As filed via EDGAR with the Securities and Exchange Commission on November 8, 2012
File No. 333-45959
ICA No. 811-08649
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. 23 | x |
And
REGISTRATION STATEMENT
UNDER
THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 25 | x |
E.I.I. REALTY SECURITIES TRUST
(Exact Name of Registrant as Specified in Charter)
640 Fifth Avenue, 8th Floor
New York, New York 10019
(Address of Principal Executive Office) (Zip Code)
Registrants Telephone Number, including Area Code: (800) 667-0974
Richard J. Adler
European Investors Incorporated
640 Fifth Avenue, 8th Floor
New York, New York 10019
(Name and Address of Agent for Service)
Copies to:
Susan J. Penry-Williams, Esq.
Kramer Levin Naftalis & Frankel LLP
1177 Avenue of the Americas
New York, New York 10036
Approximate date of proposed public offering: As soon as practicable after this registration statement becomes effective.
It is proposed that this filing will become effective (check appropriate box)
If appropriate, check the following box:
þ | immediately upon filing pursuant to paragraph (b) |
¨ | on (date) pursuant to paragraph (b) |
¨ | 60 days after filing pursuant to paragraph (a)(1) |
¨ | on (date) pursuant to paragraph (a)(1) |
¨ | 75 days after filing pursuant to paragraph (a)(2) |
¨ | on (date) pursuant to paragraph (a)(2) of Rule 485. |
If appropriate, check the following box:
¨ | This post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under Rule 485(b) under the Securities Act and has duly caused this Post-Effective Amendment to the Registration Statement on Form N-1A to be signed on its behalf by the undersigned, thereto duly authorized in the City of New York, and the State of New York on this 8th day of November, 2012.
E.I.I. REALTY SECURITIES TRUST
(Registrant)
By: | /s/ Richard J. Adler | |
Richard J. Adler, Chief Executive Officer and President |
SIGNATURE |
TITLE | |
/s/ Richard J. Adler Richard J. Adler |
Chief Executive Officer, President and Trustee | |
/s/ Michael J. Meagher Michael J. Meagher |
Chief Compliance Officer and Treasurer | |
/s/ Warren K. Greene * Warren K. Greene |
Chairman of the Board and Trustee | |
/s/ Joseph Gyourko * Joseph Gyourko |
Trustee | |
/s/ Juan M. Meyer * Juan M. Meyer |
Trustee | |
/s/ Christian A. Lange Christian A. Lange |
Trustee | |
/s/ Michael J. Abbott * Michael J. Abbott |
Trustee |
* | By Susan J. Penry-Williams, Esq., Attorney-In-Fact |
EXHIBIT INDEX
Exhibit Number | Description | |||
EX-101.INS | XBRL Instance Document | |||
EX-101.SCH | XBRL Taxonomy Extension Schema Document | |||
EX-101.CAL | XBRL Taxonomy Extension Calculation Linkbase | |||
EX-101.DEF | XBRL Taxonomy Extension Definition Linkbase | |||
EX-101.LAB | XBRL Taxonomy Extension Labels Linkbase | |||
EX-101.PRE | XBRL Taxonomy Extension Presentation Linkbase | |||
E.I.I. INTERNATIONAL PROPERTY FUND | ||||||||||||||||||||||||||||||||
E.I.I. INTERNATIONAL PROPERTY FUND SUMMARY SECTION | ||||||||||||||||||||||||||||||||
Investment Objective | ||||||||||||||||||||||||||||||||
The International Funds investment objective is to provide current income and long-term capital gains. | ||||||||||||||||||||||||||||||||
Fund Expenses | ||||||||||||||||||||||||||||||||
The following tables describe the fees and expenses you may pay if you buy and hold shares of the International Fund: | ||||||||||||||||||||||||||||||||
(fees paid directly from your investment) |
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(expenses that you pay each year as a percentage of the value of your investment) |
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Example | ||||||||||||||||||||||||||||||||
This Example is intended to help you compare the cost of investing in the International Fund with the cost of investing in other mutual funds. The Example assumes that you invest $1,000,000 in the International Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be: |
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Portfolio Turnover | ||||||||||||||||||||||||||||||||
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Funds performance. During the most recent fiscal year, the Funds portfolio turnover rate was 13% of the average value of its portfolio. | ||||||||||||||||||||||||||||||||
Principal Strategies | ||||||||||||||||||||||||||||||||
The International Fund seeks to achieve its investment objective by investing primarily in international property companies whose business is to own, operate, develop and manage international real estate. Under normal market circumstances, the Fund will invest at least 80% of its net assets (which, for purposes of this policy, may include borrowings for investment purposes) in the equity securities of non-U.S. companies (with a primary emphasis on real estate investment trusts (REITs) or REIT-like structures) that are principally engaged in the ownership, construction, management, financing, or sale of residential, commercial, or industrial real estate. For purposes of this policy, principally engaged means that at least 50% of a companys revenues are derived from such real estate activities or at least 50% of the fair market value of a companys assets are invested in real estate. The Fund will not change this policy unless it notifies shareholders at least 60 days in advance. International property companies may include hotel and gaming companies, retailers, theatre companies, supermarket chains, developers and mortgage companies. The securities in which the International Fund may invest include but are not limited to common stock, preferred stock, convertible securities, depositary receipts and rights and warrants. E.I.I.s investment process employs a combination of a top-down, macro level analysis, together with rigorous bottom-up, fundamental securities and real estate research and analysis on individual companies by its analyst team. The investment process results from the Advisers experience in the real estate markets and financial markets globally and involves a highly disciplined, value-oriented approach. The Adviser will focus principally on those countries that have established property markets and that have the appropriate level of country risk and growth prospects. Once a country has been identified as worthy of further consideration, the Adviser reviews local economic factors to determine the stage of the property cycle and which companies are well positioned to benefit from future trends. After isolating those companies that are most likely to provide investment opportunities, the Adviser will use company models to further refine the analysis. By investing in the major international property markets outside the U.S. (including those in emerging market countries), the International Fund seeks to benefit from the cyclical nature of the real estate industry, the expanding role of securitization in the global property markets, and broad exposure to investing in different markets worldwide. In the opinion of the Adviser, property securities provide a higher level of local market exposure and income returns than other types of equity securities. Property company returns do not tend to be highly correlated with either local or foreign broad-based securities markets. The Adviser also will seek to maximize risk-adjusted returns and will evaluate the relative risks of each investment in the context of overall portfolio risk. This is especially important given the international orientation of the International Fund. The Adviser will closely monitor the Funds exposure to markets and countries with the highest levels of risk (as measured by standard deviation of returns). In order to attempt to meet the International Funds investment objective, the Adviser will seek to invest in securities that will provide sufficient current income and liquidity. Since the Fund will have an overall value orientation, portfolio turnover is anticipated to be modest, thereby minimizing the Funds expenses. The Adviser will monitor the Funds exposure to a wide variety of property markets to ensure that portfolio risk levels are within the Advisers internal guidelines. |
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Principal Investment Risks | ||||||||||||||||||||||||||||||||
Risks associated with investing in the securities of companies in the real estate industry include the following: declines in the value of real estate, risks related to general and local economic conditions, overbuilding and increased competition, increases in property taxes and operating expenses, changes in zoning laws, casualty or condemnation losses, variations in rental income, changes in neighborhood values, the appeal of properties to tenants and increases in interest rates. As with any mutual fund, there is no guarantee that the International Fund will earn income or show a positive total return over time. The Funds price, yield and total return will fluctuate. You may lose money if the Funds investments do not perform well. Investment Risk. An investment in the Fund is subject to investment risk, including the possible loss of the entire principal amount that you invest. Stock Market Risk. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Real Estate Securities Risk. The Funds investments in real estate securities, including REITs, are subject to the same risks as direct investments in real estate and mortgages, and their value will depend on the value of the underlying real estate interests. These risks include default, prepayments, changes in value resulting from changes in interest rates and demand for real and rental property and the management skill and creditworthiness of REIT issuers. In this Prospectus, REITs are defined as companies that are permitted by local regulations to avoid payment of taxes at the corporate level by paying out a substantial portion of income to shareholders as dividends. The failure of a company to qualify as a REIT could have adverse consequences for the Fund, including significantly reducing return to the Fund on its investment in such company. Foreign (Non-U.S.) Securities Risk. Risks of investing in foreign securities include currency risks, future political and economic developments and possible imposition of foreign withholding taxes on income payable on the securities. In addition, there may be less publicly available information about a foreign issuer than about a domestic issuer, and foreign issuers may not be subject to the same accounting, auditing and financial recordkeeping standards and requirements as domestic issuers. Foreign Currency Risk. The Funds NAV could decline as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Emerging Markets Risk. Securities of companies in emerging markets may be more volatile than those of companies in more developed markets. Emerging market countries generally have less developed markets and economies and, in some countries, less mature governments and governmental institutions. Investing in securities of companies in emerging markets may entail special risks relating to potential economic, political or social instability and the risks of expropriation, nationalization, confiscation or the imposition of restrictions on foreign investment, the lack of hedging instruments, and on repatriation of capital invested. Interest Rate Risk. Interest rate risk is the risk that preferred securities, and to a lesser extent dividend paying common stocks, will decline in value because of changes in market interest rates. When market interest rates rise, the market value of such securities generally will fall. Investor Profile The International Fund may be appropriate for investors who:
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Fund Performance | ||||||||||||||||||||||||||||||||
The bar chart and the table below show how the International Fund has performed in the past and provide an indication of the risks of investing in the Fund by showing changes in the Funds performance compared with an index which serves as a broad measure of market performance. Both the bar chart and the table assume that all dividends and distributions are reinvested in the Fund. The Funds past performance does not show how the Fund will perform in the future. | ||||||||||||||||||||||||||||||||
E.I.I. International Property Fund Returns for Each Full Calendar Year Since the Fund’s Inception on July 1, 2004 | ||||||||||||||||||||||||||||||||
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(for the Periods Ended December 31, 2011) |
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After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your tax situation and may differ from those shown and are not relevant if you hold your shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. The International Funds shares, when redeemed, may be worth more or less than original cost. The Funds performance takes into account all applicable fees and expenses. |