Gold Investors
11 Hanover Square, New York, NY 10005
1-888-503-FUND for Investment Information
1-888-503-VOICE for Shareholder Services
Investing in Mining Shares
and Gold, Platinum and
Silver Bullion for Long
Term Capital Appreciation
Annual Report
December 31, 1998
February 14, 1999
Fellow Shareholders:
It is a pleasure to welcome our shareholders who have opened a new
account since our last Report, either directly or through their discount
brokerage account at Charles Schwab & Co., Fidelity Investments, Waterhouse
Securities, Jack White & Co., or Bull & Bear Securities. The Fund continues to
be popular among long term investors who are retired or planning for retirement,
as evidenced by the fact that approximately one third of the Fund's net asset
value represents investments by shareholders in their IRA and other qualified
retirement plan accounts.
Review and Outlook
While gold began and finished the year 1998 at approximately the same
price level in U.S. dollars, it was buffeted by a variety of often negative
factors along the way, with the price falling to a 19-year low of $271 in late
August. It subsequently rallied to $300 as the hedge fund, Long Term Capital
Management, had its financial crisis land on world markets. The subsequent
rescue by a group of banks and major investment firms helped restore stability
to financial markets, and gold fell back to the $280 level.
A major factor causing weakness in the gold price in 1998 was the
decline in most commodity prices, especially crude oil. These declines put a
damper on inflation as measured by the Consumer Price Index, which fell to an
0.8% rate in the fourth quarter, the lowest in 40 years.
The Federal Reserve has reported, however, that M3, a broad measure
of money supply, grew by 11.3% in 1998. This is the highest rate in 16 years,
and suggests that inflation could well be in the pipeline and certainly remains
a threat. At M3's prior peak, the inflation rate was 6.6%.
The weakness of the gold price during the year negatively impacted
gold mining shares. While major producers declined sharply, smaller producers
and project development companies were particularly hard hit. Many stocks made
multi-year lows before showing some recovery and gold stock indices declined
more than 30%. Reflecting these conditions, shares of the Fund declined 32.21%
for the year.
Nevertheless, the condition of the gold mining industry continues to
improve. Despite its difficulties, significant consolidation has taken place in
South Africa, North America and Australia, resulting in enhanced productivity,
reduced costs and higher profits. South African mines also enjoyed increased
revenues as a result of an approximately 20% devaluation of the rand in July.
The Fund's strategy has been to invest in equity securities of
companies involved directly or indirectly in mining, processing or dealing in
gold and other precious metals, and gold bullion. The Fund also invested in
companies that own or develop natural resources and other basic commodities, in
securities of selected growth companies, and U.S.
<PAGE>
Government securities. In addition, the Fund selectively employed leverage and
futures strategies in attempting to enhance returns.
In view of the depressed level, as well as the volatility of the
precious metals markets, we recommend building your account over time by
investing on a regular basis, which can be done safely, automatically and
conveniently through the Investor Service Center Bank Transfer Plan, the
Investor Service Center Salary Investing Plan, and/or the Investor Service
Center Government Direct Deposit Plan. For information on any of 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
Investor Service Center Funds, or the Investor Service Center No-Fee
Traditional, Roth or Education IRA, we would be very pleased to hear from you.
Just call 1-888-503- FUND (3863), and an Investor Service Representative will be
glad to assist you, as always, without any obligation on your part.
Sincerely,
Robert D. Anderson Thomas B. Winmill
Vice Chairman President
<PAGE>
Mutual Funds
Dollar Reserves
A high quality money market fund investing in U.S. Government
securities. Income is generally free from state income and intangible personal
property taxes. Free, unlimited check writing with only a $250 minimum per
check.
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.
Special Equities Fund
Invests aggressively for maximum capital appreciation.
U.S. and Overseas Fund
Invests worldwide for the highest possible total return.
Closed-end investment companies
Global Income Fund (symbol: GIF)
Investing for a high level of income from a global portfolio of
primarily investment grade fixed income securities.
Tuxis Corporation (symbol: TUX)
Investing for an attractive level of long term return on an after
tax basis, with at least 50% of total assets in municipal securities and the
balance in selected growth stocks.
U.S. Government Securities Fund (symbol: BXL)
Invests for a high level of current income, liquidity, safety of
principal by investing primarily in U.S. Government securities, and may invest
up to 35% of its total assets in common stocks and other equity securities.
Call toll-free 1-888-503-FUND (3863) or visit www.mutualfunds.net for a
prospectus containing more complete information, including charges and expenses.
Please read it carefully before you invest or send money.
Total Return Performance. For periods ended 12/31/98, Bull & Bear Gold
Investors' total return for one year was a negative 32.21 %, average annual
total return for the past five years was a negative 23.90%, and for the past ten
years was a negative 9.61%. 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 make purchases when prices are low.
<PAGE>
BULL & BEAR GOLD INVESTORS LTD.
Schedule of Portfolio Investments - December 31, 1998
Shares Market Value
- ------ ------------
COMMON STOCKS AND WARRANTS (97.8%)
North America (69.1%)
170,000 Alta Gold Co.* $260,313
1,000 Aluminum Company of America 74,563
10,000 ASARCO Inc. 150,625
12,150 Barrick Gold Corp. 236,925
32,650 Cambior Inc. 161,209
2,600 Continental Materials Corp.* 94,900
18,100 Dallas Gold and Silver Exchange, Inc. 69,006
10,000 Engelhard Corp. 195,000
10,300 Euro-Nevada Mining Corp. 168,191
4,000 Finlay Enterprises, Inc.* 40,500
15,000 Freeport-McMoRan Copper & Gold, Inc.B 145,312
70,500 Golden Cycle Gold Corp.* (2) 484,687
22,400 Homestake Mining Company 205,800
80,000 Kenrich Mining Corp. Units* 10,451
5,000 LeaRonal, Inc. 169,375
10,400 Mail-Well, Inc.* 118,950
2,000 Mine Safety Appliances Co. 142,000
5,000 Mining Services International Corp. 26,875
5,000 Mueller Industries, Inc.* 101,562
5,300 Navistar International Corp. 151,050
19,999 Newmont Mining Corp. 361,232
10,000 OroAmerica, Inc.* 98,750
333,333 Oxus Resources Corp. Units (1)* 195,000
3,000 Phelps Dodge Corp. 152,625
15,000 The Pioneer Group, Inc. 296,250
17,350 Placer Dome Inc. 199,525
6,400 Reliance Steel & Aluminum Co. 176,800
100,000 Rio Narcea Gold Mines, Ltd.* 166,558
10,000 RTI International Metals, Inc. 140,000
4,500 World Fuel Services Corp. 48,375
4,842,409
Australia (7.5%)
190,000 Delta Gold NL ADR 249,375
49,820 Great Central Mines Ltd. ADR 107,424
95,000 Resolute Limited 66,806
34,000 WMC Limited 102,292
525,897
Ghana (5.4%)
40,000 Ashanti Goldfields Co. Ltd. 375,000
Mexico (5.3%)
125,000 Industrias Penoles S.A. 373,549
South Africa (10.5%)
6,800 Anglo American Corp. of South Africa Ltd. ADR 279,375
7,500 AngloGold Ltd. 146,719
20,000 Gold Fields Ltd.* 107,500
96,000 Randfontein Estates Ltd. ADR 204,000
737,594
Total Common Stocks and Warrants (cost: $8,877,448) 6,854,449
PREFERRED STOCK (1.8%)
5,100 Freeport-McMoRan Copper & Gold, Inc. Preferred Series C 62,794
5,400 Freeport-McMoRan Copper & Gold, Inc. Preferred Series D 63,113
Total Preferred Stock (cost: $196,195) 125,907
Par Value
SHORT-TERM INVESTMENTS (0.4%)
$30,000 U.S. Treasury Bill, due 1/21/99 (cost: $29,924) 29,924
Total Investments (cost: $9,103,567) (100.0%) $7,010,280
* Indicates non-income producing security.
(1) Security is not publicly traded (note 4).
(2) Affiliated company.
See accompanying notes to financial statements.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1998
ASSETS:
Investment at market value
(cost: $9,103,567) (note 1) ............................ $7,010,280
Foreign currencies net assets ......................................... 18,299
Receivables:
Fund shares sold ................................................... 277,725
Dividends ............................................................ 7,845
Other assets ........................................................... 3,058
Total assets ................................. 7,317,207
LIABILITIES:
Payables:
Demand note payable to bank (note 5) ................................ 935,158
Fund shares redeemed ................................................. 34,929
Forward currency contract (note 4) ....................................... 83
Accrued expenses ........................................................ 47,450
Accrued management and distribution fees ................................. 6,353
Total liabilities ............................. 1,023,973
NET ASSETS: (applicable to 2,232,394 outstanding
shares: 500,000,000 shares of $.01 par value authorized) ......... $6,293,234
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($6,293,234 / 2,232,394) .............................................. $2.82
At December 31, 1998, net assets consisted of:
Paid-in capital ................................................. $20,984,733
Undistributed net realized loss on investments ................. (12,598,216)
Net unrealized depreciation on
investments and foreign currencies ........................... (2,093,283)
$6,293,234
STATEMENTS OF OPERATIONS
For the six months ended December 31, 1998 and
the year ended June 30, 1998
December 31, June 30,
1998 1998
INVESTMENT INCOME:
Dividends ................................... $ 61,996 $ 141,145
Interest ...................................... 5,516 20,053
Total investment income ....................... 67,512 61,198
EXPENSES:
Distribution (note 3) ........................ 35,585 111,870
Investment management
(note 3) ............................... 35,585 109,871
Interest (note 5) ............................ 13,265 33,835
Transfer agent ............................... 13,161 31,032
Shareholder administration (note 3) .......... 12,606 30,158
Professional (note 3) ........................ 13,517 29,779
Custodian .................................... 5,699 26,021
Registration (note 3) ........................ 11,864 25,814
Printing ..................................... 3,266 15,487
Directors .................................... 3,630 8,634
Other ........................................ 5,832 11,003
Total expenses ........................... 154,010 433,504
Fee reductions (note 4) .................... (580) (7,947)
Net expenses ........................... 153,430 425,557
Net investment loss ................. (85,918) (264,359)
REALIZED AND UNREALIZED
GAIN (LOSS) ON
INVESTMENTS, FOREIGN
CURRENCIES AND FUTURES:
Net realized gain from foreign
currency and futures
transactions .............................. 22,683 127,639
Net realized loss from security
transactions .......................... (1,644,546) (11,052,895)
Unrealized appreciation
(depreciation) of
investments and foreign
currencies during the period ............. 210,016) 4,613,405
Net realized and unrealized
loss on investments,
foreign currencies and
futures .......................... (1,831,879) (6,311,851)
Net decrease in net assets
resulting from operations ......... $(1,917,797) $(6,576,210)
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
For the six months ended December 31, 1998 and the Years Ended June 30, 1998 and
1997
December 31, June 30, June 30,
1998 1998 1997
OPERATIONS:
<S> <C> <C> <C>
Net investment loss ....................................... $ (85,918) $ (264,359) $ (494,487)
Net realized gain (loss) from foreign
currency and futures transactions .......................... 22,683 127,639 (211,090)
Net realized gain (loss) from security transactions ........(1,644,546) (11,052,895) 3,146,892
Unrealized appreciation (depreciation) of investments
and foreign currencies during the period ................. (210,016) 4,613,405 (12,311,707)
Net decrease in net assets resulting from operations .... (1,917,797) (6,576,210) (9,870,392)
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net realized gains
($0.41 and $2.27 per share, respectively) ................ _ (835,640) (4,153,125)
CAPITAL SHARE TRANSACTIONS:
Change in net assets resulting from
capital share transactions (a) ........................... (113,097) 519,320 1,751,181
Total decrease in net assets ............................. (2,030,894) (6,892,530) (12,272,336)
NET ASSETS
Beginning of period ........................................ 8,324,128 15,216,658 27,488,994
End of period (including accumulated deficit in net investment
income of $0, $3, 506 and $3,266, respectively) ........ $6,293,234 $8,324,128 $15,216,658
</TABLE>
<TABLE>
<CAPTION>
(a) Transactions in capital shares were as follows:
December 31, 1998 June 30, 1998 June 30, 1997
Shares Value Shares Value Shares Value
<S> <C> <C> <C> <C> <C> <C>
Shares sold ....................... 332,400 $1,002,041 808,491 $3,962,860 707,565 $8,366,721
Shares issued in reinvestment
of distributions ................ _ _ 193,827 783,480 375,803 3,855,738
Shares redeemed ...................(371,213) (1,115,138) (861,998) (4,227,020) (912,837) (10,471,278)
Net increase (decrease) ........... (38,813) ($113,097) 140,320 $519,320 170,531 $1,751,181
</TABLE>
Notes to Financial Statements
(1) The Fund is a Maryland corporation 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 primarily 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, as set forth in its prospectus. Income is the secondary objective. On
March 4, 1998, the Board of Directors of the Fund approved a change in the
fiscal year end to December 31. Previously, the fiscal year end was June 30. 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. Futures contracts are marked to market daily and the
variation margin is recorded as an unrealized gain or loss. When a contract is
closed, a realized gain or loss is recorded equal to the difference between the
opening and closing value of the contract. Forward contracts are marked to
market daily and the change in market value is recorded by the Fund as an
unrealized gain or loss. When a contract is closed, the Fund records a realized
gain or loss equal to the difference between the value of the contract at the
time it was opened and the value at the time it was closed. The Fund could be
exposed to risk if the counterparties are unable to meet the terms of the
contracts. 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 accordance with income
tax regulations. 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. At December 31, 1998, the
Fund had an unused capital loss carryforward of approximately $12,598,200 of
which $3,474,200 and $9,124,000 expire in 2005 and 2006, respectively. Based
upon Federal income tax cost of $9,103,567, gross unrealized appreciation and
gross unrealized depreciation were $78,654 and $2,171,941, respectively at
December 31, 1998. Distributions paid to shareholders 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.
<PAGE>
(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 agreed to waive all or part of its fee or
reimburse the Fund monthly if and to the extent the aggregate operating expenses
of the Fund exceed the most restrictive limit imposed by any state in which
shares of the Fund are qualified for sale, although currently the Fund is not
subject to any such limits. Pursuant to the Investment Management Agreement, the
Investment Manager retained Lion Resource Management Limited (the "Subadviser")
regarding portfolio investments. Pursuant to the Subadvisory agreement which
terminated on August 30, 1997, the Subadviser advised and consulted with the
Investment Manager regarding the selection, clearing and safekeeping of the
Fund's portfolio investments and assisted in pricing and generally monitoring
such investments. The Subadviser also provided 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, paid 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 $1,894 for providing certain
administrative and accounting services at cost for the six months ended December
31, 1998. During the six months ended December 31, 1998, the Fund paid $2,709 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 $12,606 for
shareholder administration services which it provided to the Fund at cost for
the six months ended December 31, 1998.
(4) The Fund has entered into an arrangement with its custodian whereby interest
earned on uninvested cash balances was used to offset a portion of the Fund's
expenses. During the period, the Fund's custodian fees were reduced by $580,
under such arrangements. Purchases and proceeds of sales of securities other
than short term notes and bullion aggregated $2,679,812 and $2,831,916,
respectively, for the six months ended December 31, 1998. On December 31, 1998,
the Fund held an investment which is not publicly traded and is 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 such investment are as follows:
Units Investment Date of Acquisition Cost Value
333,333 Oxus Resources Corp. Units 8/15/96 $300,000 $195,000
At December 31, 1998, the total value of such investment represented 2.82% of
net assets.
A forward currency contract is an obligation to purchase or sell a specific
currency for an agreed-upon price at a future date. When the Fund purchases or
sells foreign securities it customarily enters into a forward currency contract
to minimize foreign exchange risk between the trade date and the settlement date
of such transactions. The Fund could be exposed to risk if counterparties to the
contracts are unable to meet the terms of their contracts. The Fund had the
following forward currency contracts outstanding at December 31, 1998:
<TABLE>
<CAPTION>
Contracts to Sell Foreign Currency In Exchange for Settlement Date Unrealized Loss
<S> <C> <C> <C>
181,250 Mexican Pesos U.S. $18,216 1/4/99 $(83)
</TABLE>
(5) The Fund has a committed bank line of credit. At December 31, 1998, the
balance outstanding was $935,158 and the interest rate was equal to the Federal
Reserve Funds Rate plus 1.00 percentage point. For the six months ended December
31, 1998, the weighted average interest rate was 6.12% based on the balances
outstanding during the year and the weighted average amount outstanding was
$417,872.
<PAGE>
<TABLE>
<CAPTION>
FINANCIAL HIGHLIGHTS
Six
Months Ended
December 31,
PER SHARE DATA * 1998* 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
Net asset value at beginning of period ....... $3.67 $7.14 $14.02 $13.13 $15.71 $16.98
Income from investment operations:
Net investment loss ........................ -0.04 -0.12 -0.25 -0.22 _ -0.11
Net realized and unrealized gain
(loss) on investments ................... -0.81 -2.94 -4.36 2.72 -1.13 -1.05
Total from investment operations .......... -0.85 -3.06 -4.61 2.5 -1.13 -1.16
Less distributions:
Distributions from net realized
gains on investments .................... - -0.41 -2.27 -1.61 -1.45 -0.11
Total distributions ....................... - -0.41 -2.27 -1.61 -1.45 -0.11
Net asset value at end of period ............. $2.82 $3.67 $7.14 $14.02 $13.13 $15.71
TOTAL RETURN ................................ -23.16% -43.45% -37.81% 21.01% -8.01% -6.92%
RATIOS/SUPPLEMENTAL DATA
Net assets at end of period
(000's omitted) .......................... $6,293 $8,234 $15,217 $27,485 $29,007 36603
Ratio of expenses to average net
assets (a) (b) ........................... 4.32%** 3.88% 2.94% 3.05% 2.93% 2.57%
Ratio of net investment income (loss)
to averagenet assets ..................... (2.50)%** -2.40% -2.06% -1.61% 0.01% -0.68%
Portfolio turnover rate ..................... 36% 136% 37% 61% 158% 129%
<FN>
* Per share net investment loss and unrealized gain (loss) on investments have
been computed using the average number of shares outstanding. These computations
had no effect on net asset value per share.
**Annualized.
(a)Ratios excluding interest expense were 3.96%**, 3.57%, 2.77%, 2.93%, 2.82%,
and 2.54%, for the six months ending December 31, 1998 and the years ending June
30, 1998, 1997, 1996, 1995, and 1994, respectively. (b)Ratio after custodian
credits was 4.30%** and 3.82% for the six months ending December 31, 1998 and
the year ended June 30, 1998, respectively.
</FN>
</TABLE>
<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
December 31, 1998, and the related statements of operations, the statements of
changes in net assets, and the financial highlights for each of the periods
indicated thereon. 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
audits.
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
December 31, 1998, by correspondence with the custodian. 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 December 31, 1998, the results of its operations,
the changes in its net assets, and the financial highlights for the periods
presented, in conformity with generally accepted accounting principles.
TAIT, WELLER & BAKER
Philadelphia, Pennsylvania
January 15, 1999
Total Return Performance Graphs
Bull & Bear Gold Investors Ltd. ("Fund")
Morningstar Specialty Fund-Precious Metals
Average ("PMFA")
Standard & Poor's 500 Stock Index ("S&P 500")
The performance graph shows returns 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 of 22 funds from 1/1/89 to 12/31/98.
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. Past performance is not predictive of future performance.
[Graph omitted]
For Fund prospectuses and other
investment information, call toll-free
1-888-503-FUND
1-888-503-3863
For shareholder services by
Investor Access, call toll-free
1-888-503-VOICE
1-888-503-8642
