ICON FUNDS
ANNUAL REPORT
Measuring Up
1999
<PAGE>
ICON FUNDS
Management Discussion and Analysis
Domestic Funds 6
Management Discussion and Analysis
Short-Term Fixed Income Fund 39
Management Discussion and Analysis
International Funds 41
Financial Statements 56
Financial Highlights 72
Notes to Financial Statements 81
Serving as Advisor for the ICON Funds is Meridian Investment Management
Corporation, referenced in this report as the "Advisor."
1
<PAGE>
MEASURING UP
- ------------
Dear ICON Funds Shareholders and Advisors:
It isn't the speed of receiving data that determines performance.
It isn't the quantity of data generated that defines opportunity.
In the world of investments, fast information without discipline is useless,
perhaps even harmful.
We have entered a time when investment information flows 24 hours a day. Between
mainstream media, the Internet and various statistical services, investors and
managers are being bombarded with facts and figures delivered faster and faster.
Much of this information is meaningless, but when presented in an impressive
format, it begs to be used. Trading and turnover have increased; investors have
turned into speculators. False confidence is becoming an added risk in an
environment that has never been risk-free. Case in point: Many investors
listened to the negative outlook in the fall of 1998 and bailed out of the
market at the bottom. They completely missed the impressive rally that followed.
Others unsuccessfully tried to trade sectors weekly or monthly during the rally.
They found themselves chasing "last month's winner." Still others sacrificed
sensible diversification in their do-it-yourself individual stock purchases.
They found the ultimate cost to be high.
I open my letter to you with those insights and examples for two reasons. First,
it concerns me that investors are being pulled away from their long-term
financial goals. Second, it reinforces the value that the ICON FUNDS offer their
shareholders.
If you have our 1998 report in your files, you might want to pull it out now.
You'll see we made some bold statements last fall regarding market shifts,
leadership changes and their anticipated impact on various sectors. I'm pleased
to say, we believe we were right on target.
Here's how we measured up:
Unlike the typical mutual fund report, we told you it was a great buying
opportunity, despite the extreme negative news and overall jitters among
investors. In fact, within days of the absolute bottom, we declared it to be
(quoting from last year's report) "one of the best buying windows in recent
history. This is based on valuation estimates for 1,700 U.S. stocks." So, at a
time when most investors were fleeing the market, we hope our letter helped
maintain or even increase your equity exposure for participation in the
subsequent rally. Our job in managing the ICON Funds at the time was to minimize
cash levels and secure industries that we expected to be leaders. We are pleased
with the way we handled a situation many analysts labeled a "crisis."
As outstanding as that call was, however, it was really quite simple. Our
valuation methodology determined stocks to be on sale relative to fair value. We
had the confidence to convey it to you because the ability to recognize major
turning points and new bull markets is a primary strength of our system.
2
<PAGE>
Our discipline was simply doing its job.
Over the last year, industry and sector leadership has experienced monthly
surges and reversals that have distracted investors from the long-term theme. We
have seen investors try to "time" short-term changes unsuccessfully. They may
have been acting on prompt, accurate information, but it lacked predictive
content. Inside ICON, we stick to a discipline of buying industries that have
leadership characteristics and holding them for long periods. Our sell
discipline appears fairly sluggish to observers new to our system, but it works:
it keeps turnover low and keeps us focused on the long term. While the ease of
trading stocks has increased and related costs have decreased, one thing has
remained constant... that factor known as "human nature." Investors tend to
chase the herd, buy at peaks, and sell at bottoms over the decades. Newly
available information and technology does not change that.
More cases in point: America Online was enticing at $167 per share in April,
1999 but it dropped to $83 over the next several months. The herd loved
Amazon.com at $105, just before it dropped to $40 last summer, 1999. Schwab,
another very good company, must have looked extremely appealing to investors at
$75 per share in April, 1999 before recently dropping to $35 in September, 1999.
To summarize, during 1999 we have seen investors fall victim to decades-old
patterns and also abandon some ground rules of diversification. Holding too few
securities - or excessively over-weighting a few - compounds and exaggerates
problems from the natural tendency go with the herd. In the ICON Funds, we buy
industries with stocks that are under-priced relative to fair value. That tends
to make us aggressive when stocks are cheap and cautious when stocks are
expensive. We buy a few stocks in each industry to diversify and reduce the risk
of individual stock ownership. It is a sensible approach to sector investing and
one worthy of an investor's long-term retirement money. For it is a disciplined,
systematic approach designed for stability through changing times.
So what's next?
Once again, we have some bold statements to offer. We believe the long-term
secular bull market that began August 1982 is still intact, for the fundamentals
supporting it are still present. The market began in a setting where inflation
was the number one financial enemy, and the Federal Reserve is behaving as
though that is still the case. Whenever the Fed has seen the slightest potential
for increases in inflation, the required adjustment and treatments have been
fairly mild and very successful. We believe the same will be true this time, as
the Fed has announced its bias toward a tighter monetary policy. While past
performance cannot predict future results, we expect this adjustment to set the
stage for a few more years of above-average market returns. Naturally,
industries will take their turns leading various market moves over one to
three-year periods. Those that are temporarily under-priced will represent
opportunities for leadership. Those that are over-priced due to excessive
investor enthusiasm will need to be sold. We were correct a year ago in calling
the beginning of a new cyclical bull market. Our system has been in touch with
it and has captured its leadership. We sincerely hope this has been a source of
stability for your portfolio.
And we look forward to serving you during the year ahead.
Sincerely,
/s/ Craig T. Callahan
- ---------------------
Craig T. Callahan, D.B.A.
Trustee, Chief Investment Officer of the Advisor
3
<PAGE>
New International Leadership Emerges
The new cyclical bull market is not just a domestic phenomenon.
Internationally, there has been new leadership, as Asian markets have
rebounded from being one of the worst to one of the best markets. The huge
reversal for Asia not only made it perform better than Europe, but better
than all U.S. domestic sectors except Technology. Prior to the last 12
months, Asian markets had been a tremendous drag on international
investing, to the point that many investors had given up on the whole
theory of global diversification. Many newer investors are unfamiliar with
such dramatic theme changes. The four-year market from December 1994
through July 1998 was fairly constant. Internationally, Asia slumped while
Europe led. Domestically, a few industries and issues gathered momentum and
just kept going. A four-year theme, however, is much longer than normal and
thus extremely rare. Typically, sector and country leadership lasts six
months to two years.
Reversals such as those seen over the last year are normal. We expect more
of them in the future with new leaders jumping from the "sale rack" where
they had been abandoned by investors. We will use our valuation approach to
try to identify them early, as we did a year ago.
[GRAPHIC AND PHOTO OMITTED]
For complete returns for various time periods, refer to each specific fund
profile.
The MSCI EAFE Index is a market cap weighted index that is designed to
measure the performance of the stock markets in 21 countries in Europe,
Australasia and the Far East. Returns are in U.S. dollars and reflect the
reinvestment of dividends and capital gains. Individuals cannot invest in
the index itself. Data Source: Bloomberg. Past performance is not a
guarantee of future results.
Craig T. Callahan, D.B.A. Trustee,
Chief Investment Officer of the Advisor
Measuring the Market
Fall, 1998, we went on record to say a new bull market was about to begin.
Those comparing it to the final phase of the previous move would see new
leadership emerging, we added. Look back at the leadership coming off the
bottom on October 8, 1998 through September 30, 1999, and we believe you'll
see it happening. As usual, a few sectors beat the S&P 1500 Index. The rest
lagged. This theme is particularly interesting, for it reflects a contrary
nature coming off the market low.
Last fall, analysts and investors were suggesting a recession was likely to
occur during 1999. Some went so far as to use the words "depression" and
"deflation." Those expectations were based on the belief that the recession
in Asia would spread to Russia, Europe, and South America, ultimately
reaching the United States. The most "out-of-favor" industries were those
that were cyclical and economically sensitive. Two examples: Technology,
which was negatively affected by the events in Asia; and Energy, which was
virtually abandoned by investors as the per-barrel price of oil dropped
from the low-$20s to $12. Our stance was significantly different. As the
following graph shows, ICON Technology was, by far, the best performing of
our sector funds, reflecting the return of stock prices to fair value from
the deep discounts seen last fall. Technology stocks gained even more
momentum as Internet optimism took over later in the move. While returns
were not as large, Consumer Cyclicals showed gains as investors came to the
realization that the recession scenario was inaccurate. Energy, though not
an early leader off the lows, accelerated later as international oil prices
rose.
4
<PAGE>
Now compare that to the leadership seen during the final year of the
December 1994-July 1998 period. This strong change is a clear confirmation:
this is a new market. We expect the second phase of this fresh market to
have some new leadership heading into 2000. With Federal Reserve monetary
policy tightening in recent months, investors have given up on some stocks.
These issues are in an excellent position to rebound, becoming the new
leaders for the next move.
[GRAPHIC OMITTED]
For complete returns for various time periods, refer to each specific fund
profile.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted
index of 1500 U.S. companies and is comprised of the S&P 400, the S&P 500
and the S&P 600. It is comprised of 1500 stocks. The S&P SuperComposite
1500 Index is an unmanaged index that includes the reinvestment of
dividends and does not reflect deductions for commission, management fees
and expenses. Individuals cannot invest in the index itself. Source:
Morningstar Principia Pro. Past performance is not a guarantee of future
results.
Y2K...
On three fronts: the Fund's Advisor, the industry and the market. All
computers, programs and networks at the ICON Funds have been tested and we
believe they are Y2K ready. The financial services industry has been
addressing the issues for a couple of years, well before the public started
getting concerned. Verification has been required up and down the
information chain. While there can be no assurances, we are confident there
will be no disruptions in the financial services industry. Regarding the
markets, we believe there will not be a predictable influence on stock
prices. With stocks measured to be generally under-priced relative to fair
value, there is risk of missing a rally by being out of the market.
5
<PAGE>
Management Discussion & Analysis
Basic Materials
- ---------------
Performance
- -----------
The ICON Basic Materials Fund (the "Fund") opened on May 5, 1997. For the one
year ended September 30, 1999, the Fund appreciated 11.65%. The performance for
the S&P SuperComposite 1500 Index was 27.32% over that same period. Since its
inception, the Fund has depreciated 23.87%. Over that same period, the S&P
SuperComposite 1500 Index has returned 57.43%.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Basic Materials Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, is up
approximately 30% from one year ago. At that time, in early October of 1998,
market pessimism was high. Many stocks had just experienced a correction of
approximately 20%, and investors were concerned. Reasons for investor pessimism
included the Asian crisis and excessive equity valuation. As is typically the
case when investors are fearful of a market drop, stocks were able to "climb the
wall of worry" and post excellent results over the next twelve months.
The gains in the market over the last twelve months have not been without
volatility and changes in leadership. In general, large cap stocks have
outperformed smaller and mid cap stocks in a volatile market environment. Market
leadership has fluctuated over short time periods. From start to finish over the
last year, the market has been led by large cap technology stocks, which have
appreciated substantially but have been subject to significant short term
declines.
The improving economies abroad and the continued strength in the U.S. economy
have strengthened the demand for the products of many Basic Materials companies.
Despite an improving outlook, many Basic Materials stocks have trailed the
performance of the broad market over the last twelve months.
Industry Highlights
- -------------------
The Fund has seen considerable activity in the last twelve months. New industry
positions have been added and old ones sold. Based on the Advisor's quantitative
system which includes both valuation and price momentum, stocks in the
Construction and Aluminum industries were sold during the last year. New
industries added to the Fund were Chemicals (Specialty), Electrical Equipment
and Metal Fabricators.
The largest industry holding in the Fund is Electrical Equipment. Stocks in this
industry include General Electric, Honeywell, Molex and Solectron. These stocks
have posted solid gains since being added to the Fund in early 1999. These
stocks, not considered traditional Basic Materials issues, have added
diversification and large capitalization exposure to the Fund.
The second largest industry holding is Steel. Steel stocks held in the Fund
include Worthington, U.S. Steel, and Texas Industries, among others. Steel
producers have profited from the global economic strength over the past 12
months. As the U.S. economy has raced ahead and international economies have
followed, raw material producers have benefited. This has propelled many of the
stocks in the Steel industry and Basic Materials sector higher.
Current Outlook
- ---------------
The Advisor sees many attractive industry opportunities within the Fund.
Commodity related industries can be subject to significant volatility based on
fluctuations in the underlying commodity. The Fund is currently positioned in
five different industries, with approximately half of its assets in
non-commodity related industries. The diversification of the current positioning
should mitigate wild price swings that are characteristic of commodity-related
industries.
6
<PAGE>
Basic Materials
- ---------------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 98.4%
Top 10 Equity Holdings (% of Assets) 45.7%
Number of Stocks 33
Cash & Cash Equivalents 1.6%
- -----------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Nalco Chemical Company 5.4%
Ryerson Tull Inc 5.1%
Mueller Industries 5.1%
Solectron 4.8%
Kennametal 4.6%
Molex Inc. 4.6%
Honeywell 4.3%
General Electric 4.1%
Worthington Industries Inc. 4.1%
Sigma-Aldrich Corp. 3.6%
- -----------------------------------------------------------
Top Industries September 30, 1999
- -------------- ------------------
Electrical Equipment 24.5%
Steel 23.4%
Chemicals (Specialty) 20.6%
Gold/Precious Metal/Metals Mining 15.1%
Metal Fabricators 14.8%
- -----------------------------------------------------------
Performance Overview*
---------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Basic Materials Fund are since the inception of
the Fund through the dates shown and for the one year period ended
September 30, 1999. The returns are total returns, and include the
reinvestment of dividends and capital gains. Past performance does not
guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted
index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and
the S&P 600. It is comprised of 1500 stocks. The S&P SuperComposite 1500
Index is an unmanaged index that includes the reinvestment of dividends and
does not reflect deductions for commission, management fees and expenses.
Individuals cannot invest in the index itself. Last year we used the S&P
Basic Materials Index. It has been changed to a more broad-based index.
7
<PAGE>
Basic Materials
- ---------------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks 98.4%
- -------------------
Gold/Precious Metal/Metals Mining 15.1%
- ---------------------------------------
22,000 Asarco Inc. $ 589,875
7,850 Barrick Gold Corp. 170,738
37,900 Cyprus Amax Mineral
Company 743,787
38,500 Freeport-McMoran Copper
Class B 599,156
15,900 Homestake Mining Co. 146,081
35,600 INCO Ltd. 760,950
7,835 Newmont Mining Corp. 202,731
8,200 Phelps Dodge 451,512
12,300 Placer Dome Inc. 182,962
4,850 Stillwater Mining Co.(a) 130,344
- -------------------------------------------------------
Total Gold/Precious Metal/Metals Mining 3,978,136
Electrical Equipment 24.5%
- --------------------------
14,500 Emerson Electric Co. 916,219
9,200 General Electric 1,090,775
10,100 Honeywell 1,124,256
33,000 Molex Inc. 1,200,375
16,700 Rockwell International
Corp. 876,750
17,500 Solectron(a) 1,256,719
- -------------------------------------------------------
Total Electrical Equipment 6,465,094
Steel 23.4%
- -----------
31,700 AK Steel Holding Corp. 578,525
39,900 Allegheny Teledyne Inc. 673,312
94,000 Bethleham Steel(a) 693,250
15,800 Nucor Corp. 752,475
23,100 Texas Industries Inc. 854,700
35,600 UCAR International Inc. 812,125
28,500 USX-US Steel 733,875
63,500 Worthington Industries Inc. 1,079,500
- -------------------------------------------------------
Total Steel 6,177,762
Chemicals (Specialty) 20.6%
- ---------------------------
22,100 Ecolab Inc. 754,163
20,500 Great Lakes Chemical 780,281
26,100 Hercules 747,112
22,900 International Flavors
& Fragrance 790,050
28,000 Nalco Chemical Company 1,414,000
30,000 Sigma-Aldrich Corp. 952,500
- -------------------------------------------------------
Total Chemicals (Specialty) 5,438,106
8
<PAGE>
Basic Materials
- ---------------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks - Continued
- -------------------------
Metal Fabricators 14.8%
- -----------------------
46,900 Kennametal Inc. $ 1,213,538
45,200 Mueller Industries(a) 1,341,875
58,100 Ryerson Tull Inc. 1,343,563
- -------------------------------------------------------
Total Metal Fabricators 3,898,976
Total Common Stocks
(Cost $25,683,948) 25,958,074
- -------------------------------------------------------
Short-Term Commercial Notes 1.6%
- -------------------------------------------------------
$339,943 General Mills Demand Note
4.98% 3/3/00 339,943
- -------------------------------------------------------
80,529 Wisconsin Electric Demand Note
5.02% 4/4/00 80,529
- -------------------------------------------------------
14,283 Warner Lambert Demand Note
5.02% 2/26/00 14,283
- -------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $434,755) 434,755
- -------------------------------------------------------
Total Investments 100.0%
(Cost $26,118,703) 26,392,829
- -------------------------------------------------------
Liabilities less other Assets (19,530)
- -------------------------------------------------------
Net Assets 100.0% $ 26,373,299
The accompanying notes are an integral part of the financial statements.
(a) non-income producing security
9
<PAGE>
Consumer Cyclicals
- ------------------
Performance
- -----------
The ICON Consumer Cyclicals Fund (the "Fund") opened on July 9, 1997. For the
one year ended September 30, 1999, the Fund appreciated 25.78%. The performance
for the S&P SuperComposite 1500 Index was 27.32% over that same period. Since
its inception, the Fund has depreciated 1.01%. Over that same period, the S&P
SuperComposite 1500 Index has returned 43.38%.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Consumer Cyclicals Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, is up
approximately 30% from one year ago. At that time, in early October of 1998,
market pessimism was high. Many stocks had just experienced a correction of
approximately 20%, and investors were concerned. Reasons for investor pessimism
included the Asian crisis and excessive equity valuation. As is typically the
case when investors are fearful of a market drop, stocks were able to "climb the
wall of worry" and post excellent results over the next twelve months.
The gains in the market over the last twelve months have not been without
volatility and changes in leadership. In general, large cap stocks have
outperformed smaller and mid cap stocks in a volatile market environment. Market
leadership has fluctuated over short time periods. From start to finish over the
last year, the market has been led by large cap technology stocks, which have
appreciated substantially but have been subject to significant short term
declines.
The prolonged strength in consumer spending has improved the bottom line of many
Consumer Cyclical companies. The Retail industry in particular has benefited
from the spendthrift consumer, as companies like Gap, Nike, and Toys 'R Us
continue to attract customers. Investing in this sector over the last twelve
months has provided mixed results, however. The sector has had both industry
winners and losers.
Industry Highlights
- -------------------
The Fund has seen several new industry additions in the last twelve months. New
industry positions include Machinery (Diversified), Manufacturing (Specialized)
and Manufacturing (Diversified). These investments have focused on the
opportunities the Advisor believes are available within certain Capital Goods
oriented industries. Based on the Advisor's quantitative system which includes
both valuation and price momentum, stocks in the Housewares industry were sold
during the last year.
The largest industry holding is Retail (Building Supplies). Stocks held in this
industry include Home Depot, Lowes, and Fastenal, among others. Home Depot,
which has long been a favorite of Wall Street, continued its impressive track
record in the last twelve months. "Do-it-yourselfers" have continued spending
their disposable income at these Retail (Building Supplies) outlets. The strong
domestic economy and the market's continued infatuation with large cap stocks
were major reasons why Home Depot's stock approximately doubled over the last
twelve months.
The second largest industry holding in the Fund is Services
(Advertising/Marketing). This industry has consistently maintained its large
weighting in the Fund over the last twelve months. Stocks in this industry
include Axciom, Catalina Marketing and True North Communications. This
industry's valuation and momentum characteristics warrant its continued
inclusion in the Fund.
Current Outlook
- ---------------
The Advisor sees several attractive industry opportunities within the Fund.
Currently the Fund is positioned in two major areas: Retail and Capital Goods.
The continued resilience in the domestic economy has been a boon to both of
these areas. The Advisor's valuation and price momentum selection criteria
suggest that the Fund is positioned correctly for the next market move. The
Fund's broad industry composition should mitigate some of the risk
characteristics of many sector funds.
10
<PAGE>
Consumer Cyclicals
- ------------------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 97.5%
Top 10 Equity Holdings (% of Assets) 35.0%
Number of Stocks 47
Cash & Cash Equivalents 2.6%
- --------------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Home Depot 5.0%
Lowes Companies 4.0%
True North Communications 3.7%
Talbots Inc. 3.6%
Fastenal Co. 3.5%
Valassis Communication 3.3%
Omnicom Group 3.3%
Interpublic GRP Co. Inc. 3.1%
Case Equipment 2.8%
Staples Inc. 2.7%
- --------------------------------------------------------------
Top Industries September 30, 1999
- -------------- ------------------
Retail (Building Supplies) 17.0%
Services (Advertising/Marketing) 16.4%
Retail Specialty (Apparel) 12.4%
Machinery (Diversified) 11.8%
Specialty Printing 10.3%
Manufacturing (Specialized) 8.8%
Retail (Specialty) 8.6%
Footwear 7.5%
Retail (Home Shopping) 4.7%
- --------------------------------------------------------------
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Consumer Cyclicals Fund are since the inception of
the Fund through the dates shown and for the one year period ended
September 30, 1999. The returns are total returns, and include the
reinvestment of dividends and capital gains. Past performance does not
guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted
index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and
the S&P 600. It is comprised of 1500 stocks. The S&P SuperComposite 1500
Index is an unmanaged index that includes the reinvestment of dividends and
does not reflect deductions for commission, management fees and expenses.
Individuals cannot invest in the index itself.
11
<PAGE>
Consumer Cyclicals
- ------------------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks 97.5%
- -------------------
Specialty Printing 10.3%
- ------------------------
35,000 Banta Corp. $ 780,938
49,600 Bowne & Co. 598,300
18,000 Consolidated Graphics(a) 758,250
29,000 Deluxe Corp. 986,000
23,100 Donnelley RR & Sons 667,013
40,950 Valassis Communications(a) 1,799,241
- -------------------------------------------------------------
Total Specialty Printing 5,589,742
Retail (Home Shopping) 4.7%
- ---------------------------
11,000 CDW Computer Centers Inc.(a) 537,625
16,200 Lands End Inc.(a) 1,069,200
63,100 Micro Warehouse Inc.(a) 761,144
22,500 Systmax Inc.(a) 188,437
- -------------------------------------------------------------
Total Retail (Home Shopping) 2,556,406
Retail (Specialty) 8.6%
- -----------------------
45,700 Autozone Inc.(a) 1,282,456
67,200 Office Depot(a) 684,600
82,400 OfficeMax Inc.(a) 478,950
68,250 Staples Inc.(a) 1,488,703
47,700 Toys 'R Us Inc.(a) 715,500
- -------------------------------------------------------------
Total Retail (Specialty) 4,650,209
Retail Specialty (Apparel) 12.4%
- --------------------------------
39,825 Gap Inc. 1,274,400
35,600 The Limited Inc. 1,361,700
35,000 Mens Wearhouse Inc.(a) 752,500
46,200 TJX Cos Inc. 1,296,487
44,000 Talbots Inc. 1,977,250
5,086 Too Inc.(a) 91,225
- -------------------------------------------------------------
Total Retail Specialty (Apparel) 6,753,562
Services (Advertising/Marketing) 16.4%
- -------------------------------------------------------------
63,000 Axciom Corp.(a) 1,238,344
57,000 ADVO Inc.(a) 1,136,437
12,900 Catalina Marketing Corp.(a) 1,094,081
40,800 Interpublic GRP Co. Inc. 1,677,900
22,600 Omnicom Group 1,789,637
55,000 True North Communications 2,000,625
- -------------------------------------------------------------
Total Services (Advertising/Marketing) 8,937,024
Manufacturing (Specialized) 8.8%
- --------------------------------
20,200 Avery Dennison Co. 1,065,550
29,500 Diebold 682,187
33,500 Pall Corp. 776,781
25,100 Parker Hannifin 1,124,794
23,000 Sealed Air Corp.(a) 1,180,188
- -------------------------------------------------------------
Total Manufacturing (Specialized) 4,829,500
Footwear 7.5%
- -------------
20,900 Nike Class B 1,188,687
72,300 Reebok International Ltd.(a) 772,706
98,100 Stride Rite Corp. 686,700
36,200 Timberland Companya 1,414,063
- -------------------------------------------------------------
Total Footwear 4,062,156
12
<PAGE>
Consumer Cyclicals
- ------------------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks - continued
- -------------------------
Retail (Building Supplies) 17.0%
- --------------------------------
40,000 Fastenal Co. $ 1,885,000
39,700 Home Depot 2,724,413
56,000 Hughes Supply Inc. 1,218,000
45,000 Lowes Companies 2,193,750
58,000 Sherwin Williams 1,214,375
- -------------------------------------------------------------
Total Retail (Building Supplies) 9,235,538
Machinery (Diversified) 11.8%
- -----------------------------
31,100 Case Equipment 1,549,169
19,000 Caterpillar 1,041,438
17,400 Cooper Industries 813,450
23,100 Deere & Co. 893,681
26,600 Dover Co. 1,087,275
18,700 Ingersoll Rand Co. 1,027,331
- -------------------------------------------------------------
Total Machinery (Diversified) 6,412,344
Total Common Stocks
(Cost $53,586,553) 53,026,481
- -------------------------------------------------------------
Short-Term Commercial Notes 2.6%
- -------------------------------------------------------------
$567,107 General Mills Demand Note
4.98% 3/3/00 567,107
- -------------------------------------------------------------
22,626 Sara Lee Demand Note
4.98% 4/26/00 22,626
- -------------------------------------------------------------
203,194 Wisconsin Electric Demand Note
5.02% 4/4/00 203,194
- -------------------------------------------------------------
295,024 Warner Lambert Demand Note
5.02% 2/26/00 295,024
- -------------------------------------------------------------
314,420 American Family Demand Note
5.02% 3/21/00 314,420
- -------------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $1,402,371) 1,402,371
- -------------------------------------------------------------
Total Investments 100.1%
(Cost $54,988,924) 54,428,852
- -------------------------------------------------------------
Liabilities less other Assets (0.1%) (77,636)
- -------------------------------------------------------------
Net Assets 100.0% $ 54,351,216
The accompanying notes are an integral part of the financial statements.
(a) non-income producing security
13
<PAGE>
Energy
- ------
Performance
- -----------
The ICON Energy Fund (the "Fund") opened on November 5, 1997. For the one year
ended September 30, 1999, the Fund appreciated 27.28%. The performance for the
S&P SuperComposite 1500 Index was 27.32% over that same period. Since its
inception, the Fund has depreciated 19.18%. Over that same period, the S&P
SuperComposite 1500 Index has returned 35.97%.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Energy Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, is up
approximately 30% from one year ago. At that time, in early October of 1998,
market pessimism was high. Many stocks had just experienced a correction of
approximately 20%, and investors were concerned. Reasons for investor pessimism
included the Asian crisis and excessive equity valuation. As is typically the
case when investors are fearful of a market drop, stocks were able to "climb the
wall of worry" and post excellent results over the next twelve months.
The gains in the market over the last twelve months have not been without
volatility and changes in leadership. In general, large cap stocks have
outperformed smaller and mid cap stocks in a volatile market environment. Market
leadership has fluctuated over short time periods. From start to finish over the
last year, the market has been led by large cap technology stocks, which have
appreciated substantially but have been subject to significant short term
declines.
The returns of Energy stocks are highly correlated with the price of oil.
Additionally, as with most commodity-related industries, Energy stocks generally
experience more volatility than do typical stocks. Fortunately for Energy
investors, the price of oil bottomed and then headed much higher over the last
twelve months. After reaching nearly ten dollars per barrel in late 1998 and
early 1999, oil prices surged and closed at the end of September, 1999 at nearly
twenty four dollars per barrel.
Industry Highlights
- -------------------
The Fund has maintained its same industry composition during the last twelve
months. The Advisor's quantitative system, which includes both valuation and
price momentum, has dictated holding both Oil & Gas (Drilling & Equip.) stocks
and Oil & Gas (Exploration/Prod.) stocks. Relative to other industries in the
Energy sector, these industries generally are smaller cap and experience more
price fluctuation. The Advisor remains very bullish on these two industry
groups.
The largest of the two industry holdings in the Fund is Oil & Gas (Drilling &
Equip.). Stocks in this industry include Schlumberger, Noble Drilling and
Baker-Hughes. Schlumberger, the largest stock in the industry with a market
capitalization in excess of $30 billion, has been a strong performer. As
previously mentioned, Oil & Gas (Drilling & Equip.) stocks fluctuate
considerably based on movements in the price of oil. In the last twelve months,
these stocks have benefited from potential production cuts and increased demand
for oil.
The second largest industry holding is Oil & Gas (Exploration/Prod.). Stocks
held in this industry include Apache, Kerr-McGee and Union Pacific Resources. As
the most recent Fund annual period was coming to a close, this industry was
exhibiting excellent price momentum. Since these stocks as well as others in the
Energy sector struggled in 1997 and 1998, the Advisor sees considerable
appreciation potential in the next twelve to eighteen months. The Advisor
expects that the share price increases in this sector will continue.
Current Outlook
- ---------------
The Advisor remains focused in two industry groups: Oil & Gas (Drilling &
Equip.) and Oil & Gas (Exploration/Prod.). Commodity related industries can be
subject to significant volatility based on fluctuations in the underlying
commodity. This hurt the performance of the Fund in 1998 and early 1999 but has
helped it since. The Advisor does not speculate on the future direction of
energy prices, but trends in the recent past have been promising. The Advisor's
quantitative investment strategies continue to dictate holding both Oil & Gas
(Drilling & Equip.) and Oil & Gas (Exploration/Prod.) stocks in the Fund.
14
<PAGE>
Energy
- ------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 96.1%
Top 10 Equity Holdings (% of Net Assets) 49.3%
Number of Stocks 22
Cash & Cash Equivalents 3.9%
- --------------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Kerr-McGee Co. 5.3%
Weatherford International 5.1%
Helmerich & Payne 5.1%
Noble Drilling Corp. 5.0%
Schlumberger Ltd. 4.9%
Global Marine 4.8%
Smith International 4.8%
Baker-Hughes, Inc. 4.8%
B J Services 4.8%
Nabors Industries 4.7%
- --------------------------------------------------------------
Top Industries September 30, 1999
- -------------- ------------------
Oil & Gas (Drilling & Equip.) 61.8%
Oil & Gas (Exploration/Prod.) 30.2%
Oil (Domestic Integrated) 4.1%
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Energy Fund are since the inception of the Fund
through the dates shown and for the one year period ended September 30,
1999. The returns are total returns, and include the reinvestment of
dividends and capital gains. Past performance does not guarantee future
results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted
index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and
the S&P 600. It is comprised of 1500 stocks. The S&P SuperComposite 1500
Index is an unmanaged index that includes the reinvestment of dividends and
does not reflect deductions for commission, management fees and expenses.
Individuals cannot invest in the index itself. Last year we used the S&P
Energy Index. It has been changed to a more broad-based index.
15
<PAGE>
Energy
- ------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks 96.1%
- -------------------
Oil & Gas (Drilling & Equip.) 61.8%
- -----------------------------------
31,700 Baker-Hughes, Inc. $ 919,300
28,800 B J Servicesa 916,200
45,100 Ensco International, Inc. 814,619
56,500 Global Marine, Inc.(a) 928,719
21,600 Halliburton Co. 885,600
38,600 Helmerich & Payne 977,062
35,900 Nabors Industries(a) 897,500
44,300 Noble Drilling Corp.(a) 969,063
15,004 Schlumberger Ltd. 934,937
22,800 Smith International, Inc.(a) 923,400
33,000 Tidewater, Inc. 841,500
28,900 Transocean Offshore, Inc. 885,063
30,765 Weatherford International 984,480
- ------------------------------------------------------------
Total Oil & Gas (Drilling & Equip.) 11,877,443
Oil & Gas (Exploration/Prod.) 30.2%
- -----------------------------------
20,000 Anadarko Petroleum Corp. 611,250
20,600 Apache Corp. 889,662
21,100 Burlington Resources Inc. 775,425
11,300 Devon Energy Corporation 468,244
18,594 Kerr-McGee Co. 1,023,832
13,000 Murphy Oil Corp. 702,812
19,400 Noble Affiliates 562,600
48,400 Union Pacific Resources
Group 777,425
- ------------------------------------------------------------
Total Oil & Gas (Exploration/Prod.) 5,811,250
Oil (Domestic Integrated) 4.1%
- ------------------------------
21,600 Unocal Corp. 800,550
- ------------------------------------------------------------
Total Oil (Domestic Integrated) 800,550
Total Common Stocks
(Cost $19,911,878) $ 18,489,243
- ------------------------------------------------------------
Short-Term Commercial Notes 3.9%
- ------------------------------------------------------------
$222,122 General Mills Demand Note
4.98% 3/3/00 222,122
- ------------------------------------------------------------
459,253 Sara Lee Demand Note
4.98% 4/26/00 459,253
- ------------------------------------------------------------
68,432 Wisconsin Electric Demand Note
5.02% 4/4/00 68,432
- ------------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $749,807) 749,807
- ------------------------------------------------------------
Total Investments 100.0%
(Cost $20,661,685) 19,239,050
- ------------------------------------------------------------
Liabilities less other Assets (9,365)
- ------------------------------------------------------------
Net Assets 100.0% $ 19,229,685
The accompanying notes are an integral part of the financial statements.
(a) non-income producing security
16
<PAGE>
Financial Services
- ------------------
Performance
- -----------
The ICON Financial Services Fund (the "Fund") opened on July 1, 1997. For the
one year ended September 30, 1999, the Fund appreciated 10.05%. The performance
for the S&P SuperComposite 1500 Index was 27.32% over that same period. Since
its inception, the Fund has returned 3.57%. Over that same period, the S&P
SuperComposite 1500 Index has returned 46.07%.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Financial Services Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, is up
approximately 30% from one year ago. At that time, in early October of 1998,
market pessimism was high. Many stocks had just experienced a correction of
approximately 20%, and investors were concerned. Reasons for investor pessimism
included the Asian crisis and excessive equity valuation. As is typically the
case when investors are fearful of a market drop, stocks were able to "climb the
wall of worry" and post excellent results over the next twelve months.
The gains in the market over the last twelve months have not been without
volatility and changes in leadership. In general, large cap stocks have
outperformed smaller and mid cap stocks in a volatile market environment. Market
leadership has fluctuated over short time periods. From start to finish over the
last year, the market has been led by large cap technology stocks, which have
appreciated substantially but have been subject to significant short term
declines.
Financial Services stocks have struggled over the past year. Since these stocks
are highly sensitive to changes in interest rates, they have performed poorly
over the last twelve months as interest rates have increased. The yield on the
30-year government bond has increased from less than 5.0% to greater than 6.0%
in just 12 months. Given the significant rate increase and the fact that many
Financial Services stocks look overvalued to the Advisor, it is no surprise that
these stocks have posted disappointing performance in the last twelve months.
The Advisor continues to look for the best industry opportunities within the
sector.
Industry Highlights
- -------------------
The Fund has maintained many of its industry holdings over the duration of the
last twelve months. The one exception is the Insurance (Multi-Line) industry,
which was sold in late 1998 as it no longer met the standards of the Advisor's
quantitative system.
The largest industry holding in the Fund is Consumer Finance. Stocks in this
industry include Household International, MBNA and Capital One Financial.
Consumer Finance companies compete in a variety of markets, including credit
cards, consumer loans, and various other financial services. Although rising
interest rates have had a negative impact on these stocks, consumer demand for
credit cards and other sources of money remain strong. Valuations in the
industry remain favorable.
The second largest industry holding is Financial (Diversified). Financial
(Diversified) stocks held in the Fund include such household names as American
Express, Freddie Mac and Citigroup. Companies competing in this industry
typically have very large market capitalizations. American Express, for example,
has a market capitalization in excess of $60 billion. Its diverse product line
includes travel-related functions, financial advisory services and international
banking. Large capitalization stocks continue to be favored by investors in the
current market environment.
Current Outlook
- ---------------
The Advisor sees select opportunities within the Fund. Rising interest rates and
overvaluations of stocks in the Financial sector have made it difficult for
investors to make money in this area. This is a significant change from the last
several years, which continually witnessed Financial Services stocks leading the
bull market. Based on their current valuation and price momentum
characteristics, Financial Services stocks are not poised for the types of gains
they have made the last several years. However, should interest rates fall, the
Fund could perform very well.
17
<PAGE>
Financial Services
- ------------------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 95.3%
Top 10 Equity Holdings (% of Net Assets) 55.8%
Number of Stocks 24
Cash & Cash Equivalents 4.7%
- ----------------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Household International Inc. 6.7%
Morgan (J.P.) & Co. Inc. 6.2%
MBNA Corp. 6.1%
Chase Manhattan Corp. 5.6%
Capital One Financial Corp. 5.5%
American Express Company 5.4%
Countrywide Credit Ind. Inc. 5.3%
Providian Financial Corp. 5.0%
Cash America Intl. 5.0%
Citigroup Inc. 5.0%
- ----------------------------------------------------------------
Top Industries September 30, 1999
- -------------- ------------------
Consumer Finance 33.7%
Financial (Diversified) 24.8%
Banks & Bank Holding Companies 19.8%
Insurance (Property/Casualty) 17.0%
- ----------------------------------------------------------------
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Financial Services Fund are since the inception of
the Fund through the dates shown and for the one year period ended
September 30, 1999. The returns are total returns, and include the
reinvestment of dividends and capital gains. Past performance does not
guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted
index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and
the S&P 600. It is comprised of 1500 stocks. The S&P SuperComposite 1500
Index is an unmanaged index that includes the reinvestment of dividends and
does not reflect deductions for commission, management fees and expenses.
Individuals cannot invest in the index itself. Last year we used the Lipper
Financial Services Fund Index. It has been changed to a more broad-based
index.
18
<PAGE>
Financial Services
- ------------------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks 95.3%
- -------------------
Financial (Diversified) 24.8%
- -----------------------------
2,200 American Express Company $ 296,175
3,200 American General Corp. 202,200
6,225 Citigroup Inc. 273,900
3,600 Freddie Mac 187,200
3,000 Fannie Mae 188,062
2,400 Morgan Stanley
Dean Witter & Co. 214,050
- ----------------------------------------------------------------
Total Financial (Diversified) 1,361,587
Banks & Bank Holding Companies 19.8%
- ------------------------------------
3,929 BankAmerica Corp. 218,796
4,100 Chase Manhattan Corp. 309,037
6,100 First Union Corp. 216,931
3,000 Morgan (J.P.) & Co. Inc. 342,750
- ----------------------------------------------------------------
Total Banks & Bank Holding
Companies 1,087,514
Consumer Finance 33.7%
- ----------------------
7,800 Capital One Financial Corp. 304,200
29,200 Cash America Intl. 275,575
9,000 Countrywide Credit Ind. Inc. 290,250
9,100 Household International Inc. 365,138
14,750 MBNA Corp. 336,484
3,500 Providian Financial Corp. 277,156
- ----------------------------------------------------------------
Total Consumer Finance 1,848,803
Insurance (Property/Casualty) 17.0%
- -----------------------------------
4,300 Allstate Corp. $ 107,231
4,300 American Financial Grp., Inc. 120,669
2 Berkshire Hathaway
Inc. Class A(a) 110,000
2,200 Chubb Corp. 109,588
4,000 Cincinnati Financial Corp. 150,125
1,000 Progressive Corp. 81,688
4,000 Safeco Corp. 112,000
5,160 St Paul Cos. 141,900
- ----------------------------------------------------------------
Total Insurance (Property/Casualty) 933,201
Total Common Stocks
(Cost $5,989,978) 5,231,105
- ----------------------------------------------------------------
Short-Term Commercial Notes 4.7%
- ----------------------------------------------------------------
$110,638 Wisconsin Electric Demand Note
5.02% 4/4/00 110,638
- ----------------------------------------------------------------
146,768 Warner Lambert Demand Note
5.02% 2/26/00 146,768
- ----------------------------------------------------------------
950 Sara Lee Demand Note
4.98% 4/26/00 950
- ----------------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $258,356) 258,356
- ----------------------------------------------------------------
Total Investments 100.0%
(Cost $6,248,334) 5,489,461
- ----------------------------------------------------------------
Liabilities less other Assets (6,241)
- ----------------------------------------------------------------
Net Assets 100.0% $ 5,483,220
The accompanying notes are an integral part of the financial statements.
(a) non-income producing security
19
<PAGE>
Healthcare
- ----------
Performance
- -----------
The ICON Healthcare Fund (the "Fund") opened on February 24, 1997. For the one
year ended September 30, 1999, the Fund depreciated 5.34%. The performance for
the S&P SuperComposite 1500 Index was 27.32% over that same period. Since its
inception, the Fund has returned 15.71%. Over that same period, the S&P
SuperComposite 1500 Index has returned 61.47%.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Healthcare Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, is up
approximately 30% from one year ago. At that time, in early October of 1998,
market pessimism was high. Many stocks had just experienced a correction of
approximately 20%, and investors were concerned. Reasons for investor pessimism
included the Asian crisis and excessive equity valuation. As is typically the
case when investors are fearful of a market drop, stocks were able to "climb the
wall of worry" and post excellent results over the next twelve months.
The gains in the market over the last twelve months have not been without
volatility and changes in leadership. In general, large cap stocks have
outperformed smaller and mid cap stocks in a volatile market environment. Market
leadership has fluctuated over short time periods. From start to finish over the
last year, the market has been led by large cap technology stocks, which have
appreciated substantially but have been subject to significant short term
declines.
Many Healthcare stocks have also been market leaders over this extended bull
market. The returns in Healthcare stocks over the last twelve months were
disappointing to investors who had come to expect 20% annual gains. Stocks in
the Drugs/Pharmaceutical industry have long been favorites of Wall Street. Some
investors have started to question their high valuations, as many of these
stocks have posted high price/earnings ratios. Supporters of these stocks have
argued that investors are still willing to a pay a premium for high quality
growth stocks, and thus justify continued purchases of such high multiple
stocks. The Advisor believes that opportunities do exist in this sector, but not
in the large capitalization growth stocks that have received the most investor
attention.
Industry Highlights
- -------------------
The Fund has seen considerable activity in the last twelve months. One new
industry position has been added and two have been sold. Two industries sold
during the last twelve months were the Diversified and Drugs/Pharmaceuticals
positions. These industries appreciated substantially after being purchased and
were sold when they no longer fit the Advisor's quantitative investment
strategy. The Advisor measured both industries to be overvalued when they were
sold. The new industry added to the Fund was Healthcare (Drugs), which offers
good growth potential without excessive valuations.
The largest industry holding in the Fund is Healthcare (Drugs). Stocks in this
industry include Alpharma, Mylan Labs and Medimmune. These companies offer very
attractive growth potential at a reasonable price. Although these stocks have
posted disappointing short term results, the Advisor is still bullish on the
prospects in this industry.
The second largest industry holding is Managed Care. Managed Care stocks held in
the Fund include Aetna, United Healthcare and Express Scripts. Managed care
companies are playing an increasingly large role in the Healthcare sector of our
economy. The industry was performing well until the recent quarter, when a few
of the large capitalization stocks in the industry stumbled. The Advisor is
still optimistic on the prospects for the industry.
Current Outlook
- ---------------
The Advisor sees many attractive industry opportunities within the Fund;
however, the Advisor has not focused on the same stocks that most Healthcare
Funds own. The Advisor has recently avoided the large capitalization
Drugs/Pharmaceutical and Diversified industries because of their sky-high
valuations. The Advisor has instead focused on industries offering good growth
prospects at reasonable prices.
20
<PAGE>
Healthcare
- ----------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 95.9%
Top 10 Equity Holdings (% of Assets) 47.8%
Number of Stocks 28
Cash & Cash Equivalents 4.2%
- ----------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Medimmune 5.6%
First Health Group Corp. 5.5%
Jones Pharma Inc. 5.3%
Alpharma Inc. Class A 5.1%
Guidant Corp. 5.0%
Express Scripts Inc. Class A 4.7%
Barr Laboratories Inc. 4.3%
Medtronic Inc. 4.2%
United Healthcare Corp. 4.1%
Manor Care Inc. 4.0%
- ----------------------------------------------------------
Top Industries September 30, 199
- -------------- -----------------
Healthcare (Drugs) 32.0%
Managed Care 29.3%
Medical Products/Supplies 26.8%
Healthcare (Long Term Care) 7.8%
- ----------------------------------------------------------
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Healthcare Fund are since the inception of the
Fund through the dates shown and for the one year period ended September
30, 1999. The returns are total returns, and include the reinvestment of
dividends and capital gains. Past performance does not guarantee future
results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted
index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and
the S&P 600. It is comprised of 1500 stocks. The S&P SuperComposite 1500
Index is an unmanaged index that includes the reinvestment of dividends and
does not reflect deductions for commission, management fees and expenses.
Individuals cannot invest in the index itself. Last year we used the Lipper
Health/Biotechnology Funds Index. It has been changed to a more broad-based
index.
21
<PAGE>
Healthcare
- ----------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks 95.9%
- -------------------
Healthcare (Long Term Care) 7.8%
- --------------------------------
214,700 Beverly Enterprises Inc.(a) $ 912,475
57,300 Manor Care Inc.(a) 984,844
- ----------------------------------------------------------------
Total Healthcare (Long Term Care) 1,897,319
Managed Care 29.3%
- ------------------
11,900 Aetna Life and Casualty Co. 586,075
54,000 Coventry HealthCare Inc.(a) 513,000
14,900 Express Scripts Inc. Class A(a) 1,165,925
60,400 First Health Group Corp.(a) 1,355,225
82,600 Foundation Health System
Class A(a) 779,538
48,800 Humana Inc.(a) 335,500
51,200 Oxford Health Plans(a) 640,000
13,150 Pacificare Health Systems(a) 568,737
56,600 Phycor, Inc.(a) 247,625
20,750 United Healthcare Corp. 1,010,266
- ----------------------------------------------------------------
Total Managed Care 7,201,891
Healthcare (Drugs) 32.0%
- ------------------------
35,800 Alpharma Inc. Class A 1,264,187
33,000 Barr Laboratories Inc.(a) 1,047,750
42,100 ICN Pharmaceuticals Inc. 723,594
39,450 Jones Pharma Inc. 1,300,617
13,800 Medimmune(a) 1,375,254
39,000 Mylan Laboratories 716,625
10,700 Sepracor(a) 807,850
20,500 Watson Pharmaceuticals Inc.(a) 626,533
- ----------------------------------------------------------------
Total Healthcare (Drugs) 7,862,410
Medical Products/Supplies 26.8%
- -------------------------------
12,000 Bausch & Lomb Inc. $ 791,250
14,200 Baxter International Inc. 855,550
23,500 Becton Dickinson Co. 659,469
24,900 Biomet Inc. 655,181
23,800 Boston Scientific Corp.(a) 587,562
22,800 Guidant Corp. 1,222,650
28,800 Medtronic, Inc. 1,022,400
15,500 Stryker Corp. 792,438
- ----------------------------------------------------------------
Total Medical Products/Supplies 6,586,500
22
<PAGE>
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks - Continued
- -------------------------
Total Common Stocks
(Cost $26,257,498) 23,548,120
- ----------------------------------------------------------------
Short-Term Commercial Notes 4.2%
- ----------------------------------------------------------------
$446,820 General Mills Demand Note
4.98% 3/3/00 446,820
- ----------------------------------------------------------------
294,657 Warner Lambert Demand Note
5.02% 2/26/00 294,657
- ----------------------------------------------------------------
283,636 Pitney Bowes Demand Note
4.98% 2/04/00 283,636
- ----------------------------------------------------------------
11,292 Wisconsin Electric Demand Note
5.02% 4/4/00 11,292
- ----------------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $1,036,405) 1,036,405
- ----------------------------------------------------------------
Total Investments 100.1%
(Cost $27,293,903) 24,584,525
- ----------------------------------------------------------------
Liabilities less other Assets (0.1%) (34,916)
- ----------------------------------------------------------------
Net Assets 100.0% $ 24,549,609
The accompanying notes are an integral part of the financial statements.
(a) non-income producing security
23
<PAGE>
Leisure
- -------
Performance
- -----------
The ICON Leisure Fund (the "Fund") opened on May 9, 1997. For the one year ended
September 30, 1999, the Fund appreciated 14.76%. The performance for the S&P
SuperComposite 1500 Index was 27.32% over that same period. Since its inception,
the Fund has returned 35.70%. Over that same period, the S&P SuperComposite 1500
Index has returned 58.34%.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Leisure Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, is up
approximately 30% from one year ago. At that time, in early October of 1998,
market pessimism was high. Many stocks had just experienced a correction of
approximately 20%, and investors were concerned. Reasons for investor pessimism
included the Asian crisis and excessive equity valuation. As is typically the
case when investors are fearful of a market drop, stocks were able to "climb the
wall of worry" and post excellent results over the next twelve months.
The gains in the market over the last twelve months have not been without
volatility and changes in leadership. In general, large cap stocks have
outperformed smaller and mid cap stocks in a volatile market environment. Market
leadership has fluctuated over short time periods. From start to finish over the
last year, the market has been led by large cap technology stocks, which have
appreciated substantially but have been subject to significant short-term
declines.
The improving economies abroad and the continued strength in the U.S. economy
have strengthened the demand for the products of many Leisure companies. These
stocks have performed well as the consumer continues to spend discretionary
income on Leisure-related activities. The long term economic expansion and stock
market appreciation have made many Leisure activities seemingly affordable to
all.
Industry Highlights
- -------------------
The Fund has seen considerable activity in the last twelve months. New industry
positions have been added and old ones sold. Based on the Advisor's quantitative
system which includes both valuation and price momentum, stocks in the
Broadcasting industry were sold during the last year. These stocks, including
TCI (since taken over by AT&T) and Comcast, were sold for significant gains. New
industries added to the Fund were Lodging-Hotels and Leisure Time Products.
The largest industry holding in the Fund is Gaming (Lottery & Parimutuel). The
Fund's four Gaming holdings are Harrah's, Int'l Game Technology, Mandalay Resort
Group (formerly Circus Circus), and Mirage Resorts. The strong domestic economy
and improvements in the Asian economies have improved the bottom line of many
Gaming companies. They continue to build new projects and focus their
advertising on attracting families. This success has translated into recovering
share prices for many of the Gaming stocks that have trailed the market for the
last few years.
The second largest industry holding is Restaurants. Prominent Restaurant stocks
held in the Fund include McDonalds, Starbucks, and Tricon Global Restaurants.
McDonalds has bounced back after being declared dead by many Restaurant
analysts, as its share price is up nearly 50% over the last twelve months.
Restaurant stocks have remained a key long term holding since the inception of
the Fund.
Current Outlook
- ---------------
The Advisor sees many attractive industry opportunities within the Fund. The
Fund is currently positioned in six different industries, all of which have
favorable valuation and price momentum characteristics. The Leisure sector
offers ample opportunity for diversification as many Leisure industries operate
in very different markets. The Fund also holds both cyclical and non-cyclical
stocks. This diversification should reduce the volatility relative to other
highly concentrated leisure funds.
24
<PAGE>
Leisure
- -------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 97.5%
Top 10 Equity Holdings (% of Net Assets) 58.8%
Number of Stocks 27
Cash & Cash Equivalents 2.5%
- -------------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Harrah's Entertainment, Inc. 8.3%
Mandalay Resort Group 7.2%
UST Inc. 6.3%
Int'l Game Technology 6.3%
Marriott Int'l Class A 5.9%
Philip Morris Co. Inc. 5.4%
McDonalds Corp. 5.3%
Promus Hotel Corp. 5.0%
Mirage Resorts Inc. 4.8%
Prime Hospitality Corp. 4.3%
- -------------------------------------------------------------
Top Industries September 30, 1999
- -------------- ------------------
Gaming (Lottery & Parimutuel) 26.7%
Restaurants 25.3%
Tobacco 17.1%
Lodging-Hotels 17.0%
Leisure Time Products 11.5%
- -------------------------------------------------------------
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Leisure Fund are since the inception of the Fund
through the dates shown and for the one year period ended September 30,
1999. The returns are total returns, and include the reinvestment of
dividends and capital gains. Past performance does not guarantee future
results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted
index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and
the S&P 600. It is comprised of 1500 stocks. The S&P SuperComposite 1500
Index is an unmanaged index that includes the reinvestment of dividends and
does not reflect deductions for commission, management fees and expenses.
Individuals cannot invest in the index itself. Last year we used the S&P
Entertainment/Leisure Composite Index. It has been changed to a more
broad-based index.
25
<PAGE>
Leisure
- -------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks 97.5%
- -------------------
Tobacco 13.7%
- -------------
49,600 Philip Morris Cos. Inc. 1,695,700
66,300 UST Inc. 2,001,431
23,666 RJ Reynolds Tobacco
Holdings 638,982
- -------------------------------------------------------------
Total Tobacco 4,336,113
Lodging-Hotels 17.0%
- --------------------
59,200 Hilton Hotels Corp. 584,600
57,100 Marriott Int'l Class A 1,866,456
168,800 Prime Hospitality Corp.(a) 1,350,400
48,200 Promus Hotel Corp.(a) 1,569,513
- -------------------------------------------------------------
Total Lodging-Hotels 5,370,969
Leisure Time Products 11.5%
- ---------------------------
33,500 Brunswick Corp. 833,312
40,100 Callaway Golf Co. 488,719
13,400 Harley Davidson 670,837
23,000 Hasbro Inc. 493,063
31,000 Mattel 589,000
16,000 Polaris Industries Inc. 554,000
- -------------------------------------------------------------
Total Leisure Time Products 3,628,931
Foods 3.3%
- ----------
71,000 Nabisco Group Holdings 1,065,000
- -------------------------------------------------------------
Total Foods 1,065,000
Restaurants 25.3%
- -----------------
198,100 Boston Chicken Inc.(a) $ 57,647
30,700 Brinker International Inc.(a) 832,738
22,143 CKE Restaurants Inc. 160,537
61,300 Darden Restaurants Inc. 1,199,181
38,600 McDonalds Corp. 1,659,800
36,900 Outback Steakhouse Inc.(a) 939,797
47,200 Starbucks Corp.(a) 1,169,675
24,600 Tricon Global Restaurants(a) 1,007,062
36,000 Wendy's International Inc. 949,500
- -------------------------------------------------------------
Total Restaurants 7,975,937
Gaming (Lottery & Parimutuel) 26.7%
- -----------------------------------
94,300 Harrah's Entertainment Inc.(a) 2,616,825
111,000 Int'l Game Technology 1,998,000
115,600 Mandalay Resort Group 2,283,100
108,000 Mirage Resorts Inc.(a) 1,518,751
- -------------------------------------------------------------
Total Gaming (Lottery & Parimutuel) 8,416,676
26
<PAGE>
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks - Continued
- -------------------------
Total Common Stocks
(Cost $31,635,718) 30,793,626
- -------------------------------------------------------------
Short Term Commercial Notes 2.5%
- -------------------------------------------------------------
$475,537 General Mills Demand Note
4.98% 3/3/00 475,537
- -------------------------------------------------------------
74,100 Warner Lambert Demand Note
5.02% 2/26/00 74,100
- -------------------------------------------------------------
227,905 American Family Demand Note
5.02% 3/21/00 227,905
- -------------------------------------------------------------
Total Short Term Commercial Notes
(Cost $777,542) 777,542
- -------------------------------------------------------------
Total Investments 100.0%
(Cost $32,413,260) 31,571,168
- -------------------------------------------------------------
Liabilities less other Assets (11,686)
- -------------------------------------------------------------
Net Assets 100.0% $ 31,559,482
The accompanying notes are an integral part of the financial statements.
(a) non-income producing security
27
<PAGE>
Technology
- ----------
Performance
- -----------
The ICON Technology Fund (the "Fund") opened on February 19, 1997. For the one
year ended September 30, 1999, the Fund appreciated 119.53%. The performance for
the S&P SuperComposite 1500 Index was 27.32% over that same period. Since its
inception, the Fund has returned 110.06%. Over that same period, the S&P
SuperComposite 1500 Index has returned 60.88%.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Technology Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, is up
approximately 30% from one year ago. At that time, in early October of 1998,
market pessimism was high. Many stocks had just experienced a correction of
approximately 20%, and investors were concerned. Reasons for investor pessimism
included the Asian crisis and excessive equity valuation. As is typically the
case when investors are fearful of a market drop, stocks were able to "climb the
wall of worry" and post excellent results over the next twelve months.
The gains in the market over the last twelve months have not been without
volatility and changes in leadership. In general, large cap stocks have
outperformed smaller and mid cap stocks in a volatile market environment. Market
leadership has fluctuated over short time periods. From start to finish over the
last year, the market has been led by large cap technology stocks, which have
appreciated substantially but have been subject to significant short term
declines.
The improving economies abroad and the continued strength in the U.S. economy
have strengthened the demand for the products of many technology companies. This
sector has outperformed the broad market significantly over the last twelve
months.
Industry Highlights
- -------------------
The Fund has seen considerable activity in the last twelve months. New industry
positions have been added, and old ones sold. Based on the Advisor's
quantitative system, which includes both valuation and price momentum, stocks in
the Computers (Networking) and Computers (Hardware) industries were sold during
the last year. New industries added to the Fund were Electronics (Component
Dist.) and Electronics (Instruments).
One of the largest industry holdings in the Fund is Communications Equipment.
Stocks in this industry include Lucent, Motorola, Nortel Networks, Qualcomm and
Scientific-Atlanta. These stocks have posted solid gains over the last twelve
months as telecommunication service providers have spent heavily to upgrade
their facilities.
Another large industry holding is Electronics (Semiconductors). Semiconductor
stocks held in the Fund include Intel, Texas Instruments, Micron Technology and
Linear Technology. Semiconductor companies have profited from the global
economic strength over the past 12 months. In addition, U.S. businesses and
retail consumers continue to spend heavily on computers and other devices that
use semiconductors.
Current Outlook
- ---------------
The Advisor sees many attractive industry opportunities within the Technology
sector. Technology-related industries can be subject to significant volatility
as investor enthusiasm waxes and wanes, but the long term outlook for companies
in the sector is positive. The Fund is currently positioned in four different
industries. It does not include many of the large cap stocks that dominate the
sector, such as Microsoft, Cisco, IBM and EMC. Instead, the Fund contains more
small and mid cap companies. The diversification of the current positioning
should help to mitigate wild price swings that are characteristic of
technology-related industries.
28
<PAGE>
Technology
- ----------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 94.5%
Top 10 Equity Holdings (% of Assets) 45.7%
Number of Stocks 28
Cash & Cash Equivalents 5.7%
- -----------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Arrow Electronics 6.2%
Avnet Inc. 6.0%
Grainger WW Inc. 5.6%
Qualcomm Inc. 4.7%
Nortel Networks Corp. 4.6%
Scientific-Atlanta Inc. 4.1%
Lucent Technologies 3.8%
ADC Telecommunications Inc. 3.6%
Tellabs Inc. 3.6%
Texas Instruments 3.5%
- -----------------------------------------------------------
Top Industries September 30, 1999
- -------------- ------------------
Electronics (Semiconductors) 32.2%
Communications Equipment 27.5%
Electronics (Component Dist.) 17.8%
Electronics (Instruments) 17.0%
- -----------------------------------------------------------
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Technology Fund are since the inception of the
Fund through the dates shown and for the one year period ended September
30, 1999. The returns are total returns, and include the reinvestment of
dividends and capital gains. Past performance does not guarantee future
results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted
index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and
the S&P 600. It is comprised of 1500 stocks. The S&P SuperComposite 1500
Index is an unmanaged index that includes the reinvestment of dividends and
does not reflect deductions for commission, management fees and expenses.
Individuals cannot invest in the index itself. Last year we used the Lipper
Science & Technology Funds Index. It has been changed to a more broad-based
index.
29
<PAGE>
Technology
- ----------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks 94.5%
- -------------------
Communications Equipment 27.5%
- ------------------------------
47,600 ADC Telecommunications
Inc.(a) $ 1,996,225
32,515 Lucent Technologies 2,109,411
19,900 Motorola Inc. 1,751,200
50,240 Nortel Networks Corp. 2,562,240
13,600 Qualcomm Inc.(a) 2,572,950
45,250 Scientific-Atlanta Inc. 2,242,703
34,400 Tellabs Inc.(a) 1,958,650
- ---------------------------------------------------------------
Total Communications Equipment 15,193,379
Electronics (Instruments) 17.0%
- -------------------------------
29,100 Alpha Industries Inc.(a) 1,641,422
37,300 Analogic Corp.(a) 1,177,281
65,100 Coherent Inc.(a) 1,452,544
35,700 EG&Ga 1,421,306
50,900 Methode Electronics Class A 960,738
19,800 PE Corp.-PE Biosystems
Group 1,430,550
38,600 Tektronix Inc. 1,293,100
- ---------------------------------------------------------------
Total Electronics (Instruments) 9,376,941
Electronics (Component Dist.) 17.8%
- -----------------------------------
195,200 Arrow Electronics Inc.(a) 3,440,400
78,100 Avnet Inc. 3,280,200
63,800 Grainger WW Inc. 3,066,388
- ---------------------------------------------------------------
Total Electronics (Component Dist.) 9,786,988
Electronics (Semiconductors) 32.2%
- ----------------------------------
44,400 Advanced Micro Devices(a) $ 763,125
43,300 Altera Corp.(a) 1,878,137
37,000 Analog Devices(a) 1,896,250
25,400 Intel Corp. 1,887,537
25,200 Linear Technology Corp. 1,481,288
32,800 LSI Logic Corp.(a) 1,689,200
26,100 Maxim Integrated Products(a) 1,646,747
26,500 Micron Technology Inc.(a) 1,763,906
31,400 National Semiconductor
Corp.(a) 957,700
23,400 Texas Instruments 1,924,650
28,200 Xilinx Inc.(a) 1,847,982
- ---------------------------------------------------------------
Total Electronic Semiconductors 17,736,522
30
<PAGE>
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- -------------------------- ------------
Common Stocks - Continued
- -------------------------
Total Common Stocks
(Cost $33,767,069) 52,093,830
- ---------------------------------------------------------------
Short-Term Commercial Notes 5.7%
- ---------------------------------------------------------------
$972,257 General Mills Demand Note
4.98% 3/3/00 972,257
- ---------------------------------------------------------------
625,024 Warner Lambert Demand Note
5.02% 2/26/00 625,024
- ---------------------------------------------------------------
1,125,444 Wisconsin Electric Demand Note
5.02% 4/4/00 1,125,444
- ---------------------------------------------------------------
406,015 Pitney Bowes Demand Note
4.98% 2/4/00 406,015
- ---------------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $3,128,740) 3,128,740
- ---------------------------------------------------------------
Total Investments 100.2%
(Cost $36,895,809) 55,222,570
- ---------------------------------------------------------------
Liabilities less other Assets (0.2%) (96,951)
- ---------------------------------------------------------------
Net Assets 100.0% $ 55,125,619
The accompanying notes are an integral part of the financial statements.
(a) non-income producing security
31
<PAGE>
Telecommunication and Utilities
- -------------------------------
Performance
- -----------
The ICON Telecommunication and Utilities Fund (the "Fund") opened on July 9,
1997. For the one year ended September 30, 1999, the Fund appreciated 15.25%.
The performance for the S&P SuperComposite 1500 Index was up 27.32% over that
same period. Since its inception, the Fund has returned 64.02%. Over that same
period, the S&P SuperComposite 1500 Index has returned 43.38%.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Telecommunication and Utilities Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, is up
approximately 30% from one year ago. At that time, in early October of 1998,
market pessimism was high. Many stocks had just experienced a correction of
approximately 20%, and investors were concerned. Reasons for investor pessimism
included the Asian crisis and excessive equity valuation. As is typically the
case when investors are fearful of a market drop, stocks were able to "climb the
wall of worry" and post excellent results over the next twelve months.
The gains in the market over the last twelve months have not been without
volatility and changes in leadership. In general, large cap stocks have
outperformed smaller and mid cap stocks in a volatile market environment. Market
leadership has fluctuated over short time periods. From start to finish over the
last year, the market has been led by large cap technology stocks, which have
appreciated substantially but have been subject to significant short term
declines.
This sector has been under-performing the general market in the past year
primarily due to rising interest rates. Stocks in electric utility and telephone
industries are interest rate sensitive. The rise in interest rates in the past
year has impacted these stocks negatively.
Industry Highlights
- -------------------
The Fund has seen limited activity in the last twelve months. Based on the
Advisor's quantitative system, which includes both valuation and price momentum,
stocks in the Cellular/Wireless Telecommunications industry were sold during the
last year. The Fund continues to hold the Telephone Services and Electric
Companies industries.
Some of the largest holdings in the Telephone Services industry include
Ameritech Corp, Bell Atlantic, BellSouth, GTE and Global Crossing. These stocks
have posted solid gains over the last twelve months as the companies posted
healthy earnings growth. Moreover, consolidation continues in the Telephone
Services industry and in related telecommunications industries, spurred in part
by the Telecommunication Act of 1996.
Another large industry holding is Electric Companies. The stocks held in the
Fund include American Electric Power, Carolina Power, Cinergy Corp, Consolidated
Edison, Dominion Resources, Duke Power, Edison International and Entergy Corp.
These stocks have been under pressure because of the rise in interest rates.
However, the healthy dividends that these companies pay out should help to
support stock prices in the future.
Current Outlook
- ---------------
The Advisor sees some attractive industry opportunities within the Fund.
Business and consumer spending on telecommunications services and products
should continue apace. The Electric Utility industry might remain under pressure
if interest rates continue to rise. However, utility stocks do also tend to act
as defensive investments in the market downturns as they provide a steady stream
of dividends.
32
<PAGE>
Telecommunication and Utilities
- -------------------------------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 98.2%
Top 10 Equity Holdings (% of Net Assets) 50.8%
Number of Stocks 26
Cash & Cash Equivalents 1.8%
- ----------------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Telephone & Data 6.5%
GTE Corp. 5.8%
Bell Atlantic 5.6%
Ameritech, Corp. 5.5%
US West Inc. 5.3%
Alltel Corp. 5.0%
BellSouth Corp. 4.9%
Global Crossing Ltd. 4.6%
SBC Communications Inc. 3.9%
Dominion Resources Inc. 3.7%
- ----------------------------------------------------------------
Top Industries September 30, 1999
- -------------- ------------------
Electric Companies 49.6%
Telephone Services 48.6%
- ----------------------------------------------------------------
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Telecommunication and Utilities Fund are since the
inception of the Fund through the dates shown and for the one year period
ended September 30, 1999. The returns are total returns, and include the
reinvestment of dividends and capital gains. Past performance does not
guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted
index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and
the S&P 600. It is comprised of 1500 stocks. The S&P SuperComposite 1500
Index is an unmanaged index that includes the reinvestment of dividends and
does not reflect deductions for commission, management fees and expenses.
Individuals cannot invest in the index itself. Last year we used the Lipper
Utilities Funds Index. It has been changed to a more broad-based index.
33
<PAGE>
Telecommunication and Utilities
- -------------------------------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- ------------------- -------------------
Common Stocks 98.2%
- -------------------
Telephone Services 48.6%
- ------------------------
5,062 Alltell Corp. $ 356,238
5,800 Ameritech Corp. 389,688
5,970 Bell Alantic 401,856
7,700 BellSouth Corp. 346,500
2,825 CenturyTel Inc. 114,766
12,300 Global Crossing, Ltd(a) 325,950
5,400 GTE Corp. 415,125
5,500 SBC Communications Inc. 280,844
5,200 Telephone & Data 461,825
6,600 U S West Inc. 376,613
- ---------------------------------------------------------------
Total Telephone Services 3,469,405
Electric Companies 49.6%
- ------------------------
5,600 American Electric Power
Co., Inc. 191,100
6,000 Carolina Power & Light 212,250
7,900 Cinergy Corp. 223,669
5,600 Consolidated Edison Inc. 232,400
5,900 Dominion Resources Inc. 266,237
4,600 Duke Power 253,575
9,700 Edison International 235,831
7,600 Entergy Corp. 219,925
4,600 FPL Group Inc. 231,725
8,100 Pacific Gas & Electric Corp. 209,587
12,300 Pacificorp 247,537
5,900 Peco Energy Co. 221,250
5,900 Public Service Enterprises 227,888
3,700 Reliant Energy Inc. 100,131
9,200 Southern Co. 236,900
6,100 Texas Utilities Co. 227,606
- ---------------------------------------------------------------
Total Electric Companies 3,537,611
Total Common Stocks 98.2%
(Cost $6,390,056) $ 7,007,016
- ---------------------------------------------------------------
Short-Term Commercial Notes 1.8%
- ---------------------------------------------------------------
$14,073 General Mills Demand Note
4.98% 3/3/00 $ 14,073
- ---------------------------------------------------------------
97,144 Wisconsin Electric Demand Note
5.02% 4/4/00 97,144
- ---------------------------------------------------------------
16,992 Warner Lambert Demand Note
5.02% 2/26/00 16,992
- ---------------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $128,209) 128,209
- ---------------------------------------------------------------
Total Investments 100.0%
(Cost $6,518,265) 7,135,225
- ---------------------------------------------------------------
Liabilities less other Assets (6,121)
- ---------------------------------------------------------------
Net Assets 100.0% $ 7,129,104
The accompanying notes are an integral part of the financial statements.
(a) non-income producing security.
34
<PAGE>
Transportation
- --------------
Performance
- -----------
The ICON Transportation Fund (the "Fund") opened on May 9, 1997. For the one
year ended September 30, 1999, the Fund appreciated 16.89%. The performance for
the S&P SuperComposite 1500 Index was 27.32% over that same period. Since its
inception, the Fund has returned 12.95%. Over that same period, the S&P
SuperComposite 1500 Index has returned 58.34%.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Transportation Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, is up
approximately 30% from one year ago. At that time, in early October of 1998,
market pessimism was high. Many stocks had just experienced a correction of
approximately 20%, and investors were concerned. Reasons for investor pessimism
included the Asian crisis and excessive equity valuation. As is typically the
case when investors are fearful of a market drop, stocks were able to "climb the
wall of worry" and post excellent results over the next twelve months.
The gains in the market over the last twelve months have not been without
volatility and changes in leadership. In general, large cap stocks have
outperformed smaller and mid cap stocks in a volatile market environment. Market
leadership has fluctuated over short time periods. From start to finish over the
last year, the market has been led by large cap technology stocks, which have
appreciated substantially but have been subject to significant short term
declines.
Transportation-related companies generally have not performed as well as the
broader market due to rising oil prices. The price per barrel of oil has more
than doubled during 1999. Higher oil costs translate into higher operating
expenses for truckers, airlines and air freight companies.
Industry Highlights
- -------------------
The Fund has seen limited activity in the last twelve months. Two new industry
positions were added, and no positions were sold. Based on the Advisor's
quantitative system, which includes both valuation and price momentum, stocks in
the Air Freight and Trucks & Parts industries were added to the Fund.
One of the largest industry holdings in the Fund is Truckers. Stocks in this
industry include Werner Enterprises, US Freightways, Landstar System Inc. and M
S Carriers. These stocks have posted modest gains over the last twelve months.
Strong demand for shipping has been offset somewhat by rising oil prices and a
tight labor market. Compared to the beginning of the decade, the trucking
industry is significantly more efficient and competitive. Even in the face of
difficult operating conditions, companies have continued to produce solid
results.
Another large industry holding is Railroads. Stocks held include Burlington
Northern, CSX, GATX, Union Pacific and Kansas City Southern. The wave of
consolidation within the industry appears to be coming to an end. Companies are
now focusing on streamlining operations and cutting costs. The well-publicized
bottlenecks of 1997 and 1998 are generally behind these firms.
Current Outlook
- ---------------
The Advisor sees many attractive industry opportunities within the
Transportation sector. Transportation companies, which are generally mid and
small cap firms, have not performed as well as the broader market for the past
few years. This performance gap has created a number of compelling
opportunities. The Fund is currently positioned in five different industries,
which should help to mitigate volatility.
35
<PAGE>
Transportation
- --------------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 97.2%
Top 10 Equity Holdings (% of Net Assets) 38.9%
Number of Stocks 32
Cash & Cash Equivalents 2.9%
- --------------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Cummins Engine 5.4%
Navistar International 4.8%
Paccar Inc. 4.7%
Expeditors Int'l of Wash. Inc. 3.8%
US Freightways Corp. 3.7%
FDX Corporation 3.4%
CNF Transportation Inc. 3.3%
Air Express 3.3%
CSX Corp. 3.3%
Airborne Freight Corp. 3.2%
- --------------------------------------------------------------
Top Industries September 30, 1999
- -------------- ------------------
Truckers 27.2%
Railroads 20.8%
Auto Parts & Equipment 13.7%
Air Freight 17.0%
Trucks & Parts 14.9%
- --------------------------------------------------------------
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Transportation Fund are since the inception of the
Fund through the dates shown and for the one year period ended September
30, 1999. The returns are total returns, and include the reinvestment of
dividends and capital gains. Past performance does not guarantee future
results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted
index of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and
the S&P 600. It is comprised of 1500 stocks. The S&P SuperComposite 1500
Index is an unmanaged index that includes the reinvestment of dividends and
does not reflect deductions for commission, management fees and expenses.
Individuals cannot invest in the index itself. Last year we used the S&P
Transportation Index. It has been changed to a more broad-based index.
36
<PAGE>
Transportation
- --------------
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- ------------------- -------------------
Common Stocks 97.2%
- -------------------
Auto Parts & Equipment 17.3%
- ----------------------------
22,800 Cooper Tire & Rubber Co. $ 401,850
16,018 Dana Corp. 594,668
21,500 Genuine Parts Co. 571,094
12,500 Goodyear Tire & Rubber 601,563
12,000 Modine Manufacturing Co. 279,750
16,800 Snap-On Tools Inc. 546,000
12,900 TRW Inc. 641,775
- -----------------------------------------------------------------
Total Auto Parts & Equipment 3,636,700
Truckers 27.2%
- --------------
36,800 American Freightways Corp.(a) 669,300
32,200 Arnold Industries Inc. 406,525
42,000 Hunt (J.B.) 582,750
19,400 Landstar System Inc.(a) 674,150
24,500 M S Carriers Inc.(a) 588,000
55,550 Rollins Truck Leasing 562,444
25,100 Ryder System 511,412
16,600 U.S. Freightways Corp. 786,425
31,975 Werner Enterprises Inc. 563,559
22,000 Yellow Corp.(a) 364,375
- -----------------------------------------------------------------
Total Truckers 5,708,940
Air Freight 17.0%
- -----------------
30,900 Air Express 701,044
31,900 Airborne Freight Corp. 671,894
18,700 CNF Transportation Inc. 696,575
24,800 Expeditors Int'l of Wash. Inc. 795,925
18,300 FDX Corporation(a) 709,125
- -----------------------------------------------------------------
Total Air Freight 3,574,563
Trucks & Parts 14.9%
- --------------------
22,700 Cummins Engine 1,130,744
21,700 Navistar International(a) 1,009,050
19,500 Paccar Inc. 992,062
- -----------------------------------------------------------------
Total Trucks & Parts 3,131,856
Railroads 20.8%
- ---------------
22,100 Burlington Northern
Santa Fe Corp. $ 607,750
16,500 CSX Corp. 699,188
21,200 GATX Corp. 658,525
12,700 Kansas City Southern Inds. 589,756
26,100 Norfolk Southern Corp. 639,450
13,200 Union Pacific Corp. 634,425
40,300 Wisconsin Central
Transportation(a) 551,606
- -----------------------------------------------------------------
Total Railroads 4,380,700
37
<PAGE>
Schedule of Investments September 30, 1999
------------------------------------------
Shares or Principal Amount Market Value
- ------------------- -------------------
Common Stocks - Continued
- -------------------------
Total Common Stocks
(Cost $21,585,609) 20,432,759
- -----------------------------------------------------------------
Short-Term Commercial Notes 2.9%
- -----------------------------------------------------------------
$12,923 Wisconsin Electric Demand Note
5.02% 4/4/00 $ 12,923
- -----------------------------------------------------------------
154,330 Warner Lambert Demand Note
5.02% 2/26/00 154,330
- -----------------------------------------------------------------
441,750 American Family Demand Note
5.02% 3/21/00 441,750
- -----------------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $609,003) 609,003
- -----------------------------------------------------------------
Total Investments 100.1%
(Cost $22,194,612) 21,041,762
- -----------------------------------------------------------------
Liabilities less other Assets (0.1%) (37,431)
- -----------------------------------------------------------------
Net Assets 100.0% $ 21,004,331
The accompanying notes are an integral part of the financial statements.
(a) non-income producing security
38
<PAGE>
Short-Term Fixed Income Fund
- ----------------------------
Performance
- -----------
The ICON Short-Term Fixed Income Fund (the "Fund") opened on February 7, 1997.
For the one year ended September 30, 1999, the Fund returned 3.54%. The
performance for the Fund's benchmark, the Merrill Lynch 1 Year Treasury Index,
was 4.26%. Since its inception, the Fund has returned 13.73%. The Merrill Lynch
1 Year Treasury Index has returned 15.16% over that same period.
The objective of the Fund is to attain high current income consistent with the
preservation of capital. Under normal conditions, the Fund invests in U.S.
Treasury and Agency obligations. Over the long-term, the Advisor aims to keep
the duration of the Fund toward the middle of the Fund's normal operating range
of .5 to 1.5 years. In the short-term, however, the Fund's duration can
fluctuate outside this operating range.
Fund Highlights
- ---------------
The Fund has seen limited activity in the last twelve months. The active
management of the Fund was taken over by the Advisor in February, 1999 from a
sub-advisor. There has been no change in strategy for the Fund.
This past year, worries over global financial instability that led to three
consecutive Federal Reserve interest rate cuts subsided. Instead, growing
concerns that a brisk U.S. economy could rekindle inflation emerged. On June 30,
1999 for the first time since March 1997, the Federal Reserve ("Fed") raised the
overnight bank lending rate from 4.75 to 5.00%. Citing tight labor markets, the
Fed made the move in a pre-emptive strike against the threat of inflation. In
late August, the Fed again raised the overnight bank lending rate a quarter
point to 5.25%. As the Fed has tightened its monetary policy, U.S. bond prices
have fallen, causing Treasury yields to rise.
Last fall, as the Fed eased monetary policy in response to economic woes in Asia
and Latin America that threatened worldwide financial instability, long-term
treasury yields reached a low of 4.71%. By June 1999, however, as foreign
economies continued to improve, the Fed became increasingly concerned about the
robust U.S. economy and shifted to a tightening monetary bias. Their two
consecutive interest rate hikes this past summer were a clear sign that Federal
Reserve policy-makers had become increasingly concerned about a renewed threat
of inflation. As the Fed shifted from an easing to a tightening monetary bias,
bond market participants lost their appetite for U.S. Treasuries and long-term
yields rose to a high of 6.27% in mid August 1999. Long-term yields ended the
Fund's fiscal year at just over 6.00%.
Current Outlook
- ---------------
Going forward, the Advisor expects the Fed's concern about inflation to provide
a positive environment for the U.S. bond market. While the labor market remains
tight and the threat of higher prices has received media attention, we have yet
to see any tangible evidence of inflation. It is important to point out,
however, that as the year comes to a close, gold prices have rallied furiously
from their lows. Because gold has historically served as a hedge against
inflation, investors should take this sharp rise as a cautionary signal. While
prices in general have remained subdued, the rally in the gold market could be a
harbinger that the Fed's preemptive strikes against inflation may be too little,
too late.
39
<PAGE>
Short-Term Fixed Income
- -----------------------
Schedule of Investments September 30, 1999
------------------------------------------
Principal Amount Market Value
- ---------------- ------------
U.S. Government Agencies 100.5%
- -------------------------------
$1,500,000 Freddie Mac
5.80% 11/4/99 $ 1,498,477
1,648,000 Fannie Mae
5.18% 10/1/99 1,648,000
2,000,000 Fannie Mae
5.44% 9/1/00 1,992,818
- ----------------------------------------------------------
Total U.S. Government Agencies 100.5%
(Cost $5,153,790) 5,139,295
- ----------------------------------------------------------
Liabilities less other Assets (0.5%) (28,316)
- ----------------------------------------------------------
Net Assets 100.0% $ 5,110,979
The accompanying notes are an integral part of the financial statements.
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Short-Term Fixed Income. Fund are since the
inception of the Fund through the dates shown and for the one year period
ended September 30, 1999. The returns are total returns, and include the
reinvestment of dividends and capital gains. Past performance does not
guarantee future results.
The Merrill Lynch 1 year U.S. Treasury Index captures the performance of
obligations of the U.S. Treasury that have one year to maturity, with
certain exceptions.
40
<PAGE>
Asia Region
- -----------
Performance
- -----------
The ICON Asia Region Fund (the "Fund") opened on February 25, 1997. For the one
year ended September 30, 1999, the Fund appreciated 78.49%. The performance for
the Morgan Stanley Capital International (MSCI) Pacific Index (in U.S. dollars),
was 68.73% over that same period. Since its inception, the Fund has returned
8.70%. Over that same period, the MSCI Pacific Index has returned 5.18%.
The MSCI Pacific Index is a market cap index of countries in the Pacific Region.
Asian markets have rebounded strongly from their lows last fall. At that time,
in early October of 1998, market pessimism was high. The economies and
currencies of developing countries around the world had been under pressure
since 1997 when Thailand devalued the Baht. In October of 1998, Russia defaulted
on government-backed bonds. Markets around the world fell as investors were
reminded of the risks inherent in international investing. As is typically the
case when investors are fearful of a market drop, stocks were able to "climb the
wall of worry" and post excellent results over the next twelve months.
The gains in Asian stock markets over the last twelve months have not been
without volatility. In general, however, stocks across the region have risen
with the growing sentiment that Asian economies will recover sooner than
originally anticipated. Subject to sharp declines at times, the market has
bounced back and posted excellent twelve-month returns.
In the past several years, investors have started to wonder about the benefits
of diversifying their portfolios beyond the U.S. border. The healthy returns
posted in Asia in 1999 have been a timely reminder that foreign markets can
improve the return and risk characteristics of a portfolio for a U.S. investor.
Country Highlights
- ------------------
The Fund has seen limited activity in the last twelve months. No new country
positions have been added and two small positions were sold. Based on the
Advisor's quantitative system, which includes both valuation and price momentum,
stocks in Singapore and Malaysia were sold during the last year.
The largest country holding in the Fund is Japan. Stocks held include Nippon
Telephone & Telegraph, Toyota, Honda, Mitsubishi and Fuji Bank. Investor
sentiment toward Japan has improved markedly. Japanese stocks have posted solid
gains over the last twelve months as Japanese consumers have started to spend
more money and as the government has begun to allow more competition across a
range of industries.
The other country holding is Hong Kong. Hong Kong stocks faced severe pressure
last fall. Not only were investors concerned about Asian economies in general,
they also worried that China might abandon the currency's peg to the dollar and
perhaps reduce the freedom of Hong Kong's markets. In fact, China has remained
remarkably steady throughout the crisis period, which resulted in strong stock
performance for the Hong Kong market. Hong Kong is one of the more attractive
country markets.
Current Outlook
- ---------------
The Advisor sees many country opportunities within the Asia region. The Asian
governments have only just begun the arduous process of deregulating local
markets - in particular the financial sector; however, several countries have
made a concerted effort to allow freer markets so that the region's capital is
more effectively employed. The Advisor maintains a positive long-term outlook
for Asia.
41
<PAGE>
Asia Region
- -----------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 89.3%
Top 10 Equity Holdings (% of Assets) 49.0%
Number of Stocks 60
Cash & Cash Equivalents 11.7%
- -------------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Nippon Telephone & Telegraph Corp. 11.4%
Toyota Motor Corporation 9.2%
Bank of Tokyo-Mitsubishi Ltd. 4.5%
Sony Corporation 4.5%
Fujitsu Ltd. 4.3%
Takeda Chemical 3.5%
Matsushita Electric Industrial Co., Ltd. 3.5%
Honda Motor Company 3.0%
Sumitomo Bank, Ltd. 2.7%
Fuji Bank Ltd. 2.4%
- -------------------------------------------------------------
Top Countries September 30, 1999
- ------------- ------------------
Japan 82.2%
Hong Kong 7.1%
- -------------------------------------------------------------
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON Asia Region Fund are since the inception of the
Fund through the dates shown and for the one year ended September 30, 1999.
The returns are total returns, and include the reinvestment of dividends
and capital gains. International investing involves greater risk than U.S.
investments due to political, economic uncertainties and the risk of
currency fluctuations. Past performance does not guarantee future results.
The Morgan Stanley Capital International (MSCI) Pacific Index is comprised
of stocks traded in the developed markets of the Pacific Basin (Australia,
Hong Kong, Japan, Malaysia, New Zealand, and Singapore). The index tries to
capture at least 60% of investable capitalization in said markets subject
to constraints governed by industry representation, maximum liquidity,
maximum float, and minimum cross-ownership (companies with exposure in
multiple countries). The index is capitalization weighted. The MSCI Pacific
Index is an unmanaged index that does not include the reinvestment of
dividends and does not reflect deductions for commission, management fees
and expenses. Individuals cannot invest in the index itself.
42
<PAGE>
Asia Region
- -----------
Schedule of Investments September 30, 1999
------------------------------------------
Shares Market Value
- ------ ------------
Common Stocks 89.3%
- -------------------
Hong Kong 7.1%
- --------------
27,400 Bank of East Asia $ 58,907
37,000 Cathay Pacific Airways 66,686
34,000 Cheung Kong Holdings 283,414
4,000 Cheung Kong Infrastructure 7,904
22,000 China Light & Power
Holdings 103,375
40,000 Chinese Estates HL(a) 6,540
4,000 Citic Pacific Ltd. 11,071
6,500 Dickson Concepts Intl. 5,063
3,000 Guoco Group Ltd. 7,879
30,000 Hang Lung Dev. Co. 33,986
29,100 Hang Seng Bank 308,128
29,000 Hong Kong & Shanghai
Hotels 22,027
131,200 Cable & Wireless HKt Ltd. 286,290
70,070 Hong Kong & China Gas 94,265
17,600 Hopewell Holdings 12,348
54,000 Hutchison Whampoa Ltd. 500,528
23,000 Hysan Development Ord. 28,721
11,000 Miramar Hotel 11,470
13,000 New World Development 28,451
27,000 Shangri La Asis Ltd. 29,893
74,000 Shun Tak Holdings 14,576
40,434 Sun Hung Kai Properties 308,416
40,500 Swire Pacific Ltd. 29,719
6,000 Television Broadcast 25,644
40,000 Wharf Holdings 115,605
- -----------------------------------------------------------
Total Hong Kong 2,400,906
Japan 82.2%
- -----------
98,000 Bank of Tokyo-Mitsubishi Ltd. $ 1,504,932
17,000 Bridgestone Corp. 475,815
17,000 Canon Inc. 494,976
17,000 Denso Corporation 360,055
77 East Japan Railway 490,336
67,000 Fuji Bank Ltd. 814,296
10,000 Fuji Photo Film 342,820
46,000 Fujitsu Ltd. 1,434,396
65,000 Hitachi 720,391
24,000 Honda Motor Company 1,005,355
52,000 Industrial Bank of Japan Ltd. 639,317
8,000 Ito-Yokado Co. Ltd. 661,220
13,000 KAO Corp. 367,522
18,800 Kansai Electric Power 363,746
5,000 Murata Mfg. Co. 502,489
55,000 Matsushita Electric
Industrial Co., Ltd. 1,170,049
28,000 Mitsubishi Estate Co. Ltd. 284,287
66,000 Mitsubishi Hvy Indys 254,156
32,000 NEC Corporation 644,689
133,000 Nippon Steel Company 361,013
312 Nippon Telephone
& Telegraph Corp. 3,838,831
51,000 Nissan Motor Company 308,961
38,000 Nomura Securities Co. 588,899
2,000 Rohm Company 417,959
79,000 Sakura Bank Ltd. 593,595
22,000 Sharp Corporation 352,513
8,000 Shin-Etsu Chemical Co. 333,615
10,000 Sony Corporation 1,494,319
61,000 Sumitomo Bank, Ltd. 916,691
22,000 Takeda Chemical 1,188,129
49,000 Tokai Bank 353,912
30,000 Tokio Marine & Fire
Insurance 355,030
26,500 Tokyo Electric Power 612,286
97,000 Toyota Motor Corporation 3,088,478
6,000 Yamanouchi Pharmaceutical 281,206
- -----------------------------------------------------------
Total Japan 27,616,284
(continued)
The accompanying notes are an integral part of the financial statements.
43
<PAGE>
Asia Region (continued)
- -----------------------
Shares Market Value
- ------ ------------
Common Stocks - continued
- -------------------------
Total Common Stocks
(Cost $23,295,303) $ 30,017,190
- -----------------------------------------------------------
Total Demand Deposits 11.7%
3.70% Chase Bank Interest
Bearing Demand Deposit
(Cost $3,913,258) 3,913,258
- -----------------------------------------------------------
Total Investments 101.0%
(Cost $27,208,561) 33,930,448
- -----------------------------------------------------------
Liabilities less other Assets (1.0%) (366,702)
- -----------------------------------------------------------
Net Assets 100.0% $ 33,563,746
The accompanying notes are an integral part of the financial statements.
(a) non-income producing security.
44
<PAGE>
Asia Region (continued)
- -----------------------
Schedule of Investments September 30, 1999
- ------------------------------------------
Summary of Investments by Industry
- ----------------------------------
% of Investments
----------------
Airlines 0.22%
Automobiles 14.65%
Banks 17.34%
Chemicals 3.47%
Computers 6.94%
Construction 0.11%
Electronic Components 10.18%
Electronic Materials 8.28%
Financial Services 2.01%
Hotel/Tourist 0.22%
Industrial Equipment 0.89%
Insurance 1.23%
Multi-Industry 2.13%
Pharmacy 4.81%
Real Estate 3.02%
Special Retail 2.24%
Steel Metal 1.23%
Telecommunications 13.76%
Tires & Rubber 1.57%
Transportation 1.68%
TV, Radio 0.11%
Water Distribution 3.91%
- ------------------------------------------
Total 100.00%
The accompanying notes are an integral part of the financial statements.
45
<PAGE>
North Europe Region
- -------------------
Performance
- -----------
The ICON North Europe Region Fund (the "Fund") opened on February 18, 1997. For
the one year ended September 30, 1999, the Fund appreciated 12.78%. The
performance for the Morgan Stanley Capital International (MSCI) Europe 15 Index
(in U.S. dollars), was 15.38% over that same period. Since its inception, the
Fund has returned 33.46%. Over that same period, the MSCI Europe 15 Index has
returned 48.25%.
The MSCI Europe 15 Index is a market cap index of countries in the European
Region.
European markets have shown mixed results during the past twelve months. Markets
throughout the world were roiled last fall. The economies and currencies of
developing countries around the world had been under pressure since 1997 when
Thailand devalued the Baht. In October of 1998, Russia defaulted on
government-backed bonds. Markets around the world fell as investors were
reminded of the risks inherent in international investing. As is typically the
case when investors are fearful of a market drop, many stock markets were able
to "climb the wall of worry" and post excellent results over the next twelve
months.
Generally, the best returns in 1999 have been posted by countries outside of the
Euro Currency zone. Scandinavian countries such as Norway and Sweden, which have
a large weighting in technology and commodity industries, have generated
double-digit returns. Conversely, countries within the Euro Currency zone such
as Germany, Italy, and Belgium, have posted negative returns. In part, these
countries have been hurt by the European Central Bank's determination to prove
that it will fight inflation, even in the face of some sluggishness in Euro
Currency zone economies.
In the past several years, investors have started to wonder about the benefits
of diversifying their portfolios beyond the U.S. border. European markets have
not been uniformly positive, but the healthy returns posted in 1999 in Norway
and Sweden, for example, have been a timely reminder that foreign markets can
improve the return and risk characteristics of a portfolio for a U.S. investor.
Country Highlights
- ------------------
The Fund has seen several changes in the last twelve months. New country
positions have been added and some positions were sold. Based on the Advisor's
quantitative system, which includes both valuation and price momentum, stocks in
Germany and Belgium were sold during the last year, and stocks in Norway were
added.
The largest country holding in the Fund is Sweden. Stocks held include Ericsson,
ABB, Hennes & Mauritz, Trelleborg and Skandia Forsakrings. Ericsson, in
particular, has generated strong returns for investors as the company's
telecommunications products have sold well throughout the world. Other companies
as well have proven themselves to be formidable global competitors.
The second largest country holding is Norway. Stocks held include Norsk Hydro,
Christiania Bank, Den Norske Bank and Orkla. The finance industry has benefited
from a wave of consolidation throughout the Nordic countries as suitors pay a
premium to acquire Norwegian banks. Also, the natural resources and
commodity-related industries have benefited from recovering economies worldwide.
Current Outlook
- ---------------
The Advisor sees several attractive country opportunities within the North
Europe region. Companies within the Scandinavian countries continue to show
strong fundamentals. Countries within the Euro Currency zone are beginning to
show stronger GDP growth. The healthier economies should begin to translate into
better country stock market performance in time.
46
<PAGE>
North Europe Region
- -------------------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 95.9%
Top 10 Equity Holdings (% of Assets) 43.8%
Number Stocks 95
Cash & Cash Equivalents 11.8%
- ----------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Ericsson LM-B Shares 9.3%
Norsk Hydro ASA 8.7%
TeleDanmark 4.3%
D/S Svenborg 3.5%
Astrazenca PLC 3.2%
D/S 1912B 3.2%
ABB LTD SEK 3.1%
Hennes & Mauritz AB B SHS 3.0%
Novo Nordisk A/S 2.9%
Christiania Bank 2.6%
- ----------------------------------------------------------
Top Countries September 30, 1999
- ------------- ------------------
Sweden 32.6%
Norway 28.3%
Denmark 19.0%
United Kingdom 16.0%
- ----------------------------------------------------------
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON North Europe Region Fund are since the inception
of the Fund through the dates shown and for the one year ended September
30, 1999. The returns are total returns, and include the reinvestment of
dividends and capital gains. International investing involves greater risk
than U.S. investments due to political, economic uncertainties and the risk
of currency fluctuations. Past performance does not guarantee future
results.
The Morgan Stanley Capital International (MSCI) Europe 15 Index is
comprised of stocks traded in the developed markets of Europe. The index
tries to capture at least 60% of investable capitalization in said markets
subject to constraints governed by industry representation, maximum
liquidity, maximum float, and minimum cross-ownership (companies with
exposure in multiple countries). The index is capitalization weighted. The
MSCI Europe 15 Index is an unmanaged index that does not include the
reinvestment of divdends and does not reflect deductions for commission,
management fees and expenses. Individuals cannot invest in the index
itself.
47
<PAGE>
North Europe Region
- -------------------
Schedule of Investments September 30, 1999
------------------------------------------
Shares Market Value
- ------ ------------
Common Stocks and Rights 95.9%
- ------------------------------
Denmark 19.0%
- -------------
1,020 Bang & Olufsen Holdings $ 59,912
4,847 Carlsberg 177,070
75 D/S 1912 B 771,468
60 D/S Svenborg 833,787
4,394 Danisco A/S 183,813
4,013 Den Danske Bank Group 457,055
4,087 FLS Industries 108,320
2,311 ISS International Service
Systema 129,452
5,891 Novo Nordisk A/S 700,486
2,568 Radiometer 110,369
17,230 Tele Danmark 1,026,859
- ------------------------------------------------------
Total Denmark 4,558,591
Norway 28.3%
- ------------
11,681 Aker RGI ASA 165,741
11,069 Bergensen A SHS 179,902
115,270 Christiania Bank 618,540
134,883 Den Norske Bank 532,399
5,463 Dyno ASA 119,795
10,756 Eklem ASA 194,239
13,954 Hafslunda ASA A SHS 89,996
7,345 Kvaerner ASA A 146,853
6,353 Leif Hoegh & Co. ASA 72,114
21,236 Merkantildata ASA 217,770
21,236 Merkantildata Rights 328
48,947 NCL Holdings ASA 142,058
49,521 Norsk Hydro ASA 2,095,181
6,182 Norske Skogindustrier ASA-A 247,998
33,712 Orkla ASA-A SHS 510,953
8,435 Orkla ASA-B SHS 111,524
20,587 Petroleum Geo Services ASA 386,380
9,829 SAS Norge ASA B SHS 95,723
14,330 Schibsted ASA 141,405
56,623 Storebrand ASA 423,623
7,951 Torma Systems 299,477
- ------------------------------------------------------
Total Norway 6,791,999
(continued)
48
<PAGE>
Shares Market Value
- ------ ------------
Common Stocks and Rights - continued
- ------------------------------------
Sweden 32.6%
- ------------
7,212 ABB Ltd SEK $ 739,850
2,700 AGA AB Series A Shares 46,109
3,500 AGA AB Series B Shares 59,771
18,312 Astrazenca PLC 762,814
6,000 Atlas COPCO ABA SHS Rights 7,245
6,000 Atlas COPCO AS Series A
Shares 168,334
2,000 Atlas COPKO AB SER B
Shares 55,379
1,289 Boliden Ltd. SS 3,411
2,300 Diligentia AB 17,254
2,800 Drott AB SER B 25,958
11,700 Electrolux AB SER B
SWKR 5 218,358
1,600 Esselte AB SER A SHS 13,467
1,600 Esselte AB SER B SHS 13,272
71,700 Ericsson LM-B Shares 2,221,493
17,500 Foreningssparbanken 283,911
1,100 Granges AB 21,536
28,600 Hennes & Mauritz AB B SHS 720,407
3,200 Meto AG SS 24,981
3,200 Netcom AB-Bsh 118,663
2,100 OM Gruppen AB 23,567
6,000 Sandvik A 162,845
10,700 Securitas AB SWKR2 SER B 160,539
17,000 Skandia Forsakrings AB 354,599
19,700 Skandinaviska Enskilda Bank A 200,653
3,800 Skanska AB Series B Shares 141,376
2,800 SKF AB Series A Shares 59,429
3,000 SKF AB Series B Shares 67,334
6,400 Svenska Cellulosa Rights 0
1,800 SSAB Svenskt Stal AB
SER A 23,164
1,100 SSAB Svenskt Stal AB
SER B 14,022
6,400 Svenska Cellulosa AB
SER B S 170,578
21,100 Svenska Handelsbanken-A
SHS 294,700
22,200 Swedish Match AB 82,323
3,300 Trelleborg AB SER B
SWKR25 31,398
7,600 Volvo AB-B 214,613
4,500 Volva SS 126,799
3,500 WM-Data AB-B 151,561
- ------------------------------------------------------
Total Sweden 7,801,713
49
<PAGE>
Shares Market Value
- ------ ------------
Common Stocks and Rights - continued
- ------------------------------------
United Kingdom 16.0%
- --------------------
8,349 Allied Zurich PLC $ 98,038
3,442 Astrazeneca PLC 144,380
5,392 Barclays PLC 158,332
16,984 BG PLC 97,618
7,467 Boots Co. PLC 83,192
29,095 BP AMOCO PLC 531,396
13,094 British Aerospace PLC 86,312
16,349 British American Tobacco PLC 140,280
9,989 British Sky Broadcasting PLC 96,649
23,980 British Telecommunications PLC 363,136
8,345 Cable Wireless PLC 90,844
13,200 Cadbury Schweppes PLC 91,685
6,947 CGU PLC 107,260
13,586 Diageo PLC 138,836
13,518 Glaxo Wellcome PLC 352,644
10,164 Granada Group PLC Ord 87,043
5,930 Great Universal Stores PLC 44,729
20,168 Lloyds TSB Group PLC 250,771
11,127 Marks & Spencer PLC 57,816
8,343 Prudential Corp. PLC 128,195
5,806 Rio Tinto PLC 100,687
6,737 Rueters Group PLC 76,058
7,795 Sainsbury (J) PLC 48,656
20,995 Smithkline Beecham PLC 241,519
35,428 Tesco PLC 110,712
11,167 Unilever PLC 105,103
- ------------------------------------------------------------
Total United Kingdom 3,831,891
Total Common Stocks and Rights
(Cost $21,401,161) 22,984,194
- ------------------------------------------------------------
Demand Deposit 11.8%
3.60% Chase Bank Interest
Bearing Demand Deposit
(Cost $2,825,882) 2,825,882
- ------------------------------------------------------------
Total Investments 107.7%
(Cost $24,227,043) 25,810,076
- ------------------------------------------------------------
Liabilities less other Assets (7.7%) (1,838,740)
- ------------------------------------------------------------
Net Assets 100.0% $ 23,971,336
The accompanying notes are an integral part of the financial statements.
50
<PAGE>
North Europe Region (continued)
- -------------------------------
Schedule of Investments September 30, 1999
- ------------------------------------------
Summary of Investments by Industry
- ----------------------------------
% of Investments
----------------
Airlines 0.42%
Alcoholic Beverage 0.63%
Automobile 1.47%
Bank 12.16%
Breweries 0.73%
Chemicals 0.63%
Computer Services 0.94%
Construction 0.63%
Defense 0.42%
Department Stores 0.21%
Electric Materials 0.21%
Financial Services 0.31%
Food 1.26%
Food Retail 0.73%
Holding 6.60%
House Equipment 0.94%
Industrial Equipment 2.83%
Industrial Gas 0.42%
Industrial Services 0.84%
Insurance 4.82%
Leisure 0.42%
Medical Equipment 0.52%
Mining 0.42%
Multi-Industry 12.37%
Non Alcoholic Beverage 0.42%
Office Equipment 0.21%
Oil Integrated 2.31%
Oil Service 3.04%
Press Printing 0.63%
Pharmacy 6.29%
Pulp and Paper 1.78%
Real Estate 0.21%
Sea Transportation 8.70%
Services 1.15%
Specialty Retailers 0.52%
Steel-Metal 1.78%
Telecommunications 16.67%
Textiles 3.14%
Tobacco 0.94%
TV and Radio 0.42%
Water Distributors 0.86%
- ------------------------------------------
Total 100.00%
The accompanying notes are an integral part of the financial statements.
51
<PAGE>
South Europe Region
- -------------------
Performance
- -----------
The ICON South Europe Region Fund (the "Fund") opened on February 20, 1997. For
the one year ended September 30, 1999, the Fund appreciated 6.41%. The
performance for the Morgan Stanley Capital International (MSCI) Europe 15 Index
(in U.S. dollars), was 15.38% over that same period. Since its inception, the
Fund has returned 34.37%. Over that same period, the MSCI Europe 15 Index has
returned 48.23%.
The MSCI Europe 15 Index is a market cap index of countries in the European
Region.
European markets have shown mixed results during the past twelve months. Markets
throughout the world were roiled last fall. The economies and currencies of
developing countries around the world had been under pressure since 1997 when
Thailand devalued the Baht. In October of 1998, Russia defaulted on
government-backed bonds. Markets around the world fell as investors were
reminded of the risks inherent in international investing. As is typically the
case when investors are fearful of a market drop, many stock markets were able
to "climb the wall of worry" and post excellent results over the next twelve
months.
Generally, the best returns in 1999 have been posted by countries outside of the
Euro Currency zone. Scandinavian countries such as Norway and Sweden, which have
a large weighting in technology and commodity industries, have generated
double-digit returns. Conversely, countries within the Euro Currency zone such
as Germany, Italy, and Belgium, have posted negative returns. In part, these
countries have been hurt by the European Central Bank's determination to prove
that it will fight inflation, even in the face of some sluggishness in Euro
Currency zone economies.
In the past several years, investors have started to wonder about the benefits
of diversifying their portfolios beyond the U.S. border. European markets have
not been uniformly positive, but the healthy returns posted in 1999 in Norway
and Sweden, for example, have been a timely reminder that foreign markets can
improve the return and risk characteristics of a portfolio for a U.S. investor.
Country Highlights
- ------------------
The Fund has seen few changes in the last twelve months. No new country
positions have been added, and one position was sold. Based on the Advisor's
quantitative system, which includes both valuation and price momentum, stocks in
Austria were sold during the last year.
The two country holdings in the Fund are Italy and Switzerland. Italian stocks
held include Telecom Italia, Ente Nazionale Idrocarburi, Assicurazioni Generali
and Unicredito Italiano. After performing extremely well in 1998, Italian stocks
have suffered in 1999. The economy has slowed, but the Italian economy has not
received any help from a looser monetary policy as the European Central Bank has
to consider the strength of economies throughout the zone. The Bank must also
establish its inflation fighting credentials.
Swiss stocks held include Novartis, Roche, Nestle, Union Bank of Switzerland,
Credit Suisse and Zurich Allied. The Swiss market is heavily concentrated in
Pharmaceuticals, Food, and Banking. All three of these industries have
experienced weakness in 1999, both in Switzerland and globally.
Current Outlook
- ---------------
The Advisor sees several country opportunities within the South Europe region.
Companies within these countries are restructuring and cutting costs as they
seek to compete both within the Euro Currency zone and globally. The stronger
companies that result should begin to translate into better country stock market
performance.
52
<PAGE>
South Europe Region
- -------------------
Portfolio Profile September 30, 1999
- ----------------- ------------------
Equities 91.5%
Top 10 Equity Holdings (% of Assets) 62.9%
Number of Stocks 36
Cash & Cash Equivalents 12.0%
- --------------------------------------------------------------
Top 10 Equity Holdings September 30, 1999
- ---------------------- ------------------
Roche Holdings AG 9.6%
Novartis 8.2%
Nestle SA 8.0%
Ente Nazionale Idrocarburi 7.1%
Union Bank of Switzerland AG 6.7%
TIM SPA 5.4%
Credit Suisse Group 5.3%
Assicurazioni Generali 4.8%
Telecom Italia SPA 4.4%
Uncredito Italiano SPA 3.4%
- --------------------------------------------------------------
Top Countries September 30, 1999
- ------------- ------------------
Switzerland 46.7%
Italy 44.8%
- --------------------------------------------------------------
Performance Overview *
----------------------
[GRAPHIC OMITTED]
* Investment return and principal value represent past performance and are
not a guarantee of future results. Shares may be worth more or less at
redemption than at original purchase.
The returns for the ICON South Europe Fund are since the inception of the
Fund through the dates shown and for the one year ended September 30, 1999.
The returns are total returns, and include the reinvestment of dividends
and capital gains. International investing involves greater risk than U.S.
investments due to political, economic uncertainties and the risk of
currency fluctuations. Past performance does not guarantee future results.
The Morgan Stanley Capital International (MSCI) Europe 15 Index is
comprised of stocks traded in the developed markets of Europe. The index
tries to capture at least 60% of investable capitalization in said markets
subject to constraints governed by industry representation, maximum
liquidity, maximum float, and minimum cross-ownership (companies with
exposure in multiple countries). The index is capitalization weighted. The
MSCI Europe 15 Index is an unmanaged index that does not assume the
reinvestment of dividends and does not reflect deductions for commission,
management fees and expenses. Individuals cannot invest in the index
itself.
53
<PAGE>
South Europe Region (continued)
- -------------------------------
Schedule of Investments September 30, 1999
------------------------------------------
Shares Market Value
- ------ ------------
Common Stocks 91.5%
- -------------------
Italy 44.8%
- -----------
7,686 Assicurazioni Generali $ 255,409
12,876 Banca Commerciale Italiana 88,866
17,727 Banca Intesa SPA 74,200
4,004 Banco Popolare Di Milano 29,298
20,980 Bennetton Group SPA 45,696
5,027 Edison SPA 44,225
59,789 Ente Nazionale Idrocarburi 375,074
2,948 Fiat SPA 98,277
5,978 Italgas (SOC Ital) 25,850
32,169 INA - Institut Naz Assicur. 104,843
8,707 Mediaset SPA 88,934
4,583 Mediobanca 50,716
27,718 Montedison SPA 58,240
24,191 Parmalat Finanziaria SPA 32,464
14,664 Pirelli SPA 35,688
2,844 Rinascente LA SPA 21,355
4,000 Riunione Adriatica Di
Sicurta 39,962
10,736 San Paolo IMI 139,503
12,815 Telecom Italia Mobile Di Ris 47,225
45,667 TIM SPA 284,051
26,615 Telecom Italia SPA 231,312
36,539 Uncredito Italiano SPA 178,628
48,369 Unione Immobiliare 25,707
- ---------------------------------------------------------------
Total Italy 2,375,523
Switzerland 46.7%
- -----------------
118 Adecco SA $ 65,975
40 Alusuisse-Lonza 46,062
1,545 Credit Suisse Group 283,137
40 Holderbank Financiere
Glarus 51,953
225 Nestle SA 422,831
294 Novartis 436,121
44 Roche Holdings AG 509,170
155 Sairgroup 33,518
23 Schw Ruckversicherungs AG 45,905
291 SMH AG Neuenburg 47,511
23 Sulzer Gebuder AG 14,530
1,265 Union Bank of Switzerland AG 356,587
295 Zurich Allied AG 164,544
- ---------------------------------------------------------------
Total Switzerland 2,477,844
Total Common Stocks
(Cost $5,240,901) 4,853,367
- ---------------------------------------------------------------
Demand Deposit 12.0%
3.20% Chase Bank Interest
Bearing Demand Deposit
(Cost $637,163) 637,163
- ---------------------------------------------------------------
Total Investments 103.5%
(Cost $5,878,064) 5,490,530
- ---------------------------------------------------------------
Liabilities less other Assets (3.5%) (192,630)
- ---------------------------------------------------------------
Net Assets 100% $ 5,297,900
The accompanying notes are an integral part of the financial statements.
54
<PAGE>
South Europe Region (continued)
- -------------------------------
Schedule of Investments September 30, 1999
- ------------------------------------------
Summary of Investments by Industry
- ----------------------------------
% of Investments
----------------
Airlines 0.64%
Automobile 1.92%
Bank 26.76%
Cement 1.07%
Chemicals 1.17%
Consumer Goods 0.96%
Department Stores 0.43%
Food 9.06%
Industrial Equipment 0.32%
Insurance 12.37%
Non Ferrous Metals 0.96%
Oil Integrated 7.46%
Pharmacy 18.98%
Real Estate 0.53%
Telecommunications 11.19%
Temporary Work 1.28%
Textiles 0.96%
Tires/Rubber 0.75%
TV and Radio 1.81%
Water Distributors 1.38%
- ------------------------------------------
Total 100.00%
The accompanying notes are an integral part of the financial statements.
55
<PAGE>
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
------------------------------------
September 30, 1999
ICON Basic ICON Consumer ICON Energy ICON Financial ICON Healthcare
Materials Fund Cyclicals Fund Fund Services Fund Fund
- ----------------------------------------------------------------------------------------------------------------------------
Assets
- ------
<S> <C> <C> <C> <C> <C>
Investments at cost $26,118,703 $54,988,924 $20,661,685 $ 6,248,334 $27,293,903
---------------------------------------------------------------------------------
Investments at value 26,392,829 54,428,852 19,239,050 5,489,461 24,584,525
Cash -- -- -- -- --
Receivables:
Fund shares sold 4,696 11,947 15,587 1,409 5,637
Interest 1,378 5,994 2,406 1,134 4,450
Dividends 18,762 26,527 17,944 8,920 9,935
Deferred organizational expenses 10,232 10,232 -- 10,232 9,374
---------------------------------------------------------------------------------
Total Assets 26,427,897 54,483,552 19,274,987 5,511,156 24,613,921
Liabilities:
Payables:
Due to Custodian bank -- -- -- -- --
Fund shares redeemed -- 17,948 2,937 -- 7,518
Advisory fee 22,604 44,621 17,061 4,713 21,944
Fund accounting, custodial and
transfer agent fees 6,248 12,775 4,976 1,324 6,182
Administration fee 1,092 2,231 853 236 1,097
Distributions due to shareholders -- -- -- -- --
Due to redeemed shareholders -- -- -- -- --
Accrued Expenses 24,654 54,761 19,475 21,663 27,571
---------------------------------------------------------------------------------
Total Liabilities 54,598 132,336 45,302 27,936 64,312
Net Assets $26,373,299 $54,351,216 $19,229,685 $ 5,483,220 $24,549,609
Shares Outstanding (unlimited
shares authorized, no par value) 3,606,190 5,618,130 2,409,714 610,126 3,076,654
Net Asset Value (Offering price
and redemption price per share) $ 7.31 $ 9.67 $ 7.98 $ 8.99 $ 7.98
The accompanying notes are an integral part of the financial statements
56
<PAGE>
Statements of Assets and Liabilities (Continued)
-----------------------------------------------
September 30, 1999
ICON Leisure ICON Technology ICON Telecomm & ICON Transpor- ICON Short-Term
Fund Fund Utilities Fund tation Fund Fixed Income Fund
--------------------------------------------------------------------------------
Assets
- ------
Investments at cost $ 32,413,260 $36,895,809 $ 6,518,265 $22,194,612 $ 5,153,790
--------------------------------------------------------------------------------
Investments at value 31,571,168 55,222,570 7,135,225 21,041,762 5,139,295
Cash -- -- -- -- 1,063
Receivables:
Fund shares sold 5,639 12,252 1,409 5,168 304
Interest 3,517 17,595 474 2,527 44,467
Dividends 57,663 15,786 13,202 13,231 --
Deferred organizational expenses 10,232 9,374 10,232 10,232 9,374
--------------------------------------------------------------------------------
Total Assets 31,648,219 55,277,577 7,160,542 21,072,920 5,194,503
Liabilities:
Payables:
Due to Custodian bank -- 7,203 -- -- --
Fund shares redeemed 15,953 28,207 -- 9,672 297
Advisory fee 26,331 47,939 5,795 18,824 2,601
Fund accounting, custodial and
transfer agent fees 7,510 13,244 1,790 5,211 1,611
Administration fee 1,317 2,397 290 916 200
Distributions due to shareholders -- -- -- -- 10,044
Due to redeemed shareholders -- -- -- -- 57,539
Accrued Expenses 37,626 52,968 23,563 33,966 11,232
--------------------------------------------------------------------------------
Total Liabilities 88,737 151,958 31,438 68,589 83,524
Net Assets $ 31,559,482 $55,125,619 $ 7,129,104 $21,004,331 $ 5,110,979
Shares Outstanding (unlimited
shares authorized, no par value) 2,619,167 2,901,886 710,281 2,036,734 558,507
Net Asset Value (Offering price
and redemption price per share) $ 12.05 $ 19.00 $ 10.04 $ 10.31 $ 9.15
The accompanying notes are an integral part of the financial statements
57
<PAGE>
Statements of Assets and Liabilities (Continued)
-----------------------------------------------
September 30, 1999
ICON Asia ICON N. Europe ICON S. Europe
Region Fund Region Fund Region Fund
--------------------------------------------
Assets
- ------
Investments at cost $27,208,561 $24,227,043 $ 5,878,064
------------------------------------------
Investments at value 33,930,448 25,810,076 5,490,530
Cash -- -- --
Receivables:
Fund shares sold 1,492 1,714 448
Interest 6,247 7,453 1,036
Dividends 72,922 29,814 40,880
Deferred organizational expenses 9,374 9,374 9,374
--------------------------------------------
Total Assets 34,020,483 25,858,431 5,542,268
Liabilities:
Payables:
Due to Custodian bank 208,899 1,756,903 202,385
Fund shares redeemed 164,866 57,095 9,827
Advisory fee 27,526 20,822 4,428
Fund accounting, custodial and
transfer agent fees 23,793 21,476 4,822
Administration fee 1,376 1,041 221
Distributions due to shareholders -- -- --
Due to redeemed shareholders -- -- --
Accrued Expenses 30,277 29,758 22,685
--------------------------------------------
Total Liabilities 456,737 1,887,095 244,368
Net Assets $33,563,746 $23,971,336 $ 5,297,900
Shares Outstanding (unlimited
shares authorized, no par value) 3,088,231 2,042,400 523,653
Net Asset Value (Offering price
and redemption price per share) $ 10.87 $ 11.74 $ 10.12
The accompanying notes are an integral part of the financial statements
</TABLE>
An Explanation of the Statement of Assets and Liabilities
- ---------------------------------------------------------
This statement lists the assets and liabilities of the Funds as of the last day
of the fiscal period.
The assets may consist of the market value of the securities held in the Funds
on that day, cash, any receivables (dividends declared not paid, interest due to
the Funds but not paid, securities sold but not settled, and Funds' shares
purchased by investors but not settled). The liabilities may consist of payables
for expenses incurred but not yet paid, Funds' shares redeemed but not settled,
securities for the portfolio bought but not settled.
The last line is the Net Asset Value (NAV) Per Share as of the last day of the
fiscal period. The NAV per share is calculated by dividing the Funds' net assets
(assets, at that day's market value, minus liabilities) by the number of Funds'
shares outstanding.
58
<PAGE>
<TABLE>
<CAPTION>
Statements of Operations
------------------------
For the year ended September 30, 1999
- -----------------------------------------------------------------------------------------------------------------------------
ICON Basic ICON Consumer ICON Energy ICON Financial ICON Healthcare
Materials Fund Cyclicals Fund Fund Services Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------
Investment Income:
<S> <C> <C> <C> <C> <C>
Interest $ 38,993 $ 56,674 $ 26,445 $ 20,832 $ 31,233
Dividends 240,161 461,639 137,283 152,995 134,130
Foreign taxes withheld (1,796) -- -- -- --
Total investment income 277,358 518,313 163,728 173,827 165,363
Expenses:
Advisory fees 171,976 582,809 137,737 104,440 292,840
Fund accounting, custodial and
transfer agent fees 27,965 89,959 22,752 17,908 46,554
Administration fees 8,561 29,140 6,887 5,222 14,642
Audit fees 6,496 22,086 5,229 3,946 11,090
Registration fees 10,370 13,620 11,470 10,570 10,670
Legal fees 3,557 10,790 2,730 1,629 5,253
Insurance expense 822 3,512 706 693 1,779
Amortization of deferred
organizational expenses 3,683 3,683 -- 3,683 3,683
Trustees fees & expenses 1,082 3,837 728 660 1,940
Shareholder reports 3,813 13,280 3,132 2,082 6,742
Other expenses 10,937 14,957 8,413 13,926 13,821
-----------------------------------------------------------------------------------
Total Expenses 249,262 787,673 199,784 164,759 409,014
-----------------------------------------------------------------------------------
Net investment income/(loss) 28,096 (269,360) (36,056) 9,068 (243,651)
-----------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments:
Net realized gain/(loss) from
investment transactions (1,955,997) (6,301,452) (3,465,711) 70,021 3,878,466
Net realized gain/(loss) from foreign
currency transactions -- -- -- -- --
Change in net unrealized appreciation or
depreciation on securities and foreign
currency translations 3,853,421 19,196,751 6,391,763 2,025,118 (4,881,850)
-----------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments: 1,897,424 12,895,299 2,926,052 2,095,139 (1,003,384)
-----------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations $ 1,925,520 $ 12,625,939 $ 2,889,996 $ 2,104,207 $ (1,247,035)
The accompanying notes are an integral part of the financial statements
(a) see note 4
59
<PAGE>
Statements of Operations (Continued)
-----------------------------------
For the year ended September 30, 1999
- -----------------------------------------------------------------------------------------------------------
ICON Leisure ICON Technology ICON Telecomm & ICON Transpor-
Fund Fund Utilities Fund tation Fund
- -----------------------------------------------------------------------------------------------------------
Investment Income:
Interest $ 40,392 $ 92,303 $ 27,239 $ 36,939
Dividends 463,430 118,161 310,533 330,674
Foreign taxes withheld (121) (1,909) -- --
Total investment income 503,701 208,555 337,772 367,613
Expenses:
Advisory fees 401,048 669,756 98,701 244,119
Fund accounting, custodial and
transfer agent fees 61,055 103,760 16,636 39,087
Administration fees 20,052 33,488 4,935 12,180
Audit fees 15,176 25,376 3,723 9,240
Registration fees 10,870 12,170 10,870 10,570
Legal fees 6,699 11,518 1,546 4,622
Insurance expense 2,537 4,217 621 1,480
Amortization of deferred
organizational expenses 3,500 3,683 3,683 3,683
Trustees fees & expenses 2,409 4,393 634 1,624
Shareholder reports 8,886 14,867 2,109 5,652
Other expenses 20,291 34,772 13,059 10,739
---------------------------------------------------------------
Total Expenses 552,523 918,000 156,517 342,996
---------------------------------------------------------------
Net investment income/(loss) (48,822) (709,445) 181,255 24,617
---------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments:
Net realized gain/(loss) from
investment transactions 12,124,958 19,133,380 3,206,174 1,633,421
Net realized gain/(loss) from foreign
currency transactions -- -- -- --
Change in net unrealized appreciation or
depreciation on securities and foreign
currency translations (5,128,788) 33,235,807 (1,900,743) 775,479
---------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments: 6,996,170 52,369,187 1,305,431 2,408,900
---------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations $ 6,947,348 $ 51,659,742 $ 1,486,686 $ 2,433,517
The accompanying notes are an integral part of the financial statements
(a) see note 4
60
<PAGE>
Statements of Operations (Continued)
-----------------------------------
For the year ended September 30, 1999
- ------------------------------------------------------------------------------------------------------------------
ICON Short-Term ICON Asia ICON N. Europe ICON S. Europe
Fixed Income Fund Region Fund Region Fund Region Fund
- ------------------------------------------------------------------------------------------------------------------
Investment Income:
Interest $ 255,228 $ 41,629 $ 48,399 $ 13,054
Dividends -- 288,164 591,358 105,910
Foreign taxes withheld -- (31,299) (71,305) (14,927)
Total investment income 255,228 298,494 568,452 104,037
Expenses:
Advisory fees 30,268 291,576 310,516 81,112
Fund accounting, custodial and
transfer agent fees 10,345 96,057 106,680 40,621
Administration fees 2,328 14,579 15,526 4,056
Audit fees 1,765 11,060 11,743 3,072
Registration fees 11,070 10,370 10,470 10,270
Legal fees 781 5,163 5,086 1,255
Insurance expense 260 1,713 1,973 534
Amortization of deferred
organizational expenses 3,683 3,683 3,683 3,683
Trustees fees & expenses 295 1,872 2,002 524
Shareholder reports 987 6,387 6,648 1,706
Other expenses (12,500)(a) 22,941 17,129 --
------------------------------------------------------------------
Total Expenses 49,282 465,401 491,456 146,833
------------------------------------------------------------------
Net investment income/(loss) 205,946 (166,907) 76,996 (42,796)
------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments:
Net realized gain/(loss) from
investment transactions 18,290 (2,102,343) 2,648,461 (563,610)
Net realized gain/(loss) from foreign
currency transactions -- (178,038) (229,605) (42,002)
Change in net unrealized appreciation or
depreciation on securities and foreign
currency translations (62,731) 19,339,153 1,399,867 1,570,952
------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments: (44,441) 17,058,772 3,818,723 965,340
------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations $ 161,505 $ 16,891,865 $ 3,895,719 $ 922,544
</TABLE>
The accompanying notes are an integral part of the financial statements
(a) see note 4
An Explanation of the Statements of Operations
- ----------------------------------------------
This financial statement provides details of the Funds' income, expenses, gains
and losses on securities and currency transactions (if any) and the change in
appreciation or depreciation of portfolio holdings.
The first section, "Investment Income," reports the dividends earned from
stocks, interest earned from interest-bearing securities held by the Funds, and
foreign taxes withheld (if any).
The next section reports the expenses incurred by the Funds, including advisory
fees, transfer agent fees, custodial fees, fund accounting fees, legal fees,
audit fees, administration fees, trustee fees and expenses, printing and postage
for mailing statements, financial reports, and prospectuses to shareholders.
The last section lists the increase and decrease in the market value of
securities held in the Funds' portfolios. A realized gain (or loss) occurs when
a Fund sells a security held in the portfolio. Unrealized gains (or losses)
represent the change in the market value of the securities held in the
portfolio, either appreciation or depreciation.
The net result of all these sections is the net increase (decrease) in net
assets resulting from operations.
61
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
-----------------------------------
For the periods ended as indicated
- -----------------------------------------------------------------------------------------------------------------------------
ICON Basic ICON Consumer
Materials Fund Cyclicals Fund
Year Ended Year Ended Year Ended Year Ended
Sept. 30, 1999 Sept. 30, 1998 Sept. 30, 1999 Sept. 30, 1998
- -----------------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 28,096 $ 20,645 $ (269,360) $ (142,086)
Net realized gain/(loss) from
investment transactions (1,955,997) (10,033,591) (6,301,452) 1,433,170
Net realized gain/(loss) from
foreign currency transactions -- -- -- --
Changes in unrealized net appreciation or
(depreciation) on securities and foreign
currency translations 3,853,421 (6,642,816) 19,196,751 (21,598,774)
--------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 1,925,520 (16,655,762) 12,625,939 (20,307,690)
Dividends and Distributions to Shareholders from:
Net investment income (53,645) -- -- --
Distributions in excess of net investment income -- -- -- --
Net capital gains -- -- -- --
Distributions in excess of net capital gains -- (884,415) (1,483,603) --
--------------------------------------------------------------------
Net decrease from dividends and distributions (53,645) (884,415) (1,483,603) --
Fund Share Transactions:
Shares sold 30,972,639 26,837,058 30,654,568 73,192,406
Reinvested dividends and distributions 53,589 884,415 1,482,251 --
Shares repurchased (23,842,747) (43,114,010) (37,930,762) (24,797,697)
--------------------------------------------------------------------
Net increase (decrease) from fund share transactions 7,183,481 (15,392,537) (5,793,943) 48,394,709
--------------------------------------------------------------------
Total increase (decrease) in net assets 9,055,356 (32,932,714) 5,348,393 28,087,019
Net Assets:
Beginning of Period 17,317,943 50,250,657 49,002,823 20,915,804
--------------------------------------------------------------------
End of Period $ 26,373,299 $ 17,317,943 $ 54,351,216 $ 49,002,823
--------------------------------------------------------------------
Net Assets consist of:
Paid in capital $ 38,063,659 $ 30,885,082 $ 61,405,259 $ 67,468,562
Accumulated undistributed net
investment income/(loss) -- 20,645 -- --
Accumulated undistributed net realized
gain/(loss) from investments (11,964,486) (10,008,489) (6,493,971) 1,291,084
Accumulated net realized gain/(loss)
from foreign currency transactions -- -- -- --
Unrealized appreciation/depreciation on
securities and foreign currency translations 274,126 (3,579,295) (560,072) (19,756,823)
--------------------------------------------------------------------
Net Assets $ 26,373,299 $ 17,317,943 $ 54,351,216 $ 49,002,823
--------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 4,297,943 3,238,247 3,146,962 6,769,232
Reinvested dividends and distributions 8,347 121,988 149,270 --
Shares repurchased (3,330,617) (5,338,963) (3,907,678) (2,448,362)
--------------------------------------------------------------------
Net increase/(decrease) 975,673 (1,978,728) (611,446) 4,320,870
--------------------------------------------------------------------
Shares outstanding beginning of period 2,630,517 4,609,245 6,229,576 1,908,706
Shares outstanding end of period 3,606,190 2,630,517 5,618,130 6,229,576
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of securities $ 26,688,867 $ 27,564,666 $ 15,815,132 $ 75,074,743
Proceeds from sales of securities 19,410,414 39,263,277 24,081,434 26,741,409
Purchases of long-term
U.S. government agencies -- -- -- --
Proceeds from sales of long-term
U.S. government agencies -- -- -- --
The accompanying notes are an integral part of the financial statements
(a) For the period November 5, 1997 (commencement of operations) to September 30, 1998
62
<PAGE>
Statements of Changes in Net Assets (Continued)
-----------------------------------------------
For the periods ended as indicated
- ----------------------------------------------------------------------------------------------------------------------
ICON Energy ICON Financial
Fund Services Fund
Year Ended Period Ended Year Ended Year Ended
Sept. 30, 1999 Sept. 30, 1998(a) Sept. 30, 1999 Sept. 30, 1998
- ----------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ (36,056) $ 119,672 $ 9,068 $ 97,786
Net realized gain/(loss) from
investment transactions (3,465,711) (1,379,407) 70,021 2,218,332
Net realized gain/(loss) from
foreign currency transactions -- -- -- --
Changes in unrealized net appreciation or
(depreciation) on securities and foreign
currency translations 6,391,763 (7,814,398) 2,025,118 (4,454,208)
------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 2,889,996 (9,074,133) 2,104,207 (2,138,090)
Dividends and Distributions to Shareholders from:
Net investment income (83,614) -- (82,357) (33,308)
Distributions in excess of net investment income (36,056) -- (3,931) --
Net capital gains -- -- (2,119,756) (104,229)
Distributions in excess of net capital gains -- -- -- --
------------------------------------------------------------------
Net decrease from dividends and distributions (119,670) -- (2,206,044) (137,537)
Fund Share Transactions:
Shares sold 25,058,781 49,426,596 12,916,650 14,924,224
Reinvested dividends and distributions 119,107 -- 2,203,753 137,537
Shares repurchased (21,053,087) (28,017,905) (26,745,880) (27,812,645)
------------------------------------------------------------------
Net increase (decrease) from fund share transactions 4,124,801 21,408,691 (11,625,477) (12,750,884)
------------------------------------------------------------------
Total increase (decrease) in net assets 6,895,127 12,334,558 (11,727,314) (15,026,511)
Net Assets:
Beginning of Period 12,334,558 -- 17,210,534 32,237,045
------------------------------------------------------------------
End of Period $ 19,229,685 $ 12,334,558 $ 5,483,220 $ 17,210,534
------------------------------------------------------------------
Net Assets consist of:
Paid in capital $ 25,497,438 $ 21,408,691 $ 6,181,657 $ 17,807,134
Accumulated undistributed net
investment income/(loss) -- 119,672 -- 73,288
Accumulated undistributed net realized
gain/(loss) from investments (4,845,118) (1,379,407) 60,436 2,114,103
Accumulated net realized gain/(loss)
from foreign currency transactions -- -- -- --
Unrealized appreciation/depreciation on
securities and foreign currency translations (1,422,635) (7,814,398) (758,873) (2,783,991)
------------------------------------------------------------------
Net Assets $ 19,229,685 $ 12,334,558 $ 5,483,220 $ 17,210,534
------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 3,285,662 5,234,981 1,295,031 1,284,317
Reinvested dividends and distributions 21,854 -- 223,731 13,658
Shares repurchased (2,841,236) (3,291,547) (2,746,429) (2,528,777)
------------------------------------------------------------------
Net increase/(decrease) 466,280 1,943,434 (1,227,667) (1,230,802)
------------------------------------------------------------------
Shares outstanding beginning of period 1,943,434 -- 1,837,793 3,068,595
Shares outstanding end of period 2,409,714 1,943,434 610,126 1,837,793
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of securities $ 7,845,028 44,186,041 $ 5,497,159 $ 23,248,572
Proceeds from sales of securities 4,585,700 22,688,374 19,549,111 35,775,710
Purchases of long-term
U.S. government agencies -- -- -- --
Proceeds from sales of long-term
U.S. government agencies -- -- -- --
The accompanying notes are an integral part of the financial statements
(a) For the period November 5, 1997 (commencement of operations) to September 30, 1998
63
<PAGE>
Statements of Changes in Net Assets (Continued)
-----------------------------------------------
For the periods ended as indicated
- --------------------------------------------------------------------------------------------------------------------
ICON Healthcare ICON Leisure
Fund Fund
Year Ended Year Ended Year Ended Year Ended
Sept. 30, 1999 Sept. 30, 1998 Sept. 30, 1999 Sept. 30, 1998
- --------------------------------------------------------------------------------------------------------------------
Operations:
<S> <C> <C> <C> <C>
Net investment income/(loss) $ (243,651) $ (76,391) $ (48,822) $ 53,002
Net realized gain/(loss) from
investment transactions 3,878,466 11,684,946 12,124,958 5,787,424
Net realized gain/(loss) from
foreign currency transactions -- -- --
Changes in unrealized net appreciation or
(depreciation) on securities and foreign
currency translations (4,881,850) (6,562,138) (5,128,788) (1,399,091)
---------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations (1,247,035) 5,046,417 6,947,348 4,441,335
Dividends and Distributions to Shareholders from:
Net investment income -- -- (742,644) --
Distributions in excess of net investment income -- -- (98,822) --
Net capital gains (6,938,008) (5,107,561) (3,723,215) (231,012)
Distributions in excess of net capital gains -- -- -- --
---------------------------------------------------------------
Net decrease from dividends and distributions (6,938,008) (5,107,561) (4,564,681) (231,012)
Fund Share Transactions:
Shares sold 12,506,015 35,498,828 13,536,073 31,663,895
Reinvested dividends and distributions 6,904,056 5,107,561 4,547,293 231,012
Shares repurchased (17,828,768) (86,698,742) (43,332,972) (48,287,140)
---------------------------------------------------------------
Net increase (decrease) from fund share transactions 1,581,303 (46,092,353) (25,249,606) (16,392,233)
---------------------------------------------------------------
Total increase (decrease) in net assets (6,603,740) (46,153,497) (22,866,939) (12,181,910)
Net Assets:
Beginning of Period 31,153,349 77,306,846 54,426,421 66,608,331
---------------------------------------------------------------
End of Period $ 24,549,609 $ 31,153,349 $ 31,559,482 $ 54,426,421
---------------------------------------------------------------
Net Assets consist of:
Paid in capital $ 26,402,517 $ 19,651,904 $ 25,050,732 $ 44,419,066
Accumulated undistributed net
investment income/(loss) -- -- -- 791,466
Accumulated undistributed net realized
gain/(loss) from investments 856,470 9,328,973 7,350,842 4,929,193
Accumulated net realized gain/(loss)
from foreign currency transactions -- -- -- --
Unrealized appreciation/depreciation on
securities and foreign currency translations (2,709,378) 2,172,472 (842,092) 4,286,696
---------------------------------------------------------------
Net Assets $ 24,549,609 $ 31,153,349 $ 31,559,482 $ 54,426,421
---------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 1,373,903 2,990,425 1,031,314 2,745,482
Reinvested dividends and distributions 767,971 486,896 385,038 20,626
Shares repurchased (1,800,628) (7,306,493) (3,413,980) (4,018,478)
---------------------------------------------------------------
Net increase/(decrease) 341,246 (3,829,172) (1,997,628) (1,252,370)
---------------------------------------------------------------
Shares outstanding beginning of period 2,735,408 6,564,580 4,616,795 5,869,165
Shares outstanding end of period 3,076,654 2,735,408 2,619,167 4,616,795
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of securities $ 24,448,943 $ 28,208,249 $ 19,588,075 $ 24,408,049
Proceeds from sales of securities 30,773,502 77,799,421 48,828,211 40,990,664
Purchases of long-term
U.S. government agencies -- -- -- --
Proceeds from sales of long-term
U.S. government agencies -- -- -- --
The accompanying notes are an integral part of the financial statements
(a) For the period November 5, 1997 (commencement of operations) to September 30, 1998
64
</TABLE>
<PAGE>
An Explanation of the Statements of Changes in Net Assets
- ---------------------------------------------------------
These statements report the increase or decrease in the Funds' net assets during
the reporting period. Changes in the Funds' net assets can be attributed to
investment operations (The Statement of Operations), dividends or distributions
to Fund shareholders, and purchases and sales of Fund shares. This schedule may
be used by shareholders to determine if the Funds' growth or decline was a
result of operations or increases in the number of Fund shares being purchased
or sold.
The first section is a summary of the Statement of Operations discussed on a
previous page.
The next section summarizes the change due to capital gain and dividend
distributions to Fund shareholders. If Fund shareholders receive their dividends
and distributions in cash, money is taken out of the Fund to make the payment.
If Fund shareholders reinvest their dividends and distributions, the Fund's net
assets will not be affected.
The net increase (decrease) in net assets from Fund share transactions includes
the increase due to the purchase of Fund shares, the decrease due to Fund shares
redeemed from shareholders, and the reinvestment of Fund dividend and
distributions.
The section "Net Assets consist of" itemizes the components of the Fund's net
assets. Since funds usually distribute substantially all earnings so as to not
incur a fund level income tax, a significant portion of the net assets is
shareholder capital.
65
<PAGE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
-----------------------------------
For the periods ended as indicated
- -----------------------------------------------------------------------------------------------------------------------
ICON Technology ICON Telecomm &
Fund Utilities Fund
Year Ended Year Ended Year Ended Year Ended
Sept. 30, 1999 Sept. 30, 1998 Sept. 30, 1999 Sept. 30, 1998
-----------------------------------------------------------------
Operations:
- -----------
<S> <C> <C> <C> <C>
Net investment income/(loss) $ (709,445) $ (723,187) $ 181,255 $ 777,049
Net realized gain/(loss) from
investment transactions 19,133,380 5,250,667 3,206,174 10,444,914
Net realized gain/(loss) from
foreign currency transactions -- -- -- --
Changes in unrealized net appreciation or
(depreciation) on securities and foreign
currency translations 33,235,807 (21,889,268) (1,900,743) 1,429,447
-----------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 51,659,742 (17,361,788) 1,486,686 12,651,410
Dividends and Distributions to Shareholders from:
Net investment income -- -- (650,461) (266,587)
Distributions in excess of net investment income -- -- -- --
Net capital gains (4,514,600) (2,209,608) (3,257,812) (42,972)
Distribution in excess of net capital gains -- -- -- --
-----------------------------------------------------------------
Net decrease from dividends and distributions (4,514,600) (2,209,608) (3,908,273) (309,559)
Fund Share Transactions:
Shares sold 48,801,630 97,384,184 8,876,725 77,148,809
Reinvested dividends and distributions 4,502,071 2,209,608 3,786,730 307,627
Shares repurchased (105,817,125) (61,377,016) (26,861,906) (86,471,237)
-----------------------------------------------------------------
Net increase (decrease) from fund share transactions (52,513,424) 38,216,776 (14,198,451) (9,014,801)
-----------------------------------------------------------------
Total increase (decrease) in net assets (5,368,282) 18,645,380 (16,620,038) 3,327,050
Net Assets:
Beginning of Period 60,493,901 41,848,521 23,749,142 20,422,092
-----------------------------------------------------------------
End of Period $ 55,125,619 $ 60,493,901 $ 7,129,104 $ 23,749,142
-----------------------------------------------------------------
Net Assets consist of:
Paid in capital $ 28,236,852 $ 70,941,017 $ 4,384,602 $ 10,203,486
Accumulated undistributed net
investment income/(loss) -- -- 113,833 583,039
Accumulated undistributed net realized
gain/(loss) from investments 8,562,006 4,461,930 2,013,709 10,444,914
Accumulated net realized gain/(loss)
from foreign currency transactions -- -- -- --
Unrealized appreciation/depreciation on
securities and foreign currency translations 18,326,761 (14,909,046) 616,960 2,517,703
-----------------------------------------------------------------
Net Assets $ 55,125,619 $ 60,493,901 $ 7,129,104 $ 23,749,142
-----------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 3,247,322 8,836,734 737,209 6,461,776
Reinvested dividends and distributions 361,903 229,450 386,401 25,678
Shares repurchased (7,284,428) (5,717,950) (2,089,973) (6,732,956)
-----------------------------------------------------------------
Net increase/(decrease) (3,675,203) 3,348,234 (966,363) (245,502)
-----------------------------------------------------------------
Shares outstanding beginning of period 6,577,089 3,228,855 1,676,644 1,922,146
Shares outstanding end of period 2,901,886 6,577,089 710,281 1,676,644
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of securities $ 20,233,772 $ 57,668,360 $ 1,842,403 $ 54,281,448
Proceeds from sales of securities 80,476,999 21,778,968 18,134,169 63,596,266
Purchases of long-term
U.S. government agencies -- -- -- --
Proceeds from sales of long-term
U.S. government agencies -- -- -- --
The accompanying notes are an integral part of the financial statements
66
<PAGE>
Statements of Changes in Net Assets (Continued)
-----------------------------------------------
For the periods ended as indicated
- --------------------------------------------------------------------------------------------------------------------------
ICON Transportation ICON Short-Term
Fund Fixed Income Fund
Year Ended Year Ended Year Ended Year Ended
Sept. 30, 1999 Sept. 30, 1998 Sept. 30, 1999 Sept. 30, 1998
Operations: -------------------------------------------------------------------
- -----------
<S> <C> <C> <C> <C>
Net investment income/(loss) $ 24,617 $ 14,432 $ 205,946 $ 992,101
Net realized gain/(loss) from
investment transactions 1,633,421 1,798,699 18,290 140,283
Net realized gain/(loss) from
foreign currency transactions -- -- -- --
Changes in unrealized net appreciation or
(depreciation) on securities and foreign
currency translations 775,479 (5,651,265) (62,731) (110,926)
--------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 2,433,517 (3,838,134) 161,505 1,021,458
Dividends and Distributions to Shareholders from:
Net investment income (29,487) (11,614) (323,211) (865,022)
Distributions in excess of net investment income (9,066) -- -- --
Net capital gains (1,845,827) (471,107) (143,769) (345,113)
Distribution in excess of net capital gains -- -- -- --
--------------------------------------------------------------------
Net decrease from dividends and distributions (1,884,380) (482,721) (466,980) (1,210,135)
Fund Share Transactions:
Shares sold 24,479,459 5,477,586 28,943,268 104,764,409
Reinvested dividends and distributions 1,882,777 482,721 486,795 1,131,298
Shares repurchased (17,224,608) (12,853,191) (29,363,658) (181,738,914)
--------------------------------------------------------------------
Net increase (decrease) from fund share transactions 9,137,628 (6,892,884) 66,405 (75,843,207)
--------------------------------------------------------------------
Total increase (decrease) in net assets 9,686,765 (11,213,739) (239,069) (76,031,884)
Net Assets:
Beginning of Period 11,317,566 22,531,305 5,350,048 81,381,932
--------------------------------------------------------------------
End of Period $ 21,004,331 $ 11,317,566 $ 5,110,979 $ 5,350,048
--------------------------------------------------------------------
Net Assets consist of:
Paid in capital $ 20,579,953 $ 11,442,325 $ 5,097,370 $ 5,030,965
Accumulated undistributed net
investment income/(loss) -- 4,870 9,814 127,078
Accumulated undistributed net realized
gain/(loss) from investments 1,577,228 1,798,700 18,290 143,769
Accumulated net realized gain/(loss)
from foreign currency transactions -- -- -- --
Unrealized appreciation/depreciation on
securities and foreign currency translations (1,152,850) (1,928,329) (14,495) 48,236
-------------------------------------------------------------------
Net Assets $ 21,004,331 $ 11,317,566 $ 5,110,979 $ 5,350,048
-------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 2,178,736 468,177 3,106,221 10,667,818
Reinvested dividends and distributions 173,209 44,246 52,546 114,918
Shares repurchased (1,512,697) (1,132,684) (3,146,922) (18,352,997)
-------------------------------------------------------------------
Net increase/(decrease) 839,248 (620,261) 11,845 (7,570,261)
-------------------------------------------------------------------
Shares outstanding beginning of period 1,197,486 1,817,747 546,662 8,116,923
2,036,734 1,197,486 558,507 546,662
Shares outstanding end of period
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities) $ 17,860,451 $ 1,811,710 $ -- $ --
Purchases of securities 11,086,385 9,061,170 -- --
Proceeds from sales of securities
Purchases of long-term -- -- $ 2,012,760 $ 14,984,765
U.S. government agencies
Proceeds from sales of long-term -- -- 2,515,675 46,525,838
U.S. government agencies
The accompanying notes are an integral part of the financial statements
67
<PAGE>
Statements of Changes in Net Assets (Continued)
-----------------------------------------------
For the periods ended as indicated
- ----------------------------------------------------------------------------------------------------------------------
ICON Asia ICON N. Europe
Region Fund Region Fund
Year Ended Year Ended Year Ended Year Ended
Operations: Sept. 30, 1999 Sept. 30, 1998 Sept. 30, 1999 Sept. 30, 1998
- ----------- ------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net investment income/(loss) $ (166,907) $ (205,283) $ 76,996 $ 200,726
Net realized gain/(loss) from
investment transactions (2,102,343) (11,335,137) 2,648,461 7,084,573
Net realized gain/(loss) from
foreign currency transactions (178,038) (205,712) (229,605) (144,106)
Changes in unrealized net appreciation or
(depreciation) on securities and foreign
currency translations 19,339,153 (10,528,930) 1,399,867 (3,687,785)
------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 16,891,865 (22,275,062) 3,895,719 3,453,408
Dividends and Distributions to Shareholders from:
Net investment income -- -- (493,690) (236,890)
Distributions in excess of net investment income -- -- (8,471) --
Net capital gains -- -- (3,503,483) (558,284)
Distribution in excess of net capital gains -- -- -- --
------------------------------------------------------------------
Net decrease from dividends and distributions -- -- (4,005,644) (795,174)
Fund Share Transactions:
Shares sold 56,771,414 50,431,060 51,692,956 41,024,199
Reinvested dividends and distributions -- -- 3,996,911 795,174
Shares repurchased (66,829,202) (59,705,150) (71,334,577) (54,698,301)
------------------------------------------------------------------
Net increase (decrease) from fund share transactions (10,057,788) (9,274,090) (15,644,710) (12,878,928)
------------------------------------------------------------------
Total increase (decrease) in net assets 6,834,077 (31,549,152) (15,754,635) (10,220,694)
Net Assets:
Beginning of Period 26,729,669 58,278,821 39,725,971 49,946,665
------------------------------------------------------------------
End of Period $ 33,563,746 $ 26,729,669 $ 23,971,336 $ 39,725,971
------------------------------------------------------------------
Net Assets consist of:
Paid in capital $ 40,457,377 $ 50,887,784 $ 20,440,596 $ 32,866,273
Accumulated undistributed net
investment income/(loss) (177,046) (205,712) (207,972) 416,694
Accumulated undistributed net realized
gain/(loss) from investments (13,059,904) (11,134,607) 2,634,536 6,509,090
Accumulated net realized gain/(loss)
from foreign currency transactions (378,568) (200,530) (478,857) (249,252)
Unrealized appreciation/depreciation on
securities and foreign currency translations 6,721,887 (12,617,266) 1,583,033 183,166
------------------------------------------------------------------
Net Assets $ 33,563,746 $ 26,729,669 $ 23,971,336 $ 39,725,971
------------------------------------------------------------------
Transactions in Fund Shares:
Shares sold 6,208,381 6,402,144 4,550,005 3,234,854
Reinvested dividends and distributions -- -- 347,255 72,619
Shares repurchased (7,511,144) (7,874,666) (6,270,705) (4,408,291)
------------------------------------------------------------------
Net increase/(decrease) (1,302,763) (1,472,522) (1,373,445) (1,100,818)
------------------------------------------------------------------
Shares outstanding beginning of period 4,390,994 5,863,516 3,415,845 4,516,663
3,088,231 4,390,994 2,042,400 3,415,845
Shares outstanding end of period
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities) $ 17,697,099 $ 30,912,127 $ 14,913,579 $ 27,509,067
Purchases of securities 31,653,017 38,905,083 34,313,106 41,448,427
Proceeds from sales of securities
Purchases of long-term -- -- -- --
U.S. government agencies
Proceeds from sales of long-term
U.S. government agencies -- -- -- --
The accompanying notes are an integral part of the financial statements
68
<PAGE>
Statements of Changes in Net Assets (Continued)
-----------------------------------------------
For the periods ended as indicated
- -----------------------------------------------------------------------------------
ICON S. Europe
Region Fund
Year Ended Year Ended
Operations: Sept. 30, 1999 Sept. 30, 1998
- ----------- -------------------------------
<S> <C> <C>
Net investment income/(loss) $ (42,796) $ (52,094)
Net realized gain/(loss) from
investment transactions (563,610) 9,764,871
Net realized gain/(loss) from
foreign currency transactions (42,002) (70,662)
Changes in unrealized net appreciation or
(depreciation) on securities and foreign
currency translations 1,570,952 (5,229,529)
------------------------------
Net increase/(decrease) in net assets
resulting from operations 922,544 4,412,586
Dividends and Distributions to Shareholders from:
Net investment income -- (113,918)
Distributions in excess of net investment income (23,988) --
Net capital gains (1,955,771) (1,038,913)
Distribution in excess of net capital gains -- --
------------------------------
Net decrease from dividends and distributions (1,979,759) (1,152,831)
Fund Share Transactions:
Shares sold 10,655,076 43,453,014
Reinvested dividends and distributions 1,966,878 1,152,831
Shares repurchased (15,718,495) (59,501,691)
------------------------------
Net increase (decrease) from fund share transaction (3,096,541) (14,895,846)
------------------------------
Total increase (decrease) in net assets (4,153,756) (11,636,091)
Net Assets:
Beginning of Period 9,451,656 21,087,747
------------------------------
End of Period $ 5,297,900 $ 9,451,656
------------------------------
Net Assets consist of:
Paid in capital $ 6,335,746 $ 2,744,882
Accumulated undistributed net
investment income/(loss) (48,048) (60,670)
Accumulated undistributed net realized
gain/(loss) from investments (495,443) 8,790,749
Accumulated net realized gain/(loss)
from foreign currency transactions (106,821) (64,819)
Unrealized appreciation/depreciation on
securities and foreign currency translations (387,534) (1,958,486)
------------------------------
Net Assets $ 5,927,900 $ 9,451,656
------------------------------
Transactions in Fund Shares:
Shares sold 870,190 3,141,567
Reinvested dividends and distributions 172,231 101,037
Shares repurchased (1,315,265) (4,217,857)
------------------------------
Net increase/(decrease) (272,844) (975,253)
------------------------------
Shares outstanding beginning of period 796,497 1,771,750
523,653 796,497
Shares outstanding end of period
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities) $ 5,451,829 $ 25,142,627
Purchases of securities 10,430,521 41,727,283
Proceeds from sales of securities
Purchases of long-term -- --
U.S. government agencies
Proceeds from sales of long-term
U.S. government agencies -- --
The accompanying notes are an integral part of the financial statements
69
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
--------------------
For a share outstanding throughout each of the periods ended as indicated
- -----------------------------------------------------------------------------------------------------------------------------------
ICON Basic ICON Consumer
Materials Fund Cyclicals Fund
Year Ended Period Ended Year Ended Period Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1997(a) 1999 1998 1997(b)
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 6.58 $ 10.90 $ 10.00 $ 7.87 $ 10.96 $ 10.00
Income from investment operations
Net investment income (loss) 0.02 0.02 (0.01) -- (0.01) (0.01)
Net gains or (losses) on securities
(both realized and unrealized) 0.74 (4.08) 0.91 2.04 (3.08) 0.97
---------------------------------------------------------------------------------------
Total from investment operations 0.76 (4.06) 0.90 2.04 (3.09) 0.96
Less dividends and distributions
Dividends (from net investment income) (0.03) -- -- -- -- --
Distributions in excess of net -- -- -- -- -- --
investment income
Distributions (from net realized gain) -- (0.26) -- -- -- --
Distributions in excess of net
realized gains -- -- -- (0.24) -- --
---------------------------------------------------------------------------------------
Total distributions (0.03) (0.26) -- (0.24) -- --
---------------------------------------------------------------------------------------
Net asset value, end of period $ 7.31 $ 6.58 $ 10.90 $ 9.67 $ 7.87 $ 10.96
---------------------------------------------------------------------------------------
Total Return 11.65% (37.45%) 9.00% 25.78% (28.26%) 9.60%
Net assets, end of period (in thousands) $ 26,373 $ 17,318 $ 50,251 $ 54,351 $ 49,003 $ 20,916
Average net assets for the period
(in thousands) $ 17,145 $ 27,117 $ 45,001 $ 58,294 $ 39,883 $ 19,876
Ratio of expenses to average net assets* 1.45% 1.33% 1.45% 1.35% 1.37% 1.89%
Ratio of net investment income (loss) to
average net assets* 0.16% 0.08% (0.24%) (0.46%) (0.36%) (0.67%)
Portfolio turnover rate 118.29% 106.70% 32.35% 27.83% 72.42% 0.00%
- ----------
* Annualized for periods less than a year.
a For the period May 5, 1997 (commencement of operations) to September 30, 1997
b For the period July 9, 1997 (commencement of operations) to September 30, 1997
c For the period November 5, 1997 (commencement of operations) to September 30, 1998
d For the period July 1, 1997 (commencement of operations) to September 30, 1997
e For the period February 24, 1997 (commencement of operations) to September 30, 1997
f For the period May 9, 1997 (commencement of operations) to September 30, 1997
g For the period February 19, 1997 (commencement of operations) to September 30, 1997
h For the period July 9, 1997 (commencement of operations) to September 30, 1997
i For the period May 9, 1997 (commencement of operations) to September 30, 1997
j For the period February 7, 1997 (commencement of operations) to September 30, 1997
k For the period February 25, 1997 (commencement of operations) to September 30, 1997
l For the period February 18, 1997 (commencement of operations) to September 30, 1997
m For the period February 20, 1997 (commencement of operations) to September 30, 1997
The accompanying notes are an integral part of the financial statements
70
<PAGE>
Financial Highlights (Continued)
--------------------------------
For a share outstanding throughout each of the periods ended as indicated
- --------------------------------------------------------------------------------------------------------------------
ICON Energy ICON Financial
Fund Services Fund
Year Ended Period Ended Year Ended Period Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998(c) 1999 1998 1997(d)
--------------------------------------------------------------------------
Net asset value, beginning of period $ 6.35 $ 10.00 $ 9.37 $ 10.51 $ 10.00
Income from investment operations
Net investment income (loss) 0.01 0.06 0.02 0.04 0.01
Net gains or (losses) on securities
(both realized and unrealized) 1.69 (3.71) 1.05 (1.14) 0.50
--------------------------------------------------------------------------
Total from investment operations 1.70 (3.65) 1.07 (1.10) 0.51
Less dividends and distributions
Dividends (from net investment income) (0.05) -- (0.04) (0.01) --
Distributions in excess of net (0.02) -- (0.02) -- --
investment income
Distributions (from net realized gain) -- -- (1.39) (0.03) --
Distributions in excess of net
realized gains -- -- -- -- --
--------------------------------------------------------------------------
Total distributions (0.07) -- (1.45) (0.04) --
--------------------------------------------------------------------------
Net asset value, end of period $ 7.98 $ 6.35 $ 8.99 $ 9.37 $ 10.51
--------------------------------------------------------------------------
Total Return 27.28% (36.50%) 10.05% (10.46%) 5.10%
Net assets, end of period (in thousands) 19,230 $ 12,335 $ 5,483 $ 17,211 $ 32,23
Average net assets for the period
(in thousands) 13,801 $ 21,128 $ 10,415 $ 28,304 $ 29,80
Ratio of expenses to average net assets* 1.45% 1.20% 1.58% 1.33% 1.70%
Ratio of net investment income (loss) to
average net assets* (0.26%) 0.51% 0.09% 0.35% 0.12%
Portfolio turnover rate 34.41% 112.62% 53.29% 87.68% 0.00%
- ----------
* Annualized for periods less than a year.
a For the period May 5, 1997 (commencement of operations) to September 30, 1997
b For the period July 9, 1997 (commencement of operations) to September 30, 1997
c For the period November 5, 1997 (commencement of operations) to September 30, 1998
d For the period July 1, 1997 (commencement of operations) to September 30, 1997
e For the period February 24, 1997 (commencement of operations) to September 30, 1997
f For the period May 9, 1997 (commencement of operations) to September 30, 1997
g For the period February 19, 1997 (commencement of operations) to September 30, 1997
h For the period July 9, 1997 (commencement of operations) to September 30, 1997
i For the period May 9, 1997 (commencement of operations) to September 30, 1997
j For the period February 7, 1997 (commencement of operations) to September 30, 1997
k For the period February 25, 1997 (commencement of operations) to September 30, 1997
l For the period February 18, 1997 (commencement of operations) to September 30, 1997
m For the period February 20, 1997 (commencement of operations) to September 30, 1997
The accompanying notes are an integral part of the financial statements
71
<PAGE>
Financial Highlights (Continued)
--------------------------------
For a share outstanding throughout each of the periods ended as indicated
- -----------------------------------------------------------------------------------------------------------------------------------
ICON Healthcare ICON Leisure
Fund Fund
Year Ended Period Ended Year Ended Period Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1997(e) 1999 1998 1997(f)
--------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.39 $ 11.78 $ 10.00 $ 11.79 $ 11.35 $ 10.00
Income from investment operations
Net investment income (loss) -- 0.02 (0.04) 0.10 0.02 (0.01)
Net gains or (losses) on securities
(both realized and unrealized) (0.25) 0.35 1.82 1.61 0.45 1.36
--------------------------------------------------------------------------------------
Total from investment operations (0.25) 0.37 1.78 1.71 0.47 1.35
Less dividends and distributions
Dividends (from net investment income) -- -- -- (0.24) -- --
Distributions in excess of net -- -- -- (0.03) -- --
investment income
Distributions (from net realized gain) (3.16) (0.76) -- (1.18) (0.03) --
Distributions in excess of net
realized gains -- -- -- -- -- --
--------------------------------------------------------------------------------------
Total distributions (3.16) (0.76) -- (1.45) (0.03) --
--------------------------------------------------------------------------------------
Net asset value, end of period $ 7.98 $ 11.39 $ 11.78 $ 12.05 $ 11.79 $ 11.35
--------------------------------------------------------------------------------------
Total Return (5.34%) 3.77% 17.80% 14.76% 4.18% 13.50%
Net assets, end of period (in thousands $ 24,550 $ 31,153 $ 77,307$ 31,559$ 54,426$ 66,608
Average net assets for the period
(in thousands) $ 29,272 $ 56,620 $ 59,164$ 40,054 $ 74,443 $ 45,444
Ratio of expenses to average net assets* 1.40% 1.24% 1.45% 1.38% 1.30% 1.48%
Ratio of net investment income (loss) to
average net assets* (0.83%) (0.13%) (0.80%) (0.12%) 0.07% (0.36%)
Portfolio turnover rate 85.99% 52.16% 71.81% 49.22% 34.17% 2.52%
- ----------
* Annualized for periods less than a year.
a For the period May 5, 1997 (commencement of operations) to September 30, 1997
b For the period July 9, 1997 (commencement of operations) to September 30, 1997
c For the period November 5, 1997 (commencement of operations) to September 30, 1998
d For the period July 1, 1997 (commencement of operations) to September 30, 1997
e For the period February 24, 1997 (commencement of operations) to September 30, 1997
f For the period May 9, 1997 (commencement of operations) to September 30, 1997
g For the period February 19, 1997 (commencement of operations) to September 30, 1997
h For the period July 9, 1997 (commencement of operations) to September 30, 1997
i For the period May 9, 1997 (commencement of operations) to September 30, 1997
j For the period February 7, 1997 (commencement of operations) to September 30, 1997
k For the period February 25, 1997 (commencement of operations) to September 30, 1997
l For the period February 18, 1997 (commencement of operations) to September 30, 1997
m For the period February 20, 1997 (commencement of operations) to September 30, 1997
The accompanying notes are an integral part of the financial statements
72
</TABLE>
<PAGE>
An Explanation of the Financial Highlights
- ------------------------------------------
This schedule provides an analysis of the items that affected the Funds' net
asset value, on a per share basis. This schedule provides the total return,
distributions, assets in the Fund, expense ratios and portfolio turnover.
The first line is the beginning of period net asset value per share (NAV) and
the components of the current fiscal period's activity is shown in sections that
follow. The increase or (decrease) due to investment operations is first,
followed by gains or (losses), either realized or unrealized, then dividends and
distributions are subtracted to arrive at the NAV per share at the end of the
fiscal period.
Also included in this schedule are the Funds' expense ratios, or percentage of
net assets that was used to cover the operating expenses of the Fund during the
period. This is determined by dividing the total expenses incurred by the Fund
by the average net assets in the Fund during the year.
The next item on the schedule is the ratio of net investment income, which is
the net investment income earned from investment operations divided by the
average net assets of the Funds during the reporting period.
The next item is the portfolio turnover rate, which is a measure of the amount
of buying and selling activity in the Funds' portfolio. The turnover is affected
by many things including, market conditions, changes in the size of the Fund,
due to purchases or redemptions by shareholders, the types of Fund investments,
and the investment style of the portfolio manager. A 100% rate implies that an
amount equal to the value of the entire portfolio is turned over during the
reporting period, a 50% rate means that an amount equal to the value of half the
portfolio is traded during the reporting period.
73
<PAGE>
<TABLE>
<CAPTION>
Financial Highlights
--------------------
For a share outstanding throughout each of the periods ended as indicated
- -------------------------------------------------------------------------------------------------------------------------------
ICON Technology ICON Telecomm &
Fund Utilities Fund
Year Ended Period Ended Year Ended Period Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1997(g) 1999 1998 1997(h)
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.20 $ 12.96 $ 10.00 $ 14.17 $ 10.63 $ 10.00
---------------------------------------------------------------------------------------
Income from investment operations
Net investment income (loss) -- (0.06) (0.05) 0.83 0.31 0.06
Net gains or (losses) on securities
(both realized and unrealized) 10.58 (3.31) 3.01 1.18 3.28 0.57
---------------------------------------------------------------------------------------
Total from investment operations 10.58 (3.37) 2.96 2.01 3.59 0.63
Less dividends and distributions
Dividends (from net investment income) -- -- -- (1.02) (0.04) --
Distributions in excess of net -- -- -- -- -- --
investment income
Distributions (from net realized gain) (0.78) (0.39) -- (5.12) (0.01) --
Distributions in excess of net
realized gains -- -- -- -- -- --
---------------------------------------------------------------------------------------
Total distributions (0.78) (0.39) -- (6.14) (0.05) --
---------------------------------------------------------------------------------------
Net asset value, end of period $ 19.00 $ 9.20 $ 12.96 $ 10.04 $ 14.17 $ 10.63
---------------------------------------------------------------------------------------
Total Return 119.53% (26.17%) 29.60% 15.25% 33.88% 6.30%
Net assets, end of period (in thousands $ 55,126 $ 60,494 $ 41,849$ 7,129 $ 23,749 $ 20,42
Average net assets for the period
(in thousands) $ 66,977 $ 73,057 $ 29,766 $ 9,825 $ 36,698 $ 19,230
Ratio of expenses to average net assets* 1.37% 1.31% 1.47% 1.59% 1.34% 1.91%
Ratio of net investment income (loss) to
average net assets* (1.06%) (0.99%) (0.88%) 1.84% 2.12% 1.62%
Portfolio turnover rate 31.75% 31.68% 44.57% 18.85% 155.72% 2.55%
The accompanying notes are an integral part of the financial statements
74
<PAGE>
Financial Highlights (Continued)
--------------------------------
For a share outstanding throughout each of the periods ended as indicated
- ----------------------------------------------------------------------------------
ICON Transportation
Fund
Year Ended Period Ended
Sept. 30, Sept. 30, Sept. 30,
1999 1998 1997(i)
---------------------------------------
Net asset value, beginning of period $ 9.45 $ 12.40 $ 10.00
---------------------------------------
Income from investment operations
Net investment income (loss) 0.01 0.01 --
Net gains or (losses) on securities
(both realized and unrealized) 1.63 (2.71) 2.40
---------------------------------------
Total from investment operations 1.64 (2.70) 2.40
Less dividends and distributions
Dividends (from net investment income) (0.02) (0.01) --
Distributions in excess of net -- -- --
investment income
Distributions (from net realized gain) (0.76) (0.24) --
Distributions in excess of net
realized gains -- -- --
---------------------------------------
Total distributions (0.78) (0.25) --
---------------------------------------
Net asset value, end of period $ 10.31 $ 9.45 $ 12.40
---------------------------------------
Total Return 16.89% (22.08%) 24.00%
Net assets, end of period (in thousands $ 21,004 $ 11,318 $ 22,531
Average net assets for the period
(in thousands) $ 24,387 $ 17,975 $ 19,459
Ratio of expenses to average net assets* 1.41% 1.41% 1.61%
Ratio of net investment income (loss) to
average net assets* 0.10% 0.08% (0.04%)
Portfolio turnover rate 47.97% 10.62% 15.97%
- ---------
* Annualized for periods less than a year.
a-m legends are at bottom of page 60
# Includes reimbursement from administrator for fees and expenses. If these
fees and expenses had not been reimbursed, the ratio of expenses to average
net assets would have been 2.10% and the ratio of net investment income to
average net assets would have been (0.79%).
+ Includes change in accounting estimate, see note 4. If this change had not
been made the ratio of expenses to average net assets would have been 0.84%
and the ratio of net investment income to average net assets would have
been 4.93%.
(beta) Includes change in accounting estimate, see note 4. Tf this change had
not been made the ratio of expenses to average net assets would have been
1.48% and the ratio of net investment income to average net assets would
have been 4.00%
The accompanying notes are an integral part of the financial statements
75
<PAGE>
Financial Highlights (Continued)
--------------------------------
For a share outstanding throughout each of the periods ended as indicated
- ------------------------------------------------------------------------------------------------------------------------------------
ICON Short-Term ICON Asia
Fixed Income Fund Region Fund
Year Ended Period Ended Year Ended Period Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1997(j) 1999 1998 1997(k)
------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 9.79 $ 10.03 $ 10.00 $ 6.09 $ 9.94 $ 10.00
Income from investment operations
Net investment income (loss) 0.43 0.76 0.47 (0.01) (0.04) (0.01)
Net gains or (losses) on securities
(both realized and unrealized) (0.12) (0.14) 0.03 4.79 (3.81) (0.05)
------------------------------------------------------------------------------------------
Total from investment operations 0.31 0.62 0.50 4.78 (3.85) (0.06)
Less dividends and distributions
Dividends (from net investment income) (0.65) (0.53) (0.47) -- -- --
Distributions in excess of net
investment income -- -- -- -- -- --
Distributions (from net realized gain) (0.30) (0.33) -- -- -- --
Distributions in excess of net
realized gains -- -- -- -- -- --
------------------------------------------------------------------------------------------
Total distributions (0.95) (0.86) (0.47) -- -- --
------------------------------------------------------------------------------------------
Net asset value, end of period $ 9.15 $ 9.79 $ 10.03 $ 10.87 $ 6.09 $ 9.94
------------------------------------------------------------------------------------------
Total Return 3.54% 6.55% 3.18% 78.49% (38.73%) (0.60%)
Net assets, end of period (in thousands) 5,111 $ 5,350 $ 81,382 $ 33,564 $ 26,730 $ 58,279$
Average net assets for the period
(in thousands) 4,658 $ 17,542 $ 128,897 $ 29,191 $ 45,361$ 45,191$
Ratio of expenses to average net assets* 1.06%(beta) 0.11%+ 1.10% 1.59% 1.65% 1.66%
Ratio of net investment income (loss) to
average net assets* 4.42%(beta) 5.66%+ 4.66% (0.57%) (0.45%) (0.23%)
Portfolio turnover rate 53.22% 163.75% 297.62% 62.82% 69.57% 0.00%
- ---------
* Annualized for periods less than a year.
a-m legends are at bottom of page 60
# Includes reimbursement from administrator for fees and expenses. If these
fees and expenses had not been reimbursed, the ratio of expenses to average
net assets would have been 2.10% and the ratio of net investment income to
average net assets would have been (0.79%).
+ Includes change in accounting estimate, see note 4. If this change had not
been made the ratio of expenses to average net assets would have been 0.84%
and the ratio of net investment income to average net assets would have
been 4.93%.
(beta) Includes change in accounting estimate, see note 4. Tf this change had
not been made the ratio of expenses to average net assets would have been
1.48% and the ratio of net investment income to average net assets would
have been 4.00%
The accompanying notes are an integral part of the financial statements
76
<PAGE>
Financial Highlights (Continued)
--------------------------------
For a share outstanding throughout each of the periods ended as indicated
- -----------------------------------------------------------------------------------------------------------------------------------
ICON N. Europe ICON S. Europe
Region Fund Region Fund
Year Ended Period Ended Year Ended Period Ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1997(l) 1999 1998 1997(m)
---------------------------------------------------------------------------------------
Net asset value, beginning of period $ 11.63 $ 11.06 $ 10.00 $ 11.87 $ 11.90 $ 10.00
Income from investment operations
Net investment income (loss) (0.05) (0.02) 0.07 0.02 (0.23) 0.10
Net gains or (losses) on securities
(both realized and unrealized) 1.51 0.79 0.99 1.06 0.93 1.80
---------------------------------------------------------------------------------------
Total from investment operations 1.46 0.77 1.06 1.08 0.70 1.90
Less dividends and distributions
Dividends (from net investment income) (0.17) (0.06) -- -- (0.07) --
Distributions in excess of net
investment income -- -- -- (0.03) -- --
Distributions (from net realized gain) (1.18) (0.14) -- (2.80) (0.66) --
Distributions in excess of net
realized gains -- -- -- -- -- --
---------------------------------------------------------------------------------------
Total distributions (1.35) (0.20) -- (2.83) (0.73) --
---------------------------------------------------------------------------------------
Net asset value, end of period $ 11.74 $ 11.63 $ 11.06 $ 10.12 $ 11.87 $ 11.90
---------------------------------------------------------------------------------------
Total Return 12.78% 7.00% 10.60% 6.41% 6.11% 19.00%
Net assets, end of period (in thousands) 23,971 $ 39,726 $ 49,947 $ 5,298 $ 9,452 $ 21,088
Average net assets for the period
(in thousands) 30,993 $ 49,406 $ 36,212 $ 8,107 $ 20,263 $ 15,055
Ratio of expenses to average net assets* 1.59% 1.54% 1.66% 1.81% 1.56%# 1.69%
Ratio of net investment income (loss) to
average net assets* 0.25% (0.41%) 1.34% (0.53%) (0.26%)# 1.92%
Portfolio turnover rate 50.36% 57.84% 13.89% 70.65% 113.55% 7.29%
- ----------
* Annualized for periods less than a year.
a-m legends are at bottom of page 60
# Includes reimbursement from administrator for fees and expenses. If these
fees and expenses had not been reimbursed, the ratio of expenses to average
net assets would have been 2.10% and the ratio of net investment income to
average net assets would have been (0.79%).
+ Includes change in accounting estimate, see note 4. If this change had not
been made the ratio of expenses to average net assets would have been 0.84%
and the ratio of net investment income to average net assets would have
been 4.93%.
(beta) Includes change in accounting estimate, see note 4. Tf this change had
not been made the ratio of expenses to average net assets would have been
1.48% and the ratio of net investment income to average net assets would
have been 4.00%
The accompanying notes are an integral part of the financial statements
77
</TABLE>
<PAGE>
An Explanation of the Financial Highlights
- ------------------------------------------
This schedule provides an analysis of the items that affected the Funds' net
asset value, on a per share basis. This schedule provides the total return,
distributions, assets in the Fund, expense ratios and portfolio turnover.
The first line is the beginning of period net asset value per share (NAV) and
the components of the current fiscal period's activity is shown in sections that
follow. The increase or (decrease) due to investment operations is first,
followed by gains or (losses), either realized or unrealized, then dividends and
distributions are subtracted to arrive at the NAV per share at the end of the
fiscal period.
Also included in this schedule are the Funds' expense ratios, or percentage of
net assets that was used to cover the operating expenses of the Fund during the
period. This is determined by dividing the total expenses incurred by the Fund
by the average net assets in the Fund during the year.
The next item on the schedule is the ratio of net investment income, which is
the net investment income earned from investment operations divided by the
average net assets of the Funds during the reporting period.
The next item is the portfolio turnover rate, which is a measure of the amount
of buying and selling activity in the Funds' portfolio. The turnover is affected
by many things including, market conditions, changes in the size of the Fund,
the types of Fund investments, and the investment style of the portfolio
manager. A 100% rate implies that an amount equal to the value of the entire
portfolio is turned over during the reporting period, a 50% rate means that an
amount equal to the value of half the portfolio is traded during the reporting
period.
78
<PAGE>
Notes to Financial Statements
-----------------------------
September 30, 1999
- ------------------
1. Organization and Significant Accounting Policies.
- ----------------------------------------------------
The ICON Basic Materials Fund (Basic Materials Fund), ICON Consumer Cyclicals
Fund (Consumer Cyclicals Fund), ICON Energy Fund (Energy Fund), ICON Financial
Services Fund, (Financial Services Fund) ICON Healthcare Fund (Healthcare Fund),
ICON Leisure Fund (Leisure Fund), ICON Technology Fund (Technology Fund), ICON
Telecommunication & Utilities Fund (Telecommunication and Utilities Fund), ICON
Transportation Fund (Transportation Fund)-(collectively, the Domestic Funds),
and ICON North Europe Region Fund (North Europe Fund), ICON South Europe Region
Fund (South Europe Fund) and ICON Asia Region Fund (Asia Fund) (collectively,
the International Funds) and ICON Short-Term Fixed Income Fund (Short-Term Fixed
Income Fund) are series funds (collectively, the Funds) which are part of the
ICON Funds (the Trust), a Massachusetts business trust, which is registered
under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end, non-diversified management investment company. The Trust has sixteen
funds (of which twelve are currently in operation) which invest primarily in
securities of companies whose principal business activities fall within specific
industries or regions, and one short-term fixed income fund which invests
primarily in short-term U.S. Treasury and U.S. Government Agency instruments.
Each fund is authorized to issue an unlimited number of no par shares. The
investment objective of the Domestic and International Funds is to provide
long-term capital appreciation. The investment objective of the Short-Term Fixed
Income Fund is to attain high current income consistent with preservation of
capital.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make certain estimates and
assumptions that affect the reported amounts of assets and liabilities,
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 these estimates.
Investment Valuation.
- ---------------------
The Funds' securities and other assets are valued at the close of the regular
trading session of the New York Stock Exchange (the "Exchange") (normally 4:00
p.m. New York time) each day the Exchange is open. The Funds' securities and
other assets are valued as follows: securities listed or traded primarily on
foreign exchanges, national exchanges and the Nasdaq Stock market are valued at
the last sale price as of the close of the Exchange, or, if such a price is
lacking for the trading period immediately preceding the time of determination,
such securities are valued at the last bid price. Securities that are traded in
the over-the-counter market are valued at the last quoted sales price or if such
a sales price is lacking a last sales price a security is valued at it's last
bid price. The market value of individual securities held by the Funds are
determined by using pricing services that provide market prices to other mutual
funds or, as needed, by obtaining market quotations from independent
broker/dealers. Securities and assets for which quotations are not readily
available are valued at fair values determined in good faith pursuant to
consistently applied procedures established by the trustees. Short-term
securities including demand notes with remaining maturities of sixty days or
less for which quotations are not readily available are valued at amortized cost
or original cost plus accrued interest, both of which approximate market value.
Repurchase Agreements.
- ----------------------
Repurchase agreements, if held by the Funds are fully collateralized by U.S.
Government securities and such collateral is in the possession of the Funds'
custodian. The collateral is evaluated daily to ensure its market value exceeds
the current market value of the repurchase agreements including accrued
interest. In the event of default on the obligation to repurchase, the Funds
have the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. In the event of default or bankruptcy by the
other party to the agreement, realization and/or retention of the collateral or
proceeds may be subject to legal proceedings.
79
<PAGE>
Notes to Financial Statements (Continued)
-----------------------------------------
Foreign Currency Translation.
- -----------------------------
The accounting records of the Funds are maintained in U.S. dollars. Investment
securities and other assets and liabilities denominated in a foreign currency
are translated into U.S. dollars at the prevailing rates of exchange at period
end. Income and expenses are translated into U.S. dollars at the prevailing
exchange rate on the respective dates of the transactions. Purchases and sales
of securities are translated into U.S. dollars at the contractual currency
exchange rates established at the time of each trade. Net realized gains and
losses on foreign currency transactions represent disposition of foreign
currencies, and the difference between the amount of net investment income
accrued and the U.S. dollar amount actually received.
Income Taxes.
- -------------
The Funds intend to qualify as regulated investment companies under Subchapter M
of the Internal Revenue Code and, accordingly, the Funds will not be subject to
federal and state income taxes, or federal excise taxes to the extent that they
intend to make sufficient distributions of net investment income and net
realized capital gain.
Dividends received by shareholders of the Funds which are derived from foreign
source income and foreign taxes paid by the Funds are to be treated, to the
extent allowable under the Code, as if received and paid by the shareholders of
the Funds.
Dividends paid by the Funds from net investment income and distributions of net
realized short-term gains are for federal income tax purposes, taxable as
ordinary income to shareholders.
Dividends and distributions to shareholders are recorded by the Funds on the
ex-dividend/distribution date. The Funds distribute net realized capital gains,
if any, to shareholders at least annually, if not offset by capital loss
carryovers. Income distributions and capital gain distributions are determined
in accordance with income tax regulations which may differ from generally
accepted accounting principles.
Investment Income.
- ------------------
Dividend income is recorded on the ex-dividend date. Non-cash dividends included
in dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Certain dividends
from foreign securities will be recorded as soon as the Funds are informed of
the dividend if such information is obtained subsequent to the ex-dividend date.
Expenses.
- ---------
Most expenses of the Funds can be directly attributed to each specific fund.
Expenses which cannot be directly attributed are apportioned between all Funds
based upon relative net assets.
Deferred Organizational Costs.
- ------------------------------
Organizational costs are being amortized over five years by the Funds. The
amortization started once the Funds had assets and began investment operations.
Investment Transactions.
- ------------------------
Security transactions are accounted for as of trade date. Gains and losses on
securities sold are determined on the basis of identified cost.
The Funds may have elements of risk due to concentrated investments in specific
industries or in foreign issuers located in a specific country. Such
concentrations may subject the Funds to additional risks resulting from future
political or economic conditions and/or possible impositions of adverse foreign
governmental laws or currency exchange restrictions.
80
<PAGE>
Notes to Financial Statements (Continued)
-----------------------------------------
2. Fees and Other Transactions with Affiliates.
- -----------------------------------------------
Investment Advisory Fees
- ------------------------
Domestic and International Funds
- --------------------------------
As the Funds' investment advisor, Meridian Investment Management Corporation
(MIMCO) receives a monthly fee that is computed daily at an annual rate of 1.00%
of the Domestic and International Funds' average net assets.
Short-Term Fixed Income Fund
- ----------------------------
As the Fund's investment advisor, MIMCO receives a monthly fee that is computed
daily at an annual rate of .65% of the Fund's average net assets.
Transfer Agent, Custody and Accounting Fees.
- --------------------------------------------
Firstar Mutual Fund Services, LLC and Firstar Bank of Milwaukee (Firstar)
provides custodial services, transfer agent services and fund accounting for the
Funds. The Funds pay a fee at an annual rate of 0.15% on the Trust's first $500
million of average daily net assets, 0.13% on the next $500 million of average
daily net assets, and 0.12% on the balance of average daily net assets. The
Funds also pay for various out-of- pocket costs incurred by Firstar that are
estimated to be 0.02% of the average daily net assets.
On behalf of the International Funds, Firstar has entered into an agreement with
Chase Manhattan Bank (Chase) to provide international custodial services. The
Funds pay an annual rate of 0.112% of average daily net assets plus a per trade
transaction cost for these custodial services.
Administrative Services
- -----------------------
The Funds have entered into an administrative services agreement with MIMCO.
This agreement provides for an annual fee of 0.05% on the Funds' first $500
million of average daily net assets and 0.04% on average daily net assets in
excess of $500 million.
Related parties
- ---------------
Certain officers and directors of MIMCO are also officers and trustees of the
Funds.
3. Federal Income Tax.
- ----------------------
Net investment income distributions and capital gain distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are due to differing
treatments for items such as deferral of wash sales, foreign currency
transactions, net operating losses, capital loss carry forwards and deemed
distributions on redemptions.
Net capital loss carryovers expire in 2006 and 2007. To the extent future
capital gains are offset by capital loss carryovers, such gains will not be
distributed to shareholders.
Permanent items identified in the period ended September 30, 1999, have been
reclassified among components of net assets as follows:
81
<PAGE>
Notes to Financial Statements (continued)
-----------------------------------------
3. Federal Income Tax. (continued)
- ----------------------------------
Fund Undistributed Undistributed
Net Investment Net Realized Paid In
Income Gains & Losses Capital
- --------------------------------------------------------------------------------
ICON Basic Materials Fund $ 4,904 $ -- $ (4,904)
ICON Consumer Cyclicals Fund $ 269,360 $ -- $ (269,360)
ICON Energy Fund $ 36,056 $ -- $ (36,056)
ICON Financial Services Fund $ 3,931 $ (3,931) $ --
ICON Healthcare Fund $ 243,650 $ (5,412,961) $ 5,169,311
ICON Leisure Fund $ 98,822 $ (5,980,094) $ 5,881,272
ICON Technology Fund $ 709,445 $(10,518,704) $ 9,809,259
ICON Telecommunication and
Utilities Fund $ -- $ (8,379,567) $ 8,379,567
ICON Transportation Fund $ 9,066 $ (9,066) $ --
ICON Short-Term
Fixed Income Fund $ -- $ -- $ --
ICON Asia Region Fund $ 195,573 $ 177,046 $ (372,619)
ICON North Europe Region Fund $ (199,501) $ (3,019,532) $ 3,219,033
ICON South Europe Region Fund $ 79,406 $ (6,766,811) $ 6,687,405
The aggregate cost of investments and the composition of unrealized appreciation
and depreciation of investment securities for federal income tax purposes as of
September 30, 1999, are as follows:
<TABLE>
<CAPTION>
Fund Federal Tax Cost Unrealized Unrealized Net Appreciation Net Capital Post October
Appreciation (Depreciation) (Depreciation) Loss Carryovers Loss Deferral
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ICON Basic Materials Fund $ 26,572,561 $ 2,176,172 $ (2,355,904) $ (179,732) $ 9,416,109 $ 2,119,955
ICON Consumer Cyclicals Fund $ 54,988,926 $ 8,046,170 $ (8,606,244) $ (560,074) $ 557,945 $ 5,936,026
ICON Energy Fund $ 20,904,866 $ 1,379,410 $ (3,045,226) $ (1,665,816) $ 1,605,236 $ 2,996,701
ICON Financial Services Fund $ 6,261,462 $ 425,271 $ (1,197,272) $ (772,001) $ -- $ --
ICON Healthcare Fund $ 27,382,342 $ 3,719,884 $ (6,517,701) $ (2,797,817) $ -- $ --
ICON Leisure Fund $ 32,748,116 $ 4,989,110 $ (6,166,058) $ (1,176,948) $ -- $ --
ICON Technology Fund $ 36,926,227 $ 19,103,635 $ (807,292) $ 18,296,343 $ -- $ --
ICON Telecommunication and
Utilities Fund $ 6,538,651 $ 1,029,625 $ (433,051) $ 596,574 $ -- $ --
ICON Transportation Fund $ 22,214,726 $ 1,442,056 $ (2,615,020) $ (1,172,964) $ -- $ --
ICON Short-Term
Fixed Income Fund $ 5,153,790 $ -- $ (14,495) $ (14,495) $ -- $ --
ICON Asia Region Fund $ 28,681,787 $ 5,500,114 $ (251,453) $ 5,248,661 $ 10,241,800 $ 1,900,493
ICON North Europe Region Fund $ 24,478,333 $ 2,362,360 $ (1,030,617) $ 1,331,743 $ -- $ 207,970
ICON South Europe Region Fund $ 5,880,412 $ 203,797 $ (593,679) $ (389,882) $ 39,533 $ 608,432
</TABLE>
4. Accounting Estimates
- -----------------------
The ICON Short-Term Fixed Income Fund had an estimated net overaccrual of
expenses of approximately $157,000 as of September 30, 1997 which was not
material to the financial statements as of that date. However, due to the
substantial decrease in the net assets of the Fund during the year ended
September 30, 1998 the net estimated overaccrual of $127,000 became material to
the financial statements of the Fund. The Fund has determined that it received a
net benefit due to this estimated overaccrual and will identify and reimburse
shareholders who provided this benefit. The amount of this benefit is identified
as due to redeemed shareholders in the Statement of Assets and Liabilities. This
has been accounted for as a change in accounting estimate and adjusted for as of
September 30, 1998.
During the year ended September 30, 1999, as the shareholders who provided the
benefit were being identified, and as a result of additional information, a
change in the estimate reduced the amount to $57,539. This additional change was
adjusted for as of September 30, 1999.
82
<PAGE>
Report of Independent Accountants
---------------------------------
To the Shareholders and Board of Trustees of ICON Funds
- --------------------------------------------------------------------------------
In our opinion, the accompanying statements of assets and liabilities, including
the schedules of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of each of the portfolios constituting
ICON Funds (the "Funds") at September 30, 1999, the results of each of their
operations for the year then ended, the changes in each of their net assets for
each of the periods indicated and the financial highlights for each of the
periods indicated, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Funds' management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
September 30, 1999 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
/s/ PricewaterhouseCoopers LLP
- ------------------------------
PricewaterhouseCoopers LLP
Denver, Colorado
November 5, 1999
83
<PAGE>
Federal Income Tax Information (Unaudited)
For the fiscal year ended September 30, 1999, the following fiscal year
distributions were considered long-term gains;
ICON Consumer Cyclicals Fund $ 369,566
ICON Financial Services Fund $ 564,409
ICON Healthcare Fund $ 1,861,795
ICON Leisure Fund $ 4,243,620
ICON Technology Fund $ 13,951,125
ICON Transportation Fund $ 485,342
ICON North Europe Region Fund $ 1,546,478
ICON South Europe Region Fund $ 120,912
84
