U.S. GLOBAL INVESTORS FUNDS
SEMI-ANNUAL REPORT
DECEMBER 31, 1999
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U.S. GLOBAL INVESTORS FUNDS
SEMI-ANNUAL REPORT
(UNAUDITED)
DECEMBER 31, 1999
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TABLE OF CONTENTS
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LETTER TO SHAREHOLDERS ......................................... 1
MANAGEMENT TEAMS' PERSPECTIVES ................................. 6
PORTFOLIOS OF INVESTMENTS ...................................... 37
STATEMENTS OF ASSETS AND LIABILITIES ........................... 82
STATEMENTS OF OPERATIONS ....................................... 86
STATEMENTS OF CHANGES IN NET ASSETS ............................ 90
NOTES TO FINANCIAL STATEMENTS .................................. 98
FINANCIAL HIGHLIGHTS ........................................... 106
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[Graphic: USGI logo]
P.O. Box 781234
San Antonio, Texas 78278-1234
Tel 1*800*US*FUNDS
Fax 210*308*1217
www.usfunds.com
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U.S. GLOBAL INVESTORS FUNDS
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DEAR SHAREHOLDER:
Just two years ago, the economic outlook was rosy [Graphic: Picture of
both here and abroad. The global economy was Frank Holmes, CEO]
booming with the United States positioned as the
backbone of the world's economic support system.
Then within a few months the entire picture changed. The Russian economy
imploded. Japan entered a recession. Unemployment skyrocketed in Germany. And
the "Asian flu" led to the near collapse of several economies, including those
of Indonesia, Korea, Malaysia and Thailand. America came to the rescue with
capital injections into the economies of these countries, resulting in lower
interest rates and the first steps toward economic recovery.
Now, as we enter a new millennium, these economies are rebounding. Employment
has improved in Germany. The Nikkei, the Japanese stock market, enjoys high
returns. And for the first time in ten years, the four largest economies of the
world--the United States, Japan, Germany and China--experienced positive growth.
EXPECT A BULL MARKET
The message to investors is simple--macroeconomic financial cycles continue
unabated, only the names of the countries or regions change.
Those of you who have been regular readers of our quarterly Shareholder Report
know that our market forecast is based on the presidential election market cycle
theory. This theory holds that the economy fluctuates in fairly regular patterns
over the course of each presidential term. Years one and two tend to be weak,
while years three (pre-election) and four (election) offer strong returns for
the stock market. In fact, as Yale Hirsch reports in the 1999 Stock Trader's
Almanac, "The last two years (pre-election and election year) of the 42
administrations since 1832 produced a total net market gain of 703.2%, compared
to the 235.7% gain of the first two years of these administrations."
1
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U.S. Global Investors Funds
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Recent studies conclude that over the past 41 years there has been at least one
thing investors have been able to count on--stocks will rise, often sharply, in
the calendar year before a presidential-election year. Fred Allvine, a
management professor at Georgia Tech, said on BusinessToday.com, "Since 1957,
the Standard & Poor's 500 has risen 10 times out of 10 during the third year of
the four-year presidential cycle through 1996. During that time, only five times
each in the first and second year did the S&P show a gain. In the fourth year,
the S&P rose nine times out of 10."(1)
So here we are in an election year with the Summer Olympics approaching and Y2K
behind us. We believe we will see an exciting, volatile and dynamic year that
will include a bull market with one or two healthy corrections. Sectors like
technology and consumer cyclicals could easily have more exaggerated price
gyrations of 20 to 25%.
Why? The world is demonstrating renewed economic growth and vigor. Government
reforms and emerging market growth will help sustain this momentum, coupled with
the wealth-generating strength of the American economy.
On the earnings front, we believe there are exciting opportunities in technology
stocks, energy stocks, precious metals and basic materials like copper, nickel,
aluminum and pulp and paper products.
Why energy? The world's largest economies are each net oil importers. OPEC has
constrained supply while global demand has increased by 2%. Further, with Y2K
behind us, companies will spend on technology to meet productivity and profit
goals, a very positive and constructive scenario for natural resources funds
like our Global Resources Fund.
The swift economic recovery in Korea and the other Asian nations that were
affected by the "Asian flu" puts our China Region Opportunity Fund(2) in a
positive position to enjoy this economic rebound. We are restructuring the
portfolio to increase its exposure to the technology sector, which is in the
early stages of growth. Two of our analysts, Dr. Michael Ingraham and Dr. Jerry
Lu, recently visited Asia to investigate the potential for technology-related
stocks in this region.
Even with the protests in Seattle at the end of the year, the world is pushing
for greater trade. This time the greater macroeconomic forces favor open
markets, open competition and the American business model.
2
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U.S. Global Investors Funds
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Large-cap stocks, many of which are held in our All American Equity Fund,
continued to drive the market in 1999. Our Equity Income Fund, which invests in
companies showing strong earnings and dividend growth, is also favorably
positioned to take advantage of earnings opportunities that will arise out of
increasing corporate productivity and profitability.
INVESTMENT OPPORTUNITIES IN LOW RISK FUNDS
Although money market and tax-free funds did not garner the attention that was
focused on the technology and Internet stock funds this year, they should not be
overlooked as an important component of an investor's portfolio. Remember,
research studies indicate that over 90% of a successful portfolio's returns are
a result of selecting the right asset allocation--dividing your portfolio among
the major asset classes: stocks, bonds, cash and other investments. That means
that less than 10% depends on your ability to pick the right fund.
TAX EFFICIENT MONEY MARKET FUND
A money market fund such as the U.S. Government Securities Savings Fund is an
excellent means of ensuring instant liquidity. The fund has a "safety first"
investment philosophy dedicated to providing higher yields. According to Lipper
Analytical Services, Inc., the fund, since its inception in November 1990,(3)
has consistently ranked as one of the top ten money market funds.
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COMPARISON OF TAX-EQUIVALENT YIELDS FOR SELECTED AREAS AS OF 12/31/99
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<TABLE>
<CAPTION>
U.S.
GOVERNMENT AETNA SCHWAB STRONG
SECURITIES MONEY MARKET MONEY MARKET MONEY MARKET
SAVINGS FUND FUND FUND FUND
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Tax Efficient YES No No No
BANK NOTES, BANK NOTES, BANK NOTES,
GOVERNMENT CORPORATE NOTES, CORPORATE NOTES, CORPORATE NOTES,
INVESTS IN: ISSUES ONLY GOVERNMENT ISSUES GOVERNMENT ISSUES GOVERNMENT ISSUES
------------ ------------ ------------ ------------
7-Day Current Yield
as of 12/31/99 5.28% 5.69% 5.31% 5.37%
CITY/STATE HIGHEST
MARGINAL TAX RATE STATE TAX EQUIVALENT YIELD AS OF 12/31/99
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California 9.3% 5.82% 5.69% 5.31% 5.37%
New York 6.85% 5.67% 5.69% 5.31% 5.37%
New York City 10.21% 5.88% 5.69% 5.31% 5.37%
</TABLE>
Past performance is no guarantee of future results. The above tax rates are
applicable only to certain tax brackets. Your rate may vary depending on your
state laws and personal income levels. For an exact tax-equivalent yield,
consult your tax advisor. The tax-equivalent yield for competitors' funds may or
may not exceed the current yield provided based on the proportionate income
derived from any government issue income.
3
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U.S. GLOBAL INVESTORS FUNDS
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When global and domestic interest rates fall, smart investors diversify their
portfolio with tax-free income. Our Tax Free and Near-Term Tax Free Funds allow
investors to take advantage of the appreciation in bond prices when interest
rates fall.
BUY-AND-HOLD WINS
A recent study conducted by Boston-based financial research firm, DALBAR, found
that over the 15-year period ended in 1998, the average stock fund gained 509%.
By comparison, the typical fund investor who cashed out in less than three years
earned only 186%. That's an average return of 12.8% per year versus 7.25% per
year, respectively. And, it supports the often-stated investment mantra "buy and
hold."
THINK LONG TERM--HAVE A PLAN
Of course, you need to have a plan in order to implement a successful
buy-and-hold strategy. That's why we suggest investors use a dollar-cost
averaging program, such as our ABC Investment Plan(R) to build a position in a
fund and take advantage of the benefits of investing a set amount on a regular
basis. Of course, no investment plan can guarantee a profit or protect against
loss in a declining market, but the ABC Investment Plan(R) can help smooth out
the effects of market volatility.(4)
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.
We appreciate the confidence you have placed in us and look forward to helping
you reach your financial and retirement goals.
Sincerely,
/s/ Frank Holmes
Frank Holmes
Chairman & CEO
P.S. Max out your IRA contributions and take advantage of the tax benefits
offered by traditional, spousal, Roth and Education IRAs! Call
1-800-US-FUNDS today to see if you qualify for a free lifetime IRA!
4
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U.S. GLOBAL INVESTORS FUNDS
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For more complete information on any of our funds, including charges and ongoing
expenses, please call 1-800-US-FUNDS or visit www.usfunds.com for a free
prospectus. Please read the prospectus carefully before you invest or send
money.
(1) "History suggests 1999 could be up year for stock market," by Thomas
Granahan/Dow Jones, BusinessToday.com, November 29, 1999.
(2) Foreign and emerging market investing involves special risks such as
currency fluctuation, less public disclosure, as well as economic and
political risks.
(3) Lipper ranked the fund 10 out of 122, 6 out of 105 and 4 out of 90
government money market funds for the 1-, 3- and 5-year periods ended
December 31, 1999, respectively. On November 1, 1990, the fund's objective
and policies were changed to enable the fund to operate as a money market
fund. Like all mutual funds, an investment in the 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. The adviser for the fund guaranteed total fund
operating expenses (as a percentage of net assets) will not exceed 0.40%
through June 30, 2000. Lipper defines a government money market fund as a
fund that invests principally in financial instruments issued or guaranteed
by the U.S. Government, its agencies or its instrumentalities, with dollar-
weighted average maturities of less than 90 days.
(4) You should evaluate your ability to continue in such a program in view of
the possibility that you may have to redeem fund shares in periods of
declining share prices as well as periods of rising prices.
5
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MONEY MARKET FUNDS
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MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The U.S. Treasury Securities Cash Fund seeks to obtain a high level of current
income while maintaining the highest degree of safety of principal and
liquidity. The 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
U.S. TREASURY SECURITIES CASH FUND AS OF DECEMBER 31, 1999
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7-Day Yield 3.96%
7-Day Effective Yield 4.04%
Weighted Average Days to Maturity 33
U.S. GOVERNMENT SECURITIES SAVINGS FUND AS OF DECEMBER 31, 1999
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7-Day Yield 5.28%
7-Day Effective Yield 5.42%
Weighted Average Days to Maturity 66
SIX MONTHS IN REVIEW
The Federal Reserve increased interest rates by 25 basis points at its August 24
Federal Open Market Committee meeting and again at the November 16 meeting.
Record low unemployment levels and speculation that productivity gains would not
be enough to offset wage increases have led the Fed to conclude that increased
wages will drive inflation higher. Money supply reaccelerated primarily due to
Y2K concerns, but it appears that this is helping the stock market move higher.
6
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MONEY MARKET FUNDS
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Major commodities, such as oil, paper, steel and aluminum, moved higher. Several
commodity industries are already producing at very high capacity levels with
limited ability to increase capacity in the short term. We see evidence that the
rate hikes are taking their toll, as the economy appears to be slowing. The
housing sector is slowing, with mortgage rates above 8%. Refinance activity has
slowed dramatically. World economic recovery in Japan, Europe and the Pacific
Rim region continues. This international recovery could also lead to increased
prices for goods and services as demand picks up.
INVESTMENT HIGHLIGHTS
The funds performed well in this rising rate environment, and the yields for the
funds followed the Fed rate increases. In particular, the U.S. Government
Securities Savings Fund had significant exposure to floating rate securities,
which benefited directly from rising rates. The fund increased its yield from
4.60% on June 30, 1999, to 5.28% on December 31, 1999.
CURRENT OUTLOOK
The market's consensus is for the Fed to raise rates again in early 2000. The
debate will be over how much interest rates are increased.
7
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TAX FREE FUNDS
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MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
Both tax-free funds invest in securities paying 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
NEAR-TERM TAX FREE FUND
-----------------------
[Linear graph plotted from the data points in the following table.)
LEHMAN
NEAR-TERM 3-YEAR
TAX FREE MUNICIPAL
DATE FUND BOND INDEX
-------- ---------- ----------
12/31/90 $10,010.00 $10,000.00
01/31/91 $10,040.00 $10,126.64
02/28/91 $ 9,989.90 $10,217.90
03/28/91 $ 9,969.78 $10,222.55
04/30/91 $10,151.78 $10,322.19
05/31/91 $10,233.24 $10,388.30
06/28/91 $10,151.46 $10,397.62
07/31/91 $10,315.85 $10,480.49
08/30/91 $10,491.22 $10,584.78
09/30/91 $10,615.75 $10,673.25
10/31/91 $10,751.31 $10,749.60
11/29/91 $10,740.83 $10,812.93
12/31/91 $10,983.03 $11,028.96
01/31/92 $10,961.83 $11,076.45
02/28/92 $10,951.16 $11,080.17
03/31/92 $10,951.16 $11,055.03
04/30/92 $11,037.31 $11,138.84
05/29/92 $11,199.62 $11,231.96
06/30/92 $11,395.34 $11,368.84
07/31/92 $11,778.10 $11,590.46
08/31/92 $11,503.43 $11,538.32
09/30/92 $11,558.63 $11,632.37
10/30/92 $11,248.03 $11,586.74
11/30/92 $11,560.17 $11,667.75
12/31/92 $11,705.65 $11,738.52
01/29/93 $11,829.46 $11,826.99
02/26/93 $12,338.37 $12,011.36
03/31/93 $12,156.59 $11,975.98
04/30/93 $12,282.15 $12,045.81
05/28/93 $12,270.69 $12,077.47
06/30/93 $12,431.99 $12,155.69
07/30/93 $12,466.72 $12,161.28
08/31/93 $12,594.40 $12,274.89
09/30/93 $12,687.52 $12,328.89
10/29/93 $12,722.60 $12,354.97
11/30/93 $12,687.39 $12,338.21
12/31/93 $12,852.47 $12,468.57
01/31/94 $12,936.08 $12,569.14
02/28/94 $12,804.33 $12,451.81
03/31/94 $12,599.94 $12,301.89
04/29/94 $12,624.07 $12,374.52
05/31/94 $12,672.54 $12,432.26
06/30/94 $12,684.70 $12,435.98
07/29/94 $12,794.57 $12,539.34
08/31/94 $12,831.31 $12,584.04
09/30/94 $12,819.01 $12,552.38
10/31/94 $12,794.36 $12,521.65
11/30/94 $12,757.28 $12,499.30
12/30/94 $12,844.15 $12,553.31
01/31/95 $12,931.27 $12,657.60
02/28/95 $13,006.16 $12,790.76
03/31/95 $13,093.87 $12,905.30
04/28/95 $13,131.60 $12,949.06
05/31/95 $13,270.50 $13,147.41
06/30/95 $13,321.19 $13,179.07
07/31/95 $13,397.53 $13,317.81
08/31/95 $13,461.33 $13,422.11
09/29/95 $13,499.76 $13,460.29
10/31/95 $13,551.18 $13,524.54
11/30/95 $13,641.53 $13,611.14
12/29/95 $13,680.39 $13,667.01
01/31/96 $13,784.62 $13,774.09
02/29/96 $13,784.62 $13,776.89
03/29/96 $13,719.04 $13,743.37
04/30/96 $13,719.04 $13,760.13
05/31/96 $13,732.25 $13,772.23
06/28/96 $13,811.78 $13,854.18
07/31/96 $13,891.61 $13,931.46
08/30/96 $13,931.69 $13,951.95
09/30/96 $14,025.55 $14,036.69
10/31/96 $14,119.77 $14,134.46
11/29/96 $14,268.40 $14,266.69
12/31/96 $14,268.40 $14,273.21
01/31/97 $14,322.91 $14,335.60
02/28/97 $14,402.25 $14,405.44
03/31/97 $14,306.15 $14,330.94
04/30/97 $14,376.44 $14,392.40
05/30/97 $14,510.65 $14,509.73
06/30/97 $14,620.35 $14,595.40
07/31/97 $14,864.26 $14,768.60
08/29/97 $14,787.35 $14,739.73
09/30/97 $14,926.24 $14,844.96
10/31/97 $14,991.02 $14,911.07
11/28/97 $15,039.06 $14,953.91
12/31/97 $15,196.39 $15,055.40
01/30/98 $15,318.76 $15,155.04
02/27/98 $15,311.62 $15,186.70
03/31/98 $15,305.89 $15,210.91
04/30/98 $15,285.77 $15,190.43
05/29/98 $15,451.61 $15,331.04
06/30/98 $15,500.80 $15,382.25
07/31/98 $15,547.42 $15,438.12
08/31/98 $15,722.93 $15,588.04
09/30/98 $15,875.61 $15,686.75
10/30/98 $15,868.25 $15,763.11
11/30/98 $15,891.87 $15,801.29
12/31/98 $15,900.76 $15,839.46
01/29/99 $16,040.44 $15,982.87
02/26/99 $16,001.68 $16,000.56
03/31/99 $16,015.14 $16,014.53
04/30/99 $16,066.18 $16,063.88
05/28/99 $16,021.00 $16,040.60
06/30/99 $15,865.48 $15,944.69
07/30/99 $15,941.24 $16,023.84
08/31/99 $15,892.57 $16,043.39
09/30/99 $15,936.84 $16,103.92
10/29/99 $15,907.75 $16,105.78
11/30/99 $15,996.81 $16,176.55
12/31/99 $15,964.45 $16,150.48
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AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
DECEMBER 31, 1999
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INCEPTION FIVE YEAR ONE YEAR SIX MONTH
--------- --------- -------- ---------
NEAR-TERM TAX
FREE FUND
(Inception
12/4/90) 5.29% 4.45% 0.40% 0.62%
Lehman 3-Year
Municipal
Bond Index 5.47% 5.17% 1.96% 1.29%
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 value.
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.
8
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TAX FREE FUNDS
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TAX FREE FUND
-------------
[Linear graph plotted from the data points in the following table.)
LEHMAN
10-YEAR
TAX MUNICIPAL
FREE BOND
DATE FUND INDEX
-------- ---------- ----------
12/29/89 $10,000.00 $10,000.00
01/31/90 $ 9,902.14 $ 9,969.91
02/28/90 $ 9,982.21 $10,044.05
03/30/90 $ 9,982.21 $10,027.91
04/30/90 $ 9,792.67 $ 9,961.18
05/30/90 $10,064.69 $10,177.08
06/29/90 $10,164.88 $10,272.59
07/31/90 $10,338.72 $10,415.21
08/31/90 $10,007.88 $10,265.61
09/28/90 $10,072.45 $10,267.79
10/31/90 $10,248.51 $10,493.72
11/30/90 $10,583.91 $10,707.87
12/31/90 $10,602.64 $10,734.04
01/31/91 $10,734.47 $10,911.11
02/28/91 $10,762.82 $11,004.89
03/28/91 $10,743.85 $10,999.22
04/30/91 $10,905.63 $11,150.99
05/31/91 $10,972.53 $11,235.17
06/28/91 $10,895.74 $11,222.09
07/31/91 $11,059.51 $11,339.41
08/30/91 $11,185.30 $11,492.50
09/30/91 $11,301.81 $11,668.70
10/31/91 $11,389.57 $11,763.78
11/29/91 $11,379.78 $11,783.41
12/31/91 $11,654.94 $12,034.63
01/31/92 $11,624.80 $12,059.93
02/28/92 $11,634.89 $12,041.61
03/31/92 $11,624.75 $12,023.29
04/30/92 $11,716.53 $12,137.56
05/29/92 $11,870.15 $12,279.74
06/30/92 $12,096.64 $12,492.59
07/31/92 $12,551.95 $12,902.13
08/31/92 $12,302.57 $12,749.48
09/30/92 $12,344.31 $12,855.90
10/30/92 $12,071.62 $12,724.62
11/30/92 $12,345.74 $12,957.08
12/31/92 $12,493.97 $13,107.99
01/29/93 $12,590.00 $13,328.68
02/26/93 $13,029.31 $13,816.29
03/31/93 $12,857.16 $13,614.79
04/30/93 $13,030.03 $13,744.33
05/28/93 $13,073.43 $13,792.31
06/30/93 $13,302.21 $14,064.46
07/30/93 $13,324.09 $14,099.79
08/31/93 $13,598.70 $14,392.01
09/30/93 $13,764.14 $14,569.09
10/29/93 $13,808.47 $14,593.07
11/30/93 $13,674.84 $14,473.57
12/31/93 $13,965.79 $14,782.36
01/31/94 $14,114.12 $14,963.80
02/28/94 $13,804.80 $14,553.82
03/31/94 $13,286.69 $13,998.17
04/29/94 $13,332.98 $14,152.13
05/31/94 $13,460.96 $14,265.09
06/30/94 $13,402.49 $14,203.59
07/29/94 $13,614.10 $14,442.17
08/31/94 $13,684.95 $14,497.99
09/30/94 $13,518.78 $14,303.04
10/31/94 $13,256.51 $14,094.12
11/30/94 $12,933.19 $13,827.63
12/30/94 $13,234.24 $14,076.67
01/31/95 $13,598.82 $14,441.29
02/28/95 $13,891.79 $14,849.97
03/31/95 $14,075.71 $15,050.59
04/28/95 $14,112.65 $15,068.91
05/31/95 $14,471.34 $15,546.93
06/30/95 $14,409.23 $15,450.10
07/31/95 $14,484.08 $15,676.90
08/31/95 $14,621.79 $15,889.74
09/29/95 $14,722.37 $15,991.36
10/31/95 $14,899.14 $16,175.86
11/30/95 $15,089.34 $16,393.06
12/29/95 $15,229.41 $16,493.37
01/31/96 $15,318.92 $16,660.41
02/29/96 $15,241.88 $16,591.94
03/29/96 $15,061.35 $16,385.64
04/30/96 $15,022.53 $16,327.63
05/31/96 $15,035.52 $16,281.84
06/28/96 $15,166.04 $16,436.67
07/31/96 $15,297.01 $16,594.12
08/30/96 $15,297.01 $16,594.56
09/30/96 $15,481.95 $16,765.09
10/31/96 $15,614.50 $16,977.06
11/29/96 $15,854.11 $17,320.74
12/31/96 $15,814.00 $17,242.67
01/31/97 $15,867.70 $17,310.71
02/28/97 $15,999.82 $17,473.83
03/31/97 $15,849.57 $17,239.62
04/30/97 $15,984.14 $17,366.54
05/30/97 $16,186.16 $17,612.53
06/30/97 $16,368.44 $17,807.05
07/31/97 $16,774.55 $18,307.31
08/29/97 $16,632.23 $18,129.80
09/30/97 $16,813.95 $18,359.65
10/31/97 $16,893.36 $18,456.91
11/28/97 $16,992.65 $18,542.39
12/31/97 $17,250.83 $18,835.05
01/30/98 $17,401.64 $19,043.96
02/27/98 $17,379.00 $19,042.65
03/31/98 $17,361.96 $19,029.57
04/30/98 $17,289.27 $18,924.90
05/29/98 $17,569.79 $19,246.77
06/30/98 $17,630.12 $19,317.43
07/31/98 $17,686.48 $19,348.39
08/31/98 $17,965.06 $19,684.66
09/30/98 $18,177.78 $19,977.32
10/30/98 $18,116.36 $19,986.04
11/30/98 $18,200.04 $20,045.80
12/31/98 $18,219.20 $20,108.17
01/29/99 $18,432.67 $20,416.09
02/26/99 $18,310.68 $20,232.90
03/31/99 $18,342.02 $20,222.44
04/30/99 $18,392.97 $20,276.52
05/28/99 $18,230.54 $20,134.33
06/30/99 $17,874.38 $19,760.12
07/30/99 $17,910.74 $19,892.71
08/31/99 $17,681.15 $19,819.44
09/30/99 $17,675.05 $19,886.17
10/29/99 $17,389.92 $19,745.73
11/30/99 $17,602.29 $19,961.62
12/31/99 $17,412.20 $19,857.82
--------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
DECEMBER 31, 1999
--------------------------------------------------------------------
TEN YEAR FIVE YEAR ONE YEAR SIX MONTH
-------- --------- -------- ---------
Tax Free Fund 5.70% 5.64% (4.43)% (2.59)%
Lehman 10-Year
Municipal
Bond Index 7.10% 7.12% (1.25)% 0.49%
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 value.
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
Yields continued to rise during the third quarter of 1999, as the Federal
Reserve increased rates by 25 basis points on August 24. Intermediate municipal
yields rose during that time by approximately 10 to 25 basis points, with longer
maturities rising 35 to 40 basis points. This increase put pressure on the
municipal market as it underperformed the Treasury market.
Municipal yields increased more than Treasury yields. Retail buying remained
strong during the quarter, drawn in by the increased yields. Six-percent coupons
could be purchased at par or better in some of the longer maturities, which
brought retail investors to the market. Municipal
9
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- --------------------------------------------------------------------------------
TAX FREE FUNDS
- --------------------------------------------------------------------------------
bond funds suffering from net outflows were largely unable to take advantage of
this situation. That is one reason the market was down relative to Treasuries.
The Fed continued to increase interest rates in the fourth quarter as the
Federal Open Market Committee voted to raise rates by another 25 basis points.
The increase was largely expected, as inflation fears continued to persist.
Municipals generally fared better than Treasuries as yields on municipals rose
from 15 to 30 basis points compared with Treasuries that rose 35 to 65 basis
points. The municipal market had a flood of new issues early in the quarter only
to see it dry up in December as issuers and underwriters with Y2K concerns shied
away. The municipal market also saw considerable tax-loss selling, which put
pressure on the market at the end of the year.
INVESTMENT HIGHLIGHTS
The municipal market favored current coupons, high quality and general
obligations while healthcare bonds and low coupons fell out of favor. With a
rising interest rate environment and uncertainty around Y2K, it paid to be in
well-known credits with good structure. Toward the end of 1999, the retail
investor was driving the market as institutional investors suffered from
outflows. Both funds benefited. The Near-Term Tax Free Fund had exposure to high
coupon premium bonds as retail investors preferred to own these types of bonds.
The Tax Free Fund benefited from owning higher quality bonds with good
structure.
CURRENT OUTLOOK
The outlook for 2000 is positive. The Fed will increase rates again in the first
quarter of 2000. After these increases have been implemented, it is likely that
the Fed will have inflation under control. The bottom line is that inflation has
not rebounded as many expected and should remain under control for the
foreseeable future.
10
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TAX FREE FUNDS
- --------------------------------------------------------------------------------
MUNICIPAL BOND RATINGS--BASED ON TOTAL INVESTMENTS
NEAR-TERM TAX FREE FUND
-----------------------
AAA ..................................................... 50.57%
AA ...................................................... 9.90%
A ....................................................... 22.19%
BBB ..................................................... 13.62%
TAX FREE FUND
-------------
AAA ..................................................... 57.17%
AA ...................................................... 24.23%
A ....................................................... 12.99%
BBB ..................................................... 3.18%
11
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- --------------------------------------------------------------------------------
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Equity Income Fund invests in equity and debt securities that demonstrate
attractive value in the ever-changing financial marketplace. With an emphasis on
both income generation and capital appreciation, the fund seeks preservation of
capital, enabling investors to lessen their risk exposure with lower volatility
while taking advantage of growth opportunities. More specifically, the fund
seeks to invest in companies with strong earnings and dividend growth.
Benchmarked to the BARRA Value Index, the fund is invested across eleven
industry sectors.
The name of the fund was changed to the Equity Income Fund on November 1, 1999.
PERFORMANCE
EQUITY INCOME FUND
[Linear graph plotted from the data points in the following table.)
EQUIRY S&P S&P/BARRA
INCOME 500 500 VALUE
DATE FUND INDEX INDEX
-------- ---------- ---------- ----------
12/29/89 $10,000.00 $10,000.00 $10,000.00
01/31/90 $ 9,343.40 $ 9,329.03 $ 9,413.00
02/28/90 $ 9,328.30 $ 9,448.98 $ 9,604.09
03/30/90 $ 9,313.21 $ 9,699.17 $ 9,718.37
04/30/90 $ 8,796.23 $ 9,457.56 $ 9,387.96
05/30/90 $ 9,358.82 $10,377.85 $10,135.23
06/29/90 $ 9,366.43 $10,307.89 $ 9,943.67
07/31/90 $ 9,289.84 $10,274.95 $ 9,944.67
08/31/90 $ 8,746.08 $ 9,347.34 $ 9,069.54
09/28/90 $ 8,730.76 $ 8,893.10 $ 8,649.63
10/31/90 $ 9,047.54 $ 8,855.50 $ 8,526.80
11/30/90 $ 9,178.89 $ 9,426.79 $ 9,109.17
12/31/90 $ 9,132.53 $ 9,689.13 $ 9,315.04
01/31/91 $ 9,116.53 $10,110.03 $ 9,755.64
02/28/91 $ 9,444.69 $10,832.16 $10,391.72
03/28/91 $ 9,404.67 $11,094.21 $10,486.29
04/30/91 $ 9,404.67 $11,120.59 $10,569.11
05/31/91 $ 9,501.13 $11,598.68 $11,073.26
06/28/91 $ 9,171.56 $11,067.71 $10,522.92
07/31/91 $ 9,390.32 $11,583.13 $10,940.68
08/30/91 $ 9,625.28 $11,856.75 $11,099.32
09/30/91 $ 9,876.44 $11,658.25 $10,982.79
10/31/91 $ 9,998.88 $11,814.65 $11,143.13
11/29/91 $10,039.69 $11,339.90 $10,521.35
12/31/91 $10,439.65 $12,634.62 $11,416.72
01/31/92 $10,101.55 $12,399.46 $11,416.72
02/28/92 $10,340.69 $12,559.97 $11,648.48
03/31/92 $10,167.52 $12,315.99 $11,465.60
04/30/92 $10,333.39 $12,677.21 $12,025.11
05/29/92 $10,714.88 $12,739.20 $12,058.79
06/30/92 $10,549.01 $12,549.74 $11,959.90
07/31/92 $11,066.04 $13,062.01 $12,391.65
08/31/92 $11,007.66 $12,795.18 $12,032.29
09/30/92 $11,057.70 $12,945.59 $12,164.65
10/30/92 $11,108.04 $12,990.02 $12,066.85
11/30/92 $11,082.87 $13,431.12 $12,393.61
12/31/92 $11,284.22 $13,595.90 $12,618.32
01/29/93 $11,382.97 $13,709.45 $12,966.82
02/26/93 $11,957.51 $13,896.23 $13,413.54
03/31/93 $12,343.52 $14,189.24 $13,784.16
04/30/93 $12,235.48 $13,846.28 $13,728.48
05/28/93 $12,406.54 $14,215.75 $13,984.77
06/30/93 $12,730.66 $14,257.25 $14,169.65
07/30/93 $12,893.65 $14,199.84 $14,345.65
08/31/93 $13,563.68 $14,737.44 $14,907.71
09/30/93 $13,464.08 $14,624.42 $14,902.25
10/29/93 $13,509.51 $14,926.74 $14,983.20
11/30/93 $12,864.47 $14,784.47 $14,715.12
12/31/93 $13,282.38 $14,963.21 $14,965.63
01/31/94 $13,603.12 $15,471.44 $15,663.29
02/28/94 $13,018.24 $15,051.89 $15,096.65
03/31/94 $12,254.13 $14,396.93 $14,475.75
04/29/94 $12,519.49 $14,581.37 $14,780.64
05/31/94 $12,263.60 $14,819.74 $15,025.21
06/30/94 $11,988.76 $14,457.08 $14,609.68
07/29/94 $12,399.21 $14,931.47 $15,103.92
08/31/94 $12,609.20 $15,542.23 $15,530.90
09/30/94 $12,351.48 $15,162.48 $14,983.84
10/31/94 $12,495.44 $15,502.64 $15,310.01
11/30/94 $11,986.79 $14,938.75 $14,689.66
12/30/94 $11,919.61 $15,160.05 $14,870.07
01/31/95 $12,190.95 $15,552.93 $15,272.78
02/28/95 $12,404.15 $16,158.46 $15,865.51
03/31/95 $12,462.29 $16,634.50 $16,302.96
04/28/95 $12,754.60 $17,123.96 $16,839.69
05/31/95 $13,193.07 $17,807.34 $17,588.92
06/30/95 $13,105.38 $18,220.23 $17,722.45
07/31/95 $13,331.17 $18,824.18 $18,332.91
08/31/95 $13,350.80 $18,871.17 $18,489.51
09/29/95 $13,802.37 $19,667.12 $19,132.61
10/31/95 $13,624.79 $19,596.85 $18,834.68
11/30/95 $14,058.88 $20,456.15 $19,821.88
12/29/95 $14,581.78 $20,850.19 $20,371.26
01/31/96 $14,844.15 $21,559.01 $20,981.14
02/29/96 $14,874.42 $21,759.57 $21,177.85
03/29/96 $14,904.69 $21,969.07 $21,673.59
04/30/96 $15,036.77 $22,292.67 $21,894.24
05/31/96 $15,046.93 $22,866.61 $22,224.24
06/28/96 $15,280.61 $22,953.78 $22,116.96
07/31/96 $14,738.53 $21,940.25 $21,183.89
08/30/96 $14,984.00 $22,403.74 $21,768.72
09/30/96 $15,076.05 $23,663.56 $22,701.07
10/31/96 $15,302.45 $24,315.96 $23,469.54
11/29/96 $15,971.36 $26,152.33 $25,264.94
12/31/96 $16,105.14 $25,634.27 $24,851.50
01/31/97 $16,503.54 $27,234.92 $25,996.90
02/28/97 $16,539.76 $27,448.73 $26,185.97
03/31/97 $15,838.33 $26,323.01 $25,289.41
04/30/97 $16,032.96 $27,893.07 $26,237.56
05/30/97 $16,884.48 $29,590.03 $27,883.28
06/30/97 $17,660.59 $30,914.93 $28,949.20
07/31/97 $18,221.24 $33,373.41 $31,265.23
08/29/97 $17,684.96 $31,505.17 $29,852.28
09/30/97 $18,677.07 $33,229.63 $31,602.48
10/31/97 $18,358.65 $32,121.10 $30,441.17
11/28/97 $19,215.95 $33,606.83 $31,601.56
12/31/97 $19,822.19 $34,183.57 $32,303.19
01/30/98 $19,822.19 $34,561.29 $31,904.97
02/27/98 $20,600.92 $37,052.55 $34,298.12
03/31/98 $21,967.24 $38,948.44 $36,035.36
04/30/98 $21,967.24 $39,340.10 $36,461.89
05/29/98 $21,683.06 $38,664.83 $35,948.95
06/30/98 $21,870.62 $40,234.22 $36,221.94
07/31/98 $21,613.48 $39,806.88 $35,435.17
08/31/98 $19,842.12 $34,057.55 $29,737.30
09/30/98 $20,784.94 $36,239.41 $31,544.04
10/30/98 $21,357.93 $39,184.53 $34,014.92
11/30/98 $22,117.13 $41,558.46 $35,786.73
12/31/98 $22,602.97 $43,951.69 $37,043.67
01/29/99 $22,412.10 $45,788.91 $37,791.95
02/26/99 $21,712.22 $44,366.05 $36,978.31
03/31/99 $22,049.43 $46,140.61 $38,098.97
04/30/99 $22,990.76 $47,927.38 $41,383.50
05/28/99 $22,416.39 $46,797.24 $40,652.24
06/30/99 $23,308.26 $49,392.29 $42,213.60
07/30/99 $22,733.14 $47,852.33 $40,915.65
08/31/99 $21,902.42 $47,615.42 $39,879.18
09/30/99 $21,487.05 $46,311.70 $38,318.83
10/29/99 $22,797.04 $49,241.08 $40,482.03
11/30/99 $23,164.48 $50,241.99 $40,244.75
12/31/99 $24,077.92 $53,199.30 $41,756.89
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
DECEMBER 31, 1999
--------------------------------------------------------------------
TEN YEAR FIVE YEAR ONE YEAR SIX MONTH
-------- --------- -------- ---------
Equity Income Fund 9.18% 15.10% 6.53% 3.30 %
S&P 500 Index 18.19% 28.54% 21.04% 7.71 %
S&P/BARRA 500
Value Index 15.36% 22.94% 12.72% (1.08)%
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 value. The
S&P/BARRA 500 Value Index is a capitalization-weighted index of all
stocks in the S&P 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 S&P 500 Index market capitalization
is in the Value Index.
12
<PAGE>
- --------------------------------------------------------------------------------
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
The last six months of 1999 saw many of the same trends we saw in the first half
of the year. Inflationary fears continued to threaten the market as the Federal
Reserve hiked interest rates twice, first in August and then in November, to
bring the Fed Funds rate to 5.5%. Faced with a juggernaut economy, the prospects
for continued economic growth are excellent. The gross domestic product (GDP)
numbers for the third and fourth quarters were strong, up 3.7% quarter over
quarter for the third quarter and up 5.8% quarter over quarter for the fourth
quarter. The year ended with the Consumer Price Index (CPI) up a low 2.7%, and
the "Goldilocks" economy continues to thrive. Corporate earnings were strong in
the second half of the year, ending with holiday retail sales higher than
anticipated.
U.S. productivity continues to expand, with 1999 bringing a 4.9% increase. In
fact, productivity in each year of the 1990s was up an average 2.1%, the fastest
productivity increases since the 1960s.
INVESTMENT HIGHLIGHTS
The second half of 1999 was a time for building on the base we developed during
the first half of the year. We also raised the profile of earnings and dividend
growth in our stock selection. Thus, at the midpoint of the year, we were
overweighted in communications, including cellular and long distance. We were
underweighted in financials, capital goods, consumer staples and basic
materials. This same pattern continues, but we are adding to our exposure in
basic materials and in broadcast media, which is a group within the consumer
staples sector. Our exposure to financials is lower than it was in the first
half of the year, but this is only because of the threat of higher interest
rates to the sector.
CURRENT OUTLOOK
We continue to believe that the effect of higher interest rates should not put a
damper on the markets. More significantly, underlying fundamentals for U.S.
corporations are the best they have been in years, with earnings expected to
exceed 12% in 2000. Thus, despite a recent rise in interest rates, which is
normally deleterious to equity markets, the prospects for strong earnings are
excellent. In addition, we foresee another set of rate hikes, a consequence of
rising wages and tight labor markets. Although we think that these rises are
overdone, the market has and will continue to absorb such increases as attention
turns to corporate profitability.
13
<PAGE>
- --------------------------------------------------------------------------------
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------
GLOBAL CROSSING LTD ....................................... 6.66%
TELECOMMUNICATIONS
EXXON MOBIL CORP .......................................... 5.21%
PETROLEUM REFINING
PHILIPS ELECTRONICS N.V ................................... 4.03%
MANUFACTURING
CITIGROUP CAPITAL/CITIGROUP, INC .......................... 3.97%
FINANCIAL SERVICES
AT&T CORP ................................................. 3.29%
TELECOMMUNICATIONS
HEWLETT-PACKARD CO ........................................ 2.46%
COMPUTER & OFFICE EQUIPMENT
ENRON CORP ................................................ 2.40%
OIL & GAS EXTRACTION
BELL ATLANTIC CORP ........................................ 2.40%
TELECOMMUNICATIONS
SPRINT CORP ............................................... 2.37%
TELECOMMUNICATIONS
MOTOROLA, INC ............................................. 2.23%
TELECOMMUNICATIONS
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
--------------------------------------------
TELECOMMUNICATIONS ........................................ 22.64%
FINANCIAL SERVICES ........................................ 10.66%
PETROLEUM REFINING ........................................ 8.55%
BANKS ..................................................... 8.37%
MANUFACTURING ............................................. 8.36%
14
<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 in large-capitalization stocks, while
retaining the flexibility to seek out promising individual stock opportunities.
PERFORMANCE
ALL AMERICAN EQUITY FUND
------------------------
[Linear graph plotted from the data points in the following table.)
ALL
AMERICAN
EQUITY S&P 500
DATE FUND INDEX
-------- ---------- ----------
12/29/89 $10,000.00 $10,000.00
01/31/90 $ 9,259.47 $ 9,329.03
02/28/90 $ 9,374.28 $ 9,448.98
03/30/90 $ 9,500.57 $ 9,699.17
04/30/90 $ 9,236.51 $ 9,457.56
05/30/90 $ 9,592.42 $10,377.85
06/29/90 $ 9,374.28 $10,307.89
07/31/90 $ 9,478.96 $10,274.95
08/31/90 $ 8,757.86 $ 9,347.34
09/28/90 $ 8,478.72 $ 8,893.10
10/31/90 $ 8,240.30 $ 8,855.50
11/30/90 $ 8,676.45 $ 9,426.79
12/31/90 $ 8,874.17 $ 9,689.13
01/31/91 $ 9,248.80 $10,110.03
02/28/91 $ 9,898.56 $10,832.16
03/28/91 $10,126.85 $11,094.21
04/30/91 $10,115.14 $11,120.59
05/31/91 $10,513.19 $11,598.68
06/28/91 $10,015.63 $11,067.71
07/31/91 $10,454.66 $11,583.13
08/30/91 $10,682.95 $11,856.75
09/30/91 $10,466.36 $11,658.25
10/31/91 $10,583.44 $11,814.65
11/29/91 $10,150.27 $11,339.90
12/31/91 $11,239.05 $12,634.62
01/31/92 $11,044.66 $12,399.46
02/28/92 $11,156.58 $12,559.97
03/31/92 $10,920.96 $12,315.99
04/30/92 $11,221.38 $12,677.21
05/29/92 $11,256.72 $12,739.20
06/30/92 $11,068.22 $12,549.74
07/31/92 $11,486.45 $13,062.01
08/31/92 $11,227.27 $12,795.18
09/30/92 $11,333.30 $12,945.59
10/30/92 $11,356.91 $12,990.02
11/30/92 $11,728.78 $13,431.12
12/31/92 $11,870.45 $13,595.90
01/29/93 $11,959.79 $13,709.45
02/26/93 $12,114.65 $13,896.23
03/31/93 $12,364.80 $14,189.24
04/30/93 $12,065.41 $13,846.28
05/28/93 $12,376.78 $14,215.75
06/30/93 $12,412.70 $14,257.25
07/30/93 $12,352.45 $14,199.84
08/31/93 $12,798.34 $14,737.44
09/30/93 $12,695.91 $14,624.42
10/29/93 $12,938.31 $14,926.74
11/30/93 $12,780.75 $14,784.47
12/31/93 $13,059.51 $14,963.21
01/31/94 $13,393.26 $15,471.44
02/28/94 $13,158.40 $15,051.89
03/31/94 $12,515.62 $14,396.93
04/29/94 $12,733.45 $14,581.37
05/31/94 $12,602.75 $14,819.74
06/30/94 $12,204.44 $14,457.08
07/29/94 $12,623.35 $14,931.47
08/31/94 $13,023.49 $15,542.23
09/30/94 $12,654.61 $15,162.48
10/31/94 $12,773.93 $15,502.64
11/30/94 $12,252.68 $14,938.75
12/30/94 $12,365.72 $15,160.05
01/31/95 $12,585.40 $15,552.93
02/28/95 $12,939.72 $16,158.46
03/31/95 $13,265.69 $16,634.50
04/28/95 $13,657.74 $17,123.96
05/31/95 $14,113.95 $17,807.34
06/30/95 $14,399.08 $18,220.23
07/31/95 $14,764.79 $18,824.18
08/31/95 $14,700.26 $18,871.17
09/29/95 $15,331.29 $19,667.12
10/31/95 $15,374.56 $19,596.85
11/30/95 $15,944.26 $20,456.15
12/29/95 $16,182.23 $20,850.19
01/31/96 $16,681.37 $21,559.01
02/29/96 $16,862.22 $21,759.57
03/29/96 $16,992.43 $21,969.07
04/30/96 $17,239.32 $22,292.67
05/31/96 $17,776.69 $22,866.61
06/28/96 $17,900.14 $22,953.78
07/31/96 $17,280.38 $21,940.25
08/30/96 $17,520.99 $22,403.74
09/30/96 $18,410.53 $23,663.56
10/31/96 $18,791.34 $24,315.96
11/29/96 $20,116.84 $26,152.33
12/31/96 $19,787.29 $25,634.27
01/31/97 $21,145.39 $27,234.92
02/28/97 $21,168.16 $27,448.73
03/31/97 $20,351.78 $26,323.01
04/30/97 $21,737.50 $27,893.07
05/30/97 $22,963.32 $29,590.03
06/30/97 $23,929.52 $30,914.93
07/31/97 $25,395.53 $33,373.41
08/29/97 $24,089.86 $31,505.17
09/30/97 $25,190.13 $33,229.63
10/31/97 $24,416.82 $32,121.10
11/28/97 $25,381.55 $33,606.83
12/31/97 $25,783.52 $34,183.57
01/30/98 $26,289.38 $34,561.29
02/27/98 $27,931.50 $37,052.55
03/31/98 $29,224.95 $38,948.44
04/30/98 $29,669.65 $39,340.10
05/29/98 $29,240.56 $38,664.83
06/30/98 $30,456.83 $40,234.22
07/31/98 $30,370.46 $39,806.88
08/31/98 $26,389.64 $34,057.55
09/30/98 $28,067.55 $36,239.41
10/30/98 $29,838.50 $39,184.53
11/30/98 $31,703.90 $41,558.46
12/31/98 $33,219.67 $43,951.69
01/29/99 $34,402.03 $45,788.91
02/26/99 $33,365.44 $44,366.05
03/31/99 $34,223.06 $46,140.61
04/30/99 $35,067.67 $47,927.38
05/28/99 $34,491.06 $46,797.24
06/30/99 $36,401.18 $49,392.29
07/30/99 $35,173.72 $47,852.33
08/31/99 $34,718.50 $47,615.42
09/30/99 $33,658.50 $46,311.70
10/29/99 $35,685.82 $49,241.08
11/30/99 $36,206.90 $50,241.99
12/31/99 $38,073.02 $53,199.30
--------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
DECEMBER 31, 1999
--------------------------------------------------------------------
TEN YEAR FIVE YEAR ONE YEAR SIX MONTH
-------- --------- -------- ---------
All American Equity
Fund 14.30% 25.22% 14.61% 4.59%
S&P 500 Index 18.19% 28.54% 21.04% 7.71%
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 value. The
S&P 500 Index is an unmanaged but commonly used measure of common
stock total return performance.
15
<PAGE>
- --------------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
In the past six months we witnessed increased strength in global gross domestic
product (GDP). For the first time, the largest GDP nations, the United States,
Japan, Germany and China, experienced positive GDP growth during the same time.
Domestic real GDP grew at 3.9%, industrial production grew at 3.8% and
consumption remained robust.
Two sector-related political issues dominated the last six months of 1999. The
Medicare drug program, as proposed by Congress, put a damper on the healthcare
sector. We believe the political stance towards Medicare will remain hostile.
On a more positive note, the Senate passed the landmark HR-10 bill, which
repeals the Glass-Steagall Act that prohibited commercial banks from owning full
service brokerage firms. We believe strong fundamentals and attractive
valuations for the financial sector will bring about more opportunities for
consolidation.
INVESTMENT HIGHLIGHTS
Technology-based industries dominated the market in the last six months of 1999.
Electronic instruments led the way for the S&P, rising more than 93%, followed
by telecommunication equipment, up 63%, and electronic semiconductor companies,
which rose more than 47%. Our holdings in the financial and healthcare
industries were lackluster performers, primarily due to rising interest rates
and the opposition to healthcare reform. Both sectors remain attractive because
they now trade at a discount to their historical valuations. The
worst-performing sector was pollution control, which declined over 63%. The fund
avoided this sector by selling its pollution control securities early in the
third quarter.
We increased the fund's weighting in select energy and basic material companies
to take advantage of the improving corporate earnings for these companies. In
the energy sector, we added to our integrated oil company and exploration and
production company holdings to gain leverage from rising oil prices. In our
basic materials sector, we increased our holdings in copper and nickel mining
companies, which have benefited from contracting inventories and increased
demand from industrialized nations in Asia.
16
<PAGE>
- --------------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
CURRENT OUTLOOK
We believe global demand for energy and the performance of basic materials and
technology-based industries will once again drive corporate earnings in 2000.
Our analysis of earnings growth demonstrates that the greatest earnings growth
potential is forecast for these three sectors, which are expected to have
earnings growth of 36%, 34% and 31%, respectively.
Much of the near-term performance of the market will be driven by interest
rates, which we expect will increase in the first quarter of 2000. Going
forward, the domestic market should continue to see improved profitability from
overseas sales, especially in strengthening Asian and European economies.
17
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- --------------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------
MICROSOFT CORP ............................................ 6.23%
DATA PROCESSING & SOFTWARE
GENERAL ELECTRIC CO ....................................... 5.98%
HOUSEHOLD APPLIANCES
WAL-MART STORES, INC ...................................... 3.69%
RETAIL
CISCO SYSTEMS, INC ........................................ 2.96%
COMPUTERS & OFFICE EQUIPMENT
AMERICAN INTERNATIONAL GROUP .............................. 2.70%
INSURANCE
INTEL CORP ................................................ 2.68%
ELECTRONICS & COMPONENTS
FANNIE MAE ................................................ 2.62%
FINANCIAL SERVICES
AT&T CORP ................................................. 2.41%
TELECOMMUNICATIONS
IBM CORP .................................................. 2.35%
COMPUTERS & OFFICE EQUIPMENT
ORACLE CORP ............................................... 2.31%
DATA PROCESSING & SOFTWARE
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
-------------------------------------------
TELECOMMUNICATIONS ........................................ 11.73%
DATA PROCESSING & SOFTWARE ................................ 10.54%
RETAIL .................................................... 9.33%
PHARMACEUTICALS ........................................... 8.94%
COMPUTERS & OFFICE EQUIPMENT .............................. 8.88%
18
<PAGE>
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Real Estate Fund offers access to the potential long-term returns of the
real estate market. It is an attractive alternative to direct real estate
investment through participation in a diversified portfolio of fully liquid real
estate and real estate-related equities. In addition, because real estate
returns do not correlate with other asset class returns, risk is spread across
asset classes.
The fund seeks a total return through a combination of capital appreciation and
income. The fund predominantly invests in companies that derive at least 50% of
their revenue from the ownership, construction, management or sale of
residential, commercial or industrial real estate.
PERFORMANCE
REAL ESTATE FUND
----------------
[Linear graph plotted from the data points in the following table.)
DOW JONES
EQUITY
REAL REIT TOTAL
ESTATE S&P 500 RETURN
DATE FUND INDEX INDEX
-------- ---------- ---------- ----------
12/29/89 $10,000.00 $10,000.00 --
01/31/90 $ 9,289.62 $ 9,329.03 $10,000.00
02/28/90 $ 9,344.26 $ 9,448.98 $ 9,825.88
03/30/90 $ 9,322.40 $ 9,699.17 $ 9,908.55
04/30/90 $ 9,224.04 $ 9,457.56 $ 9,779.25
05/30/90 $ 9,289.62 $10,377.85 $ 9,794.91
06/29/90 $ 9,256.83 $10,307.89 $ 9,933.68
07/31/90 $ 8,902.93 $10,274.95 $ 9,770.41
08/31/90 $ 8,051.34 $ 9,347.34 $ 8,979.05
09/28/90 $ 7,465.19 $ 8,893.10 $ 8,325.93
10/31/90 $ 7,144.46 $ 8,855.50 $ 8,040.64
11/30/90 $ 7,586.84 $ 9,426.79 $ 8,576.90
12/31/90 $ 8,018.16 $ 9,689.13 $ 8,509.27
01/31/91 $ 8,544.32 $10,110.03 $ 9,467.83
02/28/91 $ 9,413.62 $10,832.16 $ 9,751.82
03/28/91 $10,042.72 $11,094.21 $10,642.54
04/30/91 $10,374.43 $11,120.59 $10,855.10
05/31/91 $10,511.69 $11,598.68 $10,983.60
06/28/91 $10,111.35 $11,067.71 $10,702.78
07/31/91 $10,122.79 $11,583.13 $10,909.68
08/30/91 $10,099.91 $11,856.75 $10,824.35
09/30/91 $10,568.88 $11,658.25 $11,093.80
10/31/91 $10,488.81 $11,814.65 $10,916.80
11/29/91 $10,385.87 $11,339.90 $10,895.72
12/31/91 $12,456.18 $12,634.62 $11,742.87
01/31/92 $13,456.39 $12,399.46 $12,329.86
02/28/92 $13,363.35 $12,559.97 $12,017.61
03/31/92 $13,014.44 $12,315.99 $11,830.48
04/30/92 $12,549.22 $12,677.21 $11,790.96
05/29/92 $12,619.00 $12,739.20 $12,300.99
06/30/92 $12,002.59 $12,549.74 $12,151.85
07/31/92 $12,592.69 $13,062.01 $12,670.91
08/31/92 $11,542.31 $12,795.18 $12,712.37
09/30/92 $11,766.55 $12,945.59 $12,989.04
10/30/92 $12,156.01 $12,990.02 $13,005.21
11/30/92 $12,486.47 $13,431.12 $13,290.12
12/31/92 $13,041.16 $13,595.90 $13,666.97
01/29/93 $13,375.86 $13,709.45 $14,444.52
02/26/93 $13,244.37 $13,896.23 $15,308.43
03/31/93 $13,710.55 $14,189.24 $16,627.07
04/30/93 $12,873.81 $13,846.28 $16,002.46
05/28/93 $12,706.47 $14,215.75 $15,612.74
06/30/93 $13,136.79 $14,257.25 $16,246.65
07/30/93 $13,076.86 $14,199.84 $16,490.76
08/31/93 $13,412.47 $14,737.44 $16,851.97
09/30/93 $14,299.44 $14,624.42 $17,688.50
10/29/93 $14,023.76 $14,926.74 $17,316.92
11/30/93 $12,980.97 $14,784.47 $16,349.34
12/31/93 $13,064.87 $14,963.21 $16,340.71
01/31/94 $13,480.41 $15,471.44 $16,773.28
02/28/94 $13,675.95 $15,051.89 $17,510.75
03/31/94 $12,576.01 $14,396.93 $16,882.85
04/29/94 $12,771.55 $14,581.37 $17,126.47
05/31/94 $12,612.67 $14,819.74 $17,487.79
06/30/94 $12,123.81 $14,457.08 $17,139.30
07/29/94 $11,976.26 $14,931.47 $17,022.33
08/31/94 $12,172.99 $15,542.23 $17,042.20
09/30/94 $11,841.00 $15,162.48 $16,795.67
10/31/94 $11,312.28 $15,502.64 $16,156.93
11/30/94 $10,783.55 $14,938.75 $15,571.76
12/30/94 $11,545.90 $15,160.05 $16,895.58
01/31/95 $11,159.79 $15,552.93 $16,423.33
02/28/95 $11,595.72 $16,158.46 $16,782.39
03/31/95 $11,458.71 $16,634.50 $16,812.21
04/28/95 $11,533.45 $17,123.96 $16,708.49
05/31/95 $12,044.11 $17,807.34 $17,428.75
06/30/95 $12,255.84 $18,220.23 $17,777.17
07/31/95 $12,480.95 $18,824.18 $18,004.88
08/31/95 $12,831.12 $18,871.17 $18,180.05
09/29/95 $13,056.22 $19,667.12 $18,558.40
10/31/95 $12,768.59 $19,596.85 $18,080.86
11/30/95 $12,931.16 $20,456.15 $18,250.12
12/29/95 $13,731.55 $20,850.19 $19,411.03
01/31/96 $13,795.24 $21,559.01 $19,701.93
02/29/96 $13,782.50 $21,759.57 $19,901.53
03/29/96 $13,935.35 $21,969.07 $19,900.39
04/30/96 $14,062.73 $22,292.67 $19,882.15
05/31/96 $14,330.23 $22,866.61 $20,382.41
06/28/96 $14,381.18 $22,953.78 $20,762.92
07/31/96 $14,328.74 $21,940.25 $20,838.99
08/30/96 $14,931.78 $22,403.74 $21,656.27
09/30/96 $15,364.40 $23,663.56 $22,110.56
10/31/96 $15,770.80 $24,315.96 $22,734.95
11/29/96 $16,413.16 $26,152.33 $23,792.71
12/31/96 $18,064.97 $25,634.27 $26,402.98
01/31/97 $18,276.41 $27,234.92 $26,587.90
02/28/97 $18,263.19 $27,448.73 $26,505.19
03/31/97 $18,316.05 $26,323.01 $26,551.52
04/30/97 $17,642.09 $27,893.07 $25,725.98
05/30/97 $18,117.83 $29,590.03 $26,485.42
06/30/97 $19,046.85 $30,914.93 $27,889.14
07/31/97 $19,877.30 $33,373.41 $28,637.76
08/29/97 $19,729.96 $31,505.17 $28,533.48
09/30/97 $21,645.36 $33,229.63 $31,238.14
10/31/97 $20,948.85 $32,121.10 $30,298.96
11/28/97 $21,256.92 $33,606.83 $30,934.95
12/31/97 $21,547.58 $34,183.57 $31,701.88
01/30/98 $21,200.94 $34,561.29 $31,411.39
02/27/98 $20,951.35 $37,052.55 $30,807.66
03/31/98 $21,450.52 $38,948.44 $31,524.32
04/30/98 $20,549.24 $39,340.10 $30,359.02
05/29/98 $20,133.26 $38,664.83 $30,111.63
06/30/98 $19,312.40 $40,234.22 $30,080.36
07/31/98 $18,620.66 $39,806.88 $27,991.23
08/31/98 $16,771.30 $34,057.55 $25,308.83
09/30/98 $17,321.87 $36,239.41 $26,936.98
10/30/98 $17,251.28 $39,184.53 $26,461.32
11/30/98 $17,773.62 $41,558.46 $26,826.64
12/31/98 $17,595.17 $43,951.69 $26,324.72
01/29/99 $17,427.59 $45,788.91 $25,692.22
02/26/99 $16,775.92 $44,366.05 $25,491.14
03/31/99 $16,757.30 $46,140.61 $25,296.33
04/30/99 $18,265.46 $47,927.38 $27,932.48
05/28/99 $18,339.94 $46,797.24 $28,425.77
06/30/99 $17,682.68 $49,392.29 $27,849.74
07/30/99 $16,678.19 $47,852.33 $26,991.97
08/31/99 $16,280.19 $47,615.42 $26,692.43
09/30/99 $15,882.19 $46,311.70 $25,521.51
10/29/99 $15,332.57 $49,241.08 $24,983.18
11/30/99 $14,896.66 $50,241.99 $24,481.50
12/31/99 $15,597.90 $53,199.30 $25,184.27
--------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
DECEMBER 31, 1999
--------------------------------------------------------------------
TEN YEAR FIVE YEAR ONE YEAR SIX MONTH
-------- --------- -------- ---------
Real Estate Fund 4.55% 6.20% (11.35)% (11.79)%
S&P 500 Index 18.19% 8.31% 21.04% 7.71%
Dow Jones
Equity REIT
Total Return
Index n/a 8.31% (4.33)% (9.57)%
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 value. 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.
19
<PAGE>
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
Real Estate Investment Trust (REIT) securities continue to be priced
inexpensively, both historically and relative to the general market, on the
basis of traditional valuation parameters such as cash flow multiples, dividend
yield and net asset value. Even earnings fundamentals have held up well. Real
estate markets in the United States have moved into a state of healthy
equilibrium, yet the stock market continues to place high values on technology
and other high-growth companies while undervaluing REITs.
For the second time in a year, Warren Buffett sparked a real estate rally by
auctioning off his 20-year old wallet containing a stock tip (a REIT). This
rally may indicate recognition of the continuing strong real estate
fundamentals.
INVESTMENT HIGHLIGHTS
The fund is currently overweighted in multi-family apartments, a sector that
presently exhibits the most stable cash flow characteristics of all property
types. REITs invested in Central Business District (CBD) office space remain in
favor, especially since unemployment rates are at 29-year lows. We have
increased our weighting in the industrial sector because e-commerce business
will require warehouse distribution facilities. We remain underweighted in
retail as we continue to assess the impact of e-commerce. It appears that
earlier fears of the Internet dominating the retail landscape are abating.
Security selection remains paramount. We are positioned in large-cap,
high-quality, well-managed companies.
CURRENT OUTLOOK
We anticipate a selective recovery favoring the large-cap, high-quality names.
REIT yields have risen to attractive levels (over 8%), and REIT securities are
trading at discounts to net asset value of up to 20%. We remain defensive and
continue to focus on multi-family apartment REITs. Because interest rates are
expected to rise, we are monitoring REITs' floating rate exposure vs.
fixed-rate, long-term financing. Real estate is an industry that is
fundamentally in good shape for long-term growth and represents very good value
relative to other industry groups.
20
<PAGE>
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------
APARTMENT INVESTMENT & MANAGEMENT CO ...................... 5.21%
RESIDENTIAL PROPERTIES
EQUITY OFFICE PROPERTIES TRUST ............................ 5.06%
OFFICE/INDUSTRIAL
POST PROPERTIES, INC ...................................... 4.83%
RESIDENTIAL PROPERTIES
MANUFACTURED HOME COMMUNITIES, INC ........................ 4.77%
RESIDENTIAL PROPERTIES
SPIEKER PROPERTIES, INC ................................... 4.77%
OFFICE/INDUSTRIAL
CADILLAC FAIRVIEW CORP .................................... 4.75%
OFFICE/INDUSTRIAL
SIMON PROPERTY GROUP, INC ................................. 4.72%
RETAIL PROPERTIES
LIBERTY PROPERTY TRUST .................................... 4.53%
OFFICE/INDUSTRIAL
TRIZEC HAHN CORP .......................................... 4.42%
OFFICE/INDUSTRIAL
H&R REAL ESTATE INVESTMENT TRUST .......................... 4.10%
OFFICE/INDUSTRIAL
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
-------------------------------------------
OFFICE/INDUSTRIAL ......................................... 49.29%
RESIDENTIAL PROPERTIES .................................... 25.44%
RETAIL PROPERTIES ......................................... 9.23%
FINANCIAL SERVICES ........................................ 3.56%
HOTELS & LODGING PROPERTIES ............................... 1.84%
21
<PAGE>
- --------------------------------------------------------------------------------
REAL ESTATE FUND
- --------------------------------------------------------------------------------
PORTFOLIO PROFILE DECEMBER 31, 1999
-----------------------------------------------------------------
COUNTRY DISTRIBUTION % OF INVESTMENTS
-------------------- ----------------
U.S 66.24%
Canada 22.37%
Other Foreign 0.75%
U.S. Repurchase Agreements 10.64%
Number of Stocks 28
22
<PAGE>
- --------------------------------------------------------------------
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The China Region Opportunity Fund seeks capital appreciation by focusing on
economic growth in the Greater China Region, including China, Hong Kong, Taiwan,
Korea, Singapore, Thailand and Malaysia. The fund emphasizes long-term growth
over current income.
PERFORMANCE
CHINA REGION OPPORTUNITY FUND
-----------------------------
[Linear graph plotted from the data points in the following table.)
INTERNA- MORGAN
CHINA TIONAL STANLEY
REGION FINANCE CAPITAL
OPPORTUNITY CORPORATION HANG SENG FAR EAST EX
DATE FUND CHINA INDEX 100 INDEX JAPAN INDEX
-------- ---------- --------- ---------- ---------
02/09/94 $10,000.00 10,000.00 $10,000.00 10,000.00
02/28/94 $ 9,465.73 9,499.49 $ 9,062.60 9,421.15
03/31/94 $ 8,155.24 7,780.03 $ 7,860.97 8,513.13
04/29/94 $ 8,094.61 7,383.05 $ 7,805.39 8,953.15
05/31/94 $ 8,417.99 7,811.94 $ 8,316.83 9,265.82
06/30/94 $ 7,852.07 6,846.73 $ 7,624.61 8,985.90
07/29/94 $ 8,267.47 7,713.08 $ 8,255.24 9,551.17
08/31/94 $ 8,774.06 8,243.17 $ 8,644.01 10,206.26
09/30/94 $ 8,834.85 8,451.00 $ 8,288.69 10,319.16
10/31/94 $ 8,662.41 8,348.25 $ 8,397.52 10,284.69
11/30/94 $ 7,698.79 7,095.04 $ 7,370.28 9,486.77
12/30/94 $ 7,191.63 6,089.36 $ 7,130.69 9,466.78
01/31/95 $ 6,430.88 5,174.75 $ 6,392.13 8,440.49
02/28/95 $ 6,735.18 5,760.10 $ 7,249.50 9,004.44
03/31/95 $ 6,714.89 5,854.28 $ 7,476.02 9,112.30
04/28/95 $ 6,441.02 5,129.60 $ 7,278.68 8,877.16
05/31/95 $ 7,019.19 5,897.87 $ 8,189.57 9,512.80
06/30/95 $ 6,846.75 5,744.53 $ 8,014.73 9,350.97
07/31/95 $ 7,072.58 6,006.85 $ 8,229.65 9,405.97
08/31/95 $ 6,990.46 5,728.96 $ 7,991.51 8,901.57
09/29/95 $ 6,939.14 5,605.20 $ 8,397.60 9,159.26
10/31/95 $ 6,692.41 5,291.51 $ 8,516.04 9,004.35
11/30/95 $ 6,312.05 4,786.33 $ 8,542.98 8,778.34
12/29/95 $ 6,178.40 4,534.13 $ 8,769.37 9,132.65
01/31/96 $ 6,642.56 4,977.82 $ 9,889.16 9,552.60
02/29/96 $ 6,766.33 5,304.74 $ 9,685.44 9,522.54
03/29/96 $ 6,580.67 5,025.30 $ 9,538.77 9,676.90
04/30/96 $ 6,549.73 4,962.25 $ 9,545.15 10,378.22
05/31/96 $ 6,621.93 5,097.69 $ 9,806.49 10,098.64
06/28/96 $ 6,704.44 5,109.36 $ 9,594.22 10,017.51
07/31/96 $ 6,621.03 4,970.81 $ 9,298.69 9,301.47
08/30/96 $ 6,631.46 5,142.06 $ 9,714.46 9,531.97
09/30/96 $ 6,662.74 5,120.26 $10,361.63 9,748.84
10/31/96 $ 6,683.69 5,071.22 $10,862.31 9,543.07
11/29/96 $ 7,207.49 5,548.38 $11,660.06 10,006.17
12/31/96 $ 7,898.91 6,389.04 $11,710.13 9,884.28
01/31/97 $ 7,877.95 6,333.00 $11,597.25 10,040.64
02/28/97 $ 8,097.95 6,430.29 $11,664.23 10,124.49
03/31/97 $ 7,982.71 6,302.64 $10,911.72 9,644.52
04/30/97 $ 8,454.13 7,219.58 $11,232.94 9,490.70
05/30/97 $ 8,894.13 7,121.51 $12,847.38 9,858.79
06/30/97 $ 9,009.36 7,205.57 $13,229.53 10,194.22
07/31/97 $ 9,679.83 8,320.23 $14,247.13 10,267.52
08/29/97 $ 9,795.06 9,643.50 $12,305.41 8,743.24
09/30/97 $ 9,239.83 7,651.59 $13,101.14 8,472.18
10/31/97 $ 7,018.92 6,274.62 $ 9,248.51 6,396.05
11/28/97 $ 6,337.98 4,963.03 $ 9,164.19 6,016.59
12/31/97 $ 6,125.32 4,863.39 $ 9,334.68 5,726.52
01/30/98 $ 4,784.09 3,457.62 $ 8,054.62 5,343.67
02/27/98 $ 6,114.76 4,755.97 $ 9,994.49 6,498.68
03/31/98 $ 6,114.76 4,464.86 $10,027.56 6,331.44
04/30/98 $ 5,618.40 3,914.53 $ 9,039.49 5,706.62
05/29/98 $ 4,984.74 3,614.85 $ 7,777.96 4,852.63
06/30/98 $ 4,319.41 3,234.22 $ 7,437.18 4,360.20
07/31/98 $ 3,654.07 2,512.65 $ 6,908.84 4,277.05
08/31/98 $ 3,009.85 1,952.21 $ 6,333.27 3,593.09
09/30/98 $ 3,654.07 2,601.39 $ 6,862.93 3,935.15
10/30/98 $ 4,150.43 2,583.48 $ 8,840.36 4,889.98
11/30/98 $ 4,277.16 2,621.62 $ 9,055.72 5,284.25
12/31/98 $ 4,087.07 2,388.11 $ 8,747.77 5,316.49
01/29/99 $ 3,576.18 2,084.53 $ 8,276.21 5,175.43
02/26/99 $ 3,554.90 2,102.44 $ 8,582.29 5,174.13
03/31/99 $ 3,938.06 2,204.41 $ 9,525.71 5,680.92
04/30/99 $ 4,757.60 2,833.35 $11,607.19 6,876.87
05/28/99 $ 4,640.52 2,755.51 $10,574.65 6,719.63
06/30/99 $ 5,939.02 3,771.31 $11,780.37 7,900.41
07/30/99 $ 5,641.00 3,620.30 $11,479.79 7,504.92
08/31/99 $ 5,672.93 3,674.79 $11,737.40 7,827.77
09/30/99 $ 5,374.92 3,489.53 $11,084.89 7,198.24
10/29/99 $ 5,321.70 3,484.08 $11,540.81 7,558.14
11/30/99 $ 5,896.44 4,462.52 $13,386.58 8,132.76
12/31/99 $ 6,364.75 4,901.53 $14,766.32 8,784.91
--------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
DECEMBER 31, 1999
--------------------------------------------------------------------
INCEPTION FIVE YEAR ONE YEAR SIX MONTH
-------- --------- -------- ---------
China Region
Opportunity
Fund (Inception
2/10/94) (7.38)% (2.41)% 55.73% 7.17%
Hang Seng 100
Index 6.81% 15.67% 68.80% 25.35%
Morgan Stanley
Capital Far
East ex Japan
Index (2.17)% (1.48)% 65.24% 11.20%
International
Finance
Corporation
China Index (11.35)% (4.25)% 105.25% 29.97%
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 value. 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 Morgan Stanley Capital Far East ex Japan Index is
one index in a series representing both the developed and the
emerging markets for a particular region. 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.
23
<PAGE>
- --------------------------------------------------------------------------------
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
The Hang Seng Index surged by 27%, while the Shanghai and Shenzhen B-share
markets lagged the Hong Kong market, declining 35% and 28%, respectively. In
comparison, the S&P 500 rose 21% for the six months ended December 31, 1999.
Although interest rate and exchange rate uncertainties added to the volatility
of the markets, the economy and politics were the driving factors. Asian
economies recovered significantly from the financial crisis that began in 1997.
By comparison, China's GDP grew by 7.1% and South Korea's economy grew
approximately 10% in 1999. Currencies throughout the region have generally
stabilized. It was a tough year in regard to the relationship between China and
the United States. NATO's unintentional bombing of the Chinese Embassy in
Belgrade not only hit the financial markets, but also delayed the negotiations
between the U.S. and China on membership to the World Trade Organization (WTO).
Fortunately, the leadership from both countries realized the tremendous benefit
both would enjoy if China were brought into WTO. In November, a landmark pact
was finally signed after years of hard work, ending the century on a very
positive note. We expect China to be an official member of WTO around the middle
of 2000. These developments indicate China will continue to move toward a
free-market system and to open its huge markets to foreign companies and
investors.
INVESTMENT HIGHLIGHTS
Encouraged by strong Nasdaq performance, investors began a love affair with
technology stocks--especially telecommunications and the Internet. The property
sector underperformed the general market, reflecting the change of government
policies in Hong Kong. Hong Kong's economy will no longer rely heavily on the
property sector. Instead, technology is expected to be an important fuel for
future growth. During the last six months of the year, we decreased our holdings
in Chinese shares and the property sector. We significantly increased our
exposure to the technology sector, especially telecommunications. We believe
that these strategic adjustments will continue to benefit the fund.
CURRENT OUTLOOK
We remain bullish on China and Hong Kong. The size of China, the determination
of its people to reform and its high-quality labor force will enable its economy
to enjoy sustainable growth. Due to Hong Kong's strategic position and excellent
political, legal and financial systems, we believe this dynamic city can benefit
the most from the economic growth
24
<PAGE>
of China. The Heritage Foundation and the Wall Street Journal rated Hong Kong as
the most free economy in the world for the fifth year in a row, keeping the
country ahead of Singapore and the U.S. We will continue to invest heavily in
Hong Kong and increase our investment in other Asian markets that we believe
have substantial upward potential.
We will continue to explore investment opportunities in the technology sectors
in China, Hong Kong and other Asian countries. The technology sector in Asia is
in the early stages of development, compared to its counterpart in the U.S. We
believe the growth potential is huge. Due to their unique culture, Asian people
are expected to embrace new technology quickly. The popularity of mobile phones
in China, Hong Kong and South Korea is a good example. For the same reasons,
many high-tech companies from the U.S., such as Microsoft, IBM, and Cisco, are
aggressively expanding into the markets of China and Hong Kong.
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------
HSBC HOLDINGS LTD ......................................... 12.46%
BANKING & FINANCIAL SERVICES
HUTCHISON WHAMPOA ......................................... 5.91%
CONGLOMERATES
LI & FUNG LTD ............................................. 5.88%
APPAREL
CHINA TELECOM LTD ......................................... 5.53%
TELECOMMUNICATIONS
CHEUNG KONG HOLDINGS LTD .................................. 3.38%
CONSTRUCTION
GUANGDONG KELON ELECTRONICS HOLDINGS ...................... 2.94%
HOUSEHOLD APPLIANCES
CHINA INTERNATIONAL MARINE CONTAINER ...................... 2.40%
WATER TRANSPORTATION & SERVICES
ASM PACIFIC TECHNOLOGY LTD ................................ 2.34%
ELECTRONIC EQUIPMENT
FOUNDER HONG KONG LTD ..................................... 2.32%
COMPUTERS & OFFICE EQUIPMENT
YIZHENG CHEMICAL FIBRE .................................... 2.22%
CHEMICALS & ALLIED PRODUCTS
25
<PAGE>
- --------------------------------------------------------------------------------
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
------------------------------------------
BANKING & FINANCIAL SERVICES .............................. 16.23%
CONGLOMERATES ............................................. 12.11%
TELECOMMUNICATIONS ........................................ 9.02%
APPAREL ................................................... 7.95%
ELECTRONIC EQUIPMENT ...................................... 7.36%
PORTFOLIO PROFILE DECEMBER 31, 1999
---------------------------------------------------------------------
COUNTRY DISTRIBUTION % OF INVESTMENTS
-------------------- ----------------
Hong Kong ................................................. 67.32%
Republic of China ......................................... 17.47%
Taiwan .................................................... 3.53%
U.S ....................................................... 2.11%
Republic of Korea ......................................... 2.03%
Other Foreign ............................................. 2.84%
U.S. Repurchase Agreements ................................ 4.70%
Number of Stocks .......................................... 101
26
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The Global Resources 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 exploration, production and processing of petroleum,
natural gas, industrial commodities, metals, minerals, and paper and forest
products around the globe.
PERFORMANCE
GLOBAL RESOURCES FUND
---------------------
[Linear graph plotted from the data points in the following table.)
MICROPAL US: DOW JONES
EQUITY BASIC
GLOBAL NATURAL MATERIALS S&P
RESOURCES RESOURCES AND ENERGY 500
DATE FUND FUND INDEX INDEX
-------- ---------- ---------- ---------- ----------
12/29/89 $10,000.00 $10,000.00 $10,000.00
01/31/90 $ 9,729.73 $ 9,581.61 $ 9,329.03
02/28/90 $ 9,459.46 $ 9,762.43 $ 9,448.98
03/30/90 $ 9,189.19 $ 9,861.37 $ 9,699.17
04/30/90 $ 8,243.24 $ 9,354.28 $ 9,457.56
05/30/90 $ 8,783.78 $10,098.38 $10,377.85
06/29/90 $ 8,513.51 $ 9,880.88 $10,307.89
07/31/90 $ 9,189.19 $10,374.32 $10,274.95
08/31/90 $ 9,054.05 $10,028.99 $ 9,347.34
09/28/90 $ 8,918.92 $ 9,844.35 $ 8,893.10
10/31/90 $ 8,121.62 $ 9,255.09 $ 8,855.50
11/30/90 $ 8,135.14 $ 9,342.41 $ 9,426.79
12/31/90 $ 8,405.41 $ 9,247.95 $ 9,689.13
01/31/91 $ 7,850.88 $ 9,082.68 $10,110.03
02/28/91 $ 8,215.70 $ 9,862.03 $10,832.16
03/28/91 $ 8,128.14 $ 9,736.39 $11,094.21
04/30/91 $ 8,215.70 $ 9,776.13 $11,120.59
05/31/91 $ 8,653.48 $10,015.54 $11,598.68
06/28/91 $ 8,405.41 $ 9,533.82 $11,067.71
07/31/91 $ 8,770.22 $ 9,910.03 $11,583.13
08/30/91 $ 8,697.26 $10,057.98 $11,856.75
09/30/91 $ 8,682.67 $ 9,871.20 $11,658.25
10/31/91 $ 8,930.74 $10,090.89 $11,814.65
11/29/91 $ 8,638.89 $ 9,457.50 $11,339.90
12/31/91 $ 8,828.59 $ 9,578.91 $12,634.62
01/31/92 $ 8,874.10 $ 9,524.09 $12,399.46
02/28/92 $ 8,965.12 $ 9,588.29 $12,559.97
03/31/92 $ 8,722.41 $ 9,250.09 $12,315.99
04/30/92 $ 8,843.76 $ 9,577.74 $12,677.21
05/29/92 $ 9,056.14 $ 9,882.00 $12,739.20
06/30/92 $ 8,767.92 $ 9,550.84 $12,549.74
07/31/92 $ 8,874.10 $ 9,982.07 $13,062.01
08/31/92 $ 8,616.22 $ 9,962.45 $12,795.18
09/30/92 $ 8,601.05 $10,046.26 $12,945.59
10/30/92 $ 8,494.87 $ 9,854.03 $12,990.02
11/30/92 $ 8,464.53 $ 9,728.24 $13,431.12
12/31/92 $ 8,585.88 $ 9,839.77 $10,000.00 $13,595.90
01/29/93 $ 8,402.56 $10,024.71 $10,181.08 $13,709.45
02/26/93 $ 8,555.33 $10,523.39 $10,641.92 $13,896.23
03/31/93 $ 8,937.26 $11,091.05 $10,930.74 $14,189.24
04/30/93 $ 9,090.04 $11,360.42 $11,143.74 $13,846.28
05/28/93 $ 9,212.26 $11,767.80 $11,342.02 $14,215.75
06/30/93 $ 9,334.48 $11,851.76 $11,185.46 $14,257.25
07/30/93 $ 9,426.14 $11,885.85 $11,268.36 $14,199.84
08/31/93 $ 9,731.69 $12,403.78 $11,691.95 $14,737.44
09/30/93 $ 9,685.85 $12,080.16 $11,600.02 $14,624.42
10/29/93 $10,113.62 $12,248.80 $11,516.40 $14,926.74
11/30/93 $ 9,655.30 $11,573.89 $11,200.90 $14,784.47
12/31/93 $10,174.73 $11,849.16 $11,382.83 $14,963.21
01/31/94 $10,659.99 $12,391.81 $12,111.06 $15,471.44
02/28/94 $10,284.30 $12,098.30 $11,793.65 $15,051.89
03/31/94 $ 9,689.47 $11,448.91 $11,321.59 $14,396.93
04/29/94 $ 9,470.33 $11,727.60 $11,581.83 $14,581.37
05/31/94 $ 9,470.33 $11,926.45 $11,837.63 $14,819.74
06/30/94 $ 8,985.07 $11,859.20 $11,556.99 $14,457.08
07/29/94 $ 9,251.18 $12,230.97 $12,052.13 $14,931.47
08/31/94 $ 9,532.94 $12,354.31 $12,305.80 $15,542.23
09/30/94 $ 9,908.62 $12,417.95 $12,143.22 $15,162.48
10/31/94 $ 9,752.09 $12,496.36 $12,468.09 $15,502.64
11/30/94 $ 9,188.56 $11,595.54 $11,711.24 $14,938.75
12/30/94 $ 9,188.56 $11,561.05 $11,812.96 $15,160.05
01/31/95 $ 8,709.30 $11,120.96 $11,732.27 $15,552.93
02/28/95 $ 8,808.46 $11,514.99 $12,400.29 $16,158.46
03/31/95 $ 9,056.35 $12,086.94 $12,968.09 $16,634.50
04/28/95 $ 9,304.25 $12,542.87 $13,269.80 $17,123.96
05/31/95 $ 9,419.93 $12,761.75 $13,767.64 $17,807.34
06/30/95 $ 9,519.09 $12,761.24 $13,710.32 $18,220.23
07/31/95 $ 9,783.51 $13,168.16 $14,103.06 $18,824.18
08/31/95 $ 9,932.24 $13,247.03 $13,921.33 $18,871.17
09/29/95 $ 9,899.19 $13,208.46 $14,083.60 $19,667.12
10/31/95 $ 9,452.98 $12,555.25 $13,694.25 $19,596.85
11/30/95 $ 9,552.14 $13,136.11 $14,452.23 $20,456.15
12/29/95 $10,014.87 $13,768.58 $14,926.06 $20,850.19
01/31/96 $10,383.31 $14,264.00 $15,313.82 $21,559.01
02/29/96 $10,500.55 $14,529.29 $15,401.84 $21,759.57
03/29/96 $11,086.70 $15,256.01 $16,311.93 $21,969.07
04/30/96 $11,739.84 $16,096.96 $16,636.56 $22,292.67
05/31/96 $11,924.06 $16,349.82 $16,552.89 $22,866.61
06/28/96 $11,689.60 $16,065.94 $16,379.29 $22,953.78
07/31/96 $11,187.18 $15,357.96 $15,763.99 $21,940.25
08/30/96 $11,589.12 $16,300.30 $16,259.15 $22,403.74
09/30/96 $12,058.04 $16,661.98 $16,895.85 $23,663.56
10/31/96 $12,627.45 $17,328.43 $17,604.54 $24,315.96
11/29/96 $13,297.34 $18,062.80 $18,458.65 $26,152.33
12/31/96 $13,431.32 $18,112.37 $18,380.24 $25,634.27
01/31/97 $13,924.56 $18,490.46 $19,227.07 $27,234.92
02/28/97 $13,165.73 $17,825.18 $18,731.70 $27,448.73
03/31/97 $13,070.87 $17,454.83 $19,204.28 $26,323.01
04/30/97 $12,729.40 $17,219.86 $19,432.75 $27,893.07
05/30/97 $13,943.53 $18,650.79 $20,701.68 $29,590.03
06/30/97 $13,924.56 $18,686.71 $21,250.42 $30,914.93
07/31/97 $15,081.78 $19,785.20 $22,908.76 $33,373.41
08/29/97 $15,916.49 $20,120.03 $22,404.03 $31,505.17
09/30/97 $17,320.33 $21,429.79 $23,444.38 $33,229.63
10/31/97 $16,409.73 $20,247.57 $22,655.39 $32,121.10
11/28/97 $13,772.79 $18,613.72 $22,330.60 $33,606.83
12/31/97 $13,061.39 $18,447.58 $22,128.63 $34,183.57
01/30/98 $11,510.62 $17,741.14 $21,218.38 $34,561.29
02/27/98 $11,772.72 $18,411.68 $22,695.43 $37,052.55
03/31/98 $11,750.88 $19,020.91 $23,660.96 $38,948.44
04/30/98 $11,445.10 $19,579.45 $24,766.29 $39,340.10
05/29/98 $10,418.53 $18,066.08 $23,852.30 $38,664.83
06/30/98 $ 9,763.28 $17,019.84 $23,366.90 $40,234.22
07/31/98 $ 8,998.82 $15,282.32 $21,850.81 $39,806.88
08/31/98 $ 7,557.26 $12,424.96 $19,401.14 $34,057.55
09/30/98 $ 8,365.40 $14,405.07 $21,736.38 $36,239.41
10/30/98 $ 8,671.19 $14,867.43 $22,224.25 $39,184.53
11/30/98 $ 8,430.93 $14,274.79 $22,477.44 $41,558.46
12/31/98 $ 8,030.54 $13,989.28 $22,116.71 $43,951.69
01/29/99 $ 7,633.69 $13,335.42 $21,242.55 $45,788.91
02/26/99 $ 7,563.65 $12,938.54 $20,769.32 $44,366.05
03/31/99 $ 8,310.68 $14,909.90 $23,135.72 $46,140.61
04/30/99 $ 9,688.01 $17,409.38 $26,192.98 $47,927.38
05/28/99 $ 9,221.12 $16,803.32 $26,886.91 $46,797.24
06/30/99 $ 9,361.19 $17,633.36 $26,354.22 $49,392.29
07/30/99 $ 9,384.53 $17,888.14 $27,044.91 $47,852.33
08/31/99 $ 9,267.81 $18,165.88 $27,277.74 $47,615.42
09/30/99 $ 8,940.98 $17,748.34 $26,055.32 $46,311.70
10/29/99 $ 8,754.23 $17,056.48 $25,440.32 $49,241.08
11/30/99 $ 8,777.57 $16,830.30 $26,015.20 $50,241.99
12/31/99 $ 9,197.77 $17,894.01 $25,906.71 $53,199.30
--------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
DECEMBER 31, 1999
--------------------------------------------------------------------
TEN YEAR FIVE YEAR ONE YEAR SIX MONTH
-------- --------- -------- ---------
Global Resources
Fund (0.83)% 0.02% 14.53% (1.75)%
S&P 500 Index 18.19% 28.54% 21.04% 7.71%
Dow Jones Basic
Materials
and Energy Index n/a 17.01% 17.14% (1.70)%
Micropal US: Equity
Natural Resources
Fund Index 5.99% 9.13% 27.91% 1.48%
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 value. 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.
27
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
SIX MONTHS IN REVIEW
A positive outlook for global growth fueled basic materials' rise in the latter
half of 1999. The strength shown by the Dow Jones Basic Materials Index over the
early part of the summer continued through August. A 25 basis point hike in
interest rates put a damper on the sector, and it quickly declined to a low
value of 704 points toward the end of September. The index then traded in a
tight range in November. December saw strong gains. The Dow Jones Basic
Materials Index gained nearly 10% during the month, hitting its highs in the
last few days of the year. This rise was attributed to investors seeking a safe
haven for their money and hedging against potential Y2K issues.
The strongest gains were made by the aluminum and metals and mining sectors.
Strong price increases in the underlying metals, as a result of rising demand
and tightening supply, contributed to large earnings growth expectations in both
sectors. Other sectors also performed well. Low capacity growth rates and an
anticipated surge in demand lifted the paper and forest products sector. The
push by investors into the chemical companies during December lifted that
sector's performance and ultimately allowed the index to surpass the levels set
in the summer.
For the six months ended December 31, 1999, crude oil prices rose from a low of
$18.67 per barrel in early July to close at $25.50 per barrel, a gain of more
than 36%. Despite strength in the fundamentals of crude oil and continued
production cuts from OPEC, money flow into the energy sector remained low. The
market is still valuing many of the energy stocks at a discount to their
historical valuation despite oil rising 150% from its lows. In order to benefit
from the rise in energy prices, our exposure remains in oil and gas stocks that
have higher cash flow and earnings leveraged to the underlying commodities.
International and domestic oil companies had the strongest gains in the energy
sector, followed closely by natural gas companies. Improving operating margins
and cash flow for oil companies provided increased return on capital employed.
We remain underweighted in the refining stocks because we believe they will
continue to struggle with low capacity utilization, increasing feed stock prices
and shrinking margins. For natural gas companies, a warmer than expected winter
has restricted natural gas demand for most of the last six months. The peak
demand for natural gas came in the warmer months, due to higher electricity
usage to run air conditioners.
28
<PAGE>
- --------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
CURRENT OUTLOOK
We believe the upcoming year will be strong in the basic materials and energy
sectors. Improving economies in Asia and Europe, along with the continued
strength of the U.S. economy, should drive commodity consumption much higher.
The last few years of low demand has meant that both production capacity and
stockpiles are low, and the anticipated rising demand should drive commodity
prices higher. This increase will improve earnings for all companies. The S&P
earnings outlook for 2000 is dominated by three sectors. Energy and materials
are in the top two positions, with earnings expected to increase 37% and 34%,
respectively.
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------
EXXON MOBIL CORP ........................................... 20.82%
PETROLEUM PRODUCTION & REFINING
CHEVRON CORP ............................................... 4.53%
PETROLEUM PRODUCTION & REFINING
SCHLUMBERGER LTD ........................................... 4.17%
OIL & GAS EXTRACTION
E.I. DU PONT DE NEMOURS & CO ............................... 4.02%
CHEMICALS & ALLIED PRODUCTS
ENRON CORP ................................................. 3.94%
NATURAL GAS PRODUCTION & DISTRIBUTION
ALCOA, INC ................................................. 3.25%
METAL & MINERAL MINING
TEXACO, INC ................................................ 2.77%
PETROLEUM PRODUCTION & REFINING
DE BEERS CONSOLIDATED MINES LTD ............................ 2.38%
DIVERSIFIED MINING
PHILLIPS PETROLEUM CO ...................................... 2.30%
OIL & GAS EXTRACTION
FREEPORT MCMORAN COPPER & GOLD, INC ........................ 2.21%
METAL & MINERAL MINING
29
<PAGE>
- --------------------------------------------------------------------
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
-------------------------------------------
PETROLEUM PRODUCTION & REFINING ........................... 35.36%
OIL & GAS EXTRACTION ...................................... 17.40%
METAL & MINERAL MINING .................................... 11.07%
CHEMICALS & ALLIED PRODUCTS ............................... 8.85%
PAPER PRODUCTS ............................................ 6.53%
PORTFOLIO PROFILE DECEMBER 31, 1999
---------------------------------------------------------------------
COUNTRY DISTRIBUTION % OF INVESTMENTS
-------------------- ----------------
U.S ....................................................... 77.64%
Canada .................................................... 7.18%
Netherlands ............................................... 6.02%
South Africa .............................................. 2.38%
United Kingdom ............................................ 2.21%
Other Foreign ............................................. 3.87%
U.S. Repurchase Agreements ................................ 0.70%
Number of Stocks .......................................... 93
30
<PAGE>
- ----------------------------------------------------------------------------
GOLD FUNDS
- ----------------------------------------------------------------------------
MANAGEMENT TEAM'S PERSPECTIVE
INTRODUCTION
The World Gold Fund focuses on all kinds of gold and precious metals companies,
including the smaller production and 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 the larger companies producing gold and
precious metals.
PERFORMANCE
WORLD GOLD FUND
---------------
[Linear graph plotted from the data points in the following table.)
TORONTO
STOCK PHILADELPHIA
EXCHANGE STOCK
GOLD AND EXCHANGE
WORLD PRECIOUS GOLD AND
GOLD MINERALS SILVER S&P 500
DATE FUND INDEX INDEX INDEX
-------- ---------- ---------- ---------- ----------
12/29/89 $10,000.00 $10,000.00 $10,000.00 $10,000.00
01/31/90 $10,214.29 $10,546.65 $10,863.00 $ 9,329.03
02/28/90 $ 9,714.29 $ 9,741.01 $10,065.87 $ 9,448.98
03/30/90 $ 9,071.43 $ 9,407.76 $ 9,397.98 $ 9,699.17
04/30/90 $ 7,928.57 $ 8,176.10 $ 8,294.00 $ 9,457.56
05/30/90 $ 8,285.71 $ 8,864.98 $ 8,952.72 $10,377.85
06/29/90 $ 7,714.29 $ 8,406.31 $ 8,459.10 $10,307.89
07/31/90 $ 8,214.29 $ 9,060.03 $ 9,084.47 $10,274.95
08/31/90 $ 8,071.43 $ 9,042.68 $ 9,009.42 $ 9,347.34
09/28/90 $ 8,000.00 $ 9,010.44 $ 9,033.60 $ 8,893.10
10/31/90 $ 6,664.29 $ 7,557.80 $ 7,486.03 $ 8,855.50
11/30/90 $ 6,635.71 $ 7,363.50 $ 7,107.48 $ 9,426.79
12/31/90 $ 7,214.29 $ 8,059.19 $ 8,091.39 $ 9,689.13
01/31/91 $ 6,221.43 $ 6,758.89 $ 6,696.41 $10,110.03
02/28/91 $ 6,571.43 $ 7,373.44 $ 7,170.85 $10,832.16
03/28/91 $ 6,528.57 $ 7,325.35 $ 7,028.27 $11,094.21
04/30/91 $ 6,392.86 $ 6,940.16 $ 6,718.09 $11,120.59
05/31/91 $ 6,678.57 $ 7,169.50 $ 6,864.00 $11,598.68
06/28/91 $ 7,171.43 $ 7,584.06 $ 7,517.72 $11,067.71
07/31/91 $ 7,192.86 $ 7,530.07 $ 7,333.44 $11,583.13
08/30/91 $ 6,478.57 $ 6,729.34 $ 6,329.53 $11,856.75
09/30/91 $ 6,578.57 $ 6,621.23 $ 6,573.00 $11,658.25
10/31/91 $ 7,242.86 $ 7,273.29 $ 6,912.37 $11,814.65
11/29/91 $ 7,285.71 $ 7,334.97 $ 7,014.93 $11,339.90
12/31/91 $ 6,971.43 $ 7,032.42 $ 6,736.43 $12,634.62
01/31/92 $ 7,142.86 $ 6,968.17 $ 6,964.90 $12,399.46
02/28/92 $ 7,042.86 $ 6,772.21 $ 6,787.29 $12,559.97
03/31/92 $ 6,550.00 $ 6,258.13 $ 6,006.84 $12,315.99
04/30/92 $ 5,928.57 $ 6,010.11 $ 5,830.90 $12,677.21
05/29/92 $ 6,392.86 $ 6,501.48 $ 6,255.32 $12,739.20
06/30/92 $ 6,785.71 $ 6,756.05 $ 6,547.15 $12,549.74
07/31/92 $ 7,171.43 $ 7,402.64 $ 6,889.85 $13,062.01
08/31/92 $ 7,000.00 $ 7,401.08 $ 6,576.34 $12,795.18
09/30/92 $ 7,000.00 $ 7,276.40 $ 6,708.08 $12,945.59
10/30/92 $ 6,714.29 $ 7,160.33 $ 6,304.51 $12,990.02
11/30/92 $ 6,185.71 $ 6,433.60 $ 5,487.37 $13,431.12
12/31/92 $ 6,642.86 $ 6,884.05 $ 5,945.13 $13,595.90
01/29/93 $ 6,328.57 $ 6,775.36 $ 5,964.31 $13,709.45
02/26/93 $ 6,842.86 $ 7,677.63 $ 6,335.36 $13,896.23
03/31/93 $ 7,635.71 $ 8,603.58 $ 7,239.22 $14,189.24
04/30/93 $ 8,750.00 $10,021.31 $ 8,238.97 $13,846.28
05/28/93 $ 9,928.57 $11,235.71 $ 9,264.57 $14,215.75
06/30/93 $10,421.43 $12,164.33 $ 9,709.00 $14,257.25
07/30/93 $12,392.86 $13,173.42 $10,747.94 $14,199.84
08/31/93 $11,407.14 $12,154.57 $ 9,828.23 $14,737.44
09/30/93 $ 9,978.57 $10,633.28 $ 8,680.90 $14,624.42
10/29/93 $11,621.43 $12,720.13 $10,293.50 $14,926.74
11/30/93 $11,407.14 $12,566.16 $ 9,898.27 $14,784.47
12/31/93 $12,607.14 $13,575.17 $10,998.92 $14,963.21
01/31/94 $13,042.86 $13,704.16 $10,993.08 $15,471.44
02/28/94 $12,364.29 $12,809.06 $10,705.41 $15,051.89
03/31/94 $12,385.71 $13,111.91 $11,148.17 $14,396.93
04/29/94 $11,392.86 $11,589.19 $ 9,541.40 $14,581.37
05/31/94 $11,935.71 $12,452.87 $10,032.52 $14,819.74
06/30/94 $11,164.29 $11,642.22 $ 9,609.77 $14,457.08
07/29/94 $11,178.57 $11,581.47 $ 9,317.94 $14,931.47
08/31/94 $11,692.86 $12,160.15 $ 9,882.43 $15,542.23
09/30/94 $12,392.86 $13,783.90 $11,025.60 $15,162.48
10/31/94 $11,714.29 $12,457.63 $ 9,789.88 $15,502.64
11/30/94 $10,235.71 $10,777.76 $ 8,563.33 $14,938.75
12/30/94 $10,471.43 $11,561.67 $ 9,116.15 $15,160.05
01/31/95 $ 9,369.17 $10,124.89 $ 8,119.74 $15,552.93
02/28/95 $ 9,569.58 $10,842.49 $ 8,657.55 $16,158.46
03/31/95 $10,671.84 $12,303.83 $10,170.10 $16,634.50
04/28/95 $10,965.30 $12,346.11 $ 9,749.85 $17,123.96
05/31/95 $10,943.82 $12,879.72 $10,005.84 $17,807.34
06/30/95 $11,316.01 $12,979.93 $10,021.68 $18,220.23
07/31/95 $11,809.88 $12,957.31 $ 9,897.44 $18,824.18
08/31/95 $12,131.97 $13,205.21 $10,227.63 $18,871.17
09/29/95 $12,124.81 $13,348.89 $10,356.04 $19,667.12
10/31/95 $10,879.41 $11,733.64 $ 8,936.88 $19,596.85
11/30/95 $11,809.88 $13,025.81 $10,098.39 $20,456.15
12/29/95 $12,139.13 $13,011.72 $10,040.86 $20,850.19
01/31/96 $14,100.28 $14,936.31 $11,761.03 $21,559.01
02/29/96 $14,479.63 $15,487.89 $12,012.01 $21,759.57
03/29/96 $15,252.64 $15,612.29 $11,992.83 $21,969.07
04/30/96 $15,725.04 $15,476.54 $11,958.64 $22,292.67
05/31/96 $17,328.32 $16,448.00 $12,414.74 $22,866.61
06/28/96 $15,202.54 $13,843.11 $10,319.35 $22,953.78
07/31/96 $14,730.14 $13,912.82 $10,368.55 $21,940.25
08/30/96 $16,075.75 $14,662.09 $10,385.22 $22,403.74
09/30/96 $15,603.36 $13,886.84 $ 9,603.94 $23,663.56
10/31/96 $15,195.38 $14,105.02 $ 9,638.96 $24,315.96
11/29/96 $14,952.03 $14,535.66 $10,021.68 $26,152.33
12/31/96 $14,508.26 $14,133.15 $ 9,734.85 $25,634.27
01/31/97 $13,698.04 $13,522.83 $ 9,188.69 $27,234.92
02/28/97 $15,091.32 $14,476.52 $10,210.96 $27,448.73
03/31/97 $13,289.14 $11,743.16 $ 8,681.73 $26,323.01
04/30/97 $12,637.94 $10,794.02 $ 7,826.23 $27,893.07
05/30/97 $13,319.43 $11,688.12 $ 8,697.57 $29,590.03
06/30/97 $12,085.17 $10,354.09 $ 7,971.32 $30,914.93
07/31/97 $11,502.11 $10,314.64 $ 8,164.76 $33,373.41
08/29/97 $11,774.71 $10,164.77 $ 8,243.98 $31,505.17
09/30/97 $12,274.47 $11,273.52 $ 9,130.33 $33,229.63
10/31/97 $10,214.85 $ 9,229.05 $ 7,330.11 $32,121.10
11/28/97 $ 8,102.21 $ 6,877.90 $ 5,905.11 $33,606.83
12/31/97 $ 8,548.21 $ 7,695.00 $ 6,186.11 $34,183.57
01/30/98 $ 9,284.20 $ 8,044.31 $ 6,251.15 $34,561.29
02/27/98 $ 8,793.54 $ 7,860.70 $ 6,291.17 $37,052.55
03/31/98 $ 9,391.53 $ 8,430.67 $ 6,809.81 $38,948.44
04/30/98 $ 9,782.53 $ 9,038.34 $ 7,331.78 $39,340.10
05/29/98 $ 8,394.88 $ 7,731.40 $ 6,229.47 $38,664.83
06/30/98 $ 7,559.23 $ 7,162.78 $ 5,980.16 $40,234.22
07/31/98 $ 7,030.23 $ 6,200.98 $ 5,246.39 $39,806.88
08/31/98 $ 5,496.92 $ 4,689.26 $ 4,076.54 $34,057.55
09/30/98 $ 7,589.89 $ 7,432.16 $ 6,252.81 $36,239.41
10/30/98 $ 7,490.23 $ 7,530.78 $ 6,286.17 $39,184.53
11/30/98 $ 6,991.90 $ 7,054.75 $ 5,916.78 $41,558.46
12/31/98 $ 7,200.43 $ 6,700.61 $ 5,417.33 $43,951.69
01/29/99 $ 6,893.38 $ 6,518.95 $ 5,274.74 $45,788.91
02/26/99 $ 6,747.53 $ 6,132.73 $ 5,049.61 $44,366.05
03/31/99 $ 6,609.35 $ 5,972.64 $ 4,982.91 $46,140.61
04/30/99 $ 7,400.02 $ 7,078.15 $ 6,121.90 $47,927.38
05/28/99 $ 6,048.98 $ 5,857.38 $ 5,075.46 $46,797.24
06/30/99 $ 5,979.89 $ 6,218.20 $ 5,580.76 $49,392.29
07/30/99 $ 5,642.13 $ 5,867.83 $ 5,242.22 $47,852.33
08/31/99 $ 5,880.10 $ 6,065.32 $ 5,614.94 $47,615.42
09/30/99 $ 7,407.69 $ 7,617.34 $ 6,692.24 $46,311.70
10/29/99 $ 6,647.73 $ 6,552.10 $ 5,799.22 $49,241.08
11/30/99 $ 6,356.03 $ 6,174.14 $ 5,589.93 $50,241.99
12/31/99 $ 6,286.94 $ 5,887.00 $ 5,667.47 $53,199.30
--------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
DECEMBER 31, 1999
--------------------------------------------------------------------
TEN YEAR FIVE YEAR ONE YEAR SIX MONTH
-------- --------- -------- ---------
World Gold Fund (4.54)% (9.70)% (12.69)% 5.13%
S&P 500 Index 18.19% 28.54% 21.04% 7.71%
Toronto Stock
Exchange Gold
& Precious
Minerals Index (5.16)% (12.63)% (12.14)% (5.33)%
Philadelphia Stock
Exchange Gold &
Silver Index (5.52)% (9.07)% 4.62% 1.55%
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 value. 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.
31
<PAGE>
- ----------------------------------------------------------------------------
GOLD FUNDS
- ----------------------------------------------------------------------------
GOLD SHARES FUND
[Linear graph plotted from the data points in the following table.)
FINANCIAL
TIMES
GOLD JOHANNESBURG GOLD MINES S&P 500
DATE SHARES FUND ALL GOLD INDEX INDEX INDEX
-------- ----------- -------------- ------------ ----------
12/29/89 $10,000.00 $10,000.00 $10,000.00
01/31/90 $10,960.45 $10,651.57 $9,329.03
02/28/90 $9,435.03 $9,375.61 $9,448.98
03/30/90 $8,775.89 $9,250.46 $9,699.17
04/30/90 $7,834.27 $8,160.33 $9,457.56
05/30/90 $8,022.60 $7,646.53 $10,377.85
06/29/90 $7,325.80 $7,159.37 $10,307.89
07/31/90 $7,747.71 $7,577.42 $10,274.95
08/31/90 $7,651.82 $8,172.15 $9,347.34
09/28/90 $7,287.45 $7,801.76 $8,893.10
10/31/90 $6,788.83 $7,019.38 $8,855.50
11/30/90 $6,520.35 $6,277.82 $9,426.79
12/31/90 $6,577.88 $5,863.96 $9,689.13
01/31/91 $5,851.37 $5,347.40 $10,110.03
02/28/91 $6,342.25 $5,189.45 $10,832.16
03/28/91 $5,812.10 $4,448.07 $11,094.21
04/30/91 $5,949.54 $4,695.37 $11,120.59
05/31/91 $6,676.06 $5,456.17 $11,598.68
06/28/91 $7,049.13 $5,942.16 $11,067.71
07/31/91 $6,812.18 $5,774.66 $11,583.13
08/30/91 $5,627.46 $4,682.79 $11,856.75
09/30/91 $5,963.13 $5,040.45 $11,658.25
10/31/91 $6,160.58 $5,191.89 $11,814.65
11/29/91 $6,437.02 $5,499.06 $11,339.90
12/31/91 $5,548.47 $5,147.40 $12,634.62
01/31/92 $5,528.30 $5,689.18 $10,000.00 $12,399.46
02/28/92 $4,983.54 $5,398.72 $9,504.15 $12,559.97
03/31/92 $4,902.83 $4,922.24 $8,900.85 $12,315.99
04/30/92 $4,559.84 $4,384.40 $8,398.20 $12,677.21
05/29/92 $4,862.48 $4,815.21 $8,899.56 $12,739.20
06/30/92 $4,479.13 $4,936.19 $9,123.62 $12,549.74
07/31/92 $4,255.18 $4,824.98 $9,367.35 $13,062.01
08/31/92 $3,888.70 $4,262.48 $8,818.10 $12,795.18
09/30/92 $3,501.87 $3,986.90 $8,475.29 $12,945.59
10/30/92 $3,013.23 $3,443.98 $7,710.15 $12,990.02
11/30/92 $2,809.64 $3,557.70 $6,963.90 $13,431.12
12/31/92 $2,728.20 $3,266.15 $7,158.25 $13,595.90
01/29/93 $2,873.98 $3,664.59 $7,278.29 $13,709.45
02/26/93 $3,123.89 $3,861.31 $8,111.58 $13,896.23
03/31/93 $3,707.02 $4,737.55 $9,500.14 $14,189.24
04/30/93 $4,310.97 $5,767.59 $11,110.67 $13,846.28
05/28/93 $5,144.01 $7,239.42 $13,158.72 $14,215.75
06/30/93 $5,227.31 $7,138.71 $13,664.95 $14,257.25
07/30/93 $5,941.08 $7,751.98 $15,456.59 $14,199.84
08/31/93 $4,870.43 $6,453.37 $13,506.32 $14,737.44
09/30/93 $4,639.50 $5,479.60 $12,083.34 $14,624.42
10/29/93 $5,206.32 $6,525.45 $14,147.78 $14,926.74
11/30/93 $5,164.33 $6,786.94 $13,832.10 $14,784.47
12/31/93 $6,109.03 $7,916.21 $15,978.00 $14,963.21
01/31/94 $5,493.88 $7,069.83 $15,494.17 $15,471.44
02/28/94 $5,154.49 $7,175.59 $14,481.78 $15,051.89
03/31/94 $5,090.86 $7,221.82 $14,570.18 $14,396.93
04/29/94 $5,239.34 $7,093.91 $13,575.12 $14,581.37
05/31/94 $5,069.64 $6,593.69 $13,990.51 $14,819.74
06/30/94 $5,324.19 $7,138.65 $13,671.75 $14,457.08
07/29/94 $5,517.40 $7,259.92 $14,040.62 $14,931.47
08/31/94 $6,118.52 $7,964.54 $14,906.12 $15,542.23
09/30/94 $6,848.45 $8,546.51 $16,637.63 $15,162.48
10/31/94 $6,483.49 $7,935.66 $15,432.54 $15,502.64
11/30/94 $5,667.68 $6,938.78 $13,524.51 $14,938.75
12/30/94 $5,946.77 $7,128.53 $14,143.19 $15,160.05
01/31/95 $4,552.66 $5,327.58 $11,724.57 $15,552.93
02/28/95 $4,814.05 $5,288.62 $12,387.42 $16,158.46
03/31/95 $5,031.88 $5,130.40 $13,814.13 $16,634.50
04/28/95 $4,792.27 $5,031.95 $13,810.41 $17,123.96
05/31/95 $4,661.57 $4,706.90 $13,608.54 $17,807.34
06/30/95 $4,726.92 $4,942.95 $13,797.52 $18,220.23
07/31/95 $5,102.43 $5,190.11 $13,958.58 $18,824.18
08/31/95 $5,080.34 $5,228.17 $14,119.64 $18,871.17
09/29/95 $5,036.16 $5,176.86 $14,214.13 $19,667.12
10/31/95 $4,263.07 $4,350.80 $12,332.94 $19,596.85
11/30/95 $4,307.24 $4,422.78 $13,509.76 $20,456.15
12/29/95 $4,351.42 $4,602.08 $13,696.59 $20,850.19
01/31/96 $5,315.91 $5,809.73 $16,504.77 $21,559.01
02/29/96 $5,158.90 $5,763.14 $16,751.73 $21,759.57
03/29/96 $4,867.31 $5,590.01 $16,707.35 $21,969.07
04/30/96 $4,889.74 $5,609.56 $16,654.38 $22,292.67
05/31/96 $5,024.32 $5,766.73 $17,014.44 $22,866.61
06/28/96 $4,171.98 $4,964.78 $14,435.32 $22,953.78
07/31/96 $4,126.63 $4,906.19 $14,285.71 $21,940.25
08/30/96 $4,103.96 $4,972.60 $14,541.26 $22,403.74
09/30/96 $3,741.18 $4,550.04 $13,255.64 $23,663.56
10/31/96 $3,673.16 $4,609.32 $13,441.04 $24,315.96
11/29/96 $3,423.74 $4,132.13 $13,401.67 $26,152.33
12/31/96 $3,242.35 $4,021.01 $13,053.06 $25,634.27
01/31/97 $2,918.12 $3,691.35 $12,156.85 $27,234.92
02/28/97 $3,334.99 $4,362.63 $13,653.64 $27,448.73
03/31/97 $2,871.80 $3,676.79 $11,717.34 $26,323.01
04/30/97 $2,640.20 $3,333.20 $10,512.60 $27,893.07
05/30/97 $2,686.52 $3,280.93 $11,237.02 $29,590.03
06/30/97 $2,232.59 $2,656.83 $9,970.01 $30,914.93
07/31/97 $2,280.09 $2,659.07 $10,122.48 $33,373.41
08/29/97 $2,303.84 $2,704.77 $10,106.73 $31,505.17
09/30/97 $2,256.34 $2,746.25 $10,916.33 $33,229.63
10/31/97 $1,757.57 $2,326.18 $8,887.68 $32,121.10
11/28/97 $1,353.81 $1,870.05 $6,998.05 $33,606.83
12/31/97 $1,382.31 $2,057.34 $7,574.86 $34,183.57
01/30/98 $1,382.31 $2,228.58 $8,001.49 $34,561.29
02/27/98 $1,261.05 $1,976.37 $7,709.43 $37,052.55
03/31/98 $1,285.30 $2,017.23 $8,196.91 $38,948.44
04/30/98 $1,358.06 $2,666.60 $9,294.27 $39,340.10
05/29/98 $1,091.29 $2,262.03 $7,781.73 $38,664.83
06/30/98 $921.54 $1,849.54 $7,114.30 $40,234.22
07/31/98 $926.39 $1,860.26 $6,446.93 $39,806.88
08/31/98 $712.98 $1,522.91 $5,022.08 $34,057.55
09/30/98 $994.29 $2,331.37 $7,880.51 $36,239.41
10/30/98 $972.47 $2,361.51 $7,967.85 $39,184.53
11/30/98 $911.84 $2,287.86 $7,552.67 $41,558.46
12/31/98 $926.39 $1,850.00 $6,689.31 $43,951.69
01/29/99 $885.16 $1,927.19 $6,672.56 $45,788.91
02/26/99 $865.76 $1,708.43 $6,237.91 $44,366.05
03/31/99 $860.91 $1,845.71 $6,220.52 $46,140.61
04/30/99 $957.91 $1,870.14 $7,286.38 $47,927.38
05/28/99 $807.56 $1,839.86 $5,929.32 $46,797.24
06/30/99 $829.38 $1,891.84 $6,335.41 $49,392.29
07/30/99 $776.03 $1,760.23 $6,045.93 $47,852.33
08/31/99 $817.26 $2,044.23 $6,428.18 $47,615.42
09/30/99 $1,040.37 $2,618.50 $8,083.09 $46,311.70
10/29/99 $931.24 $2,453.95 $7,012.79 $49,241.08
11/30/99 $892.44 $2,262.10 $6,700.55 $50,241.99
12/31/99 $902.14 $2,348.49 $6,644.93 $53,199.30
--------------------------------------------------------------------
AVERAGE ANNUAL PERFORMANCE FOR THE PERIODS ENDED
DECEMBER 31, 1999
--------------------------------------------------------------------
TEN YEAR FIVE YEAR ONE YEAR SIX MONTH
-------- --------- -------- ---------
Gold Shares Fund (21.38)% (31.42)% (2.62)% 8.77%
S&P 500 Index 18.19% 28.54% 21.04% 7.71%
Financial Times
Gold Mines
Index n/a (14.02)% (0.66)% 4.89%
Johannesburg All
Gold Index (13.49)% (19.91)% 26.95% 24.14%
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 value. The
Financial Times Gold Mines Index is a market capitalization-weighted
total return index of the leading North 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
Several major events affected the gold market over the last six months leaving
gold in a stronger fundamental position than it had been in for several years.
Additionally, several factors contributed to the volatility of both precious
metals and gold during the last few months of 1999:
1. gold auctions by the Bank of England;
2. the Washington Agreement, which limits the sales and lending of
15 central banks; and
3. the marketing strategies of gold companies.
32
<PAGE>
- --------------------------------------------------------------------------------
GOLD FUNDS
- --------------------------------------------------------------------------------
On August 25, 1999, gold hit a 23-year low closing at $252 per ounce. This ended
the four-month price decline prior to the first Bank of England auction in
August. Gold continued to trade in a very narrow range (around $255) until the
second Bank of England auction in early September. The result of this second
auction had a very positive effect on the market. One of the major gold mining
companies purchased nearly half of the auctioned gold. This suggested that the
economics of buying gold and then selling it were better than those of mining
the gold and then selling it. Gold rose sharply on the back of that
announcement. Another major announcement came the following week when 15 central
banks stated they would limit their sales and lending of gold. This removed
concern about the large gold supply in the market, and gold reacted immediately,
gaining 25% in a few days.
The ensuing rally in the gold equities markets was short lived. Rumors about the
hedge positions of two companies spread through the sector. The resulting
sell-off lowered the price of all the gold equities. Very light trading in both
the physical and the equity market characterized the rest of the year, and gold
was unable to repeat the highs that it had seen in October.
CURRENT OUTLOOK
The fundamental outlook for gold is very positive. Few companies are able to
earn a reasonable return at the current gold price. This is preventing the
development of new mines and slowing the development of older mines. With the
primary supply of gold dwindling, and the potential for the sale of above-ground
stockpiles limited by the Washington Agreement, supply is tightening. Demand
remains very strong and is expected to outstrip supply again in 2000. These
fundamentals all put upward pressure on gold prices, giving it a favorable
outlook going forward.
33
<PAGE>
- --------------------------------------------------------------------------------
GOLD FUNDS
- --------------------------------------------------------------------------------
WORLD GOLD FUND
------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------
NEWMONT MINING CORP ....................................... 9.46%
SENIOR GOLD PRODUCERS
DELTA GOLD NL ............................................. 7.67%
INTERMEDIATE & JUNIOR GOLD PRODUCERS
FRANCO-NEVADA MINING CORP., LTD ........................... 7.50%
MINING FINANCE
HOMESTAKE MINING .......................................... 7.06%
SENIOR GOLD PRODUCERS
PLACER DOME, INC .......................................... 7.04%
SENIOR GOLD PRODUCERS
GOLDCORP, INC ............................................. 6.77%
SENIOR GOLD PRODUCERS
BARRICK GOLD CORP ......................................... 6.77%
SENIOR GOLD PRODUCERS
FREEPORT-MCMORAN COPPER & GOLD, INC ....................... 6.53%
SENIOR GOLD PRODUCERS
IAMGOLD ................................................... 4.15%
INTERMEDIATE & JUNIOR GOLD PRODUCERS
DAYTON MINING CORP ........................................ 3.20%
INTERMEDIATE & JUNIOR GOLD PRODUCERS
-------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
-------------------------------------------
SENIOR GOLD PRODUCERS ..................................... 55.81%
INTERMEDIATE & JUNIOR GOLD PRODUCERS ...................... 20.24%
GOLD/MINERAL EXPLORATION & DEVELOPMENT .................... 12.38%
MINING FINANCE ............................................ 7.50%
DIAMOND MINING & EXPLORATION .............................. 3.37%
34
<PAGE>
- --------------------------------------------------------------------------------
GOLD FUNDS
- --------------------------------------------------------------------------------
GOLD SHARES FUND
------------------------------------------
TOP 10 HOLDINGS BASED ON TOTAL INVESTMENTS
------------------------------------------
NEWMONT MINING CORP ....................................... 8.82%
GOLD MINING - NORTH AMERICA
BARRICK GOLD CORP ......................................... 8.01%
GOLD MINING - NORTH AMERICA
FREEPORT-MCMORAN COPPER & GOLD, INC ....................... 7.58%
GOLD MINING - NORTH AMERICA
GOLD FIELDS LTD ........................................... 7.08%
GOLD MINING - AFRICA
HARMONY GOLD MINING ....................................... 6.97%
GOLD MINING - AFRICA
PLACER DOME, INC .......................................... 6.19%
GOLD MINING - NORTH AMERICA
DELTA GOLD NL ............................................. 5.48%
GOLD MINING - AUSTRALIA
HOMESTAKE MINING .......................................... 5.39%
GOLD MINING - NORTH AMERICA
GOLDCORP, INC ............................................. 5.24%
GOLD MINING - NORTH AMERICA
FRANCO-NEVADA MINING CORP., LTD ........................... 5.01%
GOLD MINING - NORTH AMERICA
-------------------------------------------
TOP 5 INDUSTRIES BASED ON TOTAL INVESTMENTS
-------------------------------------------
GOLD MINING - NORTH AMERICA ............................... 53.39%
GOLD MINING - AFRICA ...................................... 26.05%
GOLD MINING - AUSTRALIA ................................... 9.74%
DIAMOND MINING & EXPLORATION .............................. 7.28%
DIVERSIFIED OPERATIONS .................................... 3.35%
35
<PAGE>
- --------------------------------------------------------------------------------
GOLD FUNDS
- --------------------------------------------------------------------------------
WORLD GOLD FUND
PORTFOLIO PROFILE DECEMBER 31, 1999
---------------------------------------------------------------------
COUNTRY DISTRIBUTION % OF INVESTMENTS
-------------------- ----------------
Canada .................................................. 51.43%
U.S ..................................................... 26.21%
Australia ............................................... 15.00%
South Africa ............................................ 2.67%
Other Foreign ........................................... 4.69%
Number of Stocks ........................................ 113
GOLD SHARES FUND
PORTFOLIO PROFILE DECEMBER 31, 1999
---------------------------------------------------------------------
COUNTRY DISTRIBUTION % OF INVESTMENTS
-------------------- ----------------
Canada .................................................... 33.91%
South Africa .............................................. 30.48%
U.S ....................................................... 24.52%
Australia ................................................. 9.23%
Other Foreign ............................................. 1.86%
Number of Stocks .......................................... 60
36
<PAGE>
U.S. TREASURY SECURITIES CASH FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
UNITED STATES
GOVERNMENT COUPON MATURITY PRINCIPAL
OBLIGATIONS 68.48% RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
UNITED STATES TREASURY BILLS 54.71%
Yield 4.928% 01/13/2000 $ 40,000,000 $ 39,945,250
Yield 5.10% 01/20/2000 40,000,000 39,903,643
------------
79,848,893
UNITED STATES TREASURY NOTES 13.77%
6.375% 05/15/2000 20,000,000 20,099,093
TOTAL UNITED STATES GOVERNMENT OBLIGATIONS 99,947,986
(cost $99,947,986)
REPURCHASE AGREEMENTS 31.69%
Joint Tri-Party Repurchase
Agreement, 12/31/99,
collateralized by U.S.
Treasury securities held in
joint tri-party repurchase
accounts:
2.50% Morgan Stanley Dean
Witter, repurchase price
$20,004,167
2.50% 01/03/2000 20,000,000 20,000,000
2.50% Donaldson, Lufkin &
Jenrette, repurchase price
$26,257,075
2.50% 01/03/2000 26,251,606 26,251,606
TOTAL REPURCHASE AGREEMENTS 46,251,606
(cost $46,251,606)
TOTAL INVESTMENTS 100.17% 146,199,592
(cost $146,199,592)
Other assets and liabilities,
net (0.17)% (243,762)
------------
NET ASSETS 100% $145,955,830
============
See notes to portfolios of investments.
37
<PAGE>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
UNITED STATES
GOVERNMENT AND AGENCY COUPON MATURITY PRINCIPAL
OBLIGATIONS RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
FEDERAL FARM CREDIT BANK 10.01%
Discount Notes:
Yield 5.62% 01/24/00 $ 975,000 $ 971,804
Yield 5.25% 01/28/00 104,000 103,621
Yield 5.75% 04/25/00 50,000 49,098
Yield 5.33% 07/25/00 871,000 844,458
Yield 5.33% 07/26/00 1,263,000 1,224,326
Variable Rates:
5.56% 03/15/00 30,000,000 29,998,874
5.56% 06/22/00 25,000,000 24,995,418
Fixed Rates:
5.20% 01/14/00 1,100,000 1,100,045
6.49% 01/20/00 600,000 600,478
5.40% 02/24/00 238,000 238,096
5.62% 03/01/00 5,000,000 5,000,000
5.38% 03/24/00 150,000 150,022
7.17% 04/03/00 105,000 105,567
5.65% 04/24/00 200,000 199,911
5.00% 05/03/00 10,000,000 9,996,034
6.43% 06/02/00 1,000,000 1,002,428
5.40% 07/03/00 1,000,000 997,281
6.10% 07/24/00 100,000 100,142
4.33% 10/26/00 145,000 143,027
-----------
77,820,630
FEDERAL HOME LOAN BANK 69.19%
Discount Notes:
Yield 1.42% 01/03/00 17,000,000 17,000,000
Yield 5.50% 01/10/00 5,240,000 5,234,394
Yield 5.75% 01/13/00 10,000,000 9,988,819
Yield 5.38% 01/26/00 660,000 657,731
Yield 5.78% 02/02/00 1,500,000 1,492,775
Yield 5.52% 07/11/00 206,000 199,987
Yield 5.54% 07/14/00 175,000 169,802
38
<PAGE>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
UNITED STATES
GOVERNMENT AND AGENCY COUPON MATURITY PRINCIPAL
OBLIGATIONS RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
FEDERAL HOME LOAN BANK (CONT'D)
Variable Rates:
5.57% 01/19/00 $25,000,000 $ 24,999,683
6.23% 02/25/00 5,100,000 5,099,988
5.55% 03/17/00 75,000,000 74,992,572
1.85% 03/24/00 1,000,000 991,259
5.65% 03/24/00 200,000 199,861
5.99% 04/07/00 50,000,000 49,995,153
5.00% 05/10/00 500,000 499,548
5.63% 09/07/00 15,000,000 14,996,979
6.32% 09/21/00 5,000,000 4,998,936
5.64% 09/22/00 12,500,000 12,500,000
5.63% 10/10/00 2,000,000 1,999,154
Fixed Rates:
5.00% 01/05/00 1,000,000 999,956
5.98% 01/06/00 300,000 300,016
4.93% 01/13/00 10,000,000 10,000,070
4.90% 01/14/00 10,400,000 10,399,888
8.60% 01/25/00 185,000 185,437
7.78% 02/03/00 250,000 250,619
5.44% 02/04/00 100,000 100,034
4.92% 02/08/00 100,000 99,950
4.90% 02/11/00 10,000,000 9,998,601
4.98% 02/16/00 8,500,000 8,498,234
6.12% 02/18/00 250,000 250,249
4.95% 02/24/00 375,000 374,820
5.00% 02/24/00 5,750,000 5,749,791
5.00% 02/25/00 5,000,000 4,998,645
5.03% 02/25/00 5,500,000 5,495,295
5.04% 02/25/00 7,710,000 7,709,636
5.45% 02/25/00 365,000 364,785
5.08% 03/03/00 340,000 339,797
5.10% 03/03/00 1,000,000 1,000,042
7.18% 03/06/00 10,000 10,018
7.50% 03/07/00 375,000 376,381
5.10% 03/08/00 10,000,000 9,999,660
5.16% 03/08/00 10,000,000 10,001,010
5.10% 03/09/00 9,000,000 8,999,756
5.08% 03/15/00 10,000,000 9,999,718
5.14% 03/29/00 5,000,000 5,000,626
7.17% 03/29/00 300,000 301,580
7.05% 04/03/00 155,000 155,792
5.50% 04/14/00 1,225,000 1,224,316
7.01% 04/19/00 560,000 561,630
5.00% 04/20/00 15,000,000 14,998,753
5.68% 04/20/00 250,000 250,000
5.05% 04/26/00 840,000 840,023
39
<PAGE>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
UNITED STATES
GOVERNMENT AND AGENCY COUPON MATURITY PRINCIPAL
OBLIGATIONS RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
FEDERAL HOME LOAN BANK (CONT'D)
5.15% 05/10/00 $ 100,000 $ 100,011
5.68% 05/15/00 1,000,000 999,536
5.10% 05/17/00 14,350,000 14,344,179
5.20% 05/26/00 10,000,000 9,999,676
5.26% 05/26/00 350,000 350,013
5.63% 06/02/00 9,710,000 9,700,731
5.39% 06/08/00 1,000,000 998,057
6.05% 06/08/00 500,000 501,587
5.35% 06/09/00 8,835,000 8,817,352
5.90% 06/09/00 555,000 555,341
6.37% 06/13/00 400,000 401,707
5.42% 06/14/00 970,000 968,938
6.04% 06/21/00 250,000 250,639
5.58% 06/22/00 1,275,000 1,275,372
5.66% 06/23/00 380,000 380,234
5.66% 06/23/00 500,000 499,153
6.24% 06/30/00 100,000 100,135
6.20% 07/07/00 100,000 100,109
5.50% 07/14/00 1,700,000 1,697,279
6.11% 07/17/00 2,000,000 2,005,554
5.89% 07/24/00 125,000 125,030
6.29% 07/28/00 100,000 100,175
5.69% 08/07/00 250,000 250,000
5.71% 08/09/00 15,000,000 14,996,047
5.57% 08/17/00 125,000 124,706
5.91% 08/23/00 4,080,000 4,079,792
5.56% 08/24/00 190,000 189,369
5.60% 08/24/00 1,615,000 1,612,174
6.04% 09/01/00 5,000,000 4,999,469
5.88% 09/07/00 5,000,000 4,999,154
5.01% 09/21/00 365,000 362,122
6.33% 09/28/00 5,000,000 4,997,771
5.63% 10/06/00 25,000,000 24,988,659
4.40% 10/23/00 600,000 592,304
5.04% 10/26/00 150,000 148,726
6.13% 10/27/00 5,000,000 4,999,839
6.20% 10/27/00 5,000,000 4,999,679
6.16% 11/17/00 1,085,000 1,085,000
5.33% 11/24/00 500,000 495,903
5.62% 12/01/00 225,000 224,002
5.84% 12/01/00 10,000,000 9,983,912
5.97% 12/01/00 5,000,000 4,989,717
5.97% 12/01/00 12,420,000 12,401,512
5.66% 12/15/00 200,000 198,848
4.89% 12/22/00 300,000 296,792
5.18% 12/22/00 250,000 247,584
40
<PAGE>
U.S. GOVERNMENT SECURITIES SAVINGS FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
UNITED STATES
GOVERNMENT AND AGENCY COUPON MATURITY PRINCIPAL
OBLIGATIONS RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
FEDERAL HOME LOAN BANK (CONT'D)
5.22% 12/22/00 $ 5,850,000 $ 5,800,186
5.50% 12/22/00 1,000,000 994,102
5.62% 01/12/01 2,000,000 1,988,194
6.28% 01/12/01 10,000,000 9,999,225
4.97% 01/19/01 6,920,000 6,836,500
------------
538,003,865
STUDENT LOAN MARKETING ASSOCIATION 21.50%
Variable Rates:
5.89% 01/20/00 10,000,000 10,000,000
5.95% 02/02/00 30,000,000 29,999,751
6.18% 02/14/00 10,000,000 9,999,334
6.12% 03/03/00 10,000,000 10,003,049
5.90% 08/18/00 20,000,000 19,993,835
6.23% 11/09/00 5,000,000 4,999,170
6.23% 11/15/00 5,000,000 4,997,890
Fixed Rates:
7.50% 03/08/00 1,125,000 1,128,616
5.57% 03/17/00 550,000 550,484
5.25% 06/30/00 10,000,000 9,989,666
6.13% 06/30/00 10,000,000 9,999,766
5.59% 08/02/00 50,000,000 49,991,468
6.05% 09/14/00 140,000 140,025
6.00% 11/01/00 4,415,000 4,411,751
5.90% 12/01/00 1,000,000 998,414
------------
167,203,219
TOTAL INVESTMENTS 100.70% 783,027,714
(cost $783,027,714)
Other assets and liabilities, net
(0.70)% (5,465,332)
------------
NET ASSETS 100% $777,562,382
============
See notes to portfolios of investments.
41
<PAGE>
NEAR-TERM TAX FREE FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS 95.00% RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
ALABAMA 1.65%
- -------------------------------
Birmingham, Alabama Refunded,
Series B 6.25% 04/01/12 $ 110,000 $ 113,575
CALIFORNIA 4.32%
- -------------------------------
San Francisco Bay Area, Transit
Financing Authority 5.00% 02/01/07 300,000 297,000
CONNECTICUT 4.62%
- -------------------------------
Bridgeport Series A, GO 6.00% 03/01/06 300,000 317,250
HAWAII 2.96%
- -------------------------------
Hawaii State GO, Unlimited Tax 5.25% 09/01/03 200,000 203,250
ILLINOIS 5.61%
- -------------------------------
Buffalo Grove, Illinois Park
District 5.80% 12/30/01 210,000 214,462
Chicago Water Revenue (ZCB) 0.00% 11/01/08 275,000 170,844
----------
385,306
IOWA 4.57%
- -------------------------------
Finance Authority Hospital
Facility Revenue 5.15% 07/01/04 310,000 314,262
KANSAS 5.86%
- -------------------------------
Seward County School
District #480 7.40% 09/01/03 370,000 402,838
MASSACHUSETTS 1.85%
- -------------------------------
Massachusetts Street Health &
Educational, Facilities
Authority Revenue 5.00% 10/01/07 135,000 126,900
NEBRASKA 3.88%
- -------------------------------
Nebraska Public Power
District Revenue 5.70% 01/01/05 255,000 266,475
NEVADA 7.39%
- -------------------------------
Nevada State Municipal Bond
Bank Project #51,
Series A, GO 5.10% 01/01/08 250,000 248,750
Washoe County Gas & Water
Facilities Revenue 6.30% 12/01/14 250,000 258,750
----------
507,500
NEW JERSEY 4.37%
- -------------------------------
Washington Township Board
of Education, GO 5.10% 02/01/08 300,000 300,375
42
<PAGE>
NEAR-TERM TAX FREE FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
NEW YORK 4.44%
- -------------------------------
Hempstead Township,
GO Unlimited Tax 5.375% 11/15/10 $ 120,000 $ 121,135
New York State Dorm, Authority
Revenue Carmel Richmond
Nursing Home 4.50% 07/01/10 200,000 184,000
----------
305,135
OKLAHOMA 2.95%
- -------------------------------
University of Oklahoma
Revenue 12.00% 03/01/00 200,000 202,400
OREGON 1.71%
- -------------------------------
Medford Hospital Facilities
Authority Revenue Asante
Health System, Series A 5.25% 08/15/11 120,000 117,300
PENNSYLVANIA 3.66%
- -------------------------------
Philadelphia Hospitals & Higher
Education Facilities
Authority Revenue 5.00% 05/15/03 250,000 251,563
SOUTH CAROLINA 4.42%
- -------------------------------
Georgetown County
Pollution Control
Facilities Revenue, Series A 7.375% 06/15/05 300,000 303,549
TEXAS 10.06%
- -------------------------------
Comal Independent School
District 4.90% 02/01/00 240,000 240,149
5.00% 02/01/01 255,000 256,257
Haltom City Tax Note 4.70% 02/01/00 195,000 195,088
----------
691,494
UTAH 8.90%
- -------------------------------
Weber County School District,
Series A, GO 5.15% 06/15/08 300,000 299,250
State Municipal Finance
COOP Local
Government Revenue 6.40% 08/01/09 300,000 312,375
----------
611,625
VIRGIN ISLANDS 4.33%
- -------------------------------
Virgin Islands Public Finance
Authority Revenue 5.00% 10/01/03 300,000 297,750
WASHINGTON 4.50%
- -------------------------------
King County, Series A,
GO Pre-refunded 5.80% 12/01/06 40,000 41,450
King County, Series A, GO 5.80% 12/01/06 260,000 267,475
----------
308,925
43
<PAGE>
NEAR-TERM TAX FREE FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
WISCONSIN 2.95%
- -------------------------------
State Health & Educational
Facilities Revenue 5.20% 06/01/05 $ 200,000 $ 202,500
----------
TOTAL MUNICIPAL BONDS 6,526,972
---------
(cost $6,587,657)
REPURCHASE AGREEMENT 3.68%
Joint Tri-Party Repurchase
Agreement, Donaldson, Lufkin
& Jenrette, 12/31/99, 2.50%,
repurchase price $252,599
collateralized by U.S.
Treasury securities held in
a joint tri-party repurchase
account (cost $252,546) 2.50% 01/03/00 252,546 252,546
TOTAL INVESTMENTS 98.68% 6,779,518
---------
(cost $6,840,203)
Other assets and liabilities,
net 1.32% 90,635
----------
NET ASSETS 100% $6,870,153
==========
See notes to portfolios of investments.
44
<PAGE>
TAX FREE FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS 96.96% RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
CALIFORNIA 4.75%
- -------------------------------
California Educational
Facilities Authority Revenue,
Heald Colleges 5.25% 02/15/13 $ 260,000 $ 241,800
Foothill Eastern Corridor
Agency, Toll Road Revenue 4.75% 01/15/11 700,000 664,125
-----------
905,925
COLORADO 1.82%
- -------------------------------
Denver Colorado City & County
School District #1 5.00% 12/01/23 410,000 346,450
FLORIDA 3.88%
- -------------------------------
Florida Board of Education
Capital Outlay, GO
Unlimited Tax, Refunding,
Series A 6.625% 06/01/07 700,000 740,250
ILLINOIS 9.07%
- -------------------------------
Du Page County, Refunding 5.60% 01/01/21 490,000 464,887
Illinois Development Finance
Authority Hospital Revenue 5.50% 11/15/29 900,000 729,000
Illinois Development Financing
Authority Revenue, Series B 6.25% 09/01/17 250,000 255,000
Illinois Regional
Transportation Authority
Revenue, Series A 7.20% 11/01/20 250,000 280,313
-----------
1,729,200
INDIANA 5.29%
- -------------------------------
Fort Wayne Water Works Revenue 4.75% 12/01/10 500,000 470,625
Indiana Health Facility
Finance Authority Revenue,
Series A 5.75% 08/01/08 540,000 537,975
-----------
1,008,600
IOWA 2.48%
- -------------------------------
Polk County Revenue Catholic
Health Initiatives,
Series A 5.125% 12/01/11 500,000 473,750
KANSAS 2.44%
- -------------------------------
Kansas State Development
Finance Authority Hospital
Revenue, Series Z 5.00% 12/15/12 500,000 465,625
MASSACHUSETTS 3.27%
- -------------------------------
Massachusetts Port Authority
Revenue, Series A 5.00% 07/01/27 750,000 624,375
45
<PAGE>
TAX FREE FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
MICHIGAN 6.16%
- -------------------------------
Belding Area Schools 5.00% 05/01/18 $ 390,000 $ 342,225
Lincoln School District 5.00% 05/01/13 400,000 372,000
Michigan State Hospital
Finance Authority Revenue 4.90% 05/15/13 500,000 461,250
-----------
1,175,475
MISSISSIPPI 2.10%
- -------------------------------
Vicksburg Leased Housing Corp.
Housing Revenue,
Refunding, Series A 6.125% 02/15/22 400,000 400,000
NEVADA 4.33%
- -------------------------------
Clark County Las Vegas
Convention & Visitors
Authority, GO Limited Tax 5.50% 07/01/17 870,000 825,412
NEW YORK 4.68%
- -------------------------------
New York, GO Unlimited,
Series J 5.00% 05/15/12 500,000 470,000
New York, GO Unlimited,
Series H 5.25% 03/15/14 450,000 423,000
-----------
893,000
NORTH CAROLINA 3.60%
- -------------------------------
North Carolina Eastern
Municipal Power Agency
Revenue, Refunding,
Series A 5.60% 01/01/10 675,000 686,813
OHIO 2.51%
- -------------------------------
Olentangy Local School
District, GO Limited Tax,
Series A 6.25% 12/01/15 240,000 258,900
South Euclid Special
Assessment, GO Limited Tax 6.70% 12/01/14 200,000 220,000
-----------
478,900
OKLAHOMA 2.29%
- -------------------------------
Oklahoma Agriculture &
Mechanical Colleges Revenue 5.00% 07/01/18 500,000 436,250
OREGON 2.30%
- -------------------------------
Multnomah County, GO Unlimited 4.75% 10/01/15 500,000 438,750
46
<PAGE>
TAX FREE FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
PENNSYLVANIA 2.57%
- -------------------------------
Chester County Health &
Educational Facilities
Authority Revenue 5.00% 05/15/08 $ 250,000 $ 244,687
Philadelphia Hospital & Higher
Educational Facilities
Authority Revenue 4.95% 06/15/06 265,000 244,794
-----------
489,481
PUERTO RICO 1.59%
- -------------------------------
Puerto Rico Municipal
Finance Agency 5.00% 08/01/02 300,000 302,217
RHODE ISLAND 5.21%
- -------------------------------
North Providence, GO
Unlimited Tax, Series A 6.05% 07/01/13 500,000 526,250
Providence Public Building
Authority Revenue,
Series B 7.25% 12/15/10 450,000 467,757
-----------
994,007
SOUTH CAROLINA 2.21%
- -------------------------------
South Carolina Jobs Economic
Development Authority
Revenue 5.00% 11/01/23 500,000 420,625
TEXAS 13.27%
- -------------------------------
Austin, GO 5.00% 09/01/16 565,000 506,381
Bexar County Independent
School District 5.00% 06/15/18 500,000 438,125
Carroll Independent School
District 5.00% 02/15/20 500,000 430,625
Clear Lake City Independent
School District 5.00% 03/01/18 500,000 434,375
Conroe Independent School
District 5.10% 02/15/21 325,000 285,594
San Antonio Electric & Gas 5.00% 02/01/18 500,000 434,375
-----------
2,529,475
VIRGINIA 2.22%
- -------------------------------
State Housing Development
Authority Multifamily
Revenue, Series E 5.90% 11/01/17 425,000 423,406
WASHINGTON 2.54%
- -------------------------------
King & Snohomish Counties'
School District 5.00% 06/15/10 500,000 484,375
WEST VIRGINIA 4.77%
- -------------------------------
Berkeley County Hospital
Revenue, Refunding 6.50% 11/01/09 115,000 115,863
State Housing Development
Revenue, Series A 6.05% 05/01/27 790,000 792,962
-----------
908,825
47
<PAGE>
TAX FREE FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COUPON MATURITY PRINCIPAL
MUNICIPAL BONDS RATE DATE AMOUNT VALUE
------ --------- ------------ ------------
WYOMING 1.61%
- -------------------------------
Wyoming Community Development
Authority, Series A 6.10% 06/01/33 $ 310,000 $ 306,513
-----------
TOTAL MUNICIPAL BONDS 18,487,699
----------
(cost $19,620,192)
REPURCHASE AGREEMENT 2.41%
Joint Tri-Party Repurchase
Agreement, Donaldson, Lufkin
& Jenrette, 12/31/99, 2.50%,
repurchase price $460,348,
collateralized by U.S.
Treasury securities held in
a joint tri-party repurchase
account (cost $460,252) 2.50% 01/03/00 460,252 460,252
-----------
TOTAL INVESTMENTS 99.37% 18,947,951
----------
(cost $20,080,444)
Other assets and liabilities,
net 0.63% 120,386
-----------
NET ASSETS 100% $19,068,337
===========
See notes to portfolios of investments.
48
<PAGE>
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS 92.03% SHARES VALUE
------ --------
AIRCRAFT & AEROSPACE 1.02%
The Boeing Co. 2,300 $ 95,594
APPAREL 0.26%
Nike, Inc., Class B 500 24,781
BANKS 8.27%
Bank of New York Co., Inc. 1,800 72,000
Bank One Corp. 2,000 64,125
BankAmerica Corp. 3,000 150,562
Citigroup, Inc. 3,000 166,687
Fifth Third Bancorp 600 44,025
First Union Corp. 2,000 65,625
FleetBoston Financial Corp. 592 20,609
Mellon Financial Corp. 1,200 40,875
National City Corp. 1,000 23,687
PNC Bank Corp. 700 31,150
Wachovia Corp. 500 34,000
Wells Fargo & Co. 1,500 60,656
----------
774,001
BROADCASTING 2.45%
CBS Corp. 1,700 108,694(*)
Hispanic Broadcasting Corp. 500 46,109(*)
Infinity Broadcasting Corp., Class A 1,500 54,281(*)
Spanish Broadcasting System, Inc., Class A 500 20,125(*)
----------
229,209
CHEMICALS & PHARMACEUTICALS 3.65%
Dow Chemical Co. 500 66,812
E.I. Du Pont de Nemours & Co. 1,100 72,462
Merck & Co. 1,000 67,062
Pharmacia & Upjohn, Inc. 3,000 135,000
----------
341,336
COMMUNICATION EQUIPMENT 1.16%
Compaq Computer Corp. 4,000 108,250
COMMUNICATION SERVICES 1.53%
Clear Channel Communications, Inc. 1,600 142,800(*)
COMPUTERS & OFFICE EQUIPMENT 2.43%
Hewlett-Packard Co. 2,000 227,875
49
<PAGE>
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
------ --------
DATA PROCESSING & SOFTWARE 0.42%
Micron Technology, Inc. 500 $ 38,875(*)
ELECTRIC SERVICES 0.63%
Reliant Energy, Inc. 1,500 34,312
Texas Utilities 700 24,894
----------
59,206
ENTERTAINMENT 4.40%
Carnival Corp., Class A 1,400 66,937
Seagram Company, Ltd. 1,000 44,937
Time-Warner, Inc. 2,800 202,825
Viacom Inc., Class B 1,600 96,700(*)
----------
411,399
FINANCIAL SERVICES 8.39%
Allstate Corp. 1,900 45,600
Chase Manhattan Corp. 2,000 155,375
Fannie Mae 2,400 149,850
First Data Corp. 1,000 49,312
Household International, Inc. 1,000 37,250
J.P. Morgan & Co. 400 50,650
Merrill Lynch & Co. 900 75,150
Morgan Stanley Dean Witter & Co. 1,300 185,575
State Street Corp. 500 36,531
----------
785,293
HEALTHCARE 1.58%
Columbia/HCA Healthcare Corp. 1,300 38,106
Medtronic, Inc. 3,000 109,313
----------
147,419
INSURANCE 1.53%
American General Corp. 600 45,525
Cigna Corp. 500 40,281
Marsh & McLennan Companies, Inc. 600 57,413
----------
143,219
MANUFACTURING 8.25%
Applied Materials, Inc. 900 114,019(*)
Caterpillar, Inc. 800 37,650
Honeywell International, Inc. 1,300 74,994
Illinois Tool Works, Inc. 1,000 67,563
Ingersoll-Rand Co. 500 27,531
Keycorp 500 11,063
50
<PAGE>
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
------ --------
MANUFACTURING (CONT'D)
Philips Electronics N.V., ADR 2,760 $372,600
PPG Industries, Inc. 500 31,281
Weyerhaeuser Co. 500 35,906
----------
772,607
MOTOR VEHICLES 1.57%
Delphi Automotive Systems 1,300 20,475
Ford Motor Co. 1,000 53,438
General Motors Corp. 1,000 72,688
----------
146,601
NATURAL GAS TRANSMISSION & DISTRIBUTION 0.36%
PG&E Corp. 900 18,450
Williams Companies, Inc. 500 15,281
----------
33,731
OIL & GAS EXTRACTION 3.87%
Conoco, Inc. 1,500 37,313
Enron Corp. 5,000 221,875
Halliburton Co. 1,000 40,250
Schlumberger Ltd. 1,000 56,250
Transocean Sedco Forex, Inc. 194 6,535
----------
362,223
PETROLEUM REFINING 8.45%
Chevron Corp. 1,500 129,938
Exxon Mobil Corp. 5,976 481,442
Phillips Petroleum Co. 600 28,200
Royal Dutch Petroleum Co. 2,500 151,094
----------
790,674
PHOTOGRAPHY 0.24%
Xerox Corp. 1,000 22,688
PUBLISHING 2.81%
New York Times Co., Class A 2,000 98,250
Tribune Co. 3,000 165,188
----------
263,438
REAL ESTATE INVESTMENT TRUSTS 0.38%
Mills Corp. 2,000 35,750
51
<PAGE>
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
------ ----------
RETAIL 1.09%
Hasbro, Inc. 1,000 $ 19,063
Limited, Inc. 500 21,656
Lowe's Companies, Inc. 1,000 59,750
Too, Inc. 71 1,225(*)
----------
101,694
SCIENCE & TECHNOLOGY 0.57%
Monsanto Co. 1,500 53,438
SHIPPING 0.80%
Burlington Northern Santa Fe Corp. 1,000 24,250
FDX Corp. 700 28,656(*)
Union Pacific Corp. 500 21,813
----------
74,719
STEEL 1.15%
Alcoa, Inc. 900 74,700
USX-US Steel Group, Inc. 1,000 33,000
----------
107,700
TELECOMMUNICATIONS 22.36%
AT&T Corp. 6,000 304,500
Bell Atlantic Corp. 3,604 221,871
Bellsouth Corp. 4,400 205,975
Global Crossing Ltd. 12,325 616,250(*)
GTE Corp. 2,000 141,125
Motorola, Inc. 1,400 206,150
Nextel Communications, Inc., Class A 700 72,188(*)
Sprint Corp. 2,500 168,281
Sprint Corp., PCS Group 500 51,250(*)
Unisys Corp. 600 19,163(*)
US West, Inc. 1,200 86,400
----------
2,093,153
TOBACCO 0.50%
Philip Morris, Inc. 2,000 46,375
UTILITIES 1.42%
AES Corp. 400 29,900(*)
Central & South West Corp. 1,500 30,000
Consolidated Edison, Inc. 500 17,250
Edison International 800 20,950
Southern Co. 1,500 35,250
----------
133,350
52
<PAGE>
EQUITY INCOME FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
------ ----------
WHOLESALE TRADE 0.49%
Costco Wholesale Corp. 500 $ 45,625(*)
----------
TOTAL COMMON STOCKS 8,613,023
----------
(cost $7,013,611)
PREFERRED STOCKS 4.41%
BROADCASTING 0.85%
Emmis Communications Corp., 6.25%, Series A 1,000 79,500
ELECTRIC SERVICES 0.44%
Duke Energy Capital Trust 7.2% 2,000 41,620
FINANCIAL SERVICES 2.14%
Citigroup Capital Preferred 6.875% 10,000 200,600
REAL ESTATE INVESTMENT TRUSTS 0.98%
Fleet Capital Trust, 7.05%, Series III 2,000 38,760
Public Storage, Inc., 8.875%, Series G 2,500 52,500
----------
91,260
----------
TOTAL PREFERRED STOCKS 412,980
----------
(cost $469,437)
PRINCIPAL
REPURCHASE AGREEMENT 2.36% AMOUNT
---------
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette, 12/31/99,
2.50%, due 1/3/00, repurchase price
$220,747, collateralized by U.S. Treasury
securities held in a joint tri-party
repurchase account (cost $220,701) $ 220,701 220,701
----------
TOTAL INVESTMENTS 98.80% 9,246,704
----------
(cost $7,703,749)
Other assets and liabilities, net 1.20% 112,674
----------
NET ASSETS 100% $9,359,378
==========
See notes to portfolios of investments.
53
<PAGE>
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS 98.01% SHARES VALUE
------ ----------
AIRCRAFT & AEROSPACE 0.47%
Honeywell International, Inc. 2,200 $126,912
Raytheon Company, Class A 191 4,739
Rockwell International Corp. 2,000 95,750
United Technologies Corp. 250 16,250
----------
243,651
BANKS 4.08%
Bank of New York Co., Inc. 2,000 80,000
Bank One Corp. 6,436 206,354
BankAmerica Corp. 8,800 441,650
Chase Manhattan Corp. 6,300 489,431
Citigroup, Inc. 16,350 908,447
----------
2,125,882
BEVERAGES 2.93%
Anheuser Busch Co. 2,000 141,750
Coca-Cola Co. 13,500 786,375
PepsiCo, Inc. 17,000 599,250
----------
1,527,375
BROADCAST/MEDIA 0.91%
Hispanic Broadcasting Corp. 1,000 92,219(*)
MediaOne Group, Inc. 1,800 138,262(*)
Spanish Broadcasting System, Inc., Class A 1,500 60,375(*)
Viacom, Inc., Class A 3,000 181,312(*)
----------
472,168
BUSINESS SERVICES 1.51%
Bisys Group, Inc. 3,000 195,750(*)
Cendant Corp. 6,000 159,375(*)
Compuware Corp. 8,000 298,000(*)
Dun & Bradstreet Corp. 2,000 59,000
Ha-Lo Industries, Inc. 10,000 75,000(*)
----------
787,125
CHEMICALS 0.66%
Dow Chemical Co. 200 26,725
E.I. Du Pont de Nemours & Co. 4,400 289,850
W. R. Grace & Co. 2,000 27,750(*)
----------
344,325
COMPUTERS & OFFICE EQUIPMENT 8.79%
Apple Computer, Inc. 6,000 616,875(*)
Cisco Systems, Inc. 14,500 1,553,312(*)
54
<PAGE>
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
------- ----------
COMPUTERS & OFFICE EQUIPMENT (CONT'D)
COMPAQ Computer Corp. 11,000 $297,687
Dell Computer Corp. 1,000 51,000(*)
Hewlett-Packard Co. 4,000 455,750
IBM Corp. 11,400 1,231,200
Minnesota Mining & Manufacturing Co. 1,700 166,387
Sun Microsystems, Inc. 2,000 154,875(*)
Tandy Corp. 1,000 49,187
----------
4,576,273
CONSTRUCTION 0.05%
Kaufman & Broad Home Corp. 1,000 24,187
DATA PROCESSING & SOFTWARE 10.62%
Automatic Data Processing, Inc. 2,000 107,750
ChoicePoint, Inc. 6,000 248,250(*)
Computer Associates International 5,000 349,687
First Data Corp. 5,000 246,562
Microsoft Corp. 28,000 3,269,000(*)
National Data Corp. 3,000 101,812
Oracle Corp. 10,818 1,212,292(*)
----------
5,535,353
ELECTRICAL ENGINEERING & ELECTRONICS 0.05%
Black & Decker Corp. 500 26,125
ELECTRONICS & COMPONENTS 4.28%
Conexant Systems, Inc. 2,000 132,750(*)
Emerson Electric Co. 1,800 103,275
Intel Corp. 17,080 1,405,897
Motorola, Inc. 4,000 589,000
----------
2,230,922
ENTERTAINMENT 0.75%
The Walt Disney Co. 6,000 175,500
Time-Warner, Inc. 3,000 217,312
----------
392,812
FINANCIAL SERVICES 6.31%
American Express Co. 5,170 859,512
Associates First Capital Corp., Class A 5,000 137,187
Charles Schwab Corp. 2,000 76,750
Equifax, Inc. 5,000 117,812
Fannie Mae 22,000 1,373,625
Federated Investors, Inc., Class B 14,100 282,881
55
<PAGE>
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
------- ----------
FINANCIAL SERVICES (CONT'D)
Freddie Mac 5,800 $272,962
Sovereign Bancorp, Inc. 8,000 59,625
Washington Mutual, Inc. 4,000 104,000
----------
3,284,354
FOOD 0.72%
H.J. Heinz Co. 1,500 59,719
Kellogg Co. 1,800 55,462
McCormick & Co., Inc., Non-Voting Shares 5,000 148,750
Sara Lee Corp. 5,000 110,313
----------
374,244
HEALTHCARE & EQUIPMENT 2.24%
Columbia/HCA Healthcare Corp. 3,600 105,525
Guidant Corp. 1,408 66,176(*)
Johnson & Johnson Co. 10,000 931,250
Oxford Health Plans, Inc. 5,000 63,438(*)
----------
1,166,389
HOUSEHOLD APPLIANCES 6.03%
General Electric Co. 20,300 3,141,425
HOUSEHOLD PRODUCTS 1.90%
Colgate Palmolive 2,800 182,000
Proctor & Gamble Co. 7,000 766,938
Tupperware Corp. 2,500 42,344
----------
991,282
INSURANCE 3.84%
Allstate Corp. 6,594 158,256
American International Group 13,125 1,419,141
Hartford Financial Services Group, Inc. 4,800 227,400
ReliaStar Financial Corp. 5,000 195,938
----------
2,000,735
INTERNET 0.22%
MindSpring Enterprises, Inc. 2,000 52,812(*)
Stamps.com, Inc. 1,500 62,438(*)
----------
115,250
INVESTMENT TRUSTS 1.69%
S & P 500 Depository Receipts 6,000 881,250
56
<PAGE>
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
------- ----------
MACHINERY 0.77%
Caterpillar, Inc. 3,200 $150,600
Cooper Cameron Corp. 2,000 97,875(*)
Weatherford International, Inc. 3,800 151,763(*)
----------
400,238
METAL & MINERAL MINING 0.82%
Freeport-McMoRan Copper & Gold, Inc., Class B 10,000 211,250(*)
Inco Ltd. 7,000 164,500(*)
Placer Dome, Inc. 5,000 53,750
----------
429,500
MOTOR VEHICLES & PARTS 0.50%
Autozone, Inc. 1,000 32,313(*)
Delphi Automotive Systems Corp. 2,096 33,012
Ford Motor Co. 2,000 106,875
General Motors Corp. 1,000 72,688
ITT Industries, Inc. 400 13,375
----------
258,263
OFFICE EQUIPMENT 0.10%
Xerox Corp. 2,400 54,450
OIL & GAS EXTRACTION 2.69%
Baker Hughes, Inc. 5,500 115,844
Blackrock Ventures, Inc. 340,000 235,571(*)
Conoco, Inc., Class B 3,800 94,525
Diamond Offshore Drilling, Inc. 1,000 30,563
Enron Corp. 6,500 288,438
ENSCO International, Inc. 4,000 91,500
EOG Resources, Inc. 5,000 87,813
Global Marine, Inc. 4,000 66,500(*)
Halliburton Co. 1,000 40,250
Schlumberger Ltd. 2,800 157,500
Transocean Sedco Forex, Inc. 543 18,292
Unocal Corp. 5,200 174,525
----------
1,401,321
PETROLEUM REFINING 3.16%
BP Amoco plc, ADR 3,498 207,475
Chevron Corp. 2,600 225,225
Exxon Mobil Corp. 3,952 318,383
Phillips Petroleum Co. 5,100 239,700
Royal Dutch Petroleum 4,100 247,794
Tesoro Petroleum Corp. 4,000 46,250(*)
Texaco, Inc. 3,200 173,800
57
<PAGE>
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
------- ----------
PETROLEUM REFINING (CONT'D)
Tosco Corp. 3,500 $ 95,156
Ultramar Diamond Shamrock Corp. 4,000 90,750
----------
1,644,533
PHARMACEUTICALS 9.01%
Abbott Laboratories 17,500 635,469
American Home Products 4,400 173,525
Baxter International, Inc. 1,100 69,094
Biogen, Inc. 2,000 169,000(*)
Bristol-Myers Squibb Co. 7,000 449,313
Eli Lilly & Co. 8,496 564,984
Merck & Co., Inc. 15,850 1,062,941
Pfizer, Inc. 25,500 827,156
Schering-Plough Corp. 11,200 472,500
Warner-Lambert Co. 3,300 270,394
----------
4,694,376
PHOTOGRAPHY 0.42%
Eastman Kodak Co. 3,300 218,625
PRESCIOUS STONE MINING 0.56%
De Beers Consolidated Mines, ADR 10,000 289,375
REAL ESTATE 0.26%
Duke-Weeks Realty Corp. 6,900 134,550
RESTAURANTS 0.43%
McDonald's Corp. 5,600 225,750
RETAIL 9.40%
Abercrombie & Fitch Co., Class A 8,000 213,500(*)
Gap, Inc. 2,000 92,000
Gillette Co. 2,800 115,325
Gucci Group 1,000 114,500
Hasbro, Inc. 11,000 209,688
Home Depot, Inc. 15,600 1,069,575
Intimate Brands, Inc., Class A 2,000 86,250
K Mart Corp. 16,000 161,000(*)
Lowe's Companies, Inc. 8,400 501,900
Tiffany & Co. 1,000 89,250
Tommy Hilfiger 12,000 279,750(*)
Toys "R" Us, Inc. 2,100 30,056(*)
Wal-Mart Stores, Inc. 28,000 1,935,500
----------
4,898,294
58
<PAGE>
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
------ -----------
TELECOMMUNICATIONS 11.66%
AT&T Corp. 22,202 $1,126,752
AT&T Corp., Liberty Media, Class A 2,474 140,400(*)
Bell Atlantic Corp. 5,810 357,678
Bellsouth Corp. 9,200 430,675
GTE Corp. 6,000 423,375
Lucent Technologies, Inc. 12,000 897,750
MCI Worldcom, Inc. 10,287 545,854(*)
OCI Communications, Inc., Class B,
Non-Voting Shares 28,000 291,000(*)
SBC Communications, Inc. 17,001 828,799
Sprint Corp. 6,300 424,069
Sprint Corp., PCS Group 2,200 225,500(*)
US West, Inc. 1,849 133,128
Vodafone Airtouch plc, ADR 5,000 247,500
----------
6,072,480
UTILITIES 0.18%
Williams Companies, Inc. 3,000 91,688
----------
TOTAL COMMON STOCKS 51,054,570
----------
(cost $27,069,641)
CONTRACTS VALUE
PURCHASED OPTIONS 1.05% --------- ----------
COMPUTERS & OFFICE EQUIPMENT 0.16%
Sun Microsystems, Inc., Strike Price 120, Call,
Expiration Jan. 2000 (premium $57,045) 30 84,375
ELECTRICAL ENGINEERING & ELECTRONICS 0.13%
Tyco International Ltd., Strike Price 45, Call,
Expiration Jan. 2001 (premium $51,840) 60 54,750
Tyco International Ltd., Strike Price 40, Call,
Expiration Jan. 2001 (premium $9,810) 10 10,875
----------
65,625
INTERNET 0.28%
America Online, Inc., Strike Price 60, Call,
Expiration Jan. 2001 (premium $136,400) 50 145,625
OIL & GAS EXTRACTION 0.05%
Baker Hughes, Inc., Strike Price 30, Call,
Expiration Jan. 2001 (premium $8,670) 15 4,032
Schlumberger Ltd., Strike Price 60, Call,
Expiration Jan. 2001 (premium $25,108) 15 19,875
----------
23,907
59
<PAGE>
ALL AMERICAN EQUITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
PURCHASED OPTIONS CONTRACTS VALUE
--------- ----------
PAPER PRODUCTS 0.12%
International Paper Co., Strike Price 50,
Call, Expiration Jan. 2001
(premium $37,650) 50 $ 63,750
PETROLEUM REFINING 0.15%
Exxon Mobil Corp., Strike Price 80,
Call, Expiration Jan. 2001
(premium $33,302) 30 30,375
Exxon Mobil Corp., Strike Price 100, Call,
Expiration Jan. 2001 (premium $11,780) 10 17,125
Unocal, Strike Price 40, Call, Expiration
Jan. 2001 (premium $50,300) 100 30,630
----------
78,130
TELECOMMUNICATIONS 0.16%
Nokia Corp., Strike Price 20, Call,
Expiration Jan. 2001 (premium $29,780) 10 83,500
----------
TOTAL PURCHASED OPTIONS 544,912
----------
(cost $451,685)
PRINCIPAL
REPURCHASE AGREEMENT 1.73% AMOUNT
-----------
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette, 12/31/99,
2.50%, due 1/3/00, repurchase price
$901,850, collateralized by U.S. Treasury
securities held in a joint tri-party
repurchase account (cost $901,662) $ 901,662 901,662
-----------
TOTAL INVESTMENTS 100.79% 52,501,144
-----------
(cost $28,422,988)
Other assets and liabilities, net (0.79)% (411,902)
-----------
NET ASSETS 100% $52,089,242
===========
See notes to portfolios of investments.
60
<PAGE>
REAL ESTATE FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS 90.26% SHARES VALUE
REAL ESTATE INVESTMENT TRUSTS 67.70% ------ -----------
OFFICE/INDUSTRIAL 32.68%
AMB Property Corp. 10,000 $199,375
Boston Properties, Inc. 5,000 155,625
Equity Office Properties Trust 11,000 270,875
H&R Real Estate Investment Trust 30,000 219,289
Liberty Property Trust 10,000 242,500
Mack-Cali Realty Corp. 8,000 208,500
Reckson Associates Realty Corp. 7,886 179,406
Spieker Properties, Inc. 7,000 255,062
----------
1,730,632
RESIDENTIAL PROPERTIES 25.70%
Apartment Investment & Management Co. 7,000 278,687
Archstone Communities Trust 5,000 102,500
Avalonbay Communities, Inc. 3,000 102,937
BRE Properties, Inc., Class A 2,200 49,913
Charles E. Smith Residential Realty, Inc. 5,000 176,875
Equity Residential Property Trust 2,000 85,375
Essex Property Trust, Inc. 1,500 51,000
Manufactured Home Communities, Inc. 10,500 255,281
Post Properties, Inc. 6,750 258,188
----------
1,360,756
RETAIL PROPERTIES 9.32%
Kimco Realty Corp. 5,000 169,375
RioCan Real Estate Investment Trust 12,000 71,919
Simon Property Group, Inc. 11,000 252,313
----------
493,607
OTHER REAL ESTATE 22.56%
FINANCIAL SERVICES 3.60%
Capital Trust, Class A 38,100 190,500(*)
HOTELS & LODGING PROPERTIES 1.86%
Shangri-La Asia Ltd. 35,000 39,622
Starwood Hotels & Resorts Worldwide, Inc. 2,500 58,750
----------
98,372
61
<PAGE>
REAL ESTATE FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS SHARES VALUE
------- ----------
OFFICE/INDUSTRIAL 17.10%
Brookfield Properties Corp. 20,000 $209,936
Cadillac Fairview Corp. 11,000 253,793(*)
Gentra, Inc. 6,400 60,528(*)
Oxford Properties Group, Inc. 15,000 144,980(*)
Trizec Hahn Corp. 14,000 236,250
----------
905,487
----------
TOTAL COMMON STOCKS 4,779,354
----------
(cost $5,326,237)
PRINCIPAL
REPURCHASE AGREEMENT 10.75% AMOUNT
-----------
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette, 12/31/99,
2.50%, due 1/3/00, repurchase price
$569,321, collateralized by U.S. Treasury
securities held in a joint tri-party
repurchase account (cost $569,202) $ 569,202 569,202
----------
TOTAL INVESTMENTS 101.01% 5,348,556
----------
(cost $5,895,439)
Other assets and liabilities, net (1.01)% (53,570)
----------
NET ASSETS 100% $5,294,986
==========
See notes to portfolios of investments.
62
<PAGE>
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS 95.89% SHARES VALUE
------ ----------
AIRLINES 0.12%
Cathay Pacific Airways 15,295 $ 27,251
APPAREL 8.00%
Chaifa Holdings Ltd. 670,800 9,924(*)
Giordano International Ltd. 299,000 307,712
Li & Fung Ltd. 545,000 1,367,145
Tommy Hilfiger Corp. 2,000 46,625(*)
Yue Yuen Industrial Holdings Ltd. 49,200 117,090
----------
1,848,496
BANKING & FINANCIAL SERVICES 16.33%
Aeon Credit Service 994,000 409,185
Bank of East Asia 6,283 17,499
Dao Heng Bank Group Ltd. 3,137 16,182
Guoco Group Ltd. 110,000 335,370
Hang Seng Bank Ltd. 8,642 98,666
HSBC Holdings Ltd. 206,574 2,896,580
----------
3,773,482
BEVERAGES 0.27%
Vitasoy International Holdings Ltd. 240,000 62,520
BROADCASTING/MEDIA 0.06%
Television Broadcasts Ltd. 1,980 13,500
CHEMICALS & ALLIED PRODUCTS 4.63%
Jilin Chemical Industrial Co., Ltd., Class H 1,154,000 89,072
Shanghai Petrochemical, Class H 1,452,000 227,882
Yizheng Chemical Fibre, Class H 1,844,000 515,945(*)
Zhenhai Refining and Chemical Co., Ltd., Class H 1,340,000 237,885
----------
1,070,784
CLOSED END FUNDS 1.37%
WEBS Index Fund - Malaysia 37,000 261,313
WEBS Index Fund - Singapore 6,000 55,125
----------
316,438
63
<PAGE>
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
--------- ----------
COMPUTERS & OFFICE EQUIPMENT 6.30%
Acer, Inc., GDR 18,867 $269,326(*)
Founder Hong Kong Ltd. 440,586 538,441(*)
GVC Corp., GDR, 144A 93 372(*)
Hanny Holdings Ltd. 60,000 56,731
Legend Holdings Ltd. 44,000 108,960
Vanda Systems & Communications Holdings Ltd. 1,384,000 480,710(*)
----------
1,454,540
CONGLOMERATES 12.18%
China Vanke Co., Ltd. 80,319 31,721
Citic Pacific Ltd. 109,614 411,749
First Pacific Co., Ltd. 648,387 504,630
Guangzhou Investment Co., Ltd. 500,000 39,879(*)
Hutchison Whampoa 94,519 1,373,982
Shanghai Industrial Holdings Ltd. 193,005 403,464
Swire Pacific Ltd., Group A 4,249 25,089
The Wharf Holdings Ltd. 10,612 24,641
----------
2,815,155
CONSTRUCTION 3.87%
Cheung Kong Holdings Ltd. 60,386 765,166
Cheung Kong Infrastructure Holdings 10,188 19,659
Road King Infrastructure Ltd. 180,000 108,831
----------
893,656
ELECTRIC GENERATION 0.52%
CLP Holdings Ltd. 9,406 43,318
Dongfang Electrical Machinery Co., Ltd., Class H 736,000 47,340
Hong Kong Electric Holdings, Ltd. 9,424 29,460
----------
120,118
ELECTRONIC EQUIPMENT 7.40%
ASM Pacific Technology Ltd. 306,000 543,230
GP Batteries International Ltd. 30,000 39,448
Johnson Electric Holding 4,149 26,633
Samsung Electronics, GDR Non-Voting Shares, 144A 3,380 268,710
Samsung Electronics, GDR 1/2 Voting Shares, 144A 132 16,088
Varitronix International 200,000 457,966
VTech Holdings Ltd. 110,000 358,011
Yageo Corp. 1 6
----------
1,710,092
64
<PAGE>
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
--------- -----------
FURNITURE 0.14%
Lamex Holdings Ltd. 1,315,861 $ 31,316(*)
Lamex Holdings Ltd., Warrants 219,310 2,172(*)
----------
33,488
GROCERIES - WHOLESALE 0.45%
Guangnan Holdings Ltd. 10,000 444(*)
NG Fung Hong Ltd. 200,000 102,914
----------
103,358
HOTELS 0.23%
Shangri-La Asia Ltd. 46,020 52,097
HOUSEHOLD APPLIANCES 4.36%
Guangdong Kelon Electronics Holdings 900,000 683,090
Shenzhen Konka Electronic Holdings, Group B 426,132 323,429
----------
1,006,519
INTERNET 0.75%
Xin Net Corp. 35,000 173,908(*)
MOTOR VEHICLES & TRANSPORTATION 0.89%
Qingling Motors Co., Ltd., Class H 1,688,000 206,291
OFFICE SUPPLIES 0.63%
China First Pencil Company Ltd. 400,000 64,000(*)
Shanghai Hero Pen, Group B 429,885 80,818(*)
----------
144,818
PHARMACEUTICALS 0.00%
SIIC Medical Science and Technology Group Ltd. 3,937 1,026(*)
PHOTOGRAPHY 0.25%
China HK Photo Products Holdings 450,000 57,310
REAL ESTATE DEVELOPERS 5.48%
Amoy Properties Ltd. 13,080 11,021
China Resources Enterprise Ltd. 8,967 14,362
Great Eagle Holdings Ltd. 2,468 4,381
Hang Lung Development Co., Ltd. 6,007 6,800
Henderson Investment Ltd. 12,732 13,185
Henderson Land Development Co., Ltd. 7,783 50,061
Hysan Development Co., Ltd. 4,687 5,939
65
<PAGE>
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
--------- ----------
REAL ESTATE DEVELOPERS (CONT'D)
Lai Sun Development Co., Ltd. 40,000 $ 2,084(*)
New World Development Co. 109,618 246,776
Pacific Century Regional Development Ltd. 25,000 358,751(*)
Shum Yip Investment Ltd. 350,000 67,537
Silver Grant International Industries Ltd. 940,000 89,484(*)
Silver Grant International Industries, Warrants 94,000 3,386(*)
Sino Land Co., Ltd. 15,779 9,134
Sun Hung Kai Properties HK 35,852 373,578
Wheelock and Co., Ltd. 9,180 9,625
----------
1,266,104
RETAIL 2.29%
China Everbright-IHD Pacific Ltd. 140,000 114,363
Glorious Sun Enterprises Ltd. 984,000 370,258
Shanghai Friendship & Overseas Chinese, Group B 278,001 43,368(*)
----------
527,989
TELECOMMUNICATIONS 9.08%
China Telecom Ltd., ADR 7,000 899,937(*)
China Telecom Ltd., Class H 61,948 386,503
Hong Kong Telecommunications Ltd. 142,315 411,008
Korea Thrunet Co., Ltd., Class A 1,000 67,875(*)
Shanghai Posts & Telecommunications, Group B 428,976 78,931(*)
SK Telecom Company Ltd., ADR 3,090 118,579
SmarTone Telecommunications Holdings Ltd. 23,721 114,432
TS Telecom Ltd. 24,000 20,786(*)
----------
2,098,051
TEXTILE MILL PRODUCTS 0.05%
First Sign International Holdings 290,000 12,311
TRAFFIC SYSTEM MANAGEMENT 0.31%
Anhui Expressway Co., Ltd. 726,000 68,178
GZI Transport Ltd. 25,769 3,945
----------
72,123
UNIT INVESTMENT TRUST 0.30%
Cathay Investment Fund 350,000 68,167(*)
66
<PAGE>
CHINA REGION OPPORTUNITY FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
--------- ----------
UTILITIES 5.49%
Guangdong Electric Power Development Co., Group B 205,400 $ 95,652
Hong Kong & China Gas Co. 358,148 490,677
Huaneng Power International, Inc., ADR 35,000 369,687
Shandong Huaneng Power Company Ltd., ADR 72,600 313,088
----------
1,269,104
WATER TRANSPORTATION & SERVICES 4.14%
China International Marine Container, Group B 835,059 558,604
China Merchants Shekou Port Service Co., Ltd. 133,144 60,804
Cosco Pacific Ltd. 350,000 290,410
Guangzhou Shipyard International Co., Class H 100,000 6,561
Pacific Ports Co., Ltd. 300,000 40,908(*)
----------
957,287
----------
TOTAL COMMON STOCKS AND WARRANTS 22,155,983
----------
(cost $21,142,175)
PRINCIPAL
REPURCHASE AGREEMENT 4.73% AMOUNT
-----------
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette, 12/31/99,
2.50%, due 1/3/00, repurchase price
$1,092,121, collateralized by U.S. Treasury
securities held in a joint tri-party
repurchase account (cost $1,091,894) $ 1,091,894 1,091,894
----------
TOTAL INVESTMENTS 100.62% 23,247,877
----------
(cost $22,234,069)
Other assets and liabilities, net (0.62)% (142,849)
----------
NET ASSETS 100% $23,105,028
===========
See notes to portfolios of investments.
67
<PAGE>
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS 99.19% SHARES VALUE
--------- ---------
CHEMICALS & ALLIED PRODUCTS 8.90%
Albermarle Corp. 2,600 $ 49,888
Dow Chemical Co. 1,500 200,437
E.I. Du Pont de Nemours & Co. 9,330 614,614
Ecolab, Inc. 2,500 97,813
Praxair, Inc. 3,600 181,125
Rohm & Haas Co. 3,000 122,062
W. R. Grace & Co. 6,400 88,800(*)
----------
1,354,739
DIVERSIFIED MINING 2.40%
De Beers Consolidated Mines Ltd., ADR 12,600 364,612
FORESTRY 1.70%
Weyerhaeuser Co. 3,600 258,525
GOLD & SILVER MINING 1.72%
Barrick Gold Corp. 1,800 31,837
Battle Mountain Gold Co. 22,000 45,375(*)
ECU Silver Mining, Inc. 100,000 11,086(*)
ECU Silver Mining Inc., Warrants 50,000 0(*)
Homestake Mining 8,000 62,500
Newmont Mining Corp. 4,500 110,250
----------
261,048
METAL & MINERAL MINING 11.13%
Alcoa, Inc. 6,000 498,000
Cominco Ltd. 4,500 94,627
Diamondex Resources Ltd. 2,500 1,455(*)
Freeport McMoRan Copper & Gold, Inc., Class B 16,000 338,000(*)
Inco Ltd. 8,000 188,000(*)
Minco Mining & Metals Corp., Warrants 25,000 0(*)
Osmium Holdings S.A. (RS) 104 0(*)
Phelps Dodge Corp. 600 40,275
Reynolds Metals Co. 2,500 191,563
Rio Algom Ltd. 3,000 44,689
WMC Ltd. 40,000 220,752
Zimasco Consolidated Enterprises Ltd. (RS) 40,000 77,160
----------
1,694,521
NATURAL GAS PRODUCTION & DISTRIBUTION 4.78%
El Paso Energy Gas Co. 3,200 124,200
Enron Corp. 13,600 603,500
----------
727,700
68
<PAGE>
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
--------- ---------
OIL & GAS EXTRACTION 17.36%
Anadarko Petroleum Corp. 4,000 $136,500
Apache Corp. 1,000 36,938
BlackRock Ventures, Inc. 200,000 138,571(*)
Burlington Resources Canada 1,000 33,326(*)
Canadian Hunter Exploration Ltd. 3,500 57,594(*)
Conoco, Inc., Class B 10,700 266,163
Helmerich & Payne, Inc. 1,000 21,813
Hilton Petroleum Ltd. 10,000 18,361(*)
Ivanhoe Energy, Inc. 30,000 56,121(*)
Noble Affiliates, Inc. 3,500 75,031
Penn West Petroleum Ltd. 2,000 39,146(*)
Phillips Petroleum Co. 7,500 352,500
Richland Petroleum Corp., Class A 20,000 49,886(*)
Rio Alto Exploration Ltd. 3,000 42,403(*)
Rowan Companies, Inc. 3,000 65,063(*)
Schlumberger Ltd. 11,000 618,750
Sibir Energy plc 400,000 42,008(*)
Talisman Energy, Inc. 3,000 76,699(*)
Tanganyika Oil Co., Ltd. 50,000 62,357(*)
Tesoro Petroleum Corp. 2,500 28,906(*)
Transocean Sedco Forex, Inc. 2,134 71,889
Ulster Petroleums Ltd. 4,000 35,613(*)
Union Pacific Resources Group, Inc. 6,000 76,500
Unocal Corp. 6,000 201,375
Ventus Energy Ltd. 8,500 38,869(*)
----------
2,642,382
OIL & GAS FIELD MACHINERY 0.38%
Global Marine, Inc. 3,500 58,187(*)
OIL & GAS FIELD SERVICES 4.68%
Atlantic Richfield Co. 1,000 86,500
Baker Hughes, Inc. 11,000 231,687
Cooper Cameron Corp. 2,500 122,344(*)
Diamond Offshore Drilling, Inc. 1,000 30,563
ENSCO International, Inc. 3,000 68,625
Noble Drilling Corp. 1,000 32,750(*)
Weatherford International, Inc. 3,500 139,781(*)
----------
712,250
69
<PAGE>
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
--------- ---------
OIL & GAS INTEGRATED 3.84%
Amerada Hess Corp. 2,000 $113,500
EOG Resources, Inc. 1,700 29,856
Halliburton Co. 7,000 281,750
Kerr-Mcgee Corp. 2,000 124,000
Veteran Resources, Inc. 50,000 34,643(*)
----------
583,749
PAPER PRODUCTS 6.56%
Boise Cascade Corp. 2,500 101,250
Bowater, Inc. 1,000 54,313
Champion International Corp. 2,700 167,231
Georgia Pacific Group 3,400 172,550
International Paper Co. 4,500 253,969
Mead Corp. 2,000 86,875
Willamette Industries, Inc. 3,500 162,531
----------
998,719
PETROLEUM PRODUCTION & REFINING 35.05%
BP Amoco plc, ADR 5,000 296,563
Berkley Petroleum Corp. 5,000 43,823(*)
Chevron Corp. 8,000 693,000
Exxon Mobil Corp. 38,589 3,108,826
Royal Dutch Petroleum 5,000 302,188
Santa Fe International Corp. 1,000 25,875
Texaco, Inc. 7,800 423,637
Tosco Corp. 2,300 62,531
Total S.A., ADR 3,200 221,600
Ultramar Diamond Shamrock Corp. 2,000 45,375
USX-Marathon Group 4,500 111,094
----------
5,334,512
STEEL MANUFACTURING 0.69%
AK Steel Holding Corp. 2,700 50,963
Nucor Corp. 1,000 54,812
----------
105,775
----------
TOTAL COMMON STOCKS AND WARRANTS 15,096,719
----------
(cost $14,771,596)
70
<PAGE>
GLOBAL RESOURCES FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
RIGHTS 0.00% SHARES VALUE
------ -----------
CHEMICALS & ALLIED PRODUCTS 0.00%
IMC Global, Inc. Rights 3,800 $ 0
(cost $0)
PURCHASED OPTIONS 0.64% CONTRACTS
---------
OIL & GAS EXTRACTION 0.13%
Schlumberger Ltd., Strike Price 60,
Call, Expiration Jan. 2001
(premium $25,107) 15 19,875
OIL & GAS FIELD SERVICES 0.01%
Baker Hughes, Inc. Strike Price 30,
Call, Expiration Jan. 2001
(premium $2,890) 5 1,344
PETROLEUM PRODUCTION & REFINING 0.50%
Exxon Mobil Corp., Strike Price 80,
Call, Expiration Jan. 2001
(premium $54,688) 50 50,625
Exxon Mobil Corp., Strike Price 100,
Call, Expiration Jan. 2001
(premium $17,670) 15 25,688
----------
76,313
----------
TOTAL PURCHASED OPTIONS 97,532
----------
(cost $100,355)
PRINCIPAL
REPURCHASE AGREEMENT 0.70% AMOUNT
-----------
Joint Tri-Party Repurchase Agreement,
Donaldson, Lufkin & Jenrette, 12/31/99,
2.50%, due 1/3/00, repurchase price
$107,091, collateralized by U.S. Treasury
securities held in a joint tri-party
repurchase account (cost $107,069) $107,069 107,069
----------
TOTAL INVESTMENTS 100.53% 15,301,320
(cost $14,979,020)
Other assets and liabilities, net (0.53)% (80,286)
-----------
NET ASSETS 100% $15,221,034
===========
See notes to portfolios of investments.
71
<PAGE>
WORLD GOLD FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS 92.61% SHARES VALUE
------- ----------
DIAMOND MINING & EXPLORATION 3.23%
Aber Resources Ltd. 29,400 $ 183,330(*)
DIA Met Minerals Ltd., Class B 40,000 637,428(*)
De Beers Centenary, Linked Units 39,600 1,145,923
SouthernEra Resources Ltd. 150,000 223,446(*)
Star Resources Corp. 1,807,400 425,772(*)(+)
----------
2,615,899
GOLD/MINERAL EXPLORATION & DEVELOPMENT 11.86%
AMT International Mining Corp 1,976,350 95,853(*)(+)
Ancash Resources, Special Warrants (RS) 800,000 0(*)(+)
Anooraq Resource Corp. 150,000 108,086(*)(+)
Anooraq Resources, Units (RS) 150,000 127,832(*)(+)
Argosy Minerals, Inc. 823,720 85,608(*)
Augusta Resource Corp. 990,987 343,306(*)(+)
Balaclava Mines, Inc. 400,000 47,114(*)
Ballarat Goldfields NL 1,043,100 106,224(*)
Canarc Resource Corp. 750,000 114,321(*)
Centaur Mining & Exploration Ltd. 1,000,000 147,825(*)
Chilean Gold Ltd. (RS) 500,000 0(*)
Colony Pacific Explorations Ltd., Warrants 50,000 0(*)
Comaplex Minerals Corp. 100,000 103,929(*)
Continental Precious Minerals, Inc. 200,000 52,657(*)
Cream Minerals Ltd. 200,000 19,400(*)
Cream Minerals Ltd., Warrants 200,000 0(*)
ECU Silver Mining, Inc. 700,000 77,600(*)
ECU Silver Mining, Inc., Warrants 350,000 0(*)
Elkhorn Gold Mining Corp. 200,000 8,314(*)
Far West Mining Ltd. 200,000 110,857(*)
Fischer Watt Gold, Inc. 940,600 75,248(*)
General Minerals Corp. 99,200 32,991(*)
Gitennes Exploration, Inc. 200,000 22,171(*)
Glencar Mining plc 872,438 398,211(*)
Gold Corp. of Africa Ltd. (RS) 195,000 24,375(*)(+)
Great Basin Gold Ltd. 200,000 408,785(*)
Great Basin Gold Ltd., Warrants 100,000 114,321
Highgrade Ventures Ltd. 300,000 62,357(*)
LionOre Mining International Ltd. 175,000 200,062(*)
Madison Enterprises Corp. 250,000 79,679(*)
Manhattan Minerals Corp. 185,000 672,937(*)
Miranda Mining (RS) 1,600,000 1,019,663(*)
Moydow Mines International, Inc. 285,000 365,309(*)(+)
Moydow Mines International, Inc. Units (RS) 200,000 256,357(*)(+)
Nevsun Resources 505,000 139,957(*)
Norcal Resources Ltd. 470,000 19,539(*)
Nuinsco Resources Ltd. 100,000 41,571(*)
Opawica Explorations, Inc. 400,000 138,571(*)
Orezone Resources, Inc. 1,016,000 175,986(*)(+)
72
<PAGE>
WORLD GOLD FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
--------- -----------
GOLD/MINERAL EXPLORATION &
DEVELOPMENT (CONT'D)
Orezone Resources, Inc., Warrants 275,000 $ 0(*)(+)
Ormonde Mining plc 3,607,143 261,363(*)(+)
Osmium Holdings S.A. (RS) 891 0(*)
Patrician Gold Mines Ltd. 602,000 8,342(*)
Platexco, Inc. 100,000 273,678(*)
Platexco, Inc., Warrants 50,000 6,929(*)
Platinova A/S 63,300 5,263(*)
Platinova Resources Ltd.,
Special Shares 36,700 2,797(*)
Red Back Mining NL 1,000,000 183,960(*)
Romarco Minerals, Inc. 1,500,000 1,018,499(*)(+)
Solitario Resources Corp. 459,522 332,710(*)
Tenke Mining Corp. 200,000 116,400(*)
Western Exploration & Development,
Special Warrants (RS) 600,000 255,000(*)(+)
Yamana Resources, Inc. 330,000 96,030(*)
Zimasco Consolidated
Enterprises Ltd. (RS) 350,000 675,150
Zimbabwe Platinum Mines Ltd. 1,266,534 582,479(*)
----------
9,615,616
INTERMEDIATE & JUNIOR GOLD
PRODUCERS 19.39%
Dayton Mining Corp. 31,068,000 85,440(*)(+)
Delta Gold NL 3,900,000 5,957,348
Geomaque Explorations Ltd. 200,000 73,443(*)
IAMGOLD 1,431,900 3,224,330(*)
Kinross Gold Corp. 600,000 1,114,178(*)
Ranger Minerals Ltd. 1,600,000 2,312,640(*)
Resolute Ltd. 1,500,000 384,345
Viceroy Resource Corp. 140,300 81,655(*)
Vista Gold Corp. 834,300 83,817(*)
----------
15,717,196
MINING FINANCE 7.19%
Franco-Nevada Mining Corp., Ltd. 250,000 3,836,694
Franco-Nevada Mining Corp., Ltd.,
Warrants (September, 2003) 200,000 1,524,285(*)
Franco-Nevada Mining Corp., Ltd.,
Warrants (November, 2003) 35,000 466,812(*)
----------
5,827,791
OIL & GAS EXTRACTION 0.67%
Blackrock Ventures, Inc. 261,600 181,251(*)
Ivanhoe Energy, Inc. 187,250 350,291(*)
New Zealand Oil & Gas Ltd. 36,363 9,556(*)
----------
541,098
73
<PAGE>
WORLD GOLD FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
--------- ----------
SENIOR GOLD PRODUCERS 50.27%
AGSM Preference Stock 203,932 $ 352,802
Ashanti Goldfields Co., Ltd., GDR 518,200 1,360,275(*)
Aurora Gold Ltd. 112,389 25,475(*)
Barrick Gold Corp. 296,000 5,235,500
Battle Mountain Gold Co. 578,750 1,193,672(*)
Crystallex International Corp. 124,100 171,984(*)
Durban Roodepoort Deep Ltd. 333,400 593,891(*)
Durban Roodepoort Deep Ltd.,
Sponsored ADR 189,000 336,647(*)
Eldorado Gold Corp. 500,000 346,428(*)
Freeport-McMoran Copper & Gold, Inc.,
Class B 240,000 5,070,000(*)
Glamis Gold Ltd. 800,000 1,441,142(*)
Goldcorp, Inc., Class A,
Subordinate Voting Shares 750,000 4,390,979(*)
Goldcorp, Inc., Warrants 375,000 863,906(*)
Golden Star Resources Ltd. 700,000 656,250(*)
Golden Star Resources Ltd., Warrants 500,000 119,000(*)
Homestake Mining 700,000 5,468,750
Ivanhoe Mines Ltd. 475,400 339,266(*)
Lihir Gold Ltd. 440,000 320,879(*)
Newmont Mining Corp. 230,000 5,635,000
Newcrest Mining Ltd. 200,000 683,280(*)
Normandy Mining Ltd. 1,900,000 1,348,164
Otter Gold Mines Ltd. 400,000 170,820(*)
Otter Gold Mines Ltd.,
Warrants (October, 2001) 50,000 0(*)
Otter Gold Mines Ltd.,
Warrants (October, 2003) 200,000 8,672(*)
Placer Dome, Inc. 430,000 4,622,433
----------
40,755,215
----------
TOTAL COMMON STOCKS AND WARRANTS 75,072,815
----------
(cost $89,579,521)
PURCHASED OPTIONS 3.19% CONTRACTS
---------
SENIOR GOLD PRODUCERS 3.19%
Barrick Gold Corp., Strike Price 20, Call,
Expiration Jan. 2000 (premium $249,150) 550 13,750
Barrick Gold Corp., Strike Price 22.50, Call,
Expiration Jan. 2000 (premium $7,248) 16 100
Barrick Gold Corp., Strike Price 25, Call,
Expiration Jan. 2000 (premium $244,063) 625 3,906
Barrick Gold Corp., Strike Price 30, Call,
Expiration Jan. 2000 (premium $19,695) 65 406
Homestake Mining, Strike Price 10, Call,
Expiration Jan. 2000 (premium $139,000) 500 9,375
Homestake Mining, Strike Price 12.50, Call,
Expiration Jan. 2000 (premium $167,425) 600 3,750
74
<PAGE>
WORLD GOLD FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
PURCHASED OPTIONS CONTRACTS VALUE
--------- ----------
SENIOR GOLD PRODUCERS (CONT'D)
Newmont Mining Corp., Strike Price 10, Call,
Expiration Jan. 2001 (premium $338,400) 300 $ 453,750
Newmont Mining Corp., Strike Price 20, Call,
Expiration Jan. 2000 (premium $987,475) 1,450 1,205,385
Newmont Mining Corp., Strike Price 25, Call,
Expiration Jan. 2000 (premium $298,375) 500 50,000
Placer Dome, Inc., Strike Price 10, Call,
Expiration Jan. 2001 (premium $453,000) 1,000 318,800
Placer Dome, Inc., Strike Price 12.50, Call,
Expiration Jan. 2000 (premium $450,750) 1,500 28,125
Placer Dome, Inc., Strike Price 12.50, Call,
Expiration Jan. 2001 (premium $943,625) 2,250 499,275
Placer Dome, Inc., Strike Price 17.50, Call,
Expiration Jan. 2000 (premium $528,435) 1,520 0
----------
TOTAL PURCHASED OPTIONS 2,586,622
----------
(cost $4,826,641)
TOTAL INVESTMENTS 95.80% 77,659,437
----------
(cost $94,406,162)
Other assets and liabilities, net 4.20% 3,408,705
----------
NET ASSETS 100% $81,068,142
==========
See notes to portfolios of investments.
75
<PAGE>
GOLD SHARES FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS 95.07% SHARES VALUE
--------- ----------
DIAMOND MINING & EXPLORATION 7.11%
Aber Resources Ltd. 57,400 $ 357,930(*)
De Beers Centenary, Linked Units 11,300 326,993
De Beers Consolidated Mines, ADR 27,400 792,887
DIA Met Minerals Ltd., Class B 60,000 956,142(*)
----------
2,433,952
DIVERSIFIED OPERATIONS 3.28%
Anglovaal Mining Ltd. 75,800 660,094
Impala Platinum Holdings Ltd. 8,500 343,867
Ivanhoe Energy, Inc. 62,450 116,826(*)
----------
1,120,787
GOLD MINING - AFRICA 25.46%
Anglogold Ltd., ADR 47,400 1,217,587
ASA Ltd. 10,000 189,375
Ashanti Goldfields, GDR 180,800 474,600
Avgold Ltd. 300,000 207,149(*)
Durban Roodepoort Deep Ltd. 235,800 420,034(*)
Durban Roodepoort Deep Ltd., ADR 136,000 242,243(*)
Gencor Ltd. 60,000 260,764
Gold Fields Ltd. 502,468 2,276,821
Gold Fields Ltd., ADR 20,000 90,624
Goldfields South Africa 200,000 487,506(*)
Harmony Gold Mining 370,934 2,329,924
Western Areas Gold Mining, ADR 63,000 235,431(*)
Western Areas Ltd. 35,900 134,151(*)
Zimbabwe Platinum Mines Ltd. 318,399 146,432(*)
----------
8,712,641
GOLD MINING - AUSTRALIA 9.52%
Centaur Mining & Exploration Ltd. 300,000 44,348(*)
Delta Gold NL 1,200,000 1,833,030
Lihir Gold Ltd. 160,000 116,683(*)
Newcrest Mining Ltd. 80,000 273,312(*)
Normandy Mining Ltd. 665,579 472,268
Randfontein Estates Ltd. 121,900 170,323
Ranger Minerals Ltd. 152,713 220,731(*)
Resolute Resources Ltd. 500,000 128,115
----------
3,258,810
76
<PAGE>
GOLD SHARES FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS SHARES VALUE
--------- ----------
GOLD MINING - NORTH AMERICA 49.70%
Agnico Eagle Mines Ltd. 5,800 $ 42,597
Barrick Gold Corp. 151,100 2,672,581
Battle Mountain Gold Co. 216,250 446,016(*)
Dayton Mining Corp. 11,250,000 900,000(*)
ECU Silver Mining, Inc. 200,000 22,171(*)
ECU Silver Mining, Inc., Warrants 100,000 0
Franco-Nevada Mining Corp., Ltd. 79,150 1,214,697
Franco-Nevada Mining Corp., Ltd.,
Warrants (September, 2003) 50,000 381,071(*)
Franco Nevada Mining Corp., Ltd.,
Warrants (November, 2003) 6,000 80,025(*)
Freeport-McMoRan Copper & Gold, Inc.,
Class B 120,000 2,535,000(*)
Goldcorp, Inc., Class A Subordinate
Voting Shares 250,000 1,463,660(*)
Goldcorp, Inc., Warrants 125,000 287,969(*)
Homestake Mining 230,000 1,796,875
IAMGOLD 100,000 225,178(*)
Ivanhoe Mines Ltd. 158,400 113,041(*)
Kinross Gold Corp. 200,000 371,393(*)
Newmont Mining Corp. 94,500 2,315,250
Placer Dome, Inc. 167,400 1,799,512
Romarco Minerals, Inc. 500,000 339,500(*)
----------
17,006,536
----------
TOTAL COMMON STOCKS AND WARRANTS 32,532,726
----------
(cost $33,443,124)
PURCHASED OPTIONS 2.68% CONTRACTS
---------
GOLD MINING - NORTH AMERICA 2.68%
Barrick Gold Corp., Strike Price 20, Call,
Expiration Jan. 2000 (premium $90,600) 200 5,000
Barrick Gold Corp., Strike Price 25, Call,
Expiration Jan. 2000 (premium $177,678) 455 2,844
Barrick Gold Corp., Strike Price 30, Call,
Expiration Jan. 2000 (premium $10,605) 35 219
Homestake Mining, Strike Price 10, Call,
Expiration Jan. 2000 (premium $55,600) 200 3,750
Homestake Mining, Strike Price 12.50, Call,
Expiration Jan. 2001 (premium $69,500) 250 1,563
Newmont Mining Corp., Strike Price 10, Call,
Expiration Jan. 2001 (premium $112,800) 100 151,250
Newmont Mining Corp., Strike Price 20, Call,
Expiration Jan. 2001 (premium $381,025) 550 457,215
77
<PAGE>
GOLD SHARES FUND
- --------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
PURCHASED OPTIONS CONTRACTS VALUE
--------- ----------
GOLD MINING - NORTH AMERICA (CONT'D)
Newmont Mining Corp., Strike Price 25, Call,
Expiration Jan. 2000 (premium $150,750) 250 $25,000
Placer Dome, Inc., Strike Price 10, Call,
Expiration Jan. 2001 (premium $147,150) 300 95,640
Placer Dome, Inc., Strike Price 12 50, Call,
Expiration Jan. 2000 (premium $155,250) 500 9,375
Placer Dome, Inc., Strike Price 12 50, Call,
Expiration Jan. 2001 (premium $327,875) 750 166,425
Placer Dome, Inc., Strike Price 17 50, Call,
Expiration Jan. 2000 (premium $568,065) 1,480 0
-----------
TOTAL PURCHASED OPTIONS 918,281
-----------
(cost $2,246,898)
TOTAL INVESTMENTS 97.75% 33,451,007
-----------
(cost $35,690,022)
Other assets and liabilities, net 2.25% 770,926
-----------
NET ASSETS 100% $34,221,933
===========
See notes to portfolios of investments.
78
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIOS OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
LEGEND
(*) Non-income producing security GDR Global Depository Receipt
(+) Affiliated company (see following) RS Restricted Security
ADR American Depository Receipt (see following)
GO General Obligation Bond ZCB Zero Coupon Bond
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 12/31/99.
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, 1999 were:
Donaldson, Lufkin & Jenrette repurchase agreement, 12/31/99, 2.50%, due 1/3/00:
(with a market value of $32,526,370)
$22,144,000 U.S. Treasury Bill, 0.00%, 3/30/00
$11,037,000 U.S. Treasury Bond, 6.375%, 8/15/27
Total principal amount: $32,146,558; Total repurchase value: $32,153,255
Morgan Stanley Dean Witter repurchase agreement, 12/31/99, 2.50%, due 1/3/00:
(with a market value of $20,286,589)
$17,944,000 U.S. Treasury Bond, 10.75%, 5/15/03
Total principal amount: $20,000,000; Total repurchase value: $20,004,169
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.
79
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIOS OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
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, 1999.
SHARES OF AFFILIATED COMPANIES
----------------------------------------------------
WORLD GOLD DECEMBER 31,
JUNE 30, 1999 ADDITIONS REDUCTIONS 1999
------------- --------- --------- ------------
AMT International
Mining Corp. 2,126,350 -- (150,000) 1,976,350
Ancash Resources (RS) 800,000 -- -- 800,000
Anooraq Resources Corp. -- 150,000 -- 150,000
Anooraq Resources Corp.,
Units (RS) -- 150,000 -- 150,000
Augusta Resource Corp. 798,773 192,214 -- 990,987
Dayton Mining Corp. 31,068,000 -- -- 31,068,000
Gold Corp. of Africa (RS) 195,000 -- -- 195,000
Moydow Mines
International, Inc. 300,000 85,000 (100,000) 285,000
Moydow Mines Interna-
tional, Inc., Units (RS) -- 200,000 -- 200,000
Orezone Resources, Inc. 466,000 550,000 -- 1,016,000
Orezone Resources, Inc.,
Special Warrants (RS) 550,000 -- (550,000) --
Ormonde Mining plc 3,607,143 -- -- 3,607,143
Romarco Minerals, Inc. -- 1,500,000 -- 1,500,000
Star Resources Corp. 1,976,400 -- (169,000) 1,807,400
Western Exploration &
Development Ltd. (RS) 600,000 -- -- 600,000
At December 31, 1999, the value of investments in affiliated companies was
$5,943,178, representing 7.33% of net assets, and the total cost was $8,291,592.
Net realized losses on transactions were $76,381 and there was no income earned
for the period.
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.
SECURITY ACQUISITION COST PER
GLOBAL RESOURCES DATE SHARE
--------------------------------------- ----------------- --------
COMMON STOCKS AND WARRANTS
Osmium Holdings S.A 10/22/96-01/29/98 $ 987.07
Zimasco Consolidated Enterprises Ltd. 06/15/95 $ 2.50
At December 31, 1999, the total cost of restricted securities was $202,655, and
the total value was $77,160, representing 0.51% of net assets.
80
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO PORTFOLIOS OF INVESTMENTS December 31, 1999
- --------------------------------------------------------------------------------
SECURITY ACQUISITION COST PER
GLOBAL RESOURCES DATE SHARE
--------------------------------------- ----------------- ---------
COMMON STOCKS AND WARRANTS
Chilean Gold Ltd. 01/17/97 $1.10
Gold Corp. of Africa Ltd. 08/14/97-11/14/97 $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
Anooraq Resources 12/17/99 $0.58
Moydow Mines International, Inc. 11/16/99 $1.16
Western Exploration & Development 08/14/97 $0.50
At December 31, 1999, the total cost of restricted securities was $5,821,506,
and the total value was $2,358,377, representing 2.91% of net assets.
81
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
U.S. TREASURY U.S. GOVERNMENT
SECURITIES SECURITIES
CASH FUND SAVINGS FUND
------------ ------------
Investments, at identified cost $ 146,199,592 $ 783,027,714
============= =============
ASSETS
Investments, at value:
Securities $ 99,947,986 $ 783,027,714
Repurchase agreements 46,251,606 --
Cash -- 417,902
Receivables:
Investments sold 43,282,897 18,312,889
Dividends -- --
Interest 181,265 8,311,429
Capital shares sold 4,312,548 2,105,735
From manager -- --
Other assets 235,171 57,817
------------- -------------
TOTAL ASSETS 194,211,473 812,233,486
============= =============
LIABILITIES
Payables:
Investments purchased 46,251,606 26,997,211
Capital shares redeemed 1,343,400 3,830,927
To manager and affiliates 59,588 29,641
Dividends and distributions 529,195 3,699,370
Accounts payable and accrued
expenses 71,854 113,955
Due to custodian -- --
------------- -------------
TOTAL LIABILITIES 48,255,643 34,671,104
------------- -------------
NET ASSETS $ 145,955,830 $ 777,562,382
============= =============
NET ASSETS CONSIST OF:
Paid-in capital $ 145,882,756 $ 778,469,668
Undistributed net investment
income (loss) 91,262 720,898
Accumulated net realized gain (loss) on
investments and foreign currencies (18,188) (1,628,184)
Net unrealized appreciation
(depreciation) of investments and
other assets and liabilities
denominated in foreign currencies -- --
------------- -------------
Net assets applicable to capital shares
outstanding $ 145,955,830 $ 777,562,382
============= =============
Capital shares outstanding, and un-
limited number of no par shares
authorized 145,932,385 777,619,496
============= =============
NET ASSET VALUE, PER SHARE $ 1.00 $ 1.00
============= =============
See accompanying notes to financial statements.
82
<PAGE>
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY
NEAR-TERM TAX FREE INCOME ALL AMERICAN
TAX FREE FUND FUND FUND EQUITY FUND
---------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
Investments, at identified cost $6,840,203 $20,080,444 $7,703,749 $28,422,988
========== =========== ========== ===========
ASSETS
Investments, at value:
Securities $6,526,972 $18,487,699 $9,026,003 $51,599,482
Repurchase agreements 252,546 460,252 220,701 901,662
Cash -- -- -- --
Receivables:
Investments sold 314,800 604,160 381,013 1,436,505
Dividends -- -- 12,347 39,238
Interest 114,286 274,792 299 397
Capital shares sold 100 382 9,496 30,364
From manager 17,200 9,628 -- --
Other assets 1,456 1,540 1,451 2,909
---------- ----------- ---------- -----------
TOTAL ASSETS 7,227,360 19,838,453 9,651,310 54,010,557
---------- ----------- ---------- -----------
LIABILITIES
Payables:
Investments purchased 252,546 460,252 252,449 1,007,650
Capital shares redeemed -- 90,200 9,311 82,255
To manager and affiliates -- -- 9,924 15,385
Dividends and distributions 25,995 148,699 -- 794,221
Accounts payable and accrued 16,670 17,234 20,248 21,804
expenses 61,996 53,731 -- --
Due to custodian 357,207 770,116 291,932 1,921,315
---------- ----------- ---------- -----------
$6,870,153 $19,068,337 $9,359,378 $52,089,242
NET ASSETS ========== =========== ========== ===========
NET ASSETS CONSIST OF:
Paid-in capital $7,162,581 $20,400,014 $7,797,296 $28,370,350
Undistributed net investment
income (loss) 8,836 13,504 (37,438) 5,042
Accumulated net realized gain (loss) on
investments and foreign currencies (240,579) (212,688) 54,668 (364,306)
Net unrealized appreciation
(depreciation) of investments and
other assets and liabilities
denominated in foreign currencies (60,685) (1,132,493) 1,544,852 24,078,156
---------- ----------- ---------- -----------
Net assets applicable to capital shares
outstanding $6,870,153 $19,068,337 $9,359,378 $52,089,242
========== =========== ========== ===========
Capital shares outstanding, and un-
limited number of no par shares
authorized 665,896 1,706,208 722,028 1,130,907
========== =========== ========== ===========
NET ASSET VALUE, PER SHARE $ 10.32 $ 11.18 $ 12.96 $ 46.06
========== =========== ========== =========== 83
</TABLE>
83
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
REAL ESTATE CHINA REGION
FUND OPPORTUNITY FUND
----------- ------------
Investments, at identified cost $ 5,895,439 $ 22,234,069
=========== ============
ASSETS
Investments, at value:
Securities $ 4,779,354 $ 22,155,983
Repurchase agreements 569,202 1,091,894
Cash 47,444 --
Receivables:
Investments sold 523,392 1,208,213
Dividends 37,194 2,415
Interest 118 228
Capital shares sold 379 108,048
Other assets 2,252 11,311
----------- ------------
TOTAL ASSETS 5,959,335 24,578,092
----------- ------------
LIABILITIES
Payables:
Investments purchased 629,128 1,297,568
Capital shares redeemed 890 53,364
To manager and affiliates 7,456 37,857
Accounts payable and accrued expenses 26,875 67,431
Due to custodian -- 16,844
------------
TOTAL LIABILITIES 664,349 1,473,064
----------- ------------
NET ASSETS $ 5,294,986 $ 23,105,028
=========== ============
NET ASSETS CONSIST OF:
Paid-in capital $ 7,468,597 $ 34,590,678
Undistributed net investment income (loss) 52,051 9,771
Accumulated net realized (loss) on investments
and foreign currencies (1,679,224) (12,509,251)
Net unrealized appreciation (depreciation) of
investments and other assets and
liabilities denominated in foreign
currencies (546,438) 1,013,830
----------- ------------
Net assets applicable to capital shares
outstanding $ 5,294,986 $ 23,105,028
=========== ============
Capital shares outstanding, and unlimited
number of no par shares authorized 643,765 3,863,058
=========== ============
NET ASSET VALUE, PER SHARE $ 8.23 $ 5.98
=========== ============
See accompanying notes to financial statements.
84
<PAGE>
- --------------------------------------------------------------------------------
December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GLOBAL RESOURCES WORLD GOLD GOLD SHARES
FUND FUND FUND
------------ ------------- -------------
<S> <C> <C> <C>
Investments, at identified cost $ 14,979,020 $ 94,406,162 $ 35,690,022
============ ============= =============
ASSETS
Investments, at value:
Securities $ 15,194,251 $ 77,659,437 $ 33,451,007
Repurchase agreements 107,069 -- --
Cash -- -- 34,999
Receivables:
Investments sold 123,002 5,395,032 2,166,509
Dividends 9,265 3,534 --
Interest 21 1,200 --
Capital shares sold 1,839 152,182 52,913
Other assets 4,431 35,656 37,625
------------ ------------- -------------
TOTAL ASSETS 15,439,878 83,247,041 35,743,053
------------ ------------- -------------
LIABILITIES
Payables:
Investments purchased 107,069 100,810 --
Capital shares redeemed 17,923 1,669,864 1,246,478
To manager and affiliates 28,574 115,489 83,961
Accounts payable and accrued expenses 65,278 84,397 190,681
Due to custodian -- 208,339 --
-------------
TOTAL LIABILITIES 218,844 2,178,899 1,521,120
------------ ------------- -------------
NET ASSETS $ 15,221,034 $ 81,068,142 $ 34,221,933
============ ============= =============
NET ASSETS CONSIST OF:
Paid-in capital $ 24,556,900 $ 147,010,454 $ 233,407,437
Undistributed net investment income (loss) (170,090) 2,934,007 (989,080)
Accumulated net realized (loss) on investments
and foreign currencies (9,488,080) (52,138,434) (195,961,114)
Net unrealized appreciation (depreciation) of
investments and other assets and
liabilities denominated in foreign
currencies 322,304 (16,737,885) (2,235,310)
------------ ------------- -------------
Net assets applicable to capital shares
outstanding $ 15,221,034 $ 81,068,142 $ 34,221,933
============ ============= =============
Capital shares outstanding, and unlimited
number of no par shares authorized 3,861,397 9,901,310 9,205,195
============ ============= =============
NET ASSET VALUE, PER SHARE $ 3.94 $ 8.19 $ 3.72
============ ============= =============
</TABLE>
85
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
U.S. TREASURY U.S. GOVERNMENT
SECURITIES SECURITIES
CASH FUND SAVINGS FUND
----------- ------------
NET INVESTMENT INCOME
INCOME:
Dividends $ -- $ --
Foreign taxes withheld on dividends -- --
----------- ------------
Net dividends -- --
Interest and other 3,685,636 21,645,421
----------- ------------
TOTAL INCOME 3,685,636 21,645,421
EXPENSES:
Management fee 369,178 1,685,393
Transfer agent fees and expenses 172,486 396,847
Accounting service fees and expenses 20,584 51,126
Legal and professional fees 15,918 36,092
Custodian fees 80,506 57,798
Shareholder reporting 57,744 113,560
Registration fees 28,537 26,275
Trustee's fees and expenses 7,869 7,653
Interest Expense 1,519 549
Miscellaneous 33,903 39,379
----------- ------------
Total expenses before reductions 788,244 2,414,672
Short-term trading fee -- --
Expenses offset (3,750) (5,907)
Expenses reimbursed -- (813,499)
----------- ------------
NET EXPENSES 784,494 1,595,266
NET INVESTMENT INCOME (LOSS) 2,901,142 20,050,155
----------- ------------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities -- 1,208
Foreign currency transactions -- --
----------- ------------
NET REALIZED GAIN (LOSS) -- 1,208
----------- ------------
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 -- 1,208
----------- ------------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ 2,901,142 $ 20,051,363
=========== ============
See accompanying notes to financial statements.
86
<PAGE>
- --------------------------------------------------------------------------------
For the Six Months Ended December 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEAR-TERM EQUITY
TAX FREE TAX FREE INCOME ALL AMERICAN
FUND FUND FUND EQUITY FUND
--------- ----------- --------- -----------
<S> <C> <C> <C> <C>
NET INVESTMENT INCOME
INCOME:
Dividends $ -- $ -- $ 82,931 $ 271,506
Foreign taxes withheld on dividends -- -- (363) (393)
--------- ----------- --------- -----------
Net dividends -- -- 82,568 271,113
Interest and other 177,466 603,944 9,283 85,235
--------- ----------- --------- -----------
TOTAL INCOME 177,466 603,944 91,851 356,348
EXPENSES:
Management fee 18,614 83,262 35,211 196,813
Transfer agent fees and expenses 4,475 14,564 18,433 63,018
Accounting service fees and expenses 20,579 20,579 20,581 20,587
Legal and professional fees 11,789 11,729 17,387 30,381
Custodian fees 6,781 7,306 8,291 11,426
Shareholder reporting 1,296 3,905 4,979 21,990
Registration fees 5,572 7,168 7,840 9,653
Trustee's fees and expenses 7,807 7,655 7,869 7,869
Interest Expense 1 6 -- 7
Miscellaneous 3,414 3,866 3,452 6,373
--------- ----------- --------- -----------
Total expenses before reductions 80,328 160,040 124,043 368,117
Short-term trading fee -- -- -- (7)
Expenses offset (162) (56) (43) (402)
Expenses reimbursed (54,152) (82,501) -- (109,334)
--------- ----------- --------- -----------
NET EXPENSES 26,014 77,483 124,000 258,374
--------- ----------- --------- -----------
NET INVESTMENT INCOME (LOSS) 151,452 526,461 (32,149) 97,974
--------- ----------- --------- -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities (40,068) (213,321) 174,807 (152,512)
Foreign currency transactions -- -- (375) (836)
--------- ----------- --------- -----------
NET REALIZED GAIN (LOSS) (40,068) (213,321) 174,432 (153,348)
--------- ----------- --------- -----------
Net change in unrealized appreciation
(depreciation) of:
Investments (61,500) (878,974) 137,373 2,323,148
Other assets and liabilities
denominated in foreign currencies -- -- -- --
--------- ----------- --------- -----------
NET UNREALIZED APPRECIATION
(DEPRECIATION) (61,500) (878,974) 137,373 2,323,148
--------- ----------- --------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (101,568) (1,092,295) 311,805 2,169,800
--------- ----------- --------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ 49,884 $ (565,834) $ 279,656 $ 2,267,774
========= =========== ========= ===========
</TABLE>
87
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
CHINA REGION
REAL ESTATE OPPORTUNITY
FUND FUND
----------- -----------
NET INVESTMENT INCOME
INCOME:
Dividends $ 170,656 $ 250,430
Foreign taxes withheld on dividends (2,745) (307)
----------- -----------
Net dividends 167,911 250,123
Interest and other 16,630 60,391
----------- -----------
TOTAL INCOME 184,541 310,514
EXPENSES:
Management fee 22,616 143,190
Transfer agent fees and expenses 21,919 75,956
Accounting service fees and expenses 20,604 20,655
Legal and professional fees 18,517 47,662
Custodian fees 10,146 29,676
Shareholder reporting 6,537 19,676
Registration fees 6,309 8,588
Trustee's fees and expenses 7,678 7,869
Interest Expense 11 28
Miscellaneous 5,028 10,331
----------- -----------
Total expenses before reductions 119,365 363,631
Short-term trading fee (11) (28)
Expenses offset (112) (34)
Expenses reimbursed -- --
----------- -----------
NET EXPENSES 119,242 363,569
----------- -----------
NET INVESTMENT INCOME (LOSS) 65,299 (53,055)
----------- -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities (1,074,822) (1,557,643)
Foreign currency transactions (2,200) 12
----------- -----------
NET REALIZED GAIN (LOSS) (1,077,022) (1,557,631)
----------- -----------
Net change in unrealized appreciation
(depreciation) of:
Investments 180,734 2,553,068
Other assets and liabilities
denominated in foreign currencies 447 (4)
----------- -----------
NET UNREALIZED APPRECIATION
(DEPRECIATION) 181,181 2,553,064
----------- -----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS (895,841) 995,433
----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ (830,542) $ 942,378
=========== ===========
See accompanying notes to financial statements.
88
<PAGE>
- --------------------------------------------------------------------------------
For the Six Months Ended December 31, 1999
- --------------------------------------------------------------------------------
GLOBAL
RESOURCES WORLD GOLD GOLD SHARES
FUND FUND FUND
----------- ----------- -----------
NET INVESTMENT INCOME
INCOME:
Dividends $ 151,435 $ 502,816 $ 250,541
Foreign taxes withheld
on dividends (249) (11,479) (5,071)
----------- ----------- -----------
Net dividends 151,186 491,337 245,470
Interest and other 8,085 27,650 29,020
----------- ----------- -----------
TOTAL INCOME 159,271 518,987 274,490
EXPENSES:
Management fee 81,410 432,827 129,004
Transfer agent fees and
expenses 89,704 287,237 456,717
Accounting service fees and
expenses 20,637 32,991 28,515
Legal and professional fees 50,541 78,752 53,796
Custodian fees 13,277 64,726 58,996
Shareholder reporting 28,327 81,480 157,845
Registration fees 20,937 22,914 29,604
Trustee's fees and expenses 7,649 7,686 7,676
Interest Expense 4 514 266
Miscellaneous 10,551 60,602 77,450
----------- ----------- -----------
Total expenses before
reductions 323,037 1,069,729 999,869
Short-term trading fee (4) (514) (266)
Expenses offset (547) -- --
Expenses reimbursed -- -- --
----------- ----------- -----------
NET EXPENSES 322,486 1,069,215 999,603
----------- ----------- -----------
NET INVESTMENT INCOME (LOSS) (163,215) (550,228) (725,113)
----------- ----------- -----------
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
Realized gain (loss) from:
Securities 190,711 5,107,950 1,061,044
Foreign currency
transactions (2,008) (118,112) (13,320)
----------- ----------- -----------
NET REALIZED GAIN (LOSS) 188,703 4,989,838 1,047,724
----------- ----------- -----------
Net change in unrealized
appreciation (depre-
ciation) of:
Investments (357,464) 165,926 2,062,375
Other assets and liabili-
ties denominated in
foreign currencies 2 9,350 (93)
----------- ----------- -----------
NET UNREALIZED APPRECIATION
(DEPRECIATION) (357,462) 175,276 2,062,282
----------- ----------- -----------
NET REALIZED AND UNREALIZED GAIN
(LOSS) ON INVESTMENTS (168,759) 5,165,114 3,110,006
----------- ----------- -----------
NET INCREASE (DECREASE) IN NET
ASSETS RESULTING FROM OPERATIONS $ (331,974) $ 4,614,886 $ 2,384,893
=========== =========== ===========
89
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
U.S. TREASURY SECURITIES
CASH FUND
-----------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1999 JUNE 30, 1999
----------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income $ 2,901,142 $ 6,781,837
Net realized gain (loss) -- (10,657)
Net unrealized (depreciation) -- --
--------------- ---------------
NET INCREASE IN NET ASSETS
FROM INVESTMENT OPERATIONS 2,901,142 6,771,180
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (2,904,053) (6,734,351)
From net capital gains -- (2,912)
In excess of net capital gains -- (18,188)
--------------- ---------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS (2,904,053) (6,755,451)
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 359,633,001 2,639,284,234
Distributions reinvested 2,753,867 6,038,434
--------------- ---------------
362,386,868 2,645,322,668
Cost of shares redeemed (372,195,546) (2,638,992,364)
--------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS (9,808,678) 6,330,304
NET INCREASE (DECREASE) IN NET ASSETS (9,811,589) 6,346,033
NET ASSETS
Beginning of period 155,767,419 149,421,386
END OF PERIOD $ 145,955,830 $ 155,767,419
--------------- ---------------
Undistributed net investment income,
end of period $ 91,262 $ 94,173
=============== ===============
CAPITAL SHARE ACTIVITY
Shares sold 359,633,001 2,639,281,454
Shares reinvested 2,753,867 6,035,413
Shares redeemed (372,195,556) (2,638,992,374)
--------------- ---------------
NET SHARE ACTIVITY (9,808,688) 6,324,493
=============== ===============
See accompanying notes to financial statements.
90
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
U.S. GOVERNMENT SECURITIES
SAVINGS FUND NEAR-TERM TAX FREE FUND
------------------------------------ ------------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1999 JUNE 30, 1999 DECEMBER 31, 1999 JUNE 30, 1999
----------------- ------------- ----------------- -------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income $ 20,050,155 $ 38,287,207 $ 151,452 $ 297,831
Net realized gain (loss) 1,208 21,754 (40,068) 9,766
Net unrealized (depreciation) -- -- (61,500) (129,794)
------------- ------------- ----------- -----------
NET INCREASE IN NET ASSETS
FROM INVESTMENT OPERATIONS 20,051,363 38,308,961 49,884 177,803
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (20,011,790) (38,310,800) (149,456) (296,765)
From net capital gains -- -- -- --
In excess of net capital gains -- -- -- --
------------- ------------- ----------- -----------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS (20,011,790) (38,310,800) (149,456) (296,765)
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 357,544,665 819,242,776 1,020,455 1,655,595
Distributions reinvested 18,940,745 34,977,709 134,234 244,701
------------- ------------- ----------- -----------
376,485,410 854,220,485 1,154,689 1,900,296
Cost of shares redeemed (389,110,362) (825,588,463) (1,595,931) (2,431,826)
------------- ------------- ----------- -----------
NET INCREASE (DECREASE) IN
NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS (12,624,952) 28,632,022 (441,242) (531,530)
NET INCREASE (DECREASE) IN NET ASSETS (12,585,379) 28,630,183 (540,814) (650,492)
NET ASSETS
Beginning of period 790,147,761 761,517,578 7,410,967 8,061,459
END OF PERIOD $ 777,562,382 $ 790,147,761 $ 6,870,153 $ 7,410,967
Undistributed net investment income,
end of period $ 720,898 $ 682,533 $ 8,836 $ 6,840
============= ============= =========== ===========
CAPITAL SHARE ACTIVITY
Shares sold 357,544,665 819,245,215 97,845 154,848
Shares reinvested 18,940,745 34,977,710 12,882 22,872
Shares redeemed (389,110,363) (825,594,140) (152,978) (226,989)
------------- ------------- ----------- -----------
NET SHARE ACTIVITY (12,624,953) 28,628,785 (42,251) (49,269)
============= ============= =========== ===========
</TABLE>
91
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
TAX FREE FUND
----------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, JUNE 30,
1999 1999
--------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss) $ 526,461 $ 1,045,989
Net realized gain (loss) (213,321) 180,137
Net unrealized appreciation
(depreciation) (878,974) (1,008,256)
--------------- ---------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM INVESTMENT
OPERATIONS (565,834) 217,870
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (519,523) (1,043,518)
In excess of net investment income -- --
From net capital gains (64,836) (47,637)
--------------- ---------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS (584,359) (1,091,155)
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 1,792,736 12,183,581
Distributions reinvested 416,964 767,994
Paid-in capital portion of
short-term trading fee -- --
--------------- ---------------
2,209,700 12,951,575
Cost of shares redeemed (6,032,951) (9,436,152)
--------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS (3,823,251) 3,515,423
NET INCREASE (DECREASE) IN NET ASSETS (4,973,444) 2,642,138
NET ASSETS
Beginning of period 24,041,781 21,399,643
END OF PERIOD $ 19,068,337 $ 24,041,781
Undistributed net investment income,
end of period $ 13,504 $ 6,566
=============== ===============
CAPITAL SHARE ACTIVITY
Shares sold 155,568 988,731
Shares reinvested 36,053 64,403
Shares redeemed (523,355) (768,823)
--------------- ---------------
NET SHARE ACTIVITY (331,734) 284,311
=============== ===============
See accompanying notes to financial statements.
92
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
EQUITY INCOME FUND ALL AMERICAN EQUITY FUND
------------------------------- --------------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1999 1999 1999 1999
----------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss) $ (32,149) $ 119,666 $ 97,974 $ 290,242
Net realized gain (loss) 174,432 1,488,145 (153,348) 1,005,069
Net unrealized appreciation
(depreciation) 137,373 (978,966) 2,323,148 7,258,310
----------- ------------ ------------ ------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM INVESTMENT
OPERATIONS 279,656 628,845 2,267,774 8,553,621
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- (117,430) (78,901) (274,031)
In excess of net investment income -- (5,289) -- (14,031)
From net capital gains (1,302,284) (1,026,461) (793,897) (1,212,356)
----------- ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS (1,302,284) (1,149,180) (872,798) (1,500,418)
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 301,026 2,157,731 6,808,902 32,540,631
Distributions reinvested 1,251,547 1,090,457 104,027 1,391,632
Paid-in capital portion of
short-term trading fee 40 615 1,583 10,142
----------- ------------ ------------ ------------
1,552,613 3,248,803 6,914,512 33,942,405
Cost of shares redeemed (1,103,677) (3,932,219) (9,422,431) (22,464,397)
----------- ------------ ------------ ------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS 448,936 (683,416) (2,507,919) 11,478,008
NET INCREASE (DECREASE) IN NET ASSETS (573,692) (1,203,751) (1,112,943) 18,531,211
NET ASSETS
Beginning of period 9,933,070 11,136,821 53,202,185 34,670,974
END OF PERIOD $ 9,359,378 $ 9,933,070 $ 52,089,242 $ 53,202,185
----------- ------------ ------------ ------------
Undistributed net investment income,
end of period $ (37,438) $ (5,289) $ 5,042 $ (14,031)
=========== ============ ============ ============
CAPITAL SHARE ACTIVITY
Shares sold 21,591 147,478 156,054 820,839
Shares reinvested 98,961 78,865 2,444 35,559
Shares redeemed (79,320) (272,413) (215,643) (561,919)
----------- ------------ ------------ ------------
NET SHARE ACTIVITY 41,232 (46,070) (57,145) 294,479
=========== ============ ============ ============
</TABLE>
93
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
REAL ESTATE FUND
-----------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1999 JUNE 30, 1999
----------------- --------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss) $ 65,299 $ 122,234
Net realized gain (loss) (1,077,022) (600,208)
Net unrealized appreciation
(depreciation) 181,181 (528,000)
--------------- ---------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM INVESTMENT
OPERATIONS (830,542) (1,005,974)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- (111,679)
In excess of net investment income -- (15,242)
From net capital gains -- (1,474,435)
In excess of net capital gains -- (600,208)
--------------- ---------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS -- (2,201,564)
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 443,606 2,473,754
Distributions reinvested 122,969 2,019,625
Paid-in capital portion of
short-term trading fee 162 377
--------------- ---------------
566,737 4,493,756
Cost of shares redeemed (1,511,279) (5,584,443)
--------------- ---------------
NET INCREASE (DECREASE)
IN NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS (944,542) (1,090,687)
NET INCREASE (DECREASE) IN NET ASSETS (1,775,084) (4,298,225)
NET ASSETS
Beginning of period 7,070,070 11,368,295
END OF PERIOD $ 5,294,986 $ 7,070,070
Undistributed net investment income,
end of period $ 52,051 $ (13,248)
=============== ===============
CAPITAL SHARE ACTIVITY
Shares sold 51,778 237,613
Shares reinvested 13,180 218,102
Shares redeemed (179,047) (528,888)
--------------- ---------------
NET SHARE ACTIVITY (114,089) (73,173)
=============== ===============
See accompanying notes to financial statements.
94
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CHINA REGION
OPPORTUNITY FUND GLOBAL RESOURCES FUND
----------------------------- ----------------------------
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, JUNE 30, DECEMBER 31, JUNE 30,
1999 1999 1999 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss) $ (53,055) $ (189,176) $ (163,215) $ (291,122)
Net realized gain (loss) (1,557,631) (5,972,951) 188,703 (5,093,996)
Net unrealized appreciation
(depreciation) 2,553,064 12,406,604 (357,462) 4,445,370
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM INVESTMENT
OPERATIONS 942,378 6,244,477 (331,974) (939,748)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- -- -- --
In excess of net investment income -- (121,787) -- --
From net capital gains -- -- -- --
In excess of net capital gains -- -- -- (944,679)
------------ ------------ ------------ ------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS -- (121,787) -- (944,679)
------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 9,260,916 22,272,330 1,887,085 8,066,887
Distributions reinvested -- 117,943 -- 883,249
Paid-in capital portion of
short-term trading fee 126,412 138,153 1,968 12,487
------------ ------------ ------------ ------------
9,387,328 22,528,426 1,889,053 8,962,623
Cost of shares redeemed (16,380,891) (18,954,748) (3,299,796) (9,072,387)
------------ ------------ ------------ ------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM CAPITAL
SHARE TRANSACTIONS (6,993,563) 3,573,678 (1,410,743) (109,764)
NET INCREASE (DECREASE) IN NET ASSETS (6,051,185) 9,696,368 (1,742,717) (1,994,191)
NET ASSETS
Beginning of period 29,156,213 19,459,845 16,963,751 18,957,942
END OF PERIOD $ 23,105,028 $ 29,156,213 $ 15,221,034 $ 16,963,751
------------ ------------ ------------ ------------
Undistributed net investment income,
end of period $ 9,771 $ 62,826 $ (170,090) $ (6,875)
============ ============ ============ ============
CAPITAL SHARE ACTIVITY
Shares sold 1,737,435 5,390,405 479,918 2,135,644
Shares reinvested -- 30,715 -- 257,507
Shares redeemed (3,098,943) (4,950,301) (845,827) (2,406,976)
------------ ------------ ------------ ------------
NET SHARE ACTIVITY (1,361,508) 470,819 (365,909) (13,825)
============ ============ ============ ============
</TABLE>
95
<PAGE>
- --------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
WORLD GOLD FUND
-----------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1999 JUNE 30, 1999
---------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss) $ (550,228) $ 298,687
Net realized gain (loss) 4,989,838 (26,240,091)
Net unrealized appreciation 175,276 6,443,572
--------------- ---------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM INVESTMENT
OPERATIONS 4,614,886 (19,497,832)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- (130,356)
In excess of net investment income -- (8,874)
From net capital gains -- --
--------------- ---------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS -- (139,230)
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 127,910,565 1,350,820,121
Distributions reinvested -- 131,031
Paid-in capital portion of
short-term trading fee 315,588 3,235,444
--------------- ---------------
128,226,153 1,354,186,596
Cost of shares redeemed (147,829,768) (1,388,251,977)
--------------- ---------------
NET DECREASE IN NET ASSETS FROM
CAPITAL SHARE TRANSACTIONS (19,603,615) (34,065,381)
NET DECREASE IN NET ASSETS (14,988,729) (53,702,443)
NET ASSETS
Beginning of period 96,056,871 149,759,314
END OF PERIOD $ 81,068,142 $ 96,056,871
--------------- ---------------
Undistributed net investment income,
end of period $ 2,934,007 $ 3,484,235
=============== ===============
CAPITAL SHARE ACTIVITY
Shares sold 15,537,463 147,284,153
Shares reinvested -- 13,969
Shares redeemed (17,966,082) (150,152,337)
--------------- ---------------
NET SHARE ACTIVITY (2,428,619) (2,854,215)
=============== ===============
See accompanying notes to financial statements.
96
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
GOLD SHARES FUND
------------------------------------
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1999 JUNE 30, 1999
----------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income (loss) $ (725,113) $ (1,203,899)
Net realized gain (loss) 1,047,724 (10,568,253)
Net unrealized appreciation 2,062,282 10,563,743
--------------- ---------------
NET INCREASE (DECREASE) IN
NET ASSETS FROM INVESTMENT
OPERATIONS 2,384,893 (1,208,409)
DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income -- --
In excess of net investment income -- --
From net capital gains -- --
--------------- ---------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS -- --
FROM CAPITAL SHARE TRANSACTIONS:
Proceeds from shares sold 61,977,500 914,373,012
Distributions reinvested -- --
Paid-in capital portion of
short-term trading fee 148,187 2,027,603
--------------- ---------------
62,125,687 916,400,615
Cost of shares redeemed (68,574,293) (923,157,109)
--------------- ---------------
NET DECREASE IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS (6,448,606) (6,756,494)
NET DECREASE IN NET ASSETS (4,063,713) (7,964,903)
NET ASSETS
Beginning of period 38,285,646 46,250,549
END OF PERIOD $ 34,221,933 $ 38,285,646
Undistributed net investment income,
end of period $ (989,080) $ (263,967)
=============== ===============
CAPITAL SHARE ACTIVITY
Shares sold 16,858,879 241,479,468
Shares reinvested -- --
Shares redeemed (18,837,584) (242,511,961)
--------------- ---------------
NET SHARE ACTIVITY (1,978,705) (1,032,493)
=============== ===============
97
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1999
- --------------------------------------------------------------------------------
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, Equity Income, All American Equity, Real Estate, China Region
Opportunity, Global Resources, World Gold and Gold Shares. 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 may be, 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 generally considered in
determining fair value: nature and duration of any trading 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.
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
98
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1999
- --------------------------------------------------------------------------------
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 the liquid assets on their books to collateralize the obligation
until trade settlement. Such investments are accounted for in the same manner
as marketable portfolio securities.
Each fund may temporarily loan securities up to 10% of its total assets to
brokers, dealers or other financial institutions in exchange for a negotiated
lender's fee. These fees are securities lending income. The loans are
collateralized by cash, U.S. government securities, high quality money market
instruments or other securities that are maintained at all times in an amount
at least equal to the current market value of the loaned securities, plus a
margin depending on the types of securities loaned. The market value of the
loaned securities is determined at the close of business of the fund and any
additional required collateral is delivered to the fund on the next business
day. In the event of default or bankruptcy by the borrower, retention of the
collateral may be subject to legal proceedings.
The market value of securities on loan and the related collateral at December
31, 1999 was:
FUND MARKET VALUE (IN 000S) COLLATERAL (IN 000S)
------------------------ --------------------- -------------------
All American Equity Fund $ 248 $ 255
Gold Shares Fund 1,028 1,040
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 options carries the risk of a change in value of the
underlying instruments, an illiquid secondary market, or that the counterparty
may fail 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
99
<PAGE>
- --------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1999
- --------------------------------------------------------------------
the proceeds from securities sold through the exercise of the option is
adjusted by the amount of the premium.
<TABLE>
<CAPTION>
ALL AMERICAN EQUITY FUND GLOBAL RESOURCES FUND WORLD GOLD 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
June 30, 1999 (20) $ (4,940) -- $ -- 14,476 $ 6,211,104
Options written -- -- -- -- -- --
Options purchased 410 508,730 85 100,355 -- --
Options terminated in
closing purchase
transactions -- -- -- -- -- --
Options sold (30) (57,045) -- -- (3,600) (1,384,463)
Close of written
options 20 4,940 -- -- -- --
Options expired -- -- -- -- -- --
------ ---------- -- -------- ------ -----------
Options outstanding at
December 31, 1999 380 $ 451,685 85 $100,355 10,876 $ 4,826,641
====== ========== == ======== ====== ===========
GOLD SHARES FUND
---------------------------
NUMBER OF PREMIUMS
CONTRACTS PAID/(RECEIVED)
--------- --------------
<S> <C> <C>
Options outstanding at
June 30, 1999 6,670 $2,851,485
Options written -- --
Options purchased -- --
Options terminated in
closing purchase
transactions -- --
Options sold (1,600) (604,587)
Close of written
options -- --
Options expired -- --
------ ----------
Options outstanding at
December 31, 1999 5,070 $2,246,898
====== ==========
</TABLE>
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 unrealized
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.
100
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1999
- --------------------------------------------------------------------------------
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 Equity Income
pay quarterly dividends. Real Estate pays semi-annual 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 treated as paid-in capital. Expense
offset arrangements have been made with the funds' custodian so the custodian
fees may be 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
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. (Adviser), under an investment advisory agreement
with the Trust in effect through February 28, 2001, 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 Adviser 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 Adviser.
101
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1999
- --------------------------------------------------------------------------------
For the services of the Adviser, 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:
ANNUAL PERCENTAGE OF
FUND AVERAGE DAILY NET ASSETS
--------------------------------- ------------------------------
Gold Shares, All American Equity, .75% of the first $250,000,000
Equity Income, Tax Free and Real and .50% of the excess
Estate
U.S. Treasury Securities Cash and .50% of the first $250,000,000
U.S. Government Securities and .375% of the excess
Savings
World Gold and Global Resources 1.00% of the first $250,000,000
and .50% of the excess
Near-Term Tax Free .50%
China Region Opportunity 1.25%
The Adviser 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, 1999, 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
Adviser, is the transfer agent for the funds. Each fund pays an annual fee
based on its 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 engaged Brown Brothers Harriman & Co. as the custodian, fund
accounting and administration service agent with a fee structure based on
average net assets of the funds. Additionally, the Adviser was reimbursed at
cost for in-house legal and internal administration services pertaining to each
fund during the six months ended December 31, 1999, in the amounts of $116,483
and $18,360, respectively.
During the six months ended December 31, 1999, A & B Mailers, Inc., a
wholly-owned subsidiary of the Adviser, was paid $209,607 for mailing services
provided to the funds.
The five independent Trustees receive compensation for serving on the Board.
The Chairman and members of special committees receive additional compensation.
Trustees are also reimbursed for out-of-pocket expenses incurred while
attending meetings. Please refer to the Statement of Operations for Trustees'
fees and expenses. Frank E. Holmes receives no compensation from the funds for
serving on the Board.
102
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1999
- --------------------------------------------------------------------------------
NOTE 3: INVESTMENT ACTIVITY
Purchases and sales of long-term securities for the six months ended December
31, 1999, are summarized as follows:
FUND PURCHASES SALES
------------------------------------------------------------------------------
U.S. Treasury Securities Cash $ 104,357,125 $ 105,000,000
U.S. Government Securities 3,358,718,113 3,275,576,034
Near-Term Tax Free 842,384 1,321,579
Tax Free 1,434,089 5,331,300
Equity Income 699,235 1,784,162
All American Equity 5,912,548 6,950,242
Real Estate 2,477,100 3,469,980
China Region Opportunity 4,786,244 6,264,958
Global Resources 5,247,182 6,902,555
World Gold 40,527,964 46,525,180
Gold Shares 14,703,747 14,259,193
Investments in foreign issuers as a percent of total investments at December
31, 1999 were: 23.12% of Real Estate, 93.19% of China Region Opportunity,
21.66% of Global Resources, 73.79% of World Gold and 75.48% of Gold Shares.
The following table presents the income tax basis of the securities owned at
December 31, 1999, 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 $146,199,592 $ -- $ -- $ --
U.S. Government Securities
Savings 783,027,714 -- -- --
Near-Term Tax Free 6,840,203 14,679 (75,364) (60,685)
Tax Free 20,080,444 140,078 (1,272,571) (1,132,493)
Equity Income 7,703,749 2,035,175 (492,220) 1,542,955
All American Equity 28,422,988 25,174,470 (1,096,314) 24,078,156
Real Estate 5,895,439 74,716 (621,599) (546,883)
China Region Opportunity 22,234,069 6,200,132 (5,186,324) 1,013,808
Global Resources 14,979,020 1,277,016 (954,716) 322,300
World Gold 94,406,162 9,844,021 (26,590,746) (16,746,725)
Gold Shares 35,690,022 3,028,428 (5,267,443) (2,239,015)
</TABLE>
103
<PAGE>
- --------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1999
- --------------------------------------------------------------------
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 December 31,
1999, are as follows:
LOSS EXPIRATION
FUND CARRYFORWARDS DATE
---------------------------------- ------------ -----------
U.S. Treasury Securities Cash $ 7,531 2007
U.S. Government Securities Savings 1,629,392 2003 - 2005
Near-Term Tax Free 200,511 2002 - 2003
Real Estate 360,575 2007
China Region Opportunity 6,602,805 2004 - 2007
Global Resources 6,668,259 2007
World Gold 42,669,885 2000 - 2007
Gold Shares 193,554,980 2000 - 2007
POST OCTOBER 31, 1998 POST OCTOBER 31, 1998
FUND CAPITAL LOSSES CURRENCY LOSS DEFERRAL
------------------------ --------------------- ----------------------
U.S. Treasury Securities
Cash $ 10,657 $ --
Real Estate 241,627 --
China Region Opportunity 4,144,732 233
Global Resources 2,907,762 6,875
World Gold 12,564,904 122,651
Gold Shares 2,787,360 185,685
The amounts above, in accordance with tax rules, are deemed to have occurred
on July 1, 1999.
NOTE 4: RISKS OF CONCENTRATIONS
China Region Opportunity may be exposed to risks not typically associated with
investments in the United States, due to concentration of 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.
104
<PAGE>
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS December 31, 1999
- --------------------------------------------------------------------------------
NOTE 5: REVOLVING CREDIT FACILITY
U.S. Global Investors Funds, along with other funds under common management,
currently participate in an $85 million revolving credit facility (Facility)
dated March 1, 1999. The Facility is intended to provide short-term financing,
if necessary, subject to certain restrictions in connection with abnormal
redemption activity. Commitment fees related to the Facility are paid by the
participating funds. An annual fee of $75,000, and quarterly commitment fees
totaling $127,000, are paid within each annual period. Borrowings under these
notes will be charged interest at the current overnight Federal Funds Rate plus
2.00%. There were no borrowings under the outstanding Facility as of December
31, 1999.
NOTE 6: SHARES OF BENEFICIAL INTEREST
At December 31, 1999, individual shareholders holding more than 5% of
outstanding shares comprised 15.55% of the Near-Term Tax Free Fund.
105
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
U.S. TREASURY SECURITIES CASH FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<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 .04
Net realized and unrealized gain -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from investment activities .02 .04 .04 .04 .04 .04
-------- -------- -------- -------- -------- --------
Distributions
From net investment income (.02) (.04) (.04) (.04) (.04) (.04)
From net realized gains -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions (.02) (.04) (.04) (.04) (.04) (.04)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
-------- -------- -------- -------- -------- --------
TOTAL RETURN
(excluding account fees) (a) 2.03% 3.92% 4.55% 4.35% 4.54% 4.43%
Ratios to Average Net Assets (b):
Net investment income 3.93% 3.87% 4.37% 4.22% 4.42% 4.32%
Total expenses 1.07% 1.01% .96% 1.04% 1.03% .97%
Expenses reimbursed or offset (.01)% -- -- -- -- --
Net expenses 1.06% 1.01% .96% 1.04% 1.03% .97%
Net assets, end of period (in
thousands) $145,956 $155,767 $149,421 $231,882 $188,844 $190,373
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
</TABLE>
See accompanying notes to financial statements.
106
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
U.S. GOVERNMENT SECURITIES SAVINGS FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<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 .05
Net realized and unrealized gain
(loss) -- -- -- -- -- (.01)
-------- -------- -------- -------- -------- --------
Total from investment activities .03 .05 .05 .05 .05 .04
-------- -------- -------- -------- -------- --------
Distributions
From net investment income (.03) (.05) (.05) (.05) (.05) (.05)
From net realized gains -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions (.03) (.05) (.05) (.05) (.05) (.05)
Capital contribution by manager -- -- -- -- -- .01
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 2.53% 4.90% 5.38% 5.27% 5.34% 5.09%(c)
Ratios to Average Net Assets (b):
Net investment income 4.93% 4.78% 5.25% 5.13% 5.28% 5.03%
Total expenses .59% .61% .67% .70% .71% .68%
Expenses reimbursed or offset (.20)% (.30)% (.36)% (.41)% (.45)% (.45)%
Net expenses .39% .31% .31% .29% .26% .23%
Net assets, end of period (in
thousands) $777,562 $790,148 $761,518 $691,769 $588,409 $529,372
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
(c) Total return includes the effect of a voluntary capital contribution by the
Adviser; otherwise the return would have been 4.19%.
</TABLE>
See accompanying notes to financial statements.
107
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
NEAR-TERM TAX FREE FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $10.47 $10.64 $10.49 $10.38 $10.47 $10.39
Investment Activities
Net investment income 0.22 .42 .43 .48 .47 .45
Net realized and unrealized gain
(loss) (.15) (.17) .19 .12 (.09) .06
------ ------ ------ ------ ------ ------
Total from investment activities .07 .25 .62 .60 .38 .51
------ ------ ------ ------ ------ ------
Distributions
From net investment income (.22) (.42) (.47) (.49) (.47) (.43)
From net realized gains -- -- -- -- -- --
------ ------ ------ ------ ------ ------
Total distributions (.22) (.42) (.47) (.49) (.47) (.43)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $10.32 $10.47 $10.64 $10.49 $10.38 $10.47
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 0.62% 2.35% 6.02% 5.85% 3.68% 5.02%
Ratios to Average Net Assets (b):
Net investment income 4.09% 3.93% 4.12% 4.67% 4.41% 4.25%
Total expenses 2.16% 2.25% 1.83% 1.92% 1.75% 1.62%
Expenses reimbursed or offset (1.46)% (1.55)% (1.13)% (1.52)% (1.23)% (1.42)%
Net expenses .70% .70% .70% .40% .52% .20%
Portfolio turnover rate 12% 38% 39% 103% 83% 53%
Net assets, end of period (in
thousands) $6,870 $7,411 $8,061 $7,360 $6,545 $7,128
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
</TABLE>
See accompanying notes to financial statements.
108
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
TAX FREE FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $11.80 $12.20 $11.89 $11.58 $11.55 $11.40
- --------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .29 .55 .57 .59 .59 .64
Net realized and unrealized gain
(loss) (.59) (.37) .33 .31 .01 .18
------- ------- ------- ------- ------- -------
Total from investment activities (.30) .18 .90 .90 .60 .82
------- ------- ------- ------- ------- -------
Distributions
From net investment income (.28) (.55) (.59) (.59) (.57) (.64)
In excess of net investment income -- -- -- -- -- (.03)
From net realized gains (.04) (.03) -- -- -- --
------- ------- ------- ------- ------- -------
Total distributions (.32) (.58) (.59) (.59) (.57) (.67)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $11.18 $11.80 $12.20 $11.89 $11.58 $11.55
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) (2.59)% 1.39% 7.71% 7.93% 5.25% 7.51%
Ratios to Average Net Assets (b):
Net investment income 4.74% 4.54% 4.77% 5.00% 5.06% 5.62%
Total expenses 1.44% 1.45% 1.45% 1.46% 1.44% 1.49%
Expenses reimbursed or offset (.74)% (.75)% (.75)% (1.06)% (1.08)% (1.27)%
Net expenses .70% .70% .70% .40% .36% .22%
Portfolio turnover rate 7% 42% 49% 87% 69% 22%
Net assets, end of period (in
thousands) $19,068 $24,042 $21,400 $18,327 $19,949 $18,613
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
</TABLE>
See accompanying notes to financial statements.
109
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
EQUITY INCOME FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $14.59 $15.32 $14.49 $14.94 $13.35 $12.57
- --------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (.04) .17 .23 .31 .35 .35
Net realized and unrealized gain .47 .72 2.84 1.77 1.84 .79
------ ------ ------- ------ ------ -------
Total from investment activities .43 .89 3.07 2.08 2.19 1.14
------ ------ ------- ------ ------ -------
Distributions
From net investment income -- (.17) (.28) (.27) (.35) (.34)
From net realized gains (2.06) (1.45) (1.96) (2.26) (.25) (.02)
------ ------ ------- ------ ------ -------
Total distributions (2.06) (1.62) (2.24) (2.53) (.60) (.36)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $12.96 $14.59 $15.32 $14.49 $14.94 $13.35
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 3.30% 6.50% 23.92% 15.58% 16.60% 9.31%
Ratios to Average Net Assets (b):
Net investment income (.69)% 1.15% 1.54% 2.18% 2.45% 2.59%
Total expenses 2.64% 2.56% 2.14% 2.20% 2.10% 2.01%
Expenses reimbursed or offset -- -- -- (.01)% (.02)% (.03)%
Net expenses 2.64% 2.56% 2.14% 2.19% 2.08% 1.98%
Portfolio turnover rate 8% 101% 29% 88% 51% 7%
Net assets, end of period (in
thousands) $9,359 $9,933 $11,137 $9,615 $9,698 $10,230
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
</TABLE>
See accompanying notes to financial statements.
110
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
ALL AMERICAN EQUITY FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $44.78 $38.80 $31.34 $24.55 $20.08 $19.52
- --------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .08 .26 .38 .38 .41 .44
Net realized and unrealized gain 1.97 7.10 8.06 7.64 4.44 2.68
------- ------- ------- ------- ------- -------
Total from investment activities 2.05 7.36 8.44 8.02 4.85 3.12
------- ------- ------- ------- ------- -------
Distributions
From net investment income (.07) (.25) (.37) (.43) (.38) (.39)
In excess of net investment income -- (.01) (.03) -- -- --
From net realized gains (.70) (1.12) (.58) (.80) -- --
In excess of net realized gains -- -- -- -- -- (2.17)
------- ------- ------- ------- ------- -------
Total distributions (.77) (1.38) (.98) (1.23) (.38) (2.56)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $46.06 $44.78 $38.80 $31.34 $24.55 $20.08
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 4.59% 19.49% 27.31% 33.68% 24.31% 17.98%
Ratios to Average Net Assets (b):
Net investment income .37% .66% 1.03% 1.51% 1.84% 2.33%
Total expenses 1.42% 1.56% 1.61% 1.81% 1.90% 2.17%
Expenses reimbursed or offset (.42)% (.56)% (.64)% (1.14)% (1.22)% (1.47)%
Net expenses 1.00% 1.00% .97% .67% .68% .70%
Portfolio turnover rate 12% 25% 24% 7% 16% 97%
Net assets, end of period (in
thousands) $52,089 $53,202 $34,671 $25,478 $15,220 $11,931
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
</TABLE>
See accompanying notes to financial statements.
111
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
REAL ESTATE FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $9.33 $13.68 $14.22 $10.97 $9.80 $9.86
- ---------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income .10 .16 .27 .40 .42 .23
Net realized and unrealized gain
(loss) (1.20) (1.39) .03 3.15 1.27 (.13)
------ ------ ------- ------- ------ ------
Total from investment activities (1.10) (1.23) .30 3.55 1.69 .10
------ ------ ------- ------- ------ ------
Distributions
From net investment income -- (.15) (.39) (.30) (.39) (.16)
In excess of net investment income -- (.02) -- -- -- --
From net realized gains -- (2.10) (.45) -- -- --
In excess of net realized gains -- (.85) -- -- -- --
Tax return of capital -- -- -- -- (.13) --
------ ------ ------- ------- ------ ------
Total distributions -- (3.12) (.84) (.30) (.52) (.16)
- ---------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $8.23 $9.33 $13.68 $14.22 $10.97 $9.80
- ---------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) (11.79)% (8.44)% 1.39% 32.44% 17.34% 1.09%
Ratios to Average Net Assets (b):
Net investment income 2.17% 1.40% 2.05% 3.19% 3.63% 2.22%
Total expenses 3.95% 3.21% 2.01% 1.82% 2.27% 1.95%
Expenses reimbursed or offset -- (.01)% (.04)% (.02)% (.01)% (.03)%
Net expenses 3.95% 3.20% 1.97% 1.80% 2.26% 1.92%
Portfolio turnover rate 46% 54% 95% 118% 108% 48%
Net assets, end of period (in
thousands) $5,295 $7,070 $11,368 $13,897 $8,220 $9,169
(*) Effective May 1, 1998, the fund changed to a new sub-adviser, Goodman & Co.
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
</TABLE>
See accompanying notes to financial statements.
112
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
CHINA REGION OPPORTUNITY FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $5.58 $4.09 $8.60 $6.43 $6.67 $7.75
- --------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (.01) (.03) .03 .05 .08 .10
Net realized and unrealized gain
(loss) .41 1.55 (4.49) 2.15 (.22) (1.09)
------- ------- ------- ------- ------- -------
Total from investment activities .40 1.52 (4.46) 2.20 (.14) (.99)
------- ------- ------- ------- ------- -------
Distributions
From net investment income -- -- (.05) (.03) (.08) (.09)
In excess of net investment income -- (.03) -- -- (.02) --
From net realized gains -- -- -- -- -- --
------- ------- ------- ------- ------- -------
Total distributions -- (.03) (.05) (.03) (.10) (.09)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $5.98 $5.58 $4.09 $8.60 $6.43 $6.67
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 7.17% 37.50% (52.06)% 34.38% (2.07)% (12.79)%
Ratios to Average Net Assets (b):
Net investment income (loss) (.46)% (1.18)% .39% .87% 1.24% 1.53%
Total expenses 3.18% 4.41% 2.60% 2.54% 2.60% 2.51%
Expenses reimbursed or offset -- -- -- (.32)% (.45)% (.56)%
Net expenses 3.18% 4.41% 2.60% 2.22% 2.15% 1.95%
Portfolio turnover rate 23% 13% 17% 24% 37% 54%
Net assets, end of period (in
thousands) $23,105 $29,156 $19,460 $42,099 $20,967 $19,022
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
</TABLE>
See accompanying notes to financial statements.
113
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
GLOBAL RESOURCES FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $4.01 $4.47 $7.33 $6.98 $5.76 $5.74
- --------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (.04) (.07) (.01) (.05) (.01) (.03)
Net realized and unrealized gain
(loss) (.03) (.15) (1.95) 1.34 1.31 .36
------- ------- ------- ------- ------- -------
Total from investment activities (.07) (.22) (1.96) 1.29 1.30 .33
------- ------- ------- ------- ------- -------
Distributions
From net investment income -- -- -- (.04) -- --
In excess of net investment income -- -- -- -- (.01) --
From net realized gains -- -- (.04) (.90) (.07) --
In excess of net realized gains -- (.24) (.86) -- -- (.31)
------- ------- ------- ------- ------- -------
Total distributions -- (.24) (.90) (.94) (.08) (.31)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $3.94 $4.01 $4.47 $7.33 $6.98 $5.76
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) (1.75)% (4.12)% (29.79)% 18.96% 22.80% 5.94%
Ratios to Average Net Assets (b):
Net investment income (loss) (2.01)% (1.83)% (1.51)% (.76)% (.13)% (.60)%
Total expenses 3.97% 4.34% 2.42% 2.34% 2.58% 2.51%
Expenses reimbursed or offset (.01)% -- (.04)% (.04)% (.01)% (.02)%
Net expenses 3.96% 4.34% 2.38% 2.30% 2.57% 2.49%
Portfolio turnover rate 34% 153% 192% 52% 117% 50%
Net assets, end of period (in
thousands) $15,221 $16,964 $18,958 $29,983 $24,534 $21,452
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
</TABLE>
See accompanying notes to financial statements.
114
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
WORLD GOLD FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $7.79 $9.86 $15.95 $21.12 $15.81 $15.63
- --------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) .01 .02 (.05) (.12) (.08) (.12)
Net realized and unrealized gain
(loss) .39 (2.08) (5.90) (3.94) 5.39 .33
------- ------- -------- -------- -------- --------
Total from investment activities .40 (2.06) (5.95) (4.06) 5.31 .21
------- ------- -------- -------- -------- --------
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 $8.19 $7.79 $9.86 $15.95 $21.12 $15.81
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 5.13% (20.89)% (37.41)% (20.10)% 33.59% 1.36%
Ratios to Average Net Assets (b):
Net investment income (loss) (1.27)% .27% (.72)% (.60)% (.40)% (.66)%
Total expenses 2.47% 2.18% 1.74% 1.54% 1.53% 1.58%
Expenses reimbursed or offset -- (.06)% -- (.02)% (.02)% (.03)%
Net expenses 2.47% 2.12% 1.74% 1.52% 1.51% 1.55%
Portfolio turnover rate 52% 252% 43% 40% 26% 28%
Net assets, end of period (in
thousands) $81,068 $96,057 $149,759 $187,466 $248,781 $181,473
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
</TABLE>
See accompanying notes to financial statements.
115
<PAGE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
GOLD SHARES FUND
<TABLE>
<CAPTION>
FOR A CAPITAL SHARE OUTSTANDING DURING THE SIX MONTHS ENDED DECEMBER
31, 1999 (UNAUDITED) AND EACH YEAR ENDED JUNE 30,
12/99 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE, BEGINNING OF PERIOD $3.42 $3.79 $9.40 $18.40 $21.40 $24.80
- --------------------------------------------------------------------------------------------------------
Investment Activities
Net investment income (loss) (.08) (.11) .01 .40 .50 .60
Net realized and unrealized gain
(loss) .38 (.26) (5.50) (8.90) (3.00) (3.30)
------- ------- ------- ------- -------- --------
Total from investment activities .30 (.37) (5.49) (8.50) (2.50) (2.70)
------- ------- ------- ------- -------- --------
Distributions
From net investment income -- -- (.11) (.50) (.50) (.60)
In excess of net investment income -- -- (.01) -- -- (.10)
From net realized gains -- -- -- -- -- --
------- ------- ------- ------- -------- --------
Total distributions -- -- (.12) (.50) (.50) (.70)
- --------------------------------------------------------------------------------------------------------
NET ASSET VALUE, END OF PERIOD $3.72 $3.42 $3.79 $9.40 $18.40 $21.40
- --------------------------------------------------------------------------------------------------------
TOTAL RETURN
(excluding account fees) (a) 8.77% (9.76)% (58.83)% (46.49)% (11.73)% (11.21)%
Ratios to Average Net Assets (b):
Net investment income (loss) (4.22)% (2.88)% .53% 2.68% 1.81% 2.47%
Total expenses 5.82% 5.59% 2.67% 1.84% 1.58% 1.47%
Expenses reimbursed or offset -- (.35)% (.20)% (.04)% (.04)% (.05)%
Net expenses 5.82% 5.24% 2.47% 1.80% 1.54% 1.42%
Portfolio turnover rate 47% 388% 220% 44% 24% 33%
Net assets, end of period (in
thousands) $34,222 $38,286 $46,251 $79,598 $153,839 $211,171
The values shown above for the prior periods have been adjusted to reflect
the 1-for-10 reverse stock split, which was effective on July 1, 1998.
(a) Total returns for periods less than one year are not annualized.
(b) Ratios are annualized for periods 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.
</TABLE>
See accompanying notes to financial statements.
116
<PAGE>
- --------------------------------------------------------------------------------
NOTICE OF CHANGE IN INDEPENDENT ACCOUNTANTS
- ------------------------0-------------------------------------------------------
On July 1, 1999, PricewaterhouseCoopers LLP (PwC) informed the Chairman of the
Audit Committee and management of U.S. Global Investors Funds that they
declined to stand for reappointment, upon the completion of the audit of the
June 30, 1999 financial statements of the funds. Based on the recommendation of
the Audit Committee of U.S. Global Investors Funds, the board of trustees voted
to appoint Arthur Andersen LLP as the funds' independent accountants for the
fiscal year ended June 30, 2000. During the two most recent fiscal years ended
June 30, 1999 and June 30, 1998, PwC's audit reports contained no adverse
opinion or disclaimer of opinion; nor were its reports qualified or modified as
to uncertainty, audit scope, or accounting principle. Further, in connection
with its audits for the two most recent fiscal years ended June 30, 1999 and
June 30, 1998 and through August 23, 1999, there were no disagreements between
the funds and PwC on any matter of accounting principles or practices,
financial statement disclosure or auditing scope or procedure, which if not
resolved to the satisfaction of PwC would have caused it to make reference to
the disagreements in its report on the financial statements for such years.
117
<PAGE>
- --------------------------------------------------------------------------------
NOTES
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<SERIES>
<NUMBER> 1
<NAME> GOLD SHARES FUND
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> DEC-31-1999
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 35690022
<INVESTMENTS-AT-VALUE> 33451007
<RECEIVABLES> 2219422
<ASSETS-OTHER> 72624
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 35743053
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 1521120
<TOTAL-LIABILITIES> 1521120
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 233407437
<SHARES-COMMON-STOCK> 9205195
<SHARES-COMMON-PRIOR> 11183900
<ACCUMULATED-NII-CURRENT> (989080)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (195961114)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (2235310)
<NET-ASSETS> 34221933
<DIVIDEND-INCOME> 245470
<INTEREST-INCOME> 28942
<OTHER-INCOME> 78
<EXPENSES-NET> 999603
<NET-INVESTMENT-INCOME> (725113)
<REALIZED-GAINS-CURRENT> 1047724
<APPREC-INCREASE-CURRENT> 2062282
<NET-CHANGE-FROM-OPS> 2384893
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 16858879
<NUMBER-OF-SHARES-REDEEMED> (18837584)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (4063713)
<ACCUMULATED-NII-PRIOR> (263967)
<ACCUMULATED-GAINS-PRIOR> (197008838)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 129004
<INTEREST-EXPENSE> 266
<GROSS-EXPENSE> 999869
<AVERAGE-NET-ASSETS> 33792870
<PER-SHARE-NAV-BEGIN> 3.42
<PER-SHARE-NII> (.08)
<PER-SHARE-GAIN-APPREC> .38
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.72
<EXPENSE-RATIO> 5.82
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<CIK> 0000101507
<NAME> U.S. GLOBAL INVESTORS FUNDS
<SERIES>
<NAME> ALL AMERICAN EQUITY FUND
<NUMBER> 2
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> DEC-31-1999
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 28422988
<INVESTMENTS-AT-VALUE> 52501144
<RECEIVABLES> 1506504
<ASSETS-OTHER> 2909
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 54010557
<PAYABLE-FOR-SECURITIES> 1007650
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 913665
<TOTAL-LIABILITIES> 1921315
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 28370350
<SHARES-COMMON-STOCK> 1130907
<SHARES-COMMON-PRIOR> 1188052
<ACCUMULATED-NII-CURRENT> 5042
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (364306)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 24078156
<NET-ASSETS> 52089242
<DIVIDEND-INCOME> 271113
<INTEREST-INCOME> 85025
<OTHER-INCOME> 210
<EXPENSES-NET> 258374
<NET-INVESTMENT-INCOME> 97974
<REALIZED-GAINS-CURRENT> (153348)
<APPREC-INCREASE-CURRENT> 2323148
<NET-CHANGE-FROM-OPS> 2267774
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (78901)
<DISTRIBUTIONS-OF-GAINS> (793897)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 156054
<NUMBER-OF-SHARES-REDEEMED> (215643)
<SHARES-REINVESTED> 2444
<NET-CHANGE-IN-ASSETS> (1112943)
<ACCUMULATED-NII-PRIOR> (14031)
<ACCUMULATED-GAINS-PRIOR> 582939
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 196813
<INTEREST-EXPENSE> 7
<GROSS-EXPENSE> 368117
<AVERAGE-NET-ASSETS> 51564204
<PER-SHARE-NAV-BEGIN> 44.78
<PER-SHARE-NII> .08
<PER-SHARE-GAIN-APPREC> 1.97
<PER-SHARE-DIVIDEND> (0.07)
<PER-SHARE-DISTRIBUTIONS> (.70)
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 46.06
<EXPENSE-RATIO> 1.00
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<CIK> 0000101507
<NAME> U.S. GLOBAL INVESTORS FUNDS
<SERIES>
<NUMBER> 3
<NAME> GLOBAL RESOURCES FUND
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> DEC-31-1999
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 14979020
<INVESTMENTS-AT-VALUE> 15301320
<RECEIVABLES> 134127
<ASSETS-OTHER> 4431
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 15439878
<PAYABLE-FOR-SECURITIES> 107069
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 111775
<TOTAL-LIABILITIES> 218844
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 24556900
<SHARES-COMMON-STOCK> 3861397
<SHARES-COMMON-PRIOR> 4227306
<ACCUMULATED-NII-CURRENT> (170090)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (9488080)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 322304
<NET-ASSETS> 15221034
<DIVIDEND-INCOME> 151186
<INTEREST-INCOME> 8057
<OTHER-INCOME> 28
<EXPENSES-NET> 322486
<NET-INVESTMENT-INCOME> (163215)
<REALIZED-GAINS-CURRENT> 188703
<APPREC-INCREASE-CURRENT> (357462)
<NET-CHANGE-FROM-OPS> (331974)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 479918
<NUMBER-OF-SHARES-REDEEMED> (845827)
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (1742717)
<ACCUMULATED-NII-PRIOR> (6875)
<ACCUMULATED-GAINS-PRIOR> (9676783)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 81410
<INTEREST-EXPENSE> 4
<GROSS-EXPENSE> 323037
<AVERAGE-NET-ASSETS> 16009459
<PER-SHARE-NAV-BEGIN> 4.01
<PER-SHARE-NII> (.04)
<PER-SHARE-GAIN-APPREC> (.03)
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 3.94
<EXPENSE-RATIO> 3.96
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<CIK> 0000101507
<NAME> U.S. GLOBAL INVESTORS FUNDS
<SERIES>
<NUMBER> 5
<NAME> U.S. TREASURY SECURITIES CASH FUND
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> DEC-31-1999
<EXCHANGE-RATE> 1
<INVESTMENTS-AT-COST> 146199592
<INVESTMENTS-AT-VALUE> 146199592
<RECEIVABLES> 47776710
<ASSETS-OTHER> 235171
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 194211473
<PAYABLE-FOR-SECURITIES> 46251606
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2004037
<TOTAL-LIABILITIES> 48255643
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 145882756
<SHARES-COMMON-STOCK> 145932385
<SHARES-COMMON-PRIOR> 155741073
<ACCUMULATED-NII-CURRENT> 91262
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (18188)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 145955830
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 3236715
<OTHER-INCOME> 448921
<EXPENSES-NET> 784494
<NET-INVESTMENT-INCOME> 2901142
<REALIZED-GAINS-CURRENT> 0
<APPREC-INCREASE-CURRENT> 0
<NET-CHANGE-FROM-OPS> 2901142
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (2904053)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 359633001
<NUMBER-OF-SHARES-REDEEMED> ((372195556)
<SHARES-REINVESTED> 2753867
<NET-CHANGE-IN-ASSETS> (9811589)
<ACCUMULATED-NII-PRIOR> 94173
<ACCUMULATED-GAINS-PRIOR> (18188)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 369178
<INTEREST-EXPENSE> 1519
<GROSS-EXPENSE> 788244
<AVERAGE-NET-ASSETS> 145176386
<PER-SHARE-NAV-BEGIN> 1.00
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> (.02)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 1.00
<EXPENSE-RATIO> 1.06
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<CIK> 0000101507
<NAME> U.S. GLOBAL INVESTORS FUNDS
<SERIES>
<NUMBER> 6
<NAME> EQUITY INCOME FUND
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 6-MOS
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<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<CIK> 0000101507
<NAME> U.S. GLOBAL INVESTORS FUNDS
<SERIES>
<NUMBER> 7
<NAME> TAX FREE FUND
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<S> <C>
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<CIK> 0000101507
<NAME> U.S. GLOBAL INVESTORS FUNDS
<SERIES>
<NUMBER> 9
<NAME> WORLD GOLD FUND
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<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUN-30-2000
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</TABLE>
<TABLE> <S> <C>
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<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<CIK> 0000101507
<NAME> U.S. GLOBAL INVESTORS FUNDS
<SERIES>
<NUMBER> 10
<NAME> U.S. GOVERNMENT SECURITIES SAVINGS FUND
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<CIK> 0000101507
<NAME> U.S. GLOBAL INVESTORS FUNDS
<SERIES>
<NUMBER> 11
<NAME> REAL ESTATE FUND
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<S> <C>
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<CIK> 0000101507
<NAME> U.S. GLOBAL INVESTORS FUNDS
<SERIES>
<NUMBER> 12
<NAME> NEAR-TERM TAX FREE FUND
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<LEGEND>
This Financial Data Schedule contains summary financial information extracted
from the semi-annual report for the period ended December 31, 1999, filed on
Form N-SAR and is qualified in its entirety by refernce to such report.
</LEGEND>
<CIK> 0000101507
<NAME> U.S. GLOBAL INVESTORS FUNDS
<SERIES>
<NUMBER> 16
<NAME> CHINA REGION OPPORTUNITY FUND
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</TABLE>
