[GRAPHIC: U.S. GLOBAL INVESTORS, INC. LOGO]
[GRAPHIC: FASCADE OF THE GLOBE ON A BLUE BACKGROUD WITH A GOLDEN ARROW]
U.S. GLOBAL INVESTORS FUNDS
SEMI-ANNUAL REPORT DECEMBER 31, 1997
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
SEMI-ANNUAL REPORT
DECEMBER 31, 1996 (Unaudited)
TABLE OF CONTENTS PAGE
LETTER TO SHAREHOLDERS
Frank E. Holmes, President ........................................ 2
PORTFOLIO OF INVESTMENTS
U.S. Gold Shares Fund ............................................ 15
U.S. Global Resources Fund ....................................... 17
U.S. World Gold Fund ............................................. 22
China Region Opportunity Fund .................................... 27
U.S. Treasury Securities Cash Fund ............................... 32
U.S. Government Securities Savings Fund .......................... 33
U.S. Tax Free Fund ............................................... 35
United Services Near-Term Tax Free Fund .......................... 40
U.S. All American Equity Fund .................................... 43
U.S. Income Fund ................................................. 48
U.S. Real Estate Fund ............................................ 52
United Services Intermediate Treasury Fund ....................... 55
Notes to Portfolio of Investments ......................................... 56
Statements of Assets and Liabilities ...................................... 62
Statements of Operations .................................................. 68
Statements of Changes in Net Assets for the Year Ended
June 30, 1996 .................................................... 74
Statements of Changes in Net Assets for the 6 Months Ended
December 31, 1996 ................................................ 80
Notes to Financial Statements ............................................. 86
Financial Statements ...................................................... 92
Shareholder Services
1-800-873-8637
1-210-308-1222
- ----------
Like other mutual funds, fund shares are not insured, guaranteed, or sponsored
by the United States government.
1
<PAGE>
DEAR SHAREHOLDER,
U.S. Global Investors is a unique, entrepreneurial and dynamic investment
company where the adventurous can discover a diverse collection of investment
opportunities from around the globe. These investments are managed by
sophisticated specialists who are inspired by performance and are passionate in
their pursuit of profits for our shareholders who entrust us with their money.
This was an exceptional year for U.S. Global Investors and for the
shareholders of our funds. Our U.S. All American Equity Fund, U.S. Global
Resources Fund, U.S. World Gold Fund, Bonnel Growth Fund,(1) China Region
Opportunity Fund, U.S. Government Securities Savings Fund and both tax-free
funds rewarded shareholders with superior performance in 1996.
We reached the milestone of guiding more funds than ever before to 4- and
5-star rankings from Morningstar.(2) And after rewarding shareholders with seven
consecutive years of high yields, our U.S. Government Securities Savings Fund
topped 1996 with yet another #1 ranking for 5-year performance, according to
Lipper Analytical Services.(3)
Our only frustration and disappointment has been the U.S. Gold Shares Fund.
The devaluation of the Rand by 30% last year took the wind out of the sails of
the Fund, which in Rand terms actually increased in value. Since we cannot
control the destiny of South Africa, we expanded the Fund's focus to include
more non-South African senior mining companies. The U.S. World Gold Fund
demonstrates our proven success in growth stock picking within the gold sector.
On the pages immediately following my letter you'll find a concise analysis
of the factors which affected fund performance over the past calendar year. Also
included are top fund holdings and fund diversification diagrams. Then you'll
find a more detailed report on fund performance and portfolio holdings.
We've made several improvements to this year's semi-annual report and we're
already planning additional enhancements for the fund's annual report which will
be available next August. I trust you'll find this document easier to read and
more informative. Even so, financial reports can be daunting to the novice and
seasoned investor alike. So if you have any questions about the facts and
figures contained within these pages, don't hesitate to call our Shareholder
Education & Service Center at 1-800-US-FUNDS.
In addition to giving you superior fund performance, one of our aspirations
for 1997 is to help you maximize your investment experience at U.S. Global
Investors. We want the pursuit of your financial goals to be enlightening and
entertaining as well as profitable. With this mission in mind, we've unveiled a
new and
2
<PAGE>
improved version of the Shareholder Report which you should have discovered in
your mailbox recently. I think you'll find it is not the typical communique from
a fund company. It's lively, educational, personal and interactive. To further
strengthen our communication with you, we've added a new telephone service
called Portfolio Direct. This gives you an opportunity to listen in on the
insights of our fund managers. Simply call 1-800-US FUNDS and select option 6
from the menu.
Over the years, I've had the privilege of meeting many of you at
shareholder meetings and investment conferences. I recall your kind words and
constructive criticisms. If you call us regularly, our investor representatives
probably know your voice and remember your name before you say it. Getting to
know our shareholders and helping them reach their goals is what we enjoy. If
you haven't already, I hope that you'll get to know U.S. Global. Not only our
funds and our performance, but our people.
[GRAPHIC: FULL-LENGTH PHOTO OF FRANK E. HOLMES]
Call us to discuss strategies for saving regularly, solutions for taking
the guesswork out of timing investment decisions, opportunities for reducing
risk and seeking growth. For those of you who are on-line, you may wish to send
us e-mail messages at [email protected] or visit our web site at
www.usfunds.com. When you get an invitation to a shareholder meeting or
investment conference, take us up on it. And if you should travel to San Antonio
for business or pleasure, plan to visit us. We'll be happy to arrange a tour of
our facility and introduce you to those people who grow, protect and service
your money.
Bullish wishes,
/s/ Frank Holmes
FRANK HOLMES
President & CEO
U.S. Global Investors Funds
P.S. The key to successful investing is regular investing. You may make
additional investments in amounts of $50 or more. Call 1-800-US-FUNDS to
purchase shares by telephone.
3
<PAGE>
U.S. GOLD SHARES FUND
[GRAPHIC: PIE CHART PLOTTED FROM THE FOLLOWING DATA]
Developing and Exploration Mines ...... 1.00%
Gold/Uranium Mines .................... 22.90%
Long-Life Gold Mines .................. 20.54%
Medium-Life Gold Mines ................ 10.45%
Mining Finance and Investment Companies 5.70%
North American Senior Mining Companies 30.88%
Other Natural Resources ............... 0.39%
Cash, equivalents ..................... 8.15%
TOP 10 HOLDINGS
Southvaal Holdings Ltd. .............. 11.1%
Barrick Gold Corp. .................... 9.7%
Beatrix Mines Ltd. .................... 7.1%
Western Areas Gold Mining Co. Ltd. .... 6.7%
Meridian Gold Corp. .................. 5.9%
The Pioneer Group Inc. ................ 5.7%
Driefontein Consolidated Ltd. ........ 5.1%
Ashanti Goldfields Co. Ltd. .......... 4.2%
Avgold Limited ....................... 4.2%
Freeport McMoran Copper & Gold, Inc. 4.1%
The past calendar year has disappointed us and shareholders alike as the U.S.
Gold Shares Fund has fallen in value. The depreciation of the Rand by 30% hurt
the South African stocks in the portfolio, even as we shifted assets into more
non-south African gold mining shares. We will continue to position the Fund in
world-class, senior gold companies which add to their reserves through
exploration and acquisition, increase their production and have strong
management teams to grow their businesses. Companies which discover and mine
more gold than competitors will succeed even when the price of the metal
declines, and will reap great rewards when bullion rallies.
- ----------
The chart and the table above demonstrate fund holdings by industry as a
percentage of total invested assets on 12/31/96. For a more complete analysis of
fund holdings, please refer to the Portfolio of Investments section.
4
<PAGE>
U.S. GLOBAL RESOURCES FUND
[GRAPHIC: PIE CHART PLOTTED FROM THE FOLLOWING DATA]
Chemical Companies ........... 9.66%
Electric Utilities ........... 2.48%
Metal Mining ................. 9.55%
Oil-Field Equipment & Services 3.60%
Oil & Gas .................... 57.74%
Paper Products ............... 3.45%
Precious Stones & Metals ..... 3.85%
Railroads .................... 2.18%
Miscellaneous ................ 4.09%
Cash, equivalents ............ 3.40%
TOP 10 HOLDINGS
Meridian Gold Corp. .. 3.8%
Ensco International .. 3.1%
Abacan Resources Corp. 2.9%
Woodside Petroleum ... 2.2%
Ensign Resources ..... 2.2%
Precision Drilling ... 2.2%
Force Energy, Inc. ... 2.1%
Boron Chemicals ...... 1.9%
British Petroleum Co. 1.9%
Texaco Inc. .......... 1.8%
The U.S. Global Resources Fund finished the year with spectacular investment
performance. In the beginning of the year, excellent stock picks in the
specialty chemical and gold sectors drove the Fund upwards, while in the second
half of 1996, oil and gas drilling and service companies in the portfolio
maintained the Fund's rapid growth rate. Our accurate stockpicking and our
selection of the right mix of energy stocks made possible the Fund's 34.11%
total returns for shareholders in 1996.(4)
- ----------
The chart and the table above demonstrate fund holdings by industry as a
percentage of total invested assets on 12/31/96. For a more complete analysis of
fund holdings, please refer to the Portfolio of Investments section.
5
<PAGE>
U.S.WORLD GOLD FUND
[GRAPHIC: PIE CHART PLOTTED FROM THE FOLLOWING DATA]
Major Gold Producing Companies .. 22.23%
Gold Producing Companies ........ 34.77%
Gold Development Companies ...... 6.67%
Gold Exploration Companies ...... 13.58%
Mining Finance .................. 17.16%
Mineral Exploration & Development 1.50%
Miscellaneous ................... 4.09%
TOP 10 HOLDINGS
Barrick Gold Corp. ........ 10.5%
Delta Gold NL ............. 7.6%
Greenstone Resources ...... 5.9%
The Pioneer Group Inc. .... 5.6%
Franco-Nevada Mining ...... 5.6%
Euro-Nevada Mining ........ 5.3%
Ashanti Goldfields Co. Ltd. 4.7%
Getchell Gold Corp. ....... 4.7%
Meridian Gold Corp. ....... 4.1%
Newmont Mining Corp. ...... 3.2%
An excellent gold discovery in the beginning of the year propelled the U.S.
World Gold Fund's portfolio of junior mining companies throughout 1996. A number
of smaller finds has filled the market with many juniors in control of gold
deposits, but without the expertise to mine the gold. Major gold producers, we
believe, will move to acquire such companies and develop these discoveries into
mines. Since the Fund owns several of the most important senior stocks and many
attractive juniors, we expect more great returns in 1997.
- ----------
The chart and the table above demonstrate fund holdings by industry as a
percentage of total invested assets on 12/31/96. For a more complete analysis of
fund holdings, please refer to the Portfolio of Investments section.
6
<PAGE>
CHINA REGION OPPORTUNITY FUND
[GRAPHIC: PIE CHART PLOTTED FROM THE FOLLOWING DATA]
Agriculture .................. 2.29%
Apparel/Textiles ............. 4.50%
Construction Firms & Materials 3.72%
Chemicals .................... 8.01%
Computers & Electronics ...... 6.14%
Finance ...................... 8.48%
Holding Companies ............ 5.63%
Automotive ................... 5.37%
Real Estate .................. 4.39%
Telecommunications ........... 2.10%
Transportation ............... 4.05%
Utilities .................... 4.13%
Miscellaneous ................ 16.65%
Cash, equivalents, etc ....... 24.53%
TOP 10 HOLDINGS
HSBC Holdings ............................ 3.5%
Citic Pacific Ltd. ....................... 3.0%
Shanghai Petrochemical Co. Ltd. .......... 2.7%
New World Development Co. Ltd. ........... 2.7%
China International Marine Containers Ltd. 2.6%
Hutchinson Whampoa, Ltd. ................. 2.5%
Qingling Motors Company Ltd. ............. 2.2%
Swire Pacific Ltd. ....................... 2.2%
Guoco Group Ltd. ......................... 2.0%
Shanghai Dazhong Taxi .................... 1.8%
We recognized that the September decline in the Chinese B share markets was only
a short-term technical dip. We took advantage of the extremely attractive prices
to buy a lot of quality shares. After a short period of volatility, the B share
markets performed strongly--the B share stocks we bought at bottom rose 40% on
average. In 1997 we will maintain our high weighting in Hong Kong and China,
whose markets led the region last year. We will buy more red chips because of
their ability to raise capital and the high quality of their underlying assets.
And we will make careful picks among new issues, since the IPO market will have
a very busy year in the China region.
- ----------
The chart and the table above demonstrate fund holdings by industry as a
percentage of total invested assets on 12/31/96. For a more complete analysis of
fund holdings, please refer to the Portfolio of Investments section.
7
<PAGE>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
& U.S. TREASURY SECURITIES CASH FUND
U.S. GOVERNMENT SECURITIES SAVINGS FUND
7-Day Effective Yield 5.20%
7-Day Simple Yield .. 5.08%
Days to Maturity .... 41 Days
U.S. TREASURY SECURITIES CASH FUND
7-Day Effective Yield 4.51%
7-Day Simple Yield .. 4.41%
Days to Maturity .... 40 Days
The U.S. Government Securities Savings Fund has again earned Lipper Analytical
Services' Number 1 ranking for 5-year performance as of the period ended
12/31/96.3 As shareholders have earned the highest long-term yield of any
government money market fund, they have also enjoyed the benefits of daily
dividend income and instant liquidity. One new benefit: the free automatic
bill-paying option can now be used for any dollar amount, not just those over
$500. (Checks must still be written for $500 or more, however.) The U.S.
Treasury Securities Cash Fund continues to offer all the benefits of free,
unlimited checkwriting privileges and a competitive yield.
- ----------
The tables above demonstrate fund holdings and yields on 12/31/96. For a more
complete analysis of fund holdings, please refer to the Portfolio of Investments
section.
8
<PAGE>
U.S. TAX FREE FUND
& UNITED SERVICES NEAR-TERM TAX FREE FUND
[GRAPHIC: PIE CHART PLOTTED FROM THE FOLLOWING DATA]
AAA/Aaa 42.20%
AA/Aa . 14.90%
A ..... 33.00%
BBB/Baa 3.00%
Cash .. 6.90%
U.S. TAX FREE FUND
[GRAPHIC: PIE CHART PLOTTED FROM THE FOLLOWING DATA]
AAA/Aaa 42.20%
AA/Aa . 14.90%
A ..... 33.00%
BBB/Baa 3.00%
Cash .. 6.90%
UNITED SERVICES NEAR-TERM TAX FREE FUND
[GRAPHIC: PIE CHART PLOTTED FROM THE FOLLOWING DATA]
AAA/Aaa 37.40%
AA/Aa . 25.90%
A ..... 30.90%
BBB/Baa 3.20%
Cash .. 2.60%
U.S. Global Investors' tax-free funds performed exceedingly well last year. Both
Funds have rankings for 1996 in the top quintile of municipal bond funds and
hold Morningstar's 4- and 5-star one-year rankings, respectively.2 We have
managed our Funds to top-notch performance while still providing low volatility
and risk as well as a high level of tax-exempt current income.
- ----------
The charts above demonstrate fund holdings by bond rating as a percentage of
total invested assets on 12/31/96. For a more complete analysis of fund
holdings, please refer to the Portfolio of Investments section.
9
<PAGE>
U.S. ALL AMERICAN EQUITY FUND
[GRAPHIC: PIE CHART PLOTTED FROM THE FOLLOWING DATA]
Banks .................... 3.34%
Food & Beverages ......... 6.89%
Computer Software/Hardware 13.78%
Health Care .............. 12.66%
Household products ....... 2.87%
Insurance ................ 3.70%
Oil Refining/Distribution 6.75%
Retail ................... 3.16%
Semiconductors ........... 3.97%
Telecommunications ....... 7.85%
Miscellaneous ............ 23.11%
Cash, equivalents ........ 11.93%
TOP 10 HOLDINGS
General Electric ....... 3.7%
The Coca-Cola Co. ...... 3.4%
Microsoft Corp. ........ 2.7%
Philip Morris Co. ...... 2.5%
IBM Corp. .............. 2.5%
Intel Corp. ............ 2.4%
Johnson & Johnson ...... 2.3%
Merck & Co., Inc. ...... 2.3%
AT&T ................... 1.9%
The Proctor & Gamble Co. 1.9%
In 1996 we tilted the Fund's portfolio toward large, stable growth companies
such as Coca-Cola, GE, Intel, IBM and Microsoft and underweighted our positions
in smaller companies, whose earnings were not as strong. The decision to invest
in large-caps paid off handsomely for shareholders as returns very closely
matched those of the S&P 500. Our holdings escaped many of the earnings
disappointments which hit Wall Street in the fourth quarter of 1996. In 1997 we
plan to invest in undervalued mid-caps and small-caps, with special emphasis on
stocks of companies which are niche players in their markets.
- ----------
The chart and the table above demonstrate fund holdings by industry as a
percentage of total invested assets on 12/31/96. For a more complete analysis of
fund holdings, please refer to the Portfolio of Investments section.
10
<PAGE>
U.S. INCOME FUND
[GRAPHIC: PIE CHART PLOTTED FROM THE FOLLOWING DATA]
Electric, Gas & Water Utilities 23.78%
Financial Services ............ 4.31%
Oil & Natural Gas ............. 19.66%
Petrochemical & Coal Products . 1.78%
Real Estate Investment Trusts . 16.60%
Services ...................... 2.63%
Telecommunications & Equipment 22.16%
Miscellaneous ................. 7.67%
Cash, equivalents ............. 1.42%
TOP 10 HOLDINGS
Williams Companies ............... 2.9%
Coastal Corporation .............. 2.5%
Evans Withycombe Residential, Inc. 2.2%
MCI Communications ............... 2.0%
Houston Industries ............... 1.9%
Atlantic Richfield ............... 1.8%
Security Capital Industrial Trust 1.8%
Kranzco Realty Trust ............. 1.8%
GPU, Inc. (General Public Utilitie 1.7%
CalEnergy, Inc. .................. 1.7%
Changes in the regulatory environment and increased competition among utility
companies have made many of them attractive takeover targets. We will focus on
such utilities in 1997 as we continue to diversify our assets into
dividend-paying stocks outside the utility sector. Prospects for the Fund must
combine above-market dividends with good prospects for growth, since we want to
achieve higher capital appreciation for shareholders as well as high, steady
current income.
- ----------
The chart and the table above demonstrate fund holdings by industry as a
percentage of total invested assets on 12/31/96. For a more complete analysis of
fund holdings, please refer to the Portfolio of Investments section.
11
<PAGE>
U.S. REAL ESTATE FUND
[GRAPHIC: PIE CHART PLOTTED FROM THE FOLLOWING DATA]
Apartments ............ 21.31%
Diversified ........... 7.55%
Healthcare ............ 2.10%
Hotel/Restaurant ...... 13.13%
Manufactured Home ..... 2.12%
Office Property ....... 18.32%
Regional Malls ........ 2.29%
Shopping Centers ...... 8.09%
Storage ............... 4.06%
Warehouse/Industrial .. 4.24%
Real Estate Development 2.81%
Miscellaneous ......... 5.16%
Cash .................. 8.83%
TOP 10 HOLDINGS
Public Storage, Inc. ............. 2.9%
CarrAmerica Realty Corp. ......... 2.7%
Patriot American Hospitality, Inc. 2.6%
Starwood Lodging Trust ........... 2.5%
Host Marriott Corp. .............. 2.4%
Beacon Properties Corp. .......... 2.4%
Reckson Associates Realty Corp. .. 2.4%
Bay Apartment Communities ........ 2.3%
Spieker Properties, Inc. ......... 2.3%
Simon DeBartolo Group, Inc. ...... 2.3%
The Fund achieved our goal of superior performance in 1996 with a broad
portfolio invested in high-quality real estate investment trusts. REITs have had
an outstanding run in the past year and continue to rise as they catch the
attention of more individual and institutional investors. The low growth, low
inflation economy has given REITs ideal conditions for expanding their
businesses and increasing cash flow. In the coming year, we will increase
holdings in our favorite stocks and will look outside of the REIT market for
select real estate opportunities.
- ----------
The chart and the table above demonstrate fund holdings by industry as a
percentage of total invested assets on 12/31/96. For a more complete analysis of
fund holdings, please refer to the Portfolio of Investments section.
12
<PAGE>
DISCLOSURE INFORMATION
In regards to all of U.S. Global Investors' funds: Past performance is no
guarantee of future results. Investing in emerging markets or in gold involves
special risks which are detailed in the prospectus. Investment principal and
returns will fluctuate. "U.S." stands for United Services.
1) For a free Fact Kit containing more complete information, including charges
and expenses, call 1-800-US-FUNDS. Please read the prospectus carefully
before investing.
2) Morningstar Rankings Star Ranking
Domestic Equity Funds 1 Yr 3 Yrs 5 Yrs 10 Yrs
U.S. Global Resources Fund 5 2 2 1
U.S. Real Estate Fund 5 2 1 N/A
U.S. All American Equity Fund 4 3 3 1
# of Funds in Category 2959 1826 1058 598
Municipal Bond Funds
United Services Near-Term Tax Free Fund 5 5 4 N/A
U.S. Tax Free Fund 4 4 3 3
# of Funds in Category 1739 1129 580 257
Morningstar rankings as of 12/31/96. Morningstar, a nationally recognized
mutual fund rating service, awards ratings which reflect historical
risk-adjusted performance. It awards 5 stars to funds in the top 10% of their
category, 4 stars to funds in the next 22.5%, 3 stars to the next 35%, 2
stars to the next 22.5% and 1 star to funds in the bottom 10%.
3) Like all other mutual funds, shares of the U.S. Government Securities Savings
Fund and the U.S. Treasury Securities Cash Fund are not backed by the U.S.
government or its agencies, though the securities they invest in are; nor are
they a deposit of nor endorsed by a bank; nor are they insured by the FDIC.
The Funds are managed to maintain a stable $1 per share value, though there
is no assurance that they will be able to do so. According to SEC guidelines,
capital gains or losses are excluded from yield calculations. Lipper
Analytical Services ranked the U.S. Government Securities Savings Fund #5 and
#1 for the 1- and 5-year periods ended 12/31/96 (out of 115 and 78 government
money market funds, respectively). The Fund's Advisor has guaranteed total
fund operating expenses (as a percentage of net assets) of the U.S.
Government Securities Savings Fund will not exceed 0.40% until 6/30/97, or
until such later date as the Advisor determines. The Fund's Advisor
subsidized certain Fund expenses, enhancing the yield.
4) U.S. Global Resources Fund performance as of 12/31/96: 8.75% for 5 years,
6.08% for 10 years.
13
<PAGE>
[GRAPHIC: U.S. GLOBAL INVESTORS, INC. LOGO]
14
<PAGE>
U.S. GOLD SHARES FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS 130.24%
- --------------------------------------------------------------------------------
DEVELOPING AND EXPLORATION MINES 1.42%
Free State Development & Investment
Corp. Ltd., ADR ................................ 704,000 $ 492,800
Randex Ltd., ADR ................................. 1,620,000 745,200
Randex Ltd. ...................................... 880,000 404,800
Sub Nigel Gold Mining Co. Ltd., ADR + ............ 1,354,600 67,730
---------
1,710,530
GOLD /URANIUM MINES 32.47%
Avgold Ltd. ...................................... 1,729,800 7,121,504
East Rand Gold and Uranium Co. Ltd., ADR ......... 1,612,781 2,741,728
Randfontein Estates Gold Mining Co.,
Witwatersrand, Ltd., ADR ....................... 1,048,397 5,425,453
Southvaal Holdings Ltd., ADR ..................... 657,550 18,904,562
Vaal Reefs Exploration and Mining Co. ............
Ltd., ADR ...................................... 800,000 4,950,000
----------
39,143,247
LONG-LIFE GOLD MINES 29.12%
Ashanti Goldfields Co. Ltd., ADR ................. 585,000 7,239,375
Driefontein Consolidated Ltd., ADR ............... 865,800 8,658,000
Elandsrand Gold Mining Company Ltd. ............. 750,000 3,687,225
Western Areas Gold Mining Co. Ltd., ADR .......... 837,827 11,467,756
Western Areas Gold Mining Co. Ltd. ............... 143,229 1,960,447
Western Deep Levels Ltd., ADR .................... 70,000 2,100,000
----------
35,112,803
MEDIUM-LIFE GOLD MINES 14.82%
Beatrix Mines Ltd., ADR .......................... 1,944,000 12,174,300
Evander Gold Mines ............................... 100,000 843,750
Evander Gold Mines, ADR .......................... 575,000 4,851,563
----------
17,869,613
MINING FINANCE AND INVESTMENT COMPANIES 8.08%
The Pioneer Group, Inc. .......................... 410,000 9,737,500
----------
NORTH AMERICAN SENIOR MINING COMPANIES 43.78%
Barrick Gold Corp. ............................... 575,000 16,531,250
Battle Mountain Gold Co. ......................... 750,000 5,156,250
Cambior Inc. ..................................... 200,000 2,925,000
Freeport-McMoRan Copper & Gold Inc. ............. 250,000 7,031,250
(Continued)
- --------------------------------------------------------------------------------
15
<PAGE>
U.S. GOLD SHARES FUND
-------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
NORTH AMERICAN SENIOR MINING COMPANIES (CONTINUED)
Meridian Gold .................................... 2,400,000 $10,069,200
Newmont Mining Corp. ............................. 150,000 6,712,500
Placer Dome Inc. ................................. 200,000 4,350,000
----------
52,775,450
OTHER NATURAL RESOURCES .55%
Ocean Diamond Mining Holdings Ltd. ............... 500,000 662,650
----------
TOTAL COMMON STOCKS (cost $184,635,745 ) ......... 157,011,793
----------
Principal
Amount
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 11.55%
- --------------------------------------------------------------------------------
Joint Repurchase Agreement, 6.25%,
12/31/96, due 1/2/97, repurchase price
$13,929,244, collateralized in a joint
repurchase account (cost $13,924,409) .......... $13,924,409 13,924,409
----------
TOTAL INVESTMENTS 141.79%
(cost $198,560,154) $ 170,936,202
=============
- --------------------------------------------------------------------------------
HOLDINGS BY COUNTRY
- --------------------------------------------------------------------------------
South Africa 51.1%
Canada 19.8%
United States 16.8%
Ghana 4.2%
Cash Equivalents - U.S. 8.1%
------
Total Investments 100.0%
======
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
16
<PAGE>
U.S. GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS 99.06%
- --------------------------------------------------------------------------------
CHEMICAL COMPANIES 9.91%
Acetex Corporation ............................... 30,000 $ 311,931*
Air Products and Chemicals, Inc. ................. 3,700 255,763
Boron Chemical International Ltd. ................ 300,000 569,130*
Cytec Industries, Inc. ........................... 13,000 528,125*
Dow Chemical Company ............................. 2,800 219,450
E.I. DuPont De Nemours & Company ................. 2,600 245,375
Imperial Chemical Industries plc, ADR ............ 4,000 208,000
Praxair, Inc. .................................... 7,000 322,875
Shanghai Petrochemical Company Ltd., ADR ......... 7,500 220,313
----------
2,880,962
ELECTRIC UTILITIES 2.54%
Entergy Corporation .............................. 7,400 205,350
Korea Electric Power Corporation, ADR ............ 15,000 307,500
Texas Utilities Company .......................... 5,500 224,125
----------
736,975
METAL MINING 9.79%
Adex Mining Corporation Warrants (RS) ............ 550,000 -0-*
Aluminum Company of America ...................... 2,500 159,375
America Mineral Fields, Inc. ..................... 50,000 149,580*
Bre-X Minerals Ltd. .............................. 20,000 316,672*
Freeport-McMoRan Cooper & Gold, Inc. ............. 10,000 298,750
Gitennes Exploration Inc. ........................ 40,000 195,548*
Meridian Gold, Inc. .............................. 270,000 1,132,785*
Minco Mining & Metals Corporation
Special Warrants (RS) .......................... 50,000 93,580*
QNI Limited ...................................... 110,000 221,001
Reunion Mining plc Warrants (RS) ................. 83,335 -0-*
Zimasco Consolidated Enterprises Ltd. (RS) ....... 40,000 277,200
----------
2,844,491
OIL-FIELD EQUIPMENT & SERVICES 3.69%
Camco International, Inc. ........................ 7,000 322,875
BJ Services Co. .................................. 7,000 357,000*
Prudential Steel Ltd. ............................ 25,000 392,193
----------
1,072,068
(Continued)
- --------------------------------------------------------------------------------
17
<PAGE>
U.S. GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONTINUED)
- --------------------------------------------------------------------------------
OIL & GAS 59.21%
3DX Technologies, Inc. ........................... 25,000 $ 275,000*
Abacan Resource Corporation ...................... 100,000 868,750*
Amerada Hess Corporation ......................... 3,900 225,713
Amoco Corporation ................................ 5,900 474,950
Apache Corporation ............................... 15,000 530,625
Benton Oil and Gas Co. ........................... 7,500 169,688*
British Petroleum Co. plc, ADR ................... 4,000 565,500
Canadian Occidental Petroleum Ltd. ............... 13,000 208,000
Chesapeake Energy Corporation .................... 5,000 278,125*
Chevron Corporation .............................. 4,000 260,000
Coastal Corporation .............................. 6,000 293,250
Cooper Cameron Corporation ....................... 6,200 474,300*
Coplex Resources N.L ............................. 1,600,000 317,600*
Diamond Offshore Drilling, Inc. .................. 2,500 142,500*
Energy Africa Limited, GDR ....................... 20,000 357,500*
Enron Corporation ................................ 5,700 245,813
Enron Oil & Gas Company .......................... 10,000 252,500
ENSCO International, Inc. ........................ 18,800 911,800*
ENSERCH Corporation .............................. 12,000 276,000
Ensign Resource Service Group, Inc. .............. 35,000 644,754
Epic Energy, Inc. (RS) ........................... 30,000 8,757*
Epic Energy, Inc. Special Warrants (RS) .......... 300,000 330,960*
Exxon Corporation ................................ 5,000 490,000
Falcon Drilling Company, Inc. .................... 10,000 392,500*
Force Energy Gas Exploration, Inc. ............... 17,500 634,375*
GeoScience Corporation ........................... 5,900 76,700*
Harken Energy Corp. .............................. 100,000 300,000*
Hurricane Hydrocarbons Ltd. ......................
Special Warrants (RS) .......................... 34,000 130,740*
International Petroleum Corporation .............. 75,000 437,798*
Louisiana Land and Exploration Company ........... 5,000 268,125
Mobil Corporation ................................ 3,700 452,325
Novus Petroleum Limited .......................... 105,932 242,266
Oil Search Ltd. .................................. 200,000 389,100
Precision Drilling Corporation ................... 18,500 641,112*
Schlumberger, Ltd. ............................... 2,500 249,688
Sonat, Inc. ...................................... 5,000 257,500
Stampeder Exploration Ltd. ....................... 50,000 277,270*
(Continued)
- --------------------------------------------------------------------------------
18
<PAGE>
U.S. GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONTINUED)
- --------------------------------------------------------------------------------
OIL & GAS (CONTINUED)
Tarragon Oil & Gas Ltd. .......................... 10,000 $ 109,449*
Tenke Mining Corporation
Special Warrants (RS) .......................... 50,000 188,800*
Texaco, Inc. ..................................... 5,600 549,500
Tidewater, Inc. .................................. 6,000 271,500
Titan Exploration, Inc. .......................... 15,000 180,000*
Total S.A., ADR .................................. 12,000 483,000
TransCanada Pipelines Ltd. ....................... 15,000 262,500
Transocean Offshore Inc. ......................... 4,000 250,500
Triton Energy Corporation ........................ 8,000 388,000*
USX-Marathon Group ............................... 10,000 238,750
Unocal Corporation ............................... 7,000 284,375
Woodside Petroleum Ltd. .......................... 90,000 656,802
----------
17,214,760
PAPER PRODUCTS 3.54%
Lafayette Paper Mills Limited (RS) ............... 600,000 86,400*
Louisiana-Pacific Corporation .................... 9,500 200,688
Mead Corporation ................................. 3,800 220,875
Temple-Inland, Inc. .............................. 4,500 243,563
Willamette Industries, Inc. ...................... 4,000 278,500
----------
1,030,026
PRECIOUS METALS 3.34%
Aber Resources, Ltd. ............................. 25,000 339,293*
Alumax, Inc. ..................................... 5,000 166,875*
Ashanti Goldfields Co. Ltd., GDR ................. 8,000 99,000
Combined Metals Reduction Co. (RS) ............... 535,000 -0-*
Fischer-Watt Gold Company, Inc. .................. 10,000 6,563*
Fischer-Watt Gold Company, Inc. ..................
Units (RS) .................................... 400,000 317,080*
Goldbeam Resources Ltd. (RS) + .................. 300,000 -0-*
Osmium Holdings Units (RS) ....................... 25 40,779*
----------
969,590
PRECIOUS STONES 61%
Star Resources Corporation ....................... 600,000 144,480*
Hymex Diamond Corporation ........................ 20,000 33,564*
----------
178,044
(Continued)
- --------------------------------------------------------------------------------
19
<PAGE>
U.S. GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONTINUED)
- --------------------------------------------------------------------------------
RAILROADS 2.24%
Burlington Northern Santa Fe ..................... 2,400 $ 207,300
CSX Corporation .................................. 4,600 194,350
Illinois Central Corporation ..................... 7,800 249,600
----------
651,250
MISCELLANEOUS 4.19%
A&B Geoscience Corporation
(geophysical computer services) ................ 100,000 125,870*
A&B Geoscience Corporation Warrants
(RS) (geophysical computer services) ........... 100,000 3,650*
AGL Resources, Inc. (gas utilities) .............. 12,000 253,500
Broken Hill Proprietary Co. Ltd. .................
(diversified operations) ....................... 15,000 213,453
Hvide Marines, Inc. (marine services) ............ 20,000 432,505*
Kesoram Industries Ltd., GDR
(diversified manufacturer) ..................... 62,500 71,481*
SouthernEra Resources Ltd. .......................
(diversified minerals) ........................ 20,000 113,828*
----------
1,214,287
----------
TOTAL COMMON STOCKS AND WARRANTS
(cost $24,359,218) ............................. 28,792,453
----------
Principal
Amount
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 3.49%
- --------------------------------------------------------------------------------
Joint Repurchase Agreement, 6.25%, 12/31/96,
due 1/2/97, repurchase price $1,017,188,
collateralized in a joint repurchase
account (cost $1,016,835) ...................... $1,016,835 1,016,835
----------
TOTAL INVESTMENTS 102.55%
(cost $25,376,053) ............................. $29,809,288
==========
(Continued)
- --------------------------------------------------------------------------------
20
<PAGE>
U.S. GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
- --------------------------------------------------------------------------------
HOLDINGS BY COUNTRY
- --------------------------------------------------------------------------------
United States 58.5%
Canada 22.0%
Australia 5.5%
United Kingdom 3.3%
France 1.6%
South Africa 1.3%
Papua New Guinea 1.3%
Korea 1.0%
Various 2.1%
Cash Equivalents - US 3.4%
------
Total Investments 100.0%
======
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
21
<PAGE>
U.S. WORLD GOLD FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS 104.76%
- --------------------------------------------------------------------------------
MAJOR GOLD PRODUCING COMPANIES 23.34%
Ashanti Goldfields Co. Ltd. ...................... 941,819 $11,655,010
Ashanti Goldfields Co. Ltd. ......................
Preference Stock ............................... 203,932 450,690
Barrick Gold Corp. ............................... 900,000 25,875,000
Battle Mountain Gold Co. ......................... 725,000 4,984,375
Freeport-McMoRan Copper & Gold Inc. .............. 150,000 4,218,750
Newmont Mining Corp. ............................. 175,000 7,831,250
----------
55,015,075
GOLD PRODUCING COMPANIES 36.51%
Agnico-Eagle Mines Ltd. .......................... 400,000 5,618,400
Aurizon Mines Ltd. ............................... 700,000 638,470*
Cambior, Inc. .................................... 300,000 4,387,500
Cathedral Gold Corp.+ ........................... 600,000 1,050,720*
Dayton Mining Corporation ........................ 309,800 2,057,041*
Delta Gold N.L ................................... 10,000,000 18,741,000*
Fisher-Watt Gold Company, Inc.+ ................. 1,000,000 656,300
Fischer-Watt Gold Company, Inc. ..................
Units (RS) + .................................. 1,600,000 1,268,320*
Geomaque Explorations Ltd. ....................... 500,000 1,203,950*
Getchell Gold Corporation ........................ 300,360 11,526,315*
Great Central Mines N.L .......................... 750,000 2,132,175*
Greenstone Resources Ltd. ........................ 1,250,000 14,547,625*
Kinross Gold Corp. ............................... 450,000 3,184,965*
Macraes Mining Company Ltd. ...................... 750,000 1,727,175
Meridian Gold Inc. ............................... 2,400,000 10,069,200
Miranda Mining Development
Corporation (RS) ............................... 1,600,000 1,615,520*
Pacific Island Gold N.L .......................... 2,000,000 476,400*
Rea Gold Corp.+ ................................. 2,290,000 2,857,233*
Ross Mining N.L .................................. 1,160,248 1,133,214
Vista Gold ....................................... 854,300 1,153,220
----------
86,044,743
(Continued)
- --------------------------------------------------------------------------------
22
<PAGE>
U.S. WORLD GOLD FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONTINUED)
- --------------------------------------------------------------------------------
GOLD DEVELOPMENT COMPANIES 7.00%
Ancash Resources
Special Warrants (RS) .......................... 400,000 $ 233,480
Canyon Resources Corp. ........................... 1,405,183 3,688,605*
Canyon Resources Corp. Warrants (RS) ............. 166,667 -0-
Crown Resources Corp. + .......................... 750,000 4,640,625*
IAMGOLD International African
Mining Gold Corporation ........................ 1,250,000 6,065,305*
IAMGOLD International African
Mining Gold Corporation Warrants,
Class B (RS) ................................... 333,330 -0-*
Laguna Gold Company .............................. 500,000 419,550
Laguna Gold Company, (RS) ........................ 280,000 211,456
Laguna Gold Company Warrants ..................... 500,000 54,700
Metallica Resources, Inc. ........................ 350,000 1,174,750*
----------
16,488,461
GOLD EXPLORATION COMPANIES 14.26%
Argosy Mining Corporation ........................ 220,000 319,440
Argosy Mining Corporation Warrants (RS) .......... 110,000 -0-
Birch Mountain Resources, Ltd. ...................
Warrants (RS) ................................. 50,000 -0-
Bre-X Minerals Ltd. .............................. 250,000 3,958,400*
Bro-X Minerals Ltd. .............................. 30,000 52,536
Crown Butte Resources Ltd. ....................... 275,000 451,468*
Essex Resource Corporation ....................... 99,400 235,717*
Francisco Gold Corp. ............................. 200,000 2,188,980*
Gold Corporation of Africa Ltd. (RS)+ ........... 150,000 240,000
Intermin Resource Corporation, Ltd. .............. 702,367 237,049*
International Capri Resources Ltd.+ ............. 200,000 125,500*
Leo Shield Exploration NL ........................ 1,000,000 532,000
Lithos Corporation ............................... 400,000 796,800
Lone Star Exploration NL, Warrants (RS) ......... 150,000 -0-
Mink International Resources Corporation ......... 400,000 496,160*
Nevsun Resources Ltd.+ .......................... 250,000 1,422,850*
Nevsun Resources Ltd. ............................
Warrants (RS)+ ................................ 265,000 1,121,480*
Nevsun Resources Ltd. ............................
Special Warrants (RS)+ ........................ 50,000 256,110*
(Continued)
- --------------------------------------------------------------------------------
23
<PAGE>
U.S. WORLD GOLD FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONTINUED)
- --------------------------------------------------------------------------------
GOLD EXPLORATION COMPANIES (CONTINUED)
Opawica Exploration Inc.+ ....................... 405,000 $ 561,492*
Ormonde Mining plc+ ............................. 2,500,000 465,500*
Orvana Minerals Corp. ............................ 250,000 1,322,500*
Otter Gold Mines Ltd. ............................ 300,000 405,000
Otter Gold Mines Ltd., Bonus Options ............. 50,000 11,910
Patrician Gold Mines Ltd.+ ...................... 370,000 140 ,378
Patrician Gold Mines Ltd. ........................
Warrants (RS)+ ................................ 500,000 -0-*
Placer Dome, Inc. ................................ 300,000 6,525,000
Plutonic Resources Ltd. .......................... 500,000 2,322,750
Ranger Minerals NL ............................... 2,450,000 7,490,385
Solitario Resources Corp. ........................ 459,522 908,659*
Tombstone Explorations Company Ltd. .............. 425,000 666,740
Tombstone Explorations Company Ltd. ..............
Warrants (RS) .................................. 212,500 23,247
Vengold Inc. ..................................... 117,500 142,316
Venoro Gold Corp., Class A+ ..................... 900,000 137,880*
Venoro Gold Corp., Class A, Warrants (RS)+ ...... 350,000 45,585
----------
33,603,832
MINING FINANCE 18.02%
Armada Gold Corp., Class A ....................... 450,000 413,730
Euro-Nevada Mining Corp., Ltd .................... 440,000 13,130,964
Euro-Nevada Mining Corp., Ltd
Warrants, Class A .............................. 60,000 1,050,708*
Euro-Nevada Mining Corp., Ltd
Warrants, Class B .............................. 35,000 255,381*
Franco-Nevada Mining Corp. ....................... 300,000 13,735,860
Franco-Nevada Mining Corp. Warrants .............. 20,000 124,042*
The Pioneer Group, Inc. .......................... 580,000 13,775,000
----------
42,485,685
DIAMOND MINING & EXPLORATION .40%
Continental Precious Minerals, Inc. .............. 200,000 262,680*
Redaurum Red Lake Mines Ltd. ..................... 1,000,000 291,900*
Redaurum Red Lake Mines Ltd. Rights .............. 1,000,000 25,538
Star Resources Corp.+ ........................... 1,500,000 361,200*
----------
941,318
(Continued)
- --------------------------------------------------------------------------------
24
<PAGE>
U.S. WORLD GOLD FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONTINUED)
- --------------------------------------------------------------------------------
MINERAL EXPLORATION & DEVELOPMENT 1.58%
Altoro Gold Corp. (RS) ........................... 100,000 $ 49,250
Altoro Gold Corp., Special Warrants (RS) ......... 150,000 197,000
Eagle Mining Corporation NL ...................... 500,000 1,087,900
Eldorado Gold Corporation Ltd. ...................
Special Warrants (RS) .......................... 150,000 906,240
Franc-Or Resources Corporation ................... 64,000 126,086
Panorama Resources NL
Special Warrants (RS) .......................... 1,250,000 492,500
Taseko Mines Ltd. ................................ 96,550 510,750
Taseko Mines Ltd., Warrants (RS) ................. 96,550 -0-
Virginia Gold Mines, Inc. ........................ 125,000 310,100
Virginia Gold Mines, Inc., Warrants (RS) ......... 125,000 50,162
----------
3,729,988
MISCELLANEOUS 3.65%
AMT International Mining Corp.+
(copper exploration) ........................... 1,500,000 1,302,443
AMT International Mining Corp. ...................
Warrants (copper exploration) .................. 1,500,000 164,173
Boron Chemicals International Ltd.+
(mines & boron production) ..................... 976,000 1,851,570
Glencar Explorations PLC (precious
& industrial metals exploration) .............. 872,438 762,075
Osmium Holdings S.A. , Special Warrants (RS)
Units (metal mining) ........................... 365 595,370
Tenke Mining Corp., Special Warrants (RS)
(formerly Consolidated Eurocan Ventures Ltd.)
(oil & gas exploration, development, and
production) .................................... 400,000 1,510,400
Zimasco Consolidated Enterprises Ltd. ............
(RS) (metals producer) ......................... 350,000 2,425,500
----------
8,611,531
TOTAL COMMON STOCKS AND WARRANTS
(cost $166,917,239) ........................... 246,920,633
----------
(Continued)
- --------------------------------------------------------------------------------
25
<PAGE>
U.S. WORLD GOLD FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Amount Value
- --------------------------------------------------------------------------------
CONVERTIBLE SECURITIES .25%
- --------------------------------------------------------------------------------
GOLD PRODUCTION
Macraes Mining Co. Ltd. 7% Convertible
Subordinated Note, due September 15, 1998
(gold producing company) (New Zealand) ......... $ 250,000 $ 591,850
----------
TOTAL CONVERTIBLE SECURITIES (cost $527,803)
TOTAL INVESTMENTS 105.01%
(cost $167,458,553) ........................... $247,512,483
============
- --------------------------------------------------------------------------------
HOLDINGS BY COUNTRY
- --------------------------------------------------------------------------------
Canada 55.2%
United States 23.2%
Australia 14.0%
Various 7.6%
-----
Total Investments 100.0%
=====
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
26
<PAGE>
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS 74.90%
- --------------------------------------------------------------------------------
AGRICULTURE 2.28%
C.P. Pokphand Co. ................................ 600,000 $ 234,663
Shanghai Dajiang Group, Class B .................. 896,940 457,439
----------
692,102
APPAREL/TEXTILES 4.49%
Chaifa Holdings Limited .......................... 1,090,800 285,587
Giordano International Ltd. ...................... 299,000 255,143
Glorious Sun Enterprises ......................... 534,000 222,658*
Shanghai Erdos Cashmere, Class B ................. 337,700 212,751
Shanghai Haixin Co., Class B ..................... 207,600 86,777
Shanghai Sanmao Textile Co., Class B ............. 879,700 202,331*
Yue Yuen Industrial Holdings ..................... 246,000 93,826
----------
1,359,073
AUTO PARTS 1.28%
China Yuchai International Ltd., ADR ............. 43,900 208,525
Shanghai Diesel Engine Co. Ltd., Class B ......... 376,320 178,376
----------
386,901
BUILDING MATERIALS 2.88%
China Southern Glass, Class B .................... 347,011 215,354
Huaxin Cement Co. Ltd., Class B .................. 904,600 253,288
Luoyang Glass Company Limited, Class H ........... 962,000 295,397
Shanghai Yaohua Pilkington Glass Co.,
Class B ........................................ 228,750 108,885
----------
872,924
CHEMICALS 7.98%
Jilin Chemical Industrial Company
Limited, ADR ................................... 3,500 51,187
Jilin Chemical Industrial Company
Limited, Class H ............................... 2,608,000 404,629
Shanghai Chlor-Alkali Chemical Co., Class B ...... 573,600 159,461
Shanghai Petrochemical Co. Ltd., Class H ......... 2,714,000 824,604
Tianjin Bohai Chemical Industry
Company, Class H ............................... 1,248,000 148,447
Yizheng Chemical Fibre Company, Class H .......... 1,844,000 448,215
Zhenhai Refining and Chemical
Company Limited, Class H ....................... 1,035,000 381,376
----------
2,417,919
(Continued)
- --------------------------------------------------------------------------------
27
<PAGE>
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONTINUED)
- --------------------------------------------------------------------------------
COMPUTERS .58%
Acer, Inc. GDR ................................... 10,500 $ 97,650
Founder Hong Kong Limited ........................ 200,000 76,928*
GVC Corp. GDR .................................... 55 419*
----------
174,997
CONSUMER DURABLES 1.92%
Guangdong Kelon Elec Holding ..................... 570,000 368,479
Lian Hua Fibre Corp. Ltd., Class B ............... 268,780 55,369
Shanghai Shangling Electric Appliance,
Class B ........................................ 363,360 157,698
----------
581,546
ELECTRONICS 5.54%
ASM Pacific Technology Ltd. ...................... 100,000 77,574
Samsung Electronics GDR .......................... 3,512 64,972
Shanghai Automation Instrumentation,
Class B ........................................ 1,615,589 348,967
Shenzhen Konka Electronics Group Limited,
Class B ........................................ 385,000 435,549
Siliconeware Precision Industries Company GDR .... 6,240 69,264
Varitronix International, Ltd. ................... 267,000 483,289
Yageo Corporation GDR ............................ 20,247 198,874
----------
1,678,489
ENGINEERING .83%
New World Infrastructure Ltd. .................... 31,201 91,168*
Road King Infrastructure Ltd. .................... 180,000 159,416*
----------
250,584
FINANCE 8.45%
Aeon Credit Service .............................. 286,000 91,519
Guoco Group, Ltd. ................................ 110,000 615,812
HSBC Holdings, Ltd. .............................. 49,200 1,052,764
Peregrine Investment Holdings Limited ............ 305,000 522,497
Peregrine Investment Holdings Limited Warrants ... 26,500 8,480*
Shanghai Lujiazhui, Class B ...................... 277,060 269,856
----------
2,560,928
HOLDING COMPANIES 5.61%
Hutchinson Whampoa, Ltd. ......................... 96,000 754,024
Li & Fung Ltd. .................................. 200,000 177,128
Swire Pacific Ltd. ............................... 70,000 667,464
Vanda Systems & Communication Holdings Ltd. ...... 390,000 102,107
----------
1,700,723
(Continued)
- --------------------------------------------------------------------------------
28
<PAGE>
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTMENT COMPANIES .99%
Cathay Investment Fund Ltd. ...................... 200,000 $ 258,582
ROC Taiwan Fund .................................. 4,000 41,000*
----------
299,582
IRON & STEEL .46%
Maanshan Iron & Steel Co., Class H ............... 640,000 137,359
Shanghai Steel Tube Co. Ltd., Class B ............ 15,240 2,896
----------
140,255
MANUFACTURING 1.00%
Shanghai Hero Pen, Class B ...................... 474,064 194,366
Shanghai Industrial Holdings Ltd. ................ 30,000 109,380*
----------
303,746
MOTOR VEHICLES 4.07%
Qingling Motors Company Ltd., Class H ............ 1,224,000 676,527
Shanghai Dazhong Taxi Shareholding
Co. Ltd., Class B .............................. 673,708 556,483
----------
1,233,010
REAL ESTATE 4.38%
New World Development Co. Ltd. ................... 121,935 823,725
Silver Grant International Industries Ltd. ....... 30,000 13,382
Sun Hung Kai Properties Ltd. ..................... 40,000 490,012
----------
1,327,119
TELECOMMUNICATIONS 2.09%
Hong Kong Telecommunications, Ltd. ............... 183,000 294,570
Shanghai Post & Telecom, Class B ................. 471,700 199,057
Sigma Alpha Group, Ltd. .......................... 48,000 138,000*
----------
631,627
TRANSPORTATION 4.04%
China International Marine Containers Ltd.,
Class B ........................................ 671,320 781,160
China Merchants Shekou Port Service,
Class B ........................................ 366,040 243,727
China Travel International Investment ............ 200,000 88,564
Guangzhou Shipyard Intl. Co., Class H ............ 424,000 107,446
Shenzhen Chiwan Wharf Holdings, Class B .......... 5,913 4,205
----------
1,225,102
(Continued)
- --------------------------------------------------------------------------------
29
<PAGE>
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONTINUED)
- --------------------------------------------------------------------------------
UTILITIES 4.12%
Guangdong Electric Power Company, Class B ........ 240,000 $ 212,244
Hong Kong & China Gas ............................ 220,000 425,238
Hong Kong & China Gas Warrants ................... 10,000 5,559*
Huaneng Power International, Inc. ADR ........... 14,000 315,000*
Shangdong Huaneng Power
Company Ltd. ADR ............................... 29,600 288,600
----------
1,246,641
WHOLESALE-SPECIALTY LINES 1.35%
China Hong Kong Photo Products
Holdings, Ltd. ................................. 450,000 151,270
Guangnan Holdings ................................ 300,000 257,935
----------
409,205
MISCELLANEOUS 10.56%
Amway Asia Pacific Ltd. (wholesale distributor) .. 2,000 84,750
China First Pencil Company Ltd. (office supplies) 831,438 367,496
Citic Pacific Ltd. (conglomerate) ............... 158,200 918,376
Dongfang Electrical Machinery Co., Class H
(electrical equipment) ......................... 766,000 267,399
Lamex Holdings Ltd. (furniture distributor) ...... 200,000 72,403
Livzon Pharmaceutical Group, Class B
(drugs/medicine) ............................... 454,200 269,543
Shanghai China International Travel,
Class B (travel services) ..................... 242,500 107,670
Shanghai Friendship & Overseas Chinese
Co. Ltd., Class B (retail) ..................... 771,606 336,420
Shanghai Jintai Co. Ltd., Class B
(building equipment) ........................... 1,194,550 260,412
Shanghai New Asia Group,
Class B (fast food) ............................ 873,800 391,462
Vitasoy International Holdings (beverages) ....... 284,000 123,925
----------
3,199,856
TOTAL COMMON STOCKS AND WARRANTS
(cost $20,331,913) ........................ 22,692,329
==========
(Continued)
- --------------------------------------------------------------------------------
30
<PAGE>
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Amount Value
- --------------------------------------------------------------------------------
CORPORATE BONDS .32%
- --------------------------------------------------------------------------------
ELECTRONICS
United Microelectronics Corporation, Ltd.
1.25% Convertible, 6/08/2004
(cost $96,630) ................................. $ 70,000 $ 98,263
----------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 24.45%
- --------------------------------------------------------------------------------
Joint Repurchase Agreement, 6.25% 12/31/96,
due 1/2/97, repurchase price $7,410,376,
collaterized in a joint repurchase
account (cost $7,407,804) ...................... 7,407,804 7,407,804
----------
TOTAL INVESTMENTS 99.67%
(cost $27,836,347) ............................. $30,198,396
===========
- --------------------------------------------------------------------------------
HOLDINGS BY COUNTRY
- --------------------------------------------------------------------------------
China 38.9%
Hong Kong 34.3%
Taiwan 1.5%
United States 0.6%
Korea 0.2%
Cash Equivalents - U.S. 24.5%
-----
Total Investments 100.0%
=====
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
31
<PAGE>
U.S. TREASURY SECURITIES CASH FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Yield Amount Value
- --------------------------------------------------------------------------------
UNITED STATES GOVERNMENT OBLIGATIONS 56.62%
- --------------------------------------------------------------------------------
UNITED STATES TREASURY BILLS
Discount 01/09/97 4.92%$ 20,000,000 $ 19,980,867
------------
UNITED STATES TREASURY NOTES
7.50% 01/31/97 7.487% 45,000,000 45,077,262
6.875% 04/30/97 6.84% 30,000,000 30,152,203
8.50% 05/15/97 8.41% 15,000,000 15,170,255
------------
90,399,720
TOTAL UNITED STATES GOVERNMENT
OBLIGATIONS (cost $110,380,587) 110,380,587
------------
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENT 39.71%
- -------------------------------------------------------------------------------
Joint Repurchase Agreement,
6.15%, 12/31/96, due 1/2/97,
repurchase price $77,439,542,
collateralized in a joint
repurchase account
(cost $77,413,079) ...................... 77,413,079 77,413,079
------------
TOTAL INVESTMENTS 96.33%
(cost $187,793,666) .................... $ 187,793,666
============
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
32
<PAGE>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Yield Amount Value
- --------------------------------------------------------------------------------
UNITED STATES GOVERNMENT AGENCY ISSUES 99.04%
- --------------------------------------------------------------------------------
FEDERAL FARM CREDIT BANK 18.94%
VARIABLE NOTES:
5.37% 06/13/97 5.37% $20,000,000 $20,000,000
5.38% 07/01/97 5.41% 10,000,000 9,998,485
5.36% 09/02/97 5.38% 15,000,000 14,997,336
5.305% 10/01/97 5.32% 35,000,000 34,992,567
5.34% 11/26/97 5.36% 15,000,000 14,996,127
FIXED RATE:
5.50% 05/01/97 5.56% 6,000,000 5,997,863
5.85% 08/01/97 5.64% 6,000,000 6,006,919
11.90% 10/20/97 5.59% 10,415,000 10,920,005
5.60% 11/03/97 5.54% 5,000,000 5,001,965
-----------
122,911,267
FEDERAL HOME LOAN BANK 52.93%
DISCOUNT NOTES:
01/02/97 5.25% 6,880,000 6,880,000
01/03/97 5.45% 46,040,000 46,033,037
01/09/97 5.20% 1,925,000 1,923,054
02/20/97 5.35% 20,000,000 19,858,444
04/15/97 5.25% 13,000,000 12,807,704
VARIABLE NOTES:
5.378% 01/03/97 5.42% 19,000,000 18,999,966
5.78% 02/03/97 5.36% 1,000,000 1,000,320
5.31% 02/14/97 5.33% 3,000,000 2,999,788
7.315% 02/14/97 5.54% 1,000,000 1,001,881
6.85% 02/25/97 5.50% 175,000 175,311
4.56% 03/20/97 4.83% 1,450,000 1,449,131
5.486% 05/23/97 5.55% 65,000,000 64,982,848
5.29% 08/14/97 5.35% 10,000,000 9,995,747
5.486% 09/22/97 5.54% 50,000,000 49,978,989
5.498% 09/26/97 5.55% 20,000,000 19,992,455
5.80% 11/07/97 5.80% 200,000 200,000
5.48% 12/16/97 5.49% 10,000,000 9,998,607
5.465% 12/19/97 5.52% 20,000,000 19,988,624
FIXED RATE:
5.43% 01/10/97 5.16% 5,000,000 4,999,990
4.75% 01/13/97 5.58% 1,000,000 999,709
4.40% 01/21/97 5.60% 1,000,000 999,309
(Continued)
- --------------------------------------------------------------------------------
33
<PAGE>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Yield Amount Value
- --------------------------------------------------------------------------------
UNITED STATES GOVERNMENT AGENCY ISSUES (CONTINUED)
- --------------------------------------------------------------------------------
FEDERAL HOME LOAN BANK (CONTINUED)
FIXED RATE (CONTINUED):
4.52% 02/07/97 5.72%$ 1,000,000 $ 998,735
7.30% 02/10/97 5.98% 200,000 200,240
5.265% 03/13/97 5.26% 20,000,000 20,000,000
5.75% 03/14/97 5.65% 500,000 500,001
5.40% 03/25/97 5.69% 20,000,000 19,983,204
5.82% 05/01/97 5.82% 200,000 200,000
6.52% 05/23/97 5.52% 400,000 401,472
5.74% 06/23/97 5.35% 3,525,000 3,531,246
5.84% 06/27/97 6.05% 910,000 909,060
6.00% 08/12/97 5.66% 1,000,000 1,000,224
6.00% 10/17/97 5.37% 575,000 575,076
-----------
343,564,172
STUDENT LOAN MARKETING ASSOCIATION 27.17%
VARIABLE NOTES:
5.62% 01/23/97 5.45% 43,800,000 43,802,869
4.03% 01/28/97 4.86% 3,000,000 2,998,204
7.875% 02/03/97 5.43% 1,000,000 1,001,940
5.645% 02/14/97 5.39% 11,900,000 11,902,919
5.54% 03/03/97 5.50% 5,050,000 5,050,103
5.36% 04/10/97 5.41% 15,795,000 15,792,785
5.33% 04/18/97 5.51% 700,000 699,523
5.84% 04/21/97 5.54% 2,424,000 2,426,083
5.37% 05/08/97 5.26% 10,000,000 9,997,429
5.32% 07/18/97 5.37% 30,000,000 29,992,116
5.965% 09/12/97 5.94% 2,225,000 2,225,164
5.07% 10/01/97 5.19% 10,000,000 9,991,441
5.43% 10/17/97 5.52% 21,925,000 21,909,729
5.50% 10/24/97 5.67% 5,000,000 4,992,726
5.57% 10/30/97 5.47% 1,300,000 1,301,035
5.57% 11/20/97 5.55% 2,825,000 2,825,443
5.39% 11/24/97 5.49% 560,000 559,520
5.65% 11/28/97 5.74% 8,865,000 8,861,599
-----------
176,330,628
TOTAL INVESTMENTS 99.04%
(cost $642,806,067) $ 642,806,067
============
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
34
<PAGE>
U.S. TAX FREE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS 91.69%
- --------------------------------------------------------------------------------
CALIFORNIA 2.91%
Central Coast Water Authority
Revenue, Refunding, Series B .... 5.55% 2/15/2011 $ 560,00 $ 560,700
---------
CONNECTICUT 2.81%
Connecticut State Development
Authority Water Facility
Revenue, Refunding .............. 7.25% 6/01/2020 500,000 540,625
---------
FLORIDA 3.87%
Florida State Board of Education
Capital Outlay GO Unlimited,
Refunding, Series A ............. 7.25% 6/01/2020 700,000 744,625
---------
GEORGIA 3.37%
St. Mary's Housing Authority
Multifamily Revenue,
Refunding ....................... 7.375% 9/01/2022 395,000 417,219
Savannah Hospital Authority
Revenue ......................... 6.20% 7/01/2023 230,000 231,150
---------
648,369
HAWAII 2.08%
Hawaii State Dept
of Budget and Finance ........... 6.00% 07/01/2019 400,000 400,000
---------
ILLINOIS 12.25%
Chicago GO Unlimited Tax,
Series B ........................ 5.125% 1/01/2013 500,000 473,750
Illinois Development Financing
Authority Revenue, Series B ..... 6.25% 9/01/2017 250,000 255,313
Illinois Health Facility Authority
Revenue, Refunding, Series A .... 6.75% 4/15/2012 400,000 423,500
Illinois Health Facility Authority
Revenue, Series A ............... 6.80% 1/01/2022 400,000 415,500
Illinois Regional Transportation
Authority Revenue, Series A...... 7.20% 11/01/2020 250,000 300,000
Illinois State University
Revenue ......................... 5.35% 4/01/2012 500,000 488,750
---------
2,356,813
(Continued)
- --------------------------------------------------------------------------------
35
<PAGE>
U.S. TAX FREE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- --------------------------------------------------------------------------------
MASSACHUSETTS 2.74%
Massachusetts State Health
& Educational Facilities
Authority Revenue,
Refunding, Issue A .............. 7.10% 7/01/2021 $500,000 $ 527,500
---------
MICHIGAN 5.25%
Michigan State Building
Authority Revenue, Series II .. 6.75% 10/01/2011 935,000 1,009,800
---------
MISSISSIPPI 2.08%
Vicksburg Leased Housing
Corp. Housing Revenue,
Refunding, Series A ........... 6.125% 2/15/2022 400,000 400,500
---------
NEBRASKA 1.26%
Nebraska Public Power
District Revenue,
Refunding, Series B ........... 5.25% 1/01/2013 250,000 242,813
---------
NEVADA 5.72%
Clark County Las Vegas
Convention & Visitors
Authority, GO Limited ......... 5.20% 1/01/2009 870,000 852,600
Nevada State Municipal Bond
Bank, Project No. 51,
GO Limited, Series A ............ 5.20% 1/01/2009 250,000 248,125
---------
1,100,725
NEW YORK 1.87%
New York State Dorm
Authority Revenue ............... 7.375% 7/1/2016 305,000 359,900
---------
NORTH CAROLINA 3.54%
Eastern Municipal Power
Agency Revenue,
Refunding, Series A ............. 5.60% 1/01/2010 675,000 681,750
---------
(Continued)
- --------------------------------------------------------------------------------
36
<PAGE>
U.S. TAX FREE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- --------------------------------------------------------------------------------
OHIO 2.49%
Olentangy Local School
District, GO Limited, Series A .. 6.25% 12/01/2015 $240,000 $ 255,000
South Euclid Special
Assessment , GO Limited ......... 6.70% 12/01/2014 200,000 224,500
---------
479,500
OKLAHOMA 1.43%
Muskogee Pollution Control
Revenue, Series A ............... 7.00% 3/01/2017 270,000 276,164
---------
PENNSYLVANIA 1.07%
New Castle Area Hospital
Authority Revenue,
Refunding, Series A ............. 6.50% 11/15/2017 200,000 205,250
---------
RHODE ISLAND 8.05%
North Providence,
GO Unlimited, Series A .......... 6.05% 7/01/2013 500,000 530,000
Providence Public Building
Authority Revenue, Series B...... 7.25% 12/15/2010 450,000 492,750
Rhode Island Depositors
Economic Protection Corp.,
Refunding, Series B ............. 5.80% 2/01/2009 500,000 527,500
---------
1,550,250
SOUTH CAROLINA 4.17%
Charleston County Resource
Recovery Revenue, Series A ...... 9.25% 1/01/2010 750,000 801,870
---------
TENNESSEE 5.29%
Hamilton County Industrial
Development Board Multifamily
Housing Revenue ................. 6.70% 3/01/2021 720,000 732,600
State Development Authority
Revenue, Series 1992 ............. 7.00% 10/01/2011 265,000 285,206
---------
1,017,806
(Continued)
- --------------------------------------------------------------------------------
37
<PAGE>
U.S. TAX FREE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- --------------------------------------------------------------------------------
TEXAS 11.26%
Boerne Texas Certificates
of Obligation, GO
Limited: .........................4.85% 2/01/1997 $20,000 $20,018
4.90% 2/01/1998 25,000 25,007
5.00% 2/01/1999 25,000 25,000
5.10% 2/01/2000 20,000 20,025
5.25% 2/01/2001 30,000 30,000
5.35% 2/01/2002 25,000 25,031
5.45% 2/01/2003 30,000 30,038
5.50% 2/01/2004 25,000 25,063
5.65% 2/01/2005 30,000 30,075
5.75% 2/01/2006 60,000 60,150
Brazos County Health
Facility Revenue,
Refunding, Series B: .............6.00% 1/01/2013 210,000 210,525
6.00% 2/01/2019 300,000 296,625
Collin County Texas
Housing Finance Corp.
Multifamily Revenue,
Series A-2: ......................6.00% 3/01/2010 100,000 101,250
6.00% 3/01/2011 230,000 232,875
Comal Independent
School District: .................4.50% 2/01/1998 110,000 110,065
4.75% 2/01/1999 230,000 230,287
4.90% 2/01/2000 240,000 240,300
5.00% 2/01/2001 255,000 255,319
Pflugerville Independent
School District,
Refunding ........................5.45% 8/15/2015 200,000 200,000
---------
2,167,653
UTAH 1.01%
Intermountain Power Agency
Power Supply Revenue,
Refunding, Series C ..............5.25% 7/01/2014 200,000 194,500
---------
WASHINGTON 1.66%
Seattle Indian Services,
Refunding ........................6.50% 11/01/2017 500,000 319,106
---------
(Continued)
- --------------------------------------------------------------------------------
38
<PAGE>
U.S. TAX FREE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- --------------------------------------------------------------------------------
WEST VIRGINIA 3.68%
Berkeley County Hospital
Revenue, Refunding: ..............6.50% 11/01/2009 $115,000 $ 118,737
6.50% 11/01/2022 280,000 283,500
West Virginia State Hospital
Finance Authority Revenue ........6.10% 1/01/2018 300,000 305,625
-------
707,862
WYOMING 1.83%
Wyoming Community
Development Authority,
Series A .........................6.10% 6/01/2033 350,000 352,187
---------
TOTAL MUNICIPAL BONDS
(cost $17,463,158) ............... 17,646,268
----------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 6.80%
- --------------------------------------------------------------------------------
Joint Repurchase Agreement,
6.25% 12/31/96, due 1/2/97,
repurchase price $1,309,521,
collateralized in a joint
repurchase account
(cost $1,309,066) 1,309,066 1,309,066
------------
TOTAL INVESTMENTS 98.49%
(cost $18,772,224) $ 18,955,334
============
- --------------------------------------------------------------------------------
HOLDINGS BY RATINGS
- --------------------------------------------------------------------------------
AAA/Aaa 42.2%
AA/Aa 14.9%
A 33.0%
BBB/Baa 3.0%
NR-Cash Equivalents 6.9%
-----
Total Investments 100.0%
=====
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
39
<PAGE>
UNITED SERVICES NEAR-TERM TAX FREE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS 95.06%
- --------------------------------------------------------------------------------
ALASKA 8.35%
Alaska Municipal Bond Bank
Authority, Series A, GO ..........4.75% 10/01/1999 $300,000 $ 301,500
Anchorage Alaska Electric
Utility Revenue ..................7.125% 06/01/2006 200,000 215,500
---------
517,000
CALIFORNIA 3.16%
West Hollywood Certificates
of Participation, Series A .......12.00% 02/01/2000 170,000 195,925
---------
FLORIDA 9.60%
Broward County Resource
Recovery Revenue .................7.95% 12/01/2008 290,000 319,000
Palm Beach Co.
Solid Waste Revenue ..............7.90% 07/01/1997 270,000 275,289
---------
594,289
HAWAII 4.21%
Hawaii State GO ..................6.80% 09/01/1998 250,000 260,625
---------
LOUISIANA 5.37%
Slidell Sales & Use
Tax Revenue ......................10.00% 07/01/1999 295,000 332,243
---------
NEBRASKA 4.33%
Nebraska Public Power
Power District Revenue ...........5.70% 01/01/2005 255,000 268,387
---------
NEVADA 8.25%
Nevada State Municipal Bond
Bank Project #51, GO
Series A .........................5.10% 01/01/2008 250,000 249,063
Washoe County Gas & Water
Facilities Revenue ...............6.30% 12/01/2014 250,000 261,875
---------
510,938
NEW JERSEY 4.83%
Washington Township
Board of Education, GO ...........5.10% 02/01/2008 300,000 298,875
---------
(Continued)
- --------------------------------------------------------------------------------
40
<PAGE>
UNITED SERVICES NEAR-TERM TAX FREE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Amount Value
- --------------------------------------------------------------------------------
MUNICIPAL BONDS (CONTINUED)
- --------------------------------------------------------------------------------
OKLAHOMA 3.93%
University of Oklahoma
Revenue ..........................12.00% 03/01/2000 $ 200,000$ 243,250
---------
OHIO 5.51%
Ohio State Building
Authority Revenue: ...............7.30% 03/01/2002 150,000 162,750
7.125% 09/01/2009 175,000 178,623
---------
341,373
OREGON 4.88%
Portland Water System
Revenue ..........................4.80% 08/01/2005 300,000 301,875
---------
SOUTH CAROLINA 7.55%
Charleston County Resource
Recovery Revenue .................9.25% 01/01/2010 250,000 267,290
Piedmont Municipal
Power Agency Revenue .............7.40% 01/01/1997 200,000 200,000
---------
467,290
TEXAS 20.32%
Comal Independent School
District Revenue: ................4.25% 02/01/1997 195,000 195,137
4.50% 02/01/1998 105,000 105,062
Coppell Texas Independent
School District, GO ..............6.50% 08/15/2026 300,000 312,750
Dallas Civic
Center Revenue ...................6.10% 01/01/2008 205,000 205,654
Harris County 10.00% 10/01/1999 100,000 114,250
Texas Correctional Facilities
Financing Corp. Revenue ..........6.85% 09/15/2004 300,000 325,500
---------
1,258,353
WASHINGTON 4.77%
State Public Power Supply
System Nuclear Project
No. 2 Revenue ....................4.375% 07/01/2000 300,000 295,500
---------
TOTAL MUNICIPAL BONDS (cost $5,870,664) 5,885,923
---------
(Continued)
- --------------------------------------------------------------------------------
41
<PAGE>
UNITED SERVICES NEAR-TERM TAX FREE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Amount Value
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 2.54%
- --------------------------------------------------------------------------------
Joint Repurchase Agreement,
6.25%, 12/31/96, due 1/2/97,
repurchase price $157,139,
collateralized in a joint
repurchase account
(cost $157,084) $ 157,084 $ 157,084
------------
TOTAL INVESTMENTS 97.60%
(cost $6,027,748) $ 6,043,007
============
- --------------------------------------------------------------------------------
HOLDINGS BY RATINGS
- --------------------------------------------------------------------------------
AAA/Aaa 37.4%
AA/Aa 25.9%
A 30.9%
BBB/Baa 3.2%
NR-Cash Equivalents 2.6%
-----
Total Investments 100.0%
=====
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
42
<PAGE>
U.S. ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS 89.28%
- --------------------------------------------------------------------------------
AEROSPACE 1.56%
The Boeing Company .................................. 1,475 $ 156,903
Rockwell International Corp. ........................ 1,800 109,575
----------
266,478
BANKS 3.39%
Banc One Corporation ................................ 1,760 75,680
Bank America Corporation ............................ 1,500 149,625
Chase Manhattan Corporation ......................... 900 80,325
CitiCorp ............................................ 1,600 164,800
Nations Bank Corporation ............................ 1,100 107,525
----------
577,955
BEVERAGES 5.61%
Anheuser-Busch Companies Inc. ....................... 2,000 80,000
The Coca-Cola Co. ................................... 11,000 578,875
Pepsi Co., Inc. ..................................... 8,000 239,850
The Seagram Co., Ltd. (Canada) ...................... 1,500 58,125
----------
956,850
BROADCAST/MEDIA .30%
TCI Satellite Entertainment, Inc. ................... 220 2,173*
Tele-Communications, Inc. ...........................
Liberty Media Group ............................... 550 15,709*
U.S. West, Inc. Media Group ......................... 1,800 33,300
----------
51,182
CHEMICALS 2.00%
The Dow Chemical Company ............................ 1,100 86,212
E.I. du Pont de Nemours and Company ................. 2,700 254,812
----------
341,024
COMPUTER SOFTWARE/HARDWARE 13.97%
Automatic Data Processing, Inc. ..................... 2,200 94,325
The BISYS Group, Inc. ............................... 6,000 222,375*
BMC Software, Inc. .................................. 2,000 82,750*
Ceridian Corporation ................................ 1,000 40,500*
Cisco Systems, Inc. ................................. 3,000 190,875*
Compaq Computer Corporation ......................... 1,000 74,250*
First Data Corporation .............................. 8,000 292,000
Hewlett-Packard Company ............................. 4,000 201,000
IBM Corporation ..................................... 2,800 422,800
Informix Corporation ................................ 1,000 20,375*
(Continued)
- --------------------------------------------------------------------------------
43
<PAGE>
U.S. ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
COMPUTER SOFTWARE/HARDWARE (CONTINUED)
InterVoice, Inc. .................................... 3,000 $ 36,750*
Lucent Technologies, Inc. ........................... 3,000 138,750
Microsoft Corporation ............................... 5,600 462,700*
Oracle Systems Corp. ................................ 2,475 103,331*
----------
2,382,781
ELECTRONICS .63%
Emerson Electric Company ............................ 900 87,075
Lo-Jack Corporation ................................. 2,000 20,000*
----------
107,075*
ENTERTAINMENT 2.14%
Time Warner, Inc. ................................... 1,500 56,250
Viacom, Inc. ........................................ 1,500 51,750*
The Walt Disney Company ............................. 3,700 257,612
----------
365,612
FINANCIAL 2.36%
American Express Corporation ........................ 1,900 107,350
Federal Home Loan Mortgage Corp. .................... 700 77,087
Federal National Mortgage Association ............... 4,000 149,000
J.P. Morgan & Co., Inc. ............................. 700 68,337
----------
401,774
FOOD 1.37%
Archer-Daniels-Midland Company ...................... 2,205 48,510
Earthgrains Company ................................. 40 2,090
H.J. Heinz Company .................................. 1,500 53,625
Kellogg Company ..................................... 900 59,063
Sara Lee Corp. ...................................... 1,900 70,775
----------
234,063
HEALTHCARE 12.83%
Abbott Laboratories ................................. 3,000 152,250
Allegiance Corporation .............................. 220 6,078
American Home Products Corp. ........................ 2,200 128,975
Baxter International Inc. ........................... 1,100 45,100
Bristol-Myers Squibb Co. ............................ 1,700 184,875
Columbia/HCA Healthcare Corp. ....................... 3,600 146,700
Eli Lilly and Company ............................... 2,198 160,454
Guidant Corporation ................................. 352 20,064
(Continued)
- --------------------------------------------------------------------------------
44
<PAGE>
U.S. ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
HEALTHCARE (CONTINUED)
Humana, Inc. ........................................ 5,000 $ 95,625*
Imation Corporation ................................. 170 4,781*
Johnson & Johnson ................................... 8,000 398,000
Merck & Co. Inc. .................................... 5,000 396,250
Pfizer Inc. ......................................... 3,400 281,775
Schering-Plough Corp. ............................... 1,400 90,650
Transitional Hospitals Corp. ........................ 18 173*
Warner-Lambert Co. .................................. 1,000 75,000
----------
2,186,750
HOUSEHOLD PRODUCTS 2.91%
Colgate-Palmolive Co. ............................... 700 64,575
The Gillette Co. .................................... 1,400 108,850
The Procter & Gamble Co. ............................ 3,000 322,500
----------
495,925
INSURANCE 3.75%
Allstate Corporation ................................ 1,297 75,064
American Annuity Group, Inc. ........................ 7,000 98,875
American International Group, Inc. .................. 1,800 194,850
General RE Corporation .............................. 800 126,200
ITT Hartford Group, Inc. ............................ 400 27,000
Travelers Group, Incorporated ....................... 2,600 117,975
----------
639,964
MANUFACTURING 1.32%
Allied Signal Inc. .................................. 1,100 73,700
ITT Industries, Inc. ................................ 400 9,800
Minnesota Mining & Mfg. Co. ......................... 1,700 140,888
----------
224,388
MOTOR VEHICLES 2.14%
Chrysler Corporation ................................ 2,130 70,290
Ford Motor Company .................................. 4,000 127,500
General Motors Corporation .......................... 3,000 167,250
----------
365,040
OIL REFINING/DISTRIBUTION 6.84%
Amoco Corp. ......................................... 1,700 136,850
Atlantic Richfield Company .......................... 600 79,500
Chevron Corporation ................................. 2,600 169,000
Exxon Corporation ................................... 2,900 284,200
(Continued)
- --------------------------------------------------------------------------------
45
<PAGE>
U.S. ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
OIL REFINING/DISTRIBUTION (CONTINUED)
Mobil Corp. ......................................... 1,600 $ 195,600
Phillips Petroleum Co. .............................. 1,100 48,675
Royal Dutch Petroleum Co. (Netherlands) ............. 900 153,675
Texaco, Inc. ........................................ 1,000 98,125
----------
1,165,625
RESTAURANTS 1.12%
Darden, Inc. ........................................ 600 5,250
McDonald's Corp. .................................... 3.800 171,950
Uno Restaurant Corporation .......................... 2,000 13,250*
----------
190,450
RETAIL 3.20%
Best Buy Company, Inc. .............................. 5,000 53,125*
The Home Depot, Inc. ................................ 1,800 90,225
OfficeMax, Inc. ..................................... 5,000 53,125*
Sears, Roebuck and Co. .............................. 2,400 110,700
Toys "R" Us, Inc. ................................... 1,100 33,000*
Wal-Mart Stores, Inc. ............................... 9,000 205,875
----------
546,050
SEMICONDUCTORS 4.02%
Applied Materials, Inc. ............................. 1,000 35,938*
Intel Corporation ................................... 3,200 419,000
Motorola, Inc. ...................................... 2,300 141,163
Texas Instruments Incorporated ...................... 1,400 89,250
----------
685,351
TELECOMMUNICATIONS 7.96%
360 Communications Company .......................... 466 10,776*
Airtouch Communications, Inc. ....................... 2,000 50,500*
Ameritech Corp. ..................................... 2,000 121,250
AT&T ................................................ 7,500 326,250
Bell Atlantic Corporation ........................... 1,600 103,600
BellSouth Corp. ..................................... 3,600 145,350
GTE Corp. ........................................... 3,800 172,900
MCI Communications Corp. ............................ 2,700 88,256
NYNEX Corp. ......................................... 1,700 81,813
SBC Communications, Inc. ............................ 2,200 113,850
Sprint Corp. ........................................ 1,400 55,825
Tele-Communications, Inc., Class A .................. 2,200 28,738
U.S. West, Inc. Communications Group ................ 1,800 58,050*
----------
1,357,158
(Continued)
- --------------------------------------------------------------------------------
46
<PAGE>
U.S. ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
WASTE MANAGEMENT .59%
Browning Ferris Industries, Inc. .................... 1,600 $ 42,000
WMX Technologies, Inc. .............................. 1,800 58,725
----------
100,725
MISCELLANEOUS 9.27%
Amway Asia Pacific Ltd. .............................
(wholesale distributor) (Hong Kong) ............... 2,000 84,750
Caterpillar Inc. (machinery) ........................ 800 60,200
Continental Homes Holding Corp. .....................
(homebuilding) .................................... 1,300 27,625
Eastman Kodak Co. (photography, imaging) ............ 1,300 104,325
Equity Corporation International
(funeral services) ................................. 2,000 40,000*
General Electric (conglomerate) ..................... 6,400 632,800
Helen of Troy Limited
(personal care) .................................... 2,000 44,000*
ITT Corp. (conglomerate) ............................ 400 17,350*
Oxford Resources Corporation
(automobile leasing) .............................. 1,000 30,875*
Pacific Gas and Electric Company (utilities) ........ 1,700 35,700
Philip Morris Companies Inc. (tobacco) .............. 3,900 439,238
Xerox Corp. (office equipment) ...................... 1,200 63,150
----------
1,580,013
TOTAL COMMON STOCKS (cost $9,878,033) 15,222,233
----------
Principal
Amount
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 12.09%
- --------------------------------------------------------------------------------
Joint Repurchase Agreement, 6.25%,
12/31/96, due 1/2/97, repurchase
price $2,062,342, collaterized
in a joint repurchase account
(cost $2,061,626) $ 2,061,626 2,061,626
-----------
TOTAL INVESTMENTS 101.37%
(cost $11,939,659) $ 17,283,859
===========
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
47
<PAGE>
U.S. INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS 92.72%
- --------------------------------------------------------------------------------
AUTOMOBILES 1.00%
Ford Motor Company .................................. 3,000 $ 95,625
----------
BEVERAGES-SOFT DRINK .91%
Pepsico ............................................. 3,000 87,750
----------
COMMUNICATION EQUIPMENT 1.52%
Lucent Technology ................................... 3,148 145,595
----------
CONGLOMERATE .46%
Hanson, plc ADR (UK) ................................ 6,500 43,875
----------
FOOD & HEALTH DISTRIBUTION 1.02%
Sysco Corp. ......................................... 3,000 97,875
----------
ELECTRIC, GAS AND WATER UTILITIES 22.11%
AGL Resources, Inc. ................................. 3,300 69,713
American Electric Power Company ..................... 2,000 82,250
Baltimore Gas and Electric Company .................. 3,000 80,250
Calenergy, Inc. ..................................... 5,000 168,125*
Carolina Power and Light ............................ 2,500 91,250
Central & South West Corporation .................... 5,000 128,125
DPL Inc. ............................................ 4,000 98,000
DQE Inc. ............................................ 4,000 116,000
Duke Power Company .................................. 1,500 69,375
Empresa Nacional de Electricidad, SA, ADR (Spain) ... 2,000 140,000
GPU, Inc. ........................................... 5,000 168,125
Houston Industries, Inc. ............................ 8,000 181,000
Minnesota Power & Light Company ..................... 3,000 82,500
Public Service Company of Colorado .................. 4,000 155,500
Sierra Pacific Resources ............................ 5,000 143,750
Texas Utilities Company ............................. 2,000 81,500
TNP Enterprises ..................................... 2,000 54,750
Washington Water Power Company ...................... 5,000 93,125
Western Resources ................................... 4,000 123,500
----------
2,126,838
(Continued)
- --------------------------------------------------------------------------------
48
<PAGE>
U.S. INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
FINANCIAL SERVICES 2.16%
Allied Irish Banks, plc. ADR (Ireland) .............. 3,500 $ 96,688
First Australia Prime Income Funds, Inc. ............ 12,600 111,038
----------
207,726
HOMEBUILDING .99%
Rouse Company ....................................... 3,000 95,250
----------
HOUSEWARES .95%
Rubbermaid Inc. ..................................... 4,000 91,000
----------
INSURANCE 1.26%
Travelers Group Inc. ................................ 2,667 121,000
----------
INVESTMENT BANK/BROKERAGE 2.16%
A.G. Edwards ........................................ 3,500 117,688
Everen Capital Corp. ................................ 4,000 89,500
----------
207,188
NATURAL GAS TRANSMISSION & DISTRIBUTION 14.16%
The Coastal Corp. ................................... 5,000 244,375
Consolidated Natural Gas Company .................... 3,000 165,750
Enron Corp. ......................................... 3,500 150,938
MCN Corp. ........................................... 4,000 115,500
New Jersey Resources Corp. .......................... 5,000 146,250
Peoples Energy Corp. ................................ 3,000 101,625
Sonat Inc. .......................................... 3,000 154,500
The Williams Companies, Inc. ........................ 7,500 281,250
----------
1,360,188
OIL AND GAS 5.56%
AMOCO Corporation ................................... 1,000 80,500
Chevron Corporation ................................. 1,500 97,500
Exxon Corp. ......................................... 1,000 98,000
Mobil Corp. ......................................... 1,000 122,250
PanEnergy Corporation ............................... 3,030 136,350
----------
534,600
PHOTOGRAPHY/IMAGING 1.10%
Xerox Corp. ......................................... 2,000 105,250
----------
(Continued)
- --------------------------------------------------------------------------------
49
<PAGE>
U.S. INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS 14.01%
American Health Properties, Inc. .................... 3,000 $ 71,625
Carr Property Trust ................................. 4,000 117,000
Essex Property Trust ................................ 3,000 88,125
Evans Withycombe Residential ........................ 10,000 210,000
Glimcher Realty Trust ............................... 5,000 110,000
Kranzco Realty Trust ................................ 10,000 168,750
Liberty Property Trust .............................. 4,000 103,000
Security Capital Industrial Trust ................... 8,000 171,000
Security Capital Pacific ............................ 5,000 114,375
Shurgard Storage .................................... 3,000 88,875
Taubman Centers Inc. ................................ 8,000 103,000
----------
1,345,750
SERVICES 2.64%
Dun & Bradstreet .................................... 2,000 47,500
Electric Data Systems Corp. ......................... 2,000 86,500
First Data Corp. .................................... 3,276 119,574
----------
253,574
TELEPHONE/TELECOMMUNICATIONS 20.71%
360 Communications Company .......................... 4,166 96,339*
AT&T ................................................ 2,000 87,000
Air Touch Communications, Inc. ...................... 6,000 151,500*
Bell Atlantic Corporation ........................... 1,500 97,125
Century Telephone Enterprises, Inc. ................. 3,500 108,063
Comsat .............................................. 5,000 123,125
Frontier Corp. ...................................... 3,500 79,188
GTE Corporation ..................................... 3,500 159,250
Hong Kong Telecommunications Ltd., ADR
(Hong Kong) ....................................... 6,156 100,035
MCI Communications Corp. ............................ 6,000 196,125
NYNEX Corporation ................................... 1,500 72,183
SBC Communications, Inc. ............................ 2,000 103,500
Sprint Corp. ........................................ 3,000 119,625
Telefonica de Espana, SA, ADS (Spain) ............... 2,000 138,500
US West, Inc. Communications Group .................. 5,000 161,250
US West, Inc. Media Group ........................... 5,000 92,500*
WorldCom, Inc. ...................................... 4,000 104,250*
----------
1,989,558
TOTAL COMMON STOCKS (cost $7,541,713) ............... 8,908,642
----------
(Continued)
- --------------------------------------------------------------------------------
50
<PAGE>
U.S. INCOME FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
PREFERRED STOCKS 4.39%
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES 1.75%
GTE Corporation, 8.75%, Series Y ................... 3,000 $ 79,125
Public Service Enterprise Group, Inc.,
8.625%, Series A .................................. 3,500 88,813
----------
167,938
REAL ESTATE INVESTMENT TRUSTS 2.64%
Public Storage, Inc., 8.875%, Series G .............. 5,000 127,500
Walden Resources Property, 9.20% Unit ............... 5,000 126,016
----------
253,516
TOTAL PREFERRED STOCKS (cost $416,550) .............. 421,454
----------
Principal
Amount
- --------------------------------------------------------------------------------
CONVERTIBLE SECURITIES 1.79%
- --------------------------------------------------------------------------------
PETROCHEMICAL AND COAL PRODUCTS
Atlantic Richfield Co. Exchangeable
Note, 9.00%, 9/15/97, mandatorily
exchangeable at maturity into Lyondell
Petrochemical Company common stock $ 8,000 172,000
------------
TOTAL CONVERTIBLE SECURITIES (cost $194,750) 172,000
------------
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 1.42%
- --------------------------------------------------------------------------------
Joint Repurchase Agreement, 6.25%,
12/31/96, due 1/2/97, repurchase
price $137,330, collateralized
in a joint repurchase account
(cost $137,282) 137,282 137,282
------------
TOTAL INVESTMENTS 100.32%
(cost $8,290,295) $ 9,639,378
===========
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
51
<PAGE>
U.S. REAL ESTATE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS 85.02%
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS 73.82%
APARTMENTS 20.11%
Avalon Properties, Inc. ............................. 13,500 $ 388,125
Bay Apartment Communities ........................... 13,000 468,000
BRE Properties, Inc. ................................ 14,000 346,500
Camden Property Trust ............................... 15,000 423,375
Colonial Properties Trust ........................... 8,000 243,000
Columbus Realty Trust ............................... 12,000 273,000
Equity Residential Properties Trust ................. 6,500 268,125
Essex Property Trust, Inc. .......................... 12,000 352,500
Oasis Residential, Inc. ............................. 16,500 375,375
Post Properties, Inc. ............................... 10,000 402,500
Security Capital Atlantic Inc. ...................... 15,000 367,500
Security Capital Pacific Trust ...................... 18,000 411,750
----------
4,319,750
DIVERSIFIED 7.12%
Duke Realty Investments, Inc. ....................... 11,000 423,500
First Union Real Estate Investments ................. 15,000 183,750
Liberty Property Trust .............................. 11,500 296,125
Santa Anita Realty Enterprises, Inc. ................ 6,000 157,500
Spieker Properties, Inc. ............................ 13,000 468,000
----------
1,528,875
HEALTHCARE 1.98%
LTC Properties, Inc. ................................ 23,000 425,500
----------
HOTEL/RESTAURANT 7.70%
Boykin Lodging Company .............................. 7,500 179,610
FelCor Suite Hotels, Inc. ........................... 13,000 459,875
Patriot American Hospitality, Inc. .................. 12,000 517,500
Starwood Lodging Trust .............................. 9,000 496,125
----------
1,653,110
MANUFACTURED HOME 2.00%
Manufactured Home Communities, Inc. ................. 18,500 430,125
----------
(Continued)
- --------------------------------------------------------------------------------
52
<PAGE>
U.S. REAL ESTATE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS (CONTINUED)
OFFICE PROPERTY 17.29%
Arden Realty Group, Inc. ............................ 14,000 $ 388,500
Beacon Properties Corporation ....................... 13,000 476,125
Brandywine Realty Trust ............................. 11,500 224,250
Cali Realty Corporation ............................. 15,000 463,125
CarrAmerica Realty Corporation ...................... 19,000 555,750
Highwoods Properties, Inc. .......................... 13,000 438,750
Prentiss Properties Trust ........................... 10,000 250,000
Reckson Associates Realty Corporation ............... 11,200 473,200
TriNet Corporate Realty Trust, Inc. ................. 12,500 443,750
----------
3,713,450
REGIONAL MALLS 2.16%
Simon DeBartolo Group, Inc. ......................... 15,000 465,000
----------
SHOPPING CENTERS 7.63%
Developers Diversified Realty Corp. ................. 12,000 445,500
Excel Realty Trust, Inc. ............................ 12,000 304,500
Federal Realty Investment Trust ..................... 10,000 271,250
Glimcher Realty Trust ............................... 15,000 330,000
Regency Realty Corporation .......................... 11,000 288,750
----------
1,640,000
STORAGE 3.83%
Public Storage, Inc. ................................ 19,000 589,000
Sovran Self Storage, Inc. ........................... 7,500 234,375
----------
823,375
WAREHOUSE/INDUSTRIAL 4.00%
Bedford Property Investors, Inc. .................... 23,000 402,500
First Industrial Realty Trust, Inc. ................. 15,000 455,625
----------
858,125
OTHER 11.20%
HOTEL FACILITIES 4.69%
Aztar Corporation ................................... 13,000 91,000*
Host Marriott Corp. ................................. 29,900 478,400*
ITT Corporation ..................................... 10,000 437,250*
----------
1,006,650
(Continued)
- --------------------------------------------------------------------------------
53
<PAGE>
U.S. REAL ESTATE FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Shares Value
- --------------------------------------------------------------------------------
COMMON STOCKS (CONTINUED)
- --------------------------------------------------------------------------------
OTHER (CONTINUED)
REAL ESTATE DEVELOPMENT 2.65%
Catellus Development Corporation .................... 25,000 $ 284,375*
Rouse Company ....................................... 9,000 285,750
----------
570,125
MISCELLANEOUS 3.86%
Lend Lease Corporation Limited
(real estate and financial
services) (Australia) ............................ 7,500 145,320
Skyline Corporation
(manufactured mobile and
multi-sectional homes) ............................ 10,000 247,500
Trizec Hahn Corporation
(diversified operations) .......................... 19,800 435,600
----------
828,420
TOTAL COMMON STOCKS (cost $15,616,592) .............. 18,262,505
----------
- --------------------------------------------------------------------------------
CONVERTIBLE PREFERRED STOCK 1.01%
- --------------------------------------------------------------------------------
REAL ESTATE INVESTMENT TRUSTS
Security Capital Industrial Trust, 7%, Series B
(cost $200,000) ................................... 8,000 218,000
----------
Principal
Amount
- --------------------------------------------------------------------------------
REPURCHASE AGREEMENT 8.33%
- --------------------------------------------------------------------------------
Joint Repurchase Agreement, 6.25%,
12/31/96, due 1/2/97, repurchase price
$1,790,617, collateralized in a joint
repurchase account (cost $1,789,995) $1,789,995 1,789,995
--------------
TOTAL INVESTMENTS 94.36% (cost $17,606,587) $ 20,270,500
============
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
54
<PAGE>
UNITED SERVICES INTERMEDIATE TREASURY FUND
- --------------------------------------------------------------------------------
Portfolio of Investments
December 31, 1996
Principal
Coupon Maturity Amount Value
- --------------------------------------------------------------------------------
UNITED STATES GOVERNMENT OBLIGATIONS 98.51%
- --------------------------------------------------------------------------------
United States Treasury Note
7.5% 11/15/2001 $800,000 $ 842,704
----------
TOTAL INVESTMENTS 98.51%
(cost $835,629) $ 842,704
==========
See notes to portfolios of investments.
- --------------------------------------------------------------------------------
55
<PAGE>
NOTES TO PORTFOLIOS OF INVESTMENTS
- --------------------------------------------------------------------------------
LEGEND
* - Non-income producing security
+ - Affiliated company (see below)
ADR - American Depository Receipt
COP - Certificate of Participation
GDR - Global Depository Receipt
GO - General Obligation Bond
IDR - International Depository Receipt
RS - Restricted Security (see below)
WI - When issued security
GENERAL
The percentages shown represent the percentage of investments to net assets of
the fund. The yields reflect the yield as of December 31, 1996. Variable Rate
Notes have periodic reset features which effectively shorten the maturity dates
and reset the interest rates as tied to various interest bearing instruments.
JOINT REPURCHASE AGREEMENT ACCOUNT - SEE ALSO NOTE 1 TO FINANCIAL STATEMENTS
The terms of the repurchase agreements and the securities held as collateral in
the joint repurchase agreement account at December 31, 1996 were:
Lehman Brothers, Inc. repurchase agreement, 6.25%, 12/31/96, due 1/2/97:
$48,040,000 U. S. Treasury Note, 6.0%, 8/15/99
Total principal amount: $48,273,746; Total repurchase value: $48,290,508
Donaldson, Lufkin, Jenrette repurchase agreement, 6.25%, 12/31/96, due 1/2/97:
$16,489,000 U. S. Treasury Bill, 10/16/97
$14,252,000 U. S. Treasury Note, 7.125%, 10/15/98
Total principal amount: $30,000,000; Total repurchase value: $30,010,417
Dean Witter, Inc. repurchase agreement, 6.0%, 12/31/96, due 1/2/97:
$10,385,000 U. S. Treasury Bill, 6/26/97
$ 9,143,000 U. S. Treasury Bill, 5/29/97
$ 4,000,000 U. S. Treasury Note, 7.0%, 4/15/99
$ 2,105,000 U. S. Treasury Note, 7.5%, 11/15/01
$ 4,025,000 U. S. Treasury Note, 10.75%, 2/15/03
Total principal amount: $30,000,000; Total repurchase value: $30,010,000
Each participating fund had its respective percentage of an undivided interest
in the account.
56
<PAGE>
NOTES TO PORTFOLIOS OF INVESTMENTS
- --------------------------------------------------------------------------------
RESTRICTED SECURITIES - INDICATED IN PORTFOLIO OF INVESTMENTS AS "RS"
The following securities are subject to legal or contractual restriction on
their resale. The issuer bears the costs of registration, if any, involved in
the disposition of these securities.
<TABLE>
<CAPTION>
PRICE OF UNRESTRICTED
SHARES ON:
------------------------
ACQUISITION COST PER AGREEMENT ENFORCEABLE
SECURITY DATE SHARE DATE DATE
- ------------------------------------ ----------- --------- --------- -----------
<S> <C> <C> <C> <C>
U.S. WORLD GOLD FUND
COMMON STOCKS
Altoro Gold Corp. 12/05/96 $ 0.55 $0.55 $0.55
Gold Corporation of Africa Ltd. 08/18/96 $ 2.00 n/a n/a
Laguna Gold Company 10/30/96 $ 0.75 $1.04 n/a
Miranda Mining Development Corp. 03/25/96 $ 1.13 n/a n/a
Zimasco Consolidated Enterprises Ltd. 06/15/95 $ 2.50 n/a n/a
WARRANTS AND UNITS
Altoro Gold Corp. 12/05/96 $ 1.47 $1.47 n/a
Ancash Resources 10/01/96 $ 0.73 n/a n/a
Arogosy Mining Corporation 06/17/96 $ 0.00 n/a n/a
Birch Mountain Resources, Ltd. 04/04/96 $ 0.00 n/a n/a
Canyon Resources Corp. 03/27/96 $ 0.00 n/a n/a
Eldorado Gold Corporation Ltd. 12/03/96 $ 6.75 $6.67 $6.67
Fischer-Watt Gold Company, Inc. 10/13/95 $ 0.15 $0.38 $0.34
IAMGOLD International African
Mining Gold Corporation 07/12/95 $ 0.00 n/a n/a
Lone Star Exploration N.L. 03/20/96 $ 0.00 n/a n/a
Nevsun Resources Ltd.
Purchase Warrants 09/21/95 $ 0.00 n/a n/a
Nevsun Resources Ltd.
Special Warrants 09/09/96 $ 7.29 $7.74 $7.74
Osmium Holdings S.A. 10/22/96 $1,191.00 n/a n/a
Panorama Resources N.L. 11/18/96 $ 0.40 $0.52 $0.43
Patrician Gold Mines Ltd. 08/31/95 $ 0.00 n/a n/a
Taseko Mines Ltd. 06/21/96 $ 0.00 n/a n/a
Tenke Mining Corp.
(formerly Consolidated Eurocan
Ventures Ltd.) 09/10/96 $ 3.73 $5.13 $5.13
Tombstone Exploration Company Ltd. 05/01/96 $ 0.00 n/a n/a
Venoro Gold corp., Class A 08/29/96 $ 0.33 $0.32 $0.38
Virginia Gold Mines, Inc. 07/11/96 $ 0.00 n/a n/a
</TABLE>
AT DECEMBER 31, 1996, TOTAL COST OF RESTRICTED SECURITIES WAS $8,183,010 AND THE
TOTAL VALUE WAS $11,241,620, REPRESENTING 4.77% OF NET ASSETS.
57
<PAGE>
NOTES TO PORTFOLIOS OF INVESTMENTS
- --------------------------------------------------------------------------------
RESTRICTED SECURITIES (CONTINUED)
<TABLE>
<CAPTION>
PRICE OF UNRESTRICTED
SHARES ON:
------------------------
ACQUISITION COST PER AGREEMENT ENFORCEABLE
SECURITY DATE SHARE DATE DATE
- ------------------------------------ ----------- --------- --------- -----------
<S> <C> <C> <C> <C>
U. S. GLOBAL RESOURCES FUND
COMMON STOCK
Combined Metals Reduction Co. 03/19/85 to
07/17/85 $ 1.40 n/a n/a
Epic Energy, Inc. 11/06/96 $ 0.30 $1.27 $1.16
Goldbeam Resources Ltd. 05/15/85 to
05/21/85 $ 2.55 n/a n/a
Lafayette Paper Mills Limited 02/21/96 $ 0.25 n/a n/a
Zimasco Consolidated Enterprises
Enterprises Ltd. 06/15/95 $ 2.50 n/a n/a
WARRANTS AND UNITS
A&B GeoScience Corporation 05/15/96 $ 0.00 n/a n/a
Adex Mining Corporation 07/07/95 $ 0.00 n/a n/a
Epic Energy, Inc. 11/06/96 $ 0.75 $1.27 $1.16
Fischer-Watt Gold Company, Inc. 10/13/95 $ 0.15 $0.38 $0.34
Hurricane Hydrocarbons Ltd. 08/30/96 $ 3.29 $4.24 $4.24
Minco Mining & Metals Corporation 06/07/96 $ 1.87 $2.71 $2.71
Osmium Holdings 10/22/96 $1,919.00 n/a n/a
Reunion Mining plc 04/18/94 $ 0.00 n/a n/a
Tenke Mining Corporation 09/10/96 $ 3.73 $5.13 $5.13
</TABLE>
AT DECEMBER 31, 1996, THE TOTAL COST OF RESTRICTED SECURITIES WAS $2,499,318 AND
THE TOTAL VALUE WAS $1,477,946, REPRESENTING 5.08% OF NET ASSETS.
58
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
- --------------------------------------------------------------------------------
[THIS PAGE INTENTIONALLY LEFT BLANK]
59
<PAGE>
<TABLE>
NOTES TO PORTFOLIOS OF INVESTMENTS
- -----------------------------------------------------------------------------------------------------------------------------------
AFFILIATED COMPANIES
The Investment Company Act of 1940 defines affiliates as companies in which a Fund owns at least 5% of the outstanding voting
securities. The following is a summary of transactions with each affiliated company during the six months ended December 31, 1996.
<CAPTION>
CHANGE IN
UNREALIZED MARKET VALUE REALIZED
MARKET VALUE PURCHASES SALES AT APPRECIATION DECEMBER 31, DIVIDEND GAINS
JUNE 30, 1996 AT COST COST (DEPRECIATION) 1996 INCOME (LOSSES)
------------- --------- ------------- -------------- ------------ -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
U.S. GOLD SHARES FUND
East Daggafontein Mines Ltd. ..... $ 2,984,055 $ -0- $ 4,734,121 $ 1,750,066 $ -0- $275,191 $(1,234,307)
Eastern Transvaal Consol-
idated Ltd., ADR .............. 7,778,875 -- 8,986,782(1) 1,207,907 -0- -0- 763,858
Kinross Mines Ltd., ADR .......... 9,354,650 -- 9,454,764(1) 100,114 -0- -0- (1,621.837)
Kinross Mines Ltd. ............... 1,075,000 -- 1,316,477(1) 241,477 -0- -- --
Sub Nigel Gold Mining Co. ........
Ltd., ADR ..................... 54,184 -- -- 13,546 67,730 -- --
------- --------- ------------
$67,730 $275,191 $(2,092,286)
======= ========= ============
U.S. GLOBAL RESOURCES FUND
Goldbeam Resources Ltd. -0- -- -- -- -0- -- --
------- --------- ------------
$ -0- $ -- $ --
======= ========= ============
U.S. WORLD GOLD FUND
AMT International Mining
Corp. Units .................... 824,875 146,146 -- 331,422 $1,302,443 $ -- $ --
Boron Chemicals International Ltd. -0- 1,439,600 -- 411,970 1,851,570 -- --
Cathedral Gold Corp. ............. 1,419,516 -- 204,408 (164,388) 1,050,720 -- (730)
Continental Precious Minerals, Inc. 394,427 -- 90,912 (303,515) -0-(2) -- (39,475)
Crown Resources Corp. ............ 3,937,500 -- -- 703,125 4,640,625 -- --
Fisher-Watt Gold Company, Inc. ... -0- 500,000 -- 156,300 656,300 -- --
Fisher-Watt Gold Company,
Inc. Units ..................... 864,000 -- -- 404,320 1,268,320 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
60
<PAGE>
NOTES TO PORTFOLIOS OF INVESTMENTS
- ------------------------------------------------------------------------------------------------------------------------------------
CHANGE IN
UNREALIZED MARKET VALUE REALIZED
MARKET VALUE PURCHASES SALES AT APPRECIATION DECEMBER 31, DIVIDEND GAINS
JUNE 30, 1996 AT COST COST (DEPRECIATION) 1996 INCOME (LOSSES)
------------- --------- ------------- -------------- ------------ -------- ------------
U.S. WORLD GOLD FUND (CONTINUED)
Gold Corporation of Africa Ltd. $ -0- $ 300,000 $ --- $ (60,000) $ 240,000 $ --- $ ---
Greenstone Resources Ltd. 18,424,209 --- 539,141 (17,885,068) -0-(2) --- 3,783,112
International Capri
Resources Ltd. 296,980 --- --- (171,480) 125,500 --- ---
Nevsun Resources Ltd. 1,860,675 --- 62,680 (375,145) 1,422,850 --- 272,090
Nevsun Resources Ltd. Warrants 1,632,268 --- --- (510,788) 1,121,480 --- ---
Nevsun Resources Ltd.
Special Warrants -0- 364,600 --- (108,490) 256,110 --- ---
Opawica Exploration Inc. 210,273 --- --- 351,219 561,492 --- ---
Ormonde Mining plc 465,500 --- --- -0- 465,500 --- ---
Patrician Gold Mines Ltd. 192,622 --- --- (52,244) 140,378 --- ---
Patrician Gold Mines Ltd.
Warrants 33,000 --- --- (33,000) -0- --- ---
Ranger Minerals N.L. 8,268,250 --- 498,410 (7,769,840) -0-(2) --- 266,289
Rea Gold Corp. 5,475,738 --- 368,619 (2,249,886) 2,857,233 --- 61,587
Star Resources Corp. 643,194 162,961 --- (444,955) 361,200 --- ---
Venoro Gold Corp., Class A 193,600 115,710 --- (171,430) 137,880 --- ---
Venoro Gold Corp., Class A
Warrants -0- 115,393 --- (69,808) 45,585 --- ---
----------- -------- ------------
$18,505,186 $ --- $ 4,342,873
----------- -------- ------------
Affiliated companies may be non-income producing or restricted securities, as reported in the Portfolio of Investments.
<FN>
(1)Company merged during the period into a non-affiliated company.
(2)Holdings represented less than 5% of outstanding shares at December 31, 1996 although ownership was above 5% during the period.
</FN>
- ------------------------------------------------------------------------------------------------------------------------------------
61
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
DECEMBER 31, 1996
ASSETS
Investments, at value:
Unaffiliated issuers (identified cost of $195,463,835; $24,610,708;
$153,324,927; and $27,836,347, respectively)...........................
Affiliated issuers (identified cost of $3,096,319, $765,345, $14,133,626,
and $-0-, respectively)................................................
Total Investments......................................................
Cash...........................................................................
Receivables:
Investments sold............................................................
Dividends...................................................................
Interest ...................................................................
Capital shares sold.........................................................
From manager................................................................
Organizational cost, net.......................................................
Other..........................................................................
Total Assets...........................................................
LIABILITIES
Payables:
Bank overdraft..............................................................
Investments purchased.......................................................
Capital shares redeemed.....................................................
To manager and affiliates...................................................
Accounts payable and accrued expenses.......................................
Distributions on capital shares.............................................
Total Liabilities......................................................
NET ASSETS.......................................................
NET ASSETS CONSIST OF:
Paid-in capital................................................................
Undistributed net investment income (loss).....................................
Accumulated net realized gain (loss) on investments
and foreign currencies.......................................................
Net unrealized appreciation (depreciation) of investments and other
assets and liabilities denominated in foreign currencies.....................
Net assets applicable to outstanding capital shares............................
Capital shares outstanding.....................................................
NET ASSET VALUE, per share.....................................................
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
62
<PAGE>
U.S. U.S. GLOBAL U.S. CHINA REGION
GOLD SHARES RESOURCES WORLD GOLD OPPORTUNITY
FUND FUND FUND FUND
- ------------- -------------- ------------- ---------------
$ 170,868,472 $ 29,809,288 $ 229,007,297 $ 30,202,196
67,730 ----- 18,505,186 -----
- ------------- -------------- ------------- ---------------
170,936,202 29,809,288 247,512,483 30,202,196
177,935 1,719 ----- 1,159
----- 207,618 99,860 78,744
479,652 25,427 ----- 23,997
4,835 177 15,725 3,384
3,224,736 161,433 1,974,013 489,279
----- ----- 463 -----
----- ----- ----- 6,075
21,191 2,919 21,017 4,074
- ------------ -------------- ------------- ---------------
174,844,551 30,208,581 249,623,561 30,808,908
- ------------ -------------- ------------- ---------------
----- ----- 1,277,719 -----
4,374,720 676,415 4,440,437 340,595
49,354,815 45,024 6,790,730 116,623
229,431 44,743 302,776 39,750
117,742 29,654 77,316 16,509
209,910 345,680 1,029,857 -----
- ------------ -------------- ------------- --------------
54,286,618 1,141,516 13,918,835 513,477
- ------------ -------------- ------------- --------------
$120,557,933 $ 29,067,065 $ 235,704,726 $ 30,295,431
============ ============== ============= ==============
$310,722,273 $ 24,172,500 $ 203,429,869 $ 33,297,875
782,655 (61,641) (574,146) 80,170
(163,289,528) 522,971 (47,204,927) (5,444,663)
(27,657,467) 4,433,235 80,053,930 2,362,049
- ------------- -------------- ------------- -------------
$ 120,557,933 $ 29,067,065 $ 235,704,726 $ 30,295,431
============= ============= ============= =============
85,722,403 4,107,364 12,298,132 4,016,812
============= ============= ============= =============
$ 1.41 $ 7.08 $ 19.17 $ 7.54
============= ============= ============= =============
63
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
DECEMBER 31, 1996
ASSETS
Investments, at value (identified cost of $187,793,666; $642,806,067;
$18,772,224; and $6,027,748, respectively)................................
Cash...........................................................................
Receivables:
Investments sold............................................................
Dividends...................................................................
Interest ...................................................................
Capital shares sold.........................................................
From manager ...............................................................
Organizational cost, net.......................................................
Other..........................................................................
Total Assets...........................................................
LIABILITIES
Payables:
Investments purchased.......................................................
Capital shares redeemed.....................................................
To manager and affiliates...................................................
Accounts payable and accrued expenses.......................................
Distributions on capital shares.............................................
Total Liabilities......................................................
NET ASSETS.......................................................
NET ASSETS CONSIST OF:
Paid-in capital................................................................
Undistributed net investment income (loss).....................................
Accumulated net realized gain (loss) on investments
and foreign currencies.......................................................
Net unrealized appreciation (depreciation) of investments and other
assets and liabilities denominated in foreign currencies.....................
Net assets applicable to outstanding capital shares............................
Capital shares outstanding.....................................................
NET ASSET VALUE, per share.....................................................
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
64
<PAGE>
U.S. U.S.
TREASURY GOVERNMENT UNITED SERVICES
SECURITIES SECURITIES U.S. NEAR-TERM
CASH SAVINGS TAX FREE TAX FREE
FUND FUND FUND FUND
- -------------- ------------- ------------- --------------
$ 187,793,666 $ 642,806,067 $ 18,955,334 $ 6,043,007
15,250 1,506 202 25
----- ----- ----- -----
----- ----- ----- -----
1,976,002 5,624,002 337,924 148,419
6,985,985 2,487,662 68,577 4,767
----- ----- 13,801 7,367
----- 139,079 ----- -----
119,799 48,066 3,884 3,188
- -------------- ------------- ------------- --------------
196,890,702 651,106,382 19,379,722 6,206,773
- -------------- ------------- ------------- --------------
----- ----- ----- -----
1,713,836 1,987,515 111,778 5,050
144,397 ----- ----- -----
80,735 83,365 7,712 3,405
----- ----- 14,968 6,474
- -------------- ------------- ------------- --------------
1,938,968 2,070,880 134,458 14,929
- -------------- ------------- ------------- --------------
$ 194,951,734 $ 649,035,502 $ 19,245,264 $ 6,191,844
============== ============= ============== ==============
$ 194,899,573 $ 649,550,763 $ 19,213,676 $ 6,380,200
52,161 1,639,764 37,188 32,914
----- (2,155,025) (188,710) (236,529)
----- ----- 183,110 15,259
- ------------- ------------- -------------- --------------
$ 194,951,734 $ 649,035,502 $ 19,245,264 $ 6,191,844
============= ============= ============== ==============
194,930,254 649,082,672 1,634,107 591,701
============= ============= ============== ==============
$ 1.00 $ 1.00 $ 11.78 $ 10.46
============= ============= ============== ==============
65
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
DECEMBER 31, 1996
ASSETS
Investments, at value (identified cost of $11,939,659, $8,290,295, $17,606,587,
and $835,629, respectively)...............................................
Cash...........................................................................
Receivables:
Investments sold............................................................
Dividends...................................................................
Interest ...................................................................
Capital shares sold.........................................................
From manager................................................................
Organizational cost, net.......................................................
Other..........................................................................
Total Assets...........................................................
LIABILITIES
Payables:
Investments purchased.......................................................
Capital shares redeemed.....................................................
To manager and affiliates...................................................
Accounts payable and accrued expenses.......................................
Distributions on capital shares.............................................
Total Liabilities......................................................
NET ASSETS.......................................................
NET ASSETS CONSIST OF:
Paid-in capital................................................................
Undistributed net investment income (loss).....................................
Accumulated net realized gain (loss) on investments
and foreign currencies.......................................................
Net unrealized appreciation (depreciation) of investments and other
assets and liabilities denominated in foreign currencies.....................
Net assets applicable to outstanding capital shares............................
Capital shares outstanding.....................................................
NET ASSET VALUE, per share.....................................................
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
66
<PAGE>
U.S. UNITED SERVICES
ALL AMERICAN U.S. U.S. INTERMEDIATE
EQUITY INCOME REAL ESTATE TREASURY
FUND FUND FUND FUND
- ------------- ------------- ------------- ------------------
$ 17,283,859 $ 9,639,378 $ 20,270,500 $ 842,704
976 4,572 4,033 872
----- ----- ----- -----
26,429 27,873 116,007 -----
716 48 311 7,790
12,312 82,006 2,520,235 -----
13,594 ----- ----- 7,325
----- ----- ----- -----
3,740 3,499 3,197 3,829
- ------------ ------------- ------------ ----------------
17,341,626 9,757,376 22,914,283 862,520
- ------------ ------------- ------------ ----------------
50,413 ----- 1,370,335 -----
215,236 33,438 30,655 2,952
----- 13,442 16,587 -----
17,061 10,621 6,872 1,738
9,074 91,646 7,778 2,376
- ------------ ------------- ------------ ----------------
291,784 149,147 1,432,227 7,066
- ------------ ------------- ------------ ----------------
$ 17,049,842 $ 9,608,229 $ 21,482,056 $ 855,454
============ ============= ============= ================
$ 11,676,428 $ 7,927,045 $ 19,576,526 $ 1,135,659
21,989 28,047 60,982 2,303
7,225 304,054 (819,365) (289,583)
5,344,200 1,349,083 2,663,913 7,075
- ------------- ------------ -------------- ----------------
$ 17,049,842 $ 9,608,229 $ 21,482,056 $ 855,454
============= ============ ============= ===============
653,663 720,217 1,571,580 85,128
============= ============ ============= ===============
$ 26.08 $ 13.34 $ 13.67 $ 10.05
============= ============ ============= ===============
67
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
NET INVESTMENT INCOME:
Income:
Dividends..................................................................
Foreign tax withheld on dividends..........................................
Net dividends..............................................................
Interest and other.........................................................
Total Income............................................................
Expenses:
Management fees............................................................
Transfer agent fees and expenses...........................................
Accounting service fees and expenses.......................................
Legal and professional fees................................................
Custodian fees.............................................................
Shareholder reporting .....................................................
Registration fees..........................................................
Trustee's fees and expenses................................................
Amortization of organizational costs.......................................
Miscellaneous..............................................................
Total expenses before reductions..........................................
Short-term trading fee ...................................................
Reimbursed fees and expenses..............................................
Net Expenses...........................................................
NET INVESTMENT INCOME (LOSS)................................................
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss)from:
Securities.................................................................
Foreign currency transactions..............................................
Net realized gain (loss)................................................
Net change in unrealized appreciation (depreciation) of:
Investments................................................................
Other assets and liabilities denominated in foreign currencies.............
Net change in unrealized appreciation (depreciation)....................
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.......................
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
68
<PAGE>
U.S. U.S. GLOBAL U.S. CHINA REGION
GOLD SHARES RESOURCES WORLD GOLD OPPORTUNITY
FUND FUND FUND FUND
- -------------- ----------- ------------ ------------
$ 2,847,147 $ 197,878 $ 513,612 $ 245,201
-- (8,341) (26,576) --
- -------------- ----------- ------------ -----------
2,847,147 189,537 487,036 245,201
956,160 53,716 432,071 96,771
- -------------- ----------- ------------ -----------
3,803,307 243,253 919,107 341,972
- -------------- ----------- ------------ -----------
658,528 128,066 1,265,177 135,335
644,662 104,809 419,521 93,939
46,567 19,454 66,522 23,868
34,667 11,269 53,842 8,303
34,741 6,932 6,170 (12,078)
72,472 11,409 39,934 7,373
19,122 13,500 19,713 8,232
11,540 1,647 17,026 1,348
-- -- -- 1,458
26,770 9,662 19,067 8,102
- -------------- ----------- ------------ -----------
1,549,069 306,748 1,906,972 275,880
-- (5,641) -- --
-- -- -- (28,469)
- -------------- ----------- ------------ -----------
1,549,069 301,107 1,906,972 247,411
- -------------- ----------- ------------ -----------
2,254,238 (57,854) (987,865) 94,561
- -------------- ----------- ------------ -----------
(12,301,468) 632,732 5,952,043 (84,470)
(3,030) 1,745 4,719 (2,225)
- -------------- ----------- ------------ -----------
(12,304,498) 634,477 5,956,762 (86,695)
- -------------- ----------- ------------ -----------
(17,730,531) 2,975,390 (15,588,700) 3,648,219
(31,395) (2,864) (41,464) 7,092
- -------------- ----------- ------------ -----------
(17,761,926) 2,972,526 (15,630,164) 3,655,311
- -------------- ----------- ------------ -----------
(30,066,424) 3,607,003 (9,673,402) 3,568,616
- -------------- ----------- ------------ -----------
$ (27,812,186) $ 3,549,149 $(10,661,267) $ 3,663,177
============== =========== ============ ===========
69
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
NET INVESTMENT INCOME:
Income:
Interest and other.........................................................
Total Income............................................................
Expenses:
Management fees............................................................
Transfer agent fees and expenses...........................................
Accounting service fees and expenses.......................................
Legal and professional fees................................................
Custodian fees.............................................................
Shareholder reporting .....................................................
Registration fees..........................................................
Trustee's fees and expenses................................................
Amortization of organizational costs.......................................
Miscellaneous..............................................................
Total expenses before reductions..........................................
Short-term trading fee ...................................................
Reimbursed fees and expenses..............................................
Net Expenses...........................................................
NET INVESTMENT INCOME (LOSS)................................................
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss)from:
Securities.................................................................
Foreign currency transactions..............................................
Net realized gain (loss)................................................
Net change in unrealized appreciation (depreciation) of:
Investments................................................................
Other assets and liabilities denominated in foreign currencies.............
Net change in unrealized appreciation (depreciation)....................
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.......................
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
70
<PAGE>
U.S. U.S.
TREASURY GOVERNMENT UNITED SERVICES
SECURITIES SECURITIES U.S. NEAR-TERM
CASH SAVINGS TAX FREE TAX FREE
FUND FUND FUND FUND
- ------------ ----------- ------------ ----------------
$ 4,334,738 $16,848,010 $ 512,876 $ 158,647
- ------------ ----------- ------------ -----------
4,334,738 16,848,010 512,876 158,647
- ------------ ----------- ------------ -----------
409,029 1,322,749 71,284 15,369
234,348 424,381 21,793 7,567
24,901 74,433 18,766 16,176
33,234 93,356 8,282 5,606
75,751 36,591 4,352 3,025
20,537 35,992 2,059 641
21,070 31,162 11,053 10,346
11,308 41,502 1,288 410
-- -- -- --
-- 67,243 2,545 1,847
- ------------ ----------- ------------ -----------
830,178 2,127,409 141,422 60,987
-- -- -- --
(11,537) (1,336,894) (103,008) (48,515)
- ------------ ----------- ------------ -----------
818,641 790,515 38,414 12,472
- ------------ ----------- ------------ -----------
3,516,097 16,057,495 474,462 146,175
- ------------ ----------- ------------ -----------
-- 4,619 (42,643) 2,945
-- -- -- --
- ------------ ----------- ------------ -----------
-- 4,619 (42,643) 2,945
- ------------ ----------- ------------ -----------
-- -- 370,300 48,725
-- -- -- --
- ------------ ----------- ------------ -----------
-- -- 370,300 48,725
- ------------ ----------- ------------ -----------
-- 4,619 327,657 51,670
- ------------ ----------- ------------ -----------
$ 3,516,097 $16,062,114 $ 802,119 $ 197,845
============ =========== ============ ===========
71
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
NET INVESTMENT INCOME:
Income:
Dividends..................................................................
Interest and other.........................................................
Total Income............................................................
Expenses:
Management fees............................................................
Transfer agent fees and expenses...........................................
Accounting service fees and expenses.......................................
Legal and professional fees................................................
Custodian fees.............................................................
Shareholder reporting .....................................................
Registration fees..........................................................
Trustee's fees and expenses................................................
Amortization of organizational costs.......................................
Miscellaneous..............................................................
Total expenses before reductions..........................................
Short-term trading fee ...................................................
Reimbursed fees and expenses..............................................
Net Expenses...........................................................
NET INVESTMENT INCOME (LOSS)................................................
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities.................................................................
Foreign currency transactions..............................................
Net realized gain (loss)................................................
Net change in unrealized appreciation (depreciation) of:
Investments................................................................
Other assets and liabilities denominated in foreign currencies.............
Net change in unrealized appreciation (depreciation)....................
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.......................
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
72
<PAGE>
U.S. UNITED SERVICES
ALL AMERICAN U.S. U.S. INTERMEDIATE
EQUITY INCOME REAL ESTATE TREASURY
FUND FUND FUND FUND
- ------------ ----------- ------------- -----------------
$ 136,525 $ 208,168 $ 321,506 $ --
50,265 15,636 23,708 86,141
- ------------ ----------- ------------ -----------
186,790 223,804 345,214 86,141
- ------------ ----------- ------------ -----------
59,019 35,188 38,863 7,026
34,155 25,866 25,555 8,675
15,114 14,218 13,486 14,219
7,838 5,925 6,665 4,391
11,341 7,917 4,312 314
5,112 2,546 2,438 840
12,613 12,070 9,673 9,125
1,867 630 600 239
-- -- -- --
1,986 1,871 2,089 1,821
- ------------ ----------- ------------ -----------
149,045 106,231 103,681 46,650
(1,263) (1,890) (3,356) --
(93,555) -- -- (41,031)
- ------------ ----------- ------------ -----------
54,227 104,341 100,325 5,619
- ------------ ----------- ------------ -----------
132,563 119,463 244,889 80,522
- ------------ ----------- ------------ -----------
169,752 721,881 348,155 35,233
-- -- -- --
- ------------ ----------- ------------ -----------
169,752 721,881 348,155 35,233
- ------------ ----------- ------------ -----------
1,287,338 (347,440) 2,164,483 19,998
-- -- -- --
- ------------ ----------- ------------ -----------
1,287,338 (347,440) 2,164,483 19,998
- ------------ ----------- ------------ -----------
1,457,090 374,441 2,512,638 55,231
- ------------ ----------- ------------ -----------
$ 1,589,653 $ 493,904 $ 2,757,527 $ 135,753
============ =========== ============ ===========
73
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED JUNE 30, 1996
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss).................................................
Net realized gain (loss) ....................................................
Net change in unrealized appreciation (depreciation).........................
NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS...........
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.........................................
Distributions in excess of net investment income.............................
Distributions from net capital gains.........................................
TOTAL DISTRIBUTIONS TO SHAREHOLDERS........................................
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold....................................................
Distributions reinvested.....................................................
Paid-in capital portion of short-term trading fee............................
Cost of shares redeemed......................................................
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS......
NET INCREASE (DECREASE) IN NET ASSETS..........................................
NET ASSETS
Beginning of period............................................................
END OF PERIOD [including undistributed net investment income
of $1,803,201, $142,583, $13,474,939, and $78,442, respectively].............
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
74
<PAGE>
U.S. U.S. GLOBAL U.S. CHINA REGION
GOLD SHARES RESOURCES WORLD GOLD OPPORTUNITY
FUND FUND FUND FUND
- ----------------- ---------------- --------------- ----------------
$ 4,175,035 $ (28,103) $ (914,444) $ 235,190
(17,219,457) 3,861,566 12,866,523 (1,474,336)
31,413,759 614,768 52,719,791 851,953
- ---------------- --------------- --------------- ---------------
18,369,337 4,448,231 64,671,870 (387,193)
- ---------------- --------------- --------------- ---------------
4,175,035 -- -- 235,190
198,462 34,009 -- 68,295
-- 238,064 -- --
- ---------------- --------------- --------------- ---------------
4,373,497 272,073 -- 303,485
- ---------------- --------------- --------------- ---------------
4,429,334,712 8,361,170 634,622,523 14,272,348
4,005,509 242,924 -- 293,252
4,213,513 -- 371,046 35,467
- ---------------- --------------- --------------- ---------------
4,437,553,734 8,604,094 634,993,569 14,601,067
4,508,881,568 9,698,547 632,356,617 11,964,951
- ---------------- --------------- --------------- ---------------
(71,327,834) (1,094,453) 2,636,952 2,636,116
- ---------------- --------------- --------------- ---------------
(57,331,994) 3,081,705 67,308,822 1,945,438
211,171,374 21,452,273 181,472,568 19,021,836
- ---------------- --------------- --------------- ---------------
$ 153,839,380 $ 24,533,978 $ 248,781,390 $ 20,967,274
================ =============== =============== ===============
75
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED JUNE 30, 1996
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss).................................................
Net realized gain (loss) ....................................................
Net change in unrealized appreciation (depreciation).........................
NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS...........
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.........................................
Distributions in excess of net investment income.............................
Distributions from net capital gains.........................................
TOTAL DISTRIBUTIONS TO SHAREHOLDERS........................................
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold....................................................
Distributions reinvested.....................................................
Cost of shares redeemed......................................................
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS......
NET INCREASE (DECREASE) IN NET ASSETS..........................................
NET ASSETS
Beginning of period............................................................
END OF PERIOD [including undistributed net investment income
of $52,161, $1,639,506, $34,163, and $32,848, respectively]..................
See accompanying notes to financial statements.
-------------------------------------------------------------------------------
76
<PAGE>
U.S. U.S.
TREASURY GOVERNMENT UNITED SERVICES
SECURITIES SECURITIES U.S. NEAR-TERM
CASH SAVINGS TAX FREE TAX FREE
FUND FUND FUND FUND
- ----------------- ---------------- --------------- ------------------
$ 7,388,094 $ 29,918,820 $ 979,635 $ 306,958
-- (612,482) 47,281 24,495
-- -- (16,415) (72,642)
- --------------- --------------- --------------- ---------------
7,388,094 29,306,338 1,010,501 258,811
- --------------- --------------- --------------- ---------------
7,388,094 29,306,338 942,876 306,958
-- -- -- 4,578
-- -- -- --
- --------------- --------------- --------------- ---------------
7,388,094 29,306,338 942,876 311,536
- --------------- --------------- --------------- ---------------
4,914,474,200 583,224,976 13,085,062 2,764,904
7,356,338 29,287,828 755,742 252,029
- --------------- --------------- --------------- ---------------
4,921,830,538 612,512,804 13,840,804 3,016,933
4,923,359,484 553,476,691 12,572,221 3,547,566
- --------------- --------------- --------------- ---------------
(1,528,946) 59,036,113 1,268,583 (530,633)
- --------------- --------------- --------------- ---------------
(1,528,946) 59,036,113 1,336,208 (583,358)
190,372,667 529,372,450 18,612,795 7,128,152
- --------------- --------------- --------------- ---------------
$ 188,843,721 $ 588,408,563 $ 19,949,003 $ 6,544,794
=============== =============== =============== ===============
77
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED JUNE 30, 1996
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss).................................................
Net realized gain (loss) ....................................................
Net change in unrealized appreciation (depreciation).........................
NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS...........
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.........................................
Distributions in excess of net investment income.............................
Distributions from net capital gains.........................................
Tax return of capital........................................................
TOTAL DISTRIBUTIONS TO SHAREHOLDERS........................................
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold....................................................
Distributions reinvested.....................................................
Cost of shares redeemed......................................................
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS......
NET INCREASE (DECREASE) IN NET ASSETS..........................................
NET ASSETS
Beginning of period............................................................
END OF PERIOD [including undistributed net investment income
of $46,595, $(3,771),$(29,047) and $8,548, respectively].....................
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
78
<PAGE>
U.S. UNITED SERVICES
ALL AMERICAN U.S. U.S. INTERMEDIATE
EQUITY INCOME REAL ESTATE TREASURY
FUND FUND FUND FUND
- --------------- ---------------- ---------------- ------------------
$ 246,841 $ 239,825 $ 311,942 $ 287,082
433,841 1,011,146 417,019 (41,572)
2,192,371 236,929 601,257 (138,719)
- --------------- --------------- --------------- ---------------
2,873,053 1,487,900 1,330,218 106,791
- --------------- --------------- --------------- ---------------
228,060 238,013 297,959 287,082
-- -- -- 3,717
-- 164,479 -- --
-- -- 96,776 --
- --------------- --------------- --------------- ---------------
228,060 402,492 394,735 290,799
- --------------- --------------- --------------- ---------------
6,841,391 5,105,879 6,020,565 3,651,967
196,271 380,195 344,204 240,518
- --------------- --------------- --------------- ---------------
7,037,662 5,486,074 6,364,769 3,892,485
6,392,929 7,103,504 8,249,033 4,643,498
- --------------- --------------- --------------- ---------------
644,733 (1,617,430) (1,884,264) (751,013)
- --------------- --------------- --------------- ---------------
3,289,726 (532,022) (948,781) (935,021)
11,930,553 10,230,045 9,168,795 4,580,411
- --------------- --------------- --------------- ---------------
$ 15,220,279 $ 9,698,023 $ 8,220,014 $ 3,645,390
=============== =============== =============== ===============
79
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss).................................................
Net realized gain (loss) ....................................................
Net change in unrealized appreciation (depreciation).........................
NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS...........
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.........................................
Distributions in excess of net investment income.............................
Distributions from net capital gains.........................................
TOTAL DISTRIBUTIONS TO SHAREHOLDERS........................................
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold....................................................
Distributions reinvested.....................................................
Paid-in capital portion of short-term trading fee............................
Cost of shares redeemed......................................................
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS......
NET INCREASE (DECREASE) IN NET ASSETS..........................................
NET ASSETS
Beginning of period............................................................
END OF PERIOD [including undistributed net investment income
of $782,655, $(61,641), $(574,146), and $80,170, respectively]...............
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
80
<PAGE>
U.S. U.S. GLOBAL U.S. CHINA REGION
GOLD SHARES RESOURCES WORLD GOLD OPPORTUNITY
FUND FUND FUND FUND
- --------------- --------------- --------------- ---------------
$ 2,254,238 $ (57,854) $ (987,865) $ 94,561
(12,304,498) 634,477 5,956,762 (86,695)
(17,761,926) 2,972,526 (15,630,164) 3,655,311
- --------------- --------------- --------------- ---------------
(27,812,186) 3,549,149 (10,661,267) 3,663,177
- --------------- --------------- --------------- ---------------
(3,274,784) (146,370) (13,061,220) (92,833)
-- -- -- --
-- (3,293,232) -- --
- --------------- --------------- --------------- ---------------
(3,274,784) (3,439,602) (13,061,220) (92,833)
- --------------- --------------- --------------- ---------------
2,027,095,681 10,249,628 282,469,004 14,680,525
3,062,003 3,089,881 12,024,924 89,879
4,293,438 -- 412,128 60,293
- --------------- --------------- --------------- ---------------
2,034,451,122 13,339,509 294,906,056 14,830,697
(2,036,645,599) (8,915,969) (284,260,233) (9,072,884)
- --------------- --------------- --------------- ---------------
(2,194,477) 4,423,540 10,645,823 5,757,813
- --------------- --------------- --------------- ---------------
(33,281,447) 4,533,087 (13,076,664) 9,328,157
153,839,380 24,533,978 248,781,390 20,967,274
- --------------- --------------- --------------- ---------------
$ 120,557,933 $ 29,067,065 $ 235,704,726 $ 30,295,431
=============== =============== =============== ===============
81
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss).................................................
Net realized gain (loss) ....................................................
Net change in unrealized appreciation (depreciation).........................
NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS...........
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.........................................
Distributions in excess of net investment income.............................
Distributions from net capital gains.........................................
TOTAL DISTRIBUTIONS TO SHAREHOLDERS........................................
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold....................................................
Distributions reinvested.....................................................
Paid-in capital portion of short-term trading fee............................
Cost of shares redeemed......................................................
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS......
NET INCREASE (DECREASE) IN NET ASSETS..........................................
NET ASSETS
Beginning of period............................................................
END OF PERIOD [including undistributed net investment income
of $52,161, $1,639,764, $37,188, and $32,914, respectively]..................
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
82
<PAGE>
U.S. U.S.
TREASURY GOVERNMENT UNITED SERVICES
SECURITIES SECURITIES U.S. NEAR-TERM
CASH SAVINGS TAX FREE TAX FREE
FUND FUND FUND FUND
- --------------- --------------- --------------- ---------------
$ 3,516,097 $ 16,057,495 $ 474,462 $ 146,175
-- 4,619 (42,643) 2,945
-- -- 370,300 48,725
- --------------- --------------- --------------- ---------------
3,516,097 16,062,114 802,119 197,845
- --------------- --------------- --------------- ---------------
(3,516,097) (16,057,495) (471,437) (146,109)
- --------------- --------------- --------------- ---------------
-- (4,619) -- --
- --------------- --------------- --------------- ---------------
(3,516,097) (16,062,114) (471,437) (146,109)
- --------------- --------------- --------------- ---------------
2,372,882,483 309,297,198 5,730,609 1,780,940
3,516,097 16,062,114 382,515 114,690
-- -- -- --
- --------------- --------------- --------------- ---------------
2,376,398,580 325,359,312 6,113,124 1,895,630
(2,370,290,567) (264,732,373) (7,147,545) (2,300,316)
- --------------- --------------- --------------- ---------------
6,108,013 60,626,939 (1,034,421) (404,686)
- --------------- --------------- --------------- ---------------
6,108,013 60,626,939 (703,739) (352,950)
188,843,721 588,408,563 19,949,003 6,544,794
- --------------- --------------- --------------- ---------------
$ 194,951,734 $ 649,035,502 $ 19,245,264 $ 6,191,844
=============== =============== =============== ===============
83
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
FOR THE SIX MONTHS ENDED DECEMBER 31, 1996
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss).................................................
Net realized gain (loss) ....................................................
Net change in unrealized appreciation (depreciation).........................
NET INCREASE (DECREASE) IN NET ASSETS FROM INVESTMENT OPERATIONS...........
DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income.........................................
Distributions in excess of net investment income.............................
Distributions from net capital gains.........................................
TOTAL DISTRIBUTIONS TO SHAREHOLDERS........................................
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold....................................................
Distributions reinvested.....................................................
Paid-in capital portion of short-term trading fee............................
Cost of shares redeemed......................................................
NET INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL SHARE TRANSACTIONS......
NET INCREASE (DECREASE) IN NET ASSETS..........................................
NET ASSETS
Beginning of period............................................................
END OF PERIOD [including undistributed net investment income
of $21,989, $(28,047), $60,982, and $2,303, respectively]....................
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
84
<PAGE>
U.S. UNITED SERVICES
ALL AMERICAN U.S. U.S. INTERMEDIATE
EQUITY INCOME REAL ESTATE TREASURY
FUND FUND FUND FUND
- --------------- --------------- --------------- ---------------
$ 132,563 $ 119,463 $ 244,889 $ 80,522
169,752 721,881 348,155 35,233
1,287,338 (347,440) 2,164,483 19,998
- --------------- --------------- --------------- ---------------
1,589,653 493,904 2,757,527 135,753
- --------------- --------------- --------------- ---------------
(157,169) (87,645) (154,860) (86,767)
-- -- -- --
(511,031) (1,400,475) -- --
- --------------- --------------- --------------- ---------------
(668,200) (1,488,119) (154,860) (86,767)
- --------------- --------------- --------------- ---------------
3,683,690 1,293,665 18,220,762 414,779
642,215 1,393,225 147,038 74,368
-- -- -- --
- --------------- --------------- --------------- ---------------
4,325,905 2,686,890 18,367,800 489,147
(3,417,795) (1,782,469) (7,708,425) (3,328,069)
- --------------- --------------- --------------- ---------------
908,110 904,421 10,659,375 (2,838,922)
- --------------- --------------- --------------- ---------------
1,829,563 (89,794) 13,262,042 (2,789,936)
15,220,279 9,698,023 8,220,014 3,645,390
- --------------- --------------- --------------- ---------------
$ 17,049,842 $ 9,608,229 $ 21,482,056 $ 855,454
=============== =============== =============== ===============
85
<PAGE>
U.S. GLOBAL INVESTORS
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
NOTE 1 SIGNIFICANT ACCOUNTING POLICIES
United Services Funds changed its name, effective February 1 1997, to U.S.
Global Investors Funds. U.S. Global Investors Funds (the "Trust"), consisting of
twelve separate funds (the "Funds"), is organized as a Massachusetts business
trust. Each Fund is a diversified, open-end management investment company
registered under the Investment Company Act of 1940. The U.S./United Services
prefix is omitted throughout the notes to financial statements.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
policies are in conformity with generally accepted accounting principles.
A. SECURITY VALUATIONS
Investments traded on national or international securities exchanges and
NASDAQ quoted securities are valued at the last sales price reported by the
security's primary exchange at the time of daily valuation. Domestically
listed and NASDAQ securities for which no sale was reported, over-the-counter
securities and corporate bonds are valued at the mean between the last
reported bid and asked prices, certain of which are obtained from one or more
dealers that make markets in the securities. Short-term investments with
effective maturities of sixty days or less at the date of purchase and
investments of Treasury Securities Cash and Government Securities Savings
Funds are valued at amortized cost, which approximates market value.
Municipal securities and long-term U. S. Government obligations are valued by
an independent pricing service which uses a system based on such factors as
credit rating, maturity, coupon and type of security to determine fair value.
B. SECURITIES VALUED BY THE TRUSTEES
Securities for which market quotations are not readily available and
securities which are subject to legal or contractual restrictions on resale
are valued at fair value as determined by the Trustees. Factors used by the
Trustees in determining fair value include: the quality of the underlying
property based upon review of independent geological studies; the financial
status and other operational and market factors affecting the issuer; the
nature and duration of restrictions; volume of trading of the securities;
market values of unrestricted shares of the same or similar class; the
Manager's judgement regarding the market and past experience of the issuer;
the quality of the issuer's management; the extent of the Trust's investments
in the trading securities of the issuer; and other relevant matters.
C. SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on trade date. Certain transaction
costs are capitalized and included in the cost of securities. Realized gains
and losses from security transactions are determined on an identified cost
basis. Dividend income is recorded on the ex-dividend date or, in the case of
certain foreign securities as soon as the information becomes available to
the Funds. Interest income, accretion of discount and amortization of premium
are recorded on an accrual basis.
- --------------------------------------------------------------------------------
86
<PAGE>
U.S. GLOBAL INVESTORS
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
The Funds may purchase securities on a when-issued or delayed delivery basis,
whereby liquid assets equal to the obligation are segregated on the Fund's
books until settlement. The investment is accounted for in the same manner as
marketable portfolio securities.
D. REPURCHASE AGREEMENTS
The Funds may enter into repurchase agreements with recognized financial
institutions or registered broker/dealers and, in all instances, hold
underlying securities with a value exceeding the total repurchase price,
including accrued interest. The Funds utilize a joint repurchase agreement
account where uninvested cash is collectively invested in repurchase
agreements for which each Fund has its respective percentage of an undivided
interest in the account.
E. OPTIONS
Certain Funds may write or purchase option securities. The option premium is
the basis for recognition of unrealized or realized gain or loss on the
option. The cost of securities acquired or the proceeds from securities sold
through the exercise of the option is adjusted by the amount of the premium.
F. FOREIGN CURRENCY TRANSACTIONS
All or a significant portion of the assets of the Gold Shares, Global
Resources, World Gold and China Region Opportunity Funds may be invested in
securities of foreign issuers. The accounting records of each of these Funds
are maintained in U.S. dollars. At each net asset determination date the
value of assets and liabilities denominated in foreign currencies are
translated into U. S. Dollars using the current exchange rate. Security
transactions, income and expenses are converted at the prevailing rate of
exchange on the date of the event. The effect of changes in foreign exchange
rates on foreign denominated securities is included with the net realized and
unrealized gain or loss on securities. Other foreign currency gains or losses
are reported separately.
G. FEDERAL INCOME TAXES
The Funds intend to continue to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of their taxable income to shareholders. Accordingly, no provision for
federal income taxes is required.
H. ORGANIZATIONAL COSTS
Costs incurred in organizing the Funds have been capitalized and are being
amortized on a straight-line basis over a 60 month period.
I. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
Dividends and distributions to shareholders are recorded by the Funds on the
ex-dividend date. Distributions are determined in accordance with income tax
regulations which may differ from generally accepted accounting principles.
Accordingly, periodic reclassifications are made within the Funds' capital
accounts to reflect income and gains available for distribution under income
tax regulations.
- --------------------------------------------------------------------------------
87
<PAGE>
U.S. GLOBAL INVESTORS
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
The Funds make distributions at least annually. The Treasury Securities Cash
and Government Securities Savings Funds accrue dividends, including
short-term gains or losses, on a daily basis with payment monthly. Tax Free,
Near-Term Tax Free and Intermediate Treasury pay monthly dividends. All
American Equity and Income pay quarterly dividends.
J. EXPENSES
Each fund bears expenses incurred specifically on its behalf as well as an
allocation of Trust level expenses. Short-term trading fees, which are
collected from temporary investors in the funds, are applied as a reduction
to expenses to the extent of such related cost; any excess is credited as
paid-in capital. Expense offset arrangements have been made with the Funds'
custodian whereby the custodian fees are paid indirectly by credits earned on
the Funds' cash balances. Such deposit arrangement is an alternative to
overnight investments.
K. USE OF ESTIMATES IN FINANCIAL STATEMENT PREPARATION
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 financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
NOTE 2 RELATED PARTY TRANSACTIONS
U.S. Global Investors, Inc. (the "Manager") , under an investment advisory
agreement with the Trust in effect through October 30, 1997, furnishes
management and investment advisory services and, subject to the supervision
of the Trustees, directs the investments of each Fund in accordance with its
investment objective, policies and limitations. The Manager also furnishes
all necessary office facilities, business equipment and personnel for
administering the affairs of the Trust. Frank E. Holmes, a Trustee of the
Funds, is a controlling owner of the Manager.
For the services of the Manager, each Fund pays a management fee based upon
its net assets. Fees are accrued daily and paid monthly. The contractual
management fee for each Fund is:
FUND ANNUAL PERCENTAGE OF AVERAGE DAILY NET ASSETS
- ------------------------------ ---------------------------------------------
Gold Shares, All American .75% of the first $250,000,000 and
Equity, Income, Tax Free .50% of the excess
and Real Estate
Treasury Securities Cash and .50% of the first $250,000,000 and
Government Securities Savings .375% of the excess
World Gold and Global Resources 1% of the first $250,000,000 and
.50% of the excess
Near-Term Tax Free and .50%
Intermediate Treasury
China Region Opportunity 1.25%
- --------------------------------------------------------------------------------
88
<PAGE>
U.S. GLOBAL INVESTORS
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
The Manager has voluntarily guaranteed that it will reimburse specific funds so
that their total operating expenses will not exceed certain annual percentages
of average net assets until June 30, 1997, extendable at the Manager's
discretion. The expenses are limited as follows: China Region Opportunity at
2.25%, All American Equity at .70% and Tax Free, Government Securities Savings,
Near-Term Tax Free and Intermediate Treasury Funds at .40% each.
United Shareholder Services, Inc. ("USSI"), a wholly-owned subsidiary of the
Manager, is transfer agent and accounting service agent for the Funds. Each Fund
pays an annual fee based on number of shareholder accounts for transfer agency
services. Certain account fees are paid directly by shareholders to the transfer
agent, which, in turn, reduces its charge to the Funds. For maintaining the
books and records of the Funds and calculating their daily net asset values,
USSI is paid a fee based upon the level of Fund net assets subject to a minimum
fee. Additionally, the Manager is reimbursed certain costs for in-house legal
services pertaining to each Fund.
During the period ended December 31, 1996, A & B Mailers, Inc., a wholly-owned
subsidiary of the Manager, was paid $35,784 for mailing services provided to the
Funds.
The five independent Trustees receive $24,000 annually as compensation for
serving on the Board, plus $2,000 per meeting. The Chairman and members of
special committees receive additional compensation ranging from $1,500 to
$14,000.
NOTE 3 INVESTMENT ACTIVITY
Purchases and sales of investments for the period ended December 31, 1996 are
summarized as follows:
<TABLE>
<CAPTION>
U.S. GOVERNMENT OBLIGATIONS OTHER SECURITIES
(OR U.S. GOVERNMENT (EXCLUDING SHORT-TERM
GUARANTEED OBLIGATIONS) SECURITIES)
------------------------------ -------------------------------
FUND PURCHASES SALES PURCHASES SALES
- ------------------------ -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Gold Shares ............ $ 4,379,256 $ 4,405,453 $ 21,228,757 $ 48,910,406
Global Resources ....... 495,952 498,163 8,899,795 5,125,160
World Gold ............. 4,379,256 4,404,993 48,421,351 45,919,178
China Region Opportunity -- -- 3,334,602 2,478,495
Treasury Securities Cash 180,676,326 185,113,567 -- --
Government Sec. Savings 4,868,619,938 4,839,063,305 -- --
Tax Free ............... -- -- 6,641,191 8,534,027
Near-Term Tax Free ..... -- -- 865,631 938,851
All American Equity .... -- -- 840,328 534,788
Income ................. -- -- 4,035,895 3,888,212
Real Estate ............ -- -- 11,893,760 3,672,760
Intermediate Treasury .. -- 2,754,555 -- --
</TABLE>
- --------------------------------------------------------------------------------
89
<PAGE>
U.S. GLOBAL INVESTORS
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
The following table presents the federal income tax basis of the cost of
securities owned at December 31, 1996 and the tax basis components of net
unrealized appreciation or depreciation:
<TABLE>
<CAPTION>
GROSS GROSS NET UNREALIZED
UNREALIZED UNREALIZED APPRECIATION AGGREGATE
FUND APPRECIATION DEPRECIATION (DEPRECIATION) COST
- ----------------------------- -------------- --------------- -------------- --------------
<S> <C> <C> <C> <C>
Gold Shares ................. $ 23,795,438 $ (51,419,390) $ (27,623,952) $ 198,560,154
Global Resources ............ 6,803,489 (2,370,254) 4,433,235 25,376,053
World Gold .................. 98,393,249 (18,339,319) 80,053,930 167,458,553
China Region Opportunity .... 4,607,970 (2,242,121) 2,365,849 27,836,347
Treasury Securities Cash .... -- -- -- 187,793,666
Government Securities Savings -- -- -- 642,806,067
Tax Free .................... 222,246 (39,136) 183,110 18,772,224
Near-Term Tax Free .......... 26,324 (11,065) 15,259 6,027,748
All American Equity ......... 5,532,970 (188,770) 5,344,200 11,939,659
Income ...................... 1,514,720 (165,637) 1,349,083 8,290,295
Real Estate ................. 2,739,153 (75,240) 2,663,913 17,606,587
Intermediate Treasury ....... 7,075 -- 7,075 835,629
</TABLE>
Net realized capital loss carryforwards, for federal income tax purposes, may be
utilized to offset current or future capital gains until expiration. In
accordance with tax rules, capital losses incurred after October 31, 1995 are
deemed to have occurred on July 1, 1996. The carryforwards, expiration dates and
post October losses for each Fund as of June 30, 1996, are as follows:
<TABLE>
<CAPTION>
EXPIRATION LOSS POST
FUND DATES CARRYFORWARDS OCTOBER
- -------------------------------- --------- ------------- ------------
<S> <C> <C> <C>
Gold Shares .................... 1997-2004 $143,231,468 $ 4,178,303
World Gold ..................... 1998-2001 44,468,101
China Region Opportunity ....... 2003-2004 4,488,775 715,982
Government Securities
Savings ................... 1997-2004 1,740,117 418,639
Tax Free ....................... 2003-2004 135,995 10,072
Near-Term Tax Free ............. 2003-2004 239,474
Real Estate .................... 1999-2004 1,249,422
Intermediate Treasury .......... 2003-2004 206,333 118,483
</TABLE>
- --------------------------------------------------------------------------------
90
<PAGE>
U.S. GLOBAL INVESTORS
Notes to Financial Statements
December 31, 1996
- --------------------------------------------------------------------------------
NOTE 4 CAPITAL SHARE ACTIVITY
Each Fund has an unlimited number of shares authorized with no par value. The
following is a summary of capital share activity for the periods indicated:
SIX MONTHS ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
SHARES SHARES SHARES NET SHARE
FUND SOLD REINVESTED REDEEMED ACTIVITY
- ----------------------------- ------------- ---------- ------------- -----------
<S> <C> <C> <C> <C>
Gold Shares ................. 1,197,530,035 2,187,145 1,197,634,128 2,083,052
Global Resources ............ 1,357,491 436,424 1,200,283 593,632
World Gold .................. 13,269,586 627,606 13,376,671 520,521
China Region Opportunity .... 2,065,222 14,132 1,321,567 757,787
Treasury Securities Cash .... 2,372,882,483 3,516,097 2,370,290,567 6,108,013
Government Securities Savings 309,297,198 16,062,114 264,732,373 60,626,939
Tax Free .................... 489,142 32,669 610,578 (88,767)
Near-Term Tax Free .......... 170,304 12,678 220,041 (37,059)
All American Equity ......... 144,070 24,710 135,156 33,624
Income ...................... 87,120 104,083 120,007 71,196
Real Estate ................. 1,444,565 10,756 632,869 822,452
Intermediate Treasury ....... 41,088 7,361 324,984 (276,535)
</TABLE>
YEAR ENDED JUNE 30, 1996
<TABLE>
<CAPTION>
SHARES SHARES SHARES NET SHARE
FUND SOLD REINVESTED REDEEMED ACTIVITY
- ----------------------------- ------------- ---------- ------------- -----------
<S> <C> <C> <C> <C>
Gold Shares ................. 2,035,370,163 2,107,294 2,052,468,648 (14,991,191)
Global Resources ............ 1,290,538 40,623 1,540,513 (209,352)
World Gold .................. 33,665,564 -0- 33,367,372 298,192
China Region Opportunity .... 2,218,121 45,974 1,856,024 408,071
Treasury Securities Cash .... 4,914,471,458 7,356,337 4,923,359,484 (1,531,689)
Government Securities Savings 583,226,089 29,287,828 553,476,691 59,037,226
Tax Free .................... 1,120,663 64,582 1,074,406 110,839
Near-Term Tax Free .......... 263,905 24,065 338,499 (50,529)
All American Equity ......... 302,225 8,612 285,028 25,809
Income ...................... 355,655 26,224 499,325 (117,446)
Real Estate ................. 563,985 31,601 782,228 (186,642)
Intermediate Treasury ....... 341,329 22,776 439,792 (75,687)
</TABLE>
NOTE 5 RISKS OF CONCENTRATIONS
The Gold Shares Fund has significant investments in South African issuers. The
unstable political and social condition in South Africa may have disruptive
effects on the market prices of investments held by the Fund.
The China Region Opportunity Fund may have elements of risk, not typically
associated with investments in the United States, due to investments in foreign
issuers located in a specific country or region. Such investments may subject
the Fund to additional risks resulting from future political or economic
conditions and the possible imposition of adverse governmental laws or currency
exchange restrictions affecting such country or region.
- --------------------------------------------------------------------------------
91
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
<TABLE>
<CAPTION>
U.S. GOLD SHARES FUND
-------------------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992
----------- --------- --------- --------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ....... $ 1.84 $ 2.14 $ 2.48 $ 2.49 $ 2.21 $ 3.57
----------- --------- --------- ---------- ----------- ----------
INVESTMENT ACTIVITIES
Net investment income ...................... .02 .05 .06 .07 .04 .07
Net realized and unrealized gain (loss) .... (.42) (.30) (.33) (.02) .29 (1.35)
----------- --------- --------- --------- ----------- ----------
Total from investment activities ........... (.40) (.25) (.27) .05 .33 (1.28)
----------- --------- --------- --------- ----------- ----------
DISTRIBUTIONS
From net investment income ................. (.03) (.05) (.06) (.06) (.04) (.08)
In excess of net investment income ......... -- -- (.01) -- (.01) --
From net realized gains .................... -- -- -- -- -- --
----------- --------- ----------- ---------- ----------- ----------
Total distributions ........................ (.03) (.05) (.07) (.06) (.05) (.08)
----------- --------- ----------- ---------- ----------- ----------
NET ASSET VALUE, end of period ............. $ 1.41 $ 1.84 $ 2.14 $ 2.48 $ 2.49 $ 2.21
=========== ========== =========== ========== =========== ==========
TOTAL RETURN (excluding account fees) ...... (21.73)% (11.73)% (11.21)% 1.85% 16.70% (36.45)%
Ratios to Average Net Assets (a):
Net investment income ...................... 2.56% 1.81% 2.47% 2.61% 2.58% 2.52%
Total expenses ............................. 1.76% 1.58% 1.47% 1.52% 1.95% 1.64%
Expenses reimbursed or offset .............. -- (.04)% (.05)% (.06)% (.07)% (.10)%
Net expenses ............................... 1.76% 1.54% 1.42% 1.46% 1.88% 1.54%
Portfolio turnover rate .................... 11% 24% 33% 29% 20% 25%
Average commission rate paid ............... $ .0416 $ .0523 N/A N/A N/A N/A
Net assets, end of period (in thousands) ... $120,558 $153,839 $211,171 $263,827 $299,808 $187,937
<FN>
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
92
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
<TABLE>
<CAPTION>
U.S. GLOBAL RESOURCES FUND
------------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992
----------- --------- ----------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ............ $ 6.98 $ 5.76 $ 5.74 $ 6.10 $ 5.78 $ 5.76
----------- --------- ---------- --------- ---------- ---------
INVESTMENT ACTIVITIES
Net investment income ........................ (.02) (.01) (.03) (.02) .01 .00
Net realized and unrealized gain (loss) ...... 1.06 1.31 .36 (.18) .35 .25
----------- --------- ---------- --------- ---------- ---------
Total from investment activities ................ 1.04 1.30 .33 (.20) .36 .25
----------- --------- ---------- --------- ---------- ---------
DISTRIBUTIONS
From net investment income .................... (.04) -- -- -- (.01) (.07)
In excess of net investment income ............ -- (.01) -- (.01) (.03) --
From net realized gain ........................ (.90) (.07) -- (.15) -- (.16)
In excess of net realized gain ................ -- -- (.31) -- -- --
----------- --------- ---------- --------- ---------- ---------
Total distributions ............................. (.94) (.08) (.31) (.16) (.04) (.23)
----------- --------- ---------- --------- ---------- ---------
NET ASSET VALUE, end of period .................. $ 7.08 $ 6.98 $ 5.76 $ 5.74 $ 6.10 $ 5.78
=========== ========= ========== ========= ========== =========
TOTAL RETURN (excluding account fees) ........... 14.90% 22.80% 5.94% (3.73)% 6.46% 4.31%
Ratios to Average Net Assets (a):
Net investment income ................. (.45)% (.13)% (.60)% (.34)% .17% .61%
Total expenses ........................ 2.40% 2.58% 2.51% 2.44% 2.48% 2.34%
Expenses reimbursed or offset ......... (.04)% (.01)% (.02)% (.01)% (.02)% (.01)%
Net expenses .......................... 2.36% 2.57% 2.49% 2.43% 2.46% 2.33%
Portfolio turnover rate ......................... 23% 117% 50% 58% 120% 55%
Average commission rate paid .................... $ .0129 .0306 N/A N/A N/A N/A
Net assets, end of period (in thousands) ........ $29,067 $ 24,534 $21,452 $21,620 $23,939 $25,384
<FN>
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
93
<PAGE>
<TABLE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
<CAPTION>
U.S. WORLD GOLD FUND
---------------------------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992
------------ ----------- ------------ ------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ....... $ 21.12 $ 15.81 $ 15.63 $ 14.59 $ 9.51 $ 10.04
------------ ----------- ----------- ------------ ----------- ----------
INVESTMENT ACTIVITIES
Net investment income ................... (.08) (.08) (.12) (.09) (.12) (.13)
Net realized and unrealized gain (loss).. (.76) 5.39 .33 1.13 5.20 (.40)
------------ ----------- ----------- ------------ ----------- ----------
Total from investment activities ........... (.84) 5.31 .21 1.04 5.08 (.53)
------------ ----------- ----------- ------------ ----------- ----------
DISTRIBUTIONS
From net investment income ............... (1.11) -- -- -- -- --
In excess of net investment income ....... -- -- (.03) -- -- --
From net realized gains .................. -- -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total distributions ........................ (1.11) -- (.03) -- -- --
------------ ----------- ----------- ----------- ----------- ---------
NET ASSET VALUE, end of period ............. $ 19.17 $ 21.12 $ 15.81 $ 15.63 $ 14.59 $ 9.51
============ =========== =========== =========== =========== ==========
TOTAL RETURN (excluding account fees) ...... (3.98)% 33.59% 1.36% 7.13% 53.58% (5.37)%
Ratios to Average Net Assets (a):
Net investment income ................... (.77)% (.40)% (.66)% (.66)% (1.15)% (1.18)%
Total expenses .......................... 1.48% 1.53% 1.58% 1.57% 2.06% 2.20%
Expenses reimbursed or offset ........... -- (.02)% (.03)% (.04)% (.06)% --
Net expenses ............................ 1.48% 1.51% 1.55% 1.53% 2.00% 2.20%
Portfolio turnover rate .................... .18% 26% 28% 20% 26% 47%
Average commission rate paid ............... $ .0212 $ .0202 N/A N/A N/A N/A
Net assets, end of period (in thousands) ... $235,705 $248,781 $181,473 $202,819 $109,805 $57,942
<FN>
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- -------------------------------------------------------------------------------
94
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
<TABLE>
<CAPTION>
CHINA REGION OPPORTUNITY FUND
-------------------------------------------------------
12/96 1996 1995 1994*
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ..... $ 6.43 $ 6.67 $ 7.75 $ 10.00
---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income ................. .03 .08 .10 .04
Net realized and unrealized gain (loss) 1.11 (.21) (1.09) (2.25)
---------- ---------- ---------- ----------
Total from investment activities ......... 1.14 (.13) (.99) (2.21)
---------- ---------- ---------- ----------
DISTRIBUTIONS
From net investment income ............. (.03) (.08) (.09) (.04)
In excess of net investment income ..... -- (.02) -- --
From net realized gains ................ -- -- -- --
---------- ---------- ---------- ----------
Total distributions ...................... (.03) (.10) (.09) (.04)
---------- ---------- ---------- ----------
NET ASSET VALUE, end of period ........... $ 7.54 $ 6.44 $ 6.67 $ 7.75
========== ========== ========== ==========
TOTAL RETURN (excluding account fees) .... 11.73% (2.07)% (12.79)% (22.11)%
Ratios to Average Net Assets (a):
Net investment income ................. .87% 1.24% 1.53% 1.51%
Total expenses ........................ 2.55% 2.60% 2.51% 3.10%
Expenses reimbursed or offset ......... (.30)% (.45)% (.60)% (1.48)%
Net expenses .......................... 2.25% 2.15% 1.95% 1.62%
Portfolio turnover rate .................. 13% 37% 54% 13%
Average commission rate paid ............. $ .0038 $ .0028 N/A N/A
Net assets, end of period (in thousands) . $30,295 $20,967 $19,022 $7,655
<FN>
*From January 10, 1994 (commencement of operations).
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
95
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
<TABLE>
<CAPTION>
U.S. TREASURY SECURITIES CASH FUND
------------------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992
----------- ----------- ----------- ---------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ------------ ---------- ---------- ---------- -----------
INVESTMENT ACTIVITIES
Net investment income ................. .02 .04 .04 .02 .02 .04
Net realized and unrealized gain (loss) -- -- -- -- -- --
----------- ----------- ---------- ---------- ---------- -----------
Total from investment activities ......... .02 .04 .04 .02 .02 .04
----------- ----------- ---------- ---------- ---------- -----------
DISTRIBUTIONS
From net investment income ............. (.02) (.04) (.04) (.02) (.02) (.04)
From net realized gains ................ -- -- -- -- -- --
----------- ----------- ---------- ---------- ---------- -----------
Total distributions ...................... (.02) (.04) (.04) (.02) (.02) (.04)
----------- ----------- ---------- ---------- ---------- -----------
NET ASSET VALUE, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== ========== ========== ========== ===========
TOTAL RETURN (excluding account fees) .... 2.19% 4.54% 4.43% 2.38% 2.46% 4.33%
Ratios to Average Net Assets (a):
Net investment income .................. 4.30% 4.42% 4.32% 2.38% 2.41% 4.30%
Total expenses ......................... 1.02% 1.03% .97% .96% 1.14% 1.11%
Expenses reimbursed or offset .......... (.02)% -- -- (.03)% (.15)% (.23)%
Net expenses ........................... 1.00% 1.03% .97% .93% .99% .88%
Net assets, end of period (in thousands) . $194,952 $188,844 $190,373 $164,708 $142,888 $150,192
<FN>
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
96
<PAGE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
U.S. GOVERNMENT SECURITIES SAVINGS FUND
----------------------------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992
----------- ----------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ---------- ---------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income ................. .03 .05 .05 .03 .04 .05
Net realized and unrealized gain (loss) -- -- (.01) -- -- --
----------- ---------- ---------- ---------- ---------- ----------
Total from investment activities ......... .03 .05 .04 .03 .04 .05
----------- ---------- ---------- ---------- ---------- ----------
DISTRIBUTIONS
From net investment income ............. (.03) (.05) (.05) (.03) (.04) (.05)
From net realized gains ................ -- -- -- -- -- --
----------- ---------- ---------- ---------- ---------- ----------
Total distributions ...................... (.03) (.05) (.05) (.03) (.04) (.05)
----------- ---------- ---------- ---------- ---------- ----------
Capital contribution by manager .......... -- -- .01 -- -- --
----------- ---------- ---------- ---------- ---------- ----------
NET ASSET VALUE, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ========== ========== ========== ==========
TOTAL RETURN (excluding account fees) .... 2.60% 5.34% 5.09%(b) 3.34% 3.79% 5.30%
Ratios to Average Net Assets (a):
Net investment income ................. 4.94% 5.28% 5.03% 3.34% 3.61% 5.02%
Total expenses ........................ 0.65% .71% .68% .71% .81% 1.04%
Expenses reimbursed or offset ......... (0.41)% (.45)% (.45)% (.55)% (.62)% (1.04)%
Net expenses .......................... 0.24 .26% .23% .16% .19% --
Net assets, end of period (in thousands) . $649,036 $588,409 $529,372 $610,229 $445,418 $117,092
<FN>
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
(b) Total return includes the effect of a voluntary capital contribution by the Manager; otherwise the return would have been
4.19%.
</FN>
- ------------------------------------------------------------------------------------------------------------------------------------
97
</TABLE>
<PAGE>
<TABLE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- ------------------------------------------------------------------------------------------------------------------------------------
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
<CAPTION>
U.S. TAX FREE FUND
---------------------------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992
----------- ---------- --------- --------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ..... $ 11.58 $ 11.55 $ 11.40 $ 12.16 $ 11.69 $ 11.31
---------- ---------- --------- --------- --------- --------
INVESTMENT ACTIVITIES
Net investment income ................. .29 .59 .64 .67 .66 .62
Net realized and unrealized gain (loss) .20 .01 .18 (.56) .47 .59
---------- ---------- --------- --------- --------- --------
Total from investment activities ......... .49 .60 .82 .11 1.13 1.21
---------- ---------- --------- --------- --------- --------
DISTRIBUTIONS
From net investment income - tax exempt (.27) (.55) (.62) (.59) (.63) (.62)
From net investment income - taxable ... (.02) (.02) (.02) (.09) -- --
In excess of net investment income ..... -- -- (.03) (.06) -- --
From net realized gain ................. -- -- -- (.06) (.03) (.21)
In excess of realized gains ............ -- -- -- (.07) -- --
---------- ---------- --------- --------- --------- --------
Total distributions ...................... (.29) (.57) (.67) (.87) (.66) (.83)
---------- ---------- --------- --------- --------- --------
NET ASSET VALUE, end of period ........... $ 11.78 $ 11.58 $ 11.55 $ 11.40 $ 12.16 $ 11.69
========== ========== ========= ========= ========= ========
TOTAL RETURN (excluding account fees) .... 4.27% 5.25% 7.51% .75% 9.97% 11.02%
Ratios to Average Net Assets (a):
Net investment income .................. 4.99% 5.06% 5.62% 5.68% 5.48% 5.38%
Total expenses ......................... 1.48% 1.44% 1.49% 1.46% 1.53% 1.73%
Expenses reimbursed or offset .......... (1.08)% (1.08)% (1.27)% (1.46)% (1.21)% (.46)%
Net expenses ........................... .40% .36% .22% -- .32% 1.27%
Portfolio turnover rate .................. 37% 69% 22% 51% 94% 70%
Net assets, end of period (in thousands) . $19,245 $19,949 $18,613 $18,656 $17,192 $7,790
<FN>
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- -------------------------------------------------------------------------------
98
<PAGE>
<TABLE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
<CAPTION>
UNITED SERVICES NEAR-TERM TAX FREE FUND
-----------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992
--------- ----------- -------- ---------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ..... $ 10.38 $ 10.47 $ 10.39 $ 10.74 $ 10.42 $ 9.88
--------- ---------- -------- ---------- ----------- --------
INVESTMENT ACTIVITIES
Net investment income ................. .25 .47 .45 .43 .61 .62
Net realized and unrealized gain (loss) .08 (.09) .06 (.21) .31 .56
--------- ---------- -------- ---------- ----------- --------
Total from investment activities ......... .33 .38 .51 .22 .92 1.18
--------- ---------- -------- ---------- ----------- --------
DISTRIBUTIONS
From net investment income - tax exempt (.23) (.39) (.43) (.35) (.59) (.62)
From net investment income - taxable ... (.02) (.08) -- (.09) -- --
In excess of net investment income ..... -- -- -- (.07) -- --
From net realized gain ................. -- -- -- -- (.01) (.02)
In excess of realized gains ............ -- -- -- (.06) -- --
--------- ---------- -------- ---------- ----------- --------
Total distributions ...................... (.25) (.47) (.43) (.57) (.60) (.64)
--------- ---------- -------- ---------- ----------- --------
NET ASSET VALUE, end of period ........... $ 10.46 $ 10.38 $ 10.47 $ 10.39 $ 10.74 $ 10.42
========= ========== ======== ========== =========== ========
TOTAL RETURN (excluding account fees) .... 3.21% 3.68% 5.02% 2.03% 9.10% 12.25%
Ratios to Average Net Assets (a):
Net investment income ................. 4.76% 4.41% 4.25% 4.34% 5.73% 6.30%
Total expenses ........................ 1.98% 1.75% 1.62% 1.80% 2.55% 3.02%
Expenses reimbursed or offset ......... (1.58)% (1.23)% (1.42)% (1.80)% (2.55)% (3.02)%
Net expenses .......................... 40% .52% .20% -- -- --
Portfolio turnover rate .................. 15% 83% 53% 69% 140% 45%
Net assets, end of period (in thousands) . $6,192 $6,545 $7,128 $9,190 $1,775 $1,309
<FN>
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
99
<PAGE>
<TABLE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<CAPTION>
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
U.S. ALL AMERICAN EQUITY FUND
---------------------------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992
----------- ---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ..... $ 24.55 $ 20.08 $ 19.52 $ 20.60 $ 18.79 $ 17.12
---------- ---------- ---------- ----------- --------- ----------
INVESTMENT ACTIVITIES
Net investment income ................. .21 .41 .44 .44 .36 .17
Net realized and unrealized gain (loss) 2.37 4.44 2.68 (.75) 1.91 1.62
---------- ---------- ---------- ----------- --------- ----------
Total from investment activities ......... 2.58 4.85 3.12 (.31) 2.27 1.79
---------- ---------- ---------- ------------ --------- ----------
DISTRIBUTIONS
From net investment income ............. (.25) (.38) (.39) (.44) (.37) (.12)
In excess of net investment income ..... -- -- -- (.02) (.09) --
From net realized gain ................. (.80) -- -- (.31) -- --
In excess of net realized gain ......... -- -- (2.17) -- -- --
---------- ---------- ---------- ------------ --------- ----------
Total distributions ...................... (1.05) (.38) (2.56) (.77) (.46) (.12)
---------- ---------- ---------- ------------ --------- ----------
NET ASSET VALUE, end of period ........... $ 26.08 $ 24.55 $ 20.08 $ 19.52 $ 20.60 $ 18.79
========== ========== ========== =========== ========= ==========
TOTAL RETURN (excluding account fees) .... 10.54% 24.31% 17.98% (1.67)% 12.15% 10.51%
Ratios to Average Net Assets (a):
Net investment income .................. 1.69% 1.84% 2.33% 2.11% 1.86% .78%
Total expenses ......................... 1.90% 1.90% 2.17% 2.08% 1.75% 2.03%
Expenses reimbursed or offset .......... (1.21)% (1.22)% (1.47)% (1.47)% (.72)% --
Net expenses ........................... 69% .68% .70% .61% 1.03% 2.03%
Portfolio turnover rate .................. 4% 16% 97% 117% 12% 35%
Average commission rate paid ............. $ .1016 $ .1000 N/A N/A N/A N/A
Net assets, end of period (in thousands) . $17,050 $15,220 $11,931 $10,227 $12,331 $11,825
<FN>
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
100
<PAGE>
<TABLE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<CAPTION>
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
U.S. INCOME FUND
---------------------------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992
--------- --------- --------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ..... $ 14.94 $ 13.35 $ 12.57 $ 14.06 $ 12.65 $ 11.32
--------- --------- -------- -------- --------- --------
INVESTMENT ACTIVITIES
Net investment income .................... .18 .35 .35 .31 .30 .29
Net realized and unrealized gain (loss) .. .62 1.84 .79 (1.06) 2.19 1.40
--------- --------- -------- --------- --------- --------
Total from investment activities ......... .80 2.19 1.14 (.75) 2.49 1.69
--------- --------- -------- --------- --------- --------
DISTRIBUTIONS
From net investment income ............... (.14) (.35) (.34) (.31) (.27) (.35)
In excess of net investment income ....... -- -- -- (.03) -- --
From net realized gain ................... (2.26) (.25) (.02) (.01) (.79) (.01)
In excess of net realized gain ........... -- -- -- (.39) (.02) --
--------- --------- -------- --------- --------- --------
Total distributions ...................... (2.40) (.60) (.36) (.74) (1.08) (.36)
--------- --------- -------- --------- --------- --------
NET ASSET VALUE, end of period ........... $ 13.34 $ 14.94 $ 13.35 $ 12.57 $ 14.06 $ 12.65
========= ========= ======== ========= ========= ========
TOTAL RETURN (excluding account fees) .... 5.40% 16.60% 9.31% (5.83)% 20.68% 15.02%
Ratios to Average Net Assets (a):
Net investment income .................... 2.52% 2.45% 2.59% 2.27% 2.34% 2.47%
Total expenses ........................... 2.24% 2.10% 2.01% 1.79% 1.88% 1.95%
Expenses reimbursed or offset ............ (.04)% (.02)% (.03)% (.05)% (.05)% --
Net expenses ............................. 2.20% 2.08% 1.98% 1.74% 1.83% 1.95%
Portfolio turnover rate .................. 43% 51% 7% 7% 44% 76%
Average commission rate paid ............. $ .0982 $ .0941 N/A N/A N/A N/A
Net assets, end of period (in thousands) . $9,608 $9,698 $10,230 $11,865 $11,009 $7,845
<FN>
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
101
<PAGE>
<TABLE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<CAPTION>
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
U.S. REAL ESTATE FUND
---------------------------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992
---------- --------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period .... $ 10.97 $ 9.80 $ 9.86 $ 10.96 $ 10.17 $ 8.83
---------- --------- --------- ---------- ---------- ----------
INVESTMENT ACTIVITIES
Net investment income ................. .19 .42 .23 .22 .17 .29
Net realized and unrealized gain (loss) 2.62 1.27 (.13) (1.05) .79 1.38
---------- --------- --------- ---------- ---------- ----------
Total from investment activities ........ 2.81 1.69 .10 (.83) .96 1.67
---------- --------- --------- ---------- ---------- ----------
DISTRIBUTIONS
From net investment income ............ (.11) (.39) (.16) (.22) (.17) (.33)
In excess of net investment income .... -- -- -- (.02) -- --
From net realized gain ................ -- -- -- -- -- --
Tax return of capital distributions ... -- (.13) -- (.03) -- --
---------- --------- --------- ---------- ---------- ----------
Total distributions ..................... (.11) (.52) (.16) (.27) (.17) (.33)
---------- --------- --------- ---------- ---------- ----------
NET ASSET VALUE, end of period .......... $ 13.67 $ 10.97 $ 9.80 $ 9.86 $ 10.96 $ 10.17
========== ========= ========= ========== ========== ==========
TOTAL RETURN (excluding account fees) ... 26.44% 17.34% 1.09% (7.70)% 9.45% 18.70%
Ratios to Average Net Assets (a):
Net investment income ................. 4.74% 3.63% 2.22% 1.96% 1.55% 3.17%
Total expenses ........................ 2.01% 2.27% 1.95% 1.62% 1.42% 1.63%
Expenses reimbursed or offset ......... (.07)% (.01)% (.03)% (.03)% (.02)% --
Net expenses .......................... 1.94% 2.26% 1.92% 1.59% 1.40% 1.63%
Portfolio turnover rate ................. 35% 108% 48% 145% 187% 103%
Average commission rate paid ............ $ .0858 $ .0925 N/A N/A N/A N/A
Net assets, end of period (in thousands) $21,482 $8,220 $9,169 $14,597 $19,780 $21,514
<FN>
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
102
<PAGE>
<TABLE>
U.S. GLOBAL INVESTORS FUNDS
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
<CAPTION>
For a capital share outstanding during the six months ended
December 31, 1996 (unaudited) and each year ended June 30,
UNITED SERVICES INTERMEDIATE TREASURY FUND
---------------------------------------------------------------------------------------
12/96 1996 1995 1994 1993 1992*
------------- ------------- ------------- ------------- ------------- -----------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, beginning of period ..... $ 10.08 $ 10.47 $ 10.16 $ 11.21 $ 10.26 $ 10.00
------------- ------------- ------------- ------------- ------------- ------------
INVESTMENT ACTIVITIES
Net investment income .................. .43 .67 .66 .64 .60 .05
Net realized and unrealized gain (loss) (.03) (.39) .27 (.91) .90 .26
------------- ------------- ------------- ------------- ------------- ------------
Total from investment activities ......... (.40) .28 .93 (.27) 1.50 .31
------------- ------------- ------------- ------------- ------------- ------------
DISTRIBUTIONS
From net investment income ............. (.43) (.67) (.62) (.64) (.49) (.05)
In excess of net investment income ..... -- -- -- (.12) (.02) --
From net realized gain ................. -- -- -- -- (.04) --
Tax return of capital distributions .... -- -- -- (.02) -- --
------------- ------------- ------------- ------------- ------------- ------------
Total distributions ...................... (.43) (.67) (.62) (.78) (.55) (.05)
------------- ------------- ------------- ------------- ------------- ------------
NET ASSET VALUE, end of period ........... $ 10.05 $ 10.08 $ 10.47 $ 10.16 $ 11.21 $ 10.26
============= ============= ============= ============= ============= ============
TOTAL RETURN (excluding account fees) .... 4.01% 2.48% 9.62% (2.68)% 14.96% 22.49%
Ratios to Average Net Assets (a):
Net investment income .................. 5.68% 6.15% 6.49% 5.99% 5.44% 6.14%
Total expenses ......................... 3.29% 2.36% 2.25% 2.18% 2.20% 3.34%
Expenses reimbursed or offset .......... (2.89)% (1.93)% (2.05)% (2.18)% (1.56)% (2.68)%
Net expenses ........................... 40% .43% .20% -- .64% .66%
Portfolio turnover rate .................. -- 595% 152% 93% 207% 554%
Net assets, end of period (in thousands) . $ 855 $ 3,645 $ 4,580 $ 4,340 $ 4,581 $ 1,078
<FN>
*From May 8, 1992 (commencement of operations).
(a) Ratios are annualized for periods of less than one year. Expenses reimbursed or offset reflect reductions to total expenses, as
discussed in the notes to the financial statements. These amounts would decrease the net investment income ratio had such
reductions not occurred.
</FN>
</TABLE>
- --------------------------------------------------------------------------------
103
<PAGE>
[INSERT: POSTCARD SIDE 1]
DISCOVER OUR
STAR FUNDS
U.S. Global Investors' stars
were shining bright in 1996.
The following funds received
top honors from Morningstar.
[GRAPHIC: PICTURE OF THE COVER OF THE U.S. REAL ESTATE FUND]
*****
U.S. REAL ESTATE FUND
Invests for growth and income in REITs and other
real estate stocks. Can enhance any portfolio.
[GRAPHIC: PICTURE OF THE COVER OF THE U.S. GLOBAL RESOURCES FUND]
*****
U.S. GLOBAL RESOURCES FUND
Invests for growth in the suppliers of natural
resources of all kinds.
[GRAPHIC: PICTURE OF THE COVER OF THE UNITED SERVICES NEAR-TERM TAX FREE FUND]
*****
UNITED SERVICES NEAR-TERM TAX FREE
Invests in investment-grade municipal bonds and
provides monthly tax-free dividends.
[GRAPHIC: PICTURE OF THE COVER OF THE U.S. TAX FREE FUND]
*****
U.S. TAX FREE FUND
Invests for a high level of current income exempt from federal
income taxation. A great investment for reducing your tax bill.
[GRAPHIC: PICTURE OF THE COVER OF THE U.S. ALL AMERICAN EQUITY FUND]
*****
U.S. ALL AMERICAN EQUITY FUND
A fund starring America's best-known blue chips:
Wal-Mart, McDonalds, Toys R Us and more.
[GRAPHIC: U.S. GLOBAL INVESTORS, INC. LOGO]
Call today for a FREE investment kit
containing everything you need to open an
account in one of our award-winning funds.
1-800-557-2297, ext. 171
www.usfunds.com
[INSERT: POSTCARD SIDE 2]
[GRAPHIC: U.S. GLOBAL INVESTORS, INC. LOGO]
It's easy to invest in any
of these award-winning funds.
You can open a new account
with as little as $100 when you
use the ABC Investment Plan(R) to
invest $ 30 or more each month.
Call today to enroll in the Plan
and learn more about our star funds.
1-800-US-FUNDS
