UNITED SERVICES FUNDS
U.S. TREASURY SECURITIES CASH FUND
U.S. GOVERNMENT SECURITIES SAVINGS FUND
P.O. BOX 781234
SAN ANTONIO, TEXAS 78278-1234
1-800-873-8637 (1-800-US-FUNDS)
(INFORMATION, SHAREHOLDER SERVICES AND REQUESTS)
PROSPECTUS
NOVEMBER 1, 1995
This prospectus presents information that a prospective investor should
know about the U.S. Treasury Securities Cash Fund and the U.S. Government
Securities Savings Fund, two no-load mutual funds (the "Fund(s)") of United
Services Funds (the "Trust"). Each Fund has a different investment objective and
is designed to meet different investment needs. Read and retain this prospectus
for future reference.
The Funds are money market funds that endeavor to maintain a constant per
share net asset value. SHARES OF THE TRUST ARE NOT INSURED, GUARANTEED,
SPONSORED, RECOMMENDED OR APPROVED BY THE UNITED STATES OR ANY AGENCY OR OFFICER
THEREOF; THERE IS NO ASSURANCE THAT THE FUNDS WILL BE ABLE TO MAINTAIN STABLE
NET ASSET VALUES OF $1.00 PER SHARE.
A Statement of Additional Information dated November 1, 1995 has been filed
with the Securities and Exchange Commission and is incorporated herein by
reference. The Statement is available free from United Services Funds upon
written request at the address set forth above or by calling 1-800-873-8637.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DIS-
APPROVED BY THE SECURITIES AND EXCHANGE COM-
MISSION OR ANY STATE SECURITIES COMMISSION NOR
HAS THE SECURITIES AND EXCHANGE COM-
MISSION OR ANY STATE SECURITIES COMMIS-
SION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
TABLE OF CONTENTS
PAGE
----
Summary of Fees and Expenses .......................... 2
Financial Highlights .................................. 4
Investment Objectives and
Considerations
U.S. Treasury Securities Cash
Fund .......................................... 7
U.S. Government Securities
Savings Fund .................................. 8
Additional Information ................................ 8
How to Purchase Shares ................................ 9
How to Exchange Shares ................................ 11
How to Redeem Shares .................................. 12
How Shares are Valued ................................. 18
Dividends and Taxes ................................... 18
The Trust ............................................. 19
Management of the Funds ............................... 20
Performance Information ............................... 23
SUMMARY OF FEES AND EXPENSES
The following summary, which is based on actual expenses and average net
assets for the U.S. Treasury Securities Cash Fund for the year ended June 30,
1995 and the Advisor's voluntary agreement to cap expenses at 0.40% for the U.S.
Government Securities Saving Fund until June 30, 1997, is provided to assist you
in understanding the various costs and expenses a shareholder in each respective
Fund could bear directly and indirectly.
U.S. U.S.
TREASURY GOVERNMENT
SECURITIES SECURITIES
CASH FUND SAVINGS FUND
--------- ------------
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load.............. None None
Redemption Fee.................. None None
Administrative Exchange Fee..... $ 5 $ 5
Account Closing Fee (does not
apply to exchanges).......... $ 10 $ 10
ANNUAL FUND OPERATING EXPENSES (AS A
PERCENTAGE OF AVERAGE NET
ASSETS)(1)
Management Fees (after reduction
or waiver)................... 0.50% 0.15%
Other Expenses.................. 0.32% 0.16%
Transfer Agency Fees............ 0.12% 0.07%
Accounting Services Fees........ 0.03% 0.02%
Total Fund Operating Expenses (after
reduction or waiver)............... 0.97% 0.40%(2)
2
Except for active ABC Investment Plan(R), UGMA/UTMA and retirement
accounts, if an account falls, for any reason other than market fluctuations,
below $1,000 at any time during a month, that account will be subject to a small
account charge of $5 for that month. See "Small Accounts" on page 16.
A shareholder who requests delivery of redemption proceeds by wire will be
subject to a $10 charge. International wires will be charged more.
HYPOTHETICAL EXAMPLE OF EFFECT ON FUND EXPENSES
You would pay the following expenses on a $1,000 investment, assuming 5%
annual return:
U.S. TREASURY U.S. GOVERNMENT
SECURITIES CASH SECURITIES SAVINGS
FUND FUND
--------------- ------------------
1 year............................... $ 20 $ 14
3 years.............................. 41 26
5 years.............................. 64 42
10 years............................. 129 90
Included in these estimates is the account closing fee of $10 for each
period. This is a flat charge which does not vary with the size of your
investment. Accordingly, for investments larger than $1,000, your total expenses
will be substantially lower in percentage terms than this illustration. The
examples should not be considered a representation of past or future expenses.
Actual expenses may be more or less than those shown.
- ------------------------------------------------------------------------------
(1) Annual Fund Operating Expenses are based on each Fund's historical
expenses. Management fees are paid to United Services Advisors, Inc. (the
"Advisor") for managing the Fund's investments and business affairs. The Fund
incurs other expenses maintaining shareholder records, furnishing shareholder
statements and reports, and for other services. Transfer agency and accounting
service fees are paid to United Shareholder Services, Inc. ("USSI" or "Transfer
Agent"), a wholly-owned subsidiary of the Advisor, and are not charged directly
to individual shareholder accounts. The Transfer Agent charges the Fund $23.00
per shareholder account per year. The account closing fee and small account
charge will be paid by the shareholder directly to the Transfer Agent which
will, in turn, reduce its charges to the Fund by a like amount. Please refer to
the section entitled "Management of the Funds" at page 20 for further
information.
(2) The Advisor guaranteed that the Total Fund Operating Expenses of the
U.S. Government Securities Savings Fund (as a percentage of net assets) will not
exceed 0.40% of net assets until June 30, 1997 or until such later date as the
Advisor determines. Based on actual operating expenses of the Fund for the year
ended June 30, 1995, Management Fees, Other Expenses, Transfer Agency Fees,
Accounting Services Fees and Total Fund Operating Expenses were 0.43%, 0.16%,
0.07%, 0.02%, and 0.68%, respectively, in the absence of the fee waiver and
reimbursement of expenses by the Advisor.
3
FINANCIAL HIGHLIGHTS
U.S. TREASURY SECURITIES CASH FUND
The following per share data and ratios for a share of beneficial interest
outstanding throughout each of the five years ended June 30, 1995 have been
audited by Price Waterhouse LLP, the Fund's Independent Accountants. The related
financial statements and the report of Independent Accountants are included in
the Funds" 1995 Annual Report to Shareholders and are incorporated by reference
into the Statement of Additional Information ("SAI"). In addition to the data
set forth below, further information about the performance of the Fund is
contained in the Annual Report to Shareholders and SAI which may be obtained
without charge.
Selected data for a capital share outstanding throughout each year is as
follows:
<PAGE>
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
---------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990 1989
--------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period........ $ 1.00 1.00 1.00 1.00 1.00 1.00 1.00
--------- --------- --------- --------- --------- --------- ---------
Net investment income(d).................. .04 .02 .02 .04 .06 .08 .08
Net realized and unrealized gain (loss) on
investments(e)........................... -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- ---------
Total from investment operations............ .04 .02 .02 .04 .06 .08 .08
--------- --------- --------- --------- --------- --------- ---------
Less dividends and distributions:
Dividends from net investment income...... (.04) (.02) (.02) (.04) (.06) (.08) (.08)
Distributions from net realized gains..... -- -- -- -- -- -- --
--------- --------- --------- --------- --------- --------- ---------
Total dividends and distributions........... (.04) (.02) (.02) (.04) (.06) (.08) (.08)
--------- --------- --------- --------- --------- --------- ---------
Net asset value, end of period.............. $ 1.00 1.00 1.00 1.00 1.00 1.00 1.00
--------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- ---------
Total Investment Return(g).................. 4.43% 2.38 2.46 4.33 6.69 7.91 7.94
Ratios/Supplemental Data:
Net assets, end of period (in thousands).... $ 190,373 164,708 142,888 150,192 155,849 162,988 170,960
Ratio of expenses to average net assets..... .97% .93 .99 .88 .73 .70 .70
Ratio of net income to average net assets... 4.32% 2.38 2.41 4.30 6.96 7.67 7.67
Portfolio turnover rate..................... -- -- -- -- -- -- --
1988 1987 1986
--------- --------- ---------
<S> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period........ 1.00 1.00 1.00
--------- --------- ---------
Net investment income(d).................. .06 .05 .06
Net realized and unrealized gain (loss) on
investments(e)........................... -- -- --
--------- --------- ---------
Total from investment operations............ .06 .05 .06
--------- --------- ---------
Less dividends and distributions:
Dividends from net investment income...... (.06) (.05) (.06)
Distributions from net realized gains..... -- -- --
--------- --------- ---------
Total dividends and distributions........... (.06) (.05) (.06)
--------- --------- ---------
Net asset value, end of period.............. 1.00 1.00 1.00
--------- --------- ---------
--------- --------- ---------
Total Investment Return(g).................. 6.07 4.74 6.24
Ratios/Supplemental Data:
Net assets, end of period (in thousands).... 158,883 104,356 73,387
Ratio of expenses to average net assets..... .68 1.12 1.05
Ratio of net income to average net assets... 5.85 4.89 6.08
Portfolio turnover rate..................... -- -- --
</TABLE>
(CONTINUED)
4
FINANCIAL HIGHLIGHTS
U.S. GOVERNMENT SECURITIES SAVINGS FUND
The following per share data and ratios for a share of beneficial interest
outstanding throughout each of the five years ended June 30, 1995 have been
audited by Price Waterhouse LLP, the Fund's Independent Accountants. The related
financial statements and the report of Independent Accountants are included in
the Funds" 1995 Annual Report to Shareholders and are incorporated by reference
into the Statement of Additional Information ("SAI"). In addition to the data
set forth below, further information about the performance of the Fund is
contained in the Annual Report to Shareholders and SAI which may be obtained
without charge.
Selected data for a capital share outstanding throughout each year is as
follows:
<TABLE>
<CAPTION>
YEAR ENDED JUNE 30,
--------------------------------------------------------------------------------------
1995 1994 1993 1992 1991 1990(B) 1989(B) 1988(B)
--------- --------- --------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... $ 1.00 1.00 1.00 1.00 1.01 1.03 1.01 1.02
--------- --------- --------- --------- --------- --------- --------- ---------
Net investment income(d)................ .05 .03 .04 .05 .08 .07 .08 .09
Net realized and unrealized gain (loss)
on investments(e)..................... (.01) -- -- -- .02 .01 .02 .00
--------- --------- --------- --------- --------- --------- --------- ---------
Total from investment operations.......... .04 .03 .04 .05 .06 .08 .10 .09
--------- --------- --------- --------- --------- --------- --------- ---------
Less dividends and distributions:
Dividends from net investment income.... (.05) (.03) (.04) (.05) (.07) (.08) (.08) (.09)
Distributions from net realized gains... -- -- -- -- -- -- -- (.01)
--------- --------- --------- --------- --------- --------- --------- ---------
Total dividends and distributions......... (.05) (.03) (.04) (.05) (.07) (.08) (.08) (.10)
--------- --------- --------- --------- --------- --------- --------- ---------
Capital contribution by manager(i)........ .01 -- -- -- -- -- -- --
Net asset value, end of period............ $ 1.00 1.00 1.00 1.00 1.00 1.01 1.03 1.01
--------- --------- --------- --------- --------- --------- --------- ---------
--------- --------- --------- --------- --------- --------- --------- ---------
Total Investment Return(g)................ 5.09 (i) 3.34 3.79 5.30 5.47 6.70 10.69 8.79
Ratios/Supplemental Data:
Net assets, end of period (in
thousands).............................. $ 529,372 610,229 445,418 117,092 22,291 4,992 6,507 6,753
Ratio of expenses to average net assets... .23 (h) .16 .19 -- .47 2.17 1.13 --
Ratio of net income to average net
assets.................................. 5.03 (h) 3.34 3.61 5.02 6.24 7.07 8.15 8.78
Portfolio turnover rate................... -- -- -- -- -- -- 81.59 90.31
PERIOD
1987(B) ENDED(A)
--------- ---------
<S> <C> <C>
Per Share Operating Performance:
Net asset value, beginning of period.... 1.07 1.08
--------- ---
Net investment income(d)................ .08 .01
Net realized and unrealized gain (loss)
on investments(e)..................... (.05) (.01)
--------- ---
Total from investment operations.......... .03 --
--------- ---
Less dividends and distributions:
Dividends from net investment income.... (.08) (.01)
Distributions from net realized gains... -- --
--------- ---
Total dividends and distributions......... (.08) (.01)
--------- ---
Capital contribution by manager(i)........ -- --
Net asset value, end of period............ 1.02 1.07
--------- ---
--------- ---
Total Investment Return(g)................ 3.20 0.42
Ratios/Supplemental Data:
Net assets, end of period (in
thousands).............................. 6,743 772
Ratio of expenses to average net assets... (.08) --(c)
Ratio of net income to average net
assets.................................. 8.24 6.50(c)
Portfolio turnover rate................... 106.68 --
(FOOTNOTES ON FOLLOWING PAGE)
</TABLE>
5
<PAGE>
(CONTINUED FROM PREVIOUS PAGE)
(a) For the period from April 1, 1986 (date of commencement of operations) to
June 30, 1986; (b) Adjusted to reflect a 9.2448 2-for-1 stock split as of
October 31, 1990. Prior to the split the Fund was not a constant $1.00 Fund; (c)
Annualized, the ratios are not necessarily indicative of twelve months of
operations; (d) Net of expense reimbursements; (e) Includes the effect of
capital share transactions throughout the year; (f) During the year ended June
30, 1995, the Advisor purchased directly from the Government Securities Savings
Fund $130,525,000 par amount of securities at the Fund's amortized cost of
$130,113,712 so that the Fund would continue to maintain a stable net asset
value of $1.00 per share. The market value of these securities at the time of
purchase was $124,738,432 plus accrued interest. For financial reporting
purposes, the $5,375,280 difference between amortized cost and market value was
recorded as a capital loss and a corresponding capital contribution by the
Manager. For tax purposes, these reimbursements were applied against the
realized losses for the year ended June 30, 1995. In accordance with Statement
of Position 93-2, Determination, Disclosure and Financial Statement Presentation
of Income, Capital Gains, and Return of Capital Distributions by Investment
Companies, such amounts have been reclassified from additional paid-in capital
to accumulated undistributed net realized loss from investments in the Statement
of Assets and Liabilities; (g) Total return does not reflect the effect of
account fees; (h) Expense ratio is net of expense reimbursements or fee waivers.
Had such reimbursements and fee waivers not been made, the expense ratio subject
to the most restrictive state limitation would have been 0.68% and the net
investment income ratio would have been 4.57%; (i) Total return includes the
effect of the voluntary capital contribution from the Advisor (see note (f)
above). Without this capital contribution, total return would have been
approximately 4.19%.
6
INVESTMENT OBJECTIVES AND CONSIDERATIONS
United Services Funds offers investors two money market funds, each of
which is designed to satisfy different needs. The U.S. Treasury Securities Cash
Fund invests exclusively in United States Treasury obligations and repurchase
agreements that are collateralized by such obligations. The Fund is designed for
investors who anticipate making frequent deposits and withdrawals from the Fund
and desire maximum safety of principal and liquidity. The U.S. Government
Securities Savings Fund invests exclusively in United States Treasury
obligations, obligations of agencies and instrumentalities of the United States
Government, the income from which is exempt from state income taxes, and
repurchase obligations which are collateralized by such obligations. The Fund is
designed to provide a higher yield than the U.S. Treasury Securities Cash Fund,
but with slightly less safety of principal and liquidity. Both Funds use their
best efforts to maintain a constant net asset value of $1.00 per share, although
there can be no assurance that either Fund will be able to do so on a continuing
basis.
U.S. TREASURY SECURITIES CASH FUND
The U.S. Treasury Securities Cash Fund's investment objective is to obtain
a high level of current income while maintaining the highest degree of safety
and liquidity. The U.S. Treasury Securities Cash Fund invests in United States
Treasury debt securities with 397 days or less remaining to maturity which are
protected by the "full faith and credit" of the United States Government and in
repurchase agreements that are collateralized with such obligations. The Fund
seeks to maintain a stable net asset value per share of $1.00 and a dollar
weighted average portfolio maturity of 90 days or less.
The Fund may invest all or any portion of its assets in repurchase
agreements with domestic broker-dealers, banks and other financial institutions,
provided the Fund's custodian always has possession of securities serving as
collateral or has evidence of book entry receipt of such securities. In a
repurchase agreement, the Fund purchases securities subject to the seller's
agreement to repurchase such securities at a specified time (normally one day)
and price. The repurchase price reflects an agreed-upon interest rate during the
time of investment. All repurchase agreements are collateralized by United
States Treasury securities whose market values equal or exceed 102% of the
principal amount of the repurchase obligation. If an institution enters an
insolvency proceeding, any delay in liquidation of securities serving as
collateral could cause the Fund some loss if the value of the securities were to
decline prior to liquidation. The Fund anticipates that any such delays would be
less than 10 days. To minimize the risk of loss, the Fund will enter into
repurchase agreements only with institutions and dealers which the Board of
Trustees considers creditworthy. The Fund
7
will not invest more than 10% of its total assets in repurchase agreements with
maturities in excess of seven days.
U.S. GOVERNMENT SECURITIES SAVINGS FUND
The U.S. Government Securities Savings Fund's objective is to provide the
highest yield consistent with safety of principal and maintenance of liquidity
that is obtainable by investing exclusively in short-term obligations of the
United States Government and its agencies and instrumentalities. The Fund may
invest in fixed-rate, floating-rate and adjustable-rate securities issued by the
United States Treasury and various United States Government agencies, including
the Federal Home Loan Banks, the Federal Farm Credit Banks and the Student Loan
Marketing Association. The Fund may also invest in repurchase agreements secured
by United States Treasury securities and cash if the Advisor believes that a
major disruption in the currency or money market may adversely affect the Fund's
assets.
The Fund seeks to maintain a stable net asset value per share of $1.00 and
a dollar weighted average portfolio maturity of 90 days or less. The Fund
invests exclusively in securities with remaining maturities of 397 days or less.
In determining maturity, an adjustable-rate security is ordinarily treated as
having a maturity equal to its next interest-rate adjustment date.
Under Federal law, the income derived from obligations issued by the United
States Government and certain of its agencies and instrumentalities is exempt
from state income taxes. All states that tax personal income permit mutual funds
to pass through this tax exemption to shareholders. To maximize the
tax-effective yield for shareholders under normal circumstances, the Fund will
invest only in obligations that qualify for the exemption from state taxation.
The Trustees may also seek to maximize yield by adopting procedures and
policies that reduce operational expenses of the Fund. For example, the Trustees
have imposed minimum investment requirements and limitations on checkwriting
privileges. In the future, the Trustees may also require shareholders to pay
fees in connection with certain transactions, such as exchanges and redemptions.
For these reasons, the Fund may not be an appropriate investment vehicle for
market traders or transaction oriented investors.
ADDITIONAL INFORMATION
LENDING OF PORTFOLIO SECURITIES
Each Fund may lend securities to broker-dealers or institutional investors
for their use in connection with short sales, arbitrages and other securities
transactions. A Fund will not lend portfolio securities unless the
8
loan is secured by collateral (consisting of any combination of cash and United
States Government securities) in an amount at least equal (on a daily
mark-to-market basis) to the current market value of the securities loaned. In
the event of a bankruptcy or breach of agreement by the borrower of the
securities, a Fund could experience delays and costs in recovering the
securities loaned. A Fund will not enter into securities lending agreements
unless its custodian bank/lending agent will fully indemnify the Fund against
loss due to borrower default. A Fund may not lend securities with an aggregate
market value of more than one-third of the Fund's total assets.
POLICY CHANGES
Neither Fund may change its investment objective, or its policy to use its
best efforts to maintain a constant net asset value of $1.00 per share, without
the affirmative vote of a majority of the Fund's outstanding voting securities.
HOW TO PURCHASE SHARES
The minimum initial investment is $1,000. The minimum subsequent investment
is $50. The minimum initial investment for persons enrolled in an ABC Investment
Plan(R) is $100 and the minimum subsequent investment pursuant to such a plan is
$30 per month per account. There is no minimum purchase for retirement plan
accounts administered by the Advisor or its agents, and a reduced $50 minimum on
initial purchases for custodial accounts for minors.
YOU MAY INVEST IN THE FOLLOWING WAYS:
BY MAIL
Send your application and check or money order, made payable to the
respective Fund, to P.O. Box 781234, San Antonio, Texas 78278-1234.
When making subsequent investments, enclose your check with the return
remittance portion of the confirmation of your previous investment or indicate
on your check or a separate piece of paper your name, address and account number
and mail to the address mentioned above. Do not use the remittance portion of
your confirmation statement for a different fund as it is pre-coded. This may
cause your investment to be invested into the wrong fund. If you wish to
purchase shares in more than one fund send a separate check or money order for
each fund. Third party checks will not be accepted; and the Trust reserves the
right to refuse to accept second party checks.
9
BY WIRE
You may make your initial or subsequent investments in United Services
Funds by wiring funds. To do so, call United Services Funds for a confirmation
number and wiring instructions.
BY ABC INVESTMENT PLAN(R)
Once your account is open, you may make investments automatically by
completing the ABC Investment Plan(R) (Automatically Building Capital Investment
Plan) form authorizing United Services Funds to draw on your bank account
regularly for as little as $30 a month beginning within thirty (30) days after
the account is opened. You should inquire at your bank whether it will honor
debits through the Automated Clearing House ("ACH") or, if necessary,
preauthorized checks. You may change the date or amount of your investment or
discontinue the Plan any time by letter to United Services Funds at least five
business days before the change is to become effective.
ADDITIONAL INFORMATION ABOUT PURCHASES
All purchases of shares are subject to acceptance by the Trust and are not
binding until accepted. United Services Funds reserves the right to reject any
application or investment. Orders received by the Trust's transfer agent or a
sub-agent before 4:00 p.m. Eastern time, Monday through Friday, exclusive of
business holidays. In the event that the NYSE and other financial markets close
earlier, as on the eve of a holiday, orders will become effective earlier in the
day at the close of trading on the NYSE.
If checks are returned unpaid due to nonsufficient funds, stop payment or
other reasons, the Trust will charge $20 and you will be responsible for any
loss incurred by the Trust with respect to cancelling the purchase.
To recover any such loss or charge, the Trust reserves the right, without
further notice, to redeem shares of any fund already owned by any purchaser
whose order is cancelled, for whichever reason, and such a purchaser may be
prohibited from placing further orders unless investments are accompanied by
full payment by wire or cashier's check.
United Services Funds charges no sales commissions or "loads" of any kind.
However, investors may purchase and sell shares through registered
broker-dealers who may charge fees for their services.
Investments paid for by checks drawn on foreign banks may be deferred until
such checks have cleared the normal collection process. In such instances, any
amounts charged to the Trust for collection procedures will be deducted from the
amount invested.
10
If the Trust incurs a charge for locating a shareholder without a current
address, such charge will be passed through to the shareholder.
TAX IDENTIFICATION NUMBER
Each Fund is required by Federal law to withhold and remit to the United
States Treasury a portion of the dividends, capital gain distributions and
proceeds of redemptions paid to any shareholder who fails to furnish the Fund
with a correct taxpayer identification number, who underreports dividend or
interest income or who fails to provide certification of tax identification
number. In order to avoid this withholding requirement, you must certify on your
application, or on a separate W-9 Form supplied by the Transfer Agent, that your
taxpayer identification number is correct and that you are not currently subject
to backup withholding or you are exempt from backup withholding. For
individuals, your taxpayer identification number is your social security number.
Instructions to exchange or transfer shares held in established accounts
will be refused until the certification has been provided. In addition, the
Funds assess a $50 administrative fee if the taxpayer identification number is
not provided by year end.
HOW TO EXCHANGE SHARES
You have the privilege of exchanging into any of the United Services Funds
or affiliated funds which are registered in your state. An exchange involves the
simultaneous redemption (sale) of shares of one fund and purchase of shares of
another fund at the respective closing net asset value and is a taxable
transaction.
BY TELEPHONE
You will automatically have the privilege to direct United Services Funds
to exchange your shares by calling toll free 1-800-US-FUNDS (1-800-873-8637). In
connection with such exchanges, neither the Fund nor the Transfer Agent will be
responsible for acting upon any instructions reasonably believed by them to be
genuine. Each Fund and/or its Transfer Agent will, however, employ reasonable
procedures to confirm that instructions communicated by telephone are genuine
(including requiring some form of personal identification, providing written
confirmation and tape recording conversations); and if either party does not
employ reasonable procedures, it may be liable for losses due to unauthorized or
fraudulent transactions.
11
BY MAIL
You may direct United Services Funds in writing to exchange your shares
between identically registered accounts. The request must be signed exactly as
the name appears on the registration. (Before writing, read "Additional
Information About Exchanges.")
ADDITIONAL INFORMATION ABOUT EXCHANGES
(1) There is a $5 charge, which is paid to United Shareholder Services,
Inc. ("USSI" or the "Transfer Agent"), for each exchange transaction out of any
fund account. Retirement accounts administered by the Advisor or its agents are
charged $5 for each exchange exceeding three per quarter. The exchange fee is
charged to cover administrative costs associated with handling these exchanges.
(2) Like any other redemption, the Fund reserves the right to hold exchange
proceeds for up to seven days. In such event, the purchase side of the exchange
transaction will also be delayed. You will be notified immediately if the Fund
is exercising said right.
(3) Shares may not be exchanged unless you have furnished United Services
Funds with your tax identification number, certified as prescribed by the
Internal Revenue Code and Regulations, and the exchange is to an account with
like registration and tax identification number. (See "Tax Identification
Number," page 11.)
(4) Exchanges out of United Services Funds" equity funds of shares held
less than 14 days are subject to a short-term trading fee described at page 16.
(5) The exchange privilege may be modified or terminated at any time. The
exchange fee and other terms of the privilege are subject to change.
HOW TO REDEEM SHARES
You may redeem any or all of your shares at will. Redemption requests
received in proper order by the Trust's transfer agent or a sub-agent before
4:00 p.m., Eastern time, Monday through Friday exclusive of business holidays,
will receive the share price next computed after receipt of the request.
BY MAIL
A written request for redemption must be in "proper order," which requires
delivery of the following to the Transfer Agent:
12
(1) a written request for redemption signed by each registered owner
exactly as the shares are registered, the account number and the number of
shares or the dollar amount to be redeemed;
(2) signature guarantees when required; and
(3) such additional documents as are customarily required to evidence the
authority of persons effecting redemptions on behalf of corporations, executors,
trustees and other fiduciaries. Redemptions will not become effective until all
documents in the form required have been received by the Transfer Agent. (Before
writing, read "Additional Information About Redemptions.")
BY TELEPHONE
Redemptions may be made by telephone, provided you have completed the
Telephone Redemption Authorization section of the purchase application. Upon
proper authority and instruction, redemptions will be wired (for a separate bank
wire charge) to the bank account identified on the account registration or, for
amounts of $15,000 or less, redemptions will be mailed to the address on the
account registration. In connection with telephone redemptions, neither the Fund
nor the Transfer Agent will be responsible for acting upon any instructions
reasonably believed by them to be genuine. Each Fund and/or its Transfer Agent
will, however, employ reasonable procedures to confirm that instructions
communicated by telephone are genuine (including requiring some form of personal
identification, providing written confirmation and tape recording
conversations); and if either party does not employ reasonable procedures, it
may be liable for losses due to unauthorized or fraudulent transactions.
Special arrangements may be made by institutional investors, or on behalf
of accounts established by brokers, advisers, banks or similar institutions, to
have redemption proceeds transferred by wire to pre-established accounts upon
telephone instructions. For further information call the Trust at
1-800-873-8637.
SIGNATURE GUARANTEE
Redemptions in excess of $15,000 currently require a signature guarantee. A
signature guarantee is required for all redemptions, regardless of the amount
involved, when proceeds are to be paid to someone other than the registered
owner of the shares to be redeemed or if proceeds are to be mailed to an address
other than the registered address of record. When a signature guarantee is
required, each signature must be guaranteed by: (a) a federally insured bank or
thrift institution; (b) a broker or dealer (general securities, municipal, or
government) or clearing agency registered with the U.S. Securities and Exchange
Commission that maintains net capital of at
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least $100,000; or (c) a national securities exchange or national securities
association. The guarantee must: (i) include the statement "Signature(s)
Guaranteed'; (ii) be signed in the name of the guarantor by an authorized
person, the person's printed name and position with guarantor; and (iii) include
a recital that the guarantor is federally insured, maintains the requisite net
capital or is a national securities exchange or association. Shareholders living
abroad may acknowledge their signatures before a U.S. Consular officer. Military
personnel may acknowledge their signatures before officers authorized to take
acknowledgments (e.g., legal officers and adjutants).
BY CHECKWRITING
You may redeem shares of a Fund by writing a draft ("check") against your
account balance. For U.S. Treasury Securities Cash Fund, there is no limit on
the number of checks you may write and checks may be written for any amount. For
U.S. Government Securities Savings Fund, there is no limit on the number of
checks you may write, but there is a minimum check amount of $500.
If you want to add checkwriting to an existing Fund account, contact USSI
by phone or mail for the appropriate form. New accounts may elect checkwriting
on the purchase application. You will receive a free initial supply of temporary
checks usually within 14 days after your account has been established and your
completed signature card is on file with the Fund. You may thereafter order
permanent checks for a nominal charge.
Checkwriting is not available for an ABC Investment PlanT account or a
retirement plan account administered by the Advisor or its agent. Further, the
checkwriting privilege is only available for those accounts that elect to have
their dividends reinvested.
Checks will clear through Bankers Trust Company - Delaware. When checks are
presented, USSI will redeem a sufficient number of shares from your account to
pay the check amount. Cancelled checks will not automatically be returned to
you; however, USSI will retain microfilmed copies of cancelled checks for your
emergency needs and will provide a copy upon written request. You may, however,
request that your checks be returned on a monthly basis for a fee of $5/month.
Further, you may request research services from USSI or the clearing bank for
which the Fund will charge your account fees based on the bank's current
schedule, currently $15/hour or $1 per draft, whichever is higher.
You will continue to receive dividends on all shares until your check is
presented for payment. You cannot use a check to close an account because when
the check is written, you will not know what the exact account balance will be
on the date the check clears.
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The Fund returns checks drawn on insufficient funds, funds not "matured" or
other irregularities and charges the account fees for such based on the clearing
bank's current schedule, currently $20. Purchases by check are not considered
"matured" until seven days after the purchase. Neither the Fund, nor USSI, nor
the clearing bank will be liable for any loss or expense associated with
returned checks.
You may request a stop payment on a check by providing the Fund with
authorization to do so. The Fund will use its best effort to execute stop
payment instructions but does not promise or guarantee that such efforts will be
effective. The Fund will charge your account fees for such based on the clearing
bank's current schedule, currently $20 for each stop payment instruction
received.
REDEMPTION PROCEEDS MAY BE SENT TO YOU:
BY MAIL
If your redemption check is mailed, it is usually mailed within 48 hours;
however, the Fund reserves the right to hold redemption proceeds for up to seven
days. If the shares to be redeemed were purchased by check, the redemption
proceeds will not be mailed until the purchase check has cleared. You may avoid
this requirement by investing by bank wire (Federal funds). Redemption checks
may be delayed if you have changed your address in the last 30 days. Please
notify the Fund promptly in writing, or by telephone, of any change of address.
BY WIRE
You may authorize the Fund to transmit redemption proceeds by wire provided
you have completed the banking information portion of the Telephone Redemption
Authorization. Proceeds from your redemption will usually be transmitted on the
first business day following the redemption. However, the Trust reserves the
right to hold redemptions for up to seven days. If the shares to be redeemed
were purchased by check the redemption proceeds will not be wired until the
purchase check has cleared, which may take up to seven days. There is a $10
charge to cover the wire, which is deducted from redemption proceeds.
International wire charges will be higher.
ADDITIONAL INFORMATION ABOUT REDEMPTIONS
A request to redeem shares in an IRA or similar retirement account must be
accompanied by an IRS Form W4-P and must state a reason for withdrawal as
specified by the IRS. Proceeds from the redemption of shares from a retirement
account may be subject to withholding tax.
15
The Trust has the authority to redeem existing accounts and to refuse a
potential account the privilege of having an account in the Trust if the Trust
reasonably determines that the failure to so redeem, or to so prohibit, would
have a material adverse consequence to the Trust and its shareholders. No
account closing fee or redemption fee will be charged to investors whose
accounts are closed under this provision.
SHORT-TERM TRADING FEE
A trader's fee of 10 basis points or 0.10% of the value of shares redeemed
or exchanged will be assessed to shareholders who redeem or exchange shares held
less than fourteen (14) calendar days. The trader's fee will be paid to the
Fund.
ACCOUNT CLOSING FEE
In order to reduce Fund expenses, an account closing fee of $10 will be
assessed to shareholders who redeem all shares in their Fund account and direct
that redemption proceeds be directed to them by mail or wire. The charge is
payable directly to the Fund's Transfer Agent which, in turn, will reduce its
charges to the Fund by an equal amount. The purpose of the charge is to allocate
to the redeeming shareholders a more equitable portion of the Transfer Agent's
fee, including the cost of tax reporting, which is based upon the number of
shareholders accounts. This will not be imposed on any account which is
involuntarily redeemed nor does it apply to exchanges between United Services
Funds.
SMALL ACCOUNTS
Fund accounts which fall, for any reason other than market fluctuations,
below $1,000 at any time during a month will be subject to a small account
charge of $5 which is deducted the next business day. If an account does not
have sufficient funds to cover the $5 monthly charge, the Trust reserves the
right without further notice to such shareholder to redeem shares of any other
Fund owned by the shareholder to pay such fee. The charge is payable directly to
the Fund's Transfer Agent which, in turn, will reduce its charges to the Fund by
an equal amount. The purpose of the charge is to allocate the cost of
maintaining shareholder accounts more equally among shareholders.
Active ABC Investment Plan(R), UGMA/UTMA, and retirement plan accounts
administered by the Advisor or its agents or its affiliates will not be subject
to the small account charge.
In order to reduce expenses of the Fund, the Trust may redeem all of the
shares in any shareholder account, other than an active ABC Investment PlanT,
UGMA/UTMA and retirement plan account, if, for a period of more
16
than three months, the account has a net value of $500 or less and the reduction
in value is not due to market fluctuations. If the Fund elects to close such
accounts, it will notify shareholders whose accounts are below the minimum of
its intention to do so, and will provide those shareholders with an opportunity
to increase their accounts by investing a sufficient amount to bring their
accounts up to the minimum amount within ninety (90) days of the notice. No
account closing fee will be charged to investors whose accounts are closed under
this redemption provision.
CONFIRMATION STATEMENTS
Shareholders normally will receive a confirmation statement after each
transaction showing the activity in the account. However, when account activity
is produced solely from checkwriting and/or from dividend reinvestment,
confirmation statements will be mailed only on a monthly basis.
OTHER SERVICES
The Trust has available a number of plans and services to meet the special
needs of certain investors. Plans available include:
(1) payroll deduction plans, including military allotments;
(2) custodial accounts for minors;
(3) a flexible, systematic withdrawal plan; and
(4) various retirement plans such as IRA, SEP/IRA, 403(b)(7), 401(k) and
employer-adopted defined contribution plans.
Application forms and brochures describing these plans and services can be
obtained from the Transfer Agent by calling 1-800-US-FUNDS (1-800-873-8637).
There is an annual charge for each retirement plan fund account with
respect to which Security Trust & Financial Company ("ST&FC"), a wholly-owned
subsidiary of the Advisor, acts as custodian (for example, $10 for IRAs and $15
for SEP/IRAs 403(b)(7)s, profit sharing and other such accounts). If this
administrative charge is not paid separately prior to the last business day of a
calendar year or prior to a total redemption, it will be deducted from the
shareholder's account.
SHAREHOLDER SERVICES
United Shareholder Services, Inc., a wholly-owned subsidiary of the
Advisor, acts as transfer and dividend paying agent for all fund accounts.
Simply write or call 1-800-US-FUNDS for prompt service on any questions about
your account.
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24 HOUR CURRENT INFORMATION
Shareholders can also access 24 hours a day current information on yields,
prices, latest dividends, account balances, deposits and redemptions for the
previous and current months. Just call 1-800-US-FUNDS and press the appropriate
codes into your touch-tone phone.
HOW SHARES ARE VALUED
Shares of each Fund are purchased or redeemed on a continuing basis without
a sales charge at their next determined net asset value per share. The net asset
value per share of each Fund is calculated separately by United Shareholder
Services, Inc. Net asset value per share is determined and orders become
effective as of 4:00 p.m. Eastern time, Monday through Friday, exclusive of
business holidays on which the NYSE is closed, by dividing the aggregate net
assets of each Fund by the total number of shares of that Fund outstanding. In
the event that the NYSE and other financial markets close earlier, as on the eve
of a holiday, the net asset value per share will be determined earlier in the
day at the close of trading on the NYSE.
The assets of each Fund are valued on the basis of amortized cost, which
involves valuing a portfolio instrument at its cost initially and, thereafter,
assuming a constant amortization to maturity of any discount or premium,
regardless of the impact of fluctuating interest rates on the market value of
the instrument. This valuation method results in a constant per share value of
$1.00 for each Fund.
DIVIDENDS AND TAXES
Each Fund intends to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). By
complying with the applicable provisions of the Code, a Fund will not be subject
to Federal income tax on its net investment income and capital gains net income
that are distributed to shareholders.
All of the net income of the U.S. Treasury Securities Cash Fund and the
U.S. Government Securities Savings Fund is declared and distributed as a daily
dividend. Net income may be reduced by losses, if any, realized upon the sale of
securities. Net income of each Fund will be computed, and dividends declared, as
of 4:00 p.m. Eastern time on each business day. Investments in each Fund made
prior to 4:00 p.m. Eastern time will receive dividends the next business day,
and redemptions and exchanges effected prior to 4:00 p.m. Eastern time will
receive that day's dividend (other than redemptions under the checkwriting
privilege which receive dividends until the check is presented for payment).
Investors may request automatic redemption of dividend income at each month or
quarter end. Dividend checks returned to the Fund as being undeliverable and
dividend checks not cashed after 180 days will automatically be reinvested at
the price of the
18
Fund on the day returned or on or about the 181st day, and the distribution
option will be changed to "reinvest."
Dividends from taxable net investment income and distributions of net
short-term capital gains paid by each Fund are taxable to shareholders as
ordinary income, whether received in cash or reinvested in additional shares of
a Fund. None of the dividends paid by the Funds are expected to qualify for the
70 percent dividends received deduction available to corporations. Distributions
of net capital gains will be taxable to shareholders as long- term capital
gains, whether paid in cash or reinvested in additional shares, and regardless
of the length of time the investor has held his shares.
Under Federal law, the income derived from obligations issued by the United
States Government and certain of its agencies and instrumentalities is exempt
from state income taxes. All states that tax personal income permit mutual funds
to pass through this tax exemption to shareholders. The U.S. Government
Securities Savings Fund will invest only in obligations that the Advisor
reasonably determines qualify for this exemption from state taxation.
Each January, each Fund will report to its shareholders the Federal tax
status of dividends and distributions paid or declared by the Fund during the
preceding calendar year.
The foregoing discussion relates only to generally applicable Federal
income tax provisions in effect as of the date of this prospectus. Shareholders
should consult their tax advisers about the status of distributions from the
Funds in their own states and localities.
THE TRUST
United Services Funds (the "Trust") is an open-end management investment
company, consisting of numerous separate, diversified portfolios, each of which
has its own investment objectives and policies. The portfolios are designed to
serve a wide range of investor needs.
The Trust was formed July 31, 1984 as a "business trust" under the laws of
the Commonwealth of Massachusetts. It is a "series" company which is authorized
to issue series of shares without par value, each series representing interests
in a separate portfolio, or divide the shares of any series into classes. Shares
of numerous series have been authorized. The Board of Trustees of the Trust has
the power to create additional series, or divide existing series into two or
more classes, at any time, without a vote of shareholders of the Trust.
Under the Trust's First Amended and Restated Master Trust Agreement
("Master Trust Agreement"), no annual or regular meeting of shareholders is
required, although the Trustees may authorize special meetings from time to
time. Under the terms of the Master Trust Agreement, the Trustees will be a
self-perpetuating body and will continue their positions until they resign, die
or are removed by a written instrument signed by at
19
least two-thirds of the Trustees, by vote of shareholders holding not less than
two-thirds of the shares then outstanding of the Trust cast at any meeting
called for that purpose, or by a written declaration signed by shareholders
holding not less than two-thirds of the shares then outstanding.
On any matter submitted to shareholders, shares of each portfolio entitle
their holder to one vote per share, irrespective of the relative net asset
values of each portfolio's shares. On matters affecting an individual portfolio,
a separate vote of shareholders of the portfolio is required. Each portfolio's
shares are fully paid and non-assessable by the Trust, have no preemptive or
subscription rights, and are fully transferable, with no conversion rights.
MANAGEMENT OF THE FUNDS
TRUSTEES
The business affairs of each Fund are managed by the Trust's Board of
Trustees. The Trustees establish policies, as well as review and approve
contracts and their continuance. The Trustees also elect the officers and select
the Trustees to serve as executive and audit committee members.
THE INVESTMENT ADVISOR
United Services Advisors, Inc., 7900 Callaghan Road, San Antonio, Texas
78229, under an investment advisory agreement with the Trust dated October 26,
1989, furnishes investment advice and is responsible for overall management of
the Trust's business affairs. Frank E. Holmes is Chief Executive Officer and
Chairman of the Board of Directors of the Advisor, as well as President and a
Trustee of the Trust. Since October 1989, Mr. Holmes has owned more than 25% of
the voting stock of the Advisor and is its controlling person. The Advisor was
organized in 1968.
The Advisor provides to the Trust, and to each of the funds within the
Trust, management and investment advisory services. The Advisor furnishes an
investment program for each of the funds, determines, subject to the overall
supervision and review of the Board of Trustees of the Trust, what investments
should be purchased, sold and held, and makes changes on behalf of the Trust in
the investments of each of the funds.
The Advisor provides the Trust with office space, facilities and business
equipment and provides the services of executive and clerical personnel for
administering the affairs of the Trust. The Advisor pays the expense of printing
and mailing prospectuses and sales materials used for promotional purposes.
WITH RESPECT TO THE U.S. GOVERNMENT SECURITIES SAVINGS FUND AND
NOTWITHSTANDING THE FOLLOWING DESCRIPTION OF FEES AND OTHER EXPENSES, THE
ADVISOR HAS VOLUNTARILY GUARANTEED THAT TOTAL FUND OPERATING EXPENSES (AS A
PERCENTAGE OF AVERAGE NET ASSETS) OF THE U.S. GOVERNMENT SECURITIES
20
SAVINGS FUND WILL NOT EXCEED 0.40% ON AN ANNUALIZED BASIS UNTIL JUNE 30, 1997 OR
UNTIL SUCH LATER DATE AS THE ADVISOR DETERMINES.
The Advisory Agreement with the Trust provides for each Fund to pay the
Advisor an annual management fee equal to 0.50% of the first $250 million in
average net assets of the Fund and 0.375% of the average net assets of the Fund
in excess of $250 million. The fees paid to the Advisor for managing the U.S.
Treasury Securities Cash Fund and the U.S. Government Securities Savings Fund
for the fiscal period ended June 30, 1995, after such reimbursements, were 0.50%
and 0.00%, respectively, of average net assets.
The Advisor may, out of profits derived from its management fee, pay
certain financial institutions (which may include banks, securities dealers and
other industry professionals) a "servicing fee" for performing certain
administrative servicing functions for Fund shareholders to the extent these
institutions are allowed to do so by applicable statute, rule or regulation.
These fees will be paid periodically and will generally be based on a percentage
of the value of the institutions" client Fund shares.
The Transfer Agency Agreement with the Trust provides for each Fund to pay
USSI an annual fee of $23.00 per account ( 1/12 of $23.00 monthly), except for
accounts with monthly zero balances. In connection with obtaining/providing
administrative services to the beneficial owners of Trust shares through
broker-dealers, banks, trust companies and similar institutions which provide
such services and maintain an omnibus account with the Transfer Agent, each Fund
shall pay to the Transfer Agent a monthly fee equal to one-twelfth ( 1/12) of
12.5 basis points (.00125) of the value of the shares of the funds held in
accounts at the institutions, which payment shall not exceed $1.92 multiplied by
the average daily number of accounts holding Trust shares at the institution.
These fees cover the usual transfer agency functions. In addition, the Funds
bear certain other Transfer Agent expenses such as the costs of record retention
and postage, plus the telephone and line charges (including the toll-free 800
service) used by shareholders to contact the Transfer Agent. For the fiscal
period ended June 30, 1995, the U.S. Treasury Securities Cash Fund and the U.S.
Government Securities Savings Fund paid a total of $244,941 and $282,247,
respectively, for transfer agency, lockbox and printing services. Transfer Agent
fees and expenses, including reimbursed expenses, are reduced by the amount of
small account charges and account closing fees the Transfer Agent is paid.
USSI performs bookkeeping and accounting services, and determines the daily
net asset value for each of the Funds. Bookkeeping and accounting services are
provided to the Fund for an asset based fee of 0.03% of first $250 million
average net assets, 0.02% of next $250 million average net assets, 0.01% of
average net assets in excess of $500 million -- subject to an annual minimum fee
of $24,000 per Fund. USSI received fees of $53,677 and $131,803 for the U.S.
Treasury Securities Cash Fund and the
21
U.S. Government Securities Savings Fund, respectively, for the year ended June
30, 1995.
Additionally, the Advisor is reimbursed certain costs for in-house legal
services pertaining to each Fund, which reimbursement is subject to the
Advisor's assumption of expenses for the Fund.
The Trust pays all other expenses for its operations and activities. Each
of the Funds of the Trust pays its allocable portion of these expenses. The
expenses borne by the Trust include the charges and expenses of any shareholder
servicing agents, custodian fees, legal and auditors" expenses, brokerage
commissions for portfolio transactions, the advisory fee, extraordinary
expenses, expenses of shareholder and trustee meetings, expenses for preparing,
printing and mailing proxy statements, reports and other communications to
shareholders, and expenses of registering and qualifying shares for sale, among
others.
22
PERFORMANCE INFORMATION
From time to time, in advertisements or in reports to shareholders or
prospective shareholders, each Fund may compare its performance in terms of its
yield or its effective yield to that of other mutual funds with similar
investment objectives. Performance information and rankings as reported in
Changing Times, Business Week, Institutional Investor, the Wall Street Journal,
Mutual Fund Forecaster, No-Load Investor, Money Magazine, Forbes, Fortune and
Barron's magazine may also be used in comparing performance of each Fund.
Performance comparisons should not be considered as representative of the future
performance of any Fund.
The "yield" for each Fund refers to the income generated by an investment
in the Fund over a seven-day period (which period will be stated in the
advertisement). This yield is calculated by determining the net change,
exclusive of capital changes, in the value of a hypothetical pre-existing
account having a balance of one share at the beginning of the period,
subtracting a hypothetical charge reflecting deductions from shareholder
accounts, and dividing the difference by the value of the account at the
beginning of the base period to obtain the base return. This figure is then
"annualized." That is, the amount of income generated by the investment during
that week is assumed to be generated each week over a 52-week period and is
shown as a percentage of the investment. The "effective yield" is calculated
similarly but, when annualized, the income earned by an investment in the Fund
is assumed to be reinvested. The "effective yield" will be slightly higher than
the "yield" because of the compounding effect of this assumed reinvestment. For
the seven-day period ending June 30, 1995, the annualized yield of the U.S.
Treasury Securities Cash Fund was 4.98%, and its effective annualized yield was
5.10%. For the seven-day period ending June 30, 1995, the annualized yield of
the U.S. Government Savings Fund was 5.69%; and its effective annualized yield
was 5.85%.
The Fund may also utilize tax equivalent yields computed in the same
manner, with adjustment for a stated income tax rate.
The standard yield results do not take into account recurring and
nonrecurring charges for optional services which only certain shareholders elect
and which involve nominal fees such as the $5 fee for exchanges.
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UNITED SERVICES FUNDS
SHARES OF THE FUNDS ARE SOLD
AT NET ASSET VALUE WITHOUT SALES COMMISSIONS,
REDEMPTION FEES OR 12B-1 FEES
U.S. Treasury Securities
Cash Fund
U.S. Government Securities
Savings Fund
INVESTMENT ADVISOR
United Services Advisors, Inc.
7900 Callaghan Road
Mailing Address: P.O. Box 29467
San Antonio, Texas 78229
TRANSFER AGENT
United Shareholder Services, Inc.
P.O. Box 781234
San Antonio, Texas 78278-1234
CUSTODIAN
Bankers Trust Company
16 Wall Street
New York, NY 10005
LEGAL COUNSEL
Goodwin, Procter & Hoar
Exchange Place
Boston, MA 02109
INDEPENDENT ACCOUNTANTS
Price Waterhouse LLP
One Riverwalk Place, Ste. 900
San Antonio, Texas 78205
100% No Load
Be Sure to Retain This Prospectus;
It Contains Valuable Information
