other reasons, a mortgage-related security's stated
maturity may be shortened by unscheduled prepayments on the underlying mortgages
and, therefore, it is not possible to predict accurately the security's return
to the Fund. Lower than estimated prepayments from an increase in interest rates
might alter the expected average life of such securities and increase
volatility. In addition, regular payments received in respect of
mortgage-related securities include both interest and principal. No assurance
can be given as to the return that the Fund will receive when these amounts are
reinvested.
INVESTMENT POLICIES
Securities held by the Fund may be subject to repurchase agreements. A
repurchase agreement is a transaction in which the Fund agrees to purchase
portfolio securities 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. Although the securities subject to a repurchase
agreement might bear maturities exceeding thirteen months, the Fund will only
enter into repurchase agreements with maturities in excess of seven days in
cases where a liquidity feature, such as a put option, permits the
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Fund to liquidate or terminate the repurchase agreement within seven days. The
seller under a repurchase agreement will be required to maintain the value of
the securities subject to the repurchase agreement at not less than 102% of the
principal value of the repurchase agreement, including any accrued interest
earned on the repurchase agreement, and that the Fund's custodian or
subcustodian will take possession of such collateral. The seller will
collateralize the repurchase agreement with U.S. Treasury obligations and other
direct obligations of the U.S. Government or its agencies or instrumentalities.
Default by or bankruptcy of the seller may, however, expose the Fund to possible
loss because of adverse market action or delay or transaction costs in
connection with the disposition of the underlying obligations. The Fund may
enter into agreements with a single counterparty that constitutes more than 5%
of Fund assets.
The Fund may, in certain cases, calculate the maturity of a security with a
floating or variable rate or a demand feature in the manner specified in Rule
2a-7 under the Investment Company Act, with the effect that the maturity is
deemed to be shorter than its final date.
The Fund intends to purchase U.S. Treasury securities at auction from the
Federal Reserve.
Subject to the investment restrictions described below, the Fund may, from
time to time, lend securities from its portfolio to brokers, dealers and
financial institutions and receive collateral in cash or U.S. Treasury
obligations which will be maintained at all times in an amount equal to at least
100% of the current market value of the loaned securities. The Fund will be
entitled to the interest paid upon investment of the cash collateral in its
permitted investments or to the payment of a premium or fee for the loan. The
Fund may at any time call such loans and obtain the securities loaned. However,
if the borrower of the securities should default on its obligation to return the
securities borrowed, the value of the collateral may be insufficient to permit
the Fund to reestablish its position by making a comparable investment due to
changes in market conditions. The Fund may pay reasonable fees to persons
unaffiliated with the Fund in connection with arranging such loans. The Fund
will only engage in securities lending transactions with broker-dealers
registered with the Securities and Exchange Commission, or with federally
supervised banks or savings and loan associations. Currently, the Fund does not
intend to lend portfolio securities.
INVESTMENT RESTRICTIONS
The Fund is subject to a number of investment restrictions which reflect
self-imposed standards as well as federal and state regulatory limitations.
These limitations are designed to minimize certain risks associated with
investing in specified types of securities or engaging in certain transactions.
The investment restrictions may be changed only by a vote of a majority of the
Fund's outstanding shares.
The Fund may not:
1) Purchase securities other than direct obligations of the U.S. Government
or its agencies or instrumentalities, some of which may be subject to
repurchase agreements, and repurchase agreements collateralized to 102% by
direct obligations of the U.S. Government or its agencies or instrumentalities.
2) Make loans, except that the Fund may purchase or hold debt instruments,
lend portfolio securities, and enter into repurchase agreements in accordance
with its investment objective and policies.
3) Borrow money or issue senior securities, except that the Fund may borrow
from banks for temporary purposes in amounts up to 10% of the value of its total
assets at the time of such borrowing; or mortgage, pledge or hypothecate any
assets, except in connection with any such borrowings and in amounts not in
excess of the dollar amounts borrowed or 10% of the value of the Fund's assets
at the time of borrowing. The Fund may not purchase securities while its
borrowings are outstanding.
4) With respect to more than 10% of Fund assets, enter into repurchase
agreements providing for settlement more than seven days after notice without a
liquidity feature such as a put option, permitting the Fund to liquidate or
terminate the repurchase agreement withing seven days.
5) Purchase municipal bonds issued by an issuer any of whose outstanding
bonds are insured by Financial Guarantee Insurance Corporation ("FGIC").
6) Purchase collateralized mortgage obligations, inverse floaters or any
other securities commonly known as "derivatives".
7
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7) Purchase illiquid securities, except for fully collateralized repurchase
agreements that, because of term limitations, are deemed to be illiquid.
8) Hold securities with remaining maturities exceeding thirteen months.
9) Purchase reverse repurchase agreements.
DETERMINATION OF NET ASSET VALUE
The value of the Fund's shares is referred to as "net asset value". Net
asset value per share for purposes of pricing purchases and redemptions is
calculated by adding the value of all securities and other assets belonging to
the Fund, subtracting its liabilities and dividing the result by the number of
the Fund's outstanding shares. Net asset value is determined as of 5:00 p.m.
Eastern Time on each day the New York Federal Reserve and the New York Stock
Exchange are open for business and as of 12:00 noon Eastern Time on each day the
Public Securities Association ("PSA") recommends an early close (each such day
referred to as a "Half Day"). Currently, either the New York Federal Reserve or
the New York Stock Exchange is closed on New Years Day, Martin Luther King Jr.
Day, Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Columbus Day, Veterans' Day, Thanksgiving Day and Christmas Day. The PSA
currently recommends an early close on the business day before each day that
either the New York Federal Reserve or the New York Stock Exchange observes a
holiday, except for Good Friday. Additionally, the PSA recommends an early close
on the business day following Independence Day and Thanksgiving Day.
The Board of Trustees has established procedures designed to maintain a
stable net asset value of $1.00 per share, to the extent reasonably possible.
The Board of Trustees has approved and adopted procedures under Rule 2a-7
under the Investment Company Act of 1940, as amended, which was enacted by
the SEC with the intent of stabilizing money market funds at $1.00 per share.
Under the guidelines of Rule 2a-7, the Fund uses the amortized cost method
to value its portfolio securities. The amortized cost method involves valuing
a security at its cost and amortizing any discount or premium over the period
of maturity, regardless of the impact of fluctuating interest rates on the
market value of the security. Rule 2a-7 also provides that the Fund must also
do a "mark-to-market" analysis, where it is determined the degree to which
any variations may exist between the amortized pricing method and the actual
market price of the securities in the Fund. In the event the Board
determines that a deviation exists which may result in material dilution or
other unfair results to investors or existing shareholders, the Board will
take such corrective action as it regards as necessary and appropriate,
including the sale of portfolio instruments prior to maturity to realize
capital gains or losses or to shorten average portfolio maturity.
Rule 2a-7 also requires the Fund to maintain a dollar weighted average
portfolio maturity of 90 days or less, purchase securities having remaining
maturities of 13 months or less and invest only in securities determined by the
Trust's Board of Trustees to be "eligible securities" and that present minimal
credit risks. The Board of Trustees or its delegate reviews the portfolio
securities monthly and at regularly scheduled quarterly Board of Trustees
meetings. There can be no assurance that at all times the $1.00 price per share
can be maintained. See the Statement of Additional Information for more
details.
DIVIDENDS AND DISTRIBUTIONS
The Fund's net income is declared daily as a dividend at the close of
business on the day of declaration. Your shares begin earning dividends on the
day you purchase them, and continue to earn dividends through and including the
day before you redeem them. See "How to Invest in the Fund". The Fund pays
dividends not later than five business days after the end of each month in the
form of additional shares of the Fund, unless you elect prior to the date of
distribution to receive payment in cash. Reinvested dividends and distributions
receive the same tax treatment as those paid in cash. If you redeem all of your
shares in the Fund, the Fund will pay your dividends in cash not later than five
business days after the redemption.
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SUITABILITY
The Fund is designed as an economical and convenient professionally managed
investment vehicle for institutional investors with cash balances or cash
reserves who seek as high a level of current income as is consistent with the
preservation of capital and liquidity. The Fund is designed to meet the specific
cash management needs of institutional investors such as Municipal Investors,
broker/dealers, corporations, investments advisers, credit unions, banks,
insurance companies and other financial institutions. "Municipal Investors"
include any State, county, municipality, school district, special district or
political subdivision in the United States. The Fund may also be suitable for
institutions seeking an investment vehicle for daily cash sweep or liquidity
purposes on behalf of their clients.
Legislation in each state sets forth guidelines and limitations with
respect to investments by Municipal Investors located within the state. In
addition, Municipal Investors may be subject to local laws or have their own
guidelines and policies prescribing acceptable investments for cash management
purposes. Each Municipal Investor planning to invest in the Fund must
independently verify that the Fund meets all of the criteria of investment
policies and guidelines applicable to such Municipal Investor.
Future statutory or regulatory changes, as well as future judicial or
administrative decisions and interpretations of present and future statutes and
regulations could prevent a Municipal Investor from continuing its investment in
the Fund. Each Municipal Investor should therefore remain aware of any changes
in the applicable regulation of permitted investments.
The Fund offers the advantages of purchasing power efficiencies and
diversification of risk. Generally, in purchasing debt instruments from
dealers, the percentage difference between the bid and asked price tends to
decrease as the size of the transaction increases. The Fund also offers
investors the opportunity to participate in a portfolio of U.S. Treasury
obligations which is more diversified in terms of issuers and maturities than a
portfolio a single investor may otherwise be able to invest in.
Investment in the Fund relieves the investor of money management and
administrative burdens usually associated with the direct purchase and sale of
U.S. Treasury debt instruments. This includes the selection of the portfolio
investments; surveying the market for the best terms at which to buy and sell;
scheduling and monitoring maturities and reinvestments; receipt, delivery and
safekeeping of securities; and portfolio recordkeeping.
The Fund qualifies as an eligible investment for federally chartered credit
unions pursuant to Sections 107 of the Federal Credit Union Act and Part 703 of
the National Credit Union Administration Rules and Regulations. The Fund
intends to review changes in the applicable laws, rules and regulations
governing eligible investments for federally chartered credit unions, and take
such action as may be necessary so that the investments of the Fund qualify as
eligible investments under the Federal Credit Union Act and the regulations
thereunder. Shares of the Fund, however, may or may not qualify as eligible
investments for particular state chartered credit unions. The Fund encourages
each state chartered credit union to consult qualified legal counsel concerning
whether the Fund is a permissible investment under the laws applicable to it.
MANAGEMENT OF THE FUND
INVESTMENT ADVISER
At a meeting held on January 20, 1997, the Trustees approved a new
Investment Advisory Agreement with GEIM. The new Investment Advisory
Agreement was submitted to shareholders for their consideration pursuant to
a Proxy Statement dated March 3, 1997 and subsequently approved by a
majority of the shareholders at a Special Meeting held on March 21, 1997.
The Adviser is a wholly-owned subsidiary of General Electric Company
("GE"). The principal address of the Adviser is 3003 Summer Street,
Stamford, CT 06905.
GEIM and General Electric Investment Corporation ("GEIC"), an affiliated
company of GEIM wholly-owned by GE, collectively provide investment
management services to various institutional accounts with total assets, as
of December 31, 1996, in excess of $57 billion, including $910 million in
money market funds.
Pursuant to the Investment Advisory Agreement, the Adviser has agreed to
provide a continuous investment program for the Fund, including investment
research and management with respect to the assets of the Fund. GEIM is entitled
to receive management fees of 0.04% on the first $500 million of average net
assets of the Fund, 0.06% on the next $500 million and 0.08% on average net
assets in excess of $1 billion.
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ADMINISTRATOR AND BOOKKEEPING AND PRICING AGENT
ALPS serves as the Fund's Administrator. As Administrator, ALPS has agreed
to: assist in maintaining the Fund's office; furnish the Fund with clerical and
certain other services; compile data for and prepare notices and semi-annual
reports to the Securities and Exchange Commission; prepare filings with state
securities commissions; coordinate Federal and state tax returns; monitor the
Fund's expense accruals; monitor compliance with the Fund's investment policies
and limitations; and generally assist in the Fund's operations. ALPS is entitled
to receive a fee from the Fund for its administrative services computed daily
and payable monthly, at the annual rate of the greater of $90,000 or 0.18% of
average daily net assets of the Trust up to $500 million, 0.15% of average daily
net assets of the Trust in excess of $500 million up to $1 billion and 0.12% of
average daily net assets of the Trust in excess of $1 billion. ALPS has stated
that it will voluntarily waive a portion of the administration fees otherwise
payable by the Fund, as well as voluntarily assume a portion of the Fund
expenses, to the extent necessary for the Fund to maintain a total expense ratio
of not more than 0.20% of the average net assets of the Fund. ALPS reserves
the right to modify or terminate the fee waiver and assumption of expenses
at any time.
ALPS also serves as the Fund's Bookkeeping and Pricing Agent. In this
capacity, ALPS has agreed to maintain the financial accounts and records of the
Fund and to compute the net asset value and certain other financial information
relating to the Fund.
CUSTODIAN
State Street Bank and Trust Company of Connecticut, N.A., located at 750
Main Street, Suite 1114, Hartford, Connecticut 06103, serves as Custodian for
the Fund.
SUB-CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company, located at P.O. Box 1978, Boston,
Massachusetts 02015, serves as Sub-Custodian and Transfer Agent for the Fund.
HOW TO INVEST IN THE FUND
Shares in the Fund are distributed on a continuous basis by ALPS, the
Fund's Sponsor and Distributor. ALPS has its principal office at 370 Seventeenth
Street, Suite 2700, Denver, Colorado 80202 and may be reached at (800) 298-3442.
GENERAL PROCEDURES
You may purchase Fund shares through ALPS or the Fund's Transfer Agent.
Investors shall pay for their purchase of Fund shares by using the Federal
Reserve Wire System. Shares of the Fund may be purchased at the net asset value
next determined after an order is received and accepted. The Fund does not
impose any sales-related charges in connection with purchases of shares. The
Fund may discontinue offering its shares in any state without notice to
shareholders.
An initial investment in the Fund must be preceded or accompanied by a
completed, signed application. The application should be forwarded to:
Financial Investors Trust
P.O. Box 1978
Boston, Massachusetts 02015
Purchases by telephone can be made after an account has been established by
the Transfer Agent. The Trust reserves the right to reject any purchase order.
10
<PAGE>
PURCHASE PRICE
Your purchase of Fund shares will be effected at the net asset value next
determined after the Fund receives your purchase order in proper form and
payment in the form of Federal Funds. If your order is accompanied by Federal
Funds, or is converted into Federal Funds by 5:00 p.m. Eastern Time on a
Business Day or 12:00 noon on a Half Day, it will be executed on that day. If
the Fund receives your order and payment in the form of Federal Funds after 5:00
p.m. Eastern Time on a Business Day or after 12:00 noon Eastern Time on a Half
Day, your order will be processed the next Business Day. A "Business Day" is any
day on which the New York Federal Reserve and the New York Stock Exchange are
open for business.
TELEPHONE AND FACSIMILE PURCHASES
You can purchase Fund shares by telephone or facsimile once you have
established your account with the Fund and your telephone and facsimile
privileges have been approved by the Fund. In order to qualify for dividends on
the day of purchase, telephone or facsimile orders must be placed and Federal
Funds must be in the Fund's custody account by 5:00 p.m. Eastern Time on
Business Days. In order to qualify for dividends on the day of purchase on Half
Days, telephone or facsimile orders must be placed and Federal Funds must be in
the Fund's custody account by 12:00 noon that day. If Federal Funds arrive in
the Fund's custody account after the stated deadlines for both Business Days and
Half Days, the account will be credited the next Business Day.
MINIMUM INVESTMENT AND ACCOUNT BALANCES
The minimum initial investment in the Fund is $2,000,000 and additional
investments may be made in any amount. The minimum purchase requirements do not
apply to reinvested dividends. If an account balance falls below $200,000 due to
redemptions or exchanges, the account may be closed and the proceeds wired to
the bank account of record, or a check will be issued and sent to the party of
record. An investor will be given 30 days notice that the account will be closed
unless an additional investment is made to increase the account balance to the
$200,000 minimum.
STATEMENTS AND REPORTS
The Trust will send you a statement of your account after every transaction
that affects your share balance or your account registration. A statement with
tax information and an annual statement will be mailed to you by January 31 of
each year, and also will be filed with the IRS. At least twice a year, you will
receive financial statements in the form of Annual and Semi-Annual Reports of
the Fund.
HOW TO REDEEM SHARES
GENERAL PROCEDURES
Shareholders may redeem all or any part of the value of their account(s) on
any Business Day. You may redeem by mail, telephone or facsimile if you have
established that capability with the Fund. Redemption orders are processed at
the net asset value per share next determined after the Fund receives your
order. If the Fund receives your redemption order before 1:00 p.m. Eastern Time,
on a Business Day other than a Half Day, or by 11:00 a.m. Eastern Time on a Half
Day, the Fund will pay for your redeemed shares on that Business Day. Otherwise,
the Fund will pay for your redeemed shares on the next Business Day. The Fund
reserves the right to pay for redeemed shares within seven days after receiving
your redemption order if, in the judgment of the Adviser, an earlier payment
could adversely affect the Fund.
REGULAR REDEMPTION
You may redeem shares by sending a written request to Financial Investors
Trust, P.O. Box 1978, Boston, Massachusetts 02015. You must sign a redemption
request. (All individuals with authority on the account must co-sign.) Your
written redemption request must:
(i) state the number of shares to be redeemed;
(ii) identify your shareholder account number; and
(iii) provide your tax identification number.
11
<PAGE>
Each signature must be guaranteed by either a bank that is a member of the
FDIC, a trust company or a member firm of a national securities exchange or
other eligible guarantor institution. The Fund will not accept guarantees from
notaries public. Guarantees must be signed by an authorized person at the
guarantor institution, and the words "Signature Guaranteed" must appear with the
signature. A redemption request will not be deemed to be properly received until
the Fund receives all required documents in proper form.
When the Fund wires your redemption proceeds, the wire must be paid to the
same bank and account as designated on the Trust's Account Application or in
your written instructions to the Fund. If your bank is not a member of the
Federal Reserve System, your redemption proceeds will be wired to a
correspondent bank. Immediate notification by the correspondent bank to your
bank will be necessary to avoid a delay in crediting the funds to your bank
account.
TELEPHONE REDEMPTION
You may redeem shares by telephone. Shareholders must check the appropriate
box on the Account Application to activate the telephone redemption privilege.
Shares may be redeemed by telephoning the Fund at (800) 298-3442 and giving the
account name, account number, Personal Identification Number (PIN#), name of
Fund and amount of redemption. Proceeds from redemptions will be wired directly
to your account at a commercial bank within the United States.
In order to arrange for telephone redemptions after you have opened your
account, or to change the bank, account or address designated to receive
redemption proceeds, send a written request to the Fund at the address listed
under "Regular Redemption". The request must be signed by you and each other
shareholder of the account involved, with the signatures guaranteed as described
above. The Trust may modify or terminate procedures for redeeming shares by
telephone but will not materially change or terminate it without giving
shareholders 60 days' written notice.
During periods of substantial economic or market change, telephone
redemptions may be difficult to complete. If you are unable to contact the Fund
by telephone, you may redeem your shares by mail as described above under
"Regular Redemption".
By electing the telephone redemption option, you may be giving up a measure
of security which you might have had if you were to redeem in writing. The Trust
will employ reasonable procedures to confirm that instructions communicated by
telephone are genuine, such as recording telephone calls, providing written
confirmation of transactions, or requiring a form of personal identification
prior to acting on instructions received by telephone. To the extent the Trust
does not employ reasonable procedures, it and/or its service contractors may be
liable for any losses due to unauthorized or fraudulent instructions. Neither
the Trust, the Transfer Agent nor ALPS will be liable for following instructions
communicated by telephone that are reasonably believed to be genuine.
Accordingly, you, as a result of this policy, may bear the risk of fraudulent
telephone redemption transactions.
GENERAL REDEMPTION INFORMATION
Except for the presence of certain exceptional circumstances as described
in the Investment Company Act of 1940, the Fund will pay for redeemed shares by
mail within seven days after the Fund receives your order and supporting
documents in proper form (except as provided by the rules of the Securities and
Exchange Commission). Where payment is to be made by wire via the Federal
Reserve Wire System, the Fund will wire redemption proceeds on the same day
after receiving your redemption order, provided it is made before 1:00 P.M.
Eastern Time on business days and 11:00 a.m. Eastern Time on Half Days.
However, if any of the shares were purchased by check, the Fund may delay the
payment of redemption proceeds until the Transfer Agent is reasonably satisfied
that the check has been collected, which could take up to 15 days from the
purchase date.
There is no charge for share redemptions. The Fund may redeem an account
that has a balance of less than $200,000 if the shareholder does not increase
the amount of the account to at least $200,000 upon 30 days' notice.
Please direct questions concerning the proper form for redemption requests
to the Fund at (800) 298-3442.
12
<PAGE>
SHAREHOLDER SERVICES
EXCHANGE PRIVILEGE
You may sell your Fund shares and buy shares of the U.S. Treasury Money
Market Fund, another portfolio of the Trust, in exchange by written request.
There are no fees or commissions for exchanging Trust shares. If you have
checked the appropriate box on your Account Application, you may also initiate
exchanges by telephone. Exchange requests should be directed to the Fund at
(800) 298-3442.
Exchange transactions must be for amounts of $1,000 or more. Exchanges may
have tax consequences, so you should consult your tax adviser for further
information. The U.S. Treasury Money Market Fund must be registered for sale in
your state and must meet the investment criteria for your institution. See
"Suitability". Prior to requesting an exchange of Fund shares you should call
the Fund at (800) 298-3442. You should read the current prospectus for the U.S.
Treasury Money Market Fund before investing. Each Fund has its own minimum
balance requirements which must be adhered to.
During periods of significant economic or market change, telephone
exchanges may be difficult to complete. If you are unable to contact the Fund by
telephone, you may also mail the exchange request to the Fund at the address
listed under "Regular Redemption". Neither the Trust, the Transfer Agent nor
ALPS will be responsible for the authenticity of exchange instructions received
by telephone except as set forth under "How to Redeem Shares - Telephone
Redemption".
The Trust can provide you with information concerning certain limitations
on the exchange privilege, including those related to frequency. The Trust may
modify or terminate the exchange privilege but will not materially change or
terminate it without giving shareholders 60 days' written notice.
TAXES
While municipal investors are generally exempt from Federal income taxes,
each investor should independently ascertain its tax status. With respect to
investors who are not exempt from Federal income taxes, dividends derived from
net investment income and short term capital gains are taxable as ordinary
income distributions and are taxable when paid, whether investors receive
distributions in cash or reinvest them in additional shares, except that
distributions declared in December and paid in January are taxable as if paid on
December 31. The Fund will send to non-exempt investors an IRS Form 1099-DIV
showing their taxable distributions for the past calendar year.
The Fund has qualified and intends to continue to qualify as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended (the
"Code"). This qualification will relieve the Fund of liability for Federal
income taxes, to the extent its earnings are distributed in accordance with the
Code.
The information above is only a summary of some of the federal tax
consequences generally affecting the Fund and its shareholders, and no attempt
has been made to discuss individual tax consequences. In addition to Federal
taxes, investors may be subject to state or local taxes on their investment.
Investors should consult their tax advisor to determine whether the Fund is
suitable to their particular tax situation.
When investors sign their account application, they will be asked to
certify that their social security or taxpayer identification number is correct
and that they are not subject to 31% backup withholding for failing to report
income to the IRS. If investors violate IRS regulations, the IRS can require the
Fund to withhold 31% of taxable distributions and redemptions.
The Fund declares dividends from net investment income daily and pays such
dividends monthly. The Fund intends to distribute substantially all of its net
investment income and capital gains, if any, to shareholders within each
calendar year as well as on a fiscal year basis.
Since all of the Fund's net investment income is expected to be derived
from earned interest, it is anticipated that all dividends paid by the Fund will
be taxable as ordinary income to those shareholders who are not exempt from
Federal income taxes, and that no part of any distribution will be eligible for
the dividends received deduction for corporations.
13
<PAGE>
OTHER INFORMATION
CAPITALIZATION
The Trust was organized as a Delaware Business Trust on November 30, 1993
and consists of two separate portfolios or series, one of which is offered in
this Prospectus. The Board of Trustees may establish additional series in the
future. The capitalization of the Trust consists solely of an unlimited number
of shares of beneficial interest with a par value of $0.001 each. When issued,
shares of the Trust are fully paid and non-assessable.
Under Delaware law, shareholders could, under certain circumstances, be
held personally liable for the obligations of a series of the Trust but only to
the extent of the shareholder's investment in such series. However, the Trust
Instrument disclaims liability of the shareholders, Trustees or Officers of the
Trust for acts or obligations of the Trust, which are binding only on the assets
and property of each series of the Trust and requires that notice of the
disclaimer be given in each contract or obligations entered into or executed by
the Trust or the Trustees. The risk of a shareholder incurring financial loss on
account of shareholder liability is limited to circumstances in which the Trust
itself would be unable to meet its obligations and should be considered remote
and is limited to the amount of the shareholder's investment in the Fund.
VOTING
Shareholders have the right to vote in the election of Trustees and on any
and all matters on which, by law or under the provisions of the Trust
Instrument, they may be entitled to vote. The Trust is not required to hold
regular annual meetings of the Fund's shareholders and does not intend to do so.
The Fund may vote separately on items which affect only the Fund.
The Trust Instrument provides that the holders of not less than two-thirds
of the outstanding shares of the Trust may remove a person serving as Trustee
either by declaration in writing or at a meeting called for such purpose. The
Trustees are required to call a meeting of shareholders for the purpose of
considering the removal of a person serving as Trustee if requested in writing
to do so by the holders of not less than 10% of the outstanding shares of the
Trust or the Fund.
Shares entitle their holders to one vote per share (with proportionate
voting for fractional shares). As used in this Prospectus, the phrase "vote of a
majority of the outstanding shares" of the Fund (or the Trust) means the vote of
the lesser of: (1) 67% of the shares of the Fund (or the Trust) present at a
meeting if the holders of more than 50% of the outstanding shares are present in
person or by proxy: or (2) more than 50% of the outstanding shares of the Fund.
PERFORMANCE INFORMATION
From time to time, the Fund may quote its "yield" and "effective yield" in
advertisements or in communications to shareholders. BOTH YIELD FIGURES ARE
BASED ON HISTORICAL EARNINGS AND ARE NOT INTENDED TO INDICATE FUTURE
PERFORMANCE. The "yield" quoted in advertisements refers to the income generated
by an investment in the Fund over a specified seven-day period. This income is
then "annualized". That is, the amount of income generated by the investment
during that week is assumed to be generated each week over a 52-week period and
is shown as a percentage of the investment. The "effective yield" is calculated
similarly but, when annualized, the income earned by an investment in the Fund
is assumed to be reinvested. The "effective yield" will be slightly higher than
the "yield" because of the compounding effect of the assumed reinvestment.
Additionally, the yield of the Fund may be compared in advertisements or in
reports to shareholders to those of other mutual funds with similar investment
objectives and to other relevant indices or to rankings prepared by independent
services or other financial or industry publications that monitor the
performance of mutual funds. For example, the Funds' yields may be compared to
the IBC/DONOGHUE'S MONEY FUND AVERAGE, which is an average complied by
IBC/DONOGHUE'S MONEY FUND REPORT. In addition, yields may be compared to the
average yields reported by the BANK RATE MONITOR for money market deposit
accounts offered by the 50 leading banks and thrift institutions in the top five
standard metropolitan statistical areas.
Yield data as reported in national financial publications, including MONEY
MAGAZINE, FORBES, BARRON'S, THE WALL STREET JOURNAL and THE NEW YORK TIMES, or
in publications of a local or regional nature, may also be used in comparing the
yields of the Fund.
14
<PAGE>
Since yields fluctuate, you cannot necessarily use yield data to compare an
investment in the Funds' shares with bank deposits, savings accounts and similar
investment alternatives which often provide an agreed or guaranteed fixed yield
for a stated period of time. Yield is generally a function of the kind and
quality of the instruments held in a portfolio, portfolio maturity, operating
expenses and market conditions. Any fees charged by service institutions
directly to their customer accounts in connection with investments in shares of
the Fund will not be included in the Fund's calculations of yield.
INQUIRIES
Please write or call the Trust at the address or telephone number listed on
the cover of this Prospectus with any inquiries you may have regarding the Fund
or any other investment portfolios of the Trust that are not offered by this
Prospectus.
15
<PAGE>
INVESTMENT ADVISER
GE Investment Management Incorporated
3003 Summer Street
P.O.Box 7900
Stamford, Connecticut 06905
DISTRIBUTOR & ADMINISTRATOR
ALPS Mutual Funds Services, Inc.
370 Seventeenth Street
Suite 2700
Denver, Colorado 80202
LEGAL COUNSEL
Baker & McKenzie
805 Third Avenue
New York, New York 10022
INDEPENDENT AUDITORS
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
State Street Bank and Trust
Company of Connecticut N.A.
750 Main Street
Suite 1114
Hartford, Connecticut 06103
SUB-CUSTODIAN & TRANSFER AGENT
State Street Bank & Trust Company
P.O. Box 1978
Boston, Massachusetts 02105
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS NOT CONTAINED IN THIS PROSPECTUS, OR IN THE FUND'S STATEMENT
OF ADDITIONAL INFORMATION INCORPORATED HEREIN BY REFERENCE, IN CONNECTION
WITH THE OFFERING MADE BY THIS PROSPECTUS AND, IF GIVEN OR MADE, SUCH
INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN
AUTHORIZED BY THE TRUST OR ITS DISTRIBUTOR. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFERING BY THE TRUST OR BY THE DISTRIBUTOR IN ANY JURISDICTION
IN WHICH SUCH OFFERING MAY NOT LAWFULLY BE MADE.
16
<PAGE>
FINANCIAL INVESTORS TRUST MARCH 31, 1997
370 Seventeenth Street
Suite 2700
Denver, Colorado 80202
For additional information, call (800) 298-3442
U.S. TREASURY MONEY MARKET FUND
This Prospectus describes the U.S. Treasury Money Market Fund (the "Fund"),
a diversified no-load money market fund offered to municipal and other
institutional investors by Financial Investors Trust (the "Trust") (formerly
Institutional Investors Public Trust), a Delaware business trust. Shares of the
Fund are sold without the imposition of Rule 12b-1 fees or other sales-related
charges.
The Fund seeks to provide investors with as high a level of current income
as is consistent with the preservation of capital and liquidity by investing
exclusively in U.S. Treasury bills, notes and other direct obligations of the
U.S. Treasury and repurchase agreements collateralized to 102% by these
obligations. The Fund is required to maintain a dollar-weighted average
portfolio maturity of 90 days or less and seeks to maintain its net asset value
per share at $1.00 for purposes of purchases and redemptions.
Shares of the Fund are sold primarily to municipal investors, including
municipalities, counties and state agencies, as well as other institutional
investors such as broker/dealers, corporations, investment advisers, credit
unions, banks, insurance companies and other financial institutions.
The Fund is sponsored and distributed by ALPS Mutual Funds Services, Inc.
("ALPS" or the "Administrator" or "Distributor") and is advised by GE Investment
Management Incorporated ("GEIM" or the "Adviser").
SHARES IN THE FUND ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED OR
ENDORSED BY, ANY BANK, AND ARE NOT INSURED BY THE FDIC, THE FEDERAL RESERVE
BOARD, OR ANY OTHER AGENCY OR INSURER AND THEY MAY INVOLVE INVESTMENT RISKS
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
This Prospectus sets forth concisely the information you should consider
before investing in the Fund. Please read this Prospectus and keep it for
future reference. Additional information about the Fund is contained in a
Statement of Additional Information (the "Statement of Additional Information")
which has been filed with the Securities and Exchange Commission and is
available upon request without charge by writing to or calling the Trust at the
address and telephone number listed above. The Statement of Additional
Information bears the same date as this Prospectus and is incorporated herein by
reference.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED
UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE. AN INVESTMENT IN THE FUND IS NEITHER INSURED
NOR GUARANTEED BY THE U.S. GOVERNMENT AND THERE CAN BE NO ASSURANCE THAT THE
FUND WILL BE ABLE TO MAINTAIN A STABLE NET ASSET VALUE OF $1.00 PER SHARE.
1
<PAGE>
TABLE OF CONTENTS PAGE
----
EXPENSE SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
FINANCIAL HIGHLIGHTS . . . . . . . . . . . . . . . . . . . . . . . . . . 4
FUND OPERATIONS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
SUITABILITY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
MANAGEMENT OF THE FUND . . . . . . . . . . . . . . . . . . . . . . . . . 8
HOW TO INVEST IN THE FUND. . . . . . . . . . . . . . . . . . . . . . . . 9
HOW TO REDEEM SHARES . . . . . . . . . . . . . . . . . . . . . . . . . .10
SHAREHOLDER SERVICES . . . . . . . . . . . . . . . . . . . . . . . . . .12
TAXES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12
OTHER INFORMATION. . . . . . . . . . . . . . . . . . . . . . . . . . . .13
2
<PAGE>
EXPENSE SUMMARY
The summary below shows shareholder transaction expenses imposed by the
Fund and annual Fund operating expenses based on the actual operating expenses
for the fiscal year ended April 30, 1996, adjusted to reflect current fees of
the Fund. A hypothetical example based on the summary is also shown.
"Shareholder Transaction Expenses" are charges you pay when buying or selling
shares of the Fund whereas "Annual Fund Operating Expenses" are paid out of the
Fund's assets and include fees for portfolio management, Fund administration and
other services.
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load on
Purchases of Fund Shares None
Deferred Sales Load None
Redemption Fees None
Exchange Fee None
ANNUAL FUND OPERATING EXPENSES (AS A PERCENTAGE OF AVERAGE NET ASSETS)
The Management Fees described in the table below are based upon the average
daily net assets of the Fund for the fiscal year ended April 30, 1996.
Management Fees may be higher to the extent the Fund's average net assets
exceed $500 million. Please read the following Annual Fund Operating
Expenses summary and accompanying footnotes carefully before investing.
Management Fees (1) 0.05%
12b-1 Fees None
All Other Expenses(2)
(Net of Fee Waivers and
Reimbursements) 0.25%
----
Total Fund Operating Expenses
(Net of Fee Waivers and
Reimbursements)(2) 0.30%
----
----
(1) The Fund is obligated to pay management fees to GEIM at the maximum
annual rate of 0.15% of the Fund's average net assets. Under its Investment
Advisory Agreement with the Fund, GEIM is entitled to receive management fees of
0.05% on the first $500 million of average net assets of the Fund, 0.075% on the
next $500 million, 0.10% on average net assets in excess of $1 billion but not
exceeding $1.5 billion, and 0.15% on average net assets in excess of $1.5
billion.
(2) The amount for "All Other Expenses" includes administration fees
payable to the Administrator calculated daily and payable monthly, at an
annual rate of the greater of $750,000 or 0.18% of average daily net assets
of the Trust up to $500 million, 0.15% of average daily net assets of the
Trust in excess of $500 million up to $1 billion and 0.12% of average daily
net assets of the Trust in excess of $1 billion. The Administrator has
stated that it will voluntarily waive a portion of the administration fees
otherwise payable by the Fund, as well as voluntarily assume a portion of
Fund expenses to the extent necessary for the Fund to maintain a total
expense ratio of not more than 0.30% of the average net assets of the Fund.
The Trust will consider whether to maintain the current total expense ratio
at 0.30% of average net assets or whether such ratio should be increased. It
is not currently anticipated that this ratio would increase by more than
0.05% to a total expense ratio of not more than 0.35% of average net assets.
Without this voluntary fee waiver and assumption of expenses, and assuming
payment of the maximum management fee, All Other Expenses and Total Fund
Operating Expenses would be 0.36% and 0.51%, respectively, of the average net
assets of the Fund. The Administrator reserves the right to modify or
terminate its fee waiver and assumption of expenses at any time.
THE FOLLOWING EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF FUTURE
EXPENSES. THE EXPENSES SET FORTH ABOVE AND THE EXAMPLE SET FORTH BELOW REFLECT
THE NON-IMPOSITION OF CERTAIN FEES AND EXPENSES. THE ACTUAL EXPENSES MAY BE
GREATER OR LESSER THAN THOSE SHOWN.
EXAMPLE:
Based upon the above summary of expenses and assuming a 5% annual return,
redemption at the end of each time period and the reinvestment of all dividends
and distributions, you would pay the following expenses on a $100,000 investment
in the Fund:
1 YEAR $308
3 YEARS $967
5 YEARS $1,689
10 YEARS $3,813
3
<PAGE>
OTHER INFORMATION
The Expense Summary and Example are intended to help you understand the
expenses you would bear either directly (as with the Shareholder Transaction
Expenses) or indirectly (as with the Annual Fund Operating Expenses) as a Fund
shareholder. As stated above, the Fund does not impose any sales-related
charges in connection with purchases of its shares, although certain service
institutions may charge their clients fees in connection with purchases and
sales for the accounts of their clients. These fees are in addition to the
expenses shown in the Expense Summary and Example. For a more complete
description of the Fund's operating expenses, see "Management of the Fund" in
this Prospectus and the Statement of Additional Information.
FINANCIAL HIGHLIGHTS
The financial highlights have been derived from the Fund's financial
statements for the fiscal period ended April 30, 1996, which have been
audited by Deloitte & Touche LLP, independent auditors, whose report on the
financial statement of the Fund is included in the Statement of Additional
Information. The financial highlights also reflect the operations of the Fund
while the Fund's investment adviser was FGIC Advisors, Inc. GEIM was approved
as the Fund's investment adviser at a Special Meeting of the shareholders of
the Fund on March 21, 1997. You should read the financial highlights with the
financial statements and related notes included in the Statement of
Additional Information. Further information about the performance of the
Fund is available in the annual report to shareholders. You may obtain both
the Statement of Additional Information and the annual report to shareholders
free of charge by calling or writing to the Trust at the telephone or address
listed on the first page.
FINANCIAL HIGHLIGHTS
U.S. TREASURY MONEY MARKET FUND
Selected data for a share of beneficial interest
outstanding throughout the periods indicated:
For the For the
Year Ended Period Ended
April 30, April 30,
1996 1995(1)
------------ ------------
Net asset value - beginning of period $1.00 $1.00
- --------------------------------------------------------------------------------
INCOME FROM INVESTMENT OPERATIONS
Net investment income 0.05 0.04
- --------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends from net investment income (0.05) (0.04)
- --------------------------------------------------------------------------------
Net asset value - end of period $1.00 $1.00
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Total Return 5.44% 4.71%(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $316,364 $109,055
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Ratio of expenses to average net assets 0.30% 0.50%(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Ratio of net investment income to
average net assets 5.36% 4.87%(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Ratio of expenses to average net assets
without fee waivers 0.71% 1.32%(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Ratio of net investment income to average
net assets without fee waivers 4.95% 4.05%(2)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
(1) Operations commenced on May 25, 1994.
(2) Annualized.
4
<PAGE>
FUND OPERATIONS
INVESTMENT OBJECTIVE
The Adviser will use its best efforts to achieve the investment objective
of the Fund as described below, although the achievement of the investment
objective, of course, cannot be assured. You should not consider the Fund, by
itself, to be a complete investment program. The Fund is a diversified,
open-end management investment company.
The Fund's investment objective is to seek as high a level of current
income as is consistent with preservation of capital and liquidity. The
securities held by the Fund have remaining maturities of thirteen months or
less. The average weighted maturity of the securities held by the Fund will not
exceed 90 days. The Fund's investment objective may not be changed without
approval of a majority of the Fund's outstanding shares.
In seeking to achieve its investment objective, the Fund invests
exclusively in direct obligations of the U.S. Treasury, such as Treasury bills
and notes and repurchase agreements with respect to such obligations. The Board
of Trustees shall make a determination that all portfolio securities purchased
by the Fund present minimal credit risk.
Securities issued by the U.S. Treasury have historically involved little
risk of default. However, due to fluctuations in interest rates, the market
value of such securities may vary during the period a shareholder owns shares of
the Fund. The Fund will seek to maintain a stable Net Asset Value at $1.00 per
share. There is no assurance that the Fund will meet its investment objective.
Neither the United States, nor any agency or instrumentality thereof, has
guaranteed, sponsored or approved the Fund or its shares.
INVESTMENT POLICIES
Securities held by the Fund may be subject to repurchase agreements. A
repurchase agreement is a transaction in which the Fund agrees to purchase
portfolio securities 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. Although the securities subject to a repurchase
agreement might bear maturities exceeding thirteen months, the Fund will only
enter into repurchase agreements with maturities in excess of seven days in
cases where a liquidity feature, such as a put option, permits the Fund to
liquidate or terminate the repurchase agreement within seven days. The seller
under a repurchase agreement will be required to maintain the value of the
securities subject to the repurchase agreement at not less than 102% of the
principal value of the repurchase agreement, including any accrued interest
earned on the repurchase agreement, and that the Fund's custodian or
subcustodian will take possession of such collateral. The seller will
collateralize the repurchase agreement with U.S. Treasury obligations and other
direct obligations of the U.S. Government. Default by or bankruptcy of the
seller may, however, expose the Fund to possible loss because of adverse market
action or delay or transaction costs in connection with the disposition of the
underlying obligations. The Fund may enter into agreements with a single
counterparty that constitutes more than 5% of Fund assets.
The Fund may, in certain cases, calculate the maturity of a security with a
floating or variable rate or a demand feature in the manner specified in Rule
2a-7 under the Investment Company Act, with the effect that the maturity is
deemed to be shorter than its final date.
The Fund intends to purchase U.S. Treasury securities at auction from the
Federal Reserve.
Subject to the investment restrictions described below, the Fund may, from
time to time, lend securities from its portfolio to brokers, dealers and
financial institutions and receive collateral in cash or U.S. Treasury
obligations which will be maintained at all times in an amount equal to at least
100% of the current market value of the loaned securities. The Fund will be
entitled to the interest paid upon investment of the cash collateral in its
permitted investments or to the payment of a premium or fee for the loan. The
Fund may at any time call such loans and obtain the securities loaned. However,
if the borrower of the securities should default on its obligation to return the
securities borrowed, the value of the collateral may be insufficient to permit
the Fund to reestablish its position by making a comparable investment due to
changes in market conditions. The Fund may pay reasonable fees to persons
unaffiliated with the Fund in connection with arranging such loans. The Fund
will only engage in securities lending transactions with broker-dealers
registered with the Securities and Exchange Commission, or with federally
supervised banks or savings and loan associations. Currently, the Fund does not
intend to lend portfolio securities.
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INVESTMENT RESTRICTIONS
The Fund is subject to a number of investment restrictions which reflect
self-imposed standards as well as federal and state regulatory limitations.
These limitations are designed to minimize certain risks associated with
investing in specified types of securities or engaging in certain transactions.
The investment restrictions may be changed only by a vote of a majority of the
Fund's outstanding shares.
The Fund may not:
1) Purchase securities other than direct obligations of the U.S. Treasury,
some of which may be subject to repurchase agreements, and repurchase agreements
collateralized to 102% by direct U.S. Treasury obligations.
2) Make loans, except that the Fund may purchase or hold debt instruments,
lend portfolio securities, and enter into repurchase agreements in accordance
with its investment objective and policies.
3) Borrow money or issue senior securities, except that the Fund may borrow
from banks for temporary purposes in amounts up to 10% of the value of its total
assets at the time of such borrowing; or mortgage, pledge or hypothecate any
assets, except in connection with any such borrowings and in amounts not in
excess of the dollar amounts borrowed or 10% of the value of the Fund's assets
at the time of borrowing. The Fund may not purchase securities while its
borrowings are outstanding.
4) With respect to more than 10% of Fund assets, enter into repurchase
agreements providing for settlement more than seven days after notice without a
liquidity feature such as a put option, permitting the Fund to liquidate or
terminate the repurchase agreement withing seven days.
5) Purchase municipal bonds issued by an issuer any of whose outstanding
bonds are insured by Financial Guarantee Insurance Corporation ("FGIC").
6) Purchase collateralized mortgage obligations, inverse floaters or any
other securities commonly known as "derivatives".
7) Purchase illiquid securities, except for fully collateralized
repurchase agreements that, because of term limitations, are deemed to be
illiquid.
8) Hold securities with remaining maturities exceeding thirteen months.
9) Purchase reverse repurchase agreements.
DETERMINATION OF NET ASSET VALUE
The value of the Fund's shares is referred to as "net asset value". Net
asset value per share for purposes of pricing purchases and redemptions is
calculated by adding the value of all securities and other assets belonging to
the Fund, subtracting its liabilities, and dividing the result by the number of
the Fund's outstanding shares. Net asset value is determined as of 5:00 p.m.
Eastern Time on each day the New York Federal Reserve and the New York Stock
Exchange are open for business and as of 12:00 noon Eastern Time on any day the
Public Securities Association ("PSA") recommends an early close (each such day
referred to as a "Half Day"). Currently, either the New York Federal Reserve or
New York Stock Exchange is closed on New Years Day, Martin Luther King Jr. Day,
Presidents' Day, Good Friday, Memorial Day, Independence Day, Labor Day,
Columbus Day, Veterans' Day, Thanksgiving Day and Christmas Day. An early close
is currently recommended by the PSA on the business day before each that either
the New York Federal Reserve or the New York Stock Exchange observes a holiday,
except for Good Friday. Additionally, the PSA recommends an early close on the
business day following Independence Day and Thanksgiving Day.
The Board of Trustees has established procedures designed to maintain a
stable net asset value of $1.00 per share, to the extent reasonably possible.
The Board of Trustees has approved and adopted procedures under Rule 2a-7 under
the Investment Company Act of 1940, as amended, which was enacted by the SEC
with the intent of stabilizing money market funds at $1.00 per share. Under the
guidelines of Rule 2a-7, the Fund uses the amortized cost method to value its
portfolio securities. The amortized cost method involves valuing a security at
its cost and amortizing any discount or premium over the period of maturity,
regardless of the impact of fluctuating interest rates on the market value of
the security. Rule 2a-7 also provides that the Fund must also do a "mark-to-
market" analysis, where it is
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determined the degree to which any variations may exist between the amortized
pricing method and the actual market price of the securities in the Fund. In
the event the Board determines that a deviation exists which may result in
material dilution or other unfair results to investors or existing
shareholders, the Board will take such corrective action as it regards as
necessary and appropriate, including the sale of portfolio instruments prior
to maturity to realize capital gains or losses or to shorten average
portfolio maturity.
Rule 2a-7 also requires the Fund to maintain a dollar weighted average
portfolio maturity of 90 days or less, purchase securities having remaining
maturities of 13 months or less and invest only in securities determined by the
Trust's Board of Trustees to be "eligible securities" and that present minimal
credit risks. The Board of Trustees or its delegate reviews the portfolio
securities monthly and at regularly scheduled quarterly Board of Trustees
meetings. There can be no assurance that at all times the $1.00 price per share
can be maintained. See the Statement of Additional Information for more
details.
DIVIDENDS AND DISTRIBUTIONS
The Fund's net income is declared daily as a dividend at the close of
business on the day of declaration. Your shares begin earning dividends on the
day you purchase them, and continue to earn dividends through and including the
day before you redeem them. See "How to Invest in the Fund". The Fund pays
dividends not later than five business days after the end of each month in the
form of additional shares of the Fund, unless you elect prior to the date of
distribution to receive payment in cash. Reinvested dividends and distributions
receive the same tax treatment as those paid in cash. If you redeem all of your
shares in the Fund, the Fund will pay your dividends in cash not later than five
business days after the redemption.
SUITABILITY
The Fund is designed as an economical and convenient professionally managed
investment vehicle for institutional investors and high net worth individuals
with cash balances or cash reserves who seek as high a level of current income
as is consistent with the preservation of capital and liquidity. The Fund is
designed to meet the specific cash management needs of institutional investors
such as Municipal Investors, broker/dealers, corporations, investment advisers,
credit unions, banks, insurance companies and other institutional investors.
"Municipal Investors" include any State, county, municipality, school district,
special district or political subdivision in the United States. The Fund may
also be suitable for institutions seeking an investment vehicle for daily
cash sweep or liquidity purposes on behalf of their clients.
Legislation in each state sets forth guidelines and limitations with
respect to investments by Municipal Investors located within the state. In
addition, Municipal Investors may be subject to local laws or have their own
guidelines and policies prescribing acceptable investments for cash management
purposes. Each Municipal Investor planning to invest in the Fund must
independently verify that the Fund meets all of the criteria of investment
policies and guidelines applicable to such Municipal Investor.
Future statutory or regulatory changes, as well as future judicial or
administrative decisions and interpretations of present and future statutes and
regulations could prevent a Municipal Investor from continuing its investment in
the Fund. Each Municipal Investor should therefore remain aware of any changes
in the applicable regulation of permitted investments.
The Fund offers the advantages of purchasing power efficiencies and
diversification of risk. Generally, in purchasing debt instruments from
dealers, the percentage difference between the bid and asked price tends to
decrease as the size of the transaction increases. The Fund also offers
investors the opportunity to participate in a portfolio of U.S. Treasury
obligations which is more diversified in terms of issuers and maturities than a
portfolio a single investor may otherwise be able to invest in.
Investment in the Fund relieves the investor of money management and
administrative burdens usually associated with the direct purchase and sale of
U.S. Treasury debt instruments. This includes the selection of the portfolio
investments; surveying the market for the best terms at which to buy and sell;
scheduling and monitoring maturities and reinvestments; receipt, delivery and
safekeeping of securities; and portfolio recordkeeping.
The Fund qualifies as an eligible investment for federally chartered credit
unions pursuant to Sections 107 of the Federal Credit Union Act and Part 703 of
the National Credit Union Administration Rules and Regulations. The Fund
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intends to review changes in the applicable laws, rules and regulations
governing eligible investments for federally chartered credit unions, and
take such action as may be necessary so that the investments of the Fund
qualify as eligible investments under the Federal Credit Union Act and the
regulations thereunder. Shares of the Fund, however, may or may not qualify
as eligible investments for particular state chartered credit unions. The
Fund encourages each state chartered credit union to consult qualified legal
counsel concerning whether the Fund is a permissible investment under the
laws applicable to it.
MANAGEMENT OF THE FUND
INVESTMENT ADVISER
At a meeting held on January 20, 1997, the Trustees approved a new
Investment Advisory Agreement with GEIM. The new Investment Advisory
Agreement was submitted to shareholders for their consideration pursuant to
a Proxy Statement dated March 3, 1997 and subsequently approved by a
majority of the shareholders at a Special Meeting held on March 21, 1997.
The Adviser is a wholly-owned subsidiary of General Electric Company
("GE"). The principal address of the Adviser is 3003 Summer Street,
Stamford, CT 06905.
GEIM and General Electric Investment Corporation ("GEIC"), an affiliated
company of GEIM wholly-owned by GE, collectively provide investment
management services to various institutional accounts with total assets, as
of December 31, 1996, in excess of $57 billion, including $910 million in
money market funds.
Pursuant to the Investment Advisory Agreement, the Adviser has agreed to
provide a continuous investment program for the Fund, including investment
research and management with respect to the assets of the Fund. GEIM is entitled
to receive management fees of 0.05% on the first $500 million of the average net
assets of the Fund, 0.075% on the next $500 million, 0.10% in excess of $1
billion but not exceeding $1.5 billion and 0.15% on average net assets in excess
of $1.5 billion.
ADMINISTRATOR AND BOOKKEEPING AND PRICING AGENT
ALPS serves as the Fund's Administrator. As Administrator, ALPS has agreed
to: assist in maintaining the Fund's office; furnish the Fund with clerical and
certain other services; compile data for and prepare notices and semi-annual
reports to the Securities and Exchange Commission; prepare filings with state
securities commissions; coordinate Federal and state tax returns; monitor the
Fund's expense accruals; monitor compliance with the Fund's investment policies
and limitations; and generally assist in the Fund's operations. ALPS is
entitled to receive a fee from the Fund for its administrative services computed
daily and payable monthly, at the annual rate of the greater of $750,000 or
0.18% of average daily net assets of the Trust up to $500 million, 0.15% of
average daily net assets of the Trust in excess of $500 million up to $1 billion
and 0.12% of average daily net assets of the Trust in excess of $1 billion. ALPS
has stated that it will voluntarily waive a portion of the administration fees
otherwise payable by the Fund, as well as voluntarily assume a portion of the
Fund expenses, to the extent necessary for the Fund to maintain a total expense
ratio of not more than 0.30% of the average net assets of the Fund. The Trust
will consider whether to maintain the current total expense ratio at 0.30% of
average net assets or whether such ratio should be increased. It is not
currently anticipated that this ratio would increase by more than 0.05% to a
total expense ratio of not more than 0.35% of average net assets. ALPS
reserves the right to modify or terminate its fee waiver and assumption of
expenses at any time.
ALPS also serves as the Fund's Bookkeeping and Pricing Agent. In this
capacity, ALPS has agreed to maintain the financial accounts and records of the
Fund and to compute the net asset value and certain other financial information
relating to the Fund.
CUSTODIAN
State Street Bank and Trust Company of Connecticut, N.A., located at 750
Main Street, Suite 1114, Hartford, Connecticut 06103, serves as Custodian for
the Fund.
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SUB-CUSTODIAN AND TRANSFER AGENT
State Street Bank and Trust Company, located at P.O. Box 1978, Boston,
Massachusetts 02015, serves as Sub-Custodian and Transfer Agent for the Fund.
HOW TO INVEST IN THE FUND
Shares in the Fund are distributed on a continuous basis by ALPS, the
Fund's Sponsor and Distributor. ALPS has its principal office at 370
Seventeenth Street, Suite 2700, Denver, Colorado 80202 and may be reached at
(800) 298-3442.
GENERAL PROCEDURES
You may purchase Fund shares through ALPS or the Fund's Transfer Agent.
You may pay for your purchase of Fund shares by check, money order or by using
the Federal Reserve Wire System. The check or money order must be payable in
U.S. dollars to the Fund and be drawn on a bank located within the United
States. Shares of the Fund may be purchased at the net asset value next
determined after an order is received and accepted. The Fund does not impose
any sales-related charges in connection with purchases of shares. The Fund may
discontinue offering its shares in any state without notice to shareholders.
An initial investment in the Fund must be preceded or accompanied by a
completed, signed application. The application should be forwarded to:
Financial Investors Trust
P.O. Box 1978,
Boston, Massachusetts 02015
Purchases by telephone can be made after an account has been established by
the Transfer Agent. The Trust reserves the right to reject any purchase order.
PURCHASE PRICE
Your purchase of Fund shares will be effected at the net asset value next
determined after the Fund receives your purchase order in proper form and
payment in the form of Federal Funds. If you pay by check, Federal Funds will
generally be available to the Fund two Business Days after the Fund receives
your check. If your order is accompanied by Federal Funds, or is converted into
Federal Funds by 5:00 p.m. Eastern Time on a Business Day or 12:00 noon Eastern
Time on a Half Day, it will be executed on that day. If the Fund receives your
order and payment in the form of Federal Funds after 5:00 p.m. Eastern Time on a
Business Day or after 12:00 noon Eastern Time on a Half Day, your order will be
processed the next Business Day. A "Business Day" is any day on which the New
York Federal Reserve and the New York Stock Exchange are open for business.
TELEPHONE AND FACSIMILE PURCHASES
You can purchase Fund shares by telephone or facsimile once you have
established your account with the Fund and your telephone and facsimile
privileges have been approved by the Fund. In order to qualify for dividends on
the day of purchase, telephone or facsimile orders must be placed and Federal
Funds must be in the Fund's custody account by 5:00 p.m. Eastern Time on
Business Days. In order to qualify for dividends on the day of purchase on Half
Days, telephone or facsimile orders must be placed and Federal Funds must be in
the Fund's custody account by 12:00 noon that day. If Federal Funds arrive in
the Fund's custody account after the stated deadlines for both Business Days and
Half Days, the account will be credited the next Business Day.
MINIMUM INVESTMENT AND ACCOUNT BALANCES
The minimum initial investment in the Fund is $100,000 and additional
investments may be made in any amount. The minimum purchase requirements do not
apply to reinvested dividends. If an account balance falls below $25,000 due to
redemptions or exchanges, the account may be closed and the proceeds wired to
the bank account of record, or a check will be issued and sent to the party of
record. An investor will be given 30 days notice that the account will be closed
unless an additional investment is made to increase the account balance to the
$25,000 minimum.
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STATEMENTS AND REPORTS
The Trust will send you a statement of your account after every transaction
that affects your share balance or your account registration. A statement with
tax information and an annual statement will be mailed to you by January 31 of
each year, and also will be filed with the IRS. At least twice a year, you will
receive financial statements in the form of Annual and Semi-Annual Reports of
the Fund.
HOW TO REDEEM SHARES
GENERAL PROCEDURES
Shareholders may redeem all or any part of the value of their account(s) on
any Business Day. You may redeem by mail, check, telephone or facsimile if you
have established that capability with the Fund. Redemption orders are processed
at the net asset value per share next determined after the Fund receives your
order. If the Fund receives your redemption order before 1:00 P.M. Eastern
Time, on a Business Day other than a Half Day, or by 11:00 A.M. Eastern Time on
a Half Day, the Fund will pay for your redeemed shares on that day. Otherwise,
the Fund will pay for your redeemed shares on the next Business Day. The Fund
reserves the right to pay for redeemed shares within seven days after receiving
your redemption order if, in the judgment of the Adviser, an earlier payment
could adversely affect the Fund.
REGULAR REDEMPTION
You may redeem shares by sending a written request to Financial Investors
Trust, P.O. Box 1978, Boston, Massachusetts 02015. You must sign a redemption
request. (All individuals with authority on the account must co-sign.) Your
written redemption request must:
(i) state the number of shares to be redeemed;
(ii) identify your shareholder account number; and
(iii) provide your tax identification number.
Each signature must be guaranteed by either a bank that is a member of the
FDIC, a trust company or a member firm of a national securities exchange or
other eligible guarantor institution. The Fund will not accept guarantees from
notaries public. Guarantees must be signed by an authorized person at the
guarantor institution, and the words "Signature Guaranteed" must appear with the
signature. A redemption request will not be deemed to be properly received until
the Fund receives all required documents in proper form.
When the Fund wires your redemption proceeds, the wire must be paid to the
same bank and account as designated on the Trust's Account Application or in
your written instructions to the Fund. If your bank is not a member of the
Federal Reserve System, your redemption proceeds will be wired to a
correspondent bank. Immediate notification by the correspondent bank to your
bank will be necessary to avoid a delay in crediting the funds to your bank
account.
TELEPHONE REDEMPTION
You may redeem shares by telephone. Shareholders must check the
appropriate box on the Account Application to activate the telephone redemption
privilege. Shares may be redeemed by telephoning the Fund at (800) 298-3442 and
giving the account name, account number, Personal Identification Number (PIN#),
name of Fund and amount of redemption. Proceeds from redemptions may be wired
or mailed directly to your account at a commercial bank within the United States
or mailed to you at your address on the Fund's books.
In order to arrange for telephone redemptions after you have opened your
account, or to change the bank account or address designated to receive
redemption proceeds, send a written request to the Fund at the address listed
under "Regular Redemption". The request must be signed by you and each other
shareholder of the account involved, with the signatures guaranteed as described
above. The Trust may modify or terminate procedures for redeeming shares by
telephone but will not materially change or terminate it without giving
shareholders 60 days' written notice.
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During periods of substantial economic or market change, telephone
redemptions may be difficult to complete. If you are unable to contact the Fund
by telephone, you may redeem your shares by mail as described above under
"Regular Redemption".
By electing the telephone redemption option, you may be giving up a measure
of security which you might have had if you were to redeem in writing. The
Trust will employ reasonable procedures to confirm that instructions
communicated by telephone are genuine, such as recording telephone calls,
providing written confirmation of transactions, or requiring a form of personal
identification prior to acting on instructions received by telephone. To the
extent the Trust does not employ reasonable procedures, it and/or its service
contractors may be liable for any losses due to unauthorized or fraudulent
instructions. Neither the Trust, the Transfer Agent nor ALPS will be liable for
following instructions communicated by telephone that are reasonably believed to
be genuine. Accordingly, you, as a result of this policy, may bear the risk of
fraudulent telephone redemption transactions.
CHECK REDEMPTION
You may request on your account application or by written request to the
Fund that the Fund provide redemption checks drawn on your account. In order to
establish the checkwriting option, you must manually sign a signature card that
includes all authorized individuals. Checks will be sent only to the registered
owner(s) of the account and only to the address of record. Checks may be made
payable to the order of any person. When a check is presented to the Transfer
Agent for payment, the Transfer Agent, as your agent, will cause the Fund to
redeem a sufficient number of your Fund shares to cover the amount of the check.
Shares earn dividends through the day the redemption is processed. There is no
charge to you for the use of the checks; however, the Transfer Agent will impose
a charge for stopping payment of a check upon your request, or if the Transfer
Agent cannot honor a check due to insufficient funds or other valid reasons. A
request to reverse a stop payment order must be received in writing.
Checks may not be written to redeem shares purchased by check until the
date that good funds are credited to the Fund's custodian by its correspondent
bank. If the amount of the check is greater than the value of the shares in your
account, the check will be returned marked "insufficient Funds". Checks written
on amounts subject to the hold described above will be returned marked
"uncollected". If your check does not clear, you will be responsible for any
loss the Fund, Custodian or Transfer Agent may incur.
A check may not be used to close an account. Checkwriting is not available
to holders of shares in certificate form or if you are subject to Internal
Revenue Service backup withholding. It is also inadvisable for you to write a
check for an amount close to the total value of your account. The Trust reserves
the right to terminate or alter the checkwriting service at any time.
GENERAL REDEMPTION INFORMATION
Except for the presence of certain exceptional circumstances as described
in the Investment Company Act of 1940, the Fund will pay for redeemed shares by
mail within seven days after the Fund receives your order and supporting
documents in proper form (except as provided by the rules of the Securities and
Exchange Commission). Where payment is to be made by wire via the Federal
Reserve Wire System, the Fund will wire redemption proceeds on the same day
after receiving your redemption order, provided it is made before 1:00 P.M.
Eastern Time on business days and 11:00 a.m. Eastern Time on Half Days.
However, if any of the shares were purchased by check, the Fund may delay the
payment of redemption proceeds until the Transfer Agent is reasonably satisfied
that the check has been collected, which could take up to 15 days from the
purchase date.
There is no charge for share redemptions. The Fund may redeem an account
that has a balance of less than $25,000 if the shareholder does not increase the
amount of the account to at least $25,000 upon 30 days' notice.
Please direct questions concerning the proper form for redemption requests
to the Fund at (800) 298-3442.
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SHAREHOLDER SERVICES
EXCHANGE PRIVILEGE
You may sell your Fund shares and buy shares of the U.S. Government Money
Market Fund, another investment portfolio of the Trust, in exchange by written
request. There are no fees or commissions for exchanging Trust shares. If you
have checked the appropriate box on your Account Application, you may also
initiate exchanges by telephone. Exchange requests should be directed to the
Fund at (800) 298-3442.
Exchange transactions must be for amounts of $1,000 or more. Because
exchanges may have tax consequences, you should consult your tax adviser for
further information. The U.S. Government Money Market Fund must be registered
for sale in your state and must meet the investment criteria for your
institution. See "Suitability". Prior to requesting an exchange of Fund shares,
you should call the Fund at (800) 298-3442. You should read the current
prospectus for the U.S. Government Money Market Fund. Each Fund has its own
minimum balance requirements which must be adhered to.
During periods of significant economic or market change, telephone
exchanges may be difficult to complete. If you are unable to contact the Fund
by telephone, you may also mail the exchange request to the Fund at the address
listed under "Regular Redemption". Neither the Trust, the Transfer Agent nor
ALPS will be responsible for the authenticity of exchange instructions received
by telephone except as set forth under "How to Redeem Shares - Telephone
Redemption."
The Trust can provide you with information concerning certain limitations
on the exchange privilege, including those related to frequency. The Trust may
modify or terminate the exchange privilege but will not materially change or
terminate it without giving shareholders 60 days' written notice.
TAXES
While municipal investors are generally exempt from Federal income taxes,
each investor should independently ascertain its tax status. With respect to
investors who are not exempt from Federal income taxes, dividends derived from
net investment income and short term capital gains are taxable as ordinary
income distributions and are taxable when paid, whether investors receive
distributions in cash or reinvest them in additional shares, except that
distributions declared in December and paid in January are taxable as if paid on
December 31. The Fund will send to non-exempt investors an IRS Form 1099-DIV
showing their taxable distributions for the past calendar year.
The Fund has qualified and intends to continue to qualify as a "regulated
investment company" under the Internal Revenue Code of 1986, as amended (the
"Code"). This qualification will relieve the Fund of liability for Federal
income taxes, to the extent its earnings are distributed in accordance with the
Code.
The information above is only a summary of some of the federal tax
consequences generally affecting the Fund and its shareholders, and no attempt
has been made to discuss individual tax consequences. In addition to Federal
taxes, investors may be subject to state or local taxes on their investment.
Investors should consult their tax advisor to determine whether a Fund is
suitable to their particular tax situation.
When investors sign their account application, they will be asked to
certify that their social security or taxpayer identification number is correct
and that they are not subject to 31% backup withholding for failing to report
income to the IRS. If investors violate IRS regulations, the IRS can require the
Fund to withhold 31% of taxable distributions and redemptions.
The Fund declares dividends from net investment income daily and pays such
dividends monthly. The Fund intends to distribute substantially all of its net
investment income and capital gains, if any, to shareholders within each
calendar year as well as on a fiscal year basis.
Since all of the Fund's net investment income is expected to be derived
from earned interest, it is anticipated that all dividends paid by the Fund will
be taxable as ordinary income to those shareholders who are not exempt from
Federal income taxes, and that no part of any distribution will be eligible for
the dividends received deduction for corporations.
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OTHER INFORMATION
CAPITALIZATION
The Trust was organized as a Delaware business trust on November 30, 1993,
and consists of two separate portfolios or series, one of which is offered in
this Prospectus. The Board of Trustees may establish additional series in the
future. The capitalization of the Trust consists solely of an unlimited number
of shares of beneficial interest with a par value of $0.001 each. When issued,
shares of the Trust are fully paid and non-assessable.
Under Delaware law, shareholders could, under certain circumstances, be
held personally liable for the obligations of a series of the Trust but only to
the extent of the shareholder's investment in such series. However, the Trust
Instrument disclaims liability of the shareholders, Trustees or officers of the
Trust for acts or obligations of the Trust, which are binding only on the assets
and property of each series of the Trust and requires that notice of the
disclaimer be given in each contract or obligations entered into or executed by
the Trust or the Trustees. The risk of a shareholder incurring financial loss
on account of shareholder liability is limited to circumstances in which the
Trust itself would be unable to meet its obligations and should be considered
remote and is limited to the amount of the shareholder's investment in the Fund.
VOTING
Shareholders have the right to vote in the election of Trustees and on any
and all matters on which, by law or under the provisions of the Trust
Instrument, they may be entitled to vote. The Trust is not required to hold
regular annual meetings of the Fund's shareholders and does not intend to do so.
Shareholders of the Fund may vote separately on items which affect only the
Fund.
The Trust Instrument provides that the holders of not less than two-thirds
of the outstanding shares of the Trust may remove a person serving as Trustee
either by declaration in writing or at a meeting called for such purpose. The
Trustees are required to call a meeting of shareholders for the purpose of
considering the removal of a person serving as Trustee if requested in writing
to do so by the holders of not less than 10% of the outstanding shares of the
Trust or Fund.
Shares entitle their holders to one vote per share (with proportionate
voting for fractional shares). As used in this Prospectus, the phrase "vote of
a majority of the outstanding shares" of the Fund (or the Trust) means the vote
of the lesser of: (1) 67% of the shares of the Fund (or the Trust) present at a
meeting if the holders of more than 50% of the outstanding shares are present in
person or by proxy; or (2) more than 50% of the outstanding shares of the Fund.
PERFORMANCE INFORMATION
From time to time, the Fund may quote its "yield" and "effective yield" in
advertisements or in communications to shareholders. BOTH YIELD FIGURES ARE
BASED ON HISTORICAL EARNINGS AND ARE NOT INTENDED TO INDICATE FUTURE
PERFORMANCE. The "yield" quoted in advertisements refers to the income
generated by an investment in the Fund over a specified seven-day period. This
income is then "annualized". That is, the amount of income generated by the
investment during that week is assumed to be generated each week over a 52-week
period and is shown as a percentage of the investment. The "effective yield" is
calculated similarly but, when annualized, the income earned by an investment in
the Fund is assumed to be reinvested. The "effective yield" will be slightly
higher than the "yield" because of the compounding effect of the assumed
reinvestment.
Additionally, the yield of the Fund may be compared in advertisements or in
reports to shareholders to those of other mutual funds with similar investment
objectives and to other relevant indices or to rankings prepared by independent
services or other financial or industry publications that monitor the
performance of mutual funds. For example, the Funds' yields may be compared to
the IBC/DONOGHUE'S MONEY FUND AVERAGE, which is an average complied by
IBC/DONOGHUE'S MONEY FUND REPORT. In addition, yields may be compared to the
average yields reported by the BANK RATE MONITOR for money market deposit
accounts offered by the 50 leading banks and thrift institutions in the top five
standard metropolitan statistical areas.
Yield data as reported in national financial publications, including MONEY
MAGAZINE, FORBES, BARRON'S, THE WALL STREET JOURNAL and THE NEW YORK TIMES, or
in publications of a local or regional nature, may also be used in comparing the
yields of the Fund.
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Since yields fluctuate, you cannot necessarily use yield data to compare an
investment in the Fund's shares with bank deposits, savings accounts and similar
investment alternatives which often provide an agreed or guaranteed fixed yield
for a stated period of time. Yield is generally a function of the kind and
quality of the instruments held in a portfolio, portfolio maturity, operating
expenses and market conditions. Any fees charged by service institutions
directly to their customer accounts in connection with investments in shares of
the Fund will not be included in the Fund's calculations of yield.
INQUIRIES
Please write or call the Trust at the address or telephone number listed on
the cover of this Prospectus with any inquiries you may have regarding the Fund
or any other investment portfolios of the Trust that are not offered by this
Prospectus.
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15
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INVESTMENT ADVISER
GE Investment Management Incorporated
3003 Summer Street
P.O.Box 7900
Stamford, Connecticut 06905
DISTRIBUTOR & ADMINISTRATOR
ALPS Mutual Funds Services, Inc.
370 Seventeenth Street
Suite 2700
Denver, Colorado 80202
LEGAL COUNSEL
Baker & McKenzie
805 Third Avenue
New York, New York 10022
INDEPENDENT AUDITORS
Deloitte & Touche LLP
555 Seventeenth Street
Suite 3600
Denver, Colorado 80202
CUSTODIAN
State Street Bank and Trust
Company of Connecticut N.A.
750 Main Street
Suite 1114
Hartford, Connecticut 06103
SUB-CUSTODIAN & TRANSFER AGENT
State Street Bank & Trust Company
P.O. Box 1978
Boston, Massachusetts 02105
NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS NOT CONTAINED IN THIS PROSPECTUS, OR IN THE FUND'S STATEMENT
OF ADDITIONAL INFORMATION INCORPORATED HEREIN BY REFERENCE, IN CONNECTION
WITH THE OFFERING MADE BY THIS PROSPECTUS AND, IF GIVEN OR MADE, SUCH
INFORMATION OR REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN
AUTHORIZED BY THE TRUST OR ITS DISTRIBUTOR. THIS PROSPECTUS DOES NOT
CONSTITUTE AN OFFERING BY THE TRUST OR BY THE DISTRIBUTOR IN ANY JURISDICTION
IN WHICH SUCH OFFERING MAY NOT LAWFULLY BE MADE.
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March 31, 1997
FINANCIAL INVESTORS TRUST
U.S. TREASURY MONEY MARKET FUND
U.S. GOVERNMENT MONEY MARKET FUND
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION DATED AUGUST 28, 1996
The following information supersedes any contrary information contained in
the Statement of Additional Information dated August 28, 1996 for the Financial
Investors Trust (formerly known as Institutional Investors Trust and FGIC Public
Trust)(the "Trust") with respect to the U.S. Treasury Money Market Fund (the
"Treasury Fund") and U.S. Government Money Market Fund (the "Government Fund")
(collectively, the "Funds").
Effective March 31, 1997, the name of the Trust was changed from Institutional
Investors Trust to Financial Investors Trust. At a Special Meeting held March
21, 1997, shareholders of the Trust voted to change the name of the Trust to
Institutional Investors Trust from FGIC Public Trust as more fully described
in the Supplement to the Statement of Additional Information dated March 26,
1997. The subsequent change of name to Financial Investors Trust is designed
to avoid any confusion between the Trust and other investment companies and to
reflect the Trust's broader scope of potential investors.
