<PAGE>
August 15, 1996
Fellow Shareowners:
It is a pleasure to submit this Annual Report and to welcome our many new
shareowners who have joined us since our last Report by opening regular,
Gifts/Transfers to Minors, and qualified retirement plan accounts.
Interestingly, shareowner investments through Bull & Bear IRA, SEP-IRA, Profit
Sharing/Money Purchase, 403(b) and Keogh accounts represent over 32% of the
Fund's total net assets.
FUND'S TOTAL RETURN +21% FOR THE YEAR
We are also pleased to report that the Fund's total return for its fiscal year
ended June 30, 1996 was +21.01% versus +15.36% for the Morningstar Precious
Metals Fund Average. We believe the Fund's approach of investing worldwide in
shares of both developing and established mining companies, as well as in gold,
platinum and silver bullion, make it an attractive and unique long term precious
metals investment choice.
GOLD JEWELRY SALES SET RECORD
Gold jewelry sales totaled $1.6 billion for the first quarter of 1996, 10.2%
above the first quarter of 1995, which in turn was 7.9% higher than 1994. Unit
sales were up 10.0% and 9.7%, respectively. This marks the 18th consecutive
quarter in which sales of gold jewelry have increased, a record of consistent
growth since 1991. This also represents the highest quarterly percentage
increase since the World Gold Council began sponsoring the U.S. Retail Audit in
1988.
GOLD PRICE SPIKES TO $417
Gold prices rallied strongly at the beginning of 1996. This was largely due to
continuing strong demand for gold and an announcement by Barrick Gold
Corporation, the world's most profitable gold mining company, that it had
reduced its forward sales of gold bullion (sales of future production, also
known as hedging) by one third or about 100 tons. A similar announcement by the
number two North American producer, Placer Dome, followed shortly, stating that
forward selling would only occur if the company could realize $450 an ounce.
Gold's trading range was quickly broken on the upside and topped out in early
February at $417 an ounce. With prospects for higher gold prices less likely due
to a sharp decline in the cost of forward sales, the gold price dropped sharply
and has stabilized in the $380-$390 range. At this point gold appears to be
building a base from which it can move back above the $400 level.
<PAGE>
The Fund's strategy under these conditions was to stay relatively fully
invested in a global portfolio of mining shares, and add smaller, new project
development companies with the potential for growth regardless of fluctuations
in the price of gold.
Given the sharply increasing demand for gold and gold jewelry, particularly in
the rapidly growing markets in developing countries such as India, mainland
China and South Korea, plus the potential for a pick-up of inflation in those
countries, we believe this may be an opportune time to add to precious metals
positions. We especially favor building your account on a regular basis, which
can be done safely, automatically and conveniently through the Bull & Bear Bank
Transfer Plan, Bull & Bear Salary Investing Plan and/or Bull & Bear Government
Direct Deposit Plan. For information on these free services, simply give us a
call and we will help you get started.
If you have any questions or would like information on any of the Bull & Bear
Funds, the Bull & Bear No-Fee IRA/(R)/ or opening a discount brokerage account
at Bull & Bear Securities, where you can earn American Airlines/(R)
/AAdvantage/(R)/ miles on every trade, we would be pleased to hear from you.
Just call 1-800-847-4200, and an Investor Service Representative will be glad to
assist you, as always, without any obligation on your part.
Sincerely,
[SIGNATURE OF KJELD THYGESEN] [SIGNATURE OF JAMES TURK]
Kjeld Thygesen James Turk
Portfolio Manager Strategic Advisor
_______________________________________________________________________________
TOTAL RETURN PERFORMANCE GRAPHS
- -------------------------------
Bull & Bear Gold Investors ("Fund")
Standard & Poor's 500 Stock Index ("S&P 500")
Morningstar Specialty Fund-Precious Metals Average ("PMFA")
The performance graph shows results of an initial investment of $10,000 in Bull
& Bear Gold Investors, in Standard & Poor's 500 Stock Index, and in Morningstar
Specialty Fund-Precious Metals Average from July 1, 1985 to June 30, 1996.
Results in each case reflect reinvestment of dividends and distributions. The
Index is unmanaged and fully invested in common stocks. The Fund invests
primarily in gold, platinum and silver bullion, a global portfolio of securities
of companies involved in mining, processing or dealing in gold or other precious
metals, and may invest in fixed income securities for temporary defensive
purposes.
_______________________________________________________________________________
[PERFORMANCE GRAPH APPEARS HERE]
<TABLE>
<CAPTION>
AVERAGE
FINAL TOTAL ANNUAL
VALUE RETURN RETURN
----- ------ -------
<S> <C> <C> <C>
Fund $19,645 96.45% 6.99%
S&P 500 36,478 264.78 13.82
PMFA 21,771 117.71 8.09
</TABLE>
_______________________________________________________________________________
2
<PAGE>
[LOGO OF BULL & BEAR APPEARS HERE]
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
<S> <C> <C>
INCOME FUNDS-- MONEY . BULL & BEAR A high quality money market
MARKET, DOLLAR RESERVES fund investing in U.S.
U.S. GOVERNMENT, Government securities. Income
MUNICIPAL AND is generally free from state
GLOBAL income and intangible personal
property taxes. (For Bull &
. Monthly Dividends Bear Performance Plus/(R)/
-----
. Free, Unlimited discount brokerage accounts,
Check Writing ($250 there is no check writing
minimum per check) minimum.)
. BULL & BEAR Investing for a high level of
U.S. GOVERNMENT current income, liquidity and
SECURITIES FUND safety of principal.
. BULL & BEAR Investing for the highest
MUNICIPAL INCOME FUND possible income exempt from
Federal income tax that is
consistent with preservation of
principal.
. BULL & BEAR Investing for a high level of
GLOBAL INCOME FUND income from a global portfolio
of primarily investment grade
fixed income securities.
- -------------------------------------------------------------------------------
GROWTH FUNDS--
U.S., GLOBAL . BULL & BEAR Invests worldwide for the
AND PRECIOUS U.S. AND OVERSEAS highest possible total return.
METALS FUND
. BULL & BEAR Invests aggressively for
SPECIAL EQUITIES FUND maximum capital appreciation.
. BULL & BEAR
GOLD INVESTORS Seeks long term capital
appreciation in investments
with the potential to provide a
hedge against inflation and
preserve the purchasing power
of the dollar.
Call our toll-free number for a prospectus containing
more complete information, including charges and
expenses. Please read it carefully before you invest.
- -------------------------------------------------------------------------------
DISCOUNT . BULL & BEAR Receive the investment
BROKERAGE SECURITIES, INC. information you need and the
SERVICES low commissions you expect.
Plus you can earn American
CALL TOLL FREE Airlines/(R)/ AAdvantage/(R)/
1-800-VIP-4200 miles every time you trade. And
you can save an additional 10%
off our already low commission
rates when you use Bull & Bear
PC OnLine Investment Center/SM/
and/or Bull & Bear TeleQuote/
TeleTrade/SM/. (There is no
check writing minimum for Bull
& Bear Performance Plus/(R)/
-----
accounts.)
--------------------------------------------------------
Total Return Performance. For the periods ended June
30, 1996, Bull & Bear Gold Investors' total return
for one year was 21.01%, average annual total return
for the past five years was 7.18% and for the past
ten years was 6.98%. The Morningstar Precious Metals
Fund Average represents the average performance of 40
precious metals mutual funds. Past performance does
not guarantee future results. Investment return will
fluctuate, so shares when redeemed may be worth more
or less than their cost. Dollar cost averaging does
not assure a profit or protect against loss in a
declining market, and investors should consider their
ability to invest when prices are low.
</TABLE>
3
<PAGE>
BULL & BEAR GOLD INVESTORS LTD.
SCHEDULE OF PORTFOLIO INVESTMENTS--JUNE 30, 1996
<TABLE>
<CAPTION>
SHARES MARKET VALUE
- -------------- -------------
<S> <C> <C>
BULLION (1.2%)
Gold
802.340 Troy Ounces . . . . . . . . . . . . . $ 305,250
-----------
TOTAL BULLION (COST: $308,066) . . . . . . 305,250
-----------
COMMON STOCKS AND WARRANTS (97.0%)
NORTH AMERICAN (70.9%)
100,000 Banro Resource Corp. Special Warrants* (1) . 586,188
25,000 Barrick Gold Corp. . . . . . . . . . . . . . 678,125
30,000 Bresea Resources Ltd.* . . . . . . . . . . . 280,092
240,000 Canyon Resources Corp.* . . . . . . . . . . . 675,000
150,000 Colossal Resources Corp.* . . . . . . . . . . 906,180
250,000 Cornucopia Resources Ltd. Units* (1) . . . . 236,802
350,000 Dayton Mining Corp.* . . . . . . . . . . . . 2,100,000
50,000 Fairmile Gold Corp.* . . . . . . . . . . . . 148,650
100,000 Fairmile Gold Corp. Units *(1) . . . . . . . 253,130
45,000 Firstmiss Gold Inc.* . . . . . . . . . . . . 1,485,000
50,000 Golden Cycle Gold Corp. * (1) (2) . . . . . . 376,250
450,000 Goldstake Explorations, Inc. Units* (1) . . . 205,587
300,000 Granges Inc.* . . . . . . . . . . . . . . . . 431,250
195,000 Greenstone Resources Ltd.* (1) . . . . . . . 2,207,438
50,000 Homestake Mining Co. . . . . . . . . . . . . 856,250
150,000 Miramar Mining Corp.* . . . . . . . . . . . . 825,000
40,000 Newmont Mining Corp. . . . . . . . . . . . . 1,975,000
30,000 Pioneer Group, Inc. . . . . . . . . . . . . . 802,500
103,000 REA Gold Corp.* . . . . . . . . . . . . . . . 212,438
482,500 Rio Narcea Gold Mines Ltd.* . . . . . . . . . 1,483,929
50,000 Trillion Resources Ltd. Units* (1) . . . . . 161,095
11,000 Valerie Gold Resources Ltd. Special
Warrants* (1) . . . . . . . . . . . . . . . . 109,547
185,380 Viceroy Resources Corp.* . . . . . . . . . . 1,072,405
100,000 West Africa Mining Exploration* . . . . . . . 556,520
-----------
18,624,376
-----------
AUSTRALIAN (9.9%)
300,000 Emperor Mines Ltd.* . . . . . . . . . . . . . 708,330
700,000 Golden Shamrock Mines Ltd.* . . . . . . . . . 628,040
250,000 Normandy Mining Ltd. . . . . . . . . . . . . 395,475
25,000 Sons of Gwalia Ltd. N.L. ADR . . . . . . . . 885,430
-----------
2,617,275
-----------
SOUTH AFRICAN (16.2%)
17,300 Beatrix Mines Ltd. ADR . . . . . . . . . . . 138,827
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
SHARES MARKET VALUE
- -------------------------- -------------
<S> <C> <C>
Blyvooruitzicht Gold Mining Co.
250,000 Ltd.. . . . . . . . . . . . . . . $ 421,186
75,000 Driefontein Consolidated Ltd. ADR 984,375
314,130 East Daggafontein Mines Ltd. ADR 879,565
Free State Consolidated Gold Mines
50,000 Ltd. ADR . . . . . . . . . . . . 462,500
170,000 Vaal Reefs Exploration & Mining 1,360,000
Co. Ltd. ADR -----------
4,246,453
-----------
TOTAL COMMON STOCKS AND WARRANTS
(COST: $19,760,261) . . . . . 25,488,104
-----------
CONTRACTS
- --------------------------
OPTIONS (1.8%)
Blyvooruitzicht Gold Mining Co.
250 Ltd. due 12/31/00 . . . . . . . . 288,483
50 Gold options, due 7/12/96 . . . . 2,000
400 Normandy Mining Ltd., due 4/30/01 182,271
-----------
TOTAL OPTIONS (COST: $377,910) 472,754
-----------
TOTAL INVESTMENTS (COST:
$20,446,237) (100.0%) . . . . $26,266,108
===========
</TABLE>
- ---------
* Indicates non-income producing security.
(1) Restricted security (see note 4).
(2) Affiliated company.
See accompanying notes to financial statements.
5
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
June 30, 1996
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at market value (cost:
$20,446,237) (note 1) . . . . . . . . . $26,266,108
Cash . . . . . . . . . . . . . . . . . . 1,357,478
Receivables:
Investment securities sold . . . . . . . 277,047
Dividends . . . . . . . . . . . . . . . 21,638
Fund shares sold . . . . . . . . . . . . 6,495
Other assets . . . . . . . . . . . . . . 1,866
-----------
Total assets . . . . . . . . . . . . . 27,930,632
-----------
LIABILITIES:
Payables:
Investment securities purchased . . . . 307,574
Fund shares redeemed . . . . . . . . . . 24,970
Accrued management and distribution fees 34,189
Accrued expenses . . . . . . . . . . . . 74,905
-----------
Total liabilities . . . . . . . . . . 441,638
-----------
NET ASSETS: (applicable to 1,960,355
outstanding shares: 500,000,000 shares of
$.01 par value authorized) . . . . . . . $27,488,994
===========
NET ASSET VALUE, OFFERING AND REDEMPTION
PRICE PER SHARE ($27,488,994 / 1,960,355) $14.02
======
At June 30, 1996, net assets consisted of:
Paid-in capital . . . . . . . . . . . . . $18,775,693
Accumulated net realized gain on
investments. . . . . . . . . . . . . . . 2,902,296
Accumulated deficit in net investment
income . . . . . . . . . . . . . . . . . (4,030)
Net unrealized appreciation on investments
and foreign currencies . . . . . . . . . 5,815,035
-----------
$27,488,994
===========
</TABLE>
STATEMENT OF OPERATIONS
Year Ended June 30, 1996
<TABLE>
<CAPTION>
INVESTMENT INCOME:
<S> <C>
Dividends (net of foreign taxes of $19,355) $ 408,945
Interest . . . . . . . . . . . . . . . . . 26,755
----------
Total investment income . . . . . . . . 435,700
----------
EXPENSES:
Distribution (note 3) . . . . . . . . . . . 304,104
Investment management (note 3) . . . . . . 276,798
Professional (note 3) . . . . . . . . . . . 74,783
Custodian . . . . . . . . . . . . . . . . . 64,035
Registration (note 3) . . . . . . . . . . . 39,764
Shareholder administration (note 3) . . . . 37,801
Transfer agent . . . . . . . . . . . . . . 37,005
Interest (note 5) . . . . . . . . . . . . . 35,907
Printing . . . . . . . . . . . . . . . . . 32,062
Directors . . . . . . . . . . . . . . . . . 7,900
Other . . . . . . . . . . . . . . . . . . . 15,065
----------
Total expenses . . . . . . . . . . . . . 925,224
----------
Net investment loss . . . . . . . . . . (489,524)
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS, FOREIGN CURRENCIES AND FUTURES:
Net realized loss from foreign currency and
futures transactions . . . . . . . . . . . (583,523)
Net realized gain from security transactions 3,674,899
Unrealized appreciation of investments and
foreign currencies during the period . . . 3,477,953
----------
Net realized and unrealized gain on
investments, foreign currencies and futures
. . . . . . . . . . . . . . . . . . . . . 6,569,329
----------
Net increase in net assets resulting from
operations . . . . . . . . . . . . . . . . $6,079,805
==========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
For the Years Ended June 30,
<TABLE>
<CAPTION>
1996 1995
----------- ------------
<S> <C> <C>
OPERATIONS:
Net investment income (loss). . . . . . . . . . $ (489,524) $ 5,509
Net realized gain (loss) from foreign currency
and futures transactions . . . . . . . . . . . (583,523) 975,079
Net realized gain from security transactions . 3,674,899 2,389,836
Unrealized appreciation (depreciation) of
investments and foreign currencies during the
period . . . . . . . . . . . . . . . . . . . . 3,477,953 (2,712,993)
----------- -----------
Net increase in net assets resulting from
operations. . . . . . . . . . . . . . . . 6,079,805 657,431
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net realized gains ($1.61 and
$1.45 per share, respectively) . . . . . . . . (3,216,598) (3,905,985)
CAPITAL SHARE TRANSACTIONS:
Change in net assets resulting from capital
share transactions (a) . . . . . . . . . . . . (4,381,207) (4,347,133)
----------- -----------
Total change in net assets . . . . . . . . . . (1,518,000) (7,595,687)
NET ASSETS:
Beginning of period . . . . . . . . . . . . . . 29,006,994 36,602,681
----------- -----------
End of period (including accumulated deficit in
net investment income of $4,030 in 1996) . . . $27,488,994 $29,006,994
=========== ===========
</TABLE>
- ---------
(a) Transactions in capital shares were as follows:
<TABLE>
<CAPTION>
1996 1995
------------------------- ----------------------------
SHARES VALUE SHARES VALUE
---------- ------------ ------------ --------------
<S> <C> <C> <C> <C>
Shares sold . . . . 4,753,718 $ 65,651,412 36,345,648 $ 526,406,106
Shares issued in
reinvestment of
distributions . . 244,202 2,950,243 242,171 3,489,682
Shares redeemed . . (5,246,276) (72,982,862) (36,708,963) (534,242,921)
---------- ------------ ----------- -------------
Net decrease . . . (248,356) $ (4,381,207) (121,144) $ (4,347,133)
========== ============ =========== =============
</TABLE>
See accompanying notes to financial statements.
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS
(1) The Fund is registered under the Investment Company Act of 1940, as amended,
as a non-diversified, open-end management investment company. The investment
objective of the Fund is long term capital appreciation. The Fund seeks to
achieve its investment objective by investing in securities of companies
involved directly or indirectly in mining, processing or dealing in gold or
other precious metals and in gold, platinum and silver bullion. Income is the
secondary objective. The following is a summary of significant accounting
policies consistently followed by the Fund in the preparation of its financial
statements. With respect to security valuation, investments in securities traded
on a national securities exchange and securities traded on the Nasdaq National
Market System ("NMS") are valued at the last quoted sales price on the day the
valuations are made. Such securities that are not traded on a particular day,
securities traded in the over-the-counter market that are not on the NMS, and
bullion are valued at the mean between the last reported bid and asked prices.
Foreign securities, currencies and gold, platinum and silver coins are valued in
U.S. dollars. Securities and bullion for which quotations are not readily
available and other assets are valued as determined in good faith by or under
the direction of the Board of Directors. Security transactions are accounted for
on the trade date (the date the order to buy or sell is executed). Dividend
income and distributions to shareholders are recorded on the ex-dividend date.
Interest income is recorded on an accrual basis. Discounts and premiums on
securities purchased are amortized over the life of the respective securities.
In preparing financial statements in conformity with generally accepted
accounting principles, management makes estimates and assumptions that affect
the reported amounts of assets and liabilities at the date of the financial
statements, as well as the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
(2) The Fund intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and to distribute
substantially all of its taxable investment income and net capital gains, if
any, after utilization of any capital loss carryforward, to its shareholders and
therefore no Federal income tax provision is required. Based upon Federal income
tax cost of $20,509,506, gross unrealized appreciation and gross unrealized
depreciation were $6,773,704 and $1,017,102, respectively at June 30, 1996.
Distributions paid to shareholders during the year ended June 30, 1996 differ
from net realized gains from security transactions as determined for financial
reporting purposes principally as a result of utilization of capital loss
carryforwards, wash sales, and capital gains distributions paid in the
subsequent year.
(3) The Fund retains Bull & Bear Advisers, Inc. as its Investment Manager. Under
the terms of the Investment Management Agreement, the Investment Manager
receives a management fee, payable monthly, based on the average daily net
assets of the Fund at an annual rate of 1% on the first $10 million, 7/8 of 1%
over $10 million up to $30 million, 3/4 of 1% over $30 million up to $150
million, 5/8 of 1% over $150 million up to $500 million, and 1/2 of 1% over $500
million. The Investment Manager has undertaken that the operating expenses of
the Fund for each fiscal year (including management fees but excluding taxes,
interest, brokerage commissions and distribution plan expenses), expressed as a
percentage of average daily net assets, will not exceed the lowest rate
prescribed by any state in which shares of the Fund are qualified for sale.
Currently, such limitation is 2 1/2% of the first $30 million of such assets, 2%
of the next $70 million and 1 1/2% of the remaining net assets. If the Fund's
expenses exceed such rates, the Investment Manager will reimburse the Fund for
any excess. Pursuant to the Investment Management Agreement, the Investment
Manager retains Lion Resource Management Limited (the "Subadviser") regarding
portfolio investments. Pursuant to the Subadvisory agreement, the Subadviser
advises and consults with the Investment Manager regarding the selection,
clearing and safekeeping of the Fund's portfolio investments and assists in
pricing and generally monitoring such
8
<PAGE>
investments. The Subadviser also provides the Investment Manager with advice as
to allocating the Fund's portfolio assets among various countries, including the
United States and among equities, bullion and other types of investments,
including recommendations of specific investments. The Investment Manager, not
the Fund, pays the Subadviser monthly a percentage of the Investment Manager's
net fees based upon the Fund's performance and net assets. Certain officers and
directors of the Fund are officers and directors of the Investment Manager and
Investor Service Center, Inc., the Fund's distributor. The Fund reimbursed the
Investment Manager $15,141 for providing certain administrative and accounting
services at cost for the year ended June 30, 1996. During the year ended June
30, 1996, the Fund paid $23,712 to Bull & Bear Securities, Inc., an affiliate of
the Investment Manager in commissions for brokerage services.
The Fund has adopted a plan of distribution pursuant to Rule 12b-1 under the
Investment Company Act of 1940 (the "Plan"). Pursuant to the Plan, the Fund pays
the Distributor a distribution fee in an amount of three-quarters of one percent
per annum of the Fund's average daily net assets and a service fee in an amount
of one-quarter of one percent per annum of the Fund's average daily net assets.
The fee for service activities is intended to cover personal services provided
to shareholders in the Fund and the maintenance of shareholder accounts. The fee
for distribution activities is to cover all other activities and expenses
primarily intended to result in the sale of the Fund's shares. Investor Service
Center also received $37,801 for shareholder administration services which it
provided to the Fund at cost for the year ended June 30, 1996.
(4) Purchases and proceeds of sales of securities other than short term notes
and bullion aggregated $17,515,638 and $25,753,787, respectively, for the year
ended June 30, 1996. On June 30, 1996, the Fund held certain securities which
are subject to restrictions on resale. Investments in restricted securities are
valued at fair value as determined in good faith by or under the direction of
the Board of Directors. Date of acquisition and cost of restricted securities
are as follows:
<TABLE>
<CAPTION>
DATE OF
SHARES ACQUISITION COST VALUE
- ------- ----------- ---------- ------------
<S> <C> <C> <C> <C>
100,000 Banro Resource Corp. Special
Warrants. . . . . . . . . . . 6/6/96 $ 659,220 $ 586,188
250,000 Cornucopia Resources Ltd. Unit 3/18/96 367,661 236,802
100,000 Fairmile Gold Corp. Units . . 3/21/96 146,827 253,130
20,000 Golden Cycle Gold Corp. . . . 5/15/96 120,000 113,750
450,000 Goldstake Explorations, Inc.
Units . . . . . . . . . . . . 2/26/96 490,677 205,587
20,000 Greenstone Resources Ltd . . . 3/28/96 146,708 205,875
50,000 Trillion Resources Ltd. Units 5/24/96 203,748 161,095
11,000 Valerie Gold Resources Ltd 111,898 109,547
Special Warrants . . . . . . 5/28/96 ---------- ----------
$2,246,739 $1,871,974
========== ==========
</TABLE>
At June 30, 1996, the total value of restricted securities represent 6.81% of
net assets.
(5) The Fund has a committed bank line of credit for temporary or emergency
purposes. As part of the agreement the Fund is required to pledge securities it
holds in its portfolio if there is an outstanding balance. At June 30, 1996,
there was no balance outstanding and the interest rate was equal to the Federal
Reserve Funds Rate plus 1.75 percent. For the year ended June 30, 1996, the
weighted average interest rate was 8.1% based on the balances outstanding during
the year and the weighted average amount outstanding was $501,113.
9
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEARS ENDED JUNE 30,
----------------------------------------------------
1996 1995 1994 1993 1992
------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C>
PER SHARE DATA
Net asset value at
beginning of period $ 13.13 $ 15.71 $ 16.98 $ 11.62 $ 12.49
------- ------- ------- ------- -------
Income from investment
operations:
Net investment income
(loss). . . . . . . (.22) -- (.11) (.03) (.10)
Net realized and
unrealized gain
(loss) on
investments . . . . 2.72 (1.13) (1.05) 5.39 (.72)
------- ------- ------- ------- -------
Total from
investment
operations . . . . 2.50 (1.13) (1.16) 5.36 (.82)
------- ------- ------- ------- -------
Less distributions:
Distributions from
net investment
income. . . . . . . -- -- -- -- (.05)
Distributions from
net realized gains
on investments . . (1.61) (1.45) (.11) -- --
------- ------- ------- ------- -------
Total distributions (1.61) (1.45) (.11) -- (.05)
------- ------- ------- ------- -------
Net asset value at end
of period . . . . . $ 14.02 $ 13.13 $ 15.71 $ 16.98 $ 11.62
======= ======= ======= ======= =======
TOTAL RETURN . . . . 21.01% (8.01)% (6.92)% 46.13% (6.57)%
======= ======= ======= ======= =======
RATIOS/SUPPLEMENTAL
DATA
Net assets at end of
period (000's
omitted) . . . . . . $27,489 $29,007 $36,603 $47,489 $24,939
======= ======= ======= ======= =======
Ratio of expenses to
average net assets
(a). . . . . . . . . 2.93% 2.82% 2.54% 3.01% 2.96%
======= ======= ======= ======= =======
Ratio of net
investment income
(loss) to average net
assets (b) . . . . . (1.49)% .12% (.65)% (.27)% (.61)%
======= ======= ======= ======= =======
Portfolio turnover
rate . . . . . . . . 61% 158% 129% 156% 97%
======= ======= ======= ======= =======
Average commission per
share. . . . . . . . $ .02
=======
</TABLE>
(a) Ratios including interest expense were 3.05%, 2.93%, 2.57%, 3.03% and 2.98%
for the years ending June 30, 1996, 1995, 1994, 1993 and 1992, respectively.
(b) Ratios including interest expense were (1.61)%, .01%, (.68)%, (.29)% and
(.63)% for the years ending June 30, 1996, 1995, 1994, 1993 and 1992,
respectively.
10
<PAGE>
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors and Shareholders of
Bull & Bear Gold Investors Ltd.:
We have audited the accompanying statement of assets and liabilities of Bull &
Bear Gold Investors Ltd., including the schedule of portfolio investments as of
June 30, 1996, and the related statement of operations for the year then ended,
the statement of changes in net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audit.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned as of June
30, 1996, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Bull &
Bear Gold Investors Ltd. as of June 30, 1996, the results of its operations for
the year then ended, the changes in its net assets for each of the two years in
the period then ended, and the financial highlights for each of the five years
in the period then ended, in conformity with generally accepted accounting
principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
July 12, 1996
11
