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<PAGE> 1
[LOGO]
RAMESH C. JHAVERI INVESTMENTS TECHNOLOGY, INC.
President 18820 High Pkwy.
Rocky River, OH 44116
Phone: (216) 356-1565
Fax: (216) 331-7040
November 27, 1995
Dear Investor:
I have enclosed the supplement to the prospectus for the Jhaveri Value Fund
(JVF) which should be kept with the original prospectus. I have also enclosed
JVF's semi annual report from commencement of operation, May 1, 1995 through
September 30, 1995. During this period the Net Asset Value increased from
$12.00 to $12.84 and the Net Assets increased from $100,000 to $8,667,782. An
annualized total return of 17.77% was achieved during this period.
Since late July the equity markets have been trading at historically high
levels. Typically, at the market top, there is increased volatility and
speculation, increased IPOs and secondary offerings, increased mergers and
acquisitions, spin-offs and stock splits, and significant sector rotation. The
current market is characterized by all these activities, so greater caution is
warranted. However, the market may continue to move to a higher trading range
predicated by:
1. Favorable interest rate environment
2. Contained inflation
3. Low unemployment
4. Undervaluation of the Dollar
5. Moderate corporate earnings and GDP growth
6. Strong competitive position of U.S. companies - Significant
cash flow generation and balance sheet improvement
7. Better corporate management and share repurchase programs
8. Increasing participation by employees in retirement (401K)
and IRA plans with greater allocation to equity
mutual funds
This high valuation, increased volatility, and sector rotation has created a
difficult investment environment. There are stock groups which are at high
valuations and moving higher and stock groups which have declined 25-75% from
their peak, oversold, but are still in a downtrend.
Our Stock Selection/Valuation Model is presenting us with two choices for
possible purchase: (1) Buy stocks in the high valuation group on correction
and sell higher. This may result in short term capital gains. (2) Buy stocks
in undervalued and oversold group. These stocks are vulnerable to further
decline due to short selling and tax loss selling. However, they are ripe for
accumulation. Once the tax selling is complete, these stocks should begin
their long term upside move with intermittent selling. This is a longer term
investment strategy.
<PAGE> 2
We will employ both choices in our investment strategy with significantly
greater emphasis toward the second choice. Further, it is consistent with the
two components of our operating strategy:
o Stock Selection/Valuation Model designed to provide optimum
Buy/Sell/Hold decisions
o Risk management strategy to provide further screening and
fine tuning of Buy/Sell/Hold decisions
This strategy is based on two historical and statistical observations:
During the last 50 years, the market has had twelve bull markets and eleven
bear markets. On average, the bull markets increased 100% and lasted 3 3/4
years. On average, the bear markets declined 25% and lasted 3/4 year. Based
on these statistics, it pays to be a long term investor with a dynamic
allocation between stocks and cash.
Over the years, annual volatility in the S&P 500 stocks has averaged 50%
between annual high and annual low. If you buy the stock within 20% of the low
range and sell within 20% of the high range, this would result in 30-60% annual
return depending on the holding period. Our stock model is designed to
capitalize on this volatility. However, there is no assurance that we will be
able to do so.
With these observations in mind, we will continue to manage to achieve our
objective of long term capital appreciation.
If you have any questions please call us at (216) 356-1565.
Sincerely,
Ramesh C. Jhaveri
<PAGE> 3
SUPPLEMENT DATED NOVEMBER 10, 1995 TO
PROSPECTUS DATED MAY 1, 1995
JHAVERI VALUE FUND
The following condensed supplementary financial information for the
period ended September 30, 1995, is derived from the unaudited financial
statements of the Trust. The unaudited financial statements of the Trust are
included in the Statement of Additional Information.
<TABLE>
- -----------------------------------------------------------------------------------------------------
JHAVERI VALUE FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
from May 1, 1995 (Commencement of Operations)
through September 30, 1995
(Unaudited)
<S> <C>
Net asset value - beginning of period...................................... $12.00
Income from investment operations
Net investment income...................................................... .02
Net gain on investments both realized and unrealized....................... .82
--------
Total from investment operations........................................... 12.84
Less distributions
Dividends from net investment income....................................... 0
--------
Net asset value - end of period............................................ $12.84
========
Total Return**............................................................. 17.77%
Ratios/supplemental data
Net assets, end of period (in 000's)........................................ 8,668
Ratio of expenses to average net assets **.................................. 2.48%
Ratio of net investment income to average net assets**...................... 42%
Portfolio turnover rate..................................................... 22.44%
**Annualized
- -----------------------------------------------------------------------------------------------------
</TABLE>
The following should be read in conjunction with the section entitled "General
Information" on page 13 of the Prospectus.
As of September 30, 1995, the Triad-Erisa Partnership, Ramesh C. Jhaveri
and Nalini R. Jhaveri, M.D. may be deemed to control the Fund as a result
of their respective beneficial ownership of the shares of the Fund.
<PAGE> 4
<TABLE>
JHAVERI VALUE FUND
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995
(Unaudited)
<S> <C>
ASSETS
Investments in securities, at value (cost $8,638,283)............... $8,826,243
Receivable for dividends and interest............................... 18,945
----------
Total assets 8,845,188
----------
LIABILITIES
Payable for investment securities purchased.......................... 116,682
Accrued operating expenses........................................... 60,724
----------
Total Liabilities 177,406
----------
NET ASSETS
Net assets (equivalent to $12.84 per share based on 675,176
shares of capital stock outstanding)............................... $8,667,782
==========
Composition of Net Assets:
Paid in capital...................................................... $8,238,077
Accumulated net investment income................................... 11,965
Accumulated net realized gain on investments........................ 229,780
Net unrealized appreciation on investments........................... 187,960
----------
NET ASSETS, SEPTEMBER 30, 1995 $8,667,782
==========
</TABLE>
<PAGE> 5
JHAVERI VALUE FUND
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
Market
Shares Value
------------ ----------
COMMON STOCKS 67.77%
<S> <C> <C>
AUTO/TRUCK-REPLACE/ORIG.PARTS 0.13%
FEDERAL-MOGUL CORP............................ 600 $ 11,475
-----------
AUTOMOBILE-MANUFACTURING 3.19%
CHRYSLER CORP................................. 1,500 79,500
CONSORCIO GRUPO DINA S.A.ADR+................. 5,600 19,600
FORD MOTOR COMPANY............................ 720 22,410
GENERAL MOTORS CORP........................... 3,300 154,687
-----------
276,197
-----------
BANKS-MONEY CENTER 1.30%
BANKERS TRUST N Y............................. 1,600 112,400
-----------
BANKS-REGIONAL 1.00%
BANC ONE CORP.(OHIO).......................... 700 25,550
PNC BANK CORP................................. 2,200 61,325
-----------
86,875
-----------
BEVERAGES-ALCOHOLIC/SOFT DRINK 0.19%
BUENAS AIRES EMBOTELLADORA ADR+............... 700 16,275
-----------
BROADCASTING-RADIO/TV/CABLE 0.39%
GRUPO TELEVISA S.A.ADR+....................... 1,700 34,000
-----------
BUILDING-HEAVY CONSTRUCTION 5.24%
EMPRESAS ICA SOCIEDAD S.A.ADR+................ 24,400 280,600
GRUPO TRIBASA SA ADR+*........................ 16,100 118,737
MORRISON-KNUDSEN CORP......................... 7,100 55,025
-----------
454,362
-----------
</TABLE>
<PAGE> 6
<TABLE>
<CAPTION>
Market
Shares Value
------------ ----------
<S> <C> <C>
BUILDING-RESIDENT/COMMERCIAL 0.29%
KAUFMAN & BROAD HOME CORP..................... 2,000 $ 25,250
-----------
BUSINESS PRODUCTS-RETAIL/WHLES 0.15%
BMC WEST CORP*................................ 900 12,600
-----------
CHEMICALS-SPECIALTY 0.15%
METHANEX CORP+*............................... 1,900 12,825
-----------
COMMERCIAL SERVICES-MISC 0.29%
FRANKLIN QUEST CO*............................ 500 12,250
VALUE HEALTH INC*............................. 500 13,250
-----------
25,500
-----------
COMPUTER-GRAPHICS 1.16%
Q M S INC*.................................... 1,900 8,550
RADIUS INC*................................... 1,000 7,125
SCITEX LTD. ORD+.............................. 4,500 84,938
-----------
100,613
-----------
COMPUTER-LOCAL NETWORK 0.12%
TRICORD SYS INC*.............................. 2,200 10,038
-----------
COMPUTER-MAINFRAMES 1.25%
AMDAHL CORPORATION*........................... 1,700 16,362
INTL.BUSINESS MACHINES CORP................... 300 28,312
UNISYS CORP*.................................. 8,100 63,788
-----------
108,462
-----------
COMPUTER-MINI/MICRO 0.36%
AST RESEARCH INC*............................. 2,300 23,000
</TABLE>
<PAGE> 7
<TABLE>
<CAPTION>
Market
Shares Value
------------ ----------
<S> <C> <C>
TANDEM COMPUTERS*............................. 700 $ 8,575
----------
31,575
----------
COMPUTER-PERIPHERAL EQUIPMENT 2.26%
AMERICAN POWER CONVERSION*.................... 4,900 60,025
GENERAL DATACOM INDUSTRIES INC*............... 2,200 32,450
STORAGE TECH CORP*............................ 4,218 103,341
----------
195,816
----------
COMPUTER-SERVICES 0.42%
AMERIDATA TECHNOLOGIES INC*................... 600 7,050
INTELLIGENT ELECTRONICS INC................... 3,500 29,750
----------
36,800
----------
COMPUTER-SOFTWARE 0.68%
BANYAN SYSTEMS INC*........................... 2,000 20,250
WALL DATA INC*................................ 2,200 39,050
----------
59,300
----------
CONSUMER PRODUCTS-GLASS/METAL 0.08%
VITRO S A+.................................... 840 6,825
----------
CONTAINER- METAL/GLASS 0.22%
CROWN CORK & SEAL*............................ 500 19,375
----------
DIVERSIFIED OPERATION 1.37%
CORNING INC................................... 500 14,312
HANSON PLC ADR+............................... 2,770 45,013
JOSTENS INCORPORATED.......................... 1,400 32,900
JWP INC*...................................... 15,603 0
SYBASE INC*................................... 500 16,063
TRIARC COS INC*............................... 700 10,150
----------
118,438
----------
</TABLE>
<PAGE> 8
<TABLE>
<CAPTION>
Market
Shares Value
------------ ----------
<S> <C> <C>
ELECTRONIC-SEMICONDUCTORS 0.14%
TSENG LABS INC*............................... 1,400 $ 12,075
---------
FINANCE-INVESTMENT BROKERS 0.80%
PAINE WEBBER GROUP INC........................ 1,400 27,650
SALOMON INC................................... 1,100 42,075
---------
69,725
---------
FINANCE-SAVINGS & LOAN 0.45%
AHMANSON H F & CO............................. 500 12,687
GREAT WESTERN FINANCIAL CORP.................. 1,100 26,125
---------
38,812
---------
FOOD-MISC.PREPARATION 3.67%
ARCHER DANIELS MIDLAND........................ 630 9,686
CHIQUITA BRANDS INTL.INC...................... 18,000 308,250
---------
317,936
---------
HOUSEHOLD-APPLIANCES 0.11%
MAYTAG CORP................................... 550 9,625
---------
HOUSEWARES 0.78%
SHAW INDUSTRIES INC........................... 4,600 67,850
---------
INSURANCE-LIFE/PROPERTY/CAS. 0.61%
BANKERS LIFE HOLDING CORP..................... 400 7,500
JOHN ALDEN FIN'L CORP......................... 1,200 27,150
WESTERN NAT'L CORP............................ 1,300 17,875
---------
52,525
---------
LEISURE PRODUCTS 1.89%
BRUNSWICK CORP................................ 1,700 34,425
</TABLE>
<PAGE> 9
<TABLE>
<CAPTION>
Market
Shares Value
------------ ----------
<S> <C> <C>
C M L GROUP INC............................... 7,000 $ 49,000
CALLAWAY GOLF CO.............................. 1,340 20,770
KENNETECH CORP*............................... 5,400 31,050
SCORE BOARD INC*.............................. 1,900 11,638
TOPPS COMPANY INC*............................ 700 4,550
TYCO TOYS INC*................................ 2,300 12,075
----------
163,508
----------
LEISURE SERVICES 0.69%
DISCOVERY ZONE INC*........................... 2,900 16,222
INTL GAME TECHNOLOGY.......................... 2,500 33,437
PRESIDENT CASINOS INC*........................ 2,600 10,400
----------
60,059
----------
MACHINERY-ELECTRICAL EQUIPMENT 2.73%
WESTINGHOUSE ELECTRIC CORP.................... 15,750 236,250
----------
MEDICAL INSTRUMENTS/PRODUCTS 1.64%
UNITED STATES SURGICAL CORP................... 5,300 141,775
----------
MEDICAL-DRUGS 2.12%
ALZA CORP*.................................... 2,000 46,000
CARTER WALLACE INC............................ 10,300 128,750
PERRIGO COMPANY*.............................. 700 8,575
----------
183,325
----------
MEDICAL-GENERIC DRUGS 0.16%
MYLAN LABS INC................................ 700 14,000
----------
MEDICAL-HOSPITALS/NURSING HOME 0.24%
COMMUNITY PSYCHIATRIC CENTERS INC............. 1,500 17,625
TENET HEALTHCARE CORP*........................ 200 3,475
----------
21,100
----------
</TABLE>
<PAGE> 10
<TABLE>
<CAPTION>
Market
Shares Value
------------ ----------
<S> <C> <C>
MEDICAL-OUTPATIENT/HOME CARE 1.15%
CORAM HEALTHCARE CORP*........................ 9,400 $ 38,775
NOVACARE INC*................................. 3,500 26,250
QUANTUM HEALTH RESORTS INC*................... 3,200 34,400
---------
99,425
---------
MEDICAL/DENTAL-SUPPLIES 0.29%
BAUSCH & LOMB INC............................. 600 24,825
---------
METAL ORES-GOLD/NON-FERROUS 0.13%
CYPRUS AMAX MINERALS CO....................... 400 11,250
---------
MISC. 0.00%
TEXAS GENERAL RES*............................ 200 0
---------
OIL & GAS-FIELD SERVICES 0.43%
BAKER HUGHES INC.............................. 900 18,337
USX-DELHI GROUP............................... 1,900 19,238
---------
37,575
---------
OIL & GAS-INTERNATIONAL INTEGR 0.28%
USX-MARATHON GROUP............................ 600 11,850
YPF SOCIEDAD ADR+............................. 700 12,600
---------
24,450
---------
OIL & GAS-PRODUCTION/PIPELINE 0.03%
TRANSCANADA PIPELINE LTD+..................... 200 2,625
---------
OIL & GAS-US EXPLORE & PROD. 0.15%
ORYX ENERGY CO*............................... 1,000 13,000
---------
</TABLE>
<PAGE> 11
<TABLE>
<CAPTION>
Market
Shares Value
------------ ----------
<S> <C> <C>
OIL & GAS-US INTEGRATED 0.51%
OCCIDENTAL PETROLEUM CORP..................... 400 $ 8,800
PENNZOIL COMPANY.............................. 800 35,100
-----------
43,900
-----------
POLLUTION CONTROL-EQUIPMENT/SV 1.33%
SAFETY KLEEN CORP............................. 6,900 100,913
WMX TECHNOLOGIES INC.......................... 500 14,250
-----------
115,163
-----------
RETAIL-APPAREL/SHOE 0.76%
BURLINGTON COAT FACTORY WHSE.CORP*............ 3,000 39,750
CHARMING SHOPPES INC*......................... 700 3,150
DESIGNS INC*.................................. 700 5,425
EDISON BROS STORES INC*....................... 3,000 17,250
-----------
65,575
-----------
RETAIL-DEPARTMENT STORES 3.82%
CALDOR CORP*.................................. 17,000 93,500
K MART CORPORATION............................ 16,400 237,800
-----------
331,300
-----------
RETAIL-DISCOUNT & VARIETY 2.23%
BRADLEES INC*................................. 6,500 13,000
TJX COS INC................................... 500 5,938
TOYS R US INC*................................ 1,500 40,500
WOOLWORTH CORP*............................... 8,500 133,875
-----------
193,313
-----------
RETAIL-DIVERSIFIED/MISC. 0.61%
MICHAELS STORES INC*.......................... 2,700 43,875
MUSICLAND STORES CORP*........................ 700 5,950
SPORTS & REC INC*............................. 300 3,075
-----------
52,900
-----------
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
Market
Shares Value
------------ ----------
<S> <C> <C>
RETAIL-FOOD & RESTAURANT 0.23%
CHECKERS DRIVE-IN RESTAURANTS INC*............ 3,700 $ 7,169
SHONEY'S INC*................................. 1,200 13,200
-----------
20,369
-----------
RETAIL-HOME FURNISHINGS 0.41%
BOMBAY CO INC*................................ 4,400 35,750
-----------
RETAIL-MAIL ORDER & DIRECT 0.32%
FINGERHUT COS INC............................. 1,500 24,187
LANDS END INC*................................ 200 3,150
-----------
27,337
-----------
RETAIL-SUPERMARKETS 1.26%
FOOD LION INC. CL A........................... 1,900 11,519
GREAT ATLANTIC & PACIFIC TEA CO............... 3,500 98,000
-----------
109,519
-----------
RETAIL/WHOLESALE-BLDG.PRODS. 0.58%
EAGLE HARDWARE & GARDEN INC*.................. 5,400 50,625
-----------
RETAIL/WHOLESALE-JEWELRY 0.62%
JAN BELL MARKETING INC*....................... 11,300 43,081
SERVICE MERCHANDISE CO. INC*.................. 1,500 10,688
-----------
53,769
-----------
SHOES & RELATED APPAREL 0.09%
STRIDE RITE CORP.............................. 700 7,963
-----------
STEEL-PRODUCERS 1.62%
BETHLEHEM STEEL CORP*......................... 5,300 74,862
BIRMINGHAM STEEL CORP......................... 1,800 31,500
LTV CORP. NEW*................................ 600 8,400
</TABLE>
<PAGE> 13
<TABLE>
<CAPTION>
Market
Shares Value
------------ ----------
<S> <C> <C>
WHX CORP*..................................... 2,200 $ 25,300
-----------
140,062
-----------
TELECOMMUNICATION EQUIPMENT 1.21%
ANTEC CORP*................................... 1,800 24,075
COMPRESSION LABS INC*......................... 8,700 68,512
ITEL CORP*.................................... 9 340
SCIENTIFIC ATLANTIC INC....................... 700 11,813
-----------
104,740
-----------
TELECOMMUNICATION SERVICES 0.07%
U.S.LONG DISTANCE CORP*....................... 400 6,025
-----------
TEXTILE/APPAREL-MILL PRODUCTS 1.73%
FRUIT OF THE LOOM*............................ 500 10,312
LIZ CLAIBORNE INC............................. 5,200 131,300
LONGVIEW FIBRE CO............................. 200 3,050
STARTER CORP*................................. 700 5,075
-----------
149,737
-----------
TOBACCO 1.49%
RJR NABISCO HOLDINGS CORP..................... 3,986 129,047
-----------
TRANSPORTATION-AIRLINE 0.16%
DELTA AIRLINES................................ 200 13,850
-----------
TRANSPORTATION-TRUCK 0.12%
AMERICAN FREIGHTWAYS*......................... 700 10,500
-----------
TRUCKS & PARTS-LONG HAUL 0.39%
NAVISTAR INTL CORP*........................... 2,800 33,600
-----------
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>
Market
Shares Value
------------ ----------
<S> <C> <C>
UTILITY-ELECTRIC POWER 5.56%
CENTERIOR ENERGY CORP......................... 10,500 $ 114,187
CONSOLIDATED EDISON CO. N.Y. INC.............. 900 27,337
ENTERGY CORP. NEW............................. 1,400 36,575
NIAGARA MOHAWK POWER CORP..................... 300 3,938
PACIFIC GAS & ELECTRIC CO..................... 2,000 59,750
SCE CORP...................................... 9,500 168,625
TEXAS UTILITIES CO............................ 1,000 34,875
UNICOM CORP................................... 1,200 36,300
----------
481,587
----------
UTILITY-GAS DISTRIBUTION 0.74%
NORAM ENERGY CORP............................. 8,150 64,181
----------
UTILITY-TELEPHONE 3.18%
PACIFIC TELESIS GROUP......................... 500 15,375
TELEFONOS DE MEXICO S.A.ADR+.................. 8,200 260,350
----------
275,725
----------
TOTAL COMMON STOCKS............................ 5,873,253
----------
Principal
Amount Value
---------- ----------
BONDS 0.02%
WMX TECHNOLOGIES INC. 2% SUBORDINATED
CONVERTIBLE NOTES DUE 01/24/2005............ 2,000 $ 1,700
----------
SHORT TERM INVESTMENTS 34.05%
STAR TREASURY FUND 5.16%......................2,951,290 2,951,290
----------
TOTAL INVESTMENTS............... 101.83% 8,826,243
Other assets less liabilities...... -1.83% (158,461)
------- ---------
TOTAL NET ASSETS................ 100.00% $8,667,782
======= ==========
* Non-income producing property
+ Foreign security
</TABLE>
<PAGE> 15
<TABLE>
JHAVERI VALUE FUND
STATEMENT OF OPERATIONS
for the period from May 1, 1995
(Commencement of operations)
through September 30, 1995
(Unaudited)
<S> <C>
INVESTMENT INCOME
Interest $ 40,021
Dividends 42,668
----------
Total Investment Income 82,689
----------
EXPENSES
Operating Expenses (Note 3) 70 ,724
----------
Net investment income 11,965
----------
Net realized gain on security transactions 229,780
Net change in unrealized appreciation on
investments 187,960
----------
Net gain on investments 417,740
----------
Net increase in net assets resulting
from operations $429,705
==========
</TABLE>
<PAGE> 16
<TABLE>
JHAVERI VALUE FUND
STATEMENT OF CHANGES IN NET ASSETS
for the period from May 1, 1995
(Commencement of Operations)
through September 30, 1995
(Unaudited)
<S> <C>
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income................................................ $ 11,965
Net realized gain on securities transactions......................... 229,780
Net change in unrealized appreciation of investments................. 187,960
-----------
Net increase in net assets resulting from operations................. 429,705
-----------
DISTRIBUTION TO SHAREHOLDERS:
From net investment income.......................................... 0
From net realized gain on investments............................... 0
FUND SHARE TRANSACTIONS:
Net proceeds from shares sold........................................ 8,250,708
Dividends reinvested................................................. 0
Payment for shares redeemed.......................................... (112,631)
------------
Net increase in net assets from fund share transactions.............. 8,138,077
------------
NET ASSETS:
Beginning of period.................................................. 100,000
------------
End of period (including undistributed investment income of
$11,965).......................................................... $8,667,782
============
</TABLE>
<PAGE> 17
JHAVERI VALUE FUND
NOTES TO FINANCIAL STATEMENTS- SEPTEMBER 30, 1995
(Unaudited)
NOTE 1. ORGANIZATION
The Jhaveri Trust (the "Trust") is registered under the Investment
Company Act of 1940, as amended, as a diversified, open-end management
investment company. The Trust was established under the laws of Ohio by an
Agreement and Declaration of Trust dated January 18, 1995 (the "Trust
Agreement"). The Trust Agreement permits the Trustees to issue an unlimited
number of shares of beneficial interest of separate series without par value.
Shares of one series have been authorized, which shares constitute the
interests in the Jhaveri Value Fund (the "Fund").
NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies followed by
the Fund in the preparation of its financial statements.
Security Valuation-Securities which are traded on any exchange or on the
NASDAQ over-the-counter market are valued at the last quoted sale price.
Lacking a last sale price, a security is valued at its last bid price except
when, in the Adviser's opinion, the last bid price does not accurately reflect
the current value of the security. All other securities for which
over-the-counter market quotations are readily available are valued at their
last bid price. When market quotations are not readily available, when the
Adviser determines the last bid price does not accurately reflect the current
value or when restricted securities are being valued, such securities are
valued as determined in good faith by the Adviser, in conformity with
guidelines adopted by and subject to review of the Board of Trustees of the
Trust.
Fixed income securities generally are valued by using market quotations,
but may be valued on the basis of prices furnished by a pricing service when
the Adviser believes such prices accurately reflect the fair market value of
such securities. A pricing service utilizes electronic data processing
techniques based on yield spreads relating to securities with similar
characteristics to determine prices for normal institutional-size trading units
of debt securities without regard to sale or bid prices. When prices are not
readily available from a pricing service, or when restricted or illiquid
securities are being valued, securities are valued at fair value as determined
in good faith by the Adviser, subject to review of the Board of Trustees.
Short term investments in fixed income securities with maturities of less than
60 days when acquired, or which subsequently are within 60 days of maturity,
are valued by using the amortized cost method of valuation, which the Board
has determined will represent fair value.
Federal Income Taxes-The Fund intends to qualify each year as a
"regulated investment company" under the Internal Revenue Code of 1986, as
amended. By so qualifying, the Fund will not be subject to federal income
taxes to the extent that it distributes substantially all of its net invesment
income and any realized capital gains.
Dividends and Distributions-The Fund intends to distribute substantially
all of its net investment income as dividends to its shareholders on an annual
basis. The Fund intends to distribute its net long term capital gains and its
net short term capital gains at least once a year.
Other-The Fund follows industry practice and records security
transactions on the trade date. The specific identification method is used for
determining gains or losses for financial statements and income tax purposes.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on an accrued basis.
<PAGE> 18
NOTE 3. INVESTMENT ADVISORY AGREEMENT
The Trust has an investment advisory agreement with Investments
Technology, Inc. Ramesh C. Jhaveri and Saumil R. Jhaveri may be deemed to be
controlling persons and affiliates of the Adviser due to their ownership of its
shares and their positions as officers and directors of the Adviser. They,
because of such affiliation, may receive benefits from the management fees paid
to the Adviser.
Under the terms of the managment agreement, (the "Agreement"), the Adviser
manages the Fund's investments subject to approval of the Board of Trustees and
pays all of the expenses of the Fund except brokerage, taxes, interest,
expenses incurred in connection with the organization and initial registration
of its shares and extraordinary expenses. As compensation for its management
services and agreement to pay the Fund's expenses, the Fund is obligated to pay
the Adviser a fee computed and accrued daily and paid monthly at an annual rate
of 2.50% of the average daily net assets of the Fund. The rate of the
advisory fees paid by most investment companies to their investment advisers is
lower than the rate of the advisory fees paid by the Fund. In this regard, it
should be noted that most investment companies pay their own operating expenses
directly, while the Fund's expenses, except those specified above, are paid by
the Adviser.
NOTE 4. CAPITAL SHARE TRANSACTIONS
As of September 30, 1995 there was an unlimited number of no par value
shares of capital stock authorized for the Fund.
Transactions in capital stock were as follows:
<TABLE>
<CAPTION>
For the period from
May 1, 1995 (Commencement of Operations)
through September 30, 1995
Shares Amount
------- ---------
<S> <C> <C>
Shares sold 675,967 $8,250,708
Shares issued in reinvestment
of dividends 0 0
Shares redeemed (9,124) (112,631)
--------- ----------
Net increase 666,843 $8,138,077
========= ==========
Total paid in capital $8,138,077
==========
</TABLE>
NOTE 5. INVESTMENTS
For the period from May 1, 1995 (commencement of operations) through
September 30, 1995, purchases and sales of investment securities, other than
short-term investments, aggregated $7,007,985 and $1,550,770 respectively.
The gross unrealized appreciation for all securities totaled $479,741 and the
gross unrealized depreciation for all securities totaled $291,781 or a net
unrealized appreciation of $187,960. The aggregate cost of securities for
federal income tax purposes at September 30, 1995 was $8,638,283.
<PAGE> 19
<TABLE>
JHAVERI VALUE FUND
FINANCIAL HIGHLIGHTS
For a share outstanding throughout the period
from May 1, 1995 (Commencement of Operations)
through September 30, 1995
(Unaudited)
<S> <C>
Net asset value - beginning of period..................................... $12.00
Income from investment operations
Net investment income..................................................... .02
Net gain on investments both realized and unrealized...................... .82
-------
Total from investment operations.......................................... 12.84
Less distributions
Dividends from net investment income...................................... 0
-------
Net asset value - end of period........................................... $12.84
=======
Total Return**............................................................ 17.77%
Ratios/supplemental data
Net assets, end of period (in 000's)...................................... 8,668
Ratio of expenses to average net assets **................................ 2.48%
Ratio of net investment income to average net assets**.. ................. 42%
Portfolio turnover rate................................................... 22.44%
**Annualized
</TABLE>
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