<PAGE>
------------------
ICON FUNDS
------------------
[GRAPHIC]
FINDING
VALUE
IN
CHANGING
MARKETS
2000
SEMI-ANNUAL
REPORT
<PAGE>
------------------
ICON FUNDS
------------------
MANAGEMENT DISCUSSION AND ANALYSIS -------------------------------------> 8
DOMESTIC FUNDS
MANAGEMENT DISCUSSION AND ANALYSIS -------------------------------------> 35
SHORT-TERM FIXED INCOME FUND
MANAGEMENT DISCUSSION AND ANALYSIS -------------------------------------> 37
INTERNATIONAL FUNDS
FINANCIAL STATEMENTS ---------------------------------------------------> 52
FINANCIAL HIGHLIGHTS ---------------------------------------------------> 60
NOTES TO FINANCIAL STATEMENTS ------------------------------------------> 66
Serving as Advisor for the ICON Funds
is Meridian Investment Management
Corporation, referenced in this report
as the "Advisor."
1
<PAGE>
ICON FUNDS 2000 ANNUAL REPORT
FINDING VALUE IN CHANGING MARKETS
DEAR ICON FUNDS
SHAREHOLDERS AND ADVISORS:
The first rule of investing:
NEVER UNDERESTIMATE THE DYNAMIC NATURE OF THE MARKET. Case in point: the last
three years.
Since 1997, sector and industry leadership has been extremely narrow and
short-lived. The following discussion offers insight and an explanation into
that situation.
Each week, we compute the weekly change in the NYSE Composite Index. Then we
compute a standard deviation of the most recent 13 weekly changes, which simply
reflects how much variability there has been in the market.
This chart tracks this dynamic aspect from 1982 through 1990. You'll see that
every upward spike in variability has ushered in a theme change in the market.
................................................................................
CRAIG T. CALLAHAN, D.B.A. TRUSTEE, CHIEF
INVESTMENT OFFICER OF THE ADVISOR
[PHOTO]
2
<PAGE>
ICON FUNDS LETTER TO SHAREHOLDERS AND ADVISORS
In 1982 (Point 1), the bear market ended and cyclical issues led the rally.
In 1984 (Point 2), Health and Financial issues became the new leaders. In
mid-1986 (Point 3), Mining and Energy stocks surged and led the market
higher. The extreme variability following the market crash in 1987 (Point 4)
resulted in a recovery market where Banks and Transportation proved new
industry leaders. In October 1989 (Point 5), after the United Airlines
takeover financing collapsed, previously lagging Technology issues came alive
and bolted to the lead. The following autumn (Point 6) saw the invasion of
Kuwait. This time, Cyclicals took the lead. The pattern is clear: after every
jolt in variability, the market has moved higher with new industry leadership.
[GRAPH] Standard Deviation of 13-week changes in NYSE Composite Index 1/82-3/00
Data Source: Barron's. Past Performance cannot guarantee future results
3
<PAGE>
ICON FUNDS LETTER TO SHAREHOLDERS AND ADVISORS
[GRAPH]
This is the same graph with examples from 1997 through first quarter 2000.
Although Point 7 did not quite hit the usual threshold, we definitely saw
leadership shifting to Brokerage, Investment Management, Broadcasting and Air
Freight. Later in 1997 and into early 1998 (Point 8), Retail Industries and
Airlines took the lead. Point 9 occurred at the bottom of October 1998, when
Technology stocks catapulted into 1999 after being among the worst-performing
industries during the previous market move. The drop in the market in fall
1999 gave us Point 10, from which Biotechnology and many small-cap stocks in
the Drug industry jumped into favor.
4
<PAGE>
ICON FUNDS LETTER TO SHAREHOLDERS AND ADVISORS
[GRAPH]
................................................................................
The graph of the NYSE Composite Index shows the bursts in the market from 1997
to the present. Instead of lasting one to two years, they lasted just six months
to one year. Also, during those advances, only about 25 percent of the
industries beat broad market indices. If an index were to reflect the broad
market, it would seem logical to expect nearly half the industries would beat
the index and the remainders would lag. But such has not been the case. In
summary, we have experienced a market with rapidly changing, short-lived sector
themes.
This can be a nightmare to investors and managers. One manager might catch
one theme correctly and get great returns over one move, and then post dismal
returns by missing the next theme. Investors using momentum approaches can
get hurt in a setting of rapid rotation. They get into a theme after it is in
motion and do not get out until after it has fizzled. Turnover and taxes can
increase in these conditions if investors attempt to participate in every
short-term move.
5
<PAGE>
ICON FUNDS LETTER TO SHAREHOLDERS AND ADVISORS
What is the cause of this unusual situation? Beginning in early 1997, the
Federal Reserve tightened monetary policy, but did so with less severity than in
the past. Interest rates were increased in little quarter-point increments
despite an inherently strong economy. Rather than abandoning stocks altogether,
investors have flocked to small pockets of growth they thought might be immune
to FED policy. As seen in the graphs, these pockets have rotated rapidly.
Fortunately, the combination of continued tight monetary policy and high
economic growth is not sustainable. Monetary policy is very powerful and will
ultimately bring about a new economic environment.
During the past three years we have tried to be steady and dependable. Our funds
have allowed investors to participate in sector themes, but not through
speculation and rapid turnover.
IT HAS HELPED US FIND VALUE IN CHANGING MARKETS.
/s/ Craig T. Callahan, D.B.A.
Trustee, Chief Investment
Officer of the Advisor
6
<PAGE>
----------
ICON FUNDS
----------
MANAGEMENT DISCUSSION AND ANALYSIS .....................................> 8
DOMESTIC FUNDS
MANAGEMENT DISCUSSION AND ANALYSIS .....................................>35
SHORT-TERM FIXED INCOME FUND
MANAGEMENT DISCUSSION AND ANALYSIS .....................................>37
INTERNATIONAL FUNDS
FINANCIAL STATEMENTS ...................................................>52
FINANCIAL HIGHLIGHTS ...................................................>60
NOTES TO FINANCIAL STATEMENTS ..........................................>66
Serving as Advisor for the ICON Funds
is Meridian Investment Management
Corporation, referenced in this report
as the "Advisor."
7
<PAGE>
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
BASIC MATERIALS
PERFORMANCE
The ICON Basic Materials Fund (the "Fund") opened on May 5, 1997. For the six
months ended March 31, 2000, the Fund depreciated 3.42%. The performance for the
Fund's benchmark, the S&P SuperComposite 1500 Index, was a gain of 18.52% over
that same period.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Basic Materials Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, has
appreciated approximately 17% from six months ago. Following the fiscal year end
for ICON Funds on September 30, 1999, two different markets emerged. With
renewed Federal Reserve tightening, investors gravitated toward technology and
biotechnology issues. Despite generally excessive prices relative to fair value,
investors sought growth at any price that they hoped would be immune to
gradually increasing interest rates. Energy issues also participated on the
upside due to their own unique relationship to rising oil prices. At the other
end of the market, economic and interest rate sensitive sectors languished. For
almost two quarters, the lure and fascination of "the new economy", e.g.,
internet, gene research and other hi-tech, futuristic concepts, provided
investors with a very exciting but narrow market.
Companies in other basic, consumer, transportation and financial industries were
not idle but were going about their business. In most cases, earnings were
growing while stock prices were generally being ignored. The notion of one
market, or "the market", appears not applicable today. Investors must look
industry by industry, and sector by sector, to find situations that fit their
investment style and objective.
INDUSTRY HIGHLIGHTS
The ICON Basic Materials Fund has seen considerable activity in the last six
months. New industry positions have been added and old ones sold. Based on the
Advisor's quantitative system, which includes both valuation and relative
strength, stocks in the Gold/Precious Metals Mining and Metal Fabricator
industries were sold during the last six months. The new industry added to the
Fund was Construction.
The largest industry holding in the Fund is Electrical Equipment. Stocks in this
industry include General Electric, Molex and Solectron. These stocks have posted
solid gains since being added to the Fund in early 1999. These stocks, not
considered traditional Basic Materials issues, have added diversification and
large capitalization exposure to the Fund.
The second largest industry holding is Steel. Steel stocks held in the Fund
include Worthington, U.S. Steel, and Texas Industries, among others. Steel
producers have profited from the global economic strength over the past 18
months. As the U.S. economy has raced ahead and international economies have
followed, raw material producers have benefited.
CURRENT OUTLOOK
The Advisor sees many attractive industry opportunities within the Fund.
Commodity related industries can be subject to significant volatility based on
fluctuations in the underlying commodity. The Fund is currently positioned in
six different industries, with approximately half of its assets in non-commodity
related industries. The Advisor believes that the diversification of the current
positioning should mitigate wild price swings that are characteristic of
commodity-related industries.
8
<PAGE>
<TABLE>
<CAPTION>
BASIC MATERIALS
--------------------------------------------------------------------------------
<S> <C>
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
Equities 81.3%
Top 10 Equity Holdings (% of Net Assets) 45.8%
Number of Stocks 29
Cash & Cash Equivalents 18.7%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Molex Inc. 5.9%
General Electric Co. 5.9%
Solectron Corp. 5.8%
Englehard Corp. 4.9%
PPG Industries Inc. 4.8%
Phelps Dodge Corp. 4.2%
Honeywell Intl. Inc. 4.1%
Cambrex Corp. 3.6%
Nucor Corp. 3.3%
Worthington Industries 3.3%
--------------------------------------------------------------------------------
TOP INDUSTRIES MARCH 31, 2000 (UNAUDITED)
Electrical Equipment 37.4%
Steel 17.9%
Chemicals (Diversified) 8.8%
Metals Mining 8.0%
Construction 5.7%
Chemicals (Speciality) 3.5%
--------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON BASIC S&P SUPERCOMPOSITE
MATERIALS FUND 1500 INDEX
-------------- -------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $7,352 $18,656
CUMULATIVE
RETURN SINCE (26.48%) 86.56%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE (10.04%) 23.93%
INCEPTION
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON BASIC S&P SUPERCOMPOSITE
MATERIALS FUND 1500 INDEX
-------------- -------------------
<S> <C>
11.89% 18.17%
</TABLE>
*Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Basic Materials Fund are since the inception of the
Fund through 3/31/00 and for the one year period ended 3/31/00. The returns are
total returns, and include the reinvestment of dividends and capital gains. Past
performance does not guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted index
of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and the S&P 600.
It is comprised of 1500 stocks. The S&P SuperComposite 1500 Index is an
unmanaged index that includes the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
9
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
BASIC MATERIALS
<TABLE>
<CAPTION>
Shares or Principal Amount Market Value
<S> <C>
COMMON STOCKS 81.3%
CONSTRUCTION 5.7%
14,100 Florida Rocok INDS $ 394,800
9,700 Southdown Inc. 572,300
12,000 Vulcan Materials Co. 549,750
--------------------------------------------------------------------------------
Total Construction 1,516,850
STEEL 17.9%
31,700 AK Steel Holding Corp. 328,888
19,950 Allegheny Technologies Inc. 400,247
94,000 Bethlehem Steel Corp.(a) 564,000
15,800 Nucor Corp. 790,000
23,100 Texas Industries Inc. 718,988
35,600 Ucar Internationala 469,475
28,500 USX-U S Steel Group 712,500
63,500 Worthington Industries 785,811
--------------------------------------------------------------------------------
Total Steel 4,769,909
METALS MINING 8.0%
38,500 Freeport-McMoran Copper-B(a) 464,406
35,600 INCO Ltd.(a) 651,925
21,465 Phelps Dodge Corp. 1,019,588
--------------------------------------------------------------------------------
Total Metals Mining 2,135,919
CHEMICALS (SPECIALTY) 3.5%
3,500 Penford Corp. 63,000
19,700 Cambrex Corp.(a) 856,950
--------------------------------------------------------------------------------
Total Chemicals (Specialty) 919,950
CHEMICALS (DIVERSIFIED) 8.8%
78,000 Engelhard Corp. 1,179,750
22,100 PPG Industries Inc. 1,156,106
--------------------------------------------------------------------------------
Total Chemicals (Diversified) 2,335,856
ELECTRICAL EQUIPMENT 37.4%
17,700 Benchmark Electronics Inc.(a) 654,900
8,200 Black Box Corp.(a) 567,722
12,400 C & D Technologies Inc. 731,600
14,500 Emerson Electric Co. 766,687
9,200 General Electric Co. 1,427,725
18,937 Honeywell Intl. Inc.. 997,743
24,375 Molex Inc. 1,432,031
16,700 Rockwell Intl. Corp. 698,268
35,000 Solectron Corp.(a) 1,402,188
8,000 Symbol Technologies 658,500
10,600 Technitrol(a) 617,451
--------------------------------------------------------------------------------
Total Electical Equipment 9,954,815
Total common stocks 81.3%
Cost ($21,227,568) $ 21,633,299
--------------------------------------------------------------------------------
SHORT-TERM NOTES 18.7%
--------------------------------------------------------------------------------
640,390 US Treasury Bill
4.53% 4/27/2000 640,390
--------------------------------------------------------------------------------
862,698 General Mills Demand Note
5.74% 12/3/2000 862,698
--------------------------------------------------------------------------------
882,951 Sara Lee Demand Note
5.73% 4/26/2000 882,951
--------------------------------------------------------------------------------
761,505 Wisconsin Electric Demand Note
5.77% 4/4/2000 761,505
--------------------------------------------------------------------------------
924,590 Warner Lambert Demand Note
5.77% 11/21/2000 924,590
--------------------------------------------------------------------------------
914,741 American Family Demand Note
5.77% 12/21/2000 914,741
--------------------------------------------------------------------------------
Total Short-Term Notes
Cost ($4,986,875) 4,986,875
--------------------------------------------------------------------------------
Total Investments 100.0%
Cost ($26,214,443) $26,620,174
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF
THE FINANCIAL STATEMENTS
(a) NON-INCOME PRODUCING SECURITY
10
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
CONSUMER CYCLICALS
PERFORMANCE
The ICON Consumer Cyclicals Fund (the "Fund") opened on July 9, 1997. For the
six months ended March 31, 2000, the Fund appreciated 6.10%. The performance for
the Fund's benchmark, the S&P SuperComposite 1500 Index, was a gain of 18.52%
over that same period.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Consumer Cyclicals Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, has
appreciated approximately 17% from six months ago. Following the fiscal year end
for ICON Funds on September 30, 1999, two different markets emerged. With
renewed Federal Reserve tightening, investors gravitated toward technology and
biotechnology issues. Despite generally excessive prices relative to fair value,
investors sought growth at any price that they hoped would be immune to
gradually increasing interest rates. Energy issues also participated on the
upside due to their own unique relationship to rising oil prices. At the other
end of the market, economic and interest rate sensitive sectors languished. For
almost two quarters, the lure and fascination of "the new economy", e.g.,
internet, gene research and other hi-tech, futuristic concepts, provided
investors with a very exciting, but narrow market.
Companies in other basic, consumer, transportation and financial industries were
not idle, but were going about their business. In most cases, earnings were
growing while stock prices were generally being ignored. The notion of one
market, or "the market", appears not applicable today. Investors must look
industry by industry, and sector by sector, to find situations that fit their
investment style and objective.
INDUSTRY HIGHLIGHTS
The ICON Consumer Cyclicals Fund has seen considerable activity in the last six
months. New industry positions include Building Material Group, Retail Stores
(Department Stores) and Retail (Discounters). These investments have focused on
the opportunities the Advisor believes are available within certain Consumer
Cyclical oriented industries. Based on the Advisor's quantitative system, which
includes both valuation and relative strength, stocks in the Retail Specialty
(Apparel), Retail (Specialty), Footware, Machinery (Diversified) and Specialty
Printing industries were sold during the last six months.
The largest industry holding is Retail (Building Supplies). Stocks held in this
industry include Home Depot, Lowes, and Fastenal, among others. Home Depot,
which has long been a darling of Wall Street, continued its impressive track
record in the last six months. "Do-it-yourselfers" have sustained spending their
disposable income at these Retail (Building Supply) outlets. The strong domestic
economy and the market's continued infatuation with large cap stocks were major
reasons why Home Depot's stock approximately doubled over our holding period.
The second largest industry holding in the Fund is Services
(Advertising/Marketing). This industry has consistently maintained its large
weighting in the Fund over the last six months. Stocks in this industry include
Acxiom, Catalina Marketing, Interpublic and Omnicom Group. These stocks have
shown an exceptional performance in the last six months. This industry's
valuation and relative strength characteristics warrant its continued inclusion
in the Fund.
CURRENT OUTLOOK
The Advisor sees several attractive industry opportunities within the Fund.
Currently the Fund is positioned in three major areas: Retail, Services
(Advertising/ Marketing) and Capital Goods. This sector has been out of favor in
the six months period, but we see that changing soon. The Advisor's valuation
and relative strength selection criteria suggest that the Fund is positioned
correctly for the next market move. The Advisor believes that the Fund's broad
industry composition should mitigate some of the risk that is characteristic of
many sector funds.
11
<PAGE>
<TABLE>
<CAPTION>
CONSUMER CYCLICALS
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 95.8%
Top 10 Equity Holdings (% of Assets) 63.9%
Number of Stocks 25
Cash & Cash Equivalents 4.2%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Lowes Companies 13.5%
Fastenal Co. 10.8%
Astec Industries Inc. 7.0%
Teleflex Inc. 6.5%
Omnicom Group 5.0%
CDW Computer Centers 4.8%
Axciom Corporation 4.4%
Home Depot 4.3%
Dollar Tree Stores, Inc. 3.9%
Dollar General Corporation 3.7%
--------------------------------------------------------------------------------
TOP INDUSTRIES MARCH 31, 2000 (UNAUDITED)
Retail (Building Supplies) 29.5%
Services (Advertising/Mktg.) 22.1%
Manufacturing (Specialized) 16.5%
Retail (Discounters) 16.2%
Retail (Home Shopping) 4.6%
Retail Stores (Dept. Stores) 3.7%
Manufacturing (Diversified) 2.4%
Building Materials Group 0.9%
--------------------------------------------------------------------------------
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON CONSUMER S&P SUPERCOMPOSITE
CYCLICALS FUND 1500 INDEX
-------------- -------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $10,503 $16,993
CUMULATIVE
RETURN SINCE 5.03% 69.93%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 1.82% 21.45%
INCEPTION
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON CONSUMER S&P SUPERCOMPOSITE
CYCLICALS FUND 1500 INDEX
-------------- -------------------
<S> <C>
4.69% 18.17%
</TABLE>
*Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Consumer Cyclicals Fund are since the inception of the
Fund through 3/31/00 and for the one year period ended 3/31/00. The returns are
total returns, and include the reinvestment of dividends and capital gains. Past
performance does not guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted index
of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and the S&P 600.
It is comprised of 1500 stocks. The S&P SuperComposite 1500 Index is an
unmanaged index that includes the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
12
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
CONSUMER CYCLICALS
<TABLE>
<CAPTION>
Shares or Principal Amount Market Value
<S> <C>
COMMON STOCKS 95.8%
BUILDING MATERIALS GROUP 0.9%
11,600 Elcor Corp. $ 400,200
--------------------------------------------------------------------------------
Total Building Materials Group 400,200
RETAIL STORES (DEPT STORES) 3.7%
14,300 Federated Dept. Stores (a) 597,025
20,700 May Department Stores Co.(a) 589,950
14,500 Nordstrom Inc.(a) 427,750
--------------------------------------------------------------------------------
Total Retail Stores (Dept. Stores) 1,614,725
RETAIL (DISCOUNTERS) 16.2%
22,200 99 Cents Only Stores(a) 871,350
57,200 Dollar General Corporation(a) 1,537,250
31,100 Dollar Tree Stores Inc.(a) 1,621,088
73,600 Family Dollar Stores(a) 1,531,800
63,800 Ross Stores Inc.(a) 1,535,187
--------------------------------------------------------------------------------
Total Retail (Discounters) 7,096,675
RETAIL (HOME SHOPPING) 4.6%
23,800 CDW Computer Centers(a) 2,009,613
--------------------------------------------------------------------------------
Total Retail (Home Shopping) 2,009,613
RETAIL (BUILDING SUPPLIES) 29.5%
95,300 Fastenal Co. 4,562,488
27,950 Home Depot Inc. 1,802,775
56,000 Hughes Supply Inc. 868,000
97,500 Lowes Companies(a) 5,691,562
--------------------------------------------------------------------------------
Total Retail (Building Supplies) 12,924,825
SERVICES (ADVERTISING/MKTG) 22.1%
55,300 Acxiom Corporation(a) 1,838,725
57,000 Advo Inc.(a) 1,425,000
12,900 Catalina Marketing Corp.(a) 1,306,125
32,500 Interpublic Group Of Cos 1,535,625
22,600 Omnicom Group 2,111,688
36,900 True North Communications 1,450,631
--------------------------------------------------------------------------------
Total Services (Advertising/Mktg) 9,667,794
MANUFACTURING (DIVERSIFIED) 2.4%
25,100 Parker-Hannifin Corp. 1,036,944
--------------------------------------------------------------------------------
Total Manufacturing (Diversified) 1,036,944
MANUFACTURING (SPECIALIZED) 16.4%
110,300 Astec Industries Inc.(a) 2,929,844
29,500 Diebold Inc. 811,250
33,500 Pall Corp. 751,655
76,600 Teleflex Inc. 2,719,300
--------------------------------------------------------------------------------
Total Manufacturing (Specialized) 7,212,049
Total Common Stocks
(Cost $37,534,618) $ 41,962,825
--------------------------------------------------------------------------------
SHORT-TERM COMMERCIAL NOTES 4.2%
--------------------------------------------------------------------------------
818,778 Sara Lee Demand Note
5.73% 4/26/00 818,778
--------------------------------------------------------------------------------
191,487 Warner Lambert Demand Note
5.77% 11/21/00 191,487
--------------------------------------------------------------------------------
825,972 American Family Demand Note
5.77% 12/21/00 825,972
--------------------------------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $1,836,237) 1,836,237
--------------------------------------------------------------------------------
Total Investments 100.0%
(Cost $39,370,855) $43,799,062
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
(a) NON-INCOME PRODUCING SECURITY
13
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
ENERGY
PERFORMANCE
The ICON Energy Fund (the "Fund") opened on November 5, 1997. For the six months
ended March 31, 2000, the Fund appreciated 37.22%. The performance for the
Fund's benchmark, the S&P SuperComposite 1500 Index, was a gain of 18.52% over
that same period.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Energy Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, has
appreciated approximately 17% from six months ago. Following the fiscal year end
for ICON Funds on September 30, 1999, two different markets emerged. With
renewed Federal Reserve tightening, investors gravitated toward technology and
biotechnology issues. Despite generally excessive prices relative to fair value,
investors sought growth at any price that they hoped would be immune to
gradually increasing interest rates. Energy issues also participated on the
upside due to their own unique relationship to rising oil prices. At the other
end of the market, economic and interest rate sensitive sectors languished. For
almost two quarters the lure and fascination of "the new economy", e.g.,
internet, gene research and other hi-tech, futuristic concepts, provided
investors with a very exciting, but narrow market.
Companies in other basic, consumer, transportation and financial industries were
not idle, but were going about their business. In most cases, earnings were
growing while stock prices were generally being ignored. The notion of one
market, or "the market", appears not applicable today. Investors must look
industry by industry, and sector by sector, to find situations that fit their
investment style and objective.
INDUSTRY HIGHLIGHTS
The ICON Energy Fund has maintained its same industry composition during the
last six months. The Advisor's quantitative system, which includes both
valuation and relative strength, has dictated holding Oil (Domestic Integrated),
Drilling & Equipment stocks and Exploration/Production stocks. Relative to other
industries in the Energy sector, these industries generally are smaller cap and
experience more price fluctuation. The Advisor remains very bullish on these
three industry groups.
The largest industry holding in the Fund is Drilling & Equipment. Stocks held in
this industry include Transocean, Ensco and Weatherford. Ensco, the largest
stock in the industry has been a strong performer. As previously mentioned,
Drilling & Equipment stocks fluctuate considerably based on movements in the
price of oil. In the last six months, these stocks have benefited from potential
production cuts and increased demand for oil.
The second largest industry holding is Exploration & Production. Stocks held in
this industry include Apache, Kerr-McGee and Union Pacific Resources. As the
most recent annual period was coming to a close, this industry was exhibiting
excellent relative strength. The Advisor sees considerable appreciation
potential in the next twelve to eighteen months. While past performance cannot
predict future results, the Advisor expects that the share price increases in
this sector will continue.
CURRENT OUTLOOK
The Advisor remains focused in two major industry groups: Drilling & Equipment
and Exploration and Production. Commodity related industries can be subject to
significant volatility based on fluctuations in the underlying commodity. This
hurt the performance of the Fund in 1998 and early 1999 but has helped it since.
The Advisor does not speculate on the future direction of energy prices, but
trends have been promising. The Advisor's quantitative investment strategies
continue to dictate holding both Drilling & Equipment and Exploration &
Production stocks in the ICON Energy Fund.
14
<PAGE>
<TABLE>
<CAPTION>
ENERGY
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 91.7%
Top 10 Equity Holdings (% of Assets) 54.0%
Number of Stocks 23
Cash & Cash Equivalents 8.3%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Transocean Sedco Forex Inc. 6.6%
Ensco International Inc. 6.6%
Weatherford Intl. Inc. 6.0%
BJ Services Co. 5.8%
Smith International Inc. 5.8%
Nabors Industries 5.7%
Schlumberger Ltd. 4.7%
Global Marine Inc. 4.6%
Apache Corp. 4.2%
Noble Drilling Corporation 4.0%
--------------------------------------------------------------------------------
TOP INDUSTRIES MARCH 31, 2000 (UNAUDITED)
Oil & Gas (Drilling & Equip) 63.1%
Oil & Gas (Exploration/Prod) 24.6%
Oil (Domestic Integrated) 4.0%
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
S&P SUPERCOMPOSITE
ICON ENERGY FUND 1500 INDEX
---------------- -------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $11,090 $16,114
CUMULATIVE
RETURN SINCE 10.90% 61.14%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 4.40% 21.97%
INCEPTION
</TABLE>
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
S&P SUPERCOMPOSITE
ICON ENERGY FUND 1500 INDEX
---------------- -------------------
<S> <C>
64.91% 18.17%
</TABLE>
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Energy Fund are since the inception of the Fund through
3/31/00 and for the one year period ended 3/31/00. The returns are total
returns, and include the reinvestment of dividends and capital gains. Past
performance does not guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted index
of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and the S&P 600.
It is comprised of 1500 stocks. The S&P SuperComposite 1500 Index is an
unmanaged index that includes the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
15
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
ENERGY
Shares or Principal Amount Market Value
<S> <C>
COMMON STOCKS 91.7%
OIL & GAS (DRILLING & EQUIP.) 63.1%
25,600 Baker-Hughes Inc. $ 774,400
19,400 BJ Services Co.(a) 1,433,175
45,100 Ensco International Inc. 1,629,238
44,800 Global Marine Inc.(a) 1,136,800
21,600 Halliburton Co. 885,600
30,900 Helmerich & Payne 957,900
35,900 Nabors Industries(a) 1,393,369
23,600 Noble Drilling Corp.(a) 977,925
15,004 Schlumberger Ltd. 1,147,806
18,300 Smith International Inc.(a) 1,418,250
27,200 Tidewater Inc. 865,300
31,804 Transocean Sedco Forex Inc. 1,631,943
25,165 Weatherford Intl. Inc.(a) 1,483,161
--------------------------------------------------------------------------------
Total Oil & Gas (Drilling & Equip.) 15,734,867
OIL (DOMESTIC INTEGRATED)4.0%
16,800 Occidental Petroleum Corp.(a) 348,600
21,600 Unocal Corp. 642,600
--------------------------------------------------------------------------------
Total Oil (Domestic Integrated) 991,200
OIL & GAS (EXPLORATION/PROD) 24.6%
20,000 Anadarko Petroleum Corp. 773,750
20,600 Apache Corp. 1,024,850
21,100 Burlington Resources Inc. 780,700
11,300 Devon Energy Corporation `New' 548,756
15,594 Kerr-Mcgee Corp. 900,554
13,000 Murphy Oil Corp. 749,125
19,400 Noble Affiliates Inc. 636,562
48,400 Union Pac Res Group Comp. 701,800
--------------------------------------------------------------------------------
Total Oil & Gas (Exploration/Prod) 6,116,097
Total Common Stocks
(Cost $17,269,307) $22,842,164
--------------------------------------------------------------------------------
SHORT-TERM COMMERCIAL NOTES 8.3%
--------------------------------------------------------------------------------
147,156 General Mills Demand Note
5.73% 12/3/00 147,156
--------------------------------------------------------------------------------
712,625 Sara Lee Demand Note
5.73% 4/26/00 712,625
--------------------------------------------------------------------------------
195,303 Wisconsin Electic Demand Note
5.77% 4/4/00 195,303
--------------------------------------------------------------------------------
252,034 Warner Lambert Demand Note
5.77% 11/21/00 252,034
--------------------------------------------------------------------------------
769,478 American Family Demand Note
5.77% 12/21/00 769,478
--------------------------------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $2,076,595) 2,076,596
--------------------------------------------------------------------------------
Total Investments 100.0%
(Cost $19,345,902) $24,918,760
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
(a) NON-INCOME PRODUCING SECURITY
16
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
FINANCIAL SERVICES
PERFORMANCE
The ICON Financial Services Fund (the "Fund") opened on July 1, 1997. For the
six months ended March 31, 2000, the Fund appreciated 9.52%. The performance for
the Fund's benchmark, the S&P SuperComposite 1500 Index, was a gain of 18.52%
over that same period.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Financial Services Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, has
appreciated approximately 17% from six months ago. Following the fiscal year end
for ICON Funds on September 30, 1999, two different markets emerged. With
renewed Federal Reserve tightening, investors gravitated toward technology and
biotechnology issues. Despite generally excessive prices relative to fair value,
investors sought growth at any price that they hoped would be immune to
gradually increasing interest rates. Energy issues also participated on the
upside due to their own unique relationship to rising oil prices. At the other
end of the market, economic and interest rate sensitive sectors languished. For
almost two quarters, the lure and fascination of "the new economy", e.g.,
internet, gene research and other hi-tech, futuristic concepts, provided
investors with a very exciting, but narrow market.
Companies in other basic, consumer, transportation and financial industries were
not idle, but were going about their business. In most cases, earnings were
growing while stock prices were generally being ignored. The notion of one
market, or "the market", appears not applicable today. Investors must look
industry by industry, and sector by sector, to find situations that fit their
investment style and objective.
INDUSTRY HIGHLIGHTS
The ICON Financial Services Fund has seen considerable change in its holdings
over the duration of the last six months. The Insurance (Property/Casualty)
industry was sold as it no longer met the standards of the Advisor's
quantitative system. Four new industries were added to the Fund. These
industries were Investment Banking/Brokerage, Saving & Loan Companies, Insurance
(Life/Health) and Investment Management.
The largest industry holding in the Fund is Banks (Major Regional). Stocks in
this industry include BB&T, Fleet Boston, US Bancorp and Wells Fargo. Although
rising interest rates have had a negative impact on these stocks, valuations in
the industry remain favorable.
The second largest industry holding is Insurance (Life/Health). Insurance
(Life/Health) stocks held in the Fund include Delphi Financial Group,
Jefferson-Pilot, Protective Life and Reliastar Financial.
CURRENT OUTLOOK
The Advisor sees select opportunities within the Fund. The Financial Services
sector has been undervalued in the last six months, and we see that change
occurring in the next six months. Financial Services may very well lead the next
leg of the bull market. Based on their current valuation and relative strength
characteristics, the Advisor believes that Financial Services stocks are poised
for considerable gains despite the rising interest rate environment. The Fund
holdings are very well diversified and include stocks in nine different
industries.
17
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL SERVICES
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 51.7%
Top 10 Equity Holdings (% of Net assets) 47.5%
Number of Stocks 32
Cash and Cash Equivalents 48.3%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Jefferson-Pilot Corp. 5.4%
Charter One Fin Inc. 4.9%
Price (T. Rowe) Associates 4.9%
US Bancorp 4.7%
Edwards (AG) Inc. 4.7%
Wells Fargo and Company 4.6%
Old Kent Financial Corporation 4.6%
Fleet Boston Financial Corp. 4.6%
BB&T Corp. 4.6%
Bear Stearns Companies Inc. 4.5%
--------------------------------------------------------------------------------
TOP INDUSTRIES MARCH 31, 2000 (UNAUDITED)
Banks (Major Regional) 11.0%
Insurance (Life/Health) 8.7%
Investment Banking/Brokerage 8.0%
Savings & Loan Companies 6.4%
Investment Management 5.6%
Banks (Regional) 5.4%
Consumer Finance 4.2%
Financial (Diversified) 1.9%
Banks (Money Center) 0.5%
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON FINANCIAL S&P SUPERCOMPOSITE
SERVICES FUND 1500 INDEX
-------------- -------------------
<S> <C> <C>
Growth of $10,000
Since Inception $11,343 $17,311
Cumulative
Return Since 13.43% 73.11%
Inception
Average Annual
Return Since 4.69% 22.08%
Inception
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON FINANCIAL S&P SUPERCOMPOSITE
SERVICES FUND 1500 INDEX
-------------- -------------------
<S> <C>
(4.50%) 18.17%
</TABLE>
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Financial Services Fund are since the inception of the
Fund through 3/31/00 and for the one year period ended 3/31/00. The returns are
total returns, and include the reinvestment of dividends and capital gains. Past
performance does not guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted index
of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and the S&P 600.
It is comprised of 1500 stocks. The S&P SuperComposite 1500 Index is an
unmanaged index that includes the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
18
<PAGE>
FINANCIAL SERVICES
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
Shares or Principal Amount Market Value
<S> <C>
COMMON STOCKS 51.7%
INVESTMENT BANKING/BROKERAGE 8.0%
65,700 Bear Stearns Companies Inc. $2,997,563
77,400 Edwards (AG) Inc. 3,096,000
29,000 Lehman Brothers Holdings Inc. 2,813,000
--------------------------------------------------------------------------------
Total Investment Banking/Brokerage 8,906,563
SAVINGS & LOAN COMPANIES 6.4%
175,700 Anchor Bancorp Wisconsin Inc.(a) 2,789,237
154,800 Charter One Fin Inc.(a) 3,250,800
48,600 Downey Financial Corp.(a) 1,032,750
--------------------------------------------------------------------------------
Total Savings & Loan Companies 7,072,787
BANKS (REGIONAL) 5.4%
93,800 Old Kent Financial Corp.(a) 3,030,912
117,000 Southtrust Corp.(a) 2,976,188
--------------------------------------------------------------------------------
Total Banks (Regional) 6,007,100
BANKS (MAJOR REGIONAL) 11.0%
107,200 BB&T Corp.(a) 3,008,300
82,900 Fleet Boston Financial Corp.(a) 3,025,850
141,600 U S Bancorpa 3,097,500
74,400 Wells Fargo And Companya 3,045,750
--------------------------------------------------------------------------------
Total Banks (Major Regional) 12,177,400
BANKS (MONEY CENTER) 0.5%
4,100 Chase Manhattan Corp. 357,469
1,600 Morgan (JP) & Co. 210,800
--------------------------------------------------------------------------------
Total Banks (Money Center) 568,269
CONSUMER FINANCE 4.2%
159,500 Americredit Corp.(a) 2,601,844
27,800 Capital One Finl Corp. 1,332,663
14,750 MBNA Corp. 376,125
3,500 Providian Financial Corp. 303,187
--------------------------------------------------------------------------------
Total Consumer Finace 4,613,819
INSURANCE (LIFE/HEALTH) 8.7%
50,000 Delphi Financial Group - Cl Aa 1,518,750
53,600 Jefferson-Pilot Corp.(a) 3,567,750
52,800 Protective Life Corp.(a) 1,676,400
84,300 Reliastar Financial Corp.(a) 2,855,663
--------------------------------------------------------------------------------
Total Insurance (Life/Health) 9,618,563
FINANCIAL (DIVERSIFIED) 1.9%
2,200 American Express 327,663
3,200 American General Corp. 179,600
6,225 Citigroup Inc. 369,220
3,600 Fed Home Loan Mtg Co. 159,075
3,000 Federal Natl Mortgage Assn. 169,312
2,800 Morgan Stanley Dean Witter 228,375
1,000 SEI Corp.(a) 112,250
15,000 SLM Holding Corp.(a) 514,500
--------------------------------------------------------------------------------
Total Financial (Diversified) 2,059,995
INVESTMENT MANAGEMENT 5.6%
72,300 Alliance Capital Mgmt Hldg. $2,995,931
81,900 Price (T. Rowe) Associates 3,235,050
--------------------------------------------------------------------------------
Total Investment Management 6,230,981
Total Common Stocks
Cost ($54,733,492) 57,255,477
--------------------------------------------------------------------------------
SHORT-TERM NOTES 48.3%
--------------------------------------------------------------------------------
22,630,163 US Treasury Bill
6.3% 4/20/2000 22,630,163
--------------------------------------------------------------------------------
29,604,546 US Treasury Bill
4.53% 4/27/2000 29,604,546
--------------------------------------------------------------------------------
448,077 General Mills Demand Note
5.74% 12/3/2000 448,077
--------------------------------------------------------------------------------
166,302 Sara Lee Demand Note
5.73% 4/26/2000 166,302
--------------------------------------------------------------------------------
280,777 Warner Lambert Demand Note
5.77% 11/21/2000 280,777
--------------------------------------------------------------------------------
420,220 American Family Demand Note
5.77% 12/21/2000 420,220
--------------------------------------------------------------------------------
Total Short-Term Notes
Cost ($53,550,085) 53,550,085
--------------------------------------------------------------------------------
Total Investments 100.0%
Cost ($108,283,577) $110,805,562
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
(a) NON-INCOME PRODUCING SECURITY
19
<PAGE>
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
HEALTHCARE
PERFORMANCE
The ICON Healthcare Fund (the "Fund") opened on February 24, 1997. For the six
months ended March 31, 2000, the Fund appreciated 31.65%. The performance for
the Fund's benchmark, the S&P SuperComposite 1500 Index, was a gain of 18.52%
over that same period.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Healthcare Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, has
appreciated approximately 17% from six months ago. Following the fiscal year end
for ICON Funds on September 30, 1999, two different markets emerged. With
renewed Federal Reserve tightening, investors gravitated toward technology and
biotechnology issues. Despite generally excessive prices relative to fair value,
investors sought growth at any price that they hoped would be immune to
gradually increasing interest rates. Energy issues also participated on the
upside due to their own unique relationship to rising oil prices. At the other
end of the market, economic and interest rate sensitive sectors languished. For
almost two quarters, the lure and fascination of "the new economy", e.g.,
internet, gene research and other hi-tech, futuristic concepts, provided
investors with a very exciting, but narrow market.
Companies in other basic, consumer, transportation and financial industries were
not idle, but were going about their business. In most cases, earnings were
growing while stock prices were generally being ignored. The notion of one
market, or "the market", appears not applicable today. Investors must look
industry by industry, and sector by sector, to find situations that fit their
investment style and objective.
INDUSTRY HIGHLIGHTS
The ICON Healthcare Fund has seen considerable activity in the last six months.
Two new industry positions have been added and one has been sold. One industry
sold during the last six months was Healthcare (Long Term Care). The new
industries added to the Fund were Healthcare (Hospital Management) and
Healthcare (Special Services), which offer good growth potential without
excessive valuations.
The largest industry holding in the Fund is Healthcare (Drugs). Stocks held in
this industry include Alpharma, Mylan Labs and Medimmune. These companies offer
very attractive growth potential at a reasonable price. Some of these stocks
have posted considerable results, and the Advisor is still bullish on the
prospects in this industry.
The second largest industry holding is Healthcare (Medical Products/Supplies).
Medical Products/ Supplies stocks held in the Fund include Bausch & Lomb,
Cooper, Syborn and Wesley Jessen. The Advisor is still optimistic on the
industry.
CURRENT OUTLOOK
The Advisor has focused on industries offering good growth prospects at
reasonable prices. One of these industries, which was a stellar performer within
the last six months, was the Biotechnology industry. The Advisor added this
position when it was fairly undervalued and sold it when it had its exceptional
run. The Fund is well diversified and has holdings in six different industries.
20
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 66.9%
Top 10 Equity Holdings (% of Assets) 44.3%
Number of Stocks 18
Cash & Cash Equivalents 33.1%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Watson Pharmaceuticals Inc. 5.7%
Sybron International Corp. 5.2%
Biomatrix 4.6%
Universal Health Services 4.5%
Cooper Companies 4.4%
Wellpoint Health Networks 4.3%
Aetna Inc. 4.2%
Wesley Jessen Visoncare 4.0%
Renal Care Group Inc. 3.8%
US Oncology Inc. 3.6%
--------------------------------------------------------------------------------
TOP INDUSTRIES MARCH 31, 2000 (UNAUDITED)
Healthcare (Drugs) 20.7%
Healthcare (Med Prods/Sups) 15.3%
Healthcare (Managed Care) 12.1%
Healthcare (Special Serv) 9.7%
Biotechnology 4.6%
Healthcare (Hospital Mgmt) 4.5%
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON HEALTHCARE S&P SUPERCOMPOSITE
FUND 1500 INDEX
-------------- -------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $15,234 $19,134
CUMULATIVE
RETURN SINCE 52.34% 91.34%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 14.55% 23.29%
INCEPTION
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON HEALTHCARE S&P SUPERCOMPOSITE
FUND 1500 INDEX
-------------- -------------------
<S> <C>
12.84% 18.17%
</TABLE>
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Healthcare Fund are since the inception of the Fund
through 3/31/00 and for the one year period ended 3/31/00. The returns are total
returns, and include the reinvestment of dividends and capital gains. Past
performance does not guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted index
of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and the S&P 600.
It is comprised of 1500 stocks. The S&P SuperComposite 1500 Index is an
unmanaged index that includes the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
21
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
Shares or Principal Amount Market Value
<S> <C>
COMMON STOCKS 66.9%
HEALTHCARE (DRUGS) 20.7%
35,800 Alpharma Inc -Cl A $1,315,650
33,000 Barr Laboratories Inc.(a) 1,386,000
42,100 ICN Pharmaceuticals Inc. 1,147,225
6,100 Medimmune Inc.(a) 1,062,163
39,000 Mylan Laboratories 1,072,500
56,900 Watson Pharmaceuticals Inc.(a) 2,258,218
--------------------------------------------------------------------------------
Total Healthcare (Drugs) 8,241,756
HEALTHCARE (HOSPITAL MGMT) 4.5%
36,400 Universal Health Svcs.-Cl B(a) 1,783,600
--------------------------------------------------------------------------------
Total Healthcare (Hospital Mgmt.) 1,783,600
HEALTHCARE (MANAGED CARE) 12.1%
30,300 Aetna Inc. 1,687,331
314,900 US Oncology(a) 1,417,050
24,600 Wellpoint Hlth Netwrk-Cl A(a) 1,718,925
--------------------------------------------------------------------------------
Total Healthcare (Managed Care) 4,823,306
HEALTHCARE (MED PRODS/SUPS) 15.3%
12,000 Bausch & Lomb Inc. 626,250
54,900 Cooper Companies 1,767,094
72,200 Sybron Intl. Corp.(a) 2,093,800
44,700 Wesley Jessen Visioncare(a) 1,606,406
--------------------------------------------------------------------------------
Total Healthcare (Med Prods/Sups) 6,093,550
HEALTHCARE (SPECIAL. SERV) 9.7%
119,000 Covance Inc.(a) 1,279,250
62,900 Quintiles Transnational Corp.(a) 1,073,231
69,300 Renal Care Group Inc.(a) 1,502,945
--------------------------------------------------------------------------------
Total Healthcare (Special Serv.) 3,855,426
BIOTECHNOLOGY 4.6%
71,500 Biomatrix(a) 1,823,250
--------------------------------------------------------------------------------
Total Biotechnology 1,823,250
Total Common Stocks
(Cost $27,138,688) $26,620,888
--------------------------------------------------------------------------------
SHORT-TERM NOTES 33.1%
--------------------------------------------------------------------------------
12,037,231 US Treasury Bill
5.70% 4/20/00 12,037,231
--------------------------------------------------------------------------------
308,046 General Mills Demand Note
5.73% 12/3/00 308,046
--------------------------------------------------------------------------------
260,843 Sara Lee Demand Note
5.73% 4/26/00 260,843
--------------------------------------------------------------------------------
310,537 Wisconsin Electric Demand Note
5.77% 4/4/00 310,537
--------------------------------------------------------------------------------
83,293 Warner Lambert Demand Note
5.77% 11/21/00 83,293
--------------------------------------------------------------------------------
143,350 American Family Demand Note
5.77% 12/21/00 143,350
--------------------------------------------------------------------------------
Total Short-Term Notes
(Cost $13,143,300) 13,143,300
--------------------------------------------------------------------------------
Total Investments 100.0%
(Cost $40,281,988) $39,764,188
--------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
(a) NON-INCOME PRODUCING SECURITY
22
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
LEISURE
PERFORMANCE
The ICON Leisure Fund (the "Fund") opened on May 9, 1997. For the six months
ended March 31, 2000, the Fund depreciated 6.81%. The performance for the Fund's
benchmark, the S&P SuperComposite 1500 Index, was a gain of 18.52% over that
same period.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As
such, the Index generally benefits during periods in the stock market
characterized by appreciating large capitalization stocks. Additionally, the
benchmark is a diversified measure of the U.S. stock market and includes many
more investment options than are available to the ICON Leisure Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, has
appreciated approximately 17% from six months ago. Following the fiscal year end
for ICON Funds on September 30, 1999, two different markets emerged. With
renewed Federal Reserve tightening, investors gravitated toward technology and
biotechnology issues. Despite generally excessive prices relative to fair value,
investors sought growth at any price that they hoped would be immune to
gradually increasing interest rates. Energy issues also participated on the
upside due to their own unique relationship to rising oil prices. At the other
end of the market, economic and interest rate sensitive sectors languished. For
almost two quarters, the lure and fascination of "the new economy", e.g.,
internet, gene research and other hi-tech, futuristic concepts, provided
investors with a very exciting, but narrow market.
Companies in other basic, consumer, transportation and financial industries were
not idle, but were going about their business. In most cases, earnings were
growing while stock prices were generally being ignored. The notion of one
market, or "the market", appears not applicable today. Investors must look
industry by industry, and sector by sector, to find situations that fit their
investment style and objective.
INDUSTRY HIGHLIGHTS
The ICON Leisure Fund has seen some activity in the last six months. Two
industry positions have been sold. Based on the Advisor's quantitative system,
which includes both valuation and relative strength, stocks in the Foods and
Tobacco industries were sold during the last six months.
The largest industry holding in the Fund remains Gaming (Lottery & Parimutuel).
The Fund's four Gaming holdings are Harrah's, IGT, Mandalay Resort Group
(formerly Circus Circus), and Mirage Resorts. The strong domestic economy and
improvements in the Asian economies have improved the bottom line of many Gaming
companies. They continue to build new projects and focus their advertising on
attracting families. This success has translated into recovering share prices
for many of the Gaming stocks that have trailed the market for the last few
years.
The second largest industry holding is Leisure Time (Products). Prominent
Leisure Time stocks held in the Fund include Brunswick, Callaway Golf, Hasbro
and Mattel.
CURRENT OUTLOOK
The Advisor sees many attractive industry opportunities within the Fund. The
Fund is currently positioned in four different industries, all of which have
favorable valuation and relative strength characteristics. The Leisure sector
offers ample opportunity for diversification as many Leisure industries operate
in very different markets. The Fund also holds both cyclical and non-cyclical
stocks. The Advisor feels that this diversification should reduce the volatility
within the Fund.
23
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 100.0%
Top 10 Equity Holdings (% of Net Assets) 80.5%
Number of Stocks 13
Cash & Cash Equivalents 0.0%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Mirage Resorts Inc. 10.3%
Brunswick Corp. 9.6%
Brinker Intl Inc. 9.4%
Intl Game Technology 9.2%
Outback Steakhouse Inc. 8.6%
Marriot Intl Inc. 8.5%
Hilton Hotels Corp. 8.3%
Callaway Golf Co. 6.0%
Hasbro Inc. 5.7%
Mattel Inc. 4.9%
--------------------------------------------------------------------------------
TOP INDUSTRIES MARCH 31, 2000 (UNAUDITED)
Gaming, Lottery & Parimutuel 30.4%
Leisure Time (Products) 27.9%
Restaurants 23.8%
Lodging-Hotels 17.9%
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON LEISURE S&P SUPERCOMPOSITE
FUND 1500 INDEX
-------------- -------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $12,646 $18,764
CUMULATIVE
RETURN SINCE 26.46% 87.64%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 8.44% 24.28%
INCEPTION
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON LEISURE S&P SUPERCOMPOSITE
FUND 1500 INDEX
-------------- -------------------
<S> <C>
(12.27%) 18.17%
</TABLE>
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Leisure Fund are since the inception of the Fund
through 3/31/00 and for the one year period ended 3/31/00. The returns are total
returns, and include the reinvestment of dividends and capital gains. Past
performance does not guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted index
of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and the S&P 600.
It is comprised of 1500 stocks. The S&P SuperComposite 1500 Index is an
unmanaged index that includes the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
24
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
Shares Market Value
<S> <C>
COMMON STOCKS 100.0%
LODGING-HOTELS 17.9%
71,210 Hilton Hotels Corp. $ 551,878
17,800 Marriott Intl. Inc. 560,700
--------------------------------------------------------------------------------
Total Lodging 1,112,578
LEISURE TIME (PRODUCTS) 27.9%
33,500 Brunswick Corp. 634,406
25,600 Callaway Golf Co. 396,800
23,000 Hasbro Inc. 379,500
31,000 Mattel Inc. 323,563
--------------------------------------------------------------------------------
Total Leisure Time (Products) 1,734,269
RESTAURANTS 23.8%
20,900 Brinker Intl. Inc. 620,469
17,800 Outback Steakhouse Inc. 570,713
14,300 Wendy's International Inc. 288,681
--------------------------------------------------------------------------------
Total Restaurants 1,479,863
GAMING, LOTTERY & PARIMUTUEL 30.4%
16,000 Harrahs Entertainment Inc. 297,000
28,000 Intl. Game Technology(a) 607,250
18,000 Mandalay Resort Group(a) 303,750
35,100 Mirage Resorts Inc.(a) 680,061
--------------------------------------------------------------------------------
Total Gaming, Lottery & Parimutuel 1,888,061
Total Common Stocks and Investments
Cost ($6,510,588) $6,214,771
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
(a) NON-INCOME PRODUCING SECURITY
25
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
TECHNOLOGY
PERFORMANCE
The ICON Technology Fund (the "Fund") opened on February 19, 1997. For the six
months ended March 31, 2000, the Fund appreciated 72.27%. The performance for
the Fund's benchmark, the S&P SuperComposite 1500 Index, was a gain of 18.52%
over that same period.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Technology Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, has
appreciated approximately 17% from six months ago. Following the fiscal year end
for ICON Funds on September 30, 1999, two different markets emerged. With
renewed Federal Reserve tightening, investors gravitated toward technology and
biotechnology issues. Despite generally excessive prices relative to fair value,
investors sought growth at any price that they hoped would be immune to
gradually increasing interest rates. Energy issues also participated on the
upside due to their own unique relationship to rising oil prices. At the other
end of the market, economic and interest rate sensitive sectors languished. For
almost two quarters, the lure and fascination of "the new economy", e.g.,
internet, gene research and other hi-tech, futuristic concepts, provided
investors with a very exciting, but narrow market.
Companies in other basic, consumer, transportation and financial industries were
not idle, but were going about their business. In most cases, earnings were
growing while stock prices were generally being ignored. The notion of one
market, or "the market", appears not applicable today. Investors must look
industry by industry, and sector by sector, to find situations that fit their
investment style and objective.
INDUSTRY HIGHLIGHTS
The ICON Technology Fund has seen considerable activity in the last six months.
New industry positions have been added, and old ones sold. Based on the
Advisor's quantitative system, which includes both valuation and relative
strength, stocks in the Electronics (Instrument) industry were sold during the
last six months. New industries added to the Fund were Computer (Hardware),
Computers (Peripherals), Services (Computer Systems) and Services (Data
Processing).
The largest industry holding in the Fund is Electronics (Component
Distribution). Stocks in this industry include Arrow Electronics, Avent and
Grainger. These stocks have posted solid gains over the last six months.
The second largest industry holding is Computer (Hardware). Hardware stocks held
in the Fund include Apex, Dell and NCR. Hardware companies have profited from
post-Y2K order increases over the past 3 months. U.S. businesses and retail
consumers continue to spend heavily on computers, and the Advisor feels that
this trend is not likely to slow down soon.
CURRENT OUTLOOK
The Advisor sold into the strength of many industries within the Technology
sector in the last six months. Technology-related industries can be subject to
significant volatility as investor enthusiasm waxes and wanes, but the long-term
outlook for companies in the sector is positive. The Fund is currently
positioned in eight different industries. It does not include many of the large
cap stocks that dominate the sector, such as Microsoft, Cisco, IBM and EMC.
Instead, the Fund contains more small and mid cap companies that still offer
reasonable value. This diversified group has the potential to participate in
technology advances, but has been selected with risk in mind.
26
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 82.2%
Top 10 Equity Holdings (% of Assets) 60.7%
Number of Stocks 20
Cash & Cash Equivalents 17.8%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Arrow Electronics Inc. 9.2%
Dell Computer Corp. 8.3%
Plantronics Inc. 7.7%
Avent Inc. 6.2%
Tellabs Inc. 6.1%
Grainger (WW) Inc. 5.6%
Sungard Data Systems Inc. 4.7%
Micros Systems Inc. 4.7%
Apex Inc. 4.1%
Network Appliance Inc. 4.1%
--------------------------------------------------------------------------------
TOP INDUSTRIES MARCH 31, 2000 (UNAUDITED)
Electronics (Component Dist) 20.6%
Computer (Hardware) 15.8%
Communications Equipment 13.5%
Computers (Peripherals) 13.3%
Services (Computer Systems) 11.3%
Electronics (Semiconductors) 4.8%
Services (Data Processing) 2.5%
Photography/Imaging 0.4%
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON TECHNOLOGY S&P SUPERCOMPOSITE
FUND 1500 INDEX
-------------- -------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $36,187 $19,064
CUMULATIVE
RETURN SINCE 261.87% 90.64%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 51.17% 23.04%
INCEPTION
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON TECHNOLOGY S&P SUPERCOMPOSITE
FUND 1500 INDEX
-------------- -------------------
<S> <C>
133.62% 18.17%
</TABLE>
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Technology Fund are since the inception of the Fund
through 3/31/00 and for the one year period ended 3/31/00. The returns are total
returns, and include the reinvestment of dividends and capital gains. Past
performance does not guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted index
of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and the S&P 600.
It is comprised of 1500 stocks. The S&P SuperComposite 1500 Index is an
unmanaged index that includes the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
27
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
Shares or Principal Amount Market Value
<S> <C>
COMMON STOCKS 82.2%
PHOTOGRAPHY/IMAGING 0.4%
30,000 IKON Office Solutions $ 185,625
--------------------------------------------------------------------------------
Total Photography/Imaging 185,625
COMMUNICATIONS EQUIPMENT 13.5%
39,200 Plantronics Inc.(a) 3,652,950
46,500 Tellabs Inc.(a) 2,928,773
--------------------------------------------------------------------------------
Total Communications Equipment 6,581,723
COMPUTER (HARDWARE) 15.8%
53,200 Apex Inc.(a) 1,975,050
72,900 Dell Computer Corp.(a) 3,932,044
43,800 NCR Corporation(a) 1,757,475
--------------------------------------------------------------------------------
Total Computer (Hardware) 7,664,569
COMPUTERS (PERIPHERALS) 13.3%
12,400 Lexmark Intl. Grp. Inc.-Cl A(a) 1,311,300
35,600 Micros Systems Inc.(a) 2,240,575
23,800 Network Appliance Inc.(a) 1,969,450
26,100 Xircom Inc.(a) 965,700
--------------------------------------------------------------------------------
Total Computers (Peripherals) 6,487,025
ELECTRONICS (COMPONENT DIST.) 20.6%
124,700 Arrow Electronics Inc.(a) 4,395,675
47,200 Avnet Inc. 2,973,600
49,100 Grainger (W W) Inc. 2,663,675
--------------------------------------------------------------------------------
Total Electronics (Component Dist.) 10,032,950
ELECTRONICS (SEMICONDUCTORS) 4.8%
37,400 Dallas Semiconductor Corp.(a) 1,313,675
15,900 Microchip Technology Inc.(a) 1,045,425
--------------------------------------------------------------------------------
Total Electronics (Semiconductors) 2,359,100
SERVICES (COMPUTER SYSTEMS) 11.3%
9,900 Computer Sciences Corp.(a) $ 783,338
63,900 Gerber Scientific Inc. 1,234,069
49,900 Keane Inc.(a) 1,259,974
59,400 Sungard Data Systems Inc.(a) 2,242,350
--------------------------------------------------------------------------------
Total Services (Computer Systems) 5,519,731
SERVICES (DATA PROCESSING) 2.5%
42,300 Nova Corp/Ga(a) 1,231,988
--------------------------------------------------------------------------------
Total Services (Data Processing) 1,231,988
Total Common Stocks
(Cost $32,699,512) 40,062,711
--------------------------------------------------------------------------------
SHORT-TERM NOTES 17.8%
--------------------------------------------------------------------------------
6,703,048 US Treasury Bill
4.53% 4/27/00 6,703,048
--------------------------------------------------------------------------------
1,329,649 Sara Lee Demand Note
5.73% 4/26/00 1,329,649
--------------------------------------------------------------------------------
236,787 Wisconsin Electric Demand Note
5.77% 4/4/00 236,787
--------------------------------------------------------------------------------
322,806 Warner Lambert Demand Note
5.77% 11/21/00 322,806
--------------------------------------------------------------------------------
Total Short-Term Notes
(Cost $8,592,290) 8,592,290
--------------------------------------------------------------------------------
Total Investments 100.0%
(Cost $41,291,802) $48,655,001
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
(a) NON-INCOME PRODUCING SECURITY
28
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
TELECOMMUNICATION AND UTILITIES
PERFORMANCE
The ICON Telecommunication and Utilities Fund (the "Fund") opened on July 9,
1997. For the six months ended March 31, 2000, the Fund depreciated 2.69%. The
performance for the Fund's benchmark, the S&P SuperComposite 1500 Index, was a
gain of 18.52% over that same period.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Telecommunication and Utilities Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, has
appreciated approximately 17% from six months ago. Following the fiscal year end
for ICON Funds on September 30, 1999, two different markets emerged. With
renewed Federal Reserve tightening, investors gravitated toward technology and
biotechnology issues. Despite generally excessive prices relative to fair value,
investors sought growth at any price that they hoped would be immune to
gradually increasing interest rates. Energy issues also participated on the
upside due to their own unique relationship to rising oil prices. At the other
end of the market, economic and interest rate sensitive sectors languished. For
almost two quarters, the lure and fascination of "the new economy", e.g.,
internet, gene research and other hi-tech, futuristic concepts, provided
investors with a very exciting, but narrow market.
Companies in other basic, consumer, transportation and financial industries were
not idle, but were going about their business. In most cases, earnings were
growing while stock prices were generally being ignored. The notion of one
market, or "the market", appears not applicable today. Investors must look
industry by industry, and sector by sector, to find situations that fit their
investment style and objective.
INDUSTRY HIGHLIGHTS
The ICON Telecommunication and Utilities Fund has seen limited activity in the
last six months. The Fund continues to hold the Telephone and Electric Companies
industries.
The largest industry holding is Electric Companies. The stocks held in the Fund
include Duke Power, PECO Energy and FPL Group. These stocks have been under
pressure because of the rise in the interest rates. However, the Advisor
believes that the healthy dividends that these companies pay out should help to
support stock prices in the future. Some of the largest holdings in the
Telephone industry include Telephone & Data, SBC Communications, Global
Crossing, US West, Bell Atlantic and Bellsouth. These stocks have posted solid
gains over the last six months as the companies post healthy earnings growth.
Moreover, consolidation continues in the Telephone industry and in related
telecommunications industries, spurred in part by the Telecommunication Act of
1996.
CURRENT OUTLOOK
The Advisor sees some attractive industry opportunities within the Fund.
Business and consumer spending on telecommunications services and products
should continue apace. The Electric Utility industry might remain under pressure
if interest rates continue to rise. However, utility stocks do also tend to act
as defensive investments in market downturns as they traditionally provide a
steady stream of dividends.
29
<PAGE>
<TABLE>
<CAPTION>
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 65.1%
Top 10 Equity Holdings (% of Assets) 34.5%
Number of Stocks 24
Cash & Cash Equivalents 34.9%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Telephone & Data 4.3%
SBC Communications Inc. 4.2%
Duke Power Co. 3.6%
US West Inc. 3.6%
Global Crossing Ltd. 3.6%
Peco Energy Company 3.3%
FPL Group Inc. 3.2%
Southern Co. 3.0%
Carolina Power & Light 2.9%
GTE Corp. 2.8%
--------------------------------------------------------------------------------
TOP INDUSTRIES MARCH 31, 2000 (UNAUDITED)
Electric Companies 38.1%
Telephone 27.0%
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON TELECOMMUNICATION S&P SUPERCOMPOSITE
& UTILITIES FUND 1500 INDEX
---------------------- ------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $15,960 $16,993
CUMULATIVE
RETURN SINCE 59,60% 69.93%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 18.69% 21.45%
INCEPTION
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON TELECOMMUNICATION S&P SUPERCOMPOSITE
& UTILITIES FUND 1500 INDEX
---------------------- ------------------
<S> <C> <C>
5.62% 18.17%
</TABLE>
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Telecommunication and Utilities Fund are since the
inception of the Fund through 3/31/00 and for the one year period ended 3/31/00.
The returns are total returns, and include the reinvestment of dividends and
capital gains. Past performance does not guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted index
of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and the S&P 600.
It is comprised of 1500 stocks. The S&P SuperComposite 1500 Index is an
unmanaged index that includes the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
30
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
Shares or Principal Amount Market Value
<S> <C>
COMMON STOCKS 65.1%
TELEPHONE 27.0%
2,462 Alltel Corp. $ 155,260
2,970 Bell Atlantic Corp. 181,541
3,900 Bellsouth Corp. 183,300
1,425 Centurytel 52,903
5,800 Global Crossing Ltd. 237,438
2,600 GTE Corp. 184,600
6,632 SBC Communications Inc. 278,544
2,600 Telephone & Data 288,600
3,300 US West Inc. 239,662
--------------------------------------------------------------------------------
Total Telephone 1,801,848
ELECTRIC COMPANIES 38.1%
5,600 American Electric Power 166,950
6,000 Carolina Power & Light 194,625
7,900 Cinergy Corp. 169,850
5,600 Consolidated Edison, Inc. 162,400
1,449 Dominion Resources Inc. 55,696
4,600 Duke Power Co. 241,500
9,700 Edison International 160,656
7,600 Entergy Corp. 153,425
4,600 FPL Group Inc. 211,888
8,100 Pacific Gas & Electric 170,100
5,900 Peco Energy Co. 217,563
5,900 Public Service Enterprise 174,787
3,700 Reliant Energy, Inc. 86,719
9,200 Southern Co. 200,100
6,100 Texas Utilities Co. 181,093
--------------------------------------------------------------------------------
Total Electric Companies 2,547,352
Total Common Stocks
(Cost $4,652,921) $4,349,200
--------------------------------------------------------------------------------
SHORT-TERM NOTES 34.9%
--------------------------------------------------------------------------------
1,113,396 US Treasury Bill
4.53% 4/27/00 1,113,396
--------------------------------------------------------------------------------
238,061 General Mills Demand Note
5.73% 12/3/00 238,061
--------------------------------------------------------------------------------
260,743 Sara Lee Demand Note
5.73% 4/26/00 260,743
--------------------------------------------------------------------------------
238,061 Wisconsin Electric Demand Note
5.77% 4/4/00 238,061
--------------------------------------------------------------------------------
238,061 Warner Lambert Demand Note
5.77% 11/21/00 238,061
--------------------------------------------------------------------------------
240,287 American Family Demand Note
5.77% 12/21/00 240,287
--------------------------------------------------------------------------------
Total Short-Term Notes
(Cost $2,328,609) 2,328,609
--------------------------------------------------------------------------------
Total Investments 100.0%
(Cost $6,981,530) $6,677,809
--------------------------------------------------------------------------------
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
(A) NON-INCOME PRODUCING SECURITY
31
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
TRANSPORTATION
PERFORMANCE
The ICON Transportation Fund (the "Fund") opened on May 9, 1997. For the six
months ended March 31, 2000, the Fund depreciated 2.00%. The performance for the
Fund's benchmark, the S&P SuperComposite 1500 Index, was a gain of 18.52% over
that same period.
The S&P SuperComposite 1500 Index is a capitalization weighted index. As such,
the Index generally benefits during periods in the stock market characterized by
appreciating large capitalization stocks. Additionally, the benchmark is a
diversified measure of the U.S. stock market and includes many more investment
options than are available to the ICON Transportation Fund.
The U.S. stock market, as measured by the large capitalization S&P 500, has
appreciated approximately 17% from six months ago. Following the fiscal year end
for ICON Funds on September 30, 1999, two different markets emerged. With
renewed Federal Reserve tightening, investors gravitated toward technology and
biotechnology issues. Despite generally excessive prices relative to fair value,
investors sought growth at any price that they hoped would be immune to
gradually increasing interest rates. Energy issues also participated on the
upside due to their own unique relationship to rising oil prices. At the other
end of the market, economic and interest rate sensitive sectors languished. For
almost two quarters, the lure and fascination of "the new economy", e.g.,
internet, gene research and other hi-tech, futuristic concepts, provided
investors with a very exciting, but narrow market.
Companies in other basic, consumer, transportation and financial industries were
not idle, but were going about their business. In most cases, earnings were
growing while stock prices were generally being ignored. The notion of one
market, or "the market", appears not applicable today. Investors must look
industry by industry, and sector by sector, to find situations that fit their
investment style and objective.
INDUSTRY HIGHLIGHTS
The ICON Transportation Fund has seen limited activity in the last six months.
One new industry position was added, and one position, Trucks & Parts, was sold.
Based on the Advisor's quantitative system, which includes both valuation and
relative strength, stocks in the Airlines industry were added to the Fund.
The largest industry holding in the Fund is Airlines. Stocks in this industry
include Skywest, US Airways, Alaska Airgroup and Atlantic Coast. These stocks
have posted modest gains over the last six months.
The second largest industry holding is Truckers. Stocks held include US
Freightways, M S Carriers and Landstar. Strong demand for shipping has been
offset somewhat by rising oil prices and a tight labor market. Compared to the
beginning of the decade, the trucking industry is significantly more efficient
and competitive. Even in the face of difficult operating conditions, companies
have continued to produce solid results.
CURRENT OUTLOOK
The Advisor sees many attractive industry opportunities within the
Transportation sector. Transportation companies, which are generally mid and
small cap firms, have not performed as well as the broader market for the past
few years. This performance gap has created a number of compelling
opportunities. The Advisor foresees a considerable upside move for this
industry, especially due to the recent drop in the oil prices. The Fund is
currently positioned in five different industries, which should help to mitigate
volatility.
32
<PAGE>
TRANSPORTATION
<TABLE>
<CAPTION>
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 90.4%
Top 10 Equity Holdings (% of Assets) 57.7%
Number of Stocks 29
Cash & Cash Equivalents 9.6%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Skywest Inc. 17.5%
US Airways Group, Inc. 6.8%
Alaska Airgroup Inc. 5.8%
Kansas City Southern Inds. 5.3%
Atlantic Coast Airlines 4.5%
America West Holding Corp. 3.9%
Delta Airlines Inc. 3.8%
AMR Corp. 3.8%
Continental Airlines Class B 3.8%
TRW Inc. 2.5%
--------------------------------------------------------------------------------
TOP INDUSTRIES MARCH 31, 2000 (UNAUDITED)
Airlines 50.0%
Truckers 14.9%
Railroads 12.4%
Air Freight 8.2%
Auto Parts & Equipment 4.9%
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON TRANSPORTATION S&P SUPERCOMPOSITE
FUND 1500 INDEX
------------------- ------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $11,069 $18,764
CUMULATIVE
RETURN SINCE 10.69% 87.64%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 3.57% 24.28%
INCEPTION
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON TRANSPORTATION S&P SUPERCOMPOSITE
FUND 1500 INDEX
------------------- ------------------
<S> <C> <C>
(3.77%) 18.17%
</TABLE>
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Transportation Fund are since the inception of the Fund
through 3/31/00 and for the one year period ended 3/31/00. The returns are total
returns, and include the reinvestment of dividends and capital gains. Past
performance does not guarantee future results.
The S&P SuperComposite 1500 Index is a broad-based capitalization-weighted index
of 1500 U.S. companies and is comprised of the S&P 400, S&P 500 and the S&P 600.
It is comprised of 1500 stocks. The S&P SuperComposite 1500 Index is an
unmanaged index that includes the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
33
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
TRANSPORTATION
<TABLE>
<CAPTION>
Shares or Principal Amount Market
<S> <C>
COMMON STOCKS 90.4%
AIRLINES 50.0%
39,800 Alaska Airgroup Inc.(a) $1,196,488
52,600 America West Holding Corp.(a) 815,300
24,800 AMR Corp/DE(a) 790,500
35,900 Atlantic Coast Airlines(a) 928,913
19,200 Continental Airlines-CL B SHS(a) 784,800
14,900 Delta Air Lines Inc.(a) 793,425
92,800 Skywest Inc. 3,630,800
50,500 US Airways, Inc.(a) 1,404,530
--------------------------------------------------------------------------------
Total Airlines 10,344,756
AUTO PARTS & EQUIPMENT 4.9%
10,918 Dana Corp. 307,751
7,800 Modine Mfg. Co. 195,975
8,900 TRW Inc. 520,650
--------------------------------------------------------------------------------
Total Auto Parts & Equipment 1,024,376
TRUCKERS 14.9%
22,100 American Freightways Corp.(a) 330,119
21,900 Arnold Industries Inc. 280,594
6,400 Landstar System Inc.(a) 350,400
17,200 M S Carriers Inc.(a) 404,200
36,050 Rollins Truck Leasing 304,172
16,700 Ryder System Inc. 378,881
11,200 US Freightways Corp. 419,300
20,875 Werner Enterprises Inc. 354,875
13,700 Yellow Corp.(a) 252,593
--------------------------------------------------------------------------------
Total Truckers 3,075,134
RAILROADS 12.4%
14,200 Burlington Northern Santa Fe 314,175
13,200 GATX Corp. 501,600
12,700 Kansas City Southern Inds 1,091,406
8,500 Union Pacific Corp. 332,563
27,100 Wisconsin Central Trans.(a) 331,975
--------------------------------------------------------------------------------
Total Railroads 2,571,719
AIR FREIGHT 8.2%
19,900 Airborne Freight Corp.(a) $ 477,600
11,700 CNF Transportation, Inc.(a) 324,675
9,800 Expeditors Intl. Wash Inc. 389,550
12,800 FEDEX Corporation(a) 499,200
--------------------------------------------------------------------------------
Total Air Freight 1,691,025
Total Common Stocks
(Cost $17,112,990) 18,707,010
--------------------------------------------------------------------------------
SHORT-TERM COMMERCIAL NOTES 9.6%
--------------------------------------------------------------------------------
412,243 General Mills Demand Note
5.73% 12/3/00 412,243
--------------------------------------------------------------------------------
455,786 Sara Lee Demand Note
5.73% 4/26/00 455,786
--------------------------------------------------------------------------------
401,282 Wisconsin Electric Demand Note
5.77% 4/4/00 401,282
--------------------------------------------------------------------------------
231,903 Warner Lambert Demand Note
5.77% 11/21/00 231,903
--------------------------------------------------------------------------------
498,604 American Family Demand Note
5.77% 12/21/00 498,604
--------------------------------------------------------------------------------
Total Short-Term Commercial Notes
(Cost $1,999,818) 1,999,818
--------------------------------------------------------------------------------
Total Investments 100.0%
(Cost $19,112,808) $20,706,828
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
(a) NON-INCOME PRODUCING SECURITY
34
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
SHORT-TERM FIXED INCOME FUND
PERFORMANCE
The ICON Short-Term Fixed Income Fund (the "Fund") opened on February 7, 1997.
For the six months ended March 31, 2000, the Fund appreciated 1.68%. The
performance for the Fund's benchmark, the Merrill Lynch 1-Year Treasury Index,
was a gain of 1.95% for the same period.
The objective of the ICON Short-Term Fixed Income Fund is to attain high current
income consistent with the preservation of capital. Under normal conditions, the
Fund invests in U.S. Treasury and Agency obligations. Over the long-term, the
advisor aims to keep the duration of the Fund toward the middle of the fund's
normal operating range of .5 to 1.5 years. In the short-term, however, the
Fund's duration can and will fluctuate within this operating range.
FUND HIGHLIGHTS
The Fund has seen limited activity in the last six months.
In the past six months, worries about the risk of an overheating economy has
caused the Federal Open Market Committee ("FOMC") to raise the overnight bank
lending rate three times since last October. The FOMC decided to take a gradual
approach (quarter point increments) due, in part, to uncertainty in above trend
growth and a tighter labor market. The unemployment rate remains close to a 30
year low. The inverted yield curve has added a unique twist to an otherwise
uneventful bond market. The long bond has fallen out of institutional favor due
to more attractive rates in agency notes and high-yield corporate bonds.
CURRENT OUTLOOK
Going forward, the Advisor expects continued volatility in equities and
increased tightening by the Fed which, in turn, will provide a positive
environment for the bond market in the Fund's normal operating range.
35
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
SHORT-TERM FIXED INCOME
<TABLE>
<CAPTION>
Principal Amount Market Value
<S> <C> <C> <C>
U.S. GOVERNMENT AGENCIES 100.0%
$2,311,041 Federal Home Loan Bank
5.98% 4/3/00 $2,285,241
1,973,412 Federal Home Loan Bank
5.88% 8/15/00 1,973,412
2,000,000 Fannie Mae
5.44% 9/1/00 1,990,910
--------------------------------------------------------------------------------
Total U.S. Government Agencies 100.0%
(Cost $6,284,453) $6,249,563
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON SHORT-TERM MERRILL LYNCH 1 YEAR
FIXED INCOME FUND US TREASURY INDEX
----------------- --------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $11,563 $11,741
CUMULATIVE
RETURN SINCE 15.63% 17.41%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 4.72% 5.24%
INCEPTION
</TABLE>
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON SHORT-TERM MERRILL LYNCH 1 YEAR
FIXED INCOME FUND US TREASURY INDEX
----------------- -------------------
<S> <C> <C>
3.54% 4.31%
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Short-Term Fixed Income Fund are since the inception of
the Fund through 3/31/00 and for the one year period ended 3/31/00. The returns
are total returns, and include the reinvestment of dividends and capital gains.
Past performance does not guarantee future results.
The Merrill Lynch 1 year U.S. Treasury Index captures the performance of
obligations of the U.S. Treasury that have one year to maturity, with certain
exceptions.
36
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
ASIA REGION
PERFORMANCE
The ICON Asia Region Fund (the "Fund") opened on February 25, 1997. For the six
months ended March 31, 2000, the Fund appreciated 6.90%. The performance for the
Fund's benchmark, the Morgan Stanley Capital International (MSCI) Pacific Index
(in U.S. dollars), was a gain of 15.14% over that same period.
The MSCI Pacific Index is a market cap index of countries in the Pacific Region.
Asian markets have rebounded strongly from their lows in the fall of 1998. At
that time, market pessimism was high. The economies and currencies of developing
countries around the world had been under pressure since 1997 when Thailand
devalued the Baht. In October of 1998, Russia defaulted on government-backed
bonds. Markets around the world fell as investors were reminded of the risks
inherent in international investing. As is typically the case when investors are
fearful of a market drop, stocks were able to "climb the wall of worry" and post
excellent results over the next twelve months.
The gains in Asian stock markets over the last six months have not been without
volatility. In general, however, stocks across the region have risen with the
growing sentiment that Asian economies will recover sooner than originally
anticipated. Subject to sharp declines at times, the market has bounced back and
posted excellent six-month returns.
In the past several years, investors have started to wonder about the benefits
of diversifying their portfolios beyond the U.S. border. The healthy returns
posted in Asia in 1999 have been a timely reminder that foreign markets can
improve the return and risk characteristics of a portfolio for a U.S. investor.
COUNTRY HIGHLIGHTS
The ICON Asia Region Fund has seen limited activity in the last six months. One
new country position has been added. Based on the Advisor's quantitative system,
which includes both valuation and price momentum, stocks in Singapore were
purchased during the last six months.
The largest country holding in the Fund is Japan. Stocks held include Nippon
Telephone and Telegraph, Toyota, Sony, Matsushita and Murata Manufacturing.
Investor sentiment toward Japan has improved markedly. Japanese stocks have
posted solid gains over the last six months as Japanese consumers have started
to spend more money and as the government has begun to allow more competition
across a range of industries.
The second largest country holding is Singapore. Some of the stocks held
include DBS Group Holdings, Singapore Telecommunications, Singapore Airlines
and OCBC Bank.
CURRENT OUTLOOK
The Advisor sees many country opportunities within the Asia region. The Asian
governments have only just begun the arduous process of deregulating local
markets - in particular the financial sector. However, several countries have
made a concerted effort to allow freer markets so that the region's capital is
more effectively employed. The Advisor maintains a positive long-term outlook
for Asia.
37
<PAGE>
ASIA REGION
<TABLE>
<CAPTION>
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 71.6%
Top 10 Equity Holdings (% of Net Assets) 33.9%
Number of Stocks 70
Cash & Cash Equivalents 28.4%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
DBS Grp Hldgs (DBS Bank) 4.6%
Hutchison Whampoa Ltd. 4.3%
Nippon Telegraph & Telephone Corporation 3.9%
Singapore Telecommunications Ltd. 3.6%
Toyota Motor Corporation 3.5%
Singapore Airlines 3.5%
OCBC Bank 2.9%
Cable And Wireless Hkt. Ltd. 2.9%
United Overseas Bank 2.5%
Singapore Press Hldg. 2.2%
--------------------------------------------------------------------------------
TOP COUNTRIES MARCH 31, 2000 (UNAUDITED)
Japan 40.2%
Singapore 18.2%
Hong Kong 13.2%
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON ASIA FUND MSCI PACIFIC INDEX
-------------- -------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $11,620 $12,110
CUMULATIVE
RETURN SINCE 16.20% 21.10%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 4.97% 6.38%
INCEPTION
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON ASIA FUND MSCI PACIFIC INDEX
-------------- -------------------
<S> <C>
35.59% 39.44%
</TABLE>
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON Asia Region Fund are since the inception of the Fund
through 3/31/00 and for the one year period ended 3/31/00. The returns are total
returns, and include the reinvestment of dividends and capital gains.
International investing involves greater risk than U.S. investments due to
political, economic uncertainties and the risk of currency fluctuations. Past
performance does not guarantee future results.
The Morgan Stanley Capital International (MSCI) Pacific Index is comprised of
stocks traded in the developed markets of the Pacific Basin (Australia, Hong
Kong, Japan, Malaysia, New Zealand, and Singapore). The index tries to capture
at least 60% of investable capitalization in said markets subject to constraints
governed by industry representation, maximum liquidity, maximum float, and
minimum cross-ownership (companies with exposure in multiple countries). The
index is capitalization weighted. The MSCI Pacific Index is an unmanaged index
that does not include the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
38
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
ASIA REGION
<TABLE>
<CAPTION>
Shares Market Value
<S> <C>
COMMON STOCKS 71.6%
HONG KONG 13.2%
43,000 Bank Of East Asia, Limited $ 95,261
426,400 Cable And Wireless Hkt Ltd. 1,117,134
125,000 Cathay Pacific Airways Ltd.(a) 187,825
56,000 Cheung Kong (Holdings) Ltd. 837,861
4,000 Cheung Kong Infrastructure Holding(a) 7,346
86,000 China Light And Power Holdings 384,358
231,000 Chinese Estates Holdings Ltd.(a) 39,160
4,000 Citic Pacific Ltd. 24,196
6,500 Dickson Concepts (International) Limited(a) 7,096
3,000 Guoco Group Limited(a) 6,685
47,000 Hang Lung Development Company Limited 38,631
66,700 Hang Seng Bank Limited 582,496
160,070 Hong Kong And China Gas Company Limited 200,434
73,500 Hongkong And Shanghai Hotels, Limited(a) 37,522
73,600 Hopewell Holdings (New) 38,754
92,000 Hutchison Whampoa Ltd. 1,660,053
36,000 Hysan Development Company Limited 39,068
48,000 Miramar Hotel & Investment Co., Limited 40,069
79,000 New World Development Company Limited 110,082
76,000 Shangri-La Asia Limited(a) 85,404
264,000 Shun Tak Holdings Ltd. 39,330
23,434 Sun Hung Kai Properties Ltd. 205,403
167 Sunevision Hldgs.(a) 279
409,500 Swire Pacific - B Shs(a) 283,991
17,000 Television Broadcasts Ltd.(a) 150,644
65,000 Wharf (Holdings) Limited 124,381
--------------------------------------------------------------------------------
Total Hong Kong 6,343,463
JAPAN 40.2%
58,000 Bank Of Tokyo-Mitsubishi, Limited $ 829,581
17,000 Bridgestone Corporation 375,420
15,000 Canon Inc. 650,807
17,000 Denso Corp. 405,255
77 East Japan Railway Co. 399,395
48,000 Fuji Bank, Limited 451,616
10,000 Fuji Photo Film Co., Ltd. 440,696
20,000 Fujitsu Limited 614,244
49,000 Hitachi, Ltd. 582,372
16,000 Honda Motor Co., Ltd. 661,434
52,000 Industrial Bank Of Japan, Ltd. 475,562
6,000 Ito-Yokado Co., Ltd. 429,386
20,900 Kansai Electric Power Co., Inc. (The) 312,588
13,000 Kao Corporation 397,991
25,000 Matsushita Electric Industrial Co., Ltd. 748,306
28,000 Mitsubishi Estate Company, Limited 303,846
66,000 Mitsubishi Heavy Industries, Ltd. 207,849
3,000 Murata Manufacturing Company, Ltd. 729,781
22,000 NEC Corporation 649,929
185,000 Nippon Steel Corporation 441,915
96 Nippon Telegraph & Telephone Corporation 1,525,666
76,000 Nissan Motor Co., Ltd. 311,217
19,000 Nomura Securities Co., Limited. (The) 620,582
1,400 Rohm Company Limited 487,301
57,000 Sakura Bank Limited 434,037
22,000 Sharp Corporation 470,823
8,000 Shin-Etsu Chemical Co., Ltd. 485,936
3,300 Sony Corp. (New)(a) 469,751
5,600 Sony Corporation 791,693
29,000 Sumitomo Bank, Limited 432,604
9,000 Takeda Chemical Industries, Ltd. 640,569
49,000 Tokai Bank, Limited 296,202
30,000 Tokio Marine & Fire Insurance Co. 308,585
12,500 Tokyo Electric Power Co., Inc., The(a) 274,216
26,000 Toyota Motor Corporation 1,361,282
7,000 Yamanouchi Pharmaceutical Company, Ltd. 383,561
--------------------------------------------------------------------------------
Total Japan 19,401,998
</TABLE>
39
<PAGE>
ASIA REGION (CONTINUED)
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
Shares Market Value
<S> <C>
COMMON STOCKS - CONTINUED
SINGAPORE 18.2%
150,834 City Developments Ltd.(a) $ 683,405
136,000 DBS Grp Hldgs (Dbs Bank)(a) 1,796,901
183,600 OCBC Bank(a) 1,137,773
143,292 Singapore Airlines 1,340,352
54,587 Singapore Press Hldg. 871,222
474,674 Singapore Tech Engr.(a) 568,887
970,444 Singapore Telecommunications Ltd. 1,384,322
159,019 United Overseas Bank(a) 976,147
--------------------------------------------------------------------------------
Total Singapore 8,759,009
Total Common Stocks
Cost ($28,663,855) 34,504,470
Total Demand Deposits 28.4%
8.5% Chase Bank Interest
Bearing Demand Deposit
Cost ($13,705,095) 13,705,095
--------------------------------------------------------------------------------
Total Investments
Cost ($42,368,950) $48,209,565
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
(a) NON-INCOME PRODUCING SECURITY
40
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
ASIA REGION (CONTINUED)
SUMMARY OF INVESTMENTS BY INDUSTRY
<TABLE>
<CAPTION>
% of Investments
<S> <C>
Banks 18.48%
Telecommunications 11.67%
Financial (Diversified) 10.54%
Electrical Equipment 7.19%
Automobiles 6.76%
Computers (Hardware) 5.35%
Airlines 5.25%
Homebuilding 4.27%
Electronics-Semiconductors 3.53%
Photography/Imaging 3.16%
Health Care Diversified 2.97%
Electric Companies 2.81%
Publishing-Newspapers 2.52%
Auto Parts & Equipment 2.26%
Investment Banking/Brokerage 1.80%
Aerospace/Defense 1.65%
Chemicals-Specialty 1.41%
Steel 1.28%
Retail Stores-Dept. Stores 1.24%
Railroads 1.16%
Household Prod. (Non-Durable) 1.15%
Insurance 0.89%
Lodging-Hotels 0.68%
Manufacturing (Diversified) 0.67%
Natural Gas-Distr-Pipe Line 0.58%
Broadcasting 0.44%
Air Freight 0.14%
Shipping 0.11%
Building Materials Group 0.02%
Consumer (Jewelry/Novelties) 0.02%
-----------------------------------------------------------------------------------
Total 100.00%
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
41
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
NORTH EUROPE REGION
PERFORMANCE
The ICON North Europe Region Fund (the "Fund") opened on February 18, 1997. For
the six months ended March 31, 2000, the Fund appreciated 16.71%. The
performance for the Fund's benchmark, the Morgan Stanley Capital International
(MSCI) Europe 15 Index (in U.S. dollars), was a gain of 16.67% over that same
period.
The MSCI Europe 15 Index is a market cap index of countries in the European
Region.
European markets have shown mixed results during the past six months. Markets
throughout the world were roiled last fall. The economies and currencies of
developing countries around the world had been under pressure since 1997 when
Thailand devalued the Baht. In October of 1998, Russia defaulted on
government-backed bonds. Markets around the world fell as investors were
reminded of the risks inherent in international investing. As is typically the
case when investors are fearful of a market drop, many stock markets were able
to "climb the wall of worry" and post excellent results over the next twelve
months.
Generally, the best returns in 1999 were posted by countries outside of the Euro
zone. Scandinavian countries such as Norway and Sweden, which have a large
weighting in technology and commodity industries, have generated double-digit
returns. Conversely, countries within the Euro zone such as Germany, Italy, and
Belgium, have posted negative returns. In part, these countries have been hurt
by the European Central Bank's determination to prove that it will fight
inflation, even in the face of some sluggishness in Euro zone economies.
In the past several years, investors have started to wonder about the benefits
of diversifying their portfolios beyond the U.S. border. European markets have
not been uniformly positive. However, the healthy returns posted in 1999 in
Norway and Sweden, for example, have been a timely reminder that foreign markets
can improve the return and risk characteristics of a portfolio for a U.S.
investor.
COUNTRY HIGHLIGHTS
The ICON North Europe Region Fund has seen little activity in the last six
months. The countries held include Denmark, Norway, Sweden and United Kingdom.
The largest country holding in the Fund is Sweden. Stocks held include Ericsson,
ABB, Hennes and Skandia Forsakring. Ericsson, in particular, has generated
strong returns for investors as the company's telecommunications products have
sold well throughout the world. Other companies as well have proven themselves
to be formidable global competitors.
The second largest country holding is still Norway. Stocks held include Norsk
Hydro, Orkla and Christiania Bank. The finance industry has benefited from a
wave of consolidation throughout the Nordic countries as suitors pay a premium
to acquire Norwegian banks. Also, the natural resources and commodity-related
industries have benefited from recovering economies worldwide.
CURRENT OUTLOOK
The Advisor sees several attractive country opportunities within the North
Europe region. Companies within the Scandinavian countries continue to show
strong fundamentals. Countries within the Euro zone are beginning to show
stronger GDP growth. The Advisor believes that the healthier economies should
begin to translate into better country stock market performance in time.
42
<PAGE>
NORTH EUROPE REGION
<TABLE>
<CAPTION>
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 92.7%
Top 10 Equity Holdings (% of Net Assets) 45.3%
Number of Stocks 89
Cash & Cash Equivalents 7.3%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Telefonaktiebolaget LM Ericsson 13.0%
Norsk Hydro ASA 6.6%
Tele Danmark 5.5%
D/S Svenborg 3.1%
D/S 1912 B 3.0%
ABB Ltd. 3.0%
Skandia Forsakrings AB 2.9%
Novo Nordisk 2.8%
Hennes & Mauritz 2.8%
Astrazenca 2.6%
--------------------------------------------------------------------------------
TOP COUNTRIES MARCH 31, 2000 (UNAUDITED)
Sweden 35.8%
Norway 23.9%
Denmark 18.5%
United Kingdom 14.5%
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON NORTH EUROPE MSCI EUROPE
FUND 15 INDEX
----------------- ------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $15,576 $17,296
CUMULATIVE
RETURN SINCE 55.76% 72.96%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 15.29% 19.23%
INCEPTION
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON NORTH EUROPE MSCI EUROPE
FUND 15 INDEX
----------------- ------------------
<S> <C> <C>
28.05% 16.73%
</TABLE>
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON North Europe Region Fund are since the inception of the
Fund through 3/31/00 and for the one year period ended 3/31/00. The returns are
total returns, and include the reinvestment of dividends and capital gains.
International investing involves greater risk than U.S. investments due to
political, economic uncertainties and the risk of currency fluctuations. Past
performance does not guarantee future results.
The Morgan Stanley Capital International (MSCI) Europe 15 Index is comprised of
stocks traded in the developed markets of Europe. The index tries to capture at
least 60% of investable capitalization in said markets subject to constraints
governed by industry representation, maximum liquidity, maximum float, and
minimum cross-ownership (companies with exposure in multiple countries). The
index is capitalization weighted. The MSCI Europe 15 Index is an unmanaged index
that does not include the reinvestment of divdends and does not reflect
deductions for commission, management fees and expenses. Individuals cannot
invest in the index itself.
43
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
NORTH EUROPE REGION
<TABLE>
<CAPTION>
Shares or Principal Amount Market Value
<S> <C>
COMMON STOCKS AND RIGHTS 92.7%
DENMARK 18.5%
1,020 Bang & Olufsen Holding A/S - B Shs(a) $ 37,363
4,847 Carlsberg - A Shs 140,168
60 D S Svenborg(a) 863,698
75 D/S 1912 -B(a) 855,022
4,394 Danisco A/S(a) 140,622
4,013 Den Danske Bank A/S 420,358
4,087 FLS Industries B(a) 73,015
2,311 ISS-International Srvce System A/S - B Shs(a) 151,483
5,891 Novo Nordisk 795,007
2,568 Radiometer A/S - B Shs(a) 87,464
17,230 Tele Danmark 1,550,156
--------------------------------------------------------------------------------
Total Denmark 5,114,356
NORWAY 23.9%
11,681 Aker Asa - A Shs(a) 145,334
11,069 Bergesen - A Shs(a) 200,677
115,270 Christiania Bank Og Kreditkasse(a) 598,259
134,883 DNB Holding Asa(a) 517,846
5,463 Dyno Asa(a) 122,994
10,756 Elkem A/S(a) 182,258
13,954 Hafslund Asa - A Shs(a) 62,832
7,345 Kvaerner Asa - A Shs(a) 109,663
6,353 Leif Hoegh & Co Asa(a) 58,718
6,353 Leif Hoegh & Co Asa Rights(a) 753
21,236 Merkantildata(a) 201,308
48,947 NCL Holding(a) 185,599
49,521 Norsk Hydro ASA(a) 1,874,817
6,182 Norske Skogindustrier Asa - A Shs(a) 230,748
42,147 Orkla A(a) 644,251
20,587 Petroleum Geo - S(a) 361,038
9,829 Sas Norge Asa - B Shs(a) 94,339
14,330 Schibsted Asa(a) 354,889
56,623 Storebrand Asa(a) 345,540
15,902 Tomra Systems(a) 318,448
--------------------------------------------------------------------------------
Total Norway 6,610,311
Shares Market Value
COMMON STOCKS - CONTINUED
SWEDEN 35.8%
7,212 ABB Ltd. $ 849,747
18,312 Astrazeneca 739,686
6,000 Atlas Copco Ab - A Shs(a) 145,833
2,000 Atlas Copco B(a) 46,528
1,289 Boliden Limited(a) 2,268
2,300 Diligentia(a) 23,559
2,800 Drott Ab(a) 28,519
11,700 Electrolux Ab(a) 221,406
1,600 Esselte Ab(a) 10,741
1,600 Esselte Ab-A(a) 10,000
28,600 Hennes & Mauritz Ab-B(a) 794,444
3,200 Netcom Ab-B Shs(a) 275,926
2,100 Om Gruppen Ab 87,500
6,000 Sandvik - A Shs(a) 154,167
1,100 Sapa Ab(a) 20,434
10,700 Securitas Ab(a) 258,831
17,000 Skandia Forsakring AB(a) 804,745
19,700 Skandinaviska Enskilda Banken Ab - A Shs(a) 212,049
3,800 Skanska Ab - B Shs(a) 128,866
3,000 SKF Ab - B Shs(a) 66,667
2,800 SKF Ab-A(a) 60,602
17,500 Sparbanken Sverige Ab(a) 237,992
1,800 Ssab Svenskt Stal - A Shs(a) 21,146
1,100 Ssab Svenskt Stal Ab(a) 12,986
6,400 Svenska Cellulosa Aktiebolaget Sca - B Shs(a) 151,111
21,100 Svenska Handels(a) 260,087
22,200 Swedish Match Ab(a) 68,347
41,900 Telefonaktiebolaget Lm Ericsson(a) 3,680,799
3,300 Trelleborg Ab - B Shs(a) 23,299
7,600 Volvo Ab - B Shs(a) 204,954
4,500 Volvo Ab-A(a) 116,926
3,500 WM Data - B Shs(a) 190,393
--------------------------------------------------------------------------------
Total Sweden 9,910,558
</TABLE>
44
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
NORTH EUROPE REGION (CONTINUED)
<TABLE>
<CAPTION>
Shares Market Value
<S> <C>
COMMON STOCKS - CONTINUED
UNITED KINGDOM 14.5%
8,349 Allied Zuricha $ 91,708
3,442 Astrazeneca Plc 139,426
5,392 Barclays Plc 142,972
15,096 BG Groupa 85,078
7,467 Boots Company (The) Plc 64,002
58,190 BP Amoco 532,418
13,094 British Aerospacea 73,951
16,349 British American Tobacco 90,053
9,989 British Sky Broadcasting Group Plca 264,546
23,980 British Telecommunications Plc 449,529
8,345 Cable And Wireless Plc 156,835
13,200 Cadbury Schweppes 88,713
6,947 CGU 96,979
13,586 Diageo 102,090
13,518 Glaxo Wellcome Plc 387,122
10,164 Granada Group 109,051
5,930 Great Universal Stores Plc 36,069
7,795 J Sainsbury Plc 35,194
20,168 Lloyds/Tsb Plc 213,006
11,127 Marks And Spencer Plc 44,469
8,343 Prudential Corporation Plc 125,984
6,737 Reuters Group 136,718
5,806 Riotinto Corporation Plca 97,492
20,995 Smithkline Beecham Plc 277,343
35,428 Tesco Plca 117,990
11,167 Unilever 71,574
--------------------------------------------------------------------------------
Total United Kingdom 4,030,312
Total Common Stocks and Rights
Cost ($20,391,839) 25,665,537
--------------------------------------------------------------------------------
Total Demand Deposits 7.3%
8.0% Chase Bank Interest Bearing
Demand Deposit
Cost ($2,039,735) 2,039,735
Total Investments
Cost ($22,431,574) $27,705,272
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
(a) NON-INCOME PRODUCING SECURITY
45
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
NORTH EUROPE REGION (CONTINUED)
SUMMARY OF INVESTMENTS BY INDUSTRY
<TABLE>
<CAPTION>
% of Investments
<S> <C>
Communications Equipment 14.34%
Telecommunications 9.48%
Banks 9.21%
Health Care Diversified 9.11%
Shipping 8.43%
Chemicals-Specialty 7.65%
Insurance 5.35%
Financial (Diversified) 4.60%
Foods 3.68%
Retail Specialty-Apparel 3.10%
Machinery-Diversified 2.77%
Oil (Intl. Integrated) 2.07%
Oil & Gas (Drilling & Equip) 1.97%
Paper & Forest Products 1.57%
Services (Commercial/Consum) 1.54%
Computers Software/Services 1.53%
Publishing-Newspapers 1.38%
Trucks & Parts 1.25%
Broadcasting 1.03%
Beverages-Alcoholic 0.94%
Household Furnishings & App 0.86%
Steel 0.84%
Tobacco 0.62%
Metal Fabricators 0.60%
Retail Stores-Food Chains 0.60%
Services (Facils/Environmentl) 0.59%
Engineering & Construction 0.50%
Chemicals-Diversified 0.48%
Air Freight 0.43%
Entertainment 0.42%
Metals Mining 0.39%
Airlines 0.37%
Health Care (Med Prods/Sups) 0.34%
Natural Gas-Distr-Pipe Line 0.33%
Aerospace/Defense 0.29%
Retail Stores-Drug Store 0.25%
Electric Companies 0.24%
Retail Stores-Dept. Stores 0.17%
Electrical Equipment 0.15%
Retail (Home Shopping) 0.14%
Homebuilding 0.12%
Manufacturing (Diversified) 0.10%
Other 0.09%
Aluminum 0.08%
---------------------------------------------------------------
Total 100.00%
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
46
<PAGE>
[GRAPHIC]
----------
ICON FUNDS MANAGEMENT DISCUSSION & ANALYSIS
----------
SOUTH EUROPE REGION
PERFORMANCE
The ICON South Europe Region Fund (the "Fund") opened on February 20, 1997. For
the six months ended March 31, 2000, the Fund appreciated 3.06%. The performance
for the Fund's benchmark, the Morgan Stanley Capital International (MSCI) Europe
15 Index (in U.S. dollars), was a gain of 16.67% over that same period.
The MSCI Europe 15 Index is a market cap index of countries in the European
Region.
European markets have shown mixed results during the past six months. Markets
throughout the world were roiled last fall. The economies and currencies of
developing countries around the world had been under pressure since 1997 when
Thailand devalued the Baht. In October of 1998, Russia defaulted on
government-backed bonds. Markets around the world fell as investors were
reminded of the risks inherent in international investing. As is typically the
case when investors are fearful of a market drop, many stock markets were able
to "climb the wall of worry" and post excellent results over the next twelve
months.
Generally, the best returns in 1999 have been posted by countries outside of the
Euro zone. Scandinavian countries such as Norway and Sweden, which have a large
weighting in technology and commodity industries, have generated double-digit
returns. Conversely, countries within the Euro zone such as Germany, Italy, and
Belgium, have posted negative returns. In part, these countries have been hurt
by the European Central Bank's determination to prove that it will fight
inflation, even in the face of some sluggishness in Euro zone economies.
In the past several years, investors have started to wonder about the benefits
of diversifying their portfolios beyond the U.S. border. European markets have
not been uniformly positive. However, the healthy returns posted in 1999 in
Norway and Sweden, for example, have been a timely reminder that foreign markets
can improve the return and risk characteristics of a portfolio for a U.S.
investor.
COUNTRY HIGHLIGHTS
The ICON South Region Fund has seen few changes in the last six months. No new
country positions have been added.
The two country holdings in the Fund are Italy and Switzerland. Italy's holdings
are slightly higher weighted within the Fund. Italian stocks held include TIM
SPA, Telecom Italia SPA, ENI Group, Assicurazioni Generali and Mediaset. After
performing extremely well in 1998, Italian stocks have continued to perform well
in 1999 and 2000.
Swiss stocks held include Roche, Nestle, Novartis, UBS, Credit Suisse and Zurich
Allied. The Swiss market is heavily concentrated in Pharmaceuticals, Food, and
Banking. All three of these industries have experienced weakness in 1999, both
in Switzerland and globally.
CURRENT OUTLOOK
The Advisor sees several country opportunities within the South Europe region.
Companies within these countries are restructuring and cutting costs as they
seek to compete both within the Euro zone and globally. The Advisor believes
that the stronger companies that result should begin to translate into better
country stock market performance in time.
47
<PAGE>
SOUTH EUROPE REGION
<TABLE>
<CAPTION>
PORTFOLIO PROFILE MARCH 31, 2000 (UNAUDITED)
<S> <C>
Equities 84.4%
Top 10 Equity Holdings (% of Net Assets) 54.0%
Number of Stocks 36
Cash & Cash Equivalents 15.6%
--------------------------------------------------------------------------------
TOP 10 EQUITY HOLDINGS MARCH 31, 2000 (UNAUDITED)
Tim Spa 8.9%
Roche Holding Ag 7.6%
Nestle Sa 6.4%
Novartis 6.4%
Telecom Italia Spa 6.3%
UBS AG (United Bank) 5.3%
Credit Suisse GroupEnte Nazionale Idrocarburi 4.9%
Ente Nationale Idrocarburi 4.8%
Assicurazioni Generali Spa 3.4%
--------------------------------------------------------------------------------
TOP COUNTRIES MARCH 31, 2000 (UNAUDITED)
Italy 44.0%
Switzerland 40.4%
</TABLE>
--------------------------------------------------------------------------------
PERFORMANCE OVERVIEW*
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
ICON SOUTH EUROPE
FUND MSCI EUROPE 15 INDEX
----------------- --------------------
<S> <C> <C>
GROWTH OF $10,000
SINCE INCEPTION $13,849 $17,294
CUMULATIVE
RETURN SINCE 38.49% 72.94%
INCEPTION
AVERAGE ANNUAL
RETURN SINCE 11.04% 19.26%
INCEPTION
</TABLE>
LIFE OF THE FUND VALUE OF $10,000 INVESTMENT SINCE FUND INCEPTION VERSUS FUND
BENCHMARK.
[GRAPH]
ALL INFORMATION IS FOR THE PERIOD ENDED 3/31/00
ONE YEAR PERIOD ENDED 3/31/00
[CHART]
<TABLE>
<CAPTION>
ICON SOUTH EUROPE
FUND MSCI EUROPE 15 INDEX
----------------- --------------------
<S> <C> <C>
(2.80%) 16.73%
</TABLE>
* Investment return and principal value represent past performance and are not a
guarantee of future results. Shares may be worth more or less at redemption than
at original purchase.
The returns for the ICON South Europe Fund are since the inception of the Fund
through 3/31/00 and for the one year period ended 3/31/00. The returns are total
returns, and include the reinvestment of dividends and capital gains.
International investing involves greater risk than U.S. investments due to
political, economic uncertainties and the risk of currency fluctuations. Past
performance does not guarantee future results.
The Morgan Stanley Capital International (MSCI) Europe 15 Index is comprised of
stocks traded in the developed markets of Europe. The index tries to capture at
least 60% of investable capitalization in said markets subject to constraints
governed by industry representation, maximum liquidity, maximum float, and
minimum cross-ownership (companies with exposure in multiple countries). The
index is capitalization weighted. The MSCI Europe 15 Index is an unmanaged index
that does not assume the reinvestment of dividends and does not reflect
deductions for commission, management fees and expenses.
Individuals cannot invest in the index itself.
48
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
SOUTH EUROPE REGION (CONTINUED)
<TABLE>
<CAPTION>
Shares or Principal Amount Market Value
<S> <C>
COMMON STOCKS 84.4%
ITALY 44.0%
7,686 Assicurazioni Generali Spa(a) $ 213,149
12,876 Banca Commerciale Italiana Spa(a) 58,774
17,727 Banca Intesa Spa(a) 61,239
4,004 Banca Popolare Di Milano Scrl(a) 27,741
20,980 Benetton Group (New) 43,165
10,736 Beni Stabili Spa(a) 4,623
5,027 Edison Spa(a) 52,435
59,789 ENI Group Ente Nazionale Idrocarburi(a) 299,231
2,948 Fiat Spa (New)(a) 77,720
32,169 Istituto Nazionale Delle Assicurazioni S 66,185
5,978 Italgas Societa Italiana Per Il Gas Pa(a) 27,402
8,707 Mediaset Spa(a) 172,974
4,583 Mediobanca-Banca Di Credito Finanziario 37,190
24,191 Parmalat Finanziaria Spa(a) 26,923
14,664 Pirelli Spa(a) 38,098
2,844 Rinascente La Spa(a) 13,608
4,000 Riunione Adriatica Di Sicurta Spa(a) 37,053
10,736 San Paolo-Imi Spa(a) 147,016
26,615 Telecom Italia Spa(a) 397,314
45,667 Tim Spa(a) 560,240
12,815 Telecom Italia Mobile Di Ris(a) 61,315
36,539 Unicredito Italiano(a) 145,456
48,369 Unione Immobiliare(a) 24,068
--------------------------------------------------------------------------------
Total Italy 2,592,919
SWITZERLAND 40.4%
118 Adecco Sa (New) $ 81,614
40 Alusuisse-Lonza Group Ag 25,260
1,545 Credit Suisse Group 307,569
40 Holderbank Financiere Glarus Ag 47,633
225 Nestle Sa 403,260
294 Novartis 402,091
44 Roche Holding Ag 477,921
155 Sairgroup 29,132
23 Sulzer Ag-Reg 15,493
23 Swiss Re N 39,853
291 The Swatch Group Ag-Reg 68,694
1,265 Ubs Ag (United Bk) 332,474
295 Zurich Allied Ag 148,680
--------------------------------------------------------------------------------
Total Switzerland 2,379,674
Total Common Stocks
Cost ($5,153,532) 4,972,593
--------------------------------------------------------------------------------
Total Demand Deposits 15.6%
4.65% Chase Bank Interest
Bearing Demand Deposit
Cost ($915,549) 915,549
--------------------------------------------------------------------------------
Total Investments
Cost ($6,069,081) $5,888,142
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
(a) NON-INCOME PRODUCING SECURITY
49
<PAGE>
SCHEDULE OF INVESTMENTS
MARCH 31, 2000
(UNAUDITED)
----------
ICON FUNDS 2000 SEMI-ANNUAL REPORT
----------
SOUTH EUROPE REGION (CONTINUED)
SUMMARY OF INVESTMENTS BY INDUSTRY
<TABLE>
<CAPTION>
% of Investments
<S> <C>
Bank 22.47%
Telecommunications 20.49%
Distributor (Food & Health) 9.61%
Foods 8.65%
Health Care Diversified 8.09%
Insurance 6.36%
Oil 6.02%
Broadcasting 3.48%
Financial (Diversified) 2.99%
Services (Employment) 1.64%
Auto 1.56%
Consumer (Jewelry/Novelties) 1.38%
Electric 1.05%
Construction 0.96%
Textiles 0.87%
Other 0.80%
Metals Mining 0.77%
Airlines 0.59%
Natural Gas 0.55%
Air Freight 0.51%
Homebuilding 0.48%
Engineering & Construction 0.31%
Retail Stores-Food Chain 0.27%
Real Estate Investment/Management 0.10%
-----------------------------------------------------------------------------------
Total 100.00%
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
50
<PAGE>
-----------
ICON FUNDS
-----------
STATEMENTS OF ASSETS & LIABILITIES .......................................> 52
STATEMENTS OF OPERATIONS .................................................> 54
STATEMENTS OF CHANGES IN NET ASSETS ......................................> 56
FINANCIAL HIGHLIGHTS .....................................................> 60
NOTES TO FINANCIAL STATEMENTS ............................................> 66
51
<PAGE>
----------
ICON FUNDS STATEMENTS OF ASSETS AND LIABILITIES
----------
<TABLE>
<CAPTION>
MARCH 31, 2000 (UNAUDITED)
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 $ 26,214,443 $ 39,370,855 $ 19,345,902 $ 108,283,577 $ 40,281,988
---------------------------------------------------------------------------------------
Investments at value 26,620,174 43,799,062 24,918,760 110,805,562 39,764,188
Cash 3,541 -- -- -- --
Receivables:
Investments sold -- 2,314,587 -- -- --
Fund shares sold -- 6,400,924 79,230 4,016,237 250,000
Interest 14,280 10,260 4,938 2,825 8,041
Dividends 8,281 9,490 16,594 5,059 6,545
Deferred organizational expenses 8,972 8,972 -- 8,972 8,115
---------------------------------------------------------------------------------------
Total Assets 26,655,248 52,543,295 25,019,522 114,838,655 40,036,889
LIABILITIES:
Payables:
Due to Custodian bank -- -- -- -- 53
Investments purchased 2,437,135 10,377,997 325,391 48,770,153 --
Fund shares redeemed 7,433 10,067 5,577 17,797 10,321
Advisory fee 19,578 27,927 18,065 7,964 45,710
Fund accounting, custodial and
transfer agent fees 5,546 8,003 4,991 1,850 13,075
Administration fee 979 1,396 903 397 2,285
Distributions due to shareholders -- -- -- -- --
Due to redeemed shareholders -- -- -- -- --
Accrued Expenses 21,047 35,385 17,004 10,923 26,059
---------------------------------------------------------------------------------------
Total Liabilities 2,491,718 10,460,775 371,931 48,809,084 97,503
Net Assets $ 24,163,530 $ 42,082,520 $ 24,647,591 $ 66,029,571 $ 39,939,386
Shares Outstanding (unlimited
shares authorized, no par value) 3,418,545 4,100,318 2,250,065 6,789,050 3,951,821
Net Asset Value (Offering price
and redemption price per share) $ 7.06 $ 10.26 $ 10.95 $ 9.72 $ 10.11
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
52
<PAGE>
<CAPTION>
ICON LEISURE ICON TECHNOLOGY ICON TELECOMM & ICON TRANSPOR- ICON SHORT-TERM
FUND FUND UTILITIES FUND TATION FUND FIXED INCOME FUND
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments at cost $ 6,510,588 $ 41,291,802 $ 6,981,530 $ 19,112,808 $ 6,284,453
---------------------------------------------------------------------------------------
Investments at value 6,214,771 48,655,001 6,677,809 20,706,828 6,249,563
Cash -- -- -- -- 2,098
Receivables:
Investments sold 10,449,373 277,409 -- -- --
Fund shares sold -- 270,300 -- 100,000 20,000
Interest 7,997 10,330 5,472 10,225 24,014
Dividends 56,777 9,951 8,100 9,701 --
Deferred organizational expenses 8,972 8,115 8,972 8,972 8,115
---------------------------------------------------------------------------------------
Total Assets 16,737,890 49,231,106 6,700,353 20,835,726 6,303,790
LIABILITIES:
Payables:
Due to Custodian bank 10,055,943 891,172 -- -- --
Investments purchased -- 533,272 -- -- --
Fund shares redeemed 3,095 16,938 3,045 5,495 1,066
Advisory fee 21,805 64,896 5,671 16,410 2,869
Fund accounting, custodial and
transfer agent fees 6,225 18,481 1,627 4,667 1,276
Administration fee 1,090 3,245 284 820 221
Distributions due to shareholders -- -- -- -- 16,487
Due to redeemed shareholders -- -- -- -- 57,539
Accrued Expenses 23,247 39,893 12,209 18,186 10,636
---------------------------------------------------------------------------------------
Total Liabilities 10,111,405 1,567,897 22,836 45,578 90,094
Net Assets $ 6,626,485 $ 47,663,209 $ 6,677,517 $ 20,790,149 $ 6,213,696
Shares Outstanding (unlimited
shares authorized, no par value) 809,662 1,990,901 971,088 2,238,819 683,759
Net Asset Value (Offering price
and redemption price per share) $ 8.18 $ 23.94 $ 6.88 $ 9.29 $ 9.09
<CAPTION>
ICON ASIA ICON N. EUROPE ICON S. EUROPE
REGION FUND REGION FUND REGION FUND
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
Investments at cost $ 42,368,950 $ 22,431,574 $ 6,069,081
---------------------------------------------------
Investments at value 48,209,565 27,705,272 5,888,142
Cash 2,504 30,120 119,555
Receivables:
Investments sold -- -- 52,611
Fund shares sold 500,000 480,000 180,000
Interest 11,552 8,619 3,517
Dividends 39,117 70,540 36,893
Deferred organizational expenses 8,115 8,115 8,115
---------------------------------------------------
Total Assets 48,770,859 28,302,666 6,288,833
Liabilities:
Payables:
Due to Custodian bank 85,889 -- --
Investments purchased 9,751,548 -- --
Fund shares redeemed 5,558 4,678 1,832
Advisory fee 24,584 25,414 5,192
Fund accounting, custodial and
transfer agent fees 17,909 20,275 3,137
Administration fee 1,229 1,271 260
Distributions due to shareholders -- -- --
Due to redeemed shareholders -- -- --
Accrued Expenses 32,368 26,455 13,675
---------------------------------------------------
Total Liabilities 9,919,085 78,093 24,096
Net Assets $ 38,851,774 $ 28,224,573 $ 6,264,737
Shares Outstanding (unlimited
shares authorized, no par value) 3,343,184 2,264,396 600,652
Net Asset Value (Offering price
and redemption price per share) $ 11.62 $ 12.46 $ 10.43
</TABLE>
AN EXPLANATION OF THE STATEMENT OF ASSETS AND LIABILITIES
This statement lists the assets and liabilities of the Funds as of the last day
of the fiscal period.
The assets may consist of the market value of the securities held in the Funds
on that day, cash, any receivables (dividends declared not paid, interest due to
the Funds but not paid, securities sold but not settled, and Funds' shares
purchased by investors but not settled). The liabilities may consist of payables
for expenses incurred but not yet paid, Funds' shares redeemed but not settled,
securities for the portfolio bought but not settled.
The last line is the Net Asset Value (NAV) Per Share as of the last day of the
fiscal period. The NAV per share is calculated by dividing the Funds' net assets
(assets, at that day's market value, minus liabilities) by the number of Funds'
shares outstanding.
53
<PAGE>
----------
ICON FUNDS STATEMENTS OF OPERATIONS
----------
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED MARCH 31, 2000 (UNAUDITED)
---------------------------------------------------------------------------------------------------------------------------------
ICON BASIC ICON CONSUMER ICON ENERGY ICON FINANCIAL ICON HEALTHCARE
MATERIALS FUND CYCLICALS FUND FUND SERVICES FUND FUND
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 55,496 $ 101,180 $ 27,557 $ 52,492 $ 54,978
Dividends 171,346 186,376 83,460 47,802 34,195
Foreign taxes withheld (118) -- -- -- --
-------------------------------------------------------------------------------------
Total investment income 226,724 287,556 111,017 100,294 89,173
Expenses:
Advisory fees 126,592 251,678 93,232 33,087 177,826
Fund accounting, custodial and
transfer agent fees 18,768 36,813 14,008 5,080 28,118
Administration fees 6,330 12,584 4,662 1,654 8,891
Audit fees 4,970 9,872 3,484 1,241 7,022
Registration fees 5,824 6,618 5,867 5,417 5,519
Legal fees 1,779 3,438 1,310 440 2,680
Insurance expense 805 1,595 561 200 1,134
Amortization of deferred
organizational expenses 1,880 1,880 -- 1,880 1,880
Trustees fees & expenses 920 1,822 641 229 1,297
Shareholder reports 2,438 4,860 1,710 611 3,457
Other expenses 9,576 9,542 8,455 278 17,689
-------------------------------------------------------------------------------------
Total Expenses 179,882 340,702 133,930 50,117 255,513
-------------------------------------------------------------------------------------
Net investment income/(loss) 46,842 (53,146) (22,913) 50,177 (166,340)
-------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments:
Net realized gain/(loss) from
investment transactions (1,030,755) (2,656,340) (968,521) (1,288,018) 5,279,927
Net realized gain/(loss) from foreign
currency transactions -- -- -- -- --
Change in net unrealized appreciation or
depreciation on securities and foreign
currency translations 131,605 4,988,279 6,995,493 3,280,858 2,191,578
-------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments: (899,150) 2,331,939 6,026,972 1,992,840 7,471,505
-------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations $ (852,308) $ 2,278,793 $ 6,004,059 $ 2,043,017 $ 7,305,165
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
54
<PAGE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
ICON LEISURE ICON TECHNOLOGY ICON TELECOMM & ICON TRANSPOR- ICON SHORT-TERM
FUND FUND UTILITIES FUND TATION FUND FIXED INCOME FUND
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 37,605 $ 146,801 $ 34,434 $ 82,943 $ 147,528
Dividends 208,453 125,814 104,049 167,304 --
Foreign taxes withheld -- (345) -- -- --
-------------------------------------------------------------------------------------
Total investment income 246,058 272,270 138,483 250,247 147,528
Expenses:
Advisory fees 141,315 323,598 35,905 101,692 17,436
Fund accounting, custodial and
transfer agent fees 20,813 50,448 5,401 15,208 5,398
Administration fees 7,066 16,180 1,795 5,085 1,341
Audit fees 5,590 12,733 1,429 3,980 1,042
Registration fees 5,589 6,455 5,518 5,564 5,588
Legal fees 1,997 4,601 514 1,420 456
Insurance expense 903 2,057 231 643 169
Amortization of deferred
organizational expenses 1,880 1,880 1,880 1,880 1,880
Trustees fees & expenses 1,036 2,351 264 735 192
Shareholder reports 2,752 6,298 703 1,959 513
Other expenses 23,074 13,514 (1,451) 985 8,258
-------------------------------------------------------------------------------------
Total Expenses 212,015 440,115 52,189 139,151 42,273
-------------------------------------------------------------------------------------
Net investment income/(loss) 34,043 (167,845) 86,294 111,096 105,255
-------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments:
Net realized gain/(loss) from
investment transactions (3,420,489) 46,647,677 653,657 (3,319,116) 1,523
Net realized gain/(loss) from foreign
currency transactions -- -- -- -- --
Change in net unrealized appreciation or
depreciation on securities and foreign
currency translations 546,275 (10,963,562) (920,681) 2,746,870 (20,395)
-------------------------------------------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments: (2,874,214) 35,684,115 (267,024) (572,246) (18,872)
-------------------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations $ (2,840,171) $ 35,516,270 $ (180,730) $ (461,150) $ 86,383
<CAPTION>
-------------------------------------------------------------------------------------------------
ICON ASIA ICON N. EUROPE ICON S. EUROPE
REGION FUND REGION FUND REGION FUND
-------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest $ 53,589 $ 45,440 $ 12,884
Dividends 156,879 93,122 4,577
Foreign taxes withheld (23,975) (11,157) (687)
----------------------------------------------------
Total investment income 186,493 127,405 16,774
Expenses:
Advisory fees 174,817 136,076 28,052
Fund accounting, custodial and
transfer agent fees 47,074 34,027 7,055
Administration fees 8,840 6,804 1,404
Audit fees 7,443 5,311 1,069
Registration fees 5,442 5,400 5,300
Legal fees 2,398 2,303 393
Insurance expense 1,201 850 172
Amortization of deferred
organizational expenses 1,880 1,880 1,880
Trustees fees & expenses 1,274 976 202
Shareholder reports 3,665 2,615 527
Other expenses 19,276 16,019 1,305
----------------------------------------------------
Total Expenses 273,310 212,261 47,359
----------------------------------------------------
Net investment income/(loss) (86,817) (84,856) (30,585)
----------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments:
Net realized gain/(loss) from
investment transactions 5,516,541 991,193 (12,465)
Net realized gain/(loss) from foreign
currency transactions (248,233) (35,813) (4,836)
Change in net unrealized appreciation or
depreciation on securities and foreign
currency translations (881,272) 3,690,665 206,595
----------------------------------------------------
Net Realized and Unrealized Gain/(Loss)
on investments: 4,387,036 4,646,045 189,294
----------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations $ 4,300,219 $ 4,561,189 $ 158,709
</TABLE>
AN EXPLANATION OF THE STATEMENTS OF OPERATIONS
This financial statement provides details of the Funds' income, expenses, gains
and losses on securities and currency transactions (if any) and the change in
appreciation or depreciation of portfolio holdings.
The first section, "Investment Income," reports the dividends earned from
stocks, interest earned from interest-bearing securities held by the Funds, and
foreign taxes withheld (if any).
The next section reports the expenses incurred by the Funds, including advisory
fees, transfer agent fees, custodial fees, fund accounting fees, legal fees,
audit fees, administration fees, trustee fees and expenses, printing and postage
for mailing statements, financial reports, and prospectuses to shareholders.
The last section lists the increase and decrease in the market value of
securities held in the Funds' portfolios. A realized gain (or loss) occurs when
a Fund sells a security held in the portfolio. Unrealized gains (or losses)
represent the change in the market value of the securities held in the
portfolio, either appreciation or depreciation.
The net result of all these sections is the net increase (decrease) in net
assets resulting from operations.
55
<PAGE>
-----------
ICON FUNDS STATEMENTS OF CHANGES IN NET ASSETS
-----------
FOR THE PERIODS ENDED AS INDICATED
<TABLE>
<CAPTION>
ICON BASIC ICON CONSUMER
MATERIALS FUND CYCLICALS FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, 1999 MARCH 31, 2000 SEPT. 30, 1999
(UNAUDITED) (UNAUDITED)
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 46,842 $ 28,096 $ (53,146) $ (269,360)
Net realized gain/(loss) from
investment transactions (1,030,755) (1,955,997) (2,656,340) (6,301,452)
Net realized gain/(loss) from
foreign currency transactions -- -- -- --
Change in unrealized net appreciation or
depreciation on securities and foreign
currency translations 131,605 3,853,421 4,988,279 19,196,751
-------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations (852,308) 1,925,520 2,278,793 12,625,939
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (53,645) -- --
Distributions in excess of net investment income -- -- -- --
Net capital gains -- -- -- --
Distributions in excess of net capital gains -- -- -- (1,483,603)
-------------------------------------------------------------------------
Net decrease from dividends and distributions -- (53,645) -- (1,483,603)
FUND SHARE TRANSACTIONS:
Shares sold 4,964,284 30,972,639 27,231,045 30,654,568
Reinvested dividends and distributions -- 53,589 -- 1,482,251
Shares repurchased (6,321,745) (23,842,747) (41,778,534) (37,930,762)
-------------------------------------------------------------------------
Net increase (decrease) from fund share transactions (1,357,461) 7,183,481 (14,547,489) (5,793,943)
-------------------------------------------------------------------------
Total increase (decrease) in net assets (2,209,769) 9,055,356 (12,268,696) 5,348,393
NET ASSETS:
Beginning of Period 26,373,299 17,317,943 54,351,216 49,002,823
-------------------------------------------------------------------------
End of Period $ 24,163,530 $ 26,373,299 $ 42,082,520 $ 54,351,216
-------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in capital $ 36,706,198 $ 38,063,659 $ 46,857,770 $ 61,405,259
Accumulated undistributed net
investment income/(loss) 46,842 -- (53,146) --
Accumulated undistributed net realized
gain/(loss) from investments (12,995,241) (11,964,486) (9,150,311) (6,493,971)
Accumulated net realized gain/(loss)
from foreign currency transactions -- -- -- --
Unrealized appreciation/depreciation on
securities and foreign currency translations 405,731 274,126 4,428,207 (560,072)
-------------------------------------------------------------------------
NET ASSETS $ 24,163,530 $ 26,373,299 $ 42,082,520 $ 54,351,216
-------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES:
Shares sold 667,254 4,297,943 2,775,022 3,146,962
Reinvested dividends and distributions -- 8,347 -- 149,270
Shares repurchased (854,899) (3,330,617) (4,292,834) (3,907,678)
-------------------------------------------------------------------------
Net increase/(decrease) (187,645) 975,673 (1,517,812) (611,446)
Shares outstanding beginning of period 3,606,190 2,630,517 5,618,130 6,229,576
-------------------------------------------------------------------------
Shares outstanding end of period 3,418,545 3,606,190 4,100,318 5,618,130
PURCHASES AND SALES OF INVESTMENT SECURITIES:
(excluding Short-Term Securities)
Purchases of securities $ 8,489,666 $ 26,688,867 $ 20,678,064 $ 15,815,132
Proceeds from sales of securities 11,915,991 19,410,414 34,073,813 24,081,434
Purchases of long-term
U.S. government securities -- -- -- --
Proceeds from sales of long-term
U.S. government securities -- -- -- --
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
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 increases in the number of Fund shares being purchased
or sold.
The first section is a summary of the Statement of Operations discussed on a
previous page.
The next section summarizes the change due to capital gain and
dividend distributions to Fund shareholders. If Fund shareholders receive their
dividends and distributions in cash, money is taken out of the Fund to make the
payment. If Fund shareholders reinvest their dividends and distributions, the
Fund's net assets will not be affected.
The net increase (decrease) in net assets from Fund share transactions includes
the increase due to the purchase of Fund shares, the decrease due to Fund shares
redeemed from shareholders, and the reinvestment of Fund dividend and
distributions.
The section "Net Assets consist of " itemizes the components of the Fund's net
assets. Since funds usually distribute substantially all earnings so as to not
incur a fund level income tax, a significant portion of the net assets is
shareholder capital.
56
<PAGE>
<TABLE>
<CAPTION>
ICON ENERGY ICON FINANCIAL
FUND SERVICES FUND
SIX MONTHS ENDED PERIOD ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, 1999 MARCH 31, 2000 SEPT. 30, 1999
(UNAUDITED) (UNAUDITED)
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ (22,913) $ (36,056) $ 50,177 $ 9,068
Net realized gain/(loss) from
investment transactions (968,521) (3,465,711) (1,288,018) 70,021
Net realized gain/(loss) from
foreign currency transactions -- -- -- --
Change in unrealized net appreciation or
depreciation on securities and foreign
currency translations 6,995,493 6,391,763 3,280,858 2,025,118
--------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 6,004,059 2,889,996 2,043,017 2,104,207
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (83,614) -- (82,357)
Distributions in excess of net investment income -- (36,056) -- (3,931)
Net capital gains -- -- (73,563) (2,119,756)
Distributions in excess of net capital gains -- -- -- --
--------------------------------------------------------------------------
Net decrease from dividends and distributions -- (119,670) (73,563) (2,206,044)
FUND SHARE TRANSACTIONS:
Shares sold 24,676,216 25,058,781 64,994,720 12,916,650
Reinvested dividends and distributions -- 119,107 73,421 2,203,753
Shares repurchased (25,262,369) (21,053,087) (6,491,244) (26,745,880)
--------------------------------------------------------------------------
Net increase (decrease) from fund share transactions (586,153) 4,124,801 58,576,897 (11,625,477)
--------------------------------------------------------------------------
Total increase (decrease) in net assets 5,417,906 6,895,127 60,546,351 (11,727,314)
NET ASSETS:
Beginning of Period 19,229,685 12,334,558 5,483,220 17,210,534
--------------------------------------------------------------------------
End of Period $ 24,647,591 $ 19,229,685 $ 66,029,571 $ 5,483,220
--------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in capital $ 24,911,285 $ 25,497,438 $ 64,758,554 $ 6,181,657
Accumulated undistributed net
investment income/(loss) (22,913) -- 50,177 --
Accumulated undistributed net realized
gain/(loss) from investments (5,813,639) (4,845,118) (1,301,145) 60,436
Accumulated net realized gain/(loss)
from foreign currency transactions -- -- -- --
Unrealized appreciation/depreciation on
securities and foreign currency translations 5,572,858 (1,422,635) 2,521,985 (758,873)
--------------------------------------------------------------------------
NET ASSETS $ 24,647,591 $ 19,229,685 $ 66,029,571 $ 5,483,220
--------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES:
Shares sold 2,878,134 3,285,662 6,876,096 1,295,031
Reinvested dividends and distributions -- 21,854 8,068 223,731
Shares repurchased (3,037,783) (2,841,236) (705,240) (2,746,429)
--------------------------------------------------------------------------
Net increase/(decrease) (159,649) 466,280 6,178,924 (1,227,667)
--------------------------------------------------------------------------
Shares outstanding beginning of period 2,409,714 1,943,434 610,126 1,837,793
--------------------------------------------------------------------------
Shares outstanding end of period 2,250,065 2,409,714 6,789,050 610,126
PURCHASES AND SALES OF INVESTMENT SECURITIES:
(excluding Short-Term Securities)
Purchases of securities $ 325,391 7,845,028 $ 52,427,015 $ 5,497,159
Proceeds from sales of securities 1,999,442 4,585,700 2,395,493 19,549,111
Purchases of long-term
U.S. government securities -- -- -- --
Proceeds from sales of long-term
U.S. government securities -- -- -- --
<CAPTION>
ICON HEALTHCARE ICON LEISURE
FUND FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, 1999 MARCH 31, 2000 SEPT. 30, 1999
(UNAUDITED) (UNAUDITED)
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ (166,340) $ (243,651) $ 34,043 $ (48,822)
Net realized gain/(loss) from
investment transactions 5,279,927 3,878,466 (3,420,489) 12,124,958
Net realized gain/(loss) from
foreign currency transactions -- -- -- --
Change in unrealized net appreciation or
depreciation on securities and foreign
currency translations 2,191,578 (4,881,850) 546,275 (5,128,788)
-------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 7,305,165 (1,247,035) (2,840,171) 6,947,348
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- -- (742,644)
Distributions in excess of net investment income -- -- -- (98,822)
Net capital gains (944,909) (6,938,008) (7,685,699) (3,723,215)
Distributions in excess of net capital gains -- -- -- --
-------------------------------------------------------------------------
Net decrease from dividends and distributions (944,909) (6,938,008) (7,685,699) (4,564,681)
FUND SHARE TRANSACTIONS:
Shares sold 33,840,210 12,506,015 2,635,448 13,536,073
Reinvested dividends and distributions 944,048 6,904,056 7,680,059 4,547,293
Shares repurchased (25,754,737) (17,828,768) (24,722,634) (43,332,972)
-------------------------------------------------------------------------
Net increase (decrease) from fund share transactions 9,029,521 1,581,303 (14,407,127) (25,249,606)
-------------------------------------------------------------------------
Total increase (decrease) in net assets 15,389,777 (6,603,740) (24,932,997) (22,866,939)
NET ASSETS:
Beginning of Period 24,549,609 31,153,349 31,559,482 54,426,421
-------------------------------------------------------------------------
End of Period $ 39,939,386 $ 24,549,609 $ 6,626,485 $ 31,559,482
-------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in capital $ 35,432,038 $ 26,402,517 $ 10,643,605 $ 25,050,732
Accumulated undistributed net
investment income/(loss) (166,340) -- 34,043 --
Accumulated undistributed net realized
gain/(loss) from investments 5,191,488 856,470 (3,755,346) 7,350,842
Accumulated net realized gain/(loss)
from foreign currency transactions -- -- -- --
Unrealized appreciation/depreciation on
securities and foreign currency translations (517,800) (2,709,378) (295,817) (842,092)
-------------------------------------------------------------------------
NET ASSETS $ 39,939,386 $ 24,549,609 $ 6,626,485 $ 31,559,482
-------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES:
Shares sold 3,381,695 1,373,903 314,378 1,031,314
Reinvested dividends and distributions 117,419 767,971 932,046 385,038
Shares repurchased (2,623,947) (1,800,628) (3,055,929) (3,413,980)
-------------------------------------------------------------------------
Net increase/(decrease) 875,167 341,246 (1,809,505) (1,997,628)
-------------------------------------------------------------------------
Shares outstanding beginning of period 3,076,654 2,735,408 2,619,167 4,616,795
-------------------------------------------------------------------------
Shares outstanding end of period 3,951,821 3,076,654 809,662 2,619,167
PURCHASES AND SALES OF INVESTMENT SECURITIES:
(excluding Short-Term Securities)
Purchases of securities $ 31,231,830 $ 24,448,943 $ -- $ 19,588,075
Proceeds from sales of securities 35,633,529 30,773,502 21,680,819 48,828,211
Purchases of long-term
U.S. government securities -- -- -- --
Proceeds from sales of long-term
U.S. government securities -- -- -- --
</TABLE>
57
<PAGE>
----------
ICON FUNDS STATEMENTS OF CHANGES IN NET ASSETS
----------
FOR THE PERIODS ENDED AS INDICATED
<TABLE>
<CAPTION>
ICON TECHNOLOGY ICON TELECOMM &
FUND UTILITIES FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, 1999 MARCH 31, 2000 SEPT. 30, 1999
(UNAUDITED) (UNAUDITED)
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ (167,845) $ (709,445) $ 86,294 $ 181,255
Net realized gain/(loss) from
investment transactions 46,647,677 19,133,380 653,657 3,206,174
Net realized gain/(loss) from
foreign currency transactions -- -- -- --
Change in unrealized net appreciation or
depreciation on securities and foreign
currency translations (10,963,562) 33,235,807 (920,681) (1,900,743)
---------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 35,516,270 51,659,742 (180,730) 1,486,686
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- -- (113,833) (650,461)
Distributions in excess of net investment income -- -- -- --
Net capital gains (17,000,001) (4,514,600) (2,034,095) (3,257,812)
Distribution in excess of net capital gains -- -- -- --
---------------------------------------------------------------------------
Net decrease from dividends and distributions (17,000,001) (4,514,600) (2,147,928) (3,908,273)
FUND SHARE TRANSACTIONS:
Shares sold 27,160,565 48,801,630 1,084,062 8,876,725
Reinvested dividends and distributions 16,939,054 4,502,071 2,145,471 3,786,730
Shares repurchased (70,078,298) (105,817,125) (1,352,462) (26,861,906)
---------------------------------------------------------------------------
Net increase (decrease) from fund share transactions (25,978,679) (52,513,424) 1,877,071 (14,198,451)
---------------------------------------------------------------------------
Total increase (decrease) in net assets (7,462,410) (5,368,282) (451,587) (16,620,038)
NET ASSETS:
Beginning of Period 55,125,619 60,493,901 7,129,104 23,749,142
---------------------------------------------------------------------------
End of Period $ 47,663,209 $ 55,125,619 $ 6,677,517 $ 7,129,104
---------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in capital $ 2,258,173 $ 28,236,852 $ 6,261,673 $ 4,384,602
Accumulated undistributed net
investment income/(loss) (167,845) -- 86,294 113,833
Accumulated undistributed net realized
gain/(loss) from investments 38,209,682 8,562,006 633,271 2,013,709
Accumulated net realized gain/(loss)
from foreign currency transactions -- -- -- --
Unrealized appreciation/depreciation on
securities and foreign currency translations 7,363,199 18,326,761 (303,721) 616,960
---------------------------------------------------------------------------
NET ASSETS $ 47,663,209 $ 55,125,619 $ 6,677,517 $ 7,129,104
---------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES:
Shares sold 1,281,981 3,247,322 136,966 737,209
Reinvested dividends and distributions 965,188 361,903 290,321 386,401
Shares repurchased (3,158,154) (7,284,428) (166,480) (2,089,973)
---------------------------------------------------------------------------
Net increase/(decrease) (910,985) (3,675,203) 260,807 (966,363)
---------------------------------------------------------------------------
Shares outstanding beginning of period 2,901,886 6,577,089 710,281 1,676,644
---------------------------------------------------------------------------
Shares outstanding end of period 1,990,901 2,901,886 971,088 710,281
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of securities $ 41,859,621 $ 20,233,772 $ -- $ 1,842,403
Proceeds from sales of securities 89,579,999 80,476,999 2,390,836 18,134,169
Purchases of long-term
U.S. government agencies -- -- -- --
Proceeds from sales of long-term
U.S. government agencies -- -- -- --
<CAPTION>
ICON TRANSPORTATION
FUND
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, 1999
(UNAUDITED)
----------------------------------
<S> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 111,096 $ 24,617
Net realized gain/(loss) from
investment transactions (3,319,116) 1,633,421
Net realized gain/(loss) from
foreign currency transactions -- --
Change in unrealized net appreciation or
depreciation on securities and foreign
currency translations 2,746,870 775,479
------------------------------------
Net increase/(decrease) in net assets
resulting from operations (461,150) 2,433,517
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (29,487)
Distributions in excess of net investment income -- (9,066)
Net capital gains (1,597,342) (1,845,827)
Distribution in excess of net capital gains -- --
------------------------------------
Net decrease from dividends and distributions (1,597,342) (1,884,380)
FUND SHARE TRANSACTIONS:
Shares sold 9,868,040 24,479,459
Reinvested dividends and distributions 1,596,691 1,882,777
Shares repurchased (9,620,421) (17,224,608)
------------------------------------
Net increase (decrease) from fund share transactions 1,844,310 9,137,628
------------------------------------
Total increase (decrease) in net assets (214,182) 9,686,765
NET ASSETS:
Beginning of Period 21,004,331 11,317,566
------------------------------------
End of Period $ 20,790,149 $ 21,004,331
------------------------------------
NET ASSETS CONSIST OF:
Paid in capital $ 22,424,263 $ 20,579,953
Accumulated undistributed net
investment income/(loss) 111,096 --
Accumulated undistributed net realized
gain/(loss) from investments (3,339,230) 1,577,228
Accumulated net realized gain/(loss)
from foreign currency transactions -- --
Unrealized appreciation/depreciation on
securities and foreign currency translations 1,594,020 (1,152,850)
------------------------------------
NET ASSETS $ 20,790,149 $ 21,004,331
------------------------------------
TRANSACTIONS IN FUND SHARES:
Shares sold 1,049,613 2,178,736
Reinvested dividends and distributions 173,931 173,209
Shares repurchased (1,021,459) (1,512,697)
------------------------------------
Net increase/(decrease) 202,085 839,248
------------------------------------
Shares outstanding beginning of period 2,036,734 1,197,486
------------------------------------
Shares outstanding end of period 2,238,819 2,036,734
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of securities $ 9,457,941 $ 17,860,451
Proceeds from sales of securities 10,611,657 11,086,385
Purchases of long-term
U.S. government agencies -- --
Proceeds from sales of long-term
U.S. government agencies -- --
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
58
<PAGE>
<TABLE>
<CAPTION>
ICON SHORT-TERM ICON ASIA
FIXED INCOME FUND REGION FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, 1999 MARCH 31, 2000 SEPT. 30, 1999
(UNAUDITED) (UNAUDITED)
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ 105,255 $ 205,946 $ (86,817) $ (166,907)
Net realized gain/(loss) from
investment transactions 1,523 18,290 5,516,541 (2,102,343)
Net realized gain/(loss) from
foreign currency transactions -- -- (248,233) (178,038)
Change in unrealized net appreciation or
depreciation on securities and foreign
currency translations (20,395) (62,731) (881,272) 19,339,153
---------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 86,383 161,505 4,300,219 16,891,865
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (105,255) (323,211) -- --
Distributions in excess of net investment income -- -- -- --
Net capital gains (18,214) (143,769) -- --
Distribution in excess of net capital gains -- -- -- --
---------------------------------------------------------------------------
Net decrease from dividends and distributions (123,469) (466,980) -- --
FUND SHARE TRANSACTIONS:
Shares sold 27,601,163 28,943,269 81,183,600 56,771,414
Reinvested dividends and distributions 97,753 486,795 -- --
Shares repurchased (26,559,113) (29,363,658) (80,195,791) (66,829,202)
---------------------------------------------------------------------------
Net increase (decrease) from fund share transactions 1,139,803 66,406 987,809 (10,057,788)
---------------------------------------------------------------------------
Total increase (decrease) in net assets 1,102,717 (239,069) 5,288,028 6,834,077
NET ASSETS:
Beginning of Period 5,110,979 5,350,048 33,563,746 26,729,669
---------------------------------------------------------------------------
End of Period $ 6,213,696 $ 5,110,979 $ 38,851,774 $ 33,563,746
---------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in capital $ 6,237,173 $ 5,097,370 $ 41,445,186 $ 40,457,377
Accumulated undistributed net
investment income/(loss) 9,814 9,814 (263,863) (177,046)
Accumulated undistributed net realized
gain/(loss) from investments 1,599 18,290 (7,543,363) (13,059,904)
Accumulated net realized gain/(loss)
from foreign currency transactions -- -- (626,801) (378,568)
Unrealized appreciation/depreciation on
securities and foreign currency translations (34,890) (14,495) 5,840,615 6,721,887
---------------------------------------------------------------------------
NET ASSETS $ 6,213,696 $ 5,110,979 $ 38,851,774 $ 33,563,746
---------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES:
Shares sold 3,028,206 3,106,221 7,082,838 6,208,381
Reinvested dividends and distributions 10,724 52,546 -- --
Shares repurchased (2,913,678) (3,146,922) (6,827,885) (7,511,144)
---------------------------------------------------------------------------
Net increase/(decrease) 125,252 11,845 254,953 (1,302,763)
---------------------------------------------------------------------------
Shares outstanding beginning of period 558,507 546,662 3,088,231 4,390,994
---------------------------------------------------------------------------
Shares outstanding end of period 683,759 558,507 3,343,184 3,088,231
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of securities $ -- $ -- $ 18,745,483 $ 17,697,099
Proceeds from sales of securities -- -- 18,893,473 31,653,017
Purchases of long-term
U.S. government agencies 1,994,480 $ 2,012,760 -- --
Proceeds from sales of long-term
U.S. government agencies 1,500,000 2,515,675 -- --
<CAPTION>
ICON N. EUROPE ICON S. EUROPE
REGION FUND REGION FUND
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, 1999 MARCH 31, 2000 SEPT. 30, 1999
(UNAUDITED) (UNAUDITED)
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATIONS:
Net investment income/(loss) $ (84,856) $ 76,996 $ (30,585) $ (42,796)
Net realized gain/(loss) from
investment transactions 991,193 2,648,461 (12,465) (563,610)
Net realized gain/(loss) from
foreign currency transactions (35,813) (229,605) (4,836) (42,002)
Change in unrealized net appreciation or
depreciation on securities and foreign
currency translations 3,690,665 1,399,867 206,595 1,570,952
-------------------------------------------------------------------------
Net increase/(decrease) in net assets
resulting from operations 4,561,189 3,895,719 158,709 922,544
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income -- (493,690) -- (23,988)
Distributions in excess of net investment income -- (8,471) -- --
Net capital gains (2,406,446) (3,503,483) -- (1,955,771)
Distribution in excess of net capital gains -- -- -- --
-------------------------------------------------------------------------
Net decrease from dividends and distributions (2,406,446) (4,005,644) -- (1,979,759)
FUND SHARE TRANSACTIONS:
Shares sold 49,899,719 51,692,956 2,171,874 10,655,076
Reinvested dividends and distributions 2,403,656 3,996,911 -- 1,966,878
Shares repurchased (50,204,881) (71,334,577) (1,363,746) (15,718,495)
-------------------------------------------------------------------------
Net increase (decrease) from fund share transactions 2,098,494 (15,644,710) 808,128 (3,096,541)
-------------------------------------------------------------------------
Total increase (decrease) in net assets 4,253,237 (15,754,635) 966,837 (4,153,756)
NET ASSETS:
Beginning of Period 23,971,336 39,725,971 5,297,900 9,451,656
-------------------------------------------------------------------------
End of Period $ 28,224,573 $ 23,971,336 $ 6,264,737 $ 5,297,900
-------------------------------------------------------------------------
NET ASSETS CONSIST OF:
Paid in capital $ 22,539,090 $ 20,440,596 $ 7,143,873 $ 6,335,746
Accumulated undistributed net
investment income/(loss) (292,828) (207,972) (78,633) (48,048)
Accumulated undistributed net realized
gain/(loss) from investments 1,219,283 2,634,536 (507,908) (495,443)
Accumulated net realized gain/(loss)
from foreign currency transactions (514,670) (478,857) (111,657) (106,821)
Unrealized appreciation/depreciation on
securities and foreign currency translations 5,273,698 1,583,033 (180,939) (387,534)
-------------------------------------------------------------------------
NET ASSETS $ 28,224,573 $ 23,971,336 $ 6,264,737 $ 5,927,900
-------------------------------------------------------------------------
TRANSACTIONS IN FUND SHARES:
Shares sold 4,053,656 4,550,005 207,382 870,190
Reinvested dividends and distributions 199,143 347,255 -- 172,231
Shares repurchased (4,030,803) (6,270,705) (130,383) (1,315,265)
-------------------------------------------------------------------------
Net increase/(decrease) 221,996 (1,373,445) 76,999 (272,844)
-------------------------------------------------------------------------
Shares outstanding beginning of period 2,042,400 3,415,845 523,653 796,497
-------------------------------------------------------------------------
Shares outstanding end of period 2,264,396 2,042,400 600,652 523,653
Purchases and Sales of Investment Securities:
(excluding Short-Term Securities)
Purchases of securities $ -- $ 14,913,579 $ -- $ 5,451,829
Proceeds from sales of securities 1,899,381 34,313,106 74,903 10,430,521
Purchases of long-term
U.S. government agencies -- -- -- --
Proceeds from sales of long-term
U.S. government agencies -- -- -- --
</TABLE>
59
<PAGE>
----------
ICON FUNDS FINANCIAL HIGHLIGHTS
----------
FOR A SHARE OUTSTANDING THROUGHOUT EACH OF THE PERIODS ENDED AS INDICATED
<TABLE>
<CAPTION>
ICON BASIC
MATERIALS FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MARCH 31, 2000 SEPT. 30, SEPT. 30, SEPT. 30,
(UNAUDITED) 1999 1998 1997(a)
------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.31 $ 6.58 $ 10.90 $ 10.00
Income from investment operations
Net investment income (loss) 0.01 0.02 0.02 (0.01)
Net gains or (losses) on securities
(both realized and unrealized) (0.26) 0.74 (4.08) 0.91
------------------------------------------------------------
Total from investment operations (0.25) 0.76 (4.06) 0.90
Less dividends and distributions
Dividends (from net investment income) - - - -
Distributions in excess of net - (0.03) - -
investment income
Distributions (from net realized gain) - - (0.26) -
Distributions in excess of net
realized gains - - - -
------------------------------------------------------------
Total distributions - (0.03) (0.26) -
------------------------------------------------------------
Net asset value, end of period $ 7.06 $ 7.31 $ 6.58 $ 10.90
------------------------------------------------------------
Total Return (3.42%) 11.65% (37.45%) 9.00%
Net assets, end of period (in thousands) $ 24,164 $ 26,373 $ 17,318 $ 50,251
Average net assets for the period
(in thousands) $ 25,239 $ 17,145 $ 27,117 $ 45,001
Ratio of expenses to average net assets* 1.42% 1.45% 1.33% 1.45%
Ratio of net investment income (loss) to
average net assets* 0.37% 0.16% 0.08% (0.24%)
Portfolio turnover rate 36.12% 118.29% 106.70% 32.35%
* ANNUALIZED FOR PERIODS LESS THAN A YEAR.
a FOR THE PERIOD MAY 5, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
b FOR THE PERIOD JULY 9, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
c FOR THE PERIOD NOVEMBER 5, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1998
d FOR THE PERIOD JULY 1, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
e FOR THE PERIOD FEBRUARY 24, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
f FOR THE PERIOD MAY 9, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
g FOR THE PERIOD FEBRUARY 19, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
h FOR THE PERIOD JULY 9, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
i FOR THE PERIOD MAY 9, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
j FOR THE PERIOD FEBRUARY 7, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
k FOR THE PERIOD FEBRUARY 25, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
l FOR THE PERIOD FEBRUARY 18, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
m FOR THE PERIOD FEBRUARY 20, 1997 (COMMENCEMENT OF OPERATIONS) TO SEPTEMBER 30, 1997
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
60
<PAGE>
<CAPTION>
ICON CONSUMER
CYCLICALS FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30 SEPT. 30 SEPT. 30,
(UNAUDITED) 1999 1998 1997(b)
------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.67 $ 7.87 $ 10.96 $ 10.00
Income from investment operations
Net investment income (loss) (0.01) - (0.01) (0.01)
Net gains or (losses) on securities
(both realized and unrealized) 0.60 2.04 (3.08) 0.97
------------------------------------------------------------
Total from investment operations 0.59 2.04 (3.09) 0.96
Less dividends and distributions
Dividends (from net investment income) - - - -
Distributions in excess of net
investment income - - - -
Distributions (from net realized gain) - - - -
Distributions in excess of net
realized gains - (0.24) - -
------------------------------------------------------------
Total distributions - (0.24) - -
------------------------------------------------------------
Net asset value, end of period $ 10.26 $ 9.67 $ 7.87 $ 10.96
------------------------------------------------------------
Total Return 6.10% 25.78% (28.26%) 9.60%
Net assets, end of period (in thousands) $ 42,083 $ 54,351 $ 49,003 $ 20,916
Average net assets for the period
(in thousands) $ 50,128 $ 58,294 $ 39,883 $ 19,876
Ratio of expenses to average net assets* 1.36% 1.35% 1.37% 1.89%
Ratio of net investment income (loss) to
average net assets* (0.21%) (0.46%) (0.36%) (0.67%)
Portfolio turnover rate 42.82% 27.83% 72.42% 0.00%
<CAPTION>
ICON ENERGY
FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, SEPT. 30,
(UNAUDITED) 1999 1998(c)
------------------------------------------------------------
<S> <C> <C> <C>
Net asset value, beginning of period $ 7.98 $ 6.35 $ 10.00
Income from investment operations
Net investment income (loss) (0.01) 0.01 0.06
Net gains or (losses) on securities
(both realized and unrealized) 2.98 1.69 (3.71)
------------------------------------------------------------
Total from investment operations 2.97 1.70 (3.65)
Less dividends and distributions
Dividends (from net investment income) - (0.05) -
Distributions in excess of net
investment income - (0.02) -
Distributions (from net realized gain) - - -
Distributions in excess of net
realized gains - - -
------------------------------------------------------------
Total distributions - (0.07) -
------------------------------------------------------------
Net asset value, end of period $ 10.95 $ 7.98 $ 6.35
------------------------------------------------------------
Total Return 37.22% 27.28% (36.50%)
Net assets, end of period (in thousands) $ 24,648 $ 19,230 $ 12,335
Average net assets for the period
(in thousands) $ 18,613 $ 13,801 $ 21,128
Ratio of expenses to average net assets* 1.44% 1.45% 1.20%
Ratio of net investment income (loss) to
average net assets* (0.23%) (0.26%) 0.51%
Portfolio turnover rate 1.79% 34.41% 112.62%
<CAPTION>
ICON FINANCIAL
SERVICES FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, SEPT. 30, SEPT. 30,
(UNAUDITED) 1999 1998 1997(d)
------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 8.99 $ 9.37 $ 10.51 $ 10.00
Income from investment operations
Net investment income (loss) 0.01 0.02 0.04 0.01
Net gains or (losses) on securities
(both realized and unrealized) 0.84 1.05 (1.14) 0.50
------------------------------------------------------------
Total from investment operations 0.85 1.07 (1.10) 0.51
Less dividends and distributions
Dividends (from net investment income) - (0.04) (0.01) -
Distributions in excess of net
investment income - (0.02) - -
Distributions (from net realized gain) (0.12) (1.39) (0.03) -
Distributions in excess of net
realized gains - - - -
------------------------------------------------------------
Total distributions (0.12) (1.45) (0.04) -
------------------------------------------------------------
Net asset value, end of period $ 9.72 $ 8.99 $ 9.37 $ 10.51
------------------------------------------------------------
Total Return 9.52% 10.05% (10.46%) 5.10%
Net assets, end of period (in thousands) $ 66,030 $ 5,483 $ 17,211 $ 32,237
Average net assets for the period
(in thousands) $ 6,928 $ 10,415 $ 28,304 $ 29,803
Ratio of expenses to average net assets* 1.44% 1.58% 1.33% 1.70%
Ratio of net investment income (loss) to
average net assets* 1.45% 0.09% 0.35% 0.12%
Portfolio turnover rate 19.65% 53.29% 87.68% 00.00%
</TABLE>
AN EXPLANATION OF THE FINANCIAL HIGHLIGHTS
This schedule provides an analysis of the items that affected the Funds' net
asset value, on a per share basis. This schedule provides the total return,
distributions, assets in the Fund, expense ratios and portfolio turnover.
The first line is the beginning of period net asset value per share (NAV) and
the components of the current fiscal period's activity is shown in sections that
follow. The increase or (decrease) due to investment operations is first,
followed by gains or (losses), either realized or unrealized, then dividends and
distributions are subtracted to arrive at the NAV per share at the end of the
fiscal period.
Also included in this schedule are the Funds' expense ratios, or percentage of
net assets that was used to cover the operating expenses of the Fund during the
period. This is determined by dividing the total expenses incurred by the Fund
by the average net assets in the Fund during the year.
The next item on the schedule is the ratio of net investment income, which is
the net investment income earned from investment operations divided by the
average net assets of the Funds during the reporting period.
The next item is the portfolio turnover rate, which is a measure of the amount
of buying and selling activity in the Funds' portfolio. The turnover is affected
by many things including, market conditions, changes in the size of the Fund,
due to purchases or redemptions by shareholders, the types of Fund investments,
and the investment style of the portfolio manager. A 100% rate implies that an
amount equal to the value of the entire portfolio is turned over during the
reporting period, a 50% rate means that an amount equal to the value of half the
portfolio is traded during the reporting period.
61
<PAGE>
----------
ICON FUNDS FINANCIAL HIGHLIGHTS
----------
FOR A SHARE OUTSTANDING THROUGHOUT EACH OF THE PERIODS ENDED AS INDICATED
<TABLE>
<CAPTION>
ICON HEALTHCARE
FUND
Six Months Ended Year Ended Year Ended Year Ended
March 31, 2000 Sept. 30, Sept. 30, Sept. 30,
(Unaudited) 1999 1998 1997(e)
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 7.98 $ 11.39 $ 11.78 $ 10.00
Income from investment operations
Net investment income (loss) (0.04) -- 0.02 (0.04)
Net gains or (losses) on securities
(both realized and unrealized) 2.48 (0.25) 0.35 1.82
--------------------------------------------------------------------
Total from investment operations 2.44 (0.25) 0.37 1.78
Less dividends and distributions
Dividends (from net investment income) -- -- -- --
Distributions in excess of net
investment income -- -- -- --
Distributions (from net realized gain) (0.31) (3.16) (0.76) --
Distributions in excess of net
realized gains- -- -- -- --
--------------------------------------------------------------------
Total distributions (0.31) (3.16) (0.76) --
--------------------------------------------------------------------
Net asset value, end of period $ 10.11 $ 7.98 $ 11.39 $ 11.78
--------------------------------------------------------------------
Total Return 31.65% (5.34%) 3.77% 17.80%
Net assets, end of period (in thousands) $ 39,939 $ 24,550 $ 31,153 $ 77,307
Average net assets for the period
(in thousands) $ 35,553 $ 29,272 $ 56,620 $ 59,164
Ratio of expenses to average net assets* 1.43% 1.40% 1.24% 1.45%
Ratio of net investment income (loss) to
average net assets* (0.94%) (0.83%) (0.13%) (0.80%)
Portfolio turnover rate 101.99% 85.99% 52.16% 71.81%
<CAPTION>
ICON LEISURE
FUND
Six Months Ended Year Ended Year Ended Year Ended
March 31, 2000 Sept. 30, Sept. 30, Sept. 30,
(Unaudited) 1999 1998 1997(f)
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 12.05 $ 11.79 $ 11.35 $ 10.00
Income from investment operations
Net investment income (loss) 0.04 0.10 0.02 (0.01)
Net gains or (losses) on securities
(both realized and unrealized) (0.84) 1.61 0.45 1.36
--------------------------------------------------------------------
Total from investment operations (0.80) 1.71 0.47 1.35
Less dividends and distributions
Dividends (from net investment income) -- (0.24) -- --
Distributions in excess of net -- (0.03) -- --
investment income
Distributions (from net realized gain) (3.07) (1.18) (0.03) --
Distributions in excess of net
realized gains- -- -- -- --
--------------------------------------------------------------------
Total distributions (3.07) (1.45) (0.03) --
--------------------------------------------------------------------
Net asset value, end of period $ 8.18 $ 12.05 $ 11.79 $ 11.35
--------------------------------------------------------------------
Total Return (6.81%) 14.76% 4.18% 13.50%
Net assets, end of period (in thousands) $ 6,626 $ 31,559 $ 54,426 $ 66,608
Average net assets for the period
(in thousands) $ 28,047 $ 40,054 $ 74,443 $ 45,444
Ratio of expenses to average net assets* 1.51% 1.38% 1.30% 1.48%
Ratio of net investment income (loss) to
average net assets* 0.24% (0.12%) 0.07% (0.36%)
Portfolio turnover rate 0.00% 49.22% 34.17% 2.52%
</TABLE>
* ANNUALIZED FOR PERIODS LESS THAN A YEAR.
a-m LEGENDS ARE AT BOTTOM OF PAGE 60
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
62
<PAGE>
<TABLE>
<CAPTION>
ICON TECHNOLOGY
FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30 SEPT. 30 SEPT. 30,
(UNAUDITED) 1999 1998 1997(g)
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 19.00 $ 9.20 $ 12.96 $ 10.00
Income from investment operations
Net investment income (loss) (0.08) -- (0.06) (0.05)
Net gains or (losses) on securities
(both realized and unrealized) 11.46 10.58 (3.31) 3.01
--------------------------------------------------------------------
Total from investment operations 11.38 10.58 (3.37) 2.96
Less dividends and distributions
Dividends (from net investment income) -- -- -- --
Distributions in excess of net investment income -- -- -- --
Distributions (from net realized gain) (6.44) (0.78) (0.39) --
Distributions in excess of net realized gains- -- -- -- --
--------------------------------------------------------------------
Total distributions (6.44) (0.78) (0.39) --
--------------------------------------------------------------------
Net asset value, end of period $ 23.94 $ 19.00 $ 9.20 $ 12.96
--------------------------------------------------------------------
Total Return 72.27% 119.53% (26.17%) 29.60%
Net assets, end of period (in thousands) $ 47,663 $ 55,126 $ 60,494 $ 41,849
Average net assets for the period (in thousands) $ 64,515 $ 66,977 $ 73,057 $ 29,766
Ratio of expenses to average net assets* 1.36% 1.37% 1.31% 1.47%
Ratio of net investment income
(loss) to average net assets* (0.52%) (1.06%) (0.99%) (0.88%)
Portfolio turnover rate 74.37% 31.75% 31.68% 44.57%
<CAPTION>
ICON TELECOMM
& UTILITES FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, SEPT. 30, SEPT. 30,
(UNAUDITED) 1999 1998 1997(h)
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.04 $ 14.17 $ 10.63 $ 10.00
Income from investment operations
Net investment income (loss) 0.09 0.83 0.31 0.06
Net gains or (losses) on securities
(both realized and unrealized) (0.15) 1.18 3.28 0.57
--------------------------------------------------------------------
Total from investment operations (0.06) 2.01 3.59 0.63
Less dividends and distributions (0.16) (1.02) (0.04) --
Dividends (from net investment income)
Distributions in excess of net investment income -- -- -- --
Distributions (from net realized gain) (2.94) (5.12) (0.01) --
Distributions in excess of net realized gains- -- -- -- --
--------------------------------------------------------------------
Total distributions (3.10) (6.14) (0.05) --
--------------------------------------------------------------------
Net asset value, end of period $ 6.88 $ 10.04 $ 14.17 $ 10.63
--------------------------------------------------------------------
Total Return (2.69%) 15.25% 33.88% 6.30%
Net assets, end of period (in thousands) $ 6,678 $ 7,129 $ 23,749 $ 20,422
Average net assets for the period (in thousands) $ 7,158 $ 9,825 $ 36,698 $ 19,230
Ratio of expenses to average net assets* 1.45% 1.59% 1.34% 1.91%
Ratio of net investment income
(loss) to average net assets* 2.41% 1.84% 2.12% 1.62%
Portfolio turnover rate 0.00% 18.85% 155.72% 2.55%
<CAPTION>
ICON TRANSPORTATION
FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, SEPT. 30, SEPT. 30,
(UNAUDITED) 1999 1998 1997(i)
--------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.31 $ 9.45 $ 12.40 $ 10.00
Income from investment operations
Net investment income (loss) 0.05 0.01 0.01 --
Net gains or (losses) on securities
(both realized and unrealized) (0.27) 1.63 (2.71) 2.40
--------------------------------------------------------------------
Total from investment operations (0.22) 1.64 (2.70) 2.40
Less dividends and distributions
Dividends (from net investment income) -- (0.02) (0.01) --
Distributions in excess of net investment income -- -- -- --
Distributions (from net realized gain) (0.80) (0.76) (0.24) --
Distributions in excess of net realized gains- -- -- -- --
--------------------------------------------------------------------
Total distributions (0.80) (0.78) (0.25) --
--------------------------------------------------------------------
Net asset value, end of period $ 9.29 $ 10.31 $ 9.45 $ 12.40
--------------------------------------------------------------------
Total Return (2.00%) 16.89% (22.08%) 24.00%
Net assets, end of period (in thousands) $ 20,790 $ 21,004 $ 11,318 $ 22,531
Average net assets for the period (in thousands) $ 20,286 $ 24,387 $ 17,975 $ 19,459
Ratio of expenses to average net assets* 1.37% 1.41% 1.41% 1.61%
Ratio of net investment income
(loss) to average net assets* 1.10% 0.10% 0.08% (0.04%)
Portfolio turnover rate 53.02% 47.97% 10.62% 15.97%
</TABLE>
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.
63
<PAGE>
----------
ICON FUNDS FINANCIAL HIGHLIGHTS
----------
FOR A SHARE OUTSTANDING THROUGHOUT EACH OF THE PERIODS ENDED AS INDICATED
<TABLE>
<CAPTION>
ICON SHORT-TERM
FIXED INCOME FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED PERIOD ENDED
MARCH 31, 2000 SEPT. 30, SEPT. 30, SEPT. 30,
(UNAUDITED) 1999 1998 1997(j)
----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.15 $ 9.79 $ 10.03 $ 10.00
Income from investment operations
Net investment income (loss) 0.15 0.43 0.76 0.47
Net gains or (losses) on securities
(both realized and unrealized) (0.03) (0.12) (0.14) 0.03
----------------------------------------------------------------------------------
Total from investment operations 0.12 0.31 0.62 0.50
Less dividends and distributions
Dividends (from net investment income) (0.15) (0.65) (0.53) (0.47)
Distributions in excess of net -- -- -- --
investment income
Distributions (from net realized gain) (0.03) (0.30) (0.33) --
Distributions in excess of net
realized gains -- -- -- --
----------------------------------------------------------------------------------
Total distributions (0.18) (0.95) (0.86) (0.47)
----------------------------------------------------------------------------------
Net asset value, end of period $ 9.09 $ 9.15 $ 9.79 $ 10.03
----------------------------------------------------------------------------------
Total Return 1.68% 3.54% 6.55% 3.18%
Net assets, end of period (in thousands) $ 6,214 $ 5,111 $ 5,350 $ 81,382
Average net assets for the period
(in thousands) $ 5,354 $ 4,658 $ 17,542 $ 128,897
Ratio of expenses to average net assets* 1.57% 1.06%(beta) 0.11%+ 1.10%
Ratio of net investment income (loss) to
average net assets* 3.93% 4.42%(beta) 5.66%+ 4.66%
Portfolio turnover rate 39.14% 53.22% 163.75% 297.62%
</TABLE>
* ANNUALIZED FOR PERIODS LESS THAN A YEAR.
a-m LEGENDS ARE AT BOTTOM OF PAGE 60
# INCLUDES REIMBURSEMENT FROM ADMINISTRATOR FOR FEES AND EXPENSES. IF THESE FEES
AND EXPENSES HAD NOT BEEN REIMBURSED, THE RATIO OF EXPENSES TO AVERAGE NET
ASSETS WOULD HAVE BEEN 2.10% AND THE RATIO OF NET INVESTMENT INCOME TO AVERAGE
NET ASSETS WOULD HAVE BEEN (0.79%).
+ INCLUDES CHANGE IN ACCOUNTING ESTIMATE, SEE NOTE 4. IF THIS CHANGE HAD NOT
BEEN MADE THE RATIO OF EXPENSES TO AVERAGE NET ASSETS WOULD HAVE BEEN 0.84%
AND THE RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE BEEN
4.93%.
(beta) INCLUDES CHANGE IN ACCOUNTING ESTIMATE, SEE NOTE 4. TF THIS CHANGE HAD
NOT BEEN MADE THE RATIO OF EXPENSES TO AVERAGE NET ASSETS WOULD HAVE BEEN
1.48% AND THE RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS WOULD HAVE
BEEN 4.00%
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS
64
<PAGE>
<TABLE>
<CAPTION>
ICON ASIA
REGION FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30 SEPT. 30 SEPT. 30,
(UNAUDITED) 1999 1998 1997(k)
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.87 $ 6.09 $ 9.94 $ 10.00
Income from investment operations
Net investment income (loss) 0.00 (0.01) (0.04) (0.01)
Net gains or (losses) on securities
(both realized and unrealized) 0.75 4.79 (3.81) (0.05)
--------------------------------------------------------------------------
Total from investment operations 0.75 4.78 (3.85) (0.06)
Less dividends and distributions
Dividends (from net investment income) -- -- -- --
Distributions in excess of net
investment income -- -- -- --
Distributions (from net realized gain) -- -- -- --
Distributions in excess of net
realized gains -- -- -- --
--------------------------------------------------------------------------
Total distributions -- -- -- --
--------------------------------------------------------------------------
Net asset value, end of period $ 11.62 $ 10.87 $ 6.09 $ 9.94
--------------------------------------------------------------------------
Total Return 6.90% 78.49% (38.73%) (0.60%)
Net assets, end of period (in thousands) $ 38,852 $ 33,564 $ 26,730 $ 58,279
Average net assets for the period
(in thousands) $ 35,014 $ 29,191 $ 45,361 $ 45,191
Ratio of expenses to average net assets* 1.56% 1.59% 1.65% 1.66%
Ratio of net investment income (loss) to
average net assets* (0.50%) (0.57%) (0.45%) (0.23%)
Portfolio turnover rate 59.10% 62.82% 69.57% 0.00%
<CAPTION>
ICON N. EUROPE
REGION FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, SEPT. 30, SEPT. 30,
(UNAUDITED) 1999 1998 1997(l)
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 11.74 $ 11.63 $ 11.06 $ 10.00
Income from investment operations
Net investment income (loss) (0.03) (0.05) (0.02) 0.07
Net gains or (losses) on securities
(both realized and unrealized) 1.95 1.51 0.79 0.99
---------------------------------------------------------------------
Total from investment operations 1.92 1.46 0.77 1.06
Less dividends and distributions
Dividends (from net investment income) -- (0.17) (0.06) --
Distributions in excess of net
investment income -- -- -- --
Distributions (from net realized gain) (1.20) (1.18) (0.14) --
Distributions in excess of net
realized gains -- -- -- --
---------------------------------------------------------------------
Total distributions (1.20) (1.35) (0.20) --
---------------------------------------------------------------------
Net asset value, end of period $ 12.46 $ 11.74 $ 11.63 $ 11.06
---------------------------------------------------------------------
Total Return 16.71% 12.78% 7.00% 10.60%
Net assets, end of period (in thousands) $ 28,225 $ 23,971 $ 39,726 $ 49,947
Average net assets for the period
(in thousands) $ 27,179 $ 30,993 $ 49,406 $ 36,212
Ratio of expenses to average net assets* 1.56% 1.59% 1.54% 1.66%
Ratio of net investment income (loss) to
average net assets* (0.62%) 0.25% (0.41%) 1.34%
Portfolio turnover rate 0.00% 50.36% 57.84% 13.89%
<CAPTION>
ICON S. EUROPE
REGION FUND
SIX MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MARCH 31, 2000 SEPT. 30, SEPT. 30, SEPT. 30,
(UNAUDITED) 1999 1998 1997(m)
---------------------------------------------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period $ 10.12 $ 11.87 $ 11.90 $ 10.00
Income from investment operations
Net investment income (loss) (0.04) 0.02 (0.23) 0.10
Net gains or (losses) on securities
(both realized and unrealized) 0.35 1.06 0.93 1.80
---------------------------------------------------
Total from investment operations 0.31 1.08 0.70 1.90
Less dividends and distributions
Dividends (from net investment income) -- -- (0.07) --
Distributions in excess of net
investment income -- (0.03) -- --
Distributions (from net realized gain) -- (2.80) (0.66) --
Distributions in excess of net
realized gains -- -- -- --
---------------------------------------------------
Total distributions -- (2.83) (0.73) --
---------------------------------------------------
Net asset value, end of period $ 10.43 $ 10.12 $ 11.87 $ 11.90
---------------------------------------------------
Total Return 3.06% 6.41% 6.11% 19.00%
Net assets, end of period (in thousands) $ 6,265 $ 5,298 $ 9,452 $ 21,088
Average net assets for the period
(in thousands) $ 5,605 $ 8,107 $ 20,263 $ 15,055
Ratio of expenses to average net assets* 1.69% 1.81% 1.56%# 1.69%
Ratio of net investment income (loss) to
average net assets* (1.09%) (0.53%) (0.26%)# 1.92%
Portfolio turnover rate 0.00% 70.65% 113.55% 7.29%
</TABLE>
65
<PAGE>
----------
ICON FUNDS
----------
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000 (UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES.
The ICON Basic Materials Fund (Basic Materials Fund), ICON Consumer Cyclicals
Fund (Consumer Cyclicals Fund), ICON Energy Fund (Energy Fund), ICON Financial
Services Fund, (Financial Services Fund) ICON Healthcare Fund (Healthcare Fund),
ICON Leisure Fund (Leisure Fund), ICON Technology Fund (Technology Fund), ICON
Telecommunication & Utilities Fund (Telecommunication and Utilities Fund), ICON
Transportation Fund (Transportation Fund)-(collectively, the Domestic Funds),
and ICON North Europe Region Fund (North Europe Fund), ICON South Europe Region
Fund (South Europe Fund) and ICON Asia Region Fund (Asia Fund) (collectively,
the International Funds) and ICON Short-Term Fixed Income Fund (Short-Term Fixed
Income Fund) are series funds (collectively, the Funds) which are part of the
ICON Funds (the Trust), a Massachusetts business trust, which is registered
under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end, non-diversified management investment company. The Trust has sixteen
funds (of which twelve are currently in operation) which invest primarily in
securities of companies whose principal business activities fall within specific
industries or regions, and one short-term fixed income fund which invests
primarily in short-term U.S. Treasury and U.S. Government Agency instruments.
Each fund is authorized to issue an unlimited number of no par shares. The
investment objective of the Domestic and International Funds is to provide
long-term capital appreciation. The investment objective of the Short-Term Fixed
Income Fund is to attain high current income consistent with preservation of
capital.
The following is a summary of significant accounting policies consistently
followed by the Funds in the preparation of their financial statements. The
preparation of financial statements in conformity with generally accepted
accounting principles requires management to make certain estimates and
assumptions that affect the reported amounts of assets and liabilities,
disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of income and expenses during the reporting
period. Actual results could differ from these estimates.
INVESTMENT VALUATION.
The Funds' securities and other assets are valued at the close of the regular
trading session of the New York Stock Exchange (the "Exchange") (normally 4:00
p.m. New York time) each day the Exchange is open. The Funds' securities and
other assets are valued as follows: securities listed or traded primarily on
foreign exchanges, national exchanges and the Nasdaq Stock market are valued at
the last sale price as of the close of the Exchange, or, if such a price is
lacking for the trading period immediately preceding the time of determination,
such securities are valued at the last bid price. Securities that are traded in
the over-the-counter market are valued at the last quoted sales price or if such
a sales price is lacking a last sales price a security is valued at its last bid
price. The market value of individual securities held by the Funds are
determined by using pricing services that provide market prices to other mutual
funds or, as needed, by obtaining market quotations from independent
broker/dealers. Securities and assets for which quotations are not readily
available are valued at fair values determined in good faith pursuant to
consistently applied procedures established by the trustees. Short-term
securities including demand notes with remaining maturities of sixty days or
less for which quotations are not readily available are valued at amortized cost
or original cost plus accrued interest, both of which approximate market value.
REPURCHASE AGREEMENTS.
Repurchase agreements, if held by the Funds are fully collateralized by U.S.
Government securities and such collateral is in the possession of the Funds'
custodian. The collateral is evaluated daily to ensure its market value exceeds
the current market value of the repurchase agreements including accrued
interest. In the event of default on the obligation to repurchase, the Funds
have the right to liquidate the collateral and apply the proceeds in
satisfaction of the obligation. In the event of default or bankruptcy by the
other party to the agreement, realization and/or retention of the collateral or
proceeds may be subject to legal proceedings.
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.
66
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Dividends paid by the Funds from net investment income and distributions of net
realized short-term gains are for federal income tax purposes, taxable as
ordinary income to shareholders.
Dividends and distributions to shareholders are recorded by the Funds on the
ex-dividend/distribution date. The Funds distribute net realized capital gains,
if any, to shareholders at least annually, if not offset by capital loss
carryovers. Income distributions and capital gain distributions are determined
in accordance with income tax regulations which may differ from generally
accepted accounting principles.
INVESTMENT INCOME.
Dividend income is recorded on the ex-dividend date. Non-cash dividends included
in dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Certain dividends
from foreign securities will be recorded as soon as the Funds are informed of
the dividend if such information is obtained subsequent to the ex-dividend date.
EXPENSES.
Most expenses of the Funds can be directly attributed to each specific fund.
Expenses which cannot be directly attributed are apportioned between all Funds
based upon relative net assets.
DEFERRED ORGANIZATIONAL COSTS.
Organizational costs are being amortized over five years by the Funds. The
amortization started once the Funds had assets and began investment operations.
INVESTMENT TRANSACTIONS.
Security transactions are accounted for as of trade date. Gains and losses on
securities sold are determined on the basis of identified cost.
The Funds may have elements of risk due to concentrated investments in specific
industries or in foreign issuers located in a specific country. Such
concentrations may subject the Funds to additional risks resulting from future
political or economic conditions and/or possible impositions of adverse foreign
governmental laws or currency exchange restrictions.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
INVESTMENT ADVISORY FEES
DOMESTIC AND INTERNATIONAL FUNDS
As the Funds' investment advisor, Meridian Investment Management Corporation
(MIMCO) receives a monthly fee that is computed daily at an annual rate of 1.00%
of the Domestic and International Funds' average net assets.
SHORT-TERM FIXED INCOME FUND
As the Fund's investment advisor, MIMCO receives a monthly fee that is computed
daily at an annual rate of .65% of the Fund's average net assets.
TRANSFER AGENT, CUSTODY AND ACCOUNTING FEES.
Firstar Mutual Fund Services, LLC and Firstar Bank of Milwaukee (Firstar)
provides custodial services, transfer agent services and fund accounting for the
Funds. The Funds pay a fee at an annual rate of 0.15% on the Trust's first $500
million of average daily net assets, 0.13% on the next $500 million of average
daily net assets, and 0.12% on the balance of average daily net assets. The
Funds also pay for various out-of-pocket costs incurred by Firstar that are
estimated to be 0.02% of the average daily net assets.
On behalf of the International Funds, Firstar has entered into an agreement with
Chase Manhattan Bank (Chase) to provide international custodial services. The
Funds pay an annual rate of 0.112% of average daily net assets plus a per trade
transaction cost for these custodial services.
ADMINISTRATIVE SERVICES
The Funds have entered into an administrative services agreement with MIMCO.
This agreement provides for an annual fee of 0.05% on the Funds' first $500
million of average daily net assets and 0.04% on average daily net assets in
excess of $500 million.
RELATED PARTIES
Certain officers and directors of MIMCO are also officers and trustees of the
Funds.
3. FEDERAL INCOME TAX.
Net investment income distributions and capital gain distributions are
determined in accordance with income tax regulations which may differ from
generally accepted accounting principles. These differences are due to differing
treatments for items such as deferral of wash sales, foreign currency
transactions, net operating losses, capital loss carry forwards and deemed
distributions on redemptions.
Net capital loss carryovers expire in 2006 and 2007. To the extent future
capital gains are offset by capital loss carryovers, such gains will not be
distributed to shareholders.
67
<PAGE>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
3. FEDERAL INCOME TAX. (CONTINUED)
The aggregate composition of unrealized appreciation and depreciation of
investment securities for federal income tax purposes as of March 31, 2000.
<TABLE>
<CAPTION>
FUND NET UNREALIZED NET CAPITAL
UNREALIZED UNREALIZED APPRECIATION LOSS POST OCTOBER
APPRECIATION (DEPRECIATION) (DEPRECIATION) CARRYOVERS LOSS DEFERRAL
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ICON Basic Materials Fund $ 3,047,133 $(2,641,402) $ 405,731 $ 9,416,109 $ 2,119,955
ICON Consumer Cyclicals Fund $ 6,419,484 $(1,991,277) $ 4,428,207 $ 557,945 $ 5,936,026
ICON Energy Fund $ 6,484,250 $ (911,392) $ 5,572,858 $ 1,605,236 $ 2,996,701
ICON Financial Services Fund $ 2,798,447 $ (276,462) $ 2,521,985 $ -- $ --
ICON Healthcare Fund $ 1,766,008 $(2,283,808) $ (517,800) $ -- $ --
ICON Leisure Fund $ 1,078,862 $(1,374,679) $ (295,817) $ -- $ --
ICON Technology Fund $ 8,656,743 $(1,293,544) $ 7,363,199 $ -- $ --
ICON Telecommunication and
Utilities Fund $ 636,211 $ (939,932) $ (303,721) $ -- $ --
ICON Transportation Fund $ 2,391,450 $ (797,430) $ 1,594,020 $ -- $ --
ICON Short-Term
Fixed Income Fund $ -- $ (34,890) $ (34,890) $ -- $ --
ICON Asia Region Fund $ 7,234,961 $(1,501,914) $ 5,733,047 $10,241,800 $ 1,900,493
ICON North Europe Region Fund $ 6,865,324 $(1,592,457) $ 5,272,867 $ -- $ 207,970
ICON South Europe Region Fund $ 663,678 $ (849,360) $ (185,682) $ 39,533 $ 608,432
</TABLE>
4. ACCOUNTING ESTIMATES
The ICON Short-Term Fixed Income Fund had an estimated net overaccrual of
expenses of approximately $157,000 as of September 30, 1997 which was not
material to the financial statements as of that date. However, due to the
substantial decrease in the net assets of the Fund during the year ended
September 30, 1998 the net estimated overaccrual of $127,000 became material to
the financial statements of the Fund. The Fund has determined that it received a
net benefit due to this estimated overaccrual and will identify and reimburse
shareholders who provided this benefit. The amount of this benefit is identified
as due to redeemed shareholders in the Statement of Assets and Liabilities. This
has been accounted for as a change in accounting estimate and adjusted for as of
September 30, 1998.
During the year ended September 30, 1999, as the shareholders who provided the
benefit were being identified, and as a result of additional information, a
change in the estimate reduced the amount to $57,539.
68
<PAGE>
---------------
ICON FUNDS 2000 SEMI-ANNUAL REPORT
---------------
THIS SPACE IS AVAILABLE FOR YOUR NOTES
<PAGE>
ICON FUNDS
FOR MORE INFORMATION ON ICON FUNDS, CONTACT US AT:
Toll-Free: (888) 389-ICON
Facsimile: (303) 790-8246
12835 East Arapahoe Road
Tower II, Penthouse
Englewood, Colorado 80112
DISTRIBUTED BY MERIDIAN CLEARING CORP., MEMBER NASD
Copyright-May 31, 2000 ICON Funds
