This is what American Growth Fund has done for its investors over
the last 40.5 years.
$699,484** Total value on 1/31/99 with both dividends and Capital
Gains reinvested.
**The figures in this brochure reflects the performance of the
Fund's Class D shares. On 3/1/96, the Fund adopted a multi-class
distribution arrangement to issue additional classes of shares,
designated as Class A, Class B and Class C shares. Shares existing
prior to 3/1/96 became Class D shares. Class A and Class D shares
are subject to a maximum front-end sales charge of 5.75%,
Class B shares are subject to a maximum contingent deferred sales
charge of 5% and Class C shares are subject to a 1% contingent
deferred sales charge within the first year of purchase. The Fund
may incur 12b-1 expenses up to an annual maximum of .30 of 1%
on its average daily net assets of its Class A shares, 1% of its
average daily net assets of its Class B shares, and 1% of its
average
daily net assets of its Class C shares. Class D shares have no
12b-1 fees. Performance figures for Class D shares include the
5.75%
initial sales charge and assume the reinvestment of income
dividends and capital gain distributions. Performance quoted
represents
past performance. The investment return and principal value of an
investment will fluctuate so that the investor's shares, when
redeemed, may be worth more or less than their original cost. This
material must be preceeded or accompanied by a current
prospectus. If you have not received, or need a current prospectus,
please feel free to call for one. Please read the prospectus
carefully before investing.
Period ending 12/31/98.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
<C> <C> <C> <C>
<C>
Class D Class D1 Class A
Class A Class B Class B Class C
Class C
without load with load without load
with load without load with load without load
with load
1 year 6.1% 0.0% 5.8%
-0.3%2 5.0% -0.01%3 5.1%
4.1%4
5 years 9.8% 8.5%
10 years 12.4% 11.7%
15 years 10.2% 9.8%
40 years 10.9% 10.7%
Inception date: 3/1/96 (not annualized) 26.7%
19.4%5 23.8% 19.8%6 23.9%
23.9%
</TABLE>
1 Includes a 5.75% sales charge based on a $10,000 initual purchase
2 Includes a 5.75% initial sales charge at the time of purchase
3 Includes a 5% contingent deferred sales charge at the time of
redemption
4 Includes a 1% contingent defered sales charge at the time of
redemption
5 Includes a 5.75% initial sales charge at the time of purchase
6 Includes a 4% contingent deferred sales charge at the time of
redemption
Distributor: American Growth Fund Sponsors, Inc. 110
Sixteenth Street, Suite 1400, Denver, CO 80202, Phone (800)
525-
2406.
01/99
<PAGE>
Annual Report
For the Year Ended
July 31, 1996<PAGE>
To Our Investors
Dear Fellow Shareholder:
In the last six months our Fund has grown 11% while the Dow Jones
Industrial Average has grown only 5%.
The reason for the growth is because several of our major
industries have been doing very well.
Our Fund's portfolio has been positioned to take advantage of what
we perceive to be opportunities in the
forthcoming market. A large percentage of the portfolio is now
invested in computers and peripherals,
commercial banking and household products.
This may be a good time to remind our shareholders that we manage
the Fund with two objectives in
mind...to make money and then not lose the money we've made.
That's the way we have managed
American Growth Fund for over 40.5 years and plan to in the future.
Perhaps, all things considered, this might be an appropriate time
to add to your American Growth Fund
account, or investing in one of our IRA accounts. Our toll free
number is (800) 525-2406 or give your
securities representative a call. I invite your comments,
questions and suggestions. Please feel free to call or
write to me.
American Growth Fund wishes you and yours A Good Future!
Sincerely,
Robert Brody
President & Shareholder
<PAGE> <PAGE>
How American Growth Fund Has Its Shareowners' Money Invested
STATEMENT OF INVESTMENTS
January 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Market
Description of Security
Shares
Value
COMMON STOCKS
<S>
<C>
<C>
Computer &
Peripherals Industry 28.16%
International Business Machines. . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 64,000
$11,728,000
(The world's largest supplier of advanced information processing
technology.)
Dell Computer* . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 85,000
8,500,000
(Makes notebook and desktop computers, servers & workstations
compatible with industry standards.)
Cisco Systems* . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 70,000
7,809,375
(The leading supplier of high-performance inter-networking
products.)
Hewlett Packard Company. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 90,000
7,053,750
(A designer and manufacturer of precision electronic products.)
35,091,125
Commercial Bank Industry 15.96%
City National Corp.. . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 197,800
6,836,462
(Owns City National Bank, largest independent bank in southern
California.)
SouthTrust Corp. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 135,000
5,011,875
(The 33rd largest bank in the U.S.)
Royal Bank of Canada . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 70,000
3,609,375
(Canada's largest bank.)
Citigroup Inc. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 40,000
2,242,500
(A diversified financial services company.)
BankAmerica Corp. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 32,624
2,181,730
(The 3rd largest bank in the United States.)
19,881,942
Household
Products Industry 12.38%
Clorox Company . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 60,000
7,507,500
(A producer of household laundry & cleaning products, also
insecticides, cat litter, dressings, sauces.)
Procter & Gamble Company . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 50,000
4,543,750
(#1 manufacturer of household cleaning products in the U.S. and
the world's largest advertiser.)
Colgate Palmolive Company. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 42,000
3,378,375
(2nd largest domestic maker of detergents, toiletries and other
household products.)
15,429,625
</TABLE>
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Market
Description of Security
Shares
Value
<S>
<C>
<C>
Semiconductor Industry 10.30%
Intel Corp.. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 49,000
$ 6,905,937
(A leading manufacturer of integrated circuits.)
Texas Instruments Inc. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 60,000
5,932,500
(Manufactures electronic products based on its semiconductor
technology.)
12,838,437
Telecommunications Equipment Industry 5.87%
Lucent Technologies Inc. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 65,000
7,316,563
(One of the world's leading designers, developers and
manufacturers of telecommunications systems,
software and products.)
Electronic Equipment Industry 5.05%
General Electric Company . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 60,000
6,292,500
(One of the largest and most diversified industrial companies in
the world.)
Airline Industry 4.10%
UAL Corporation* . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 82,000
5,104,500
(The largest domestic carrier in passenger revenue. Serves 152
airports in 30 countries.)
Insurance Industry 2.80%
Equitable Companies, Inc. (The). . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 50,000
3,487,500
(Parent holding company of the Equitable Life Assurance society
of the United States.)
Drug Industry 2.05%
Amgen Inc.* . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 20,000
2,556,250
(Utilizes biotechnology to develop human pharmaceutical
products.)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Market
Description of Security
Shares
Value
<S>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . <C> <C>
Chemical Industry 1.53%
Solutia, Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 100,000
$ 1,912,500
(The twentieth largest chemical company in the U.S.)
Auto Industry 1.44%
General Motors Corporation . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 20,000
1,795,000
(The world's largest auto manufacturer.)
Machine Industry 1.04%
Caterpillar, Inc.. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 30,000
1,299,375
(The world's largest producer of earthmoving equipment.)
Building
Materials Industry 0.79%
Ameron International Corporation . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 25,500
983,344
(The largest supplier of high-performance marine and offshore
coatings in the U.S.)
Computer
Software and Services Industry 0.78%
Paychex Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 20,000
973,750
(Providing computerized payroll accounting services and tax
return filing services.)
Total Common Stocks (cost $78,817,502) (92.25%). . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
114,962,411
U.S.
GOVERNMENT OBLIGATIONS 7.48%
U.S. Treasury Bond, 6.00%, 02/15/26 . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 8,488,000
9,316,938
Total U.S. Government Obligations (cost $8,680,766). . . . . . . .
. . . . . . . . . . . . . . . . . . . .
9,316,938
Total Investments, at Value (cost $87,498,268) . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 99.73%
124,279,349
Cash and Receivables, Less Liabilities . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 0.27%
340,562
Net Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . 100.00%
$124,619,911
</TABLE>
<PAGE>
Financial Statements
AMERICAN GROWTH FUND, INC.
STATEMENT OF ASSETS
AND LIABILITIES, JANUARY 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
<S>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . .
<C>
ASSETS:
Investments, at value (cost $87,498,268)-see accompanying
statement . . . . . . . . . . . . . . . . . . . . . . . . . . .
$124,279,349
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
159,524
Receivables:
Shares of beneficial interest sold . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
130,051
Dividends. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
99,309
Interest . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
235,265
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
124,903,498
LIABILITIES:
Shares of beneficial interest redeemed. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
283,587
NET ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$124,619,911
COMPOSITION OF NET ASSETS:
Paid-in capital . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $
91,485,634
Over distributed net investment income. . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(464,007)
Accumulated net realized loss from investment transactions. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3,182,798)
Net unrealized appreciation of investments. . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36,781,082
Net assets. . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$124,619,911
NET ASSET VALUE PER SHARE:
Class A Shares:
Net asset value and redemption price per share (based on net
assets
of $13,336,106 and 1,279,945 shares of beneficial interest
outstanding). . . . . . . . . . . . . . . . . . . . . . . .
$10.42
Maximum offering price per share (net asset value plus sales
charge of
5.75% of offering price) . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.06
Class B Shares:
Net asset value, redemption price and offering price per
share (based
on net assets of $15,956,764 and 1,545,232 shares of
beneficial interest outstanding). . . . . . . . . . . . . . . . .
$10.33
Class C Shares:
Net asset value, redemption price and offering price per
share (based
on net assets of $4,942,211 and 479,307 shares of beneficial
interest outstanding) . . . . . . . . . . . . . . . . . .
$10.31
Class D Shares:
Net asset value and redemption price per share (based on net
assets of
$90,384,831 and 8,652,601 shares of beneficial interest
outstanding) . . . . . . . . . . . . . . . . . . . . . . . . .
$10.45
Maximum offering price per share (net asset value plus sales
charge of
5.75% of offering price) . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$11.09
</TABLE>
See accompanying notes to financial statements.<PAGE>
<PAGE>
Financial Statements
AMERICAN GROWTH FUND, INC.
STATEMENT OF OPERATIONS
FOR THE 6 MONTHS ENDED JANUARY 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
<S>. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
<C>
INVESTMENT INCOME:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . $
828,294
Dividends (net of $6,296 foreign withholding tax). . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
433,192
Total investment income . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,261,486
EXPENSES:
Investment advisory fees (Note 5). . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
471,732
Administration expenses (Note 5) . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
216,524
Transfer agent, shareholder servicing and data processing
fees (Note 4). . . . . . . . . . . . . . . . . . . . . . . .
110,638
Custodian fees (Note 4). . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63,524
Professional fees. . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23,777
Registration and filing fees:
Class A . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,416
Class B . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,854
Class C . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
839
Class D . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16,805
Shareholder reports. . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8,756
Distribution and service fees:
Class A . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15,537
Class B . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73,577
Class C . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22,011
Directors fees . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2,400
Other expenses . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31,526
Total expenses. . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,062,916
Less expenses paid indirectly (Note 4) . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
( 21,601)
Net expenses. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,041,315
Net Investment Income. . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
220,171
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
331,171
Net change in unrealized appreciation on investments . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,390,926
Net realized and unrealized gain . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11,722,097
Net Increase in Net Assets Resulting From Operations . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . $
11,942,268
</TABLE>
See accompanying notes to financial statements.<PAGE>
<PAGE>
Financial Statements
AMERICAN GROWTH FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months
Ended Year Eanded
January 31,
1999 July 31, 1998
(Unaudited)
<S>
<C>
<C>
OPERATIONS:
Net investment income . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . $ 220,171 $
637,948
Net realized gain (loss). . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 331,171
(3,209,919)
Net change in unrealized appreciation or depreciation . . . . .
. . . . . . . . . . . . . . . 11,390,926
(8,201,493)
Net increase (decrease) in net assets resulting from
operations. . . . . . . . . . . . . . 11,942,268
(10,773,464)
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Dividends from net investment income:
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . (105,260)
(75,567)
Class B . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .(15,801)
(14,141) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . .
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . .(9,620)
(3,850)
Class D . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . (884,573)
(790,735)
Distributions from net realized gain:
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 0
(1,120,917)
Class B . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 0
(1,258,568)
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . 0
(342,696)
Class D . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 0
(8,796,922)
BENEFICIAL INTEREST TRANSACTIONS:
Net increase (decrease) in net assets resulting from beneficial
interest transactions(Note 2):
Class A . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . (2,064,973)
5,962,986
Class B . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . (1,030,661)
7,163,360
Class C . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . (8,995)
2,200,744
Class D . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . (6,842,931)
(8,137,343)
NET ASSETS:
Total increase (decrease) . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 979,454
(15,987,113)
Beginning of period . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . 123,640,457
139,627,570
End of period (including (over)/undistributed net investment
income of $(464,007) and $331,075 respectively) . . . . . . . .
. . . . . . . . . . . . . . . $124,619,911
$123,640,457
</TABLE>
See notes to financial statements.
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class A
Six Months
Ended Year Ended July 31,
January 31,
1999
(Unaudited)
1999 1998 1997 19961
<S>
<C> <C> <C> <C>
Per Share Operating Data:
Net Asset Value,
Beginning of Period. . . . . . . . . . . . . . . . . . . . . .$9.49
$11.30 $ 8.84 $ 9.21
Income (loss) from investment operations:
Net investment income. . . . . . . . . . . . . . . . . . . . .
0.017 0.047 0.147 -7
Net realized and unrealized gain (loss). . . . . . . . . . . . 1.00
(0.90) 2.83 (0.37)
Total income (loss) from investment operations . . . . . . . . 1.01
(0.86) 2.97 (0.37)
Dividends and distributions to shareholders:
Dividends from net investment income . . . . . . . . . . . .
(0.08)8 (0.06)8 (0.12)8 -8
Distributions from net realized gain . . . . . . . . . . . 0.00
(0.89) (0.39) -
Total dividends and distributions
to shareholders. . . . . . . . . . . . . . . . . . . . . . . (0.08)
(0.95) (0.51) -
Net Asset Value, End of Period . . . . . . . . . . . . . . .$ 10.42
$ 9.49 $ 11.30 $ 8.84
Total Return at Net Asset Value2 . . . . . . . . . . . . . . .
13.4% (7.6)% 34.6% (4.0)%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) . . . . . . . . . .$13,336
$14,246 $10,536 $3,838
Ratio to average net assets:
Net investment income (loss) . . . . . . . . . . . . . . . .
.0.32%6 0.42% 1.28% 0.13%6
Expenses3. . . . . . . . . . . . . . . . . . . . . . . . . .
.1.91%6 1.77% 1.76% 2.06%6
Portfolio Turnover Rate4 . . . . . . . . . . . . . . . . . .
.62.2%6 103.5% 106.2% 163.1%
Average Brokerage Commission Rate5 . . . . . . . . . . . . .
$0.0605 $0.0577 $0.0578 $0.0561
</TABLE>
1. For the period from March 1, 1996 (inception of offering) to
July 31, 1996.
2. Assumes a hypothetical initial investment on the business day
before the first day of the fiscal period (or inception of
offering) with all
dividends and distributions reinvested in
additional shares on the reinvestment date and redemption at the
net asset value
calculated on the last business day of the fiscal period.
Sales charges are not reflected in total returns. Total returns are
not
annualized for periods of less than one full year.
3. Beginning in fiscal 1996, the expense ratio reflects the effect
of expenses paid indirectly by the Fund. Prior year expenses have
not
been adjusted.
4. The lesser of purchases and sales of portfolio securities for a
period, divided by the monthly average of the market value of
securities
owned during the period. Securities with a maturity
or expiration date at the time of acquisition of one year or less
are
excluded from the calculation. Purchases and sales of
investment securities (other than short-term securities) for the
period ended
January 31, 1999, aggregated $32,802,141 and $48,775,576,
respectively.
5. Total brokerage commissions paid on applicable purchases and
sales of investment securities for the period divided by the total
number of related shares purchased and sold.
6. Annualized.
7. Net investment income per share is based upon relative daily net
asset values.
8. Distributions from net investment income per share are based
upon relative net asset values as of the business day following the
distribution record date.
See accompanying notes to financial statements.
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class B
Six Months
Ended Year Ended July 31,
January 31,
1999
(Unaudited)
1999 1998 1997 19961
<S>
<C> <C> <C> <C>
Per Share Operating Data:
Net Asset Value,
Beginning of Period. . . . . . . . . . . . . . . . . . . . . .$9.37
$11.19 $ 8.80 $ 9.21
Income (loss) from investment operations:
Net investment income (loss) . . . . . . . . . . . . . . . .
(0.02)7 (0.02)7 0.077 (0.01)7
Net realized and unrealized gain (loss). . . . . . . . . . .. 0.99
(0.90) 2.79 (0.40)
Total income (loss) from investment operations.. . . . . . . .0.97
(0.92) 2.86 (0.41)
Dividends and distributions to shareholders:
Dividends from net investment income . . . . . . . . . . . .
(0.01)8 (0.01)8 (0.09)8 -8
Distributions from net realized gain . . . . . . . . . . . 0.00
(0.89) (0.39) -
Total dividends and distributions
to shareholders. . . . . . . . . . . . . . . . . . . . . . . (0.01)
(0.90) (0.48) -
Net Asset Value, End of Period . . . . . . . . . . . . . . . $10.33
$ 9.37 $ 11.18 $ 8.80
Total Return at Net Asset Value2 . . . . . . . . . . . . . . .
12.6% (8.2)% 33.5% (4.5)%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) . . . . . . . . . .$15,957
$15,533 $10,962 $3,417
Ratio to average net assets:
Net investment income (loss) . . . . . . . . . . . . . . .
.(0.43)%6 (0.32)% 0.49% (0.52)%6
Expenses3. . . . . . . . . . . . . . . . . . . . . . . . . .
.2.65%6 2.52% 2.46% 2.81%6
Portfolio Turnover Rate4 . . . . . . . . . . . . . . . . . .
.62.2%6 103.5% 106.2% 163.1%
Average Brokerage Commission Rate5 . . . . . . . . . . . . .
$0.0605 $0.0577 $0.0578 $0.0561
</TABLE>
1. For the period from March 1, 1996 (inception of offering) to
July 31, 1996.
2. Assumes a hypothetical initial investment on the business day
before the first day of the fiscal period (or inception of
offering) with all
dividends and distributions reinvested in
additional shares on the reinvestment date and redemption at the
net asset value
calculated on the last business day of the fiscal period.
Sales charges are not reflected in total returns. Total returns are
not
annualized for periods of less than one full year.
3. Beginning in fiscal 1996, the expense ratio reflects the effect
of expenses paid indirectly by the Fund. Prior year expenses have
not
been adjusted.
4. The lesser of purchases and sales of portfolio securities for a
period, divided by the monthly average of the market value of
securities
owned during the period. Securities with a maturity
or expiration date at the time of acquisition of one year or less
are
excluded from the calculation. Purchases and sales of
investment securities (other than short-term securities) for the
period ended
January 31, 1999, aggregated $32,802,141 and $48,775,576,
respectively.
5. Total brokerage commissions paid on applicable purchases and
sales of investment securities for the period divided by the total
number of related shares purchased and sold.
6. Annualized.
7. Net investment income per share is based upon relative daily net
asset values.
8. Distributions from net investment income per share are based
upon relative net asset values as of the business day following the
distribution record date.
See accompanying notes to financial statements.
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class C
Six Months
Ended Year Ended July 31,
January 31,
1999
(Unaudited)
1999 1998 1997 19961
<S>
<C> <C> <C> <C>
Per Share Operating Data:
Net Asset Value,
Beginning of Period. . . . . . . . . . . . . . . . . . . . . .$9.37
$11.19 $ 8.81 $ 9.21
Income (loss) from investment operations:
Net investment income. . . . . . . . . . . . . . . . . . . .
(0.02)7 (0.02)7 0.077 -7
Net realized and unrealized gain (loss). . . . . . . . . . .. 0.98
(0.90) 2.79 (0.40)
Total income (loss) from investment operations.. . . . . . . .0.96
(0.92) 2.86 (0.40)
Dividends and distributions to shareholders:
Dividends from net investment income . . . . . . . . . . . .
(0.02)8 (0.01)8 (0.09)8 -8
Distributions from net realized gain . . . . . . . . . . . 0.00
(0.89) (0.39) -
Total dividends and distributions
to shareholders. . . . . . . . . . . . . . . . . . . . . . .
.(0.02) (0.90) (0.48) -
Net Asset Value, End of Period . . . . . . . . . . . . . . . $10.31
$ 9.37 $ 11.19 $ 8.81
Total Return at Net Asset Value2 . . . . . . . . . . . . . . .
12.6% (8.2)% 33.6% (4.3)%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) . . . . . . . . . . $4,942
$4,498 $3,023 $367
Ratio to average net assets:
Net investment income (loss)5. . . . . . . . . . . . . . .
.(0.44)%6 (0.31)% 0.55% (0.63)%6
Expenses3. . . . . . . . . . . . . . . . . . . . . . . . . .
.2.64%6 2.52% 2.50% 2.97%6
Portfolio Turnover Rate4 . . . . . . . . . . . . . . . . . .
.62.2%6 103.5% 106.2% 163.1%
Average Brokerage Commission Rate5 . . . . . . . . . . . . .
$0.0605 $0.0577 $0.0578 $0.0561
</TABLE>
1. For the period from March 1, 1996 (inception of offering) to
July 31, 1996.
2. Assumes a hypothetical initial investment on the business day
before the first day of the fiscal period (or inception of
offering) with all
dividends and distributions reinvested in
additional shares on the reinvestment date and redemption at the
net asset value
calculated on the last business day of the fiscal period.
Sales charges are not reflected in total returns. Total returns are
not
annualized for periods of less than one full year.
3. Beginning in fiscal 1996, the expense ratio reflects the effect
of expenses paid indirectly by the Fund. Prior year expenses have
not
been adjusted.
4. The lesser of purchases and sales of portfolio securities for a
period, divided by the monthly average of the market value of
securities
owned during the period. Securities with a maturity
or expiration date at the time of acquisition of one year or less
are
excluded from the calculation. Purchases and sales of
investment securities (other than short-term securities) for the
period ended
January 31, 1999, aggregated $32,802,141 and $48,775,576,
respectively.
5. Total brokerage commissions paid on applicable purchases and
sales of investment securities for the period divided by the total
number of related shares purchased and sold.
6. Annualized.
7. Net investment income per share is based upon relative daily net
asset values.
8. Distributions from net investment income per share are based
upon relative net asset values as of the business day following the
distribution record date.
See accompanying notes to financial statements.<PAGE>
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Class D
Six Months
Ended Year Ended July 31,
January 31,
1999
(Unaudited)
1999 1998 1997 1996 1995
1994
<S>
<C> <C> <C> <C> <C>
<C>
Per Share Operating Data:
Net Asset Value,
Beginning of Period. . . . . . . . . . . . . . . . . . . . . .$9.53
$11.33 $ 8.85 $ 8.75 $ 9.34 $
9.39
Income (loss) from investment operations:
Net investment income. . . . . . . . . . . . . . . . . . . . .
0.035 0.075 0.175 0.035 0.21
0.03
Net realized and unrealized gain (loss). . . . . . . . . . . . 0.99
(0.90) 2.82 0.39 0.88
1.00
Total income (loss) from investment operations . . . . . . . . 1.02
(0.83) 2.99 0.42 1.09
1.03
Dividends and distributions to shareholders:
Dividends from net investment income . . . . . . . . . . . .
(0.10)6 (0.08)6 (0.12)6 (0.12)6 (0.12)
(0.05)
Distributions from net realized gain . . . . . . . . . . . 0.00
(0.89) (0.39) (0.20) (1.56)
(1.03)
Total dividends and distributions
to shareholders. . . . . . . . . . . . . . . . . . . . . . .
.(0.10) (0.97) (0.51) (0.32) (1.68)
(1.08)
Net Asset Value, End of Period . . . . . . . . . . . . . . . $10.45
$ 9.53 $ 11.33 $ 8.85 $ 8.75 $
9.34
Total Return at Net Asset Value1 . . . . . . . . . . . . . . .
13.6% (7.4)% 35.1% 4.8% 15.2%
11.1%
Ratios/Supplemental Data:
Net assets, end of period (in thousands) . . . . . . . . . .$90,385
$89,364 $115,106 $100,130 $90,538
$68,209
Ratio to average net assets:
Net investment income (loss) . . . . . . . . . . . . . . . .
.0.58%7 0.63% 1.71% 0.47% 1.91%
0.35%
Expenses2. . . . . . . . . . . . . . . . . . . . . . . . . .
.1.66%7 1.54% 1.55% 1.63% 1.45%
1.34%
Portfolio Turnover Rate3 . . . . . . . . . . . . . . . . . .
.62.2%7 103.5% 106.2% 163.1% 173.0%
87.2%
Average Brokerage Commission Rate4 . . . . . . . . . . . . .
$0.0605 $0.0577 $0.0578 $0.0561 -
-
</TABLE>
1. Assumes a hypothetical initial investment on the business day
before the first day of the fiscal period (or inception of
offering) with all
dividends and distributions reinvested in additional shares on
the reinvestment date and redemption at the net asset value
calculated
on the last business day of the fiscal period. Sales charges
are not reflected in total returns. Total returns are not
annualized for
periods of less than one full year.
2. Beginning in fiscal 1996, the expense ratio reflects the effect
of expenses paid indirectly by the fund. Prior year expenses have
not
been adjusted.
3. The lesser of purchases and sales of portfolio securities for a
period, divided by the monthly average of the market value of
securities
owned during the period. Purchases and sales of investment
securities (other than short-term securities) for the period ended
January
31, 1999, aggregated $32,802,141 and $48,775,576,
respectively.
4. Total brokerage commissions paid on applicable purchases and
sales of investment securities for the period divided by the total
number of related shares purchased and sold.
5. Net investment income per share is based upon relative daily net
asset values.
6. Distributions from net investment income per share are based
upon relative net asset values as of the business day following the
distribution record date.
7. Annualized.
See accompanying notes to financial statements.<PAGE>
<PAGE>
Notes to Financial Statements
1. Summary of Significant Accounting Policies
American Growth Fund, Inc. (the "Fund") is registered under
the Investment Company Act of 1940, as amended, as a
diversified, open-end management investment company. The
Fund's primary investment objective is to seek capital
appreciation. The Fund's investment advisor is Investment
Research Corporation (IRC). The Fund offers Class A, Class B,
Class C and Class D shares. Class D shares are available to
shareholders in existence prior to 3/1/96. Class A and Class D
shares are sold with a front-end sales charge. Class B and
Class C shares may be subject to a contingent deferred sales
charge. All classes of shares have identical rights to
earnings, assets and voting privileges, except that each class has
its
own distribution and/or service plan and expenses directly
attributable to that class and exclusive voting rights with respect
to matters affecting that class. Class B shares will
automatically convert to Class A shares seven years after date of
purchase. The following is a summary of significant accounting
policies consistently followed by the Fund.
Investment Valuation - Investment securities are valued at the
closing asked price as reported by the principal
securities exchange on which the security is traded. If no
sale is reported, or if the security is not traded on an exchange,
value is based on the average of the latest bid and asked
prices. Short-term debt securities having a remaining maturity of
60 days or less are valued at amortized cost, which
approximates market value.
Allocation of Income, Expenses, Gains and Losses - Income,
expenses (other than those attributable to a
specific class), gains and losses are allocated daily to each
class of shares based upon the relative proportion of net assets
represented by such class. Operating expenses directly
attributable to a specific class are charged against the operations
of
that class.
Federal Income Taxes - No provision for federal income or
excise taxes has been made because the Fund intends to
comply with provisions of the Internal Revenue Code
applicable to regulated investment companies and to distribute all
of
its taxable income to shareholders.
Classification of Distributions to Shareholders - The
character of distributions made during the year from net
investment income or net realized gains may differ from its
ultimate characterization for federal income tax purposes. Also,
due to timing of dividend distributions, the fiscal year in
which amounts are distributed may differ from the fiscal year in
which the income or realized gain was recorded by the Fund.
The Fund has available for federal income tax purposes an
unused capital loss carryover approximately $3,514,000 which
expires in 2007.
Other - Investment transactions are accounted for on the date
the investments are purchased or sold (trade date).
Dividend income and distributions to shareholders are recorded
on the ex-dividend date. Interest income is recorded on the
accrual basis. Realized gains and losses from investment
transactions and unrealized appreciation and depreciation of
investments are reported on an identified cost basis which
is the same basis used for federal income tax purposes.
Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases
and decreases in net assets from operations during the
reporting period. Actual results could differ from those estimates.
<PAGE>
<PAGE>
Notes to Financial Statements
2. Shares of Beneficial Interest - The Fund has authorized an
unlimited number of no par value shares of beneficial
interest of each class. Transactions in shares of beneficial
interest were as follows:
<TABLE>
<CAPTION>
Six Months
Ended January 31, 1999 Year Ended July 31,
1998
(Unaudited)
Shares
Amount Shares
Amount
<S> <C>
<C> <C> <C>
Class A:
Sold 172,432
$1,575,498 837,941 $
8,739,433
Dividends and distributions reinvested 10,544
98,900 124,601
1,193,679
Redeemed
(404,231) (3,739,371) (393,818)
(3,970,124)
Net increase (decrease)
(221,255) (2,064,973) 568,724
5,962,988
Class B:
Sold
102,014 926,722 843,318
8,810,905
Dividends and distributions reinvested
1,577 14,679 129,536
1,231,569
Redeemed
(216,539) (1,972,062) (294,805)
(2,879,144)
Net increase (decrease)
(112,948) (1,030,661) 678,049
7,163,360
Class C:
Sold
33,153 299,297 218,226
2,295,012
Dividends and distributions reinvested
782 7,274 35,910
341,141
Redeemed
(34,522) (315,566) (44,447)
(435,409)
Net Increase (decrease)
(587) (8,995) 209,689
2,200,744
Class D:
Sold 100,480
921,770 394,322
4,226,052
Dividends and distributions reinvested 85,582
805,335 969,644
9,308,601
Redeemed
(915,639) (8,570,036) (2,144,192)
(21,671,996)
Net increase (decrease)
(729,577) $(6,842,931) (708,226)
$ (8,137,343)
</TABLE>
3. Unrealized Gains and Losses on Investments
The identified tax cost basis of investments at January 31,
1999 was $87,498,268. Net unrealized appreciation on
investments of $39,393,461, based on identified tax cost as of
January 31, 1999, was comprised of gross appreciation of
$2,612,379 and gross depreciation of $36,781,082.
4. Fund Expenses Paid Indirectly
Fees for transfer agent/data processing services and custodian
services totaling $4,262 and $17,339, respectively, were
offset by earnings on cash balances maintained by the Fund at
the custodian financial institution. The Fund could have
invested the assets maintained at the institution in
income-producing assets if it had not agreed to a reduction in
fees.
5. Underwriting, Investment Advisory Contracts and Service Fees
Under the investment advisory contract with Investment
Research Corporation ('IRC'), the advisor receives annual
compensation for investment advice, computed and paid monthly,
equal to 1% of the first $30 million of average annual net
assets of the Fund
<PAGE>
Notes to Financial Statements
and 0.75% of such assets in excess of $30 million. The Fund
pays its own operating expenses. The advisor has agreed to
reimburse the Fund if total expenses exceed the most
restrictive limitation prescribed by any state in which the shares
of the
Fund are sold.
Class B and Class C shares are subject to annual service and
distribution fees of 0.25% and 0.75% of average daily net
assets, respectively. Class A shares are subject to annual
service and distribution fees of 0.25% and 0.05% of average daily
net assets, respectively.
For the six months ended January 31, 1999 commissions and
sales charges paid by investors on the purchase of Fund
shares totaled $115,272 of which $38,370 was retained by
American Growth Fund Sponsors, Inc. ("Sponsors"), an affiliated
broker/dealer which serves as the underwriter and distributor
of the Fund. Sales charges advanced to broker/dealers by
Sponsors on sales of the Fund's Class B and C shares totaled
$40,523. For the six months ended January 31, 1999,
Sponsors received contingent deferred sales charges of $13,069
upon redemption of Class B and C shares, as
reimbursement for sales commissions advanced by Sponsors upon
the sale of such shares.
Certain officers of the Fund are also officers of Sponsors and
IRC. For the six months ended January 31, 1999 the Fund paid
directors' fees and expenses of $2,400.
For the six months ended January 31, 1999, under an agreement
with IRC, the Fund was charged $143,506 for the costs
and expenses related to employees of IRC who provided
administrative, clerical and accounting services to the Fund. In
addition, the Fund was charged $36,116 by an affiliated
company of IRC for the rental of office space.
6. Federal Income Tax Matters
On December 2, 1998, per share distributions were declared as
follows: $0.08, $0.01, $0.02 and $0.10 from net investment
income on the Fund's Class A, B, C and D shares, respectively.
The dividends were paid December 18, 1998. For the six
months ended January 31, 1999, all ordinary income dividends
have been determined to qualify for the dividend received
deduction for corporate shareholders.
For federal income tax purposes, the Fund realized net capital
gains of $331,171 during the six months ended January 31,
1999.
TRANSFER AGENT: Boston Financial Data Services, Inc., Two Heritage
Drive, North Quincy, MA 02171
CUSTODIAN: State Street Bank & Trust Company, Two Heritage Drive,
North Quincy, MA 02171
RETIREMENT PLAN CUSTODIAN: State Street Bank & Trust Company, Two
Heritage Drive, North Quincy, MA 02171
INDEPENDENT AUDITORS: KPMG LLP, 707 Seventeenth Street, Suite 2300,
Denver, CO 80202
UNDERWRITER/DISTRIBUTOR: American Growth Fund Sponsors, Inc., 110
Sixteenth Street, Suite 1400, Denver, CO 80202
AMERICAN GROWTH FUND, INC. BOARD OF ADVISORS:
William D. Farr
Frank J. Johns
President and Director of Farr Farms Co.
Retired President of Denver Dry Goods Co.
Chairman of the Board of Northern Colorado Water Conservancy
Retired Director of Mountain Bell
Past President of the National Cattleman's Association
Past President and Lifetime Member, Denver
Chamber of Commerce
Board Member of the Greeley Water Board
OFFICERS AND DIRECTORS
INVESTMENT ADVISOR
Robert Brody President and
Director Investment Research Corporation
Timothy E. Taggart Exectutive Vice President
110 Sixteenth Street, Suite 1400
D. Leann Baird Secretary
Denver, CO 80202
Michael J. Baum Director
OFFICERS AND DIRECTORS
Eddie R. Bush Director
Robert Brody President,
Treasurer, and
Director
Harold Rosen Director
Timothy E. Taggart
Executive Vice
President and Director
D. Leann Baird Secretary and Director
<PAGE>
