<PAGE>
[LOGO]
JUNDT FUNDS
JUNDT
GROWTH FUND
JUNDT
U.S. EMERGING
GROWTH FUND
JUNDT
OPPORTUNITY FUND
JUNDT
TWENTY-FIVE FUND
SEMI-ANNUAL REPORT
JUNE 30, 1999
SEARCHING TODAY FOR THE GENIUSES OF TOMORROW-SM-
<PAGE>
- -------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
- -------------------------------------------------------------------------------
DEAR SHAREHOLDER,
The first two quarters of 1999 have witnessed strong economic growth and record
highs in the stock market. However, the recent increase of interest rates has
heightened the concerns of many investors. In trying to obtain capital
appreciation over a long period of time, we believe it is important to have the
ability to protect assets when market conditions are unstable and unclear. The
interest rate and economic conditions currently underlying the market will
continue to lead us to consider methods of protecting assets with hedging
strategies.
The current investment environment is precarious. The market's price/earnings
ratio exceeds 30. In addition, interest rates may be heading in a direction
that could lead to a situation where equities experience greater volatility.
The U.S. Treasury market has experienced a pronounced sell off. The yield on
the bellwether 30-year Treasury bond has jumped from 5% at the year's outset
to 6.125%, the highest level since late 1997. The Federal Reserve's 0.25%
boost to short-term interest rates has also sparked concern that more rate
increases will take place later this year. Many bond market investors are
worried that the economy is growing too quickly and suspect that the prospect
of higher inflation may cause the Federal Reserve to unleash a string of
interest rate increases.
Due to the underlying interest rate and economic conditions, the Jundt Funds
were managed with a degree of caution in the first and second quarters.
JUNDT GROWTH FUND
The Jundt Growth Fund concentrates on medium-to-large-size companies, with at
least half the equity securities consisting of companies that have annual
revenues greater than $750 million. The Fund seeks to invest in companies with
annual revenue growth rates of at least 15%. As of June 30, the Fund's portfolio
was generating top-line revenue growth of 40% versus an average of 8% for the
companies comprising the Standard & Poor's 500 Index.
Companies in the telecommunications, medical devices, pharmaceutical and retail
sectors were prevalent in the portfolio during the period and showed strong
performance.
The aggregate returns for the various periods ended June 30, 1999, for the Jundt
Growth Fund and the Fund's comparable benchmark are stated below:
<TABLE>
<CAPTION>
YEAR-TO- SINCE
DATE 1-YEAR INCEPTION(1)
<S> <C> <C> <C>
JUNDT GROWTH FUND* 10.87% 32.37% 179.25%
Lipper Growth Fund Index 11.90 21.69 259.68
</TABLE>
1
<PAGE>
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LETTER TO SHAREHOLDERS (CONTINUED)
- -------------------------------------------------------------------------------
JUNDT U.S. EMERGING GROWTH FUND
The investment objective of the Jundt U.S. Emerging Growth Fund is long-term
capital appreciation. The Fund seeks to attain this objective by investing in 30
to 50 of the fastest growing companies in the United States. This Fund
concentrates on smaller companies. The majority of its portfolio is comprised of
companies with annual revenues of less than $750 million. We place an emphasis
on companies we believe will achieve annual revenue growth of at least 25%. As
of June 30, the Fund's portfolio was generating top-line revenue growth of 50%.
Companies in the computer services, computer hardware, telecommunications and
Internet technology sectors were the largest portions of the portfolio during
the period.
The aggregate returns for the various periods ended June 30, 1999, for the Jundt
U.S. Emerging Growth Fund and the Fund's comparable benchmark are stated below:
<TABLE>
<CAPTION>
YEAR-TO- SINCE
DATE 1-YEAR INCEPTION(2)
<S> <C> <C> <C>
JUNDT U.S. EMERGING
GROWTH FUND** 0.07% 25.60% 165.70%
Lipper Small Cap
Growth Fund Index 9.43 1.92 42.75
</TABLE>
JUNDT OPPORTUNITY FUND
The Jundt Opportunity Fund seeks long-term capital appreciation by utilizing an
aggressive yet flexible investment program. The Fund may employ leverage, sell
securities short and buy and sell futures and options contracts to protect
assets against adverse market price changes and to generate additional
investment returns.
Companies in the computer hardware and software, telecommunications, medical
devices and pharmaceutical sectors were significant positions within the Fund's
portfolio during the period.
The aggregate returns for the various periods ended June 30, 1999, for the Jundt
Opportunity Fund and the Fund's comparable benchmark are stated below:
<TABLE>
<CAPTION>
YEAR-TO- SINCE
DATE 1-YEAR INCEPTION(3)
<S> <C> <C> <C>
JUNDT OPPORTUNITY FUND** 10.92% 51.36% 148.54%
Lipper Capital Appreciation
Fund Index 14.98 20.28 65.51
</TABLE>
2
<PAGE>
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LETTER TO SHAREHOLDERS (CONTINUED)
- -------------------------------------------------------------------------------
JUNDT TWENTY-FIVE FUND
The Jundt Twenty-Five Fund's investment objective is long-term capital
appreciation. The Fund seeks to achieve this objective by investing in a more
concentrated portfolio of approximately 25 stocks, primarily of American growth
companies of all sizes.
The Fund's strong performance thus far in 1999 can largely be attributed to
strength in telecommunications, medical devices, computer software,
pharmaceutical, computer hardware and broadcasting/cable stocks.
The aggregate returns for the various periods ended June 30, 1999, for the Jundt
Twenty-Five Fund and the Fund's comparable benchmark are stated below:
<TABLE>
<CAPTION>
YEAR-TO- SINCE
DATE 1-YEAR INCEPTION(4)
<S> <C> <C> <C>
JUNDT TWENTY-FIVE FUND** 20.05% 60.81% 110.35%
Lipper Capital Appreciation
Fund Index 14.98 20.28 37.94
</TABLE>
We will continue to work diligently to reach our goals--"Searching Today for
the Geniuses of Tomorrow." Thank you for entrusting your business with the
Jundt Funds.
Sincerely,
/s/ James R. Jundt
James R. Jundt
Chairman
* Quoted performance is for the Growth Fund's Class Ishares, which are not
available for public investment. The Fund currently issues four share
classes, each subject to different sales charges and Rule 12b-1 fees. Class
I shares are not subject to sales charges or Rule 12b-1 fees. Therefore, the
performance of Class I shares will exceed that of each of the Fund's other
share classes.
** Quoted performance is for the Fund's Class A shares. Each Fund currently
issues four share classes, each subject to different sales charges and Rule
12b-1 fees. Class A shares are subject to a maximum front-end sales charge of
5.25%. The stated return does not reflect the deduction of any front-end
sales charge.
(1)Inception dates are September 3, 1991, for the Jundt Growth Fund's Class I
shares and the Russell 1000 Index, and August 31, 1991, for the Lipper Growth
Fund Index.
(2)Inception dates are January 2, 1996, for the Jundt U.S. Emerging Growth
Fund's Class I shares and the Russell 2000 Growth Index, and December 29,
1995, for the Lipper Small Cap Growth Fund Index.
(3)Inception date is December 26, 1996, for the Jundt Opportunity Fund's Class I
shares and the Index data.
(4)Inception date is December 31, 1997, for the Jundt Twenty-Five Fund's Class I
shares and the Index data.
3
<PAGE>
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JUNDT ASSOCIATES' APPROACH TO INVESTING: GROWTH FUND
- -------------------------------------------------------------------------------
JUNDT ASSOCIATES IS GROWTH-ORIENTED; OUR FOCUS IS ON COMPANIES GENERATING
significant revenue increases. We believe the U.S. economy's heterogeneous
nature and multi-trillion-dollar size generally afford investors significant
growth opportunities. We emphasize the fundamental prospects of individual
companies rather than macroeconomic trends.
The Growth Fund concentrates on medium- to larger-size companies, with at least
half the equity securities consisting of companies that have annual revenues
greater than $750 million. Within these parameters, the Growth Fund's mission is
to establish equity positions in 30 to 50 companies we believe to be among the
fastest-growing corporations in America. Particular emphasis is placed on
companies we believe will achieve annual rates of revenue growth of 15% or
greater. See the Fund's prospectus for a description of the risks that may be
associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF JUNE 30, 1999
(AS A PERCENTAGE OF NET ASSETS)
- --------------------------------------------------------------------------------
[CHART]
[EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<S> <C>
Computer Services/Software 10.6%
Computer Hardware 6.4%
Telecommunication Infrastructure 13.2%
Electronics 2.4%
Wireless/Telecommunication Services 10.2%
Broadcasting/Cable 10.5%
Medical Devices/Drugs 22.3%
Retail 13.3%
Internet Technology 4.0%
Restaurants 3.0%
</TABLE>
4
<PAGE>
- -------------------------------------------------------------------------------
PERFORMANCE DATA: GROWTH FUND (UNAUDITED)
- -------------------------------------------------------------------------------
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- -------------------------------------------------------------------------------
[GRAPH]
[EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<S> <C>
JUNDT GROWTH FUND(1) $27,925
(Class I shares without sales charge)*
JUNDT GROWTH FUND(1) $26,459
(Class I shares with sales charge)
RUSSELL 1000 INDEX(2) $41,470
LIPPER GROWTH FUND INDEX(3) $35,969
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended June 30, 1999)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SINCE SINCE
1-YEAR 5-YEAR INCEPTION(4) INCEPTION(5)
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
JUNDT GROWTH CLASS A
Without sales charge* 31.89% -- -- 22.58%
With sales charge (a) 24.96 -- -- 20.71
- -------------------------------------------------------------------------------
JUNDT GROWTH CLASS B
Without sales charge* 31.18 -- -- 21.76
With sales charge (b) 27.18 -- -- 21.23
- -------------------------------------------------------------------------------
JUNDT GROWTH CLASS C
Without sales charge* 31.06 -- -- 21.81
With sales charge (c) 30.06 -- -- 21.81
- -------------------------------------------------------------------------------
JUNDT GROWTH CLASS I
Without sales charge* 32.37 21.99% 14.02% --
With sales charge (a) 25.42 20.68 13.24 --
- -------------------------------------------------------------------------------
RUSSELL 1000 INDEX 21.93 27.15 19.93 26.91
- -------------------------------------------------------------------------------
LIPPER GROWTH FUND INDEX 21.69 23.83 17.76 23.89
- -------------------------------------------------------------------------------
</TABLE>
* Applicable to investors who purchased shares at net asset value (without
sales charges), including shareholders who acquired Class I shares upon the
Fund's conversion to an open-end fund on December 29, 1995.
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares are
redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1) Total return is based on a hypothetical investment at the Fund's inception
on September 3, 1991. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING
UPON THE TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes
reinvestment of all dividends and distributions. One line reflects total
return with deduction of the current maximum initial sales charge of 5.25%,
and the other line reflects total return without such charge. Total return
prior to December 29, 1995, reflects the Fund's performance as a closed-end
fund. As an open-end fund, the Fund incurs certain additional expenses as a
result of the continuous offering and redemption of its shares. Since
December 29, 1995, the Fund has offered its shares in four classes
(currently, Class A, B, C and I). Class A, Class B and Class C performance
will vary from Class I performance due to the differences in sales charges
and expenses applicable to an investment in each such class.
(2) The Russell 1000 Index measures the performance of the 1,000 largest U.S.
companies based on total market capitalization. THE INDEX DOES NOT REFLECT
THE DEDUCTION OF SALES CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND
INVESTORS. Inception date for index data is September 3, 1991.
(3) The Lipper Growth Fund Index is the composite performance of the 30 largest
"growth" mutual funds, as categorized by Lipper Analytical Services, Inc.
Performance is presented net of the funds' fees and expenses and assumes
reinvestment of all dividends and distributions. HOWEVER, APPLICABLE SALES
CHARGES ARE NOT TAKEN INTO CONSIDERATION. Inception date for index data is
August 31, 1991.
(4) Inception dates are September 3, 1991, for the Fund's Class I shares and the
Russell 1000 Index, and August 31, 1991, for the Lipper Growth Fund Index.
(5) Inception date is December 29, 1995, for the Fund's Class A, Class B and
Class C shares and for index data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE FUND
PERFORMANCE. INVESTMENT RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE
SO THAT SUCH SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR
ORIGINAL COST.
5
<PAGE>
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Jundt Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BROADCASTING/CABLE (10.5%)
- ------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corporation (b) 39,900 $ 1,572,954 $ 2,793,000
Gemstar International Group Limited (b) 65,600 2,011,886 4,280,400
Time Warner Inc. 44,500 2,724,788 3,270,750
---------------------------------
6,309,628 10,344,150
---------------------------------
COMPUTER HARDWARE (6.4%)
- ------------------------------------------------------------------------------------------------------------------------
Dell Computer Corporation (b) 57,000 1,932,967 2,109,000
EMC Corporation (b) 20,000 910,008 1,100,000
Intel Corporation 52,700 2,960,945 3,135,650
---------------------------------
5,803,920 6,344,650
---------------------------------
COMPUTER SERVICES/SOFTWARE (10.6%)
- ------------------------------------------------------------------------------------------------------------------------
Compuware Corporation (b) 38,300 950,663 1,218,419
Microsoft Corporation (b) 58,400 2,584,050 5,266,950
Novell, Inc. (b) 80,200 2,007,599 2,125,300
Unisys Corporation (b) 49,200 1,895,288 1,915,725
---------------------------------
7,437,600 10,526,394
---------------------------------
ELECTRONICS (2.4%)
- ------------------------------------------------------------------------------------------------------------------------
Texas Instruments Incorporated 16,000 1,951,959 2,320,000
---------------------------------
INTERNET TECHNOLOGY (4.0%)
- ------------------------------------------------------------------------------------------------------------------------
America Online, Inc. (b) 25,000 1,626,398 2,762,500
Intuit, Inc. (b) 13,000 631,606 1,171,625
---------------------------------
2,258,004 3,934,125
---------------------------------
MEDICAL DEVICES/DRUGS (22.3%)
- ------------------------------------------------------------------------------------------------------------------------
Amgen Inc. (b) 15,800 922,476 961,825
Biomatrix, Inc. (b) 86,800 3,090,079 1,877,050
Centocor, Inc. (b) 64,100 2,517,439 2,988,662
Eli Lilly and Company 27,200 1,810,674 1,948,200
Immunex Corporation (b) 16,200 2,114,205 2,064,488
Medtronic, Inc. 13,600 747,966 1,059,100
Merck & Co., Inc. 26,200 1,928,047 1,938,800
Monsanto Company 107,400 4,704,473 4,235,588
Schering-Plough Corporation 51,900 2,696,606 2,750,700
VISX, Incorporated (b) 27,800 1,739,845 2,201,414
---------------------------------
22,271,810 22,025,827
---------------------------------
</TABLE>
See accompanying notes to schedule of investments.
6
<PAGE>
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Jundt Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) June 30, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RESTAURANTS (3.0%)
- ------------------------------------------------------------------------------------------------------------------------
Starbucks Corporation (b) 78,600 $ 2,679,472 $ 2,952,412
---------------------------------
RETAIL (13.3%)
- ------------------------------------------------------------------------------------------------------------------------
AutoZone, Inc. (b) 72,000 2,264,443 2,169,000
Bed, Bath & Beyond, Inc. (b) 34,400 592,351 1,324,400
The Home Depot, Inc. 94,648 1,493,400 6,098,880
Staples, Inc. (b) 79,489 685,631 2,459,191
Wal-Mart Stores, Inc. 22,200 949,996 1,071,150
---------------------------------
5,985,821 13,122,621
---------------------------------
TELECOMMUNICATION INFRASTRUCTURE (13.2%)
- ------------------------------------------------------------------------------------------------------------------------
ADC Telecommunications, Inc. (b) 41,600 1,290,562 1,895,400
Cisco Systems, Inc. (b) 78,600 1,728,365 5,069,700
Lucent Technologies, Inc. 17,400 600,010 1,173,413
Qwest Communications International Inc. (b) 42,200 1,284,715 1,395,237
Tellabs, Inc. (b) 53,000 1,493,784 3,580,813
---------------------------------
6,397,436 13,114,563
---------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (10.2%)
- ------------------------------------------------------------------------------------------------------------------------
MCI WorldCom, Inc. (b) 22,500 547,616 1,940,625
Nextel Communications, Inc. (b) 89,800 2,009,589 4,506,837
Nokia Corp., ADR 40,200 3,266,033 3,680,813
---------------------------------
5,823,238 10,128,275
---------------------------------
TOTAL COMMON STOCKS (95.9%) 66,918,888 94,813,017
---------------------------------
---------------------------------
</TABLE>
See accompanying notes to schedule of investments.
7
<PAGE>
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Jundt Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) June 30, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM SECURITIES
Principal Amount/
Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT (4.9%)
- ------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch Government
Securities, Inc., 4.50% acquired on 6/30/99 and due
7/01/99 with proceeds of $4,862,608 (collateralized by
$4,815,000 U.S. Treasury Note, 6.25%, due 2/28/02,
value including accrued interest, $5,618,863). $4,862,000 $ 4,862,000 $ 4,862,000
--------------------------------
MONEY MARKET FUND (0.1%)
- ------------------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (c) 96,083 96,083 96,083
--------------------------------
TOTAL SHORT-TERM SECURITIES (5.0%) 4,958,083 4,958,083
--------------------------------
--------------------------------
Total investments in securities (100.9%) $71,876,971 (d) 99,771,100
---------------
---------------
Liabilities in excess of other assets (-0.9%) (853,993)
-----------
NET ASSETS (100.0%) $98,917,107
-----------
-----------
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total
market value to total net assets.
(a) Securities are valued by procedures described in note 2
to the financial statements.
(b) Presently non-income producing.
(c) Rate changes to reflect market conditions. Rate disclosed is as of
June 30, 1999.
(d) Cost for federal income tax purposes at June 30, 1999, was $71,876,971.
The aggregate gross unrealized appreciation and depreciation of
investments in securities based on this cost were:
<TABLE>
- -----------------------------------------------------------------
<S> <C>
Gross unrealized appreciation $29,721,203
Gross unrealized depreciation (1,827,074)
-----------
Net unrealized appreciation $27,894,129
- -----------------------------------------------------------------
</TABLE>
8
<PAGE>
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JUNDT ASSOCIATES' APPROACH TO INVESTING: U.S. EMERGING GROWTH FUND
- -------------------------------------------------------------------------------
THE U.S. EMERGING GROWTH FUND CONCENTRATES ON SMALLER COMPANIES with at least
half the equity securities consisting of companies with annual revenues less
than $750 million. Within these parameters, the U.S. Emerging Growth Fund's
mission is to establish equity positions in 30 to 50 companies we believe to be
among the fastest-growing corporations in America. The focus is on companies we
believe are capable of achieving annual rates of revenue growth of 25% or
greater. See the Fund's prospectus for a description of the risks that may be
associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF JUNE 30, 1999
(AS A PERCENTAGE OF NET ASSETS)
- -------------------------------------------------------------------------------
[CHART]
[EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<S> <C>
Medical Devices/Drugs 5.9%
Broadcasting/Cable 4.3%
Computer Services/Software 29.8%
Wireless/Telecommunication Services 6.3%
Telecommunication Infrastructure 7.1%
Internet Technology 10.9%
Miscellaneous 4.0%
Healthcare 1.9%
Retail 3.5%
Restaurants 4.5%
</TABLE>
9
<PAGE>
- -------------------------------------------------------------------------------
PERFORMANCE DATA: U.S. EMERGING GROWTH FUND (UNAUDITED)
- -------------------------------------------------------------------------------
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- -------------------------------------------------------------------------------
[GRAPH]
[EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<S> <C>
JUNDT U.S. EMERGING $26,570
GROWTH FUND(1) (Class A shares without sales charge)*
JUNDT U.S. EMERGING GROWTH FUND(1) $25,175
(Class A shares with sales charge)
LIPPER SMALL CAP GROWTH FUND INDEX(2) $14,336
RUSSELL 2000 GROWTH INDEX(3) $14,273
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended June 30, 1999)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
- -------------------------------------------------------------------------------
<S> <C> <C>
JUNDT U.S EMERGING GROWTH CLASS A
Without sales charge* 25.60% 32.28%
With sales charge (a) 19.00 30.25
- -------------------------------------------------------------------------------
JUNDT U.S EMERGING GROWTH CLASS B
Without sales charge* 24.61 31.44
With sales charge (b) 20.61 31.00
- -------------------------------------------------------------------------------
JUNDT U.S EMERGING GROWTH CLASS C
Without sales charge* 24.58 31.42
With sales charge (c) 23.58 31.42
- -------------------------------------------------------------------------------
JUNDT U.S EMERGING GROWTH CLASS I 25.85 32.75
- -------------------------------------------------------------------------------
LIPPER SMALL CAP GROWTH FUND INDEX 1.92 10.70
- -------------------------------------------------------------------------------
RUSSELL 2000 GROWTH INDEX 8.30 10.86
- -------------------------------------------------------------------------------
</TABLE>
*Applicable to investors who purchased shares at net asset value
(without sales charges).
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares are
redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1) Total return is based on a hypothetical investment at the Fund's inception
on January 2, 1996. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING UPON
THE TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes
reinvestment of all dividends and distributions. One line reflects total
return with deduction of the current maximum initial sales charge of 5.25%,
and the other line reflects total return without such charge. The ending
value of investments in the Fund's Class B shares (reflecting the deduction
of the maximum deferred sales charge of 4%), Class C shares and Class I
shares (which are not subject to any sales charges) over the same time
period was $25,682, $25,972 and $26,902, respectively. Class B, Class C and
Class I performance will vary from Class A performance due to the
differences in sales charges and expenses applicable to an investment in
each such class.
(2) The Lipper Small Cap Growth Fund Index is the composite performance of the
30 largest "small company growth" mutual funds, as categorized by Lipper
Analytical Services, Inc. Performance is presented net of the funds' fees
and expenses and assumes reinvestment of all dividends and distributions.
HOWEVER, APPLICABLE SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION.
Inception date for index data is December 29, 1995.
(3) The Russell 2000 Growth Index measures the performance of the companies
within the Russell 2000 Index with relatively higher price-to-book ratios
and forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF
SALES CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS.
Inception date for index data is January 2, 1996.
(4) Inception dates are January 2, 1996, for the Fund's shares and the Russell
2000 Growth Index, and December 29, 1995, for Lipper Small Cap Growth Fund
Index data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE
OF FUTURE FUND PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT U.S.
EMERGING GROWTH FUND REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT
ASSOCIATES, INC., THE FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES.
INVESTMENT RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
INVESTMENTS IN SMALLER-CAPITALIZATION COMPANIES MAY EXPERIENCE GREATER DAILY
PRICE FLUCTUATIONS THAN INVESTMENTS IN LARGER COMPANIES.
10
<PAGE>
- --------------------------------------------------------------------------------
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BROADCASTING/CABLE (4.3%)
- -------------------------------------------------------------------------------------------------------------------------
Gemstar International Group Limited (b) 32,200 $ 1,007,144 $ 2,101,050
----------------------------------
COMPUTER SERVICES/SOFTWARE (29.8%)
- -------------------------------------------------------------------------------------------------------------------------
Best Software, Inc (b) 32,600 492,625 525,675
CSG Systems International Inc. (b) 19,800 497,475 518,513
Citrix Systems, Inc. (b) 12,800 425,632 723,200
DSET Corporation (b) 92,600 1,112,641 1,290,612
Eclipsys Corporation (b) 47,400 1,179,027 1,134,637
ESPS, Inc. (b) 25,000 187,500 185,938
Exchange Applications Inc. (b) 32,000 575,500 1,304,000
FactSet Research Systems Inc. (b) 13,200 372,358 747,450
F5 Networks, Inc. (b) 35,000 350,000 1,435,000
Great Plains Software, Inc. (b) 10,000 368,563 471,875
Legato Systems, Inc. (b) 11,100 478,075 641,025
Marimba Inc. (b) 6,000 285,313 316,125
New Era of Networks, Inc. (b) 22,300 844,494 979,806
nFront, Inc. (b) 35,000 445,556 531,563
Peregrine Systems, Inc. (b) 21,000 394,600 539,438
Saleslogix Corporation (b) 37,700 378,913 560,787
Sapient Corporation (b) 12,500 584,400 707,812
Security Dynamics Technologies, Inc. (b) 75,400 1,385,094 1,602,250
Veritas Software Corporation (b) 4,400 172,985 417,725
----------------------------------
10,530,751 14,633,431
----------------------------------
HEALTHCARE (1.9%)
- -------------------------------------------------------------------------------------------------------------------------
Sunrise Assisted Living, Inc. (b) 26,100 938,450 910,238
----------------------------------
</TABLE>
See accompanying notes to schedule of investments.
11
<PAGE>
- --------------------------------------------------------------------------------
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONTINUED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INTERNET TECHNOLOGY (10.9%)
- -------------------------------------------------------------------------------------------------------------------------
Ariba, Inc. (b) 1,000 $ 23,000 $ 97,250
autobytel.com inc. (b) 33,900 791,017 707,663
Concur Technologies, Inc. (b) 17,000 371,963 478,125
Preview Travel, Inc. (b) 64,700 1,178,851 1,419,356
StarMedia Network, Inc. (b) 40,200 1,647,032 2,577,825
Viant Corporation (b) 2,000 32,000 70,000
----------------------------------
4,043,863 5,350,219
----------------------------------
MEDICAL DEVICES/DRUGS (5.9%)
- -------------------------------------------------------------------------------------------------------------------------
Biomatrix, Inc. (b) 47,000 1,476,759 1,016,375
Eclipse Surgical Technologies, Inc. (b) 36,900 439,320 398,981
Heartport, Inc. (b) 268,000 1,487,057 636,500
Perclose, Inc. (b) 9,200 233,433 442,175
United Therapeutics Corporation (b) 35,500 431,281 421,563
----------------------------------
4,067,850 2,915,594
----------------------------------
RESTAURANTS (4.5%)
- -------------------------------------------------------------------------------------------------------------------------
Famous Dave's of America, Inc. (b) 402,000 1,358,032 1,017,562
P.F. Chang's China Bistro, Inc. (b) 23,300 454,163 503,863
Rubio's Restaurants, Inc. (b) 44,200 661,701 682,338
----------------------------------
2,473,896 2,203,763
----------------------------------
RETAIL (3.5%)
- -------------------------------------------------------------------------------------------------------------------------
Linens 'n Things, Inc. (b) 21,000 610,825 918,750
Select Comfort Corporation (b) 88,800 1,448,407 793,650
----------------------------------
2,059,232 1,712,400
----------------------------------
TELECOMMUNICATION INFRASTRUCTURE (7.1%)
- -------------------------------------------------------------------------------------------------------------------------
Com21, Inc. (b) 26,000 368,625 443,625
Ditech Communications Corporation (b) 50,000 550,000 1,000,000
Genesys Telecommunications Laboratories, Inc. (b) 20,100 399,338 502,500
Terayon Communication Systems, Inc. (b) 15,100 528,300 843,713
Uniphase Corporation (b) 4,300 224,480 713,800
----------------------------------
2,070,743 3,503,638
----------------------------------
</TABLE>
See accompanying notes to schedule of investments.
12
<PAGE>
- --------------------------------------------------------------------------------
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
WIRELESS/TELECOMMUNICATION SERVICES (6.3%)
- -------------------------------------------------------------------------------------------------------------------------
Pinnacle Holdings Inc. (b) 65,000 $ 1,147,613 $ 1,592,500
Viatel, Inc. (b) 26,700 1,254,425 1,498,536
----------------------------------
2,402,038 3,091,036
----------------------------------
MISCELLANEOUS (4.0%)
- -------------------------------------------------------------------------------------------------------------------------
AHLServices Inc. (b) 24,100 765,901 600,994
Macrovision Corporation (b) 18,500 992,604 1,385,187
----------------------------------
1,758,505 1,986,181
----------------------------------
TOTAL COMMON STOCKS (78.2%) 31,352,472 38,407,550
----------------------------------
----------------------------------
</TABLE>
See accompanying notes to schedule of investments.
13
<PAGE>
- --------------------------------------------------------------------------------
Jundt U.S. Emerging Growth Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM SECURITIES
Principal Amount/
Issue Number of Shares Cost Market Value (a)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS (18.5%)
- -------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch Government
Securities, Inc., 4.50% acquired on 6/30/99 and due
7/01/99 with proceeds of $4,550,569 (collateralized by
$4,665,000 U.S. Treasury Note, 5.25%, due 8/15/03,
value including accrued interest, $5,676,448) $4,550,000 $ 4,550,000 $ 4,550,000
Repurchase agreement with Morgan Stanley Securities, Inc.,
4.70% acquired on 6/30/99 and due 7/01/99 with proceeds
of $4,550,594 (collateralized by $3,165,000 U.S. Treasury
Bond, 14.00%, due 11/15/06, value including accrued
interest, $8,648,363) 4,550,000 4,550,000 4,550,000
---------------------------------
9,100,000 9,100,000
---------------------------------
MONEY MARKET FUND (3.0%)
- -------------------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (c) 1,468,790 1,468,790 1,468,790
---------------------------------
TOTAL SHORT-TERM SECURITIES (21.5%) 10,568,790 10,568,790
---------------------------------
---------------------------------
Total investments in securities (99.7%) $41,921,262 (d) 48,976,340
-----------
-----------
Other assets in excess of liabilities (0.3%) 140,933
-----------
NET ASSETS (100.0%) $49,117,273
-----------
-----------
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total market value
to total net assets.
(a) Securities are valued by procedures described in note 2 to the
financial statements.
(b) Presently non-income producing.
(c) Rate changes to reflect market conditions. Rate disclosed is as
of June 30, 1999.
(d) Cost for federal income tax purposes at June 30, 1999, was $41,921,262.
The aggregate gross unrealized appreciation and depreciation of
investments in securities based on this cost were:
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------
<S> <C>
Gross unrealized appreciation $ 9,733,729
Gross unrealized depreciation (2,678,651)
-----------
Net unrealized appreciation $ 7,055,078
- ------------------------------------------------------------------------
</TABLE>
14
<PAGE>
- -------------------------------------------------------------------------------
JUNDT ASSOCIATES' APPROACH TO INVESTING: OPPORTUNITY FUND
- -------------------------------------------------------------------------------
THE OPPORTUNITY FUND'S INVESTMENT OBJECTIVE IS TO PROVIDE CAPITAL APPRECIATION
BY utilizing an aggressive yet very flexible investment program. While a
percentage of equity holdings in the Opportunity Fund may at times mirror those
in the Growth and the U.S. Emerging Growth Funds, the Opportunity Fund also may
sell securities short, invest in options and futures contracts and leverage the
portfolio. These investment techniques, among others, may be utilized by Jundt
Associates, the investment adviser, to enable the Opportunity Fund to achieve
its objective of capital appreciation. See the Fund's prospectus for a
description of the risks that may be associated with an investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF JUNE 30, 1999
(AS A PERCENTAGE OF NET ASSETS)
- -------------------------------------------------------------------------------
[CHART]
[EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<S> <C>
Restaurants 3.8%
Computer Services/Software 13.4%
Broadcasting/Cable 13.4%
Healthcare 1.0%
Medical Devices/Drugs 17.6%
Internet Technology 2.9%
Wireless/Telecommunication Services 16.6%
Electronics 3.4%
Telecommunication Infrastructure 9.1%
Computer Hardware 8.1%
Retail 7.5%
</TABLE>
15
<PAGE>
- -------------------------------------------------------------------------------
PERFORMANCE DATA: OPPORTUNITY FUND (UNAUDITED)
- -------------------------------------------------------------------------------
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- -------------------------------------------------------------------------------
[GRAPH]
[EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<S> <C>
JUNDT OPPORTUNITY FUND(1) $24,854
(Class A shares without sales charge)*
JUNDT OPPORTUNITY FUND(1)
(Class A shares with sales charge) $23,549
RUSSELL 1000 GROWTH INDEX(2) $19,692
LIPPER CAPITAL APPRECIATION FUND INDEX(3) $16,565
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS (for periods ended June 30, 1999)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
- -------------------------------------------------------------------------------
<S> <C> <C>
JUNDT OPPORTUNITY CLASS A
Without sales charge* 51.36% 43.73%
With sales charge (a) 43.42 40.68
- -------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS B
Without sales charge* 50.16 42.72
With sales charge (b) 46.16 42.01
- -------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS C
Without sales charge* 50.11 42.65
With sales charge (c) 49.11 42.65
- -------------------------------------------------------------------------------
JUNDT OPPORTUNITY CLASS I 51.65 44.12
- -------------------------------------------------------------------------------
RUSSELL 1000 GROWTH INDEX 27.26 31.00
- -------------------------------------------------------------------------------
LIPPER CAPITAL APPRECIATION FUND INDEX 20.28 22.28
- -------------------------------------------------------------------------------
</TABLE>
* Applicable to investors who purchased shares at net asset value
(without sales charges).
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares are
redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1) Total return is based on a hypothetical investment at the Fund's inception
on December 26, 1996. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING
UPON THE TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes
reinvestment of all dividends and distributions. One line reflects total
return with deduction of the current maximum initial sales charge of 5.25%,
and the other line reflects total return without such charge. The ending
value of investments in the Fund's Class B shares (reflecting the deduction
of the maximum deferred sales charge of 4%), Class C shares and Class I
shares (which are not subject to any sales charges) over the same time
period was $24,115, $24,389 and $25,021, respectively. Class B, Class C and
Class I performance will vary from Class A performance due to the
differences in sales charges and expenses applicable to an investment in
each such class.
(2) The Russell 1000 Growth Index measures the performance of the companies
within the Russell 1000 Index with relatively higher price-to-book ratios
and forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF
SALES CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS.
Inception date for index data is December 26, 1996.
(3) The Lipper Capital Appreciation Fund Index is the composite performance of
the 30 largest "capital appreciation" mutual funds, as categorized by Lipper
Analytical Services, Inc. Performance is presented net of the funds' fees
and expenses and assumes reinvestment of all dividends and distributions.
HOWEVER, APPLICABLE SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION.
Inception date for index data is December 26, 1996.
(4) Inception date is December 26, 1996, for both the Fund's shares and index
data.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT OPPORTUNITY FUND
REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC.,
THE FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES. INVESTMENT
RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
SELLING SECURITIES SHORT, EMPLOYING LEVERAGE AND INVESTING IN OPTIONS AND
FUTURES CONTRACTS INVOLVE ADDITIONAL INVESTMENT RISK.
16
<PAGE>
- --------------------------------------------------------------------------------
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BROADCASTING/CABLE (13.4%)
- ------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corporation (b) 39,100 $1,868,045 $2,737,000
Gemstar International Group Limited (b) 46,000 1,541,521 3,001,500
Time Warner Inc. 29,100 1,840,575 2,138,850
TV Guide, Inc., Class A (b) 44,600 2,043,878 1,633,475
------------------------------
7,294,019 9,510,825
------------------------------
COMPUTER HARDWARE (8.1%)
- ------------------------------------------------------------------------------------------------------------------------
Dell Computer Corporation (b) 79,300 2,695,072 2,934,100
EMC Corporation (b) 13,000 604,624 715,000
Intel Corporation 36,200 1,950,275 2,153,900
------------------------------
5,249,971 5,803,000
------------------------------
COMPUTER SERVICES/SOFTWARE (13.4%)
- ------------------------------------------------------------------------------------------------------------------------
Informix Corporation (b) 212,500 1,822,627 1,812,891
Microsoft Corporation (b)(e) 22,800 1,449,225 2,056,275
Network Appliance, Inc. (b) 12,900 506,614 720,787
Novell, Inc. (b) 104,500 1,392,725 2,769,250
Unisys Corporation (b) 33,600 1,317,920 1,308,300
Veritas Software Corporation (b) 9,400 446,075 892,412
------------------------------
6,935,186 9,559,915
------------------------------
ELECTRONICS (3.4%)
- ------------------------------------------------------------------------------------------------------------------------
Texas Instruments Incorporated 16,500 2,025,447 2,392,500
------------------------------
HEALTHCARE (1.0%)
- ------------------------------------------------------------------------------------------------------------------------
Biogen, Inc. (b) 10,600 410,491 681,713
------------------------------
INTERNET TECHNOLOGY (2.9%)
- ------------------------------------------------------------------------------------------------------------------------
Ask Jeeves, Inc. (b) 2,000 28,000 28,000
Starmedia Network, Inc. (b) 31,600 1,293,479 2,026,350
------------------------------
1,321,479 2,054,350
------------------------------
</TABLE>
See accompanying notes to schedule of investments.
17
<PAGE>
- --------------------------------------------------------------------------------
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
MEDICAL DEVICES/DRUGS (17.6%)
- ------------------------------------------------------------------------------------------------------------------------
Amgen Inc. (b) 8,400 $ 490,430 $ 511,350
Biomatrix, Inc. (b) 87,900 2,912,035 1,900,837
Centocor, Inc. (b) 43,600 1,837,436 2,032,850
Eli Lilly and Company 12,800 848,974 916,800
Merck & Co., Inc. 17,900 1,317,250 1,324,600
Monsanto Company 112,200 4,964,043 4,424,887
VISX, Incorporated (b) 18,200 1,136,628 1,441,213
------------------------------
13,506,796 12,552,537
------------------------------
RESTAURANTS (3.8%)
- ------------------------------------------------------------------------------------------------------------------------
Starbucks Corporation (b) 71,900 2,592,110 2,700,744
------------------------------
RETAIL (7.5%)
- ------------------------------------------------------------------------------------------------------------------------
Best Buy Co., Inc. (b) 10,800 234,549 729,000
The Home Depot, Inc. (e) 22,000 761,709 1,417,625
PETsMART, Inc. (b)(e) 107,300 661,305 1,099,825
Select Comfort Corporation (b) 163,100 1,321,257 1,457,706
Skechers U.S.A., Inc. (b) 60,000 676,800 630,000
------------------------------
3,655,620 5,334,156
------------------------------
TELECOMMUNICATION INFRASTRUCTURE (9.1%)
- ------------------------------------------------------------------------------------------------------------------------
At Home Corporation (b) 7,400 164,453 399,138
Cisco Systems, Inc. (b)(e) 30,300 904,644 1,954,350
Network Plus Corp. (b) 27,500 778,313 574,063
Qwest Communications International Inc. (b)(e) 41,400 900,750 1,368,787
Time Warner Telecom Inc. (b) 75,300 1,758,777 2,183,700
------------------------------
4,506,937 6,480,038
------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (16.6%)
- ------------------------------------------------------------------------------------------------------------------------
Echostar Communications Corporation, Class A (b) 19,000 1,034,916 2,915,312
MCI WorldCom, Inc. (b) 10,900 493,906 940,125
Nextel Communications, Inc. (b) 40,600 1,437,900 2,037,613
Pinnacle Holdings Inc. (b) 90,000 1,293,750 2,205,000
QUALCOMM Incorporated (b) 11,000 1,300,875 1,578,500
Viatel, Inc. (b) 38,800 1,954,698 2,177,650
------------------------------
7,516,045 11,854,200
------------------------------
TOTAL COMMON STOCKS (96.8%) 55,014,101 68,923,978
------------------------------
------------------------------
</TABLE>
See accompanying notes to schedule of investments.
18
<PAGE>
- --------------------------------------------------------------------------------
Jundt Opportunity Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM SECURITIES
Principal Amount/
Issue Number of Shares Cost Market Value (a)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT (4.4%)
- -------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch Government
Securities, Inc., 4.50% acquired on 6/30/99 and due
7/01/99 with proceeds of $3,172,397 (collateralized by
$3,250,000 U.S. Treasury Note, 5.25%, due 8/15/03,
value including accrued interest, $3,954,653). $3,172,000 $ 3,172,000 $ 3,172,000
---------------------------------
MONEY MARKET FUND (0.1%)
- -------------------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (c) 36,783 36,783 36,783
---------------------------------
TOTAL SHORT-TERM SECURITIES (4.5%) 3,208,783 3,208,783
---------------------------------
---------------------------------
Total investments in securities (101.3%) $58,222,884 (d) 72,132,761
-----------
-----------
Liabilities in excess of other assets (-1.3%) (913,687)
------------
NET ASSETS (100.0%) $71,219,074
------------
------------
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total
market value to total net assets.
(a) Securities are valued by procedures described in note 2
to the financial statements.
(b) Presently non-income producing.
(c) Rate changes to reflect market conditions. Rate disclosed is as
of June 30, 1999.
(d) Cost for federal income tax purposes at June 30, 1999, was $58,222,884.
The aggregate gross unrealized appreciation and depreciation of
investments in securities based on this cost were:
<TABLE>
<CAPTION>
-------------------------------------------------
<S> <C>
Gross unrealized appreciation $16,141,039
Gross unrealized depreciation (2,231,162)
-----------
Net unrealized appreciation $13,909,877
-------------------------------------------------
</TABLE>
(e) Security is pledged as collateral for Uncovered Short Sales entered
into as of June 30, 1999:
<TABLE>
<CAPTION>
-------------------------------------------------
Shares Issue Market Value
-------------------------------------------------
<C> <S> <C>
10,000 The St. Paul Company $(318,125)
-------------------------------------------------
Total (Proceeds--$345,013)
-------------------------------------------------
</TABLE>
19
<PAGE>
- -------------------------------------------------------------------------------
JUNDT ASSOCIATES' APPROACH TO INVESTING: TWENTY-FIVE FUND
- -------------------------------------------------------------------------------
THE TWENTY-FIVE FUND'S INVESTMENT OBJECTIVE IS TO PROVIDE LONG-TERM CAPITAL
appreciation by investing in a more concentrated portfolio of approximately 25
issues of common stock. In selecting investments for the Fund's portfolio, Jundt
Associates employs a fundamental "bottom up" approach in seeking to identify
companies with strong revenue growth. The companies in this Fund will typically
be companies that also are represented in the other Jundt Funds. Because this
Fund is a non-diversified Fund, Jundt Associates may, with respect to 50% of the
assets of the Fund, use broad investment discretion in the pursuit of the
investment objective. However, investment company regulations require that at
least 50% of the Fund's assets must be fully diversified. See the Fund's
prospectus for a description of the risks that may be associated with an
investment in the Fund.
INDUSTRY SECTORS REPRESENTED IN THE FUND'S PORTFOLIO AS OF JUNE 30, 1999
(AS A PERCENTAGE OF NET ASSETS)
- -------------------------------------------------------------------------------
[CHART]
[EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<S> <C>
Restaurants 3.7%
Computer Services/Software 12.7%
Computer Hardware 3.8%
Medical Devices/Drugs 15.8%
Broadcasting/Cable 9.4%
Telecommunication Infrastructure 11.9%
Wireless/Telecommunication Services 14.3%
Internet Technology 4.7%
Retail 2.9%
</TABLE>
20
<PAGE>
- -------------------------------------------------------------------------------
PERFORMANCE DATA: TWENTY-FIVE FUND (UNAUDITED)
- -------------------------------------------------------------------------------
TOTAL RETURN BASED ON A $10,000 INVESTMENT
- -------------------------------------------------------------------------------
[GRAPH]
[EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC]
<TABLE>
<S> <C>
JUNDT TWENTY-FIVE FUND(1) $21,035
(Class A shares without sales charge)*
JUNDT TWENTY-FIVE FUND(1) $19,930
(Class A shares with sales charge)
RUSSELL 1000 GROWTH INDEX(2) $15,320
LIPPER CAPITAL APPRECIATION FUND INDEX(3) $13,794
</TABLE>
AGGREGATE ANNUAL TOTAL RETURNS (for periods ended June 30, 1999)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
SINCE
1-YEAR INCEPTION(4)
- -------------------------------------------------------------------------------
<S> <C> <C>
JUNDT TWENTY-FIVE CLASS A
Without sales charge* 60.81% 64.39%
With sales charge (a) 52.37 58.57
- -------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS B
Without sales charge* 59.14 62.91
With sales charge (b) 55.14 60.80
- -------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS C
Without sales charge* 59.65 63.26
With sales charge (c) 58.65 63.26
- -------------------------------------------------------------------------------
JUNDT TWENTY-FIVE CLASS I 61.09 64.75
- -------------------------------------------------------------------------------
RUSSELL 1000 GROWTH INDEX 27.26 33.00
- -------------------------------------------------------------------------------
LIPPER CAPITAL APPRECIATION
FUND INDEX 20.28 23.92
- -------------------------------------------------------------------------------
</TABLE>
* Applicable to investors who purchased shares at net asset value (without
sales charges).
(a) maximum initial sales charge of 5.25%.
(b) a contingent deferred sales charge of up to 4% will be imposed if shares
are redeemed within six years of purchase.
(c) a contingent deferred sales charge of 1% will be imposed if shares are
redeemed within one year of purchase.
(1) Total return is based on a hypothetical investment at the Fund's inception
on December 31, 1997. ACTUAL PERFORMANCE OF INVESTORS WILL VARY DEPENDING
UPON THE TIMING OF THEIR INVESTMENTS IN THE FUND. Total return assumes
reinvestment of all dividends and distributions. One line reflects total
return with deduction of the current maximum initial sales charge of 5.25%,
and the other line reflects total return without such charge. The ending
value of investments in the Fund's Class B shares (reflecting the deduction
of the maximum deferred sales charge of 4%), Class C shares and Class I
shares (which are not subject to any sales charges) over the same time
period was $20,351, $20,818 and $21,102, respectively. Class B, Class C and
Class I performance will vary from Class A performance due to the
differences in sales charges and expenses applicable to an investment in
each such class.
(2) The Russell 1000 Growth Index measures the performance of the companies
within the Russell 1000 Index with relatively higher price-to-book ratios
and forecasted growth values. THE INDEX DOES NOT REFLECT THE DEDUCTION OF
SALES CHARGES AND EXPENSES THAT ARE BORNE BY MUTUAL FUND INVESTORS.
Inception date for index data is December 31, 1997.
(3) The Lipper Capital Appreciation Fund Index is the composite performance of
the 30 largest "capital appreciation" mutual funds, as categorized by Lipper
Analytical Services, Inc. Performance is presented net of the funds' fees
and expenses and assumes reinvestment of all dividends and distributions.
HOWEVER, APPLICABLE SALES CHARGES ARE NOT TAKEN INTO CONSIDERATION.
Inception date for index data is December 31, 1997.
(4) Inception date is December 31, 1997, for the Fund's shares.
PAST PERFORMANCE OF THE FUND SHOULD NOT BE CONSIDERED PREDICTIVE OF FUTURE
FUND PERFORMANCE. PERFORMANCE INFORMATION RELATING TO JUNDT TWENTY-FIVE FUND
REFLECTS THE VOLUNTARY PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC.,
THE FUND'S INVESTMENT ADVISER, OF CERTAIN FEES AND EXPENSES. INVESTMENT
RETURN AND PRINCIPAL VALUE OF FUND SHARES WILL FLUCTUATE SO THAT SUCH
SHARES, WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
NON-DIVERSIFIED MUTUAL FUNDS MAY EXPERIENCE GREATER PRICE VOLATILITY THAN
DIVERSIFIED MUTUAL FUNDS.
21
<PAGE>
- --------------------------------------------------------------------------------
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS (UNAUDITED) June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
BROADCASTING/CABLE (9.4%)
- ------------------------------------------------------------------------------------------------------------------------
Cablevision Systems Corporation (b) 22,000 $ 1,268,435 $1,540,000
Gemstar International Group Limited (b) 30,000 1,003,668 1,957,500
-------------------------------
2,272,103 3,497,500
-------------------------------
COMPUTER HARDWARE (3.8%)
- ------------------------------------------------------------------------------------------------------------------------
Dell Computer Corporation (b) 38,700 1,339,931 1,431,900
-------------------------------
COMPUTER SERVICES/SOFTWARE (12.7%)
- ------------------------------------------------------------------------------------------------------------------------
Microsoft Corporation (b) 11,000 782,263 992,062
Network Appliance, Inc. (b) 7,600 339,118 424,650
Novell, Inc. (b) 52,400 1,262,662 1,388,600
Sapient Corporation (b) 8,200 497,238 464,325
Siebel Systems, Inc. (b) 16,500 626,183 1,095,187
Veritas Software Corporation (b) 4,000 221,697 379,750
-------------------------------
3,729,161 4,744,574
-------------------------------
INTERNET TECHNOLOGY (4.7%)
- ------------------------------------------------------------------------------------------------------------------------
America Online, Inc. (b) 6,000 626,171 663,000
Intuit, Inc. (b) 12,100 896,256 1,090,513
-------------------------------
1,522,427 1,753,513
-------------------------------
MEDICAL DEVICES/DRUGS (15.8%)
- ------------------------------------------------------------------------------------------------------------------------
Biomatrix, Inc. (b) 50,300 1,673,722 1,087,738
Immunex Corporation (b) 8,100 1,057,635 1,032,244
Monsanto Company 53,800 2,364,034 2,121,737
Perclose, Inc. (b) 7,300 185,230 350,856
VISX, Incorporated (b) 16,200 1,027,603 1,282,838
-------------------------------
6,308,224 5,875,413
-------------------------------
</TABLE>
See accompanying notes to schedule of investments.
22
<PAGE>
- --------------------------------------------------------------------------------
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONTINUED) June 30,1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
COMMON STOCKS (CONCLUDED)
Industry Description and Issue Number of Shares Cost Market Value (a)
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
RESTAURANTS (3.7%)
- ------------------------------------------------------------------------------------------------------------------------
Starbucks Corporation (b) 36,200 $ 1,285,957 $1,359,763
-------------------------------
RETAIL (2.9%)
- ------------------------------------------------------------------------------------------------------------------------
The Home Depot, Inc. 16,800 962,411 1,082,550
-------------------------------
TELECOMMUNICATION INFRASTRUCTURE (11.9%)
- ------------------------------------------------------------------------------------------------------------------------
Cisco Systems, Inc. (b) 18,800 925,837 1,212,600
QWest Communications International, Inc. (b) 25,800 708,980 853,013
Tellabs, Inc. (b) 9,200 298,938 621,575
Time Warner Telecom Inc. (b) 60,000 1,391,189 1,740,000
-------------------------------
3,324,944 4,427,188
-------------------------------
WIRELESS/TELECOMMUNICATION SERVICES (14.3%)
- ------------------------------------------------------------------------------------------------------------------------
EchoStar Communications Corporation, Class A (b) 9,100 646,088 1,396,281
MCI WorldCom, Inc. (b) 8,400 776,212 724,500
Nokia Corp., ADR 15,100 1,326,034 1,382,594
Viatel, Inc. (b) 31,900 1,469,600 1,790,387
-------------------------------
4,217,934 5,293,762
-------------------------------
TOTAL COMMON STOCKS (79.2%) 24,963,092 29,466,163
-------------------------------
-------------------------------
</TABLE>
See accompanying notes to schedule of investments.
23
<PAGE>
- -------------------------------------------------------------------------------
Jundt Twenty-Five Fund
SCHEDULE OF INVESTMENTS (UNAUDITED)(CONCLUDED) June 30, 1999
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHORT-TERM SECURITIES
Principal Amount/
Issue Number of Shares Cost Market Value (a)
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT (20.9%)
- -------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with Merrill Lynch Government
Securities, Inc., 4.50% acquired on 6/30/99 and due
7/01/99 with proceeds of $7,783,973 (collateralized by
$7,975,000 U.S. Treasury Note, 5.25%, due 8/15/03
value including accrued interest, $9,804,734). $7,783,000 $ 7,783,000 $ 7,783,000
----------------------------------
MONEY MARKET FUND (0.1%)
- -------------------------------------------------------------------------------------------------------------------------
Norwest Treasury Fund, 5.00% (c) 19,749 19,749 19,749
----------------------------------
TOTAL SHORT-TERM SECURITIES (21.0%) 7,802,749 7,802,749
----------------------------------
----------------------------------
Total investments in securities (100.2%) $ 32,765,841 (d) 37,268,912
------------
------------
Liabilities in excess of other assets (-0.2%) (54,785)
-----------
NET ASSETS (100.0%) $37,214,127
-----------
-----------
</TABLE>
Notes to Schedule of Investments:
Percentage of investments as shown is the ratio of the total
market value to total net assets.
(a) Securities are valued by procedures described in note 2
to the financial statements.
(b) Presently non-income producing.
(c) Rate changes to reflect market conditions. Rate disclosed is
as of June 30, 1999.
(d) Cost for federal income tax purposes at June 30,1999, was
$32,765,841. The aggregate gross unrealized appreciation and
depreciation of investments in securities based on this cost were:
<TABLE>
<CAPTION>
-------------------------------------------------
<S> <C>
Gross unrealized appreciation $5,441,368
Gross unrealized depreciation (938,297)
----------
Net unrealized appreciation $4,503,071
-------------------------------------------------
</TABLE>
24
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED) June 30, 1999
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
Jundt Jundt U.S. Jundt Jundt
Growth Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
- ----------------------------------------------------------------------------------------------------------------------------
Investment in securities, at market value (note 2)
including repurchase agreements of $4,862,000;
$9,100,000; $3,172,000; and $7,783,000, respectively
(identified cost: $71,876,971; $41,921,262;
$58,222,884; and $32,765,841, respectively) $ 99,771,100 $48,976,340 $72,132,761 $37,268,912
Cash -- -- 840 --
Receivable for securities sold 996,042 1,127,388 -- 935,744
Receivable for capital shares sold 96,857 356,272 396,731 491,063
Receivable from brokers for proceeds
on securities sold short -- -- 345,013 --
Receivable from investment adviser -- 14,027 23,973 8,135
Dividends and accrued interest receivable 9,879 1,163 5,230 7,483
Deferred organizational costs -- 26,144 21,178 22,515
Prepaid expenses and other assets 6,637 8,209 8,773 4,486
---------------------------------------------------------
Total assets 100,880,515 50,509,543 72,934,499 38,738,338
---------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------------------------
Common stocks sold short, at market value
(proceeds--$345,013) -- -- 318,125 --
Payable for securities purchased 1,615,807 1,222,032 806,313 1,326,033
Payable for capital shares redeemed 48,298 25,120 368,335 73,817
Accrued investment advisory fee 77,827 36,709 70,616 36,998
Accrued administrative fee 15,565 7,342 10,864 5,660
Accrued distribution fee 2,272 20,907 25,848 13,655
Short sale dividends payable -- -- 2,600 --
Accrued expenses and other liabilities 203,639 80,160 112,724 68,048
---------------------------------------------------------
Total liabilities 1,963,408 1,392,270 1,715,425 1,524,211
---------------------------------------------------------
Net assets applicable to outstanding capital stock $ 98,917,107 $49,117,273 $71,219,074 $37,214,127
---------------------------------------------------------
---------------------------------------------------------
</TABLE>
- -------------------------------------------------------------------------------
See accompanying notes to financial statements. 25
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES (CONCLUDED)
<TABLE>
<CAPTION>
Jundt Jundt U.S. Jundt Jundt
Growth Emerging Opportunity Twenty-Five
Fund Growth Fund Fund Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NET ASSETS CONSIST OF
- -------------------------------------------------------------------------------------------------------------------------------
Capital stock (note 1) $56,896,285 $43,472,463 $58,480,303 $31,037,049
Accumulated net investment loss (411,596) (193,216) (422,918) (110,148)
Accumulated net realized gain (loss) on investments 14,538,289 (1,217,052) (775,076) 1,784,155
Unrealized appreciation on investments 27,894,129 7,055,078 13,936,765 4,503,071
-------------------------------------------------------------
Total, representing net assets applicable to
outstanding capital stock $98,917,107 $49,117,273 $71,219,074 $37,214,127
-------------------------------------------------------------
-------------------------------------------------------------
Net assets applicable to outstanding Class A shares $ 2,239,046 $15,874,294 $22,744,635 $12,789,935
-------------------------------------------------------------
-------------------------------------------------------------
Net assets applicable to outstanding Class B shares $ 1,841,367 $14,566,854 $17,047,071 $ 9,366,177
-------------------------------------------------------------
-------------------------------------------------------------
Net assets applicable to outstanding Class C shares $ 719,552 $ 9,787,713 $11,605,574 $ 5,863,626
-------------------------------------------------------------
-------------------------------------------------------------
Net assets applicable to outstanding Class I shares $94,117,142 $ 8,888,412 $19,821,794 $ 9,194,389
-------------------------------------------------------------
-------------------------------------------------------------
SHARES OUTSTANDING AND NET ASSET VALUE PER SHARE
- -------------------------------------------------------------------------------------------------------------------------------
Class A shares of capital stock outstanding:
121,457; 1,060,690; 1,294,592; and 663,285, respectively $18.43 $14.97 $17.57 $19.28
-------------------------------------------------------------
-------------------------------------------------------------
Class B shares of capital stock outstanding:
102,878; 999,882; 988,700; and 492,425, respectively $17.90 $14.57 $17.24 $19.02
-------------------------------------------------------------
-------------------------------------------------------------
Class C shares of capital stock outstanding:
40,144; 671,645; 674,750; and 306,486, respectively $17.92 $14.57 $17.20 $19.13
-------------------------------------------------------------
-------------------------------------------------------------
Class I shares of capital stock outstanding:
5,044,539; 583,174; 1,119,694; and 475,631, respectively $18.66 $15.24 $17.70 $19.33
-------------------------------------------------------------
-------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 26
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) JUNE 30, 1999
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Jundt Jundt U.S. Emerging Jundt Jundt
For the six months ended 6/30/99 Growth Fund Growth Fund Opportunity Fund Twenty-Five Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME
- ----------------------------------------------------------------------------------------------------------------------------------
Interest $ 328,089 $ 303,691 $ 356,736 $ 181,086
Dividends 80,327 1,320 35,725 10,103
----------------------------------------------------------------
408,416 305,011 392,461 191,189
----------------------------------------------------------------
EXPENSES (note 4)
- ----------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee 470,262 189,751 372,722 162,165
Transfer agent fee 102,344 62,941 84,586 56,547
Administrative fee 94,052 37,950 57,342 24,901
Registration fee 32,756 23,231 27,405 22,644
Legal fees 23,537 9,238 17,700 7,065
Reports to shareholders 27,517 7,994 10,863 3,537
Directors' fees 22,779 8,089 12,848 4,929
Custodian fee 10,481 9,781 14,253 10,090
Amortization of deferred organizational costs -- 8,601 4,212 3,184
Audit fees 14,222 6,719 13,573 6,015
Dividends on short sales -- -- 21,439 --
Account maintenance fee:
Class A 1,895 14,959 22,260 10,882
Class B 1,299 13,516 16,219 6,652
Class C 641 8,039 9,855 3,591
Distribution fee:
Class B 3,897 40,548 48,657 19,955
Class C 1,924 24,116 29,564 10,772
Other 12,369 8,137 9,285 7,396
----------------------------------------------------------------
Total expenses before reimbursement 819,975 473,610 772,783 360,325
Reimbursement of expenses -- (78,318) (82,782) (58,988)
----------------------------------------------------------------
Expenses after reimbursement 819,975 395,292 690,001 301,337
----------------------------------------------------------------
Net investment loss (411,559) (90,281) (297,540) (110,148)
----------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investments and futures
transactions (note 3) 16,024,739 3,404 2,133,870 1,917,539
Net realized loss on short sale transactions (note 3) -- -- (803,214) --
----------------------------------------------------------------
Net realized gain on investments, futures
transactions and short sale transactions 16,024,739 3,404 1,330,656 1,917,539
----------------------------------------------------------------
Net change in unrealized appreciation (depreciation)
on investments (5,954,068) 964,608 4,894,233 2,842,394
----------------------------------------------------------------
Net gain on investments 10,070,671 968,012 6,224,889 4,759,933
----------------------------------------------------------------
Net increase in net assets resulting from operations $ 9,659,112 $ 877,731 $5,927,349 $4,649,785
----------------------------------------------------------------
----------------------------------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 27
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Jundt Growth Fund
---------------------------------------
For the six months ended Year ended
6/30/99 (unaudited) 12/31/98
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- -------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (411,559) $ (1,020,460)
Net realized gain on investments, futures transactions and
short sale transactions 16,024,739 16,059,306
Net change in unrealized appreciation (depreciation) on investments (5,954,068) 15,406,886
---------------------------------------
Net increase in net assets resulting from operations 9,659,112 30,445,732
---------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
- -------------------------------------------------------------------------------------------------------------------------
Investment income--net -- --
Realized capital gains--net -- (16,565,764)
---------------------------------------
Total dividends and distributions to shareholders -- (16,565,764)
---------------------------------------
CAPITAL SHARE TRANSACTIONS
- -------------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 1,557,995 349,721
Class B shares 1,295,969 253,844
Class C shares 437,664 172,098
Class I shares 354,576 418,518
Distributions reinvested:
Class A shares -- 111,672
Class B shares -- 83,942
Class C shares -- 35,442
Class I shares -- 10,672,487
Cost of shares redeemed:
Class A shares (392,386) (218,461)
Class B shares (67,031) (46,703)
Class C shares (20,477) (45,271)
Class I shares (4,385,578) (17,026,901)
---------------------------------------
Net increase (decrease) in net assets
from capital share transactions (1,219,268) (5,239,612)
---------------------------------------
NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 8,439,844 8,640,356
Net assets at beginning of period 90,477,263 81,836,907
---------------------------------------
Net assets at end of period $98,917,107 $90,477,263
---------------------------------------
---------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 28
<PAGE>
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Jundt U.S. Emerging Growth Fund
----------------------------------------
For the six months ended Year ended
6/30/99 (unaudited) 12/31/98
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- --------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (90,281) $ (277,188)
Net realized gain on investments, futures transactions and
short sale transactions 3,404 3,540,329
Net change in unrealized appreciation (depreciation) on investments 964,608 4,632,268
----------------------------------------
Net increase in net assets resulting from operations 877,731 7,895,409
----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------------
Investment income--net -- --
Realized capital gains--net -- (4,838,503)
----------------------------------------
Total dividends and distributions to shareholders -- (4,838,503)
----------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 11,227,968 5,541,874
Class B shares 6,611,639 4,835,251
Class C shares 7,388,077 2,295,856
Class I shares 307,767 321,016
Distributions reinvested:
Class A shares -- 1,068,038
Class B shares -- 1,322,588
Class C shares -- 428,317
Class I shares -- 744,262
Cost of shares redeemed:
Class A shares (3,737,016) (1,264,297)
Class B shares (775,830) (2,130,547)
Class C shares (1,201,576) (1,225,401)
Class I shares (1,746,231) (4,024,032)
----------------------------------------
Net increase (decrease) in net assets
from capital share transactions 18,074,798 7,912,925
----------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 18,952,529 10,969,831
Net assets at beginning of period 30,164,744 19,194,913
----------------------------------------
Net assets at end of period $49,117,273 $30,164,744
----------------------------------------
----------------------------------------
<CAPTION>
Jundt Opportunity Fund
----------------------------------------
For the six months ended Year ended
6/30/99 (unaudited) 12/31/98
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- --------------------------------------------------------------------------------------------------------------------------
Net investment loss $ (297,540) $ (242,312)
Net realized gain on investments, futures transactions and
short sale transactions 1,330,656 1,812,334
Net change in unrealized appreciation (depreciation) on investments 4,894,233 9,092,058
----------------------------------------
Net increase in net assets resulting from operations 5,927,349 10,662,080
----------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
- --------------------------------------------------------------------------------------------------------------------------
Investment income--net -- --
Realized capital gains--net -- (3,693,953)
----------------------------------------
Total dividends and distributions to shareholders -- (3,693,953)
----------------------------------------
CAPITAL SHARE TRANSACTIONS
- --------------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 14,483,484 7,610,926
Class B shares 8,568,895 5,002,356
Class C shares 8,245,024 1,973,366
Class I shares 225,894 8,867,163
Distributions reinvested:
Class A shares -- 799,925
Class B shares -- 757,789
Class C shares -- 236,036
Class I shares -- 1,653,982
Cost of shares redeemed:
Class A shares (3,359,157) (954,361)
Class B shares (1,237,546) (1,022,932)
Class C shares (218,944) (202,152)
Class I shares (601,598) (286,640)
----------------------------------------
Net increase (decrease) in net assets
from capital share transactions 26,106,052 24,435,458
----------------------------------------
NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------
Total increase in net assets 32,033,401 31,403,585
Net assets at beginning of period 39,185,673 7,782,088
----------------------------------------
Net assets at end of period $71,219,074 $39,185,673
----------------------------------------
----------------------------------------
<CAPTION>
Jundt Twenty-Five Fund
------------------------------------
For the six months ended Year ended
6/30/99 (unaudited) 12/31/98
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------
Net investment loss $ (110,148) $ (32,425)
Net realized gain on investments, futures transactions and
short sale transactions 1,917,539 502,873
Net change in unrealized appreciation (depreciation) on investments 2,842,394 1,660,677
------------------------------------
Net increase in net assets resulting from operations 4,649,785 2,131,125
------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------------------------------
Investment income--net -- (33,217)
Realized capital gains--net -- (636,523)
------------------------------------
Total dividends and distributions to shareholders -- (669,740)
------------------------------------
CAPITAL SHARE TRANSACTIONS
- ----------------------------------------------------------------------------------------------------------------------
Net proceeds from shares sold:
Class A shares 8,984,099 2,918,424
Class B shares 6,118,049 2,056,058
Class C shares 4,843,954 524,732
Class I shares 4,736,049 873,435
Distributions reinvested:
Class A shares -- 212,257
Class B shares -- 167,369
Class C shares -- 45,288
Class I shares -- 197,266
Cost of shares redeemed:
Class A shares (977,891) (314,188)
Class B shares (23,852) (2,762)
Class C shares (164,943) (4,313)
Class I shares (46,786) (39,328)
------------------------------------
Net increase (decrease) in net assets
from capital share transactions 23,468,679 6,634,238
------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------------------------------
Total increase in net assets 28,118,464 8,095,623
Net assets at beginning of period 9,095,663 1,000,040
------------------------------------
Net assets at end of period $37,214,127 $9,095,663
------------------------------------
------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
29
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS (UNAUDITED)(CONCLUDED)
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
<TABLE>
<CAPTION>
Jundt Growth Fund
--------------------------------------
For the six months ended Year ended
6/30/99 (unaudited) 12/31/98
- -----------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS
- -----------------------------------------------------------------------------------------------------
Shares sold:
Class A shares 86,880 20,906
Class B shares 75,078 15,594
Class C shares 25,606 10,773
Class I shares 19,809 25,096
Shares issued for dividends reinvested:
Class A shares -- 6,923
Class B shares -- 5,343
Class C shares -- 2,253
Class I shares -- 655,156
Shares redeemed:
Class A shares (22,697) (13,115)
Class B shares (3,920) (2,753)
Class C shares (1,217) (2,969)
Class I shares (247,189) (1,076,518)
--------------------------------------
Net increase (decrease) in shares outstanding (67,650) (353,311)
--------------------------------------
--------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
See accompanying notes to financial statements. 30
<PAGE>
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Jundt U.S. Emerging Growth Fund Jundt Opportunity Fund
-----------------------------------------------------------------------------
For the six months ended Year ended For the six months ended Year ended
6/30/99 (unaudited) 12/31/98 6/30/99 (unaudited) 12/31/98
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS
- ------------------------------------------------------------------------------------------------------------------------------------
Shares sold:
Class A shares 791,296 387,148 875,193 541,117
Class B shares 478,178 353,188 526,520 353,809
Class C shares 534,425 162,620 510,546 138,215
Class I shares 21,732 22,537 14,089 696,667
Shares issued for dividends reinvested:
Class A shares -- 76,343 -- 52,317
Class B shares -- 96,751 -- 50,318
Class C shares -- 31,310 -- 15,704
Class I shares -- 52,302 -- 107,541
Shares redeemed:
Class A shares (269,056) (86,818) (202,737) (69,605)
Class B shares (56,970) (164,853) (75,635) (76,346)
Class C shares (88,391) (86,234) (13,402) (15,420)
Class I shares (118,191) (283,626) (35,595) (22,204)
-----------------------------------------------------------------------------
Net increase (decrease) in shares outstanding 1,293,023 560,668 1,598,979 1,772,113
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
<CAPTION>
Jundt Twenty-Five Fund
----------------------------------------
For the six months ended Year ended
6/30/99 (unaudited) 12/31/98
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
CAPITAL SHARE TRANSACTIONS
- ------------------------------------------------------------------------------------------------------
Shares sold:
Class A shares 520,503 205,005
Class B shares 347,736 134,446
Class C shares 274,012 38,184
Class I shares 296,150 75,548
Shares issued for dividends reinvested:
Class A shares -- 13,616
Class B shares -- 10,809
Class C shares -- 2,920
Class I shares -- 12,629
Shares redeemed:
Class A shares (55,300) (21,540)
Class B shares (1,342) (225)
Class C shares (9,334) (297)
Class I shares (2,587) (3,110)
----------------------------------------
Net increase (decrease) in shares outstanding 1,369,838 467,985
----------------------------------------
----------------------------------------
</TABLE>
- --------------------------------------------------------------------------------
31
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) June 30, 1999
- --------------------------------------------------------------------------------
1. ORGANIZATION
The Jundt Funds are registered under the Investment Company Act of 1940 (as
amended) (the "Act") as open-end management investment companies, each of which
has different investment objectives and their own investment portfolios and net
asset values. The Jundt Growth Fund, Inc. ("Growth Fund") commenced operations
on September 3, 1991, as a diversified, closed-end investment company and
converted to an open-end investment company immediately following the close of
business on December 28, 1995. Jundt U.S. Emerging Growth Fund ("U.S. Emerging
Growth Fund"), Jundt Opportunity Fund ("Opportunity Fund") and Jundt Twenty-Five
Fund ("Twenty-Five Fund") are Funds within Jundt Funds, Inc. (the "Company").
The Company accounts separately for the assets, liabilities and operations of
each Fund. U.S. Emerging Growth Fund, a diversified Fund of the Company,
commenced operations on January 2, 1996. Opportunity Fund, a non-diversified
Fund of the Company, commenced operations on December 26, 1996. Twenty-Five
Fund, a non-diversified Fund of the Company, commenced operations on December
31, 1997.
Growth Fund, U.S. Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund
(the "Funds") currently offer shares in four classes (Class A, Class B, Class C
and Class I). Prior to April 22, 1997, Class I shares of each Fund then in
existence were referred to as Class A shares, and the current Class A shares of
each such Fund were referred to as Class D shares. Shares of Class I of U.S.
Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund (which are not
subject to a front-end or deferred sales charge) are available for investment
only by certain individuals and entities associated with the Funds. Class A
shares of each Fund and Class I shares of Growth Fund (which are available only
to persons that may purchase the other Funds' Class I shares and to Growth Fund
shareholders at the time of the open-end conversion) are generally sold with a
front-end sales charge. Shares of Class B and Class C of each Fund may be
subject to a contingent deferred sales charge when redeemed.
All classes of shares have identical liquidation and other rights and the same
terms and conditions except that Class A, Class B and Class C shares bear
certain expenses related to the account maintenance of such shares and Class B
and Class C shares also bear certain expenses related to the distribution of
such shares. Shareholder servicing costs attributable to a particular class will
be allocated to such class. Each class has exclusive voting rights with respect
to matters relating to its account maintenance and distribution expenditures and
to certain other matters relating exclusively to such class; otherwise, all
classes of shares have the same voting rights.
Growth Fund is authorized to issue up to 10 billion shares, par value $0.01 per
share. The Company is authorized to issue up to 1 trillion shares, par value
$0.01 per share. Currently, 10 billion shares have been designated to U.S.
Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund.
The investment objective of each Fund is as follows:
- - Growth Fund--to provide long-term capital appreciation by investing primarily
in a diversified portfolio of equity securities of companies that are believed
by the Adviser to have significant potential for growth in revenue and earnings.
- - U.S. Emerging Growth Fund--to provide long-term capital appreciation by
investing primarily in a diversified portfolio of equity securities of emerging
growth companies that are believed by the Adviser to have significant potential
for growth in revenue and earnings.
- - Opportunity Fund--to provide capital appreciation by employing an aggressive
yet flexible investment program emphasizing investments in domestic companies
that are believed by the Adviser to have significant potential for capital
appreciation.
- - Twenty-Five Fund--to provide long-term capital appreciation by investing in a
core portfolio of approximately 20 to 30 issues of common stock.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed by the Funds are as follows:
32
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) June 30, 1999
- --------------------------------------------------------------------------------
INVESTMENT IN SECURITIES
Investment in securities traded on U.S. securities exchanges or included in a
national market system and open short sales transactions are valued at the last
quoted sales price as of the close of business on the date of valuation or,
lacking any sales, at the mean between the most recently quoted bid and asked
prices. Securities traded in the over-the-counter market are valued at the mean
between the most recently quoted bid and asked prices. Options and futures
contracts are valued at market value or fair value if no market exists, except
that open futures contracts sales are valued using the closing settlement price
or, in the absence of such a price, the most recently quoted asked price. Other
securities for which market quotations are not readily available are valued at
fair value in good faith by or under the direction of the Board of Directors.
Short-term securities with maturities of fewer than 60 days when acquired, or
which subsequently are within 60 days of maturity, are valued at amortized cost,
which approximates market value.
Security transactions are accounted for on the date the securities are purchased
or sold. Realized gains and losses are calculated on the identified cost basis.
Dividend income is recognized on the ex-dividend date. Interest income,
including level-yield amortization of discount, is accrued daily.
FEDERAL TAXES
The Funds intend to comply with the requirements of the Internal Revenue Code
applicable to regulated investment companies and also intend to distribute all
of their investment company taxable income to shareholders. Therefore, no income
tax provision is required. In addition, on a calendar year basis, the Funds will
make sufficient distributions of their net investment income and realized gains,
if any, to avoid the payment of any federal excise taxes.
Net investment income (loss) and net realized gains (losses) may differ for
financial statement and tax purposes primarily due to wash sales and net
operating losses. The character of distributions made during the period from net
investment income or net realized gains, if any, may differ from its ultimate
characterization for federal income tax purposes. Also, due to the timing of
dividend distributions, the period in which amounts are distributed may differ
from the year the income or realized gains (losses) were recorded by the Funds.
REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with member banks of the Federal
Reserve System or primary dealers in U.S. government securities. Under such
agreements, the bank or primary dealer agrees to repurchase the security (U.S.
government securities) at a mutually agreed upon time and price. The Funds take
possession of the underlying securities, mark to market such securities daily
and, if necessary, receive additional securities to ensure that the contract is
adequately collateralized.
DERIVATIVE FINANCIAL INSTRUMENTS AND OTHER INVESTMENT STRATEGIES
The Funds may engage in various portfolio strategies to hedge against changes in
net asset value or to attempt to realize a greater current return.
OPTIONS TRANSACTIONS: For hedging purposes, the Funds may purchase and sell put
and call options on its portfolio securities. Opportunity Fund and Twenty-Five
Fund may also use options for purposes of increasing investment return.
The risk associated with purchasing an option is that the Funds pay a premium
whether or not the option is exercised. Additionally, the Funds bear the risk of
loss of premium and change in market value should the counterparty not perform
under the contract. Put and call options purchased are accounted for in the same
manner as portfolio securities. The cost of securities acquired through the
exercise of call options is increased by the premiums paid. The proceeds from
securities sold through the exercise of put options are decreased by the premium
paid.
When the Funds write an option, the premium received by the Funds is recorded as
a liability and is subsequently adjusted to the current market value of the
option written. Premiums received from writing options which expire unexercised
are recorded by the Funds on the expiration date as realized gains from option
transactions. The difference between the premium received and the amount paid on
effecting a closing purchase transaction, including brokerage commissions, is
also treated as a realized gain, or if the premium is less than the amount paid
for the closing purchase transaction, as a realized loss. If a call option is
exercised, the premium is added to the proceeds from the sale of the underlying
security in determining whether the Funds have realized a gain or loss. If a put
option is exercised, the premium reduces the cost basis of the security
purchased by the
33
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) June 30, 1999
- --------------------------------------------------------------------------------
Funds. In writing an option, the Funds bear the market risk of an unfavorable
change in the price of the security underlying the written option. Exercise of
an option written by the Funds could result in the Funds selling or buying a
security at a price different from the current market price.
FINANCIAL FUTURES CONTRACTS: The Funds may purchase or sell financial futures
contracts for hedging purposes. Opportunity Fund and Twenty-Five Fund may also
use financial futures contracts for purposes of increasing investment return. A
futures contract is an agreement between two parties to buy or sell a security
for a set price on a future date. Upon entering into a contract, the Funds
deposit and maintain as collateral such initial margin as required by the
exchange on which the transaction is effected. Pursuant to the contract, the
Funds agree to receive from or pay to the broker an amount of cash equal to the
daily fluctuation in the value of the contract. Such receipts or payments are
known as variation margin and are recorded by the Funds as unrealized gains or
losses. When the contract is closed, the Funds record 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.
SHORT SALE TRANSACTIONS: Opportunity Fund and Twenty-Five Fund may engage in
short-selling which obligates the Fund to replace the security borrowed by
purchasing the security at current market value. The Fund will incur a loss if
the price of the security increases between the date of the short sale and the
date on which the Fund replaces the borrowed security. The Fund realizes a gain
if the price of the security declines between those dates. Until the Fund
replaces the borrowed security, it will maintain daily, a segregated account
with a broker and/or custodian, of cash and/or other liquid securities
sufficient to cover its short position. Securities sold short at June 30,
1999, and their related market values and proceeds, are set forth in the
Notes to Schedule of Investments.
DISTRIBUTIONS TO SHAREHOLDERS
Distributions are recorded as of the close of business on the ex-dividend date.
Such distributions are payable in cash or reinvested in additional shares of
each Fund.
EXPENSES
Expenses directly attributable to each Fund are charged to that Fund's
operations; expenses which are applicable to all Funds are allocated among the
Funds on a pro rata basis.
DEFERRED ORGANIZATION AND OFFERING COSTS
Organization costs were incurred in connection with the start-up and initial
registration of U.S. Emerging Growth Fund, Opportunity Fund and Twenty-Five
Fund. These costs are being amortized over 60 months on a straight-line basis
from the commencement of investment operations of such Fund. In the event any of
the initial shares are redeemed during the period that the Funds are amortizing
their organizational costs, the redemption proceeds payable will be reduced by
the unamortized organizational costs in the same ratio as the number of initial
shares being redeemed to the number of initial shares outstanding at the time of
redemption.
Offering costs were capitalized by the Funds and amortized over twelve months
commencing with operations.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts in the financial statements. Actual results could
differ from those estimates.
3. INVESTMENT SECURITY TRANSACTIONS
For the six months ended June 30, 1999, for Growth Fund, U.S. Emerging Growth
Fund, Opportunity Fund and Twenty-Five Fund, the cost of purchases and proceeds
from sales of securities, other than temporary investments in short-term
securities, were as follows:
<TABLE>
<CAPTION>
Cost of Proceeds
Purchases from Sales
- --------------------------------------------------------------------
<S> <C> <C>
Growth Fund $60,348,264 $63,421,844
U.S. Emerging
Growth Fund $31,886,342 $20,890,170
Opportunity Fund
Long-term investment transactions $77,567,241 $49,585,491
Short sale transactions $28,755,868 $27,952,654
Twenty-Five Fund $38,097,840 $21,623,166
- --------------------------------------------------------------------
</TABLE>
34
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED) June 30, 1999
- --------------------------------------------------------------------------------
4. INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS AND TRANSACTIONS WITH
AFFILIATES
The Funds have entered into investment advisory agreements with the Adviser. The
Adviser is responsible for the management of each Fund's portfolio and provides
the necessary personnel, facilities, equipment and certain other services
necessary to the operations of each Fund. For such services, each Fund pays a
monthly investment advisory fee calculated at the following annualized rates:
Growth Fund and U.S. Emerging Growth Fund--1% of each Fund's average daily net
assets; Opportunity Fund and Twenty-Five Fund--1.3% of each Fund's average daily
net assets. The Adviser has voluntarily agreed to pay certain expenses in U.S.
Emerging Growth Fund, Opportunity Fund and Twenty-Five Fund. Such voluntary
expense reimbursement may be discontinued or modified at the Adviser's sole
discretion.
Jundt Funds, Inc. entered into administration agreements for the period January
1, 1999, through June 30, 1999, with Princeton Administrators, L.P. (the
"Administrator") which provide the Administrator with a monthly administrative
fee equal to an annualized rate of 0.20% of each Fund's average daily net
assets, subject to an annual minimum fee of $40,000 for each Fund. The Growth
Fund's administration agreement provides the Administrator with a monthly
administrative fee equal to an annualized rate of 0.20% of the Fund's average
daily net assets, subject to an annual minimum fee of $125,000. For its fee, the
Administrator provides certain administrative, accounting, clerical and record
keeping services for each Fund.
The Funds have entered into distribution agreements with U.S. Growth
Investments, Inc. (the "Distributor"), an affiliate of the Adviser. The
Distributor serves as the principal underwriter of each Fund's shares. Pursuant
to the Distribution Plans adopted by each Fund in accordance with Rule 12b-1
under the Act, each Fund pays the Distributor ongoing account maintenance and
distribution fees. The fees are accrued daily and paid monthly at annual rates
based upon the average daily net assets of each Fund's shares as follows:
<TABLE>
<CAPTION>
Account
Maintenance Distribution
Fee Fee
- ----------------------------------------------------------
<S> <C> <C>
Class A 0.25% --
Class B 0.25% 0.75%
Class C 0.25% 0.75%
- ----------------------------------------------------------
</TABLE>
In addition to the investment management fee, the administrative fee and account
maintenance and distribution fees, each Fund is responsible for paying most
other operating expenses, including directors' fees and expenses; custodian
fees; registration fees; printing and shareholder reports; transfer agent fees
and expenses; legal, auditing and accounting services; insurance; and other
miscellaneous expenses.
Legal fees of $23,537 for the six months ended June 30, 1999,
for Growth Fund, $9,238 for U.S. Emerging Growth Fund, $16,441 for Opportunity
Fund and $6,385 for Twenty-Five Fund were incurred for a law firm of which the
secretary of each Fund is a partner. Certain officers and/or directors of each
Fund are officers and/or directors of the Adviser and/or the Distributor. The
Company and Growth Fund pay each director who is not an "affiliated person" as
defined in the Act a combined fee of $13,000 per year plus $1,300 for each
meeting attended.
35
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
- --------------------------------------------------------------------------------
5. FINANCIAL HIGHLIGHTS -- GROWTH FUND AND U.S. EMERGING GROWTH FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental and ratio information for each period indicated,
calculated based on average shares outstanding, are as follows. (For periods
prior to December 31, 1995, the Growth Fund operated as a closed-end investment
company.)
<TABLE>
<CAPTION>
Net Realized
Beginning and Dividends Distributions
Net Asset Net Unrealized from Net from Net
Value Per Investment Gain (Loss) on Investment Investment
Share Loss Investments Income Gains
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GROWTH FUND
Class A
Six months ended 6/30/99 (unaudited) $16.66 (0.09) 1.86 -- --
Year ended 12/31/98 $14.20 (0.24) 6.22 -- (3.52)
Year ended 12/31/97 $13.64 (0.23) 1.64 -- (0.85)
Year ended 12/31/96 $11.95 (0.26) 2.03 -- (0.08)
Class B
Six months ended 6/30/99 (unaudited) $16.23 (0.15) 1.82 -- --
Year ended 12/31/98 $13.99 (0.35) 6.11 -- (3.52)
Year ended 12/31/97 $13.56 (0.32) 1.60 -- (0.85)
Year ended 12/31/96 $11.95 (0.36) 2.05 -- (0.08)
Class C
Six months ended 6/30/99 (unaudited) $16.25 (0.15) 1.82 -- --
Year ended 12/31/98 $13.97 (0.35) 6.15 -- (3.52)
Year ended 12/31/97 $13.54 (0.30) 1.58 -- (0.85)
Year ended 12/31/96 $11.95 (0.36) 2.03 -- (0.08)
Class I
Six months ended 6/30/99 (unaudited) $16.83 (0.08) 1.91 -- --
Year ended 12/31/98 $14.28 (0.20) 6.27 -- (3.52)
Year ended 12/31/97 $13.69 (0.19) 1.63 -- (0.85)
Year ended 12/31/96 $11.95 (0.23) 2.05 -- (0.08)
Year ended 12/31/95 $14.95 (0.12) 2.71 -- (5.59)
Period from 7/1/94 to 12/31/94 $13.53 (0.07) 1.83 -- (0.34)*
Year ended 6/30/94 $15.10 (0.11) (0.57) -- (0.89)(3)
U.S. EMERGING GROWTH FUND
Class A
Six months ended 6/30/99 (unaudited) $14.96 (0.01) 0.02 -- --
Year ended 12/31/98 $13.09 (0.17) 5.02 -- (2.98)
Year ended 12/31/97 $12.42 (0.11) 4.09 -- (3.31)
Period from 1/2/96** to 12/31/96 $10.00 (0.14) 4.47 -- (1.91)
Class B
Six months ended 6/30/99 (unaudited) $14.62 (0.06) 0.01 -- --
Year ended 12/31/98 $12.90 (0.27) 4.92 -- (2.93)
Year ended 12/31/97 $12.37 (0.21) 4.05 -- (3.31)
Period from 1/2/96** to 12/31/96 $10.00 (0.24) 4.52 -- (1.91)
Class C
Six months ended 6/30/99 (unaudited) $14.63 (0.06) 0.00 -- --
Year ended 12/31/98 $12.88 (0.27) 4.94 -- (2.92)
Year ended 12/31/97 $12.36 (0.21) 4.04 -- (3.31)
Period from 1/2/96** to 12/31/96 $10.00 (0.24) 4.51 -- (1.91)
Class I
Six months ended 6/30/99 (unaudited) $15.22 0.00 0.02 -- --
Year ended 12/31/98 $13.25 (0.13) 5.10 -- (3.00)
Year ended 12/31/97 $12.51 (0.07) 4.12 -- (3.31)
Period from 1/2/96** to 12/31/96 $10.00 (0.11) 4.53 -- (1.91)
</TABLE>
*Tax return of capital.
**Commencement of operations.
(1) Total investment return is based on the change in net asset value of a share
during the period, assumes reinvestment of distributions and excludes the
effects of sales loads. Total investment returns prior to December 29, 1995,
reflect performance of the Growth Fund as a closed-end Fund
36
<PAGE>
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio to Average Net Assets
---------------------------------------------
Ending
Net Asset
Value Per Net Investment Net Gross
Share Gain (Loss) Expenses Expenses
- --------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
GROWTH FUND
Class A
Six months ended 6/30/99 (unaudited) $18.43 (1.09%)(2) 1.96%(2) 1.96%(2)
Year ended 12/31/98 $16.66 (1.45%) 2.14% 2.14%
Year ended 12/31/97 $14.20 (1.49%) 2.18% 2.18%
Year ended 12/31/96 $13.64 (1.81%) 2.13% 2.13%
Class B
Six months ended 6/30/99 (unaudited) $17.90 (1.84%)(2) 2.71%(2) 2.71%(2)
Year ended 12/31/98 $16.23 (2.18%) 2.89% 2.89%
Year ended 12/31/97 $13.99 (2.28%) 2.93% 2.93%
Year ended 12/31/96 $13.56 (2.53%) 2.88% 2.88%
Class C
Six months ended 6/30/99 (unaudited) $17.92 (1.83%)(2) 2.71%(2) 2.71%(2)
Year ended 12/31/98 $16.25 (2.15%) 2.89% 2.89%
Year ended 12/31/97 $13.97 (2.32%) 2.93% 2.93%
Year ended 12/31/96 $13.54 (2.49%) 2.88% 2.88%
Class I
Six months ended 6/30/99 (unaudited) $18.66 (0.86%)(2) 1.72%(2) 1.72%(2)
Year ended 12/31/98 $16.83 (1.23%) 1.89% 1.89%
Year ended 12/31/97 $14.28 (1.22%) 1.93% 1.93%
Year ended 12/31/96 $13.69 (1.56%) 1.88% 1.88%
Year ended 12/31/95 $11.95 (0.72%) 1.60% 1.60%
Period from 7/1/94 to 12/31/94 $14.95 (0.98%) 1.58%(2) 1.58%(2)
Year ended 6/30/94 $13.53 (0.63%) 1.55% 1.55%
U.S. EMERGING GROWTH FUND
Class A
Six months ended 6/30/99 (unaudited) $14.97 (0.23%)(2) 1.80%(2) 2.21%(2)
Year ended 12/31/98 $14.96 (1.16%) 1.80% 2.93%
Year ended 12/31/97 $13.09 (0.88%) 1.80% 3.35%
Period from 1/2/96** to 12/31/96 $12.42 (1.36%)(2) 1.80%(2) 3.83%
Class B
Six months ended 6/30/99 (unaudited) $14.57 (0.98%)(2) 2.55%(2) 2.96%(2)
Year ended 12/31/98 $14.62 (1.91%) 2.55% 3.68%
Year ended 12/31/97 $12.90 (1.63%) 2.55% 4.10%
Period from 1/2/96** to 12/31/96 $12.37 (2.15%) 2.55% 3.62%(2)
Class C
Six months ended 6/30/99 (unaudited) $14.57 (0.98%)(2) 2.55%(2) 2.96%(2)
Year ended 12/31/98 $14.63 (1.91%) 2.55% 3.68%
Year ended 12/31/97 $12.88 (1.63%) 2.55% 4.10%
Period from 1/2/96** to 12/31/96 $12.36 (2.13%) 2.55% 4.32%
Class I
Six months ended 6/30/99 (unaudited) $15.24 0.02%(2) 1.55%(2) 1.96%(2)
Year ended 12/31/98 $15.22 (0.91%) 1.55% 2.68%
Year ended 12/31/97 $13.25 (0.63%) 1.55% 3.10%
Period from 1/2/96** to 12/31/96 $12.51 (1.09%)(2) 1.55%(2) 3.44%(2)
<CAPTION>
Portfolio Net Assets at
Total Turnover End of Period
Return(1) Rate (000s Omitted)
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C>
GROWTH FUND
Class A
Six months ended 6/30/99 (unaudited) 10.62% 75% $ 2,239
Year ended 12/31/98 42.90% 78% $ 954
Year ended 12/31/97 10.67% 115% $ 604
Year ended 12/31/96 14.81% 57% $ 340
Class B
Six months ended 6/30/99 (unaudited) 10.29% 75% $ 1,841
Year ended 12/31/98 41.98% 78% $ 515
Year ended 12/31/97 9.77% 115% $ 189
Year ended 12/31/96 14.14% 57% $ 37
Class C
Six months ended 6/30/99 (unaudited) 10.28% 75% $ 720
Year ended 12/31/98 42.32% 78% $ 256
Year ended 12/31/97 9.82% 115% $ 80
Year ended 12/31/96 13.97% 57% $ 2
Class I
Six months ended 6/30/99 (unaudited) 10.87% 75% $ 94,117
Year ended 12/31/98 43.30% 78% $ 88,752
Year ended 12/31/97 10.85% 115% $ 80,964
Year ended 12/31/96 15.22% 57% $ 96,458
Year ended 12/31/95 17.81% 155% $140,642
Period from 7/1/94 to 12/31/94 13.06% 19% $223,317
Year ended 6/30/94 (4.53%) 70% $202,192
U.S. EMERGING GROWTH FUND
Class A
Six months ended 6/30/99 (unaudited) 0.07% 81% $ 15,874
Year ended 12/31/98 38.65% 197% $ 8,058
Year ended 12/31/97 33.54% 264% $ 2,117
Period from 1/2/96** to 12/31/96 43.40% 204% $ 1,275
Class B
Six months ended 6/30/99 (unaudited) (0.34%) 81% $ 14,567
Year ended 12/31/98 37.64% 197% $ 8,462
Year ended 12/31/97 32.55% 264% $ 3,786
Period from 1/2/96** to 12/31/96 42.90% 204% $ 1,709
Class C
Six months ended 6/30/99 (unaudited) (0.41%) 81% $ 9,788
Year ended 12/31/98 37.82% 197% $ 3,301
Year ended 12/31/97 32.50% 264% $ 1,519
Period from 1/2/96** to 12/31/96 42.82% 204% $ 1,766
Class I
Six months ended 6/30/99 (unaudited) 0.13% 81% $ 8,888
Year ended 12/31/98 39.06% 197% $ 10,344
Year ended 12/31/97 33.87% 264% $ 11,773
Period from 1/2/96** to 12/31/96 44.32% 204% $ 9,025
</TABLE>
(assuming dividend reinvestment pursuant to the Growth Fund's Dividend
Reinvestment Plan as then in effect); as an open-end Fund, the Growth Fund
incurs certain additional expenses as a result of the continuous offering and
redemption of its shares. Total investment returns for periods of less than one
full year are not annualized.
(2) Adjusted to an annual basis.
(3) Includes tax return of capital of $0.37 per share.
37
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)(CONTINUED)
- --------------------------------------------------------------------------------
5. FINANCIAL HIGHLIGHTS (CONCLUDED) -- OPPORTUNITY FUND AND TWENTY-FIVE FUND
Per share data for a share of capital stock outstanding throughout each period
and selected supplemental and ratio information for each period indicated,
calculated based on average shares outstanding, are as follows:
<TABLE>
<CAPTION>
Net Realized
Beginning and Dividends Distributions
Net Asset Net Unrealized from Net from Net
Value Per Investment Gain (Loss) on Investment Investment
Share Loss Investments Income Gains
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPPORTUNITY FUND
Class A
Six months ended 6/30/99 (unaudited) $15.84 (0.07) 1.80 -- --
Year ended 12/31/98 $11.03 (0.17) 6.81 -- (1.83)
Year ended 12/31/97 $ 9.87 (0.17) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $10.00 -- (0.13) -- --
Class B
Six months ended 6/30/99 (unaudited) $15.60 (0.13) 1.77 -- --
Year ended 12/31/98 $10.94 (0.27) 6.73 -- (1.80)
Year ended 12/31/97 $ 9.87 (0.26) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $10.00 -- (0.13) -- --
Class C
Six months ended 6/30/99 (unaudited) $15.56 (0.13) 1.77 -- --
Year ended 12/31/98 $10.93 (0.27) 6.71 -- (1.81)
Year ended 12/31/97 $ 9.87 (0.25) 4.10 -- (2.79)
Period from 12/26/96* to 12/31/96 $10.00 -- (0.13) -- --
Class I
Six months ended 6/30/99 (unaudited) $15.93 (0.05) 1.82 -- --
Year ended 12/31/98 $11.06 (0.14) 6.85 -- (1.84)
Year ended 12/31/97 $ 9.87 (0.14) 4.12 -- (2.79)
Period from 12/26/96* to 12/31/96 $10.00 -- (0.13) -- --
TWENTY-FIVE FUND
Class A
Six months ended 6/30/99 (unaudited) $16.06 (0.06) 3.28 -- --
Year ended 12/31/98 $10.00 (0.15) 7.63 (0.07) (1.35)
Class B
Six months ended 6/30/99 (unaudited) $15.89 (0.13) 3.26 -- --
Year ended 12/31/98 $10.00 (0.27) 7.57 (0.06) (1.35)
Class C
Six months ended 6/30/99 (unaudited) $15.96 (0.13) 3.30 -- --
Year ended 12/31/98 $10.00 (0.25) 7.58 (0.02) (1.35)
Class I
Six months ended 6/30/99 (unaudited) $16.07 (0.04) 3.30 -- --
Year ended 12/31/98 $10.00 (0.10) 7.61 (0.09) (1.35)
</TABLE>
*Commencement of operations.
(1) Total investment return is based on the change in net asset value of a share
during the period, assumes reinvestment of distributions and excludes the
effects of sales loads. Total investment returns for periods of less than one
full year are not annualized.
(2) Adjusted to an annual basis.
(3) For Opportunity Fund, excluding interest expense, net of reimbursement.
(4) For Opportunity Fund, excluding interest expense, before reimbursement.
(5) For Opportunity Fund, including interest expense, before reimbursement.
38
<PAGE>
- --------------------------------------------------------------------------------
June 30, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Ratio to Average Net Assets
-----------------------------------------------------------------
Ending
Net Asset Gross Expenses
Value Per Net Investment Net Gross Including
Share Loss Expenses(3) Expenses(4) Interest Expense(5)
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
OPPORTUNITY FUND
Class A
Six months ended 6/30/99 (unaudited) $17.57 (0.77%)(2) 2.14%(2) 2.43%(2) N/A
Year ended 12/31/98 $15.84 (1.28%) 2.14% 3.35% 3.45%
Year ended 12/31/97 $11.03 (1.71%) 2.14% 6.57% 6.85%
Period from 12/26/96* to 12/31/96 $ 9.87 (2.14%)(2) 2.14%(2) 4.23%(2) 4.23%(2)
Class B
Six months ended 6/30/99 (unaudited) $17.24 (1.52%)(2) 2.89%(2) 3.18%(2) N/A
Year ended 12/31/98 $15.60 (2.03%) 2.89% 4.10% 4.20%
Year ended 12/31/97 $10.94 (2.36%) 2.89% 7.32% 7.50%
Period from 12/26/96* to 12/31/96 $ 9.87 (2.98%)(2) 2.89%(2) 4.98%(2) 4.98%(2)
Class C
Six months ended 6/30/99 (unaudited) $17.20 (1.52%)(2) 2.89%(2) 3.18%(2) N/A
Year ended 12/31/98 $15.56 (2.06%) 2.89% 4.10% 4.20%
Year ended 12/31/97 $10.93 (2.49%) 2.89% 7.32% 7.63%
Period from 12/26/96* to 12/31/96 $ 9.87 (3.02%)(2) 2.89%(2)(3) 4.98%(2) 4.98%(2)
Class I
Six months ended 6/30/99 (unaudited) $17.70 (0.52%)(2) 1.89%(2) 2.18%(2) N/A
Year ended 12/31/98 $15.93 (1.04%) 1.89% 3.10% 3.20%
Year ended 12/31/97 $11.06 (1.56%) 1.89% 6.32% 6.70%
Period from 12/26/96* to 12/31/96 $ 9.87 (1.89%)(2) 1.89%(2) 3.98%(2) 3.98%(2)
TWENTY-FIVE FUND
Class A
Six months ended 6/30/99 (unaudited) $19.28 (0.72%)(2) 2.25%(2) 2.72%(2) N/A
Year ended 12/31/98 $16.06 (1.06%) 2.25% 9.37% N/A
Class B
Six months ended 6/30/99 (unaudited) $19.02 (1.47%)(2) 3.00%(2) 3.47%(2) N/A
Year ended 12/31/98 $15.89 (1.78%) 3.00% 10.12% N/A
Class C
Six months ended 6/30/99 (unaudited) $19.13 (1.47%)(2) 3.00%(2) 3.47%(2) N/A
Year ended 12/31/98 $15.96 (1.81%) 3.00% 10.12% N/A
Class I
Six months ended 6/30/99 (unaudited) $19.33 (0.47%)(2) 2.00%(2) 2.47%(2) N/A
Year ended 12/31/98 $16.07 (0.74%) 2.00% 9.12% N/A
<CAPTION>
Portfolio Net Assets at
Total Turnover End of Period
Return(1) Rate (000s Omitted)
- --------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPPORTUNITY FUND
Class A
Six months ended 6/30/99 (unaudited) 10.92% 113% $22,745
Year ended 12/31/98 60.83% 376% $ 9,852
Year ended 12/31/97 41.15% 298% $ 1,084
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 112
Class B
Six months ended 6/30/99 (unaudited) 10.51% 113% $17,047
Year ended 12/31/98 59.60% 376% $ 8,388
Year ended 12/31/97 40.25% 298% $ 2,298
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 1
Class C
Six months ended 6/30/99 (unaudited) 10.54% 113% $11,606
Year ended 12/31/98 59.53% 376% $ 2,764
Year ended 12/31/97 40.12% 298% $ 427
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 1
Class I
Six months ended 6/30/99 (unaudited) 11.11% 113% $19,822
Year ended 12/31/98 61.29% 376% $18,182
Year ended 12/31/97 41.45% 298% $ 3,973
Period from 12/26/96* to 12/31/96 (1.30%) 0% $ 286
TWENTY-FIVE FUND
Class A
Six months ended 6/30/99 (unaudited) 20.05% 129% $12,790
Year ended 12/31/98 75.21% 294% $ 3,181
Class B
Six months ended 6/30/99 (unaudited) 19.70% 129% $ 9,366
Year ended 12/31/98 73.37% 294% $ 2,321
Class C
Six months ended 6/30/99 (unaudited) 19.86% 129% $ 5,864
Year ended 12/31/98 73.69% 294% $ 667
Class I
Six months ended 6/30/99 (unaudited) 20.29% 129% $ 9,194
Year ended 12/31/98 75.43% 294% $ 2,926
</TABLE>
39
<PAGE>
INVESTMENT ADVISER
Jundt Associates, Inc.
1550 Utica Avenue South
Suite 950
Minneapolis, MN 55416
DISTRIBUTOR
U.S. Growth Investments, Inc.
1550 Utica Avenue South
Suite 935
Minneapolis, MN 55416
ADMINISTRATOR
Princeton Administrators, L.P.
P.O. Box 9095
Princeton, NJ08543-9095
TRANSFER AGENT
National Financial Data Services
P.O. Box 219168
Kansas City, MO 64121-9168
1-800-370-0612
CUSTODIAN
Norwest Bank Minnesota, N.A.
Sixth & Marquette
Minneapolis, MN 55479
INDEPENDENT AUDITORS
KPMG LLP
4200 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402
LEGAL COUNSEL
Faegre & Benson LLP
2200 Norwest Center
Minneapolis, MN 55402
FOR MORE INFORMATION CONCERNING EACH FUND (INCLUDING FEES, EXPENSES AND RISKS
ASSOCIATED WITH AN INVESTMENT IN EACH FUND), CONTACT THE FUND AT
1-800-370-0612 OR YOUR INVESTMENT PROFESSIONAL FOR THE FUND'S CURRENT
PROSPECTUS. PLEASE READ IT CAREFULLY BEFORE INVESTING. PAST PERFORMANCE SHOWN IN
THIS REPORT SHOULD NOT BE CONSIDERED A REPRESENTATION OF FUTURE PERFORMANCE.
INVESTMENT RETURN AND PRINCIPAL VALUE OF SHARES WILL FLUCTUATE SO THAT SHARES,
WHEN REDEEMED, MAY BE WORTH MORE OR LESS THAN THEIR ORIGINAL COST.
PERFORMANCE INFORMATION CONTAINED HEREIN RELATING TO JUNDT U.S. EMERGING GROWTH
FUND, JUNDT OPPORTUNITY FUND AND JUNDT TWENTY-FIVE FUND REFLECTS THE VOLUNTARY
PAYMENT OR REIMBURSEMENT BY JUNDT ASSOCIATES, INC., EACH FUND'S INVESTMENT
ADVISER, OF CERTAIN FEES AND EXPENSES.
THIS REPORT MUST BE ACCOMPANIED OR PRECEDED BY THE FUNDS' CURRENT PROSPECTUS.
GENERAL INFORMATION REGARDING EACH FUND'S PORTFOLIO, UPDATED MONTHLY, IS
AVAILABLE BY CALLING PRINCETON ADMINISTRATORS, L.P., AT 1-800-543-6217 OR
1-609-282-4600.
