U.S. GLOBAL INVESTORS FUNDS
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SEMI-ANNUAL REPORT
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(UNAUDITED)
DECEMBER 31, 1998
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TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS 1
MANAGEMENT TEAM'S PERSPECTIVE 5
PORTFOLIOS OF INVESTMENTS 32
STATEMENTS OF ASSETS AND LIABILITIES 76
STATEMENTS OF OPERATIONS 80
STATEMENTS OF CHANGES IN NET ASSETS 84
NOTES TO FINANCIAL STATEMENTS 92
FINANCIAL HIGHLIGHTS 99
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[LOGO]
U.S. Global Investors
P.O. Box 781234
San Antonio, Texas 78278-1234
Tel 1*800*US*FUNDS
Fax 210*308*1217
www.us-global.com
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U.S. GLOBAL INVESTORS FUNDS
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DEAR SHAREHOLDER
Dear Shareholder,
What a difference six months can make! Especially in [PHOTO]
financial terms, where we have watched the markets at home
and abroad seesaw back and forth between stellar returns and
lackluster performance for the better part of a year. In
times like these, stability is the watchword for investors:
You want the security of knowing that your investments will
stay on an even keel as you navigate through bull, bear and
choppy markets.
One of the best places to start is with our U.S. Government Securities Savings
Fund. According to Lipper Analytical Services, Inc., on December 31, 1998, the
fund ranked among the top 10 highest-yielding government money market funds out
of 85 similar funds for the past five years.<F1> In today's market environment,
this short-term fund is an excellent means of ensuring instant liquidity, which
you may need to prevent selling at a loss should the market head downward for a
sustained period.
With global and domestic interest rates falling, it is smart to diversify your
portfolio with tax free income to take advantage of the appreciation in bond
prices when interest rates fall. Morningstar awarded our Near-Term Tax Free
Fund five stars, its highest rating, out of 1,577 and 1,040 municipal bond
funds for the 3- and 5-year periods ended December 31, 1998. The Tax Free Fund
received four stars out of 1,577 and 1,040 municipal bond funds for the 3- and
5-year periods ended December 31, 1998.<F2>
To round out your core holdings, we suggest the All American Equity Fund for
both performance and stability. The fund ranked 68 out of a universe of 768
growth and income funds for the year ended December 31, 1998, according to
Lipper Analytical Services, Inc. It also earned Morningstar's highest rating,
five stars, for the 3-year period ended December 31, 1998, among 2,802 domestic
equity funds.<F2> In fact, I am pleased to report the fund's returns outpaced
those of the S&P 500 Index in 1998. The All American Equity Fund is widely
acknowledged as one of the least volatile large caps, providing additional
security in turbulent markets such as we saw this autumn. Among its major
holdings are some of the best-known names in corporate America: Coca-Cola,
McDonald's, Microsoft and many others.
On the global side, the brunt of the Asian flu seems to have passed, and equity
markets in the Far East already are beginning to return, albeit slowly. With
Japan continuing to restructure its banking system and more progressive free
market policies now in place in China, the Asian markets should rebound and
eventually recover lost ground. With the long-term prognosis solid, this is the
time to consider allocating more assets to the
1
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U.S. GLOBAL INVESTORS FUNDS
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region through our China Region Opportunity Fund. You should know that foreign
and emerging market investing involves special risks such as currency
fluctuation and less public disclosure as well as economic and political risks.
Looking at specific sectors, we underscore the viability of an often overlooked
stock category: gold equities. In spite of the overall poor gold market in
1998, some companies managed to perform well. We included those companies such
as Meridian Gold, Gold Corp and Getchell Gold in our World Gold and Gold Shares
portfolios because we believed that these companies represented growth and
value not realized by the market, and we capitalized on this lack of attention
to the benefit of these funds' shareholders. The price of gold is subject to
substantial price fluctuations over short periods of time and may be affected
by unpredictable international monetary and political policies. We suggest you
invest no more than 5-10% of your total assets in gold or gold stocks.
In the past six months, U.S. Global Investors was hard at work finding ways to
make your money work harder. Chief among our successes was the unveiling of a
new investment strategy, the result of rigorous analysis and diligent
backtesting. The philosophy behind this disciplined strategy is practical and
simple: to make money for our shareholders. To do so, we use a top-down,
bottom-up approach. "Top-down" refers to the broad macroeconomic themes that
affect all stocks, such as price and the timing within a market cycle.
"Bottom-up" refers to individual stock selection based on the fundamental value
of a company. Many money managers subscribe to either a top-down or bottom-up
investing discipline. However, we employ a combination of both. This is an
important distinction, as it helps ensure the selection of the best stocks at
the most opportune time in the market.
We actively manage all of our portfolios, equity and fixed income alike. Each
has an appropriate benchmark that we seek to outperform over the long term. For
all of our funds, our goal is to seek consistent superior performance with each
fund in the top 50% of its respective peer group as defined by the appropriate
Lipper Index. In fact, the compensation our portfolio managers receive is based
on the fund's performance being in the top 50% of its peer group. Our funds
benefit from these disciplined procedures and monitoring throughout each step
of the investment process, and the strategy is continuously backtested to
ensure that it is accurate for each fund.
There are some outstanding buying opportunities ahead for the long-term
investor. With this in mind, remember that following a few sound principles of
prudent investing is more important than picking any one stock, bond or fund.
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U.S. GLOBAL INVESTORS FUNDS
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Three easy-to-follow guides should help:
SET YOUR GOALS. Then decide on a realistic long-term plan for achieving them
and stick with it. Time is your ally here; and although at first it may seem
difficult, you can develop the habit of investing regularly sooner than you
think.
ALLOCATE YOUR ASSETS WISELY. With the U.S. Global Investors family of no-load
funds, you can diversify across asset class, industry and geographical sectors,
while reducing the volatility of your portfolio at the same time.
INVEST EVERY MONTH. Build your position in a fund gradually by investing on a
steady basis. With U.S. Global Investors, you can do so automatically by
enrolling in our ABC Investment Plan.(R)<F3> And don't allow short-term market
fluctuations to influence your overall, long-range objectives!
In the following pages you'll find concise fund-by-fund analysis, detailing
each fund's performance for the past six months and the factors that
influenced it.
We recognize that financial reports and literature can be daunting to both
novice and veteran investors alike. If you have any questions about the
material inside or regarding your U.S. Global Investors' portfolio, please
call our Investment Center at 1-800-US-FUNDS (1-800-873-8637).
May you be blessed with an abundance of prosperity, health and happiness in
1999.
Sincerely,
/s/ Frank Holmes
Frank Holmes
President & CEO
U.S. Global Investors
For more complete information on any of our funds, including charges and
expenses, please call 1-800-US-FUNDS or visit our website at www.us-global.com
for a free prospectus. Please read the prospectus carefully before you invest
or send money. Investment returns and principal will fluctuate so that you may
have a gain or loss when you sell shares. Past performance is no guarantee
of future results.
3
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U.S. GLOBAL INVESTORS FUNDS
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<F1>Like all money market funds, an investment in the U.S. Government
Securities Savings Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation (FDIC) or by any other government agency. Although
the fund seeks to preserve the value of your investment at $1.00 per share,
it is possible to lose money by investing in the fund.
<F2>Morningstar awarded the Tax Free Fund four, four and two stars out of
1,577, 1,040 and 370 municipal bond funds for the 3-, 5- and 10-year
periods ended December 31, 1998, respectively.
Morningstar awarded the All American Equity Fund five, four and three stars
out of 2,802, 1,702 and 732 domestic equity funds for the 3-, 5-and 10-year
periods ended December 31, 1998, respectively.
Morningstar uses a proprietary rating system to show historical, risk-
adjusted performance. These ratings may change monthly and are calculated
from the funds' 1-, 3-, 5- and 10-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
fund's performance below 90-day Treasury 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% and two stars to the next 22.5%.
The Adviser for the Near-Term Tax Free Fund, Tax Free Fund and the All
American Equity Fund guaranteed total fund operating expenses (as a
percentage of net assets) will not exceed 0.70%, 0.70% and 1.00%
respectively until June 30, 1999.
Regarding the Near-Term Tax Free Fund and Tax Free Fund, some income may be
subject to state, federal or AMT taxes for certain investors.
<F3>Periodic investment plans do not assure a profit or protect against a loss
in declining markets. This type of plan involves continuous investment in
securities regardless of fluctuating price levels. Investors should
consider their financial ability to continue purchases through periods of
low price levels.
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MONEY MARKET FUNDS
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MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The U.S. Treasury Securities Cash Fund invests in short-term U.S. Treasury
securities, which are protected by the full faith and credit of the United
States government, and repurchase agreements, which are short-term lending
arrangements collateralized by U.S. Treasury securities.
The U.S. Government Securities Savings Fund seeks to preserve capital and
generate income by investing exclusively in short-term securities backed by
the United States government or its agencies. Typically, these government
agency securities carry a higher yield than U.S. Treasury securities.
PERFORMANCE
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U.S. TREASURY SECURITIES CASH FUND As of December 31, 1998
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7-Day Yield 3.76%
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7-Day Effective Yield 3.83%
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Weighted Average Days to Maturity 63
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U.S. GOVERNMENT SECURITIES SAVINGS FUND As of December 31, 1998
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7-Day Yield 4.70%
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7-Day Effective Yield 4.81%
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Weighted Average Days to Maturity 75
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SIX MONTHS IN REVIEW
Asia's flu became a worldwide illness over the third quarter and began to
affect the U.S. economy. Russia, Brazil and Argentina fell as a result of the
flu. The front end of the economy, or the consumer sector, continued to show
signs of strength mostly in housing, retail and nondurable goods. However, the
back end of the economy, or the manufacturing and distribution sector, was very
slow and inventories began to accumulate. Economists began to forecast a coming
recession.
As more and more foreign markets became unstable or fell, foreign currency was
converted to dollars and put to work in the U.S. Treasury market. Many hedge
funds found themselves bankrupt and Long Term
5
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MONEY MARKET FUNDS
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Capital Management epitomized the problem by forcing a bailout engineered by
the Federal Reserve Bank. Flight to quality, or selling foreign assets and
buying U.S. Treasury securities, was one of the main factors that helped to
bring down the short-term interest rates. By the end of September, the
three-month Treasury bill was yielding 4.83% and economists were calling for
zero inflation and for an earnings decline in the coming quarters. On
September 25, 1998, the Federal Reserve lowered interest rates 25 basis points
from 5.50% to 5.25%, ostensibly to help avert any slowdown in the economy.
The fourth quarter began with a lot of pressure on short-term interest rates.
Frantic buying of short-term U.S. Treasury securities by both foreign and
domestic investors caused interest rates from the three-month bill to the
five-year note to drop below 4.00%. This move was an extreme reaction to the
perception that the fixed-income markets were collapsing. Spreads between
Treasuries and comparable maturity corporate bonds widened and remained wide
through the end of the year.
The Federal Reserve lowered interest rates 25 basis points two more times and
adopted a neutral policy stance at the November 17th meeting. As a result,
they left interest rates unchanged at their December 22nd meeting.
INVESTMENT HIGHLIGHTS
Using our top-down analysis, we were able to discern that interest rates were
indeed going to fall in the second half of the year. However, our analysis did
not predict the depth of the unraveling of the fixed-income markets both at home
and abroad. As a result, the yield on the funds dropped during that period. Some
of our shorter investments in both funds matured and were held in cash.
Bottom-up analysis of the offerings revealed a slight advantage in yield for the
six month sector of the yield curve. We found that callable agency yields had
declined, leading us to purchase non-callable maturities.
In the U.S. Treasury Securities Cash Fund, we took on some new coupon positions
in the four-to-six month area of the curve. The repurchase agreement portion of
the portfolio helped to balance out the new purchases.
In the U.S. Government Securities Savings Fund, we concentrated on buying more
fixed-rate paper. By year end, we were approximately 70% fixed rate and 30%
floating rate, reflecting our easing stance on future interest rate changes.
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MONEY MARKET FUNDS
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CURRENT OUTLOOK
After reading that the Federal Reserve had adopted a neutral policy stance in
November, we fully expect them to leave interest rates unchanged at the February
meeting. We expect the fourth quarter of 1998 to show an increase in GDP of
approximately 3.5-4.0%. This will cause a few investors to fear the onset of
inflation in the first quarter of 1999. Overseas pressures, coupled with global
deflation and rising domestic unemployment, will help to move interest rates
lower in the next six months.
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TAX FREE FUNDS
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MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
Both tax-free funds invest in securities which pay interest that is exempt from
federal income taxation. The Near-Term Tax Free Fund attempts to maintain an
average weighted portfolio maturity of five years or less. The Tax Free Fund has
no stated maturity restriction although it will normally have a longer average
maturity than the Near-Term Tax Free Fund. Both funds invest in securities in
the four highest rating categories and seek to preserve capital while providing
income that is exempt from federal income tax.
PERFORMANCE
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NEAR-TERM TAX FREE FUND
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[Near Term Tax Fund mountain graph plotted from the data in the table below.]
<TABLE>
<CAPTION>
U.S. Global Investors Funds Lehman Municipal 3 Year Index
Near-Term Tax Free
<S> <C> <C> <C>
Date Value Date Value
12/04/90 $10,000.00 12/04/90
12/31/90 $10,010.00 12/31/90 $10,000.00
1/31/91 $10,040.00 1/31/91 $10,126.64
2/28/91 $9,989.90 2/28/91 $10,217.90
3/28/91 $9,969.78 3/28/91 $10,222.55
4/30/91 $10,151.78 4/30/91 $10,322.19
5/31/91 $10,233.24 5/31/91 $10,388.30
6/28/91 $10,151.46 6/28/91 $10,397.62
7/31/91 $10,315.85 7/31/91 $10,480.49
8/30/91 $10,491.22 8/30/91 $10,584.78
9/30/91 $10,615.75 9/30/91 $10,673.25
10/31/91 $10,751.31 10/31/91 $10,749.60
11/29/91 $10,740.83 11/29/91 $10,812.93
12/31/91 $10,983.03 12/31/91 $11,028.96
1/31/92 $10,961.83 1/31/92 $11,076.45
2/28/92 $10,951.16 2/28/92 $11,080.17
3/31/92 $10,951.16 3/31/92 $11,055.03
4/30/92 $11,037.31 4/30/92 $11,138.84
5/29/92 $11,199.62 5/29/92 $11,231.96
6/30/92 $11,395.34 6/30/92 $11,368.84
7/31/92 $11,778.10 7/31/92 $11,590.46
8/31/92 $11,503.43 8/31/92 $11,538.32
9/30/92 $11,558.63 9/30/92 $11,632.37
10/30/92 $11,248.03 10/30/92 $11,586.74
11/30/92 $11,560.17 11/30/92 $11,667.75
12/31/92 $11,705.65 12/31/92 $11,738.52
1/29/93 $11,829.46 1/29/93 $11,826.99
2/26/93 $12,338.37 2/26/93 $12,011.36
3/31/93 $12,156.59 3/31/93 $11,975.98
4/30/93 $12,282.15 4/30/93 $12,045.81
5/28/93 $12,270.69 5/28/93 $12,077.47
6/30/93 $12,431.99 6/30/93 $12,155.69
7/30/93 $12,466.72 7/30/93 $12,161.28
8/31/93 $12,594.40 8/31/93 $12,274.89
9/30/93 $12,687.52 9/30/93 $12,328.89
10/29/93 $12,722.60 10/29/93 $12,354.97
11/30/93 $12,687.39 11/30/93 $12,338.21
12/31/93 $12,852.47 12/31/93 $12,468.57
1/31/94 $12,936.08 1/31/94 $12,569.14
2/28/94 $12,804.33 2/28/94 $12,451.81
3/31/94 $12,599.94 3/31/94 $12,301.89
4/29/94 $12,624.07 4/29/94 $12,374.52
5/31/94 $12,672.54 5/31/94 $12,432.26
6/30/94 $12,684.70 6/30/94 $12,435.98
7/29/94 $12,794.57 7/29/94 $12,539.34
8/31/94 $12,831.31 8/31/94 $12,584.04
9/30/94 $12,819.01 9/30/94 $12,552.38
10/31/94 $12,794.36 10/31/94 $12,521.65
11/30/94 $12,757.28 11/30/94 $12,499.30
12/30/94 $12,844.15 12/30/94 $12,553.31
1/31/95 $12,931.27 1/31/95 $12,657.60
2/28/95 $13,006.16 2/28/95 $12,790.76
3/31/95 $13,093.87 3/31/95 $12,905.30
4/28/95 $13,131.60 4/28/95 $12,949.06
5/31/95 $13,270.50 5/31/95 $13,147.41
6/30/95 $13,321.19 6/30/95 $13,179.07
7/31/95 $13,397.53 7/31/95 $13,317.81
8/31/95 $13,461.33 8/31/95 $13,422.11
9/29/95 $13,499.76 9/29/95 $13,460.29
10/31/95 $13,551.18 10/31/95 $13,524.54
11/30/95 $13,641.53 11/30/95 $13,611.14
12/29/95 $13,680.39 12/29/95 $13,667.01
1/31/96 $13,784.62 1/31/96 $13,774.09
2/29/96 $13,784.62 2/29/96 $13,776.89
3/29/96 $13,719.04 3/29/96 $13,743.37
4/30/96 $13,719.04 4/30/96 $13,760.13
5/31/96 $13,732.25 5/31/96 $13,772.23
6/28/96 $13,811.78 6/28/96 $13,854.18
7/31/96 $13,891.61 7/31/96 $13,931.46
8/30/96 $13,931.69 8/30/96 $13,951.95
9/30/96 $14,025.55 9/30/96 $14,036.69
10/31/96 $14,119.77 10/31/96 $14,134.46
11/29/96 $14,268.40 11/29/96 $14,266.69
12/31/96 $14,268.40 12/31/96 $14,273.21
1/31/97 $14,322.91 1/31/97 $14,335.60
2/28/97 $14,402.25 2/28/97 $14,405.44
3/31/97 $14,306.15 3/31/97 $14,330.94
4/30/97 $14,376.44 4/30/97 $14,392.40
5/30/97 $14,510.65 5/30/97 $14,509.73
6/30/97 $14,620.35 6/30/97 $14,595.40
7/31/97 $14,864.26 7/31/97 $14,768.60
8/29/97 $14,787.35 8/29/97 $14,739.73
9/30/97 $14,926.24 9/30/97 $14,844.96
10/31/97 $14,991.02 10/31/97 $14,911.07
11/28/97 $15,039.06 11/28/97 $14,953.91
12/31/97 $15,196.39 12/31/97 $15,055.40
1/30/98 $15,318.76 1/30/98 $15,155.04
2/27/98 $15,311.62 2/27/98 $15,186.70
3/31/98 $15,305.89 3/31/98 $15,210.91
4/30/98 $15,285.77 4/30/98 $15,190.43
5/29/98 $15,451.61 5/29/98 $15,331.04
6/30/98 $15,500.80 6/30/98 $15,382.25
7/31/98 $15,547.42 7/31/98 $15,438.12
8/31/98 $15,722.93 8/31/98 $15,588.04
9/30/98 $15,875.61 9/30/98 $15,686.75
10/30/98 $15,868.25 10/30/98 $15,763.11
11/30/98 $15,891.87 11/30/98 $15,801.29
12/31/98 $15,900.76 12/31/98 $15,839.46
</TABLE>
<TABLE>
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AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 1998
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<CAPTION>
Inception Five Year One Year Six Month
<S> <C> <C> <C> <C>
Near-Term Tax Free Fund
(Inception 12/4/90) 5.91% 4.35% 4.64% 2.58%
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Lehman Municipal 3-Year Bond
Index 5.91% 4.90% 5.21% 2.97%
</TABLE>
Past performance is not predictive of future results. Investment return
and principal value may fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. Lehman Brothers Bond
Indexes include fixed-rate debt issues rated investment grade or higher
by Moody's Investment Service, Standard & Poor's Corporation, or Fitch
Investor's Service, in that order. All issues have at least one year to
maturity and an outstanding par value of at least $100 million.
Intermediate indexes include bonds with maturities of up to ten years,
and long term indexes include those with maturities of ten years or
longer.
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8
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TAX FREE FUNDS
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TAX FREE FUND
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[Tax Free Fund mountain graph plotted from the data in the table below.]
<TABLE>
<CAPTION>
U.S. Global Investors Funds Lehman Municipal 10-Year Index
Tax Free Fund
<S> <C> <C> <C>
Date Value Date Value
---- ----- ---- -----
12/30/88 $10,000.00 12/30/88 $10,000.00
1/31/89 $10,118.51 1/31/89 $10,221.57
2/28/89 $10,054.69 2/28/89 $10,128.89
3/31/89 $10,045.58 3/31/89 $10,091.23
4/28/89 $10,267.38 4/28/89 $10,283.84
5/31/89 $10,415.24 5/31/89 $10,491.89
6/30/89 $10,544.62 6/30/89 $10,614.50
7/31/89 $10,638.19 7/31/89 $10,767.52
8/31/89 $10,544.62 8/31/89 $10,703.80
9/29/89 $10,497.84 9/29/89 $10,653.60
10/31/89 $10,621.23 10/31/89 $10,775.25
11/30/89 $10,773.10 11/30/89 $10,954.82
12/29/89 $10,820.56 12/29/89 $11,067.77
1/31/90 $10,714.66 1/31/90 $11,034.47
2/28/90 $10,801.31 2/28/90 $11,116.53
3/30/90 $10,801.31 3/30/90 $11,098.67
4/30/90 $10,596.22 4/30/90 $11,024.81
5/31/90 $10,890.56 5/31/90 $11,263.76
6/29/90 $10,998.97 6/29/90 $11,369.47
7/31/90 $11,187.07 7/31/90 $11,527.32
8/31/90 $10,829.09 8/31/90 $11,361.75
9/28/90 $10,898.95 9/28/90 $11,364.16
10/31/90 $11,089.46 10/31/90 $11,614.21
11/30/90 $11,452.38 11/30/90 $11,851.23
12/31/90 $11,472.65 12/31/90 $11,880.19
1/31/91 $11,615.30 1/31/91 $12,076.17
2/28/91 $11,645.97 2/28/91 $12,179.96
3/28/91 $11,625.45 3/28/91 $12,173.68
4/30/91 $11,800.50 4/30/91 $12,341.67
5/31/91 $11,872.90 5/31/91 $12,434.83
6/28/91 $11,789.80 6/28/91 $12,420.35
7/31/91 $11,967.01 7/31/91 $12,550.20
8/30/91 $12,103.12 8/30/91 $12,719.64
9/30/91 $12,229.19 9/30/91 $12,914.66
10/31/91 $12,324.15 10/31/91 $13,019.89
11/29/91 $12,313.56 11/29/91 $13,041.61
12/31/91 $12,611.29 12/31/91 $13,319.66
1/31/92 $12,578.68 1/31/92 $13,347.65
2/28/92 $12,589.61 2/28/92 $13,327.38
3/31/92 $12,578.63 3/31/92 $13,307.11
4/30/92 $12,677.94 4/30/92 $13,433.58
5/29/92 $12,844.17 5/29/92 $13,590.94
6/30/92 $13,089.24 6/30/92 $13,826.51
7/31/92 $13,581.91 7/31/92 $14,279.78
8/31/92 $13,312.07 8/31/92 $14,110.83
9/30/92 $13,357.23 9/30/92 $14,228.62
10/30/92 $13,062.17 10/30/92 $14,083.32
11/30/92 $13,358.78 11/30/92 $14,340.61
12/31/92 $13,519.18 12/31/92 $14,507.63
1/29/93 $13,623.08 1/29/93 $14,751.88
2/26/93 $14,098.44 2/26/93 $15,291.56
3/31/93 $13,912.17 3/31/93 $15,068.55
4/30/93 $14,099.22 4/30/93 $15,211.91
5/28/93 $14,146.18 5/28/93 $15,265.01
6/30/93 $14,393.74 6/30/93 $15,566.23
7/30/93 $14,417.41 7/30/93 $15,605.33
8/31/93 $14,714.56 8/31/93 $15,928.75
9/30/93 $14,893.57 9/30/93 $16,124.73
10/29/93 $14,941.53 10/29/93 $16,151.28
11/30/93 $14,796.94 11/30/93 $16,019.02
12/31/93 $15,111.77 12/31/93 $16,360.78
1/31/94 $15,272.27 1/31/94 $16,561.59
2/28/94 $14,937.57 2/28/94 $16,107.84
3/31/94 $14,376.94 3/31/94 $15,492.86
4/29/94 $14,427.03 4/29/94 $15,663.26
5/31/94 $14,565.51 5/31/94 $15,788.28
6/30/94 $14,502.24 6/30/94 $15,720.22
7/29/94 $14,731.22 7/29/94 $15,984.26
8/31/94 $14,807.88 8/31/94 $16,046.05
9/30/94 $14,628.08 9/30/94 $15,830.28
10/31/94 $14,344.29 10/31/94 $15,599.05
11/30/94 $13,994.43 11/30/94 $15,304.11
12/30/94 $14,320.19 12/30/94 $15,579.74
1/31/95 $14,714.68 1/31/95 $15,983.30
2/28/95 $15,031.69 2/28/95 $16,435.61
3/31/95 $15,230.70 3/31/95 $16,657.65
4/28/95 $15,270.68 4/28/95 $16,677.93
5/31/95 $15,658.80 5/31/95 $17,206.99
6/30/95 $15,591.60 6/30/95 $17,099.83
7/31/95 $15,672.59 7/31/95 $17,350.84
8/31/95 $15,821.60 8/31/95 $17,586.41
9/29/95 $15,930.43 9/29/95 $17,698.88
10/31/95 $16,121.70 10/31/95 $17,903.07
11/30/95 $16,327.51 11/30/95 $18,143.46
12/29/95 $16,479.08 12/29/95 $18,254.49
1/31/96 $16,575.93 1/31/96 $18,439.37
2/29/96 $16,492.56 2/29/96 $18,363.58
3/29/96 $16,297.22 3/29/96 $18,135.26
4/30/96 $16,255.22 4/30/96 $18,071.06
5/31/96 $16,269.28 5/31/96 $18,020.37
6/28/96 $16,410.51 6/28/96 $18,191.73
7/31/96 $16,552.22 7/31/96 $18,366.00
8/30/96 $16,552.22 8/30/96 $18,366.48
9/30/96 $16,752.33 9/30/96 $18,555.22
10/31/96 $16,895.76 10/31/96 $18,789.82
11/29/96 $17,155.03 11/29/96 $19,170.21
12/31/96 $17,111.64 12/31/96 $19,083.80
1/31/97 $17,169.74 1/31/97 $19,159.10
2/28/97 $17,312.70 2/28/97 $19,339.64
3/31/97 $17,150.12 3/31/97 $19,080.42
4/30/97 $17,295.73 4/30/97 $19,220.89
5/30/97 $17,514.33 5/30/97 $19,493.15
6/30/97 $17,711.57 6/30/97 $19,708.44
7/31/97 $18,151.01 7/31/97 $20,262.12
8/29/97 $17,997.01 8/29/97 $20,065.65
9/30/97 $18,193.64 9/30/97 $20,320.04
10/31/97 $18,279.56 10/31/97 $20,427.69
11/28/97 $18,387.00 11/28/97 $20,522.30
12/31/97 $18,666.37 12/31/97 $20,846.21
1/30/98 $18,829.55 1/30/98 $21,077.43
2/27/98 $18,805.05 2/27/98 $21,075.98
3/31/98 $18,786.62 3/31/98 $21,061.50
4/30/98 $18,707.95 4/30/98 $20,945.65
5/29/98 $19,011.49 5/29/98 $21,301.89
6/30/98 $19,076.78 6/30/98 $21,380.09
7/31/98 $19,137.77 7/31/98 $21,414.37
8/31/98 $19,439.20 8/31/98 $21,786.54
9/30/98 $19,669.38 9/30/98 $22,110.45
10/30/98 $19,602.92 10/30/98 $22,120.10
11/30/98 $19,693.46 11/30/98 $22,186.23
12/31/98 $19,714.19 12/31/98 $22,255.26
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 1998
- --------------------------------------------------------------------------------
<CAPTION>
Ten Year Five Year One Year Six Month
<S> <C> <C> <C> <C>
Tax Free Fund 7.02% 5.46% 5.61% 3.34%
----------------------------------------------------------------------------
Lehman Municipal 10-Year
Bond Index 8.33% 6.35% 6.76% 4.09%
</TABLE>
Past performance is not predictive of future results. Investment
return and principal value may fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. Lehman
Brothers Bond Indexes include fixed-rate debt issues rated investment
grade or higher by Moody's Investment Service, Standard & Poor's
Corporation, or Fitch Investor's Service, in that order. All issues
have at least one year to maturity and an outstanding par value of at
least $100 million. Intermediate indexes include bonds with maturities
of up to ten years, and long term indexes include those with
maturities of ten years or longer.
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
For much of the summer, both municipal issuers and buyers remained on the
sidelines watching the fixed-income markets unravel around the world. The only
stable bonds were municipals. They really did not react at all to the changes
occurring elsewhere. As we moved into the fourth quarter, municipal yields, as a
percentage of the comparable U.S. Treasury yields, were quite high. This
situation created an environment where an investment in tax free bonds offered a
superior return when compared to the U.S. Treasury investments, even before
taking into account the tax exempt status of the municipal bonds. This attracted
some retail buying, but not nearly as much as we expected. Supply grew rapidly
in October and November as issuers came to market to finance new projects while
taking advantage of the flat yield curve.
9
<PAGE>
- --------------------------------------------------------------------------------
TAX FREE FUNDS
- --------------------------------------------------------------------------------
INVESTMENT HIGHLIGHTS
A top-down macroeconomic analysis of the economy and the income tax structure
revealed little change for municipals, while interest rates were falling. In
both funds our strategy was to buy more general obligation bonds and to extend
our maturities. Our bottom-up stock selection strategy helped us to pick longer
non-callable maturities and to select more generic municipal issues, such as
traditional school bonds and water revenue issues.
CURRENT OUTLOOK
Our outlook for the next six months for the municipal market is for more retail
buying and more falling interest rates in the second quarter. We don't expect
the Federal Reserve to change rates at their next meeting, but we do expect that
they will consider a change in the second quarter. We expect to buy longer
maturities over the next several months.
- --------------------------------------------------------------------------------
MUNICIPAL BOND RATINGS--BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
NEAR-TERM TAX FREE FUND
- --------------------------------------------------------------------------------
AAA 43.84%
--------------------------------------------------------------------------
AA 11.18%
--------------------------------------------------------------------------
A 23.72%
--------------------------------------------------------------------------
BBB 9.13%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TAX FREE FUND
- --------------------------------------------------------------------------------
AAA 67.63%
--------------------------------------------------------------------------
AA 13.04%
--------------------------------------------------------------------------
A 7.92%
--------------------------------------------------------------------------
BBB 6.12%
- --------------------------------------------------------------------------------
10
<PAGE>
- --------------------------------------------------------------------------------
INCOME FUND
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Income Fund invests in a broad array of equity and debt securities, at least
80% of which are income-producing securities. The fund focuses on issuers that
have an established record of paying dividends, including companies that provide
essentials such as electricity, gas, and telephone services.
PERFORMANCE
- --------------------------------------------------------------------------------
INCOME FUND
- --------------------------------------------------------------------------------
[Income Fund mountain graph plotted from the data in the table below.]
<TABLE>
<CAPTION>
U.S. Global Investors Funds S&P Utilities S&P/BARRA 500
Income Fund (NX) Index Value Index
<S> <C> <C> <C> <C> <C>
Date Value Date Value Date Value
---- ----- ---- ----- ---- -----
12/30/88 $10,000.00 12/30/88 $10,000.00 12/30/88 $10,000.00
1/31/89 $10,380.76 1/31/89 $10,563.74 1/31/89 $10,733.00
2/28/89 $10,310.62 2/28/89 $10,328.22 2/28/89 $10,501.15
3/31/89 $10,490.98 3/31/89 $10,596.31 3/31/89 $10,778.40
4/28/89 $11,058.06 4/28/89 $11,265.18 4/28/89 $11,295.75
5/31/89 $11,574.51 5/31/89 $11,914.98 5/31/89 $11,723.86
6/30/89 $11,858.05 6/30/89 $12,102.84 6/30/89 $11,681.66
7/31/89 $12,521.94 7/31/89 $13,072.44 7/31/89 $12,487.68
8/31/89 $12,664.93 8/31/89 $12,994.91 8/31/89 $12,762.43
9/29/89 $12,828.35 9/29/89 $13,212.62 9/29/89 $12,625.87
10/31/89 $12,704.80 10/31/89 $13,272.02 10/31/89 $12,218.04
11/30/89 $13,116.62 11/30/89 $13,717.91 11/30/89 $12,326.79
12/29/89 $13,785.84 12/29/89 $14,720.86 12/29/89 $12,612.76
1/31/90 $12,880.66 1/31/90 $13,527.86 1/31/90 $11,872.39
2/28/90 $12,859.85 2/28/90 $13,377.46 2/28/90 $12,113.41
3/30/90 $12,839.04 3/30/90 $13,623.58 3/30/90 $12,257.55
4/30/90 $12,126.34 4/30/90 $13,097.61 4/30/90 $11,840.80
5/31/90 $12,901.92 5/31/90 $13,989.84 5/31/90 $12,783.32
6/29/90 $12,912.40 6/29/90 $13,695.84 6/29/90 $12,541.72
7/31/90 $12,806.83 7/31/90 $13,649.34 7/31/90 $12,542.97
8/31/90 $12,057.21 8/31/90 $12,566.08 8/31/90 $11,439.20
9/28/90 $12,036.09 9/28/90 $13,079.72 9/28/90 $10,909.57
10/31/90 $12,472.80 10/31/90 $13,939.44 10/31/90 $10,754.65
11/30/90 $12,653.87 11/30/90 $14,214.58 11/30/90 $11,489.18
12/31/90 $12,589.97 12/31/90 $14,344.10 12/31/90 $11,748.84
1/31/91 $12,567.90 1/31/91 $13,904.89 1/31/91 $12,304.56
2/28/91 $13,020.30 2/28/91 $14,383.90 2/28/91 $13,106.83
3/28/91 $12,965.13 3/28/91 $14,661.44 3/28/91 $13,226.10
4/30/91 $12,965.13 4/30/91 $14,429.26 4/30/91 $13,330.56
5/31/91 $13,098.10 5/31/91 $14,245.73 5/31/91 $13,966.44
6/28/91 $12,643.77 6/28/91 $14,050.99 6/28/91 $13,272.30
7/31/91 $12,945.34 7/31/91 $14,484.10 7/31/91 $13,799.21
8/30/91 $13,269.26 8/30/91 $14,859.44 8/30/91 $13,999.31
9/30/91 $13,615.51 9/30/91 $15,159.75 9/30/91 $13,852.33
10/31/91 $13,784.30 10/31/91 $15,466.39 10/31/91 $14,054.57
11/29/91 $13,840.56 11/29/91 $15,319.11 11/29/91 $13,270.33
12/31/91 $14,391.93 12/31/91 $16,446.44 12/31/91 $14,399.63
1/31/92 $13,925.84 1/31/92 $15,561.01 1/31/92 $14,399.63
2/28/92 $14,255.51 2/28/92 $15,132.58 2/28/92 $14,691.94
3/31/92 $14,016.78 3/31/92 $14,910.74 3/31/92 $14,461.28
4/30/92 $14,245.44 4/30/92 $15,871.24 4/30/92 $15,166.98
5/29/92 $14,771.36 5/29/92 $15,848.91 5/29/92 $15,209.46
6/30/92 $14,542.70 6/30/92 $16,072.93 6/30/92 $15,084.74
7/31/92 $15,255.46 7/31/92 $17,342.06 7/31/92 $15,629.29
8/31/92 $15,174.99 8/31/92 $17,213.11 8/31/92 $15,176.04
9/30/92 $15,243.97 9/30/92 $17,338.98 9/30/92 $15,342.98
10/30/92 $15,313.36 10/30/92 $17,180.47 10/30/92 $15,219.63
11/30/92 $15,278.67 11/30/92 $17,158.99 11/30/92 $15,631.76
12/31/92 $15,556.25 12/31/92 $17,777.22 12/31/92 $15,915.18
1/29/93 $15,692.38 1/29/93 $18,052.82 1/29/93 $16,354.74
2/26/93 $16,484.43 2/26/93 $19,349.18 2/26/93 $16,918.18
3/31/93 $17,016.58 3/31/93 $19,694.91 3/31/93 $17,385.63
4/30/93 $16,867.64 4/30/93 $19,642.30 4/30/93 $17,315.39
5/28/93 $17,103.46 5/28/93 $19,267.93 5/28/93 $17,638.65
6/30/93 $17,550.29 6/30/93 $20,159.56 6/30/93 $17,871.84
7/30/93 $17,774.97 7/30/93 $20,616.00 7/30/93 $18,093.82
8/31/93 $18,698.67 8/31/93 $21,613.44 8/31/93 $18,802.74
9/30/93 $18,561.37 9/30/93 $21,570.56 9/30/93 $18,795.85
10/29/93 $18,623.99 10/29/93 $21,530.22 10/29/93 $18,897.95
11/30/93 $17,734.75 11/30/93 $20,444.05 11/30/93 $18,559.83
12/31/93 $18,310.87 12/31/93 $20,341.18 12/31/93 $18,875.78
1/31/94 $18,753.04 1/31/94 $20,483.80 1/31/94 $19,755.73
2/28/94 $17,946.74 2/28/94 $19,318.20 2/28/94 $19,041.04
3/31/94 $16,893.34 3/31/94 $18,659.84 3/31/94 $18,257.91
4/29/94 $17,259.17 4/29/94 $19,122.16 4/29/94 $18,642.46
5/31/94 $16,906.41 5/31/94 $18,612.81 5/31/94 $18,950.94
6/30/94 $16,527.52 6/30/94 $18,655.41 6/30/94 $18,426.83
7/29/94 $17,093.35 7/29/94 $19,284.16 7/29/94 $19,050.20
8/31/94 $17,382.84 8/31/94 $19,230.61 8/31/94 $19,588.75
9/30/94 $17,027.55 9/30/94 $18,742.62 9/30/94 $18,898.76
10/31/94 $17,226.01 10/31/94 $18,903.63 10/31/94 $19,310.14
11/30/94 $16,524.80 11/30/94 $18,626.99 11/30/94 $18,527.71
12/30/94 $16,432.18 12/30/94 $18,722.55 12/30/94 $18,755.26
1/31/95 $16,806.25 1/31/95 $20,175.94 1/31/95 $19,263.19
2/28/95 $17,100.16 2/28/95 $20,141.27 2/28/95 $20,010.78
3/31/95 $17,180.32 3/31/95 $20,014.62 3/31/95 $20,562.53
4/28/95 $17,583.29 4/28/95 $20,745.04 4/28/95 $21,239.49
5/31/95 $18,187.76 5/31/95 $21,401.38 5/31/95 $22,184.48
6/30/95 $18,066.87 6/30/95 $21,500.84 6/30/95 $22,352.90
7/31/95 $18,378.13 7/31/95 $22,043.51 7/31/95 $23,122.86
8/31/95 $18,405.20 8/31/95 $22,482.96 8/31/95 $23,320.37
9/29/95 $19,027.73 9/29/95 $23,912.08 9/29/95 $24,131.50
10/31/95 $18,782.91 10/31/95 $24,486.35 10/31/95 $23,755.73
11/30/95 $19,381.35 11/30/95 $24,826.13 11/30/95 $25,000.86
12/29/95 $20,102.20 12/29/95 $26,588.41 12/29/95 $25,693.77
1/31/96 $20,463.90 1/31/96 $26,926.15 1/31/96 $26,463.01
2/29/96 $20,505.64 2/29/96 $25,855.76 2/29/96 $26,711.11
3/29/96 $20,547.37 3/29/96 $25,324.76 3/29/96 $27,336.37
4/30/96 $20,729.46 4/30/96 $25,603.43 4/30/96 $27,614.68
5/31/96 $20,743.46 5/31/96 $25,539.48 5/31/96 $28,030.90
6/28/96 $21,065.61 6/28/96 $26,600.28 6/28/96 $27,895.59
7/31/96 $20,318.30 7/31/96 $24,929.71 7/31/96 $26,718.72
8/30/96 $20,656.71 8/30/96 $25,461.27 8/30/96 $27,456.37
9/30/96 $20,783.61 9/30/96 $25,705.23 9/30/96 $28,632.32
10/31/96 $21,095.72 10/31/96 $27,013.64 10/31/96 $29,601.56
11/29/96 $22,017.85 11/29/96 $27,583.86 11/29/96 $31,866.06
12/31/96 $22,202.28 12/31/96 $27,420.44 12/31/96 $31,344.60
1/31/97 $22,751.51 1/31/97 $27,597.44 1/31/97 $32,789.26
2/28/97 $22,801.44 2/28/97 $27,326.50 2/28/97 $33,027.73
3/31/97 $21,834.46 3/31/97 $26,497.03 3/31/97 $31,896.93
4/30/97 $22,102.78 4/30/97 $26,099.62 4/30/97 $33,092.80
5/30/97 $23,276.68 5/30/97 $27,203.53 5/30/97 $35,168.50
6/30/97 $24,346.60 6/30/97 $28,054.50 6/30/97 $36,512.93
7/31/97 $25,119.51 7/31/97 $28,702.63 7/31/97 $39,434.08
8/29/97 $24,380.21 8/29/97 $28,180.46 8/29/97 $37,651.96
9/30/97 $25,747.92 9/30/97 $29,402.01 9/30/97 $39,859.45
10/31/97 $25,308.94 10/31/97 $29,689.96 10/31/97 $38,394.72
11/28/97 $26,490.81 11/28/97 $31,791.76 11/28/97 $39,858.28
12/31/97 $27,326.56 12/31/97 $34,183.51 12/31/97 $40,743.23
1/30/98 $27,326.56 1/30/98 $32,825.69 1/30/98 $40,240.96
2/27/98 $28,400.10 2/27/98 $33,934.77 2/27/98 $43,259.39
3/31/98 $30,283.68 3/31/98 $36,106.17 3/31/98 $45,450.53
4/30/98 $30,283.68 4/30/98 $35,411.88 4/30/98 $45,988.50
5/29/98 $29,891.92 5/29/98 $35,238.40 5/29/98 $45,341.54
6/30/98 $30,170.07 6/30/98 $36,542.87 6/30/98 $45,685.86
7/31/98 $29,795.90 7/31/98 $34,736.09 7/31/98 $44,693.53
8/31/98 $27,353.93 8/31/98 $35,290.45 8/31/98 $37,506.93
9/30/98 $28,653.69 9/30/98 $38,234.56 9/30/98 $39,785.74
10/30/98 $29,443.59 10/30/98 $37,602.12 10/30/98 $42,902.20
11/30/98 $30,490.21 11/30/98 $38,107.06 11/30/98 $45,136.94
12/31/98 $31,159.99 12/31/98 $39,234.29 12/31/98 $46,722.28
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 1998
- --------------------------------------------------------------------------------
<CAPTION>
Ten Year Five Year One Year Six Month
<S> <C> <C> <C> <C>
Income Fund 12.04% 11.22% 14.03% 3.28%
----------------------------------------------------------------------------
S&P/BARRA 500 Value Index 16.67% 19.87% 14.67% 2.27%
----------------------------------------------------------------------------
S&P 40 Utilities Index 14.65% 14.04% 14.78% 7.37%
</TABLE>
Past performance is not predictive of future results. Investment
return and principal value may fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. The
Standard & Poor's BARRA 500 Value Index is a capitalization-weighted
index of all stocks in the Standard & Poor's 500 that have low
price-to-book ratios. The index is rebalanced semi-annually on January
1 and July 1. It is designed so that approximately 50% of the Standard
& Poor's Index market capitalization is in the Value Index. The
Standard & Poor's 40 Utilities Index is a capitalization-weighted
index of all stocks designed to measure the performance of the utility
sector of the Standard & Poor's 500 Index.
- --------------------------------------------------------------------------------
11
<PAGE>
- --------------------------------------------------------------------------------
INCOME FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
The third quarter was marked by financial crisis. Bond markets around the world
fell and many hedge funds fell with them. Most notable of these was Long Term
Capital Management, which was big enough to warrant a bailout engineered by the
Federal Reserve. In response to the financial crisis, the Federal Reserve
lowered interest rates at the end of the quarter.
The fourth quarter started with the lowest levels seen on U.S. Treasuries in a
long time and ended with a very strong stock market. The financial sector, so
badly damaged in the third quarter, roared back to life in the fourth quarter on
expectations of lower interest rates and a steepening yield curve. The Dow
rallied back to levels last seen in July, giving investors confidence that it
could move yet higher.
INVESTMENT HIGHLIGHTS
The portfolio weightings in both telecommunications and electric companies
helped the fund's performance during the third quarter. Our exposure to oil and
natural gas did not do as well.
In the fourth quarter, our telecommunications exposure continued to do well for
us, returning approximately 20%. Our top stock selections were U.S. West, Bell
Atlantic and Sprint. The electric companies did not perform as well in the
fourth quarter, as markets worldwide rebounded and the credit crunch eased.
CURRENT OUTLOOK
Going forward, we have refocused our efforts on a top-down macroeconomic
approach, coupled with a bottom-up stock selection strategy. We believe that
this disciplined approach will yield better results for our shareholders. We
anticipate restructuring some of the portfolio, which will result in some
changes in the fund's sector weighting.
We expect the fourth quarter retail sales to show stronger than expected returns
and that the first quarter GDP will be stronger than expected. This might seem
somewhat inflationary, but we expect layoffs and the general trend toward lower
prices to continue. We believe that the large-cap, blue chip stocks will perform
well and that interest rates will remain unchanged for at least the first
quarter.
12
<PAGE>
- --------------------------------------------------------------------------------
INCOME FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
US WEST, INC. 2.91%
TELECOMMUNICATIONS
--------------------------------------------------------------------------
BELL ATLANTIC CORP. 2.53%
TELECOMMUNICATIONS
--------------------------------------------------------------------------
LUCENT TECHNOLOGIES, INC. 2.47%
TELECOMMUNICATIONS
--------------------------------------------------------------------------
CENTURY TELEPHONE ENTERPRISES 2.43%
TELECOMMUNICATIONS
--------------------------------------------------------------------------
SPRINT CORP. 2.27%
TELECOMMUNICATIONS
--------------------------------------------------------------------------
RJR NABISCO HOLDINGS CORP. 2.27%
TOBACCO
--------------------------------------------------------------------------
KOREA DEVELOPMENT BANK 2.22%
BANKS
--------------------------------------------------------------------------
XEROX CORP. 2.12%
PHOTOGRAPHY
--------------------------------------------------------------------------
GTE CORP. 2.05%
TELECOMMUNICATIONS
--------------------------------------------------------------------------
FRONTIER CORP. 1.99%
TELECOMMUNICATIONS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
TELECOMMUNICATIONS 22.86%
ELECTRIC SERVICES 13.98%
REAL ESTATE INVESTMENT TRUSTS 7.16%
NATURAL GAS TRANSMISSION & DISTRIBUTION 6.64%
BANKS 5.86%
<PAGE>
- --------------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The principal objective of the All American Equity Fund is to seek capital
appreciation by investing primarily in a broadly diversified portfolio of
domestic common stocks. The fund invests primarily in large-capitalization
stocks, while retaining the flexibility to seek out promising individual stock
opportunities. The fund seeks capital appreciation and does not emphasize
income.
PERFORMANCE
- --------------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
[All American Equity Fund mountain graph plotted from data in table below.]
<TABLE>
<CAPTION>
U.S. Global Investors Funds S & P 500 Composite Index
All American Equity Fund
<S> <C> <C> <C>
Date Value Date Value
---- ----- ---- -----
12/30/88 $10,000.00 12/30/88 $10,000.00
1/31/89 $10,577.55 1/31/89 $10,731.56
2/28/89 $10,324.46 2/28/89 $10,464.82
3/31/89 $10,551.59 3/31/89 $10,708.67
4/28/89 $10,914.99 4/28/89 $11,264.09
5/31/89 $11,174.56 5/31/89 $11,718.13
6/30/89 $10,992.86 6/30/89 $11,652.17
7/31/89 $11,995.21 7/31/89 $12,703.32
8/31/89 $12,845.89 8/31/89 $12,950.83
9/29/89 $12,793.13 9/29/89 $12,898.10
10/31/89 $11,784.19 10/31/89 $12,598.98
11/30/89 $11,790.78 11/30/89 $12,854.88
12/29/89 $11,678.68 12/29/89 $13,163.14
1/31/90 $10,813.84 1/31/90 $12,279.94
2/28/90 $10,947.92 2/28/90 $12,437.82
3/30/90 $11,095.42 3/30/90 $12,767.16
4/30/90 $10,787.02 4/30/90 $12,449.13
5/31/90 $11,202.68 5/31/90 $13,660.51
6/29/90 $10,947.92 6/29/90 $13,568.42
7/31/90 $11,070.17 7/31/90 $13,525.07
8/31/90 $10,228.02 8/31/90 $12,304.03
9/28/90 $9,902.03 9/28/90 $11,706.11
10/31/90 $9,623.58 10/31/90 $11,656.62
11/30/90 $10,132.94 11/30/90 $12,408.62
12/31/90 $10,363.85 12/31/90 $12,753.94
1/31/91 $10,801.38 1/31/91 $13,307.98
2/28/91 $11,560.21 2/28/91 $14,258.53
3/28/91 $11,826.82 3/28/91 $14,603.47
4/30/91 $11,813.15 4/30/91 $14,638.19
5/31/91 $12,278.02 5/31/91 $15,267.51
6/28/91 $11,696.93 6/28/91 $14,568.58
7/31/91 $12,209.66 7/31/91 $15,247.04
8/30/91 $12,476.27 8/30/91 $15,607.21
9/30/91 $12,223.33 9/30/91 $15,345.93
10/31/91 $12,360.06 10/31/91 $15,551.79
11/29/91 $11,854.17 11/29/91 $14,926.88
12/31/91 $13,125.72 12/31/91 $16,631.13
1/31/92 $12,898.71 1/31/92 $16,321.58
2/28/92 $13,029.41 2/28/92 $16,532.87
3/31/92 $12,754.24 3/31/92 $16,211.71
4/30/92 $13,105.09 4/30/92 $16,687.19
5/29/92 $13,146.36 5/29/92 $16,768.79
6/30/92 $12,926.22 6/30/92 $16,519.41
7/31/92 $13,414.66 7/31/92 $17,193.72
8/31/92 $13,111.97 8/31/92 $16,842.47
9/30/92 $13,235.79 9/30/92 $17,040.46
10/30/92 $13,263.37 10/30/92 $17,098.95
11/30/92 $13,697.67 11/30/92 $17,679.57
12/31/92 $13,863.11 12/31/92 $17,896.47
1/29/93 $13,967.45 1/29/93 $18,045.94
2/26/93 $14,148.31 2/26/93 $18,291.80
3/31/93 $14,440.45 3/31/93 $18,677.50
4/30/93 $14,090.81 4/30/93 $18,226.06
5/28/93 $14,454.44 5/28/93 $18,712.40
6/30/93 $14,496.40 6/30/93 $18,767.02
7/30/93 $14,426.03 7/30/93 $18,691.45
8/31/93 $14,946.77 8/31/93 $19,399.10
9/30/93 $14,827.14 9/30/93 $19,250.33
10/29/93 $15,110.24 10/29/93 $19,648.28
11/30/93 $14,926.23 11/30/93 $19,461.01
12/31/93 $15,251.79 12/31/93 $19,696.29
1/31/94 $15,641.56 1/31/94 $20,365.27
2/28/94 $15,367.27 2/28/94 $19,813.02
3/31/94 $14,616.60 3/31/94 $18,950.88
4/29/94 $14,870.99 4/29/94 $19,193.67
5/31/94 $14,718.35 5/31/94 $19,507.43
6/30/94 $14,253.18 6/30/94 $19,030.06
7/29/94 $14,742.40 7/29/94 $19,654.50
8/31/94 $15,209.72 8/31/94 $20,458.47
9/30/94 $14,778.91 9/30/94 $19,958.59
10/31/94 $14,918.27 10/31/94 $20,406.34
11/30/94 $14,309.51 11/30/94 $19,664.09
12/30/94 $14,441.53 12/30/94 $19,955.40
1/31/95 $14,698.08 1/31/95 $20,472.54
2/28/95 $15,111.88 2/28/95 $21,269.61
3/31/95 $15,492.57 3/31/95 $21,896.23
4/28/95 $15,950.44 4/28/95 $22,540.51
5/31/95 $16,483.23 5/31/95 $23,440.05
6/30/95 $16,816.22 6/30/95 $23,983.55
7/31/95 $17,243.33 7/31/95 $24,778.54
8/31/95 $17,167.96 8/31/95 $24,840.39
9/29/95 $17,904.92 9/29/95 $25,888.11
10/31/95 $17,955.46 10/31/95 $25,795.62
11/30/95 $18,620.78 11/30/95 $26,926.72
12/29/95 $18,898.71 12/29/95 $27,445.40
1/31/96 $19,481.64 1/31/96 $28,378.43
2/29/96 $19,692.84 2/29/96 $28,642.44
3/29/96 $19,844.91 3/29/96 $28,918.20
4/30/96 $20,133.25 4/30/96 $29,344.16
5/31/96 $20,760.83 5/31/96 $30,099.64
6/28/96 $20,905.00 6/28/96 $30,214.40
7/31/96 $20,181.20 7/31/96 $28,880.26
8/30/96 $20,462.21 8/30/96 $29,490.36
9/30/96 $21,501.07 9/30/96 $31,148.68
10/31/96 $21,945.80 10/31/96 $32,007.44
11/29/96 $23,493.81 11/29/96 $34,424.69
12/31/96 $23,108.95 12/31/96 $33,742.76
1/31/97 $24,695.03 1/31/97 $35,849.71
2/28/97 $24,721.61 2/28/97 $36,131.16
3/31/97 $23,768.19 3/31/97 $34,649.36
4/30/97 $25,386.52 4/30/97 $36,716.04
5/30/97 $26,818.13 5/30/97 $38,949.78
6/30/97 $27,946.52 6/30/97 $40,693.77
7/31/97 $29,658.62 7/31/97 $43,929.90
8/29/97 $28,133.78 8/29/97 $41,470.71
9/30/97 $29,418.75 9/30/97 $43,740.64
10/31/97 $28,515.62 10/31/97 $42,281.46
11/28/97 $29,642.30 11/28/97 $44,237.16
12/31/97 $30,111.74 12/31/97 $44,996.33
1/30/98 $30,702.53 1/30/98 $45,493.53
2/27/98 $32,620.30 2/27/98 $48,772.81
3/31/98 $34,130.88 3/31/98 $51,268.39
4/30/98 $34,650.23 4/30/98 $51,783.93
5/29/98 $34,149.11 5/29/98 $50,895.07
6/30/98 $35,578.67 6/30/98 $52,960.88
7/31/98 $35,468.63 7/31/98 $52,398.37
8/31/98 $30,819.56 8/31/98 $44,830.44
9/30/98 $32,779.14 9/30/98 $47,702.45
10/30/98 $34,847.37 10/30/98 $51,579.16
11/30/98 $37,025.90 11/30/98 $54,703.99
12/31/98 $38,796.12 12/31/98 $57,854.23
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 1998
- --------------------------------------------------------------------------------
<CAPTION>
Ten Year Five Year One Year Six Month
<S> <C> <C> <C> <C>
All American Equity Fund 14.52% 20.53% 28.84% 9.04%
----------------------------------------------------------------------------
S&P 500 Index 19.19% 24.05% 28.58% 9.24%
</TABLE>
Past performance is not predictive of future results. Investment
return and principal value may fluctuate so that shares, when
redeemed, may be worth more or less than their original cost. The S&P
500 Index is an unmanaged but commonly used measure of common stock
total return performance.
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
The fund's performance can be attributed to our top-down analysis of
macroeconomic factors, coupled with a bottom-up stock-picking criteria of
positive growth in earnings. After witnessing the financial crisis in Asia and
other parts of the world, we believe that the U.S. and Europe will lead
14
<PAGE>
- --------------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
the global economy going forward. We have started to focus on companies that
market primarily in the United States and Europe. As a result, we are
overweighting the technology, domestic financial and retail sectors. At the same
time, we started to cut back our holdings in commodities, energy and cyclical
sectors. This strategy has enabled us to avoid some of the hardest hit sectors
in 1998.
INVESTMENT HIGHLIGHTS
Most of our top holdings did very well. Microsoft was the largest holding and
performed extremely well in the second half of 1998. Its dominance in the
computer software sector is unparalleled, and we expect it to continue to do
well in 1999. IBM and Intel also did very well as the technology sector was
booming as companies boosted spending on new technology to deal with the Y2K
problem instead of trying to fix old equipment. We purchased significant
holdings in Fannie Mae, since it is shielded from global turmoil and the
housing market in the U.S. has been very strong.
CURRENT OUTLOOK
We remain positive about the U.S. market since the driving forces behind the
strength in the market are still very much intact. Money continues to flow into
the market, and the performance of the U.S. economy has surprised most market
watchers. We think, for the time being, it makes sense to focus on companies
with minimal emerging markets exposure. As a result, we do not expect to
drastically change the composition of the fund in the immediate future.
15
<PAGE>
- --------------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
MICROSOFT CORP. 4.51%
DATA PROCESSING & SOFTWARE
--------------------------------------------------------------------------
GENERAL ELECTRIC CO. 3.49%
HOUSEHOLD APPLIANCES
--------------------------------------------------------------------------
FANNIE MAE 2.85%
FINANCIAL SERVICES
--------------------------------------------------------------------------
IBM CORP. 2.21%
COMPUTER & OFFICE EQUIPMENT
--------------------------------------------------------------------------
MERCK & CO., INC. 2.21%
PHARMACEUTICALS
--------------------------------------------------------------------------
INTEL CORP. 2.13%
ELECTRONICS & COMPONENTS
--------------------------------------------------------------------------
PFIZER, INC. 2.09%
PHARMACEUTICALS
--------------------------------------------------------------------------
COCA-COLA CO. 1.86%
BEVERAGES
--------------------------------------------------------------------------
JOHNSON & JOHNSON CO. 1.79%
HEALTHCARE & EQUIPMENT
--------------------------------------------------------------------------
AMERICAN INTERNATIONAL GROUP 1.76%
INSURANCE
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
PHARMACEUTICALS 9.60%
TELECOMMUNICATIONS 8.74%
FINANCIAL SERVICES 7.68%
DATA PROCESSING & SOFTWARE 6.87%
COMPUTER & OFFICE EQUIPMENT 5.19%
16
<PAGE>
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The fund's primary objective is long-term capital appreciation. Current income
is a secondary consideration. The fund predominantly invests in companies that
derive at least 50% of their revenues from the ownership, construction,
management or sale of residential, commercial or industrial real estate. The
real estate sector is a hybrid asset class which embodies characteristics of
both the equity and fixed income markets.
PERFORMANCE
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
[Real Estate Fund mountain graph plotted from the data in the table below.]
<TABLE>
<CAPTION>
U.S. Global Investors Funds S & P 500 Composite DJ REIT Equity Total Morgan Stanley REIT Index
Real Estate Fund Index Return Index (S:BB RMS Index)
<S> <C> <C> <C> <C> <C> <C> <C>
Date Value Date Value Date Value Date Value
12/30/88 $10,000.00 12/30/88 $10,000.00 12/30/88 12/30/88
1/31/89 $10,186.61 1/31/89 $10,731.56 1/31/89 1/31/89
2/28/89 $10,307.35 2/28/89 $10,464.82 2/28/89 2/28/89
3/31/89 $10,592.76 3/31/89 $10,708.67 3/31/89 3/31/89
4/28/89 $10,933.04 4/28/89 $11,264.09 4/28/89 4/28/89
5/31/89 $11,481.89 5/31/89 $11,718.13 5/31/89 5/31/89
6/30/89 $11,372.12 6/30/89 $11,652.17 6/30/89 6/30/89
7/31/89 $11,706.92 7/31/89 $12,703.32 7/31/89 7/31/89
8/31/89 $11,762.72 8/31/89 $12,950.83 8/31/89 8/31/89
9/29/89 $11,573.00 9/29/89 $12,898.10 9/29/89 9/29/89
10/31/89 $10,981.52 10/31/89 $12,598.98 10/31/89 10/31/89
11/30/89 $10,769.47 11/30/89 $12,854.88 11/30/89 11/30/89
12/29/89 $10,735.99 12/29/89 $13,163.14 12/29/89 12/29/89
1/31/90 $9,973.33 1/31/90 $12,279.94 1/31/90 1/31/90
2/28/90 $10,031.99 2/28/90 $12,437.82 2/28/90 2/28/90
3/30/90 $10,008.53 3/30/90 $12,767.16 3/30/90 3/30/90
4/30/90 $9,902.93 4/30/90 $12,449.13 4/30/90 4/30/90
5/31/90 $9,973.33 5/31/90 $13,660.51 5/31/90 5/31/90
6/29/90 $9,938.13 6/29/90 $13,568.42 6/29/90 6/29/90
7/31/90 $9,558.18 7/31/90 $13,525.07 7/31/90 7/31/90
8/31/90 $8,643.92 8/31/90 $12,304.03 8/31/90 8/31/90
9/28/90 $8,014.62 9/28/90 $11,706.11 9/28/90 9/28/90
10/31/90 $7,670.29 10/31/90 $11,656.62 10/31/90 10/31/90
11/30/90 $8,145.23 11/30/90 $12,408.62 11/30/90 11/30/90
12/31/90 $8,608.29 12/31/90 $12,753.94 12/31/90 $10,000.00 12/31/90
1/31/91 $9,173.18 1/31/91 $13,307.98 1/31/91 $11,126.49 1/31/91
2/28/91 $10,106.46 2/28/91 $14,258.53 2/28/91 $11,460.24 2/28/91
3/28/91 $10,781.86 3/28/91 $14,603.47 3/28/91 $12,506.99 3/28/91
4/30/91 $11,137.98 4/30/91 $14,638.19 4/30/91 $12,756.80 4/30/91
5/31/91 $11,285.34 5/31/91 $15,267.51 5/31/91 $12,907.81 5/31/91
6/28/91 $10,855.54 6/28/91 $14,568.58 6/28/91 $12,577.79 6/28/91
7/31/91 $10,867.82 7/31/91 $15,247.04 7/31/91 $12,820.94 7/31/91
8/30/91 $10,843.26 8/30/91 $15,607.21 8/30/91 $12,720.66 8/30/91
9/30/91 $11,346.74 9/30/91 $15,345.93 9/30/91 $13,037.32 9/30/91
10/31/91 $11,260.78 10/31/91 $15,551.79 10/31/91 $12,829.30 10/31/91
11/29/91 $11,150.26 11/29/91 $14,926.88 11/29/91 $12,804.53 11/29/91
12/31/91 $13,372.94 12/31/91 $16,631.13 12/31/91 $13,800.09 12/31/91
1/31/92 $14,446.77 1/31/92 $16,321.58 1/31/92 $14,489.92 1/31/92
2/28/92 $14,346.88 2/28/92 $16,532.87 2/28/92 $14,122.97 2/28/92
3/31/92 $13,972.29 3/31/92 $16,211.71 3/31/92 $13,903.06 3/31/92
4/30/92 $13,472.83 4/30/92 $16,687.19 4/30/92 $13,856.60 4/30/92
5/29/92 $13,547.75 5/29/92 $16,768.79 5/29/92 $14,455.99 5/29/92
6/30/92 $12,885.97 6/30/92 $16,519.41 6/30/92 $14,280.72 6/30/92
7/31/92 $13,519.50 7/31/92 $17,193.72 7/31/92 $14,890.72 7/31/92
8/31/92 $12,391.82 8/31/92 $16,842.47 8/31/92 $14,939.44 8/31/92
9/30/92 $12,632.56 9/30/92 $17,040.46 9/30/92 $15,264.58 9/30/92
10/30/92 $13,050.69 10/30/92 $17,098.95 10/30/92 $15,283.58 10/30/92
11/30/92 $13,405.47 11/30/92 $17,679.57 11/30/92 $15,618.40 11/30/92
12/31/92 $14,000.98 12/31/92 $17,896.47 12/31/92 $16,061.27 12/31/92
1/29/93 $14,360.31 1/29/93 $18,045.94 1/29/93 $16,975.04 1/29/93
2/26/93 $14,219.15 2/26/93 $18,291.80 2/26/93 $17,990.30 2/26/93
3/31/93 $14,719.64 3/31/93 $18,677.50 3/31/93 $19,539.95 3/31/93
4/30/93 $13,821.32 4/30/93 $18,226.06 4/30/93 $18,805.92 4/30/93
5/28/93 $13,641.65 5/28/93 $18,712.40 5/28/93 $18,347.92 5/28/93
6/30/93 $14,103.65 6/30/93 $18,767.02 6/30/93 $19,092.89 6/30/93
7/30/93 $14,039.31 7/30/93 $18,691.45 7/30/93 $19,379.76 7/30/93
8/31/93 $14,399.62 8/31/93 $19,399.10 8/31/93 $19,804.26 8/31/93
9/30/93 $15,351.87 9/30/93 $19,250.33 9/30/93 $20,787.33 9/30/93
10/29/93 $15,055.90 10/29/93 $19,648.28 10/29/93 $20,350.65 10/29/93
11/30/93 $13,936.36 11/30/93 $19,461.01 11/30/93 $19,213.56 11/30/93
12/31/93 $14,026.44 12/31/93 $19,696.29 12/31/93 $19,203.43 12/31/93
1/31/94 $14,472.56 1/31/94 $20,365.27 1/31/94 $19,711.77 1/31/94
2/28/94 $14,682.49 2/28/94 $19,813.02 2/28/94 $20,578.45 2/28/94
3/31/94 $13,501.60 3/31/94 $18,950.88 3/31/94 $19,840.55 3/31/94
4/29/94 $13,711.53 4/29/94 $19,193.67 4/29/94 $20,126.84 4/29/94
5/31/94 $13,540.96 5/31/94 $19,507.43 5/31/94 $20,551.46 5/31/94
6/30/94 $13,016.12 6/30/94 $19,030.06 6/30/94 $20,141.91 6/30/94
7/29/94 $12,857.70 7/29/94 $19,654.50 7/29/94 $20,004.45 7/29/94
8/31/94 $13,068.92 8/31/94 $20,458.47 8/31/94 $20,027.80 8/31/94
9/30/94 $12,712.49 9/30/94 $19,958.59 9/30/94 $19,738.09 9/30/94
10/31/94 $12,144.85 10/31/94 $20,406.34 10/31/94 $18,987.45 10/31/94
11/30/94 $11,577.21 11/30/94 $19,664.09 11/30/94 $18,299.76 11/30/94
12/30/94 $12,395.67 12/30/94 $19,955.40 12/30/94 $19,855.50 12/30/94 $10,000.00
1/31/95 $11,981.15 1/31/95 $20,472.54 1/31/95 $19,300.52 1/31/95 $9,651.00
2/28/95 $12,449.16 2/28/95 $21,269.61 2/28/95 $19,722.49 2/28/95 $9,812.50
3/31/95 $12,302.07 3/31/95 $21,896.23 3/31/95 $19,757.53 3/31/95 $9,838.00
4/28/95 $12,382.30 4/28/95 $22,540.51 4/28/95 $19,635.63 4/28/95 $9,741.50
5/31/95 $12,930.54 5/31/95 $23,440.05 5/31/95 $20,482.08 5/31/95 $10,163.50
6/30/95 $13,157.87 6/30/95 $23,983.55 6/30/95 $20,891.53 6/30/95 $10,386.50
7/31/95 $13,399.54 7/31/95 $24,778.54 7/31/95 $21,159.14 7/31/95 $10,503.00
8/31/95 $13,775.48 8/31/95 $24,840.39 8/31/95 $21,364.99 8/31/95 $10,589.00
9/29/95 $14,017.15 9/29/95 $25,888.11 9/29/95 $21,809.63 9/29/95 $10,813.50
10/31/95 $13,708.35 10/31/95 $25,795.62 10/31/95 $21,248.43 10/31/95 $10,475.50
11/30/95 $13,882.89 11/30/95 $26,926.72 11/30/95 $21,447.35 11/30/95 $10,609.50
12/29/95 $14,742.18 12/29/95 $27,445.40 12/29/95 $22,811.63 12/29/95 $11,290.50
1/31/96 $14,810.56 1/31/96 $28,378.43 1/31/96 $23,153.49 1/31/96 $11,393.50
2/29/96 $14,796.88 2/29/96 $28,642.44 2/29/96 $23,388.06 2/29/96 $11,528.00
3/29/96 $14,960.99 3/29/96 $28,918.20 3/29/96 $23,386.72 3/29/96 $11,517.50
4/30/96 $15,097.74 4/30/96 $29,344.16 4/30/96 $23,365.29 4/30/96 $11,512.50
5/31/96 $15,384.93 5/31/96 $30,099.64 5/31/96 $23,953.18 5/31/96 $11,788.50
6/28/96 $15,439.63 6/28/96 $30,214.40 6/28/96 $24,400.36 6/28/96 $12,009.50
7/31/96 $15,383.33 7/31/96 $28,880.26 7/31/96 $24,489.76 7/31/96 $12,034.00
8/30/96 $16,030.76 8/30/96 $29,490.36 8/30/96 $25,450.22 8/30/96 $12,505.00
9/30/96 $16,495.21 9/30/96 $31,148.68 9/30/96 $25,984.09 9/30/96 $12,789.00
10/31/96 $16,931.52 10/31/96 $32,007.44 10/31/96 $26,717.87 10/31/96 $13,132.50
11/29/96 $17,621.16 11/29/96 $34,424.69 11/29/96 $27,960.94 11/29/96 $13,754.00
12/31/96 $19,394.54 12/31/96 $33,742.76 12/31/96 $31,028.50 12/31/96 $15,343.00
1/31/97 $19,621.54 1/31/97 $35,849.71 1/31/97 $31,245.81 1/31/97 $15,362.00
2/28/97 $19,607.35 2/28/97 $36,131.16 2/28/97 $31,148.61 2/28/97 $15,303.50
3/31/97 $19,664.11 3/31/97 $34,649.36 3/31/97 $31,203.05 3/31/97 $15,377.00
4/30/97 $18,940.53 4/30/97 $36,716.04 4/30/97 $30,232.89 4/30/97 $14,877.50
5/30/97 $19,451.29 5/30/97 $38,949.78 5/30/97 $31,125.37 5/30/97 $15,324.50
6/30/97 $20,448.68 6/30/97 $40,693.77 6/30/97 $32,775.01 6/30/97 $16,134.50
7/31/97 $21,340.26 7/31/97 $43,929.90 7/31/97 $33,654.78 7/31/97 $16,572.50
8/29/97 $21,182.07 8/29/97 $41,470.71 8/29/97 $33,532.23 8/29/97 $16,460.50
9/30/97 $23,238.45 9/30/97 $43,740.64 9/30/97 $36,710.72 9/30/97 $18,016.50
10/31/97 $22,490.68 10/31/97 $42,281.46 10/31/97 $35,607.01 10/31/97 $17,529.50
11/28/97 $22,821.42 11/28/97 $44,237.16 11/28/97 $36,354.41 11/28/97 $17,789.50
12/31/97 $23,133.47 12/31/97 $44,996.33 12/31/97 $37,255.71 12/31/97 $18,193.50
1/30/98 $22,761.31 1/30/98 $45,493.53 1/30/98 $36,914.33 1/30/98 $17,933.50
2/27/98 $22,493.36 2/27/98 $48,772.81 2/27/98 $36,204.83 2/27/98 $17,645.00
3/31/98 $23,029.27 3/31/98 $51,268.39 3/31/98 $37,047.04 3/31/98 $18,062.50
4/30/98 $22,061.65 4/30/98 $51,783.93 4/30/98 $35,677.59 4/30/98 $17,423.00
5/29/98 $21,615.06 5/29/98 $50,895.07 5/29/98 $35,386.86 5/29/98 $17,271.00
6/30/98 $20,733.78 6/30/98 $52,960.88 6/30/98 $35,350.11 6/30/98 $17,269.00
7/31/98 $19,991.13 7/31/98 $52,398.37 7/31/98 $32,894.99 7/31/98 $16,057.50
8/31/98 $18,005.65 8/31/98 $44,830.44 8/31/98 $29,742.66 8/31/98 $14,545.00
9/30/98 $18,596.75 9/30/98 $47,702.45 9/30/98 $31,656.05 9/30/98 $15,446.00
10/30/98 $18,520.97 10/30/98 $51,579.16 10/30/98 $31,097.05 10/30/98 $15,154.00
11/30/98 $19,081.75 11/30/98 $54,703.99 11/30/98 $31,526.38 11/30/98 $15,392.50
12/31/98 $18,890.16 12/31/98 $57,854.23 12/31/98 $30,936.53 12/31/98 $15,118.00
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 1998
- --------------------------------------------------------------------------------
<CAPTION>
Ten Year Five Year One Year Six Month
<S> <C> <C> <C> <C>
Real Estate Fund 6.57% 6.13% (18.34%) (8.89%)
----------------------------------------------------------------------------
S&P 500 Index 19.19% 24.05% 28.58% 9.24%
----------------------------------------------------------------------------
Dow Jones Equity REIT Total
Return Index n/a 10.01% (16.96%) (12.49%)
----------------------------------------------------------------------------
Morgan Stanley REIT Index n/a n/a (16.90%) (12.46%)
----------------------------------------------------------------------------
</TABLE>
Past performance is not predictive of future results. Investment return
and principal value may fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. The Dow Jones Equity REIT
Total Return Index is an index comprised of REITs traded publicly on
the New York, American, and NASDAQ Stock Exchanges. The components of
the index use the equity investment structure and also reinvest all
regular cash dividends. The Morgan Stanley REIT Index is a total return
index composed of most of the actively traded real estate investment
trusts and is designed to be a measure of real estate equity
performance.
- --------------------------------------------------------------------------------
17
<PAGE>
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
As the year progressed investors continued to favor large-cap stocks over small-
and mid-caps. When the crisis of confidence in the global economy peaked in
October, real estate stocks fell with the rest of the market. During the strong
market recovery in the fourth quarter, technology and large-cap issues led the
rally, while real estate and other economically sensitive stocks did not
participate.
We believe the major determinant of real estate value is the economy. As the
economic outlook weakened, REITs and real estate stocks fell out of favor and
investors focused more on the popular technology stocks and safe, large-cap
stocks.
INVESTMENT HIGHLIGHTS
Among the different property types, we continue to favor the office sector. Last
year, as participants became more optimistic about new development, the capital
markets realized that while vacancies were low and rents had risen, current
rents did not equate to replacement rents. We estimate that most central
business districts have a current rent of $25 per square foot, but need $40 or
more per square foot for favorable development returns. We expect a shortage of
high quality space to develop over the next several years and rents to rise
significantly.
We have reduced our exposure to high-end hotels as we believe the high debt
levels of some companies, resulting from the 1998 acquisition binge, will lead
to increased competition to fill rooms.
We continue to view residential REITs as core holdings in the portfolio because
of their stable fundamentals. We are also searching for special situations where
new management or restructuring can add value.
CURRENT OUTLOOK
The real estate industry is in very good fundamental shape. Rents are rolling at
higher rates, vacancies are low and no new supply is coming on stream.
Generally, companies are in good condition financially and have low debt.
Dividend yields are high, cash flows are growing and multiples are at the low
end of their historical range. In addition, we believe the stocks now trade
below their net asset value and have lower price risk than the general market.
In spite of the poor performance of real estate stocks in 1998, we believe in
the continuing story of real estate securitization. We expect that these
securities should trade above their net asset value and that skilled management
can be an excellent source of added value for these operating businesses. We
remain focused on large, well-managed companies in our security selection.
18
<PAGE>
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
MEDITRUST 5.52%
HEALTHCARE
--------------------------------------------------------------------------
APARTMENT INVESTMENT & MANAGEMENT CO. 4.98%
APARTMENTS
--------------------------------------------------------------------------
BOSTON PROPERTIES, INC. 4.62%
OFFICE PROPERTY MANAGEMENT
--------------------------------------------------------------------------
EQUITY OFFICE PROPERTIES TRUST 4.53%
OFFICE PROPERTY MANAGEMENT
--------------------------------------------------------------------------
RECKSON ASSOCIATES REALTY CORP. 4.47%
WAREHOUSE/INDUSTRIAL
--------------------------------------------------------------------------
SIMON PROPERTY GROUP, INC. 4.42%
REGIONAL MALLS
--------------------------------------------------------------------------
ALEXANDRIA REAL ESTATE EQUITIES, INC. 4.36%
OFFICE PROPERTY MANAGEMENT
--------------------------------------------------------------------------
EQUITY RESIDENT PROPERTY TRUST 4.32%
APARTMENTS
--------------------------------------------------------------------------
ENTERTAINMENT PROPERTIES TRUST 3.88%
DIVERSIFIED
--------------------------------------------------------------------------
SPIEKER PROPERTIES, INC. 3.87%
DIVERSIFIED
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
OFFICE PROPERTY MANAGEMENT 20.04%
APARTMENTS 14.51%
DIVERSIFIED 14.14%
REGIONAL MALLS 5.96%
HEALTHCARE 5.52%
19
<PAGE>
- --------------------------------------------------------------------------------
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The fund's objective is to achieve capital appreciation by focusing on the
economic growth in the Greater China Region, including China, Hong Kong,
Singapore and Taiwan. The fund seeks capital appreciation and does not emphasize
income.
PERFORMANCE
- --------------------------------------------------------------------------------
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
[China Region Opportunity Fund mountain graph plotted from the data in the table
below.]
<TABLE>
<CAPTION>
U.S. Global Investors Funds IFCI China Index Hang Seng Index (S:BB)
China Region Opportunity
<S> <C> <C> <C> <C> <C>
Date Value Date Value Date Value
2/9/94 $10,000.00 1/31/94 $10,000.00 1/31/94 $10,000.00
2/28/94 $9,465.73 2/28/94 $9,499.49 2/28/94 $9,062.60
3/31/94 $8,155.24 3/31/94 $7,780.03 3/31/94 $7,860.97
4/29/94 $8,094.61 4/29/94 $7,383.05 4/29/94 $7,805.39
5/31/94 $8,417.99 5/31/94 $7,811.94 5/31/94 $8,316.83
6/30/94 $7,852.07 6/30/94 $6,846.73 6/30/94 $7,624.61
7/29/94 $8,267.47 7/29/94 $7,713.08 7/29/94 $8,255.24
8/31/94 $8,774.06 8/31/94 $8,243.17 8/31/94 $8,644.01
9/30/94 $8,834.85 9/30/94 $8,451.00 9/30/94 $8,288.69
10/31/94 $8,662.41 10/31/94 $8,348.25 10/31/94 $8,397.52
11/30/94 $7,698.79 11/30/94 $7,095.04 11/30/94 $7,370.28
12/30/94 $7,191.63 12/30/94 $6,089.36 12/30/94 $7,130.69
1/31/95 $6,430.88 1/31/95 $5,174.75 1/31/95 $6,392.13
2/28/95 $6,735.18 2/28/95 $5,760.10 2/28/95 $7,249.51
3/31/95 $6,714.89 3/31/95 $5,854.28 3/31/95 $7,476.02
4/28/95 $6,441.02 4/28/95 $5,129.60 4/28/95 $7,278.68
5/31/95 $7,019.19 5/31/95 $5,897.87 5/31/95 $8,189.57
6/30/95 $6,846.75 6/30/95 $5,744.53 6/30/95 $8,014.73
7/31/95 $7,072.58 7/31/95 $6,006.85 7/31/95 $8,229.65
8/31/95 $6,990.46 8/31/95 $5,728.96 8/31/95 $7,991.51
9/29/95 $6,939.14 9/29/95 $5,605.20 9/29/95 $8,397.60
10/31/95 $6,692.41 10/31/95 $5,291.51 10/31/95 $8,516.04
11/30/95 $6,312.05 11/30/95 $4,786.33 11/30/95 $8,542.98
12/29/95 $6,178.40 12/29/95 $4,534.13 12/29/95 $8,769.37
1/31/96 $6,642.56 1/31/96 $4,977.82 1/31/96 $9,889.16
2/29/96 $6,766.33 2/29/96 $5,304.74 2/29/96 $9,685.44
3/29/96 $6,580.67 3/29/96 $5,025.30 3/29/96 $9,538.77
4/30/96 $6,549.73 4/30/96 $4,962.25 4/30/96 $9,545.15
5/31/96 $6,621.93 5/31/96 $5,097.69 5/31/96 $9,806.49
6/28/96 $6,704.44 6/28/96 $5,109.36 6/28/96 $9,594.22
7/31/96 $6,621.03 7/31/96 $4,970.81 7/31/96 $9,298.69
8/30/96 $6,631.46 8/30/96 $5,142.06 8/30/96 $9,714.46
9/30/96 $6,662.74 9/30/96 $5,120.26 9/30/96 $10,361.63
10/31/96 $6,683.69 10/31/96 $5,071.22 10/31/96 $10,862.31
11/29/96 $7,207.49 11/29/96 $5,548.38 11/29/96 $11,660.06
12/31/96 $7,898.91 12/31/96 $6,389.04 12/31/96 $11,710.13
1/31/97 $7,877.95 1/31/97 $6,333.00 1/31/97 $11,597.25
2/28/97 $8,097.95 2/28/97 $6,430.29 2/28/97 $11,664.23
3/31/97 $7,982.71 3/31/97 $6,302.64 3/31/97 $10,911.72
4/30/97 $8,454.13 4/30/97 $7,219.58 4/30/97 $11,232.94
5/30/97 $8,894.13 5/30/97 $7,121.51 5/30/97 $12,847.38
6/30/97 $9,009.36 6/30/97 $7,205.57 6/30/97 $13,229.53
7/31/97 $9,679.83 7/31/97 $8,320.23 7/31/97 $14,247.13
8/29/97 $9,795.06 8/29/97 $9,643.50 8/29/97 $12,305.41
9/30/97 $9,239.83 9/30/97 $7,651.59 9/30/97 $13,101.14
10/31/97 $7,018.92 10/31/97 $6,274.62 10/31/97 $9,248.51
11/28/97 $6,337.98 11/28/97 $4,963.03 11/28/97 $9,164.19
12/31/97 $6,125.32 12/31/97 $4,863.39 12/31/97 $9,334.68
1/30/98 $4,784.09 1/30/98 $3,457.62 1/30/98 $8,054.62
2/27/98 $6,114.76 2/27/98 $4,755.97 2/27/98 $9,994.49
3/31/98 $6,114.76 3/31/98 $4,464.86 3/31/98 $10,027.56
4/30/98 $5,618.40 4/30/98 $3,914.53 4/30/98 $9,039.49
5/29/98 $4,984.74 5/29/98 $3,614.85 5/29/98 $7,777.96
6/30/98 $4,319.41 6/30/98 $3,234.22 6/30/98 $7,437.18
7/31/98 $3,654.07 7/31/98 $2,512.65 7/31/98 $6,908.84
8/31/98 $3,009.85 8/31/98 $1,952.21 8/31/98 $6,333.27
9/30/98 $3,654.07 9/30/98 $2,601.39 9/30/98 $6,862.93
10/30/98 $4,150.43 10/30/98 $2,583.48 10/30/98 $8,840.36
11/30/98 $4,277.16 11/30/98 $2,621.62 11/30/98 $9,055.72
12/31/98 $4,087.07 12/31/98 $2,388.11 12/31/98 $8,747.77
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 1998
- --------------------------------------------------------------------------------
<CAPTION>
Inception One Year Six Month
<S> <C> <C> <C>
China Region Opportunity Fund
(Inception 2/10/94) (16.71%) (33.28%) (5.38%)
----------------------------------------------------------------------------
Hang Seng 100 Index (2.68%) (6.29%) 17.62%
----------------------------------------------------------------------------
International Finance Corporation
China Index (25.26%) (50.90%) (26.16%)
</TABLE>
Past performance is not predictive of future results. Investment return
and principal value may fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. The Hang Seng 100 Index is a
capitalization-weighted index. The index is comprised of the 100 highest
companies, in terms of market capitalization and turnover, listed on The
Stock Exchange of Hong Kong Limited. The International Finance
Corporation China Index is one global index in a series representing a
large part of the market and shows trends in the markets from the
perspective of local investors.
- --------------------------------------------------------------------------------
20
<PAGE>
- --------------------------------------------------------------------------------
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
The fund's poor performance can be attributed to heavy exposure to Chinese
companies. Although the larger and more liquid markets worldwide rebounded in
October after the Federal Reserve cut interest rates and the Japanese yen
started to recover, Chinese shares remained under pressure because of lower
liquidity and less developed corporate governance. Even though Chinese-listed
companies were trading at much lower valuations compared to stocks in Hong Kong
and Singapore, there was lack of interest from foreign investors. While our
forecast for the Chinese economy and Chinese currency was largely on the mark,
we underestimated the difficulty of the financial restructuring in China and
investors' unwillingness to invest in Chinese stocks.
INVESTMENT HIGHLIGHTS
Our strategy has been to hold quality companies at times of turmoil and
uncertainty. We sold some of the weaker Chinese companies and increased our
concentration on a few stronger and more established companies, such as Hong
Kong and Shanghai Banking Corp. and Guangdong Kelon Electrical. In terms of
geographic allocation, we have further reduced our holdings in Chinese shares
listed on the Chinese Stock Exchange and Chinese shares listed on the Hong Kong
Stock Exchange. We also increased our holdings in Hong Kong companies.
CURRENT OUTLOOK
We are restructuring our top-down macroeconomic strategy to more quickly
identify liquidity and sentiment changes between the different countries and
markets in Asia. We believe that this new strategy should deliver more
consistent superior performance.
We expect the market to remain difficult in the short term as investors are
waiting for the restructuring and the economy-boosting measures by the Chinese
government to take effect. However, with a lot of Chinese stocks trading below
their replacement cost, we think they offer great long-term value. In the
meantime, we will continue to maintain our holdings in strong companies and wait
patiently.
21
<PAGE>
- --------------------------------------------------------------------------------
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
HSBC HOLDINGS LTD. 10.00%
BANKING/FINANCIAL SERVICES
--------------------------------------------------------------------------
GUANGDONG KELON ELECTRONICS HOLDINGS 7.21%
HOUSEHOLD APPLIANCES
--------------------------------------------------------------------------
HUTCHINSON WHAMPOA 4.33%
CONGLOMERATES
--------------------------------------------------------------------------
LI & FUNG LTD. 3.52%
APPAREL
--------------------------------------------------------------------------
NG FUNG HONG LTD. 3.48%
GROCERIES - WHOLESALE
--------------------------------------------------------------------------
VARITRONIX INTERNATIONAL 3.19%
ELECTRONIC EQUIPMENT
--------------------------------------------------------------------------
CITIC PACIFIC LTD. 3.14%
CONGLOMERATES
--------------------------------------------------------------------------
SHANGHAI DAZHONG 3.02%
MOTOR VEHICLES & TRANSPORTATION
--------------------------------------------------------------------------
SHANGHAI INDUSTRIAL HOLDINGS LTD. 2.95%
CONGLOMERATES
--------------------------------------------------------------------------
CHINA INTERNATIONAL MARINE CONTAINER 2.67%
WATER TRANSPORTATION & SERVICES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
CONGLOMERATES 13.62%
REAL ESTATE DEVELOPERS 10.02%
BANKING/FINANCIAL SERVICES 10.00%
HOUSEHOLD APPLIANCES 8.19%
UTILITIES 6.05%
22
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The fund is a diversified natural resources fund with the principal objective of
achieving long-term growth of capital, while providing protection against
inflation and monetary instability. The fund invests in companies involved in
the production and processing of petroleum, natural gas, industrial commodities,
metals, minerals, paper and forest products from around the globe.
PERFORMANCE
- --------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
[Global Resources Fund mountain graph plotted from the data in the table below.]
<TABLE>
<CAPTION>
U.S. Global Investors Funds Mpal US:Equity Natural Dow Jones Basic
Global Resources Fund Resrce (NX) Index Materials and Energy
<S> <C> <C> <C> <C> <C>
Date Value Date Value Date Value
---- ----- ---- ----- ---- -----
12/30/88 $10,000.00 12/30/88 $10,000.00 12/30/88
1/31/89 $10,735.29 1/31/89 $10,717.30 1/31/89
2/28/89 $10,735.29 2/28/89 $10,673.42 2/28/89
3/31/89 $10,735.29 3/31/89 $10,899.48 3/31/89
4/28/89 $10,588.24 4/28/89 $11,231.09 4/28/89
5/31/89 $10,441.18 5/31/89 $11,293.09 5/31/89
6/30/89 $10,441.18 6/30/89 $11,306.64 6/30/89
7/31/89 $11,029.41 7/31/89 $11,923.96 7/31/89
8/31/89 $11,617.65 8/31/89 $12,429.02 8/31/89
9/29/89 $11,617.65 9/29/89 $12,359.04 9/29/89
10/31/89 $11,323.53 10/31/89 $11,928.59 10/31/89
11/30/89 $12,352.94 11/30/89 $12,555.24 11/30/89
12/29/89 $12,205.88 12/29/89 $13,170.28 12/29/89
1/31/90 $11,875.99 1/31/90 $12,619.25 1/31/90
2/28/90 $11,546.10 2/28/90 $12,857.39 2/28/90
3/30/90 $11,216.22 3/30/90 $12,987.70 3/30/90
4/30/90 $10,061.61 4/30/90 $12,319.85 4/30/90
5/31/90 $10,721.38 5/31/90 $13,299.85 5/31/90
6/29/90 $10,391.49 6/29/90 $13,013.40 6/29/90
7/31/90 $11,216.22 7/31/90 $13,663.26 7/31/90
8/31/90 $11,051.27 8/31/90 $13,208.46 8/31/90
9/28/90 $10,886.33 9/28/90 $12,965.29 9/28/90
10/31/90 $9,913.16 10/31/90 $12,189.21 10/31/90
11/30/90 $9,929.65 11/30/90 $12,304.22 11/30/90
12/31/90 $10,259.54 12/31/90 $12,179.81 12/31/90
1/31/91 $9,582.69 1/31/91 $11,962.14 1/31/91
2/28/91 $10,027.99 2/28/91 $12,988.57 2/28/91
3/28/91 $9,921.12 3/28/91 $12,823.10 3/28/91
4/30/91 $10,027.99 4/30/91 $12,875.44 4/30/91
5/31/91 $10,562.34 5/31/91 $13,190.74 5/31/91
6/28/91 $10,259.54 6/28/91 $12,556.31 6/28/91
7/31/91 $10,704.83 7/31/91 $13,051.78 7/31/91
8/30/91 $10,615.77 8/30/91 $13,246.64 8/30/91
9/30/91 $10,597.96 9/30/91 $13,000.65 9/30/91
10/31/91 $10,900.76 10/31/91 $13,289.99 10/31/91
11/29/91 $10,544.53 11/29/91 $12,455.80 11/29/91
12/31/91 $10,776.08 12/31/91 $12,615.70 12/31/91
1/31/92 $10,831.63 1/31/92 $12,543.50 1/31/92
2/28/92 $10,942.72 2/28/92 $12,628.04 2/28/92
3/31/92 $10,646.47 3/31/92 $12,182.63 3/31/92
4/30/92 $10,794.59 4/30/92 $12,614.15 4/30/92
5/29/92 $11,053.81 5/29/92 $13,014.88 5/29/92
6/30/92 $10,702.02 6/30/92 $12,578.73 6/30/92
7/31/92 $10,831.63 7/31/92 $13,146.66 7/31/92
8/31/92 $10,516.86 8/31/92 $13,120.83 8/31/92
9/30/92 $10,498.34 9/30/92 $13,231.21 9/30/92
10/30/92 $10,368.74 10/30/92 $12,978.04 10/30/92
11/30/92 $10,331.70 11/30/92 $12,812.37 11/30/92
12/31/92 $10,479.83 12/31/92 $12,959.25 12/31/92 $10,000.00
1/29/93 $10,256.06 1/29/93 $13,202.82 1/29/93 $10,181.08
2/26/93 $10,442.53 2/26/93 $13,859.60 2/26/93 $10,641.92
3/31/93 $10,908.72 3/31/93 $14,607.23 3/31/93 $10,930.74
4/30/93 $11,095.19 4/30/93 $14,961.99 4/30/93 $11,143.74
5/28/93 $11,244.37 5/28/93 $15,498.52 5/28/93 $11,342.02
6/30/93 $11,393.55 6/30/93 $15,609.10 6/30/93 $11,185.46
7/30/93 $11,505.43 7/30/93 $15,653.99 7/30/93 $11,268.36
8/31/93 $11,878.38 8/31/93 $16,336.13 8/31/93 $11,691.95
9/30/93 $11,822.44 9/30/93 $15,909.91 9/30/93 $11,600.02
10/29/93 $12,344.57 10/29/93 $16,132.01 10/29/93 $11,516.40
11/30/93 $11,785.15 11/30/93 $15,243.14 11/30/93 $11,200.90
12/31/93 $12,419.16 12/31/93 $15,605.68 12/31/93 $11,382.83
1/31/94 $13,011.45 1/31/94 $16,320.36 1/31/94 $12,111.06
2/28/94 $12,552.90 2/28/94 $15,933.80 2/28/94 $11,793.65
3/31/94 $11,826.86 3/31/94 $15,078.54 3/31/94 $11,321.59
4/29/94 $11,559.37 4/29/94 $15,445.58 4/29/94 $11,581.83
5/31/94 $11,559.37 5/31/94 $15,707.47 5/31/94 $11,837.63
6/30/94 $10,967.07 6/30/94 $15,618.90 6/30/94 $11,556.99
7/29/94 $11,291.88 7/29/94 $16,108.53 7/29/94 $12,052.13
8/31/94 $11,635.79 8/31/94 $16,270.98 8/31/94 $12,305.80
9/30/94 $12,094.35 9/30/94 $16,354.78 9/30/94 $12,143.22
10/31/94 $11,903.28 10/31/94 $16,458.05 10/31/94 $12,468.09
11/30/94 $11,215.45 11/30/94 $15,271.65 11/30/94 $11,711.24
12/30/94 $11,215.45 12/30/94 $15,226.23 12/30/94 $11,812.96
1/31/95 $10,630.47 1/31/95 $14,646.62 1/31/95 $11,732.27
2/28/95 $10,751.50 2/28/95 $15,165.57 2/28/95 $12,400.29
3/31/95 $11,054.08 3/31/95 $15,918.84 3/31/95 $12,968.09
4/28/95 $11,356.66 4/28/95 $16,519.31 4/28/95 $13,269.80
5/31/95 $11,497.86 5/31/95 $16,807.58 5/31/95 $13,767.64
6/30/95 $11,618.89 6/30/95 $16,806.91 6/30/95 $13,710.32
7/31/95 $11,941.63 7/31/95 $17,342.83 7/31/95 $14,103.06
8/31/95 $12,123.18 8/31/95 $17,446.71 8/31/95 $13,921.33
9/29/95 $12,082.84 9/29/95 $17,395.91 9/29/95 $14,083.60
10/31/95 $11,538.20 10/31/95 $16,535.62 10/31/95 $13,694.25
11/30/95 $11,659.23 11/30/95 $17,300.63 11/30/95 $14,452.23
12/29/95 $12,224.04 12/29/95 $18,133.61 12/29/95 $14,926.06
1/31/96 $12,673.75 1/31/96 $18,786.09 1/31/96 $15,313.82
2/29/96 $12,816.84 2/29/96 $19,135.48 2/29/96 $15,401.84
3/29/96 $13,532.30 3/29/96 $20,092.60 3/29/96 $16,311.93
4/30/96 $14,329.52 4/30/96 $21,200.15 4/30/96 $16,636.56
5/31/96 $14,554.37 5/31/96 $21,533.17 5/31/96 $16,552.89
6/28/96 $14,268.19 6/28/96 $21,159.29 6/28/96 $16,379.29
7/31/96 $13,654.94 7/31/96 $20,226.86 7/31/96 $15,763.99
8/30/96 $14,145.54 8/30/96 $21,467.95 8/30/96 $16,259.15
9/30/96 $14,717.90 9/30/96 $21,944.29 9/30/96 $16,895.85
10/31/96 $15,412.92 10/31/96 $22,822.03 10/31/96 $17,604.54
11/29/96 $16,230.58 11/29/96 $23,789.21 11/29/96 $18,458.65
12/31/96 $16,394.11 12/31/96 $23,854.50 12/31/96 $18,380.24
1/31/97 $16,996.15 1/31/97 $24,352.45 1/31/97 $19,227.07
2/28/97 $16,069.93 2/28/97 $23,476.25 2/28/97 $18,731.70
3/31/97 $15,954.16 3/31/97 $22,988.51 3/31/97 $19,204.28
4/30/97 $15,537.36 4/30/97 $22,679.04 4/30/97 $19,432.75
5/30/97 $17,019.31 5/30/97 $24,563.61 5/30/97 $20,701.68
6/30/97 $16,996.15 6/30/97 $24,610.92 6/30/97 $21,250.42
7/31/97 $18,408.64 7/31/97 $26,057.66 7/31/97 $22,908.76
8/29/97 $19,427.48 8/29/97 $26,498.65 8/29/97 $22,404.03
9/30/97 $21,140.99 9/30/97 $28,223.64 9/30/97 $23,444.38
10/31/97 $20,029.53 10/31/97 $26,666.62 10/31/97 $22,655.39
11/28/97 $16,810.91 11/28/97 $24,514.79 11/28/97 $22,330.60
12/31/97 $15,942.58 12/31/97 $24,295.98 12/31/97 $22,128.63
1/30/98 $14,049.73 1/30/98 $23,365.58 1/30/98 $21,218.38
2/27/98 $14,369.65 2/27/98 $24,248.70 2/27/98 $22,695.43
3/31/98 $14,342.99 3/31/98 $25,051.08 3/31/98 $23,660.96
4/30/98 $13,969.75 4/30/98 $25,786.69 4/30/98 $24,766.29
5/29/98 $12,716.74 5/29/98 $23,793.53 5/29/98 $23,852.30
6/30/98 $11,916.94 6/30/98 $22,415.60 6/30/98 $23,366.90
7/31/98 $10,983.85 7/31/98 $20,127.25 7/31/98 $21,850.81
8/31/98 $9,224.30 8/31/98 $16,364.02 8/31/98 $19,401.14
9/30/98 $10,210.71 9/30/98 $18,971.88 9/30/98 $21,740.55
10/30/98 $10,583.95 10/30/98 $19,580.82 10/30/98 $22,228.86
11/30/98 $10,290.69 11/30/98 $18,800.29 11/30/98 $22,482.23
12/31/98 $9,801.99 12/31/98 $18,424.28 12/31/98 $22,116.71
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 1998
- --------------------------------------------------------------------------------
<CAPTION>
Ten Year Five Year One Year Six Month
<S> <C> <C> <C> <C>
Global Resources Fund (0.20%) (4.62%) (38.52%) (17.75%)
----------------------------------------------------------------------------
Dow Jones Basic Materials
and Energy Index n/a 14.21% (0.05%) (5.35%)
----------------------------------------------------------------------------
Micropal US: Equity Natural
Resources Funds Index 6.30% 3.38% (24.17%) (17.81%)
</TABLE>
Past performance is not predictive of future results. Investment return
and principal value may fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. The Dow Jones Basic
Materials and Energy Index is a combination of the Dow Jones Basic
Materials Index and the Dow Jones Energy Index allocated based on their
respective market capitalization weightings. The Micropal US: Equity
Natural Resources Fund Index is composed of funds that invest the
majority of their portfolios in equity shares of natural resource
companies.
- --------------------------------------------------------------------------------
23
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
Weakness in commodity prices has not been restricted to oil. The CRB/ Bridge
Index of a broad basket of commodities fell another 10% over the last six
months, reaching its lowest level in more than twenty years. Contributing to
this weakness has been a strong U.S. dollar. The currency devaluations of Asia,
Russia, and Brazil have dramatically lowered the cost of imported basic
materials to U.S. industrial companies. Steel imports alone for 1998 were 30%
higher than 1997 levels.
Asia represents 30% of the world's oil consumption and the economic turndown in
late 1997 and the bottom in 1998 had a material impact on basic metals and
commodity prices, like oil. It has been calculated that the low oil prices have
been like a $30 billion tax cut for consumers since gas prices are at a record
20-year low.
INVESTMENT HIGHLIGHTS
A top-down overview of the natural resources sector shows an industry that is
abundantly oversupplied with cheap oil and basic materials. For U.S.
manufacturers and consumers, this has translated into an economy that has been
stronger than expected, despite downward economic pressures from Asia, Russia
and Latin America. A milder than expected winter has also aggravated the natural
gas and heating oil markets. The top-down picture does not support an investment
thesis that favors an aggressive investment scenario.
As a consequence, we have actively repositioned the fund over the last six
months. Oil and gas service and exploration companies have been trimmed from the
portfolio in favor of the international oil companies. Mergers and acquisitions
between the senior oil companies is currently the dominant investment theme.
Exxon, the largest oil company in the S&P 500, is proposing to merge with Mobil,
the second largest energy player, for $86 billion which would place the new
company as the third largest company in America. British Petroleum and Amoco
recently merged to form BP Amoco. The same trend is taking place
internationally. Total S.A. of France purchased Petrofina of Belgium and
more recently, Repsol of Spain and YPF of Argentina are trying to strike a
deal. With a bottom-up approach, we have tried to pick the best stocks, within
the context of the market, to include in the portfolio.
24
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
CURRENT OUTLOOK
There is very little price risk in the natural resources sector. We are at
20-year lows for natural resources as measured by the CRB/Bridge Commodity
Index. Cheap energy and commodity prices certainly improve the economics of most
capital investment plans. Add to that an environment where inflation projections
are very tame. However, what is currently missing is confidence that world
economic growth has not been derailed.
It appears that Asia has bottomed economically and should improve over the next
several years as this region rebuilds its economy. This is bullish for raw
materials and oil.
Going forward, our goal is to beat the Dow Jones Basic Materials and Energy
Index, which is approximately 70% Energy and 30% Basic Materials. Over the past
five years, this index outperformed the Lipper Natural Resources Fund Index by
an average annual performance of 737 basis points per year as of December 31,
1998.
Our investment focus is on companies that can earn a return on their investment
that exceeds their cost of capital. Companies that are highly leveraged, have
high cost structures, or depend on projects that are not economically viable at
today's prices are not on our buy list. Given the long-term demand growth for
energy, we believe that oil is at unsustainable low levels and will recover in
the next two years. Oil is cyclical and is currently at the bottom of the
trough. We expect the most fundamentally sound companies to consolidate their
position in this difficult market and emerge as winners when this downturn
eventually ends, as it always does.
25
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
BRITISH PETROLEUM PLC 5.19%
PETROLEUM PRODUCTION & REFINING
--------------------------------------------------------------------------
EXXON CORP. 3.85%
PETROLEUM PRODUCTION & REFINING
--------------------------------------------------------------------------
MOBIL CORP. 3.10%
PETROLEUM PRODUCTION & REFINING
--------------------------------------------------------------------------
TOTAL S.A. 3.03%
PETROLEUM PRODUCTION & REFINING
--------------------------------------------------------------------------
CONOCO, INC. 2.57%
OIL & GAS EXTRACTION
--------------------------------------------------------------------------
YPF S.A. 2.48%
PETROLEUM PRODUCTION & REFINING
--------------------------------------------------------------------------
TEXACO, INC. 2.46%
PETROLEUM PRODUCTION & REFINING
--------------------------------------------------------------------------
CHEVRON CORP. 2.44%
PETROLEUM PRODUCTION & REFINING
--------------------------------------------------------------------------
ROYAL DUTCH PETROLEUM 2.39%
PETROLEUM PRODUCTION & REFINING
--------------------------------------------------------------------------
SHARPE RESOURCES CORP. 1.90%
OIL & GAS EXTRACTION
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
PETROLEUM PRODUCTION & REFINING 31.24%
OIL & GAS EXTRACTION 17.19%
CHEMICALS & ALLIED PRODUCTS 16.28%
OIL & GAS FIELD SERVICES 6.29%
PAPER PRODUCTS 5.42%
26
<PAGE>
- --------------------------------------------------------------------------------
GOLD FUNDS
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The World Gold Fund invests in all tiers of mining companies, including
exploration companies. The fund seeks long-term growth of capital, plus
protection against inflation and monetary instability.
The Gold Shares Fund's primary objective is capital appreciation and protection
against inflation and monetary instability. It also pursues current income as a
secondary objective. The fund focuses on mid- and large-capitalization senior
gold producers.
In this volatile period for the gold market, both funds made an effort to focus
on companies with strong balance sheets and growth in resources and production.
In all cases, effective company management is essential.
PERFORMANCE
- --------------------------------------------------------------------------------
WORLD GOLD FUND
- --------------------------------------------------------------------------------
[World Gold Fund mountain graph plotted from the data in the table below.]
<TABLE>
<CAPTION>
U.S. Global Investors Funds XAU
World Gold Fund
<S> <C> <C> <C>
Date Value Date Value
12/30/88 $10,000.00 12/30/88 $10,000.00
1/31/89 $10,330.58 1/31/89 $10,380.42
2/28/89 $10,413.22 2/28/89 $11,577.98
3/31/89 $10,165.29 3/31/89 $10,876.91
4/28/89 $9,752.07 4/28/89 $10,222.96
5/31/89 $9,256.20 5/31/89 $9,957.48
6/30/89 $9,669.42 6/30/89 $10,624.07
7/31/89 $10,082.64 7/31/89 $10,968.85
8/31/89 $10,413.22 8/31/89 $11,737.73
9/29/89 $10,578.51 9/29/89 $11,929.66
10/31/89 $10,578.51 10/31/89 $12,121.60
11/30/89 $12,066.12 11/30/89 $13,717.96
12/29/89 $11,652.89 12/29/89 $13,783.47
1/31/90 $11,902.60 1/31/90 $14,972.99
2/28/90 $11,319.95 2/28/90 $13,874.27
3/30/90 $10,570.84 3/30/90 $12,953.68
4/30/90 $9,239.08 4/30/90 $11,432.02
5/31/90 $9,655.25 5/31/90 $12,339.96
6/29/90 $8,989.37 6/29/90 $11,659.58
7/31/90 $9,572.02 7/31/90 $12,521.55
8/31/90 $9,405.55 8/31/90 $12,418.11
9/28/90 $9,322.31 9/28/90 $12,451.44
10/31/90 $7,765.82 10/31/90 $10,318.35
11/30/90 $7,732.53 11/30/90 $9,796.58
12/31/90 $8,406.73 12/31/90 $11,152.74
1/31/91 $7,249.76 1/31/91 $9,229.97
2/28/91 $7,657.62 2/28/91 $9,883.92
3/28/91 $7,607.67 3/28/91 $9,687.39
4/30/91 $7,449.53 4/30/91 $9,259.86
5/31/91 $7,782.47 5/31/91 $9,460.98
6/28/91 $8,356.79 6/28/91 $10,362.03
7/31/91 $8,381.76 7/31/91 $10,108.03
8/30/91 $7,549.41 8/30/91 $8,724.28
9/30/91 $7,665.94 9/30/91 $9,059.88
10/31/91 $8,440.02 10/31/91 $9,527.64
11/29/91 $8,489.96 11/29/91 $9,669.00
12/31/91 $8,123.73 12/31/91 $9,285.14
1/31/92 $8,323.49 1/31/92 $9,600.05
2/28/92 $8,206.97 2/28/92 $9,355.25
3/31/92 $7,632.64 3/31/92 $8,279.51
4/30/92 $6,908.50 4/30/92 $8,037.01
5/29/92 $7,449.53 5/29/92 $8,622.00
6/30/92 $7,907.32 6/30/92 $9,024.25
7/31/92 $8,356.79 7/31/92 $9,496.61
8/31/92 $8,157.02 8/31/92 $9,064.48
9/30/92 $8,157.02 9/30/92 $9,246.06
10/30/92 $7,824.09 10/30/92 $8,689.81
11/30/92 $7,208.15 11/30/92 $7,563.50
12/31/92 $7,740.85 12/31/92 $8,194.46
1/29/93 $7,374.62 1/29/93 $8,220.89
2/26/93 $7,973.91 2/26/93 $8,732.33
3/31/93 $8,897.82 3/31/93 $9,978.16
4/30/93 $10,196.28 4/30/93 $11,356.17
5/28/93 $11,569.66 5/28/93 $12,769.80
6/30/93 $12,143.98 6/30/93 $13,382.37
7/30/93 $14,441.26 7/30/93 $14,814.39
8/31/93 $13,292.62 8/31/93 $13,546.72
9/30/93 $11,627.92 9/30/93 $11,965.29
10/29/93 $13,542.33 10/29/93 $14,188.02
11/30/93 $13,292.62 11/30/93 $13,643.26
12/31/93 $14,690.97 12/31/93 $15,160.33
1/31/94 $15,198.70 1/31/94 $15,152.28
2/28/94 $14,407.97 2/28/94 $14,755.78
3/31/94 $14,432.94 3/31/94 $15,366.05
4/29/94 $13,275.97 4/29/94 $13,151.36
5/31/94 $13,908.56 5/31/94 $13,828.30
6/30/94 $13,009.62 6/30/94 $13,245.60
7/29/94 $13,026.27 7/29/94 $12,843.35
8/31/94 $13,625.56 8/31/94 $13,621.42
9/30/94 $14,441.26 9/30/94 $15,197.10
10/31/94 $13,650.53 10/31/94 $13,493.85
11/30/94 $11,927.57 11/30/94 $11,803.24
12/30/94 $12,202.24 12/30/94 $12,565.22
1/31/95 $10,917.80 1/31/95 $11,191.82
2/28/95 $11,151.33 2/28/95 $11,933.11
3/31/95 $12,435.78 3/31/95 $14,017.93
4/28/95 $12,777.74 4/28/95 $13,438.69
5/31/95 $12,752.72 5/31/95 $13,791.52
6/30/95 $13,186.43 6/30/95 $13,813.35
7/31/95 $13,761.93 7/31/95 $13,642.11
8/31/95 $14,137.25 8/31/95 $14,097.23
9/29/95 $14,128.91 9/29/95 $14,274.22
10/31/95 $12,677.66 10/31/95 $12,318.12
11/30/95 $13,761.93 11/30/95 $13,919.09
12/29/95 $14,145.59 12/29/95 $13,839.79
1/31/96 $16,430.91 1/31/96 $16,210.78
2/29/96 $16,872.96 2/29/96 $16,556.72
3/29/96 $17,773.74 3/29/96 $16,530.28
4/30/96 $18,324.22 4/30/96 $16,483.16
5/31/96 $20,192.50 5/31/96 $17,111.83
6/28/96 $17,715.36 6/28/96 $14,223.65
7/31/96 $17,164.88 7/31/96 $14,291.46
8/30/96 $18,732.90 8/30/96 $14,314.45
9/30/96 $18,182.43 9/30/96 $13,237.56
10/31/96 $17,707.01 10/31/96 $13,285.83
11/29/96 $17,423.44 11/29/96 $13,813.35
12/31/96 $16,906.32 12/31/96 $13,418.00
1/31/97 $15,962.18 1/31/97 $12,665.21
2/28/97 $17,585.75 2/28/97 $14,074.24
3/31/97 $15,485.70 3/31/97 $11,966.44
4/30/97 $14,726.85 4/30/97 $10,787.27
5/30/97 $15,520.99 5/30/97 $11,988.28
6/30/97 $14,082.72 6/30/97 $10,987.24
7/31/97 $13,403.29 7/31/97 $11,253.88
8/29/97 $13,720.94 8/29/97 $11,363.06
9/30/97 $14,303.31 9/30/97 $12,584.76
10/31/97 $11,903.25 10/31/97 $10,103.44
11/28/97 $9,441.42 11/28/97 $8,139.29
12/31/97 $9,961.14 12/31/97 $8,526.61
1/30/98 $10,818.78 1/30/98 $8,616.25
2/27/98 $10,247.02 2/27/98 $8,671.42
3/31/98 $10,943.85 3/31/98 $9,386.28
4/30/98 $11,399.48 4/30/98 $10,105.73
5/29/98 $9,782.47 5/29/98 $8,586.37
6/30/98 $8,808.69 6/30/98 $8,242.73
7/31/98 $8,192.26 7/31/98 $7,231.35
8/31/98 $6,405.50 8/31/98 $5,618.89
9/30/98 $8,844.42 9/30/98 $8,618.55
10/30/98 $8,728.28 10/30/98 $8,664.52
11/30/98 $8,147.59 11/30/98 $8,155.38
12/31/98 $8,390.59 12/31/98 $7,466.96
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 1998
- --------------------------------------------------------------------------------
<CAPTION>
Ten Year Five Year One Year Six Month
<S> <C> <C> <C> <C>
World Gold Fund (1.74%) (10.60%) (15.77%) (4.75%)
----------------------------------------------------------------------------
Toronto Stock Exchange
Gold & Precious Minerals
Index (0.75%) (13.17%) (12.92%) (6.45%)
----------------------------------------------------------------------------
Philadelphia Stock Exchange
Gold & Silver Index (2.88%) (13.21%) (12.43%) (9.41%)
</TABLE>
Past performance is not predictive of future results. Investment return
and principal value may fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. The Toronto Stock Exchange
Gold & Precious Minerals Index (TSE) is a capitalization-weighted index
designed to measure the performance of the gold and silver sector of the
TSE 300 Index. The Philadelphia Stock Exchange Gold & Silver Index (XAU)
is a capitalization-weighted index which includes the leading companies
involved in the mining of gold and silver.
- --------------------------------------------------------------------------------
27
<PAGE>
- --------------------------------------------------------------------------------
GOLD FUNDS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GOLD SHARES FUND
- --------------------------------------------------------------------------------
[Gold Shares Fund mountain graph plotted from the data in the table below.]
<TABLE>
<CAPTION>
U.S. Global Investors Funds South Africa JSE FT Gold Mines Index
All Gold Index
<S> <C> <C> <C> <C> <C>
Date Value Date Value Date Value
12/30/88 $10,000.00 12/30/88 $10,000.00 12/30/88
1/31/89 $9,970.06 1/31/89 $10,013.91 1/31/89
2/28/89 $10,598.80 2/28/89 $10,397.45 2/28/89
3/31/89 $11,467.07 3/31/89 $11,256.45 3/31/89
4/28/89 $11,197.60 4/28/89 $10,664.72 4/28/89
5/31/89 $10,239.52 5/31/89 $9,116.70 5/31/89
6/30/89 $11,437.13 6/30/89 $9,945.94 6/30/89
7/31/89 $11,679.82 7/31/89 $10,938.34 7/31/89
8/31/89 $11,588.81 8/31/89 $10,323.50 8/31/89
9/29/89 $12,680.95 9/29/89 $11,182.90 9/29/89
10/31/89 $12,771.96 10/31/89 $12,179.23 10/31/89
11/30/89 $15,077.59 11/30/89 $14,174.27 11/30/89
12/29/89 $16,473.10 12/29/89 $14,556.12 12/29/89
1/31/90 $18,055.26 1/31/90 $15,504.55 1/31/90
2/28/90 $15,542.42 2/28/90 $13,647.24 2/28/90
3/30/90 $14,456.62 3/30/90 $13,465.08 3/30/90
4/30/90 $12,905.48 4/30/90 $11,878.27 4/30/90
5/31/90 $13,215.71 5/31/90 $11,130.38 5/31/90
6/29/90 $12,067.87 6/29/90 $10,421.26 6/29/90
7/31/90 $12,762.87 7/31/90 $11,029.78 7/31/90
8/31/90 $12,604.92 8/31/90 $11,895.48 8/31/90
9/28/90 $12,004.68 9/28/90 $11,356.33 9/28/90
10/31/90 $11,183.31 10/31/90 $10,217.49 10/31/90
11/30/90 $10,741.03 11/30/90 $9,138.07 11/30/90
12/31/90 $10,835.81 12/31/90 $8,535.64 12/31/90
1/31/91 $9,639.02 1/31/91 $7,783.74 1/31/91
2/28/91 $10,447.66 2/28/91 $7,553.83 2/28/91
3/28/91 $9,574.32 3/28/91 $6,474.67 3/28/91
4/30/91 $9,800.74 4/30/91 $6,834.64 4/30/91
5/31/91 $10,997.53 5/31/91 $7,942.07 5/31/91
6/28/91 $11,612.10 6/28/91 $8,649.48 6/28/91
7/31/91 $11,221.78 7/31/91 $8,405.66 7/31/91
8/30/91 $9,270.17 8/30/91 $6,816.33 8/30/91
9/30/91 $9,823.12 9/30/91 $7,336.94 9/30/91
10/31/91 $10,148.39 10/31/91 $7,557.38 10/31/91
11/29/91 $10,603.77 11/29/91 $8,004.49 11/29/91
12/31/91 $9,140.06 12/31/91 $7,492.62 12/31/91
1/31/92 $9,106.82 1/31/92 $8,281.23 1/31/92 $10,000.00
2/28/92 $8,209.43 2/28/92 $7,858.43 2/28/92 $9,504.15
3/31/92 $8,076.49 3/31/92 $7,164.88 3/31/92 $8,900.85
4/30/92 $7,511.47 4/30/92 $6,381.99 4/30/92 $8,398.20
5/29/92 $8,010.01 5/29/92 $7,009.08 5/29/92 $8,899.56
6/30/92 $7,378.52 6/30/92 $7,185.17 6/30/92 $9,123.62
7/31/92 $7,009.59 7/31/92 $7,023.29 7/31/92 $9,367.35
8/31/92 $6,405.90 8/31/92 $6,204.51 8/31/92 $8,818.10
9/30/92 $5,768.66 9/30/92 $5,803.38 9/30/92 $8,475.29
10/30/92 $4,963.73 10/30/92 $5,013.10 10/30/92 $7,710.15
11/30/92 $4,628.34 11/30/92 $5,178.64 11/30/92 $6,963.90
12/31/92 $4,494.19 12/31/92 $4,754.25 12/31/92 $7,158.25
1/29/93 $4,734.34 1/29/93 $5,334.22 1/29/93 $7,278.29
2/26/93 $5,146.02 2/26/93 $5,620.57 2/26/93 $8,111.58
3/31/93 $6,106.61 3/31/93 $5,710.76 3/31/93 $9,500.14
4/30/93 $7,101.51 4/30/93 $6,952.40 4/30/93 $11,110.67
5/28/93 $8,473.78 5/28/93 $8,726.58 5/28/93 $13,158.72
6/30/93 $8,611.00 6/30/93 $8,605.19 6/30/93 $13,664.95
7/30/93 $9,786.80 7/30/93 $11,283.87 7/30/93 $15,456.59
8/31/93 $8,023.10 8/31/93 $9,393.60 8/31/93 $13,506.32
9/30/93 $7,642.70 9/30/93 $7,976.17 9/30/93 $12,083.34
10/29/93 $8,576.42 10/29/93 $9,498.52 10/29/93 $14,147.78
11/30/93 $8,507.26 11/30/93 $9,879.15 11/30/93 $13,832.10
12/31/93 $10,063.46 12/31/93 $11,522.93 12/31/93 $15,978.00
1/31/94 $9,050.13 1/31/94 $10,290.92 1/31/94 $15,494.17
2/28/94 $8,491.05 2/28/94 $10,444.87 2/28/94 $14,481.78
3/31/94 $8,386.22 3/31/94 $10,512.17 3/31/94 $14,570.18
4/29/94 $8,630.82 4/29/94 $10,325.98 4/29/94 $13,575.12
5/31/94 $8,351.28 5/31/94 $9,597.85 5/31/94 $13,990.51
6/30/94 $8,770.59 6/30/94 $10,391.11 6/30/94 $13,671.75
7/29/94 $9,088.87 7/29/94 $10,567.63 7/29/94 $14,040.62
8/31/94 $10,079.10 8/31/94 $11,593.28 8/31/94 $14,906.12
9/30/94 $11,281.52 9/30/94 $12,440.40 9/30/94 $16,637.63
10/31/94 $10,680.31 10/31/94 $11,551.24 10/31/94 $15,432.54
11/30/94 $9,336.43 11/30/94 $10,100.17 11/30/94 $13,524.51
12/30/94 $9,796.18 12/30/94 $10,376.37 12/30/94 $14,143.19
1/31/95 $7,499.64 1/31/95 $7,754.89 1/31/95 $11,724.57
2/28/95 $7,930.24 2/28/95 $7,698.18 2/28/95 $12,387.42
3/31/95 $8,289.08 3/31/95 $7,467.87 3/31/95 $13,814.13
4/28/95 $7,894.36 4/28/95 $7,324.56 4/28/95 $13,810.41
5/31/95 $7,679.06 5/31/95 $6,851.42 5/31/95 $13,608.54
6/30/95 $7,786.71 6/30/95 $7,195.02 6/30/95 $13,797.52
7/31/95 $8,405.28 7/31/95 $7,554.78 7/31/95 $13,958.58
8/31/95 $8,368.89 8/31/95 $7,610.18 8/31/95 $14,119.64
9/29/95 $8,296.12 9/29/95 $7,535.50 9/29/95 $14,214.13
10/31/95 $7,022.59 10/31/95 $6,333.07 10/31/95 $12,332.94
11/30/95 $7,095.36 11/30/95 $6,437.85 11/30/95 $13,509.76
12/29/95 $7,168.14 12/29/95 $6,698.84 12/29/95 $13,696.59
1/31/96 $8,756.95 1/31/96 $8,456.71 1/31/96 $16,504.77
2/29/96 $8,498.31 2/29/96 $8,388.89 2/29/96 $16,751.73
3/29/96 $8,017.97 3/29/96 $8,136.89 3/29/96 $16,707.35
4/30/96 $8,054.92 4/30/96 $8,165.35 4/30/96 $16,654.38
5/31/96 $8,276.61 5/31/96 $8,394.12 5/31/96 $17,014.44
6/28/96 $6,872.54 6/28/96 $7,226.79 6/28/96 $14,435.32
7/31/96 $6,797.84 7/31/96 $7,141.50 7/31/96 $14,285.71
8/30/96 $6,760.49 8/30/96 $7,238.17 8/30/96 $14,541.26
9/30/96 $6,162.88 9/30/96 $6,623.09 9/30/96 $13,255.64
10/31/96 $6,050.83 10/31/96 $6,709.38 10/31/96 $13,441.04
11/29/96 $5,639.97 11/29/96 $6,014.77 11/29/96 $13,401.67
12/31/96 $5,341.16 12/31/96 $5,853.02 12/31/96 $13,053.06
1/31/97 $4,807.05 1/31/97 $5,373.17 1/31/97 $12,156.85
2/28/97 $5,493.77 2/28/97 $6,350.30 2/28/97 $13,653.64
3/31/97 $4,730.74 3/31/97 $5,351.99 3/31/97 $11,717.34
4/30/97 $4,349.23 4/30/97 $4,851.84 4/30/97 $10,512.60
5/30/97 $4,425.53 5/30/97 $4,775.75 5/30/97 $11,237.02
6/30/97 $3,677.77 6/30/97 $3,867.31 6/30/97 $9,970.01
7/31/97 $3,756.02 7/31/97 $3,870.57 7/31/97 $10,122.48
8/29/97 $3,795.15 8/29/97 $3,937.10 8/29/97 $10,106.73
9/30/97 $3,716.90 9/30/97 $3,997.48 9/30/97 $10,916.33
10/31/97 $2,895.27 10/31/97 $3,386.02 10/31/97 $8,887.68
11/28/97 $2,230.14 11/28/97 $2,722.06 11/28/97 $6,998.05
12/31/97 $2,277.09 12/31/97 $2,994.69 12/31/97 $7,574.86
1/30/98 $2,277.09 1/30/98 $3,243.94 1/30/98 $8,001.49
2/27/98 $2,077.34 2/27/98 $2,876.83 2/27/98 $7,709.43
3/31/98 $2,117.29 3/31/98 $2,936.31 3/31/98 $8,196.91
4/30/98 $2,237.14 4/30/98 $3,881.53 4/30/98 $9,294.27
5/29/98 $1,797.70 5/29/98 $3,292.64 5/29/98 $7,781.73
6/30/98 $1,514.06 6/30/98 $2,692.22 6/30/98 $7,114.30
7/31/98 $1,526.05 7/31/98 $2,707.81 7/31/98 $6,446.93
8/31/98 $1,174.50 8/31/98 $2,216.76 8/31/98 $5,022.08
9/30/98 $1,637.91 9/30/98 $3,393.56 9/30/98 $7,880.51
10/30/98 $1,601.95 10/30/98 $3,437.44 10/30/98 $7,967.85
11/30/98 $1,502.08 11/30/98 $3,330.24 11/30/98 $7,552.67
12/31/98 $1,526.05 12/31/98 $2,692.89 12/31/98 $6,689.31
</TABLE>
<TABLE>
- --------------------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE For the Periods Ended
December 31, 1998
- --------------------------------------------------------------------------------
<CAPTION>
Ten Year Five Year One Year Six Month
<S> <C> <C> <C> <C>
Gold Shares Fund (17.14%) (31.43%) (32.98%) 0.79%
----------------------------------------------------------------------------
Financial Times Gold Mines
Index n/a (15.98%) (11.69%) (5.97%)
----------------------------------------------------------------------------
Johannesburg All Gold Index (12.30%) (25.23%) (10.08%) 0.02%
</TABLE>
Past performance is not predictive of future results. Investment return
and principal value may fluctuate so that shares, when redeemed, may be
worth more or less than their original cost. The Financial Times Gold
Mines Index is a market capitalization-weighted total return index of the
leading Northern American, Australian and African gold mining companies.
The Johannesburg All Gold Index is a capitalization-weighted index of all
domestic gold stocks traded on the Johannesburg Stock Exchange.
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
Although gold had changed little by the end of the six-month period, the price
was very volatile during that period. Gold declined to $271 per ounce at the end
of August, a new 18-year low, and was quick to recover to above $300 per ounce
at the start of October. The decline in August was in conjunction with the
decline in the general equity markets over growing concern regarding Long Term
Capital Management Company's exposure to Russia and other emerging markets.
During the last three months of 1998, gold traded mostly in a narrow range of
$288 to $296. Gold's recovery was related to the decline in the value of the
U.S. dollar relative to the Japanese yen.
28
<PAGE>
- --------------------------------------------------------------------------------
GOLD FUNDS
- --------------------------------------------------------------------------------
INVESTMENT HIGHLIGHTS
The funds showed great improvement in performance from the first half of the
year. The reason for the improved performance was the implementation of a new
disciplined portfolio management style. This discipline combines a top-down
macro theme approach with a bottom-up stock-selection strategy.
As part of the top-down discipline, we look for countries with favorable mining
laws, relatively stable currency, and liquid securities. For our bottom-up
stock-selection strategy, we look for companies with robust reserve growth
profiles, healthy production and strong cash flows.
Two such investments that added significantly to fund performance were Meridian
Gold and Getchell Gold. In both cases, the funds overweighted their positions
in these companies. Meridian's price increased significantly after announcing a
new discovery. Getchell's price increased significantly after a takeover bid by
Placer Dome. Both companies had strong growth profiles in production and
developing large reserves.
As stated above, gold prices reached new 18-year lows during the last six months
of 1998. Like the U.S. domestic market, large-cap companies outperformed
small-cap companies over the past twelve months. This also applied to the gold
industry. Since World Gold owned more mid-cap and micro-cap stocks, its
portfolio lagged.
OUTLOOK
Looking forward, we plan to continue our top-down/bottom-up portfolio
management. The gold market is both cyclical and volatile. Within a given cycle,
regardless of the direction of price, daily volatility exists. Our top-down
analysis will continue to seek opportunities for trading gold equities. Our
bottom-up detailed analysis of companies will continue with a goal of
identifying top quality companies with potential for high returns.
Our outlook for gold in 1999 is mildly bullish. However, we are cautious in all
of our investment decisions.
29
<PAGE>
- --------------------------------------------------------------------------------
GOLD FUNDS
- --------------------------------------------------------------------------------
WORLD GOLD FUND
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
GETCHELL GOLD CORP. 12.72%
INTERMEDIATE GOLD PRODUCERS
--------------------------------------------------------------------------
MERIDIAN GOLD, INC. 10.42%
INTERMEDIATE GOLD PRODUCERS
--------------------------------------------------------------------------
DELTA GOLD, NL 9.40%
INTERMEDIATE GOLD PRODUCERS
--------------------------------------------------------------------------
BARRICK GOLD CORP. 5.70%
SENIOR GOLD PRODUCERS
--------------------------------------------------------------------------
PLACER DOME, INC. 5.29%
SENIOR GOLD PRODUCERS
--------------------------------------------------------------------------
EURO-NEVADA MINING CORP. 4.94%
MINING FINANCE
--------------------------------------------------------------------------
ACACIA RESOURCES 4.11%
INTERMEDIATE GOLD PRODUCERS
--------------------------------------------------------------------------
NEWMONT MINING CORP. 4.11%
SENIOR GOLD PRODUCERS
--------------------------------------------------------------------------
IAMGOLD INTERNATIONAL AFRICAN MINING 3.96%
JUNIOR GOLD PRODUCERS
--------------------------------------------------------------------------
RANGER MINERALS NL 3.65%
JUNIOR GOLD PRODUCERS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
INTERMEDIATE GOLD PRODUCERS 39.66%
SENIOR GOLD PRODUCERS 28.31%
JUNIOR GOLD PRODUCERS 9.68%
GOLD EXPLORATION & DEVELOPMENT 8.05%
MINING FINANCE 7.68%
30
<PAGE>
- --------------------------------------------------------------------------------
GOLD FUNDS
- --------------------------------------------------------------------------------
GOLD SHARES FUND
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
MERIDIAN GOLD, INC. 20.27%
GOLD MINING - NORTH AMERICA
--------------------------------------------------------------------------
GETCHELL GOLD CORP. 13.02%
GOLD MINING - NORTH AMERICA
--------------------------------------------------------------------------
DELTA GOLD, NL 7.18%
GOLD MINING - NORTH AMERICA
--------------------------------------------------------------------------
BARRICK GOLD CORP. 6.32%
GOLD MINING - NORTH AMERICA
--------------------------------------------------------------------------
GOLD FIELDS LTD. 6.13%
GOLD MINING - AFRICA
--------------------------------------------------------------------------
CAMBIOR, INC. 5.63%
GOLD MINING - NORTH AMERICA
--------------------------------------------------------------------------
ACACIA RESOURCES 5.35%
GOLD MINING - AUSTRALIA
--------------------------------------------------------------------------
PLACER DOME, INC. 4.90%
GOLD MINING - NORTH AMERICA
--------------------------------------------------------------------------
NEWMONT MINING CORP. 4.06%
GOLD MINING - NORTH AMERICA
--------------------------------------------------------------------------
ASHANTI GOLDFIELDS 2.13%
GOLD MINING - NORTH AMERICA
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
TOP 3 INDUSTRIES BASED ON TOTAL INVESTMENTS
- --------------------------------------------------------------------------------
GOLD MINING - NORTH AMERICA 68.87%
GOLD MINING - AUSTRALIA 15.57%
GOLD MINING - AFRICA 11.58%
31
<PAGE>
<TABLE>
U.S. TREASURY SECURITIES CASH FUND
- ------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ------------------------------------------------------------------------------------
<CAPTION>
UNITED STATES
GOVERNMENT COUPON MATURITY PRINCIPAL
OBLIGATIONS 67.10% RATE DATE AMOUNT VALUE
UNITED STATES TREASURY BILLS 20.45%
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Yield 3.99% 02/11/99 $ 20,000,000 $ 19,912,389
Yield 4.19% 03/04/99 20,000,000 19,855,122
------------
39,767,511
<CAPTION>
UNITED STATES TREASURY NOTES 46.65%
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6.25% 03/31/99 25,000,000 25,076,431
7.00% 04/15/99 15,000,000 15,094,627
6.375% 04/30/99 25,000,000 25,149,508
9.125% 05/15/99 25,000,000 25,391,465
------------
90,712,031
<CAPTION>
- ------------------------------------------------------------------------------------
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS 130,479,542
- ------------------------------------------------------------------------------------
(cost $130,479,542)
<S> <C> <C> <C> <C>
REPURCHASE AGREEMENTS 32.52%
Joint Tri-Party Repurchase
Agreements, 12/31/98,
collateralized by U.S.
Treasury securities held in
joint tri-party repurchase
accounts:
4.90% Donaldson, Lufkin &
Jenrette, Inc., repurchase
price $43,249,565 4.90% 01/04/99 43,243,679 43,243,679
4.90% PaineWebber, Inc.,
repurchase price $20,010,889 4.90% 01/04/99 20,000,000 20,000,000
- ------------------------------------------------------------------------------------
TOTAL REPURCHASE AGREEMENTS 63,243,679
- ------------------------------------------------------------------------------------
(cost $63,243,679)
- ------------------------------------------------------------------------------------
TOTAL INVESTMENTS 99.62% 193,723,221
- ------------------------------------------------------------------------------------
(cost $193,723,221)
Other assets and liabilities, 745,860
net 0.38% ------------
NET ASSETS 100% $194,469,081
------------
See notes to portfolios of investments.
</TABLE>
32
<PAGE>
<TABLE>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
<CAPTION>
GOVERNMENT AND AGENCY COUPON MATURITY PRINCIPAL
OBLIGATIONS 99.70% RATE DATE AMOUNT VALUE
FEDERAL FARM CREDIT BANK 26.16%
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Discount Notes:
Yield 4.56% 01/04/99 $ 50,000,000 $ 50,000,000
Yield 5.16% 01/25/99 21,840,000 21,775,153
Yield 5.21% 02/05/99 7,506,000 7,470,668
Yield 4.98% 02/19/99 200,000 198,745
Yield 4.75% 08/27/99 4,000,000 3,877,800
Yield 4.75% 08/30/99 190,000 184,109
Yield 4.71% 11/24/99 83,000 79,526
Yield 4.71% 12/23/99 10,000,000 9,544,042
Variable Rates:
4.73% 09/17/99 25,000,000 25,000,000
5.29% 10/01/99 25,000,000 25,000,000
4.90% 12/01/99 10,000,000 10,000,000
Fixed Rates:
4.85% 02/01/99 6,800,000 6,797,491
5.50% 02/01/99 1,000,000 1,000,035
5.48% 03/01/99 10,000,000 10,011,641
5.79% 03/01/99 91,304 91,399
5.38% 03/02/99 5,850,000 5,847,906
5.58% 03/04/99 6,000,000 6,003,904
7.55% 03/25/99 370,000 372,000
5.16% 04/01/99 15,100,000 15,107,867
5.50% 04/01/99 155,000 155,163
6.21% 06/03/99 500,000 502,581
6.53% 06/07/99 250,000 251,644
6.47% 06/28/99 1,025,000 1,029,010
5.55% 07/01/99 750,000 752,968
5.50% 08/03/99 10,000,000 9,995,028
6.30% 08/09/99 100,000 100,916
7.13% 08/26/99 80,000 81,201
6.06% 09/08/99 500,000 503,375
8.65% 10/01/99 150,000 154,194
6.13% 10/22/99 150,000 151,615
6.65% 11/12/99 110,000 111,462
------------
212,151,443
<CAPTION>
FEDERAL HOME LOAN BANK 64.66%
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Discount Notes:
Yield 4.42% 01/04/99 82,705,000 82,705,000
Yield 5.38% 01/06/99 4,175,000 4,173,768
Yield 4.81% 01/11/99 10,900,000 10,889,954
Yield 5.20% 01/13/99 4,805,000 4,798,839
33
<PAGE>
<CAPTION>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
UNITED STATES
GOVERNMENT AND COUPON MATURITY PRINCIPAL
AGENCY OBLIGATIONS RATE DATE AMOUNT VALUE
FEDERAL HOME LOAN BANK (CONT'D)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Yield 5.12% 01/15/99 $ 1,207,000 $ 1,205,138
Yield 4.90% 01/20/99 20,365,000 20,321,239
Yield 4.87% 01/22/99 12,450,000 12,420,124
Yield 5.22% 01/27/99 1,160,000 1,156,183
Yield 5.12% 01/29/99 958,000 954,640
Yield 5.13% 02/04/99 155,000 154,325
Yield 4.99% 02/09/99 100,000 99,508
Yield 5.10% 02/12/99 7,237,000 7,197,548
Yield 4.95% 02/17/99 25,000,000 24,850,889
Yield 5.08% 02/19/99 1,335,000 1,326,454
Yield 5.12% 02/24/99 1,880,000 1,866,550
Yield 5.11% 03/01/99 108,000 107,153
Yield 5.02% 03/12/99 322,000 319,033
Yield 5.07% 03/25/99 153,000 151,300
Yield 4.65% 04/14/99 6,422,000 6,340,216
Yield 4.63% 04/16/99 6,262,000 6,182,732
Yield 4.89% 04/21/99 1,533,000 1,511,038
Yield 4.88% 04/30/99 10,000,000 9,845,011
Yield 4.85% 05/05/99 691,000 679,898
Yield 4.87% 05/11/99 198,000 194,647
Yield 4.87% 05/12/99 191,000 187,740
Yield 4.61% 05/14/99 117,000 115,078
Yield 4.84% 05/26/99 853,000 836,951
Yield 4.86% 05/28/99 8,336,000 8,176,282
Yield 4.81% 07/12/99 2,000,000 1,950,198
Variable Rates:
4.90% 03/10/99 5,000,000 4,998,935
5.07% 03/26/99 29,000,000 28,997,748
5.07% 04/01/99 10,000,000 9,998,382
5.11% 04/09/99 10,000,000 9,999,194
4.74% 06/02/99 25,000,000 24,991,843
4.80% 10/13/99 25,000,000 25,000,000
Fixed Rates:
5.87% 01/08/99 225,000 225,015
5.41% 01/12/99 25,000 25,002
5.40% 01/15/99 50,000 50,002
5.39% 01/22/99 5,000,000 4,999,480
5.11% 01/25/99 25,000 24,999
5.58% 01/26/99 5,000,000 4,999,660
5.93% 02/01/99 70,000 70,035
5.59% 02/02/99 75,000 75,021
5.44% 02/02/99 2,500,000 2,499,715
5.60% 02/05/99 150,000 150,057
6.09% 02/05/99 1,650,000 1,650,953
5.42% 02/10/99 3,000,000 2,999,275
34
<PAGE>
<CAPTION>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
UNITED STATES
GOVERNMENT AND COUPON MATURITY PRINCIPAL
AGENCY OBLIGATIONS RATE DATE AMOUNT VALUE
FEDERAL HOME LOAN BANK (CONT'D)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5.40% 02/23/99 $ 200,000 $ 200,070
5.47% 02/24/99 5,000,000 5,000,000
5.43% 02/25/99 1,000,000 999,855
5.86% 02/26/99 130,000 130,147
5.27% 03/01/99 85,000 85,010
9.70% 03/03/99 25,000 25,181
5.77% 03/08/99 500,000 500,589
5.58% 03/11/99 7,500,000 7,501,205
5.56% 03/16/99 5,000,000 4,999,962
6.07% 03/17/99 85,000 85,164
5.50% 03/19/99 5,000,000 4,998,470
5.88% 03/19/99 470,000 470,323
5.45% 03/24/99 5,000,000 5,004,033
5.53% 03/25/99 6,000,000 6,005,925
5.90% 03/29/99 115,000 115,219
5.57% 04/07/99 350,000 350,458
6.25% 04/12/99 20,000 20,063
6.60% 04/13/99 40,000 40,163
5.61% 04/27/99 20,000 20,035
6.09% 04/30/99 3,000,000 3,006,750
5.71% 05/05/99 15,000,000 15,047,629
5.72% 05/06/99 475,000 475,132
6.41% 05/07/99 400,000 401,963
6.47% 05/10/99 200,000 201,039
6.38% 05/17/99 15,000 15,030
7.28% 05/18/99 65,000 65,542
5.65% 05/19/99 4,330,000 4,331,055
6.27% 06/02/99 20,000 20,116
6.24% 06/04/99 15,000 15,020
5.63% 06/15/99 6,265,000 6,283,482
6.74% 06/17/99 25,000 25,210
6.85% 06/24/99 125,000 126,160
8.60% 06/25/99 450,000 457,811
6.08% 06/30/99 1,000,000 1,005,261
5.51% 07/06/99 4,000,000 4,011,120
7.02% 07/06/99 720,000 728,031
6.10% 07/07/99 100,000 100,679
6.12% 07/08/99 100,000 100,697
7.11% 07/08/99 10,000 10,117
5.54% 07/13/99 25,000 25,106
5.54% 07/15/99 5,305,000 5,304,150
5.54% 07/15/99 400,000 401,314
6.98% 07/26/99 100,000 101,229
8.45% 07/26/99 1,955,000 1,990,869
5.62% 08/03/99 500,000 502,009
35
<PAGE>
<CAPTION>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
UNITED STATES
GOVERNMENT AND COUPON MATURITY PRINCIPAL
AGENCY OBLIGATIONS RATE DATE AMOUNT VALUE
FEDERAL HOME LOAN BANK (CONT'D)
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
5.08% 08/12/99 $ 25,000,000 $ 24,990,788
6.20% 08/20/99 60,000 60,541
8.60% 08/25/99 200,000 204,612
5.16% 09/22/99 10,000,000 10,015,478
5.15% 09/30/99 15,000,000 14,999,712
6.03% 10/01/99 14,000,000 14,107,083
5.30% 10/06/99 10,000,000 9,999,706
6.19% 10/15/99 120,000 121,308
7.51% 10/18/99 300,000 306,329
6.22% 10/20/99 1,000,000 1,011,029
7.40% 10/20/99 30,000 30,613
6.05% 10/25/99 100,000 101,028
8.38% 10/25/99 500,000 513,506
4.94% 10/27/99 380,000 379,904
7.65% 10/28/99 205,000 209,570
5.01% 10/29/99 150,000 150,000
5.81% 11/04/99 495,000 498,849
5.08% 11/09/99 275,000 275,000
5.13% 11/17/99 16,710,000 16,709,432
5.02% 12/09/99 15,000,000 14,995,646
5.11% 12/14/99 880,000 880,000
------------
524,337,279
<CAPTION>
STUDENT LOAN MARKETING ASSOCIATION 8.79%
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Discount Notes:
Yield 1.01% 01/04/99 5,000,000 5,000,000
Variable Rates:
4.85% 01/13/99 4,000,000 3,999,846
5.34% 05/20/99 2,380,000 2,379,672
Fixed Rates:
7.72% 01/25/99 1,000,000 1,001,133
5.40% 02/10/99 10,085,000 10,084,027
5.27% 02/25/99 2,000,000 1,999,597
5.53% 03/04/99 5,000,000 5,000,000
5.08% 04/01/99 10,000,000 9,999,081
5.52% 06/10/99 10,219,000 10,243,178
4.86% 08/02/99 10,000,000 9,984,149
5.17% 10/06/99 6,450,000 6,449,810
4.84% 10/27/99 5,092,000 5,091,331
------------
71,231,824
36
<PAGE>
<CAPTION>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
UNITED STATES
GOVERNMENT AND COUPON MATURITY PRINCIPAL
AGENCY OBLIGATIONS RATE DATE AMOUNT VALUE
GOVERNMENT AGENCY BONDS 0.09%
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Tennessee Valley Power
Authority
Series D 8.38% 10/01/99 $ 750,000 $ 769,273
- ----------------------------------------------------------------------------------
TOTAL INVESTMENTS 99.70% 808,489,819
- -----------------------------------------------------------------------------------
(cost $808,489,819)
Other assets and liabilities,
net 0.30% 2,411,585
------------
NET ASSETS 100% $810,901,404
------------
See notes to portfolios of investments.
</TABLE>
37
<PAGE>
<TABLE>
NEAR-TERM TAX FREE FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
<CAPTION>
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS 86.72% RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
CALIFORNIA 2.28%
- -----------------------------------------------------------------------------------
West Hollywood Certificates of
Participation, Series A 12.00% 02/01/00 $ 170,000 $ 174,429
CONNECTICUT 4.38%
- -----------------------------------------------------------------------------------
Bridgeport Series A, GO 6.00% 03/01/06 300,000 334,875
GEORGIA 4.24%
- -----------------------------------------------------------------------------------
Columbus Water & Sewer Revenue 6.65% 05/01/09 300,000 324,375
ILLINOIS 2.34%
- -----------------------------------------------------------------------------------
Chicago Water Revenue (ZCB) 0.00% 11/01/08 275,000 179,438
IOWA 4.29%
- -----------------------------------------------------------------------------------
Finance Authority Hospital Facility
Revenue 5.15% 07/01/04 310,000 328,212
KANSAS 5.50%
- -----------------------------------------------------------------------------------
Seward County School District #480 7.40% 09/01/03 370,000 421,337
NEBRASKA 3.61%
- -----------------------------------------------------------------------------------
Nebraska Public Power District Revenue 5.70% 01/01/05 255,000 276,675
NEVADA 6.97%
- -----------------------------------------------------------------------------------
Nevada State Municipal Bond Bank
Project #51, Series A, GO 5.10% 01/01/08 250,000 262,500
Washoe County Gas & Water Facilities
Revenue 6.30% 12/01/14 250,000 270,937
----------
533,437
NEW JERSEY 4.15%
- -----------------------------------------------------------------------------------
Washington Township Board of
Education, GO 5.10% 02/01/08 300,000 318,000
OHIO 2.01%
- -----------------------------------------------------------------------------------
Ohio State Building Authority 7.30% 03/01/02 150,000 153,950
OKLAHOMA 2.86%
- -----------------------------------------------------------------------------------
University of Oklahoma Revenue 12.00% 03/01/00 200,000 218,750
PENNSYLVANIA 3.40%
- -----------------------------------------------------------------------------------
Philadelphia Hospitals & Higher
Education Revenue 5.00% 05/15/03 250,000 260,000
38
<PAGE>
<CAPTION>
NEAR-TERM TAX FREE FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
SOUTH CAROLINA 4.01%
- -----------------------------------------------------------------------------------
Georgetown County Pollution Control
Facilities Revenue, Series A 7.38% 06/15/05 $ 300,000 $ 306,879
TEXAS 15.97%
- -----------------------------------------------------------------------------------
Haltom City Tax Note: 4.50% 02/01/99 185,000 185,142
4.70% 02/01/00 195,000 197,042
Comal Independent School District: 4.75% 02/01/99 230,000 230,241
4.90% 02/01/00 240,000 243,593
5.00% 02/01/01 255,000 261,694
Harris County Revenue 10.00% 10/01/99 100,000 104,936
----------
1,222,648
UTAH 8.33%
- -----------------------------------------------------------------------------------
Municipal Finance COOP Local
Government Revenue 6.40% 08/01/09 300,000 320,250
Weber County School District,
Series A, GO 5.15% 06/15/08 300,000 317,625
----------
637,875
VIRGIN ISLANDS 4.02%
- -----------------------------------------------------------------------------------
Virgin Islands Public Finance
Authority Revenue 5.00% 10/01/03 300,000 307,500
VIRGINIA 1.37%
- -----------------------------------------------------------------------------------
Lynchburg Development Authority
Revenue 5.88% 09/01/13 100,000 104,750
WASHINGTON 4.22%
- -----------------------------------------------------------------------------------
King County, Series A, GO,
Pre-Refunded 5.80% 12/01/06 40,000 43,350
King County, Series A, GO 5.80% 12/01/06 260,000 279,825
----------
323,175
WISCONSIN 2.77%
- -----------------------------------------------------------------------------------
State Health & Educational Facilities
Revenue 5.20% 06/01/05 200,000 212,000
- -----------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS 6,638,305
- -----------------------------------------------------------------------------------
(cost $6,475,233)
39
<PAGE>
<CAPTION>
NEAR-TERM TAX FREE FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
REPURCHASE COUPON MATURITY PRINCIPAL
AGREEMENT 11.97% RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette,
12/31/98, 4.90%, repurchase price
$917,065, collateralized by U.S.
Treasury securities held in a joint
tri-party repurchase account
(cost $916,566) 4.90% 01/04/99 $ 916,566 $ 916,566
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS 98.69% 7,554,871
- -----------------------------------------------------------------------------------
(cost $7,391,799)
Other assets and liabilities, net
1.31% 100,276
----------
NET ASSETS 100% $7,655,147
----------
See notes to portfolios of investments.
</TABLE>
40
<PAGE>
<TABLE>
TAX FREE FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
<CAPTION>
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS 96.12% RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
CONNECTICUT 2.35%
- -----------------------------------------------------------------------------------
Connecticut State Development
Authority Water Facility Revenue,
Refunding 7.25% 06/01/20 $ 500,000 $ 529,375
FLORIDA 3.51%
- -----------------------------------------------------------------------------------
Florida Board of Education Capital
Outlay GO Unlimited Tax, Refunding,
Series A 6.625% 06/01/07 700,000 791,000
HAWAII 1.88%
- -----------------------------------------------------------------------------------
Hawaii State Department of Budget and
Finance 6.00% 07/01/19 400,000 423,500
ILLINOIS 12.13%
- -----------------------------------------------------------------------------------
Boone McHenry and Dekalb Counties
Community Unit School District
(ZCB) 0.00% 12/01/08 1,000,000 647,500
Du Page County, Refunding 5.60% 01/01/21 490,000 532,262
Illinois Development Financing
Authority Revenue, Series B 6.25% 09/01/17 250,000 270,313
Illinois Health Facility Authority
Revenue, Series A 6.80% 01/01/22 400,000 429,000
Illinois Regional Transportation
Authority Revenue, Series A 7.20% 11/01/20 250,000 323,125
Lake County School District,
Refunding 5.375% 01/01/11 500,000 528,750
-----------
2,730,950
INDIANA 4.78%
- -----------------------------------------------------------------------------------
Fort Wayne Water Works, Revenue 4.75% 12/01/10 500,000 508,125
Indiana Health Facility Finance
Authority Revenue, Series A 5.75% 08/01/08 540,000 569,025
-----------
1,077,150
MASSACHUSETTS 2.44%
- -----------------------------------------------------------------------------------
Massachusetts State Health &
Educational Facilities Authority
Revenue, Refunding, Issue A 7.10% 07/01/21 500,000 550,000
MICHIGAN 8.34%
- -----------------------------------------------------------------------------------
Allegan Public School District 5.10% 05/01/18 580,000 580,725
Belding Area Schools 5.00% 05/01/18 390,000 388,050
Lincoln School District 5.00% 05/01/13 400,000 406,500
Michigan State Hospital Finance
Authority Revenue 4.90% 05/15/13 500,000 501,875
-----------
1,877,150
41
<PAGE>
<CAPTION>
TAX FREE FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
MISSISSIPPI 1.84%
- -----------------------------------------------------------------------------------
Vicksburg Leased Housing Corp.
Housing Revenue, Refunding,
Series A 6.125% 02/15/22 $ 400,000 $ 414,000
NEVADA 4.01%
- -----------------------------------------------------------------------------------
Clark County Las Vegas Convention &
Visitors Authority, GO Limited Tax 5.50% 07/01/17 870,000 903,712
NEW JERSEY 2.93%
- -----------------------------------------------------------------------------------
Galloway Township 4.50% 12/15/09 650,000 658,938
NORTH CAROLINA 3.27%
- -----------------------------------------------------------------------------------
North Carolina Eastern Municipal
Power Agency Revenue, Refunding,
Series A 5.60% 01/01/10 675,000 735,750
OHIO 2.26%
- -----------------------------------------------------------------------------------
Olentangy Local School District,
GO Limited Tax, Series A 6.25% 12/01/15 240,000 266,700
South Euclid Special Assessment,
GO Limited 6.70% 12/01/14 200,000 243,250
-----------
509,950
OKLAHOMA 2.21%
- -----------------------------------------------------------------------------------
Oklahoma Agriculture & Mechanical
Colleges Revenue 5.00% 07/01/18 500,000 498,750
PENNSYLVANIA 1.17%
- -----------------------------------------------------------------------------------
Chester County Health & Educational
Facilities Authority Revenue 5.00% 05/15/08 250,000 263,437
RHODE ISLAND 4.66%
- -----------------------------------------------------------------------------------
North Providence GO Unlimited Tax,
Series A 6.05% 07/01/13 500,000 562,500
Providence Public Building Authority
Revenue, Series B 7.25% 12/15/10 450,000 486,000
-----------
1,048,500
SOUTH CAROLINA 2.18%
- -----------------------------------------------------------------------------------
South Carolina Jobs Economic
Development Authority Revenue 5.00% 11/01/23 500,000 491,250
TENNESSEE 1.28%
- -----------------------------------------------------------------------------------
State Development Authority Revenue,
Series 1992 7.00% 10/01/11 265,000 288,519
42
<PAGE>
<CAPTION>
TAX FREE FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
TEXAS 19.77%
- -----------------------------------------------------------------------------------
Austin General Obligation 5.00% 09/01/16 $ 565,000 $ 569,237
Carroll Independent School District 5.00% 02/15/20 500,000 496,250
Clear Lake City Independent School
District 5.00% 03/01/18 500,000 495,625
Conroe Independent School District 5.10% 02/15/21 325,000 324,594
De Soto Independent School District 5.125% 08/15/23 500,000 498,240
Lindale Independent School District 5.00% 02/15/14 570,000 575,700
Lubbock Independent School District 5.00% 02/15/14 300,000 308,625
San Antonio Electric & Gas 5.00% 02/01/18 500,000 498,125
Victoria Independent School District 5.00% 02/15/19 500,000 496,875
Wichita Falls Independent School
District 4.625% 08/01/18 200,000 188,750
-----------
4,452,021
VIRGINIA 1.97%
- -----------------------------------------------------------------------------------
State Housing Development Authority
Multifamily Revenue, Series E 5.90% 11/01/17 425,000 444,125
WASHINGTON 3.74%
- -----------------------------------------------------------------------------------
King & Snohomish Counties' School
District 5.00% 06/15/10 500,000 518,125
Seattle Indian Services Revenue,
Refunding 6.50% 11/01/17 305,000 324,444
-----------
842,569
WEST VIRGINIA 5.62%
- -----------------------------------------------------------------------------------
Berkeley County Hospital Revenue,
Refunding 6.50% 11/01/09 115,000 123,050
6.50% 11/01/22 280,000 297,150
West Virginia State Housing
Development Revenue, Series A 6.05% 05/01/27 790,000 845,300
-----------
1,265,500
WYOMING 3.78%
- -----------------------------------------------------------------------------------
Wyoming Building Authority 5.25% 05/01/18 480,000 486,600
Wyoming Community Development
Authority, Series A 6.10% 06/01/33 350,000 364,000
-----------
850,600
- -----------------------------------------------------------------------------------
TOTAL MUNICIPAL BONDS 21,646,746
- -----------------------------------------------------------------------------------
(cost $20,840,565)
43
<PAGE>
<CAPTION>
TAX FREE FUND
- -----------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------
REPURCHASE COUPON MATURITY PRINCIPAL
AGREEMENT 5.37% RATE DATE AMOUNT VALUE
<S> <C> <C> <C> <C>
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette,
12/31/98, 4.90%, repurchase price
$1,210,680, collateralized by U.S.
Treasury securities held in a joint
tri-party repurchase account
(cost $1,210,021) 4.90% 01/04/99 $1,210,021 $ 1,210,021
- -----------------------------------------------------------------------------------
TOTAL INVESTMENTS 101.49% 22,856,767
- -----------------------------------------------------------------------------------
(cost $22,050,586)
Other assets and liabilities, net
(1.49)% (335,189)
-----------
NET ASSETS 100% $22,521,578
-----------
See notes to portfolios of investments.
</TABLE>
44
<PAGE>
<TABLE>
INCOME FUND
- ---------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ---------------------------------------------------------------------------------------
<CAPTION>
COMMON STOCKS 82.60% SHARES VALUE
<S> <C> <C>
BANKS 3.63%
- ---------------------------------------------------------------------------------------
Bank One Corp. 1,500 $ 76,594
Citigroup, Inc. 3,000 148,500
F N B Corp. 2,500 70,625
Mellon Bank Corp. 1,000 68,750
Wells Fargo & Co. 1,000 39,937
-----------
404,406
CHEMICAL & PHARMACEUTICALS 2.54%
- ---------------------------------------------------------------------------------------
Pharmacia & Upjohn, Inc. 3,000 169,875
Warner-Lambert Co. 1,500 112,781
-----------
282,656
ELECTRIC SERVICES 12.34%
- ---------------------------------------------------------------------------------------
Baltimore Gas & Electric Co. 3,000 92,625
Central & South West Corp. 5,000 137,187
DQE, Inc. 4,000 175,750
Houston Industries 4,000 128,500
PECO Energy Co. 4,500 187,313
Public Service Enterprise Group 4,500 180,000
Southern Co. 4,500 130,781
Texas Utilities 4,500 210,094
Western Resources, Inc. 4,000 133,000
-----------
1,375,250
FINANCIAL SERVICES 3.93%
- ---------------------------------------------------------------------------------------
Dun & Bradstreet Corp. 4,000 126,250
Fannie Mae 1,200 88,800
J.P. Morgan & Co. 1,000 105,062
Waddell & Reed Financial Inc., Class A 5,000 118,438
-----------
438,550
FOOD & BEVERAGES 2.88%
- ---------------------------------------------------------------------------------------
H.J. Heinz Co. 3,500 198,188
PepsiCo, Inc. 3,000 122,812
-----------
321,000
HEALTHCARE 0.56%
- ---------------------------------------------------------------------------------------
American Health Properties, Inc. 3,000 61,875
INSTRUMENTS 3.03%
- ---------------------------------------------------------------------------------------
Baxter International, Inc. 2,000 128,625
Flowserve Corp. 6,000 99,375
Martin Industries, Inc. 40,000 110,000
-----------
338,000
45
<PAGE>
<CAPTION>
INCOME FUND
- ---------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ---------------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
<S> <C> <C>
INSURANCE 0.68%
- ---------------------------------------------------------------------------------------
Conseco, Inc. 2,500 $ 76,406
MANUFACTURING 2.37%
- ---------------------------------------------------------------------------------------
Ampco-Pittsburgh Corp. 20,000 217,500
US Industries, Inc. 2,500 46,562
-----------
264,062
MOTOR VEHICLES 1.58%
- ---------------------------------------------------------------------------------------
Ford Motor Co. 3,000 176,062
NATURAL GAS TRANSMISSION & DISTRIBUTION 6.62%
- ---------------------------------------------------------------------------------------
AGL Resources, Inc. 5,300 122,231
Consolidated Natural Gas Co. 3,000 162,000
MCN Energy Group, Inc. 4,000 76,250
New Jersey Resources Corp. 5,000 197,500
Peoples Energy 4,500 179,437
-----------
737,418
OIL & GAS EXTRACTION 1.79%
- ---------------------------------------------------------------------------------------
Enron Corp. 3,500 199,719
PETROCHEMICAL & COAL PRODUCTS 1.28%
- ---------------------------------------------------------------------------------------
Lyondell Petrochemical Co. 7,923 142,614
PETROLEUM REFINING 3.99%
- ---------------------------------------------------------------------------------------
Chevron Corp. 1,500 124,406
Exxon Corp. 2,000 146,250
Mobil Corp. 2,000 174,250
-----------
444,906
PHOTOGRAPHY 2.76%
- ---------------------------------------------------------------------------------------
Eastman Kodak 1,000 72,000
Xerox Corp. 2,000 236,000
-----------
308,000
PUBLISHING 0.62%
- ---------------------------------------------------------------------------------------
Hollinger International, Inc., Class A 5,000 69,688
46
<PAGE>
<CAPTION>
INCOME FUND
- ---------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ---------------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS 3.98%
- ---------------------------------------------------------------------------------------
Amresco Capital Trust, Inc. 10,000 $ 95,000
Camden Properties Trust 4,000 104,000
Equity Resident Property Trust 2,500 101,094
Essex Property Trust, Inc. 3,000 89,250
Walden Residential Properties 2,500 54,375
-----------
443,719
RESTAURANTS 0.55%
- ---------------------------------------------------------------------------------------
Luby's Cafeterias, Inc. 4,000 61,750
SHIPPING 0.47%
- ---------------------------------------------------------------------------------------
Knightsbridge Tankers, Ltd. 2,500 52,031
STEEL 0.52%
- ---------------------------------------------------------------------------------------
USX-US Steel Group 2,500 57,500
TELECOMMUNICATIONS 22.42%
- ---------------------------------------------------------------------------------------
AT&T Corp. 2,000 150,500
Bell Atlantic Corp. 5,304 281,112
Century Telephone Enterprises 4,000 270,000
Frontier Corp. 6,500 221,000
GTE Corp. 3,500 227,500
Lucent Technologies, Inc. 2,500 275,000
SBC Communications, Inc. 4,000 214,500
Sprint Corp. PCS Group 1,500 34,688
Sprint Corp. 3,000 252,375*
Tele-Communications, Inc., Class A 2,000 110,625*
Telefonica de Espana, S.A., ADR 1,020 138,083
US West, Inc. 5,000 323,125
-----------
2,498,508
TOBACCO 4.06%
- ---------------------------------------------------------------------------------------
Philip Morris, Inc. 3,750 200,625
RJR Nabisco Holdings Corp. 8,500 252,344
-----------
452,969
- ---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 9,207,089
- ---------------------------------------------------------------------------------------
(cost $6,781,924)
PREFERRED STOCKS 5.41%
ELECTRIC SERVICES 1.60%
- ---------------------------------------------------------------------------------------
Duke Energy Capital Trust, 7.20% 7,000 178,500
47
<PAGE>
<CAPTION>
INCOME FUND
- ---------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ---------------------------------------------------------------------------------------
PREFERRED STOCKS SHARES VALUE
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS 3.16%
- ---------------------------------------------------------------------------------------
First Industrial Realty, 7.90%, Series E 2,500 $ 53,450
Fleet Capital Trust, 7.05%, Series III 7,000 172,410
Public Storage, Inc., 8.875% Series G 5,000 126,250
-----------
352,110
TELECOMMUNICATIONS 0.65%
- ---------------------------------------------------------------------------------------
Telebras Holders, ADR 1,000 72,688
- ---------------------------------------------------------------------------------------
TOTAL PREFERRED STOCKS 603,298
- ---------------------------------------------------------------------------------------
(cost $628,975)
<CAPTION>
WRITTEN OPTIONS -0.28% CONTRACTS
<S> <C> <C>
TELECOMMUNICATIONS
- ---------------------------------------------------------------------------------------
Lucent Technologies, Call, Strike Price 110,
Expiration January 1999 (premium $(3,595)) (10) (4,375)
Lucent Technologies, Call, Strike Price 100,
Expiration April 1999 (premium $(5,767)) (15) (26,438)
- ---------------------------------------------------------------------------------------
TOTAL WRITTEN OPTIONS (30,813)
- ---------------------------------------------------------------------------------------
(cost $(9,362))
<CAPTION>
PRINCIPAL
CONVERTIBLE SECURITIES 1.66% AMOUNT
<S> <C> <C>
GOLD AND SILVER MINING
- ---------------------------------------------------------------------------------------
Ashanti Capital, Ltd. Exchangeable Note, 5.50%,
03/15/03 exchangeable at maturity into Shares or
Global Depository Shares of Ashanti Goldfields
Company Limited $ 203,750 185,000
- ---------------------------------------------------------------------------------------
TOTAL CONVERTIBLE SECURITIES 185,000
- ---------------------------------------------------------------------------------------
(cost $203,750)
CORPORATE BONDS 3.01%
BANKS 2.22%
- ---------------------------------------------------------------------------------------
Korea Development Bank, 7.00%, 7/15/99 250,000 247,188
INSTRUMENTS 0.79%
- ---------------------------------------------------------------------------------------
Weirton Steel, 10.75%, 6/1/05 100,000 88,000
- ---------------------------------------------------------------------------------------
TOTAL CORPORATE BONDS 335,188
- ---------------------------------------------------------------------------------------
(cost $351,544)
48
<PAGE>
<CAPTION>
INCOME FUND
- ---------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ---------------------------------------------------------------------------------------
PRINCIPAL
REPURCHASE AGREEMENT 7.30% AMOUNT VALUE
<S> <C> <C>
Joint Tri-Party Repurchase Agreement, Donaldson,
Lufkin & Jenrette, 12/31/98, 4.90% due 1/4/99,
repurchase price $813,579, collateralized by U.S.
Treasury securities held in a joint tri-party
repurchase account (cost $813,136) $ 813,136 $ 813,136
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENTS 99.70% 11,112,898
- ---------------------------------------------------------------------------------------
(cost $8,769,967)
Other assets and liabilities, net 0.30% 33,465
-----------
NET ASSETS 100% $11,146,363
-----------
See notes to portfolios of investments.
</TABLE>
49
<PAGE>
<TABLE>
ALL AMERICAN EQUITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
<CAPTION>
COMMON STOCKS 86.10% SHARES VALUE
<S> <C> <C>
AIRCRAFT & AEROSPACE 0.65%
- -----------------------------------------------------------------------------------------
Allied Signal, Inc. 2,200 $ 97,488
The Boeing Co. 2,950 96,244
Raytheon Company, Class A 191 9,872
Rockwell International Corp. 2,000 97,125
-----------
300,729
APPAREL 0.66%
- -----------------------------------------------------------------------------------------
Tommy Hilfiger 5,100 306,000*
BANKS 4.16%
- -----------------------------------------------------------------------------------------
Banc One Corp. 6,436 328,638
BankAmerica Corp. 11,358 682,900
Chase Manhattan Corp. 6,000 408,375
Citigroup, Inc. 10,500 519,750
-----------
1,939,663
BEVERAGES 3.64%
- -----------------------------------------------------------------------------------------
Anheuser Busch Co. 2,000 131,250
Coca-Cola Co. 13,000 869,375
PepsiCo, Inc. 17,000 695,937
-----------
1,696,562
BROADCAST/MEDIA 2.20%
- -----------------------------------------------------------------------------------------
Liberty Media Group, Class A 1,237 56,979*
MediaOne Group, Inc. 1,800 84,600*
Tele-Communications, Class A 14,000 774,375*
Viacom, Inc., Class A 1,500 110,344*
-----------
1,026,298
BUSINESS SERVICES 1.95%
- -----------------------------------------------------------------------------------------
Billing Concepts Corp. 27,000 297,000*
Cendant Corp. 22,000 419,375
Dun & Bradstreet Corp. 2,000 63,125
Gartner Group 6,000 127,500*
-----------
907,000
CHEMICALS 0.92%
- -----------------------------------------------------------------------------------------
Dow Chemical Co. 1,000 90,937
E.I. Du Pont de Nemours & Co. 6,400 339,600
-----------
430,537
50
<PAGE>
<CAPTION>
ALL AMERICAN EQUITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
<S> <C> <C>
COMPUTER & OFFICE EQUIPMENT 5.21%
- -----------------------------------------------------------------------------------------
Apple Computer, Inc. 4,000 $ 163,750*
Cisco Systems, Inc. 6,750 626,484*
COMPAQ Computer Corp. 5,000 209,687
Hewlett-Packard Co. 4,000 273,250
IBM Corp. 5,600 1,034,600
Minnesota Mining & Manufacturing Co. 1,700 120,913
-----------
2,428,684
DATA PROCESSING & SOFTWARE 6.89%
- -----------------------------------------------------------------------------------------
Automatic Data Processing, Inc. 1,000 80,188
ChoicePoint, Inc. 3,000 193,500*
Computer Associates International 5,000 213,125
First Data Corp. 5,000 158,437
Microsoft Corp. 15,200 2,108,050*
National Data Corp. 3,000 146,063
Oracle Corp. 7,212 311,017*
-----------
3,210,380
ELECTRIC UTILITY 0.12%
- -----------------------------------------------------------------------------------------
P G & E Corp. 1,700 53,550
ELECTRONICS & COMPONENTS 2.90%
- -----------------------------------------------------------------------------------------
Emerson Electric Co. 1,800 108,900
Intel Corp. 8,400 995,925
Motorola, Inc. 4,000 244,250
-----------
1,349,075
ENTERTAINMENT 1.11%
- -----------------------------------------------------------------------------------------
The Walt Disney Co. 11,100 333,000
Time Warner, Inc. 3,000 186,187
-----------
519,187
FINANCIAL SERVICES 7.71%
- -----------------------------------------------------------------------------------------
American Express Co. 4,000 409,000
Associates First Capital Corp., Class A 1,096 46,443
Conseco, Inc. 11,500 351,469
Fannie Mae 18,000 1,332,000
Federated Investors, Inc. Class B 12,100 219,313
Freddie Mac 5,800 373,737
J.P. Morgan & Co., Inc. 1,200 126,075
MBIA, Inc. 5,000 327,812
Pilgrim America Capital Corp. 10,000 250,000*
Washington Mutual, Inc. 4,000 152,750
-----------
3,588,599
51
<PAGE>
<CAPTION>
ALL AMERICAN EQUITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
<S> <C> <C>
FOOD 0.63%
- -----------------------------------------------------------------------------------------
Archer-Daniels-Midland Co. 2,430 $ 41,766
H.J. Heinz Co. 1,500 84,938
Kellogg Co. 1,800 61,425
Sara Lee Corp. 3,800 107,112
-----------
295,241
FUNERAL SERVICES 0.89%
- -----------------------------------------------------------------------------------------
Equity Corp. International 14,000 371,875*
Loewen Group, Inc. 5,000 42,188
-----------
414,063
HEALTHCARE & EQUIPMENT 3.06%
- -----------------------------------------------------------------------------------------
American Med Security Group 7,000 100,187
Columbia/HCA Healthcare Corp. 3,600 89,100
Guidant Corp. 704 77,616
Humana, Inc. 9,000 160,312*
Johnson & Johnson Co. 10,000 838,750
Prime Medical Services, Inc. 5,000 36,563*
United Wisconsin Services 7,000 60,813
Veterinary Centers, Inc. 3,000 59,813*
-----------
1,423,154
HOUSEHOLD APPLIANCES 3.51%
- -----------------------------------------------------------------------------------------
General Electric Co. 16,000 1,633,000
HOUSEHOLD PRODUCTS 2.29%
- -----------------------------------------------------------------------------------------
Colgate Palmolive 1,400 130,025
Gillette Co. 2,800 135,275
Helen of Troy 11,000 161,563*
Proctor & Gamble Co. 7,000 639,187
-----------
1,066,050
INSURANCE 3.35%
- -----------------------------------------------------------------------------------------
Allstate Corp. 6,594 254,693
American Annuity Group, Inc. 9,700 223,100
American International Group 8,500 821,313
Hartford Financial Services Group, Inc. 4,800 263,400
-----------
1,562,506
INVESTMENT TRUSTS 1.06%
- -----------------------------------------------------------------------------------------
Standard & Poor's 500 Depositary Receipts 4,000 492,125
52
<PAGE>
<CAPTION>
ALL AMERICAN EQUITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
<S> <C> <C>
MACHINERY 0.32%
- -----------------------------------------------------------------------------------------
Caterpillar, Inc. 3,200 $ 147,200
MOTOR VEHICLES & PARTS 1.34%
- -----------------------------------------------------------------------------------------
Autozone, Inc. 3,000 98,813*
Ford Motor Co. 4,000 234,750
General Motors Corp. 3,000 214,687
ITT Industries, Inc. 400 15,900
Lo-Jack Corp. 5,000 59,375*
-----------
623,525
OFFICE EQUIPMENT 0.30%
- -----------------------------------------------------------------------------------------
Xerox Corp. 1,200 141,600
OIL & GAS EXTRACTION 0.41%
- -----------------------------------------------------------------------------------------
Atlantic Richfield Co. 1,200 78,300
Enron Corp. 2,000 114,125
-----------
192,425
PETROLEUM REFINING 3.31%
- -----------------------------------------------------------------------------------------
AMOCO Corp. 3,400 205,275
Chevron Corp. 2,600 215,637
Exxon Corp. 5,800 424,125
Mobil Corp. 2,000 174,250
Phillips Petroleum Co. 1,100 46,888
Royal Dutch Petroleum 3,600 172,350
Texaco, Inc. 4,000 211,500
Williams Companies, Inc. 3,000 93,563
-----------
1,543,588
PHARMACEUTICALS 9.63%
- -----------------------------------------------------------------------------------------
Abbott Laboratories 6,000 294,000
American Home Products 4,400 247,775
Baxter International, Inc. 1,100 70,744
Biogen, Inc. 1,000 83,000*
Bristol-Myers Squibb Co. 3,400 454,963
Eli Lilly & Co. 6,396 568,444
Merck & Co., Inc. 7,000 1,033,812
Pfizer, Inc. 7,800 978,412
Schering-Plough Corp. 9,600 530,400
Warner-Lambert Co. 3,000 225,563
-----------
4,487,113
PHOTOGRAPHY 0.51%
- -----------------------------------------------------------------------------------------
Eastman Kodak Co. 3,300 237,600
53
<PAGE>
<CAPTION>
ALL AMERICAN EQUITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS 0.55%
- -----------------------------------------------------------------------------------------
Felcor Lodging Trust, Inc. 5,000 $ 115,313
Weeks Corp. 5,000 140,937
-----------
256,250
RESTAURANTS 0.57%
- -----------------------------------------------------------------------------------------
McDonald's Corp. 2,800 214,550
Tricon Global Restaurants 1,000 50,125*
-----------
264,675
RETAIL 5.10%
- -----------------------------------------------------------------------------------------
Claires Stores, Inc. 9,000 184,500
Garden Ridge Corp. 8,000 72,500*
Home Depot, Inc. 8,400 513,975
K Mart Corp. 10,000 153,125*
Lowes Companies 6,000 307,125
OfficeMax, Inc. 15,000 183,750*
Sears, Roebuck & Co. 2,400 102,000
Sterling Comm, Inc. 2,000 90,000*
Toys "R" Us, Inc. 2,100 35,438*
Wal-Mart Stores, Inc. 9,000 732,937
-----------
2,375,350
SANITARY SERVICES 0.63%
- -----------------------------------------------------------------------------------------
Browning Ferris Industries, Inc. 1,600 45,500
Waste Management, Inc. 5,305 247,346
-----------
292,846
TELECOMMUNICATIONS 8.77%
- -----------------------------------------------------------------------------------------
AT&T Corp. 4,000 301,000
Airtouch Communications, Inc. 2,000 144,250*
Ameritech Corp. 7,600 481,650
Bell Atlantic Corp. 5,810 307,930
Bellsouth Corp. 9,200 458,850
GTE Corp. 6,000 390,000
Lucent Technologies, Inc. 6,000 660,000
MCI Worldcom, Inc. 3,359 240,974*
SBC Communications, Inc. 14,000 750,750
Sprint Corp PCS Group 1,200 27,750
Sprint Corp. 2,400 201,900*
US West, Inc. 1,849 119,492
-----------
4,084,546
54
<PAGE>
<CAPTION>
ALL AMERICAN EQUITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
<S> <C> <C>
TOBACCO 1.75%
- -----------------------------------------------------------------------------------------
Philip Morris, Inc. 15,200 $ 813,200
- -----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 40,102,321
- -----------------------------------------------------------------------------------------
(cost $22,249,071)
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT 14.28% AMOUNT
<S> <C> <C>
Joint Tri-Party Repurchase Agreement, Donaldson, Lufkin
& Jenrette, 12/31/98, 4.90%, repurchase price $6,652,741,
collateralized by U.S. Treasury securities held in a
joint tri-party repurchase account (cost $6,649,121) $6,649,121 6,649,121
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS 100.38% 46,751,442
- -----------------------------------------------------------------------------------------
(cost $28,898,192)
Other assets and liabilities, net (0.38%) (175,064)
-----------
NET ASSETS 100% $46,576,378
-----------
See notes to portfolios of investments.
</TABLE>
55
<PAGE>
<TABLE>
REAL ESTATE FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
<CAPTION>
COMMON STOCKS 84.33% SHARES VALUE
<S> <C> <C>
REAL ESTATE INVESTMENT TRUSTS 62.66%
APARTMENTS 14.47%
- -----------------------------------------------------------------------------------------
Apartment Investment & Management Co. 11,500 $ 427,656
Berkshire Realty Co., Inc. 26,400 250,800
Equity Resident Property Trust 9,169 370,771
Post Properties, Inc. 5,100 196,031
----------
1,245,258
DIVERSIFIED 11.45%
- -----------------------------------------------------------------------------------------
Entertainment Properties Trust 19,600 333,200
Glenborough Realty Trust, Inc. 15,700 319,887
Spieker Properties, Inc. 9,600 332,400
----------
985,487
HEALTHCARE 5.50%
- -----------------------------------------------------------------------------------------
Meditrust Paired Certificate 31,300 473,413
HOTEL/RESTAURANT 0.59%
- -----------------------------------------------------------------------------------------
Legacy Hotels 12,100 50,548
MANUFACTURED HOMES 3.49%
- -----------------------------------------------------------------------------------------
Manufactured Home Communities, Inc. 12,000 300,750
OFFICE PROPERTY MANAGEMENT 16.75%
- -----------------------------------------------------------------------------------------
Alexandria Real Estate Equities, Inc. 12,100 374,344
Boston Properties, Inc. 13,000 396,500
Equity Office Properties Trust 16,200 388,800
Tower Realty Trust, Inc. 14,000 281,750
----------
1,441,394
REGIONAL MALLS 5.95%
- -----------------------------------------------------------------------------------------
General Growth Properties 3,500 132,562
Simon Property Group, Inc. 13,300 379,050
----------
511,612
WAREHOUSE/INDUSTRIAL 4.46%
- -----------------------------------------------------------------------------------------
Reckson Associates Realty Corp. 17,300 383,844
OTHER REAL ESTATE 21.67%
BUILDING MAINTENANCE & SERVICE 3.74%
- -----------------------------------------------------------------------------------------
ABM Industries, Inc. 9,300 322,012
56
<PAGE>
<CAPTION>
REAL ESTATE FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
<S> <C> <C>
DIVERSIFIED 2.65%
- -----------------------------------------------------------------------------------------
EdperBrascan Corp., Class A 16,400 $ 228,016
FINANCIAL SERVICES 2.89%
- -----------------------------------------------------------------------------------------
Capital Trust, Class A 41,400 248,400
INDUSTRIAL CONSTRUCTION 0.80%
- -----------------------------------------------------------------------------------------
Flour City International, Inc. 20,000 68,750*
INVESTMENT COMPANIES 0.02%
- -----------------------------------------------------------------------------------------
Concord Pacific Group, Inc. 4,588 2,096
OFFICE PROPERTY MANAGEMENT 3.23%
- -----------------------------------------------------------------------------------------
Oxford Properties Group, Inc. 23,400 277,990
REAL ESTATE DEVELOPMENT 3.48%
- -----------------------------------------------------------------------------------------
Brookfield Properties Corp. 24,400 299,426
RESORTS 4.86%
- -----------------------------------------------------------------------------------------
Resortquest International, Inc. 12,500 182,813
Vail Resorts, Inc. 10,700 235,400*
----------
418,213
- -----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 7,257,209
- -----------------------------------------------------------------------------------------
(cost $8,194,256)
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT 15.38% AMOUNT
<S> <C> <C>
Joint Tri-Party Repurchase Agreement, Donaldson, Lufkin &
Jenrette, 12/31/98, 4.90% due 1/4/99, repurchase price
$1,323,861, collateralized by U.S. Treasury securities
held in a joint tri-party repurchase account (cost
$1,323,141) $1,323,141 1,323,141
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS 99.71% 8,580,350
- -----------------------------------------------------------------------------------------
(cost $9,517,397)
Other assets and liabilities, net 0.29% 25,206
----------
NET ASSETS 100% $8,605,556
----------
See notes to portfolios of investments.
</TABLE>
57
<PAGE>
<TABLE>
CHINA REGION OPPORTUNITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
<CAPTION>
COMMON STOCKS AND WARRANTS 98.65% SHARES VALUE
<S> <C> <C>
APPAREL 4.55%
- -----------------------------------------------------------------------------------------
Chaifa Holdings Ltd. 840,800 $ 9,116*
Giordano International Ltd. 299,000 55,959
Li & Fung Ltd. 266,000 551,048
Yue Yuen Industrial Holdings Ltd. 49,200 93,350
-----------
709,473
BANKING/FINANCIAL SERVICES 10.06%
- -----------------------------------------------------------------------------------------
HSBC Holdings Ltd. 62,949 1,568,119
BEVERAGES 0.87%
- -----------------------------------------------------------------------------------------
Guangdong Brewery Holdings Ltd. 1,073,000 61,630
Vitasoy International Holdings Ltd. 200,000 73,261
-----------
134,891
CHEMICALS & ALLIED PRODUCTS 3.90%
- -----------------------------------------------------------------------------------------
Jilin Chemical Industrial Co. Ltd., Class H 2,308,000 120,649
Shanghai Petrochemical, Class H 2,932,000 264,908
Tianjin Bohai Chemical, Class H 1,248,000 53,963
Yizheng Chemical Fibre, Class H 1,844,000 168,986*
-----------
608,506
COMPUTERS & OFFICE EQUIPMENT 2.67%
- -----------------------------------------------------------------------------------------
Acer, Inc., GDR 16,406 93,926*
Founder Hong Kong Ltd. 860,586 189,943
GVC Corp., GDR 89 401*
Legend Holdings Ltd. 100,000 35,495
Vanda Systems & Communications Holdings Ltd. 1,384,000 96,463
-----------
416,228
CONGLOMERATES 13.69%
- -----------------------------------------------------------------------------------------
China Vanke Co. Ltd. 73,018 20,074
Citic Pacific Ltd. 228,200 491,887
First Pacific Co. Ltd. 635,230 303,365
Guangdong Investments 644,000 128,840
Guangzhou Investment Co. Ltd. 500,000 49,693
Hutchinson Whampoa 96,000 678,404
Shanghai Industrial Holdings Ltd. 229,000 462,575
-----------
2,134,838
CONSTRUCTION EQUIPMENT 0.13%
- -----------------------------------------------------------------------------------------
Shanghai Jintai Machinery, Group B 355,750 20,989*
58
<PAGE>
<CAPTION>
CHINA REGION OPPORTUNITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
<S> <C> <C>
CREDIT & FINANCIAL SERVICES 2.50%
- -----------------------------------------------------------------------------------------
Aeon Credit Service 994,000 $ 205,277
Guoco Group Ltd. 110,000 184,573
-----------
389,850
ELECTRIC GENERATION 0.78%
- -----------------------------------------------------------------------------------------
Dongfang Electrical Machinery Co. Ltd., Class H 766,000 44,491
Harbin Power Equipment Co. Ltd., Class H 1,042,000 76,661
-----------
121,152
ELECTRONIC EQUIPMENT 5.87%
- -----------------------------------------------------------------------------------------
ASM Pacific Technology Ltd. 686,000 298,834
GP Batteries International Ltd. 30,000 64,000
Samsung Electronics, GDR 144A 3,512 53,119
Varitronix International 267,000 499,703
Yageo Corp. 1 7*
-----------
915,663
FURNITURE 0.17%
- -----------------------------------------------------------------------------------------
Lamex Holdings Ltd. 1,096,551 26,892
GLASS & CEMENT PRODUCTS 0.07%
- -----------------------------------------------------------------------------------------
Shanghai Yaohua Pilkington Glass Co. Ltd., Group B 125,750 10,689
GROCERIES - WHOLESALE 4.00%
- -----------------------------------------------------------------------------------------
Guangnan Holdings Ltd. 340,000 77,676
NG Fung Hong Ltd. 608,000 545,407
-----------
623,083
HEAVY CONSTRUCTION 0.85%
- -----------------------------------------------------------------------------------------
Road King Infrastructure Ltd. 180,000 132,428
HOTELS 1.28%
- -----------------------------------------------------------------------------------------
Shanghai New Asia, Group B 1,558,128 199,440*
HOUSEHOLD APPLIANCES 8.24%
- -----------------------------------------------------------------------------------------
Guangdong Kelon Electronics Holdings 1,269,000 1,130,169
Shenzhen Konka Electronic Holdings, Group B 304,703 153,775
-----------
1,283,944
59
<PAGE>
<CAPTION>
CHINA REGION OPPORTUNITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
<S> <C> <C>
INDUSTRIAL/COMMERCIAL MACHINERY 1.61%
- -----------------------------------------------------------------------------------------
First Tractor Co. Ltd., Class H 198,000 $ 45,235
Shanghai Automation Instrumentation, Group B 1,708,863 160,633*
Shanghai Diesel Engine Ltd., Group B 376,320 45,158
-----------
251,026
METAL INDUSTRIES 0.49%
- -----------------------------------------------------------------------------------------
Shenzhen Fangda Co. Ltd. 157,800 76,990
MOTOR VEHICLES & TRANSPORTATION 5.35%
- -----------------------------------------------------------------------------------------
Qingling Motors Co. Ltd., Class H 2,054,000 360,555
Shanghai Dazhong, Group B 1,121,502 473,274*
-----------
833,829
OFFICE SUPPLIES 1.51%
- -----------------------------------------------------------------------------------------
China First Pencil Company Ltd. 919,165 117,653
Shanghai Hero Pen, Group B 763,378 118,324*
-----------
235,977
PETROLEUM REFINING 1.79%
- -----------------------------------------------------------------------------------------
Zhenhai Refining and Chemical Co. Ltd., Class H 1,815,000 278,777
PHARMACEUTICALS 0.21%
- -----------------------------------------------------------------------------------------
Livzon Pharmaceutical, Group B 237,774 31,918*
PHOTOGRAPHY 0.28%
- -----------------------------------------------------------------------------------------
China HK Photo Products Holdings 450,000 43,562
REAL ESTATE DEVELOPERS 10.07%
- -----------------------------------------------------------------------------------------
Cheung Kong Holdings Ltd. 50,000 359,789
China Overseas Land & Investment 970,000 131,460
China Resources Enterprise Ltd. 184,000 286,179
Lai Sun Development Co. Ltd. 40,000 5,008
New World Development Co. 142,095 357,640
Shanghai Lujiazhui Finance, Group B 217,060 69,893
Shum Yip Investment Ltd. 350,000 81,316
Silver Grant International Industries Ltd. 940,000 97,062
Sun Hung Kai Properties HK 25,000 182,315
-----------
1,570,662
60
<PAGE>
<CAPTION>
CHINA REGION OPPORTUNITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
<S> <C> <C>
RETAIL 3.18%
- -----------------------------------------------------------------------------------------
Amway Asia Pacific Ltd. 5,000 $ 46,250
China Everbright-IHD Pacific Ltd. 200,000 87,124*
China Everbright-IHD Pacific Ltd., Warrants 20,000 2,297*
Glorious Sun Enterprises Ltd. 984,000 175,270
Shanghai Friendship & O/S Chinese, Group B 1,304,014 185,170
-----------
496,111
RUBBER & PLASTICS PRODUCTS 0.09%
- -----------------------------------------------------------------------------------------
Shanghai Tyre & Rubber Co., Group B 146,300 14,630*
SECURITY & COMMODITY BROKERS 0.00%
- -----------------------------------------------------------------------------------------
Peregrine Investment Holdings Ltd. 640,000 0*
TELECOMMUNICATIONS 1.88%
- -----------------------------------------------------------------------------------------
Hong Kong Telecommunications Ltd. 87,540 153,101
Shanghai Post & Telecom, Group B 613,210 140,425*
-----------
293,526
TEXTILE MILL PRODUCTS 0.90%
- -----------------------------------------------------------------------------------------
First Sign International Holdings 620,000 26,008
Shanghai Haixin Co., Group B 662,350 113,924
-----------
139,932
TRAFFIC SYSTEM MANAGEMENT 0.56%
- -----------------------------------------------------------------------------------------
Anhui Expressway Co. Ltd. 726,000 82,462
GZI Transport Ltd. 25,769 5,055
GZI Transport Ltd., Warrants 5,153 0*
-----------
87,517
UNIT INVESTMENT TRUST 0.51%
- -----------------------------------------------------------------------------------------
Cathay Investment Fund 350,000 78,876
UTILITIES 6.08%
- -----------------------------------------------------------------------------------------
Guangdong Electric Power Development Co., Group B 205,400 55,939
Hong Kong & China Gas Co. 306,245 389,348
Huaneng Power International, Inc., ADR 20,000 290,000*
Shandong Huaneng Power Company Ltd., ADR 46,600 212,613
-----------
947,900
61
<PAGE>
<CAPTION>
CHINA REGION OPPORTUNITY FUND
- -----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- -----------------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
<S> <C> <C>
WATER TRANSPORTATION & SERVICES 4.51%
- -----------------------------------------------------------------------------------------
China International Marine Container, Group B 884,359 $ 417,775
China Merchants Shekou Port Service Co., Ltd. 146,040 26,767
Continental Mariner Investment 440,000 58,496
Cosco Pacific Ltd. 350,000 144,561
Guangzhou Shipyard International Co., Class H 424,000 25,721*
Pacific Ports Co. Ltd. 300,000 28,460
Shenzhen Chiwan Wharf Holdings Ltd. 5,913 611
-----------
702,391
- -----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS AND WARRANTS 15,379,809
- -----------------------------------------------------------------------------------------
(cost $27,690,258)
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT 1.89% AMOUNT
<S> <C> <C>
Joint Tri-Party Repurchase Agreement, Donaldson, Lufkin
& Jenrette, 12/31/98, 4.90%, due 1/4/99, repurchase price
$295,198, collateralized by U.S. Treasury securities
held in a joint tri-party repurchase account (cost
$295,037) $ 295,037 295,037
- -----------------------------------------------------------------------------------------
TOTAL INVESTMENTS 100.54% 15,674,846
- -----------------------------------------------------------------------------------------
(cost $27,985,295)
Other assets and liabilities, net (0.54%) (84,010)
-----------
NET ASSETS 100% $15,590,836
-----------
See notes to portfolios of investments.
</TABLE>
62
<PAGE>
<TABLE>
GLOBAL RESOURCES FUND
- ---------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ---------------------------------------------------------------------------------------
<CAPTION>
COMMON STOCKS AND WARRANTS 94.06% SHARES VALUE
<S> <C> <C>
CHEMICALS & ALLIED PRODUCTS 16.28%
- ---------------------------------------------------------------------------------------
BF Goodrich Co. 3,000 $ 107,625
Brunswick Technologies, Inc. 24,000 153,000*
Crompton & Knowles Corp. 11,500 237,906*
Dexter Corp. 3,000 94,312
Dow Chemical Co. 3,000 272,812
E.I. Du Pont de Nemours & Co. 3,800 201,638
Ferro Corp. 6,000 156,000
FMC Corp. 2,000 112,000*
IMC Global, Inc. 6,200 132,525
Lyondell Petrochemical Co. 3,500 63,000
N L Industries 10,000 141,875
Olin Corp. 3,000 84,938
Potash Corp Sasckatchewan 1,000 63,875
PPG Industries, Inc. 4,000 233,000
Rohm & Haas Co. 5,000 150,625
Solutia, Inc. 4,000 89,500
Union Carbide Corp. 2,000 85,000
-----------
2,379,631
GOLD & SILVER MINING 0.98%
- ---------------------------------------------------------------------------------------
Barrick Gold Corp. 4,400 85,800
Goldbeam Resources Ltd. 300,000 0+
Placer Dome, Inc. 5,000 57,500
-----------
143,300
METAL & MINERAL MINING 5.09%
- ---------------------------------------------------------------------------------------
Aber Resources Ltd. 15,000 84,204*
Aluminum Co. of America 2,000 149,125
Boliden Ltd. 40,000 100,522*
Osmium Holdings S.A. (RS) 104 0
Pasminco Ltd. 200,000 151,974
Phelps Dodge Corp. 2,500 127,188
Zimasco Consolidated Enterprises Ltd. (RS) 40,000 131,520
-----------
744,533
MINING SERVICES 1.86%
- ---------------------------------------------------------------------------------------
Auspex Minerals Ltd. 250,000 37,533*
Dynatec Corp. 500,000 130,548*
Freeport-McMoRan Copper & Gold 10,000 104,375
-----------
272,456
NATURAL GAS PRODUCTION & DISTRIBUTION 5.39%
- ---------------------------------------------------------------------------------------
Australian Gas & Light Co. 35,000 252,100
El Paso Energy Gas Co. 6,200 215,837
63
<PAGE>
<CAPTION>
GLOBAL RESOURCES FUND
- ---------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ---------------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
<S> <C> <C>
NATURAL GAS PRODUCTION & DISTRIBUTION (CONT'D)
- ---------------------------------------------------------------------------------------
Enron Corp. 4,000 $ 228,250
KN Energy, Inc. 2,500 90,938
-----------
787,125
OIL & GAS EXTRACTION 17.19%
- ---------------------------------------------------------------------------------------
Apache Corp. 7,000 177,187
Benz Energy Ltd. 100,000 30,026*
Conoco, Inc. 18,000 375,750*
EEX Corp. 6,666 46,662*
Enterprise Oil 27,000 132,414
EuroSov Energy plc 323,100 158,456*
Kerr-McGee Corp. 5,000 191,250
PennzEnergy Co. 7,500 122,344
Pennzoil Quaker State Co. 7,500 111,094*
Petro Canada 10,000 106,070
Phillips Petroleum Co. 6,000 255,750
Santos Ltd. 75,000 201,305
Sharpe Resources Corp. 804,750 278,406*
Unocal Corp. 3,500 102,156
Woodside Petroleum Co. 50,000 223,672
-----------
2,512,542
OIL & GAS FIELD SERVICES 6.29%
- ---------------------------------------------------------------------------------------
BJ Services Corp. 6,000 93,750*
CARBO Ceramics, Inc. 7,500 131,250
Coflexip S.A., ADR 4,000 128,500*
Diamond Offshore Drilling, Inc. 5,000 118,437
ENSCO International, Inc. 2,000 21,375
Global Marine, Inc. 2,000 18,375*
Input/Output, Inc. 5,500 40,219*
Tidewater, Inc. 5,000 115,938
Transocean Offshore, Inc. 5,000 134,062
Veritas Digicon, Inc. 9,000 117,000*
-----------
918,906
PAPER PRODUCTS 5.42%
- ---------------------------------------------------------------------------------------
International Paper Co. 4,500 201,656
Lafayette Paper Mills Ltd. 600,000 0*
Longview Fibre Co. 14,000 161,875
Potlatch Corp. 5,200 191,750
Temple-Inland, Inc. 4,000 237,250
-----------
792,531
64
<PAGE>
<CAPTION>
GLOBAL RESOURCES FUND
- ---------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ---------------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
<S> <C> <C>
PETROLEUM PRODUCTION & REFINING 31.25%
- ---------------------------------------------------------------------------------------
Ashland, Inc. 1,800 $ 87,075
Atlantic Richfield Co. 3,000 195,750
British Petroleum plc, ADR 8,000 760,000
Chevron Corp. 4,300 356,631
ELF Aquitane S.A., ADR 3,000 169,875
Exxon Corp. 7,700 563,062
Mobil Corp. 5,200 453,050
Royal Dutch Petroleum 7,300 349,488
Texaco, Inc. 6,800 359,550
Tosco Corp. 4,500 116,438
Total S.A., ADR 8,900 442,775*
Ultramar Diamond Shamrock Corp. 4,500 109,125
USX-Marathon Group 8,000 241,000
YPF S.A. Sponsored ADR 13,000 363,187
-----------
4,567,006
RAILROADS 1.78%
- ---------------------------------------------------------------------------------------
Canadian National Railway 5,008 260,696
STEEL MANUFACTURING 2.53%
- ---------------------------------------------------------------------------------------
Commercial Metals Co. 2,500 69,375
LTV Corp. 20,000 116,250
USX-U.S. Steel Group, Inc. 8,000 184,000
-----------
369,625
- ---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS AND WARRANTS 13,748,351
- ---------------------------------------------------------------------------------------
(cost $17,875,878)
<CAPTION>
WRITTEN OPTIONS (0.01%) CONTRACTS
<S> <C> <C>
PETROLEUM PRODUCTION & REFINING
- ---------------------------------------------------------------------------------------
British Petroleum plc, Strike Price 95, Call,
Expiration Jan. 1999 (premium $2,440) (20) (2,000)
<CAPTION>
PRINCIPAL
REPURCHASE AGREEMENT 5.95% AMOUNT
<S> <C> <C>
Joint Tri-Party Repurchase Agreement, Donaldson,
Lufkin & Jenrette, 12/31/98, 4.90%, due 1/4/99,
repurchase price $870,614, collateralized by U.S.
Treasury securities held in a joint tri-party
repurchase account (cost $870,147) $ 870,147 870,147
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENTS 100.00% 14,616,498
- ---------------------------------------------------------------------------------------
(cost $18,743,585)
Other assets and liabilities, net 0.00% 222
-----------
NET ASSETS 100% $14,616,720
-----------
See notes to portfolios of investments.
</TABLE>
65
<PAGE>
<TABLE>
WORLD GOLD FUND
- ----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ----------------------------------------------------------------------------------------
<CAPTION>
COMMON STOCKS AND WARRANTS 94.45% SHARES VALUE
<S> <C> <C>
DIAMOND MINING & EXPLORATION 0.11%
- ----------------------------------------------------------------------------------------
Brazilian Resources, Inc. 1,200,000 $ 117,493*
DIVERSIFIED OPERATIONS 0.08%
- ----------------------------------------------------------------------------------------
General Minerals Corp. 99,200 88,710*
GOLD EXPLORATION & DEVELOPMENT 7.93%
- ----------------------------------------------------------------------------------------
Ancash Resources, Special Warrants (RS) 800,000 0+
Argosy Mining Corp. 1,372,867 134,419*
Aurizon Mines Ltd. 483,500 220,920*
Balaclava Mines, Inc. 400,000 174,935*
Balaclava Mines, Warrants 200,000 22,193
Ballarat Goldfields 1,043,100 86,294*
Bro-X Minerals Ltd. 30,000 0*
Chilean Gold Ltd. (RS) 500,000 0*
Colony Pacific Explorations Ltd., Warrants 50,000 0*
Continental Precious Minerals, Inc. 200,000 55,483*
Cream Minerals Ltd. 200,000 80,940*
Cream Minerals Ltd., Warrants 200,000 0*
Crown Resources Corp. 460,900 936,203*
Eldorado Gold Corp. 660,200 172,376*
Fischer Watt Gold, Inc. 140,000 16,169*
Fischer Watt Gold, Inc. (RS) 800,000 46,400*
Franc-Or Resources Corp. 647,900 126,873*
Glencar Mining plc 872,438 529,390*
Gold Corp. of Africa Ltd. (RS) 200,000 50,000+
Goldcorp Inc., Class A Subordinate Voting Shares 130,000 738,251*
Great Basin Gold Ltd. 200,000 117,494*
Madison Enterprises Corp. 250,000 386,749*
Madison Enterprises Corp., Warrants 250,000 8,159*
Minefinders Corp., Ltd. 516,200 404,334*
Minorca Resources, Inc., Warrants 25,000 0*
Miramar Mining Corp. 395,400 335,522*
Miranda Mining (RS) 1,600,000 960,627*
Nevsun Resources 505,000 309,856*
Opawica Explorations, Inc. 400,000 234,987*+
Ormonde Mining plc 3,607,143 392,214*+
Otter Gold Mines Ltd. 500,000 281,888*
Otter Gold Mines Ltd., Warrants, Exp. 10/31/01 50,000 0
Otter Gold Mines Ltd., Warrants, Exp. 06/30/03 200,000 28,802
Platinova A/S 63,300 10,330*
Platinova Resources Ltd., Special Shares 36,700 6,468*
Rea Gold Corp. 2,400,000 0*
Solitario Resources Corp. 459,522 344,942*
Sons of Gwalia NL 338,435 962,303
Star Resources Corp. 1,976,400 148,359*+
Tanganyika Gold NL 29,179 6,437*
Treminco Resources Ltd. 200,000 36,554
Western Exploration & Development, Special Warrants (RS) 600,000 255,000+
------------
8,621,871
66
<PAGE>
<CAPTION>
WORLD GOLD FUND
- ----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ----------------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
<S> <C> <C>
GOLD PRODUCTION 0.21%
- ----------------------------------------------------------------------------------------
Lihir Gold Ltd. 200,000 $ 224,285*
INTERMEDIATE GOLD PRODUCERS 39.04%
- ----------------------------------------------------------------------------------------
Acacia Resources 2,974,200 4,401,554
Delta Gold, NL 6,628,100 10,073,015
Getchell Gold Corp. 500,000 13,625,000*
Greenstone Resources Ltd. 1,472,400 1,316,702*
Kinross Gold Corp. 768,250 1,770,185*
Meridian Gold, Inc. 1,900,000 11,161,880*
Resolute Ltd. 200,000 140,944
------------
42,489,280
JUNIOR GOLD PRODUCERS 8.83%
- ----------------------------------------------------------------------------------------
Canyon Resources Corp. 1,066,183 266,546*
Canyon Resources Corp., Warrants 166,667 0*
Dayton Mining Corp. 979,700 217,447*
Geomaque Explorations Ltd. 200,000 195,822*
IAMGOLD International African Mining 1,624,250 4,240,862*
Ranger Minerals NL 1,595,898 3,911,865
Ross Mining NL 1,180,848 651,261
Vista Gold Corp. 834,300 125,254*
------------
9,609,057
METAL MINING 5.21%
- ----------------------------------------------------------------------------------------
AMT International Mining Corp. 2,126,350 346,989*+
Osmium Holdings S.A. (RS) 891 0
Stillwater Mining Company 50,000 2,050,000*
TVX Gold Corp. 1,022,300 1,853,081*
Zimasco Consolidated Enterprises Ltd. (RS) 350,000 1,150,800
Zimbabwe Platinum Mines Ltd. 1,360,000 266,691*
------------
5,667,561
MINING FINANCE 7.68%
- ----------------------------------------------------------------------------------------
Euro-Nevada Mining Corp., Ltd. 280,000 4,569,191*
Euro-Nevada Mining Corp. Ltd., Warrants, Series B 35,000 725,359*
Franco-Nevada Mining Corp., Ltd. 160,000 3,065,274
8,359,824
67
<PAGE>
<CAPTION>
WORLD GOLD FUND
- ----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ----------------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
<S> <C> <C>
SENIOR GOLD PRODUCERS 25.36%
- ----------------------------------------------------------------------------------------
Ashanti Goldfields Co. Ltd., GDR 193,000 $ 1,809,375
Ashanti Preference Stock 203,932 285,505
Barrick Gold Corp. 266,400 5,194,800
Battle Mountain Gold Co. 813,550 3,355,894
Cambior, Inc. 682,400 3,340,731
Freeport-McMoRan Copper & Gold, Inc., Class B 164,200 1,713,837
Homestake Mining 354,100 3,253,294
Newmont Mining Corp. 185,300 3,346,981
Normandy Mining Ltd. 166,100 153,697
Placer Dome, Inc. 447,500 5,146,250
------------
27,600,364
- ----------------------------------------------------------------------------------------
TOTAL COMMON STOCKS AND WARRANTS 102,778,445
- ----------------------------------------------------------------------------------------
(cost $111,345,392)
RIGHTS 0.00%
GOLD EXPLORATION & DEVELOPMENT
- ----------------------------------------------------------------------------------------
Tanganyika Gold NL (cost $71,956) 62,499 2,298
<CAPTION>
PURCHASED OPTIONS 2.51% CONTRACTS
<S> <C> <C>
SENIOR GOLD PRODUCERS
- ----------------------------------------------------------------------------------------
Barrick Gold Corp., Strike Price 20, Call,
Expiration Jan. 2000 (premium $226,800) 600 247,500
Barrick Gold Corp., Strike Price 22.50, Call,
Expiration Jan. 2000 (premium $7,248) 16 5,200
Barrick Gold Corp., Strike Price 25, Call,
Expiration Jan. 1999 (premium $144,200) 1,400 8,750
Expiration Jan. 2000 (premium $1,126,412) 2,775 641,719
Barrick Gold Corp., Strike Price 30, Call,
Expiration Jan. 2000 (premium $19,695) 65 10,563
Homestake Mining, Strike Price 10, Call,
Expiration Date Jan. 2000 (premium $194,600) 700 192,500
Homestake Mining, Strike Price 12.50, Call,
Expiration Date Jan. 1999 (premium $93,975) 700 8,750
Expiration Date Jan. 2000 (premium $78,875) 250 37,500
Newmont Mining Corp., Strike Price 20, Call,
Expiration Date Jan. 2000 (premium $739,200) 1,400 612,500
Newmont Mining Corp., Strike Price 25, Call,
Expiration Date Jan. 2000 (premium $618,625) 1,000 306,250
Newmont Mining Corp., Strike Price 20, Call,
Expiration Date Mar. 1999 (premium $54,976) 200 40,000
Newmont Mining Corp., Strike Price 22.50, Call,
Expiration Date Mar. 1999 (premium $286,325) 650 93,437
</TABLE>
68
<PAGE>
<TABLE>
<CAPTION>
WORLD GOLD FUND
- ----------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ----------------------------------------------------------------------------------------
PURCHASED OPTIONS CONTRACTS VALUE
<S> <C> <C>
SENIOR GOLD PRODUCERS (CONT'D)
- ----------------------------------------------------------------------------------------
Placer Dome, Inc., Strike Price 12.50, Call, Expiration
Date Dec. 2000 (premium $442,650) 1,300 $ 316,875
Placer Dome, Inc., Strike Price 17.50, Call,
Expiration Date Jan. 2000 (premium $528,435) 1,520 209,000
- ----------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 2,730,544
- ----------------------------------------------------------------------------------------
(cost $4,562,016)
<CAPTION>
PRINCIPAL
CONVERTIBLE SECURITIES 0.70% AMOUNT
<S> <C> <C>
JUNIOR GOLD PRODUCERS
- ----------------------------------------------------------------------------------------
Dayton Mining Corp., 7.00% Convertible Subordinated
Note, due 4/1/02 (cost $1,068,040) $1,068,040 757,944
REPURCHASE AGREEMENT 0.80%
Joint Tri-Party Repurchase Agreement, Donaldson, Lufkin
& Jenrette, 12/31/98, 4.90%, due 1/4/99 repurchase
price $877,531, collateralized by U.S. Treasury
securities held in a joint tri-party repurchase
account (cost $877,053) 877,053 877,053
- ----------------------------------------------------------------------------------------
TOTAL INVESTMENTS 98.46% 107,146,284
- ----------------------------------------------------------------------------------------
(cost $117,924,457)
Other assets and liabilities, net 1.54% 1,676,430
------------
NET ASSETS 100% $108,822,714
------------
See notes to portfolios of investments.
</TABLE>
69
<PAGE>
<TABLE>
GOLD SHARES FUND
- ---------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ---------------------------------------------------------------------------------------
<CAPTION>
COMMON STOCKS 90.95% SHARES VALUE
<S> <C> <C>
GOLD MINING - AFRICA 11.55%
- ---------------------------------------------------------------------------------------
Anglogold Ltd., ADR 34,500 $ 674,906
Ashanti Goldfields, GDR 85,800 804,375
Gold Fields Ltd. 420,720 2,309,755
Randfontein Estates Ltd. 138,300 304,261*
Western Areas Gold Mining, ADR 63,000 201,600
Zimbabwe Platinum Mines Ltd. 344,791 67,612*
------------
4,362,509
GOLD MINING - AUSTRALIA 15.54%
- ---------------------------------------------------------------------------------------
Acacia Resources 1,362,195 2,015,929
Delta Gold NL 1,780,870 2,706,466
Lihir Gold Ltd. 300,000 336,427*
Normandy Mining Ltd. 249,203 230,595
Resolute Resources Ltd. 300,000 211,416
Sons Of Gwalia Ltd. 129,234 367,463
------------
5,868,296
GOLD MINING - NORTH AMERICA 63.86%
- ---------------------------------------------------------------------------------------
Barrick Gold Corp. 97,800 1,907,100
Battle Mountain Gold Co. 151,150 623,494
Cambior, Inc. 433,000 2,119,778
Dayton Mining Corp. 408,300 90,642
Euro-Nevada Mining Ltd. 20,000 326,371
Freeport-McMoRan Copper & Gold, Inc., Class B 42,500 443,594
Getchell Gold Corp. 180,000 4,905,000*
Greenstone Resources Ltd. 497,700 445,071*
Homestake Mining 75,850 696,872
IAMGOLD Intl. African Mining Gold 187,850 490,470*
Kinross Gold Corp. 267,650 616,713*
Meridian Gold, Inc. 1,300,000 7,637,076*
Newmont Mining Corp. 57,800 1,044,012
Placer Dome, Inc. 145,600 1,674,400
Stillwater Mining Co. 10,000 410,000*
TVX Gold Corp. 382,000 692,435*
------------
24,123,028
- ---------------------------------------------------------------------------------------
TOTAL COMMON STOCKS 34,353,833
- ---------------------------------------------------------------------------------------
(cost $32,209,644)
<CAPTION>
PURCHASED OPTIONS 3.80% CONTRACTS
<S> <C> <C>
GOLD MINING - NORTH AMERICA
- ---------------------------------------------------------------------------------------
Barrick Gold Corp., Strike Price 20, Call,
Expiration Jan. 2000 (premium $151,200) 400 165,000
70
<PAGE>
<CAPTION>
GOLD SHARES FUND
- ---------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1998
- ---------------------------------------------------------------------------------------
PURCHASED OPTIONS CONTRACTS VALUE
<S> <C> <C>
GOLD MINING - NORTH AMERICA (CONT'D)
- ---------------------------------------------------------------------------------------
Barrick Gold Corp., Strike Price 25, Call,
Expiration Jan. 1999 (premium $61,800) 600 $ 3,750
Expiration Jan. 2000 (premium $527,827) 1,305 301,781
Barrick Gold Corp., Strike Price 30, Call,
Expiration Jan. 2000 (premium $10,605) 35 5,688
Homestake Mining, Strike Price 10, Call,
Expiration Jan. 2000 (premium $83,400) 300 82,500
Homestake Mining, Strike Price 12.50, Call,
Expiration Jan. 1999 (premium $40,275) 300 3,750
Expiration Jan. 2000 (premium $31,550) 100 15,000
Newmont Mining Corp., Strike Price 20, Call,
Expiration Jan. 2000 (premium $316,800) 600 262,500
Expiration Mar. 1999 (premium $27,488) 100 20,000
Newmont Mining Corp., Strike Price 22.50, Call,
Expiration Mar. 1999 (premium $154,175) 350 50,312
Newmont Mining Corp., Strike Price 25, Call,
Expiration Jan. 2000 (premium $310,875) 500 153,125
Placer Dome, Inc., Strike Price 12.50, Call,
Expiration Jan. 2000 (premium $238,350) 700 170,625
Placer Dome Inc., Strike Price 17.50, Call,
Expiration Jan. 2000 (premium $568,065) 1,480 203,500
- ---------------------------------------------------------------------------------------
TOTAL PURCHASED OPTIONS 1,437,531
- ---------------------------------------------------------------------------------------
(cost $2,522,410)
<CAPTION>
PRINCIPAL
CONVERTIBLE SECURITIES 1.04% AMOUNT
<S> <C> <C>
GOLD MINING - NORTH AMERICA
- ---------------------------------------------------------------------------------------
Dayton Mining Corp., 7.00% Convertible Subordinated
Note, due 4/1/02 (cost $405,000) $ 405,000 391,500
REPURCHASE AGREEMENT 3.98%
Joint Tri-Party Repurchase Agreement, Donaldson,
Lufkin & Jenrette, 12/31/98, 4.90%, due 1/4/99,
repurchase price $1,502,490, collateralized by
U.S. Treasury securities held in a joint
tri-party repurchase account (cost $1,501,684) 1,501,684 1,501,684
- ---------------------------------------------------------------------------------------
TOTAL INVESTMENTS 99.77% 37,684,548
- ---------------------------------------------------------------------------------------
(cost $36,638,738)
Other assets and liabilities, net 0.23% 87,781
------------
NET ASSETS 100% $37,772,329
-----------
See notes to portfolios of investments.
</TABLE>
71
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIOS OF INVESTMENTS December 31, 1998
- --------------------------------------------------------------------------------
LEGEND
* Non-income producing security GO General Obligation Bond
+ Affiliated company (see following) RS Restricted Security (see following)
ADR American Depository Receipt ZCB Zero Coupon Bond
GDR Global Depository Receipt
GENERAL
The yields reflect the effective yield from the date of purchase.
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. Rates shown are current rates at 12/31/98.
Securities with a 144A designation are exempt from registration under Rule 144A
of the Securities Act of 1933.
JOINT TRI-PARTY REPURCHASE AGREEMENTS (SEE ALSO NOTE 1 TO FINANCIAL STATEMENTS.)
The terms of the repurchase agreements and the securities held as collateral in
the tri-party joint repurchase agreements at December 31, 1998 were:
Donaldson, Lufkin & Jenrette repurchase agreement, 4.90%, 12/31/98, due 1/4/99:
(with a market value of $60,706,597)
$67,857,000 U.S. Treasury Bond, 0.00%, 8/15/17
$54,902,000 U.S. Treasury Bond, 0.00%, 5/15/10
$20,516,000 U.S. Treasury Bond, 0.00%, 5/15/21
Total principal amount: $57,699,621; Total repurchase value: $57,713,324
PaineWebber, Inc. repurchase agreement, 4.90% 12/31/98, due 1/4/99:
(with a market value of $20,324,217)
$5,624,000 U.S. Treasury Bond, 6.75%, 5/31/99
$5,000,000 U.S. Treasury Bond, 13.375%, 8/15/01
$2,296,000 U.S. Treasury Bond, 6.50%, 11/15/26
$1,710,000 U.S. Treasury Bond, 8.75%, 8/15/20
Total principal amount: $20,000,000; Total repurchase value: $20,010,889
Other mutual funds managed by U.S. Global Investors, Inc. participate in the
tri-party joint repurchase agreements. Each owns an undivided interest in the
accounts.
72
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIOS OF INVESTMENTS December 31, 1998
- --------------------------------------------------------------------------------
AFFILIATED COMPANIES INDICATED IN PORTFOLIO OF INVESTMENTS AS "+"
The Investment Company Act of 1940 defines affiliates as companies in which the
Fund owns at least 5% of the outstanding voting securities. The following is a
summary of transactions with each affiliated company during the period ended
December 31, 1998.
<TABLE>
<CAPTION>
SHARES OF AFFILIATED COMPANIES
JUNE 30, 1998 ADDITIONS REDUCTIONS DECEMBER 31, 1998
<S> <C> <C> <C> <C>
GLOBAL RESOURCES
- -------------------------------------------------------------------------------------------------
Goldbeam Resources Ltd. 300,000 -- -- 300,000
</TABLE>
At December 31, 1998, the value of investments in affiliated companies was $0
representing 0% of net assets, and the total cost was $765,345. Net realized
gains on transactions with affiliates were $0 and there was no income earned for
the period.
<TABLE>
<CAPTION>
SHARES OF AFFILIATED COMPANIES
JUNE 30, 1998 ADDITIONS REDUCTIONS DECEMBER 31, 1998
<S> <C> <C> <C> <C>
WORLD GOLD
- -------------------------------------------------------------------------------------------------
AMT International Mining Corp. 2,126,350 -- -- 2,126,350
Ancash Resources (RS) 800,000 -- -- 800,000
Gold Corp. of Africa (RS) 200,000 -- -- 200,000
Opawica Exploration, Inc. 400,000 -- -- 400,000
Ormonde Mining plc 3,607,143 -- -- 3,607,143
Star Resources Corp. 1,976,400 -- -- 1,976,400
Western Exploration & Development
(RS) 600,000 -- -- 600,000
</TABLE>
At December 31, 1998, the value of investments in affiliated companies was
$1,427,549 representing 13.12% of net assets, and the total cost was $4,754,671.
Net realized gains on transactions were $0 and there was no income earned for
the period.
73
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIOS OF INVESTMENTS December 31, 1998
- --------------------------------------------------------------------------------
RESTRICTED SECURITIES INDICATED IN PORTFOLIO OF INVESTMENTS AS "RS"
The following securities are subject to legal restrictions on their resale. The
issuer bears the cost of registration, if any, involved in the disposition of
these securities.
<TABLE>
<CAPTION>
ACQUISITION COST PER
SECURITY DATE SHARE
<S> <C> <C>
GLOBAL RESOURCES
- -----------------------------------------------------------------------------------------
COMMON STOCK AND WARRANTS
Osmium Holdings S.A. 10/22/96-01/29/98 $987.07
Zimasco Consolidated Enterprises Ltd. 06/15/95 $2.50
</TABLE>
At December 31, 1998, the total cost of restricted securities was $202,655, and
the total value was $131,520, representing 0.90% of net assets.
<TABLE>
<CAPTION>
<S> <C> <C>
WORLD GOLD
- -----------------------------------------------------------------------------------------
COMMON STOCK AND WARRANTS
Chilean Gold Ltd. 01/17/97 $1.10
Fischer Watt Gold, Inc. 06/16/97-08/27/97 $0.33
Gold Corp. of Africa 08/14/96-11/14/97 $2.00
Miranda Mining 03/25/96 $1.13
Osmium Holdings S.A. 10/22/96-01/29/98 $1,280.75
Zimasco Consolidated Enterprises Ltd. 06/15/95 $2.50
SPECIAL WARRANTS AND UNITS
Ancash Resources 09/30/96-05/02/97 $0.55
Western Exploration & Development 08/14/97 $0.50
</TABLE>
At December 31, 1998, the total cost of restricted securities was $5,777,620,
and the total value was $2,462,827, representing 2.26% of net assets.
74
<PAGE>
(THIS PAGE INTENTIONALLY LEFT BLANK)
75
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
- ---------------------------------------------------------------------------------
<CAPTION>
U.S. TREASURY U.S. GOVERNMENT
SECURITIES SECURITIES
CASH FUND SAVINGS FUND
<S> <C> <C>
Investments, at identified cost $193,723,221 $808,489,819
============ ============
ASSETS
- ---------------------------------------------------------------------------------
Investments, at value:
Securities $130,479,542 $808,489,819
Repurchase agreement 63,243,679 --
Cash -- 1,374,456
Receivables:
Investments sold 63,117,354 139,089,000
Dividends -- --
Interest 1,285,792 5,787,140
Capital shares sold 21,338,649 1,294,790
From manager -- --
Other assets 248,698 93,701
- ---------------------------------------------------------------------------------
TOTAL ASSETS 279,713,714 956,128,906
- ---------------------------------------------------------------------------------
LIABILITIES
- ---------------------------------------------------------------------------------
Payables:
Investments purchased 83,146,846 137,743,580
Capital shares redeemed 1,290,765 3,861,954
To manager and affiliates 64,001 62,406
Dividends and distributions 659,868 3,536,271
Accounts payable and accrued expenses 83,153 23,291
- ---------------------------------------------------------------------------------
TOTAL LIABILITIES 85,244,633 145,227,502
- ---------------------------------------------------------------------------------
NET ASSETS $194,469,081 $810,901,404
============ ============
NET ASSETS CONSIST OF:
- ---------------------------------------------------------------------------------
Paid in capital $194,415,697 $811,031,798
Undistributed net investment income (loss) 39,815 1,624,504
Accumulated net realized gain (loss) on
investments and foreign currencies 13,569 (1,754,898)
Net unrealized appreciation (depreciation) of
investments and other assets and
liabilities denominated in foreign
currencies -- --
------------ ------------
Net assets applicable to capital shares
outstanding $194,469,081 $810,901,404
============ ============
Capital shares outstanding, and unlimited
number of no par shares authorized 194,472,360 811,010,038
============ ============
NET ASSET VALUE, PER SHARE $ 1.00 $ 1.00
============ ============
See accompanying notes to financial statements.
76
<PAGE>
<CAPTION>
- ----------------------------------------------------------------------------------------
December 31, 1998
- ----------------------------------------------------------------------------------------
NEAR-TERM TAX FREE INCOME ALL AMERICAN
TAX FREE FUND FUND FUND EQUITY FUND
<C> <C> <C> <C>
$7,391,799 $22,050,586 $ 8,769,967 $28,898,192
========== =========== =========== ===========
- ----------------------------------------------------------------------------------------
$6,638,305 $21,646,746 $10,299,762 $40,102,321
916,566 1,210,021 813,136 6,649,121
10,064 14,726 -- 17,913
926,546 1,175,018 801,704 6,982,444
-- -- 42,713 42,798
130,502 331,424 13,886 3,620
1,555 27,056 2,780 226,796
7,991 1,976 -- --
1,440 1,711 1,461 3,328
- ----------------------------------------------------------------------------------------
8,632,969 24,408,678 11,975,442 54,028,341
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
916,566 1,735,350 816,666 7,284,783
21,596 5,518 -- 135,506
-- -- 7,623 10,237
25,765 133,775 -- 4,572
13,895 12,457 4,790 16,865
- ----------------------------------------------------------------------------------------
977,822 1,887,100 829,079 7,451,963
- ----------------------------------------------------------------------------------------
$7,655,147 $22,521,578 $11,146,363 $46,576,378
========== =========== =========== ===========
- ----------------------------------------------------------------------------------------
$7,685,553 $21,679,536 $ 8,803,275 $28,653,357
8,957 15,617 57,563 71,893
(202,435) 20,244 (57,406) (2,122)
163,072 806,181 2,342,931 17,853,250
---------- ----------- ----------- -----------
$7,655,147 $22,521,578 $11,146,363 $46,576,378
========== =========== =========== ===========
715,445 1,832,181 784,172 1,135,353
========== =========== =========== ===========
$ 10.70 $ 12.29 $ 14.21 $ 41.02
========== =========== =========== ===========
</TABLE>
77
<PAGE>
<TABLE>
- ----------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
- ----------------------------------------------------------------------------------
<CAPTION>
REAL ESTATE CHINA REGION
FUND OPPORTUNITY FUND
<S> <C> <C>
Investments, at identified cost $9,517,397 $27,985,295
========== ===========
ASSETS
- ----------------------------------------------------------------------------------
Investments, at value:
Securities $7,257,209 $15,379,809
Repurchase agreement 1,323,141 295,037
Cash -- --
Receivables:
Investments sold 1,378,029 446,776
Dividends 55,097 13,044
Interest 720 78
Capital shares sold 354 22,032
From manager -- --
Other assets 2,791 17,090
- ----------------------------------------------------------------------------------
TOTAL ASSETS 10,017,341 16,173,866
- ----------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------
Payables:
Due to custodian -- 5,038
Investments purchased 1,323,141 295,960
Capital shares redeemed 61,253 128,303
To manager and affiliates 6,152 18,971
Dividends and distributions -- 121,787
Accounts payable and accrued expenses 21,239 --
- ----------------------------------------------------------------------------------
TOTAL LIABILITIES 1,411,785 570,059
- ----------------------------------------------------------------------------------
NET ASSETS $8,605,556 $15,603,807
========== ===========
NET ASSETS CONSIST OF:
- ----------------------------------------------------------------------------------
Paid in capital $9,838,316 $35,620,509
Undistributed net investment income (loss) 118,470 (121,312)
Accumulated net realized gain (loss) on
investments and foreign currencies (414,178) (7,584,970)
Net unrealized appreciation (depreciation) of
investments and other assets and
liabilities denominated in
foreign currencies (937,052) (12,310,420)
---------- -----------
Net assets applicable to capital shares
outstanding $8,605,556 $15,603,807
========== ===========
Capital shares outstanding, and unlimited
number of no par shares authorized 911,107 4,059,583
========== ===========
NET ASSET VALUE, PER SHARE $ 9.45 $ 3.84
========== ===========
See accompanying notes to financial statements.
78
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------
December 31, 1998
- --------------------------------------------------------------------------------
GLOBAL RESOURCES WORLD GOLD GOLD SHARES
FUND FUND FUND
<C> <C> <C>
$18,743,585 $117,924,457 $ 36,638,738
=========== ============ ============
- --------------------------------------------------------------------------------
$13,746,351 $106,269,231 $ 36,182,864
870,147 877,053 1,501,684
-- -- 17,437
930,411 15,132,465 13,271,279
14,720 373,335 11,502
474 54,587 28,146
-- 18,818 67,010
-- -- --
7,130 36,754 102,324
- --------------------------------------------------------------------------------
15,569,233 122,762,243 51,182,246
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
-- 130,309 --
870,147 2,772,515 3,228,012
46,968 10,703,565 10,114,667
13,581 19,040 26,877
-- 139,230 --
21,817 174,870 40,361
- --------------------------------------------------------------------------------
952,513 13,939,529 13,409,917
- --------------------------------------------------------------------------------
$14,616,720 $108,822,714 $ 37,772,329
=========== ============ ============
- --------------------------------------------------------------------------------
$26,258,937 $186,270,745 $243,258,432
(205,126) (216,813) (927,765)
(7,310,004) (66,450,352) (205,616,268)
(4,127,087) (10,780,866) 1,057,930
----------- ------------ ------------
$14,616,720 $108,822,714 $ 37,772,329
=========== ============ ============
4,249,462 11,602,494 9,897,879
=========== ============ ============
$ 3.44 $ 9.38 $ 3.82
=========== ============ ============
</TABLE>
79
<PAGE>
<TABLE>
- ---------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- ---------------------------------------------------------------------------------
<CAPTION>
U.S. TREASURY U.S. GOVERNMENT
SECURITIES SECURITIES
CASH FUND SAVINGS FUND
<S> <C> <C>
NET INVESTMENT INCOME
INCOME:
- ---------------------------------------------------------------------------------
Dividends $ -- $ --
Foreign taxes withheld on dividends -- --
---------- -----------
Net dividends -- --
Interest and other 4,605,218 21,303,478
---------- -----------
TOTAL INCOME 4,605,218 21,303,478
EXPENSES:
- ---------------------------------------------------------------------------------
Management fee 454,115 1,684,746
Transfer agent fees and expenses 213,044 434,736
Accounting service fees and expenses 23,461 48,691
Legal and professional fees 31,229 30,302
Custodian fees 75,974 52,525
Shareholder reporting 31,028 49,830
Registration fees 24,710 26,511
Trustee's fees and expenses 7,182 7,709
Interest Expense -- 573
Miscellaneous 49,958 60,048
---------- -----------
Total expenses before reductions 910,701 2,395,671
Short-term trading fee -- --
Expenses reimbursed -- (1,348,190)
---------- -----------
NET EXPENSES 910,701 1,047,481
- ---------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 3,694,517 20,255,997
- ---------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities -- 16,252
Foreign currency transactions -- --
---------- -----------
NET REALIZED GAIN (LOSS) -- 16,252
---------- -----------
Net change in unrealized appreciation
(depreciation) of:
Investments -- --
Other assets and liabilities
denominated in foreign currencies -- --
---------- -----------
NET UNREALIZED APPRECIATION
(DEPRECIATION) -- --
- ---------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS -- 16,252
- ---------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $3,694,517 $20,272,249
========== ===========
See accompanying notes to financial statements.
80
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------
For the Six Months Ended December 31, 1998
- --------------------------------------------------------------------------------
NEAR-TERM TAX FREE INCOME ALL AMERICAN
TAX FREE FUND FUND FUND EQUITY FUND
<C> <C> <C> <C>
- --------------------------------------------------------------------------------
$ -- $ -- $175,730 $ 216,801
-- -- -- (429)
-------- -------- -------- ----------
-- -- 175,730 216,372
187,080 602,580 42,115 158,419
-------- -------- -------- ----------
187,080 602,580 217,845 374,791
- --------------------------------------------------------------------------------
20,161 83,895 40,904 148,338
6,095 16,806 21,864 74,798
22,691 21,365 22,004 22,643
12,820 13,869 16,054 27,153
7,635 7,183 8,618 13,980
921 2,728 3,270 11,242
8,700 7,696 6,243 6,958
7,103 7,036 7,111 7,250
-- -- -- --
4,480 8,067 3,834 4,079
-------- -------- -------- ----------
90,606 168,645 129,902 316,441
-- -- -- --
(62,400) (90,421) -- (118,750)
-------- -------- -------- ----------
28,206 78,224 129,902 197,691
- --------------------------------------------------------------------------------
158,874 524,356 87,943 177,100
- --------------------------------------------------------------------------------
7,842 134,912 (39,892) 420,009
-- -- -- --
-------- -------- -------- ----------
7,842 134,912 (39,892) 420,009
-------- -------- -------- ----------
32,463 51,444 (43,514) 3,356,552
-- -- -- --
-------- -------- -------- ----------
32,463 51,444 (43,514) 3,356,552
- --------------------------------------------------------------------------------
40,305 186,356 (83,406) 3,776,561
- --------------------------------------------------------------------------------
$199,179 $710,712 $ 4,537 $3,953,661
======== ======== ======== ==========
</TABLE>
81
<PAGE>
<TABLE>
- ----------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------
<CAPTION>
REAL ESTATE CHINA REGION
FUND OPPORTUNITY FUND
<S> <C> <C>
NET INVESTMENT INCOME
INCOME:
- ----------------------------------------------------------------------------------
Dividends $ 215,286 $ 216,886
Foreign taxes withheld on dividends (3,204) --
----------- -----------
Net dividends 212,082 216,886
Interest and other 67,659 13,085
----------- -----------
TOTAL INCOME 279,741 229,971
EXPENSES:
- ----------------------------------------------------------------------------------
Management fee 37,032 99,998
Transfer agent fees and expenses 32,604 93,007
Accounting service fees and expenses 25,832 27,864
Legal and professional fees 16,702 56,294
Custodian fees 11,489 26,658
Shareholder reporting 6,121 20,731
Registration fees 6,624 5,790
Trustee's fees and expenses 7,117 7,084
Interest Expense -- --
Miscellaneous 7,195 11,578
----------- -----------
Total expenses before reductions 150,716 349,004
Short-term trading fee -- --
Expenses reimbursed -- --
----------- -----------
NET EXPENSES 150,716 349,004
- ----------------------------------------------------------------------------------
NET INVESTMENT INCOME (LOSS) 129,025 (119,033)
- ----------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities (415,738) (2,542,904)
Foreign currency transactions 1,900 (82)
----------- -----------
NET REALIZED GAIN (LOSS) (413,838) (2,542,986)
----------- -----------
Net change in unrealized appreciation
(depreciation) of:
Investments (737,553) 1,635,468
Other assets and liabilities
denominated in foreign currencies 120 (50)
----------- -----------
NET UNREALIZED APPRECIATION
(DEPRECIATION) (737,433) 1,635,418
- ----------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (1,151,271) (907,568)
- ----------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $(1,022,246) $(1,026,601)
=========== ===========
See accompanying notes to financial statements.
82
<PAGE>
<CAPTION>
- -------------------------------------------------------------------------------
For the Six Months Ended December 31, 1998
- -------------------------------------------------------------------------------
GLOBAL RESOURCES WORLD GOLD GOLD SHARES
FUND FUND FUND
<C> <C> <C>
- -------------------------------------------------------------------------------
$ 143,055 $ 894,363 $ 244,791
(3,555) (28,174) (10,640)
----------- ----------- ----------
139,500 866,189 234,151
62,036 474,972 229,092
----------- ----------- ----------
201,536 1,341,161 463,243
- -------------------------------------------------------------------------------
82,545 616,272 170,798
113,221 344,919 498,720
23,081 40,440 30,127
39,871 77,266 53,862
20,456 41,730 211,666
27,752 42,927 131,694
31,341 26,302 74,565
7,287 7,308 7,729
-- 22,560 45,944
10,743 53,249 34,685
----------- ----------- ----------
356,297 1,272,973 1,259,790
-- (22,560) 45,944
-- -- --
----------- ----------- ----------
356,297 1,250,413 1,213,846
- -------------------------------------------------------------------------------
(154,761) 90,748 (750,603)
- -------------------------------------------------------------------------------
(2,782,730) (16,086,103) (12,448,379)
(2,671) 294,258 48,424
----------- ----------- ----------
(2,785,401) (15,791,845) (12,399,955)
----------- ----------- ----------
(362,595) 12,578,176 15,872,388
1,112 (2,309) 46,877
----------- ----------- ----------
(361,483) 12,575,867 15,919,265
- -------------------------------------------------------------------------------
(3,146,884) (3,215,978) 3,519,310
- -------------------------------------------------------------------------------
$(3,301,645) $(3,125,230) $2,768,707
=========== =========== ==========
</TABLE>
83
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------
<CAPTION>
U.S. TREASURY SECURITIES
CASH FUND
--------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1998 JUNE 30, 1998
<S> <C> <C>
INCREASE (DECREASE)
IN NET ASSETS
FROM INVESTMENT OPERATIONS:
- -----------------------------------------------------------------------------------------
Net investment income (loss) $ 3,694,517 $ 8,226,289
Net realized gain (loss) -- 13,569
Net unrealized appreciation (depreciation) -- --
-------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS 3,694,517 8,239,858
DISTRIBUTIONS TO SHAREHOLDERS:
- -----------------------------------------------------------------------------------------
From net investment income (3,701,389) (8,231,765)
In excess of net investment income -- --
From net capital gains -- --
In excess of net capital gains -- --
-------------- ---------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (3,701,389) (8,231,765)
FROM CAPITAL SHARE TRANSACTIONS:
- -----------------------------------------------------------------------------------------
Proceeds from shares sold 1,427,905,204 3,497,365,077
Distributions reinvested 2,969,063 8,105,535
Paid-in capital portion of short-term trading
fee -- --
-------------- ---------------
1,430,874,267 3,505,470,612
Cost of shares redeemed (1,385,819,700) (3,587,939,550)
-------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 45,054,567 (82,468,938)
- -----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 45,047,695 (82,460,845)
- -----------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 149,421,386 231,882,231
- -----------------------------------------------------------------------------------------
END OF PERIOD $ 194,469,081 $149,421,386
- -----------------------------------------------------------------------------------------
Undistributed net investment income, end of period $ 39,815 $ 46,687
============== ===============
CAPITAL SHARE ACTIVITY
- -----------------------------------------------------------------------------------------
Shares sold 1,427,905,205 3,497,366,478
Shares reinvested 2,969,063 8,105,535
Shares redeemed (1,385,818,488) (3,587,939,550)
-------------- ---------------
NET SHARE ACTIVITY 45,055,780 (82,467,537)
============== ===============
See accompanying notes to financial statements.
84
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES
SAVINGS FUND Near-Term Tax Free Fund
------------------------------------- -------------------------------------
SIX MONTHS ENDED Year Ended Six Months Ended Year Ended
DECEMBER 31, 1998 June 30, 1998 December 31, 1998 June 30, 1998
<C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
$ 20,255,997 $ 38,271,461 $ 158,874 $ 320,155
16,252 2,317 7,842 19,843
-- -- 32,463 111,972
------------ ------------ ---------- ----------
20,272,249 38,273,778 199,179 451,970
- --------------------------------------------------------------------------------------------------------
(20,283,160) (38,322,248) (155,691) (347,902)
-- -- -- --
-- -- -- --
-- -- -- --
------------ ------------ ---------- ----------
(20,283,160) (38,322,248) (155,691) (347,902)
- --------------------------------------------------------------------------------------------------------
414,867,979 714,492,554 610,638 3,145,125
16,692,370 37,764,547 117,783 284,226
-- -- -- --
------------ ------------ ---------- ----------
431,560,349 752,257,101 728,421 3,429,351
(382,165,612) (682,460,358) (1,178,221) (2,831,915)
------------ ------------ ---------- ----------
49,394,737 69,796,743 (449,800) 597,436
- --------------------------------------------------------------------------------------------------------
49,383,826 69,748,273 (406,312) 701,504
- --------------------------------------------------------------------------------------------------------
761,517,578 691,769,305 8,061,459 7,359,955
- --------------------------------------------------------------------------------------------------------
$810,901,404 $761,517,578 $7,655,147 $8,061,459
- --------------------------------------------------------------------------------------------------------
$ 1,624,504 $ 1,650,857 $ 8,957 $ 5,774
============ ============ ========== ==========
- --------------------------------------------------------------------------------------------------------
414,867,612 714,490,615 57,027 295,052
16,692,373 37,764,547 10,994 26,711
(382,165,611) (682,460,358) (109,992) (265,953)
------------ ------------ ---------- ----------
49,394,374 69,794,804 (41,971) 55,810
============ ============ ========== ==========
</TABLE>
85
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------
<CAPTION>
TAX FREE FUND
-------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1998 JUNE 30, 1998
<S> <C> <C>
INCREASE (DECREASE)
IN NET ASSETS
FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------
Net investment income (loss) $ 524,356 $ 964,182
Net realized gain (loss) 134,912 117,574
Net unrealized appreciation (depreciation) 51,444 407,090
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS 710,712 1,488,846
DISTRIBUTIONS TO SHAREHOLDERS:
- ------------------------------------------------------------------------------------------
From net investment income (512,834) (997,172)
In excess of net investment income -- --
From net capital gains (47,637) --
In excess of net capital gains -- --
----------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (560,471) (997,172)
FROM CAPITAL SHARE TRANSACTIONS:
- ------------------------------------------------------------------------------------------
Proceeds from shares sold 4,706,884 9,840,352
Distributions reinvested 332,366 784,777
Paid-in capital portion of short-term trading
fee -- --
----------- -----------
5,039,250 10,625,129
Cost of shares redeemed (4,067,556) (8,044,567)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 971,694 2,580,562
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS 1,121,935 3,072,236
- ------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 21,399,643 18,327,407
- ------------------------------------------------------------------------------------------
END OF PERIOD $22,521,578 $21,399,643
- ------------------------------------------------------------------------------------------
Undistributed net investment income, end of period $ 15,617 $ 4,095
=========== ===========
CAPITAL SHARE ACTIVITY
- ------------------------------------------------------------------------------------------
Shares sold 381,446 808,610
Shares reinvested 26,964 64,542
Shares redeemed (329,860) (661,154)
----------- -----------
NET SHARE ACTIVITY 78,550 211,998
=========== ===========
See accompanying notes to financial statements.
86
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
INCOME FUND ALL AMERICAN EQUITY FUND
------------------------------------- -------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1998 JUNE 30, 1998 DECEMBER 31, 1998 JUNE 30, 1998
<C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
$ 87,943 $ 159,539 $ 177,100 $ 295,491
(39,892) 775,019 420,009 1,150,496
(43,514) 1,282,975 3,356,552 5,567,709
----------- ----------- ----------- -----------
4,537 2,217,533 3,953,661 7,013,696
- --------------------------------------------------------------------------------------------------------
(28,144) (182,284) (88,996) (294,531)
-- -- -- (21,819)
(738,350) (1,415,785) (1,212,357) (507,110)
-- -- -- --
----------- ----------- ----------- -----------
(766,494) (1,598,069) (1,301,353) (823,460)
- --------------------------------------------------------------------------------------------------------
1,593,979 5,132,257 19,246,476 26,967,395
1,061,616 1,417,432 1,266,586 770,612
504 3,516 -- 12,410
----------- ----------- ----------- -----------
2,656,099 6,553,205 20,513,062 27,750,417
(1,884,600) (5,650,697) (11,259,966) (24,748,051)
----------- ----------- ----------- -----------
771,499 902,508 9,253,096 3,002,366
- --------------------------------------------------------------------------------------------------------
9,542 1,521,972 11,905,404 9,192,602
- --------------------------------------------------------------------------------------------------------
11,136,821 9,614,849 34,670,974 25,478,372
- --------------------------------------------------------------------------------------------------------
$11,146,363 $11,136,821 $46,576,378 $34,670,974
- --------------------------------------------------------------------------------------------------------
$ 57,563 $ (2,236) $ 71,893 $ (16,211)
=========== =========== =========== ===========
- --------------------------------------------------------------------------------------------------------
107,425 337,095 508,061 781,985
76,778 104,459 32,592 22,147
(126,897) (378,119) (298,873) (723,425)
----------- ----------- ----------- -----------
57,306 63,435 241,780 80,707
=========== =========== =========== ===========
</TABLE>
87
<PAGE>
<TABLE>
- ------------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------------------
<CAPTION>
REAL ESTATE FUND
-------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1998 JUNE 30, 1998
<S> <C> <C>
INCREASE (DECREASE)
IN NET ASSETS
FROM INVESTMENT OPERATIONS:
- ------------------------------------------------------------------------------------------
Net investment income (loss) $ 129,025 $ 296,173
Net realized gain (loss) (413,838) 2,410,511
Net unrealized appreciation (depreciation) (737,433) (2,358,454)
---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS (1,022,246) 348,230
DISTRIBUTIONS TO SHAREHOLDERS:
- ------------------------------------------------------------------------------------------
From net investment income -- (407,325)
In excess of net investment income -- --
From net capital gains (2,074,983) (368,775)
In excess of net capital gains -- --
---------- -----------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (2,074,983) (776,100)
FROM CAPITAL SHARE TRANSACTIONS:
- ------------------------------------------------------------------------------------------
Proceeds from shares sold 969,400 10,993,821
Distributions reinvested 2,019,625 739,094
Paid-in capital portion of short-term trading
fee 500 127
---------- -----------
2,989,525 11,733,042
Cost of shares redeemed (2,655,035) (13,833,733)
---------- -----------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS 334,490 (2,100,691)
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (2,762,739) (2,528,561)
- ------------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 11,368,295 13,896,856
- ------------------------------------------------------------------------------------------
END OF PERIOD $8,605,556 $11,368,295
- ------------------------------------------------------------------------------------------
Undistributed net investment income, end of period $ 118,470 $ (10,555)
========== ===========
CAPITAL SHARE ACTIVITY
- ------------------------------------------------------------------------------------------
Shares sold 80,911 709,555
Shares reinvested 218,102 49,283
Shares redeemed (218,933) (904,995)
---------- -----------
NET SHARE ACTIVITY 80,080 (146,157)
========== ===========
See accompanying notes to financial statements.
88
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------
CHINA REGION
OPPORTUNITY FUND GLOBAL RESOURCES FUND
------------------------------------- -------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1998 JUNE 30, 1998 DECEMBER 31, 1998 JUNE 30, 1998
<C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
$ (119,033) $ 122,601 $ (154,761) $ (447,823)
(2,542,986) (357,192) (2,785,401) (433,737)
1,635,418 (19,946,443) (361,483) (8,934,964)
----------- ----------- ----------- -----------
(1,026,601) (20,181,034) (3,301,645) (9,816,524)
- --------------------------------------------------------------------------------------------------------
(121,787) (207,619) -- --
-- -- -- --
-- -- (944,679) (160,639)
-- -- -- (3,620,754)
----------- ----------- ----------- -----------
(121,787) (207,619) (944,679) (3,781,393)
- --------------------------------------------------------------------------------------------------------
7,318,520 36,040,287 3,523,707 29,416,915
-- 198,979 -- 3,469,677
74,963 263,326 3,971 22,484
----------- ----------- ----------- -----------
7,393,483 36,502,592 3,527,678 32,909,076
(10,101,133) (38,753,107) (3,622,576) (30,336,586)
----------- ----------- ----------- -----------
(2,707,650) (2,250,515) (94,898) 2,572,490
- --------------------------------------------------------------------------------------------------------
(3,856,038) (22,639,168) (4,341,222) (11,025,427)
- --------------------------------------------------------------------------------------------------------
19,459,845 42,099,013 18,957,942 29,983,369
- --------------------------------------------------------------------------------------------------------
$15,603,807 $19,459,845 $14,616,720 $18,957,942
- --------------------------------------------------------------------------------------------------------
$ (121,312) $ 119,508 $ (205,126) $ (50,365)
=========== =========== =========== ===========
- --------------------------------------------------------------------------------------------------------
2,038,445 5,562,694 945,527 3,859,064
-- 34,307 -- 580,214
(2,732,609) (5,740,651) (937,196) (4,286,561)
----------- ----------- ----------- -----------
(694,164) (143,650) 8,331 152,717
=========== =========== =========== ===========
</TABLE>
89
<PAGE>
<TABLE>
- -----------------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------
<CAPTION>
WORLD GOLD FUND
-------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1998 JUNE 30, 1998
<S> <C> <C>
INCREASE (DECREASE)
IN NET ASSETS
FROM INVESTMENT OPERATIONS:
- -----------------------------------------------------------------------------------------
Net investment income (loss) $ 90,748 $ (1,126,252)
Net realized gain (loss) (15,791,845) (5,618,417)
Net unrealized appreciation (depreciation) 12,575,867 (60,561,663)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS (3,125,230) (67,306,332)
DISTRIBUTIONS TO SHAREHOLDERS:
- -----------------------------------------------------------------------------------------
From net investment income (139,230) --
In excess of net investment income -- (1,637,556)
From net capital gains -- --
In excess of net capital gains -- --
------------ ------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS (139,230) (1,637,556)
FROM CAPITAL SHARE TRANSACTIONS:
- -----------------------------------------------------------------------------------------
Proceeds from shares sold 744,516,528 735,521,254
Distributions reinvested -- 1,481,375
Paid-in capital portion of short-term trading
fee 1,803,338 1,423,972
------------ ------------
746,319,866 738,426,601
Cost of shares redeemed (783,992,006) (707,189,284)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS (37,672,140) 31,237,317
- -----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS (40,936,600) (37,706,571)
- -----------------------------------------------------------------------------------------
NET ASSETS
Beginning of period 149,759,314 187,465,885
- -----------------------------------------------------------------------------------------
END OF PERIOD $108,822,714 $149,759,314
- -----------------------------------------------------------------------------------------
Undistributed net investment income, end of period $ (216,813) $ (168,311)
============ ============
CAPITAL SHARE ACTIVITY
- -----------------------------------------------------------------------------------------
Shares sold 79,236,160 61,013,502
Shares reinvested -- 132,859
Shares redeemed (82,817,811) (57,712,475)
------------ ------------
NET SHARE ACTIVITY (3,581,651) 3,433,886
============ ============
See accompanying notes to financial statements.
90
<PAGE>
<CAPTION>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GOLD SHARES FUND
---------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1998 JUNE 30, 1998
<C> <C>
- --------------------------------------------
$ (750,603) $ 442,921
(12,399,955) (51,900,714)
15,919,265 18,623,002
------------- ---------------
2,768,707 (32,834,791)
- --------------------------------------------
-- (1,269,718)
-- (131,682)
-- --
-- --
------------- ---------------
-- (1,401,400)
- --------------------------------------------
482,061,153 2,855,272,222
-- 1,265,832
1,132,634 6,755,275
------------- ---------------
483,193,787 2,863,293,329
(494,440,714) (2,862,329,383)
------------- ---------------
(11,246,927) 963,946
- --------------------------------------------
(8,478,220) (33,272,245)
- --------------------------------------------
46,250,549 79,522,794
- --------------------------------------------
$ 37,772,329 $ 46,250,549
- --------------------------------------------
$ (927,765) $ (177,162)
============= ===============
- --------------------------------------------
125,038,048 441,295,800
-- 222,076
(127,356,562) (437,784,893)
------------- ---------------
(2,318,514) 3,732,983
============= ===============
</TABLE>
91
<PAGE>
- ---------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1998
- ---------------------------------------------------------------------------
NOTE 1: SIGNIFICANT ACCOUNTING POLICIES
U.S. Global Investors Funds (Trust) is organized as a Massachusetts business
trust, consisting of eleven separate funds (Funds), as follows: U.S. Treasury
Securities Cash, U.S. Government Securities Savings, Near-Term Tax Free, Tax
Free, Income, All American Equity, Real Estate, China Region Opportunity,
Global Resources, World Gold and Gold Shares. Prior to July 1, 1998, Near-Term
Tax Free, Tax Free, Income, All American Equity, Real Estate, Global Resources,
World Gold and Gold Shares were known as United Services Near-Term Tax Free,
U.S. Tax Free, U.S. Income, U.S. All American Equity, U.S. Real Estate, U.S.
Global Resources, U.S. World Gold and U.S. Gold Shares, respectively. The Trust
is a diversified, open-end management investment company registered under the
Investment Company Act of 1940, as amended.
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
The Funds value investments traded on national or international securities
exchanges or over-the-counter at the last sales price reported by the
security's primary exchange at the time of daily valuation. Securities for
which no sale was reported are valued at the mean between the last reported bid
and asked prices or using quotes provided by principal market makers.
Short-term investments with effective maturities of sixty days or less at the
date of purchase and investments of U.S. Treasury Securities Cash and U.S.
Government Securities Savings Funds are valued at amortized cost, which
approximates market value. An independent pricing service values municipal
securities and long-term U.S. Government obligations using a system based on
such factors as credit rating, maturity, coupon and type of security to
determine fair value.
B. FAIR VALUED SECURITIES
Securities for which market quotations are not readily available or which are
subject to legal restrictions are valued at their fair value as determined in
good faith under consistently applied procedures under the general supervision
of the Board of Trustees. The following factors are considered in determining
fair value: nature and duration of restrictions, trading volume, market values
of unrestricted shares of the same or similar class, investment management's
judgment regarding the market experience of the issuer, financial status and
other operational and market factors affecting the issuer, issuer's management,
quality of the underlying property based on review of independent geological
studies, the extent of the fund's investment in the trading securities of the
issuer; and other relevant matters. The fair values may differ from what would
have been used had a broader market for these securities existed.
92
<PAGE>
- ----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1998
- ----------------------------------------------------------------------------
C. SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are accounted for on trade date. Realized gains and
losses from security transactions are determined on an identified-cost basis.
Dividend income is recorded on the ex-dividend date or, for certain foreign
securities, when the information becomes available to the Funds. Interest
income, which may include original issue discount, is recorded on an accrual
basis. Discounts and premiums on securities purchased are accreted and
amortized, respectively, on the same basis as used for federal tax reporting.
The Funds may purchase securities on a when-issued or delayed-delivery basis
and segregate on their books liquid assets to collateralize the obligation
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, as
collateral underlying securities with a value exceeding the total repurchase
price, including accrued interest. The Funds use joint tri-party repurchase
agreements with other Funds under common management where uninvested cash is
collectively invested in repurchase agreements, and each participating Fund
owns an undivided interest in the account.
E. OPTIONS
Some Funds may write or purchase options on securities to manage their exposure
to stock or commodity markets as well as fluctuations in interest and currency
conversion rates. Written options include a risk of loss in excess of the
option premium. The use of option carries the risk of a change in value of the
underlying instruments, an illiquid secondary market, or that the counterparty
fails to perform its obligations. 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.
<TABLE>
<CAPTION>
GLOBAL RESOURCES FUND WORLD GOLD FUND GOLD SHARES FUND
---------------------------------------------------------------------------------
NUMBER OF PREMIUMS NUMBER OF PREMIUMS NUMBER OF PREMIUMS
CONTRACTS PAID/RECEIVED CONTRACTS PAID/RECEIVED CONTRACTS PAID/RECEIVED
<S> <C> <C> <C> <C> <C> <C>
Options outstanding at
July 1, 1998 -- $ -- 900 $ 386,450 1,200 $ 834,550
Options written 20 2,440 393 37,790 95 7,758
Options purchased 300 30,075 21,326 6,432,733 10,820 3,709,028
Options terminated
in closing purchase
transactions -- -- (293) (23,715) (95) (7,758)
Options sold (300) (30,075) (7,650) (2,077,167) (4,250) (1,944,168)
Options expired -- -- (2,100) (194,075) (1,000) (77,000)
---- -------- ------ ----------- ------ -----------
Options outstanding at
December 31, 1998 20 $ 2,440 12,576 $ 4,562,016 6,770 $ 2,522,410
==== ======== ====== =========== ====== ===========
</TABLE>
93
<PAGE>
- ----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1998
- ----------------------------------------------------------------------------
F. FOREIGN CURRENCY TRANSACTIONS
Some Funds may invest in securities of foreign issuers. The accounting records
of these Funds are maintained in U.S. dollars. At each net asset value
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 to U.S. dollars 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
substantially all of their taxable income to shareholders. Accordingly, no
provision for federal income taxes is required.
H. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
The Funds record dividends and distributions to shareholders 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.
The Funds make distributions at least annually. The U.S. Treasury Securities
Cash and U.S. Government Securities Savings Funds accrue dividends, including
short-term gains or losses, on a daily basis with payment monthly. Tax Free and
Near-Term Tax Free pay monthly dividends. All American Equity and Income pay
quarterly dividends. Dividends and distributions payable at period end were
processed for reinvestment on the following business day.
I. EXPENSES
Each fund bears expenses incurred specifically on its behalf plus an allocation
of its share of Trust level expenses. Short-term trading fees collected from
temporary investors in the Funds are applied as a reduction of expenses to the
extent of such related costs; any excess is credited as paid-in capital.
Expense offset arrangements have been made with the Funds' custodian so the
custodian fees are paid indirectly by credits earned on the Funds' cash
balances. Such deposit arrangements are an alternative to overnight
investments.
J. 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
94
<PAGE>
- ----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1998
- ----------------------------------------------------------------------------
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 income and expenses during the reporting period. Actual
results could differ from those estimates.
NOTE 2: RELATED PARTY TRANSACTIONS
U.S. Global Investors, Inc. (Manager), under an investment advisory agreement
with the Trust in effect through February 29, 2000, furnishes management and
investment advisory services and, subject to the supervision of the Trustees,
directs the investments of each Fund according to its investment objectives,
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 the 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:
<TABLE>
<CAPTION>
ANNUAL PERCENTAGE
FUND AVERAGE DAILY NET ASSETS
-------------------------------------------------------------------------
<S> <C>
Gold Shares, All American Equity, .75% of the first $250,000,000
Income, Tax Free and Real Estate and .50% of the excess
U.S. Treasury Securities Cash and
U.S. Government Securities .50% of the first $250,000,000,
Savings and .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 .50%
China Region Opportunity 1.25%
</TABLE>
The Manager has voluntarily agreed to reimburse specific Funds so that their
total operating expenses will not exceed certain annual percentages of average
net assets. The expenses for the six months ended December 31, 1998, were
voluntarily limited as follows: All American Equity at 1.00%, Tax Free and
Near-Term Tax Free at .70% and U.S. Government Securities Savings at .40%.
United Shareholder Services, Inc. (USSI), a wholly-owned subsidiary of the
Manager, is transfer 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. Effective, November 1, 1997, the Funds
changed to Brown
95
<PAGE>
- ----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1998
- ----------------------------------------------------------------------------
Brothers Harriman & Co. as the new custodian, fund accounting and
administration service agent with a fee structure based on average net assets.
Additionally, the Manager is reimbursed at cost for in-house legal services
pertaining to each fund.
During the six months ended December 31, 1998, A & B Mailers, Inc., a wholly-
owned subsidiary of the Manager, was paid $275,092 for mailing services
provided to the Funds.
The six independent Trustees receive $16,000 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. Trustees are also reimbursed for out-of-pocket expenses incurred while
attending meetings.
NOTE 3: INVESTMENT ACTIVITY
Purchases and sales of long-term securities for the six months ended December
31, 1998 are summarized as follows:
<TABLE>
<CAPTION>
FUND PURCHASES SALES
-----------------------------------------------------------------------------
<S> <C> <C>
Near-Term Tax Free $ 992,750 $ 1,798,979
Tax Free 6,458,674 5,803,747
Income 2,283,031 2,760,041
All American Equity 10,909,748 4,551,213
Real Estate 1,972,579 3,200,352
China Region Opportunity 413,335 1,369,023
Global Resources 5,910,669 5,019,644
World Gold 145,553,070 150,620,165
Gold Shares 88,365,754 92,557,233
</TABLE>
U.S. Treasury Securities Cash and U.S. Government Securities Savings held only
short-term investments. The Funds neither purchased nor sold long-term U.S.
government securities during the year.
Investments in foreign issuers as a percent of total investments at December
31, 1998 were: 10% of Real Estate, 98% of China Region Opportunity, 32% of
Global Resources, 70% of World Gold and 71% of Gold Shares.
96
<PAGE>
- ----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1998
- ----------------------------------------------------------------------------
The following table presents the income tax basis of the securities owned at
December 31, 1998 and the tax basis components of net unrealized appreciation
or depreciation:
<TABLE>
<CAPTION>
GROSS GROSS NET UNREALIZED
AGGREGATE UNREALIZED UNREALIZED APPRECIATION
FUND COST APPRECIATION DEPRECIATION (DEPRECIATION)
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
U.S. Treasury Securities Cash $193,723,211 $ -- $ -- $ --
U.S. Government Securities
Savings 808,489,819 -- -- --
Near-Term Tax Free 7,391,799 164,704 (1,632) 163,072
Tax Free 22,050,586 840,364 (34,183) 806,181
Income 8,779,329 2,736,544 (393,613) 2,342,931
All American Equity 28,898,192 18,410,212 (556,962) 17,853,250
Real Estate 9,517,397 121,280 (1,058,403) (937,047)
China Region Opportunity 27,985,295 1,307,609 (13,618,058) (12,310,449)
Global Resources 18,746,026 354,473 (4,481,561) (4,127,088)
World Gold 117,924,458 22,701,550 (33,479,723) (10,778,173)
Gold Shares 36,638,738 1,448,827 (403,017) 1,045,810
</TABLE>
Net realized capital loss carryforwards, for federal income tax purposes, may
be used to offset current or future capital gains until expiration. The loss
carryforwards and related expiration dates for each fund, as of June 30, 1998,
are as follows:
<TABLE>
<CAPTION>
LOSS EXPIRATION
FUND CARRYFORWARDS DATE
-------------------------------------------------------------------------------
<S> <C> <C>
U.S. Government Securities Savings $ 1,770,341 1999-2005
Near-Term Tax Free 210,277 2003-2004
Tax Free 67,031 2003-2005
China Region Opportunity 4,414,198 2004-2005
World Gold 38,427,707 1999-2001
Gold Shares 150,363,949 1999-2006
</TABLE>
Gold Shares and Global Resources had post-October 31, 1997 capital losses of
$41,112,377 and $4,520,984 and currency loss deferral of $244,552 and $50,365,
respectively which, in accordance with tax rules, are deemed to have occurred
on July 1, 1998.
NOTE 4: RISKS OF CONCENTRATIONS
China Region Opportunity may be exposed to risks not typically associated with
investments in the United States, due to investments in foreign issuers in the
region. These investments present risks resulting from disruptive political or
economic conditions and the possible imposition of adverse governmental laws or
currency exchange restrictions affecting the area.
97
<PAGE>
- ----------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1998
- ----------------------------------------------------------------------------
NOTE 5: CAPITAL STOCK
On May 22, 1998, the Trustees declared a 1-for-10 reverse stock split with an
effective date of July 1, 1998 for the shareholders of the Gold Shares Fund.
All capital share activity and per share data for the Gold Shares Fund have
been restated to reflect the reverse stock split.
NOTE 6: REVOLVING DEMAND NOTES
On November 6, 1997 each of the Funds entered into revolving demand notes with
Brown Brothers Harriman & Co. as denoted below subject to the borrowing limits
as set forth in the Funds' registration statement. These notes are
collateralized by any or all of the securities held by Brown Brothers Harriman
& Co. as the Funds' custodian. Borrowing under these notes will be charged
interest at the current overnight Federal Funds Rate plus 1.75%. There were no
borrowings under the revolving demand notes at December 31, 1998.
<TABLE>
<CAPTION>
AMOUNT AVAILABLE UNDER
FUND REVOLVING DEMAND NOTE
-----------------------------------------------------------------------------
<S> <C>
U.S. Treasury Securities Cash $ 30,000,000
U.S. Government Securities Savings 30,000,000
Near-Term Tax Free 5,000,000
Tax Free 5,000,000
Income 5,000,000
All American Equity 5,000,000
Real Estate 5,000,000
China Region Opportunity 5,000,000
Global Resources 5,000,000
World Gold 15,000,000
Gold Shares 100,000,000
</TABLE>
NOTE 7: SHARES OF BENEFICIAL INTEREST
At December 31, 1998, individual shareholders holding more than 5% of
outstanding shares comprised 20.65% of the Near-Term Tax Free Fund.
98
<PAGE>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
U.S. TREASURY SECURITIES CASH FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998 1997 1996 1995 1994
<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 .04 .04 .02
Net realized and unrealized gain
(loss) -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from investment activities .02 .04 .04 .04 .04 .02
-------- -------- -------- -------- -------- --------
Distributions
From net investment income (.02) (.04) (.04) (.04) (.04) (.02)
From net realized gains -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions (.02) (.04) (.04) (.04) (.04) (.02)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 2.11% 4.55% 4.35% 4.54% 4.43% 2.38%
Ratios to Average Net Assets (b):
Net investment income 4.17% 4.37% 4.22% 4.42% 4.32% 2.38%
Total expenses 1.03% .96% 1.04% 1.03% .97% .96%
Expenses reimbursed or offset -- -- -- -- -- (.03)%
Net expenses 1.03% .96% 1.04% 1.03% .97% .93%
Net assets, end of period (in
thousands) $194,469 $149,421 $231,882 $188,844 $190,373 $164,708
<FN>
(a) Total returns for periods less than one year are not annualized.
(b) 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>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES SAVINGS FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998 1997 1996 1995 1994
<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 .05 .05 .03
Net realized and unrealized gain
(loss) -- -- -- -- (.01) --
-------- -------- -------- -------- -------- --------
Total from investment activities .03 .05 .05 .05 .04 .03
-------- -------- -------- -------- -------- --------
Distributions
From net investment income (.03) (.05) (.05) (.05) (.05) (.03)
From net realized gains -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions (.03) (.05) (.05) (.05) (.05) (.03)
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 (a) 2.59% 5.38% 5.27% 5.34% 5.09%(c) 3.34%
Ratios to Average Net Assets (b):
Net investment income 5.11% 5.25% 5.13% 5.28% 5.03% 3.34%
Total expenses .60% .67% .70% .71% .68% .71%
Expenses reimbursed or offset (.34)% (.36)% (.41)% (.45)% (.45)% (.55)%
Net expenses .26% .31% .29% .26% .23% .16%
Net assets, end of period (in
thousands) $810,901 $761,518 $691,769 $588,409 $529,372 $610,229
<FN>
(a) Total returns for periods less than one year are not annualized.
(b) 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. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
(c) Total return includes the effect of a voluntary capital contribution by
the Manager; otherwise the return would have been 4.19%.
</FN>
</TABLE>
100
<PAGE>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
NEAR-TERM TAX FREE FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.64 $10.49 $10.38 $10.47 $10.39 $10.74
- -----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .22 .43 .48 .47 .45 .43
Net realized and unrealized gain (loss) .05 .19 .12 (.09) .06 (.21)
------ ------ ------ ------ ------ ------
Total from investment activities .27 .62 .60 .38 .51 .22
------ ------ ------ ------ ------ ------
Distributions
From net investment income (.21) (.47) (.49) (.47) (.43) (.44)
In excess of net investment income -- -- -- -- -- (.07)
From net realized gains -- -- -- -- -- --
In excess of net realized gains -- -- -- -- -- (.06)
------ ------ ------ ------ ------ ------
Total distributions (.21) (.47) (.49) (.47) (.43) (.57)
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.70 $10.64 $10.49 $10.38 $10.47 $10.39
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 2.58% 6.02% 5.85% 3.68% 5.02% 2.03%
Ratios to Average Net Assets (b):
Net investment income 4.04% 4.12% 4.67% 4.41% 4.25% 4.34%
Total expenses 2.29% 1.83% 1.92% 1.75% 1.62% 1.80%
Expenses reimbursed or offset (1.59)% (1.13)% (1.52)% (1.23)% (1.42)% (1.80)%
Net expenses .70% .70% .40% .52% .20% --
Portfolio turnover rate 27% 39% 103% 83% 53% 69%
Net assets, end of period (in thousands) $7,655 $8,061 $7,360 $6,545 $7,128 $9,190
<FN>
(a) Total returns for periods less than one year are not annualized.
(b) 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. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
</FN>
</TABLE>
101
<PAGE>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
TAX FREE FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $12.20 $11.89 $11.58 $11.55 $11.40 $12.16
- ----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .30 .57 .59 .59 .64 .67
Net realized and unrealized gain (loss) .11 .33 .31 .01 .18 (56)
------- ------- ------- ------- ------- -------
Total from investment activities .41 .90 .90 .60 .82 .11
------- ------- ------- ------- ------- -------
Distributions
From net investment income (.29) (.59) (.59) (.57) (.64) (.68)
In excess of net investment income -- -- -- -- (.03) (.06)
From net realized gains (.03) -- -- -- -- (.06)
In excess of net realized gains -- -- -- -- -- (.07)
------- ------- ------- ------- ------- -------
Total distributions (.32) (.59) (.59) (.57) (.67) (.87)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.29 $12.20 $11.89 $11.58 $11.55 $11.40
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 3.34% 7.71% 7.93% 5.25% 7.51% .75%
Ratios to Average Net Assets (b):
Net investment income 4.81% 4.77% 5.00% 5.06% 5.62% 5.68%
Total expenses 1.54% 1.45% 1.46% 1.44% 1.49% 1.46%
Expenses reimbursed or offset (.84)% (.75)% (1.06)% (1.08)% (1.27)% (1.46)%
Net expenses .70% .70% .40% .36% .22% --
Portfolio turnover rate 53% 49% 87% 69% 22% 51%
Net assets, end of period (in thousands) $22,522 $21,400 $18,327 $19,949 $18,613 $18,656
<FN>
(a) Total returns for periods less than one year are not annualized.
(b) 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. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
</FN>
</TABLE>
102
<PAGE>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
INCOME FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $15.32 $14.49 $14.94 $13.35 $12.57 $14.06
- -----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .19 .23 .31 .35 .35 .31
Net realized and unrealized gain (loss) .26 2.84 1.77 1.84 .79 (1.06)
------- ------- ------ ------ ------- -------
Total from investment activities .45 3.07 2.08 2.19 1.14 (.75)
------- ------- ------ ------ ------- -------
Distributions
From net investment income (.11) (.28) (.27) (.35) (.34) (.31)
In excess of net investment income -- -- -- -- -- (.03)
From net realized gains (1.45) (1.96) (2.26) (.25) (.02) (.01)
In excess of net realized gains -- -- -- -- -- (.39)
------- ------- ------ ------ ------- -------
Total distributions (1.56) (2.24) (2.53) (.60) (.36) (.74)
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $14.21 $15.32 $14.49 $14.94 $13.35 $12.57
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 3.28% 23.92% 15.58% 16.60% 9.31% (5.83)%
Ratios to Average Net Assets (b):
Net investment income 1.65% 1.54% 2.18% 2.45% 2.59% 2.27%
Total expenses 2.44% 2.14% 2.20% 2.10% 2.01% 1.79%
Expenses reimbursed or offset -- -- (.01)% (.02)% (.03)% (.05)%
Net expenses 2.44% 2.14% 2.19% 2.08% 1.98% 1.74%
Portfolio turnover rate 53% 29% 88% 51% 7% 7%
Net assets, end of period (in thousands) $11,146 $11,137 $9,615 $9,698 $10,230 $11,865
<FN>
(a) Total returns for periods less than one year are not annualized.
(b) 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. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
</FN>
</TABLE>
103
<PAGE>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $38.80 $31.34 $24.55 $20.08 $19.52 $20.60
- ----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .18 .38 .38 .41 .44 .44
Net realized and unrealized gain (loss) 3.26 8.06 7.64 4.44 2.68 (.75)
------- ------- ------- ------- ------- -------
Total from investment activities 3.44 8.44 8.02 4.85 3.12 (.31)
------- ------- ------- ------- ------- -------
Distributions
From net investment income (.10) (.37) (.43) (.38) (.39) (.44)
In excess of net investment income -- (.03) -- -- -- (.02)
From net realized gains (1.12) (.58) (.80) -- -- (.31)
In excess of net realized gains -- -- -- -- (2.17) --
------- ------- ------- ------- ------- -------
Total distributions (1.22) (.98) (1.23) (.38) (2.56) (.77)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $41.02 $38.80 $31.34 $24.55 $20.08 $19.52
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 9.04% 27.31% 33.68% 24.31% 17.98% (1.67)%
Ratios to Average Net Assets (b):
Net investment income 0.92% 1.03% 1.51% 1.84% 2.33% 2.11%
Total expenses 1.63% 1.61% 1.81% 1.90% 2.17% 2.08%
Expenses reimbursed or offset (.63)% (.64)% (1.14)% (1.22)% (1.47)% (1.47)%
Net expenses 1.00% .97% .67% .68% .70% .61%
Portfolio turnover rate 28% 24% 7% 16% 97% 117%
Net assets, end of period (in thousands) $46,576 $34,671 $25,478 $15,220 $11,931 $10,227
<FN>
(a) Total returns for periods less than one year are not annualized.
(b) 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. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
</FN>
</TABLE>
104
<PAGE>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
REAL ESTATE FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998* 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $13.68 $14.22 $10.97 $9.80 $9.86 $10.96
- ------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .14 .27 .40 .42 .23 .22
Net realized and unrealized gain (loss) (1.42) .03 3.15 1.27 (.13) (1.05)
------ ------- ------- ------ ------ -------
Total from investment activities (1.28) .30 3.55 1.69 .10 (.83)
------ ------- ------- ------ ------ -------
Distributions
From net investment income -- (.39) (.30) (.39) (.16) (.22)
In excess of net investment income -- -- -- -- -- (.02)
From net realized gains (2.95) (.45) -- -- -- --
Tax return of capital -- -- -- (.13) -- (.03)
------ ------- ------- ------ ------ -------
Total distributions (2.95) (.84) (.30) (.52) (.16) (.27)
- ------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.45 $13.68 $14.22 $10.97 $9.80 $9.86
- ------------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) (8.89)% 1.39% 32.44% 17.34% 1.09% (7.70)%
Ratios to Average Net Assets (b):
Net investment income 2.67% 2.05% 3.19% 3.63% 2.22% 1.96%
Total expenses 3.12% 2.01% 1.82% 2.27% 1.95% 1.62%
Expenses reimbursed or offset -- (.04)% (.02)% (.01)% (.03)% (.03)%
Net expenses 3.12% 1.97% 1.80% 2.26% 1.92% 1.59%
Portfolio turnover rate 54% 95% 118% 108% 48% 145%
Net assets, end of period (in thousands) $8,606 $11,368 $13,897 $8,220 $9,169 $14,597
<FN>
* Effective May 1, 1998, the fund changed to a new sub-advisor, Goodman & Co.
(a) Total returns for periods less than one year are not annualized.
(b) 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. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
</FN>
</TABLE>
105
<PAGE>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
CHINA REGION OPPORTUNITY FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998 1997 1996 1995 1994* 1994**
<S> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $4.09 $8.60 $6.43 $6.67 $7.75 $10.00 $9.92
- -----------------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (.03) .03 .05 .08 .10 .04 .04
Net realized and unrealized gain
(loss) (.19) 4.49 2.15 (.22) (1.09) (2.25) (2.17)
------- ------- ------- ------- ------- ------ ------
Total from investment activities (.22) 4.46 2.20 (.14) (.99) (2.21) (2.13)
------- ------- ------- ------- ------- ------ ------
Distributions
From net investment income (.03) (.05) (.03) (.08) (.09) (.04) (.04)
In excess of net investment income -- -- -- (.02) -- -- --
From net realized gains -- -- -- -- -- -- --
------- ------- ------- ------- ------- ------ ------
Total distributions (.03) (.05) (.03) (.10) (.09) (.04) (.04)
- -----------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $3.84 $4.09 $8.60 $6.43 $6.67 $7.75 $7.75
- -----------------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) (5.38)% (52.06)% 34.38% (2.07)% (12.79)% (22.11)% (21.48)%
Ratios to Average Net Assets (b):
Net investment income (loss) (1.52)% .39% .87% 1.24% 1.53% 1.51% 1.33%
Total expenses 4.47% 2.60% 2.54% 2.60% 2.51% 3.10% 3.26%
Expenses reimbursed or offset -- -- (.32)% (.45)% (.56)% (1.48)% (1.38)%
Net expenses 4.47% 2.60% 2.22% 2.15% 1.95% 1.62% 1.88%
Portfolio turnover rate 6% 17% 24% 37% 54% 13% 13%
Net assets, end of period (in
thousands) $15,604 $19,460 $42,099 $20,967 $19,022 $7,655 $7,655
<FN>
(a) Total returns for periods less than one year are not annualized.
(b) 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. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
* For the period January 10, 1994, commencement of operations, through June
30, 1994.
** For the period February 10, 1994, effective date of registration and public
offering, through June 30, 1994.
</FN>
</TABLE>
106
<PAGE>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
GLOBAL RESOURCES FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $4.47 $7.33 $6.98 $5.76 $5.74 $6.10
- ----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (.04) (.01) (.05) (.01) (.03) (.02)
Net realized and unrealized gain (loss) (.75) (1.95) 1.34 1.31 .36 (.18)
------- ------- ------- ------- ------- -------
Total from investment activities (.79) (1.96) 1.29 1.30 .33 (.20)
------- ------- ------- ------- ------- -------
Distributions
From net investment income -- -- (.04) -- -- --
In excess of net investment income -- -- -- (.01) -- (.01)
From net realized gains (.24) (.04) (.90) (.07) -- (.15)
In excess of net realized gains -- (.86) -- -- (.31) --
------- ------- ------- ------- ------- -------
Total distributions (.24) (.90) (.94) (.08) (.31) (.16)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $3.44 $4.47 $7.33 $6.98 $5.76 $5.74
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) (17.75)% (29.79)% 18.96% 22.80% 5.94% (3.73)%
Ratios to Average Net Assets (b):
Net investment income (loss) (1.92)% 1.51% (.76)% (.13)% (.60)% (.34)%
Total expenses 4.42% 2.42% 2.34% 2.58% 2.51% 2.44%
Expenses reimbursed or offset -- (.04)% (.04)% (.01)% (.02)% (.01)%
Net expenses 4.42% 2.38% 2.30% 2.57% 2.49% 2.43%
Portfolio turnover rate 71% 192% 52% 117% 50% 58%
Net assets, end of period (in thousands) $14,617 $18,958 $29,983 $24,534 $21,452 $21,620
<FN>
(a) Total returns for periods less than one year are not annualized.
(b) 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. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
</FN>
</TABLE>
107
<PAGE>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
WORLD GOLD FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.86 $15.95 $21.12 $15.81 $15.63 $14.59
- ----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) -- (.05) (.12) (.08) (.12) (.09)
Net realized and unrealized gain
(loss) (.47) (5.90) (3.94) 5.39 .33 1.13
-------- -------- -------- -------- -------- --------
Total from investment activities (.47) (5.95) (4.06) 5.31 .21 1.04
-------- -------- -------- -------- -------- --------
Distributions
From net investment income (.01) -- (1.11) -- -- --
In excess of net investment income -- (.14) -- -- (.03) --
From net realized gains -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions (.01) (.14) (1.11) -- (.03) --
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $9.38 $9.86 $15.95 $21.12 $15.81 $15.63
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) (4.75)% (37.41)% (20.10)% 33.59% 1.36% 7.13%
Ratios to Average Net Assets (b):
Net investment income (loss) .15% (.72)% (.60)% (.40)% (.66)% (.66)%
Total expenses 2.12% 1.74% 1.54% 1.53% 1.58% 1.57%
Expenses reimbursed or offset (.04)% -- (.04)% (.02)% (.03)% (.04)%
Net expenses 2.08% 1.74% 1.52% 1.51% 1.55% 1.53%
Portfolio turnover rate 283% 43% 40% 26% 28% 20%
Net assets, end of period (in
thousands) $108,823 $149,759 $187,466 $248,781 $181,473 $202,819
<FN>
(a) Total returns for periods less than one year are not annualized.
(b) 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. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
</FN>
</TABLE>
108
<PAGE>
- ----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- ----------------------------------------------------------------------------
GOLD SHARES FUND
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER 31, 1998
(UNAUDITED) AND EACH YEAR ENDED JUNE 30,
<TABLE>
<CAPTION>
12/98 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $3.79 $9.40 $18.40 $21.40 $24.80 $24.90
- ----------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (.08) .01 .40 .50 .60 .70
Net realized and unrealized gain (loss) .11 (5.50) (8.90) (3.00) (3.30) (0.20)
------- ------- ------- -------- -------- --------
Total from investment activities .03 (5.49) (8.50) (2.50) (2.70) 0.50
------- ------- ------- -------- -------- --------
Distributions
From net investment income -- (.11) (.50) (.50) (.60) (.60)
In excess of net investment income -- (.01) -- -- (.10) --
From net realized gains -- -- -- -- -- --
------- ------- ------- -------- -------- --------
Total distributions -- (.12) (.50) (.50) (.70) (.60)
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $3.82 $3.79 $9.40 $18.40 $21.40 $24.80
- ----------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) .79% (58.83)% (46.49)% (11.73)% (11.21)% 1.85%
Ratios to Average Net Assets (b):
Net investment income (loss) (3.38)% .53% 2.68% 1.81% 2.47% 2.61%
Total expenses 5.67% 2.67% 1.84% 1.58% 1.47% 1.52%
Expenses reimbursed or offset (.20)% (.20)% (.04)% (.04)% (.05)% (.06)%
Net expenses 5.47% 2.47% 1.80% 1.54% 1.42% 1.46%
Portfolio turnover rate 484% 220% 44% 24% 33% 29%
Net assets, end of period (in thousands) $37,772 $46,251 $79,598 $153,839 $211,171 $263,827
<FN>
(a) Total returns for periods less than one year are not annualized.
(b) 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. Such amounts would decrease the net
investment income ratio had such reductions not occurred.
</FN>
</TABLE>
109
<PAGE>
- ----------------------------------------------------------------------------
NOTES
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
- ----------------------------------------------------------------------------
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 2
<NAME> ALL AMERICAN EQUITY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 28898192
<INVESTMENTS-AT-VALUE> 46751442
<RECEIVABLES> 7255658
<ASSETS-OTHER> 21241
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 54028341
<PAYABLE-FOR-SECURITIES> 7284783
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 167180
<TOTAL-LIABILITIES> 7451963
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 28653357
<SHARES-COMMON-STOCK> 1135353
<SHARES-COMMON-PRIOR> 893573
<ACCUMULATED-NII-CURRENT> 71893
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (2122)
<ACCUM-APPREC-OR-DEPREC> 17853250
<NET-ASSETS> 46576378
<DIVIDEND-INCOME> 216372
<INTEREST-INCOME> 158419
<OTHER-INCOME> 0
<EXPENSES-NET> 197691
<NET-INVESTMENT-INCOME> 177100
<REALIZED-GAINS-CURRENT> 420009
<APPREC-INCREASE-CURRENT> 3356552
<NET-CHANGE-FROM-OPS> 3953661
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (88996)
<DISTRIBUTIONS-OF-GAINS> (1212357)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 19246476
<NUMBER-OF-SHARES-REDEEMED> (11259966)
<SHARES-REINVESTED> 1266586
<NET-CHANGE-IN-ASSETS> 11905404
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 790226
<OVERDISTRIB-NII-PRIOR> (16211)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 148338
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 316441
<AVERAGE-NET-ASSETS> 38470729
<PER-SHARE-NAV-BEGIN> 38.80
<PER-SHARE-NII> .18
<PER-SHARE-GAIN-APPREC> 3.26
<PER-SHARE-DIVIDEND> (.10)
<PER-SHARE-DISTRIBUTIONS> (1.12)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 41.02
<EXPENSE-RATIO> 1.00
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 16
<NAME> CHINA REGION OPPORTUNITY FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 27985295
<INVESTMENTS-AT-VALUE> 15674846
<RECEIVABLES> 481930
<ASSETS-OTHER> 17090
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 16173866
<PAYABLE-FOR-SECURITIES> 295960
<SENIOR-LONG-TERM-DEBT> 274099
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 570059
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 35620509
<SHARES-COMMON-STOCK> 4059583
<SHARES-COMMON-PRIOR> 4753747
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (121312)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (7584970)
<ACCUM-APPREC-OR-DEPREC> (12310420)
<NET-ASSETS> 15603807
<DIVIDEND-INCOME> 216886
<INTEREST-INCOME> 13085
<OTHER-INCOME> 0
<EXPENSES-NET> 349004
<NET-INVESTMENT-INCOME> (119033)
<REALIZED-GAINS-CURRENT> (2542986)
<APPREC-INCREASE-CURRENT> 1635418
<NET-CHANGE-FROM-OPS> (1026601)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (121787)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 7393483
<NUMBER-OF-SHARES-REDEEMED> (10101133)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (3856038)
<ACCUMULATED-NII-PRIOR> 119508
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (5041984)
<GROSS-ADVISORY-FEES> 99998
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 349004
<AVERAGE-NET-ASSETS> 15611232
<PER-SHARE-NAV-BEGIN> 4.09
<PER-SHARE-NII> (.03)
<PER-SHARE-GAIN-APPREC> (.19)
<PER-SHARE-DIVIDEND> (.03)
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.84
<EXPENSE-RATIO> 4.47
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 3
<NAME> GLOBAL RESOURCES FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 18743585
<INVESTMENTS-AT-VALUE> 14616498
<RECEIVABLES> 945605
<ASSETS-OTHER> 7130
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 15569233
<PAYABLE-FOR-SECURITIES> 870147
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 82366
<TOTAL-LIABILITIES> 952513
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 26258937
<SHARES-COMMON-STOCK> 4249462
<SHARES-COMMON-PRIOR> 4241131
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (205126)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (7310004)
<ACCUM-APPREC-OR-DEPREC> (4127087)
<NET-ASSETS> 14616720
<DIVIDEND-INCOME> 139500
<INTEREST-INCOME> 62036
<OTHER-INCOME> 0
<EXPENSES-NET> 356297
<NET-INVESTMENT-INCOME> (154761)
<REALIZED-GAINS-CURRENT> (2785401)
<APPREC-INCREASE-CURRENT> (361483)
<NET-CHANGE-FROM-OPS> (3301645)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (944679)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 3527678
<NUMBER-OF-SHARES-REDEEMED> (3622576)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (4341222)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (50365)
<OVERDIST-NET-GAINS-PRIOR> (3579924)
<GROSS-ADVISORY-FEES> 82545
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 356297
<AVERAGE-NET-ASSETS> 16117101
<PER-SHARE-NAV-BEGIN> 4.47
<PER-SHARE-NII> (.04)
<PER-SHARE-GAIN-APPREC> (.75)
<PER-SHARE-DIVIDEND> .00
<PER-SHARE-DISTRIBUTIONS> (.24)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.44
<EXPENSE-RATIO> 4.42
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> GOLD SHARES FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 36638738
<INVESTMENTS-AT-VALUE> 37684548
<RECEIVABLES> 13377937
<ASSETS-OTHER> 119761
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 51182246
<PAYABLE-FOR-SECURITIES> 3228012
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 10181905
<TOTAL-LIABILITIES> 13409917
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 243258432
<SHARES-COMMON-STOCK> 9897879
<SHARES-COMMON-PRIOR> 12216393
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (927765)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (205616268)
<ACCUM-APPREC-OR-DEPREC> 1057930
<NET-ASSETS> 37772329
<DIVIDEND-INCOME> 234151
<INTEREST-INCOME> 229092
<OTHER-INCOME> 0
<EXPENSES-NET> 1213846
<NET-INVESTMENT-INCOME> (750603)
<REALIZED-GAINS-CURRENT> (12399955)
<APPREC-INCREASE-CURRENT> 15919265
<NET-CHANGE-FROM-OPS> 2768707
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 482061153
<NUMBER-OF-SHARES-REDEEMED> (494440714)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (8478220)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (177162)
<OVERDIST-NET-GAINS-PRIOR> (193216313)
<GROSS-ADVISORY-FEES> 170798
<INTEREST-EXPENSE> 45944
<GROSS-EXPENSE> 1259790
<AVERAGE-NET-ASSETS> 44407724
<PER-SHARE-NAV-BEGIN> 3.79
<PER-SHARE-NII> (.08)
<PER-SHARE-GAIN-APPREC> .11
<PER-SHARE-DIVIDEND> .00
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.82
<EXPENSE-RATIO> 5.47
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 10
<NAME> U.S. GOVERNMENT SECURITIES SAVINGS FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 808489819
<INVESTMENTS-AT-VALUE> 808489819
<RECEIVABLES> 146170930
<ASSETS-OTHER> 1468157
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 956128906
<PAYABLE-FOR-SECURITIES> 137743580
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 7483922
<TOTAL-LIABILITIES> 145227502
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 811031798
<SHARES-COMMON-STOCK> 811010038
<SHARES-COMMON-PRIOR> 761615664
<ACCUMULATED-NII-CURRENT> 1624504
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (1754898)
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 810901404
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 21303478
<OTHER-INCOME> 0
<EXPENSES-NET> 1047481
<NET-INVESTMENT-INCOME> 20255997
<REALIZED-GAINS-CURRENT> 16252
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 20272249
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (20283160)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 414867979
<NUMBER-OF-SHARES-REDEEMED> (382165612)
<SHARES-REINVESTED> 16692370
<NET-CHANGE-IN-ASSETS> 49383826
<ACCUMULATED-NII-PRIOR> 1650857
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (1770340)
<GROSS-ADVISORY-FEES> 1684746
<INTEREST-EXPENSE> 573
<GROSS-EXPENSE> 2395671
<AVERAGE-NET-ASSETS> 793286089
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .03
<PER-SHARE-GAIN-APPREC> .00
<PER-SHARE-DIVIDEND> (.03)
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> .26
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 6
<NAME> INCOME FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 8769967
<INVESTMENTS-AT-VALUE> 11112898
<RECEIVABLES> 861083
<ASSETS-OTHER> 1461
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 11975442
<PAYABLE-FOR-SECURITIES> 816666
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 12413
<TOTAL-LIABILITIES> 829079
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 8803275
<SHARES-COMMON-STOCK> 784172
<SHARES-COMMON-PRIOR> 726866
<ACCUMULATED-NII-CURRENT> 57563
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (57406)
<ACCUM-APPREC-OR-DEPREC> 2342931
<NET-ASSETS> 11146363
<DIVIDEND-INCOME> 175730
<INTEREST-INCOME> 42115
<OTHER-INCOME> 0
<EXPENSES-NET> 129902
<NET-INVESTMENT-INCOME> 87943
<REALIZED-GAINS-CURRENT> (39892)
<APPREC-INCREASE-CURRENT> (43514)
<NET-CHANGE-FROM-OPS> 4537
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (28144)
<DISTRIBUTIONS-OF-GAINS> (738350)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1594483
<NUMBER-OF-SHARES-REDEEMED> (1884600)
<SHARES-REINVESTED> 1061616
<NET-CHANGE-IN-ASSETS> 9542
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 720836
<OVERDISTRIB-NII-PRIOR> (2236)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 40904
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 129902
<AVERAGE-NET-ASSETS> 10636906
<PER-SHARE-NAV-BEGIN> 15.32
<PER-SHARE-NII> .19
<PER-SHARE-GAIN-APPREC> .26
<PER-SHARE-DIVIDEND> (.11)
<PER-SHARE-DISTRIBUTIONS> (1.45)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 14.21
<EXPENSE-RATIO> 2.44
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 12
<NAME> NEAR-TERM TAX FREE FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 7391799
<INVESTMENTS-AT-VALUE> 7554871
<RECEIVABLES> 1066594
<ASSETS-OTHER> 11504
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8632969
<PAYABLE-FOR-SECURITIES> 916566
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 61256
<TOTAL-LIABILITIES> 977822
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 7685553
<SHARES-COMMON-STOCK> 715445
<SHARES-COMMON-PRIOR> 757416
<ACCUMULATED-NII-CURRENT> 8957
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (202435)
<ACCUM-APPREC-OR-DEPREC> 163072
<NET-ASSETS> 7655147
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 187080
<OTHER-INCOME> 0
<EXPENSES-NET> 28206
<NET-INVESTMENT-INCOME> 158874
<REALIZED-GAINS-CURRENT> 7842
<APPREC-INCREASE-CURRENT> 32463
<NET-CHANGE-FROM-OPS> 199179
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (155691)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 610638
<NUMBER-OF-SHARES-REDEEMED> (1178221)
<SHARES-REINVESTED> 117783
<NET-CHANGE-IN-ASSETS> (406312)
<ACCUMULATED-NII-PRIOR> 5774
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (210277)
<GROSS-ADVISORY-FEES> 20161
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 90606
<AVERAGE-NET-ASSETS> 7873246
<PER-SHARE-NAV-BEGIN> 10.64
<PER-SHARE-NII> .22
<PER-SHARE-GAIN-APPREC> .05
<PER-SHARE-DIVIDEND> (.21)
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.70
<EXPENSE-RATIO> .70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 11
<NAME> REAL ESTATE FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 9517397
<INVESTMENTS-AT-VALUE> 8580350
<RECEIVABLES> 1434200
<ASSETS-OTHER> 2791
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 10017341
<PAYABLE-FOR-SECURITIES> 1323141
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 88644
<TOTAL-LIABILITIES> 1411785
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 9838316
<SHARES-COMMON-STOCK> 911107
<SHARES-COMMON-PRIOR> 831027
<ACCUMULATED-NII-CURRENT> 118470
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (414178)
<ACCUM-APPREC-OR-DEPREC> (937052)
<NET-ASSETS> 8605556
<DIVIDEND-INCOME> 212082
<INTEREST-INCOME> 67659
<OTHER-INCOME> 0
<EXPENSES-NET> 150716
<NET-INVESTMENT-INCOME> 129025
<REALIZED-GAINS-CURRENT> (413838)
<APPREC-INCREASE-CURRENT> (737433)
<NET-CHANGE-FROM-OPS> (1022246)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> (2074983)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 969900
<NUMBER-OF-SHARES-REDEEMED> (2655035)
<SHARES-REINVESTED> 2019625
<NET-CHANGE-IN-ASSETS> (2762739)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 2074643
<OVERDISTRIB-NII-PRIOR> (10555)
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 37032
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 150716
<AVERAGE-NET-ASSETS> 9652776
<PER-SHARE-NAV-BEGIN> 13.68
<PER-SHARE-NII> .14
<PER-SHARE-GAIN-APPREC> (1.42)
<PER-SHARE-DIVIDEND> .00
<PER-SHARE-DISTRIBUTIONS> (2.95)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.45
<EXPENSE-RATIO> 3.12
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 7
<NAME> TAX FREE FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 22050586
<INVESTMENTS-AT-VALUE> 22856767
<RECEIVABLES> 1535474
<ASSETS-OTHER> 16437
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 24408678
<PAYABLE-FOR-SECURITIES> 1735350
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 151750
<TOTAL-LIABILITIES> 1887100
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 21679536
<SHARES-COMMON-STOCK> 1832181
<SHARES-COMMON-PRIOR> 1753631
<ACCUMULATED-NII-CURRENT> 15617
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 20244
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 806181
<NET-ASSETS> 22521578
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 602580
<OTHER-INCOME> 0
<EXPENSES-NET> 78224
<NET-INVESTMENT-INCOME> 524356
<REALIZED-GAINS-CURRENT> 134912
<APPREC-INCREASE-CURRENT> 51444
<NET-CHANGE-FROM-OPS> 710712
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (512834)
<DISTRIBUTIONS-OF-GAINS> (47637)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4706884
<NUMBER-OF-SHARES-REDEEMED> (4067556)
<SHARES-REINVESTED> 332366
<NET-CHANGE-IN-ASSETS> 1121935
<ACCUMULATED-NII-PRIOR> 4095
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> (67031)
<GROSS-ADVISORY-FEES> 83895
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 168645
<AVERAGE-NET-ASSETS> 21820833
<PER-SHARE-NAV-BEGIN> 12.20
<PER-SHARE-NII> .30
<PER-SHARE-GAIN-APPREC> .11
<PER-SHARE-DIVIDEND> (.29)
<PER-SHARE-DISTRIBUTIONS> (.03)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 12.29
<EXPENSE-RATIO> .70
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 5
<NAME> U.S. TREASURY SECURITIES CASH FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 193723221
<INVESTMENTS-AT-VALUE> 193723221
<RECEIVABLES> 85741795
<ASSETS-OTHER> 248698
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 279713714
<PAYABLE-FOR-SECURITIES> 83146846
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2097787
<TOTAL-LIABILITIES> 85244633
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 194415697
<SHARES-COMMON-STOCK> 194472360
<SHARES-COMMON-PRIOR> 149416580
<ACCUMULATED-NII-CURRENT> 39815
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 13569
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 194469081
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 4605218
<OTHER-INCOME> 0
<EXPENSES-NET> 910701
<NET-INVESTMENT-INCOME> 3694517
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 3694517
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3701389)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 1427905204
<NUMBER-OF-SHARES-REDEEMED> (1385819700)
<SHARES-REINVESTED> 2969063
<NET-CHANGE-IN-ASSETS> 45047695
<ACCUMULATED-NII-PRIOR> 46687
<ACCUMULATED-GAINS-PRIOR> 13569
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 454115
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 910701
<AVERAGE-NET-ASSETS> 176983127
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> .00
<PER-SHARE-DIVIDEND> (.02)
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 1.03
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the Semi-Annual Report filed on Form N-SAR and is qualified in its entirety
by refernce to such Semi-Annual Report on Form N-SAR.
</LEGEND>
<SERIES>
<NUMBER> 9
<NAME> WORLD GOLD FUND
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Jun-30-1999
<PERIOD-START> Jul-01-1998
<PERIOD-END> Dec-31-1998
<INVESTMENTS-AT-COST> 117924457
<INVESTMENTS-AT-VALUE> 107146284
<RECEIVABLES> 15579205
<ASSETS-OTHER> 36754
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 122762243
<PAYABLE-FOR-SECURITIES> 2772515
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 11167014
<TOTAL-LIABILITIES> 13939529
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 186270745
<SHARES-COMMON-STOCK> 11602494
<SHARES-COMMON-PRIOR> 15184144
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> (216813)
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> (66450352)
<ACCUM-APPREC-OR-DEPREC> (10780866)
<NET-ASSETS> 108822714
<DIVIDEND-INCOME> 866189
<INTEREST-INCOME> 474972
<OTHER-INCOME> 0
<EXPENSES-NET> 1250413
<NET-INVESTMENT-INCOME> 90748
<REALIZED-GAINS-CURRENT> (15791845)
<APPREC-INCREASE-CURRENT> 12575867
<NET-CHANGE-FROM-OPS> (3125230)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (139230)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 746319866
<NUMBER-OF-SHARES-REDEEMED> (783992006)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (40936600)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> (168331)
<OVERDIST-NET-GAINS-PRIOR> (50658507)
<GROSS-ADVISORY-FEES> 616272
<INTEREST-EXPENSE> 22560
<GROSS-EXPENSE> 1272973
<AVERAGE-NET-ASSETS> 120340067
<PER-SHARE-NAV-BEGIN> 9.86
<PER-SHARE-NII> .00
<PER-SHARE-GAIN-APPREC> (.47)
<PER-SHARE-DIVIDEND> (.01)
<PER-SHARE-DISTRIBUTIONS> .00
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.38
<EXPENSE-RATIO> 2.08
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
