As filed with the Securities and Exchange Commission on July 1, 1997
1933 Act Registration No. 333-14233
1940 Act Registration No. 811-7865
SECURITIES AND EXCHANGE COMMISSION
----------------------------------------------------------------------------
Washington, DC 20549
Form N-1A
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. ___ ___
Post-Effective Amendment No. 2 X
___
and/or
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 2 X
___
LIFEUSA FUNDS, INC.
(Exact Name of Registrant as Specified in Charter)
3700 First Bank Place, P.O. Box 357
Minneapolis, Minnesota 55440
(Address of Principal Executive Offices)(Zip Code)
(612) 376-2700
(Registrant's Telephone Number, including Area Code)
Christopher J. Smith Copy to:
Investment Advisers, Inc. Michael J. Radmer, Esq.
3700 First Bank Place Dorsey & Whitney
P.O. Box 357 220 South Sixth Street
Minneapolis, Minnesota 55440 Minneapolis, Minnesota 55402
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box)
X immediately upon filing pursuant to paragraph (b)
---
--- on (date) pursuant to paragraph (b) 60 days after filing
--- pursuant to paragraph (a)(1) on (date) pursuant to paragraph (a)(1)
--- 75 days after filing pursuant to paragraph (a)(2)
--- on (date) pursuant to paragraph (a)(2) of Rule 485
If appropriate, check the following box:
--- this post-effective amendment designates a new effective date for a
previously filed post-effective amendment
Registrant has registered an indefinite number of securities under the
Securities Act of 1933 pursuant to Rule 24f-2 under the Investment Company Act
of 1940, as amended. Rule 24f-2 Notices will be filed in December 1997.
<PAGE>
LIFEUSA FUNDS, INC.
FORM N-1A
CROSS-REFERENCE SHEET
<TABLE>
<CAPTION>
<S> <C> <C>
Item Number Caption Prospectus Caption
- ----------- ------- ------------------
1 Cover Page Cover Page of Prospectus
2 Synopsis Fund Expense Information
3 Condensed Financial Information Investment Performance
4 General Description of Registrant Investment Objectives and Policies;
Description of Common Stock; Additional
Information
5 Management of the Fund Fund Expense Information; Management;
Additional Information; Custodian,
Transfer Agent and Dividend Disbursing
Agent
5A Management's Discussion of Fund Performance Information is contained in the Fund's
Semi-Annual Report.
6 Capital Stock and Other Securities Dividends, Distributions and Tax Status;
Description of Common Stock; Additional
Information
7 Purchase of Securities Being Offered Computation of Net Asset Value and
Pricing; Distribution of Portfolio
Shares; Purchase of Shares; Right of
Accumulation; Systematic Investment Plan;
Group Systematic Investment Plan; Group
Purchases; Automatic Investment Plan;
Exchange Privilege; Retirement Plans;
Authorized Telephone Trading
8 Redemption of Repurchase Redemption of Shares; Systematic Cash
Withdrawal Plan; Exchange Privilege;
Authorized Telephone Trading
9 Pending Legal Proceedings Not Applicable
<PAGE>
Number Caption Statement of Additional Information
- ------ ------- -----------------------------------
10 Cover Page Cover Page of Statement of Additional
Information
11 Table of Contents Table of Contents
12 General Information and History Management
13 Investment Objectives and Policies Investment Objectives and Policies;
Investment Restrictions
14 Management of the Fund Management
15 Control Persons and Principal Holders of Management; Capital Stock
Securities
16 Investment Advisory and Other Services Management; Prior Agreements; Custodian,
Counsel and Auditors; Transfer Agent and
Dividend Disbursing Agent
17 Brokerage Allocation Portfolio Transactions and Allocation of
Brokerage
18 Capital Stock and Other Securities Capital Stock
19 Purchase, Redemption and Pricing of Net Asset Value and Public Offering Price
Securities Being Offered
20 Tax Status Tax Status
21 Underwriters Plan of Distribution
22 Calculation of Performance Data Investment Performance
23 Financial Statements Financial Statements
</TABLE>
<PAGE>
Registration Statement on Form N-1A
of
LifeUSA Funds, Inc.
(File No. 333-14233)
Part A
The Prospectus dated Feburary 3, 1997 of LifeUSA Funds, Inc. as amended on
May 30, 1997, is incorporated by reference to said Prospectus as filed with the
commission pursuant to Rule 497(c) on or about February 12, 1997.
<PAGE>
Registration Statement on Form N-1A
of
LifeUSA Funds, Inc.
(File No. 333-14233)
Part B
The Statement of Additional Information dated February 3, 1997 of LifeUSA
Funds, Inc. is incorporated by reference to said Statement of Additional
Information as filed with the commission pursuant to Rule 497(c) on or about
February 12, 1997.
<PAGE>
PART C
Item 24. Financial Statements and Exhibits
- ------------------------------------------
(a) Financial Statements
(b) Exhibits
(1) Articles of Incorporation (1)
(1A) Certificate of Designation (1)
(2) Bylaws (1)
(5) Investment Advisory and Administrative Services
Agreement (2)
(6A) Underwriting and Distribution Agreement (2)
(6B) Dealer Sales Agreement (2)
(10) Opinion and Consent of Counsel (2)
(11) Consent of Independent Auditors (2)
(13) Letter of Investment Intent (2)
(15) Plan of Distribution (2)
(1) Incorporated by reference to the Registrant's Registration
Statement on Form N-1A filed on October 16, 1996.
(2) Incorporated by reference to the Registrant's Registration
Statement on Form N-1A filed on January 24, 1997.
Item 25. Persons Controlled by or Under Common Control with Registrant.
- -----------------------------------------------------------------------
See the sections of the Prospectus entitled "Management" and "Description
of Common Stock" and the section of the Statement of Additional Information
entitled "Management," filed as part of this Registration Statement.
Item 26. Number of Holders Securities.
- --------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C>
Number of Record Holders
Portfolio Title of Class as of June 23, 1997
- --------- -------------- -----------------------
LifeUSA Funds, Inc. Common Stock (Series A) 15
Common Stock (Series B) 13
Common Stock (Series C) 9
Common Stock (Series D) 11
Common Stock (Series E) 1
Common Stock (Series F) 2
</TABLE>
Item 27. Indemnification.
- -------------------------
Incorporated by reference to the Registrant's Registration Statement on
Form N-1A filed on October 16, 1996.
<PAGE>
Item 28. Business and Other Connections of Investment Adviser.
- --------------------------------------------------------------
Information on the business of Investment Advisers, Inc. ("IAI") is
described in the Prospectus section "Management" and in Part B of this
Registration Statement in the section "Management."
<TABLE>
<CAPTION>
Name Title
---- -----
<S> <C>
Jeffrey R. Applebaum Senior Vice President
Scott Allen Bettin Senior Vice President
Archie Campbell Black, III Senior Vice President/Treasurer
Iain D. Cheyne Chairman/Director
Stephen C. Coleman Senior Vice President
Larry Ray Hill Executive Vice President
Richard A. Holway Senior Vice President
Irving Philip Knelman President/Chief Operating Officer/Director
Kevin McKendry Director
Timothy A. Palmer Senior Vice President
Peter Phillips Director
Noel Paul Rahn Chief Executive Officer/Director
James S. Sorenson Senior Vice President
R. David Spreng Senior Vice President
Christopher John Smith Senior Vice President/Secretary
</TABLE>
All of such persons have been affiliated with IAI for more than two years
except Messrs. Cheyne, McKendry and Phillips. Prior to being appointed to the
Board in 1996, Mr. Cheyne was General Manager of Corporate Banking of Lloyds
Bank plc, and currently is Managing Director, International Banking, Lloyds TSB
Group plc, St. George's House, 6-8 Eastcheap, London, England EC3M 1LL since
1972. Prior to being appointed to the Board in 1996, Mr. McKendry was and
remains Bank Counsel to Lloyds Bank Plc, P.O. Box 2008, One Seaport Plaza, 199
Water Street, New York, NY 10038, since 1979. Prior to being appointed to the
Board in 1996, Mr. Phillips was and remains Executive Vice President and General
Manager of Lloyds Bank Plc, P.O. Box 2008, One Seaport Plaza, 199 Water Street,
New York, NY 10038, since 1993.
Certain directors and officers of IAI are directors and/or officers of the
Registrant, as described in the section of the Statement of Additional
Information entitled "Management," filed as a part of this Registration
Statement.
The address of the officers and directors of IAI is that of IAI, which is
3700 First Bank Place, P. O. Box 357, Minneapolis, Minnesota 55440.
Certain of the officers and directors of IAI also serve as officers and
directors of IAI International Ltd. Both IAI and IAI International's ultimate
corporate parent is Lloyds TSB Group plc, a publicly-held financial services
organization based in London, England. The senior officers and directors of IAI
International and their titles are as follows:
<TABLE>
<CAPTION>
<S> <C>
Name Title
- ---- -----
Noel Paul Rahn Chairman of the Board of Directors
Roy C. Gillson Chief Investment Officer/Director
Iain D. Cheyne Director
Irving Philip Knelman Director
Hilary Fane Deputy Chief Investment Officer/Director
Feidhlim O'Broin Associate Director
</TABLE>
Certain of the officers and directors of IAI also serve as officers and
directors of IAI Trust Company, a wholly-owned subsidiary of IAI. The principal
officers and directors of IAI Trust Company and their titles are as follows:
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Name Title
- ---- -----
Archie C. Black Chairman of the Board/President//Treasurer
Christopher J. Smith Director/Vice President
Susan J. Haedt Vice President/Director
Darcy Kent Supervisor of Trust Services
Steven G. Lentz Secretary/Director
</TABLE>
Item 29. Principal Underwriters
- -------- ----------------------
(a) None
(b) LifeUSA Securities, Inc. is the Portfolio's principal
underwriter. Its offices and directors are as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
Name and Principal Positions and Offices Positions and Offices
Business Address with Underwriter with Registrant
---------------- ---------------- ---------------
Robert McDonald Director None
300 South Highway 169
Minneapolis, MN 55426
Mark Zesbaugh President, CEO, CFO, None
300 South Highway 169 Secretary, Treasurer
Minneapolis, MN 55426
Margery Hughes Director None
300 South Highway 169
Minneapolis, MN 55426
Philip Rosenbaum Financial Operations Officer None
300 South Highway 169
Minneapolis, MN 55426
Bardea Huppert Senior Vice President, COO None
300 South Highway 169
Minneapolis, MN 55426
</TABLE>
(c) None
Item 30. Location of Accounts and Records.
- -------- ---------------------------------
All accounts, books and records of Registrant, including books and records
of Registrant's investment portfolios, are maintained by IAI. IAI also acts as
Registrant's transfer agent and dividend disbursing agent, at 3700 First Bank
Place, Minneapolis, Minnesota 55402.
Item 31. Management Services.
- -----------------------------
Not applicable.
Item 32. Undertakings.
- ----------------------
(a) Not applicable.
(b) Registrant undertakes to furnish each person to whom a
prospectus is delivered a copy of its latest annual report
to shareholders, upon request and without charge.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, Registrant certifies that it meets all of the
requirements for effectiveness of its Post-Effective Amendment to its
Registration Statement pursuant to Rule 485(b) under the Securities Act of 1933
and has duly caused this Post-Effective Amendment to its Registration Statement
to be signed on its behalf by the undersigned, thereunto duly authorized, in the
City of Minneapolis, and State of Minnesota, on the 30th day of June, 1997.
LifeUSA FUNDS, INC.
(Registrant)
By /s/ Noel P. Rahn
Noel P. Rahn, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the dates indicated:
<TABLE>
<CAPTION>
<S> <C> <C>
/s/ Noel P. Rahn President (principal June 30, 1997
Noel P. Rahn executive officer) & Director
/s/ Archie C. Black III Treasurer (principal June 30, 1997
Archie C. Black III financial and accounting
officer)
Madeline Betsch (1) Director
W. William Hodgson (1) Director
George R. Long (1) Director
J. Peter Thompson (1) Director
Charles H. Withers (1) Director
/s/ William C. Joas June 30, 1997
William C. Joas
Attorney-in-Fact
</TABLE>
(1) Registrant's directors executing Powers of Attorney dated October 14, 1996.
<PAGE>
EXHIBIT INDEX
Exhibit No. Exhibit Description Sequential Page No.
- ----------- ------------------- -------------------
99 Financial Statements
EXHIBIT 99
FINANCIAL STATEMENTS
<PAGE>
<TABLE>
<CAPTION>
========================================================================================================================
S C H E D U L E S O F I N V E S T M E N T S
=========================================================================================================================
LifeUSA Funds, Inc.
April 30, 1997
(percentage figures indicate percentage of total net assets)
(unaudited)
LIFEUSA AGGRESSIVE GROWTH FUND
MUTUAL FUNDS - 100.1%
<S> <C> <C>
Market
Quantity Value (a)
- -------------------------------------------------------------------------------------------------------------------------
IAI Value Fund - 29.9% 632 $ 7,360
IAI Capital Appreciation Fund - 49.3% 891 12,126
IAI Regional Fund - 20.9% 223 5,149
------------
24,635
- --------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost: $26,336) (b) ...................................................................................... $ 24,635
- ---------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - (0.1%)
.......................................................................................................... $ (27)
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS
.......................................................................................................... $ 24,608
- --------------------------------------------------------------------------------------------------------------------------
LIFEUSA GROWTH FUND
MUTUAL FUNDS - 100.1%
Market
Quantity Value (a)
- ---------------------------------------------------------------------------------------------------------------------------
IAI Midcap Growth Fund - 48.2% 740 $ 11,928
IAI Growth Fund - 30.9% 754 7,627
IAI Growth and Income Fund - 21.0% 336 5,194
-----------
24,749
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost: $26,230) (b) ...................................................................................... $ 24,749
- ---------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - (0.1%)
.......................................................................................................... $ (24)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSETS
.......................................................................................................... $ 24,725
- ---------------------------------------------------------------------------------------------------------------------------
LIFEUSA GLOBAL FUND
MUTUAL FUNDS - 100.1%
Market
Quantity Value (a)
- ----------------------------------------------------------------------------------------------------------------------------
IAI Growth Fund - 28.8% 1,401 $ 14,167
IAI International Fund - 55.9% 2,228 27,431
IAI Developing Countries Fund -10.2% 464 5,002
IAI Latin America Fund -5.2% 209 2,568
------------
49,168
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost: $49,692) (b) ...................................................................................... $ 49,168
- ----------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - (0.1%)
.......................................................................................................... $ (49)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS
.......................................................................................................... $ 49,119
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
See Accompanying Notes to Schedules of Investments on page 3
1
<PAGE>
<TABLE>
<CAPTION>
===========================================================================================================================
S C H E D U L E S O F I N V E S T M E N T S
===========================================================================================================================
LifeUSA Funds, Inc.
April 30, 1997
(percentage figures indicate percentage of total net assets)
(unaudited)
LIFEUSA BALANCED FUND
MUTUAL FUNDS - 100.1%
<S> <C> <C>
Market
Quantity Value (a)
- -------------------------------------------------------------------------------------------------------------------------------
IAI Government Fund - 20.2% 734 $ 7,105
IAI Midcap Growth Fund - 4.6% 100 1,616
IAI Value Fund - 6.7% 202 2,354
IAI Growth Fund -4.9% 169 1,714
IAI Bond Fund - 30.2% 1,168 10,635
IAI International Fund -15.3% 435 5,363
IAI Developing Countries Fund - 3.1% 100 1,079
IAI Latin America Fund - 3.1% 90 1,107
IAI Regional Fund - 5.0% 75 1,744
IAI Growth and Income Fund - 7.0% 158 2,456
------------
35,173
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost: $35,610) (b) ............................................................................... $ 35,173
- -------------------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - (0.1%)
................................................................................................... $ (30)
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
.................................................................................................... $ 35,143
- -------------------------------------------------------------------------------------------------------------------------------
LIFEUSA CURRENT INCOME FUND
MUTUAL FUNDS - 100.1%
Market
Quantity Value (a)
- ---------------------------------------------------------------------------------------------------------------------
IAI Government Fund - 20.0% 379 $ 3,669
IAI Bond Fund - 70.0% 1,407 12,805
IAI Reserve Fund - 10.1% 187 1,843
------------
18,317
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost: $18,568) (b) .............................................................................. $ 18,317
- -----------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - (0.1%)
.................................................................................................. $ (21)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS
.................................................................................................. $ 18,296
- -----------------------------------------------------------------------------------------------------------------------
LIFEUSA PRINCIPAL PRESERVATION FUND
MUTUAL FUNDS - 100.1%
Market
Quantity Value (a)
- ---------------------------------------------------------------------------------------------------------------------
IAI Money Market Fund - 100.1% 20,978 $ 20,978
- ---------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS
(cost: $20,978) (b) ............................................................................... $ 20,978
- ---------------------------------------------------------------------------------------------------------------------
OTHER ASSETS AND LIABILITIES - (0.1%)
.................................................................................................. $ (15)
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS
................................................................................................... $ 20,963
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
See Accompanying Notes to Schedules of Investments on page 3
2
<PAGE>
<TABLE>
<CAPTION>
==============================================================================================================================
NOTES TO SCHEDULES OF INVESTMENTS
==============================================================================================================================
LifeUSA Funds,Inc.
April 30, 1997
(unaudited)
(a)
Market value of securities is determined as described in Note 1 to the financial
statements, under "Security Valuation".
(b)
At April 30, 1997, the cost of securities for federal income tax purposes
and the aggregate gross unrealized appreciation and depreciation based on
that cost were as follows:
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
LIFEUSA AGGRESSIVE LIFEUSA LIFEUSA
GROWTH FUND GROWTH FUND GLOBAL FUND
- -------------------------------------------------------------------------------------------------------------------------
Cost for federal income tax purposes $ 26,336 $ 26,230 $ 49,692
----------------------------------------------------------------------------
Gross unrealized appreciation $ - $ - $ 216
Gross unrealized depreciation (1,701) (1,481) (740)
- ----------------------------------------------------------------------------
Net unrealized depreciation $ (1,701) $ (1,481) $ (524)
-----------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
LIFEUSA LIFEUSA CURRENT LIFEUSA PRINCIPAL
BALANCED FUND INCOME FUND PRESERVATION FUND
- ------------------------------------------------------------------------------------------------------------------------------
Cost for federal income tax purposes $ 35,610 $ 18,568 $ 20,978
---------------------------------------------------------------------------------
Gross unrealized appreciation $ 109 $ - $ -
Gross unrealized depreciation (546) (251) -
----------------------------------------------------------------------------------
Net unrealized depreciation $ (437) $ (251) $ -
---------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
============================================================================================================================
STATEMENTS OF ASSETS AND LIABILITIES
============================================================================================================================
LifeUSA Funds, Inc.
April 30, 1997
(unaudited)
<S> <C> <C> <C>
LifeUSA LifeUSA LifeUSA
Aggressive Growth Fund Growth Fund Global Fund
- -----------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market
(Cost: $26,336; $26,230; and $49,692, respectively) $ 24,635 $ 24,749 $ 49,168
Organization costs 6,281 6,281 6,281
---------------------------------------------------------------
Total Assets 30,916 31,030 55,449
---------------------------------------------------------------
LIABILITIES
Accrued distribution fee 27 24 49
Other accrued expenses 6,281 6,281 6,281
---------------------------------------------------------------
Total liabilities 6,308 6,305 6,330
---------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 24,608 $ 4,725 $ 49,119
---------------------------------------------------------------
REPRESENTED BY:
Capital stock $ 27 $ 27 $ 49
Additional paid-in capital 26,308 26,207 49,643
Undistributed net investment income (loss) (26) (23) (49)
Accumulated net realized gains (losses) on investments - (5) -
Unrealized depreciation on investments (1,701) (1,481) (524)
---------------------------------------------------------------
Total - representing net assets applicable to outstanding
capital stock $ 24,608 $ 24,725 $ 49,119
---------------------------------------------------------------
Shares of common stock outstanding;
authorized 10 billion shares of $.01 par value
stock of each Portfolio 2,650 2,675 4,895
---------------------------------------------------------------
Net asset value per share of outstanding capital stock $ 9.29 $ 9.24 $ 10.03
---------------------------------------------------------------
</TABLE>
See Accompanying Notes to Financial Statements on page 12
4
<PAGE>
<TABLE>
<CAPTION>
===============================================================================================================================
STATEMENTS OF ASSETS AND LIABILITIES
===============================================================================================================================
LifeUSA Funds, Inc.
April 30, 1997
(unaudited)
<S> <C> <C> <C>
LifeUSA LifeUSA LifeUSA Principal
Balanced Fund Current Income Fund Preservation Fund
- -------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments in securities, at market
(Cost: $35,610; $18,568; and $20,978, respectively) $ 35,173 $ 18,317 $ 20,978
Cash in bank on demand deposit - - 86
Organization costs 6,281 6,281 6,281
---------------------------------------------------------------
Total Assets 41,454 24,598 27,345
---------------------------------------------------------------
LIABILITIES
Accrued distribution fee 30 21 24
Dividends payable ($0.0368 per share) - - 77
Other accrued expenses 6,281 6,281 6,281
---------------------------------------------------------------
Total liabilities 6,311 6,302 6,382
---------------------------------------------------------------
Net assets applicable to outstanding capital stock $ 35,143 $ 18,296 $ 20,963
---------------------------------------------------------------
REPRESENTED BY:
Capital stock $ 36 $ 18 $ 21
Additional paid-in capital 35,397 18,315 20,942
Undistributed net investment income 147 214 -
Accumulated net realized gains on investments - - -
Unrealized depreciation on investments (437) (251) -
---------------------------------------------------------------
Total - representing net assets applicable to
outstanding capital stock $ 35,143 $ 18,296 $ 20,963
---------------------------------------------------------------
Shares of common stock outstanding; authorized
10 billion shares of $.01 par value stock
of each Portfolio 3,553 1,833 2,096
---------------------------------------------------------------
Net asset value per share of outstanding capital stock $ 9.89 $ 9.98 $ 10.00
---------------------------------------------------------------
</TABLE>
See Accompanying Notes to Financial Statements on page 12
5
<PAGE>
<TABLE>
<CAPTION>
============================================================================================================================
STATEMENTS OF OPERATIONS
============================================================================================================================
LifeUSA Funds, Inc.
Period from February 3, 1997* to April 30, 1997
(unaudited)
<S> <C> <C> <C>
LifeUSA LifeUSA LifeUSA
Aggressive Growth Fund Growth Fund Global Fund
- --------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income:
Dividends $ - $ - $ -
---------------------------------------------------------
Total income - - -
---------------------------------------------------------
Expenses:
Distribution fees 40 35 73
Legal fees 413 413 413
Amortization of organization costs 256 256 256
Registration fees 3,345 3,345 3,345
---------------------------------------------------------
Total expenses 4,054 4,049 4,087
Less fees reimbursed or waived by Distributor (4,028) (4,026) (4,038)
---------------------------------------------------------
Net expenses 26 23 49
---------------------------------------------------------
Net investment income (loss) (26) (23) (49)
---------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
Net realized gains (lossses) on investments - (5) -
Net change in unrealized appreciation or depreciation on
investment securities (1,701) (1,481) (524)
---------------------------------------------------------
Net gain (loss) on investments (1,701) (1,486) (524)
---------------------------------------------------------
Net increase (decrease) in net assets resulting
from operations $ (1,727) $ (1,509) $ (573)
---------------------------------------------------------
</TABLE>
*Commencement of operations
See Accompanying Notes to Financial Statements on page 12
6
<PAGE>
<TABLE>
<CAPTION>
============================================================================================================================
STATEMENTS OF OPERATIONS
============================================================================================================================
LifeUSA Funds, Inc.
Period from February 3, 1997* to April 30, 1997
(unaudited)
<S> <C> <C> <C>
LifeUSA LifeUSA LifeUSA Principal
Balanced Fund Current Income Fund Preservation Fund
- --------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income:
Dividends $ 177 $ 235 $ 231
--------------------------------------------------------------
TOTAL INCOME 177 235 231
---------------------------------------------------------------
Expenses:
Distribution fees 45 32 35
Legal fees 413 413 413
Amortization of organization costs 256 256 256
Registration fees 3,345 3,345 3,345
-----------------------------------------------------------
TOTAL EXPENSES 4,059 4,046 4,049
Less fees reimbursed or waived by Distributor (4,029) (4,025) (4,025)
-----------------------------------------------------------
NET EXPENSES 30 21 24
-----------------------------------------------------------
NET INVESTMENT INCOME 147 214 207
-----------------------------------------------------------
NET REALIZED AND UNREALIZED GAINS (LOSSES)
Net realized gains on investments - - -
Net change in unrealized appreciation or depreciation on
investment securities (437) (251) -
-----------------------------------------------------------
NET GAIN (LOSS) ON INVESTMENTS (437) (251) -
------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS (290) $ (37) $ 207
------------------------------------------------------------
</TABLE>
*Commencement of Operations
See Accompanying Notes to Financial Statements on page 12
7
<PAGE>
<TABLE>
<CAPTION>
==================================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
==================================================================================================================================
LifeUSA Funds, Inc.
Period from February 3, 1997* to April 30, 1997
(unaudited)
<S> <C> <C> <C>
LifeUSA Aggressive LifeUSA LifeUSA
Growth Fund Growth Fund Global Fund
- --------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income (loss) $ (26) $ (23) $ (49)
Net realized gains (losses) - (5) -
Net change in unrealized appreciation or depreciation (1,701) (1,481) (524)
--------------------------------------------------------
Net increase (decrease) in net assets resulting from operations (1,727) (1,509) (573)
--------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income - - -
Net realized gains - - -
--------------------------------------------------------
Total distributions - - -
--------------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 3)
Net proceeds from shares sold 26,335 26,284 49,692
Net asset value of shares issued to shareholders
in reinvestment of distributions - - -
Cost of shares redeemed - (50) -
--------------------------------------------------------
Increase in net assets from capital share transactions 26,335 26,234 49,692
--------------------------------------------------------
Total increase in net assets 24,608 24,725 49,119
Net assets at beginning of period - - -
--------------------------------------------------------
Net assets at end of period $ 24,608 $ 24,725 $ 49,119
--------------------------------------------------------
Including undistributed net investment income (loss) of: $ (26) $ (23) $ (49)
--------------------------------------------------------
</TABLE>
*Commencement of operations
See Accompanying Notes to Financial Statements on page 12
8
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
STATEMENTS OF CHANGES IN NET ASSETS
====================================================================================================================================
LifeUSA Funds, Inc.
Period from February 3, 1997* to April 30, 1997
(unaudited)
<S> <C> <C> <C>
LifeUSA LifeUSA
LifeUSA Current Principal
Balanced Fund Income Fund Preservation Fund
- ----------------------------------------------------------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 147 $ 214 $ 207
Net realized gains - - -
Net change in unrealized appreciation or depreciation (437) (251) -
-----------------------------------------------------
Net increase (decrease) in net assets resulting from operations (290) (37) 207
-----------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income - - (207)
Net realized gains - - -
-----------------------------------------------------
Total distributions - - (207)
-----------------------------------------------------
CAPITAL SHARE TRANSACTIONS (NOTE 3)
Net proceeds from shares sold 35,433 18,333 20,833
Net asset value of shares issued for reinvestment
of distributions - - 130
Cost of shares redeemed - - -
-----------------------------------------------------
Increase in net assets from capital share transactions 35,433 18,333 20,963
-----------------------------------------------------
Total increase in net assets 35,143 18,296 20,963
Net assets at beginning of period - - -
-----------------------------------------------------
Net assets at end of period $ 35,143 $ 18,296 $ 20,963
------------------------------------------------------
Including undistributed net investment income of: $ 147 $ 214 $ -
------------------------------------------------------
</TABLE>
*Commencement of operations
See Accompanying Notes to Financial Statements on page 12
9
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
FINANCIAL HIGHLIGHTS
====================================================================================================================================
LifeUSA Funds, Inc.
Period from February 3, 1997**** to April 30, 1997
(unaudited)
Per share data for a share of capital stock outstanding throughout the period
and selected information for the period indicated is as follows:
<S> <C> <C> <C>
LifeUSA LifeUSA LifeUSA
Aggressive Growth Growth Fund Global Fund
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
Beginning of period $ 10.00 $ 10.00 $ 10.00
-------------------------------------------------------------------
OPERATIONS
Net investment income (loss) (0.01) (0.01) (0.01)
Net realized and unrealized gains (losses) (0.70) (0.75) 0.04
--------------------------------------------------------------------
Total from operations (0.71) (0.76) 0.03
--------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income - - -
Net realized gains - - -
--------------------------------------------------------------------
Total distributions - - -
--------------------------------------------------------------------
NET ASSET VALUE
End of period $ 9.29 $ 9.24 $ 10.03
--------------------------------------------------------------------
Total investment return* (7.10%) (7.60%) 0.30%
Net assets at end of period (000's omitted) $ 25 $ 25 $ 49
RATIOS:
Expenses to average daily net assets*** 0.50**% 0.50**% 0.50**%
Net investment income (loss) to average daily net assets*** (0.50**%) (0.50**%) (0.50**%)
Porfolio turnover rate 0.00% 0.20% 0.00%
</TABLE>
* Total investment return is based on the change in net asset
value of a share during the period and assumes reinvestment
of all distributions at net asset value.
** Annualized
*** The Funds' distributor voluntarily waived $4,028, $4,026 and $4,038,
respectively, in expenses for the period ended April 30, 1997.
If the Funds had been charged these expenses, the ratios of
expenses to average daily net assets would have been 77.01%,
86.34% and 41.78%, respectively, and the ratios of net investment
income to average daily net assets would have been (77.01%),
(86.34%) and (41.78%), respectively. These expenses will be
voluntarily waived through May 1, 1998.
**** Commencement of operations
<PAGE>
<TABLE>
<CAPTION>
====================================================================================================================================
FINANCIAL HIGHLIGHTS
====================================================================================================================================
LifeUSA Funds, Inc.
Period from February 3, 1997**** to April 30, 1997
(unaudited)
Per share data for a share of capital stock outstanding throughout the
period and selected information for the period indicated is as follows:
<S> <C> <C> <C>
LifeUSA LifeUSA Current LifeUSA Principal
Balanced Fund Income Fund Preservation Fund
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE
Beginning of period $ 10.00 $ 10.00 $ 10.00
--------------------------------------------------------------------
OPERATIONS
Net investment income 0.04 0.12 0.10
Net realized and unrealized gains (losses) (0.15) (0.14) -
--------------------------------------------------------------------
Total from operations (0.11) (0.02) 0.10
--------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income - - (0.10)
Net realized gains - - -
--------------------------------------------------------------------
Total distributions - - (0.10)
--------------------------------------------------------------------
NET ASSET VALUE
End of period $ 9.89 $ 9.98 $ 10.00
--------------------------------------------------------------------
Total investment return* (1.10%) (0.20%) 1.03%
Net assets at end of period (000's omitted) $ 35 $ 18 $ 21
RATIOS:
Expenses to average daily net assets*** 0.50**% 0.50**% 0.50**%
Net investment income to average daily net assets*** 2.45**% 5.03**% 4.39**%
Porfolio turnover rate 0.00% 0.00% 0.00%
</TABLE>
* Total investment return is based on the change in net asset value
of a share during the period and assumes reinvestment of all
distributions at net asset value.
** Annualized
*** The Funds' distributor voluntarily waived $4,029, $4,025 and
$4,025, respectively, in expenses for the period ended
April 30, 1997. If the Funds had been charged these expenses,
the ratios of expenses to average daily net assets would have
been 67.71%, 95.14% and 85.85%, respectively, and the ratios of
net investment income to average daily net assets would
have been (64.76%), (89.61%) and (80.96%), respectively.
These expenses will be voluntarily waived through May 1, 1998.
**** Commencement of operations
See Accompanying Notes to Financial Statements on page 12
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
LifeUSA Funds, Inc.
April 30, 1997
(unaudited)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
LifeUSA Funds, Inc. (the Company) was incorporated on April 26, 1996,
and is registered under the Investment Company Act of 1940 (as amended) as an
open-end management investment company consisting of the following six separate
diversified investment funds: LifeUSA Aggressive Growth Fund (Aggressive Growth
Fund), LifeUSA Growth Fund (Growth Fund), LifeUSA Global Fund (Global Fund),
LifeUSA Balanced Fund (Balanced Fund), LifeUSA Current Income Fund (Current
Income Fund) and LifeUSA Principal Preservation Fund (Principal Preservation
Fund) (collectively, the Funds). Each of the Funds was created as a separate
fund represented by a separate class of common stock of the Company and offer a
means of investing in shares of certain IAI Mutual Funds (the Underlying Funds)
within certain predetermined percentage ranges. The Company's articles of
incorporation permit the Board of Directors to create additional funds in the
future and each Fund is permitted to issue separate classes of stock. This
report covers only the Aggressive Growth Fund, Growth Fund, Global Fund,
Balanced Fund, Current Income Fund and Principal Preservation Fund, currently
the only funds of the Company.
Significant accounting policies followed by the Funds are summarized
below:
FUND VALUATION
The investments of the Funds consist primarily of mutual funds that are
valued daily at their respective net asset values in accordance with the 1940
Act.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on the trade date. Realized
gains and losses from security transactions are reported on an identified-cost
basis for both financial statement and federal income tax purposes. Dividend
income and distributions to shareholders are recorded on the ex-dividend date.
Interest income and expenses are recorded on an accrual basis.
FEDERAL TAXES
Since it is each Fund's policy to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to its shareholders, no provision for
income taxes is required. In order to avoid the payment of any federal excise
taxes, the Funds are required to distribute substantially all of their net
investment income and net realized gains on a calendar year basis.
ORGANIZATION COSTS
Organization costs are being amortized over sixty months on a
straight-line basis. In the event LifeUSA Securities, Inc. (Distributor) redeems
any or all of its shares representing initial capital in the Funds prior to the
date such costs are fully amortized, it will bear such portion of the
unamortized organization costs as the number of shares redeemed bears to the
initial purchase of shares.
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 of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the Statement of
Assets and Liabilities. Actual amounts could differ from those estimates.
12
<PAGE>
(2) FEES AND EXPENSES
The Company has entered into an investment advisory and administrative
services agreement with Investment Advisers, Inc. (Advisers) who is also the
adviser to the Underlying Funds. Pursuant to the agreement, Advisers provides
the Funds with investment advisory services and is responsible for the overall
management of the Funds' business affairs subject to the authority of the Board
of Directors. Because the Underlying Funds pay Advisers a management fee, no
compensation is paid to Advisers under the Agreement. The Agreement also
provides that each Fund shall pay the fees and expenses of outside legal
counsel, independent public accountants, and custodians as well as certain
expenses incurred in connection with the registration of Fund shares for sale to
the public, interest and, in certain circumstances, taxes and extraordinary
expenses.
The Funds have adopted a plan of distribution under Rule 12b-1 of the
Investment Company Act of 1940. Under such Plan, the Funds have entered into an
Underwriting and Distribution Agreement (the "Agreement") with LifeUSA
Securities, Inc. (the "Underwriter") Under the Agreement, the Funds pay the
Underwriter a fee for the servicing of shareholder accounts and the distribution
of Fund shares. The fee is computed monthly based on average daily net assets
for each Fund at an annual rate of 0.75% (0.50% payable as distribution fee and
0.25% as a shareholder servicing fee). Until May 1, 1998, the Underwriter has
voluntarily agreed to waive that portion of the fee in excess of 0.50% of each
Fund's average daily net assets.
(3) CAPITAL STOCK
The Funds each have authorized 10 billion shares of $.01 par value stock.
Transactions in shares of capital stock during the period ended April 30, 1997
were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
LifeUSA LifeUSA LifeUSA
Aggressive Growth Growth Global
Fund Fund Fund
------------------------------------------------------------------------------
Sold 2,650 2,680 4,895
Issued for reinvested distributions - - -
Redeemed - (5) -
------------------------------------------------------------------------------
Increase in shares outstanding 2,650 2,675 4,895
- ----------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------
LifeUSA LifeUSA LifeUSA
Balanced Current Income Principal Preservation
Fund Fund Fund
-------------------------------------------------------------------------------
Sold 3,553 1,833 2,083
Issued for reinvested distributions - - 13
Redeemed - - -
-------------------------------------------------------------------------------
Increase in shares outstanding 3,553 1,833 2,096
- --------------------------------------- -------------------------------------------------------------------------------
</TABLE>
(4) PURCHASES AND SALES OF SECURITIES
For the period ended April 30, 1997, purchases and sales proceeds of the
underlying Funds were as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Purchases Sales
- ----------------------------------------------------------------------------------------------------------------------
LifeUSA Aggressive Growth Fund $ 26,335 $ -
LifeUSA Growth Fund $ 26,284 $ 50
LifeUSA Global Fund $ 49,691 $ -
LifeUSA Balanced Fund $ 35,610 $ -
LifeUSA Current Income Fund $ 18,568 $ -
LifeUSA Principal Preservation Fund $ 20,978 $ -
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
13
