As filed with the Securities and Exchange Commission on July 22,
1996
Securities Act File No. 33-92712
Investment Company Act File No. 811-9050
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
X
Pre-Effective Amendment No.
Post-Effective Amendment No. 5
X
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940 X
Amendment No. 9
X
PANORAMA TRUST
(Exact Name of Registrant as Specified in Charter)
One Exchange Place, Boston, MA 02109
Registrant's Telephone Number, including Area Code: (617) 248-3490
Name and Address of Agent for Service: Copies to:
Patricia L. Bickimer, Esq. Joseph P. Barri, Esq.
Panorama Trust Hale and Dorr
One Exchange Place 60 State Street
Boston, MA. 02109 Boston, MA. 02109
Approximate Date of Proposed Public Offering:
As soon as practicable after the Registration Statement becomes
effective.
It is proposed that the filing will become effective:
X immediately upon filing pursuant to paragraph (b)
on pursuant to paragraph (b)
60 days after filing pursuant to paragraph (a)(1)
on pursuant to paragraph (a)(1)
75 days after filing pursuant to paragraph (a)(2)
on __________ pursuant to paragraph (a)(2) of Rule 485.
The Registrant has previously filed a declaration of
indefinite registration of its shares pursuant to Rule 24f-2 under
the Investment Company Act of 1940, as amended. The Registrant's
Rule 24f-2 Notice for the fiscal year ended December 31, 1995 was
filed on February 28, 1996.
EXPLANATORY NOTE
This Post-Effective Amendment relates only to Pictet
International Small Companies Fund, a series of Panorama Trust
(the "Trust"). The prospectus and statement of additional
information dated April 1, 1996 of Pictet Global Emerging Markets
Fund, another series of the Trust, are not affected by this Post-
Effective Amendment.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
FORM N-1A
CROSS REFERENCE SHEET
PURSUANT TO RULE 495 (a)
Part A.
Item No. Prospectus Caption
1. Cover Page Cover Page
2. Synopsis Expenses of the Fund
3. Condensed Financial Information Not Applicable
4. General Description of Registrant Investment Objective and
Policies; Investment Techniques; Risk Factors; General Information
5. Management of the Fund Management of the Fund; Dividends,
Distributions, Taxes and Other Information; General Information
5A. Management's Discussion of Not Applicable
Fund Performance
6. Capital Stock and Other Securities Purchase of Shares;
Redemption of Shares; Exchange of Shares Valuation of Shares;
Dividends, Capital Gains Distribution and Taxes; General
Information
7. Purchase of Securities Being Offered Purchase of Shares
8. Redemption or Repurchase Redemption of Shares; Exchange
of Shares
9. Pending Legal Proceedings Not Applicable
Part B. Statement of Additional
Item No. Information Caption
10. Cover Page Cover Page
11. Table of Contents Table of Contents
12. General Information and History Investment Objective and
Policies; General Information
13. Investment Objectives and Policies Investment Objective and
Policies; Investment Limitations
14. Management of the Registrant Management of the Fund;
Investment Advisory and Other Services
15. Control Persons and Principal Holders of Securities
Management of the Fund; Investment Advisory and Other
Services
16. Investment Advisory and Other Services Management of the
Fund; Investment Advisory and Other Services; Distributor
17. Brokerage Allocation Portfolio Transactions
18. Capital Stock and Other Securities Organization of the
Trust
19. Purchase, Redemption and Pricing of Purchase of
Shares; Redemption
Securities Being Offered of Shares; Exchange of Shares;
Net Asset Value Determination
20. Tax Status Additional Information Concerning Taxes
21. Underwriters Distributor
22. Calculation of Performance Data Performance Calculations
23. Financial Statements Financial Statements
PANORAMA TRUST
PROSPECTUS SUPPLEMENT DATED JULY 22, 1996
(Supplement to Prospectus dated January 2, 1996)
The following is inserted on page 2 of the Prospectus
following "Expenses of the Fund":
FINANCIAL HIGHLIGHTS
For a Fund share outstanding throughout the period
Pictet
International Small Companies Fund
Period Ended
5/31/96*
(Unaudited)
Net asset value, beginning of period $ 100.00
Income from investment operations:
Net investment income 0.41
Net realized and unrealized gain on investments 6.53
Total from investment operations 6.94
Net asset value, end of period $106.94
Total return++ 6.94%
Ratios to average net assets/supplemental data:
Net assets, end of period (in 000's) $26,767
Ratio of operating expenses to average daily net assets
1.20%+
Ratio of operating expenses to average daily net assets
without waivers and reimbursements 3.24%+
Ratio of net investment income to average daily net assets
1.50%+
Net investment loss per share without waivers and
reimbursements ($0.15)
Portfolio turnover rate 20%
Average commission rate (per share of security)(a)
$0.0138
_______________________
*The Fund commenced operations on February 7, 1996.
+ Annualized.
++ Total return represents aggregate total return for the period.
(a) Average commission rate paid per share of securities purchased
and sold by the Fund.
Dated: July 22, 1996
PICTET INTERNATIONAL SMALL COMPANIES FUND
One Exchange Place Boston, Massachusetts 02109
Prospectus - January 2, 1996
Panorama Trust, a Massachusetts business trust (the
"Trust"), is a no-load, diversified, open-end management
investment company which currently offers shares of two series,
one of which is the Pictet International Small Companies Fund (the
"Fund"). The investment objective of the Fund is to provide long-
term growth of capital. The Fund seeks to achieve this objective
by investing primarily in equity securities of companies located
outside the United States with small market capitalizations. The
net asset value of the Fund will fluctuate. Shares of the Fund
are subject to investment risks, including the possible loss of
principal.
This Prospectus, which should be retained for future
reference, sets forth certain information that you should know
before you invest. A Statement of Additional Information ("SAI")
containing additional information about the Fund has been filed
with the Securities and Exchange Commission. The SAI, dated
January 2, 1996, as amended or supplemented from time to time, is
incorporated by reference into this Prospectus. A copy of the SAI
may be obtained, without charge, by calling the Trust at 514-288-
0253.
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.
EXPENSES OF THE FUND
The following table illustrates the expenses and fees
expected to be incurred by the Fund for the current fiscal year.
Shareholder Transaction Expenses
Sales Load Imposed on Purchases NONE
Sales Load Imposed on Reinvested Dividends NONE
Deferred Sales Load NONE
Redemption Fees NONE
Exchange Fees NONE
Annual Fund Operating Expenses
(as a percentage of average net assets)
Investment Advisory Fees (after waiver)* .80%
Other Expenses .40%
Total Operating Expenses (after waiver)* 1.20%
_________________________________
* The Investment Adviser has voluntarily agreed to waive its
fees to the extent necessary to assure that the total ordinary
operating expenses do not exceed 1.20% of the Fund's average daily
net assets. Without such voluntary waiver, investment
advisory fees and total operating expenses would be 1.00% and
1.40% of the Fund's average daily net assets, respectively.
The purpose of the above table is to assist an investor in
understanding the various estimated costs and expenses that an
investor in the Fund will bear directly or indirectly. "Other
Expenses" is based on estimated amounts for the current fiscal
year. Actual expenses may be greater or less than such estimates.
For further information concerning the Fund's expenses see
"Investment Adviser" and "Administrative Services."
The following example illustrates the estimated expenses
that an investor in the Fund would pay on a $1,000 investment over
various time periods assuming (i) a 5% annual rate of return and
(ii) redemption at the end of each time period. As noted in the
above table, the Fund charges no redemption fees of any kind.
1 Year 3 Years
$12 $38
THIS EXAMPLE SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES OR PERFORMANCE. THE ABOVE FIGURES ARE ESTIMATES
ONLY. ACTUAL EXPENSES MAY BE GREATER OR LESSER THAN THOSE SHOWN.
INVESTMENT OBJECTIVE AND POLICIES
The investment objective of the Fund is to provide long-term
growth of capital. The Fund seeks to achieve this objective by
investing primarily in equity securities of companies located
outside the United States ("U.S.") with small market
capitalizations. Under normal conditions at least 65% of the
Fund's total assets will be invested in equity securities of
smaller capitalization companies (i.e., companies with individual
market capitalization below $1 billion at time of investment)
located in at least three countries other than the U.S. "Equity
securities," as used in this Prospectus, refers to common stock,
preferred stock, investment company shares, convertible
securities, warrants or rights to subscribe to or purchase such
securities, American Depositary Receipts ("ADRs"), European
Depositary Receipts ("EDRs") and Global Depositary Receipts
("GDRs").
The Fund will invest primarily in securities of issuers
whose market capitalizations would place them (at the time of
purchase) in the same size range as companies in approximately the
lowest 20% by total market capitalization of companies that have
equities listed on a U.S. national securities exchange or traded
in the NASDAQ system. Based on recent U.S. share prices, these
companies will typically have individual market capitalizations
below $1 billion (although the Fund will be allowed to invest in
larger capitalization companies that satisfy the Fund's size
standard). Because the Fund is permitted to apply the U.S. size
standard on an international basis, it may invest in companies
that might rank above the lowest 20% by total market
capitalization in local markets and, in fact, might in some
countries rank among the largest companies in terms of
capitalization. Determinations as to eligibility will be made by
the Fund's Adviser, Pictet International Management Limited (the
"Adviser"), based on publicly available information and inquiries
made to the companies. See "Risk Factors" for a discussion of the
nature of information publicly available for non-U.S. companies.
The Adviser will determine the amount of the Fund's assets
to be invested in each country and the markets within that
country. Such allocations will be based on its assessment of where
opportunities for long-term capital growth are expected to be most
attractive. When making this determination, the Adviser will
evaluate key factors such as current liquidity, capacity
constraints, direction of interest rates and market valuations.
The Adviser will invest in quality, growth-oriented smaller
companies while maintaining a diversified approach to reduce stock
specific risk. The Adviser employs a "top-down" approach in its
assessment of countries, regions and currencies, but it is
essentially driven by the "bottom-up" approach in stock selection.
Generally, such stock selection is based on the Adviser's
proprietary data base of approximately 4,000 companies and
comprehensive universe of about 10,000 companies, in more than 40
different countries, and company visits by research analysts and
investment managers. The Adviser utilizes a proprietary model to
determine asset/country allocation which includes variables such
as macroeconomic factors and general equity and fixed income
valuation measures. In the search for quality smaller company
stocks that are relatively inexpensive, the key criteria are
strong balance sheets, surplus net income, profitability ratios
above market/sector average and reasonable valuations.
The Adviser believes that investing internationally in
smaller company stocks can, over the long-term, produce superior
returns but with increased risks. See " Risk Factors" for a
discussion of these risks. Small capitalization stocks often have
sales and earnings growth rates which exceed those of larger
companies, and such growth rates may in turn result in more rapid
share price appreciation. Investors should be aware that although
the Fund diversifies across more investment types than most mutual
funds, no one mutual fund can provide a complete investment
program for all investors. There can be no assurance that the Fund
will achieve its investment objective.
The Fund may invest up to 35% of its total assets in equity
securities which do not meet its small company criteria and in
debt securities (defined as bonds, notes, debentures, commercial
paper, certificates of deposit, time deposits and bankers'
acceptances) which are rated at least Baa by Moody's Investors
Services, Inc.'s ("Moody's") or BBB by Standard & Poor's Ratings
Group ("S&P") or are unrated debt securities deemed to be of
comparable quality by the Adviser. Securities with the lowest
rating in the investment grade category (i.e., Baa by Moody's or
BBB by S&P) are considered to have some speculative
characteristics and are more sensitive to economic change than
higher rated securities. Certain debt securities can provide the
potential for long-term growth of capital based on various factors
such as changes in interest rates, economic and market conditions,
improvement in an issuer's ability to repay principal and pay
interest, and ratings upgrades. Additionally, convertible bonds
can provide the potential for long-term growth of capital through
the conversion feature, which enables the holder of the bond to
benefit from increases in the market price of the securities into
which they are convertible. However, there can be no assurances
that debt securities or convertible bonds will provide long-term
growth of capital.
When deemed appropriate by the Adviser, the Fund may invest
cash balances in repurchase agreements and other money market
investments to maintain liquidity in an amount to meet expenses or
for day-to-day operating purposes. These investment techniques
are described below and under the heading "Investment Objective
and Policies" in the SAI. When the Adviser believes that market
conditions warrant, the Fund may adopt a temporary defensive
position and may invest without limit in high-quality money market
securities denominated in U.S. dollars or in the currency of any
foreign country. See "Investment Techniques-Temporary
Investments."
In addition, the Fund may enter into forward foreign
currency exchange contracts and reverse repurchase agreements and
may utilize forward foreign currency exchange contracts as a hedge
against changes resulting from market conditions and exchange
rates.
INVESTMENT TECHNIQUES
Temporary Investments. As determined by the Adviser, when
market conditions warrant, the Fund may invest up to 100% of its
total assets in the following high-quality (that is, rated Prime-1
by Moody's or A-1 or better by S&P or, if unrated, of comparable
quality as determined by the Adviser) money market securities,
denominated in U.S. dollars or in the currency of any foreign
country, issued by entities organized in the United States or any
foreign country; short-term (less than twelve months to maturity)
and medium-term (not greater than five years to maturity)
obligations issued or guaranteed by the U.S. Government or the
governments of foreign countries, their agencies or
instrumentalities; finance company and corporate commercial paper,
and other short-term corporate obligations; obligations (including
certificates of deposit, time deposits and bankers' acceptances)
of banks; and repurchase agreements with banks and broker-dealers
with respect to such securities.
Repurchase Agreements. The Fund may enter into repurchase
agreements with qualified brokers, dealers, banks and other
financial institutions deemed creditworthy by its Adviser. In a
repurchase agreement, the Fund purchases a security and
simultaneously commits to resell that security at a future date to
the seller (a qualified bank or securities dealer) at an agreed
upon price plus an agreed upon market rate of interest (itself
unrelated to the coupon rate or date of maturity of the purchased
security). Under normal circumstances, however, the Fund will not
enter into repurchase agreements if entering into such agreements
would cause, at the time of entering into such agreements, more
than 20% of the value of its total assets to be subject to
repurchase agreements. Under the Investment Company Act of 1940,
as amended (the "1940 Act"), repurchase agreements are considered
to be loans collateralized by the underlying securities. The Fund
would generally enter into repurchase transactions to invest cash
reserves and for temporary defensive purposes. Delays or losses
could result if the other party to the agreement defaults or
becomes insolvent.
Reverse Repurchase Agreements. The Fund may enter into
reverse repurchase agreements. In a reverse repurchase agreement
the Fund sells a security and simultaneously commits to repurchase
that security at a future date from the buyer. In effect, the Fund
is temporarily borrowing funds at an agreed upon interest rate
from the purchaser of the security, and the sale of the security
represents collateral for the loan. The use of reverse repurchase
agreements involves certain risks. For example, the other party to
the agreement may default on its obligation or become insolvent
and unable to deliver the securities to the Fund at a time when
the value of the securities has increased. Reverse repurchase
agreements also involve the risk that the Fund may not be able to
establish its right to receive the underlying securities.
"When Issued," "Delayed Settlement," and "Forward Delivery"
Securities. The Fund may purchase and sell securities on a "when
issued," "delayed settlement" or "forward delivery" basis. "When
issued" or "forward delivery" refers to securities whose terms and
indenture are available and for which a market exists, but which
are not available for immediate delivery. When issued or forward
delivery transactions may be expected to occur one month or more
before delivery is due. Delayed settlement is a term used to
describe settlement of a securities transaction in the secondary
market which will occur sometime in the future. No payment or
delivery is made by the Fund in a when issued, delayed settlement
or forward delivery transaction until the Fund receives payment or
delivery from the other party to the transaction. The Fund will
maintain a separate account of cash or liquid high grade debt
obligations at least equal to the value of purchase commitments
until payment is made. Such segregated securities will either
mature or, if necessary, be sold on or before the settlement date.
Although the Fund receives no income from the above described
securities prior to delivery, the market value of such securities
is still subject to change.
The Fund will engage in when issued transactions to obtain
what is considered to be an advantageous price and yield at the
time of the transaction. When the Fund engages in when issued,
delayed settlement or forward delivery transactions, it will do so
for the purpose of acquiring securities consistent with its
investment objective and policies and not for the purposes of
speculation. The Fund's when issued, delayed settlement and
forward delivery commitments are not expected to exceed 25% of its
total assets absent unusual market circumstances, and the Fund
will only sell securities on such a basis to offset securities
purchased on such a basis.
Borrowing. As a temporary measure for extraordinary or
emergency purposes, the Fund may borrow money from banks.
However, the Fund will not borrow money for speculative purposes.
Depositary Receipts. The Fund may purchase sponsored or
unsponsored ADRs, EDRs and GDRs (collectively, "Depositary
Receipts"). ADRs are typically issued by a U.S. bank or trust
company and evidence ownership of underlying securities issued by
a foreign corporation. EDRs and GDRs are typically issued by
foreign banks or trust companies, although they also may be issued
by U.S. banks or trust companies, and evidence ownership of
underlying securities issued by either a foreign or a United
States corporation. For purposes of the Fund's investment
policies, the Fund's investments in Depositary Receipts will be
deemed to be investments in the underlying securities.
Privatizations. The Fund may invest in privatizations. The
Fund believes that foreign government programs of selling
interests in government-owned or controlled enterprises
("privatizations") may represent opportunities for significant
capital appreciation. The ability of U.S. entities, such as the
Fund, to participate in privatizations may be limited by local
law, or the terms for participation may be less advantageous than
for local investors. There can be no assurance that privatization
programs will be available or successful.
Illiquid Securities. The Fund will not invest more than 15%
of its net assets in securities that are illiquid as determined by
the Adviser under the supervision of the Board of Trustees. An
illiquid security is one which may not be sold or disposed of in
the ordinary course of business within seven days at approximately
the value at which the Fund has valued the security.
Investment Companies. The Fund may invest up to 10% of its
total assets in shares of other investment companies investing in
securities in which it may otherwise invest. Because of
restrictions on direct investment by U.S. entities in certain
countries, other investment companies may provide the most
practical or only way for the Fund to invest in certain markets.
Such investments may involve the payment of substantial premiums
above the net asset value of those investment companies' portfolio
securities and are subject to limitations under the 1940 Act. In
addition to the advisory fees and other expenses that the Fund
bears directly in connection with its own operations, as a
shareholder of another investment company, the Fund would bear its
"pro rata" portion of the other investment company's advisory fees
and other expenses. Therefore, to the extent that the Fund
invests in shares of other investment companies, the Fund's
shareholders will be subject to expenses of such other investment
companies, in addition to expenses of the Fund. The Fund also may
incur a tax liability to the extent it invests in the stock of a
foreign issuer that is a "passive foreign investment company"
regardless of whether such "passive foreign investment company"
makes distributions to the Fund. See the SAI for further
information.
Forward Foreign Currency Exchange Contracts. A forward
foreign currency exchange contract (a "forward contract") is
individually negotiated and privately traded by currency traders
and their customers and creates an obligation to purchase or sell
a specific currency for an agreed-upon price at a future date.
The Fund normally conducts its foreign currency exchange
transaction either on a spot (i.e., cash) basis at the spot rate
in the foreign currency exchange market at the time of the
transaction, or through entering into forward contracts to
purchase or sell foreign currencies at a future date. The Fund
generally does not enter into forward contracts with terms greater
than one year. The Fund will maintain a segregated account
consisting of cash or liquid high grade debt securities in an
amount equal to the value of currency that the Fund is required to
purchase under a forward contract.
The Fund generally enters into forward contracts only under
two circumstances. First, if the Fund enters into a contract for
the purchase or sale of a security denominated in a foreign
currency, it may desire to "lock in" the U.S. dollar price of the
security by entering into a forward contract to buy the amount of
a foreign currency needed to settle the transaction. Second, if
the Adviser believes that the currency of a particular foreign
country will substantially rise or fall against the U.S. dollar,
it may enter into a forward contract to buy or sell the currency
approximating the value of some or all of the Fund's portfolio
securities denominated in such currency. The Fund may engage in
cross-hedging by using forward contracts in one currency to hedge
against fluctuations in the value of securities denominated in a
different currency if the Adviser determines that there is a
pattern of correlation between the two currencies. Although
forward contracts are used primarily to protect the Fund from
adverse currency movements, they involve the risk that currency
movements will not be accurately predicted which could cause a
loss to the Fund.
Except as specified on the preceding pages and as described
under "Investment Limitations" in the SAI, the Fund's investment
objective and policies are not fundamental, and the Board may
change such objective and policies without shareholder approval.
RISK FACTORS
All investments involve risk and there can be no guarantee
against loss resulting from an investment in the Fund, nor can
there be any assurance that the Fund's investment objective will
be attained. As with any investment in securities, the value of,
and income from, an investment in the Fund can decrease as well as
increase, depending on a variety of factors which may affect the
values and income generated by the Fund's securities, including
general economic conditions, market factors and currency exchange
rates. An investment in the Fund is not intended as a complete
investment program.
Small Companies. While small companies may present greater
opportunities for capital appreciation, they may also involve
greater risks than larger, more mature issuers. The securities of
small market capitalization companies may be more sensitive to
market changes than the securities of large companies. In
addition, smaller companies may have limited product lines,
markets or financial resources and they may be dependent on one-
person management. Further, their securities may trade less
frequently and in more limited volume than those of larger, more
mature companies. As a result, the prices of the securities of
such smaller companies may fluctuate to a greater degree than the
prices of the securities of other issuers.
Foreign Securities. The Fund may purchase securities of
issuers located in any foreign country, consistent with its
investment objective. Investors should consider carefully the
substantial risks involved in investing in securities issued by
companies and governments of foreign nations, which are in
addition to the usual risks inherent in domestic investments.
Investing in the securities of foreign companies involves special
risks and considerations not typically associated with investing
in U.S. companies. These risks and considerations include
differences in accounting, auditing and financial reporting
standards, generally higher commission rates on foreign portfolio
transactions, the possibility of expropriation or confiscatory
taxation, adverse changes in investment or exchange control
regulations, political instability which could affect U.S.
investment in foreign countries and potential restrictions on the
flow of international capital. Moreover, the dividend or interest
income or gain from the Fund's foreign portfolio securities may be
subject to foreign withholding or other foreign taxes, thus
reducing the net amount of income available for distribution to
the Fund's shareholders. Further, foreign securities often trade
with less frequency and volume than domestic securities and,
therefore, may exhibit greater price volatility. Also, changes in
foreign exchange rates will affect, favorably or unfavorably, the
value of those securities in the Fund's portfolio which are
denominated or quoted in currencies other than the U.S. dollar.
In addition, in many countries there is less publicly available
information about issuers than is available in reports about
companies in the United States. Foreign companies are not
generally subject to uniform accounting, auditing and financial
reporting standards, and auditing practices and requirements may
not be comparable to those applicable to U.S. companies. Further,
the Fund may encounter difficulties or be unable to pursue legal
remedies and obtain judgments in foreign courts.
There are additional risk factors, including possible losses
through the holding of securities in domestic and foreign
custodian banks and depositories, described elsewhere in the
Prospectus under Investment Techniques - Repurchase Agreements,
Reverse Repurchase Agreements, "When Issued", "Delayed Settlement"
and "Forward Delivery" Securities, and Forward Foreign Currency
Exchange Contracts and under Foreign Investments in the SAI.
PURCHASE OF SHARES
Shares of the Fund are sold without a sales commission on a
continuous basis to the Adviser (or its affiliates) or to other
institutions (the "Institutions") acting on behalf of the
Institution's or an affiliate's clients, at the net asset value
per share next determined after receipt of the purchase order by
the transfer agent. See "Valuation of Shares." The minimum initial
investment for the Fund is $100,000; the minimum for subsequent
investments for the Fund is $10,000. The Fund reserves the right
to reduce or waive the minimum initial and subsequent investment
requirements from time to time. Beneficial ownership of shares
will be reflected on books maintained by the Adviser or the
Institutions. A prospective investor wishing to purchase shares in
the Fund should contact the Adviser or his or her Institution.
Purchase orders for shares are accepted only on days on
which both the Adviser and the Federal Reserve Bank of New York
are open for business. It is the responsibility of the Adviser or
Institution to transmit orders for shares purchased to First Data
Investor Services Group, Inc. ("FDISG"), the Fund's transfer
agent, and deliver required funds to Brown Brothers Harriman &
Co., the Fund's custodian, on a timely basis. Payment for Fund
shares must be made in federal funds immediately available to
Brown Brothers Harriman & Co. by 12:00 noon Eastern time on the
day after the purchase order is received by the transfer agent.
Shareholders should contact the Adviser for appropriate
purchase/wire procedures.
The Trust and its distributor reserve the right, in their
discretion, to suspend the offering of shares of the Fund or
reject purchase orders when, in the judgment of management, such
suspension or rejection is in the best interests of the Fund.
Purchases of the Fund's shares will be made in full and fractional
shares of the Fund calculated to three decimal places. In the
interest of economy and convenience, certificates for shares will
not be issued.
General. The issuance of shares is recorded on the books of
the Trust. The transfer agent will send to each shareholder of
record a statement of shares of the Fund owned after each purchase
or redemption transaction relating to such shareholder. Neither
the distributor, Adviser nor the Institutions are permitted to
withhold placing orders to benefit themselves by a price change.
REDEMPTION OF SHARES
Shares of the Fund may be redeemed at any time, without
cost, at the net asset value of the Fund next determined after
receipt of the redemption request by the transfer agent. The net
asset value of redeemed shares may be more or less than the
purchase price of the shares depending on the market value of the
investment securities held by the Fund. An investor wishing to
redeem shares should contact the Adviser or his or her
Institution. No charge is made by the Fund for redemptions. It
is the responsibility of the Adviser or Institution to transmit
promptly redemption orders to the transfer agent.
Payment of the redemption proceeds will ordinarily be made
by wire within one business day, but in no event more than three
business days, after receipt of the order in proper form by the
transfer agent. The Fund may suspend the right of redemption or
postpone the date of payment at times when the New York Stock
Exchange (the "Exchange") is closed, or under any emergency
circumstances as determined by the Securities and Exchange
Commission (the "Commission"). See "Valuation of Shares" for the
days on which the Exchange is closed.
If the Board determines that it would be detrimental to the
best interests of the remaining shareholders of the Fund to make
payment wholly or partly in cash, the Fund may pay the redemption
proceeds in whole or in part by a distribution in kind of
securities held by the Fund in lieu of cash in conformity with
applicable rules of the Commission. Investors may incur brokerage
charges on the sale of portfolio securities received as a
redemption in kind.
The Fund reserves the right, upon 30 days' written notice,
to redeem an account in the Fund if the net asset value of the
account's shares falls below $100,000 because of redemptions and
is not increased to at least such amount within such 30-day
period.
EXCHANGE OF SHARES
Shareholders may exchange shares of the Fund for shares of
other series of the Trust based on the relative net asset values
per share of the series at the time the exchange is effected.
Currently, shares of the Fund may be exchanged for shares of
Pictet Global Emerging Markets Fund. No sales charge or other fee
is imposed in connection with exchanges. Before requesting an
exchange, shareholders should obtain and read the prospectus of
the series whose shares will be acquired in the exchange.
Prospectuses can be obtained by calling the Trust at (514) 288-
0253.
All exchanges are subject to applicable minimum initial and
subsequent investment requirements of the series whose shares will
be acquired. In addition, an exchange is permitted only between
accounts that have identical registrations. Shares of a series
may be acquired in an exchange only if the shares are currently
being offered and are legally available for sale in the state of
the shareholder's residence.
An exchange involves the redemption of shares of the Fund
and the purchase of shares of another series. Shares of the Fund
will be redeemed at the net asset value per share of the Fund next
determined after receipt of an exchange request in proper form.
Shareholders that are not exempt from taxation may realize a
taxable gain or loss in an exchange transaction. See "Dividends,
Capital Gains Distributions and Taxes."
A shareholder wishing to exchange shares of the Fund should
contact the Adviser or his or her Institution. The exchange
privilege may be modified or terminated at any time subject to
shareholder notification. The Trust reserves the right to limit
the number of times an investor may exercise the exchange
privilege.
VALUATION OF SHARES
The net asset value of the Fund is determined by dividing
the total market value of its investments and other assets, less
any of its liabilities, by the total outstanding shares of the
Fund. The Fund's net asset value per share is determined as of
the close of regular trading on the Exchange on each day that the
Adviser and Exchange is open for business and the Fund receives an
order to purchase, exchange or redeem its shares. Currently the
Exchange is closed on weekends and the customary national business
holidays of New Year's Day, Presidents' Day, Good Friday, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day and Christmas
Day (or the days on which they are observed).
Equity securities listed on a U.S. securities exchange for
which market quotations are available are valued at the last
quoted sale price as of the close of the Exchange's regular
trading hours on the day the valuation is made. Generally,
securities listed on a foreign exchange and unlisted foreign
securities are valued at the latest quoted sales price available
before the time when assets are valued. Portfolio securities
primarily traded on the London Stock Exchange are generally valued
at the mid-price between the current bid and asked prices. Price
information on listed securities is taken from the exchange where
the security is primarily traded. Unlisted U.S. equity securities
and listed securities not traded on the valuation date for which
market quotations are readily available are valued at the mean
between the asked and bid prices. The value of securities for
which no quotations are readily available (including restricted
securities) is determined in good faith at fair value using
methods determined by the Board. Foreign currency amounts are
translated into U.S. dollars at the bid prices of such currencies
against U.S. dollars last quoted by a major bank. One or more
pricing services may be used to provide securities valuations in
connection with the determination of the net asset value of the
Fund. Short term investments that mature in 60 days or less are
valued at amortized cost.
DIVIDENDS, CAPITAL GAIN DISTRIBUTIONS AND TAXES
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS
The Fund normally will distribute at least annually to
shareholders substantially all of its net investment income and
any net realized capital gains. Undistributed net investment
income is included in the Fund's net assets for the purpose of
calculating net asset value per share. Therefore, on the Fund's
"ex-dividend" date, the net asset value per share excludes the
dividend (i.e., is reduced by the per share amount of the
dividend). Dividends paid shortly after the purchase of shares of
the Fund by an investor, although in effect a return of a portion
of the purchase price, are taxable to the investor. Dividends or
distributions will automatically be reinvested in additional
shares of the Fund at net asset value next determined after the
dividend is declared.
FEDERAL TAXES
The Fund intends to qualify each year as a "regulated
investment company" under the Internal Revenue Code of 1986, as
amended (the "Code"). Such qualification generally relieves the
Fund of liability for Federal income taxes to the extent its
earnings are distributed in accordance with the Code.
Qualification as a regulated investment company under the
Code for a taxable year requires, among other things, that the
Fund distribute to its shareholders an amount at least equal to
90% of its investment company taxable income and 90% of its net
tax-exempt interest income (if any) for such taxable year. In
general, the Fund's investment company taxable income will be its
net investment income, including interest and dividends, subject
to certain adjustments, certain net foreign currency gains, and
any excess of its net short-term capital gain over its net long-
term capital loss, if any, for such year. The Fund intends to
distribute as dividends substantially all of its investment
company taxable income each year. Such dividends will be taxable
as ordinary income to the Fund's shareholders who are not exempt
from Federal income taxes, whether such income or gain is received
in cash or reinvested in additional shares. Subject to the
limitations prescribed in the Code, the dividends received
deduction for corporations will apply to such ordinary income
distributions only to the extent they are attributable to
qualifying dividends received by the Fund from domestic
corporations for the taxable year. It is anticipated that only a
small part (if any) of the dividends paid by the Fund will be
eligible for the dividends received deduction.
Substantially all of the Fund's net long-term capital gain,
if any, in excess of its net short-term capital loss will be
distributed at least annually to its shareholders. The Fund
generally will have no tax liability with respect to such gains
and the distributions will be taxable to the shareholders who are
not exempt from Federal income taxes as long-term capital gains,
regardless of how long the shareholders have held the shares and
whether such gains are received in cash or reinvested in
additional shares.
The impact of dividends or distributions which are expected
to be declared or have been declared, but not paid, should be
carefully considered prior to purchasing such shares. Any
dividend or distribution paid shortly after a purchase of shares
prior to the record date will have the effect of reducing the per
share net asset value by the per share amount of the dividend or
distribution. All or a portion of such dividend or distribution,
although in effect a return of a portion of the purchase price, is
subject to tax. A taxable gain or loss may be realized by a
shareholder upon redemption, exchange or transfer of shares of the
Fund, depending upon the tax basis of such shares and their value
at the time of redemption, exchange or transfer.
It is expected that dividends, certain interest income and
possibly certain capital gains earned by the Fund from foreign
securities will be subject to foreign withholding taxes or other
foreign taxes. If more than 50% of the value of the Fund's total
assets at the close of any taxable year consists of equity or debt
securities of foreign corporations, the Fund may elect, for U.S.
Federal income tax purposes, to treat certain foreign taxes paid
by it, including generally any withholding taxes and other foreign
income taxes, as paid by its shareholders. If the Fund makes this
election, the amount of such foreign taxes paid by the Fund will
be included in its shareholders' income pro rata (in addition to
taxable distributions actually received by them), and each
shareholder who is subject to tax will generally, subject to
certain limitations under the Code, be entitled (a) to credit a
proportionate amount of such taxes against U.S. Federal income tax
liabilities, or (b) if deductions are itemized, to deduct such
proportionate amount from U.S. income.
Miscellaneous. Dividends declared in October, November or
December of any year payable to shareholders of record on a
specified date in such a month will be deemed to have been
received by the shareholders and paid by the Fund on December 31,
in the event such dividends are paid during January of the
following year.
A 4% nondeductible excise tax is imposed under the Code on
regulated investment companies that fail to currently distribute
for each calendar year specified percentages of their ordinary
taxable income and capital gain net income (excess of capital
gains over capital losses) earned in specified periods. The Fund
expects that it will generally make sufficient distributions or
deemed distributions of its ordinary taxable income and any
capital gain net income for each calendar year to avoid liability
for this excise tax.
The foregoing summarizes some of the important tax
considerations generally affecting the Fund and its shareholders
and is not intended as a substitute for careful tax planning.
Accordingly, potential investors in the Fund should consult their
tax advisers with specific reference to their own tax situations.
The foregoing discussion of tax consequences is based on tax
laws and regulations in effect on the date of this Prospectus,
which are subject to change.
Shareholders will be advised at least annually as to the
federal income tax consequences of distributions made each year.
The Fund will be required in certain cases to withhold and
remit to the United States Treasury 31% of taxable dividends
(including capital gains distributions) or gross proceeds realized
upon a redemption, exchange or other sale of shares paid to
shareholders who are subject to this "backup withholding" because
they have failed to provide a correct, certified tax payer
identification number in the manner required, have received IRS
Notice of their failure properly to include on their return
payments of taxable interest or dividends, or have failed to
certify to the Fund that they are not subject to backup
withholding when required to do so or that they are "exempt
recipients."
STATE AND LOCAL TAXES
Shareholders may also be subject to state and local or
foreign taxes on distributions from, or the value of an investment
in, the Fund. A shareholder should consult with a tax adviser
with respect to the tax status of an investment in or
distributions from the Fund in a particular state, locality or
other jurisdiction that may impose tax on the shareholder.
MANAGEMENT OF THE FUND
The Board of Trustees has overall responsibility for the
management of the Fund under the laws of the Commonwealth of
Massachusetts governing the responsibilities of trustees of
business trusts. The SAI identifies and provides information
about the Trustees and officers of the Trust.
INVESTMENT ADVISER
The Trust, on behalf of the Fund, has entered into an
investment advisory agreement with Pictet International Management
Limited. Subject to the control and supervision of the Trust's
Board and in conformance with the stated investment objective and
policies of the Fund, the Adviser manages the investment and
reinvestment of the assets of the Fund. The Adviser's advisory and
portfolio transaction services also include making investment
decisions for the Fund, placing purchase and sale orders for
portfolio transactions and employing professional portfolio
managers and security analysts who provide research services to
the Fund. The Adviser is entitled to receive from the Fund for
its investment services a fee, computed daily and payable monthly,
at the annual rate of 1.00% of the average daily net assets of the
Fund. The Adviser has voluntarily agreed to reduce its fees to
the extent necessary to assure that the total operating expenses
of the Fund will not exceed 1.20% of the average daily net assets
of the Fund. The aggregate fees paid to the Fund's Adviser are
higher than advisory fees paid by most other U.S. investment
companies. The Fund's Board believes such fees are comparable to
those paid by other similar funds.
The Adviser is an affiliate of Pictet & Cie (the "Bank"), a
Swiss private bank, which was founded in 1805. As of December 31,
1995, the Bank managed in excess of $45 billion for institutional
and private clients. The Bank is owned by seven partners. The
Adviser was established in 1980 and manages institutional
investment funds with a particular emphasis on the investment
needs of U.S. and international institutional clients seeking to
invest in the international fixed income and equity markets.
Registered with the Commission in 1981 and regulated by the
Investment Management Regulatory Organisation, the Adviser's
London office has managed international portfolios for U.S. tax-
exempt clients since 1981 and U.K. pension funds since 1984. The
Adviser currently manages approximately $4 billion for more than
50 accounts.
The Fund is managed by the following individuals:
Jonathan Neill is a Senior Investment Manager having joint
responsibility for worldwide smaller companies and emerging
markets investment, with Mr. Polunin. Prior to joining the
Adviser in 1990, Mr. Neill worked for two years with Mercury Asset
Management as an investment manager with specific responsibility
for specialist international funds. He also spent three years
managing U.K. and International Growth Funds with Oppenheimer Fund
Management.
Douglas Polunin is a Senior Investment Manager with joint
responsibility for worldwide smaller companies and emerging
markets investment, working with Jonathan Neill. Prior to joining
the Adviser in 1989, Mr. Polunin spent two and a half years with
the Union Bank of Switzerland in London, where he was in charge of
the Discretionary Portfolio Management section. Before this, he
spent four years as an Equity Analyst with UBS in Switzerland.
Richard Yarlott is a Senior Investment Manager within the
small companies and emerging markets team. His main
responsibilities currently include asset allocation in emerging
markets and securities analysis on an international basis. Prior
to joining the Adviser in 1994, Mr. Yarlott worked for over ten
years in banking, strategic consulting and private investment. In
1985 he joined JP Morgan where he worked in Structured Finance and
M & A roles until 1990. He spent two years as a principal in a
private investment company, and subsequently worked for Marakon
Associates, a value-based consulting firm.
Yves Kuhn is an Investment Manager within the smaller
companies and emerging markets team. His main focus is on smaller
companies and emerging markets within Eastern Europe. Prior to
joining the Adviser in 1994, Mr. Kuhn spent three years in
consultancy, essentially concerned with the restructuring and cost
saving programs of major utility and consumer goods companies.
Richard Ormond is an Investment Manager in the smaller
companies and emerging markets team. After joining the Bank in
1990 he spent two years in Geneva with responsibility for European
Indexed Funds and performance analysis for the Strategic
Investment Committee. He joined the Adviser's office in 1992 and
is currently responsible for the Adviser's proprietary database,
analyzing smaller companies and emerging markets.
ADMINISTRATIVE SERVICES
FDISG serves as the Trust's administrator, accounting agent
and transfer agent and in that capacity supervises the Trust's
day-to-day operations, other than management of the Fund's
investments. FDISG, formerly known as The Shareholder Services
Group, Inc., is a wholly owned subsidiary of First Data
Corporation. For its services as accounting agent, FDISG is
entitled to receive a fee from the Trust computed daily and
payable monthly at the annual rate of .04% of the aggregate
average daily net assets of the Trust, subject to a $50,000 annual
minimum from the Fund. For administrative services, FDISG is
entitled to receive $220,000 per annum from the Trust, allocated
between the Fund and other series of the Trust based on average
daily net assets. In addition, for its services as transfer agent,
FDISG is to be paid separate compensation.
FDISG is located at One Exchange Place, Boston,
Massachusetts 02109.
OTHER SERVICES
Distribution. 440 Financial Distributors, Inc. (the
"Distributor") is the principal underwriter and distributor of
shares of the Fund pursuant to a distribution agreement with the
Trust. The Distributor is located at 290 Donald Lynch Boulevard,
Marlboro, Massachusetts 01752.
Custodian. Brown Brothers Harriman & Co., located at 40
Water Street, Boston, Massachusetts 02109, serves as the custodian
of the Trust's assets.
Independent Accountants. Coopers & Lybrand L.L.P., located
at One Post Office Square, Boston, Massachusetts 02109, serves as
independent accountants for the Trust and will audit its financial
statements annually.
Counsel. Hale and Dorr serves as counsel to the Trust.
EXPENSES
The Fund bears its own operating expenses including: taxes;
interest; miscellaneous fees (including fees paid to Board
members); Commission fees; state Blue Sky qualification fees;
costs of preparing and printing prospectuses and statements of
additional information for regulatory purposes and for
distribution to existing shareholders; amortization of
organizational costs; investment advisory fees; administration
fees; charges of the custodian, any subcustodians and the transfer
and dividend agent; certain insurance premiums; outside auditing,
pricing and legal expenses; costs of shareholders' reports and
meetings; and any extraordinary expenses. The Fund also pays for
brokerage fees and commissions, if any, in connection with the
purchase and sale of its portfolio securities.
As discussed under "Expenses of the Fund," the Adviser has
voluntarily undertaken to waive its fees as may be necessary to
limit total ordinary operating expenses of the Fund to a specified
percentage of the Fund's average daily net assets. The Adviser
may modify or terminate this undertaking at any time.
PERFORMANCE CALCULATIONS
The Fund may advertise or quote total return data from time
to time. Total return will be calculated on an average annual
total return basis, and may also be calculated on an aggregate
total return basis, for various periods. Average annual total
return reflects the average annual percentage change in value of
an investment in the Fund over the measuring period. Aggregate
total return reflects the total percentage change in value over
the measuring period. Both methods of calculating total return
assume that dividends and capital gain distributions made by the
Fund during the period are reinvested in Fund shares.
The Fund may compare its total return to that of other
investment companies with similar investment objectives and to
stock and other relevant indices or to rankings prepared by
independent services or other financial or industry publications
that monitor the performance of mutual funds or investments
similar to the Fund. For example, the total return of the Fund may
be compared to data prepared by Lipper Analytical Services, Inc.,
Morningstar, Micropal, FTA World Medium Small-Cap Ex-U.S. Index
and the International Financial Corporation Composite Index. Total
return and other performance data as reported in national
financial publications such as Money Magazine, Forbes, Barron's,
The Wall Street Journal and The New York Times, or in local or
regional publications, may also be used in comparing the
performance of the Fund.
Performance quotations will represent the Fund's past
performance, and should not be considered as representative of
future results. Since performance will fluctuate, performance
data for the Fund should not be used 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/return for a stated period of time.
Shareholders should remember that performance is generally a
function of the kind and quality of the instruments held in the
Fund, portfolio maturity, operating expenses and market
conditions. Any fees charged by the Adviser or institutions to
their clients will not be included in the Fund's calculations of
total return.
GENERAL INFORMATION
DESCRIPTION OF SHARES AND VOTING RIGHTS
The Trust was organized as a Massachusetts business trust on
May 23, 1995. The Declaration of Trust authorizes the Trustees to
classify and reclassify any unissued shares into one or more
series and classes of shares. Currently, the Trust has two
series, one of which is the Fund. Each series currently has only
one class of shares. The Trust offers shares of beneficial
interest, $.001 par value, for sale to the public. When matters
are submitted for shareholder vote, shareholders of the Fund will
have one vote for each full share owned and proportionate,
fractional votes for fractional shares held. Shares of each series
are entitled to vote separately to approve investment advisory
agreements or changes in fundamental investment policies, but will
vote together on the election of Trustees or selection of
accountants. Under Massachusetts law and the Declaration of Trust,
the Trust is not required and does not currently intend to hold
annual meetings of shareholders for the election of Trustees
except as required under the 1940 Act. There will normally be no
meetings of shareholders for the purpose of electing Trustees
unless less than a majority of the Trustees holding office have
been elected by shareholders, at which time the Trustees then in
office will call a shareholders' meeting for the election of
Trustees. Any Trustee may be removed from office upon the vote of
shareholders holding at least two-thirds of the Trust's
outstanding shares at a meeting called for that purpose. The
Trustees are required to call a meeting of shareholders upon the
written request of shareholders holding at least 10% of the
Trust's outstanding shares. In addition, shareholders who meet
certain criteria will be assisted by the Trust in communicating
with other shareholders in seeking the holding of such meeting.
Shareholder inquiries should be addressed to the Trust at
the address or telephone number stated on the cover page.
REPORTS
Shareholders receive unaudited semi-annual financial
statements and audited annual financial statements.
PICTET INTERNATIONAL SMALL COMPANIES FUND
One Exchange Place
Boston, Massachusetts 02109
Prospectus
Dated January 2, 1996
Investment Adviser Administrator and Transfer Agent
Pictet International Management Limited First Data Investor
Services Group, Inc.
Cutlers Garden One Exchange Place
5 Devonshire Square Boston, MA 02109
London, United Kingdom
EC2M 4LD
Distributor
440 Financial Distributors, Inc.
290 Donald Lynch Boulevard
Marlboro, MA 01752
Table of Contents
Page Page
Expenses of the Fund .. 2 Valuation of Shares
9
Investment Objective and Policies 3 Dividends, Capital
Gain Distributions and Taxes 10
Investment Techniques 4 Management of the Fund
12
Risk Factors 7 Performance Calculations
14
Purchase of Shares 8 General Information
15
Redemption of Shares 8
Exchange of Shares 9
No person has been authorized to give any information or to make
any representations not contained in this Prospectus, or in the
Trust's Statement of Additional Information, 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 the Distributor in
any jurisdiction in which such offering may not lawfully be made.
PART B
The Statement of Additional Information dated January 2, 1996 as
filed with the Securities and Exchange Commission on December 29,
1995 is incorporated by reference.
PANORAMA TRUST
STATEMENT OF ADDITIONAL INFORMATION SUPPLEMENT DATED JULY 22, 1996
(Supplement to Statement of Additional Information dated January
2, 1996)
The following is added after the end of the section entitled
"General Information" on page 17 of the Statement of Additional
Information:
FINANCIAL STATEMENTS
The unaudited financial statements for Pictet International Small
Companies Fund for the period ended May 31, 1996 follow.
July 22, 1996
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Portfolio of Investments
May 31, 1996 - (Unaudited)
Value
Shares
(Note 1)
COMMON STOCKS - 84.5%
Australia - 2.9%
39,205 Aerodata Holdings...................
$36,919
11,080 Caltex Australia Ltd. ..............
43,416
199,046 Crosesus Mining.....................
150,906
40,711 Futuris Corporation Ltd. ...........
50,034
51,020 Herald Resource Ltd. ..............
78,176
56,119 Kingstream Resources+...............
36,724
213,946 Lynas Gold Mines+...................
44,392
18,852 Mount Edon Gold Mines (Australia) Lt
34,603
23,523 Northern Building Society ..........
52,563
68,840 Perseverance Corporation Ltd........
67,574
11,080 Siddons Ramset ....................
48,633
215,626 Titan Resources, Inc.+..............
123,898
767,838
Austria - 0.5%
350 BWT Benchiser Wassertechnik AG .....
44,155
900 Mayer Melnhof.......................
40,305
2,520 Steyer-Daimler Puch AG..............
39,417
123,877
Belgium - 1.5%
2,000 Deceuninck ........................
272,778
280 Tessenderlo Chemie .................
115,372
388,150
Canada - 1.6%
175,230 Black Hawk Mining, Inc.+............
83,154
6,300 Blue Range Resource Corporation+....
49,213
40,401 Breakwater Resources Inc.+ .........
66,364
4,500 Corel Systems Corporation+ .........
55,192
6,500 DY-4 Systems, Inc.+ ...............
51,013
7,960 International Forest Products, Ltd.,
74,384
4,700 Tri-Link Resources Ltd.+............
54,043
433,363
Denmark - 1.1%
350 Cheminova, Class B..................
89,301
480 Hygaea AS, Class B .................
66,950
400 Icopal ............................
95,935
700 Kansas Erhv Berlae, Class B.........
43,460
295,646
Finland - 1.2%
800 Asko Oy, Class A....................
35,775
2,000 Huhtamaki Oy, Class I...............
67,291
3,000 Konescranes International ..........
73,785
5,601 Nokian Tyres........................
73,351
1,789 Tietohdas...........................
81,525
331,727
France - 5.3%
470 Brioche Pasquier SA.................
74,026
500 But SA .............................
32,974
1,035 Compagnie de Fives-Lille ...........
116,037
1,500 De Dietrich et Compagnie............
78,237
700 Deveaux SA..........................
90,699
464 Ecco Travail Temporaire SA..........
41,760
500 Ecia-Equip & Composants Pour........
74,193
750 Europeenne de Propulsion............
91,213
458 Gautier France SA...................
25,630
2,128 Groupe Zannier SA...................
46,849
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Portfolio of Investments - (Continued)
May 31, 1996 - (Unaudited)
Value
Shares
(Note 1)
COMMON STOCKS - (Continued)
France - (Continued)
400 Infogrames Entertainment SA+........
$83,949
2,302 Ingenico............................
31,702
650 Manitou B.F. SA.....................
78,043
1,344 Naf Naf SA+.........................
20,516
605 NRJ SA..............................
79,446
400 Pochet SA...........................
72,621
150 Radiall SA..........................
19,610
650 Rochefortaise Communication ........
28,090
560 Societe Manutan ....................
99,932
900 Sylea...............................
85,889
1,200 Synthelabo..........................
104,277
1,300 Thermador Holding...................
29,272
1,404,965
Germany - 4.6%
224 Andreae-Noris Zahn AG...............
75,035
232 Balcke Durr AG......................
46,324
78 Bankgesellschaft Berlin AG..........
16,906
400 Bausch AG...........................
111,658
1,700 Berentzen Gruppe AG.................
73,695
449 Bijou Brigitte Modische Accessoires 81,395
600 Brilliant AG........................
119,409
200 Cewe Color Holding AG...............
70,936
200 Chemische Werke Brockhues...........
111,921
134 Duerr Beteiligungs AG...............
48,583
1,600 Effeff Fritz Fuss GmbH &Company+.... 87,750
1,000 Leifheit AG ........................
44,335
1,008 SGL Carbon AG.......................
107,255
534 Simona AG ..........................
76,987
179 Vossloh AG..... ....................
61,136
73 Weru AG.............................
26,275
106 Westag & Getalit AG.................
29,241
155 WMF Wuerttembergische Metallwarenfab 32,069
1,220,910
Great Britain - 13.0%
19,000 Admiral Plc.........................
78,962
56,007 Allied Colliods, ORD................
110,300
50,000 Amec, ORD...........................
87,227
3,360 Atlas Converting Equipment..........
39,234
12,658 Berkeley Group Plc..................
115,613
9,703 Bespak Plc..........................
61,089
25,091 British Vita Plc....................
84,043
19,706 Carclo Engineering Group Plc........
94,424
49,042 Castings Plc........................
168,830
21,160 Chemring Group Plc..................
141,095
12,922 Dewhurst Plc, Class A .............
18,435
10,641 Epwin Group Plc.....................
37,292
127,000 Hampton Industries, Inc.+...........
116,194
50,000 Heath (CE)..........................
80,636
16,500 Hicking Pentecost Plc...............
92,112
25,000 Hunting Associates..................
71,332
8,513 James Halstead Group Plc............
52,804
33,684 John Maunders Group.................
110,213
107,117 Keller Group Plc....................
282,381
67,208 Kunick Plc..........................
32,308
38,000 Lloyd Thompson Group, ORD...........
111,371
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Portfolio of Investments - (Continued)
May 31, 1996 - (Unaudited)
Value
Shares (Note
1)
COMMON STOCKS - (Continued)
Great Britain - (Continued)
6,721 Macro 4 Plc, ORD....................
$50,027
7,247 Mayborn Group Plc...................
32,365
10,000 Meyer International.................
65,905
6,161 Micro Focus Group Plc+..............
88,182
2,800 MJ Gleason Group Plc................
37,254
23,601 MTL Instruments Group Plc...........
102,475
39,205 Neotronics Technology Plc...........
35,869
16,308 Oxford Instruments Plc..............
119,616
70,000 Perkins Foods, ORD..................
85,754
11,425 Prism Leisure Corporation Plc.......
24,803
19,103 RCO Holdings Plc....................
79,686
5,601 Redrow Group Plc....................
12,420
40,000 Ricardo Group Plc...................
84,978
93,989 Shanks & McEwan Group, Plc..........
158,866
16,802 Titon Holdings Plc..................
32,569
14,002 Trinity Holdings Plc................
77,515
25,081 Tunstall Group Plc..................
146,627
5,265 Warner Howard Plc...................
19,676
16,580 Wilson Bowden Plc...................
113,384
10,204 Wilson Holdings Plc.................
28,640
13,691 Yorklyde Plc........................
66,664
7,841 Yorkshire Chemicals Plc.............
34,896
3,484,066
Hong Kong - 1.3%
70,000 ASM Pacific Technology .............
63,338
134,000 Chen Hsong Holdings.................
71,882
82,000 Dickson Concepts International, Ltd.
93,805
10,000 Tungtex Holdings ...................
866
314,000 Wo Kee Hong Holdings Ltd. ..........
45,052
240,000 Yue Yuen Industrial Holdings........
58,633
333,576
Ireland - 1.5%
10,036 Ardagh..............................
23,906
92,500 Heiton Holdings Plc.................
152,766
7,642 IAWS Group Plc......................
19,790
33,604 Irish Permanent.....................
206,355
402,817
Italy - 2.8%
18,000 Carraro S.p.A. ....................
93,096
23,000 Falck Acciaierie & Ferriere Lombarde
87,801
15,000 Industrie Zignago, ORD .............
80,594
6,000 Marzotto (Gaetano) & Figli S.p.A. ..
40,443
1,700 Recordati Di Risp ..................
15,095
7,500 Saes Getters Priv...................
192,005
20,000 Saipem..............................
82,052
60,000 Snia BPD S.p.A. ....................
75,830
30,000 Vianini Lavori S.p.A. ..............
69,025
735,941
Japan - 30.2%
2,000 Agro-Kanesho Company................
33,350
1,000 Aichi Bank..........................
91,250
4,000 Aiphone Company.....................
79,670
2,060 Almetax Manufacturing Company ......
22,901
8,000 Amatsuji Steel Ball Manufacturing ..
142,295
4,000 Aoki Marine.........................
27,421
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Portfolio of Investments - (Continued)
May 31, 1996 - (Unaudited)
Value
Shares
(Note 1)
COMMON STOCKS - (Continued)
Japan - (Continued)
4,000 Aomori Bank.........................
$24,790
1,000 Art Life Company, Ltd. ............
15,008
6,300 Asahi Printing & Packing Company ...
105,053
1,000 Bank of Iwate.......................
56,696
15,000 Biofermin Pharmaceutical ...........
166,752
3,000 Biwako Bank.........................
17,564
6,000 Bourbon Corporation.................
50,081
3,000 B-R 31 Ice Cream Company............
35,991
8,000 Charle Company......................
120,061
6,000 Chofu Seisakusho....................
153,411
7,000 Dainippon Shigyo Company, Ltd. ....
55,121
4,800 Daiseki Company, Ltd. .............
128,065
20,000 Daito Bank..........................
89,861
1,000 Daiwa Densetsu Corporation..........
6,763
8,000 Daiwa Rakuda Industry...............
111,168
11,000 Denkyosh Company....................
114,132
6,000 Denny's Japan.......................
211,219
9,000 Denyo Company, Ltd. ................
127,565
1,000 Fuji Glass..........................
13,155
1,700 Fuji Hensokuki Company, Ltd. .......
11,197
5,000 Fukuda Denshi.......................
137,107
3,000 Fukuoka Shuo Bank...................
19,315
13,000 Fukushima Bank......................
54,315
1,000 Getz Brothers.......................
17,138
2,000 Heiwa Paper Company ................
23,160
10,000 Hibiya Engineering .................
117,653
8,000 Higashi Nihon House ................
131,178
14,000 Hokkaido Coca-Cola Bottling Company
198,434
3,000 Horipro.............................
43,633
16,000 Isamu Paint.........................
117,097
1,000 Itec Corporation ...................
12,970
7,000 Japan Digital Laboratory Company....
157,580
3,000 Jastec..............................
45,301
2,000 Kagawa Bank.........................
20,010
9,000 Key Coffee Inc. ...................
141,739
1,000 Kita-Nippon Bank....................
56,418
10,000 Kyoto Tool .........................
74,390
1,000 Levi Strauss Japan..................
18,667
3,000 Matsudo Kousan......................
36,685
1,000 Matsumoto Yushi-Seiyaku Company.....
24,642
7,000 Meitec..............................
150,447
26,000 Meiwa Industry .....................
151,744
3,000 Michinoku Bank......................
25,291
5,000 Nagawa Company, Ltd. ...............
84,765
18,000 Nakakita Seisakusho.................
91,713
16,000 NHK Precision Company...............
115,763
6,000 Nichiden Corporation ...............
158,414
5,000 Nihon Decoluxe .....................
74,112
14,000 Nihon Electric Wire & Cable.........
125,805
15,000 Nippon Cable System.................
152,856
5,000 Nippon Filing Company, Ltd. .......
75,270
10,000 Nissei Industries ..................
122,285
9,000 Odawara Engineering Company.........
135,903
9,000 Oita Bank ..........................
78,373
6,000 Ricoh Elemex .......................
89,490
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Portfolio of Investments - (Continued)
May 31, 1996 - (Unaudited)
Value
Shares
(Note 1)
COMMON STOCKS - (Continued)
Japan - (Continued)
12,000 Riken Corundum ....................
$54,472
5,000 Ryoyo Electro Corporation...........
113,947
7,700 Santen Pharmaceutical Company.......
182,612
14,000 Sanyo Engineering & Construction....
159,526
4,000 Seihyo Company, Ltd. ...............
27,792
8,000 Seiwa Electric......................
123,026
10,000 Shibazaki Seisakusho................
68,090
1,000 Shimizu Bank........................
69,387
4,000 Shingakukai Company.................
37,056
15,000 Shinkigosei Company, Ltd. ..........
147,297
10,000 Sodick+.............................
116,726
9,000 Sonton Food Industry ...............
122,562
3,000 Takeda Machinery Company, Ltd. .....
30,293
6,000 Takigami Steel Construction.........
65,589
18,000 Technology Eight Company............
133,401
2,000 Tecmo Ltd. ........................
24,827
14,000 Teikoku Hormone Manufacturing Compan
208,810
2,000 Tenryu Saw Manufacturing ...........
44,467
20,000 Toa Valve...........................
90,602
5,000 Tohoku Telecommunication Constructio
33,814
5,000 Toko Seiki..........................
37,056
3,000 Tokushima Bank Ltd. ................
24,985
3,000 Tokyo Kisen.........................
22,234
1,500 Tokyo Ohka Kogyo ...................
40,993
11,000 Tokyo Style.........................
194,636
11,000 Tomato Bank.........................
47,589
2,000 Tonichi Cable Ltd. .................
18,157
24,000 Tsukiji Uochiba.....................
115,614
19,000 Tsurumi Soda Company, Ltd. ........
132,012
17,000 Uehara Sei Shoji....................
122,998
6,000 Union Tool..........................
141,739
4,000 Yamagata Bank.......................
21,900
11,000 Yokogawa Construction Company ......
170,179
5,000 Zojirushi ..........................
58,826
8,093,417
Mexico - 1.0%
25,000 Industrias Penoles..................
124,419
52,000 Nacional de Drogas, Class L ........
143,929
268,348
Netherlands - 2.5%
3,588 Cap Volmac Group ...................
70,977
2,240 Content Beheer......................
82,442
548 Eriks Holdings......................
52,754
2,600 European Vinyls Corporation EVC Inte
90,045
1,560 Gamma Holding NV....................
69,136
1,045 Hoek's Machine & Zuurstoffab........
73,916
655 Hollandia Industriele Maatschappij N
17,302
3,816 Macintosh Confectie NV ............
98,334
3,070 N.K.F. Holdings ....................
55,098
2,236 Welna...............................
59,063
669,067
New Zealand - 0.3%
25,000 Independent Newspaper...............
82,492
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Portfolio of Investments - (Continued)
May 31, 1996 - (Unaudited)
Value
Shares
(Note 1)
COMMON STOCKS - (Continued)
Norway - 1.0%
1,523 Ark AS .............................
$27,029
3,700 Blom AS.............................
69,929
2,791 Bolig-Og Naerings Kredit ...........
75,478
5,000 Fesilas Asa.........................
57,621
1,400 Rieber Son AS, Class B .............
28,611
258,668
Singapore - 1.2%
34,724 First Capital Corporation+..........
94,242
48,000 Haw Par Brothers International Inc.
119,361
11,761 Pentex-Schweizer Circuits...........
20,054
13,442 Robinson & Company..................
53,959
10,440 Venture Manufacturing+..............
40,796
328,412
South Africa - 1.9%
66,000 Deelkral Gold Mines ................
69,793
35,000 Ergo East Rand Gold & Uranium Compan
90,517
9,000 Free State Consolidated Gold Mines .
101,897
6,500 Harmony Gold Mining Company, Ltd. ..
75,833
22,000 Hartebeestfontein Gold Mining.......
88,506
9,000 Winkelhaak Mines Ltd. ..............
88,966
515,512
Spain - 2.0%
1,031 Banco Pastor........................
57,827
3,000 Elec Reunidas de Zaragoza SA........
80,626
5,000 Hullas C. Cortes....................
101,270
2,500 Prosegur, Cia de Seguridad SA.......
89,585
10,417 Sarrio SA ..........................
36,760
183 Uniland Cementera SA................
7,228
3,355 Vidrala.............................
173,800
547,096
Sweden - 4.2%
4,500 Allgon AB, B Shares ................
73,356
3,500 Celsius Industriar AB, B Shares.....
107,857
1,000 Dahl International AB+..............
13,845
2,000 Elekta Instruments AB, B Shares.....
73,840
3,600 Esselte AB, B Shares................
68,600
3,500 Forsheda AB.........................
68,779
5,640 Frontec AB, B Shares+...............
277,080
2,400 Hoganas AB..........................
91,824
6,000 Lindab AB, B Shares ................
65,652
6,641 Om Gruppen AB .....................
170,049
6,000 Scandiaconsult AB ..................
42,428
4,000 Svedala Industri AB.................
76,818
1,130,128
Switzerland - 2.9%
28 Bobst AG ...........................
40,385
108 Bucherer AG-PC......................
44,567
24 Daetwyler Holding ..................
48,942
134 Fust (Dipling) SA...................
42,949
309 Generale D'Affichage................
155,986
75 Keramik Holding AG..................
45,974
35 Kuoni Reisen Holding, Class B.......
74,179
83 Orell Fuessli Graph Betr, Class R...
71,494
79 Orior Holding SA....................
45,419
150 Phoenix Mecano AG...................
73,918
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Portfolio of Investments - (Continued)
May 31, 1996 - (Unaudited)
Value
Shares
Note 1)
COMMON STOCKS - (Continued)
Switzerland - (Continued)
168 Siegfried AG+.......................
$118,462
246 Von Moos Holding AG+................
16,952
779,227
TOTAL COMMON STOCKS
(Cost $21,300,357)...............
22,595,243
PREFERRED STOCKS - 0.7%
Germany - 0.7%
200 Biotest AG..........................
67,652
241 Hans Einhell .......................
34,508
500 Jungheinrich AG ....................
80,788
78 WMF Wuerttembergische Metallwarenfab
14,960
TOTAL PREFERRED STOCKS (Cost $198,14
197,908
RIGHTS - 0.0%# (Cost $1,913)
France - 0.0%#
400 Infogrames Entertainment SA, Expire
3,096
TOTAL INVESTMENTS (Cost $21,500,414*)............ 85.2 %
22,796,247
OTHER ASSETS AND LIABILITIES (Net)............... 14.8
3,971,095
NET ASSETS....................................... 100.0 %
$26,767,342
* Aggregate cost for Federal tax purposes.
+ Non-income producing security.
# Amount represents less than 0.1%.
Abbreviations:
ORD=Ordinary
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Portfolio of Investments - (Continued)
May 31, 1996 - (Uanudited)
% of Net
Value
Industry Diversification Assets
(Note 1)
COMMON STOCKS:
Conglomerates.................................... 20.3 %
$5,444,850
Machinery and Engineering........................ 8.0
2,132,289
Chemicals........................................ 4.1
1,093,612
Electrical and Electronics....................... 4.0
1,076,439
Business and Public Services..................... 3.6
962,602
Banking.......................................... 3.4
916,253
Building Materials and Components................ 3.2
851,360
Gold Mines....................................... 3.1
814,384
Metals........................................... 2.9
771,404
Textiles and Apparel............................. 2.9
769,396
Food and Household Products...................... 2.8
758,278
Industrial Components............................ 2.8
751,738
Construction and Housing......................... 2.8
734,924
Health and Personal Care......................... 2.6
683,652
Miscellaneous Materials and Commodities.......... 2.5
656,768
Broadcasting and Publishing...................... 2.0
535,016
Electronic Components, Instruments............... 2.0
533,409
Merchandising.................................... 1.6
437,592
Appliances and Household Durables................ 1.2
326,338
Automobiles...................................... 1.0
268,676
Leisure and Tourism.............................. 0.9
243,924
Telecommunications............................... 0.8
220,456
Aerospace and Military Technology................ 0.8
215,870
Real Estate...................................... 0.8
207,606
Beverages and Tobacco............................ 0.7
198,434
Insurance........................................ 0.7
192,007
Energy........................................... 0.6
146,672
Forest Products and Paper........................ 0.5
142,970
Utilities - Electrical and Gas................... 0.5
123,898
Transportation................................... 0.3
86,574
Financial Services............................... 0.3
86,072
Recreation and Other Consumer Goods.............. 0.3
83,436
Data Processing and Reproduction................. 0.3
81,525
Wholesale and International Trade................ 0.2
46,819
TOTAL COMMON STOCKS.............................. 84.5
22,595,243
PREFERRED STOCKS................................. 0.7
197,908
RIGHTS........................................... 0.0 #
3,096
TOTAL INVESTMENTS................................ 85.2
22,796,247
OTHER ASSETS AND LIABILITIES (Net)............... 14.8
3,971,095
NET ASSETS....................................... 100.0 %
$26,767,342
# Amount represents less than 0.1%.
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Schedule of Forward Foreign Currency Contract
May 31, 1996 - (Unaudited)
Contract to buy
Net
Unrealized
Local Value in
In Exchange Appreciation
Maturity Date Currency U.S. $
For U.S. $ of Contract
06/04/96 79,456 FRF............................. $15,412
$15,345 $67
Net Unrealized Appreciation of Forward Foreign Currency
Contract ....... $67
See Notes to Financial Statements
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Statement of Assets and Liabilities
May 31, 1996 - (Unaudited)
ASSETS:
Investments, at value (Cost $21,500,414) (Note 1)
See accompanying schedule......................
$ 22,796,247
Cash..............................................
3,521,203
Foreign currency (Cost $70,168)...................
67,860
Receivable for investment securities sold.........
807,655
Receivable from investment adviser (Note 2).......
70,541
Dividends receivable..............................
53,801
Prepaid expenses..................................
8,449
Interest receivable...............................
468
Net unrealized appreciation of forward
foreign currency contract.....................
67
Total Assets......................................
27,326,291
LIABILITIES:
Payable for investment securities purchased....... $
455,449
Custodian fees payable (Note 2)...................
63,554
Administration fee payable (Note 2)...............
7,998
Transfer agent fees payable (Note 2)..............
1,000
Other accrued expenses and payables...............
30,948
Total Liabilities.................................
558,949
NET ASSETS...........................................
$ 26,767,342
NET ASSETS consist of:
Undistributed net investment income (Note 1)......
$ 101,668
Accumulated net realized gain on investments sold
173,328
Unrealized appreciation of investments............
1,293,592
Par value.........................................
250
Paid-in capital in excess of par value (Notes 1 an
25,198,504
Total Net Assets..................................
$ 26,767,342
NET ASSET VALUE:
Net asset value, offering and redemption price per sh
($26,767,342 * 250,296 shares of beneficial
outstanding)...............................
$106.94
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Statement of Operations
For the Period Ended May 31, 1996* - (Unaudited)
INVESTMENT INCOME:
Dividends (net of foreign withholding taxes of $23
$ 148,252
Interest..........................................
34,803
Total Investment Income...........................
183,055
EXPENSES:
Investment advisory fee (Note 2).................. $
67,821
Custodian fees (Note 2)...........................
63,554
Administration fee (Note 2).......................
31,996
Registration and filing fees......................
18,329
Professional fees.................................
10,507
Transfer agent fees (Note 2)......................
3,759
Trustees' fees and expenses (Note 2)..............
2,691
Other.............................................
21,092
Total expenses before waivers and reimbursements..
219,749
Fees waived and expenses reimbursed by investment
adviser (Note 2)..............................
(138,362)
Net Expenses......................................
81,387
NET INVESTMENT INCOME................................
101,668
REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
(Notes 1 and 3):
Net realized gain on:
Securities transactions........................
153,594
Forward foreign currency contracts.............
6,341
Foreign currency transactions..................
13,393
Net realized gain on investments during the period
173,328
Net change in unrealized appreciation/(depreciatio
Securities.....................................
1,295,833
Forward foreign currency contracts.............
67
Foreign currency transactions and other assets,
(2,308)
Net unrealized appreciation of investments during
the period.....................................
1,293,592
NET REALIZED AND UNREALIZED GAIN
ON INVESTMENTS.....................................
1,466,920
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.........................................
$ 1,568,588
* The Fund commenced operations on February 7, 1996.
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Statement of Changes in Net Assets
Period
Ended
05/31/96*
(Unaudited)
INCREASE IN NET ASSETS FROM OPERATIONS:
Net investment income................................ $
101,668
Net realized gain on investments during the period...
173,328
Net unrealized appreciation of investments during the
1,293,592
Net increase in net assets resulting from operations.
1,568,588
Net increase in net assets from Fund share transactio
25,198,654
Net increase in net assets...........................
26,767,242
NET ASSETS:
Beginning of period (original capital January 29, 199
100
End of period (including undistributed net investment
income of $101,668).............................. $
26,767,342
* The Fund commenced operations on February 7, 1996.
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
Financial Highlights
For a Fund share outstanding throughout the period.
Period Ended
05/31/96*
(Unaudited)
Net asset value, beginning of period......
$100.00
Income from investment operations:
Net investment income.....................
0.41
Net realized and unrealized gain on invest 6.53
Total from investment operations..........
6.94
Net asset value, end of period............
$106.94
Total return++............................
6.94%
Ratios to average net assets/supplemental
Net assets, end of period (in 000's)......
$26,767
Ratio of operating expenses to average daily
net assets.............................
1.20%+
Ratio of operating expenses to average dai
net assets without waivers and reimburs 3.24%+
Ratio of net investment income to average
daily net assets.......................
1.50%+
Net investment loss per share without waiv
and reimbursements.....................
($0.15)
Portfolio turnover rate...................
20%
Average commission rate (per share of security)(a)
$0.0138
_____________________________
* The Fund commenced operations on February 7, 1996.
+ Annualized.
++ Total return represents aggregate total return for the period.
(a) Average commission rate paid per share of securities purchased
and sold by the Fund.
See Notes to Financial Statements.
PANORAMA TRUST
PICTET INTERNATIONAL SMALL COMPANIES FUND
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Panorama Trust (the "Trust"), a Massachusetts business trust
registered under the Investment Company Act of 1940, as amended
(the "1940 Act"), is a no-load, diversified, open-end management
investment company which currently offers shares of two series,
the Pictet Global Emerging Markets Fund and the Pictet
International Small Companies Fund. The accompanying financial
statements and financial highlights are those of the Pictet
International Small Companies Fund (the "Fund"). The Fund"s
financial statements are prepared in accordance with generally
accepted accounting principles which require the use of management
estimates. The following is a summary of the significant
accounting policies followed by the Fund in the preparation of its
financial statements.
Securities Valuations: Equity securities listed on a U.S.
securities exchange for which market quotations are available are
valued at the last quoted sale price as of the close of the New
York Stock Exchange"s regular trading hours on the day the
valuation is made. Generally, securities listed on a foreign
exchange and unlisted foreign securities are valued at the latest
quoted sales price available before the time when assets are
valued.
Portfolio securities primarily traded on the London Stock Exchange
are generally valued at the mid-price between the current bid and
asked prices. Price information on listed securities is taken
from the exchange where the security is primarily traded.
Unlisted U.S. equity securities and listed securities not traded
on the valuation date for which market quotations are readily
available are valued at the mean between the asked and bid prices.
The value of securities for which no quotations are readily
available (including restricted securities) is determined in good
faith at fair value using methods determined by the Board of
Trustees. One or more pricing services may be used to provide
securities valuations in connection with the determination of the
net asset value of the Fund. Short-term nvestments that mature in
60 days or less are valued at amortized cost
Repurchase Agreements: The Fund may engage in repurchase
agreement transactions. Under the terms of a typical repurchase
agreement, the Fund pays a counterparty cash for, and takes
possession of, debt obligation subject to an obligation of the
seller to repurchase, and the Fund to resell, the obligation at an
agreed-upon price
and time, thereby determining the yield during the Fund's holding
period. This arrangement results in a fixed rate of return that
is not subject to market fluctuations during the Fund's holding
period. The value of the collateral held by the Fund, at all
times, is at least equal to the total amount of the repurchase
obligations, including interest. In the event of counterparty
default, the Fund generally has the right to use the collateral to
offset losses incurred. There is potential loss to the Fund in
the event the Fund is delayed or prevented from exercising its
rights to dispose of the collateral securities, including the risk
of a possible decline in the value of the underlying securities
during the period while the Fund seeks to assert its rights. The
Fund"s Investment Adviser, acting under the supervision of the
Board of Trustees, reviews the value of the collateral and the
creditworthiness of those banks and dealers with which the Fund
enters into repurchase agreements to evaluate potential risks.
Forward Foreign Currency Contracts: The Fund may invest in
forward foreign currency contracts to hedge against anticipated
future changes in exchange rates which otherwise might either
adversely affect the value of the portfolio securities of the Fund
or adversely affect the prices of securities which the Fund
intends to purchase or sell at a later date. Forward foreign
currency contracts are valued at the forward rate and are marked-
to-market daily. The change in market value is recorded by the
Fund as an unrealized gain or loss. When the contract is closed,
the Fund records a realized gain or loss equal to the difference
between the value of the contract at the time it was opened and
the value at the time it was closed.
The use of forward foreign currency contracts does not
eliminate fluctuations in the underlying prices of a Fund's
investment securities, but it does establish a rate of exchange
that can be achieved in the future. Although forward foreign
currency contracts limit the risk of loss due to a decline in the
value of the hedged currency, they also limit any potential gain
that might result should the value of the currency increase. In
addition, the Fund could be exposed to risks if the counterparties
to the contracts are unable to meet the terms of their contracts.
The Fund may enter into spot foreign currency contracts for
the purchase or sale of securities denominated in foreign
currencies to "lock" in the U.S. exchange rate of the transaction
covering the period between trade date and settlement date.
Foreign Currency: The books and records of the Fund are
maintained in United States (U.S.) dollars. Foreign currencies,
investments and other assets and liabilities are translated into
U.S. dollars at the bid prices of such currencies against U.S.
dollars last quoted by a major bank. Unrealized gains and losses
on investments which result from changes in foreign currency
exchange rates have been included in the unrealized
appreciation/(depreciation) of investments. Net realized foreign
currency gains and losses resulting from changes in exchange rates
include foreign currency gains and losses between trade date and
settlement date of investment securities transactions, foreign
currency transactions and the difference between the amounts of
interest and dividends recorded on the books of the Fund and the
amount actually received. The portion of foreign currency gains
and losses related to fluctuation in exchange rates between the
initial purchase trade date and subsequent sale trade date is
included in realized gains and losses on investment securities
sold.
Securities Transactions and Investment Income: Securities
transactions are recorded on a trade date basis. Realized gains
and losses from securities transactions are recorded on the
identified cost basis. Interest income is recorded on the accrual
basis. Dividend income is recorded on the ex-dividend date,
except that certain dividends from foreign securities are recorded
as soon as the Fund is informed of the ex-dividend date.
Dividends and Distributions to Shareholders: Distributions
from net investment income, if any, are declared and paid
annually. The Fund"s net realized capital gains (including net
short-term capital gains), unless offset by any available capital
loss carryforward, are distributed to shareholders annually.
Additional distributions of net investment income and capital
gains may be made at the discretion of the Board of Trustees in
order to avoid the application of a 4% non-deductible Federal
excise tax. Income distributions and capital gain distributions
are determined in accordance with income tax regulations which may
differ from generally accepted accounting principles. These
differences are primarily due to timing differences and differing
characterization of
distributions made by a Fund. Dividends and other distributions
are automatically reinvested in additional shares of the Fund at
net asset value next determined after such dividend or
distribution is declared.
Income Taxes: The Fund intends to qualify as a regulated
investment company by complying with the requirements of the
Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and by distributing substantially all of its
earnings to shareholders. Therefore, no Federal income tax
provision is required.
2. INVESTMENT ADVISORY FEE, ADMINISTRATION FEE AND OTHER PARTY
TRANSACTIONS.
The Trust, on behalf of the Fund, has entered into an
Investment Advisory Agreement (the "Advisory Agreement") with
Pictet International Management Limited ("Pictet International"),
a wholly-owned subsidiary of Pictet (Canada) & Company ("Pictet
Canada"). Pictet Canada is a partnership, whose principal
activity is investment accounting, custody and securities
brokerage. Pictet Canada has two general partners, Pictet
Advisory Services Overseas and FINGEST, and seven limited
partners, each of whom is also a partner of Pictet & Cie, a Swiss
private bank founded in 1805. Under the terms of the Advisory
Agreement the Fund will pay Pictet International a fee, computed
daily and payable monthly, at an annual rate of 1.00% of the
average daily net assets of the Fund. Pictet International has
voluntarily agreed to waive its fees and reimburse expenses to the
extent necessary to ensure that the Fund"s total operating
expenses do not exceed 1.20% of the Fund"s average daily net
assets. For the period ended May 31, 1996, Pictet International
waived fees and reimbursed expenses of $67,821 and $70,541,
respectively.
First Data Investor Services Group, Inc. ("FDISG"), a
wholly-owned subsidiary of First Data Corporation, serves as the
Trust"s administrator, accounting agent and transfer agent.
FDISG, as accounting agent, is paid a fee computed daily and
payable monthly at an annual rate of 0.04% of the average daily
net assets of the Fund, subject to a $50,000 annual minimum from
the Fund. For administrative services, FDISG is entitled to
receive
$220,000 per annum from the Trust. In addition, for its services
as transfer agent, FDISG is paid separate compensation.
No officer, director or employee of Pictet, FDISG, or any
affiliate thereof, receives any compensation from the Trust for
serving as Trustee or officer of the Trust. The Trust pays each
Trustee an annual fee of $5,000, plus an additional $500 for each
Board and Committee meeting attended. The Trust also reimburses
expenses incurred by the Trustee in attending such meetings.
Brown Brothers Harriman & Co. serves as the Fund"s
custodian. 440 Financial Distributors, Inc., a wholly-owned
subsidiary of FDISG serves as the Fund"s principal underwriter and
distributor.
3. PURCHASES AND SALES OF SECURITIES.
Cost of purchases and proceeds from sales of investment
securities, excluding short-term securities and U.S. government
securities, for the period ended May 31, 1996 amounted to
$24,794,656 and $3,447,836, respectively.
At May 31, 1996, aggregate gross unrealized appreciation for
all securities in which there is an excess of value over tax cost
amounted to $1,825,614, and the aggregate gross unrealized
depreciation for all securities in which there is an excess of tax
costs over value amounted to $529,781.
4. SHARES OF BENEFICIAL INTEREST.
The Fund has one class of shares of beneficial interest, par
value $0.001 per share, of which an unlimited number of shares are
authorized. Transactions in shares of beneficial interest were as
follows:
Period Ended
May 31, 1996*
Shares Amount
Sold .............................. 250,295 $25,198,654
Net increase .................. 250,295 $25,198,654
_______________________
* The Fund commenced operations on February 7, 1996.
5. FOREIGN SECURITIES.
The Fund may invest in foreign securities. Investing in
securities of foreign companies and foreign governments involves
special risks and considerations not typically associated with
investing in U.S. companies and the U.S. government. These risks
include re-valuation of currencies, less reliable information
about issuers, varying securities transaction clearance and
settlement practices, and future adverse political and economic
developments. These risks are heightened for investments in
emerging markets countries. Moreover, securities of many foreign
companies and foreign governments and their markets may be less
liquid and their prices more volatile than those of securities of
comparable U.S. companies and the U.S. government.
C: OTHER INFORMATION
Item 24. Financial Statements and Exhibits.
List all financial statements and exhibits filed as part of
the Registration Statement.
(a) Financial Statements:
Included in Part A: Unaudited Financial
Highlights for Pictet International Small
Companies Fund for the period from February 7, 1996
(commencement of operations) to May 31, 1996 are filed
herein.
Included in Part B: Unaudited Financial
Statements for Pictet International Small
Companies Fund for the period February 7, 1996
(commencement of operations) to May 31, 1996:
Portfolio of Investments
Statement of Assets and Liabilites
Statement of Operations
Statement of Changes in Net Assets
Notes to Financial Statements
(b) Exhibits:
(1)(a) Declaration of Trust initially filed on
May 24, 1995 is incorporated by reference to
Post-Effective No. 3 as filed with the SEC January 2,
1996 ("Post-Effective Amendment No. 3").
(1)(b) Amendment to the Declaration of Trust
dated June 8, 1995 initially filed on
September 21, 1995 is incorporated by reference to Post-
Effective Amendment No. 3.
(1)(c) Amendment to the Declaration of Trust
dated December 8,1995 is incorporated by
reference to Post-Effective Amendment No. 3.
(1)(d) Amendment to Declaration of Trust dated
March 1, 1996 is incorporated by
reference to Post-Effective Amendment No. 4 as filed
with the SEC April 1, 1996 ("Post-
Effective Amendment No. 4").
(2) By-Laws initially filed on May 24, 1995 is
incorporated by reference to Post-
Effective Amendment No. 3.
(3) Not Applicable.
(4) Not Applicable.
(5)(a) Investment Advisory Agreement between
Registrant and Pictet International Management Limited is
incorporated by reference to Post-Effective Amendment No. 3.
(5)(b) Supplement dated January 2, 1996 to
Investment Advisory Agreement between Registrant and Pictet
International Management Limited with respect to Pictet
International Small Companies Fund is incorporated by reference to
Post-Effective Amendment No. 4.
(6)(a) Distribution Agreement between Registrant
and 440 Financial Distributors,
Inc. is incorporated by reference to Post-
Effective Amendment No. 3.
(6)(b) Supplement dated January 2, 1996 to the
Distribution Agreement dated between Registrant and
First Data Investor Services Group, Inc. with
respect to Pictet International Small Companies Fund is
incorporated by reference to Post-
Effective Amendment No. 4.
(7) Not Applicable.
(8)(a) Custodian Agreement between Registrant and
Brown Brothers Harriman & Co. is incorporated by reference to
Post-Effective Amendment No. 3.
(8)(b) Amendment to Custodian Agreement dated
January 10, 1996 to Custodian Agreement between Registrant and
Brown Brothers Harriman & Co. is incorporated by reference to
Post-Effective Amendment No. 4.
(9)(a) Transfer Agency Agreement between
Registrant and The Shareholder Services Group, Inc. is
incorporated by reference to Post-Effective Amendment No. 3.
(9)(b) Supplement dated January 2, 1996 to the
Transfer Agency and Services Agreement between Registrant and
First Data Investor Services Group, Inc. with respect to Pictet
Global Emerging Markets is incorporated by reference to Post-
Effective Amendment No. 4.
(9)(c) Administration Agreement between
Registrant and The Shareholder Services Group, Inc. is
incorporated by reference to Post-Effective Amendment No. 3.
(9)(d) Supplement dated January 2, 1996 to the
Administration Agreement between Registrant and First Data
Investor Services Group, Inc.with respect to Pictet International
Small Companies Fund is incorporated by reference to Post-
Effective Amendment No. 4.
(10) Not applicable.
(11) Not applicable.
(12) Not Applicable.
(13)(a) Purchase Agreement relating to Initial
Capital initially filed
on October 2, 1995 is incorporated by reference
to Post-Effective Amendment No. 3.
(13)(b) Purchase Agreement relating to Initial
Capital dated February 1, 1996 with respect
to Pictet International Small Companies is
incorporated by reference to Post-Effective Amendment No. 4.
(14) Not Applicable.
(15) Not Applicable.
(16) Not Applicable.
(17) Not Applicable.
Item 25. Persons Controlled by or Under Common Control with
Registrant.
Registrant is not controlled by or under common control with
any person.
Item 26. Number of Holders of Securities.
As of June 30, 1996, there are, with respect to the Pictet
International Small Companies Fund, 3 record holders of the
Registrant's shares of beneficial interest, $.001 par value.
As of June 30, 1996, there are, with respect to the Pictet
Global Emerging Markets Fund, 6 record holders of the Registrant's
shares of beneficial interest, $.001 par value.
Item 27. Indemnification.
Under Section 4.3 of Registrant's Declaration of Trust, any
past or present Trustee or officer of Registrant (hereinafter
referred to as a "Covered Person") is indemnified to the fullest
extent permitted by law against all liability and all expenses
reasonably incurred by him or her in connection with any claim,
action, suit or proceeding to which he or she may be a party or
otherwise involved by reason of his or her being or having been a
Covered Person. This provision does not authorize indemnification
when it is determined, in the manner specified in the Declaration
of Trust, that such Covered Person has not acted in good faith in
the reasonable belief that his or her actions were in or not
opposed to the best interests of Registrant. Moreover, this
provision does not authorize indemnification when it is
determined, in the manner specified in the Declaration of Trust,
that such Covered Person would otherwise be liable to Registrant
or its shareholders by reason of willful misfeasance, bad faith,
gross negligence or reckless disregard of his or her duties.
Expenses may be paid by Registrant in advance of the final
disposition of any claim, action, suit or proceeding upon receipt
of an undertaking by or on behalf of such Covered Person to repay
such expenses to Registrant in the event that it is ultimately
determined that indemnification of such expenses is not authorized
under the Declaration of Trust and the Covered Person either
provides security for such undertaking or insures Registrant
against losses from such advances or the disinterested Trustees or
independent legal counsel determines, in the manner specified in
the Declaration of Trust, that there is reason to believe the
Covered Person will be found to be entitled to indemnification.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933, as amended (the "Securities Act"), may be
permitted to Trustees, officers and controlling persons of the
Registrant pursuant to the foregoing provisions or otherwise, the
Registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public
policy as expressed in the Securities Act and is therefore,
unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant
of expenses incurred or paid by a Trustee, officer, or controlling
person of the Registrant in connection with the successful defense
of any claim, action, suit or proceeding) is asserted against the
Registrant by such Trustee, officer or controlling person in
connection with the shares being registered, the Registrant will,
unless in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Securities Act and will
be governed by the final adjudication of such issue.
Item 28. Business and Other Connections of Investment Adviser.
Pictet International Management Limited (the "Adviser") is
an affiliate of Pictet & Cie (the "Bank"), a Swiss private bank,
which was founded in 1805. The Bank manages the accounts for
institutional and private clients and is owned by seven partners.
The Adviser, established in 1980, manages the investment needs of
clients seeking to invest in the international fixed revenue and
equity markets.
The list required by this Item 28 of officers and directors
of Pictet International Management Limited, together with the
information as to any other business, profession, vocation or
employment of substantial nature engaged in by such officers and
directors during the past two years, is incorporated by reference
to Schedules A and D of Form ADV filed by Pictet International
Management Limited pursuant to the Investment Advisers Act of 1940
(SEC File No. 801-15143).
Item 29. Principal Underwriters.
(a) 440 Financial Distributors, Inc., the Fund's Distributor,
also acts as principal underwriter and distributor for The Galaxy
Funds, The Galaxy VIP Fund, Galaxy Fund II, BT Insurance Funds
Trust, the Armada Funds (formerly known as NCC Funds) and the
AMBAC Funds.
(b) For information with respect to each Director and officer of
the principal underwriter of the Fund, see the following:
Name and
Principal
Business
Address
Position and
Offices with
440 Financial
Distributors,
Inc.
Pos
iti
on
and
Off
ice
s
wit
h
the
Reg
ist
ran
t
Tammy
Hall
Director,
President and
Chief
Executive
Officer
Non
e
William
Small
Director
Non
e
Jack P.
Kutner
Director
Non
e
Scott M.
Hacker
Vice
President,
Treasurer and
Chief
Financial
Officer
Non
e
Stephen
Wyle
Vice President
Non
e
Bernard
Rothman
Vice President
- - Tax
Non
e
Marlys
Jarstfer
Chief
Compliance
Officer
Non
e
Patricia
Bickimer
Chief Legal
Officer
Sec
ret
ary
Bradley
Stearns
Secretary
Non
e
The business address of the above-listed persons is 4400
Computer Drive, Westboro, Massachusetts 01581-5120.
(c) 440 Financial will not be paid any compensation from
the Registrant for its services as principal underwriter.
Item 30. Location of Accounts and Records.
All accounts books and other documents required to be
maintained by Registrant by Section 31(a) of the Investment
Company Act of 1940 and the Rules thereunder will be maintained at
the offices of:
Pictet International Management Limited
Cutlers Garden
5 Devonshire Square
London, England EC2M 4LD
(records relating to its functions as investment adviser)
Brown Brothers Harriman & Co.
40 Water Street
Boston, Massachusetts 02109
(records relating to its functions as custodian)
First Data Investor Services Group, Inc.
One Exchange Place
Boston, Massachusetts 02109
(records relating to its functions as transfer agent and
administrator)
440 Funds Distributors, Inc.
4400 Computer Drive
Westboro, Massachusetts 015181-5120
(records relating to its functions as distributor)
Item 31. Management Services.
Not Applicable.
Item 32. Undertakings.
(a) Not Applicable.
(b) Not Applicable
(c) The Registrant will furnish each person to whom a
prospectus is delivered with a copy of the Registrant's latest
annual report to shareholders, upon request and without charge.
(d) The undersigned Registrant will afford to shareholders
of the Fund the rights provided by Section 16(c) of the Investment
Company Act of 1940 so long as Registrant does not hold annual
meetings of its shareholders.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933,
as amended, and the Investment Company Act of 1940, as amended,
Panorama Trust certifies that it meets all of the requirements for
effectiveness of this Registration Statement pursuant to Rule
485(b) under the Securities Act of 1933, and the Registrant has
duly caused this Post-Effective Amendment No. 5 to its
Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Boston, and
Commonwealth of Massachusetts, on the 23rd day of
July 1996.
PANORAMA TRUST
By /s/ Jean G. Pilloud
Jean G. Pilloud
Chairman, President and
Trustee
Pursuant to the requirements of the Securities Act of 1933,
as amended, this Post-Effective Amendment No. 5 to the
Registration Statement of Panorama Trust has been signed by the
following persons in the capacities and on the dates indicated:
Signature Title Date
/s/ Jean G. Pilloud Chairman, President
July 23, 1996
(Jean G. Pilloud) and Trustee
(principal executive officer)
/s/ Michael C. Kardok Treasuer
July 23, 1996
(Michael C. Kardok) (principal financial and
accounting officer)
/s/ Jean-Francois Demole Trustee
July 23, 1996
(Jean-Francois Demole)
/s/ Jeffrey P. Somers, Esq. Trustee
July 23, 1996
(Jeffrey P. Somers, Esq.)
/s/ Bruce W. Schnitzer Trustee July 23,
1996
(Bruce W. Schnitzer)
/s/ David J. Callard Trustee
July 23, 1996
(David J. Callard)
2
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