ICON FUNDS, N-30D/A, 1999-01-15

ICON FUNDS
N-30D/A, 1999-01-15

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Letter to Shareholders & Advisors
Dear ICON Funds Shareholders and Advisors:
For those invested in domestic and international markets, the past year and a
half proved unusual in many respects. The impact on most money managers,
including the ICON Funds' Advisor, Meridian Investment Management Corporation,
was strong. The factors involved were four years and more in the making. In
1994, the Federal Reserve tightened monetary policy, sending markets sideways. A
bull market emerged in 1995. Momentum then took over, driving prices of favored
stocks even higher, despite the fact that they were over priced relative to fair
value. This was particularly true for a number of large-cap stocks: they
continued their climb while under-priced stocks with greater intrinsic value
languished, totally out of favor with investors. This period reached its final
phase in 1998. Value-Based Decisions Given the value orientation used to guide
ICON holdings, this situation proved particularly problematic in certain
investment sectors. Technology stands out as the most extreme example, but
Leisure and Healthcare also experienced similar, unsustainable leadership.
Unwilling to chase the few "hot" and over-priced large-cap issues, your Funds'
Advisor took the more cautious route. Issues priced with the largest discount to
fair value were purchased instead. Although historic performance and analysis
have shown this value approach delivers superior results over the long run, it
did not do so during these unusual times. The narrow leadership by a few
large-cap, over-priced issues was less prevalent in other sectors and regions.
There, our bargain-hunting approach was not only effective, but impressive.
Late-Summer Shifts Late-summer 1998 ushered in one of the harshest experiences
of recent markets. A global decline hit country markets, sectors and individual
stocks in a manner best described as "indiscriminate." The downturn did not hit
the most over-priced issues to a proportionate degree as would have been
anticipated, but rather affected virtually all stocks equally, regardless of
fair value. The impact on stocks with exposure to Russia and Asia was
noteworthy, however. So, not only did under-priced stocks not participate in the
market advance earlier in the year--in clear contrast to historic norms--but
they also dropped in equal proportion during August, a defiance of their normal
defensive character. Best Buying Windows The signals from our quantitative
system were very clear following the August global decline. In fact, the Advisor
anticipates that, in retrospect, September 1998 will prove to be one of the best
buying windows in recent history. This expectation is based on valuation
estimates of approximately 1,700 U.S. stocks. During one week in September, the
average value-to-price ratio for this group hit a high of 1.38, indicating the
market as a whole was priced 38 percent below fair value. That was the second
highest reading ever recorded by the Advisor, exceeded only by a value-to-price
ratio of 1.40 during August of 1982, the eve of the great bull market. This
recent ratio made stocks even slightly more attractive than at the market bottom
in October 1990 following the invasion of Kuwait. At that time, an average
price-to-value ratio of 1.34 was observed. In addition to value, the sentiment
and news typical of a market bottom were seen during September. There were
worries that the recession in Asia and the currency crisis in Russia would
damage European banks and economies. Then came fears that the decline would find
its way to the Western Hemisphere, reaching Latin America first, but eventually
engulfing the U.S. As stock prices fell, banks and hedge funds faced margin
calls from speculative activity and, in turn, reported severe losses. Investors
became impatient with the gridlocked Japanese legislature's failure to resolve
its banking situation. Further, just when U.S. leadership was needed most to
bolster the global economy, the possibility of presidential impeachment added
uncertainty. That was as much bad news as one month could contain. But such a
bleak situation is the hallmark of market bottoms. Significant Patterns The
parallels between market performance in mid-summer 1990 and mid-summer 1998
merit further discussion. The graph below depicts the closing values for the New
York Stock Exchange Composite beginning June 26, 1990 and June 29, 1998. The
patterns are so similar the lines are difficult to distinguish. [insert graph]
Similar to 1998, news and sentiment in mid-October of 1990 was also very
negative. Congress was virtually gridlocked debating the budget-deficit
reduction package. The savings and loan crisis was at a peak. And war seemed
imminent. Still, the market started upward during the height of uncertainty. A
brief pause in the market in January 1991 ended the very day the U.S. launched
missiles and began bombing. Those who waited to see the results of the war
missed the rally. In parallel, the sell-off in August 1998 was clearly an
overreaction. Investors feared the worst and allowed stocks to fall well below
their intrinsic values. There were similar indicators and a similar situation,
just eight years earlier. The rally into 1991 was simply driven by stocks
returning to fair value. We fully expect history to show that the August 1998
decline was also a fear-based overreaction. We anticipate there will be upward
pressure on stock prices going into 1999 and that fair value will be approached.
Looking Forward
As you are aware, cash in the ICON Funds is kept to the minimal level necessary
only to cover normal redemptions. While not using cash inside the Funds for
either market timing or defensive purposes made them sensitive to August's
market downturn, it also proved positive: we were able to participate in the
upside rebound. Our focus during September and October was on investing the
Funds in industries and countries expected that are expected to be leaders over
the next year. During the August-October volatility, there was no attempt to
trade short-term moves. Our attention was solely on the future, for valuation
readings were signaling the second-best buying opportunity in two decades. We
expect that emphasis will be rewarded. Very truly yours,

Craig T. Callahan, D.B.A.
Trustee, Chief Investment Officer of the Advisor

Sidebars

On Graham & Growth
The valuation model used to select holdings for the ICON Funds has its roots in
the work of Benjamin Graham, the father of securities analysis. Investor,
advisor, author and educator, he began managing money in the 1920s and was the
first to propose the concept of value investing by purchasing stocks on sale. In
1962, he published an equation for valuing common stocks; in 1974, he updated
it.
Warren Buffet was among his students at Columbia University.
The ICON Funds' Advisor has modified Graham's equation to accommodate volatility
and growth conditions. In managing the ICON Funds, value is used to identify
stocks and industries that are under-priced relative to fair value. Patience is
required to hold these positions until fair value is recognized by the market.

(Craig's initials)

o o o

Buying Bargains
The Graham-based approach used to manage the ICON Funds has certain biases and
strengths. It is particularly suited to identifying market bottoms and buying
bargains available in those turbulent times. It relies primarily on quantitative
input, eliminating emotions and opinions. At market bottoms, it is good at
recognizing new leadership and emerging themes. The responsiveness of the Funds
in October and November 1998 is brief evidence of those traits. Conversely, the
approach faces difficulty in finding new opportunities in markets similar to the
last 18 months, when momentum drove only a very few stocks higher.

o o o

Are Major Theme Changes Ahead?
The characteristics surrounding the August 1998 decline and the following
month's turbulence seem to have signaled a bottom and major theme change. If
such is the case, the next few years could be very interesting. Investment
approaches and techniques that worked well over the last 18 months may not prove
so productive in the near term. Stock-selection methods that yielded good
results in late-1997 and early-1998 may find favored stocks to be sluggish.
Industries that rose to the heights of mid-1998 may be lackluster looking
forward. And if the leadership of October-November carries through, small- and
mid-cap issues may gain favor over large-caps. Such extreme reversals are normal
for the stock market. The ICON Funds' value-based, modified-Graham approach is
ideally suited to capture and participate in theme changes. By offering a
complete menu of sector funds, it allows investors to participate in changing
market themes by tilting portfolios toward favored sectors. (Craig's initials)

o o o

Recalling Kuwait
Many newer investors were taken aback by the market volatility of late last
summer. Veterans, however, had seen it all before. And while they didn't like
it, they sensed what was ahead. Negativity was high in mid-October 1990, but the
market began to move. It continued its climb as rumors of war grew more intense,
pausing only momentarily as Operation Desert Shield became Operation Desert
Storm. Investors at the time were split. Some saw opportunity, acted and were
rewarded. Others waited and watched the rally pass them by.

(Craig's initials)

o o o

Year 2000 Compliance Policy
Many computer systems in use today cannot properly process date-related
information from and after January 1, 2000. Failure of any computer system
employed by the Funds or the Funds' major service providers could have a
negative impact on Fund operations and shareholder services. As major service
providers, the Funds' adviser, custodian, transfer agent and fund accounting
service have taken inventory of all hardware, software, networks and processing
platforms, and customer and vendor interdependencies. The adviser has requested
that significant vendors assess and advise with respect to Year 2000 issues in
order to determine the extent to which fund operations would be vulnerable to
third party failure to remedy their own Year 2000 issues. As a result of these
actions, the Funds and the Funds' adviser have no reason to believe that there
will be a negative impact on Fund operations as a result of the Year 2000
problem.

o o o

www.iconfunds.com
The latest performance figures for ICON Funds can now be found on the web.
ICON's website also details portfolio holdings and a wealth of other
information, including our 115-industry and 31-country database. Visit
www.iconfunds.com and you'll also find recent Fund press releases and other
articles of interest. Need a prospectus? It's as simple as downloading.

ICON FUNDS

Management Discussion & Analysis

Basic Materials

Performance
ICON Basic Materials Fund (The "Fund") opened on May 5, 1997. The Fund's total
return since inception through 9/30/98 was (31.81%). The Standard & Poor's Basic
Materials Index return was (5.87%) for the same period. The Fund's total return
from 10/1/97 through 9/30/98 was (37.45%). The Standard & Poor's Basic Materials
Index return from 10/1/97 through 9/30/98 was (17.35%). The Fund suffered from
investor concerns regarding both a slowing domestic economy and turmoil abroad.
The Basic Materials sector includes commodity related industries such as
Gold/Metals Mining, and Steel. Last October, when Asian economies faltered,
investors sold off commodity related industries on fears that demand for
commodities would slump. At the beginning of 1998, some of those fears subsided,
and these stocks rallied. As the year wore on, however, investors grew anxious
about other international markets besides Asia and about the possibility of a
United States recession. Stocks in the Basic Materials sector suffered once
again. By the end of the third quarter, investors were fearful of any market
risk and fled into U.S. Treasuries. The yield on the 30-year bond fell below 5%
for the first time ever. This anxious environment created a surge in demand for
Gold, sending gold prices above $300 per ounce and Gold stocks up 50-70% off
their lows. The Fund has benefited from this resurgence in Gold stocks. The Fund
rose more than 24% in September while the S&P 500 gained just over 6%. Industry
Highlights The Fund's largest industry holdings are Gold/Precious Metals,
Construction, and Metals Mining. The Gold/Precious Metals industry includes
companies such as Barrick Gold, Newmont Mining, Battle Mountain and Homestake
Mining. The largest factor affecting the Gold industry has been on the supply
side, where a number of central banks have announced the sale of gold in order
to buy other financial assets that earn a higher return. The resulting
supply/demand imbalance was thrown further off kilter by the Asian slowdown,
which reduced demand. At this point, most of the bad news regarding this
industry appears to be priced into the stocks. The Advisor's valuation model,
which is based on earnings, long term growth rates, interest rates and a risk
factor, shows good values for Gold/Precious Metal companies. The Construction
industry is comprised of companies such as Calmat, Martin Marietta Materials and
Southdown. These companies produce cement and concrete that are used in building
projects. Strong economic activity in the United States has benefited these
companies to date. In addition, public spending on roads, bridges and mass
transit is likely to remain strong in the future. Congress recently passed the
Transportation Efficiency Act, which provides for $168 billion in funding for
transportation projects. While demand is strong, supply is constrained by
environmental regulations that create a barrier to the construction of new
production facilities. Also, tariffs limit the amount of imports. So the healthy
conditions for the Construction industry are unlikely to change any time soon.
The Metals Mining industry includes companies like Freeport-McMoran Copper,
Cyprus Amax, Phelps Dodge and Asarco. In addition to some gold production, these
companies produce other metals such as copper, silver and nickel. The industry
has suffered the same commodity-related woes as the Gold/Precious Metals group.
Here, too, the worst seems to be behind these stocks. The Advisor's valuation
model gives good value readings across the industry. The two other industries in
the Fund are Aluminum and Steel. With their commodity characteristics, these
industries have performed in line with the other industries in the Fund. In
addition, one of the Fund's Aluminum holdings, Alumax, was acquired by Aluminum
Company of America at a healthy premium. Current Outlook The Advisor maintains a
positive outlook for the ICON Basic Materials Fund. Investor fears about a
global recession are most likely overblown. While a good deal of bad news
surrounds commodity-related industries, most of that news appears to be priced
into the stocks. These industries are not highly correlated with the broader
market and so provide the benefit of diversification. The Fund holds industries
that demonstrate good value and the potential for strong relative performance to
the market.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 99.9% 90.9%
Top 10 Equity (% of Assets) 50.5% 65.7%
Number of Stocks 27 26
Cash & Cash Equivalents 0.1% 9.2%

Top 10 Equity Holdings September 30, 1998 September 30, 1997
Martin Marietta Materials 5.4% -
Battle Mountain Gold 5.3% 9.6%
Stillwater Mining Co. 5.2% 3.9%
Placer Dome Inc. 5.1% 8.2%
Vulcan Materials 5.1% -
Barrick Gold Corporation 5.0% 12.0%
Hecla Mining Co. 5.0% 4.0%
Cyprus Amax Mineral Co. 4.9% -
Homestake Mining 4.8% 8.4%
Phelps Dodge 4.7% -
Top Industries September 30, 1998 September 30, 1997
Gold/Precious Metals 68.2% 73.9%
Construction 22.3% -
Steel 5.4% 8.7%
Metals Fabricators 4.0% 8.3%

Schedule of Investments
September 30, 1998

Shares or Principal Amount Market Value
Common Stocks 99.9%
Gold/Precious Metals Mining 68.2%
29,800 Alcan Aluminum LTD $ 698,437
11,100 Aluminum Co. Of America 788,100
41,600 Asarco Inc. 795,600
43,450 Barrick Gold Corp. 869,000
151,500 Battle Mountain Gold 918,469
64,700 Cyprus Amax Mineral
Company 857,275
60,200 Freeport-McMoran Copper
Class B 714,875
171,900 Hecla Mining Co.a 870,244
68,500 Homestake Mining Co. 830,562
75,900 INCO LTD 777,975
17,400 Newmont Gold Co. 444,787
26,700 Newmont Mining Corp. 647,475
15,700 Phelps Dodge 819,344
64,300 Placer Dome Inc. 888,144
28,400 Stillwater Mining Co.a 896,375
Total Gold/Precious Metals Mining 11,816,662
Steel 5.4%
4,500 Carpenter Technology 164,531
4,500 Nucor Corp. 182,813
7,100 Quanex Corp. 140,669
20,800 Steel Technologies 150,800
5,200 Texas Industries Inc. 130,650
13,600 Worthington Industries, Inc. 170,000
Total Steel 939,463
Construction 22.3%
41,400 Calmat Co. 716,737
12,000 Lone Star Industries 717,000
21,500 Martin Marietta Materials 928,531
13,400 Southdown Inc. 603,000
8,800 Vulcan Materials Co. 890,450
Total Construction 3,855,718

Shares or Principal Amount Market Value
Common Stocks - continued
Metal Fabricators 4.0%
13,800 Reynolds Metals 701,212
Total Metal Fabricators 701,212
Total Common Stocks
(Cost $20,892,350) 17,313,055
Short-Term Commercial Notes 0.1%
$21,422 American Family Demand Note
4.96% 7/26/99 21,422
Total Short-Term Commercial Notes
(Cost $21,422) 21,422
Total Investments 100%
(Cost $20,913,772) 17,334,477
Other Liabilities less Assets 0.0% (16,534)
Net Assets 100.0% $ 17,317,943
The accompanying notes are an integral part of the financial statements.
a non-income producing security

Consumer Cyclicals

Performance
ICON Consumer Cyclicals Fund (The "Fund") opened on July 9, 1997. The Fund's
total return since inception through 9/30/98 was (21.30%). The Standard & Poor's
1500 Index return was 12.62% for the same period. The Fund's total return from
10/1/97 through 9/30/98 was (28.26%). The Standard & Poor's 1500 Index return
from 10/1/97 through 9/30/98 was 6.27%. The Advisor currently uses the S&P 1500
as a benchmark for the ICON Consumer Cyclicals Fund due to the lack of a more
appropriate benchmark. The S&P 1500 has a large-cap bias and is invested in a
large number of companies in which the Consumer Cyclicals Fund cannot invest.
However, an independent index does not exist for stocks that are eligible for
investment by the Consumer Cyclicals Fund. The industries in the Consumer
Cyclicals Fund suffered from investor concerns regarding both a slowing domestic
economy and turmoil abroad. Last October, when Asian economies faltered,
investors retreated from industries with heavy Asian exposure. Early in 1998,
some of those fears subsided and stocks rallied. As the year wore on, however,
investors grew anxious about other international markets besides Asia. By the
end of the third quarter, investors grew fearful of any sort of risk and fled
into U.S. Treasuries. The yield on the 30-year U.S. bond fell below 5% for the
first time ever. The Consumer Cyclicals Fund is composed primarily of small and
mid-cap industries. Examples are Services (Advertising and Marketing) and Retail
(Specialty) in which the largest companies are approximately $6-7 billion in
market capitalization and the smaller companies are below $1 billion. As
investors fled the risks of international markets, they also fled the perceived
risks of the small and mid-cap stocks. Whether due to a desire for liquidity or
fear that a recession would harm small companies more than large companies,
investors drove down prices for small and mid-cap stocks 30-50% off their
52-week highs. The Advisor believes value, not liquidity, will drive markets in
the long term. Through most of the year, the blue chip companies that dominate
the S&P indexes avoided the sell-off and performed much better than small and
mid-cap stocks. But by the end of August and into September, even the blue chips
were dropping. Industry Highlights The Fund's three largest industry holdings
are Retail (Specialty), Services (Advertising and Marketing) and Retail
(Building Supplies). The Retail (Specialty) industry includes office products
companies, including Staples, Office Depot, and Officemax. The industry also
contains auto repair companies such as AutoZone and Pep Boys-Manny, Moe and
Jack. As fears of a recession have developed, these stocks have fallen in price.
Yet any weakness in earnings caused by a recession should be short-lived, and
anything less than a recession will allow these companies to post solid
earnings. The Advisor's valuation model, which takes into account earnings, long
term growth rates, interest rates, and a risk measure, shows exceptional value
across this industry. The Services (Advertising and Marketing) industry includes
companies such as Omnicom, Interpublic, the Gartner Group, and Catalina
Marketing. This industry has undergone some consolidation, as companies seek to
broaden both their client base and the types of services they offer. In addition
to advertising, they are looking to offer services like public relations and
consulting. The larger companies have operations around the world and thus are
buffered from the fortunes of any particular economy. In the third quarter, as
investors grew fearful of a worldwide slowdown, even these large, diversified
Advertising and Marketing companies suffered price declines. The Advisor
continues to see good value in this industry. The Retail (Building Supplies)
industry includes Home Depot, Lowes, Eagle Hardware, Fastenal, Sherwin Williams,
and Hughes. The last few years have seen a change in the competitive landscape
as companies like Hechinger and Grossman's have closed their doors. Since
mid-1997, the remaining members of this industry have prospered as both the new
home market and the resale market have been extremely strong. The low interest
rate environment continues to bode well for this industry. But, as with the
other cyclical industries, investors have driven these stock prices down on
fears of a recession. The sell-off provides an opportunity to buy these quality
companies at good prices. Current Outlook The Advisor is bullish on many
industries within the Consumer Cyclicals sector. Investor fears about a global
recession are likely overblown, and the new-found awareness that equities go
down as well as up provides a good buying opportunity. Many of the industries in
the Fund will do well in a slow and stable growth environment. The Advisor holds
industries that demonstrate good value and have the potential for strong
relative performance to the market.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 98.7% 96.7%
Top 10 Equity (% of Assets) 33.4% 31.2%
Number of Stocks 47 41
Cash & Cash Equivalents 0.0% 3.4%
Top 10 Equity Holdings September 30, 1998 September 30, 1997
Nike Class B 4.6% -
Eagle Hardware & Garden 3.8% -
Home Depot 3.4% -
Hughes Supply 3.3% -
Acxiom Corp. 3.3% -
Catalina Marketing 3.2% -
Wolverine World Wide 3.1% -
Lowes Companies 2.9% -
Interpublic GRD Co. 2.9% -
Reebok International LTD. 2.9% -
Top Industries September 30, 1998 September 30, 1997
Services (Advertising and Marketing) 19.6% -
Retail (Building Supplies) 17.9% -
Retail (Specialty) 17.8% 24.0%
Specialty Printing 12.7% -
Footwear 12.6% -

Schedule of Investments
September 30, 1998

Shares Market Value
Common Stocks 98.7%
Specialty Printing 12.6%
35,000 Banta Corp. $ 953,750
49,600 Bowne & Co. 840,100
18,000 Consolidated Graphicsa 684,000
29,000 Deluxe Corp. 824,687
23,100 Donnelley RR & Sons 812,831
27,300 Valassis Communication 1,092,000
30,400 World Color Press 942,400
Total Specialty Printing 6,149,768
Retail (Home Shopping) 6.4%
12,500 CDW Computer Centers Inc.a665,625
25,800 Fingerhut Companies Inc. 283,800
43,400 Global Directmail Corp.a 545,213
16,200 Lands End Inc. 299,700
8,213 Metris Companies Inc. 382,952
65,100 Micro Warehouse Inc.a 980,569
Total Retail (Home Shopping) 3,157,859
Retail (Specialty) 17.8%
47,700 Autozone Inc.a 1,174,613
73,500 Claire's Stores Inc. 1,323,000
82,300 Heilig-Meyers Co. 591,531
44,800 Office Depota 1,005,200
82,400 OfficeMax Inc.a 808,550
71,100 Pep Boys-Manny Moe
& Jack 950,962
90,700 Sports Authority Inc.a 691,587
47,500 Staples Inc.a 1,395,312
47,700 Toys R Us Inc.a 772,144
Total Retail (Specialty) 8,712,899
Retail (Specialty Apparel) 9.4%
45,200 Burlington Coat Factory 666,700
17,700 GAP Inc. 933,675
35,600 The Limited Inc. 780,975
35,000 Mens Wearhouse Inc.a 603,750
46,200 TJX CosInc. 822,938
44,000 Talbots Inc. 786,500
Total Retail (Specialty Apparel) 4,594,538
Services (Advertising/Marketing) 19.6%
65,000 Acxiom Corp.a 1,612,813
57,000 ADVO Inc. 1,392,937
33,000 Catalina Marketing Corp.a 1,551,000
53,000 Gartner Group Inc. Class Aa 1,106,375
26,000 Interpublic GRP Co. Inc. 1,402,375
29,600 Omnicom Group 1,332,000
55,000 True North Communication 1,220,313
Total Retail (Advertising/Marketing) 9,617,813

Shares Market Value
Common Stocks - continued
Retail (Building Supplies) 17.9%
85,000 Eagle Hardware & Gardena $ 1,843,438
40,000 Fastenal 1,000,000
42,000 Home Depot 1,659,000
56,000 Hughes Supply Inc. 1,596,000
45,000 Lowes Companies 1,431,562
58,000 Sherwin Williams 1,254,250
Total Retail (Building Supplies) 8,784,250
Housewares 2.3%
13,900 Newell Companies 640,269
20,900 Rubbermaid Inc. 500,294
Total Housewares 1,140,563
Footwear 12.7%
61,300 Nike Class B 2,256,606
111,900 Nine West Group, Inc.a 1,070,044
104,300 Reebok International LTD 1,414,569
137,800 Wolverine World Wide 1,498,575
Total Footwear 6,239,794
Total Common Stocks
(Cost $68,154,307) 48,397,484
Total Investments 98.7%
(Cost $68,154,307) 48,397,484
Assets less other Liabilities 1.3% 605,339
Net Assets 100.0% $ 49,002,823
The accompanying notes are an integral part of the financial statements.
a non-income producing security

Energy

Performance
ICON Energy Fund (The "Fund") opened on November 5, 1997. The Fund's total
return since inception through 9/30/98 was (36.50%). The Standard & Poor's
Energy Index return was (4.78%) for the same period. The strategy of the ICON
Energy Fund is to invest in undervalued industries in the Energy sector that
show signs of potential strong performance relative to the market. The Fund is
currently positioned in the Oil & Gas (Drilling & Equipment) and Oil & Gas
(Exploration & Production) industries. Compared to other potential Energy
holdings, these industries are the smaller capitalization segments of the
market. The Advisor's decision to invest in smaller capitalization industries is
not based on predetermined bias for small capitalization companies. Rather, it
is based on a quantitative investment methodology that currently finds the most
compelling investment opportunities in the smaller capitalization industries.
Most of the companies in these two smaller capitalization industries have market
capitalizations in excess of $1 billion. Relatively, however, their market
capitalizations are much smaller than the larger integrated companies. The
Energy sector was a top performer in 1997. But despite a strong first quarter,
1998 has been a difficult year for Energy stocks. Weak demand for oil, most
notably in Asia, has caused prices to sink considerably in 1998. As the
profitability of most Energy companies varies with the price of oil, these
stocks have sold off sharply. Should oil prices turn around, the outlook for the
industry would be much brighter. Hope for a bottom in oil prices comes from
potential production cuts from both OPEC and non-OPEC nations. Given their
sensitivity to the price of oil, most Energy stocks are inherently more volatile
than the average equity. Although the volatility has hurt the Fund's relative
performance as Energy stocks have declined, the Advisor expects the Fund to have
significant upside potential when the Energy stocks turn around. Industry
Highlights Oil & Gas (Exploration & Production) stocks account for approximately
half of the ICON Energy Fund. Stocks in this industry include Anadarko
Petroleum, Devon Energy Corporation, and Noble Affiliates, among others. Similar
to other Energy stocks, Oil & Gas (Exploration & Production) equities have been
hard hit. As the quarter ended, many of these stocks were trading near their
52-week lows. This industry has been especially hurt by low oil prices, and
companies have faced a tough operating environment in 1998. Earnings this year
have been weak in comparison to 1997. Additionally, earnings estimates have been
cut, reflecting the softening global demand. Asian demand appears to be the
weakest, with U.S. and European demand slow, but stable. With the price of oil
low and demand retreating, the near term outlook for the industry is uncertain.
Yet with the recent sell-off in these stocks, much of this uncertainty appears
priced into their shares. At these levels, stocks within the Exploration &
Production industry offer significant long term appreciation potential. Oil &
Gas (Drilling & Equipment) stocks make up approximately half of the ICON Energy
Fund. Top holdings in the Fund include Schlumberger, Halliburton, and Transocean
Offshore. These stocks have also been hurt by falling oil prices. Companies have
not performed up to investor expectations in 1998 and have been punished by the
market with sharp declines. Worldwide drilling activity has fallen in 1998, and
demand for drilling equipment and services has fallen. These companies are
responding, however. To combat declining reserves, many of these companies have
pursued major offshore drilling projects. They have benefited from new
technology that allows them to reduce the cost of exploring and developing
reserves. This has enabled them to take on new projects that were recently
unfeasible. Despite the sharp price declines in these stocks, long term
prospects for the industry remain strong. Valuations for the industry look
exceptionally favorable. As the third quarter began, positions in the Domestic
and International Integrated Oil stocks were sold. These industries no longer
fit with the Advisor's investment strategy in the Fund. Current Outlook The
sharp sell-off in Energy stocks has created some very good buying opportunities.
Trading near 52-week lows, many stocks in the Fund have considerable upside
potential. The Advisor's valuation measures suggest that Energy stocks are at
significant discounts to their intrinsic values. Although the Advisor cannot
forecast exactly when these stocks will turn around, the Advisor sees ample
opportunity in the Fund for long term investors. Volatility is inherent in
equities, especially those that derive a significant value from a commodity such
as oil. As such, volatility should be expected in Energy stocks. This volatility
has worked against the sector in 1998, as it has underperformed the broad
market. However, many Energy stocks are trading near historic valuations lows,
and the Advisor expects an eventual rebound in these shares. Volatility then
could contribute to potential market beating returns.

Portfolio Profile September 30, 1998
Equities 99.8%
Top 10 Equities (% of Net Assets) 51.4%
Number of Stocks 28
Cash & Cash Equivalents 0.0%
Top 10 Equity Holdings September 30, 1998
Schlumberger 7.2%
Anadarko 6.7%
Devon Energy Corporation 5.4%
Burlington Resources, Inc. 5.2%
Noble Affiliates 5.1%
Apache 5.0%
Kerr-Mcgee 4.5%
Murphy Oil 4.5%
Union Pacific Resources Group 4.0%
Haliburton 3.8%
Top Industries September 30, 1998
Oil & Gas (Exploration/Prod.) 52.8%
Oil & Gas (Drilling & Equip) 47.0%

Schedule of Investments
September 30, 1998

Shares Market Value
Common Stocks 99.8%
Oil & Gas (Drilling & Equip.) 47.0%
18,200 Baker Hughes, Inc. $ 381,063
21,700 B J Servicesa 352,625
34,400 Ensco International, Inc. 371,950
32,200 Global Marine, Inc.a 356,212
16,500 Haliburton Co. 471,281
14,600 Helmerich & Payne 306,600
29,500 Nabors Industriesa 448,031
25,300 Noble Drilling Corp.a 373,175
13,500 Parker Drilling Co.a 70,031
17,500 Rowan Cos, Inc.a 195,781
17,604 Schlumberger 885,701
8,600 Smith International, Inc. 235,962
17,700 Tidewater, Inc. 367,275
13,500 Transocean Offshore, Inc. 468,281
17,100 Varco International, Inc. 143,213
16,765 Weatherford Internationala 362,543
Total Oil & Gas (Drilling & Equip.) 5,789,724
Oil & Gas (Exploration/Prod.) 52.8%
21,000 Anadarko Petroleum Corp. 825,564
23,200 Apache Corp. 622,050
19,600 Barrett Resources Corp.a 395,675
17,200 Burlington Resources 642,850
20,200 Devon Energy Corporation 665,337
12,100 Kerr-Mcgee Co. 550,550
14,200 Murphy Oil Corp. 550,250
19,700 Noble Affiliates 627,937
34,600 ORYX Energy 447,638
32,000 Pioneer Natural Resources 450,000

Shares Market Value
Common Stocks - continued
Oil & Gas (Exploration/Prod.) - continued
19,800 Seagull Energy Corp.a 243,788
40,000 Union Pacific Resources
Group 492,500
Total Oil & Gas (Exploration/Prod.) 6,514,139
Total Common Stocks
(Cost $20,118,261) 12,303,863
Total Investments 99.8%
(Cost $20,118,261) 12,303,863
Assets less other Liabilities 0.2% 30,695
Net Assets 100.0% $ 12,334,558
The accompanying notes are an integral part of the financial statements.
a non-income producing security

Financial Services

Performance
ICON Financial Services Fund (The "Fund") opened on July 1, 1997. The Fund's
total return since inception through 9/30/98 was (5.89%). The Lipper Financial
Services Index return was 7.58% for the same period. The Fund's total return
from 10/1/97 through 9/30/98 was (10.46%). The Lipper Financial Services Index
return from 10/1/97 through 9/30/98 was (4.30%). Financial Services stocks have
been leaders for much of the extended bull market in the 1990s. The dramatic
drop in interest rates has fueled the bull market and has especially helped
interest rate sensitive stocks. The 30-year government bond, which was near 10%
following the market crash in October, 1987, was below 5% as the quarter ended.
Low interest rates benefit Financial Services companies by widening the spread
they earn on their money. Global stability and improving economies worldwide
have also increased the demand for money, boosting Financial shares. Because of
their extended gains in the last 10 years, Financial Services stocks are
currently the largest sector in the S&P 500. In addition to rising market
capitalizations, valuations for these stocks have also increased. When the bull
market began, most Financial Services stocks traded at significant discounts to
the S&P 500. However, recently they have commanded much higher multiples. They
are fetching these multiples because they have more growth opportunities, better
balance sheets, and also because of the low interest rate environment. According
to the Advisor's valuation methods, many of the Financial Services stocks were
trading above their fair value in early 1998. Following the Advisor's investment
strategy, industries were selected that had attractive relative valuations and
the potential to outperform the market. Despite falling interest rates,
Financial Services stocks have been hit hard recently. The Asian and Russian
financial turnmoil has been a painful reminder to investors and Financial
Services companies that loans can default. Slowing global growth has sparked
additional concern for default risk. A final blow to Financial Services stocks
was the well publicized collapse of Long Term Capital Management. This hedge
fund, which was run by some of the brightest minds on Wall Street, suffered huge
losses. This sent a wave of panic through the markets and prompted the Federal
Reserve to call a special meeting. This event caused many investors to panic,
and Financial Services shares were hard hit. Industry Highlights The largest
industry in the Fund is Insurance (Property/Casualty), with such stocks as
Allstate, Progressive, and St. Paul. These stocks have been hurt recently,
despite the rally in the bond market. Many of the bond portfolios held by the
Insurance (Property/Casualty) companies are invested in corporate and mortgage
securities, which have not rallied to the same degree as the government market.
The sell-off in the industry has created some great buying opportunities. The
industry is economically sensitive, and worries domestically and abroad continue
to make near term earnings uncertain. From these levels, however, these stocks
appear to be compelling long term investments. The second largest industry in
the Fund is Consumer Finance. These companies, including Capital One, MBNA, and
Household International, compete in many segments of the consumer market. Like
other Financial Services industries, the Consumer Finance industry is vulnerable
to a slowing economy. Both earnings and asset growth would be retarded in the
event of an economic downturn. Much uncertainty and pessimism are already priced
in these shares; therefore, any economic outcome short of a recession still
might provide an opportunity to make money in these shares. Financial
(Diversified) companies have been hit recently much the same as the two industry
groups previously discussed. This industry includes such names as American
Express and Countrywide Credit. Pessimism in the economic outlook hurts these
shares. However, falling interest rates that generally accompany a slowing
economy can be a positive for this and other Financial Services industries. The
Advisor's investment philosophy is not to guess where the economy is headed and
make investment decisions based on those predictions. Rather, it is a
quantitative discipline. The Advisor examines a stock's normalized earnings,
projected rate of growth, and a risk measure. If many stocks in an industry are
selling at a discount relative to where they should be based on these
fundamentals, the Advisor favors that industry. The Current Outlook With the
recent market setback, many Financial Services stocks are much less expensive
than they were just six months ago. As such, many good buying opportunities
exist within the sector. The Advisor will attempt to position the Fund in
undervalued industries that show the potential to outperform market averages.
Further economic worries could hurt shares within the Fund. The path of the
economy is difficult, if not impossible, to predict. Forecasters are currently
calling for a slowing economy, with some even suggesting a possible recession.
This alone should not deter investments in this area, given the poor track
record of economic forecasting and the fact that many of these stocks have
already taken a substantial hit. Additionally, the current low interest rate
environment should benefit most Financial Services companies.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 99.9% 99.1%
Top 10 Equities (% of Net Assets) 42.2% 41.3%
Number of Stocks 38 49
Cash & Cash Equivalents 0.0% 0.9%
Top 10 Equity Holdings September 30, 1998 September 30, 1997
MBNA Corp. 6.6% 4.8%
Capital One Financial Corp. 6.4% 4.7%
Household International Inc. 5.5% 4.0%
Country Credit Ind. Inc. 3.9% -
First Chicago NBD Corp. 3.7% -
BankAmerica Corp. 3.5% 3.4%
Fannie Mae 3.4% -
Chase Manhattan Corp. 3.1% 4.1%
Citicorp 3.1% 3.9%
Conseco Inc. 3.0% -
Top Industries September 30, 1998 September 30, 1997
Insurance (Property/Casualty) 30.9% 24.8%
Consumer Finance 22.6% 26.8%
Financial (Diversified) 18.0% -
Banks & Bank Holding Companies 16.2% 16.5%
Insurance (Multi-Line) 12.2% -

Schedule of Investments
September 30, 1998

Shares Market Value
Common Stocks 99.9%
Financial (Diversified) 18.0%
5,900 American Express Company $ 457,988
5,000 American General Corp. 319,375
16,000 Countrywide Credit Ind. 666,000
9,400 Federal Home Loan Inc.
Mtg. Corp. 464,712
9,000 Fannie Mae 578,250
6,400 Morgan Stanley
& Dean Witter Co. 275,600
5,500 SunAmerica 335,500
Total Financial (Diversified) 3,097,425
Banks & Bank Holding Companies 16.2%
10,100 BankAmerica Corp. 607,263
8,000 Bankers Trust Corp. 472,000
12,400 Chase Manhattan Corp. 536,300
5,800 Citicorp 539,038
9,300 First Chicago NBD Corp. 637,050
Total Banks & Bank Holding
Companies 2,791,651
Consumer Finance 22.6%
10,600 Capital One Financial Corp. 1,097,100
42,900 Cash America Intl. 477,263
32,100 Contifinancial Corp.a 240,750
25,100 Household International Inc. 941,250
39,500 MBNA Corp. 1,130,687
Total Consumer Finance 3,887,050
Insurance (Multi-Line) 12.2%
4,600 American International
Group 354,200
6,100 CIGNA Corp. 403,363
17,078 Conseco Inc. 521,946
4,360 Hartford Financial Services 206,827
2,500 Lincoln National Corp. 205,625
10,750 Travelers Group Inc. 403,125
Total Insurance (Multi-Line) 2,095,086

Shares Market Value
Common Stocks - continued
Insurance (Property/Casualty) 30.9%
9,300 Allstate Corp. $ 387,694
10,400 American Financial Grp., Inc. 336,700
13,000 Capital Re Corp. 355,875
5,300 Chubb Group 333,900
7,700 CMAC Investment Corp. 334,950
9,800 Cincinnati Finance Corp. 301,350
12,300 Enhance Financial Svcs
Group 363,618
8,800 Fremont General Corp. 422,400
1,500 General Re Corp. 304,500
8,300 Orion Capital Corp. 296,206
3,500 Progressive Corp. 394,625
8,500 Safeco Corp. 354,344
19,700 Selective Insurance
Group Inc.a 376,762
11,460 St Paul Co. 372,450
4,600 Transatlantic Holdings, Inc. 380,650
Total Insurance (Property/Casualty) 5,316,024
Total Common Stocks
(Cost $19,971,227) 17,187,236
Total Investments 99.9%
(Cost $19,971,227) 17,187,236
Assets less other Liabilities 0.1% 23,298
Net Assets 100.0% $ 17,210,534
The accompanying notes are an integral part of the financial statements.
a non-income producing security

Healthcare

Performance
ICON Healthcare Fund (The "Fund") opened on February 24, 1997. The Fund's total
return since inception through 9/30/98 was 22.24%. The Lipper
Health/Biotechnology Index return was 19.85% for the same period. The Fund's
total return from 10/1/97 through 9/30/98 was 3.77%. The Lipper
Health/Biotechnology Index return from 10/1/97 through 9/30/98 was 5.31%. The
Healthcare Fund benefited from investor concerns regarding both a slowing
domestic economy and turmoil abroad. Several of the industries in the sector are
viewed as safe havens because the companies generate consistent earnings and
their products have a non-cyclical demand. These industries provided good upside
when the market was rallying and were defensive in the most recent market
downturn. The volatility of the market has been driven by concerns of a global
recession. Last fall, investors were spooked by the Asian currency crisis. Those
fears receded in the early part of 1998. But as the impact of the currency
crisis became clear, investors again were concerned. Investors worried first
that the Asian economies were contracting, and then became concerned with Latin
America, Europe, and finally the United States. By the end of the third quarter,
investors had grown fearful of any market risk and fled into U.S. Treasuries.
The yield on the 30-year U.S. Treasury bond fell below 5% for the first time
ever. Industry Highlights The Fund's largest industry holdings are
Drugs/Pharmaceuticals, Diversified Healthcare and Medical Products/Supplies. The
Drugs/Pharmaceuticals industry includes companies such as Merck, Pfizer,
Schering-Plough, Eli Lilly, and Pharmacia Upjohn. These companies continue to
report double-digit earnings growth, which has been propelled by new products,
increased sales volume, and pricing power. Moreover, this industry has been
something of a Wall Street darling due to its very low exposure to Asia. The
Fund has held this industry since its inception and has benefited from the
remarkable price appreciation in these stocks. Based on the Advisor's
quantitative approach, this industry is fully valued but will be held until a
more compelling investment opportunity exists within the sector. The Diversified
Healthcare industry is comprised of companies such as Johnson & Johnson,
Warner-Lambert, American Home Products, and Bristol Myers Squibb. This industry
is similar to the Drugs/Pharmaceuticals industry, as these companies have
products that directly compete against the likes of Merck and Lilly. They are
benefiting from the same healthy business conditions as the
Drugs/Pharmaceuticals companies. In addition, the Diversified Healthcare group
produces consumer products such as Warner-Lambert's Sudafed and Schick, and
Bristol-Myers' Bufferin and Clairol. Like the Drugs/Pharmaceuticals industry,
the Advisor's valuation model shows Diversified Healthcare stocks to be fully
valued. The Advisor will continue to evaluate the investment merits of this
industry versus other opportunities. The Medical Products/Supplies industry
includes companies such as Medtronic, Guidant, Baxter International, Biomet, and
Boston Scientific. These companies make products like heart pacemakers,
diagnostic devices, and implements for surgical and non-surgical procedures. In
prior years, when health care costs rose rapidly, this industry could charge a
premium for their products. Lately, as health care providers struggle to contain
costs, they are forcing the Medical Products and Supplies industry to be cost
conscious and efficient. The successful companies have adapted to the new
environment and have been able to post strong earnings gains. The Advisor sees
good values in the industry. The two other industries in the Fund are Long-Term
Care and Managed Care. Stocks in both industries have suffered large price
declines due to concerns about reported earnings and government actions.
Investors appear to have driven prices down excessively. Both industries offer
wide price appreciation potential from current levels. Current Outlook
Healthcare companies are positioning themselves to capitalize on opportunities
arising from shifting demographics in the U.S. The favorable environment - aging
populations around the world and increased health care spending - bodes well for
the future. Based on the long term potential for this sector, many investors
would be wise to include an allocation to Healthcare stocks in their portfolio.
Many stocks in the Healthcare sector have produced solid investment returns in
the bull market and the most recent correction. The Fund has held up well in a
turbulent market due to the generally healthy operating environment for many of
the companies.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 99.2% 97.2%
Top 10 Equity (% of Assets) 59.7% 35.8%
Number of Stocks 39 73
Cash & Cash Equivalents 0.0% 2.8%
Top 10 Equity Holdings September 30, 1998 September 30, 1997
Bristol-Myers Squibb Co. 7.2% 4.7%
Pfizer, Inc. 7.2% 5.2%
Schering-Plough Corp. 7.2% 4.2%
Lilly (Eli) & Co. 6.9% 5.2%
Merck & Co. 6.7% 3.2%
Warner-Lambert Co. 6.0% 2.5%
American Home Products Corp. 5.5% 2.4%
Johnson & Johnson 5.0% -
Pharmacia & Upjohn Inc. 4.9% -
Abbot Laboratories 3.1% -
Top Industries September 30, 1998 September 30, 1997
Drugs/Pharmaceuticals 34.0% 18.2%
Diversified Healthcare 31.2% 16.6%
Medical Products/Supplies 15.0% -
Managed Care 10.8% 14.4%
Long-Term Care 8.2% 13.3%

Schedule of Investments
September 30, 1998

Shares Market Value
Common Stocks & Rights 99.2%
Diversified Healthcare 31.2%
22,200 Abbott Laboratories $ 964,312
7,700 Allergan Inc. 449,488
32,600 American Home Products Corp. 1,707,425
21,450 Bristol-Myers Squibb Co. 2,228,119
20,100 Johnson & Johnson 1,572,825
45,300 Sierra Health Servicesa 891,844
24,900 Warner-Lambert Co. 1,879,950
Total Diversified Healthcare 9,693,963
Drugs/Pharmaceuticals 34.0%
4,100 Genentech, Inc.a 294,687
27,600 Lilly (Eli) & Co. 2,161,425
16,200 Merck & Co. 2,098,913
21,200 Pfizer, Inc. 2,245,875
30,500 Pharmacia & Upjohn Inc. 1,530,719
21,700 Schering-Plough Corp. 2,247,306
Total Drugs/Pharmaceuticals 10,578,925
Long-Term Care 8.2%
59,700 Beverly Enterprises Inc.a 477,600
27,000 Genesis Health Ventures, Inc.a 330,750
16,950 HCR Manor Care 496,847
23,030 Healthsouth Corp.a 243,254
23,700 Integrated Health
Services, Inc. 398,456
29,000 Mariner Post-Acute
Network, Inc.a 148,625
37,500 Novacare, Inc.a 114,844
20,800 Sun Healthcare Group, Inc.a 135,200
14,100 Vencor, Inc.a 56,400
14,100 Ventasa 167,438
Total Long-Term Care 2,569,414
Managed Care 10.8%
6,400 Aetna Life and Casualty Co. 444,800
19,300 First Health Group Corp.a 468,025
5,500 Express Scripts Inc. Class Aa 452,375
24,900 Humana Inc. 407,737
6,350 Pacificare Health Systems
Class Ba 473,075
56,600 Phycor, Inc.a 283,000

Shares Market Value
Common Stocks - continued
Managed Care - continued
11,850 United Healthcare Corp. $ 414,750
7,400 Wellpoint Health Networksa 414,863
Total Managed Care 3,358,625
Medical Products/Supplies 15.0%
12,000 ADAC Laboratories 288,000
11,000 Ballard Medical Products 220,687
12,000 Baxter International Inc. 714,000
15,200 Becton Dickinson Co. 625,100
19,200 Biomet Inc. 666,000
11,400 Boston Scientific Corp.a 585,675
11,400 Guidant Corp. 846,450
12,600 Medtronic, Inc. 729,225
Total Medical Products/Supplies 4,675,137
Total Common Stocks
(Cost $28,703,592) 30,876,064
Total Investments 99.2%
(Cost $28,703,592) 30,876,064
Assets less other Liabilities 0.8% 277,285
Net Assets 100.0% $ 31,153,349
The accompanying notes are an integral part of the financial statements.
a non-income producing security

Leisure

Performance
ICON Leisure Fund (The "Fund") opened on May 9, 1997. The Fund's total return
since inception through 9/30/98 was 18.25%. The Standard & Poor's
Entertainment/Leisure Composite Index return was 20.90% for the same period. The
Fund's total return from 10/1/97 through 9/30/98 was 4.18%. The Standard &
Poor's Entertainment/Leisure Composite Index return from 10/1/97 through 9/30/98
was 14.80%. The benchmark quoted above, the Standard & Poor's
Entertainment/Leisure Composite Index, is composed of only thirteen stocks. Four
stocks comprise approximately 86% of the index; thus, it is not a substitute for
a well diversified portfolio. Although it is clearly not a perfect benchmark, it
is currently the best one available in the Leisure sector. The ICON Leisure Fund
has slightly trailed its benchmark since its inception. In general, the Leisure
sector has almost kept pace with the broad market, as measured by the Standard &
Poor's 1500 Index. This is an impressive feat, as the market appreciation in the
last eighteen months has been extremely narrow. Many Leisure stocks, including
Disney, Time Warner, and McDonalds, have large market capitalizations. These and
other large capitalization stocks have outpaced most mid and small
capitalization stocks in the market during the last 18 months. Industry
Highlights Due to very attractive valuations, Restaurant stocks have been the
largest holding in the ICON Leisure Fund. As of September 30, 1998, Restaurant
stocks comprised approximately one third of the Fund. Thus far, the performance
of these stocks has been mixed. Results have been stock specific, with a wide
range of dispersion. Companies with improving same store sales and other
positive trends have posted strong performance. Winners include Brinker
International, Darden, McDonalds, and Outback Steakhouse. Other stocks that have
failed to exceed expectations have been punished by the market. These stocks
include Lone Star Steakhouse and Applebees. Valuations for these stocks remain
compelling, but short term performance has been disappointing. Despite the weak
short term correlation of stocks within the Restaurant industry, the Advisor
continues to believe that the best way to invest in the Leisure sector is
through an industry approach. This lessens stock specific risk and improves
diversification. As of September 30, 1998, Broadcasting TV, Radio, Cable stocks
were the second biggest industry holding in the Fund. Through much of 1998,
these stocks outpaced the broad market. Operating results were strong, and
investor sentiment was overwhelmingly bullish. These stocks were also resilient
in the most recent quarter when the broad market fell sharply. Highlighting the
positive news in this industry was AT&T's announcement early in the summer that
it would acquire TCI. This merger heightened interest in the Broadcasting TV,
Radio, Cable industry, as these companies were viewed as potential strategic
partners for Telecommunications firms. After the AT&T and TCI merger, the
combined company will have an established presence in approximately one third of
domestic households. This merger and acquisition activity should continue to
make these Cable shares valuable. Tobacco stocks are the third largest holding,
making up approximately 27% of the Fund as of September 30, 1998. When initially
purchased, these stocks were classic value opportunities. They were selling at
very attractive valuations, based on price to earnings ratios, market to book
ratios, or the Advisor's internally generated valuation measure. News on the
industry was uniformly bad, as investors worried over the potential liability
from a government brokered tobacco settlement. From the Advisor's perspective,
the worry and pessimism was already priced into their shares, most of which were
trading near 52 week lows. The Advisor purchased a group of tobacco stocks for
the Fund, including Phillip Morris, UST, and RJR Nabisco. After the initial
purchase, the Tobacco stocks drifted lower. However, in late May, many of these
stocks bottomed. Since then, these stocks have appreciated steadily, despite the
correction in the broad market. Tobacco shares continue to have attractive
valuation characteristics and perform well relative to the market. Both Leisure
Time Products and Entertainment stocks were sold in the Fund in mid-1998.
Entertainment stocks were sold for nice gains, but the performance of the
Leisure Time Products stocks was mixed. In general, larger capitalization stocks
were better performers than mid and small capitalization stocks. Both industries
were sold because they no longer met the Advisor's quantitative investment
discipline. Gaming stocks have been disappointing. They were initially purchased
with very attractive valuations and solid relative performance. However, these
stocks have faltered. Gaming companies have continued to disappoint, and any
short term performance surprise on the upside has been followed by further
negative price moves. They are an insignificant percentage of the Fund, as they
have been reduced to raise cash and pursue more attractive investment
opportunities in the sector. Current Outlook Since its inception, the ICON
Leisure Fund has posted almost market type returns. In a normal market, this
might not be worth bragging about. But given how few stocks have led the market
and how few funds have kept pace, the returns in the Leisure sector have been
solid. In many Leisure industries, the large capitalization stocks have been
leaders, allowing the Fund to participate in the narrow advance of the market.
Broadcasting TV, Radio, Cable and Restaurant stocks remain core holdings.
Purchased based on value, many of these issues have posted market beating
returns. Although they are not the bargains they were when initially purchased,
they are still quality holdings. Tobacco stocks are currently the most
compelling investments in the Fund. They are undervalued and have been resilient
in the turbulent market.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 97.4% 97.9%
Top 10 Equities (% of Net Assets) 64.7% 37.7%
Number of Stocks 27 39
Cash & Cash Equivalents 0.3% 2.1%
Top 10 Equity Holdings September 30, 1998 September 30, 1997
Phillip Morris Cos. Inc. 9.0% -
Comcast Corp Special Class A 8.4% 3.6%
Tele-communications Inc. Class A 7.9% 3.8%
UST Inc. 7.2% -
Cox Communications Inc. Class A 6.9% 3.1%
RJR Nabisco Holdings Corp. 6.0% -
McDonalds Corp. 6.0% 3.1%
Wendy's International Inc. 4.5% 3.1%
Gallagher Group PLC ADR 4.4% -
TCA Cable TV Inc. 4.4% -
Top Industries September 30, 1998 September 30, 1997
Restaurants 35.1% 28.6%
Broadcasting, TV, Radio, Cable 30.0% 13.3%
Tobacco 26.6% -
Gaming, Lottery & Parimutuel 4.2% 17.4%
Leisure Time (Products) 1.5% 16.2%

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 Funds are since the inception of
the Fund through the dates shown. The returns are total returns, and include the
reinvestment of dividends and capital gains. Past performance does not guarantee
future results. The S&P Entertainment/Leisure Composite is a
capitalization-weighted index of all the stocks in the Standard & Poor's 500
that are involved in the business of entertainment and leisure related products
and services. It is comprised of 13 stocks. The S&P Entertainment/Leisure
Composite Index is an unmanaged index that includes the reinvestment of
dividends and does not reflect deductions for commission, management fees and
all expenses. Individuals cannot invest in the index itself.

Schedule of Investments
September 30, 1998

Shares or Principal Amount Market Value
Common Stocks 97.4%
Tobacco 26.6%
80,900 Gallagher Group PLC ADR $ 2,376,437
106,400 Philip Morris Cos. Inc. 4,901,050
130,700 RJR Nabisco Holdings
Corp. 3,292,006
131,800 UST Inc. 3,896,338
Total Tobacco 14,465,831
Broadcasting TV, Radio, Cable 30.0%
97,100 Comcast Corp. Class A 4,557,631
68,500 Cox Communications Inc.
Class Aa 3,741,812
29,000 Mediaone Groupa 1,288,688
85,500 TCA Cable TV Inc. 2,404,688
110,300 Tele-communications Inc.
Class Aa 4,315,488
Total Broadcasting TV, Radio, Cable 16,308,307
Leisure Time (Products) 1.5%
54,100 BAT Industries, PLC ADRa 818,262
Total Leisure Time (Products) 818,262

Shares or Principal Amount Market Value
Common Stocks - continued
Restaurants 35.1%
112,300 Applebees International Inc. $ 2,344,262
85,200 Bob Evans Farms 1,698,675
198,100 Boston Chicken Inc.a 148,575
93,900 Brinker International Inc.a 1,760,625
20,130 CKE Restaurants Inc. 598,868
41,700 Cracker Barrel Old
Country Stores 948,675
137,300 Dardeen Restaurants Inc. 2,196,800
94,500 Lone Star Steakhouse
Saloon Inc.a 720,562
55,100 McDonalds Corp. 3,288,781
25,700 Outback Steakhouse Inc.a 677,838
23,600 Starbucks Corp.a 854,025
37,300 Tricon Global Restaurantsa 1,454,700
110,000 Wendy's International Inc. 2,440,625
Total Restaurants 19,133,011
Gaming, Lottery, & Parimutuel 4.2%
37,300 Circus Circus Enterprises Inc.a 352,019
44,900 Harrah's Entertainment Inc.a 597,731
40,100 Intl Game Technology 744,356
36,900 Mirage Resorts Inc.a 618,075
Total Gaming, Lottery & Parimutuel 2,312,181
Total Common Stocks
(Cost $48,750,896) 53,037,592
Short-Term Commercial Notes 0.3%
$147,835 American Family Demand Note
4.96% 7/26/99 147,835
Total Short Term Commercial Notes
(Cost $147,835) 147,835
Total Investments 97.7%
(Cost $48,898,731) 53,185,427
Assets less other Liabilities 2.3% 1,240,994
Net Assets 100.0% $ 54,426,421
The accompanying notes are an integral part of the financial statements.
a non-income producing security

Technology

Performance
ICON Technology Fund (The "Fund") opened on February 19, 1997. The Fund's total
return since inception through 9/30/98 was (4.31%). The Lipper
Science/Technology Index return was 8.64% for the same period. The Fund's total
return from 10/1/97 through 9/30/98 was (26.17%). The Lipper Science/Technology
Index return from 10/1/97 through 9/30/98 was (10.69%). The ICON Technology Fund
suffered from investor concerns regarding both a slowing domestic economy and
turmoil abroad. Last October, when Asian economies faltered, investors retreated
from industries with heavy Asian exposure. The Technology sector in particular
was hard hit. In early 1998, some of those fears subsided and stocks rallied. As
the year wore on, however, investors became anxious about other international
markets besides Asia. By the end of the third quarter, investors grew fearful of
any market risk and fled into U.S. Treasuries. The yield on the 30-year U.S.
Treasury bond fell below 5% for the first time ever. The Technology Fund
contains many small and mid-cap stocks. The Advisor's philosophy is to purchase
an entire set of stocks within an industry rather than to select individual
stocks. As a result, the Fund owns stocks with a range of capitalizations. For
example, in the Communications Equipment industry, the Fund owns large
capitalization companies such as Lucent, Motorola and Northern Telecom, as well
as smaller companies such as ADC Telecom and Scientific Atlanta. As investors
fled the risks of international markets, they also fled the perceived risks of
the small and mid-cap stocks. Whether due to a desire for liquidity or fear that
a recession would harm small companies more than large companies, investors
drove down prices for small and mid-cap stocks 30-50% off their 52-week highs.
The Advisor believes value, not liquidity, will drive markets in the long term.
Through most of the year, the blue chip companies that dominate the S&P indexes
avoided the sell-off and performed much better than small and mid-cap stocks.
But by the end of August and into September, even the blue chips were dropping.
Industry Highlights The Fund's largest industry holdings are Communications
Equipment, Electronics Semiconductor, Computer Hardware and Computer Network.
The Communications Equipment industry has benefited from strong spending by the
telephone companies and internet service providers as these companies race to
provide new services to customers. The proposed merger between AT&T and TCI may
even accelerate equipment spending as the regional bells and other cable
companies spend to compete with the new industry giant. AT&T, with its extensive
financial resources, will also spend heavily to upgrade the one-way cable plant
to a two-way communication vehicle. This industry offers compelling values,
especially in the small and mid-cap companies. The Electronics Semiconductor
industry has suffered for more than a year from excess capacity and from low
demand brought on by the Asian slowdown. The Advisor's valuation measures show
near record valuation levels as investors have fled these stocks in droves.
However, supply and demand may be returning to balance. On the supply side, a
number of companies, including some of the big Asian producers, have announced
plans to scrap new projects and cut back on current production. On the demand
side, companies like Intel and Motorola have forecast stronger demand than
investors had expected. And for the long term, semiconductors are finding their
way into more products. The Computer Hardware industry includes companies like
International Business Machines, Dell, Compaq, Hewlett-Packard and Sun
Microsystems. The Computer Hardware industry has been a holding since the Fund's
inception and has been a strong performer over that time. Lately, as with many
stocks in the Technology sector, these companies' stock prices have been subject
to a great deal of volatility. However, the industry continues to provide solid
value and good long-term prospects. Computer Network companies have benefited
from strong business spending on corporate networks. In addition, telephone and
internet companies are buying network products in order to offer voice, video
and data services. Consumers, too, are buyers of products like 3Com's Palm
Pilot. One of the Fund's investments, Bay Networks, was purchased by Northern
Telecom. Often times, value investments are recognized as such not only by value
investors, but by other companies as well. The Fund realized healthy gains as a
result of the acquisition. Current Outlook Technology stocks are significantly
undervalued. The Advisor believes that fears about a global recession are
overblown and that new-found investor awareness that equities go down as well as
up provides a great buying opportunity. After the recent sell-off, many
Technology industries have the most attractive value readings that they have had
in the 1990s. From these levels, the Advisor expects significant long term
appreciation potential for industries in the Fund.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 99.2% 97.4%
Top 10 Equity (% of Assets) 38.8% 39.8%
Number of Stocks 51 55
Cash & Cash Equivalents 0.1% 2.8%
Top 10 Equity Holdings September 30, 1998 September 30, 1997
3Com 4.9% 5.6%
Cisco Systems Inc. 4.6% 5.3%
Dell Computer Corp. 4.5% -
Cabletron Systems 4.4% 5.0%
Intel Corp. 4.0% 5.9%
Northern Telecom Ltd. 3.6% -
Scientific-Atlanta Inc. 3.4% -
Applied Materials Inc. 3.3% -
Novellus Systems, Inc. 3.1% -
Motorola, Inc. 3.0% -
Top Industries September 30, 1998 September 30, 1997
Electronic Semiconductors 29.9% 13.9%
Communications Equipment 26.3% 17.6%
Computer Hardware 16.2% 17.5%
Computer Networking 14.0% 23.1%
Peripherals 12.8% 19.3%

Schedule of Investments
September 30, 1998

Shares or Principal Amount Market Value
Common Stocks 99.2%
Communications Equipment 26.3%
66,600 ADC Telecommunications
Inc.a $ 1,406,925
58,700 Allen Telecommunications
Inc.a 392,556
44,350 Andrew Corp.a 587,638
29,800 Analog Devicesa 478,662
51,850 Aspect Telecommunications
Corp.a 1,244,400
25,100 Lucent Technologies 1,733,469
42,600 Motorola Inc. 1,818,488
77,350 Newbridge Networks Corp. 1,387,466
68,620 Northern Telecom Ltd. 2,195,840
31,550 Qualcom Inc.a 1,512,428
98,150 Scientific-Atlanta Inc. 2,073,419
27,600 Tellabs Inc.a 1,098,825
Total Communications Equipment 15,930,116
Computer Hardware 16.2%
15,300 Adaptec, Inc.a 145,350
30,500 Ascend Communicationsa 1,387,750
31,898 Compaq Computer Corp. 1,008,774
41,200 Dell Computer Corp.a 2,708,900
20,200 Hewlett-Packard Co. 1,069,337
11,900 International Business
Machines 1,523,200
13,400 Sequent Computer
Systems, Inc.a 116,413
36,200 Sun Microsystems, Inc.a 1,803,213
Total Computer Hardware 9,762,937
Computer Networking 14.0%
99,400 3Com Corp.a 2,988,212
237,900 Cabletron Systemsa 2,676,375
45,037 Cisco Systems, Inc.a 2,783,880
Total Computer Networking 8,448,467
Peripherals 12.8%
27,800 EmcCorp/MAa 1,589,812
104,900 Iomega Corp.a 393,375
65,900 Komag, Inc.a 201,819
20,900 Lexmark Intl. Grp., Inc.
Class Aa 1,448,631
39,200 Quantum Corp.a 622,300
59,600 Read-Rite Corp.a 465,625
39,800 Seagate Technologya 997,488
39,600 Storage Technology Corp. 1,007,325
94,100 Western Digital Corp.a 1,011,575
Total Peripherals 7,737,950

Shares or Principal Amount Market Value
Common Stocks - continued
Electronic Semiconductors 29.9%
44,400 Advanced Micro Devicesa $ 824,175
25,800 Altera Corp.a 906,225
78,100 Applied Materialsa 1,972,025
52,700 Atmel Corp.a 477,594
17,900 Dallas Semiconductor Corp.a 483,300
20,300 ETEC Systemsa 529,069
28,100 Intel Corp. 2,409,575
67,300 Kla-Tencor Corporationa 1,674,087
18,000 Lattice Semiconductor Corp.a 445,500
12,800 Linear Technology Corp. 640,000
35,300 LSI Logic Corp.a 445,662
23,300 Maxim Integrated Productsa 649,488
37,300 Microchip Technology Inc.a 815,938
31,400 National Semiconductor
Corp.a 304,188
26,400 Micron Technology Inc. 803,550
72,300 Novellus Systems, Inc.a 1,897,875
64,400 Teradyne,Inc.a 1,175,300
15,400 Texas Instruments 812,350
23,500 Xilinx Inc.a 822,500
Total Electronic Semiconductors 18,088,401
Total Common Stocks
(Cost $74,876,917) 59,967,871
Short-Term Commercial Notes 0.1%
$61,707 American Family Demand Note
4.96% 7/26/99 61,707
$23,232 Warner Lambert Demand Note
4.96% 7/26/99 23,232
Total Short-Term Commercial Notes
(Cost $84,939) 84,939
Total Investments 99.3%
(Cost $74,961,856) 60,052,810
Assets less other Liabilities 0.7% 441,091
Net Assets 100.0% $ 60,493,901
The accompanying notes are an integral part of the financial statements.
a non-income producing security

Telecommunication and Utilities

Performance
ICON Telecommunication & Utilities Fund (The "Fund") opened on July 9, 1997. The
Fund's total return since inception through 9/30/98 was 42.32%. The Lipper
Utilities Index return was 23.15% for the same period. The Fund's total return
from 10/1/97 through 9/30/98 was 33.88%. The Lipper Utilities Index return from
10/1/97 through 9/30/98 was 18.89%. The ICON Telecommunications & Utilities Fund
has posted excellent performance since its inception, both absolutely and
compared to its competition. Relative to other Utility funds tracked by Lipper,
the Fund has consistently been a top performer since its inception. In addition,
the Fund's performance has been exceptional relative to all types of mutual
funds. The Electric Utility industry has been the largest holding in the Fund
since its inception, making up approximately half of the Fund as of September
30, 1998. As the market was racing to new highs in late 1997 and then again in
the first two quarters of 1998, these stocks lagged. However, the recent
downturn and volatility in the broad market have revived the stocks within this
industry. As the stock market was plunging in the third quarter, Electric
Utility stocks rallied, and the ICON Telecommunications & Utilities Fund raced
to new highs. Electric Utility stocks, as well as Telephone stocks, have
benefited from the rally in the bond market, as they are interest rate
sensitive. Stocks within the Telephone industry, which consist primarily of the
Regional Bell Operating Companies (RBOCs), have been stellar performers. They
kept pace with the stock market as it was moving higher in early 1998 and proved
to be defensive when the market faltered in the most recent quarter. Currently,
Telephone stocks comprise approximately one third of the Fund. Industry
Highlights The Electric Utility industry is going through a deregulation and
diversification phase. Similar to other industries that have been deregulated,
the process in the Electric Utility industry is expected to take several years.
Further, not all operations within the industry will be deregulated. Power
generation will be deregulated, but transmission and distribution will remain
subject to government control. Many Electric Utility companies are also
diversifying into non-traditional areas. Such areas of opportunity include
international markets, energy related industries, and marketing. Stock pickers
have the very difficult task of trying to decide which Electric Utility stocks
will prosper and which will fail in this new environment. The Advisor's approach
to investing in the industry is significantly different. The Fund holds a
position in the industry because the Advisor's quantitative model finds value in
Electric Utility stocks. Based on their earnings, potential growth, and risk,
they are undervalued. The Advisor purchased a diversified sample of stocks to
reduce stock specific risk and capture the move of the industry. The Fund owns
large, diversified companies that are household names in many parts of the
country. Stocks in the industry include Duke Power, Edison International, and
Texas Utilities. By holding several Electric Utility stocks, the Fund is less
exposed to the uncertainty and risk that a particular company may encounter in
the new operating environment. High dividend yields, steady earnings, and low
volatility make these stocks compelling investments going forward. The Telephone
industry is also undergoing significant change. The Telecommunications Act of
1996 opened most local and long distance markets to more competition, with
certain restrictions. This transition to competition is a process, and the
industry is several years away from being fully competitive. Similar to the
strategy within the Electric Utilities sector, the Advisor does not know which
companies will be the winners and losers in this new environment. Based on the
historic performance of the Fund, this information is not crucial for success.
Stocks held in this sector in the Fund include SBC Communications, BellSouth,
and Ameritech. A byproduct of the new competitive environment is the wave of
consolidation in the industry. Although the government intended The
Telecommunications Act of 1996 to lead to increased competition, it has instead
led to rapid consolidation. Mega-mergers between big industry players are
decreasing the number of competitors. The government may be forced to evaluate
the effectiveness of the Act and take appropriate action if necessary. Current
Outlook The Fund has benefited from the sector's traditionally defensive
characteristics. Electric Utility and Telephone stocks have appreciated despite
the current financial market turmoil. Investors have favored the lower
volatility and higher dividend yields that are generally characteristic of
stocks within these industries. The Fund has also profited from the bond market
rally. As many industries in this sector are interest rate sensitive, prices
have risen as interest rates have continued to fall. If interest rates continue
to fall, or investors remain worried about the global economy, the Fund could
continue to prosper. A turn in the opposite direction could have adverse
effects. The Advisor's investment methodology still favors industries in the
Fund, as they are undervalued and show strong performance relative to the
market.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 92.6% 95.2%
Top 10 Equities (% of Net Assets) 37.4% 31.8%
Number of Stocks 31 42
Cash & Cash Equivalents 11.9% 4.8%
Top 10 Equity Holdings September 30, 1998 September 30, 1997
SBC Communications Inc. 4.0% 2.9%
Alltel Corp. 3.9% 3.0%
Century Telephone Enterprises, Inc. 3.9% -
GTE Corp. 3.9% 2.8%
Bell Atlantic 3.8% 3.8%
Bell South Corp. 3.8% 2.9%
US West, Inc. 3.8% -
Ameritech, Corp. 3.7% -
Cinergy Corp. 3.3% -
Consolidated Edison, Inc. 3.3% -
Top Industries September 30, 1998 September 30, 1997
Electric Companies 50.3% 31.9%
Telephone Services 34.4% 32.2%
Cellular/Wireless Telecommunications 7.9% 11.5%

Schedule of Investments
September 30, 1998

Shares or Principal Amount Market Value
Common Stocks 92.6%
Cellular/Wireless Telecommunications 7.9%
10,000 Airtouch Communications
Inc.a $ 570,000
13,800 Comsat Corp. 486,450
14,600 Nextel Communications
Inc., Class Aa 294,738
27,500 Vanguard Cellular Systems
Class A 522,500
Total Cellular/Wireless
Telecommunications 1,873,688
Telephone Services 34.4%
11,800 Aliant Communications Inc.292,050
19,370 Alltel Corp. 918,019
18,600 Ameritech Corp. 888,923
18,770 Bell Alantic 911,097
12,100 Bell South Corp. 913,111
19,550 Century Telephone
Enterprises, Inc. 924,547
10,300 Frontier Corp. 281,962
16,600 GTE Corp. 914,359
21,200 SBC Communications Inc. 941,795
8,200 Telephone & Data 285,975
17,200 U S West Inc. 907,507
Total Telephone Services 8,179,345
Electric Companies 50.3%
15,700 American Electric Power
Co., Inc. 766,356
16,100 Carolina Power & Light 743,619
20,500 Cinergy Corp. 784,125
15,000 Consolidated Edison of NY 781,875
16,800 Dominion Resources Inc. 749,700
11,600 Duke Power 767,775
27,800 Edison International 714,112
24,900 Entergy Corp. 765,675
10,800 FPL Group Inc. 752,625
19,700 Houston Industries Inc. 613,162
22,800 Pacific Gas & Electric 728,175
35,900 Pacificorp 688,831
21,800 Peco Energy Co. 797,063
19,200 Public Service Enterprises754,800
25,800 Southern Co. 759,488
16,600 Texas Utilities Co. 772,937
Total Electric Companies 11,940,318

Shares or Principal Amount Market Value
Common Stocks - continued
Total Common Stocks
(Cost $19,475,648) $ 21,993,351
Short-Term Commercial Notes 11.9%
$1,174,411 American Family Demand Note
4.96% 7/26/99 1,174,411
$233,234 Pitney Bowes Demand Note
4.95% 2/3/99 233,234
$485,624 Wisconsin Electric Demand Note
4.96% 7/14/99 485,624
$936,275 Warner Lambert Demand Note
4.90% 7/26/99 936,274
Total Short-Term Commercial Notes
(Cost $2,829,543) 2,829,543
Total Investments 104.5%
(Cost $22,305,191) 24,822,894
Other Liabilities less Assets (4.5%) (1,073,752)
Net Assets 100.0% $ 23,749,142
The accompanying notes are an integral part of the financial statements.
a non-income producing security.

Transportation

Performance
ICON Transportation Fund (The "Fund") opened on May 9, 1997. The Fund's total
return since inception through 9/30/98 was (3.37%). The Standard & Poor's
Transportation Index return was 2.08% for the same period. The Fund's total
return from 10/1/97 through 9/30/98 was (22.08%). The Standard & Poor's
Transportation Index return from 10/1/97 through 9/30/98 was (14.81%).
Transportation stocks were among market leaders in 1997 and early 1998. However,
the performance of these stocks dramatically changed in April of this year. In
the second and third quarters of 1998, Transportation stocks were among the
worst performers in the market. The same cyclical characteristics that made this
a top performing sector in the prior years worked in the opposite direction the
last two quarters. Stocks in the Transportation sector were initially hurt by
news of Asian economic woes, as many of these companies have exposure to that
region. As fears that the crisis in Asia was spreading, investors soon worried
of a global economic decline. As the most recent quarter ended, domestic
economic news was pointing to a slowing U.S. economy. With these economic fears,
the cyclical nature of the Transportation stocks hurt their performance. No
industries in the Transportation sector have been immune to the recent selling
pressure, as share prices in all industries have fallen sharply. According to
Standard & Poor's industry indices, even the most defensive Transportation
industry, Railroads, was still off more than 20% from its highs. The two worst
performing industries in the sector were off more than 40% from their highs.
Furthermore, many individual stocks in the sector have lost half of their value.
The most nimble industry rotation strategy could not have avoided the declines
in the Transportation sector. In the recent decline, the two most defensive
industries in the Transportation sector have been Railroads and Auto Parts.
Currently, these two industries comprise approximately two-thirds of the Fund.
Trucking stocks, which account for the remainder of the Fund, have not fared as
well. News of slowing economic growth hit these shares hard. Industry Highlights
Auto Parts has been one of the largest industry holdings in the Fund since its
inception. The Fund currently owns twelve stocks in the Auto Parts industry,
including such names as Goodyear Tire & Rubber and Genuine Parts. Many of the
Auto Parts stocks suffered a short term setback with the General Motors strike.
Parts suppliers to General Motors were adversely affected as production was
halted and parts demand dried up. The Auto Parts industry is currently in a
phase of consolidation. As the Auto manufacturers have become more demanding
from their suppliers, Auto Parts companies have been forced to consolidate to
exploit economies of scale in bargaining with the big three. Potential merger
and acquisition activity could boost share prices and create more efficient and
competitive companies in the industry. Many good values exist within the Auto
Parts industry. The second largest holding in the Fund is in the Trucking
industry. The Trucking industry, like most Transportation industries, has seen
improving margins because of lower fuel prices. Strong freight demand and robust
consumer spending have also helped these companies. However, the market's recent
decline was not kind to Trucking stocks. The Trucking industry is composed
primarily of small capitalization companies, which have been battered in the
recent downturn. Economic fears and slowing growth in the manufacturing sector
have also hurt these shares. Based on valuation, this industry looks attractive,
and the Advisor believes the fears are overblown. Thus, recent share weakness
appears to be a good buying opportunity. Railroad stocks were approximately
one-quarter of the Fund as of September 30, 1998. The Railroad industry has held
up better than other Transportation industries in the current market turmoil.
However, many Railroad stocks continue to face short-term difficulties. Merger
troubles have adversely affected several companies in the Railroad group.
Railroad problems were highlighted by Union Pacific's news that it was slashing
its dividend. The Advisor, however, believes that most of the uncertainty and
pessimism in the industry is priced into these shares. Portfolio turnover has
occurred in two industries, Airlines and Trucks & Parts. In late 1997 and early
1998, the Airline stocks in the portfolio were sold for solid gains. Although
the fundamentals in the industry appeared to be strong, the Airline stocks were
overpriced. Excess optimism was already reflected in the share prices, and they
no longer met the Advisor's valuation criteria. Trucks & Parts stocks were sold
in early 1998 as they, too, no longer met the Advisor's investment discipline.
Both industries have been hard hit in the recent market correction. Current
Outlook Transportation stocks were among the best performers in the broad market
in 1997 and have been among the worst in 1998. Benefits of falling energy prices
have been more than offset by slowing growth in the domestic economy and worries
of contracting economies abroad. Most Transportation stocks have sold off
sharply. Valuations in the sector look attractive. Although Transportation
industries have performed worse than the broad market in the sell-off, this
should create a good buying opportunity. When these stocks bottom, considerable
upside exists from current depressed levels.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 99.4% 99.2%
Top 10 Equities (% of Net Assets) 47.5% 35.6%
Number of Stocks 29 42
Cash & Cash Equivalents 0.0% 0.9%
Top 10 Equity Holdings September 30, 1998 September 30, 1997
Burlington Northern Santa Fe Corp. 6.2% -
Werner Enterprises, Inc. 5.5% 4.1%
Landstar System Inc. 5.3% 3.2%
ITT Industries Inc. 4.6% 3.2%
Dana Corp. 4.5% 3.3%
Union Pacific Corp. 4.5% -
M S Carriers Inc. 4.4% 3.6%
Rollins Truck Leasing 4.4% -
GATX Corp. 4.3% -
Genuine Parts Co. 3.8% -
Top Industries September 30, 1998 September 30, 1997
Auto Parts & Equipment 38.2% 35.0%
Truckers 36.1% 36.3%
Railroads 25.1% 11.0%

Schedule of Investments
September 30, 1998

Shares Market Value
Common Stocks 99.4%
Auto Parts & Equipment 38.2%
19,000 Cooper Tire & Rubber Co. $ 342,000
13,618 Dana Corp. 508,122
13,800 Danaher Corp. 414,000
14,200 Genuine Parts Co. 426,887
7,200 Goodyear Tire & Rubber Co. 369,900
15,500 ITT Industries Inc. 525,062
12,500 Mark IV Industries Inc. 182,031
12,800 Modine Manufacturing Co. 371,200
11,100 OEA Inc. 105,450
12,300 Snap-On Tools Inc. 378,994
16,500 Superior Industrials
International, Inc. 377,438
7,300 TRW Inc. 323,938
Total Auto Parts & Equipment 4,325,022
Truckers 36.1%
36,800 American Frieghtways Corp. 276,000
29,200 Arnold Industries Inc. 419,750
13,100 Heartland Express Inc.a 216,150
21,300 Landstar Systems Inc.a 600,394
25,000 M S Carriers Inc.a 496,875
44,250 Rollins Truck Leasing 495,047
13,600 Ryder System Inc. 338,300
18,900 U.S. Freightways Corp. 375,637
39,375 Werner Enterprises Inc. 620,156
18,000 Yellow Corp.a 243,000
Total Truckers 4,081,309

Shares Market Value
Common Stocks - continued
Railroads 25.1%
21,900 Burlington Northern
Santa Fe Corp. $ 700,800
6,600 CSX Corp. 277,613
14,800 GATX Corp. 489,325
9,800 Kansas City Southern Inds 343,000
11,000 Norfolk Southern Corp. 319,687
11,900 Union Pacific Corp. 507,237
14,700 Wisconsin Central
Transportationa 205,801
Total Railroads 2,843,463
Total Common Stocks
(Cost $13,178,123) 11,249,794
Total Investments 99.4%
(Cost $13,178,123) 11,249,794
Assets less other Liabilities 0.6% 67,772
Net Assets 100.0% $ 11,317,566
The accompanying notes are an integral part of the financial statements.
a non-income producing security

Short-Term Fixed Income

Performance
ICON Short-Term Fixed Income Fund (The "Fund") opened on February 7, 1997. The
Fund's total return since inception through 9/30/98 was 9.94%. The Merrill Lynch
1 Year Treasury Index return was 10.46% for the same period. The Fund's total
return from 10/1/97 through 9/30/98 was 6.55%. The Merrill Lynch 1 Year Treasury
Index return from 10/1/97 through 9/30/98 was 6.36%. Fund Highlights The
objective of the Short-Term Fixed Income Fund is to attain high current income
consistent with the preservation of capital. Under
normal conditions, the Fund invests in US Treasury and agency obligations.
We are active in duration management in the Fund. High cash inflows and outflows
contributed to our decision in keeping duration throughout the year, on average,
close to the lower end of the Fund's normal operating range of 0.5-1.5. As
expected, the Federal Reserve began its slow and steady monetary policy
implementation by lowering the Federal Funds rate 0.25% in September from 5.50%
to 5.25%. In anticipation of this move, in early September we purchased Agency
coupons and discount notes into the new year and moved duration to 0.9. Current
Outlook Freespending and highly leveraged consumers have had a great year,
however, the global financial situation is likely to slow things down. Corporate
layoffs and slow wage gains loom on the consumers' psyche. The global crisis
will continue to slow the US economy, and we believe the Fed will lower rates
further in the months ahead, acting more aggressively, if necessary.

Schedule of Investments
September 30, 1998

Principal Amount Market Value
U.S. Government Agencies 92.2%
$173,000 Federal Home Loan Bank
5.3% 2/25/99 $ 169,390
$153,000 Federal Home Loan Bank
5.3% 3/08/99 $ 149,569
$4,000,000 Federal Home Loan Bank
5.8% 11/04/99 $ 4,042,024
$570,000 Federal Farm Credit Bank
5.5% 8/03/99 $ 573,013
Total U.S. Government Agencies
(Cost $4,885,760) 4,933,996
Repurchase Agreement 9.3%
$499,000 JP Morgan
5.40% dated 9/30/98,
maturing 10/1/98, to
be repurchased at
$499,075 collateralized
by $485,000 in U.S.
Treasury Notes 7.75%
due 1/31/00, value
$510,934
(Cost $499,000) $ 499,000
Total Investments 101.5%
(Cost $5,384,760) 5,432,996
Other Liabilities less Assets (1.5%) (82,948)
Net Assets 100.0% $ 5,350,048
The accompanying notes are an integral part of the financial statements.

Asia Region

Performance
ICON Asia Region Fund (The "Fund") opened on February 25, 1997. The Fund's total
return since inception through 9/30/98 was (39.10%). The Morgan Stanley Capital
International (MSCI) Pacific Index (in U.S. dollars) return was (37.66%) for the
same period. The Fund's total return from 10/1/97 through 9/30/98 was (38.73%).
The Morgan Stanley Capital International Pacific Index (in U.S. dollars) return
from 10/1/97 through 9/30/98 was (36.35%). Japan remains the heaviest weighting
in the Fund at 89.9%. The Japanese market has had brief periods of exceptional
performance this year; however, the market repeatedly falls back to a level
below which it started the rally. This market proved to be a defensive position
in the worldwide August correction. Since October 1, 1997 through September 30,
1998, the Japanese market shows 1.86% appreciation according to the MSCI Japan
in U.S. Dollars. Japanese valuations continue to look favorable; however, the
market wants to see concrete steps by the government to clean up the banking
system and address the defaulted loans. The Fund still holds small positions in
Malaysia and Hong Kong. While their positions are small, their valuations are
promising, and these holdings reduce overall Fund risk through diversification.
Malaysia was an exceptional performer in the beginning of the year as it
appreciated 29.50% through March 31, 1998 according to the MSCI Malaysia Free
Index (in U.S. Dollars). However, from January 1, 1998 through September 30,
1998, the same index lost (58.58)%. The Malaysian market is responding to
increased political uncertainty and instability. Uncertainty breeds fear in the
stock market. Country Highlights Estimates of growth in Japan continue to fall.
Japanese Gross Domestic Product is expected to contract 1.7% in 1998 and rebound
with 0.4% growth in 1999, according to the September 26th-October 2nd edition of
The Economist. The newspapers carry stories of doom every day as the Japanese
recession continues to have a negative effect on investment, spending and
bankruptcies. The market continues to fall, as the government has been unable to
construct a reasonable rescue package for the financial system. The papers have
reported bankruptcies, but the bubble economy of Japan is still overstocked with
companies. Unfortunately, the Japanese government tends to protect companies
rather than allow them to go bankrupt. As industries are reduced in number
through bankruptcy, those companies remaining tend to be most efficient.
Therefore, there is greater competition among players who produce the product in
the most efficient manner, and prices fall more in line with the cost of
production. Although a bankruptcy of larger banks might deal a significant blow
to the economy in a domino effect, many of the small to mid-sized, inefficient
companies could be allowed to fail, and the domestic economy would continue to
function. This market continues to be undervalued and only needs to find
confidence in the government to set it on a upward path. Fear and uncertainty
have taken over where valuation should be the main driver of market movement.
Once investors feel that the government has taken the correct steps to generate
a healthy economy, valuation will be recognized and the market should perform
well. The third position in the Fund, although still small, is Malaysia.
Unfortunately, Malaysia has also seen severe political instability in 1998,
which culminated in the imposition of capital controls on the Malaysian
currency, the ringitt. The Malaysian market assumed that the controls will be
beneficial, and the market turned in stunning performance for a number of days
after the controls were put in place. Current Outlook The Price to Cash Flow
Ratio is double in the U.S. what it is in Japan. Japanese interest rates
continue to be the lowest of the developed nations, and the Japanese government
has finally been forced to act as evidenced by the recent banking rescue plan
and financial deregulation. The "Big Bang" began on April 1, 1998, as the
Japanese government introduced liberalization of capital flows and deregulation
of commissions on large equity trades. The government's intent is to eventually
have loans and shareholdings determined by market forces as opposed to personal
connections. The Yen has depreciated along with the Japanese stock market.
Unfortunately, low interest rates lead to capital outflow as money searches for
a place that will pay higher rates. As the Japanese economy improves and
investors find profitable opportunities in Japan, this outflow of money should
slow and the Yen depreciation should come to a halt. And finally, as the details
of the new banking package are divulged, the markets will hopefully see that the
Japanese government does understand the need for a competitive environment.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 100.0% 97.1%
Top 10 Equity (% of Assets) 36.3% 31.2%
Number Stocks 101 138
Cash & Cash Equivalents 1.0% 2.9%
Top 10 Equity Holdings September 30, 1998 September 30, 1997
Nippon Telephone & Telegraph Corp. 7.9% -
Toyota Motor Corporation 6.7% 5.4%
Bank of Tokyo-Mitsubishi Ltd. 3.6% 2.4%
Mitsubishi Heavy Industries, Ltd. 2.8% -
Hitachi 2.7% -
Matsushita Electric
Industrial Co, Ltd. 2.7% 2.4%
Kinki Nippon Railway 2.6% -
Sumitomo Bank, Limited 2.6% 2.4%
Kyocera Corporation 2.4% -
Sony Corp. 2.3% -
Top Countries September 30, 1998 September 30, 1997
Japan 89.9% 79.2%
Hong Kong 5.6% 6.3%
Malaysia 4.5% 4.0%

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 Funds are since the inception of
the Fund through the dates shown. The returns are total returns, and include the
reinvestment of dividends and capital gains. International investing involves
greater risk than U.S. investments which include 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.

Schedule of Investments
September 30, 1998

Shares Market Value
Common Stocks & Warrants 100.0%
Hong Kong 5.6%
27,400 Bank of East Asia $ 38,721
37,000 Cathay Pacific Airways 34,858
34,000 Cheung Kong Holdings 157,527
4,000 Cheung Kong Infrastructure 8,673
22,000 CLP Holdings Ltd. 107,324
40,000 Chinese Estates HL 4,543
4,000 Citic Pacific Ltd. 7,021
6,500 Dickson Concepts Intl. 5,075
3,000 Guoco Group Ltd. 1,587
30,000 Hang Lung Dev. Co. 26,328
29,100 Hang Seng Bank 184,023
29,000 Hong Kong & Shanghai
Hotels 16,093
131,200 Hong Kong Telecom 258,218
63,700 Hong Kong & China Gas 78,099
88,000 Hopewell Holdings 8,858
54,000 Hutchison Whampoa Ltd. 284,339
23,000 Hysan Development 15,880
11,000 Miramar Hotel 7,808
13,000 New World Development 17,449
27,000 Shangri La Asis Ltd. 17,423
74,000 Shun Tak Holdings 4,584
40,434 Sun Hung Kai Properties 143,242
40,500 Swire Pacific Ltd. 19,078
6,000 Television Broadcast 15,332
40,000 Wharf Holdings 42,331
2,300 Wharf Holdings Warrants 44
Total Hong Kong 1,504,458

Shares Market Value
Common Stocks & Warrants - continued
Japan 89.9%
69,000 All Nipon Airways Company $ 223,039
119,000 Asahi Glass Co. Ltd. 576,991
154,000 Bank of Tokyo-Mitsubishi Ltd 989,935
25,000 Bridgestone Corp. 505,069
23,000 Canon Inc. 468,043
7,300 Chubu Electric Power Co. 117,180
41,000 Dai Nippon Printing Co. Ltd 527,711
80 East Apan Railway 399,647
13,000 Fuji Photo Film 448,869
54,000 Fujitsu Ltd. 468,116
168,000 Hitachi 740,523
14,000 Honda Motor Company 426,829
175,000 Industrial Bank of Japan Ltd. 642,815
11,000 Ito-Yokado Co. Ltd. 525,272
14,800 Kansai Electric Power 256,053
325,000 Kawaski Steel Corporation 382,016
163,000 Kinki Nippon Railway 707,706
65,000 Kirin Brewery Co. Ltd. 521,452
15,000 Kyocera Corp. 656,773
291,000 Marubeni Corporation 344,189
55,000 Matsushita Electric
Industrial, Ltd. 749,522
104,000 Mitsubishi Corporation 504,261
63,000 Mitsubishi Estate Co. Ltd. 413,304
224,000 Mitsubishi Hvy Indysa 768,498
186,000 Mitsubishi Motors Corp.a 307,449
34,000 Denso Corporation 495,812
72,000 Mitsui Fudosan 369,733
86,000 NEC Corporation 559,139
338,000 Nippon Steel Company 486,688
299 Nippon Telephone
& Telegraph Corp. 2,185,608
135,000 Nissan Motor Company 376,873
71,000 Nomura Securities Co. 511,167
20,000 Sanyo Company Ltd. 443,726
4,000 Seven Eleven Japan 244,784
84,000 Sharp Corporation 501,704
9,300 Sony Corporation 648,376
103,000 Sumitomo Bank, Ltd. 718,851
24,000 Takeda Chemical 643,550
59,000 Tokio Marine & Fire
Insurances 528,798
20,900 Tokyo Electric Power 400,742
105,000 Toshiba Corp. 378,747
83,000 Toyota Motor Corporation 1,859,756
Total Japan 24,025,316

Shares Market Value Common Stocks & Warrants - continued Malaysia 4.5% (See Note
4)
33,800 AMMB Holdings Berhad $ 13,262
10,400 Berjaya Sports Toto Berhad 5,747
21,000 Commerce Asset-Holdings
Berhad 5,919
27,000 Edaran Otomobil Nasional BHD 20,293
140,400 Ekran Berhad 21,208
88,000 Golden Hope Plantations 38,419
36,000 Hicom Holdings Berhad 7,228
109,000 Hong Leong Bank Berhad 34,134
47,000 Hume Industries Berhad 16,363
36,000 Jaya Tiasa Holdings Berhad 18,038
57,000 Kuala Lumpur Kepon Berhad 44,730
192,500 Magnum Corp Berhad 37,233
7,300 Malakoff Berhad 6,266
124,000 Malayan Banking Berhad 89,998
66,000 Malaysian International
Shipping 46,443
66,333 Malaysian Resources Corp. 10,508
70,500 Naluri Berhad 6,428
15,200 Nestle (Malaysia) Berhad 38,080
30,000 New Straits Times Press 10,113
32,500 Oriental Holdings Berhad 24,067
39,000 Perusahaan Otomobil
Nasional 21,409
24,500 Petronas Gas Berhad 29,110
94,400 Public Bank Berhad 15,998
39,000 Rashid Hussain BHD 13,793
96,000 Renong Berhad 17,065
72,000 Resorts World Berhad 45,095
85,000 RHB Capital Berhad 24,426
18,200 Rothmans of Pall Mall
Berhad 54,983
157,000 Sime Darby Malay Regd 73,459
205,500 Telekom Malaysia 227,132
196,000 Tenaga Nasional Berhad 132,145
50,500 United Engineers Berhad 19,628
69,000 YTL Corp. Berhad 37,885
Total Maylasia 1,206,605

Shares Market Value
Common Stocks & Warrants - continued
Total Common Stocks & Warrants
(Cost $39,353,565) 26,736,379
Total Demand Deposits 1.0%
4.797% Chase Bank Interest
Bearing Demand Deposit
(Cost $262,630) 262,630
Total Investments 101.0%
(Cost $39,616,195) 26,999,009
Other Liabilities less Assets (1.0%) (269,340)
Net Assets 100.0% $ 26,729,669
The accompanying notes are an integral part of the financial statements.
a non-income producing security.

Summary of Investments by Industry
% of Investments
Airlines 0.90%
Auto Equip 0.30%
Automobiles 11.10%
Banks 9.60%
Cash 0.20%
Chemicals 1.60%
Computers 3.70%
Construction Materials 0.20%
Construction 0.20%
Electronic Components 6.90%
Electronic Materials 10.00%
Engineering 0.70%
Financial Services 2.20%
Food 2.00%
Glass 2.10%
Hotel/Tourist 0.20%
Industrial Equipment 2.90%
Insurance 1.90%
Leisure ` 0.30%
Multi-Industry 1.90%
Oil Production 0.10%
Pharmacy 4.00%
Press Print 2.10%
Real Estate 4.50%
Sea Transportation 0.50%
Special Retail 2.80%
Steel Metal 3.20%
Telecommunications 9.30%
Textiles 0.10%
Tires & Rubber 1.80%
Tobacco 0.20%
Trading 3.20%
Transportation 4.20%
TV, Radio 0.10%
Water Distribution 4.90%
Wholesale 0.10%
Total 100.0%
The accompanying notes are an integral part of the financial statements.

North Europe Region

Performance
ICON North Europe Region Fund (The "Fund") opened on February 18, 1997. The
Fund's total return since inception through 9/30/98 was 18.34%. The Morgan
Stanley Capital International (MSCI) Europe 15 Index (in U.S. dollars) return
was 28.49% for the same period. The Fund's total return from 10/1/97 through
9/30/98 was 7.00%. The Morgan Stanley Capital International Europe 15 Index (in
U.S.
dollars) return from 10/1/97 through 9/30/98 was 6.61%.
August and September saw corrections in the markets of Europe. The MSCI Europe
15 Index was down 12.70% in August and down 4.14% in September. Many of the
markets held in the Fund outperformed this index. The MSCI German Index in U.S.
Dollars fell 16.5% in August but fared better in September and lost only 1.4%.
The MSCI United Kingdom Index in U.S. Dollars lost 7.46% in August and only
2.27% in September. The MSCI Denmark Index in U.S. Dollars lost 11.31% in August
and 4.55% in September. Sweden was one country that was not defensive in this
market. In August, the MSCI Sweden Index in U.S. Dollars was down 15.38% and in
September, the same index was down 8.82%. Sweden, at September 30, 1998, was
only 8% of the Fund. Country Highlights Germany is the largest country holding
in the Fund. Although one of the key participants in the coming Euro conversion
and in the existing European Union (EU), Germany has lately been consumed by
internal politics. September 27, 1998 marked a national election for the
ministers in the Bundestag and for the favored party to be in power. In an
historic vote, Gerhard Schroeder was elected as Chancellor, and Helmut Kohl was
the first sitting German Chancellor to lose an election for the Chancellorship.
Schroeder is willing to push ahead with the Euro conversion, but still his
election introduces uncertainty about the German economy. This uncertainty along
with the global economic turmoil has created a sense of fear in the German
market. Again, the German market is undervalued and has the potential to be a
leader in the coming months. Sweden has also just completed an election. There
may be less optimism in Sweden as the populace has chosen to refrain from
participation in the first round of the European Monetary Union (EMU). There is
a call for a Swedish referendum on the single currency. However, valuations in
Sweden tell the same story as valuations in Germany. The Swedish market has
declined due to fear and uncertainty about the election. The depreciation is
overdone; and Sweden is undervalued. Great Britain and Denmark will also remain
outside the EMU for the first round. The UK has been feeling the pressure of the
Asian recessions more acutely than has Denmark; but both have been affected.
Fears of global deflation and global recession have taken their toll on these
markets; however, the UK and Denmark have maintained somewhat healthy economies
as they are keeping their options open for membership in the EMU. For now, they
are members of the ERM (European Rate Mechanism) and the EU. These markets are
undervalued, and investors should recognize their potential in the coming year.
The Current Outlook Investors have yet to see the fallout from the German and
Swedish elections. Will their economies and markets react well to new government
policies? Wait-and-see will be the approach taken; however, analysts are still
pricing the individual companies well. Interest rates remain low, and there is
untold potential with the coming Euro conversion. The European markets have had
a difficult third quarter which has taken away most of the gains from the first
half of the year, and now investors need to stop panicking. The European markets
have not reached fair value. They have much more room to appreciate. The main
theme in the coming months will be conversion to the Euro. Will it go smoothly?
Will the public see the benefits, or will they never come to fruition? Will the
European Central Bank work as expected and keep inflation in check? These are
only a few questions; there are many more. Investors need to remain focused on
those countries that are undervalued, ignoring the potential benefits or
consequences of the Euro. Interest rates are low, and prices are far below what
is fair value given expectations for earnings. These markets, both those
converting to Euro and those not converting, should do well over the next year.
The Euro conversion is something that is new to modern economies. There is some
risk that positions in the Fund will lose some value from the currency
conversion itself. Exchange rate targets were set on May 2, 1998, and exchange
rates will be fixed before the conversion. However, results are uncertain.
Please be aware of this potential.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 96.5% 98.0%
Top10 Equity (% of Assets) 25.4% 31.9%
Number Stocks 150 118
Cash & Cash Equivalents 4.2% 2.5%
Top 10 Equity Holdings September 30,1998 September 30,1997
Den Danske Bank Group 4.1% 5.2%
Allianz AG 3.3% 2.9%
D/S Svenborg 3.1% 5.2%
TeleDanmark 2.7% -
Deutsche Telekom AG 2.3% -
Danisco A/S 2.1% 2.7%
British Petroleum PLC 2.1% -
Sophus Berendsen 2.0% 2.3%
Siemens AG 1.9% 2.1%
Glaxo Well 1.8% 4.7%
Top Countries September 30, 1998 September 30, 1997
Germany 32.3% 36.6%
United Kingdom 24.8% 7.5%
Denmark 24.7% 40.0%
Sweden 8.2% -
Belgium 6.5% 13.9%

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 Funds are since the inception of
the Fund through the dates shown. The returns are total returns, and include the
reinvestment of dividends and capital gains. International investing involves
greater risk than U.S. investments which include 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 dividends and does not
reflect deductions for commission, management fees and all expenses. Individuals
cannot invest in the index itself.

Schedule of Investments
September 30, 1998

Shares Market Value
Common Stocks 96.5%
Belgium 6.5%
405 Barco NV (Belgium American
Radio Corp.) $ 95,115
118 Bekaert NV 63,465
1,180 Ciementeries CBR 90,835
1,652 Delhaize-Le Lion 124,774
1,701 Electrabel SA 670,734
996 Fortis AG 245,462
781 Gevaert NV 48,459
346 Glaverbel SA 41,632
602 Groupe Bruxelles Lambert 100,188
3,390 KBC Bancassurance Holding 219,185
872 Petrofina SA 319,826
2,710 Solvay Et Cie NPV 180,719
2,050 Tractebel NPV 332,850
1,196 Union Miniere NPV 46,606
Total Belgium 2,579,850
Denmark 24.7%
3,020 Bang & Olufsen Holdings 204,343
3,197 Bikuben Girobank A/S 166,013
10,147 Carlsberg 590,187
5,252 Cheminova A/S B 99,172
946 Codan Forsikring 119,206
1,610 D/S Norden 139,339
75 D/S 1912 B 489,772
125 D/S Svenborg 1,219,512
12,594 Danisco A/S 852,151
14,313 Den Danske Bank Group 1,621,614
826 Det Danske Traelastkompagni71,487
8,966 Fin Industri Handvaerk A/S191,425
1,819 Finansieringsselsk Gefion 30,206
15,787 FLS Industries 332,881
3,811 ISS International Service
System 200,895
448 Jyske Bank 36,658
3,729 Korn OG Foderstofkomp 85,083
1,478 Lauritzen Holdings 125,589
5,891 Novo Nordisk A/S 709,145
4,250 Potagua 96,489
5,268 Radiometer 232,439
20,919 Sophus Berendsen 809,768
1,679 Sydbank 76,618
10,615 Tele Danmark 1,053,983
822 Topdanmark 120,293
5,360 Tryg Baltica Forsikring 139,166
Total Denmark 9,813,434
Germany 32.3%
1,312 Adidas Solomon AG 150,322
4,270 Allianz AG 1,323,358
177 Allianz
Lebensversicherungs AG 109,606
1,010 Altana AG 62,543
13,583 BASF AG 514,421
4,417 Bayer Hypo-Vereinsbank 325,051
13,615 Bayerische AG 514,004

Shares Market Value
Common Stocks - continued
Germany - continued
146 Bayerische Motoren
Werke AG $ 93,903
29 Bayerische Motoren
Werke AG (New) 18,218
2,501 Beiersdorf AG 139,161
7,911 Commerzbank AG 213,939
8,387 Daimler Benz AG 701,509
2,515 Degussa AG 107,588
10,411 Deutsche Bank AG 537,555
29,577 Deutsche Telekom AG 918,419
10,384 Dresdner Bank AG 386,433
1,640 Heidelberger Zement AG 108,424
5,152 Henkel KGAA 372,205
3,179 Hochtief AG 91,296
3,539 Hoechst AG 146,100
403 Karstadt AG 197,232
236 Linde AG 137,669
7,809 Lufthansa 154,227
525 MAN AG 168,990
6,730 Mannesmann AG 616,064
4,957 Metro AG 344,920
1,600 Muenchener Reuckver AG 705,516
509 Preussag AG 175,869
7,007 RWE AG 325,112
1,104 SAP AG 467,651
1,563 Schering AG 161,546
13,427 Siemens AG 741,481
924 Thyssen AG 157,501
10,593 Veba AG 551,389
305 VEW AG 96,715
789 Viag AG 541,924
6,180 Volkswagen AG 445,549
Total Germany 12,823,410

Shares Market Value
Common Stocks - continued
Sweden 8.2%
5,600 ABB AB Series B Shares $50,392
12,300 ABB AS A Shares 111,468
2,700 AGA AB Series A Shares 35,152
3,500 AGA AB Series B Shares 43,334
6,400 Astra AB B Shares 105,380
29,900 Astra AB-A 511,405
3,200 Atlas COPCO AS Series A
Shares 67,394
2,000 Atlas COPKO AB SER B
Shares 42,121
2,300 Diligentia AB 19,523
2,800 Drott AB SER B 22,873
8,000 Electrolux AB SER B
SWKR 5 105,176
1,600 Esselte AB SER A SHS 23,894
1,600 Esselte AB SER B SHS 24,711
35,400 Ericsson LM-B Shares 668,734
1,100 Granges AB 13,338
3,000 Hennes & Mauritz AB SER B 218,265
2,100 OM Gruppen AB 36,186
1,500 Securitas AB SWKR2 SER B 76,967
15,000 Skandia Forsakrings AB 195,290
10,900 Skandinaviska Enskilda Ban 95,303
2,800 Skanska AB Series B Shares 92,386
2,800 SKF AB Series A Shares 35,382
3,000 SKF AB Series B Shares 37,143
1,800 SSAB Svenskt Stal AB
SER A 18,955
1,100 SSAB Svenskt Stal AB
SER B 11,373
5,100 Stora Kopparbergs SER A
Shares 48,497
900 Stora Kopparbergs SER B
Shares 8,558
5,200 Svenska Cellulosa AB
SER B S 102,878
4,500 Svenska Handelsbanken-A
SHS 168,869
22,200 Swedish Match AB SEK2 69,140
3,300 Trelleborg AB SER B
SWKR25 27,800
3,100 Volvo SS 73,598
3,300 Volvo AB-B 80,875
Total Sweden 3,242,360

Shares Market Value
Common Stocks - continued
United Kingdom 24.8%
16,349 Allied Zurich PLC 167,260
17,092 Barclays PLC 279,140
20,097 Bass PLC 240,783
22,084 BG PLC 153,499
18,367 Boots Co. PLC 316,193
22,344 British Aerospace PLC 135,561
16,349 British American Tobacco
PLCa 121,764
26,010 British Airways PLCa 159,129
54,495 British Petroleum PLC 833,498
27,189 British Sky Broadcasting
PLC 231,492
41,980 British Telecommunications
PLC 565,745
20,000 BTR PLC B Shares 11,216
15,547 CGU PLCa 240,828
84,396 BTR PLCa 152,390
29,045 Cable Wireless PLC 276,911
8,000 Cadbury Schweppes PLC 103,598
15,386 Diageo PLC 146,426
24,718 Glaxo Wellcome PLCa 729,656
19,582 Granada Group PLCa 246,260
11,230 Great Universal Stores PLC127,867
24,808 Land Securities PLC 384,496
46,568 Lloyds TSB Group PLC 521,529
40,227 Marks & Spencer PLC 309,002
11,545 National Power PLC 105,163
9,222 National Westminster
Bank PLC 123,810
23,643 Prudential Corp. PLC 345,546
15,737 Rueters Group PLC 132,116
24,206 Rio Tinto PLC 288,573
7,795 Sainsbury (J) PLC 74,647
14,287 Scottish Power PLC 138,395
33,054 Shell Transport & Trading
Co. PLC 200,117
25,656 Siebe PLC 82,841
47,474 Smithkline Beecham PLC 521,994
86,128 Tesco PLC 244,436
19,878 Thorn EMI PLC 122,542
32,172 Unilever PLC 275,285
25,814 United Utilities PLC 417,197
24,029 Wolseley PLC 122,507
11,009 Yele Catto & Co. PLC 42,844
5,142 Zeneca Group PLC 181,769
Total United Kingdom 9,874,025
Total Common Stock
(Cost $38,154,182) 38,333,079
Demand Deposit 4.2%
4.797% Chase Bank Interest
Bearing Demand Deposit
(Cost $1,664,863) 1,664,863
Total Investments 100.7%
(Cost $39,819,045) 39,997,942
Other Liabilities less Assets (0.7%) (271,971)
Net Assets 100.0% $ 39,725,971
The accompanying notes are an integral part of the financial statements.
a non-income producing security.

Summary of Investments by Industry
% of Investments
Airlines 0.80%
Alcohol Beverage 0.40%
Animal Feed 0.20%
Automobile 3.50%
Banks 12.50%
Breweries 2.10%
Cash 3.50%
Cement 0.50%
Chemcials 5.20%
Computer Services 1.20%
Construction 0.20%
Construction Material 0.50%
Cosmetics 0.40%
Defense 0.30%
Department Stores 2.20%
Electric Materials 2.60%
Engineering 2.70%
Financial Services 0.70%
Food 2.80%
Food Retail 1.10%
Glass 0.10%
Holding 2.80%
House Equipment 0.30%
Industrial Equipment 0.50%
Industrial Gas 0.20%
Industrial Services 2.20%
Insurance 8.50%
Leisure 0.90%
Medical Equipment 0.60%
Multi Industry 1.50%
Non Alcoholic Beverage 0.30%
Non Ferrious Metals 1.90%
Office Equipment 0.20%
Oil Integrated 3.40%
Pharmacy 7.60%
Pulp & Paper 0.50%
Real Estate 1.00%
Sea Transportation 5.00%
Services 0.60%
Shoes 0.50%
Specialty Retailers 1.10%
Steel Metal 0.50%
Telecommunications 8.80%
Textiles 0.70%
Tobacco 0.60%
TV and Radio 0.70%
Water Distributors 5.60%
Total 100.00%
The accompanying notes are an integral part of the financial statements.

South Europe Region

Performance
ICON South Europe Region Fund (The "Fund") opened on February 20, 1997. The
Fund's total return since inception through 9/30/98 was 26.27%. The Morgan
Stanley Capital International (MSCI) Europe 15 Index (in U.S. dollars) return
was 28.47% for the same period. The Fund's total return from 10/1/97 through
9/30/98 was 6.11%. The Morgan Stanley Capital International Europe 15 Index (in
U.S.
dollars) return from 10/1/97 through 9/30/98 was 6.61%.
The countries held in the Fund have not changed since the Fund opened. However,
the country weightings have been altered. When the Fund opened, Italy deserved
the largest weighting. Italy now holds a smaller position, and Switzerland is
the largest holding. Over the past year, the MSCI Italy Index in U.S. Dollars
appreciated 27.61% before dividends. Italy has certainly been an exceptional
performer; however, the valuations indicated that stocks in Italy were slightly
overvalued and so, the move to Switzerland. Austria has also been a member of
the Fund since inception, although its position is the smallest. From December
31, 1997 through September 30, 1998, the MSCI Austrian Index in U.S. Dollars
depreciated 8.15% before dividends. Austria was another exceptional addition to
the Fund before the August and September corrections in Europe. Austria and
Italy both stand to benefit greatly from the upcoming conversion to the Euro;
their markets reflected this until they became slightly overvalued. However, the
August and September corrections brought many countries in Europe back into
undervalued territory. Country Highlights Switzerland is just beginning an
economic recovery. The Swiss economy stagnated through most of the 1990s.
Forecasters began to predict growth last year; and now, growth is forecast at 2%
for 1998, as compared with 1.7% for 1997. Demand from Western Europe and the
U.S. has so far offset Asian losses. Unemployment is falling, and as a result,
consumer demand is improving. This news is very good because the recovery, until
now, has been export led. As Asia falls deeper into recession, export-demand is
in further danger. For instance, demand for luxury goods is down. Domestic
consumer demand can help take up the slack where Swiss exports are not
competitive. Italy is one of those countries embarking on the Euro conversion in
1999. The Italian economy has much improved over the last year as Italy fought
to fulfill the Maastricht criteria to be one of the founding members of the
Euro. The budget deficit is improved, and interest rates are low as investors
have moved out of the stock market and into 12-month Italian treasury bills.
However, until the August-September correction, the Italian market looked
slightly overvalued. The Italian economy is growing more slowly than expected in
1998. Italian exports are suffering from the Asian and Russian crises. So there
are still uncertainties in the Italian economy and the Italian market; however,
investors overreacted in the recent correction, and Italy looks undervalued once
again. Austria is the final position in the Fund. It has also become more
undervalued with the recent correction. Austria was carried, in the beginning of
this year, by positive expectations for the Euro. August and September then saw
depreciation in Austria due to concern about exposure to Russia and Asia. As
with Italy, that concern is overdone. Valuations in Austria are promising. The
Austrian percentage of the Fund remains small but substantial, as performance
expectations are favorable. The Current Outlook Looking ahead, the ICON South
Europe Fund will handle a number of pressures in the beginning of 1999.
Switzerland will react differently than will Austria or Italy. Switzerland is
not a member of the European Union and will not be converting to the Euro.
Although the Swiss economy is on the right track and the stocks are undervalued,
there is a chance that investors will fear the reaction of the Swiss market to
the loss of competitiveness from Euro conversion. There is value in Switzerland,
and the Fund will maintain its holding as the market should realize the
potential appreciation. Italy has certainly become more attractive since the
recent correction. The Italian market should benefit from the Euro conversion.
The story is the same in Austria. Euro conversion should benefit the Austrian
economy and, although Austria has been hurt by its exposure to Eastern Europe,
the potential recovery should also benefit the Austrian economy. The Euro
conversion is something that is new to modern economies. There is some risk that
positions in the Fund will lose some value from the currency conversion itself.
Exchange rate targets were set on May 2, 1998, and exchange rates will be fixed
before the conversion. However, results are uncertain. Please be aware of this
potential.

Portfolio Profile September 30, 1998 September 30, 1997
Equities 93.5% 99.1%
Top10 Equity (% of Assets) 55.8% 46.5%
Number Stocks 64 74
Cash & Cash Equivalents 6.6% 1.3%
Top 10 Equity Holdings September 30, 1998 September 30, 1997
Novartis 12.3% 7.4%
Nestle SA 11.0% 3.7%
Ente Nazionale Idrocarburi 5.4% 7.6%
RocheHolding AG 5.0% 5.8%
Schw Ruckversicherungs AG 4.7% -
UBS AG 4.7%
Credit SuisseGroup 4.4% -
Telecom Italia Mobile 2.9% 4.6%
Telecom Italia SPA 2.8% 5.7%
Assicurazioni Generali 2.6% 5.0%
Top Countries September 30, 1998 September 30,1997
Switzerland 50.9% 33.1%
Italy 29.4% 54.7%
Austria 13.2% 11.3%

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 Funds are since the inception of
the Fund through the dates shown. The returns are total returns, and include the
reinvestment of dividends and capital gains. International investing involves
greater risk than U.S. investments which include 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 all expenses. Individuals
cannot invest in the index itself.

Schedule of Investments
September 30, 1998

Shares Market Value
Common Stocks 93.5%
Austria 13.2%
368 Austria Micro Systeme $ 14,004
1,810 Austrian Airlines 56,181
4,906 Bank Austria AG 210,268
464 Bau Holdings AG 24,464
998 Boehler-Uddeholm 43,283
626 Brau Union Goess Reininghaus 33,804
349 BWT AG 58,763
312 EA Generali AG 59,697
1,448 Erste Bank Der
Oesterreichischene 70,187
427 EVN Energie Versorgung 63,759
1,115 Flughafen Wien AG 45,465
465 Lenzing AG 24,082
697 Mayr Meknholf Karton AG 31,384
170 Oesterreichische Brau 8,748
702 Oesterreichische Elektriz 111,544
1,799 OMV AG 161,108
929 Radex Heraklith 30,336
861 VA Technologie AG 78,050
179 Versicherungsanstalt Der 15,983
289 Voest Alpine Stahl AG 7,756
476 Wienerberger Baustoffindustrie 91,886
100 Wolford AG 5,978
Total Austria 1,246,730
Italy 29.4%
7,386 Assicurasioni Generali 240,024
11,576 Banca Commerciale Italiana 69,528
15,127 Banco Intesa SPA 63,622
5,004 Banco Popolare Di Milano 36,036
20,980 Bennetton Group SPA 31,614
29,339 Credito Italiano SPA 122,153
5,227 Edison SPA 39,730
83,089 Ente Nazionale Idrocarburi 508,857
63,286 Fiat SPA 161,619
7,769 Instituto Bancario San
Paolo D'Torino 97,556
3,971 Instituto Mobiliare Italiano SPA 52,388
50,369 INA - Institut Naz Assicur. 128,022
15,178 Italgas SPA 65,123
19,307 Mediaset SPA 129,399
2,683 Mediobanca SPA 24,680
76,167 Montedison SPA 72,735
37,591 Parmalat Finanziaria SPA 55,393
41,564 Pirelli SPAa 110,170
4,844 Rinascente LA SPA 42,447
3,000 Riunione Adriatica Di
Sicurta SPA 31,580
6,456 Sirti SPA 31,255
85,715 Telecom Italia Mobile 275,437
23,067 TIM SPA 134,288
37,615 Telecom Italia SPA 258,931
Total Italy 2,782,587

Shares Market Value
Common Stocks - continued
Switzerland 50.9%
218 Adecco SA $ 80,787
90 Alusuisse-Lonza 85,755
3,745 Credit Suisse Group 413,917
165 Danzas Holding AG 41,301
27 Grands Magasins Jelmoli SA 31,402
140 Holderbank Financiere
Glarus 143,610
515 Nestle SA 1,024,568
714 Novartis 1,144,525
43 Roche Holdings AG 462,833
155 Sairgroup 31,855
223 Schw Ruckversicherungs AG 442,198
45 Schindler Holding 55,523
591 SMH Neuenburg 87,521
105 Swatch Group AG 75,926
123 Sulzer Gebuder AG 60,865
2,165 Union Bank of Switzerland AG 422,271
141 Valora Holdings AG 31,830
345 Zurich Allied AG 171,217
Total Switzerland 4,807,904
Total Common Stocks
(Cost $10,798,460) 8,837,221
Demand Deposit 6.6%
4.797% Chase Bank Interest
Bearing Demand Deposit
(Cost $623,922) 623,922
Total Investments 100.1%
(Cost $11,422,382) 9,461,143
Other Liabilities less Assets (0.1%) (9,487)
Net Assets 100% $ 9,451,656
The accompanying notes are an integral part of the financial statements.
a non-income producing security.

Summary of Investments by Industry
% of Investments
Airlines 0.90%
Automobile Equipment 0.30%
Automobile 1.70%
Bank 18.40%
Breweries 0.60%
Cash 5.90%
Cement Producers 1.50%
Chemicals 0.90%
Consumer Goods 0.90%
Construction Materials 2.70%
Construction 0.30%
Department Stores 0.60%
Electronic Materials 0.20%
Engineering 0.80%
Food 12.10%
Food Retail 0.30%
Holding 1.00%
Industrial Equipment 1.20%
Industrial Services 0.80%
Insurance Companies 10.30%
Non Ferrious Metals 0.90%
Oil Integrated 6.60%
Pharmacy 17.10%
Pulp & Paper 0.30%
Steel Metal 0.60%
Telecommunications 7.10%
Temporary Work 0.90%
Textiles 0.40%
Tires/Rubber 0.50%
Transportation 1.00%
TV, Radio 0.30%
Water Distribution 2.90%
Total 100.00%
The accompanying notes are an integral part of the financial statements.

ICON FUNDS

Statements of Assets and Liabilities

As of September 30, 1998
<TABLE>
<CAPTION>

ICON Basic ICON Consumer ICON Energy ICON Financial ICON Healthcare
Materials Fund Cyclicals Fund Fund Services Fund Fund
<S> <C> <C> <C> <C> <C>
Assets
Investments at cost $ 20,913,772 $ 68,154,307 $ 20,118,261 $ 19,971,227 $ 28,703,592

Investments at value 17,334,477 48,397,484 12,303,863 17,187,236 30,876,064

Foreign Currencies (Cost $13,253) - - - - -
Cash 1,023 - - - -
Receivables:
Investments sold - 1,160,256 327,083 363,848 323,279
Fund shares sold 17,161 54,730 16,476 21,399 28,281
Interest 1,104 713 392 605 1,812
Dividends 9,825 34,213 13,844 37,525 23,036
Deferred organizational expenses 13,915 13,915 - 13,914 13,057
Due from administrator - - - - -
Total Assets 17,377,505 49,661,311 12,661,658 17,624,527 31,265,529
Liabilities:
Payables:
Due to Custodian bank - 508,853 285,633 361,066 12,075
Investments purchased - - - - -
Fund shares redeemed 21,850 52,706 8,464 12,623 35,422
Advisory fee 13,982 43,472 10,522 15,535 26,480
Fund accounting, custodial and
transfer agent fees 4,534 13,324 3,290 4,908 8,081
Administration fee 762 2,183 557 822 1,431
Distributions due to shareholders - - - - -
Due to redeemed shareholders - - - - -
Accrued Expenses 18,434 37,950 18,634 19,039 28,691
Total Liabilities 59,562 658,488 327,100 413,993 112,180
Net Assets $ 17,317,943 $ 49,002,823 $12,334,558 $17,210,534 $31,153,349
Shares Outstanding (unlimited
shares authorized, no par value) 2,630,517 6,229,576 1,943,434 1,837,793 2,735,408
Net Asset Value (Offering price
and redemption price per share) $6.58 $7.87 $6.35 $9.37 $11.39
</TABLE>
<TABLE>
<CAPTION>

ICON Leisure ICON Technology ICON Telecomm & ICON Transpor- ICON Short-Term ICON Asia ICON N. Europe ICON S. Europe
Fund Fund Utilities Fund tation Fund Fixed Income Fund Region Fund Region Fund Region Fund
<S> <C> <C> <C> <C> <C> <C> <C>
$ 48,898,731 $74,961,856 $ 22,305,191 $13,178,123 $ 5,384,760 $39,616,195 $39,819,045 $ 11,422,382

53,185,427 60,052,810 24,822,894 11,249,794 5,432,996 26,999,009 39,997,942 9,461,143

- - - - - - 14,004 -
14,731 5,599 - - 223 - - -

1,173,255 528,480 - 364,543 - - - -
43,689 54,730 20,559 17,460 3,487 12,833 14,278 3,849

3,919 6,024 4,269 225 99,746 21,942 16,133 15,896

153,120 8,823 32,592 14,268 - 89,181 105,271 39,041

13,914 13,057 13,915 13,915 13,057 13,057 13,057 13,057

- - - - - - - 109,000

54,588,055 60,669,523 24,894,229 11,660,205 5,549,509 27,136,022 40,160,685 9,641,986

- - - 305,025 - 166,357 185,891 62,347

- - 1,086,843 - - - - -

64,119 65,768 12,107 7,914 15,714 79,787 91,829 26,489
44,919 51,084 15,795 10,288 3,059 26,616 34,112 8,689
13,538 14,922 6,629 3,012 2,101 105,101 93,429 72,468
2,351 2,643 830 521 324 1,414 1,780 468
- - - - 36,271 - - -
- - - - 127,000 - - -
36,707 41,205 22,883 15,879 14,992 27,078 27,673 19,869
161,634 175,622 1,145,087 342,639 199,461 406,353 434,714 190,330
$ 54,426,421 $60,493,901 $ 23,749,142 $ 11,317,566 $ 5,350,048 $26,729,669 $ 39,725,971 $ 9,451,656

4,616,795 6,577,089 1,676,644 1,197,486 546,662 4,390,994 3,415,845
</TABLE>

The accompanying notes are an integral part of the financial statements

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 Fund on
that day, cash, any receivables (dividends declared not paid, interest due to
the Fund but not paid, securities sold but not settled, and Fund shares
purchased by investors but not settled). The liabilities may consist of payables
for expenses incurred but not yet paid, Fund 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 Fund shares outstanding.

Statements of Operations

For the periods ended September 30, 1998
<TABLE>
<CAPTION>

ICON Basic ICON Consumer ICON Energy ICON Financial ICON Healthcare
Materials Fund(b) Cyclicals Fund(b Fund(a) Services Fund(b) Fund(b)
<S> <C> <C> <C> <C> <C>
Investment Income:
Interest $ 89,684 $ 89,324 $ 71,244 $ 43,937 $ 90,773
Dividends 301,255 315,190 337,497 431,695 533,183
Foreign taxes withheld (9,323) - (7,912) (203) -
Total investment income 381,616 404,514 400,829 475,429 623,956
Expenses:
Advisory fees 272,115 397,733 194,049 283,463 567,600
Fund accounting, custodial and
transfer agent fees 44,347 69,050 35,667 45,846 85,615
Administration fees 13,937 19,590 9,441 13,888 27,774
Audit fees 6,280 17,764 4,480 6,238 11,273
Registration fees 10,112 17,287 11,920 9,953 11,168
Legal fees 2,373 3,230 1,928 2,727 5,849
Insurance expense 1,069 1,850 1,440 1,220 2,057
Amortization of deferred
organizational expenses 3,683 3,683 - 3,683 3,683
Trustees fees & expenses 854 1,293 637 925 1,842
Shareholder reports 4,980 13,017 4,666 5,499 9,281
Other expenses 1,221 2,103 16,929 4,201 (25,795)
Total Expenses 360,971 546,600 281,157 377,643 700,347
Fees and expenses reimbursed - - - - -
Net expenses 360,971 546,600 281,157 377,643 700,347
Net Investment income/(loss) 20,645 (142,086) 119,672 97,786 (76,391)
Net Realized and Unrealized Gain/(Loss)
on investments:
Net realized gain/(loss) from
investment transactions (10,033,591) 1,433,170 (1,379,407) 2,218,332 11,684,946
Net realized gain/(loss) from foreign
currency transactions - - - - -
Change in net unrealized appreciation or
depreciation on securities and foreign
currency translations (6,642,816) (21,598,774) (7,814,398) (4,454,208) (6,562,138)
Net Realized and Unrealized Gain/(loss)
on investments: (16,676,407) (20,165,604) (9,193,805) (2,235,876) 5,122,808
Net increase/(decrease) in net assets
resulting from operations $(16,655,762) $ (20,307,690) $(9,074,133) $ (2,138,090) $ 5,046,417

</TABLE>

ICON Leisure ICON Technology ICON Telecomm & ICON Transpor- ICON Short-Term ICON Asia ICON N. Europe ICON S. Europe
Fund(b) Fund(b) Utilities Fund(b) tation Fund(b) Fixed Income Fund(b) Region Fund(b) Region Fund(b) Region Fund(b)
<S> <C> <C> <C> <C> <C> <C> <C>

$ 94,208 $ 150,540 $ 88,871 $ 25,800 $ 1,012,233 $ 56,272 $ 53,259 $ 45,974
939,742 83,957 1,178,554 241,951 - 565,507 1,017,623 254,022
(14,075) (2,496) - - - (76,341) (106,838) (35,246)
1,019,875 232,001 1,267,425 267,751 1,012,233 545,438 964,044 264,750

744,731 729,901 366,467 179,454 113,919 454,406 494,382 202,940

113,129 112,033 64,154 28,848 28,860 190,259 180,244 111,530
36,459 35,747 17,921 8,821 8,675 22,245 24,242 9,933
19,717 21,918 8,609 4,106 1,938 9,844 14,406 3,425
12,008 14,937 10,960 10,449 12,265 10,642 10,804 8,934
7,318 6,855 4,515 1,798 909 4,313 3,999 2,426
3,382 3,409 1,424 693 551 1,635 2,355 874

3,683 3,683 3,683 3,683 3,683 3,683 3,683 3,683
2,315 2,145 1,157 569 706 1,356 1,590 590
15,582 17,251 6,532 3,309 1,846 8,044 11,517 3,498
8,549 7,309 4,954 11,589 (153,220) 44,294 16,096 78,011
966,873 955,188 490,376 253,319 20,132 750,721 763,318 425,844
- - - - - - - (109,000)
966,873 955,188 490,376 253,319 20,132 750,721 763,318 316,844
53,002 (723,187) 777,049 14,432 992,101 (205,283) 200,726 (52,094)

5,787,424 5,250,667 10,444,914 1,798,699 140,283 (11,335,137) 7,084,573 9,764,871

- - - - - (205,712) (144,106) (70,662)

(1,399,091) (21,889,268) 1,429,447 (5,651,265) (110,926) (10,528,930) (3,687,785) (5,229,529)

4,388,333 (16,638,601) 11,874,361 (3,852,566) 29,357 (22,069,779) 3,252,682 4,464,680

$ 4,441,335 $(17,361,788) $ 12,651,410 $(3,838,134) $ 1,021,458 $ (22,275,062) $ 3,453,408 $ 4,412,586
</TABLE>

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 b
For the year ended September 30, 1998 c See note 5

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 and interest
earned from interest-bearing securities held by the Fund. 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 gain (or loss)
represents represents 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.

Statements of Changes in Net Assets

For the periods ended September 30, 1998 and 1997

An Explanation of the Statements of Changes in Net Assets
This statement reports 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 an increase in the number of Fund shares being
purchased. 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 purchase of Fund shares, the decrease due to Fund shares
redeemed from shareholders, and the reinvestment of Fund dividend and
distributions. The final 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.

ICON Basic ICON Consumer
Materials Fund Cyclicals Fund
1998(n) 1997(a) 1998(n) 1997(b)
<S> <C> <C> <C> <C>

Operations:
Net investment income/(loss) $ 20,645 $ (43,832) $ (142,086) $ (29,486)
Net realized gain/(loss) from
investment transactions (10,033,591) 953,349 1,433,170 -
Net realized gain/(loss) from
foreign currency transactions - - - -
Changes in unrealized net appreciation/
depreciation on securities and foreign
currency translations (6,642,816) 3,063,521 (21,598,774) 1,841,950
Net increase/(decrease) in net assets
resulting from operations (16,655,762) 3,973,038 (20,307,690) 1,812,464
Dividends and Distributions to Shareholders from:
Net investment income - - - -
Net capital gains - - - -
Distributions in excess of net capital gains (884,415) - - -
Net decrease from dividends and distributions (884,415) - - -
Fund Share Transactions:
Shares sold 26,837,058 53,268,925 73,192,406 19,949,294
Reinvested dividends and distributions 884,415 - - -
Shares repurchased (43,114,010) (6,991,306) (24,797,697) (845,954)
Net increase (decrease) from fund share transactions (15,392,537) 46,277,619 48,394,709 19,103,340
Total net increase (decrease) in net Assets (32,932,714) 50,250,657 28,087,019 20,915,804
Net Assets:
Beginning of Period 50,250,657 - 20,915,804 -
End of $ 17,317,943 $ 50,250,657 $ 49,002,823 $ 20,915,804
Net Assets consist of:
Paid in capital $ 30,885,082 $ 46,277,619 $ 67,468,562 $ 19,073,854
Accumulated undistributed net
investment income/(loss) 20,645 - - -
Accumulated undistributed net realized
gain/(loss) from investments (10,008,489) 909,517 1,291,084 -
Accumulated net realized gain/(loss)
from foreign currency transactions - - - -
Unrealized appreciation/(depreciation) on
securities and foreign currency translations (3,579,295) 3,063,521 (19,756,823) 1,841,950
Net Assets $ 17,317,943 $ 50,250,657 $ 49,002,823 $ 20,915,804
Transactions in Fund Shares:
Shares sold 3,238,247 5,335,071 6,769,232 1,988,381
Reinvested dividends and distributions 121,988 - - -
Shares repurchased (5,338,963) (725,826) (2,448,362) (79,675)
Net increase/(decrease) (1,978,728) 4,609,245 4,320,870 1,908,706
Shares outstanding beginning of period 4,609,245 - 1,908,706 -
Shares outstanding end of period 2,630,517 4,609,245 6,229,576 1,908,706
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchase of securities $ 27,564,666 $ 56,209,755 $ 75,074,743 $ 18,387,007
Proceeds from sales of securities 39,263,277 14,538,600 26,741,409 -
Purchases of long-term U.S. government securities - - - -
Proceeds from sales of long-term
U.S. government securities - - - -
</TABLE>

ICON Energy ICON Financial ICON Healthcare ICON Leisure
Fund Services Fund Fund Fund
1998(m) 1998(n) 1997(c) 1998(n) 1997(d) 1998(n) 1997(e)
<S> <C> <C> <C> <C> <C> <C>

$ 119,672 $ 97,786 $ 8,720 $ (76,391) $ (282,337) $ 53,002 $ (63,147)

(1,379,407) 2,218,332 - 11,684,946 3,110,315 5,787,424 174,394

- - - - - - -

(7,814,398) (4,454,208) 1,670,218 (6,562,138) 8,734,610 (1,399,091) 5,685,788

(9,074,133) (2,138,090) 1,678,938 5,046,417 11,562,588 4,441,335 5,797,035

- (33,308) - - - - -
- (104,229) - (5,107,561) - (231,012) -
- - - - - - -
- (137,537) - (5,107,561) - (231,012) -

49,426,596 14,924,224 31,979,831 35,498,828 83,783,679 31,663,895 64,256,980
- 137,537 - 5,107,561 - 231,012 -
(28,017,905) (27,812,645) (1,421,724) (86,698,742) (18,039,421) (48,287,140) (3,445,684)
21,408,691 (12,750,884) 30,558,107 (46,092,353) 65,744,258 (16,392,233) 60,811,296
12,334,558 (15,026,511) 32,237,045 (46,153,497) 77,306,846 (12,181,910) 66,608,331

- 32,237,045 - 77,306,846 - 66,608,331 -
$ 12,334,558 $ 17,210,534 $ 32,237,045 $ 31,153,349 $ 77,306,846 $ 54,426,421 $ 66,608,331

$ 21,408,691 $ 17,807,134 $ 30,558,107 $ 19,651,904 $ 65,744,258 $ 44,419,066 $ 60,811,296

119,672 73,288 8,720 - - 791,466 -

(1,379,407) 2,114,103 - 9,328,973 2,827,978 4,929,193 111,247

- - - - - - -

(7,814,398) (2,783,991) 1,670,218 2,172,472 8,734,610 4,286,696 5,685,788
$ 12,334,558 $ 17,210,534 $ 32,237,045 $ 31,153,349 $ 77,306,846 $ 54,426,421 $ 66,608,331

5,234,981 1,284,317 3,207,358 2,990,425 8,224,065 2,745,482 6,189,450
- 13,658 - 486,896 - 20,626 -
(3,291,547) (2,528,777) (138,763) (7,306,493) (1,659,485) (4,018,478) (320,285)
1,943,434 (1,230,802) 3,068,595 (3,829,172) 6,564,580 (1,252,370) 5,869,165
- 3,068,595 - 6,564,580 - 5,869,165 -
1,943,434 1,837,793 3,068,595 2,735,408 6,564,580 4,616,795 5,869,165

$ 44,186,041 $ 23,248,572 $ 30,280,032 $ 28,208,249 $ 103,462,081 $ 24,408,049 $ 60,548,827
22,688,374 35,775,710 - 77,799,421 40,116,738 40,990,664 1,177,134

- - - - - - -

- - - - - - -
</TABLE>

The accompanying notes are an integral part of the financial statements a-n
legends are at the bottom of page 58 m For the period November 5, 1997
(commencement of operations) to September 30, 1998

Statements of Changes in Net Assets

For the periods ended September 30, 1998 and 1997
<TABLE>
<CAPTION>

ICON Technology ICON Telecomm & ICON Transportation Fund
Utilities Fund
Fund 1998(n) 1997(f) 1998(n) 1997(g) 1998(n) 1997(h)
<S> <C> <C> <C> <C> <C> <C>

Operations:
Net investment income/(loss) $ (723,187) $ (158,812) $ 777,049 $ 70,915 $ 14,432 $ (2,707)
Net realized gain/(loss) from
investment transactions 5,250,667 2,302,870 10,444,914 43,406 1,798,699 475,866
Net realized gain/(loss) from
foreign currency transactions - - - - - -
Changes in unrealized net appreciation/
depreciation on securities and foreign
currency translations (21,889,268) 6,980,222 1,429,447 1,088,257 (5,651,265) 3,722,935
Net increase/(decrease) in net assets
resulting from operations (17,361,788) 9,124,280 12,651,410 1,202,578 (3,838,134) 4,196,094
Dividends and Distributions to Shareholders from:
Net investment income - - (266,587) - (11,614) -
Net capital gains (2,209,608) - (42,972) - (471,107) -
Net decrease from dividends and distributions (2,209,608) - (309,559) - (482,721) -
Fund Share Transactions:
Shares sold 97,384,184 39,084,848 77,148,809 19,991,740 5,477,586 19,745,008
Reinvested dividends and distributions 2,209,608 - 307,627 - 482,721 -
Shares repurchased (61,377,016) (6,360,607) (86,471,237) (772,226) (12,853,191) (1,409,797)
Net increase (decrease) from fund share transactions
38,216,776 32,724,241 (9,014,801) 9,219,514 (6,892,884) 18,335,211
Total net increase (decrease) in net assets 18,645,380 41,848,521 3,327,050 20,422,092 (11,213,739) 22,531,305
Net Assets:
Beginning of Period 41,848,521 - 20,422,092 - 22,531,305 -
End of Period $60,493,901 $ 41,848,521 $ 23,749,142 $ 20,422,092 $ 11,317,566 $ 22,531,305
Net Assets consist of:
Paid in capital $70,941,017 $ 32,724,241 $ 10,203,486 $ 19,219,514 $ 11,442,325 $ 18,335,211
Accumulated undistributed net
investment income/(loss) - - 583,039 70,915 4,870 (2,707)
Accumulated undistributed net realized
gain/(loss) from investments 4,461,930 2,144,058 10,444,914 43,406 1,798,700 475,866
Accumulated net realized gain/(loss)
from foreign currency transactions - - - - - -
Unrealized appreciation/(depreciation) on
securities and foreign currency translations (14,909,046) 6,980,222 2,517,703 1,088,257 (1,928,329) 3,722,935
Net Assets $ 60,493,901 $ 41,848,521 $ 23,749,142 $ 20,422,092 $ 11,317,566 $ 22,531,305
Transactions in Fund Shares:
Shares sold 8,836,734 3,786,744 6,461,776 1,997,744 468,177 1,943,015
Reinvested dividends and distributions 229,450 - 25,678 - 44,246 -
Shares repurchased (5,717,950) (557,889) (6,732,956) (75,598) (1,132,684) (125,268)
Net increase/(decrease) 3,348,234 3,228,855 (245,502) 1,922,146 (620,261) 1,817,747
Shares outstanding beginning of period 3,228,855 - 1,922,146 - 1,817,747 -
Shares outstanding end of period 6,577,089 3,228,855 1,676,644 1,922,146 1,197,486 1,817,747
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchase of securities $ 57,668,360 $ 43,501,845 $ 54,281,448 $ 18,788,936 $ 1,811,710 $ 21,171,745
Proceeds from sales of securities 21,778,968 12,029,143 63,596,266 476,790 9,061,170 3,018,727
Purchases of long-term
U.S. government securities - - - - -
Proceeds from sales of long-term
U.S. government securities - - - - -
</TABLE>

ICON Short-Term ICON Asia ICON N. Europe ICON S. Europe
Fixed Income Fund Region Region Region
1998(n) 1997(i) 1998(n) 1997(j) 1998(n) 1997(k) 1998(n) 1997(l)
<S> <C> <C> <C> <C> <C> <C> <C>
$ 992,101 $ 3,832,274 $ (205,283) $ (60,266) $ 200,726 $ 296,544 $ (52,094) $ 172,559

140,283 348,599 (11,335,137) 3,905 7,084,573 139,116 9,764,871 (2,426)

- - (205,712) 5,182 (144,106) (105,148) (70,662) 5,843

(110,926) 159,162 (10,528,930) (2,088,339) (3,687,785) 3,870,951 (5,229,529) 3,271,044

1,021,458 4,340,035 (22,275,062) (2,139,518) 3,453,408 4,201,463 4,412,586 3,447,020

(865,022) (3,832,274) - - (236,890) - (113,918) -
(345,113) - - - (558,284) - (1,038,913) -
(1,210,135) (3,832,274) - - (795,174) - (1,152,831) -

104,764,409 421,179,461 50,431,060 64,894,833 41,024,199 50,603,747 43,453,014 20,262,386
1,131,298 3,832,274 - - 795,174 - 1,152,831 -
(181,738,914) (344,137,564) (59,705,150) (4,476,494) (54,698,301) (4,858,545) (59,501,691) (2,621,659)
(75,843,207) 80,874,171 (9,274,090) 60,418,339 (12,878,928) 45,745,202 (14,895,846) 17,640,727
(76,031,884) 81,381,932 (31,549,152) 58,278,821 (10,220,694) 49,946,665 (11,636,091) 21,087,747

81,381,932 - 58,278,821 - 49,946,665 - 21,087,747 -
$ 5,350,048 $ 81,381,932 $26,729,669 $58,278,821 $39,725,971 $49,946,665 $9,451,656 $ 21,087,747

$ 5,030,965 $80,874,171 $50,887,784 $60,367,161 $32,866,273 $45,745,202 $2,744,882 $ 17,640,727

127,078 - (205,712) - 416,694 188,849 (60,670) 188,199

143,769 348,599 (11,134,607) (5,183) 6,509,090 246,811 8,790,749 (18,066)

- - (200,530) 5,182 (249,252) (105,148) (64,819) 5,843

48,236 159,162 (12,617,266) (2,088,339) 183,166 3,870,951 (1,958,486) 3,271,044
$ 5,350,048 $81,381,932 $26,729,669 $58,278,821 $39,725,971 $49,946,665 $9,451,656 $ 21,087,747

10,667,818 42,129,480 6,402,144 6,291,111 3,234,854 4,976,379 3,141,567 2,017,133
114,918 382,921 - - 72,619 - 101,037 -
(18,352,997) (34,395,478) (7,874,666) (427,595) (4,408,291) (459,716) (4,217,857) (245,383)
(7,570,261) 8,116,923 (1,472,522) 5,863,516 (1,100,818) 4,516,663 (975,253) 1,771,750
8,116,923 - 5,863,516 - 4,516,663 - 1,771,750 -
546,662 8,116,923 4,390,994 5,863,516 3,415,845 4,516,663 796,497 1,771,750

$ - $ - $ 30,912,127 $ 57,365,313 $27,509,067 $48,595,889 $25,142,627 $ 20,714,592
- - 38,905,083 - 41,448,427 4,951,697 41,727,283 1,124,737

$ 14,984,765 $ 145,207,871 - - - - - -

46,525,838 130,393,164 - - - - - -
</TABLE>

The accompanying notes are an integral part of the financial statements f-l
legends are at the bottom of page 58 m For the period November 5, 1997
(commencement of operations) to September 30, 1998

Financial Highlights

For a share outstanding throughout each of the periods ending
<TABLE>
<CAPTION>

ICON Basic ICON Consumer
Materials Fund Cyclicals Fund
1998(n) 1997(a) 1998(n) 1997(b)
<S> <C> <C> <C> <C>

Net asset value, beginning of period $ 10.90 $ 10.00 $ 10.96 $ 10.00
Income from investment operations
Net investment income (loss) 0.02 (0.01) (0.01) (0.01)
Net gains or (losses) on securities
(both realized and unrealized) (4.08) 0.91 (3.08) 0.97
Total from investment operations (4.06) 0.90 (3.09) 0.96
Less dividends and distributions
Dividends (from net investment income) - - - -
Distributions (from net realized gain) (0.26) - - -
Total distributions (0.26) - - -
Net asset value, end of period $ 6.58 $ 10.90 $ 7.87 $ 10.96
Total Return (37.45%) 9.00% (28.26%) 9.60%
Net assets, end of period (in thousands) $ 17,318 $ 50,251 $ 49,003 $ 20,916
Average net assets for the period
(in thousands) $ 27,117 $ 45,001 $ 39,883 $ 19,876
Ratio of expenses to average net assets* 1.33% 1.45% 1.37% 1.89%
Ratio of net investment income to
average net assets* 0.08% (0.24%) (0.36%) (0.67%)
Portfolio turnover rate 106.70% 32.35% 72.42% 0.00%
</TABLE>

ICON Energy ICON Financial ICON Healthcare ICON Leisure
Fund Services Fund Fund Fund
1998(m) 1998(n) 1997(c) 1998(n) 1997(d) 1998(n) 1997(e)
<S> <C> <C> <C> <C> <C> <C>

$ 10.00 $ 10.51 $ 10.00 $ 11.78 $ 10.00 $ 11.35 $ 10.00

0.06 0.04 0.01 0.02 (0.04) 0.02 (0.01)

(3.71) (1.14) 0.50 0.35 1.82 0.45 1.36
(3.65) (1.10) 0.51 0.37 1.78 0.47 1.35

- (0.01) - - - - -
- (0.03) - (0.76) - (0.03) -
- (0.04) - (0.76) - (0.03) -
$ 6.35 $ 9.37 $ 10.51 $ 11.39 $ 11.78 $ 11.79 $ 11.35
(36.50%) (10.46%) 5.10% 3.77% 17.80% 4.18% 13.50%
$ 12,335 $ 17,211 $ 32,237 $ 31,153 $ 77,307 $ 54,426 $ 66,608

$ 21,128 $ 28,304 $ 29,803 $ 56,620 $ 59,164 $ 74,443 $ 45,444
1.20% 1.33% 1.70% 1.24% 1.45% 1.30% 1.48%

0.51% 0.35% 0.12% (0.13%) (0.80%) 0.07% (0.36%)
112.62% 87.68% 0.00% 52.16% 71.81% 34.17% 2.52%
</TABLE>

The accompanying notes are an integral part of the financial statements 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 July 1, 1997 (commencement of operations) to September 30, 1997 d For
the period February 24, 1997 (commencement of operations) to September 30, 1997
e For the period May 9, 1997 (commencement of operations) to September 30, 1997
f For the period February 19, 1997 (commencement of operations) to September 30,
1997 g For the period July 9, 1997 (commencement of operations) to September 30,
1997 h For the period May 9, 1997 (commencement of operations) to September 30,
1997 i For the period February 7, 1997 (commencement of operations) to September
30, 1997 j For the period February 25, 1997 (commencement of operations) to
September 30, 1997 k For the period February 18, 1997 (commencement of
operations) to September 30, 1997 l For the period February 20, 1997
(commencement of operations) to September 30, 1997 m For the period November 5,
1997 (commencement of operations) to September 30, 1998 n For the year ended
September 30, 1998 * Annualized for periods less than a year

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.

Financial Highlights

For a share outstanding throughout each of the periods ending
<TABLE>
<CAPTION>

ICON Technology ICON Telecomm & ICON Transportation
Fund Utilities Fund Fund
1998(n) 1997(f) 1998(n) 1997(g) 1998(n) 1997(h)
<S> <C> <C> <C> <C> <C> <C>

Net asset value, beginning of period $ 12.96 $ 10.00 $ 10.63 $ 10.00 $ 12.40 $ 10.00
Income from investment operations
Net investment income (loss) (0.06) (0.05) 0.31 0.06 0.01 0.00
Net gains or (losses ) on securities
(both realized and unrealized) (3.31) 3.01 3.28 0.57 (2.71) 2.40
Total from investment operations (3.37) 2.96 3.59 0.63 (2.70) 2.40
Less dividends and distributions
Dividends (from net investment income) - - (0.04) - (0.01) -
Distributions (from net realized gain) (0.39) - (0.01) - (0.24) -
Total distributions (0.39) - (0.05) - (0.25) -
Net asset value, end of period $ 9.20 $ 12.96 $ 14.17 $ 10.63 $ 9.45 $ 12.40
Total Return (26.17%) 29.60% 33.88% 6.30% (22.08%) 24.00%
Net assets, end of period (in thousands) $ 60,494 $ 41,849 $ 23,749 $ 20,422 $ 11,318 $ 22,531
Average net assets for the period
(in thousands) $ 73,057 $ 29,766 $ 36,698 $ 19,230 $ 17,975 $ 19,459
Ratio of expenses to average net assets* 1.31% 1.47% 1.34% 1.91% 1.41% 1.61%
Ratio of net investment income to
average net assets* (0.99%) (0.88%) 2.12% 1.62% 0.08% (0.04%)
Portfolio turnover rate 31.68% 44.57% 155.72% 2.55% 10.62% 15.97%
</TABLE>
<TABLE>
<CAPTION>

ICON Short-Term ICON Asia ICON N. Europe ICON S. Europe
Fixed Income Fund Region Fund Region Fund Region Fund
1998(n) 1997(i) 1998(n) 1997(j) 1998(n) 1997(k) 1998(n) 1997(l)
<S> <C> <C> <C> <C> <C> <C> <C>

$ 10.03 $ 10.00 $ 9.94 $ 10.00 $ 11.06 $ 10.00 $ 11.90 $ 10.00

0.76 0.47 (0.04) (0.01) (0.02) 0.07 (0.23) 0.10

(0.14) 0.03 (3.81) (0.05) 0.79 0.99 0.93 1.80
0.62 0.50 (3.85) (0.06) 0.77 1.06 0.70 1.90

(0.53) (0.47) - - (0.06) - (0.07) -
(0.33) - - - (0.14) - (0.66) -
(0.86) (0.47) - - (0.20) - (0.73) -
$ 9.79 $ 10.03 $ 6.09 $ 9.94 $ 11.63 $ 11.06 $ 11.87 $ 11.90
6.55% 3.18% (38.73%) (0.60%) 7.00% 10.60% 6.11% 19.00%
$ 5,350 $ 81,382 $ 26,730 $ 58,279 $ 39,726 $ 49,947 $ 9,452 $ 21,088

$ 17,542 $ 128,897 $ 45,361 $ 45,191 $ 49,406 $ 36,212 $ 20,263 $ 15,055
0.11%+ 1.10% 1.65% 1.66% 1.54% 1.66% 1.56%# 1.69%

5.66%+ 4.66% (0.45%) (0.23%) 0.41% 1.34% (0.26%)# 1.92%
163.75% 297.62% 69.57% 0.00% 57.84% 13.89% 113.55% 7.29%
</TABLE>

The accompanying notes are an integral part of the financial statements a-n
legends are at the bottom of page 58 # 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 5. 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%.

The next item is the portfolio turnover rate, which is a measure of the amount
of buying and selling activity in the Fund's 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.

ICON FUNDS

Notes to Financial Statements

September 30, 1998

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 thirteen are currently in operations) 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 equity 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
Portfolio's 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 Fund are determined by using pricing services which
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 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 Fund has 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.
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 Fund on the ex
dividend/distribution date. The Fund distributes net realized capital gains, if
any, to its 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. These differences are primarily due to differing
treatments for foreign currency transactions and net operating losses.
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 Trust is
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 in the Trust. Deferred Organizational Costs.
Organizational costs are being amortized over five years by the Funds. The
amortization starts once the Funds have assets and begin 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. 2. Fees and
Other Transactions with Affiliates. Investment Advisory Fees Domestic and
International Funds As the Funds' investment advisor, Meridian Investment
Management, Inc. (MIMCO) receives a monthly fee that is computed daily at an
annual rate of 1.00% of the Domestic and International Fund's 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. MIMCO, in its capacity as advisor to the Fund, has
entered into a sub-advisory agreement with Wellington Management Company, LLP
(Wellington) to assist in advising the Fund. MIMCO pays Wellington a fee based
upon an annual rate of 0.20% of the fund's first $250 million of average daily
net assets, 0.15% on the next $250 million of average daily net assets and
0.125% on average daily net assets over $500 million. The agreement requires a
minimum annual fee of $100,000. Transfer Agent, Custody and Accounting Fees.
Firstar Trust Company (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 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. Administrative Services The Funds have
entered into an administrative services agreement with AmeriPrime Financial
Services, Inc. (Ameriprime) and MIMCO. This agreement provides for an annual fee
of 0.05% (MIMCO receives 60%, Ameriprime the balance) on the Trust's 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 and capital loss carryforwards.

Net capital loss carryover expire in 2006. To the extent future capital
gains are offset by capital loss carryovers, such gains will not be distributed
to shareholders.

3. Federal Income Tax. (continued) Such differences identified in the
period ended September 30, 1998, have been reclassified among the components of
net assets as follows:
<TABLE>
<CAPTION>

Fund Undistributed Undistributed Paid-In
Net Investment Net Realized Capital
Income Gains and Losses
<S> <C> <C> <C>

ICON Consumer Cyclicals Fund $ 142,085 $ (142,085) $ -
ICON Financial Services Fund $ 90 $ - $ (90)
ICON Healthcare Fund $ 76,391 $ (76,391) $ -
ICON Leisure Fund $ 738,465 $ (738,465) $ -
ICON Technology Fund $ 723,187 $ (723,187) $ -
ICON Telecommunication and Utilities Fund $ 1,663 $ (434) $ (1,229)
ICON Transportation Fund $ 4,759 $ (4,759) $ -
ICON Asia Region Fund $ (426) $ 205,712 $ (205,286)
ICON North Europe Region Fund $ 264,010 $ (264,010) $ -
ICON South Europe Region Fund $ (82,856) $ 82,856 $ -
</TABLE>

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, 1998, are as follows:
<TABLE>
<CAPTION>

Fund Federal Tax Cost Unrealized Unrealized Net Appreciation Net Capital Post October
Appreciation (Depreciation) (Depreciation) Loss Carryovers Loss Referral
<S> <C> <C> <C> <C> <C> <C>

ICON Basic Materials Fund $ 22,177,704 $ 375,905 $ (5,219,132) $ (4,843,227) $ - $ -
ICON Consumer Cyclicals Fund $ 68,346,825 $ 776,809 $ (20,726,150) $ (19,949,341) $ - $ -
ICON Energy Fund $ 20,224,942 $ 89,532 $ (8,010,611) $ (7,921,079) $ - $ -
ICON Financial Services Fund $ 19,976,880 $ 1,029,769 $ (3,819,413) $ (2,789,644) $ - $ -
ICON Healthcare Fund $ 28,792,031 $ 6,331,516 $ (4,247,483) $ 2,084,033 $ - $ -
ICON Leisure Fund $ 50,245,216 $ 10,145,566 $ (7,205,355) $ 2,940,211 $ - $ -
ICON Technology Fund $ 75,014,526 $ 8,098,386 $ (23,060,102) $ (14,961,716) $ - $ -
ICON Telecommunication and
Utilities Fund $ 22,335,940 $ 2,915,739 $ (428,785) $ 2,486,954 $ - $ -
ICON Transportation Fund $ 13,178,123 $ 481,498 $ (2,409,827) $ (1,928,329) $ - $ -
ICON Short-Term
Fixed Income Fund $ 5,384,760 $ 48,236 $ - $ 48,236 $ - $ -
ICON Asia Region Fund $ 42,932,347 $ 109,630 $ (16,042,968) $ (15,933,338) $ 9,312 $ 8,215,385
ICON North Europe Region Fund $ 40,200,792 $ 4,224,871 $ (4,427,721) $ (202,850) $ - $ 122,260
ICON South Europe Region Fund $ 11,460,999 $ 223,839 $ (2,223,695) $ (1,999,856) $ - $ 60,669
</TABLE>

The ICON South Europe Region Fund has elected to pass through foreign taxes
under Section 853 of the Internal Revenue Code. The fund paid foreign taxes of
$35,260 on foreign source income of $254,022.

4. Malaysian Securities

Effective September 1, 1998, the Government of Malaysia imposed currency
controls on the Malaysian ringgit. Among other things, these controls
effectively prohibit the Asia Region Fund from repatriating any capital invested
in Malaysian securities without the prior approval of the Malaysian Central
Bank, unless the security being sold has been held for more than one year. The
holding period begins accruing on the later of September 1, 1998 or the date on
which the security is purchased. Therefore, Malaysia's new currency controls
effectively would prohibit the Asia Region Fund from repatriating any capital
invested in Malaysia without Central Bank approval until September 1, 1999 at
the earliest. Due to these restrictions the investments in Malaysia have been
valued at fair value using a 30% discount as of September 30, 1998. As of
September 30, 1998, approximately 4.5% of the Asia Region Fund's assets were
invested in Malaysian securities.

5. Accounting Estimates

The ICON Short-Term Fixed Income Fund had a 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
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 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.

The ICON South Europe Region Fund underaccrued foreign custodial and
transaction costs for the year ended September 30, 1998. The administrator has
agreed to reimburse the fund $109,000 for this underaccrual. This is included in
the statement of operations as fees and expenses reimbursed.

Both of these transactions have been accounted for as a change in
accounting estimate and adjusted for in the current period.

ICON FUNDS

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, 1998, the results of each of their
operations for each of the periods indicated, 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, 1998 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion expressed
above.

PricewaterhouseCoopers LLP
Denver, Colorado
November 24, 1998