TANAKA GROWTH FUND
R SHARES
PROSPECTUS
JANUARY 31, 2000
INVESTMENT OBJECTIVE:
Growth of capital
230 Park Avenue, Suite 960
New York, New York 10169
877-4-TANAKA
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
10262 02/17/2000
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TABLE OF CONTENTS
PAGE
ABOUT THE FUND.................................................................1
FEES AND EXPENSES OF INVESTING IN THE FUND.....................................3
HOW TO BUY SHARES..............................................................4
HOW TO REDEEM SHARES...........................................................6
DETERMINATION OF NET ASSET VALUE...............................................7
DIVIDENDS, DISTRIBUTIONS AND TAXES.............................................8
MANAGEMENT OF THE FUND.........................................................8
FINANCIAL HIGHLIGHTS...........................................................9
FOR MORE INFORMATION..................................................BACK COVER
<PAGE>
ABOUT THE FUND
INVESTMENT OBJECTIVE
The investment objective of the TANAKA Growth Fund is growth of capital.
PRINCIPAL STRATEGIES
The Fund invests primarily in common stocks and other equity securities
of small, medium and large capitalization companies. The Fund will invest
primarily in domestic securities, but it may also invest up to 45% of its net
assets, measured at the time of investment, in foreign securities, including
multinational and emerging market securities. The Fund is a non-diversified
fund, which means that the Fund may take larger positions in a small number of
companies than a diversified fund.
The Fund's investments in equity securities will generally consist of
issues which the Fund's advisor believes have capital growth potential due to
factors such as:
o rapid growth in demand in existing markets;
o expansion into new markets;
o new product introductions;
o reduced competitive pressures;
o cost reduction programs;
o changes in management; and
o other fundamental changes which may result in improved earnings growth or
increased asset values.
The Fund's advisor relies on research, management meetings and industry
contacts to identify:
o companies with above-average long-term earnings growth potential that could
exceed market expectations;
o industries that are positioned to participate in strong demographic,
societal or economic trends; and
o companies within those industries that have a particular competitive
advantage or niche.
The Fund may sell a security when:
o the fundamentals of the company decline;
o the security reaches a target price or price-to-earnings ratio; or
o the Fund's advisor determines to reallocate assets to a security with
superior capital growth potential.
While it is anticipated that the Fund will diversify its investments
across a range of industry sectors, certain sectors are likely to be
overweighted compared to others because the Fund's advisor seeks the best
investment opportunities regardless of sector. The Fund may, for example, be
overweighted at times in the telecommunications, technology and
pharmaceutical/health care sectors. The sectors in which the Fund may be
overweighted will vary at different points in the economic cycle.
PRINCIPAL RISKS OF INVESTING IN THE FUND
MANAGEMENT RISK. The advisor's growth-oriented approach may fail to produce the
intended results.
SMALLER COMPANY RISK. To the extent the Fund invests in smaller capitalization
companies, the Fund will be subject to additional risks. These include:
o The earnings and prospects of smaller companies are more volatile than
larger companies.
o Smaller companies may experience higher failure rates than do larger
companies.
o The trading volume of securities of smaller companies is normally less than
that of larger companies and, therefore, may disproportionately affect
their market price, tending to make them fall more in response to selling
pressure than is the case with larger companies.
o Smaller companies may have limited markets, product lines or financial
resources and may lack management experience.
COMPANY RISK. The value of the Fund may decrease in response to the activities
and financial prospects of an individual company in the Fund's portfolio. The
value of an individual company can be more volatile than the market as a whole.
MARKET RISK. Overall stock market risks may also affect the value of the Fund.
Factors such as domestic economic growth and market conditions, interest rate
levels, and political events affect the securities markets and could cause the
Fund's share price to fall.
FOREIGN RISK. To the extent the Fund invests in foreign securities, the
Fund could be subject to greater risks because the Fund's performance may depend
on issues other than the performance of a particular company. Changes in foreign
economies and political climates are more likely to affect the Fund than a
mutual fund that invests exclusively in U.S. companies. The value of foreign
securities is also affected by the value of the local currency relative to the
U.S. dollar. There may also be less government supervision of foreign markets,
resulting in non-uniform accounting practices and less publicly available
information.
Investment in securities of issuers based in underdeveloped emerging
markets entails all of the risks of investing in securities of foreign issuers
outlined in this section to a heightened degree. These heightened risks include:
(i) greater risks of expropriation, confiscatory taxation, nationalization, and
less social, political and economic stability; (ii) the smaller size of the
market for such securities and a low or nonexistent volume of trading, resulting
in lack of liquidity and in price volatility; (iii) certain national policies
which may restrict a Fund's investment opportunities; and (iv) in the case of
Eastern Europe and in China and other Asian countries, the absence of developed
capital markets and legal structures governing private or foreign investment and
private property and the possibility that recent favorable economic and
political developments could be slowed or reversed by unanticipated events.
In addition to brokerage commissions, custodial services and other costs
relating to investment in emerging markets are generally more expensive than in
the United States. Such markets have been unable to keep pace with the volume of
securities transactions, making it difficult to conduct such transactions.
NON-DIVERSIFICATION RISK. As a non-diversified fund, the Fund's portfolio may at
times focus on a limited number of companies and will be subject to
substantially more investment risk and potential for volatility than a
diversified fund. SECTOR RISK. If the Fund's portfolio is overweighted in a
certain industry sector, any negative development affecting that sector will
have a greater impact on the Fund than a fund that is not overweighted in that
sector. For example, to the extent the Fund is overweighted in the
telecommunications sector, the technology sector or the pharmaceutical/health
care sector, it will be affected by developments affecting the applicable
sector. All three sectors are subject to changing government regulations that
may limit profits and restrict services offered. Companies in these sectors also
may be significantly affected by intense competition, and their products may be
subject to rapid obsolescence.
VOLATILITY RISK. Common stocks tend to be more volatile than other investment
choices. The value of an individual company can be more volatile than the market
as a whole. This volatility affects the value of the Fund's shares.
ADDITIONAL RISKS.
o An investment in the Fund is not a deposit of any bank and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency.
o The Fund is not a complete investment program. As with any mutual fund
investment, the Fund's returns will vary and you could lose money.
IS THE FUND RIGHT FOR YOU?
The Fund may be suitable for:
o Long-term investors seeking a fund with a growth investment strategy; o
Investors who can tolerate the greater risks associated with common stock
investments;
o Investors willing to accept the greater market price fluctuations of
smaller companies;
o Investors who can tolerate the increased risks of foreign and emerging
market securities; or
o Investors who can tolerate the increased risks and price fluctuations
associated with a non-diversified fund.
GENERAL
The investment objective of the Fund may be changed without shareholder
approval.
From time to time, the Fund may take temporary defensive positions which
are inconsistent with the Fund's principal investment strategies, in attempting
to respond to adverse market, economic, political, or other conditions. For
example, the Fund may hold all or a portion of its assets in money market
instruments or repurchase agreements. If the Fund invests in shares of a money
market fund, the shareholders of the Fund generally will be subject to
duplicative management fees. As a result of engaging in these temporary
measures, the Fund may not achieve its investment objective. The Fund may also
invest in such instruments at any time to maintain liquidity or pending
selection of investments in accordance with its policies.
HOW THE FUND HAS PERFORMED
The bar chart and table below show the variability of the Fund's
returns, which is one indicator of the risks of investing in the Fund. The bar
chart shows the Fund's performance for 1999, and the best and worst quarters for
that year follow the bar chart. The table shows how the Fund's average annual
total returns compare over time to those of a broad-based securities market
index. As with all mutual funds, past results are not an indication of future
performance.
1999 57.9%
During the period shown, the highest return for a quarter was 51.1% (Q4,
1999); and the lowest return was -1.7% (Q1, 1999).
AVERAGE ANNUAL TOTAL RETURNS (through December 31, 1999):
One Year Since Inception1
The Fund 57.9% 59.9%
S&P 500 Index 21.1% 20.7%
Russell 2000 Index 21.3% 24.2%
1December 30, 1998
FEES AND EXPENSES OF INVESTING IN THE FUND
The tables describe the fees and expenses that you may pay if you buy and hold
shares of the Fund.
SHAREHOLDER FEES (fees paid directly from your investment)
Maximum Sales Charge (Load) Imposed on Purchases ...........................NONE
Maximum Deferred Sales Charge (Load)........................................NONE
Redemption Fee..............................................................NONE
Exchange Fee................................................................NONE
ANNUAL FUND OPERATING EXPENSES (expenses that are deducted from Fund assets)
Management Fees............................................................1.00%
Distribution (12b-1) Fees (A)..............................................0.25%
Other Expenses (B) .......................................................12.64%
Total Annual Fund Operating Expenses (B) .................................13.89%
Expense Reimbursement (B) (C).............................................12.14%
Net Expenses (After Expense Reimbursement) ................................1.75%
(A) Long-term shareholders may pay more than the economic equivalent of the
maximum front-end sales charge permitted by rules of the National
Association of Securities Dealers, Inc.
(B) These percentage amounts reflect an average Fund size of $668,868.
(C) The Fund's advisor has contractually agreed to limit the total expenses of
the Fund (excluding interest, taxes, brokerage, and extraordinary expenses)
to an annual rate of 1.75% of the average net assets of the Fund
attributable to the Class R shares until April 1, 2001.
Example:
The example below is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The example uses
the same assumptions as other mutual fund prospectuses: a $10,000 initial
investment for the time periods indicated, reinvestment of dividends and
distributions, 5% annual total return, constant operating expenses, and sale of
all shares at the end of each time period. Although your actual expenses may be
different, based on these assumptions your costs1 will be:
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ -------- ------- --------
$179 $2,982 $5,291 $9,437
1 Your actual expenses may be different because expenses are a function of Fund
size. These costs assume an average Fund size of $668,868 for each of the next
ten years.
HOW TO BUY SHARES
The purchase of Class R shares is only available to the following
persons:
o Current shareholders in Class R, or the spouse, siblings, children,
grandchildren, parents, or grandparents of any such person or any such
person's spouse (collectively "relatives");
o Investment advisory clients of the Fund's advisor and their relatives;
o Officers and trustees of the Fund, officers, directors and employees of the
Fund's advisor and their relatives, or any trust or individual retirement
account or self-employed retirement plan for the benefit of any such person
or relative;
o Shares purchased on behalf of wrap fee client accounts by broker-dealers
that have sales agreements with the distributor of the Fund;
o Registered representatives employed by broker-dealers that have sales
agreements with the distributor of the Fund, and their spouses and children
(or any trust or individual retirement account or self-employed retirement
plan for the benefit of any such person); and
o Shares purchased on behalf of clients of financial planners, registered
investment advisors, bank trust departments and other financial
intermediaries with service agreements with the distributor of the Fund.
The minimum initial investment in the Fund is $1,000 and minimum
subsequent investments are $500. The Fund may waive the minimum under certain
circumstances.
INITIAL PURCHASE
BY MAIL - To be in proper form, your initial purchase request must
include: o a completed and signed investment application form (which accompanies
this Prospectus); and o a check (subject to the minimum amounts) made payable to
the Fund.
Mail the application and check to:
U.S. Mail: Overnight:
TANAKA Funds, Inc TANAKA Funds, Inc.
c/o Unified Fund Services, Inc. c/o Unified Fund Services, Inc.
P.O. Box 6110 431 North Pennsylvania Street
Indianapolis, Indiana 46206-6110 Indianapolis, Indiana 46204
BY WIRE - You may also purchase shares of the Fund by wiring federal
funds from your bank, which may charge you a fee for doing so. To wire money,
you must call Unified Fund Services, Inc. the Fund's transfer agent at
877-4-TANAKA to set up your account and obtain an account number. You should be
prepared at that time to provide the information on the application. Then,
provide your bank with the following information for purposes of wiring your
investment:
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Firstar Bank, N.A.
ABA #0420-0001-3
Attn: TANAKA Funds, Inc.: TANAKA Growth Fund
Account Name _________________(write in shareholder name)
For the Account # ______________(write in shareholder account number)
D.D.A.#488922451
You must also mail a signed application to Unified Fund Services, Inc.,
the Fund's transfer agent, at the above address in order to complete your
initial wire purchase. Wire orders will be accepted only on a day on which the
Fund, custodian and transfer agent are open for business. A wire purchase will
not be considered made until the wired money is received and the purchase is
accepted by the Fund. Any delays which may occur in wiring money, including
delays which may occur in processing by the banks, are not the responsibility of
the Fund or the transfer agent. There is presently no fee for the receipt of
wired funds.
THROUGH FINANCIAL INSTITUTIONS- You may purchase and redeem shares of the Fund
through brokers and other financial institutions that have entered into sales
agreements with AmeriPrime. These institutions may charge a fee for their
services and are responsible for promptly transmitting purchase, redemption and
other requests to the Fund. The Fund is not responsible for the failure of any
institution to promptly forward these requests.
If you purchase shares through a broker-dealer or financial
institution, your purchase will be subject to its procedures, which may include
charges, limitations, investment minimums, cutoff times and restrictions in
addition to, or different from, those applicable to shareholders who invest in
the Fund directly. You should acquaint yourself with the institution's
procedures and read this Prospectus in conjunction with any materials and
information provided by the institution. If you purchase Fund shares in this
manner, you may or may not be the shareholder of record and, subject to your
institution's and the Fund's procedures, may have Fund shares transferred into
your name. There is typically a one to five day settlement period for purchases
and redemptions through broker-dealers.
ADDITIONAL INVESTMENTS
You may purchase additional shares of the Fund at any time (subject to
minimum investment requirements) by mail, wire, or automatic investment. Each
additional mail purchase request must contain:
-your name -the name of your account(s)
-your account number(s) -a check made payable to TANAKA Funds, Inc.
Checks should be sent to the TANAKA Funds, Inc., c/o Unified Fund Services at
the address listed above. A bank wire should be sent as outlined above.
DESCRIPTION OF CLASSES
The Fund currently is authorized to offer three classes of shares:
Class A, Class B and Class R shares. Each Class is subject to different expenses
and a different sales charge structure.
When purchasing shares, please specify that you are purchasing Class R
shares. The differing expenses applicable to the different Classes of the Fund's
shares may affect the performance of those Classes. Broker/dealers and others
entitled to receive compensation for selling or servicing Fund shares may
receive more with respect to one Class than another.
DISTRIBUTION PLAN
The Fund has adopted a plan under Rule 12b-1 that allows Class R of the
Fund to pay distribution fees for the sale and distribution of its shares and
allows the Class to pay for services provided to shareholders. Class R shares
pay annual 12b-1 expenses of 0.25%. Because these fees are paid out of the
Fund's assets on an on-going basis, over time these fees will increase the cost
of your investment and may cost you more than paying other types of sales
charges.
AUTOMATIC INVESTMENT PLAN
You may make regular investments in the Fund with an Automatic
Investment Plan by completing the appropriate section of the account
application, obtainable from the transfer agent. Investments may be made monthly
or quarterly. You may terminate the automatic investment or change the amount of
your monthly purchase at any time by written notification to the Transfer Agent.
TAX SHELTERED RETIREMENT PLANS
Since the Fund is oriented to longer-term investments, the Fund may be
an appropriate investment medium for tax-sheltered retirement plans, including:
individual retirement plans (IRAs); simplified employee pensions (SEPs); 401(k)
plans; qualified corporate pension and profit-sharing plans (for employees); tax
deferred investment plans (for employees of public school systems and certain
types of charitable organizations); and other qualified retirement plans. You
should contact the Fund's transfer agent for the procedure to open an IRA or SEP
plan, as well as more specific information regarding these retirement plan
options. Please consult with an attorney or tax advisor regarding these plans.
You must pay custodial fees for your IRA by redemption of sufficient shares of
the Fund from the IRA unless you pay the fees directly to the IRA custodian.
Call the Fund's transfer agent about the IRA custodial fees.
OTHER PURCHASE INFORMATION
The Fund may limit the amount of purchases and refuse to sell to any
person. If your check or wire does not clear, you will be responsible for any
loss incurred by the Fund. If you are already a shareholder, the Fund can redeem
shares from any identically registered account in the Fund as reimbursement for
any loss incurred. You may be prohibited or restricted from making future
purchases in the Fund.
HOW TO REDEEM SHARES
You may receive redemption payments by check or federal wire transfer.
The proceeds may be more or less than the purchase price of your shares,
depending on the market value of the Fund's securities at the time of your
redemption. Presently there is no charge for wire redemptions; however, the Fund
may charge for this service in the future. Any charges for wire redemptions will
be deducted from your Fund account by redemption of shares. If you redeem your
shares through a broker/dealer or other institution, you may be charged a fee by
that institution.
BY MAIL - You may redeem any part of your account in the Fund at no charge
by mail. Your request should be addressed to:
TANAKA Funds, Inc.
c/o Unified Fund Services, Inc.
P.O. Box 6110
Indianapolis, Indiana 46206-6110
Requests to sell shares are processed at the net asset value next
calculated after we receive your order in proper form. To be in proper form,
your request for a redemption must include your letter of instruction, including
the Fund name, account number, account name(s), the address, and the dollar
amount or number of shares you wish to redeem. This request must be signed by
all registered share owner(s) in the exact name(s) and any special capacity in
which they are registered. The Fund may require that signatures be guaranteed by
a bank or member firm of a national securities exchange. Signature guarantees
are for the protection of shareholders. At the discretion of the Fund or the
Fund's transfer agent, a shareholder, prior to redemption, may be required to
furnish additional legal documents to insure proper authorization.
BY TELEPHONE - You may redeem any part of your account in the Fund by
calling the Fund's transfer agent at 877-4-TANAKA. You must first complete the
Optional Telephone Redemption and Exchange section of the investment application
to institute this option. The Fund, the transfer agent and the custodian are not
liable for following redemption or exchange instructions communicated by
telephone that they reasonably believe to be genuine. However, if they do not
employ reasonable procedures to confirm that telephone instructions are genuine,
they may be liable for any losses due to unauthorized or fraudulent
instructions. Procedures employed may include recording telephone instructions
and requiring a form of personal identification from the caller.
The Fund or the transfer agent may terminate the telephone redemption
procedures at any time. During periods of extreme market activity, it is
possible that shareholders may encounter some difficulty in telephoning the
Fund, although neither the Fund nor the transfer agent has ever experienced
difficulties in receiving and in a timely fashion responding to telephone
requests for redemptions or exchanges. If you are unable to reach the Fund by
telephone, you may request a redemption or exchange by mail.
BY WIRE- If you have elected wire redemption privileges, the Fund will,
upon request, transmit the proceeds of any redemption greater than $10,000 by
Federal Funds wire to a bank account designated on your Account Application.
Presently there is no charge for wire redemptions; however, the Fund reserves
the right to charge for this service. Any charge for wire redemptions will be
deducted from your Fund account by redemption of shares. If you wish to request
bank wire redemptions by telephone, you must also elect telephone redemption
privileges.
ADDITIONAL INFORMATION - If you are not certain of the requirements for
a redemption please call the Fund's transfer agent at 877-4-TANAKA. Redemptions
specifying a certain date or share price cannot be accepted and will be
returned. You will be mailed the proceeds on or before the fifth business day
following the redemption. However, payment for redemption made against shares
purchased by check will be made only after the check has been collected, which
normally may take up to fifteen calendar days. Also, when the New York Stock
Exchange is closed (or when trading is restricted) for any reason other than its
customary weekend or holiday closing, or under any emergency circumstances (as
determined by the Securities and Exchange Commission) the Fund may suspend
redemptions or postpone payment dates.
Because the Fund incurs certain fixed costs in maintaining shareholder
accounts, the Fund may require you to redeem all of your shares in the Fund on
60 days' written notice if the value of your shares in the Fund is less than
$1,000 due to redemption, or such other minimum amount as the Fund may determine
from time to time. An involuntary redemption constitutes a sale. You should
consult your tax advisor concerning the tax consequences of involuntary
redemptions. You may increase the value of your shares in the Fund to the
minimum amount within the 60-day period. Your shares are subject to redemption
at any time if the Board of Trustees determines in its sole discretion that
failure to so redeem may have materially adverse consequences to all or any of
the shareholders of the Fund.
DETERMINATION OF NET ASSET VALUE
The price you pay for your shares is based on the Fund's net asset
value per share (NAV). The NAV is calculated at the close of trading (normally
4:00 p.m. Eastern time) on each day the New York Stock Exchange is open for
business (the Stock Exchange is closed on weekends, Federal holidays and Good
Friday). The NAV is calculated by dividing the value of the Fund's total assets
(including interest and dividends accrued but not yet received) minus
liabilities (including accrued expenses) by the total number of shares
outstanding.
The Fund's assets are generally valued at their market value. If market
prices are not available, or if an event occurs after the close of the trading
market that materially affects the values, assets may be valued by the Fund's
advisor at their fair value, according to procedures approved by the Fund's
board of trustees.
Requests to purchase and sell shares are processed at the NAV next
calculated after we receive your order in proper form.
DIVIDENDS, DISTRIBUTIONS AND TAXES
DIVIDENDS AND DISTRIBUTIONS. The Fund typically distributes
substantially all of its net investment income in the form of dividends and
taxable capital gains to its shareholders. These distributions are automatically
reinvested in the Fund unless you request cash distributions on your application
or through a written request. The Fund expects that its distributions will
consist primarily of capital gains.
TAXES. In general, selling shares of the Fund and receiving
distributions (whether reinvested or taken in cash) are taxable events.
Depending on the purchase price and the sale price, you may have a gain or a
loss on any shares sold. Any tax liabilities generated by your transactions or
by receiving distributions are your responsibility. Because distributions of
long-term capital gains are subject to capital gains taxes, regardless of how
long you have owned your shares, you may want to avoid making a substantial
investment when a Fund is about to make a long-term capital gains distribution.
Early each year, the Fund will mail to you a statement setting forth
the federal income tax information for all distributions made during the
previous year. If you do not provide your taxpayer identification number, your
account will be subject to backup withholding.
The tax considerations described in this section do not apply to
tax-deferred accounts or other non-taxable entities. Because each investor's tax
circumstances are unique, please consult with your tax advisor about your
investment.
MANAGEMENT OF THE FUND
Tanaka Capital Management, Inc., 230 Park Avenue, Suite 960, New York, New
York 10169, serves as investment advisor to the Fund. Tanaka Capital Management,
Inc. has been providing portfolio management services since its founding, in
1986, by Graham Y. Tanaka. In addition to the assets of the Fund, the investment
advisor and its affiliates manage other assets of approximately $200 million.
Graham Y. Tanaka has been primarily responsible for the day-to-day
management of the Fund's portfolio since its inception in December 1998. Mr.
Tanaka has approximately 12 years of experience managing a mutual fund
portfolio, and has approximately 18 years of experience managing investment
portfolios for private clients. From 1973 until 1978, Mr. Tanaka was a research
analyst at Morgan Guaranty Trust. He then worked at Fiduciary Trust Company of
New York as Vice President from 1978-1980. Prior to launching Tanaka Capital,
Mr. Tanaka served as Chairman at Milbank Tanaka & Associates from 1980 to 1986.
He is a member of The Electronic Analyst Group and also a member of the
Healthcare Analyst Association. Mr. Tanaka currently serves on the boards of
TransAct Technologies, Inc. and Tridex Corporation. He is a 1971 graduate of
Brown University (BS, BA), a 1973 graduate of Stanford University (MBA) and a
Chartered Financial Analyst (CFA).
During the fiscal period from December 30, 1998 to November 30, 1999,
the Fund paid the advisor a fee equal to 1.00% of its average daily net assets.
The advisor may pay certain financial institutions (which may include banks,
brokers, securities dealers and other industry professionals) a fee for
providing distribution related services and/or for performing certain
administrative servicing functions for Fund shareholders to the extent these
institutions are allowed to do so by applicable statute, rule or regulation.
<PAGE>
FINANCIAL HIGHLIGHTS
The following condensed supplementary financial information for the
period December 30, 1998 (commencement of operations) to November 30, 1999 is
derived from the audited financial statements of the Fund. The financial
statements of the Fund have been audited by McCurdy & Associates CPA's, Inc.,
independent public accountants, and are included in the Fund's Annual Report.
The Annual Report contains additional performance information and is available
upon request and without charge.
Tanaka Growth Fund - Class R
SELECTED PER SHARE DATA
Net asset value, beginning of period $ 10.00
---------------
Income from investment operations
Net investment income (0.08)
Net realized and unrealized gain (loss) 3.13
---------------
---------------
Total from investment operations 3.05
---------------
Net asset value, end of period $ 13.05
===============
TOTAL RETURN (b) 30.50%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000) $1,495
Ratio of expenses to average net assets 1.75% (a)
Ratio of expenses to average net assets
before reimbursement 13.89% (a)
Ratio of net investment income (loss) to
average net assets (0.80)% (a)
Ratio of net investment income (loss) to
average net assets before reimbursement (12.94)% (a)
Portfolio turnover rate 53.45% (a)
(a) Annualized
(b) For periods of less than a full year, total returns are not annualized.
<PAGE>
FOR MORE INFORMATION
Several additional sources of information are available to you. The
Statement of Additional Information (SAI), incorporated into this prospectus by
reference, contains detailed information on Fund policies and operations. Annual
and semi-annual reports contain management's discussion of market conditions,
investment strategies and performance results as of the Fund's latest
semi-annual or annual fiscal year end.
Call the Funds at 877-4-TANAKA to request free copies of the SAI and
the Fund's annual and semi-annual reports, to request other information about
the Fund and to make shareholder inquiries.
You may review and copy information about the Fund (including the SAI
and other reports) at the Securities and Exchange Commission (SEC) Public
Reference Room in Washington, D.C. Call the SEC at 1-202-942-8090 for room hours
and operation. You may also obtain reports and other information about the Fund
on the EDGAR Database on the SEC's Internet site at http.//www.sec.gov, and
copies of this information may be obtained, after paying a duplicating fee, by
electronic request at the following e-mail address: [email protected], or by
writing the SEC's Public Reference Section of the SEC, Washington, D.C.
20549-0102.
Investment Company Act #811-9096
<PAGE>
STICKER
The following should be read in conjunction with the section titled
"How to Invest in the Fund" on page __ of the Prospectus. Class R shares of the
TANAKA Growth Fund are available for purchase to all investors whose investment
is received no later than April 17, 2000. For more information, please call
TANAKA Capital directly at (212) 490-3380 or the Transfer Agent at 877-4-TANAKA.
