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(company logo)
Dear Investor:
Despite the dip in October, by November the market was up over 55% for the past
two years. Another year of exceptional Dow performance leaves many investors
wondering, is now a good time to invest?
If you think the market is too high to invest now, consider this: Since 1925,
over rolling five-year periods the Dow Jones Industrial Average has been up 71
out of 77 times. During this time an investment in the Dow, with dividends
reinvested, would have made money 92% of the time if held for five years or
more!
So what are you waiting for? With an investment in U.S. Global Investors' All
American Equity and Bonnel Growth Funds, you capitalize on the growth of
America's blue chip and mid-cap stocks, while protecting yourself against
downturns in foreign markets.
Balance the strong performance of all American blue chip stocks with the growth
potential of select small and mid-cap stocks. Use both funds together for a
diversified stock portfolio. And remember, your money won't grow unless you put
it to work for you.
Sincerely,
/S/FRANK HOLMES
Frank Holmes,
Chairman and CEO
For more complete information about US Global Investors' funds, including
charges and expenses, call 1-800-US-FUNDS or visit our Web site at
www.us-global.com for a free prospectus. Read it carefully before you invest or
send money.
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Yes I need to learn more about the following investment opportunities. Please
RUSH me a FREE investment guide and prospectus today.
o Please enclose an IRA investment guide.
o Bonnel Growth Fund
o All American Equity Fund
Name____________________________________________________________________________
Address_________________________________________________________________________
City _____________________ State _______________ Zip Code _____________________
Daytime Phone___________________________________________________________________
(page 1)
BALANCE
STRONG
PERFORMANCE
WITH
GROWTH
POTENTIAL
(graphics: a circle with the word "FREE" written in the middle
and the words "save with a Lifetime IRA" around it)
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(page 2)
U.S. GLOBAL INVESTORS'
BONNEL GROWTH FUND
Today's Mid-Caps: Tomorrow's Blue-Chips?
Performance:
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28.67% 32.97%
................ ................
1 year Since Inception
(as of 9/30/97) (10/17/94)
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4 Star Mutual Funds Magazine rating.
* * * *
EXPERIENCED PORTFOLIO MANAGEMENT
Art Bonnel has been managing money since 1970. He begins with a universe of over
9000 stocks listed on the NASDAQ, NYSE and AMEX. He tracks down the quality
mid-cap growth companies: companies with strong earnings, a strong balance
sheet, a competitive edge, and management ownership in the company.
GROWTH POTENTIAL
The Fund invests in mid-size companies with market capitalizations of around
$1billion. Historically companies of this size grow faster than blue-chips and
offer greater opportunities for return. And today's midcaps may become
tomorrow's blue chips.
YOUR INVESTMENT IS DIVERSIFIED TO REDUCE RISK
When you invest in the Bonnel Growth Fund, your investment is allocated across
many companies, limiting the impact of any one company not performing well. In
addition, as an institutional investor, the Fund can negotiate lower commissions
on its portfolio transactions.
SAVE MONEY WITH A NO-LOAD INVESTMENT
Because the Fund is no-load, you never pay loads or sales charges.
YOU ALWAYS HAVE EASY ACCESS TO YOUR MONEY
You can buy, exchange or sell Fund shares on any business day. You can withdraw
money from your account by written request or by telephone exchange.
YOUR ACCOUNT INFORMATION IS JUST A TOLL-FREE PHONE CALL AWAY
You can call toll-free from anywhere in America to check your account balance,
confirm deposits, verify exchanges and more. This convenient service is
available 24 hours a day, seven days a week.
(page 3)
U.S. GLOBAL INVESTORS'
ALL AMERICAN EQUITY FUND
Invest in the Best.
Performance: 4 Star Morningstar rating. (3 years as of 9/30/97)
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36.82% 17.32% 8.34%
................ ................ ................
1 year 5 Years 10 Years
(as of 9/30/97) (as of 9/30/97) (as of 9/30/97)
---------------- ---------------- ----------------
4 Star Mutual Funds Magazine rating.
* * * *
EXPERIENCED PORTFOLIO MANAGEMENT
A seasoned investor in the financial markets of the United States and Asia, Bin
Shi, C.F.A., manages the All American Equity Fund. After graduating with honors
in international finance and trade from the prestigious Fudan University, Bin
worked as a bank officer specializing in international finance. During his
graduate studies at Tulane University, Bin conducted in-depth research of the
American securities markets, including analysis of the volatility of the S&P
500.
INVEST IN AMERICA'S BEST AND BIGGEST
The Fund invests in American blue-chips: companies with market capitalizations
over $1 billion. The Fund seeks to out-perform the S&P 500 Index.
PROTECT YOUR ASSETS AGAINST A DOWNTURN IN THE GLOBAL MARKET
The fund invests in all-American companies you know and trust, with proven track
records and consistent returns. In addition, as an institutional investor, the
Fund can negotiate lower commissions on its portfolio transactions.
SAVE MONEY WITH A NO-LOAD INVESTMENT
Because the Fund is no-load, you never pay loads or sales charges.
YOU ALWAYS HAVE EASY ACCESS TO YOUR MONEY
You can buy, exchange or sell Fund shares on any business day. You can withdraw
money from your account by written request or by telephone exchange.
YOUR ACCOUNT INFORMATION IS JUST A TOLL-FREE PHONE CALL AWAY
You can call toll-free from anywhere in America to check your account balance,
confirm deposits, verify exchanges and more. This convenient service is
available 24 hours a day, seven days a week.
(page 4)
WHAT ARE MY INVESTMENT OPTIONS?
o Open a new account in the All American Equity Fund or the Bonnel
Growth Fund with a $5000 initial investment.
o Get started with our ABC Investment Plan(R) with a $1,000 initial
investment and $100 per month for the Bonnel Growth Fund, or a $100
initial investment with $30 per month for the All American Equity Fund.
o Open an IRA account. IRAs require no minimum investment.
INVEST TODAY!
CALL
1-800-557-2297,
ext. 231
Return the enclosed business reply card
today with your name and address.
Visit U.S. Global Investors at
www.us-global.com.
For more complete information about US Global Investors' funds, including
charges and expenses, call 1-800-US-FUNDS or visit our Web site at
www.us-global.com for a free prospectus. Read it carefully before you invest or
send money.
Past performance is no guarantee of future results. Investment returns and
principle will fluctuate so that you may have a gain or a loss when you sell
shares.
Morningstar uses a proprietary rating system to show historical, risk-adjusted
performance. These ratings may change monthly and are calculated from the funds'
one-,three-, five-, and ten-year (when available) average annual returns in
excess of 90-day Treasury bill returns, with an appropriate adjustment for fees
and expenses and with a risk factor reflecting the funds' performance below
90-day T-bill returns. The one-year ranking is calculated using the same
methodology but is not a component of the overall ranking. Morningstar awards
five stars to funds in the top 10% of their category, four stars to funds in the
next 22.5%, three stars to the next 35%, two stars to the next 22.5%, and one
star in the bottom 10%. Morningstar awarded the All American Equity Fund 2, 4, 3
and 1 stars out of 2,143, 2,143, 1,187, and 638 domestic equity funds for the 1,
3, 5, and 10 year periods ended 9/30/97.
*Mutual Funds Magazine's All-Star Ratings combine return and risk to provide an
overall summary of the fund's performance. Funds are first ranked by their total
return over their entire performance history, subject to a minimum of two years
and a maximum of ten. The most recent quarter of returns receives the most
weight, with each older quarter receiving progressively less weight, so that the
oldest quarter receives the least. An identical process is used to rank each
fund for risk. The two rankings, return and risk, are combined to produce a
final numerical rating for each fund. The 20% of funds with the highest combined
rating are awarded 5 Stars; the second 20% receive 4 Stars; the third 20%
receive 3 Stars; the fourth 20% receive 2 Stars, and the bottom fifth of the
funds, those with the poorest risk-adjusted returns, receive only 1 Star. Total
return calculations implicitly consider fund's ongoing expenses, including
management fees, 12b-1 fees, and operating expenses, all of which reduce the net
return to shareholders. Mutual Fund Magazine also reduce funds' returns based on
sales loads and redemption fees. All-Star ratings are not inherently predictive.
The All-Star rating is based on fund performance through 12/5/97 for the
category of all mutual funds. See the February 1998 issue of Mutual Fund
Magazine for more details.
